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Category: Business

  • FG, IFAD Distribute Agricultural Inputs To Rice, Cassava Farmers

    The Federal Government and International Fund for Agricultural Development – Value Chain Development Programme (FG/IFAD- VCDP), on Tuesday, began distribution of agricultural inputs to rice and cassava farmers in Nasarawa.

    Dr Eunice Adgidzi, state coordination of VCDP in Nasarawa, at the flag off on Tuesday in Lafia, said the distribution of the

    agricultural inputs was in furtherance of the VCDP commitment to strengthening rice and cassava value chains in the state.

    Adgidzi added that the exercise would also help to improve the livelihood of smallholder rice and cassava farmers on a sustainable basis in Nasarawa.

    She listed the items to be distributed to include 92 irrigation pumps, 40 solar-powered knapsack sprayers, four power tillers and eight tricycles.

    Others are eight cassava processing equipment, including grinding machines, communal fryers, hydraulic pressers, cassava chipping machine as well as stainless steel rice steam per boilers.

    The coordinator noted that the programme had sustained its intervention through the distribution of inputs in the state since July 2020.

    She commended Gov. Abdullahi Sule for his support to agriculture, adding that the commitment was gradually making Nasarawa a hub for agricultural excellence.

    Adgidzi urged the farmers to make judicious use of the items to boost agricultural production.

    “While VCDP has done its part, farmers must also do their part to enable us to achieve the desired success.

    “We are all counting on you to effectively utilise these equipment in order to boost production and processing of rice and cassava in the state,” she said.

    In his remarks, the state Commissioner for Agriculture and Rural Development, Umar Dan-Akano, lauded the VCDP’s intervention in the state.

    Dan-Akano, represented by the Director, Agriculture Engineering Services, Solomon Umbundaga, said the programme had greatly improved the livelihood of smallholder farmers in the state.

    He encouraged the benefiting farmers to continue to leverage the opportunity to boost food production in the state.

    Also speaking at the event, Mr Emmanuel Alanana, Programme Manager, Nasarawa Agricultural Development Programme (NADP),

    said that Nasarawa government had always prioritised the agricultural sector.

    He urged farmers to always take advantage of the various programmes to enhance production.

    Alanana maintained that Nasarawa State used to be a leading producer in cassava and rice, and called for its sustenance.

    He charged the beneficiaries of the item to make good use of them.

    “We have the land and the population and there is no need for us to go hungry in Nasarawa State.

    ” We shouldn’t rely only on rain-fed farming given our potentials for dry season crop production.

    “So, I appeal to all farmers in the state to take advantage of available opportunities, especially with the passion of the present administration in agriculture,” he said.

    Some of the beneficiaries, Haladu Abubakar and Margaret Ogah, thanked the VCDP for the intervention, saying it would go a long way to boasting their farm produce.

  • LCs’ Rejection Pushes Nigerian Businesses To Black Market

    LCs’ Rejection Pushes Nigerian Businesses To Black Market

    Hope for cheaper goods are further from sight as local businessmen now have to source foreign exchange (forex) from the parallel market, otherwise known as black market to meet with their business transaction abroad, after the rejection of their Letter of Credits (LCs).

    The implication is that resorting to the black market will naturally push up the cost of doing business which will naturally be passed on to consumers, thus further pushing up already high prices of goods.

    Over two weeks after the Central Bank of Nigeria (CBN) promised to clear over $10 billion foreign exchange debts owed to the Deposit Money Bank, the apex bank has yet to do so according to findings.

    unconfirmed reports say foreign counterparts of Nigerian businessmen are now rejecting their Letter of Credit (LC), thereby refusing to make business transactions effective.
    A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a facility (financial assistance that is essentially a loan).

    But following the forex crisis that has bedeviled the country’s financial system; foreign suppliers are now demanding cash transfers in place of LCs as faith in the Nigerian banking system wanes owing to the dollar shortage.
    It will be recalled that, the Central Bank of Nigeria (CBN) has been unable to reduce the backlog of forex owed airlines and other partners due to shortage of forex.

