The Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) showed that annual inflation rate maintained its upward trend as it rose further to 12.82% in the month of July (higher than 12.56% in June) in line with our expectations.
The higher inflation rate was chiefly due to a spike in the food prices given the ongoing planting season and insecurity challenges in some part of the country. Specifically, annual food inflation rose to 15.48% in July from 15.18% printed in June.
Also, monthly food inflation jumped to 1.52% in July (from 1.48% in June) as prices of bread, cereals, potatoes, yam and meats, amongst others, increased. Similarly, we saw the imported food index expand to 16.35% (higher than 16.31% in June) – as Naira further depreciated against the USD at the Interbank, Bureau de Change and the parallel markets.
Specifically, two months moving average foreign exchange rates rose y-o-y by 3.47%, 15.74% and 28.40% to N381/USD, N414.81/USD and N463.50/USD at the respective market segments in July 2020.
However, Core inflation rate moderated to 10.10% (from 10.13% in June) despite the increases recorded in clothing and footwear (+0.90%), transportation costs (+0.37%) and housing and energy (+0.11%). Also, on a monthly basis, core inflation slowed to 0.75% (from 0.86% in June). Meanwhile, urban and rural inflation rates rose to 13.40% and 12.28% (higher than 13.18% and 11.99%) respectively.
Outlook:
“We expect sustained upward pressure on the inflation rate in August as the ongoing planting season would have a northward effect on food prices going forward.
In our 2020 Outlook report titled ‘’A different playing field,’’ we expected the cement industry to be on the path of growth, this growth was to be fueled by a huge deficit in the infrastructure space across the continent, the renewed commitment of the Federal Government of Nigeria (FGN) to invest heavily in transport (including road, rail, and ports) and housing infrastructure, and coupled with low cement consumption per capita in Nigeria which stands at 150kg compared to the global average of 561kg.
Interestingly, despite the disruption in the supply chain caused by COVID-19, the players in the cement space show resilience, reporting better than expected performance for the period.
Sources: Bloomberg, United Capital Research
Looking ahead, we are optimistic about Nigeria’s cement industry in H2-2020E as we believe that the Economic Sustainability Plan (ESP) if implemented within the time frame stipulated, could raise some hope for the cement industry.
This is as the FG have committed to renewing commitment towards the construction and maintenance of federal highways, roads, bridges, and road interventions within federal
tertiary institutions across the country.
Speaking briefly about the key players, we expect revenue growth to be sustained across the board with DANGCEM and WAPCO estimated to grow revenue by 2.4% and 3.3% to N912.8bn and N252 in FY-2020E buoyed by better average prices and volume increase while we expect 12.7% rise in BUACEMNET topline to M197.9bn.
Partnering with Truera to tackle unjust bias in AI-assisted decision making
18 August 2020, Lagos – Standard Chartered has partnered with Truera, a US-based startup, to use their model intelligence platform to improve model quality and increase trust by analysing models and helping to identify and eliminate unjust biases in the decision-making process.
The Bank is an active proponent of the use of artificial intelligence and data analytics to better support clients and stakeholders and doing so in a responsible and trustworthy way that adheres to the pillars of fairness, ethics, transparency and self-accountability.
Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.
Standard Chartered Partnering with Truera to tackle unjust bias in AI-assisted decision making | www.brandspurng.com
Sam Kumar, Global Head, Analytics and Data Management, Standard Chartered, said: “New developments in analytical technology and expanding usage of data require us to fundamentally rethink how we demonstrate ongoing adherence to our pillars and tackle the issue of unjust bias.”
Machine learning, which makes it quicker and easier to analyse large amounts of data and identify patterns and trends, leads to better performance and risk management when used correctly. However, because machine learning models are built using complex automated algorithms, they can act like a black box where it is often challenging for data scientists to explain in detail how decisions are made, and validation of a model’s effectiveness can take longer.
Mindful to ensure that data is used ethically, and with a vision to scale up their use of machine learning for core credit decisioning across multiple markets, Standard Chartered presented a challenge to the Truera team, to help create a solution that gives greater insight into the machine learning decision-making process, including being able to identify, and therefore mitigate, unjust bias.
