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Bellwethers Drive Market Rebound… NSE ASI up 2.4%

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NSE

The Domestic bourse appreciated yesterday following renewed interest in market bellwethers, hence the All Share Index rose 2.4% to settle at 43,330.54 points while YTD return improved to 13.3%. Buying interest in DANGCEM (+5.0%), NIGERIAN BREWERIES (+4.5%) and NESTLE (+3.0%) buoyed performance.

As a result, investors’ wealth increased by N370.0bn as market capitalization jumped to N15.5tn. In the same vein, activity level increased as volume and value traded inched 30.3% and 22.7% higher to 438.6m units and N10.8bn respectively. FCMB (192.9m), ACCESS (49.6m) and FBNH (48.1m) were the most traded stocks by volume while NESTLE (N2.3bn), DANGCEM(N2.0bn), GUARANTY (N1.2bn) led the most traded stocks by value.

Industrial Goods Index Leads Bullish Sector Performance
The Industrial Goods index led the gainers chart, up 4.1% primarily on the back of a rally in DANGCEM (+5.0%) and WAPCO (+3.8%). The Consumer Goods index trailed, rising 2.4% as NIGERIAN BREWERIES (+4.5%) and NESTLE (+3.0%) recorded gains.

The Banking and Oil & Gas indices also trended northwards, up 0.8% and 0.2% respectively, due to price appreciation in ZENITH (+1.8%), UBA (+1.6%), SEPLAT (+0.4%) and FORTE (+0.2%). In related news, SEPLAT released its FY: 2017 result today which was largely impressive.

Gross revenue spiked 118.2% to N138.3bn, which was unsurprising given the relative peace in the Niger Delta region in 2017 which translated to higher production volumes for the Company.

Accordingly, the company recorded N81.1bn in Profit After Tax (PAT) from a loss of N45.4bn in FY: 2016Lastly, bargain hunting in NEM (+5.0%) and CONTINSURE (+1.9%) uplifted the Insurance index (+0.1%).

Market Breadth Turns Positive 
Market breadth (advance/decline ratio) which measures investor sentiment strengthened today, improving to 1.4x from 0.5x recorded the previous day as 31 stocks advanced while 23 stocks declined.

The best performing stocks today were CCNN (+8.5%), JAPAUL OIL (+8.0%) and NEM (+5.0%) while COURTVILLE (-6.9%), AFRINSURE (-5.0%) and REDSTAREX (-4.8%) declined the most. Current trading pattern is reflective of the fact that investors are increasingly taking position in fundamentally sound dividend paying stocks as earnings begin to trickle in, hence we expect market performance to remain largely positive in the short term.
In the NASD OTC Exchange, total volume and value traded stood at 45.5m units and N35.1m respectively. SDCSCSPLC (+0.9%) was the only instrument that gained yesterday.

Royal Exchange to Celebrate 100th Anniversary, Restructure to Lead Market

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Royal Exchange General, at a press briefing in Lagos

L-R: Mr. Wale Banmore,  MD, Royal Exchange Prudential Life; Alhaji Auwalu Muktari, Group MD/CEO,  Royal Exchange Plc and Mr.  Benjamin Agili, MD, Royal Exchange General, at a press briefing in Lagos yesterday.

Royal Exchange Plc, Nigeria’s foremost insurance and financial services group has announced plans to undertake a corporate restructuring exercise of its key operations, to enable the group and its various subsidiaries more become nimble, efficient and able to respond to the ever-changing demands and needs of its clientele across the country.

This restructuring exercise which has already begun was announced by the Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari, in a parley with insurance journalists, where the company also unveiled plans to celebrate its Centenary and remain relevant in the Nigerian Insurance market for the next 100 years.

According to Alhaji Auwalu, “Royal Exchange Plc has been operating in Nigeria since 1918 and this year marks our 100 years of offering best-of-bred insurance services to our various clients across the country and beyond and also meeting the expectations of our stakeholders. As we embark on the next 100 years, it is important that we reassess the fortunes of the company, and devise plans and strategies for the next century in order to remain relevant now and in the years to come, while satisfactorily meeting the expectation of all stakeholders.”

Speaking further, the GMD said: “Our restructuring process rests on three main pillars, namely Digital Transformation; Efficient Distribution Channels and Business Process Remodeling”. On digital transformation, Muktari said, “We at Royal Exchange seek to build and develop digital tools as an enabler to reach our clients and conduct more efficient back-office operations. This will entail our deployment of digital solutions that will ease our business operations and also the use of various social media tools to reach our current and potential clientele today and tomorrow. By developing and deploying various business applications, we believe that we will become more nimble and able to respond quickly to change, whenever it comes.”

The Royal Exchange boss further added that one of the goals of the restructuring project is the Group’s desire to develop and implement an efficient and cost-effective distribution channel that will support the company’s earlier objective of being nimble and give the group leverage in delivering products and services faster and better and more reliable to its teeming clients in Nigeria.

Alhaji Auwalu Muktari said: “As a group holding company with five subsidiaries across the insurance and financial services landscape, it has become of vital importance that we seek to improve our efficiency across the group by leveraging on cost discipline, astute capital allocation and investments and deployment of operational know-how to make Royal Exchange Plc a leaner, faster, smarter organization, equally adept at meeting the ever-changing needs of the consumer, wherever they are, offering them products and services they want, when they want it and how they want it.”

“For the future that we behold, our goal is to continuously redefine, reinvent and differentiate ourselves in the marketplace. The focus of the Management of the Group is to achieve sustainable growth for the company through deepening our revenue base, improving service delivery and its support systems and at the same time, keeping costs in check,” he stated.

Speaking further, Alhaji Auwalu Muktari said that one of the new growth areas for the company is our foray into the agriculture insurance, adding that this will definitely be one of the core areas of emphasis going forward.

In recognition of the efforts being undertaken to reposition the company, the Group Managing Director was recently awarded the 2017 Most Outstanding Chief Executive Officer, Insurance, by Independent Newspapers just as he was also adjudged the 2016 Insurance Man of the Year by BusinessToday while the Company was bagged BusinessToday 2016 Insurance Company of the Year.

