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Showing posts with label BUSINESS NEWS. Show all posts
Showing posts with label BUSINESS NEWS. Show all posts

Monday, 20 May 2019

May 20, 2019

SWINE FEVER SENDING PORK PRICES HIGHER



In a cruel irony in the Chinese Year of the Pig, outbreaks of African Swine Fever are forcing huge culls that could send pork prices to levels never seen before.
According to the UN’s Food and Agricultural Organization, pork prices “have begun to soar”, rising by up to 50 percent both in China and on the Chicago futures exchange.
In Europe, the rise has been 18 percent since the beginning of March as Japan and South Korea, two major importing nations, have started to build up reserves in cases of disruptions to supplies, according to commodities markets research firm Cyclope.
In France and Germany, pork prices have “risen by 30 percent since the start of year due to China,” said Jean-Paul Simier, an agricultural market analyst at French bank Credit Agricole who authored the meat section of the latest Cyclope annual report.
Home to nearly half of the world’s pigs, China is both the world’s largest consumer and producer of pork, which is a staple of its cuisine.
African Swine Fever, a virus that is not dangerous to humans but fatal to pigs and wild boar, began sweeping across China last year.
Chinese officials have said hundreds of thousands of pigs were culled in a bid to stop its spread — an effort that has also seen restrictions placed on moving pigs from affected areas.
Despite the measures, African Swine Fever continued to spread, eventually hitting China’s major pig farming area in Sichuan province.
Record prices? 
Cyclope said that since the start of the year 20 Chinese provinces have been hit, leading authorities to cull one million pigs, and removing them from the food chain.
It has continued to spread further, approaching the border with Laos in the south of the country and to the tropical island of Hainan, according to a map produced by the FAO.
Cambodia, Mongolia and Vietnam have also been hit, with nearly 100,000 pigs culled in the three countries.
The culls mean that China must now begin importing pork massively to compensate for lost production, said Jean-Paul Simier.
“China is the decisive market for pork, you need to understand that 700 million pigs live in China, compared to 20 million in France for example,” he said.
“The outbreak of African Swine Fever (ASF) in East Asia is likely to have a noticeable impact on meat and feed markets worldwide,” said the FAO in its latest semi-annual report on food markets that came out earlier this month.
It warned of “challenges to maintaining adequate meat supplies in affected countries,” saying that based on reports by government officials, industry sources and news media that the extent of the cull may have reached 20 percent of China’s pig herd.
Simier has a more conservative forecast of a drop in Chinese pork production of 10 percent this year, or nearly 6 million tonnes.
“That is already enormous because the international meat trade is only some 10 million tonnes per year,” he said.
“If the disease situation gets out of control, pork could hit prices never seen before,” he added.
While that is bad news for consumers, it means good business ahead for pig farmers in regions that haven’t been touched by African Swine Fever.
But farmers who raise feed grains for pigs, particularly soybeans, could be hurt by a drop in Chinese demand.

Sunday, 19 May 2019

May 19, 2019

INDOMIE KICKS-OFF SEARCH FOR 2019 HEROES AWARDS

Dufil Prima Foods Plc, makers of Indomie noodles has announced the kick-off of the 12th edition of Indomie Independence Day Award (IIDA) for heroes of Nigeria.

