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Dangote Cement HY’19 Revenue Falls to N467.7bn

The revenue generated by Dangote Cement Plc in the first six months of this year depreciated by 3.05 percent, details of the company’s financial statements for the period ended June 30, 2019 have revealed.

In the results briefly analysed by Business Post, the cement manufacturer generated the sum of N467.7 billion in the period under consideration compared with the N482.4 billion raked in the same period of last year.

This impacted on the gross profit posted by the market leader in the cement industry, which stood at N274.6 billion in H1 2019 against N284.8 billion in H1 2018.

According to the company, the production cost of sales in H1 2019 dropped to N193.2 billion from N197.6 billion, indicating a decline by 2.23 percent.

In the period being reviewed, the administrative expenses incurred by Dangote Cement slightly increased to N25.0 billion from N24.7 billion, while the selling and distribution expenses rose to N80.3 billion from N62.2 billion, with the other income slowing to N1.2 billion from N2.5 billion.

The financial statements further revealed that the finance costs of the firm stood at N19.6 billion in H1 2019 against N21.5 billion, while the finance income ended June 2019 at N4.6 billion in contrast to N6.6 billion in June 2018.

Dangote Cement said its before tax reduced to N155.5 billion in H1 2019 from N185.5 billion, while the profit after tax appreciated to N119.2 billion from N113.2 billion.

This was because of the lower tax paid by the company; N36.3 billion in the first half of this year versus N72.4 billion in the first half of last year.

Source: businesspost

UACN Property Declares Post-Tax Loss of N1.3bn in HY’19

For UACN Property Development Company Plc, its half year financial statements showed that the company is still struggling to make things right and it might take time for investors to see the impact of efforts being made by management and the board.

The financial statements for the half year running from January to June indicated that the company made a post tax loss of N1.3 billion as against a loss after tax of N1.8 billion recorded in H1 2018.

However, the revenue made from contract with customers as at June 30, 2019 was N1.5 billion, an increase from N1.2 billion realized in H1 2018.

A higher cost of sales of N1.2 billion was posted by the property division of UAC Nigeria in H1 2019 compared with N1.13 billion in H1 2018, leaving the firm with a gross profit of N331.5 million, an increase from the N66.4 million calculated in the first half of 2018.

Selling and distribution expenses was N47.5 million, higher than N39.2 million recorded in H1 2018, while the administrative expenses was lower than H1 2018 as the company recorded a N243.3 million overhead from N293.7 million.

The company said it recorded an operating loss N45.5 million in the period under review compared with N227.7 million operating profit made in H1 2018 as the finance income and costs for H1 2019 were N637,000 and N1.6 billion respectively as against N8.9 million and N2.2 billion recorded in H1 2018 apiece.

The company recorded a total loss of N1.03 billion before tax in H1 2019 as against a loss before tax of N1.53 billion recorded in the previous H1. A higher tax of N121 million was paid in the first six months of this year compared with the  N80 million paid at the end of six months in 2018.

Source: businesspost

Highest paid CEOs in Nigeria earn N5.4bn as salaries in 2018

Uneasy lies the head that wears the crown and so does the compensation that goes with it. The Chief Executive Officers (CEOs) of some of the largest publicly quoted companies on the Nigerian Stock Exchange (NSE) earned a whopping N5.459 billion in 2018, a 26.4% rise from the N4.317 billion earned in 2017.

These companies, 20 in number, span across the various sectors of the Nigerian economy from banking to oil and gas, cement, food & beverage, brewery, and telecoms.

The NSE has about 169 quoted companies with a market capitalization of about N13.69 trillion. These companies make up over 60% of the total recapitalization in the stock exchange.

Nairametrics will review the compensation of some of the notable earners and compare this with their performance.

