₦airaland Forum

Itel’s survival is premised on understanding the market especially what consumers want in terms of having value for money” – 

Brand Spur Nigeria had a chat with Oke Umurhohwo, the marketing communications manager for Itel, especially on how the Itel brand has been able to become a toast of  Nigerian mobile phone users irrespective of class. Oke is a seasoned marketing communications expert with flair and passion for new media, Oke’s career has seen him work as a brand builder both for startups and established businesses. Also as a budding politician with strong political values and ideologies; Oke has worked closely with stalwarts like Jimi Agbaje, Otunba Segun Adewale aka Aeroland among others. With more than 8 years work experience, he has grown within the ranks in Itel, having become the marketing communications manager of the company from a digital supervisor in less than 2 and half years in the business. This attests to his work commitment and capabilities as an individual.

See excerpts from the interview below:

How has Itel been able to survive in the Nigerian harsh economy?

Itel’s survival is premised on the understanding of what the market especially what consumers want in terms of having value for money. The average mobile phone user wants a reliable mobile phone that is also affordable. The idea has always been to empower the budding mass market in Nigeria i.e. the socio-economic class: C, D and E who invariably are the regular and average Nigerians out there. This class of people also forms the bulk of the society close to more than 90% of the population. They are the artisans, entrepreneurs, fresh graduate, bus drivers, the low-income earners, the market men and women and most importantly students. Itel’s products are differentiated by pricing, we are not contesting with the high-end phones meant for high salary earners and the socio-economic and B, so we have phones that are less than N10,000 for the average Nigerian. Itel is for everyone, and for as low as N12,000-13,000, you can get our smartphone and do all the basic things you want your smartphone to do. Itel has been able to pay attention to the demands of the market and has been able to give them the products that will be able to satisfy their everyday needs.

READ: UNILAG STANDS STILL FOR THE ITEL MOBILE TAKEOVER, ROLLS OUT GIFT ITEMS (PHOTOS)

How long has Itel been in Nigeria and how successful is the brand?

Itel has been successful in Nigeria, having been in the market for 10 years now. Last year, we were the highest selling mobile phone brand in Africa, overtaking Samsung and this year we have been doing well as we are among the top three phone brands in terms of sales value. So if we are not doing well nobody will buy our phones.

What has Itel done that different that has stood them out or is it just the pricing?

No, it’s not just the pricing but it is a major factor also, the quality of the phones have improved a lot compared to when we started then and there is also the after sales services for phones under 1-year warranty, unlike some brands that don’t give after sales services. So, the price, quality and after-sales services is what has contributed to our success stories.

Mobile phone games are trending at the moment, why is it that Itel does not come with preloaded games?

You see, we focus a lot on consumer feedback, now the majority of our consumers according to our research wants phones that are as free as possible making them decide what they want in their phones. In a situation whereby they think that candy crush is the most popular game for their phone, they can download it themselves or have other games. So we try to put the basic things that every user will need on the phone to allow the consumers determine what they want and in some of our stores, they can actually help them install any app they want so that should not be an issue.

READ: THRILLS, POMP IN ANAMBRA AS ITEL MOBILE STORMS AGUATA TO CELEBRATE UFUMA NEW YAM FESTIVAL (PHOTOS)

The Nigerian government has been talking about patronizing made in Nigerian product why has Itel not thought of establishing a factory here in Nigeria?

We are already working on that and it will be ready in the next few years.

Talking about market positioning do you think you can sustain yourself in this market; what strategies will you introduce?

We are not competing with other brands, our mass market is a very big market. Let’s take Nigeria for example, we have about two hundred million population and they say about 80% of Nigerian population falls under that category of mass market, so the mass market now includes from C, D and E even as far as lower B class, so we will keep having students, we will keep having low-income earners, we will keep having people who live outside Lagos, Abuja and Port Harcourt, so in the next 10 years that market cannot be saturated because we will keep having people that are buying their first phone because they cannot afford a high-end phone or those with a high-end phone but want an affordable second phone; so the market cannot be saturated in the next few years.

Other brands are rolling out large screen sizes, but Itel produces portable screen size phones knowing that there are lovers of large screen phones, why is that?

At Itel, we have big size phones and we position our products into three major smartphone models and one tablet. For the tablet we have the 7inches which we call the Prime, while for the smart phones we demarcated it into three major segments the A series, P series, and the S series. So the A series is the android phones for those that are just leaving torchlight phones to androids as they need phone that can browse and do other things and we have phones from 4-5inches in the A series. We also the have the 5.5inches, even the P series which is the Power series also has the screen of 5.5inches and the S series – Selfie series, it is trendy and youthful and it is targeted at those who want to feel ‘among’. It also has the 5inch and 5.5inches. Our latest phone the P32 comes with 5.5inches screen so it’s has big as any other smart phones. There is an S series to be unveiled soon, it will with a 6 inch screen. Yes, Itel has big screen phones to cater for everyone.

Looking at the future mobile phone market in Nigeria, what are the trends you think will likely come up in the future and how ready are you to key into it?

The mobile phone market in Nigeria is still very dynamic. There are some predictions we might say will come to pass, but at the same time the Nigerian consumer psychology we still slow them down. Like about 2-3years ago, it was predicted that by 2018 about 60% of the market will be using 4g services but the usage is still less than 20%. Airtel is just picking up 4G across some states in Nigeria, like Lagos, Abuja and Rivers, aside those three locations, the rest are yet to be connected. There is also the issue with 4G dominant because it means  a lot of people will be able to do video streaming but you see a lot of people are shying away from video streaming because of high data cost, so there are a lot of dynamics that is unpredictable especially in Nigeria so in the next few years, there will be higher smart phone penetration especially in the northern part of the country, more people will move away from the feature phones to smart phones. I will say more of the lite apps – Facebook Lite, Youtube Lite, Instagram Lite etc. will take over and there will be more synergy with the major operators such as giving out data bundle after the purchase of a phone. Another thing is the sales of phones on a contract basis; Itel is currently working with some banks to see if this will be possible as seen in developed markets across the world. We are also talking to the banks to see which of our phones can be given out to avail the buyer to pay in installment or the bank might decide to pay us and collect the money from the customer. Another trend is 4G, more customers will get on the 4G wagon by purchasing 4G enabled phones and Itel as a forward thinking brand will also be introducing more 4G phones very soon asides the S32lte and A22 that are 4G enabled among others.

Looking at Itel what are your goals for the Nigerian market in the next 5-10 years?

I think we will emerge the No1 phone brand in Nigeria before 5 years, as of now, we are among the top three brands and the margin is very close.

What will be your advise to upcoming marketers?

I will say be smart, identify opportunities and go for it. It is not all about hard work, but smart work. Increase your knowledge space. Do not be limited to a particular field.

SOURCE : https://brandspurng.com/itel-to-become-the-number-1-phone-brand-in-nigeria-before-2022-plans-to-build-phone-factory-soon/

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British singer, Seal, is currently in Nigeria and has visited Afrobeat legend, Femi Kuti, and his family at the New Afrika Shrine in Lagos.

Femi Kuti, his son, Made, and his sister, Yeni, shared photos of the visit on Instagram.

Femi also revealed that Seal was visiting and is working on a performance in Lagos.

Seal, whose real name is Henry Adeola Samuel, was born in London to a Nigerian mum and a Brazilian dad.

A Grammy award-winning singer, he has sold over 20 million records worldwide. His first international hit “Crazy” was released in 1991 while his most celebrated song “Kiss from a Rose” dropped in 1994.

SOURCE: https://brandspurng.com/british-singer-seal-visits-femi-kuti-at-afrika-shrine-pictures/

The Equity Market today gained 1.57%, reversing Monday’s downtrend. The upturn was due to gains in Dangote Cement and 10 others. Market breadth closed negative, recording 11 gainers against 25 losers. 

In summary, the All Share Index (ASI) grew by 542.68 absolute points, representing an increase of 1.57%, closing at 35,206.16 points. Similarly, the Market Capitalization grew by N198.12 billion, representing an increase of 1.57%, closing at N12.85 trillion.

