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ATM transactions rise marginally year on year September 2018




According to data from the Nigerian Inter-bank Settle System (NIBSS), the total number of Automated Teller Machines (ATMs) in Nigeria as at September, 2018 is 18,321. While the total number of transactions performed is 650.06 million, the transaction value is N4.76 trillion.

As of September 2017, the total number of ATMs across the country was 17,051, while the total number of transactions performed was 560.86 million and the transaction value was N4.61 trillion.

This interprets that compared to the total number of ATMs in 2018 there was an addition of 1,270 ATMs, thereby increasing the number of transactions performed by 89.20 million, and transaction value by N15 billion.

Numbers from previous years

Figures from the CBN, show as at September 2016 was 29.24 million,ATM transactions stood at N400 billion monthly and N4.2 trillion annually, and since then the use of ATMs has increased tremendously. Nigerians now rely on their ATM cards rather than carry cash around.

ATM history in Nigeria

For several decades, Nigeria as a predominant consuming society was not disposed to buying goods on credit or with credit cards. The norm has been to operate exclusively with cash. This approach seemed to be more conservative and members tend to think more carefully before spending their money.

Today, the tide has changed as many banks now extend credit cards to individuals, qualified customers, courtesy of automobile functional Automated Teller Machine systems.


The first ATM machine in Nigeria was installed by National Cash Registers (NCR) for the defunct Societe Generale Bank of Nigeria in 1987, and introduced into the Nigerian market in 1989.

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GSK in big trouble as losses mount

The results were less than impressive with several key indicators showing a year-on-year decline.



GSK Consumer Nigeria Plc records 3.34% increase in 2020 9M revenues.

GlaxoSmithKline Consumer Nigeria Plc (“GSK Plc” or “the Company”) is a public limited liability company with 46.4% of the shares of the Company held by Setfirst Limited and Smithkline Beecham Limited (both incorporated in the United Kingdom), and 53.6% held by Nigerian shareholders.

The ultimate parent and controlling party is GlaxoSmithKline Plc, United Kingdom (GSK Plc UK). The parent company controls GSK Plc through Setfirst Limited and SmithKline Beecham Limited.

The Company recently published its unaudited first quarter (Q1) 2021 consolidated financial statements for the period ended 31 March 2021.

READ: GSK Consumer Nigeria Plc records 3.34% increase in 2020 9M revenues

The results were less than impressive with several key indicators showing a year-on-year decline. For example, Group revenue (turnover) declined from ₦4.99 billion in Q1 2020 to ₦3.46 billion in Q1 2021 a drop of over 30.66%. The revenue drop was due to a sharp decline in the local sale of its healthcare products.

Total loss after tax as of Q1 2021 was ₦238.07 million compared to a profit after tax of ₦113.47 million for the same period to Q1 2020.

The company is essentially divided into two segments viz: Consumer Healthcare and Pharmaceuticals. While the Healthcare segment was largely profitable in Q1 2021 (making a profit before tax of ₦ 8.73 million by March 31, 2021, the pharmaceuticals segment made a loss of ₦262.93 million in the same period.

READ: GlaxoSmithKline Nigeria announces changes in its board


The Consumer Healthcare segment of the company consists of oral health products, digestive health products, respiratory health products, pain relievers, over the counter medicines, and nutritional healthcare; while the pharmaceutical segment consists of antibacterial medicines, vaccines, and prescription drugs. While goods for the consumer healthcare segment are produced in the country, the pharmaceuticals are all imported.

The largely imported pharmaceutical products are thus exposed to the vagaries of foreign currency fluctuations coupled with a negligible to no revenue from the foreign sale of its healthcare products (same as in Q1 2020) as it barely exports its products out of the country.

The cost of importing the antibacterial, vaccines and prescription drugs, and the significant local operating expenses wiped off the marginal gross profits made by the pharmaceutical segment of the company. In effect, the gross profit of ₦508.12 million made by the pharmaceutical segment of the company was eliminated by an operating expense of ₦735.7 million and this resulted in a net loss for the pharmaceutical segment of the business.

READ: Nigerian Breweries posts N7.66bn as Q1 2021 profit, shares gain 2.2%

Apart from the impact of imported pharmaceutical products as already discussed, other issues that affected the company’s Q1 2021 results and are likely to continue to affect its performance in future include:

  1. A limited product mix that has only the likes of Macleans and Sensodyne (Oral Healthcare); Pain relievers (Panadol and Voltaren); Digestive Health (Andrews Liver Salt); and Respiratory Health (Otrivin and Panadol Cold and Catarrh) all within the Consumer Healthcare segment.
  2. Increased competition, particularly from local pharmaceutical manufactures of similar over the counter medicines and other prescription medications and vaccines.

