HENATES

Africa's largest Cement manufacturer. Dangote Cement PLC has been forced by imported and local cost push inflation to increase ex factory price by N600 and re-strategise on its energy supply. According to a release from management, Nigeria remains the African groups main market and sales volume continued to be robust in July and August. There has been some major challenges, though. These are disruption in gas supply in recent months; the continued depreciation of the Naira against the dollar and higher price for present alternatives to gas for powering its factories. The gas supply drop led Dangote Cement to resort to use of coal and LDFO which cost three times more. In addition, the drop in the value of the Naira also shot up cost of imported coal and other essentials Unable to absorb these pressures, Dangote  cement decided to renege on its promise given last September not to increase prices. Thus the N600 added brought the price to slightly higher than September levels. Ho...

Nine months into the year, it is now obvious that steel drum manufacturer, Greif Nigeria PLC will end financial year 2016 in the loss league. According to figures released for the period to July released this week, this was principally because it had to absorb 147.9% growth in foreign exchange related loss to N76.1m. In all, Greif ended the nine months with N16.5m loss before tax and this certainly was just a fraction of real increase of N36m in exchange loss. Agreed, there were pressures from other sources. For example. Cost of sale at N577.1m was up 20.9% thus ahead of 18.5% growth in core revenue to N693m it generated. To worsen matters, selling and marketing expenses rose by 30.2% to N3.58m and finance income decreased by 17.2% to N2.94m. The point though was that controlled administration costs would have helped to absorb these if the exchange loss had not more than doubled. In the end, because of the loss recorded and 155.2% leap in prepayments to N102.6m, Greif Niger...

That Nigeria is now in recession is no more open to debate. All the signs have manifested. Hence this is not the time to tactfully withhold monthly reports like composite price index in an attempt to blindfold any one on galloping inflation or reduce outcry against current political leaders. The time is more than ripe to stop calling on citizens and investors to bear the pains and also stay positive. Instead, the time now demands clear cut incentives to check the downswing by offering all and sundry what is in it for them if they act positive and remain Nigeria friendly. After all, no businessman is a philanthropist first before becoming a businessman. The reverse is the case, you make profit first, before you decide to spread the surplus around. Today's  task of getting Nigeria out of the woods comes in two twin packages: Get more foreign exchange to flow in while applying available forex more efficiently and Get the local economy to be more productive, efficient and innov...

Surely, in these times in Nigeria, making profit is akin to fighting a war but then, for Union Diagnostic & Clinical Services PLC, wars are won by winning one battle at a time. In the first half to June, Union Diagnostic's core revenue grew by only 5.07 % to N655m but it won a great battle when accompanying direct cost dropped by 1.73% to N288.9m thus topping gross profit by 11.2% to N366m. Then more square ups came from 48.4% increase in rent to N18.4m; 41.8% rise in transportation cost to N13.5m; 31.1% increase in repairs and maintenance bill to N19.4m and 19.3% spring in other operating expenses to N63.1m. All threatening to tear the 11% increase in gross profit apart. Well, it did not happen because 0.11% drop in staff expenses to N88.5m; 32.2% cut in professional fees  to N2.44m; 4.1% decrease in communication expenses to N2.57m and N2.27m bonus from finance income, absorbed the blows. Hence, even as finance charges increased by 10.5% to N3.36m, Union Diagnostic cr...

If there any time in Nigerian finance, it pays to be relatively small, the time is now and Unity Bank PLC is one of the banks that prove this in turbulent 2016. For Unity Bank the knocks of different policy somersault  since 2015 has been taking its pound of flesh but being rather small comparatively, one good news was enough to keep hope alive. So,  in the first half to June, gross earnings decreased significantly and many costs grudgingly followed from a distance but Unity Bank PLC still ended with profit, not loss. Gross earnings for the period had dropped by 35.1% to N21775.8m as interest income dived by 42.3% to N13477.4m; and fee and commission slumped by 82.7% to N804.2m. Stoking the fire some more was 32.7% drop in interest expense, well behind interest income decrease; 95.5% dive in paper income due to forex revaluation and less than proportionate decreases of 2.18% to N6942.2m and 24.4% to N5169.6m in personnel and other operating costs respectively. This recipe for...

