HENATES

The pilot of the Youth Innovative Entrepreneurship Development Programme (YIEDP) launched by the Central Bank of Nigeria on March 15, has taken off with Heritage Bank Ltd as the sole anchor for now. Henates gathered that a portal has been opened by Heritage Bank through which youths who qualify for the programme can access more information and formally apply. Under the intervention scheme, serving youth corpers and those who were discharged not more than five years ago qualify to apply. All they need to do is come up with creative business ideas and bankable business plans to access N3m soft loan as an individual or N10m for a group of between 3 and 5 youths with similar ideas. Those who were discharged up to five years ago will provide their tertiary institutions certificates and NYSC discharge certificate as collateral while serving ones will pledge their discharge certificate and their institutions certificates. In addition legal ownership of the sponsored business shall r...

Electricity generation and distribution is still undergoing trying moments in Nigeria especially with regards to adequacy of generation and supply, billing and infrastructure upkeep. The situation naturally assumed new proportions after the privatisation of the sector in the dying years of the last administration in Nigeria. However, to help customers get fair treatment from electricity supply companies, the Nigerian Electricity Regulation Commission has come out with a bill of customers rights of sorts. For example, no customer or community is to pay for replacement or repair of damaged equipment or poles used in electricity supply. Signed and released by the Acting Chairman / Chief Executive Officer of NERC, Dr Anthony Akah, the document itemises issues customers can complain about if they are not satisfied especially with the bills they receive. 1) All new connections must now be done strictly on basis of installing meter before connection. 2) Customers who elect to pay ...

For Wema Bank PLC, all was well that ended well in 2015 but solely because non-core business refused to cave in. According to the audited figures released not too long ago, there was a marked 12.2% decrease in interest income within the year from N35453.2m in 2014 to N31128m. To make matters worse, interest expense increased by 14.8% to N19408.5m from N16901.3m in spite of the decrease in interest income. The net effect of this was reduced a bit by 12% drop in the bank's impairment provision to N77.6m from N88.2m. However, the real game change occurred as income from net trading grew by 109.5% to N1781.8m from N850.6m,  as income from other sources rose by 83.2% to N1217.6m from N664.5m and as fee and commission increased by 8.54% to N5664.3m from N5218.5m. Hence, in spite of the drop in core income, Wema Bank's operating income rose by 5.01% to N26461m compared to N25197.4m in 2014. However, the advantage of this was lost later especially as other operating expense...

For Trans-Nationwide Express PLC the year 2015 was good but cash management made it better According to the audited figures for the year, it was a good thing that the company reduced its overdraft by 67.3% in 2015 from N18.1m to N5.91m and so ended with 7.38% decrease in finance costs to N5.52m from N5.96m. This turned out to be Trans-Nationwide's icing on the cake that made it much more tasty. The core revenue of the company had grown by 11.2% to N798.6m from N718m  with cost of sales happily lagging behind with only 5.14% growth to N310.7m from N295.5m. This resulted in 15.4% rise in gross profit to N487.8m from N422.5m that was dampened by 56.7% drop in income from other sources to N1.59m and  almost at par increase in administration costs, up 10.1% to N408.2m from N370.7m. That was when the drop in finance costs came in handy to grow profit before tax by 52.9% to N75.7m from N49.5m. That meant that Trans-Nationwide profit margin closed the year at 9.46% as against 6...

Going through the 2015 audited accounts of United Capital PLC reminded Henates all through of an inverted pyramid, you know the type that has a  relatively small base. From almost every angle, the figures reflected a group that was dependent a lot less on its core company. For example, according to the figures released not too long ago, the group gross earnings as given in the accounts was N6153.7m, compared to N3087.1m for the company in 2015. In 2014, the weight was distributed the same way with group gross earnings coming to N4676.6m as against N2236.7m for the company. Much the same way, at every level of income stream, the group got less and less from the company with the lone exception of dividend income from subsidiaries which was zero for the group in 2015 and 2014 but chipped in N1950 and N1008m into the company coffers in both years respectively. Yet, in terms of expenses, the push that resulted in key growths came from the company. For example, personnel expenses...

The financial year 2015 was not so sterling for Sterling Bank PLC but it was one in which a fair fight to stay in control paid some dividends. According to the year's audited figures released recently, what Sterling bank lost in higher interest expense, higher impairment charges and also higher other operating costs it gained in solid increase in net trading income, and overall decrease in total expenses driven by decrease in general administration expenses. Interest income had risen by only 3.82% to N80908.7m from N77932.1m outshined by 18.5% jump in interest expense to N41367m from N34915.4m. Then fee and commission income dropped by 3.78% to N15522.3m from N16132.9m leaving net trading income 57.4% rise to N10650m from N6765.2m to single handedly grow net operating income with some help from 9.33% increase in other operating income to N3112.9m. With impairment charges growing by 10.3% to N8151.3m from N7289.2m, it was now the business of marginal 1.92% decrease in total expense...

