₦airaland Forum

Declares 25 kobo dividend per 50 kobo share Business fundamentals strengthened despite Covid-19 impact

March 18, 2021: Union Bank has released its audited financial statements for the year ended 31st December 2020. The Bank’s results for the period show sustained growth in key income lines and significantly improved fundamentals notwithstanding a constrained operating environment largely due to the impact of the Covid-19 pandemic.

Union Bank’s investments in technology and building a progressive work culture over the past eight years enabled a swift response to the pandemic that allowed our workforce to transition to remote working while maintaining the productivity required to deliver this strong set of results in 2020.

Bank Financial Highlights:

- Profit before tax: up 2.8% to N25.4bn (N24.7bn in FY 2019).

- Profit After-tax: up 1.2% to N24.7bn (N24.4bn in FY 2019).

- Gross earnings: down 1.9% to N156.9bn (N159.9bn in FY 2019).

- Net operating income after impairments: up 8.3% to N103.4bn (N95.5bn in FY 2019).

- Net interest income before impairment: up 10.1% to N56.9bn (N51.7bn in FY 2019) due to reduced interest expenses.

- Non-interest income: up 1.6% to N44bn (N43.3bn in 2019) driven by growth in net trading income as well as revaluation gains.

- Operating expenses: up 10% to N78bn (N70.8bn in FY 2019) due to an increase in regulatory and technology expenses.

- Gross loans: up 23.8% to N736.7bn (N595.3bn in FY 2019) driven by targeted lending to key sectors of the economy.

- Customer deposits: up 27.6% to N1,131.1bn (N886.3bn in FY 2019) reflecting our agility in delivering a compelling range of products to our customers during the pandemic and increased adoption of our digital channels.

- Non-performing loans ratio: down to 4% from 5.8% (FY 2019) driven by a disciplined recoveries strategy (N7.2bn in 2020), a more robust loan book and key restructurings to support customers during the pandemic.

Key Operational Highlights:

Channels: Active users on our digital platforms grew 1.3x. During the year, we added new features such as end-to-end account opening and enhanced card services including home delivery of cards boosting revenues from digital channels by 1.5x.

Agent Network Expansion: We expanded our UnionDirect network to over 18,000, representing a 6x increase. Transaction volume and value grew 10x and 12x respectively delivering 14x revenue growth.

Enhanced Retail and Digital Offerings: We relaunched UnionVibe, UnionLegend and UnionInfinity, a suite of products targeting the key youth and teen demographic; and disbursed over N9.4bn loans with new credit propositions.

Systems Upgrade – We upgraded our core systems to support our growth aspirations while strengthening the performance, reliability, security and
processing capacity of our platforms. With this upgrade, we are now in a position to process at least 10x the volume of transactions for 2020.
Funding: We secured both local and foreign currency funding to support growth across our priority areas. Union Bank raised:

―₦35bn commercial paper issuance. The 180 and 270-day notes were oversubscribed, reaffirming market confidence in our brand

―$200m 10-year funding from U.S International Development Finance Corporation (DFC)

―$75m Pandemic Trade Mitigation funding from Afrexim

―$30m working capital funding from IFC

―Employees: The Bank was the first in the industry to implement remote working for its employees in March 2020. With over 70% of our workforce operating remotely at the height of the pandemic, we introduced resources to maintain and enhance the physical and mental health of our colleagues.

―Customers: We deepened our engagement via digital platforms and reinforced our channels to enable self-service. Supported by the Central Bank, we also offered restructuring of loan terms for businesses affected by the outbreak of Covid-19 in key sectors of the economy. At our branches, heightened hygiene & social distancing guidelines were put in place.

―Community: We donated over ₦350m towards the fight against Covid-19. These included donations to the Private Sector Coalition against Covid-19 (CACOVID); 54gene to support testing and research, working with the Nigeria Centre for Disease Control (NCDC); and the Lagos State COVID-19 Emergency Food Response programme to support families affected by the pandemic.

―Business continuity: Operationally, the bank adapted as lockdowns and movement restrictions evolved during the year. We designed a working model that ensured operational efficiency while maintaining adequate contingencies that guaranteed business continuity should newly identify operational risks crystallize.

―Managing liquidity and credit risks: We focused on raising long term liabilities in local and foreign currencies. We also deepened our focus on essential sectors during the pandemic and enhanced portfolio diversity. With the ongoing review of our credit portfolio and stress testing, we focused on

COVID-19 Response: The impact of COVID-19 in 2020 cannot be understated. In response, the Bank constituted a CEO-led task force in February and adopted a proactive approach to ensure the health and safety of key stakeholders and to mitigate the negative impact on our business.

UBUK Update: In January 2020, Union Bank announced its divestment from its UK subsidiary to focus solely on Nigeria and the distinct long-term opportunities that the market presents. In Q4 2020, we obtained a “no-objection” clearance by the Central Bank of Nigeria and the divestment is ongoing.

