NYSC Launches 2021 Health Initiative For Rural Dwellers

Brand Spur
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NYSC Launches 2021 Health Initiative For Rural Dwellers

National Youth Service Corps (NYSC) has launched its 2021 medical teams’ Health Initiative for Rural Dwellers (HIRD).

The scheme’s Director-General, Brig.-Gen. Shuaibu Ibrahim said at the launch in Abuja on Monday that the initiative, medical outreach to rural communities, would feature sensitization on disease prevention and care.

Ibrahim said the scheme had donated over 300 wheelchairs with the support of partners and established community-based clinics and humanitarian support, among others, to communities.

According to him, the 2021 centrally-coordinated medical outreach with the theme “Health is Wealth for Advancement” is taking place simultaneously in all states of the federation and the Federal Capital Territory (FCT).

He added that “apart from the HIRD, corps members have been using the NYSC Community Development Service (CDS) platforms to make health-related interventions, including medical outreaches, health surveys and other health activities.

“Others include campaigns against HIV/AIDS, malaria control, guinea worm eradication, immunization against measles, poliomyelitis, and other child-killer diseases, as well as Ebola Virus Disease (EVD).

“Also, while the nation was observing the COVID-19 lockdown, we harnessed the talent of corps members for various interventions, including mass production and donation of face masks and others through the FCT Administration and state governments.”

Ibrahim said that the interventions through the HIRD scheme recorded enormous impact toward reproductive health, reduction of maternal and infant mortality, among others.

The NYSC Coordinator in the FCT, Alhaji Suleiman Abdul, said the scheme was aimed at impacting positively on the lives of the less privileged, using Community Development Services as a platform.

Abdul said that with the scheme, rural dwellers would get the desired healthcare throughout the year.

He, therefore, pledged the scheme’s readiness to sustain the initiative and appealed for support from well-meaning Nigerians and corporate organizations to bring healthcare closer to rural dwellers.

He explained that “the ability of youth corps members to come together as one and identify the needs of their host communities is an indication that the geographical spread and intellectual capacity of these patriots are elixir for national development.

“This scheme has earned the right to be described as the ‘Leading Light of Youth Organisations’ and we shall continue to lead the pace,” he said.

Meanwhile, Malam Bello Musa, the Village Head of Damagazan Hausawa Kari Community in the  FCT, appreciated NYSC for the health intervention, while soliciting for agricultural interventions to assist the villagers.

Musa appealed to the government to establish government school in the community as there was none to cater for the educational needs of the people, with a population of about 1,500.

Global Top 100 Most Valuable Brands Reaches $7 Trillion – Kantar BrandZ

Esan Bolaji
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Global Top 100 Most Valuable Brands Reaches $7 Trillion – Kantar BrandZ

The total value of the 2021 Kantar BrandZ™ Top 100 Most Valuable Global Brands has grown by 42%, to reach record-setting new heights of over $7 trillion. The accelerated growth of the world’s most valuable brands reflects an impressive rebound from the economic toll of the global pandemic.

In other years, such a result would be a cause for gleeful celebration. Instead, the mood is more one of hope and relief. 2021 is set to be a year of recovery. And recovery is a complicated, charged topic to approach after a year so filled with loss and challenges. There’s a measure of gratefulness in moving forward, but also a determination not to forget hard lessons learned during the worst of the COVID-19 pandemic.

But recovery is also a simple force of economic nature: what goes down, most often will come back up again, if in a somewhat altered form. And going forward, the livelihoods of many people around the world will, indeed, depend on how well businesses and brands can understand and harness the forces of economic recovery.

Kantar BrandZ Most Valuable Global Brands

In this way, Kantar’s work has gained a new purpose: aiding in the rebuilding of a more advanced and innovative global economy. We know that the world will be different – that, post-pandemic, stakeholders of all stripes will hold brands to new and higher standards.

Across all industries, and in all markets, CEOs and CMOs will need to quickly adjust to these new expectations around trust, value, and mutual responsibility.

TECH RULES THE RANKINGS – Drives more than half of the Top 100’s value

Across all categories, technology-driven brands account for more than 50% of the value of the Kantar BrandZ™ Top 100. This figure includes leading social media, electronics, and business services brands such as Facebook, Apple, and Microsoft – but also tech-enabled retailers like Amazon and Pinduoduo. In 2006, technology brands represented less than 27% of the Top 100’s value.

Most Valuable Brands
Source: Kantar BrandZTM (including data from Bloomberg / S&P Capital IQ)

Amazon maintained its position as the world’s most valuable brand, growing 64% to US$684bn. Having first entered the ranking in 2006, Amazon’s brand value grew by almost $268bn this year. It became the first half-a-trillion-dollar brand, alongside Apple, at number 2, valued at $612bn.

