Everyday Money Matters is live on @lagostalks913 every Wednesday between 7.30am. On the show, we give answers to questions from our listeners and those sent to us.

Here are some of the questions we treated in today’s edition.

Question

Jamie started a business with his friend but things have gone awry. Chairman takes decsions without carrying the board. For example, Chairman and MD appoints auditors without their knowledge. He needs some corporate governance tips.

Answer

Tunji says it’s a bit too late as the business has started making money. Decisions need to be defined as well as functions of the board.

Ugodre says the first thing that should be done is to appoint auditors. According to Nigeria’s company rules, CAMA, the board of directors are usually the first to appoint auditors of a company and not the Chairman and MD only.  However, if the Chairman and MD are the only directors of the company, then they are right to appoint the auditors. Thus, Jamie needs to find out if he is a director.

Question

Eme is looking into investing in Nigerian treasury bills but is unsure if it’s the right thing to do.

Answer

Ugodre says it’s a matter of risk. What is his risk appetite? Treasury bills give a steady income. If he has a higher appetite for risk, he can go into other things.

Question

A caller wants to know if he should buy a food truck in Nigeria or import one.

Answer

Tunji says either would work.

Ugodre says he should work with a checklist but he should not discard local options as it could be cheaper.

Question

A caller would want to know if he needs someone else in setting up a limited liability Company. He also wants to go into Bitcoin mining, for Bitcoin mining power is key in Nigeria.

Answer

In Nigeria, you need a minimum of two shareholders to setup a Limited Liability Company.

Electricity is a critical factor in bitcoin mining. Aside that, there are no major issues. A lot of the equipment used is however imported.

Here is a link to today’s thread.

 

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