The African Development Bank will launch 17 new grant projects funded by the Agriculture Fast Track Fund (AFT) in support of agribusiness Small- and Medium-sized Enterprise (SMEs) in eight African countries – Ghana (4), Tanzania (4), Burkina Faso (2), Malawi (2), Mozambique (2), Ethiopia (1), Nigeria (1) and Senegal (1).
The AFT Fund is managed by the Agriculture and Agro-Industry Department of the African Development Bank. It supports the development of a strong pipeline of “bankable” agriculture infrastructure projects and assists African agribusiness SMEs in project preparation activities to ease their take-off.
The fund is supported by the governments of the USA (through USAID), Denmark (through DANIDA) and Sweden (through Sida).
The Fund finances the project development cost of a broad range of agriculture infrastructure, spanning the entire value chain: from production to the market. Target projects range from rural feeder roads to irrigation, agro-processing and marketing facilities, and out-grower schemes.
The emphasis is on projects that contribute to the food security, income enhancement, job creation, and livelihood of smallholder farmers.
The projects are being implemented in 10 eligible regional member countries (RMEs) of the Bank: Benin, Burkina Faso, Cote d’Ivoire, Ethiopia, Ghana, Malawi, Mozambique, Nigeria, Senegal and Tanzania.
BudgIT tasks President Buhari to carry out the disposal of recovered assets in a transparent manner, in line with Nigeria’s Open Government Partnership National Action Plan.
The news on the sale of recovered assets which the President has directed the Ministry of Finance to carry out within six (6) months was received with mixed feelings due to the non-disclosure of information on assets recovered.
With this development, BudgIT wants to remind the Federal Government on its commitment to Open Government partnership, which relates to asset recovery – to strengthen Nigeria’s asset recovery legislation including non-conviction based confiscation powers and the introduction of unexplained wealth orders.
A favourable framework would have been the enactment of the Proceeds of Crime Act (POCA), which has been passed by the Senate but awaiting passage by the House of Representatives.
If the bill was passed, it would have provided for an effective legal and institutional framework for the recovery and management of the proceeds of crime or benefits derived from unlawful activities.
We have not seen increased interest in the Nigerian government to institutionalize the process of disposing of assets recovered as proceeds of crime.
We also notice that the monthly publication of reports of the recovered assets and utilisation as provided by the OGP secretariat, stated that an audit committee set up by the President is verifying all recovered assets.
However, we are yet to see the report of the committee. Government’s commitment to Open Government means that information should be disclosed proactively yet, vital information of recovered assets is not accessible to citizens.
The Federal Ministry of Justice has been tasked to develop guidelines for transparent management of recovered assets pending the enactment of the law but assets recovered should not be sold without a transparent management framework.
With this in mind, BudgIT calls on President/Federal Government to develop the guidelines for the management of assets recovered. Likewise, we encourage the House of Representatives to pass the POCA bill into law.
We also encourage the federal government to be transparent on sales and management of recovered assets so as not to create a scenario where looted funds are used to repurchase public assets.
We strongly believe that these recommendations, if implemented, will go a long way in enhancing good governance and help in institutionalising asset management in the country.
Yesterday’s trading session posted another bullish performance as the NSE All Share Index (ASI) advanced 76 bps to settle at 29,970.86 points following continued price appreciation in NESTLE (+5.3%) as well as bargain hunting on DANGECM (+1.2%) and ACCESS (+9.9%).
As a result, the market capitalisation inched to N11.3tn as investors’ wealth increased by N84.4bn. Nevertheless, activity level weakened as volume and value traded declined 32.8% and 30.7% to 216.0m units and N3.2bn respectively.
The top traded stocks by volume were ACCESS (39.2m units), UBA (24.2m units) and LASACO (20.8m units) while the top traded stocks by value were NESTLE (N1.5bn), ZENITH (N342.5m) and GUARANTY (N311.6m).
Mixed Sector Performance
The sector performance was mixed albeit negatively skewed as 3 out of 5 indices under our coverage declined. The Oil & Gas index shed the most, down 1.4% due to sell-offs on SEPLAT (-3.4%).
