My Blog

Category: Business

  • 5kg cooking gas price decreases 6.71% in June- NBS

    The average retail price for refilling a 5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) decreased by 6.71% on a month-on-month basis from N4,360.69 recorded in May 2023 to N4,068.26 in June 2023, the National Bureau of Statistics (NBS) has said.

    The National Bureau of Statistics (NBS), in its Liquefied Petroleum Gas (Cooking Gas) Price Watch for June 2023 report posted on its website, showed that on a year-on-year basis, this decreased by 3.56% from N4, 218.38 in June 2022.

    On state profile analysis, Kwara recorded the highest average price for refilling a 5kg cooking gas with N4, 750.00, followed by Niger with N4,691.16, and Zamfara with N4,683.33.

    On the other hand, Ondo recorded the lowest price with N3,287.86, followed by Ekiti and Nasarawa with N3,288.46 and N3,364.62 respectively.

    In addition, analysis by zone showed that the North-Central recorded the highest average retail price for refilling a 5kg cooking gas with N4,421.97, followed by the North-West with N4,260.30, while the South-West recorded the lowest with N3,709.16. 

  • Subsidy Removal/FX Reforms: Harder times await Nigerians, PwC predicts

    A new report by Pricewaterhouse Coopers Nigeria (PwC) says there are likely to be more difficulties for Nigerians due to the removal of fuel subsidy and floating of the foreign exchange market by the federal government.

    In its Nigeria Economic Outlook report for August 2023, the professional services conglomerate stated that Nigeria’s business environment would be tough as a result of higher costs of operation and lower revenue as the impact of fuel subsidy removal and floating of the forex market takes a toll on consumer spending.

    “Consumer spending may be adversely impacted by the elevated inflation rate (food 25.3% and core inflation 20.3% rates) and fuel price (140% increase after subsidy removal), the report said.

    “Business revenues may decline in the short-term mainly due to direct impact input costs and reduction in disposable incomes.

    “Rise in energy, food, transportation, and import costs may dampen consumer spending on non-discretionary items.”

    The report further stated that it impacts other sectors of the economy as transportation costs are expected to rise just as the floating of the naira will drive up the costs of imported raw materials.

    “Finance costs [are] to increase due to exchange rate losses from higher interest payments incurred on exposure to foreign currency denominated loans,” the report said. “These losses are on account of the currency devaluation.”

    PwC noted that although the increases may have a negative impact, they could provide incentives to corporates to explore local sourcing or backward integration in the medium term.

    The report said that economic reforms, including FX market liberalization, have the potential to attract foreign investments and drive capital inflows in the long term.

    “However, in the short run, investors may take a cautious “wait-and-see” stance, possibly due to the lack of additional reforms aimed at bolstering business and economic fundamentals” adding that “an increase in inflation could lead to a reduction in real yields or returns on investments.”

  • Transcorp Group records 31% revenue growth in H1 2023

    Transcorp Group records 31% revenue growth in H1 2023

    Transnational Corporation Plc has reported its financial results for the first half of the year ended June 30, 2023, recording commendable growth across all its major indices.

    Trancorp is Nigeria’s leading conglomerate with investments in Power, Hospitality, and Energy sectors and has a shareholder base of approximately 300,000.

    The Group achieved an impressive revenue of N82.1 billion in the first half of 2023, compared to N62.9 billion in the period of 2022, marking a substantial 31% growth year-on-year while operating income also grew by 46% to close at N29.9 billion as of June 2023, compared to N20.5 billion in June 2022.

    The Group’s total revenue for the half year ended June 30, 2023, was N82.1 billion, compared to N62.9 billion in June 30 2022, signifying a 31% increase. Operating Income grew by 46% from N20.5 billion in June 2022 to N29.9 billion in June 2023. Operating expenses for the period ended June 30, were N15.9 billion, an increase of 40% compared to N11.3 billion of the corresponding previous year.

