₦airaland Forum

interesting

The United Nations (UN) World Happiness Day is observed on the 20th of March annually. The day aims to recognize the relevance of happiness and well-being as universal goals in the lives of people around the world and the importance of their recognition in public policy objectives. The main theme for 2018 is “Share Happiness – focusing on the importance of relationships, kindness and helping each other”. The day also recognizes the need for a more inclusive, equitable and balanced approach to economic growth that promotes sustainable development, poverty eradication, happiness and the well-being of all people.


In commemoration of the 2018 World Happiness Day, NOIPolls reflects on findings from its past poll on Personal Well-Being conducted in Q4 2017, which highlighted the satisfaction of Nigerians with respect to various aspects of lives as seen in the chart below. Though the Economic, Standard of Living and Achievement in Life indices were the lowest ranked indicators, the Social Interaction Index which is a vital aspect of happiness was ranked highly and experienced an increase of 1.9-point from Q3, 2017 to stand at 79.4-points in Q4, 2017. This corroborates a report released by a United Kingdom-based charity Age UK in 2017, which revealed that staying social is one of the key ways of staying happy. Social activities such as going to the cinema, joining a sports club, or getting involved in a volunteer group are some of the most effective ways of boosting feelings of happiness and well-being, as well as overall health.

In line with the Day, the World Happiness Report released by the Sustainable Development Solutions Network for the United Nations on March 14th, 2018, ranked Nigeria the 91st happiest nation in the world and 5th in Africa. As revealed by the report, Nigerians seem to be happier now, as the country moved up from her previous position of 95th at the global level and 6th in African in 2017.  Nigeria’s position in the World Happiness Report has shown that despite the economic and security challenges being faced in the country, her citizens strive to remain happy. This substantiates the Q4, 2017 Personal Well-Being Index which revealed a high ranking in social interaction (79.4-points) and health (76.4-points) indices despite the low ranking of the Economic, Standard of Living and Achievement in Life indices.

In conclusion, the above goes to show that Nigerians can achieve even greater feats if key government policies tackling mental health, happiness and permanently putting to an end the security and economic crisis in the country are formulated and strongly implemented.


SOURCE : https://brandspurng.com/world-happiness-day-nigerians-social-interactions-remained-high-amidst-poor-economic-situation/

The Nigerian Electricity Regulatory Commission (NERC) has said that prepaid meters will soon flood the market with the licensing of 87-meter asset providers (MAPs).

According to the agency, what the power sector regulator is downplaying, is that there is going to be an increase in the bills to be paid by electricity consumers in the country who get new meters under the latest regulation.
On March 12, 2018, Dafe Akpeneye, NERC’s commissioner, legal, licensing and compliance, unveiled the new regulation in Uyo, Akwa Ibom State.

He said MAPs will be independent providers who will be approved by NERC but contracted by the DisCos “to bridge the metering gap”. Dafe also said that the Discos are to be saddled with the responsibility of providing meters and replacing faulty devices within 48 hours, as was provided in section 10 (5) contains the new provision of the NERC act.

An analysis of the Meter Asset Provider Regulations 2018 (Regulation No Nerc-R-112) by energy analyst shows that those who benefit under the new system will pay a monthly service charge. Under chapter iv, section 10 (“Rights of Distribution Licensees”), subsection 5, the regulation states: “The Distribution Licensees shall include a metering service charge as a clear item on the billing of its customers provided with meters under an MSA with MAPs and shall be separate from the energy charge. The metering service charge shall be based on the outcome of the procurement process for the MAP and subject to the approval of the Commission.”

It was noted that this provision was not contained in the draft posted on the NERC website. But the finalized document, approved by the ministry of power and made public by NERC, is now on the regulator’s website and contains the addition. Section 10 (5) was missing from the draft even if the numbering has changed In 2015, NERC had outlawed “fixed charge” from tariffs, abolishing the monthly average of N750 added to customers’ bills whether or not they use electricity.

But the abolition of the fixed charge then was accompanied by a slight increase in tariff. NERC’s latest regulation came into effect on March 8, 2018, and will be enforced by the commission from April 3, 2018.

The objective, according to NERC, is to provide standard rules to “encourage the development of independent and competitive meter services, eliminate estimated billing practices, attract private investment to the provision of metering services in NESI, close the metering gap through accelerated meter roll out and enhance revenue assurance in NESI”.

SOURCE: https://brandspurng.com/nigerians-to-pay-more-as-nerc-hikes-electricity-tariff/

Esp pure water distributors with no cover. heated pure water by the sun. SMH

is it not more than this?

Its Didier, Didier Drogba

Jumia launches its Annual Mobile Report highlighting the 2017 main industry trends, ahead of this year’s Mobile Week.

A recent report on the Nigerian Mobile Sector by Africa’s leading e-commerce company Jumia has revealed an 11% increase in the number of Nigerians who visited the Jumia Website via their mobile phones – 79% in 2017 versus 71% in 2016. Meanwhile, those who used their desktop computers or laptops dipped to 18% in 2017 compared with 29% in 2016.

The report also shows that in 2017, 70% of Nigerians preferred the cash on delivery option, compared to 28% & 12% for credit/debit cards and mobile money options respectively.

