AMCON Urges Nigerians to Patronise Peugeot Automobiles

05/02/2018

Mr. Ben Daminabo, Head, Subsidiaries, Asset Management Corporation of Nigeria (AMCON) and representative of AMCON MD/CEO, Mr. Ahmed Kuru (left) presenting the award for the Best Dealership Network Car Sales to Mr. Abubakar Abubakar who represented Kaura Motors at the event.

As a way of sustaining the success PAN Nigeria Limited recorded in 2017, the Managing Director/Chief Executive Officer of Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru has called on PAN to maintain the tempo of the achievement in 2018; just as he implored Nigerians both individuals and corporate to patronise Peugeot brand of cars.

The AMCON boss made the remarks at the 2018 Dealers Convention organized by the automobile company in Kaduna recently. He was represented at the event by Mr. Ben Daminabo, Head of Subsidiaries at AMCOM.

According to Kuru, PAN achieved a lot of mileage in 2017 against all economic odds, which he stated required commendations from all stakeholders, which is why AMCON and indeed all stakeholders want them to sustain and even improve upon in the new financial year. It would be recalled that PAN Nigeria Limited is one of the mega institutions that received the intervention of AMCON, which prevented the automobile company from going under.

He added, “This is the best time for PAN Nigeria Limited to restrategise and move ahead like all other automobile manufactures across the globe. It is our wish that Peugeot will reclaim its pride of place in Nigeria by producing those vehicles that made the brand very popular in those days. We believe the brand has all it takes to dominate the marketplace because the new generation of Peugeot cars are fuel efficient, durable; rugged and built for Nigerian roads. Aside from these attributes, Peugeot creates thousands of jobs for our teaming population, which is why we all need to support the brand because it is our own.”

According to him, the fact that PAN is still in business is another demonstration of the positive impact and contribution of AMCON towards stabilize the Nigerian economy, which is one of its core mandates.

Earlier in his speech, Managing Director of PAN Nigeria Limited, assemblers of Peugeot brand of vehicles in Nigeria, Mr. Ibrahim Boyi had disclosed that the company made huge progress in 2017 despite the economic downturn in the country. Boyi stated that the company revenue grew by 65 per cent from N3 billion to N5.3 billion.

He added, “PAN has made giant stride in 2017 against the heavy and high tidal wave of economic recession, declining value of the naira, access to forex and erosion of infrastructure in the environment.” Stretching his position further, the PAN boss said, “PAN’s market share was 8 per cent down from 12 per cent in 2016, revenue grew by 65 per cent (to N5.3 billion from N3 billion) and operating profit by 78 per cent (to N719 million from N405 million).”

Boyi said the successes recorded in 2017 was as a result of their dealers and staff’s commitment to the brand and the efforts in delivering the Peugeot promise to their customers. He stated that it was that level of commitment that enabled PAN to recover some of its key customers such as the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS) and a host of others.

He also announced that PAN also acquired new customers such as First Bank of Nigeria (FBN), Reckitt amongst others. He also stated that PAN’s Peugeot 301 series was acclaimed Car of The Year by Nigeria Auto Journalists Awards for the second year running while the CEO of PAN was also adjudged as the CEO of the year by the same organisation.

Also speaking at the event, the General Manager, Sales and Marketing of PAN, Mr. Omagbitse Bawo added that their focus in 2018 would be customer centric.

The high point of the Dealers Convention was special recognition and reward to outstanding dealers with share of incentives from direct sales based on performances. They also recognised PAN’s marketing and sales staff for best sales performance, most valuable contribution in after sales services and innovation.

Nigerian Royal Entrepreneur Plans196 Hotels by 2026

Business Journal

05/02/2018

A Nigerian Royal has unveiled her ambitious plans for a hotel group covering 196 countries by 2026.

Queen Catherine Ajike, owner of Ugwunwa Ajike Hotels, says the group’s first eight hotels will open in August this year.

The aim is to develop a hotel in 196 countries by 2026. To launch the ambitious programme, Ugwunwa Ajike Hotels has announced its first eight hotels will open in August this year. The first hotels will be opened in Aberdeen UK, Kansas City, USA, Lagos, Nigeria, Rome, Italy, Barbados, Ireland, Saudi Arabia and Accra, Ghana.

The concept is to develop quality hotels in cities that are popular for tourists. By having a hotel in every country, wherever they are in the world guests will be able to stay in a Ugwunwa Ajike Hotel, and be confident of the consistent style, high quality and service that they will receive.

All the hotels in the group will have a 5 start rating and will feature a restaurant on-site. Other features of the hotels will include penthouses, casinos, bars, nightclubs, an in-house retail store selling Queen Catherine’s private designer collections, beauty spas, fitness areas, prayer rooms, and amusement parks.

