₦airaland Forum

The macroeconomic pain is tormenting some firms who are flirting with bankruptcy and are technically insolvent unless owners act swiftly by injecting fresh capital needed to salvage these entities and avert massive layoffs in a country with high unemployment.

Of course, the announcement of removal of subsidy on fuel and unification of the exchange rate (a de facto devaluation) was not expected by companies who had not hedged against foreign currency risk; consequently, some of them booked huge foreign exchange revaluation losses that led to negative retained earnings.

However, some had been beleaguered even before the new bold reforms by President Bola Tinubu, as they continue to sail in turbulence.

Nestle Nigeria, Cadbury Nigeria, MTN Nigeria, PZ Cussons, Medview, R.T. Brisco, Tourist Company of Nigeria FTN Cocoa, incurred a combined N181.52 billion in negative shareholders’ funds as total liabilities exceeded total assets.

A breakdown of the figures shows Nestle incurred negative retained earnings of N78.35 billion; Cadbury, N15.08 billion; PZ Cussons, N23.16 billion; MTN Nigeria, N40.84 billion; Tourist Corporation of Nigeria, N7.82 billion; FTN Cocoa, N4.95 billion; Medview, N2.67 billion, and R.T Brisco, N8.87 billion.

Nigeria is a difficult country where rising inflation has undermined consumer spending and ballooned cost of production. And that’s as decrepit infrastructure and unstable power supply from the grid forces firms to spend copious amounts of money on generating plants for head office and branch office across the country.

There is also the issue of spiraling borrowing costs. Debt levels have quickly risen since the central bank intensified its hiking policies to curb stubborn inflation.

A few years ago, a court withheld R.T. Briscoe’s assets over a N2.6 billion debt owed to various commercial banks across the country.

FTN Cocoa, one of Nigeria’s oldest cocoa processors, is reeling from a liquidity crisis as it is unable to generate reasonable revenue and turn a profit. The cocoa processor has N17.45 billion debt in its balance sheet.

Analysts say a challenging macroeconomic environment and foreign currency (FX) crisis that is impacting product availability could force more firms to exist (Japa) the country.

GlaxoSmithKline Consumer Nigeria Plc, a major pharmaceutical giant, announced its exit from the Nigerian market.

Sanofi-Aventis Nigeria Ltd, a major supplier of polio vaccines, also announced its exit from the Nigerian market and transition to a third-party distribution model.

In February 2024, Nigeria’s headline inflation rate rose to 31.70 percent, up from 29.90 percent in January 2024, marking an increase of 1.80 percent.

The Nigeria 10 year government bond has a 19.760 percent yield. 10 years vs 2 years bond spread is 9.8 bps. Yield Curve is flat in Long-Term vs Short-Term Maturities.

“A number of companies made FX losses which resulted into the companies making losses after tax in 2023 financial year, thus, the retained earnings component of the owners’ equity/capital account of such companies are bound to be negative except if such companies have over the years accumulated strong retained earnings, through adequate retention of previous years’ profit,” said an analyst who doesn’t want his name mentioned.

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https://moneycentral.com.ng/markets/article/nestle-mtn-pz-cussons-briscoe-top-list-of-technically-insolvent-firms/

Insiders and major shareholders of Transcorp Power Plc that listed its shares on the Nigeria Exchange Limited by introduction on Monday pocketed a total of N37.97 billion, after selling 132.79 million shares.

RichPoint Limited a significant shareholder with 33.3% ownership stake in Transcorp Power sold 89.06 million shares on March 05 and March 06, at N290.4 per share and N319.4 per share for total proceeds of N26.32 billion, with reason for the sale said to be “to provide liquidity for the Listing by Introduction.”

Other insiders that benefited from the listing include, Emmanuel Nnorom, Board Chairman with 0.2% ownership who sold 195,006 shares at N319.4 on March 06, to pocket N62.284 million, HH Capital Limited (0.7% stake), which sold 560,643 shares at N290.4 on March 05 and pocketed N162.8 million, and the Tony Elumelu controlled Transnational Corporation of Nigeria which owns 51.6% of Transcorp Power which sold 42.972 million shares at N264 and N290.4 per share between March 04 and March 05, pocketing N11.423 billion as proceeds from the sales.

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The company currently accounts for 7.0 percent of Nigeria’s installed grid capacity but generates 10.0 percent of the country’s power needs, with its leadership position in the West African Power Pool (WAPP) and planned strategic alliances with DISCOs, eligible customers, and state governments leaving legroom for output growth in the near term.

https://moneycentral.com.ng/exclusive/article/transcorp-power-insiders-pocket-n37-97bn-from-share-sales-post-listing/

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MTN Nigeria has achieved a significant milestone in the rehabilitation of the 110- kilometre Enugu-Onitsha Expressway under the Road Infrastructure Tax Credit (RITC) scheme, which has reached 17% completion.

“We are pleased with the progress. This is a crucial step towards improving the transportation infrastructure in the region, and it helped to improve the ease of commuting, particularly during the festive season. More broadly, we believe the project will have a transformative impact on the lives of Nigerians and the country’s economy once completed,” MTN Nigeria said in a statement.

