₦airaland Forum

Saudi Arabia will invest about $25 billion in Africa by the end of the decade as part of its Vision 2030 plan to overhaul its economy, Saudi Press Agency reports.

This comes as Nigeria says it sees “immediate” multi-billion-dollar investment flows from Saudi Arabia after it signed an agreement with the kingdom following the first Saudi-Africa Summit which started on Friday.

More than 50 deals and preliminary agreements were signed during the summit in various fields including tourism, energy, finance, mining and logistics, SPA said.

Nigeria, Africa’s largest economy sealed deals with Saudi Arabia during the summit, that included agriculture, oil and gas, energy, telecommunications and technologies sectors.

The Nigerian government said the agreements include channeling Saudi Arabian investments to the West African country’s oil refineries to revamp them, and to reestablish a Nigeria- Saudi Arabia Business Council.

Africa’s Global Bank, United Bank for Africa (UBA) Plc, and Saudi Export-Import Bank (Saudi EXIM), a premier export credit agency in the Kingdom of Saudi Arabia, also announced a partnership aimed at strengthening business growth and enhancing economic cooperation between their economies.

To this end, both institutions signed a Memorandum of Understanding (MoU) on November 9, 2023, to foster economic cooperation and trade relations between the two entities.

Leaders who attended the summit included presidents and prime ministers with each calling calling for more Saudi investments and economic ties at both bilateral and multilateral levels.

Saudi exports to the continent worth $10 billion will be financed and insured through 2030, and the Saudi Fund for Development will finance development projects worth about $5 billion in the same time frame, the Saudi News Agency added.

Earlier, the oil rich middle eastern country said on Saturday it is finalizing investment plans within a week that will see the officials of the kingdom closing several deals when they visit Nigeria by the end of December.

“We know you are ready for business, so we do not want to come to Nigeria for any exploratory discussion. We are coming for implementation, it’s an action visit. It will be to sign and begin delivery on all agreements,” Saudi Kahlid El-Falih, Arabia’s trade and investment minister told Nigeria’s President Bola Tinubu during the business round-table.

https://moneycentral.com.ng/markets/article/saudi-arabia-to-invest-25-billion-in-africa-as-nigeria-sees-immediate-inflows/

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Nigeria’s cocoa exporters are smiling to the bank as cocoa prices are trading just shy of USD 4,000 a tonne, the highest level since November 1978. It is 14% higher on the month and 54% on the year.

Nigeria is the world’s fifth-largest producer of Cocoa, and produced an estimated 280,000 metric tons of Cocoa last year, according to Statista.

According to Bloomberg, harvests in Ivory Coast and Ghana – some of the world’s largest cocoa producers – are producing lower crop yields, which has led to tighter supplies, therefore supporting higher prices.

“The market does not seem convinced that production will recover enough to avoid a supply deficit for 2023/24,” ADM Investor Services Inc. analysts said in a note.

There is also an increasing risk that El Nino-induced weather disturbances could cause the global cocoa market to sink into a deficit for the third year.

Ivory Coast government data on Monday showed Ivory Coast farmers shipped 288,686 MT of cocoa to ports from October 1-November 5, down -17.3% from the same time last year. The Ivory Coast is the world’s largest cocoa producer.

Also, ICE-monitored cocoa inventories held in U.S. ports have declined steadily since June and posted a 2-1/2 year low on Friday.

Recent heavy rain in West Africa has caused black pod disease to spread and is a major bullish factor for cocoa prices.

The spread of the disease, which causes cocoa pods to turn black and rot, could result in lower cocoa crop quality and production and push the global cocoa market into a third year of deficit for the 2023/24 season.

Earlier this week, Oreo-maker Mondelez International said it would have to hike prices on some of its products due to the soaring cocoa and sugar prices.

https://moneycentral.com.ng/exclusive/article/nigeria-exporters-smile-as-cocoa-prices-hit-4000-per-ton-highest-since-1978/

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AFEX Investment Limited or AFIL SPV Plc is in the market for its Series 3 Asset-Backed Commercial Paper (ABCP) issuance of up to N45 billion under its N100 billion Programme.

The programme which is 50% guaranteed by AFEX Commodities Exchange Limited is open and scheduled to close on 16 November 2023.

The Asset-Backed Commercial Paper (ABCP) is a short-term, senior secured debt instrument collateralized by a variety of commodities, backed by AFEX-issued warehouse receipts.

The product is intended to provide low-cost financing to small-size Agro-commodity processors who are unable to directly raise capital in the conventional commercial paper markets.

For potential investors in the issue, MoneyCentral believes there’s little incentive to invest in the Asset backed notes as opposed to comparable Nigeria Government Treasury Bills with negligible risk premium (extra yield) available on the AFEX Asset-Backed Commercial Paper.

The Offer

AFIL SPV Plc intends to issue up to N45 billion in four tranches (Tranches A – D) as part of a Series 3 Issuance as conventional or Shari’ah Notes either as a single tranche or in multiple tranches of not more than 270 days under the ABCP Issuance Programme in line with the existing transaction structure.

The proceeds of the conventional CP Notes to be issued under the Series 3 ABCP Programme shall be domiciled with the Custodian.

Processors/Obligors will purchase commodities and deliver same to the Collateral Manager at an accredited AFEX warehouse, wherein the Collateral Manager will issue electronic warehouse receipts (e-WR) for the stored commodities which shall be pledged to AFIL or Custodian.

Furthermore, the Custodian will disburse the cash equivalent of the pledged commodities to the obligors.

Under the Shari’ah-compliant Murabaha Notes structure, the Issuer will purchase the commodities on request from the processors (and deposit with the Collateral Manager at designated warehouses) and resell them to the Processors at an agreed price consisting of the purchase price and markup.

Risk points identified by MoneyCentral

Market Risk

The Issuer (AFEX Investment Limited) and Sponsor (AFEX Commodities Exchange Limited) say they have entered negotiations with some of the leading agro-processing companies in Nigeria. These Processors will be the end-users of the Issue proceeds, as they will purchase volumes of grains for processing in their businesses and will repay the funds borrowed from operating cash flows.

The Processors have to have Minimum shareholders’ funds of N500m, 10,000 metric tons (MT) of processing capacity (per annum), clean credit report, and minimum of 5 years of operation.

Processors prequalified for the issue include Amo Byng Farms Limited with after-tax profit of N131.99m in 2020, Animal Care Services Konsult Ltd (N604.5m profit), Hillcrest Agro-allied Industries Limited (N1.92bn profit), and Golden Oil (N131.99m profit).

