Berger Paints Appoints Ogechi Iheanacho As Director; Engr. Patrick Buruche Retires

Esan Bolaji
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Berger Paints Appoints Ogechi Iheanacho As Director; Engr. Patrick Buruche Retires

Berger Paints Nigeria Plc has announced to its stakeholders and by extension, the public, that Engineer Patrick Buruche, a Non-Executive Director on the Board of Berger Paints Nigeria Plc, will be retiring from the Board effective December 31, 2020.

The Board remains appreciative of his contributions to the Company for the entirety of his tenure.

Consequently, the Board has approved the appointment, subject to the ratification of the Annual General Meeting, of Mrs. Ogechi U. Iheanacho as a Non-Executive Director effective January 2, 2021.

Berger Paints Nigeria Plc is a Nigeria-based company, which is engaged in manufacturing and marketing of paints and allied products and holds an investment property.

Its segments include Paints and allied products, which is engaged in manufacturing, distributing and selling of paints and allied products; Contract revenue, which is engaged in the rendering of painting services, and Investment property rental income, which is engaged in investment property rentals.

Mrs. Iheanacho will be bringing to the Board, her financial and corporate governance expertise having served as Financial Dealer, Treasury & Funds Management with Associated Discount House Limited (now Coronation Merchant Bank Ltd) and as Legal Counsel in the Company Secretariat of Fidelity Bank Plc.

She is a Director on the Boards of Harmony Trust & Investment Company Limited and Regal Investments Company Limited. She is also a Trustee of the Living Fountain Orphanage, Lagos.

Mrs. Iheanacho graduated with an LLB degree from the University of Westminster, London, U.K., where she was awarded the Geoffrey Reeday Prize for the best result in Company Law. She also holds a Master’s degree in Commercial & Corporate Law (Merit) from the University of London (University College London).

She is a member of the Nigerian Bar Association, an Associate of the Chartered Governance Institute, UK and a member of World Commerce and Contracting (formerly International Association for Contract and Commercial Management).

Its Decorative product range includes premium, economy and budget grades of Emulsion, Gloss and Textured paints.

Its Decorative brands include Luxol, Super Star and Robbialac. Its Decorative brand products include Luxol Emulsion, Clinstay, Rufhide, Fire Retardant Texcote, Luxol Gloss and Superstar Emulsion.

Its Non- decorative product ranges include General industrial Product, Automotive Vehicle Refinishes, and Marine and Protection. Its products include Cellulose Enamel, Autolux, Thermoplastic Road Marker and Wood Finishes.

NSE ASI Revs by 1.03% as BUA Cement, International Breweries Shares Gain 10% Each

Brand Spur
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NSE ASI Revs by 1.03% as BUA Cement, International Breweries Shares Gain 10% Each

NITTY Fall for most Tenor Buckets amid Renewed Liquidity Ease…

The domestic equities market sustained its bullish trend as the All-Share Index (ASI) revved by 1.03% to close at 39,512.31 points.

Given the rise in the share prices of BUACEMENT, INTBREW and ETERNA by 10% each, coupled with the higher number of gainers (24) as against losers (19), the year-to-date gain of the NSE ASI jumped to 47.20% at the close of the trading session.

Also, the performance was largely positive across sub-sectors, especially at the industrial sub-sector space.

Specifically, the NSE Industrial index rose by 3.74%; followed by the NSE Insurance and the NSE Consumer Goods indices which rose by 2.99% and 0.36% respectively. On the flip side, the NSE Banking and the NSE Oil/Gas indices fell by 0.71% and 0.39% respectively.

Meanwhile, activity in the market was relatively positive given the DANGCEM Shares Buyback Programme (up to 85.2 million units) which is expected to be completed tomorrow.

Hence, the total deals and value of stocks traded increased by 2.86% and 162.57% to 5,183 deals and N11.50 billion respectively; however, the volume of stocks traded fell by 48.39% to 0.37 billion units.

Elsewhere, NIBOR and NITTY fell for the most tenor bucket as liquidity returned to the financial market. In the OTC bonds market, the values of FGN bonds decreased for most maturities tracked; however, the value of FGN Eurobond increased for most maturities tracked.

