MTN: ‘N50bn to FG is Part Payment on N780bn Fine’

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25/02/2016

MTN Nigeria says the N50 billion it paid to the Federal Government was part payment of the N780 billion fine imposed on it by the Nigerian Communications Commission [NCC] for failing to deactivate 5.2 million non-registered subscribers on its network.

Mr. Funso Aina, Public Relations Manager of MTN Nigeria confirmed the N50 billion as part payment on the fine in a text message response to Business Journal enquiry on the issue last night.

The telecom operator has also withdrawn the legal action it filed against the NCC at a Federal High Court in Lagos.

The CEO of MTN Nigeria, Moolman, said the telecom operator decided to withdraw the case in “renewed steps towards a negotiated settlement and to create a conducive atmosphere for further negotiations.”

The operator said in a statement: “MTN Nigeria has paid N50 billion to the Federal Government as a gesture of good faith and commitment to continued efforts towards an amicable resolution.

This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome. Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties.

Our industry in Nigeria is an incredibly important example of the remarkable progress in ICT, particularly as a much needed catalyst for socio economic growth and development at this time.”

First Bank Issues Profit Warning as Impairments Stunt Earnings

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25/02/2016

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First Bank has issued profit warning on its financials for the year ended December 31, 2015 as impairment charges stunt its earnings in the period under review.

The profit warning was contained in an official statement from FBN Holdings Plc to the Nigerian Stock Exchange [NSE]. The statement read in part:

“Following the preliminary review of FBN Holdings Plc management account for the year ended 31, December, 2015, it is expected that earnings will be materially below that of the prior year.

The reduction in earnings is as a result of the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within our commercial banking business.

This reassessment was driven by the challenging macro-environment, coupled with fiscal and monetary headwinds which have resulted in market reduction in domestic output.

This is a prudent measure being taken while the bank has commenced active remedial action on the specific impaired accounts. Our merchant banking and asset management as well as insurance businesses remain strong and resilient.

We reiterate our 2016 focus on restoring shareholder value by driving improvements in underlying asset quality, cost efficiency, enhancing revenue generation and extracting synergies across the Group, as well as growth through innovation.”

Africa Must Close Insurance Gap to Sustain Economic Growth

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25/02/2016

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Allianz Global Corporate & Specialty (AGCS) CEO in Africa, Delphine Maïdou highlighted opportunities for the corporate and industrial insurance sector in Sub-Saharan Africa at a Risk Management Conference in London on 25 February, 2016.

Delphine, who is also President of the Insurance Institute of South Africa (IISA), spoke about what the region needs to do to close the insurance gap as well as the role of risk management and insurance in infrastructure and economic development.

Dubbed ‘Sub-Saharan Africa: The Next Generation of Emerging Markets’, the seminar was attended by CEOs, CFOs, brokers, risk managers, regulators, policy makers and other influential role players within the risk management and insurance industry across Europe and other parts of the world.

“With growing economies, Sub-Saharan Africa presents a huge potential for business insurance. Insurers and brokers need to work very closely with risk managers, regulators and stakeholders within the region to create awareness about the purpose and value of insurance so more companies, projects and stakeholders can be adequately protected,”said Maïdou.

Below Average Insurance Penetration

Currently, the world’s insurance industry is dominated by developed countries.

The Group of Seven (G7) countries alone account for almost 65% of the world’s insurance premiums even though they cover just over 10% of the world’s population.

However, the total premiums in Africa for both life and non-life insurance amounted to US$71.9 billion in 2012, which translates into a penetration rate of 3.65% well below the global average, which is 6.5%, though it is above the average for emerging markets of 2.65%[i].

Despite lower commodity prices and the slowdown of the Chinese economy, as well as strains in some large emerging economies, the economy in Sub-Saharan Africa is expected to grow by 4% in 2016. Even though higher borrowing costs are weighing heavily on some of the region’s largest economies such as Angola, Nigeria, and South Africa, the zone presents significant potential for infrastructure and economic development through foreign direct investment and public-private partnerships.

“2015 was a very tough year for emerging markets and some countries will remain highly vulnerable to economic shocks and market volatility in 2016,” said Ludovic Subran, Chief Economist at Euler Hermes. “Sub-Saharan African countries will continue to face a trio of challenges: low commodity prices, the Chinese slowdown and the tightening of US monetary policy. These countries also suffer from their own internal pressures such as inflation, weak domestic demand and socio-political tensions.”

