Over the years, social events in Nigeria have become bigger than they were about 30 years ago. With the increasing number of seminars, conferences, weddings and other events that take place every week, it is easy to see why several businesses like event planning, post-event cleaning, professional decorating, makeup artists, cocktail mixing, catering services, etc., have sprouted from them.
For caterers, the main courses are not the only meals to be focused on; they also provide snacks to entertain guests with, before the actual meals are served. In fact, there are events where the caterers for the main dishes are different from those in charge of snacks. Interestingly, snacks served at these events have also ‘scaled’ considerably.
In the past, snacks such as meat pies, puff-puff, and buns were the snacks of choice for most events. But recently, these snacks seem to be gradually disappearing from tables at various events.
This week on product review, we examine how new snack entrants, finger foods like, small chops, shawarma, jam-filled doughnuts, just to mention a few, are knocking out the ‘legendary’ meat pie from tables in the country.
Value Proposition of various snacks
Demand for snacks in Nigeria is growing daily, with consumers seeking healthier and more convenient alternatives to junk snacks. Studies have also shown that snacks can be used to improve the dietary intakes of consumers by incorporating nutrients such as protein and fiber from plant sources which have health benefits.
In Nigeria, there is a wide range of indigenous snacks such as plantain chips, KuliKuli, Kilishi, ChinChin, and so on that are not only tasty but also healthy. They are however confined to street corners as local snack options. Also, Potato chips, sausage rolls, and foreign generic cookies are few of the many snacks hawked majorly in traffic. These snacks drive sales that are huge enough for franchises to be bought to make the foreign snacks more readily available locally.
On the other hand, indigenous snacks are not as popular outside the shores of the country, causing a large imbalance in the export/import flow.
The arrival of Finger Foods
The arrival of finger foods is increasingly challenging the popularity of other popular snacks. Hardly would you attend any party where fingers foods, popularly called small chops, won’t be served.
Aside from big events like weddings, funerals, christenings and birthday parties, small chops have also become the preferred choice when having get-together, seminars, and other events. Some nightclubs and bars also serve small chops to their patrons. Asides being on offer at parties, many individuals and companies now order them at home or the office, either for celebrations or private consumption.
The small chops usually come in small packs with varieties of snacks such as spring rolls, samosa, fish finger, fish in batter, chicken in batter, mosa, puff-puff, meat balls, peppered snails, peppered steaks, beef pockets, gizdodo, prawns in batter, etc.
Although other snack varieties such as doughnuts are still in high demand, especially with the introduction of the jam-filled varieties into the market, small chops are giving them a fight for the table.
Also, another snack recipe that is gaining acceptability in the snacks market is shawarma. Which has its origin from the Middle-East where thin cuts of lamb, chicken, turkey, beef and mixed meats are stacked in a cone-shaped dough.
Popular traditional snacks like puff-puff and buns are still widely patronized by low and middle-income earners, as they come at pocket-friendly prices.
What consumers say
According to a caterer, Ms. Odinaka, the demand for meat-pie by clients has reduced considerably. She revealed that for weddings, most people now prefer small chops and grilled goat meat, popularly called Asun, as snacks for their events.
Nairametrics also observed that price is a major factor which affects the demand for meat pie by consumers. The average price for roadside meat pies goes for N250, and many consumers complained that most of them usually lack meat filling and do not justify the price. The meat pies sold in some fast food outlets cost higher, between N450-N500, though they offer better products as they still have more meat filling.
A small pack of small chops goes for N500, while the bigger pack goes for N1000; a small pack of Asun goes for N500 and the prices of doughnuts and egg-rolls range between N50-N150.
Sarah, a cook in one of the high-brow fast food outlets in Opebi, was of the opinion that there is no significant drop in the number of sales of meat pies compared to other snacks.
Nairametrics also noticed that millennials prefer small chops and shawarma, compared to the older generation who still prefer meat pies as their snacks of choice.
While the price of meat pie is still affordable, many prefer small packs of small chops where they can have varieties of snacks in one pack, as against one meat pie with little or no meat filling.
