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DMO set to issue FG’s N100 billion Sukuk bond

DMO announces FG’s commitment to float N100 billion Sukuk bond

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Eurobonds, Patience Oniha, DMO, External debt servicing

Patience Oniha, the Director General of the Debt Management Office (DMO), has announced that the Federal Government would in December, float N100 billion Sukuk. This is will be the second tranche of Sukuk Bond issuance by the DMO.

Oniha said,

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“June was when the budget was approved and Sukuk is a project that was also approved in the budget. We will float it; we have made significant progress; we will issue it this year.”

According to Oniha, the DMO was working with the Ministry of Power, Works and Housing on the projects earmarked for the N100 billion Sukuk bond. She also expressed optimism that the bond would be oversubscribed, based on the feelers from investors and the public.

“…in terms of Sukuk, I think from the feelers we have got from investors and the public, it is a product the people want to associate with.” – Oniha

Sukuk are Islamic bonds, structured in such a way as to generate returns to investors without infringing Islamic law that prohibits riba or interest.

The proceeds from the issuance of the Sukuk bond are often used for construct and rehabilitate infrastructure in Nigeria.

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Nairametrics had reported the first tranche of Sukuk bond issuance by the Federal Government through the Debt Management Office (DMO), which was used to fund the rehabilitation and construction of roads.

Some of the roads funded by the first tranche include the Ibadan-Ilorin Road, Kolo-Otuoke-Bayelsa-Palm Road, Enugu-Port/Harcourt Road, Kaduna Eastern By-Pass, Kano-Maiduguri Road and Loko-Oweto Bridge over River Benue, among others.

Some of the roads funded by the first tranche include the Ibadan-Ilorin Road, Kolo-Otuoke-Bayelsa-Palm Road, Enugu-Port/Harcourt Road, Kaduna Eastern By-Pass, Kano-Maiduguri Road and Loko-Oweto Bridge over River Benue, among others.

Patricia

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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TikTok to relocate headquarters to London following approval by UK ministers

The technology firm has been under heavy scrutiny and criticism from the US government.

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ByteDance Ltd, the parent company of TikTok, is in the process of relocating its headquarters from Beijing to London, following a deal that was approved by UK ministers.

A report by Reuters also noted that the Chinese company’s founders will soon officially announce their intention to set up an office in London.

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This move may likely upset President Donald Trump, who had announced plans to ban TikTok in the United States of America. The US considers the UK as a reliable ally.

Nairametrics had reported about 2 weeks ago that the Beijing-based video-sharing social networking firm, had been in discussions with the British Government over the relocation of its headquarters to London. The move has been perceived by analysts/observers seen as part of ByteDance’s strategy to distance itself from its Chinese ownership.

The technology firm has been under heavy scrutiny and criticism from the US Government over suspicions that China could be forcing it to turn over data. Earlier this year, the company was even labeled a potential counterintelligence threat by senior members of the US congress.

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ByteDance recently came under intense pressure from the White House and US lawmakers to sell off TikTok’s US operations. It now has a 45-day deadline to negotiate with Microsoft over such a deal.

ByteDance Ltd is looking at all the available options to resolve its dispute with the American Government. In the meantime, Chief Executive Officer, Zhang Yiming, said no decision has been taken regarding the proposed sale of its US operations to Microsoft Corp.

The relocation of its headquarters to London might come as a surprise considering the current tension/dispute between the technology firm and the United States Government, who are close allies of the UK.

It can be recalled that amid tensions between China and some Western Countries and in solidarity with the United States, the British Government recently banned Chinese Telecom firm, Huawei’s 5G networks in the country. According to the UK Government, Huawei’s products posed a threat to the security of the UK’s infrastructure.

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Lagos state lists conditions that must be met by churches, mosques before reopening

The government specified that the conditions must be met for worship centres to open.

