Wednesday, 30 September 2015
Bizblog term of the day; Economy Recession
A recession is defined as a decline or drop in economy growth of a nation which is associated with high unemployment ,inflation rate,low business profit,low investment spending,high interest rate,unfavorable government policies,slowing gross domestic product,(by GDP I mean the market value of goods & services produced in a country within a given period of time).
A recession might last for 6,12 to 18 months but any recession that cuts into 2 to 3 years leads to economy depression which is a prolonged recession period, meaning an economy will experience no growth in output.
It has both negative and positive impact but the negative impact on individuals,firm and the country at large is much more higher than the positive impact as individuals will not be able to pay bills,weaker firms will exit the market leaving stronger firms with less competitors.
32m account holders yet to register for BVN,CBN warns that deadline will not be extended
As the October 31st deadline for the Bank Verification Number registration draws nearer, the Central Bank of Nigeria has warned that it will not be extending the deadline for the registration exercise.
The apex bank has said that 32 million active bank accounts are yet to be enrolled on the Biometric Verification Number (BVN). In a statement in Abuja weekend, Alhaji Mu’azu Ibrahim, CBN Director, Corporate Communications, said CBN was concerned by the number of account owners yet to enroll, considering that the exercise would end by October 31.
CBN in collaboration with all banks in Nigeria on February 14, 2014, launched the BVN, which is a centralized bio-metric identification system for the banking industry. It aims at addressing issues of identity theft and fraud and will help to discover blacklisted customers, reduce queues in banking halls and standardize efficiency of banking operations.
Tuesday, 29 September 2015
GMD/CEO of UBA wins CEO of the year award from African investor group
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| MR PHILIP ODUOZA |
From a long shortlist that contains CEO of Orascom Construction Company, Nassef Sawiris; CEO MTN Group SA, Sifiso Dabengwa ; CEO Lafarge Africa, Guillaume Roux; CEO GTBank, Segun Agbaje; GMD Dangote Sugar, Graham Clark; and Co-CEOs, Standard Bank, Ben Kruger/Sim Tshabalala. Mr Philip Oduoza took home the award.
Africa investor (Ai) is an international investment and communications group based in South Africa. Every year it organises the institutional investment summit as a platform for public and private sector leaders in Africa to dialogue with global counterparts on ways to invest and grow businesses in Africa.
Commence E-dividend enrollment- SEC to registrars and banks
The e-Dividend scheme has been a priority initiative for the entire capital market in a bid to curb the growth of unclaimed dividends and improve the overall efficiency of Nigeria’s equities markets.
Bye bye to the old way of presenting printed dividend cheques to banks for claims.
CBN governor warns the Country against Economy Recession
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| Mr Godwin Emefiele |
A Financial analyst who was invited by a TV station expatiated on the topic stating that sectors that could be affected includes the power ,manufaturing,educaton,financial sectors.
Symptoms that brought about the projection;
The CBN and keen watchers of the economy are aware that the National Bureau of Statistics, NBS, announced that our Gross Domestic Product, GDP, grew by 2.35 per cent in the second quarter of this year – which ended in June. It was the second quarter in a row that the economy will record less than budgeted performance. Incidentally, 2.35 per cent growth, when the population continues to grow at close to 2.85 per cent, means that the average Nigerian is getting poorer
The economy grew at 6.54 per cent in the second quarter of 2014; the growth dropped to 2.35 per cent this year. The final year projection for 2015 is expected to be 2.63 per cent compared to 6.22 per cent last year. Last year, we were strongly listed on the JPMorgan index, enabling Nigeria to obtain loans/credit at favourable rates. Now, we are out of it; and the country will pay more to borrow.
The Treasury Single Account (TSA) policy imposed on banks by the Buhari administration is already having its predictable effect. Liquidity is low in the banking sector and interest rates are escalating – portending lower investments. Foreign investors are divesting from the Nigerian Stock Exchange (NSE) and crude oil prices are likely to remain low for the whole of 2016.
Wednesday, 23 September 2015
Bizblog term of the Day : Initial Public Offering (IPO)
IPO is an offer whereby a company announces the sale of equity to the public.A company that wishes to switch from LTD(private) to PLC(public) issues an IPO to the public inorder to expand their capital base.In order words,IPO simply means GOING PUBLIC.
In the tune of going public,intending investors are provided with a document called PROSPECTUS.It states the details about the equity being offered to the public,the organisation's activities,financial information that will help investors make informed judgement.
List of top gainers on stock exchange trading floor
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Instagram hits 400million users
Going social this time around,and yes i have an instagram account ,its one of the social app I enjoy using.
The picture & video sharing application has rocketed past the 400-million-user mark, with more than 80 million pictures shared daily at the Facebook-owned service.
The number of people sharing pictures and videos each month using Instagram soared from 300 million at the start of this year and tops the number of people using Twitter monthly by nearly 100 million.
'While milestones like this are important, what really excites us is the way that visual communication makes the world feel a little bit smaller to every one of us,' Instagram said in a blog post.
'Instagrammers continue to capture incredible photos and videos from all corners of the Earth (and even the solar system).'
More than half of the last 100 million people to join Instagram live in Europe or Asia, with Brazil, Japan, and Indonesia seeing the strongest growth, according to the service.
The list of high-profile new Instagram users who quickly won legions of followers included David Beckham, Caitlyn Jenner and footballer Toni Kroos.
Earlier this month, Instagram unveiled plans to expand its offerings to advertisers, opening up possibilities for global marketing efforts on the photo-sharing network.
The expansion is intended to allow advertisers to launch global campaigns in a variety of formats including video ads of up to 30 seconds.
Instagram, which was acquired by Facebook in 2012, has had only limited advertising opportunities up to now.
The picture & video sharing application has rocketed past the 400-million-user mark, with more than 80 million pictures shared daily at the Facebook-owned service.
The number of people sharing pictures and videos each month using Instagram soared from 300 million at the start of this year and tops the number of people using Twitter monthly by nearly 100 million.
'While milestones like this are important, what really excites us is the way that visual communication makes the world feel a little bit smaller to every one of us,' Instagram said in a blog post.
'Instagrammers continue to capture incredible photos and videos from all corners of the Earth (and even the solar system).'