Ugwunwa Ajike Hotels is part of the Kate Ajike Corporation, which is registered and based in London. Queen Catherine Ajike herself is based in London and Abia State, Nigeria.

Queen Catherine Ajike said: “2018 is going to be the year that our vision starts to become a reality. Our site in Lagos Nigeria is being constructed and will open for business in August this year. Our other seven sites are existing hotels which we are in the process of purchasing and they will then go through a complete renovation to bring them up to the Ugwunwa Hotel five star standard.

“We have identified a further 20 countries where we will open Ugwunwa Ajike Hotels during 2019, and the ambitious development programme will continue until 2026, when we will have realised our dream of having hotels in 196 countries across the globe.

The Kate Ajike Corporation is financing the development of the initial set of hotels, but Queen Catherine Ajike is open to welcoming major investments of $3 million plus. She continued: “We are on a very exciting journey. Our hotels will stand out in the marketplace due to the quality, location and facilities, such as our in-house retail store offering unique, high-end designer collections.”

Nigeria Ranks 90 on Budget Transparency Index

Business Journal

01/02/2018

BudgIT expresses dismay at Nigeria’s current position on fiscal transparency and public participation in the budget process as Africa’s largest economy has apparently taken steps backwards despite persistent advocacy by citizens and repeated promises by the government to improve.

Nigeria slips into 90th place behind Zimbabwe and Afghanistan on the Open Budget index released yesterday. The Open Budget Index assesses the comprehensiveness and timeliness of budget information that governments make publicly available.

The Federal Government of Nigeria provides her citizens with insufficient budget information making it difficult for taxpayers to understand how elected officials are utilising available resources. Also, the budget process takes very little feedback from the public, and the final budget document does not reveal how the meagre feedbacks are used.

Nigeria’s score on the open budget index dipped from 24 in 2015 to 17. In Africa, Nigeria currently ranks 23 behind Rwanda, Zimbabwe and Liberia while South Africa, Uganda and Senegal top the index in Africa.

Nigeria’s low rank can be connected to the failure of the federal government to produce the mid-year review. Also, the Medium Term Expenditure Framework (MTEF) and the Budget Implementation Reports were published late while the content of all budget documents produced in Nigeria falls short on the minimum acceptable global standards as itemised in the Global Initiative for Fiscal Transparency Framework.

BudgIT urges the Federal Government to improve the timeliness of the release of its essential budget documents and run an open budget system. It is also vital that Nigeria improves on the comprehensiveness of the critical budget documents, including the Medium Term Expenditure Framework (MTEF), the Budget Implementation Reports, the executive budget proposal, the enacted budget and the year-end report.

Nigeria also needs to produce and publish a mid-year review of fiscal activities in line with the minimum global standard in budgeting. There is also an urgent need for a structured participatory mechanism designed to capture views of the public throughout the budget cycle.

Guinness Nigeria: Earnings Rebound From Q1 Low Despite Weakening Margins

Business Journal

01/02/2018

Yesterday, GUINNESS released Q2-17/18 results showing net profit of NGN2.09 billion (vs. NGN2.44 billion loss last year), driven by (1) continued revenue growth, (2) better margin, and (3) lower opex and finance charges.

The net profit was equally higher compared to Q1-17/18’s NGN41.4 million, but below our NGN2.70 billion estimate and consensus expectation of NGN2.8 billion.

Revenue grew by 11% y/y and 36% q/q, sustained by festive demand, strong marketing effort, and relatively higher prices. DIAGEO (GUINNESS’ parent company) stated in a press release recently that the group enjoyed positive price in Nigeria, and that mainstream spirits and value beer (Dubic precisely) recorded faster growth during the period.

Sales volume was reported to have grown by about 17% y/y over H1-17/18. Value beer (23% y/y), Guinness (14% y/y), Malta Guinness (6% y/y), and main stream spirits (22% y/y) recorded net sales growth in the first half.

While gross margin remained higher relative to the last financial year (+601 bps y/y), we are quite surprised by the 118 bps decline compared to the first quarter. Compared to our estimate, gross margin was lower by c.650 bps, and has weakened consistently since reaching record 55% in Q3-16/17, reflecting, as we stated in the Q1 note, growing contribution of value beer and inflationary pressure on key raw material input prices (Sorghum in this case).

On the positive, opex was lower by 12% y/y and was below our estimate by 25%. Admin and distribution expenses were lower by 25% y/y and 24% y/y respectively while marketing expenses increased (following focused campaigns on Guinness) by 20% y/y. EBITDA margin of 15.4% was reported, significantly higher y/y, but lower by 96 bps q/q.