    The Central Bank of Nigeria (CBN) sold what is called forward contracts to several Nigerian businesses with the promise of dollars at an agreed price in future. The banks opened LCs on the back of the forward contracts, which were then used to buy goods from the foreign suppliers.
    Apparently scared by the growing backlog and with no assurance of when it will be cleared, correspondent banks are pulling the plugs on local Nigerian banks.
    A correspondent bank acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank.
    Correspondent banks are most likely to be used by domestic banks to execute transactions that either originate or are completed in other countries. Domestic banks generally use correspondent banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad.
    Bankers say the CBN’s failure to clear the dollar backlog has put them in a very tight FX liquidity position and has forced them to suspend several transactions including school fees and Personal Travel Allowance applications.

  • Meter Asset Provider: Kaduna Electric Begins Refund To Customers

    Kaduna Electric has announced that it has since begun refunding customers who bought meters under the Meter Asset Provider (MAP) scheme.

    The company disclosed this in a statement issued in Kaduna and signed by Head of Corporate Communication, Abdulazeez Abdullahi. 

    “Management is delighted to inform its esteemed customers that it has since commenced the repayment of the cost of meters to customers who purchased their meters through the MAP Scheme,” the statement said.

    The statement said the repayment for the cost of the meters is in installments through energy token whenever a customer makes a purchase in line with the directives of the Nigerian Electricity Regulatory Commission (NERC). Kaduna Electric said the repayment would be completed in 36 months from the date of commencement of first installment.

    Earlier this month, NERC reviewed the costs of both Single Phase and Three Phase meters to N88,123 and N154, 622 (VAT inclusive) respectively. 

    With the new development, Kaduna Electric advised its customers to hurry and purchase their meters through its MAP vendors. Customers can visit any of the company’s offices across its franchise for further enquiries.

  • NDIC Gets ISO Certifications For Excellent Service Delivery

    The MSECB, a leading international provider of Audit and Certification Services has granted the Nigeria Deposit Insurance Corporation (NDIC) three ISO certifications.

    The certifications are: Information Security Management System ISO/IEC 27001:2013 (on how organisations manage and protect their information assets so that they remain safe and secure, using this robust framework); IT Service Management System ISO/IEC 20000-1:2011 (on how  to ensure effective and resilient services in today’s changing service delivery environment); and Business Continuity Management System, and ISO 22301(on the requirements for a management system to protect against, reduce the likelihood of, and ensure businesses recover from disruptive incidents).

    Director, Communication & Public Affairs, Bashir A. Nuhu, in a statement Tuesday evening, noted that the certifications followed a rigorous and independent audit exercise confirming that the Corporation is in compliance with the requirements for the three standards.

    The ISO is an independent, non-governmental international organization that brings together experts from around the world to develop, voluntary, consensus-based, market relevant international standards that support innovation and provide solutions to global challenges.

    The certification is a three-year, multi-layered process that begins with an initial certification in the first year, followed by 2 surveillance audits over the course of 2 years.

    In line with its vision to be one of the best deposit insurers in the world, the Corporation will continue to offer excellent services consistent with international standards and best practices to ensure that the current achievement is duly sustained.

  • Despite Challenges Telcos Meeting KPIs—NCC

    The latest data from the Nigerian Communications Commission (NCC) shows that the four mobile network operators, MTN, Globacom, Airtel, and 9mobile, are meeting their Quality of Service (QoS) Key Performance Indicators (KPIs).

    According to the Nationwide QoS data released by the Commission, the telcos met their KPIs between July 2022 and June 2023.

    The operators’ performances are measured by the regulator based on parameters such as Call Setup Success Rate (CSSR), Drop Call Rate (DCR), and Traffic Channel Congestion (TCH CONG).

    According to NCC, these QoS standards ensure that consumers continue to have access to high-quality telecommunications services by setting basic minimum quality levels for all operators.