At number 47, Tesla is the fastest growing brand and it has become the most valuable car brand, growing its value by 275% to $43bn. It has more than doubled its value, alongside Chinese brands: Moutai (no.11, $109bn), Meituan (no.34, $52bn), TikTok (no.45, $44bn) and Pinduoduo (no.81, $22bn).

13 new entrants joined the 2021 global ranking, including Nvidia (no.12, $105bn), Zoom (no.52, $37bn), AMD (no.57, $33bn) and Spotify (no.99, $19bn).

Amazon, Apple, Google Most Valuable Brands But China’s Rising – Kantar

Esan Bolaji
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0
Amazon, Apple, Google Most Valuable Brands But China’s Rising – Kantar

Amazon, Apple and Google are the world’s most valuable brands, however, Chinese brands are rising up the leaders’ list and are more valuable than Europe’s top brands, according to a global ranking by Kantar’s BrandZ.

Amazon maintained its position as the world’s most valuable brand, growing 64% to $684bn (or the equivalent GDP of Poland). Having first entered the BrandZ ranking in 2006, Amazon’s value grew by almost $268bn this year and became the first half-a-trillion-dollar brand, joined by Apple, valued at $612bn.

Amazon, founded in 1994 by Jeff Bezos, remained the world’s most valuable brand with an estimated value of $684 billion, followed by Apple, founded in 1976, at $612 billion and Google at $458 billion.

Most Valuable Brands
Photo by Piotr Cichosz

China has consolidated its lead over Europe. Chinese brands have grown from 11% of the top 100 value in 2011 to 14% today. European brands, in contrast, now represent 8% of the ranking’s value versus 20% in 2011.

China’s biggest social media and video games company, Tencent, was the People’s Republic’s top brand, in fifth place, while Alibaba was in seventh place.

Rank 2021​ ​Brand​ Brand Value 2021 ($mil.) ​ “% Change 2021 vs 2020​”​
1​ Amazon​ $683,852 ​ 64%​
2​ Apple​ $611,997 ​ 74%​
3​ Google​ $457,998 ​ 42%​
4​ Microsoft​ $410,271 ​ 26%​
5​ Tencent​ $240,931 ​ 60%​
6​ Facebook​ $226,744 ​ 54%​
7​ Alibaba​ $196,912 ​ 29%​
8​ Visa​ $191,285 ​ 2%​
9​ McDonald’s​ $154,921 ​ 20%​
10​ MasterCard​ $112,876 ​ 4%​

Kantar BrandZ Top 10 Most Valuable Global Brands 2021

Tesla is the fastest growing brand and became the most valuable car brand, growing its value by 275% year on year to $42,6bn.

Five brands more than doubled their brand values: Pinduoduo, Meituan, Moutai and TikTok from China, and Tesla from the USA.

Overall growth has been fuelled by 69 brands increasing their value by at least 5% since 2020, together with 13 new entrants, including Zoom, Nvidia and AMD, and Spotify.

Technology dominates the top end of the Kantar BrandZ ranking, with seven of the top ten brands coming from the tech sector. Tech has also enabled non-tech brands to achieve significant growth, for example, Gucci – harnessing the power of TikTok during the pandemic – and Domino’s – leveraging online and delivery services. The top 10 brands are today valued at $3,3trn, compared to $800bn in 2011.

US brands grew fastest in 2021 with their brand values growing an average 46% year-on-year, meaning the US now accounts for 74% of the top 100’s total value, despite having just 24% of global GDP.

“2020-1 has been a record year for brand growth, and despite many facing a difficult year, our research has again proven that strong brands deliver superior shareholder returns, are more resilient and recover more quickly,” comments Nathalie Burdet, CMO of Kantar.

“With global e-commerce growing from 12% to 15% of all sales in 2020, it has been a positive year for brands involved in that value chain – from the retailers through to the couriers like FedEx and UPS.

However, we have also seen growth in industries where many were predicting challenges early in the pandemic. Apparel brands for example have collectively grown even more than media and entertainment brands in the ranking, and luxury brands, despite reduced travel and lockdowns globally, have refocused their energies and seen growth as a result.”

