Relocation of Okobaba Sawmill: LASG appeals to Stakeholders

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Relocation of Okobaba Sawmill: LASG appeals to Stakeholders

The Lagos State Government has appealed to stakeholders of Okobaba Sawmill in Ebuta-Metta to support the government in its efforts to successfully relocate the market to a more suitable place in Agbowa.

The appeal was contained in a statement issued on Tuesday by the Office of the Commissioner for Physical Planning and Urban Development, Dr. Idris Salako.

He urged the sawmillers, residents and the Oloto family to be patient with the present administration as well as allow peace to reign in the community, saying that the government would continue to dialogue with all stakeholders for a lasting solution while the relocation process is on-going.

Explaining that the government is conscious of the exigencies of moving the market from its present location, Salako explained that plans are in place to deliver enduring infrastructure that would not only ease business at the Agbowa Timbervilla but also address the challenges faced by stakeholders at Okobaba.

Salako reiterated that the relocation of the sawmill became necessary to address the environmental challenges resulting from the existence of the market in Okobaba, noting that the new location will have tailor-made infrastructure that will boost sawmilling business in alignment with the T.H.E.M.E.S. vision of the Lagos State Government.

The Commissioner gave an assurance that the Ministry has already streamlined the process for actualising the relocation from Okobaba to Agbowa-lkosi, maintaining that movement to the new site will commence during the first quarter of the year 2020 as earlier scheduled.

Visa To Acquire Plaid for $5.3bn

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Visa To Acquire Plaid for $5.3bn

Visa Inc. (NYSE: V) announced it has signed a definitive agreement to acquire Plaid, a network that makes it easy for people to securely connect their financial accounts to the apps they use to manage their financial lives. Visa will pay a total purchase consideration of $5.3 billion to acquire Plaid.

Plaid’s products enable consumers to conveniently share their financial information with thousands of apps and services such as Acorns, Betterment, Chime, Transferwise and Venmo. Consumers rely on these apps and services to help plan their spending, increase their savings and monitor their investments. For example, when a user sets up a Venmo account, it is Plaid that enables the user to link their bank account to their Venmo account.

Connectivity between financial institutions and developers has become increasingly important to facilitate consumers’ ability to use fintech applications. 75 percent of the world’s internet-enabled consumers used a fintech application to initiate money movement in 2019 versus 18 percent in 2015. Plaid has been a leader in enabling this connectivity at scale. Today, one in four people with a U.S. bank account have used Plaid to connect to more than 2,600 fintech developers across more than 11,000 financial institutions.

“We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business,” said Al Kelly, CEO and chairman of Visa. “Plaid is a leader in the fast-growing fintech world with best-in-class capabilities and talent. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.”

“Plaid’s mission is to make money easier for everyone, and we are excited for this opportunity to continue delivering on that promise at a global scale,” said Zach Perret, CEO and co-founder of Plaid. “Visa is trusted by billions of consumers, businesses and financial institutions as a key part of the financial ecosystem, and together Visa and Plaid can support the rapid growth of digital financial services.”

Visa’s acquisition of Plaid represents both an entry into new businesses and complementary enhancements to Visa’s existing business. First, Plaid’s fintech-centric business opens new market opportunities for Visa both in the U.S. and internationally. Second, the combination of Visa and Plaid provides the opportunity to deliver enhanced payment capabilities and related value-added services to fintech developers. Finally, the acquisition will enable Visa to work more closely with fintechs through all stages of their development and drive growth in Visa’s core business.

“This acquisition is the natural evolution of Visa’s 60-year journey from safely and securely connecting buyers and sellers to connecting consumers with digital financial services,” said Kelly. “The combination of Visa and Plaid will put us at the epicentre of the fintech world, expanding our total addressable market and accelerating our long-term revenue growth trajectory.”

Once closed, the combination of Visa and Plaid is expected to provide significant benefits to developers, financial institutions and consumers.

“We have strong relationships with both Visa and Plaid. The combination of Plaid’s capabilities with the security and scale of Visa’s global network will provide us with exciting opportunities to enhance our products,” said Dan Schulman, president and CEO, PayPal.

