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Local Bourse Extends Bearish Run… ASI Down 13bps

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At the close of trading yesterday, the bearish run persisted in the domestic equities market as the All Share Index (ASI) declined 0.1% to settle at 31,040.84 point, largely on the back of losses recorded in NESTLE (-1.7%), STANBIC (-1.7%) and ETI (-2.2%).

Consequently, market capitalisation decreased by N15.5bn to N11.6tn while YTD return fell to -1.2%. Activity level weakened as volume and value traded shed 22.0% and 30.1% to 223.6m units and N2.2bn respectively.

The top traded stocks by volume were ACCESS (83.2m units), ZENITH (22.5m units) and FIDELITY (16.3m units) while ACCESS (N529.9m), ZENITH (N494.7m) and NIGERIAN BREWERIES (N262.4m) were the top traded stocks by value.

Bearish Sector Performance
Performance across sectors was largely bearish as 4 of 5 indices under our coverage closed in the red. The Banking index was the lone gainer, up 0.9% due to buying interest in ACCESS (+9.2%), ZENITH (+1.1%) and FIDELITY (+9.1%).

On the flip side, the Consumer Good index shed the most, down 0.9% driven by sell pressures in NESTLE (-1.7%) and NIGERIAN BREWERIES (-0.7%), trailed by the Oil & Gas index inching lower, 0.6% following sell pressures in OANDO (-4.3%).

In the same vein, losses in AIICO (-8.5%) and MBENEFFIT (-4.4%) dragged the Insurance index down by 0.5% while the Industrial Goods index (-0.4%) closed in the red due to sell offs in BETGLAS (-8.9%) and CUTIX(-9.8%).

Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.6x from 0.9x recorded in the previous session as 14 stocks appreciated against 23 decliners. NIGERINS (+9.5%), ACCESS (+9.2%) and FIDELITY (+9.0%) were the best performing stocks while CUTIX (-9.8%), BETAGLAS (-8.9%) and AIICO (-8.5%) led the laggards.

Despite the bearish run in today’s session, we observed some bargain hunting, especially in bellwethers that declined earlier in the week.

Hence, whilst the bearish sentiment continues to prevail, we are positive that certain triggers, including new company earnings releases and compelling attractive valuation, would propel demand in subsequent sessions.

NBA, YouTube Unveil 1st Basketball Channel in Sub-Saharan Africa

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The National Basketball Association (NBA) and YouTube yesterday announced the launch of the NBA’s first YouTube channel dedicated to fans in sub-Saharan Africa.

In addition to featuring two live games per week in primetime for the rest of the 2018-19 season, including the Playoffs, Conference Finals and The Finals, the NBA Africa YouTube channel will celebrate the impact of African players in the NBA.

The channel will also showcase the league’s long history of growing basketball at all levels across the continent and using the game as a platform to inspire and empower African youth.
The first two live game broadcasts on the new NBA Africa YouTube channel will take place on Sunday, March 24 and will feature the Charlotte Hornets hosting the Boston Celtics at 12:00am (CAT) followed by the L.A. Clippers visiting the New York Knicks at 6:00pm (CAT).
The channel will feature original and archived programming, including collaboration with Africa-based YouTube creators on original content, a customized weekly magazine show and NBA documentaries featuring current and former African players and legends.
“The NBA Africa YouTube channel is yet another important milestone for the NBA in Africa and will allow more fans to access our games, live and on demand, across the continent,” said NBA Vice President and Managing Director for Africa, Amadou Gallo Fall.  “As we enter the home stretch of the NBA season and teams fight for playoff positioning, we look forward to bringing the excitement of the NBA to more fans in sub-Saharan Africa while celebrating the NBA’s rich history and bright future in Africa.”
“From inception, YouTube has been a hub for fans to catch up on moments and coverage from their favorite sports,” said Manager of YouTube Partnerships in Africa, Dayo Olopade.  “We are delighted to be partnering with the NBA to bring the action and inspiration of basketball to our audience in Africa.  We hope NBA fans on the continent enjoy watching the live games and commentaries on YouTube.”
The NBA’s partnership with YouTube goes back more than a decade when it became the first professional sports league to partner with YouTube and launch its own channel in 2005, and the first to join YouTube’s “Claim Your Content” program in 2007.

Last year, YouTube TV became the first presenting partner of NBA Finals and WNBA Finals.  To date, the NBA YouTube channel has generated more than 5.4 billion views.
The NBA has a long history in Africa and opened its African headquarters in Johannesburg, South Africa in 2010.

Opening-night rosters for the 2018-19 NBA season featured 13 African-born players, and there are more than 80 current and former NBA players from Africa or with direct family ties to the continent, including Naismith Memorial Basketball Hall of Famers Hakeem Olajuwon (Nigeria) and Dikembe Mutombo (Democratic Republic of Congo).
Last month, the NBA and FIBA announced their plan to launch the Basketball Africa League (BAL), a new professional league featuring 12 club teams from across Africa.  The BAL will build on the NBA’s existing grassroots and elite basketball development initiatives on the continent, including the Jr. NBA, Basketball Without Borders (BWB) Africa and The NBA Academy Africa.
Since The NBA Academy Africa opened in May 2017, 25 elite male prospects ages 14-20 have received scholarships and training after scouting programs conducted with local federations across the continent.  Three NBA Academy Africa graduates have gone on to commit to NCAA Division 1 schools.
The NBA has held three sold-out Africa Games, in Johannesburg in 2015 and 2017 and in Pretoria in 2018, in support of charities including UNICEF, the Nelson Mandela Foundation and SOS Children’s Villages South Africa (SOSCVSA).

Through NBA Cares, the NBA has created 87 places for children and families to live, learn and play in seven African countries.

