Nigeria’s postal service, NIPOST, has just announced its adoption of the innovative global addressing system what3words (www.what3words.com). Nigeria is the seventh country to adopt what3words, and the third in Africa. The system is already being used for mail deliveries in Mongolia, Sint Maarten, Côte d’Ivoire, Djibouti, Tonga and Solomon Islands. Nigeria is Africa’s largest economy and its most populous country with approximately 184 million inhabitants. It has the seventh largest population in the world.
Nigeria’s poor addressing system means that only 20% of its inhabitants receive mail at home. 79% of homes and businesses cannot receive deliveries to the door, and the remaining 1% receive their mail using one of the 478,000 P.O. boxes throughout the country. A postcode system does exist, but only 5% of mail gets properly addressed with the postcode, hampering the efforts of NIPOST to improve its quality of service.
How it works
Determined to improve this situation, NIPOST has set itself the ambitious target of increasing home delivery to 70% within the next 2 years and 90% by 2020 through the Mail for Every House Initiative (MEHI), and has adopted what3words to help it achieve these goals. The innovative global addressing system has divided the world into 57 trillion 3m x 3m squares, each with a unique 3 word address. It means that every home and business in Nigeria has a simple and accurate address that is easy to remember and to use. For example ///bracelets.hesitations.mutes refers to the exact 3m x 3m square at the entrance to the main post office in Nigeria’s capital, Abuja.
Available in 14 languages, with many more currently in development, what3words is used in over 170 countries by governments, postal services, logistics companies, emergency services and NGOs, as well as individuals. It is more accurate than traditional street addresses, simpler than landmark-based directions, and easier to remember and communicate than GPS coordinates. The system has built-in error detection and is available through a free mobile app and API integration. The system even works offline, without a data connection.
“We are very pleased to be collaborating with what3words as an addressing solution with huge potential to unlock opportunities” said Barrister Bisi Adegbuyi, Nigeria’s Postmaster General. “Better addressing is a key to NIPOST’s agenda, which aims to transform, innovate, and deliver more services to more people all over the country”.
Young people make up 62% of Nigeria’s population, and this is reflected in the significant increase in cross border e-commerce in the country; 53,612 parcels and packets were handled in 2016 (approx. 200 per day) which is up 70% since 2014. The e-commerce market is currently worth $12 billion, but there is still huge potential for growth. With improvements to infrastructure, innovation around payment systems and a reliable addressing system, Nigerian e-commerce could be set to take off at an incredible scale.
“With a rapidly growing ecommerce ecosystem, Nigeria is a very exciting country to be working with,” said Chris Sheldrick, CEO and Co-founder of what3words. “Postal services have a critical role in building a strong economy and NIPOST are firmly focused on the future, and are taking steps to modernise and grow their capacity and range of services.”
what3words is an innovative global addressing system. It has divided the world in 57 trillion 3m x 3m squares, each with a unique 3 word address. 3 word addresses are easy to remember, and to share via email, text or over the phone. The addresses are pre-assigned, using an algorithm and each 3 word address refers to a precise 3m x 3m square somewhere in the world. The what3words API is being integrated by business, apps and services across the world in a wide variety of sectors. It is also used by individuals via the free what3words app. The system is currently available in 14 languages, with many more in development, and it is also optimised for voice recognition. Since its launch in 2013, what3words has won many awards, and in 2016 CEO Chris Sheldrick was named EY’s British Accelerating Entrepreneur.
Fidelity Bank to raise N50 billion in bonds in Q4 to refinance existing debts
The new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.
One of Nigeria’s second-tier commercial banks, Fidelity Bank Plc, has concluded plans to issue up to N50 billion ($131.3 million) in local bonds by the fourth quarter of 2020, in order to refinance existing debts as the yields drop.
The disclosure was made by the Chief Operations and Information Officer, Gbolahan Joshua, during an analyst call on Tuesday, September 8, 2020.
The crash of crude oil price globally, which was triggered by the novel coronavirus pandemic, has led to a decline in bond yields on the local debt market. This has made foreign investors to dump their local assets, leaving excess liquidity in the money market. This has also put a lot of pressure on the foreign exchange market as they look for dollars to repatriate their funds.
The Fidelity Bank top executive disclosed that the new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.
The global economic situation has seen yields in the debt market drop from as high as 18% about 3 years ago to less than 5% for the one-year treasury bill.
Fidelity Bank had revealed that it expected to see a 15% drop in profit this year when compared to 2019 result due to the coronavirus pandemic. Its profit after tax increased by 21.9% to N12 billion for the half-year 2020.
The second-tier bank also disclosed that its income declined in the second quarter due to a downward review of lending rates on loans as a result of the economic downturn.