Vaman S, Chief Risk Officer, Retail Banking, Standard Chartered, said: “While there are a number of companies that are exploring the issue of explainability with AI models, we were impressed by the strong academic background of the Truera team and their commitment to helping companies translate responsible AI principles into best practice.”
Truera collaborated closely with the Bank’s retail analytics, risk, digital and technology teams on a pilot that focused on one of the Bank’s challenger credit decisioning algorithms which use a combination of traditional data, and with clients’ consent, alternative data.
A first for the Bank, the industry-leading solution that has been developed works across multiple machine learning platforms and is able to pinpoint the specific variables that influence risk scoring. It also has the ability to look for correlations between seemingly impartial variables that can act as proxies for demographic indicators such as race or gender, which could lead to the introduction of unjust bias resulting in unfair decisions.
The Bank will now work with Truera to further develop the software and explore its application across a range of AI use cases.
Vishu Ramachandran, Group Head, Retail Banking, Standard Chartered, said: “Ensuring transparency and explainability in AI-based decision making is not just a competitive advantage for us, but also the right thing to do by our clients. Our partnership with Truera will help us better explain and justify our models, support us in building a stronger and more sustainable business as well as give confidence to both customers and regulators in the fairness of our data-driven processes and outcomes.
Anupam Datta, Co-Founder, President, and Chief Scientist, Truera, said: “We are excited to partner with Standard Chartered to help analyse, improve, and build trust in their AI models with the Truera Model Intelligence Platform. We appreciate the pioneering and leadership role that Standard Chartered is taking with respect to the responsible adoption of AI across all its functions.”
As the use of AI becomes more prevalent, regulators are beginning to issue frameworks around how companies, especially financial institutions, should ensure decisions are fair, ethical, accountable and transparent, with a focus on being able to explain and justify outcomes. Standard Chartered is playing an active role in helping regulators to shape guidelines for responsible use and is a member of the Veritas consortium in Singapore and the Artificial Intelligence Public- Private Forum in the UK.
Truera provides the first Model Intelligence platform, to help enterprises analyze machine learning, improve model quality and build trust. Powered by enterprise-class ArtificialIntelligence (AI) Explainability technology based on six years of research at Carnegie Mellon University, Truera’s platform helps eliminate the black box surrounding widely used AI and ML technologies. This visibility leads to higher quality, explainable models that achieve measurable business results, address unfair bias, and ensure governance and compliance.
Phyno and Flavour have once again collaborated on a new song for Life Lager. After months of teasing, both stars have now released their brand new track titled “Chop Life”.
The two music stars are frequent collaborators with songs like “Vibe”, “Authe” and “Culture”, which also starred the Obiligbo Brothers.
Over the years, Phyno and Flavour have risen to prominence thanks to their impressive blend of highlife and contemporary music, and this new song is a perfect exhibition of the talents possessed by both music stars.
Phyno and Flavour Team Up To Release New Theme Song For Life Lager | www.brandspurng.com
Renowned for rapping in the Igbo language, Phyno, is a native of Anambra State though raised in Enugu State. He initially rose to prominence with a couple of sleeper hits before releasing the smash hit track “Ghost mode” featuring Olamide.
For this theme song, he teams up with Flavour, another indigene of Anambra state who incidentally also grew up in Enugu where he honed his music skills. Flavour’s highlife hits include “Nwa Baby,’’ “Adamma’’, “Ada Ada’’ amongst others.
The track, which is the new theme song for Life lager, has been released to commemorate the beautiful lighting of the Niger Bridge.
The song emphasizes the message of hope and progress that has long been associated with the Life brand while delivering a melodious tune that is sure to get you off your feet.
Recently, Life Lager launched a new campaign themed, Nduka which loosely translates to “Life is Important’’. This campaign sought to emphasize the importance of self-preservation, particularly in the face of a pandemic. This same sentiment resonates with the lighting of the Niger Bridge, as the lights emanate the words “Enjoy Life Responsibly.”
The new theme song has all the hallmarks of a great Nigerian song, and with the brand promising to release a video in the coming weeks, we might be set to see “Chop Life” climb up the music charts. Life Lager has also promised to unveil a video to the song during a live event scheduled for the 22nd of August, 2020.
