₦airaland Forum

By Modupe Gbadeyanka

The incessant harassment of Nigerian citizens in Ghana by locals will no longer be tolerated, the federal government has warned its West African neighbour.

A statement issued in Abuja on Friday by the Minister of Information and Culture, Mr Lai Mohammed, said this warning was given because it was “deeply concerned” by the constant “progressive acts of hostility towards the country by Ghanaian authorities.”

According to the Minister, the government of President Muhammadu Buhari was “urgently considering a number of options aimed at ameliorating the situation.”

He said even though over one million Ghanaians are resident in Nigeria, they are not being subjected to the kind of hostility being meted out to Nigerians in Ghana.

“Also, even though the main reason given for the seizure of federal government property at ‪No. 10, Barnes Road in Accra is the non-renewal of the lease after expiration, the Ghanaian authorities did not give Nigeria the right of first refusal or the notice to renew the lease.

“By contrast, the lease on some of the properties occupied by the Ghanaian Mission in Nigeria has long expired, yet such properties have not been seized.

“Nigeria has time after time demonstrated its fidelity to the long cordial relations with Ghana. But indications, especially in recent times, are that Nigeria’s stance is now being taken for granted and its citizens being made targets of harassment and objects of ridicule.

“This will no longer be tolerated under any guise.

“In the meantime, the federal government wishes to appeal to its citizens resident in Ghana to remain law-abiding and avoid engaging in self-help, despite their ordeal,” the Information Minister said.

In the statement, Mr Mohammed said the federal government has been documenting the acts of hostility towards Nigeria and Nigerians by the Ghanaian authorities.

He named one of them as the seizure of the Nigerian Mission’s property, which the Nigerian government has used as diplomatic premises for almost 50 years, saying the action was a “serious breach of the Vienna Convention.”

He also said the Ghanaian government was aggressive towards Nigerians and even deported about 825 Nigerians between January 2018 and February 2019.

“Over 300 Nigerians shops were locked for four months in Kumasi in 2018; over 600 Nigerian shops were locked in 2019 and, currently, over 250 Nigerians shops have been locked.

“Residency Permit requirements, for which the Ghana Immigration Service has placed huge fees, far higher than the fees charged by the Nigerian Immigration Service. These include the compulsory non-citizen ID card ($120, and $60 for yearly renewal); medical examinations, including for COVID-19 which is newly-introduced (about $120), and payment for a residency permit ($400 compared to the N7,000 being paid by Ghanaians for residency card in Nigeria.

“Outrageous stipulations in the Ghana Investment Promotion Centre Act. When the Act was initially promulgated in 1994, a foreigner is required to invest at least $300,000 by way of equity capital and also employ 10 Ghanaians. This Act has now been amended twice, with the 2018 GIPC Act raising the minimum capital base for foreign-owned businesses to $1 million. Though targeted at foreigners, it seems GIPC’s definition of foreigners is Nigerians. The GIPC Act also negates the ECOWAS Protocol.

“Media war against Nigerians in Ghana. The negative reportage of issues concerning Nigerians resident in Ghana by the Ghanaian media is fuelling an emerging xenophobic attitude towards Nigerian traders and Nigerians in general. The immediate fallout is the incessant harassment and arrest of Nigerian traders and closure of their shops.

“Harsh and openly-biased judicial trial and pronouncement of indiscriminately-long jail terms for convicted Nigerians. There are currently over 200 Nigerians in the Nsawam Maximum prison in Ghana alone,” the Minister said.

https://businesspost.ng/general/harassment-of-nigerians-fg-gives-ghana-last-warning/

Shares of Access Bank 'Burn' at Stock Exchange After Fire Incident
https://businesspost.ng/banking/shares-of-access-bank-burn-at-stock-exchange-after-fire-incident/

Dangote Cement, 18 Others Surrender NSE to Bears as Index Sheds 0.10%
https://businesspost.ng/economy/dangote-cement-18-others-surrender-nse-to-bears-as-index-sheds-0-10/

Naira Depreciates at BDC Segment as CBN Resumes Weekly FX Sales
https://businesspost.ng/economy/naira-depreciates-at-bdc-segment-as-cbn-resumes-weekly-fx-sales/

Nigeria Lists New 25-Year Bond on Stock Exchange
https://businesspost.ng/economy/nigeria-lists-new-25-year-bond-on-stock-exchange/

Oil Prices Fall as Hurricane Laura Makes Landfall
https://businesspost.ng/economy/oil-prices-fall-as-hurricane-laura-makes-landfall/

NASD Exchange Remains in Flat Territory Thursday
https://businesspost.ng/economy/nasd-exchange-remains-in-flat-territory-thursday/

By Dipo Olowookere

In order to make its customers enjoy superior internet connection with uncapped speed and never run out of data while browsing the internet, Airtel Nigeria has introduced its Unlimited Ultra Plans.

The leading telecommunications services provider in a statement on Thursday said the plans come in four different packages, though with applicable Fair Usage Policy (FUP).

According to Airtel, the new offering, which is available only to Routers and Outdoor Unit (ODU) customers, will offer telecom consumers the freedom to do more and become more productive without worrying about data speed reduction and utilization, ensuring that customers Never Run Out of Data.

In the statement, it said customers can choose from any of the Unlimited Ultra Weekly, Unlimited Ultra Standard, Unlimited Ultra Diamond and Unlimited Ultra Platinum plan.

Customers who purchase Unlimited Ultra weekly, which is priced at N5,000, will enjoy unlimited data for 7 days with a FUP of 30GB plus 1GB data daily after FUP, whilst those who purchase the Unlimited Ultra Standard for N20,000 will enjoy unlimited data for 30 days with a FUP of 130GB plus 3GB data daily after FUP.

For Unlimited Ultra Diamond, which can be purchased for N30,000 and Unlimited Ultra Platinum for N60,000, customers will enjoy unlimited data for 30 Days with a FUP of 210GB and 550GB respectively plus 3GB data daily after FUP, the telco said.

To subscribe to the Airtel Unlimited Ultra Plans, customers are required to visit www.airtel.com.ng/HBB or dial *370# from an Airtel line. The plans can also be purchased via the Airtel App and at all Airtel retail outlets.

Commenting on the new offer, the Director of Home Broadband at Airtel Nigeria, Mr Godfrey Efeurhobo, said the unlimited ultra plans will further enrich home broadband customers experience.

According to him, the plans have been designed to meet the growing demand for quality home broadband experience with consideration for those working from home, schooling remotely and enjoying home entertainment.

“Airtel is committed to creating unique and innovative value propositions that will make life simpler, easier, better and more fun for all its customers.

“With this compelling unlimited ultra plans, we are confident that telecoms consumers in the Home Broadband segment will have an enriched experience and further empowered to realize their full potentials,” he said.

https://businesspost.ng/technology/airtel-introduces-unlimited-data-plans-with-uncapped-speed/

By Dipo Olowookere

Domestic investors who purchased the various government debt securities in Nigeria will receive interests valued at N2.2 trillion next year, the federal government has disclosed.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, confirmed this development in a document she personally signed a few days ago.

