Article summary
- This is a summary of the major corporate announcements that dominated the headlines during the week ending April 22, 2023.
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Have you ever asked yourself what the best companies to work for in Nigeria are? Well, LinkedIn answered that question last week with the release of its ranking of the top 25 best companies for workers. We reported that and shall now begin our Corporate News Roundup with that story. Enjoy.
Best Nigerian companies for workers
Last week, LinkedIn unveiled a list of the top 25 best Nigerian companies to work for in 2023. Nairametrics reported that the companies were rated based on factors such as employees’ progress and the companies’ upskilling approaches. Other factors such as attrition and layoff rates were also considered, as companies with more than 10% attrition rate and those that laid off more than 10% of their workforce could not make the list.
That said, the top 25 best Nigerian companies for workers in 2023 are- Ernest & Young, MTN Nigeria, Sterling Bank, Interswitch Group, British American Tobacco (BAT), and Nestlé Nigeria. Others are ExxonMobil, Shell, Halliburton, SLB, United Bank for Africa, Ikeja Electric, IHS Towers, etc. Click here for the rest of the list. Did your company make the cut?
Transcorp confirmed Otedola’s share buy
Nigerian conglomerate, Trancorp Plc, confirmed that billionaire businessman Femi Otedola had, indeed, acquired 5.5% ownership of the company, amounting to about 2.245 billion shares. The company confirmed this in a corporate disclosure seen by Nairametrics.
Recall that Nairametrics reported the deal two weeks ago, noting that the acquisition made Otedola the company’s second-largest shareholder. Since the deal first became public knowledge, Transcorp Plc’s share price has surged by 75%.
GTCO puts a halt to Ghanaian lending
Guaranty Trust Holding Company Plc announced last week that it will reduce its lending and bond trading activities in Ghana after it suffered a
$77 million impairment in the country, caused by Ghana’s debt crisis. Instead of Ghana, GTCO will focus its activities on Nigeria and other high-yielding African markets to increase lending by 15% in 2023; a move that is expected to increase 2023 profit by 31%.
Recall that a recent exclusive by Nairametrics detailed the losses incurred by Nigerian banks due to their exposure to Ghana’s debt crisis. Read up on that here.
Nigerian Breweries’ inter-company loan plan
Nigerian Breweries Plc disclosed last week that it would obtain shareholders’ approval for a €110 million inter-company loan to pay its outstanding trade payables. The company’s CEO, Hans Essaadi, who disclosed this during a pre-AGM press briefing, explained that the loan would be obtained from the Nigerian brewer’s parent company Heineken International.
Note that this is a cheaper loan option for the company whose business activities were somewhat impacted last year by Nigeria’s tough macroeconomic environment. The loan option is also a more flexible source for the brewer to get much-needed forex and forestall operational disruptions.
Windfall for Nigerian FMCGs
A special report by Nairametrics showed that Nigerian FMCGs reported increased revenues for FY 2022. This was even though they were still reeling from the adverse impacts of the COVID-19 pandemic which was worsened by the war in Ukraine.
Note that the FMCGs accomplished this through price adjustments. The FMCGs are- Nestle Nigeria (27% revenue increase to N446.819 billion), BUA Foods (25.5% revenue increase to N418.347 billion), Dangote Sugar (46% revenue increase to N403.236 billion), Unilever Nigeria (25.6% revenue increase to N88.571 billion), Nascon Allied Industries (76.64% revenue increase to N58.8 billion), and Cadbury Nigeria (30.3% revenue increase to N55.21 billion).
No more legal troubles for Seplat’s CEO
Seplat Energy Plc announced that the Nigeria Immigration Service had withdrawn the lawsuit it filed against it, its CEO and some directors. A notice to the Nigerian Exchange Limited quoted the company’s Chairman Mr Basil Omiyi to have confirmed the development whilst noting that was continuing to work to clear the allegations of racism and discrimination slammed against it by the Ministry of Interior.
Recall that the company had earlier refuted allegations made against its CEO, Mr Roger Brown, concerning his residency status. In addition, the Federal High Court in Lagos vacated an ex parte interim order which temporarily restricted Mr Brown from administering the company’s affairs.
Autocheck’s Egyptian deal
In deals news, Autochek announced that it has acquired a majority stake in Egyptian automotive technology company, AutoTager. The acquisition is to enhance Autocheck’s presence in North Africa and support the company’s ongoing growth, while marking its entry into the African continent’s second-largest automotive market, Egypt.
The acquisition is the third for Autochek in less than a year and the sixth in under two years, thus making it the leading Pan-African automotive technology company.
$400. 000 funding round for HouseAfrica
HouseAfrica, a Nigerian prop-tech startup, announced a $400,000 funding round, backed by Future Africa, SSE Angel Network (SSEAN), ARM Labs, CV VC, Startupbootcamp Afritech, Niche Capital, Rebel Seed Capital, and others.
The company also announced the launch of its flagship product, sytemap, which uses Blockchain and map technology to create a private land registry for real estate developers and buyers.
Flutterwave’s partnership with SHiip
Flutterwave has partnered with SHiiP to improve deliveries for Flutterwave store SMEs and large-scale merchants across Africa, providing a seamless end-to-end e-commerce experience for over 40,000 small-business entrepreneurs.
The partnership will enable Flutterwave merchants to select from a range of over 80 domestic and international couriers, resulting in cheaper delivery rates and providing a one-stop shop e-commerce solution for SME owners in Nigeria.
Access Bank’s 2022 financial report
In earnings news, Access Holdings Plc released its audited financial statements for the year ending December 31, 2022. The bank reported a 43% increase in gross earnings, which rose to N1.39 trillion from N971.89 billion in 2021. However, profit before tax dropped by 5% to N167.68 billion. The bank attributed the drop in profit to a decrease in net foreign exchange gain and other operating income.
The bank reported that net interest income increased by 19.32% to N359.63 billion from N301.41 billion in 2021, while Other Operating Expenses grew by 46.98% to N341.32 billion from N232.21 billion in 2021. The Board of Directors proposed a final dividend of N1.30k per ordinary share of 50 Kobo each on the 35,545,225,622 issued ordinary shares of 50k each payable to shareholders on the register of shareholding at the closure date.
