₦airaland Forum

CBN Sells N53b Treasury Bills Via Secondary Markets
https://www.businesspost.ng/2017/10/01/cbn-sells-n53b-treasury-bills-via-secondary-markets/

Capital Market Fraud: Court Grants Bail to Banned Stockbroker
https://www.businesspost.ng/2017/09/29/capital-market-fraud-court-grants-bail-banned-stockbroker/

Nigeria’s Manufacturing PMI Grows 6th Consecutive Month to 55.3 in September
https://www.businesspost.ng/2017/09/28/nigerias-manufacturing-pmi-grows-6th-consecutive-month-55-3-september/

Consolidated Hallmark Insurance Begins N500m Share Sale Oct 16
https://www.businesspost.ng/2017/09/28/consolidated-hallmark-insurance-begins-n500m-share-sale-oct-16/

Nigeria Raises N243.8b from N135b Bond Exercise
https://www.businesspost.ng/2017/09/28/nigeria-raises-n243-8b-n135b-bond-exercise/

GTBank Board Meets October 18 to Review Q3 Earnings
https://www.businesspost.ng/2017/09/27/gtbank-board-meets-october-18-review-q3-earnings/

Nigeria’s Multiple-Forex Regime Unsustainable—BMI Research
**FX Liquidity Will Boost Investor Sentiment
https://www.businesspost.ng/2017/09/27/nigerias-multiple-forex-regime-unsustainable-bmi-research/

Reps Order SEC to Complete Oando Probe in 2 Weeks
https://www.businesspost.ng/2017/09/27/reps-order-sec-complete-oando-probe-2-weeks/

Bukar Now Chairs Senate Committee on Capital Market
https://www.businesspost.ng/2017/09/27/bukar-now-chairs-senate-committee-capital-market/

Another Economic Crisis Looms over CBN “Reckless Funding of FG”
https://www.businesspost.ng/2017/09/26/another-economic-crisis-looms-cbn-reckless-funding-fg/

Another Economic Crisis Looms over CBN “Reckless Funding of FG”
https://www.businesspost.ng/2017/09/26/another-economic-crisis-looms-cbn-reckless-funding-fg/

Another Economic Crisis Looms over CBN “Reckless Funding of FG”
https://www.businesspost.ng/2017/09/26/another-economic-crisis-looms-cbn-reckless-funding-fg/

BREAKING: As Expected, CBN Retains Benchmark Rates at 14%
https://www.businesspost.ng/2017/09/26/breaking-expected-cbn-retains-benchmark-rates-14/

Panic as CBN Probes Bank MDs, Directors over Huge Non-Performing Loans
https://www.businesspost.ng/2017/09/26/panic-cbn-probes-bank-mds-directors-huge-non-performing-loans/

BREAKING: As Expected, CBN Retains Benchmark Rates at 14%
https://www.businesspost.ng/2017/09/26/breaking-expected-cbn-retains-benchmark-rates-14/

Panic as CBN Probes Bank MDs, Directors over Huge Non-Performing Loans
https://www.businesspost.ng/2017/09/26/panic-cbn-probes-bank-mds-directors-huge-non-performing-loans/

BREAKING: As Expected, CBN Retains Benchmark Rates at 14%
https://www.businesspost.ng/2017/09/26/breaking-expected-cbn-retains-benchmark-rates-14/

Panic as CBN Probes Bank MDs, Directors over Huge Non-Performing Loans
https://www.businesspost.ng/2017/09/26/panic-cbn-probes-bank-mds-directors-huge-non-performing-loans/

Stock Watch: Recommendations for the Week (September 25)
https://www.businesspost.ng/2017/09/25/stock-watch-recommendations-week-september-25/

CBN Moves to Formally Legalise Crypto Currency in Nigeria
https://www.businesspost.ng/2017/09/25/cbn-moves-formally-legalise-crypto-currency-nigeria/

