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Category: Business

  • AIICO Insurance denies alleged breach of customer’s contract

    AIICO Insurance PLC has denied media reports that it was dragged to court by one of its lawyer clients over an alleged breach of contract.

    Mr Segun Olalandu, Head Strategic Marketing, and Communications Department, AIICO, said this in a statement in Lagos.

    Olalandu described the alleged court story’s headline as sensational and misleading.

    “Our attention was drawn to a widely circulating story on some online media with the headline: ’Lagos lawyer drags AIICO insurance company to court over breach of contract’, which we find to be sensational and misleading.

    “It is important to clarify that the headline implies that AIICO Insurance breached the contract with its client.

    ”Whereas the reality is that the client failed to fulfill his contractual obligations to the latter, which failure actually undermines the purport of this insurance contract,” he said.

    According to him, AIICO as a responsible corporate entity, choose not to engage in any commentary regarding the ongoing legal case to enable the legal proceedings to follow its due course.

    He noted that the insurer believed firmly in the country’s judicial system and its ability to determine the truth and dispense of the matter accordingly.

    Olalandu stated that the insurance firm remained steadfast in upholding its commitment to transparency, integrity, and the principles of justice.

    “Consequently, we refrain from making any public statements until the conclusion of the current judicial process, whereupon we will address the matter appropriately,” he said.

  • Subsidy Removal: App-based transporters want fare review from Uber, Bolt

    The Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON) has expressed concerns over the ripple effect of the new fuel price on its members.

    Mr Adedamola Adeniran, National President of the union in a statement on Friday in Lagos, said the new fuel price was causing hardship on its members’ earnings and patronages.

    Adediran said this was because members lacked the capacity to increase the fare, unlike independent cab drivers, branded taxi drivers, bus drivers and others.

    He, therefore, urged App-Based Transport companies including Uber, Bolt, Lagride, Indriver and others to urgently review their price upward by 200 percent and set minimum trip fares at N2, 000 naira respectively.

    He also urged the companies not to deactivate any of the drivers as a result of the fuel subsidy removal.

    “The app companies should immediately set their commission at 10 per cent flat or reduce their commission by 50 per cent without any hidden charges, owing to homogeneous commission charges that had made our business unprofitable.

    “We demand that app companies subsidise trip fare for the rider by at least, five per cent to cushion the effect of the increase for the rider, using the gain from homogeneous commission reserved,” he said.

    Similarly, Mr Jossy Olawale, Chairman, Media and Publicity Committee of the union, appealed to the app companies to immediately respond and act on the union’s demands.

    “We will also like to encourage our members to go about their peaceful business and adopt every lawful and profitable means to carrying out their businesses until further directive by the union.”

  • Equity market gains N21bn

    Equity market gains N21bn

    Transactions on the floor of Nigerian Exchange (NGX) on Thursday continued in a positive direction, appreciating by N21 billion following gains recorded by small and medium stocks.


    Market capitalisation of listed equities appreciated by 0.07 per cent to N30.387 trillion from N30.366 trillion reported the previous day.


    Also, the NGX All Share Index increased by 38.97 basis points to 55808.25 points from 55769.28 points reported on Wednesday.


    The NGX trading activities showed that Conoil Plc led gainers table during the day, gaining 9.92 per cent to close at N63.70 per share, Sterling Bank followed with a gain of 9.76 per cent to close at N2.25 per unit, Eterna added 7.74 per cent to N8.45 per unit, Cornerstone Insurance increased by 8.97 per cent to close at N0.85 per share, Mutual Benefits grew by 8.33 per cent to close at N0.39 per share.

    On the contrary, FTNCocoa topped losers chart in percentage terms, declining by 9.88 per cent to close at N0.73 per unit, Champion Breweries trailed with a loss of 9.62 per cent to close at N3.76 per unit, Mcnichols dipped by 9.21 per cent to close at N0.69 per share, Chams Plc down by 8.16 per cent to close at N0.45 per unit, Fidson healthcare declined by 6.93 per cent to close at N9.80 per share.

    Volume of trades declined by 271.290 million representing 41.01 per cent as investors traded 390.219 million shares valued at N5.727 billion in 7725 deals against 661.509 million shares valued at N18.998 billion in 10024 deals.