C & I Leasing PLC is apparently making slow progress in the current year due to painful pressures. According to the half year results to June, C & I Leasing recorded impressive growths in most of its income streams but with accompanying cost growth in step or ahead. Lease income grew by 96.2% to N5493.1m but associated cost rose by 105.9% to N1305.8m and outsourcing income rose by 105.8% to N2713m but unfortunately, its related expenses closed 108.9% higher at N2476.4m. However, two exceptions to this trend were recorded although from streams that contribute far less to gross earnings. Tracking income rose by 89.1% to N76.2m tracked by only 20% rise in expenses to N51.7m and vehicle sales income increased by 84.2% to N98.2m accompanied by 38.7% rise in expenses to N113m thus reducing loss recorded in vehicle stream. The real game changer for C & I Leasing within the period was 176.4% growth in other operating income to N314.3m supported by 6.69% lift in interest i...

The one thing that was very cute and helpful for Cutix PLC in the financial year to April 2016 was its success in reducing administration expenses by 9.07% to N255.8m. According to the audited figures for the year, but for this it would have been impossible for Cutix to end the year with profit before tax 37.6% up at N278.5m. This had led to much improved 9.72% profit margin compared to 8.48% in 2015 year. Cutix PLC total income growth had settled at 20.1% to N2861.5m despite 20.2% rise in core revenue to N2835.9m. The slight scale down of income growth resulted from only 5.79% increase in income from other sources to N25.6m particularly as Cutix reaped 67.8% lift in forex related gains to N6.21m. The pressures absorbed by the administration cost decrease were 22.3% increase in cost of sale to N2102.5m; 29.4% rise in distribution expenses to N88.1m and 22.6% increase in finance cost to N137m especially as overdraft interest expense closed 86.8% up at N66.3m. In the new year...

For the Nigerian bank that truly has subsidiaries all over Africa, United Bank of Africa -UBA PLC, it was a clear case  of squeezing through for safe landing in the first half to June. And as if to celebrate this, the directors have declared interim dividend of 20k per share payable by September 19 this year. According to the interim results to June released this week, UBA gross earnings eased marginally by 0.1% to N165580m under pressure from 27.4% and 6.57% decrease in other operating income and interest income to N1599m and N107418m respectively. The squeezing through occurred as a higher 14.4% decrease in interest expense to N43286m was recorded in addition to 21.7% increase in fee and commission to N36936m and 7.79% rise in net trading income to N19637m. Like for most banks so far, boost in fee and commission came mainly from e business income while real incomes associated with foreign exchange trading tumbled. UBA increased its impairment provision within the period by ...

Academy Press PLC looks set to develop good muscles this financial year like an athlete finally able to withstand press up pains. According to half year figures to June, the times were indeed trying but mostly under good control. By June core income had gone down by 2.3% to N585.1m but 68.9% growth in income from other sources to N6.4m helped reduce total income drop to 1.86% at N591.5m. Then the cost of generating the core revenue decreased even faster by 9.3% to N341.5m leaving room for 9.63% increase in gross profit to N243.5m in spite of the revenue drop. However, administration cost 3.83% increase to N178.1m threatened to rubbish this good foundation but 38.9% decrease in distribution cost to N7.52m and in finance charges by 4.38% to N50.2m helped to arrest the situation. In the end. In spite of the income drop, Academy Press PLC reported N14.2m profit before tax within the period compared to N23.7m loss previously. ACADEMY PRESS PLC: Nm                      Half yea...

At last, the Securities and Exchange Commission (SEC) has proposed a way out of the capital market's always mounting unclaimed dividends. According to the proposal dated August 23 and posted on its website, SEC is proposing that any unclaimed dividend that remains unclaimed for 12 years be transferred to the Nigerian Capital Market Development Fund. Specifically, the proposed rule directs all companies and registrars "in custody of unpaid dividend which remain unclaimed by shareholders 12 years after date of declaration or subsequently attain the 12 years threshold shall upon coming into effect of this rule, transfer such monies unto the Nigerian Capital Market Development Fund". It is also proposed that " all companies and registrars shall, not less than 30 days after the end of every calendar year, forward to the Commission a report of unclaimed dividends in their custody" and specify degree of compliance with the proposed rule. Finally, the new rule i...

