DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 6397

Nigerian Economy, Finance, Business News Headlines & Insights: 17th April 2020

2

Oil Market Update: When the once sweet oil starts to taste bitter – the story of Nigeria’s Bonny Light…


Since 31st December 2019, Bonny light has now lost over 70% of its value. That’s not the news actually, all oil prices have lost about the same or more.

Here is the news, Bonny light is currently trading at $21.43, that is about $6.31 discount to dated Brent which is currently trading at $27.74, what’s the big deal? As at 31st December 2019, Bonny light ($67.42) was trading at a premium of over $1.4 to the Brent ($66).

Apparently, the Coronavirus pandemic has crashed all prices but why is Bonny suffering more?

No Buyers! We still cannot find buyers for our crude oil, unlike Saudi that is ‘sweetening their oil’ with heavy discounts and credit to refiners.

Remember Mele Kyari’s statement of 12th March 2020 “Today, I can share with you that there are over 12 stranded LNG cargoes in the market globally. It has never happened before. LNG cargoes that are stranded with no hope of being purchased because there is abrupt collapse in demand associated with the outbreak of coronavirus,”

Those cargoes are still stranded.

In its article dated 16th April 2020, S&P Global Platts confirmed that Nigerian crude is in dire straits, gasping for buyers.

“Trading sources said more than 50 million barrels of Nigerian crude for late-April and May loading has still not been sold to end-users. Sellers are resorting to holding some of this oil on inland or floating storage, to hope to sell at a later date, when demand recovers”

“This overhang of Nigerian crude, is possibly the largest ever in recent trading cycles, according to traders”

 

“This has pushed Nigerian crude values to record-lows and is weighing down on the already-depressed Atlantic Basin crude market” S&P Global Platts

 

In our opinion, until the new production cut agreement becomes effective in May, we may not find buyers for our crude as Saudi is bent on increasing production, giving heavy discounts and extending credit to Refiners.

 

We expect the increased activities in the fixed income and equities market to persist since foreign investors cannot find their way out.



Stock Market Update:

Nigeria’s equity market is off to an early gain, currently up by 1.47%. FTSE (UK) – up by 3.31%, DAX (Germany) – up by 4.07%, CAC 40 (France) – up by 4.21% and Nikkei 25 (Japan) – up by 3.15%.


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


Money Market Update:

At the conclusion of T-Bills Primary Market Auction (“PMA”) yesterday, 15th April 2020, yields hit a new year low of 1.93%, 2.74% and 4.00% for 91-day, 182-day and 364-day tenors respectively.

Across tenors, the average return on T-bills is now 2.89%, if you take inflation into consideration, every kobo you invest in T-Bills will come back with a negative yield of -8.30%. That’s a No! No!. You need more than 1.93%, 2.74%, 4.00% or the average of 2.89% to grow your wealth, and we are willing to give more.

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 news headlines.

35 New Cases Of COVID-19 Confirmed By The NCDC
Thirty-five new cases of COVID-19 have been confirmed by the NCDC, taking Nigeria’s total infections to 442. The NCDC confirmed this on Thursday evening via a statement on Twitter. According to the agency, of the 35 cases, 19 were found in Lagos, 9 in the FCT, 5 in Kano and 2 in Oyo state. Read more

 

Why Nigeria Is Not Among Beneficiaries Of Recent IMF Debt Relief – Finance Minister
The Minister of Finance, Budget and National Development Zainab Ahmed, explained on Thursday why Nigeria was not among 25 countries recently granted debt relief by the International Monetary Fund (IMF). Quoting the IMF, she said the relief was for the “poorest and most vulnerable” IMF members. And “since Nigeria is not indebted to the IMF, there is no outstanding debt obligation to be forgiven,” Ahmed said on her official Twitter page. Read more

 

Don’t expect crude demand recovery before July, says OPEC
The demand for crude oil will not recover till the second half the year, the Organisation of Petroleum Exporting Countries has said. OPEC, however, forecast that global oil demand would fall by over six million barrels per day as a result of the effect of the coronavirus pandemic on the oil industry in the first half of this year. Read more