Risk: Since these 4 operators/obligors are to repay the funds borrowed from their operating cash flows, looking at their financials, MoneyCentral believes that their profitability and margins will have to rise sharply to enable them pay off a total of N45 billion plus interest from the issuance.

This however seems highly unlikely in the low margins agro-processing industry.

The Issuer and Sponsor Financials

The Issuer (AFEX Investment Limited) had EBITA of only N710 million as at June 2023, and profit after tax of N176.5 million for the period.

Interest expense for AFIL came in at N2.92 billion in just 6months signaling a high level of indebtedness already.

AFEX Commodities Exchange Limited which is the main Sponsor of the issuance made a loss of N263.2 million in 2021 (the most recently available financial year) per issue documents seen by MoneyCentral.

Risk: Gross margins of only 4.76% and finance cost of N2.217 billion adds to the risk that AFEX Commodities Exchange Limited may be unable to bail out investors (up to the agreed 50%) in the unlikely chance of a default by the issuer or obligors.

AFEX Commodities Exchange Limited also had outstanding borrowings of N67.69 billion for the period.

Business model

An analyst with deep knowledge of the industry speaking on condition of anonymity told MoneyCentral that the AFEX Commodities Exchange Limited business model does not look sustainable for an Exchange.

“No Commodities Exchange operates that way successfully and I don’t think they will. An Exchange is a market place, and they need to create the ecosystem and allow participants to run the race, not bringing themselves into being the participants and the Exchange. They are merely running as a commodities dealer and not Exchange and incidentally they don’t even have the capacity to run the model. They are at best an adaptation of Baban Gona (Kola Masha’s business) with a different flavor,” the analyst said.

Concerning the N45 billion Asset-Backed Commercial Paper issuance, another source said: “FSDH that is running the transaction as Lead Arranger won’t put money in the Notes.”

Ratings agency warning

Agusto & Co. in a rating report on the AFIL SPV N100 billion Asset-Backed Commercial Paper programme, released this year, affirmed the “S3sf” rating of the issuance but warned that:

“we remain concerned about the absence of external liquidity support to fund the commodities exposure in a stressed scenario given the extreme liquidity requirements of ABCP Programmes.”

Conclusion

The up to N45 billion in Asset-Backed Commercial Paper being issued by AFEX Investment Limited or AFIL SPV Plc, while innovative is a little bit too risky for all but the most sophisticated investors in our opinion.

With an implied yield ranging from 17.50% – 18.50% for the 4 trances (A – D), Investors may be better served buying risk-free 364DAY Nigeria Treasury Bills yielding 16.75% in the primary market.

https://moneycentral.com.ng/exclusive/article/why-afex-n45bn-asset-backed-commercial-paper-is-risky-for-investors/

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Retail lender, Unity Bank Plc has recorded gross earnings of N38 billion for the nine-month period ended September 30, 2023, with customer deposits appreciating by 5% to N344.4 billion within the period, an indication of business growth and customer confidence in the Bank.

A review of the lender’s unaudited nine-month results released to the Nigerian Exchange Group Limited showed that the Bank continued to maintain its expansionary and customer-centric model with total loans and advances rising to N222.8 billion, even as interest and similar income stood at N33 billion, which underscores the Bank’s strategic focus to reinvigorate and sustain asset creation that will deliver returns to shareholders.

Other key highlights of the 9-month financials include the total assets which stood at N423.4 billion; net fee and income commission, N4.4 billion within the period. However, the recent FX regulation impacted the Bank’s bottom line, a situation that can be reversed as the Naira appreciates.

Commenting on the result, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun said that the Bank is focusing on its efforts to recapitalize the institution, aggressively drive asset creation, innovate with products to compete favourably in new markets and relentlessly drive pursuit of digital Banking innovation in order to shake off and completely reverse negative positions.

She stated that despite the tough operating environment, the deposit position continues to witness steady appreciation which supports the business as the Bank drives initiatives to ramp up transactions as part of its strategy for the short and medium term.

“This also means that the Bank enjoys market confidence which will enable the institution thrive better in the months ahead with increased business conversion, profitability and growth needed to achieve sustainable returns,” she said.

Added to the above, Somefun also stated that “the Bank is seeing encouraging uptake in its digital Banking services and with expansion envisaged in the pursuit of enhanced retail franchise, fintech partnership, consumer banking and other innovative retail loans as well as diversification of portfolio investment, the outlook remains one of optimism.’’

Analysts expressed the confidence that re-engaging the market in the short and medium term by deepening the retail end of the market as part of the business strategy will drive more income streams to boost both market share and financial position in the days ahead.

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MTN Nigeria has commenced the reconstruction of the dilapidated Enugu-Onitsha Expressway.

“We advanced our corporate social investment programme with the commencement of the rehabilitation of the Enugu-Onitsha Expressway under the Federal Government’s Road Infrastructure Tax Credit (RITC) scheme,” MTN Nigeria CEO, Karl Toriola said in notes accompanying its 9-months (Q3), 2023 financial statement.

“We are excited about the impact the project will have’ on the lives of Nigerians once completed. The tax credit arising from this investment will enable us to offset future tax liabilities.”

MTN Nigeria had earlier prepaid the sum of N12.032 billion, towards the reconstruction of the Enugu-Onitsha Expressway.

The telecoms giant is expected to complete the dualisation of the 110-kilometre road.

The RITC scheme grants income tax credit to companies and individuals that provide funding for the refurbishment and rehabilitation of roads.

The scheme is a public-private partnership (PPP) intervention that enables the Nigerian government to leverage private sector capital and efficiency for the construction, repair, and maintenance of critical road infrastructure in key economic areas in Nigeria.

Participants will be entitled to utilise the total cost (project cost), incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability, until full cost recovery is achieved.

In August 2021, MTN announced plans to reconstruct the Enugu-Onitsha expressway, under the RITC.

https://moneycentral.com.ng/exclusive/article/mtn-nigeria-begins-reconstruction-of-enugu-onitsha-expressway/

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Naira has now appreciated to N993/$ - Aboki FX

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Private Ori Megidish, an IDF soldier, was rescued during the IDF’s operation in Gaza on Sunday night, the IDF and Shin Bet said in a joint statement on Monday.

She was kidnapped by the Hamas terrorists on October 7 and has now been reunited with her family.