In addition, in October 2016, GSK Plc divested its drinks bottling and distribution business that manufactures and distributes Lucozade and Ribena in Nigeria, and other assets including the factory used for the drinks business to Suntory Beverage & Food Limited. The loss in revenue from these popular brands continues to impact its topline.

GlaxoSmithKline (GSK) is a global healthcare company and is well-known and acknowledged for its pioneering role in discovering and distributing vaccines for the likes of hepatitis A and B, meningitis, tetanus, influenza, rabies, typhoid, chickenpox, diphtheria, whooping cough, cervical cancer and many more.

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It is also renowned for its manufacture and distribution of prescription medicines such as antibiotics and treatments for such ailments as asthma, HIV/AIDS, malaria, depression, migraines, diabetes, heart failure, and digestive disorders.

Perhaps GSK Plc’s fortunes may change if the company is able to obtain the parent company’s licence to manufacture GSK-owned vaccines and prescription medicines within the country while also exploring the possibility of extending the sale of its products outside the shores of the country.

Since different expertise is required for vaccines and prescription drug manufacture and distribution as compared to manufacture and sale of consumer healthcare products, perhaps another alternative may be for the company to create two separate companies with one company being a 100% vaccines and prescription drug pharmaceutical manufacturing and distribution company while the second company specializes entirely in the manufacture and sale of consumer healthcare products.

As a result of the Q1 2021 performance, the company’s earnings per share (EPS) dropped to -20 kobo compared to the 9 kobo earnings per share reported in Q1 2020. At the start of 2021, GSK Plc’s share price was ₦6.90 but the company has since lost over 10% of its price valuation as the company’s share price closed at ₦6.20 on April 30, 2021.

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Is 5% returns on mutual funds enough? Here are 5 things you need to know this morning

2021 has been a slow year for mutual fund investors as the best performing fund could only return 4.87%



Last week was another interesting week with a series of activities and events making the rounds in the economy and markets. These events have an effect on your money, and we will be breaking down what it all means.

Joe Biden’s Tax Plans

Biden’s tax plans last week had a strong effect on the market and led to a sell-off in many asset classes – especially crypto. The rumours were that Treasury Secretary Janet Yellen wanted to institute an 80% crypto capital gains tax. The market did not react well to this with over $200 billion dollars lost in cryptocurrencies on Friday as a result.

President Biden plans to fund his ambitious infrastructural plan with the capital gains tax which targets people who earn over $1 million dollars a year.

Many investors are still bullish on the long-term with cryptocurrencies, perhaps this is a good time to ‘buy the dip’ and for those unaware, capital gain tax can only be applied when the asset is sold.

READ: Nigerians can now invest in more mutual funds

CBN vs Exporters

Last week, the CBN assured exporters of unhindered access to their dollar earnings. The backstory here is that the CBN had in January 2021, announced that all Nigerian exporters who are yet to repatriate their export proceeds, will be barred from banking services effective from January 31, 2021.

The exporters instead prefer to sell their forex to the parallel market where it can be exchanged for a higher naira value, boosting their gains on foreign currency conversions. They also avoid regulatory squabbles by opening foreign bank accounts where most of the export proceeds are warehoused and then sold at the black market.

READ: How to avoid paying excessive taxes in Nigeria


Nigerian Mutual funds take a 4% dip in Q1 2021

Mutual Funds are traditionally a good investment vehicle for many Nigerians. However, so far, 2021 has been a slow year for mutual funds as the net asset value of the funds declined by 4.01% from N1.57 trillion as of 31st December 2020 to N1.51 trillion as of 1st April 2021.

The highest return for the quarter stacked 4.87% and has a minimum investment of $2,500. However, the question is will investors be satisfied with this return especially with inflation heading to 20%. Considering this particular fund invests in debt instruments an almost 5% ROI should attract a number of investors.

READ: Best Nigerian Stocks in 2020 based on dividend yield

Bitcoin peer to peer trading surges 27% after CBN crypto ban

CBN’s restriction on banks facilitating cryptocurrency exchanges has enabled Nigerians to find other ways to buy crypto through P2P (peer to peer). Data reveals that Nigerians have moved over $103 million.

Cryptocurrency adoption in Nigeria is still on the rise and there seems very little the regulators can do about it. The Nigerian central bank is not the only regulator trying to control cryptocurrency adoption, last week, the CBRT (Central Bank Republic of Turkey) also announced a ban on cryptocurrency citing excessive volatility and lack of regulation.

Hyundai & Kia to set up an assembly plant in Ghana in 2022

Ghana has proven to be a prime investor location for Foreign Direct Investment in Sub-Saharan Africa. This announcement is just a few weeks after Twitter announced its plans to open its first African office in the country.

An official statement from Alan John Kyerematen, Ghana’s Minister of Trade and Industry reads “The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

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It has become more glaring that attracting investment into Nigeria is increasingly difficult due to regulatory uncertainties and macro factors.

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