The Upturn was impacted by gains recorded in medium and large capitalized stocks, amongst which are; DANGCEM (+6.98%), DANGFLOUR (+6.49%), OANDO (+5.26%), GUARANTY (+2.30%), UCAP (+1.42%), HONEYFLOUR (+0.68%) and FBNH (+0.52%).

FOREIGN EXCHANGE

The Naira at the inter-bank rate closed unchanged at N306.10 against Monday’s closing price.

The Investors and Exporters (I&E) FX window opened at N362.12, traded high at N364.00 and eventually closed at N362.60 representing 0.03% depreciation against Monday’s closing price. A total of $167.78 million was transacted through the I&E window today.

We expect the FX Market to trade within an existing range in the next session.

MONEY MARKET

Overnight (O/N) rate closed at 7.75%, representing a 1.83% depreciation against Monday’sclosing position, while Open Buy-Back (OBB) rate closed at 6.83% representing a 2.00% depreciation against Monday’s closing position.

We expect the Money Market to trade within an existing range in the next session.



SOURCE: https://brandspurng.com/dangote-cement-10-others-push-equity-market-upwards-posts-1-57-loss/

The total value of capital importation into Nigeria stood at $ 5,513.55 million in the second quarter of 2018. This was a decrease of 12.53% compared to Q1 2018, but a 207.62% increase compared to the second quarter of 2017. The decline recorded in the second quarter was as a result of a decline in Portfolio and Other Investments, which declined by 9.76% and 24.07% respectively. The largest amount of capital importation by type was received through Portfolio investment, which accounted for 74.7% ($4,119.5m) of total capital importation, followed by Other Investment, which accounted for 20.5% ($1,132.8m) of total capital, and the Foreign Direct Investment FDI, which accounted for 4.7% ($261.4m) of total capital imported in the second quarter.

Capital Importation by Type

Capital Importation can be divided into three main investment types: Foreign Direct Investment (FDI), Portfolio Investment and Other Investments, each comprising various sub-categories. Since 2017 Q2, Portfolio Investment has been expanding faster than the other two categories. Although the absolute value of Portfolio Investment declined in Q2 on a quarterly basis, falling from $4,565.09 million in Q1, 2018 to $4,119.46 million in Q2, 2018, it remained the largest component of the total Capital Importation in the quarter under review, followed by Other Investments, and then FDI. The chart below shows the composition of Capital Importation in Q2, 2017 and Q2, 2018.

Foreign Direct Investment (FDI)

In the second quarter of 2018, total Foreign Direct Investment stood at $261.35m, growing by 5.97% from the first quarter of the same year, but falling by 4.75% when compared to the corresponding quarter of last year. FDI represented only 5% of the total capital import. Equity Investment dominated FDI in the second quarter, accounting for 97.85% of the total FDI received in the second quarter. Capital Importation in the form of Other Capital saw significant expansion, from only $5,000 as recorded in Q1 to $5.63 million in Q2, an increase of over 1000percent compared to the same period of last year.

Portfolio Investment

Portfolio Investment remained the most significant component of total capital inflow into Nigeria in the second quarter of 2018, although it contracted by 9.76% over the previous quarter. The total value of Portfolio Investment in Q2 recorded was $4,119.46 million, which was a 434.64% growth compared to Q2, 2017 ($770.51 million). The 9.76% Q-on-Q decrease was due to a fall in the largest sub-component– Money Market Instruments. Capital Importation in the form of Money Market Instrument stood at $2,670.93 million in the second quarter, which was a 24.29% decrease over the previous quarter. Investments in both Equity and Bonds (under Portfolio Investments) reported steady quarter-on-quarter growth, with 49.43% and 19.13% respectively. It is worth noting that investments in Bonds under this Capital Importation type has been steadily increasing since Q2, 2017, and in Q2 2018, it accounted for 9.71% of total Portfolio Investment.

Other Investments

Other Investments amounted to $1,132.75 million in the second quarter of 2018. This category continued its decline since the beginning of 2017, from $1,526.9m in Q4, 2017 down to $1,491.9 in Q1, 2018, and further falling by 24.07% in Q2, 2018. This category accounted for 20.5% of total Capital Importation in the second quarter of 2018. As in previous periods, Another Investment was dominated by Loans ($1,121.66 million), which accounted for over 99% of Other Investments in the reviewing quarter. Other Claims fell sharply, from $223.49 million in Q1 to $11.08 million in Q2. Trade Credits and Currency Deposits posted no inflow in the second quarter of 2018.

Capital Importation by Sector

By sector, Capital could be imported either in the form of Shares or directly imported into different economic sectors of the economy. Capital importation as shares, which is closely related to Equity investment (FDI and Portfolio Investment) dominated the second quarter of 2018 reaching $4,091.55 million, or 74.21% of the total capital Importation in the quarter. The contribution of Share investment increased marginally by 0.03% in the second quarter of 2018.

A total of $1,422.15 million or 25.79% of the total foreign capital was directly invested in different economic sectors in Q2,2018. This was a decline of 43.36% from the $2,510.90 million recorded in the previous quarter. In the second quarter of 2018, the Servicing sector became the leading recipient of foreign capital Inflow into Nigeria, attracting $479.85 million. The banking sector, which followed, recorded $294.96 million in the second quarter of the year, a considerable reduction from the $1,180.01 million realised in Q1, 2018. Production, Financing and Agriculture sectors received $479.9million, $150.32 million and $104.97 million in foreign capital investment respectively in the second quarter. These five economic sectors together accounted for over 87% of the total capital investment (excluding Shares). The Trading sector attracted $60.35 million in q2, 2018 which was a significant growth from the $27.33 million recorded in the previous quarter. The IT Service sector also had substantial improvement in foreign capital inflow in the quarter under review, recording a value of $48.04 million in q2, 2018, up from the $1.10 million recorded in the first quarter.

Capital Importation by State

The Federal Capital Territory, Abuja, at $2,547.73 million, maintained its lead among recipients of capital import in the second quarter of 2018 after surpassing Lagos in the fourth quarter of 2017. This represented 46.21% of the total capital importation into Nigeria in the quarter under review and was followed by Lagos which received the second largest amount of capital inflow, $1,267.65 million or 30.08% of the total. When compared to the preceding quarter, however, the capital inflow into Abuja and Lagos, declined by 28.13% and 37.80% respectively. Abia State received $1,267.65 million, accounting for 22.99% of the total capital importation in the quarter. Abuja, Lagos, and Abia together represented more than 99% of the total capital import in the second quarter. Foreign capital investment in Akwa Ibom and Ogun recorded $16.10 million and $12.74 million respectively, a decline of 63.09% and 48.05%, over the previous quarter. Enugu, which only had marginal foreign inflow previously, recorded $1.31 million in the second quarter and became the eighth top destination in Nigeria to attract foreign capital investment.

Capital Importation by Country of Origin

The United Kingdom maintained its top position as a source of capital investment in Nigeria in the second quarter of 2018, with $1,772.53 million. This accounted for 32.15% of the total capital inflow in Q2,2018 but was a 21.29% decline from the previous quarter. Since 2010, the UK has accounted for the highest amount of capital importation in all but two quarters (both in the second half of 2015).

The US recorded $1,224.09 million total Capital Importation into Nigeria in the second quarter of 2018, which was a 2.85% decline from the amount recorded in the first quarter of 2018. The US has also been one of the most important origins in Nigeria, usually either the largest or second largest investor country.

Capital imports from the United Arab Emirates were $535.98 million while $297.32 million was imported from Switzerland. Capital inflow from Ghana in the second quarter of 2018 was $156.30, which was a 58.88% decline from the previous quarter.

Figure 8a: Capital Importation by Country of Origin in $ millions (2018 Q2)

Figure 8b: Capital Importation by Country of Origin in $ millions (2018 Q2)

Capital Importation by Bank

Capital is imported from financial institutions into Nigeria. In the second quarter of 2018, the bank through which the highest share of capital flowed was Stanbic IBTC Bank, accounting for 54.9% of the total foreign capital inflow, slightly up from the 48.5% share recorded in the previous quarter. This was followed by Standard Chartered Bank, CitiBank, Access Bank and Zenith Bank which accounted for 14.82%, 13.11%, 3.61% and 3.52% of the total capital importation in the second quarter of 2018 respectively. Together, the six banks accounted for nearly 90% of capital importation in Q2 2018.

