₦airaland Forum

By Dipo Olowookere

As part of its commitment to safety on the roads across the country, the Federal Road Safety Corps (FRSC) has highlighted some items vehicle owners should always carry along.

In a recent post, FRSC said the gadgets expected in every vehicle include warning triangle (C-Caution), fire extinguisher, jack, spare tyre, first aid kit, wheel spanner, water, hydraulic, transmission fluid, torch, spare fan belt, tow rope, wedges, amongst others.

The road safety corps, founded in 1988, is the government agency with statutory responsibilities for road safety administration in Nigeria.

The agency, under the present leadership of its Corps Marshall, Mr Boboye Olayemi Oyeyemi, has been doing everything possible to ensure drivers have property education of what are expected of them.

https://businesspost.ng/2019/08/08/frsc-lists-essential-requirements-in-a-vehicle/

N5trn Debt: We Don’t Owe AMCON–United Capital
https://businesspost.ng/2019/08/08/n5trn-debt-we-dont-owe-amcon-united-capital/

UBA Gets Aa- Rating from Agusto & Co.
https://businesspost.ng/2019/08/08/uba-gets-aa-rating-from-agusto-co/

By Dipo Olowookere

A Federal High Court sitting in Abuja has granted the application filed by the Department for State Service (DSS) to keep publisher of popular news platform, Sahara Reporters, Mr Omoyele Sowore, in its custody for 45 days.

The nation’s secret police had sought for permission to detain the former presidential aspirant in its facility for 90 days, but the court halved the number of days requested for.

Mr Sowore was picked in Lagos in the wee hours of Saturday, August 3, 2019 by the DSS over his call for revolution in the country through a protest fixed for Monday, August 5, 2019.

In a statement earlier issued by the police last weekend, the protest, tagged #RevolutionNow, was described as treasonable felony, with demonstrators warned to stay clear or be ready to face the full wrath of the law. At the protest on Monday, some of those who defied the warning were arrested by the police at different locations.

The group accused the present administration of President Muhammadu Buhari of failing to deliver what he promised Nigerians when he sought for votes from the electorates.

While ruling today on the ex parte application filed by the DSS, Justice Taiwo Taiwo said the agency can seek for an extension to further detain Mr Sowore when the present order expires on September 21, 2019.

https://businesspost.ng/2019/08/08/dss-secures-court-order-to-detain-sowore-for-45-days/

MTN Nigeria Joins MSCI Frontier Markets Index
https://businesspost.ng/2019/08/08/mtn-nigeria-joins-msci-frontier-markets-index/

Trading in Universal Insurance Shares Resumes as NSE Lifts Embargo
https://businesspost.ng/2019/08/08/trading-in-universal-insurance-shares-resumes-as-nse-lifts-embargo/

Banks, Investors Buy N115bn OMO Bills from CBN Wednesday
https://businesspost.ng/2019/08/08/banks-investors-buy-n115bn-omo-bills-from-cbn-wednesday/

Why Listed Firms Should Embrace Transparent Disclosure–NSE Boss
https://businesspost.ng/2019/08/08/why-listed-firms-should-embrace-transparent-disclosure-nse-boss/

Panic as Brent Further Trades Below Nigeria’s $60 Benchmark
https://businesspost.ng/2019/08/08/panic-as-brent-further-trades-below-nigerias-60-benchmark/

Banks, Investors Buy N115bn OMO Bills from CBN Wednesday
https://businesspost.ng/2019/08/08/banks-investors-buy-n115bn-omo-bills-from-cbn-wednesday/

Panic as Brent Further Trades Below Nigeria’s $60 Benchmark
https://businesspost.ng/2019/08/08/panic-as-brent-further-trades-below-nigerias-60-benchmark/

By Adedapo Adesanya

The Nigerian Stock Exchange (NSE) has officially announced the appointment of multi-award winning artiste, Innocent Ujah Idibia popularly known as ‘2face Idibia’ or recently, 2Baba, as its Good Cause Ambassador.

2Baba’s appointment was disclosed at an unveiling ceremony held on Tuesday, August 6, 2019, at the Stock Exchange in Lagos and witnessed by some members of the investing community.