As a socially responsible organization, Royal Exchange Plc has in the past donated to worthy causes, such as providing educational equipment to schools in Lagos and Kano, providing health insurance to staff and pupils of the Pacelli School of the Blind and has supported the development of future leaders by sponsoring the Annual School Leadership Seminar for Secondary School Prefects in Lagos State.

These CSR initiatives have also resulted in recognition by InspenOnline Media and BusinessToday Media as CSR Insurance Company of the Year 2015.

 

About Royal Exchange Plc

Royal Exchange Plc started operations in 1921 and continues to be driven by innovation and a determination to offer services that are of exceptional value to its customers. Following the recapitalization exercise in 2007, the company was reorganised into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries namely:

  • Royal Exchange General Insurance Company Limited (Non-Life Insurance Services)
  • Royal Exchange Prudential Life Plc (Life Assurance Services)
  • Royal Exchange Finance and Asset Management Limited (Financial Advisory Services)
  • Royal Exchange Healthcare Limited (HMO and Health Insurance)
  • Royal Exchange Microfinance Bank Limited (Banking Services)
  • Royal Exchange Takaful Insurance Company (Awaiting final approval from National Insurance Commission)

Nigeria: 2018 GDP Forecast Climbs to 2.6%

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The National Bureau of Statistics (NBS) released Q4:2017 Gross Domestic Product (GDP) data yesterday and in line with consensus expectation of a positive growth, output grew 1.92% Y-o-Y, marking the third consecutive expansion in growth since the economy exited recession in Q2:2017.

The successive positive GDP growth recorded from Q2 – Q4:2017 offset the 0.9% Y-o-Y contraction in Q1:2017, resulting in FY: 2017 actual growth to 0.83% Y-o-Y, 13bps ahead of our initial projection of 0.7%. Though Q4:2017 actual growth (+1.9% Y-o-Y) was ahead of our estimate (+1.5% Y-o-Y), it lagged consensus estimate polled by Bloomberg at 2.1%.

Despite the negative data surprise, we think there is a major positive to draw from the data: unlike the oil sector driven rebound in activity between Q2 – Q3:2017, growth was more broad-based in Q4 as the three major economic sectors – Industry, Services and Agriculture – expanded concurrently for the first time since Q4:2014.
Whilst Oil sector growth disappointed at 8.4% Y-o-Y (relative to Afrinvest forecast of 13.6% Y-o-Y) from 25.9% Y-o-Y growth in Q3 due to normalizing base and a 5.9% Q-o-Q decline in oil production to 1.91mb/d, the Industrial sector grew for the first time in eight quarters (+3.9% Y-o-Y) –  driven by a rebound in Manufacturing sector which expanded 0.1% Y-o-Y in the Quarter.

More importantly, the recovery in the Manufacturing sector was broad-based as 12 of the 14 sub-sectors rose with Oil Refining (-46.2% Y-o-Y) and Cement (-1.9% Y-o-Y) sectors being the major drags.

Similarly, Nigeria’s Services sector exited a 5-Quarter long recession as it posted a marginal growth of 0.1%, supported by rebound in Trade (2.1% Y-o-Y) and Financial Institutions (+2.6% Y-o-Y) which offset continued weakness in ICT (-1.5% Y-o-Y) and Real Estate (-5.9% Y-o-Y) sectors.
The recovery in the Manufacturing and Services sector was in line with optimism expressed by business managers in the CBN’s Purchasing Managers’ Survey (PMI) as both Manufacturing and Non-Manufacturing indices closed at record highs in Dec-2017.

Whilst the belated rebound in FX sensitive Trade and Manufacturing sectors – despite structural constraint of Port Congestion – was a major positive, the sustained contraction in ICT sector reflects a steep 6.1% Y-o-Y contraction in active voice subscribers from 154.5m in FY:2016 to 145.1m in FY:2017. This may however start to abate as both voice and data subscribers improved 3.7% and 5.3% Q-o-Q in Q4:2017 according to data released by the NBS last week.
The Agricultural sector outperformed Industry and Services as it rose 4.2% Y-o-Y from 3.1% in Q4:2016, the fastest pace of growth since Q3:2016, driven by stronger output posted in Crop Production sector (4.6% vs. 3.2% Y-o-Y in Q3:2017).

The impressive performance of Crop production corroborates reports of above-average harvest in most areas in the main harvest season which lasted between September and December due to favourable rainfall and impact of targeted financial interventions in the sector by the CBN and Federal Government.

Near Term Outlook Positive…We Raise FY: 2018 Estimate to 2.6%
Afrinvest says its outlook for the economy remains positive as we expect Oil sector low-base-push to last till Q4:2018 – particularly given that oil production disappointed in Q4:2017 and new barrels are expected from Total’s Egina field by Q4:2018.

Thus, we have raised Oil sector GDP growth projection from 8.8% to 11.8% Y-o-Y. Whilst structural constraints to non-oil sector growth – recurring energy scarcity, weak infrastructure and port congestion – remain headwinds, we note that the cyclical challenges will start to abate from 2018 against the backdrop of:

  • Anticipated expansion in fiscal spending as fiscal balance stabilizes and political parties spend ahead of the election;
  • Further deceleration of inflation rate which will directly affect GDP price deflator and support real growth;
  • Increase in private investments due to favourable aggregate demand outlook and stable FX rate; and

Low-base effect of ICT sector which contracted in FY: 2017 due to a 6.1% Y-o-Y decline in Active Voice subscribers.

Thus, we have increased Non-Oil growth estimate to 1.8% and consequently raised Aggregate GDP growth projection to 2.6% from 2.1%.
The positive data reported is a broad base reflection of the improvements that the economy has garnered after the recession suffered up until Q1:2017. Although the equities market may not directly react to the GDP data announcement, the improving macroeconomic conditions, especially in consumption and investments, are anticipated to impact on forward earnings growth.

In the fixed income market, yields are projected to continue reacting to inflation expectations and the FGN debt strategy to source for cheaper external debt in order to reduce near term servicing cost.

