HENATES

Prestige Assurance PLC seems destined to navigate its way to more profit this financial year in spite of mines in today's terrain. According to half year results released recently, Prestige Assurance had N282.3m profit before tax in its corner compared to only N81.8m profit at the same time last year. Perhaps even more relevant was the fact that credit goes to almost superlative N215.9m profit recorded in the second quarter to June alone, as against the N23.2m loss on the same quarter previously. The mines Prestige Assurance had to take in its stride during the first half include 5.7% rise in reinsurance to N804.9m at a time earned premium grew by only 0.2% to N1316.2m; 5.95% decrease in commission to N197.7m;92% dry up of income from other operations to N12.9m and 11.7% drop in investment income to N217.6m. However, so many factors helped the company through it all. These were 81.8% dive in claims to N100.5m; 68.7% decrease in acquisition expenses to N60.4m and 64.1% down ...

In spite of all the promises and all the money spent all these years, electricity generation in Nigeria by June 30, was still 41.8% short of peak as since January, 2015. According to figures released by the National Bureau of Statistics (NBS) this week for electricity generation daily since 2015, the national peak since then was 4557.17MW clocked by February 24, this year. However, by June 30, only 2650.36 MW was generated. This fell short of the period peak by 41.8%. Indeed, it has been continuous drop of sorts since the February 24 peak and it hit below 4000MW daily since March 5; below 3000MW since May 6 and stayed below 2000MW daily from June 16 with the exception of June 27, 29 and 30. The June 30 figure was a slight 0.89% improvement on June 29's 2626.87MW while on June 27, 2051.54MW was generated. Happily though, power generation has not hit the bottom again since it fell to just 49.19MW in May 25, 2015. That was really a low point but it was more of a cluster of l...

It is obvious that the Nigerian economy will stay in the woods for a long time to come if it is true that President Buhari and his very patriotic, anti corruption and  well focussed gang of ministers and advisers have approved sale of foreign exchange to pilgrims outside the inter bank market. Henates is in possession of what seems to be a circular from the Central Bank of Nigeria dated August 4, to banks to that effect. With reference number TED/FEM/EPC/GEN/01/005 purportedly from the Trade and Exchange department, the circular directs banks to sell basic travel allowance to intending pilgrims at N197 to the dollar. Besides, banks are also asked not to charge commission on the sale transactions. Each pilgrim says the circular is allowed to purchase minimum of $750 and maximum of $1000 as BTA for the trip. The dollars will be sold to banks by the CBN and the sale to pilgrims will take place  through designated banks for specifically stated pilgrims from each state as a group....

The Central Bank of Nigeria (CBN) has raised an alarm over the activities of unregistered money transfer companies under the current open market regime for foreign buying and selling. According to a press release signed by the acting Director, Corporate Communications, Mr Isaac Okorafor, the "CBN wishes to advise Nigerians to be wary of unwholesome activities of some unregistered international money transfer operators in Nigeria" According to Mr Okorafor, all genuine operators are expected to be duly licensed by the CBN in order to protect customers and the financial system. And all such licensed transfer companies are required to remit foreign exchange to their respective agent banks in Nigeria for disbursement in Naira to their respective beneficiaries while the foreign exchange proceeds are to be sold to Bureaux de Change operators for onward retailing to end users.

Nigerians and residents who have credit cards, as against debit cards, are no more to pay fixed interest rates on such cards. According to directive from the Central Bank of Nigeria to banks signed by Dapo Fatokun, Director Banking and payment systems, fixed interest on credit cards has been abolished forthwith Also, owners of  savings accounts in Nigeria do not need to beg any one to help them cash any cheques any more, they can now simply pay same into their savings accounts. According to directive to banks from the Central Bank of Nigeria (CBN), the only proviso is that such savings accounts owners must have  valid Bank Verification Number (BVN) and the amount involved must not be more that N2m per day. It will certainly make it easier for small scale operations to do business without having to open a current account that involves bank charges. However, the move may have limited immediate impact because savings accounts so far are patronised more by low income people that...

Very determined efforts of Fidson Healthcare PLC to end year 2016 better than 2015 seem to amount to few drops in an ocean of pressures so far. According to figures for the half year to June released recently, the whole thing was heralded by 35.3% decrease in core revenue to N2610.7m which even weakened further into 35.5% drop in total income to N2619.1m. It was followed by only 30.9% decrease in cost of sale to N1255.4m, 66.8% drop in other income to N8.43m and 1.11% increase in finance charges to N299.4m. Fidson Healthcare PLC fought a good battle by trying to hold down overhead resulting in 31.6% decrease to N1006.2m but like for cost of sale, it was short of the income decrease Hence by the half year, Fidson healthcare settled for N58.2m profit before tax, down 88.3% on the N476.8m recorded previously. This meant that it recorded a gain of N2.22 on each N100 income as against N11.7 by June 2015. It ended the period with a healthier liquidity position though, because wor...

In spite of the tough times in Nigeria, Nigerian Enamelware PLC rode the crest rather well within the financial year to April 2016. According to audited figures released recently, there was a minor scare when core revenue grew by only 7.17% to N2795.2m accompanied by a slightly higher rise in cost of sale by 7.9% to N2375m. However this was easily countered by good overhead control that decreased administration expenses by 16.7% to N172.3m thus leading to 23.6% rise in operating profit to N247.9m. Then combined push by interest income 86.1% growth to N115.4m and leap by gains from other sources to N11.8m, guaranteed 45% increase in profit before tax to N177m despite 39.7% increase in finance costs to N198.2m. This was of course, a long way ahead of the scary 3.17% increase in gross profit engendered by cost of sale that opted to outrun core income growth. Good for Nigerian Enamelware because it not only ended the year with higher 6.06% margin compared to 2015's 4.57% but ...