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Economy, Finance, Business News Headlines & Insights: 14th April 2020

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Oil Market Update:

‘Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day, not the 10 Million that is generally being reported. If anything near this happens, and the World gets back to business from the Covid 19 …’ President Trump

President Trump’s tweet was corroborated by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, in an interview with CNBC. Though, what’s widely reported is 9.7 million bpd, there are other agreements and voluntary commitments to cut production in the coming months until it gets to around 20 million bpd.

The twenty million bpd production cut is historic and significant because it’s closer to what commodity experts say is required to sop up excess crude flooding the market, address the destruction of demand caused by the COVID-19 pandemic and position oil prices for stability in the coming months.

The cut is a major boost for oil-producing nations like Nigeria, it will boost our revenue, provide some assurance around our foreign reserves and stability of the Naira. The cut also officially ends the price war between Saudi Arabia and Russia that flooded the world with unneeded crude and amplified the crash in oil prices.

On the flip side, since subsidy has been removed, a sustained increase in oil prices will surely lead to an increase in pump price of fuel in Nigeria…’let’s wait and see’.

Stock Market Update:

Nigeria’s equity market is off to an early gain, currently up by 0.47%, FTSE (UK) – down by 0.38%, DAX (Germany) – up by 1.05%, CAC 40 (France) – up by 0.23% and Nikkei 25 (Japan) – up by 3.13%.

Click on the link https://bit.ly/2XrvIf9 to open a stockbroking/share purchase account and trade within 24 hours.

Money Market Update:

Our money market fund is still open and yield is currently over 11.5%, reach out to our team to grow your cash. We are digital, we are working from home, we are online and we are active. You can also do deposits with us at a starting rate of 10%.

See below for more news headlines.

Headlines:

 

 

Debt service to revenue ratio rises to 48%
The revision of the 2020 revenue framework has raised the Federal Government’s debt service to revenue ratio from the initial 29 per cent to 48 per cent. The Executive last Wednesday sent a revised 2020 budget proposal to the National Assembly following a drop in crude oil prices caused by the impact of the coronavirus pandemic. Read more
Crude cuts: Nigeria to earn $10.61bn in eight months
Nigeria may earn about $10.61bn from crude oil sales between May and December this year following latest decision by members and non-members of the Organisation of Petroleum Exporting Countries to cut production. Also, the country will earn about $22.74bn from crude oil between January 2021 and April 2022 going by the volume of crude oil curtailment to be implemented by Nigeria during the 16-month period, as agreed by OPEC+. Read more
IMF excludes Nigeria from 25 nations granted debt relief
The International Monetary Fund has granted debt relief to 25 countries, mostly African nations excluding Nigeria. A statement by the Managing Director of the IMF, Kristalina Georgieva, said it would provide $500m in grant-based debt service relief to these countries. Read more
Oil rises amid hopes for quick decline in U.S. shale output
Oil prices rose more than 1% on Tuesday after the main U.S. energy forecasting agency predicted shale output in the world’s biggest crude producer would fall by the most on record in April, adding to cuts from other major producers. The Organization of the Petroleum Exporting Countries, along with Russia and other producing countries – known as OPEC+ – agreed over Easter to cut output by 9.7 million barrels per day (bpd) in May and June, equal to about 10% of global supply before the viral outbreak. Read more
Oil hovers around $31 despite OPEC+ cut deal
The international oil benchmark, Brent crude, wobbled on Monday, despite the historic oil production cut deal sealed by the Organisation of Petroleum Exporting Countries and its allies on Sunday. The OPEC, Russia and other countries agreed on Sunday to cut output by 9.7 million barrels per day in May and June, representing about 10 per cent of global supply. Read more
Dollar slips as Chinese trade data brightens mood
The dollar slipped on Tuesday and the Australian dollar led a rally in riskier currencies as China’s trade data painted a less gloomy picture of the coronavirus’ economic fallout than markets had feared. China’s March exports fell 6.6% from a year earlier, compared with a forecast for a 14% drop and imports fell by less than 1%, compared with a 9.5% drop anticipated by economists. Read more
Latest on the spread of the coronavirus around the world
More than 1.88 million people have been reported to be infected by the novel coronavirus globally and 119,168 have died, according to a Reuters tally, as of 0200 GMT on Tuesday. Read more
Trump Says Decision to Restart U.S. Economy to Be Made ‘Shortly’
President Donald Trump asserted in a tweet Monday that the decision to restart the economy was solely his and that such a decision will be made “shortly”. “It is the decision of the President, and for many good reasons” and not that of local officials, Trump tweeted. Read more

