HENATES

The chances are that Honeywell Flour Mills PLc will end the current year to March 2016 with some honey in the pot in spite of the times. So nine months figures to December 2015 point out clearly. According to the figures released this week, this is in spite of the very tight liquidity position of the company and decrease in income from other sources and from finance. This was because of fair growth in turnover helped greatly by  third quarter yuletide plus sales and in spite of direct cost leap in the same third quarter. Within the nine months, Honeywell's core revenue rose by 5.68% to N39775m from N37636m principally as third quarter chipped in 26.2% growth. Thank goodness third quarter contribution to direct cost growth was not as effective because in spite of 25.3% increase recorded within those three months, the nine months rise here came to only 3.23%to N31675m from N30685m. That heralded honey now in Honey well's pot. This was boosted some more when loss from cu...

The stars in Red Star Express PLC do not seem likely to shine that brightly in the current financial year to March 2016. Or so nine months figures to December 2015 seem to indicate. According to the figures released this week, turnover is not only under pressure but more importantly, direct cost is growing out of tune. Group Turnover from core business eased slightly by 0.03% to N4999.1m from N5000.5m mostly because the company's turnover ended a bit more disappointing when compared to previous levels But Red Star the company ended up being more in control of direct costs as its own increased by only 0.29% to N1997.4m from N1991.6m while the group direct cost increased by 1.95% to N3670.5m from N3600.4m. Thus while group gross profit dropped by 5.11% to N1328.5m. that of the company went down by 4.64% to N860.6m The same was the case with management of overheads. Here. the company's administration and operating expenses dropped by 2.26% to N621.6m from N635.3m compare...

At the start of this blog, Henates stated clearly that you won't be advised to buy or sell any particular equity or stock, instead will be provided with information to decide for yourself. In spite of this many page viewers still ask if Henates can advice on stocks and shares to buy or sell. Henates would rather not but here's how to get the bast out of Henates analysis of company results. At the stock market, stockbrokers quote prices for shares based on their perception of the company's fortunes and the supply and demand. You can stay in step with them by having your own perception of the fortunes of companies you are interested in.This is where Henates analysis of released results come in handy. Now, many form their perception from quick studies especially glances at some quick reference ratios. For example, a company earnings per share shows how much a company made as profit attributable to each issued share. It is from this dividend is recommended by direct...

The revolving board room door at both FBN Holdings plc and its flagship subsidiary, First Bank ltd, has since the year swung open and close to exit and admit directors to their Boards. According to a release from the group, Alhaji Abdullahi Mahmoud, one of the pioneer non- executive directors of the group and the erstwhile managing director of First Bank, Mr Bisi Onasanya have retired from the board of FBN Holdings PLC since December. Appointed to the board since January is Dr Adesola Adeduntan who is also currently the managing director of First Bank ltd. On First Bank itself, erstwhile executive director corporate banking. Mr Adetokunbo Abiru  and Alhaji Mahey Rafindadi Rasheed, an independent non-executive director also retired since December 2015. Hence, says the notice to this effect, to keep within statutory balance between executive and non-executive directors, Mrs Olusola Adeti Oworu (FCA) has been appointed to the board. The statement celebrates her appointment thus:...

The Nigerian Stock Exchange (NSE) will soon acquire the SMART surveillance platform of New York based Nasdag stock exchange. According to simultaneous press releases today in New York and Lagos, the SMART platform will be used to power the NSE's compliance programme. The statement says the platform will provide the NSE surveillance expertise needed to grow and expand the market and also equip it to monitor for market manipulation including "layering and spoofing" Currently, the NSE also uses NASDAQ trading platform as its trading engine. Commenting on the agreement, NSE's General Counsel and Head Regulation, Tinuade Awe esq said: " This development affirms our continuous commitment to protecting investors by creating a fair and orderly market". She added: "As we introduce new asset classes to grow our market, the deployment of a robust, integrated and efficient solution to monitor the increasing complexity of trading activities is imperative" By op...

The international group, PZ Cussons Plc has been hit by the current economic downturn in Nigeria and weaker currencies in Africa and Asia. According to figures for the half year to November 2015 released January 26, the group turnover dropped by only 0.2% to 385.9m pounds but gross profit went down by a higher 1.7% to 45.2m pounds from 46m pounds at the same time in 2014. Thus the group ended the half year with slightly depressed gross margin of 11.7% compared to 11.9% previously. Yet pressure from overhead depressed this further for a closing 10.9% profit margin as profit before tax came to 42.1m pounds, down 3.7% on 2014's half year. Commenting on the figures, PZ Cussons Chairman, Richard Harvey said: "These are a steady set of results in what has been challenging markets with several revenue and profitability broadly flat for comparative period." adding "A strong performance in Europe has offset a more difficult trading environment in Nigeria and the impact of wea...

