₦airaland Forum

By Nneka Okumazie

So, a church wants to build a new building, they ask for donations and starts the project. The project hires laborers, purchases some local materials, and the work goes on – for months, or years.

The project creates demand, capital is exchanged and various values are created.

This process, common across sub-Saharan Africa, is remotely similar to what became known as the multiplier effect, proposed by a major economist of the twentieth century.

He said to induce the economy, government can borrow money to build infrastructure, in a process that will get many hired, materials purchased, taxes paid, and a project of progress made.

In a church project, the laborers could pay taxes directly – or indirectly when they buy retail products. The businesses that supply building materials pay taxes or levies to government. Some of the consultants on the projects also get paid – even if they maybe church members, charging at a discount. The major churches are often into this cycle.
ALSO READ Alhaji Ibrahim Chatta: Exit of a Monarch with a Sense of Obligation

Big churches rarely sit on cash for too long, they are often building, expanding, catering or maintaining. So, many businesses have been created in service of the needs of the church.

There are hundreds of products and services involved in maintenance of churches. The church is a major contributor to the gross domestic product, and to the gross national product – with online giving.

The economic benefits of the church to any nation outsizes whatever people complain about or criticize the church for. The church is not a business, but creates demand for businesses. The church does not stand in the way of any factory.
ALSO READ Mrs Nkechi Ikpeazu, Building Legacies Through Vicar Hope Foundation

If manufacturing stalls in a country because of policies, or other reasons, it is not the fault of the church. It is also a massive leader in local content, as well as in buy [made-in-a-country] project.

The church also makes it possible to also have architectures that are built to inspire. It is also the best psychological therapy that many know – in a world of difficulties.

There are people that became productive because the word of faith supercharged them for excellence in their careers, study or business.

The true church is also the truth teller, where members are told to avoid vices. Some people took heed, preventing trouble for them, others and society.
ALSO READ Why Nigerians Should Vote Ezekwesili as President in 2019

It is easy for people to continue to look for what to say against the church, but the amount of businesses that the church has indirectly created and demands from – is a boost to the economy.

[Exodus 38:22-23, And Bezaleel the son of Uri, the son of Hur, of the tribe of Judah, made all that the Lord commanded Moses. And with him [was] Aholiab, son of Ahisamach, of the tribe of Dan, an engraver, and a cunning workman, and an embroiderer in blue, and in purple, and in scarlet, and fine linen.]

https://businesspost.ng/featureoped/economic-contribution-of-churches-to-nigeria-africa/

By Dipo Olowookere

Co-founder of Jumia Group, Mr Jeremy Hodara, has announced Mr Massimiliano Spalazzi, as the new Chief Executive Officer of Jumia Nigeria.

Mr Massi, as he is fondly called, is taking over from Ms Juliet Anammah, who has piloted affairs of the e-commerce giant in Africa since early 2016 after she was appointed for the position in late 2015.

ALSO READ Employment Trust Fund: Lagos Warns Fraudsters
At a media parley in Lagos, Mr Hodara said Ms Anammah will be taking a new role at Jumia Africa and would also be the Chairwoman of Jumia Nigeria.

More details later

https://businesspost.ng/jobs/breaking-jumia-nigeria-gets-new-ceo/

Our cover for this week

By Adedapo Adesanya

Acting Director-General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, has said Nigeria was not utilising its full economic potential despite being able to accommodate a bigger and more attractive capital market.

Head of Corporate Communications of SEC, Mrs Efe Ebelo, quoted Ms Uduk as saying in a statement that the country’s capital market contributes less than 10 percent to the Gross Domestic Product (GDP).

She said Nigeria needs a larger capital market, pointing out that, “We think our economy is big enough to have a much bigger market.”

“The capital market makes up less than 10 percent of the GDP of the country. If you look at other countries, even South Africa, it is over 100 percent of GDP.
ALSO READ CBN Pays N2.1trn Interest on N22.350trn OMO Bills in 2018

“We believe we have a large room for expansion and that is what we are pursuing,” the capital market expert said.

Giving an update on the electronic filing system that will ensure efficiency, account for unclaimed dividends and curb any foul play in the capital market, Ms Uduk said the commission was working hard to ensure its met its planned commencement.

The SEC chief said the regulatory body was also in the process of deploying software that would help to actualise the plan, saying, “That will make filing more efficient, easier for capital market operators to send in returns to us and make the market more transparent”.
ALSO READ Future Energy Nigeria Holds November in Lagos

Ms Uduk said the commission was excited about electronic offering and was in support hence the need to develop the rules to guide its implementation, noting that, “We believe that electronic offerings will help solve the problems of unclaimed dividends so it is something we are backing seriously.”

“Through electronic offerings, we will not have the problems of identity as we had in previous listings. It has a lot of advantages; it means that people who are not close by during an offering can invest.
ALSO READ Investment Opportunities in Commercial Papers

“We will be able to get the data we need for regulation; the offering is more efficient and it is cost saving. It is something we are working on; the rules will soon be out for everyone to use,’’ she said.

https://businesspost.ng/economy/nigerias-capital-market-contributes-less-than-10-to-gdp-sec-dg/

By Modupe Gbadeyanka

For the first time in three months, the external reserves of Nigeria recorded a weekly rise last week, closing at $38.32 billion as at Thursday, January 16, 2020, which was the last update on the website of the Central Bank of Nigeria (CBN).

Data obtained from the CBN platform by Business Post on Monday revealed that the foreign reserves balance increased by 0.08 percent or $30 million from the $38.29 billion it settled the previous week.

