Author: Jon Snow

Posted on January 19, 2017 by Jon Snow

Nigerian Banks Are Increasingly Worthless, Except On Paper

Nairametrics| Nigerian banks are worth more on papers these days.  The industry according to Nairametrics data, has a price to book ratio of roughly 0.8x. This means the market values the financial sector 20% less than its book value. In essence, Nigerian banks are not even worth anything close to their equity. For instance, Skye Read More

Posted on January 5, 2017 by Jon Snow

2017 Outlook: Presco Plc Is Too Hot To Ignore

The oil palm producers have benefited immensely from government policies, which explain why Presco Nigeria Plc has been on a growth spurt from 2015 through 2016. The company’s expansion plans carried out with a view to increasing its share of the market will bolster sales, lead to increased profit while contemporaneously magnifying shareholders earnings. Oil Read More

Posted on December 28, 2016 by Jon Snow

Nigeria’s Economic Slump Has Cost These 33 Firms A Combined N137 billion in Losses

Companies typically suffer cash flow challenges in times of economic recession. Top line revenues take a hit, profits often turn into losses, and expansion plans are scaled back further depressing any dividend expectation of shareholders or potential investors. A cursory analysis of select Nigerian companies highlights this exact situation. A conscious selection of a  group of Read More

Cross section of Nigerians
Posted on December 26, 2016 by Jon Snow

How Buharinomics, CBN Policies Threw 1.7 million Nigerians Out Of Jobs

The menacing economic recession has thrown 1.7 million Nigerians out of the labour markets. According to a recent report by the National Bureau of Statistics (NBS), the number of unemployed Nigerians rose from 9.48 million at the beginning of the year to 11.19 million by September ending. The report said the unemployment rate was highest Read More

Posted on December 21, 2016 by Jon Snow

Dollar Shortage Is Sales Boon For Flour Mills Nigeria

The dollar shortage hurting firms in Nigeria is ironically a boon for Flour Mills Nigeria plc. Sales in the country’s largest miller has gotten a major boost, thanks to increased patronage from buyers starved of the USD. Flour Mills, Nigeria’s largest miller by market value said the current economic fundamentals is forcing firms to source materials locally Read More

Posted on December 20, 2016 by Jon Snow

Xmas Sale: CBN Ask Banks To Submit Bid For Dollars On Behalf Of Their Customers

The central bank’s plans to clear the backlog of matured outstanding dollar obligation to select sectors of the economy can be considered as an Xmas gift in a time of recession.  Nigeria’s Apex bank instructed deposit money banks to submit backlog dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural Read More

Posted on December 16, 2016 by Jon Snow

Drug Stores In Nigeria Are Emptying As Dollar Scarcity Bites Hard

Consumer woes are mounting as price of drugs have risen astronomically on the back of dollar scarcity that has hindered suppliers from bringing in the products. Drugs are gradually disappearing from shelves and replenishing stock of inventories has become an uphill task thereby increasing the risk with falling ill in a country where medical services Read More

Posted on December 15, 2016 by Jon Snow

Nigeria’s Inflation Rate Tops 18.5% In November 2016

Nigeria’s inflation rate has accelerated for the 13th consecutive months as the economy of Africa’s most populous nation continues to grapple with lower oil price and shortages of dollars. Inflation for the month of November was 18.50 percent compared with 18.30 for the month of October. Inflation spiked on the back of higher price of Read More