Now that the Central Bank Monetary Policy Committee meeting has finally decided NOT to devalue the Naira or leave it to market forces, it must be accepted consciously that parasites have done more damage to this economy than any one else. Like the typical parasite, the Nigerian parasites have always been concerned with immediate gains; and alleviating immediate pains, all so long as the juicy source of livelihood remains juicy. The problem comes when the pot dries up or begins to feel the onslaught of the parasites then the real options become clear: They are either removed from the system or the pot will finally dry up and collapse beyond repairs. No doubt the Nigerian economy is in serious depression now because foreign exchange inflow from crude oil sales has dried to a trickle. Thank God for this because it offers golden opportunity to dislodge all parasites. Now which or who are the parasites who must not be allowed to continue to feed on what is left? Simple: Those who have been ...

B.O C GASES: BATON CHANGE SOON. The managing director of B O C Gases PLC  Mr Johann Van Rooyen, may likely resign by March to take up new assignment at Afrox Group. According to a notice signed by the company secretary, Mr G E Oriseh to the Nigerian stock exchange, Mr Rooyen himself announced this at an emergency meeting of the Board of directors held on January 25, 2016 indicating that he may go by March. No one has been chosen to step into his shoes yet but at the same emergency meeting the result of interviews for local directors for the board was also announced to the effect that Mr Oyedele Oyeniyi Olawale be invited to join the board meeting in March. DIAMOND BANK: MRS OKAUNU RESIGNS Mrs Ifueko Omoigui Okaunu has resigned from the board of directors of Diamond Bank PLC. According to a notice to the stock exchange dated January 26, Mrs Okaunu was an independent director and her resignation took effect since October 18, 2015. COURTVILLE BUSINESS SOLUTIONS: SOUR 2015 ...

In what appears to be different strokes for operators of bureaux de change given today's zero tolerance for financial crimes, the Central Bank of Nigeria (CBN) has asked ALL bureaux de change in the country to come forward to collect back their mandatory N35m caution deposit. This is in spite of the fact that recently, while announcing CBN's decision to stop selling foreign exchange to them, the Governor of the CBN Mr Godwin Emefiele had accused some of them of trading above their allowed limits and falsifying mandatory reports to the apex bank. The Governor, Mr Emefiele had said some went as far as supplying false bank verification numbers in the process. However, unless it was a case of giving a dog a bad name to hang it, these allegations remain financial crimes in Nigeria especially when it is remembered that forex round tripping was a major factor responsible for today's Nigerian forex stranglehold. The CBN circular dated January 22 2016 was signed by Mr Kevin ...

The Nigerian stock exchange is now looking for candidates for its 2016 graduate trainee scheme. According to notice posted January 22, it is an 11 months full time programme intended to raise new generation of leaders for the capital market and build global talents locally. It is open to holders of BA, BSc and HND with the following qualities: * higher degree of emotional intelligence * excellent communication skills * enthusiasm * good knowledge of the Nigerian economy * basic knowledge of Microsoft office and * social media savvy. Application is to be submitted on line and closes February 5, thus year.

Seplat Petroleum Development company PLC, quoted in both the Nigerian and London Stock Exchange, apparently struck gold with gas in financial year 2015. According to pre-audited figures release brief sent to the both stock markets, Seplats production of gas rose by about 119% in 2015 compared to only 20% increase in its liquid crude production. In the end combined overall growth in the company's production compared to 2014 came to 41% at 43,372 boepd. The yield from gas activities in 2015 was driven mainly by the commissioning of the Obeng gas plant expansion around mid 2015 leading to significantly higher gas sales and condensate yield especially as gas price was not linked to dropping crude oil prices. Now, says Seplat, 2015 revenue is expected to range between $550m and $600m. In all, Seplat expended $152m as forward looking capital expenditure in 2015 most of it on OMLs 4, 38 and 41 gas development. This was slightly less than $168m expended in 2014 but a remarkable f...

Looking at Nigeria's forex stranglehold today and the need to resort to more efficient scarce resource allocation, it is a wonder that there can still be any help from market forces in today's Nigeria. A very popular one is the market for telecommunications products and services. None can contest now that it was good for government to hands off that industry when it did. A less popular one happens to be electricity generation and distribution. Although the hands off is still having its teething problems, none could contest the fact that the distribution companies are striving to be service providers to valuable customers as against old PHCN perception that the customer was a helpless beggar. Now Nigeria is entering another tricky phase of the recourse to market forces. Kerosine, government says, will sell at a non-subsidised N83 per litre henceforth as against previously subsidised N50 per litre. It is doubtful if any Nigerian will raise issues with the new recommended ...