A visit to the premises of a Pentecostal church around Oregun on Sunday showed that people patronised the small chops, Asun and Shawarma outlets, while meat pie was hardly seen on display.
In a poll by Nairametrics on our social media platforms, 39% voted for small chops as the snacks of their choice, 26% voted for the legendary meat pie, shawarma got 29%, while doughnuts got a meagre 6%.
Which of these snacks overtakes Meat Pie as the King of fast food snacks in Nigeria?
— Nairametrics (@Nairametrics) August 13, 2018
Apparently, meat pie, like every other ‘old school’ item, has lost its position as the go-to snack for events, due to the entrance of more exotic options. While it would be difficult to totally kick out the legendary meat pie, shawarma and small chops have proven to be competent challengers. Perhaps they might all come to a compromise and have equals shares at events tables.
DEVALUATION: CBN updates website to official rate of N360/$1
The central bank of Nigeria has devalued its official exchange rate from N307/$1 to N360/$1.
Just as Nairametrics reported, the Central Bank of Nigeria has devalued its official exchange rate from N307/$1 to N360/$1. The apex bank has now reflected this change on its website signaling a confirmation. The bank is yet to issue a press release to this effect.
The CBN has now officially devalued by 15% moving from N307/$1 to N360/$1. Depreciation at the “market-determined” I&E window is 5% having moved from N360/$1 to N380/$1
Devaluation: Nairametrics reported yesterday that the Central Bank of Nigeria (CBN) sold dollars to banks at N380/$1 in a move signifying a devaluation of the currency. Banks trading at the Investor and Exporter (I&E) window bought dollars at N360/$1 from the CBN on Friday, March 20, 2020. The I&E window is the official market where forex is traded between banks, the CBN, foreign investors, and businesses. The central bank typically buys or sells in the market as part of its intervention program.
Nairametrics also got hold of a letter from the CBN to banks informing them of the new exchange rate for dollars flowing from the International Money Transfer Operators (IMTOs). According to the CBN, IMTOs will sell to banks at N376/$1 while banks will sell to the CBN at N377/$1. The CBN will sell to BDC’s at N378/$1 while the BDC’s will sell to end-users at “no more than” N380/$1.
Single Exchange Rate: A report yesterday also suggested that the CBN also planned to move to a single exchange rate policy for determining the price of the dollar. A senior central bank official who does not want to be identified, said, ‘Today we allowed the rate at the importer and exporters (I&E) window to adjust in response to market developments.’
The central bank has now made an apparent u-turn after it had initially that the “market fundamentals do not support naira devaluation at this time” detailing reasons why it did not need to devalue.
Falling oil price: Oil prices fell to under $20 on Friday before climbing back up to settle at $23 per barrel. Nigeria’s Bonny light trades at $26 while the benchmark Brent crude trades at $29 per barrel. In response to the crash in oil price, Nigeria’s announced a cut to its 2020 budget by N1.5 trillion as it faced the reality of a potential drop in its revenues. Nairametrics also has information that state governments are getting jittery about their ability to sustain salary payments as a reduction in their federal allocation “FAAC” is anticipated.
Investment options for salary earners
Investment options for the salary earners
#Investing #Entrepreneurs #Investment #Salary #Wages
Recently, one of the readers of my articles asked to know what investment options are open to salary earners. A salaried individual is like everyone else except that he or she has a fixed monthly income. This implies that their investments and expenses have to be managed strictly according to their fixed monthly income.
Since salary is assumed to be the only source of income for the salaried, it is advisable that such an individual fortify himself financially before investing so that adverse investment performance will not have untold effect on him and his family. Therefore, if you are a salaried prospective investor, you need to:
Get life insurance
Most families in Nigeria are single income families so much such that if anything bad happens to the income earner, the family gets shattered, at least financially. Again, given the risks inherent in capital market investments, it is only prudent to have a life insurance as a first step in one’s investment journey. It is very baffling to see many investors very deep into the market, yet they do not have life insurance.
