Following its award of preferred bidder status by the Federal Government of Nigeria in May 2017, the International Consortium led by GE last Friday in Washington D.C, signed an agreement to proceed with the Interim Phase of the Nigerian narrow-gauge railway concession.
Initiated by General Electric, the world’s premier digital industrial company, the Consortium is comprised of SinoHydro, a leading infrastructure construction services corporation, Transnet, a leader in transportation and logistics infrastructure management and APM Terminals, a global port, terminal and intermodal inland services provider.
In the interim phase of the rail concession, Remedial Works will be carried out on part of the narrow-gauge rail line system to make it technically and economically operable. Additionally, a joint operation will be established between the Consortium and the Nigeria Railway Corporation (NRC) with an initial supply of 10 locomotives and 200 wagons to augment the existing rolling stock in Nigeria.
This program is expected to deliver an increase in the number of available locomotives, thus increasing the frequency of passenger and freight rail services. In addition, freight haulage capacity by the end of the first 12 months of the interim phase is expected to increase roughly ten-fold, from its current less than 50,000 metric tonnes per annum to about 500,000 metric tonnes per annum.
Speaking on the occasion, Lazarus Angbazo, CEO of GE Nigeria said “GE is committed to the sustainable development of Nigeria and as such we are delighted to have reached this crucial stage of the project to revamp and revitalize the country’s legacy rail infrastructure system. The Consortium looks forward to commencing execution of this Interim Phase with the continued support of the Federal Government and the Ministry of Transportation. As operations begin, our strong partners, such as Transnet and SinoHydro, will bring their strong operating and development skills to the forefront.”
Following the commencement of the Interim Phase, the Consortium will conclude negotiations with the Federal Government on the terms of the substantive phase of the concession agreement that will expand service to up to 200 locomotives and associated rolling stock. This will see to the comprehensive rehabilitation of Nigeria’s narrow-gauge rail infrastructure and the return of rail transport as a key element in enabling the country’s socio-economic development.
Chief Executive of Transnet International Holdings Mr Petrus Fusi said, “We are pleased to be a partner in this ground-breaking concession and look forward to the successful execution of the Interim Phase with the government and the opportunity to add value.”
Similarly, SinoHydro Chairman, Mr. Ding Zhengguo mentioned, “This announcement is a step closer to the opportunity to transform rail infrastructure and transportation logistics in Nigeria; a country with huge potential.” He added “We are very excited to partner with this resourceful consortium to deliver value.”
APM Terminals has been actively investing and participating in Nigeria’s logistics infrastructure since 2006, and we are proud to be a part of this project to improve access for the Nigerian hinterland to the global logistics chain.” – David Skov, Head of Terminals IMEA added to the statements.
According to the Minister of Transportation, Hon. Rotimi Amaechi, “This milestone project is an unprecedented commitment by the Federal Government of Nigeria, which, combined with the GE-led Consortium’s drive to modernizing Nigeria’s rail infrastructure, will add immense value to Nigeria’s long term economic growth and productivity.” “This will be an important catalyst for small and medium enterprises and a key provider of almost incalculable socio-economic benefits for the many Nigerian towns and villages through which the rail network passes. “he added.
FG, GE Sign Interim Phase Agreement on Rail Concession
Marriott Lands in West Africa with Accra Marriott Hotel
Accra Marriott Hotel
Marriott Hotels, part of Marriott International, today announced its debut in West Africa, with the highly anticipated opening of Accra Marriott Hotel.Owned by African Hospitality Limited, the hotel is strategically located opposite the Kotoka International Airport, making it the perfect “Gateway to West Africa”.
Set in the heart of Airport City, a burgeoning urban development, the Accra Marriott Hotel is just a few kilometers outside of the central business district providing easy access to major corporate businesses, government entities and well known city landmarks.
“We are thrilled to open the Accra Marriott Hotel, a highly anticipated addition to our Africa portfolio and a significant milestone in our journey” said Alex Kyriakidis, President and Managing Director, Middle East and Africa, Marriott International.
“Accra is the heartbeat of Ghana, a dynamic city bustling with energy. A commercial, manufacturing, and communications center with great shopping and excellent nightlife, it makes an interesting travel destination both for business and for leisure. The Accra Marriott Hotel will add to the city’s maturing hospitality scene, inspiring guests with more forward-thinking experiences and aesthetically inspiring spaces that speak to their inventive nature.”
With 208 well-appointed rooms, 3 enticing dining venues, 800 square meters of meeting space, a pool and a fully equipped fitness center, Accra Marriott Hotel offers state-of-the-art business facilities. Contemporary design and local touches blend to create a distinct and vibrant aesthetic. Amenity-filled guest rooms, progressive dining, cutting edge technology, flexible and exemplary meeting facilities and a brand new social event experience make every guest stay special, while innovative spaces, such as The Greatroom, allow guests to seamlessly blend work and play.
Modern and sophisticated in its approach, providing experiences that keep the mind balanced, sharp and inspired, the hotel is the ideal starting point for travelers to do their business or discover the bustling city of Accra.