10 Elements Driving Change in Business Processes, People, Services

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A new initiative by ACCA (the Association of Chartered Certified Accountants), the global accountancy body, has highlighted 10 key drivers that are already changing business processes, people and services.
The report also addresses how the finance function within those businesses will need to prepare and adapt to meet transformative challenges.
Thomas Isibor, Head of ACCA Nigeria said: ‘Few sectors are going to experience the impact of new tech more than Finance and Accountancy.
‘Preparing now for the inevitability of change is even more vital for these functions, and forward-thinking should be every business’ strategic priority.
Isibor continued: ‘Challenges such as digital, risk, the global economy, politics, legislation, cyber security, ethics, even climate change – are all set to impact business and the Finance department in potentially unimagined ways.’

Technology – more than just Automation and AI – is already creating the most seismic impact on the Finance, Audit and Accountancy functions. The industry is in a race for future relevance.
The ACCA has identified four broad imperatives for any CFO or partner looking to optimise how technology can add – and not detract – value from their organisation:

to understand how to use the information available to them to provide strategic insight in real time;

to think forwards not backwards and maximise the use of technology to do this;

to ensure they have in place effective and efficient processes that satisfy the overall business requirements of finance, and to capture, measure, report and predict future performance in a much more agile manner to support better and quicker decision making.
Isibor added: ‘Preparation and readiness now is key,’

‘No technology has ever made an impact without first being adopted by people. The sooner we recast this challenge as one of people and processes, the sooner we’ll make progress. We have to be ready for what lies ahead.’

Cost of Global Cybercrime to Reach $2.1tr in 2019

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By Doros Hadjizenonos
Regional Director – SADC at Fortinet

As the threat landscape continues to evolve rapidly, it now includes increasingly sophisticated, zero-day malware that traditional security approaches can no longer keep pace with.

As a result, security researchers estimate that the cost of cybercrime will outpace security spend by over 16X, reaching $2.1 trillion by the end of 2019.

Staying ahead of today’s accelerated cybercrime trends requires adding artificial intelligence (AI) to an organisation’s network security strategy.

The Rise of Artificial Intelligence
The goal of AI is to replicate the analytical processes of human intelligence but to enable decision making at machine speeds. The most effective AI uses a deep-learning model built around an artificial neural network (ANN).

This network is comprised of hardware and software configured after the neuron patterns in the human brain. This design not only accelerates data analysis and decision making but also enables the network to adapt and evolve based on new information.
To accomplish this, an ANN goes through a machine learning (ML) training process where implanted learning models are carefully fed vast and increasingly complex amounts of information on an ongoing basis.

Once the system has identified patterns and problem-solving strategies, it is then provided with new information that enables it to adjust its algorithms so that it can adapt to and identify new tactics and capabilities adopted by malware or an attack vector.

Fortinet and AI
As an early adopter of AI, Fortinet began developing a self-evolving threat detection system over six years ago.

This system leverages a custom-designed ANN comprised of billions of nodes, and we have been meticulously training it with new threat data every day since, giving us a significant competitive threat intelligence advantage over every other vendor in the security marketplace.
Our FortiGuard Labs team now uses this advanced AI technology to analyse files and URLs and label them as clean or malicious—at machine speeds and with a high degree of accuracy.

Training an AI
The most crucial element of any AI solution is the methodology used to train its analysis and decision-making algorithms. The ML model used to train FortiGuard AI leverages the three essential learning model strategies endorsed by the AI community:

  • Supervised learning. This initial model begins the training of the AI by feeding it a vast amount of labelled data, clearly identifying the characteristics of each labelled data set, and then repeatedly applying those characteristics to unlabelled data.
  • Unsupervised learning. In this next phase, the algorithm has no known solution set to follow. Instead, it recognises patterns learned in phase one that enable it to label data without human help. At this point, new data can be slowly introduced to force it to deal with data it hasn’t seen before and make new decisions.
  • Reinforcement learning. The results of supervised and unsupervised learning are then “tested,” by scoring the system’s performance with unlabelled files and “rewarding” the system for good results. Training then continues to cycle between these three learning strategies on an ongoing basis.

Because of the recursive requirements of machine learning, any AI system that does not use all three of these learning models is incomplete. Each learning model helps refine results and improve accuracy.

Delivering True AI to Customers
Many cybersecurity companies claim to have introduced AI capabilities into their solutions. But the reality is, most fall short of true AI because their underlying infrastructure is too small or their learning models are incomplete.

Others refuse to divulge the methods that they use, which raises concerns about the reliability of their AI. Fortinet instead opts to be more transparent about its methodology so that customers know the breadth and depth of the analysis involved.

Sharing Intelligence across the Security Fabric
Intelligence in isolation is useless. The more it is shared, the more effective your defensive systems can become.

This is why every time a threat is identified, FortiGuard AI generates threat intelligence that automatically updates defensive signatures for every solution across the entire Fortinet Security Fabric, enabling security tools to work together to defend customers with advanced threat detection and protection solutions.
And because AI powers it, all of this happens seamlessly and behind the scenes—requiring no staff time from an organisation’s security analysts. This allows the Fortinet Security Fabric to integrate, collaborate, and automate threat detection, prevention, and remediation capabilities through sandboxing by sharing threat intelligence across each security element in real time.
Because Fortinet covers the network from end to end, we have a unique and comprehensive view that includes every component needed to protect an organisation’s ecosystem—from the data centre to multiple clouds.

This approach, unique in the industry, improves operational efficiencies while dramatically mitigating risks. And because FortiGuard AI threat detection is incorporated into the Security Fabric’s centralised visibility and controls, it also enables the network security team to work proactively based on the most accurate and timely information possible.

AMCON to Disengage Non-performing AMPs over N740bn Debt

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Managing Director/CEO, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Lawan Kuru (left) with the Principal Partner, Lexavir Partners, Mr. Francis Chuka Agbu at the AMCON/AMP Interactive Session in Abuja.

Mr. Ahmed Kuru, Managing Director/CEO, Asset Management Corporation of Nigeria (AMCON) has hinted that AMCON may disengage Asset Management Partners (AMPs) that cannot cope with the speed and enormous challenges of debt recovery expected by the corporation.

He also promised that the corporation may assign more accounts to AMPs that have shown aggression and zeal based on the review of the AMP scheme so far. He made this declaration at the 2019 edition of the AMCON/AMPs Interactive/Feedback Session in Abuja.