Speaking at the launch of the Mobile Report in Lagos, CEO of Jumia Nigeria, Juliet Anammah, described the upward shift from desktop to mobile as a positive development. She attributed the increase in the number of mobile phone users to the multiplicity of affordable smartphones, especially the Asian mobile brands which continue to build on their Africa-specific strategy by introducing lower price points’ smartphones adapted to the profiles of African users. She also listed a growing market for second-hand devices and the increasing use of social media sites (active social media users) as contributing factors.

Anammah further hinted that “the mobile industry continues to play an increasingly important role in the socio-economic development of the African region. As Nigeria swiftly becomes a mobile-first country, with mobile phone penetration currently at 84% of the population, Jumia is doing its bit to close the gap with sales initiatives such as Jumia Mobile Week.”

This year, the stage is set once again for the biggest sale of mobile phones, beginning March 19th through 25th. This is a mobile-phone-only one-week-long sales event dedicated to opening up our customers to a wide range of mobile devices at half the normal prices. “We believe that, by end of 2018, at least every Nigerian will have access to a mobile phone,” added Anammah.

In his remark, the Chief Transformation Officer of MTN Nigeria, Olubayo Adekambi identified “the expansion of E-commerce into a dual business model that blends the physical and the digital to create an ecosystem between brands and consumers across the two worlds”, as among the major factors fueling the increase in adoption of smartphones.

In order to ensure rural dwellers have increased access to ICT devices such as smartphones, the National Information Technology Development Agency (NITDA) has created an IT Innovation hub, which has the capacity to produce e-literate groups from low skilled or low paid workers, unemployed people, and those with disabilities who do not have access to these ICTs.

“NITDA has seen in ICT the potential to change new and old forms of economic activity. We’ve created e-Learning Centres to further enrich the rural communities’ quest for learning and for continuous after-school reading and learning by both the students and teachers, among other initiatives,” noted the Government’s Agency Director-General – Dr. Isa Ali Pantami.

The 2018 Mobile Report launch also had other Telecom & IT experts in attendance; as well as a host of Jumia brand partners, such as Techno, Infinix, Samsung etc.

Find the Mobile Report here

About Jumia Nigeria
Jumia aims at creating a connected digital Africa to improve people’s lives on the continent, thanks to the Internet. Therefore, Jumia’s mission is to connect African consumers and entrepreneurs to do better business together. Jumia has been creating a sustainable ecosystem of digital services and infrastructures through online and mobile marketplaces and classifieds to expand your horizons. Founded in 2012, with a presence all over Africa, the group has Jumia Mall, Jumia Travel, Jumia Market, Jumia Food, Jumia House, Jumia Deals, Jumia Cars, Jumia Jobs and Jumia Services within its ecosystem.



SOURCE: https://brandspurng.com/nigerias-mobile-industry-patterns-2017-70-nigerians-prefer-cash-on-delivery-to-online-payment-video/

This one strong gidi gan

The Nigerian National Petroleum Corporation (NNPC) would not relent in its quest to get the nation’s four refineries back to their optimal, nameplate capacities.

Group Managing Director of the corporation, Dr. Maikanti Baru disclosed this shortly after receiving this year’s Man of the Year Award from Nigerian NewsDirect, a Lagos-based daily publication, in Lagos, at the weekend.

Dr. Baru said as part of the ongoing reforms in the NNPC, the corporation had been holding far-reaching discussions with some consortia to get the best funding options towards the refineries’ overhaul.

He added that the corporation, under his watch, had recorded remarkable progress in resuscitating some of the nation’s critical downstream infrastructure, a development which had ensured seamless supply of products Nationwide, until the recent past hiccups which are now under control.

“Since coming on board, we have made the revamp of our abandoned assets and critical downstream infrastructure a key component of our corporate vision of 12 Business Focus Areas (BUFA),” he stated.

Dr. Baru said over the last few months, several crude oil, petroleum products, and natural gas pipelines were resuscitated while more than half of the nation’s 21 strategic depots were also upgraded.

He decried acts of pipeline vandalism, crude oil theft, and sabotage which he noted had resulted in huge loss of revenue, lives, and property as well as damage to the environment.

The GMD called on the security agencies and other stakeholders nationwide to collaborate with the corporation in its on-going campaign against the act of sabotage on the nation’s oil and gas facilities.

While attributing the recent fuel challenges faced in parts of the country to the nefarious acts of hoarders, diverters, profiteers, and smugglers, Dr. Baru stressed that the corporation was working with relevant stakeholders to ensure the sufficiency currently witnessed nationwide is sustained.

Dr. Baru thanked the Editorial Board of Nigerian NewsDirect for conferring on him their Man of the Year Award, saying that the recognition would spur him to rededicate himself to continue to give his best to the Oil and Gas Industry and by extension the country.

He commended the interest shown by the Nigerian media towards the critical sectors of the national economy, a development which he said, had portrayed Fourth Estate of the Realm as partners in progress in the Nigerian project.

Earlier in his address, Chairman of Editorial Board of Nigerian NewsDirect, Prince Aderemi Adekile described Dr. Baru as a patriotic Nigerian with indelible imprints as a frontline engineer, a worthy patriot and one of the best administrators the oil and gas sector has ever produced.

“Today, we are recognizing him for his transparency, unrelenting effort at ensuring the stability of products supply, revamping downstream infrastructure, opening up of inland basins, growing crude oil reserves, increasing oil production as well as maintaining strategic communications amongst stakeholders in the Nigerian Oil and Gas Industry,” Adekile added.