Boldly transforming itself for mobile and global travelers, Marriott Hotels inspires brilliance leading the industry with innovations.
At Marriott Accra Hotel, guests can experience the ease of mobile check in and enjoy an elevated guest experience through Mobile Guest Services, seamlessly delivered with the globally renowned Marriott Hotels service.
NCC EVC, Umar Danbatta to Deliver Business Journal 10th Anniversary Lecture
Prof. Umar Danbatta
Executive Vice-Chairman
Nigerian Communications Commission
Professor Umar Garba Danbatta, Executive Vice-Chairman, Nigerian Communications Commission (NCC) will deliver the Business Journal 10th Anniversary Lecture on Thursday, June 7, 2018 at Sheraton Hotel, Ikeja (Lagos). The lecture would be chaired by Engr. Ernest Ndukwe, Chairman, OpenMedia Group.
Theme: Infrastructure & Economic Growth: Exploring The Strategic Alliance.
The guest speakers include Professor Akpan Ekpo, Director-General, West African Institute for Financial & Economic Management (WAIFEM); Mr. Tope Smart, Group Managing Director/CEO, NEM Insurance Plc ; Dr. Obadiah Mailafia, Former Deputy Governor, Central Bank of Nigeria (CBN) and Engr. Chidi Izuwah, Director-General, Infrastructure Concession Regulatory Commission (ICRC).
Commenting on the anniversary, Prince Cookey, Publisher/CEO of Business Journal said: “Indeed, the first 10 years comes once in the life of an individual or organisation. For us at Business Journal, clocking a decade in the challenging media scene in Nigeria is quite a feat. It is a feat driven by passion for what we do; the innate quality of our people and the drive to deliver greater value to our various stakeholders as well as create better future for the organisation. We owe a lot of gratitude to numerous individuals and organisations across various sectors of the economy for supporting us these past 10 years in a difficult business in a difficult and unfriendly business environment.”
On the theme, Cookey added: “Our decision to situate the theme on the relationship between infrastructure and economic growth is to send a clear message to key stakeholders (political, economic, social) in the Nigeria Project that our nation cannot achieve sustainable economic growth without sustainable investment in infrastructure. We need infrastructure to grow the economy and move our society forward.”
On projections for the future, Cookey said: “Our 10th anniversary lecture offers us a unique opportunity to reflect on our first 10 years in the market and project for the next. We have already developed a Strategic Plan of Action to drive our processes going forward. The key focus would be to add more value to our readers and advertisers through strategic digital channel expansion, corporate partnerships and tailor-made editorial content. Clearly, we are marching confidently on the path to greater market mileage in the years ahead. Accordingly, we enjoin discerning bodies in government and Corporate Nigeria to join the Business Journal train to reap bountiful media harvest.”
He said the fact that prominent Nigerians from the government, Corporate Nigeria and academia graciously accepted the invitation from Business Journal to speak at the lecture represents a worthy testimony to the goodwill and brand reputation of Business Journal in and outside the media industry.
He said the positive development will undoubtedly make the 10th anniversary lecture a memorable event.
Consolidated Hallmark Insurance Reports Total Assets of N9.4bn
Mr. Eddie Efekoha
Managing Director/CEO
Consolidated Hallmark Insurance Plc
Foremost underwriting firm, Consolidated Hallmark Insurance (CHI Plc) has reported a 108% leap in its profit for the financial year ended 31stDecember, 2017.
In its results, which were submitted within the regulatory timelines and recently approved by all regulators, including the capital market, the company posted a Profit After Tax of N406,205,406 when compared with the N194,987,845 of the 2016 Financial Year.
Also, Profit Before Tax grew by 74% from N368,133, 129 in 2016 to N641,052,022 in 2017.
Further details of the results made available to shareholders of the company show appreciable progress in investment activities as well. Income from this arena grew from N472.3 million to N796.2 million in 2017. Meanwhile, the Total Assets of the company have risen by 27% from the N7.44 billion of 2016 to N9.49 billion.
Revenue reported for the period through Gross Premium Written was N5.680 billion, while a Net Underwriting Income ofN4,053,742, 495 was recorded. The company continues to fulfil its obligations through prompt claims settlement as gross amount paid out in this regard during the year under review was N3.354 billion.
The positive result is an affirmation of the recent assurance by the Managing Director of the company, Mr. Eddie Efekoha to shareholders that they should expect more returns in the nearest future from Consolidated Hallmark Insurance even as recent capacity expansion and growth initiatives will help to grow revenue.
Plans are already afoot to hold the Annual General Meeting, where in line with its policy of rewarding shareholders for their steadfastness, dividend payment will be proposedto shareholdersfor approval.
CHI Plc has paid dividends seven times in the last ten years.
Equity Flashnote: Foreign Investors Still Calling the Shots
Saturday, April, 21, 2018 marked the one year anniversary of the CBN’s (Central Bank of Nigeria) launch of the Investors and Exporters’ (I&E) FX window.