It was a quiet start for FGN Bonds opening the week, as market participants remained focused on the monthly Bond auction scheduled for mid-week. Tight system liquidity pressured yields at the short-end of the curve, as offers improved for the 2023s paper most notably.
Spreads compressed across most of the benchmark securities, most notably at the mid-end of the curve, bringing yields down by c.29bps on the average at the close of the session.
We expect little market activity in tomorrow’s session, as market participants look to the DMO to dictate the direction of yields at the primary auction later in the week.
Tight system liquidity continued to put pressure on yields in today’s session as appetite for OMO bills dwindled for short-to mid-tenured securities. The long-dated papers remained well bid around 4.00% levels, showing market participants expectations for this liquidity squeeze to be short-lived. Yields expanded by 69bps on the average across the benchmark OMO curve.
We expect the market activities to pick in tomorrow’s trading session, as OMO maturities are expected to ease the selling pressures on yields as system liquidity improves.
Money Markets
OBB and OVN rates dropped by c.175% on the average compared to yesterday’s close, providing little respite to funding positions for local banks. Market liquidity remained tight, opening at c.N88BN positive.
We expect system liquidity to ease up tomorrow as OMO maturities of c.N49bn are credited. Money market rates should, therefore, crash tomorrow, likely below 10.00% levels.
FX Market
The FX space remained poorly supplied across all market segments. The IEFX window continued to trade leanly as trade volumes remained depressed while most market participants stayed bided at N380.00/$ and N386.00/$, causing the closing rate to appreciate slightly by 0.22k D/D.
The Naira weakened further at the parallel market by N1.50k on the average, despite news of the CBN’s commitment to supply FX to BDCs once international flights resume.
Eurobonds
The bull run of the NIGERIA Sovereigns Eurobond curve slowed down in the opening session of the week, as demand for the oil-related papers dwindled despite improved oil prices. We noted wider spreads on quotes for most of the session, but with little trading activity. Overall, yields expanded by an average of c.3bps across the sovereign curve.
The NIGERIA Corporates had a quiet session today although the market continues to show demand interest for the FIDBAN 2022s and ETINL 24s papers.
Seven in ten adults worldwide (70%) say abortion should be permitted, according to a new Ipsos Global Advisor survey of nearly 17,500 men and women from 25 countries.
August 17, 2020 — Seven in ten adults worldwide (70%) say abortion should be permitted, according to a new Ipsos Global Advisor survey of nearly 17,500 men and women from 25 countries.
The survey finds 44% saying abortion “should be permitted whenever a woman decides she wants one” and 26% saying it “should be permitted under certain circumstances, such as if a woman has been raped.” Only 5% say that abortion should not be permitted under any circumstances.
Women’s right to have an abortion is most widely accepted in Europe, with 80% saying it should be permitted. Sweden tops the ranking with an 88% acceptance rate, followed by Belgium (87%), France (84%), and Great Britain, the Netherlands, and Spain (83% in all three countries). Outside of Europe, abortion is most widely accepted in South Korea (79%), Australia (78%) and Canada (77%).
Global views on abortion | www.brandspurng.com
Latin America shows lower acceptance rates with 62% of adults surveyed across the region saying abortion should be permitted. Only 26% of respondents across five Latin American countries agree a woman may have an abortion whenever she wants, while 36% accept that it may happen under certain circumstances, such as rape.
Overall acceptance of abortion in the region ranges from just 48% in Peru and 53% in Brazil to 72% in Argentina – the only Latin American country surveyed where acceptance is above the global average.
Among all 25 countries in the survey, Malaysia is the one where abortion is least accepted. Only 24% of Malaysians polled say it should be permitted either whenever a woman wants it or in certain circumstances such as rape. Malaysia shows the largest proportion of survey respondents saying abortion “should not be permitted, except when the life of the mother is in danger” (48% vs. a global average of 12%).
Women in general and adults with a higher education show higher acceptance, particularly in saying abortion is a woman’s decision.