Right now, the debate is on for and against allowing market forces to determine the value of the Nigerian Naira. Indeed, at the monetary policy committee meeting scheduled for tomorrow, the debate is expected to be a major part of the agenda. It is actually two issues in one: For and against more devaluation and going back to market forces. It is possible that not all who support more devaluation for the Naira now are in support of back to market forces. Hence, the likelihood may be for more committee members to itch for another devaluation if only to hopefully attract foreign investors and make it easier for Nigerians to export goods. Unfortunately, what Nigeria is grappling with today as far the reserve position is concerned is akin to what occurs in a war economy: Extreme scarcity not within government control. From time, during war times all scarce goods and services are subject to rationing and or price control because ultimately, the objective always is for most efficie...

Puzzles are now multiplying under the carpet of the current dispensation in Nigeria. And they are getting harder to crack. The first to emerge was the pattern of voting during the last presidential elections. It was certainly almost 100% no for both incumbent Jonathan and major challenger Buhari in clear parts of the country. Yet after Jonathan conceded defeat, losers who crossed carpet made almost the same statement: We are joining our colleagues in the winning party. Now, according to new INEC boss, it has become clear that in more recent elections, there continues to be a wide gap between voters registered and the ones who collect voters cards and vote. Besides, observed INEC, the 2015 elections were adjudged the best so far in Nigeria yet, it has come up with the greatest number of results annulled by the Tribunals. The puzzles include could it be that birds of the same feather manipulated the results for different candidates in different regions? How come? Yet another ...

Nigeria may end up issuing its first sovereign non-interest bearing bond aka islamic sukuk this year. That is, if the collaborative wishes of the Directors General of Securities and Exchange Commission (SEC) and Debt Management Office (DMO) come true. At the office of the DMO DG, Dr Abraham Nwankwo, during a return courtesy visit by the SEC DG, Mr Mounir Gwarzo both men committed themselves to working together to ensure that the first Nigerian sukuk by the federal government comes out this year. Nwankwo had reportedly told his guest that the plan and dream to issue the first sukuk has been on for three years now and that SEC's support was needed to make it happen. On his part, SEC's Gwarzo was very much game and would establish interface between both organisations and arrange for a nominee DMO staff to participate in the subcommittee on non-interest products of the Capital market committee. They were both convinced that in spite of low crude oil prices, Nigeria's su...

Yes, as analysed two days ago by Henates, investors are yet to fall in love with Nigeria's President Buhari but domestic institutional investors are likely to fall in love faster. Or so the figures published by the Nigerian stock exchange on participation in equity trading in 2015 show clearly. In fact they seemed to have fallen in love in June 2015 as monthly domestic institutional investors participation hit a surprise high of N108.2bn. Before then the average participation was N37.1bn per month between January and April with top actuals being April's N50.8bn and March's N40.2bn. However, this very hopeful participation did not last as monthly participation dived to N32.8bn by July and stayed consistently below N40bn till December 2015's N40.2bn. Compared to N97.5bn domestic institutional investors participated with in December 2014, this was of course more than 50% down. Indeed, year on year the 2015 figure for domestic institutional investors at N497.9bn w...

Alan Gray Africa, exSA Equity Fund Ltd has declared dividend of 2.0848 and 5.1685 dollars respectively for A and E class shareholders. According to the funds directors, the dividends were recommended by the investment managers, Alan Gray International Proprietary Ltd and has been approved and paid to shareholders on the register by December 31, 2015. The two dividends became payable on January 8 after going ex dividend on the 4th under the laws of Bermuda. According to information gathered from the website of the fund, it invests in " focussed portfolio of companies with significant business interest in Africa excluding South Africa" This is regardless of the location of the African stock exchange in which it is quoted. The fund's price is reported in United states dollars but holdings are denominated in various currencies. Henates understands that the fund "aims to outperform African equity markets" and has limited capacity for institutional investors...

