₦airaland Forum

cool

Effrytin LED.

Serious stuff

MTN has announced a collaboration with Africa’s leading independent banking group, Ecobank Transnational Incorporated (ETI), enabling both companies to leverage each other’s assets that will ultimately offer more value to their respective customers across the continent. MTN’s large subscriber base, comprehensive distribution, innovative digital products and drive for mobile financial services are being linked with Ecobank’s trail blazing digital banking products to provide instant bank accounts and remittances through Africa’s largest bank by network.



The two entities, with an extensive footprint on the continent, have signed a Memorandum of Understanding to develop this partnership agreement, which will allow them to innovate and enhance access to affordable financial services via MTN Mobile Money and Ecobank Banking services.

This includes;

Enabling Ecobank and MTN Mobile Money customers to transfer money between mobile money wallets and bank accounts.
Leveraging of Ecobank and MTN’s assets to digitise international remittance, foster product innovation in the field of mobile saving and lending, and offer digital payment solutions to consumers, merchants and corporates.

Ade Ayeyemi, Group CEO of Ecobank said: “The changing landscape of digital banking and mobile telephony is creating unique opportunities in the way and manner customers are served. Africa will need to digitise financial services to rapidly scale up client acquisition and patronage. MTN and Ecobank are taking the big step today at this grand event to support this agenda”

Further he reiterated that “Ecobank’s digital strategy has long been committed to ensuring transaction convenience for the market. We have made giant strides in our mission to ensure financial inclusion and today’s agreement with MTN will greatly accelerate the easy availability of banking services to the previously unbanked.”

Commenting on the collaboration, MTN Group President and CEO, Rob Shuter said: “Partnerships between banks and mobile money operators are fundamental in the mobile money ecosystem, hence our long-standing partnership with Ecobank in many of our markets aimed at driving financial inclusion. We are excited to be taking this partnership to the next level as this latest development will spearhead innovative initiatives which will deepen financial access on the continent.”

(L-R) Charles Kie, Managing Director, Ecobank Nigeria Ltd; Serigne Dioum, MTN’s Executive, Mobile Financial Services; Ade Ayeyemi, Group CEO, Ecobank Transnational Incorporated (ETI), Rob Shuter, group CEO of MTN and Patrick Akinwuntan, Group Executive, Ecobank Transnational Incorporated (ETI), Brand Spur Nigeria.

SOURCE: https://brandspurng.com/ecobank-group-partners-with-mtn-to-deepen-financial-inclusion-across-africa/

Customers of First City Monument Bank Limited (FCMB) who plan to travel abroad for personal or business purposes at very affordable fares now have an opportunity to do so. This is because, the Bank and Etihad Airways have launched a partnership that offers discounted, highly affordable and convenient travel packages, including flight tickets, to existing and potential customers who fly on Etihad Airlines to any part of the world.
The discounted fares come with various benefits from the Bank’s financial products and services stable to enhance the travel experience of customers. These include Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) services, complimentary platinum cards and priority passes, complimentary lounge access at the departure in Lagos, among other benefits. There is also the USA Immigrations clearance at Abu Dhabi for travelers going to the United States and a dedicated service for customers who intend to travel to the Holy land in Mecca for Hajj and Umrah.

To benefit from the package, all an existing customer of FCMB needs do is to Visit www.FCMB.com/premium-travel-offers

Click apply now. Complete the form. Submit.

Don’t have an FCMB account? Open one now by clicking here https://onlineaccount.fcmb.com/start. It takes only 4 minutes and you get your account number instantly.
In a welcome address, the Managing Director, First City Monument Bank (FCMB), Mr. Adam Nuru commended Etihad Airways for the quality of service it offers its customers, noting that the brand within a few years of its establishment, has achieved a very robust international image with a high level of global acceptability within the aviation circles. Mr. Nuru said, “I thank the representatives of Etihad Airways Group. We do not take our partnership with you for granted. We take it seriously knowing that it will surely strengthen our course and increase the range of valuable products we can offer our loyal customers”.

While commenting on the partnership, the General Manager, Africa of Etihad Airways, Mr. George Mawadri, said, ‘’it is a privilege to partner FCMB and we are indeed happy. Etihad is a young airline, though we have grown within the short period of time. We fly directly to 110 destinations and do 140 other destinations in our partnerships with other airlines. We have acquired 60 new airplanes-Airbuses and Boeing 777s. We currently operate 5 weekly flights to Nigeria and very soon, plan to fly daily into the country. The good thing about our partnership with the Bank is that we have similar premium services with FCMB. We really appreciate the relationship and look forward to a long-term and mutually beneficial partnership between the two parties”.

To ensure that a large number of Nigerians benefit from the package, FCMB and Etihad have concluded arrangements to embark on a roadshow across the country. During the road shows, customers stand a chance to win free flight tickets and other exciting gifts.

First City Monument Bank (FCMB) is a member of FCMB Group Plc, which is one of the leading financial service institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group, the Bank has continued to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of the personal and business aspirations of its customers.

SOURCE: https://brandspurng.com/fcmb-partners-etihad-secures-unbeatable-travel-fares-for-its-customers/

In desperate need of surgery to alleviate the ravages of sickle cell disease and previous medical care that worsened his condition, university student Abiodun Bakare was about to give up hope when he discovered the cost of his surgery would be N18 million (about $50,000).

Bakare, his family, and friends had done their research and discovered that a hospital in India could provide him with the care he needed, but the cost of the care and the journey was well beyond his reach.

Digging deeper, Bakare was determined to solve his challenge locally, and finally, his search connected him with a hospital in Nigeria’s northern state of Sokoto where medical experts agreed to perform the operation for a nominal fee.

Bakare’s friends jumped in, launched a social media fundraising campaign, and pulled together the money needed for the operation. However, Bakare still had to overcome one huge hurdle: how to get to the hospital.