Nigerian NewsDirect Publisher, Prince (Dr.) Samuel Ibiyemi said the publication decided to celebrate Dr. Baru as one of Nigeria’s best given the lasting impressions he is making on the nation’s Oil and Gas Industry.

Established in 2010, the Nigerian NewsDirect started as a weekly tabloid before going daily last year.

Over the years, the publication has honoured distinguished Nigerians who have excelled in their respective endeavours, prominent among whom were Aliko Dangote, Africa’s richest man, who won the publication’s Man of the Year last year.

SOURCE: https://brandspurng.com/nnpc-vows-that-refineries-will-roar-back-soon/

Succor at last for the residents of Ikorodu as the Lagos State Government has begun a pilot operation of the Ikorodu Terminal. According to reports, residents of Ikorodu community, Lagos Mainland, who spend a large part of the day in traffic can now heave a sigh of relief as the Lagos State Government in line with its commitment to facilitate an effective and efficient integrated transportation system, has commenced pilot operations at its Ferry Terminal at Ipakodo community in Ikorodu end Lagos Mainland.

In the light of this development, there has been a turnaround renovation of the Ikorodu Terminal to upgrade the facility to a world-class, robust and accessible hub for the water transportation and other ancillary services that would engender convenience and safety, efficiency and effectiveness in water transportation experience for both the commuters and operators in Lagos State.

The terminal, when fully operational, will primarily provide an umbrella shelter for ferry logistics with ample and safe space for operators to load and offload passengers, goods, and services. They will provide for the convenience of operators as well as the commuters, safety considerations like water ambulances and emergency rescue and water maintenance in collaboration with Lagos State Waterways Authority (LASWA).

The facilities will also provide for recreation and shopping, banking, food court, parking, customer services, security, and well-maintained conveniences.

Commenting on the development, the Director, Corporate Services, Ikorodu Terminal, Amina Agboola said, “Our role is to work with the operators to ensure that this facility is maximized to help develop and grow water transportation in Lagos. We are very keen to provide efficient, safe and world-class water transport solutions in Nigeria.”

SOURCE: https://brandspurng.com/ikorodu-ferry-terminal-commences-pilot-operations/

As part of its Corporate Social Responsibility (CSR), TGI Group, through its CSR arm, CHI Foundation, has commissioned two ultra-modern water treatment plants in Isolo and Ejigbo Local Government Areas of Lagos State.

CHI Foundation is the Corporate Social Responsibility vehicle of Tropical General Investment (TGI) Group, the parent company of CHI Limited, WACOT and other affiliated companies, manufacturers of products such as Chivita, Hollandia, Big Bull Rice, Renew starch etc.

Members of the benefiting communities could not hide their joy as they turned out in droves for the handover ceremonies which took place at Awoyemi Street, NNPC Road, Ejibgo and Agedegudu Street, Mushin Road, Isolo respectively.

According to the Chairman of CHI Foundation, Rt. Rev. Oluranti Odubogun, the donation of the facilities is part of the Foundation’s bid to impact on the lives of the people and also fulfill the corporate social responsibility of the organization.

Rev. Oluranti revealed that several projects have been carried out by the Foundation since inception all over the country.
“Since the inauguration of this Foundation, several impactful projects have been launched while several communities and people have benefited from these corporate initiatives of our brand”
“The Foundation’s vision of improving the quality of life of Nigerians is not confined to Lagos where the TGI Group has its corporate head office. Rather, the Foundation has provided state of the art borehole facilities to other states of the country like Oyo, Osun and Ekiti states”.

He encouraged the benefiting communities to take ownership of the projects and urged them to take all reasonable measures to protect them against misuse and vandalism. The Foundation promised to maintain the facilities for the next two years during which it will also undertake other projects that will make life more comfortable for them.

Speaking during the commissioning, the Chairman of Ejigbo LCDA, Hon. Alhaji Bello Monsuru Obe expressed delight at the project which he described as timely and thanked the management of TGI Group and CHI Foundation.
“I want to thank the management of TGI Group and CHI Foundation for this initiative and for coming to the rescue of Ejigbo people. This is the kind of CSR project I have been praying for” He said.

Also speaking the Chairman of Isolo Local Government Area, Honourable Samsudeen Abiodun Olaleye said “When I learnt that TGI Group’s CHI Foundation is behind this project, I was not surprised because they are known for good CSR initiatives. I want to show my gratitude to them and also urge our people to make good use of this facility”.

Commenting on behalf of Isolo community, Alhaji F.A Abisiga, Chairman Isolo Community Development Committee (CDC) appreciated CHI Foundation for the project and assured that the facility will be judiciously utilized.
Also commenting, Mr. Mudashiru Rabiu Oke, a community representative of Ejigbo LCDA said, he was delighted when he heard of the intention of CHI Foundation to establish a water project in Ejigbo and that he is more pleased now that the project has been completed and commissioned for use.

Mr. Oke added that the water project will go a long way in reducing the suffering of the people of Ejigbo who have to walk long distances every day to get access to clean water.


SOURCE: https://brandspurng.com/chi-foundation-commissions-water-treatment-plants-in-lagos/

Obafemi Awolowo University (OAU), Ile-Ife, has received a grant of $8 million (N1.3 billion) from the World Bank to establish the University Knowledge Park.

