Investors Lose N32.26bn as NGXASI Dips by 0.15%, to Open the Week Negative

Equities market closed on a negative note, as NGXASI depreciated by -0.15% to close at 41,976.79 basis points as against +0.18% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at +4.24%.         

Market breadth closed negative as FIDSON led 20 Gainers as against 29 Losers topped by ETERNA at the end of today’s session – an unimproved performance when compared with previous outlook.    

Market turnover closes negative as volume moved down by -66.53% as against +102.14% uptick recorded in the previous session. MBENEFIT, UBA and FBNH were the most active to boost market turnover.  ZENITHBANK and FBNH topped market value list.

FIDSON leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

Frustration grows as lack of jobs rack Nigerians

Nigeria’s unemployment crisis, the worst since the country’s transition to democracy in 1999, is unrelenting and waging a continuous war on the people. Some 23 million Nigerians are unemployed, according to the National Bureau of Statistics (NBS)

Nigeria’s SEC says to intensify monitoring, surveillance of capital market operators

The Securities and Exchange Commission (SEC) has resolved to intensify monitoring and surveillance of Nigeria’s capital market and has vowed to apply stiff sanctions to any capital market operator (CMO) who engages in unethical conduct.

Nigerians groaning under galloping staple food prices

Less than two years to the next round of the Nigerian general election, citizens are lamenting intense pressure of poverty and high cost of living. Six years after a change of government, promises of a better life for the people have remained a pipe dream.

Nigeria PMI back below water as FX, insecurity dampens manufacturers’ outlook

Nigeria’s manufacturing Purchasing Managers’ Index (PMI), a gauge for manufacturing sentiments, declined by 0.7points in October on FX volatility and social unrest in the eastern and northern parts of the country

CBN begins selection of companies for its 100 for 100 PPP

The Central Bank of Nigeria (CBN) on Monday announced the commencement of selecting high-impact companies and projects under its 100 for 100 Policy on Production and Productivity (PPP). An advertorial statement by the banking sector regulator stated that the selection criteria for participation

Worsening US-China ties, sudden monetary tightening, emergence of vaccine resistant Covid strain top risks for 2022

The Economist Intelligence Unit, EIU says it expects the post-pandemic economic recovery to continue well into 2022 and while global GDP could expand by as much as four per cent, there will be wild variations in the pace of recovery across the different regions of the world. In their report setting out 10 scenarios..

Apple loses shine as Microsoft becomes most valuable company in the world

Apple lost its crown as the world’s most valuable public company to Microsoft on Friday, as the iPhone maker’s shares continued their downward slide. Apple took a $6bn hit to its sales during the fiscal fourth quarter due to a nagging global supply-chain problem, leading to a miss on Wall Street expectations

Guinness Nigeria Declares N1bn Dividend, Reassures Shareholders of Continued Profitability

Shareholders of Guinness Nigeria Plc have approved the N1.008billion dividend declared and recommended by the Board of the Company at the 71st Annual General Meeting held in Lagos, as the Company recorded a 54% increase in revenue for the year ended June 30, 2021.

Appreciating the support of the shareholders, the Chair, Board of Directors, Guinness Nigeria Plc, Dr. Omobola Johnson maintained that the Company will keep up with its growth strategy to continue on its path of profitability.  

“We are confident that our strategy is comprehensive and robust. We are keen on making the right investments that will drive growth across board and ensure our competitiveness, despite the challenging business environment. We thank our shareholders for their confidence in the Board and Management of our dear company and we are committed to ensure that we sustain the momentum” Dr. Johnson said.

Johnson further explained that at the heart of Guinness’ success is innovation. “As a company, we keep tasking ourselves regarding innovation and how best to satisfy our consumers with our innovative products. An example is the recent launch of Orijin Tigernut and Ginger; an exciting new variant of the Orijin brand to expand profitability for the brand, while catering to a younger, vibrant demography of consumers. As the only Total Beverage Alcohol Company in Nigeria, we are proud of the legacies of our iconic brands and we hope to keep on turning out products that will make our consumers happy and satisfied”.

“We are also glad that our promise to you last year is being fulfilled as we have been able to implement our strategies and improve on revenue projections as manifested in our financial results. The Board will continue to support the Management in its efforts to sustain global best practices aimed at consistently delivering business growth for stakeholders”, she said.

Managing Director, Guinness Nigeria Plc, Mr. Baker Magunda, expressed his confidence in the company’s outlook for the future emphasizing that some key strategic decisions of the company in the last year increases the chances of the company’s journey to sustained profitability.

“The performance of fiscal year 2021 showed that the business delivered growth despite the challenging external environment characterized by COVID-19 restrictions and high inflation. Our strategic objectives will continue to ensure we leverage local opportunities, create value and empowerment through local sourcing, while taking opportunities that will grow revenue and protect our margins”. He added. 

Reacting on behalf of the shareholders as a proxy, the National Chairman, New Dimension Shareholders Association of Nigeria Patrick Ajudua noted that the financials for the year has shown a new dimension, growth and that Guinness is being repositioned from a huge negative loss to a profit in their bottom time.