In the same vein, the Industrial Goods and Banking indices dipped 0.4% and 0.2% respectively due to losses on CCNN (-3.6%), GUARANTY (-2.4%) and WEMA (-5.6%).
On the flip side, the Consumer Goods index was the best performer, up 2.7% on the back of buying interest in NESTLE (+5.3%) while the Insurance index closed flat marginally gaining 3bps.
Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio) took a negative turn to 0.9x from 2.1x in the prior session as 16 stocks gained against 17 losers.
The best performing stocks were ACCESS (+9.9%), CHAMS (+9.1%) and FIRSTALUM (+8.6%) while the laggards were led by TRANSEXPR (-9.8%), UACPROP (-9.6%) and ABCTRANS (-8.3%).
The relatively weak investor sentiment portends that the last trading session of the week may be dominated by profit taking activities especially in bellwethers that had recorded gains in previous sessions.
Prof. Umar Danbatta
Executive Vice-Chairman
Nigerian Communications Commission
The Nigerian Communications Commission (NCC) has again enjoined telecoms consumers and other stakeholders to join hands with the Commission towards protecting telecom infrastructure for improved telecoms service delivery to them.
The Commission made the call during a sensitisation programme on the protection of telecoms infrastructure in Okene Kogi State recently, urging all stakeholders, including traditional rulers, and individuals to collectively protect telecoms infrastructure in their communities.
While addressing an audience of telecoms consumers at the event, the Director Zonal Operations, NCC, Mrs. Amina Shehu, said concerted efforts of all stakeholders were needed to protect telecoms infrastructure.
Shehu, who was represented by a Principal Manager in the Zonal Operations Directorate, Mr. Ekisola Oladisun, said that if the Quality of service (QoS) and Quality of Experience (QoE) enjoyed by the consumers are to be improved upon, the consumers needed to play a role by joining hands in protecting telecoms infrastructure such as base transceiver stations (BTS) and fibre optic cables located in their vicinities.
Prof. Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission
While noting that Nigeria has, over the years, recorded tremendous growth in its Gross Domestic Product (GDP) following the liberalisation of the telecoms industry in 2001, Shehu, however, lamented that there are various changes facing optimum protection for telecoms infrastructure, which , in turn, hinder delivery highly improved services to the consumers by the mobile networks.
The challenges, according to her, include vandalism, theft of telecoms site equipment’s and harassment and intimidation of telecoms site engineers, indiscriminate shutdown of telecoms facilities by government agencies, right of way (RoW) issues among others.
According to Shehu, “It is important to note that the spate of vandalism of telecoms infrastructure across the country has resulted in cases of poor quality of service which telecoms consumers complain about.”
She added that it was on the basis of these realities, that the Commission has organised the workshop in order to educate consumers on the imperative of protecting telecoms infrastructure, which has become the backbone for the entire economy, stressing that “we need to collectively protect telecoms infrastructure in our communities to prevent decline in quality of service on the networks of our service providers.”
Speaking in the same vein, an official in the Technical Standards and Network Integrity (TSNI) Directorate, NCC, Mr. Musa Daibu, said the Commission and other stakeholders were pushing for the passing into law of a bill on Critical National Infrastructure, which, if passed into law, will help to further improve telecoms infrastructure protection, as it will classify telecoms infrastructure as national assets.
The forum provided opportunity for telecoms consumers to ask questions on various aspects of telecomm service delivery with the Commission’s officials providing appropriate responses to issues raised to the satisfaction of the consumers.
Executive Director, Asset Management Corporation of Nigeria (AMCON), Dr. Eberechukwu Uneze and Brigadier-General Ibrahim Mohammed Jallo, the Academy Registrar, Nigerian Defence Academy (sitting middle) with other officers and men from the academy; some senior officials of AMCON as well as some of the cadets in a group photograph at the end of the visit in Abuja, recently.