In 2016 financial year, May & Baker Nigeria PLC is finding it hard to bake the cake to share to shareholders. According to figures for the half year to June published recently, the main problem is that major cost components were under pressure while core income growth was single digit. Within the half year, core revenue increased by 8.63% to N3702.9m while total income closed 12.4% up at N3723.5m driven by far more hefty higher rise in income from other sources. Investment income had risen by 26.9% to N11.1m while income from other sources closed 48.6% up at N9.51m. Even though drop in distribution cost to N510.8m and in finance cost to N255.8m helped matters further,  the profit for the period came to only N44.2m, down 69% on previous first half. This was because 15.7% increase in cost of sale to N2603.5m and 17.5% rise in administration expenses to N309.5m, made a mess of all gains. This meant that by half year to June, at 1.19%, May & Bakers profit margin was too...

Declaring a state of emergency now on the Nigerian economy could theoretically be a good way to arrest the current cascade down depression but give President Buhari emergency powers? Capital NO. It will be a monumental disaster and in fact, lead directly into abyss. One, because the Man himself has rightly admitted over and over that he knows nothing about economics; in fact if one may add, he knows nothing about team work and team spirit to achieve set goals. Naturally, that is because he remains a soldier, an officer for that matter used to all obeying the last command. "Soldier, that's an order" and all else goes through the window. For another, his antecedents as military dictator way back in 1984 and actions and pronouncements since coming back to the saddle do not guarantee he is a man who could be trusted with emergency powers of any kind. President Buhari real qualification for the job he is now doing is self righteousness. He was also that self righteou...

Let me confess one thing right away: At 63 am one of those who did not know that the year 1991 was that significant to the world until this years 25th anniversary of the World Wide Web aka internet. I thought for personal reasons no year could be more significant than 1996, 1953, 1990 and 1978. Now I know that there is one year that deserves mention too: 1991. I was reborn spiritually in 1996; born unto this world in 1953; lost and gained a lot spiritually in 1990 and lost my mother in 1978 in a manner that made me ask God to his face: What have I done to deserve this? I was then just 25. Now, am discovering www a new as it turned 25 today. Sure my two daughters can bear witness that I sensed the potentials of the internet, got them their very first email addresses and funded their romance with the internet from an early age but i never saw my self as part of the internet generation. No, I was old school, not too sure of the whole thing at all. And you know why? Because I was...

Austin Laz PLC though still dreaming of the year it will record N500m revenue, at least now hopes to quit the loss league if not this year, then the next, all things being equal. According to the figures for the half year to June released recently, turnover increased almost fourfold to N130m from N37.3m for 2015 first half. And more importantly, no cost head came close to the same growth rate. Cost of sale more than doubled to N149.9m just like distribution cost which closed 100.6% higher at N6.38m. Also administration cost increased by 47.7% to N14.1m thus helping distribution cost to drive Austin Laz into higher operating loss of N40.4m compared to N37m by the same time in 2015. Cost of sale growth was engendered mainly by strong increase in factory cost; and distribution expenses was driven as hard by most components especially discounts, advertising, PR and entertainment. However, even though all these recorded increases at rate lower than revenue growth, the real game ch...

ROUNDTABLE ON TODAY'S NIGERIA. The Nigerian stock exchange in conjunction with Blomberg will on Wednesday August 31 organise a roundtable for chief executive officers to exchange ideas on how to navigate today's Nigeria Taking off at the stock exchange house from 9am, the jaw jaw is expected to last till about 12.30 pm. There will be a panel session with participants like Segun Ogunsanya of Airtel Nigeria, Bolaji Balogun of Chapel Hill Denham, Mark Bohlund of Bloomberg, and Mr Eke the CEO of FBN holdings apart from NSE boss, Mr Onyema. The focus will be financing capital projects in trying times, strengthening foreign investment and real economic growth. FIRST BANK's NEW CHIEF FINANCE OFFICER. First Bank of Nigeria has appointed Mr Patrick Iyanomo as the new chief finance officer to replace Dr Kazeem Adeduntan who was elevated to CEO position recently. Iyanomo joins First Bank from the glass doors of FCMB where he was also the CFO with responsibility for portf...