Heineken buys more units of Nigerian Breweries Plc
The Dutch firm has invested N276 million in NB since August, to increase its stake in the Brewer by 0.10%.
The major shareholder of the largest brewer in Nigeria, Heineken Brouwerijen B.V, has increased its stake in Nigerian Breweries, with the purchase of 233,110 additional units of Nigerian Breweries shares. This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which was seen by Nairametrics.
According to the notification, which was signed by the Company’s Secretary, Uaboi G. Agbebaku, the purchase was made on the bourse over two transactions on the 2nd and 3rd of September.
This disclosure is a regulatory requirement that must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.
The analysis of these transactions indicates that the purchase consideration for the 233,110 additional units of Nigeria Breweries shares at an average price of N39.94 is put at N9.3 million.
This purchase and previous purchases further cement Heineken Brouwerijen B.V’s status as a major shareholder; the company has accumulated a total of 7,720,236 since 30th June.
As of June 30th, when Nigerian Breweries released its Half-year financial results and reviewed its shareholding pattern, the company had exactly 7,996,902,051 outstanding shares, with Heineken Brouwerijen B.V being the majority shareholder with 3,019,363,804 units, which amount to 37.76% of the total shares of the company outstanding.
Hence, with the current purchase of 233,110 additional units, and previous purchases in August and September 1, which amount to 7,487,126 units, Heineken’s ownership percentage of Nigeria Breweries is now put at 37.85%.
Insider transactions, both sales and purchases, are often an indication of how shareholders perceive a company’s valuation. It could also mean a possible capital raise or that the majority shareholders are strengthening their existing holdings.
In like manners, the purchase of the shares of Nigerian Breweries by Heineken and other majority shareholder has mopped up stray volumes on the bourse, and pushed the stock price higher by 29% or N9, from N31 it closed at on the 3rd of August to its current value of N40 with 38.2x earnings.
About the company
Nigerian breweries is the largest brewing company in Nigeria. It engages in the brewing and marketing of lager beer, stout and non-alcoholic malt drinks, and the bottling of the Schweppes range of soft drinks and Crush Orange. Its brands include Star, Gulder, Legend, Heineken, Maltina, Amstel Malta, Fayrouz, Climax, Goldberg, Malta Gold, and Life. These products are mainly sold in Nigeria and other neighbouring countries.
Key takes on NB’s financials
Nigerian Breweries was affected by the disruption in the global and domestic demand and supply chain, as profit after tax of the largest brewer dropped by as much as 58%, at the back of the adverse impact of the sharp contraction in economic activities.
The knock-on effect of the COVID-19 lockdown, which affected the trade segment of the business, affected the company sales and this triggered the 11% drop in revenue in the first half of the year.
Nestle’s parent company increases stakes in Nestle Nigeria in August
The purchase consideration for the 748,047 additional shares at an average price of N1,174.74 is put at N878.8 million.
Nestle S.A, Switzerland, the parent company of Nestle Nigeria Plc and the majority shareholder of the company, has increased its stake in the Nigerian subsidiary, as it purchased about 748,047 additional shares in August.
This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which is seen by Nairametrics.
This disclosure is a regulatory requirement which must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.
The analysis of this development shows that the purchase consideration for the 748,047 additional shares at an average price of N1,174.74 is put at N878.8 million.
Importantly, this purchase increases the ownership percentage of Nestle S.A, this adds significantly to the multinational’s investment in the company as the parent company now owns 66.27% of Nestle Nigeria Plc.
The 66.27% ownership share of Nestle S.A. total amounts to 525, 307, 504 ordinary shares worth N617 billion out of the 792, 656, 252 shares outstanding.
Meanwhile, insiders’ transactions both sales and purchases are often an indication of how shareholders perceive the company’s valuation. It could also mean a possible capital raise or the majority shareholders strengthening their existing holdings.
About the company
Nestlé Nigeria PLC is one of the largest food and beverage companies in Africa. Nestlé Nigeria Plc engages in the manufacturing, marketing and distribution of food products including purified water. It also exports some of its products to other countries within Africa.
It has three product segments: Food, Beverages and seasoning. The Food segment engages in the production and sale of Cerelac, Nutrend, Nan, Lactogen and Golden Morn. The Beverages segment engages in the production and sale of Milo, Chocomilo, Nido, Nescafe and Nestlé Pure Life. While the seasoning segment engages in the sale of Maggi cubes.
Key takes on Nestle financials
Nairametrics had earlier published after perusing through the company’s half-year unaudited financial report that the increase in the cost of sales, Administrative expenses, low finance income coupled with high costs coloured the bottom line of the company as earnings per share dipped from N33.11 to N27.53.
This shows the knock-on-effect of the pandemic on a giant like Nestle, despite grappling hard to keep revenues flat year on year, the increase in key costs still ebbed earnings.