 

Highest Earning CEOs in 2018
Highest Earning CEOs in 2018

Highest Earner:  MTN’s Fredy Moolman topped the chart with a total executive compensation (comps) of N571 million for the year ended December 2018. His salary is up by a whopping 89.1% from the N302 million earned in 2017. Moolman took over as MTN chief in 2015 following the devastating $1 billion fine imposed on the telecommunication giants for SIM card infractions by the Nigerian government.

Soon after his appointment in 2015 MTN recorded its first loss in over 20 years, posting a $108 million loss in 2016. Since then, the company has returned to profitability, posting an astonishing N98 billion in half-year profits for MTN Nigerian alone this year. The company also concluded payment of the fines this year.

Under the guidance of Moolman, MTN also survived several challenges in the last four years, particularly the crisis with the Central Bank of Nigeria (CBN) and Ministry of Justice over the $8.1 billion dividend repatriation.

Major accomplishments

  • Completed payment of fines
  • Record profitability, and revenue growth. Up 79% YoY 2018.
  • Helped MTN’s pivot into data, increasing data revenue to over $500 million annually.
  • The successful listing of MTN on the Nigerian Stock Exchange
  • Successful Bond raising

In the spotlight: There is no gainsaying that the erudite Oando Group CEO, Wale Tinubu, is one of the most controversial CEOs on the Nigerian corporate scene. JAT, as he is popularly called earned a whopping N568 million in 2018, a 67% increase from the N340 million he earned a year earlier.  Tinubu is now the highest-earning indigenous CEO among NSE quoted companies.

In terms of profitability, Oando group’s profits had increased by 113.8% from N13.4 billion in 2017 to N28.7 billion in 2018. Despite this impressive turnaround in the company’s fortunes, he remains in the spotlight over his current tussle with Security and Exchange Commission (SEC) which had asked him to resign as the firm CEO.

Although Oando has failed to live up to expectations of stakeholders in the oil and gas industry who had expected the company to transform into a dominant player in both the upstream and downstream sectors of the industry, Tinubu deserves credit for helping the company to avoid an imminent bankruptcy in the wake of the 2014  global oil price crash. Shareholders of Oando are still reeling from a massive loss of market value following the crash and will have to manage a couple of more years without dividend payment.

Major Accomplishments

  • Grew profits by 114% from N13.4 billion to N28.7 billion.
  • Oversaw the negotiations of restructuring of loans of over N250 billion.
  • Successfully spun off key operating assets raising cash to pay down some debts
  • Restructured the company and allowing smaller entities to function as profit centers.
  • Avoiding bankruptcy and possible liquidation following the 2014 oil crisis.

Least Earner: Surprisingly, one of the richest men in Nigeria and one of the only CEOs and co-founders of a major corporation in Nigeria is the least earner on our list.

Herbert Wigwe of Access Bank earned just N85 million in 2018, unchanged from 2017.

Despite the flat growth in his personal compensations, Wigwe helped the bank grow its profits from N53.6 billion to N94.9 billion in 2018, representing a 77% growth.

Key Accomplishments

  • Successful merger with Diamond Bank Plc, making Access Bank the largest bank in Nigerian by total assets
  • Seamless integration between Diamond Bank and Access Bank operations, a difficult task during post-merger activities.
  • Led the bank through the recession and keep it profitable over the years.

Foreign Legion: Nigeria’s corporate landscape is largely led by foreigners who are brought in for their experience and expertise. They mostly dominate the consumer goods sector where their Nigerian counterparts have largely failed.