“We believe Visa’s acquisition of Plaid is an important development in giving consumers more security and control over how their financial data is used. Protecting customer data and helping them share that information safely has long been a top priority for Chase. We look forward to partnering with Visa to continue building a great experience for our shared customers,” said Gordon Smith, co-president, JPMorgan Chase and CEO of Consumer and Community Banking.

The transaction is subject to regulatory approvals and other customary closing conditions. Visa will fund the transaction from cash on hand and debt issuance at the appropriate time. This transaction will have no impact on Visa’s previously announced stock buyback program or dividend policy. The transaction is expected to close in the next three to six months.

Visa Inc. to Announce Fiscal First Quarter 2020 Financial Results on January 30, 2020

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Visa Inc. to Announce Fiscal First Quarter 2020 Financial Results on January 30, 2020

SAN FRANCISCO – Visa Inc. (NYSE: V) will report its fiscal first-quarter 2020 financial results on Thursday, January 30, 2020. The results, along with accompanying financial information, will be released after market close and posted on the Visa Investor Relations website.

Visa’s executive management team will then host a live audio webcast beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss financial results and business highlights.

All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on Visa’s Investor Relations website for 90 days.

Visa is currently in its customary “quiet period” during which time company executives will not be interacting with the investment community. This quiet period will be in place until fiscal first quarter 2020 earnings are released on January 30, 2020.

GTBank’s Quick Credit Offers Loans to Customers at 1.33%

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GTBank’s Quick Credit Offers Loans to Customers at 1.33%

Guaranty Trust Bank (GTBank) Plc has announced a reduction in the interest rate for a set of credit facility it offers.

The lender, in a notice to its customers on Tuesday, said it has reduced the interest rate for the loan obtained under its QuickCredit package to 1.33 percent monthly from the previous 1.75 percent.

According to the financial institution reputed to support retail businesses, especially those in the Micro, Small & Medium Enterprises (MSME) sector, the new interest rate was derived from 16 percent per annum.

GTBank stated that customers who wish to apply for the Quick Credit loan offering should “simply dial *737*51*51#.”

“We are pleased to inform you that the interest rate on QuickCredit is now 1.33% monthly. This means that the effective interest rate on Quick Credit is now 16% per annum,” it said.

Last year, the Central Bank of Nigeria (CBN), which regulates the banking sector in the country, pushed banks to offer loans to their customers, giving them the percent of their deposits that should be given out to support the economy.

In July 2019, the CBN gave banks in the country till September 30, 2019, to increase their loan to deposit ratio 60 percent and after the expiration, 12 lenders were fined nearly N500 billion.

According to the CBN, the 12 affected lenders had their fines deducted from their Cash Reserve Requirement (CRR) domiciled with it (CBN). The CRR is a portion of the banks’ deposits kept with the CBN for regulatory reasons.

After the first deadline elapsed, the apex bank raised the LDR to 65 percent and gave all the banks till December 31, 2019, to meet up or be fined.

“All DMBs are required to attain a minimum LDR of 65 percent by December 31, 2019, and this ratio shall be subject to quarterly review to encourage SMEs, retail, mortgage and consumer lending, these sectors shall be assigned a weight of 150 percent computing the LDR for this purpose,” a circular from the CBN had said.

This year, the central bank has retained the LDR at 65 percent after the expiration of the second deadline last month, saying it has noticed a remarkable increase in the size of gross credit by deposit money banks (DMBs) to customers.

“Accordingly, the CBN has decided to retain the minimum 65 percent LDR in the interim. All DMBs are required to maintain this level and are further advised that average daily figures are to be applied to assess compliance going forward,” the apex bank said.

However, it stressed that “DMBs (Deposit Money Banks) are further encouraged to maintain strong risk management practices regarding their lending operations.”

Much Ado About the Challenges & Prospects of E-commerce Growth in Africa

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Much Ado About the Challenges & Prospects of E-commerce Growth in Africa

Key Players Championing Digital Skills in the E-commerce Industry

Since the advent of electronic commerce (otherwise referred to as e-commerce) in Nigeria in 2012, one can safely say that there has been a steady growth trajectory in that sector overtime.

