It appears the huge transaction volume done by retail investors were more of sell-offs as depicted by the negative performance of the benchmark index in the month under review.
Also, the decline in transaction volume by the domestic institutional investors and the slower inflows from the foreign portfolio investors contributed to the southward movement of the local bourse index in March.
Given the increased involvement of the domestic players on the Nigerian Exchange Limited, especially the retail investors, the ratio of total domestic transactions to total foreign transactions tilted to 82:18 in the month under review, from 71:29 in February 2021 as total domestic transactions increased by 22.37% while total foreign portfolio transactions contracted by 34.53%.
Specifically, total transactions on the Lagos bourse increased to N228.49 billion in March 2021 (from N215.58 billion printed in February 2020); of which total domestic transactions increased to N187.85 billion (from N153.51 billion).
On the flip side, FPI transactions decreased to N40.64 billion (from N62.07 billion). A breakdown of the FPI transactions in March 2021 showed that foreign portflio inflows contracted by 11.56% to N20.36 billion; also, foreign portfolio outflows fell by 48.07% to N20.28 billion.
Retail investors increased their stake in the equities market, albeit at lower prices (transactions from this group rose to N108.55 billion in the month under review from N53.80 billion in February 2021).
However, domestic institutional transactions dropped year on year by 20.47% to N79.30 billion in March 2021. Amid profit-taking activities, chiefly by the retail investors, as well as the lukewarm approach of the domestic institutional investors, the NSE All-Share Index (ASI) contracted by 1.90% to 42,412.66 index points to close for the month of March 2021.
In another development, the total revenue generated by Federal Government from Value Added Tax (VAT) increased y-o-y by 52.93% (also rose q-o-q by 9.20%) to N496.39 billion in Q1 2021, from N324.58 billion printed in Q1 2020.
The income from the consumption tax placed on the price of value-added products surged amid the Federal Government decision in 2020 to raise the rate to 7.5% from 5.0% – the new rate took effect on February 1, 2020.
According to the data released by the National Bureau of Statistics (NBS), out of the total amount generated, N224.85 billion was from NonImport VAT (Local); N171.66 billion came from non-import VAT (foreign); and the balance of N99.88 billion was from Nigeria Customs Service (NCS) – Import VAT. Income from the three streams rose y-o-y by 30.22%, 116.42% and 37.60% respectively in March 2021.
Sectoral analysis of the VAT income revealed that out of the 28 sectors monitored, income from 19 sectors grew; especially those of Offshore Operations, State Ministries & Parastatals, Transport & Haulage Services, and Chemicals, Paints & Allied Industries which rose by 167.91% (N1.56 billion), 152.79% (N26.96 billion), 94.77% (N14.93 billion) and 72.40% (N0.98 billion) respectively.
In line with our expectations, the local bourse witnessed another marginal decline in March given the shift by investors to the fixed income space amid a rising yield environment which appears not to have reached a resistance level.
Despite the shift to fixed income securities, we still expect more strategic positioning in stocks with high dividend yields. Meanwhile, with the growth in VAT reflecting the positive impact of the partial economic recovery, we note that the option by the FG to implement phase four of the lockdown could limit gains.
Inflation generally refers to a rapid increase in the general price of goods and services in the country over a certain period of time. Inflation in Nigeria has doubled since 2016 reaching 17.33% in 2021.
The current Covid-19 pandemic has contributed immensely to the recent spike, as oil prices plunged thereby leading to reduced profits in export. These reduced exports have been met with increasing imports over the months leading to a kind of inflation known as imported inflation.
Imported inflation is a kind of inflation induced by heavy dependence on imported products. When there are more imports than exports into the country, it simply means that the forex reserve is being depleted more quickly than it is being replenished; leading to a rise in the price of the dollar against the naira. The implication of this is that more Naira needs to be exchanged for the same quantity of products.
Photo by Cleyder Duque from Pexels
Micro, Small, and Medium Enterprises (MSMEs) are at forefront of these kinds of exchanges due to the heavy import duties they pay. Unfortunately, they are also at the receiving end of its negative impact because when prices rise, their expense cost increases thereby eroding profits.
As a result, Nigerian businesses have been left with no option other than to pass down the increases in marginal costs of production to their consumers in form of price hikes on durable and non-durable consumer goods. When prices rise, the purchasing power of naira reduces.
