First Bank of Nigeria, one of Nigeria’s oldest and leading banks has been working on satisfying the needs of customers for decades with different schemes and initiatives created to address the needs and challenges of those who bank with them.
The First Bank of Nigeria has loan products that account holders of the bank can benefit from and one of such is the personal loan for salary account. The Personal Loan against salary structure is designed to help you cover pressing financial obligations and needs before pay-day arrives.
It helps solves money issues that salary earners might be facing due to lack of money at hand for both major and minor issues and expenses.
Here Is What You Need To Know About First Bank Loan:
You get up to 36 months repayment option, subject to a retirement age of 60 years and the Repayment Structure is Flexible.
Your Salary account must be domiciled with First Bank for the period the facility is in place and the loan offers flexible repayment structure
You may be thinking about what it takes to apply to become a beneficiary of this program. The good news is here are the documents you need to have in order to apply:
Confirmation of applicant’s employer on FBN approved list
Letter of irrevocable domiciliation of salary for the duration of the facility.
After all, these documents have been gathered and you have completed the form, you submit them at the nearest First Bank branch for processing.
These are all that is required of you in order to access the First Bank Personal loan and good luck on your application for funds to cater to your needs.
Unilever Nigeria Plc recorded double-digit growth of 46% YoY to N19.45bn in Q1 2021 from 13.33bn in Q1 2020 according to its recently released financial statements.
However, the cost of sales grew faster by 51% to N14.95bn from N9.90bn in Q1 2020. Nonetheless, gross profit grew by 31% YoY to N4.48bn in Q1 2021 from N3.43bn in Q1 2020.
In Q1 2021, operating expenses rose by 58% YoY to N4.64bn from N2.95bn in Q1 2020 owing to higher marketing and administrative expenses. Consequently, the Group recorded an operating loss of N165mn in Q1 2021, from an operating profit of N453mn in Q1 2020.
Unilever’s profitability deteriorated to a loss before tax of N13mn in Q1 2021 from a profit before tax of N948mn in Q1 2020, on the back of a 69% YoY decline in net finance income to N152mn in Q1 2021 from N495mn in Q1 2020.
Revenue Growth Underpinned by Branding and Marketing Efforts
Further analysis of revenue according to its operating segments showed that the Household and Personal Care grew by 53% YoY to N9.03bn in Q1 2021 from N5.92bn in Q1 2020. Also, Food products, the highest contributor to revenue, grew by 40% YoY to N10.40bn in Q1 2021 from N7.41bn in Q1 2020. The breakdown of marketing and administrative expense revealed a 63% increase in brand and marketing cost to N1.31bn in Q1 2021 from N800mn in Q1 2020. We believe the increase in brand marketing cost factored in the double-digit growth across all operating revenue segments.
Operating expense rose by 58% YoY to N4.64bn in Q1 2021. Notably, selling and distribution expenses grew by 36% YoY to N838mn in Q1 2021 from N617mn in Q1 2020. Although the selling and distribution expenses increased, the margin improved marginally to 4% in Q1 2021 from 5% in Q1 2020.
Also, marketing and administrative expense grew by 63% YoY to N3.80bn in Q1 2021 form N2.33bn in Q1 2020 on the back of higher overheads and branding costs.
The overall operating expense Margin worsened by 200 basis points to 24% in Q1 2021 froM 22% in Q1 2020. As a result of the increased operating cost Margin, operating profit Margin contracted to a -1% in Q1 2021 froM 3% in Q1 2020 which translated to the loss recorded in the period under review.
Weak Net Finance Income Worsens Bottomline Loss Position
Net finance income contracted by 69% to N152mn in Q1 2021 from N495mn in Q1 2020. Specifically, the contraction in net finance income was driven by a 62% decline in interest on call deposits and bank accounts to N21mn in Q1 2021 (Q1 2020: N214mn). Therefore, the combination of the weak net finance income and the effect of the operating loss, effectively worsened the Group’s bottomline.
Other News
The Group declared its intention to separate its global tea business including the retail and food solutions businesses, plantations, T2, and Puka (the “Tea Business”). Subject to regulatory approvals, the Nigerian Tea Business would be transferred to a newly incorporated tea company in Nigeria (“New TeaCo”), held under a newly incorporated tea holding company to create a dedicated tea group within the Unilever Group (“TeaCo Group”).
Unilever Nigeria Slips Into A Loss Position Despite Impressive Revenue Growth-Brand Spur Nigeria
Outlook
We note Unilever’s effort in reMaining coMpetitive as witnessed by the growth in revenue. Yet, the Group still struggles with cost pressures aMid the MacroeconoMic challenges. We revised the revenue growth estiMate froM 5% to 27% in FY 2021 on the assUMPtion of price increases. We also posit that the Group would intensify its cost ManageMent efforts towards realising the gains froM revenue growth. Hence, we expect a rebound to profitability and estiMate a profit after tax of N1.46bn for FY 2021.
Using a blend of Discounted Cash Flow, Discounted Dividend, Residual IncoMe, and EV/EBITDA valuation Methodologies, we arrived at a revised fair value of N9.76 (previously: N9.48). At the stock’s current Market price of N11.90, the total return estiMate stands at -17%. Hence, we believe that the stock is currently overvalued and recoMMend SELL.
June 4, 2021: As Nigeria marks 22 years of unbroken civilian rule, leading innovative financial institution, Wema Bank, is celebrating the occasion with its customers by rewarding them with cash gifts, airtime, and other mouth-watering prizes through its *945# Democracy Campaign.
For the next 8 days, Wema Bank customers and others interested in joining the happy *945# family will win the cash prize, airtime and branded gift items.
The *945# Democracy Campaign does not exclude members of the bank’s online community, as they would also be able to win exciting giveaways on all Wema social media pages by simply turning on their notification to get daily updates.