Although the policy was pitched almost a year after the CBN originally reneged on the June 2016 announcement of a transition to a flexible foreign exchange framework, initial scepticism which greeted I&E fizzled within weeks post-introduction after FX transactions in the window cumulated to US$1.9bn by May-2017.
The singular act of a market reflective pricing of foreign exchange, coupled with the recovery in global oil prices as well as the stability in domestic production, following cessation of militancy attacks on oil installations, reset the stage for a broad based macroeconomic rebound.
Shortly afterwards, exacerbating inflationary pressures began to moderate – settling at 13.3% in March 2018, the economy slipped out of recession in Q2:2017 and grew 0.8% Y-o-Y in 2017, pressure on consumer spending power also tapered while recovery from external sector shock materialized amid improved export figures (most especially from crude oil).
Most remarkably, Foreign Portfolio Inflow (FPI) data has reflected the attraction of foreign investors into the Nigerian equities market with inflow into equities accounting for 29.7% and 49.6% of total capital and FPI flows respectively; resulting in a 42.3% equity market return in 2017 with NSE ASI as the 11th best performing index in the World and 2nd in Africa.
The equities market rally of 2017 post-FX market liberalisation saw investors taking advantage of cheap and attractive valuations which were previously jettisoned due to demand paucity from foreign investors. Particularly, tier-1 banking stocks as well as premium consumer goods and industrial goods stocks drove the positive sentiment.
In line with historical trend, domestic investors joined the bandwagon towards Q4:2017 especially after the gradual moderation in fixed income yields following the FGN’s decision to restructure debt portfolio and the CBN’s cessation of long dated OMO bill offerings.
Whilst FPI flow recovery post I&E introduction is nearing the pre-2014 shock levels of US$14.9bn with the 2017 inflow at US$7.3bn, attraction of Foreign Direct Investment (FDI) has been steadily slow, dwarfing the 2014 annual levels by 56.9%, notwithstanding structural reforms policy document rolled out by the fiscal Authority.
The Economic Recovery and Growth Plan (ERGP), despite having a launch date preceding the I&E, has achieved very little in generating patient real sector FDI flow with long lasting impact on employment and growth; thus begging the question; Where is our FDI?
But more essentially, recent lull in foreign equity investor sentiment, post-January 2018 Bull Run, suggests more dangerously, the dominance of foreign investors in shaping market sentiments and propelling positive equity market trends or otherwise.
What do equities hold for the rest of 2018 and are there still bright spots for the market in the build-up to the 2019 General Elections? Should Investors “Sell in May and Go Away“ or are there still cherry-picks plausible for potential upsides?
AMCON Purchased N181bn Non-Performing Loans from Banks
Ahmed Kuru
MD/CEO
AMCON
The Managing Director/Chief Executive Officer of Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has called on agencies that are saddled with the responsibility of regulating the aviation industry and indeed other critical sectors of the economy to adopt the same template, which the Central Bank of Nigeria (CBN) used in streamlining banking operations in the country.
Kuru was a guest speaker at the 6th Nigeria Transport Awards and Lecture where he presented a paper entitled: “AMCON’s intervention in Transport and Allied Sector; Achievements, Challenges and Prospects.” Explaining the proposed template, the AMCON boss said such approach will ensure stiffer corporate governance in the business of aviation and other allied critical sectors; minimize risks as well as ensure that the experiences, which necessitated AMCON intervention in Arik and Aero will not recur.
Kuru who was represented at the event by Mr. Kamilu Omokide, a Senior Vice President at AMCON, argued that the huge debt of the corporation would have been avoided if the affected companies had proper corporate governance structures that took better business decisions. But with many failed entities as a result of poor decisions that led to huge non-performing loans, he said the government had no choice then but to create AMCON to mop-up the bad loans thereby stabilising and revitalising the Nigerian economy.
To do that effectively, AMCON according to him purchased non-performing loans of about N181 billion from various banks. But of this lot, 90 per cent of the loans purchased was in the aviation sector. He said despite plans to aid their resuscitation with additional investment of N40billion on very good terms, there were still no light at the end of the tunnel, which compelled AMCON to appoint Receiver Managers over a lot of the companies including Arik and Aero airlines.
He said, “AMCON was created to be a stabilising and revitalising tool in the Nigerian economy. Towards achieving our mandate, we purchased non-performing loans of about N181 billion from various banks. Over 90 per cent of this was in the aviation sector. To place the companies in a position to recover and generate adequate cash flow, we gave additional un-lending facilities (in collaboration with Central Bank of Nigeria and Bank of Industry) of almost N40 billion on very good terms. Unfortunately, notwithstanding this support, the companies could neither pay the old nor new loans. We have therefore been compelled to appoint Receiver Managers over a lot of the companies, the biggest being Arik and Aero.”
Kuru further noted that AMCON’s intervention in sectors including the aviation industry has not come without its challenges, which stem from shareholder actions, lack of support by some trade creditors, some foreign lenders, and increased union demands but said these were not unexpected and have been professionally and transparently handled over the period.