A subsequent medical examination administered to Megidish has determined that she is healthy.

The statement noted that the IDF and Shin bet will continue to make every effort to secure the freedom of the remaining hostages.

Celebrations erupted around Megidish’s house in the southern Israeli city of Kiryat Gat. A crowd gathered around the residence and neighbors and revelers sang songs and set off fireworks.

“It’s like another birth,” Israeli media quoted a neighbor of the family, Itamar Trobek, as saying. “We are very happy. We saw the family, they weren’t the same as yesterday. We prayed a lot.”

https://moneycentral.com.ng/markets/article/idf-rescues-female-soldier-held-hostage-by-hamas/

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Nigeria is planning to introduce new foreign exchange rules — including a crackdown on illegal currency trading — that it hopes will result in the naira appreciating to its fair value by year-end, 2023.

The government sees a “fair price” for the dollar at 650 to 750 naira, Taiwo Oyedele, chair of the presidential committee on fiscal policy and tax reforms, said in an interview with Bloomberg.

In the parallel market, the naira traded at 1,165 per dollar on Monday.

The government plans to clear a backlog of dollar demand estimated at about $6.7 billion, bolster the naira forward market, and set transparent rules for the operations of the official market, Oyedele said.

It also aims to expand the official market to include all legitimate transactions, while snuffing out the illicit “black market” for foreign currency, he said.

“We think all of that will happen before December, and maybe in a matter of a couple of weeks we will begin to see the results, such that before the end of the calendar year, naira should find its true value, not the one that is being done currently in the parallel market,” Oyedele said.

https://moneycentral.com.ng/exclusive/article/naira-to-reach-fair-value-of-750-by-year-end-2023-oyedele/

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Nigeria announced this week that it expects to receive $10 billion of inflows of which $7.0 billion is expected from NNPC’s forward sales and $3.0 billion from Qatar, according to a research note by Cardinal Stone Partners.

The inflows will help ease a liquidity crunch weighing on the naira.

The government has a “line of sight” on the inflows into the country “in weeks rather than months,” Finance Minister Wale Edun said at the Nigerian Economic Summit in the capital, Abuja, on Monday.

President Bola Tinubu’s government has been struggling to stem the decline in the currency. The inflows will add to other steps being taken by the government to boost foreign-exchange liquidity, including improving market transparency and allowing domestic entities to issue foreign-exchange instruments, Edun said.

Further out, given that both the fiscal and monetary authorities have shown commitment to improving the FX liquidity in the country, upside potential for the naira might be in the offing in the near to medium term, Cardinal Stone Partners said.

“For context, the government plans to raise $10.0 billion, The expected inflows could be higher if the government can obtain the $3.0 billion Afrexim bank loan and can get the World Bank facility of $5.0 billion ($3.5 billion for project development and $1.5 billion to support key policy reforms),” the research firm said.

https://moneycentral.com.ng/exclusive/article/qatar-nnpcl-to-provide-nigerias-expected-10-billion-inflow/

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Two US fighter jets struck weapons and ammunition facilities in Syria on Friday in retaliation for attacks on US forces by Iranian-backed militia as concerns grew that the Israel-Hamas conflict may spread in the Middle East.

US President Joe Biden ordered strikes on the two facilities used by Iran’s Revolutionary Guard Corps and militia it backs, the Pentagon said, warning the US will take additional measures if attacks by Iran’s proxies continue.

US and coalition troops have been attacked at least 19 times in Iraq and in Syria by Iran-backed forces in the past week. Hamas, Islamic Jihad and Lebanon’s Hezbollah are all backed by Tehran.

Iranian Foreign Minister Hossein Amirabdollahian said at the United Nations on Thursday that if Israel’s offensive against Hamas did not stop, the United States will “not be spared from this fire.”

The US air strikes took place at roughly 4:30 a.m. on Friday in Syria (0130 GMT) near Abu Kamal, a Syrian town on the border with Iraq, and were carried out by two F-16 fighter jets using precision munitions, a US defense official said.

“These precision self-defense strikes are a response to a series of ongoing and mostly unsuccessful attacks against US personnel in Iraq and Syria by Iranian-backed militia groups that began on October 17,” US Defense Secretary Lloyd Austin said in a statement.

“These Iranian-backed attacks against US forces are unacceptable and must stop,” Austin said.

Biden has sent a rare message to Iranian Supreme Leader Ayatollah Ali Khamenei warning Tehran against targeting US personnel in the Middle East, the White House said earlier on Thursday.

“What we want is for Iran to take very specific actions, to direct its militias and proxies to stand down,” a senior US defense official said. The United States did not coordinate the air strikes with Israel, the official added.

Israel said on Friday military raids into Gaza were preparing “the next stage of the operation,” amid fears that a ground invasion of the Palestinian enclave could spark a wider Middle East conflict.

https://moneycentral.com.ng/markets/article/us-jets-bomb-syria-after-attacks-by-iran-backed-militia/

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Access Bank South Africa, Kenya and Mozambique all subsidiaries of Nigeria based Access Holdings made losses for the third quarter (Q3) period to September, 2023, up from only 2 (South Africa and Guinea) bank subsidiaries a year ago.

Access Holdings, which has been expanding its banking services across the African continent at a breakneck pace, saw three (3) is dealing with increased operating expenses for the African subsidiaries.

Access Bank South Africa had the biggest loss of N3.618 billion, followed by Access Bank Kenya with N261 million and Access Bank Mozambique with N7 million, data from the financials seen by MoneyCentral shows.

The reported losses were largely due to huge operating expenses which swallowed up most of the operating income.

Operating expenses for South Africa rose by 8.5% to N10.09 billion on a year-on-year basis.

The South African bank subsidiary is the 8-th largest for Access holdings with N233.8 billion in assets.

https://moneycentral.com.ng/exclusive/article/access-bank-south-africa-kenya-mozambique-report-loss-in-q3/

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Dangote’s fertiliser which operates a natural gas based granulated urea fertiliser manufacturing plant, was hit by gas pressure and supply interruption leading to low capacity utilisation rates of 32% in 2022.

However, utilization is expected to gradually improve to 72% by 2025, according to Fitch.

Sale of urea will be mostly geared towards exports to Africa, North America and Latin America, targeting 75% of production, with the balance to be sold locally.

The fertiliser business began operations in 2021 for Line 1 and Line 2 began in 2022. Dangote Fertiliser comprises of two 4,000 tons per day (TPD) urea production lines, positioning the Dangote Group as a leading manufacturer of urea fertiliser globally.