Two new customers who just came on the *945# platform within these 8 days and are transacting will win a cash prize of ₦50,000 each. Performing different transactions on *945#will earn customers airtime and other gift items.
Also, 100 hundreds of customers who carry out different transactions on *945# within the promo duration will win.
Commenting on the campaign, Head, Marketing Communications & Investor Relations, Wema Bank, Funmilayo Falola, said it was to celebrate with customers ahead of the official June I2 Democracy Day.
She explained that customers would win fantastic prizes on each day of the campaign from activities including opening account, reactivating account and transactions on *945# will be rewarded.
Falola added that as Wema Bank continues its 76th anniversary, it will unveil more customer loyalty reward programmes for its esteemed customers.
The revolutionary products were unveiled at a launch event held on Friday, June 4, 2021, at the Tech Experience Centre, located at 13 Idowu Martins, Victoria Island, Lagos.
The Huawei IdeaHub series is an intelligent endpoint that integrates multiple functions, including multi-screen collaboration between mobiles and PCs, interactive whiteboard, remote collaboration, FHD video conferencing and built-in HD AppGallery, Furthermore, the IdeaHubis a brand new productivity tool designed by Huawei to create an all-scenario smart office.
It aims to bring digital to every meeting room and open office, promoting office and production efficiency for enterprises in need of the most advanced networking infrastructure needs.
Also, the Huawei IdeaHub Series offers both 65-inch and 86-inch options. It can be installed on a mobile stand or wall in a variety of environments, including enterprise conference rooms, executive board rooms, open office, and even home office rooms. Its excellent performance and flexible deployment provide an intelligent office and team collaboration for every working space.
Huawei IdeaHub debuts multiple cutting-edge technologies of the industry, such as intelligent display, intelligent handwriting recognition, acoustic baffle and speaker tracking. In addition, its built-in AppGallery creates a wide range of benefits. First, they aggregate massive enterprise office and production applications. Second, they satisfy the enterprises demand of collaborative offices, R&D, and production. Finally, they support low-cost and easy deployment and use.
Further elevating the utility of the Huawei IdeaHub is a dual-chip kernel developed by Huawei to provide powerful graphics and AI processing capabilities. It has a 4K touchscreen with a precision of ±0.1 mm and its professional 4K camera supports ultra-HD video of 4K 30 FPS.
The 12 microphone arrays pick up sound within 8 m and have 0.5° source localization for sounds. In addition, a powerful hardware configuration coupled with a sleek technical design sets a new trend for enterprise upgrades of intelligent offices.
The IdeaHub series will appeal to a burgeoning Enterprise market in Nigeria and beyond, which Huawei hopes to access through TD Africa’s wide reach and growing partner database.
The innovation mirrors Huawei’s all-scenario smart office strategy – 1+3+X, which provides enterprise users a new productivity tool to actualize this smart office.
Further illustrated, 1 indicates the office digitization and enterprise reconstruction based on Huawei Unified Platform on Huawei Cloud or On-Premise deployment; 3 refers to three types of intelligent collaboration endpoints: the first type is the video conferencing endpoints ranked No. 1 in the Chinese market for seven consecutive years, the second is the newly released IdeaHub series, which is designed for team collaboration and the third is the Intelligent Desktop series, which will be available in coming months; while X represents open cooperation and ecosystem construction for both software and hardware.
There has been quite some fuzz about the striking prospect of the cement sector and its dominant players, given the anticipation of some tailwinds. There are two ways to dimension the positive industry outlook, consisting of various overlapping drivers.
Firstly, there is the infrastructure narrative. Larger spending on infrastructural projects will lift the sales of cement, given the crucial role it plays in various construction activities. Hence, the attractiveness of the industry’s outlook feeds off reasonable expectations of larger spending on infrastructure by both the private and public sector, given the drive to close the country’s infrastructure deficit.
Moody’s, a leading rating agency, estimates the deficit at $3 trillion. The 2021 appropriation bill offered an early signal as to the improved commitment of the government to tackle this infrastructure problem, which should translate to an uptick in cement consumption.
The bill proposed a record amount to be allotted to capital expenditure within the year, as the N4.12 trillion proposed is significantly higher than the budgeted Capex in the last decade. While one must nest some level of concern regarding the historical Capex budget performance, the base-case scenario puts the Capex performance for 2021 at about 50% (or N2.06 trillion), which would still bode well for the cement producers.
In addition, in examining the actual amount spent on capital expenditure between 2016 and 2019, one would observe that the anticipated impact on the performance of the cement sector is well evidenced in the time frame. Hence, in years when larger amounts went into Capex, the cement sector recorded an improvement in its real growth rate, and the reverse was witnessed in years where there was a drop in Capex.
Secondly, the GDP growth numbers tell a story. In examining the movement trend of the construction, real estate, and cement sectors, one would notice some degree of correlation.
The relationship between these three sectors was pronounced during the 2020 pandemic, as the shuttering impact of Covid-19 on the construction and real estate sectors became visible in the cement sector performance for Q1’2020. Likewise, a recovery was recorded in all three sectors in the later quarters of the year.
Accordingly, when there is a slowdown in the construction and real estate sectors, this would translate into a weaker performance in the cement sector, as cement serves as a necessary input for the other operations of both sectors. 2021 has started off on a positive note for all three sectors, and we expect this trend to persist, on the back of an anticipated broad-based economic recovery.
Notes from the fortune cookie
After elucidating the broad macro-outlook for the cement sector, it is important to note that all three listed cement producers are well poised to benefit from this positive outlook. However, we still have a few concise but interesting insights on each player.
Note 1: WAPCO (for the patient) – The stock is the most attractively priced of all three stocks, and our fair value estimate of N28.11 gives an upside opportunity of 37.12% at the current market price.