He further said, “The new management in Arik had to take bold decisions to downsize its operations, especially cutting down all the long haul flights, due to the losses being sustained on those operations, and the lack of equity capital to absorb the losses. Generally there was the need to reassure the travelling public. AMCON is an asset management company, not a consultancy firm to run airlines. So we got professionals to do the job. They are the ones running the airlines. There were skepticism in some quarters earlier on but the narrative has changed. Nigerians are happy with our intervention in the transport sector. However, a lot still needs to be done.”
With a population currently estimated to be 180 million and with the abundant human and natural resources of Nigeria, Kuru also stated that the prospects in the transport sector of Nigeria remains huge. Nigeria he insists is naturally endowed geographically to be a global hub. And with the abundance of water and land mass it is possible to create a harmonious rail, sea, road and air transport sectors to the benefit of Nigerians and the economy.
In conclusion Kuru said, “The aviation and transport sector requires solid capital to make it deliver for the good of the Nigerian people. It will require a measure of policy consistency and governmental support to thrive. However, from our experience, no matter the capital thrown at the sector, if corporate governance is not strengthened, it will still fail. The absence of governance or quality governance and sound financial risk management systems is at the heart of the failures that are common in the sector. I urge regulators to act with courage by insisting on proper governance in airlines. I recommend they look at the work being done by CBN and Financial Reporting Council to improve the practice in airlines.”
Linkage Assurance CEO among Top 25 Capital Market Performers in 2017
L-R: Mr. Abimbola Ogunbanjo, President of the Nigerian Stock Exchange(NSE) presenting Award to Dr. Pius Apere, Managing Director/CEO, Linkage Assurance Plc during the BusinessDay Top 25 CEOs Award in recognition of stellar corporate performance in the Nigerian Capital Market in 2017 held in Lagos.
The Managing Director/CEO, Linkage Assurance Plc, Dr. Pius Apere has been listed among Top 25 Chief Executive Officers (CEOs) who delivered the most value to stakeholders, and contributed to the stellar performance recorded by the Nigerian capital market in 2017.
Last year, listed stocks gained N4.36 trillion in market capitalisation, a development that made the Nigerian capital market one of the best in the world.
The 25 CEOs who were celebrated during the BusinessDay Top 25 CEO Awards held in Lagos accounted for over 60 percent of the success recorded on the NSE. That means they added some N2.6 trillion to market value in 2017.
Dr Pius Apere led new Management of Linkage Assurance Plc with the support of the Board recorded significant achievements in 2017 leading to being awarded as one of the Top 25 CEOs.
In the 2017 financial year, the Company recorded gross premium income (GPI) of N4.102 billion as against N4. 032 billion in 2016, and was able to beat negative market sentiments that affected the company before the new management came in early 2017.
“From 2017 the Company share price has rose above 90 kobo and we were in a position to carry out half year 2017 Accounts audit exercise successfully within two months to pay interim dividend, having wiped out the negative retained earnings which existed for over 10 years. The Company is also in a position to pay final dividend from 2017 audited Accounts which awaits NAICOM’s approval.”, according to senior official in the company.”
The Company had an improved investment performance and profitability in 2017 despite the challenges in the market environment leading to better investment returns to shareholders in terms of payment of dividend and increased shareholders fund.
The Company also in 2017 brought in a new marketing strategy that focused on client/insured, with the ultimate aim of deepening the company’s marketing outreach which will enable growth of gross premium income, which is expected will manifest from 2018.
“We have developed our IT infrastructure in 2017 to put the company in competitive position in line with our peers. To improve our operational efficiency, we have deployed the Virtual Private Network (VPN) to our 13 branches in 2017 to ensure seamless operational link and/or fully integrated with Head office.”
“Online sales platform including document Management System (DMS) has been developed in 2017 and deployed in 2018, having got NAICOM’s approval.”
A lot of progress was made in the area of market visibility, including launching of new innovative retail products, strengthened ties with brokers for bigger market share, closing the gong ceremony at NSEetc to carry all market players along, targeted at increasing the company’s brand visibility as part of its aggressive revenue generating strategy.
Also part of the initiatives, is a new staff performance evaluation system which was introduced in 2017 to enhanced the creation of new work culture including ability to work towards pre-agreed deadlines and/or timelines) within the Company.
“This has increased the level of staff productivity which in turn increased substantially staff contributions to the Company’s profitability (bottom line).”
PTAD Adds 7,969 South-West, North-Central Pensioners to Payroll
The Pension Transitional Arrangement Directorate (PTAD) has added 7,969 Civil Service Pensioners to its payroll to receive regular monthly pension payments. These Pensioners were verified in the South West & North Central in Q4 2017 and have been paid their March 2018 pension.
The addition of this group has improved the economic livelihood of pensioners who have been deprived of their rights for a long period.
Thus, further supporting the role of PTAD in making sure the labours of our heroes is not in vain. Before this addition, over 19,500 verified civil service pensioners from the North West, South East, North-East and South-South had been reinstated and paid their arrears.