 

Gencos, Discos deny knowledge of FG’s N200bn payment
Power generation and distribution companies on Thursday said they were unaware of any N200bn that was paid to the power sector by the Federal Government in the past three days. Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, had announced on Wednesday that the Federal Government paid over N200bn for power supply in Nigeria. Read more

 

Banks recorded N11.44tn online payments in March
Bank customers carried out a total of N11.44tn worth of financial transactions on the Point of Sales and Instant payment and electronic bills platforms in March, the latest data from the Nigeria Inter-Bank Settlement System have shown. This shows a 34 per cent growth from the NIP, PoS and e-Bills figures of N8.54tn recorded in 2019. Analysis of the data indicated that the customers carried out a total of N10.97tn worth of financial transactions on the instant payment platform in March 2020. Read more

 

European shares gain as Trump plans to reopen U.S. economy
European shares jumped on Friday, clawing back weekly declines as financial markets globally drew comfort from U.S. President Donald Trump’s plans for a gradual re-opening of the U.S. economy and reports of a potential drug to treat COVID-19. The pan-European STOXX 600 index was up 2.5% at 0712 GMT, shrugging off data showing China suffered its worst economic contraction in almost three decades as the pandemic crushed business activity. Read more

 

Dollar steadies as overnight sentiment boost eases off
The dollar steadied in early London trading on Friday after its rally was cut short by an overnight boost to risk sentiment from news of apparent success in a Covid-19 treatment drug trial and early plans to reopen the U.S. economy. The dollar, which has closely tracked risk sentiment through the coronavirus crisis, was broadly flat against a basket of currencies, up less than 0.1%. Read more

 

Super-charged stocks race toward second-best week ever
World stock markets made a super-charged sprint towards an 11% weekly gain on Friday – their second best of all time – after President Donald Trump laid out plans to gradually reopen the coronavirus-hit U.S. economy following similar moves elsewhere. Europe’s main markets (FTSE) (GDAXI) and Wall Street futures made 3% gains in early European trading too, putting the pan-regional STOXX 600 (STOXX) up more than 7% for the week and MSCI’s 49-country world index <. MIWD00000PUS.> up 10.5% already. Read more

 

Stocks – Dow Cuts Losses as Traders Eye Trump Update on Reopening Economy
The Dow cut its losses and ended higher Thursday, shrugging off a surge in jobless claims as investors awaited an update from President Donald Trump on the prospect of reopening the economy, even as several states extended lockdown measures. The Dow rose 0.14%, or 33 points, theS&P 500 was up 0.58% and the Nasdaq Composite rose 1.66%. Read more.

 

Corporate Disclosures:

 

Africa Prudential Plc – Q1 Unaudited Financial Statements for the Period ended 31 March 2020- See details

Zenith Bank Plc – Notice of Board Meeting and Closed Period for Q1 2020
In line with listing regulations of the Nigerian Stock Exchange for quoted companies, Zenith Bank Plc hereby informs its shareholders, the NSE and the investing public that the Board of Directors of the bank is scheduled to meet on Wednesday, April 29, 2020 to consider the Group’s unaudited Financial Statement for the quarter ended March 31, 2020. Read more

e-Tranzact International Plc – Notice of Board Meeting and closed to Consider 2019 AFS

We hereby give Notice that a meeting of the Board of Directors of eTranzact International PLC (the Company) will now hold on Friday, April 24, 2020, via teleconference to consider the Company’s Audited Financial Statements for the Year ended December 31, 2019 (2019 AFS). Please note that the earlier scheduled meeting for March 26, 2020 was suspended in response to the COVID-19 Pandemic and was unable to hold. Read more

Africa Prudential Plc – Financial Highlights for Q1 2020- 
See details
FCMB Group Plc – Notice of change of AGM Venue

In view of the Covid-19 pandemic and the federal government restriction on public gatherings, the 7th Annual General Meeting of FCMB Plc scheduled to hold at the shell Hall Muson Center, Onikan Lagos will now hold at the registered address of the company, First City Plaza, 44 Marina, Lagos. Read more