Download Q2 2018 Capital Importation Report

SOURCE : https://brandspurng.com/q2-2018-total-value-of-capital-importation-into-nigeria-stood-at-5513-55m-nbs/

Tiger Brands Ltd. tumbled after Africa’s largest listed packaged-food maker said full-year profit fell as much as 37 per cent after one of its plants was blamed for South Africa’s listeriosis outbreak.

The shares dropped as much as 9.8 per cent, the most since March 5, the day after the South African government identified a Tiger Brands factory as the source of the outbreak that has killed more than 200 people. The company recalled products and suspended factories in response.

Full-year earnings were affected by a challenging consumer environment,with pressure on volumes and pricing, “significant” cost increases and the impact of the recall and plant closures, Tiger Brands said in a statement Thursday. Expenses were driven up by an unfavourable rand movement and higher fuel prices, among other factors, it said.

The implication of Tiger Brands’s profit warning is that the decline in second-half earnings is worse than that seen in the first half, despite lower forecast fixed-cost losses and a typically stronger performance by the company’s grains division in the second six months, Morgan Stanley analyst Vikhyat Sharma wrote in a note, describing the update as “below expectations.”

The Tiger Brands weighed on other South African food producers. Pioneer Foods Group Ltd. dropped 3.5 per cent, extending its decline to five days. An index of companies in the sector fell 4.1 per cent.

SOURCE : https://brandspurng.com/tiger-brands-full-year-profit-fall-by-37-after-listeriosis-outbreak-aftermath/

Oyo state government has demolished the popular musician, Yinka Ayefele’s N800 million music house, housing his radio station, Fresh FM, in Ibadan, Oyo state.

There was a week of rancour between the management of the building and the Oyo state government after a notice was served to the effect of demolition.



READ: YINKA AYEFELE BREAKS SILENCE OVER PROPOSED DEMOLITION OF MUSIC HOUSE

The notice which was addressed to Ayefele read, “Having failed to comply with the earlier stop work/quit/ contravention notice (s) served on your development or as your structure is found to be structurally defective/poses danger or constitutes a nuisance to the occupier or the general public, you are hereby ordered to vacate the site and remove the structure thereon within three days, failure of which the government shall effect the removal and commence legal action against you in accordance with Section 43 of the law.”



Reacting to the notice through his publicist, David Ajiboye; Ayefele said: “We don’t see it as a threat; instead we see it as a challenge because the planned demolition of the music house is politically motivated. Also, Yinka Ayefele in a statement said the construction of Music House followed due process.



Ajiboye further said that the organisation passed all required tests to erect the building on its current site and wondered why the government demolished the structure.

SOURCE: https://brandspurng.com/oyo-state-government-demolishes-ayefeles-n800m-music-house-photos/

Manufacturer of confectionery and food drinks, Cadbury Nigeria Plc, has released its unaudited financial statements for the first half of this year, recording a loss of N423.8 million during the period against the N766.4 million loss it posted in the same period of last year.

In the company’s financial scorecard released today, Cadbury Nigeria, however, reported a growth in its revenue, which went up by 8 per cent to N17.6 billion from N16.3 billion in H1 2017.

Also, the finance income appreciated by 10.7 per cent to N73.1 million from N66 million, while the firm recorded a 33.8 per cent increase in its other income to N25.4 million from N19 million.

However, the gross profit went down to N2.8 billion in H1 2018 from N3 billion in H1 2017, while the costs of sales rose to N14.7 billion in the first six months of this year from N13.2 billion in the first six months of last year.

Cadbury Nigeria stated in the results that it reduced its selling and distribution expenses by 18 per cent this time to N2.2 billion from N2.7 billion, while the administrative expenses were also trimmed to N771.1 million from N1.1 billion.

While the total assets of Cadbury Nigeria closed at N26.8 billion as at June 30, 2018, against N31 billion as at June 30, 2017, the total liabilities reduced to N15.5 billion from N20.4 billion, with the shareholders’ fund growing to N11.3 billion from N10.5 billion.

SOURCE : https://brandspurng.com/cadbury-nigeria-plc-records-n424m-loss-for-the-first-6-months-amid-rising-cost/

After successfully setting a new benchmark in the longest drinks-pouring category of Guinness World Records, Arla Dano has been conferred with the global record holder title in the category by the awarding institution.



The recognition is premised on the engagement of over 650 participants to achieve the longest drinks-pouring relay using Dano UHT Milk held on June 1 this year in commemoration of World Milk Day. Government and non-government representatives threw their weight behind the programme which intensified conversations on nutrition, healthy living and the dairy industry in Nigeria.



In the weeks leading up to the event, Dano milk had embarked on a massive outreach to orphanages and schools, educating kids and their handlers on the benefits of milk and nutrition generally. The outreaches also provided an opportunity for the brand to spread the milky goodness of Dano as they distributed milk products as well as household items to these facilities.

The record-breaking event itself, which was closely monitored by the awarding body, was a carnival-style milk party hosted by popular on-air-personality, Dotunand stand-up comedian, Funnybone. Beyond the active participants in the record-breaking exercise, there were a total of over 2,500 people gathered at the Muri Okunola park to join Dano milk as they attempted the feat. Dignitaries from the entertainment industry, corporate bodies and government institutions also graced the event, each of them extolling the nutritious benefits of milk as well as Dano milk’s efforts to promote good food habits in Nigeria.

Speaking at the event, Deputy Governor of Lagos State Dr Idiat Adebule commended the advocacy of Dano milk within the Nigerian dairy sector. She further urged the owners of the brand in Nigeria, TG Arla Dairy Products Enterprise, to continue maintaining the June 1 event as they had successfully done since 2016.

Wife of the Lagos State Governor, Mrs BolanleAmbode, highlighted the role of non-governmental stakeholders in the efforts of the state government to tackle nutrition issues, especially among children and youths. According to her, “The Lagos State government is passionate about giving the best to children, youths in schools and institutions across the state. Contributions from other stakeholders are equally important and will help position milk as an important component of mental and physical development.”

Despite a barrage of initial challenges to the project, the team behind the brand was able to achieve the feat. Marketing Manager, Ifunanya Obiakor linked the feat to determination, focus & resilience to surmount obstacles.

She notes: “It is said that every great achievement seems impossible at first until it is done. This saying reflects our journey to obtaining the Guinness World Records certificate for organizing the longest drinks-pouring relay. Achieving this feat in the face of obvious obstacles is a testament to the possibilities that abound when the will to win drives exceptional performance and when inner strength is deployed towards tackling and overcoming challenges”.

According to Managing Director, Mads Burmester, “We believe this award speaks to the fact that the human mind can achieve whatever it conceives. All that is required is the inner strength to follow through with the vision despite hard times. This is what the Arla Dano brand aims to represent in Nigeria and this is why we will continue to provide Nigerian consumers with high-quality dairy products to nourish them well enough to take on their day and life in general”

“We hope to positively influence our consumers and make them believe in themselves. Beyond the nutritional products that we offer in the dairy sector, we consider the importance to appeal to the mind and consciousness of our consumers.”

With the new feat, Dano further intensifies its presence and impact in the dairy sector of Nigeria’s economy with quality products for the young and old.

SOURCE: https://brandspurng.com/dano-milk-bags-guinness-world-records-certificate/

Three major revenue generating agencies, the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N22.45bn as the cost of revenue collections for June.



The National Bureau of Statistics (NBS) made this known in its Federation Account Allocation Committee, FAAC’s July 2018 Disbursement Statistics’ made available to Brand Spur Nigeria.

A breakdown of the amount shows that of the amount shows that the revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.82bn, N12.21bn and N5.42bn respectively as the cost of revenue collections.

The report shows that the Federation Account Allocation Committee (FAAC) disbursed the sum of N821.86bn to the three tiers of government in July 2018 from the revenue generated in June 2018.

The amount disbursed comprised of N687.35bn from the Statutory Account, N85.34bn from Valued Added Tax (VAT) and N7.32bn excess bank charges.

The federal government received a total of N315.01bn from the N821.86bn. States received a total of N194.51bn and Local governments received N147.05bn. The sum of N42.85bn was shared among the oil-producing states as 13% derivation fund while N100.00bn was transferred to Excess Crude Account(ECA).

Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N271.02bn was disbursed to the FGN consolidated revenue account; N5.75bn shared as share of derivation and ecology; N2.87bn as stabilization fund; N9.65bn for the development of natural resources; and N6.53bn to the Federal Capital Territory (FCT) Abuja.

Download July 2018 FAAC Report

SOURCE: https://brandspurng.com/ncs-firs-dpr-share-n22-45billion-from-faac-in-july-nbs/

Flour Mills of Nigeria Plc (FMN Group), a market leader in food and agro-allied products in Nigeria has emerged the winner as the Agro Investor of the year at the just concluded feed Nigeria Summit and Nigeria Agricultural Awards (NAA).



This is in recognition of the company’s continuous investments with the sector.



Critical players in the agricultural space converged between July 30th and 31st at the Sheraton Hotels and Towers, Abuja to deliberate on mechanisms for improved productivity in the sector, particularly in light of Nigeria’s frontline role in the African food security equation.

The Nigeria Agriculture Awards (NAA) is an annual event powered by AgroNigeria aimed at recognizing and rewarding men, women, businesses and institutions who have contributed to Nigeria’s re-emergence as a veritable force in agriculture. The main objective of the summit which was hosted by AgroNigeria under the theme; “Consolidating the Growth” was for stakeholders to track and enhance Nigeria’s self-sufficiency agenda, appraise advancements so far recorded.



On March 15, 2018, President Muhammadu Buhari commissioned the N50billion Naira Sunti Golden Sugar Estate (SGSE) Limited, a wholly owned subsidiary of Flour Mills of Nigeria (FMN) Plc and comprises of a cane production area and sugar factory. Also, FMN group recently introduced its Golden Penny Packaged Garri. The Golden Penny Garri is introduced as an affordable staple food choice for consumers to enjoy with an array of local foods to combine with. It is adjudged swell more than the regular Garri as well as “Dry & Crunchy” and fortified while delivering a tasty and delicious Ijebu Garri appeal.

The NAA designed 15 award categories: Achievement in Agriculture, Nagropreneur of the Year, Agric Bank of the Year, Agro-Brand of the Year, Agro-Innovator of the Year, Agro-Journalist of the Year, Corporate Social Responsibility Award, Agriculture Destination of the Year, Agro-Investor of the Year, Development Partner of the Year, R& Award, Input Company of the Year, Agro Ambassador of the Year, Agro Commissioner of the Year and Farmer of the Year Awards.

The summit which is supported by the African Development Bank (AfDB), Triton Group, Stallion Group, Notore Plc, Flour Mills of Nigeria (FMN), Global Alliance for Improved Nutrition, Fullmark and other stakeholders in the agricultural sector, also sought to address key national agricultural productivity issues like finance, market access, research, infrastructure, mechanization, ICT, youth and gender as well as apposite policies and legislation.

#FeedingtheNationEveryday #Fmnplc #TheFMNGroup #SuntiSugar

SOURCE: https://brandspurng.com/fmn-emerges-the-winner-as-the-agro-investor-of-the-year/

Toyota Nigeria Limited, TNL, has introduced a new generation of Camry into the Nigerian market.

The all-new generation of Camry is the eighth generation of the sedan from the stables of Toyota Motor Corporation (TMC) Japan, having evolved through generations since its first debut in 1982. So far, over 18 million units have been sold across regions as at 2015.

Speaking at the official unveiling in Lagos yesterday, Managing Director, TNL Kunle Ade-Ojo, said it is no exaggeration that the rich history of this model already imbues it with outstanding attributes peculiar only to all its siblings in our model line-up.

Ade-Ojo disclosed that from its upgraded, trendier exterior to its spacious interior design, the latest model of the Camry available in 2.5L and 3.5L engines will readily arouse in its lovers a driving pleasure unparalleled in its class. Indeed it is a remarkable package of safety, comfort and performance in equal proportion, he added.
Ade-Ojo who was represented by General Manager, Corporate Services, Bunmi Onafowokan, said the economic landscape of Nigeria has not been exactly clement, but that has not deterred the company.

“In fact, it has positively impacted on our creativity in responding to the demands of our dear customers all over Nigeria and we will continue to explore ways of keeping them satisfied and also uphold our culture of excellence,” he said. He commended the dealers for their consistent support even in challenging business climate to ensure that the company maintained its leadership position and the success of the Toyota brand in the Nigerian market.



Bayo Olawoyin, the Marketing Manager also added at the event that the development concept of the new generation Camry was to manufacture an outstanding vehicle with an appeal founded on rational aspects of Quality, Durability and Reliability (QDR), adding that the concept included an interior that projects an immediate feeling of excellence on one hand and a driving experience that everyone appreciates.

SPECIFICATIONS

Body type: 5-seater; 4-door, mid-size performance sedan
Engine: Front-engine; 3.5 V6; front-wheel drive
Transmission: 8-speed automatic
Peak output: 298bhp@6,600 rpm, 356Nm@4,700rpm
0 to 100km/h: sub-7.0 seconds (claimed)
Top speed: 250 km/h (drag limited; estimated)

AT A GLANCE

Good – Sporty exteriors; good power; remarkable fuel economy; refinement and space; reliability and residual value
Bad – It hasn’t completely abandoned its 80s’ dated appeal
Author’s rating – 8.5/10



SOURCE: https://brandspurng.com/toyota-nigeria-unveils-all-new-camry-in-nigeria/

Three major revenue generating agencies, the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N15.95bn as the cost of revenue collections for May.

The National Bureau of Statistics (NBS) made this known in its Federation Account Allocation Committee, FAAC’s June 2018 Disbursement Statistics’ made available to Brand Spur Nigeria.

A breakdown of the amount shows that of the amount, the revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.63bn, N7.40bn and N3.92bn respectively as the cost of revenue collections.

The report shows that the Federation Account Allocation Committee (FAAC) disbursed the sum of N668.90bn to the three tiers of government in June 2018 from the revenue generated in May 2018.

The amount disbursed comprised of N575.48bn from the Statutory Account and  N93.42bn from Valued Added Tax (VAT).

The federal government received a total of N282.22bn from the N668.90bn. States received a total of N181.17bn and Local governments received N136.49bn. The sum of N53.07bn was shared among the oil-producing states as 13% derivation fund.

Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N240.85bn was disbursed to the FGN consolidated revenue account; N5.10bn shared as share of derivation and ecology; N2.55bn as stabilization fund; N8.57bn for the development of natural resources; and N5.96bn to the Federal Capital Territory (FCT) Abuja.

SOURCE: https://brandspurng.com/ncs-firs-dpr-share-n15-95billion-from-faac-in-june-nbs/

GTI CAPITAL LAGOS – The equity market closed lower today, shedding 2.17% to extend downtrend to six straight sessions. Market breadth closed negative, recording 14 gainers against 25 losers.

In summary, the All Share Index (ASI) was down by 786.19 absolute points, representing a dip of 2.17%, closing at 35,446.47 points. Similarly, the Market Capitalization decreased by N287.03 billion, representing a dip of 2.17%, closing at N12.94 trillion.

The downturn was impacted by losses recorded in medium and large capitalized stocks, amongst which are; STERLNBANK (-8.05%), WAPCO (-6.35%), DANGCEM (-6.14%), ETI (-4.97%), FCMB (-4.02%), FLOURMIL; (-3.53%), DANGSUGAR (-3.13%), WEMABANK (-2.86%), DANGFLOUR (-1.20%), HONEYFLOUR (-0.59%) and FIDELITYBK (-0.55%).

FOREIGN EXCHANGE

The Naira at the inter-bank rate closed unchanged at N306.00, against yesterday’s closing price.

The Investors and Exporters (I&E) FX window opened at N361.75, traded high at N363.50 and eventually closed at N362.00, representing a 0.05% appreciation against yesterday’s closing price. A total of $164.86 million was transacted through the I&E window today.

We expect the FX Market to trade within an existing range in the next session.

MONEY MARKET

Overnight (O/N) rate closed at 9.25%, representing a 0.33% appreciation against yesterday’s closing position, while Open Buy-Back (OBB) rate closed at 8.42% representing a 0.42% appreciation against yesterday’s closing position.