Triaconta Unveils New Safe Way to Invest in Cryptocurrencies
https://www.businesspost.ng/2017/09/25/triaconta-unveils-new-safe-way-invest-cryptocurrencies/

The Listing of Money Trade Coin on Cryptocurrency Exchange & Rising Promise of New Era in Dubai
https://www.businesspost.ng/2017/09/25/listing-money-trade-coin-cryptocurrency-exchange-rising-promise-new-era-dubai/

Triaconta Unveils New Safe Way to Invest in Cryptocurrencies
https://www.businesspost.ng/2017/09/25/triaconta-unveils-new-safe-way-invest-cryptocurrencies/

CBN Moves to Formally Legalise Crypto Currency in Nigeria
https://www.businesspost.ng/2017/09/25/cbn-moves-formally-legalise-crypto-currency-nigeria/

The Listing of Money Trade Coin on Cryptocurrency Exchange & Rising Promise of New Era in Dubai
https://www.businesspost.ng/2017/09/25/listing-money-trade-coin-cryptocurrency-exchange-rising-promise-new-era-dubai/

CBN Sells N173.37b Treasury Bills as NIBOR Rises Amid Financial System Liquidity Strain
https://www.businesspost.ng/2017/09/23/cbn-sells-n173-37b-treasury-bills-nibor-rises-amid-financial-system-liquidity-strain/

By Dipo Olowookere

A report by PwC titled ‘Entertainment and Media Outlook: 2017 – 2021: An African Perspective’ has revealed that during the period under review, Nigeria will contribute about $2.8 billion to the Entertainment and Media industry.

According to the report, “In terms of total E&M revenue, Nigeria is one of the fastest-growing countries in our Outlook, but this figure must be treated with caution, as a huge proportion of that growth comes from Internet access revenue alone–specifically mobile Internet access revenue.

“Of the $2.8 billion that the Nigerian market will add between 2016 and 2021, all but $452 million will come from Internet access revenue. The combined elements of TV and video will add nearly $200 million in revenue growth to 2021.”

PwC, in the report, explained that the Outlook was a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana and Tanzania) and 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business publishing, music, out-of-home, and radio.

The report further pointed out that it observed significant shifts are underway in how Africa’s E&M companies compete and generate value, as the quality of the experience they deliver to consumers becomes their primary basis for strategic differentiation and revenue growth.

To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.

It said for Kenya, “The E&M industry was worth $2.1 billion in 2016, up 13.6 percent on 2015. Revenue is forecast to grow at an 8.5 percent CAGR over the next five years, hitting the $3 billion mark in 2020, and totalling $3.2 billion in 2021.

“Internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021.”

However for Ghana, its E&M industry is beginning to gear up.

“In 2012, total revenue was just at $214 million, but four consecutive years of year-on-year growth above 25 percent have led it to revenues of $685 million in 2016. This is forecast to more than double over the next five years, with revenues of $1 billion being surpassed in 2019 and a total of $1.5 billion forecast for 2021, thanks to a 16.5 percent CAGR,” the report stated.

According to PwC, “Tanzania’s total E&M revenue stood at $504 million in 2016, but is set to more than double to $1.1 billion in 2021, a 17.2 percent CAGR over the coming five years.

“The symbolic crossing of the $1 billion mark is set to occur in 2021. This is significant growth from 2012 where the industry stood at just $175 million.”

The report, in its analysis of the South African market, said by 2021, total E&M revenue in the country is expected to reach R177.9 billion (about $13.4 billion), up from R132.7 billion in 2016.

It noted that internet access remains the key growth driver and will account for R27 billion of this increase.

The fastest growing sectors will be virtual reality (VR) and e-sports compounded annually at 72.6% and 39.6%, although these segments are still new revenue lines and remain the smallest in terms of absolute revenue numbers. Although overall growth in revenue will hold up, it is expected to slow down by the end of 2021.