Dangote fertiliser contributed 17% to Dangote Industries Limited’s (DIL) consolidated EBITDA in 2022.

https://moneycentral.com.ng/markets/article/dangote-fertiliser-output-slumps-to-32-on-low-gas-supply/

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MTN Nigeria is set to build a new office tower in upscale Eko Atlantic City, a new district in Lagos, to serve as its headquarters in the country, according to information seen by MoneyCentral.

MTN which is Nigeria’s largest telecommunications company had earlier announced, its desire to plant deeper and more permanent roots in Nigeria.

“We have initiated plans to commission a purpose-built, state of the art MTN Head Office, designed to act as a central hub for our network, a catalyst for creativity and innovation, and a showcase for the flexible working structures that are driving efficiency gains in this new normal working environment,” MTN said.

Aligned with wider commitment to environmental sustainability, MTN said the head office will meet the highest global environmental standards, demonstrating the role of green technology in our future.

The new office building will be an 18 stories sustainable tower designed to respond to the environment and improve air oxidization in a calm working environment, according to its architects.

[url]https://moneycentral.com.ng/markets/article/mtn-nigeria-to-build-new-office-tower-in-eko-atlantic-city/
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Two female students of Kwara State Polytechnic, Joseph Joy Adanma and Vandora Oreoluwa Favour, have disclosed how they killed a nightclub owner, Adeniyi Ojo, during a sexcapade, in Ilorin, the state capital.

Speaking after they were paraded at the police Force headquarters in Abuja on Wednesday, October 11, 2023, Adanma revealed that they, during a sex romp, tied Ojo, the son of Chief Emmanuel Ojo, a prominent figure in Ilorin, to a hotel bed, stole his phones, and other belongings, and killed him.

Adanma disclosed that they attempted to steal from the deceased who wanted to have sex with her and her friend, Favour, but in the process, the man died.

She said she worked for the deceased in his nightclub for about three months in 2022 until the club was shut down by the government, marking the beginning of their relationship.

The suspect said she got her friend involved in the attempt to steal from Ojo when he requested to have sex with her.

The suspect disclosed that the initial idea was to lure him to have sex with them in his car, on the belief that they would find money in the car.

She however said they eventually ended up in a room where they tied the deceased on the pretense of having a sex rump, adding that when the deceased attempted to shout, they covered his mouth with a pillow.

The student further revealed that they attempted to drug the nightclub owner but failed in their bid.

Adanma, however, stated that they didn’t know that the man was dead when they left with his phone, saying they thought he was pretending to be asleep.

Speaking during their parade, the Force Public Relations Officer, ACP Olumuyiwa Adejobi, said: “On October 6, police operatives apprehended the two suspects, Adanma and Favour, who are both students of Kwara State Polytechnic for their involvement in the robbery and murder of Mr. Ojo.

“Through meticulous investigative work, our officers were able to track and apprehend these suspects in Mowe-Ibafo, Ogun State.

“In the tragic incident, the duo tied the deceased under the guise of having a sex rump and demanded money from him. But when he was not forthcoming, they resorted to drugging and suffocating him, leading to his untimely demise.

“They have been processed and will be charged to court shortly.”

See Video below:


[url]https://moneycentral.com.ng/news-for-you/article/video-how-we-killed-club-owner-in-sexcapade-%e2%80%95-students/[/url]

Nigeria Central Bank should go and learn how to build its dollar reserves

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The Bank of Israel will sell foreign exchange for the first time since it allowed the shekel to trade freely as part of an unprecedented program to support markets following Saturday’s surprise attack by Hamas militants.

The central bank will sell as much as $30 billion and extend up to $15 billion through swap mechanisms, according to a statement on Monday.

The goal of operating in the market during the coming period is to smooth out volatility in the shekel’s exchange rate and provide the necessary liquidity, it said.

After having long been concerned about the shekel’s excessive appreciation, the Bank of Israel’s intervention marks a reversal and is meant to prevent the currency from falling. The move follows the deadliest attack on Israel in decades, with Prime Minister Benjamin Netanyahu saying the war with Hamas militants in the Gaza Strip will be lengthy and “difficult.”

Israel’s currency slid to a session low despite the intervention, after briefly erasing losses. The currency fell 2.2% to 3.9246 against the dollar as of 11:30 a.m. local time, the weakest since 2016.

The country’s benchmark TA-35 stock index fell 0.3%, extending a 6.5% drop from Sunday. Stock markets across the Middle East fell amid concerns the war might escalate into a broader conflict, with Dubai’s benchmark gauge losing 2.8%.

https://moneycentral.com.ng/markets/article/shekel-gets-45-billion-bank-of-israel-support-after-attack/

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NPF Pensions Managers, Pensions Alliance Limited (PAL) Pensions and Access Pensions are the best performing Pension Funds this year, even as most Pension Fund Administrators (PFAs) missed out on the spectacular rally in equities, so far in 2023.

NPF Pensions fund price has gained 17% year-to-date (YTD), followed by PAL Pensions up 16.34% and Access Pensions Limited up 13.54%, according to retirement savings account or RSA Fund II data compiled by MoneyCentral (see table).

The RSA Fund 2 is the default fund under the Multi-fund structure for RSA holders who are below 50 years old.

The top 3 performing funds also had the highest asset allocation to domestic equities with NPF at 23.65%, PAL at 17.87% and Access Pensions at 11.21% as at September 2023.

This compares to the average exposure to domestic equities by Pension Funds of 7.84% of total assets as at July 2023, according to the latest PENCOM data.

Nigeria’s broad stock market index has gained 29.52% year to date.

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Premium Pension Limited is in fourth position returning 12.64% year to date, FCMB Pensions Limited is next with 12.21%, TangerineApt Pensions Limited 12%, CrusaderSterling Pensions Limited 11.94%, ARM Pension Managers 11.71%, Trustfund Pensions Limited 11.61% and Leadway Pensure PFA Limited 11.58% to make up the top 10.

Most fund managers still underperforming inflation

Despite the double digit gain, most Pension fund managers are underperforming inflation, when RSA returns are juxtaposed with rising headline inflation, reinforcing the negative real returns on Naira-denominated assets, a risk which continues to discourage savers and investors in Naira-denominated financial assets.

Whilst the best performing NPF Pensions fund price has gained 17% year-to-date, headline inflation printed at 25.8% in August, a more than 18-year high, thus reinforcing the negative return on Naira-denominated assets.