The best way to cut down on this kind of inflation is to reduce excessive consumption of imported goods and look out for locally produced items that can be produced at a less exorbitant cost.
However, MSMEs are also facing a number of problems like financing, technological deficiencies, marketing issues, increasing domestic and global competition… especially financing. In order to overcome these issues and compete with large and global enterprises, MSMEs need to adopt innovative approaches in their operations.
In Nigeria, small businesses are the drivers of economic growth and financial development contributing over 50% of the total GDP. (PwC’s MSME survey 2020) Yet, obtaining business funding is a major problem they face. Access to credit facilities is essential to the growth and development of small and medium enterprises in newly emerging markets and developing countries.
According to the National Bureau of Statistics (NBS), 55% to 68% of MSMEs are either not served or not adequately served by financial institutions. Barely 5% of SMEs have been able to get funding to meet their day-to-day obligations, much less, expansion.
Innovative microfinance banks in Nigeria can help mitigate funding challenges for MSMEs.
One model example is Advans La Fayette Microfinance Bank, a financial partner for businesses, armed with the resources and products to offer affordable business loans of up to 75m Naira for MSMEs who require adequate capital to restructure their business processes and beat the inflationary effect of imports within Nigeria and its neighbouring countries.
The Advans Group is a leading international microfinance group, currently serving clients in 9 countries, and shareholders such as the IFC (World Bank), KfW, Advans SA.
At Advans, efforts are driven towards financial inclusion, ensuring that no matter where you are and what you do, you have access to financial services. Working together with MSMEs to fight the ailing impact of inflation, and providing adequate financing needed to fund their business operations, thereby creating a win-win situation for the suppliers and final consumers.
The U.S. Food and Drug Administration (FDA) today opened a public comment period on Philip Morris International’s (PMI–NYSE: PM) application seeking authorization to market the IQOS3 electrically heated tobacco system as a Modified Risk Tobacco Product (MRTP).
PMI’s application requests the same reduced exposure modification orders granted on July 7, 2020, for the IQOS 2.4 system—the first, and only, electronic nicotine product to be granted marketing orders through the FDA’s MRTP process. To authorize MRTP consumer communications, the FDA’s Center for Tobacco Products is required by law to conclude that a product is appropriate to promote the public health.
The IQOS 3 device contains a number of technological advancements, compared to the IQOS 2.4 device, including longer battery life and quicker recharge between uses. It was authorized for sale in the U.S. via the FDA’s pre-market review process on December 7, 2020, having met the standard that permitting its sale is appropriate to protect public health.
Commenting on the FDA’s action Jacek Olczak, PMI’s Chief Executive Officer, said:
“PMI is fully committed to a smoke-free future, one where we completely replace cigarettes with scientifically substantiated smoke-free alternatives that are a better choice for adults who would otherwise continue smoking. Our commitment to a science-based future is unmatched, having invested more than $8 billion since 2008 on smoke-free products.
This application underscores PMI’s on-going commitment to make new innovations available to American adult smokers through the FDA process; the confidence we have in our science; and our belief that public scrutiny and open engagement with governments is vital to achieving a smoke-free future.”
Brand Africa is to unveil the 2021 Brand Africa 100: Africa’s Best Brands rankings – the Top 100 brands in Africa, in a series of multi-country blended live and virtual events starting in Uganda at 08h45 and closing with a live event in Ivory Coast at 18h00 on Africa Day, 25 May 2021.
As we build back our economies, new opportunities are emerging. Against the backdrop of the AfCFTA which embodies greater intra-africa trade, self-sufficiency and a commitment to build back better, how will African brands and businesses react and reposition themselves post the pandemic? Which brands have retained, improved or lost their status among African consumers? Which brands are recognized for having been helpful during the Covid-19 pandemic?
Programme
The multi-country blended launch programme, hosted by Brand Africa founder and Chairman, Thebe Ikalafeng on 25 May 2021 will start in Uganda in a virtual announcement of the global, East Africa, and Uganda results at 08h45.
These announcements will be followed by consecutive events in Lesotho at 09h45 SAST, Botswana at 11h30 SAST, Namibia at 13h15 SAST, Nigeria at 14h00 WAT and close with a live launch in Abidjan, Ivory Coast at 18h00 GMT.
All announcements will feature panel discussions and/or keynote addresses with local and pan-African thought leaders and brand builders and profiles of leading brands.