AMPs, are consortiums appointed by AMCON after a rigorous selection process with specialist skills required to ensure recovery and debt resolution; banking, legal, valuation and accounting. Kuru said that collaborating with AMPs became necessary because AMCON has a total loan portfolio of over 12,000 loans of various sizes and sectors that are still lingering many years after the corporation was established. He stated that when this is compared to AMCON’s staff strength, it became obvious that the corporation surely needed a strategic approach to improve coverage, recovery and results.

Kuru also disclosed that the AMPs are currently handling over 6,000 accounts within AMCON portfolio. Although in terms of weight, the accounts, which have been outsourced to AMPs constitute only 20% or N740 billion of the total EBA portfolio of N3.7trillion. AMCON he insisted places equal importance on the recovery efforts as they count towards the achievement of the corporation’s core mandate.

Managing Director/CEO, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Lawan Kuru (left) with the Principal Partner, Lexavir Partners, Mr. Francis Chuka Agbu at the AMCON/AMP Interactive Session in Abuja.

To achieve the mandate as part of the corporation’s renewed strategy to resolve these loans, he said, AMCON in 2016 introduced the AMP scheme to assist the corporation’s recovery activities especially in tracing, identification and location of obligors with the intent to resolve their outstanding indebtedness; tracing, identification and location of assets of obligors (both pledged and unpledged) to enhance the EBA value, and achieve set recovery objectives.

The AMPs he further said were also empowered to enable them get involved in negotiation of settlement & restructuring terms with identified obligors in line with approved guidelines; pursuing & enforcing debt recovery and collection activities geared towards optimization of assigned portfolio to achieve set targets and initiation of legal actions to further the loan recovery mandates in line with approved guidelines, amongst other obligor engagements.

With this laid down guideline and with AMCON sunset in sight, Kuru said AMCON is more aggressive with its recovery strategy and also expects its partners to equally step up their game because the corporation will no longer accommodate any AMP that is not moving on the same speed.

“We know it is not easy the jobs we have assigned to you. Recovery is a difficult job but even at that, a few of you (AMPs) have shown they cannot cope; we may have no choice to disengage such partner. But those that have done well, we will upgrade and even assign more responsibilities to such partners because there is indeed need for speed in this assignment. We are convinced that the AMP programme is key to the success of AMCON, and we will give you all the necessary support to make you succeed in this exercise,” the AMCON boss added.

Principal Partner, Lexavir Partners, Mr. Francis Chuka Agbu, SAN and AMCON’s Group Head, Enforcements, Mr. Aliyu Kalgo who also spoke at the forum called on the AMPs to leverage the special powers as provided by the AMCON Act 2010 as amended to improve on their assignment.

Other speakers at the forum include Mr. Benedict Daminabo, who spoke on AMCON Enforcement Procedures; Mr. Kunle Olalekan who dealt with the issues of Share Tracing and Transfer. Other presenters include, Mr. Aaron Agada (Asset Tracing & Recovery); Abdulazeez Baba (AMP Manual of Operations) and Mr. Jude Orhotowho and Steven Olateru (Use of AMCON Portal).

There were also Mr. Patrick Daniels (Commission & Claims); Mr. Adetayo Osunnaiye (Enterprise Risk Management) as well as Mr. Paul Odiwe (Post Enforcement Management).

IMO Dep Gov Elect: ‘No More Sharing of ISOPADEC Funds’

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Rt. Hon. Gerald Alphonsus Irona Deputy Governor-Elect Imo State
Rt. Hon. Gerald Alphonsus Irona Deputy Governor-Elect Imo State

Imo State Deputy Governor-elect, Rt. Hon. Gerald Alphonsus Irona says funds meant for Imo State Oil Producing Areas Development Commission-ISOPADEC shall no longer be diverted, but will be used for the development of the oil producing areas of the State.

Irona stated this while addressing thousands of stakeholders of Ohaji/Egbema/Oguta/Oru West Federal Constituency, who gathered in Oguta to receive him after the announcement of the Peoples Democratic Party-PDP as winner of the just concluded governorship election in the state.

He also preached forgiveness and reconciliation of all, urging his supporters to forgive all those that may have offended them in anyway, even as he assured them of his readiness to reconcile with all stakeholders in the area, irrespective of political and party affiliation.

“We must use ISOPADEC funds to develop our place. We shall end the practice of sharing of ISOPADEC funds. We shall take care of our women, youth and elderly. We will touch the lives of our people. Our brothers shall no longer be used as thugs. We shall not steal your money. If it is about money, we would not have won this election. We earned the confidence and trust of Imo people. We will ensure that the trust is sustained.”

“You must begin the process of reconciliation. No matter the political party anybody belongs to, I want to tell you that I will bring everybody under one roof. This is a task I have given to myself. I will start from my community, Local Government, Federal Constituency and of course Orlu zone. I will reconcile every reconcilable person or group. My people, out of benevolence, brought me from Councillorship, to Local Government as Chairman, then House of Assembly and House of Representatives. Today, I am Deputy Governor-elect. What has God not done for me? You will see a different Irona. We shall not let you down.”

Rt. Hon. Gerald Alphonsus Irona Deputy Governor-Elect Imo State
Rt. Hon. Gerald Alphonsus Irona
Deputy Governor-Elect
Imo State

Speaking on his experience in opposition for over a decade in the state, Irona stressed:

“We remained in the PDP; transformed PDP and conducted the best primaries ever in the history of Imo. We chased away all the criminals and sanitized the party. I told you earlier that nobody will rig my election. So it has happened. Of all that they did, could they rig us out?”

He poured encomiums on his political leader, Senator Francis Arthur Nzeribe, pledging his continued loyalty to the Arthur Nzeribe political dynasty.

“I am grateful to our leader, Chief Senator Francis Arthur Nzeribe. I am proud to come from this dynasty. Nobody! Nobody! Nobody will destroy this dynasty. He is the man that taught me not only how to do politics, but to manage my resources; a man with a forgiving heart; a political colossus, strategist and father of all.”

