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African Airlines to Lose $100m in 2018

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The International Air Transport Association (IATA) says African carriers are expected to continue to make small losses of $100 million in 2018 following a collective net loss of $100 million in 2017.

Stronger forecast economic growth in the region is expected to support demand growth of 8.0% in 2018, slightly outpacing the announced capacity expansion of 7.5%.

The wider economic situation is only improving slowly in Africa, which is hampering the financial performance of its airlines.

The key Nigerian economy is only just out of recession and growth in South Africa remains extremely weak. While traffic is growing, passenger load factors for African airlines are just over 70% which is over 10 percentage points lower than the industry average.

With high fixed costs, this low utilisation makes it very difficult to make a profit. Stronger economic growth will help in 2018, but the continent’s governments need a concerted effort to further liberalize to promote growth of intra-Africa connectivity.

Economic Impact of Aviation

  • Unique city pairs served by airlines grew to over 20,000 in 2017 (+1,351 on 2016 and double the 10,000 city pairs served in 1996). This saves time for users and opens new links for tourism, trade and investment.
  • Since 1996, the inflation-adjusted cost of air transport to consumers has halved.
  • International tourists travelling by air are expected to spend more than $750 billion in 2018, a rise of 15% in just over 2 years.
  • The value of goods carried by airlines is expected to exceed $6.2 trillion in 2018, representing 7.4% of world GDP.
  • Direct employment by airlines will exceed 2.7 million worldwide in 2018. On average across the world we forecast that in 2018 each airline employee will generate over $109,000 of gross value added (the firm-level equivalent to GDP), which is considerably higher than the economy-wide average.

Global Airlines Financial Monitor: November 2017

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IATA
  • The latest financial data show that the industry-wide profit margin remained broadly unchanged in Q3 compared to a year ago, at a robust 15.7% of revenues. All regions except North America posted annual increases in profitability.
  • Underlying industry-wide passenger yields have trended broadly sideways over the past 12 months or so. An increase in the US dollar, as well as weather-related disruption, have both influenced recent yield developments.
  • Global airline share prices increased by 4.6% in November – the biggest monthly gain since May – driven by a strong increase for North American airlines. Airline shares have outperformed the wider market over the past year.
  • Oil prices rose to a 17-month high of more than US$64/bbl during November, in anticipation of the recent agreement by OPEC and Russia to extend oil production cuts until the end of next year.
  • Once again, passenger and freight volumes both posted robust year-on-year growth in October, but the seasonally adjusted (SA) upward trends in each of the series have eased. The passenger load factor posted a record-high for the month of October (80.8%), while the SA freight load factor is maintaining levels last seen in late-2014.
  • Despite an ongoing spread in performance at a route level, stronger global trade conditions are continuing to support premium-class demand on markets to, from, and within the key manufacturing region of Asia.

Vodacom CEO: Businesses Need New Tech to Drive Productivity

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Vodacom

L-R:, Managing Director Vodacom Business Nigeria, Mr Lanre Kolade, Managing Director Avon Healthcare Limited, Ms. Adesimbo Ukiri, and Director-General, Budget Office of the Federation, Mr. Ben Akabueze at the recently held CEO Forum, in Lagos.

As Technologies such as Internet of Things (IoT) and Big Data Analytics continue to transform and disrupt the business world, the Managing Director of Vodacom Business Nigeria, Lanre Kolade, calls on Nigerian businesses to adopt new technologies to drive productivity and efficiency to remain competitive.

Speaking at the recently held CEO Forum Nigeria 2017, an annual thought leadership initiative in collaboration with McKinsey & Co, Kolade said “Technology such as IoT enables growth across business sectors. Today, many organisations are using this technology to cut costs, reduce risk, increase revenue and efficiency.”

Businesses in the Africa are gradually adopting IoT, with Nigeria being one of the leading IoT markets in Africa. This adoption is driven by the increasing availability of affordable smart devices, coupled with the need for enterprises to deliver shareholder value. According to the Vodafone’s Global IoT barometer report 2017, the adoption of IoT has grown significantly from 12% in 2013 to 29% in 2017 and 49% of these adopters use IoT in conjunction with analytics to improve business decision-making.