Nigeria’s Experience

For a sector largely driven by innovation within the financial system and more importantly, the information and communication technology (ICT), Nigeria’s voyage into that space has been rather momentous.

It is, however, instructive to know that the advent of e-commerce didn’t just happen out of the blues. With the benefit of hindsight, the precursors of e-commerce in the West including the Amazon, Alibaba, and a host of others, wanted to do away with the traditional platforms for commerce made up of the brick and mortar, which in their own thinking was no longer serving them well, and therefore they felt compelled to lead a rather uncharted territory which, in their own estimation, could still deliver even greater value.

While acknowledging the fact that e-commerce has come a long way as far as its operational activities are concerned in more advanced economies where ICT infrastructure is not taken for granted, the same cannot be said of Nigeria, where it faced several teething problems.

The Upsurge in E-commerce Activities in Nigeria

Many players came into this space but sadly, not many of them are still around today. However, the recent upturn in e-commerce enterprises across Africa is believed to be revolutionizing in not just the retail market but also business in general. As of July 2019, Nigeria had a population of 198 million people, of which 112 million were Internet users, placing the penetration rate at 56%, according to the Jumia Mobile Report.

According to McKinsey, the Nigerian e-commerce sector was estimated to be worth US$13 billion in 2018 and is projected to reach $75 billion in revenues per annum by 2025.

Interestingly, some of the rave-making online shopping stores in Nigeria in terms of service, excellence, coverage, and popularity include the following: Jumia, Konga, and Payporte.

A recent independent study and field survey by the Africa Internet Group through listed Senegal, Kenya, Morocco, Mozambique, Nigeria, South Africa, and Ghana as the top seven African countries gaining momentum in e-commerce.

Africa Internet Group is a shareholder in online retailer Jumia and nine other e-ventures but Jumia, however, remains its best-known venture. Since its inception in Lagos in 2012, Jumia now operates in 11 African countries selling everything from diapers to iPhones and microwaves.  In 2016, the venture-funded company reached a billion-dollar valuation and reported revenues of $149.6 million in 2018. In April 2019, Jumia listed on the New York Stock Exchange (NYSE) at a valuation of $1.1 billion and recorded a surge in sales arising from its NYSE debut.

Konga was set up in 2012 as a competitor to Jumia, selling a wide range of products from home appliances to groceries. It merged with Yudala in May 2018 but continued to operate under the Konga brand name.

It has been recorded by an online researcher, e-marketer, that while online retail in the US and China is growing at 12% and 20% respectively, it is less than 1% in Africa.

The slow growth of e-commerce in Africa is due to the many challenges facing the Continent. Notable among the challenges are the issues of funding and logistics. Also identified is the issue of the continent’s non-existent legal framework to regulate e-commerce.

In Nigeria, some of the logistics challenges include poor road networks and traffic gridlock which are predominant in most commercial cities in Nigeria. This is also the reason why it takes between five to seven days for some major players to deliver goods to customers. The lack of basic infrastructure, power supply, and expensive broadband internet greatly inhibit the rapid growth of e-commerce. Nigeria’s erstwhile notoriety for online fraud has further hindered growth. However, Jumia introduced its own payment platform JumiaPay a few years to counter this challenge and reassure consumers on its platform of the safety and security of their financial details.

Thankfully, the sector which was hitherto unregulated, with room for impunity now has extant laws to guide its operations.

In 2015, the Federal Government signed the Cybercrime Bill into law to prohibit and prevent fraud in electronic commerce. The purpose of the Cybercrimes Act of 2015 extends beyond prohibiting, preventing and criminalizing online fraud, but also prescribes punishments and sets the institutional framework for enforcement. The goal is to protect e-business transactions, company copyrights, domain names and other electronic signatures in relation to electronic transactions in Nigeria.

Irrespective of the problems identified above, there are tremendous opportunities for e-commerce growth and investment in Nigeria. The ease with which the evolving middle class in Nigeria has access to internet-ready devices – affordable smartphones, tablets, phablets, and computers – is complementary to the growth of e-commerce.