In the FGN 2021 budget call circular to the various Ministries, Departments and Agencies (MDAs), the Minister said in the year, the government plans to specifically use the sum of N2.183 trillion for domestic debt service, while N940.89 billion would be used pay interests on foreign loans, including from China and others.

Business Post reports that to raise funds locally, the federal government usually sells different bonds and treasury bills to investors. The debt securities are purchased in Naira, while for the Dollar-denominated securities; it sells the Eurobonds and gets the other foreign funds, especially from international lenders, paid directly into the account of the Central Bank of Nigeria (CBN).

According to the Debt Management Office (DMO), as at March 31, 2020, Nigeria’s total debt profile stood at N28.6 trillion, about 4.4 per cent quarter-on-quarter increase from N27.4 trillion as at December 31, 2019.

A breakdown showed that domestic debt accounted for 65.1 per cent amounting to N18.6 trillion ($51.6 billion), while external debt made up for the remaining 34.9 per cent, which translates to N9.9 trillion ($27.7 billion).

To raise funds to finance budget deficits, the government issues the monthly FGN bonds, monthly FGN savings bond, Sukuk and bi-monthly sale of treasury bills.

Last Wednesday, the federal government auctioned N150 billion worth of FGN bonds to domestic investors spread across four different maturities of which it received bids worth N242.3 billion and allotted N126.2 billion to successful bidders.

This week, precisely on Wednesday, the apex bank will sell treasury bills worth N197.6 billion to local investors at the primary market, while early next month, the FGN savings bonds will likely be offered for sale.

In 2021, the government plans to spend N12.7 trillion out of which N7.5 trillion is expected to be from revenue generated internally, with the deficit to be financed through loans from both local and foreign sources.

Borrowing locally has been cheaper lately. As at two weeks ago, the CBN sold the T-bills to investors for as low as 1.20 per cent.

https://businesspost.ng/economy/fg-to-pay-local-bond-t-bills-investors-n2-2trn-interest-in-2021/

FG to Pay Local Bond, T-Bills Investors N2.2trn Interest in 2021
https://businesspost.ng/economy/fg-to-pay-local-bond-t-bills-investors-n2-2trn-interest-in-2021/

NSE Carries Out Price Adjustment on Northern Nigerian Flour Mills’ Shares
https://businesspost.ng/economy/nse-carries-out-price-adjustment-on-northern-nigerian-flour-mills-shares/

First Bank, UBA, Others Cut Offshore Spending Limit on Naira Card to $100
https://businesspost.ng/banking/first-bank-uba-others-cut-offshore-spending-limit-on-naira-card-to-100/

Naira Appreciates to N379/$1 at Interbank Segment
https://businesspost.ng/economy/naira-appreciates-to-n379-1-at-interbank/

Buying Pressure on Cement Stocks Expands NSE Index by 0.25%
https://businesspost.ng/economy/buying-pressure-on-cement-stocks-expands-nse-index-by-0-25/

Storm-Induced Supply Cut Drives Oil Prices to Five-Month High
https://businesspost.ng/economy/storm-induced-supply-cut-drives-oil-prices-to-five-month-high/

NSE Upgrades X-Whistle for Better Investor Protection
https://businesspost.ng/economy/nse-upgrades-x-whistle-for-better-investor-protection/

FX Crisis: CBN Introduces Mechanism to Verify Prices of Imported Goods
https://businesspost.ng/economy/fx-crisis-cbn-introduces-mechanism-to-verify-prices-of-imported-goods/

SERAP Demands Apology from FFK Over Verbal Attack on Journalist
https://businesspost.ng/general/serap-demands-apology-from-fani-kayode-over-attack-on-journalist/

NAFDAC Alerts Nigerians to Harmful Fruit Juice from Australia
https://businesspost.ng/brands-products/nafdac-alerts-nigerians-to-harmful-fruit-juice-from-australia/

By Adedapo Adesanya

More financial institutions in Nigeria are beginning to reduce international spending limits for their customers as the foreign exchange situation in the country continues to bite harder.

As they face tightening forex liquidity, it will be difficult for banks to meet their dollar commitments, particularly for debit card usage, hence, the need to cut down the spending limits.

In a message sent to its customers and seen by Business Post, top lender, First Bank Nigeria, announced that it has now limited the amount its customers can henceforth spend for offshore transactions in a month, $100.

“Spend now and pay later with your Naira Credit Card. Enjoy up to N3,000,000 credit facility, $100 monthly spend limit on international transactions, 45 interest-free days, flexible repayment plan, access to over 29 million channels worldwide, card control and protection using the Card Services feature on FirstMobile App,” the bank said in the notice.

Equally, fellow tier-one lender, UBA, also announced that it was following the path due to the uncertainties surrounding the forex market which had forced its hand to review its international spending limits.

The company, in a notice to its customers, said, “In light of the uncertainties in the Foreign Exchange Market, we have had to review international card spending limits.

“The new applicable limit on your Naira card is $100 (or its equivalent in other foreign currencies) monthly effective August 21, 2020.

“Whilst we note this significant reduction from your previous spend limit, we would like to reassure that this limit will be revised upwards as the market continues to improve.”

Also, Fidelity Bank took the same step, putting $100 cap on international transactions via its Naira card.

The bank stated, “Please be informed that the spending limit for international transactions on our Fidelity Naira Visa and MasterCard is now $100 monthly.

“This means that your card can be used on Point-of-Sale (POS), WEB and ATM for a cumulative transaction value of $100 monthly.”

Business Post also reached out to the customer care of Ecobank Nigeria, which also confirmed to us that a $100 monthly limit has been placed on international spending using its cards.

Two weeks ago, we reported that Guaranty Trust Bank (GTBank) has slashed the international spending limit on its Naira Mastercard by 80 per cent to $100 per month from $500 it first reduced it to earlier in the year.

It was also reported that Stanbic IBTC Bank said its customers will only be able to spend $500 per month in terms of offshore card transactions and placed a monthly limit of $100 on withdrawals.

Another tier one bank, Zenith Bank Plc, announced a temporary suspension of the use of debit cards for cash withdrawals abroad while it slashed the monthly spending limit for international card users to $200.