NSE ASI Revs by 1.03% as Bua Cement, International Breweries Shares Gain 10% Each Brandspurng
Source: NSE, Cowry Research

Local Bourse Sustained Bullish Momentum…Investors Gained N213.37 bn

PFI Capital
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Local Bourse Sustained Bullish Momentum…Investors Gained N213.37 bn
The Nigerian equities market extend positive momentum amid extended bargain hunting on bellwether stocks. Notably, The All Share Index (ASI) advanced by 1.03bps to 39,512.31 with market capitalization also gaining N213.37bn to settle at N20.66tn.

Consequently, the Year to Date (YtD) performance advanced to 47.20%. The sectoral performance was also bullish as 3 out of the 5 sectors under our coverage closed positive.

Industrial and Consumer goods and insurance indices went up by 3.74%, 0.36% and 2.96% following bargain hunting in the shares of BUACMENT (+10.00%), INTBREW(+10.00%) and LINKASSURE(+8.33%).

On the other hand, Banking and oil & gas indices declined by 0.71% and 0.39% as selloffs were witnessed in ACCESS(-2.23%) and OANDO(-3.31%).

Investors’ sentiment measured by market breadth was positive as 24 stocks advanced while 19 stocks declined to indicate a 01.26x market breadth. A 48.39% decrease in volume and 162.57% increase in the value of the transaction was recorded amid a 2.86% increase in the number of trades.

Local Bourse Sustained Bullish Momentum...Investors Gained N213.37 bn Brandspurng

The bond market traded on a quiet note as the yield on short and mid dated instruments advanced. Notably,   Yield on the FGN-MAR-2025  advanced by 0.26%  to close at 5.45% while  Yield on  FGN-JUL-2030 remained stable at 7.19%.

MARKET SNAPSHOT

  • Local Bourse Sustained Bullish Momentum…Investors Gained N213.37bn
  • The bond market traded on a quiet mood
  • U.S. Stocks Rise on Vaccine Optimism
  • Oil Poised further gains on new energy demand outlook
  • Naira maintained stability against the USD at the parallel market

Mondia Brings Ground-Breaking Entertainment Platform Monsooq to Nigeria

Esan Bolaji
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0
Mondia Brings Ground-Breaking Entertainment Platform Monsooq to Nigeria

Monsooq’s unique time-based model allows consumers to buy entertainment time just as they would mobile airtime and use that time to consume any content

December 30, 2020/ – Mondia, a leading mobile technology company specialising in the marketing and distribution of digital content, today announced its second African launch of the ground-breaking time-based entertainment platform Monsooq, in Nigeria. This follows on the heels of the initial launch in South Africa.

Mondia Brings Ground-Breaking Entertainment Platform Monsooq to Nigeria Brandspurng

Monsooq is the first-of-its-kind model which utilises time as the currency. Users pay only for the time they spend consuming content and are not required to take out any contracts or subscriptions.

Entertainment anytime anywhere

Monsooq’s unique time-based model allows consumers to buy entertainment time just as they would mobile airtime and use that time to consume any content they choose, including movies, sports, educational content, books, series, games and music – all on a single, convenient, end-to-end entertainment platform. New users to https://Monsooq.com/ng will receive 60 minutes complimentary access and a 50% discount on content during the launch, after which pricing is NGN20 per hour.

Whether a consumer wishes to play a game for 30 minutes while commuting, or binge a new series for six hours, they are able to load that amount of time to their profile securely using a debit or credit card. And when their time ends, they simply top up with more.

Nigeria houses incredible content

Dr Amadeo Rahmann, Mondia Group CEO, said:

“Africa is the next frontier in regard to digitalisation. Our extensive footprint, increasing customer base and significant experience in the region make Africa a natural choice of focus for us. African markets, especially Nigeria with its large population and growth of digital streaming services, are primed for the democratisation of the content.

Mondia is firmly focused on changing the way people consume entertainment. We have incredible reach and deep understanding of the geographies in which we operate, with over 1.4 billion potential users in these countries.”

Mondia believes that Nigeria is a great local content hub for Africa with its media and entertainment industry, Nollywood, providing world-class content. Nigeria is also currently the second-largest film producer in the world in terms of a number of movies[3]. The local industry employs about one million people and generates over US$7 billion for the economy3, and Mondia is excited to help provide another platform for this content.