Also worth highlighting is the 65% y/y decrease in finance charges, comprising NGN583 million loss (NGN857 million in Q2-16/17) on foreign exchange transactions and N374 million (vs. NGN1.9 billion in Q2-16/17) related to interest expense on loans and borrowings and overdraft facilities.

Compared to Q1, FX loss and interest expenses were lower by 74% and 77% respectively. Gross debt now stands at NGN12.5 billion post-Rights Issue, and the consequent reduced interest burden will remain supportive of earnings for the rest of 2018.

Continued growth in revenue and the savings on both operating and financing costs bode well for GUINNESS’ earnings in 2018.

However, continued weakening margins dampens earnings growth expectation from 2019, as the effect of low revenue and finance cost bases tapers. The stock has gained 20% YtD, and positive reaction to the result is expected. Our estimates are under review.

IoT Market in Africa, ME Targets 15% Growth in 2018

Business Journal

01/02/2018

The Middle East and Africa (MEA) Internet of Things (IoT) market is set to grow 15% year on year in 2018, according to a recent update to the Worldwide Semiannual Internet of Things Spending Guide from International Data Corporation (IDC).

The global technology research and consulting firm’s latest forecast shows MEA spending IoT reaching $6.99 billion in 2018 and $12.62 billion by 2021 as organizations ramp up their investments in the hardware, software, services, and connectivity that enable IoT solutions.

“IoT adoption in the MEA region is expected to accelerate over the coming year as organizations from both the public and private sectors increasingly digitalize their businesses in a bid to automate their operations and ramp up productivity,” says Wale Babalola, a research analyst for telecommunications and IoT at IDC MEA. “And as organizations increasingly realize the added value that is provided by IoT, we can expect to see further development of innovative industry-specific solutions.”

Totaling $2.48 billion, IoT services is forecast to be the market’s largest technology category in 2018, with the majority of this total going towards ongoing services, IT services, and installation services. Hardware will be the second-largest technology category, followed by software and then connectivity.

The vast majority of hardware spend (85%) will go towards modules and sensors. Meanwhile, software will be market’s fastest growing category over the coming years, with spending in this area increasing at a compound annual growth rate (CAGR) of 21.3% over the 2016–2021 forecast period.

The industries that are expected to spend the most on IoT solutions in 2018 are manufacturing ($1.07 billion), transportation ($0.85 billion), cross industries ($0.76 billion), utilities ($0.75 billion), and consumer ($0.68 billion).

Manufacturers will direct most of their IoT spending over the coming 12 months towards solutions that support manufacturing operations and production asset management. Over in the transportation sector, fleet management and freight monitoring will account for up to 78% of IoT spending in 2018.

In the “cross industries” category, which represents use cases common to all industries, IoT spending will largely focus on smart buildings and connected vehicles. Smart grids for electricity will account for a little over 82% of total IoT spending in the utilities sector, while around 50% of consumer IoT spending will be driven by investments around smart buildings.

The IoT use cases that IDC expects to attract the largest investments in 2018 are smart grid electricity ($0.62 billion), manufacturing operations ($0.57 billion), freight monitoring ($0.52 billion), smart home ($0.41 billion), and remote health monitoring ($0.40 billion).

IDC forecasts manufacturing operations to overtake smart grid electricity into top spot by 2021. The use cases that will see the fastest spending growth over the 2016-2021 forecast period are insurance telematics (32.4% CAGR), smart buildings (31.4% CAGR), airport facility automation (30.5% CAGR), in-store contextualized marketing (28.8% CAGR), and electric vehicle charging (28.3% CAGR).

“The growing implementation of initiatives that leverage digital solutions will continue to fuel IoT adoption over the coming 12 months, particularly in Saudi Arabia and the UAE, ” says Babalola. “As such, these two countries combined are expected to contribute $1.57 billion of the MEA region’s total IoT spending of $6.99 billion in 2018.”

NITDA Warns of Potential Cyber Attacks in 2018

Business Journal

30/01/2018

The management of the National Information Technology Development Agency (NITDA) would like to bring to the attention of Ministries, Departments and Agencies (MDAs), other government establishments, the organised private sector and the general public of potential cyber-attacks likely to be experienced this year as well as the precautionary measures to be taken.

The Agency’s Computer Emergency Readiness and Response Team (CERRT), in conjunction with other industry stakeholders, in their efforts at ensuring a safe and secure cyberspace, have intercepted some signals of potential cyber-attacks targeting banking, health and other systems, power and transportation systems, as well as other critical national infrastructure.

