Business News
Convicted former UBS Group stock trader now plans to redefine Ghana’s mortgage industry
Kweku Adoboli said he has a plan to start what he described as Ghana’s “mortgage-backed bond market”.
About a year after he was convicted and subsequently deported to Ghana for illegally trading away the whopping sum of $2.3 billion, Kweku Adoboli said he has a plan to start what he described as Ghana’s “mortgage-backed bond market”.
The 39-year old former stock trader at UBS Group AG disclosed this during a rare interview with Bloomberg. According to him, part of his plan with the new platform is to help Ghana to avert a housing crisis in the future when the country’s population is expected to increase.
Kweku Adoboli
“Our job now is to look for ways to expand banks’ balance sheet, to create a mortgage market that would allow us to increase demand-side funding for housing… What are you going to do in 30 years time when our population doubles?”
Interesting estimates: According to Adoboli, the platform he is setting up has the potential to accumulate about “$100 million in mortgage-backed securities” in just one year after it commences. He said banks could be asked to join as shareholders.
The former UBS Group employee is reportedly confident in the workability of his plan. He told Bloomberg that a feasibility study conducted by him and his unnamed business partners discovered that some 2.5 million Ghanaian households have the capacity to afford a $50,000 home loan.
[READ MORE: Cooperative Mortgage Bank seals N8 billion housing deal with Shell CITS)
Packaging mortgages into securities and selling the same to investors could also enable banks to concentrate on the important task lending to the real sector of the Ghanaian economy.
In the meantime, the journey may not be all smooth for the University of Nottingham graduate who admitted to suffering depression after being deported to Ghana by UK authorities.
One of the immediate challenges he could face with the new venture is the issue of acceptability. Much like Nigeria, the mortgage is usually not the first option for most homeowners. Bloomberg rightly noted that many of the homeowners in the West African country prefer to buy their own lands and build their homes slowly over time.
Ghana’s capital markets are also relatively new and may not have the same structural capacities, which Adoboli is used to working within the UK. For Ghanaian banks that have just recently come out of a banking crisis, interest rates have been described as high. All these are challenges that could impede on Adoboli’s plan.
To catch up on Adoboli’s story and how he went from a UK top banker to an unusual entrepreneur in Ghana, check out our archives here.
Energy
NNPC says it does not plan to increase ex-depot price of petrol
The NNPC has said that it has no plans to increase the ex-depot price of petrol in March 2021.
Coronavirus
COVID-19 Update in Nigeria
On the 28th of February 2021, 240 new confirmed cases and 2 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 155,657 confirmed cases.
On the 28th of February 2021, 240 new confirmed cases and 2 deaths were recorded in Nigeria.
To date, 155,657 cases have been confirmed, 133,768 cases have been discharged and 1,907 deaths have been recorded in 36 states and the Federal Capital Territory.
A total of 1.49 million tests have been carried out as of February 28th, 2021 compared to 1.44 million tests a day earlier.
COVID-19 Case Updates- 28th February 2021,
- Total Number of Cases – 155,657
- Total Number Discharged – 133,768
- Total Deaths – 1,907
- Total Tests Carried out – 1,489,103
According to the NCDC, the 240 new cases are reported from 13 states- Anambra (85), Lagos (82), Osun (17), Ogun (10), Kwara (9), FCT (8), Kano (7), Abia (6), Ekiti(5), Borno (4), Edo (2), Bayelsa (2) Kaduna (2) and Rivers(1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 55,646, followed by Abuja (19,115), Plateau (8,854), Kaduna (8,422), Oyo (6,708), Rivers (6,398), Edo (4,491), Ogun (4,277), Kano (3,716), Ondo (2,944), Kwara (2,875), Delta (2,539), Osun (2,326), Nasarawa (2,208), Gombe (2,031), Katsina (2,029), Enugu (1,998), Ebonyi (1,839), Anambra (1,615), and Abia (1,487).
Imo State has recorded 1,440 cases, Akwa Ibom (1,439), Borno (1,247), Bauchi (1,221), Benue (1,188), Niger (912), Ekiti (797), Sokoto (768), Bayelsa (767), Adamawa (762), Taraba (712), Jigawa (496), Kebbi (358), Yobe (268), Cross River (267), Zamfara (219), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.
Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.
On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
Consumer Goods
NSE CGI depreciates by 8% in February, recording highest decline since March 2020
The NSE Consumer goods index shed a total of 49.84 index points in February, the highest loss on the index since March 2020.
The Nigerian Stock Exchange Consumer Goods Index (CGI), an index that tracks the performance of consumer goods companies, depreciated by 8.12% in the month of February at the back of sell-offs and building negative sentiments in the market.
A preview of the performance of the index revealed that as of the close of trading activities on Friday 26th February 2021, the index stood at 563.85 index points, from 613.69 index points at the open of trade for the month.
In line with this, the Consumer Goods Index shed a total of 49.84 index points – the highest since March 2020 (-132.53 index points)- as wary investors offload shares of top consumer goods company on NSE, leading to the decline in the share price of Nestle, Dangote Sugar, Flour Mills, NB and eight (8) others.
Source:Tradingview
What you should know
- The NSE Consumer goods Index was designed to provide an investable benchmark to capture the performance of companies in the consumer goods sector. The index comprises the most capitalized and liquid companies in food, beverage, and tobacco.
- The index is based on the market capitalization methodology, as it tracks the performance of fifteen consumer goods companies on the Nigerian Stock Exchange which includes, Nestle, Nigerian Breweries (NB), Dangote Sugar, and Flour Mills.
- The overall performance of the companies was bearish, as the index closed on a negative note in the month of February with 12 losers relative to 3 gainers.
- NNFM (-27.48%) led the losers’ chart, while MCNICHOLS (+56.86%) was the top gainer in the month of February, followed by GUINNESS (+21.32%).
Top gainers
- MCNICHOLS up 56.86% to close at N0.8
- GUINNESS up 21.32% to close N23.05
- UNILEVER up 0.74% to close at N13.95
Top losers
- NNFM down by 27.48% to close at N7.02
- VITAFOAM down by 22.89% to close at N7.75
- CHAMPION down by 18.97% to close at N2.52
- NB down by 17.46% to close at N52
- FLOURMILLS down by 16.86% to close at N28.85