  • While MTN’s Moolman tops the list, he is closely followed by Guinness Nigeria CEO, Baker Magunda. Uganda- born Magunda earned a whopping N461 million in executive compensation in 2018, a 148% rise from the N186 million earned a year earlier.
  • Guinness has gone through a rough patch of late, raking in losses amidst stiff competition and change in taste of younger alcohol drinkers. However, he helped return the company to profitability in 2018.
  • Lafarge Wapco has had a tumultuous few years. Their share price has fallen from about N100 to under N10 earlier this year, lowest in about 5 years. However, since the spin-off of their loss-making South African Entity, they have had some respite. Nevertheless, Michel Puchercos, its CEO earned about N312 million up 21% from the year before.
  • Unilever’s Yaw Nsarkoh, a Ghanaian, earned N330 million in 2018 up by 50.3% when compared to the N220 million earned a year earlier. Unilever has struggled through the bad years of the recession but has since seen its profits rise to N9.1 billion in 2018.
  • Julius Berger has had it rough under President  Muhammadu Buhari but seems to have turned the corner. Last year it reported a profit of N6.1 billion up from N2.5 billion in 2017. The turnaround was led by Wolfgang Goetsch who retired in 2018. Dr. Lars Richter took over in October 2018. Between him and Wolfgang, the company incurred compensations of N319 million.
  • Nestle is one of the most profitable company in Nigeria and has been a consistent performer. Its Mexican CEO, Mauricio Alarcon, earned N210 million in 2018, up by 23.8% from N170 million the previous year.
  • Modest by most standards, especially if you consider how well run the company is.
  • Nestle profits rose 27.5% to N43 billion in 2018.

Nigerian Behemoth: We can’t end this article without mentioning Nigerian owned largest company by market capitalization, Dangote Cement, owned by Africa’s richest man, Aliko Dangote.

Dangote Cement is one of the most profitable companies in Nigeria and on the continent.

  • Engr. Joseph Makoju was made the substantive CEO in April 2019 after he was appointed to the role albeit in acting capacity in October 2018.
  • He earned N429 million as CEO during the year.
  •  Makoju is a veteran of the cement industry and has featured in executive capacity for over two decades.

Source: nairametrics

US to establish West African Trade Hub in Nigeria

Representatives of the US government say plans are underway to establish the West African Trade Hub (WATH) in Lagos and Abuja, Nigeria.

This is in a bid to support the bilateral trade between Nigeria and the United States.

Grace Adeyemo, director of the Nigeria-American Chamber of Commerce (NACC), said this at a conference for Prosper Africa, an initiative of the US government targeted at “creating an enabling environment for foreign and direct investment” in African countries.

Adeyemo expressed optimism about the economic prospects of the President Donald Trump-backed trade initiative, which, according to her, prompted the decision to move the trade hub into Nigeria.

She, however, noted that Nigerian entrepreneurs who seek access to opportunities that would accrue from the initiative through the hub would need to meet the regulatory standards required to break into the US/global market.

According to her, the NACC would also offer advice to prospective exporters who would like to take advantage of the tariff-free market on the US-Nigeria bilateral trade agreement.

“US representatives have told us that the West African Trade hub would now move into Nigeria to be situated in Abuja and Lagos. This is so that we can address our challenges and have the hub serve as an overseer reciprocatory for all we’re going to be doing in the US,” she said.

“It will be launched anytime soon. It has always been in Ghana. US government is willing to support a partnership between US investors and Africa. Nigeria can latch onto that but we need to get it right first. We need to try to grow our businesses and add value to them.”

WHAT IS THE WEST AFRICA TRADE AND INVESTMENT HUB?

WATH is a one-stop shop organization backed and funded by the United States Agency for International Development (USAID) to increase the value and volume of West Africa’s exports by addressing challenges in intra-regional and export-oriented products.

Apart from synergizing with local regulatory agencies and policymakers to influence the business environment and attract investors, it is also targeted at promoting the two-way trade between Africa and the US under the African Growth and Opportunity Act (AGOA).

AGOA is a US policy that accords duty-free treatments to virtually all products that are exported to the US by beneficiary sub-Sahara African countries. Acclaimed as the cornerstone of US trade policy with Africa, it is aimed at facilitating the export of over 6,000 goods with no tariff.

WHAT IS THE PROSPER AFRICA INITIATIVE?

Prosper Africa, a trade initiative launched by the Trump’s administration, is one aimed at synchronizing the efforts of the US government agencies to facilitate more deals between the US and African businesses and address trade/investment barriers.