Nigerian banks are struggling to get forex to meet the huge demand of customers.

https://businesspost.ng/banking/first-bank-uba-others-cut-offshore-spending-limit-on-naira-card-to-100/

SEC, Registrars to Simplify Processing Unclaimed Dividends
https://businesspost.ng/economy/sec-registrars-to-simplify-processing-unclaimed-dividends/

BDC Operators Trade Pound at N620 in Abuja, N617 in Lagos
https://businesspost.ng/economy/bdc-operators-trade-pound-at-n620-in-abuja-n617-in-lagos/

Brent Returns to $45 as Disruptive Storms Shutdown Production
https://businesspost.ng/economy/brent-returns-to-45-as-disruptive-storms-shutdown-production/

Stock Market Gains N4bn to Open Week Bullish
https://businesspost.ng/economy/stock-market-gains-n4bn-to-open-week-bullish/

Unlisted Securities Market’s Value Appreciates by 0.28% Monday
https://businesspost.ng/economy/unlisted-securities-markets-value-appreciates-by-0-28-monday/

Nokwary Technologies Wins 2020 Ecobank Fintech Challenge
https://businesspost.ng/technology/nokwary-technologies-wins-2020-ecobank-fintech-challenge/

Complete List of Dividends Declared on NSE in 2020
https://businesspost.ng/economy/complete-list-of-dividends-declared-on-nse-in-2020/

SEC Pledges Strict Enforcement of Capital Market Rules
https://businesspost.ng/economy/sec-pledges-strict-enforcement-of-capital-market-rules/

Investors Trade 241m Stocks Via EFG Hermes to Become Most Active Broker
https://businesspost.ng/economy/investors-trade-241m-stocks-via-efg-hermes-to-become-most-active-broker/

COVID-19: CBN Gives N49bn Loan to 92,000 Households, SMEs as Manufacturers Get N153bn
https://businesspost.ng/economy/covid-19-cbn-gives-n49bn-loan-to-92000-households-smes-as-manufacturers-get-n153bn/

Polaris Bank MD/CEO Retires After Four Years
https://businesspost.ng/jobs/polaris-bank-md-ceo-retires-after-four-years/

Nigeria Faces Quadrilemma of Recession, Inflation, Unemployment, Weak Currency—Rewane
https://businesspost.ng/economy/nigeria-faces-quadrilemma-of-recession-inflation-unemployment-weak-currency-rewane/

Nigeria's GDP Contracts 6.1% in Q2 2020
https://businesspost.ng/economy/nigerias-gdp-contracts-6-1-in-q2-2020/

Meristem Alerts Customers of ‘Bitcoin Doubler’ Scam
https://businesspost.ng/economy/meristem-alerts-customers-of-bitcoin-doubler-scam/

Lagos Health Commissioner Tests Positive for COVID-19
https://businesspost.ng/health/lagos-health-commissioner-tests-positive-for-covid-19/

Rebooting Nigeria's Economy Through Digital Technology
https://businesspost.ng/economy/rebooting-nigerias-economy-through-digital-technology/

Zenith Bank, GTBank, Transcorp Contribute 31.5% to Weekly Trading Volume on NSE
https://businesspost.ng/economy/zenith-bank-gtbank-transcorp-contribute-31-45-to-weekly-trading-volume-on-nse/

FX-Linked Costs to Pressure Earnings of MTN, Airtel, Others
https://businesspost.ng/technology/fx-linked-costs-to-pressure-earnings-of-mtn-airtel-others/

DMO to Investigate N1.08bn Corruption Scandal
https://businesspost.ng/economy/dmo-to-investigate-n1-08bn-corruption-scandal/

Airtel Nigeria Backs Law to Safeguard Telecoms Infrastructure
https://businesspost.ng/technology/airtel-nigeria-backs-law-to-safeguard-telecoms-infrastructure/

Lagos Sets Rules for Reopening of Hotels, Event Centres, Others
https://businesspost.ng/travel/lagos-sets-rules-for-reopening-of-hotels-event-centres-others/

CBN Expects Nigeria’s Q2 2020 GDP to Slip 1.03%
https://businesspost.ng/economy/cbn-expects-nigerias-q2-2020-gdp-to-slip-1-03/

SEC Shifts Focus to Non-Interest Issuance, Unclaimed Dividends
https://businesspost.ng/economy/sec-shifts-focus-to-non-interest-issuance-unclaimed-dividends/

Turkish Firm to Build Flour Milling Factory for BUA Group
https://businesspost.ng/economy/turkish-firm-to-build-flour-milling-factory-for-bua-group/

Soft Drinks Makers in Nigeria May Begin to Pay Excise Duty
https://businesspost.ng/economy/soft-drinks-makers-in-nigeria-may-begin-to-pay-excise-duty/

Ecobank Nigeria Chief Lists Businesses Graduates Can Do With Less Capital
https://businesspost.ng/economy/ecobank-nigeria-chief-lists-businesses-graduates-can-do-with-less-capital/

Access Bank Customer Base Surges as Onion Seller Wins Car in Promo
https://businesspost.ng/banking/access-bank-customer-base-surges-as-onion-seller-wins-car-in-promo/

Lagos Lawmakers Expect Rice to Sell Below N20,000 December
https://businesspost.ng/economy/lagos-lawmakers-expect-rice-to-sell-below-n20000-december/

Japaul Oil to Fully Become Mining Company by 2022
https://businesspost.ng/economy/japaul-oil-to-fully-become-mining-company-by-2022/

Ellah Lakes to Buy Oil Palm Processing Firm in Delta
https://businesspost.ng/economy/ellah-lakes-to-buy-oil-palm-processing-firm-in-delta/

Consolidated Hallmark Insurance Lists Additional Shares on NSE
https://businesspost.ng/economy/consolidated-hallmark-insurance-lists-additional-shares-on-nse/

Stats Office to Release Nigeria’s Q2 GDP Figures Monday
https://businesspost.ng/economy/stats-office-to-release-nigerias-q2-gdp-figures-monday/

Nigeria Exceeds OPEC Production Target by 110,000 bpd (Chart Included)
https://businesspost.ng/economy/nigeria-exceeds-opec-production-target-by-110000-bpd/

PFAs, Others Get 30-Year, 25-Year FGN Bonds Above 9%
https://businesspost.ng/economy/pfas-others-get-30-year-25-year-fgn-bonds-above-9/

Restructuring Delays International Energy Insurance 2019 FY Results
https://businesspost.ng/economy/restructuring-delays-international-energy-insurance-2019-fy-results/

Naira Gains N3 to Sell for N477/$1 at Black Market
https://businesspost.ng/economy/naira-gains-n3-to-sell-for-n477-1-at-black-market/

FAAC Allocation Rises 18.8% to N676.4bn in July
https://businesspost.ng/economy/faac-allocation-rises-18-8-to-n676-4bn-in-july/

NAICOM to Begin Recapitalisation Verification September 21
https://businesspost.ng/economy/naicom-to-begin-recapitalisation-verification-september-21/

Ikeja Electric Unveils WhatsApp Chatbot for Complaints Resolution
https://businesspost.ng/brands-products/ikeja-electric-unveils-whatsapp-chatbot-for-complaints-resolution/

Pension Assets to Grow 8.5% in 2020—Report
https://businesspost.ng/economy/pension-assets-to-grow-8-5-in-2020-report/

Flour Mills to Expand Edible Oil Refinery, Raise Funds
https://businesspost.ng/economy/flour-mills-to-expand-edible-oil-refinery-raise-funds/

Nigeria to Increase 2021 Budget by 18% to N12.7trn
https://businesspost.ng/economy/nigeria-to-increase-2021-budget-by-18-to-n12-7trn/

Reps Suspend Investigation into Chinese Loans
https://businesspost.ng/economy/reps-suspend-investigation-into-chinese-loans/