More than half of the last 100 million people to join Instagram live in Europe or Asia, with Brazil, Japan, and Indonesia seeing the strongest growth, according to the service.
The list of high-profile new Instagram users who quickly won legions of followers included David Beckham, Caitlyn Jenner and footballer Toni Kroos.
Earlier this month, Instagram unveiled plans to expand its offerings to advertisers, opening up possibilities for global marketing efforts on the photo-sharing network.
The expansion is intended to allow advertisers to launch global campaigns in a variety of formats including video ads of up to 30 seconds.
Instagram, which was acquired by Facebook in 2012, has had only limited advertising opportunities up to now.
Ecobank, NACA Partner on Youth Development
Kogi State Governor, Idris Wada has commended Ecobank Nigeria for funding the multi-million naira Ecobank-National Agency for the Control of AIDS (NACA) Youth Friendly Centre at Kogi State University, Anyigba.
Inaugurating the centre at the weekend, Wada stated that the partnership between Ecobank and NACA to establish the centre in the state was impressive, stressing that it would go a long way to improving the lives of youths and check the prevalence of the dreaded HIV/AIDs and other health related diseases.“Any effort to check prevalence of critical diseases of modern times must be appreciated,” the governor was quoted to have said in a statement.
Also, the Head, Personal Banking, Ecobank Nigeria, Kingsley Umadia, said the establishment of the centre was part of Ecobank desire to give back to society."For us at Ecobank, the vision of the youth friendly centre stems from our desire to use all available opportunity to give back and contribute effectively towards the society in which the bank operates.“We believe young people need a friendly environment that would offer recreational facilities and at the same time provide free guidance and counselling HIV/AIDS and other health issues," he added.
On his part, the Vice Chancellor, Kogi State University, Prof. Hassan Isah, said he was elated as his school was the first state university to enjoy such support.
He added: "This project midwifed by NACA and funded by Ecobank is commendable. The challenge of funding is increasing level of engagement with organisations, philanthropists, NGOs and parastatals. We will put the facility in good use."
The Director General, NACA, Prof John Idoko, who was represented by the agency’s Director, Partnership Coordination, Emmanuel Alhassan, stated that the partnership has so far produced eight centres in various universities across the country.
Lagos state governor appoints Mr Olufolarin Ogunsanwo as new LIRS Chairman
Governor Ambode had earlier approved the appointment of new Directors to the Board of LIRS.
The new directors include Mrs. Akintola Bolaji, Moroof Oludare Tijani, Mrs. Arinola Kola-Daisi, Seyi Alade, Mrs. Afolayan Folashade and Ayodele Adebayo with Jimi Aina serving as Board Secretary. The new officers are expected to resume work immediately and work towards implementing the vision of the state government.
World Bank Appoints New Country Director for Nigeria
The World Bank on Monday announced Rachid Benmessaoud as the new Country Director.
He is also the Coordinating Director for West Africa Regional Integration Programme.
Benmessaoud joined World Bank in 1990 as an Energy Planner in the then Europe, Middle East and North Africa Vice-Presidency.He takes over from Marie Francoise Marie-Nelly whose tenure ended in July 2015.
The new country director, a Moroccan national has held various positions in the Bank, including Lead Energy Specialist, Operations Advisor for India with his most recent assignment as Country Director for Pakistan.
Benmessaoud will lead the Country Programme and Team to continue to improve the impact of the World Bank's portfolio in Nigeria and to support the Government's development priorities including power, education, quality of public spending, trade and regional integration, the bank noted in a statement made available to THISDAY.
He has worked on energy, infrastructure, and municipal finance projects in North Africa, Central Europe and South Asia.As an electrical engineer, Benmessaoud has a Master’s Degree in Business Administration from the USA and a Doctorate-Engineering Degree from France.
His appointment as Country Director for Nigeria will take effect from October 1, 2015.
Expert Seeks Improved Tax Compliance by Non-resident Individuals & Companies
Foreigners who are employers and employees in Nigeria have been advised to ensure full disclosure in their tax payment.
Deputy Director, Lagos State Internal Revenue Service (LIRS), Mr. Bicci Alli, stated this in report titled: “Taxation of Expatriates, Non Resident Individuals and Corporation,” presented in Lagos recently.
He identified some issues and challenges tax official experience with employers of foreign nationals to include non-remittance, under- remittance and late remittance of PAYE and other taxes; deliberately under-taxing employees’ income through the design and implementation of various schemes aimed at tax evasion; refund of tax paid - tax on tax; non-disclosure of offshore income arising from the Nigerian employment and acquisition of fixed assets in the names of the employees.
Others, according to him, include abuse of the Nigerian court process by obtaining court order restraining enforcement of warrant of restrain based on spurious reasons; amongst others.
He stressed that every adult – foreign or Nigerian- is chargeable to tax in Nigeria depending on his residency status and income. According to the LIRS senior official, residency in Nigeria is determined in terms of physical presence in the country and not by nationality.
Therefore, for tax purposes an individual who is physically present in Nigeria for a minimum of an aggregate of 183 days or six months in a calendar year is regarded as a Nigerian resident. But a non- resident individual is liable to tax only on the income from his investment(s) in Nigeria.
“In line with Section 3 (1)(b) of PITA 1993 , taxable income of an employee includes any salary, wage, fee, allowance or gains or profit from employment including compensation, bonuses, premiums, benefits or other perquisites allowed or given or granted by any person to an employee.
“With the amendments to Personal Income Tax Act (PITA), 2011, the total emoluments of an employee is taxable irrespective of the manner the component is classified.
He pointed out that a non-resident becomes liable to tax from the day he commences to carry on trade or business in Nigeria. He only becomes liable to tax on employment income when he becomes resident.
Also, for a non-resident company, which are companies not registered or incorporated in Nigeria but derived income from Nigeria, he noted that the fact that a company had been exempted from incorporation does not mean exemption from Nigeria’s income tax payment.
“Whether or not a company is resident, it shall be subject to tax in Nigeria on the income derived from Nigeria. Taxation of non-residents is governed by domestic tax legislation and treaty provisions.
“Having known who are considered as non-resident individuals and corporations/companies, it will be pertinent to know under what sections of the domestic legislation that the non-residents are liable to tax,” Alli added.