Corporate Disclosures:
Union Bank Nigeria Plc – Dividend Information for 2019 AFS
Union Bank of Nigeria Plc hereby announce as follows: A Final Dividend of N0.25k for every 50 kobo ordinary share, subject to appropriate withholding tax and approval of shareholders at the next Annual General Meeting will be paid to shareholders whose names appear in the Register of Members as at the close of business 24th April 2020. Read more


Fidelity Bank Plc – Notice of Board Meeting and Closed Period for 2020 Q1 Accounts
Fidelity bank has announced that its board of directors will hold a board meeting on Thursday, 24 2020 to consider and approve the bank’s unaudited financial statement for the first quarter of the 2020 financial year. Read more

President Buhari’s Address to Nigerians – April 13, 2020 (full text)

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Mr. President’s speech. He dropped the key message: this is not a JOKE – “This is not a joke. It is a matter of life and death. Mosques in Makkah and Madina have been closed. The Pope celebrated Mass on an empty St. Peter’s Square. The famous Notre Dame cathedral in Paris held Easter Mass with less than 10 people. India, Italy and France are in complete lockdown. Other countries are in the process of following suit. We cannot be lax.”

The full text below…

ADDRESS BY H.E. MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE EXTENSION OF COVID- 19 PANDEMIC LOCKDOWN AT THE STATE HOUSE, ABUJA

MONDAY, 13TH APRIL, 2020

  1. Fellow Nigerians

  2. In my address on Sunday, 29th March, 2020, I asked the residents of Lagos and Ogun States as well as the Federal Capital Territory to stay at home for an initial period of fourteen days starting from Monday, 30th March 2020.

  3. Many State Governments also introduced similar restrictions.

  4. As your democratically elected leaders, we made this very difficult decision knowing fully well it will severely disrupt your livelihoods and bring undue hardship to you, your loved ones and your communities.

  5. However, such sacrifices are needed to limit the spread of COVID-19 in our country. They were necessary to save lives.

  6. Our objective was, and still remains, to contain the spread of the Coronavirus and to provide space, time and resources for an aggressive and collective action.

  7. The level of compliance to the COVID-19 guidelines issued has been generally good across the country. I wish to thank you all most sincerely for the great sacrifice you are making for each other at this critical time.

  8. I will take this opportunity to recognise the massive support from our traditional rulers, the Christian Association of Nigeria (CAN) and the Nigerian Supreme Council for Islamic Affairs (NSCIA) during this pandemic.

  9. I also acknowledge the support and contributions received from public spirited individuals, the business community and our international partners and friends.

  10. I must also thank the media houses, celebrities and other public figures for the great work they are doing in sensitizing our citizens on hygienic practices, social distancing and issues associated with social gatherings.

  11. As a result of the overwhelming support and cooperation received, we were able to achieve a lot during these 14 days of initial lockdown.

  12. We implemented comprehensive public health measures that intensified our case identification, testing, isolation and contact tracing capabilities.

  13. To date, we have identified 92% of all identified contacts while doubling the number of testing laboratories in the country and raising our testing capacity to 1,500 tests per day.

  14. We also trained over 7,000 Healthcare workers on infection prevention and control while deploying NCDC teams to 19 states of the federation.

  15. Lagos and Abuja today have the capacity to admit some 1,000 patients each across several treatment centres.

  16. Many State Governments have also made provisions for isolation wards and treatment centres. We will also build similar centers near our airports and land borders.