Brand Africa 100: Africa’s Best Brands
Established in 2011, the Brand Africa 100: Africa’s Best Brands rankings are the most authoritative survey and analysis on brands and underlying businesses in Africa, based on a study by Geopoll across over 25 countries spanning all the five economic regions. Collectively they account for over 75% of the population and over 75% of the GDP of Africa.
An analysis of the data by Kantar and Brand Leadership over the past 10 years, has established that on average, only 20% of the brands admired by Africans are made in Africa. What will it be in 2021?
Participants
Leading global and African audience of thought leaders, media, and decision-makers focused on building, investing in, and/or influencing businesses and brands in Africa.
Over the years, Brand Africa 100: Africa’s Best Brands has been hosted by the Johannesburg Stock Exchange, Kenya Stock Exchanges, and Nigeria Stock Exchanges and featured these exchanges’ and other leading African businesses’ CEOs, Chief Marketing Officers, Media, Entrepreneurs, Thought Leaders such global economist Dr. Dambisa Moyo, nation branding pioneer and best-selling author of Brand America, Simon Anholt and best-selling of Africa Rising, Professor Vijay Mahajan.
The results will once again be published as the cover feature of African Business which will be on sale globally at our beginning of June 2021.
The Brand Africa 100: Africa’s Best Brands events are organized by IC Events, Brand Leadership, and Africa practice, and supported by Africa Media Agency and BCW in communication and the Africa Brand Leadership Academy.
On the eve of the International Day of Families, we are shining a light on the lack of responsive, family-oriented policies that prevent women from entering the workforce and thriving in their careers.
The case of a volleyball player fired over her pregnancy in early 2021 sparked outrage in the world of Italian sport and beyond. After announcing that she was pregnant, her volleyball club not only rescinded her contract but also took her to court, claiming an apparent breach of contract.
The facts ironically revealed on International Women’s Day, shone a spotlight on the persistence of a practice unfortunately still quite common and the need to continue fighting for gender equality. Discrimination and unlawful termination of pregnant workers remain pervasive practices around the world, as reported in China, Greece, the United Kingdom and the United States, among others.
Fortunately, according to Women, Business and the Law, these are among the 152 countries where mothers have legal recourse against these unlawful practices, as all their legal systems explicitly prohibit the dismissal of pregnant workers as established by international legal good practice.
Yet in 20% of economies worldwide, women have no legal remedies in such cases and can be fired just for being pregnant.
According to the latest Women, Business and the Law 2021 report, 38 of 190 economies do not prohibit the dismissal of pregnant workers in their laws. Lack of protections like this makes it even harder for women to escape poverty and find stability, especially in light of the hurdles brought on by the COVID-19 pandemic, as stated by the World Bank Group Chief Economist Carmen Reinhart.
The data show that all economies in only two regions provide protection from termination on grounds related to pregnancy – OECD high-income and Europe and Central Asia. However, there is still a lot of work to be done in economies where job-related protections for pregnant workers are still lacking.
Specifically, in 50% of economies in the Middle East and North Africa and in South Asia, 44% of economies in East Asia and the Pacific, 21% in Sub-Saharan Africa, and 9% of economies in Latin America and the Caribbean.
Source: Women, Business and the Law
For many working women, while pregnancy may present physical, psychological, or medical challenges, it can also lead to work-related concerns and consequences, such as discrimination. Pregnant workers often face multiple types of discriminatory treatment and behaviour, such as denial of promotions, redundancy, and pay and job assignment decrease, among others.
Such practices not only can have an impact on women’s career prospects but also on the health of the mother and the baby. This situation was clearly exacerbated during the COVID-19 pandemic, where job loss, health-related concerns, and disrupted healthcare services made pregnant workers more vulnerable than ever.
Research shows that most women are dismissed during the early stages of pregnancy, even before taking maternity leave, which reinforces the need for protection throughout its entire duration. Protections during pregnancy not only grant economic stability to women and their families when they need it the most, but also allow pregnant workers to contribute to the economy. It is further is associated with a positive business impact and sustained productivity in SMEs.
Further, where explicit legal prohibitions against the dismissal of pregnant women are not in place, such as Singapore and Malaysia, job applicants reported pregnancy as one of the leading causes of discrimination in employment and courts failed to deem companies liable for pregnancy discrimination practices.