In this regard, the need for all to be vigilant and proactive as far as security is concerned cannot be overemphasized. We therefore recommend the following precautionary measures:

efforts should be intensified at ensuring that any data is encrypted, particularly any sensitive or personal data;
ensure that networks are fully secure through the use of wired network thereby protecting them from possible hackers’ attempt at using Wi-Fi security lapses to remotely break into computer systems;
where Wi-Fi network is used, ensure that an up to date encryption standard is in use and turn off the service set identifier (SSID) broadcasting function on the wireless router if it is not needed;
ensure that free Wi-Fi connections as well as other wireless connections such as Bluetooth or infrared ports are not used unless where necessary;
ensure that operating systems and other software applications are regularly updated with the latest patches;
ensure that anti-malware protection is installed on all IT systems as this will help in protecting your organisation’s network from potential attacks through virus-laden software and email attachments. Also, all security software should be adjusted to scan compressed or archived ensure that appropriate guidelines are in place for connecting personal devices into the organisation’s network;
ensure the use of credential vaults and multi-factor authentication instead of user passwords;
ensure that the organisation’s data and critical files are regularly backed up; and
ensure that there is an organisation-wide enlightenment campaign, awareness and measures put in place to deal with cyber security threats as well as the procedures they must always follow when using their workstations.

NITDA is working with all critical stakeholders to come up with effective ways of adequately protecting the Nigerian cyberspace. We therefore call on all Nigerians to support the Agency by doing their best at protecting themselves as well as the information and systems under their care.

The National Information Technology Development Agency (NITDA) is an Agency under the Federal Government of Nigeria. The Agency was created in April 2001 to implement the Nigerian Information Technology Policy and co-ordinate general IT development and regulation in the country.

Specifically, Section 6(a, c & j) of the Act mandates NITDA to create a framework for the planning, research, development, standardisation, application, coordination, monitoring, evaluation and regulation of Information Technology practices, activities and systems in Nigeria; and render advisory services in all information technology matters to the public and private sectors including introducing appropriate information technology legislations and ways of enhancing national security and the vibrancy of the industry.

Dangote Donates N1.2bn Building to Bayero Varsity Business School

Business Journal

30/01/2018

In his avowed commitment to encouraging entrepreneurship in the country as a way out of the economic doldrums, Nigeria’s business magnate, Aliko Dangote, is donating another N1.2 billion structure for running of business school in Bayero University, Kano (BUK).
The building which will be handed over to the university management formally next month is a state of the art edifice and will effectively mark the commencement of study of business in the institution and the first in the Northern part of Nigeria.
It would be recalled that Dangote is also building a similar business school in the University of Ibadan that would be commissioned anytime soon.
The Business Schools being undertaken by the Aliko Dangote Foundation, according to the President of Dangote Group is part of the efforts to build entrepreneurship in the sub-consciousness of Nigerians through education at the highest level.
He explained that the situation Nigeria has found itself necessitates revisiting school curriculums to reflect the new consciousness of entrepreneurship and manufacturing and efforts made to encourage study of business especially at the second level in the university.
When visited, the building which has been completed and awaiting commissioning, is a modern Business School within the premises of Bayero University, Kano. It comprises of auditoriums, lecture theatres, offices, classes, library, and complete electrical fittings and cooling system, among others.
Speaking on the gesture by Africa’s richest man, the BUK Dean of Faculty of Dangote Business School, Professor Murtala Sagagi said that there was no Business School in Bayero University, Kano (BUK) until Dangote started the project.
“We have an ambition to have a business school and we could not go ahead with the project because there was no befitting structure to accommodate the kind of dream we had but with Dangote coming in about five years ago and that was when the University decided to say this is the time to have the business school,” he said.
He noted that Kano is the second most vibrant commercial city in the country after Lagos, saying “we have industries, banks, different type of businesses, micro, small, medium and large enterprises.”
“We are having large scale investors from China, Spain and all over the world coming to Kano to make investment and this means the State needs an institution, a kind of faculty, school that can able to develop the capacity not only the management of those organisation but those people who are working in different units or department within the organisation.”
“Looking at the public sector, we have limited capacity in budget, project management, which has led to things not moving well in the country. With our unique disadvantage here in Northern Nigeria, the South is far ahead in terms of capacity level, for example there are about 20 universities in Ogun State, while in Kano State, we have only three universities and all of them owned either by the state government or federal government. It is just of recent that we are getting private investors coming in.”
Sagagi pointed out that all these show that there is a need for massive capacity building in Management, Finance, Marketing, E-Business, and particularly entrepreneurship and innovation in this part of the country and also for the entire country.
He noted further that “Bayero University has a unique reputation in the whole country and this explains why in the last National Institution Accreditation exercise, BUK became the best University in the Country, not because we have the best of everything but because of the quality of our curriculum, faculty and most importantly the quality of the students.”
The dean added that “the Dangote Business School is a great development and we hope that this business school will not only be seen as a Kano business school or Northern business school because I can tell you about 40 per cent of our students are not from Kano and more than 22 per cent of our student are from Southern part of the country.”
He urged other eminent Nigerians with wealth to emulate Dangote and contribute to the education advancement of the nation as a way of boosting the country’s economic development pointing out that “if Nigeria is blessed with two of Alhaji Dangote, Nigeria will witness unprecedented economic boost in terms of job creation, employment and poverty reduction.”