Irona used the occasion to call on all those that left the political family of Chief Nzeribe to return, assuring them of warm reception.

“I want to say it here that our brothers who, for certain circumstances decided to leave this family should return. I promise that I shall not oppress, harass or intimidate anyone with this position. I shall not take away anyone’s property from him/her. I promised you that all your efforts will be rewarded. It is also your duty to protect your own. The task is huge, but, with your support and prayers, we shall succeed. Don’t come to me to run anybody down. If you do it, you have lost my friendship.”

Highlights of the event were visits to the oldest man in Oguta, Sir Benneth Maduagwu Okororie, traditional dances, among others.

Sheraton Unveils New Logo Marking Transformation Milestone

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Sheraton Hotels & Resorts, Marriott International’s most global brand continues its transformation journey with a nod to its timeless pioneering legacy, as it unveils a new logo that pays homage to its past and depicts its vision for the future.

The new design reflects the brand’s holistic vision for the future, making Sheraton the central gathering place of communities around the world, welcoming guests and locals into a public space that embodies the modern town square vibe.
“The logo’s evolution reflects the renewed energy and firm commitment we are making to our owners and guests to the resurgence of this iconic brand.  More than a logo, this is a symbolic statement of Sheraton’s vision for our new guest experience,” said Mara Hannula, Vice President, Global Brand Marketing, Classic Premium Brands.

“This was the final piece of the redesign puzzle and offers a modernized look and feel to match our reimagined spaces while maintaining the powerful equity and recognition of the original logo.”
The new Sheraton experience will be available to guests later this year in Phoenix. The transformed 1,000-room Sheraton Grand Phoenix hotel which the company purchased in 2018 will bring to life the first of Sheraton’s full on-strategy hotel along with other exciting innovations.

The hotel will serve as a living and breathing lab, showcasing design and activations, using new technology and insights that bring a unique community vibe to the space.
“We are excited to introduce the new direction of the brand’s iconic symbol in the Middle East and Africa, where Sheraton has nurtured long-standing relationships with guests, owners and communities for over 50 years,” said Sandra Schulze-Potgieter, Vice President Premium & Select Brands, Marriott International Middle East and Africa.

“In line with the transformation of the brand, we are excited to showcase our early adopter properties soon, the Sheraton Jeddah Hotel and Sheraton Grand Hotel, Dubai.”
The new logo has been redesigned to signal an eye to the future while also hearkening back to Sheraton’s history. The new logo reimagines the signature laurel as movement from the world and the energy of gathering, which point to the modernized Sheraton “S” redrawn at the center.  Guests will start to see the new logo on collateral and websites starting in April.
In celebration of this moment for the brand, Sheraton associates across the world are kicking off on March 13 internal rallies to commemorate this milestone and the new Sheraton service and culture strategy, recommitting themselves to the brand and to reestablishing its place at the heart of the global community.

Cars45 Expands Retail Footprints with Enyo Partnership

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Etop Ikpe CEO Cars45
Etop Ikpe CEO Cars45

In continuation of its drive to facilitate ease of access and deliver more convenient services, Nigeria’s largest online vehicle trading platform, Cars45, has partnered with ENYO Retail and Supply, an innovative fuel retail brand, to increase its retail footprints and provide consumers with opportunities to buy, sell or swap their cars at all Enyo service stations nationwide.

‎It is expected that the launch of this exciting partnership will enable consumers experience peerless automotive services at Enyo retail outlets whilst increasing visibility for Cars45 value offerings across foot and vehicular traffic channels.

Commenting on the partnership, Chief Executive Officer, Cars45, Etop Ikpe, noted that the relationship is a strategic one aimed at helping to the company to achieve its mission to build an ecosystem that enhances, enables and drives trade within the nation’s automotive sector.

‎“This partnership with ENYO affords us the opportunity to deepen the pervasiveness of our products and services across the country. We are always seeking innovative approaches to expand and transform the currently fragmented automotive ecosystem and offer support across all the automobile trade, repair and verification services,” Ikpe added.

Etop Ikpe CEO Cars45
Etop Ikpe
CEO
Cars45

Highlighting the similarities between both organizations, Ikpe noted that, “Cars45 and ENYO are both technology-driven and innovative firms that have become synonymous with engaging customers through excellent retail experiences. Whilst Cars45 fueling and giving life to the car ownership dreams of consumers, ENYO is powering a fuel retailing revolution in Nigeria.”

Also speaking on the partnership, Chief Executive Officer, ENYO Retail and Supply, Abayomi Awobokun described the partnership with Cars45 as an extension of Enyo’s unrelenting desire to become the most desired fuel retailing company renowned for its best-in-class retail experience, strong customer-focus, and technology driven operations.

According to Awobokun, “this partnership is a step in the right direction and is positioned to achieve great feats as well as validate our market position and ability to create new value streams for our customers. It is also in alignment with our brand persona as the most exciting and trusted fuel retail brand in Nigeria. I have no doubts that this partnership will become the role model in delivering world class automotive services in Nigeria.”

‎Head, Commercial Operations and Marketing, Cars45, Mayokun Fadeyibi, said, “We are always striving to ensure that we make the automotive transaction experience a whole lot easier and exciting.  Our partnership with ENYO signposts this commitment even as we continue to seek for new ways of creating value. On the back of the partnership, our services will be accessible in the over 55 ENYO service stations across 13 states and serving over 50,000 customers daily.”

Furthermore, she added that, “this is just the beginning of the partnership and I am excited at the possibilities ahead for both brands to co-create amazing value offerings. We would be looking to build on it and expand the scope of our partnership through the year.”