UNITY BANK MOVES HQ FROM ABUJA Unity Bank PLC has moved its headquarters from Abuja, Nigeria's administrative capital to Lagos, the nation's commercial and industrial centre. According to an official letter to the Nigerian stock exchange dated January 11 but posted on the exchange's website this week, the move was from plot 785, Herbert Macaulay Way, Central Business District, Abuja to Plot 42, Ahmadu Onibudo street, Victoria Island. Lagos. Approved by the Central Bank of Nigeria since December 21, 2015, the move puts a distance between top executives and  the CBN headquarters in Abuja but nearer many other banks with only strong representation in Abuja even now. FORTE OIL BONUS ISSUE MARCH. The issue of bonus shares to shareholders which has been on the front burner for Forte Oil PLC since last year is finally to be done with by March this year. According to Forte Oil General Counsel, Akinleye Olagbende esq the Securities and Exchange Commission (SEC) has given...

Football may have fallen in love with President Muhammadu Buhari but unfortunately for Nigeria, investors are yet to fall in love with him in spite of his attempts at stable cleaning. Or so the figures released by the Nigerian Stock Exchange on Foreign and Domestic  participation in equity trading in 2015 seem to indicate quite clearly. For one, foreign inflows dried up faster since he was sworn in May. Foreign inflows between January and April 2015 crossed the N50bn mark each month with the exception of January with N48bn. The reverse has been the case since May 2015 with the good months like June and July closing with above N40bn with joy and all else grappled came up with less almost progressively. In August foreign inflow for equity trading dropped to N33bn then further to N29.3bn and N25.3bn respectively in September and October. It recovered to N31.9bn by November before hitting an all year low of N17bn by December. Thus, total infow for equity trading in 2015 came to N...

Do not be surprised if your bank or any other related financial institution charges N50 as stamp duties for each receipted transaction you have with them from now. This is because, as part of efforts to shore up government revenue, they have been asked to immediately in line with laws in existence since 2004. According to a circular from the Central Bank of Nigeria (CBN) banks and other financial institutions are to collect the N50 for stamp duties immediately " in respect of receipts given for electronic transfers and teller deposits" The circular draws attention of the financial institutions to the Stamp Duties 2004, Federal Government Financial regulations 2009 and reinforcement from judgement given in suit no FHC/L/CS/1710/2013.

The audited figures of Daar Communications PLC for 2014 hit the stock market this week so late but came up with one main fact: It was a year the tax man pushed the company into loss league. According to the figures, virtually everything business went well during the year and Daar Communications was set to close with profit but alas, tax liability turned it into loss after tax. From the figures, the company ended December 2014 with profit before tax of N428.4m indicating a dramatic 115.8% leap out of the N2702.9m loss before tax in 2013. However, after providing for N535.4m tax for the year, it ended with N107m loss which shareholders have to bear and hope for shareable profit in another year. Interestingly, there was some good disposition from the tax man too within the year because the bill provided for 25.1% less than the N715m provision made in 2013. In the end, 2014 was one year the company would at worst love to repeat, not go below. It was a year income from all sourc...

When President Buhari came aboard last year, he was quick to declare before the world that Nigeria was broke. Unfortunately that was because he equated government inability to pay with the national economic health. Yes, he had figures and facts that pointed to various governments inability to meet financial obligations including backlog of unpaid civil service salaries and entitlements, unpaid contactor's fees and, in the additional case of the federal government, billions in unpaid fuel subsidy. So, naturally he thought that fixing government finances through recovery of stolen funds, blockage of leakages and shore up of non-oil revenues will do the trick. Based on this assumption, he appointed as finance minister a lady who had a good track of non-oil revenue shore in Ogun state, made the anti corruption a rather personal one and appointed some proven ex-governors as ministers in key ministries. Unfortunately, all that is gradually coming to zero now because he did not qu...

The Securities and Exchange Commission (SEC)  has proposed some amendments to rules and regulations for the capital market which it expects stakeholders to comment on. According to the notice posted on its website dated January 16, such comments should be sent through rulescommittees@sec.gov.ng or through the Director General within two weeks. The first of the proposed amendments affects Rule 51(1) and provides for reports to be filed by capital market operators to cover areas of e filing and reporting period, in respect of statutory returns. Also to be amended are rules and regulations on Real Estate Investment Schemes (REITS) in areas of definition, contribution of REITS, asset allocation, borrowing and contents of prospectus. Under this heading, there are three new proposed rules and all deal with asset allocation. Also being proposed to be changed are rules guiding infrastructure funds especially in terms of definition, applicability, permissible investments, valuation o...

