The Receiver Manager, Arik Air, Oluseye Opasanya has refuted a report that the airline company is struggling to find investors for Arik Air two years after the Asset Management Corporation of Nigeria (AMCON) took over and placed the airline operator up for sale.
Opasanya in a statement queried the ThisDay report, stressing the publication lacked fact and interspersed with half-truth which are meant to downplay the effort of AMCON to attract investors since its intervention in Arik Air.
ThisDay had reported that no investor has indicated interest to acquire Arik Air, backing the claims with anonymous sources. The report also noted that substantial revenue generated by the airline was allegedly being spent on foreign trips of the management personnel, emoluments, and other allowance.
Opasanya stated the report was falsely written and misleading. In the statement, the Receiver Manager disclosed that the facts are readily available to defend the improvement of Arik Air under AMCON, arguing the airline company has performed better than the pre-AMCON period.
Arik Air performance in pre-AMCON period
Opasanya said the decision by AMCON to appoint a Receiver Manager (RM) and new management team on February 9, 2017, prevented Arik Air from imminent collapse, as the airline had its assets abandoned around the world, with the maintenance hangar littered with unserviceable aircraft and related equipment, while Arik Air was struggling with only eight serviceable aircraft.
“Even some of the serviceable aircraft were due for various checks. Staff were owed between four to six months’ salary and staff morale was at the lowest ebb. Fleet insurance was due and the airline basically struggled to pay the premium. Vendors were owed colossal amount of trade debts to the extent that no oil marketer was willing to advance trade credit to the airline.
“The former management found it extremely difficult to pay for fuel and as a result flight cancellation was rife, on-time performance (OTP), which is a measure of an airline’s ability to meet scheduled flight time plummeted leading to significant customer attrition and loss of confidence. Furthermore, regulatory agencies were owed incredulous amounts of money and by way of example, passenger service charges impressed with trust collected on behalf of the government had not been remitted for several years.
“So also were huge sums of money deducted from workers’ salaries over many years which were not remitted to Pension companies. The flying public was equally owed several millions of Naira and foreign currencies on account of unflown tickets and cancelled flights.”
Arik Air under AMCON
According to the statement, business started picking up in Arik Air after the appointment of the Receiver Manager and new management team. Before AMCON’s intervention, the On-time Performance (OTP) had fallen to 19%, but after the takeover, the OTP climbed up steadily and currently averages 63.5%, while cancellations, which were as high as 40% as at January 2017, has been significantly reduced to less than 4%. Average load factor is currently over 73% whilst aircraft utilisation has also increased by about 50%.
Search for investors
Due to the resurgence of Arik Air under AMCON, local and foreign investors are showing interest in the airline operator. Opasanya added that past attempts to resolve the debt issue with legacy shareholders have been frustrated by their insincerity exemplified by the presentation of fake and bogus investment proposals (false financial backing), confirming the lack of corporate governance and diligence in their approach to business.
CBN reduces MPR from 12.5% to 11.5%
The Governor of the CBN has announced the reduction of MPR from 12.5% to 11.5%.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to reduce the Monetary policy rate (MPR) from 12.5% to 11.5%. This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday.
The committee retained CRR at 27.5% stating that the recent inflationary pressures is not driven by monetary policies, rather as a result of structural policies.
Highlights of the Committee’s decision
- Reduce the MPR by 100 basis points from 12.5% to 11.5%
- Adjust asymmetric corridor from +200/-500 to
- Retain CRR at 27.5%
- retain liquidity ratio at 30%
Explore the Nairametrics Research Website for Economic and Financial Data
More details shortly …
FG moves to clamp down on illegal fertilizer manufacturers and agro-dealers
It is now forbidden for anyone to go into fertilizer business in Nigeria, without registering with the FISSD.
The Federal Ministry of Agriculture and Rural Development has disclosed that anyone caught producing or merchandising adulterated fertilizers, under the new law, will be jailed.
This disclosure was made via the Ministry’s official Twitter handle, to the general public, and seen by Nairametrics.
The announcement notifies the general public that the National Fertilizer Quality Control (NFQC) Act 2019, is to make sure that every farmer has good and efficient fertilizer for their farms, to boost farming harvest and output.
The ministry reiterated that it is forbidden for anyone to go into fertilizer business in Nigeria, without registering with the Farm Inputs Support Services Department (FISSD) of the Federal Ministry of Agriculture and Rural Development. However, anyone caught producing or merchandising adulterated fertilizers will be jailed.