In spite of the challenges, the region remains the fastest growing insurance market after emerging Asia, with insurance premium growth of 4.5% to 5% predicted for 2016-17[ii]. However, Maïdou warned that insurance needs to keep pace with investment and economic development:

“Sub-Saharan Africa’s continued growth depends on closing its vast infrastructure and skills gap, which needs innovative credit and investment solutions facilitated by public private partnerships through a clear policy and legal framework. But for these solutions to work, they will require equally appropriate risk management and risk transfer solutions – which essentially means increasing insurance penetration.”

Maïdou points out that local and global brokers and insurers operating in countries that have high insurance penetration such as South Africa, Namibia and Mauritius need to work with their counterparts in other African countries to foster the use of modern insurance and risk management for businesses within those areas. Nigeria is a case in point. Africa’s largest country by Gross Domestic Product (GDP) has a mere 0.6% insurance penetration.

However the country has all the ingredients for a thriving insurance industry because of its vast population of 170 million and an active economy.

“Innovative and agile insurance solutions can help businesses in Nigeria and the rest of Sub-Saharan Africa,” she asserted.

“There are numerous ways to close the protection gap to mitigate business risks such as business interruption, fire and explosion, and political risks to name a few. Both traditional insurance and the new generation of alternative risk transfer solutions can be used to find the right responses to an increasingly complex risk environment.

In essence, this involves educating businesses about these risks and advising them on relevant risk management and insurance solutions, while also ensuring such solutions are accessible in local markets. It is also critical for all players within the industry to do their homework about the regulatory and legal aspects of insurance within each country so they devise relevant and fully compliant solutions.”

UNDP @ 50: ‘World Must Step Up to Beat Poverty by 2030’

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25/02/2016

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Meeting the Sustainable Development Goals (SDGs) is only possible with a broad coalition of leaders from government, civil society, multilaterals and the private sector, said Helen Clark, Administrator of the United Nations Development Programme, (UNDP) on the eve of a major Ministerial Meeting to mark the organisation’s 50th anniversary.

The SDGs are the 17 ambitious goals that set out the world’s development agenda between now and 2030, and include a commitment to eradicate poverty, reduce inequality and spread peace and justice.

“Government leadership is vital for achieving the SDGs, together with partnerships with civil society, the private sector, philanthropy and the multilateral system. Working together, we can achieve our goals of a world which is free of poverty and inequality,” Helen Clark said.

“Using the Sustainable Development Goals as our guide, a world where economies and societies are more inclusive can be built, and the planet can be protected from the worst effects of climate change and other forms of environmental degradation,” she added.

Clark noted that UNDP is well placed to play a critical role in achieving the SDGs after 50 years on the frontlines of global development. In that half-century, UNDP has helped build institutions, increase resilience, and support countries as they implement vital reforms. It also continues to lead the co-ordination of the essential work of the UN system.

“Our work has contributed to major development gains in many countries around the world. As we celebrate our 50th anniversary, the UNDP recommits itself to this task,” Clark said.

To mark the anniversary, more than 80 Ministers from across the world will meet in the United Nations General Assembly in New York on February 24 to chart a course for the future of global development.

Ministers will be involved in high-level debates on how to translate ambitious global commitments – from financing development, eradicating poverty, reducing inequality, addressing climate change and building peace – into concrete action and results. They will share their visions on making the SDGs a reality, building a more prosperous, fair, and inclusive world for all.

Google Shuts Down Online Insurance Business

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25/02/2016

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It appears Google Compare’s grand experiment in online comparison shopping for auto insurance is dead – for now at least.

Insurance Journal has learned that two of Google Compare’s major partners were told that the giant tech firm is shutting down its online shopping comparison undertaking.

One former partner, Compare.com, heard the news not from Google, but from several of its carriers that are partners in Google Compare. Another unnamed partner confirmed it had been told of the pending shutdown. A third major partner described the Google move as “going dark” and that the business is retooling.

A Google spokesman couldn’t be immediately reached for comment.

“It was a bit shocking to hear that they are exiting,” Compare.com CEO, Andrew Rose said.
Rose said he was told it was a global exit, and that Google Compare isn’t just exiting the insurance business but also credit cards, banking products, the mortgage products in the U.S. and the U.K.

Rose said the U.K. Compare operations were also informed of Google’s exit, which he said is perplexing because online comparison shopping is strong in the U.K.