Culled from This Day
Deputy Director, Lagos State Internal Revenue Service (LIRS), Mr. Bicci Alli, stated this in report titled: “Taxation of Expatriates, Non Resident Individuals and Corporation,” presented in Lagos recently.
He identified some issues and challenges tax official experience with employers of foreign nationals to include non-remittance, under- remittance and late remittance of PAYE and other taxes; deliberately under-taxing employees’ income through the design and implementation of various schemes aimed at tax evasion; refund of tax paid - tax on tax; non-disclosure of offshore income arising from the Nigerian employment and acquisition of fixed assets in the names of the employees.
Others, according to him, include abuse of the Nigerian court process by obtaining court order restraining enforcement of warrant of restrain based on spurious reasons; amongst others.
He stressed that every adult – foreign or Nigerian- is chargeable to tax in Nigeria depending on his residency status and income. According to the LIRS senior official, residency in Nigeria is determined in terms of physical presence in the country and not by nationality.
Therefore, for tax purposes an individual who is physically present in Nigeria for a minimum of an aggregate of 183 days or six months in a calendar year is regarded as a Nigerian resident. But a non- resident individual is liable to tax only on the income from his investment(s) in Nigeria.
“In line with Section 3 (1)(b) of PITA 1993 , taxable income of an employee includes any salary, wage, fee, allowance or gains or profit from employment including compensation, bonuses, premiums, benefits or other perquisites allowed or given or granted by any person to an employee.
“With the amendments to Personal Income Tax Act (PITA), 2011, the total emoluments of an employee is taxable irrespective of the manner the component is classified.
He pointed out that a non-resident becomes liable to tax from the day he commences to carry on trade or business in Nigeria. He only becomes liable to tax on employment income when he becomes resident.
Also, for a non-resident company, which are companies not registered or incorporated in Nigeria but derived income from Nigeria, he noted that the fact that a company had been exempted from incorporation does not mean exemption from Nigeria’s income tax payment.
“Whether or not a company is resident, it shall be subject to tax in Nigeria on the income derived from Nigeria. Taxation of non-residents is governed by domestic tax legislation and treaty provisions.
“Having known who are considered as non-resident individuals and corporations/companies, it will be pertinent to know under what sections of the domestic legislation that the non-residents are liable to tax,” Alli added.
Culled from This Day
Tuesday, 22 September 2015
Fidelity Bank begins Saturday Banking
Fidelity Bank Plc has announced its commencement of Saturday banking services in selected branch locations across the country.This initiative, according to the bank, is in line with its mission to make financial services easy and accessible.
In a statement from the bank, the service became effective September 12, 2015 and commences between 10.00am to 2.00pm in 15 select Fidelity Bank branches across the country.
The branches include: Ketu, Alaba, Computer Village, Gbagada, Egbeda, (Lagos); Ekpoma, Mission Road (Edo State); Aba 3, Umuahia (Abia) and Challenge, Ibadan. Others are Polo Park, (Enugu), Nnewi, Onitsha Main (Anambra); Kano 3 and Owerri Main.
The Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mr. Nnamdi Okonkwo, said the introduction of Saturday banking services further reaffirmed the bank’s commitment towards the creation of new customer experience in service delivery.
“We are actively changing the way we do business; becoming more focused on our customers’ needs and exceeding their expectations from us,” he added.
He noted the changing business environment and insisted that the only way to remain relevant to customers was to stay in tune with the times.
In terms of value proposition to customers, Okonkwo said Saturday banking will allow customers to send and receive money to and from over 200 countries of the world.
“The bank’s electronic banking platform will undoubtedly bear the weight of this new strategic direction as branch locations offering Saturday banking service will automatically become dedicated centres for money transfer and online remittances,” he said.
In view of this, Okonkwo said the bank would leverage on technology to improve customer service experience.
He explained that the bank’s electronic banking system “has drastically reduced the turn-around-time for online customer set up at all touch points, a clear testament of the bank’s resolve to continually surpass customer expectation.”
According to Fidelity Bank boss, customers can conduct bank-to-bank transfers seamlessly via Fidelity mobile platforms.
To support all these innovations, Okonkwo said that the bank is in the process of migrating its core banking platform from Finacle version 7 to Finacle version 10. The migration, which is part of the banks transformation initiative, will enhance its operational efficiency, strengthen innovation capabilities and support scalable growth. “Finacle version 10 will enable us to implement services such as enhanced SME banking, management information system reporting, application monitoring and disaster recovery automation.
Former Minister of Finance bags two appointments
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| Ngozi-Okonjo-Iweala |
Nigeria's former Minister of Finance, Ngozi Okonjo-Iweala, was on Monday appointed into two key international positions, her Media Adviser, Paul Nwabuikwu, said in a statement in Abuja.
Apart from being named Chair of the 28-member Board of the Global Alliance for Vaccines and Immunisation, GAVI, Mrs. Okonjo-Iweala also joined the 167-year-old global sovereign advisory investment firm, Lazard, as Senior Advisor.
GAVI is a $12 billion multilateral international public-private partnership committed to saving the lives of children and protecting people’s health by improving access to immunization in developing countries, including Nigeria.
GAVI, which disburses grants of upwards of $1.8 billion annually to developing countries for immunization programmes, brings together developing countries and donor governments, including the World Health Organization, WHO; United Nations International Children’s Education Fund, UNICEF, and the World Bank.Other partners to the global agency include the vaccine industry in both industrialized and developing countries, research and technical agencies, civil society, the Bill & Melinda Gates Foundation and other private philanthropists.
GAVI was funded by governments of Australia, Brazil, Canada, Denmark, France, Germany, India, Ireland, Italy, Japan, the Kingdom of Saudi Arabia, Luxembourg, the Netherlands, Norway, the People’s Republic of China, Republic of Korea, Russia, South Africa, Spain, the State of Qatar.
Others include the Sultanate of Oman, Sweden, United Kingdom, and the United States as well as the European Commission, the Organisation of Petroleum Exporting Countries, OPEC Fund for International Development, OFID and other institutional and corporate partners.
Between 2000 and 2015, GAVI disbursed about $425million, an average of about $30million per annum in grants to Nigeria, for vaccination and immunization of children, including polio vaccines.