Also on-going is the computation of benefits for over 5,000 verified Civil Service Pensioners. This will conclude the payrolling of all verified Civil Service Pensioners
In January 2018, the Civil Service Pension Department (CSPD) paid N2.215 billion to 111,525 pensioners, 219 Retired Permanent Secretaries and Heads of Service. For the month of February, N2.216 billion was paid and in March, N2.216 billion was paid to pensioners, Retired Permanent Secretaries and Heads of Service.
For the Parastatals Pension Department (PaPD) which started verification of defunct and privatised agencies in Q4 2017, 98,259 pensioners were paid monthly pension of N4.097 billion in January 2018. For the month of February, N4.134 billion was paid to the pensioners while N4.117 billion was paid in March.
For Pensioners verified in Q4 2017 & Q1 2018 under the Parastatal Pension Department (FHA, NNN, NICON, Nigerian-Re, DSC& NITEL/Mtel) the accurate computation of their benefits is currently being made.
Over 30,000 pensioners under the defined benefit scheme who were yet to be pay rolled over the years have been cleared and added to PTAD payroll post verification of Civil Service, Police, Customs, Immigration and Prisons Pensioners across the country.
Canada to Host The Commonwealth Africa Forum in July 2018
Senior Government and Business Leaders from Africa and North America will gather in Toronto from the 5th – 8th July 2018 for The Commonwealth Africa Forum Toronto 2018 with the theme: Africa – Open for Business.
Past Speakers at CAFI EVENTS have included: HRH Prince Andrew The Duke of York, Gen. Yakubu Gowon (Former Nigerian Head of State); Rt Hon Baleka Mbete (Speaker of the Parliament of South Africa), Chief Olusegun Obasanjo (Former President of Nigeria), H.E John Dramani Mahama (Former President of Ghana), Amina J Mohammed (UN Deputy Secretary General) represented by H.E Bience Gawanas (UN Under Secretary for Africa), H.E Mrs Toyin Saraki (Wife of the Senate President of Nigeria), Dr. Hassan Ahmed Hilal (Minister of Environment Sudan), Chief Mrs. Folorunso Alakija (Vice Chair – Famfa Oil and Richest Black Woman), and more.
The Commonwealth Africa Forum is a premier event for those curious and excited about Africa. It is an excellent opportunity to learn about the challenges and opportunities on the continent.
The Canadian edition of The Africa Forum is conceived as a high level thematic business-related event with the vision that Canada and Africa must move beyond donor/recipient relationship towards long-term cooperation based on principles of ownership, partnership and solidarity.
“Africa is a continent of paradox. It has buckets of possibility and investment opportunity, and it is well on the path to achieving that full potential however if still faces a multitude of challenges”, says Adonis Abboud, Member of the Board of Governors of the Commonwealth Africa Initiative.
Convening over 250 delegates and a number of high profile speakers, the Canada Forum will offer unrivalled insight into business on the continent from the boldest innovators and decision makers in Africa. A gala dinner will close the Forum which will focus on Doing Business in Africa, with the theme: Africa, Open for Business.
Three of the five fastest growing economies in the world are in Africa. Africa has 300+ tech hubs in 93 cities across 42 countries. Increased internet penetration, mass urbanization and growth in smartphone adoption, combined with rapid population growth, and has made Africa extremely attractive to investors.
Africa is the continent of the future: Africa is home to the world’s youngest population. In 20 years, the number of sub-Saharan Africans reaching working age (15-64) will exceed that of the rest of the world combined. By 2040, less than 25 years from now, half of the world’s youth will be African or of African descent.
“It is in light of this that the Forum will feature a High Level Youth Dialogue with participation from Young leaders from across Africa and North America. Conversations at the Youth Forum will consider how Diaspora and African Youths can collaborate to help Africa fulfil the aspirations of the AU Agenda 2063 and the SDGs” says Napoleon Jay, Co-Chair of the Local Organising Committee.
The Forum will bring together African and North American business leaders representing multi-nationals, large corporations, small and medium-scale enterprises and confederations, civil society representatives and multilateral and regional institutions to discuss how to improve the business and investment climate between Africa, Canada and North America at large.
TAF Canada will also be an opportunity to showcase that Canada is also open for business and investment and the forum will showcase Canadian opportunities to African investors. In the words of Prime Minister Trudeau at the World Economic Forum “We have a diverse and creative population, outstanding education and health care systems, and advanced infrastructure, we have social stability, financial stability and a government willing to invest in the future”.
Come listen to distinguished speakers who are helping to shape the future and trajectory of the abundant continent called AFRICA.
The event is organised by the Commonwealth Africa Initiative (CAFI) in association with Common Cause Africa Canada, YTI Canada, APO Group, Piety Inc, Pan African Diplomacy Center and other organisations.
NSE to Host 2018 ASEA Conference
The Nigerian Stock Exchange (NSE) has emerged the preferred host of the 22nd Annual Conference of the African Securities Exchanges Association (ASEA) scheduled to hold from 25 to 27 November, 2018, at the Oriental Hotel Lagos. NSE won a similar hosting right for the 2009 edition which was held in Abuja.
The Annual Conference is ASEA’s flagship event, and Africa’s foremost capital markets. Themed “Champions On The Rise: Africa’s Ascension To A More Sustainable Future”, the 2018 edition has a robust agenda and an impressive array of thought leaders as speakers.