Market Statistics: Monday, 29th January 2018

Business Journal

30/01/2018

Market Cap (N’bn)	15,882.6
Market Cap (US$’bn)	51.9
NSE All-Share Index	44,306.48
Daily Performance %	1.2
Week Performance %	(1.3)
YTD Performance %	15.9
Daily Volume (Million)	573.3
Daily Value (N’bn)	5.9
Daily Value (US$’m)	19.2

Equities Market Opens on a Positive Note… NSE ASI up 1.2%
The equities market opened the week on a positive note as the All Share Index (ASI) rose 1.2% to 44,306.48 points while YTD return improved to 15.9%. Accordingly, investors gained N191.0bn in value as market capitalization grew to N15.9tn.

Today’s performance was largely driven by buying interest in DANGCEM (+3.0%), FBNH (+2.7%) and UBN(+4.5%) although a broad-based rally was observed across sectors. On the contrary, activity level declined as volume and value traded fell 39.3% and 17.5% to 573.3m units and N5.9bn respectively.

Industrial Goods Index Leads Gainers
Sector performance was largely bullish as 4 of 5 indices closed northwards. The Industrial Goods index led gainers, up 1.7% owing to a rally in DANGCEM (+3.0%), WAPCO (+0.7%) and CCNN (+0.6%). The Banking index trailed, rising 0.9% largely due to buying interest in DIAMOND (+9.8%), UBN (+1.0%) and UBA (+1.6%).

Similarly, the Insurance and Oil & Gas indices appreciated 0.6% and 0.3% respectively as investors took positions in AIICO(+6.8%), WAPIC (+4.9%) and FORTE (+1.2%). On the flip side, the Consumer Goods index was the lone loser, shedding 0.7% as DANGSUGAR (-4.6%) GUINNESS (-1.8%) and NIGERIAN BREWERIES (-1.2%) recorded losses.

Investor Sentiment Softens
Investor Sentiment, measured by market breadth (advance/decline ratio) softened to 3.4x from 3.6x recorded the previous Friday consequent on 40 stocks advancing relative to 12 stocks that declined.

The best performing stocks were DIAMOND (+9.8%), TRANSCORP (+9.8%) and CILEASING (+9.7%) while DANGSUGAR (-4.6%), REDSTAREX (-4.5%) and LASACO (-4.0%) were the worst performers.

In a related news, the NSE implemented the revised par value rule today, indicating a price floor of N0.01 for stocks traded on the stock exchange. As a result, only four stocks –ABCTRANS (-4.0%), ROYALEX (-4.0%),PRESTIGE (-4.0%) and LASACO (-4.0%) traded below the previous price floor of N0.50, closing at N0.48 each respectively.

This week, we expect market performance to be largely mixed although skewed to the positive as investors position in previous decliners.

NAICOM, Governors’ Forum Partner on Insurance Penetration

Business Journal

29/01/2018

L-R: Barineka Thompson, Director, Supervision; Mr. George Onekhena, Deputy Commissioner, Finance and Administration; Mr. Sunday Thomas, Deputy Commissioner, Technical; Mr. Oba Olufemi, Director, Finance & Accounts and Dr. Habila Amos, Director, Research, Statistics & Corporate Strategy, all of the National Insurance Commission (NAICOM) at a seminar organised by NAICOM for Insurance Journalists in Benin, Edo State, at the weekend.

The National Insurance Commission (NAICOM) says it will leverage on the Nigeria Governors’ Forum (NGF) to deepen penetration of insurance in Nigeria.

Mr. Sunday, Thomas, Deputy Commissioner at NAICOM said at a NAICOM Seminar for Journalists in Benin-City, Edo State that the drive to engage the NGF is meant to take insurance awareness and penetration to every part of the country within the shortest possible time.

“This year, we are looking at penetration, which gives NAICOM an ample opportunity to deepen the market and sustain past achievements of the Commission in the industry. We are getting into the second phase of the Market Development and Restructuring Initiative (MDRI) to leverage on the achievements of the first phase. We are also leveraging on the Nigeria Governor’s Forum to reach every state of the Federation.”

He listed the objectives of the second phase of MDRI as collaboration with sister organizations, enhancing market distribution channels and financial inclusion.