The “new normal” brings new opportunities

“COVID-19 has had such a dramatic impact on economies globally, deeply affecting consumers’ disposable income. We believe that the Monsooq model is reflective of the changed financial situation of consumers while bringing much-needed entertainment during these difficult times,” concludes Dr Rahmann.

Mondia sees exceptional potential in the continent. According to research conducted by PwC South Africa in 2019[1], entertainment and media (E&M) spend in Nigeria saw a 25.5% rise in E&M revenue in 2017 to US$3.8bn.

In December 2019 more Africans (526 million) accessed the internet than North Americans[2]. And there is still massive potential for growth: Africa has a total internet penetration level of just under 40%, as compared to penetration in the rest of the world of 63.2%. While streaming services have proliferated across Africa, there is an increasing need to deliver enhanced value, choice, and innovation in terms of pricing and content.

Monsooq also represents a new frontier of content monetisation for entertainment providers, giving them direct access to customers who are not interested in a traditional subscription model.

Content is king

Monsooq features a world-class recommendation engine to ensure consumers find the content they love. Content will be localised and customised, with a mix of local, regional and international content. Mondia aims to build the content economy and bring value across Africa as Monsooq expands.

The platform has partnered with leading regional content providers such as Viva Nation and Wi-flix, as well as well-known international TV channels, sports and games providers, and offers over 20 000 hours of entertainment including, Esport and EPIC ON. In addition, Mondia will also feature their own entertainment services which boast leading games and music titles.

Monsooq launched in South Africa in November, which incorporates a deal with LaLiga as a premium content partner, and now launches in Nigeria, with other markets to follow.

Global Digital Payments Market to Grow by 23.7% in 2020 to $4.9 Trn

Esan Bolaji
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0
Global Digital Payments Market to Grow by 23.7% in 2020 to $4.9 Trn

While it was already underway prior to the Pandemic, the global shift to digital payments has been positively affected by the crisis.

According to the research data analyzed and published by Finnish website Mutual Funds, it is among the fintech verticals reporting the highest growth in 2020. The report reveals that during the first half of the year, digital payments grew by 21% year-over-year ( YoY) in terms of transaction volume.

Global Digital Payments Market to Grow by 23.7% in 2020 to $4.9 Trn Brandspurng4

Other verticals showing remarkable growth included digital custody (36%), digital asset exchange (33%), digital savings (26%) and WealthTech (24%).

According to Statistics, the total transaction value in digital payments is projected to grow at 23.7% in 2020 to reach $ 4.93 trillion. The number of digital payment users is forecast to increase by 10.1% YoY to reach 3.47 billion in 2020.

Digital Payments Total Transaction Value Worldwide in 2020

Global Digital Payments Market to Grow by 23.7% in 2020 to $ 4.9 Trillion Brandspurng
Sources: Statista, World Economic Forum

Total Transaction Volume Growth of Fintech Verticals in H1 2020

Global Digital Payments Market to Grow by 23.7% in 2020 to $ 4.9 Trillion Brandspurng1

In the period between 2020 and 2024, it is set to grow at a 13.4% compound annual growth rate (CAGR) to reach $ 8.17 trillion by 2024.

Digital Commerce is the market’s top segment, estimated to reach a total transaction value of $ 2.93 trillion in 2020. It will mark a growth rate of 4.8% YoY. In the period up to 2024, it is projected to grow at an 8.9% CAGR to reach $ 4.11 trillion. On average, the transaction value per user in digital Commerce is estimated to total $ 843.0 in 2020.

China is expected to take the lead globally in digital payments overall as well as in digital Commerce. In the former, the country is set to generate $ 2.31 trillion in 2020 while in the latter it is projected to rake in $ 1.17 trillion.

Asia’s Digital Payments Market to Reach $ 2.88 Trillion in 2020

For Asia as a whole, Statistics forecasts that digital payments will reach $ 2.88 trillion in 2020. According to McKinsey, Asia has outpaced all regions globally with regard to payments revenue growth over the past few years.

Global Digital Payments Market to Grow by 23.7% in 2020 to $ 4.9 Trillion Brandspurng2

As the top contributor to global payments revenue, it generated close to $ 900 billion in 2019. It was almost half the global total on McKinsey’s Global Payments Map.