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.

[url]https://moneycentral.com.ng/markets/article/mtn-nigeria-completes-17-of-enugu-onitsha-expressway-reconstruction/
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MoneyCentral’s deep-dive into Geregu Power Plc’s Full Year (FY) 2023 earnings report shows the power firm is accelerating its growth, has a stress free balance sheet, and boosting shareholder returns.

Profit for the period rose 61 percent to NGN24.3 billion, revenue for the power generating company or GENCO increased 74% to NGN83 billion from NGN47.6 billion, and there was a 110% increase in operating Profit from NGN14.8bn to NGN31.1bn per the Financial statement audited by PWC.

Below are the major positives from the all-round solid report that investors should take note of as they are catalysts to propel shares higher in the short to medium term.

Geregu Power Energy Sold jumps 71%

In a sign of more uptime for the power plant and less gas disruptions Geregu Power energy sold increased by 71.2% to N51.79 billion, compared to N30.252 billion in December 2022. This is welcome sign that customers are being supplied power even as the company takes steps to make sure its plants are running optimally through regular repair and maintenance which cost N6.372 billion in 2023.

Total revenue for the period rose 74% to N83 billion.

N15.06bn Payment for Gas Turbine Overhaul

Geregu Power Plc made advance payments of N15.06 billion for the major overhaul of its gas turbine as of December 2023.

The overhaul is scheduled for the first quarter (Q1) of 2024.

As of June 2023, advance payment to Italian firm, Ansaldo Energia, was N8.783bn

In April 2022, Ansaldo Energia signed a three-year contract with Geregu valued at €32m to conduct a major overhaul of the 435 MW Power power plant in Ajaokuta, Kogi State, Nigeria.

The three-year contract included the supply of spare parts which would be entirely manufactured by Ansaldo Energia in Italy, and the maintenance services, which would be performed by its subsidiary Ansaldo Energia Nigeria, based in Lagos.

For Geregu Power, this represents the second major overhaul since the acquisition of the plant by Amperion Power Distribution.

Solid Cash Position

Geregu remained in solid liquidity position as its cash and cash equivalents for the period stood at a healthy N70.256 billion. This was up 36 percent from the Year-end 2022 levels of N51.63 billion.

Geregu earns more interest than it pays, so coverage of interest payments is not a concern.

The firm repaid N37.623 billion in borrowings helping to cut its outstanding term loans by 36.7% to N20.8 billion. The outstanding amounts are N17.575 billion non-current and N3.28 billion current loans.

Dividend

Geregu announced a dividend of NGN20bn proposed for the year ended December 31st 2023 as the First listed entity to release its audited Financial statement for 31st December 2023, is set to reward shareholders handsomely.

A Final Dividend of N8.00 per ordinary share, subject to appropriate withholding tax and approval will be paid to shareholders whose names appear in the Register of Members as at the close of business on the 27th February, 2024.

Earnings Per Share (EPS) up 57.7%

Basic earnings per share, calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of shares outstanding at the period, rose by 57.7% for Geregu Power to N6.42 from N4.02.

Investors usually reward companies growing EPS at such a high rate with an elevated earnings multiple.

Trade Receivables Fall 37.5%

Geregu Powers trade receivables fell by 37.5% in the period a good and healthy sign for the balance sheet as it shows that sales are translating into cash flowing into the company.

Trade receivables which stood at N76.9 billion at the end of 2022, fell to N48 billion in 2023 FY.

Trade receivables represent the total amounts that a company has invoiced to customers for goods and services that it has delivered but for which it has not yet received payment.

Stock Heading to N1,000

Geregu Power stock is up 29.77% year to date and closed trading at N517.80 per share on Tuesday. Analysts expect the stock to hit N1,000 per share sooner than later and these results validate the thesis.

https://moneycentral.com.ng/exclusive/article/deep-dive-into-geregu-power-fy-2023-earnings-shows-accelerating-growth/

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In a report published on January 1, JP Morgan listed as its third prediction for the top ten surprises of 2024 that Joe Biden will drop out of the 2024 presidential elections due to health reasons.

The full prediction states that “President Biden withdraws sometime between Super Tuesday and the November election, citing health reasons. Biden passes the torch to a replacement candidate named by the Democratic National Committee.”

This prediction cites Biden’s low approval rating, as well as his approximately 10% job creation since his inauguration, although his inauguration coincided with the rollout of COVID-19 vaccines and the reopening of the US economy.

Biden has the lowest approval rating of the last 10 presidents in the same time period, at 38%.

The first prediction for 2024 is that the US dollar will remain stable and the second prediction is that the DoJ/FTC will win a big antitrust case.

These predictions were written by Michael Cembalist, Chairman of Market and Investment Strategy for JP Morgan Asset & Wealth Management, in honor of market strategist Byron Wien, who passed away last year at the age of 90.