The 18-hour overland journey was out of the question due to Bakare’s critical condition. Fortunately, a friend stepped in again and discovered a solution: Flying Doctors Nigeria, which agreed to fly Bakare to the hospital free of charge. The offer reduced a journey that would have taken longer than a day, to just over an hour.

“I knew we had to support Bakare with air ambulance services because it would have been impossible for the student to pull together the funds to pay for the service,” explained Dr. Ola Brown, founder of Flying Doctors Nigeria, West Africa’s first and leading indigenous air ambulance service organization.

The news came as a surprise to Bakare. “I didn’t even know there was an air ambulance service in Nigeria. I thought these services exist only in the Western world. My health condition opened my eyes to the fact that this kind of service is available in Nigeria,” Bakare later said.

He appreciates the support of Flying Doctors Nigeria and understands its value. “This is a journey that the firm could charge over a million naira for. It is still like a dream to me that this kind-hearted firm would intervene in my situation and provide their air ambulance services at no cost to me,” he added.

Dr. Ola Brown says that there are a number of reasons air ambulance services are essential to both the patient in particular and the healthcare community in general.

“The first hours of an emergency situation are critical and the life of individuals shouldn’t depend on how far they live from the medical facility best equipped to handle their injury or illness,” she said. “And we know that the sooner patients receive the proper care, the sooner and better they recover,” she added.

“Further, a firm like Flying Doctors Nigeria helps us solve the logistical problems involved in providing good healthcare in Nigeria, where the roads are often poor and the distances between the patient and healthcare are wide,” she explained. “Ultimately, this allows us to save money by centralizing healthcare services.”

Bakare remains grateful. “I want to say thank you to Flying Doctors Nigeria for their support, and encourage other Nigerians to embrace this means of transporting critically ill patients, because if not for Flying Doctors Nigeria, I could have remained in my serious and painful medical condition.”

Dr. Ola Brown established Flying Doctors Nigeria almost 10 years ago. Since then, the firm has saved lives across the West Africa sub-region, including infants, children, and pregnant women. Corporate organizations, such as those in the construction, mining, oil & gas industries, have also come to depend on the services of Flying Doctors Nigeria.

Born, raised and trained in the UK, Dr. Ola Brown graduated as one of the youngest medical doctors in England. She is also a trainee helicopter pilot.She leads a team of 50 emergency healthcare professionals from the Flying Doctors Nigeria base at Murtala Mohammed Airport Lagos where their aircraft is located.

SOURCE: https://brandspurng.com/flying-doctors-nigeria-steps-up-to-save-sickle-cell-patient/

Foremost Nigerian financial institution Zenith Bank Plc is enhancing the ability of its customers to perform international transactions with the introduction of the Zenith Bank British Pounds and Euro Visa Debit Cards.

The cards are designed to provide customers with more spend flexibility by enabling them to access their Pounds and Euro domiciliary accounts from anywhere in the world. This means that Zenith Bank customers can now spend Pounds Sterling and Euros from their domiciliary accounts in countries where such are legal tender, without having to worry about currency conversions.

The new Zenith Bank Pounds and Euro Visa Debit Cards support ATM withdrawals abroad and POS/Online payments at merchant locations in over 210 Countries.

Customers can obtain a Zenith Bank Pounds or Euro Visa Debit Card at any of the Bank’s branches nationwide. You can also visit www.zenithbank.com/cards for more details.

SOURCE: https://brandspurng.com/zenith-bank-introduces-pounds-sterling-and-euro-visa-debit-cards/

Good signs though

nice

The much-needed investment that will spore activities in the maritime sector that stakeholders have been yearning for is set to materialize as promoters of the Tomaro Industrial Park, which was last year granted Free Trade Zone, has commenced work in the free zone.

The entire project, which is estimated at $450 million (N162 billion) includes a ship fabrication yard, a modular refinery, access slipway, oil storage tank farms, water treatment plant, power generation plant, container lay down/transit, and crude oil distillation unit.

The promoter of the project and Chairman of Integrated Oil and Gas Company Limited, Capt Emmanuel Iheanacho disclosed this in a chat with journalists in Lagos.

 Taking officials of the Nigeria Customs Service (NCS) led by Mr. Darki Hadia Yakubu and journalists around the facility, Iheanacho identified a number of businesses that are being planned at the free trade zone which will add a lot of value to the national economy in terms of industrialization, employment and revenue generation.

Other projects lined up in the free zone, he stated, include a hanger for helicopters to operate from there and a five-star hotel.

Iheanacho said in the next few months, the company will have some particular projects among those lined up to the commission, adding that all hands were on deck to deliver on the mission of the free trade zone.

He said that so far a lot of investors have shown interest in investing in the project. According to him, some Chinese and British investors have shown interest in investing in the free trade zone project.

Iheanacho said what triggered off the attraction of investors was the level of seriousness demonstrated so far and the $800,000 grant received from the United State Government through the United States Trade and Development Agency (USTDA) to support the project.

Specifically, he explained that the grant was to finance the detailed analysis of supporting technologies and engineering for the implementation of the 20,000bpd crude oil refinery.

The free port zone is 75 hectares of land in between the Snake Island and the Lagos Deep Offshore Logistics Base (LADOL) which are also enjoying free trade zone status.

Iheanacho explained that the plan for the shipyard is to start with ships of smaller sizes and later develop into a capacity to build bigger vessels.

Already, there is an ongoing construction work at the site which is for the oil storage tank farms.

President Muhammadu Buhari had last year officially announced Tomaro Industrial Park as part of the efforts to ensure the industrialization of the nation’s economy.

The Managing Director of the Nigerian Export Processing Zones Authority (NEPZA), Mr. Emmanuel Jime while announcing the President’s approval said it was the way forward, adding that the structure of FTZ was a model for development.