We expect the Money Market to trade within an existing range in the next session.

SOURCE: https://brandspurng.com/dangote-cement-others-drag-equity-market-to-extend-losing-streak-posts-2-17-loss/

The Debt Management Office (DMO) from the presidency has appointed 13 financial institutions to play the role of primary dealers and market makers in respect of the Federal Government of Nigeria’s bonds.


The financial institutions selected comprised of 10 banks. Bonds are securities issued by the Federal or state governments to raise long-term funds from the capital market for developmental projects. This has taken effect from August 1, 2018.

The 10 banks appointed are:

Access Bank Plc
Citibank Nigeria Ltd
Coronation Merchant Bank Ltd
Ecobank Nigeria Ltd
FBNQuest Merchant Bank Ltd
First Bank of Nigeria Ltd
First City Monument Bank Plc
FSDH Merchant Bank Ltd
Guaranty Trust Bank Plc
Stanbic IBTC Bank Plc
Standard Chartered Bank Nigeria Ltd
United Bank for Africa Plc
Zenith Bank Plc.


SOURCE: https://brandspurng.com/13-firms-to-manage-govt-bonds/

First Bank of Nigeria Limited and the National Union of Road Transport Workers have entered into a partnership for the establishment of agent banking services at bus parks across the country.

According to FirstBank, the move will bring banking services closer to operators of commercial vehicles at various parks in the country.

Speaking at the official commencement of the First Bank Agent Banking NURTW Partnership programme at Jabi Park, Abuja, the Deputy Managing Director, First Bank, Gbenga Shobo, said a lot of business activities took place in motor parks.

This, he explained, was one of the reasons why FirstBank decided to bring banking services to the parks, adding that the initiative would enable operators in the parks to save more money.

Shobo, who was represented by the bank’s Regional Head, Shehu Aliyu, said, “Commercial motor parks in Nigeria are a beehive of activities, both economically and socially. So, we are bringing banking services to operators in these commercial bus parks, which will enable drivers to save more money.

“As a result, we are introducing the Driver Savings Account, which comes with a lot of benefits that will, of course, encourage drivers to save and earn more. So, we urge drivers to take advantage of this opportunity.”

Shobo said the bank was pleased to partner with the NURTW and that the agent banking services was being inaugurated simultaneously in six parks across the country.

He added, “We are commencing agent banking business in motor parks in partnership with the NURTW, and this will take place in six locations simultaneously. With this initiative, a commuter or user of any of these parks will be able to open an account instantly at the parks.

“People can now make cash deposits instantly at parks and drivers too can deposit the money they collect from passengers immediately at the parks instead of travelling long distances with it. This initiative will also protect people from the risk of carrying money around.”

He said the bank was starting with about six agent pilot schemes and that the plan was to cover all the motor parks nationwide.

In his address, the President, NURTW, Usman Yasin, said the union had been planning the programme since two years ago, calling on members of the group to key into it.

SOURCE: https://brandspurng.com/first-bank-to-establish-agent-banking-services-at-bus-parks-across-nigeria/

Commercial Paper issuances by corporates have been on the rise so far in 2018 as companies finance expensive debt amidst a much lower interest rate environment. Treasury yields have averaged 12.4% in 2018 vs. 2017 average of 17.9%.

A breakdown of the current Commercial Paper Issuances from the FMDQ OTC Exchange shows that interest in the market has been cut across major sectors, including Financial Services, Consumer Goods, and Industrial Goods. Currently, the discount rate on Commercial Paper (CP) listings as quoted on FMDQ show discount rate range of 12% – 14%, much lower than typical bank overdraft rates and a mild spread on treasury securities.

Dangote Cement PLC currently has the largest outstanding CP value on the FMDQ after raising ₦50 billion out of its ₦150 billion CP shelf programme. Overall, we foresee further interest in the Commercial Paper market going forward, further supported by the  CBN’s recent commitment to invest in Commercial Paper issuances by large corporates at single digit interest rates.

But what is a Commercial Paper (CP)? When and why was the CP introduced?

The Central Bank of Nigeria (CBN) defines it as “an unconditional promise by a person to pay to the order of another person a certain sum at a future date. Such an instrument may or may not carry the bank’s guarantee.”  Where the bank guarantees the CP to make it more marketable in the money market, the instrument is said to have acquired the force of a Banker’s Acceptance and the bank incurs a contingent liability. Where the CP is not secured or guaranteed by the bank (clean CP), it needs not be reported as a contingent liability.

In simple terms, companies borrow money from the public by issuing commercial papers. It is essentially an unconditional promise to pay back your money on an agreed future date with interest. The offer includes all the details of the transaction. You may be wondering why a company would approach the investing public for the loan rather than go to a bank. One advantage is the lower interest rate. Commercial papers are issued within the range of rates obtainable in the money market. That means you get to borrow at a rate cheaper than borrowing from the bank. This makes it cheaper to run their operations. For taking this risk, you also get an attractive return on your money.

CP was introduced in Nigeria in 1962 to finance the export-marketing operations of the then Northern Marketing Board. Under that arrangement, the Marketing Boards met their cash requirements by drawing ninety-day bills of exchange on the Boards. The bills were then discounted with the commercial banks participating in the scheme. The role of the Central Bank of Nigeria (CBN) then was to provide rediscounting facilities for the bills. In 1968, the CBN took over the responsibility from the Marketing Boards.

The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less. They are usually sold, like Treasury bills, at a discount.

Why Do Companies Issue Commercial Papers?

Commercial Paper issuance can serve as a preamble to any future bond offering by the issuer. Balance sheet efficiency creates greater potential funding capacity for the issuer. Issuance of Commercial Paper helps a company complement its other sources of working capital while diversifying its funding sources to include non-bank investors. It also enables companies to acquire investments that are tradable without a penalty.

How do you invest in them

Investment in commercial papers is regulated by the Securities and Exchange Commission. In addition, the quotation of commercial papers on FMDQ Platform (financial market daily quotes) is a rigorous process that involves credit rating etc. This is to protect the investing public and to create confidence in the market. Since commercial papers are listed on FMDQ, you can buy and sell them on the platform.

When you invest in a commercial paper, you purchase at a discount to receive the full value at maturity. For example, when you buy a commercial paper with a face value of N100,000 and an implied interest rate of 10% you actually pay the company N90,000. Upon maturity, the company redeems the commercial paper by paying you N100,000.

Investment in commercial papers is open to accredited investors. An accredited investor is any person or institution capable of understanding and affording the financial risks associated with the acquisition of unregistered securities. This means you understand what you are doing (financial education) and can handle the risk if things do go otherwise.

The accredited investor includes qualified institutional investors or an eligible individual investor.

An eligible individual investor or accredited individual investor is:

 Any person who alone, or with a spouse has a net worth of over N2mAny person who alone had income in excess of N400,000 in each of the two most recent years (or with a spouse, in excess of N500,000 during this period) and had a reasonable expectation of reaching the same income level in the current year (annual income).

The summary is that if you and your spouse earn up to a combined annual income of N500,000, and understand what you are doing, you are an accredited investor.

Subscribing to commercial papers

The minimum level of subscription for an issue may be determined by the issuer and stated in the offer documents.

To invest in commercial paper, all you need to do is to make an enquiry at your bank or discount house. It is as simple as asking your account officer or relationship officer at the bank. They will get the information for you. You will be advised what commercial papers are available, the terms including interest rate, tenor and minimum subscription.

Below is an example of the summary of an offer:

Indicative terms

Issuer: ABC Nigeria PLC

Arranger: XYZ Bank Limited

Issuer rating: ‘A2’(Short term, 2016) and ‘BBB+’(Long term, 2016) by Global Credit Rating Co. Limited

Status of the notes: Senior Unsecured

Programme size: N50bn

Issue size: Up to N5bn

Tenor: 181 days

Discount rate: 19.0194%

Implied yield: 21.2000%

Offer open: 26 Feb 2017

Offer close: 02 Mar 2017

Funding date: 03 Mar 2017

Use of proceeds: Working capital financing

Tax considerations: Free and clear of withholding taxes

Minimum Subscription: N5,000,000 and multiples of N1,000 thereafter.