    In its financial report filed with the Nigerian Exchange (NGX), Transcorp reported a 39% growth in profit before tax to N18.5 billion in H1 2023, from N13.4 billion in H1 2022. Interest Cost declined by 9% to N6.6 billion in June 2023 from N6.1 billion in the same period under review.

    Transcorp continues to maintain a strong balance sheet, with Total Assets rising to N495.3 billion, representing a 12% increase over the N442.7 billion recorded at the end of June 2022, due to the increase in Debt and equity securities (+61%) and Trade and Other Receivables (+40%) which cushioned the effect of the decline in Inventories (+68%).

    Transcorp shareholders’ funds remained very strong at N176.3 billion up from N154.8 billion recorded in the same period in 2022, further reinforcing the company’s commitment to delivering long-term value to its shareholders.

    Commenting on the result, Transcorp’s President/Group Chief Executive Officer, Dr. (Mrs) Owen D. Omogiafo, said the Group continues to sustain growth and improvement, showing resilience despite, a challenging operating environment, characterised by foreign exchange volatility, gas supply constraints, and rising inflation, amongst others.

    “The first-half financial results affirm our dedication to driving innovation and seizing opportunities for sustainable growth, positioning Transcorp as a trailblazer in the Nigerian business realm. In spite, of the challenging environment, our power businesses (Transcorp Power Limited & Transafam Power Limited) have sustained revenue growth increase by 32% and 30% respectively while our hospitality continues to outperform across all indices.

    “We remain focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all our shareholders,” asserted Dr Omogiafo

    The Group’s diverse portfolio comprises strategic investments in the Power, Hospitality, and Energy sectors. Among its notable businesses are Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power, Transafam Power, and Transcorp Energy.

  • Naira ends week in 0.93% loss against dollar

    The Naira experienced a 0.93% loss against the dollar, ending the week at an exchange rate of N775.76 at the Investors and Exporters window.

    This decline was in comparison to the rate of N768.60 recorded on Thursday. The open indicative rate stood at N776.74 to the dollar on the same day.

    Throughout the trading session, the spot exchange rate fluctuated, with the highest recorded rate being N799.50 before settling at N775.76. Conversely, the Naira saw some low points, reaching N465 to the dollar during the day’s trading.

    Overall, a total of 54.18 million dollars was traded at the investors and exporters window on Friday, highlighting the continued activity in the foreign exchange market.

    The fluctuations in the Naira’s value against the dollar reflect the ongoing challenges in the currency’s stability and the broader economic landscape.

    Investors and traders closely monitored these developments to make informed decisions amidst the volatility in the exchange rates.

  • Kano VIO records N14.2m revenue in H1

    The Kano State Vehicle Inspection Department says it has generated N14.2 million as internal revenue from various fines in the last six months.

    The traffic agency also said it impounded no fewer than 100 faulty vehicles within the period under review across the state.

    The Chief Vehicle Inspection Officer, Mr Hassan Garba, who disclosed this to newsmen in Kano on Friday, said the operation was between January and June.

    Garba said among the impounded vehicles were two cars belonging to its officers.

    He said both commercial and private vehicles that breached the state traffic laws were impounded during the exercise, adding however that “commercial vehicles are higher in number”.

    The officer, however, noted that the impounded vehicles were released to their owners as soon as they were put in good condition.

    “What we do is that when we arrest vehicles, we send them for inspection test and ensure that all the faults are fixed before releasing them,” he said.

    He further revealed that the unit within the period under review, generated N14. 2 million from the projected N150 million revenue generation for the current year.

    Garba, however, blamed the dwindled revenue generated on hitches from the consultants in the Board of Internal Revenue.

    “We were not able to meet our revenue generation target due to some hitches occasioned by consultants in the Board of Internal Revenue.

    “But we expect to generate more revenue now that the administration of His Excellency, Abba Kabir Yusuf, has called off the services of the consultants,” he said.

    Garba said the department had concluded plans to computerise its revenue collection, to block all identified leakages and boost revenue generation.