In Africa, disruptive technologies such as IoT hold significant potential and the opportunities are found in different sectors. From Finance and Insurance to Manufacturing and Agriculture, including the Education sector, organization of all sizes are using IoT to optimize processes, automate production and monitor the supply chain. Speaking further at the event, Lanre Kolade said “We can use technology to disrupt education, with broadband penetration, digitization becomes possible and education contents will be more accessible to all in Nigeria”.

Vodacom is using technology to address challenges in, education, healthcare and agriculture in Africa. Vodacom recently deployed IoT solution for education and healthcare in Kaduna state using a mobile school management solution which provides real-time visibility of all administrative activities at over 4000 schools. The healthcare solution monitors stock level and distribution of essential medicines in over 250 medicine dispensary facilities in the state.

Miss Insurance 2017 Visits Law Union & Rock Insurance

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Miss Insurance 2017

L-R: Chief Marketing Officer, Mr. Steve Ajudua; Head, Human Capital Management, Mrs. Eyoanwan Ndiyo- Aiyetan; Managing Director/CEO Mr. Jide Orimolade; Ms. Ezekiel Precious, Miss Insurance Nigeria 2017; ED, Technical and Operations, Mr. Supo Sogelola; Chief Technical Officer, Mrs. Folake Afolabi and Chief Financial Officer, Mr. Olayiwola Olabisi during her courtesy visit to the company.

Ford Ranger Wins Auto Brand Award 2017

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ford

The Ford Ranger has been named the Auto Brand of the year at the 7th Marketing World Awards (MWA), held recently at the Kempinski Ambassador Hotel in Accra, Ghana.

The Ford Ranger was selected for its innovative features, performance, capability and superior comfort. The vehicle is considered to be the overall best brand in the pick-up segment.

“We are proud to be associated with Ford Motor Company and will continue to offer vehicles with a blend of all-round performance. Coscharis Motors has always believed that the Ford Ranger is the brand to beat in its segment and we are grateful that the judges and customers have affirmed our belief,” said Abiona Babarinde, General Manager Marketing and Corporate Communications at Coscharis Motors, who received the award on behalf of Ford.

Ford Ranger pick-up trucks are well equipped and ideally suited for both work and leisure. There is a specification to meet most pick-up needs with loads of exciting features – from the engine which comes in 2.5L petrol, or a choice of 2.2L or 3.2L diesel engines, to the next-level connectivity offered through Sync3.

The regular cab is the perfect choice if your main priority is to use the generous load-carrying capacity. The double cab 4×2 or 4×4 offer the most car-like ownership experience of all Ford Ranger body styles, providing seating for up to five adults. With a water wading level of up to 800mm and hill ascent and hill descent technology, you are sure to conquer some of the most difficult terrains in a Ford Ranger. The Ford Ranger Wildtrak is the top of the range model.

The Marketing World Awards is an annual pan-African event designed to celebrate individuals and organisations that have in one way or the other put Africa on the map of global marketing with their extraordinary exploits.

Last year, the Ranger was also voted the Pick-up of the Year by the organizers of the Nigerian Automobile Journalists Association (NAJA).

Global Aviation Sector Targets $38.4bn Profit in 2018

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emirates

The International Air Transport Association (IATA) forecasts global industry net profit to rise to $38.4 billion in 2018, an improvement from the $34.5 billion expected net profit in 2017 (revised from a $31.4 billion forecast in June). Highlights of expected 2018 performance include:

  • A slight decline in the operating margin to 8.1% (down from 8.3% in 2017)
  • An improvement in net margin to 4.7% (up from 4.6% in 2017)
  • A rise in overall revenues to $824 billion (+9.4% on 2017 revenues of $754 billion)
  • A rise in passenger numbers to 4.3 billion (+6.0% on the 4.1 billion passengers in 2017)
  • A rise in cargo carried to 62.5 million tonnes (+4.5% on the 59.9 million tonnes in 2017)
  • Slower growth for both passenger (+6.0% in 2018, +7.5% in 2017) and cargo (+4.5% in 2018, +9.3% in 2017) demand
  • Average net profit per departing passenger of $8.90 (up from $8.45 in 2017)

Strong demand, efficiency and reduced interest payments will help airlines improve net profitability in 2018 despite rising costs. 2018 is expected to be the fourth consecutive year of sustainable profits with a return on invested capital (9.4%) exceeding the industry’s average cost of capital (7.4%).