Speaking at the event to commemorate the announcement, Chief Executive Officer of the NSE, Mr. Oscar Onyema, stated that the exchange was pleased to welcome the musician as its first Good Cause Ambassador.

According to Mr Onyema, 2Baba’s focus on promoting social causes such as raising awareness on peace, the fight against fake drugs, and various other ills that plague the Nigerian society through his music aligns with NSE’s commitment to creating sustainable value for its diverse stakeholders as well as increasing impact in line with the Sustainable Development Goals (SDGs).

“We run an inclusive corporate sustainability strategy that promotes a market-based approach to environmental, social and governance imperatives amongst all stakeholders. The appointment of Tuface is aimed at inspiring accelerated progress towards the advancement of the SDGs,” Mr Onyema said.

In his remarks, 2Baba said while it’s an honour to join the NSE family, he has always used his music to inspire change in the world and this has been the focus of the campaigns he has supported over the years.

“I’m indeed delighted to be given the opportunity to serve in this capacity. I will like to assure all that I will be dedicated to the good cause of promoting sustainable development as championed by the Exchange,” the prolific artiste said.

Further to his appointment as NSE Good Cause Ambassador, 2Baba will lend his voice to raising awareness and mobilizing support for the Corporate Social Responsibility and Sustainability initiatives of The Nigerian Stock Exchange geared toward achieving the United Nations Sustainable Develop​ment Goals (SDGs) in Nigeria.

https://businesspost.ng/2019/08/07/2baba-joins-nigerian-stock-exchange/

Flour Mills Will Achieve 137.3% EPS Growth—Analysts
https://businesspost.ng/2019/08/07/flour-mills-will-achieve-137-3-eps-growth-analysts/

MTN Nigeria, Others to Pay Dividend This Month
https://businesspost.ng/2019/08/07/mtn-nigeria-others-to-pay-dividend-this-month/

NURTW Picks Universal Insurance to Insure Drivers, Passengers
https://businesspost.ng/2019/08/07/nurtw-picks-universal-insurance-to-insure-drivers-passengers/

2Baba Joins Nigerian Stock Exchange
https://businesspost.ng/2019/08/07/2baba-joins-nigerian-stock-exchange/

Union Bank Issues N30bn 10-Year Bond at 16.2%
https://businesspost.ng/2019/08/06/union-bank-issues-n30bn-10-year-bond-at-16-2/

Forte Oil Liquidity Position Relatively Weak—GCR
https://businesspost.ng/2019/08/06/forte-oil-liquidity-position-relatively-weak-gcr/

Don't Exaggerate Benefits of Advertised Products, Services—CBN Warns Banks
https://businesspost.ng/2019/08/06/dont-exaggerate-benefits-of-advertised-products-services-cbn-warns-banks/

By Adedapo Adesanya

The nation’s apex banking regulatory body, the Central Bank of Nigeria (CBN), has warned financial institutions operating in the country against advertisements that tend to exaggerate the benefits of its products and services, while de-emphasizing its associated risks or important disclosure information.

This, the CBN said banks should avoid doing in its recently published consumer protection guidelines titled “Drafts on Disclosure and Transparency” which ensures they provide consumers with all material and relevant information regarding their business relationship in a clear and transparent manner.

The bankers’ bank also cautioned various financial institutions against putting out “misleading, deceptive, or injurious” advertisments.

According to the statement, “The content of advertisements shall be factual and unambiguous, expressed in clear and simple language and shall not be offensive.”

Banks were also directed that the cost of a product or services, including all fees and other charges shall be clearly disclosed to the public and all interest rates in advertisements are to be disclosed on an annual basis and not for a shorter period.

Furthermore, the guideline also stated that financial institutions should disclose their contact details in any promotional material published in a print medium, specifying the usage of a minimum font size of 10.

On competition, “Financial Institutions shall not mention names of competitors or make unverifiable comparisons in their advertisements or promotional materials,” the guideline explained.

In the case where an advertisement refers to or by implication is linked to other value-added benefits, it was stated by the CBN that the nature and value of such benefits should be fully disclosed.