The award is geared towards the recognition of children who have against all odds, exhibited extraordinary acts of bravery and determination in the face of danger and societal challenges. Speaking at a national press conference in Lagos to kick-start the search exercise for the next set of heroes, the Chief Operating Officer, Dufil Prima Foods Plc, Mr. Girish Sharma said the declaration heralds the commencement of the field search and call for entry for the prestigious award for deserving Nigerian children. In his welcome address Mr. Girishnoted that the major objective of the award was to extol the exemplary accomplishments of children who have against all odds exhibited extraordinary acts of bravery, by identifying, recognizing and celebrating them publicly. Mr. Girish Sharma used the occasion to announce the readiness of Indomie to invest more in the initiative, adding that it was one of the ways to invest in the Nigerian child. He said: “We strongly believe in this initiative. This is one of the ways we sowinto the future of Nigeria because when you support the Nigerian child, you are invariably investing in the future of the country.” “Indomie Independence Day Award for Heroes of Nigeria has so far recorded huge successes in the last 11 editions producing a total of 39 winners whom were rewarded with scholarship prizes worth several millions of naira. This has impacted the lives of the awardees positively and we intend to scale further this edition.” Also speaking at the event, the Group Public Relations & Events Manager, Dufil Prima Foods Plc, Mr.Tope Ashiwaju stated that the last 11 editions of the awards have been tremendous, as they attracted commendations to the brand and the company by well-meaning individuals, captains of industries and corporate organizations, adding, “We are therefore encouraged to intensify our efforts towards a better and more impactful event.” Commenting on the award categories, Mr. Ashiwaju revealed that the award is divided into three categories: Physical, Social and Intellectual bravery categories. According to him, “The physical bravery category will acknowledge kids who at great personal risk, saved lives or by their actions prevent extensive damage to property or others; social bravery category will celebrate kids who work against social evils such as child marriage, illiteracy and environmental concerns in a sustained manner; while the intellectual bravery category will recognize children with innate ability that have performed remarkably despite physical, mental, emotional or financial limitations.” “As a national event, the award is expected to draw participants from all the six geo-political zones in the country in October.” You will recall that the 2018 edition of IIDA produced Master Victor Olayiwola, a 15-year-old boy from Lagos and whose story of heroism evoked emotions was adjudged the winner of the Physical Bravery category for saving his mother from a car accident, which later resulted to his left leg being amputated. Nine-year-old Master David Nengi Ayomide Pepple from Port Harcourt won the Social Bravery category for using his art talent to seek financial assistance for the treatment of his younger brother who had been diagnosed with cerebral palsy and Master Elijah Ephraim Umanah, a 13-year-old senior secondary student of Centenary Staff College in Uyo who won the Intellectual Bravery category for creating reading glasses with an inbuilt torchlight, solar panel and universal serial bus (USB) ports. IIDA is a national award event which commends the exemplary accomplishments of children who have shown courage and determination in situations that ordinarily would bring fear. The award also encourages excellence, rewards merit and stirs in other children the act of bravery.

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Thursday, 16 May 2019

May 16, 2019

WHY NIGERIA WANTS TO BORROW ANOTHER $1bn FROM CHINA



The Federal Government of Nigeria wants to borrow another loan from China to the tune of $1 billion. The loan facility is aimed at bankrolling the Gurara II Hydropower project. The decision was reached, yesterday, during the Federal Executive Council meeting, FEC.
According to President Muhammadu Buhari who led the session, the credit facility is to be provided by the China-Exim Bank. This will further increase Nigeria’s escalating debt profile by N360 billion.
As Nairametrics recently reported, the Debt Management Office disclosed in April that Nigeria’s total exposure as of December 2018 was N24.387 trillion. The figure was N21.7 trillion in the corresponding period in 2017.
More on the proposed investment: While communicating the Federal Government’s position, the Minister of Water Resources, Suleiman Adamu, stated that the investment would generate 360 megawatts of power upon completion. According to him;
“COUNCIL ALSO APPROVED N5.7 BILLION REVISED TOTAL ESTIMATED COST FOR THE COMPLETION OF NKARI DAM IN AKWA IBOM. COUNCIL ALSO APPROVED THE APPOINTMENT OF A CONSULTANT TO RESUSCITATE THE GARI IRRIGATION PROJECT IN KANO/JIGAWA STATES. COUNCIL HAD IN 2017 APPROVED FOR THE RESUMPTION OF THE PROJECT, WHICH WAS EARLIER ABANDONED FOR 17 YEARS.”
“THE CONSULTANT IS THE SAME APPOINTED IN 1998. THE CONTRACTORS ARE ALREADY ON THE SITE. COUNCIL ALSO APPROVED THE REVISED ESTIMATED TOTAL COST OF N10.4 BILLION FOR THE COMPLETION OF ILE-IFE DAM IN OSUN STATE. THE PROJECT WAS STARTED IN 2014 AND ABANDONED. THE COMPLETION PERIOD IS 24 MONTHS.”
Energy Ministry to benefit: Meanwhile, Babatunde Fashola, the Minister of Housing, Power, and Transportation, also mentioned that the sum of N11.208 billion was approved for the execution of projects under his ministry. One of these projects is the procurement of 200,217 metres by the Yola Electricity Distribution Company under the Meter Asset Providers Scheme.
“AS YOU MIGHT KNOW, YOLA ELECTRICITY DISTRIBUTION COMPANY IS THE DISCO THAT WAS SURRENDERED BY THE ORIGINAL HOLDER. SO, IT IS UNDER THE FEDERAL GOVERNMENT’S MANAGEMENT. SO, THEY ARE BUYING 200,217 METRES FOR CONSUMERS UNDER THEIR FRANCHISE, WHICH COVERS ADAMAWA, BORNO, TARABA AND YOBE STATES.
“THE COST OF THOSE METRES IS N11.208BN. IT IS TO BE FUNDED FROM THE JUDGMENT SUM THAT I PREVIOUSLY BRIEFED YOU ABOUT TWO YEARS AGO, THAT COUNCIL APPROVED A COMPROMISE FROM AN OLD METRE SUPPLY DISPUTE SINCE 2003.
“SO, THAT MONEY IS IN A BANK; THAT IS WHERE THESE METRES WILL BE FUNDED FROM AND AS CONSUMERS PAY BACK THE METRES AS THEY ARE SUPPLIED, THE MONEY GOES BACK INTO THAT ACCOUNT.” -FASHOLA
Furthermore, the Minister of Agriculture and Natural Resources, Chief Audu Ogbeh, while fielding questions from journalists, spoke about the approvals for the purchase of grains for storage.
“Everywhere in the world, silos are owned by the government into which they purchase grains at the end of harvest. The average is usually between two and three percent of all grains grown. In this case, we have got approval to buy 61,000 tons of maize, millet and sorghum and the purchasing will begin shortly.
“We also informed the council of the problem we have with Nigerian grains, especially maize, sesame seeds and groundnuts. An infestation called aflatoxin, which the Minister of Health confirmed, is a very big threat to the liver and the kidney of most consumers.
“Luckily, the International Institute of Tropical Agriculture has found a product which they produce in large quantities and send to Africa for treating the farms, the Silos and the sacks in which we put the grains to eliminate aflatoxin”, the minister told reporters.”
Mr. Ogbeh stated that the government still maintained its stance on domestically cultivated food for the populace, stressing that it has helped the government save about $21 billion on imports since 2015.