SOURCE : https://brandspurng.com/what-is-a-commercial-paper-why-do-companies-issue-them-and-how-to-invest-in-them/

The Consumer Protection Council (CPC) and NAFDAC shut down the Victoria Island branch of Krispy Kreme on Wednesday.

The CPC shared the news on their Twitter page, revealing that they, together with NAFDAC, conducted a quality inspection on the products, facilities and operations of the doughnut shop.



Director General of the CPC, Tunde Irukera, was part of the team on the scene. The team discovered that the raw materials used by the confectionery are past their expiry dates. The Joint CPC/NAFDAC operation discontinuing production and sealing key storage of Krispy Kreme Victoria Island location on account of serious regulatory violations with using expired doughnut mix and fillings. Further enforcement activities to follow. Consumer abuse knows no spectrum!



TundeIrukera, DG, CPC, engaged with lawyers of Krispy Kreme during the quality inspection of its facility in Victoria Island, Lagos.

It would be recalled that Krispy Kreme officially opened its first store in Nigeria on March 10th 2018, part of a $7m investment by the company. The new stores will be operated by Quality Foods Africa, which aims to open 20 outlets by 2023.

SOURCE : https://brandspurng.com/cpc-shuts-down-krispy-kreme-in-v-i-lagos-over-use-of-expired-products-photos/

Does Africa’s largest economy need two legislative houses?

The nation’s legislative arm derives its importance from the need to create and modify laws that sustain the social contract of society. It also does an important job in checking the executive arm of government. Yet over the years, the cost of governance has increased across the board and political office holders have experienced a rise in income – even as Nigeria’s economy reeled on the brinks of recession.

With a budget size of ₦125bn in 2017, questions are emerging over the necessity of several core expenditure items. In an era with smaller government, can we actually justify having two legislative houses?

A Bloated Power Centre

In absolute terms, the Nigeria Senate is quite influential. Besides its powers, there is also a case for its membership: there are 21 former governors and deputies in a Senate of 109 members.

Its abilities include bargaining power in passing the appropriation bill into law and confirming the appointment of key members of the executive. Add to this the numerical and equal ethnic representation it offers the country, and the appeal for any aspiring politician or public servant is clear.

Yet with great power comes great responsibility, and many would argue that the many Senators might have forgotten that. In three years, the 8th Senate has gone ahead to set unprecedented landmarks: from the historic budget padding scandal to the alleged forgery of Senate rules by its leadership and most recently the stance of the Senate on the confirmation of key members of the monetary policy committee.

The House of Representatives even has fewer functions compared to the Senate. Yet there are 360 representatives, who some might argue, duplicate the functions of the three elected Senators from each state. While the Senate could be described as a retirement home, the House could be a political nursery. Yet the expertise that could be better served developing states through their state assembly, is often spent in a House with few notable accomplishments.

A Pension House

The pension compensation packages of the many former public office holders in the Senate are extravagant. To be sure SERAP, a socio-economic advocacy group reported in 2017 that several former senators and ministers were receiving salaries and life pensions running into ₦40bn from states that are currently unwilling or unable to pay their workers.

Take, for example, former Akwa Ibom Governor and Senator, Godswill Akpabio, whose state’s law provides for ₦200m annual pay to ex-governors, with perks including pension for life at a rate equivalent to the salary of the incumbent governor and a five-bedroom mansion in Abuja and Akwa Ibom. This cost is in addition to the largely secretive and yet high financial perks of being a Senator.

The financial implication of maintaining a two-house legislature is quite huge. #OpenNASS, a campaign that has called for publishing the budget of the assembly for every Nigerian to see, yielded results with details of its proposed 2017 budget. The allocation for the National Assembly was ₦125bn, a figure bigger than the combined capital budget estimate for the health and education sector.

Despite the huge financial implication of operating a two-house legislature, a report prepared by Nextier, a public policy think-tank in 2013,  revealed that related to other countries, Nigeria legislators are one of the highest paid, yet, this investment does not translate into results (calculated as the number of bills passed into law). For instance, the 6th National Assembly passed only 91 Bills over its four‐year tenure (2007‐2011) while the 112th U.S. Congress (2011‐2012) passed 326 Bills over a two‐year tenure.

Return to 1989?

In 1989, the Babangida administration proposed the creation of a two-house legislature that would operate part-time, the rationale behind the proposal was to reduce the cost of governance in the country then.

A part-time legislative system that takes into account economic realities and legislative productivity as recommended by the 2014 National Conference might be the optimal option for Nigeria. While operating the Senate through a part-time mode could be cost saving, it does come with its set of disadvantages which includes less time for debates and the possibility that legislators may be under pressure to seek alternative sources of income. This means they are vulnerable to the seduction of lobbyists. Yet some will argue that the Senate already operates part-time through its lengthy recess that allows members to be paid 10% of their annual basic salary.

The best reply members of the legislature can give to individuals questioning its contribution is to produce results. As the legislative needs of the country grow, legislators must utilise their experience – which many consider its greatest asset – to redeem its image and drive development. Its biggest mistake might not be its failure to pass more bills into law but its inability to give true representation to Nigerians. And if they can’t do that, we might as well reduce the number of people sharing in the special national cake.

Written by: Tobiloba Fadesere is a Management Consultant based in Lagos Nigeria. He is passionate about developmental issues in Africa and how the continent can be transformed through viable public policy initiatives.


SOURCE: https://brandspurng.com/does-nigeria-need-a-senate/

Nigeria imported 4.79 billion litres of premium motor spirits (PMS), also called Petrol in the second quarter of 2018, according to the latest report by the National Bureau of Statistics (NBS).

A further breakdown of the petroleum products importation revealed that 1.11 bln litres of automotive gas oil (AGO), 43.79 mln litres of household kerosene (HHK). The report said 200.39 mln litres of aviation turbine kerosene (ATK) were imported into the country in Q2 2018.

It indicated that the months of April 2018 recorded the highest volumes of premium motor spirits (PMS) imported into the country at 1.78 bln litres while the highest volume of automotive gas oil (AGO) and household kerosene (HHK) were imported in June 2018.

The report showed that statewide distribution of truck-out volume for Q2 2018 showed that 4.89bn of premium motor spirits (PMS), 1.17 bln litres of automotive gas oil (AGO), 168.83 mln litres of household kerosene (HHK) and 176.98 mln litres of aviation turbine kerosene (ATK) were distributed nationwide during the period under review.

Download the Q2 2018 Petroleum Products Importation Statistics Q2 2018 Report here…

SOURCE: https://brandspurng.com/nigeria-imported-4-79-billion-liters-of-petrol-in-q2-2018-nbs/

H1’18 Revenue down 22% y/y amidst notable weakness in Animal FeedsMixed trend in operating costs drives EBIT margin 91bps lower y/yLower finance expenses offset weaker operating profit, PAT up 14% y/yEarnings estimate little changed, HOLD rating reiterated

Animal Feeds rout persists, small segments record mild recovery

UACN released its H1’18 financial statements showing a 22% y/y decline in revenue to ₦37 billion, marginally behind our ₦38 billion estimates. Whilst there has been a notable improvement in topline performance of the Paints (+17% y/y), Logistics (+19% y/y) businesses and Packaged Foods (+18% y/y), the major drag to headline revenue remains Animal Feeds, UACN’s largest business segment – down 38% y/y. Amidst the impact of unfavorable market dynamics on both volumes and prices in the segment (see Animal Feeds sector update in H1’18 Outlook Report ‘In the shadow of the polls’), UACN has also reported disruptions from the pastoral disputes in Plateau State. Meanwhile, the dismal performance of the Real Estate (-46% y/y) business remained driven by lower rental revenue and housing sales.

Net finance expense moderation supports earnings growth in H1’18

While Cost of Goods sold declined at a faster pace than topline (-26% y/y vs. our -23% y/y expectation), operating expenses advanced 11% y/y, with OPEX to sales ratio rising 450bps y/y to 15.3% (Vetiva: 14.7%). As such, H1’18 EBIT declined 30% y/y to ₦2.7 billion, albeit in line with Vetiva estimate. The bottom line for the period was however strongly supported by a 57% y/y reduction in net finance expenses, a benefit from the company’s capital restructuring in Q1’18. Supported by this, H1’18 profit before tax rose 15% y/y – in line with our expectation at ₦2.1 billion. However, following a much lower than the expected tax rate of 22% recorded in Q2’18 (Vetiva: 29%, Q1’18: 27%), profit after tax came in 7% ahead of our estimate.