    Based on the latest report, all the mobile operators crossed the threshold of 98 per cent call setup success rate in the 12-month review period.

    The Call Setup Success Rate (CSSR) is calculated by taking the number of unblocked call attempts divided by the total number of call attempts.

    In terms of drop call rate (DCR), which is fixed at 1 per cent or less, all the operators performed well as they recorded less than 1 per cent drop calls in the period, according to NCC’s record.

    A dropped call is a call that is prematurely terminated before being released normally by either the caller or the called party.

    In terms of Traffic Channel Congestion, (Standalone Dedicated Control Channel Congestion SDCCH), all the operators also met the KPI as they all recorded less than 2 per cent congestion within the period.

    The regulator’s parameter in this regard is that the congestion rate for the networks should be equal to or less than 2 per cent.

    The Traffic Control Channel Congestion Rate is the probability of failure to access a traffic channel during call setup.

    The technical result of operators’ quality of service may, however, be different from the reality based on subscribers’ experience in the period covered by the report and even now.

    The President of the National Association of Telecoms Subscribers (NATCOMS), Mr. Deolu Ogunbajo disagreed with the regulator.

    According to him, NCC is looking at the quality of service from the technical aspect and not from the subscribers’ angle.

    “The KPIs are measured technically and are far from the reality of what the subscribers are experiencing. We disagree with NCC on this. There are lots of complaints on Dropped calls, and even the call setup success rate is nothing to write home about.

    “There are times you want to call and the call is not just connecting, the call setup rate is poor, all is not well in terms of quality of service as the report suggests” he said.

    Based on the huge number of mobile subscriptions in the country, the minute percentage of errors allowed the operators to cover a large number of subscribers facing the quality of service challenge.

  • Bears Trend As Equity Market Sheds N242bn

    The domestic equity market on Monday opened the week bearish, shedding N242 billion as profit taking activities persisted during the day.

    Market capitalisation of listed equities declined by 0.66 per cent to N36.605 trillion from N36.847 trillion reported on Friday.

    The NGX All Share Index also depreciated by 441.95 basis points to 66882.64 points from 67324.59 points recorded the previous day.

    A review of the transactions during the day showed that Ikeja Hotel led the gainers table in percentage terms, gaining 10 per cent to close at N2.75 per share. JohnHolt followed with a gain of 9.70 per cent to close at N1.81 per unit.

    Cornerstones Insurance increased by 9.49 per cent to close at N1.50 per share, Regal insurance gained 8.57 per cent to close at N0.38 per unit, Tantalizer up by 6.67 per cent to close at N0.32 per unit.

    On the contrary, Caverton Business Solutions topped losers chart, dropping by 9.87 per cent to close at N1.37 per share, AccessCorp trailed with 9.86 per cent to close at N15.55 per share, Oando Plc dipped by 9.70 per cent to close at N10.70 per unit, TIP fell by 9.65 per cent to close at N1.03 per unit, RTBriscoe dropped by N0.38 per unit.

    Volume of trades declined as investors traded 408.194 million shares valued at N5.442 billion in 7707 deals against 1.028 billion shares worth N4.354 billion exchanged hands the previous day in 6370 deals.

    Transactions in the shares of AccessCorp led market activities with 113.391 million shares valued at N1.781 billion, United Bank for Africa followed with account of 59.615 million shares worth N1.049 billion, Unity Bank traded 27.790 million shares valued at N28.426 million, Universal Insurance exchanged 17.572 million shares cost N3.901 million, Transnational Corporation of Nigeria exchanged 16.789 million shares cost N103.697 million.

  • NNPCL, NCDMB Sign Cost Reduction, Efficiency Pact With IOCs

    The Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Content Development Monitoring Board have signed a Memorandum of Understanding with major oil companies to reduce cost, drive efficiency in Nigeria’s oil and gas industry.

    The agreement, which was signed on Monday, would enable the implementation of the industry framework which was developed by the IJC to achieve an optimal contracting cycle of not more than 180 working days.