Last week, Business Post reported how observers were expressing growing concerns over the rate the country’s reserves were depleting, nursing fears that the monetary policy makers may have to devalue the Naira.
ALSO READ Nigeria’s Foreign Reserves Drop To $24.21b

This week, the Monetary Policy Committee (MPC) will hold its first meeting for this year in Abuja. The two-day event was earlier scheduled to commence today, but was shifted to Thursday and Friday.

After the meeting on Friday, Governor of the CBN, Mr Godwin Emefiele, will address the media on outcome of the deliberations and some analysts have predicted that the benchmark interest rate would be retained at 13.50 percent.

The reserves of Nigeria have been a major cause of worry for observers because of the way the central bank takes from the balance to defend the local currency at the foreign exchange (forex) market.
ALSO READ Our Role in Nigeria’s Exit From Recession—Senate

Many have argued that the interventions are not sustainable especially because of recent decline in the price of crude oil at the global market. The black gold remains the main source of foreign earnings for Nigeria, which is Africa’s largest economy.

In 2016, the country slipped into a recession as a result of drop in the price of crude oil as well as sharp fall in the volume of local production caused by attacks on oil facilities in the Niger Delta region.

It took several meetings with critical stakeholders in the oil-rich region, including militants carrying out the attacks, to stop the disruption of production of oil, which helped the nation exit economic crisis a year later.
ALSO READ Nigeria’s External Reserves Drain to $30.49b

However, since the level of output increased, the external reserves have struggled to continue an upward movement, falling from over $45 billion to its present level.

In the first week of 2020, the balance left on the reserves was $38.49 billion but dropped to $38.29 billion at the close of the second week, before rising to $38,32 billion last week, which was the third of the year.

https://businesspost.ng/economy/nigerias-external-reserves-rise-first-time-in-three-months/

T-Bills Investors to Demand Higher Rate Amid Rising Inflation
**As N106bn Bond Coupon Payments Impact System Liquidity
https://businesspost.ng/economy/t-bills-investors-to-demand-higher-rate-amid-rising-inflation/

NASD Unlisted Securities Market Records 909% Rise in Trading Volume
https://businesspost.ng/economy/nasd-unlisted-securities-market-records-909-rise-in-trading-volume/

13 Stocks Keep Local Bourse Bullish by 0.91%
https://businesspost.ng/economy/13-stocks-keep-local-bourse-bullish-by-0-91/

T-Bills Investors to Demand Higher Rate Amid Rising Inflation
**As N106bn Bond Coupon Payments Impact System Liquidity
https://businesspost.ng/economy/t-bills-investors-to-demand-higher-rate-amid-rising-inflation/

Who Pays Tenement Rates? A Lawyer's Viewpoint
https://businesspost.ng/featureoped/pays-tenement-rates/

ShoProperties:
I am Planning of Renting a new house in Lekki but to my best surprise after filling the Tenancy form and all , The lawyer asked me do undertaking that I will be the one to pay any form of tax incurred during my stay in the House Be it tenement rate , Land Use

I told him have never heard of such and he said then I’m not ready to take the house


Please enlighten me who is to Pay

Tenant Or Landlord

Union Bank Sells N20bn Commercial Paper to Pension Managers, Others
https://businesspost.ng/banking/union-bank-sells-n20bn-commercial-paper-to-pension-managers-others/

Naira Gains at I&E, Loses at BDC, Trades Flat at Interbank, Black Markets
https://businesspost.ng/economy/naira-gains-at-ie-loses-at-bdc-trades-flat-at-interbank-black-markets/

Oil Extends Rally as OPEC Assures Positive Demand Growth
https://businesspost.ng/economy/oil-extends-rally-as-opec-assures-positive-demand-growth/

By Dipo Olowookere

The Debt Management Office (DMO) on Friday said Nigerian government was considering taking loan from foreign sources to fund the 2020 budget signed into law by President Muhammadu Buhari a month ago.

On December 17, 2019, Mr Buhari, who travelled to the United Kingdom today for an investment summit starting next Monday, signed the 2020 Appropriation Bill into law. His government proposed to spend N10.33 trillion in this fiscal year, which kicked off on January 1.

In a chat with newsmen today, Director General of DMO, Ms Patience Oniha, said the President Buhari administration was planning new borrowings of N1.60 trillion, with N850 billon (about $2.8 billion at an exchange rate of N306/$1) and N744.99 billion for external and domestic loans respectively.
ALSO READ Ogun Unveils 13-Year Economic Development Plan

She noted that the foreign loans would come mainly from concessionary and semi concessionary sources due to the lower interest rate and longer tenors, adding that, “Any shortfall thereafter may be raised from commercial sources.”

The debt office noted that in the 2019 budget, a provision was made for an external borrowing of N802.82 ($2.62 billion), but this was never pursued due to late passage of the appropriation act.
ALSO READ DMO's Strategies to Reduce Interest Expense Working—FSDH

“The 2019 Appropriation Act provided for a total new borrowing of N1.61 trillion split equally between domestic and external, only the domestic component of N802.82 billion was raised due to the late passage of the 2019 Appropriation Act and the expectation that the implementation of the 2020 budget would commence on January 1, 2020,” the DMO said.

However, there are indications that the external borrowing will be done.