There is enough room for investors (local and foreign) to tap into the buoyant e-commerce space in the country. For instance, Jumia and Facebook partnered last year to train a handful of people on how e-commerce works and how they can start selling online. The creation of digital jobs and services platforms in the country would augur well both for Nigerian youths and investors. And it is commendable to see that Jumia is already committed to this cause. In the retail and consumer products sector, while many wealthy Nigerians still travel abroad for their shopping, the key market target is the evolving middle class in Nigeria. There is a rapid transition of the low-income class level to the middle-class level, and with the growing population of the country, the market is large and opportunities abound for investors in Nigeria’s e-commerce space.

Importance of Financial and Tax Management for Startups

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Importance of Financial and Tax Management for Startups

Startup businesses all over the world are experiencing a boom in various industries ranging from manufacturing, transportation, hospitality and even the financial industry. In Nigeria, there has been a significant increase in small businesses. It is also important to note that small businesses make up a very large portion of the Nigerian economy. Startups have influenced innovation and contributed to the economy in various industries. The Founders of such business in Nigeria focus on creating innovative ways of providing solutions to perceived problems while relying heavily on the use of technology. Nigeria, being an emerging economy, provides a viable market for startups to thrive. Despite all these, research has shown that only 30% of startups will make it to their tenth year based on several reasons. Some of such failures range from wrong business model to no market for the product, poor financial management, ignoring tax compliance etc.

This article, however, focuses on problems resultant from a poor understanding of financial and tax management for startup businesses in Nigeria. Most times, startups fail to keep proper financial records of their business from inception. The Founders focus primarily on the product and market development but fail to understand the underlying financial flow of the business. This is key to the success of the financial and tax management of the business. Owners of these businesses fail to see financial and tax management as a tool necessary to build the foundation of their businesses. Thus, they do not allocate adequate and sufficient resources to bookkeeping and finance department.

Importance of Financial and Tax Management

Most startups rely heavily on investors, whether Angel investors or Venture Capitalist (VC) in raising funds to develop their products and services, grow their business and limit their investment risk in series of investment rounds. However, Investors majorly depend on Financial Statement (FS) to determine whether the business is viable for investment. Therefore, startups must keep records of all transactions which will be analysed into reliable and meaningful financial information for investors to make the decision.

Proper financial management also provides sufficient information to help startups determine their tax liabilities and implement a favourable tax plan for their business. Often times, most startups fail to comply with tax laws and regulations largely due to the lack of financial information. Some others even fail to register for federal and state taxes. As the business continues to grow with a huge profit, the businesses are exposed to large tax liabilities and penalties, which may eventually cripple the survival of the business.

Y2020 ACADEMIC SESSION: Lagos Begins Sale Of Admission Forms

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Y2020 ACADEMIC SESSION: Lagos Begins Sale Of Admission Forms

The Lagos State Examination Board has commenced the sale of forms for admission into the 16 State Model Colleges/Upgraded Junior Secondary Schools with boarding facilities for the year 2020/2021 academic session.

According to a release by the Director of the Board, Mr Supo Gbadegesin, a screening test will be conducted for all applicants seeking admission into JSS1 in any of the 16 Model Colleges in the State.

He explained that the Screening Test is based on Paper Pencil Testing (PPT) and Computer-Based Testing (CBT) versions, adding that any candidate that passes the test and meets the required cut-off marks would be offered admission irrespective of his/her first or second choice of schools.

Gbadegesin stressed that only Primary Six pupils who will attain the ages of 10 and 11 years by June 2020 in both Public and Private Primary Schools are eligible to participate in the Screening Test.

The Director, therefore, implored the Parents/Guardians, Headteachers and Proprietors/Proprietresses in both Public and Private Schools to register their wards/pupils for a fee of N10,000 per head as from 13th January to 30th April 2020, adding that late registration scheduled for May 4 – 15, 2020 would attract a fee of N15,000 per candidate.