The business of selling comfort to customers was relatively tough for Transcorp Hotels PLC in 2015 but the company had its own comfort zone from which to scale through with flying flags. According to the audited figures released earlier this month, group core business revenue dropped 7.45% to N13979.3m from N15104.8m but the first stage of its comfort zone composition was 114.2% rise in finance income to N594.8m from N277.7m. This was made possible greatly by N2410m deposit for shares by shareholders. Even though the 4.09% decrease in cost of goods sold to N3362m from N3505.4m did not match the core revenue drop, Transcorp Hotels firm hold over administration costs then sealed the year's happy ending. Administration expenses decreased by 20.5% to N5943.2m compared to N7476.6m in 2014. Hence even before the growth in finance income was taken into account, 8.21% decrease in gross profit to N10647.4m had been reversed to 12.2% rise in operating profit to N4783.2m from N4262.3m. In the...

When Unilever Nigeria board of directors decided to recommend 5kobo per share dividend for the year 2015, they were only offering a lever of hope for the future. If not, there was nothing to cheer in 2015 performance talk less of bankrolling shareholders' smile to the bank. According to the audited figures released with the proposed dividend news, in 2015 Unilever Nigeria's profit before tax dropped by 38.4% to N1771.1m from N2873.2m in 2014. Besides, final profit attributable to shareholders tumbled by 73.3% to N762.4m from N2860m. The growth in the company's revenue was fair in the light of the tough times. Total revenue was up 6.56% to N59601.1m from N55928.4m supported greatly by non-core income growth as core revenue rose by 6.22% to N59221.7m from N55754.3m. Unilever Nigeria's had issues with all cost heads except marketing and administration which grew by only 4.35% to N13641.2m from N13044.8m. That is, behind revenue increase. On its part, cost of good...

In line with London Stock Exchange requirements, Seplat Petroleum PLC, also quoted on the Nigerian Stock Exchange, has announced share awards to its executive directors for 2015 financial year. According to a release from the company, no consideration was paid for the shares and none is due on them in the future. Benefitting were the Chief Executive Officer, Mr Austin Avuru, Chief Operating Officer Mr Stuart Connal and the Chief Finance officer, Mr Roger Brown. They got 134,849; 56,935 and 56,935 shares respectively as bonus due to 2015 performance of the company and in line with remuneration package approved by shareholders since 2014. Under the package 25% of annual bonus paid for a financial year is deferred into shares and released in three years subject to continued employment with the company. The shares are restricted from being sold and are nominally vested on the third anniversary of each award. Which means that those awarded in 2014 become fully vested from 2017. ...

More companies have announced proposed dividends for the year 2015 in spite of the tough times that prevailed throughout the year. UNILEVER NIGERIA PLC Proposed.             5 kobo per share Payment date.     5/5/2016 Closure date.        11/4/2016. AGM date.            Unstated AGM venue.          Unstated. TRANSCORP HOTELS PLC Proposed.        40.85 kobo per share Closure date.   5/4/2016 AGM date.        15/4/2016 Payment date.  18/4/2016 AGM venue. Transcorp Hotels Abuja. TRANSNATIONWIDE EXPRESS PLC Proposed.          10 kobo per share Closure date.      13/7/2016 Payment date.     5/8/2016 AGM date.            21/7/2016 AGM venue.         TBA

Two more quoted companies in Nigeria have warned the investing public of likely drop in profit for the financial year 2015 when compared to 2014 performance. SKYE BANK PLC In a notice dated March 23 and signed by executive director/company secretary, Mrs Abimbola Izu, Skye Bank PLC has warned of likely drop in it's 2015 performance. Skye Bank said in the notice that management " wishes to intimate shareholders and investors....of anticipated decline in its profit for 2015" This, it added, was " attributable to management decision to recognise increased impairment on loans to sectors severely affected by the prevailing economic headwinds which are yet to abate especially the lull in oil and gas and real estate sectors" Skye Bank then assured that it has "designed and commenced appropriate remedial process to salvage the affected assets as soon as possible" In the maintain time, it remains committed to growth prospects in the retail and SME s...

A quick glance at the figures released by AXA Mansard Insurance PLC of Nigeria recently could lead one into a trap: Concluding by saying Thank God for subsidiaries. It will be wrong. Very wrong but could be an inevitable conclusion on discovering that while AXA Mansard the company settled for only about N3.62 gain on N100 total income in 2015, the group closed with more than twice that figure: N8.93. Of course, both figures represented drops on 2014's N10 for the group and N5.82 for the company. By implication thank God for subsidiaries was also applicable in 2014. Now here is the source of the trap. The company had nothing like gain from fair value on investment property in both years while the group reported N892.1m gain here in 2015 though down 41% on the N1513.3m recorded in 2014. Apparently, this tilted the scale considerably although equally important was the higher 12.7% increase in group gross premium income to N16891.2m from N14889.1m compared to the company's ...