The two-day conference will feature keynote addresses and presentations, panel discussions and interactive sessions on burning issues around Africa’s global competitiveness, emerging technologies and inclusive growth, within the broader perspectives of sustainability. It will also provide a platform for networking and business opportunities.
Mr. Oscar N. Onyema, CEO, NSE and ASEA President stated that “the ASEA conference will continue to be a major platform of cooperation for the African business community. The conference will provide a great opportunity for investors, policy makers, Government, leaders of African exchanges, media and other market stakeholders to network, share valuable experiences, as well as discuss the future development of financial markets in Africa, with the goal of mapping a route to a sustainable future for the African economy.
“About 1,000 delegates are expected at the event which is considered one of the most important financial conferences of the continent due to its attraction to eminent thought leaders, important decision makers and investors interested in the African market”.
“We will leverage the opportunity to reinforce the position of The Nigerian Stock Exchange as a sophisticated bourse, energize the Nigerian capital market eco-system, and showcase Nigeria as an attractive tourism destination amongst others, added Onyema.”
It will also be recalled that NSE successfully hosted the 5th Building African Financial Markets (BAFM) seminar from 28 to 29 April, 2016. It was the first time the capacity building seminar will be hosted outside of South Africa.
About ASEA
ASEA is the premier Association of 28 securities exchanges covering 32 countries in Africa. It aims at developing its members, enhancing the global competitiveness of member exchanges and providing a platform for networking and exchange of information.
Established in 1993, ASEA works with African member exchanges to unlock the potential of the African Capital Markets by providing an authoritative information portal on African capital markets, and providing aggregated statistics and information on African exchanges.
ASEA’s vision is to enable African Securities Exchanges to be key drivers of the economic and societal transformation of Africa by the year 2025.
Its mission is to provide a forum for mutual communication, exchange of information, co-operation and technical assistance among its members to facilitate the process of financial integration within the region, for the effective mobilisation of capital to accelerate the economic development of Africa.
FBN Holdings Reports N595bn Earnings in 2017
Mr. UK Eke
Group Managing Director
FBN Holdings Plc
FBN Holdings Plc has rreleased its FY-17 financial result showing gross earnings (+2.27%) grew during the period to NGN595.02 billion, coming only 1.45% above our estimate.
PBT and PAT recorded upturns of 147.63% and 178.78% to NGN56.83 billion and NGN47.79 billion respectively, falling short of our expectation by 13.80% and 11.27% and Bloomberg’s polled estimates by 17.20% and 14.96% respectively.
According to Cordros Capital, the uptick in Gross earnings was buoyed by growth in interest income (+15.87% to N469.59 billion), and fee and commission income (+4.33% to NGN74.45 billion) – both constituting 91% of Gross earnings. Notably, net insurance premium also grew by 1.72% to NGN10.23 billion.
The rise in interest income was driven by improvement in interest earnings on investment securities (+50.22% to NGN173.29 billion) and loans and advances to customers (+6.25% to NGN288.59 billion), which muted the 57.92% decline in interest on loans to banks (NGN7.71 billion). Interestingly, total customers loan book decreased by 3.97% to NGN2 trillion, while loans to banks surged 67% to NG742.93 billion.
The interest expense also increased by 36.92% to NGN138.06 billion in the year — much faster than the 10.23% rise in interest bearing liabilities (IBL) to NGN4.23 trillion – indicative of a more expensive mix in the IBLs. This can be largely attributable to the 32.87% increase in expensive borrowings (9.95% of total IBL: NGN420.92 billion), as against the slower rise in total deposits (90.05% of total IBL: NGN3.81trillion) by 8.19%. As a result, the cost of fund increased by 63 bps to 3.42%.
Expansion in our computed yield on asset for the period by 25 bps to 12.03%, together with the 63 bps increase in cost of fund, translated in the 30 bps dip in NIM to 8.40%.
Meanwhile, significant decline in forex gains by 76.36% to NGN21.06 billion – owing to the 83.16% drop in revaluation gains on the Group’s long forex position – offset the growth in net fee and commission (+3.40%), and the significant upturn in profit on financial instruments at fair value through profit or loss; causing a 34.36% decline in NIR to NGN103.08 billion.
Provision for loan losses recorded its first y/y decline since 2012 (-67.64% to NGN12.30 billion), contracting by 33.45% to NGN150.42 billion. Accordingly, the cost of risk dropped 272 bps to 8.13%. The growth in total loans and advances by 8.52% NGN2.74 trillion and a slower pace of increase in deposits by 8.19% (vs. +12.99% in 2016FY) NGN3.81 trillion, translated to the 22 bps increase in the loan-to-deposit ratio to 72.05%.
The Group’s total opex grew by 7.73% to NGN238.02 billion (slower than the average inflation rate during the year), following a 10.39% and 84.52% rise in other operating expenses and insurance claims respectively. Accordingly, the higher opex, coupled with the 5.34% decline in operating income (NGN444.84 billion) drove the rise in cost-to-income ratio by 649 bps to 53.51%.