Wednesday, 15 May 2019

May 15, 2019

HOW TO BUY MTN SHARES ON THE NIGERIAN STOCK EXCHANGE



It’s official, Nigeria’s largest GSM Company, MTN Nigeria, will be listed on the Nigerian Stock Exchange on Thursday 16th of May 2019. As followers of the Nigerian Stock Exchange, we have waited for years for this to happen and we are glad to finally see this long-awaited announcement come alive.
What does this mean? By listing MTN on the Nigerian Stock Exchange, its shares can now be traded everyday by buyers and sellers. Until, now this was not possible as its shares were held privately by its investors. You could only previously buy and sell MTN shares in South Africa and until last year’s Ghana IPO.
Who can buy and sell MTN shares? MTN shares can only be bought or sold by retail and institutional investors who have a CSCS account and have an account from any registered stockbroker. You cannot buy MTN shares if you do not have a stock brokerage account from a stockbroker registered in Nigeria. To find a registered stockbroker just follow this link for the list of the top 10.
Why buy MTN shares? MTN Nigeria is a behemoth of a company reporting massive profits that run into over N160 billion. In its latest investor conference, it said that it reports a return on equity of about 90%. This means it makes a profit of N90 for every equity of N100 it investS. That’s unheard of for any quoted company in the country.
MTN also claims that to pays over 80% of its profits as dividends. It is also likely to list at N90 (and expected to climb as investors scramble for the shares), thereby placing it at a price-earnings multiple of 11x. It’s double-digit revenue and profit growth suggest this is actually a cheap price.
What price is great? Going by the numbers we have seen, MTN might be listed at N90 giving it a price-earnings ratio of 11x (we assumed an earnings per share of N8 based on profits of N160b). If you consider that MTN‘s price-earnings ratio has the potential to rise to as high as 30x, then the share price could easily be N240 by year end. MTN South Africa trades at 29x earnings per share, so this theory is far fetched. MTN could, therefore, be a good stock to buy for any price between N90 and N160 giving investors a good upside.
How do I buy MTN Shares? As stated above, you will need to have a stock brokerage account if you are to buy MTN shares. The shares will be listed on Thursday, which means investors (both retail and institutional) have a shot at buying. However, to buy means there must be a willing seller. Once you have a willing seller ready to accept your offer price, then you are sure to have a deal.
Quick steps to start;
  • Deposit money into your stock brokerage account
  • Instruct your stockbroker to buy for you at your determined price
  • You can also buy yourself if you operate an online trading account with the same stock brokerage account.
  • If you go through the online portal, you place your bid and hope that an offer is available for you at the right price and you have a deal.
  • You get an email from your stockbroker confirming that you now own shares in MTN
Upshots: We think MTN shares are going to be really scarce for now as investors who own it are private. They will only sell if they really need cash and if the price is right. MTN revealed its plans to have an IPO (Initial Public Offering) “soon” which will create new shares. This might be when a lot of Nigerians will get the opportunity to buy. Do not expect the price to be N90 by then.