This is contained in a statement signed by Abiodun Olarewaju, the Public Relations Officer of the University and made available in Osogbo.

Mr. Olarewaju said that the grant would be used to establish an African Centre of Excellence with specific focus on the University Knowledge Park (OAK-Park).

He quoted Bamitale Omole, the Vice Chancellor of the university, as saying that the OAK-Park will “create a nationally recognized and internationally acknowledged model for research and technology’’.

Mr. Omole said that the center would ensure the systematic incubation of research ideas and products from OAU and other partnering institutions in West African.

“The objective is to annex the creative and innovative energy of the teeming youths into entrepreneurial endeavor by using appropriate skill-enhancing training and mentoring.

“Specifically, the OAK-Park facility will, among other things aspire to stimulate creativity and excellence in research and innovation,” Mr. Omole said.



SOURCE: https://brandspurng.com/world-bank-commits-8-million-to-nigerias-first-varsity-ict-park-in-oau/

The MTN Foundation has put a smile on the faces of about 1,500 kids in 36 institutions across the country. Each establishment was gifted foodstuff and baby care products.

According to Dennis Okoro, Director, MTN Foundation, “the provision of basic living amenities and consumables to the underprivileged is critical to the growth and development of our country. We are passionate about this and that is what these initiatives are about, making life better for the children of this great nation”.

The management of the homes visited expressed their gratitude for MTN Foundation’s care, which they described as timely and uplifting.

MTN Foundation Director, Mrs. Mosun Bello-Olusoga noted that “Children’s homes such as these typically have a hard time sourcing fund. We all need to do our part, we all need to do more. Moments like these give us the opportunity to step out, reach out and show love.”

During each visit, MTN staff and representatives of the Foundation spent time with the children, talking about life, interests, and inspirations as well as playing with the kids.

“These are very special places with very special children. Bursting with ideas, kids are such great dreamers not bound by perceived limitations. They are so full of love, children are an inspiration to us all! I am grateful and honored to have been part of this,” said Adekemi Adisa, a General Manager in MTN’s Human Resources Division.

Places visited include Kids with a vision Foundation, Jos; Katsina children’s home; Al Ansar home, Abuja; Bethesda Home for the Blind, Lagos; Grace Orphan Rescue Foundation, Rivers; Eruobodo Centre for Special needs children Ogun; Ancilla motherless babies home, Imo and Save the child motherless and abandoned babies home, Owerri, Imo State.

The MTN Nigeria Foundation works with local and international partner organizations to implement sustainable projects focused on mother and child health, youth empowerment and arts and culture.Established in 2004, the Foundation is the corporate social investment arm of MTN. Buoyed by the continued patronage of its customers, MTN remains a dominant player in Nigeria’s ICT

SOURCE: https://brandspurng.com/mtn-foundation-donates-items-to-motherless-homes-across-nigeria/

Despite the economic recession, Nigerians are Africa’s fifth happiest people, according to a new report released Wednesday that called on nations to build social trust and equality to improve the well being of their citizens. The report also noted that Nigeria’s position improved from 95 to 91 position.

Mauritius leads the rest of Africa in happiness. Strife-torn Libya is surprisingly ranked second, ahead of Algeria (formerly number one in Africa in 2016). And even a bigger surprise, another crisis-torn nation, Somalia is Africa’s sixth happiest country ahead of Cameroon and South Africa, ranked 7th and 9th respectively. Gabon is eighth and Ghana eleventh, while Morocco is fourth before Nigeria. Ivory Coast came at the tenth position.

The World Happiness Report ranks 156 countries by happiness levels, based on factors such as life expectancy, social support, and levels of corruption.

At the bottom ten are Zimbabwe, Botswana, Malawi, Guinea, Liberia, Rwanda, Tanzania, South Sudan, Central African Republic and the worst of them, Burundi.On the global stage, the Nordic countries have dominated the index since it first was produced in 2012. Rounding out the Top 10 this year are Norway, Denmark, Iceland, Switzerland, the Netherlands, Canada, New Zealand, Sweden and Australia.

Unlike past years, the annual report published by the U.N. Sustainable Development Solutions Network also evaluated 117 countries by the happiness and well-being of their immigrants.

Last year, Finland placed fifth in the ranking.

Countries in sub-Saharan Africa, along with Syria and Yemen, are the least happy of the 155 countries ranked in the annual report released at the United Nations.

“Happy countries are the ones that have a healthy balance of prosperity, as conventionally measured, and social capital, meaning a high degree of trust in a society, low inequality and confidence in government,” Jeffrey Sachs, the director of the SDSN and a special advisor to the United Nations Secretary-General, said in an interview.

The aim of the report, he added, is to provide another tool for governments, business, and civil society to help their countries find a better way to wellbeing.

Germany was ranked 15 from its previous position one step higher, followed by Belgium (16) and Luxembourg (17).

President Trump has not made America happier again. The United States dropped further from last year’s ranking (14) to 18. For the second consecutive year, the United States has taken a tumble in the World Happiness Report’s annual ranking of more than 150 countries, published by the Sustainable Development Solutions Network, a United Nations initiative.

The rankings are based on six factors — per capita gross domestic product, healthy life expectancy, freedom, generosity, social support, and absence of corruption in government or business.

“The lowest countries are typically marked by low values in all six variables,” said the report.