“These are good times for the global air transport industry. Safety performance is solid. We have a clear strategy that is delivering results on environmental performance. More people than ever are traveling. The demand for air cargo is at its strongest level in over a decade. Employment is growing. More routes are being opened. Airlines are achieving sustainable levels of profitability. It’s still, however, a tough business, and we are being challenged on the cost front by rising fuel, labor and infrastructure expenses,” said Alexandre de Juniac, IATA’s Director General and CEO.

“The industry also faces longer-term challenges. Many of them are in the hands of governments. Aviation is the business of freedom and a catalyst for growth and development. To continue to deliver on our full potential, governments need to raise their game—implementing global standards on security, finding a reasonable level of taxation, delivering smarter regulation and building the cost-efficient infrastructure to accommodate growing demand. The benefits of aviation are compelling—2.7 million direct jobs and critical support for 3.5% of global economic activity. And the industry is ready to partner with governments to reinforce the foundations for global connectivity that are vital to modern life,” said de Juniac.

Performance Drivers in 2018

Passenger: Passenger numbers are expected to increase to 4.3 billion in 2018. Passenger traffic (revenue passenger kilometers or RPKs) is expected to rise 6.0% (slightly down on the 7.5% growth of 2017 but still ahead of the average of the past 10-20 years of 5.5%), which will exceed a capacity expansion (available seat kilometers or ASKs) of 5.7%.This will push up the average load factor to a record 81.4%, helping to drive a 3.0% improvement in yields. Revenues from the passenger business are expected to grow to $581 billion (+9.2% on $532 billion in 2017). Strong performance of the passenger business is supported by expected robust GDP growth of 3.1% (the strongest since 2010).

Cargo : The cargo business continues to benefit from a strong cyclical upturn in volumes, with some recovery in yields. Volumes are expected to grow by 4.5% in 2018 (down from the 9.3% growth of 2017). The boost to cargo volumes in 2017 was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand. This led cargo volumes to grow at twice the pace of the expansion in world trade (4.3%). Cargo yields are expected to improve by 4.0% in 2018 (slower than the 5.0% in 2017). While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate of expansion of world trade in 2018. Cargo revenues will continue to do well in 2018, reaching $59.2 billion (up 8.6% from 2017 revenues of $54.5 billion).

Costs: The biggest challenge to profitability in 2018 is rising costs.

Oil prices are expected to average $60/barrel for Brent Crude in 2018 (up 10.7% from $54.2/barrel in 2017). Jet fuel prices are expected to rise even more quickly to $73.8 per barrel (up 12.5% on $65.6 in 2017). Airlines with low levels of hedging (in the US and China for example) are likely to feel the impact of this increase more immediately than those with higher average hedging ratios (Europe). The fuel bill is expected to be 20.5% of total costs in 2018 (up from 18.8% in 2017).

Labor costs have been accelerating strongly and are now a larger expense item than fuel (30.9% in 2018).

Overall unit costs are expected to grow by 4.3% in 2018 (a significant acceleration on the 1.7% increase in 2017). This will outpace an expected 3.5% increase in unit revenues.

Debt : The industry has used the period of positive cash flows to pay dividends and to reduce debt. The debt to EBITDAR (earnings before interest, tax, depreciation, amortization and rentals) ratio has fallen from 3.7x in 2016 to 3.5x in 2017. It is expected to fall further to 3.4x in 2018. Lower debt means reduced interest payments. Despite the squeeze in operating margins (from 8.3% in 2017 to 8.1% in 2018), the net margin is expected to grow to 4.7% (from 4.6% in 2017) because of lower interest payments. This will see net profits rise to a record $38.4 billion in 2018 (up from $34.5 billion in 2017).

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Swiss Golden

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CIIN, NYSC Partner on Insurance Development

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CIIN Deputy DG; Mrs. Uju Chukwu, CIIN DG; Mr. Tayo Borokini, CIIN Council Member; Mr. Wale Onaolapo, CIIN President, Mrs Funmi Babington-Ashaye, and CIIN Council Members; Sir M.O Oyegunle and Mr. Jide Orimolade during a Press Briefing held by the CIIN President in Lagos.