For over 30 years whether at Morgan Stanley or Blackstone, Byron published a top ten list of surprises for the following year. This list is published in JP Morgan’s Eye On The Market 2024 Outlook entitled “Pillowtalk.”

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https://moneycentral.com.ng/markets/article/biden-to-drop-out-of-2024-us-election-jpmorgan-strategist-predicts/

ivolt:
It won't solve anything.
The reason is very obvious but the solution is complex.

Not quite true. Diagnosing a problem is halfway to solving that problem.

On why Intel choose Israel for its $25bn Chip plant i would guess a number of reasons:

1. Availability of High tech workforce
2. Superior education/University facilities, R & D
3. Market economy with freely trading currency
4. Already existing tech ecosystem
5. Rule of law

If the Nigerian government can answer the question why Intel is investing $25bn in Israel despite the current war while it struggles to attract investments to Nigeria, it would have solved half the problem.

Israel’s government agreed to give Intel a $3.2 billion grant for a new $25 billion chip plant it plans to build in southern Israel, both sides said on Tuesday, in what is the largest investment ever by a company in Israel.

The news comes as Israel remains locked in a war with Palestinian militant group Hamas in the wake of the Oct. 7 Hamas attack on Israel.

Shares of Intel, which has a bit less than 10% of its global workforce in Israel, opened up 2.73% at $49.28 on Nasdaq.

The expansion plan for its Kiryat Gat site where it has an existing chip plant that is 42 km (26 miles) from Hamas-controlled Gaza is an “important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States,” Intel said in a statement.

Under CEO Pat Gelsinger, Intel has invested billions in building factories across three continents to restore its dominance in chip-making and better compete with rivals AMD , Nvidia and Samsung.

The new Israeli plant is the latest investment by the U.S. chipmaker in recent years.

“Support from the Israel government will … ensure that Israel remains a global center of semiconductor technology and talent,” Intel vice president Daniel Benatar said.

Intel had previously received around $2 billion in the past 50 years in Israeli grants in other facilities there.

Ofir Yosefi, deputy director general of Israel’s Investments Authority, said Intel chose a higher grant and tax rate over an offer for a lower grant and lower tax rate.

He said the process took months since a grant of such magnitude needed a review and independent analysis that it was economically viable. It was determined Israel would reap much higher fiscal and economic benefits, he added.

[b]“This investment, at a time when Israel wages war against utter wickedness, a war in which good must defeat evil, is an investment in the right and righteous values that spell progress for humanity,” Finance Minister Bezalel Smotrich said.

Intel, whose investm[/b]ent will be over five years, will pay a corporate tax rate of 7.5% instead of 5% previously. The normal tax rate is 23%, but under Israel’s law to encourage investment in development areas, companies receive large benefits.

In addition to the grant that amounts to 12.8% of the total investment, the chipmaker also committed to buy 60 billion shekels ($16.6 billion) worth of goods and services from Israeli suppliers over the next decade, while the new facility is expected to create several thousand jobs.

Intel, one of around 500 multinationals in Israel, established a presence there in 1974 and now operates four development and production sites, including its manufacturing plant in Kiryat Gat called Fab 28 that produces Intel 7 technology, or 10 nanometer chips, and employs nearly 12,000 people in the country while indirectly employing another 42,000 more.

At some $9 billion, Intel’s exports account for 5.5% of total high-tech exports. The Centrino chip, which enables the use of WiFi, and its Core processors were developed in Israel.

Intel, which bought Israeli self-driving auto technologies firm Mobileye for $15.3 billion in 2017, declined to say what technology will be produced at the new Fab 38 plant that Intel says construction is already begun.

In June, Prime Minister Benjamin Netanyahu said Intel would build a new $25 billion chip plant in Israel but Intel until now had declined to confirm the investment.

The Fab 38 plant is due to open in 2028.

https://moneycentral.com.ng/exclusive/article/intel-to-build-25bn-israel-chip-plant-in-largest-ever-investment/

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BUA Foods Plc came out of the blue to outperform peer rivals who had long been listed on the NGX index as the company weathered the storm by recording strong growth in financial metrics.

Of course, the consumer goods sector felt the pang of macroeconomic headwinds made worse by rising inflation and high interest rate that compounded the woes of consumers while the unexpected devaluation of the currency resulted in foreign exchange losses that undermined profit margins of most entities.

The ongoing crisis in Russian-Ukraine which caused commodity prices like wheat, maize, raw sugar, and Cocoa to rise to historic highs, have escalated industry cost of sales and shaved off margins.

It is important to note that manufacturers continue to groan under huge energy bills as electricity from the grid has been erratically unstable.

The headline inflation rate increased by 27.3 percent in October, according to the latest data from the National Bureau of Statistics (NBS).

It is important to note that Food and Non-Alcoholic Beverages remained the largest contributors to the increase in the CPI, accounting for 14.2 percent in October.

To tame inflation, the central bank has been raising interest rates and left the monetary policy rate at 18.75 percent as the Monetary Policy Committee (MPC) of the Apex bank has postponed two meetings.