He said that there were a number of incentives to have businesses sited in the Free Trade Zone.
According to him, “We want to make Nigeria an attractive and preferred destination for business. And the mandate of NEPZA is to create an enabling environment for businesses so that they can find Nigeria a sure destination.”

SOURCE: https://brandspurng.com/investor-stakes-450-million-on-new-free-trade-zone-to-build-ships-in-nigeria/

In spite of some hardships, Nigeria was still named by Transsion Holdings / Tecno Mobile as their biggest market in Africa. This was revealed by the Vice President of Transsion Holdings, Mr. Andy Yan at Tecno’s Global Spring Launch in Lagos.

According to reporters, Tecno unveiled Camon X Pro smartphone at the event held at the Eko Eko Hotel and Suites, Lagos. Tecno’s VP said that Nigeria had provided a huge market for the organization in spite of the challenges of fluctuating foreign exchange.

Furthermore, he added that the company had contributed to the growth of Nigeria’s economy through job creation. He noted that Tecno has also impacted on Nigeria through its corporate social responsibility. He called for consistent policies to encourage investment in Nigeria, saying that unstable business environment discouraged investment.

“Investors, most importantly, must have a stable environment and policies to do business. Where there is no continuity as regards policies and business relationship, businesses will be affected. We are trying to keep very healthy relations, discussing the possibilities and opportunities to impact on the society,” Yan said.

“This has kept the company going in spite of challenges. At Transsions, we do not adopt a one-size-fits-all approach in developing our products,” he said.

SOURCE: https://brandspurng.com/tecno-says-nigeria-biggest-market-in-africa-despite-challenges/

FY’17 Revenue rises 30% y/y despite weak showing in Q4Earnings leapfrog on stronger operating marginsStronger balance sheet position, margins to support FY’18 PAT

Record earnings for UNILEVER in FY’17 despite weaker Q4 sales

UNILEVER released its FY’17 results, reporting record revenue (₦91 billion) and PAT (₦7.5 billion) for the year. Despite a strong 30% y/y Revenue growth, we highlight that the top line came in below our ₦96 billion estimates following an underwhelming sales performance in the fourth quarter. Notably, Q4’17 revenue contracted 10% q/q (Vetiva: +11% q/q) with the quarter reporting the weakest contribution to FY Revenue at 24% (5-year average: 26%). We have observed relatively weaker Q4 performances across most industry players – a trend we attribute to price reduction within the period, necessitated by intensifying competition across the food and HPC (Home & Personal Care) categories even as consumer demand remains weak. For the segmental performance, the Food and HPC segments reported 18% y/y and 44% y/y revenue growth respectively in FY’17 – with the latter now accounting for 53% of the top line, the highest contribution since 2013. Bucking the trend observed across other industry players however, UNILEVER’s Operating Profit margin strengthened significantly in Q4’17 – up c.600bps q/q to 17% (Vetiva: 13%) – with the company’s cost containment efforts supplemented by a ₦1.1 billion income from reversal of excess accruals for goods and services received in previous years. Consequently, FY’17 Operating Profit came in 3% higher than we had expected at ₦13 billion, a significant improvement from ₦6 billion in FY’16. Earnings were further supported by moderation in Interest Expense in Q4 as UNILEVER successfully paid off its outstanding short-term liabilities following capital raised through its Rights Issue. Overall, FY’17 Profit after tax came in at ₦7.5 billion (FY’16: ₦3.1 billion) – 10% better than our estimate. The Board of Directors declared a dividend of ₦0.50/share (FY’16: ₦0.10, Vetiva: ₦0.30).


Stronger balance sheet, stable margins to support earnings

We maintain our expectation of more intense competition across the Consumer Goods space in 2018. Also, we expect abating cost pressures to provide a leeway for further price cutting as the companies look to support volume growth within the year. Noting the trend observed in Q4’17, however, we are more cautious on revenue growth in FY’18 even as consumer spending remains weak. As such, we revise our FY’18 revenue growth estimate lower to 10% y/y (Previous: 15%). Notwithstanding, we believe UNILEVER is poised to deliver strong earnings in FY’18 noting recent deleveraging as well as sustained margin improvement. Despite our positive outlook on inflation and UNILEVER’s proven ability to keep costs well contained, we expect FY’18 operating profit margin to moderate to 13% (FY’17: 14%, Previous: 12.5%) amidst expected reduction in average prices. Overall, we forecast FY’18 Profit after tax of ₦9.5 billion (Previous: ₦9.1 billion) – translating to a 27% y/y growth. Further supported by our lower risk-free rate assumption (following moderating interest rate environment) and a stronger cash position, our 12-Month Target Price is revised to ₦33.72 (Previous: ₦23.60) and maintain a SELL rating. UNILEVER trades at a premium to its peers, on a current (42.2x, Peers: 29.5x) P/E basis.

SOURCE: https://brandspurng.com/unilever-nigeria-plc-well-fitted-for-tough-market-dynamics-in-fy18/

In 2017, Nestlé launched more than 1000 new, nutritious products and contributed to over 41,000 job and traineeship opportunities through its Nestlé Needs YOUth initiative. Furthermore, the company has reduced its greenhouse gas emissions by over 30% in the last 10 years. The 2017 Nestlé in society – Creating Shared Value report (pdf, 15Mb) details the company’s progress on key commitments.

The report covers the company’s impact on individuals and families, communities and the planet, supporting the 17 UN Sustainable Development Goals. It highlights some of the ways Nestlé employees worldwide are working to fulfill the company’s purpose of enhancing the quality of life and contributing to a healthier future.

Guided by values rooted in respect, Nestlé promotes transparency and accountability in its business and its interactions with communities where it operates. The Nestlé in society report is independently verified by Bureau Veritas. Nestlé is proud to be reporting at the highest level within the Global Reporting Initiative Standards reporting guidelines.