“It’s just interesting to see them throwing in the towel,” he said.
Keith Moore, CEO and President of CoverHound.com – one of Google’s initial platform partners when it launched Google Compare – says Google’s plan is to “go dark” to retool all of its consumer product sites and improve the “customer experience.”
“We think it’s a smart move and something we have been pushing for all along,” Moore said. “We are still engaged with them and still have an active partnership and hope that partnership will continue down the road.”

Moore said there were a few carriers that Google was having challenges with outside of its relationship with CoverHound, and that the decision to pull the site was to address those issues.

“We gave [Google] a lot of guidance on what we thought was best for consumers and some of the carriers directly couldn’t deliver on that and we could,” he said. “The customer experience is everything.”

For now, CoverHound’s contract with Google is still in place.

When down the road CoverHound’s relationship with Google will resume Moore wouldn’t say, just that he considers the partnership to be “on pause.”

He also doesn’t expect Google’s hiatus from insurance will affect CoverHound’s business directly, as the search engine giant’s Google Compare platform only brought in about 10 percent of CoverHound’s business.

“We are in good shape and think that the decision will make us even better from a customer experience standpoint,” Moore said, adding the company has plans to announce other partnerships soon. “I am very optimistic. It’s a good time to be in insurance.”

This comes just over a year after Google made a big splash with news it was getting into the insurance business.

It was made official in March 2015 when the deal between the tech giant and major partners Compare.com and CoverHound was made known to the public.

Google’s announcement included the unveiling of an online comparison tool that listed several major carriers as partners.

Named as partners in the release were carriers, Mercury Insurance and MetLife. Other large carriers subsequently signed on.
Participation in Google Compare was based on a flexible cost-per-acquisition model, but payment wasn’t a factor in ranking or eligibility, according to Google.

Google’s presence caused worry of a massive market disruption, particularly among independent agents. A month before the announcement amid rumors of Google’s entry into the insurance business W.R. Berkley Corp. CEO, William R. Berkley said every agent who sells personal auto coverage should “be afraid, be very afraid.”

Another partner was Insurance Technologies Corp., a software provider.

In its role with Google Compare, ITC provided auto insurance quotes to online consumers through its rating application program interface for its comparative rating system TurboRater, a system already in use by insurance agents.

“Ultimately, I would not be surprised with Google exiting the market. It often seemed like a little bit of a distraction for them,” said Laird Rixford, President of ITC.

Rixford noted the model conflicted with Google’s main source of revenue, which is pay-per-click.

“They were almost cannibalizing that model,” he said.

Some have observed that Google Compare was moving much slower than anticipated.

Brian Sullivan, Editor for Risk Information Inc., has been tracking the progress of Google Compare.

Sullivan said at an industry conference last month that Google Compare has only launched in four states in the nine months since they set out to tackle the U.S. market. They had expected to be in about two dozen states, Sullivan said.

“They were going to X amount of traffic and they had 10 percent of the traffic they thought,” he continued.

He reasoned they were going very slowly because they under-estimated the complexity of personal auto.

Rixford said there’s a lesson in this apparent failure.

“Just being Google does not predicate success,” Rixford said. “They were not the first to try nor will they be the last.”

Rixford said the market for online comparison is fluid and changing, and that “the future market leader is probably not even around yet.”

He added that “U.S. consumers are still enamored with their agents.”

The news comes a week after Citigroup Analyst, Todd Bault’s bold suggestion that Google’s parent, Alphabet Inc., should buy American International Group Inc. to expand further into insurance.

VISA Unveils Secure Payments Plan for Internet of Things

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25/02/2016

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Visa says that it is expanding its Visa Ready program to include Internet of Things (IoT) companies, such as manufacturers of wearables, automobiles, appliances, public transportation services, clothing and almost any other connected device.

Emerging IoT companies will join mobile device manufacturers, including mobile point of sale acceptance (mPOS) providers, mobile NFC enabled device manufacturers and other technology partners in the Visa Ready Program.

The Visa Ready Program gives companies one seamless path to integrate secure payments into their products and services. Visa Ready partners receive access to industry best practices, tools and resources, and Visa’s Digital Enablement Program (VDEP), which includes streamlined access to Visa Token Service (VTS). The Visa Token Service, an innovative security technology, allows secure mobile and digital payments anywhere there is an Internet connection.