While legal prohibitions alone may not eliminate discrimination, in one-fifth of economies in the world, they could provide a steppingstone to a fairer and safer working environment for women. Reforms ensuring equality are important more than ever, especially after the pandemic’s devastating effect on working women. Together with legal enforcement and increased awareness around these unfair practices, changes in the law can greatly contribute to making gender equality a reality all over the world.
Despite COVID-19, remittance flows remained resilient in 2020, registering a smaller decline than previously projected. Officially recorded remittance flows to low- and middle-income countries reached $540 billion in 2020, just 1.6 percent below the 2019 total of $548 billion, according to the latest Migration and Development Brief.
The decline in recorded remittance flows in 2020 was smaller than the one during the 2009 global financial crisis (4.8 percent). It was also far lower than the fall in foreign direct investment (FDI) flows to low- and middle-income countries, which, excluding flows to China, fell by over 30 percent in 2020.
As a result, remittance flows to low- and middle-income countries surpassed the sum of FDI ($259 billion) and overseas development assistance ($179 billion) in 2020.
The main drivers for the steady flow included fiscal stimulus that resulted in better-than-expected economic conditions in host countries, a shift in flows from cash to digital and from informal to formal channels, and cyclical movements in oil prices and currency exchange rates.
The true size of remittances, which includes formal and informal flows, is believed to be larger than officially reported data, though the extent of the impact of COVID-19 on informal flows is unclear.
“As COVID-19 still devastates families around the world, remittances continue to provide a critical lifeline for the poor and vulnerable,” said Michal Rutkowski, Global Director of the Social Protection and Jobs Global Practice at the World Bank. “Supportive policy responses, together with national social protection systems, should continue to be inclusive of all communities, including migrants.”
Remittance inflows rose in Latin America and the Caribbean (6.5 percent), South Asia (5.2 percent) and the Middle East and North Africa (2.3 percent). However, remittance flows fell for East Asia and the Pacific (7.9 percent), for Europe and Central Asia (9.7 percent), and for Sub-Saharan Africa (12.5 percent).
The decline in flows to Sub-Saharan Africa was almost entirely due to a 28 percent decline in remittance flows to Nigeria. Excluding flows to Nigeria, remittances to Sub-Saharan Africa increased by 2.3 percent, demonstrating resilience.
The relatively strong performance of remittance flows during the COVID-19 crisis has also highlighted the importance of timely availability of data. Given its growing significance as a source of external financing for low- and middle-income countries, there is a need for better collection of data on remittances, in terms of frequency, timely reporting, and granularity by corridor and channel.
“The resilience of remittance flows is remarkable. Remittances are helping to meet families’ increased need for livelihood support,” said Dilip Ratha, lead author of the report on migration and remittances and head of KNOMAD.
“They can no longer be treated as small change. The World Bank has been monitoring migration and remittance flows for nearly two decades, and we are working with governments and partners to produce timely data and make remittance flows even more productive.”
The World Bank is assisting member states in monitoring the flow of remittances through various channels, the costs and convenience of sending money, and regulations to protect financial integrity that affects remittance flows. It is working with the G20 countries and the global community to reduce remittance costs and improve financial inclusion for the poor.
With global growth expected to rebound further in 2021 and 2022, remittance flows to low- and middle-
income countries are expected to increase by 2.6 percent to $553 billion in 2021 and by 2.2 percent to $565 billion in 2022. Even as many high-income nations have made significant progress in vaccinating their populations, infections are still high in several large developing economies and the outlook for remittances remains uncertain.
The global average cost of sending $200 remained high at 6.5 percent in the fourth quarter of 2020, more than double the Sustainable Development Goal target of 3 percent. Average remittance costs were the lowest in South Asia (4.9 percent), while Sub-Saharan Africa continued to have the highest average cost (8.2 percent). Supporting the remittance infrastructure and keeping remittances flowing includes efforts to lower fees.
Regional Remittance Trends
Formal remittance flows to the East Asia and Pacific region fell by an estimated 7.9 percent in 2020 to around $136 billion due to the adverse impact of COVID-19.
Positive growth in remittances from the United States and Asia helped to mostly offset declines from the Middle East and Europe, which fell by 10.6 percent and 10.8 percent respectively in 2020.