NYSC, GE Unveil Partnership to Empower Corp Members with Entrepreneurial Skills

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nysc

GE, the world’s premier Digital Industrial Company has announced a partnership with the National Youth Service Corps (NYSC) to empower Youth Corps members with valuable entrepreneurial skills in line with its commitment to skills development in Nigeria.

Known as the Start & Improve Your Business (SIYB) training programme, the initiative which is based on the curriculum of the International Labour Organisation (ILO), will see thousands of youth corps members receive critical entrepreneurial training.

The overall goal is to improve on and increase the capacity of the youth in building Micro, Small and Medium Enterprises (MSMEs) that can operate effectively and be sustainable long-term. It has been recognised that even at the best of times, employers of labor in the economy will not have the capacity to absorb all the entrants.

This has led to a need to promote the development of small and medium scale enterprises, to create self- employment opportunities and expand the scope for job creation, as research findings indicate clearly that 60-70% of new jobs are created by the SME sector.

Speaking when he led a team on a courtesy visit to the Director General of the NYSC in Abuja on Monday, Managing Director of GE Gas Power Systems in Nigeria, Mohammed Mijindadi, explained that the initiative was one of the many ways GE is supporting skills development in Nigeria.

“We are committed to the sustainable development of Africa and Nigeria in particular, and as such we invest in skills development initiatives that empower people with valuable skills, equip communities with new tools and technology and elevate ideas that are helping to solve Africa’s challenges,” Mijindadi said.
Giving more insights, he explained that the program works using a Train the Trainer approach where NYSC personnel and facilitators are trained utilising an international curriculum benchmarked to global standards. Following that, the facilitators are supported to execute training programs for all youth corps members across the country.

The initiative, Mijindadi added, “is a practical business management-training programme with a focus on starting and improving small businesses.”
The SIYB program initiative is part of GE’s commitment to skills development in Nigeria in support of the Federal Government’s job creation objectives. The government plans to create 15 million jobs by 2020 as indicated in its 2017 Economic and Recovery Growth Plan (ERGP) and for Nigerian youth to embrace this opportunity they need to have the right skills.
Speaking on the partnership, Roti Balogun, Chief Talent and Skills Development Leader for GE Africa and Corporate Champion for the Nigerian Economic Summit Group Human Capital Development commission added

“We are pleased to lead a private sector response to some of our commitments from the recently concluded NES23 summit on skills, competencies and capacity building with a focused strategy on faculty development in Nigeria. We remain committed to entrepreneurial leadership development across the continent with programs such as the SIYB.”
Responding, Brigadier-General Kazaure commended the partnership with GE stating that the SIYB program is aligned and complimentary to the NYSC’s efforts in setting up skill acquisition centers in the country’s six geo-political zones.

He expressed interest in continuing to partner with GE to build capacity and encouraged other private sector players to look for similar ways to support the agency.
GE has created several skills development initiatives in Nigeria, a prime example being the Lagos Garage- a hub for advanced manufacturing-based innovation, strategy development, idea generation and collaboration.

Co-located with the GE Lagos offices in Victoria Island, the Lagos Garage offers a year-round series of skills training programs focused on building the next generation of Nigerian entrepreneurs. Till date, 140 entrepreneurs have graduated the program having been trained to use the latest in advanced manufacturing technologies; 3D printers, CNC mills, and laser cutters as well as in business development.

Dangote Grants 115 Scholarships to Students in 15 Host Communities

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In a major boost to its Corporate Social Responsibility profile, Dangote Cement Plc, Ibese Plant has announced a multi-million Naira educational scholarship award for 115 students from its 15 host communities for the 2017/2018 academic session.
The Company said the scholarship has become an annual event meant to contribute to the educational development of the people and the area and position them in right place in the scheme of things in Ogun state and Nigeria in general.
Acting Plant Director of Dangote Cement, Ibese, Mr. Louis Raj, while speaking during the presentation of cheques to the beneficiaries at Ibese Plant explained that the management decided to increase the number of beneficiaries to 115 from the previous 80 so that more children of the area could benefit.
He also said the decision was meant to encourage the young ones to go to school as a sure way of building them mentally and morally so that they be good to themselves and the society.
According to him, the scholarship award is just one of the many Social Services the Company has committed itself to and continue to provide other social services as a way of giving back to the society within which it operates.
Mr. Raj stated that the scholarship award and other CSR projects were being undertaken as a way of saying thanks to the people for maintenance and sustenance of peace in the area pointing out that it was the prevailing atmosphere of peace that make the company to operate smoothly.
He expressed the management gratitude to the royal fathers and other community leaders whose efforts have accounted for the peace and tranquility, noting that the company would wish the spirit of peaceful coexistence continues.
The General Manager, Government and Community Relations, Joseph Alabi while giving the breakdown of the scholarship said the award covered 115 students of Yewa origin studying various courses across several higher institutions of learning in the country.
Some of the schools where the beneficiaries are studying include Polytechnics, Universities, College of Educations, College of Technologies, and secondary schools scattered across Ogun state.
Alabi also announced a list of candidates from the host communities who have been selected to attend Dangote Academy for training in various arts and vocations pointing out that the training will equip them with wherewithal to work and do their own business whenever they chose to.
“In Dangote Group, Corporate Social Responsibility (CSR) to our communities is our watchword and focus. Giving scholarships, construction of roads and drainages, provision of transformers and other projects to connect communities to national grid, among others are what will do every year. We award scholarships to communities in order to give the communities part of wealth being created.”
“I think everything is not about money but the main benefit is to provide them the opportunity to have better education and in the future, if they are good students, well-qualified, we will also offer them opportunities to work here at Ibese Cement Plant. This is part of CSR to ensure good relations, good partnership with our communities,” he added.
In his remark, the Olu of Imasayi, Oba Gbadebo Oni said the host communities are happy with Dangote Cement with its handling of community issues, saying Alhaji Aliko Dangote deserves all the cooperation his people could muster for citing the cement plant in their land and then taking care of the people and the communities.
He promised that his people would continue to give peace a chance always because to whom much is given, much is expected. The Monarch said the education scholarship is the best thing that has happened to the host communities because the issue of quality education cannot be quantified in monetary terms.
The scholarship according to him, has offered a big relief to parents who have to struggle so much to ensure their children school fees are paid, saying they will forever be grateful to the management of Dangote cement.
It would be recalled that the company had some years ago instituted scholarships for the indigenes of any of the host communities in any higher institution and secondary schools with the management saying it was poised to making life more meaningful to all members of the host communities with a promise to ensure that all projects meet the specific need of each community.
Also, the Dangote Cement Plc, Gboko factory in Benue State had also given out N20 million worth of scholarships to indigent students from the firm’s host community, Mbayion, as part of its CSR in the last one year.
The Group also emerged Nigeria’s best Corporate Social Responsibility (CSR) Company according to a survey by Governance Advancement Initiative for Nigeria (GAIN), an NGO.
Dangote was the adjudged overall winner among 25 Nigerian and multinational companies operating in the country in 2016, scoring 6.3 per cent, followed by Nestle with 5.51 per cent and Etisalat with 5.45 per cent.