Mild earnings forecast upgrade, HOLD rating maintained

According to UACN’s H1’18 results press release, Management has begun to take decisive steps to reposition its businesses following its strategic review, and the company believes the improvement recorded across a number of subsidiaries in Q2’18 can be partly attributed to these moves. We look forward to an upcoming session with the Management (7th August 2018 Conference Call) to gain further insight into expected plans for its subsidiaries, particularly on moves surrounding the loss-making Animal Feeds and Real Estate businesses.

Given that major line item printed in line with our estimates, we make only modest adjustments to FY’18 forecasts. Particularly, after adjusting our cost estimates, our FY’18 EBIT margin is unchanged at 7.4%, albeit our EBIT estimate is little changed at ₦6.0 billion (Previous: ₦6.2 billion) following a marginal downward revision to our revenue estimate. Meanwhile, with UACN’s cash flow further strengthening in Q2’18, following inflow of proceeds from Grand Cereals’ Rights issue, we maintain our interest expense estimate for FY’18 amidst the reduced need to fund the working capital intensive business with short-term bank loans. Overall, our FY’18 profit after tax forecast is revised to ₦3.5 billion (Previous: ₦3.2 billion), supported by a downward revision in our tax rate estimate to 26% (Previous: 30%). Our 12-Month Target Price is revised marginally upward to ₦20.86 (Previous: ₦20.16), we, however, maintain a HOLD rating in anticipation of any substantial decisions made at the strategic review.

SOURCE: https://brandspurng.com/uac-of-nigeria-plc-animal-feeds-rout-persists-in-q218-as-expected/

This celebratory day is coming this Fri., Aug. 3 — perfect timing for the long weekend.

To celebrate, enjoy a Big Stout for 2 straight hours tomorrow at the extraordinary price of N100 @ 17:59 GMT.

What’s the celebration? It’s International Beer Day! #InternationalBeerDay#Extraordinary #GuinnessNigeria

Offer valid for 2 hours on Friday, August 3, 2018, at select bars. 



Celebrated on the first Friday of every August ever since 2007, International Beer Day is a day that is celebrated all over the world. The purpose of this holiday is for friends to gather together and enjoy some beer together, to celebrate those who brew and serve beer, and to celebrate the beers of all nations. Although this holiday started out as a small local event, over the years it has spread to all six continents.

The big Stout is specially brewed with millions of tiny bubbles to offer an easy to drink beer that delivers on the character and flavour of a true Guinness. It delivers more flavour and character than a lager beer and it is packaged in a stylish returnable bottle with a very attractive embossed label. Its basic raw materials are Maize and Sorghum which are sourced locally within Nigeria.

SOURCE:https://brandspurng.com/international-beer-day-enjoy-a-big-stout-at-the-extraordinary-price-of-n100/

The Tincan Island Command of the Nigeria Customs Service generated a total of One Hundred and Sixty-Two Billion, Seven Hundred and One Million, Seven Hundred and One Thousand, One Hundred and Thirty-Six Naira and Eighty-Three Kobo (N162,701,701,136.83).

This is against the sum of One Hundred and Thirty Billion, Six Million, One Hundred and Thirty-Six Thousand, Nine Hundred and Ninety-Six Naira and Thirty-Six Kobo (N130,006,136, 996.36) generated in the corresponding period of 2017.

This represents a difference of Thirty-Two Billion, Six Hundred and Ninety-Five Million, Five Hundred and Sixty-Four Thousand, One Hundred and Forty Naira and Forty-Seven Kobo (N32,695,564,140.47).

Read: Ogun Customs seizes goods with DPV worth N1.5b in six months

In the statement signed by the command’s Public Relations Officer, Mr Uche Ejesieme, the amount was higher by N32.7bn when compared to the N130bn generated in the corresponding period of 2017.

The Customs Area Controller, Tin Can Island Port, Musa Abdullahi, was quoted as telling some stakeholders that the command had been repositioned to become the most business-friendly port.

He pledged compensation to port users who complied with the Customs’s rules and regulations.

He said, “We are deploying multi-layered approach in addressing the issue of compliance, which is a panacea for trade facilitation, through reward for compliance and ensuring that compliant ‘declarants’ are given expeditious attention in line with the Presidential directive on ease of doing business.”

He disclosed that the command was on the verge of fully automating some of its key positions to ensure seamless operations.

The command, according to him, seized assorted items N138.8m during the period under review.

This was more than the seizure of N88m recorded in the corresponding period of 2017, the CAC noted.

SOURCE: https://brandspurng.com/customs-generate-n162-7bn-at-tin-can-island-in-six-months/

Stanbic IBTC Capital Limited, a member of Stanbic IBTC Holdings PLC (“Stanbic IBTC”), reaffirmed its position as the leading investment banking institution in Nigeria by winning the Best Investment Bank in Nigeria award at the Euromoney Awards for Excellence 2018 held in London recently. Standard Bank, to which the Stanbic IBTC belongs, was also voted Africa’s Best Bank for Wealth Management. The award ceremony had almost 700 leading bankers from around the world, including from Stanbic IBTC and Standard Bank, in attendance.

Chief Executive, Stanbic IBTC Holdings PLC, Mr Yinka Sanni, expressed delight with the recognition. According to Sanni, the award is a demonstration of the growing hunger and capacity of Stanbic IBTC, drawing on Standard Bank’s expertise, to provide game-changing financial and advisory solutions to clients across market segments. “We are delighted to be recognised as the foremost investment bank in Nigeria. The award speaks to our implacable commitment to deliver innovative investment banking solutions to clients across various sectors,” Mr Sanni said.

Mr Sanni added that even though Stanbic IBTC has its roots in wealth management and investment banking hence its market pedigree and leadership in the space, the group has since grown competency across the entire financial solutions value chain as a leading end-to-end financial services provider and intends to sustain the legacy in the foreseeable future.

Euromoney Awards for Excellence announced that the 2018 awards recognised banks in almost 100 countries, in all regions and in 20 global categories. Euromoney noted that “Stanbic IBTC, Nigeria’s best investment bank, closed 38 investment banking deals in 2017, despite macroeconomic conditions that while improving, remain challenging.”

Chief Executive, Stanbic IBTC Capital Limited, Funso Akere, who represented Stanbic IBTC at the award ceremony, thanked Stanbic IBTC clients for the opportunity to advise them on complex M&A transactions, capital raisings and debt financings. He assured them that Stanbic IBTC will continue to deliver innovative and best-in-class solutions.

Stanbic IBTC Capital last month advised Dangote Cement Plc on a N50 billion Series 1 and 2 commercial paper (“CP”) issuance, the largest ever CP issuance by a Nigerian company, which was oversubscribed. Stanbic IBTC Capital also advised on deals in the first half of 2018 for clients including Nigerian Breweries Plc, Flour Mills of Nigeria Plc, UAC of Nigeria Plc, Presco Plc, Nigeria Mortgage Refinance Company Plc, Dufil Prima Foods PLC, Sterling Bank Plc, Novare and Actis.

Stanbic IBTC Capital is a wholly owned subsidiary of Stanbic IBTC Holdings PLC, a member of Standard Bank Group, a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group is the largest African financial institution by assets and market capitalization. It is rooted in Africa with strategic representation in 20 countries on the African continent. Standard Bank has been in operation for 155 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.

SOURCE: https://brandspurng.com/stanbic-ibtc-wins-best-investment-bank-in-nigeria-at-euromoney-awards/

Okitipupa Oil Palm Firm” After six years of disruptive recess, occasioned by the interference of misgovernance, the Okitipupa Oil Palm Company (OOPC) Plc, Ondo State, has finally bounced back into active operation and effective production.

This new lease of life followed the withdrawal of government intervention and control under the Oluwarotimi Akeredolu-led administration, which pledged to give the firm liberty to operate, in order to key into the administration’s employment generation policy.