The impact of a negative real return is particularly harsh on pension and life insurance funds, given that the opportunity cost of a negative real return is perhaps the highest for these class of investors.

For Retiree Savings Accounts (RSAs), the negative real return translates to lower pay-out to pensioners, thus implicitly reducing their standard of living.

Given that annuity payments are fixed, the opportunity cost of a low interest rate environment is borne by the life insurance firm, resulting in major underwriting losses for most life insurance firms whilst also making new annuity offerings less attractive to new clients.

https://moneycentral.com.ng/markets/article/npf-pal-access-pensions-have-best-returns-as-pfas-miss-equity-gains/

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Unity Bank a mid-tier Nigerian lender saw its woes deepen in the first six months (H1) of 2023, as it recorded a massive loss of N38.86 billion for the period.

The bank is also technically insolvent as it had negative shareholder funds or total equity of –N178.82 billion as at June 2023.

While gross revenues of N27.75 billion were flat compared to 2022 levels, Unity Bank was hit by higher interest expense and humongous Foreign Exchange (FX) revaluation loss of N35.4 billion.

Nigerian companies have been hit by a 40% devaluation of the currency after newly elected President Bola Tinubu moved to a more market friendly set of reforms, however banks that are positioned net long the dollar have booked FX gains.

The FX losses booked by Unity Bank suggests it was positioned net short (FX liability), per the dollar, banking sources told MoneyCentral.

Unity Bank stock has gained 143% year to date, closing at N1.34 per share in Friday’s trading.

The Unity Bank Board says it expects that; “barring unforeseen circumstances, the results would improve materially following initiatives already set in motion.”

MoneyCentral expects market direction of the stock in Monday’s trading session to determine if investors retain confidence in the Board’s pronouncement.

https://moneycentral.com.ng/markets/article/technically-insolvent-unity-bank-reports-n38-86bn-loss-in-h1/

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Changshan County, located in the eastern Chinese province of Zhejiang, is now offering cash “rewards” to couples for brides aged 25 or younger.

The reward of 1,000 yuan (some $137) is supposed to encourage more young people to get married.

The rewards system was announced on the official WeChat account of the county last week. The measure is ostensibly meant to promote “age-appropriate marriage and childbearing” for first marriages.

The system, however, does not offer any requirements for the grooms of newlywed couples. Apart from the cash lump sum, the county is now offering a series of subsidies on childcare and education for young couples who have children.

The announcement comes as China marked its first population decline in six decades, with the National Bureau of Statistics China reporting last January a drop in around 850,000 people for a population of over 1.41 billion in 2022. The drop is the first one on record since 1961 – the last year of China’s Great Famine.

Earlier this month, China also reported an alarming drop in fertility rates, which reached a record low of 1.09 last year, according to figures from China’s Population and Development Research Center.

The figure puts China at the lowest fertility level among countries with a population of more than 100 million, as well as among the world’s lowest altogether, such as South Korea and Singapore.

https://moneycentral.com.ng/news-for-you/article/chinese-region-offers-rewards-for-brides-under-25/

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The sales price of Dangote Cement is 17.22% cheaper on average when compared to prices set by global cement manufacturing giants from Cemex of Mexico to Holcim in Europe, research by MoneyCentral shows.

The data suggests any opening up of borders to importation will not lead to lower prices but would decimate local manufacturing jobs.

MoneyCentral looked at financial data from six of the world’s largest cement manufacturers from 5 continents: including Cemex of Mexico/USA, Dangote Cement of Nigeria, Holcim Ltd based in Europe, Anhui Conch of China, Votorantim Cimentos of Brasil and UltraTech Cement Limited India.

It showed an average sales price during 2022 for cement of $90.61 per metric ton for the group. This compares with Dangote Cement which sold its cement 17.22% cheaper at an average of $75 per metric ton (see chart).

However when compared to global cement manufacturing peers, Dangote Cement is at a disadvantage in nearly all metrics that is vital to profitable cement manufacturing, including finance costs, inflation, cement volumes and sales price.

The only major advantage MoneyCentral saw for Dangote Cement was lower energy costs and efficiency of cement plants due to its investment in newer and more energy efficient plants across Africa.

Some of the global peers such as Holcim have domestic subsidiaries in Dangote Cements operating locations, meaning the subsidiaries can tap the expertise, cheaper source of capital, of their global parent company, all while being in direct competition with Dangote Cement, a luxury Dangote Cement does not have.

Our thesis is simple: opening the floodgates of cement importation will not lower Nigeria Cement prices as the major global cement manufacturers currently sell their products at a price point higher than Dangote Cement.

It is however, more likely that given additional costs of shipping, port handling, demurrage, naira devaluation and haulage from ports on the coast to the hinterlands, prices will rise steeply just as we currently see with petrol, another fully imported commodity.

However there would be lost jobs, lower taxes for the Federal Government (FG), negative impact on the domestic stock market, less innovation and lost manufacturing activity in the country if unbridled importation were to occur.

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Source: MoneyCentral Research, Company Financials
Cemex (Mexico, USA)

Cemex average sales price for cement during 2022 was $114.30 per metric ton.

For the year ended December 31, 2022, Cemex had net sales of $15.6 billion, which were higher than those for the year ended December 31, 2021, mainly driven by price increases across its products and services in all of the regions where it operated from.

During 2022, Cemex pricing and cost mitigation efforts were able to offset much of the impact of inflation.

“As of December 31, 2022, 77% of our total debt plus other financial obligations was Dollar denominated, 13% was Euro-denominated, 2% was Pound Sterling-denominated, 5% was Mexican Peso denominated, 2% was Philippine Peso-denominated and 1% was denominated in other currencies,” Cemex said in its financials.

Chief Financial Officer Maher Al-Haffar said the company would keep pushing forward with price increases in 2023.

“More than 80% of our volume is being repriced in the early part of the year and we think there is very good traction,” Al-Haffar said in a call with analysts earlier in the year.

Takeaway: Cemex raised prices in 2022, to mitigate impact of inflation and will continue to raise prices this year.

Dangote Cement also can’t afford cheaper USD financing like Cemex due to extreme volatility of Naira vs dollar, such mismatch is risky because it will need to service dollar debt with revenues generated in Naira which becomes much more expensive in the event of a devaluation.

Cemex sold 63.4 million metric tons of cement in 2022.

