Nigeria’s foremost e-commerce powerhouse, Konga, has become the first e-commerce company in Sub-Saharan Africa to be migrated to the Retail Accelerator Programme of global technology giant —Intel.
The development was disclosed by Intel’s Consumer Manager for Nigeria, Olabanji Womiloju, who commended the efforts of Konga in elevating the e-commerce business in Nigeria.
On Konga achieving great feat: In a press statement that was issued exclusively to Nairametrics, Womiloju lauded the landmark strides being made at Konga. According to him, the company’s reputation and outstanding performance in the e-commerce space were the yardsticks used in selecting the company for the Retail Accelerator Programme.
Konga’s reaction: In his remark, the Co-Chief Executive Officer of Konga Group, Mr Nnamdi Ekeh, said the company is heading to the right direction in her strategies to change the e-commerce dynamics in Nigeria.
“We are very glad with the news of our elevation to the Intel Retail Accelerator Program. It shows that our efforts to revolutionize e-commerce in Nigeria and beyond is being noticed even beyond the shores of Africa.”
Benefit of the recognition: According to Ekeh, the partnership with Intel will afford the e-commerce company to meet the needs of its customers within and beyond the shores of Nigeria. It will also position Konga for more marketing support, in order to drive huge product volumes and sellout in a competitive market where the likes of Jumia also operates.
“This partnership will put us in a position to serve our numerous customers across Nigeria better with more exciting solutions across Intel’s wide-ranging bouquet. Furthermore, it calls for more work on our part in justifying the confidence reposed in us by taking e-commerce to greater heights.”
Konga’s elevation to the new retail channel program will take effect in the second quarter of 2019.
About Konga and its expansion drive
Konga Online Shopping Limited provides Internet-based services. The Company operates an online platform that serves a retail customer base that continues to grow exponentially, offering products that span various categories including Phones, Computers, Clothing, Shoes, Home Appliances, Books, healthcare, Baby Products, personal care and much more.
The company’s expansion drive birthed the merger with Yudala, which saw both companies become the biggest organised retail and e-commerce outfit on the African continent. The strategic decision also saw both companies leveraging their combined strengths, in a bid to further broaden the scope of organised retail and e-commerce in Nigeria, whilst delivering more value to customers and merchants.
Intel Corporation is an American software company which offers computing, networking, data storage, and communication solutions worldwide. It operates through Client Computing Group, Data Centre Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments.
IMF advises banks to suspend dividend payment
However, halting dividend payments may not go down well for many retail and institutional investors, who rely on bank dividends for regular income.
In an article published on its website, International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, advised banks to halt dividend payment for now. According to her, with the expectation of a deep recession in 2020 and partial recovery in 2021, banks’ resilience will be tested. Therefore, having in place strong capital and liquidity positions to support fresh credit will be essential.
According to the article, one of the steps needed to reinforce bank buffers is retaining earnings from ongoing operations which are not insignificant.
IMF staff calculate that the 30 global systemically important banks distributed about US$250bn in dividends and share buybacks last year.
In a circular dated January 31, 2018, the Central Bank of Nigeria (CBN) stipulated new conditions for eligibility of Nigerian banks to pay dividend and the quantum of dividend to be paid out by banks who are eligible. Prior to the release of the circular, dividend payout policy for Nigerian banks had been spelt out in Section 16(1) of BOFIA 2004 (as amended) and Prudential Guidelines for DMBs of 2010. The circular provided guidelines and restrictions around divdidend payout for banks based on NPL ratio, CRR levels, and Capital Adequacy Ratio (CAR).
However, there were no regulatory restriction on dividend payout for banks that meet the minimum capital adequacy ratio, have a CRR of “low” or “moderate” and an NPL ratio of not more than 5%. However, it is expected that the Board of such institutions will recommend payouts based on effective risk assessment and economic realities. Indeed, current economic realities demand caution.
Current economic realities mean that banks face asset quality threats, further devaluation threat which may impact capital in some cases, and lower profits which in turn affects the quantum of capital retained. Ideally, these should reflect in NPL ratio and CAR ratio and should immediately restrict banks’ ability to pay dividend. However, there is usually a time lag before these ratios begin to reflect the new economic realities. Therefore, IMF’s advise may come in handy for many banks.
That said, halting dividend payments may not go down well for many retail and institutional investors, who rely on bank dividends for regular income. Banks like Zenith and Guaranty Trust have a good history of consistent dividend payment with attractive yields which is a major attraction for many shareholders.
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CBN reduces MPR to 12.50%, holds other metrics
Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) from 13.50% to 12.50% and retains CRR at 27.5%, Liquidity ratio at 30%.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) from 13.50% to 12.50%.
Governor, CBN, Godwin Emefiele, disclosed this while reading the communique at the end of the MPC meeting on Thursday in Abuja. Meanwhile, other parameters such as the Cash Reserve Ratio (CRR) remained at 27.5%, Liquidity ratio at 30%.
Highlights of the Committee’s decision
- MPC cuts MPR by 100 basis points to 12.50%
- CRR stood at 27.5%
- The Liquidity Ratio was also kept at 30%
CBN MPC cuts policy rate by 100 basis points to 12.5 %, maintains other parameters constant.
— Central Bank of Nigeria (@cenbank) May 28, 2020
According to Emefiele, the decision of the MPC to reduce the Monetary Policy Rate was informed by the impact of the Covid-19 pandemic on the economy, increased inflationary pressure, restrictions in international trade and more.
He highlighted the decline in the nation’s GDP as well as the decline in the manufacturing and non-manufacturing purchasing index which were attributable to slower growth in production, rate of unemployment, amongst others.
Just in: Buhari seeks approval from green chamber to borrow fresh $5.5billion
FG also seek approval for the revised 2020-2022 mid-term expenditure framework (MTEF) which became necessary as a result of the crash in crude oil prices and the cut in the production output.
President Muhammadu Buhari is seeking the approval of the House of Representatives to borrow fund to finance capital projects at the federal and state (to support state governors) levels in the 2020 budget.
This request was disclosed via the official twitter handle of the House of Representatives.
The president’s letter, which indicated that the fund would be sourced locally and internationally, was read on the floor of the House of Representatives by the Speaker, Femi Gbajabiamila, during plenary on Thursday, May 28, 2020.
In the letter to the lower chamber, Buhari, is also seeking the approval for the revised 2020-2022 mid-term expenditure framework (MTEF) which became necessary as a result of the crash in crude oil prices and the cut in the production output.
Although the tweet did not contain the total amount of loan that is being requested, reports suggests that the President is seeking approval to borrow the sum of $5.513 billion from external sources to finance 2020 budget deficit and support state governments to meet challenges caused by the coronavirus pandemic.
President @Mbuhari is also seeking the House approval to borrow locally & internationally to finance capital projects as well as finance projects to support state governors in the 2020 budget
The letter was referred to the House Committee on loans & debt management. #HousePlenary
— House of Reps NGR (@HouseNGR) May 28, 2020