#VisaFreeAfrica Initiative Introduces Writing Competition

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visa free

#VisaFreeAfrica (VFA) recently introduced the 55 Voices for a Visa Free Africa  (55Voices4Africa) writing competition, inviting all African youth to share stories about the challenges they faced with intra-continent travel.
VFA is a global campaign to facilitate mobility in Africa driven by the Kigali Global Shapers in partnership with National Aviation Services (NAS), the fastest growing aviation services provider in the emerging markets.
Kigali Global Shapers, a community whose vision is to create a platform that engages with the youth to inspire innovation and change launched the writing competition to build further awareness on the important of achieving a visa free Africa. This campaign will help put a face to a large number of young Africans with missed opportunities in areas of education, tourism, health and work among many sectors they would thrive in.

Participation
The “55Voices4Africa” competition is open to all African nationals between the ages of 18 to 30 years, based in any African country.
To participate in the competition, one should submit a story that is a narrative based on an experience writer or someone they know has faced when traveling to or from an African country that involved a tedious process to acquire a visa.
The essay should be no more than 1,000 words in a narrative nonfiction style written in English, French, Arabic or Portuguese.
Deadline for submissions is 15 April 2019 at 11:59 PM GMT.
The submitted story must be an original work, entirely owned by the entrant, and does not infringe on the copyright, trademark, intellectual property privacy or other rights of any third party under applicable laws, rules and regulations.
Winners will be announced by 30 April 2019.
To submit your entry visit: www.VisaFreeAfrica.com

Access Bank: ‘Our Case on N2.5bn Fraud Allegation’

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Herbert Wigwe Group MD/CEO Access Bank Plc
Herbert Wigwe Group MD/CEO Access Bank Plc

Access Bank Plc has denied wrong-doing in the alleged sale of goods worth N2.5 billion belonging to one of its customers.

The denial was bluntly made when the Police Special Fraud Unit in Lagos charged Access Bank Plc, its managing director and chief executive officer, Herbert Wigwe, and others with 21 counts of conspiracy, fraudulent disposal of trust property, fraudulent conversion, stealing and false representation before an Ogun State High Court.

In the suit, Access Bank Plc, Mr. Wigwe, Alawode Oluseye and Bayo Adesina were accused of conspiring and stealing 23,754.413 metric tonnes of steel billets valued at N2.5 billion belonging to BMCE Bank International Plc.

But in a notice to the Nigerian Stock Exchange (NSE), on Monday, Access Bank denied the allegations stressing that at no time did the bank or any of its executives or officers commit any of the alleged offences.

Herbert Wigwe Group MD/CEO Access Bank Plc
Herbert Wigwe
Group MD/CEO
Access Bank Plc

The statement reads: “In 2015, Access Bank availed credit facilities to Metal Africa Steel Products Limited, to finance the importation of billets and machinery for the expansion of its factory. Consequent upon the grant of the facilities, the bank opened Form M and Letters of Credit, LC, to facilitate the importation of the billets for which the shipping documents were consigned to the bank. The facilities were secured by a Debenture Trust Deed over the customer’s assets shared with other lenders. Upon arrival of the billets, the bank released the shipping documents to the customer to enable it clear the goods. The bank subsequently discovered that the customer had cleared the goods from the port without payment of appropriate customs duty. The bank, in line with its duty to protect its depositors’ funds, reported the alleged crime to SFU which obtained a court order to take over the customer’s business operations. Furthermore, the bank petitioned Interpol, which is presently taking steps to repatriate the suspects involved in the alleged fraud from India. Subsequently, the beneficiary banks (including the bank) under the Debenture Trust Deed, appointed a Receiver/Manager who took over the operations of the customer’s business and paid the appropriate customs duty on the billets. The Receiver/Manager subsequently obtained a court order from the Federal High Court and sold the billets and distributed the proceeds amongst the beneficiary banks (including the bank. The lender further said in the statement that it was “aware that the petitioner also laid claims to the same billets following which there were attempts at the settlement between the petitioner and the Receiver/Manager. The petitioner subsequently filed a complaint at SFU following the failure of settlement. Based on the foregoing, we were surprised to be served with the charges by the SFU alleging, amongst others, that the bank stole the billets and forged the shipping documents covering the billets. We hereby state that at no time did the bank or any of its executives or officers commit any of the alleged offences. The bank has continued to maintain the position that it financed the importation of the billets and that the Receiver/Manager appointed by the bank and a syndicate of other lenders had the right to sell the goods. We are aware that there are civil matters in court on the same subject. We are also aware that there are on-going settlement negotiations between the Receiver/Manager and the petitioner. Without prejudice to the settlement discussions and the civil matter, we reiterate that the Receiver/Manager appointed by the bank and a syndicate of other lenders acted within its powers to sell the billets. We wish to assure our stakeholders that the bank will continue to take all necessary steps to protect its depositor’s funds, in line with its fiduciary duties as well as extant rules and regulations.”

The implication or inference from Access Bank’s submission is that the bank did not in any way contravene or breach any agreement involved in the deal, and as such not liable to any offence as the court or public is being made to believe, except the complainant has other issues to raise in an expected originating summon. Until then, the bank remains adamant and stands by its position on the matter.

Nigeria, SA Lift Africa’s Smartphone Market to 88.2m Units in 2018

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While 2018 was a tough year for worldwide smartphone shipments, Africa experienced year-on-year growth for first time since 2015, according to the latest figures announced by International Data Corporation (IDC).

The global technology research and consulting firm’s newly released Quarterly Mobile Phone Tracker shows the African smartphone market grew 2.3% in 2018 to total 88.2 million units, spurred by the strong performance of the continent’s three biggest markets – Nigeria, South Africa, and Egypt.

Overall mobile phone shipments were down 1.9% year on year in 2018 to 215.3 million units, with feature phone accounting for 59.0% of shipments versus 41.0% for smartphones. This overall decline mainly comes from the sluggish performance of the feature phone segment in numerous countries across the region.

2018 was the first year since 2015 that Nigeria, South Africa, and Egypt have simultaneously experienced growth in mobile phone shipments. The Nigerian and Egyptian markets recovered from declines in 2017, thanks to the relative stability of exchange rates, the stronger presence of feature phones, and the introduction of new affordable smartphones.

In South Africa, the growth was driven by local brands such as Mobicel and Stylo pushing feature phones and ultra-low-end smartphones.