The Chartered Insurance Institute of Nigeria (CIIN) has initiated a partnership model with the National Youth Service Corps (NYSC) as part of long-term efforts to develop the insurance sector in Nigeria.

Mrs. Funmi Babington-Ashaye, the President and Chairman of Council of the CIIN said in Lagos yesterday that the partnership was part of the Institute’s ‘Catch-Them-Young’ initiative to create more awareness of insurance in the country. She said the Institute has also donated insurance textbooks to schools in 14 states across the country for the purpose of taking insurance education to the grassroots.

The CIIN president explained the Catch Them Young initiative as follows:

“More strategically, we have taken the insurance awareness campaign to the youths, the leaders of tomorrow. Our desire is to catch them young and imbibe in their consciousness the crucial roles insurance plays in human endeavours. As part of this initiative, the Council has developed a roadmap to drive the Institute’s proposed partnership with theNational Youth Service Corps (NYSC). Accordingly, the Institute has established contacts with the national headquarters of the NYSC, the Lagos, Ogun and Oyo state chapters to intimate them of the CIIN’s Catch-Them-Young Initiative. The pilot edition of the programme will kick-off at the Lagos state NYSC Camp during the November 2017 Orientation Exercise which starts today where a career talk will be organised for the benefit of Corps members. To facilitate continuous information dissemination, a CIIN Enquiry and Help Desk will be on ground throughout the duration of the orientation exercise. This initiative, which is designed to help attract young Nigerians into the insurance profession, will be replicated and sustained in other states of the Federation until it achieves a national spread.”

Law Union & Rock Reports N3.5bn Premium in 9 Months

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Harvest of Awards: L-R: Mr. Olayiwola Olabisi, Chief Financial Officer; Mrs. Eyoanwan, Head, Human Capital Management; Mr. Olasupo Sogelola; Executive Director, Technical & Operations; Mr. Jide Orimolade, MD/CEO; Mrs. Olufolake Afolabi, Chief Technical Officer; Mr. Steve Ajudua; Chief Marketing Officer Law Union & Rock Insurance Plc.
Harvest of Awards: L-R: Mr. Olayiwola Olabisi, Chief Financial Officer; Mrs. Eyoanwan, Head, Human Capital Management; Mr. Olasupo Sogelola; Executive Director, Technical & Operations; Mr. Jide Orimolade, MD/CEO; Mrs. Olufolake Afolabi, Chief Technical Officer; Mr. Steve Ajudua; Chief Marketing Officer Law Union & Rock Insurance Plc.

Harvest of Awards:

L-R: Mr. Olayiwola Olabisi, Chief Financial Officer; Mrs. Eyoanwan, Head, Human Capital Management; Mr. Olasupo Sogelola; Executive Director, Technical & Operations; Mr. Jide Orimolade, MD/CEO; Mrs. Olufolake Afolabi, Chief Technical Officer; Mr. Steve Ajudua; Chief Marketing Officer Law Union & Rock Insurance Plc.

Law Union & Rock Insurance Plc has announced gross premium written of N3.5 billion as at September 30, 2017 just as it has paid out over N1.25 billion as claims to deserving clients in the same period.

Mr. Jide Orimolade, Managing Director and Chief Executive of Law Union & Rock Insurance said part of its corporate objective is to create niche for ‘ourselves in the industry. We are not unmindful of the competition which is characterised with price war in the industry, but we believe we could navigate through by differentiation and best service delivery.’