The caveat here is the patience required. The historical price trend of Wapco shows some stickiness as the price approaches N30.00. Over the last year, the stock price touched the N30.00 mark only a few trading sessions in January 2021. Nevertheless, corporate restructuring moves particularly with respect to its balance sheet optimization, and cost reduction strategies have continued to bode well for Wapco.
Despite its relatively attractive valuation, the stock price has remained sticky; hence, a buy strategy on this stock has to be of a long-term play.
Note 2: Buacement (for the bold) – Buacement is trading the farthest away from its intrinsic value, and the stocks are only attractive to risk loving investors that have a deep interest in technical signals and apathy towards fair value estimates.
To put this in better perspective, the stock has a price-to-earnings ratio of 35.54x, as against the industry average of 19.40x. The stock has been up to a rocky fundamental start since its listing, after it carried out a 1 for 1 share conversion, equating old shares of CCNN worth N18.01 per share to the new shares of Buacement priced at N35.00.
Our fair value estimate for the stock is N41.92, which means that the stock is trading at a 43.35% premium to its intrinsic value. The stock is well overpriced from a fundamental standpoint, but remains attractive to technical traders, as the relative strength index is slightly above the oversold region, at 46.95.
Note 3: Dangcem (for the bulls) – The price of Dangote Cement climbed above N200 due to one major driver, and that is the share buyback program commenced in December 2020. The program sought to buy back up to 10% of the company’s issued 10.04 billion ordinary shares, but the cement giant ended up buying just 0.24% in the first tranche.
With the recent renewal of the share buyback program, interested investors in Dangote Cement have very bullish expectations as to the impact of the next tranche of the buyback program. Given the attractiveness of its fundamentals and the sector outlook, our fair value estimate is put at N236.16.
However, this gives a little upside opportunity of 7.35%. Dangote Cement remains in the hold region in our books, but the temptation to buy would mostly arise from optimism around a buyback program that still has no definite timeline.
The Guild of Professional Bloggers of Nigeria (GPBN) has watched with deep interest unfolding events of the past 2-days since the ban by the Federal Government (FG) of the use of social media handle, Twitter in the country.
The Bloggers Guild views with dismay this government action which defeats the purpose of true democracy and freedom of speech which Nigeria preaches among the comity of nations.
As Professional Bloggers, we see Twitter as a veritable Platform that has engaged lots of young Nigerians in the private sector and contributed to reducing the economic burden of our youths amidst increasing unemployment in the land.
Photo by Claudio Schwarz
The army of young, enterprising and dynamic Nigerians who have been promoting their entrepreneurial skills through the Platform are now being shut out by the government which sworn to promote youths development.
We, therefore, express our disapproval of such an unpopular decision and urge the government to rescind the ban.
We think the ban of Twitter as a means of communication in Nigeria at any time, will further expose millions of Nigerians particularly the youths, to more economic hardship. This is because small, medium and large scale businesses derive advertising sales and income from promotions using Twitter.
In a country where the unemployment rate keeps rising daily, young Nigerian Graduates for instance through their industrious spirit have mostly stopped searching for paid employment or expect social benefits from the government but through social media platforms like Twitter, have been able to create jobs and are making progress with their lives without government support.
Banning Twitterequally exposes Nigerians to higher security risks at a time the use of Twitter as a social tool has been helping to expose crimes and criminals.
At a time heinous crimes like banditry, kidnapping, cultism, ritual killings and robbery have become daily occurrences, Twitter and other social media platforms have been used to track criminal activities and assisted security agents to follow tracks when useful information are given by the public.
We recall the recent tracking of a suspected ritualist, Uduak Frank Akpan in Uyo, Akwa Ibom State whose criminal activities were exposed following numerous Tweets that led to his arrest after he reportedly killed a job seeker, Iniobong Umoren.
If a Platform Twitter wasn’t available at that time, getting swift action would have taken much longer.
Through Twitter, we are aware that government agencies like EFCC, the Police unit and others security apparatus have also been able to track criminals and brought them to book.
The benefits of this social means of communication are therefore too numerous to recount.
The huge outcry that has followed the ban shows the immeasurable benefits the teeming Nigerian population derive from using social media and how it would be callous, evil and disdainful to allow this suspension to continue.
Not only would a continued ban utterly affect the legitimate source of living for many, but it would also hinder communication even for the government ministries, departments and agencies.
Most government MDAs have employed social media influencers who communicate activities of government and get all time feedback using Twitter.
The NCDC for instance has been able to reach millions of Nigerians with all-time fast messages on the COVID-19 pandemic using Twitter.
The Guild is therefore appealing to FG to reconsider its action for the greater and common good of Nigeria among the comity of nations with progressive democracy.
The National Bureau of Statistics (NBS) has revealed that the value of total trade was 6.99% higher in Q1 2021 compared to Q4 2020 and 14.13% higher than the value recorded in Q1, 2020.
According to the recent data, which provides the breakdown of Nigeria’s total imports and exportshows that the value of total imports rose by 15.61% in Q1, 2021 compared to Q4, 2020 and 54.30% compared to Q1, 2020.
For the first quarter of 2021, Nigeria’s total merchandise trade stood at N9,757.87billion representing a 6.99% increase over the value recorded in Q4,2020 and 14.13% compared to Q1,2020.
Further analysis by Brand Spur revealed that the export component of this trade stood at N2,907.21 billion, representing 29.79% of the total trade while import was valued at N6,850 billion representing 70.21%. The higher level of imports over exports resulted in a trade deficit (in goods) of -N3,943.45 billion.
Photo by Erwan Hesry
The value of Crude oil export stood at N1,929.83 billion representing 66.38% of the total export recorded in Q1, 2021, while non-crude oil export accounted for 33.62% of the total export.
Key import highlights
The value of imported agricultural products were 18.37% higher in Q1, 2021 than in Q4, 2020 and 140.47% higher year on year.
The value of Raw material imports fell by 6.50% in Q1, 2021 compared to Q4, 2020 but increased by 109.29% compared to Q1, 2020.