No one really likes to have fair weather friends. That is friends who one minute are the best you could ever imagine then suddenly when adverse situation occurs, they pack their bags and leave you in the cold. For most human beings only one other desertion could hurt just that much: parents abandoning one in early age. Now Nigeria and Nigerians must be hurting from companies and investors who have since packed their bags or are now preparing to jump ship in less than a year of truly almost hopeless situation. Some left simply by counting their losses and shifting their funds somewhere else while for some it meant letting go of control and selling controlling interests to the highest bidder. A most recent one Henates read about is the reported decision of the major foreign investors in historic Federal Palace Hotel to go back to South Africa. They reportedly gave reasons why it was time to show Nigeria backside and that is what makes their case most interesting. Sun Internat...

The use of e-payment channels in Nigeria seems to be growing but not in step with the value involved According to relevant statistics for up to July released by the National Bureau of Statistics, volume did increase significantly especially for ATM, POS and NIP but not with corresponding growth in value involved. According to the figures, when July 2015 and 2016 figures are compared, there was 89.1% increase in POS volume but the accompanying increase in value was only 62.9%. As for NIP (NIBSS Instant Payment), there was also significant 77.7% increase in volume but only 24.5% increase in value was recorded. In the case of ATM, both growths were closer with volume rising by 37.6% while 21.2% was reported in value involved. In the case of payment through the web, volume increased by 59.9% but value growth came to 42.2%. However, payment through mobile device, Nigeria Electronic Fund Transfer and through e bills pay recorded significant exceptions. In the case of mobile, there was...

Avon Crown Caps Group Nigeria PLC seems headed for yet another year of loss because it remains under pressure. According to figures for the first quarter to June 2016 released last week, not much has changed since the N153.8m loss reported in the year to March. Sure there was 19.6% increase in the core income for the quarter to N4078m, but this was neutralised by 32.4% rise in cost of sale to N3686.6m. Sure too 27.6% decrease in financial charges to N234.4m and more manageable 5.6% increase in overhead to N337.7m was recorded, a further 17.3% drop in income from other sources to N3.72m did not help matters. Hence, the group ended the quarter with N177.1m loss compared to only N12.5m loss by the same time previously. Besides, this time around, it looks like subsidiaries are in no position to help cushion the downswing in main company's fortunes. By the first quarter of last financial year, the company had reported N41m loss which was reduced by subsidiary input for only ...

Access Bank PLC apparently had a lucky break in recent months of depreciation in the value of the Naira: Its exposure was limited and so, what should have been blows turned to be pinpricks. According to audited half year figures released this week, Access Bank bore additional brunt like most banks but looks set to continue smiling. Of course, its unrealised loss from forex revaluation increased by 84.8% to N15,218.8m; its interest bill on interest bearing debts more than tripled to N2610.5m all because of the fate of the Naira, but all was well. Well, because only 38% of its interest bearing debts was in foreign currency and although debt securities issued was 100% eurobond, the bulk was from a subsidiary abroad. It also got a hit from net forex gain which in fact dropped to N11108.1m loss compared to N7929.8m gain previously. Other blows unrelated to the Naira directly were 15.6% decrease in net gains on investment securities to N33089.2m and 12.1% increase in personnel cost...

Ordinarily, PZ Cussons Nigeria would prefer to keep something for the next season but this year to May 2016, it more than emptied the pot to make shareholders happy. According to a notice earlier released this week, the board of directors is recommending 50k per share dividend come annual general meeting billed for October 6 at Abuja. This figure is 3k per share higher than the 47k earnings per share for the year in the audited results from which under normal circumstances, dividend should be declared with some left as retained earnings. But of course, the times are clearly different now because the Naira, which is PZ Cussons Nigeria's reporting currency is down yet contribution to international group profit must be considered. So the top up to fill the 3k gap will come from gentle and yes, legitimate dipping of cake sharing knife into retained earnings of previous years. Yet, the truth also must be faced: PZ Cussons Nigeria, from the figures, had a rough year. As usual...