He disclosed that the Computer-Based Test (CBT) will be held at ICT Room, Lagos State Examinations Board from Monday 25th to 28th May 2020, while the Paper Pencil Test (PPT) will hold on Saturday 30th May 2020 at 43 designated centres across the State.

LASG Equips LNSC Vehicles with First-Aid Kits

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LASG Equips LNSC Vehicles with First-Aid Kits

The Lagos State Government has provided first aid kits to operatives of the Lagos State Neighbourhood Safety Corps (LNSC) to enable the prompt provision of initial first-aid treatment to victims of road and other unforeseen accidents in the State.

Speaking during the handing over ceremony of the kits at the Safety Arena, Oshodi, the Commissioner for Special Duties and Inter-governmental Relations, Dr. Adewale Ahmed said the presentation of first aid kits was borne out of the government’s desire to encourage the use of first-aid treatment at the local level through the provision of the materials in all LNSC Cars, Jeeps, Motorbikes and Bicycles operating across the State.

Ahmed, who was represented at the event by the Permanent Secretary in the Ministry, Dr. Yusuf Jimoh explained that since the agency is strategically positioned to meet the needs of the various communities in the event of emergencies, it would require the necessary equipment and skills to ensure the safety of lives and property of residents.

“To carry out these functions effectively, the 2,554 cars, Jeeps, Motorbikes, and bicycles earlier procured by the government for the Agency would require the supply of first aid boxes and the training of the corps members on first-aid treatment”, he added.

Reiterating government’s resolve to the protection of lives and property in the State, the Commissioner stated that Governor Babajide Sanwo-Olu had earlier approved the distribution of 1,285 first aid boxes and bags for all LNSC operational vehicles and motorbikes.

According to him, “The first-aid kits contain materials and non-prescription medicines that are administrative and useful in saving the lives of victims of fire disasters and road accidents among others”.

On the training of the LNSC officers responsible for manning the vehicles, Ahmed disclosed that they will be handled by BHS certified professionals from the State’s health facilities and will be trained at the Auditorium of the Safety Arena complex.

While enjoining all officers to avail themselves the opportunity of the training, he implored the trainees to reciprocate government’s gesture by dedicating themselves to the protection of lives and property in all communities across the State.

On his own part, the Chairman of the Lagos State Neighbourhood Corps, Mr. Israel Ajao (DIG) encouraged the Officers to be law-abiding and do all that is in their power to protect and secure residents of Lagos State.

Nigerian Ventures Secured Highest Investment in 2019 – WeeTracker Report

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Nigerian Ventures Secured Highest Investment in 2019 – WeeTracker Report

It has been an eventful year for Nigeria, starting off in January 2019 with a multi-million round investment in one of its notable Edtech companies, Andela.

It is, therefore, no shocker that as the year came to a close, Nigeria stood out as the top destination for VC investment, recording USD 663.24 Mn in total funding garnered.

Though a reduction in the number of deals from 136 to 97 was observed, the amount of venture capital channelled into the country was well over USD 500 Mn more compared to that in 2018.

This could be owed partly to the fact that its top three deals were all valued over 100 Mn. Apart from the USD 100Mn round secured by Andela, Nigeria saw USD 120 Mn going into Opay as well as a 20% acquisition deal worth USD 200 Mn of Interswitch.

Needless to say, the top two deals were from the fintech sector, one of the sectors that put Nigeria on the African entrepreneurship map. Fintech recorded 32 deals, but to bring this point closer to home, 50% of the total companies that raised USD 1 Mn and more in Nigeria were fintech companies.

Nigerians Spent Approximately ₦7 Billion On Cinemas In 2019

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Nigerians Spent Approximately ₦7 Billion On Cinemas In 2019

Nigerians spent over 6, 976, 882, 087 billion naira to watch films in the cinemas in 2019.

The News Agency of Nigeria (NAN) reports that the figures are according to data provided by cinemas and gathered by the Cinema Exhibitors Association of Nigeria (CEAN).

The year opened with ‘Aquaman’, ‘Chief Daddy’ and ‘Up North’ sitting on the top three of the chart, with estimated combined earnings of 168, 263, 512 million Naira.

Earnings remained low for February, making it the lowest grossing month with a total of N291.8 million.