Managing Director and Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Lawan Kuru has again reiterated that the over N5 trillion bad debts, which Nigerians expect AMCON to fully recover before its sunset should be seen as a collective problem that concerns all Nigerians irrespective of their socio-political, ethnic and cultural ideologies.
Kuru who was represented by the Executive Director, Assets, Dr. Eberechukwu Uneze, made the declaration when he received a group of cadets from the Accounting Department of the Nigerian Defence Academy (NDA); officers and men as well as lecturers from the academy led by Brigadier-General Ibrahim Mohammed Jallo, the Academy Registrar.
The cadets were at AMCON on an excursion as part of their mandatory requirement to visit select financial institutions where they are availed the opportunity of matching theoretical teachings in the academy with practical realities of accounting principles in the real business world.
The AMCON boss, who described the attitude of typical AMCON recalcitrant debtors as a reflection of the nonchalant attitude of the populace said such negative disposition was responsible for the rascality that was experienced in the banking sector, which led to the creation of AMCON in 2010.
Executive Director, Asset Management Corporation of Nigeria (AMCON), Dr. Eberechukwu Uneze and Brigadier-General Ibrahim Mohammed Jallo, the Academy Registrar, Nigerian Defence Academy (sitting middle) with other officers and men from the academy; some senior officials of AMCON as well as some of the cadets in a group photograph at the end of the visit in Abuja, recently.
He cautioned those who hitherto think the challenge of recovering the huge debt is AMCON’s sole headache to think again, because the monies in question belong to Nigerian taxpayers.
He therefore called on organisations and establishments including the security agencies, which includes the army, to support AMCON in its drive because failure to recover the huge debt will mean that the government would somehow, someday pay back with taxpayers’ money, which would have been used to provide or improve the much needed infrastructure across the country.
Insisting that AMCON has remarkably done well against all odds since its establishment, he stated however that the corporation is not resting on its oars to ensure that these debtors pay what they owe the nation.
He disclosed that it was the zeal to make debtors pay that pushed AMCON to change its recovery strategy from negotiation to enforcement. Aside recovering over N1trillion, he said, “Our intervention in the banking sector protected thousands of jobs. Along the line we have also created thousands of direct and indirect jobs. The creation of the Asset Management Partners (AMPs) scheme for instance employed close to 9,000 direct and indirect jobs as well.
“With the AMP scheme, AMCON is laying solid foundation for the stability of the financial sector because we are gradually and systemically grooming professionals that will take over the job of AMCON at sunset. Our thinking is that at the end of this assignment as mandated by the law, we would have trained highly experienced and professional agents with the requisite capacity and knowhow to continue to function as asset managers in the country. This is because AMCON was not established to stay forever because that will encourage bad behaviour in banks. It also has a moral hazard, which is not good for our economy and the country,” he concluded.
In response, Brigadier-General Jallo, while thanking the management of AMCON for the various presentation, which are revealing and at the same time educating said, there was need for AMCON and the defence academy to collaborate in terms of staff trainings among other areas of partnership for a mutually beneficial relationship.
He said the cadets whom he led to AMCON were part of the 68 Regular Course in Accounting Department of the NDA who were on the verge of graduating from the academy.
Aside from AMCON, he disclosed that they will visit other government Ministries, Departments and Agencies (MDAs) in four states, in line with the fulfilment of the academic requirement that demands them to be exposed to business and transactional realities, which further equips them as well-rounded cadets before their eventual graduation.
The domestic equities market advanced 0.5% in yesterday’s trading session to settle at 29,347.62 points following gains in bellwether stocks – GUARANTY (+2.1%), FBNH(+6.1%) and UBA (+2.4%).
As a result, market capitalisation rose by N57.9bn to N11.0tn while YTD return moderated to -6.6%. However, activity level weakened as volume and value traded shed 45.5% and 18.2% to 224.0m units and N2.0bn respectively.
ZENITH (45.4m units), LASACO (42.3m units) and ACCESS (21.7m units) were the top trades by volume while ZENITH (N927.7m), GUARANTY (N376.9m) and STANBIC (N135.3m) led the top trades by value.