Dividend Payment: For the second year running, the Bank is proposing a dividend payment and returning value to shareholders. Union Bank’s ability to deliver a strong performance in the face of an economically debilitating pandemic speaks to the resilience and long-term fundamentals of the Bank. Subject to shareholders’ approval, a dividend of 25 kobo per 50 kobo share is being proposed.

Management Update: In December 2020, the Bank’s Chief Executive Officer, Emeka Emuwa announced his retirement effective March 31, 2021. Following a successful search process, the Board has appointed Emeka Okonkwo, an Executive Director currently leading the Bank’s Corporate Banking business, to succeed him. Emeka Emuwa served as CEO for eight years and led the Bank’s transformation and repositioning as a key player in the Nigerian financial space. Promoting asset quality with solid risk management structures while leveraging CBN’s forbearance opportunities.

Brand & Citizenship: Through our initiatives, we impacted over 3 million people in 2020. We continued our support for the education sector impacting teachers, students and parents, through our Edu360 platform; deepened our investments in women/girl empowerment initiatives via vocational, digital and leadership training; continued our social innovation drive, and supported community development via the “gift of water” and supply of food to the underprivileged.

Key partnerships in this area in 2020 include MamaMoni, Pearls Africa, Awarri, LEAP Africa, Cece Yara Foundation, Junior Achievement Nigeria, GiveFood.ng Initiative, etc.

Commenting on the results, Emeka Emuwa, CEO said:

“The Bank has delivered a strong set of results notwithstanding the impact of COVID-19 on our operations and the wider economy, enabling the Board of Directors to continue to return value to shareholders with a proposed dividend payment for the second year in a row. This demonstrates the strong foundations we have built, as we continue to deliver against our target of becoming a leading financial institution in Nigeria.

For the full year, we grew across key income lines. Net income after impairments grew 8.3% from ₦95.5bn to ₦103.4bn and translated into 2.8% growth in Profit Before Tax to ₦25.4bn from ₦24.7bn.

The core of this performance is driven by the growth in our loan book, with a 23.8% increase in gross loans, to ₦736.7bn from ₦595.3bn in 2019.

The pandemic accelerated trends in customer behaviour and we have seen a rapid increase in digital adoption with a 38% YOY increase in active users on our UnionMobile channel with total active users now at 2.9 million. Our UnionOne and Union360 platforms for businesses grew by 11% from 25,000 users to 27,700 users. 94% of transactions in the Bank are now done digitally, up from 89% in 2019.

We also aggressively grew UnionDirect (our agent network) by 6x from 3,100 to 18,100 in line with our focus on our retail business. With our investments yielding positive results, we are well-positioned as a strong leader in the retail and digital space.

In 2021, the Bank will focus on enhancing revenues and shareholder value by revving up customer acquisition, engagement and transactions through seamless customer journeys and an optimized service delivery platform.

As I retire following eight years of rebuilding and repositioning this storied institution, I am convinced that with the excellent management team and a clear strategy in place, Union Bank is well-positioned to continue to compete and deliver value to its shareholders.

Speaking on the FY 2020 numbers, Chief Financial Officer, Joe Mbulu said:

“We are pleased with both our top and bottom-line performance in 2020, in light of the impact of the pandemic and economic challenges. Significant inflationary pressures and the translation of currency depreciation drove growth in our cost base, however, we maintained strong control, limiting operating expense increase to 10% (₦77.9bn from ₦70.8bn), well below the rate of inflation. Consequently, we saw a marginal increase in our cost to income ratio to 75.4% from 74.1%.

Our customer deposits hit a milestone during the year, crossing the ₦1tr mark to ₦1,131.1bn from ₦886.3bn in FY 2019, an increase of 27.1%. Low-cost deposits were up by 17%, constituting 68% of total deposits helping to push the cost of funds down by 1.4%.

We continued to proactively manage our growing risk asset portfolio and recorded better asset quality, with our NPL ratio improving from 5.8% to 4.0%. This achievement, combined with solid capital adequacy at 17.5% and continued top-line growth, provides the platform for strong growth going forward.

We will continue to grow our loan portfolio in 2021, which we expect to be a significant driver of growth, combined with our value chain synergies across our business which will drive customer and transaction growth during the year and beyond.

Our UBUK subsidiary remains classified as “Available for Sale” as the sale process continues albeit delayed due to the pandemic-induced lockdowns”

Ikeja Electric will continue to condemn attacks on its employees in strong terms. While we understand that sentiments regarding utility services can be quite emotive, we maintain that wanton attacks on our staff are completely irrational, irresponsible and unproductive, especially where Ikeja Electric has provided multiple channels through which our customers can lodge formal complaints with respect to our services.

Where responses from these channels are deemed unsatisfactory, the Nigerian Electricity Regulatory Commission has also set up a robust forum office for the redress of customer complaints.