Moreover, a report from Data Search Consulting offers higher figures, asserting that the digital payments industry in APAC generated $ 1.9 trillion in revenue in 2019. According to the source, China contributed two-Thirds of this total.

Up until 2017, Europe had been the Epicenter of digital payments globally with North America close behind. Based on data from Capgemini, Asia Pacific had a growth rate of 24.7% in digital payments between 2018 and 2019. In contrast, Europe grew at a 12.2% rate between 2018 and 2019 while North America grew at 5.6%. The global growth rate at the time was 14.1%.

In 2020, the market has experienced significant growth due to the rising number of digitally active consumers and a thriving eCommerce market. Over the three-month period leading up to November 2020, there was an increase of 20% in the number of digital users making contactless payments in Asia.

Based on the aforementioned Data Search Consulting report, the use of digital payments in Asia during COVID season grew by 2.5 times compared to pre-pandemic figures. Moreover, 75% of users in APAC say they plan to continue using digital payments even post-COVID.

APAC Mobile Payments to Grow by 13.9% to $ 277.5 Billion in 2020

Explaining the Sheer dominance of the APAC region, Capgemini points to the dominance of mobile payments in the region.

In China specifically, 70% of consumers make use of mobile wallets on a regular basis according to Finextra. In 2020, it is estimated that 80% of global mobile wallet revenues will come from this country.

South Korea is also a top contender in the race and is Predicted that by 2022, it will have made it to the top three cashless countries globally. Over half of the 1,600 bank branches in the country no longer support cast deposits or withdrawals.

It is estimated that in 2020, mobile payments in APAC will reach $ 277.5 billion. Comparatively, the figure will be $ 229.1 billion in Europe and $ 184.8 billion in North America.

For APAC, that translates to a growth rate of 13.9% YoY, compared to 6.2% for Europe and 3.0% for North America.

Over the coming years, mobile payments are expected to dominate the digital payments Ecosystem. The market is expected to grow at a CAGR of 11% between 2019 and 2023.

Though contactless cards are the popular option in 2020, QR-code payment options and digital wallets are in the pipeline. These are set to bring mobile payments to the fore.

FCMB opens ultra-modern cash center at Ikorodu

Brand Spur
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FCMB opens ultra-modern cash center at Ikorodu

First City Monument Bank (FCMB) has again proved its mettle as a customer-centric financial institution that cares for the comfort of its customers by opening a world-class Cash Centre at Ikorodu, Lagos.

The ultra-modern Cash Centre, located at Oluwarotimi Adeola Street, Ori Okuta Junction, Off Isawo Road, Ajaguro-Owutu, Ikorodu, takes into consideration the convenience of residents and businesses present within Owutu and its environs, including the popular Ikorodu garage, Agric Junction and Haruna areas.

FCMB opens ultra-modern cash center at Ikorodu, Lagos

The development, which is coming two weeks after the Bank opened another Cash Centre at Ipaja, a suburb in Alimosho local government in Lagos, is in line with the commitment of FCMB to bring financial services closer to the populace to deepen financial inclusion, especially in densely populated areas like Ikorodu where a large number of people desire excellent banking services.

The Cash Centre, which commenced operations on December 21, 2020, is powered by solar energy and equipped with latest traditional and digital banking infrastructure that ensures convenient and secured financial transactions for customers in a relaxed and tranquil environment. This is in addition to the team of highly experienced staff deployed to attend to the needs of existing and potential customers of the Bank.

Speaking on the opening of the FCMB Cash Centre at Owutu, Ikorodu, the Managing Director, Mr. Adam Nuru, reaffirmed the commitment of the Bank to grow its network to meet the individual and business aspirations of its ever-increasing customer base across segments.

According to him, 

“this is another turning point in our commitment to ensure that Nigerians enjoy the very best of Banking experience from FCMB. We consider our presence at Owutu, Ikorodu as another great opportunity to further cement our relationship with Lagos and in turn, drive development in this part of the state. Ikorodu is one the fastest growing residential and business hubs in Lagos. As an inclusive lender, we recognise that the only way we can succeed is when we engage and support our customers to succeed.’’