Mixed Sector Performance
Performance across sectors was mixed as 3 of the 5 indices under our coverage trended northwards while 1 closed flat.
The Insurance index led advancers, up 1.9% following bargain hunting in NEM (+10.0%) and NIGERINS (+10.0%). The Banking and Industrial Goods indices trailed, appreciating by 1.1% and 0.8% respectively on the back of buying interest in GUARANTY (+2.1%), FBNH (+6.1%), UBA (+2.4%) and WAPCO (+3.9%) while the Oil & Gas index closed flat for the second consecutive trading session despite profit taking in ETERNA (-8.1%).
On the flip side, the Consumer Goods index fell 0.1% on account of losses in PZ (-9.7%) and DANGFLOUR (-5.9%).
Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 2.1x from 1.3x recorded in the previous trading session as 15 stocks advanced against 7 decliners. NEM (+10.0%), NIGERINS (+10.0%) and FIDELITY (+8.7%) were the best performing stocks while IKEJAHOTEL (-9.8%), ABCTRANS (-8.3%) and ETERNA (-8.0%) led decliners.
Although we witnessed bargain hunting by investors during mid-week, we still maintain an overall bearish outlook in the near term.
Prof. Umar Danbatta
Executive Vice-Chairman
Nigerian Communications Commission
Professor Umar Garba Danbatta, the Executive Vice-Chairman/CEO of the Nigerian Communications Commission (NCC), says the Commission is ready to drive the process of attaining 70% broadband penetration in the next couple of years, if that is set as the new target by the Federal Government.
Speaking while delivering a goodwill message at an investment summit of Kaduna State Government, KADINVEST 4.0, Prof Danbatta, expressed optimism about the commitment of the agency toward taking the broadband penetration to the next level.
“When I was appointed EVC of NCC by President Muhammadu Buhari in 2015, broadband penetration was only 8.5 per cent. It has now risen to 33%, an equivalent of 63 million Nigerians enjoying the services. I am particularly thrilled y to see that the rising trend has not only been sustained, but the NCC is now ready to take it to the next level,” he pointed out.
Prof. Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission
It could be recalled that Nigeria attained its 30% broadband target in 2018 through measures and strategies put in place by the NCC under the leadership of Prof Danbatta, a development that has attracted industry-wide commendations.
Speaking further at the occasion, however, Danbatta also urged Fleek Network Limited, the licensed Infraco for the North West to quickly mobilise to site with a view to deploying broadband infrastructure in the region.
At least, six (6) infrastructure companies (Infracos) have been licensed by the NCC under the leadership of Prof Danbatta to drive the deployment of broadband infrastructure across the nation’s six geopolitical zones and Lagos State, which is a zone on its own due to the sheer size of its market.
The license for the north central region remaining is currently being processed.
Smile Communication Limited has unveiled the SmileKonnect solution for international data roaming services in 85 countries around the world. The company plans to extend the data roaming service to 100 countries very soon.
Mr. Godfrey Efeurhobo, Managing Director, Smile Communications said at the launch of Smilekonnect in Lagos that the service will give travellers a seamless experience in terms of data roaming while outside the country.
Efeurhobo said the company is noted for innovation in the telecom industry in Nigeria. He added that with SmileKonnect, the average traveller is connected on the go for seamless international data experience in 85 countries.
The Smile MD said: “We have set the pace for broadband expansion in Nigeria through our unique 4G services. We believe in quality, speed and reliability and we want to reassure our customers that Smile Communication will continue to explore innovative ways to improve their experiences.”
Mr. Abdul Hafeez, the Chief Marketing Officer (CMO) of Smile Communications described SmileKonnect as the first of its kind in Nigeria. He said the service will save travellers from the the high cost of data roaming while abroad and also the hassles of changing SIM cards anytime they travel outside the country.
Hafeez who described the service as the perfect solution for local and international super fast Internet connection added that the device can connect up to five devices simultaneously.