In the interest of the safety of our employees and for a harmonious relationship with our customers, Ikeja Electric will continue the deliberate engagement of all stakeholders in flashpoint areas to find ways to amicably resolve all pertinent issues of concern to its customers and communities.

However, where these attacks persist, Ikeja Electric Plc, in line with her obligation to provide service under a conducive atmosphere to its customers, will as a matter of course, continue to escalate such matters to law enforcement agencies and will promptly withdraw its services from communities and customers that prove too hostile to operate in.

We wish to therefore urge all stakeholders, community leaders, leaders of youth groups and all persons of interest to remain mindful of these matters and adopt a more civil approach to engagements as all parties are deserving of reciprocal respect and regard as espoused by all laws.

While there may be concerns and disputes arising from time to time, we remain committed to finding long-lasting peaceful resolutions in the equitable interests of all parties.

Guaranty Trust Bank (GTBank) Plc has released its Audited Financial Results for the year ended December 31, 2020, to the Nigerian and London Stock Exchanges.

A review of the result by Brand Spur Nigeria shows improved performance across all key financial metrics in the face of the unprecedented challenges brought on by the COVID-19 pandemic, reflecting the quality of past decisions and reaffirming its position as one of the best managed financial institutions in Africa.

The Group reported Profit before tax of ₦238.1billion, representing a growth of 2.8% over ₦231.7billion recorded in the corresponding year ended December 2019. The Group’s Loan book (Net) grew by 10.7% from ₦1.502trillion recorded as of December 2019 to ₦1.663trillion in December 2020, while Customers’ deposits increased by 38.6% from ₦2.533trillion in December 2019 to ₦3.509trillion in December 2020.

Guaranty Trust Bank’s Balance sheet remained well structured, diversified and resilient with Total assets and Shareholders’ Funds closing at ₦4.945trillion and ₦814.4billion respectively.

Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9%, while Asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.4% (Bank: 5.9%) and 1.2% (Bank: 1.0%) in December 2020 from 6.5% (Bank: 6.2%) and 0.3% (Bank: 0.2%) in December 2019 respectively.

Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said;

“2020 was arguably the most challenging year that the world has faced in decades. In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate.

We were on solid footing going into 2020; the strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”

He further stated that;

“Amidst the many challenges that persist, we remain ardent believers in Africa’s growth potential. Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering people and uplifting our communities.

With our commitment to deepening customer relationships and intense focus on delivering innovative financial solutions, we enter 2021 well-positioned to lead this new world.”

Guaranty Trust Bank plc continues to post the best metrics in the Nigerian Banking industry in terms of all Financial Ratios i.e. Post-Tax Return on Equity (ROAE) of 26.8%, Post-Tax Return on Assets (ROAA) of 4.6%, Full Impact Capital Adequacy Ratio (CAR) of 21.9% and Cost to Income ratio of 38.2%.

Renowned for its forward-thinking approach to financial services and customer engagement, GTBank was recently ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent survey and ranking of the Top 100 admired brands in Africa.

The Bank was also awarded the Best Bank in Nigeria by Euromoney Magazine for a record-extending tenth time and the Euromoney Excellence in Leadership Africa Award for its swift reaction in responding to the Covid-19 crisis and for addressing the impact of the pandemic on its customers and communities.

A total of 204,601,313 subscribers were active on voice as against 205,252,058 in Q3 2020. This represented a -0.32% decrease in voice subscriptions Quarter-on-Quarter.

The National Bureau of Statistics (NBS) disclosed this in its latest Telecoms data for Q4 2020 report released on Thursday.

Similarly, a total of 154,301,195 subscribers were active on the internet as against 151,512,122 in Q3 2020. This represented a 1.84% growth in internet subscriptions QoQ.

Further Breakdown:

- Lagos State has the highest number of subscribers in terms of active voice per State in Q4 2020 and is closely followed by Kano and Ogun States

- Bayelsa and Ebonyi States have the least number of subscribers.

- Lagos State has the highest number of subscribers in terms of active internet per State in Q4 2020 and is closely followed by Kano and Ogun States respectively

- Bayelsa and Ebonyi States have the least number of subscribers.

Also, the report stated that "MTN has the highest share of subscriptions. This is closely followed by AIRTEL, GLO, and EMTS (Etisalat) respectively."

Fatgbems Petroleum, one of Nigeria’s largest indigenous petroleum products marketing companies has announced that it has completed technical checks on its IBB Abeokuta retail outlet which was affected by floods due to the heavy downpour witnessed in Abeokuta over the weekend.

This was contained in a second update to the public on the incident which saw fuel storage tanks flooded with water at the outlet.

Speaking on the incident, Mr. Shina Soleji, Group Sales Manager, Fatgbems Petroleum, while responding to questions from journalists, said that whilst the unfortunate incident has posed certain regrettable inconveniences on the outlet’s customers, the company had taken immediate remedial actions to fix the issues and had taken the extra step of involving the Department of Petroleum Resources and the Federal Competition and Consumer Protection Commission for spot assessment, the residual products at the station is being evacuated, storage tanks/product pipelines leak and pressure testing are set to be conducted within the next couple of days before it is reopened for business again.