  17. Using our resources and those provided through donations, we will adequately equip and man these centres in the coming weeks. Already, health care workers across all the treatment centers have been provided with the personal protective equipment that they need to safely carry out the care they provide.

  18. Our hope and prayers are that we do not have to use all these centres. But we will be ready for all eventualities.

  19. At this point, I must recognise the incredible work being done by our healthcare workers and volunteers across the country especially in frontline areas of Lagos and Ogun States as well as the Federal Capital Territory.

  20. You are our heroes and as a nation, we will forever remain grateful for your sacrifice during this very difficult time. More measures to motivate our health care workers are being introduced which we will announce in the coming weeks.

  21. As a nation, we are on the right track to win the fight against COVID-19.

  22. However, I remain concerned about the increase in number of confirmed cases and deaths being reported across the world and in Nigeria specifically.

23. On 30th March 2020, when we started our lockdown in conforming with medical and scientific advice, the total number of confirmed cases across the world was over 780,000.
  1. Yesterday, the number of confirmed COVID-19 cases globally was over one million, eight hundred and fifty thousand. This figure is more than double in two weeks!

  2. In the last fourteen days alone, over 70,000 people have died due to this disease.

  3. In the same period, we have seen the health system of even the most developed nations being overwhelmed by this virus.

  4. Here in Nigeria, we had 131 confirmed cases of COVID-19 in 12 States on 30th March 2020. We had two fatalities then.

  5. This morning, Nigeria had 323 confirmed cases in twenty States. Unfortunately we now have ten fatalities. Lagos State remains the center and accounts for 54% of the confirmed cases in Nigeria. When combined with the FCT, the two locations represent over 71% of the confirmed cases in Nigeria.

  6. Most of our efforts will continue to focus in these two locations.

  7. Majority of the confirmed cases in Lagos and the FCT are individuals with recent international travel history or those that came into contact with returnees from international trips.

  8. By closing our airports and land borders and putting strict conditions for seaport activities, we have reduced the impact of external factors on our country. However, the increase in the number of States with positive cases is alarming.

  9. The National Centre for Disease Control has informed me that, a large proportion of new infections are now occurring in our communities, through person-to-person contacts. So we must pay attention to the danger of close contact between person to person.

  10. At this point, I will remind all Nigerians to continue to take responsibility for the recommended measures to prevent transmission, including maintaining physical distancing, good personal hygiene and staying at home.

  11. In addition, I have signed the Quarantine Order in this regard and additional regulations to provide clarity in respect of the control measures for the COVID-19 pandemic which will be released soon.

  12. The public health response to COVID-19 is built on our ability to detect, test and admit cases as well as trace all their contacts. While I note some appreciable progress, we can achieve a lot more.

  13. Today, the cessation of movement, physical distancing measures and the prohibition of mass gatherings remain the most efficient and effective way of reducing the transmission of the virus. By sustaining these measures, combined with extensive testing and contact tracing, we can take control and limit the spread of the disease.

  14. Our approach to the virus remains in 2 steps – First, to protect the lives of our fellow Nigerians and residents living here and second, to preserve the livelihoods of workers and business owners.

  15. With this in mind and having carefully considered the briefings and Report from the Presidential Task Force and the various options offered, it has become necessary to extend the current restriction of movement in Lagos and Ogun States as well as the FCT for another 14 days effective from 11:59 pm on Monday, 13th of April, 2020. I am therefore once again asking you all to work with Government in this fight.

  16. This is not a joke. It is a matter of life and death. Mosques in Makkah and Madina have been closed. The Pope celebrated Mass on an empty St. Peter’s Square. The famous Notre Dame cathedral in Paris held Easter Mass with less than 10 people. India, Italy and France are in complete lockdown. Other countries are in the process of following suit. We cannot be lax.