Earl Gast, executive vice president of programs at Creative Associates International, said the end-result of the initiative would create more jobs for Nigerians. He said it would significantly grow the economies of both countries and improve the export capacity of Nigerian businesses.

“With Africa’s prosperity should come the US’ prosperity. We’re looking at how we can marry up the private sectors of both countries and, in the context of Nigeria, partner with the US capital; knowhow; and exports,” he said.

“Economies would grow, jobs would be created through private sector development. Nigeria would export into the region, through AGOA strategy, and to the US. We’re also looking at US exports that might help grow companies in Nigeria so that they can take advantage of the US market.”

On her part, Florie Liser, CEO of the Corporate Council on Africa (CCA), said the initiative would support US firms that intend on investing in Africa and develop the value of Nigerian products to enable the private sector benefit substantially from the value chain.

“Now Prosper Africa is focused on incentivizing and facilitating US investments into Africa in key sectors, whatever they may be. Agro-business is one of them. But there are others: health, ICT, infrastructure and places where the US government can bring value in terms of products and services,” she said.

“The reason that Africa accounts for only 3 percent of world trade today, notwithstanding that they have so many resources they sell the world, is because they are always on the lowest end of every value chain. You ship raw products while somebody else processes it into something that has more value.

“As long as that stays that way, Africa wouldn’t be able to benefit much from global trade. Why shouldn’t Africa ship its value-added products instead of raw products? The focus of the initiative is going to be on the investment into productive capacity that adds value.”

Source: thecable

Nigeria’s external imbalance widens on increasing offshore borrowings

Nigeria’s ability to weather the storm from external shocks or sudden deterioration in economic conditions is waning as the country’s increasing appetite for foreign borrowings continues to outpace accretion to external reserves.

Since the 2014 collapse in oil prices that caused the spread between the Federal Government’s actual and projected revenues to widen, the country has resorted to tapping debt from the international market (offshore) to fund its planned expenditure and this has caused external buffers to thin.

A country’s external buffer is the difference between external reserves and total foreign debt (borrowings). Put differently, in the event of a downtrend in oil prices and foreign portfolio outflows, the external buffer shows the extent to which the countries could withstand such pressures.

For Africa’s largest economy, external debts have almost tripled and despite improvements in foreign exchange reserves, the country’s external buffer has declined in the last six years as the upsurge in offshore debt during the period weakened the economy’s shock absorber.

The country’s defence against external shocks to the economy has weakened by a Cumulative Annual Growth Rate (CAGR or constant annual growth) of 7.24 percent since 2014 owing to increase in foreign debt of 23.59 percent (CAGR), while reserves accretion grew by a CAGR of 5.48 percent.

External buffer has declined since 2017 where the cushion broke a downward trend and grew to $19.86bn. The growth in 2017 was on the back of a 50 percent increase in external reserves as Brent bounced back from the 2016 price fall.

 

However, since buffer rose 38 percent in 2017, it has steadily declined by 14 percent to a current amount of $17bn, the second least recorded in the last six years and only $2.57bn higher than when Nigeria entered recession in 2016.

“The data reflects that the Nigerian economy still remains vulnerable to external shocks, particularly downturn in global oil price,” said Gbolahan Ologunro, equity analyst at Lagos-based CSL Stockbrokers. “Notwithstanding, there is still some sort of headroom for urgent fiscal measures to avert the impending crisis.”

One of such measures, he said, is fiscal consolidation to improve revenue and reduce government reliance on borrowings.

According to the International Monetary Fund (IMF), a country’s foreign reserves are those external assets that are readily available to and controlled by a country’s monetary authorities. They comprise foreign currencies, other assets denominated in foreign currencies, gold reserves, special drawing rights (SDRs) and IMF reserve positions that can be used in directing the finances of international payments imbalances or for indirect regulation of the magnitude of such imbalances via intervention in foreign exchange markets in order to affect the exchange rate of the country’s currency.