The first IoT companies to join the Visa Ready Program will focus on payments for wearables and automobiles. Initial Visa Ready partners include Accenture, Coin, Giesecke & Devrient, Fit Pay, and Samsung, who will work with device manufacturers including Chronos and Pebble, to help embed secure payments in consumer devices and have those devices certified as Visa Ready.

Mobile technology is accelerating the pace of change in the payments industry, helping open up new possibilities for a generation of consumers who increasingly rely on connected devices to manage their money, shop, pay and get paid.

The number of IoT enabled devices is expected to reach 50 billion by 2020 according to Cisco, providing a huge opportunity for secure payments to be a feature in just about any form factor.

“More and more, consumers are relying on smart appliances and connected devices to make their lives easier,” said Jim McCarthy, executive vice president of innovation and strategic partnerships at Visa Inc. “By adding payments to these devices, we are turning virtually any Internet connection into a commerce experience – making secure payments seamless, and ultimately more accessible, to merchants and consumers.”

Visa Ready Program for IoT
The Visa Ready Program is a commercial program designed to provide innovators with a path to help ensure that devices, software and solutions can initiate or accept Visa payments. It also provides a framework for collaboration with Visa, as well as guidance and best practices to access the power of the Visa network.

Mobile point-of-sale acceptance (mPOS) providers, mobile NFC-enabled device manufacturers, and chip and platform providers are already playing a critical role in enabling new ways to pay and benefiting from the Visa Ready Program.

The Visa Ready Program for IoT will also enable device manufacturers to evaluate, develop and potentially adopt new payment methods that are already approved by Visa, and can help financial institutions and merchants drive growth by expanding the use and acceptance of electronic payments globally.

Visa Token Service
As part of the Visa Ready Program, all participants will use the Visa Token Service (VTS) security technology that replaces sensitive payment account information found on payment cards, such as the 16-digit account number, with a unique digital identifier that can be used to process payments without exposing actual account details.

3D Printing in Africa, Middle East Target $1.3bn in 2019

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25/02/2016

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Spending on 3D printing in the Middle East and Africa (MEA) market is set to increase from $0.47 billion in 2015 to reach $1.3 billion by 2019, according to the latest forecasts from International Data Corporation (IDC).

The research firm’s new Semi-annual 3D Printing Spending Guide shows that the spending in the region will increase at a compound annual growth rate (CAGR) of 30.8% over the 2015‒2019 period, outperforming the worldwide growth rate of 26.9%.

IDC expects this high rate of growth to have a transformative effect on how previously mass-produced goods are manufactured, with 3D printing enabling such products to be customized for individual requirements.

While the world’s emerging markets in general will represent a clear growth opportunity, IDC expects the Asia-Pacific region to contribute most to near-term growth, as China – in particular – becomes a leading market for 3D printing hardware and services. Nevertheless, MEA will maintain its position as a frontrunner in this space and its share of global 3D printing spend is expected to grow from 4.3% in 2014 to 5.0% by 2019.

“It is clear that 3D printing offers considerable growth potential in the Middle East and Africa region,” says Martin Kuban, a Senior Research Analyst with IDC Manufacturing Insights.

“The technology will dynamically proliferate across multiple manufacturing industries over the coming years, and we are already seeing significant interest from manufacturers in the GCC countries looking to utilise 3D printing technology. Aside from some of the more obvious applications within the automotive and aerospace industries, we expect to see some innovative and potentially transformative 3D printing deployments among medical suppliers, electronics manufacturers, and tools and components manufacturers.”

IDC’s 3D printing research indicates that the MEA 3D printer market is ready for greater mainstream adoption. And the technologies that enable 3D printing are continuing to develop at a rapid pace and expand in nearly every direction, creating an incredibly broad range of use cases in industries such as healthcare, education, construction, and retail.

“We are also seeing increasing adoption among oil and gas companies in the Middle East as they look to enable the rapid prototyping of parts on their sites, which can often be found in extremely isolated locations,” says Ashwin Venkatchari, IDC’s Senior Program Manager for Imaging Devices and Document Solutions in the Middle East, Africa and Turkey.

“This limits downtime and reduces costs, which is particularly important in this current environment of low oil prices. But cost savings aren’t the only drivers of 3D printing in the region; for example, the healthcare industry is one of the fastest growing users of technology, and the primary driver in this space is the ability of 3D printing to improve the lives of patients.”