Growth across divisions underpin BUA Foods’s earnings

Despite all of these challenges, BUA Foods Plc delivered strong top and bottom line returns across business portfolios, emerging as one of the largest companies by earnings in Nigeria.

BUA Foods’ revenue grew by 81 percent year on year (y-o-y) to N524.4 billion in the first nine months of 2023 (9M 2023) from N289.80 billion as at September 2022.

There were significant improvements at the divisions.

For instance, revenue from Flour division that contributed 29 percent to Group sales surged 126 percent to N149.9 billion in September 2023 from N66.2 billion in 2022.

This was driven by increase in sales volume and gradual commissioning of the company’s expansion plans as well as redesigned route to market distribution along the integrated supply value chain network.

It is interesting to note that volume sold increased by 73 percent to 238,785 tons within the period from 138,284 tons in September 2022. Revenue from bakery flour grew by 118.4 percent to ₦135.5 billion in September 2023 from N62.1 billion in 2o22.

Interestingly, revenue from the Pasta division contributed 11 percent to revenue increased by 37 percent to N58.3 billion in September 2023 from N42.70 billion in 2o22. This was driven by price adjustments and other innovative proactive sales initiatives within the year.

There was a 4 percent increase in the production volume to 91,305 tons in 2023 from 87,748 tons in 2022 within the period.

BUA Foods has been magnifying rice production as it continues to acquire and plough more lands, creating jobs and stamping its footprints across the country.

These investments are yielding fruit as the company’s new division Rice business contributed N995 million to the top line (sales) in the period under review (Nine months September). The largest consumer goods firm by profit said that across the business divisions there was significant growth in volume sold impacting the overall performance as well.

Due to the slight selling price adjustment and new market penetration for sales within the year, BUA Foods’ gross profit increased by 95.1 percent to N183.8 billion in September 2023 from N94.2 billion in 2022.

Operating profit grew by 94.5 percent to N156.9 billion in September 2023 from N80.7 billion, benefitting from top line growth driven by price adjustment, local market expansion and the company’s export sales and gradual commissioning of our ongoing expansion plans.

Profit before tax increased significantly by 50 percent to N111.4 billion in 2023 from N74.2billion in 2022.

Profit after tax grew by 53.6 percent to N105.6 billion in the period under review from N68.8 billion. The earning per share (EPS) followed the same growth trajectory as it grew by 53.6 percent to N5.87 in 2023 from N3.82 in the corresponding period.

“We are pleased to report a strong and successful fiscal YTD performance for BUA Foods having delivered strong top and bottom line returns across business portfolios and key financial metrics,” said Engr. Ayodele Abioye, the Managing Director of BUA Foods.

“We have experienced double-digit growth within the period with revenue YTD up by 81 percent and PAT by 54 percent, underscoring the strength of our business strategy, dedication of our exceptional team and support of our strategic partners.

These were achieved despite the complexities presented by rising inflation, high interest rate resulting in pressure on consumer income, and Naira depreciation which led to FX losses. Clearly, BUA Foods Plc has not only weathered the storm but has thrived.

“We have strategically navigated challenges by embracing change, doubling down on efficiency, and carefully optimizing costs without conceding our commitment to quality and service. Moreover, our focused investments in expansion projects is on course, providing a solid foundation for further growth and competitiveness,” summed Abioye.

https://moneycentral.com.ng/markets/article/bua-foods-plc-the-most-successful-consumer-goods-firm-in-nigeria/

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UACN Property Development Company (UPDC), investment firm United Capital and Zenith Bank, have the highest dividend yield on the NGX.

The firm’s healthy dividend yields will support their performance relative to other equities as the full-year, 2023 annual dividend payout period approaches for shareholders.

Dividend yield is the financial ratio that measures the quantum of cash dividends paid out to shareholders relative to the market value per share. It is computed by dividing the dividend per share by the market price per share and multiplying the result by 100.

UPDC has the top dividend yield of 15.2%, then United Capital 9.1%, followed by Zenith Bank 8.7%. Others in the top-10 include Mansard at 8.2% and GTCO 7.6%.

With bond yields close to 18%, investors are looking to buy stock with higher dividend yields for their portfolios.

Zenith Bank’s announcement that net income otherwise known as profit after (PAT) was up 149.05 percent to N434.34 billion in September 2023, compared with N223.91 billion recorded as at December 2022, augurs booming profits across the banking sector.

MoneyCentral forecast Zenith’s next payout for full year 2023 will show a slight annual increase, compared to 2022 levels.

https://moneycentral.com.ng/exclusive/article/updc-united-capital-zenith-bank-high-dividend-yield-to-support-shares-as-payout-nears/

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The gap between the ‘Haves and Have-nots’ in Nigeria’s banking system is widening, further validating the central bank’s governor’s call for another round of recapitalisation.

The earnings inequality for Nigerian lenders in terms of profitability as well as total assets are ominous because the small and mid-sized banks do not have enough buffers to shield them from macro shocks or headwinds.