The debt office also said last year, the ratio of domestic debt to external debt stood at 69:31 as at September 2019, an improvement over the 71:29 as at September 2018 compared with the target of 60:40 in the Medium-Term Debt Management Strategy.
ALSO READ N425b T-Bills Mature This Week as CBN Offers N181b via PMA

It also said the ratio of long term to short term debt in the domestic debt as at September 2019 was 80:20, which shows that the target of 75:25 had been outperformed by September 2019, an improvement over the ratio of 73:23 recorded in September 2018.

https://businesspost.ng/economy/nigeria-considers-2-8bn-external-loan-for-2020-budget/

Kenya Gives Access Bank Nod to Buy Transnational Bank
https://businesspost.ng/banking/kenya-gives-access-bank-nod-to-buy-transnational-bank/

Ecobank to Raise Loan Portfolio to Farmers by N70bn
https://businesspost.ng/banking/ecobank-to-raise-loan-portfolio-to-farmers-by-n70bn/

Flour Mills Seeks SEC Consent for N20bn Bond to Refinance Debt
https://businesspost.ng/economy/flour-mills-seeks-sec-consent-for-n20bn-bond-to-refinance-debt/

Details of How to Start A Profitable Beer Parlour Business in Nigeria
https://businesspost.ng/economy/details-of-how-to-start-a-profitable-beer-parlour-business-in-nigeria/

Standard Bank Sponsors UK-Africa Investment Summit
https://businesspost.ng/world/standard-bank-sponsors-uk-africa-investment-summit/

Nigeria’s Inflation Rises to 11.98% in December 2019
https://businesspost.ng/economy/nigerias-inflation-rises-to-11-98-in-december-2019/

Investors Sustain Hunger for Long-Term OMO Bill as Rate Drops
https://businesspost.ng/economy/investors-sustain-hunger-for-long-term-omo-bill-as-rate-drops/

Investors Sustain Hunger for Long-Term OMO Bill as Rate Drops
https://businesspost.ng/economy/investors-sustain-hunger-for-long-term-omo-bill-as-rate-drops/

BREAKING: New 7.5% VAT Takes Effect February 1--FG
https://businesspost.ng/economy/new-7-5-vat-takes-effect-february-1-fg/

GTBank, 9 Others to Lend Investors 20.8 million Shares
https://businesspost.ng/economy/gtbank-9-others-to-lend-investors-20-8-million-shares/

Buhari for UK-Africa Investment Summit, to Meet Boris Johnson
https://businesspost.ng/economy/buhari-for-uk-africa-investment-summit-to-meet-boris-johnson/

Nigeria, Ghana, Others Reject Renaming of CFA to ECO
https://businesspost.ng/economy/nigeria-ghana-others-reject-renaming-of-cfa-to-eco/

Buhari Picks IMF Director Obiora as CBN Deputy Governor
https://businesspost.ng/jobs/buhari-picks-imf-director-obiora-as-cbn-deputy-governor/

CBN Reschedules First MPC for 2020
https://businesspost.ng/economy/cbn-reschedules-first-mpc-for-2020/

Nigeria, Turkey to Improve Bilateral Trade Volume
https://businesspost.ng/economy/nigeria-turkey-to-improve-bilateral-trade-volume/

By Modupe Gbadeyanka

The federal government of Nigeria has said the commencement of the implementation of the new Value Added Tax (VAT), 7.5 percent, is to take effect from February 1, 2020, after all the necessary administrative procedures have been completed, especially the Gazette of the recently signed 2019 Finance Act by the Federal Ministry of Justice.

This development was confirmed by the Minister for Finance, Budget and National Planning, Mrs Zainab Ahmed, via a statement issued on Thursday, January 16, 2020, by her Special Adviser, Media and Communication, Mr Yunusa Tanko Abdullahi, and obtained by Business Post.

Recall the VAT increase, which is meant to help government achieve its revenue projections for the 2020 Budget (N8.155 trillion), is a part of the tax reforms included in the 2019 Finance Act. With the Act, there will be more revenue to finance key government projects especially in the areas of health, education and critical infrastructure.

Among the Finance Act strategic objectives is the supporting of micro, small and medium Enterprises (MSMEs) in line with the ease of doing business reforms such as VAT threshold.

Also recall that the Finance Act also takes care of essential palliatives to support MSMEs and mitigate the impact of the VAT rate increase on the most vulnerable businesses, communities and citizens in the economy.

Some of these measures include expanding the list of VAT-exempt items (e.g. basic food items, educational materials and medical supplies); Introducing a VAT registration threshold for MSMEs with a turnover of less than N25 million per annum; Reducing the corporate tax rate for MSMEs from 30 percent to 20 percent for Small firms (with turnover of between N25million and N100 million per annum.); and exempting micro-firms (with turnover of less than N25 million per annum) from payment of CIT

Mrs Ahmed had earlier said that, “We planned that, going forward, the annual budget will always be accompanied by Finance Bills to enable the realisation of revenue projections.

“Future Finance Bills will therefore also provide us with additional opportunities to incrementally improve the fiscal policy and regulatory/legal environment in order to further strengthen our domestic capital market, and ultimately ensure sustained and inclusive growth and development.”

On Monday, President Muhammadu Buhari signed the Finance Bill into law after it was passed in December 2019 by the National Assembly. Normally, once a bill is signed into law, it takes effect immediately, but there are certain administrative procedures and formalities to be finalised before commencement, including gazetting it, which has now been done by federal government.

https://businesspost.ng/economy/new-7-5-vat-takes-effect-february-1-fg/

CBN Trims Treasury Bills Rate to 2.95% as Demand Rises
https://businesspost.ng/economy/cbn-trims-treasury-bills-rate-to-2-95-as-demand-rises/

SEC, ICPC to Track Stolen Funds Invested in Capital Market
https://businesspost.ng/economy/sec-icpc-to-track-stolen-funds-invested-in-capital-market/

Naira Records Mixed Performance at Forex Market
https://businesspost.ng/economy/naira-records-mixed-performance-at-forex-market/

Oil Falls After US, China Sign Trade Deal
https://businesspost.ng/economy/oil-falls-after-us-china-sign-trade-deal/

Persistent Profit Taking Drops NSE Market Cap Below N15trn
https://businesspost.ng/economy/persistent-profit-taking-drops-nse-market-cap-below-n15trn/