Mrs. Okonjo-Iweala would be succeeding a former Norwegian Minister of Health and current Secretary General of the Nordic Council of Ministers, Dagfinn Høybråten, as Chair of GAVI.
Previous Chairs of the group include former President of Ireland, Mary Robinson, and respected education activist and former First Lady of South Africa, Graca Machel.
At Lazard, Mrs Okonjo-Iweala would work with the former Prime Minister of Australia, Paul Keating; former Special adviser to President Bill Clinton, Vernon Jordan; former Spanish Economy Minister and current Senior Managing Director at Lazard, Rodrigo de Rato; former chair of NASDAQ, Frank Zarb; former Finance Minister of Chile, Andres Velasco, and former British Minister of Parliament/Secretary of State for International Development, Andrew Mitchell.
Global Head of M&A and Sovereign Advisory of Lazard, Matthieu Pigasse, expressed happiness for Mrs. Okonjo-Iweala’s appointment.
“We are proud to welcome Dr. Okonjo-Iweala as a Senior Advisor to our world-leading sovereign advisory group. She will bring a unique international expertise and experience that will benefit both our sovereign and corporate clients,” he said.
In her reaction to the two appointments, the former Minister, who would be based in Paris, Geneva and London said: “I am excited to be embarking on this fresh journey. The two appointments will enable me to continue doing what I know best – rendering public service and using my financial and economist skills. I thank the international community for the recognition and continued support. I am also grateful for the prayers and support of many Nigerians”.
FG declares 24th & 25th of September as Public holiday for Sallah Celebration
Eld-el-Kabir to our muslim brethren.
Federal government has declared Thursday September 24th and Friday September 25th as public holidays to mark this year's Id-El-Kabir celebration. The public holiday declaration was contained in a statement released yesterday by the Director of Press, Ministry of Interior, Yusuf Isiaka Alhaji on behalf of the Ministry's Permanent Secretary Abubakar Magaji.
Federal government has declared Thursday September 24th and Friday September 25th as public holidays to mark this year's Id-El-Kabir celebration. The public holiday declaration was contained in a statement released yesterday by the Director of Press, Ministry of Interior, Yusuf Isiaka Alhaji on behalf of the Ministry's Permanent Secretary Abubakar Magaji.
Oil & Gas sector attracted N2.9bn foreign investment
The Nigerian oil and gas sector attracted $14.34 million, about N2.87 billion worth foreign investments in the first half of 2015, the National Bureau of Statistics, NBS revealed.
The NBS in its Nigerian Capital Importation report for Second Quarter, Q2, 2015, said this is an appreciation of 347.36 per cent or $11.133 million or N2.23 billion increase from the $3.205 million (N641 million) recorded in the sector in the second half of 2014.
The amount is however 93 per cent lower than the $204.97 million (N40.99 billion) year on year in 2014, just as there was a sharp decline in Quarter 2 2015.
According to the report, capital importation into the sector in Q2 2015 stood at $4.86 million, down 48.65 per cent or $4.609 million (N921.8 million) from the $9.473 million (N1.89 billion) realised in Q1 2015.
Analysts at Cardinal Stone Partners, had in their economic outlook for 2015, predicted that the Nigerian oil and gas sector will be constrained by under-investment and capital flight as a result of the declining oil prices.
The analysts noted that the low oil price brought about a number of negative consequences, putting the naira under pressure due to rapid capital flight, which triggered scepticism among foreign investors due to concerns about the implications of declining oil prices for Nigeria, an oil-dependent country.
Also, analysts at PriceWaterHouseCoopers in their economic analysis for Nigeria and Africa, declared that areas where limited infrastructure is currently in place are also likely to suffer due to the paucity of investment inflow into the sector.
The analysts said: “This is because external investment is needed to develop the requisite infrastructure – investment that will be difficult to procure to produce a commodity that is currently losing in value. In these areas, development of existing discoveries may end up on ice unless there is a domestic need for the resource.”
Economic uncertainty: Continuing, the NBS noted that at $2.666 billion, the value of capital imported into Nigeria in Q2 2015 is a marginal drop of $5.24 million or just 0.20 per cent quarter on quarter.
“Capital importation thus remained relatively unchanged from the $2.67 billion recorded in the opening quarter of 2015, suggesting that this new lower level will be maintained as long as an uncertain economic environment remains.“Year on year, second quarter capital imported was $3.137 billion or 54.06 per cent lower than the $5.803 billion imported in quarter two of 2014,” the report said.
Broken further the NBS said portfolio investment remained the largest of all investment types, totaling $2.183 billion in Q2 2015 or 81.88 per cent of all capital imported. This is $322.50 million or 17.33 per cent higher than the $1.861 billion recorded in Q1 2015, which was 69.65 per cent of the total.
However, the report said year on year the decline remained large at $2.734 billion or 55.60 per cent.
The report said: “Within portfolio investment, the key driver of the quarterly growth observed was Equity, which at 84.56 per cent of portfolio investment, increased by $706.70 million or 62.02 per cent from the preceding quarter.”
As reported by Vanguard
For the last quarter,Shareholders predict drop in Stock market performance
As we move towards the last quarter of the year, investors have been advised to be careful of the stocks they buy from the stock market. Speculations are that,there would be a further drop on stock prices as posed by festive period, and at that investors are advised to be cautious of their purchases.
Godwin Anono, President, Standard Shareholders Association stated that "The foreign investors are still looking at Nigeria, they don’t know which way Nigeria is going as the Federal Government intensifies its drive to recover ill-gotten money. This is a step in the right direction and I believe it will have an aeffect on the market.Investors are not sure of how the market would be in the fourth quarter. This is because Christmas is few month ahead and people will want to save for Christmas and to pay school-fees. So, I am not sure because this time around, the purchasing power of individuals in Nigeria is very low. So, nobody wants to buy shares, but this is the time that is good for somebody that has money somewhere to buy shares and make better returns in the future . For the last quarter of the year, I am not sure that the the market will pick up.Once the Federal Government government has put policy measure in place, then the market will start moving forward but for now, no way. The market cannot move when there are no policy direction for finance sector .Foreign investors who are scared before will now hold on to their money and watch Nigeria from a distance. It is when all these fundamentals are properly in place that foreign investors will start coming and then others will start moving on. Any company that wants to do a Rights Issue now or a public offer or private placement should beware."