The report also shows that Africans are optimistic about the future, with Nigerians the leaders in this regard.

“The majority of African countries rate life at present below the mid-point of the Cantril ladder scale in the latest available Gallup World Poll.

Nigeria’s track record of such positive expectations is well documented. Cantril’s 1960s study already reported a difference of 2.6 points between the country’s average present (4. and future (7.4) ladder ratings.82 Similarly, in 2016, there is a difference of 2.9 points between Nigeria’s present (5.3) and future (8.2) ratings in the Gallup World Poll. An international study of comparative ladder ratings in ten countries with large populations, including China, India and the United States, found Nigeria’s 2.6 point difference between the present and future ratings to be by far the largest.83 Nigeria’s spirit of optimism may be exceptional by world standards, but not in Africa.



SOURCE: https://brandspurng.com/world-happiness-report-2018-nigerians-are-the-5th-happiest-in-africa/

The price of cooking gas in Nigeria decreased by -1.56% month-on-month and decreased by -20.40% year-on-year to N2155.97 in February 2018 from N2,190.07 in January 2018, National Bureau of Statistics, NBS, report has shown.

The report titled, Liquefied Petroleum Gas (Cooking Gas) price watch, was published on the bureau and made available to Brand Spur Nigeria.

The report said that the Average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) decreased by -1.56% month-on-month and decreased by -20.40% year-on-year to N2155.97 in February 2018 from N2,190.07 in January 2018.

Borno (N2500.00), Yobe (N2500.00), and Anambra (N2364.29) had the highest average prices for the refilling of a 5kg cylinder, while Abuja (Nl,820.00), |Ebonyi (N 1,860.00) and Ekiti (N 1,950.00) recorded the lowest average prices for the month of February.

The NBS report also showed that the average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (cooking gas) increased by 0.12% month-on-month and decreased by -18.94% year-on-year to N4333.27 in February 2018 from N4,327.89 in January 2018.

Akwa Ibom (N5,000.00), Benue (N5,000.00) and Kogi (N4,816.67) had the highest average prices for the refilling of a 5kg cylinder, while Oyo (N3871.05), Ogun (N3788.89) and Lagos (N3,727.78) recorded the lowest average prices for the month of February.

Based on a zonal analysis, the North East recorded the highest price average for refill five-kilogram cylinders with cooking gas at N2,291.67 and at a price average for refilling 12.5-kilogram cylinders at N4,306.25. North Central recorded the lowest price average for refill five-kilogram cylinders with cooking gas at N2,085.00.

The south-south had the highest average price for refilling a 12.5-kilogram cylinder with cooking Gas at N4,641.10 as well as the second lowest average price for refilling a five-kilogram cylinder at N2,152.62.

SOURCE: https://brandspurng.com/nigerians-paid-less-for-cooking-gas-in-february-nbs/

The National Bureau of Statistics, NBS, said the average price per liter paid by consumers for National Household Kerosene increased by 0.10% month-on-month and decreased by-18.12% year-on-year to N288.57.

According to a report obtained from the Bureau by Brand Spur Nigeria, the price of per litre Kerosene increased to N288.85 in January 2018 from N284.03 in December 2017.

The report reviewed States with the highest average price per liter of kerosene were Plateau (N319.44), Nassarawa (N316.67) and Bayelsa (N315.28). It named States with the lowest average price per liter of kerosene were Kebbi (N257.29), Oyo (N260.53) and Niger (N262.5).

Similarly, the average price per gallon paid by consumers for National Household Kerosene increased by 0.54% month-on-month and decreased by -24.58% year-on-year to N1,030.33 in February 2018 from N1,024.83 in January 2018.

States with the highest average price per gallon of kerosene were Kebbi (N1,203.13), Borno (N1,187.50) & Niger (N1,184.38).

Also, States with the lowest average price per liter of kerosene were Rivers (N828.26), Delta (N858.33) and Abia (N882.50).

SOURCE: https://brandspurng.com/nigerians-paid-more-for-kerosene-in-january-nbs-2/

Top and bottom line beats estimates, up 47% and 37% y/y respectivelyLoan portfolio moderates 8% y/y, despite strong balance sheet growthLiquidity ratio and CAR stand firm at 69% and 27% respectivelyManagement guide, IFRS 9 to shave ₦42 billion off shareholders’ fund 

Earnings beat estimates, thanks to trading gains

ZENITH BANK released its FY’17 result, posting improved y/y performances across both top and bottom line – up 47% and 37% respectively. Although we had anticipated stronger earnings for the period given the already impressive performance as at 9M’17, Q4 earnings still came in much better than our estimate with FY’17 Gross Earnings and PAT coming in 10% and 14% ahead of our respective estimates. Particularly, we highlight marked deviation from our estimates across a few line items. Whilst Interest Income rose 23% y/y to ₦475 billion (Vetiva estimate: ₦469 billion), Non-Interest Income more than doubled y/y to ₦271 billion, beating our estimate of ₦211 billion and spurring a 47% y/y rise in Gross Earnings.

According to management, Non-Interest Income was largely driven by trading gains, as well record processing volume of the transaction – a trend we attribute to improving the business environment. We had highlighted that whilst lower interest rate environment pressures Interest Income, the impact of moderating rates is positive for Non-Interest Income as prices of fixed income instruments appreciate – 23% of ZENITHBANK’s assets are invested in fixed income securities. Also, ZENITHBANK reported Derivative Income of ₦68.7 billion for FY’17, a significant jump from the ₦20.1 billion recorded in FY’16.