Most quoted banks have since late last year released third quarter results to September but not so for the FCMB Group PLC. Investors and the stock exchange may not get the relevant figures before this month ends. According to update sent  to the stock exchange dated January 15, release  of the third quarter figures is being delayed by interim audit of the Groups banking subsidiary which may be concluded in the fourth week of this month. However, according to Group Managing Director, Peter Obaseki, it is already discernible that the earnings for the period will be lower than September 2014 levels. He attributed this to two significant factors: leap in loan loss provision especially in the energy sector and significant reduction in trade finance related revenue from wholesale banking activities although retail banking showed greater resilience and growth. Thus, he says the current 2016 year will be "characterized by continued growth in retail banking contribution, stabilisat...

Henates continues the series on Nigeria's dormant muscles that should be deliberately developed now the times are hard, with focus on the Federal Institute for Industrial Research Oshodi (FIIRO). Unlike most other research centres in Nigeria, FIIRO had not been that untapped over the years but certainly, it continues to have the potential to do a lot more for the nation like other research centres. From its website, at least there is a list made up 30 companies and organisations in Nigeria that had benefitted from FIIRO research efforts over the years. The list includes well known names like Glaxo Welcome; Cadbury Nigeria, International Breweries, Doyin Group, the National Steel Commission and National Grains Production company. There is one drawback with the list though: It was posted  in March 2012, almost four years ago. Meaning FIIRO had no need to update it in recent years. However, since the Buhari administration, many roads have led to FIIRO especially by those eyein...

Once again, thank God the times are hard, if not last week's order by President Buhari asking the agents of the Economic and Financial Crimes Commission (EFCC) to go after some serving and retired officers would have been unthinkable. One, because affected were top security and military top brass and two, because someone has been forced to turn a blind eye to espirit de corps. Equally important was that the order brings defence spending and contracting under public scrutiny thus risking any attendant consequences. However, it was an order given for real. According to the President's  Senior special assistant on Media, Garba Shehu, the order was a follow up to the second report by the audit committee set up to examine arms and equipment procurement for the military between 2007 and 2015. In this particular report, says Shehu in an online press release, 17 top ranking retired and serving officers of the Air Forces , about 10 individuals and eleven companies were indicted fo...

Henates recent post on seven investment opportunities in Nigerian solid minerals generated some interest hence the decision to post this follow up for those who might be interested in exploring the nation's dormant muscle called solid minerals. According to the Nigerian Investment Promotion commission NIPC, approval of any license for solid minerals exploitation depends on proof of economic reserve of the mineral the investor is interested in. Thus, four steps are required. First, the company in question will apply for certificate of entry into the mining industry accompanied with certificate of registration as a Nigerian legal entity, evidence of technical competence and of financial capacity. Next, will be the application for prospecting right (PR) that should help the company zero in on a particular reserve of the mineral in a particular area. The third step will be to apply for exclusive prospecting license this time from mines office in the State where the reserve is l...

For Vono Products PLC, the financial year to September 2015 was one in which nothing was good enough to turn the tide. In spite of all efforts, it was downhill into greater loss. According to the brief on the year released to the stock market within the week, market continued to shrink and efforts to cage cost continued to amount to little in terms of visible impact. Firstly, it was a year all income sources went down. The 10.9% decrease in core revenue from N889.7m to N793m was depressed further to 14.5% drop in total income because other operating income dived by 77.4% to N11.5m from N50.8m. To worsen matters, direct cost of producing core revenue refused to decrease rising instead by 5.31% to N616.8m from N585.7m. From there on, Vono Products did put up a good fight particularly by decreasing selling and distribution costs by 47.8% to N9.4m from N50.8m and holding administration expenses down enough to secure 4.57% decrease. A close study of how the drop in administration ...

Yet again, thank God the times are hard presently in Nigeria because newly elected President Buhari would have from his inaugural speech announced the fulfilment of his party's promise to distribute N5000 stipend to unemployed youths to keep them going. This mr President would have probably done in view of his perception of himself as the leader who keeps his promises without catching breath to consider its sustainability. Now, thank God for His mercy, Labour Minister Dr Ngige, is quoted as saying that the federal government has had a rethink of this promise and would no longer distribute this as hand outs for being unemployed. Now someone is indeed talking and thinking ahead of political promises and popular perception. However, Mr President should please take the next step to arrest credibility gap that may arise because of this change of heart. Go on air with a national broadcast devoted to the state of the nations economy; giving out solid facts and figures as they are ...