LAW UNION AND ROCK INSURANCE PLC Q3, 2017 PERFORMANCE

Total Assets  Shareholders Fund   Gross Premium Written
 2017 (N’000)  2016 (N’000)  2017 (N’000)  2016 (N’000)  2017 (N’000)  2016 (N’000)
  10,355,252.00   9,228,889.00   6,215,604.52   5,027,265.99   3,531,126.93   3,197,325.04
12% 24% 10%

 

Net Claim Expenses  Underwriting Result  Management Expenses
 2017 (N’000)  2016 (N’000)  2017 (N’000)  2016 (N’000)  2017 (N’000)  2016 (N’000)
  611,058.41   611,235.01       713,510.34     970,484.60   801,807.27   782,483.41
-0.03% -26% 0.02

 

Investment Income   Profit Before Tax  Retained Earning
 2017 (N’000)  2016 (N’000)  2017 (N’000)  2016 (N’000)  2017 (N’000)  2016 (N’000)
  611,862.29   369,402.91   727,869.34   610,412.98   470,563.15 -53,091.17
66%                      19% 786%

Orimolade said the result indicates that the company is on a growth and better path, ‘although we have not reach our goal, but continuous improved result show we are going to get there. We will not relent in this course of getting to that pinnacle. We encourage the media to join us, especially in creating awareness and also marketing insurance. And when you do that you should be fair to keep propagating the company with good service delivery like Law Union where the customers can get best service.’

NITDA Saves N3bn for FG via IT Process

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nitda

The National Information Technology Development Agency (NITDA) has saved the Federal Government the sum of N3 billion on a single cleared IT Project of an Agency through its commitment as the government’s clearinghouse for all IT procurement and services in the public sector.

Amid growing concerns about the mismanagement of huge investment of public funds on IT Projects in MDAs, NITDA has offered a glimmer of hope that the Federal Government shall be getting a handle on wasteful and duplicative IT procurement and services in MDAs.

As an unbiased watchdog of government, the Director General has ensured that there is transparency, accountability, efficiency and effectiveness in the process of obtaining clearance from NITDA targeted at extracting maximum value from MDAs’ investments on IT projects.

President Muhammadu Buhari, GCFR, has called for strict compliance to the IT Project’s Clearance  directive by all government establishments to ensure that governments ICT procurements are transparent, align  with government’s IT  shared  vision and policy, save costs through promotion of shared services, avoid duplication, ensure interoperability of IT systems and improve efficiency across government, enforce the patronage of indigenous companies where capacity exist thus fostering digital economy through effective regulation and local content development as well as uphold the highest standards for service delivery.

The President made this declaration at the opening ceremony of this year’s e-Nigeria International Conference and Exhibition held from Tuesday 7th to Thursday 9th November, 2017. He also used the event to commend the Agency’s efforts at enforcing Federal Government’s directive on ensuring that all ICT projects are cleared before they are implemented.

The National Information Technology Development Agency (NITDA) is an Agency under the Federal Ministry of Communications. The Agency was created in April 2001 to implement the Nigerian Information Technology Policy and coordinate general IT development and regulation in the country. Specifically, Section 6(a & c) of the Act mandates NITDA to create a framework for the planning, research, development, standardization, 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.

Purple Capital Taps $12.5m Funding from Vantage

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Vantage Capital, Africa’s largest mezzanine fund manager, announced yesterday that it has provided $12.5 million of funding to Purple Capital, a prominent Nigerian real estate company and financial service provider.

Purple Capital is the developer of the iconic 6,000m² Maryland Mall, a neighbourhood shopping centre in the Ikeja district of Lagos.
The newly opened Maryland Mall offers one-of-a-kind experiences for adults and children, with over 35,000 visitors experiencing the mall’s varied attractions each week. Entertainment options include one of the only skating rinks in Lagos, a vibrant food court, restaurants and over fifty retail shops.

