Alluvialtrade, Indian conglomerate Tata and heavy equipment giant John Deere have signed a partnership agreement. The company disclosed recently in a press release. Tata John Deere will deploy the tractors to states in the Niger Delta as well as adjoining states.
Niger Delta states comprise Akwa-Ibom, Abia, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers states.
Terms of the agreement
Tata John Deere (which is the joint venture distributor of the partnership) will deploy up to 300 tractors over the next two years to farms spanning 120,000 hectares, or 463 square miles, in the Niger Delta and nearby states.
The Niger Delta is one of the geopolitical zones in the country and comprises Akwa Ibom, Cross River, Bayelsa, Rivers, Delta and Edo.
Individual farmers will undertake self-financing lease agreements for the use of both the tractor and a driver.
Who does this benefit?
Most farmers in the country cannot afford to purchase tractors of theirs. The few available are often managed by government agencies, that apply a lot of bureaucracy before releasing them. When these tractors are finally available, the farming season is far gone.
The move will also create employment in the Niger Delta, which often witness youth restiveness and militancy. Nigeria’s crude oil deposits are predominantly located in the region and militant attacks on oil installations often lead to a drop in crude oil production and revenue for the government.
The Buhari administration has also taken diversification of the country’s economy as a key agenda.
John Deere, established in 1837, is American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. The company had net sales and revenues of $29.7 billion in 2017.
Tata was founded by Jamsetji Nusserwanji Tata in 1868. The group operates over 100 companies across 6 continents and employs over 695,000 staff. The Group had Q1 2018 revenues of $144.7 billion.
Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19
Note that some companies have had to revise their earnings estimates due to pandemic.
Guinea Insurance Plc is being very optimistic, having projected a 78.6% rise in gross premium written to N1.8 in Q3 2020, up from N1 billion during the comparable period in 2019. The insurer also forecasted a profit after tax of N185.8 million for the period, indicating an expected better performance compared to N735 million loss recorded in Q3 2019.
The earnings forecast, which was sent to the Nigerian Stock Exchange earlier today, also estimated that reinsurance expense for Q3 will be at N337.5 million. Claims expenses, underwriting expenses, and other operating experiences were equally put at N331.3 million, N292.6 million, and N692.2 million, respectively.
Note that this forecast is coming amid the negative economic impacts wrought by the Coronavirus pandemic. But while a growing list of companies (including Guinness Nigeria Plc) has downgraded their 2020 earnings and profitability forecasts, Guinea Insurance is expecting growth and that is good.
In Q1 2020, Guinea Insurance Plc reported gross premium written OF N207 million and a profit after tax of N12.6 million. The company’s consolidated half-year 2020 financial has not been released and is expected sometime between this month and next month.
The company’s share price ended today’s trading on the Nigerian Stock Exchange at N0.20. Year to date, this stock has not recorded any price movement.
CBN unification of exchange rate a welcome development – MAN
Ahmed urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates.
The President of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, announced on Friday that the recent CBN unification of Nigeria’s exchange rate is a welcome development that will boost investor confidence in Nigeria.
He said the exchange rate unification will enable stable planned production for manufacturers in Nigeria leading to economic growth, adding that the Manufacturers Association had urged for an exchange rate unification to enable a market-friendly business environment in Nigeria.
“Clearly, this is a welcome development and a laudable initiative that has come at the right time.”
“This is more so, particularly, now that the economic outlook is gloomy in light of the impact of the ravaging COVID-19 pandemic that has culminated in uninspiring macroeconomic situations,” he said.
He revealed that the World Bank had attributed Nigeria’s falling Foreign Direct Investment (FDI) to the multiple exchange rates as investors felt a “manipulation of the foreign exchange market.”
“The unification will also boost investors’ confidence, control rising inflation, and promote transparency, entrench better exchange rate management and eradicate distortions to the barest minimum,” he added.
He urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates like “round-tripping” which he says expand the inflows of foreign investment into the economy.
He called on the Central Bank to implement 2 strategies to ensure a smooth transition into a unified exchange rate system.
“The first is to limit the short-term pains until efficiency gains materialize by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialize,” he said.
He advised, it’s necessary the CBN “submit all the instruments of exchange rate determination” towards a free-market approach.
Seplat appoints Emeka Onwuka as CFO
Onwuka has over 30 years’ experience in financial services across Sub-Saharan Africa.
Seplat Petroleum Development Company Plc. has appointed Mr. Emeka Onwuka as Chief Financial Officer and Executive Director, Lagos, and London.
The appointment takes effect from August 1, 2020.
The appointment was announced in a notice sent to the Nigeria Stock Exchange on Friday and has been ratified by the company’s board of directors.
According to the notice which was signed by the company secretary and chief governance compliance officer, Mrs. Edith Onwuchekwa, the Board of Seplat is confident that “the wealth of knowledge and experience Onwuka brings will be a great addition to the Company”.
Mr. Onwuka has over 30 years’ experience in financial services across Sub-Saharan Africa. Mr Onwuka is a Partner at Andersen Tax Nigeria and holds various Board positions as Chairman; FMDQ Securities Exchange Limited; Director FMDQ Holdings Limited; Director, Ecobank Nigeria Limited; and Director, Bharti Airtel Nigeria.
He was also the former Group Managing Director /CEO of Diamond Bank Plc and former Chairman of Enterprise Bank Limited.
He is a Chartered Accountant, a Fellow of the Institute of Chartered Accountants of Nigeria, and a Fellow of Chartered Institute of Taxation of Nigeria.
Mr. Onwuka received his B.SC. in Political Science from the University of Nigeria, Nsukka, and holds an MBA from the University of Benin.
He is an alumnus of the Lagos Business School, Wharton Business School and Harvard Business School.
Onwuka also holds the Nigerian National Honor, Officer of the Order of the Niger (OON).