Orange, Apigate Launch Digital Application Programming Interface (API) in Africa

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Orange, one of the world’s leading telecommunications operators, and Apigate, a subsidiary of Axiata Digital, announced a new partnership to strengthen their respective API hubs as part of their mutual ambition to advance global digital transformation.

Apigate and Orange’s new hub, Bizao will draw on their respective geographical strengths across Asia, the Middle East, and Africa, to deliver a suite of APIs to businesses, providing a streamlined and efficient method of accessing customers via a single entry point across regions.

APIs provide the impetus for digital revolution and innovation, enabling the delivery of new services such as mobile payment, communication, and identity. Through the partnership being discussed, APIs can be delivered to international and local companies alike, resulting in consolidation of traffic and expansion of reach.

The partnership will see Apigate delivering a Digital Enablement Hub to soon-to-be launched Bizao, as well as a hub-to-hub connection of the two operators’ API platforms to facilitate a single technical, commercial, and financial integration.

This will enable faster deployment for businesses to distribute and monetise their services. The integrated platform will address multiple operators across each of the operator’s respective footprints in Asia, the Middle East, and Africa.

“This exciting partnership is emblematic of our vision for digital transformation for the region and how we wish to be partners to businesses from the smallest start-ups to the largest organisations to help them grasp the opportunities that the digital age affords,” said Thomas Chalumeau, Chief Strategy Officer, Middle East and Africa at Orange.
Chief Executive of Axiata Digital, Mohd Khairil Abdullah says “This partnership marks an important milestone for the API businesses, where two major telecom operator groups are collaborating to expand their reach across each other’s footprint.”

1bn Passengers to Fly on Sustainable Aviation Fuel Flights by 2025

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The International Air transport Association (IATA) set out an aim  for one billion passengers to fly on flights powered by a mix of jet fuel and sustainable aviation fuel (SAF) by 2025. This aspiration was identified on the tenth anniversary of the first flight to blend sustainable aviation fuel and ordinary jet fuel.

On 24 February 2008, a Virgin Atlantic Boeing 747 flew from London to Amsterdam with sustainable aviation fuel in one of its engines.

The flight demonstrated the viability of drop-in biofuels, which can be blended with traditional jet fuel, using existing airport infrastructure. A flight completely powered by sustainable fuel has the potential to reduce the carbon emissions of that flight by up to 80%.

“The momentum for sustainable aviation fuels is now unstoppable. From one flight in 2008, we passed the threshold of 100,000 flights in 2017, and we expect to hit one million flights during 2020. But that is still just a drop in the ocean compared to what we want to achieve. We want 1 billion passengers to have flown on a SAF-blend flight by 2025. That won’t be easy to achieve. We need governments to set a framework to incentivize production of SAF and ensure it is as attractive to produce as automotive biofuels,” said Alexandre de Juniac, IATA’s Director General and CEO.

The push to increase uptake of SAF is being driven by the airline industry’s commitment to achieve carbon-neutral growth from 2020 and to cut net carbon emissions by 50% compared to 2005. A number of airlines, including Cathay Pacific, FedEx Express, JetBlue, Lufthansa, Qantas, and United, have made significant investments by forward-purchasing 1.5 billion gallons of SAF.

Airports in Oslo, Stockholm, Brisbane and Los Angeles are already mixing SAF with the general fuel supply. On the present uptake trajectory it is anticipated that half a billion passengers will have flown on a SAF-blend powered flight by 2025.

But if governments, through effective policy, help the sustainable fuel industry to scale-up its production, it is possible that one billion passengers could experience an SAF flight by 2025. The steps needed to deliver this include:

Allowing SAF to compete with automotive biofuels through equivalent or magnified incentives

Loan guarantees and capital grants for production facilities

Supporting SAF demonstration plants and supply chain research and development

Harmonized transport and energy policies, coordinated with the involvement of agriculture and military departments.

Acknowledging that some sources of biofuels for land transport have been criticized for their environmental credentials, de Juniac emphasised strongly the determination of the industry to only use truly sustainable sources for its alternative fuels.

“The airline industry is clear, united and adamant that we will never use a sustainable fuel that upsets the ecological balance of the planet or depletes its natural resources,” he said.

Ford Drivers to Get Traffic App, Waze, from April 2018

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Ford yesterday announced, at Mobile World Congress, in Barcelona, that the popular navigation and traffic app Waze will be available to Ford owners globally from April 2018.

With more than 100 million active users, Waze is the world’s largest community-based navigation app, helping drivers to outsmart traffic together. First announced at CES, the collaboration means that Apple iPhone owners will be able to project Waze from their smartphone to the big screen in their car. Ford already offers mobile navigation app Sygic on the AppLink platform, and the SYNC 3 Navigation System with FordPass Live Traffic.

“We know that people enjoy a range of navigation apps to help them reach their destination safely and more efficiently and have worked closely with partners to make this happen,” said Don Butler, executive director, Connected Vehicle and Services.

“With the SYNC 3 AppLink platform, drivers can access their favourite apps safely and seamlessly while keeping their eyes on the road and their hands on the wheel.”