Dangote Cement (Nigeria, Africa)

Dangote Cement’s average sales price for cement during 2022 was $75.5 per metric ton.

In 2022, Ethiopia one of Dangote Cements geographic locations of operations showed characteristics which indicates the existence of hyperinflation.

Dangote Industries (Ethiopia) Plc is one of the subsidiaries of Dangote Cement Plc and accounts for ₦103.3 billion (6%), ₦33.3 billion (6%) and ₦270.6 billion (10%) of the Group’s revenue, profit before tax and total assets respectively.

Takeaway: Dangote Cement deals with high inflation not just in Nigeria but in rest of Africa

The only variable it controls is efficiency as macro variables such as inflation, interest rates, energy costs, and even pricing (due to competition) is largely outside its control. Cost of sales as a percentage of revenue is lowest for Dangote Cement due to massive investment in brand new plants across Africa (see chart).

However, the firm has one of the lowest prices, combined with the highest inflation and finance costs among the peers.

Average sales price during 2022 for Dangote cement was N58,282 per metric ton or $75.5 per metric ton, when using the most recent I&E rate of N772/$.

Dangote Cement sold 27.76 million metric tons of cement in 2022.

Holcim (Switzerland, Europe)

Holcim average sales price for cement during 2022 was $96.87 per metric ton.

The harmonised index of consumer prices (HICP) rose to 9.2% in 2022 for the EU, compared to 2021’s annual value of 2.9%.

The EU Innovation Fund granted Holcim two awards for carbon capture projects in Germany and Poland, for a total of EUR 328 million.

Net sales reached a record CHF 29,189 million for the full year of 2022, up by 12.9 percent on....
https://moneycentral.com.ng/markets/article/dangote-cement-prices-17-cheaper-than-global-average-data-shows/

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Niger’s military leadership expelled the French, German and Nigerian ambassadors just as talks to restore democracy between the West African nation and its regional partners were making progress.

France’s ambassador Sylvain Itte was asked to leave the country in 48 hours after failing to honor summons to respond to questions about actions contrary to Niger’s interests, the foreign ministry said in a statement.

Ambassadors from Germany and Nigeria were also given 48 hours to leave, according to separate statements.

France rejected the junta’s orders saying its ambassador would stay in the country as the junta doesn’t have the authority to make the demand.

France’s ambassador was accredited by the foreign ministry under ousted President Mohamed Bazoum, Niger’s Foreign Minister Hassoumi Massoudou said in a post on X, formerly known as Twitter, on Friday.

France has previously said it supports all actions by the Economic Community of West African States to restore democracy in Niger. Nigeria’s President Bola Tinubu has taken the lead, preparing for a regional military intervention.

The latest development comes as the junta – facing regional and international pressure, has refused to relinquish power and release Bazoum.

Ecowas on Friday reiterated its readiness to use military action to overturn the July 26 coup if dialog fails.

All options are on the table, including the use of force, Omar Alieu Touray, the president of the Ecowas Commission, told reporters in Abuja, Nigeria’s capital.

https://moneycentral.com.ng/exclusive/article/niger-military-junta-expels-nigerian-french-and-german-ambassadors/

The Norwegian Government Pension Fund is still the world's largest sovereign wealth fund (SWF). According to data from Global SFW, the fund's assets under management amount to $1.38 trillion, narrowly exceeding the $1.35 trillion in assets under management from the Chinese Investment Corporation.

Data from the Global SFW shows the world's largest sovereign wealth funds are located in Asia and the Arab world, with Norway the only, albeit notable exception.

The unique Norwegian fund was set up to invest government revenues from its vast oil and natural gas reserves into sectors deemed more sustainable in order to provide for a future when the country can no longer rely on its income from fossil fuels.

The Norwegian government is free to use up to three percent of the fund's volume annually for social purposes – that number currently amounts to roughly $40 billion.

The top six SWF ranked by Assets Under Management (AuM), are: Norway, China CIC, UAE-Abu Dhabi, China SAFE IC, Kuwait KIA, Singapore GIC.

Saudi Arabia's Public Investment Fund (PIF), which is seventh on the list and has made a lot of headlines recently due to its significant investments in golf and football, released its 2022 annual report on Sunday, providing the public with a glimpse into the operations of one of the world's largest sovereign wealth funds.

At the end of 2022, the PIF's assets under management amounted to roughly $600 billion - a figure that has since grown to $700 billion according to Global SWF, a company tracking sovereign wealth funds.

While gaining more international attention due to its investments in sports, the PIF actually reduced its international strategic investments last year, with their share of total assets under management dropping from 20 to 10 percent, while domestic investments accounted for 77 percent of AuM at the end of the year.

Often accused of "sportswashing", the PIF is very clear about the purpose of its international investments in its annual report.

Among other things, the fund's strategic international investments are meant to "establish strategic relationships and partnerships with innovative companies, investment managers, and influential investors to allow Saudi Arabia to extend its global reach and influence", to "bolster Saudi Arabia’s position on the world stage as a leader and enabler of the future global economy" and to "support government-to-government relationships."

Nigeria's SWF managed by the Nigeria Sovereign Investment Authority or NSIA was ranked 73rd on the list with total assets at year end 2022 standing at N1.032 trillion or $2.29 billion.

Nigeria is vying neck-to-neck with Angola and Colombia for the position.

https://moneycentral.com.ng/markets/article/norway-remains-worlds-largest-swf-as-nigeria-ranks-73/

The Central Bank of Nigeria (CBN) held 21.38 tons of Gold reserves valued at $1.25 billion at the end of 2022, according to its recently released annual financial statement.

The Gold bullion is a monetary gold which consist of 687,402 troy ounces or about 21.38 tons of gold at the indicative market price of USD1824.02 per ounce.

Monetary gold is gold to which the Bank as a monetary authority has title to and is held as a reserve asset.

The CBN stash of Gold Reserves remained the same compared to 2021 levels. Heightened geopolitical and economic uncertainty have pushed central banks to diversify their reserves.

The World Gold Council expects central banks to keep adding to their holdings, although at a slower pace than last year when demand surged after the US sanctioned Russia’s reserves following its invasion of Ukraine.

https://moneycentral.com.ng/markets/article/nigeria-central-bank-held-21-38-tons-of-gold-reserves-valued-at-1-25-billion/

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Aminu Umar-Sadiq, Managing Director/Chief Executive Officer, NSIA


…plus the good, bad and ugly

The Future Generation Fund (FGF), the largest component of funds by assets managed by the Nigeria Sovereign Investment Authority (NSIA), recorded a sizable loss according to its 2022 annual report, a sign that all may not be well with the asset allocation strategy of the Sovereign Wealth Fund.

