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REAL ESTATE QUOTE:

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Franklin D. Roosevelt

A plot of land in an estate at Sangotedo goes for about N12m to N15m. Why buy a plot when you can own a brand new duplex?

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Since salary is assumed to be the only source of income for the salaried, it is advisable such an individual fortify himself financially before investing so that adverse investment performance will not have untold effect on him and his family. Therefore, if you are a salaried prospective investor, you need to:

1. GET LIFE INSURANCE
Most families in Nigeria are single income families. If anything bad happens to the income earner, the family gets shattered, at least financially. Again, given the risks inherent in capital market investments, it is only prudent to have life insurance as a first step in one’s investment journey. It is baffling to see many investors very deep into the market, yet they do not have life insurance.

Life insurance is and should be a basic part of any financial plan. Life insurance is a protection for loved ones against financial hardship arising from the death of a breadwinner. This is even more important today than ever before with high cost of funeral expenses, college education and medical bills. So, the first investment option for a salaried individual is to get a life insurance.

2. PREPARE FOR FINANCIAL EMERGENCIES
Life is full of surprises, emergencies do happen, jobs are lost without notice, and even good investment opportunities emerge sometimes suddenly. There is, therefore, need for a cash reserve to help weather financial storms and emergencies.

Cash reserves not only provide for emergencies, they also help ensure investments are not liquidated prematurely or at inopportune times to cover unexpected expenses. There are no hard and fast rules on what the exact amount of the required cash reserve should be, but most financial experts and planners will advise an amount that equals about six months of living expenses.

So, as a salaried person, your next investment should be to have a cash reserve. A cash reserve should not necessarily be in a savings account or under the mattress; it could be in an interest-bearing money market account, money market mutual funds with low to zero luck-up period or another form of very liquid investment that is readily convertible to cash without loss of value.

3. KNOW YOUR RISK APPETITE
As a salaried or fixed income individual, your risk appetite/tolerance is most likely going to be low. You need to know or understand your risk tolerance before engaging in any capital market investment. Your risk tolerance will and should drive the type of investments you go into. Your risk tolerance depends on your psychological makeup, current insurance coverage, presence or absence of cash reserve, family situation, and age, among others.

Talking about family situation, it is reasonable to think that a married individual whose children are still in school will be more risk averse than an unmarried person. On the other hand, older people have shorter investment time horizon to make up for any losses. The reason for this is because the older you get the less time you have to work to recoup losses.

In that case the risk tolerance of an older man will be less than those for younger folks. Again, the more cash reserve and insurance coverage you have, the more your propensity to take risk. Now having known your risk tolerance based on the underlying factors, you can then define your investment objectives

4. SET YOUR INVESTMENT OBJECTIVES/GOALS
Having met those essentials above, you are now ready for a serious investment plan. A good investment plan starts with investment objectives. Investment objectives are the force that determines what you invest in. Investment objectives range from capital preservation, to capital appreciation and constant income generation.

Capital preservation as an investment objective implies that the investor aims at minimising risk of loss by maintaining purchasing power of the investment. So, if you are risk averse or will need money from your investment soon for children’s education or building a house or are nearing retirement, this should be your objective. Investors who aim to see their investment portfolios increase in real terms over a period of time are better suited for capital appreciation as an objective. This is better for investors that are more risk tolerant and those with more potential to recoup losses.

If you are already retired or nearing retirement, and therefore depend on your retirement plan supplemented by investment income, you need an investment that generates income rather than capital gains. In that case, your investment objective should be current income generation. It is always good to have investment goals stated in terms of risk and returns.

5. DECIDE ON ASSET ALLOCATION
Armed with the knowledge of your risk appetite and investment objective, you are now ready to decide on what to invest in, and how much to invest in any asset class. This takes you to asset allocation decisions. Asset allocation involves dividing an investment portfolio among different asset classes based on an investor’s financial requirements, investment objectives and risk tolerance.

A right mix of asset classes in a portfolio provides an investor with the highest probability of meeting his/her investment objectives. Asset allocation is the most important investment decision an investor can make in a portfolio because it demonstrates an investor’s understanding of his or her risk preferences and return expectations.

It is good to strive for a diversified portfolio. Unfortunately, the Nigerian market does not provide a lot of asset classes for optimal diversification, but diversification can be achieved across sectors or industries within the few asset classes in the Nigerian stock market.

6. DECIDE ON HOW TO INVEST
There are different ways to invest in the capital market. You can invest directly by making stock selections by yourself, thanks to the online stock trading platforms that abound the world over. This implies you have what it takes to conduct required research and analysis of companies whose shares you wish to buy. It also implies you have what it takes to know when to sell or add to existing positions.

Another method is to have someone “do the heavy lifting” for you. In this case, that someone, often times called fund manager or portfolio manager, does the research and analysis and selects shares that suit your investment preferences, investment objectives, risk tolerance and appetite as well as your investment time horizon. This route is most suitable for investors that lack the knowledge and time for the required research and analysis. If you decide to go this route, mutual funds are the best bet for you.

SOURCE (abridged): https://nairametrics.com/2019/10/10/investment-options-for-salary-earners/

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Are you a Tech Start-up seeking funding? Do you have innovative and ground breaking ideas that can rule the information and technology world in future and you have been worried about actualizing your dreams?

Save yourself the stress and register for the Dr Kennedy Okonkwo Programme for Tech Enterpreneurs now. The 2019 edition will have 10 ideas go home with 1 million naira each in this maiden edition to help finance their dreams. You get 6 Months free HR, Legal and Operational support for your Business and the creme de la creme is getting an opportunity to be Mentored by The Real Estate Mogul himself, Dr Kennedy Okonkwo.

This is the opportunity you should never miss. Registration closes Friday October 11, 2019. Visit

www.kopeceh.com

for more information.

SOURCE: https://www.lindaikejisblog.com/2019/10/are-you-a-tech-start-up-seeking-funding-read-this.html

The Minister of Labour and Employment, Dr Chris Ngige, said the Federal Government (FG) had yet to commence total implementation of the new minimum wage of N30,000 to all categories of workers because organised labour mistakenly saw consequential adjustment in salary as total salary review.

Ngige spoke on Thursday when the Director General of the Nigeria Employers Consultative Association, Timothy Olawale, led a delegation from the association to the minister’s office in Abuja. Also at the event was the Minister of State for Labour and Employment, Festus Keyamo (SAN).

This is coming a few days before negotiation begins again between the FG and organised labour after labour issued a notice that strike could be imminent if the FG failed to accept its demands on consequential adjustment in workers’ salary as a result of the new minimum wage by October 16, 2019. According to Ngige, the FG had set up a committee that would prepare the ground for total salary review, which would be done in 2020, adding that FG’s personnel budget had risen astronomically from N1.88tr to N3.08tr between 2016 and 2020.

Ngige said, “Today, we are yet to conclude on the matter of the new minimum wage. This is because in the public sector which is mainly governmental; state, local government and the FG, there has not been a conclusive end to it. As we speak, the issue of consequential adjustment is the main issue. The Minimum Wage Act was signed by President Muhammadu Buhari on April 18, 2019. From that day, the National Minimum Wage came to effect. All employers of labour in the public and private sector are expected to obey the law and make sure that the least paid worker receives N30,000 minimum wage.

“However, the private sector is not really so much in trouble. From N18,000, they (private companies) have graduated with some paying more than N30,000 as minimum wage. We have problem with the public service and we are battling to see how we can weather the storm. The main issue is consequential adjustment and I have talked to the other leg of the tripartite (organised labour) to understand that consequential adjustment is not synonymous with total wage review. It is an adjustment that you do consequentially to move the last man on the rung of the ladder to N30,000. By doing so, you impinge on other salary grade levels and therefore, must consequentially move them up.

“Consequential movement up does not mean you do a percentage of the former minimum wage to the present one which is 67%. We have agreed on that but the issue is that they (labour) have mistakenly bounded the two together; the issue of consequential movement and the issue of total wage review.”

SOURCE (abridged): https://punchng.com/minimum-wage-not-salary-review-fg-tells-labour/

Governors of the five South-West states have concluded plans to donate 20 patrol vehicles each to their proposed regional security outfit, Amotekun. Ogun State Governor, Dapo Abiodun, who disclosed this, said the joint patrol team was to ensure the security of the entire South-West region.

Abiodun, according to a statement on Monday, spoke during a stakeholders’ dinner/fundraiser organised by the Ogun State Security Trust Fund Board on Sunday. Ogun was said to have, during the fundraiser, raised about N1bn to fight insecurity.

Abiodun said, “In conjunction with the Development Agenda for Western Nigeria Commission, the five South-West states have agreed to set up a joint patrol team that will be called Amotekun. Each of the states is required to donate at least 20 patrol vehicles, communication equipment and personnel to the task force. The personnel will be recruited from the police, army, vigilance groups and hunters.”

As part of measures to check insecurity, Abiodun said Ogun State would soon start residents’ registration to enable it to plan properly. The governor decried the lack of communication system for security agencies in the state, noting that it was bad that the lack of a proper communication system had stalled proper communication between security chiefs in the state.

He said, “It is shameful that our security agencies do not have a communications system or equipment within the state, meaning that the Commissioner of Police cannot speak with his counterparts in the military, Department of State Services or worse still, he cannot speak with his Area commander, Divisional Police Officers of police stations across the state. Their vehicles are not functioning very well; no tracking devices, no enough finance; so, we are looking at correcting those anomalies with our security trust fund.”

SOURCE: https://punchng.com/swest-govs-pool-100-vehicles-for-regional-patrol/

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The heart is often regarded as the most important organ in the body. It is a muscular organ about the size of the fist. It is called a pump because it pumps blood through every part of the body. If the heart fails, it can result in an untimely death.

Situated slightly left of the chest, the heart is divided into the right and the left sides. The division between the two sides prevents oxygen-rich blood from mixing with oxygen-poor blood. Oxygen-poor blood returns to the heart after circulating through the body.

Meanwhile, heart disease, interchangeably used with cardiovascular disease, has been identified as the number one cause of death in both men and women. According to the World Heart Federation and World Health Organisation, CVD is the leading cause of death and disability in the world, killing 17.5 million people a year. The organisations said around 80% of these deaths were in low- and middle-income countries like Nigeria, where human and financial resources were least able to address the CVD burden.