By March, viewership picked up steadily and the earnings were almost doubled from that of February leading to a total of 434, 432, 431 million Naira.

NAN reports that earnings from April climbed from 186, 929, 188 million Naira in its third week to 342, 382, 389 million Naira in its final week.’

The month closed with estimated total earnings of 734, 151, 060 million Naira due to a major boost from Disney’s ‘Endgame’.

In May, there was a massive dip in earnings similar to that experienced in February. With ‘Endgame’, ‘The Intruder’ and ‘Longshot’, it earned a total of 367, 498, 554 million Naira.

June opened with 161, 132, 714 million Naira but closed with 100, 663, 647 million Naira leading to a total earning of 576, 322, 779 million Naira.

In July, the highest-grossing film for the period was ‘Bling Lagosians’. The film grossed the highest income in cinemas in June. In the first week of July, the movie earned N37.4million.

For the last weekend in August, ‘Bling Lagosians’ settled at number 20 with ‘Once Upon a Time in Hollywood’ struggling at number 19. ‘The Set Up’ had dropped to number five.

NAN reports that cumulatively, the cinemas earned over three billion naira in the first half of 2019 and over 1.2 billion naira in July and August of the same year.

In September, ‘Angel Has Fallen’ topped the box office with a gross of 40, 434, 564 million naira. It was followed by ‘Fast and Furious: Hobbs and Shaw’ and Nollywood film, ‘The Millions’ which debuted at number three, raking in N10, 046, 476.

‘Angel Has Fallen’ remained on top for the second week with ‘Hustlers debuting at number one in the third week. By the end of the month, cinema earnings had dropped by 13 percent with ‘Rambo: Last Blood’ at number one.

In October, ‘Love is War’ started strong with 14, 228, 280 million naira in its first week. ‘Fast and Furious: Hobbs and Shaw’ sank to the bottom in its 10th week. The same was the case for ‘The Lion King’ which was in its 12th week.

However, ‘Joker’ snagged the number one spot by the second week of October with the cinema gross totalling to 83, 703, 650 million naira that week.

By the third week, ‘Gemini Man’ pushed ‘Joker’ to second place and Nollywood’s ‘Elevator Baby’ debuted at number three.

NAN reports that at the final week, the top four films were ‘Maleficent’, ‘Black and Blue’, ‘Gemini Man’ and ‘Joker’ in that order with ‘Elevator Baby’ at number six. The total gross was 88, 063, 047 million naira.

November opened with ‘Terminator: The Dark Fate’ on top raking in 37, 267, 747 million naira. ‘Maleficent’, now in its third week, earned 18, 459, 252 million naira in second place.

Nollywood was at sixth place with ‘Elevator Baby’ which made 4, 298, 150 million naira and ‘Living in Bondage: Breaking Free’ debuted in its first weekend at number seven.

In the second week, ‘Living in Bondage’ sat on top in its first full week and made 48, 692, 825 million naira pushing ‘Terminator’ to second place. ‘Elevator Baby’ dropped to number eight and the week closed at 114, 331, 989 million naira.

‘Living in Bondage’ continued its winning streak and suffered only seven percent decrease but was pushed to second place by the end of the month by ’21 Bridges’. ‘The Ghost and the House of Truth’ debuted at seventh place.

December opened with ‘Living in Bondage’ redeeming its number one spot, followed by ’21 Bridges’ and ‘Frozen 2’. The total gross for the week was 85, 863, 384 million naira which was a 100 percent increase.

By the third week, there was another 44 percent increase with ‘Jumanji’ debuting and making 58, 131, 872 million naira and ‘Your Excellency’ grossed 36, 652, 637 million naira.

The last week saw a 110 percent increase with ‘Merry Men 2’ pulling in 94, 241, 491 million naira in its first week. ‘Sugar Rush’ debuted and made 92, 585, 385 million naira.

NAN reports that for the last quarter of 2019, cinemas made 326, 503, 084 million , in September, 342, 795, 751 million naira in October, 960, 234, 641 million naira in November and 1, 023, 321, 652 billion naira in December.

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