My Blog

Category: Business

  • Airtel launches 5G service in Lagos, 3 other cities

    Airtel Nigeria has joined MTN Nigeria and Mafab as the telecom giant officially launched services riding on the fifth generation (5G) technology in Lagos, Ogun, Rivers and the FCT.

    The launch brings to three the total number of operators offering services on the technology which promises to deliver super-fast data services and redefine services in other sectors of the economy including medicine, agric, and others.

    MTN Nigeria pioneered the launch of the service which was followed by Mafab Communications.

    Chief Commercial Officer at Airtel Nigeria, Femi Oshinlaja, said 5G services will be available in four major cities of Abuja, the Federal Capital Territory, Lagos, Ogun and Rivers States, adding that services would be extended to other parts of the country subsequently.

    Airtel Nigeria, acquired the fourth-generation (4G) and fifth-generation (5G) spectrums from the Nigerian Communications Commission (NCC) for a cumulative price of $316.7 million in January 2023.

    The telco purchased 100 MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz from the NCC for a gross consideration of $316.7 million, “payable in local currency”.

    Chief Executive Officer (CEO), Airtel Africa, Segun Ogunsanya, said Nigeria is a market with enormous potential for future growth in mobile services.

    He said investment in new technologies and local infrastructure to enable “this growth is a strategic priority for the group and will ensure we are able to provide reliable and affordable services to local communities across the country”.

    In 2021, Airtel dropped out of the bidding process for 5G deployment while MTN and Mafab Communications emerged as winners of the 5G spectrum auction.

    However, in October 2022, the NCC put up another two slots in the 3.5GHz spectrum band for auction, to boost deployment of 5G services in Nigeria.

    NCC, in December 2022, confirmed Airtel as the sole bidder of the 5G licence after a payment of $27.36 million as an intention-to-bid deposit (IBD).

    In December 2021, after 11 rounds of bidding that lasted for eight hours, Mafab and MTN Nigeria emerged as the two successful winners of the 3,5gigahertz (GHz) spectrum auction for the deployment of 5G technology in Nigeria.

    Equity market opens week positive, gains N7bn

    Local equity market Monday opened on a positive note; gaining N7 billion amid investors profit taking activities.

    Market capitalisation of listed equities increased by 0.02 per cent to N32.133 trillion from N32.126 trillion reported the previous day.
    The NGX All Share Index also appreciated by 13.89 basis points to 59014.85 points from 59000.96 points it closed on Friday.

    Activities in the market were boosted by selloff in the shares of Jaiz Bank, Sterling Bank, GTCO Plc, UBA and others.

    A review of the investment during the day showed that Tantalizer and Universal insurance led gainers table during the day, gaining 10 per cent each to close at N0.22 per cent and N0.22 per cent respectively. Unuty Bank followed with a gain of 9.80 per cent to close at N1.12 per share, Mutual Benefits Assurance added 9.76 per cent to close at N0.45 per unit, FTN cocoa increased by 9.63 per cent to close at N1.48 per share.

    On the contrary  EllahLakes recorded the highest loss during the day with a drop of 10 per cent to close at N1.04 per share, JohnHolt trailed with a loss of 9.57 per cent to close at N1.80 per shares, Omatek and Regal insurance fell by 7.14 per cent each to close at N0.26 and N0.39 per share respectively.

    Volume of trades increased by 270.538 million, representing 43.47 per cent as Investors traded 892.954 million shares valued at N11.147 million in 9274 deals against 622.416 million shares valued at N6.510 billion in 9417 deals.

    Transactions in the shares of Jaiz Bank led activity during the day with 139.891 million shares valued at N244.317 million, Sterling Bank followed with 105.543 million shares worth N311.106 million, Universal insurance traded 95.115 million shares cost N19.253 million, GTCO Plc

  • NRC records drop as 441,725 Nigerians travel by rail

    A total of 441,725 passengers travelled via the rail system in Q1 2023, lower than the 953,099 reported in the corresponding quarter of 2022. This represented a growth rate of -53.65 per cent.

    The rail transportation data for Q1 2023 by the National Bureau of Statistics (NBS), showed that 59,966 tons of goods were transported in Q1 2023, compared to 39,379 tons reported in Q1 2022.

    “In terms of revenue generation, N768.44 million was received from passengers over the period, lower by 63.02% relative to N2.08 billion in the same quarter of the previous year.

    “Similarly, N181.27 million was collected in Q1 2023 as revenue from goods/cargos, up by 99.28% from N90.96 million received in Q1 2022.

    “In addition, other receipts amounted to N34.17 million, indicating a decline of 41.02% in Q1 2023, from the N57.92 million collected in Q1 2022,” the NBS said.  

  • Chinese Yuan strengthens 7.1201 against dollar

    The central parity rate of the Chinese currency renminbi, or yuan, strengthened 88 pips to 7.1201 against the dollar on Monday, according to the China Foreign Exchange Trade System.

    In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.

    The central parity rate of the yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

  • S/African Johann Rupert overtakes Dangote as Africa’s richest man

    South African Johann Rupert has displaced Nigerian billionaire businessman Aliko Dangote to become Africa’s richest man, Forbes Magazine said.