The value of Solid minerals imports was 36.97% higher in Q1, 2021 than in Q4, 2020 and 59.26% more than its value in Q1, 2020.
The value of Energy goods imports was 34.39% in Q1, 2021 higher than in Q4,2020 and 1,346.72% higher than the value recorded in Q1, 2020.
The value of imported manufactured goods grew by 18.47% in Q1, 2021 against the value recorded in Q4, 2020 and 69.70% against its value in Q1, 2020.
The value of other oil products imported in Q1, 2021 was 19.02% more than its value in Q4, 2020 but 15.76% less than the corresponding quarter of 2020.
Exports
The value of total exports in Q1, 2021 decreased by 8.99% against the level recorded in Q4, 2020 and 29.26 % compared to Q1,2020
The value of agricultural exports increased by 128.0% in Q1 2021 compared to Q4 2020 and 0.1% compared to Q1 2020.
The value of Raw material goods exports in Q1, 2021 was 9.0% lower than the value in Q4,2020 and 6.7% lower than the value recorded in Q1 2020
Photo by Andy Li on Unsplash
The value of solid minerals exports increased by 107.2% in Q1,2021 against Q4 2020 and 481.7% against the corresponding quarter in 2020.
The exports of Energy goods increased in value by 16.3% in Q1 2021 compared to Q4 2020 and 18.1% compared to Q1,2020
The value of Manufactured goods exports rose by 94.0% in Q1 2021 compared to Q4 2020 but decreased by 43.7% compared to Q1, 2020.
The value of Crude oil exports in Q1 2021 decreased by 23.5% compared to Q4,2020 and 34.5% compared to Q1,2020
The export value of Other oil products increased by 25.5.% in Q1 2021 compared to Q4 2020 and rose marginally 0.1% compared to Q1 2020.
Major export trading partners and percentage share in Q1, 2021 export trade.
India
16.79%
Spain
9.88%
China
6.54%
Netherlands
5.50%
France
4.59%
Major import trading partners and percentage share in Q1, 2021 import trade
China
29.34 %
Netherlands
10.60%
United States
8.88%
India
8.60%
Belgium
3.48%
Imports Classified by Standard International Trade Classification and country of Origin
In Q1 2021, the total import was valued at N6,850 billion representing 70.21% of the total trade. This value rose by 15.61% in Q1, 2021 compared to Q4,2020 and 54.30% compared to Q1,2020.
Imports by SITC revealed that Machinery & transport equipment accounted for N2,492.73billion. This was followed by Chemicals & related products N1,302.82 billion and Mineral fuel N981.68 billion.
Import trade classified by region showed Asia as the dominant originating region with a record of N3,319.4 billion or 48.45%. This was followed by Europe with N2,471.6 billion or 36.08%, America N827.8 billion or 12.08%, Africa N183.4billion or 2.68% and Oceania N48.5billion or 0.71%. Out of the value recorded for Africa, Import from ECOWAS countries accounted for N20.8 billion.
Analysis of imports by Country of Origin by Brand Spur showed that the majority of the goods imported during the quarter originated from China, valued at N2,009.94 billion or 29.34%. This was followed by the Netherlands (N726.09 billion or 10.60 %), the United States (N608.12 or 8.88%) and others.
Exports Classified by Standard International Trade Classification and Country of Destination
In Q1 2021, the value of total exportsstood at N2,907.21 billion, representing 29.79% of total trade. This value represented a decline of 8.99% against the level recorded in Q4 2020 and 29.26 % compared to Q1 2020.
Exports by section revealed that Nigeria exported mainly mineral products, valued at 2,486.1 billion, or 85.52% of the total export value. This was followed by Vehicles, Aircraft and parts (N180.5 billion or 6.21%) and vegetable products (N82.3billion or 2.83%).
In terms of regional trade, Nigeria exported most products to Asia (N1,132.55 billion), Europe (N997.79 billion), America (N316.62 billion) and Africa (N449.84 billion). During the quarter goods worth N282.2 billion was exported to ECOWAS. By country, most goods were exported to India (N488.1 billion or 16.8%), Spain (N287.2billion or 9.9%), China (N190.1 billion or 6.5 %) and the Netherlands (N160.billion or 5.5%).
Export/Imports Products Classified by Sectors Q1, 2021
Agricultural Goods Sector
The total value of trade in agricultural goods in Q1 2021 stood at N757.4 billion. The export component of this trade totalled N127.2 billion while the import was valued at N 630.2 billion.
Top exported Agricultural products were Sesamum seeds exported mainly to China (valued at N23.1 billion), Japan (N8.3billion) and Turkey (N3billion). This was followed by well-fermented cocoa beans exported to the Netherlands (N9.2billion), Malaysia (N5.5billion) and the United States (N3.2 billion).
Other major exports under this sector include Cashew nuts in shell exported to Vietnam and India worth, N5.3billion N5.1 billion respectively.
However, there was importation of Durum wheat (not in seed) worth N66.97 billion from Lithuania. Durum wheat also came from Latvia (N41.51 billion), Canada (N41.31billion) etc. Edible mixtures or preparation of animal, worth N82.86billion, was imported from Denmark. Herrings (Clupea haregus, Clupea pallasii) was imported from Russia (N15.8billion) and Netherlands (N14billion).
Solid Minerals Sector
The total value of trade in solid mineral goods in Q1 2021 stood at N49.5billion. The export component of this trade stood at N9.3 billion while the import was valued at N40.2billion. The leading exported mineral products were Other cement exported to the Niger Republic and Togo worth N2.7billion and N1.3billion respectively. Lead ores and Concentrates worth N2.9 billion were exported to China, as were Zinc ores and Concentrates worth N0.8billion.