Nigeria’s foreign reserves stand at $45 billion in the month of July while external debt stood around $28 billion as at the first quarter of 2019, according to data from the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO), respectively.

A $28 billion external debt would mean the country only has about $17 billion from which it would settle its import bills and probably intervene in sustaining the naira at its current price of N360/$1 in the foreign exchange market.

Analysts are of the view that a fall in crude oil prices which accounts for about 84 percent of the country’s foreign earnings, and a reversal in capital flows, could mount pressure on the CBN’s firepower in stabilising the economy.

The government’s inability to generate as much revenue to finance its project has lured it to cheap foreign debt in order to avoid crowding out the private sector in domestic debt market.

“If anything happens negatively to crude oil price, we might be forced to devalue and the value of the foreign exchange debt becomes a big burden,” said an analyst in a leading investment banking firm.

“The end result is that the integrity of the naira which the apex bank had hoped to protect would worsen,” the person explained.

Nigeria’s external reserves have been growing steadily since 2017 but foreign debt has leaped. External debt soared in 2017 following the global oil crisis, caused a devaluation of the naira and pushed the country into a recession. Nigeria’s external borrowing rose 65 percent in 2017.

Although the rate at which Nigeria increased foreign debt has slowed from 34 percent in 2018 to 11 percent so far in 2019, the DMO announced earlier in the year that it would increase borrowing from external sources as strategy to balance its overall debt stock.

Some economists are of the view that countries of the world can borrow to spend on social welfare, public sector wages and capital expenditure (investments in buildings, roads, public facilities) in order to grow their economy.

However, for Africa’s most populous country, the argument does not “hold water” as increasing debt profile has failed to reflect in economic growth.

Within a five-year period, Nigeria has grown its total debt profile by 116.9 percent to fund its recurrent and capital expenditure in its budget without this borrowed money translating into a corresponding increase in economic growth as GDP has averaged a 2 percent growth.

Source: BY MICHAEL ANI & SEGUN ADAMS

Nigeria Dominates Africa’s Most Inspiring Businesses’ Ranking

A list identifying and celebrating Africa’s most inspiring businesses is made of up of 97 Nigerian firms, which accounted for 27 per cent of the total, the highest among countries surveyed in the region.

The second edition of the ‘Companies to Inspire Africa’ report, which was launched in Lagos yesterday, was published by the London Stock Exchange Group with support from PwC and other partners.

Some of the Nigerian companies listed in the report included: Renmoney, Tizeti, Paystack, Olori Cosmetics, BudgIT Foundation, among others.

Country Senior Partner at PwC Nigeria, Uyi Akpata, said PwC was honoured and excited to partner with the LSE to identify companies on the continent who, despite difficult business climates, continue to thrive and deliver consistent growth.

“We reiterate our support to private companies and helping them create value,” Akpata said.

Co-Head Emerging Markets at LSE, Ibukun Adebayo, said the LSE compiled the list to put a spotlight on Africa’s private sector successes, present the listed companies additional investment opportunities and facilitate partnerships and collaborations.

 

Also, according to the LSE’s Chief Executive, David Schwimmer, “We publish this report as it is our belief that these firms, and high-growth firms like them, are crucial to the future of the African economy.”

Adebayo, noted that the firms listed in the first edition of the report have already started to see significant progress, pursuing IPOs, issuing bonds and expanding across borders.

British Deputy High Commissioner to Nigeria, Harriet Thompson, said the UK was committed to the success of the Nigerian – and in extension African – economy, thus its endorsement of the report.

The report was first announced in January, but has just been launched in Lagos.

There are 360 companies from 32 different African countries on the list. The companies boast an average compound annual growth rate of 46 percent. On average, each firm employs over 350 people, with an average compound annual employee growth rate of 25 percent.’