Engr. Gbenga Adebayo, Chairman, Association of Licensed Telecommunication Operators of Nigeria (ALTON) commended Smile Communication for the milestone, saying that changes in technology has become a regular feature of the telecom market in Nigeria and elsewhere.
Adebayo called on the Nigerian Communications Commission (NCC) to come up with a data floor plan for the industry as small players are finding it difficult to compete with big operators in the market.
Mr. Teniola, President, Association of Telecommunication Companies of Nigeria (ATCON) equally praised the SmileKonnect initiative by Smile Communication. He added that the telecom market in Nigeria needs such level of innovation to generate sustainable growth.
The World Bank has announced the unanimous selection of David R. Malpass as President of the World Bank Group for a five-year term beginning on Tuesday, April 9, 2019.
The Board expressed its deep gratitude to Interim President Kristalina Georgieva for her dedication and leadership in recent months.
Malpass previously served as Under Secretary of the Treasury for International Affairs for the United States.
As Under Secretary, he represented the United States in international settings, including the G-7 and G-20 Deputy Finance Ministerial, World Bank-IMF Spring and Annual Meetings, and meetings of the Financial Stability Board, the Organisation for Economic Cooperation and Development, and the Overseas Private Investment Corporation.
In his role as Under Secretary, Malpass played a crucial role in several major World Bank Group reforms and initiatives, including the recent capital increase for IBRD and IFC.
He was also instrumental in advancing the Debt Transparency Initiative, adopted by the World Bank and IMF, to increase public disclosure of debt and thereby reduce the frequency and severity of debt crises.
Prior to becoming Under Secretary, Malpass was an international economist and founder of a macroeconomics research firm based in New York City. Earlier in his career, Mr. Malpass served as the U.S. Deputy Assistant Secretary of the Treasury for Developing Nations and Deputy Assistant Secretary of State for Latin American Economic Affairs.
In these roles, he focused on an array of economic, budget, and foreign policy issues, such as the United States’ involvement in multilateral institutions, including the World Bank.
Malpass has served on the boards of the Council of the Americas, Economic Club of New York, and the National Committee on US–China Relations. He earned his bachelor’s degree from Colorado College and his MBA from the University of Denver.
He undertook advanced graduate work in international economics at the School of Foreign Service at Georgetown University.
Siemens launched an extraordinary data visualisation project called FABRIC at the German Africa Business Summit in Accra, demonstrating how crucial data is in transforming Africa’s urban centers into smart cities of the future.
This interactive initiative previously launched in South Africa, Nigeria and Kenya showcases African ecosystems and how by understanding data patterns, we can make smart decisions on connecting people and technology, ultimately building solutions with purpose.
The project used Jamestown and immedaite surrounding areas as a case study due to the town’s strong culture and powerful history. The data visualisation of Jamestown revealed how among all the challenges the area may be facing, the water crisis is a major one.
Edmund Acheampong, Country Manager of Siemens Ghana stated that “understanding data can help town planners identify a community’s challenges to better deliver services and identify ways to improve the community.
For him, “Jamestown was the perfect place for a project like FABRIC. The area, which has its challenges, still shows great infrastructural potential.” He also added that “Siemens is committed to unlocking the potential of communities through its digital expertise”.
Jamestown, which also houses the Central Business District (CBD), is the hub of major commercial activities within the city of Accra. The town is believed to attract an estimated daily influx of about 2 million people from various walks of life who come for Administrative, Educational, Industrial and Commercial reasons. This situation does not only boost economic activity within the Metropolis but also puts a lot of pressure on already heavily burdened energy infrastructure, coupled with water, energy and sanitation challenges.
Acheampong believes companies with the right technologies need to step in to make a difference. He explained that Siemens’ Water portfolio covered the entire water value chain from, Water Transport, Treatment, Desalination and pumping stations.
Siemens in collaboration with the government and other local companies can help work towards building a resilient Accra through intelligent water infrastructure and sustainable energy solutions would contribute to Ghana’s industrialisation ambitions.
Digitalisation especially in Africa creates the opportunity to drive economic growth. It creates an opportunity to leapfrog old technologies and employ modern solutions that can help industrialize economies.