Wednesday, 16 September 2015
Consultants won’t collect taxes for FIRS-Tunde Fowler
FCMB emerged as the most customer friendly Bank
First City Monument Bank (FCMB)emerged the “Most Customer Friendly Bank” in the country, at the prestigious annual BusinessDay Bankers Awards.
The bank was voted after a rigorous process where several parameters were considered by the award team.The bank during the citation was said to have also resolved the highest number of customers’ complaints, relative to total complaints recorded in the 2014 financial year.
In a release by the BusinessDay group, the award was introduced in 2013, by the nation’s premier financial newspaper to reward excellence, achievements and recognize
contributions made in the banking industry, and ultimately the nation’s economy.
The publication further opined that “since its introduction, it has engendered a healthy competition among deposit money banks in Nigeria, with a view to promoting the development of the banking sector in Africa’s largest economy”.
Reacting on the awards, Mr. Adam Nuru, Executive Director, Business Development, FCMB, who represented the Group Managing Director/CEO, FCMB, Mr Ladi Balogun, at the event said “we are happy to have come tops in the Most Customer Friendly Bank Category of the awards by the BusinessDay Group, which is a very credible and highly respected professional organisation. It is a confirmation of our unequalled commitment in offering exceptional quality service to our teeming customers and the Nigerian public”.
Bizblog term of the day:EPS (Earnings per share)
The term earnings per share (EPS) represents the portion of a company's earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock.
For a Group of companies,it is a consolidated net income after tax after deducting non-controlling interest and preference share dividend divided by number of ordinary shares ranking for dividend.
The formular goes thus;
For a single entity: Net income/Number of shares ranking for dividend
For a Group: Profit after tax -preference share dividend-Non-contolling interest/Number of ordinary shares ranking for dividend.
The figure can be calculated simply by dividing net income earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used.
How it works/Example:
Take for example, Company XYZ reported net income of N4 million. During the same time frame, the company had a total of 10 million shares outstanding. In this particular case, the company's earnings per share (or EPS) would be N0.40, calculated as follows:
N4 million / 10 million shares = N0.40k
Take for example 2,
Zplc with an issued share capital 7m ordinary shares of N1 each as at 1st Jan 2015 issued additional 5m shares for cash on 30th Sep 2015. The earnings for the period was N6m. The EPS for 2015 is N72.73k. As calculated below;
EPS= PAT-preference share dividend/No of ordinary shares ranking for dividend
Where Number of Ordinary shares ranking for dividend is given below;
1/1/2015-30/9/2015 =9/12*7m shares= 5,250,000 shares
1/10/2015-31/12/2015=3/12*12m shares= 3,000,000shares
8,250,000shares
EPS= N6,000,000/8,250,000shares
= N72.73k
Tuesday, 15 September 2015
Smile Diversifies, Plans Voice Telephony Service Offering in October
Following the recent raising of $365 million (N87.6 billion) of debt and equity financing from local and foreign banks, and from its shareholders, for its network expansion across its three operations in Africa, which include Nigeria, Smile Communications, a broadband company, has announced its intention to begin voice telephony business in Nigeria next month.
Chairman of Smile Communications Nigeria Limited, Dr. Ernest Azudialu-Obiejesi, who disclosed this during an interview session with THISDAY in Lagos recently, said 80 percent of the $365 million debt and equity financing, which amount to N70.08 billion, would be spent on Smile's operation in Nigeria for network and services product expansion, while the remaining 20 per cent, which amounts to N17.52 billion, would be spent on its other African operations, because of the large size of its business in Nigeria.
"With N70.08 billion investment in the Nigeria operations, we will be able to finance our new project of voice telephony and expand our existing data communication service offerings in Nigeria," Azudialu-Obiejesi said.
The funding would be used to expand Smile’s existing 4G LTE networks and services, such that, by the end of 2015, Smile will offer clear voice services, in addition to mobile broadband, and will have national coverage comparable to that of the largest 3G network in each of its current countries of operation, Azudialu-Obiejesi added.
According to him, "The 4G LTE technology, which we operate in the 800MHz frequency is very powerful and can penetrate buildings and walls with high speed connectivity, which guarantees the opportunity for Nigerians to enjoy clear voice telecommunication service that we will be offering from next month."
For us, this money is the key for the expansion of our existing data business and for the development of our new service offering in voice telephony. Nigerians will enjoy clearer voice quality with Smile voice telephony because the 4G LTE technology we are deploying in Nigeria, is superior to the 4G LTE technology in London and America, in terms of speed, voice clarity and connectivity, even though it is the same technology, Azudialu-Obiejesi,
Asked if Smile intends to compete with the likes of MTN, Globacom, Airtel and Etisalat in voice telephony, Azudialu-Obiejesi said "we are not rolling out voice telephony to compete market share with existing core telecoms operators, because voice is not our core business, but since we have the broadband capacity as a result of our 4G LTE technology, we decided to venture into voice, in addition to our core data communication service, to enable us provide total communications solution to our customers and allow them enjoy the benefits of 4G LTE technology deployment. What we are trying to do is to use some of our free network within the broadband space to provide voice over."
Last week, Smile Communications announced that its parent company, Smile Telecoms Holdings Ltd (Smile), which owns and operates mobile wireless 4G LTE broadband networks in the 800MHz band in Nigeria, Tanzania and Uganda, has raised $365 million (N87.6 billion) of debt and equity financing for its network expansion across its three operations in Africa, which includes Nigeria.
The funding is comprised of $50 million of equity, raised from the Public Investment Corporation on behalf of Government Employees Pension Fund (PIC), and a $315 million multi-tranche, multi-jurisdictional debt facility led by Africa Export-Import Bank with participation from the Development Bank of Southern Africa, Diamond Bank PLC, Ecobank Nigeria, the PIC, the Industrial Development Corporation of South Africa Limited and Standard Chartered Bank.
JNI declares Wednesday Eid-el-Kabir Sallah day
To our muslim brethren,Guess the rams has started their counting down 'lol'
The Jama’atu Nasril Islam, the umbrella body of Islamic groups in Nigeria, has declared that the month of Dhul Hajj which started yesterday (Monday) implies that Eid-el-Kabir Sallah would be observed on Wednesday, September 23.