By 2030, the WHF and WHO said almost 23.6 million people might die from CVDs, mainly from heart failure and stroke. However, the statistics do not call for panic as cardiologists have said the many forms of heart disease can be prevented or treated with healthy lifestyle choices. It’s only important to look out for the warning signs as soon as possible in order to prevent further complications, they said.

For instance, CVD symptoms may include chest pain, shortness of breath, nausea, extreme fatigue and angina, which is a condition marked by severe pain in the chest, often also spreading to the shoulders, arms and neck, owing to an inadequate blood supply to the heart.

According to Turkish-American cardiothoracic surgeon and television personality, Dr Mehmet Öz, cardiovascular diseases can sometimes be found early with regular evaluations. He recommended the following 10 tips to prevent heart disease.

1. AIM FOR 6 to 8 HOURS OF SLEEP EVERYDAY
Men who sleep for less than 5 hours a day are twice at risk of developing heart disease than those who get 7 to 8 hours. Sleep helps to regulate insulin activity and lack of sleep causes the cells to be more resistant to insulin, which results in higher blood sugar and may contribute to weight gain and heart disease.

Öz said exhaustion was another symptom of heart disease often ignored in women. “If you notice that you’re persistently exhausted, even after sleeping well, consult your doctor,” he said.

2. DROP SOME WEIGHT
Your weight matters, but your waistline can be an even better indicator of your heart health. According to Öz, women with waistlines over 35 inches and men whose waistlines measure over 40 inches are at increased risk of heart disease.

“Studies show that losing even just 5 to 10% of your weight can significantly improve your heart health. And 30 to 60 minutes of aerobic exercise at least 3 times a week will help to strengthen your heart and reduce high cholesterol and high blood pressure, especially if combined with a Mediterranean diet,” the cardiothoracic surgeon stated.

3. LAUGH A LOT
Laughter truly is the best medicine, according to Öz. “Your body responds to laughter by lowering levels of the stress hormone, cortisol. Having lower levels of stress and cortisol can decrease your blood pressure and help boost your mood and immunity,” he said. “Studies show that individuals with heart disease who are depressed are twice as likely to have life-threatening health issues, so make sure to add a dose of laughter to your life every day!”

4. DRINK A GLASS OF RED WINE OR BEER DAILY
You may have heard that drinking one glass of red wine a day can improve heart because it is rich in antioxidants that may lower cholesterol. “But did you know beer helps, too?” Öz asked. “Just be careful not to overdo it; too much alcohol can cause high blood pressure, high triglycerides, heart failure, arrhythmias and heart muscle damage. If you don’t drink, it’s not recommended that you start.”

5. CHEW 325MG ASPIRIN PILL
Heart attacks happen when cholesterol plaques inhibit blood flow in the blood vessels that feed the heart. “Aspirin works by blocking certain chemicals like thromboxane, which is naturally produced to clot blood. If you or someone you know is having symptoms of a heart attack, chewing – not swallowing – 325 mg of aspirin as soon as possible could help break up the blockage and restore blood flow to your heart,” Öz stated.

6. VISIT YOUR DOCTOR
Öz recommended knowing your family history as it could help you stay on track with your heart health. “If anyone in your immediate family has faced heart problems, your risk for developing cardiovascular issues increases. Make sure your doctor knows about your family history,” Öz said.

For instance, the cardiothoracic surgeon said African-American women were at higher risk of multiple health conditions that contribute to cardiovascular disease, including high blood pressure and diabetes.

He said, “Heart disease is easier to treat when detected early, so talk to your doctor about your concerns regarding your heart health. If you’re concerned about developing heart disease, talk to your doctor about steps you can take to reduce your heart disease risk. This is especially important if you have a family history of heart disease.”

7. REGULAR SEX CAN BOOST HEART HEALTH
Engaging in stress-reducing activities is one of the most natural ways to improve heart health. According to Öz, studies have shown that regular sexual activity reduces blood pressure. Having sex at least twice weekly has been linked to a substantial decrease in heart disease risk in men.

8. REDUCE SALT INTAKE
Salt is easily one of the most overlooked ingredients when looking at nutritional facts. High sodium is a big contributor to high blood pressure and increases the workload for the heart, which can lead to heart disease. Monitor your sodium intake, especially if you are over 50 years old. If you have high blood pressure, cutting out one teaspoon a day could send you on your way to better heart health.

9. QUIT SMOKING
Nicotine constricts blood vessels and carbon monoxide can damage their inner lining, making them more susceptible to atherosclerosis. Heart attacks are more common in smokers than in non-smokers, Öz noted.

10. EAT HEALTHY, PRACTICE GOOD HYGIENE
A diet high in fat, salt, sugar and cholesterol can contribute to the development of heart disease, likewise poor hygiene. Not regularly washing your hands and not establishing other habits that can help prevent viral or bacterial infections can put you at risk of heart infections, especially if you already have an underlying heart condition. Poor dental health also may contribute to heart disease.

Also speaking to our correspondent, a cardiologist at the Mayriamville Medical Centre, Lagos, Dr Olayinka Hassan, said heart disease was primarily caused by an unhealthy lifestyle. Making recommendations on ways to prevent heart disease, the cardiologist advised Nigerians to “avoid smoking, eat good food and pay attention to family health history.”

Hassan said obesity was a risk factor for heart disease. He, therefore, recommended shedding some weight. “Shed weight as much as possible, exercise for about 30 minutes daily. Eat lots of fish and vegetables and less of burgers and other snacks,” he said.

“Alcohol and psycho-stimulants are dangerous. Also make sure you check your cardiovascular status once a year,” Hassan added.

SOURCE: https://punchng.com/10-ways-to-prevent-heart-disease/

$26bn DIASPORA REMITTANCES: WHERE ARE THE DOLLARS THAT WERE BROUGHT INTO NIGERIA?
By Etubom Ani (former Minister of Finance 1993-1998).

The above question was posed in an article in The PUNCH newspaper edition of September 9, 2019, by columnist Henry Boyo. I have been a daily reader of The PUNCH for the past 10 years and I have not yet read any comments from anyone on this question. There is a need to discuss this issue, as it appears there is massive foreign exchange laundering going on in our banks.

As the architect of the Diaspora remittances in 1996, I am naturally concerned at the abuses disclosed by Boyo. When in 1995, we at the Ministry of Finance reviewed the country’s sources of foreign revenues, we found out that nothing was coming in from Nigerians in the Diaspora, whereas India and Jamaica were living on foreign exchange from their citizens abroad. When I enquired why Western Union and MoneyGram could not receive money from Nigerians abroad, I was told it was due to our tax laws.

As a Chartered Accountant student in 1962, I studied Comparative Commonwealth Taxation in Nigeria, Jamaica and the UK, and I found out that the tax laws of these countries had the same wordings on imposition of tax (“tax is imposed on income accruing in, derived from or brought into”). The question then to me was why income “brought into” India was not taxed in India? On enquiry, I found that India had modified its tax laws to accommodate its citizens living abroad who wanted to send money in foreign exchange to India.

In 1996, I had proposed (and it was accepted by the Federal Executive Council) a new law regarding Nigerians repatriating remuneration from abroad, Nigerians repatriating dividends, royalties, fees, commissions from foreign countries receipts by authors, sportsmen/women, musicians, play writers, artist, etc. Such income repatriated into Nigeria in foreign currency was 100% exempted from tax, provided the foreign currency was repatriated through a domiciliary account with a Nigerian bank! With the promulgation of this law, First Bank Nigeria Ltd brought in Western Union in August 1996 while the USA brought in MoneyGram a few weeks later.

In 1996, Nigerians abroad repatriated about $4.5bn (about 50% of our gross revenue from oil) and we ensured that these amounts were brought into Nigeria, intact, in foreign exchange. The receipts increased exponentially in 1997 and 1998 and we also made sure they were received in Nigeria, in foreign currency. The receipts helped to stabilise our exchange rate mechanism at N82 to a dollar, throughout my tenure as the Minister of Finance, to the extent that the naira was internally convertible currency.

Some years ago, on my visit to London, I went to Western Union office, at Marble Arch, to test by remitting £500 to my son in Nigeria. I first had to convert the money to dollars and to my surprise, Western Union gave me a quote in naira to be claimed by my son. I refused their naira equivalent and insisted that my son must be paid in dollars.

It was obvious to me that there was an arrangement between our Nigerian banks and Western Union/MoneyGram, whereby the former pays from their excess naira liquidity while the later retains the dollars abroad. In other words, the dollar remittance is retained abroad and is laundered by the Nigerian banks. This is definitely against the law which provides that all remittances must be brought into Nigeria in foreign currency via domiciliary account.

If by chance, as in my case, the dollar is remitted into Nigeria, the Central Bank of Nigeria on August 14, 2014, introduced the Outward Money Transfer Service and authorised the same MoneyGram and Western Union to re-export, in tranches of $5,000 per transaction, to Nigerians abroad, on payment of the naira equivalent at the CBN rate of exchange. Thus, Nigeria is the only country in the world re-exporting its remittances.

It is relevant to note that the naira is not a convertible currency but remittances which are meant to stabilise our exchange rates are re-exported! There is something wrong at our Central Bank. It could be that we have imported the mentality of commercial banking into the CBN. We now need real central bankers to govern our Central Bank. We have central bankers amongst those in the CBN, and we also have central bankers amongst the members of the Nigerian Economic Society or, alternatively, indeed, we can even go outside Nigeria to employ central bankers.

The fact is that the Diaspora remittances are not retained in Nigeria and there is a collaboration between the CBN, Nigerian banks and Western Union/MoneyGram. In such an event, government must investigate the infraction, punish the money launderers, and recover all past Diaspora remittances retained abroad! The Outbound Money Transfer Services must be stopped and all our remittances retained for naira stability and the nation’s development.

Mr Etubom Anthony Ani is a former Nigerian Minister of Finance, from 1993-1998.

