Thank you Segla Segla MBB,PMP, MBA for the kind words on Tekedia Mini-MBA from Tekedia Institute. This is amazing  – and awesome. It goes to our faculty and all co-learners. Tekedia Mini-MBA is largely a community service I must note. Our mission is to co-learn, co-share and rise together. In today’s Tekedia Live with edition 3 members, a member asked a question on pricing and how to arrive at the optimal number. In my response, I brought up Bigi Cola, Lacasera and Coke to explain.

Quickly, a member wrote: “ I thought you live in the U.S. How come you know the prices of Bigi Cola, Lacasera and Coke per bottle” in Nigeria. I wrote back: “It is an honour that for all the programs in the world, you decided to join us. It is our responsibility to demonstrate that by being prepared, always”.

We will keep getting better. Thanks.

Source: LinkedIn

The Central Bank of Nigeria (CBN) said it will resume sales of forex to bureau de change (BDC) operators as Nigeria sets to lift restrictions on international flights.

The apex bank made the announcement via a circular signed by the director, Trade and Exchange Department, O.S Nnaji, which was shared with operators of BDC and the general public. The CBN said the exchange of currencies will happen on Mondays and Wednesdays.

“As part of efforts to enhance accessibility to foreign exchange particularly to travelers following the announcement of the limited resumption of international flights by the Honourable Minister of Aviation commencing with Abuja and Lagos, the CBN hereby wishes to inform the general public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from August 31, 2020.

“Consequently, purchase of foreign exchange shall be on Mondays and Wednesdays in the first instance. The BDCs are to ensure that their accounts with the banks are duly funded with the equivalent Naira proceeds on Fridays and Tuesdays accordingly.

“Meanwhile, Authorized Dealers (banks) shall continue to sell foreign currencies for travel related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents (passport, air ticket & visa),” the circular said.

It added that All Authorized Dealers and BDC Operators are hereby advised to ensure strict compliance with the provisions of extant regulations on the disbursement of foreign exchange cash to travellers as any case of infraction will be appropriately sanctioned.

As part of efforts to contain the economic strains and forex crisis emanating from COVID-19 pandemic, the Central Bank also ordered BDCs to sell dollar at N386.

“Please, be advised that the application exchange rate for the disbursement of proceeds of IMTOs for the period, Monday, August 31, to Friday, September 4, is as follows:

“IMTOs to banks N382/1USD; banks to CBN N383/USD; CBN to BDCs N384/1USD; BDCs to end users N386/$1; volume of sale for each market is USD 10,000 per BDC,” the circular added.

The central bank has been pushing monetary policies aimed at stopping Nigeria from falling into recession, and curtailing the impact of COVID-19 pandemic as the N2.3 trillion Economic Stimulus Plan appears meager to the challenges.

Nigeria’s Bureau of Statistics (NBS) reported that the GDP shrank 6.10% year-on-year in Q2 2020; setting the country up for recession if the economy records further decline. The report indicated a drop of 8.22% points compared to Q1 2020 which was 1.87% and Q2 2019, which was (2.12%).

The decline is as a result of the ravages of COVID-19 pandemic on the oil market, which is Nigeria’s GDP highest earner. NBS reported that the oil sector recorded 6.63% contraction, year-on-year in Q2 2020, a decrease of -13.80% points relative to the rate recorded in the corresponding quarter of 2019.

Consequently, the oil sector contributed a meager 8.93% to the total GDP of in the second quarter of 2020, five percent lower than what was recorded in same quarter the previous year.

The non-oil sector also shrank -6.05% in real terms in the reference period, marking its first decline in real non-oil GDP growth since Q3 2017. The report said the non-oil sector grew at -70.70% points lower compared to the rate recorded during the same quarter of 2019, and -7.60% points compared to the first quarter of 2020.

The rate of the decline indicates that Nigeria is on the verge of plunging into its worst recession in 4 decades. The International Monetary Fund (IMF) said in its June outlook that the Nigerian economy would witness a deeper contraction of 5.4%, two percent higher than the 3.4% it projected in April.

Increasing rate of job loss smiting the Nigerian labor market indicates the impact of the shrinking economy. The NBS labor statistics reported that unemployment rose 27.1% at the end of Q2 2020. The decline in unemployment was enhanced by the exodus of some companies from Nigeria. Naira devaluation exposed multinational companies operating in Nigeria to harsh realities, forcing them to leave Nigeria for countries with stable foreign exchange.

The IMF has urged Nigeria to maintain a unified forex to make its business environment attractive. In July, the apex bank devalued naira to N380/$1, in a bid to curtail the multiple exchange rates that have characterized Nigeria’s money market. But the BDCs were still selling at rates around N470/$1 due to dollar scarcity.

From Monday, innovators and project champions from WeForGood International, will begin a 3 month management journey with Tekedia Institute. The organization is led by Temitayo Ade-Peters. WeForGood brings people and organisations together to act on causes they care about, in fulfillment of the Sustainable Development Goals, and for the overall wellbeing of communities.

At the Tekedia Institute, we are honoured to be serving organizations like WFG to deepen manpower capacity. Last year, WFG coached and provided grants of over $250,000 to startups and organizations in Africa.  This year, to improve efficiency, Tekedia Institute would be working with it to train the innovators. From the pool, it would now make its grants.

IHS Nigeria is providing 50% tuition while Shecluded provides loans to women participants who need support for the N50,000 or $140 training. Registration for the first batch closes on August 31, 2020; class begins the same day. For batch 2, registration closes on September 11, 2020 while classes begin on September 14, 2020. Any question on payment, registration, etc, email training@weforgood.org. 

Registered WFG innovators, your Board is here.

WeForGood Digital Board

Yes, you would not have expected MultiChoice (DStv, GOtv) to be considering increasing the prices of its products and services with the regulatory drumbeats in Nigeria. But if you look deep enough, MultiChoice may not have an option. Its products depend on foreign raw materials and when your Naira falls, it has to ask you to send more to cover the fall. Provided MultiChoice has not changed its structure into a charity, the social and regulatory activism will not change that redesign. All foreign and imported products have since increased prices  – why not, DStv? (See the MultiChoice letter and the new prices below)

This is the deal: the agitation and social media activism will not change market dynamics. MultiChoice is not sourcing products in Nigeria and reselling. If that remains so, prices will keep rising. If you think otherwise, check the prices of toothpicks and near-airport-pizzas, they have risen because most are also imported! Take it Nigeria, devaluation has happened twice in the last four months; MultiChoice has increased prices twice in the last four months. It sounds similar? 

Giving reasons for its upward review of pricing, the company cited factors such inflation, operations, the mandatory increase in Value Added Tax, VAT and devaluation of Naira by the government (see attachment).

DAILY POST observed that from Tuesday, September 1, 2020, MultiChoice will effect its new price regime which is as follows: DSTV Premium will move from N16, 200 to N18, 400, Compact Plus from N10, 925 to N12, 400, Compact from 6,975 to 7,900 and for users of GOtv Max, they will have to pay the sum N3,600 from 3,280.

Good People, the only way is to attend that football bidding war in Europe and win. Then, you can come to Lagos and distribute it at Umuahia rate. Until then, everyone is at Johannesburg rate.