Guaranty Trust Bank PLC hung on to paper profit substantially to cruise through its first half to June with 35.9% rise in profit before tax to N91381.8m. According to the unaudited figures released this week, GTB did make good and effective efforts to stay in control in spite of the times but the real hope raiser was great leap in group foreign exchange asset value in Naira terms given the depreciation of the Naira. Within the half year, GTB provided for N61253.1m as legitimate accounting gain from foreign exchange revaluation as against far less N6558.1m in 2015 first half when the Naira was far more stable than now. In other words GTB's significant 44.8% increase in profit within the period was 67% dependent on the fate of the Naira and little to do with rewards for the banks operations within the period. Aside from this, the only other aspect of operations that showed strength that could be built upon to ride the times better is e-business from which GTB reaped N17263.6m...

From the figures to June this year, Union Bank PLC ended the first half on a good note but one wonders if enough provision for burden of its foreign loans was made. According to the unaudited results for the period, almost everything went well for Union Bank with the exception of net impairment provision 195.3% increase to N8780m and income from other sources drop by 8.81% to N5132m. Gross earnings increased by 8.45% to N60069m propelled more by 66% rise in fee and commission to N6262m ,14% increase in net trading income to N3289m and 162.2% increase in profit to N318m from subsidiary sale from N511m loss previously. Then firm grip over costs led to only 1.46% increase in personnel cost to N14920m and 7.15% decrease in other operating expenses to N11718m. Union bank says that interest income rose by 3.87% to N44344m and interest expense dropped by 18.4% to N13397m. Heart warming as this may be, there is need for closer look at debt service cost since not less than 81.2% of it...

SKYE BANK PLC: NEW GENERAL COUNSEL. Skye Bank PLC has announced the appointment of a new general counsel and company secretary from August 8, 2016. He is Mr Babatunde Osibodu, hitherto a partner in Osibodu & Balogun firm of legal practitioners. According to a notice to the Nigerian stock exchange, Mr Osibodu joins Skye Bank armed with over 30 years experience as a practicing lawyer both in Nigeria and the United Kingdom. At different times he was a partner in the following London firms: Miles & partners, Addie & co and Regency solicitors. According to the notice his experience was mainly in project finance, debt recovery, property acquisition and general corporate finance. He is now both the legal adviser and company secretary of Skye Bank, although like for most senior banking appointments, this was subject to the approval of Central Bank of Nigeria. (CBN). PZ CUSSONS PLC DECLARES DIVIDEND. The board of directors of PZ Cussons PLC has recommended 50k per sh...

Between July 18 and 21 this year, 528 new scholars were inducted for the 2016/2017 Petroleum Technology Development Fund (PTDF) for scholarship to under take Masters and Doctorate degree studies abroad and within Nigeria. According to the official story on the PTDF website, these were men and women chosen after application had been thrown open and shortlisted applicants made to face expert interview panel. For example, goes the official story, 1305 people applied for the outside Nigeria PhD programme,(OSS) out of which 706 were shortlisted for interview and screening while 196 applied to undergo theirs locally (LSS) and 133 were shortlisted. In the end, the 528 successful applicants inducted in July were made up of 273 scholars bound outside Nigeria to study for masters and PhD while 255 will undergo theirs locally. During the induction, the scholars were assured by Central Bank representative that providing the foreign exchange components of their study will be no problem be...

Zenith Bank PLC has apparently taken some punches from the tough times but it was still standing by half year to June 2016. According to unaudited results released recently, the issue was not just that gross earnings eased by 6.2% to N214812m but that it held on and ended with a slight drop in margin to 29.5% from 31.5% previously. Core business offered good succour because interest income grew by 2.94% to N181408m while interest expense decreased by 14.5% to N54385m. It also helped greatly that Zenith depressed operating expenses by 6.82% to N43101m. The stress came from 97.6% increase in impairment provision to N14232m; 16.2% drop in fee and commission income to N30701m; trading activities dive into N864m loss and 15.7% drop in other income to N3567m. Share of profit from associates also dried up within the period while personnel cost rose by 9.35% to N34593m. In the end, Zenith profit before tax dropped by 12.4% to N63281m. Like for most Nigerian banks presently, the r...