Peering through their books shows Zenith Bank, Access Bank, Guaranty Trust Holdings, FBN Holdings, and United Bank for Africa (UBA), collectively generated a combined profit after (PAT) of N1.73 trillion as at September 2o23.

That compares with N188.01 billion combined net income of Stanbic IBTC Holdings, First City Monument Bank, Sterling Bank, Fidelity Bank, and Wema Bank, according to data gathered by MoneyCentral.

The cumulative total assets of the five largest banks or “big five” stood at N78.87 trillion as at September 2023, compared with N14.13 trillion for the small ones.

In 2022, big banks or fantastic five posted a collective N648.83 billion as net income or profit, and that compares with N113.52 billion realised by the Tier-2 lenders.

In 2021, Fantastic five posted a combined net income of N441.73 billion, and that is much higher than the N97.02 billion by the small lenders.

The earnings inequality has widened in 2023 than any other year because the big five made more money from foreign exchange revaluation gains and interest income investment securities as a strong liquidity position means they invest more in government securities.

Unity bank, a small and midsized lender, is technically insolvent and only a takeover can salvage it from collapse which will jeopardise depositors money.

The plan by the central bank governor Olayemi Cardoso to implement a new round of Nigeria Bank recapitalisation will pave the way for more synergies, shrink the gap between the ‘Haves and Have-nots, and avert a future banking sector crisis.

The last time the Central Bank of Nigeria (CBN) forced through a Nigeria bank recapitalisation was in 2004, when Charles Soludo, former CBN Governor, raised their capital base from N2 billion to N25 billion.

“There is the need for banks to recapitalise so that they can continue to exist,” said Samuel Nzekwe, former President, Association of National Accountants of Nigeria (ANAN).

“In addition, they need to recapitalise a little bit so that they can be in strong standing in case of any eventuality and problems,” Nzekwe said.

https://moneycentral.com.ng/exclusive/article/nigerias-growing-bank-divide-validates-cardosos-recapitalisation-plan/

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Olayemi Cardoso, Nigeria's Central Bank Governor

Nigeria’s central bank has urged lenders to recapitalise their balance sheets in the face of high inflation, currency weakness and slow economic growth.

“We must make difficult decisions regarding capital adequacy,” Governor Olayemi Cardoso said on Friday in a speech at the Chartered Institute of Bankers of Nigeria’s annual dinner in Lagos.

“As the first steps, the central bank will be directing banks to increase their capital,” he said.

Nigeria’s annual inflation rate rose to 27.33 per cent in October from 26.72 per cent in the previous month, the National Bureau of Statistics (NBS) said.

Nigeria’s Gross Domestic Product (GDP) grew by a tepid 2.54% (year-on-year) in real terms in the third quarter (Q3) of 2023.

Banks were also 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 were positioned net long the dollar have booked FX gains.

The CBN in September asked deposit money banks (DMBs) to stop utilising foreign exchange (FX) revaluation gains to pay dividends or finance operations.

The average capital adequacy ratio for Nigerian lenders stood at 11.2% in June. The regulatory requirement is 10%, or 15% for lenders with international operations.

https://moneycentral.com.ng/markets/article/nigerian-banks-to-undergo-new-recapitalisation-exercise-cardoso/

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The Central Bank of Nigeria (CBN) has adopted an explicit inflation targeting regime to foster price stability, and is committed to achieving monetary and price stability, according to Olayemi Cardoso, Governor of the apex bank.

Cardoso made the statement in his first policy speech on Friday since becoming governor in September, at the Chartered Institute of Bankers of Nigeria’s annual dinner in Lagos, Nigeria’s commercial hub.

Inflation targeting is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual rate of inflation. This is known as the target rate.

“This is not just technical but has real life implication. We have been focused on this in the past 2 months,” Cardoso said.

“Dislocation of our monetary transmission mechanisms is rendering the MPC policies redundant. We need to ensure these meetings are effective. Regular open market operations (OMO) to mop up liquidity has also ensued.”

The principle of inflation targeting is based on the belief that long-term economic growth is best achieved by maintaining price stability, and price stability is achieved by controlling inflation.

Nigeria’s annual inflation rate rose to 27.33 per cent in October from 26.72 per cent in the previous month, the National Bureau of Statistics (NBS) said.

The CBN envisions that it will rebuild its reserves with daily FX market trading of $1 billion, Cardoso said.

https://moneycentral.com.ng/exclusive/article/cbn-adopts-inflation-targeting-committed-to-monetary-and-price-stability-cardoso/

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Sean ‘Diddy’ Combs and the singer Cassie have reached a settlement just one day after she filed an explosive lawsuit accusing the hip-hop mogul of rape and numerous instances of physical abuse.

The parties announced on Friday evening that they had reached an agreement to resolve the case, though they disclosed no details about the terms of the settlement.

“I have decided to resolve this matter amicably on terms that I have some level of control,” Cassie, whose full name is Casandra Ventura, said in a statement. “I want to thank my family, fans and lawyers for their unwavering support.”

In a statement, Mr. Combs said: “We have decided to resolve this matter amicably. I wish Cassie and her family all the best. Love.”