SOURCE: https://punchng.com/re-26bn-diaspora-remittances-where-are-the-dollars/

You read it right! Kissing on the ear can make the baby or adult permanently deaf. This condition is known as “Cochlear ear kiss injury.”

“Cochlear ear kiss injury” / “Kiss of Deaf” or “Reiter’s Ear Kiss Syndrome (REKS)” came into attention, when Dr. Levi Reiter, professor, and head of the Audiology program, at Hofstra University in New York reported a case of sudden sensory neural hearing loss in a 49-year-old female after getting a kiss from her 4-year-old child on her left ear.

Immediately after such a sudden kiss, the person can suffer from sudden and potentially permanent hearing loss along with other ear symptoms like tinnitus, hypersensitivity to sounds, distorted sound perception, and ear fullness, etc.

MOTHER LOST HER HEARING
While watching T.V, the 4-year-old child gave a vigorous, sudden and unexpected kiss to her mommy, which unfortunately landed directly on the external auditory canal (EAC, outer opening of the ear) of her ear. Immediately after the kiss, the mother had a complete loss of hearing in her left ear. She also had other symptoms like dysacusis, screeching tinnitus, and continuous unprovoked facial muscle spasms also on the same side.

Six months before the incident, the mother had received a routine audiometric evaluation and was confirmed to have normal hearing. The mother was also in a good general health condition and was having no ear-related difficulties.

PROGRESS
One week after the incident, the mother was symptomatically better, with a reduction in the loudness of tinnitus and episodes of muscle spasms. At one year follow-up, the patient was still having tinnitus, but of less severity, only in quiet environments. Her hypersensitivity remains unchanged. Her facial muscle twitchings were persisting, but only on exposure to loud sounds.

In view of her hypersensitivity to loud sounds, an auditory binaural loudness balance (ABLB) test was done and was suggestive of recruitment (cochlear injury).

REASON FOR HEARING LOSS DUE TO KISSING
A sudden kiss on the external auditory canal (ear-opening) can create a strong negative pressure and a suction effect that pulls the delicate tympanic membrane (eardrum) outwards. This also pulls the chain of three tiny ear ossicles/bones (malleus, incus, and stapes) outwards. This can leads to dislodging of stapes footplate from the oval window of the inner ear.

Once stapes footplate gets dislodged, perilymph (fluid inside the ear) leak occurs, which will cause damage to outer hair cells (nerve endings inside the ear). These hair cells are the end organs for hearing and damage to them can lead to hearing loss, tinnitus, recruitment, and hyperacusis, etc.

Infants and children are at increased risk of having hearing loss following such kissing than adults. This is because of their narrow ear canal, delicate ear structures, the more flat position of the tympanic membrane (eardrum) and the high suction force created by the adults while kissing.

TREATMENT
From 2008, after the report of this case, Dr. Reiter has identified more than 30 such “Kiss of Deaf” victims. “There are a lot of cases of unknown unilateral hearing loss in kids, and I am sure that a good portion are from a peck on the ear,” Dr. Reiter says.

As of today, there exists no definite guidelines and treatment for cochlear ear kiss injury/kiss of Deaf. Dr. Reiter speculates that intratympanic injection of corticosteroids, as done in cases of idiopathic sudden sensorineural hearing loss, may be helpful for such patients, but only if administered within the first few days of the incident.

Since the exact incidence of the disease is unknown, and there exist only a few case reports, no randomized control trials exist on the treatment for such a case. Hearing aids have been tried in some of these patients. Though this will help them in hearing better, no improvement has been observed for other ear symptoms.
Prevention is the best option

Though the cases of “Cochlear ear kiss injury” are rare, one should be aware of this condition. Although infants and children are adorable and cute, and you have an urge to kiss on their ear’s, it is very important not to do so, as it can cause permanent hearing loss to them.

SOURCE (abridged): https://www.e4ent.com/news/cochlear-ear-kiss-injury/

Nigerian technology start-ups have led the continent by raising the highest amount of funds (over $1m) to scale up their operations in 2019. Nigeria was followed by South Africa and Egypt in terms of amount raised, data collated by the Insights Director, Ecosystem Accelerator and M4D Utilities at GSMA, Maxim Bayen, stated.

According to the data, about 15 Nigerian tech start-ups raised a total of $237m in 9 months. The 2019 data indicated that the equity and non-equity deals in Africa’s tech ecosystem were already over $530m by 61 start-ups.
Nigeria tech space over the years had become the most preferred investment destination for investors with the country’s start-ups raising $178m in funding rounds in 2018, according to a report by Techpoint Africa.

In January this year, Andela, an African-focused company that builds talented software engineers, raised $100m Series D funding led by Generation Investment Management with participation from existing investors, comprising Chan Zuckerberg Initiative, GV, Spark Capital, and CRE Venture Capital. Nigerian fintech start-up, TeamApt, received $5.5m Series A fund from a number of investors led by a Nigerian venture capital company, Quantum Capital Partners. In March, Carbon (former Paylater) got $5m debt facility from Lendable and Farmcrowdy got $1m seed investment from Ajayi solutions and two other investors.

Kudi, a digital payment start-up, got $5m Series A investment from a French venture capital, Partech in April; and MDaaS Global received $1.1m seed round from investors led by Alitheia Capital in the same month. Gokada raised $5.3m Series A round from Rise Capital and three other investors in May. Anergy raised $9m Series A round from Breakthrough Energy Ventures and three other investors and Max raised $7m from Novastar Ventures, Yahama Motor, Breakthrough Energy Ventures, Zrosk Investment Management and Goodwell Investments.

The industry data indicated that in July this year, Opay got $50m from Sequoia China, IDG Capital, Source Code Capital and Opera. 54gene raised a total of $4.5m from Y combinatory, Fifty Years, Better Ventures, KdT Ventures, Hack VC and Techammer as of July. In August, TechAdvance, a fintech start-up, received $1m funds from Lamar Holding; and Kobo360, a logistics and transport company, $30m from Goldman Sachs, Asia Africa Investment and Consulting, TLcom Capital, Y Combnator, IFC and some Nigerian banks.

In September, Kuda, a digital bank closed a $1.6m pre-seed round from Start-up bootcamp, Haresh Aswani of the Tolaram Group, Ragnar Meitern and investors. FairMoney, a lending start-up with operations in Nigeria, raised $11m in a Series A round led by Flourish, a subsidiary of Omidyar Group.

Speaking recently, the President, Institute of Software Providers of Nigeria, Yele Okeremi, noted that though funds from venture capitals were perceived to be beneficial to the country, it could hurt the ownership structure of the businesses in the end.

“Although, some people believe that these funds are Foreign Direct Investment and beneficial to the country, but that would have been a sound argument except for the fact that if you allow too much foreign interest into your economy, then you own nothing at the end of the day,” Okeremi said.

He added, “The FDI is good and should be encouraged but if we know what we are doing, it should be a fraction of the local investment. Start-ups are better off having the bulk of their capital form local investors than when it is from foreign investors.”

SOURCE: https://punchng.com/nigerian-start-ups-lead-africa-raise-237m/

We came up with a list of stocks that have a considerable level of liquidity and are transparent. We avoid stocks not found on this list. If you are new to the Nigerian Stock Exchange (NSE)and have no clue about how it works, then we suggest you first of all read this article.

There are over 180 stocks listed on the NSE. This is extremely small compared to stock exchanges of advanced economies e.g. the New York Stock Exchange has about 2,800 companies listed; London Stock Exchange has over 2000 companies listed while the Johannesburg Stock Exchange has about 388 stocks listed.

WHY YOU SHOULD BE CAREFUL ABOUT WHAT YOU BUY
While we acknowledge in anguish that there are not enough companies to choose from on the NSE, we also have a challenge with liquidity. This means despite the 180 stocks or more that we have, most of them do not have the right volumes that can facilitate a trade (buy or sell). After all, you can only buy or sell or stock if there is liquidity for that stock.

Apart from liquidity, most stocks on the NSE hardly release their results on time and when they do it is often too late. Most are also badly run with little to no transparency on what is going on with their products and services, employees and general operations.

We looked at these issues and came up with a list of stocks that we believe have considerable level of liquidity (frequently traded) and are somewhat transparent. We won’t touch any stock not found on this list. This list may be updated from time to time.

Disclaimer: This list is compiled by Nairametrics Research Team and is not a piece of investment advice or recommendation. Always consult your stock advisor for professional guidance on what, when and how to invest.

See the attached PDF document.

SOURCE (abridged): https://nairametrics.com/2019/10/06/nigerian-stocks-we-wont-consider-buying/

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PROPERTY LOCATION
It is within Pearl Nuga Park Estate along Monastery Road, Sangotedo. Just 8 minutes drive from Lagos Business School, and within walking distance of Novare Lekki Mall. The estate is already occupied and is being managed by a vibrant Residents/Owners Association. Neighbouring estates include Crown estate, Emperor estate and Diamond estate.

DESCRIPTION
The Terrace house consists of 3 bedrooms and a maid's room all ensuite, a sitting room with dining area, a kitchen and a store, a guest toilet and parking space for 2 cars. It has it's own borehole with 2 storage tanks.

PRICING
Price of the house is N28.5m.

CONTACT
Telephone: 08164502125.
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Management of BUA Group has promised to crash prices of major food items it produces like sugar, flour, pastas and many others. Since 2016, when Nigeria slipped into recession, the purchasing power of Nigerians has remained low.

Though inflation has been on a steady decline, prices of food items have continued to rise and last month, the Nigerian government closed its borders to tackle smuggling of food items into the nation. This action has caused prices of foodstuff to skyrocket at the market and at the moment, the price of a 50kg bag of rice is N24,000 to N26,000. Before the border closure, it was selling for N14,000 to N16,000.

WHAT WOULD SUPPORT THE CRASHING OF PRICES
General Manager of BUA Ports and Terminals, Mr Mohammed Lile, speaking ahead of the commissioning of the company’s foods manufacturing complex in Port Harcourt, Rivers State, this month, told CNBC Africa that efforts would be made to bring down prices of its products.

Mr Lile explained that the huge factory in Port Harcourt was built in line with the federal government of Nigeria’s policy on self sufficiency, stating that the location of the plant gave it a good advantage to bring down prices of products that would be produced in the complex.