Kantar BrandZ

Across industries brands have been rewarded for meeting consumers’ changing needs and behaviours:

  • As consumers spent more time at home during the lockdown, the Kantar BrandZ top 10 media and entertainment brands experienced impressive growth (+50%). The technologies behind gaming, chip providers NVIDIA and AMD, entered the ranking for the first time.
  • The media and entertainment space was overtaken by the apparel category with value growth of 53%, as people redefined the boundaries between work and leisurewear. This was driven by athleisure, with Adidas, Nike, Puma and Lululemon all securing 50%+ value growth. Whilst, collectively, fast fashion did not grow as fast, although, notably, Uniqlo (+88%) and H&M (+47%) grew valuations significantly.
  • As more of the world turned to online shopping during the pandemic, the top 20 retailers grew their brand value by a combined 48%. Beyond Amazon’s success, Chinese e-commerce brands showed strong growth; Alibaba, number seven in the global ranking, consolidated its position as the second most valuable retail brand, and Pinduoduo was the fastest-growing retail brand. The e-commerce giants are not the only retail winners: The Home Depot saw 22% value growth thanks to online sales growth of 86%1, while Walmart grew its value by 30% and Lowe’s 51%.
  • New entrant Zoom was one of the big tech stories of 2021, with its ease of use and reliability driving momentum with business and personal users. It entered the ranking at 52 with a valuation of $36,9bn.
  • Subscription models have been a significant driver of success for many. Microsoft is one of the best examples of this (+26%) innovating offers to adapt to new working environments and transition to subscription models to improve convenience and scalability. Xbox (+55%), Disney (+13%) and Netflix (+55%) all saw growth, while Spotify entered the ranking following a 454% growth in subscribers from 2015-20 and a significant improvement in consumer brand equity. Beyond technology, subscription-based models are also increasing the value of a broad range of brands including Lululemon, Nike, Mercedes-Benz and Heineken.
  • Alcohol maintained its growth throughout the pandemic, fuelled by Chinese Baiju brands. The most valuable alcohol brand in the world is Moutai ($109,3bn) – which doubled its valuation in one year and is now four times the size of Budweiser (with the second biggest alcohol valuation of $25,5bn). Heineken was the fastest-growing beer brand growing 16% (number four in alcohol ranking).

Reputation, especially for sustainable and ethical purposes, is increasingly a driver for brand growth. The luxury category saw 34% brand growth with, predominantly, French and Italian luxury companies such as LVMH investing in their corporate reputation through pandemic-related initiatives, sustainable transformation and support for social movements such as Black Lives Matter (BLM).

Similarly, L’Oréal Paris successfully bucked the trend across beauty brands in the pandemic, securing brand growth by flexing its assets and driving female empowerment.

“This year’s results show that brand building remains critical to securing growth,” explains Burdet. “We track the stock market performance of our strongest brands and have seen these recover twice as fast as other key indices.

Our analytics have uncovered that 70% of what makes a brand successful is executing four fundamentals well: providing superior experience across consistently branded touchpoints, a range of well-designed and functional products and services, convenience and exposure through great advertising.

However, Covid-19 has emphasised consumer values such as trust and reliability. Those brands that are evolving their values, projecting leadership on these issues are demonstrating differentiation and standing out.”

Kantar BrandZ Most Valuable Global Brands 2021

Kantar
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Kantar BrandZ Most Valuable Global Brands 2021

The world’s most valuable brands have experienced record growth according to the Kantar BrandZTM Most Valuable Global Brands 2021 ranking, with the total worth reaching $7,1trn – equivalent to the combined GDP of France and Germany.

The 42% increase; more than four times the study’s annual average percentage increase over the past 15 years, has been driven by confidence derived from vaccine availability, economic stimulus packages and improving GDP outlooks. US brands account for 56 of the top 100 brands, with Amazon and Apple leading the way – each now worth over $½trn.

Key trends highlighted in this year’s Kantar BrandZ Most Valuable Global Brands study include:

Kantar BrandZ

  • Amazon maintained its position as the world’s most valuable brand, growing 64% to $684bn (or the equivalent GDP of Poland). Having first entered the BrandZ ranking in 2006, Amazon’s value grew by almost $268bn this year and became the first half-a-trillion-dollar brand, joined by Apple, valued at $612bn.
  • Tesla is the fastest growing brand and became the most valuable car brand, growing its value by 275% year-on-year to $42,6bn
  • Five brands more than doubled their brand values: Pinduoduo, Meituan, Moutai and TikTok from China, and Tesla from the USA.
  • Overall growth has been fuelled by 69 brands increasing their value by at least 5% since 2020, together with 13 new entrants, including Zoom, Nvidia and AMD, and Spotify.
  • Technology dominates the top end of the Kantar BrandZ ranking, with seven of the top ten brands coming from the tech sector. Tech has also enabled non-tech brands to achieve significant growth, for example, Gucci – harnessing the power of TikTok during the pandemic – and Domino’s – leveraging online and delivery services. The top 10 brands are today valued at $3,3trn, compared to $800bn in 2011.
  • US brands grew fastest in 2021 with their brand values growing an average 46% year-on-year, meaning the US now accounts for 74% of the top 100’s total value, despite having just 24% of global GDP.
  • China has consolidated its lead over Europe. Chinese brands have grown from 11% of the top 100 value in 2011 to 14% today. European brands, in contrast, now represent 8% of the ranking’s value versus 20% in 2011.
Rank 2021​ ​Brand​ Brand Value 2021 ($mil.) ​ “% Change 2021 vs 2020​”​
1​ Amazon​ $683,852 ​ 64%​
2​ Apple​ $611,997 ​ 74%​
3​ Google​ $457,998 ​ 42%​
4​ Microsoft​ $410,271 ​ 26%​
5​ Tencent​ $240,931 ​ 60%​
6​ Facebook​ $226,744 ​ 54%​
7​ Alibaba​ $196,912 ​ 29%​
8​ Visa​ $191,285 ​ 2%​
9​ McDonald’s​ $154,921 ​ 20%​
10​ MasterCard​ $112,876 ​ 4%​