    Rupert’s net worth is currently $12 billion according to Forbes Real-time Global Billionaires Ranking, while Dangote trails behind him with a net worth of $10.8 billion as of Friday.

    Dangote’s net worth dropped due to the recent operational charges on the foreign exchange market carried out by the Central Bank of Nigeria, which led to the depreciation of the Naira against the US dollar.

    Consequently, Forbes and Bloomberg had to recalculate the fortunes of all Nigerian billionaires leading to the significant drop in the wealth of Dangote, Abdul Samad Rabiu, the founder of BUA cement, and Mike Adenuga, the Chairman of telecommunications giant Globacom Limited.

    Meanwhile, with the expected kickoff of the $20 billion Dangote refinery commissioned last Month, Aliko Dangote is expected to bounce back.

  • Binance Nigeria Limited a scam, Global CEO declares

    The Chief Executive Officer (CEO) of Binance, Changpeng Zhao on Sunday declared that the Binance Nigeria Limited is a scam entity.

    Binance is a leading cryptocurrency platform globally. 

    In a statement in his verified twitter handle Zhao said “Binance Nigeria Limited is a scam.  

    “Binance have issued a cease & desist notice to the scammer entity “Binance Nigeria Limited”. Don’t believe everything you read in the news.”

    This comes as the Securities and Exchange Commission (SEC) had declared that Binance Nigeria is operating illegally in Nigeria. 

    SEC had said the crypto entity was not registered or regulated by the Commission.  

  • How financing can boost low-income countries’ resilience to shocks – Experts

    Experts have said that multilateral financing can boost the resilience of low-income countries to global financial shocks.

    They noted that with low-income countries first from the Covid-19 pandemic and now the disruption of global supply chain due to the Russian-Ukraine war, increased financing would help abate the impact on poor and vulnerable nations.

    According to Karmen Naidoo and Nelson Sobrinho, in a research, economic gains from $272 billion in pandemic support for 94 countries were strongest in the poorest and more vulnerable recipients of IMF concessional financing

    “Low-income countries face multiple economic challenges—including rapid inflation, food insecurity, costly borrowing, and mounting debt—heightened by shocks from the pandemic and Russia’s war in Ukraine.”

    The Fund had earlier this year, revised downwards its growth projections for low-income countries, where per capita income growth is falling further behind the rates needed to catch up with advanced economies.

    The Bretton Woods Institute stated that the situation threatens to reverse a decades-long trend of steadily converging living standards.

    Naidoo said:”To boost economic growth and put them back on a path to income convergence with advanced economies, we estimate that low-income countries need an additional $440 billion of financing through 2026 from all available sources. As part of this, IMF concessional financing offered at low or zero interest rates will play a key role in helping these countries cushion the impact on growth from ongoing shocks and future crises.

    “The benefits of such financing were visible during the pandemic, when IMF-funded economies, on average, saw stronger, faster recoveries than unfunded counterparts, based on readings across three indexes tracking economic activity,” Sobrinho said.

  • Bears intervene as equity market dips by N430bn

    Trading activities on the floor of Nigerian Exchange on Thursday returned to negative trend, declining by N430 billion.


    Market capitalisation of listed equities on Thursday dropped by 1.32 per cent to N32.232 trillion from N32.662 trillion reported on Wednesday.


    Also, the NGX All Share Index also depreciated by 789.89 basis points to 59195.21 points from 59985.10 points traded the previous day.


    A review of the trading for the day showed that MRS Plc, Transco Hotel and Total Plc led gainers table during the day appreciating by 10 per cent each to close at N68.75, N13.31 and N336.70 per shares respectively. Ikeja Hotel followed with a gain of 9.97 per cent to close at N3.31 per share, ETranzact added 9.92 per cent to close at N5.32 per share.


    On the contrary, SUNU Assurance topped losers chart in percentage terms, declining by 10 per cent to close at N0.45 per unit, Cornerstone Insurance trailed with a loss of 9.73 per cent to close at N1.02 per share, Mcnichols fell by 9.33 per cent to close at N0.68 per share, Access Corp fell by 9.24 per cent to close at N14.25 per unit, RTBriscoe fell by 8.83 per cent to close at N0.31 per unit.


    Investors traded 1.170 billion shares valued at N15.359 billion in 12611 deals against 1.296 billion shares worth N21.080 billion in 11947 deals.


    Transactions in the shares of United Bank for Africa led activity during the day, with 192.832 million shares valued at N2.344 billion, AccessCorp followed with account of 121.537 million shares valued at N1.962 billion, Fidelity Bank traded 102.638 million shares valued at N726.740 million, GTCO Plc exchanged 99.847 million shares worth N3.325 billion while Sterling Bank traded 79.277 million shares cost N238.314 million.

    Bears intervene as equity market dips by N430bn

    Trading activities on the floor of Nigerian Exchange on Thursday returned to negative trend, declining by N430 billion.


    Market capitalisation of listed equities on Thursday dropped by 1.32 per cent to N32.232 trillion from N32.662 trillion reported on Wednesday.