“This retail outlet is one of the most popular in the area due to its strategic location serving locals as well as interstate travellers. We are eager to reopen but in our culture of safety first, our technical team worked round-the-clock to resolve the issue and measures have been put in place to prevent a reoccurrence. We remain committed to exceptional service delivery”, he added.

Soleji, who was in the company of other Senior Management staff displayed clean product dispensed from the pumps to re-assure customers.

The company also disclosed that the 10 customers whose cars were affected before the issue was detected have all been contacted, 9 of the vehicles were tuned-up and refuelled at its other retail stations in Abeokuta, and the company has also intensified efforts to monitor the said vehicles for quality assurance and possible reimbursement of the additional cost of repair incurred on the vehicles in the event of further breakdown.

He however said that the owner of the 10th vehicle was lodged in a hotel on the day of the incident and later transported via an executive cab to his location in Lagos. Rescue and Recovery Team were contacted in tolling the said vehicle to Skymit Motors Limited Service Centre located in Maryland, Lagos for repairs.

Consequently, he stated that the issue affected only the mentioned Abeokuta outlet as other locations of the company still continue to sell top quality products that the company has been known for.

Also speaking, a customer. Solomon Oyedokun, said that the Fatgbems brand is known for excellent service delivery and the quality of its products has never for once been compromised. “I believe this was an isolated incident and we can’t wait for the fuel station to reopen. Their service is super and we do not normally have issues here like in other filling stations around.”Fatgbems Petroleum had initially released a statement in the aftermath of the incident where the detailed steps are taken to remedy the issue.

MTN Nigeria Ends 2020 with 76.5 Million Subscribers; Data Revenue Rises by 51.2% to N332.37 Billion

MTN Nigeria Communications Plc (MTN Nigeria) announces its audited for the financial year ended 31 December 2020. MTN Nigeria’s mobile subscriber base grew 19% year-on-year and stood at 76.5 million with active data users increased by 7.4 million to 32.6 million (up by 29.4%).

In the year, according to the financial statements of the firm released to the Nigerian Stock Exchange (NSE) and analysed by Brand Spur, the sum of N1.346 trillion was generated in the year, higher than the N1.169 trillion achieved in 2019, an increase of 15.1%.

MTN Nigeria's profit after tax grew 0.9% to N205 billion while the Profit before tax (PBT) also grew by 2.6% to N298.9 billion.

Key metrics:

- Mobile subscribers increased by 12.2 million to 76.5 million
- Active data users increased by 7.4 million to 32.6 million
- e-Service revenue increased by 14.7% to NGN1.3 trillion
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 9.7% to N685.7 billion
- Net Assets N178.3b +22:3%
- Market Cap - N3.4 trillion +61.8%
- EBITDA margin declined by 2.5 percentage points (pp) to 50.9%
- Earnings per share (EPS) rose by 0.9% to N10.1
- A proposed final dividend of N5.90 kobo per share (Total including interim N9.4).

Unless otherwise stated, financial and non-financial information is year-on-year (YoY, full-year 2020 versus 2019)

MTN Nigeria CEO, Ferdi Moolman comments:

"2020 was a challenging year for all The unprecedented disruption that the COVID-19 pandemic caused the businesses and people we serve, challenged us in new and demanding ways.

The impact continuss to evotve. Adoption of our data and digital services accelerated as lockdowns and gathering restrictions were imposed and work-from-home became the norm for many.

Our thoughts and prayers are with those who have lost loved ones due to the pandemic the toll on lives and livelihoods globally have been profound. To date, Nigeria has recorded 155,417 confirmed COVID-19 cases and 1,905 related deaths, according to the Nigeria Centre for Disease Control (NCDC). MTN Nigeria has also been directly

impacted by the pandemic, with 62 employees diagnosed with COVID-19 and 46 recoveries. Sadly, one of our employees succumbed fo the virus.

Our employees adapted quickly to working remotely to ensure that our customers remained connected. I am incredibly proud that we were able to meet the challenges faced in 2020, by pulling together, working closely with the government and our regulators, and understanding our customers evolving needs.

As we navigated the fallout of the pandemic, adopting our processes and structures to the new realities, we acted swiftly to support the national response ina holistic way. This was encapsulated in our Y'ello Hope Initiatives through which we provided support to our broad base of stakeholders to the value of approximately N25 billion

We provided free-to-access services (including SMS and data) to the most vulnerable, supported the acquisition of essential medical supplies (tests and personal protective equipment), and joined the Coalition Against COVID-19 CACOVID) that drove multiple initiatives, including building isolation centres across the country.