It is still quite a struggle for Juli PLC to get out of the loss league but at least, give it some credit, it continues to try and try. Take the updates on six and nine months sent to the stock market last week, both show very clearly that Juli continues to roll up its sleeves against cost growth but alas, income not only continues to drop, it is more difficult absorbing finance costs. However, the battle to curtail costs bore more fruits in the half year to June then lost some steam come the third quarter. By half year, an 8.41% drop in cost of sale from N57.1m to N52.3m had in fact resulted in hope raising 8.57% increase in gross profit. This was because core business revenue dropped by only 2.82% to N82.7m from N85.1m. But nine months to September ended with a closer call as core revenue dropped by 1.74% accompanied by a higher but comparatively closer 2.05% decrease in cost of sale. Result? Compared to the gross profit increase by half year, a slight 1.03% drop was record...

Guinness Nigeria has added yet another product to its spirit portfolio which came into being only on January 1, after coughing out N2.35bn for Diageo PLC brands exclusive distribution. According to short notice to the stock exchange, Guinness Nigeria said that from February, it will also exclusively distribute spirit brands of United Spirit Ltd which is itself also like Guinness Nigeria, a subsidiary of Diageo PLC. It will be recalled that Guinness Nigeria managing director Peter Ndegwa had late 2015 informed the market about the new portfolio intended, he said, to facilitate corporate ambition to compete across all segments within the drinks market from beer, to nonalcoholic and now spirits. That first move involved take over of Diageo spirit business and outlets in Nigeria at a cost of N2.35bn. It is not known how much this additional arrangement costs.

The e-dividend payment registration campaign by the Securities and Exchange Commission to create awareness in Abuja ends tomorrow, January 14 with a town hall meeting at the international conference centre, Abuja. The campaign started on Monday January 11 with a road show under the watchful eyes of Federal Road Safety officials. It went round with fun and joyful noise while appropriately dressed officials and hired hands distributed fliers, pasted printed sheets and engaged people in impromptu dialogue on e dividend. The show continued on Tuesday and Wednesday with the closing session coming up tomorrow in the form of a town hall chit chat. It will be recalled that investors have 90 days from November 23 2015 to approach their banks to get registered for e-dividend payment for free. Beyond this, they will pay N100 before being registered. Registration process involves obtaining mandate form from banks or registrars, filling it for eventual uploading unto the edividend mandate m...

Once again thank God the hard times are here in Nigeria. At least the Central Bank Of Nigeria (CBN) has been forced by trickling foreign exchange to stop selling dollars to Bureau De Change weekly. According to the CBN governor, Mr Emefiele, the decision takes immediate effect alongside rethinking of the stoppage of dollar deposit taking by banks. They can once again take such deposits. Curiously, it had to take drying up foreign exchange earnings for the CBN to take this decision when from the figures reeled out by mr Emefiele it has been long overdue. Firstly, the number of bureau de change grew from 74 to 2,786 by 2015 with about 150 new applications for license being received daily, without any one raising eyebrow. Secondly, as the numbers leapt, the CBN continued to sell $60,000 monthly to each Bureau de change at official rates, reducing this to $10,000 each when the forex inflow was near rock bottom, again, without any one raising an alarm . Now, says Emefiele, can...

At first glance it looks like what has become known as Dasukigate and Buhari's social welfare programme have nothing in common. Firstly, they are by products of two different Presidential regimes in present day Nigeria. As it turned out, the Goodluck Jonathan administration that was hoped will bring Nigeria lots of luck, came up with Dasukigate as it's most popular gift. It has even elbowed Jonathan's historic no blood must be shed for my political ambition to second place. Buhari, on the other hand came in waving the brightly coloured flag of change which captured minds because a reportedly austere no nonsense new broom was in control. Then with determination to remain a leader who keeps his promises no matter what, he has ended up with his brand of social welfare package that admittedly Nigeria as a nation had never really dreamt of before. So what can a pack of trusted officials reportedly abusing such trust and diverting money meant for arms purchase to other uses...

When muscles are left untested, they wither. Hence, adversity is always welcome because it offers good opportunity to discover and develop hidden strength aka dormant muscles. In the case of Nigeria, dormant muscles are very many because so called oil boom had for too long lured Nigeria and Nigerians into criminal neglect of dormant muscles. In this series, we shall feature Nigeria's dormant muscles hopefully so that now that the going is tough, opportunities so offered can be deliberately tapped. The series takes off with Project Development Institute, better known as PRODA established way back in 1972 after being brought into being by edict no 11 of Eastern Nigeria 1971. It remains an agency established to design, fabricate, assemble or erect and test pilot processes for raw materials and converting same into finished products. PRODA has been an active agency, it is the Nigerian nation that failed to exploit to the fullest its potentials. From the website, Henates gat...