Warning banks on unsolicited advertisements, the draft guidelines said, “Unsolicited advertisements through emails, text messages, voice calls and other channels sent by or on behalf of a Financial Institution shall be at no cost to the consumer and shall contain an opt-out provision for future advertisements.”

Financial institutions were also alerted not to advertise any product or service without the prior notice and approval of Consumer Protection Department of the CBN.

https://businesspost.ng/2019/08/06/dont-exaggerate-benefits-of-advertised-products-services-cbn-warns-banks/

By Adedapo Adesanya

Nigerians have taken to social media to express their displeasure over the planned 5 percent Value Added Tax (VAT) to be charged by government from 2020 for buying items on the internet.

This means from next year, those making online purchases in Nigeria would have to pay more.

According to the chairman of the Federal Inland Revenue Service (FIRS), Mr Babatunde Fowler, government has not made a final decision on the matter yet, but plans are ongoing to charge customers VAT on purchases made electronically using their banks on e-commerce websites.

Asides the payment on delivery option, the use of bank cards is one of the major ways people pay for purchases done online and this is set to attract charges with the proposed 5 percent inclusion on VAT from FIRS.

Many Nigerians have adapted this mode of transaction when it comes to trading, and many virtual stores have risen in the past five years as online buying and selling became mainstream.

However, with the proposed tax, many are of the opinion that the levy will dent the e-commerce sector, which is still in its developmental stage by discouraging cashless transactions.

A twitter user with the handle @i_foya, said, “I hope this news of 5% vat on online purchases is fake news sha because I don’t understand how you intend to run a cashless economy with so many charges. Na to dey carry bulk money waka around like ancient people win am.”

Some are skeptical of the move, as expressed by another Twitter user – @Ekelennaemeka, who wrote that, “5% VAT on card payments? I think it’ a welcome idea if harnessed well but this will cause issues for online buyers in Nigeria. However, this is not the right time to bring up this when we are the world headquarters of extreme poverty. What are our legislatures doing?”

Some are set to make a U-turn and revert to the traditional means of payment as opnined by @matjerriee, who stated that, “5% VAT on all online sales… who suggests this ideas for the govt? Twitter sellers, na cash payments from now o. We’re no more going cashless.”

“This will lead to a decline in use of cards online,” states Oluyomi Ojo, founder of Printivo, an online design and printing company during an interview with Quartz Africa. “Merchants will opt for bank transfers and customers will opt for other options. There’s no other way to look at the proposed policy than to see it as a card payment killer.,” he adds.

If the proposition sees the green light, it will add to a growing number of existing charges Nigerian bank card holders already face, including a card maintenance fee and it would have an effect on the country’s budding startup businesses.

https://businesspost.ng/2019/08/06/read-what-nigerians-said-about-proposed-5-vat-on-online-shopping/

UBA Board Meets August 22 for 2019 HY Results
https://businesspost.ng/2019/08/06/uba-board-meets-august-22-for-2019-hy-results/

Read What Nigerians Said About Proposed 5% VAT on Online Shopping
https://businesspost.ng/2019/08/06/read-what-nigerians-said-about-proposed-5-vat-on-online-shopping/

Pay Special Attention to These Four Stocks
https://businesspost.ng/2019/08/06/pay-special-attention-to-these-four-stocks/

Orjiako Sells 3.5m Seplat Shares to Another Investor
https://businesspost.ng/2019/08/06/orjiako-sells-3-5m-seplat-shares-to-another-investor/

One-Month T-Bill Yield Rises by 0.50% to 10.21%
https://businesspost.ng/2019/08/06/one-month-t-bill-yield-rises-by-0-50-to-10-21/

Acquisition: Olam Lowers Dangote Flour Valuation to N120bn
https://businesspost.ng/2019/08/05/acquisition-olam-lowers-dangote-flour-valuation-to-n120bn/

Inflation to Moderate to 11.01% in July—FSDH
https://businesspost.ng/2019/08/05/inflation-to-moderate-to-11-01-in-july-fsdh/

