Summary of the top business, economic and political news in Nigeria today.
- Nigeria’s gross domestic product (GDP) is projected to hit $595 billion in the next three years (2020), according to the latest Africa Investment Index 2016 released by Quantum Global Lab. Link
- The Nigeria equity market on Tuesday improved further by 0.66 per cent, just as the market capitalisation rose by N74 billion due to price growth by some blue chips. Link
- Construction work on the Lagos-Ibadan standard gauge rail has been suspended over right of way issues and a flyover bridge at Ijoko, Ogun State. The Minister of Transportation, Mr. Rotimi Amaechi, gave the indication on Monday, saying the height of the bridge would have to be raised for future electrification of the rail line. Link
- Nigeria and Libya may be asked to cap their crude oil output soon in an effort to help re-balance the market, the Kuwait Oil Minister, Issam Almarzooq, said on Wednesday. The two countries have boosted oil production since they were exempted from the global cuts led by the Organisation of Petroleum Exporting Countries and other producers. Link
- Power situation in the country saw a 24 percent improvement in June cumulatively, 69,800 megawatts, MW, were sent out as against 53,339MW sent out in May, daily operational report of the Nigerian Electricity System Operation, as shown. Link
- The Central Bank of Nigeria (CBN) has injected $142.5 million into the inter-bank foreign exchange, days after intervening in the retail segment of the market with $254.3 million. Link
- The Central Bank of Nigeria’s Investors and Exporters Foreign Exchange window has traded about $3.83bn since it was established on April 24, it has been learnt. Foreign exchange traders said this on Monday as the naira traded more strongly on the window than on the black market, Reuters reported. Link
- The Federal Government has said that it will ensure adequate insurance of its assets. The Minister of Finance, Mrs. Kemi Adeosun, said this during the National Insurance Conference of the Insurance Industry Consultative Council with the theme: ‘Nigeria open for business’, in Abuja on Monday. Link
- The World Bank has called for a single regulatory authority for the regulation of the operations of free zones in Nigeria. Link
- Standards Organisation of Nigeria (SON) Director-General Osita Aboloma has said the agency has shut seven steel companies of the 41 rolling mills registered with it for various reasons “in the last few months”. Link
- Western Lotto Nigeria Limited has disclosed that lottery can generate over N141.3 billion annually for the development of Nigeria’s economy. The Managing Director, Western Lotto Nigeria, Mr. Elvis Krivokuca, stated that “In South African, 82 percent of the population play the lottery at least once in a week. In 2012 alone expert put the lottery shares of funds to the country finances at about N141.3 billion. In same year, United Kingdom lottery made a significant contribution up to the sum of £2.2 billion which was used to host the 2012 London Olympics games.” Link
- Hotel Owners Forum, Abuja (HOFA) has appealed to the Federal Government to provide a development fund dedicated to tourism and hospitality for private sector investors to help grow the sector. Link
- Manufacturer Association of Nigeria (MAN) has disclosed that investments in backward integration projects have boosted local content by 53.17 per cent. Link
- The All Farmers’ Association of Nigeria (AFAN) on Tuesday warned the Federal Government against importation of maize into the country. Alhaji Nuhu Aminu, the Chairman of the Kaduna State chapter of AFAN said that farmers across the country had invested heavily in agriculture, with little or no subsidy from government. “President Muhammadu Buhari directed us to go back to the farm; we have actually accepted the directive in good faith but to our greatest dismay, the Federal Government is now importing maize from outside; we learnt that a ship, laden with 50,000 tonnes of maize, had recently arrived Nigeria,” he said. Link
- The Nigerian electricity generation dropped to 3,511 megawatts (mw) on Monday, losing 603mw about 24 hours after a peak capacity of 4,114mw was reached. Available records from the Transmission Company of Nigeria (TCN) showed that the highest peak generation in July was reached last Friday when a peak of 4,223mw was generated but in the same day, the peak generation dropped to 3,089mw. Link
- The Debt Management Office (DMO) paid out over N4.8 trillion as interests in the last five years to banks and other investors. The money was lent to Nigerian Government from the domestic market through the FGN Bonds; Treasury Bonds or Treasury Bills issued by the Central Bank of Nigeria (CBN) as part of measures to check inflation caused by excess liquidity in the economy. Link
- The Department of Petroleum Resources (DPR) has issued new guidelines for the establishment of hydrocarbon processing plants. It also issued an addendum “supplementary guidelines for the design, construction and operation of modular refinery plants in Nigeria. According to the DPR, the guidelines shall cover all refinery establishment, adding that the establishment of modular refinery plants, shall be with design capacity not more than 30, 000 barrels per day (bpd). Link
