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UBA is a HOLD for next week’s trading

@ubagroup Oando and Beta Glass all have a HOLD recommendation for next week’s trading on the Nigerian Stock Exchange.



Buy/Sell/Hold, Guaranty Trust Bank, Nigeria Stock Excahnge

Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers of the previous week as well as various analysts’ reports. 

Here are the picks for next week’s trading session.



Recent Results

 Results for the 2018 financial year show that gross earnings increased from N461 billion in 2017 to N464 billion in 2018. Profit before tax increased from N104.2 billion in 2017 to N106.7 in full-year 2018. UBA’s profit after tax also increased from N77.5 billion in 2017 to N78.6 billion.  

 Price Information 

Current Share Price: N6.45  

Price to Earnings Ratio: 2.93X 

Year to Date Return: -16.23% 

One Year Return: – 33.18% 

External Views

Analysts at FBNQuest have an ‘Overperform rating on the stockThey have a target price of N12.9, which represents a potential return of 107.4% from the stock’s price of N6.3as at when the report was prepared.  

Analysts at Afrinvest have a BUY rating on the stock. They have a 12-month target price of N13.09, which represents a potential upside of 111% from the stock’s price of N6.20 as at when the report was prepared.

GTBank 728 x 90

Our View 

UBA is a HOLD  in Nairametrics opinion. Though the stock is trading far cheaper than the average PE ratio on the Nigerian Stock Exchange, and lower than some of its tier one peers (Zenith Bank is trading at a PE ratio of 3.5 times earnings, Guaranty Trust Bank is trading at a PE ratio of 5.24 times earnings). 

The largely bearish sentiments on the Exchange, leave room for a further price decline. Year to date, the stock is down 16.2%, underperforming the NSE All-Share Index which is down 6.3%.  

 Beta Glass: HOLD 

Recent Results

 Results for the 2018 financial year show that revenue rose from N22.1 billion in 2017 to N26.3 billion in 2018. Profit before tax rose from N5.8 billion in 2017 to N7.1 billion in 2018. Profit after tax also rose from N4.1 billion in 2017 to N5 billion in 2018.  

Price information  

Current Share Price: N58.35 

Price to Earnings Ratio: 5.39X 

Year to Date Return: -14.57% 

One Year Return: -17.91%  

External View: None  

Our View 

Beta Glass is a HOLD in Nairametrics opinion. While the stock is trading at a price-earnings ratio slightly cheaper than the average PE ratio on the NSE (of 7.5 times earnings), the stock has shown bearish tendencies in recent times.  

The stock lost 18.9% last week and was one of the worst performing stocks. Negative sentiments on the NSE mean that the stock could decline further in the weeks to come.  


 Oando: HOLD 

Recent Results

Results for the 2018 financial year show that revenue increased from N497 billion in 2017 to N679 billion in 2018. Profit before tax from continuing operations fell from N20.7 billion in 2017 to N11.1 billion in 2018. Profit after tax, however, increased from N19.7 billion in 2017 to N28.7 billion in 2018.   


Price Information  

Current Share Price: N4.85  

Price to Earnings Ratio: 2.47X 

Year to Date Return: -3% 

One Year Return: -19.17%  

External View 


Our View 

Oando Plc is a HOLD in Nairametrics opinion. A hold opinion means that intending investors would be better off waiting for a further dip in price before taking positions 

On a fundamental basis, Oando still has some ways to go. The company has cut down its debt, and its sale of a residual stake in Axxela Limited (formerly Oando Gas and Power) will further lower it.

Investors with a significantly long term view wouldhowever, be better off when it is in a position to pay dividends before taking positions.  



Please consult a financial adviser before making an investment decision.


Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via

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Nigeria’s tier-1 banks earn N18.4 billion from account maintenance charges in Q1 2020

Banks’ earnings from account maintenance charges, though low when compared to other revenue streams, still make up a significant portion of their non-interest income.



Nigeria's banks, Account Maintenance Charges

Nigeria’s tier-1 banks — comprised of First Bank, UBA, GTBank, Access Bank, and Zenith Bank (FUGAZ) — generated a total of N18.4 billion from bank maintenance charges in Q1 2020. The sum is 17.12% more than N15.6 billion that was generated by the five banks during the comparable period in 2019.

This is according to recent checks by Nairametrics Research, a breakdown of which revealed that Zenith Bank generated the most income from account maintenance fees, followed by Access Bank and then, GTBank.


See the breakdown below.