Tuesday, 14 May 2019

May 14, 2019

MTN's N20.3bn SHARES TO START TRADING THIS WEEK



Nigeria’s telecom giant, MTN Nigeria, is set to be officially introduced on the Nigerian Stock Exchange come Thursday, May 16th, as all relevant processes have been completed.
Sources within the NSE and MTN reportedly disclosed that the telecom operator’s 20.3bn shares will, indeed, start trading this week. Some of the sources were quoted to have said the following:
‘’YES, I CAN CONFIRM THAT WE ARE LISTING THIS THURSDAY.’’– MTN SOURCE
“ALL I CAN SAY IS THAT NIGERIAN INVESTORS WILL START TRADING IN MTN SOMETIME THIS WEEK’’– NSE SOURCE
Nairametrics had earlier reported that the company successfully completed the registration of 20.345 billion ordinary shares of N0.02 each with the Securities and Exchange Commission(SEC). Also, commenting on the successful registration, MTN Nigeria‘s CEO, Ferdi Moolman, described the development as a milestone in the company’s listing process.
“I AM EXCITED WE HAVE ACHIEVED ANOTHER MILESTONE IN OUR LISTING PROCESS, AND WE WANT TO THANK THE SEC AND THE CORPORATE AFFAIRS COMMISSION (CAC) FOR SUPPORTING US THROUGH THE PROCESS. WE HAVE NOW BEGUN TO ENGAGE WITH THE NSE TO COMPLETE THE LISTING PROCESS.”-MOOLMAN
MTN’s Q1 report shows growth in revenue  – The news of MTN Nigeria‘s NSE debut is coming after the release of its first quarter 2019 report, which indicated that the company recorded steady growth during the period under review.
Specifically, the Q1 report shows that MTN Group‘s biggest market (i.e., MTN Nigeria),recorded a 13.4% increase in service revenue, year on year. Also, the subsidiary’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins also increased by 53.3%.
Upshots – Since the release of the Q1 report, investors have been eagerly anticipating the official commencement of MTN‘s shares trading. Basically, the announcement of steady growth in MTN Nigeria‘s revenue is expected to boost investors’ confidence to buy MTN’s shares with expectations of high dividends payable to shareholders. Similarly, stock brokerage firms should equally be on the line to earn significant fees from the volumes of trade this could provide.

May 14, 2019

BEFORE YOU GET 'LOOMIFIED' BEWARE OF THE LATEST PONZI SCHEME



Some Nigerians are ever so eager (if not desperate) to make money, regardless of whether it is through legal means or illegal means. This explains why quite a number of them fall prey to ponzi schemes.
Following the launch of the latest ponzi scheme in town called Loom Money Nigeria, many have thrown caution to the wind as they rush to partake, forgetting the recent drama and bitterness that accompanied the collapse of MMM.
What is Loom Money Nigeria? Loom Money Nigeria is the latest ponzi scheme in the country. Nairametrics understands that it is a peer-to-peer pyramid scheme that follows the same pattern as the now collapsed MMM.
How Loom Functions: The ‘Loom’ sits in a circle and every time a new person is recruited, others are pushed closer to the centre of the circle where they’re promised a payout.
There are four main levels in Loom which are: Purple, Blue, Orange, and Red. Immediately, eight persons joined the programme, the person in Red (centre) qualifies to get his target amount and and can leave. Afterwards, the Loom will split into top half and bottom half as the circle begins again.
Basically, the higher number of people you add to the Loom, the quicker the movement for you to withdraw your initial investment.
However, if people are unable to find investors and move closer to the centre of the circle, the last people to invest lose their money.
Below are the step-by-step procedures of Loom Money;
  1. You are invited/lured to join by either friends, relatives, colleagues, etc.
  2. You are then asked to invest either N1,000 or N13,000, with promises that you will earn eight times the initial amount when your circle is complete.
  3. After “investing”, you are then required to invite more people.
  4. You must be aware of the four steps earlier mentioned.
  5. The more people you add, the sooner you get to “cash out”.
Is Loom real? While people who are into this Ponzi scheme have proofs to show as evidence of payments to lure new people into this platform, it is pertinent to note that Loom Money Nigeria is not a sustainable investment, neither is it legal.
The Impending Doom: Practically, you pay to get involved in a Ponzi scheme. Loom Money Nigeria relies on “you” to recruit other people to join up and to part with their money just as you did.
In order for everyone in the scheme to make profits, the supply of new members is expected to be unending. Each Whatsapp group or other social media platforms is expected to be growing with new members to make the kind of moneyLoom Money Nigeria is promising.
Therefore, should some members fail to keep up with the commitments expected of them to get their expected returns, the amount of money coming into the scheme will ultimately dry up; causing people to lose their initial investments just as it was the case with MMM.
The Tragedy: Loom Money Nigeria is dangerous and the end result is expected to be tragic. This is because by inviting your friends and family members to join the platform in order for you to cash out, you are basically scamming them.
Essentially, you’re scamming your family and friends because it is your immediate circle that you are the Ponzi scheme onto — it’s basically like transferring money around to different people until the people at the bottom of the get eventually gets screwed.
Quick Reminders: A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Ponzi schemes typically deceives victims into believing that profits are coming from product sales or other means, as they remain unaware that other investors are the source of funds.
According to the Central Bank of Nigeria (CBN), despite the harsh economic climate, Nigerians, as at December 2016, threw about N12 billion away to Ponzi schemes such as the popular but now defunct MMM.