Furthermore, whilst Operating Expense came in higher than we had estimated at ₦227 billion (pressured by a 14% q/q rise in Q4’17), Interest Expense was mildly better than our estimate at ₦217 billion.

Impairment charge, however, presented the biggest surprise for the period. Notably, the bank reported a loan loss provision of ₦51 billion in Q4’17 standalone – above the cumulative ₦47 billion reported at 9M’17. With the total loan loss expense coming to₦97 billion for FY’17, the provision line came in significantly ahead of our ₦55 billion forecast – translating a cost of risk of 4.3%.

Despite this earnings drag, PAT rose from 37%y/y to  ₦177.9 billion, beating our estimate of ₦155.7 billion. With EPS coming in at ₦5.67 (Vetiva estimate: ₦4.96), the Board of Directors proposed a final dividend of ₦2.45 (total: ₦2.70) – translating to a dividend yield of 8.7%. 

IFRS 9 impact looms, loan loss to stay volatile

Given the 170bps rise in NPL ratio to 4.7% in FY’17, we are wary of loan loss expense pressure and anticipate some volatility from this end. Hence, we raise our loan loss provision estimate for FY’18 to ₦86 billion (Previous: ₦42 billion) – translating to a cost of risk of 3.9%. With the implementation of IFRS 9 earmarked for 2018, we highlight that management expects the adoption to lead to a c.₦42 billion reduction in shareholders’ fund.

Consequently, we anticipate moderation in CAR in FY’18 even as the bank looks to explore opportunities to grow risk assets in strategic sectors. However, we note that ZENITHBANK’s CAR at 27% remains significantly better than the regulatory benchmark of 15%. 

Mixed outlook for FY’18, TP revised higher to ₦38.11

Save for large deviations around non-interest income and loan loss provision, we highlight that earnings came in largely in line with our estimates. Whilst we maintain our 10% loan growth forecast for FY’18 (down 8% in FY’17), we expect the y/y moderation in interest rate environment to cap Interest Income growth. However, we expect trading income as well as improving transaction turnover to continue to support other non-interest income.

Given anticipation of possible easing in 2018 and in line with recent rate moderations, we forecast a moderation in the cost of funds to ease interest expense pressure. Particularly, we expect the strong growth in customer deposit recorded in FY’17 (up 15% y/y) as well as the healthy liquidity and capital adequacy ratios to provide leeway for growth in risk assets in FY’18.

Overall, we forecast a flat PAT of ₦180 billion for FY’18 – translating to an EPS of₦5.73. With earnings coming in better than we had estimated, we raise our Target Price to ₦38.11 (Previous: ₦37.09). ZENITH BANK trades at forwarding P/E and P/B ratios of 5.4x and 1.1x vs. Tier I averages of 5.8x and 1.1x respectively.

SOURCE : https://brandspurng.com/zenith-bank-plc-fy17-strong-trading-gains-mask-huge-provisioning/

Wow

At tyms, its not about first to discover, its more about management.

Interesting.. Good one OP

Cool.

The following slide deck was published by British American Tobacco p.l.c. (American Depository Receipts) in conjunction with their 2017 Q4 earnings call.

YEAR HIGHLIGHTS



Successfully completed the acquisition of Reynolds American Inc. (RAI/Reynolds American) on 25 July 2017 for a total consideration of £41.8 billion in a combination of cash and ordinary shares to become the world’s leading international tobacco and Next Generation Products (NGP) business.Continued roll-out and investment in the development of NGPs, with the national roll-out in Japan of our tobacco heating product (THP), Glo achieving 3.6% national share as well as launches in five new markets combined with the continued growth of our vapor portfolio.Volume of cigarettes and THPs grew by 3.2%, driven by the acquisition of RAI, and fell on an organic basis by 2.6%, outperforming the market which declined by an estimated 3.5%.
The Group’s cigarette market share grew 40 basis points (bps), driven by the Global Drive Brand (GDB) portfolio, with volume up 7.6% on an organic basis with market share up, excluding the US, by 110 bps.Group revenue grew 37.6%, with profit from operations up 39.1%, due to the acquisition of RAI, improved revenue from the NGP portfolio, pricing and a translational foreign exchange tailwind due to the relative weakness of sterling.Adjusted, organic revenue grew 6.5% or 2.9% at constant rates of exchange, driven by pricing and the performance of NGP.Adjusted, organic profit from operations at current rates was up 7.8% or 3.7% at constant rates.Operating margin, at current rates, was ahead of 2016 by 30 bps at 31.9%, by 270 bps on an adjusted basis, or 40 bps on an adjusted organic basis.Diluted earnings per share increased by over 600% largely due to a gain of £23.3 billion related to the acquisition of RAI (see page 12) and a deferred tax credit of £9.6 billion from the revaluation of the net deferred tax liability arising on the acquisition net assets to the 21% federal tax rate in the US (described on page 11). On an adjusted basis the increase was 14.9%, or 9.9% on an adjusted, constant rate basis.Dividend per share increased 15.2% to 195.2p, payable in four quarterly dividend payments of 48.8p per share. An additional dividend of 43.6p was also paid in February 2018 – see page 35.