‘7 Key Indices to Drive Equity Market in 2018’

Business Journal

29/01/2018

Ayodeji Ebo MD Afrinvest Securities Limited

Mr. Ayodeji Ebo, Managing Director, Afrinvest Securities Limited, says the equity market in Nigeria would be driven largely by seven key indices of political uncertainty as a result of the 2019 general elections, sustainable stability in the Niger-Delta region, implementation of the 2018 budget, sustenance of forex stability, new market listings and earnings of corporate firms operating in the economy.

Ebo said in a paper ‘Nigeria’s Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ that he expects the federal government to curtail current security challenges in the country to create better outlook for the 2019 elections, as well as engage in ground-breaking capital projects before the elections.

“We don’t expect the federal government to increase tariff on electricity and fuel prices because of political considerations. However, we expect stable forex regime in 2018, which would also lead to pressure. On the Gross Domestic Product (GDP), our expectation is on 2.1 percent growth.”

He advised investors to focus on treasury bills to make derive revenue in the year.

“Treasury bills is the way to go in 2018 to generate less risky revenue in the financial market. Investors should equally focus on stocks that have strong fundamentals.”

Linkage Assurance, Niger Delta Varsity to Harness Talent for Insurance Industry

Business Journal

29/01/2018

L-R: Dr Pius Apere, Managing Director/CEO, Linkage Assurance Plc in a handshake with Professor Samuel Edoumiekumo, Acting Vice Chancellor, Niger Delta University (NDU) during a Career Talk by Linkage Assurance Plc at the University Campus in Bayelsa State.

Underwriting firm, Linkage Assurance Plc in collaboration with the Niger Delta University (NDU) has commenced moves to harness exceptional talents for the nation’s insurance industry.

The effort is targeted at giving opportunities to students of insurance, actuarial and financial management as well as those in mathematics and engineering sciences to make career in insurance and actuarial profession.

Dr Pius Apere, Managing Director/CEO, Linkage Assurance Plc who led management of the Company on a Career Talk to the university community said insurance industry is in serious need of actuarial professionals, more so that the sector is getting bigger with a lot of growth potentials.

Apere who was received by the Acting Vice Chancellor, Professor Samuel Edoumiekumo and the council members of the University at its main campus in Bayelsa State, underscored the commitment of Linkage Assurance to help exceptional students of the institution make career in the industry.

Dr Pius Apere in his paper titled ‘Are You Fit To Be An Actuary’, said Linkage is instituting an annual cash award of N200, 000 to best graduating student in insurance beginning from the 2018 academic session.

Besides that, the company is also offering internship opportunity to 300 – 400 level students of insurance, and opportunity for absorption after graduation.

According to him, Linkage plans to set up an Actuarial Unit in 2018, and best three candidates with Maths, Physics, Engineering or other strong quantitative degrees will be considered for immediate employment.

Professor Edoumiekumo in his remarks thanked Linkage Assurance Plc for the partnership, which he said is a dream come true.

He stated that his administration is committed to enhancing the relationship between the University and industries, in the different sectors of the economy, so that products of the university will have practical experience before they move into the labour market.

Edoumiekumo expressed the determination of the University to provided the needed platforms that give students the opportunity to advance their career while still undergraduates, pointing that what Linkage has done was a long dream that has come through.

Imo O Imo, Head of Strategy, Linkage Assurance Plc in his presentation titled ‘Insurers As Gate Keepers’ explained to the university community on the career opportunities in the insurance industry, while tasking the students to take advantage of this eye-opener to plan their career.

Imo also challenged them to start taking professional examinations while still in school, as that is the only way to make them competitive and candidates of choice in the labour market after graduation.

IMF Projects 3.9% Global GDP in 2018, 2019

Business Journal

29/01/2018

The upturn in economic growth prospects for the global economy is an opportunity to “fix the roof while the sun shines” and to shift the recovery from a cyclical to a structural one, financial leaders said on the closing day of the World Economic Forum Annual Meeting 2018.