Official hopes to make mining and quarrying a major non-oil plank for the Nigerian economy may not be that easy to realise after all. Reason? Mining and quarrying output in 2015 dropped by 23.6% to 40bn tonnes from about 52.4bn in 2014. According to figures released by the National Bureau of Statistics (NBS), this occurred after three consecutive years of increase from 2011 five year low of about 21.9bn tonnes. Down 21.4% in 2011, output had recovered strongly by 58.9% to N34.8bn by 2012 then by 30.6% to 45.4bn and finally by 15.3% to 52.4bn tonnes by 2014. The dive occurred more in coal output which went down by 62.5% to 144880m tonnes from 385893.7m tonnes in 2014. There was also a major 40% decrease in metal ore mining output to 22639m tonnes from 37741.8m tonnes. Meanwhile, other mining and quarrying apart from these two remain the dominant activity in the sector and indeed it recorded a far lower 23.3% decrease in output to 39.9bn from 51.9bn in 2014. In most of the ...

The Central Bank of Nigeria has reopened the registration of bank customers in the diaspora for bank verification number (BVN). According to public notice signed by Dipo Fajokun, Director, Banking and payment department, such customers can now continue to be registered up to December 31, this year. The registration process for them had been closed by June this year. The guidelines for their registration had been released in August last year with deadline then fixed for January 31, 2016. This was later extended to June because only a few successfully registered. In fact, in view of logistical challenges, a new consultant was signed on to bring the number involved to three. But, unfortunately, says the CBN, even though registration picked up at last, so many still remained unregistered by last June. "Consequently" CBN said, "to ensure that all Nigerian bank customers in diaspora are enrolled...the enrollment... (is) hereby reopened for the next five months......

The saying by the wise ones even now very much a cliché, that a bird in hand is worth two in the bush, makes sense in today's Nigeria. It looks like it did not make much sense at similarly critical times before now hence Nigeria lost manufacturers of textiles, batteries, tyres, and assemblers of vehicles amongst others. In those gone times, the foreign investors or better called partners who decided to shift base to neighbouring countries or leave Africa altogether did because it was no profitable. Indeed, for many it had become more profitable to satisfy the huge Nigerian market through products and services domiciled in other countries. Now though, the situation is a bit different: Nigeria does not even have enough foreign exchange to sustain national appetite for foreign goods and so, stimulating demand at home should make local manufacturers not to even contemplate leaving Nigeria. Well, this can only be right if such manufacturers do not import foreign inputs and, mo...

If the first quarter to June this year, then International Breweries PLC is heading for a tough year ending March 2017. Unfortunately, this will be more because it seems to be working more for its creditors. According to the first quarter figures released recently, International Breweries seems to be in good control of all aspects of its business except cost of financing the business. Core turnover increased by 31.6% to N6973.8m and cost of sale grew from a comfortable distance by 27.2% to N3463.9m. More encouraging was the fact overhead behaved well with marketing cost rising by 9.54% to N396m and cost of administration increasing by only 6.32% to N1333m. Even income from non core operations contributed its bit by chipping in N1.72m compared to (17.1m) loss at the same time last year. But financial activities turned out to be the show stopper. Aside from 99.9% drop in finance income to N0.12m, finance charges took a leap to N2888.7m from N362.8m. Thus, International brew...

For operators who desire to be involved in international money transfer business in author is Nigeria, there is room for registration in spite of recent alert on unregistered ones by the Central Bank. The bank had warned banks and the public to beware of unregistered international money transfer operators because of the risk involved and potential to do harm to even the Nigerian economy. This affected some operators who had hitherto transferred money through banks to recipients in Nigeria without being duly licensed by the Central Bank of Nigeria (CBN). In a press release this week the CBN assured that operators are still free to apply for license to engage in international money transfer business in Nigeria. All they need to do is follow guidelines issued since 2014 and available on its website. Among the conditions stated in the guidelines are that there must formal board resolution approving it, and applications must be accompanied with memorandum and articles of association...

The Central Bank of Nigeria has asked for bids for the supply of HP laptops and Dell desktop to the bank. In two separate notices posted on its website, the contracts to be issued will be for the supply of 180 Dell desktops and HP laptops of two variations: 140 units of HP 640 and 10 units of HP zbook. Detailed specifications on the laptops and desktops are clearly stated in the two different notices. As usual, to qualify there must be evidence of registration in Nigeria, copy of memorandum and articles of association, evidence of three year tax payment, and evidence of compliance with National Pension Commission and Industrial Training Fund requirements. Also there must be evidence of registration with Financial Reporting Council, authorisation letter from Dell Nigeria and registration of National data base. There are other conditions which are optional but could boost chances. These are corporate profile that includes CV and contact particulars of key personnel, 3-year audi...