The JNI, led by the Sultan of Sokoto, Abubakar Sa’ad, stated this in a statement on Sunday.
The statement signed by its secretary general, Khalid Aliyu, said the Sultan and the JNI “felicitates with the Nigerian Muslim Ummah over the successful commencement of Dhul-Hajj today Monday 14th September, 2015. This is indeed gratifying as Wednesday 23rd September 2015 will mark this year’s Eid-el-Kabir, In-Shaa-Allah”.
The Jama’atu Nasril Islam, the umbrella body of Islamic groups in Nigeria, has declared that the month of Dhul Hajj which started yesterday (Monday) implies that Eid-el-Kabir Sallah would be observed on Wednesday, September 23.
The JNI, led by the Sultan of Sokoto, Abubakar Sa’ad, stated this in a statement on Sunday.
The statement signed by its secretary general, Khalid Aliyu, said the Sultan and the JNI “felicitates with the Nigerian Muslim Ummah over the successful commencement of Dhul-Hajj today Monday 14th September, 2015. This is indeed gratifying as Wednesday 23rd September 2015 will mark this year’s Eid-el-Kabir, In-Shaa-Allah”.
Monday, 14 September 2015
National bureau of statistics reported a 9.3% rise in Inflation
The Nation's Consumer Price Index which measures inflation rose again in August to 9.3 per cent, an increase of 0.1 per cent over the July figure, staying above the Central Bank of Nigeria's target upper limit, the National Bureau of Statistics said in its monthly report on Sunday.
Food inflation rose marginally to 10.1 per cent year-on-year in August versus 10.0 per cent in July.
"The marginal increase was as a result of slower increases in alcoholic beverages, tobacco and kola, health, transport and recreation and culture divisions," the NBS said.
The Nation's inflation rate rose above the central bank's upper limit of nine per cent in June and is at the highest level since February 2013.
On a month-on-month basis, the pace of increases of food prices as reflected by the food sub-index has slowed, contributing to the relatively slower pace of increases reflected on the year-on-year rates between July and August, NBS said.
In August, food prices increased at a marginally higher pace relative to July, NBS said. It added that food prices increased by 10.1 per cent as prices of fruits, vegetables; and potatoes, yams and other tubers groups grew at a slower pace and weighed on the index.
The report also said that on the average, consumers across the country paid N104.48 for a litre of Premium Motor Spirit popularly known as petrol in the month of August.
The statistics showed that despite the regulation and subsidy on petroleum products by the Federal Government, fuel still sells higher than the official price of N87 per litre across the country.
However, comparative statistics showed that the average price of N104.48 is the least consumers paid for PMS across the country in the last four months, May to August.
President Muhammadu Buhari has steered the ship of state since May 29. The average monthly price has been declining since then.
In the month of May, the average price of PMS was put at N118.36 per litre. This declined to N112.13 in June; N107.35 in the month of July and N104.48 in the month of August.
In the months before May, petrol sold for N103.65 per litre in the month of January; N93 per litre in the month of February; N103.85 per litre in the month of March and N104.13 per litre in the month of April.
At N88.13 per litre, consumers in Oyo State paid the least for petrol in the month of August. This shows that the price of the product declined in the state from the price of N99.16 in the month of July.
Ironically, consumers in Bayelsa State which is one of the major oil-producing states of the country paid the highest price of N132.43 per litre in the month of August. Consumers in the state had paid an average price of N 152.86 per litre in the month of July and N155 per litre in the month of June.
In Rivers State, on the average, petrol sold for N100.33, N110.57, N113.38, and N99.71 per litre in the months of May, June, July and August respectively.
The statistics reported the average monthly prices actually paid by households for PMS across the 36 states of the federation and the Federal Capital Territory.
Culled from PUNCH
PenCom Cautions Contributors against huge withdrawals
The National Pension Commission (PenCom) has advised contributors into the contributory pension scheme (CPS) to avoid the habit of demanding a huge payment from their Retirement Savings Account (RSA).
The commission, which gave the advice at the Annual General Meeting of the National Association of Insurance and Pension Correspondents (NAIPCO) held in Lagos, said such action could have a significant impact on their retirement savings, thereby reducing what they could be taking home on monthly basis.
Head, Research &Corporate Strategy Department of the Commission, Mr. Umaru Farouk Aminu, who gave the advice expressed the regret that perhaps due to ignorance, most contributors often demand for huge sum of initial payment adding that when such is granted, it reduced their monthly pay which has seen many of them grumbling.
Advising contributors against this, Aminu said: "As a contributor to the Scheme, when you retire, you don’t have to take a huge initial lump sum from your Retirement Savings Account, RSA.
Accordingly, you are advised to take less lump sum except if there is need to do otherwise, because the less lump sum you take, the more money you get as monthly retirement benefit.”
He insisted that retirees should take less lump sum payout if they don’t have need for it, adding that less lump-sum will help them keep more money in the Retirement Savings Account (RSA).
The commission, which gave the advice at the Annual General Meeting of the National Association of Insurance and Pension Correspondents (NAIPCO) held in Lagos, said such action could have a significant impact on their retirement savings, thereby reducing what they could be taking home on monthly basis.
Head, Research &Corporate Strategy Department of the Commission, Mr. Umaru Farouk Aminu, who gave the advice expressed the regret that perhaps due to ignorance, most contributors often demand for huge sum of initial payment adding that when such is granted, it reduced their monthly pay which has seen many of them grumbling.
Advising contributors against this, Aminu said: "As a contributor to the Scheme, when you retire, you don’t have to take a huge initial lump sum from your Retirement Savings Account, RSA.
Accordingly, you are advised to take less lump sum except if there is need to do otherwise, because the less lump sum you take, the more money you get as monthly retirement benefit.”
He insisted that retirees should take less lump sum payout if they don’t have need for it, adding that less lump-sum will help them keep more money in the Retirement Savings Account (RSA).
50,000 Companies to be taken off from CAC Register
The Corporate Affairs Commission (CAC) last week Wednesday said that 50,000 companies would soon be delisted for failing to file their annual returns.
The Registrar General of the CAC, Mr. Bello Mahmud, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja.