  17. The previously issued guidelines on exempted services shall remain.

  18. This is a difficult decision to take, but I am convinced that this is the right decision. The evidence is clear.

  19. The repercussions of any premature end to the lockdown action are unimaginable.

  20. We must not lose the gains achieved thus far. We must not allow a rapid increase in community transmission. We must endure a little longer.

  21. I will therefore take this opportunity to urge you all to notify the relevant authorities if you or your loved ones develop any symptoms. I will also ask our health care professionals to redouble their efforts to identify all suspected cases, bring them into care and prevent transmission to others.

  22. No country can afford the full impact of a sustained restriction of movement on its economy. I am fully aware of the great difficulties experienced especially by those who earn a daily wage such as traders, day-workers, artisans and manual workers.

  23. For this group, their sustenance depends on their ability to go out. Their livelihoods depend on them mingling with others and about seeking work. But despite these realities we must not change the restrictions.

  24. In the past two weeks, we announced palliative measures such as food distribution, cash transfers and loans repayment waivers to ease the pains of our restrictive policies during this difficult time. These palliatives will be sustained.

  25. I have also directed that the current social register be expanded from 2.6 million households to 3.6 million households in the next two weeks. This means we will support an additional one million homes with our social investment programs. A technical committee is working on this and will submit a report to me by the end of this week.

  26. The Security Agencies have risen to the challenges posed by this unprecedented situation with gallantry and I commend them. I urge them to continue to maintain utmost vigilance, firmness as well as restraint in enforcing the restriction orders while not neglecting statutory security responsibilities.

  27. Fellow Nigerians, follow the instructions on social distancing. The irresponsibility of the few can lead to the death of the many. Your freedom ends where other people’s rights begin.

  28. The response of our State Governors has been particularly impressive, especially in aligning their policies and actions to those of the Federal Government.

  29. In the coming weeks, I want to assure you that the Federal Government, through the Presidential Task Force, will do whatever it takes to support you in this very difficult period. I have no doubt that, by working together and carefully following the rules, we shall get over this pandemic.

  30. I must also thank the Legislative arm of Government for all its support and donations in this very difficult period. This collaboration is critical to the short and long-term success of all the measures that we have instituted in response to the pandemic.

  31. As a result of this pandemic, the world as we know it has changed. The way we interact with each other, conduct our businesses and trade, travel, educate our children and earn our livelihoods will be different.

  32. To ensure our economy adapts to this new reality, I am directing the Ministers of Industry, Trade and Investment, Communication and Digital Economy, Science and Technology, Transportation, Aviation, Interior, Health, Works and Housing, Labour and Employment and Education to jointly develop a comprehensive policy for a “Nigerian economy functioning with COVID-19”.

  33. The Ministers will be supported by the Presidential Economic Advisory Council and Economic Sustainability Committee in executing this mandate.

  34. I am also directing the Minister of Agriculture and Rural Development, the National Security Adviser, the Vice Chairman, National Food Security Council and the Chairman, Presidential Fertiliser Initiative to work with the Presidential Task Force on COVID-19 to ensure the impact of this pandemic on our 2020 farming season is minimized.

  35. Finally, I want to thank the members of the Presidential Task Force on COVID-19 for all their hard work so far. Indeed, the patriotism shown in your work is exemplary and highly commendable.

  36. Fellow Nigerians, I have no doubt that by working together and carefully following the rules, we shall get over this pandemic and emerge stronger in the end.

  37. I thank you all for listening and may God bless the Federal Republic of Nigeria.

Thank You Botswana

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Thank you Botswana. We signed the first alumni association of a university into our Tekedia mini-MBA under the Advanced Management Program. Through this program, the alumni members will co-share and co-learn through a dedicated digital board under our facilitation. From Monday, we will begin a process of creating focused and customized contents on five core areas the alumni leadership has identified: logistics, fintech, education, healthcare and agriculture. This program will run for four months just like the generic mini-MBA

Other Programs – GMP and AMP

Besides Tekedia mini-MBA, we have GMP and AMP. I will repeat Tekedia mini-MBA to help in explaining these programs structured for organizations.