Also commenting, the Divisional Head, Service Management of FCMB, Mr. Oluwakayode Adigun, said, 

“having a second physical outlet in Ikorodu to support our long-existing Branch in the town reinforces our customer-centric approach. We assure that individuals and businesses at Owutu and its environs will enjoy the valued-added offerings which FCMB has been known for since its establishment 37 years ago.

We will also use the opportunity to further optimise our strategic digital transformation drive by deploying channels that would promote rapid growth in the area. We urge existing and potential customers to take advantage of the benefits which the Cash Centre offers by banking with FCMB.”

FCMB, as a foremost financial institution in Nigeria, has continued to wax stronger by re-engineering its processes and leveraging on emerging technologies to offer a seamless customer experience at all channels. This is in line with its values of Execution, Professionalism, Innovation and Customer-focus (EPIC)”.

With its more than 6 million customer base, over 200 branches spread across Nigeria and upward growth in overall performance, the Bank has consistently proved its mettle as a resilient and dominant player in the Nigerian financial services industry.

These strides have earned the Bank several accolades and awards. The Bank recently emerged as the winner of the prestigious award of Best SME Bank in Africa at the Asian Banker Middle East and Africa Regional Awards. In 2019, the lender was conferred with the award of “Most Business-Friendly Bank” at the BusinesDay Banking and Finance Awards.

It equally bagged the award of “Excellence in Customer Experience” at the Finnovex Award held last year. In addition, FCMB was rated as the number one Bank for SMEs in Nigeria, courtesy of the Nigeria Banking Industry Customer Experience Survey report by KPMG.

With a clear understanding of its market and environment, FCMB is well-positioned to continue to create value by delivering exceptional services, while enhancing the growth and achievement of the personal and business aspirations of its customers.

Fitch Affirms FCMB at 'B-'/Stable; off Rating Watch Negative

MTN Nigeria brings the Year to Climax in Celebration of Arts and Culture

Esan Bolaji
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MTN Nigeria brings the Year to Climax in Celebration of Arts and Culture
As part of efforts to make life brighter and promote the arts, MTN Nigeria sponsored Oluronbi, a musical theatre performance by Bolanle Austen-Peters Productions. Oluronbi, an ancient Yoruba folktale, follows the life of Oluronbi, a woman who promised to dedicate her first child as offering to the spirits who cured her barrenness.

The musical featured eight performances in four days at Terra Kulture.

Speaking at the premiere on December 26, 2020, producer of the play, Bolanle Austen-Peters spoke on the future of Bolanle Austen-Peters Productions, “We are going to bring you stories that are authentically Nigerian.”

MTN Nigeria brings the Year to Climax in Celebration of Arts and Culture

She also expressed gratitude to MTN, noting why its contribution was particularly special at a time like this, “I want to thank MTN and all the MTN team. It’s very difficult for anyone to sponsor anything in this season but somehow we all made this work.”

Also speaking, Nonny Ugboma, Executive Secretary MTN Nigeria Foundation said,

 “At MTN, we value arts and culture. This is why we are always willing to support its celebration. We are also keen on ensuring that talented Nigerians have platforms to tell important stories that resonate around who we are.

We are honoured to be part of this beautiful retelling of the story of Oluronbi. We are also glad that we were able to make lives a little brighter by collaborating with Bolanle Austen-Peters Productions. We hope everyone who attended is inspired and lifted by the beauty of what they witnessed.”

The COVID-19 guidelines protocol issued by the Federal and State governments was strictly adhered to. Attendees were required to undergo a temperature test, wear masks and maintain their distance. They were also required to sanitise their hands before they were admitted.

Airtel Nigeria Wins at SERAs, LaPRIGA

Brand Spur
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Airtel Nigeria Wins at SERAs, LaPRIGA

Leading telecommunications services provider, Airtel Nigeria, has been recognized for its efforts in storytelling and PR innovation at the 5th edition of the Lagos Public Relations and Industry Gala (LaPRIGA), a prominent communications industry event at the instance of the Lagos Chapter of the Nigerian Institute of Public Relations.