Vitafoam Nigeria PLC, in the year to September 2015, ended up paying the usual price for looking ahead: Higher cost of funds. According to the audited figures released last week to the stock market, group finance cost increased by 26.2% to 1015.3m from N804.8m in 2014 even though the company's own rose by only 7.07% to N765.9m from N715.3m. Apparently, the burden fell more on group accounts because from the look of things, the bulk of money went into new fixed assets for subsidiaries. There was 39.3% increase in fixed assets value for the group from N4173.8m to N5812.6m due apparently to additions as against only 0.24% rise in the company's to N2666.3m. The burden also reflected the group's greater dependence on more costly short term borrowings at a time the company's own balance in this category dropped by 5.77%. Instead, the company depended more on longer term funds growing that by 177.7% to N619.8m while group increase came to only 53.3% from N918.8m to N14...

Remember Usain Bolt, the champion sprinter? Well, John Holt PLC was unlike Bolt in the financial year to September 2015 because it breasted in reverse gear into loss league. According to the brief on the audited accounts released to the stock market recently, the reverse speed would have been higher but for help from subsidiaries. Alone, John Holt the company had landed in gross operating loss of N80m even before finance charges but the group still cruised on with N60m profit. However, even though finance expenses eased by 7.6% to N231m from N250m in 2014, a final loss of N171m before tax was reported eventually by the group compared to N427m profit the previous year The company was more responsible for this as its own loss before tax stood at N311m down 216.9% on the N266m profit in 2014. The only area the company did better than the group was in cost control. For example, the distribution cost of the company dropped by 30.4% to N311m from N447m compared to only 20.2% decrea...

According to the Nigerian Investment Promotion Commission (NIPC) there are seven very bright stars out of 34 potential investment opportunities in Minerals exploitation in Nigeria. According to a post on its website, Nigeria has good quantities of about 34 minerals across the country but only seven stand out with immediate potentials because available quantities will take years to exhaust. Top of the lot, according to NIPC was Gold which is available in several prospects in at least seven states:Cross Rivers; Edo; Niger;Kaduna; Katsina; Kebbi and Zamfara states. Tar sand is next, says NIPC with estimated quantity equivalent to 27bn barrels of crude oil. Tar sand has been identified in 11 states viz Abia; Anambra; Edo; Yobe; IMO; Ebonyi; Benue; Akwa Ibom; Cross Rivers and Borno. Coal also comes into reckoning with estimated 2.7 bn tons waiting to be harvested in Eight states: Benue, Enugu, Nasarawa, Gombe, Edo; Anambra, Abia and Ondo. The NIPC also fingers Iron Ore as having i...

Two capital market operators, BGL Securities Ltd and BGL Asset Management ltd have been invited to appear Securities and Exchange Commission's Administrative Proceedings Committee on February 3, 2016 to defend themselves against infraction charges. According to SEC in a notice dated January 7, 2016, they and their sponsored individuals are to defend themselves against infraction allegations levelled against them by 10 investors. It is alleged that they committed infractions of the Investment and Securities Act 2007, SEC rule and regulations and code of conduct for capital market operators. Specifically, according to SEC, it has been alleged that they performed capital market functions without due registration; promoted and marketed products not registered by SEC; failed to resolve clients complaints and furnished SEC with false and misleading information. Being invited before SEC administrative committee is always a serious matter given the antecedents of previous decisions...

The Nigerian National Petroleum Corporation (NNPC) is to interconnect all its offices and stations across the country via an internet network and so has asked for bids from interested service providers. According to bid document posted on the NNPC website simply dated December 2015, the search is for service providers to provide " MPLS and internet service connectivity to her locations to enable effective communication and collaboration, also to extend shared services to her user enterprise-wide.." "The network" it added " should support any to any communication between sites" The services to be provided include fully meshed any to any MPLS network; bandwith provision, installation, configuration, hardening and maintenance support. Also included are integration with LAN/WAN; proactive monitoring and reporting capacity, training etc " with service level agreement binding the bidder/service provider to maintain uptime and application /service co...

A graduate of economics and member of the Nigerian chartered institute of stockbrokers, Mr Tajudeen Folaji has been sent to jail for seven years for unauthorized sale of a client's shares. According to a notice on the website of the Securities and Exchange Commission (SEC), Tajudeen Folaji was the managing director and dealing clerk of First Allstate Securities ltd when he committed the offense. According to the notice the conviction was handed down by Justice Kudirat José of Lagos state High Court for unauthorised sale and conversion of 31,886,200 shares in IPWA PLC worth about N331.3m belonging to an investor on April 3, 2008. The court also directed the Economic and Financial Crimes Commission (EFCC) to trace and liquidate properties belonging to the convict to reinstitute the investor while imposing a N20m fine on First Alstate Securities ltd, his employers at the time of the illegal sale and conversion. Following formal complaint by the affected investor, SEC had inves...