There are two major events related to the Nigerian capital market coming up next month. These are: FIRST 2016 CAPITAL MARKET COMMITTEE MEETING The first capital marker committee meeting for this year is being organised by the Securities and Exchange Commission (SEC) Nigeria on April 13. According to a notice from SEC Nigeria, it will take place at the Federal Palace Hotel, Lagos from 10 am. Attendance will be by invitation only and expected to attend are the following persons: 1. Chief executive officers of all registered capital market firms and professional groups. 2, Chief executive officers of all registered trading platforms and exchanges in Nigeria 3. Representatives and observers from government agencies and other stakeholders and 4. Chairmen of the Senate and House of Representative committee on the capital market. Bonafide members of the committee will be required to show their membership IDs while others will be strictly by invitation. SEMINAR ON CAPACITY ...

In spite of tough 2015 financial year, more companies announced proposed dividend recently. STERLING BANK PLC: Proposed.       9 kobo per share Qualification date: 1/4/2016 Closure date.     4-8/4/2016 AGM date.         19/4/2016 Payment date.   19/4/2016 AGM Venue      Eko Hotel & Suites Victoria Island. ASHAKA CEMENT PLC: Proposed.      15 kobo per share Qualification date.   25/4/2016 Closure  date.            26/4/2016 AGM date.                  10/5/2016 Payment date.            11/5/2016 AGM Venue.  Transcorp Hilton Hotel Abuja. UNITED CAPITAL PLC: Proposed.           35 kobo per share Closure date.      31/3/2016 AGM date.          14/4/2016 Payment date.    18/4/2016 AGM venue   Eko Hotels & Suites. Victoria Island.

In trying times, it really matters for company managers to be in firm control as much as possible. Dangote Sugar Refinery PLC just proved this for itself in 2015 and ended up weathering the storm of the year fairly well. First, even revenue outside its control had dived dangerously. Income from other non core operations dropped by 59.4% to N1332.8m from N3285.4m while investment income almost dried up going down 95.8% to N11.9m from 2014's N285.6m. Even surplus from fair value adjustment of financial assets decreased too but by 10.2% to N1349.2m from N1502m. To make matters worse, finance charges developed wings to N664.9m from N106.4m previously. This was at a time core revenue grew by only 6.54% to N101057.9m from N94855.2m and total income even grew less by 3.83% to N103751.8m from N99928.2m. Yet, Dangote Sugar ended the year with 8.35% increase in profit before tax to N16548.3m from N15273.2m. Though less than a double digit growth that meant Dangote Sugar gained N1...

The financial year 2015 was indeed tough for Glaxo SmithKline Consumer Nigeria PLC because almost everything danced outside played tunes. According to the audited figures released recently, both core revenue and total income grew grudgingly, investment income took a dive, while most costs rose ahead of income growth. Core revenue had risen by 0.37% to N30634.7m from N30521.7m only to end up with even a lower (0.28%) increase in total income to N30668.6m from N30580.6m. This was because investment income dropped by 43% to N33.9m from N59.5m. Yet in spite of this cost of goods sold rose by 2.99% to N20308.5m decreasing gross profit by 4.4% to N10326.2m. In addition 32.4% increase in administration costs to N2886.4m from N2179.6m and 1.07% rise in selling and distribution costs to N5699.5m applied more pressure on the company's bottom line. The end result would have been worse than the 57.9% drop in profit before tax recorded eventually to N1157.5m from N2752.2m. It was ...

PZ Cussons Nigeria PLC is feeling more heat from the kitchen in the current financial year. According to half year figures released recently income from non-core business managed to stop drop in core revenue from translating into same pace drop. To make matters worse, only direct cost headed the way of core business drop, overheads and finance cost did otherwise. The half year figures show that total income decreased by 4.03% to N50865.2m from N53003.6m despite 4.22% drop in core revenue to N50656.9m from N52889.7m. This was as income from other sources rose by 82.9% to N208.3m from N113.9m. First, even the corresponding drop in cost of sale recorded at 2.81% was short of the revenue drop but then, half bread is always better than none. It closed at N37461.7m from N38542.4m. Secondly, overheads increased by 5.07% to N10873.5m from N10349.3m  and net finance cost leapt to N390m from N129.9m in 2015 first half. No wonder, PZ Cussons ended the half year with N4.21 gain on ea...

That in spite of tough 2015 Access Bank PLC did not have to issue any alert about its profitability was due mainly to two life lines it held on to within the year: Gain on its investment securities and net gain from foreign exchange. According to the audited figures released not too long ago, both bank and the group did not score well in cost management and as provision for impairment rose by 22.1% and 25.2% for the group and bank respectively, the saving grace came from both life lines. Interest income had risen by 17.5% for the group to N207802.8m from N176918.2m but this had been overwhelmed by 33.2% increase in interest expense to N102421m from N76801m. At 15.3% the growth in the bank's interest income was even less while interest expense increase at 32.6% was almost level with the group's. It was within the same 2015 the bank outpaced  the group in most costs in terms of growth. The group's personnel cost rose by 35.2% to N42347m compared to 39.9% increase by...