Rates to Fall Amid Ease in Financial System Liquidity
https://businesspost.ng/2019/08/05/rates-to-fall-amid-ease-in-financial-system-liquidity/

Inflation to Moderate to 11.01% in July—FSDH
https://businesspost.ng/2019/08/05/inflation-to-moderate-to-11-01-in-july-fsdh/

Court Orders FG to Pay Oil Firm’s N1.56bn Subsidy Claims to Sterling Bank
https://businesspost.ng/2019/08/05/court-orders-fg-to-pay-oil-firms-n1-56bn-subsidy-claims-to-sterling-bank/

FG May Suspend VAT Payment on NSE Transactions
https://businesspost.ng/2019/08/05/fg-may-suspend-vat-payment-on-nse-transactions/

By Dipo Olowookere

The Chief Economist for Africa at the World Bank Group, Mr Albert Zeufack, has expressed worry at the huge amount of money used by some African countries to service their debts.

In a press statement issued last Wednesday, the global lender said Africa’s poorest countries saw little to no progress on average in improving the quality of their policy and institutional frameworks in 2018, according to its annual Country Policy and Institutional Assessment (CPIA).

It noted that the average CPIA score in Africa’s 38 International Development Association (IDA)-eligible countries in 2018 remained unchanged at 3.1 on a scale of 0 to 6, with some areas of social policy seeing improvements while macroeconomic management weakened, adding that the rule of law, accountability and transparency, and the quality of public administration remained major areas that impede the efficient use of public resources across the region.

This year’s CPIA Africa report takes a closer look at debt management, as the median government debt-to-GDP ratio reached 54.9 percent of GDP in 2018, an 18.5 percentage-point increase since 2013. At the same time, the share of foreign currency bonds in total external debt increased by 10 percent while the shares of debt owed to commercial and non-Paris Club creditors rose by 5 percentage points since 2010, and sovereign bond issuances have increased rapidly.

Mr Zeufack, who was quoted in the statement, stressed that, “Some African countries are at risk of mortgaging their people’s futures in favour of today’s consumption,” pointing out that, “When countries spend most of their revenue servicing debt, fewer resources are left for education, health, and critical services for their people. This stops progress in its tracks.”

Taken together, the increase in debt levels paired with the shift of external debt toward more market-based, more expensive, and riskier sources of finance have increased debt vulnerabilities substantially among IDA countries in Sub-Saharan Africa. The report recommends that countries improve their debt management capabilities and systems, which can enhance transparency and help stabilize the economy in the long-term.

Rwanda continues to top the CPIA ratings both in Africa and around the globe with a score of 4.0, followed in the region by Cabo Verde (3. and Kenya, Senegal, and Uganda (all at 3.7). South Sudan remained the lowest-scoring country on the CPIA with a score of 1.5, the report said.

Fragile countries in Sub-Saharan Africa improved slightly in the areas of gender equality, human development, and environmental stability, which bodes well for their ability to tackle the drivers of conflict and exclusion. In fact, fragile countries in Africa saw stronger performance in social inclusion than fragile countries in other parts of the world. Non-fragile IDA countries in Africa performed on par with their global peers overall, with the notable exception of social inclusion policies, where they underperformed especially on the issue of gender equality, it added.

“Improvements in social inclusion and service delivery have historically been crucial elements of countries’ transitions out of fragility, so even modest steps count,” said Gerard Kambou, Senior Economist and Lead Author of the CPIA report.

“African countries, fragile and non-fragile, need to keep the focus on gender, education, health, climate, and governance issues alongside macroeconomic management if they want to see true and lasting progress,” Kambou added.

The report recommends that Africa’s IDA countries accelerate business regulatory reforms to support private sector development and improve domestic revenue mobilization in addition to strengthening their debt management. The report team plans to hold discussions on this year’s results and recommendations in several African countries in September 2019.

https://businesspost.ng/2019/08/04/african-nations-risk-mortgaging-future-for-todays-consumption/

By Dipo Olowookere

A definitive step to deepen broadband connectivity in homes and offices across the country has been taken by a leading telecommunications services provider, Airtel Nigeria.