In terms of imports, Plasters of Calcined Gypsum sulphate was imported from Turkey and Egypt, worth N8.9billion and N3.5 billion. Gypsum anhydrite was also imported from Spain and Turkey, valued at N5.8billion and N3.4billion respectively. Others were Crude salt worth N4.5billion imported from Brazil etc.
Manufactured Goods Sector
The value of manufactured goods trade in Q1 2021 stood at N4,782.7billion representing 49.01% of total trade. Out of this, the export component accounted for N250.4billion while the import component was valued at N4,532.4billion.
The products that drove up Manufactured products were Helicopters of Unladen weight exceeding 2000kg which was exported to Ghana, at a value of N71.1billion. Vessels and other floating structures for breaking up were exported to the United Kingdom and Cameroon, worth N38.9billion and N17.6billion.
Other products were Floating or Submersible drilling platform exported to Equatorial Guinea, at a value of N39.5billion, and storage units worth N31.3billion exported to Ghana.
In terms of Manufactured imports, other antibiotics were mainly imported from the Netherlands and India worth N329.2billion and N43.3billion. Used vehicles, worth N140.2billion, was imported from the United States.
Motorcycles worth N30.98billion and N86.67 billion from China and India, and Machines for the reception of voice, worth N75.1 billion and N21.8billion from China and Hong Kong. Other imports under this category were parts of Machinery for working rubber or plastics worth N67.8billion imported from India.
Raw Material Goods Sector
The value of total trade in raw material stood at N711.8billion, accounting for 7.3% of total trade. The import component was valued at N669.2billion while the export component stood at N42.7billion.
Urea, whether or not in aqueous solution, worth N16.8 billion was exported to Brazil, Leather further prepared after tanning was exported to Spain and Italy, valued at N6.6billion and N1.0billion respectively. Cotton, not carded or combed, worth N1.9 billion was also exported to Pakistan.
In terms of imports, Cane sugar worth N88.9billion was imported from Brazil, Mixtures of Odoriferous substance valued at N15.5 billion and N8.0 billion were imported from Ireland and Swaziland, while Milk preparation worth N18.4billion and N7.8billion were imported from Ireland and Malaysia during the period under review.
Trade Intensity in Q1 2021
Export Intensity Index with Five Major Trading Partners
The export intensity index compares the share of exports to each country in Nigeria’s total exports, with the share of world exports going to that country, and therefore gives a measure of the importance of that country to Nigeria as an export destination. A higher number denotes a stronger relationship, and an index of one indicates that exports to that country are what would be expected given global trade patterns.
In Q1 2021, Nigeria had intense export trade with India (6.0, 3.97, 4.37), Spain (3.64,5.61, 1.94) and the Netherlands (1.04, 1.06 and 1.14). This is shown by the higher index recorded during the quarter. However, lower export intensities were recorded for China (0.45, 0.39, 0.46) and France (0.82, 0.83 except in March where France recorded 1.18. This can be attributed to the nature of the product mix exported during the quarter.
Import Intensity Index with five Major Trading Partners
During the quarter, the import intensity index of Nigeria with the top importing partners (China, the Netherlands, India and Belgium) were higher in all months. China recorded 1.7, 1.5 and 2.0 in January, February and March. Higher indices were also recorded for the Netherlands (1.0, 4.4 and 1.0), India (3.4, 5.1 and 4.2), Belgium (1.0, 1.3 and 1.4) while the United States registered lower intensities of 0.9 and 0.6 for January and February except in March where it recorded 1.3.
Trade by Mode of Transport
The majority of commodity exported out of Nigeria were transported by water. This was reflected in the value of exports by water in Q1 2021. Water transport accounted for N2,822.5billion or 97.09% of total exports. Air transport contributed N75.9billion or 2.61%, Road transport was valued at N3.7billion or 0.13% while other transport was valued at N5.0 billion or 0.17%.
Similarly, for imports, most goods brought into the country arrived via water transportation means. Water transport accounted for N6,056.6billion or 88.4% of the value of total imports. Other modes of transport were air and road, responsible for goods valued at N765.3billion or 11.17% and N28.8billion or 0.4% respectively.
Trade by Custom Ports and Post
In Q1 2021, the bulk of export transactions was conducted through Apapa port, with goods valued at N2,584.7billion or 88.91% of total exports. This was followed by Port Harcourt (3) which recorded N167.29billion or 5.75% while Muhammed Murtala International recorded N75.4 billion or 2.5%.
In terms of imports, Apapa Port also recorded the highest transactions valued at N2,927.1billion or 42.73% of total imports. This was followed by Tin Can Island N1,229.43billion or 17.95%, Port Harcourt (3) N691.7billion or 10.10%, while Muhammed Murtala Cargo recorded N625.7billion or 9.13% of total imports.
The National Bureau of Statistics (NBS) has revealed that the value of total trade was 6.99% higher in Q1 2021 compared to Q4 2020 and 14.13% higher than the value recorded in Q1, 2020.
According to the recent data from the bureau, which provides the breakdown of Nigeria’s total imports and exportshows that the value of total imports rose by 15.61% in Q1, 2021 compared to Q4, 2020 and 54.30% compared to Q1, 2020.
For the first quarter of 2021, Nigeria’s total merchandise trade stood at N9,757.87billion representing a 6.99% increase over the value recorded in Q4,2020 and 14.13% compared to Q1,2020.
Photo by Erwan Hesry
Further analysis by Brand Spur revealed that the export component of this trade stood at N2,907.21 billion, representing 29.79% of the total trade while import was valued at N6,850 billion representing 70.21%. The higher level of imports over exports resulted in a trade deficit (in goods) of -N3,943.45 billion.
The value of Crude oil export stood at N1,929.83 billion representing 66.38% of the total export recorded in Q1, 2021, while non-crude oil export accounted for 33.62% of the total export.
Key import highlights
The value of imported agricultural products were 18.37% higher in Q1, 2021 than in Q4, 2020 and 140.47% higher year on year.