CBN Trims Treasury Bills Rate to 2.95% as Demand Rises
https://businesspost.ng/economy/cbn-trims-treasury-bills-rate-to-2-95-as-demand-rises/

Gtbank Slashes Loan Interest Rate to 1.33% For Customers
https://businesspost.ng/banking/gtbank-offers-loans-to-customers-at-1-33/

Nigeria to Borrow N510bn via Bond Sale in Q1 2020
https://businesspost.ng/economy/nigeria-to-borrow-n510bn-via-bond-sale-in-q1-2020/

Access Bank Awaits Regulatory, Shareholders Approvals to Begin Operations in Cameroon
https://businesspost.ng/banking/access-bank-awaits-regulatory-shareholders-approvals-to-begin-operations-in-cameroon/

Nigerian Breweries, 22 Others Lead Market to First 2020 Loss
https://businesspost.ng/economy/nigerian-breweries-22-others-lead-stock-market-to-first-2020-loss/

NDEP Emerges Most Active Stock on NASD Exchange Tuesday
https://businesspost.ng/economy/ndep-emerges-most-active-stock-on-nasd-exchange-tuesday/

Naira Trades N480/£ at Parallel Market After N5 Loss Tuesday
https://businesspost.ng/economy/naira-trades-n480-at-parallel-market-after-n5-loss-tuesday/

Crude Oil Rises on Trade Deal Signing Expectations
https://businesspost.ng/economy/crude-oil-rises-on-trade-deal-signing-expectations/

Champion Breweries Picks New MD Polymenakos from Coca-Cola
https://businesspost.ng/jobs/polymenakos-becomes-champion-breweries-managing-director/

Fountain University Names Jaiz Bank Chairman as Chancellor
https://businesspost.ng/education/fountain-university-names-jaiz-bank-chairman-as-chancellor/

Entrepreneurs Create 85% of Jobs in Nigeria—US
https://businesspost.ng/general/entrepreneurs-create-85-of-jobs-in-nigeria-us/

FG to Announce Finance Bill Implementation Date Soon
https://businesspost.ng/economy/fg-to-announce-finance-bill-implementation-date-soon/

By Modupe Gbadeyanka

In its determination to grow the nation’s economy and make funds available to its customers to meet their business needs, Guaranty Trust Bank (GTBank) Plc has announced a reduction in the interest rate for a set of credit facility it offers.

The lender, in a notice to its customers on Tuesday, said it has reduced the interest rate for the loan obtained under its QuickCredit package to 1.33 percent monthly from the previous 1.75 percent.

According to the financial institution reputed to support retail businesses, especially those in the Micro, Small & Medium Enterprises (MSME) sector, the new interest rate was derived from 16 percent per annum.

In the notice sighted by Business Post, GTBank stated that customers who wish to apply for the Quick Credit loan offering should “simply dial *737*51*51#.”
ALSO READ N4.6bn Debt: Ecobank Takes Over Power Firm

“We are pleased to inform you that the interest rate on QuickCredit is now 1.33% monthly. This means that the effective interest rate on Quick Credit is now 16% per annum,” it said.

Last year, the Central Bank of Nigeria (CBN), which regulates the banking sector in the country, pushed banks to offer loans to their customers, giving them the percent of their deposits that should be given out to support the economy.

In July 2019, the CBN gave banks in the country till September 30, 2019 to increase their loan to deposit ratio 60 percent and after the expiration, 12 lenders were fined nearly N500 billion.
ALSO READ Ohiwerei Returns Keystone Bank Back to Profitability With N5.9b PBT

According to the CBN, the 12 affected lenders had their fines deducted from their Cash Reserve Requirement (CRR) domiciled with it (CBN). The CRR is a portion of the banks’ deposits kept with the CBN for regulatory reasons.

After the first deadline elapsed, the apex bank raised the LDR to 65 percent and gave all the banks till December 31, 2019 to meet up or be fined.

“All DMBs are required to attain a minimum LDR of 65 percent by December 31, 2019 and this ratio shall be subject to quarterly review to encourage SMEs, retail, mortgage and consumer lending, these sectors shall be assigned a weight of 150 percent computing the LDR for this purpose,” a circular from the CBN had said.
ALSO READ Access Bank Picks 4 CBN Sustainability Awards

This year, the central bank has retained the LDR at 65 percent after the expiration of the second deadline last month, saying it has noticed remarkable increase in the size of gross credit by deposit money banks (DMBs) to customers.

“Accordingly, the CBN has decided to retain the minimum 65 percent LDR in the interim. All DMBs are required to maintain this level and are further advised that average daily figures are to be applied to assess compliance going forward,” the apex bank said.

However, it stressed that, “DMBs (Deposit Money Banks) are further encouraged to maintain strong risk management practices regarding their lending operations.”

https://businesspost.ng/banking/gtbank-offers-loans-to-customers-at-1-33/

By Dipo Olowookere

**May Drop to $37bn in Few Days' Time

**Shed $4.5bn in 2019, $306m So Far in 2020

**Dangote Fears Devaluation Imminent

**No Cause for Alarm—CBN

Though the Central Bank of Nigeria (CBN) has said Nigerians should not panic over the gradual decline in the foreign reserves, observers have cautioned both the fiscal and monetary authorities not sleep with their eyes closed because it might spell doom for the country.

This is because if the depletion of the reserves continues with the steady fall, the nation, which is Africa’s largest economy, may fall into another recession under the administration of President Muhammadu Buhari.

During his first term in office as a civilian leader of the country, just after a year he was sworn into office in 2015, Nigeria went into an economic recession. However, a year later, 2017, Mr Buhari and his team led the nation out of the crisis.