SMEs: Market Entry Strategies and Applicability in a Pandemic
https://businesspost.ng/featureoped/smes-market-entry-strategies-and-applicability-in-a-pandemic/

Zedvance Offers Zero-Interest Loans to Small Business Owners
https://businesspost.ng/brands-products/zedvance-offers-zero-interest-loans-to-small-business-owners/

Nigeria Closer to Getting Petroleum Industry Bill
https://businesspost.ng/economy/nigeria-closer-to-getting-petroleum-industry-bill/

NSE Adjusts Prices of MTN Nigeria, Flour Mills Shares
https://businesspost.ng/economy/nse-adjusts-prices-of-mtn-nigeria-flour-mills-shares/

CHI Plc Rights Issue Records 100% Subscription
https://businesspost.ng/economy/chi-plc-rights-issue-records-100-subscription/

Jumia Boosts Q2 Profit by 38% on Strong Financial Discipline
https://businesspost.ng/economy/jumia-boosts-q2-profit-by-38-on-strong-financial-discipline/

Lower Dollar Demand Lifts Naira at I&E Window
https://businesspost.ng/economy/lower-dollar-demand-lifts-naira-at-ie-window/

Fidelity Bank to File H1 2020 Earnings Next Week
https://businesspost.ng/banking/fidelity-bank-to-file-h1-2020-earnings-next-week/

Output Cuts: OPEC+ Records 97% Compliance in July
https://businesspost.ng/economy/output-cuts-opec-records-97-compliance-in-july/

By Adedapo Adesanya

Nigeria’s inflation hit a 27-month high of 12.82 per cent in July, 0.26 per cent higher than the 12.56 per cent recorded in June 2020.

This is the highest rate recorded since March 2018 when headline inflation was 13.34 per cent and it marked the 11th consecutive month of escalation as a weakened currency and continued border closures drove up food prices.

According to the National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) report for July 2020 released on Monday, the composite food index rose to 15.48 per cent from 15.18 per cent in the previous month.

This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers. It was affected by rises in the price of meat, fruits, oils and fats, and fish.

On a month-on-month basis, the food sub-index increased by 1.52 per cent in July 2020, up by 0.04 per cent points from 1.48 per cent recorded in June 2020.

The average annual rate of change of the food sub-index for the 12-month period ending July 2020 over the previous 12-month average was 14.63 per cent, 0.17 per cent points from the average annual rate of change recorded in June 2020 at 14.46 per cent.

Meanwhile, core inflation, which excludes the prices of volatile agricultural produce, stood at 10.1 per cent in July 2020 compared to 10.13 per cent recorded in June 2020.

Increases were recorded in all the Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index which increased by 1.25 per cent in July 2020. This is 0.04 per cent rate higher than the rate recorded in June 2020, 1.21 per cent.

According to the report, the percentage change in the average composite CPI for the 12 months period ending July 2020 over the average of the CPI for the previous 12 months period was 12.05 per cent, representing a 0.15 per cent point increase from 11.90 per cent recorded in June 2020.

The urban inflation rate increased by 13.40 per cent (year-on-year) in July 2020 from 13.18 per cent recorded in the previous month, while the rural inflation rate increased by 12.28 per cent in July 2020 from 11.99 per cent in June 2020.

On a month-on-month basis, the urban index rose by 1.27 per cent in July 2020, up by 0.04 from 1.23 per cent recorded in June 2020, while the rural index also rose by 1.23 per cent in July 2020, up by 0.04 from the rate recorded in June 2020, 1.19 per cent.

The corresponding 12-month year-on-year average percentage change for the urban index was 12.66 per cent in July 2020. This is higher than 12.50 per cent reported in June 2020, while the corresponding rural inflation rate in July 2020 is 11.49 per cent compared to 11.36 per cent recorded in June 2020.

https://businesspost.ng/economy/inflation-in-nigeria-escalates-to-12-82-in-july/

Inflation in Nigeria Escalates to 12.82% in July
https://businesspost.ng/economy/inflation-in-nigeria-escalates-to-12-82-in-july/

Flour Mills Sustains Strong Performance, Grows Q1’20 Profit
https://businesspost.ng/economy/flour-mills-sustains-strong-performance-grows-q120-profit/

SEC to Enlighten Investors on ‘Investing in Difficult Times’
https://businesspost.ng/economy/sec-to-enlighten-investors-on-investing-in-difficult-times/v

Market Participants Trade N13.9bn Stocks in Five Days
https://businesspost.ng/economy/market-participants-trade-n13-9bn-stocks-in-five-days/

NASD Posts 106.6% Weekly Jump in Trading Value
https://businesspost.ng/economy/nasd-posts-106-6-weekly-jump-in-trading-value/

Renewed Demand, Rising Supply to Impact Bullish Oil Trends
https://businesspost.ng/economy/renewed-demand-rising-supply-to-impact-bullish-oil-trends/

UBA Awaits CBN Approval for Interim Dividend, HY’20 Results
https://businesspost.ng/banking/uba-awaits-cbn-approval-for-interim-dividend-hy20-results/

Chapel Hill Denham Closes as Most Active Stockbroker
https://businesspost.ng/economy/chapel-hill-denham-closes-as-most-active-stockbroker/

Wapic Insurance Gets Regulatory Approvals for Bancassurance Model
https://businesspost.ng/economy/wapic-insurance-gets-regulatory-approvals-for-bancassurance-model/

Linkage Assurance Shareholders Accept to Get 2 billion Bonus Shares
https://businesspost.ng/economy/linkage-assurance-shareholders-accept-to-get-2-billion-bonus-shares/

Foreign Investor Increases Stake in Nigerian Breweries
https://businesspost.ng/economy/foreign-investor-increases-stake-in-nigerian-breweries/

Yuguda to Attend First CMC Meeting as DG August 20
https://businesspost.ng/economy/yuguda-to-attend-first-cmc-meeting-as-dg-august-20/

Investors Scramble for Nigerian Treasury Bills at 1.20%
https://businesspost.ng/economy/investors-scramble-for-nigerian-treasury-bills-at-1-20/

NAICOM Directs Foreigners to Produce Due Diligence for Key Positions
https://businesspost.ng/economy/naicom-directs-foreigners-to-produce-due-diligence-for-key-positions/

By Modupe Gbadeyanka

The huge appetite for treasury bills in Nigeria continued this week when the Central Bank of Nigeria (CBN) offered the debt instrument for sale.

On Wednesday, August 12, 2020, the apex bank was at the primary market to auction T-bills valued at N56.8 billion to market participants.

The investment tool was offered in three maturities like in the previous exercises; 91-day bill, 182-day bill and 364-day bill.

Details of the auction showed that the central bank offered for sale N19.8 billion of the 91-day tenor, N10.0 billion of the 182-day maturity and N27.0 billion of the 364-day tenor.

However, as it has happened in the past, investors were more than happy to pump their hard-earned money into the instrument despite its low-interest rate and rising inflation in the country.

According to the results of the exercise, the T-bills sales recorded a subscription level of 208.1 per cent as investors staked N118.2 billion on the N56.8 billion offered across the three tenors.