SOURCE: https://brandspurng.com/creating-shared-value-nestle-launched-over-1000-products-in-2017/

There are indications that most WPP staff were stunned by the news that Sir Martin Sorrell is facing an investigation into his personal conduct and use of company assets.


But at least one senior executive heard something was brewing before rumors began to fly internally over the Easter weekend, when journalists from The Wall Street Journal, which broke the story on Tuesday, contacted agency leaders.

One senior figure inside WPP says: “It’s serious – for it to have come this far and the board not to have resolved it.”

Another source claims Sorrell can sometimes be “rude and too forthright” but adds that they have always found him to be “straight as a die” when it comes to financial matters.

Sorrell has been under pressure in the last 12 months as WPP’s revenue growth has gone into reverse and the share price has tumbled by a third as clients demand greater transparency and do more of their digital marketing in-house.

Few details have emerged so far about WPP’s independent investigation.

WPP, whose board is led by chairman Roberto Quarta, issued a short, neutral statement, saying it has “appointed an independent counsel to conduct an investigation in response to an allegation of personal misconduct against Sir Martin.”

It added: “The allegations do not involve amounts which are material to WPP.”

Sorrell has issued a statement saying he rejects the allegation of financial impropriety “unreservedly” while recognizing the board needs to investigate.

If there has been an issue over his financial arrangements, it has been his willingness in the past to accept some significant expenses such as £274,000 for “spousal” travel – as he did in 2014.

That seemed unnecessary for a chief executive who was regularly earning over £40m a year in the good years between 2014 and 2016, including £70m in 2015, when his long-term share awards were paying out.

The big questions are: What will the investigation uncover? And will Quarta and other directors on the board support Sorrell?

The investigation will move as swiftly as possible but there is no timescale. Three law firms, including Allen & Overy and Slaughter & May, are said to be involved.

There is speculation in the City about the tension between Sorrell and the board.

Quarta, an Italian who was dubbed “Give no Quarta” and “Bob the Knife” during his days in the industry before joining WPP, is tough.

However, insiders say they haven’t witnessed that toughness so far during his three years as chairman.

Quarta was supportive of Sorrell at last year’s annual general meeting when there was relatively little opposition to the chief executive’s pay because the group has adopted a less generous long-term bonus scheme.

“I don’t think pay is going to keep Martin here at WPP,” Quarta told the AGM, noting that Sorrell had built WPP from “nothing” and he has been “fully committed” to the world’s biggest advertising and marketing group for more than 30 years.

And that commitment “hopefully will keep him here for many, many more years”, Quarta added.

However, the investigation has raised fresh questions about the Sorrell succession. Sorrell, who is 73, has a reputation for being a brilliant, hands-on operator.

He has successfully built and run WPP as chief executive for 32 years and knows the importance of financial and legal regulations. He is driven, loves winning new business and is adept at wooing clients.

However, even allies admit he can be short-tempered and combative when he is unhappy or under pressure.

WPP has said it has an internal pool of senior executives and a “constantly refined list of external candidates” but there is no obvious choice.

When things were going well and WPP doubled its share price between 2012 and 2017, Sorrell could brush off the critics.

What has changed in the last 12 months is a recognition that WPP urgently needs to restructure itself and has been slow to respond to change. “Media-buying papered over the cracks,” one City analyst says.

Sorrell has ordered a string of internal agency mergers in the last year but some think WPP still looks unwieldy.

WPP’s share price slipped 2% on the news of the investigation. That suggests investors aren’t overly worried – even if it hastens Sir Martin’s exit.

Sorrell will be hoping to ride out the storm. He has always said he will stay as long as shareholders want him until he is carted off “to the glue factory”.

At this difficult time, Sir Martin, a keen student of history, will be thinking more than ever about his legacy.

SOURCE: https://brandspurng.com/global-advertising-kingpin-sorrell-under-fire-wpp-investigates-ceo/

Ok

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World Health Day is observed on the 7th of April annually which also coincides with the anniversary of the World Health Organization. The World Health Organization (WHO) is an agency of the United Nations that focuses on the public health of the world at large. The day focuses on increasing life expectancy by promoting healthier living habits as well as highlighting current global health priorities across the world. The main theme for 2018 is “Universal health coverage: everyone, everywhere” #HealthForAll – ensuring that everyone, everywhere can access essential quality health services without facing financial hardship. Making and sustaining progress towards Universal health coverage (UHC) requires strong and sustained political commitment, therefore, WHO is calling on world leaders to live up to the pledges they made when they agreed on the Sustainable Development Goals (SDG) in 2015 and to commit to concrete actions to advance #HealthForAll. 

In commemoration of the 2018 World Health Day, NOIPolls reflects on findings from its past poll on Health conducted in August 2017, which gauged the perception of Nigerians regarding their health insurance coverage in the country. The poll revealed that the rate of Out-of-Pocket (OOP) or alternatively, Point-of-Service (POS) payments for healthcare services are alarmingly high in Nigeria, with 82 percent of respondents reporting they pay OOP and another 5 percent revealed that their health services are paid for by friends and family. Given that the payer in the case of the latter may be an individual or organization, it can be assumed that they are out of pocket. Coverage of insurance, either private or social insurance, remains very low at 11 percent, consistent with existing national surveys, and only 2 percent reported receiving free health care. Analysis on age-group showed that more of the young and elderly have someone else who pays for their healthcare than the middle-aged group.

Health insurance coverage rates are highest in the North-Central (17 percent) and the North-East and South-West (13 percent each) zones than elsewhere in the country, compared with the 11 percent overall coverage, making OOP rates higher in the Southern region (84 percent) compared with the North region (78 percent). There are no striking differences between male and female in these measures.