One of the main reasons for sliding into recession was a decline in the price of crude oil at the global market coupled with decline in the volume of the commodity produced.

The period was when restive Niger-Delta youth were attacking oil facilities in the oil-rich region, making it difficult for Nigeria to meet its daily production, resulting into lesser revenue from the sale of crude oil, the country’s main source of foreign earnings.

But when federal government held meetings with stakeholders from that part of the country, the attacks reduced and Nigeria started producing up to 1.7 million barrels per day, resulting into more money.

In 2019, the average price of crude oil at the international market was around $59 per barrel, while the benchmark for the country’s budget was $55 per barrel. This year, the benchmark was put at $60 and the price has remained around $63 to $65.

But despite the excess recorded from the sale of crude oil last year, the external reserves have been reducing, making some observers to raise concerns, urging the central bank to do something fast to prevent a devaluation of the Naira, which the present government does not support.

Business Post reports that the apex bank has been taking from the reserves to support the local currency, making it stable around N360 per Dollar at most of the various segments of the foreign exchange market.

For example, at the beginning of a new week, the CBN regularly releases the sum of $210 million to the forex market, with wholesale sector normally getting $100 million, the Small and Medium Enterprises (SMEs) and the invisible segments receiving $55 million each. At the end of the week, it also injects over $200 million into the Retail Secondary Market Intervention Sales (SMIS).

These interventions have contributed to the decline in the country’s reserves and the central bank has promised not to stop defending the Naira so as to avert currency speculations, which pushed the local currency exchange rate to over N500 to a Dollar over three years ago.

According to data obtained by Business Post from CBN, Nigeria’s external reserves have dropped about $306.1 million since the beginning of this year to $38.3 billion as at Friday, January 10, 2020.

In 2019 alone, the reserves depleted by $4.5 billion, depreciating to $38.6 billion at December 31 from $43.1 billion at January 2, 2019.

In November 2019, Business Post reported that Governor of the CBN, Mr Godwin Emefiele, told some potential investors in London, United Kingdom, that the devaluation of Naira would only be possible if the nation’s external reserves go below $30 billion and the international price of crude oil drops to $45 per barrel.

In 2017, President of Association of Bureau de Change Operators of Nigeria (ABCON), Mr Aminu Gwadabe, said Mr Emefiele assured his members that the bank had no intention to devalue the Naira.

But Africa’s richest man, Mr Aliko Dangote, is already planning ahead of a possible devaluation of the Nigerian Naira by the CBN.

He recently told Mr David Rubenstein of Bloomberg TV that in order not to be caught off guard, he was considering getting an office space in New York, United States of America, to protect the wealth of the family, expressing concerns that a devaluation of the currency may weaken his local investments.

“In Africa, you know we have issues of devaluation, so we want to really preserve some of the family’s wealth,” Mr Dangote, 62, was quoted as saying on the David Rubenstein programme, noting that the office space in New York will help to diversify his business and avoid the risk of currency fluctuations on his home continent.

https://businesspost.ng/economy/concerns-grow-as-nigerias-foreign-reserves-decrease-to-38-3bn/

Stocks You Can Buy, Sell, Retain This Week
https://businesspost.ng/economy/stocks-you-can-buy-sell-retain-this-week/

Shareholders Exit Access Bank Amid GMD Arrest Rumour
https://businesspost.ng/banking/shareholders-exit-access-bank-amid-gmd-arrest-rumour/

BUA Cement Share Price Records First Loss on NSE
https://businesspost.ng/economy/bua-cement-share-price-records-first-loss-on-nse/

Bulls Tighten Grip on NSE as Index Rises 0.74%
https://businesspost.ng/economy/bulls-tighten-grip-on-nse-as-index-rises-0-74/

Brent Slips Below $65 as WTI Sells at $58 Per Barrel
https://businesspost.ng/economy/brent-slips-below-65-as-wti-sells-at-58-per-barrel/

Naira Sustains Gain Against Dollar at Investors FX Window
https://businesspost.ng/economy/naira-sustains-gain-against-dollar-at-investors-fx-window/

Keystone Bank: Promoting Workplace Culture, Engagement, Productivity
https://businesspost.ng/banking/keystone-bank-promoting-workplace-culture-engagement-productivity/

By Modupe Gbadeyanka

A total of 85.5 billion shares worth N1.4 trillion were transacted by 10 stockbroking companies in Nigeria last year, data from the Nigerian Stock Exchange (NSE) has indicated.

The equities were traded by the prominent brokerage firms from January to December 2019, with Stanbic IBTC Stockbrokers Limited emerging as the most active both by volume and value of the transactions.

The league of 10 biggest brokers on NSE contributed 53.84 percent to the total volume of shares transacted at the nation's bourse in the year under review and 70.14 percent of the total value.

An analysis by Business Post showed that by volume, Stanbic IBTC Stockbrokers traded 13.9 billion units accounting for 8.75 percent of the total volume of shares, while Qualinvest Capital recorded 12.4 billion units (7.81 percent).

RenCap Securities traded 9.1 billion shares (5.74 percent), EFG Hermes Nigeria exchanged 8.8 billion equities (5.52 percent), CSL Stockbrokers sold 7.8 billion stocks (4.91 percent), while Cardinalstone Securities traded 7.5 billion shares (4.75 percent).

In addition, Greenwich Trust transacted 7.5 billion stocks (4.74 percent), Morgan Capital Securities traded 6.8 billion equities (4.30 percent), Chapel Hill Denham Securities transacted 6.8 billion shares (4.28 percent), while FBN Quest Securities exchanged 4.8 billion stocks (3.04 percent).