He said the railway lines would reduce cost of transportation which would make it easy to access parts of the country, adding that the sea was also available for ships to berth with raw materials that would be processed at the complex. He then noted that use of gas would supplement the lack of power that faced production in the country which had been powered by its partners, Oando.

Mr Lile, in the interview with CNBC Africa and monitored by Business Post, noted that the $400 million project which started over 5 years ago comprises three factories: a sugar refinery; a flour (pasta) mill; and a power plant. On the sugar refinery which has a 720,000 metric tonnes capacity per annum, Mr Lile said, “This sugar refinery has a storage dome of 60,000 tonnes capacity for raw sugar.”

As for the power plant, Mr Lile disclosed that the plant had three sources that generated 24 megawatts of power.
“We have the turbine, which is 10 megawatts, we have the gas generators which is 12 megawatts, and then we have the diesel generator which is 2 megawatts,” he said.

Explaining how the factories would work together, Mr Lile noted that the imported raw materials, sugar and flour will be stored in the storage dome and processed in the plant. “We import raw sugar which goes into the dome, it is processed, packaged, and then into the market.

"We import raw wheat which goes into the silos, which has a capacity of about 32,000 metric tonnes, processed into flour and then to pasta. We also have the Semolina line,” Mr Lile said. He also noted that the complex has 5 pasta lines.

Mr Lile said that the group had keyed into the Federal Government’s backward integration programme to ensure self sufficiency. “We have acquired land in Lafiaji, Kwara state and Bassa, in Kogi state. The sugar plantation is already ongoing, generating employment which is also going to give us the raw materials to complement whatever we are importing from Brazil."

He said this was an identical step it took when it started cement production when it went from just packaging to full production with the establishment of its plant in Edo state. He added, “We have also expanded the Sokoto plants to 2 million tonnes per annum.”

Mr Lile, however, said the major challenge faced by the company is with the Nigerian Port Authority following the decommissioning of the Terminal B Jetty in the Port Harcourt, Rivers State, Port complex, which is operated by the entity. He noted that the issue was bringing about a loss of job opportunities for many Nigerians.

SOURCE: https://businesspost.ng/2019/10/07/bua-group-vows-to-crash-prices-flour-sugar-others/amp/

A North Carolina mother traded her child for a car in 2018 and faces charges, investigators said.

An investigation began in 2019, according to police, when the child went with 47-year-old Tina Marie Chavis to a hospital in July because of a possible allergic reaction. NBC News reports hospital staff found the child had bruises, then contacted child protective services and law enforcement.

Investigators questioned Chavis, who initially said she was the biological mother, then changed her story and said she adopted the child, per police. She did not have any documentation. Authorities said they later discovered the child’s real mother, 45-year-old Alice Leann Todd, had traded her child to a couple for a 1992 Plymouth Laser when the infant was 1 year old. Todd is charged with the unlawful sale, surrender or purchase of a minor.

Cavis, Todd and 53-year-old Vicenio Mendoza Romero all face the same charges. They’re held on $50,000 bond each in the Davidson County Jail. More charges could come later in the case. The child is with a family member and the suspects are expected in court on Oct. 21, 2019.

SOURCE: https://www.wandtv.com/news/police-infant-traded-for-a-car-in-north-carolina/article_8e3363b6-e648-11e9-b733-d7a0d8336c76.html

A woman in Oregon decided she’d had enough of the rat race, and wanted to turn the clock back to the 1950s. Completely by choice, 30-year-old Katrina Holte now lives as a ‘1950s housewife’, cooking, cleaning and looking after her husband, while making dresses from 1950s patterns in her spare time.

Katrina even transformed her home in Hillsborough into a ‘working shrine’ to the era, fitting it out and decorating it in 1950s decor. Speaking about her new old-fashioned life, Katrina said: "I feel like I’m living how I always wanted to. It’s my dream life and my husband shares my vision. It is a lot of work. I do tons of dishes, laundry and ironing, but I love it and it’s helping to take care of my husband and that makes me really happy."

Katrina spoke about her dedication to the role, saying: "My closet is full of 1950s dresses I’ve made myself. I have 1940s-style furniture in the living room and a traditional bedroom. It’s not like it’s a museum but I do try and make it as close to the era as I can. I can feel like I was born in the wrong decade, especially when I look at everything that is happening in the world now. I feel like I belong in a nicer, more old-fashioned time. But I know everything happens for a reason and it is God’s will that I’m here now."

Knowing her house is spic and span when Lars comes home, after dinner, the couple relax, playing traditional board games like Scrabble together before watching old-fashioned shows like I Love Lucy and The Donna Reed Show.

Katrina said: "I agree with old-fashioned values, like being a housewife, taking care of your family, nurturing the people in it and keeping your house in excellent condition, so everyone feels relaxed."

A part-time seamstress for 10 years, Katrina, who sells her retro frocks across the world, said: "My new life started in September 2018, after I left my job, which was starting to wear me down. I was getting tired and I wasn’t living up to my own expectations. I spoke to my husband and told him I want to be a housewife and he said that was fine with him. It was a fantastic feeling when I quit. I can do what I want to now and run my house as I want to run it. Now I’m a full-time homemaker."

Katrina starts her day at 6.30am, when she wakes and sets out her husband’s clothes, before preparing his breakfast and making him a packed lunch. After her own breakfast she does 15 minutes of vintage exercises.

She explained: "Exercise in the 1930s to 1950s was a lot gentler. There was a lot of stretching, warming up or ‘limbering up,’ as they would say back then. We have the idea today that we have to push our bodies to the limit, but in the 1950s the attitude was simply that you had to take care of it."

The 30-year-old will then have a shower, put on a ‘full face of vintage makeup’ and dress in clothes from the era. "My entire wardrobe is 1950s, made up of dresses I have made myself from original patterns. I always try and look my best. I feel most like myself when I’m wearing a vintage-style dress" Katrina added.

After doing chores around the house like laundry and sweeping up, and taking some time to work on her dresses, Katrina will make sure dinner is ready and on the table for when her husband Lars gets home from work. When he returns, Lars does insist on hanging up his own coat, though:

"When Lars gets home he likes to hang his own coat up, which I don’t mind. I read in a 1950s book that if a man wants to hang his own coat up, you should not feel like it makes you a bad housewife."

When not in use, the television is hidden away, so as not to mess up the vintage look of the room and the couple do not watch cable or streaming channels. Katrina says Lars is ‘very appreciative’ of what she does. She explained:
" I think a man needs his wife to make him feel spoilt every once in a while. He would never expect this from me, though, it was entirely my idea to live like this. It’s always been my dream since I was a little girl. In a way, Lars is serving me, because he makes a lot more money than I do and he knows this is what I want to do in return. He works very long hours and makes my dreams come true, so I try to make his come true, too. It’s an equal partnership. I’m outspoken and I’m definitely not a repressed woman."

While she admits the era was far from perfect, 1950s values really appeal to Katrina. She explained: "The golden rule then was to do to others what you want them to do to you. No decade is perfect, definitely we had big social problems in the 50s, but the people I talk to who lived through the era say it was a time when you could leave your door unlocked and you didn’t need to worry about people breaking in.

"People today have forgotten how to talk to people they don’t agree with and they have lost all their manners. They are always in a rush, they don’t remember to say please and thank you. Nowadays people are looking out for themselves and not thinking about the people around them. All the stories I’ve read are about women borrowing dishes or butter from each other, and the neighbourhood kids all playing together. You find now neighbours will go from the car to the garage to the house and won’t speak to each other."

Katrina said she’s now looking forward to starting a family with Lars, and wants to have four children, saying she’ll definitely dress them in 50s clothes, though ‘when they get older they can make their own choices.’

SOURCE: https://www.unilad.co.uk/life/woman-quits-job-to-become-50s-housewife-because-she-thinks-husbands-should-be-spoiled/

Serial Internet entrepreneur and computer programmer Chidi Nwaogu has won the 2019 Young Leaders Award in the “Media and Entertainment” category with the work he’s doing at Publiseer, a digital content distribution platform for independent African writers and musicians. After rigorous evaluation by the Panel of Judges, the Young Leaders Team announced Chidi Nwaogu as the winner.

Nwaogu’s selection as a winner validates the work he has done as a Young Leader who is poised to make a great change in society. Nwaogu’s selection as a winner of the Young Leaders Award gave him opportunity to network with the Mandela Washington Fellows in Nigeria, leverage on the network of young leaders, and increase his capacity to do more.

Funded by the Mandela Washington Fellowship Alumni Association of Nigeria with support of United States Embassy in Abuja, the award presentation was held during the Young Leaders Assembly that also featured the Grand Finale of the Beyond School Community Challenge.

Chidi Nwaogu is a serial Internet entrepreneur and computer programmer. He is a Westerwelle Fellow 2019, Yunus&Youth Global Fellow 2019, and Halcyon Incubator Fellow 2019. He is also the winner of The Africa 35.35 Award 2019, The Bizz Business Excellence Award 2019, ITU Innovation Challenges 2019, and OD Impact Challenge 2018, just to mention a few.

SOURCE: https://brandspurng.com/2019/10/06/chidi-nwaogu-wins-2019-young-leaders-award-for-his-works-at-publiseer/

The President of Trade Union Congress, Quadri Olaleye, said organised labour would not go on a warning strike before the main industrial action, if government failed to meet workers’ demand on the implementation of the new minimum wage by the close of work on Wednesday, October 16, 2019.

In a communiqué issued at the end of a meeting of leaders of labour unions on Tuesday in Abuja, organised labour had said it would not guarantee industrial peace in Nigeria, if the Federal Government failed to hold a meeting with labour and accept its demand on the consequential salary adjustment arising from the new minimum wage.

Labour said it had demonstrated a great deal of restraint, consideration and patience with government in arriving at the demand of 29% salary increase for officers on salary levels 07 to 14 and 24% adjustment for officers on salary grade levels 15 to 17.

The communiqué said the alleged nonchalant attitude of the government negotiating side had dragged negotiations for consequential wages adjustment unduly, adding that Nigerian workers had exercised tremendous patience and restraint already.