Country Manager, Mr. Acheampong explained that “we chose to activate the story of Siemens in Ghana through this initiative because we know how important telling a story through fabric is across cultures and languages in Africa”.
As part of efforts to boost investor education and increase investor participation in the Nigerian capital market, The Nigerian Stock Exchange (NSE) has flagged off an above the line marketing campaign that amplifies the Exchange’s credential as a leading securities exchange that provides investors with varied investment options such as Stock, Fixed Income, Exchanged Traded Products (ETPs) and more.
Themed “The Multi-Asset Sustainable Exchange”, the campaign will be featured across print, broadcast, outdoor and digital media.
Commenting on the campaign, Mr. Olumide Orojimi, Head, Corporate Communications stated that “The campaign is coming against the backdrop of the innovative offerings NSE has birthed since its intentional transformation that commenced in 2011. During this period, the Exchange has achieved phenomenal milestones, deployed cutting edge technology for trading and the use of artificial intelligence to monitor its market; upscale securities in its market with the flagship listing of the first Sovereign Green Bond in an emerging market; establishment of an investors protection fund; launch of a corporate governance rating system and more recently the unveiling of the NSE Sustainability Disclosure Guidelines for quoted companies..
Oscar Onyema CEO The Nigerian Stock Exchange
“As the Exchange transits to a demutualized Exchange, its credential as multi-asset securities Exchange will be adequately communicated through series of creative messaging in this campaign. While investors’ appetite for capital market products continues to evolve, this campaign highlights NSE’s offering which transcends stocks. We are committed to driving sustainable products, responsible investment in a market that is orderly and transparent whilst leveraging cutting edge technology. This commitment is shared by all of our employees who continue to champion the development of new and improved experience for investors in our market”, said Mr. Orojimi.
GE to provide energy solutions to help foster economic development and growth in Benin and Cote d’Ivoire.
In Benin, GE will supply the nation’s first Advanced Distribution Management System (ADMS), this grid solution is expected to increase energy reliability and efficiency. In Cote d’Ivoire, GE will rehabilitate and improve the power capacity of the Ferke, Man and Taabo substations while reducing the losses in energy transmission.
GE Renewable Energy’s Grid Solutions business announced that it has signed two deals to build energy systems in Benin and upgrade three substations in Cote d’Ivoire.
These agreements align with GE’s commitment to providing scalable power solutions in partnership with governments and utilities to meet West Africa’s growing energy needs while developing self-sustaining electricity systems for businesses and households in the region.
Benin
In Benin, 85 percent of electricity utilised is currently imported from neighboring countries.
To strengthen the country’s grid and manage electricity losses that result during energy transmission, GE will design and supply the first Advanced Distribution Management System (ADMS) in Benin for the Société Béninoise d’Energie Electrique (SBEE) and undertake the rehabilitation of substations and telecommunication infrastructure at the National Distribution Control Center in Cotonou.
Part of GE’s Digital Energy portfolio, ADMS is engineered with adaptive algorithms and predictive analytics to help utilities operate the grid more efficiently and enable automation. The system will be able to predict issues, identify the faults on the grid and propose a restoration plan.
“The Distribution Management System (ADMS) will help optimize energy distribution, reduce electricity losses and minimize shortages,” said the National Coordinator for MCA-Benin II.
“This project is aligned with the government’s ambition to efficiently manage the generation from power plants, microgrids and other grid infrastructure to improve the quality, efficiency and availability of power to our customers. “This system will also help manage the security and maintain control of the grid.”
Cote d’Ivoire
Under this contract, GE will rehabilitate and expand three 225kV substations in Ferke, Man and Taabo. This project will help improve the electricity supply in the northern, western and central part of Côte d’Ivoire.
“With about 90% of the country’s population having access to electricity and the growing demand for energy, limited distribution systems cause a total energy loss of approximately 20% annually. There is a need to rehabilitate and strengthen the country’s grid infrastructure,” said Bile Gerard TANOE – Secretary General of CI-ENERGIES.