“Companies that wish to capture value amid shifting consumer preferences and business model disruptions must focus on an increasingly prominent source of competitive advantage: the user experience. They must harness technology and data to attract, retain and engage users–and convert them into devoted fans,” says Vicki Myburgh, Entertainment and Media Industry Leader for PwC Southern Africa. These imperatives assume a larger importance because, as we document in the Outlook, the entertainment and media industry is confronting several challenges to continued top-line growth.

Digital spend will continue to drive the overall growth. Nearly 40% of total spend will be derived from Internet access in revenue. South Africa’s mobile Internet penetration is forecast to rise to 77.8% by the end of 2021 from 52.3% in 2016. This increased Internet penetration will drive mobile Internet access revenues, which are projected to grow by a CAGR of 10.7% to nearly R62 billion.

South Africa can expect a CAGR of 7.2% for consumer revenue over the forecast period, rising from R87.4 billion in 2016 to R123.7 billion in 2021. The largest contributor will be Internet access, with a 48% share in 2016 rising to 56% in 2021.

South Africa continues to remain the largest TV market on the African continent, with total revenues of R40.9 billion in 2016. The total TV market is estimated to be worth R51.2 billion by 2021. At this time, end-user spending (Pay-TV subscriptions, physical and Internet home video and license fees) will account for 56.7% of the total TV market.

The video game market is also performing well and revenue is forecast to grow at a CAGR of 15.4% to reach R5.4 billion in 2021, up from R2.6 billion in 2016. The primary growth driver in the video games market is social/casual gaming revenue, which will be worth R3.7 billion by 2021. Furthermore, the console and PC markets are experiencing a significant shift towards digital and online/micro transaction revenue, which will exceed physical sales for the first time in 2020.

The growing interest in gaming is helping to fuel the rapid growth in the related segment of VR and e-sports. As a segment that only reached consumers in 2016, almost the entire VR market is new. According to the Outlook, the consumer VR content market will be worth R455 million by 2021. Of this, R282 million will be spending on VR video.

Alongside video, the B2B market is showing continued growth. In 2016 revenues grew by 3.8% to R9.7 billion and by 2021 this is forecast to rise to R11 billion, a CAGR of 2.6%. The slowdown in growth is largely attributable to ongoing macroeconomic challenges which are likely to weigh on B2B revenues.

The South African cinema sector currently presents a mixed picture. Overall revenue, including box office and cinema advertising, is expected to reach R2.2 billion in 2021, up from R1.9 billion in 2016. South Africa continues to be an attractive destination for international filmmakers. Although some short-term economic and political issues are impacting the film sector, it is expected in the long term to continue to expand.

South Africa’s music industry is on a growth curve with live music being a key driver. Live music revenue is expected to rise from R1.2 billion in 2016 to R1.7 billion in 2021, a CAGR of 7.4% over the forecast period.

It is notable that only one digital subcomponent is seeing a significant decline in the entire Outlook – digital music downloading revenue, which is forecast to see a -15.7% CAGR, as consumers shift from ownership to access. Digital music streaming revenue is forecast to rise at a CACR of 34.5% to 2021, reaching R518 million in that year. This growth rate is only beaten by new revenue lines from VR and e-sports.

Among the largely non-digital segments, magazines and newspaper revenue are set to continue their decline. Total newspaper revenue in the South African newspaper market has been unpredictable. The market showed growth in 2013, declined in 2014 and bounced back marginally in 2015, contracting at a slower rate. In 2016, total newspaper revenue was worth R8.9 billion, but this figure is forecast to drop to R7.4 billion in 2021. Marginal growth is expected for the book publishing industry over the next five years. The educational book market will contract by a -0.1% CAGR. On the contrary, professional titles and consumer books will exhibit some growth as e-book revenues continue to grow.

The report shows that South Africa’s total entertainment and media advertising revenue is expected to rise to R54.2 billion by 2021 from R45.3 billion in 2016, representing a 3.7% CAGR. TV advertising remains dominant, but in terms of absolute growth it is Internet advertising that is almost an equal contributor, helped by a sizeable 12.9% CAGR.

