As at February 2011, skye bank plc maintains the following subsidiaries and associated companies: Skye Mortgage Bankers Limited – Paid up share capital of US$6.42 million (NGN:1 billion), Skye Stockbrokers Limited – Dealing member at Nigerian Stock Exchange (NSE), Law Union and Rock Insurance Plc. – 51.95% shareholding in 2007, Apex Integrated Technologies Limited – IT Solutions Company, Skye Trustees Limited – Licensed by the Securities and Exchange Commission (SEC) to function as a Trustee and Funds Manager in the capital market, Skye Financial Services – Paid up capital of US$12.84 million (NGN:2 billion). Asset management, corporate finance and securities underwriting, Skye Bank Sierra Leone Limited – 95% shareholding by Skye Bank Plc. 5% owned by Sierra Leonean investors. Paid up capital of US$3.1 million (SLL:13.85 billion) in 2008, Skye Bank Gambia – Paid up capital of US$3.1 million (GMD:87.8 million) in 2008, Skye Bank Guinea Opened in April 2010.
Skye bank does the business of commercial banking in all its branches whilst its major subsidiaries, law union & rock, Skye Mortgage Bankers, PSL Ltd., Skye Financial Services, Skye Trustees, coop Savings & Loans and Apex Integrated Technical carry on the business of insurance, mortgage financing, capital markets, stock brokerage, trusteeship and financial services, respectively.
THE NIGERIAN ECONOMY
The Nigerian economy encountered a number of challenges in the review period. As at September, implementation of capital projects by Ministries, Departments and Agencies (MDAs) were scored between 35% and 40% by the House of Representatives. This is in addition to observed slow pace of reforms, particularly in the petroleum industry. The Petroleum Industry Bill which seeks reforms in both regulatory and fiscal aspects of the oil and gas industry is yet to be passed.
The country continued to witness sub optimal performance in the upstream petroleum activities as multinationals divest from their oil fields even as oil bunkering activities lingered to the tune of 400,000 barrels a day. In the financial sector, the drive for financial inclusiveness is ongoing: albeit at a slow pace due to the commercial banks’ preference for investments in safer government bonds rather than riskier real sector financial requirements. Although business confidence in the local economy improved to 19% in third quarter (Q3) 2013 from 15.10% in second quarter (Q2) 2013. According to Business Expectation Survey (BES), the third quarter’s 6.81% GDP growth as against 6.18% in second quarter (Q2 2013) remains largely non-inclusive with official unemployment rate as high as 24%.
In spite of the aforementioned challenges, there appears to be progress in a few other sectors. The ongoing reforms in the power sector which resulted in the sale of unbundled distribution and generation of assets culminated in the handover of assets to investors at the end of the third quarter.Also the agricultural sector is recording progress, as the agricultural transformation agenda of the federal government which seeks to create 20 million MT of food to domestic supply by 2015 and create 3.5 million jobs amongst others has been delivering results. This has been largely achieved by incenticizing agric business and facilitating procurement of farm inputs, among other things. Such economic reforms gave some reassurance to investors particularly as Fitch affirmed Nigeria’s Long-term foreign and local currency Issuer Debt Ratings (IDR) and senior unsecured bond ratings at ‘BB-‘ and ‘BB’ respectively; while affirming the country’s Short-term foreign currency IDR at ‘B’ and country ceiling at ‘BB’.
The Consumer Price Index (CPI) which measures inflation currently stands at 8%, an improvement from the 11.9% of December 2012. Inflation continues to trail at a single digit range in line with trends exhibited in 2013.
The exchange rate in the interbank market closed at N159.98/US$1 in December 2013. With constant interventions of the Central Bank to defend the currency, the exchange rate in the inter- bank market is currently at N164.78/US$1 within a band of +/-3%.
HIGHLIGHTS OF 2013 GDP
Nigeria’s real Gross Domestic Product (GDP) grew by 6.81% in Q3 2013, higher than 6.18% in Q1 2013 (and 6.48% in Q3 2012). At current prices, the GDP was estimated at N11.17 trillion in Q3 2013 (an increase from N10.20 trillion in Q2 2013). Similarly, Q3 2013 real GDP, which was estimated at N259.84 billion (using 1990 constant prices), was higher than Q2 2013 real GDP estimated at N212.18 billion. Implicit price deflator, a measure of inflation, rose to 4,297.28 in Q2 2013 (from 4,295.98 in Q2 2013). The non-oil component of Nigeria’s GDP grew, in real terms, by 7.95% in Q3 2013-higher than 7.89% in Q2 2013 and 7.55% in Q3 2012. This was partly attributed to palpable improvement in power supply as well as transformational agricultural policies. On the other hand, the oil sector declined by 0.53% as daily crude oil production declined year-to-date by 9.81% to 1.82 million barrel per day as at November. This was attributed to supply disruptions caused by divestment and/or paucity of investments by international oil companies owing to the non-passage of the petroleum industry bill, corruption, and incessant oil bunkering activities amongst other things.