“This project will improve the power capacities of Ferke, Man and Taabo substations to help mitigate total energy losses and provide the reliability needed to limit the total unavailability of these critical substations,” he added.
“Energy is a key component for on-going development in Sub-Saharan Africa. With only 45 percent of electrification rates in many countries in the region, it is critical to develop an end-to-end solution to increase energy access and foster economic development,” said Lazarus Angbazo, President & CEO of GE Renewable Energy’s Grid Solutions business in Sub-Saharan Africa.
“These projects reinforce GE’s involvement in implementing key infrastructure for energy transmission and interconnection development in Africa through smart solutions and turnkey project expertise.”
GE’s Grid Solutions business provides complete, engineered solutions for high voltage (HV) substations to power generation companies, utilities, and industries, bringing together the right mix of high-voltage products through expert engineering and full project management. Grid Solutions has designed and implemented over 1,700 substation projects globally in the last 10 years.
About GE Renewable Energy GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions.
With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Yesterday, the bearish performance of the local bourse continued into the fourth consecutive trading session on the back of losses in DANGCEM (-0.5%), ETI (-3.3%) and ACCESS (-4.3%).
As a result, the Benchmark Index fell by 39bps to 29,553.12 points as YTD loss worsened to -6.0% while market capitalisation fell by N43.4bn to N11.1tn. In line with yesterday’s performance, activity level worsened as volume and value traded dipped by 8.1% and 48.9% to 498.8m units and N2.9bn respectively.
The most actively traded stocks for the day by volume were STERLING (124.8m units), CHAMS (114.7m units) and FBNH (55.4m units) while ZENITH (N653.8m), GUARANTY (N503.8m) and FBNH (N407.1m) led top traded stocks by value.
Bearish Sector Performance
Across sectors, performance was largely bearish as 4 of 5 indices under our coverage closed in the red. The Insurance index declined the most, down 2.5% as losses in REGALINS (-8.0%) and MANSARD (-7.3%) dragged the index while the Industrial Goods index trailed, inching southward by 0.5% following price depreciation in CAP (-9.9%) and DANGCEM (-0.5%).
Similarly, the Consumer Goods and Banking indices fell 0.4% apiece due to sell-offs in DANGSUGAR (-3.2%) and UNILEVER (-2.0%), ETI (-3.3%), ACCESS (-4.3%) and WEMABANK (-4.1%).
On the flip side, the Oil and Gas index extended its gains into another trading session following sustained buying interest in FORTE (+9.9%) and OANDO (+3.1%).
Investor Sentiment Strengthens
Investors sentiment as measured by market breadth (advance/decline ratio) strengthened to 0.6x from yesterday’s 0.3x as 11 stocks advanced relative to 19 stocks that declined.
The top performing stocks were CHAMS (+10.0%), FORTE (+9.8%) and VITAFOAM (+7.8%) while the least performing stocks for the day were CAP (-9.9%), UNITY (-9.3%) and ETERNA (-8.0%).
We do not expect this negative performance to persist in the final trading session of the week as we anticipate that investors will take advantage of the attractively priced.
Alero Ladipo
Executive Head, Marketing & Customer Experience
Old Mutual
Old Mutual, has launched its 2 in 1 Savings Plan for customers in Nigeria, especially young professionals and families. With a minimum monthly contribution of N5,000, customers can save up funds for a period of five or ten years to fund their future financial goals.
The plan also gives the customer the opportunity to access a part of the savings for immediate needs during the savings period, should the need arise; thereby providing financial security. Another critical component of the plan is the protection on the savings, so that in the event the policyholder passes away in the course of the savings plan, the assigned beneficiaries will receive the originally targeted sum as assured in the plan.