For Mr. Combs, the settlement quickly shuts down what could have been a risky and potentially embarrassing process of legal discovery — in which reams of evidence are made public — and a possible trial. And Ms. Ventura, who has already aired her accusations through a public complaint, avoids a cross-examination by Mr. Combs’s attorneys.

In a lawsuit that drew international attention, Ms. Ventura — who signed to Mr. Combs’s Bad Boy label in 2005, when she was 19, and dated him for about a decade — accused Mr. Combs of what she said was years of beatings, controlling behavior and various forms of sexual abuse, including a rape. In response, a lawyer for Mr. Combs, Ben Brafman, said, “Mr. Combs vehemently denies these offensive and outrageous allegations.”

According to Ms. Ventura’s suit, which was filed on Thursday in Federal District Court in Manhattan, Mr. Combs assaulted her numerous times, leaving her bloodied and bruised; she said his employees sometimes took her to hotel rooms for days to recover out of the public eye.

Mr. Combs, who started Bad Boy in 1993, became one of the most powerful and successful figures in the hip-hop industry, working with stars like the Notorious B.I.G. and Mary J. Blige, and helping to transform rap music and culture into a global pop phenomenon and a major business.

Last year, Mr. Combs received a lifetime achievement honor at the BET Awards, and in September he was given the global icon award at MTV’s Video Music Awards.

https://moneycentral.com.ng/markets/article/cassie-settles-lawsuit-accusing-diddy-of-rape-and-abuse/

While Hamas terrorists from the Gaza strip invaded and murdered an estimated 1,200 Israelis in cold blood on October 7, there had been close economic integration between the 2 peoples in recent times and it would surprise many to know that the Israeli Shekel is the major currency of trade in the Gaza strip.

MoneyCentral looks at how the Israeli Shekels became the major currency of the Gaza strip despite hostilities.

Since Hamas, which is considered a terrorist organization by the U.S and European Union took control of the Gaza strip in 2007, it has been unable to improve the lives of its 2.3 million people.

A UN report in August said 81% of Gazans were poor and cited an unemployment rate of 47%. This meant that workers from Gaza often sought employment in Israel, and as of October 6 (before Hamas struck) about 21,000 workers were being allowed into Israel daily from the Gaza strip to work in many of the farms and Kibbutz that were attacked by Hamas.

These workers usually earned much more than they could in Gaza and helped to bring some form of economic integration between both territories (Israel and Gaza) before the Hamas rampage.

Israeli Shekel as main currency in Gaza

Because the Gaza strip does not have its own currency, since there is no State of Palestine as yet, it is forced to use other currencies to trade, chief of which is the Israeli Shekel and sometimes the Jordanian dinar.

The Israeli Shekel is however used for the majority of commercial transactions, especially in retail – shops and restaurants.

United States dollars are also a bit common although they are not used in retail settings but $100 bills can be dispensed in the ATM machines.

United States dollars could also easily be exchanged for shekels at the many exchange services that were available before Israel began its latest military campaign in the strip.

The Oslo Peace accords signed in 1995 between Israel and the Palestinians also helped to integrate the Palestinian economy into the Israeli one through a customs union.

Protocols (as part of the Oslo accords) regulated the relationship and interaction between Israel and the Palestinian Authority in six major areas: customs, taxes, labor, agriculture, industry and tourism.

The Protocol determined that Israeli currency, the New Israeli Shekel (NIS), is used in the Palestinian territories as a circulating currency which legally serves there as means of payment for all purposes and to be accepted by the Palestinian Authority and by all its institutions, local authorities and banks.

Since 1 January 2003, the new shekel has been a freely convertible currency. Since 7 May 2006, new shekel derivative trading has also been available on the Chicago Mercantile Exchange. This makes the new shekel one of a few world currencies for which there are widely available currency futures contracts in the foreign exchange market.

It is also a currency that can be exchanged by consumers in many parts of the world.

Israel’s strong economy and stable currency

Israel is a superpower of sorts in the region with a largely stable currency and strong resilient economy as opposed to the bankrupt Lebanon, war torn Syria and struggling Egypt.

Israel’s shekel has mostly recouped its losses since the war between Israel and Hamas began, with the central bank revealing last week that it sold more than $8 billion in October to defend it.

At the onset of the war, the central bank had pledged to sell as much as $30 billion from its foreign-currency reserves — and to provide as much as $15 billion more via swaps — to support the shekel.

The Israeli central bank still has enough fire power to defend the currency during the war with Hamas with $191.2 billion in foreign reserves as at October 2023.

Israel’s $500 billion economy has also benefitted from recent gas exports from fields in the offshore Mediterranean adding to other diverse sectors like technology, agriculture, real estate and financial services.

Egypt the only other country with a border with Gaza (and whose currency in theory could be used in the strip), is however struggling with economic downturn, and its authorities have devalued the currency three times since March 2022, roughly halving the Egyptian pound’s value and sending local prices soaring.