Ipsos has been tracking global views on abortion since 2014. Results have remained quite steady through the years in most countries. Abortion acceptance has increased significantly in South Korea, Russia and Mexico.
Later this year, Argentina’s Congress is expected to vote on a new abortion bill and, in accordance with a court ruling, abortion should be legalized in South Korea. March 8th saw women actively fighting for their rights in Chile, Argentina and Mexico, as well as other Latin American countries, to mark International Women’s Day.
These are the results of a survey conducted by Ipsos on the Global Advisor platform. Ipsos interviewed a total of 17,997 adults aged 18-74 in United States, Canada, Malaysia, South Africa, and Turkey, and 16-74 in 20 other countries on its Global Advisor online survey platform, between May 22 and June 5, 2020.
The sample consists of approximately 1,000 individuals in each of Australia, Brazil, Canada, France, Germany, Great Britain, Italy, Japan, Spain, and the U.S., and 500 individuals in each of Argentina, Belgium, Chile, Hungary, India, Malaysia, Mexico, the Netherlands, Peru, Poland, Russia, South Africa, South Korea, Sweden, and Turkey.
The samples in Argentina, Australia, Belgium, Canada, France, Germany, Great Britain, Hungary, Italy, Japan, the Netherlands, Poland, South Korea, Spain, Sweden, and the U.S. can be taken as representative of these countries’ general adult population under the age of 75.
The samples in Brazil, Chile, India, Malaysia, Mexico, Peru, Russia, South Africa and Turkey are more urban, more educated, and/or more affluent than the general population. The survey results for these countries should be viewed as reflecting the views of the more “connected” segment of these population.
In addition to providing funding and risk-sharing facilities to MSMEs and Small Corporates through participating financial institutions, the Development Bank of Nigeria has a mandate for building capacity for PFIS and ultimately, Nigerian MSMEs.
In this regard, participants will be equipped with required skills to improve their competence in developing and defending a viable business plan, improve their capacity to access funding, as well as efficient utilization of the funds.
DBN initiated the MSME capacity building programme in 2019 with 100 participants drawn from the 6 geographical zones of the country who converged in Abuja and Lagos for the training. This year, the number has increased to 150 participants and the focus is on impacting Nigerian MSMEs with the resilience needed for survival and sustenance in the wake of Covid-19 global pandemic.
DBN Managing Director, Tony Okpanachi while speaking on the exercise scheduled to take place in phases between August and October 2020, said the initiative is an integral part of the bank’s mandate to drive economic growth by empowering MSMEs with the needed skills to improve their capacity and productivity, especially in the face of the COVID 19-induced economic reality.
According to him“As a Development Financial Institution established to bridge the financial gap through our Participating Financial Institutions, the aim for us is to become Nigeria’s primary development finance institution promoting sustainable growth for the country’s fast-growing population. While funding is a major problem for MSMEs in Nigeria, there’s also the need to equip our entrepreneurs with management skills to ensure they are better structured and able to effectively manage their respective businesses.
He further stressed that“Our strategic focus is providing liquidity, credit guarantee, and capacity building for MSMEs for them to be more productive. The training which started in 2019 is geared towards equipping entrepreneurs across sectors of the Nigerian economy with requisite management skills to develop viable business plans, access funds, and effectively manage their business growth.
Realities enforced on the global economy by the Covid-19 pandemic have affected mostly the SMEs who are major drivers of economic growth. Through this training, we will enhance their entrepreneurial and managerial competencies,”.
He concluded by wishing all shortlisted candidates the very best at the training programme. Development Bank of Nigeria is a development finance institution, established by the federal government in collaboration with global development partners to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.
DBN carries out this function by providing financial institutions, predominantly Deposit-Money and Microfinance Banks with funding facilities designed to meet the needs of MSMEs. The Development Bank commenced operations in November 2017.
The defendant was arraigned on a two-count charge bordering on stealing. The charge is contrary to section 399 (9) of the Criminal Code Law Cap 38, Laws of Oyo State.
EFCC Arraigns Barman for Stealing | www.brandspurng.com
The petitioner alleged that, sometime in August 2019, the defendant who was employed as a Barman and Hotel Attendant at his Hotel- Femfitt Hotels Limited, informed him that his car had a flat Tyre and offered to help him change the Tyre. He reportedly obliged him his car key to enabling him to do so.