The top recipients in terms of the share of remittances in GDP in 2020 include many smaller economies such as Tonga (38 percent), Samoa (19 percent), and Marshall Islands (13 percent). For 2021, a modest growth of about 2.1 percent is expected due to anticipated recovery in major host economies such as Saudi Arabia, the United States and the United Arab Emirates.
Remittance costs: According to the World Bank Remittances Prices Worldwide, the average cost of sending $200 to the region fell slightly to 6.9 percent in the fourth quarter of 2020. The lowest-cost corridors in the region averaged 3 percent for transfers primarily to the Philippines, while the highest-cost corridors, excluding South Africa to China, which is an outlier, averaged 13 percent.
Remittances to Europe and Central Asia fell by about 9.7 percent to $56 billion in 2020 as the global pandemic and weak oil prices had a significant impact on migrant workers across the region.
The economic crisis of 2020 was not unprecedented compared to the past crises of 2009 and 2015, which saw remittances to the region fall by 11 and 15 percent, respectively. Nearly all the countries in the region experienced declines in remittances in 2020. The depreciation of the Russian ruble significantly lowered the US dollar value of remittance flows to the region.
For 2021, remittance flows are estimated to fall further by 3.2 percent as the region’s economies are expected to recover from the crisis slowly.
Remittance costs: The average cost of sending $200 to the region fell modestly to 6.4 percent in the fourth quarter of 2020. Russia remained the lowest-cost sender of remittances globally, with the cost of remitting from the country falling from 2.1 percent to 1 percent.
Within the region, the differences in costs across corridors are substantial: the highest costs for sending remittances were from Turkey to Bulgaria, while the lowest costs for sending remittances were from Russia to Georgia.
Remittances flows to Latin America and the Caribbean grew an estimated 6.5 percent to $103 billion in 2020. While COVID-19 caused a sudden decrease in the volume of remittances in the second quarter of 2020, remittances rebounded during the third and fourth quarters.
The improvement in the employment situation in the United States, although not yet to pre-pandemic levels, supported the increase in remittance flows to countries such as Mexico, Guatemala, Dominican Republic, Colombia, El Salvador, Honduras and Jamaica, for whom the bulk of remittances originate from migrants working in the United States.
On the other hand, the weaker economic situation in Spain negatively affected remittance flows to Bolivia (-16 percent), Paraguay (-12.4 percent) and Peru (-11.7 percent) in 2020. In 2021, remittance flows to the region are expected to grow by 4.9 percent.
Remittance costs: The cost of remittance transfers to the region was 5.6 percent in the fourth quarter of 2020. In many smaller remittance corridors, however, costs continue to be exorbitant. For example, the cost of sending money to Cuba exceeds 9 percent. Sending money from Japan to Brazil is also expensive (11.5 percent).
Remittance flows to the Middle East and North Africa region rose by 2.3 percent to about $56 billion in 2020. The growth is largely credited to strong remittance flows to Egypt and Morocco. Flows to Egypt increased 11 percent to a record high of nearly $30 billion in 2020, while flows to Morocco rose 6.5 percent. Also registering an increase was Tunisia (2.5 percent).
In contrast, other economies in the region experienced losses in 2020, with Djibouti, Lebanon, Iraq, and Jordan posting double-digit declines. In 2021, remittances to the region is likely to grow 2.6 percent due to moderate growth in the euro area and weak outflows from the Gulf Cooperation Council (GCC) countries.
Remittance costs: The cost of sending $200 to the region fell slightly in the fourth quarter of 2020 to 6.6 percent. Costs vary greatly across corridors: the cost of sending money from high-income countries of the Organisation for Economic Co-operation and Development to Lebanon remained very high, mostly in the double digits. On the other hand, sending money from GCC countries to Egypt and Jordan costs around 3 percent in some corridors.
Inward remittance flows to South Asia rose by about 5.2 percent in 2020 to $147 billion, driven by surge in flows to Bangladesh and Pakistan. In India, the region’s largest recipient country by far, remittances fell by just 0.2 percent in 2020, with much of the decline due to a 17 percent drop in remittances from the United Arab Emirates, which offset resilient flows from the United States and other host countries.
In Pakistan, remittances rose by about 17 percent, with the biggest growth coming from Saudi Arabia followed by the European Union countries and the United Arab Emirates. In Bangladesh, remittances also showed a brisk uptick in 2020 (18.4 percent), and Sri Lanka witnessed remittance growth of 5.8 percent.
