₦airaland Forum

By Dipo Olowookere

Former Nigerian and Watford striker, Odion Ighalo, has joined Manchester United on a six-month loan deal from his Chinese club, Shanghai Shenhua.

Ighalo, whose boyhood club is the Red Devils, scored a total of 39 goals when he played in 99 matches for Watford between 2014 and 2017 before his move to China to first play for Changchun Yatai in the Chinese Super League for two seasons and then to Shanghai Shenhua, netting 10 times in 19 games this season.

With his loan move to Manchester United, Ighalo becomes the first Nigerian to play for the club, which is one of the most successful and biggest in the world and has a huge following back in his home country.
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The 30-year-old Nigerian, who was signed on deadline day on Friday in January transfer window, is still in China, but is expected at Old Trafford in the next few days. He is joining the club to serve as a stopgap for Marcos Rashford, who was injured on January 15 in an FA Cup home match against Wolves. He will be out of action for months.
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Manchester United manager, Ole Gunnar Solskjaer, described his new signing as a “great lad and very professional,” who he further said “will come in and give us an option of a different type of centre-forward for the short spell he’s staying with us.”

He expressed confidence that the “experienced player [will] make the most of his time here” at Old Trafford. The family of Ighalo are presently in Manchester.

United do not have a clause to sign the Lagos-born Edo State striker at the end of his loan spell this summer.
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Ighalo finished as top scorer in African Cup of Nations (AFCON) qualifying with seven goals, before scoring five at the tournament during the summer.

Before settling for Ighalo on deadline day, United had made moves for their former boy, Josh King, who now ply his trade for Bournemouth, as well as Teemu Pukki of Norwich City.

https://businesspost.ng/sports/odion-ighalo-joins-manchester-united-on-loan/

Nigerian Breweries to Sell N45bn Commercial Paper
https://businesspost.ng/economy/nigerian-breweries-to-sell-n45bn-commercial-paper/

Trouble for Nigeria as Oil Hits $56 Per Barrel, Below $57 Benchmark
https://businesspost.ng/economy/trouble-for-nigeria-as-oil-hits-56-per-barrel-below-57-benchmark/

Interswitch Lists N23bn Bond on Stock Exchange
https://businesspost.ng/economy/interswitch-lists-n23bn-bond-on-stock-exchange/

Lagos to Punish Residents Storing Petrol in Homes, Offices
https://businesspost.ng/general/lagos-to-punish-residents-storing-petrol-in-homes-offices/

Ashrami Energy Begins Recruitment Exercise for Graduates
https://businesspost.ng/jobs/ashrami-energy-begins-recruitment-exercise-for-graduates/

Microfinance Banks Need Efficient Succession Policy for Survival—Phillips Consulting
https://businesspost.ng/banking/microfinance-banks-need-efficient-succession-policy-for-survival-phillips-consulting/

By Adedapo Adesanya

Panic continues to grip the global oil market as price of the international benchmark futures, Brent crude, dropped below $57 per barrel on Friday afternoon, spurred by the spread of the coronavirus in some countries.

Coming home, this is a big worry for the Nigerian government, which pegged the average price of crude oil this year to $57 per barrel in the 2020 budget signed into law last month by President Muhammadu Buhari.
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As at the time of this report, the Brent crude was trading down by 60 cents or 1.05 percent at $56.73 per barrel, while the US West Texas Intermediate (WTI) fell 40 cents or 0.77 percent to sell at $51.74 per barrel.

With this development, if prices stay low as a result of panic in the market fuelled by the virus from China, the proposed N2.64 trillion expected from oil revenue may take a hit. Nigeria, Africa’s largest oil producer, produces about 2.18 million barrel per day.
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The coronavirus spread has continued to shake demand since it spread from China to around 20 countries, killing more than 200 people and affecting more than 8,000 people as the World Health Organisation (WHO) declared on Thursday that the outbreak was now a global emergency.

This may spur the Organisation of the Petroleum Exporting Countries (OPEC), which Nigeria is a member, into quick action as there are talks of deeper cuts. Also, there are strong possibility of moving an upcoming policy meeting to early February from March 5 and 6 to address the impact of coronavirus on crude demand.
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Analysts have said that there are possibilities that output cuts might extend from the 1.7 million barrels reached at the cartel’s meeting last year December.

https://businesspost.ng/economy/trouble-for-nigeria-as-oil-hits-56-per-barrel-below-57-benchmark/

By Adedapo Adesanya

**Projects 4% Economic Growth

Amid a rising debt profile on the continent, Africa’s economy is expected to rise to about 4 percent this year and the next, driven by infrastructure investments and natural resource exports, the African Development Bank (AfDB) has revealed.

President of the lender, Mr Akinwumi Adesina, said during the presentation of the African Economic Outlook 2020 at the bank’s headquarters in Abidjan on Thursday, January 30 that Africa’s economic growth remained stable in 2019 at 3.4 percent and is expected to move to 3.9 percent in 2020 and 4.1 percent in 2021.

The slower than expected growth is partly due to the moderate expansion of the continent’s top five economies — Algeria, Egypt, Morocco, Nigeria, and South Africa – whose joint growth was an average rate of 3.1 percent, compared with the average of 4.0 percent for the rest of the continent.
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According to the report, East Africa was still the continent’s fastest-growing region, with average growth estimated at 5.0 percent in 2019; North Africa was the second fastest, at 4.1 percent, while West Africa’s growth rose to 3.7 percent in 2019, up from 3.4 percent the year before.

Central Africa grew at 3.2 percent in 2019, up from 2.7 percent in 2018, while Southern Africa’s growth slowed considerably over the same period, from 1.2 percent to 0.7 percent, dragged down by the devastating natural disasters such as cyclones Idai and Kenneth.