Richard Burrows, Chairman, commenting on the year ended 31 December 2017

“The transformational deal to acquire RAI marked a record year in 2017. The Group continued to deliver on its commitment to high single figure constant currency earnings growth, substantially reinforced the long-term sustainability of that growth with the largest acquisition of a tobacco company ever completed and achieved significant success in its Next Generation Products business. This is an exciting time for the Group and the Board has confidence in the Group’s ability to continue delivering sustainable growth in the years to come.”

CHIEF EXECUTIVE’S REVIEW

The Group delivered another set of strong financial results in 2017, despite a challenging trading environment. Following the transformational deal in July 2017, these results benefit from the acquisition of RAI while also demonstrating the strength of the organic business.

The Group has delivered outstanding returns to shareholders for many years. We recognize that the tobacco and nicotine industry has entered a dynamic period of change. Increased public health awareness, new societal attitudes and rapid developments in new technologies have all combined to create a unique opportunity to accelerate the delivery of our long-held ambition to provide our consumers with less risky tobacco and nicotine choices.

Since 2012, together with RAI, we have invested approximately US$2.5 billion in the growth of our Next Generation Product (NGP) business – comprising vapor and tobacco heating products (THPs). Following the acquisition of RAI, not only have we become the world’s leading vapor company, we have also significantly increased the size of our existing oral tobacco and nicotine business with the addition of leading snus and moist snuff brands in the US. Collectively, we
refer to these products as our potentially reduced-risk products.

Our investments are now coming to fruition and, recognizing that not all consumers are the same, we now have an unrivaled range of exciting and innovative products across the potentially reduced-risk categories – including vapor, THPs, oral tobacco, tobacco-free nicotine pouches and moist snuff. With the increased size and scale coming from RAI, we are clear leaders in the potentially reduced-risk product space and we are confident of leading the NGP category. This
year we generated revenue fromBNGP of £397 million. On a full year basis including the contribution from RAI, this would have been approximately £500million and we expect this to double in 2018 to £1 billion, rising to more than £5 billion in
2022.

SOURCE: https://brandspurng.com/british-american-tobacco-plc-final-results-transformational-deal-marks-a-record-year/

Accenture Strategy recently released its latest Global Consumer Pulse report, which surveyed 24,877 consumers worldwide about their evolving expectations towards companies. The results shed light on the ever-challenging balance brands small and large aim to strike: delivering personalized experiences while safeguarding consumer information and using it appropriately.

The big takeaway: “Hyper-relevant” content is directly correlated with higher customer satisfaction. At the same time, failure to protect consumer data or be fully transparent as to how information is used results in distrust and, ultimately, loss of business.

“Those that succeed will hit a sweet spot whereby customers will be willing to share more personal insights into their world in return for greater value and the confidence that their data is protected,” said Robert Wollan, senior managing director and advanced customer strategy global lead at Accenture, in Adweek.

Here a few relevant findings, as aggregated by Adweek:

Lack of trust costs global brands $2.5 trillion per year. This compares to $756 billion lost by U.S. companies and 41 percent loss of clients.Forty-three percent of U.S. consumers and 44 percent of global consumers reported that they were more likely to buy from companies that personalize experiences.Thirty-one percent of U.S. respondents and 34 percent of global respondents stated they find value in services that learn their needs from personalization.Sixty-seven percent of millennials, 56 percent of Gen Xers, and 42 percent of Boomers claimed they would be willing to share their shopping preferences in order to improve the service they received.Eighty-seven percent of global consumers and 92 percent of U.S. consumers claimed they believe it is extremely important for companies to safeguard their information.Fifty-eight percent of global consumers and 66 percent of U.S. consumers want companies to be more transparent about how the information they gather is used.

Accenture’s research asserts that on the whole, “many aspects of customer sentiment and frustration have changed very little over the years.” Nevertheless, despite the additional investments made to improve CX, few have been successful in generating growth or competitive advantage.

In order to address what the company is referring to as a “CX stagnation,” they proposed three fundamental opportunities. Primarily, companies should focus on minimizing “switching,” referring to the loss of one customer or client to another brand or company, by addressing the most common customer service frustrations such as having to contact the company multiple times for the same reason, dealing with unfriendly or impolite employees, and not being provided what was promised at the time of purchase.

The generation with the highest propensity to “switch” and therefore in need of the most retention efforts? Millennials. This is due in large part to their elevated “digital prowess” rendering them more adept at identifying their alternatives and accelerating purchasing power that has them on pace to control $24 trillion in wealth by 2020.

A second important opportunity outlined in the report includes upping the speed and scale at which uniquely-catered and innovative experiences are delivered. In order for this to be successful, two critical puzzle pieces are required: personalized and contextual data and digital trust. The underlying theme here is to work towards being a “living business,” with services and content that “always matter.”

Finally, Accenture points to AI as a significant space to be tapped into with respect to addressing the current customer experience dilemma. Per the report, 50 percent of customers no longer care if they are interacting with humans or AI-enabled technologies if it means getting a favorable experience. Further, of the 44 percent of consumers claiming they use some type of virtual assistant, 22 percent responded they do so on a daily basis.

Regarding how satisfactory they find their experiences with virtual assistants, 89 percent of U.S. consumers and 87 percent of global consumers reported they were satisfied.