Transsion brands (Tecno, Infinix, and Itel) led Africa’s feature phone space in 2018, with a combined unit share of 58.7%. Nokia was next in line with 9.6% share. Transsion, Samsung, and Huawei dominated the smartphone space with respective unit shares of 34.3%, 22.6%, and 9.9%.

However, in value terms, Samsung led the smartphone space with 36.9% share, followed by Transsion (20.2%) and Huawei (12.4%).

Local and regional brands accounted for a combined 14.3% share of Africa’s overall mobile phone market in 2018. This is broadly equal to the share of all Chinese brands in the market, excluding Transsion, which is primarily focused on serving Africa and accounted for a significant 48.7% of the total market’s volume in 2018.

“A new wave of local/regional brands are emerging across the continent,” says Taher Abdel-Hameed, a senior research analyst at IDC.

“Some emerged after restrictions were placed on imports in countries like Algeria, while others have emerged to tap into opportunities in the feature phone and entry-level smartphone segments that have been almost vacated by global brands. Despite the success of Transsion brands in both the smartphone and feature phone categories, it is also worth noting the phenomenal growth enjoyed by Huawei and its sub-brand Honor in Africa’s smartphone space. Together, these two brands saw their shipments increase by a combined 47.9% year on year in 2018, spurred by their ambitious expansion plans in emerging markets and strong focus on affordable devices.”

Looking ahead, IDC expects Africa’s overall mobile phone market to decline 0.8% year on year in 2019 to total 213.6 million units. Smartphone shipments are forecast to grow 5.4% over this period, spurred by the introduction of more affordable devices in the African market that will help drive progress in this space over the coming years. However, feature phone shipments are expected to decline 5.1% as the shift to smartphone gathers momentum.

Regarding 5G deployments, while several experiments are already underway in the region, IDC expects the commercialization of 5G services to start in most countries by 2020. However, the arrival of 5G and new designs like foldable devices are not expected to create huge momentum in Africa over the short term due to the high price tag that is attached to these devices.

“There is always the possibility of technological leapfrogging in the innovation accelerators domain when Africa’s 5G markets are considered,” says Ramazan Yavuz, a research manager at IDC.

“4G-ready devices constituted only 35% all smartphones in 2016 in Africa. Considering 4G-ready devices are expected to surpass 72% of all smartphones by 2020, 5G smartphone penetration could be expected to roll out faster when the prices become more and more affordable after initial launches.”

Equities Market Extends Losses to 5th Consecutive Trading Sessions

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nse

In yesterday’s trading session, the local bourse shed 1.0% to settle at 31,313.36 points following losses recorded in GUARANTY (-4.8%),INTBREW (-9.9%) and DANGCEM (-0.5%). Accordingly, market capitalisation shed N120.6bn to settle at N11.7tn while YTD loss stood at -0.4%.

However, activity level improved as volume and value traded advanced by 71.0% and 22.7% to 219.5m units and N2.5bn respectively.

The top traded stocks by volume were FBNH (60.1m units), ZENITH (46.5m units) and DIAMOND (14.5m units) while ZENITH (N1.1bn), FBNH (N493.1m) and DANGCEM (N437.4m) were the top traded stocks by value.

Industrial Index Emerges Lone Gainer
Performance across sectors remained bearish as 4 of 5 indices under our coverage trended southwards. The Banking index led decliners for the second consecutive trading session, down 2.3% on account of sell offs in GUARANTY (-4.8%) and ZENITH (-0.9%).

The Consumer Goods and Insurance indices closely followed, down 1.3% and 0.5% respectively following losses in INTBREW (-9.9%), DANGSUGAR (-3.8%),LINKASSURE (-7.9%) and WAPIC (-2.5%). Also, the Oil & Gas index lost 0.4% on the back of price depreciation in MOBIL (-3.0%). On the flip side, the Industrial Goods index gained 0.2% following bargain hunting in WAPCO (+4.0%).

Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.3x from 0.7x recorded in the previous trading session as 8 stocks advanced against 29 decliners.

LAWUNION (+7.7%), UACPROP (+7.1%) and UCAP (+4.1%) led the top traded stocks while INTBREW (-9.9%), UPDC (-9.2%) and AGLEVENT (-8.8%) led laggards. Despite the consecutive negative performance recorded, we expect investor bargain hunting to drive market performance over the near term.

Vista Bank Selects Temenos to Power Digital Transformation in Africa

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Vista bank

Vista Group, a challenger bank building itself into a world class pan-African financial institution specifically designed to meet the needs of retail and commercial customers, has partnered with Temenos, the banking software company, to power its digital transformation journey.
Vista Bank is transforming its IT systems using Temenos Infinity, a breakthrough digital front office and Temenos T24 Transact, the next generation in core banking. As part of these products, Vista Bank also has selected the advanced Analytics and Reporting, Risk and Compliance modules as well as the Temenos Payments Hub product.
Vista Group was established following the acquisition of First International Bank (FIB) Group in 2015 by the US based investment fund, Lilium Capital. Challenging the banking status quo, Vista Bank takes a customer-centric and innovative digital approach to meeting the needs of its clients – from members of the public to SMEs.
Vista Bank conducted a rigorous competitive evaluation of solutions to replace its legacy IT systems. By implementing the Temenos software, the bank will be able to introduce new products and services more quickly, support its growth ambitions and continue to pursue its vision of becoming the financial institution of choice through innovative banking in its respective markets. It will also enable the bank to offer market-leading services to its customers through enhanced digital channels whilst meeting its customers’ increasing expectations for enhanced functionality, products and services when conducting their banking transactions.
The Temenos regional model bank approach, which includes pre-configured local functionality and best practices, will enable Vista Bank to cater for specific regulatory requirements during its expansion. Currently operating through a network of 43 branches across Sierra Leone, Guinea and The Gambia, the group’s goal is to expand its footprint into the West African Monetary Union and the Central African market, targeting a presence in 15 countries by 2025.
Vista Bank has entered into strategic partnerships with global institutions to drive its growth strategy in SME banking, leasing, women’s business banking, meso-finance loans and supply chain finance in addition to expanding its consumer banking operations. The bank will leverage Temenos’ global expertise and 25 years of experience in providing integrated, scalable packaged software, as well as Temenos’ commitment to invest 20 percent of revenues into research and development every year, which is the highest in the industry.

