The cinema industry is relatively new in Nigeria. But it is one that hit the ground running from day one. Now, many Nigerians have imbibed the cinema culture and fill up cinema houses on the opening weekends of blockbuster movies.
One of the cinema companies that made this possible is Filmhouse Cinemas, which was established in 2012 and has since grown to have cinemas located in big cities across the country.
Meet the founder…
On Nairametrics‘ founder’s profile this week, we bring to you Moses Babatope, the co-founder of Filmhouse Cinemas and FilmOne Distribution and Production Company. Babatope is one of the leading stakeholders in Nigeria’s cinema and film distribution industries. He is also a known writer and movie producer. With his business ventures, Babatope is not just addressing the needs of movie enthusiasts, he is also committed to delivering returns for filmmakers in the country.
Co-founding Filmhouse and FilmOne
Both FilmOne and Filmhouse Cinema were co-founded by Babatope in December 2012. Ever since then, the companies have been major players in the Nigerian film industry. Filmhouse Cinema specialises in cinema operations. It manages and owns cinema locations all over the country (about 10 of them). It also designs, and consults for cinema projects.
The cinema company is big on technology and takes pride in its digital projection systems across all its cinemas, including its High Frame Rate cinemas.
On the other hand, FilmOne Distribution and Production Company is an independent distributor and producer of filmed entertainment which provides top-end film release services, mainly in Nigeria.
FilmOne’s debut project “Half Of a Yellow Sun” was released in 2014. It is pertinent to note that the company also distributed “30 Days In Atlanta,” a movie which was declared the highest grossing film of all time in Nigerian cinemas in 2015.
Early Life and Education
Babatope hails from Ilesa, Osun State, Nigeria, but he is also a naturalised citizen of Great Britain. Prior to the naturalisation, the movie entrepreneur attended Iyaniwura Nursery and Primary School Ilupeju, Lagos between 1988 and 1993. He then went on to have his secondary school education at Home Science Association Secondary School in Lagos between 1993 and 1999.
In the same year he graduated from secondary school, Babatope enrolled in Babcock University, to study Economics before transferring to Middlesex University Business School, where he completed his Bachelor’s degree in Money Banking and Finance in 2003.
He continued his education at Middlesex University Business School, with a Master’s degree in International Finance and graduated with a Merit in 2005.
His Career Milestones
Babatope has cognate experience of over 20 years in cinema operations management, film production, and film distribution. His experience cuts across several locations in the world, including Nigeria and the UK.
Babatope started his professional career from Odeon Cinemas Group, where he worked for almost a decade. He started in November 2003 as a team leader in the company. In August 2005, he became a Cinema Manager in the same company. Thereafter, in 2009, he became a Special Project Manager in the company and finally left in June 2013.
Prior to his resignation from Odeon Cinemas Group, Babatope co-founded Talking Drum Entertainment Limited, a UK-based film distribution company that specialises in black film and TV content.
After co-founding a film distribution firm abroad, Babatope felt the need to tap into the numerous opportunities in Nigeria’s film industry. That’s how he co-founded Filmhouse Distribution and Production Company and Filmhouse Cinemas.
Having produced Taxi Driver, The Wedding Party, amongst other box office smash hits, Babatope has a proven track record of promoting black films on the global stage.
Being one of the very few major players in Nigeria’s filmmaking industry, Babatope has toured beyond the shores of Nigeria, and Africa at large, delivering speeches and lectures on theatrical distribution at prestigious events like the African International Film Festival and Film Africa Festival.
In November 2018, Babatope was recognised as the ‘Entrepreneur of the Year’ by Harvard Business School Association of Nigeria.
Moses Babatope is married to Margaret Babatope whom he once described as a supportive wife. Their marriage is blessed with two sons.
[KEEP READING: Valentine Ozigbo, The village boy who became a world-class CEO]
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 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
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.
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.
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?”
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, 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.
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.”
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.
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.
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.
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…
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.
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.
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.
• 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.