The value of Raw material imports fell by 6.50% in Q1, 2021 compared to Q4, 2020 but increased by 109.29% compared to Q1, 2020.
The value of Solid minerals imports was 36.97% higher in Q1, 2021 than in Q4, 2020 and 59.26% more than its value in Q1, 2020.
The value of Energy goods imports was 34.39% in Q1, 2021 higher than in Q4,2020 and 1,346.72% higher than the value recorded in Q1, 2020.
The value of imported manufactured goods grew by 18.47% in Q1, 2021 against the value recorded in Q4, 2020 and 69.70% against its value in Q1, 2020.
The value of other oil products imported in Q1, 2021 was 19.02% more than its value in Q4, 2020 but 15.76% less than the corresponding quarter of 2020.
Exports
The value of total exports in Q1, 2021 decreased by 8.99% against the level recorded in Q4, 2020 and 29.26 % compared to Q1,2020
The value of agricultural exports increased by 128.0% in Q1 2021 compared to Q4 2020 and 0.1% compared to Q1 2020.
The value of Raw material goods exports in Q1, 2021 was 9.0% lower than the value in Q4,2020 and 6.7% lower than the value recorded in Q1 2020
Photo by Andy Li on Unsplash
The value of solid minerals exports increased by 107.2% in Q1,2021 against Q4 2020 and 481.7% against the corresponding quarter in 2020.
The exports of Energy goods increased in value by 16.3% in Q1 2021 compared to Q4 2020 and 18.1% compared to Q1,2020
The value of Manufactured goods exports rose by 94.0% in Q1 2021 compared to Q4 2020 but decreased by 43.7% compared to Q1, 2020.
The value of Crude oil exports in Q1 2021 decreased by 23.5% compared to Q4,2020 and 34.5% compared to Q1,2020
The export value of Other oil products increased by 25.5.% in Q1 2021 compared to Q4 2020 and rose marginally 0.1% compared to Q1 2020.
Major export trading partners and percentage share in Q1, 2021 export trade.
India
16.79%
Spain
9.88%
China
6.54%
Netherlands
5.50%
France
4.59%
Major import trading partners and percentage share in Q1, 2021 import trade
China
29.34 %
Netherlands
10.60%
United States
8.88%
India
8.60%
Belgium
3.48%
Imports Classified by Standard International Trade Classification and country of Origin
In Q1 2021, the total import was valued at N6,850 billion representing 70.21% of the total trade. This value rose by 15.61% in Q1, 2021 compared to Q4,2020 and 54.30% compared to Q1,2020.
Imports by SITC revealed that Machinery & transport equipment accounted for N2,492.73billion. This was followed by Chemicals & related products N1,302.82 billion and Mineral fuel N981.68 billion.
Import trade classified by region showed Asia as the dominant originating region with a record of N3,319.4 billion or 48.45%. This was followed by Europe with N2,471.6 billion or 36.08%, America N827.8 billion or 12.08%, Africa N183.4billion or 2.68% and Oceania N48.5billion or 0.71%. Out of the value recorded for Africa, Import from ECOWAS countries accounted for N20.8 billion.
Analysis of imports by Country of Origin by Brand Spur showed that the majority of the goods imported during the quarter originated from China, valued at N2,009.94 billion or 29.34%. This was followed by the Netherlands (N726.09 billion or 10.60 %), the United States (N608.12 or 8.88%) and others.
Exports Classified by Standard International Trade Classification and Country of Destination
In Q1 2021, the value of total exportsstood at N2,907.21 billion, representing 29.79% of total trade. This value represented a decline of 8.99% against the level recorded in Q4 2020 and 29.26 % compared to Q1 2020.
Exports by section revealed that Nigeria exported mainly mineral products, valued at 2,486.1 billion, or 85.52% of the total export value. This was followed by Vehicles, Aircraft and parts (N180.5 billion or 6.21%) and vegetable products (N82.3billion or 2.83%).
In terms of regional trade, Nigeria exported most products to Asia (N1,132.55 billion), Europe (N997.79 billion), America (N316.62 billion) and Africa (N449.84 billion). During the quarter goods worth N282.2 billion was exported to ECOWAS. By country, most goods were exported to India (N488.1 billion or 16.8%), Spain (N287.2billion or 9.9%), China (N190.1 billion or 6.5 %) and the Netherlands (N160.billion or 5.5%).
Export/Imports Products Classified by Sectors Q1, 2021
Agricultural Goods Sector
The total value of trade in agricultural goods in Q1 2021 stood at N757.4 billion. The export component of this trade totalled N127.2 billion while the import was valued at N 630.2 billion.
Top exported Agricultural products were Sesamum seeds exported mainly to China (valued at N23.1 billion), Japan (N8.3billion) and Turkey (N3billion). This was followed by well-fermented cocoa beans exported to the Netherlands (N9.2billion), Malaysia (N5.5billion) and the United States (N3.2 billion).
Other major exports under this sector include Cashew nuts in shell exported to Vietnam and India worth, N5.3billion N5.1 billion respectively.
However, there was importation of Durum wheat (not in seed) worth N66.97 billion from Lithuania. Durum wheat also came from Latvia (N41.51 billion), Canada (N41.31billion) etc. Edible mixtures or preparation of animal, worth N82.86billion, was imported from Denmark. Herrings (Clupea haregus, Clupea pallasii) was imported from Russia (N15.8billion) and Netherlands (N14billion).
Solid Minerals Sector
The total value of trade in solid mineral goods in Q1 2021 stood at N49.5billion. The export component of this trade stood at N9.3 billion while the import was valued at N40.2billion. The leading exported mineral products were Other cement exported to the Niger Republic and Togo worth N2.7billion and N1.3billion respectively. Lead ores and Concentrates worth N2.9 billion were exported to China, as were Zinc ores and Concentrates worth N0.8billion.