This was through the recent introduction of affordable Home Broadband packages with large volume of data for subscribers.

According to a statement, the Airtel Home Broadband (HBB) package is available in Routers and MiFis and comes in various affordable recharge plans, offering up to 100GB of data bonus.

Under the new Airtel Home Broadband plans, when a customer purchases an Airtel Router for N25,000, he or she is instantly credited with 100GB data and also offered complimentary 10GB data for 6 months on purchase of the Airtel N10,000 data bundle plan.

The Airtel MIFI comes at N15,000 and offers instant 40GB data and an additional 5GB monthly for 6 months on purchase of the N5,000 Data Bundle plan.

The Routers and MIFIs are bundled with a 4G SIM and customers can buy a bundle plan, register their data line and check their data balance by dialling *370# or by visiting the website, www.onetouch.ng.

Commenting on the new offer, Godfrey Efeurhobo, Director, Home Broadband, Airtel Nigeria, said, “Airtel believes the new offer will empower more telecoms consumers to become more productive and more successful in their respective endeavours.”

“With the widest 4G network in the country, Airtel is well positioned to offer a robust and best in class experience for Home Broadband and mobile Internet as we connect people to their dreams,” he added.

It was stated that existing customers with 3G routers can also enjoy the Airtel Home Broadband plan by upgrading their data SIMs to 4G.

Airtel explained that the launch of its exciting Home Broadband offerings rides on its expansive and modernized 4G network, which has been deployed in over 130 cities and towns across Nigeria, making Airtel the first operator to launch the Home Broadband plans in all 36 states including the Federal Capital Territory.

https://businesspost.ng/2019/08/04/airtel-introduces-cheap-home-broadband-plans/

Chams to Deliver Strong, Sustainable Results
https://businesspost.ng/2019/08/04/chams-to-deliver-strong-sustainable-results/

Ex-AIICO Manager Becomes Acting Head of NAICOM
https://businesspost.ng/2019/08/04/ex-aiico-manager-becomes-acting-head-of-naicom/

Chicken Republic’s Parent Firm Seeks N3.6bn for Expansion
https://businesspost.ng/2019/08/03/chicken-republics-parent-firm-seeks-n3-6bn-for-expansion/

Stockbrokers Get Two Months to Stop Usage of Gmail, Yahoo, Others
https://businesspost.ng/2019/08/03/stockbrokers-get-two-months-to-stop-usage-of-gmail-yahoo-others/

We've Paid N1.7trn Tax, Levies Since 2001—MTN Nigeria
https://businesspost.ng/2019/08/03/weve-paid-n1-7trn-tax-levies-since-2001-mtn-nigeria/

RAK Unity Announces Interim Dividend of 10 Kobo
https://businesspost.ng/2019/08/03/rak-unity-announces-interim-dividend-of-10-kobo/

Chicken Republic's Parent Firm Seeks N3.6bn for Expansion
https://businesspost.ng/2019/08/03/chicken-republics-parent-firm-seeks-n3-6bn-for-expansion/

MTN Nigeria Tops Losers’ Chart as Index Sheds 0.43%
https://businesspost.ng/2019/08/03/mtn-nigeria-tops-losers-chart-as-index-sheds-0-43/

Dozie Floats Sparkle After Exiting Diamond Bank
https://businesspost.ng/2019/08/03/dozie-floats-sparkle-after-diamond-bank-exit/

Huge Demand for Dollar Weakens Naira by 34 Kobo at I&E
https://businesspost.ng/2019/08/03/huge-demand-for-dollar-weakens-naira-by-34-kobo-at-ie/

VIDEO: Cops Brutally Beat Customer Threatening to Close First Bank Account
https://businesspost.ng/2019/08/02/video-cops-brutally-beat-customer-threatening-to-close-first-bank-account/

Africa Records M&A Deals Worth $21bn in H1 2019
https://businesspost.ng/2019/08/02/africa-records-ma-deals-worth-21bn-in-h1-2019/

Honeywell Flour Targets More Revenue Streams to Boost FY Performance
https://businesspost.ng/2019/08/02/honeywell-flour-targets-more-revenue-streams-to-boost-fy-performance/