 

Wapic Insurance Plc – Notice of Board Meeting and Closed Period for Q1 2020 Accounts
Wapic Insurance wishes to inform the Nigerian Stock Exchange and the Investing Public that a meeting of the Board of Directors of Wapic Insurance Plc (“The Company”) has been scheduled to hold virtually on Monday, the 27th day of April, 2020 to amongst other things review the Company’s performance for the first quarter of the 2020 Financial Year as well as consider and approve the Q1, 2020 Unaudited Financial Statement of the Company. Read more

 

Sterling Bank Plc – Notice Annual General Meeting
NOTICE IS HEREBY GIVEN that the 58th Annual General Meeting of Sterling Bank Plc will be held at the MUSON Centre, Onikan, Lagos, on Wednesday, the 20th day of May, 2020 at 10.00 a.m to transact the following business read more

 

SFS Real Investment Trust – Unaudited FIRS Results for the Period ended 31 March 2020
See details here

 

SFS Real Estate Investment Trust – Key Performance Metrics for the Month Ended 31 March 2020
See details here

Be Honoured, for Excellence. Begin Here.

0

Registration continues for Tekedia Mini-MBA. Classes begin exclusively online on June 22, 2020 to end Oct 22 (four months). Program is self-paced which means your work would not be affected as you can consume our academic materials (class notes, cases, videos, etc) anytime. On Mondays, contents are pushed to the digital board, and you can study them at your time and pace.

Invest $140 or local equivalent for a top-grade professional development. Our program has elevated people. Our faculty are business leaders from BUA Group, Deloitte, Schlumberger, Access Bank, Queen’s University, Nigerian Breweries, St. Mary’s University, Polaris Bank, Infoprive, esure Group Plc,  and other leading global organizations. The theme is simple: Growth, Innovation and Execution.

Join us by registering today – and ADVANCE. In edition 1, co-learners  from 16 countries joined us (not sure many universities can write that). Learn the mechanics of business, and REACH higher. Be honoured, for excellence! Begin here – https://www.tekedia.com/mini-mba-2/

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

 

The Destination – A $300 iPhone

3

Let me celebrate a call: as Apple was ramping up prices on the iPhone, I predicted in August 2017 that “Apple must have a phone with a price range in the neighborhood of $300-$450”. (The new iPhone SE begins at $399.) The debate on LinkedIn was intense as many dismissed any strategy of Apple going downwards on pricing. My prediction was based on finite hardware improvement. Yes, there is a ceiling on how far you can improve the value and quality on hardware to command more non-marginal dollars. What can you do to double the price of an electric iron? With other devices advancing, Apple’s moat of exclusive hardware packaged on proprietary software will crack for entrance into the castle. Simply, phones will have largely marginal value improvements for years!

More so, as I have noted, I maintain that we would see the iPhone being priced at $300 soon. Why? Apple is pushing a services-driven strategy, and that means the more people who are using the hardware, the better. It is a better business to have ten people on Apple Music, Apple Pay, etc than just one person who can afford an expensive hardware. The lifetime value of those ten customers from a revenue perspective would be superior to the money made from the one expensive buyer. With ten users, retailers will open their systems for partnerships. In short, across all metrics, you win with more users of iPhone.

On average, these trends are negative for Apple: anything that declines the absolute number of iPhone sold is bad because even the services which are supporting higher revenue cannot grow without more people using iPhones since Apple services are exclusive to the hardware.

[…]

Apple will be fine and investors will align. Simply, the company is making it clear that its future is going to include services. So, if you hold Apple stocks because of iPhones and iPads, you may have to reconsider. By dropping the disclosure, Apple wants investors to focus on its revenue bottomline and not the number of devices sold. As far as the company is concerned, if it can grow revenue through payment, apps, licensing, etc, investors should not overly care what is happening on hardware as the company transmutes into making services a key part of its future. Simply, Apple has gone Services.

So, the base of my call – $300 – remains possible for the iPhone.