The Worldwide Semiannual 3D Printing Spending Guide quantifies opportunities for 3D printers. Spending data is available for more than 20 use cases across 20 industries in eight regions. Data is also available for 3D printing hardware, materials, software, and services.

Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers clearly understand the industry-specific scope and direction of 3D printing expenditure over the next five years.

Nigeria, SA, Kenya Lead M & A Deals in Africa

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25/02/2016

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After several years of steadily increasing M&A activity, African deal making has made the final step to firmly entrench itself into the global marketplace.

Despite political turmoil in many countries, a prolonged downturn in the commodities cycle and related currency risk, Africa’s top economies have maintained investor interest with strong momentum in M&A across the majority of sectors.

This is one of the key findings of the fourth edition of “Deal Drivers Africa”, published by Merger-market in collaboration with Control Risks, the leading business risk consultancy.

Key Findings:
South Africa, Nigeria and Kenya are seen as the most attractive target countries for M & A activity on the continent
100% of respondents believe that cross-border deal making between African countries will continue to increase
Respondents expect most foreign buyers of African companies in 2016 to come from Europe (41%), Asia-Pacific (39%) and North America (16%)
Energy, mining and utilities are expected to generate the most M&A activity in Africa (79%), with industrial & chemicals being viewed as the second busiest sector in the next 12 months (72%)
Regulatory uncertainty, particularly compliance and integrity issues, are highlighted as the principal obstacle to M&A activity in Africa (86%), followed by operational and security risks (77%)
Cyber security is given highest importance by 60% of respondents when doing an M&A deal in Africa

George Nicholls, Senior Managing Director for Southern Africa at Control Risks, comments on the findings:

“M&A activity in Africa is currently driven by many factors: Downturns in more established markets make international buyers look out for new targets; capital is more easily available and high-quality targets are offered at very attractive prices. Despite all the enthusiasm over this positive development, major obstacles remain. Regulatory, operational, security and increasingly cyber risks are major risks that should be considered when undertaking M&A activity on the continent.

“While most actors (88%) acknowledge the fact that external advisers are crucial to the success of a deal, still only 19% use external support for due diligence assessments. Hence, many deals fail at the step of the very initial due diligence, as lack of transparency and local knowledge leads to lack of clarity in the ownership structures.

“Only 9% reach out for help on anti-bribery and corruption programmes. Ignoring or under-estimating these issues can not only lead to failure of a deal, but almost more importantly to serious reputational damage for the buyer.”

U.S. is No. 1 Source of Spam Emails, Down 11.4% in 2O15

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25/02/2016

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According to the latest Kaspersky Lab Security Bulletin, the volume of spam emails in 2015 decreased to 55.28% of overall email traffic, a fall of 11.48% on the previous year. The significant slump in spam emails can be attributed to the increasing popularity of legal advertising platforms on social networks, coupon clipping service and etc.

Among other trends identified in the Kaspersky Lab spam report are the following. Over three quarters (79%) of all emails sent were less than 2kb, which shows a steady decrease in email size for spam campaigns over the past few years. Financial institutions such as banks, payment systems and online shops were attacked most often with phishing emails (34.33%, a rise of 5.59%).

In 2015, cybercriminals continued to send out fake emails from mobile devices and notifications from mobile apps containing malware or advertising messages. New tactics included fraudsters spreading malware in the form of .apk (Android executive files) and .jar (ZIP archives containing a programme in Java).

In addition, cybercriminals masked a mobile encryption Trojan behind a file containing updates for Flash Player. After launching, the malware encrypted images, documents and video files stored on the device with users receiving a message telling them to pay a fee in order to decrypt the files.

“The increased use of mobile devices in our everyday life to exchange messages and data, as well as access and control bank accounts, has also resulted in increased exploitation opportunities for cybercriminals. Mobile malware and fraudulent spam is becoming more popular and efforts to dupe victims are becoming more sophisticated year on year, with the emergence of apps that can be used by cybercriminals both directly (for sending out spam, including malicious spam) and indirectly (via phishing emails). Mobile device users therefore need to be on their guard and remain vigilant, as cybercriminal activities in this area are only likely to increase, along with our reliance on devices”, warns Daria Loseva, Spam Analysis Expert at Kaspersky Lab.