  1. Tekedia mini-MBA: Sector- and firm-agnostic open program comprising videos, flash cases, contents, pulses, challenge assignments, labs, written materials, webinars, etc delivered online. Options for grading labs available.
  2. Tekedia General Management Program (Tekedia GMP): The same as Tekedia mini-MBA but customized for a specific organization with flash cases, contents, pulses, challenge assignments, labs, etc developed around the firm and its sector. Challenge assignments and labs not graded.
  3. Tekedia Advanced Management Program (Tekedia AMP). GMP with Challenge assignments and Labs graded.

The Tekedia Mini-MBA has been amazingly successful with hundreds enrolled. On the strength of the impacts, many companies and groups have made requests for specific customized programs, to enable them share and learn at deeper levels, on private boards, with cases, contents, pulses, etc focused around their businesses and sectors. Your team will discuss and stimulate new ideas on this private dedicated board for your company, under the guidance of our faculty. We offer the following to dedicated learning communities: Tekedia General Management Program (Tekedia GMP) and Tekedia Advanced Management Program (Tekedia AMP) across the following sectors.

  • Financial Services (Fintech, Banking, Insurance, etc)
  • Supply Chain (Logistics, Transportation, Supply Chain, Shipping, etc)
  • Manufacturing  (all areas like beauty care, FMCG, agro-processing, construction, agriculture, etc )
  • Energy (oil, gas, renewable, utilities, etc)
  • Services (consulting, ecommerce, tourism, retail, healthcare, education, media &entertainment, etc)
  • Telecom (telcos, ISPs, network operators, etc)
  • Public Sector (government, agencies, ministries and departments of governments)
  • Start-ups (sector agnostic, focusing on the mechanics of building category-king start-ups)

GMP vs AMP

  1. GMP: Challenge and Lab assignments will NOT be graded by our team. Contact for cost.
  2. AMP: Challenge and Lab assignments will be graded by our team. Contact for cost.
  3. Both programs are on-demand which means there is no scheduled start time; we are ready once a client is ready to start.

There is no maximum number of people that can be enrolled from a firm.

The structure follows the generic Tekedia Mini-MBA except that sessions, cases, pulses, etc are all focused around the specific company and its sector. It will be online, and fully on a secure dedicated digital board only your staff will have access for the innovation process. It will last 4 months with contents archived and recorded. There would be scheduled webinars but no physical contacts.

Contact: tekedia@fasmicro.com

https://www.tekedia.com/mini-mba-2/

Covid-19 Strategic Response Framework

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  • As an energy analyst and strategy enthusiast, I believe in numbers because they don’t lie. And most often, I use the Sankey diagram to illustrate energy flows in my analysis to identify where most energy-saving effort is needed. The same strategy can be used to combat Coronavirus across the world.
  • In this document, I have used the Sankey diagram to illustrate various strategic response frameworks to combating the Coronavirus. The diagrams show 3 levels of response frameworks. Level 1 requires the least funding and increases as the strategic response level increases to 3. 
  • The key to success at any level is heavily dependent on the availability of data to track progress from baselines 
  • The World Health Organization (WHO) has told us that It would take time before any vaccine for the virus would be ready. Currently, the most effective response framework is level 3. And the longer we stay at levels 1 and 2, the more the global impact on economies 
  • Remember, no one is safe until everyone is safe
  • This strategic response framework can be adopted by all the countries of the world to conducting their analysis and tracking progress in the fight against Coronavirus.

Download here (PDF).

 

Covidiots And Agege Thugs: The BIG Challenge for Nigerian Police [Video]

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As the number of coronavirus cases keeps rising in Nigeria, the most affected states see more reason to stay at home and observe the lockdown initiative of the federal and state governments. The Federal Capital Territory (FCT), Lagos and Ogun States are at the center stage of the lockdown, due to the number of cases the states have recorded so far.

As at Thursday, there have been 288 cases and seven deaths in Nigeria, with Lagos having the highest number (158) and the FCT 54. These alarming numbers are emphasizing the need to keep social distance and see the lockdown order as a preventive measure.