  • Zenith Bank Plc: N5.7 billion
  • Access Bank Plc: N3.9 billion
  • Guaranty Trust Bank Plc: N3.3 billion
  • First Bank Plc: N3.1 billion
  • United Bank for Africa Plc: N2.3 billion

READ MORE: Stocktaking: Ebenezer Onyeagwu’s year as CEO of Zenith bank

What you should know about account maintenance charges

Banks’ earnings from account maintenance charges, though low when compared to other revenue streams, still make up a significant portion of their non-interest income.

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According to the latest directive by the Central Bank of Nigeria on bank charges, Nigerian banks are allowed to charge their customers a “negotiable” N1 per mille. What this means is that banks can charge N1 per N1000 debit transactions on current accounts. Banks’ account maintenance charges come in the form of COT (i.e., Commission on Turnover) which is a charge levied on customer withdrawals by their banks. In Nigeria, these charges are mainly applicable to current accounts.

“Current Account Maintenance Fee (CAMF): Applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. Note that CAMF is not applicable to Savings Accounts,” said part of the CBN directive.

(READ THIS: You must know these terms if you want to own a bank account in Nigeria)

Deal book 300 x 250

Customers don’t like account maintenance charges

Interestingly, a lot of Nigerian bank customers are not keen on bank maintenance charges. After all, nobody likes to get debit alerts, especially so when such is coming from their banks. Perhaps, the main reason some customers dislike bank maintenance charges is because they tend to be higher than the interest capitalised entitled to such customers. Professor Ayobami Ojebode of the Department of  Communications and Language Arts, University of Ibadan, recently complained about this, saying:

“Dear bank, I see o! Don’t think I don’t see you! You credit me N50 interest on my savings and debit N150 for account maintenance & card fee etc! Come here, what do you really think you are doing?”


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Company Results

Analysis: Is this a Lafarge rebirth?

Lafarge Africa Plc, one of the biggest building and concrete solutions companies in the world’s three biggest Achilles’ heels.



Lafarge Africa Plc, Analysis: Is this a Lafarge rebirth?

Lafarge Africa Plc, a unit of LafargecHolcim Group – one of the biggest building and concrete solutions companies in the world, has had a pretty long run in the construction sector. With projected growth in urbanization and inevitable population expansion, the leading producer of building materials and construction solutions has its stake in the huge Nigerian housing market. The company had served customers in Nigeria and South Africa (now discontinued) for decades, their customer base cutting across individuals requiring small building projects to major construction and infrastructure projects. All of these do well to place the company as an active participant in the economic growth of Africa.

Yet, so much has plagued the company in the past few years, curtailing its success with avoidable losses and below-par profits. While it, no doubt, has a series of challenges to worry about – like most organizations – three of its biggest Achilles’ heels had been its failing South African operations, its incessant changes in its corporate leadership, and of course, the one pandemic threatening to rip the global economy to shreds – COVID-19.


Lafarge South Africa

The company’s experience with its South African subsidiary gives credence to the phrase, “If anything is not serving you well, cut it off.” After years of dragging the African cement-maker down, the subsidiary was eventually spun off in July last year – not before it incurred a final loss of N3.2 billion in the first quarter of 2019. It was only after, when Lafarge restated its accounts by adjusting figures from the discontinued operations from its books, that the company set off on a positive growth trajectory.

Following the sale of Lafarge South Africa Holdings (LSAH) in Q3, there was a remarkable improvement in gross and operating margins, clearly showing that the sale of LSAH was valued accretive to shareholders. For one, the total debt reduced drastically. Short term loans and long term loans also had a drop of 79% and 75% respectively in comparison with the first quarter of last year. Other financial assets increased significantly from N1.7 billion in 2019 to N4.8 billion in Q1 2020. Also resulting from the sale was the increase in EPS from Q1 2019 of 0.36 to Q1 2020 of 0.93.

(READ MORE: Analysis: Total Nigeria needs a financial overhaul)

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Khaled El Dokani, CCEO of Lafarge Africa had stated, “Our turnaround and cost-reduction strategy in FY 2019 and the divestment of the South African business, have delivered strong results. The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.”

Lafarge Africa, Lafarge dismisses Alleged SEC probe , Analysis: Is this a Lafarge rebirth?

Its Changing Leadership

In 2018 alone, the firm appointed four directors in the space of three months. 9 months ago, in September, former CFO of Lafarge Africa Plc., Bruno Bayet, resigned.  Just a month later, the board had announced the appointment of Lolu Alade Akinyemi as the new CFO. Next, the group CEO, Michel Puchercos, also resigned leaving Khaled Abdelaziz El Dokani in charge. Even amidst the challenges of 2020, Jean-Philippe Benard resigned from being a Non-Executive Director in January 2020 and by April, the retirement of two Non-Executive Directors was announced, as well as the appointment of three new directors. The high turnover of its leadership means one (or both) of two things. The first is the possibility that there could be more than meets the eyes within the company and the second is the truth that the newer leadership will need time to adjust to the company’s operations before the wins.