There is one farce in today's LA Farge Africa inherited from recent years: It is becoming increasingly difficult to grow the company's profit and by extension, bottom line. Or so the audited figures for 2015 released recently alongside 2014 show quite clearly. The thing synergy shown between the main company and its subsidiaries have in recent years not been able to grow the bottom line. The subsidiaries seem to be better at growing gross revenue and caging cost especially of the direct kind but still end up dragging profit margin from safer heights clocked by the company. In 2015, total income of LA Farge Africa increased by 30.9% from N268235m to N276511.8m as other operating income grew by 78.3% to N7294.9m from N4090.9m on top of only 2.46% rise in core revenue to N267234.2m. In contrast, the company's total income increased by only 11.7% to N120699.2m from N108076.3m although core revenue grew by 8.28% to N114558.2m. More glaring contrast was the 13.5% incr...

LA FARGE: NEW CEO A new group chief executive officer, Mr Michel Puchercos has been appointed for La Farge Africa PLC with effect from April 1, this year. He takes over from Mr Peter Hoddinott whose resignation from the board takes effect from March 31. Mr Puchercos had returned to La Farce since 1998 after branching out in 1992 after a three year first stint. He had joined La Farge in 1989 as a director of Orson, a subsidiary, from the French Agriculture Ministry then branched out to work in various other positions across food and chemical industries in Europe. From coming back as Director strategy and information systems for Gypsum division, he moved to Cement division in 2003 as director cement strategy until he was reassigned from 2005 to 2009 as managing director of Bamburi cement before being posted as CEO La Farge South Korea Japan operations. BOARD CHANGES AT RED STAR EXPRESS With effect from April 1, three new faces will be on the board of directors of Red Star E...

In spite of the trying times for banking and finance in 2015, Zenith Bank PLC closed the year with its view of the peaks still intact though blurred a little. According to audited figures released to the stock market, major blows came from 20% increase in impairment charges, 15.6% rise in interest expense as interest income rose by lower 11.1% and 10.3% increase in operating expenses. All of these percentage were ahead of 7.24% rise in gross earnings from N403343m to N432535m Zenith, the bank actually recorded an even lower 6.62% increase in gross earnings thus leaving subsidiaries with the job of moving it one digit up. The group's interest income had closed at N348179m compared to N313422m previously while interest expense grew to N123597m from N106919m. Impairment charges, on the other hand, ended at N15673m from 2014's N13064m although, remarkably the bank's own provision dropped by 10.5% to N11091m from N12392m. The third of the blows was as operating expense...

For companies like Nestle Nigeria PLC, it was rather doubtful if financial year 2015 was that tough. According to the audited figures to December 2015 released recently, Nestle Nigeria rather built a safer nest for itself through good grip over all costs. It ended the year with only 5.45% growth in overall income to N151715.3m from N143880.6m as finance income 19.5% drop watered down 5.54% increase in core revenue from N143329m to N151271.5m. However, this resulted in 15.6% increase in operating profit and final 19.9% rise in profit before tax in a year the more popular mantra was profit drop or loss. But how come? Simple. First direct cost of producing the goods sold rose by only 2.23% to N83926m from N82099.1m. Then among overheads, marketing and distribution cost increased by 4.93%, again behind revenue growth. It ended the year at N25905.6m compared to N24688.3m previously. Thus, as administration expenses rose by 4.81% to N7693.7m from N7340.4m, the foundation for the ...

In spite of the tough economic environment in Nigeria in 2015, some companies are paying dividend. Here is an update on latest ones: AXA MANSARD INSURANCE PLC Proposed            2k per share. Interim paid before 3k per share Total                    5k per share Qualification date 28/4/2016 Register closure.    29/4/2016 Payment date.        13/5/2016 AGM date.                13/5/2016 AGM Venue Oriental Hotel Victoria Island. ACCESS BANK PLC Proposed.         30k per share Interim paid before 25k per share Total                  55k per share Closure date    13/4/2016 Payment date. 27/4/2016 AGM date.        27/4/2016 AGM venue.      TBA ZENITH BANK PLC Proposed.           155k per share Interim paid before 25k per share Total.                   180k per share Closure date.      29/3/2016 AGM date.            6/4/2016 Payment date.      6/4/2016 AGM venue.  Banquet Hall, Civic Centre Victoria Island. UNITED BANK FOR AFRICA PLC Pro...

The financial year 2015 posed such a challenge that Dangote Cement PLC did not end it well the way its cement products comes up with concrete. There was loss of grip on all costs and naturally, the bottom line ended thinner. According to the figures for the year released not too long ago, Dangote Cement ended the year with 24.6% growth in total income from N425813m  to N530495m even as income from non core business dragged with a sluggish 9.48% growth to N3951m. That was good enough for a tough year but it got watered down considerably by leaps in costs. First direct cost increased by 41.1% to N201808m from N143058m, followed by 35.1% and 30.5% increase in administration and selling and distribution costs respectively. Administration expenses ended the year at N32546m from N24084m while selling and distribution cost came to N53500m from N41004m. On top of this, with finance income rising by only 13.5% to N34819m from N30565m, finance cost leapt by 64.8% to N54347m from N32978...