Kantar BrandZ Top 10 Most Valuable Global Brands 2021

“2020-1 has been a record year for brand growth, and despite many facing a difficult year, our research has again proven that strong brands deliver superior shareholder returns, are more resilient and recover more quickly,” comments Nathalie Burdet, CMO of Kantar.

“With global e-commerce growing from 12% to 15% of all sales in 2020, it has been a positive year for brands involved in that value chain – from the retailers through to the couriers like FedEx and UPS.

However, we have also seen growth in industries where many were predicting challenges early in the pandemic. Apparel brands for example have collectively grown even more than media and entertainment brands in the ranking, and luxury brands, despite reduced travel and lockdowns globally, have refocused their energies and seen growth as a result.”

Kantar BrandZ

Across industries brands have been rewarded for meeting consumers’ changing needs and behaviours:

  • As consumers spent more time at home during the lockdown, the Kantar BrandZ top 10 media and entertainment brands experienced impressive growth (+50%). The technologies behind gaming, chip providers NVIDIA and AMD, entered the ranking for the first time.
  • The media and entertainment space was overtaken by the apparel category with value growth of 53%, as people redefined the boundaries between work and leisurewear. This was driven by athleisure, with Adidas, Nike, Puma and Lululemon all securing 50%+ value growth. Whilst, collectively, fast fashion did not grow as fast, although, notably, Uniqlo (+88%) and H&M (+47%) grew valuations significantly.
  • As more of the world turned to online shopping during the pandemic, the top 20 retailers grew their brand value by a combined 48%. Beyond Amazon’s success, Chinese e-commerce brands showed strong growth; Alibaba, number seven in the global ranking, consolidated its position as the second most valuable retail brand, and Pinduoduo was the fastest-growing retail brand. The e-commerce giants are not the only retail winners: The Home Depot saw 22% value growth thanks to online sales growth of 86%1, while Walmart grew its value by 30% and Lowe’s 51%.
  • New entrant Zoom was one of the big tech stories of 2021, with its ease of use and reliability driving momentum with business and personal users. It entered the ranking at 52 with a valuation of $36,9bn.
  • Subscription models have been a significant driver of success for many. Microsoft is one of the best examples of this (+26%) innovating offers to adapt to new working environments and transition to subscription models to improve convenience and scalability. Xbox (+55%), Disney (+13%) and Netflix (+55%) all saw growth, while Spotify entered the ranking following a 454% growth in subscribers from 2015-20 and a significant improvement in consumer brand equity. Beyond technology, subscription-based models are also increasing the value of a broad range of brands including Lululemon, Nike, Mercedes-Benz and Heineken.
  • Alcohol maintained its growth throughout the pandemic, fuelled by Chinese Baiju brands. The most valuable alcohol brand in the world is Moutai ($109,3bn) – which doubled its valuation in one year and is now four times the size of Budweiser (with the second biggest alcohol valuation of $25,5bn). Heineken was the fastest-growing beer brand growing 16% (number four in alcohol ranking).

Reputation, especially for sustainable and ethical purposes, is increasingly a driver for brand growth. The luxury category saw 34% brand growth with, predominantly, French and Italian luxury companies such as LVMH investing in their corporate reputation through pandemic-related initiatives, sustainable transformation and support for social movements such as Black Lives Matter (BLM).

Similarly, L’Oréal Paris successfully bucked the trend across beauty brands in the pandemic, securing brand growth by flexing its assets and driving female empowerment.

“This year’s results show that brand building remains critical to securing growth,” explains Burdet. “We track the stock market performance of our strongest brands and have seen these recover twice as fast as other key indices.

Our analytics have uncovered that 70% of what makes a brand successful is executing four fundamentals well: providing superior experience across consistently branded touchpoints, a range of well-designed and functional products and services, convenience and exposure through great advertising.