A breakdown showed that N30.6 billion was put on the three-month instrument, N31.1 billion was received for the six-month bill, while the 12-month instrument received N56.5 billion worth of the bids, indicating a subscription level of 154.6 per cent, 311.0 per cent and 209.3 per cent respectively.

But when the CBN was to the allotments, it sold N19.8 billion worth of the short-term note, N10.0 billion worth of the mid-term instrument and N27.0 billion worth of the long-term bill.

Business Post reports that while the stop rate for the 91-day bill was left untouched at 1.20 per cent, the rate for the 182-day bill was slashed to 1.39 per cent from 1.50 per cent, while the rate for the 364-day tenor was lowered to 3.20 per cent from 3.40 per cent.

The federal government has found a way to borrow funds locally at a very cheaper rate unlike in the past when the treasury bills were sold for almost 20.0 per cent.

The huge liquidity chasing the various government debt securities has made it possible for the rates to go down regularly.

According to analysts, with the way things are going, many investors would be willing to buy the government debt instruments at rates lower than one per cent.

https://businesspost.ng/economy/investors-scramble-for-nigerian-treasury-bills-at-1-20/

By Adedapo Adesanya  

Starting Thursday, August 20, all operators of e-hailing taxi services such as Uber, Bolt, among others will begin to pay the Lagos State Government 10 per cent service tax on each payment made by the passengers to the operators.

This will be in addition to some others contained in a document seen by Business Post titled e-taxi operation guideline, under which ride-hailing services will now be structured in the state.

This followed plans by the state to regulate the e-hailing transportation sector, a decision coming six months after it restricted operations of commercial motorcycles like MAX, Gokada, and ORide among others in the metropolis.

According to the document studied by Business Post, for service entities: taxi and app operators alike, they will be mandated to pay the stipulated tax among other monetary requirements implemented by the state.

From next Thursday, service entities in the city with less than 1,000 drivers are expected to pay an N10 million licence fee, while those with more than 1,000 drivers are to pay N25 million.

Subsequent renewals are pegged at N10 million for those with more than 1,000 drivers and N5 million for those with less.

As for operators with 50 cabs or less are expected to pay a N5 million licence fee with an annual renewal of N1.5 million, while those with more than 50 cabs are to pay N10 million with a renewal subscription of N3 million.

Other provisions provided by the guideline include the commencement of the renewal process three months before the expiration of the existing licence.

In addition, the drivers are expected to pay N5,000 fee to reaffix a taxicab license instrument, N5,000 fee to reorder and replace a taxicab license instrument and N5,000 fee to replace a taxicab license (hard card) card.

The Lagos State Government has also mandated a quarterly meeting with the Ministry of Transportation for operational updates and feedback.

It has also told operators of these e-hailing taxi services they must give the Ministry access to their database.

The state has also noted that all taxicabs must undergo a thorough inspection according to the State’s Road Traffic Law and under a special Taxicab inspection protocol. Accordingly, a brand-new vehicle must be used or in its stead, a vehicle within the first three years of its manufacture as specified by the manufacturer.

It directed that the capacity of the vehicle must not be less than 1.3cc, adding that it must also have a completed, signed, and dated safety features compliance form prescribed by the Ministry and must be equipped with a taximeter approved by the Ministry.

This new provision means that the Lagos state government will not only collect taxes but also collect licencing fees and then a percentage from every trip completed on these platforms.

https://businesspost.ng/auto/uber-others-to-pay-n25m-licence-fee-10-tax-per-ride/

Nigerian Capital Market Needs Access to Trading Liquidity—Stockbrokers
https://businesspost.ng/economy/nigerian-capital-market-needs-access-to-trading-liquidity-stockbrokers/

Stanbic IBTC Accuses Ascon Oil of Contempt of Court
https://businesspost.ng/banking/stanbic-ibtc-accuses-ascon-oil-of-contempt-of-court/

Reps Wade Into FIRS, NIPOST Stamp Duty Collection Spat
https://businesspost.ng/economy/reps-wade-into-firs-nipost-stamp-duty-collection-spat/

Uber, Others to Pay N25m Licence Fee, 10% Tax Per Ride
https://businesspost.ng/auto/uber-others-to-pay-10-service-tax-on-each-transaction/

By Dipo Olowookere

The federal government is asking for funds from low income earners in the country by auctioning the FGN savings bonds to them.

The papers were created by the government through the Debt Management Office (DMO) to ensure those earning very low can partake in the development of the nation.

In the past, low-income earners were allowed to purchase treasury bills from as low as N10,000, but the Central Bank of Nigeria (CBN), which normally sells the debt instrument, increased the lowest subscription amount to N50 million over three years ago.

It was after this development that the DMO created the FGN savings bonds to give room for Nigerians to invest in government debt securities for as low as N5,000.

In April 2020, the debt office suspended the sale of the notes due to restriction on movements in a few parts of the country in an effort to curb the spread of COVID-19.

However, because economic and business activities are gradually picking up after the lockdown was eased by the federal government, the DMO has resumed the FGN savings bond sales.

Subscription for the papers commenced on Monday and will end this Friday with the notes in two different tenors.

Business Post reports that the DMO is selling the 2-year FGN Savings Bond due August 12, 2022, at an interest rate of 3.61 per cent per annum.

Also, it will auction the 3-year FGN Savings Bond due August 12, 2023, at an interest rate of 4.61 per cent per annum.

For a better understanding of how the FGN savings bonds work, if an investor pays N100,000 for the 3-year maturity at 4.61 per cent per annum, he will get the sum of N1,152.50 every quarter (three months) for the next three years. At maturity, the initial amount paid for the bond, N100,000, will be credited into his account on August 12, 2023.

The DMO expects intending investors to pay N1,000 per unit for the notes subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

Investors can approach any authorised brokerage company to fill, submit the subscription form and make payment for the subscriptions with beneficiary name clearly indicated.

When the payment is confirmed by the stockbroker, the CSCS will credit the subscriber’s account with allocated FGNSB volume on the settlement date, which is Wednesday, August 19, 2020.

https://businesspost.ng/economy/fg-woos-low-income-earners-with-4-61-fgn-savings-bonds/

By Modupe Gbadeyanka

The federal government has said the blood service industry could become “a goldmine if explored” and turn to a “highly revenue generating” venture.

This was the view of the Minister of Health, Dr Osagie Ehanire, when he received members of the National Blood Transfusion Service (NBTS) led by its National Coordinator, Dr Joseph Amedu, recently.

The Minister said the commercialisation of the blood service industry was not a bad idea because Nigeria has a pool of donors more than Europe’s “with a huge population of 200 million with majority young people.”

“We have the materials right here, the masses. With global high demand for blood products, parts and proper blood fractionation, the [Blood Service] Commission will not only be self-sustaining but highly revenue generating, this is a goldmine if explored.”

He emphasised the need for a modernised blood transfusion service in Nigeria, stating that “the importance of blood transfusion service in the health system of a country is not something that we need to emphasize again”, in our country here, apart from a very high mortality rate, a large portion of which is very high, is ascribed to blood loss.”