The US remained the biggest source of spam (15.2%), with second place taken by Russia (6.15%) and China making way for Vietnam in third spot (6.12%). Germany was the biggest victim with 19.06% of spam attacks – a 9.84% increase on 2014, followed by Brazil at 7.64% which posted a 4.09% increase and moved up from sixth place in 2014. Russia moved up to third place from eighth, an increase of 3.06% to 6.03% of all spam attacks in 2015.

Hot spam topics of the year:
“Nigerian” fraud used the Ukrainian political situation, the Syrian civil war, the election in Nigeria and the earthquake in Nepal to exploit the kindness and empathy of recipients with believable email content. These emails contained content calling for material support for a person in need.

Although the Olympic games in Brazil has yet to take place, fraudsters have already started to exploit the event, sending emails announcing false lottery wins and asking the recipient to fill in a form with their personal details.

In these attacks, emails with pdf attachments, pictures and other graphical elements were designed to fool the spam filters.

Worldwide Smartphone Sales Grew 9.7% in 4qtr 2015

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25/02/2016

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Global sales of smartphones to end users totaled 403 million units in the fourth quarter of 2015, a 9.7 percent increase over the same period in 2014, according to Gartner.

However, this was their slowest growth rate since 2008. In 2015 as a whole, smartphone sales reached 1.4 billion units, an increase of 14.4 percent from 2014.

“Low-cost smartphones in emerging markets, and strong demand for premium smartphones, continued to be the driving factors,” said Anshul Gupta, Research Director at Gartner.

“An aggressive pricing from local and Chinese brands in the midrange and entry-level segments of emerging markets led to consumers upgrading more quickly to affordable smartphones.”

Gupta said that 85 percent of users in the emerging Asia/Pacific market are replacing their current midrange phone with the same category of phone. In addition, currency devaluations against the U.S. dollar in many emerging markets are putting further margin pressure on many vendors that import devices.

Current market conditions are prompting some vendors to consider setting up manufacturing operations in India and Indonesia to avoid being hit by future unfavorable currency devaluations and high import taxes.

In the fourth quarter of 2015, Samsung and Huawei were the only two top-five smartphone vendors to increase their sales to end users. Apple suffered its first decline in sales of smartphones – iPhone sales were down 4.4 percent.

Although Samsung was the No.1 vendor, Gartner analysts said the company faces challenges. “For Samsung to stop falling sales of premium smartphones, it needs to introduce new flagship smartphones that can compete with iPhones and stop the churn to iOS devices,” said Gupta.

With an increase in sales of 53 percent in the fourth quarter of 2015, Huawei achieved the best performance year over year. Huawei’s increased brand visibility overseas, and its decision to sell almost only smartphones, gave it a higher average selling price in 2015.

For total sales of smartphones in 2015, Samsung maintained the No. 1 position, but its market share declined by 2.2 percentage points. In 2015, Apple sold 225.9 million iPhones, to achieve a market share of almost 16 percent. Huawei’s smartphone sales approached 104 million units, up 53 percent year over year.

In terms of smartphone operating system (OS) market, Android increased 16.6 percent in the fourth quarter of 2015, to account for 80.7 percent of the global total. “Android benefited from continued demand for affordable smartphones and from the slowdown of iOS units in the premium market in the fourth quarter of 2015,” said Roberta Cozza, Research Director at Gartner.

In the premium segment, despite Apple’s slower year-over-year fourth-quarter sales, Apple narrowed the market share gap with Samsung in 2015 as a whole.

Buhari May Sack CBN Gov, Emefiele, over Naira Crisis

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24/02/2016

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President Muhammadu Buhari may sack Mr. Godwin Emefiele, Governor, Central Bank of Nigeria [CBN] over the continued slide in the value of the Naira against major global currencies.

Just last week, Buhari sacked the Director of Budget over lingering embarrassing errors in the 2016 federal budget sent to the National Assembly.

A top chieftain of the ruling APC told Business Journal in Abuja that the party hierarchy was becoming uncomfortable with the failure of Emefiele to halt the sliding value of the Naira, which he said was making the party unpopular amongst Nigerians.

“I can tell you in confidence that top leaders of APC are becoming worried over the Naira crisis, but more importantly, the clear inability of Emefiele to stop the negative trend which is making our party very unpopular across the country. Already, some party stalwarts have begun to discuss the issue of replacing Emefiele as CBN governor if the situation does not improve as quickly as possible.”

The APC official added that Emefiele’s situation is not helped by the fact that he was appointed by former president, Goodluck Jonathan.