  • Chinese Yuan slides to 7.1338 against dollar amid market adjustments

    In the ever-fluctuating world of finance, there’s an important update regarding the Chinese currency renminbi, commonly known as the yuan.

    Recent market adjustments have led to a depreciation of the yuan against the US dollar on Friday, bringing it to a rate of 7.1338. This development has caught the attention of investors and financial enthusiasts alike.

    The central parity rate of the yuan against the dollar is a pivotal metric used to gauge the currency’s strength.

    It is calculated based on a weighted average of prices provided by market makers before the opening of the interbank market each business day.

    The rate is a reflection of the prevailing market conditions and economic factors that influence the value of the yuan in relation to the dollar.

    For those closely following the Chinese financial landscape, it’s essential to understand that the yuan is allowed to fluctuate within a specified range in the spot foreign exchange market. Each trading day, the currency is permitted to rise or fall by up to two percent from the central parity rate. This flexibility aims to strike a balance and prevent sudden or drastic currency movements.

    As investors and traders keep a keen eye on the financial developments in China, staying informed about the yuan’s value against the dollar is crucial for making informed decisions. The China Foreign Exchange Trade System plays a significant role in facilitating currency trading and ensuring a stable foreign exchange market within the country.

    The depreciation of the Chinese yuan to 7.1338 against the US dollar highlights the dynamic nature of global finance and the continuous adjustments made in response to market forces.

  • Annual Returns Non-Compliance: CAC to delist 100,000 companies

    Annual Returns Non-Compliance: CAC to delist 100,000 companies

    The Corporate Affairs Commission (CAC) has disclosed that it will strike off one hundred thousand companies that have failed to file annual returns in the last ten years.

    The Registrar-General of the CAC, Alhaji Garba Abubakar, in a statement, said this while speaking at a Training Workshop on the Use of the Beneficial Ownership Register (BOR) in Lagos.

     Abubakar, however, said that the Commission would soon send notices of striking off to the affected companies before embarking on the action as enshrined in section 692 of the CAMA, 2020.

    He explained that the companies were, however, entitled to be relisted upon payment of their outstanding debts and an order of a court, as provided by the law.

    Abubakar, therefore, advised companies to ensure timely payment of their annual return to avoid being struck off.

    On the BOR, he said it was built by CAC with the support and assistance of the World Bank.

    The registrar-general stressed that the register would go a long way in curbing corruption, money laundering, and terrorism financing.

    He, therefore, enjoined stakeholders, especially investigating agencies, legal practitioners, journalists, and civil society organisations, to utilise the BOR in discharging their responsibilities.

    Chairman of the Nigerian Bar Association, who quoted a section on Business Law, (NBA-SBL), Dr Adeyeye Adefulu, commended the CAC for recording yet another important milestone in its history.

     Adefulu, therefore, said that the NBA-SBL would sustain its existing cordial relationship with the Commission and charged members to make good use of the knowledge acquired at the training for the benefit of the Nigerian economy.

    Also speaking, the President of the Association of Bureau De Change Operators of Nigeria (ABDCON), Aminu Gwadabe, underscored the importance of the BOR in the fight against money laundering and terrorism financing.

    Gwadabe advised professionals to apply due diligence while dealing with their clients.

    Representatives from the Special Control Unit against Money Laundering (SCUML), the Nigeria Financial Intelligence Unit (NFIU), and the Securities and Exchange Commission (SEC) also attended the event.

  • Dangote Refinery debunks recruiting 11,000 skilled Indians

    *Says company engaged 30,000 skilled Nigerians, expatriates

    The Management of Dangote Refinery has said that it did not employ 11,000 skilled workers from India.

    Debunking the report in a leading national daily that alleged that 11,000 Indians were on its payroll, the company said there was no way it can neglect young people from Nigeria and other African countries.

    Responding, the Group’s Chief Branding & Communications Officer, Anthony Chiejina said the report was written with malicious intent as it did not reflect the number of skilled Nigerians on site.