The centre is home to leading multinational and local brands including Shoprite, Miniso, Uber, Genesis Cinemas, Stanbic IBTC and The Place. Maryland Mall is located on Ikorodu Road, one of the busiest thoroughfares in Lagos, and entices passers-by with one of the largest LED visual display screens in West Africa.
Purple Capital is headquartered in Lagos and has built a high-quality property portfolio, including upmarket residential estates in the Lekki suburb of Lagos.
Warren van der Merwe, Chief Operating Officer of Vantage Capital, said, “The Purple team epitomizes the best of Nigeria’s entrepreneurial spirit with its ability to navigate a demanding operating environment to create market-leading developments. Maryland Mall is one such development, a uniquely inviting family destination for Lagosians of all ages.”
Johnny Jones, Associate Partner at Vantage Capital, added, “Vantage is currently investing over fifty million dollars from its third-generation mezzanine fund in real-estate projects across Sub-Saharan Africa. We have reviewed over fifty real-estate opportunities since we launched our latest mezzanine fund but have only selected four to support. We are impressed with the Purple team’s cost-effective execution and believe their business is an excellent fit for our investment style.”
Laide Agboola, Managing Partner of Purple added, “’We are excited about Vantage Capital’s partnership with Purple on this refinancing and investment transaction which helps us reset, consolidate and gear up for exciting opportunities in the future. It also provides a seal of approval and increased possibilities for growth across our focus areas of financial services and real estate development.”
Obinna Onunkwo, Managing Partner of Purple also added, “Our focus on good corporate governance, high-quality deal origination and execution was a strong attraction for Vantage Capital as an offshore investor. Their investment acts as an enabler to our long-term growth strategy in Africa’s largest economy.”
The Purple investment is Vantage Capital’s sixth transaction in Fund III, a $280 million (R4 billion) fund, with a 55% allocation to countries outside South Africa. Purple Capital represents the 24th transaction executed by Vantage across three generations of mezzanine funds with aggregate capital deployed to date of $277 million (R4 billion).

Vantage was advised by Adepetun Caxton-Martins Agbor & Segun, one of Nigeria’s top commercial law firms known for its finance and cross-border M&A work, and Werksmans a leading South African corporate and commercial law firm. Purple Capital was advised by Bloomfield Law Practice, a ‘practical and hands-on’ Nigerian law firm with expertise in corporate commercial, private equity, real estate and financing matters.

African Start-Ups Shine at Web Summit 2017

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Legazy returned to the 2017 Web Summit after having attempted to purchase a Web Summit conference in 2016 with $1million letter of intent. Legazy founded by Zuko Tisani one of the world’s top 350 entrepreneurs under the age of 26, according to the Kairos Society, arrived in Lisbon with Africa’s largest TMT company Telkom and their executives prepared to purchase a Web Summit conference to be hosted in South Africa for the next 3-years.

The deal went cold when both parties couldn’t come to an agreement on the numbers. Zuko’s relationship with Web Summit began earlier that year when he attended the Rise conference in Hong Kong and with platinum band was treated to Web Summit’s hospitality and had dinner discussions with the founder of Web Summit Paddy Cosgrave and other tech giants Dave McClure from 500 Startups. It was at dinner where the offer of $1million was given to Zuko.
Instead of giving up on the hopes of bringing the tech world to Africa, Legazy pivoted and took the largest African delegation to the tech world. Twenty startups and two of their board of investors, one being Lebo Gunguluza, South African judge on Dragons Den (networth est. $20mil) and Stephen Newton Former CEO Naspers e-Commerce and Google Africa.
Of the twenty startups that exhibited at the Web Summit, most of the South African entrepreneurs were funded by Standard Bank, Africa’s largest bank and major partner of Legazy. Because Zuko sits on the advisory board of the Chamber of Commerce of Lisbon and South Africa so was able to give intimate engagement to all startups from Business Leaders in Lisbon, Incubators, VC’s etc.
The stories that have come from the entrepreneurs selected for the excursion are amazing, a lot of them had left South Africa only for the first time because of the Web Summit sponsorship. Some of the wins involve  upwards of $300,000 in investment (term sheet stage).
Incubation offers to Startup Boot camp London. Partnership with Portuguese bank BNI Banco for one of the Fintechs and valuable connections made for expansion. Startup Lisboa will be incubating a South African startup in February to April 2018.
Legazy continues its pursuit on locking down a major international conference partner for 2018 in South Africa, the market and interest is there to grow the community and improve the ecosystem, from last year’s $1million USD Letter of Intent it seems that the budget is there though too.

Legazy which mainly focuses on sourcing investment-ready startups and getting brokering seed investments from its large pool of investors hopes to be the needed gateway for the world to recognize Africa for its beauty and talent.

Market Statistics: Tuesday, 21st November 2017

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NSE
Market Cap (N’bn)                12,738.2
Market Cap (US$’bn)                   41.6
NSE All-Share Index              36,600.07
Daily Performance % (0.5)
Week Performance % (1.0)
YTD Performance %                  36.2
Daily Volume (Million)                  257.9
Daily Value (N’bn)                      3.3
Daily Value (US$’m)         10.8

 Nigerian Equities Market Closes Negative… NSE ASI down 52bps
The Nigerian equities market closed the day negative as the All Share Index shed 52bps to settle at 36,600.07 points; accordingly, YTD return retreated to 36.2%.