In contrast, remittances to Nepal fell by about 2 percent, reflecting a 17 percent decline in the first quarter of 2020. For 2021, it is projected that remittances to the region will slow slightly to 3.5 percent due to a moderation of growth in high-income economies and a further expected drop in migration to the GCC countries.
Remittance costs:The average cost of sending $200 to the region stood at 4.9 percent in the fourth quarter of 2020, the lowest among all the regions. Some of the lowest-cost corridors, originating in the GCC countries and Singapore, had costs below the SDG target of 3 percent owing to high volumes, competitive markets, and deployment of technology. But costs are well over 10 percent in the highest-cost corridors.
Remittances to Sub-Saharan Africa declined by an estimated 12.5 percent in 2020 to $42 billion. The decline was almost entirely due to a 27.7 percent decline in remittance flows to Nigeria, which alone accounted for over 40 percent of remittance flows to the region. Excluding Nigeria, remittance flows to Sub-Saharan African increased by 2.3 percent.
Remittance growth was reported in Zambia (37 percent), Mozambique (16 percent), Kenya (9 percent) and Ghana (5 percent). In 2021, remittance flows to the region are projected to rise by 2.6 percent, supported by improving prospects for growth in high-income countries.
Data on remittance flows to Sub-Saharan Africa are sparse and of uneven quality, with some countries still using the outdated Fourth IMF Balance of Payments Manual rather than the Sixth, while several other countries do not report data at all.
High-frequency phone surveys in some countries reported decreases in remittances for a large percentage of households even while recorded remittances reported by official sources report increases inflows. The shift from informal to formal channels due to the closure of borders explains in part the increase in the volume of remittances recorded by central banks.
Remittance costs: Sub-Saharan Africa remains the most expensive region to send money to, where sending $200 costs an average of 8.2 percent in the fourth quarter of 2020. Within the region, which experiences high intra-regional migration, it is expensive to send money from South Africa to Botswana (19.6 percent), Zimbabwe (14 percent to), and to Malawi (16 percent).
Detailed analysis of global and regional trends are available in the Migration and Development Brief 34 at www.knomad.org and http://blogs.worldbank.org/peoplemove/.
World Bank Group Response to COVID-19 (coronavirus)
The World Bank, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries respond to the health, social and economic impacts of COVID-19.
This includes $12 billion to help low- and middle-income countries purchase and distribute COVID-19 vaccines, tests, and treatments, and strengthen vaccination systems.
The financing builds on the broader World Bank Group COVID-19 response, which is helping more than 100 countries strengthen health systems, support the poorest households, and create supportive conditions to maintain livelihoods and jobs for those hit hardest.
Lagos, Nigeria 9th May 2021: The Stellar Initiative (TSI), a non-governmental organization with a core focus on alleviating poverty and educating children across Africa, has announced its plan to educate one million pupils on drug abuse and give 5 million stationaries to students in disadvantaged communities across Benin, Kano, Oyo, Enugu, Kogi, and other states, through its Book tour and movie show project.
Launched on the 5th of April, the TSI Book tour and movie show project was born out of the desire to not only see more underserved children in school but to ensure students are equipped with moral and mental prowess to excel through school and upon graduation.
With this project, students will be thoroughly educated on drug abuse, bullying, self-esteem, leveraging a blockbuster movie; Nimbe – a film that addresses issues associated with drug abuse. Students will also be provided with stationaries to ensure they stay in school.
Speaking about the initiative, Lead Volunteer and Founder of The Stellar Initiative, Precious Eniayekan, expressed her zeal about how the TSI book tour and movie show project will positively impact pupils of low communities across Nigeria.
“Studies according to UNICEF have shown that one in every five of the world’s out-of-school children is in Nigeria; this to us means that there’s a need for a major and urgent intervention in the Nigerian educational sector.
Every Nigerian child deserves the right to quality education irrespective of their financial capacities or geographical locations and this is why we do what we do. We are elated to extend our reach to other regions of the country and are extremely thankful to all our donors and volunteers who have made this possible” she said.
Further commenting, she expressed concerns on the need to increase intentionality on how children are raised especially within disadvantaged communities.
“Sadly, several communities continue to degrade due to several blue factors ranging from an economic downturn to financial instability, to lack of security and lots more. Raising children in communities like this without proper care, will not only hurt the child but ultimately deprive Nigeria, our dear country, of building a sustainable nation.