TrustBanc Daily Stock Market Scorecard, 16th April 2020

0

Tracking from 6th April 2020, the market has now gained over 9% in 6 consecutive trading days and recovered over N980 billion for Investors. The last time the market enjoyed this bullish run was an 8-day streak between 2nd and 13th January 2020.

Today, the Bulls held on to their winning run with a marginal gain of 0.07% to close the All-Share Index (ASI) at 22,554.84 and abate the year-to-date loss of the Market to 15.97%.

See the image below for a complete snapshot of market performance.

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

Market Breadth:  Profit-taking activities on the shares of Banks weakened the breadth of the market as it recorded 18 gainers compared to 28 recorded yesterday. Bargain hunters pushed the price of NESTLE to the top of the gainers list along with NB and CONOIL. STERLING and ACCESS top the table of 20 losers, this is the first time the losers have dominated the gainers in 7 trading days. See the list of top gainers or losers below:

Market Turnover: Heavy profit-taking on the shares of ZENITH and bargain exchange in the shares of blue-chips like NESTLE and DANGCEM increased the volume of the market by 16.13% and value by 29.60%. See top 10 traded stocks below:

It’s a wrap.

Integrating Sustainability Principles into Business Continuity Plan: Mitigating COVID-19 Impacts in Africa

7

The Organised Private Sector (OPS) players are the engines and drivers of economic growth in Africa, therefore faces considerable risks in light of the COVID-19 pandemic which has caused an unprecedented human and health crisis. “This is the defining global health emergency of our time and the greatest challenge we have faced since World War II. Since its emergence in Asia late last year, the virus has spread to every continent except Antarctica.” Cases are rising daily in America, Europe and slightly in Africa at the moment. Countries are racing to flatten the curve by testing and treating patients, carrying out contact tracing, limiting travel, quarantining citizens, and prohibiting large gatherings such as religious activities, sporting events, concerts, and schools.

“The pandemic is moving like a wave—one that may yet crash on those least able to cope. But COVID-19 is much more than a health crisis”. It has caused significant losses of life and property, and that has highlighted business vulnerabilities to sustainability issues – environmental, social and governance (ESG) factors.    The analysis by the World Bank shows that “the pandemic will cost the African region between $37 billion and $79 billion in output losses for 2020 due to a combination of effects. They include trade and value chain disruption, which impacts commodity exporters and countries with strong value chain participation; reduced foreign financing flows from remittances, tourism, foreign direct investment, foreign aid, combined with capital flight; and through direct impacts on health systems, and disruptions caused by containment measures and the public response.” In the past few weeks, there has been a number of discussions on the intersection between sustainability and business continuity. 

I have been asked how possible it is to implement business continuity plans adopting more sustainable business processes such as ISO 26000 Social Responsibility, ISO 45001 Occupational Health and Safety, ISO 14001 Environmental Management and ISO 9001 Quality Management either in isolation or as an integrated management system. These are valid concerns by business leaders especially in Africa where a majority of these organisations may not have a Business Continuity Plan (BCP). For the sake of clarification, “a Business Continuity Plan (BCP) is a process that outlines the potential impact of disaster situations, creates policies to respond to them and helps businesses recover quickly so they can function as usual”. A BCP is generally created in advance of a disaster and involves the company’s key stakeholders. The main goal of a BCP is to protect personnel and assets, both during and after an emergency. 

On the other hand, “a Management System (MS) is a set of policies, processes and procedures used by an organisation to ensure that it can fulfil the tasks required to achieve its objectives while  an Integrated Sustainability Management System (ISMS) is a complete framework that combines all aspects of an organisation’s systems, processes, and any standards including business continuity plan that the business follows to achieve desired business goals in a sustainable manner.” This combined system allows a business to meet all its obligations, addressing all elements of the management system as a whole rather than looking at the individual standards and their requirements separately.