By value, Stanbic IBTC Stockbrokers traded shares worth N337.0 billion accounting for 17.49 percent of the total traded value, while RenCap Securities trailed with N239.4 billion contributing 12.42 percent.

EFG Hermes Nigeria sold N188.6 billion stocks (9.79 percent), CSL Stockbrokers exchanged N119.5 billion shares (6.20 percent), Tellimer Capital traded N103.7 billion worth of stocks (5.38 percent), while Chapel Hill Denham transacted N83.1 billion equities (4.31 percent).

Furthermore, APT Securities and Funds traded N77.6 billion shares (4.03 percent), FBN Quest Securities exchanged N72.2 billion (3.75 percent), Coronation Securities transacted N66.5 billion equities (3.45 percent), while Meristem Stockbrokers traded N64.0 billion stocks (3.32 percent).

https://businesspost.ng/economy/10-stockbroking-firms-trade-85-5bn-shares-worth-n1-4trn-in-2019/

By Adedapo Adesanya

On Friday, January 3, 2020 the United States president, Mr Donald Trump, ordered an airstrike, which killed top Iranian General, Mr Qassem Soleimani, the head of Iran’s elite Quds military force and one of the most powerful figures in the country.

This spurred hike in oil prices as Brent crude oil futures, the global benchmark, coursed more than 4 percent, while the West Texas Intermediate (WTI) crude oil jumped more than 3 percent due to the escalation of the geopolitical tensions between the U.S. and Iran.

For a country like Nigeria, whose mainstay is oil, this development turned out to be a blessing because global events, which badly affect prices oil, have always been a major source of worry for government due to low revenues generated from the sale of the black gold.

But with the ongoing tensions from the assassination of the Iranian military chief, more money would continued to be raked from the sale of crude oil at higher prices.
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In fact, Nigeria will like prices of oil to continue to trend higher at the global market because in the 2020 budget, the benchmark for crude oil was pegged at $60 per barrel.

Since last Friday, when the unmanned US drone attacked Mr Soleimani, prices have hovered around $70 (on Friday, January 3), $69 dollars over the weekend, and as the time of this report at $68 per barrel. This means prices are still in a safe net for the country.

By estimates, Nigeria produces over 1.5 million barrels of oil per day and at with an average increase of $69 per barrel since Friday, according to analysis by Business Post, the country has raked over $400 million so far from the sale of the commodity.

However, analysts have noted that a further escalation of the Mideast tensions could drive prices up as Iran’s Supreme Leader Ayatollah Ali Khamenei has vowed to inflict “severe retaliation” on those involved in Mr Soleimani’s death, and following this, the United States has also strengthened its military presence in and around the region.
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A retaliation means that oil will rise with analysts saying that Iran’s could initiate attacks on oil tankers in the Persian Gulf, as it did in 2019 with a British tanker and a number of drones. This would provide support for oil prices but would be not hold on for much longer.

A bigger occurrence would be an attack on oil infrastructure of US allies in the Persian Gulf such as the September strikes on Saudi oil infrastructure, which led to a loss of 5.7 million barrels per day of oil production capacity when Iranian-backed Houthi rebels attacked the facilities.

The biggest would be if Iran closed off the Strait of Hormuz, which serves as a passageway for a major portion of the oil supply. Such an action would limit access to Asian markets where China, India, Japan and South Korea, some of the largest consumers are located.
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However, even with the possible rise, oil prices face huge pressure from non-OPEC supplier like the United States, Brazil, and Norway, who would want to increase their output and eventually crash prices or lead the market to an oversupply which the OPEC and its allies – which includes Nigeria took a decision to curb by reducing oil production by 1.7 million barrels per day to help prices and stop oil glut this year.

But whichever way, Nigeria will continue to cash in on the crisis and use the opportunity to shore up its external reserves, which have depleted in recent times due to low prices of crude oil.

https://businesspost.ng/economy/what-nigeria-gains-from-us-iran-crisis/

By Modupe Gbadeyanka

**South Africa to Experience Boom

Abuja-based cleric, Prophet Joshua Iginla, has predicted that Nigeria’s economy will suffer setbacks in 2020. The seer made this disclosure in his New Year 44 prophetic release made available to Business Post on Sunday.

Prophet Iginla, who is one of the leading prophetic voices in the country, said in the message that he sees “a lot of hardship,” noting that, “It will take God’s intervention to see what we desire to see.”

The Shepherd in charge of Champions Royal Assembly, who is noted for his accurate predictions in the past, also strongly warned local authorities on the issue of Biafra agitation, which he said if not handled carefully, could cause huge international embarrassment for the country.

Below are his 44 prophetic release.

1) The government of the day will do her best to see how to improve the life of the common man, but I see a lot of battles.

2) The economy will suffer a lot of setbacks. I am not a prophet of doom, but I see a lot of hardship. It will take God’s intervention to see what we desire to see.

3) God’s hand is upon Nigeria. We are passing through a process and we are still in incubation period. It will take time for us to see that which we desire as a nation.

4) We have to pray because of what I saw. I hope we don’t experience a reoccurrence of what we have been delivered from in the past.

5) I see another kind of terrorism that is not good and it’s coming from the region we least expect in this county.

6) We have to pray for the security of families and lives in 2020. What I mean is a resurface of other kinds of attacks that are not too good. The God that we serve will deliver us in Jesus name.

7) I see a mighty protest that will erupt this year from an angle we least expect. It’s going to be very strong. It’s a massive protest and I see a counter protest to this massive protest. We have to pray strongly that God in his infinite mercy should help and keep Nigeria safe in the midst of these storms.

The government of the day will try all her best to handle a lot of things, but we have to pray for our leaders for them not to be overwhelmed by these battles.