[Read Also: Understanding the risks in bond investing]
Life insurance is and should be a basic part of any financial plan. Life insurance is a protection for loved ones against financial hardship arising from the death of a breadwinner. This is even more important today than ever before with high cost of funeral expenses, college education and medical bills. So, the first investment option for a salaried individual is to get a life insurance.
Prepare for financial emergencies
Life is full of surprises, emergencies do happen, jobs are lost without notices, and even good investment opportunities emerge sometimes suddenly. There is, therefore, the need for a cash reserve to help weather the financial storms and emergencies when they come calling.
Cash reserves do not only provide for emergencies, they also help to ensure that investments are not liquidated prematurely or at inopportune times to cover unexpected expenses. There are no hard and fast rules on what the exact amount of the required cash reserve should be, but most financial experts and planners will advise that an amount that equals about six months of living expenses be set aside.
So, as a salaried person, your next investment should be to have a cash reserve. A cash reserve should not necessarily be in a savings account or under the mattress; it could be in an interest-bearing money market account, money market mutual funds with low to zero luck-up period or another form of very liquid investment that is readily convertible to cash without loss of value.
[Read Also: Understanding the risks in bond investing]
Know your risk appetite
As a salaried and fixed income individual, your risk appetite is most likely going to be low as well as your risk tolerance, although your extended family profile could change all that. You need to know or understand your risk tolerance before you engage in any capital market investment.
Your risk tolerance will and should drive the type of investments you go into. Your risk tolerance depends on your psychological makeup, your current insurance coverage, presence or absence of cash reserve, family situation, and your age among others.
Talking about family situation, it is reasonable to think that a married individual whose children are still in school will be more risk averse than an unmarried person. On the other hand, older people have shorter investment time horizon within which to make up for any losses. the reason for this is because the older you get the less time you have to work to recoup on losses.
In that case the risk tolerance of an older man will be less than those for younger folks. Again, the more cash reserve and insurance coverage you have, the more your propensity to take risk. Now having known your risk tolerance based on the underlying factors, you can then define your investment objectives
[Read Also: Important tips on how to profit in a bearish market]
Set your Investment objectives/goals
Having met those essentials above, you are now ready for a serious investment plan or program. A good investment plan starts with investment objectives. Investment objectives are the force that determines what you invest in. Investment objectives range from capital preservation, to capital appreciation and constant income generation.
Capital preservation as an investment objective implies that you, the investor, aim at minimising the risk of loss by maintaining the purchasing power of your investment. So, if you are risk averse or you will need money from your investment soon for children’s education or for building a house or you are nearing retirement, this should be your objective.
Investors whose aims are to see their investment portfolios increase in real terms over a period of time are better suited for capital appreciation as an objective. This is better for investors that are more risk tolerant and those with more potential to recoup on losses along the way.
If you are already retired or nearing retirement, and therefore depend on your retirement plan supplemented by investment income, you need an investment that generates income rather than capital gains. In that case, your investment objective should be current income generation. It is always good to have investment goals stated in terms of risk and returns.
Decide on asset allocation
Armed with the knowledge of your risk appetite and investment objective, you are now ready to decide on what to invest in, and how much to invest in any asset class. This takes you to asset allocation decisions. Asset allocation involves dividing an investment portfolio among different asset classes based on an investor’s financial requirements, investment objectives and risk tolerance.
A right mix of asset classes in a portfolio provides an investor with the highest probability of meeting his/her investment objectives. Asset allocation is the most important investment decision an investor can make in a portfolio because it demonstrates an investor’s understanding of his or her risk preferences and return expectations.
It is good to strive for a diversified portfolio. Unfortunately, the Nigerian market does not provide a lot of asset classes for optimal diversification, but diversification can be achieved across sectors or industries within the few asset classes in the Nigerian stock market.
Decide on how to invest
There are different ways to invest in the capital market. You can invest directly by making the stock selections by yourself, thanks to the online stock trading platforms that abound the world over. This implies that you have what it takes to conduct the required research and analysis of the companies whose shares or stocks you wish to buy.