e-TRANZACT PLC: NEW DIRECTORS. e-TRANZACT PLC has appointed two new non-executive directors to its board. They are Messrs Adeyinka Olatokunbo Asekun and Afolabi Oyedeji Oladele. Mr Asekun was appointed since April 28, while Mr Oladele joined on July 21, 2016. Mr Asekun holds Bsc in Business administration from University of Wisconsin and an MBA from California state university. He brings on board years of experience as a top Nigerian retail banker with stints at International Merchant bank, UBA, and Oceanic bank. He was also CEO of Hebron Ltd, a consulting firm. He is currently the chairman of the board of directors of Wema bank PLC. Mr Oladele, on the other hand, holds Bsc Chemical Engineering from Obafemi Awolowo University, Ile-ife, and is a fellow of the Nigerian society of chemical engineers. He is certified in petroleum economics by French Petroleum Institute and in applied international management by Sigtuna-Sweden. His working experience was gathered from decade...

The news this week that Nigeria is now once again trailing South Africa on the scale of Africa's biggest economies ought not to come as surprise. Yet it did and Nigerians were not amused with some pointing accusing fingers at President Buhari while the man himself was lamenting that suddenly Nigeria has become a poor nation Well, so what? It is wrong for anybody to gleefully expand his ego or painfully moan because of gross domestic product comparison across borders. Even the United States of America can not robustly do that to China now because to compare international GDPs who must face the limitations of currency valuation. All economic values, for convenience are stated in one currency or the other, and to compare values within one country to another requires you use existing exchange rate. Yet, the truth is that if the Naira exchanges for N300 to the dollar, for example, that is not to say that you will actually spend the equivalent of N300 to buy a bag of salt in Ni...

The Nigerian stock exchange (NSE) has decided to stop charging of trading fees on all fixed income securities (bonds) quoted on the market. According to a notice on its website dated August 11, this is part of a broader decision to revise charges on the same type of securities  with effect from August 17, 2016. Also as part of the revision, there will be no more fixed brokerage commissions. This means that  stockbrokers and their customers are now to negotiate same within a maximum of 1%. Listing fees have also been adjusted from fixed 0.15% hitherto for all bond types, to slightly different rates for three bond types. Corporate bonds exclusively listed on the exchange with existing equity listing will now attract 0.01% as listing fees. On the other hand, corporate bonds with dual listing and existing equity will attract 0.0375% just like for other corporate bonds without equity listing. In the case of state bonds the new listing fees will be at 0.05%. However, from Augus...

In the financial year 2015, Skye Bank PLC literarily jumped from the sky into heavy loss. According to audited figures released not too long ago, Skye Bank ended with N37646m loss , that is multiples of the N19450m it recorded in 2014 as profit. A number of factors were responsible. For one, interest expense leapt by 72.7% to N76993m even as interest income increased by only 18.6% to N127908m. For another, there was 103.8% increase in provision for depreciation to N8946m even though fixed assets value only dropped marginally to N62973m. Also, impairment for loan loss rose by 46% to N27536m and for possible loss on other assets to N7145m from N1959m. Then, as part of the pressure package, staff cost almost doubled, rising by 94.3% to N38229m from N19676m. If not, fee and commission had risen by 13.1% to N16862m while its attendant cost went down 4.41% and fair growth had been recorded in net trading ( 45.4% to N13457m) and other operational income by 19.5% to N5651m....

The Nigerian Export Promotion Council (NEPC) has come out with how you can help Nigerian reserves hit $150bn within 10 years. It is simpler than you may think: Join in the export of 11 local products the NEPC says can be exported to 22 priority markets outside Nigeria. According to the NEPC executive director/ chief executive officer, Mr Segun Awolowo, these products are palm oil, cashew, cocoa, soybeans, rubber and rice. Others are petrochemicals, leather, ginger, cotton and Shea butter. Aside from these products, also exportable are Information technology skills and garments. "Our objective" says Awolowo, "is to increase the reserves of the country to $150bn in the next 10 years" As part of efforts towards this end, different collaborative arrangements have been put in place to formalise export of agricultural commodities to neighbouring countries like Niger, and develop export capacity for garments apart export incentives already in place. Besides...

