Summary of the top business, economic and political news in Nigeria today.
- The European Union (EU) Ambassador to Nigeria and ECOWAS, Mr Michel Arrion says EU will not increase its financial assistance to Nigeria. Link
- The Lagos State Government on Thursday said it had appointed a consortium of seven insurance companies to manage losses that cooperative societies in the state might incur. Link
- The Managing Director of Nigerian Ports Authority (NPA), Ms Hadiza Usman, says some terminals, including that of Ikorodu, will be designated for non-oil exports. She said that necessary facilities would be in place to drive exportation of solid minerals and agricultural produce through the seaports. Link
- Oil prices, which dropped below Nigeria’s 2017 budget benchmark price of $44.50 per barrel, hovering around $43/barrel in the past two weeks, yesterday rose significantly across all grades and markets. Link
- Nigeria’s foreign exchange reserve stood at $30.25 billion by June 28, down 0.36 percent from a month ago, central bank data showed on Friday(today). The reserves showed a 14.8 percent rise from a year ago, when they stood at $26.34 billion. Link
- Former President Olusegun Obasanjo on Thursday called on the leaders of the Economic Community of West African States (ECOWAS) to agree on common currency to boost the regional trade. He said that the issue of common currency was getting delayed because the regional leaders had put forward “ECO” as a name for the currency but wondered why it had not been adopted. Link
- The Acting President, Yemi Osinbajo, has approved the appointment of 14 new Resident Electoral Commissioners, RECs, for the Independent National Electoral Commission, INEC. Link
- The World Bank has committed a total of $215m to the execution of rural community development projects across the country under its Community and Social Development Programme. Link
- The National Executive Council (NEC) Thursday extended the lifespan of the federal government’s financial support to various states of the federation, to cushion the biting effects of the recession. Link
- The National Union of Air Transport Employees has said that it will picket the Nigerian Civil Aviation Authority next week if the agency fails to accede to the demands of its members for promotion. Describing the last promotion as unwholesome and unacceptable, the union said many suitably qualified members of staff of the NCAA were not promoted in spite of the fact that they qualified to be invited for the exercise, took and passed the relevant examinations and met other ancillary criteria. Link
- Former Governor of the Central Bank of Nigeria, CBN Professor Chukwuma Soludo, yesterday, said that Nigeria’s economy will be ahead of France and the United Kingdom, UK, by 2050 if the country gets its acts together. Link
- Nigerian insurance sector has recorded N380 billion for the year 2016 as against N311 billion approximately underwritten in 2015, according to report released yesterday at the Nigerian Usurers Association’s 46th Annual General Meeting (AGM). Link
- There are indications that Nigerian airlines might be losing as much as N20 billion to bird strike annually, as the frequency of such incidents has increased over the years without efforts to curtail them by concerned authorities. Link
- Mananging Director/ CEO, Guaranty Trust Bank Plc, Mr. Segun Agbaje, has stated that Nigeria’s economy may be in a difficult period, but with digitalization at the core of the national banking strategy, financial inclusion has been given room to grow. Link
- The Nigerian Civil Aviation Authority (NCAA) has issued the first Remotely Piloted Aircraft/Drones (RPAS) Operators Certificate (ROC) to Oando Plc. Link
- Arik Air, Nigeria’s largest carrier, says it will resume daily flight operations between Abuja and Accra, Ghana on July 17. Link
- The Nigerian Handling Company Plc (nahco aviance) said it has started handling Ethiopia Airlines in Kano. The company said with the recent commencement of the passenger and ramp handling of Ethiopia in Kano, it has now made a complete haul of ET’s passenger services and ramp handling in Nigeria. Link
- The desire of airline operators to have Maintenance, Repair and Overhaul (MRO) facility in Nigeria, is gradually becoming a reality. In the next six weeks, Nigeria’s oldest airline, Aero Contractors would start C-check maintenance of Boeing classics, Boeing B737-300, B737-400 and B737-500 in addition to Bombardier Dash 400 and helicopters. Link
- MTN Nigeria has launched the Bus Shelter Kiosks initiative aimed at empowering unemployed youths in Lagos. The company said the initiative was meant to also create a conducive environment for commuters in the state. Link