The official said: “Our experience so far with those appointed by Jonathan is not really palatable. Majority of them are working for the APC government to fail and that was why the president sacked about 26 of them last week. For Emefiele, we are still exploring the best way out.”

NSE Renews Onyema’s Contract for a 2nd Five-year Term

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24/02/2016

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The Nigerian Stock Exchange [NSE] has approved the renewal of contract of employment for Mr. Oscar N. Onyema for another term of five years as Chief Executive Officer of The Exchange effective immediately.

Onyema has served as the CEO of the Exchange since April 2011 and his initial five years employment contract expires on March 31, 2016.

Commenting on the renewal, President, National Council of NSE, Mr Aigboje Aig-Imokhuede said “Mr. Onyema’s tenure as CEO of the NSE is marked by outstanding achievements. The Council is confident that he can continue The Exchange’s trajectory of transformation, innovation and marketplace recognition by implementing its business strategies which he has been instrumental in developing. The leadership qualities that he has demonstrated in his first term as CEO, in the face of such intense and challenging operating environment, have been exemplary. The Council believes that his vision and passion will ensure the Exchange remains a force to be reckoned with in Africa and beyond.”

Speaking on his contract renewal, Mr. Onyema said:
“I am honoured to remain with The Nigerian Stock Exchange and to continue to lead our dedicated staff as we strive to achieve the Exchange’s vision. I am grateful to the Council for the opportunity to continue such an important work. While there is still much to be accomplished, the support shown by the capital market community has been inspirational, and I look forward to working with the entire eco-system to meet our objectives. ”

On assumption of the role of CEO in April 2011, Onyema developed the strategic plan to transform the Exchange into a globally competitive brand by stabilising and professionalising the Exchange.

He led the execution of the Exchange’s transformation strategy which resulted in over 365% increase in surplus, and 40% increase in NSE Group balance sheet size for the period. He has transitioned this strategy into a five year growth plan, 2015 to 2019 which will see the Exchange increase the number of new listings across five (5) asset classes; increase order flow in the five (5) asset classes; and operate a fair and orderly market based on just and equitable principles.

In recognition of his contributions to Nigeria’s economic development and transformation of Africa’s capital markets he was elected President of African Securities Exchanges Association (ASEA) in November 2014, demonstrating recognition and acceptance within the African region; and Chairman of West African Capital Markets Integration Council (WACMIC) for 2013 -2015, demonstrating sub-regional pull and influence.

More so, Onyema has represented the NSE on several boards and Government bodies including PENCOM, FMDQ OTC Plc, Central Securities Clearing System Plc (CSCS), Nigerian Capital Market Master Plan Implementation Council (CAMMIC), World Economic Forum (WEF) Global Agenda Council on Future of Financing and Capital, amongst others.

African Capital Alliance Acquires 49% of Continental Re

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24/02/2016

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Private equity firm, African Capital Alliance (ACA) announced in a release published on February 15, 2016 it has acquired a 49% stake in the reinsurance firm, Continental Reinsurance Plc that operates in 44 African countries.

The amount of the transaction carried out via Capital Alliance Private Equity IV (CAPE IV), an ACA-sponsored fund was not disclosed.

The transaction was possible through the dilution of the shares of Saham Finances, the insurance subsidiary of the Moroccan Saham Group, in Continental Re.

Subsequent to the dilution which was approved by the regulatory authorities, Saham Finances’ shares in the reinsurer dropped to 51% from 100%.

“This is an extremely positive move for our company and we are very pleased to have shareholders who share our determination to realise our vision for Africa”, said the Managing Director of Continental Re, Femi Oyetunji.

“The new structure will position Continental-Re favorably to bolster its strategic objectives and strengthen what it has achieved over the past few years in terms of our pan-African foothold, expansionary plans and market positioning as the largest private pan-African reinsurer, outside of South Africa”, he added.

Established in 1985, Continental Re is one of Africa’s main reinsurers. The firm, listed on the Nigerian Stock Exchange [NSE] since 2007, indeed supports more than 200 insurance companies operating in the various sub-regions of the continent and has offices in six countries (Nigeria, Kenya, Cameroon, Cote d’Ivoire, Tunisia and South Africa).

ACA focuses on sub-Saharan Africa. Since its establishment in 1997, the firm launched four private equity funds and a real estate fund that raised more than a billion dollars.