Bank Petitions EFCC Over N700m Fraud by Zenith Bank Staff
https://businesspost.ng/2019/08/02/bank-petitions-efcc-over-n700m-fraud-by-zenith-bank-staff/

Adepoju Becomes Ecobank’s Group Chief Financial Officer
https://businesspost.ng/2019/08/02/adepoju-becomes-ecobanks-group-chief-financial-officer/

Investment Dilemma: Declining Yields Vs Crashing Equity Market
https://businesspost.ng/2019/08/01/investment-dilemma-declining-yields-vs-crashing-equity-market/

CWG Selects Adeyipo as Substantive MD/CEO
https://businesspost.ng/2019/08/01/cwg-selects-adeyipo-as-substantive-md-ceo/

**N167 to N50 in Two Years

By Dipo Olowookere

One may not be wrong to say shareholders of Nigerian Breweries Plc are not satisfied with the performance of the company on the floor of the Nigerian Stock Exchange (NSE) in recent times.

This is because the rate at wish the value of the company’s stocks at the market is nose-diving is alarming and it calls for worry and an urgent action to turn things around.

Even the general performance of the company has not been very impressive going by the financial statements of the brewery giant in the past quarters.

Business Post reports that yesterday, shares of the leading beer maker in the country closed at the stock market at N50 per unit after going down by N5 or 9.09 percent.
ALSO READ Nigeria’s Business Climate Healthy for Investments—NNPC

An analysis done by Business Post showed that year-on-year, the company’s stocks have lost 52 percent. To put it in simple words, shares of Nigerian Breweries, which traded at N105 each on July 31, 2018, are not worth N50 per unit.

It further means that 1,000 units of Nigerian Breweries stock worth N105,000 a year ago were now worth N50,000 at the close of business on Wednesday (yesterday).

Two years ago, the same number of shares of the company were valued at N167,000 because as at July 31, 2017, the stocks were exchanged at the market at N167 each. This means the shares have depreciated by 70 percent in two years.
ALSO READ Afreximbank Opens Shareholding to Investors

The next question would be what has been the cause of this massive decline in the equities of Nigerian Breweries at the NSE?

One simple answer may be that investors are not impressed with the results being churned out by the company in recent times and are probably losing confidence in the ability of the present management to turn things around.

However, it must be stressed that since Nigeria slipped into recession in 2016, many companies have found it difficult to replicate the pre-recession performances.

Nigerian Breweries has had to struggle with competition in the beer market and consumers are getting cheaper substitute to products of the company. This is because the purchasing power of beer consumers has not been the same since 2016.
ALSO READ Evans Medical, Two Others Remain on NSE Delisting Watchlist

Also, the new excise duty introduced by the federal government on alcohol products in 2018 has affected the performance of Nigerian Breweries.

From what Business Post gathered, the management and board of Nigerian Breweries are making frantic efforts to make sure things get better and get the company’s shares stronger again at the stock market.

How long would this take is a question that may not be answered easily.

https://businesspost.ng/2019/08/01/nigerian-breweries-shares-fall-from-n105-to-n50-in-one-year/

Investors Oversubscribe Access Bank N30bn Bond
https://businesspost.ng/2019/08/01/investors-oversubscribe-access-bank-n30bn-bond/

Livestock Feeds Promotes Adedeji to Acting MD/CEO
https://businesspost.ng/2019/08/01/livestock-feeds-promotes-adedeji-to-acting-md-ceo/

Former CEO of Defunct FinBank Joins UAC Nigeria Board
https://businesspost.ng/2019/08/01/former-ceo-of-defunct-finbank-joins-uac-nigeria-board/

Dangote Sugar HY Revenue Drops Amid Hike in Retail Sales
https://businesspost.ng/2019/08/01/dangote-sugar-hy-revenue-drops-amid-hike-in-retail-sales/

Nigerian Breweries Shares Fall from N105 to N50 in One Year
**N167 to N50 in Two Years
https://businesspost.ng/2019/08/01/nigerian-breweries-shares-fall-from-n105-to-n50-in-one-year/