[Read Also: How I Would Invest My Mother’s Retirement Funds]
It also implies that you have what it takes to know when to sell or add to existing positions. Another method is to have someone “do the heavy lifting” for you. In this case, that someone, often times called fund manager or portfolio manager, does the research and analysis and selects shares that suit your investment preferences, investment objectives, risk tolerance and appetite as well as your investment time horizon.
This route is most suitable for investors that lack the knowledge and time for the required research and analysis. If you decide to go this route, mutual funds are the best bet for you.
Atiku kicks as Buhari spends $3.7 billion in foreign debt service since 2015
The Buhari led government has spent about $3.7 billion in foreign debt service since 2015, one of the highest from any democratically elected government. The highest single-year foreign debt service was in 2006 at $1.79 billion.
About 68% of Nigeria’s foreign-denominated debt servicing is in commercial Eurobonds issues over the last two years. The loans range between 5.1% and 9.2% per annum. Nigeria’s external debt stock stood at $27 billion in June 2019.
Rising debt service: The Buhari administration has so far spent about $1.1 billion in foreign debt service this year. In 2018, the government spent about $1.4 billion in debt service, more than 3 times the $444 million it spent servicing foreign debts in 2017. The rising cost of debt service is a direct attribute of the government’s reliance on foreign loans as a means of funding government expenditure.
Foreign Loans: Nigeria’s fallen revenue following the crash in oil price has allowed President Buhari to rely mainly on foreign loans to fund government expenditure. As of June 2015, Nigeria’s foreign loans were about $10.5 billion mostly made up of multilateral and bilateral loans.
However, by June 2019, total foreign-denominated loans were $27 billion with $10.8 billion made up of Eurobonds. Commercial loans which include Eurobonds and Diaspora bonds make now make up about 42% of total foreign borrowings.
Critics of the government have complained about the government penchant for debts believing that it could put the future of younger Nigerians in jeopardy. Supporters of the government, however, believe the borrowing was necessary to invest in critical sectors of the economy particularly infrastructure.
Recently, Director-General of MAN, Segun Ajayi-Kadir expressed worry about Nigeria’s rising debt.
“….the rising debt profile of Nigeria continues to be a cause for concern, especially the capacity of government to effectively service it and, at the same time, meet the bursting needs and aspiration of the citizenry going forward.”
“Already, our budget projections for 2020 anticipates a debt service sum of 2.45trillion, an amount higher than the 2.14 trillion earmarked for capital expenditure.
“And even though our debt-to-Gross Domestic Product (GDP) ratio, which currently stands at 28 percent, is still below the average in Africa, our revenue-to-GDP ratio remains low.”
The Finance Minister Zainab Ahmed however, believes the current debt profile is sustainable, comparing it to our GDP.
“Currently, Nigeria’s debt is at N25 trillion; that is about $83 billion. And at $83 billion, we are just at 18.99%…so 19% debt to GDP. I hear people say Nigeria has a debt problem. We don’t have a debt problem. What we have is a revenue challenge and the whole of this government is currently working on how to enhance our revenues, to ensure that we meet our obligation to service government as well as to service debt.”
Former Vice President and defeated PDP Presidential aspirant, Atiku Abubakar during the week piled criticism on the government’s borrowing.
“I have said it time and again. The business of government is too serious to be left in the hands of politicians. We must all ask questions because if they throw away the future, it is not going to be their future they are throwing away, it will be all our futures.
“The fact that Nigeria currently budgets more money for debt servicing (N2.7 trillion), than we do on capital expenditure (N2.4 trillion) is already an indicator that we have borrowed more money than we can afford to borrow. And the thing is that debt servicing is not debt repayment. Debt servicing just means that we are paying the barest minimum allowable by our creditors.
What this means: Nigeria’s rising foreign debt profile should be a worry to investors and businesses and must be watched closely. The country’s ability to repay these loans will continue to be harder as it increases especially now that it is costing about 9%. The immediate risk for investors is the exchange rate which could be the first to suffer should the government struggle to repay its loans.