The uptick provides policy-makers with an opportunity to improve policies to make economies more resilient and ensure a different distribution of the benefits of growth to address growing inequality.
Christine Lagarde, Managing Director, International Monetary Fund (IMF), Washington DC, said the global economy is in a sweet spot due to a cyclical upswing and mostly good monetary and fiscal policies. More than 120 countries are positioned for growth.
“All major developed and developing economies are doing well and let’s celebrate that,” Lagarde said. However, she cautioned that the good news is not across the board and one-fifth of emerging and developing countries are set to see a decline in per capita GDP for a combination of reasons.
Lagarde listed a few other concerns. The first is potential financial vulnerability. While US tax cuts will have positive results in the short term, this may lead to inflated asset prices and easy financing, which comes with risks. The second is excessive and growing inequality, which is creating fractures; and lastly, the lack of international cooperation and the geopolitical risks this presents.
Mary Callahan Erdoes, Chief Executive Officer, Asset and Wealth Management, JPMorgan Chase & Co., USA, said it is important for the world to get back onto a road where it does not experience boom-and-bust cycles. She commended stakeholders in the international financial system, including policy-makers and central bankers, for avoiding a second recession and getting the global economy back on to the road to recovery. The process, she said, has been complicated and difficult. “People have worked tirelessly to get this right. It’s okay to celebrate where we are and how we got here.”
Two central bankers of some of the world’s biggest economies spoke about the short-term outlook for their nations.
Haruhiko Kuroda, Governor of the Bank of Japan, said Japan has notched up seven straight quarters of economic growth of close to 2% – the longest positive run in Japan’s post-war history.
However, the central bank faces a continuing challenge of trying to move inflation towards the state’s 2% target, which will help it boost the economy. Consumer prices and wages are inching up, but a key challenge is the tenacious deflationary mindset among consumers after 15 years of deflation. Demography is also a challenge for Japan, with labour shortages in almost every sector of the economy.
Mark Carney, Governor of the Bank of England, said his country is on the path to normalization. He warned of complex decisions on monetary policy ahead as the Brexit process unfolds, but gave the assurance that the financial sector has been strengthened in the wake of the 2008 crisis and has plenty of safeguards and “shock absorbing capacity”.
Carrie Lam, Chief Executive of Hong Kong SAR, said Hong Kong, as an open economy, was benefiting from global recovery, with full-year growth of 3.7% expected for 2017 against 2% in 2016. Hong Kong is positioning itself to take advantage of opportunities in Asia and particularly China. “We should also take this opportunity to improve governance, to focus more on trade rules, more regulatory collaboration and to put in policies to deal with poverty and income disparity.”
On the long-term global prospects, panellists listed the need to improve productivity, focus on innovation, improve trade and strengthen the World Trade Organization processes, particularly with regard to trade in services. Corporate attention to and financing of efforts with regard to climate change was flagged as a positive long-term development.
The World Economic Forum’s 48th Annual Meeting is took place on 23-26 January 2018 in Davos-Klosters, Switzerland.

More than 3,000 leaders from around the world are gathering in a collaborative effort to shape the global, regional and industry agendas, with a commitment to improve the state of the world.

Coscharis Presents a Ford Ranger to Next Titan Winner

Business Journal

29/01/2018

Abiona Babarinde, General Manager, Marketing & Corporate Communications, Coscharis Group presents the keys to a brand new Ford Ranger to Iyeh Kennedy, winner, The Next Titan Season 4.

Iyeh Kennedy, winner, The Next Titan Season 4 stands next to his brand new Ford Ranger.

Ford Motor Company, in collaboration with its local distributor Coscharis Motors, is honoured to present a brand new Ford Ranger to Iyeh Kennedy, winner of the Next Titan, Season 4. The winner was announced on 10 December 2017.

“Ford and Coscharis Motors would like to take the opportunity to congratulate Iyeh Kennedy on his achievement,” says Abiona Babarinde, GM Marketing, Coscharis Motors. “We are proud to be a sponsor of the Next Titan, and to hand over a Ford Ranger to the winner, to support his existing business.” The 2.2 litre diesel XLT model 4×4 double cab is valued at N16 million.

The Next Titan is a good fit for the Ford brand, as business people with small and medium size enterprises (SMEs) are a significant client base for Ford in Nigeria. The Ranger nameplate, renowned for its outstanding Built Ford Tough capability, technology, convenience, and comfort, is the ideal vehicle for any entrepreneur, be it a tech CEO, farmer, IT business owner, fashion designer, media mogul, hotelier, or supermarket owner.

The Next Titan, the fourth season of which premiered on 8 October 2017, is a global standard television platform designed to educate young Nigerians about entrepreneurship, encouraging them to consider this as a career path, and helping to reduce the high rate of unemployment. Sixteen participants, between the ages of 21 and 39, challenged one another for 10 weeks in various business tasks, including strategy, sales, marketing, and promotions. During the competition, participants and viewers had the opportunity to interpret real-life entrepreneurial challenges through informal training, and to learn from top business leaders how to start or grow their own businesses.

“Coscharis Motors is grateful for the opportunity to collaborate with young, talented Nigerian entrepreneurs, and assist with their business objectives,” says Babarinde. “We will continue to work together with Ford, to build on skills development and training in the country, not just in the automotive industry, but across the board in Nigeria.”