Quality and affordable healthcare is critical to viable development and progress because it is human capital that drives the other factors of production. Health infrastructure (hospitals, laboratories, pharmaceuticals, health insurance organizations and other ancillaries) are essential for an efficient functioning healthcare system and consequently, a productive and prosperous nation. Despite some positive strides recorded in the Nigerian health sector over the years especially the (NHIS) act of 1999 which still remains the only reliable health insurance scheme in the country for majority of citizens, public health care sector is still bedeviled with a myriad of challenges that caused by decades lack of planning and policy interruptions.

A clearer picture on the state of Nigeria’s health sector is painted in her ranking on the World Health Organization global ranking of health care systems which placed Nigeria 187 out of 191 countries falling far below neighboring African countries such as Ghana, Togo, Niger, Mali, Chad who ranked better with 135, 152, 170, 163 and 178 respectively. This implies that the country’s health care system is only better than that of four countries, Democratic Republic of the Congo, Central African Republic, Myanmar and Sierra-Leone. Going by the above, Nigeria has a lot of work to do in improving its health systems and making healthcare affordable and accessible to the millions of Nigerians who are not getting the health services they require. Additionally, according to Nigeria Health Watch, an online health magazine which focuses on all aspects of health care services, management and delivery in Nigeria, the Government has to take a three-pronged approach to ensure it achieves universal healthcare for every one; implement the bill signed in 2014 to fund the Basic Health Care Provision Fund (BHCPF) with 15 of the Consolidated Revenue Fund, enforce regulation that makes health insurance provision compulsory for all corporate organizations and ensure accountability and transparency from the Health Management Organizations (HMOs).

Summarily, the survey proves that there is urgent need for interventions in the Nigerian health system to reduce the incidence of out-of-pocket health expenditure. The proportion of the population covered by financial risk protection in healthcare utilization is too low at 11 percent, compared to a benchmark of 90 percent for an efficient health system, and this is a reflection of how far the country lags in the race towards universal health care coverage. High out-of-pocket (OOP) rates are associated with low uptake of preventive health services, weak management of health care and causes situation where patients wait till they are too sick or the situation becomes an emergency before they seek for healthcare services. The poor segment of the population would likely not seek healthcare due to their inability to pay, and this further weakens the performance of the health system in terms of its ability to protect the weak. 

In conclusion, the survey found that 82 percent of respondents make Out-Of-pocket Expenditure (OOE) for healthcare and is consistent with the current National Health Account for Nigeria, which found that OOE is 70 percent. Too many Nigerians suffer financial hardships when they make catastrophic health expenditures. Evidence shows that some healthcare expenditures can push people further into poverty. A way to reverse this high OOE is for government at all levels in Nigeria to demonstrate the required political will for Universal Health Coverage. A quick way of achieving this is to increase health insurance coverage. It is gratifying that at least 10 Nigerian States have signed health insurance laws to help in achieving equitable and sustainable health financing mechanism. Functional State health insurance schemes will help increase the pool of individuals with health insurance thereby driving down premiums.

Important steps needed to be taken include but not limited to urgent expansion of social health insurance across the country to guarantee financial risk protection to the population and reduce the incidence of out-of-pocket payments by households. The National Health Insurance Scheme (NHIS) needs to support the states to establish their State health insurance schemes and contribute to funding the coverage of the vulnerable population groups namely – young children under age 5, pregnant women not covered by formal health schemes, the elderly population and the economically indigent population.

SOURCE:https://brandspurng.com/most-nigerians-still-pay-out-of-pocket-for-healthcare-services-noipolls/

Gross Earnings up 20% y/y – 9% ahead of our estimateHigher 9mobile provisioning caps bottom line growthStrong balance sheet growth to drive earnings going forwardTarget price revised marginally higher to N14.21 (Previous: N13.74)

Strong y/y performance despite higher provisioning

UBA released its FY’17 results, posting impressive top and bottom line performances – driven by strong balance sheet growth. With Interest and Non-Interest Income coming in 23% and 13% higher y/y (4% and 6% better than our estimates) respectively, Gross Earnings rose 20% y/y to ₦462 billion vs. our ₦424 billion estimates. Notably, despite the relatively lower interest rate environment in the last quarter of the year, we highlight that top line was buoyed by a 3% q/q loan growth in Q4’17 as well as a strong 42% q/q rise in Non-Interest Income. On a quarterly basis, the top line beat earlier run rate with Q4’17 accounting for c.28% of annual Gross Earnings. Although Interest Expense rose 19% y/y (tier 1 average y/y rise: 38%), the expense line came in lower than we had estimated – having stayed flat q/q in the last quarter of the year despite an 8% q/q rise in Customer Deposits. However, in line with the trend we have observed across the industry, UBA reported significantly higher loan loss provision of ₦20 billion in Q4’17 (Q3’17: ₦3.5 billion) – bringing FY’17 provisioning to ₦32.9 billion and translating to a cost of risk of 2.1%. We understand that the bank has made a c.38% provision on its ₦40 billion exposure to the telecoms giant – 9mobile. Despite this, Operating
Income rose 21% y/y to ₦294 billion – marginally higher than our ₦291 billion estimates. However, with Operating Expense moderating 16% q/q in the Q4 period, the expense line came in at ₦188.6 billion – slightly better than our ₦191.3 billion estimates. Consequently, PBT rose 16% y/y to ₦105 billion – 5% better than our ₦100 billion estimates. However, with effective tax rate coming in at 25% (higher than our estimate and prior year’s 20%), PAT came in ₦78.6 billion – marginally below our estimate of ₦79.8 billion. Overall, the Board of Directors declared a final dividend of ₦0.65 per share (interim: ₦0.20), translating to a dividend payout ratio of 37% and a dividend yield of 7%.