To date, ACA has made 40 investments, mainly in the oil and gas, financial, energy and consumption goods sectors.

Bloomberg Africa Business and Economic Summit Explores Growth

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24/02/2016

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As shifting global economic conditions place further pressure on revenue and investment streams in Africa, Bloomberg will convene leading newsmakers and game changers from across sub-Saharan Africa, CEOs of global corporations, influential investors and government leaders this week in Cape Town, for the Bloomberg Africa Business and Economic Summit.

The event will be held at the Westin Hotel in Cape Town on Tuesday 23 and Wednesday 24 February and will gather more than 40 speakers to discuss the opportunities that lie at the point where technology, gender equality, political transparency and global partnerships meet.

Topics include financial transparency, the opportunities and challenges of doing business in Africa, capital access, Africa’s energy needs and infrastructure challenges and the future of Africa’s relationship with China, among others.

“The goal of the Bloomberg Africa Business and Economic Summit is to foster meaningful discussion and debate about the opportunities and challenges for investment and growth in Africa, for both foreign investors and African companies,” says Matthew Winkler, Editor-in-Chief Emeritus, Bloomberg News and co-host of the Summit.

Speakers include:
Tembinkosi Bonakele, Commissioner, Competition Commission, South Africa
Mike Brown, Chief Executive, Nedbank Group
Alan Knott-Craig, Founder and Chief Executive Officer, Project Isizwe
Karen Daniel, Chief Financial Officer, Black & Veatch
Bob Diamond, Chief Executive Office and Founding Partner, Atlas Merchant Capital
Dana Hyde, Chief Executive Officer, Millennium Challenge Corporation
Jay Ireland, President and Chief Executive Officer, GE Africa
Wendy Luhabe, Economic Activist and Social Entrepreneur
Ben Magara, Chief Executive Officer, Lonmin, South Africa/ UK
Phuti Mahanyele, Executive Chairperson, Sigma Capital
Joseph Mucheru, Cabinet Secretary, Ministry of Information, Communications and Technology, Republic of Kenya
Patrick O’Sullivan, Chairman, Old Mutual

To open the programme, a dinner will be hosted by Peter T. Grauer, Chairman Bloomberg L.P. and Matthew Winkler, Editor-in-Chief Emeritus, Bloomberg News. Jeff Radebe, Minister in the Presidency, Republic of South Africa and Patricia de Lille, Executive Mayor, City of Cape Town will welcome guests and the evening will feature an interview with Dr. Donald Kaberuka, Former President, African Development Bank and Senior Advisor, TPG/ Satya.

The Summit is sponsored by GE and The Coca-Cola Company.

The event aims to build on the discussions and outcomes of the 2014 U.S.-Africa Business Forum which was held in Washington D.C. and convened nearly 50 heads of state and government and more than 300 global CEOs, demonstrating the enormous interest in the growing African markets for U.S. investors and companies.

Bloomberg Philanthropies and the U.S. Department of Commerce have announced they will host the second U.S. –Africa Business Forum in New York during the 71st UN General Assembly meeting in September 2016.

Vodafone Plans First-to-the Market 5G by 2020

By

Business Journal

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24/02/2016

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In order to be one of the first to provide the 5G technology to its customers, the British telecom firm, Vodafone signed a partnership agreement with the infrastructure firm, Ericsson. Other partners are associated to the agreement which allows Vodafone to take part into Ericsson’s research.

It will also allow the firm to prepare its telecom networks to the transition towards this new mobile standard expected by 2020.

In a release, Vodafone says its collaboration with Ericsson regarding 5G will consist in defining the standards of the industry, set technical guidelines, and establish products roadmaps.

Vodafone and other partners will evaluate which 5G technologies will be presented as the industry’s standards; the company will test hardware and software in its UK-based Innovation Labs; conduct trials on Vodafone’s radio and core networks in selected global markets; test and evaluate a wide range of 5G technologies and services, and prioritise the benefits of 5G that can be brought to market by 2020.

Satisfied of the future collaboration with Ericsson, Vodafone Group CTO, Johan Wilbergh said:
“The telecom industry is still establishing what technology will offer the benefits we expect from 5G, therefore it is important to establish dedicated research programmes with these leading global companies. We expect 5G to radically enhance the speed, resilience and intelligence of mobile networks, enabling Vodafone customers to remain confidently connected as their usage of mobile data increases.”

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