Speaking on Africa’s total debt stock, the bank said both external and domestic debt currently stands at $500 billion. According to Mr Adesina, the Median Debt to Gross Domestic Product (GDP) had risen from 38 percent ten years ago to 54 percent in 2018.
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The AfDB president, however, added that in spite of this development, there was no need for panic though there was need to tackle rising debt levels through the necessary efforts

“However, we must watch the quality of debt, the mix of debt in terms of concessional and non-concessional, the potential negative effects of rising domestic debt in crowding out private sector access to finance, the increasing level of non-Paris Club bilateral debt, and rising volumes of Euro bonds.

“While there is no cause for alarm, greater prudence is needed. We all must now collectively focus on sustainable debt management and greater reliance on domestic resource mobilisation to finance rising fiscal deficits.

Mr Adesina explained that the bulk of the debt was spent on infrastructure, which remains a major challenge for many countries.
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“Governments can improve the cost effectiveness of their expenditures on infrastructure by sharply focusing on quality infrastructure, improved efficiency of public expenditure on infrastructure, while promoting greater participation of private sector in the provision of infrastructure.

“Physical infrastructure, while important, is not enough to drive much needed greater growth and productivity of African economies. African countries should accelerate investments as well in the development of human capital” he advised.

The report also said that higher oil prices were a significant contributor to growth last year. However, it added that only a third of countries have achieved inclusive growth and that, based on current trends, Africa is not on track to meet an international goal of eradicating extreme poverty by 2030.

https://businesspost.ng/world/africas-total-debt-stock-stands-at-500bn-afdb/

MTN May Reduce Stake in Nigeria to 65%, Selloff 14%
https://businesspost.ng/economy/mtn-may-reduce-stake-in-nigeria-to-65-selloff-14/

Fidelity Bank Improves FY19 Earnings by 15%, PAT by 29%
https://businesspost.ng/banking/fidelity-bank-improves-fy19-earnings-by-15-pat-by-29/

Guinness Nigeria Raises Half-Year Revenue to N68.3bn
https://businesspost.ng/economy/guinness-nigeria-raises-half-year-revenue-to-n68-3bn/

Industrial Goods Stocks Sink NSE Further by 0.27%
https://businesspost.ng/economy/industrial-goods-stocks-sink-nse-further-by-0-27/

Naira Depreciates to N364.60/$ at Investors Window Thursday
https://businesspost.ng/economy/naira-depreciates-to-n364-60-at-investors-window-thursday/

Oil Prices Sink as Coronavirus Worsens Market Expectations
https://businesspost.ng/economy/oil-prices-sink-as-coronavirus-worsens-market-expectations/

Market Value of NASD Listed Stocks Rises to N502.3bn
https://businesspost.ng/economy/market-value-of-nasd-listed-stocks-rises-to-n502-3bn/

By Dipo Olowookere

**Pledges to Cut Operational Costs in Q4, Issue Bonds

Group Managing Director of Flour Mills of Nigeria Plc, Mr Paul Gbededo, has said the company will make efforts to reduce its operational costs so as to give more value to shareholders.

Mr Gbadedo made this pledge while reacting to the firm’s financial results for the third quarter of last year, which ended December 31, 2019.

“I am pleased with our quarter 3 results. We have recorded impressive growth in our volumes, and profit before tax increased by 23 percent.

“In line with our purpose of Feeding the Nation, Everyday, I am positive that we are on the right track as we continue to deliver sustainable value for our stakeholders,” he said.
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“Going into the final quarter of the financial year, continued growth is envisaged as we continue to implement targeted strategies, invest in our branding and distribution network and reduce operational costs that will bring even more value in the long run for shareholders,” he added.

An overview of the company’s Q3 earnings showed that the closure of Nigeria’s land borders did not negatively impact of the performance.

The profit before tax increased by 23 percent to N3.7 billion in Q3, and by 9 percent to N12.3 billion YTD, while the revenue rose to N152.7 billion in Q3 from N130.9 billion in Q3 2018/19.
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For the nine months ended December 31, 2019, the revenue was N423.5 billion, representing a 6 percent increase compared with same period last year, while the gross profit rose by 11 percent in Q3 and by 3 percent YTD to N47.8 billion from N46.6 billion.

Finance cost reduced to N4.3 billion, a significant drop (20 percent) versus N5.3 billion in Q3 2018/19 (21 percent year-on-year decline).

The leading integrated food business and agro-allied group, owners of the iconic food brand Golden Penny, recorded remarkable growth in its volumes from 6 percent during first HY to 8 percent in the period under review.

The agro-allied, sugar and food value chains all had impressive results this quarter, with the food business now moving towards expected projections.
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Gains in the sector can be attributed to a combination of ongoing brand loyalty and refined regional strategies that are designed to increase market penetration. These strategies have been boosted by recent improvements in the domestic market as a result of gains from the boarder closure.

The management’s strategy on increasing the efficiency of its balance sheet and improving working capital continues to. yield the desired result, with finance cost recording a steady decline. The group said it plans to issue corporate bonds in Q4.

https://businesspost.ng/economy/border-closure-boosts-flour-mills-q3-earnings/

FBN Holdings Grows 2019 Pre-Tax Profit to N73.6bn
https://businesspost.ng/banking/fbn-holdings-grows-2019-pre-tax-profit-to-n73-6bn/

By Dipo Olowookere

Transactions remained bearish on the floor of the Nigerian Stock Exchange (NSE) at the midweek session, shedding 0.91 percent at the close of business.

The All-Share Index (ASI) decreased at the trading day by 267.73 points to close at 29,110.90 points, while the market capitalisation went down by N138 billion to settle at N14.995 trillion, lower than N15.133 trillion it ended on Tuesday.

It was observed that Zenith Bank was the most transacted equity on Wednesday at the stock market. The lender exchanged 46.6 million units worth N980.7 million.

Unilever Nigeria transacted 25.0 million shares valued at N375.3 million, GTBank exchanged 24.3 million equities for N740.2 million, FCMB traded 21.1 million stocks valued at N41.1 million, while UBA sold 12.4 million equities for N102.0 million.
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Business Post reports that when the market closed for the day, the total volume of shares transacted by investors reduced by 3.26 percent to 242.8 million units from 250.9 million units of the previous day, while the value of the trades went down by 4.91 percent to N4.6 billion from N4.8 billion.