Simon Tiemtore, Group Chairman at Vista Bank, said: “As a challenger bank we are investing in our technology to ensure that we provide cutting edge products and services to our customers. I am delighted that, through our partnership with Temenos which leverages their 25 years of industry expertise, we now have the most sophisticated, innovative, cloud-native banking platform. This will help us realize our vision of building a truly pan-African financial institution group that will add value to the African economy and promote financial inclusion. Temenos is our trusted strategic technology partner and our customers will reap the rewards of its innovative API-first, cloud-native and cloud agnostic software.”

Femi Adeoti, Managing Director Africa Operations at Inlaks, said: “As a distributor and reseller of Temenos software in West Africa for more than 20 years, it is our delight to provide best in class digital banking solutions to Vista Bank via Temenos, the global leader in banking software. Inlaks as a company thrives on providing innovative solutions that enable our customers to adapt and stand out in the ever-evolving landscape of financial technology”.

Jean-Paul Mergeai, Managing Director Middle East & Africa at Temenos, said: “We are proud to welcome Vista Bank, an innovative and exciting challenger bank, to the Temenos family. We look forward to working as a close strategic technology partner of the bank as it realizes its goal of building a world-class pan-African financial institution group in addition to driving both economic development and financial inclusion in Africa. With Temenos’ market-leading, cloud-agnostic, cloud-agnostic technology the bank will be in an ideal position to meet their commitment of providing cutting-edge digital banking solutions, as well as innovative products and services, aimed at satisfying the unique needs of their customers. This partnership further strengthens Temenos’ longstanding presence in West Africa where for years our real-time and scalable banking software has been helping financial institutions address their evolving customer demands and regulatory requirements. We look forward to working with Vista Bank as it transforms the services that it offers to its customers.”

NCC Decries Proliferation of Substandard Handsets in Nigeria

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Prof. Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission
Prof. Umar Danbatta Executive Vice-Chairman/CEO Nigerian Communications Commission (NCC)

Worried by the continuous proliferation of substandard mobile phones and devices in the country, the Nigerian Communications Commission (NCC) has again advised telecom consumers to eschew patronage and usage of counterfeit handsets and other substandard mobile devices in the country.

This was the fulcrum of a one day event tagged: “Sensitization programme on hazardous effect of non-type approved handsets and impact on quality of service and e-waste” held at Paiko, Niger State, recently.

The Executive Vice Chairman/CEO of the NCC, Prof. Umar Danbatta, while addressing the audience at the event that also featured questions and answers between the consumers and the regulator, said the sensitization programme was part of the Commission’s deliberate move to educate and create awareness on the hazardous health effects and negative economic implications of the patronage of fake handsets and other Information and Communication Technology (ICT) devices in the country.

According to Danbatta who was represented by Director, Zonal Operations Department at NCC, Mrs. Amina Shehu, “It is a programme designed by the Commission to educate and enlighten the masses on the need to use type-approved handsets and the benefits of using such equipment which includes better quality of service (QoS), network integrity and safety of the end-users.”

Shehu, who frowned at the proliferation of counterfeit handsets in the country, said the menace of counterfeit and substandard handsets has assumed a global dimension which requires a lot of education on the part of the consumers and the collaboration with other government agencies to address it. She also enjoined telecoms consumers to check the Commission’s official website to find the list of type-approved phones from which they can make their choices of handsets to purchase.

“Cases of influx and patronage of counterfeit handsets are more rampant in developing countries, such as Nigerians, where importers bring in substandard phones without recourse to regulatory type-approval process aimed at certifying such devices as fit for the market,” she noted.

According to her, the Commission is empowered by the Nigerian Communications Act, 2003, section 132 to establish and enforce standards for all telecommunications equipment in operation in Nigeria to ensure that they operate seamlessly and safely within the Nigerian telecommunications environment.

As such, all equipment manufacturers, vendors and operators, including customer devices such as mobile phones and wireless adapters, must therefore ensure that their equipment conform to the applicable standards as mandated by the Commission before bringing them into Nigeria, stressing that NCC is also saddled with the responsibility of ensuring that consumer enjoys his or her stake in the telecommunications industry.

Prof. Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission
Prof. Umar Danbatta
Executive Vice-Chairman
Nigerian Communications Commission

Shehu further added, the Commission, in collaboration with the Office of the National Security Adviser (ONSA) and other government agencies, recently inaugurated two committees to design modalities towards curbing the proliferation of substandard handsets in the country.

She also said that, the Commission has developed regulations on electronic waste (e-waste), as another regulatory instrument, which among others, aim at providing regulatory framework for the management and control of e-waste in the telecommunications industry, all in line with Section 132 of the NCA, 2003.

Speaking on behalf of telecoms consumers and participants at the event, the Hakimi of Paiko, Alhaji Mansur Baba Mustapha commended the Commission for bringing such programme to the Paiko community.

He, however, complained of poor network services and unsolicited text messages they receive from telecom operators with the Commission providing necessary responses, especially on the need to activate the Do-Not-Disturb (DND) 2442 Short Code to stop unsolicited text messages.

Can Nigeria Regain Business Environment Reform Steam?

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This week, Afrinvest Research says it is turning its attention to the on-going business environment reforms started by the President Buhari administration in 2016. The Presidential Enabling Business Environment Council (PEBEC) is the institution tasked with the reforms that make it easier to do business in Nigeria.

The improvements are expected to come in the form of a reduction in cost, time and procedures in starting and running a business. The overall target at the commencement of the reforms was to improve Nigeria’s ease of doing business rank to the top 100.