Deal book 300 x 250


Just when things started looking up, COVID-19 came with all its challenges and it didn’t help that the first carrier of the virus – an Italian man, had been visiting Lafarge Africa’s factory in Ogun State. The loss in the demand for cement with the stalled construction activities will pose an additional challenge for the organization. In the performance summary released alongside the financials, the company had noted that the pandemic “will adversely affect the company’s results in Q2, 2020.” This is also coupled with the burgeoning competitive landscape with bigger brands like BUA and Dangote owning larger market shares.

While the company seems to be moving in the right direction, it might take a while for things to pick up. At its current price of N11.65 juxtaposed with its indicative dividend yield of 8.58%, the company could serve as an easy buy capable of yielding dividend income while investors wait patiently and hopefully for its wins to come.


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Prices of food items jump across Lagos markets, as traders lament transport fare hike

Covid-19 pandemic, high cost of transportation, and scarcity have triggered a significant price increase of major household items across Lagos Markets.



prices of food items, SBM Jollof Index, Smuggling of imported rice hits Lagos major markets, as residence brace for shutdown

As Nigerians continue to adjust to the “new normal” that has characterised the gradual easing of the nationwide COVID-19 lockdown, they are concerned about the significant increase in the prices of food items, particularly across Lagos markets. Meanwhile, traders have blamed the price jump on the high cost of transportation and scarcity of some essential food items.

These were all revealed in the latest household market survey carried out by Nairametrics Research. According to the latest report, the price of items such as beans, pepper, palm oil, onions, tomatoes, garri, and potatoes significantly increased. For instance, a big bag of pepper is currently sold for an average of N15,000, which indicates an increase of 114.3% when compared to the pre-lockdown price of N7,000.


Similarly, the price of a big bag of dry onions spiked by 30.77%, as it currently sells for an average of N17,000. In the same vein, a basket of sweet potatoes sells for an average of N15,000, marking a 150% increase when compared to N6,000 pre-lockdown price.

The rest of this report further highlights other items that witnessed a significant increase in price, items that recorded a decrease in price, items that maintained initial prices, special markets, and key market insights. Keep reading…

READ ALSO: Prices of tomatoes, frozen foods, onions, others jump, as low demand hits imported rice 

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Mile 12 market, Lagos

Items that witnessed price increase

Some of the items that recorded significant increase in price include:

• A 50kg bag of Royal Stallion rice currently selling for an average of N27,333, compared to an initial average of N26,167 recorded in March.
• A gallon of locally made palm oil (5 Litres) is currently sold for an average of N2,025, indicating a 22.73% increase compared to its initial price of N1,650. A 25-litre gallon of palm oil increased by 6.67% to sell for an average of N10,000 compared to N9,375.
• A 50kg bag of Mama Gold rice, which was initially sold for an average of N19,250 increased by 5.84% to an average of N20,375 while Mama’s Pride rice increased marginally to an average of N19,375.
• A 50kg bag of white beans, which was initially sold for an average of N18,250 in March, now sells for an average of N21,125. This indicates a 15.75% increase in price.
• Also, a big sized bag of brown beans recorded a 9.27% increase in price to sell for an average of N20,625 compared to an initial average of N18,875.
• An 80kg bag of garri (Ijebu) currently sells for an average of N13,000. This indicates a 94% increase compared to the initial average of N6,700 recorded in March.
• Also, a 50kg bag of white garri spiked by 50% to sell for an average of N11,250, while yellow garri (50kg) recorded 58.1% increase in price to sell for an average of N12,250 compared to a reference price of N7,750.
• A big basket of round shaped tomatoes, which was sold for an average of N5,500 in March, has risen significantly by 127.3% as it now sells for an average of N12,500.
• The price of fish also rose as a big sized Horse Mackerel (Kote) that was for an initial average of N525 is now sold for an average of N563, while Titus (Mackerel) fish is currently sold for an average of N575.
• A bag of yellow maize currently sells for an average of N14,000, compared to an average of N13,000 recorded in March, while a bag of white maize sells for an average of N13,750.

READ MORE: UPDATED: Nigeria’s inflation rate rises to 12.34% as COVID effects bite harder

Items that recorded decrease in price

Despite the increase recorded in the prices of major household food items, the prices of some items however declined.