It is therefore important to pay closer attention to how children are raised in disadvantaged communities. Having launched this project at Ijero Baptist Primary School, Ebutte Meta, and received positive feedback, we believe that expanding our reach to other regions is a step in the right direction towards instilling the kinds of character, beliefs, and support every child should have” she added.
Since its inception, The Stellar Initiative has continued to aggressively contribute its quota towards developing rural communities and the educational sector in Nigeria. They recently awarded a full academic scholarship to 20 pupils and provided micro-grants to women in rural communities to start businesses.
The external debt of state governments is contracted on non-market terms with official creditors. It has to be approved in advance by federal agencies such as the DMO and is heavily skewed towards those states favoured for their policy, governance and operational management by the donor community.
Lagos State naturally tops the list due to its capacity to generate revenue, and its efforts to provide transport and other services to its population. Kaduna and the other states featuring in our chart can be associated with current and/or previous governors with developmental agendas.
The remaining 31 states plus the federal capital territory were externally indebted at the end-2020 to the tune of USD2.14bn, implying an average of less than USD70m per state. The total debt of the subnational rose by 4.6% y/y from USD4.56bn at end-2019.
Sources: Debt Management Office (DMO); FBNQuest Capital Research
Their total external indebtedness of USD4.77bn was 93% due to multilateral creditors (principally the World Bank and African Development Bank groups). The Agence Francaise de developpement, the French state development bank, accounts for most of the bilateral lending of USD310m, disbursing to eleven different states.
The domestic debt of the states is larger, amounting to the equivalent of USD10.20bn at the end-2020 and more widely distributed. Lagos again tops the table but with a far smaller share of 12.2% of the total. The other states heading the league tend to be oil producers such as Delta and Rivers.
The domestic debt stock was growing rapidly until the first Buhari administration, which introduced controls on new commitments and arranged a swap of states’ bank borrowings for FGN long bonds. The growth slowed to 1.9% y/y in 2020.
Taking the external and domestic debt together, Lagos was the most indebted at end-2020 (USD2.65bn), followed by three in the USD650m-USD750m range (Delta, Kaduna and Rivers).
Federal agencies are containing the growth of subnational debt for reasons of best practice. They know that the repayment capacity of most states has shrunk in the past decade and that the monthly payout by the Federation Account Allocation Committee falls well short of states’ spending in aggregate (Good Morning Nigeria, 30 April 2021).
As professionals in the Nigerian built environment converged in Lagos to mark the 2021 ‘World Facility Management Day’, facility managers and other stakeholders have called for synergy among players in the sector towards achieving an excellent built environment.
As professionals in the built environment continue to change the narratives towards sustainable progress in strategic collaboration with public institutions for a better operating environment for facility management (FM) in Nigeria; stakeholders are of the view that better synergy among players in the sector will deepen FM.
The event which took place at the University of Lagos had the theme- “Celebrating FM: Standing tall beyond the Pandemic” drew participants from academic, political and social Nigeria.
Addressing stakeholders nationwide, at the celebration, the President of the International Facility Management Association, Nigerian Chapter, Mr. Segun Adebayo said the event in line with the global practice seeks to recognize and celebrate the vital work that facility managers across the world have contributed to different industries during the pandemic and even now that we are gradually winning the war against COVID-19.
He states further that IFMA will continue to map out critical paths towards a better operating environment, as members are determined to achieve a sustainable and forward-thinking industry through capacity building, knowledge development and research.
According to him “For us in IFMA, Nigeria Chapter, we are celebrating the day with a strong sense of commitment towards improved health and safety in the built environment, effective activation of business continuity and emergency preparedness.
While we will continue to map out our critical path towards a better operating environment, we are also determined to achieve a sustainable and forward-thinking industry through capacity building, knowledge development, research, and development.”
The President noted that between the last celebration and now, the body has been able to deepen its advocacy commitment through its knowledge-sharing session series.
“In line with our renewed purpose as a pioneer and foremost professional Association in Facility Management with global affiliation and in commemoration of 2021 World FM day, we shall be formally commencing our Mentorship Development Initiative (MDI) with twenty-four mentees from different background today.”