Losses for the FGF came in at N18.93 billion in 2022, largely as a result of a humongous N41.13 billion net loss on financial assets, as fair value loss on private equity, hedge funds and other securities came in at N32.15 billion.

Meanwhile, for the NSIA as a whole while personnel expense was kept in check as it was down 3%, general and administrative expenses jumped 77.3% to N1.6 billion, while travel expenses increased by 155% to N478.2 million, compared to 2021 levels.

The Future Generation Fund (FGF) is one of three funds managed by the NSIA and was set up to “invest in a diversified portfolio of appropriate growth investments in order to provide future generation of Nigerians a solid savings base for such a time as the hydrocarbon reserves in Nigeria are exhausted.”

Because the fund uses a plethora of active global asset managers (up to 49 different fund managers were counted by MoneyCentral from Goldman Sachs to obscure names like Edgbaston Investment Partners), instead of a simplified index fund or Exchange Traded Fund (ETF), strategy to gain exposure to global markets, it paid higher investment management fees, despite the poor performance.

Investment management fees for the FGF came in at N1.416 billion for the 2022 period, up 19% when compared to the 2021 period.

Operating and administrative expenses for the FGF also surged by 195% to N2.92 billion, despite the loss.

The FGF assets stood at N595.97 billion as at year-end 2022, compared with N374.8 billion for the Nigeria Infrastructure Fund and N60.93 billion for the Stabilisation Fund.

Total assets managed by the NSIA at year end 2022 stood at N1.032 trillion or $2.29 billion (Effective FX closing rate as at 31 December 2022 was N448.55/ US Dollar).

NSIAs Total comprehensive income of N96.96 billion for the year 2022, was down -34%, compared to 2021 levels.

Other highlights from the NSIA 2022 Annual Financial report

The Good: Profit from investments in FMCU, AKTH & LUTH

The NSIA booked infrastructure operating revenue of N3.186 billion representing 100% of revenue which came from its healthcare facilities and profit up 58.3% to N2.26 billion in 2022.

Revenue from healthcare facilities represented revenue...

https://moneycentral.com.ng/exclusive/article/nsia-2022-annual-report-fgf-loses-n18-93bn-as-operating-travel-expense-jump/

Cornerstone Insurance Plc has benefitted from net exchange gain due to translation of foreign currency denominated assets that spurred a strong profit growth even amid rising claims and deteriorating underwriting results.

For the first six months through June 2023, Cornerstone Insurance’s net income surged by 3,556 percent to N11.25 billion from N408.12 million As at June 2022, the highest uptick at the bottom line (profit) in over a decade.

The surge was driven by a foreign exchange gains of N12.77 billion in the period under review as a weak Naira was a boon for the insurer as there were increases in foreign currency denominated assets

However, there were weaknesses at the underwriting level due to mounting obligations to policyholders. A stubbornly high inflation means the replacement cost of assets from vehicles to buildings has been spiking.

For instance, claims expenses surged by 166.25 percent to N4.26 billion in June 2023 from N1.60 billion the previous year.

That resulted in an underwriting loss of N1.22 billion from a profit position of N2.37 billion as of June 2023.

The insurer’s combined ratio deteriorated to 164.32 percent in June 2023 from 123.95 percent in June 2022, according to MoneyCentral calculations.

The combined ratio is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations. It is typically expressed as a percentage.

A ratio below 100 percent indicates that the company is making an underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums.

The insurer’s physical and digital channels have been expanding and contributing to top line (sales) growth as all business segments are also contributing to earnings growth.

Gross premium written (GPW) spiked by 42.91 percent to N14.72 billion in June 2023 from N10.30 billion as at June 2022.

Gross premium income (GPI) was up 24.94 percent to N13.32 billion as at June 2023 from N10.66 billion the previous year.


https://moneycentral.com.ng/insurance/article/cornerstone-insurance-profit-surges-3555-on-n12-75bn-fair-value-gain/

Nigerian firms growing corporate debt loads are bumping up against aggressive interest rate hikes by the central bank seeking to tame inflation, meaning companies are paying higher interest expense on borrowings.

The corporate debt (a combination of short and long term obligation) stood at N6.29 trillion as at June 2023, which is 27.18 percent higher than 2022’s N4.92 trillion.

Companies have a variety of ways to finance their operations, including using their own earnings, issuing new equity, issuing bonds, or taking out loans. The composition of financing options that a company chooses matters, particularly during economic downturns.

While debt financing is advantageous because it is cheaper as it enjoys tax shield and it does not lead to ownership dilution, a deteriorating cash flow that is not able to cover interest obligation might lead to bankruptcy.

Of course, a low interest rate environment that started in 2020 fueled by central bankers slashing of monetary policy rate to spur growth during the coronavirus pandemic spurred companies to tap the debt market to fund their working capital requirement and expansion plans.

But the interest that these firms will be paying to service the debt has been rising since the first quarter of 2022 when the central bank began its tightening campaign to rein in  inflation exacerbated by the Russia and Ukraine war that sent commodities and grains prices higher.

The total finance costs of non-financial firms surged by 127.44 percent to N621.30 billion as at June 2023, according to data gathered by MoneyCentral.

Nigeria 10 year bond yield was 13.22 percent on Friday August 4, according to over-the-counter interbank yield quotes for this government bond maturity.

It is worth noting that yields were as low as 4.29 percent as of October 26, 2020.

The monetary policy committee of the central bank raised its benchmark rate to a record 18.75 percent at its last meeting from 18.5 percent.

Nigeria’s inflation rate rose to 22.79 percent in the month of June 2023, representing a 0.38 percent increase from 22.41% recorded in the previous month.

The balance sheet of most companies are healthy even amid higher costs as they have enough operating profit to absorb finance cost and still remain profitable in the face of foreign exchange losses brought on by incessant currency devaluation.

The median interest coverage ratio for Nigerian companies stood at 30 at June 2023, substantially higher than last year’s 21.44, according to data from MoneyCentral.

The figure is a measure of a company's ability to repay its debts, with a ratio of at least 2 generally considered the minimum acceptable amount for a company with solid revenues. Analysts typically prefer a coverage ratio of 3 or higher.