    Transactions in the shares of AccessCorp led activity chart with account of 51.310 million shares valued at N623.817 million, United Bank for Africa followed with 46.098 million shares cost N453.137 million, FTNCocoa exchanged 37.317 million shares valued at N29.672 million, Zenith Bank traded 37.155 million shares cost N1.090 billion while GTCO Plc traded 34.356 million shares cost N993.221 million.

  • Access Bank launches French Desk

    In a bid to strengthen its business relationship with France, Access Bank PLC has launched the ‘Access Bank French Business Desk’.

    The bank’s Chief Executive Officer, Roosevelt Ogbonna, said in a statement on Thursday that the action followed the opening of the first subsidiary of Access Bank Plc in the European Union, in Paris.

    Ogbonna said the Access Bank French Desk, which was in partnership with Business France, was created as a platform to connect French and Nigerian companies.

    He said the act would provide them with financial solutions to conduct trade and investments between both countries.

    The financial solutions, he said, would be through business advisory services, engagement with relevant institutions, economic roundtables, trade facilitation, and comprehensive banking solutions.

    He said the desk would remain the trusted partner that would empower and facilitate business opportunities for Nigerian and French businesses on their journey to success.

    “The French Desk will help to strengthen the Bank’s partnership with institutions that shared in its commitment to global economic development.

    “We have developed competencies to grow with institutions that have powered us to where we are today even as we continue to create intrinsic value, beneficial to the economies of all the countries where we operate,” Ogbonna said.

    He further said that the new desk would serve as the platform to provide enhanced services and support to French businesses and individuals operating in Nigeria and Nigerian businesses with significant interest in France or seeking to establish their presence in France.

    “By leveraging the expertise and resources of both Access Bank and Business France, the Desk aims to create dynamic and comprehensive banking solutions tailored specifically to the needs of these businesses.”

    The statement also quoted the Group Chief Executive Officer, Access Holdings Plc, Herbert Wigwe, as saying: “Nigeria is Africa’s largest economy endowed with vast human and natural resources while France possesses technological expertise, innovation, and a rich cultural heritage.

    “The Access Bank French Desk will play a pivotal role in facilitating trade and investment between our nations.

    “It will serve as a knowledge hub, providing valuable insights, intelligence, and networking opportunities for businesses from both countries.”

    “We aim to create an enabling environment for French companies to thrive in Nigeria while also assisting Nigerian businesses in navigating the intricacies of the French market.

    “Collaboration with multilateral organisations such as PROPACO and AFD will further enhance the impact of the Access Bank French Desk,” Wigwe added.

    The statement also quoted Mrs Chrysoula Zacharopoulou, French Minister of State for Development, Francophonie and International Partnerships, as congratulating Wigwe and welcoming the signing of an agreement with Business France Nigeria to partner on the French Desk.

    She said: “This initiative illustrates the huge dynamism and potential of the economic ties between Nigeria and France, which have been continuously strengthened since President Macron’s visit to Nigeria in 2018.

    “This Desk will enable us to further strengthen an already substantial economic partnership and benefit companies from both countries, including SMEs”.

  • Nigerian stock market hits N1.51trn gain

    The equities market of the Nigerian Exchange Ltd. (NGX) opened trading for the week on a bullish note driven by investors’ confidence, following the inauguration of President Bola Tinubu.

    Tinubu, in his inaugural speech, said on Monday that the former administration did not capture  fuel subsidy in the 2023 budget and he would ensure a unified exchange rate as part of measures to boost the Nigerian economy.

    Specifically, the market capitalisation recorded a gain of N1.505 trillion or  5.22 per cent to close at N30.349 trillion from N28.844 trillion posted on Friday.

    Also, the All-Share Index (ASI) rose by 2,764.47 points or 5.22 per cent to settle at 55,738.35 compared with 52,973.88 recorded at the previous trading.

    Accordingly, the Year-to-Date gain moderated to 8.76 per cent.

    Index heavyweights, MTN Nigeria, Dangote Cement and BUA Cement drove the market’s strong performance, alongside gains in Tier- one banking stocks such as Guaranty Trust Holding Company (GTCO), Access Holdings, United Bank for Africa (UBA) and Zenith Bank.

    Access Holdings in the shares of Transcorp topped the most traded chart with 199.62million shares valued at N2.45 billion.

    GTCO followed with 76.38 million shares worth N2.18 billion, while Zenith Bank traded 66.13 million shares valued at N1.92 billion.

    UBA traded 81.99 million shares valued at N831.47 million, while Transcorp transacted 95.68 million shares worth N309.24 million.