Performance today can be largely attributed to losses in NIGERIAN BREWERIES (-3.3%), ZENITH (-3.0%), and GUARANTY (-1.4%). As a result, market capitalization decreased by N67.0bn to N12.7tn. Nonetheless, activity level improved as volume and value traded inched 23.6% and 34.3% higher to 258.0m units and N3.3bn respectively.

Sector Indices Performance Broadly Bearish
Sector performance was broadly negative as 3 of 5 major indices closed in the red. The Banking index led losers, down 1.2% as investors booked profit in ZENITH (-3.0%) and GUARANTY (-1.4%). The Oil & Gas index trailed, down 0.9% on the back of price depreciation in FORTE (-8.9%).

Similarly, losses in NIGERIAN BREWERIES (-3.3%) and FLOURMILL (-5.9%) dragged the Consumer index 0.7% lower. The Insurance and Industrial Goods indices however closed the day flat.

Market Breadth Weakens
Market breadth (advancers/decliners’ ) – which measures investors’ sentiment, weakened to 0.9x from 1.2x recorded the previous day as 18 stocks advanced against 21 stocks that declined. The best performing stocks were CHAMPION (+9.1%), LINKASSURE (+5.2%) and CUSTODYINS (+4.8%) while FORTE (-8.9%), CAVERTON (-5.3%) and FLOURMILL (-5.0%) were the worst performing stocks. Although we expect year-end rebalancing of by portfolio managers to boost performance in December, market will likely continue to trade sideways in the interim due to absence of fundamental drivers of sentiment post-earnings season.

‘AMCON Deserves Commendation for Supporting IDPs’

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Deputy Governor, Yobe State, His Excellency, Engineer Abubakar Aliyu (standing 5th from left) in a group photograph with some commissioners and senior officials of Yobe State Government and representatives of Asset Management Corporation of Nigeria (AMCON) as well as officials of Education Crisis Response (ECR) during the distribution of AMCON relief materials to Internally Displaced Persons (IDPs) in Yobe State, one of the northeastern states that benefitted in the AMCON intervention…recently.

The Deputy Governor of Yobe State, His Excellency, Engineer Abubakar Aliyu has said a lot still needs to be done in the areas of rehabilitation, reconstruction, resettlement and reintegration of thousands of Internally Displaced Persons (IDPs) in Yobe and other northeastern states that were ravaged by the activities of the Boko Haram activities in the northeast.

Aliyu, who spoke in Yobe at the weekend while commending the kind gesture of the management and staff of Asset Management Corporation of Nigeria (AMCON) who donated scholastic materials to Mainstreamed Learners and Parents Caregivers; starter packs for small scale businesses as well as food items for the affected families in the host communities worth millions of naira also called on other organisations to come to the aide of Yobe and other sister states in the northeast.

He said AMCON’s intervention to IDPs in Yobe came at the time the government of Yobe State under the able leadership of the state governor, His Excellency, Alhaji (Dr.) Ibrahim Gaidam is also doing everything possible to bring an end to the sufferings of the displaced persons in the state.

Aliyu said Yobe State remains perhaps, the most coordinated of all the affected states when it comes to dealing with the challenges of IDPs in the country because the government set up a very powerful committee chaired by his humble self to coordinate every activity that has to do with IDPs in Yobe. For effective coordination and smooth handling of all issues, Engineer Aliyu said the committee, which is further broken down into four sub-committees are responsible for all donations, aides, grants amongst others that arrive the state for onward distribution to the beneficiaries.

He said, “On behalf of the government and people of Yobe State, I welcome you to our state and thank you for the items you have donated to the IDPs in Yobe State. I want to let you know that in Yobe, we are very methodological in handling the issues of IDPs. That was why the governor set up what you can call a one-stop-shop that handles anything IDP in the state because we are dealing with over 300,000 IDPs and 14,000 households that the state government allocated lands for the reconstruction of their houses. The figure is huge and so we need interventions like what you have done because the government alone cannot solve all the problems.