On the price movement chart, MTN Nigeria emerged as the heaviest price loser, going down by N5 to settle at N120 per unit, while GTBank lost 90 kobo to finish at N30.10 per share.
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Unilever Nigeria depreciated by 80 kobo to sell at N15 per unit, UAC Nigeria dropped 55 kobo to trade at N10 per share, while BOC Gas fell by 45 kobo to quote at N4.50 per unit.

On the flip side, Flour Mills topped the gainers’ chart after adding N1.20 to its share price to close at N22.35 per unit, while Nigerian Breweries rose by N1 to quote at N55 per unit, while Julius Berger, Union Bank and Oando appreciated by 10 kobo each to settle at N22.25 per share, N6 per share and N3.74 per share respectively.
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Yesterday, a Senator of the opposition Peoples Democratic Party (PDP) Mr Enyinnaya Abaribe, who is the Senate Minority Leader, asked President Muhammadu Buhari to reign from office since he has been unable to solve the insecurity issues in the country.

At the plenary yesterday, lawmakers asked the President to sack the service chiefs and replace them with those who can bring peace into the country.

https://businesspost.ng/economy/stock-market-loses-n138bn-amid-call-for-buharis-resignation/

SEC Gives Stockbrokers Deadline to File Liquidity Position
https://businesspost.ng/economy/sec-gives-stockbrokers-deadline-to-file-liquidity-position/

11 Plc Grows Q4’19 Earnings by 16%, Profit Drops 5%
https://businesspost.ng/economy/11-plc-grows-q419-earnings-by-16-profit-drops-5/

Hassan-Baba, Orji Join UBA Board
https://businesspost.ng/jobs/hassan-baba-orji-join-uba-board/

Nigeria's Excess Crude Account, Once Over $22bn, Depletes to $321m
https://businesspost.ng/economy/nigerias-excess-crude-account-once-over-22bn-depletes-to-321m/

MTN Nigeria to Boost Operations With $1.6bn
https://businesspost.ng/technology/mtn-nigeria-to-boost-operations-with-1-6bn/

MBU Capital Acquires UK Subsidiary of Union Bank
https://businesspost.ng/banking/mbu-capital-acquires-uk-subsidiary-of-union-bank/

Crude Oil Gains as OPEC Ponders Supply Cut Extension
https://businesspost.ng/economy/crude-oil-gains-as-opec-ponders-supply-cut-extension/

Capital Market Critical to Economic Growth—SEC
https://businesspost.ng/economy/capital-market-critical-to-economic-growth-sec/

Muslims Form Majority of South West’s Population—MURIC
https://businesspost.ng/general/muslims-form-majority-of-south-wests-population-muric/

Julius Berger Grows Q4 PAT by 117% Amid 3% Drop in Revenue
https://businesspost.ng/economy/julius-berger-grows-q4-pat-by-117-amid-3-drop-in-revenue/

World Council of Churches Begs Buhari to Protect Christians
https://businesspost.ng/general/world-council-of-churches-begs-buhari-to-protect-christians/

Naira Depreciates at Investors, Interbank Windows
https://businesspost.ng/economy/naira-depreciates-at-investors-interbank-windows/

NASD Exchange Sheds 1.94% Despite Gains by CSCS, Friesland
https://businesspost.ng/economy/nasd-exchange-sheds-1-94-despite-gains-by-cscs-friesland/

Nigerian Stock Exchange Remain Under Pressure, Sheds 0.59%
https://businesspost.ng/economy/nigerian-stocks-remain-under-pressure-lose-0-59/

Western Lotto Accuses Baba Ijebu of Tax Fraud, Petitions EFCC
https://businesspost.ng/general/western-lotto-accuses-baba-ijebu-of-tax-fraud-petitions-efcc/

MBU Capital Acquires UK Subsidiary of Union Bank
https://businesspost.ng/banking/mbu-capital-acquires-uk-subsidiary-of-union-bank/

Nigeria's Excess Crude Account, Once Over $22bn, Depletes to $321m
https://businesspost.ng/economy/nigerias-excess-crude-account-once-over-22bn-depletes-to-321m/

Capital Market Critical to Economic Growth—SEC
https://businesspost.ng/economy/capital-market-critical-to-economic-growth-sec/

By Dipo Olowookere

The balance left in the Excess Crude Account (ECA) of Nigeria as at Monday, January 20, 20120 was $321.4 million, Business Post has gathered.

Last week, the National Economic Council (NEC) held a meeting in Abuja, which was presided over by Vice President Yemi Osinbajo. The council comprises Governors of the 36 states of the federation, the FCT Minister and Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele.

At the gathering, NEC was informed of the amount left in the ECA and other special accounts of the federation, including the stabilization account, which stood at N31.8 billion as at Tuesday, January 21, 2020; the Development of Natural Resources Account, which had N97.0 billion as at January 21, 2020; and the Budget Support facility deduction which was in progress with N29 billion so far remitted to the CBN.

Business Post reports that the ECA was created by the administration of former President Olusegun Obasanjo in 2004 to keep the extra amount made from the sale of crude oil’s benchmark.

For instance, like in the 2020 budget, where the crude oil benchmark was set at $60 per barrel, anytime the commodity is sold above $60, the excess is saved in the ECA for rainy days and this helped the country during the 2008 global financial meltdown as it was not felt by Nigeria.

However, the tradition of not touching the ECA was broken under the administration of late Umaru Yar’Adua, when Governors under the aegis of the Nigerian Governors Forum led by former Senate President and then Governor of Kwara State, Mr Bukola Saraki, instituted a lawsuit at the Supreme Court in 2008 to seek an injunction to force federal government to share what is left in the account.
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When Mr Obasanjo handed over power to late Mr Yar’Adua in 2007, according to the Ministry of Finance, the balance in the ECA was $9.43 billion and in 2008, he grew the amount to over $22 billion, the highest ever in Nigeria’s history. However, he passed on in 2010 and his deputy, former President Goodluck Jonathan, was sworn in as an acting President in May 2010.