- The federal government Monday disclosed that it would restructure the total debts owed to service providers in Nigeria’s privatised electricity market by the 11 electricity distribution companies (Discos) with the aim of easing the debt burden and allowing them to source for monies to fund their capital projects. Link
- The Nigerian Communications Commission (NCC) says it has started an aggressive enforcement of the agency’s codes of corporate governance to address customers dissatisfaction. Prof. umar Danbatta, the Executive Vice Chairman of the commission said that the enforcement was necessary to ensure that operators in the industry continued to operate as viable businesses. Link
- First Bank of Nigeria Limited has announced the appointment of Mr. Abdullahi Ibrahim as an executive director. Prior to his appointment, Ibrahim was the bank’s group executive, retail banking in the North since January 2016. Link
- The American International Insurance Company Limited (AIICO) on Tuesday formally handed over and transferred landed property, private equity holding and cash as legacy funds to the Pension Transitional Arrangement Directorate (PTAD). Link
- The Federal Government has disclosed that no agreement on concessioning of the National Iron Ore Mining Company, NIOMCO, to Global Steel Holdings Limited, has been revoked as claimed by some persons. This was stated by the Permanent Secretary, Federal Ministry of Mines and Steel Development, Abbas Mohammed, who represented the Minister, Dr Kayode Fayemi, at the ECOWAS Federation of Chambers of Mines, EFEDCOM, General Assembly Meeting in Abuja. Link
- Emerging Markets Telecommunication Services Ltd. trading as Etisalat Nigeria on Tuesday informed its customers that the change of brand name will not affect its operations. Link
- Chairman/CEO of Stanel Group, Mr. Stanley Uzochukwu, joined by Governor Willie Obiano of Anambra State and other dignitaries, formally inaugurated the company’s ultra-modern luxury mega center (Stanel World) in Awka, Anambra State. Link
- Dipo Falkner, country general manager, IBM West Africa, has disclosed that the company would be training five million Nigerians over the next two years on information and communications technology skills required to enhance the small and medium enterprises (SME) business entrepreneurs. Link
- The Managing Director of Abuja Electricity Distribution Company (AEDC), Engr. Ernest Mupwaya said the firm has reinforced 4,048 sub-stations in its network through maintenance services while surveying the protection system of 68 others. Link
- Shareholders of Eterna PLC at its 24th Annual General Meeting (AGM) held in Lagos, approved the board’s proposal for the payment of 30 kobo per share amounting to N391 million for its financial year ended December 31, 2016. Link
- Etisalat Nigeria is focused on getting the telecoms group back on track to make a profit after it was saved from collapse, while working on the paperwork to eventually raise new capital. “Our mandate is to make sure the business runs as profitably as it can. What is most important now is to … ensure that the business runs and meets its obligations,” the company’s new chief executive Boye Olusanya told Reuters on Tuesday. Link
- Financial relief came the way of victims of the recent Yoruba and Hausa communal clash in Ile Ife, Osun State, as Dangote Foundation donated N50 million to 220 victims to cushion the effect of the violence. Link
- Kano state assembly has passed a bill for its Health Trust Fund Bill. The fund could generate up to N2.5 billion a year for spending in health. It proposed the fund will be financed through a 5% deduction every month from the total tax revenue of the state and another 1% dedicated monthly from statutory allocation to the 44 council areas in Kano. Link
- The acting President, Yemi Osinbajo, has approved the appointment of 19 judges for the National Industrial Court. The newly appointed judges with their states of origin are, Targema John Iorngee (Benue), Namtari Mahmood Abba (Adamawa), Nweneka Gerald Ikechi (Rivers), Kado Sanusi (Katsina), Adeniyi Sinmisola Oluyinka (Ogun), Abiola Adunola Adewemimo (Osun) Opeloye Ogunbowale (Lagos), Essien Isaac Jeremiah (Akwa-Ibom) and Elizabeth Ama Oji (Ebonyi) .Others are, Arowosegbe Olukayode Ojo (Ondo), Ogbuanya Nelson S. Chukwudi (Enugu), Bashir Zaynab Mohammed (Niger), Galadima Ibrahim Suleiman (Nasarawa), Bassi Paul Ahmed (Borno), Danjidda Salisu Hamisu (Kano), Hamman Idi Polycarp (Taraba), Damulak Kiyersohot Dashe (Plateau), Alkali Bashar Attahiru (Sokoto), and Mustapha Tijjani (Jigawa). Link
- President of the Senate, Bukola Saraki; and Deputy Senate President, Ike Ekweremadu, on Tuesday condemned the Kogi State Government for its alleged roles in the ongoing process to recall the lawmaker representing Kogi West Senatorial District, Senator Dino Melaye, from the National Assembly. Ekweremadu, while raising a point of order at the plenary on Tuesday, referred the lawmakers to a three-page advertorial by Attorney General of Kogi State, Mr. Ibrahim Sani Muhammed, noting that every page of the advertorial cost about N700,000, adding “for this alone, they spent about Nm and I understand that it is in about five other papers so we are looking at about N12m spent to responding to my comment.” Link
Airtel Africa signs new $500 million loan with Bank of America, HSBC, others
The new committed facility consists of a combination of a revolving credit facility and term loans with tenor of up to 4 years.
