The Nigerian Economy Today 15/5/2017 – Smile Network appoints new CEO


Summary of the top business, economic and political news in Nigeria Today.

 

  1. The Association of Housing Corporations of Nigeria and the Central Bank of Nigeria has commenced the structuring of a N500bn intervention fund to facilitate mass housing construction across the country. The President and Chairman of Council, AHCN, Mr. Mohammed Adamu said, “…the association has decided to create an off-takers’ database throughout Nigeria in partnership with Value Chain Project Consultant Limited, and we have commenced the process of structuring a N500bn revolving housing intervention fund from the CBN to facilitate mass housing construction for Nigerians.” Link
  2. A Federal Capital Territory (FCT) High Court in Maitama, Abuja has issued a garnishee order directing the Central Bank of Nigeria (CBN) to remove N11,270,000 from account of police. The money is to pay the Incorporated Trustees of Peace Corps of Nigeria (PCN) and its National Commandant, Ambassador Dickson Akoh, as judgment debt against the police. Link
  3. A professor of animal and product nutrition, Gbenga Onibi has warned Nigerians against eating imported frozen meat, which he described as unsafe and dangerous to health. He also called for proper legislation against the display of fresh and frozen meat in unrefrigerated counters across in the markets to safeguard the health of the populace. Link
  4. Nigeria has been identified as one of the top five countries for growth acceleration for 2018. Other countries in the group include Kuwait, Oman, Kazakhstan and Tunisia. The Global Chief Economist at Renaissance Capital, Charles Robertson, who made this forecast in a report titled: “Africa 2017,” urged investors to take advantage of the opportunities in these countries.  He said Nigeria still has a very positive demography, pointing out that the country’s working age population has been growing at 15 per cent over the past five years. Link
  5. An Italian firm, Management Environmental Finance (MEFIN), has expressed interest in establishing wastes recycling plant in Calabar with an investment package totalling 40 million Euros. Link
  6. Determined to put an end to the incessant power outage experienced at the state secretariat and other government establishments, the Ogun State Government is soon to commission a 10 mega watt mini power plant, located at Onijoganjogan, Ewekoro Local Government Area of the state. Link
  7. The sharp drop in the price of cocoa beans in West Africa has affected government revenue and exporters’ earnings in Nigeria since the beginning of this year. The country is experiencing this challenge at a time the retail market for chocolate candy is valued at $143 billion in 2017.  The price of the commodity is said to have fell within the last seven months from $2,019 per metric ton to $1,457 per metric ton in May 2017. Already, exporters of cocoa beans have stopped shipping the commodity through the Port and Terminal Multi-service Limited, Tincan Island Port, since last April, as buyers were offering lower prices for cocoa beans. Link
  8. The Capital Market Committee (CMC) has given investors who joggled their names for the purpose of multiple subscription a forbearance period of six months within which they can lay claims to both their shares and accruing dividends. Director General of SEC, Mounir Gwarzo who made these disclosures in Lagos said investors involved failing to establish their identity within the stipulated time will have such shares and accruing dividends transferred to the Nigerian Capital Market Development Fund (NCDMF). Link
  9. The Group Managing Director of Obijackson Group, Mr. Ernest Azudialu-Obiejesi, has stated that one of the group’s subsidiaries, Neconde Energy, is still indebted to over 10 banks for the $558 million paid by the company for the acquisition of Oil Mining Lease (OML) 42 from Shell Petroleum Development Company (SPDC) and its partners. Link
  10. General Electric (GE) has stated that it is delivering on its commitments to collaborate with the federal government, investors and private sponsors of projects to ensure the realisation of 10,000 megawatts of incremental power in Nigeria, in line with the power Memorandum of Understanding (MoU) signed with the federal government in March 2012. Link
  11. Nigerian oil firm Oando said on Monday it was in talks to work with Italian energy company Eni to rehabilitate one of the West African nation’s four refineries. Oando said talks were expected to lead to a final agreement by the end of July. Link
  12. A likely merger and conversion of assets of Arik Air and Aero Contractors is one of the options being considered by the Federal Government (FG) in the buildup to a new national carrier for the country. The conversion plan, though already faulted by some stakeholders, will further reduce private domestic operations to six airlines, with the attendant debt burden and legal issues for the prospective national carrier. Link
  13. The Board of Directors of Lafarge Africa has submitted to the Nigerian Stock Exchange a Notice of its 58th Annual General Meeting (AGM) at which it will propose a Rights Issue for an amount up to N140 billion for approval by the shareholders of the Company. Also on the AGM agenda is a proposal to shareholders to approve the merger of Unicem into Lafarge Africa. The AGM is scheduled to be held in Lagos on Wednesday, June 7th, 2017. Link
  14. Unilever Plc, United Kingdom (UK), to inject about N38 billion into its Nigerian subsidiary, Unilever Nigeria Plc under a new capital raising programme approved by the shareholders of the fast moving consumer goods company last week. Unilever UK holds 60.06 per cent majority equity stake in Unilever Nigeria through its Unilever Overseas Holdings BV. Stanbic Nominees Nigeria Limited holds the second largest equity stake of 10.43 per cent in Unilever Nigeria. Link