“In line with IFMA renewed purpose as a pioneer and foremost professional association in Facility Management with global affiliation, Adebayo posits that, “We will also be collaborating with one of the Lagos State Public Institution on a program tagged “A Day with Artisans ‘scheduled to hold by the early part of 3rd quarter. This and many more we shall explore for a better-built environment,” he stated.
Shina Atilola, the head of retail and consumer banking at Sterling Bank and Keynote Speaker, said digitization and COVID-19 fast-tracked the need for players in the built environment to capitalize on the emerging environment.
According to him, the pandemic provided an opportunity to change the narrative, hence FM professionals must be proactive. In order words, he states that FM professionals must leverage robotics and artificial intelligence (AI) for better outcomes.
In his speech, the special guest of honour, Architect David Lola Majekodunmi, Chairman, Nigerian Institute of Architects (NIA), Lagos chapter, advised Facility Management practitioners to create a trust fund and invest more in research towards encouraging young Nigerians to be a part of Facility Management.
He also urged all professionals within the built environment to collaborate effectively with facility managers and get them involved from the predesign stage of Construction.
Arch. Majekodunmi said local content should be embraced by players in Facility Management and the built environment in Nigeria. He equally called for collaboration with other professional associations in the built environment.
In his words, “we are trying to make good rules for Lagos State, in terms of physical planning and urban development, we succeeded in changing or reviewing the law, in 2010. However, there was a new physical planning law, but as I stand here today I can say there are over 5000 laws in Lagos State and Zero enforcement.
The Chairman also expressed disappointment about the National Building code which has been drafted thirty-six years ago but has not been approved to date.
During the panel session, Nike Adekanbi, the General Manager, Lagos State Infrastructural Asset Management Agency (LASIAMA), noted that FM professionals and others were frontline workers during the pandemic. According to her, proper maintenance sustains the life span of facilities.
As said by Professor Modupe Omirin, Head of Department, Estate Management, University of Lagos, there is every need for facility managers to be seriously proactive to ensure facilities are properly adaptable.
Engineer Felix Elerunndu, the chief engineer of Park Inn by Radisson while sharing his experience from the hospitality perspective of the impact of COVID-19 on the economy of facility management, said players in the sector had to look inward to stay afloat during the pandemic.
The event was rounded off with the selection of Mentees from Lagos State Technical Schools, 500 level Estate Management students and Masters in Facility Management students from University of Lagos, and artisans. It is expected that these mentees will be trained and have a first-hand understanding of facility management from their mentors who have excelled professionally.
Nigerian Breweries Plc (NBPLC) hereby informs the Nigerian Exchange Limited and the investing public of the following changes in the Board of Directors.
Mr. Jordi Borrut Bel, the brewer’s current Managing Director/CEO, will be completing his assignment in the Company on the 30th of July, 2021 to enable him to take up another assignment within the Heineken group.
In that regard, the Board has accepted his letter of resignation from the Board and the Company effective the close of business on the 30th of July 2021.
Mr. Borrut Bel joined the Company and the Board as the Managing Director/CEO on the 22nd of January, 2018 and has been able to successfully lead the Company through a turbulent period and a challenging operating environment.
With a keen focus on people development, product innovation, expansion of the Route-to-Market, cost leadership, customer and consumer focus, stakeholder engagement and ensuring return on investment for investors, Mr Borrut Bel has firmly repositioned the Company on the recovery path for sustainable growth.
APPOINTMENT: MR. HANS ESSAADI
The Board has appointed Mr. Hans Essaadi as a Director in the capacity of Managing Director/CEO effective the 31st of July, 2021.
Mr. Essaadi, who is currently the Managing Director of Al-Haram Beverages, the HEINEKEN Operating Company (“OpCo”) in Egypt, joined the HEINEKEN Group as a Sales Representative in 1991. He subsequently took up increasingly senior roles within the Group in Sales, Export and Marketing.
He commenced his international career with HEINEKEN Puerto Rico as the Country Manager, and thereafter became the General Manager, Brau Union International, the HEINEKEN OpCo in Austria.
Before his current role in Egypt, he was General Manager, Siroco (the HEINEKEN Joint Venture with the Emirates in Dubai) and Managing Director, HEINEKEN Malaysia Berhad, a listed company in Malaysia.
The Board is pleased to have a person of Mr. Essaadi’s experience and knowledge to take up the position of Managing Director/CEO of the Company and to continue the turnaround work started by Mr. Borrut Bel.
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