- Over 700 youths are set to be employed as the Stanel Group ultra-modern mega gas plant in Awka, Anambra state is set for inauguration, CEO of Stanel Oil, Stanley Uzochukwu has announced. Link
- The management of Eko Electricity Distribution Company Plc (EKEDC) said on Friday that it had provided meters to the 6,834 Maximum Demand (MD) customers within its network, as directed by the Nigerian Electricity Regulatory Commission (NERC). Link
- The Metallurgical Stakeholders Forum has called on the Federal Government to cancel reconcession of the National Iron Ore Mining Company (NIOMCO) to Global Infrastructure Holding Ltd. (GIHL), an India company. Link
- PwC Nigeria has announced the admission of six professionals into its partnership, effective July 1, 2017. The new partners are Jide Adeola, Chidi Ojechi and Dele Oladipo of the firm’s Assurance practice, while Moshood Olajide, Kenneth Erikume and Chijioke Uwaegbute were admitted into the Tax and Regulatory services practice. Link
- The Presidency has dismissed insinuations that the federal government is spending £4000 daily to park the presidential aircraft in London. The senior special assistant on media to the president,Garba Shehu said, “We have also read claims about outrageous fees allegedly paid by Nigeria. The published amounts are totally untrue. Aircraft conveying heads of state all over the world usually enjoy waivers even where payments for parking are differentiated by aircraft categories. “We have been assured that where the waiver is not granted, payment will not exceed £1,000, which is a quarter of the amount being peddled. Link
- The Ebonyi Government says it will spend N1.8billion to boost primary health care under the Save One Million Lives Programme for Result Initiative of the Federal Government. Link
MTN shareholders have made approximately N1 trillion since April 2020
Shareholders of MTN Nigeria gained close to a trillion naira in less than 7 months.
MTN Nigeria shareholders have gained N986.58 billion since the first trading session in April 2020.
This was uncovered by calculating the difference in the telecommunication giant’s market capitalization of ₦1.832 trillion at the open of trade, for the first trading session in the month of April 2020, and the market capitalization of ₦2.646 trillion at the close of trade in the first trading session in the month of October.
This gives a whopping N814 billion increase in market capitalization, and this with the dividend the company has paid to shareholders on two occasions between this time period, brings the total gains both realized and unrealized to approximately N1 trillion.
Hence, the N814 billion increase in market capitalization translates to the joint gains MTN investors have made from the increase in the shares of the company, as the share price of the company has increased by 44.44% or ₦40.00 between April 1, 2020, and October 2, 2020, with the share price of increasing from ₦90.00 to ₦130.00.
However, the gains MTN NG investors have made from their investments in the telecommunication company, is not limited to the gains driven by the increase in the price of the shares.
Recall that the company declared payment of dividends to its shareholders on two occasions, as investors/shareholders of the company, whose names appear in the Register of Members, as of the close of business on April 17, 2020 and August 14, 2020 were paid a cumulative dividend per share of ₦8.47, for all the outstanding shares of 20,354,513,050 held by the shareholders, and this translates to a total dividend payout of N171 billion by the company to its shareholders.
It is noteworthy that the realized and unrealized gains MTN investors have made from holding the shares over this period stands at N986.58 billion.
LASACO Assurance Plc Chairman, Aderinola Disu resigns from the Board of Directors
Aderinola Disu resigned her position as a Director on the Board of LASACO Assurance.
Lasaco Assurance Plc has announced the resignation of its former Chairman, Mrs. Aderinola Disu, as a Director on the Board. The resignation took effect from the 8th of September, 2020.
The following information is contained in a press release made available to the public, signed by the company Secretary, Gertrude Olutekunbi, and verified by Nairametrics.
The notification also revealed that, the aforementioned firm has received a provisional approval from the National Insurance Commission (NAICOM) to appoint two other directors.
The two newly appointed directors are; Dr (Mrs.) Maria Olateju Phillips, and Prince Jamiu Adio Saka, both appointed to a Non-Executive Director role.