Like some quoted companies in recent past Ecobank Transnational Incorporated (ETI) has hinted that its profit for 2015 will be lower than it had projected publicly in the third quarter of the year. According to the alert sent to the stock market, ETI "expects to report materially lower profit for the year 2015 for a number if reasons: 1) The macro economic challenges faced by most African economies, lower crude oil prices, depreciating currencies, monetary and fiscal bottlenecks, due to global developments negatively impacted expected revenue growth. Thus revenue growth in 2015 will be below our target guidance. 2) Also, higher impairment losses were recognised in the last quarter of 2015 across our loan portfolio " It added " Based on the aforementioned, we expect our full year 2015 profit in dollar terms to be lower than the (first) 9 months to 2015 reported profit". The notice added that the full 2015 audited results will be announced in April followed ...

NEW DIRECTORS FOR ZENITH BANK. Two new non-executive directors have been appointed to the board of Zenith Bank PLC subject to the approval of the Central Bank of Nigeria They are Professor Oyewusi Ibidapo-Obe, and Mr Gabriel Ita Asuquo Ukpeh. Professor Ibidapo-Obe was until February 15 2016, the Vice Chancellor of Federal University Ndufu-Alike Ikwo Ebonyi state. He was also a full VC of the University of Lagos and holds a doctorate in civil engineering with specialisation in applied mechanics/systems from University of Waterloo Ontario, Canada Mr Ukpeh was until recently partner/risk leader for Africa at Pricewaterhousecoopers (PWC). He is a fellow of the Chartered Institute of Accountants of Nigeria (ICAN) and an acclaimed consultant in business strategy process engineering. Meanwhile, Zenith bank is to pay 155 kobo per share final dividend on April 4 once approved by shareholders at annual general meeting scheduled for the same date at Banquet Hall Civic Centre Victoria I...

That financial year 2015 was tough in Nigeria, no one doubts now but companies responded differently. In the case of Guarantee Trust Bank (GTB) PLC the most natural thing was to issue a self guarantee to ensure a fair ending. According to the audited figures released to the stock market on Friday, GTB more or less read the year well and did the immediate needful. Sure like most big banks in Nigeria, its loan impairment provision took a leap within the year in view of macro economic depression but like a cork sailing in troubled waters, it stayed afloat all the same. GTB's loan loss provision increased by 74.8% from N7098m in 2014 to N12408m with the flagship company in fact growing its own provision by 90.3% to N11769m. For a group that recorded only 8.38% rise in gross earnings to N301851m from N278521m, this was indeed a huge load to carry. To make matters worse, interest expense growth at 19% to N69290m was well ahead of interest income growth (14.3% to N229239m) and f...

Diamond Bank PLC has issued an alert on 2015 significant earnings and profit drop due to higher than expected provisions on some loans. In a notice posted on the stock exchange website last Friday issued by Ifeatu O. Onwuasoanya, head, Investor  Relations, the bank declared: "The continued deterioration in Nigeria's macroeconomic conditions has resulted in Diamond Bank PLC recognising higher than expected impairment charges on loans made to the energy and commercial sectors" Hence, the notice added, preliminary indications are that earnings for 2015 will be lower than in 2014. The bank assured that the full audited figures for 2015 will be released before the last day of this month. It added that in spite of the 2015 developments, the quality of its loan portfolio remains high. In addition, to mitigate the impact in the current year, Diamond Bank said significant changes have been made to its operations principally to drive down costs. So coupled with invest...

The Central Bank of Nigeria (CBN) has come out with the draft of a comprehensive guide to approved banks and other financial institutions charges in Nigeria and stakeholders comments are welcome. According to a noticed dated March 11 and signed by Mr Kevin N Amugo, CBN director financial policy and regulation, all comments put in formal writing should be sent to Regulation department director at most by March 29. Those inclined to send soft copies of their comments can also do so through abcreview@cbn.gov.ng . The draft is indeed comprehensive and covers all aspects and virtually all charges attendant on banking and finance operations on behalf of customers. It could however, be grouped into four groups for easy and popular appreciation. These are transactions for which there should be no charges; the ones in which charges are flat and fixed; the ones negotiable with minimum or maximum limits and transactions in which only attendant cost recovery is allowed. Services or trans...

In spite of years of losses, it appears there is hope yet that Ellah Lakes will someday find its way out of the loss league. Sure, from the half year figures to January 2016 released a few days ago, Ellah Lakes is on its way to yet another loss but this time, second quarter figures offered a ray of hope. According to the figures, at half year, the obvious trend points towards another loss this financial year as 32.5% rise in turnover to N28.9m from N21.8m was overshadowed by 67.3% increase in cost of sale to N17.2m from N10.3m. Overhead in the other hand increased by far lower percentage (14.3%) to N21.1m from N18.5m. This though could not stop Ellah lakes from 36.1% higher loss of N9.43m compared to N6.93m loss by half year of 2015 financial year. Thus by January 2016 Ellah Lakes was already losing N32.6 on each N100 sales recorded compared to N31.8 previously. Consequently, shareholders fund was already down by 1.82% but huge reserves as usual continue to ensure their inves...