 

The list of companies cuts across several sectors. Customer Services, Industry and Agriculture were the three biggest ones, accounting for over 50 percent of the companies featured. Technology and Telecoms, and Financial Services together represent over 25 percent of firms, while Healthcare & Education and Renewable Energy also feature strongly.

About 23 per cent of the senior executives of the companies featured were female, a near doubling from 12 percent in the first edition.

The event was attended by the Ogun State Governor, Dapo Abiodun; Chief Executive of the Nigerian Stock Exchange, Oscar Onyema; former Minister of Industry, Trade and Investment, Okechukwu Enelamah and Executive Secretary at the Nigerian Investment Promotion Commission, Yewande Sadiku.

In his keynote speech, Governor Abiodun highlighted the significance of the report, noting that it will stimulate more investment into Nigeria and Africa.

Source: This Day Live

How Diaspora Bonds Work and Benefits

Sometimes in 2017, Nigeria’s Former Finance Minister, Kemi Adeosun revealed the Federal Governments (FG) plans to launch a $300 million diaspora bond bid in March 2017. I knew a lot of people were confused. And, in order to help esteemed Nairametrics‘ readers, I took out time to develop this article. So what is a diaspora bond and how can you invest?

A diaspora bond is basically a government debt that is targeted but not limited to the nationals of the country that are living abroad. The idea is based on a presumption that because of emotional ties to their country of origin, expatriates may find investing in such products worthwhile, especially if they are financing development projects like infrastructure.

According to World Bank Migration and Remittances Fact-sheet 2016, 247 million people, or 3.4% of the world population live outside their country of birth. In 2015, $581.6 billion was remitted, of that figure, $431.6 billion went to developing countries. In the same year, Nigeria was the highest remittance receiving country in Africa and 6th highest in the world, receiving $20.8 billion. In 2018, the figure jumped to $25 billion, to remain Africa’s highest.

NIGERIA REMITTANCE 2015, 2016, 2017, 2018

Nigeria’s Senior Special Assistant (SSA) on Foreign Affairs and Diaspora said that in 2016 Nigeria recorded a massive increase receiving a total of $35 billion in remittances.

Most of the remittances are informal, meant for family and friends. Diaspora bonds provide the government with an opportunity to tap into the wealth of their diaspora community to fund national level development. In other words, governments can tap into capital markets beyond foreign direct investment, foreign investors and conventional loans to finance development.

This is particularly important during periods of economic downturns when other lenders may be reluctant. Policy makers, however, should not assume that this is a quick and easy way to raise capital. Many countries have launched bids but with varying levels of success. Israel and India have been the most successful till date, although both set up bonds for different purposes and in different ways.

ISRAEL INDIA DIASPORA BOND

Israel has issued diaspora bonds by the Development Corporation for Israel (DCI) since 1951 raising a total of $32.4 billion as at 2015. The bond was set up to finance development projects in various industries including energy and transport. On the other hand, India set up its bond to support their balance of payments and it has done this three times Indian Development Bonds in 1991 ($1.6 billion), Resurgent Indian Bonds in 1998 ($4.2 billion) and Indian Millennium Deposits in 2000 ($5.5) raising a total of $11.3 billion.

The bond issued by the DCI was listed with the Securities and Exchange Commission (SEC) and thus, it was open to foreign nationals as well as the Diaspora of Israeli origin. Whereas India’s bonds were issued strictly to the Diaspora of Indian origin and were not listed in the SEC.

Israel-Diaspora Bonds were fixed, floating rate bonds with maturity periods ranging from one to twenty years and bullet repayment, with large financial incentives including making its interest rate slightly higher than US Treasury bills.

To make the bonds more accessible, the DCI set up retail agencies in the US and other countries. India, on the other hand, chose fixed rate bonds with five-year maturity and a bullet maturity. As financial incentives, the bonds were two percent higher than US Treasury bills and were exempt from Indian income and wealth tax.