The impressive pre and post-tax profits reported benefitted from the low bases of 2015 and 2016 which were dragged by high impairment charges. The lower effective tax rate of 15.91% (vs 2016: 25.31%) also aided growth in the bottom line.
Performance in Q4-17 was also broadly positive, compared to the same period last year, as Gross earnings, PBT and PAT grew by 29.23%, 110.57%, and 142.22% to NGN156.09 billion, NGN1.39 billion, and NGN1.95 billion respectively. Quarter-on-quarter, however, PBT and PAT dropped by 92.97% and 88.10% respectively.
Net interest income (+9.49% y/y; -14.49% q/q) recorded positive growth, with both interest income (+21.78% y/y, -8.24% q/q) and interest expense (+59.91% y/y; +8.66% q/q) posting upticks. Growth in net gain on investment securities (+119.02% y/y; +76.97% q/q) and forex income (+209.93% y/y and +2502% q/q), supported the positive performance in NIR (+80.55% y/y, +78.93% q/q).
Loan impairment charges (+5.76% y/y; +50.19% q/q) and total opex (+7.97% y/y; 6.65% q/q) in the quarter rose to NGN52.84 billion (5.76% higher than our estimate) and NGN62.67 billion (7.97% higher than we expected) respectively.
Sovereign Trust Insurance at NCRIB Members’ Evening
L-R: Barrister Rotimi Edu, Chairman, Quicklink Insurance Brokers Limited, Dr. (Mrs.) Bola Onigbogi, Deputy President, Nigerian Council of Registered Insurance Brokers, (NCRIB), Mr. Sola Tinubu, President, Nigerian Council of Registered Insurance Brokers and the Managing Director/CEO, Sovereign Trust Insurance Plc, Mr. Olaotan Soyinka at the April Edition of the NCRIB Members’ Evening hosted by the Company at the NCRIB House in Lagos.
NSE Promotes Earth Day, Signs Corporate Recycling MoU with RecyclePoints
L – R Shows Mazi Alison Ukonu, Chief Executive Officer / Co-Founder, RecyclePoints Limited; Bola Adeeko, Head, Shared Services Division, The Nigerian Stock Exchange (NSE) and Olumide Orojimi, Head, Corporate Communications Department, NSE during the signing of Memorandum of Understanding (MoU) with RecyclePoints Limited for the collection and recycling of waste materials generated at The Exchange’s offices at the Exchange recently.
The Nigerian Stock Exchange (NSE) is pleased to announce that it has signed a Memorandum of Understanding (MoU) with RecyclePoints Limited for the collection and recycling of waste materials generated at The Exchange’s offices. This initiative is also a demonstration of the Exchange’s effort to ‘End Plastic Pollution’, which is the theme of this year’s Earth Day, celebrated globally on April 22, every year.
The Exchange, as part of its Corporate Social Responsibility (CSR) drive, is always seeking innovative ways to reduce its environmental footprint. In line with this objective, NSE has engaged RecyclePoints for the collection and recycling of waste materials generated at its offices, starting with Lagos and Ibadan, under RecyclePoints’ Corporate Recycling Program. The NSE commenced an internal workplace recycling program in 2013.
Speaking at the signing ceremony of the MoU, Mr. Bola Adeeko, Head, Shared Services Division, NSE said, “As a sustainable stock exchange, we are committed to supporting the United Nations’ Sustainable Development Goals as it relates to responsible production and consumption. In addition, environmental sustainability is one of our key CSR pillars and we believe that reducing the waste we send to the landfills through effective recycling is good for the environment and for the economy as well. By sorting our waste and sending applicable items such as paper, plastic and glass etc. for recycling, we are creating jobs for the recycling sector and helping industries save cost on essential raw materials, while actively protecting the environment.
More importantly, as a leader in the African business space, we are confident that this move will encourage other businesses to embrace corporate recycling, thereby igniting a good waste management culture across board.”
Commenting on the signed agreement, the Chief Executive Officer, Recyclepoints Limited, Mr. Mazi Ukonu said, “We at RecyclePoints are very delighted that The Nigerian Stock Exchange, as a responsible corporate citizen, has taken this bold step to implement a Corporate Recycling Program through our platform, thus further strengthening the achievement of its sustainability and environmental commitments. There has been a global call for corporate entities to create shared value and explore solving social issues as opportunities for competitive advantage. Signing this MoU exemplifies NSE’s strategic plan in finding innovate avenues of helping to solve social problems.”
He also called on entities quoted on the Exchange to emulate NSE by subscribing to RecyclePoints’ Corporate Recycling Program.
RecyclePoints is a waste recycling and social benefit company that motivates people to recycle their everyday waste by creating value from recycled products and operating incentive based schemes.
Ecobank Unveils Fintech Challenge for African Start-ups
Ecobank, the leading pan-African banking group, is inviting African fintech entrepreneurs to enter its Ecobank Fintech Challenge.