The Corporate Communications Department of Airtel Nigeria has also been awarded the ‘Best Corporate Communications Team’ in Africa by the prestigious Sustainability, Entrepreneurship and Responsibility Awards (SERAs), a prominent award platform designed to celebrate excellence in the practice of Sustainability and Corporate Social Responsibility (CSR) in Africa.

According to a citation read in honour of Airtel Nigeria at the LaPRIGA event, the telco was bestowed with ‘Best Brand in Storytelling’ and ‘Best Innovation in PR Practice’ awards for scoring high on a wide range of parameters ranging from creativity, storytelling and proactively engaging its various stakeholders.

The Panel of Judges of the SERAs said the Airtel Nigeria Corporate Communications department has consistently and flawlessly designed and implemented programmes to not just uplift the vulnerable, underprivileged and hard-to-reach in the society but has been unwavering in its commitment of championing corporate philanthropy and exemplary CSR practice in Nigeria.

Commenting on the awards, Emeka Oparah, Director: Corporate Communications & CSR, Airtel Nigeria, commended the organizers of LaPRIGA and SERAs for creating platforms to recognize and reward excellence in the practice of Public Relations and CSR/Sustainability in Nigeria.

He expressed appreciation to his team members and to the Managing Director and Chief Executive Officer, Airtel Nigeria, Mr. Segun Ogunsanya, who, according to Oparah, is extremely passionate about CSR and Giving and always goes the extra mile to ensure that the Corporate Communications team gets all the support it requires.

“Airtel Nigeria dedicates the SERAs award to the underprivileged Nigerians who we strive daily to support through our flagship CSR initiative, Airtel Touching Lives. If we haven’t touched your life directly yet, hopefully, we will do so soon.”

Inaugurated four years ago, the LaPRIGA Awards is regarded as the high-profile red bow-tie event which has evolved to become communications industry Oscars aimed at recognizing excellence, celebrating practitioners, corporates, and stakeholders via awards dinner, and to boost professionalism and more investment in the Public Relations practice.

Over 400 leading communications professionals in consultancies, government, corporate and not-for-profit organizations, captains of industry including media personalities, academia and C-Suite executives from across different sectors and industries attended this year’s edition of the event.

In the last 13 years, the SERA awards have attracted over 1242 entries from over 300 organisations. The thorough awards process that ensures physical verification and documentation of projects entered via site photography, videos, and interviews of various stakeholders (the only awards platform of its kind in the world with such depths in its fact-finding process), has visited over 5000 project locations around Africa.

Over the same period, there has been 240 competitive awards winners, 20 honorary award winners, five sustainability champions and 13 overall winners of the most coveted award of The Most Responsible Business in Africa. Within the period under review, the SERAs has had over 25,000 key players, industry and policy leaders and influencers.

Its works over the years has also made the award platform custodians of data around activities of the most active organisations in CSR and sustainability in Africa, be they large, medium or small scale, as well as the not-for-profits.

A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End…

ZedCrest Capital
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0
A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End…

It was a tale of two at the FGN bond space today, as the bond spaced opened the week generally bearish with the market oozing with sellers at the early hours trading session. Still, this bearishness eventually turned at the curve’s tail.

We witnessed the market trades’ chunk at the curve’s belly and a few 2026s-2029s papers. Most of the trades for the mid-dated bond printed at an average of 8.50%, while for the 2026s/2027s at around the mid 6.00% and the 2028s/2029s traded within the range of 7.50%-8.00%.

We also noted some sellers at the early hours for the long-dated bonds, which started off selling around 9.00% levels but dropped by approximately 50bps as demand from opportunistic investors was witnessed on this bond.

Despite all this, the bid/offer spread opened wide and widened further during the day, consequently causing the benchmark yields to expand by an average of 52bps across the sovereign curve compared to Friday’s closing.

We expect the market activities to persist for the week with a bit of profit-taking from local investors who are seeking to close their book positive for year-end.

Treasury Bills

Activities in the T-bills market continued to drag, with few interests seen as offers improved across many papers. The market printed a few trades on the latest OMO issue, the 21-Dec bill, which was initially offered at 2.50% but increased by 40bps by close of business.

These bills saw most of the market Joy as it was offered better than its pairs with other January papers offered around a 1.80% level. All other papers were relatively inactive for most of the trading session, although rates expanded slightly by c.5bps across the OMO/NTB curve.