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Sanwo-Olu, COVID-19: Lagos ramps up measure to smash disease as it begins fumigation, Covid-19: Total lockdowm imminent as Lagos fears confirmed cases could hit 39,000, Hotels to remain shut in Lagos, as manufacturing and construction companies get conditional waivers, COVID-19 palliative: Sanwo-Olu concludes Homegrown School Feeding Programme

The Lagos State Government has introduced some measures and conditions that must be met/fulfiled by all religious centres and places of worships that are planning to reopen, following further relaxation of lockdown.

These measures were contained in a press statement that was issued by the Lagos State Governor, Babajide Sanwo-Olu, and seen by Nairametrics.

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Nairametrics had reported that the Lagos State Governor on Saturday, August 1, during his 17th briefing on the state’s COVID-19 response, announced the reopening of worship centres with effect from August 7th. Now, the Lagos State Government has specified that the following conditions must be met for worship centres that are planning to open;

  • Only regular services/gatherings are permitted to hold. Night vigils and other non-regular programmes remain prohibited until further notice.
  • Attendees above 65 years are strongly discouraged from attending worship services.
  • Consider holding services and gatherings in large, well-ventilated areas or outdoors, as circumstances and faith tradition allow.
  • No face mask, no entry policy, must be maintained throughout the duration of the services.
  • Regular cleaning and disinfection of facilities must be carried out to maintain clean and hygienic environments before and after every service.
  • Appropriate screening equipment for COVID-19 symptoms such as a contactless temperature check must be available for entrants into the facility.
  • It is mandatory to provide hand-washing facilities and sanitizers at the entry and exit point of the premises.
  • National emergency response phone lines must be displayed prominently on the premises.
  • Handshakes, hugs and high fives are not permitted at services or gatherings and this should be emphasized by displaying appropriate signs prominently.
  • The use of stationary collection boxes and electronic methods for collection of the offering must be encouraged.
  • The flow of human traffic in and out of these places of worship must be conducted in an organized and orderly manner.

The Governor urged Lagosians to fully comply with the measures outlined in the new regulations, stressing that Lagos State Safety Commission has a statutory responsibility to monitor the activities and operations of all organizations and worship centres that have been permitted to re-open.

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Shoprite to leave Nigeria after 15 years

Shoprite announced its plan to sell off its Nigerian operations.

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Shoprite’s sales drop by 8.1% in Nigeria in H2 2019 over Xenophobic attacks

South African retailer, Shoprite International Limited announced earlier today that it is considering a potential divestment from its Nigerian operation – Retail Supermarkets Nigeria Limited.

This was disclosed in the company’s latest operational and voluntary trading update which was published this morning.

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Backstory: The South African retailer has been struggling in Nigeria in recent years owing largely to increased competition and government policies such as border closures and local production of consumables. Nairametrics reported in April that Shoprite Nigeria lost 8.1% of sales in the H2 of 2019, which was related to the September 2019 xenophobic attacks.

Meanwhile, Shoprite is not the only South African company that has recently announced exit from Nigeria. Nairametrics also reported that another South company,  Mr. Price, would be exiting Nigeria to focus on the South African market. Already, the company has closed 4 out of its 5 retail outlets in Nigeria.

Unfortunately, Nigeria’s ‘difficult’ business environment has been blamed for these major divestments.

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Shoprite, which has spent 15 years in Nigeria stated that customer visits for the year declined by 7.4% due to the pandemic lockdowns. It also noted that outside South Africa, sales only increased by 0.1%, and an overall decline in sales of 1.4% for the year.

“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” the update read in part.

Shoprite joins two other South African retailers, Mr. Price and Woolworths who have also announced exists from Nigeria due to a harsh operating environment.

What this means: Shoprite’s exit from Nigeria once again brings to the fore the challenges South African companies are facing in Africa’s largest economy as they try to replicate the successes of MTN.

  • Shoprite is a flagship retail outlet in Nigeria and has been the major anchor tenant for shopping mall developers in Nigeria.
  • With their exit, funding for the development of shopping malls in Nigeria could be in jeopardy as anchor tenants are the major drivers of mall constructions. However, the new owners, could sustain this drive and continue to expand beyond its current coverage locations.
  • The future for Shoprite and its employees will now depend on the ability of its South African parent company to find buyers.

 

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