    Analysts at Vetiva Securities Ltd., said that “The market exhibited a favorable response to President Tinubu’s inauguration speech and his proposed plans for the country’s economy.

    “This positive sentiment is anticipated to endure in the upcoming session, as investors responded positively to the latest transition of power to the new administration.”

    Market breadth closed positive at with 54 advancing stocks that outnumbered four declining ones.

    Zenith Bank recorded the highest price gain of 10 per cent to close at N29.70, per share.

    Transcorp Hotels and Nigeria Breweries followed with a gain 10 per cent each to close at N8.25 and N42.35, per share respectively.

    Jaiz Bank and First City Monument Bank (FCMB) alao went up by 10 per cent  each to close at N1.10 and N4.62  per share respectively.

    On the other hand, Ikeja Hotel led the losers’ chart by 10 per cent loss to close at N2.16, per share.

    NCR followed with a 9.88 per cent decrease to close N2 .76, while Tantalizer dropped by eight  per cent to close 23k, per share.

    Julius Barger followed with a decline of 7.94 per cent to close at N29, while International Energy Insurance was down by 6.98 per cent to close N1.20  per share.

    Analysis of today’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 106.07 per cent.

    A total of 1.08 billion shares valued at N15.80 billion were exchanged in 9,916 deals.

  • We’re not in a hurry to shut down 2G, 3G network- MTN

    The Chief Technical Officer of MTN Nigeria, Mohammed Rufai, has said the telecoms giant is not in a hurry to shut down its 2G and 3G network as it deploys its 5G network.

    The CTO noted that with many Nigerians still unable to upgrade their devices to 4G or 5G, it would be difficult to end investments in 3G technology.

    Rufai added that the 3G spectrum can also be converted to provide 4G and 5G service when 3G is shut down in the future.

    “The fact that we are going to 5G does not mean we will not cater to the needs of subscribers that require the lower technology.

    He revealed that 90 per cent of Nigeria’s population has 2G technology while over 83 per cent of the population has 3G coverage, and the 4G coverage has reached over 79 percent of Nigerians and it is still growing.

    “Each subscriber has their own needs. Some only need 3G; some subscribers will move to 4G. Even though there are significant benefits to moving to higher technology in terms of speed and latency, we try to cater to the needs of everyone. So, devices are one of the main factors in moving to higher technology, and we’re moving quickly.

    He said the company is making progress in the 5G service expansion, saying that it has so far deployed the service in 6 more cities after the initial 7 at the launch in September last year. This brings the total number of cities with 5G networks to 13.

    “So, right now, we are in 13 cities (Lagos, FCT, Owerri, Ibadan, Maiduguri, Abeokuta, Shagamu, Ifo, Warri, Enugu, Benin City, Kano, Port Harcourt etc) and are still expanding. Nigerians are already enjoying the benefits of 5G,” he said.

    Ends

  • Interest rate hike will affect output, increase unemployment – MAN

    Manufacturers Association of Nigeria (MAN) has said that increase in the monetary policy rate by the Central Bank of Nigeria (CBN) would reduce the sector’s output and its ability to absolve new personnel.

    The Director General of MAN, Mr Segun Ajayi-Kadir who disclosed this in a statement said an increase in MPR will compound the imminent recession in the manufacturing sector and negatively impact on its operations.

    He said that such a rise would not not only lead to decline in government revenue as result of low productivity of the manufacturing sector, it will as well lead to high cost of production and decline in capacity utilisation.

    According to him, a hike in MPR will result in an increase in the cost of borrowing that will further discourage investment, reduction in inflow of investment and high product prices owing to rising factor costs, which will in turn render the sector less uncompetitive. 

    Stating MAN position on the increase, he said upward review in MPR from 18 per cent to 18.5 per cent will certainly lead to an increase in lending rates and worsen the uncompetitiveness of the manufacturing sector. 

    He said the interrelationship among macroeconomic variables is essential in policy formulation, as the movements of interest rate, inflation rate and exchange rate have direct impact on investment, employment and output of any economy.  

    He said according to the conventional monetary framework that was adopted by the CBN, increase in MPR should increase interest rate and by extension attract financial investment.

    However, it will also increase the cost of borrowing, crowd out more investments in the real sector and lower the output of the manufacturing sector.”

    He said there is a need for the government to take pragmatic steps to quell the inflationary pressure and reposition the economy.