The problem with Diaspora bonds

However, African countries like Ethiopia have had limited success. Its first bid the Millennium Corporate bid to finance a hydro-electric dam in 2008 was unsuccessful because take-up was low. Experts have opined that lack of trust of repayment were the key issues that deterred potential buyers.

[ALSO READ: A legal view of corporate taxation in Nigeria]

THE NIGERIAN STORY

Against the backdrop of falling oil prices and the loss of value of the naira, the diaspora bond bid may be a good alternative for Nigeria to raise much-needed funds to finance the huge infrastructure deficit. However, foreign investors exited the Nigerian market in 2015 because of unclear economic policies and lack of trust in the government financial management.

So the question is how well will the FG communicate with the Nigerian diaspora community to build enough trust so that people can invest in the bond? To tackle some of these issues, the FG has said the Debt Management Office will manage the bond.

BENEFITS

Using the March 2017 $300 million diaspora bond bid to illustrate the benefits derivable from Diaspora Bonds. While enumerating the returns on the bonds, the SSA on Foreign Affairs and Diaspora Mrs Abike Dabiri noted that the bonds will have at least five to ten-year maturity and annual dividends between five to eight percent, which is higher than bank deposit which is within two percent.

As further financial incentives the Director General of the DMO, Dr Abraham Nwankwo said that the bonds are exempt from tax, could be used as collateral from borrowing from banks and discounts on the FG housing scheme.

AfDB Wants Nigeria Industry Players to Explore AIF for Investment

The Senior Director, Nigeria Country Department in African Development Bank (AfDB), Mr. Ebrima Fall, on Tuesday advised industry players to use the opportunities of the 2019 Africa Investment Forum (AIF) to unlock investment potential in the continent.

Faal made the call at the 2nd Nigeria Roadshow of the AIF.

AIF, scheduled for November 11 and November 13 in South Africa, aims to change the face of investment in Africa by bringing together members with vested interest in Africa’s growth and development.

He urged industry players and policy makers to maximise opportunities that the forum would provide to connect, engage and and close high-impact deals.

According to Faal, last year’s edition of AIF held in South Africa convened over 2,000 participants representing 87 countries including eight heads of governments.

“Deals worth a total of $46.9 billion were discussed with 49 deals valued at $38.7 billion secured.

“These figures are not just impressive for an attempt at something that has never been done on the continent, but phenomenal.

“These figures evince the untapped business opportunities in Africa, stemming from deals that cut across all sectors reinforcing the strategic vision of the bank as enshrined in its ‘High 5’s’.

“They are to light up and power Africa, feed Africa, industrialise Africa and improve the quality of life for the people of Africa,” Faal said.

Further recounting the experience at the 2018 edition of AIF, Faal said that Nigeria had five deals worth $7 billion out of the 63 boardroom deals presented at the forum.

“This represents 14.9 per cent of the total deals accounted for the continent, and 43 per cent of the deals accounted for the region; we can do better.

“This year, it is paramount that we not only maintain our place as a pacesetter, but also collectively strive to improve on the quality and quantity of deals closed.

“Africa Investment Forum offers a unique opportunity to exhaust numerous options for sound, innovative and economically viable growth for the continent and, especially for Nigeria.

“Even with impressive CBN reserve of about $45 billion and a pension fund of about N8 trillion, Nigeria will need a considerable amount of private finance to bridge its cumulative infrastructural needs of about $3 trillion by 2024.

“The time for bridging this gap is now,” Faal said. (NAN)

NSE market cap gains N1.38trn on Airtel listing

The Nigerian equity market for the second time this week closed higher as the NSE All share index, the major market performance indicator rose by 0.10 per cent on the back of Airtel Africa Listing.

However, market breadth closed negative, with 8 gainers as against 20 losers.

Consequently, the All Share Index (ASI) increased by 30.15 basis points, representing a growth of 0.10 per cent to close at 29,318.02 index points from 29,287.87 recorded the previous day.