“We hope that it will be sustained overtime, going by the fact that we have a lot of problems in the economy and the Covid-19, our expectations are very high and from what we have heard from the management, they are equal to the task of meeting the expectations of the stakeholders” Ajudua noted.

Barrister Adetutu shiobola who represented the Highly Favoured Shareholders Association as a proxy also expressed satisfaction with the management’s stellar performance, noting that the company was moving from a loss to a profit this year, from negative to positive accounts. “Though the dividend declared is a kobo dividend but I’m happy for that unlike last year, nothing was declared. I’m happy to see that we are making some progress”.  

As part of its social responsibility, Guinness Nigeria continues to contribute its quota to the socio-economic development of the country through various initiatives such as Undergraduate scholarships, youth and women empowerment programs. The company continues to be a trailblazer in championing Inclusion and Diversity. 

Table:  Q1 2022 Unaudited Results

AELEX Petroleum Industry Act Articles Series: Funds Created Under The PIA (Part 1)

The President of Nigeria recently signed the Petroleum Industry Act (“PIA”) into law, putting an end to several years of uncertainties and promises to reform and modernise the regulatory framework for the petroleum industry in Nigeria. 

NIPOST and FIRS Dispute Over Stamp Duty Collection: and End in Sight

 The Nigerian Postal Service (NIPOST) and the Federal Inland Revenue Service (FIRS) have been locked in a controversy regarding which of the agencies is charged with the responsibility to collect stamp duties on receipts. 

The End of a Remarkable Rally in Energy Prices – OIR 291021

 The recent remarkable energy rally calmed down this week, with gas, coal, and oil prices all posting a weekly loss. In the case of crude, it was the first weekly decline in two months. Whilst oil companies were buoyed by an overwhelmingly positive string of Q3 results.

New Revenue Sharing Formula’ll Meet Nigerians’ Aspirations – RMAFC

 The Revenue Mobilisation Allocation and Fiscal Commission has said it will unveil a new revenue allocation formula for the federal, state and local governments before the end of this year. This is coming years after the revenue sharing formula was reviewed. 

Zenith Bank Remains Resilient as Profit Before Tax Rises to N180Billion in Q3 2021

As a testament to its resilience and market leadership, Zenith Bank Plc has announced its unaudited results for the nine months period ended 30 September 2021 with a Profit Before Tax (PBT) of NGN180 billion, reflecting a 1% growth over the NGN177 billion recorded in the same period in the previous year amidst a challenging macroeconomic environment exacerbated by the Coronavirus (COVID-19) pandemic.

According to the Group’s unaudited nine months financial results presented to the Nigerian Exchange (NGX), gross earnings increased by 2% from NGN509 billion to NGN519 billion largely due to growth in current account maintenance fees as well as fees from electronic products during the period.

Despite continuing economic uncertainties, the Group grew its net earnings through a reduction in the cost of funds while keeping the cost of risk flat—this strengthened Earnings Per Share (EPS) by 1% to NGN5.11. The Group achieved a 9% growth in interest income from loans and advances on the back of an increase in gross loans of 9% year to date and enhanced efficiency, resulting in a 21% drop in interest expense to NGN74 billion from NGN94 billion. This culminated in growth in net interest income of 4%, from NGN225 billion recorded at the end of Q3 2020 to NGN235 billion in the current period.

Total assets also increased by 3% to NGN8.8 trillion in the current period, while total deposits grew by 13% to close at NGN6.0 trillion from NGN5.3 trillion as at 31 December 2020, with a substantial contribution from retail deposits.

As a result of the focused drive to increase retail deposits in the past three years, there was a decrease in The Group’s cost of funds by 35% to 1.4% from 2.2% year-on-year. The Group continues to make significant progress in its retail banking drive, as evidenced by remarkable growth in transaction volumes and value across its digital platforms and strong growth in customer acquisition.

For the year’s final quarter, management’s outlook remains positive, buoyed by a declining inflationary trend, expected increase in foreign exchange inflows, and improving oil production. The Group remains focused on increasing its retail market share, consolidating its leadership position in the corporate segment and maintaining a robust balance sheet.

In recognition of its track record of excellent performance, Zenith Bank was voted as Best Commercial Bank in Nigeria in the World Finance Banking Awards 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and 2021, and Best in Corporate Governance ‘Financial Services’ Africa 2020 and 2021 by the Ethical Boardroom. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Number One Bank in Nigeria by Tier-1 Capital in the “2021 Top 1000 World Banks” Ranking by The Banker Magazine. In 2020, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Retail Bank of the year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise, and Responsibility (SERAS) Awards.

For over three decades, Zenith Bank has distinguished itself in the Nigerian financial services industry through superior service offerings, unique customer experience, and sound economic indices. The Bank remains a clear leader in the digital space with several firsts in deploying innovative products, solutions, and an assortment of alternative channels that ensure convenience, speed, and safety of transactions.