We also paid our taxes early in support of the government's ongoing efforts. In January 2021, MTN Group partnered with the African Union contributing US$25 million to their COVID-19 vaccination programme. MTN Nigeria Is pleased to play its part in this initiative, through which Nigeria will receive 1.4 million vaccine doses for the benefit of health workers.

in addition, we committed marketing resources to our #WearltForMe campaign to help create awareness around wearing masks, and our REVV support programme for Micro, Small and Medium Enterprises (MSME) helped them navigate the new digital reality.

Our performance demonstrated strong operational execution and resilience in our business. We connected 12.2 million new customers to our network bringing our total subscriptions to 76.5 million.

The introduction of additional customer registration requirements and suspension of the sale and activation of new SIMs towards the end of the year affected subscriber growth. We remain committed to ensuring our subscriber records are updated with the National identity Number (NIN) and continue working closely with the government, supporting their efforts by expanding capacity to provide NIN enrolment services across our customer interaction touchpoints.

Active data users increased by 7.4 million to 32.6 million, supported by growth In gross connections and the expansion of our4G network. Our mobile money (MoMo) business also continued to accelerate with @ 269.2% increase in my number of registered agents to over 395,000 and 4.7 million active subscribers from approximately 553,000 in 2019.

Service revenue grew by 14.7% in line with our medium-term targets, driven mainly by voice and data revenue. Voice revenue grow was 5.9% and although this was subdued in G2 due to COVID-19 induced restrictions, we saw a pickup in momentum into Data revenue rose by 51.2%, with increased data usage and traffic.

To accommodate this and enhance service quality, we focused on capacity upgrades and 4G population coverage, while expanding our investments in rural connectivity. Our 4G network now covers 60.1% of the population, up from 43.8% in 2019.

EBITDA rose by 9.7%, supported by service revenue growth. However, the EBITDA margin declined by 2.5pp fo 50.9%. This was mainly due to increased operating expenses, arising from the new rollout of new sites and the impact of Naira depreciation, affecting, in particular, the costs of our lease contracts.

Despite the increase in costs, we recorded an improvement in our bottom-line earnings, with profit before tax PBT) and profit after tax (PAT) increasing by 2.6% and 0.9% respectively.

In line with our dividend policy, the board has proposed a final dividend of N5.90 kobo per share to be paid out of distributable net income. This brings the total dividend for the year to N9.40 kobo per share, representing an increase of 18.7%.

I thank the Boord, Management, and staff of MTN Nigeria for the supports given to me and the opportunity to serve in Nigerian as I complete my tenure as CEO of MTN Nigeria and assume a new role as MTN Group Chief Risk Officer. Effective 1 March 2021, Karl Toriola will take over as the CEO. I wish Karl and his new team the very best."

Operational review

We made considerable progress in growing the base for our business, connecting 12.2 million new subscribers to access communication services, The growth in our subscriber base provided support for voice revenue, which accounted for 67.1% of service revenue and rose by 5.9% with an acceleration in growth to 8.9% YoY in H2, This was enabled by our expanded customer acquisition touchpoints, rural telephony initiatives and revamped acquisition offers.

The suspension of new SIM registration in mid-December did not have a significant impact on voice revenue as we saw an increased level of activity from the existing base.

Data revenue maintained the positive momentum from Q2, prompted by the COVIO19 lockdown, rising by 51.2%. The performance in data was led by a combination of increased subscribers, usage (MB per user) and ultimately traffic, supported by increased network capacity and 4G penetration.

Data traffic rose by 126.86 and average usage by 64.0%. We added approximately 8.2 million new smartphones to the network bringing smartphone penetration to 45.9% of our base, up from 41.9% in 2019.

Fintech revenue rose by 27.3%, boosted by MTN Xtratime, our airtime lending service. We expanded our MoMo agent network with the addition of over 280,000 registered agents during the year.

This was achieved os we continued to convert our traditional airtime agents in line with our one distribution model. Our fintech subscribers increased by more than eight times to 4.7 million, driving higher transaction volumes of over 51.5 million during the year and core fintech revenue growth of 28.0%.

The uptake of our digital business continued to gain traction with the revamp of our products and services, improved customer journey and increase in active user base. As a result, digital revenue recorded growth of 107.2%, entrenching the pleasing structural turnaround in the business.

In H1, we redefined how we account for the active user base to capture unique paid subscriptions, and we have seen this number grow by 75% to 2.8 million from 1.6 million In H1. This was driven mainly by subscriptions for ayoba, our instant messaging platform, which rose by 120.9% fo 1.4 million.

Enterprise revenue increased by 1.5%, supported by growth in revenue from devices and fixed connectivity. The economic impact of the COVID-19 lockdown, particularly in Q2, led to a decline in the uptake of our products and services by the businesses we support, We are, however, encouraged by the recovery that occurred in H2 as restrictions eased and economic activity began to improve We anticipate further uplift in enterprise revenue once the USSD pricing dispute is resolved and we recover outstanding fees from the banks.