CBN Injected $16bn to Stabilise Forex Market in 2017

Business Journal

25/01/2018

Mr. Godwin Emefiele Governor Central Bank of Nigeria — Godwin Emefiele Governor Central Bank of Nigeria

The Central Bank of Nigeria (CBN) has so far injected $15.9 billion in a period of nine months to stabilise the foreign exchange (forex) market via weekly interventions, according to Mr. Ayodeji Ebo, Managing Director, Afrinvest Securities Limited.

Ebo said at a Forum organised by the Finance Correspondents Association of Nigeria (FICAN) on the theme: ‘Nigeria’s Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ Lagos that the intervention funds started in April and ended December last year. He said the figure was an improvement compared to the $9.6 billion spent in during the same period of 2016.

The Afrinvest chief also said the Investors’ & Exporters’ Forex Window has recorded over $27.8 billion in turnover and brought about transparency and stability in the market.

He added that current account stabilised in surplus position, expanding to $9.6 billion annualised in nine months, from $2.7 billion in fiscal year 2016.

Speaking on loans to small and medium enterprises, he said delay and outright non-payment of borrowed funds by SMEs is making it difficult for key lenders within the sector, including Bank of Industry to grant further credits to operators.

He said it is only when loans are repaid on timely basis that the lender has more capacity to lend to their borrowers.

He said that inflation rate is still higher than Monetary Policy Rate (MPR), which makes it easier for investors to go for fixed income securities like Treasury Bills, Bonds and other instruments that help investors create lasting wealth.

Ebo said 2018 remains an opportunity for investors to make money in both equities and fixed income securities, but advised investors to time their entry and exit accurately in order not to lose their funds.

According to him, there is strong correlation between oil price rise and equities performance, adding that investors always look out for profitable businesses and those with great prospects.

Speaking on the stability in the forex market, he said rate convergence has already been achieved by the CBN, adding that with low exchange rate margin, speculators have virtually abandoned the market.

“Foreign investors also consider the margin between both official and parallel market level. When there is little or no volatility in the market that gives foreign investors’ confidence. The naira gained 35 per cent year-on-year against the dollar to close at N363 to dollar by year-end in the parallel market,” he said.

He said the Economic Recovery and Growth Plan (ERGP) of the Federal Government was built on five pillars, stabilise the micro-economic environment, achieve agriculture and food security, improve transportation infrastructure, ensure energy sufficiency in power and petroleum products and drive industrialisation, focusing on small and medium enterprises.

Local Bourse Extends Losses to Fourth Consecutive Session… NSE ASI Down 99bps

Business Journal

25/01/2018

Following 3 days of negative performance, the local bourse yet again extended losses to the 4th consecutive session as the All Share Index fell 99bps to close at 43,529.06 points while YTD return moderated to 13.8%.

Consequently, investors lost N155.7bn as market capitalisation fell to N15.6tn. Sell pressures across board especially in banking stocks –GUARANTY (-2.0%), STANBIC (-5.0%) and DIAMOND (-9.3%) continued to weigh on performance. However, activity level was mixed as volume traded declined 6.6% to 500.9m units while value traded rose 28.0% to settle at N6.6bn respectively.

Mixed Sector Performance
Sector Performance was mixed today as 2 of 5 indices closed in the red, 2 trended northwards and the other flat. The Industrial Goods index led laggards, down 2.0% following losses in DANGCEM (-3.3%). Likewise, the Banking index shed 0.4% consequent on price depreciation in GUARANTY (-2.0%), DIAMOND (-9.3%) and ETI (-1.5%).

On the other hand, the Consumer Goods index emerged the top gainer closing the day 0.7% higher, as DANGSUGAR (+10.2) and NESTLE (+1.7%) buoyed performance. The Oil & Gas index also appreciated, up 0.3% following a rally in SEPLAT (+1.1%). The Insurance index closed the day flat.

Investor Sentiment Strengthens
Investor sentiment- measured by market breadth (advance/ decline ratio) improved to 0.7x from 0.3x recorded yesterday consequent on 21 stocks advancing against 30 decliners.

Today’s best performing stocks were DANGSUGAR (+10.2%), AFRIPRUD (+4.2%) and UBA (+4.1%) while the worst performers were GLAXOSMITH (-9.7%), CAVERTON (-9.4%) and DIAMOND (-9.2%). We expect a negative close to the week following 4 consecutive days of losses as investors continue to lock in profits.

Market Statistics: Thursday, 25th January 2018

Market Cap (N’bn)	15,603.9
Market Cap (US$’bn)	51.0
NSE All-Share Index	43,529.06
Daily Performance %	(1.0)
Week Performance %	(2.9)
YTD Performance %	13.8
Daily Volume (Million)	500.8
Daily Value (N’bn)	6.6
Daily Value (US$’m)	21.7

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