According to him, “with a high portion of mortality rate in Nigeria, ascribed to blood loss especially around delivery – postpartum haemorrhage with a large amount of blood required for routine surgery, accidents, in trauma cases, chronic diseases like sickle cell anaemia which has a high prevalence in Nigeria, justify very well the need for the modernisation and creation of a Blood Service Commission.”

The Minister said the idea of having one million strategic blood reserve for the country was a good one, sighting the explosion that rocked Lebanon with a large number of people requiring blood transfusion.

“In a case where one is faced with such, with a reserve you have somewhere you reach into to take care of mass catastrophe and disasters,” he said.

Mr Ehanire informed his guests that the blood transfusion service has a huge potential, urging those who have the technology come up with suggestions and partnership because the “government will not have all the money; the idea of private partnership is highly recommended and welcomed.

“With South Africa being the most advanced country in Africa when it comes to transfusion science at the moment, a visit to learn from them will be worthwhile to know how it is organised and how to streamline blood testing and increase the parameters that are tested, to add more parameters.”

In his remarks, leader of the visiting team said some of the challenges faced by NBTS include lack of enabling legislation required to carry out regulatory function on blood safety practices, inadequate office accommodation, insufficient funds for its operational activities, late release of budgetary appropriation for program implementation resulting to low blood collection; late implementation and execution of scheduled activities; low public awareness and deep cultural myths and misconceptions on voluntary blood donation by the public.

https://businesspost.ng/health/blood-service-industry-could-generate-high-revenue-fg/

Why Lafarge Africa is Currently Undervalued—Analysts
https://businesspost.ng/economy/why-lafarge-africa-is-currently-undervalued-analysts/

Investors Gain N3.9bn Trading 1.6m Unlisted Stocks in 5 Days
https://businesspost.ng/economy/investors-gain-n3-9bn-trading-1-6m-unlisted-stocks-in-5-days/

Market Information Drives Trading in FBN Holdings, UAC Nigeria, Access Bank Stocks
https://businesspost.ng/economy/market-information-drives-trading-in-fbn-holdings-uac-nigeria-access-bank-stocks/

FCMB Sustains New Strengths in Q2
https://businesspost.ng/economy/fcmb-sustains-new-strengths-in-q2/

Subscription for August FGN Savings Bonds Begins Today
https://businesspost.ng/economy/subscription-for-august-fgn-savings-bonds-begins-today/

Wapic Insurance, Ikeja Hotel Hold AGMs This Week
https://businesspost.ng/economy/wapic-insurance-ikeja-hotel-hold-agms-this-week/

By Adedapo Adesanya

The federal government is proposing to spend the sum of N12.7 trillion in the 2021 fiscal year and to approve this, it has forwarded it to the Senate.

This was information was contained in the 2021- 2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) submitted to the Senate by President Muhammadu Buhari on Tuesday.

From the N12.66 trillion intended to spend next year, the administration of Mr Buhari plans to have the budget deficit of N5.2 trillion financed by N4.3 trillion to be borrowed from both local and international financial markets.

A breakdown showed that N481.4 billion is targeted from statutory transfers, N5.8 trillion as recurrent expenditure, N3.3 trillion for capital expenditure and N3.1 trillion for debt servicing.

The proposal included a crude oil benchmark of $40 per barrel, 1.86 million barrels as oil production per day and N360 to US dollar as exchange rate among others.

It also took into cognizance N500 billion intervention fund against COVID-19 pandemic, N52 billion for Public Works Programme, N32.5 billion for Social Intervention Programme (SIP), N5 billion as a bailout for the aviation sector and N60 billion for maintenance of roads through direct labour across the six geo-political zones.

In addition, the federal government is also targeting the sum of N205.2 billion from privatisation proceeds to fund the budget.

President Buhari in a letter attached to the documents sought the kind consideration and approval of the distinguished Senate the collective efforts to sustain the restoration of the January – December financial year.

“In line with our commitment, we have worked very hard to achieve an earlier submission of the MTEF/FSP. This is to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.

“I herewith forward the 2021 – 2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021 – 2023 MTEF/FSP.

“I seek the cooperation of the National Assembly for expeditious legislative action on the submission,” the letter said.

The President also used the opportunity to seek the confirmation of Mr Chukwuemeka Chukwu as Resident Electoral Commissioner representing Abia State.

https://businesspost.ng/economy/fg-to-borrow-n4-3trn-for-2021-budget-of-n12-7trn/

By Kester Kenn Klomegah

Over the years, high profiled politicians, academics and human rights groups have been talking about the armed attacks with its devastating effects on the economy in the Igbo-dominated South-Eastern States of the Federal Republic of Nigeria.

Nigeria gained its independence in October 1960. Since then, it has strongly witnessed the sharp division of Nigeria into three regions – North, West and East – and this factor has further exacerbated the well-developed economic, political, and social differences among ethnic groups.

The Igbo-dominated Eastern States have been struggling for peace and freedom necessary for development since the Civil War ended in 1970.

That was fought between the Government of Nigeria and the State of Biafra from July 1967 to January 1970. The Igbo leadership could no longer coexist with the Northern-dominated Federal Government. The Eastern River States are devastated, millions of the population deeply impoverished while resources remained untapped.

In this interview taken by Kester Kenn Klomegah, for instance, Professor Nathaniel Aniekwu, Secretary at the Alaigho Development Foundation [ADF] in Nigeria, vehemently argues that 50 years after the civil war, the growing threats and frequent attacks by northern ethnic groups and the deepening pitfalls in the federal governance system have negatively affected the development of Biafra.

The Alaigho Development Foundation is a registered NGO with the key aims of addressing development issues in Igboland, and further fight for justice, civil rights and good governance in Nigeria.

Here are the interview excerpts:

How would you argue that 50years after the Civil War [1967 to 1970], growing threats and frequent attacks by ethnic groups have affected the development, particularly in the Eastern States of Nigeria?

It is not rocket science that capital [money] is a coward and, therefore, does not go where there is insecurity. The Biafra/Nigeria Civil war never really ended. What happened 50 years ago was a transition of the war from open shooting battles to economic strangulation war which has translated into asymmetric herdsmen/terrorist-based war.

The initial morphed face of the war started in 1970 and was aimed at strangulating the region through infrastructural/economic deprivation. The federal government policy of offering 20 pounds in return for any amount of wealth deposits an Igbo person had in the bank, especially in the face of the 3Rs [Reconciliation, Rehabilitation and Reconstruction] program of re-establishing the region was not accidental. This was quickly followed by the Nigeria Enterprises Promotion Decree of 1972, which had as one of its main objectives to promote Nigerian indigenous enterprises with a view to increasing indigenous equity participation in the national economy. We were supposed to acquire this equity with the balance of the 20 pounds after feeding.

The current phase of the war is the herdsmen/terrorist-based war, which is aimed at destroying our agricultural base and make us completely dependent and then overrun and take over our ancestral lands. These are all orchestrated by the same people who could not wipe us out on the battlefields. The world community continuously watches the large-scale atrocities committed in the country.