Our enterprise business includes revenue from mobile and fixed connectivity, cloud and ICT solutions, and devices. It cuts across voice, data and digital services for SMEs, the public sector and large enterprise customers,

Capital expenditure (CAPEX) in the year was N298.6 billion, up 19.4%. Excluding right of use assets, CAPEX was up 15.2% to N240.1 billion. We accelerated site rollout in H2 following a slowdown in H1 due to foreign exchange paucity and port congestion, As a result, and In line with our guidance, we were able to increase our 4G population coverage to 60.1% with the delivery of 5,724 sites during the year, of which 74% are 4G sites

We expanded the scope of our service agreement with IHS Holding Limited QHS) and amended the currency conversion provision for tower services in view of the longterm benefits. This led to the movement of the reference rate for conversion to Naira From the CBN's official rate to the NAFEX rate.

We reviewed the treatment of nonrecoverable VAT on lease payments to account for it as an expense over the lease period, These, together with the effects of Naira depreciation, put upward pressure on lease rental costs In the period in addition to these, the combined effect of the 2.Spp increase in value-added tax (VAT) and COVID-19-related costs led to a 27.2% increase in operating expenses with a knock-on effect on EBITOAmargin,

EBITDA rose by 9.7% and the EBITDA margin was 50.9%. We delivered a healthy free cash flow of N387.1 billion, up 3.2%. Depreciation and amortisation rose by 11.7% because of the exchange rate and VAT impacts, while net finance cost rose by 25.4% arising from higher borrowings and lower yields earned on our investments in government securities.

As a result, we recorded a PBT growth of 2.6% In H1, we issued N100 billion commercial paper, which was oversubscribed at a blended rate of 5.7% per annum. This allowed us to broaden our sources o.f funding and lower our overall cost of funding, which reduced by 3.3pp in 2020

PAT and EPS each rose by 0.9% reflecting an increase In taxation mainly due to lower investment allowance and exempt income,

COVID-19 and the impact on the business

The pandemic caused unprecedented disruption to businesses and impacted lives and livelihoods. Although the operating environment remains challenging, the easing of lockdown restrictions led to an improvement in economic activity and market conditions into H2.

Our response to the pandemic and its impact can be categorised into four broad areas, namely social, commercial, network and supply chain as welt os funding and liquidity considerations.

in terms of the social impact, we launched various Initiatives to provide support for our people, customers and the various levels of government as part of our YelloHope packages. We empowered our people to work remotely and implemented health measures and monitoring to ensure their safety and business continuity. We continue to provide welfare support to them through the MTN Global Staff Emergency Fund.

Outlook

The operating environment remains challenging and uncertain due to the effects of the pandemic, We remain focused on the safety and wellbeing of our staff, customers and broader stakeholders as well as mitigating supply chain challenges while safeguarding our financial and liquidity position.

While we continue to manage the attendant risks and support our stakeholders, however, we are also well placed to unlock the opportunities that have risen In the areas of financial inclusion along with the rising demand for connectivity and digitalisation We continue to refine our strategy to make our operating model Future-fit to adapt to a dynamic world for

In view of the new directive a SIM registration, our immediate priority is to protect our base by collaborating with NIMC to drive NIN enrolment and ensure that our customers’ records are updated with NINs.

We remain focused on our MoMo business given the important role it plays in driving financial inclusion in the country. We continue to engage with the CBN regarding obtaining a Payment Service Bank (PSB) licence, which would help to accelerate this ambition of broadening financial participation and inclusion.

In the meantime, we will continue to expand the agent network Mrough our one distribution model, broaden our service offerings and drive the overall contribution of our core fintech business to service revenue,

We will fast track 46 sites rollout to Further increase population coverage while continuing to expand rural coverage. Although the availability of foreign exchange remains a constraint, we strive to minimise its impact on the business. We will sustain our drive for cost management across the business and strengthen our operations and financial position to unlock efficiency and support margins.

Ogun State Tackles Maternal Mortality, Distribute Tricycle Ambulances To Primary Health Centres (Photos)

As part of efforts to improve the health indices of citizens as well as put an end to maternal deaths and other health emergencies, the Ogun Government has distributed 22 Tricycle to Primary Health Centres across the State.

Commissioner for Health, Dr. Tomi Coker at the distribution ceremony held at the Obas Complex, Oke Mosan, noted that the government identified that 70% of women who died during childbirth was as a result of lack of access to intervention which usually arises due to lack of transportation and access from PHCs to general hospitals, saying the introduction of the Tricycle Ambulances would put an end to future occurrences.

"We noticed in our mortality review that 70% of deaths that happened among our pregnant women happened because of lack of transportation from PHC to the general hospital when complications occur during childbirth.

To address these issues, His Excellency, Prince Dapo Abiodun took the innovative ideas of introducing Tricycle Ambulance to PHCs particularly in the rural areas where there is difficulty in road access." She said.