“As we speak, through the hard work and commitment of the state government, we have completed the rebuilding of most of the schools and hospitals. What we encourage donors like AMCON to do is to contact the committee so that we can guide you to channel your donations to areas that are critical. We need AMCON to key into our reconstruction plan for the IDPs, which we have already segmented for easy evaluation. We hope this is not the end of your intervention or assistance to us. I thank you for what you have brought to our IDPs and we believe it would go a long way.”

Earlier in his address, Mr. Hassan Tanko, who represented the Managing Director/Chief Executive Officer, AMCON, Mr. Ahmed Kuru in Yobe told the Deputy Governor that AMCON was moved to assist because of the untold hardship the IDPs were going through due to no fault of theirs.

He said, “Your Excellency, what you are witnessing here today is a clear demonstration of our support to the government and good people of Yobe State. We are concerned by the sufferings of Internally Displaced Persons (IDPs) especially the children and indeed the families that were traumatized and distabilised by insurgence in the northeast, where violent attacks by extremists forced more than 2.2 million people to flee their homes including over one million children who are presently out of school.”

Tanko said AMCON designed the IDP intervention programme for three northeastern states that were worst hit by insurgence. He told the Deputy Governor that the programme was flagged-off in Yola Adamawa State on November 2, where 3000 individuals across seven local government areas of the state benefitted from the relief materials. In Yobe, he stated that the items were meant to go round five local government areas.

Tanko again said, “For us as AMCON, everything that needs to be done must be done to provide succor to these children that are forced out of school. We must all join hands to secure their future though education because that is the best gift you can give a child to secure his or her future. There is also need to support their families. We thank the government and people of Yobe State for accommodating and assisting the IDPs to settle down, we also want to commend the management of USAID-Education Crisis Response (ECR) led by Mr. Ayo Oladini, whom the Management of AMCON selected among all the non-governmental organisations working in the northeast to assist AMCON in the distribution of these relief materials. We thank Almighty God for the peace that is gradually returning in the northeast and pray that as a people, we would not face this sort of crisis again.”

Coscharis, Ford Partner on Life Driving Training in Nigeria

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Ford Motor Company in conjunction with its dealer, Coscharis Motors, hosted members of Riders for Health Nigeria (Riders) on Ford’s Driving Skills for Life (DSFL) training programme. The event took place on November 17, 2017 at the Coscharis Motors head office in Lagos.

The DSFL programme is a global programme aimed at educating drivers about road safety and providing them with safety tips on how to stay safe behind the wheel.

Participants got the opportunity to gain insight on departure angles, brake distance on gravel and the anti-lock braking system (ABS) and how to use other four-wheel drive functions such as traction control, hill control and locking differential. The Ford Figo and Ranger were used during the DSFL training.

“Ford and Coscharis Motors are very pleased to be able to offer Riders this proven road safety tool in the form of the Driving Skills for Life programme and expand our efforts in promoting safe driving. The team at Coscharis Motor’s completed Ford’s DSFL train the trainer programme and it’s through the knowledge and skills transferred to us that we can continue educating Nigerians on road safety,” Abiona Babarinde, General Manager – Marketing and Corporate Communications, at Ford’s distributor, Coscharis Motors.

Riders is an international organisation working to improve the capacity and efficiency of health care delivery systems in Africa by ensuring that health workers have uninterrupted access to reliable transportation especially to marginalised and rural communities.

“We are pleased to be part of the Ford DSFL training programme. We believe that the training will assist with educating our members on road safety, driving techniques, accident prevention and manoeuvres for urban and off-road driving. It’s important to ensure our health workers are safe on the roads when providing much needed medication to communities in rural Nigeria.” said Ajayi Kayode, Country Director for Riders for Health Nigeria.

Early this year, Ford sponsored two Ford Rangers to Riders in Nigeria as part of the organisation’s Project Better World. The vehicles assure Riders deliver medical professionals and supplies to rural areas, support Riders’ fleet of motorcycles and provide more efficient healthcare to communities.

Riders for Health uses over 70 Ford vehicles across six African countries – Nigeria, Zimbabwe, Lesotho, The Gambia, Malawi, and Zambia.