Business News
Malaysian firm to invest $100m into Nigeria’s ICT Sector
Datasonic Group Berhard has unveiled plans to invest the sum of $100 million into Nigeria’s ICT sector with the aiming of improving technological services of the country.
A Malaysian ICT Firm, Datasonic Group Berhard has unveiled plans to invest the sum of $100 million into Nigeria’s ICT sector with the aim of improving technological services of the country.
This was revealed at the meeting between the top management of Datasonic and the Minister of Industry, Trade and Investment, Mr Niyi Adebayo.
The Details: Chief Executive Director, Datasonic, Mr Chew Ben, announced that the company proposed a multimillion-dollar ICT plan for the country in conjunction with the Chrome Group of Nigeria.
[READ: Employers are already after the laid-off Andela engineers]
Inside the Datasonic deal: The deal is expected to cover the production of secured passports, chip-based driver’s license, international passport, integrated security, surveillance systems, auto-gates with facial recognition systems which provide employment opportunities for Nigerian youths. Datasonic was poised to establish a world-class range of technology products in Nigeria within the next 24 months.
More investments for Nigeria: However, Datasonic is not the only company seeking partnership with Nigeria, Managing Director of Samsung Heavy Industries (SHI) Mr. Jejin Jeon said his firm was considering siting a vessel fabrication hub in the country, noted that the firm had invested about $500 million in the country in the last six years. He stated Samsung was eyeing business expansion and vessel fabrication in Nigeria.
[ALSO READ: Nigeria, others receive €1 billion from EU to make goods more attractive]
Minister reacts: Adeniyi Adebayo who closed the separate meetings with both the top management of Samsung Heavy Industries (SHI), Korea and Datasonic was elated that foreign firms sought to develop the country via the nature of their investments. He hoped that more priority would be given to Nigerian youths to rid them out of the unemployment. He promised to make conditions favourable for them to operate.
“It is also exciting that you are coming now at the beginning when we are trying to settle down in office so that you can be part of our plans. Our mandate is to give support whoever wants to come and provide these job opportunities as private investors.
“I can assure you that as you progress with your project, we have people in the ministry who will listen and see your areas of needs and how to work with you. We will ensure that we create an enabling environment for your businesses to thrive.”
What this means: One of the ways of reducing poverty is majorly through export and foreign investment because they play an increasingly large role in economic development. The decision of Samsung and Datasonic to invest in Nigeria will help to create jobs as well as improve the quality of human life.
[FURTHER READING: If you’re in your 20s & 30s, here are some ideal investments]
Financial Services
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.
The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.
This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.
The circular improved on the earlier provisions contained in section 7.3.1.5 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”
(READ MORE: Unity bank wants to be seen, but time is running low)
What this means
Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.
In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.
Why this matters
Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 7.3.1.5 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.
In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.
Business News
Nascon Allied Industries Plc: Increase in sale of goods boosts revenues
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating unit
Nascon Allied Industries Plc recorded a boost from an increase in the sale of goods revenue-generating units, as total revenues increased slightly. The company reported revenues of N21.87 billion in 2020 (9months) – 4.01% increase compared to N21.03 billion in the corresponding period of 2019.
READ: Focus on Aluminium Extrusion Industries Plc and its declining 2019 performance
What you should know
Key highlights from 2020 (9months) results
- Revenues increased by 4.01% from N21.03 billion to N21.87 billion YoY.
- Revenues from sale of edible, refined, bulk grade salt; seasoning and vegetable oil, increased to N21.87 billion, +22.53% YoY.
- Other income increased to N12.81 million, +27.43% YoY.
- No revenue was recorded for freight income on the deliveries of salt and seasoning income-generating unit.
- Gross profit increased to N8.96 billion, +74.56% YoY.
- Operating profit increased to N3.64 billion +18.60% YoY.
- Pre-tax profits increased to N3.47 billion, +16.63% YoY.
- Post-tax profits increased to N2.29 billion, +13.27% YoY.
- Earnings Per Share increased to 115 kobo, +12.75% YoY
- Total assets increased to N44.36 billion, +45.79% YoY.
- Total liabilities increased to N32.04 billion, +67.21% YoY.
- Total equity increased to N12.32 billion, +9.35% YoY.
(READ MORE:Dangote’s NASCON Allied Industries Plc moves operation from Apapa)
Bottomline
Nascon Allied Industries Plc recorded a boost from increase in sale of goods revenue-generating unit, but no revenue was recorded for its freight income on the deliveries of salt and seasoning revenue generating-unit.
READ: Food, Agro & Allied Industries set to export agri-products to New Zealand
Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19; Nascon Allied Industries Plc was able to increase its total revenues and pre-tax profits in the period under consideration.
READ: Nigeria Air: Domain name registration and N48 million controversy!
Tech News
Instagram disables its “Recent” feature
Instagram recently announced it had removed the “recent” tab from hashtag pages on a temporary basis
Instagram disclosed that it would remove the “Recent” tab from its hashtag pages for people in the United States of America.
The social networking and video sharing service stated this on its official Twitter handle. It said it is “doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.”
Starting today, for people in the U.S. we will temporarily remove the “Recent” tab from hashtag pages. We’re doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.
— Instagram Comms (@InstagramComms) October 29, 2020
What you should know
Nairametrics had reported on Instagram’s apology for its algorithm malfunction that led to the flagging of #EndSARS posts as fake.
Instagram has also taken the following measures to ensure a successful November election.
- The registration of 4.4 million votes this year through its flagship platform – Instagram and Messenger.
- Serving as a means of information and tool to people in the US on the electoral process
- The ban of any content that can thwart the success of the election.
(READ MORE:U.S dollar stable amid U.S holiday)
Mark Zuckerberg, the CEO of Facebook, said he was perturbed about the high risks for civil unrest in the US due to the upcoming presidential election.
“I’m worried that with our nation so divided and election results potentially taking days or weeks to be finalized, there is a risk of civil unrest across the country.”
Furthermore, he disclosed on a call while discussing Facebook’s Q3 earnings, that “given this, companies like ours need to go well beyond what we’ve done before.”
Why this matters
The aim of the short-term decision is to decrease the spread of misinformation in the forthcoming US election.
NITDA warns the public to beware of unsolicited mails
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
UACN Property Development Company Plc: Decrease in sale of property stock, others depletes revenue
Nascon Allied Industries Plc: Increase in sale of goods boosts revenues
Instagram disables its “Recent” feature
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