Myburgh says: “It is clear that something fundamental has changed in the entertainment and media industry. E&M companies that have become accustomed to competing and creating differentiation, based primarily on content and distribution, need to focus more intensely on the user experience. The marketplace has increasingly become more competitive, slower-growing and dependent on personal recommendations.

“Thriving in this new world of intense competition and continual disruption will be challenging. The opportunities are, however, immense. Across the industry, the resulting quest to create the most compelling, engaging and intuitive user experiences is now the primary objective for growth and investment strategies, with technology and data at the centre.

“Accordingly, companies will need to develop strategies to engage, grow and monetise their most valuable customers: their fans.”

https://www.businesspost.ng/2017/09/23/nigeria-will-add-2-8b-kenya-3-2b-sa-13-4b-em-sector-2021-report/

Lafarge Announces Closed Period as Board Meets Tuesday
https://www.businesspost.ng/2017/09/22/lafarge-announces-closed-period-board-meets-tuesday/

GCR Affirms A-(NG Rating on Transcorp Hotels
https://www.businesspost.ng/2017/09/22/gcr-affirms-a-ng-rating-on-transcorp-hotels/

GCR Assigns BBB(NG) Rating to Fortis MFB’s N10b Bonds
https://www.businesspost.ng/2017/09/22/gcr-assigns-bbbng-rating-fortis-mfbs-n10b-bonds/

Sale of FG’s N100b Sovereign Sukuk Closes Today
https://www.businesspost.ng/2017/09/22/sale-fgs-n100b-sovereign-sukuk-closes-today/

Any Rate Cut by MPC Will Lead to Negative Real Yield—FSDH
https://www.businesspost.ng/2017/09/21/rate-cut-mpc-will-lead-negative-real-yield-fsdh/

By Modupe Gbadeyanka

Some former workers of the defunct Nigerian Airways are in jubilation mood and the reason is not far-fetched.

On Wednesday, after the Federal Executive Council (FEC) meeting in Abuja, the Minister of State for Aviation, Mr Hadi Sirika, told newsmen that government has approved N45 billion for the payment of their entitlements.

Nigerian Airways was liquidated in 2003 by the President Olusegun Obasanjo administration and in 2006, an Inter-Ministerial Committee was set up by the Federal Government.

The panel later recommended the sum of N78 billion as the total severance package for 10 years for the workers, including pension arrears for the period after the physical verification of about 6,000 beneficiaries.

However, the Presidential Initiative on Continuous Audit (PICA) later set up by the present administration of President Muhammadu Buhari in its recommendation slashed the sum to just N43 billion, a 45 percent reduction, a move that did not go down well with the Minister of State for Aviation, Mr Hadi Sirika, who insisted that the earlier approved sum of N78 billion must be paid to the beneficiaries.

It was earlier thought that the N78 billion would be paid to the former workers, but the latest development has indicated that they will only receive N45 billion.

The Minister, yesterday, disclosed that at the FEC meeting on Wednesday presided over the Vice President, Mr Yemi Osinbajo, would give N45 billion to the ex-workers of the defunct Nigerian Airways as their severance package.

Business Post gathered that this news has been welcomed by most former employees of the defunct national carrier.

Some of the workers who spoke with our correspondent in Lagos expressed their joy over the development.

“We are very happy about this news, it is one of the best we have heard in recent times,” most of them echoed.