Trying to ascertain the total income of Wapic Insurance PLC in 2015 was like walking through a maze of crisscrossing streams. Of course its core income was easy to ascertain. According to audited figures released this week, Its gross premium increased by 30.7% to N6148.8m from N4704.2m but as it turned out, that came to only about 60% of Wapic's estimated total income. Down the road it is also easy to find fee and commission earned (up 32.9% to N429.8m from N323.4m); investment income ( down 5.42% to N1376.3m from N1455.2m) then it gets a bit tougher. Looking closely you then find more income streams. Some come up with significant figures like net profit on financial assets which raked in N1124.8m compared to N0.17m loss in 2014; and other operating income ( up 5.46% to N390.1m from N369.9m). Far less significant streams show up too like profit on investment contract (N6.18m in 2015); and net fair value of assets (N3.6m as against N14.7m loss previously) However just when...

A massive and highly sophisticated attempt to defraud the Central Bank of Nigeria (CBN) has been uncovered and aborted. According to the banking Acting director of corporate communications, mr Isaac Okorafor, in a signed press release, the attempt involved a transaction which has been aborted. He declared: Although preliminary investigations so far have not revealed any accomplices within the CBN, management has decided to place all key personnel involved in the transaction on suspension. This is to ensure a full and unfettered investigation" Mr Okoroafor assured the public that the bank's security is  intact and has not been breached. But for long is a key question which begs for answers in view of present day facts. Fact one: Technology to secure the vault of most if not all financial institutions including the CBN on line is man made and at best always pose challenge to hackers. Fact two: Introducing the Treasury Single Accounts (TSA) with so much noise and fan...

Do you as a Nigerian run short of money most of the time? This could be because like majority of Nigerians, you do not keep track of your expenses. Or so the Central Bank of Nigeria survey report released this week indicate. It shows clearly that most respondents hardly keep track of their expenses. To the question do you keep track of your expenses, about 53% of respondents either had only a rough idea of their expenses within the last week or don't even know at all. Those who claimed to have a rough idea came to 26.9% while 26.5% had no idea at all of last week expenses. On the other hand, only 20.4% said they knew exactly their last week expenses was and another 26,2% had a fair idea. The situation was only slightly different when asked if they know how much was available to them day by day . Again the majority or this time, 50.7% said they had a rough or no idea at all while only 24 claimed to know exactly how much and 25.3% had a fair idea. But do not get the wrong...

It appears that any Nigerian not inclined to paying the children's school fees when money is short, is an uncommon Nigerian. According to the recently released Central Bank of Nigeria survey report, when faced with financial crises only 0.7% of respondents to the survey conducted in 2015 will choose not to pay the children school fees in an effort to cope. Decoded, by 2015, payment of school fees for whatever reason was top priority for most Nigerians. Even though the survey found that Nigerians were more inclined to save rather than borrow, 39.5% of respondents will rather borrow in order to cope with financial crises. On the other hand, 24.5% will rather deep into savings or save more to handle the situation while 16% of respondents will engage in extra work to earn extra income; 10% will decide to sell an asset and only 5% will resort to forgoing essentials. Interestingly, talking of borrowing majority of respondents would rather reach out to family and friends or even...

From all indications equity investors are still scared of Nigeria under Buhari but the scramble to get out seems to have come to an end. According to January figures of domestic and foreign portfolio participation in equity just released by the Nigerian stock exchange outflow has dropped and inflow barely down on December 2015 levels. The outflow in January 2016 was N26.36bn down 23.2% on N34.3bn in December and 48.4% on N51.08bn by January 2015. But then, inflow did not show awakening love yet. It stood at N17.01bn in January this year just slightly down on December's N17.04bn and more remarkably by 64.6% on January 2015 when Jonathan was still in power. And it was not just a question of in and outflow from the country alone. Total domestic and foreign portfolio participation in equity by January this year at N84.1bn was 55.7% down on January 2014's N189.72bn and 22.9% below N110.56bn in December 2015. Interestingly, it is domestic investors who are still more scared...

Shareholders and the investing public who hope for distributable profit from Computer Warehouse Group PLC (CWG) in 2015 financial year had better forget it and look towards 2016. According to a notice sent to stock market by CWG's chief financial officer, Mr Obianjulu Ezeh, there is going to be " overall loss in the year 2015" for the company. This was mainly because the Board of Directors of the company has announced that " a number of significant one-off charges" have to be made in other to present a true and fair view of the company's state of affairs by December 2015. These charges include: 1) Provision for loss recorded due to volatility in the Nigerian foreign exchange market and consequent drop in the value of the Naira within the period. 2) Provision for write off of obsolete inventory particularly the company's investment in VSAT and MPLs network already made obsolete by new technology and changes in business model. Hitherto, CWG was a p...