    “To sustained growth in the sector and economy in general, he said the government needs to take immediate and concrete action to address the manufacturers’ forex needs in order to support and sustain production, adding that prioritizing allocation of forex to the manufacturing sector to procure raw materials, machines and spare parts that are not available locally is the way to go,” he said.  

  • FG upgrades vocational skills centres in Anambra

    The Federal Government has commissioned four upgraded vocational skills training centres in some rural communities in Anambra.

    Outing Minister of Labour and Employment, Chris Ngige said this on Thursday during the formal commissioning of the centres in Alor, Anambra.

    He said the centres are located in Alor, Idemili South LGA, Ifite-dunu in Dunukofia LGA, Akweze and Enugu-Adazi, both in Anaocha LGA of the State.

    Ngige said the ministry, in collaboration with other stakeholders, worked tirelessly towards this goal, recognizing the critical role of skills acquisition in shaping the future of Anambra.

    Ngige described the four digitalised skill centres as the pinnacle of collective efforts in advancing apprenticeship and traineeship development in Anambra State and our Nation.

    He said the centres represent more than just physical structures, symbolise the commitment of the government to mass production of a skilled workforce, capable of meeting the demands of a rapidly changing economy, based on advances in technology.

    “We are now in an era defined by digital changes. It is imperative that we equip our citizens with the necessary competencies to thrive in a competitive job market worldwide.

    “That explains why the syllabi include re-skilling and upgrading knowledge in different trades. The launch of these centres is proof of our vision of inclusive growth and empowerment.

    “We are cognizant of the fact that skill acquisition should be accessible to all, irrespective of gender, social background, or physical ability and location.

    “That explains why those centres are not sited in Awka, the state capital, but in the rural areas where people live mostly,” he said.

    Ngige also said that the centres would be vital in providing equal opportunities to every individual, to ensure that all talents are tapped, leaving none behind.

    The minister while expressing satisfaction with the broad nature of the training courses, noted that they took into consideration the evolving needs of industries and designed a programme that aligned with market demands.

    According to him, from technical skills to soft skills, these centres will provide a holistic learning experience that will equip individuals with the versatility and flexibility required to succeed in the workplace.

    “Furthermore, these skill centres will serve as a stimulus of entrepreneurship and job creation.

    “We believe that the true nature of success lies not only in providing training but also in the provision of opportunities for self-employment and fostering an entrepreneurial spirit,”he said.

    Ngige said by nurturing and supporting aspiring enterprenuers, they aim to create a vibrant ecosystem that encourages innovation, productivity, and sustainable economic growth.

    He noted that all the skills acquisition centres, are linked to the ministry’s National Electronic Labour Exchange (NELEX) platform where every Nigerian could stay and access job openings anywhere in the world.

    Ngige said that the success of these skill centres depends on cooperative efforts.

    He added that a synergy between the government, private sector, education institutions and civil society is essential to realise the full potential of their skill development initiatives.

    Earlier, Dr Tiza Shaakaa, Director of Skills Development and Certification Department in the state commended the minister for the uncommon and laudable projects.

    Shaakaa said that Ngige had shown tremendous interest in apprenticeship development in Nigeria in his eight years as the Minister of Labour and Employment.

    He said that there was an increase in the number of specialist skills training centres in the country, owned and ran by his ministry, from eight to 28.

    He noted that this was beside the ones owned and operated by the National Directorate of Employment (NDE), a parastatal of the ministry.

    He urged indigenes of Anambra State and every other person residing in the state to make good use of this rare opportunity by registering in any of these skill centres to be trained and re-trained.

    He added that this is in order to upgrade or learn new skills in their trades of practice or upscale their present knowledge.

    He also noted that for the trainees and trainers who would not be accommodated in the hostels, the Federal Government has procured buses and vans to convey them to and from the centres.

  • NDE disburses loans to 103 micro businesses

    The National Directorate of Employment (NDE) has begun disbursement of loans to 100 micro-enterprises in Plateau.

    The disbursement is under its Small Scale Enterprises (SSE) department for beneficiaries of its Start Your Own Business (SYOB) and Micro Enterprise Enhancement Scheme (MEES) programs.

    Speaking at the event, the Acting State Coordinator of NDE in Plateau, Mrs. Asabe Lassa, said that the organisation introduced the orientation/training module to the disbursement following the misconception of the loan as a grant.