However, Covid-19 has emphasised consumer values such as trust and reliability. Those brands that are evolving their values, projecting leadership on these issues are demonstrating differentiation and standing out.”

Elev8 education Launches Cybersecurity Training to Enable Businesses Protect Their Cloud Assets and Reputation

Esan Bolaji
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0
Elev8 education Launches Cybersecurity Training to Enable Businesses Protect Their Cloud Assets and Reputation

Elev8 education, a global digital skilling academy that offers technology specialized training programs, recently hosted a free cybersecurity training webinar on Linkedin to better prepare cybersecurity experts and business executives on how best to safeguard their cloud assets and brand reputation.

As office work shifted to personal residences following the covid-19 pandemic, cybercriminals have taken advantage of the opportunity to exploit insecure networks. As the rate of cloud adoption rises, new attack vectors and surfaces emerge, which is why training like cybersecurity by leading providers of specialized technical training like Elev8 Education, are important for businesses today.

Sergey Chubarov, a Russian Cloud Architecture, and security expert moderated the cybersecurity training. The training emphasized the importance of cloud services in general and offered actual cases of common cloud risks.

Elev8

During the webinar, Ashim Egunjobi, Country Head for elev8 Nigeria, said, “As cloud computing’s popularity grows, so do its risks.” As a result, cloud practitioners, administrators, and architects must follow security best practices and employ robust defensive tactics to reduce the risk of attacks and unauthorized access.

At elev8, we understand the importance of having a support structure like ours to help IT specialists, business managers, and leaders upskill and reskill so that they can comprehend, adapt, and thrive in the ever-changing digital landscape and as a follow up to this webinar, we will be holding a Bootcamp training on Cybersecurity on the 5th-7th of July”.

elev8 aims to be a leading global player for mass digital skilling and transformative education initiatives.

Our purpose is to make a social impact in the countries where we operate.

To learn more, visit https://www.elev8me.com/en-us/landing-pages/executiveprogramplaintemplate

elev8 is a global academy that offers technology specialized training programs. We are passionate about driving business development and growth in a constantly evolving and increasingly challenging digital landscape.

Our global academy equips business leaders, teams, and organizations with the skills they need to leverage the potential of innovative technologies and digital trends.

As government and industry look to prepare Nigeria’s labour force for growth, elev8 offers unique learning opportunities to equip people with the most in-demand skills and experience in exciting modern technologies, including big data, machine learning, artificial intelligence, cloud, and cybersecurity.

World Blood Donor Day: Wema Bank, LUTH commit to saving lives

Esan Bolaji
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0
World Blood Donor Day: Wema Bank, LUTH commit to saving lives

June 21, 2021. To mark the 2021 ‘World Blood Donor Day-themed “Give blood and keep the world-beating,” staff of Wema Bank, Nigeria’s leading innovative bank, in partnership with the Department of Haematology, Lagos University Teaching Hospital (LUTH) have volunteered to donate blood to affirm the bank’s commitment to helping save lives.

This voluntary blood donation, the second in three years, has seen over 50 staff members take part in the exercise. This year’s edition which took place on Thursday, June 17, 2021, at the Bank’s corporate head office in Marina, Lagos saw over 40 staff taking part, ably aided by staff of LUTH.

World Blood Donor Day

Speaking on the significance of the exercise, Head, Marketing Communications and Investor Relations, Wema Bank, Funmilayo Falola reiterated the importance of blood donation. “To keep the world pulsating, it is important to say that blood connects us all; hence, blood donors have continuously saved lives and improve the health of the world”, she said.

“This purely voluntary initiative is our staff’s way of contributing to the important process of saving lives. For us as a bank, it is an opportunity for us to restate our industry leadership stance beyond financial services by entrenching health consciousness, creating awareness and providing a platform to encourage Nigerians to make timely voluntary blood donation a unique part of their lifestyle”, she added. 

Speaking on behalf of the donor staff, Morolake Phillip-Ladipo, Team Lead, Reputation Management and External Relations, Wema Bank said the World Blood Donor Day which is globally observed every June 14 is very important in the bank’s staff calendar, who excitedly look forward to taking part in the exercise which they hope will help save lives of people in need of blood. 

“It’s that time of the year again. Though, a little anxious, but the thoughts of knowing you are giving blood to save other lives brings you endless joy,” she said. 

Adeyinka Adewale, Chief Medical Laboratory Technician, Department of Haematology & Blood Transfusion, LUTH commended the staff of Wema Bank for their sacrifice, saying it shows that more and more Nigerians are keen on donating blood, and look forward to World Blood Donor Day.

“This type of initiative makes our job as doctors much easier, and we are confident that the blood donated will help save lives. We aim to take this initiative with Wema Bank across the country, partnering with more stakeholders, and we believe that this enthusiasm will help deepen awareness about the importance of blood donation to the healthcare system’, he said. 