In terms of imports, Plasters of Calcined Gypsum sulphate was imported from Turkey and Egypt, worth N8.9billion and N3.5 billion. Gypsum anhydrite was also imported from Spain and Turkey, valued at N5.8billion and N3.4billion respectively. Others were Crude salt worth N4.5billion imported from Brazil etc.
Manufactured Goods Sector
The value of manufactured goods trade in Q1 2021 stood at N4,782.7billion representing 49.01% of total trade. Out of this, the export component accounted for N250.4billion while the import component was valued at N4,532.4billion.
The products that drove up Manufactured products were Helicopters of Unladen weight exceeding 2000kg which was exported to Ghana, at a value of N71.1billion. Vessels and other floating structures for breaking up were exported to the United Kingdom and Cameroon, worth N38.9billion and N17.6billion.
Other products were Floating or Submersible drilling platform exported to Equatorial Guinea, at a value of N39.5billion, and storage units worth N31.3billion exported to Ghana.
In terms of Manufactured imports, other antibiotics were mainly imported from the Netherlands and India worth N329.2billion and N43.3billion. Used vehicles, worth N140.2billion, was imported from the United States.
Motorcycles worth N30.98billion and N86.67 billion from China and India, and Machines for the reception of voice, worth N75.1 billion and N21.8billion from China and Hong Kong. Other imports under this category were parts of Machinery for working rubber or plastics worth N67.8billion imported from India.
Raw Material Goods Sector
The value of total trade in raw material stood at N711.8billion, accounting for 7.3% of total trade. The import component was valued at N669.2billion while the export component stood at N42.7billion.
Urea, whether or not in aqueous solution, worth N16.8 billion was exported to Brazil, Leather further prepared after tanning was exported to Spain and Italy, valued at N6.6billion and N1.0billion respectively. Cotton, not carded or combed, worth N1.9 billion was also exported to Pakistan.
In terms of imports, Cane sugar worth N88.9billion was imported from Brazil, Mixtures of Odoriferous substance valued at N15.5 billion and N8.0 billion were imported from Ireland and Swaziland, while Milk preparation worth N18.4billion and N7.8billion were imported from Ireland and Malaysia during the period under review.
Trade Intensity in Q1 2021
Export Intensity Index with Five Major Trading Partners
The export intensity index compares the share of exports to each country in Nigeria’s total exports, with the share of world exports going to that country, and therefore gives a measure of the importance of that country to Nigeria as an export destination. A higher number denotes a stronger relationship, and an index of one indicates that exports to that country are what would be expected given global trade patterns.
In Q1 2021, Nigeria had intense export trade with India (6.0, 3.97, 4.37), Spain (3.64,5.61, 1.94) and the Netherlands (1.04, 1.06 and 1.14). This is shown by the higher index recorded during the quarter. However, lower export intensities were recorded for China (0.45, 0.39, 0.46) and France (0.82, 0.83 except in March where France recorded 1.18. This can be attributed to the nature of the product mix exported during the quarter.
Import Intensity Index with five Major Trading Partners
During the quarter, the import intensity index of Nigeria with the top importing partners (China, the Netherlands, India and Belgium) were higher in all months. China recorded 1.7, 1.5 and 2.0 in January, February and March. Higher indices were also recorded for the Netherlands (1.0, 4.4 and 1.0), India (3.4, 5.1 and 4.2), Belgium (1.0, 1.3 and 1.4) while the United States registered lower intensities of 0.9 and 0.6 for January and February except in March where it recorded 1.3.
Trade by Mode of Transport
The majority of commodity exported out of Nigeria were transported by water. This was reflected in the value of exports by water in Q1 2021. Water transport accounted for N2,822.5billion or 97.09% of total exports. Air transport contributed N75.9billion or 2.61%, Road transport was valued at N3.7billion or 0.13% while other transport was valued at N5.0 billion or 0.17%.
Similarly, for imports, most goods brought into the country arrived via water transportation means. Water transport accounted for N6,056.6billion or 88.4% of the value of total imports. Other modes of transport were air and road, responsible for goods valued at N765.3billion or 11.17% and N28.8billion or 0.4% respectively.
Trade by Custom Ports and Post
In Q1 2021, the bulk of export transactions was conducted through Apapa port, with goods valued at N2,584.7billion or 88.91% of total exports. This was followed by Port Harcourt (3) which recorded N167.29billion or 5.75% while Muhammed Murtala International recorded N75.4 billion or 2.5%.
In terms of imports, Apapa Port also recorded the highest transactions valued at N2,927.1billion or 42.73% of total imports. This was followed by Tin Can Island N1,229.43billion or 17.95%, Port Harcourt (3) N691.7billion or 10.10%, while Muhammed Murtala Cargo recorded N625.7billion or 9.13% of total imports.
Brand Spur Nigeria reports that the message many of the customers claim to have received is “Welcome to USSD Banking. Please note, an N6.98 network charge will be applied to your account for banking services on this channel.”
Amid Economic Crisis, Nigerian Banks Begin N6.98 USSD Service Charge-Brand Spur Nigeria
Recall the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a unitary statement claiming that the new USSD charges were incorporated in order to foster transparency and is being collected for Mobile Network Operators (MNOs), who is in charge of providing structure for USSD services to operate in association with bank accounts.
The joint statement by CBN and NCC read, “We are pleased to announce that after comprehensive deliberations on the key issues, a resolution framework acceptable to all parties was agreed thus:
“Effective March 16, 2021, USSD services for financial transactions conducted at DMBs (Deposit Money Banks) and all CBN-licensed institutions will be charged at a flat fee of N6.98 per transaction. This replaces the current per session billing structure, ensuring a much cheaper average cost for customers to enhance financial inclusion.