Mahmud said "The defaulters would be de-listed after due notification through different channels of communication as prescribed by law.He disclosed that 9,347 companies had so far been delisted by the commission since inception for failing to file their annual returns,623,659 out of a total of over 1.2 million registered companies in the country had not filed their annual returns.He said that the 623,659 companies, which represent 49 per cent of the total number, were those that have not filed a single return since their registration.He said that others were those in partial default of between two and four years, but he did not specify the number in this category".
The law requires every registered company to file its first annual return 18 months after registration, and not later than 42 days after holding its annual general meeting for the year.
CAC currently charges between N1000 and N5000 as filing fees for annual returns, depending on the size of the company, while default attracts a penalty fee of N100 per day.
Mahmud said "The defaulters would be de-listed after due notification through different channels of communication as prescribed by law.He disclosed that 9,347 companies had so far been delisted by the commission since inception for failing to file their annual returns,623,659 out of a total of over 1.2 million registered companies in the country had not filed their annual returns.He said that the 623,659 companies, which represent 49 per cent of the total number, were those that have not filed a single return since their registration.He said that others were those in partial default of between two and four years, but he did not specify the number in this category".
The law requires every registered company to file its first annual return 18 months after registration, and not later than 42 days after holding its annual general meeting for the year.
CAC currently charges between N1000 and N5000 as filing fees for annual returns, depending on the size of the company, while default attracts a penalty fee of N100 per day.
Pension Fund Administrators Pay Retirees N3.4bn Monthly
Pension Fund Administrators in Nigeria (PFAs) pay a total of N3.4 billion to retirees monthly under the programme withdrawal system of Retirement Benefit payment while insurers pay a total of N917 million under the Annuity system, National Pension Commssion (PenCom) said in a statement as reported by THISDAY.
The Pension Fund Operators Association of Nigeria (PenOp) has urged workers to embrace the contributory Pension Scheme (CPS), insisting that the scheme remains one of the best things to have been bequeathed on workers who deserved comfortable lifestyle at retirement.
The Pension Fund Operators Association of Nigeria (PenOp) has urged workers to embrace the contributory Pension Scheme (CPS), insisting that the scheme remains one of the best things to have been bequeathed on workers who deserved comfortable lifestyle at retirement.
47 Corporate Bodies for SERA Awards
Organisers of the annual Nigeria CSR awards otherwise known as The SERAs said they have received a total of forty-seven entries from participating organisations for the 2015 Awards.
According to a statement issued in Lagos, entries were received from ExxonMobil, Nigerian Breweries, Lafarge, Total, Cornerstone Insurance, Etisalat, BATN, Airtel, DHL, Nigerian Stock Exchange, FCMB, Promasidor, First Bank amongst others.
The award, which is considered in some quarters as the nation’s top CSR and sustainability honour is in its 9th edition. The awards process is designed to integrate principles and framework of the Global compact, global reporting Initiative.
The theme of the 2015 awards is – Building partnerships for a sustainable future; business leadership as a catalyst for development. This seek to highlight the lessons learned from Nigeria’s inability to completely attain the millennium development goals targets and building on the lessons of the MDG’s to begin a move towards attaining the sustainability development goals (SDG’s),
Insurance Firms Partner with Private Hospitals
A conglomerate of fifteen insurance firms has formed a strong synergy with over 10,000 private hospitals in Nigeria to sign a memorandum of understanding with a non-governmental organisation (NGO), Eagle Search and Rescue Foundation on management of accident and emergency victims in Nigeria.
The major objective of the project is to render emergency rescue assistance to accident victims by providing first aid medical treatments and transmitting information such as state of health, location and immediate requirements of such victims to their next-of-kin.
Speaking at the signing event in Lagos, Group Coordinator/Visioner of Eagle Search and Rescue Foundation, Mr. Sunday Olu Ajanaku said the foundation is already functional in 30 states of the federation including the Federal Capital Territory where there is presence of the Association of General and Private Medical Practitioners of Nigeria, (AGPMPN) for prompt medical treatment of all accident victims.
Wednesday, 9 September 2015
Sahara Group Plans $600m IPO(Initial public offering)
Nigeria’s Oil and Gas Company Sahara Group, has revealed that it plans to raise as much as $1.4 billion through a dual listing of its oil and gas unit in London and Lagos along with a debut dollar bond sale. According to Bloomberg, the company needs the money to buy oil blocs in Nigeria as it seeks to ramp up production five-fold to 60,000 barrels a day, said Executive Director Tonye Cole.
Sahara is seeking as much as $600 million in the initial public offering, which may take place within a year, and $800 million through a seven-year bond that should be issued by the end of October.
According to Tonye Cole
“Over the next five years, our target is to be one of the largest indigenous producers in Nigeria, A lot is dependent on the IPO. We started down that road before oil prices collapsed, but we’re still focused on it.”
“We’re looking to raise somewhere between $500 million to $600 million for about 20 to 25 percent of the shares,”
Bloomberg also quotes Tonye Cole as saying that this amount basically values the company at between $2 billion and $3 billion.
Sahara Group is said to own Rak Unity, an oil and gas company listed on the floor of the Nigerian Stock Exchange. Some analysts opine that this may be the vehicle that will be used for the IPO. Sahara Group is also said to own 100% equity in Nigeria’s largest Power Plant, Egbin Power Plant and also bought majority shares in the recently privatised Ikeja Distribution Company also Nigeria’s largest power distribution company.
Sahara Group is known for its ‘crude for product swaps’ in Nigeria. It basically buys crude from the NNPC, processes it at regional refineries such as in Ivory Coast and then sells the products back to Africa’s most populous nation. The Oil Swaps have been laden with controversies in recent past and have been suspended by the current Governm
Sahara is seeking as much as $600 million in the initial public offering, which may take place within a year, and $800 million through a seven-year bond that should be issued by the end of October.
According to Tonye Cole
“Over the next five years, our target is to be one of the largest indigenous producers in Nigeria, A lot is dependent on the IPO. We started down that road before oil prices collapsed, but we’re still focused on it.”
“We’re looking to raise somewhere between $500 million to $600 million for about 20 to 25 percent of the shares,”
Bloomberg also quotes Tonye Cole as saying that this amount basically values the company at between $2 billion and $3 billion.