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.
|Items||Brand||Unit||MUSHIN (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 Rice||Basmati||5kg||NA||NA||NA||NA||NA||NA||NA||NA||NA||NA|
|Bag of Rice||Mama Gold||10kg||NA||4000||NA||NA||4000||NA||3500||NA||NA||3500|
|Bag of Rice||Royal Stallion||50Kg||28000||NA||27000||27000||27333.333333333||27000||NA||27000||24500||26166.666666667|
|Bag of Rice||Rice Master||10kg||NA||3500||NA||4000||3750||NA||3500||NA||3500||3500|
|Bag of Rice||Mama Gold||50kg||20000||20000||21000||20500||20375||19000||19000||19500||19500||19250|
|Bag of Rice||Caprice||50kg||28000||27000||27500||27000||27375||26500||NA||NA||25000||25750|
|Bag of Rice||Mama's Pride||50kg||19500||19000||19500||19500||19375||19000||19000||19500||19500||19250|
|Bag of Rice||Falcon||25kg||NA||NA||NA||NA||NA||NA||NA||NA||NA||NA|
|Bag of Beans||Oloyin||50kg||13000||12500||13000||12500||12750||13000||12000||13000||12000||12500|
|Bag of Beans||White||50kg||22000||20500||21000||21000||21125||18500||18000||18500||18000||18250|
|Bag of Beans||Brown||>50kg||20500||19500||21500||21000||20625||20500||18000||19000||18000||18875|
|Tuber of Yam||Abuja||1 Big Size Tuber||1300||1200||1300||1200||1250||1400||1400||1300||1400||1375|
|Tuber of Yam||Abuja||1 Medium Size Tuber||700||700||750||700||712.5||750||700||750||750||737.5|
|Carton of Noodles||Indomie||305g (Belle full)||2900||2900||2900||2900||2900||2900||2900||2900||2900||2900|
|Carton of Noodles||Indomie||200g (Hungry man)||3200||3200||3200||3200||3200||3200||3200||3200||3200||3200|
|Carton of Noodles||Chikki||100g||2000||2200||2100||2100||2100||2000||2200||2100||2100||2100|
|Carton of Noodles||Minimie||70g||1600||1650||1700||1650||1650||1500||1500||1500||1500||1500|
|Carton of Noodles||Golden Penny||70g||1400||1400||1400||1400||1400||1400||1400||1400||1400||1400|
|Bag of Garri||Ijebu||80kg||12500||13000||12500||14000||13000||6000||6800||7000||7000||6700|
|Bag of Garri||White||50kg||11000||11500||11500||11000||11250||7000||7500||7500||8000||7500|
|Bag of Garri||Yellow||50kg||12000||12500||12000||12500||12250||7500||7500||7500||8500||7750|
|Basket of Potato||Sweet||Big Basket||15000||15000||6000||6000|
|Basket of Potato||Sweet||Small Basket||1000||1000||1000||1000|
|Basket of Potato||sweet||Smallest Basket||500||500||200||200|
|Basket of Potato||Irish||Biggest Basket||20000||20000||17000||17000|
|Basket of Potato||Irish||Small Basket||2000||2000||1800||1800|
|Basket of Potato||Irish||Smallest Basket||1500||1500||1300||1300|
|Packet of Pasta||Golden Penny||500g||4300||4400||4300||4200||4300||4300||4400||4300||4200||4300|
|Packet of Pasta||Dangote||500g||4000||4100||4200||4100||4100||4000||4000||4000||4100||4025|
|Packet of Pasta||Power (1 pc)||500g||220||220||220||220||220||220||220||220||200||215|
|Packet of Pasta||Bonita (1 pc)||500g||220||200||200||210||207.5||220||200||200||210||207.5|
|Gallon of Palm Oil||Local||5 Litres||2100||2000||2000||2000||2025||1800||1500||1800||1500||1650|
|Gallon of Palm Oil||Local||25 Litres||10000||9500||10000||9500||10000||10000||9000||9500||9000||9375|