Under the Jonathan administration, the ECA depleted as a result of his heeding to the demand of the Governors and it was reported that the amount decreased to about $4 billion by 2010.

In 2015, when the present administration of President Muhammadu Buhari commenced, the sum of $2 billion, according to a former Minister/Deputy Chairman of National Planning Commission, Mr Abubakar Olarenwaju Sulaiman, was left by the Jonathan government for Mr Buhari.

In 2016, when the state Governors asked the Buhari administration to share the ECA, what was then left was about $2.3 billion.

In 2018, during a briefing with newsmen in Abuja on outcome of the NEC meeting, Governor of Kano State, Mr Abdullahi Umar Ganduje, said the former Minister of Finance, Mrs Kemi Adeosun, informed the council that as at Monday, January 15, 2018, the amount left was $2.3 billion and Mrs Adeosun later said in June of same year, 2018, that the balance had declined to $1.9 billion. This was after government had removed $1 billion from the account to fight terrorism in the country despite opposition from the opposition party, the Peoples Democratic Party (PDP).

As at October 2019, the amount left in the ECA was $324 million, but according to NEC, in an update of its last meeting in Abuja, the money has now reduced to $321 million.
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During the meeting, Chairman of the NEC Committee on the matter and Governor of Kaduna State, Mr Nasir El-Rufai, briefed the council on the proposed consideration of 20 percent of pension funds to be invested in infrastructural projects such as rail, roads and electricity.

On the review of the status of the ownership structure of the electricity power Distribution Companies (DISCOs), he said plans were ongoing to determine the level of investment/ownership of states and federal governments in the Discos, and requested NEC to, among other things, place media advertisements for the public to submit memoranda on the way forward for the electricity sector.

NEC approved the prayers of the Committee that stakeholders in the sector be engaged, and that submissions from the public be received for analysis.

Also briefing NEC on polio eradication and improved routine immunization in Nigeria, the Minister of Health, Mr Osagie Emmanuel Ehanire, said Nigeria was on course to attaining polio-free status by June 2020, noting that the country has not recorded any new case of polio infection in the last three and half years.

He said there are incidences of Lassa Fever in some states namely; Edo, Kano, Ondo, Ebonyi and Taraba resulting in 84 cases and 15 deaths, noting that the National Centre for Disease Control has been alerted and is on top of the situation.

Mr Ehanire reported to council that the use of paracetamol to cook meat and the consequences that comes with it as well as the use of Aspirin to purify water, are deadly practices that damages major body organs, warning that these practices should be avoided.
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He also briefed council on the Coronavirus that emerged in China, which has spread to four border countries such as United States of America, Thailand, Japan and Korea.

During his presentation, the Emir of Kano, Muhammadu Sanusi II, made the presentation to the council in his capacity as the Chairman of the Board of Trustees of the Nutrition Society of Nigeria.

Mr Sanusi, who titled his presentation a Call for Action, said “over 12 million children are stunted in Nigeria, while 2.6 million are wasted annually due to malnutrition,” adding that Nigeria records the highest number of stunted children in Africa.

According to the monarch, malnutrition accounts for 53 percent of deaths among children as high child mortality and stunting are linked to deficiencies in key micronutrients (vitamin A, Iron, Zinc and Calcium), macronutrients (Carbohydrates, Protein, Fats) and associated poor feeding practices, as well as overall nutritional status of the mother.

The Emir, who stated that the burden of malnutrition which include stunting, under-weight, obesity and other diet related non-communicable diseases, can be treated, said, “65 percent of dietary energy supply is derived from cereals, roots and fibres indicating low dietary diversity.”

Continuing, he said basic causes of malnutrition are poverty, socio-cultural, economic and political environment.

At the gathering, NEC appealed to states and local governments to deal with the problem by investing more in issues relating to malnutrition, adding that states should key into the World Bank sponsored programme on nutrition.

https://businesspost.ng/economy/nigerias-excess-crude-account-once-over-22bn-depletes-to-321m/

By Dipo Olowookere

The Muslim Rights Concern (MURIC) has said majority of people living in the South Western region of Nigeria are Muslims. Director of the group, Mr Ishaq Akintola, said this while reacting to the Western Nigeria Security Network code-named Amotekun, Yoruba word for leopard.

Mr Akintola, who called on Governors of the South West states to rebrand Amotekun because it has its origin in the Bible, emphasised that it would not be possible for Muslims to be a part of it.

“Jeremiah 5:6 says, ‘A leopard shall guard over their city’. Amotekun is mentioned in this verse with particular reference to guarding a city. Now, we have a sub-region where Muslims have been under persecution for ages coming up with a security outfit under the name of the same leopard mentioned in the bible as a guard over the city,” he said.
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According to him, “This is not a coincidence. The handlers of Amotekun picked the name deliberately from the Bible in order to score a spiritual point. It is very critical. It calls for serious concern. So, why give a security unit a religious name?”

“We advise the planners of the new security outfit to give it another name in the interest of peace and harmony in the sub-region. This is necessary if they want to carry all stakeholders along. Amotekun as a name is already controversial.

“We do not need a Christian security unit. Neither do we need a Muslim security outfit. The security agency in the South West must not only be neutral, it must also be seen to be neutral,” he said in a statement.
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“We affirm that Muslims form the majority in the population of the south-west. They are therefore critical stakeholders and the unity of the Yoruba cannot become fait accompli without involving the Muslims in the sub-region. Muslims must be carried along in any security network in the zone. We are interested in security. We are security conscious.

“We will therefore join a South West security initiative if it is not tainted with Christian landmarks. We will have confidence in a security outfit that involves Muslim leaders, not one that parades pastors, bishops and archbishops alone.
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“It must also be noted that a security group that starts with subtle threats to our brethren in faith in another part of the country cannot be safe for Muslims in Yorubaland. There is no racism or tribalism in Islam (Qur’an 49:13). It is a global brotherhood. Yoruba Muslims love Yorubaland.