Monday, 13 May 2019

May 13, 2019

CBN DISPELS ALLEGED N500bn FRAUD INVOLVING EMEFIELE



The Central Bank Bank of NigeriaCBN, has issued a press statement in a bid to shut down a wide-spreading report which claimed that Governor Godwin Emefiele connived with one of his deputies and other top officials to steal billions of naira from the coffers of the apex bank.
According to the statement which was signed by CBN‘s Director of Corporate Communications, Mr Isaac Okafor, the media report is a false narrative which only seeks to deceive the public.
Note that while the CBN statement does not discredit the existence of the audio tape from which the controversial media report stem, it does insist that the conversation was intentionally misconstrued in order to achieve a “headline-grabbing narrative”.
“THE MANAGEMENT OF THE CENTRAL BANK OF NIGERIA (CBN) HAS BEEN NOTIFIED OF A PURPORTED AUDIO RECORDING OF SELECTIVE CONVERSATIONS AMONGST THE GOVERNOR, DEPUTY GOVERNOR AND SOME SENIOR OFFICIALS. CONTRARY TO THE HEADLINE-GRABBING NARRATIVE THAT THE DISCUSSION WAS ABOUT A FRAUDULENT TRANSACTION, THIS CONVERSATION – THE BEGINNINGS OF WHICH WAS OMITTED TO CREATE A DIFFERENT IMPRESSION – WAS SIMPLY TO PROFFER SOLUTIONS TO A MISUNDERSTANDING THAT AFFECTED THE BANK’S BALANCE SHEET.”
The Backstory: On Sunday, May 12th, 2019, Sahara Reporters published an exclusive on which reportedly exposed a N500 billion fraud committed by Governor Emefiele, his Deputy, Edward Lametek Adamu, and some other officials.
The publication contained an audio recording of a conference telephone conversation between Governor Emefiele and the others. At the beginning of the tape, as reported, the CBNGovernor’s hysterical voice could be heard asking the CBN Director for Finance, Dayo M. Arowosegbe the following:
“SO, CAN WE THINK OF ANYWHERE ACROSS BOTH ENDS WHERE WE CAN, YOU KNOW, PUSH THINGS OR EITHER MOVE THINGS FROM CAD OR OTHER PLACES, BRING IT BACK, YOU UNDERSTAND, OR DELAY? ANYTHING!”
That question set the tone for the alleged fraud, as reported by the above-named media organisation. Now, in all fairness, after listening to the entire audio, it is hard not to assume that something fishy had happened and the CBN big wigs were trying to either sort it out or cover it up, as the case may be.
Sahara Reporters believes that over N500 billion had been lost, stolen from the CBN in a private investment that went bust.
The CBN is denying this allegation, albeit vehemently: Contrary to the media report, the press statement from the Central Bank of Nigeriahas a different narrative about what was being discussed in the tape by Godwin Emefiele and the others.
The press statement recounted how, in 2015 following the global oil crash, the CBN was approached by the National Economic Management Team and the National Economic Council (NEC), to help State Governments with Conditional Budget Support. This is bearing in mind that the depreciating oil prices had affected FAAC allocations to states, thereby making it nearly impossible for some states to pay workers’ salaries.
The CBN responded by providing a N650 billion loan to 35, out of the 36 states in the Federation.
“IN ORDER TO ENSURE THAT ORDINARY NIGERIANS WORKERS GOT THEIR SALARIES, PENSIONS AND GRATUITIES, AND THAT THE ECONOMY CONTINUED TO RECOVER FROM RECESSION, THE BANK PROVIDED ABOUT N650 BILLION IN LOANS AT 9% WITH A TWO-YEAR GRACE PERIOD TO 35 STATES OF THE FEDERATION. THESE MONIES WERE DISTRIBUTED TO THE STATES MONTHLY WITH DOCUMENTED APPROVAL OF THE FEDERAL MINISTRY OF FINANCE AND THE PRESIDENCY.”
Three years later, an accounting error caused controversy: Fast-forward to 2018, external auditors classified about N150 billion of the CBN loan to states as bad loans. This is said to have “negatively affected the Bank’s Balance Sheet and shareholders fund.”
Now back to the “purported report” about missing billions: The CBN press statement, therefore, clarified that the leaked conference call between Governor Emefiele and his colleagues, was held in a desperate attempt to understand why the auditors categorised the loan as bad debt.
The statement went further to clarify that the misunderstanding was later rectified, thanks in part to the intervention of the Federal Ministry of Finance.
“THE BANK THEN REACHED OUT TO THE FEDERAL MINISTRY OF FINANCE AND THEY JOINTLY GAVE COMFORT TO THE AUDITORS WHO ACCEPTED IN WRITING THAT THESE MONIES WOULD BE REPAID. ON THIS BASIS, THE AUDITORS REVERSED THE NEGATIVE ENTRY AND THE CERTIFIED THAT THE CBN’S 2018 ACCOUNTS WERE A TRUE REFLECTION OF THE STATE OF AFFAIRS.”
No stolen/missing money? Having explained what happened, the apex bank is urging Nigerians to disregard the purported report about missing billions. The CBN claims that Governor Godwin Emefiele has always been an upright public leader who stands for transparency.
Now, while this CBN account may be true, many Nigerians are not yet convinced. Instead, they believe that something fishy had, indeed, happened. Perhaps, the CBN may need to be more careful in the administration of its affairs, so as to avoid another scandalous development such as this.