Airtel Africa has signed a new $500 million loan facility with a group of relationship banks to partially refinance the Group’s €750million Euro-denominated bond (c.$880million) due 20 May 2021.
The banks are Bank of America, BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered Bank and two Indian relationship banks, Axis Bank and Kotak Mahindra Bank.
This was disclosed by the Telco via a statement signed by its Group Company Secretary, Simon O’Hara on Wednesday.
It stated, “The new committed facility consists of a combination of a revolving credit facility and term loans with tenor of up to 4 years. The facility will be used to partially refinance the Group’s €750m Euro-denominated bond (c.$880m) due 20 May 2021.
“The balance of the Euro-denominated bond will be repaid with existing Group cash to reduce gross debt and associated interest costs. The new loan facility further strengthens the core liquidity of the Group.”
Repayment of the loan
The Group Company Secretary explained that the Telco has prepayment flexibilities that will allow the Group to optimise the efficiency of its capital structure with the free cash flows and cash receipts anticipated over the next 12 months following the recent announcements related to tower sales and mobile money minority investments.
Unilever earmarks N62 million as remuneration to its Non-Executive Directors in 2021
Unilever Nigeria has fixed its remuneration to the Non-executive Directors of the company in 2021 at N62 million.
One of Nigeria’s leading FMCG companies, Unilever Nigeria Plc, is set to pay out a total of N62 million as remuneration to its Non-Executive Directors for the year ended December 31, 2021.
This disclosure was made by the leading consumer goods company as one of the key resolutions that would be considered and passed at the Company’s ninety-sixth (96th) Annual General Meeting, which will hold on Thursday 6 May 2021 at 10.00 am.
The famed manufacturer of Sunlight detergent also revealed that in addition to the N62 million remuneration, sitting allowances will be paid at standard agreed rates for each meeting attended and the Chairman of the company will be entitled to a vehicle allowance of N12 million gross per annum.
Short-term benefits paid by Unilever in 2020 to its Directors
Despite the fact that Unilever Nigeria Plc has not paid its shareholders dividends for about two years now, the FMCG company paid out short-term benefits of about N511 million and N73 million to its Executive and Non-Executive Directors in 2020 respectively, compared to a sum of N590 million and N59 million it paid out in 2019 respectively. The members of the leadership team, excluding the Executive Directors of the company, were paid a total of N867 million short term benefits in 2020, down from the N1.04 billion they received in 2019.
On the flip side, the total payout as wages and salaries to the company’s employee in 2020 was N5.05 billion, this is down from the N5.99 billion which the company paid out in 2019.
In case you missed it
According to a recent result by Unilever Nigeria Plc, the company made a loss of about N492 million in the first quarter of 2021. This figure is 144.1% lower when compared to the profit of N1.114 billion made by the company in the corresponding quarter of 2020.
Unilever’s revenue however surged by 45.7% during the quarter. However, the growth in the cost of sales, and the huge 63.3% increase in marketing and administrative expenses pressured the profits down to a loss of N492 million in the first quarter of 2021.
What you should know
- Shares of Unilever Nigeria Plc are currently valued at N12.95 per share, placing the YTD loss in the shares of the company at -6.83%.
- Unilever Nigeria Plc is the sixth most valuable consumer goods company listed on the Nigerian Stock Exchange, with a robust market valuation put at N74.4 billion, higher than Guinness Nigeria Plc, NASCON Allied Industries Plc and PZ Cussons.
- The shares of the top FMCG brand is trading 23.8% lower than its 52-week high price of N17, and 23.3% higher than its 52 week low of N10.5.
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- Trans Nationwide Express Plc profit after tax slumps by over 95% in Q1 2021
- FCMB approves FY 2020 dividend pay-out of N2.97 billion to shareholders.
- Africa Prudential Plc posts profit after tax of N381.35 million in Q1 2021.
- Sovereign Trust Insurance Plc notifies stakeholders of 26th Annual General Meeting.
- Dangote Cement Plc to hold AGM on May 26th