“They also love Nigeria. But they owe their Creator, Allah, an unflinching and undiluted love towards their brothers and sisters in Islam no matter their race, tribe or colour,” he added.

Mr Akintola had earlier had accused governors of the south-west of recruiting only Christians into Amotekun which he had described as a militia.

https://businesspost.ng/general/muslims-form-majority-of-south-wests-population-muric/

By Dipo Olowookere

Some Yoruba actors going for a movie production in Ilorin, Kwara State, were on Monday attacked by some hoodlums suspected to be herdsmen.

One of those attacked during the incident was a popular actress known as Toyisi Adesanya, who called on federal government to intensify efforts to safeguard lives and properties of Nigerians.
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It was gathered that one of the actors, identified as Juwon, lost his life during the shooting by the bandits, who reportedly jumped on the Ogbomoso/Ilorin Expressway and started shooting sporadically at motorists plying the Otte area of the road.

According to Punch, the deceased also worked as a personal assistant to Toyosi Adesanya, who was on the journey with other colleagues of hers.
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“We can’t continue like to this. The poor boy’s life was just taken away like that. We can’t continue to be held to ransom by some armed bandits. The FG should come to our aid,” the actress fumed.

Confirming the incident, Kwara State Police Public Relations Officer, Mr Ajayi Okasanmi, said the incident involved some actors and actresses going to shoot a film at a location, adding that investigation had commenced on the incident.

https://businesspost.ng/showbiz/gunmen-shoot-actors-going-for-movie-production-in-ilorin/

By Dipo Olowookere

Efforts are being made to ensure that in the next two years, rice produced in Nigeria are exported to other African countries as well as Europe, America and possibly Asia.

Minister of Agriculture and Rural Development, Mr Muhammad Sabo Nanono, during a chat with newsmen in Lagos on Monday, said the local production of the staple food has increased since federal government announced the closure of land borders in August 2019.

“Before the closure of our land border, most of these rice milling plants were partially operating, but now, they not only operate in full capacities but are also expanding.
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“As at today, we have 11 rice milling plants with the capacity to produce from 180 tonnes to 350 tonnes of rice per day.

“In a few months, another mill with a capacity to produce 400 tonnes of rice per day is going to be opened, with another upcoming 34 smaller mills; then, we have clusters in different areas,” the Minister said after a working visit of the Nestle Nigeria Plc.

He noted that local rice farmers were fully engaged and use between 200 farm lands and 300 farm lands directly, pointing out that, “If we maintain the momentum, in the next two years, we may export rice to other countries.”
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Mr Nanono stated that, “I was worried in terms of the production of rice, but what I have found out is that most rice producers have stocked rice for the next six months,” emphasising that, “This means that before the stock is finished, dry season rice will be harvested, and before that finishes, rainy season will come back.”

According to him, it is only in three months from November to January that rice is not being grown in Nigeria, saying, “We cultivate rice in a nine-month cycle; probably as we move on the cycle, will widen, so, we do not have a problem with rice processing.”
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The Minister lauded Nestle Nigeria Plc for its role in assisting local farmers and creating jobs for Nigerians.

Earlier in his welcome remarks, Managing Director of Nestle Nigeria Plc, Mr Mauricio Alarcon, thanked the Minister and his delegation for the visit and called for stronger and robust working relationship with the Ministry.

Mr Alarcon further said that, “We source 80 percent of our products locally; we source 100 percent of maize for Golden Morn locally; soya, millet, sugar, salt and cocoa are locally sourced.”

https://businesspost.ng/economy/nigeria-plans-exportation-of-rice-to-europe-others-by-2022/

Julius Berger Grows Q4 PAT by 117% Amid 3% Drop in Revenue
https://businesspost.ng/economy/julius-berger-grows-q4-pat-by-117-amid-3-drop-in-revenue/

By Adedapo Adesanya

Nigeria’s inflation rose to 11.98 percent in December 2019, driven by increases recorded in food prices as a result of the border closure. Not too long ago, the National Bureau of Statistics (NBS) released a report on selected food price watch for the month.

From the report, Business Post gathered that rice, one of the major commodities consumed in the country, which was once of the reasons for the closure of the land borders due to smuggling into Nigeria, recorded a 3.2 percent increase in price from N445 (per kg) in November 2019 to N460 in December, while it saw a 24.1 percent increase year-on-year.

It was stated that the locally produced variant equally recorded an increase of 0.84 percent month-on-month to N382/kg from N379/kg recorded in the previous month, while there was 20 percent rise year-on-year.

Titus frozen fish, according to the stats office, increased in the period under review by 0.6 percent to N981 per kilo, which showed a year-on-year increase of 5.9 percent. Also, mackerel fish went up by 0.2 percent to N953 per kg, while year-on-year, prices rose 2.0 percent.

For tomato, there was an increase by 5.1 percent to N264 per kg in December compared to N251/kg in November 2019, while on a year-to-year basis, it went down by 2.8 percent.

At the dairy session, with the country’s restriction on frozen birds from neighbouring countries, the price of frozen chicken dropped by 0.64 percent in the month of December to N1996 per kg, despite a 22.8 percent year-on-year increase. Chicken feet recorded a 1.80 percent rise to N699 per kg on average while it saw a 5.3 decrease in price in the same period of 2018. The price of chicken wings also rose by 2.5 percent in December to N916 per kg, while on a year-on-year, it dropped by 3.0 percent.

The average price of one dozen of Agric eggs medium size decreased month-on month by 1.32 percent to N457.80 in December 2019 from N463.91 in November and year-on-year by 1.96 percent, while the average price of piece of Agric eggs medium size (price of one) decreased year-on-year by 4.37 percent and month-on-month by 1.13 percent to N40.72 in December 2019 from N41.18 in November 2019.