  15. The Federal High Court in Lagos has ordered Skye Bank Plc to take over a five-star hotel, Intercontinental Hotel, located at Plot 244 and 245 (now 52) Kofo Abayomi Street, Victoria Island, Lagos. The bank had dragged Milan Industries Limited, owner of the 361-room Intercontinental Hotel, to court over an alleged debt. Skye Bank claimed to have granted loan facilities of $29.8m and N3.8bn to Milan Industries Limited to construct the hotel. Link
  16. The FMDQ OTC Securities Exchange Board’s Listings, Markets and Technology Committee have approved the registration of the Stanbic IBTC Holdings Plc N20bn Commercial Paper Programme on its platform. Issues from this programme are to be quoted on the OTC Exchange. Link
  17. The Senate has begun investigation into activities of some banks for allegedly colluding with some International Oil Companies, IOCs, to defraud Nigeria.  This is as over $62,909,716,417 was said to have been taken out of the country between August 2009 and December 2014 in suspicious circumstances. Link
  18. Sigma Pensions has been identified as the only Pension Fund Administrator that is listed on the London Stock Exchange list of promising companies. A statement by the pension firm said the LSE listed Sigma Pensions among the fastest growing private businesses in Africa. “This report was a laudable accolade as Sigma Pensions was the only pension fund manager listed among the identified 343 companies in 42 African countries, out of which 58 Nigerian companies made the list of the most exciting and promising companies, including small businesses.” Link
  19. Allianz Global Corporate & Specialty, a global insurance company, has achieved a revenue growth of 122 billion euro in 2016, Chief Executive Officer, Thusang Mahlangu has said. According to him Allianz Global Corporate & Specialty has been in Africa for over 100 years, the company achieved an operating profit of €10.8 billion in the same year. He further said the company has over 140,000 employees worldwide. Link
  20. Consolidated Hallmark Insurance Plc is paying N120 million as dividend, having received the nod of the shareholders at its 22nd Annual General Meeting (AGM) at the weekend in Lagos. The firm’s profit for the year was N195 million and profit before tax, N368.13 million. Link
  21. The Board of Directors (“the Board”) of Stanbic IBTC Holdings PLC (the Company) has announced the election of Mr. Basil Omiyi as the Chairman of the Board with effect from 15 May 2017 following the receipt of all required regulatory approvals. Mr. Omiyi succeeds Mr. Atedo Peterside CON as the Chairman of the Board following Mr. Peterside’s resignation as a Non-Executive Director and Chairman of the Board on 31 March 2017. Link
  22. The Managing Director, Alpha Mead Facilities and Management Services Limited, Mr. Femi Akintunde, says that in furtherance of the company’s objectives of expanding the profession of facility management in Nigeria and Africa at large, the firm has decided to take the World Facility Management Day celebration to Accra, the capital city of Ghana. Link
  23. The Securities and Exchange Commission (SEC) has dissolved the board of Ikeja Hotels and approved the appointment of an interim Board Chairman, Chief Anthony Idigbe, for the company. A statement from SEC explained that the decision was taken because of the unresolved internal crisis, involving majority shareholders of company. Link
  24. Yudala, one of Nigeria’s fastest growing composite e-commerce outfit, has announced the strategic appointment of Mr. Wole Ogundare as the new Chief Executive Officer. The appointment takes effect from May 1st 2017. Link
  25. Smile, a Pan-African telecommunications group with operations in Nigeria, Uganda, Tanzania and the Democratic Republic of the Congo, has appointed the former Chief Executive Officer of MTN Nigeria, Mr. Ahmad Farroukh to its Board as Executive Director, Operations, effective, May 1 2017. Link
  26. A new Chief Executive Officer, Gbenro Dara, has been appointed by Cheki.com.ng. Cheki is a business of One Africa Media (OAM). It operates in Kenya, Nigeria, Uganda, Tanzania and Ghana, and runs sites in several other countries in Africa focused on the importation of cars from Japan, the United States and Europe. Link
  27. Some financial analysts including the Centre for Social Justice have faulted the huge amount allocated for debt service in the 2017 budget proposal and the increase in the National Assembly’s allocation by N10bn. The Lead Director, CSJ, Mr. Eze Onyekpere, stated in a preliminary review of the budget that “dedicating 24.73 per cent of the overall budget proposal to debt service is an indication that Nigeria’s debt profile is becoming unsustainable.” Link
  28. The Nigeria Governors’ Forum has denied media reports that the Governor of Adamawa State, Abdulaziz Yari, is building a $3m hotel in Lagos with monies stolen from the Paris London Club refunds to state governments. Barkindo quoted Yari as having said that the claims that he diverted to personal use the various sums of $3m, N500m and another N2.2bn from the N19bn paid his state were false and libelous. Link
mudeerat olawunmi

Mudeerat Olawunmi is a graduate of Business Administration with over 5 years experience in online data gathering and analysis. Wunmi is a data analysts at Nairametrics and helps ensure that our readers get some of the most important macro and micro economic data required to help make investing decisions.

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