Sunday, 12 May 2019

May 12, 2019

FINANCIAL TECHNOLOGY IS DRIVING FINANCIAL INCLUSION



The rise in technology development, coupled with the growing need to create financial solutions that are capable of meeting current financial challenges, has birthed what has come to be referred to as Financial Technology (FinTech). It synthesises both the financial and technology sector.
According to Enhancing Financial Innovation and Access (EFInA), a financial sector development organisation that promotes financial inclusion in Nigeria, the percentage of those financially included (formally and informally) in Nigeria was about 63.3% (vs.60.3% in 2012).
Under the National Financial Inclusion Strategy (NFIS), the Central Bank of Nigeria has set out to increase this number to 80% by 2020. The apex bank has identified five gaps that, if tackled dedicatedly, will bring the country closer to its 80% financial inclusion target by 2020.
The CBN also noted that digital financial service has the potential to add about 46 million Nigerians into the formal financial system by 2025. Interestingly, most of the
lending fintech platforms are promoting financial inclusion.
Two years after commencing operations, Branch, one of the leading fintech lending platforms in Nigeria has recorded a milestone on loan disbursement. The firm announced that it had disbursed its 1 million the loan to bring its total lending to over N9bn in Nigeria, two years after commencing operation.
The online lending firm, which has shown a remarkable growth and increasing user adoption, currently has over 1.2 million users in Nigeria alone and is one of the most funded lending fintech platform in Africa after it raised $170m in series C financing in April led by Foundation Capital and Visa.
Financial technology companies like Renmoney, Page, Branch, Kwikmoney, and Carbon, etc are positively disrupting the lending industry as most of them offer quick, easy and cheap loans with no collateral. These firms offer up to N4m in loans after a few minutes of signing up on their platforms by utilising smartphone data including phone calls, text messages, BVN, etc. in determining the credit score of potential borrowers.
This has led to massive adoption by Nigerians ranging from small business owners, artisans and blue-collar workers who do not have sufficient credit history to take loans from banks to salary earners who need soft loans before payday to individuals who need urgent funds and are unwilling to go through the bureaucratic process traditional bank loans take.
As advancements in technology continues, we believe Fintech will revolutionize the banking and financial services delivery systems and help bring the country closer to its financial inclusion target.