    “Most beneficiaries of the disbursement are not aware that the loans are supposed to be paid,” she said.

    She said that the beneficiaries would be trained on financial management, discipline and integrity before they are presented with the loans.

    She said that the loan scheme was approved under the leadership of NDE’s Director General, Malam Abubakar Fikpo following the high rate of unemployment in the country and to also eradicate poverty.

    She urged the beneficiaries to appreciate the efforts of Fikpo by using the loan judiciously and complying with repayment arrangements to enable others also benefit from the scheme.

    “Use the loans and let it grow for the benefit of yourself, business or livelihood and the benefit of your family.

    “Do not collect the money and solve family problems,” she said.

    In his remarks, Head of the Department of SSE, Mr. Victor Otukpa said that the training would build the capacity of business owners on managing their enterprises efficiently.

    He urged the beneficiaries to seek assistance when confronted with challenges in their businesses either with consultants or officials of NDE.

    Responding on behalf of the beneficiaries, Mrs Anna Hosea, thanked NDE for the loan while assuring them that they would make judicious use of it and pay as at when due.

    The 100 beneficiaries of MEES would be given ₦20,000 each while the three beneficiaries of SYOP would be given ₦500,000 each.

    The beneficiaries will be trained on financial management which comprises costing goods, services, and record keeping, financial integrity and insurance.

  • How CBN’s 18.5% interest rate hike will affect businesses

    How CBN’s 18.5% interest rate hike will affect businesses

    *Stock Market, Bond Market, Lending Rate, others, to be affected

    Businesses in Nigeria will have to cope with a higher cost of sourcing funds as the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR) from 18% to 18.5%.

    The CBN Governor, Godwin Emefiele, announced the decision on Wednesday after the policy-setting committee meeting at the CBN headquarters in Abuja.

    The development is the third consecutive time the apex bank would be raising the MPR, which determines the interest on lending by financial institutions to borrowers.

    Commercial banks, as a result of this development, would have to hike lending rates to customers, which may eventually end up higher than 30%.

    Also, commercial banks are not unlikely to review upward interest rates on debts that borrowers had collected from them due to this development.

    “This is not healthy for businesses to thrive. This has shown that the economy is in dire need of overhaul since it has failed to support funds for businesses. How can businesses survive this kind of rate hike? CBN has been doing this without results,” a development consultant, Celestine Okeke, is quoted as saying.

    Okeke stressed that it was becoming more expensive to do business in Nigeria, saying, “Those who borrowed money would pay higher. Nigeria’s stocks are expected to experience low yield as a result of the rate hike.”

    While data has shown that constant rate hikes have not curbed inflation, experts urged the monetary authorities to change their strategy to tackle the country’s inflation.

    “Both the monetary and fiscal authorities have to find a lasting solution to the rate hike. It is negatively affecting small and medium-scale enterprises, and it is not a good development for the economy,” a business analyst with Arise Television said while reacting to the MPR hike.

    Meanwhile, in a flash note published on April 16, 2023, professional services company, KPMG Nigeria, argued that inflation is cost-pushed and need not be tackled by the monetary authorities through rate hikes.

    “The reversal of inflation in March after a seeming slowdown in February reinforces our view that the determinants of inflation in Nigeria are largely cost-push factors which are out of control of monetary authorities,” the note said.

    Also, in a report titled, ‘Report Card: CBN’s New Naira Policy and Interest Rate Hikes’, a research consultant with Kwakol, Basil Abia, highlighted reasons why the rate hikes by the MPC have not affected inflation.

    “The CBN’s aggressive push to contain Nigeria’s high inflation by deploying monetary tightening as part of its monetary policy through repeated interest rate hikes has not yielded the intended result. Inflation continues to rise unabated, mostly because the monetary tightening approach is not the right way to contain Nigeria’s supply-side or cost-push inflation.

    “It is important to note that Nigeria’s inflation is driven by supply-side concerns that raise the cost of production and, inadvertently, consumer prices.”

    As explained by analysts, the interest rate has a ripple effect throughout the economy, affecting the Nigeria stock market, bond market, lending rate, consumer and business spending, and asset prices, among others.

    If the benchmark interest rate is lower, they said, the lending rate will be lower, making borrowing attractive to people. In turn, there’s more money to spend. Conversely, if the interest rate is high, lending becomes expensive, and there’s less to spend.

    *ICIR