    Also, the NGX All Share Index also depreciated by 789.89 basis points to 59195.21 points from 59985.10 points traded the previous day.


    A review of the trading for the day showed that MRS Plc, Transco Hotel and Total Plc led gainers table during the day appreciating by 10 per cent each to close at N68.75, N13.31 and N336.70 per shares respectively. Ikeja Hotel followed with a gain of 9.97 per cent to close at N3.31 per share, ETranzact added 9.92 per cent to close at N5.32 per share.


    On the contrary, SUNU Assurance topped losers chart in percentage terms, declining by 10 per cent to close at N0.45 per unit, Cornerstone Insurance trailed with a loss of 9.73 per cent to close at N1.02 per share, Mcnichols fell by 9.33 per cent to close at N0.68 per share, Access Corp fell by 9.24 per cent to close at N14.25 per unit, RTBriscoe fell by 8.83 per cent to close at N0.31 per unit.


    Investors traded 1.170 billion shares valued at N15.359 billion in 12611 deals against 1.296 billion shares worth N21.080 billion in 11947 deals.


    Transactions in the shares of United Bank for Africa led activity during the day, with 192.832 million shares valued at N2.344 billion, AccessCorp followed with account of 121.537 million shares valued at N1.962 billion, Fidelity Bank traded 102.638 million shares valued at N726.740 million, GTCO Plc exchanged 99.847 million shares worth N3.325 billion while Sterling Bank traded 79.277 million shares cost N238.314 million.

  • CBN collapses all forex markets into I&E window

    CBN collapses all forex markets into I&E window

    The Central Bank of Nigeria has released new operational changes to the foreign exchange market in the country.

    The Apex bank in the new operational changes abolished all segments of the foreign market and collapsed them into the Investors and Exporters (I&E) window.

    It said in the guideline signed by Angela Sere-Ejembi, Director, Financial Markets that applications for medicals, school fees, BA/PTA, and SMEs would continue to be processed through deposit money banks.

    In the new changes, the CBN reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window.

    It stated that operations in this window would be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007.

    It added that all eligible transactions are permitted to access foreign exchange at this window.

    The CBN stated that the operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.

    It also announced the proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures, adding that the limits on overbought positions shall be zero.

    The apex bank also announced the re-introduction of order-based two-way quotes, with bid-ask spread of A1. All transactions, it added must be cleared by a Central Counter Party (CCP).

  • Subsidy: Marketers lament delay in payments

    Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has disclosed that its members now spend as much as N25 million to purchase a 45,000 litres truck of Premium Motor Spirit popularly referred to as petrol.

    Before the subsidy was withdrawn, a fuel tanker was purchased for N7 million. 

    According to NOGASA, the situation has made it impossible for its members to cough out the differentials.

    National President of NOGASA, Mr. Bennett Korie, who revealed this Wednesday in Abuja, insisted that there is need to also consider the problems associated with the removal.

    “We are 100 percent in support of subsidy removal, but you know that everybody is talking about subsidy removal but they don’t talk about the problem behind the subsidy removal. It is good to remove subsidies but there are things that people don’t know, for instance, some of the marketers don’t have the money to pay differentials. 

    “This is because in less than an hour that Mr. President announced the removal of the subsidy, the price changed and that affected a lot of marketers. We are talking about millions of naira. Before the removal, a tanker of fuel was selling for about seven million, but in less than an hour, it went up to 25 million naira, where is the money?” he lamented.

    Korie said that Nigeria’s high interest rate of 30 percent was making it difficult for marketers to make profits. According to him, where would marketers get money from to continue the distribution of petroleum products across the country.

    He urged the federal government to pay marketers their outstanding of the Petroleum Equalization Fund (PEF) to boost their Capita and enable them stay in business.

    “Subsidy was removed without considering some of these problems. At the same time, before now, we have this PEF.  But they are not paying the marketers. There is no money, where do we get the money?

    “Therefore, I want to use this opportunity to appeal to the government to please pay marketers their PEF, so that they will continue in business, if it is not paid, we would not get fuel to sell,” he said.

  • NRC revenue drops by 63% to N768.44m- NBS

    NRC revenue drops by 63% to N768.44m- NBS

    The Nigerian Railway Corporation (NRC’s) revenue from passengers plummets to N768.44 million in Q1 of 2023, the National Bureau of Statistics (NBS) has said.

    This is contained in the NBS Rail Transportation Data for Q1 2023 released in Abuja on Wednesday.

    The report showed that the figure dropped by 63.02 percent compared to the N2.08 billion received in Q1 of 2022.

    It showed that N181.27 million was collected in Q1 2023 as revenue from goods/cargos, this rose by 99.28 percent from N90.96 million received in Q1 2022.

    The report stated that other receipts amounted to N34.17 million, showing a decline of 41.02 percent in Q1 2023, from the N57.92 million collected in Q1 2022.

    The report further showed that the number of rail transport passengers in Q1 2023 dropped by 511,374.

    “This is lower than the 953,099 recorded in Q1 2022, representing a growth rate of -53.65 percent.”

    In addition, the report showed that 59,966 tons of goods were transported in Q1 2023, compared to 39,379 tons reported in Q1 2022.