|Gallon of Vegetable Oil||Local||5 Litres||2200||2200||2200||2200||2200||2200||2200||2200||2200||2200|
|Gallon of Vegetable Oil||Local||25 Litres||12600||12400||12900||12400||12575||12600||12400||12900||12400||12575|
|Gallon of Vegetable Oil||Kings||5 Litres||3000||3000||3000||3000||3000||3000||3000||3000||3000||3000|
|Gallon of Vegetable Oil||Wesson||5 Litres||3900||3900||3900||3900||3900||3900||3900||3900||3900||3900|
|Gallon of Vegetable Oil||Mamador||3.8 Litres||2500||2450||2500||2400||2462.5||2500||2450||2500||2400||2462.5|
|Gallon of Vegetable Oil||Power||3 Litres||1800||1800||1800||1800||1800||1800||1800||1800||1800||1800|
|Bunch of Plaintain||Plaintain||1 Big Bunch||500||400||450||500||462.5||400||400||350||400||387.5|
|Bag of Flour||Dangote||50kg||11200||11200||11000||11000||11100||11200||11200||11000||11000||11100|
|Bag of Flour||Honey well||50Kg||11200||11200||11200||11200||11200||11200||11200||11200||11200||11200|
|Bag of Flour||Mama Gold||50kg||11000||11300||11000||11000||11075||11000||11300||11000||11000||11075|
|Milk||Peak Powdered (Tin)||400g||1250||1200||1200||1200||1212.5||1250||1200||1200||1200||1212.5|
|Milk||Peak milk (Refill)||500g||1050||1000||1000||1000||1012.5||1050||1000||1000||1000||1012.5|
|Milk||Dano Powdered (Tin)||500g||1000||1000||1000||1000||1000||1000||1000||1000||1000||1000|
|Milk||Three Crown (Refill)||380g||720||700||750||700||717.5||720||700||750||700||717.5|
|Milk||Loya Powdered (Tin)||400g||1000||1000||1000||1050||1012.5||1000||1000||1000||1050||1012.5|
|Cocoa Beverages||Milo (Tin)||500g||1000||1100||1050||1000||1037.5||1000||1100||1050||1000||1037.5|
|Cocoa Beverages||Milo (Tin)||900g||2000||2100||2100||2100||2075||2000||2100||2100||2100||2075|
|Cocoa Beverages||Milo Refill||500g||900||900||900||900||900||900||900||900||900||900|
|Cocoa Beverages||Bournvita Refill||500g||950||1000||950||900||950||950||1000||950||900||950|
|Cocoa Beverages||Bournvita (Plastic)||900g||2000||2000||2000||2000||2000||2000||2000||2000||2000||2000|
|Cocoa Beverages||Ovaltine Refill||500g||800||800||850||850||825||800||800||850||850||825|
|Tea||Lipton Yellow label||52g||310||290||300||300||300||310||290||300||300||300|
|Sugar||St' Loius Sugar(Cube)||500g||500||550||550||550||537.5||400||380||400||450||407.5|
|Sugar||Golden Penny Sugar (cube)||500g||350||350||350||400||362.5||350||300||350||300||325|
|Bottled Water (Refill)||Cway||Refill||600||600||650||600||612.5||600||600||650||600||612.5|
|Juice||5 Alive||1 litre||600||550||550||600||575||600||550||550||600||575|
|Tomatoes||Big Basket||round shaped||12500||12500||5500||5500|
|Medium Basket||round shaped||6500||6500||3200||3200|
|Small Basket||round shaped||4000||4000||2000||2500|
|Big Basket||Oval Shaped||NA||NA|
|Small Basket||Oval Shaped||NA||NA|
|Fish||Kote (Horse Mackerel)||1 big Fish||550||600||550||550||562.5||550||500||500||550||525|
|Fish||Titus (Mackerel)||1 big Fish||550||600||550||600||575||500||500||550||500||512.5|
|Onions||Big bag||Dry Onions||17000||17000||13000||13000|
|Onions||Big bag||New Onions||NA||NA||11000||11000|
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.