As long as these wars are going on, Nigeria cannot know peace and, therefore, no real progress. The Eastern region is totally out of the equation from the pieces of evidence of our realities. Any progress in the Eastern region must be homegrown and organic. This is the real essence of the ADF’s “Aku ruo’ulo” program. Only the desperate and degenerate Chinese will have the temerity to want to invest in Nigeria, but with conditions that make it better for you to live without their investments.

How would you assess the overall economic development of the Biafra States?

The Biafra States are faring very well given the numerous and insurmountable challenges thrown at them. We have almost no federal presence in the region, no infrastructure, receive the least budget allocations and have the least representation in all the arms of the federal government. This is what has accounted for this current phase of the war. Ndigbos have indomitable spirits and cannot be rendered null and void economically, as long as they are alive.

The Government is, therefore, on their Plan C, which is physical annihilation and possessing their homelands. All economic indices show that in spite of the war against them, marginalization and exclusion from participation in the governance of Nigeria, the Biafra States continue to be very competitive and are very far from being worse off among the Nigerian States.

Do you think it could have been different if the Southeast or the River States were not under the administration of the Federal Government of Nigeria?

I don't think so, I know it. If they will let us be, even with all the deprivations and infrastructural neglect in place, Ndigbo will grow very quickly to become the go-to place for business. Our detractors know this much and that is what bothers them the most.

What are the economic potentials, especially for foreign investment?

The prognosis is very poor. Nobody goes for a swim in the desert. Only desperate investors still consider Nigeria as an investment destination for the earlier mentioned reasons. Although Nigeria is very richly endowed with natural and human resources, it has quickly lost all its shining advantages.

Moreover, whatever remains had been made in the past, has been squandered, especially as they seek to exclude Biafras from participation in political governance. They failed to deploy the appropriate resources, especially manpower, the broad-minded people who can guide and manage the development of the country, simply because most of them come from the Biafra States.

Under the current circumstances, how can the government make it easier to attract foreign investment to the region?

The bus has already left the station. The trust has been breached and the centre can no longer hold. As a Christian, I believe that nothing is impossible with God. But we are not God. We have squandered a lot of goodwill, which all developmental programs required.

Frankly speaking, only a dedicated team of experts can possibly do a lot, if all the impediments on our paths are removed, the trust deficit reversed, religion seizes to be so dominant in our decision-making process, the herdsmen/terrorists reign in, ethnicity seizes to be criteria for appointments and recognitions.

Furthermore, if the ethnic nationalities will come together and decide on the form and degree of association they will have in a restructured Nigeria, and the level of authority that should reside at the centre: if we shall confess and repent from our sins and seek forgiveness, then perhaps, we stand a chance of reversing the damage.

There are still a lot of challenges in achieving all that you have said above, but do you see any possibilities for national integration and a new leadership paradigm?

National integration is a very clear possibility, especially for The Biafra States. In fact, it is our only hope. Remember that Nigeria is made of many unwilling nations fused into the entity called Federal Republic of Nigeria (FRN). These nations have their inalienable right of association and with whomsoever they chose. These nations must choose their paths of integration.

For Ndigbo, not only that internal cohesion is imperative but also integrating into a union of the agreed is paramount. Leadership is very critical in attaining these objectives and this is where the paradigm shift is called for. Leadership must be looked from the point of view of the governed, at the micro-level of the society. A leadership that is organic and evolves from the people. Not a leadership foisted on the people by a band of degenerates.

A leadership paradigm shift is needed to look at the Igbo man as he is, what his essence is and then, try and appeal to that essence. Being Republican in his core essence means that you cannot lead him the same way you lead the Yorubas nor Hausas. A leadership that achieves this will have followership similar to what we had with Dr Nnamdi Azikiwe in the first republic or the followership General Odumegwu Ojukwu had during the war.

Note that the followership was so strong that during the war. Professor M. A. C. Odu and Ishiozo Mbu Amohuru went into the Nigerian territory, hijacked an aircraft and flew it down to Biafra. Such was the level of risks and sacrifices they could make.

Please note carefully that when the same General Ojukwu joined the NPN upon his return from exile, Ndigbo unfollowed him, because he no longer represented their aspirations. That is the Igbo man. Seen from this perspective, the Igbo man is very easy to lead as long as you the leader is ready to be transparent and represent their aspirations.

Does that mean there are weaknesses in the Federal System of Governance?

I am usually very wary of stereotyping. By my professional training, I seek for solutions where there are problems. I do not believe in looking for problems to fit into pre-existing solutions. I don't really care too much what you call the system that works: federal system, unitary system, monarchical system, et cetera.

I don't know if there is anything wrong with the federal system, but problems can arise as a result of the application of systems that are not suitable to the Nigerian environment. Obviously, the federal system of government is not working in Nigerian given the unique nature of the Nigerian political space. We must, therefore, return to the solution domain, seek long-term solutions that are organic [homegrown] and suitable to our environment.

What do you have to say about the next elections of the State Governors and the President?

I believe the forthcoming elections will be business as usual. There is nothing in the horizon that makes me think it will be different. The problems with election is part of the structuring problems bedevilling Nigeria, and unless Nigeria restructures, nothing will change. However, we are waiting when Nigeria will hit “Ground Zero”, then restructuring will become inevitable.

https://businesspost.ng/general/biafra-sets-the-alarm-clock-at-midnight-time-to-wake-up/

By Dipo Olowookere

The management of Ikeja Electric Plc has said it will implement the revised electricity tariff from Wednesday, July 1, 2020.

A statement from the leading electricity distribution company on Friday stated that the new tariffs will enable all the market players (generation, transmission, distribution and gas suppliers) in the Nigeria electricity supply industry cover cost of their operations and ensure improved service delivery.

According to IE, the new tariffs, which are service reflective, are end-user rates to be paid for electricity based on the level of service (including availability and reliability) provided to a cluster of customers.

It explained that henceforth, energy customers will now be categorised into maximum demand customers (MD) and non-maximum demand (non-MD) customers, and no longer the usual residential, commercial and industrial customer classes.

“All customers have now been clustered into different bands depending on the level of service currently being enjoyed,” the firm stated.

This, it stated, was in line with its Performance Improvement Plan (PIP) across the entire network in the coming months and years.

“The different service levels to all categories of electricity consumers will also be accompanied by a change in tariff which has taken into cognizance changes in macroeconomic indices in the country,” it added.

“The plan is for the sector to gradually make a transition to a full cost-recovery market where the cost of services provided will be fully recovered.

“Services are also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions based on the level of investments that will be attracted, going forward,” Ikeja Electric explained.

The electricity company noted that customers who are in the higher band currently being provided with good electricity supply will be expected to pay the true costs of the services being enjoyed, while customers who are within the lower band and are not receiving optimal services would be expected to pay a much lower tariff pending improvements in services and the movement to a higher tariff band reflecting improved service delivery.