History of Gaza

Egypt ruled Gaza until it lost it to Israel in the 1967 Six-Day War. Israel pulled out of Gaza in 2005, however it maintains control of Gaza’s airspace and maritime territory and, along with Egypt, has long enforced a blockade of the territory.

Gaza Strip is a territory of about 25 miles (40 km) long and 7.5 miles wide bounded by Israel, Egypt and the Mediterranean Sea.

https://moneycentral.com.ng/exclusive/article/why-gaza-uses-israeli-shekels-as-currency-despite-war/

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Music mogul Sean ‘Diddy’ Combs has been accused of rape and repeated physical abuse by his former girlfriend, R&B legend Cassie, in a new federal lawsuit.

Cassie, whose real name is Casandra Ventura, said in a legal document that was filed in Manhattan’s Federal District Court: “After years in silence and darkness, I am finally ready to tell my story, and to speak up on behalf of myself and for the benefit of other women who face violence and abuse in their relationships.”

“With the expiration of New York’s Adult Survivors Act fast approaching, it became clear that this was an opportunity to speak up about the trauma I have experienced and that I will be recovering from for the rest of my life,” Ventura said.

The lawsuit in Manhattan federal court says Combs, who was then 37 years old, in 2005 lured the then-19-year-old Ventura into a professional relationship by signing her to his label, Bad Boy Records, and within several years lured her to a sexual relationship, and introduced her “to a lifestyle of excessive alcohol and substance abuse.”

The suit alleges that Combs raped Ventura in her home after she tried to leave him, “blew up a man’s car after he learned that he was romantically interested in” Ventura, “often punched, beat, kicked and stomped on” her.

And it says Combs, who has seven children, “forced Ms. Ventura to engage in sex acts with male sex workers while masturbating and filming the encounters.”

“Throughout their relationship Mr. Combs was prone to uncontrollable rage, and frequently beat Ms. Ventura savagely,” the suit alleges.

“These beatings were witnessed by Mr. Combs’ staff and employees of Bad Boy Entertainment and Mr. Combs’s related businesses, but no one dared to speak up against their frightening and ferocious boss.”

In addition to Combs, the suit names Bad Boy Records, Bad Boy Entertainment, Epic Records, and Combs Enterprises as defendants.

“No human should have to endure what Ms. Ventura has endured,” said her lawyer, Douglas Wigdor.

“Her ability and willingness to speak up against the abuse she suffered, and seeking to hold accountable her abuser and those who enabled the abuse, is a testament to her strength and resilience. We are honored to represent this brave victim in her pursuit of justice.”

Ben Brafman, a lawyer for Combs, did not immediately respond to a request for comment about Ventura’s allegations.

Combs, one of the most influential and successful executives in music, founded hip hop label Bad Boy in the early 1990s. He also launched a clothing label, Sean John, and helped develop the Ciroc vodka brand. As recently as last year, Forbes estimated his net worth at $1 billion.

https://moneycentral.com.ng/markets/article/sean-diddy-combs-sued-for-rape-sex-trafficking-by-ex-girlfriend-cassie/

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MultiChoice Group extracted USD91m from Nigeria in the six months ended 30 September 2023 (H1, 2024), and halted the use of futures contracts to hedge its foreign currency exposure to the country, due to losses on the contracts.

“As the gap between the official and parallel naira rates narrowed following the material depreciation in the official naira rate during the reporting period…. the group extracted USD91m from Nigeria in the period, at an average rate of NGN794: USD (1H FY23: NGN634: USD), incurring extraction losses of USD28m (ZAR0.5bn) in the process,” MultiChoice said in its latest financial statement released yesterday, seen by MoneyCentral.

After incurring losses of ZAR44m in the half year period of last financial year, related to fair-value movements on Nigeria futures contracts, the group discontinued the use of Nigerian futures contracts during FY23.

“MultiChoice stopped Margin deposits on Nigerian futures hedging instruments that are not highly liquid and have maturities of greater than three months on initial recognition. During FY23, all margin deposits matured,” the firm said.

The Central Bank of Nigeria (CBN) recently cleared matured foreign-exchange (FX) forward contracts with an unspecified number of banks, according to spokesman Isa Abdulmumin.

The amount of overdue forward payments was estimated at about $6.7 billion, according to government officials.

That backlog had weighed on the naira, which fell to a record low of almost 1,000 per dollar on the official market last week.

Other insights from MultiChoice earnings report

Nigeria is the MultiChoice’s largest market in the Rest of Africa segment and the popular reality series Big Brother Naija which entered its eighth season, delivered record advertising revenues in local currency for MultiChoice.

Nigeria tax dispute

The group has two ongoing Nigerian tax matters, one involving MultiChoice Nigeria Limited and the second involving MultiChoice Africa Holdings B.V.

On 16 February 2022, an agreement was reached with the Federal Inland Revenue Service (FIRS) that legal proceedings will be stayed and that an integrated tax audit will commence for both entities.

The audit process, which covers corporate income tax, value added tax and transfer pricing is ongoing, but has taken longer than initially anticipated.