In an interview with our correspondent on Friday, the TUC president said already, labour had begun to mobilise its members for industrial action before the Tuesday ultimatum issued to government. He said, “We had already begun mobilisation of our members for an industrial action long before we made the pronouncement. We have given instructions on mobilisation to our members in the states and all council areas.

“If by October 16, government fails to do what we expect from it, we will start our action with a rally. On the second day (October 17), the strike will begin. We are not going to give any warning strike this time round. We have threatened to go on strike on many occasions. The public can attest to this through media publication and letters to government.”

GOVT YET TO CONTACT US – JNPSNC
Meanwhile, Secretary of the Joint National Public Service Negotiating Council, Alade Lawal, said despite the ultimatum issued, government had yet to contact labour on a date for a meeting. He also berated government for taking too long to constitute a new team that would begin another round of negotiation with labour on the new minimum wage.

Lawal said, “If they want to constitute a new team, must that take a year? It takes less than a day to do that since supposed members are members of the government cabinet. As far as we are concerned, government has not reached out to us.”

DOCTORS WILL NOT STRIKE –NMA
However, President of the Nigerian Medical Association, Festus Faduyile, has ruled out the possibility of doctors joining the strike. In an exclusive interview with our correspondent on Friday, Faduyile said the NMA sympathised with Nigerian workers on the failure of government to fully implement the new wage structure, but added that doctors would continue to cater for patients in various government hospitals across the country.

“It is not likely that we will go on strike but that does not mean that we do not stand with the organised labour on this matter.”

OUR BOOKS ON INCOME, EXPENDITURE OPEN, FG TELLS LABOUR
The Federal Government has called on organised labour to send its representatives to look into income and expenditure books. It said this became important because of the plan of labour to go on strike.

Minister of Labour and Productivity, Sen Chris Ngige, who spoke with one of our correspondents through its Special Adviser on Media, Mr Nwachukwu Obidiwe, said he had always taken the labour into confidence in all decisions taken on the issue of minimum wage.

He said with the situation of economy, everyone must be ready to make sacrifice. He said, ‘‘The FG has promised to open its books to labour to come and look at its income and expenditure. They are free to send representatives to carry out the task. This time calls for sacrifice. Every step the minister has taken so far has been in the interest of the nation.’’

SOURCE: https://punchng.com/minimum-wage-therell-be-no-warning-strike-labour-tells-govt/

The fate of many small refinery projects in the country hangs in the balance while Dangote Industries Limited pushes ahead with its massive project. While 44 refinery licences have been given to private investors, only a few projects, including the one being built by Dangote Industries Limited in Lagos, are underway.

Niger Delta Petroleum Resources Limited is the only company that has been able to establish and run a refinery. It has a 1,000 barrels-per-day refinery at Ogbelle, Rivers State and it is working to expand the processing capacity to 6,000bpd and later to 11,000bpd.

According to the Department of Petroleum Resources, there are a total of 38 proposed modular refineries with capacity ranging from 5,000 bpd to 30,000bpd, and six conventional plants with a total capacity of 1.35 million bpd. It said 24 out of the 44 companies were still sourcing funds as of April 2018, some of whose licences to establish had expired, adding that 20 licences were active.

In August, the Nigerian Content Development and Monitoring Board (NCDMB) said it was providing equity investment for establishment of two modular refineries in Imo and Bayelsa states. It said the 12,000 barrels-per-day modular refinery being constructed by Azikel Petroleum Limited in Bayelsa would come on stream in 2021. It said the 5,000bpd modular refinery being built by Waltersmith Refining and Petrochemical Company Limited in Imo was on track for completion in May 2020.

The National Refineries Special Task Force, which was set up by the Ministry of Petroleum Resources in 2012, said it examined 35 greenfield private refinery licensees/applicants, and only seven were found to have reasonable potential. The taskforce said it was evident most of the applicants for a refinery licence did not have requisite experience and background in petroleum refining and marketing.

It said, “Their technical capability is rather doubtful and their ability to attract the quantum of funds required for refinery projects, running into billions of naira, is questionable. Besides, in many instances, potential financiers evidently insisted on crude supply agreements at rates below international market prices, owing to the prevalent subsidised products pricing regime, as a condition for further consideration of funding applications.”

Aliko Dangote, Africa’s richest man, is building a refinery with a capacity of 650,000bpd, described as the world’s biggest single-train facility. The refinery can meet Nigeria’s requirement of all liquid products, such as petrol, diesel, kerosene and aviation fuel, and will have a surplus of each of the products for export, according to Dangote Industries Limited.

On July 29, Sinopec Corporation announced that the world’s largest atmospheric tower, a piece of equipment that will process crude oil for Dangote refinery, had set sail from China to Nigeria.

“It doesn’t pose any threat whatsoever to smaller refineries. The modular refineries will complement it because the 650,000 bpd cannot meet Nigeria’s requirement on its own. It might be a threat to people who are bringing in products to Nigeria,” the Chairman, Eko Petrochem and Refining Company, Capt. Emmanuel Iheanacho, told our correspondent.

Iheanacho’s company is working towards building a 20,000bpd modular refinery in Lagos. In 2017, it announced the signing of a grant of $797,343 by the United States Trade and Development Agency for the project. “We have finished everything we need to do by way of planning. To build a refinery is not an easy business; it involves a lot of planning, articulation and interaction with government officials, communities and other stakeholders. We have obtained the DPR’s approval to construct,” he said.

According to Iheanacho, a budget of about $250m is needed to build a 20,000bpd to 24,000bpd refinery. “We need to raise finance. The problem is that Nigerian banks do not have sufficient capitalisation to lend one person that kind of money at the required single digit interest rate and for an extended period of eight to nine years. We are deeply into our fundraising activity,” he added.

He said the grant from the US agency was very useful, adding, “It was for the articulation of the detailed engineering, and we have finished it.”

An energy lawyer and Partner at Bloomfield Law Practice, Mr Ayodele Oni, said many of the modular refinery projects would not come on stream, describing them as unbankable. According to him, the Dangote refinery does not constitute a substantial threat to the smaller refineries. He said, “I think the prospects of the modular refineries are fairly okay. There can be a quota system for all the refineries where every plant has a quota. It depends on what government policy will be at that time.

“A few of them that will come on stream will have their strategies, even if it is to sell to other African countries. Many of them will not come on stream; they won’t even reach financial close.”

An energy expert, Mr Bala Zakka, said many people had misconstrued modular refineries as a necessity in order to bridge the refining gap in the country. He noted that many people who went for the modular refinery licences didn’t have the technical competence or financial capacity.

He said, “Modular refineries are supposed to be for people who want to go into refining business but don’t have the financial capacity for large refineries or want to target a particular product such as diesel or aviation fuel. I don’t want to believe that Dangote refinery will be a threat to the modular refineries. We don’t yet know the marketing model Dangote refinery intends to adopt or apply when it starts working. We don’t know the target market. It’s too early to begin to think it will be a threat to smaller refineries. Those who want to build modular refineries should go on.”

Between 1976 and 1989, the Federal Government, through the Nigerian National Petroleum Corporation, built refineries in Port Harcourt, Warri and Kaduna, in addition to an existing refinery in Port Harcourt, which was built by Shell in 1965 (later bought over by the NNPC). But the state of the 445 million-bpd refineries has worsened over the years and no new refinery has been built by the government since 1989.

The Group Managing Director, NNPC, Mr Mele Kyari, said in August that the corporation was committed to revamping the refineries to enable them to “work to an appreciable level or capacity,” with a plan to make the country a net exporter of petroleum products by 2023.

“The combination of the output of the modular refineries, government-owned refineries and Dangote refinery will serve to supply the nation and make Nigeria the centre for export of products to countries in West Africa and elsewhere,” Iheanacho added.

SOURCE: https://punchng.com/small-refineries-fate-uncertain-as-dangote-pushes-ahead/

Car dealers on Wednesday 2nd October 2019 visited the Nigeria Customs Service, Federal Operations Unit, Zone ‘A’ with documents of their vehicles for inspection. This followed the raid on some car sales’ outlets in Lagos by men of the NCS Comptroller General’s task force and officers attached to the FOU. This led to the closure of a number of car marts.

It was gathered also that those who had their papers inspected were later escorted by the Customs officials to the car sales points for further inspection of the vehicles. “If the vehicles are found to be genuinely imported, the shops would be opened,” a customs officer told our correspondent.

Customs had shut some car marts inside the popular Berger Yard along Oshodi Apapa Expressway on Saturday.

It was learnt that the service shut the marts on suspicion that they harboured cars smuggled into the country through the Seme border.

SOURCE: https://punchng.com/car-dealers-besiege-customs-office-with-vehicle-documents/

There is a familiar pattern that has reared its head every first quarter since at least 2016 at PZ Cussons, and it is getting us puzzled. Every end of August, its first quarter of the year, this consumer goods company reports a pre-tax loss. In 2016, when we started tracking, the loss was N2.4 bn, a year later it crashed to N181 mn but there was still a loss, and then another loss of N205 mn a year later. This August, it stayed with the trend, reporting a loss before tax of N1 bn, the highest since 2016. So why these losses?

PZ Cussons is a consumer goods company that sells household products to millions of Nigerians. Its main products include home and personal care products such as Morning Fresh, Imperial Leather, Cussons Baby, Robb etc. It also sells durable electrical appliances such as Haier Thermocool refrigerators, televisions, gen sets, air conditioners, etc.

At the end of its financial year ended May 2019, it reported sales of N74.3 bn, with the Home Appliances segment making up about N47.2 bn of the amount. Despite its pattern of first quarter losses, the company has also reported profits, at least since 2015. The profits have however crashed from N4 billion in 2015 to just over N1 billion this year.

FIRST QUARTER LOSSES
A cursory review of the company’s results indicates that two main factors contribute to its first quarter losses every year:

1. Foreign Exchange Loss – In some quarters where it reported losses, it was mostly as a result of loss on foreign exchange transactions. For example, in 2018 it reported a loss of N668.3 million which wiped out its operating profits.
2. Cost of sales – In other years, it was its cost of sales that contributed to the losses. This year, cost of sales was about 83% of revenues (17% gross margins), leaving little to no room for selling and administrative expenses to eke out a profit.