The Securities and Exchange Commission (SEC) of Nigeria has commended the Central Bank of Nigeria (CBN) over the recent decision to allow bank customers pay cheques into their savings account. In a notice on its website, SEC wrote: "The commission wishes to commend the CBN for this laudable step and appreciate the great support the CBN continues to show for capital market initiatives" According to SEC those most likely to benefit from the move were retail investors who have been having problem cashing their dividend cheques and warrants over time. This, it said, added to the problem of unclaimed dividends that now runs into billions of Naira. It was for this reason SEC has been engaging other national institutions to find ways to resolve the matter. It was this kind of engagement that gave birth to today's e-Dividend Mandate Management portal (eDMMS) for online enrollment for direct credit of dividends to investors approved accounts. This, says SEC, was sequel...

Cutix PLC breasted the year to April 2016 better than it ended 2015 year but thanks to controllable costs. According to the audited figures released recently, the one area Cutix scored very highly within the period was administration expenses which it depressed by 2.1% to N255.8m. It scored fairly well too in growing gross profit as 24.5% increase in core revenue to N2835.9m was accompanied by 22.3% rise in cost of sale to N2102.5m. Otherwise, management grip slipped as distribution cost rose by 29.4% to N88.1m; and  5.79% increase in income from other sources to N25.6m dragged total income growth down to 20.1% at N2861.5m. Then finance charges increased by 22.6% to N137m but good for Cutix, the gross profit rise and distribution cost drop was enough to absorb all these pressures. Hence, Cutix closed the year with 37.6% increase in profit before tax to N278.1m leading to 9.72% profit margin compared to 8.48% previously. It helped its liquidity position with working capital ...

Dangote Flour Mills PLC is bouncing back from the loss league after accumulating losses for quite a while. Incidentally, the recovery is coming after name change back to its original name. According to figures for nine months to June released recently, Dangote Flour mills recorded 50.6% increase in core revenue to N40849.2m while direct cost of generating this grew by only 17.5% to N35820.5m. This set the stage for leap in gross profit to N14028.7m thus laying a good foundation for good overall harvest within the period. Yet, the goodies had in fact just begun flowing. As a follow up, interest income rose by multiples to N228.8m and income from other sources rose by 154.5% to N68.2m. It turned out too that effective grip on cost of sale was not an isolated case. Other cost units in fact went down. Financial charges decreased by 10% to N2294.7m while distribution and general administration cost less by 8.08% at N5632.4m. Most of the goodies gathered .momentum in the third qu...

NEW DIRECTORS AT AXA MANSARD INSURANCE. Nigerian quoted company, AXA Mansard Insurance PLC has announced the appointment of two new directors to its board as non executive directors. They are Messrs Ohis Ohiwerei and Madrid based Federic Coppin. Mr Ohiwerei brings to bear over 23 years experience mostly in top level banking in Nigeria. He started out in 1992 working at Guarantee Trust Bank,(GTB) until 1998 when he joined Ecobank as country treasurer for Nigeria. By 2000, he moved over to Diamond bank as chief financial officer then executive director, corporate banking before retiring in 2005. On October 2011, he was back again to the industry as GTB's executive director commercial banking, Lagos division and public sector. He retired from GTB in 2015. Ohiwerei holds a bachelor's degree in engineering and an MBA from the university of Benin. Mr Coppin is currently head, P&C commercial lines of the international platform within AXA emerging markets region and...

A couple of years ago, Henates was in a lady friend's car when she bought roasted corn under the Maryland bridge in Lagos at very outrageous price. What registered then was how choice and satisfaction are personal yet they make up the two bedrocks on which the science of economics rests. Accounting rests on double entry, history rests on reliable records, law rests on assumed existence of Justice, and economics makes sense because it is assumed that human beings make rational choice in an attempt to get satisfaction. One was reminded of this on Sunday as a radio station quoted President Buhari spokesman, Garba Shehu as saying that the now very controversial concession exchange rate for pilgrims was approved as far back as February, this year. And he now wondered what mischief the Central Bank was up to by releasing the circular on it now? Besides, he was reported as saying, the approval was for N199 to the dollar then the ruling rate. After that the questions started rain...