    Key benefits of the framework in the MoU include a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively compared with the current best effort performance of 327, 333, and 185 working days respectively.

    The framework is in line with the Nigerian Upstream Cost Optimization Program (NUCOP) and in consonance with President Bola Tinubu’s directive for NNPC Ltd and NCDMB to engage the industry with the objective of improving the performance of the petroleum industry.

    An optimized contracting cycle is expected to improve the ease of doing business, reduce cost, and drive efficiency which will eventually translate to production growth, increased revenues, and ultimately improved profitability.

    The MOU is one of the many collaborative solutions between the major industry players that will contribute significantly to the double-digit economic growth rate agenda of the Government and generate tremendous value for all the stakeholders including the investors, the companies, the community, and the country at large.

    The move is in line with one of the key mandates of NNPC Ltd as the National Energy Company in article 53 (7) of the Petroleum Industry Act (PIA) to conduct its affairs on a commercial basis in a profitable and efficient manner.

    The mandate for efficiency requires that NNPC Ltd is committed to working with its partners in ensuring key processes, procedures, and timelines that drive major business activities such as contracting are structured in a manner that engenders efficiency and drives profitability.

    NNPC Vice President, Upstream, Oritsemeyiwa Eyesan, signed on behalf of the National Oil Company while the Executive Secretary NCDMB, Simbi Wabote signed on behalf of the Board.

  • Concrete Road Will Drive Cement Price To N9000 —Manufacturers

    Cement manufacturers under the umbrella of the Cement Producers Association of Nigeria have warned that the price of the product may further rise following plans by the federal government to introduce the use of concrete for road construction.

    Fielding questions from journalists at its AGM, the Chairman of BUA group owners of Bua Cement said cement prices will drop from N5000 to N3500 by January 2024 when its new plants finally begin operation.

    The Minister of Works Dave Umahi since his appointment has been an advocate of the use of concrete for road construction, as according to him, it lasts longer than roads constructed with asphalt.

    In a statement jointly signed by PrinceDavid Iweta and ChiefReagan Ufomba, the National Chairman and National Secretary respectively, the Association warned that the price of cement may rise to as N9000 from the present ₦5000.

    However, the Cement manufacturers warned that there would be dire consequences if the supply end is not addressed properly, noting that if it is not addressed the price of cement would not come down.

    The Association therefore called on the government to emphasise road designs that allow both cement technology and asphalt pavement to run concurrently.

    “Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr President if the government does not take proactive steps.

    “While we commend the Honourable Minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now. To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike.

    “We also call on the Honourable Minister of Works to lay more emphasis on the design criteria of roads that allow both cement technology and Asphalt pavement to run concurrently, in turn, will provide ample time for a smooth transition that allows contractors to invest in commensurate and requisite equipment and retooling. We must also as a nation regulate static and dynamic load traffic by introducing weighbridges at access points on our highways.”

    While urging the present administration to conclude the backward integration policy started by late President Yar’adua administration, the Cement manufacturers noted that availability and affordability of the product cannot be achieved if the government fails to break the chain of monopoly and favouritisms.

    It, therefore, called on President Bola Tinubu’s government to permanently solve this perennial cement price hike problem by expanding participation in the sector with companies who have verifiable evidence of local investment, including greenfield licenses and quarrying.

  • Conoil Grows Earnings To N145.8bn In 2022

    Conoil Plc has reported gross earnings of N145.8 billion for the 2022 financial year.

    The amount represents an increase of 5.3 per cent against N138.2 billion in the corresponding period of 2021.

    The major oil marketer in a statement at the weekend on its audited results for the year ending December 31, 2022, said despite the massive developmental challenges in the country and the tough operating environment, its Profit Before Tax (PBT) grew by 60.1 per cent to N6.13 billion in 2022 from N3.83 billion in 2021, while Profit After Tax (PAT) increased by 60.1 per cent from N3.08 billion to N4.96 billion in the same period.