As a matter of fact, in years (first quarters to be precise) where foreign exchange was a reason for the losses, gross profit margin was over 30%, while in years where it was cost of sales, gross profit margin was under 30%. 2019 marked the first time that it was under 20%. Suffice to add that PZ Cussons does not have external debts and only owes taxes and its suppliers. It also has a healthy cash balance of over N2 billion.

COULD THIS BE DELIBERATE?
Digging into the financial statement of the company did not reveal much. For some reason, perhaps conveniently, the company did not provide notes breaking down components of its cost of sales, neither did it break down its foreign exchange losses. Actions like these often lead investors to suspect foul play.

On the flip side, it could be due to some seasonal reasons where costs are typically higher this time of the year, compared to others. However, this is merely conjecture as the company did not reveal same in its financial statements.

Financial authorities have often raised issues with transfer pricing, a situation where companies within the same group transact with each other and determine how cost between themselves will be accounted for. It is interesting to note that out of the N62 billion in the reported bought in materials and services, N45.6 billion were imported. This is according to the Value Added Statement in its financial year ended May 2019.

The company boldly mentions in its annual report that it “is not prepared under IFRS,” but under CAMA, whatever that means.

WHY THIS MATTERS
Quarterly results help a discerning investor know exactly when to buy a stock. For investors who know that the company typically makes up for its first quarter losses in other quarters, timing the stock is essential. Unfortunately, analysis of the company’s share price history reveals that the stock hardly reacts in any familiar pattern when it announces its results.

Nevertheless, its share price has fallen from about N30 plus in 2015 to N7 as at close of business Monday 30th Sept 2019. As low as the price is, it is still considered expensive at over 144x its earning per share. But these issues matter the most for these reasons:

-- Shareholders should be worried about the pattern of losses reported every first quarter and should demand answers from the company.
-- The company should provide a detailed note to account for its cost of sales to enable investors better analyse its components.
-- Financial authorities, such as the FRCN, need to also take a closer look at results of most entities with significant foreign ownership to ensure that value is retained in the business for minority shareholders.

PZ Cussons is a conglomerate and is owned majorly by PZ Cussons UK with a 73.2% stake. Even though its revenue has remained flat at about N73 billion over the last 5 years, its earnings per share has tanked from N1 to about 25 kobo.

SOURCE: https://nairametrics.com/2019/10/03/pz-cussons-and-its-sticky-pattern-of-losses/

An Australian man took to his Instagram page to advise Nigerians in diaspora to come back home. He said in a video:

"I don't have anything against wanting to go abroad, but those who want to go abroad and never come back to Nigeria are definitely missing out on gold that is yet to be digged up. You have the advtange because you grew up in that country and if you don't dig the gold first, others will and that's exactly what's happening.

Countless Western companies and other companies are coming from outside of Nigeria even outside of Africa and investing millions if not billions into resources in Africa and into Nigeria. Why would successful companies do such a thing into a country that's considered poor and in poverty? It's simply because poor countries have more opportunities to gain resources and succeed than already established and successful ones.

The missing piece to the puzzle however is that the large majority of people in Nigeria don't even know what gold they are sitting on. They never bothered to invest time and effort into understanding what great things are available that they could take advtange of inside the country to benefit from because they are too busy complaining about how bad things are, rather then investing that time in finding out how to take the gold in their own country.

There is a reason why Western businesses go into third world countries and build things inside and make millions and billions of dollars yet majority of the natives in those countries stay poor. The only difference is knowledge and experience and being able to see the opportunities that others don't, and to take advtange of them. Now of course this is much easier said than done.

However, if you dedicate enough time and resources to understanding these things and learning how to do them, you will have a much higher chance of succeeding and becoming greatly successful in Nigeria then you ever would outside of Nigeria."

SOURCE: https://www.gist mania.com/talk/topic,402528.0.html

Senate President Ahmad Lawan has asked the military and other security agencies to use the roads and leave trains for the masses. Lawan said this at senate plenary session on Wednesday while speaking on the cases of insecurity along the Abuja-Kaduna road. He asked the security operatives to ply the road to chase away kidnappers rather than join the “ordinary people” in the train.

There have been incessant cases of kidnapping along the Abuja-Kaduna road thereby forcing the road users, including military officers, to abandon that route for the train service. Lawan, however, said it is the duty of the security agencies to clear the road for other travellers.

“We will also insist that uniform people must not join the train because they are the ones supposed to protect us on the highways. The military, police and all these paramilitary agencies should allow ordinary people to use the train. Let them ply the roads because they will clear the road for other road users to go on the road.”

He also said the senate needs to be “more radical” in ensuring that funds meant for security purposes are judiciously used.

“We need to be radical. We need to give them more funds. It is not enough to give them money, we must see how they utilise the money,” he said.

“We need to go back to the report on the ad-hoc committee on security infrastructure. We could go by way of public hearing to review security infrastructure. The way they are, we are not getting the best out of them.”

SOURCE: https://www.thecable.ng/lawan-asks-military-not-to-abandon-abuja-kaduna-road-because-of-kidnappers

Since November 27, 2017, Mr Johnson Ibrahim has developed a phobia for the long bridge, which stretches from Wawa to Fatgbem Bus Stop on the Lagos-Ibadan Expressway. There is no time he approaches the bridge without suffering a mental trauma. Ibrahim was attacked by a bandit on the bridge and he nearly lost his life in the process. Although he now walks with a limp, he is grateful to God for saving his life. He considers himself fortunate to be alive, having said his last prayers before the unknown assailant pounced on him.

Two days before the attack, the radiator of his car had developed a fault, thereby making the temperature of the vehicle’s engine to rise. Then at about 5am on November 27, 2017, Ibrahim, who lives in Mowe on the outskirts of Lagos, drove outof his residence and headed for his automobile mechanic’s garage in Lagos. He had planned to get the car fixed on that day.

He had kept a bottle of water in the car, with the intention to stop and refill the radiator whenever the engine showed signs of overheating. Before setting out on the journey, he had prayed that the same engine would not stall on the long bridge, having read frightening reports in the newspapers about people getting killed and their mutilated bodies dumped by the killers on the bridge.

Unfortunately, that morning his prayer was not answered. The temperature of the engine went up again, exactly in the middle of the bridge, and he had no other choice than to turn it off right there.

Recalling what happened on that morning, in an interview with one of our correspondents, Ibrahim says, “It was nearly 6am, but the road was already busy. Other vehicles were speeding as if they were in a racing contest, as I turned on the hazard lights of the car and pulled up on one side of the road. I remained in the car for more than five minutes, contemplating whether or not to open the door and check the engine.

“I knew danger might be lurking in the shadows, even at that time of day. But it was also rush-hour. So I thought it would be safe to come down and check the engine, but it turned out to be an error of judgment. I picked the bottle of water and opened the door. I opened the bonnet, but could not see clearly because of the headlights of oncoming cars. So, I went back to my car to get a flashlight. On returning to the bonnet, I was about to pick up the bottle of water when I suddenly saw the shadow of a man through the flashlight. Thank God for the flashlight or I wouldn’t have seen the assailant coming so fast. He would have struck me from behind with the machete in his hand.

“He was quite close. Panting heavily, he looked like a huge monkey. I was terrified and began to run. He came after me, striking me with the machete, from my head to back. When I realised I couldn’t escape, I turned around and fought back desperately. Other motorists drove past, while I struggled with the monster. I was hoping they would stop and help me, but nobody did. I managed to get hold of the machete and forced it out of his hand. But he brought out a knife. By that time, I was drenched in my own blood.

“At a point, he lifted me into the air and tried to throw me down the bridge. I resisted. Suddenly I found myself on the ground, immobilised. I couldn’t move my legs anymore. I waited for him to finish me off. But I didn’t hear anything again.

“Later I recalled that some motorists had stopped on the bridge and come out of their vehicles with weapons of sorts, including sticks. On seeing them, the assailant had fled into the bush. But none of those people wanted to come close to me for fear that my assailant’s and his gang might attack them. They wanted to go back to their cars and drive off. I shouted for help, but my voice was too weak to be heard. At a point, I heard the men saying, ‘We can’t come close to you, please.’ Fortunately for me, one young man summoned courage and pulling another person along, said, ‘Let us go and meet him.’”

Ibrahim spent several months at the National Orthopaedic Hospital, Igbobi in Lagos, where he was diagnosed with a spinal cord injury and thereafter, treated. Although he survived the attack, the injuries he sustained still serve as a reminder of his close encounter with death.

“Anytime I remember the incident, I have a mental trauma. Each time I approach the long bridge, I feel traumatised,” he added.

Just two weeks ago, while driving inward Lagos at about 10.30pm, Mr Joel Akintunde, ran into a cow, which had strayed onto the road from the Kara Cattle Market nearby. “All of a sudden, I saw the cow in the middle of the road. It was very dark and I couldn’t avoid the collision because the road was already partitioned and narrowed down due to the ongoing construction work. My car was badly damaged,” he said.

Although Akintunde’s car was badly damaged, he is thankful that he survived the accident. Blaming the accident on the absence of streetlights on the road, he also lamented the absence of security personnel on the long bridge.

He said, “On Sunday night, I encountered a very enervating traffic jam that lasted about three hours on the long bridge. What made it quite scary was the fact that the road was dark and there was no security. Everyone knows that the long bridge is notorious for being a hideout of criminals. There have been stories about herdsmen attacking and even killing people on that bridge. It was a very scary experience. Everybody was on edge because we were just at the mercy of the hoodlums.

“Government should do something about it. While the ongoing construction work continues, the police should commence regular patrols on the bridge. Also, Julius Berger should ensure the bridge is well-lit at night to ensure safety of motorists and other road users.”

Mr Demola Alao, who regularly plies the Lagos-Ibadan Expressway, has also had his fair share of challenges, which are mostly due to the persistent gridlock on the road. “Last Thursday, before leaving my office in the evening, I decided to check Google map for the level of traffic on my route and I saw it was high. I waited till 11pm and observed that the situation had not improved. Since I was not prepared to spend the night in my office, I drove out of the premises only to be trapped in the holdup, which started from the long bridge.