Ford SYNC AppLink enables drivers to use supported smartphone apps on their vehicle’s integrated touchscreen; with advanced voice and steering wheel controls. AppLink is powered by SmartDeviceLink (SDL) an open source software solution promoted by a number of auto makers. SDL provides a common interface between apps and vehicles.

“Waze works as a personal heads-up from 100 million of your friends on the road – and now that will include the many Ford drivers who will be able to safely access our app while on the move through the car display,” said Jens Baron, product lead, In-Car Applications, Waze.

“Waze is more than just red lines on the map – it reflects a huge community of drivers on the go, outsmarting traffic together all around the world.”

Ford, also in Barcelona, announced that the mobile app from audio-on-demand podcast app Acast would be made available to drivers.

This offers offline downloads and an intelligent recommendation engine analyses commute times to suggest podcasts which best fit journey length. Acast was one of the winners of Ford’s 2017 “Make it Driveable” Paris AppLink Challenge, a start-up focused event to help companies develop ideas that make journeys better.

Ford also confirmed that the following apps will be coming soon to AppLink:

BPme – find BP petrol stations and pay for fuel from the comfort of your car

Radioplayer – from next month, discover and stream favourite radio shows, podcasts

Cisco WebEx – safely join and participate in meetings on the go with voice commands **

Leadway Assurance, NAIPCO to Hold 2nd Edition of Journalism Training

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Leadway

Leadway Assurance Company Limited has announced the second edition of the Leadway Journalism training organised in partnership with the National Insurance and Pension Correspondents.

The initiative which is in its second edition is a capacity building initiative organised by Leadway Assurance to empower journalists in the discharge of their duty by equipping them with the requisite knowledge they require.

According to the announcement made by the company’s Head of Corporate Communications/Services, Olubunmi Adeleye, this edition of the capacity development initiative will focus on the key areas of financial reporting in insurance, understanding life annuity, micro insurance business among others.

Speaking on the initiative, Adeleye highlighted the important role that journalists play in raising the level of insurance awareness and how it works, hence, the need to continuously equip them within such capacity building initiatives.

She said: “The training will further enlighten journalists on the inner workings and technicalities of the insurance sector, keeping them abreast of the latest industry trends both locally and globally.”

The initiative which is scheduled to hold at the Leadway Assurance Training School on Wednesday, 28 February, 2018 will have in attendance over 40 journalists culled from the Insurance and Pensions news sector.

It will be recalled that in October 2017, Leadway Assurance collaborated with NAIPCO to organise the first of its kind comprehensive training workshop for members as part of the 2017 NAIPCO Conference to facilitate capacity building for insurance correspondents.

5 Reasons You Should Look Out for FirstBank At Social Media Week 2018

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First Bank of Nigeria Limited has announced its sponsorship of the 2018 Social Media Week (SMW), Lagos, scheduled to take place from February 26 through to March 2, 2018 at the Landmark event centre, Victoria Island, Lagos and WE ARE HERE FOR IT!!!

Here are 5 Reasons why you should be on the look of out for them this year.

1) They will be activating a Digital Lounge at the event where you can experience first-hand some of the newest technologies in the digital space such as the Amazon Echo, Google Glasses, Drone Technology, Virtual Reality Games and so much more,

2) They will be inviting trendy ‘digital geeks’ who will work you through the step by step process of how to activate any of their digital products. Learn first-hand how to enjoy quick banking with *894#. Attendees will also have the opportunity to participate in the FirstBank ‘Expressions on cards’ campaign and can pick up their customized cards at the event.

3)  They will be giving away loads and loads of FREEBIES including the iPhone X, cash prizes, airtime and one-month free DSTV subscription via FirstMobile!

4) They will be hosting some ‘techpreneurs’ who will be sharing with you some of their exciting innovative products and services. Don’t miss out on this opportunity!

5) And Finally, the icing on the cake is the panel they are organizing on Monday February 26th. The panel moderator is the youthful, trendy and financially savvy Founder of Nairametrics- Ugo Dre. The panelists include: Team Lead Product Design at FirstBank Digital Lab – MunachimsoDuru; CEO, Cowrywise –  Razaq Ahmed; and CEO, Fint.ng -Chiwete John-Njokanma. They will be discussing exciting ways that both the formal and informal sectors can bank the ‘unbanked’.

Truth is that #FirstBankisDigital. It is determined to power both business and pleasure at this year’s social media week activation the digital way.

They are committed to leveraging the opportunity social media provides to deploy cutting-edge technology, deliver seamless banking services and a delightful customer experience

We will be looking out for them and we encourage you to register to attend: www.firstbanknigeria.com/sponsorship/socialmediaweek/#register

AfDB Urges US to Support Agriculture in Africa

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The President of the African Development Bank, Dr. Akinwumi Adesina has made a strong case for increased American and global investments to help unlock Africa’s agriculture potential.
He made the remarks as the Distinguished Guest Speaker, at the USDA’s 94th Agriculture Outlook Forum in Virginia on Thursday, on the theme The Roots of Prosperity.

According to Adesina, “For too long, Agriculture has been associated with what I call the three Ps – pain, penury, and poverty. The fact though is that agriculture is a huge wealth-creating sector that is primed to unleash new economic opportunities that will lift hundreds of millions of people out of poverty.”

Participants at the Forum included the Secretary of Agriculture, Sonny Perdue; Deputy Secretary of Agriculture, Stephen Censky; President of the World Food Prize Foundation, Kenneth Quinn; Chief Economist of the U.S. Department of Agriculture (USDA), Robert Johansson; Deputy Chief Economist, Warren Preston; and several top level government officials and private sector operators.

Adesina appealed to the US private sector to fundamentally change the way it views African agriculture.
“Think about it, the size of the food and agriculture market in Africa will rise to US $ 1 trillion by 2030. This is the time for US agri-businesses to invest in Africa,” he said. ‘’And for good reason: Think of a continent where McKinsey projects household consumption is expected to reach nearly $2.1 trillion and business-to-business expenditure will reach $3.5 trillion by 2025. Think of a continent brimming with 840 million youth, the youngest population in the world, by 2050.”