May 12, 2019

WHAT EMEFIELE'S REAPPOINTMENT MEANS FOR NIGERIAN ECONOMY



Nigeria’s CBN Governor Godwin Emefiele has been nominated by President Buhari for a second term in office. The CBN Governor was appointed by former President Goodluck
Jonathan following the sack of Sanusi Lamido Sanusi the current Emir of Kano.
Significance – Emefiele’s appointment makes it the first time a CBN Governor will be running two terms in office since the advent of Democracy in 1999. Professor Soludo and HRH Sanusi Lamido Sanusi only spent a term each respectively.
Potential consequences – Emefiele’s appointment comes with its positives and negatives.
Positives
  • Stability in the banking system as he is likely to continue with his policies.
  • This also suggests banks won’t be rattled anytime soon except they perform woefully like the defunct Skye Bank
  • Continuing with the CBN developmental programs which will favour farmers and targeted SMEs.
  • Exchange rate stability as a strategy is likely to persist provides oil price remains flat. The CBN Governor is not ready to float the naira fully.
  • Policy implementation for FinTech will continue. The next four years might be the beginning of the end of brick and mortar banking.
  • Continues with the policy on the ban of forex allocation for 41 banned items. This will be good news for local industries benefitting from the bank.
Negatives
  • Just as some benefit from the banning of the 41 banned items, most will suffer from it. Industries that require raw material inputs included in the ban list will have to grapple with the obvious reality.
  • Importers of goods and services listed on as banned items will also continue to face the impact of lost revenues. The trade industry has been in recession since 2016
  • The Nigerian Stock Market is still reeling from the foreign investor apathy towards listed stocks. This is mainly because of the distrust they have for the management of the exchange rate.
  • Independence of the CBN might be further eroded during his tenure. Critics have often cited frequent interference by the executive branch on activities of the CBN.
What next: Once his nomination is confirmed, Mr Emefiele will resume his second term starting in July 2019 and serve till 2024. He would have also served at least 3 Presidents (GEJ, PMB and the winner of 2022 elections).

Saturday, 4 May 2019

May 04, 2019

MTN APPOIINTS SANUSI LAMIDO AS NON-EXECUTIVE DIRECTOR


Telecoms giant, MTN Nigeria, has appointed a former Central Bank of Nigeria (CBN) governor and current Emir of Kano, Sanusi Lamido Sanusi as a Non-Executive Director effective July 1, 2019.
According to report, the appointment of the former CBN Boss is part of MTN board roomshake-up at Africa’s biggest wireless carrier, which will also see the on-boarding of South Africa’s former deputy finance minister Mcebisi Jonas as a new group chairman.
Sanusi’s Appointment against the backdrop of MTN listing: The appointment of Lamido in Nigeria comes as MTN prepares to list its local unit on the Nigerian Stock Exchange (NSE), a condition reportedly as part of the settlement of a $1 billion regulatory action three years ago.
Sanusi was a banker and appointed the CBN Governor on 3rd June 2009 for a five-year term. He was appointed as Emir of Kano by the Kano State Government in 2014.
Prior, Sanusi was awarded the National Honour of Commander of the Order of the Niger (CON) by His Excellency, President Goodluck Jonathan.
Former South African deputy finance minister as Chairperson: Similarly, MTN group also announced that former South African deputy finance minister, Mcebisi Jonas, has been appointed its chairperson-designate. Jonas will assume the position of chair of the group on December 15, when the current chairperson Phuthuma Nhleko steps down.
“WE ARE PLEASED TO WELCOME ONTO THE BOARD LAMIDO SANUSI AND VINCENT RAGUE WITH EFFECT FROM 1 JULY 2019. LAMIDO SANUSI IS A NIGERIAN NATIONAL, THE EMIR OF KANO AND A FORMER GOVERNOR OF THE CENTRAL BANK OF NIGERIA.
VINCENT RAGUE IS A KENYAN NATIONAL WHO WORKED FOR THE INTERNATIONAL FINANCE CORPORATION FOR 24 YEARS IN A NUMBER OF SENIOR POSITIONS.”
MTN to establish international advisory: The telecoms provider said it would also establish an international advisory board made up of prominent persons of considerable and wide-ranging experience.
“THE ADVISORY BOARD WILL COUNSEL, GUIDE AND SUPPORT THE MTN GROUP IN ITS VISION OF GROWING ITS AFRICAN AND GLOBAL FOOTPRINT IN TELECOMMUNICATIONS AND INCREASING DIGITAL INCLUSION.”
Reasons for MTN Advisory Board: In recent years, MTN Group has reportedly experienced challenging regulatory environments and highly competitive trading conditions. The MTN Group board of directors has also managed the transition of senior management during this period. Hence, the Board is of the view that MTN Group has entered a more stable and settled phase, enabling it to now affect the evolution of the Board.
According to the telecoms giant, the Board resolved to establish an international advisory board (IAB) of prominent persons of considerable and wide-ranging experience.
The primary purpose of the IAB will be to counsel, guide and support the MTN Group from time to time in fulfilling its vision and objective of being one of the premier African corporations with a global footprint in telecommunications, contributing to increased digital inclusion in Africa and the Middle East.