• A 12.5kg cylinder of cooking gas is now being refilled for an average of N3,375. Indicating a 15.63% reduction in price from an average of N4,000 in March.
• Also, a 5kg cylinder of cooking gas is currently filled for an average of N1,375 compared to an average of N1,725 recorded in March.
• A big bag of melon seeds (egusi) currently sells for an average of 38,000. A 7.32% decrease in price compared to N41,000 recorded in March 2020.
• A tuber of yam is currently sold for an average of N1,250. Compared to initial value of N1,375. The price of yam reduced by 9.1% while a medium-sized tuber of Abuja yam currently sells for an average of N713.


READ ALSO: Household Survey: Palm Oil prices jack up as tomatoes and melon ease off

Items that maintained initial price

Household items that maintained their initial prices include milk, cocoa beverages, vegetable oil, and flour.

• A 400g of Peak Powdered milk (tin) continues to sell for an average of N1,213 while 900g still sells for an average of N2,375.
• 500g and 900g tins of Milo still sell for averages of N1,038 and N2,075 respectively across the four markets.
• 5-Litre and 25-Litre gallons of locally made vegetable oil maintained their initial prices at N2,200 and 12,575 respectively.

Special Items/Markets

• The Nairametrics Research team identified new brands of beans at the market  Gombe beans, which is sold for an average of N21,500 per bag, and Niger beans which sells for an average for N17,000.
• A big bag of dried bush mango seeds (Ogbono) is currently sold for average of N75,000 compared to an initial value of N90,000, while a bag of new bush mango seeds sells for N50,000 as against its initial value of N70,000.
• A bag of crayfish also recorded a decrease in price from an average of N15,000 to N12,500.

tomatoes market, Mile 12


Market Insights

The lockdown and hike in the cost of transportation triggered increases in the price of food items. This was disclosed by a frozen food trader at Mushin market. She said:

“Due to the hike in transportation, we now sell a full chicken for an average of N1,700 compared to an initial average of N1,400, while 1 kg of Turkey sells for N1,500 compared to N1,300 recorded in March 2020. Also, Chicken lap which was sold for N1,000 in March now sells for an average of N1,400, while a carton of Titus fish that was sold for N19,000 in March now sells for an average of N21,000.”

She further explained that due to the practice of social distancing, the cost of transportation has increased significantly, hence affecting the prices of many commodities in the market.

On his part, Mr. Ruwa, an onion seller at Mile 12 market, stated that the increase in the price of onions is due to the scarcity of the item which is produced mainly in Northern Nigeria. According to him, the price of onions rose significantly due to the scarcity of dry onions due to the season.