The COVID-19 crisis is providing a training ground for organisations to adopt a more proactive risk-based approach with regards to their operations as well consider the parts of the business that can — and must — be digitised. This will be a key requirement in order to become more resilient for the future. Sustainability is now more than ever, synonymous with business continuity and resiliency. The pandemic will make it relatively easy to discern which organisations are really committed to their sustainability goals and intentions. The main need in the short term will be the medical and economic support for those most affected by this crisis. At an organisational level, cash at hand during a crisis is key. It is important to sustain cash flow to make sure you have some level of liquidity for some time. Figure out what expenses you can cut and check your account receivable to see what you can collect. Don’t assume this will all be over in two weeks or a month. This is likely to be the new normal for some time. Remember, African countries do not have superb fiscal policies with built in space for social protection interventions, especially targeting the organised private sector and workers in the informal sector, that will also sow the seed for future resilience of our economies. All these are integral part of the sustainability framework as will be discussed below.

Plan-Do-Check-Act Framework (PDCA)

The widely accepted ISO Plan-Do-Check-Act Framework can get you started in integrating sustainability into your business continuity plan tailored to suit any area of business: 

The PDCA framework

1. PLAN

Establish objectives and processes required to deliver the desired results. These may include the following-

  • Policy, purpose, and scope
  • Goals and objectives
  • Procedure and process documentation
  • Key roles and responsibilities
  • Risk mitigation plans including Environmental, Social and Governance 
  • List of tasks required to keep operations flowing
  • Explanation of where to go during an emergency
  • Information on data backups and site backup
  • Operational and service delivery backup 
  • Plan maintenance protocols
  • Coordination with local emergency personnel
  • Contact information of management personnel
  • Internal review process 
  • Define continual improvement and management review criteria 

2. DO

The “Do” phase allows the plan from the previous step to be done. Small changes are usually tested, and data is gathered to see how effective the change is. This is the main operational stage therefore I will discuss it in five subheadings as identified by Robin MeyerhoffBrand below: 

  • Pick your team

Get the right team together and identify your goals. Be realistic about what you can sustain and how you should prioritize. It is unlikely that your organisation is able to continue business as usual right now. That’s why you need to (virtually) bring together the people who understand your core business competencies well enough to make judgment calls with limited information. Leadership direction must come from the most senior levels (CEO and/or Board of Directors). Then form a steering committee that includes senior representatives from operations, finance, human resources, information technology, and legal as well as input from the heads of your various product or service lines. If you don’t have a plan now, you probably don’t have a business continuity planner on your team. You should identify a member of this core team who can serve in that function, get trained and lead your process.

  • Establish the facts

Reliable data underpins both crisis planning and response. It’s essential that the crisis plan outlines how information will flow and that everyone has confidence in its veracity. Strong data also reinforces a central element of crisis planning — exploring different scenarios and how they could affect the business in the short, medium and long term. Previous studies have found that three-quarters of those with documented BCP post-crisis strongly recognize the importance of establishing facts accurately during the crisis. They are more likely to say that in the midst of the crisis, they did gather facts accurately and quickly — and those facts were used effectively to inform their response strategy.

  • Understand your risks

Identify the current or potential risks that can adversely affect your organisation. Obviously, this includes the current pandemic, and you should think about how you can continue to operate if 20 percent of your workforce is out sick or 90 percent is affected by the lockdown policy. But you should also dig deeper. For example, work from home opens you up to all kinds of cyber vulnerabilities and other technical challenges such as Occupational Health and Safety issues and employee loyalty. Market intelligence is also crucial at this stage to access market constraints, risks (and even opportunities) created by the pandemic in line with your area of expertise. Once you have a list of top risks, assess those risks to determine the potential impacts, both positive and negative to your organisation, enabling you to determine the most effective use of resources to reduce potential impacts. 

  • Analyse the impact

Identify and prioritize your organisation’s key functions and processes to identify which ones will have the greatest impact if they aren’t available. For example, many of us are currently being forced to test how well we operate without access to certain facilities for a prolonged and ultimately unknown period of time. Others are now required to work remotely on projects with little or no training or supervision while a few environmental issues especially regarding waste disposal and power generation have also been identified. Once you’ve identified how the current scenario will impact your business, you need to analyse the findings to identify any gaps between the requirements for continuing acceptable service levels with minimal disruption and your current ability to deliver those requirements.