Market momentum is expected to remain sluggish despite buoyant liquidity availability to support demand for the bills supplied. 

Money Markets

As expected, Interbank rates remained at the sub-one levels with a slight movement upward while we saw lots of banks remain awash with liquidity. Thus, we saw OBB and OVN rates close the day at 0.50% and 0.88%, respectively.

We expect interbank rates to remain at the sub-one percent levels during tomorrow’s session since the market does not envisage any significant outflow to cause otherwise. 

FX Market

The liquidity squeeze persevered in the interbank IEFX market, although we saw more trade volume (c.$90.09M) pass through the market today, with the rate depreciating slightly by 1.50k.

The few trades consummated were mainly client induced, although most banks remained bided between N390 and N395 to the dollar as the Apex bank slowed down in the daily FX sales intervention in that space. Other FX market segments remained unchanged with little or no activity passing through these windows to affect rates significantly. 

Eurobonds

The NIGERIA Sovereign tickers slide slightly as demanded persisted in today’s session. We noted better bids across the sovereign curve, most especially in the mid and long-dated maturities. Consequently, yields expanded by an average of c.3bps across the sovereign yield curve.

Similarly, the NIGERIA Corps tickers traded on a bullish note, except for the ACCESS 2021s and ZENITH 2022s, which expanded by +c.19bps and +c.6bps compared to Fridays’ closing.

United Nigerian Textile Mill’s recent decision to lay off 3,000 workers highlights everything wrong with the Nigerian economy

Ayo Akinfe
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0
United Nigerian Textile Mill’s recent decision to lay off 3,000 workers highlights everything wrong with the Nigerian economy

Last week, the United Nigerian Textile Mill Limited (UNTL) made 3,000 workers redundant in Kaduna. Its excuse was that there was no market for its goods. As the saying goes: “Even in the abundance of water a fool is thirsty.” How can a monopoly textile mill struggle for orders in a market of 200m people abeg?

In 1964, the newly established Hong Kong-based Cha Group partnered with the Northern Nigerian Regional Development Corporation to open the UNTL mill in Kaduna. By 1980, this plant was manufacturing printed cotton textiles across Nigeria and for other West African markets.

Nigerian Textile Industry Resuscitation Bill 2020
www.brandspurng.com

However, it was soon downhill from there. Declining infrastructure, erratic electricity supply, frequent changes in political leadership at the federal level and the smuggling of less-costly imported textiles (often from China) undermined local textile manufacturing. Also, inflationary pressures associated with the national oil industry undermined agricultural production, exacerbating the difficulties of obtaining raw Nigerian cotton.

In 2007, the UNTL mill in Kaduna closed, although it resumed production in December 2010, assisted by the N100bn Cotton, Textile and Garment Development Fund.

Can someone please explain to me why this company does not have a monopoly of the global agbada, head tie, dashiki, etc market?

UNTL should be a vertically integrated conglomerate with a supply chain that extends from owning cotton farms to printing fabrics to sewing finished clothing. Annually, it should easily produce say 20m head ties.

10 Areas in Which I Expect Major Policy Announcements During President Buhari’s Xmas Day Address To Nigerians10 Areas in Which I Expect Major Policy Announcements During President Buhari’s Xmas Day Address To Nigerians

Kaduna is a state where the collapse of the industry has fuelled the growth of Islamic extremism. The state chapter of the Christian Association of Nigeria (Can) has long been complaining about this. What I do not understand is why the Kaduna Can leaders have not mobilised Christian capital to take over plants like UNTL to provide jobs.

At this time of the year, UNTL should be turning away orders because it is too busy. It should be churning out millions of special Father Christmas suits. UNTL should have a global patent to a unique African design of the suit, which should be a worldwide bestseller.

Our problem as a people is we are waiting for the government to sort out minor problems like this when the solution lies with us private citizens. Is the Kaduna State chapter of the Christian Association of Nigeria really trying to tell me that it cannot evangelical clergymen to invest say $5m in UNTL? Even if it just made robes for the clergy alone, it would be a mint, cash cow and licence to print money.

Let me repeat it for the umpteenth time until Nigeria gets to grips with the concept of religious finance, she is going nowhere economically. I simply do not see any other source of local industrial capital.

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