To demonstrate his commitment to this pledge, Akeredolu assured the Chairman, Board of Directors, Chief Mobolaji Osomo that he would not nominate politicians to represent government on the board, but a technocrat.

The governor followed his words with action and appointed Agric experts and trio of Akinboye Oyewunmi, Kayode Aroloye and Jones into the board. The board also has Oyewunmi as its Vice Chairman.

Aside Osomo, her son, Wale, a lawyer and former Chairman, Ikeja Country Club, Lagos, the three experts representing the state are foremost lawyer and politician, Senator Ndoma Egba and Henry Oladunjoye, National President Oil Palm Growers Association of Nigeria, also brought into the new board, as part of conscious strategy to inject credible pan-Nigerians with proven business and industry experience into the decision making process of the revitalised Okitipupa oil palm firm.

Egba who is also the current Chairman of the board of the Niger Delta Development Commission (NDDC), is representing general public interest on the OOPC board.

To further prove its determination to bring back the glory and fortunes of OOPC, the board also brought the renowned company reviving and financial engineer, Alhaji Lateef Bakare, whose singular effort brought back Trophy Beer to life, as a member of the board. He is representing Easterpot Farms.

The Mimiko administration forcefully took over the management of the firm by sacking the duly constituted board, despite that government has a minority 29 per cent share in the firm, as against Easter pot Farm’s 35 per cent majority and controlling share.

For six years, the firm’s two mills at Okitipupa and Ipoke packed up due to neglect by the quack management team foisted on the company. The team turned the firm into mere palm fruits sellers, harvesting and selling the bunches to local processors in the bush.

All the 10 plantations, with about 1.3 million palm trees, which used to feed the mills were utterly abandoned; no slashing of the bushes, nor pruning of the palm trees.

The lead consultant, Mr. Taiwo Adewole who is driving new efforts to resuscitate and reposition the firm recalled his sordid experience on arrival at the company last April. “I must confess that I am really saddened by the level of decay I saw on the ground here. The level of degeneration of the assets-both physical and biological is so much that we can’t but weep for this company and by the time we started looking at the business documents of the company, as it relates to various management in the past. (Okitipupa Oil Palm Firm) It was clear to me that the company had never had a focused management; they were building for today, rather than building for tomorrow. Everything driving their decisions and motivations was geared towards enriching themselves rather than investing in the company.

“About 90 per cent of the company’s investment and biological asset which is palm fruits did not even get to the company and the company had just been barely surviving on 10 per cent and even that 10 per cent did not get to the bank, it was not properly accounted for. The unbelievable truth is that the company was run for over six years without having even a single bank account. They were not putting any money in the bank, it was that bad.” (Okitipupa Oil Palm Firm)

Adewole, who is of the view that interference by past governments contributed to the failure of the company, is, however, full of praises for Akeredolu. “Though a politician but he has refused to take political decisions on the company, he is guided purely by economic and business well being of the company and the people of the state.

READ MORE: CAN OKITIPUPA OIL PALM AID ONDO ECONOMIC TRANSFORMATION?

“Currently, we are doing massive rehabilitation work on our plantations, because that is where our primary products come from. So, what we have done is to devise a strategy of slashing and stumping the plantations, removing the trees and bushes and several contractors are working across the plantations. (Okitipupa Oil Palm Firm) The exercise is going to cost us over N200 million to execute based on the contract that we are pushing out and that will come from our resources, we are not going to borrow money, we have the capacity to generate those funds. So, we have put that strategy in place.”

“Okitipupa Oil Palm Firm” One other important area where the company has recorded a stunning and tremendous achievement in the last three months is in the area of confidence and trust building among its numerous customers, bankers and host communities. “What we have done is to collectively look at all our creditors, renegotiating with them and establishing a structured credible payment plan for them, surprisingly, there were so many depositors for products that were not given products many years after such deposits were made and that created a credibility problem for the company.”

SOURCE: https://brandspurng.com/okitipupa-oil-palm-firm-bounces-back-begins-production/

Leading digital money transfer service WorldRemit has joined forces with Fidelity Bank, one of Nigeria’s top financial services providers, for instant money transfers to four million Fidelity Bank accounts in Nigeria.

According to the statement, the deal supports WorldRemit’s plan to serve 10 million customers connected to emerging markets by 2020.

It also noted Fidelity Bank’s commitment to digital innovation as well as the provision of convenience for its customers.

Commenting on the partnership, the Regional Director of Africa and the Middle East at WorldRemit, Andrew Stewart said: “Nigeria remains our largest and fastest growing market in Africa, and WorldRemit’s second-biggest market globally.

“We are delighted to be partnering with Fidelity, a leading bank in Nigeria and a major player in the remittance business, to introduce its customers to our best in class online money transfer service, which offers a safer, faster and more cost-effective way to send and receive funds.”

On his part, the Chief Executive Officer of Fidelity Bank, Nnamdi Okonkwo said: “WorldRemit offers a low-cost way to send and receive money. The opportunity for our customers to receive money from over 50 countries in a quick, affordable and convenient manner with WorldRemit is in line with our promise to deliver a new standard of service in the financial services industry.”


SOURCE: https://brandspurng.com/fidelity-bank-worldremit-to-speed-up-instant-money-transfers-to-nigeria/

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ok na, what next?

NB is different

Diamond Bank has released its second quarter unaudited financial report for the period ended June 30, 2018, to the management and stockbrokers of the Nigerian Stock Exchange (NSE), emphasizing its strong focus on the Nigerian market, especially the retail business segment through its digital penetration strategy.
The report showed that the Bank’s digital strategy is paying off as the institution recorded a milestone figure of three million digital customers as well as a significant increase in its mobile platform transaction fees.

Non-interest income of the Bank went up 6.4% to N18.8 billion on higher fees from retail transactions on mobile platform while customers loan volume decreased by 3.6% to N728.7 billion as maturities exceeded new loans during the period but investments in fixed income securities increased 8.0% to N241.7 billion over the same period, according to the report.

Although the Bank’s net interest income reduced year-on-year by 14.4% to N46.2 billion due to lower interest income from loans and investments, and higher interest expense on deposits; impairment charges declined 2.9% to N18.39 billion. The Bank’s profit after tax for the first half of the year stood at N2.2 billion.

Commenting on the result, Chief Executive Officer, Mr. Uzoma Dozie said: “At a macro level the Nigerian economy continued to record improvements because of stable, higher than anticipated oil prices. We have witnessed 15 months of expansion reflected in monthly PMI data, but investor sentiment has remained mixed caused in part by the election season factor. We have capitalized on the positive macro environment to sustain interest income in the short run with positive prospects for growth and have made progress in growing non-interest income.

Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking. Amongst this activity were the Beauty Souk and TechFest events, targeted at entrepreneurs and emerging businesses in the fashion and technology sectors respectively. Our partnership with Lagos Business School’s Enterprise Development Center to support young entrepreneurs continued with the seventh season of the Building Entrepreneurs Today program.

In addition to retail banking, we are investing more resources in our mid-market business banking services to seize the opportunities emerging in that segment. In the second half of 2018, these investments will lead to improved profitability overall.

Despite a tough six months being reported, the outlook for 2018 remains bright for the Bank as we continue to focus on a return to strong profitability and improvement in other KPIs.”

Nigerian Breweries Plc has announced a Profit after Tax of N18 billion for the first half of 2018, according to the unaudited financial results released to The Nigerian Stock Exchange. The N18 billion represents a 22 percent decrease over the N24 billion recorded in the corresponding period in 2017.

An analysis of the filing sent to The Nigerian Stock Exchange indicated that The Company’s revenue dipped by 5 percent from N181 billion in the same period in 2017 to N173 billion in the current period.

A further analysis of the statement shows that results from operating activities declined by 20 percent from N39 billion in 2017 to N32 billion in the corresponding months in 2018, just as Profit before Tax also dropped by 19 percent from N34 billion in 2017 to N28 billion in the period under review.

In the filing statement signed by the Company Secretary/Legal Adviser, Mr. Uaboi Agbebaku, the Company stated that the new excise duty regime and higher rate of beer introduced by the Federal Government in June 2018 further impacted on affordability in the period under review.


SOURCE: https://brandspurng.com/nigerian-breweries-records-n18-billion-profit-for-half-year-2018/