Now in its second year, the initiative gives African start-ups the chance to promote their fintech solutions, and potentially to partner Ecobank in rolling-out their solutions across Ecobank’s 33 markets. Ecobank is currently welcoming submissions from all start-ups and developers in any of Africa’s 54 countries to enter its 2018 Ecobank Fintech Challenge at http://EcobankFintech.com.
10 Finalists will be selected to participate in an Awards and Innovation Fair at the global headquarters of Ecobank in Lomé, Togo in July 2018. Following a series of pitches from the finalists, a panel of judges will select the top three winners, who will receive cash prizes worth $10,000, $7,000, and $5,000 respectively.
All 10 finalists will also be conferred Ecobank Fintech Fellows and will qualify to explore opportunities to partner with Ecobank including:
- Multi-national product roll-out: the most commercially viable start-ups can launch their products in Ecobank’s 33 markets across Africa
- Service provider partner deals: start-ups with deep capabilities to become pan-African service partners within Ecobank’s ecosystem
- Mentoring and networking support: founders will be conferred as Ecobank Innovation Fellows for a year, which grants them access to networking and mentoring from Ecobank’s vast global network of technology leaders, fintech experts, investors and management coaches.
Mr. Ade Ayeyemi, Group CEO, Ecobank Transnational Incorporated, reiterated Ecobank’s dedication to support innovations in banking and finance across the continent, stating, “We, at Ecobank, believe that the current winds of change led by technology and innovation will redefine how banks do business, and indeed the relationships people have with their money. We want to be at the forefront of this change, in partnership with Africa’s rising start-ups, and that is why we created the Ecobank Fintech Challenge”.
Mr. Eddy Ogbogu, Ecobank Group Executive for Operations and Technology said, “The maiden 2017 edition of the Challenge proved that Africa has an impressive army of highly capable fintech start-ups. Ecobank is looking forward to another successful competition.”
Ecobank Fintech Challenge was designed in partnership with the advisory firm Konfidants and is supported by several partners across Africa and globally.
Applications for the competition will close on 20th May, 2018.
MainOne’s West Africa Expansion Boosted by Cote d’Ivoire Licence
As part of its West Africa expansion, connectivity and data centre solutions operator MainOne has secured a license to expand national and international connectivity services in Cote d’Ivoire.
The C1B license, received from Minister Bruno Koné, the country’s Minister for Communication, Digital Economy and Postal Services, will enable MainOne land its trans-Atlantic submarine cable and build transmission infrastructure in Cote d’Ivoire, to strengthen connectivity, reduce international capacity costs and support wholesale customers, major operators and Internet Service Providers.
Cote d’Ivoire authorities believe that the construction of a fourth cable authorised by the government will improve the international connectivity of the country and will provide a lot more opportunities for the national market while increasing competition.
“We have just taken an important step through this authorisation for the improvement of the telecommunication infrastructure of our country, specifically the improvement of international connectivity. MainOne cable will have an impact on price and quality and will strengthen the security of our infrastructure”, declared Minister Bruno Koné.
The entry of MainOne, an open-access connectivity services provider will further democratize the international bandwidth market in Cote d’Ivoire and neighbouring countries and drive down bandwidth costs for local Internet Service Providers, Telcos and indigenous businesses.
“Cote d’Ivoire is the largest economy in the West African Economic and Monetary Union (WAEMU) and a very important hub for business and transport in West Africa. The dynamism of the national economy and accelerated development of the digital economy in Cote d’Ivoire as well as its regional leadership makes it a natural hub for the West African region and guided MainOne’s decision to invest in Cote d’Ivoire”, said Funke Opeke, Chief Executive Officer of MainOne.
As part of an overarching plan to invest close to $20m in Cote d’Ivoire with a focus on the provision of wholesale connectivity services, MainOne has obtained the license and will commence the construction of its digital transmission cable in June 2018, to be concluded in the second half of 2019.
Its cable landing will provide open-access infrastructure within Cote d’Ivoire and other WAEMU countries to expand internet access for all users in the region and support rapid development as well as facilitate increased non-resources trade and improve public services to aid the evolution of regional businesses.
“By investing and encouraging the business ecosystem within West Africa, we hope to bring meaningful technology solutions to businesses, to enable them in their quest for improved productivity and efficiency through dedicated and reliable connectivity services. We are prepared to collaborate with incumbent operators towards enhancing regional integration and global access,” Ms. Opeke concluded.
MainOne is committed to deepening broadband access via fibre infrastructure and data centres across West Africa.
With service delivery in 10 countries including Nigeria, Ghana, Cote d’Ivoire, Burkina Faso, Togo, Cameroun, Benin, Niger, Senegal and Chad, MainOne operates a 100G international submarine cable system which guarantees highly reliable connectivity to support the growing demand for Internet access and bandwidth-intensive applications such as eCommerce, Content providers, OTT players and electronic banking and payment services via 3/4G mobile networks.
The MainOne Submarine cable was the first privately owned cable in West Africa spanning 7000KM with a capacity of 4.96 TBPS to connect West Africa to Europe via a landing in Portugal and multiple routes to London, Paris and Amsterdam.