However, the Market Capitalization gained N1.38 trillion, accounting for a growth of 10.68 per cent to closed at N14.288 trillion from N12.909 trillion recorded the previous day.

Meanwhile, a turnover of 294.6 million shares exchanged in 4,033 deals was recorded in the day’s trading.

The premium sub-sector was the most active (measured by turnover volume); with 94.26 million shares exchanged by investors in 1,442 deals.

Volume in the sub-sector was largely driven by the activities in the shares of Zenith Bank Plc and FBNH Plc.

Insurance sub-sector boosted by the activities in the shares of Cornerstone Insurance Plc and Wapic Insurance Plc followed with a turnover of 86.3 million shares in 130 deals.

Further analysis of the day’s trading showed that Cadbury Nigeria Plc topped the gainers’ table with 4.37 per cent to close at N11.95 per share while Japaul Oil Plc followed with 4.35 per cent to close at 24 kobo per share and Dangote Flour Plc with a gain of 1.75 per cent to close at N17.40 per share.

On the flip side, GSK Plc led the losers’ chart with a drop of 9.78 per cent to close at N8.30 per share. Courtville Business Solution Plc followed with a loss of 8.70 per cent to close at 21 kobo per share while ETI Plc dropped by 8.65 per cent to close at N9.50 per share.

Source: NewTelegraph

Nigeria attracted $7bn deals from African Investment Forum — AfDB

Nigeria accounted for $7bn of the $38.7bn inflows that were secured for the African continent at the maiden edition of the African Investment Forum, which held in South Africa in November 2018, the African Development Bank has said.

The Senior Country Director for Nigeria at AfDB, Mr Ebrima Faal, disclosed this in Abuja on Tuesday at a roadshow to promote the second edition of the forum coming up in South Africa in November.

He disclosed that the AfDB would be increasing its average investment in Africa from about $600m every year to about $1bn per annum in the next three years.

Faal said that transactions at the forum that were designated for Nigeria accounted for 14.9 per cent of the deals that were closed at the investment market, which the bank conceived to expose bankable projects on the continent to investors from across the globe.

He said, “The Africa Investment Forum aims to change the face of investment in Africa by bringing together members with a vested interest in Africa’s growth and development through business transformation.

“It is a multi-stakeholder and multi-disciplinary collaborative platform for international business and social impact investors looking to invest on the continent. It is a highly-transactional marketplace dedicated to advancing projects to bankable stages, raising capital, and accelerating the financial closure of deals.

 

“Sufficient to say now that it convened over 2,000 participants representing 87 countries, including eight heads of governments in 2018. Deals worth a total of $46.9bn were discussed with 49 deals valued at $38.7bn secured.”

The AfDB boss added, “At the 2018 Africa Investment Forum, West Africa accounted for 36 per cent of the deals that were closed. Nineteen projects worth $16.1bn were presented, of which 16 projects valued at $13.1bn secured investment. Our region grossed the highest value in deals, followed by the host region accounting for 22.7 per cent.

“Nigeria was very visible. Out of the 63 boardroom deals presented at the forum, Nigeria had five deals worth $7bn. This represents 14.9 per cent of the total deals accounted for the continent, and 43 per cent of the deals accounted for the region; we can do better.

“This year, it is paramount that we not only maintain our place as a pacesetter but also collectively strive to improve on the quality and quantity of deals closed.”

Faal said that the Africa Investment Forum offered a unique opportunity to exhaust numerous options for sound, innovative and economically viable growth for the continent and especially for Nigeria.

According to him, even with gross international reserves of about $45bn and a pension fund of about N8tn, Nigeria will need a considerable amount of private finance to bridge its cumulative infrastructural needs of about $3tn by 2024.

 

He added that Africa continued to demonstrate economic resilience with an expected Gross Domestic Product growth of four per cent in 2019, signifying growth above expectation.

Faal said that the signing of the African Continental Free Trade Agreement by President Muhammadu Buhari had now made Africa the largest market in the world in terms of value and numbers.

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