Also speaking, Commissioner for Budget and Planning, Mr Olaolu Olabimtan who noted that health was one of the three thematic areas of the Sustainable Development Goals (SDG), said that the distribution of the ambulances was facilitated principally by the state government with the support of development partners in the health sector through the office of the Senior Special Assistant to the President on SDG to address the issue of access to secondary health intervention, emphasising that it was the best possible solution to medical health emergencies, especially in the rural areas.

In his remark, Commissioner for Local Government and Chieftaincy Affairs, Hon. Afolabi Afuwape who said that the introduction of the Tricycle Ambulance was a good step in the right direction which would help tackle the issue of access to secondary and tertiary health intervention due to the terrain of the rural areas, enjoined health workers to use the ambulances for the purpose to which they were provided.

On his part, Commissioner for Finance and Chief Economic Adviser to the State Government, Mr. Dapo Okubadejo who emphasised that the event was to complement the efforts of the present administration aimed at providing qualitative health for all in the state appreciated Development Partners, Office of the Senior Special Assistant to the President on SDG, Eco Bank, Nigeria and the Majekodunmi Foundation for their support, urging others to join hands with the State Government in improving PHC service delivery.

Governor Udom Emmanuel who presented a Certificate of Occupancy of the proposed 30-hectare project site to the Chief of Air Staff, Air Vice Marshal Isiaka Amoo, Friday in Uyo, said the state was the best location for the establishment of the Air Traffic School.

The State Governor, who received the Air Marshal Amoo on a condolence visit over the demise of the former Airforce Chief, Air Marshal Nsikak Eduok, declared the readiness of the state government to strengthen its partnership with the Nigerian military.

Expatiating further on the state’s preparedness to partner with the Nigerian Airforce, he said the terminal building under construction in the state-owned airport upon completion will be unprecedented and that the state would soon complete an in-country Maintenance, Repair and Operations (MRO) facility that would offer such services without the need for foreign exchange.

“Our major gateways of development are at an advanced state.

“Our road network is one of the best in the whole country. Talk about air, our airport has an upgraded category two runway that can still take commercial flights even in bad weather, by the time we finish our terminal building, it will have no rival in Africa.

“Even our taxiway is built as a proper runway so it can serve anytime we want to resurface the main runway.

“So you can’t have an air training school anywhere in this country better than in Akwa Ibom.

“We have a lot in terms of infrastructure that we can partner.

“Our MRO will soon be ready, so flying your aircraft abroad for servicing will no more be fanciful.

“Pay us naira, use our facilities and you serve your foreign exchange”, he added.

He thanked President Muhammadu Buhari, for sending his condolences to the family of late Air Marshall Nsikak Eduok, and also used the occasion to condole with the families of the Airforce officers who lost their lives in the recent plane crash near the Abuja Airport.

Governor Emmanuel congratulated the new Airforce Chief on his elevation and prayed that his efforts in curbing insecurity in the various parts of the country yield results.

The governor commended the high standards and professionalism brought to bear in the administration of the Nigerian Airforce School in the state and expressed the hope that the standards would be sustained.

Governor Emmanuel called on the service chiefs to take advantage of the Akwa Ibom’s rapid development of the major gateways of aviation, seaport and expansive road network, as well as the luxury estates underway in the state, describing the state as the emerging destination for investment and tourism.

In an earlier remark, the Chief of the Air Staff, Air Vice Marshal Isiaka Amao, thanked the Governor for a warm reception accorded him, the logistics support given for the burial of late Air Marshall Nsikak Eduok and for the C of O allocating 30 hectares of land for the Air Traffic School in the state.

He assured the state government that the Nigerian Airforce will expedite action towards the establishment of the school.

As part of efforts to boost the processing and exportation of cashew nuts in Ogun State, the State government has revived its cashew processing plant at Imasayi by partnering with an indigenous agro-allied processing company, J22 Concerns Limited, Kajola.

The State Commissioner for Industry, Trade and Investment, Mrs. Kikelomo Longe represented by the Ministry's Permanent Secretary, Mr. Olu-Ola Aikulola who presented the letter of award to the Chief Executive Officer of the company, Mr.Yinka Akintola at the Palace of the Olu of Imasayi in Yewa North Local Government Area of the State, said the present administration decided to operationalise the plant which has been unused since 2018 to enhance the socio-economic development of the people.

Longe called on relevant stakeholders and the people of Imasayi to support the investor in enhancing the cashew nut value chain by increasing the production of cashew nuts and selling the same for processing instead of selling them raw.

The Chief Executive Officer, J22 Concerns Limited, Mr. Yinka Akintola said the company intends to process 500 kilograms of cashew nuts daily noting that the utilisation of the plant would create employment opportunities for indigenes of the area and bring about human capital development among the people.