However, people’s reaction to the stay-at-home order has been discouraging. A situation many believe is as a result of the rumors and conspiracy theories flying around. Many in Nigeria still believe that coronavirus is a hoax or that they have zero chances of being infected. In an opinion poll conducted by Vanguard on the reality of coronavirus on Facebook, about 40 percent of responders said it doesn’t exist.

Such belief is seen by the way people are breaking the social distance rule, especially in Lagos.

On Saturday, actress Funke Akindele Bello and her husband, Abdulrasheed Bello got caught in the act of disobedience of the social distance and it landed them in trouble. The Lagos State has limited social gatherings to 25 people only, a number believed to be not big enough to enable the spread of the virus. Mr. and Mrs. Bello had made a birthday that involved far more than that number of people, including popular music artist, Naira Marley.

Well, the law took its cause, and the couple was found guilty of social disobedience. What surprised many is the overwhelming number of fans who turned up in solidarity to the celebrities in court.

Early this week, heavy traffic jam was reported in Lekki-Epe expressway Lagos, amidst the lockdown order. The effrontery to break the rule appears to have stemmed from the lenience of authorities to enforce it. From the onset, the Lagos State Commissioner of Police (CP) Hakeem Odumosu had warned enforcement officers not to go hard on people moving around, and to allow petty businesses to continue. The relaxation of the enforcement seems to have triggered an avalanche of movement across Lagos State. But that is changing as law enforcement has commenced clampdown on the violators. Yet, Agege is running wild!

Tension started in the area over the weekend following attacks by suspected cultists who went from street-to-street robbing and raping innocent residents.

The attacks in Agege were spillover of last week’s assault on residents and traders at Abule Egba, Alagbado, Meiran, Alakuko, Ijoko and Sango, among others by armed gangs numbering over 200, that has left at least four people feared killed.

Pockets of robbery incidents were alleged to have taken place simultaneously at Olusanya Adenire, Pen Cinema, Oniwaya, Orile-Agege, Dopemu and Agbotikuyo on Sunday, as the hoodlums armed with guns, bottles and cutlasses dispossessed their victims of cash, food and other valuables

Over 78 persons were arrested and over 600 vehicles impounded as the governments intensified efforts to quell the spread of coronavirus. Among them are those who converged on major roads for sports activities.

The statement issued by Lagos State Police Command spokesman, Bala Elkana on Wednesday, disclosed that the suspects were charged to court where they were punished accordingly.

“The suspects were arrested for playing football on major streets and having group exercise in large numbers, thereby neglecting the principles of social distancing. The suspects were arraigned in Chief Magistrate Court Yaba on a one-count charge of violating the social distancing directives of Lagos State Government contrary to Regulation 8(1)(a) &(b) and 17(1) (i) of Lagos State Infectious Disease (Emergency Prevention) regulation 2020, an offense punishable under Section 58 Public Health Law Cap P16 laws of Lagos State, 2015.”

The statement added that “73 of the suspects pleaded guilty to the charge while three pleaded not guilty. The court ordered that all the suspects should be kept in government isolation centers for 14 days and thereafter serve one-month community service. The three suspects who pleaded not guilty will after observing the 14 days isolation, be brought to court for trial.”

On Thursday, police arrested 202 persons for the same offense. Elkana said “The suspects were arrested playing football on major streets and having group exercise in large numbers, which negates the principles of social distancing.”

The suspects were charged to court and fined N10,000 each after they pleaded guilty to violating the stay-at-home order. They were also sentenced to 14 days of community service.

It is hoped that the recent enforcement of the social distance rule in the states will help to force adamant people to stay at home. Though it is believed that apart from those gathering for sports activities and merrymaking, others have been forced out of their homes by hunger.

The palliatives of the governments have been described as ridicule and mockery of families who depend on their daily income to feed. It appears that many more people are going to get arrested if the lockdown goes beyond two weeks. Of course, we must ensure that the Agege thuggery does not scale across the nation.