The blood donation initiative is part of the bank’s iVolunteer @ Wema Scheme which aims to create opportunities for employees to share their skills, talent, time and resources through volunteering to the cause of humanity and sustainably adding value to the society through health sensitization.

UAE suspends flights from Liberia, Sierra Leone, Namibia

Esan Bolaji
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0
UAE suspends flights from Liberia, Sierra Leone, Namibia

June 21, 2021 – The General Civil Aviation Authority (GCAA) and the National Emergency Crisis and Disasters Emergency Management Authority (NCEMA) have announced the suspension of all inbound flights for national and international carriers coming from Liberia, Sierra Leon, and Namibia, effective 23:59 on Monday, June 21st.

The travel suspension includes inbound transit passengers with the exception of transit flights coming to the UAE and heading to these countries, the GCAA said in a statement on Saturday.

The GCAA indicated that it is required for those coming from Liberia, Sierra Leon, and Namibia through other countries that the period of their stay in the latter countries is not less than 14 days to be allowed access to the UAE. Cargo flights between these countries and the UAE will continue, as usual, the statement added.

uae Average transport fare for bus journey rose by 4.03 per cent in October – NBS

The GCAA affirmed that UAE nationals, their first-degree relatives, diplomatic missions between the UAE and the three countries, official delegations, businessmen’s planes -after getting prior approvals- and golden and silver residency permit holders, in addition to the holders of essential jobs according to the classification of the Federal Authority for Identity and Citizenship (ICA) and the staffs of UAE embassies in the three countries are excluded from this decision, provided that they should take preventive measures that include a mandatory 10-day quarantine and a PCR test at the airport as well as another test on the fourth and eighth days of entering the country.

According to the decision, the period of the required PCR test is reduced from 72 hours to 48 hours, provided that the tests are issued by accredited laboratories and carrying the QR Code.

This comes in response to the proactive precautionary and preventive health measures issued by all authorities concerned in the country to limit the spread of the COVID pandemic-19, the statement added.

The authority called on all travellers affected by the decision to follow up and communicate with the airlines to amend and schedule their flights and to ensure their safe return to their final destinations without any delay or other obligations.

Nigeria Gross Domestic Product : A Soft Recovery With Subtle Headwinds

Vetiva Research
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0
Nigeria Gross Domestic Product : A Soft Recovery With Subtle Headwinds

Following a surprise comeback from the lockdown-induced recession in the last quarter of 2020, the economy expanded by 0.51% y/y (Vetiva: +0.75% y/y) in Q1’21, confirming a recovery from the recession.

On the surface, the recovery appears fragile, given the sub-optimal performance and lingering impacts of the pandemic on some sectors of the economy.

However, we note that in both situations, the corresponding periods were pre-pandemic and thus, high-base periods. While the non-oil sector expanded slightly (+0.79% y/y), the oil sector relapsed (-2.21% y/y).

Sectoral performances: A mixed bag

Assessing the economy from the lens of the agricultural, industrial, and services sectors, the agricultural sector expanded by 2.28% y/y in Q1’21, driven majorly by the development finance initiatives of the Central Bank of Nigeria (CBN), including the Anchor Borrowers Program, which has funded over

2 million projects since inception. With most of these projects targeted at farming, the crop production sub-sector (+2.31% y/y) remains the major driver of output growth in that segment, contributing 88% to agricultural output.

While the agricultural sector exhibited resilience during episodes of downcycles, the Industrial sector was not so lucky. In Q1’21 however, the sector expanded slightly, growing by 0.94% y/y (Q1’20: 2.26% y/y) driven by the expansion in the manufacturing sector (+3.40% y/y). However, this growth was softened by the contraction in the mining and quarrying sector (- 2.19% y/y) and more specifically, the crude petroleum and natural gas sub- sector (-2.21% y/y). We note that despite the strong rebound in oil prices, the mining sector was held back by sustained OPEC production cuts. Although oil production improved 10.3% q/q to 1.72 mb/d, the corresponding output in the previous year (2.07 mb/d) could not be attained due to the existence of OPEC production quotas.

While the mining sector contracted, the Manufacturing (+3.40% y/y) & Construction (+1.42% y/y) sectors expanded. The resilience in the Manufacturing sector was driven by improved volumes from the Food,

Beverage, and Tobacco sub-sector (+7.11% y/y), which was responsible for 96% of the growth in manufacturing output. We believe the stellar performance of the sector is due to increased product offerings to suite the compressed wallets of the lower and middle class, as reflected in the ‘sachetization’ of FMCG products, to drive volumes. This, coupled with the defensive nature of the FMCG sector in recessive periods, enabled the sector to defy the pandemic-induced squeeze on consumer wallets to sail through.