9) We have to pray for a serving Governor to complete his tenure because of a health issue he is currently battling with.
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10a) I am not a prophet of doom, but I must tell you the truth. We have not seen the end of the Biafra agitation. This year, it will take another turn and continue to grow like that.

10b) Still on the Biafra movement, it would not die. From 2020 to 2022, we will see a dimension that will be very strategic. A lot of you will ask me why is he always talking about Biafra. It’s because of what I am seeing. It won’t die at all. This battle will carry another dimension internationally and not locally and the young man at the centre of this thing will wax stronger with international presence. I see other people putting hands on his shoulder. If we don’t pray and do the needful with our Igbo brothers, there is going to be a time that things will fall apart. The only way to solve this is to do justice. I see a strong strategic battle so that a nation will not come out of a nation. I saw a wild lion and many other lions with the same features around him. Those in government should pray very well. There is going to be a lot of international embarrassment for Governors, Ministers, Senators and others. Some clothes will be torn and some beaten, it’s going to be bad. Let’s just pray and do the needful.

11) I see a nation coming out of a nation. I don’t know when and I don’t know how. We have to pray for the unity of this country.

12) There is going to be a time that even the military and police will not be able to stop the anger of some people. I pray that wisdom will be given to the government of the day to handle some situations and the grievances of some people in the part of this country.

13) The body of Christ in Nigeria will see an extreme tremendous and painful persecutions. It will come from quarters that we least expect. Brothers will betray brothers. In the midst of this storm, we pray for the body of Christ in Nigeria to be one in Jesus name.

14) Before the end of the tenure of this ruling party, there is going to be disaffection, disunity and I see a party splitting out of a party.

15) I see power brokers not being able to hold themselves because of ambitions. It’s going to be very tough.

16) This year is the year that the political seed of confusion will be petted. We have to pray for those great leaders that we have. In this nation to have a single mind as we run.
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Is there hope for Nigeria? Yes!

17) I see a new Nigeria rising up but it’s going to be in God’s own way.

18) Political grandfathers will not be able to ascertain or solve the puzzle of Nigeria.

19) In the midst of this year and next year, we will know our bearing and many confused politicians will see the light and know that this is the hand of God. People will know that God loves Nigeria and not a man that loves Nigeria.

20) Nigeria should pray about the airspace because of unpleasant attack.

GHANA

21) Top politicians in Ghana will face a lot of battles.

22) That is, many of them will go to jail.

23) There will be a lot of trials for the President of Ghana. He has to be very careful because I see some expensive mistakes that might come from some cabals who are loyal to him and that can be an expensive media attack so that they don’t truncate his second term ambition.

24) The former president of Ghana, I foresee an attack and I pray the Lord will deliver him from that. I meant an attack and it’s not even spiritual but physical before the election. We should pray to avert this and I declared it will be averted in Jesus name.

25) Thus, we will be fasting for that between January 8 and 9, 2020.

26) Togo re-election! I see an election that will come and the opposition will not be satisfied with, but it will be peaceful. It’s the after effect of the election we should pray about.

27) The person sitting on the throne will still be there. The other private things, I have already said that to him.

28) Let’s us pray because I see a lot of confusion after the election. We have to pray for the nation of Togo. All my concern is peace.

29) South Africa is going to experience a boom in their economy.

30) And there is going to be a lot of downpour this year.

31) And there is going to be restoration of lost glory when it comes to issues of legacies that have been laid down by ruling forefathers.

32) I see a lot of restoration that will come.

33) South Africa will experience boom of prosperity but there will still be xenophobic attack. We pray it will not resurface again this year in Jesus name.
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34) We have to pray for peace for Malawi.

35) We should pray not to have a rerun in their election.

36) I see a lot of battles after the court declaration which we have to pray about.

37) Malawi is God’s own nation and the hand of God is upon that nation. The truth is Malawi is about to experience a new dispensation of glory and there is no mortal man that can stop it. But before that, I see a lot that we have to pray about and Malawians have to pray. We prophesy peace even after the court declaration in Jesus name.

38) The great president of Gabon should be careful because there are lots of people around him who wish him dead. He meant well for the nation of Gabon. We have to pray for him.

39) I have set forth the 3rd and 4th of January, 2020 for fasting and prayer for him. God will preserve him but we have to pray for him strongly. I see the candle light burning but God will keep him.

40) The nation of Kenya has to pray very well in terms of their security. I see mischievous people with mischievous plan trying to cause bomb blasts at sensitive places. We will put that in prayer from 10th-11th of January 2020.

41) There is going to be a strong protest in the nation of Cameroon against the leadership and this can be very bad. I saw an aggression that can cause a blood bath. It’s not a conventional protest but a very strong one. I am not a prophet of doom. God revealed to redeem. We are praying that this should be reversed in Jesus name.

42) President Trump will go through all the saga. It will be tough but he will come out of it and it will make him very popular.

43) The ruling party in Ghana should not underestimate the former president contesting on the platform of opposition. There is a star on his head.

44) Zambia. I see the economy of Zambia growing stronger and better than it has ever experienced. You can call it a miracle or wonder but it will further make the president popular. I see a strong spiritual revival that will move through the land because of the cry of the brethren.

https://businesspost.ng/general/nigerias-economy-will-suffer-setbacks-in-2020-prophet-iginla/

By Modupe Gbadeyanka

**Promotes 5,000, Recruits 4,000

The management of United Bank for Africa (UBA) Plc has approved salary upgrades for its employees with immediate effect this January.

A statement issued by the financial institution stated that beneficiaries of this exercise, over 5,000, will receive up to 170 percent increase in their salaries and benefits, whilst a good number have been moved to higher grade levels.