As part of the process, the group made total deposits of ZAR1.3bn up to FY23 on a good faith and without prejudice basis (no further payments were made during the period). The deposits have been recorded as current receivables pending the outcome of the audit process.

Losses related to Nigeria’s FX regime

MultiChoice reported higher non-quasi equity foreign exchange losses on the intergroup loans with MultiChoice Nigeria Limited.

This follows the depreciation of the NGN against the USD from a closing rate of NGN464.50 in FY23 to NGN789.50 in 1H FY24.

Losses were also reported on cash remittances, due to differences between the Nigerian I&E rate used by the group for translation and the Nigerian parallel rate at which cash has been remitted.

The group achieved an average remittance rate of NGN794: USD (1H FY23: NGN634: USD) during 1H FY24.

https://moneycentral.com.ng/exclusive/article/multichoice-repatriates-91m-from-nigeria-in-h1-stops-use-of-futures-contracts/

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By Ojoma Yusuf, Yola

Amina Hassan a 20 years old bride of Mubi North LGA, Adamawa State has confessed to setting her husband’s house ablaze for his refusal to divorce her.

The Adamawa State Police Command has apprehended the accused in connection to the crime and is being investigated as ordered by the Commissioner of Police, Afolabi Babatola.

Amina Hassan of Shuware in Mubi North LGA, got married to her husband, Muhammed Auwal about 5 weeks ago and after the union she suddenly demanded for a divorce, for reasons best known to her.

The accused in her statement to the Police Command Spokesperson, SP Suleiman Yahaya Nguroje on Tuesday, noted that she had set the house on fire because of her husband’s refusal to end their union.

She said: “we made an arrangement that he will divorce me after the marriage. I met him and pleaded with him to divorce me, but he remained adamant.”

“He descended on me and started beating me instead of divorcing me as a result of which I lost my temper and set the house ablaze,” she further narrated.

It was gathered that a few days before the wedding, Amina told her parents that she was no longer interested in the marriage, but her parents refused because they had distributed invitation cards.

After the marriage, the bride sought for help from a native doctor to turn the heart of her husband away from her or to make him hate her so that he would divorce her.

After collecting the sum of N12,000 from her for the job, the native doctor performed all necessary rituals and succeeded in turning her heart away from him instead of his heart away from her as agreed, according to the young bride Amina.

In her statement, she lamented that the native doctor has since relocated to Maiduguri in Borno State and all effort to reach him has proved abortive. She regretted her actions as she advised young ladies to always employ patience in all their endeavors.

https://moneycentral.com.ng/moneycentral-north/article/adamawa-bride-sets-house-ablaze-for-husbands-refusal-to-divorce-her/

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The Adamawa bride

The Nigeria Sovereign Investment Authority (NSIA), recorded a sizable jump in pre-tax profits to N792.9 billion ($996m) in the first half (H1) of 2023, from a N3 billion loss in the corresponding period in H1 2022 according to unaudited management accounts, seen by MoneyCentral.

The gains in the H1, 2023 results of the NSIA which manages Nigeria’s Sovereign Wealth Fund (SWF) were largely driven by foreign exchange and revaluation gains.

NSIA moderates FX risks by maintaining a significant 93.8% of its financial assets as US$ investments as at 31 December 2022. As at the same date, a sensitivity analysis conducted reveals a potential gain of ₦132.7 billion (13.2% of shareholders’ funds) should the naira depreciate by 15% against the US$ and vice-versa.

Thus the NSIA benefited from its long net foreign currency asset position with the recent harmonisation of exchange rates in Nigeria and the attendant 42% depreciation of the naira at the official market.

Thus, annualised return on assets (ROA) and return on equity (ROE) surged to 106.1% and 113.2% respectively, in naira terms.

In USD terms and discounting FX volatility impact, profitability also surged to $595.1 million from a $12.2 million loss position in the corresponding period in H1 2022.

This translated to an annualised ROA and ROE of 48.1% and 51.7% respectively.

The NSIA’s future generations fund (FGF) which warehouses hedge fund, private equity PE and long-only equity investment was up by 7.4% in H1 2023, relative to the 3.9% dip in FY 2022, as many indexes across the globe have improved their performance in H1 2023. The stabilisation fund (SF) and Nigeria infrastructure fund (NIF) also returned 4.7% and 2% respectively in the six months ended 30 June 2023.

In H1 2023, the Authority’s interest income rose 47.4% year-on-year to N37.3 billion.

Meanwhile, the NSIA received a capital injection of $45 million in the first six months (H1) of 2023, from price-based royalties from oil companies.

The Petroleum Industry Act (PIA) signed in August 2021 introduced a price-based royalty of up to 10% on crude oil sales that would be credited to NSIA as equity.

Analysts expect more capital will flow to the NSIA as more crude oil contracts are migrated to the PIA regime, and more oil exporting companies fully adopt the PIA.

https://moneycentral.com.ng/exclusive/article/nsia-half-year-profit-soars-to-n792bn-receives-45m-royalty/

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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/