    With the significant improvement in profitability in the petroleum-marketing subsector, Conoil’s earnings per share rose to N7.14, representing a 60.8 percent increase over the N4.44 earned in 2021.

    The company also recorded an increase of 22 per cent in net from N53.98 billion to N65.91 billion.

    Thrilled by the impressive all-round performance, shareholders at the company’s 53rd Annual General Meeting at the weekend, unanimously approved the proposed final dividend payout of N1.734 billion, which translates to N2.50 per share, for the 2022 financial year.

    Conoil had assured the shareholders of its commitment to continue to deliver strong and sustainable performance that would enhance returns to its shareholders.

    The Chairman, Conoil Plc, Dr. Mike Adenuga (jnr), in his address to the shareholders at the meeting, said that company remained motivated in creating excellent value for its shareholders, while also ensuring that its share price remained on the rise.

    He said, “We have shown a consistent ability to improve our operating margin and grow our volumes across all our locations. We have a great brand portfolio with energized and talented personnel with a reach pan-Nigerian. Our overriding goal is to ensure the continued delivery of excellent services to our customers and ultimately ensuring that our shareholders are rewarded.

    “Conoil Plc plans to consolidate on the progress made in the previous years to deliver a strong and sustainable performance that enhances returns to our shareholders.

    “Regardless of the odds, the company is marching forward in the year with confidence and optimism, as it strategically and continuingly positions its business to take advantage of key opportunities,” Adenuga assured the shareholders.

    Looking ahead, the Conoil Chairman noted that while there might be challenges posed by the rapidly changing geopolitical and socio-economic environment, Conoil would, however, concentrate on the strategies that have given it the greatest dividend.

    He said the Federal Government has stated critical reforms, such as the elimination of the petrol subsidy and reforms in the foreign exchange market.

     Towards this end, he said Conoil would concentrate on the strategies that have given it the greatest dividend. “The Company will grow its earnings, improve profitability and asset quality and deliver competitive returns to its esteemed shareholders.”

  • Access Holdings’ Half-Year Profit Hits N940bn

    Access Holdings’ net profit for the first half of the year rose by about 52 per cent compared to the corresponding period of last year as its half-year revenue reached N900 billion mark for the first time ever.

    Gross earnings for the period climbed by 58.9 per cent to N940 billion, putting the financial services group on track to dwarf the N1.4 trillion reported for full year 2022, when the current year winds down.

    Access Bank anchored the growth on fair value and foreign exchange gain, which expanded by approximately 50 per cent to N192 billion.

    That followed a major revamp of the Nigerian foreign exchange system towards the end of the second quarter, which triggered a reasonable drop in the value of the naira against the dollar but opened the door for the lender to gain big after converting its financial assets denominated in the foreign currency to the naira.

    At 13.5 per cent, improvement in net interest income was paltry as the cash the corporation paid savers as an incentive for holding their deposits ate away at most of the interest it generated during the period, which originally had surged by as much as 63 per cent.

    That expense alone consumed N382.6 billion of the entire revenue.
    Taxable profit advanced to N167.6 billion from N97.8 billion a year earlier, while profit for the period rose 52.4 per cent to N135.4 billion.

    Ironically, Access Holdings’ post-tax profit lagged those of its other peers who come behind it among Nigeria’s five biggest banks, including UBA, Zenith, GTCO and FBN Holdings in indication of the group’s current inability to tap the vast potentiality of its assets to boost earnings.

    Its total assets stood at N20.8 trillion in June in a big leap from N15 trillion at the end of last year, following a banking acquisition in Angola and a number of similar deals in the pipeline with Standard Chartered Bank in Cameroon, Gambia, Sierra Leone, Tanzania and also Angola.

    Access Holdings declared an interim dividend of N0.30 per share on Saturday equivalent to a payout of N10.7 billion, compared to the N0.20 per share it announced a year earlier.

    The stock has yielded 103 per cent since the beginning of the year.