Friday, 26 April 2019

April 26, 2019

5 HABITS OF NIGERIA'S BUSINESS BILLIONAIRES YOU SHOULD EMULATE


Billionaires inspire us to be great just as they are. However, they didn’t achieve success by mere luck. Instead, they got there by developing good habits which are powerful tools that can be used to reach certain goals in areas like health, fitness, money, relationships etc.
Inculcating the habits below will not guarantee you become a billionaire; however it will help you become more productive and successful in your life endeavours.
Below are some billionaire habits we can all develop:

1. They Wake up Early and Exercise

Nigerian billionaires make the best use of time by waking up early, thereby creating time for other priorities. Exercising is also part of the morning routine because that is when testosterone levels are high. It has other benefits such as strengthening the heart, and playing a major role in increased energy, positivity, and stress management.
Research shows that exercising early in the morning will help boost memory, concentration and mental sharpness – which are traits that can have a big influence on career and success.
Femi Otedola, in an interview with one of the national newspapers, said he wakes up around 6:30am every morning and heads to the gym for 1 hour.
Aliko Dangote wakes up before 5:30am and goes on a 10 kilometer run.

2. They Network/Politick/Follow Up

Nigerian billionaires know how to network. This gives them the opportunities to have exclusive rights to many things that are not offered to ordinary individuals; Speaking engagements, trips, best of meals, private and public events, and most importantly the ability to push their ideas forward by meeting the right people.
The truth is they are also good at politicking because they know that political leaders make policies that will affect their businesses. So, they get involved.

A brief look at some billionaires perspectives on networking

Jim Ovia: Place more value in who you know than what you have. The entrepreneur sees a potential ally in everyone. Establish your network 1 person at a time by being reliable and patient. Pave the way instead of burning bridges.
Tony Elumelu on his advice to youths on what worked for him said “Never take others for granted. Nurture your relationships. In the same way, as you start out in your career, build your relationships, seek to learn, don’t be afraid to understudy the experts, reach out to potential mentors and learn from them.”

3. They are Learners

Nigerian billionaires read a lot. They just don’t read for entertainment, they study trends, concepts and apply what they have learnt to become successful.
To show how much of a reader he is, Tony Elumelu, on World Book Day, recommended 5 books that have had a huge impact on his life.
They include –
  • Outliers by Malcom Gladwell,
  • The Creation of Wealth: The Tatas from 19th to 21st Century by R.M. Lala,
  • Think Big by Ben Carson,
  • Kane & Abel by Jeffrey Archer, and
  • Shall We Tell The President by Jeffrey Archer
What they watch also matters. Aliko Dangote spends his time watching a lot of business channels such as Bloomberg TV. Doing this gives him insightful information into global business.

4. They Diversify

Nigerian billionaires are experts at diversifying major things in their life. They diversify their sources of income/products, they diversify the countries they invest in, and they diversify the people they surround themselves with.
Mike Adenuga has investments in Oil, Telecoms, Real Estate, and Banking sectors.
Femi Otedola has investments in Oil, Shipping, Real Estate, amongst other sectors.

5. They surround themselves with Smart People

There is a saying “you are the average of the 5 people you spend most of your time with”. Nigerian billionaires surround themselves with the smartest people ranging from strategists, advisers, accountants, and fellow billionaires who they continually brainstorm with on ideas to keep expanding their frontiers.
Aliko Dangote once hosted his friends – Femi Otedola, Tunde Ayeni, Donald Duke, Segun Awolowo and Niyi Adebayo on his yacht to celebrate the Salah holidays.