Alero Ladipo Executive Head, Marketing & Customer Experience Old Mutual
Commenting, the Executive Head, Marketing and Customer Experience, Old Mutual, Alero Ladipo said; “We understand that life is filled with a constant juggling of our priorities. Trying to excel in our career, expand our businesses, get another degree, start a family, raise the children, provide education for them; yet take care of our siblings and parents, all on an income is a stretch for many. At Old Mutual we realise that entrenching a savings culture will help individuals realise dreams that day to day life tries to take away from them. We know as a business with over 170 years of wealth creation and management that smart financial planning is the answer to a future of financial security.
“It is on the back of these insights that we enhanced the 2-in-1 Savings Plans to allows you save towards your life goals over period of at least 5 years and with the added benefit of insurance protection, so that if life’s uncertainty happens in the course of saving for your future dreams, a chosen beneficiary will still receive the targeted sum. In other words, if you have set out to save for your child’s education and death unfortunately occurs, the 2-in-1 Savings Plan protects that dream from falling apart and ensure that the child gets the targeted sum.”
ABOUT OLD MUTUAL
Old Mutual General Insurance Company and Old Mutual Nigeria Life Assurance Company are part of Old Mutual Limited which provides protection, savings, investment and lending services to 11.3 million customers in 17 countries across Africa, Asia and Latin America.
Having acquired the majority stake in Oceanic Life Assurance Company, Old Mutual has been operating in Nigeria since March 2013. In January 2014, Old Mutual also acquired a majority stake in Oceanic General Insurance Limited thereby offering both life and general insurance solutions tailored to meet unique individual and corporate client’s needs.
To the detriment of socio-economic developments, Nigeria has spent nothing less than N10 trillion on petrol import subsidy between 2006 and 2018. Let it be known: Nigeria is dancing on the edge of a razor blade by continuing its subsidy regime.
According to our recent research “Nigeria’s Petrol Subsidy Regime: Dilemma of the World’s Most Populous Black Nation” Nigeria currently imports an average of 91% of its daily petrol needs, thus disproportionately exposing local petrol prices to price shocks from international factors of production and exchange rate volatility.
There is a near perfectly inverse relationship between the fall in the value of Naira and the rise in the cost of imported petrol. That is, when next the Naira is devalued, Nigeria’s subsidy bill can be expected to jump.
Meanwhile, the continuation of petrol price regulation perpetuates safety nests for exceptional forms of corruption within the country’s subsidy regime. Import subsidy creates petrol price arbitrage – the differential between the regulated price in Nigeria and the high petrol prices in neighbouring countries – which is big enough to incentivise smuggling of subsidized products to neighbouring border towns. According to NNPC, there are 2,201 petrol stations in Nigeria’s porous border towns and coastal frontiers, with a combined fuel tank capacity of 144.9 million litres. Analysts argue, ringing corruption alert that the population around that area is far from justifying the size of the petrol market.
BudgIT notes with dismay that “fuel subsidy” deprives Nigeria of funds needed for critical socio-economic development as it discourages investors, who generally prefer a deregulated industry, from investing in the downstream sector especially in the area of refinery construction and operation.
For instance, the 10 trillion consumed by the subsidy regime is sufficient to construct 27,000MW of electricity or build about 2,400 units of 1000-bed standard hospitals across 774 local government areas of Nigeria, found our research.
We equally note that the Nigerian masses worship low oil prices. More so, the political class fears that increases in petrol price (and in the cost of living by extension), occasioned by a deregulated price regime, could become a flashpoint for mass uprisings and political instability. Nonetheless, we can never shy away from the opportunity cost of the corrupt subsidy regime.
Nigeria’s population is expected to balloon to 398 million people by 2050. With no strategic framework to end its subsidy program plus zero political will to reform the entire sector, the Nigerian government risks carrying the financial burden of a program that could drown out the development of its other sectors over the next 15 years.
“It’s high time fuel subsidy is removed. Efficient palliative measures should be provided for those that will be worse hit by the removal. Four sectors – Transportation, Power, Health and Education – should be prioritized to cushion the effects” stated Gabriel Okeowo, BudgIT’s Principal Lead.
While we are calling on President Muhammadu Buhari to do the needful, we also believe that funding for cheaper mass transit and subsidies to public institutions should be targeted for these groups.