However, unlike the Food, Beverage, and Tobacco sector which benefitted from local demand, the Cement sector (+11.20% y/y) recorded double-digit expansion on the back of healthy export orders.

We note that the sector continues to be a high-flier, consolidating gains from preferential access to the borders before the late reopening of the border last year. The domestic construction sector also expanded (+1.42% y/y), reflecting the impact of budget execution, and renewed private investment in the real estate sector.

While these sectors exhibited resilience, we note the underwhelming performance of the Textile, Apparel, and Footwear sector (-4.53% y/y), despite Nigeria’s compelling population metrics and the glaring clothing demand. The slump in the sector can be attributed to currency adjustments and higher pump prices, which raises the cost of production and makes the sector uncompetitive amid a sustained local appetite for foreign, custom-made products.

While industrial real output increased slightly, the services sector – which constitutes over half of national output – contracted by -0.39%. Unlike the agricultural and industrial sectors, the services sector was a mixed bag as 10 sub-sectors contracted (constituting 61% of services output), while 3 sectors expanded (constituting 38% of services output). The contraction in the services sector was driven majorly by the Trade (-2.43% y/y), Transport & Storage (- 21.89% y/y), Professional Services (-3.84% y/y), Education (-6.20% y/y) and Other Services sectors (-2.95% y/y).

The contraction in the Trade sector reflects the impact of the pandemic on supply chains and protection of critical sectors under the AfCFTA arrangement as well as lower oil exports. We note that the sector is yet to resurrect from the 2016 recession.

The transport sector (-21.89% y/y) continues to reel from pandemic-induced supply chain disruptions, increased remote working activities, higher fuel prices, and insecurity. While air transport (-11.78% y/y) became the next best alternative, the surge in fare prices as a result of the weakness in the naira, stifled growth in the sector. Education (-6.20% y/y), like many other contact-driven sectors, remains aground due to the slow uptake of smart e-learning solutions and dependence on outdated teaching methods.

Bucking its stellar growth trend, the Financial Services sector (-0.46% y/y) contracted marginally, as banks exercised caution over creation of risk assets, despite statutory loan-to-deposit ratio limits and punitive CRR debits. The creation of the Special bills and rise in yield environment must have also influenced rotation into fixed income instruments.

Within the services sector, there were three outperformers, the Information, and Communication sector (+6.47% y/y), the Human health & social services sector (+4.65% y/y), and the Real estate sector (+1.77% y/y). While the ICT sector expanded in Q1’21, we note that this is the slowest expansion in 12 quarters.

We attribute this underwhelming performance to regulatory restrictions on sim registrations over NIN-SIM link registrations. While this restrained the ICT sector from riding on the pandemic-induced change in consumer behavior, the sector still emerged as the largest contributor to GDP. The Human, health & social services sector (+4.65% y/y) was a direct beneficiary of pent-up demand for medical services due to the proliferation of medical outreaches and humanitarian services to improve the wellbeing of individuals.

Finally, the Real Estate sector (+1.77% y/y) expanded for the second time in a row after six quarters of recession, due to renewed investment by the private sector. We note that there are initiatives that could unlock growth in the sector in the near to medium-term, especially as the government plans 300,000 housing units under the Economic Sustainability Plan.

Stronger rebound ahead

In the Agric sector, we believe improved crop production could buoy agricultural output. However, we express cautious optimism, as insecurity, which has stifled farming activities, could slow down output growth in the sector. With the ban on open grazing in several states, this could ease the current pressures on farming activities.

However, the sector could ride on the previous year’s favourable base. Efforts in resolving the subsisting security situation are necessary to de-risk the sector and drive investments. In addition, improved mechanized farming methods and Research & Development must be fulfilled to improve agricultural productivity, as growth in the sector has been underwhelming relative to population growth.

Growth in the industrial sector could ride on the back of private and public investment in the real estate sector and dynamic marketing strategies, which kept the manufacturing sector afloat so far. However, this could be checked by output restrictions in the mining sector. Despite the easing of production cuts, we note that the oil sector may still underperform in Q2’21, due to the continued commitment to OPEC production cuts and delays in the passage of the Petroleum Industry Bill, especially as Nigeria’s biggest oil producer, Shell, plans to offload its Nigerian oil assets.

Thus, implementing reforms would be critical in incentivizing investments in the oil sector. The manufacturing sector could rebound sharply as economic activities move into full swing, with recovering consumer demand and proposed public investment in residential housing. This could dovetail into the real estate sector, amid crowdfunding and other initiatives targeted at improving private investment in real estate.