Since 2016, PEBEC has implemented reforms in three phases (National Action Plans — NAP), mainly along the eight core focus areas of the World Bank’s Ease of Doing Business ranking (EoDB).
The results from the actions taken — three cycles of actions so far — have been mixed. We observed that the largest improvements were in the earlier phases of the programme, as the initial momentum seems to have waned.

In the first phase, PEBEC hit the ground running by achieving c.82.0% of its reform targets over a 60-day period from February 2017. This led to an improvement in Nigeria’s EoDB ranking by 24 places to 145 out of 190 countries.

The second 60-day National Action Plan expanded the scope of the reforms to include such areas as Selling to Government, Trade Within Nigeria and Trading Across Borders. The reforms achieved a poor success rate of c.52.0%.

Between February and April 2018, the third phase of reforms covered nine indicators and the success rate marginally improved to c.62.0%. These reforms improved Nigeria’s score from 52.03 to 52.89 in the 2019 EoDB rankings, but the country slipped one place to 146 out of 190 countries. We suspect that the slow pace of reforms in the second and third phases had a negative impact on the 2019 ranking.

Business Environment Reforms Necessary but Insufficient to Attract FDI
The fourth National Action Plan has been set in motion by PEBEC, and it is intended to cover ten reform areas from March to April 2019.

Since the target is to achieve a ranking within the top 100 when the 2020 EoDB ranking is published in October 2019, we make the case for faster and more effective implementation to achieve a better success rate. This is because strong upward movements in the EoDB rankings require that the pace of reforms is faster in Nigeria than in other countries.

We also believe PEBEC must look past implementing reforms on paper, the processes must be institutionalised to generate gains. Anecdotal evidence reveals that Nigerian institutions are slow in transitioning to new processes, thus perpetuating inefficiency and corruption, which have always made doing business difficult. We posit that helping institutions attain quicker transition and monitoring their processes post-reforms is necessary for sustainable improvements.
We are yet to see strong improvements in FDI in Nigeria due to the business environment, which remains unaccommodating despite reforms instituted of late. This is because a higher EoDB ranking is not sufficient for increased investment.

To attract investment, we believe PEBEC and the FG have to look beyond gains in the ranking as business environment reforms must be complemented by pro-business regulations, accommodative monetary and fiscal policies, and the opening up of sectors to private investment.

Domestic Equities Market: Market Sentiment Remains Weak
This week, activities in the domestic equities market responded to several factors including abating political risks, positive earnings releases and dividend declarations. Despite these positives, market sentiments have remained weak with unimpressive dividend yields dampening sentiments further.
At the start of last week, the benchmark index posted gains of 95bps and 14bps on Monday and Tuesday respectively, due to bargain hunting in GUARANTYZENITHUBN and INTBREW. However, by midweek the market maintained a downtrend till week close, shedding 80bps cumulatively due to profit-taking in ZENITHDANGCEM and GUARANTY as well as sell pressures on ETISEPLAT and NIGERIANBREWERIES.

As a result, the All Share Index (ASI) closed the week at 31,924.51 points, up 0.3% W-o-W while YTD return settled at 1.6%. Activity level however strengthened as average volume traded climbed by 1.6% to N355.7m units, while average value traded rose 21.0% to N4.8bn.

Top trades by volume for the week were DIAMOND (158.m units), ZENITH (133.5m units) and FBNH (92.3m units) while the top trades by value were GUARANTY (N3.3bn), ZENITH (N3.3bn) and DANGCEM (N0.8bn).
Investor sentiment, as measured by market breadth (advance/decline ratio), declined to 0.6x from 0.7x posted the prior week. The outperforming stocks by the close of the week were WEMA (+11.7%), CUTIX (+9.8%) and SOVRENIN (+8.7%), while MBENEFIT (-14.8%), LIVESTOCK (-11.9%) and ACADEMY (-10.0%) declined the most. In the coming week, we expect market participants to react to earnings releases, but we believe that W-o-W the market will rebound as investors’ position in cheap and fundamentally sound stocks.

Foreign Exchange Market Review and Outlook: Reserves Level Rises as Capital Inflows Increase
The Naira traded within tight bands (N360.00 – N361.00/US$1.00) during the week as the Central Bank of Nigeria (CBN) sustained its weekly intervention to ensure liquidity and stability of the exchange rate across all segments of the market.

Although the Apex bank’s intervention put pressure on the reserves pre- presidential election, we observed a c.US$0.2bn uptick in the foreign reserves to US$42.5bn which has largely been driven by foreign portfolio inflows into the fixed income market.

Based on capital inflows and sustained CBN interventions, the naira traded flat at the parallel market and appreciated on the I&E window by N1.22 to close the week at N360.46/US$1.00 (previous week close: N360.80/US$1.00). On the other hand, the CBN spot rate depreciated 15kobo to close at N306.90/US$1.00.
In the near term, we expect the naira to remain at current bands and any pressures muted as the CBN continues its weekly interventions. We also anticipate the pace of capital inflows to be sustained in the short term provided polity risk subsides and rate hikes in systemically important central banks remain on hold.

Money Market: Rates Trend Lower on Improved System Liquidity
The CBN has maintained the pace of OMOs in recent times, holding three auctions this week for instruments worth a total sum of N645.8bn across tenors between 91-days to 192-days at marginal rates between 11.9% (on the shorter tenor instruments) to 13.48% (on the longer tenor instruments).

Given the overriding aim of the CBN to keep price levels moderate, we expect OMOs to continue apace with recent trends to limit the possibility of speculative attacks on the naira, as system liquidity is expected to be buoyed by OMO maturities worth N88.4bn.
In the secondary Treasury bills market, the average yield increased significantly by 0.8%to settle at 13.9%, as investors sold off instruments in the week to partake in the OMO auctions given the more attractive discount rates on instruments auctioned. We expect that if the CBN maintains the pace of auctions, as is expected, that market activities will mirror this week in the next week.
Consequent on the improved system liquidity in the week, money market rates – Open Buy Back (OBB) and Overnight (OVN) rates –pared to 9.2% and 10.1% respectively from 16.3% and 17.4% recorded in the prior week. We expect the rates to remain moderate in the next week.