Business Post has reliably gathered that some of the former workers would be meeting on Friday, where the issue would be further discussed.

https://www.businesspost.ng/2017/09/21/jubilation-fg-okays-n45b-former-nigerian-airways-workers/

Nigeria’s Sovereign Wealth Fund Now Over $2b—Orji
https://www.businesspost.ng/2017/09/20/nigerias-sovereign-wealth-fund-now-2b-orji/

Finance Ministry Approves Life Ban on Stockbroker by SEC
https://www.businesspost.ng/2017/09/19/finance-ministry-approves-life-ban-stockbroker-sec/

Forte Oil Suspends Plans to Raise N20b Via Book Building
https://www.businesspost.ng/2017/09/19/forte-oil-suspends-plans-raise-n20b-via-book-building/

Direct Cash Settlement Will Boost Investors’ Confidence—NSE
https://www.businesspost.ng/2017/09/19/direct-cash-settlement-will-boost-investors-confidence-nse/

Stocks to Watch Out For This Week
https://www.businesspost.ng/2017/09/19/stocks-watch-week/

CBN to Sell N140.9b Treasury Bills Thursday
https://www.businesspost.ng/2017/09/19/cbn-sell-n140-9b-treasury-bills-thursday/

DMO to Auction N135b Bonds Next Wednesday
https://www.businesspost.ng/2017/09/19/dmo-auction-n135b-bonds-next-wednesday/

Growth in Money Supply Falls Below Targets
https://www.businesspost.ng/2017/09/19/growth-money-supply-falls-targets/

DMO to Auction N135b Bonds Next Wednesday
https://www.businesspost.ng/2017/09/19/dmo-auction-n135b-bonds-next-wednesday/

Growth in Money Supply Falls Below Targets
https://www.businesspost.ng/2017/09/19/growth-money-supply-falls-targets/

By Modupe Gbadeyanka

Negative sentiments still persisted on the trading floor of the Nigerian Stock Exchange (NSE) today amid tension in the South Eastern part of the country caused by the deployment of troops to the region for the Operation Python Dance II exercise by the Nigerian Army.

The army started the exercise last Friday to clampdown on members of the Indigenous People Of Biafra (IPOB) led by their leader, Mr Nnamdi Kanu, who want to break away from the country. The military intervention has however received mixed reactions.

But at the resumption of transactions on the floor of the NSE on Monday, bears still held their grip on the market, closing 0.38 percent lower to reduce the year-to-date gain to 29.76 percent.

Business Post recalls that last Friday, the stock market lost 1.84 percent at the close of activities with investors losing N226 billion.

Today, the market capitalisation further went down by N46.5 billion to settle at N12 trillion, while the All-Share Index (ASI) depreciated by 132.50 points to close at 34,873.07 points.

The market, which closed with 14 advancing stocks and 18 depreciating equities, saw Seplat emerging the heaviest decliner, crashing by N24.3k to finish at N456.76k per share.

It was followed by Nigerian Breweries, which fell by N5 to close at N170 per share, and Presco, which slumped by N2.49k to end at N58 per share.

Lafarge declined by 97k to settle at N49 per share, while Oando lost 30k of its share value to finish at N5.75k per share.

On the flip side, GTBank topped the gainers’ chart with N1 growth to close at N38 per share, while Cadbury moved up by 49k to finish at N11 per share.

Furthermore, Newrest ASL Nigeria (Air Service) grew by 32k to end at N6.82k per share, Stanbic IBTC advanced by 30k to finish at N39.50k per share, and Ecobank increased by 20k to close at N18 per share.

Though the volume of shares traded by investors slightly went up today, the value went down by 50 percent as a total of 162.7 million equities exchanged hands today in 3,225 deals worth N1.5 billion against 160 million shares transacted last Friday in 3,367 deals valued at N3 billion.

A breakdown of these transactions showed Access Bank emerging the most traded stocks in terms of volume, exchanging 35.4 million units worth N354.2 million.

It was trailed by Meyer, which moved 18.9 million shares valued at N13.2 million, and Fidelity Bank, which transacted 18.6 million shares valued at N24 million.

FBN Holdings traded 13.8 million shares at N75.7 million, while FCMB exchanged 12.6 million shares valued at N13.2 million.

https://www.businesspost.ng/2017/09/18/nigerian-stock-market-in-python-dance-mood-further-falls-by-0-38/