  • Devise a strategy

Use the analysis that you’ve just done to decide on a plan of action. You will need to come up with practical, cost-effective strategies to reduce the deficiencies you identified during the risk assessment and business impact analysis processes. You’ve identified what is at risk – social, environmental and economic, and how it will hurt your business. Now you can go through and brainstorm on how to minimize those risks with the information and resources you have at hand. Implement immediately to save cost and reduce downtime. 

Remember that though corporate sustainability managers work to develop and implement sustainability strategies for organisations but more importantly, they work with all business units to analyse sustainability challenges and opportunities in the marketplace. This could be through localisation of processes, product design or change in operational process. Therefore, in addition to improving on organisation’s public image and meeting regulatory requirements, it is their duty to also help improve the bottom line by instituting practices that minimize waste and maximize efficiency. 

3. CHECK: Test results and present recommendations

During the check phase, the data and results gathered from the ‘do phase’ are evaluated. Data is compared to the expected outcomes to see any similarities and differences. The testing process is also evaluated to see if there were any changes from the original test created during the planning phase. If the data is placed in a chart or dashboard, it can make it easier to see any trends if the PDCA cycle is conducted multiple times. This helps to see what changes work better than others, and if said changes can be improved as well. If the Business Continuity Plan is to recognise just one standard for instance ISO 26000 SR, then the seven core principles of SR need to be evaluated in details which include – Accountability, Transparency, Ethical behaviour, Respect for stakeholder interests, Respect for the rule of law, Respect for international norms of behaviour, Respect for human rights. Similarly, if two or more sustainability standards for instance ISO 45001 – OHS and ISO 14001 – EMS are to be implemented as part of the business continuity plan, the process is same but will include data collection and analysis based on these two standards. This is easily achieved using process and procedure documents as provided for during the planning stage. In case, you have difficulties, approach an experienced Sustainability Consultant with expertise in strategy implementation. 

4. ACT: Improve on the framework

Records from the “do” and “check” phases help identify issues with the process. These issues may include problems, non-conformities, opportunities for improvement, inefficiencies and other issues that result in outcomes that are evidently less-than-optimal. Root causes of such issues are investigated, found and eliminated by modifying the process. Risk is re-evaluated. At the end of the actions in this phase, the process has better instructions, standards or goals. During a crisis situation as it is presently, this process must not take more than a couple of days. The business can get back to normal now. Planning for the next cycle can proceed with a better baseline. Work in the next do phase should not create recurrence of the identified issues; if it does, then the action was not effective.

Getting back to Normal – Business as usual, getting back to normal is the goal once you have gotten through the main parts of a disaster or downtime in your business. Disaster recovery is the part of your plan that allows for you to get back to a form of normalcy where you can again perform the tasks that run your business. This may take some time, considering the global nature of the pandemic. If you don’t have employees that were infected by the COVID-19 virus, your organisation should be able to get back to normal business shortly after the lockdown.

Today, we face the Herculean task of protecting the lives of hundreds of thousands of people, the health of millions and the livelihoods of billions. Nothing should detract us from winning this war. But as we fight, we should seize the chance too to create a new, more resilient, healthy, equal society that lives in equilibrium with nature. This is a more practical approach to our present-day realities. 

Corporate behaviour is a microcosm of today’s economic system. As we have seen in past weeks in Nigeria, there has been some wonderful stories of corporate integrity, philanthropy, ingenuity and energy to help fight this pandemic. And there have also been some truly shocking stories of companies that have thrown loyal staff overboard at the first sight of trouble, while others have profited on our misfortune. However, most companies that will prosper in the next decade will be the ones that have taken the management-speak of “sustainability” and turned it into reality. Integrate sustainability principles into all their operations and relationships. They do the right things to their customers, employees, shareholders, host communities, the environment, etc. Above all, they are socially useful and relevant in all that they do. This is the future of business.