Profile of the two newly appointed Directors
Chief (Mrs.) Teju Phillips, is a successful Chartered Accountant, who holds an ACCA from England and Wales. She is multilingual and has extensive experience in Management/Consultancy services, that spans across many years in both the public and private sectors. She has served as a Director in Keystone Bank; Director, Lagos State Lottery Board; Honorable Commissioner for Special Duties & Inter-Governmental Relations in Lagos State; Managing Director of Alma Beach Estate Ltd (a subsidiary of Rims Merchant Bank Ltd); Managing Director, Maridot Ventures Ltd. among others.
Prince Jamiu Adio Saka, is an accomplished Insurance professional, having practiced in Canada and Nigeria. He brings to the board over 30 years of experience as a Broker.
Lasaco Assurance Plc, is a listed Nigerian firm that provides life and general insurance services, which includes motor, bond, contractors-all-risk, fire, burglary, aviation, marine, general accident, life, pension schemes, engineering, and oil and gas. The company has a market capitalization of about N2.05 billion and it share price currently trades at N0.28 kobo.
MTN: Data subscriptions triggered surge in Q2 2020 Revenues
Data revenues jumped from N56.7 billion to N79.9 billion in the period under review.
Analysis of the MTN’s results shows that revenues surged, due to increased data usage, aided by the COVID-19 pandemic lockdown.
MTN Nigeria Communications Plc (MTN), reported revenues of N638.1 billion in H1 2020, relative to N566.9 billion recorded in the same period in 2019 – a 12.5% increase.
MTN Plc is Nigeria’s premier provider of connectivity, communication, and collaboration solutions. From the very first phone call, made at Maritime House Apapa, Lagos, Nigeria on May 16th, 2001, MTN Plc has been facilitating connections in Nigeria.
The COVID-19 related lockdown affected businesses worldwide, including businesses in Nigeria. This resulted in most business activities being conducted virtually, in a bid to salvage businesses from collapsing. With social distancing rule, came an increased utilization of online mediums for meetings, weddings, social interactions, and everything that couldn’t be done physically. Consequently, people consumed more data compared with the pre-COVID-19 periods.
According to the latest data available on the NCC website, MTN Plc’s market share of internet subscribers is 42.54%. Its revenue-generating segments include Voice, Data, SMS, Interconnect and Roaming, Handset and Accessories, Digital, Value Added Service, and Other revenues. Aside from SMS, revenues from the other seven segments increased in H1 2020 compared with the previous period last year.
Data revenues jumped from N56.7 billion to N79.9 billion in the period under review. The number of port-out subscribers almost doubles port-in subscribers in the period under consideration, so this does not confound the analysis conducted, which revealed that COVID-19 lockdown boosted data revenues.
The Earnings Per Share (EPS) of the company declined by 4.70% in H1 2020 from N4.89 to N4.66 compared with the same period last year. A 4.68% decline in distributable profit to N94.88 billion in H1 2020, relative to N99.54 billion contributed to this decline in H1 2019.
MTN Plc’s shares were listed on the floor of the NSE on 16th May 2019. The shares currently trade at N129 per unit. The highest price for a unit of share in 52 weeks was N132 and the lowest N90. A total of 51,885,740 units was sold in the last seven days trades. Shares outstanding is 20,354,513,050 units and its market capitalization is N2.63 trillion.
Airtel Africa Plc operates in the same sub-sector as MTN Nigeria Plc – Telecommunications Services. Airtel Africa Plc’s share price is N380. The highest price for a unit of share in 52 weeks was N380 and the lowest N298.90. A total of 15,972 units was sold in the last seven days trades. Shares outstanding is 3,758,151,504 units and its market capitalization is N1,428,097.57 trillion.
On the 30th of September 2020, Telecompaper reported that MTN has added MusicTime playlists to its Ayoba app. MTN’s Ayoba platform and MusicTime announced a partnership deal to bring free music to Ayoba app users. MusicTime in Ayoba is now live in Nigeria and some other African countries, including South Africa and Ghana. The app offers users free access to ten playlists with twenty songs each.
Ayoba is an instant messaging app powered by MTN. With Ayoba, it is possible to chat with anyone, regardless of whether they have the Ayoba app or not. Users who do not have the app, but receive an SMS from an Ayoba user, will be able to respond via SMS, and it will display within the Ayoba user’s chat in the app. Ayoba is available on Android devices (iOS to come later).