The U.S. government was urged to be at the forefront of efforts to encourage fertilizer and seed companies, manufacturers of tractors and equipment, irrigation and ICT farm analytics to ramp up their investments on the continent.

“As the nation that first inspired me and then welcomed me with open arms, permit me to say that I am here to seek a partnership with America: a genuine partnership to help transform agriculture in Africa, and by so doing unlock the full potential of agriculture in Africa, unleash the creation of wealth that will lift millions out of poverty in Africa, while creating wealth and jobs back home right here in America,” the 2017 World Food Prize Laureate told the Forum.”

Adesina told more than 2,000 delegates that the African Development Bank is spearheading a number of transformative business and agricultural initiatives.

“We are launching the Africa Investment Forum, as a 100% transactional platform, to leverage global pension funds and other institutional investors to invest in Africa in Johannesburg, South Africa from November 7-9.”

The World Bank, International Finance Corporation, the Inter-American Development Bank, the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank and the Islamic Development Bank, are partnering with the African Investment Forum to de-risk private sector investments.

The African Development Bank is also pioneering the establishment of Staple Crop Processing Zones in 10 African countries that are expected to transform rural economies into zones of economic prosperity and save African economies billions of dollars in much needed foreign reserves.

“We must now turn the rural areas from zones of economic misery to zones of economic prosperity. This requires a total transformation of the agriculture sector. At the core of this must be rapid agricultural industrialization. We must not just focus on primary production but on the development of agricultural value chains,” Adesina added. “That way, Africa will turn from being at the bottom to the top of global value chains.”

In his keynote address U.S. Secretary of Agriculture, Sonny Perdue, said:
“The U.S. Administration has removed more restrictive regulations to agriculture than any other administration. Our goal is to dismantle restrictions that have eroded agricultural business opportunities.”

“Agriculture feeds prosperity and accounts for 20 cents of every dollar. As global prosperity grows, it in turn fuels the demand for more nutritious food and business opportunities,” he added.

In his concluding remarks, Adesina informed participants about a new $ 1 billion initiative, Technologies for African Agricultural Transformation (TAAT) to unlock Africa’s huge potential in the savannahs.

Expressing strong optimism that the future millionaires and billionaires of Africa will come from agriculture, Adesina said:
“Together, let our roots of prosperity grow downwards and bear fruit upwards. As we do, rural Africa and rural America will brim with new life, much like I witnessed in Indiana, during my time as a graduate student in America. Then, we will have changed the 3 ‘Ps’ to – Prosperity, Prosperity and Prosperity!”

Equities Market Sustains Positive Performance… NSE ASI Up 24bps

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Performance of the domestic bourse remained on the uptrend yesterday as the All Share Index (ASI) increased 0.2% to settle 42,258.78 points while YTD return improved to 10.5%. Consequently, investors gained N36.1bn in value as market capitalisation rose to N15.2tn.

Sustained buying interest in financials, especially in UBA (+3.2%), FBNH (+3.1%) and ZENITH (+3.1%), was the main driver of the positive performance. However, activity level softened as volume and value traded dipped 40.0% and 41.9% to 342.1m units and N3.1bn respectively.

Largely Positive Performance across Sectors 
Performance across sectors was largely positive as all indices, save for the Consumer Goods index which shed 0.3% largely on the back of losses in NIGERIAN BREWERIES (-1.3%) and DANGSUGAR (-2.7%), trended northwards.

The Banking and Oil & Gas indices appreciated 0.7% apiece due to a rally in ZENITH (+3.1%), UBA (+3.2%) and TOTAL (+4.8%). In the same vein, bargain hunting in WAPIC (+4.9%) and AIICO (+4.3%) pushed the Insurance index 0.3% higher. Likewise, the Industrial Goods index added 0.2% as WAPCO (+0.5%) closed in the green.

Investor Sentiment Turns Positive 
Market breadth (advance/decline ratio) which measures investor sentiment turned positive today, improving to 1.4x from 0.7x recorded yesterday as 24 stocks closed in the green while 17 stocks declined. JAPAULOIL (+5.4), WAPIC (+4.9%) and TOTAL (+4.8%) emerged top gainers of the day while UNIC (-6.7%) COURTVILLE (-5.6%) and AGLEVENTIS (-5.0%) were the worst performers.

We expect the market to sustain a positive close to the week as investors seek for bargain opportunities in the market ahead of full year earnings releases.

Kenya’s mSurvey Mobile Solution to Launch in Nigeria

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mSurvey, the mobile-first consumer experience platform, is expanding into Nigeria. The move comes as the Kenya-based company seeks to consolidate its position as Africa’s leading technology-powered customer loyalty platform.

Backed by international and African investors, including Safaricom’s Spark Fund, Cross Culture Ventures and Alpha Angels, mSurvey will be opening a new office and growing a Lagos-based team, who will focus on building partnerships with Nigerian MNOs and Banks, before rolling out their services namely, Voice of the Customer, Consumer Wallet and Net Promoter Score to Nigeria.

Launched in 2012, with the mission to simplify access to high-quality data from hard-to-reach communities, mSurvey has brought hidden and offline voices into the global conversation, via in-depth, mobile phone conversations. The company has worked with brands such as Safaricom, Java House Africa, KCB (Kenya Commercial Bank), Britam Insurance, Digicel (Trinidad and Tobago)]. Headquartered in Nairobi, Kenya, with a presence in the U.S., the move into the Nigerian market signals the company’s focus on connecting brands and business-ready companies to their customers, to quantify consumer spending habits, to understand customers’ relationships with brands, and to build a detailed and segmented map of the African consumer. To-date, mSurvey has made a little over 13 million engagements in mobile conversations since its inception.

Dr. Kenfield Griffith PhD, mSurvey CEO and co-Founder says, “We’re excited to be expanding into the Nigerian market, and capturing the daily consumer experiences of Africa’s most populous country. In Kenya, we’ve seen many of our partner companies see an increase in sales, having used one of our products to better understand their customers. The question we are asking, and subsequently working with our clients to answer, is: how can you attract and retain your valued customers, if you don’t know how they feel about your product or service?