The services sector could record marginal gains in Q2’21, driven wholly by low- base effects. Given the extension of the NIN-SIM linkage registration deadline

to June 2021, the ICT sector may grow at a slower pace in Q2’21 and expand sharply in the outer quarters. Trade could contract marginally, supported by low base effects and the reopening of the borders.

The transport sector could rebound strongly from pandemic lows in Q2’21 due to less stringent restrictions. However, the surge in transport costs and increased adoption of digital methods could limit potential gains. Growth in the financial services sector could remain subdued by sluggish credit growth given the elevated risk in the operating environment of several businesses.

Ultimately, we anticipate an unusual rebound in the economy, having aced pre- pandemic base periods in the past. Many of the sectors, which were held back by the lockdowns, have had time to scale back to full operations.

However, we anticipate a modest 4.47% y/y recovery in Q2’21 (Q2’20: -6.10% y/y), driven by favorable base effects, definite albeit slower growth in the telecommunications sector, moderate growth in agricultural output and tempered by a slight relapse in the mining sector.

We also factored in the weakness in the naira, higher costs of doing business and slow recovery in high-contact sectors. Furthermore, we expect the rebound to filter into the third and fourth quarters of the year, though at a slower pace.

Barring any shocks from COVID-resurgence in further quarters of the year, we expect FY’21 GDP to grow by 3.13% y/y (FY’20: -1.92% y/y).

Telecoms: FX Scarcity Continues to Bite Hard

CSL Research
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Telecoms: FX Scarcity Continues to Bite Hard

In an interview with Punch media, the President of the Association of Telecommunication Companies of Nigeria (ATCON), Ikechukwu Nnamani, decried the impact of foreign exchange scarcity on the operations of many telecom operators in the country while seeking special intervention from the Central Bank of Nigeria (CBN).

He stated that the association is in active collaboration with the Nigerian Communications Commission (NCC) to hasten the process of securing special consideration from the apex bank. The inability of the telecom operators to source FX from the official window is compelling operators to patronize the black market, leading to increased costs which, under normal circumstances should be passed on to consumers through price increases.

fx scarcity

Despite the covid-19 induced economic headwinds which impacted many sectors negatively, the telecommunications sector proved to be a bright spot at the period of uncertainty and even beyond. The sector recorded real growth of 15.90% in 2020 (vs GDP growth of -1.92%) and 7.7% in Q1 2021 (vs GDP growth of 0.51%).

This performance was driven by the increased use of digital channels for daily routine activities from telecommuting to social engagements. On the flip side, the sector has been plagued by several challenges including FX constraints, eroding consumer purchasing power, and insecurity.

While we acknowledge the need for the government to focus more on sectors that have been badly hit by the pandemic through various interventions, we believe the telecommunication sector should not be left out, given its growing contribution to GDP (11.66% as of Q1 2021).

The telecommunications sector remains one of the fastest-growing sectors in Nigeria’s ailing economy. The lingering impact of FX scarcity may undermine investments by industry operators and players to enhance the quality of network infrastructure, thus limiting broadband penetration. Broadband penetration stood at 40.66% as of April 2021 when compared with the target of 70% by 2025.

Enyo reopens retail station at Isheri, delights customers with free fuel

Esan Bolaji
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Enyo reopens retail station at Isheri, delights customers with free fuel

As part of efforts to extend positive customer service and experience, leading fuel retailing company, Enyo Retail and Supply Limited has reopened its Isheri retail station in Lagos which was initially closed due to road reconstruction. To celebrate this feat, the company gave out free fuel to the delight of customers who visited the station during the early hours after reopening.

With the reopening of the station, Enyo continues to impact small businesses and families in more localities. The innovative customer-driven fuels company also recently celebrated four years of customer support restating its commitment to growth.

Enyo
Lead, Corporate Communications, Enyo Retail and Supply Limited, Arinola Shobande; a customer of Enyo Retail service station Isheri; Sales and Marketing Lead, Enyo Retail and Supply Limited, Habiba Abubakar and Station Manager Enyo Retail service station, Adetola Abayomi Peter; Isheri at the reopening of Enyo service station in Isheri, Lagos recently | Brand Spur Nigeria

Commenting on the event, CEO Enyo Retail and Supply, Yomi Awobokun said,

‘‘Our customers are a core part of what we do at Enyo. They have been loyal to us through the years. This is a token in appreciation of their support and to inform them that there are better even days ahead with Enyo. We thank the people of Isheri for welcoming us back as we continue to provide them with great service to support their businesses and lifestyle’’

Enyo is one of the fastest-growing fuel retailers in Nigeria and a pioneer of the technology revolution in the downstream oil and gas sector. The company has more than 90 retail outlets across 19 states in Nigeria and continues to drive good customer service in fuels retailing and renewable energy products in Africa.

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