Brown beans dropped 2.5 percent month-on-month to N299 per kilo and on year-on-year basis, it decreased by 23 percent in price, while white beans dropped by 1.1 percent to N281 per kg and 18.3 percent year-on-year.

The price of beef - with bones rose in the month of December by 1.91 percent to N1,046, and by 4.8 percent year-on-year, while the boneless variety dropped by 0.04 percent in December to N1293 per kg, but recorded a 1.71 percent increase year-on-year.

For the price of white gaari at the market, it dropped by 0.41 percent in December to average of N159 per kg, which is a 4.4 percent year-on-year decrease, while on the other hand, the yellow gaari increased by 1.1 percent to N183 per kg in December, but dropped 6.5 percent year-on-year.

Yam recorded a 1.8 percent rise to average N207 per kilo month-on-month in December 2019 and 2.7 percent year-on-year.

The price of groundnut oil rose by 0.07 percent month-on-month in December to N580 for a litre, while it dropped 0.87 percent year-on-year. Also, the price of vegetable oil rose by 0.7 percent in December to N516 per litre and increased by 1.67 percent year-on-year. For the price of palm oil, it increased by 0.5 percent month-on-month to N469, but decreased by 1.1 percent year-on-year.

https://businesspost.ng/economy/prices-of-oil-foodstuffs-escalate-as-border-closure-bites-harder/

NSE to Launch Growth Board for Listing SMEs, Start-ups on Wednesday
https://businesspost.ng/economy/nse-to-launch-growth-board-for-listing-smes-start-ups-on-wednesday/

Olam Rejigs Business After Acquisition of Dangote Flour, Mulls IPO
https://businesspost.ng/economy/olam-rejigs-business-after-acquisition-of-dangote-flour-mulls-ipo/

N23bn Stocks Exchange Hands in 21,156 Deals in One Week
https://businesspost.ng/economy/n23bn-stocks-exchange-hands-in-21156-deals-in-one-week/

Crude Oil Drops to Three-Month Low of $58
https://businesspost.ng/economy/crude-oil-drops-to-three-month-low-of-58/

By Dipo Olowookere

The board of Unilever Nigeria Plc, one of the consumer goods companies listed on the Nigerian Stock Exchange (NSE), has released the financial statements of the firm for the year ended December 31, 2019.

However, the performance of the organisation was not impressive as the border closure negatively impacted on the company’s figures, with both topline and bottomline pointing south.

In the unaudited interim earnings of the firm released to the NSE last Thursday, revenue depreciated by 34 percent to N60.8 billion from N92.0 billion achieved in the 2018 fiscal year, just as the cost of sales closed at N54.1 billion versus N64.6 billion, with the gross profit reducing to N6.7 billion from N27.4 billion.

Also, the selling and distribution expenses were slashed by the firm to N3.2 billion from N4.2 billion, while the marketing and administrative expenses were pruned to N13.2 billion from N14.7 billion, with other income down to N65.4 million from N2.3 billion.
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In the period under review, Unilever Nigeria, which has some of its operations done from neighbouring Ghana, announced an operating loss of N10.4 billion against an operating profit of N10.4 billion in 2018 financial year. A further analysis of the results by Business Post showed that the finance income reduced to N2.9 billion from N3.6 billion, while the finance costs rose to N824.2 million from N452.6 million.

In the period under review, the company declared a loss before tax of N8.3 billion versus a profit before tax of N13.6 billion in 2018 and a loss after tax of N4.2 billion in FY 2019 against a PAT of N10.0 billion. It was observed that the firm had a tax credit of N4.1 billion in the 2019 financial year.
ALSO READ Unilever Nigeria to Raise N63b from Capital Market

At the close of business on December 31, 2019, Unilever Nigeria had a negative earnings per share of 74 kobo compared with N1.77 EPS in the corresponding period of 2018.

Business Post reports that the company’s performance in the last quarter of last year was very abysmal as revenue significantly went down by 58 percent to N9.1 billion from N21.7 billion as marketing and administrative expenses rose to N5.2 billion from N3.5billion, leaving it with a gross loss of N3.0 billion against a profit of N6.5 billion in the same quarter of 2018.

Also, Unilever Nigeria said it had an operating loss of N9.6 billion in Q4 2019 versus a profit of N1.9 billion in Q4 2018, while it posted a pre-tax loss of N9.0 billion against a pre-tax profit of N2.9 billion in the same period of 2018, with a post-tax loss of N4.8 billion in contrast to a post-tax profit of N2.1 billion in the fourth quarter of 2018.
ALSO READ NSE Holds Seminar on Fixed Income Trading

Last August, the Nigerian authorities closed the land borders to curtail smuggling of goods and arms into the country. This pushed inflation up to nearly 12 percent as at December 2019. It is not certain if the borders would be re-opened soon as federal government said the country’s neighbours must agree to step up efforts to tackle smuggling.

https://businesspost.ng/economy/border-closure-plunges-unilever-into-n8bn-loss-as-revenue-drops/

Border Closure Plunges Unilever into N8bn Loss as Revenue Drops
https://businesspost.ng/economy/border-closure-plunges-unilever-into-n8bn-loss-as-revenue-drops/

SEC Goes Tough on Illegal Fund Managers
https://businesspost.ng/economy/sec-goes-tough-on-illegal-fund-managers/

OPEC Considers Output Cut Extension Till End of 2020
https://businesspost.ng/economy/opec-considers-output-cut-extension-till-end-of-2020/

FG Insists New Finance Act Will Stimulate Economy
https://businesspost.ng/economy/fg-insists-new-finance-act-will-stimulate-economy/

Reforms by Buhari Have Attracted Investors’ Interests—Osinbajo
https://businesspost.ng/economy/reforms-by-buhari-have-attracted-investors-interests-osinbajo/

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Friday, January 24, announced a rise in the basis points of the Cash Reserve Ratio by 500 basis points from 22.5 percent to 27.5 percent.