“Nigeria is a tantalizing market for us to expand into; we know that Nigerians like to voice their opinions and give honest feedback – but all too often, companies and brands aren’t able to capture this feedback in a meaningful or indeed tangible way, so they are unable to reconfigure their business practices to fit with their customers’ requirements. This is where mSurvey can help – by enabling our customers to ask the right questions and speak directly to consumers, we can ensure that our clients can listen to and get really get to know their customers. In an ever competitive market, knowing how to retain your customers is critical to any company’s growth”.

 

mSurvey’s platform enables a two-way conversation on any topic, with any local audience, opening a dynamic, interactive and unfiltered communication channel that delivers insights from real people, in real time. To-date, mSurvey has worked with some of the world’s most recognisable businesses, government organisations and academic institutions. Through in-depth consumer conversations, data analytics and previously unobtainable metrics, the company is changing how businesses create interactive and individual relationships with their customers by providing unprecedented access to real-time, direct feedback. In less than five minutes, any business, organization or individual can start a conversation with select people or random, diverse populations via mSurvey’s feedback platform – no printed questionnaire, local administrator or long response time needed

 

mSurvey’s official launch in Nigeria will coincide with the second Customer Loyalty NPS Masterclass, which will be held in Lagos on March 20th and 21st, 2018. Masterclass attendees will learn how to apply the Net Promoter Score (NPS) to measure and boost customer loyalty for their business, which will be hosted by Richard Owen, CEO of Owen CX Group, co-creator of the NPS metric and published author on NPS methodology.

African Airlines Record O% Fatal Accident in 2017

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The International Air Transport Association (IATA) released data for the 2017 safety performance of the commercial airline industry showing continued strong improvements in safety.

The all accident rate (measured in accidents per 1 million flights) was 1.08, an improvement over the all accident rate of 1.68 in 2016 and the rate of 2.01 for the previous 5-year period (2012-2016).

The 2017 rate for major jet accidents (measured in jet hull losses per 1 million flights) was 0.11, which was the equivalent of one major accident for every 8.7 million flights. This was an improvement over the rate of 0.39 achieved in 2016 and also better than the five-year rate (2012-2016) of 0.33.

There were 6 fatal accidents with 19 fatalities among passengers and crew. This compares with an average of 10.8 fatal accidents and approximately 315 fatalities per year in the previous five-year period (2012-2016). In 2016 there were 9 fatal accidents and 202 fatalities.

None of the 6 fatal accidents involved a passenger jet. Five involved turboprop aircraft and one involved a cargo jet. The crash of the cargo jet also resulted in the deaths of 35 persons on the ground, as well as the crew of the jet.

IATA member airlines experienced zero fatal accidents or hull losses in 2017 with jet or turboprop equipment.

“2017 was a very good year for aviation safety. Some 4.1 billion travelers flew safely on 41.8 million flights. We saw improvements in nearly all key metrics—globally and in most regions. And our determination to make this very safe industry even safer continues. In 2017 there were incidents and accidents that we will learn from through the investigation process, just as we will learn from the recent tragedies in Russia and Iran. Complementing that knowledge are insights we can gain from the millions of flights that operate safety. Data from these operations is powering the development of predictive analytics that will eventually enable us to eliminate the conditions that can lead to accidents. The industry knows that every fatality is a tragedy. Our common goal is for every flight to take-off and land safely,” said Alexandre de Juniac, IATA’s Director General and CEO.

2017 Safety Performance:

         2017 2016 5-year average (2012-2016)
On-board Fatalities ¡ 19 202 314.6
Total Accidents 45 67 74.8
Fatal Accidents 6 9 ¡¡ 10.8
Fatality Risk ¡¡¡ 0.09 0.21 0.24
Fatal Accidents Passenger Flights 2 3 5.6
Fatal Accidents Cargo Flights 4 6 4.6
% of accidents involving fatalities 13.3 13.4 14.4
Jet hull losses 4 13 10
Jet hull losses with fatalities 1 4 3.4
Turboprop hull losses 9 7 15
Turboprop hull losses with fatalities 5 4 7.2

 

Progress in Africa

Sub-Saharan Africa continued to make strong progress on safety. Airlines in the region had zero jet hull losses and zero fatal accidents involving jets or turboprops for a second consecutive year. Both the turboprop hull loss rate and the all accident rates declined against the average of the previous five years. However, the turboprop hull loss rate increased compared to 2016 (5.70 vs. 1.52). In turn, this largely was responsible for causing an increase in the all accident rate compared to 2016 (6.87 vs. 2.43).

“Airlines in Sub-Saharan Africa continued to improve their safety performance. The goal is to achieve world-class safety. For a second year in a row, airlines in the region experienced no passenger fatalities and no jet hull losses. But there is still a large gap to cover in the safety performance of the continent’s turboprop fleet. Global standards such as the IATA Operational Safety Audit (IOSA) are making a difference. Counting all accidents, the performance of African airlines on the IOSA registry was more than three times better than non-IOSA airlines in the region. That’s why we continue to encourage African nations to incorporate IOSA and the IATA Standard Safety Assessment (ISSA) into their safety oversight systems. ISSA, which is intended for those carriers that are not eligible for IOSA, also offers a one-term opportunity to operators of aircraft that would otherwise fall under IOSA, enabling an incremental approach to achieving IOSA,” said de Juniac.

In parallel, African governments must accelerate the implementation of ICAO’s safety-related standards and recommended practices (SARPS). As of year-end 2017, only 25 African countries had at least 60% SARPS implementation,” said de Juniac.

Six-Point Safety Strategy

IATA’s Six Point Safety Strategy is a comprehensive data-driven approach to identify organizational, operational and emerging safety issues:

  • Reducing operational risk such as LOC-I (Loss of Control In-flight), CFIT (Controlled Flight Into Terrain) and RE (Runway Excursions)
  • Enhancing quality and compliance through audit programs
  • Advocating for improved aviation infrastructure such as implementation of performance-based navigation approaches
  • Supporting consistent implementation of Safety Management Systems
  • Supporting effective recruitment and training to enhance quality and compliance through programs such as the IATA Training and Qualification Initiative
  • Identifying and addressing emerging safety issues, such as lithium batteries and integrating remotely-piloted aircraft systems (RPAS) into airspace.