The petitioner further alleged that his Barman, rather than change the faulty Tyre, absconded with the car key and stole three Automated Teller Machine (ATM) cards he left in the car and withdrew a total sum of N1,079,290 (One Million, Seventy-Nine Thousand, Two Hundred and Ninety Naira only) from his bank accounts.
When the charges were read to the defendant, he pleaded not guilty.
In view of the plea of the defendant, prosecution counsel, Lanre Abdulrasheed asked for a trial date and prayed the court to remand the defendant accordingly.
Defence counsel, Elume Francis Informed the court that he did not have a formal application for bail and prayed for a short date to enable him to file the application.
He also prayed the court to remand the defendant in the EFCC’s custody.
Justice Taiwo, after listening to the submission of both counsels, adjourned the case to August 20, 2020, for trial and ordered that the defendant be remanded in the EFCC’s custody.
LEKOIL, the oil and gas exploration and production company with a focus on Nigeria and West Africa, is pleased to announce that LEKOIL Oil and Gas Investment Limited, in which the Company has a 90 per cent economic interest, has agreed and executed a Restructuring Offer Letter with its existing lenders, FBNQuest Merchant Bank to restructure its existing secured interest-bearing term loans.
Following servicing of the quarterly amortisations due on 30 June 2020, LOGL had an outstanding balance of interest-bearing term bank loans of US$15.9 million.
This outstanding balance is detailed in the table below:
Lender
Facility Type
Pricing
Maturity Date
Outstanding Balance
FBNQuest Merchant Bank Limited
Term loan with quarterly repayment
LIBOR + 10.00%
30-Jun-21
US$2.0million
FBNQuest Merchant Bank Limited
Term loan with quarterly repayment
LIBOR + 10.00%
30-Jun-21
US$3.4million
FBNQuest Merchant Bank Limited
Term loan with quarterly repayment
LIBOR + 10.00%
30-Sep-23
US$10.5 million
Total debt outstanding
US$15.9 million
FBNQuest and LOGL have agreed to restructure the existing three interest-bearing term bank loans into one secured loan under the following terms:
An extension of loan tenor with new term loan maturity date of 31 March 2024. This represents an increase in the average maturity of the three existing bank loans by 15 months.
Interest will be paid quarterly in arrears with the pricing remaining at LIBOR + 10.0%.
Sculpted quarterly term loan principal repayment delivering a cash saving as compared to the previous loan structures of over US$3.0 million over the next 15 months.
This restructured loan now comprises all LOGL’s outstanding external bank debt.
Lekan Akinyanmi, LEKOIL’s CEO, commented,
“We are pleased with our relationship with FBNQuest who continue to provide strong support as a financial partner in developing our asset portfolio. By restructuring our term loans, we have been able to significantly reduce our near term quarterly amortisations thus providing further flexibility and liquidity for the Company as macro-economic sentiments improve.”
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
The board of the Fidelity Bank Plc, a Nigerian leading financial group, held it’s meeting to discuss the 2020 Audited Half Year Financial Statements of the Lender for the period ended June 30, 2020.
In a notice to the Nigerian Stock Exchange (NSE) last week, it was stated that the board members approved the 2020 Audited Half Year Financial Statements.
However, this is still subject to the approval of the Central Bank of Nigeria (CBN), the regulatory body for the banking sector in the country.
“Please refer to our press release dated June 30, 2020, wherein we notified The Nigerian Stock Exchange (The Exchange) and the General Public of the commencement of the audit of Fidelity Bank Plc’s (the Bank) 2020 Half Year Financial Statements.
Please be informed that the Board of Directors of Fidelity Bank PLC, at its meeting of August 13, 2020, approved the 2020 Audited Half Year Financial Statements, subject to the approval of the Central Bank of Nigeria.
Pursuant to the above, please be informed that the Bank shall notify The Nigerian Stock Exchange and the General Public upon receipt of the Central Bank of Nigeria’s approval for the 2020 Audited Half Year Financial Statements and expects to publish some on or before August 29, 2020.”
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