“I called my co-workers to know how far they had gone and I discovered that some of them had decided to take a one-way option, which is quite risky. I spent about two hours in the traffic. The situation was really chaotic, with articulated vehicles occupying every inch of the road. One of them almost crushed my car, after overtaking wrongfully. I am grateful that I escaped with just a scratch. I got home that day around 2.30am,” he added.

Bimbo Oduyemi, whose workplace is located on the same route, said she always spent the night in her office anytime there was a gridlock on the expressway. She said the agencies coordinating traffic in the area should do something about broken-down trucks urgently.

The Sector Commander, Federal Road Safety Corps, Ogun State, Clement Oladele, said the agency was not unaware of the pain that motorists endured when using the road.

Oladele noted that officials of the agency, like other motorists, were also exposed to the same challenges. He said, “Due to the ongoing rehabilitation of the corridor, miscreants sometimes take advantage of motorists held in the traffic. This also exposes our operatives controlling traffic to risks, as they could be distracted to attend to such security breaches, instead of concentrating fully on ensuring unhindered traffic flow and preventing road accidents.”

He added that the police had been raiding identified black spots along the corridor. He urged members of the pubic to assist the security agencies with useful information. “Motorists should ensure their vehicles are also in good condition so that they don’t break down in bad spots where miscreants can gain access to them.

“We have recommended that the construction company currently rehabilitating the expressway should consider installing streetlights in order to improve security and ensure the safety of motorists, especially at night. The FRSC is also working with sister organisations to improve patrols on the road in order to curb security breaches during and after completion of rehabilitation of the corridor,” he added.

Reacting, Public Relations Officer of the Ogun State Traffic Compliance Enforcement Agency, Babatunde Akinbiyi, said the agency was trying its best to address the challenges facing motorists on the expressway. He noted that officials of the agency operated on three shifts every day. “However, the Nigerian Army and police are now more visible on the expressway than ever. They are also cooperating with other security and safety agencies. Moreso, there is a diversion on the route and all agencies have been mobilised to ensure safety of road users,” he said.

The Sector Head of Operations, FRSC, Lagos State, Mr Matthew Zango, said efforts were being made to address the gridlock on the Lagos-Ibadan Expressway. “When vehicles break down at night, we use equipment belonging to Julius Berger Plc to remove them. The Lagos State Emergency Management Agency also comes to our aid,” he added.

Also, the Area Commander, Ojodu/Berger, Lagos State Traffic Management Authority, Mr Jubril Oshodi, said that since the reconstruction of the expressway commenced, he had not received any report that motorists were attacked on the road, adding that soldiers had been on frequent patrols.

The Ogun State Police Public Relations Officer, Abimbola Oyeyemi, said he would call back, but he had yet to do so as of the time of filing this report.

The Commissioner of Transportation in Lagos State, Dr Fredrick Oladehinde, said the state government would ensure completion of the ongoing reconstruction of the road in record time to reduce the hardship faced by commuters and motorists.

“We will do our best to ensure that it is finished by December. We advise commuters and motorists to be patient with us. The government is trying to expand the road to create more space and get traffic moving. We want people to be patient so we could conclude and everything will return to normal,” he said.

SOURCE (abridged): https://punchng.com/imprisoned-by-lagos-ibadan-expressway-gridlock-motorists-forced-to-live-with-insecurity/

Most African countries have vast mineral resources, a rapidly growing population that is increasingly well-educated, and have been the recipients of a huge amount of development aid. Why then do most of them continue to be amongst the most poverty-stricken places in the World?

The evolutionary origins of all mankind may be in a tiny area in the rift valley of modern-day Kenya, but the World has been tough on its common homeland. This is partly because of the way Africa rules itself, but primarily because it suits the key global economic players to let Africa eat itself.

1. FAILURE OF DEMOCRACY
Nowhere in Africa enjoys democratic rule, other than the offshore state of Mauritius. There is generally the merest appearance of democratic institutions and perpetual rigged elections. Behind every regime is a stronger Asian or western one pulling the strings.

2. CORRUPTION
Corruption would not exist on such a grand scale unless it was being fed by outside interests propping up incompetent politicians who serve themselves instead of their people.

3. FRAGILE HEALTH INFRASTRUCTURE
Although billions of dollars have been spent on responding to epidemics over countless decades, sustainable institutions offering first-rate medical treatment have not been established – except in very isolated cases. We have to question whether the World is letting ebola, malaria and HIV plague Africa for a purpose?

4. ECONOMIC EXPLOITATION
With the possible exception of Botswana, the great wealth of Africa’s minerals, forests and other vast riches have generally been carved up, appropriated by states and sold for a song. Why did Africa’s population let this happen?

5. WAR AND EXTREMISM
The easy way to keep a people suppressed is to give them war and keep them poisoned by extreme and intolerant views. All major powers outside Africa supply arms, and both Russia and Iran do so with the most venomous intent. Will the Horn of Africa ever be allowed to recover economically or politically – and why is Djibouti an exception in its midst?

6. RIVALRIES AND DYSFUNCTIONAL GOVERNMENTS
Africa is a place fraught with heated emotions where there should be consensus, and pettiness where there should be magnanimity. Could it be that this is still the bitter legacy of western colonialism working its way through successive generations after such prolonged past mistreatment?

7. PENAL LAWS, WEAK LAW ENFORCEMENT AND SOCIETAL ATTITUDES
Most African states have legal structures, but they lack modernisation. It is not just a question about the “rule of law” – as many laws are simply outmoded. Capital and corporal punishment often still exist, discrimination against those with certain tribal ethnicities is common and a deep intolerance against those who do not fit a particular cultural or societal mould is still rife. Hence the demonization of albinos in east Africa and the criminalisation of homosexuality across much of the continent.

8. POOR INVESTMENT IN PRODUCTIVE INFRASTRUCTURE
Although there is sufficient investment to achieve mineral extraction, deforestation, oil production and banking (to serve those ends), it does not stretch to wider areas of manufacturing production and high tech services. Where are the centres of excellence for Sub-Saharan African R&?

According to Robin-Chater, Secretary-General of the Federation of International Employers (FedEE) and former advisor on equal opportunities to the European Commission,

“At the heart of this problem lies the huge Dinosaur of racial hatred. Beyond all other factors, Africa suffers from widespread collective racially-based prejudice aimed against it from outside and also eating it from within. The World has not grown up to comprehend that the colour of someone’s skin neither defines their virtue as a human being, nor their innate intelligence. Until that changes, then the fate of Africa will be in the hands of those who wish to plunder it and the peoples driven out by such callous actions rejected in a desperate attempt to escape to our shores. Meanwhile we, the indifferent majority, endorse this barbarity by simply turning our backs.”

This piece was written by the Federation of International Employers (FedEE), a leading corporate membership organisation for multinational companies. It was founded in 1998, with financial assistance from the European Commission. Today it is an independent body with corporate members all around the globe.

SOURCE: https://businesspost.ng/2019/09/30/why-is-africa-poor/amp/

After weeks of sustained border closure, latest reports have shown that Nigerians are now patronizing Made-in-Nigeria rice and other locally produced food items instead of the imported ones.

Also, the latest Household Survey carried out by Nairametrics Research team shows a massive increase in prices of major imported household items across Lagos markets. It was learnt that while the price of local rice rose due to increased demand, there was a big jump in the prices of imported rice.

For instance, Items such as locally made rice increased by 13% from an average of N16,000 to N19,000, while foreign-made rice recorded a huge 35% increase in price, from a previous average of N18,875 to N25,500. Also, a bag of brown beans (50kg) which sold earlier for an average of N13,500 now sells for N17,250, indicating a 28% increase in price.

This report reflects items that increased in price, those items that decreased in price, special markets and general insights.

ITEMS THAT WITNESSED PRICE INCREASE
Price of locally made (50kg) rice increased from an average N16,000 to N18,000, indicating 13% increase.

According to reports, foreign rice is scarce in the market, due to the partial border closure imposed by the Federal Government. Foreign rice is now sold for an average of N25,500, indicating a significant 35% increase. Also, a bag of white beans increased by 2% from N20,500 to N21,000, while a bag of brown beans (50kg) increased by 28% to an average of N17,250. A bag of 50kg yellow garri now sells for an average of N5,250, representing 8% increase in price.

ITEMS WITH REDUCTION IN PRICES
A bag of 50kg beans (Oloyin) reduced by 1% from an average of N13,875 to N13,750. Also, a 50kg bag of white Garri reduced by 13% from and an average of N5,900 to N5,125. Locally made palm oil also reduced in price. 5 litres locally made palm oil now sells for an average N1,850, compared to N2,000 two weeks ago. A 25-litre gallon of locally made palm oil that was sold for N10,700 two weeks ago now sells for an average of N9,500.

A 5 litre gallon of locally made groundnut oil reduced by 15% from previous N2,325 to N1,975, while a 25-litre gallon also reduced by 3% from an initial average of N10,875 to N10,500. Lastly, a big basket of round shaped tomatoes now sells for N8,000 from an earlier N14,000, representing a 43% decrease in price, while a big basket of oval-shaped tomatoes reduced by 22% from an initial N9,000 to N7,000.

SPECIAL ITEMS/MARKETS
Sellers of tomatoes at Mile 12 market enlightened Nairametrics research team that the red round shaped tomatoes are imported from Ghana and popularly referred to as "Ghana tomatoes", while oval shaped tomatoes are grown and harvested in the Northern part of Nigeria.

It was also discovered that the price of onions increased at Mile 12 market, as a big bag of dry onions now sells for N18,000, compared to N16,000 two weeks ago. Meanwhile, a big bag of new onions sells for N13,000 from previous N11,000. The increase was attributed to limited quantity of onions available in the market (North), as there is high demand for the commodity across the country.

MARKET INSIGHTS
The Nairametrics Research Team interviewed traders of various commodities across the various markets and recorded reactions with respect to the current market situation.

Sellers of rice across the major markets disclosed their dissatisfaction towards persistent rise in prices of foreign and locally made rice due to border closure and high demand of locally made rice. A rice seller called John disclosed that he had just one bag of foreign rice remaining in his store and he planned to keep it until it would be worth as much as N30,000 in the market, which is likely to happen soon, according to him.