CBN’s Guidelines to Banks on Dividend: Any Cause for Concern?

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Godwin Emefiele CBN Governor
Godwin Emefiele CBN Governor

On the 31st of January, 2017, the Central Bank of Nigeria (CBN) released an update on an earlier issued (8th October, 2014) Circular on Internal Capital Generation and Dividend Pay-out Ratio of Nigerian Banks.

According to Afrinvest Research, the major focus of the circular is on the capital reserves of the banks as well as the proportion of Non-Performing Loans in a bid to forestall any threats to customer deposits in the system. The circular affirm some of existing provisions while some have been updated as a proactive step by the CBN in light of current economic realities. Some of the unchanged provisions are:

1.   Every Bank shall maintain a reserve fund and shall, out of its net profits for each year, after due provision for taxation, and before any dividend is declared, where the amount of the reserve fund is:

Less than the paid-up share capital, transfer to the reserve fund a sum equal to but not less than thirty per cent of net profits; or

Equal to or in excess of the paid-up share capital, transfer to the reserve fund a sum equal to but not less than fifteen per cent of the net profit; provided that no transfer under this subsection shall be made until all identifiable losses have been made good.

2.   No bank shall pay dividend on its shares until All its preliminary expenses, organisational expenses, share selling commission, brokerage, amount of losses incurred and other capitalised expenses not represented by tangible assets have been completely written off; and adequate provisions have been made to the satisfaction of the bank for actual and contingency losses on the risk assets, liabilities, off balance sheet commitments and such unearned incomes as are derivable therefrom.

However, in line with recent developments as well as perception of potential risks on the horizon, the apex bank released further guidelines for Nigerian banks with regards to dividend payment. We present an analysis on the current state of the banks and the potential impact this can have on the banks, below;

Analysis of Impact of Revised Dividend Payment Policy on Nigerian Banks (Data as at 9M: 2017)

1.   Any Deposit Money Bank (DMB) or Discount House (DH) that does not meet the minimum capital adequacy ratio shall not be allowed to pay dividend.

All the Nigerian banks under our coverage save for UNITY and UNION meet the minimum requirement stipulated by the CBN.

For UNITY, the current CAR (as at 9M: 2017) is unavailable while UNION had a CAR of 13.3% (below CBN requirement of 15.0% in H1:2017). We envisage UNION’s CAR will improve by FY: 2017, adjusting for the capital raise of N50.0bn via rights issue in 2017.

2.   DMBs and DHs that have a Composite Risk Rating (CRR) of “High” or a Non-Performing Loan (NPL) ratio of above 10.0% shall not be allowed to pay dividend.

Only FBNH has an NPL ratio above 10.0% which should disqualify the entity from paying dividend. However, given the Holding company structure operated by FBNH, we believe dividend can be paid from earnings of subsidiaries, other than the bank.

3.   DMBs and DHs that meet the minimum capital adequacy ratio but have a CRR of “Above Average” or an NPL ratio of more than 5.0% but less than 10.0% shall have dividend payout ratio of not more than 30.0%.

Under this condition, ETI is the only Tier-1 bank restricted to a maximum payout ratio of 30.0% on the basis of the fact that its NPL ratio stood at 9.6% in 9M: 2016. Similarly, DIAMOND, FIDELITY, STANBIC, STERLING and UBN are also restricted to a maximum of 30.0% maximum payout ratio with respective NPL ratio above 5.0% but below 10.0%.

4.   DMBs and DHs that have capital adequacy ratios of at least 3% above the minimum requirement, CRR of “Low” and NPL ratio of more than 5.0% but less than 10.0%, shall save dividend pay-out ratio of not more than 75%of profit after tax.

Under this Condition, ETI is the only Tier-1 bank that is restricted to 75.0% maximum dividend payout ratio, while STANBIC is the only Tier-2 bank eligible to pay up to 75.0% as dividend payout.

5.   There shall be no regulatory restriction on dividend pay-out for DMBs and DHs that meet the minimum capital adequacy ratio, have a CRR of “low” or “moderate” and an NPL ratio of not more than 5%. However, it is expected that the Board of such institutions will recommend payouts based on effective risk assessment and economic realities.

Only 6 banks – ACCESS, FCMB, GUARANTY, UBA, WEMA and ZENITH- simultaneously meet the CBN’s minimum requirement for CAR and Non-Performing Loans. Hence, these banks are excluded from the stated restrictions on dividend payment.

6.   No DMB or DH shall be allowed to pay dividend out of reserves

Our analysis shows that none of the Nigerian banks currently breaches this provision.

7.   Banks shall submit their Board approved dividend payout policy to the CBN before the payment of dividend shall be permitted.

We believe the CBN will ensure compliance with the set guidelines before approval of dividend payment by Nigerian Banks.
In light of these new guidelines and based on our analysis of the banks using their 9M:2017 results, most of the banks, especially the Tier-1 banks  (ACCESS, GUARANTY, UBA and ZENITH) save for FBNH, are not likely to be significantly impacted and are expected to sustain the historical dividend payment trend.

ETI meets the regulatory requirement for CAR, but has NPL above recommended maximum by the CBN; hence a maximum payout ratio of 30.0% is placed on the bank.
For the banks affected by the restrictions, we opine more attention will be turned towards improving NPL and shoring up capital buffers in order to ensure dividend payment. Already, DIAMOND sold off its African operations for a consideration of US$75.7m (N27.3bn) in order to improve its CAR buffers. Similarly, Union Bank concluded a N50.0bn rights issue in order to improve its capital base.
Furthermore, given the premium Nigerian investors place on dividend paying stocks, we believe banks will strive to improve on dividend payment.

Nevertheless, we do not rule out the possibility of some kneejerk sell-off reactions by investors especially in stocks that are affected by the dividend payment restrictions.

Hence, we advise that investors trade cautiously, especially ahead of the release of full year earnings.