Analysts say with the reinvigorated bullish sentiment in the equity market, corporates would seek to take advantage of the renewed hope for capital raising in both the equity and debt markets.

However, they added that expectations of a lower interest rate environment in the near to medium term suggests that most corporates would delay tapping the debt capital market to avoid locking in a high cost on long term debt, thus financing Capex programmes through relatively shorter term bank loans of say one year.

“Indeed, I see prospects for gradual renewal of interest in the primary segment of the equity capital market over the next few quarters, as new valuation in the secondary market provides some excitement for issuers to tap seasoned or new equity capital raising opportunities in the capital market,” said Abiola Rasaq former Economist and Head, Investor Relations for United Bank for Africa (UBA).

“So, the corporate financing outlook should be a blend of debt and equity, as both segments of the market begin to open up. The right blend of both capital options would be dependent on the sector, the stage of the company in contest and the type of projects each company is seeking to finance, amongst other factors relevant to the assessment of the capital structure of the respective issuers,” said Abiola.

Issuances of commercial papers (CPs) have risen sharply year on year by 57.80 percent due to heavy fundraising by companies that seek to meet their working capital requirements and fund future expansion plans.

The amount raised by firms spiked by 57.80 percent to N786.59 billion in June 2023 from N498.50 billion as at June 2022, according to data gathered by Afrinvest Securities.

Of course, the number of issuances followed the same growth trajectory as it moved to 104 in June 2023 from 55.

“The short-dated nature of CPs provided comfort for issuers to refinance and raise new capital while navigating uncertainty in the period,” said analysts at Afrinvest Securities Limited.

https://moneycentral.com.ng/exclusive/article/corporate-debt-surges-to-over-n6trn-as-interest-expense-spikes/

The Nigeria Sovereign Investment Authority (NSIA) has failed to make public its annual report for the 2022 financial year, some 8-month into the new year.

A one-page abridged financial statement was released on its website showing the NSIA which manages Nigeria’s Sovereign Wealth Fund (SWF) with assets of $2.3 billion, saw it profit fall -33.3% in 2022.

Net gain on financial assets fell by 97% between 2021 and 2022, leading to the slide in profit.

NSIA total assets (Group) fell to N1.032 trillion or $2.22 billion, from N1.227 trillion ($2.64 billion) in 2021.

The summary one-page financial statement do not contain all the disclosures required by the International Financial Reporting Standards, the NSIA and the Financial Reporting Council of Nigeria, according to PricewaterhouseCoopers (PwC) the audtors.

“Therefore, reading the summary financial statements and the auditor’s report thereon, is not a substitute for reading the audited financial statements and the auditor’s report thereon,” PwC said.

Read More: https://moneycentral.com.ng/markets/article/nsia-fails-to-release-annual-report-8-months-into-new-year/

Consolidated Hallmark Insurance (CHI) Plc has reported a rise in pre-tax profit of 103.64 percent to N1.57 billion for the second quarter of 2023, even amid elevated costs as the insurer continues to build its momentum while delivering outstanding financial results.

The insurer’s net income spiked by 74.30 percent to N989.60 million in June 2023, which is attributed to interest revenue and fair value gain on financial assets.

Direct premium revenue also increased in the quarter, to N9.47 billion.9 billion in 2023 from N6.60 billion, driven by growth all business segment.

The company’s ability to continue to grow, manage volatility and improve profitability reflects its commitment to underwriting and operational excellence.

Eddie Efekoha CEO at Consolidated Hallmark Insurance Plc Nigeria, said that the growth recorded in the Group’s bottom line reflected the prudent measures taken to increase shareholder value.

He assured its investors and other stakeholders that efforts would continually be focused on creating more value for its numerous investors and stakeholders.

It paid N3.72 billion in claims to policyholders, which represents an 8.14 pe4cent reduction from 2022’s N4.05 billion.

About Consolidated Hallmark

Consolidated Hallmark Insurance Plc is a Nigeria-based general business insurance company. The Company’s segments include General & Micro Life Insurance Business & HMO and Finance and support services.

The General & Micro Life Insurance Business & HMO segment provides cover for indemnifying customers’ properties, and compensation for other parties that have suffered damage as a result of customers’ accidents.



https://moneycentral.com.ng/exclusive/article/consolidated-hallmark-reports-solid-q2-despite-elevated-costs/

By Patrick Atuanya

AXA Mansard Plc has benefitted from fair value gains on bond portfolios that impetus profit as the insurer overcomes an unfavorable underwriting environment.

For the first six months through June 2023, AXA Mansard’s net income surged by 582.26 percent to N13.12 billion from N1.92 billion as at June 2022.

The growth at the bottom line (profit) was largely driven by N11.13 billion net gain or loss on financial assets at fair value through profit or loss.

Of course, the improvement in earnings is good tidings for shareholders who awaits bumper dividend at the end of the year, but that depends if the company maintains the growth momentum

AXA Mansard has a year-to-date (YTD) of 87 percent, outperforming the NGXASI index of 25.53 percent as it is enjoying the recent stock rally propelled by the market friendly policies of president Bola Tinubu.

The company posted N54.77 billion in gross premium written (GPW) as at June 2023, which is 21.81 percent higher than 2022’s N44.96 billion.

A breakdown of premium income shows revenue from the Life segment increased by 19.97 percent to N10.69 billion in June 2023 while sales from Non-Life business was up 19 percent to N22.80 billion.

It generated N21.27 billion from AXA Mansard Health (HMO) as at June 2023, which is 25.93 percent higher than 2022’s N16.89 billion as at June 2022.

Claims expenses were up 35.68 percent to N19.77 billion in the period under review from N14.57 billion the previous year.

While most insurers have recorded growth in earnings as investors continue to pile into stocks, industry contribution to the economy is discouragingly disappointing.

The reasons for the low penetration are: Lack of confidence for the claims process, cultural and religious beliefs, and weak macroeconomic conditions.

Taking up a cover in a country where over 50 percent of a population of 200 million live on less than 1.98 percent a day is off the table of most Nigerians who are struggling to survive.

Insurance sector’s growth fell by 7.25 per cent in the first quarter of 2023, National Bureau of Statistics (NBS) has said.

The NBS in its ‘Nigeria Gross Domestic Product Q1, 2023’ said the finance and insurance sector consists of two sub sectors which are financial institutions and insurance.

https://moneycentral.com.ng/markets/article/axa-mansard-profit-surges-582-26-on-foreign-exchange-gains/