The apex bank, at the end of its first Monetary Policy Committee (MPC) meeting on Friday in Abuja, however, disclosed that it was keeping other parameters constant, with the Monetary Policy Rate (MPR) at 13.5 percent. The CBN also left the Liquidity Ratio (LR) steady at 30 percent and the Assymetric Corridor around the MPR at +200/-500 basis points.
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Governor of the CBN, Mr Godwin Emefiele, while addressing newsmen on outcome of the earlier postponed two-day meeting of the MPC, which started on Thursday, expressed concerns about the nation’s inflation which reached 11.98 percent in December, saying that inflation above the 12 percent will be inimical to output growth.
ALSO READ Nigeria Attracts $908.3m Foreign Investments in Q1

Mr Emefiele also expressed the MPC concerns on rising debt in the country and called on the government to rather raise revenues and depend less on oil earnings.

Business Post reports that Cash Reserve Ratio is the is the minimum amount of customers' deposits commercial banks are required to keep with the central bank. Before the increase by the MPC yesterday, banks were required to put in care of the CBN 22.5 percent of the customers' total deposits.

https://businesspost.ng/economy/cbn-raises-crr-from-22-5-to-27-5/

Trouble for Nigeria as Brent Falls Below $60 on Coronavirus Spread
https://businesspost.ng/economy/trouble-for-nigeria-as-brent-falls-below-60-on-coronavirus-spread/

SEC Woos Low-Income Earners to Capital Market, Promises Protection
https://businesspost.ng/economy/sec-woos-low-income-earners-to-capital-market-promises-protection/

Beta Glass Tops Gainers' Log as Stock Market Gains 0.13%
https://businesspost.ng/economy/beta-glass-tops-gainers-log-as-stock-market-gains-0-13/

Unlisted Securities End Week Flat Despite Rise in Volume
https://businesspost.ng/economy/unlisted-securities-end-week-flat-despite-rise-in-volume/

AfDB, London Stock Exchange to Attract $5trn into African Capital Markets
https://businesspost.ng/economy/afdb-london-stock-exchange-to-attract-5trn-into-african-capital-markets/

VAT: Ikeja Electric Announces Price Hike in MAP Meters
https://businesspost.ng/general/vat-ikeja-electric-announces-price-hike-in-map-meters/

By Dipo Olowookere

One of the leading electricity distribution companies in Nigeria, Ikeja Electric Plc, has announced an upward review in the prices of meters sold to customers under the Meter Asset Provider (MAP) introduced by federal government.

In a notice to its customers on Friday, the energy firm said it was increasing the price for procuring the MAP meters as a result of the hike in the Value Added Tax (VAT) from Saturday, February 1, 2020.

President Muhammadu Buhari recently signed a Finance Bill into law, approving the upward review of VAT to 7.5 percent from 5 percent from next weekend.

Ikeja Electric explained that the increase in the price of MAP meters is to reflect the new VAT hike. For the single-phase meter, the new price is N39,765.86, while the three-phase meter now costs N72,085.68.

“This is to notify all Ikeja Electric customers that following the recent increase in Value Added Tax (VAT) introduced by the federal government, prices for prepaid meters have been reviewed to reflect current realities. The new prices take effect February 1, 2020 as indicated by the directive,” the company.

“Kindly note the change in prices as these will be the cost invoices sent from February 1, 2020,” the firm stated in a notice seen by Business Post.

ehttps://businesspost.ng/general/vat-ikeja-electric-announces-price-hike-in-map-meters/

By Adedapo Adesanya

Brent crude futures fell below $60 on Friday, posing a threat to Nigeria’s 2020 budget, which put oil benchmark at $60 per barrel, as the spread of the coronavirus in China continues to affect demand due to restrictions placed on travel.

The bearish performance for the Brent crude continued as it further dropped 2.14 percent equivalent to $1.31 to trade at $59.97 per barrel on Friday night at the global market.

Also, the US West Texas Intermediate (WTI) crude further moved down by 2.32 percent or $1.29 to trade at $54.30 per barrel. This performance was the lowest settlement for the American futures since November last year.

During the preparation of the country’s budget, oil prices were pegged at $60 per barrel because global economy issues like the US-China trade deal and the US-Iran conflict had helped prices moved up.
ALSO READ Nigeria On Right Path To Diversified Economy—Amosun

However, with this unforeseen circumstances, the country’s hope of raising revenue to fund the this year’s budget is already under threat because the sale of the commodity is the main source of foreign exchange earnings for Nigeria.

This week started on the bullish note for oil prices, after military forces in Libya blocked oilfields which threatened to cut off the entire 1.2 million barrels per day oil production of the African OPEC member.

But on Tuesday, despite the continued blockade in Libya, oil prices started to slip as market faced a new challenge over the deadly coronavirus in China, which, analysts say could cut oil demand as travel restrictions in and around the area of the outbreak are already in place.
ALSO READ FG Begins Savings Bonds Sales for May 2018

The SARS CoV, better known as the SARS Coronavirus, is highly contagious and has put two Chinese cities on lockdown since Thursday as health authorities around the world scramble to prevent a global pandemic.

The coronavirus outbreak has so far killed 17 people and infected more than 800 people and to prevent this, a widespread travel restriction has followed, reducing regional travel meaning that the oil market could see a drop of 260,000 barrels per day in the global oil demand market—170,000 bpd of which would be in the form of jet fuel.

The virus has spread to South Korea, Japan, Thailand, Vietnam and the United States, among other places. On Friday, the CDC confirmed the second case in the United States and this may further threaten oil prices even with certain trends which normally helped prices took the backseat such as reports by the US Energy Information Administration (EIA) that inventory fell by 400,000 barrels for the week ending January 17.
ALSO READ Agusto & Co Affirms 'Bbb' Rating to C&I Leasing N600m Bond

Even despite the disruption caused by the virus, the oil market is also faced by concerns of oversupply, as the International Energy Agency (IEA) said it there is expectations of a surplus of 1 million barrels per day in the first half of the year.

https://businesspost.ng/economy/trouble-for-nigeria-as-brent-falls-below-60-on-coronavirus-spread/

By Dipo Olowookere

Residents of Lagos State have been urged to adopt and practice a high standard of personal and environmental hygiene including regular hand washing, covering of mouth and nose when coughing and sneezing, avoiding close contact with anyone showing symptoms of respiratory illness such as coughing and sneezing while taking biosecurity precautions with domestic and wild animals as measures against the transmission of any kind of contagious infection, including a new virus, the novel Coronavirus (nCoV), which is currently raging in China.

