RIPPLES NIGERIA
Here are the Headlines:
- Naira devaluation impedes MTN Nigeria’s earnings in H1
- Reps member says naira to dollar rate could hit N1000/$1 by December
- Court fines Agropartnerships, Farmforte founders N1.2m, orders transfer of investors’ funds
- FBN Holdings to raise capital via Rights Issue
- CBN orders banks to unfreeze accounts of crypto, fintech companies
Summary:
MTN Nigeria has reported that the naira devaluation also impeded the company’s financial growth in the second quarter of 2023.
In a comment included in its second quarter of the financial statement released on Friday, MTN Nigeria disclosed it recorded an unrealised forex loss of N131.5 billion.
This increased by N117.9 billion or 866.9 per cent compared to the N13.6 billion forex loss reported in the first half of 2022.
“Net finance costs increased by 164.3% due to increased borrowings and an unrealised forex loss of N131.5 billion (H1 2022: N13.6 billion) on our net foreign currency liabilities following the significant devaluation of the Naira.
House of Representatives member, Beni Lar, has warned that the dollar rate could rise to N1000 by December 2023 if the government doesn’t intervene in the foreign exchange market.
Lar, who represents Langtang North/Lantang South Federal Constituency of Plateau State, gave the warning after moving a motion titled, “Need to stabilise Nigeria’s foreign exchange rate”, during plenary.
She said the depreciation of the naira has caused hardship in Nigeria and also affected Nigerians’ schooling abroad.
The founders of Agropartnerships and Farmforte, Osazuwa Osayi, and Osayimwense Uyi, have been fined N1.2 million for operating an illegal investment company.
A five-member panel of the investments and securities tribunal sitting in Abuja on June 8, 2023, issued the fine in a case filed against them by the Securities and Exchange Commission (SEC) on February 28, 2022, but amended on January 20, 2023.
SEC had accused the companies and the founders of using their accounts in several Nigerian banks for unlawful capital market operation after individuals who invested in the firm’s investment packages publicly accused the firms of not paying them their returns in January 2022.
FBN Holdings has disclosed the company will conduct a Rights Issue to raise funds to boost its available capital for operational needs.