ItemsBrandUnitMUSHIN (28/05/2020)DALEKO (28/05/2020)OYINGBO (28/05/2020)MILE 12 (28/05/2020)Average MUSHIN (19/03/2020)DALEKO (19/03/2020)OYINGBO (19/03/2020)MILE 12 (19/03/2020)Average
Bag of RiceMama Gold10kgNA4000NANA4000NA3500NANA3500
Bag of RiceRoyal Stallion50Kg28000NA270002700027333.33333333327000NA270002450026166.666666667
Bag of RiceRice Master10kgNA3500NA40003750NA3500NA35003500
Bag of RiceMama Gold50kg20000200002100020500203751900019000195001950019250
Bag of RiceCaprice50kg280002700027500270002737526500NANA2500025750
Bag of RiceMama's Pride50kg19500190001950019500193751900019000195001950019250
Bag of BeansOloyin50kg13000125001300012500127501300012000130001200012500
Bag of BeansWhite50kg22000205002100021000211251850018000185001800018250
Bag of BeansBrown>50kg20500195002150021000206252050018000190001800018875
Tuber of YamAbuja1 Big Size Tuber1300120013001200125014001400130014001375
Tuber of YamAbuja1 Medium Size Tuber700700750700712.5750700750750737.5
Carton of NoodlesIndomie305g (Belle full)2900290029002900290029002900290029002900
Carton of NoodlesIndomie200g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2000220021002100210020002200210021002100
Carton of NoodlesMinimie70g1600165017001650165015001500150015001500
Carton of NoodlesGolden Penny70g1400140014001400140014001400140014001400
Bag of GarriIjebu80kg125001300012500140001300060006800700070006700
Bag of GarriWhite50kg110001150011500110001125070007500750080007500
Bag of GarriYellow50kg120001250012000125001225075007500750085007750
Basket of PotatoSweetBig Basket150001500060006000
Basket of PotatoSweetSmall Basket1000100010001000
Basket of PotatosweetSmallest Basket500500200200
Basket of PotatoIrishBiggest Basket20000200001700017000
Basket of PotatoIrishSmall Basket2000200018001800
Basket of PotatoIrishSmallest Basket1500150013001300
Packet of PastaGolden Penny500g4300440043004200430043004400430042004300
Packet of PastaDangote500g4000410042004100410040004000400041004025
Packet of PastaPower (1 pc)500g220220220220220220220220200215
Packet of PastaBonita (1 pc)500g220200200210207.5220200200210207.5
Gallon of Palm OilLocal5 Litres2100200020002000202518001500180015001650
Gallon of Palm OilLocal25 Litres10000950010000950010000100009000950090009375
Gallon of Vegetable OilLocal5 Litres2200220022002200220022002200220022002200
Gallon of Vegetable OilLocal25 Litres12600124001290012400125751260012400129001240012575
Gallon of Vegetable OilKings5 Litres3000300030003000300030003000300030003000
Gallon of Vegetable OilWesson5 Litres3900390039003900390039003900390039003900
Gallon of Vegetable OilMamador3.8 Litres25002450250024002462.525002450250024002462.5
Gallon of Vegetable OilPower3 Litres1800180018001800180018001800180018001800
Bunch of PlaintainPlaintain1 Big Bunch500400450500462.5400400350400387.5
Bag of FlourDangote50kg11200112001100011000111001120011200110001100011100
Bag of FlourHoney well50Kg11200112001120011200112001120011200112001120011200
Bag of FlourMama Gold50kg11000113001100011000110751100011300110001100011075
MilkPeak Powdered (Tin)400g12501200120012001212.512501200120012001212.5
Milkpeak Powdered(Tin)900g2400240024002300237524002400240023002375
MilkPeak milk (Refill)500g10501000100010001012.510501000100010001012.5
MilkDano Powdered (Tin)500g1000100010001000100010001000100010001000
MilkDano Powdered(Tin)900g2000200020002000200020002000200020002000
MilkDano (Refill)500g850800800800812.5850800800800812.5
MilkThree Crown (Refill)380g720700750700717.5720700750700717.5
MilkLoya Powdered (Tin)400g10001000100010501012.510001000100010501012.5
MilkLoya (Refill)400g850800850800825850800850800825
MilkCoast (Refill)500g750750750750750750750750750750
Cocoa BeveragesMilo (Tin)500g10001100105010001037.510001100105010001037.5
Cocoa BeveragesMilo (Tin)900g2000210021002100207520002100210021002075
Cocoa BeveragesMilo Refill500g900900900900900900900900900900
Cocoa BeveragesBournvita Refill500g95010009509009509501000950900950
Cocoa BeveragesBournvita (Plastic)900g2000200020002000200020002000200020002000
Cocoa BeveragesOvaltine Refill500g800800850850825800800850850825
Cocoa BeveragesOvaltine(Plastic)500g1100110010001100107511001100100011001075
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g310290300300300310290300300300
TeaTop tea52g300300300300300300300300300300
SugarSt' Loius Sugar(Cube) 500g500550550550537.5400380400450407.5
SugarGolden Penny Sugar (cube)500g350350350400362.5350300350300325
BreadVal-U1 loafNANANANANA370350350370360
BreadButterfield1 loaf350350350350350350350350350350
Bottled Water (Refill)CwayRefill600600650600612.5600600650600612.5
Juice5 Alive1 litre600550550600575600550550600575
JuiceChivita1 litre600550600550575600550600550575
TomatoesBig Basketround shaped125001250055005500
Medium Basketround shaped6500650032003200
Small Basketround shaped4000400020002500
Big BasketOval ShapedNANA
Small BasketOval ShapedNANA
FishKote (Horse Mackerel)1 big Fish550600550550562.5550500500550525
FishTitus (Mackerel)1 big Fish550600550600575500500550500512.5
PepperBig bag150001500070007000
Medium bag8000800050005000
MelonBig bag38000380004100041000
OnionsBig bagDry Onions17000170001300013000
OnionsBig bagNew OnionsNANA1100011000

READ ALSO: Bitcoin loses $1500 in 3 mins, pigs get slaughtered in BTC market

About Nairametrics Food Price Survey

The Nairametrics Food Price Watch is a bi-weekly household market survey that covers the prices of major food items, with emphasis on five major markets in Lagos – Mushin Market, Daleko Market, Oyingbo Market, Idi-Oro Market and Mile 12.

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