According to a major finding of the recently released Central Bank of Nigeria report on its 2015 survey was the fact that Nigerians will rather save than borrow. Respondents to the survey were asked whether they have any form of saving or not, 84% of them said they have. A slightly higher percentage male respondents (85%) than female (82%) were in this category. However, for both male and female there was almost equal unpreparedness to apply for a loan or credit. Of the respondents, only 36% indicated having any loan or credit at the time of the survey. Broken down further 37% of the male respondents fell into this group while the female percentage at 35% was lower. The average Nigerian's preference for saving became clearer from the survey's findings about their attitude to savings. To the simple question do you save as much as you would? 84.6% said they do not while only 15.4% of the respondents were satisfied with their level of saving. This was more or less conf...

Households in which there are sole breadwinners putting food on the table is getting scarce in Nigeria. By 2015 only 24.9% of Nigerians were sole breadwinners. That is according to one of the various findings of the Central Bank of Nigeria financial literacy baseline survey conducted in 2015. The report of the survey was released this week. According to the report, 33.6% of the Nigerian male population are still sole breadwinners just like 16.1% of female Nigerians. However, 55.8% of respondents to the survey actually now have household income contributed to or provided by more than one person. Of the male 51.8% now have household income contributed to by more than one member while 62.4% of female respondents live with the same household arrangement. If the findings of the survey turn out to be error free and reflect truly the larger population of the country, then only 18% of Nigerians by 2015 did not contribute to household income. Interestingly for an African setting, 14...

By 2015, that is after 55 years of self rule, about 25.7% of Nigerians depended on family or friends for their survival. That is, they get their highest income from this source monthly. Besides, in addition to this, 1.6% of Nigerians received their highest income from their pension. Or so indicates the report of the survey conducted by the Central Bank of Nigeria in conjunction with local and international support teams indicate as one of its findings. According to the report, more than one third of Nigerians(34.4%) earn their highest income from agriculture related activities. They were either employed in someone else farm, involved in trading in agricultural goods or farming on their own farms. From the figures, three main sources sustain majority of Nigerians (80.4%). These are income from own farms (which sustains about 29.6%); own business (which sustains 26.1%) and support income from friends and family. Naturally, in view of their cultural role in the family, more fema...

By 2015, 56.5% of Nigerians earned the national minimum wage of N18,000 per month or less, according to survey findings released by the Central Bank of Nigeria this week. The survey was conducted in 2015 with support from the Bureau of National Statistics; Enhancing Financial Innovation and Access (EFinA); and Marketwarx Africa as part of efforts to provide base data and information for actions to increase Nigeria's financial inclusion to 80% from 53.7% by 2020. According to one of the numerous survey findings, the majority of Nigerians earn N18,000 or less monthly with the bulk or 45.2% actually earned N12,000 and below monthly. Besides, about 4.2% of Nigerians had no income at all with the distribution of this being fairly the same between urban and rural dwellers but made up more of female than male. However, not less than 81.1% of rural dwellers earn only N18,000 or less monthly while only 42.1% of urban dwellers fall into this category. It is when the income bar is r...

In spite of very good efforts, Greif Nigeria PLC had reason for some grief over how 2015 finally ended aside from loosing its longest serving board member, if not Nigeria's longest, to death. The renown Gamaliel Onosode who died last year became a non executive director of Greif Nigeria in 1974 and he remained on the board till his death. That is for 41 years. Yes the Management did try to end the year better. Core revenue had risen by only 2.26% to N805.4m from N787.6m and finance income had gone down by 7.69% to N4.92m from N5.33m thus closing overall income growth at 2.19% from N792.3m to N810.3m. In spite of these, good cost control led to only 0.97% increase in cost of sale to N656m from N649.7m. More importantly, administration cost was driven down 29% to N56.2m from N79.2m leaving only selling and marketing alone to apply pressure on the company's bottom line. It increased by 27% to N4.75m from N3.74m. However, in spite of all these Greif Nigeria ended 2015 with ...

Virtually all the credit for Champion Breweries PLC final jump from the loss league in 2015 year goes to the real champions: Shareholders for injecting new funds. According to the figures for the year released last week to the stock market, this saved the company from paying any interest to banks in 2015 compared to 2014 when N1287.6m was paid as finance cost. The fact was that 2015 profit before all forms of taxes came to N248.4m, a figure which could have so easily been wiped out if Champion Breweries had paid even one quarter of its 2014 finance charges in 2015. Within the year new shares had been issued at a premium increasing share capital by 8.74% to N3914.7m from N3600m and premium reserve by 10.2% to N9093.8m from N8251.9m. However, management also deserves some credit especially over 6.03% decrease in cost of sale from N2662.5m to N2502.1m in a year core revenue from the goods sold increased by 6.04% to N3501.8m from N3302.3m. Unfortunately, that was about the only c...