The Group Managing Director/Chief Executive Officer of UBA, Mr Kennedy Uzoka, who announced the bank’s new staff improvement initiatives to the excited employees, noted that the bank was continually seeking new ways to improve the fortunes of its staff as they are the backbone of the organisation.

“As a leading financial institution, we do not take issues relating to our staff lightly. We take great pride in being a listening bank that has the ears of our employees as they turn the wheels which make the organisation successful for our customers and shareholders. UBA recruits highly talented staff who perform at the best standards and deserve to be remunerated accordingly,” Mr Uzoka said in a bank-wide live broadcast to workers of the organisation.

In a carefully planned restructuring embarked upon by the bank in the last quarter of 2019, UBA has transformed its grading system and processes to become one of the most competitive within the industry.

The bank crashed its grade levels to 12 levels from entry level to the top of the pyramid, where previously it had been 16 levels.

This means that staff will now find it much easier to attain top leadership management positions at UBA as their careers progress much faster.

It further recruited over 4000 new staff members, who resumed in the last week of December 2019, becoming the highest employer of labour amongst Nigerian banks with a staff strength of close to 20,000.

“We have also taken steps to ensure that our bank remains at the top tier as it relates to talent pool. We want to train the best and we have crashed the grade structure to make it easier and faster for our employees to progress along their careers.

“With this new grade structure, it will be possible for a new graduate employed at UBA to rapidly chart their own careers and become GMD by the age of 36,” the GMD/CEO further said in the broadcast.

UBA is one of Africa’s leading banks with operations in 20 African countries. The bank also has presence in the global financial centres of London, New York and Paris. UBA provides banking services to more than 17 million customers globally, through diverse channels.

https://businesspost.ng/jobs/excitement-as-uba-increases-staff-salaries-by-170/

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By Modupe Gbadeyanka

Africa’s biggest mobile phone operator, MTN Group, has said it plans to sell its stakes in Ghana and Uganda in order to concentrate on its high-growth markets in Africa, especially Nigeria, and in the Middle East.

MTN Group listed its shares on the Ghana Stock Exchange (GSE) in 2018, while in Uganda, it had been speculated that it was planning to join the Uganda Securities Exchange.

The firm has one of its biggest markets in Nigeria, with the country, being the largest economy on the continent, contributing a large chunk to its overall turnover over the years.

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The telecommunications giant only listed its Nigerian business on the Nigerian Stock Exchange (NSE) in May 2019 after years of foot dragging it.

According to a report by Reuters, MTN Group is selling its 49 percent holdings in Ghana Tower Interco B.V. and Uganda Tower Interco B.V. to AT Sher Netherlands Coöperatief U.A. for $523 million.

The company explained that it wants to shed loss-making e-commerce assets and exit countries where it has no prospect of reaching the top-two spots in terms of market share, unlike in Nigeria, where it is the market leader.

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The sale is expected to close in Q1 2020 and gives MTN Group, which has its base in South Africa, with a profit of six billion rands ($425.74 million).

In a statement, the company said, “We remain focused on continuing to execute on the important strategic priorities of reducing debt, simplifying the portfolio and reducing risk.’’

On Thursday, MTN Nigeria informed local investing community that it has finalised the redemption of MTN Nigeria preference shares, raising $315 million, with proceeds to be used to pay down its Dollar-denominated debt and for general corporate purposes.

https://businesspost.ng/economy/mtn-quits-ghana-uganda-for-high-growth-markets/

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By Dipo Olowookere

It has been revealed that the net worth of Africa’s richest man, Mr Aliko Dangote, grew to $14.8 billion in 2019 after raking the sum of $4.3 billion from his various investments during the year.

Business Post gathered that the industrialist increased on the back of investments in cement, flour and sugar, with more expected to come from his foray into the oil and gas industry.

The billionaire businessman is close to completing one of the world’s largest oil refineries in Lagos, Nigeria. The plant has the capacity to meet more than the country’s entire fuel consumption and could transform an economy that currently imports all its refined product needs. Mr Dangote is also constructing a fertilizer factory on the same site.
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According to the Bloomberg Billionaires Index, the 62-year-old Nigerian businessman and Africa’s most prominent industrialist ended the decade as the 96th wealthiest man in the world.

Mr Jeff Bezos remains the richest in the world with $115 billion in his kitty while Mr Bill Gates and Mr Bernard Arnault followed as 2nd and 3rd respectively with $113.7 billion and $105 billion. Mr Warren Buffett was the fourth with $89.3 billion on the world billionaires’ chart.

Mr Dangote’s estimated worth in the latest Bloomberg ranking far outstrips an earlier ranking by the Forbes Magazine, another elite publication which placed his fortune at $10.8 billion in the 2019 Forbes Africa’s Billionaires’ list released in January, although he retained the rank as the richest African for the 8th consecutive year in the latter ranking.
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Bloomberg is a global information and technology company, that connect decision makers to a dynamic network of data, people and ideas – “accurately delivering business and financial information, news and insights to customers around the world” Bloomberg L.P. provides financial software tools such as an analytics and equity trading platform, data services, and news to financial companies and organizations through the Bloomberg Terminal.’

Born into a wealthy Muslim family of traders in the north, Mr Dangote incorporated his own business selling cement at 21. He shifted to manufacturing the building material in the 1990s, helped by government policies that encouraged ways to reduce the need for imports.
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His critics still accuse him of taking advantage of his closeness to the government to gain an unfair market advantage, a claim he has repeatedly dismissed.

His conglomerate, Dangote Industries, includes the biggest cement company on the continent, the Lagos-listed Dangote Cement Plc. That’s one of four publicly traded companies under the Dangote umbrella that account for more than a fifth of the value of the Nigerian stock exchange.

https://businesspost.ng/general/dangotes-net-worth-grows-to-14-8bn/

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