“As usual, the company remains committed to bridging the metering gap and reducing the incidence of estimated bills. In recent times, we have doubled our efforts to realize our objective of metering our unmetered customers within the shortest possible time.

“We also note that complaints resolution by customers have been a concern in the past but this is set to improve as we move forward with this new tariff regime

“Lastly, this tariff implementation is subject to the approval of the regulator but it is necessary for performance improvement expected by customers,” Ikeja Electric, which thanked its customers “for your understanding,” stated in the statement.

https://businesspost.ng/general/ikeja-electric-customers-to-pay-new-tariffs-from-july-1/

By Adedapo Adesanya

South African retail franchise, Mr Price, has announced that it is leaving Nigeria due to weak economic growth, difficulties with repatriating funds and local procurement.

This was disclosed by the Chief Executive Officer (CEO) of the retail store, Mr Mark Blair, during the presentation of the group’s full-year results on Thursday.

According to the CEO, the company made money in the early days of their investment in the country but has now been hit by too many roadblocks.

He said as a result of these hoodwinks, it was time to exit Nigeria after walking away from Australia and Poland in 2019.

Mr Price, which reported a 10.4 percent fall in annual earnings, has closed four of its five stores in the country and expects to close the last one in the coming months, Mr Blair said.

“Quite frankly, I’m not prepared to invest any further whether it’s investment in time or in money into a country that is volatile as it is.

“In the early days, we were making money but now we just came up against too many roadblocks, whether it’s getting the money out, etc,” he said.

Before its entry into the country, Mr Price had expected the Nigerian market to support 50 to 100 stores because of its population, currently estimated at over 200 million but now, the Group said it is reviewing its franchise operations.

In recent years, Mr Price has taken a cautious approach to international expansion across and outside Africa as organic growth has proven challenging and “distracting”.

The company’s decision to exit Nigeria follows a decision by homeware and clothing retailer TFG last week to leave Kenya and Ghana.

According to its latest figures, Mr Price saw revenue in the year to March 28 rise 2.1 percent to 23 billion rands ($1.32 billion), with retail sales up by 1.5 percent, boosted by clothing and home divisions.

It also did not declare a dividend for the period in order to preserve cash.

The company said it has identified 300 million rands worth of cost-saving initiatives, which are largely related to employment costs and also include a 23 percent reduction in budgeted capital expenditure for the 2021 financial year, group CFO, Mr Mark Stirton said at the presentation.

https://businesspost.ng/brands-products/mr-price-exits-nigeria-over-fund-repatriation/

By Dipo Olowookere

The need for Nigerians to review/develop financial plans that will be in tune with the current realities has been emphasised by a renowned fund manager.

The Managing Director of EDC Fund Management Limited, a subsidiary of Ecobank Group, Mr Olufela Popoola, while speaking at an Ecobank Webinar held in Lagos last week, joined others to note that Nigerians must move from the realm of denial, anger and accept the reality of the ‘new normal’ occasioned by COVID-19 pandemic by properly articulating their goals and developing a financial plan based on available resources.

At the event themed Personal financial stability in a changing environment: achieving balance in the new normal, he pointed out that though commodity prices were stabilizing and stock markets were recovering globally, Nigeria was in recession mode with increasing inflation, pressure on the exchange rate and increased government borrowings.

He posited that individuals and businesses should worry less about the current realities, but start to think differently as they positively forge ahead.

Specifically, for individuals, he said it was time to carefully review their life’s goal and objectives and thereby; review/develop a financial plan, align this plan to the current financial realities and their expected future resources and ensure that these plans become a reality by having structured investment programmes to achieve same.

He submitted that, “To adapt and stabilise, rethink your business culture. Focus more on goals, not (necessarily) processes, listen more to customers and respond quicker, change working style –flexibility, study what competition is doing –be more professional, improve internal communication & information sharing and change working conditions to be more employee-oriented.

“This is not the time to procrastinate. Don’t think you have too little or too many funds to start a plan, but rushing to start an investment may not be the best for now.

“You need to consider risk, returns and time horizons. As a matter of fact, this is the time to speak to experts like us at the EDC Fund management. Investment options and plans include corporate bonds, government securities, private equity, Eurobonds, life insurance, real estate, commercial papers, and managed portfolio, among others.”

Another speaker at the programme, Mr Okey Okere, who is the Country Manager of Hofstede Insights Nigeria, made a case for people to rethink their lifestyle and business culture to adapt and stabilise under the ‘new normal’.

According to him, “there are countless speculations about changes to the whole world as we know it, but we can’t really tell how COVID-19 will change the world forever, what the ‘new normal’ will eventually be, how long it will last and the impact on the world, Nigeria, businesses and our personal finances. But one thing is sure, we need to make changes.”

Mr Okere listed the businesses that that are making gains despite COVID-19 pandemic as ICT services, e-commerce companies, personal care products, agriculture, food retailers and local delivery companies, adding that sectors such as aviation and shipping, consulting and professional services, education, financial services, manufacturing (non-essentials), real estate, automobile, and others are negatively impacted.

He counselled businesses to focus more on goals and not necessarily processes, listen more to customers and respond quicker, change working style, study what competition is doing, improve internal communication and information sharing and change working conditions, stressing that if the effects of the pandemic hurts too badly, there might be need to wind down the business entirely.

The Ecobank Webinar series is an initiative of Ecobank Consumer Banking Segment aimed at deepening conversation on the new normal for businesses and how an individual can harness new opportunities in the face of COVID-19.

https://businesspost.ng/economy/fund-manager-advises-nigerians-to-develop-structured-investment-plans/

Fund Manager Advises Investors to Develop Structured Investment Plans
https://businesspost.ng/economy/fund-manager-advises-nigerians-to-develop-structured-investment-plans/

Expert Urges SEC, NSE to Lower Listing Requirements
https://businesspost.ng/economy/expert-urges-sec-nse-to-lower-listing-requirements/

Sharp Rise in Nigeria's Debt to Revenue Ratio Worries Fitch
https://businesspost.ng/economy/sharp-rise-in-nigerias-debt-to-revenue-ratio-worries-fitch/

Guinness Nigeria Assures Investors Improved Performance
https://businesspost.ng/economy/guinness-nigeria-assures-investors-improved-performance/

IMF Says Nigeria's GDP to Shrink 5.4% in 2020
https://businesspost.ng/economy/imf-says-nigerias-gdp-to-shrink-5-4-in-2020/

Nigeria's Crude Export Drops 30.9% in March
https://businesspost.ng/economy/nigerias-crude-export-drops-30-9-in-marchnigerias-crude-oil-and-gas-export-fall-30-9-in-march-2020/

ABCON Raises Alarm Over Forex Supply Shortage from CBN
https://businesspost.ng/economy/abcon-raises-alarm-over-forex-supply-shortage-from-cbn/

Fidelity Bank Announces Cut to Savings Interest Rates
https://businesspost.ng/banking/fidelity-bank-reduces-savings-interest-rates/

Experts Seek Reorganization of Nigeria's Financial Market Structure
https://businesspost.ng/economy/experts-seek-reorganization-of-nigerias-financial-market-structure/