It looks like one state where product marketers  and other stakeholders can be sure of reaching more motorcycle riders than vehicles in Nigeria is Ogun state. According to official figures of number plates issued in recent years, Ogun state was the only state where the number of plates for motorcycles consistently was ahead of vehicle plates. In 2013, according to statistics from the National Bureau of Statistics, 45521 motorcycle plates were issued compared to 16165 for vehicles. In 2014 the corresponding figures were 51180 for motorcycles and 18620 for vehicles. In 2015 there was a drastic drop in both figures but trust that motorcycles plate numbers issued was still ahead. In all Ogun state recorded 14954 plates for motorcycles and 6913 for vehicles. It was the only state out of the 36 and even including Abuja that was that consistent. Others had times when vehicle plates issued overtook motorcycle ones. This excludes Lagos state though with no figures for 2014 and 2015 in...

In the financial year to December 2015, African Prudential Registrars PLC had no compelling reason in these trying times to be prudent but it tried to be any way and it paid off. According to the figures for year sent to the stock market this week, it continued to depend on three income streams and two did fairly well. Core income grew by 7.43% when compared to 2014 figure for the group. It closed 2015 at N919.6m which was almost double digit percentage rise on 2014:s group N856m. The other major stream was income from investment in treasury bills, term deposits, commercial papers, bankers acceptances and bonds and it delivered a lot more to total income. Up 20.4%, the 2015 investment income was N1623.7m compared to N1349.1m for the group in 2014. It was income from other sources outside these two that failed to deliver. It dropped by 37.5% to N32.2m as against N51.5m for the group in 2014. In the end total income was N2575.5m up 14.1% on previous year:s group N2256.7m. Not b...

UBA: NEW CEO UBA PLC will have a new group managing director from August 1, this year. He is Mr Kennedy Uzoka, now the deputy group managing director. According to a notice to the stock market signed by group company secretary, Bili A Odum esq, dated March 1, the Board of directors approved the appointment subject to formal approval by the Central Bank of Nigeria. Also appointed was a new deputy managing director, in the person of Mr Victor Osadolor. Mr Uzoka is a veteran of sorts in UBA having been posted to so many units of the group since the merger with Standard Trust Bank Ltd. As deputy managing director and UBA Africa CEO. He supervises group operations across 18 African countries and also overseas two strategic support areas viz ebanking and information technology. Prior to this  he supervised UBA business in New York and London and was at one time or the other involved in Human relations, Legal advisory services; procurement and vendor management and corporate relatio...

The controversy in Nigeria over jurisdiction between the Federal High Court and the Investment and Securities Tribunal (IST) dominated the judges workshop organised recently at Abuja but could not be resolved because it is a constitutional matter. Both legal authorities were created by law but in recent times have had conflicting positions on jurisdiction over disputes emanating from the capital market. As per the Nigerian constitution, the Federal High court has jurisdiction over such matters but the IST was set up by law in 2007 as a special tribunal to handle the same disputes. At the judges workshop organised between February 24 and 25, most papers presented touched on the controversy particularly the ones presented by Professor Konyiosola Ajayi; Dr Ngozi Chianakwalam and Justice Abdu Kafarati. The general consensus was that the conflict exists and it is not healthy for the capital market. In the keynote paper by Professor D. S Sangha of Warwick university the issue was not sp...

Companies and individuals with goods and services targetted at drivers, are in for better opportunities in today's Nigeria. Reason? More Nigerians are becoming drivers. According to statistics from the National Bureau of Statistics,  the growth in driver's license issued in the last two years has been outstanding. In 2013 a total of 395,539 such licenses were issued nationwide but come 2015 the figure had almost tripled to 1,151,906. In 2014 the growth recorded year on year was 65.1% then 2015 topped up on 2014's 653,046 by 76.4%. Of course Lagos state accounted for the highest number each year with its share standing at 298,319 in 2015. However, very many other States are catching up fast especially in 2015 leaving Lagos with shrinking percentage shares. In 2014 the states share increased to 34.4% from 2013's 31.4% then fell sharply to 25.9% in 2015. On the other hand, top catch up growth in 2015 was Gombe state's 838.1% increase from 2014's 3337 li...

The campaign for boycott of banks in Nigeria by customers today March  1 in protest against bank charges did not score a hit but it was worth the try. According to Henates quick monitoring of patronage as the day unfolded, most banks were patronised but mainly by customers who knew nothing of the campaign or who could not afford to stay away for one reason or the other. Interestingly however there were also some customers that were not in line with the campaign and would have readily gone to transaction business if they had any billed for the day. Two simple questions were sent to dozens across Lagos through sms and whatsapp. Only twelve had responded by the time of writing this. In all five were not only aware of the campaign but stayed away. Even one respondent said he was busy spreading the word. Seven of the twelve however were either not aware or had to go the bank for transaction that could not hold till March 2. The managing director of a company with turnover in bil...