The Akwa Ibom State Governor, Mr. Udom Emmanuel has announced the recruitment of 1,000 additional teachers into public primary schools in the State.

The Governor announced this during the inauguration of the new State Universal Basic Education Board on Friday, at the Exco Chambers, Government House, Uyo.

Governor Emmanuel emphasised that primary education is key to the development of any society and expressed confidence in the board members, urging them to live up to expectations of giving primary education a facelift in line with the Completion Agenda.

“A lot of people have heard that since last year we’ve been screaming that we are declaring a state of emergency in the education and we are not likely going to finish that in two years, it is something that will span through a minimum of 10 years but we must start the foundation this year.

“We have invested a whole lot in infrastructure and basic education is key, that is why if you check, the people we go after to head the primary board are people that can best represent us anywhere”, he assured.

The Chief Executive Officer of the state also commended the outgone Chairman of SUBEB, Prof. Maria Ikrok and her team for a job well done.

He charged the board to swing into action immediately.

“We have decided to add to you immediately another 1,000 primary school teachers”.

Emmanuel however solicited absolute loyalty from persons given responsibilities and frowned at treacherous activities.

“It is extremely disappointing to see people who are treacherous and whoever is treacherous can never go unpunished”.

Responding, the Chairman, State Universal Basic Education Board, SUBEB, Obong Paul Ekpo, expressed gratitude to God and the governor for finding him fit for the appointment, praying God to give the Governor the grace to finish strong.

He pledged to work hard and passionately to improve the primary education system.

“Let me thank God for the opportunity and also thank the Governor for finding me fit for this appointment.

“As the governor did mention, a state of emergency has been declared in the state education sector and we on behalf of our board pledge to be committed to making that critical contribution that will improve our educational system”.

The board members are, Obong Paul Ekpo – Chairman, Elder Godwin Enoidem – Member, Mr. Ekong Ambrose – Member, Mr. Iniobong Akpan – Member, Mr. Jonny Udoh – Member.

Nigeria's Gross Domestic Product (GDP) grew by 0.11%(year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters.

Though weak, positive growth reflects the gradual return of economic activities following the easing of restricted movements and limited local and international commercial activities in the preceding quarters.

As a result, while the Q4 2020 growth rate was lower than the growth rate recorded the previous year by -2.44% points, it was higher by 3.74% points compared to Q3 2020. On a quarter on quarter basis, real GDP growth was 9.68% indicating a second positive consecutive quarter on quarter real growth rate in 2020 after two negative quarters.

Overall, in 2020, the annual growth of real GDP was estimated at -1.92%, a decline of -4.20% points when compared to the 2.27% recorded in 2019.

In the quarter under review, aggregate GDP stood at N43,564,006.29 million in nominal terms. This performance is higher when compared to the fourth quarter of 2019 which recorded a GDP aggregate of N39,577,340.04 million, representing a year on year nominal growth rate of 10.07%.

This growth rate was lower relative to growth recorded in the fourth quarter of 2019 by -2.26% points but higher than the preceding quarter by 6.68% points with growth rates recorded at 12.34% and 3.39% respectively. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors. (Figure 1):

The Oil Sector

In the fourth quarter of 2020, average daily oil production of 1.56 million barrels per day (mbpd) was recorded. This was lower than the daily average production of 2.00mbpd recorded in the same quarter of 2019 by -0.44mbpd and the third quarter of 2020 by -0.11mbpd. (Figure2).

The real growth of the oil sector was -19.76%  (year-on-year) in Q4 2020 indicating a decrease by -26.12% points relative to the rate recorded in the corresponding quarter of 2019. Growth decreased by -5.87% points when compared to Q3 2020.

Quarter-on-quarter, the oil sector recorded a growth rate of -26.27% in Q4 2020.  For 2020, the oil sector grew at -8.89% compared to 4.59% in 2019. The oil sector contributed 5.87% to total real GDP in Q4 2020, down from the corresponding period of 2019 and the preceding quarter, where it contributed 7.32% and 8.73% respectively.

The Non-Oil Sector

The non-oil sector grew by 1.69% in real terms in Q4 2020, slower than the 2.26% recorded in the corresponding quarter of 2019, but better than the -2.51% growth rate recorded in the preceding quarter.

For the full year of 2020 however, the non-oil sector grew -1.25% compared to 2.06% in 2019. Growth in the sector was driven by Information and Communication (Telecommunications & Broadcasting).

Other drivers were Agriculture (Crop Production), Real Estate, Manufacturing (Food, Beverage & Tobacco), Mining and Quarrying (Quarrying and other Minerals), and Construction, accounting for positive GDP. In real terms, the Non-Oil sector contributed 94.13% to the nation's GDP in the fourth quarter of 2020, higher than the share recorded in the fourth quarter of 2019 (92.68%) and the third quarter of 2020 (91.27%).

For 2020, the Non-Oil sector contributed 91.84% to real GDP, higher than 91.22% recorded in 2019.