    He said, the magnitude of the project requires a specialized skilled workforce from all over the world and that while over 30,000 Nigerians were engaged among the skilled workforce, at the peak of construction in the Refinery complex, 6,400 Indians and 3,250 Chinese workers were among the skilled workforce.

    He also said Nigerians on the project demonstrated a high level of technical competence and many hidden skills were discovered among them.

    He advised the public to discountenance such malicious and twisted reports, and instead focus on the potential impact of the project on the overall economy and well-being of Nigerians as Dangote Group continues to be the leading light in employment generation.

  • Airtel Africa announces $471 loss due to naira devaluation

    Airtel Africa’s revenue in the second quarter of 2023 slumped in the second quarter of 2021, declining by $1.20 billion representing a 4.4 percent decline due to the devaluation of the Naira.

    According to the company’s financial statement filed at the Nigerian Exchange, the unification of the exchange rate by the Central Bank which pushed the exchange rate from N460/$ in June to N790/$ was the reason for the loss

    It stated that the company’s revenue increased by 9 percent during the period to $1.37 billion from the $1.25 billion it recorded in the same period for 2022.

    However, it stated that the company used an exchange rate of N502/$ to prepare its financial result, noting that if the closing rate of N752/$ were used to calculate its financial results, revenues would have slumped to $1.20 billion representing a 4.4 percent decline.

    Airtel Africa Plc made a loss after tax of $151 million in the period under review. This represents a 184.7 percent decrease compared to the profit after tax of $178 million made in the same period of 2022.

    This was driven by the $570 million incurred in foreign exchange and derivative losses. It also recorded a loss before tax of $221 million.

    Earnings per share (EPS) for the period declined to negative 4.5 cents. This represents a 204 percent decrease from the 4.4 cents recorded in the same quarter of 2022.

    The company saw its tax bill reduced on account of the naira devaluation from $119 million in the prior period to $84 million in the current financial statement.

    Despite the harsh macroeconomic environment, Airtel Group saw its customer base increase by 8.8 per cent to 143.1 million users. The customer base for its Nigerian subsidiary grew by 4.8 per cent as the average revenue per user (ARPU) increased by 16 per cent.

    Profit after tax was negative ($151m) driven largely by a foreign exchange loss of $471m recorded in finance cost before tax and $317m after tax because of the devaluation of the Nigerian naira in the month of June 2023.

    In July 2022, the Group prepaid $450m of outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024, while cash at the holding companies was $505m at the end of the period.

    Airtel Africa is a telecoms and mobile money service company operating in 14 countries across West, South, Central and East Africa.

  • Subsidy Removal: Wema Bank joins Zenith, announces staff salary increment 

    In response to the economic challenges brought about by the removal of fuel subsidies, Wema Bank has decided to raise the salaries of its staff as a way of providing some relief.

    According to the bank, the increment was to equip the full cadre of its staff to maintain a good standard of living in the current economic climate and also set the standard for pro-employee initiatives in Nigeria.

    On Wednesday, Zenith Bank announced an increment in staff salaries to cushion the effect of fuel subsidy removal.

    In a statement by its Divisional Head, People, Brand & Culture, Ololade Ogungbenro, the bank said it remains a brand, which in addition to job creation, also ensures that its employees execute their duties in an enabling and rewarding environment without compromising their work-life balance.

    Ogungbenro said it is a stance that has rightfully earned the financial institution its spot among the top-tier banks in the industry, adding that the bank has maintained a track record of actively driving the personal and professional growth of its employees adding that its staff benefit from a plethora of health, wellness, lifestyle, career and financial empowerment initiatives, to help them achieve and live their best lives.

    She maintained that Wema Bank is constantly innovating to ensure the satisfaction of both its customers and employees as further evidenced by the recent increase in the salaries of its employees.

    Ogungbenro added that the financial institution is aware that an effective, enabling working condition comprises all the physical, psychological, and financial factors that boost the well-being, performance, and productivity of employees.