Companies should keep in mind when developing and implementing their AI solutions, however, that more than 40 percent of consumers voiced at least one reason for not trusting digital assistants. As a general best practice, such concerns should never be a second thought and always taken seriously and addressed in a timely fashion.

SOURCE: https://brandspurng.com/lack-of-trust-costs-brands-2-5-trillion-per-year-study/

Nice one...S.R in effect.

Diageo has launched a 13% ABV dairy-free version of its Baileys liqueur in the UK, which is made from almond milk.

This vegan-friendly version of the signature Baileys drink is called Baileys Almande and has been being introduced to the UK following the success of the drink with US consumers.

Baileys Almande replaces the cream in its traditional Baileys drink with almond milk, almond oil and vanilla essence creating a “smooth, nutty flavour”.

The Baileys Almande drinks are packaged in 700ml bottles, and the range will be available from UK retailers with a suggested retail price of £16.

Laura Pearce, Baileys marketing director at Diageo said: “Baileys is one of the UK’s most-loved spirits brands and we wanted to create an indulgent treat that can be enjoyed by those who either cannot or choose not to have dairy in their diets.

“Since Baileys Almande launched in the US, we have been inundated with requests over here, so we’re delighted to be bringing Baileys Almande to the UK!”



SOURCE: https://brandspurng.com/diageo-releases-dairy-free-baileys-made-from-almond-milk/

A US $16m shopping mall is set to be constructed in Nakuru town, Kenya by the Egerton University Retirement Benefits Scheme. This initiative will allow them to meet the growing demand for quality commercial space.

Golden Life Mall

Egerton University Vice-Chancellor Prof Rose Mwonya confirmed the reports and said that the mega project dubbed Golden Life Mall will probably be completed within two years once construction commences.

Also, confirming the news was Nakuru Governor Lee Kinyanjui, who recently presided over the groundbreaking ceremony. He said that the development is significant as Nakuru County seeks to acquire city status.

“We will market the mall as part of the landmark buildings in the town so as to attract diverse investors, including those passing through,” he said.

The shopping mall which will be located along the busy Nakuru highway will be a landmark building that will improve income flow for the university’s scheme. Additionally, on a mission to de-congest the town, ample parking and enough office space will be catered for.

The county boss challenged pension schemes in the devolved unit to invest more in housing referring to the high demand for affordable homes that could provide much-needed revenue streams for the funds.

Shopping malls in Nakuru

Currently, Nakuru County has a number of shopping malls that are already in operation. They include Naivas super centre Mall, Rivanas Arena, Tapoos Complex, Westside Mall and Imani Shopping Mall among others. Westside Mall is considered to be the largest and most prestigious mall in the town. It is also considered as an ultra-modern commercial centre.


SOURCE: https://brandspurng.com/us-16m-shopping-mall-to-be-constructed-in-kenya/

we need more down south as well.

Interesting

The latest data from the NBS in its Foreign Trade in Goods Statistics report for Q4 2017 show the total value of trade as N6.02trn, representing a decline of less than 1% on the preceding quarter.

Compared with Q3, the total export value was 9% higher at N3.91trn and the import value 15% lower at N2.11trn. Thus a surplus of N1.80trn (US$5.9bn) was achieved. When we consider the full year data, we note a surplus of N4.04trn in 2017 compared with a deficit of N290bn recorded in 2016.

The decline in imported products is partly linked to the modest success achieved by the FGN in its import substitution strategy. Local substitution has been primarily focused on agricultural products. The data show a 29% decline in the value of food imports from N434bn recorded in Q2 2017 to N337bn (US$1.10bn) in Q4.Additionally, the spending capacity of households remains subdued despite the nascent economic recovery, resulting in soft demand for foreign purchases.The significant depreciation of the naira, when compared with the fx rate in 2015, should encourage export activities. We understand that there has been a pick-up in food exports. However, crude oil gulped the largest share of exports, representing 83% of total exports in the quarter, and other oil products a further 12%.

In the quarter under review, Nigeria exported goods valued at N383bn to other African countries; exports to ECOWAS members accounted for 40% of this figure.Globally, there has been growing concern about a potential trade war following US President Trump’s threat to impose additional tariffs on specific products. A potential implication for Nigeria’s trading activities would be escalated the cost of imports.In our opinion, trade policies within Nigeria need to become more export-oriented without diminishing efforts geared towards trimming the country’s import bill.

SOURCE: https://brandspurng.com/nigeria-return-to-trade-surplus-in-2017/

Indorama Eleme Fertilizers & Chemicals Limited (IEFCL), one of Nigeria’s main fertilizer suppliers, plans to produce 750, 000 tons of urea during the next agricultural season. Sanjay Srivastava, the sales and marketing manager told Dailytrust.

The manager said that the company also plans, in line with the Presidential Fertilizer Initiative (PFI), to double the volume of fertilizer it supplies to the country from 180, 000 tons to 360, 000 tons this year. Validated in December 2016 by President Buhari, the PFI is a directive to reduce fertilizer imports and make it available and affordable for farmers.

For the record, the company operates the world’s largest urea production plant with an installed capacity of 1.4 million tons yearly in Rivers state, Southern Nigeria. It plans to create Africa’s largest petrochemical hub in Nigeria through a $5.8 billion investment by 2022.

SOURCE: https://brandspurng.com/nigeria-indorama-plans-to-produce-750-000-tons-of-urea-in-2018/