In a statement issued on Thursday, Commissioner for Health in Lagos State, Mr Akin Abayomi, said government was working with federal agencies to ramp up its level of preparedness considering the large commercial trading traffic between Nigeria, China and Thailand.

He advised citizens travelling from South East Asia or any country where the infection has been reported or who have had contact with travellers from that region and experiencing above stated symptoms associated with the disease to go to the nearest health facility for immediate assessment and treatment or call 08023169485, 08033565529 or 08052817243 for assistance.
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“The Lagos State Biosecurity team in collaboration with Lagos University Teaching Hospital is currently working on building urgent capacity to identify the virus in our Biosecurity facility and isolation wards located at the Mainland Infectious Disease Hospital in Yaba in the event of any suspected case arriving in Lagos State.

“We are in touch with Nigeria Center for Disease Control (NCDC) in Abuja to align our strategies. Importantly we are also collaborating with the Federal Ports Authority at air, land and sea border posts to elevate screening and surveillance of incoming travellers”, he said.

Mr Abayomi described coronaviruses as a large family of viruses that cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).
ALSO READ 116m African Children for Polio Immunisation Next Week

He explained that the novel Coronavirus (nCoV) is a new strain that had not been previously identified in humans, adding that Coronaviruses are primarily infections of animals that can be transmitted to humans.

“On 31 December 2019, the World Health Organisation (WHO), China Country Office was informed of a cluster of cases of pneumonia of unknown cause detected in Wuhan City, Hubei Province of China. A novel Coronavirus was identified as the causative virus by Chinese authorities on the 7th of January,” Mr Abayomi said.

“As of 22nd January 2020, a total of 471 cases have been confirmed in South East Asia and USA with nine deaths. There is evidence now that the infection is able to spread from person to person”, the Commissioner added.
ALSO READ WHO Tackles Cholera Outbreak in North-Eastern Nigeria

He disclosed that the common signs and symptoms of the infection include fever, cough, shortness of breath and difficulty in breathing, explaining that in more severe cases, the infection can cause pneumonia, severe acute respiratory syndrome, kidney failure and even death.

He said though no case of the virus has been identified in Lagos, Nigeria or anywhere in Africa, no fewer than nine deaths have been recorded in China and “some foreign countries, including the United States of America.”

The Commissioner for Health said, “The Lagos State Government is committed to the health and safety of her citizens and so, there is no cause for panic or alarm. This alert is just to assure you that we are preparing for any eventuality as directed by the Governor.”

https://businesspost.ng/health/lagos-alerts-public-on-coronavirus-lists-precautionary-measures/

Total Transactions on NSE Drop 20% in 2019 to N1.9trn
https://businesspost.ng/economy/total-transactions-on-nse-drop-20-in-2019-to-n1-9trn/

Dangote Cement Shareholders Eye More Dividends from Share Repo
https://businesspost.ng/economy/dangote-cement-shareholders-eye-more-dividends-from-share-repo/

Total Nigeria Expresses Willingness to Increase Investment
https://businesspost.ng/economy/total-nigeria-expresses-willingness-to-increase-investment/

Lagos Alerts Public on Coronavirus, Lists Precautionary Measures
https://businesspost.ng/health/lagos-alerts-public-on-coronavirus-lists-precautionary-measures/

Brent Falls to $62 as Coronavirus Outbreak Affects Demand
https://businesspost.ng/economy/brent-falls-to-62-as-coronavirus-outbreak-affects-demand/

Investors Stake N626bn on N155bn FGN Bonds, Rates Drop
https://businesspost.ng/economy/investors-stake-n626bn-on-n155bn-fgn-bonds-rates-drop/

Naira Remains Stable Against Dollar at Parallel, Interbank Markets
https://businesspost.ng/economy/naira-appreciates-against-dollar-at-parallel-bdc-markets/

Prices Remain Flat at NASD Exchange's Midweek Sesstion
https://businesspost.ng/economy/nasd-exchange-closes-flat-at-midweek-trading-sesstion/

Brent Sheds Over 2% as Oil Market Faces Oversupply
https://businesspost.ng/economy/brent-sheds-over-2-as-oil-market-faces-oversupply/

Teenagers Offer Solution to Nigeria's Agric Value Chain at InterswitchSPAK 2.0
https://businesspost.ng/education/teenagers-offer-solution-to-nigerias-agric-value-chain-at-interswitchspak-2-0/

Beer War: International Breweries’ Trophy Takes Lead at Retail Market
https://businesspost.ng/economy/beer-war-international-breweries-trophy-takes-lead-at-retail-market/

Nigeria's Capital Market Contributes Less Than 10% to GDP—SEC DG
https://businesspost.ng/economy/nigerias-capital-market-contributes-less-than-10-to-gdp-sec-dg/

Court, Shareholders Okay Continental Reinsurance Restructuring Plan
https://businesspost.ng/economy/court-shareholders-okay-continental-reinsurance-restructuring-plan/

Kenya Lists Green Bond on London Stock Exchange
https://businesspost.ng/economy/kenya-lists-green-bond-on-london-stock-exchange/

Economic Contribution of Churches to Nigeria, Africa
https://businesspost.ng/featureoped/economic-contribution-of-churches-to-nigeria-africa/

Flutterwave Gets Fresh $35m to Expand Market Share
https://businesspost.ng/technology/flutterwave-gets-fresh-35m-to-expand-market-share/