VIDEO: FG Moves to Clamp Down on Illegal Fertiliser Producers/Manufacturers, Blenders, Importers, and Agro-dealers. 1/4 pic.twitter.com/YVSykNpJ2R
— Fed Min of Agric/RD (@FmardNg) September 22, 2020
This regulation is to address the recurring issues of the effect of substandard fertilizers on farm produce, and the market proliferation of adulterated fertilizers in the country, which continues to bedevil farm outputs and harvests in the country.
Backstory: On the 26th of August, the Permanent Secretary of Agriculture and Rural Development, Dr. Abdulkadir Mu’azu, reaffirmed the Federal Government’s commitment towards implementing the National Fertilizer Quality Control (NFQC) Act 2019. He ensured that the fertilizer regulatory system is in place, to safeguard the interest of the farmers, as when the regulation is implemented, it will protect farmers from using adulterated fertilizers that are nutrient deficient.
Why this matters
This policy is important to safeguard both the interest of the farmers and the members of the public, as the initiative is expected to increase agricultural harvest and productivity, in a bid to make national food security a reality.
The NFQC Act will safeguard interests of fertilizer enterprises, businesses and agro–dealers, as it will create part of the enabling environment for private sector investment in the fertilizer industry, and protect the environment against potential dangers, that may result from market proliferation of adulterated fertilizers and the use of harmful substances in fertilizer.
The Executive Secretary of FEPSAN, Mr. Gideon Negedu, reiterated that the new National Fertilizer Quality Control Act 2019, is a game-changer for the nation’s agricultural sector and a powerful weapon for the farmers.
In his view, Prof. Yemi Akinseye–George (SAN), said, “that the Federal Government and relevant stakeholders of the fertilizers industry, have taken the bull by the horn in enacting a robust legal framework for quality control in the country.”
NSE highlights retail investment opportunities in today’s Nigerian Capital Market
The Exchange in collaboration with the NISL has inaugurated the Retail Investors’ Webinar.
The Nigerian Stock Exchange (“NSE” or “The Exchange”) has expressed its commitment to redefining and improving investors’ overall experience in the Nigerian capital market, and ensuring that it remains modern, convenient and secure. This was highlighted at the inaugural edition of the Retail Investors’ Webinar hosted by The Exchange in collaboration with the Nigerian International Securities Limited (NISL) on Monday, 21 September 2020. The event, with the theme, Capital Market Investing in a Digital Age, was supported by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).
Speaking during the webinar, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON said, “Investor participation is central to the growth and sustainable development of any economy. The Exchange is, therefore, committed to facilitating conversations that will expound on the retail investment opportunities available in the capital market and the channels through which they can be accessed. Today, our determination to develop the market and strengthen investor confidence has birthed a number of technology-driven solutions that allow investors to conveniently trade electronically in an increasing array of product offerings that includes Equities, Bonds, ETFs and other Collective Investment Schemes. We will, therefore, continue to take advantage of the vast opportunities to equip existing and potential investors with the necessary skills to effectively manage and grow the financial resources at their disposal.”
On his part, the Managing Director, Nigerian International Securities Limited (NISL), Mr. Laolu Martins said, “NSE has consistently pioneered far-reaching innovations within the Nigerian capital market, positively driving market integrity, boosting both investor confidence and market participation.” He went on to highlight the efforts of the NISL to create wealth for investors via an appropriate mix of securities using well spelt out market research to help investors meet their financial objectives. In doing so, he provided an analysis of the investment instruments available on NSE including equities, bonds, REITS, Closed-Ended Funds, ETFs, etc.
The event also featured a presentation on the importance of Market Data in making investment decisions by the Head, Market Services, NSE, Mr. Olufemi Balogun. It would be recalled that The Exchange recently released an upgrade to its X-DataPortal. The revamped portal has been designed to serve as a principal source for brokers, fund managers, research analysts, other professionals and non-professional participants like students and investors to get quality real-time and reference data reports for analysis, research and reporting purposes. Mr. Balogun encouraged investors at the webinar to access the information via https://dataportal.nse.com.ng.
The Exchange has showed its clear determination to ensure that investors have a better understanding and appreciation of investment products offered in the Nigerian capital market in its efforts to become Africa’s preferred Exchange hub. The upswing in market activities in Q2:2020 is a testament to the resilience of the market as a result of concerted efforts of The Exchange. As at the end of August 2020, the NSE All Share Index had recorded an 18.9% increase from its position at the end of March, 2020. In addition, the market also witnessed a growth in the percentage value of equity transactions contributed by retail investors, currently at 29% from the 21.8% recorded in 2018 and 24.72% recorded in 2019.