A new list of approved capital market operators (CMOs) has been released by the Securities and Exchange Commission of Nigeria (SEC) dated January 3, 2016. According to SEC these were the CMOs that met new minimum capital requirements as verified through substantiated compliance claims. They were verified based on audit queries raised by audit firms. The list was made up of 429 CMOs; 826 capital market consultants and six regulatory organisations. The six regulatory organisations include three for securities exchange viz Nigerian stock exchange; NASO PLC and FMOQ OTC PLC; two commodity exchanges and the Central Securities Clearing and Settlement ltd. The 826 consultants were mostly solicitors with reporting accountants and estate surveyors and valuers following from a distance in that order. Amongst the consultants, there was only one commodity trader and broker: Taraba Investment and Property ltd and one property manager: UACN Property Development PLC. Even though almost ha...

Mr Joseph Odion Umolu has assumed duties as company Secretary at Flour Mills PLC with the dawn of 2016. He replaced Olalekan Saliu who has retired. Umolu is a lawyer called to the bar in 2000. He holds a BA in Philosophy from the University of Ibadan and a first degree in law from the University of Lagos. He also obtained a masters in law from the university of Lagos after being called to the bar. After a brief spell as managing counsel, Gocuz chambers, he joined the Nigerian civil aviation authority in 2003 as senior legal officer. He later moved to Union bank legal department rising eventually to position of manager. He joined Flour Mills as manager legal services in 2012 and before his elevation he was head, group legal services and also assisted the company secretary as group compliance officer. His appointment took effect from January 1.

The final list of quoted companies removed and replaced with new ones was released in the wee days of 2015 by the Nigerian stock exchange while many were busy with preparations for the yuletide. This means that variations you may notice in the affected indices from this week could be partially because the weight distribution in the valuation basket has been affected, even if slightly. This is because the out and in companies have different market capitalisation and are priced fairly differently too. Also brokers perception of them differ and also different is their fortunes. However, attempts must have been made to ensure distortions due to the annual review of basket composition is minimal. Indeed, the intention is to make each sectoral index more reflective of market realities. According to the Nigerian stock exchange no changes were made in the baskets of the consumer goods index; banking index; industrial index and oil and gas index even though such was in view during the r...

The Central Bank of Nigeria (CBN) has directed operators under its supervision to renew their license or apply for new ones by paying relevant paying relevant fees online into designated accounts it has opened for same. For example, according to circular dated December 31, 2015 issued by Director Financial policy and regulation department, Kevin N Amugo, finance companies and bureau de change have been directed to pay these fees into two separate designated accounts the CBN has opened for them. The circular demanded compliance saying that it is in line with cashless policy now in place . According to figures obtained from the CBN this means that the 958 micro finance companies and 2839 bureau de change approved across the country by December 31, 2015 will have to renew their licenses accordingly when due and forward proof of payment by email to licensing.fprd@cbn.gov.ng . This might make renewal easier especially for the ones operating far away from Abuja or major CBN office. ...

A new managing director has taken over at downstream petroleum company, MRS Oil PLC since January 1, 2016. He replaced Mr Paul Bissohong who has gone back to the group. Gbodume comes aboard with many years of experience in top level auditing, finance, insurance and banking.. He was Assistant General Manager with erstwhile African International Bank in charge of financial control  for five years and joined MRS Oil as AGM finance and corporate planning in 2007. He was appointed Director special duties in 2008 and acting managing director, MRS Investment Co ltd in July 2010. By May 2011, he became executive director, finance and administration for MRS Oil before his present appointment.

Trading helped the fortunes of the Nigerian Energy Sector Fund in the year to March 2015 more than anything else. The truth is if trading had chipped in loss like it did in March 2014 year, there would been no  talk of fair profit for the period. According to the brief on the year released late 2015, there was 187.2% recovery from the trading loss of N32.1m in 2014 to N28m trading income. Unfortunately, no other income growth fell in step with this and to worsen matters operating expenses jumped from N21m to N96.3m. Increase in interest income was 8.28% from N93m to N100.7m although still representing the top contributor to the income pool. Dividend income dropped by 25.5% to N5.96m from N8m in 2014 year. Finally, no income from other sources was recorded compared to N46.7m contributed by this source previously. In the end, total income grew by only 16.4% from N115.6m to N134.6m. Then in view of the leap in expenses, profit before tax dropped to N38.3m as against N94.6m in 20...