However, John called on the government to help boost local production of rice in the country so as to meet the high demand for the commodity.

A seller of frozen foods disclosed that she has stopped selling because most consumers have opted for purchase of live chickens in place of the regular frozen chickens and turkeys.

ABOUT NAIRAMETRICS FOOD PRICE SURVEY
Nairametrics Food Price Watch is a bi-weekly household market survey that covers prices of major food items, with emphasis on 4 major markets in Lagos – Mushin Market, Daleko Market, Oyingbo Market and Mile 12.

SOURCE (abridged): https://nairametrics.com/2019/09/30/household-survey-nigerians-dump-imported-rice-others-as-prices-jump-high/

Optimists are less likely to have heart problems and die prematurely, according to scientists. Researchers found an unexplained link between a positive attitude and good physical health, having looked at 15 existing studies examining the correlation between optimism, cardiovascular disease and the overall risk of dying.

A total of 229,391 participants ranging from 19 to 93 took part in the studies, which measured their levels of optimism and pessimism, and also collated information on their health and their cause of death if applicable. Published between 2001 and 2017, eight of the studies were conducted in the U.S., five in Europe, one in Israel, and one in Australia.

Participants with a glass-half-full outlook on life were less likely to have a cardiovascular event, like a heart attack or stroke, and had a lower chance of dying prematurely. The authors of the paper, published in the journal JAMA Network Open, said scientists should look for the underlying link between optimism and a longer, healthier life.

Negative emotions, as well as stress, depression and anxiety, and factors like loneliness have previously been linked to poor heart health. This, the authors believe, could explain the link. In 1988, study co-author Dr. Alan Rozanski, a cardiologist at Mount Sinai St. Luke's, and his team team published a study showing "merely talking" about personal stress can trigger abnormalities in heart function in patients with advanced heart disease.

For years, Rozanski told Newsweek, scientists in the field have focused on how negative factors like depression, loneliness and chronic stress affect an individual's physical health, but in recent years they have turned their attention to the role of positive psychological factors like optimism.

Emerging evidence suggests positivity could lower the risk of other chronic illnesses and "perhaps even dementia," said Rozanski. This trait could therefore be used as a tool in preventative medicine. Research suggests that optimists are more likely to follow healthy habits, but also reap direct biological benefits, whereas pessimism appears to spur biological damage, Rozanski said. However, he said more research is needed to confirm this.

Asked whether optimism is something we are "born with" or a trait which we can learn and improve upon, Rozanski said the trait has been shown to be around 25 percent genetic, but also influenced by factors including upbringing, social influences and life experiences. Regardless, he said, we can indeed change and improve our mindsets, including by learning coping skills

Exercising the "muscle" of positive thought generation, starting by dwelling on things to be grateful for, also boosts optimism, as do tools learned from cognitive behavioral therapy—a common psychological treatment for conditions such as anxiety and depression.

OPTIMISM LINKED TO LIVING LONGER
In August, a separate study spanning five decades found optimists are more likely to reach their 85th birthday and beyond. That study, published in the journal PNAS, linked the trait to living 11 to 15% longer, on average, and achieving what is known as "exceptional longevity." Lewina Lee, assistant professor of psychiatry at Boston University School of Medicine, was among its authors.

Lee told Newsweek the work by Rozanski and his colleagues is important, but pointed out the studies examined consisted of predominantly white participants from the U.S. and Europe. This should encourage others to look at whether the findings hold up in more diverse populations, she said. "It would be interesting to consider the extent to which the constructs of optimism and pessimism are universal across cultures.

Miriam A. Mosing, assistant professor of the departments of neuroscience and medical epidemiology and biostatistics at Sweden's Karolinska Institutet, told Newsweek the study "lends further support to the notion that there are associations between personality traits and health-related outcomes."

But she added the "question remains whether the association is indeed causal and whether optimism can be learned or changed."

SOURCE: https://www.newsweek.com/optimists-live-longer-less-likely-have-heart-problems-1461252

20,000 Wallets Were Left Around the World to Test People's Honesty. The Results Will Restore Your Faith in Humanity

Scientists who handed in almost 20,000 "lost" wallets around the world to test the honesty of members of the public found people are more likely to give back wallets stuffed with cash than when they are empty. Experts say the findings question the idea that people are self-interested and dishonest. The teams based in the U.S. and Switzerland wanted to look at the concept of civic honesty, which they say is "essential" for society to function and for economic development, but is at odds with what some see as our innate instinct to be selfish.

The study published in the journal Science saw researchers return transparent business card cases to an unwitting staff member at the counter of public places including banks, cultural centers like museums, post offices, hotels, and police stations. Different amounts of money were placed in the wallets. Researchers then waited to see if the person would contact the fake owner, to test if they would be tempted to steal the money. If the researchers didn't get a response sent to an email address set up for the wallet owner in 100 days, they assumed it was a goner.

In each country, around 400 experiments took place in the five to eight largest cities. A total of 17,003 wallets were placed in 355 cities in 40 countries around the world. Either no money, or the equivalent of $13.45 adjusted according to the purchasing power of the country, was left in the cases. A key, business cards and a grocery list written in the local language were included to signal the owner could easily be contacted and appeared to live locally.

In 38 out of 40 countries, participants were overwhelmingly more likely to try to return the wallet to its owner when it contained money than when it was empty. People in Mexico and Peru were less likely to return a wallet with money than without. In 98% of the cases, the money, not just the wallet, was given back. The likelihood of the case being returned rose from 40% when it didn't contain money to 51% when it did.

The displays of honesty could be explained because the amount of money included wasn't enough to prompt nefarious behavior, the authors suggested. To investigate this, the team ran another study in the U.S., U.K. and Poland where the amount of money in some wallets was upped to $94.15. To the surprise of the researchers, the rate of people giving back the wallets was 46 percent without money; 61 percent with $13.45; and 72 percent when $94.15 was left behind.

The researchers also looked at whether the presence of other individuals when the wallet was handed in made a difference to levels of honest behavior, as well as security cameras in the building (and in the U.S., lost property laws.) They found these didn't make a significant difference to how people acted. And when the researchers asked the participants if they wanted a finders fee, they didn't expect a reward larger than the money in the wallet.

Past studies have suggested that people are less likely to be honest the bigger the material incentive, and will be dishonest if they think they won't get caught and risk damaging their reputation. But most research into honest behavior has been done in a lab setting, and focuses on participants from Western, educated, industrialized, rich and democratic societies, the authors explained.

The researchers believe the participants gave back the wallets because they didn't want to feel like a thief. In nationally representative surveys in the U.S., U.K. and Poland, the researchers asked respondents to rate whether keeping the empty wallet, money filled and most-money filled wallet would make them feel like they were stealing. The more money in the wallet, the more they'd feel like thieves, the respondents said.

A separate survey of 299 people carried out by the researchers asked whether respondents could predict whether a wallet would be returned if it contained no, some, or a lot of money. Most thought the wallet containing the $94 wouldn't be returned, but the empty wallet would. And a survey of 279 economists came to the same conclusion.

David Tannenbaum, co-author of the study and assistant professor of the management department at the University of Utah, told Newsweek the experiment-side of the study spanned July 2013 to December 2016, and the researchers encountered some bumps along the road.

"There were many challenges," he said. "One challenge was simply bringing research materials into the countries. For example, how can you pass customs with a suitcase full of keys and wallets? We also had to deal with unforeseen circumstances like natural disasters (e.g. flooding in India) and of course make sure our research assistants were safe."

"We also had to deal with the residual fear and anxiety from recent acts of terrorism. For example, while we were conducting the experiment in Kenya the terrorist attacks in Paris happened, and one of our experimenters was arrested and interrogated by the military police for suspicious activity."

But the hard work was worth it.

"When we initially started this project we assumed that people would naturally be less likely to return a wallet when it had more money inside," he said. "We were surprised when we found the opposite. And the fact this finding is remarkably consistent across countries was even more of a surprise."

"[The] higher material benefits of dishonesty also increase the psychological costs of the dishonest act, and these psychological costs can dominate the material interest to behave dishonestly," explained Tannenbaum.

Addressing the results in Peru and Mexico, he explained: "We don't know why Peru and Mexico look different. One thing to note is that the decrease in reporting rates for both countries is not statistically significant, meaning that the size of the decrease is not distinguishable from what you might expect due to chance alone. In other words, the decrease could just be random noise."

Like all studies, the work was limited, said Tannenbaum, as this type of study isn't as controlled as a lab experiment, but the methods are robust enough to shed a light on attitudes towards honesty.
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On Amir, professor of marketing at the University of California, San Diego who has researched dishonest behavior and was not involved in the paper told Newsweek people expected the worst of the participants because they "entertain the view of humans as self-interested via immediate economic outcomes, and fail to take into account that people also manage their own view of themselves."

"This is important because it means that in order to improve society, instead of relying on threat and punishment, we can educate and promote moral standards and that would carry significant positive effect for all. That even an empty wallet was returned more than half of the times, strengthened the optimist in me," said Amir.

"This study underscores the notion that people are in general quite honest, a notion that seems to be eroding in our society these days. In addition, it supports the notion that people are very much governed by their learnt internal moral standards. So rather than invest in more oversight and enforcement, we should invest in education of values."

Shaul Shalvi, associate professor in the Center for Research in Experimental Economics and Political Decision making and at the Psychology Department at the University of Amsterdam told Newsweek he too was surprised by the results: "In the age of fake news, when facts matter less than opinions – there are a few things more important than studying human honesty in my mind."

Shalvi, who has researched morality, said it would be interesting for future work to test whether the same response would be seen in wallets owned by tourists or immigrants.

He said: "We know from years of research in psychology and economics that people are parochial—they are more likely to help, cooperate and trust people from their in-group than out-group members. This is why it's unclear if the levels of civic honesty observed in the current work will be achieved if the wallet's owner is not from the same group the person who is considering whether to return the wallet belongs to."

SOURCE: https://www.newsweek.com/20000-wallets-left-world-test-people-honesty-results-restore-faith-humanity-1444761