‘’To promote transparency in its administration, the new USSD charges will be collected on behalf of MNOs (Mobile Network Operators) directly from customers’ bank accounts. Banks shall not impose additional charges on customers for use of the USSD channel.”
About Nigerian Banks And USSD Payment Method
The USSD payment option is one that is very important and helpful to persons who are unable to carry out physical banking or internet banking and it is unknown if the CBN in conjunction with the NCC will reconsider the decision.
Please note that Airtime and Data purchases via USSD are exempt from this charge despite the notification that may pop up.
Check Out USSD Code For Different Nigerian Banks
Access Bank USSD Code
The Access bank USSD code allows you to make transactions and enjoy other banking benefits and services right from your phone without internet connection or data and without visiting the bank.
Access bank’s USSD code is *901#.
EcoBank USSD Code
If you are an EcoBank customer, the Ecobank USSD code would always come handy whenever you want to make a transaction from your bank account.
The EcoBank USSD Code is *326#.
Fidelity Bank USSD Code
Once you have a fidelity bank account, this is very simple. Just dial the Fidelity Bank USSD code on your phone which is *770#. Select ‘Banking’ and start banking!
First Bank USSD Code
The First Bank of Nigeria provides USSD Banking Service for its customers which allow customers to make transactions on their phone devices using the USSD code.
The USSD code for First Bank of Nigeria is *894#.
First City Monument Bank (FCMB) USSD Code
Dial the First City Monument Bank USSD code to top up airtime on your mobile device, transfer funds, check account balance etc. The USSD code for First City Monument Bank is *389*214#.
Guaranty Trust Bank (GTB) USSD Code
You can initiate a transfer or some other bank transaction by dialling the GTB USSD shortcode. The USSD shortcode for GTB is *737#.
Heritage Bank USSD Code
Do you have an account with heritage bank and seek a fast means of running transactions with the bank? It would help if you tried using the bank’s USSD shortcode. The USSD code for Heritage Bank is *322*00#.
Jaiz Bank USSD Code
JAIZ Bank may not be popular, especially for people in the southern part of Nigeria, but the bank does have a strong banking system. They are not left out in the use of USSD short codes.
The USSD code for Jaiz Bank is *389*301.
Keystone Bank USSD Code
The USSD banking code is the easiest and fastest means of checking account balance, sending money and airtime from your account to another account or mobile network.
The USSD code for Keystone Bank is *7111#.
Polaris Bank USSD Code
Polaris Bank USSD code is quick and simple to use. Simply dial the Polaris Bank USSD code, *833#, for your banking activities.
Stanbic IBTC Bank USSD Code
The Stanbic IBTC Bank also introduced the USSD code which works with any phone number registered to your bank account (just as it is with other banks).
The USSD code for Stanbic IBTC is *909#.
Sterling Bank USSD Code
The Unstructured Supplementary Service Data, USSD allows Sterling Bank customers to have access to basic financial services by merely dialling the USSD shortcode.
The USSD code for Sterling Bank is *822#.
United Bank for Africa (UBA) USSD Code
The UBA USSD code enables UBA customers to carry out a range of tasks such as to transfer funds, top-up airtime and even to open UBA account.
UBA USSD code is *919#.
Union Bank USSD Code
Here is an easy way to carry out basic banking operations from your union bank account – the use of the Union Bank USSD code.
For a Union Bank customer, you dial the Union Bank USSD code, *826#, to get started.
Zenith Bank was among the first banks in Nigeria to launch the Unstructured Supplementary Service Data (USSD) account control code which customers can use to make some bank transactions with ease.
Following the suspension of Twitter usage in Nigeria by the Buhari-led federal government, Nigerians have diverted to the use of Virtual Private Networks (VPN) services to access their Twitter accounts.
VPN understandably makes one feel invincible, but there are still a few important risks involved that should one keep in mind.
VPNs provide two of the most important services which are encryption and virtual IP addresses.
Encryption locks data in a layer of unbreakable code while virtual IP addresses help one to gain access to virtual, non-local IP addresses.
With VPNs, you can still access the free internet through a tunnel. But can you trust the provider?
Here Are Security Risks Associated With Using Untrusted VPNs
Choosing the wrong VPN – One of the central dangers of using a VPN is choosing the wrong one.
Free services that advertise on browser extension stores and mobile marketplaces are notorious for claiming fast downloads and anonymized activities when in reality they can be more dangerous than not using a VPN at all.
All devices aren’t automatically protected – If you use VPN software to protect your PC or smartphone, that’s the only device that gets protected.
In order to keep data safe, you must install an app on every device that connects to the internet (or else use a VPN router).
Viruses and malware are still a threat – Most VPNs do not protect your computer from viruses or malware.
You’ll still need to be mindful of downloading suspicious files, especially through torrent and P2P networks.
Speed issues – VPN will often slow your connection speed by 10-25% depending on the service, all thanks to encryption overhead.
This can be frustrating if you frequently stream HD movies or do a lot of online gaming.
Fake VPN scams – In an ironic twist, many online hackers rely on scamming those who are working the hardest to avoid scams.
This means that consumers should be wary of free anti-virus installers, fake ‘alert’ pop-ups, and, yes, VPN software.
In the worst case, however, they also sell or supply data to government authorities. Even if the provider promises not to sell the data, it is already a risk that the data is stored at all.
Not a day goes by without a new data leak being reported, whether due to poor security or criminal hacker attacks.
Users Data Privacy – If a VPN service doesn’t charge its customers, the company has to bring in revenue from somewhere else. All your data make a detour via the VPN provider. But do you really know the company and what it’s about? Essentially, you will have to trust your provider to maintain data privacy.
The most common source is selling user information the VPN promised to protect. If you aren’t paying for the service, you’re not the customer, you’re the product. This holds true for nearly every free VPN service.
Lastly, you need to trust the VPN provider itself to look after your data. You also need to be certain that the app you are using is a genuine VPN, and not itself a scam.
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