TP revised to N14.21 (Previous: N13.74)

We highlight that earnings came largely in line with our estimates. As such, we maintain our forecasts across most line items. Although we forecast an above average loan growth of 10% for UBA in 2018, we expect moderating interest rate to cap its impact on Interest Income and estimate a mild 2% y/y growth in FY’18. Also, despite our decent deposit growth forecast for FY’18, our Interest Expense growth forecast is contained at 4% y/y. Amidst this, we estimate a 20bps improvement in margin. With asset quality deteriorating faster than expected in FY’17, we are cautious going into FY’18 and forecast a loan loss provision of ₦26.3 billion – translating to a 1.5% cost of risk. Also, we estimate an 8% y/y rise in Operating Expense (₦203 billion), keeping efficiency stable with a Cost to Income ratio of 58%. Overall, we forecast a PAT of ₦90.4 billion for FY’18 – translating to an EPS of ₦2.64 and a RoE of 16.7%. With our dividend payout ratio estimate of 34%, we forecast a dividend per share of ₦0.90 for FY’18. UBA continues to trade at a discount to peers – priced at an FY’18 P/E and P/B of 4.4x and 0.7x vs. tier I averages of 5.8x and 1.0x respectively.

SOURCE: https://brandspurng.com/uba-plc-fy17-persistent-earnings-track-estimates-pat-up-9-y-y/

There are strong indications that Konga, the e-commerce recently acquired by Zinox Group, will merge with Yudala this month.

Our correspondent gathered from reliable sources in the company that the move was part of the ongoing restructuring of the company aimed at building a strong brand and attaining market leadership in the e-commerce industry.

However, industry watchers observed that the merger between Konga and Yudala was a potential game-changer for e-commerce in the country.

According to them, combined strengths of Konga and Yudala will improve consumer experience by lending more convenience to the shopping process and expand access to a wider range of products, services, and solutions for Nigerians.

Konga, founded in 2012 by Sim Shagaya, dominated the news recently following its acquisition by the Zinox Group, after months of intense negotiation with major investors, Naspers and AB Kinnevik.

As part of the restructuring in the company, a new management was announced recently with the appointment of Olusiji Ijogun, a seasoned and experienced technocrat as chairman and the former Vice President of Nokia, Nick Imudia, as the chief executive officer.

Yudala, which was launched about two years ago, offers a retail roll-out strategy and a network of physical stores, which has helped the company reach many unserved and underserved Nigerians.

Commenting on a possible merger between Konga and Yudala, the Lead Partner, Infusion Lawyers, Senator Ihenyen, said he was not surprised at the move, saying the merger would have many benefits for both brands.

According to him, Yudala will benefit from Konga’s massive online subscribers to market its products while Konga will leverage Yudala’s physical stores to deliver a unique shopping experience to Nigerians.

He said, “Over the years, Konga has successfully created a strong brand for itself in the e-commerce space in Nigeria. With this strong brand, Konga is in a great position to leverage Yudala’s fairly distributed physical stores in Nigeria. On Yudala’s part, by merging with Konga, it’s an opportunity to also leverage Konga’s 100-thousand-strong online subscribers, giving Konga subscribers the ‘real’ shopping experience. So, I think the merger will be a win-win for both Konga and Yudala. Of course, I expect Konga to absorb the Yudala brand.”

Ihenyen posited that the impact of the merger on the Nigeria’s e-commerce ecosystem would be a significant one, as e-commerce companies such as Amazon and Alibaba had started opening up brick-and-mortar stores for their customers, a trend, which had not been embraced in the country.

He said, “Brick-and-mortar stores are relatively costly to set up, especially in a market like Nigeria where there is no even distribution of urban life. But by establishing brick-and-mortar stores, e-commerce companies can add more value by giving their thousands of subscribers the shopping experience that is beyond just receiving stuff at their doorsteps.”

“Millennials now want to have more than just a click. They want to drop by, taking the fun offline. In the next few years, e-commerce stores and offline stores will be the same. Online stores will increasingly become a window-shopping experience, while offline stores will be the experience centres. This is the future.”

SOURCE: https://brandspurng.com/konga-plans-merger-with-yudala/

yea, i agree

If states decide to clear their total debt stock using their entire internally generated revenues (IGR), it may take them more than seven years to achieve that.

Data sourced from the National Bureau of Statistics (NBS) showed that as at the end of 2017, states’ total debt stock stood at N7.33 trillion while total IGR stood at N931.23 billion.

Analysis shows that the entire revenue generated internally by the 36 states in the country in 2017 was 12.69 per cent of their total debt stock as at the end of 2017.

All things being equal, states will require about eight years to settle the debts using about N916 billion yearly from their IGR.

However, given that only few states can survive with only their IGR, allocations from the Federal Government can only reduce the debt payment duration to three years assuming the states want to spend all their IGR and FACC allocations to off-set their loans.

In 2017, the 36 states of the federation got N1.74 trillion from the federation account and this, in addition to their IGR, brought their total revenue to N2.67 trillion, which only amounted to 36 per cent of their total debt stock as at the end of the year under review.

The states’ total debt stock of N7.33 trillion at the end of the year was N4.66 trillion higher than their total revenues in the same year.

Analysis showed that all things been equal, states would require three years to clear their total debt stock using all revenues from IGR and FACC allocations.

The total debt stock comprised of external debts and domestic debts while the total revenue included revenues from net FACC allocations, and Internally Generated Revenue (IGR).

A breakdown of the N7.33 trillion debt stock of the states indicated that their external debts amounted to N1.47 trillion (N4.08 trillion) while domestic debts stood at N3.25 trillion at the end of 2017.

A breakdown of the N2.67 trillion total revenue of the states in 2017 showed that they got N1.74 trillion from FACC allocations and generated N931.23 billion internally.

SOURCE: https://brandspurng.com/states-igr-cant-clear-n7-33trn-debt-in-7-years/

Good One

Ok

Nestlé, the Swiss transnational food, and drink company have unveiled Milkybar Wowsomes, the first chocolate using Nestlé’s new structured sugar to reduce the sugar by 30% versus comparable bars.