Sahara Group is said to own Rak Unity, an oil and gas company listed on the floor of the Nigerian Stock Exchange. Some analysts opine that this may be the vehicle that will be used for the IPO. Sahara Group is also said to own 100% equity in Nigeria’s largest Power Plant, Egbin Power Plant and also bought majority shares in the recently privatised Ikeja Distribution Company also Nigeria’s largest power distribution company.
Sahara Group is known for its ‘crude for product swaps’ in Nigeria. It basically buys crude from the NNPC, processes it at regional refineries such as in Ivory Coast and then sells the products back to Africa’s most populous nation. The Oil Swaps have been laden with controversies in recent past and have been suspended by the current Governm
Enterprise bank now officially Heritage bank
I logged on to my enterprise bank Internet banking page to carry out some transactions only to be redirected to a new page carrying heritage bank view and I was like 'Alright,away from Enterprise to Heritage bank' .
So guys,don't be astonished when you get to experience same.Keep calm because Heritage bank has taken over.
So guys,don't be astonished when you get to experience same.Keep calm because Heritage bank has taken over.
Tuesday, 8 September 2015
New FIRS Chairman(Tunde Fowler) to come hard on Tax evaders
In his quest to increase the nation's tax revenue,the new Federal inland revenue service(FIRS),Mr Tunde fowler unleashed main areas that his administration will focus on.
Click to continue;
Mrs Ibukun Awosika bags new appointment with First bank amongst others
FBN Holdings Plc Parent company to First bank plc Monday evening announced major changes in its leadership team to take effect from 1st of January 2016 as approved by the board of the company.
Mrs Ibukun Awosika to replace the current Chairman Prince Ajibola Afonja.
Dr Adesola Adedutan currently First Bank Executive Director, CFO has emerged Managing Director Designate
Mr Gbenga Shobo current Executive Director Lagos West is now Deputy Managing Director designate.
Current Group CEO Bello Maccido is now Chairman of the newly licensed FBN Merchant Bank Ltd
Mr UK Eke current Executive Director South First Bank Plc is now Managing Director FBN Holdings
Mrs Ibukun Awosika to replace the current Chairman Prince Ajibola Afonja.
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| Mrs Ibukun Awosika |
Dr Adesola Adedutan currently First Bank Executive Director, CFO has emerged Managing Director Designate
Mr Gbenga Shobo current Executive Director Lagos West is now Deputy Managing Director designate.
Current Group CEO Bello Maccido is now Chairman of the newly licensed FBN Merchant Bank Ltd
Mr UK Eke current Executive Director South First Bank Plc is now Managing Director FBN Holdings
Monday, 7 September 2015
Newly appointed Executive directors of Fidelity bank
Fidelity Bank Plc notified The Nigerian Stock Exchange of the appointment of Mr. Adeyeye Olawale Adepegba and Mrs Nneka Chinwe Onyeali-Ikpe as Executive Directors.
Mr. Adeyeye Adepegba holds a Bachelor’s degree in History and Masters in Industrial Labour Relations, both from the University of Ibadan. He also holds a Masters Degree in Business Administration from Lancaster University of Management School, Lancaster University, United Kingdom. He is banker with over 26 years post qualification experience which spans through operations, private, commercial and corporate banking. Mr. Adepegba joined Fidelity Bank Plc in 2006 after working previously with Equitorial Trust Bank (1995 – 2000), Ecobank Nigeria (June 2000 – August 2006) and First City Monument Bank Plc (August 2006 – October 2006). He was the Group Head Power & Infrastructure Corporate Banking Division from 2007 to 2015 before this appointment. Mr. Adepegba will serve as the Executive Director, Corporate Bank.
Mrs. Nneka Chinwe Onyeali-Ikpe holds a Bachelor of Laws (LL.B Hons.) from University of Nigeria, Nsukka in 1984 and Barrister at Law (BL) degree from the Nigerian Law School in 1986. She is also a graduate of the Kings College, London where she obtained Masters in Law (LLM). Mrs. Onyeali-Ikpe has over 19 years’ experience and has served with Commercial Trust Bank, Citizens Bank, Zenith International Bank Plc etc. She was the Regional Manager of Standard Chartered Bank from 2007 – 2011, supervising Lagos Island Regions and the Executive Director Enterprise Bank before joining Fidelity Bank Plc in 2015 as an Executive Director, Lagos and South West Directorate.
Mr. Adeyeye Adepegba holds a Bachelor’s degree in History and Masters in Industrial Labour Relations, both from the University of Ibadan. He also holds a Masters Degree in Business Administration from Lancaster University of Management School, Lancaster University, United Kingdom. He is banker with over 26 years post qualification experience which spans through operations, private, commercial and corporate banking. Mr. Adepegba joined Fidelity Bank Plc in 2006 after working previously with Equitorial Trust Bank (1995 – 2000), Ecobank Nigeria (June 2000 – August 2006) and First City Monument Bank Plc (August 2006 – October 2006). He was the Group Head Power & Infrastructure Corporate Banking Division from 2007 to 2015 before this appointment. Mr. Adepegba will serve as the Executive Director, Corporate Bank.
Mrs. Nneka Chinwe Onyeali-Ikpe holds a Bachelor of Laws (LL.B Hons.) from University of Nigeria, Nsukka in 1984 and Barrister at Law (BL) degree from the Nigerian Law School in 1986. She is also a graduate of the Kings College, London where she obtained Masters in Law (LLM). Mrs. Onyeali-Ikpe has over 19 years’ experience and has served with Commercial Trust Bank, Citizens Bank, Zenith International Bank Plc etc. She was the Regional Manager of Standard Chartered Bank from 2007 – 2011, supervising Lagos Island Regions and the Executive Director Enterprise Bank before joining Fidelity Bank Plc in 2015 as an Executive Director, Lagos and South West Directorate.
Nigeria to host world pension summit
The Director-General, National Pension Commission (PenCom), Mrs Chinelo Anohu-Amazu, said on Friday that Nigeria is ready to host the second edition of the World Pension Summit-Africa in Abuja scheduled for Oct. 5 and Oct. 6 at the Transcorp Hilton Hotel, Abuja, with the theme “Building Sustainable Pension Systems in Africa”.
The director-general explained that the successes recorded by Nigeria in pension administration since the inception of the new system gave the country the lead in Africa.