According to the company, this new Milkybar Wowsomes achieves the sugar reduction using only natural ingredients and with no sweeteners, with milk as the No. 1 ingredient, containing crispy oat cereal.

The sugar reduction comes thanks to a scientific breakthrough that Nestlé first announced in 2016.

Researchers at Nestlé changed the structure of sugar using only natural ingredients. They created an aerated, porous sugar that dissolves more quickly in the mouth. This allows someone to perceive the same sweetness as before while consuming less sugar.

Nestlé is committed to further advancing the nutritional credentials and wholesomeness of its children’s confectionery.

It, therefore, plans to apply the sugar technology to further children’s chocolate brands.

The goal is to reduce sugar content naturally while maintaining great taste.

The innovation is in line with Nestlé’s purpose of enhancing the quality of life and contributing to a healthier future.

Nestlé started its sugar reduction journey in 2000 when it made a first public commitment to reduce sugars in a range of products by 10% between 2014 and 2016.

It has pledged to further reduce the sugars in its products by a further 5% on average as part of a range of 2020 commitments.

Nestlé teams in Switzerland, the United Kingdom, and the Czech Republic took just over a year to turn the structured sugar innovation into a new product.

Launched in the UK in 1936, Milkybar is one of Nestlé’s most iconic chocolate brands, the popular choice for parents in the UK for their children thanks to its mild and creamy taste and high milk content.

With the launch of Milkybar Wowsomes, the brand is offering a new alternative with 30% less sugar.

Milkybar Wowsomes will appear in stores in the United Kingdom and Ireland in the coming weeks, meeting the growing demand of parents for better treats.

SOURCE: https://brandspurng.com/nestles-unveils-the-worlds-first-chocolate-with-innovation-to-reduce-sugar-by-30/

In a renewed bid to ensuring that electricity customers only pay for what they actually consume, the Nigerian Electricity Regulatory Commission (NERC) has approved a regulation that provides for the supply, installation, and maintenance of end-user meters by other parties approved by the Commission. The regulation is expected to fast-track a closure of the metering gap and encourages the development of independent and competitive meter services in the electricity industry.

The Meter Asset Provider (MAP) Regulation (Regulation No. NERC/R/112), which would become effective on April 3, 2018, introduces meter asset providers as a new set of service providers in Nigeria Electricity Supply Industry. As assets with a technically useful life of 10-15 years, the regulation provides for the third-party financing of meters, under a Permit issued by the Commission, and amortization over a period of 10 years. The electricity distribution companies, in line with their licensing terms and conditions, are obliged to achieve their metering targets as set by the Commission under the new regulation. The contracting of Meter Asset Providers shall be through an open, transparent and competitive bid process thus ensuring that meters are provided at least cost to electricity customers.

It is to be noted that there are no free meters even under the current tariff regime as all customers, including those on estimated billing, currently pay for a return on the investment made by electricity distribution companies on meters in their networks. Under the new MAP regulation, customer classes shall be amended to ensure that customers only pay for meters when a meter is physically installed on their premises. The electricity bill of customers provided with a meter under the new regulatory framework shall comprise of two (2) parts – energy charge and metering service charge. The payment of metering service charge will be removed from the customer electricity bill upon the full amortization of the meter asset over its useful life. All faulty meters are expected to be repaired or replaced free of charge within two working days, except in instances where it is established that the customer is responsible for the damaged meter.

In pursuit of promoting local content, the new MAP regulation mandates the investors to acquire a minimum of 30 percent of their metering volume from indigenous meter manufacturers. This local content threshold may be adjusted by the Commission from time to time in line with the verified manufacturing volume of local manufacturers.

The eleven (11) electricity distribution companies are expected to, within 120 days from the effective date of the regulation; engage the services of MAPs towards the achievement of their 3-year metering targets prescribed by the Commission.

The performance of Meter Service Providers shall be governed by the provisions of the Meter Asset Regulation, technical codes of the electricity industry, and a Meter Services Agreement/Service Level Agreement signed with the distribution companies.

SOURCE: https://brandspurng.com/nerc-licenses-87-firms-as-meter-asset-providers/

Göod

Financial institution, United Bank for Africa (UBA) Plc, has announced the promotion and elevation of about 2000 of its workforce, representing about 17 percent of total staff strength across the group.

This is in recognition of the remarkable contribution the staff members have made to the bank’s business growth as highlighted by the impressive performance recorded in its recently released 2017 financial year-end results.

The announcement, which came on Monday, is especially heartening in the face of the numerous economic challenges faced by major financial institutions on the continent, most of whom are yet to recover from the impact of the recessive business climate that rocked many companies in 2016 and a greater part of last year.

It is important to note that about a year ago, the bank had promoted 3,000 staff members, 25 percent of its workforce, while also doling out cash rewards to deserving staff for exemplary conduct and performance that year.

This year’s promotion, as with others, has been commended by human resources analysts who have noted that UBA, which was mentioned in a recent survey as one of the “Best 100 Companies To Work For in Nigeria” has become synonymous with rewarding excellence. The announcement has also been greeted with joy and enthusiasm by the workforce of the bank.

The affected staff that cut across all units, divisions and 19 countries where UBAoperates were selected after the completion of appraisal system that identified high performers in the bank among other criteria.

The Bank’s Group Managing Director/CEO, Kennedy Uzoka, in an email to staff of the bank described the promotion as ‘dividends of hard work, adding that with the recent proclamation of UBA as the African Bank of 2017 by the Banker Magazine; as well as the ranking as Best of Bank of the Year in Cameroon, Congo Brazzaville, Senegal and Tchad, it is only right to recognise, reward and celebrate the performance of the staff who have worked tirelessly to achieve this.

Mr Uzoka charged staff to continue to embody the bank’s core values in their endless quest of delivering excellent services to both internal and external customers of the Bank.

He said, “I congratulate all for their well-deserved elevation. I also wish to especially thank those colleagues who have not made it on this year’s list. I implore you to keep up your contribution, as your efforts are recognised. There are several other ways that we will continue to reward and recognise your contributions and we intend to use all opportunities to demonstrate this.”

United Bank for Africa Plc is a leading financial services group in sub-Saharan Africa, with presence in 19 African countries, as well as the United Kingdom, the United States of America and France.

From a single country operation founded in 1949 in Nigeria, Africa’s largest economy, UBA has emerged as a pan-African provider of banking and other financial services, to 10 million customers globally, through one of the most diverse service channels in sub-Sahara Africa; 632 business offices, 1,750 ATMs, some 13,500 PoS, and a robust online and mobile banking platform.

UBA was the first Nigerian bank to make an Initial Public Offering (IPO), following its listing on the NSE in1970. It was also the first Nigerian bank to issue Global Depository Receipts (GDRs). The shares of UBA are publicly traded on the Nigerian Stock Exchange (NSE) and the bank has a well-diversified shareholder base, including foreign and local institutional investors as well as individual shareholders.

SOURCE: https://brandspurng.com/uba-reward-loyal-staff-promotes-2000/

As part of its effort to encourage the utilisation of renewable energy in Nigeria and also drive its local presence in the downstream sector of Nigeria’s oil and gas industry, Petrocam Trading Nigeria Limited has opened its fifth solar-powered filling station in Lagos.

Before its current drive to penetrate the local market, the company’s major focus was importing refined petroleum products such as petrol, gasoline, kerosene, naphtha, lubricants and greases for the oil marketing companies in Nigeria.

But in a renewed drive to tap into the local market, the company has opened another solar-powered filling station at Canoe Road, Ajao Estate thus bringing to five the company’s filling stations that are solar-powered in Lagos. Gennex Technologies is the provider of so

The station has five metric tonnes gas skid and four underground tanks with 45,000 litres capacity each, three tanks for PMS and one tank for Automated Gas Oil (AGO).

Speaking with journalists at the official opening of the filling station on Tuesday 27th March 2018, the Admin and Sales Manager, Petrocam Trading Nigeria Limited, Eyo Oghogho said that they keep investing in the solar-powered filling station because solar installations are environment-friendly.

She noted that they are making use of the natural resources which is the sunlight and it is very important common with the tropics where Nigeria is, adding that they are just making use of the available natural resources that the environment has and at the same time doing an environment-friendly installation.

While commenting on what distinguished Petrocam from other filling stations, Oghogho said; “We are special when it comes to aesthetics. Our filling stations are very beautifully planned. The canopies are space out most important because of the effect of the sun. We want to get a good angle to the sun.  Aside from the aesthetics which is the beauty, Petrocam also stands for customer loyalty. We try to give the best to our customers. We do not cheat our customers. W

We also have one stock energy outlet where you can have your petrol, diesel, gas, lubricant and grease. You can always get whatever you need when it comes to petroleum products at Petrocam. Our attendants are well trained in customer service. They don’t ask for extra money from customers or extra charges on keg. We have been able to put our foot down even during the time fuel scarcity we ensure that people are not cheated and the station is not rowdy leading to uproar.

She disclosed that they have decided to spread out to other parts of the country, adding that they have plans to move out to Ibadan, Abeokuta and some other part of the country.

“Presently Petrcoam is in strategic locations, particularly at the exit point. If you are going out of Lagos through Epe you will see us in Ajah and Lekki. If you are going to Abeokuta you will see us in Pleasure bus-stop,’’ she stated.

etrocam Trading (Pty) Ltd prides itself as an entity focused on commodity trading in Africa and “has in the last 10 years developed invaluable and competitive experience in operating in developing countries and has cemented its ability to facilitate trade in emerging and developing markets, relating to African import and export flows of commodities.

SOURCE: https://brandspurng.com/petrocam-boosts-fuel-supply-in-nigeria-opens-another-solar-powered-filling-station/

Good one from NB.

ok na

This is to notify shareholders of Unity Bank Plc and other stakeholders of the Bank that Unity Bank Plc has reviewed the various publications in some media touching the purported investment of $1,000,000,000.00 in Unity Bank Plc by Milost Global Inc. and wish to elaborate as follows.

Pursuant to various Regulators’ advice to the Bank in recent times on the need to shore up its capital base, the Bank with the mandate of its shareholders had engaged in series of discussions and engagement with prospective “value-plus investors”. All through these engagements, the Bank has been properly guided by the extant regulations concerning capital raising and equally made the process open to all prospective investors.

1.  Milost Global Inc. is one of the prospective investors introduced to the Bank by a local entity called Mayo BV. It is not unusual that this introduction and expression of interests would involve some level of preliminary discussions and exchange of non- binding documentary communications between the intending parties towards establishing a mutual foundation on which the transaction contemplated will be initiated. said to have been executed was a “proposal” submitted by Milost Global Inc. “for discussion purposes only and NOT a commitment” by the parties. No definitive documentation governing the proposed financing was executed.

2. It is in relation to the preliminary discussions that courtesy visits were exchanged between representatives of Milost and the Bank in 2017 and early 2018. The Bank’s Managing Director/ CEO was in New York in October 2017 for other engagements and decided to visit Milost and verify the firm’s address as well as put a face to the officers of Milost that have been engaging the Bank via telephone and emails. A brief meeting was held and discussions were around the dynamics of Milost proposal to Unity Bank Plc, and socialization of the policies and regulations around equity investment in Nigeria. The Bank did not at any time suggest or agree to move its listing from the NSE to the USA as falsely reported in the media.

SOURCE: https://brandspurng.com/unity-bank-plc-responds-to-various-publications-on-milost-usd1bn-proposed-investment/