Akeem ReachnaijaNovember 13, 2018


Following price losses suffered by most blue-chip stocks, transactions on the equity sector of the Nigerian Stock Exchange (NSE) closed on a downturn yesterday, as the All-share index depreciated by 0.18 per cent.

Specifically, at the close of transactions yesterday, the All -share index (ASI) was down by 56.80 absolute points, representing a decline of 0.18 percent, to close at 32,143.41 points. Similarly, the market capitalisation decreased by N21 billion, to close at N11.735 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Guaranty Trust Bank, Zenith Bank, NEM Insurance, Diamond Bank and Abbey Mortgage Bank.

Analysts at United Capital Plc said: “With the culmination of the third quarter, 2018 earnings season, we expect a mixed theme this week as issues around the polity remain in focus.”
Codros Capital Limited said: “We reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns ahead of the 2019 elections, and the absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term.”
However, market breadth closed positive with 14 gainers and 12 losers. Regency Alliance Insurance led the gainers table by 10 per cent to close at 22 kobo per share.
Union Diagnostic & Clinical Services followed with a gain of eight per cent to close at 27 kobo.
Flour Mill Nigeria appreciated by 7.14 per cent to close at N16.50 per share. Also, Oando went up by 6.45 per cent to close at N4.95 and Honeywell Flour rose by 2.68 per cent to close at N1.08 per share.

On the other hand, Abbey Mortgage Bank led the laggards’ table by 9.40 per cent to close at N1.06 per share.
Diamond Bank trailed with a loss of 9.38 per cent to close at N1.16, while NEM Insurance shed 8.21 per cent to close at N2.57 per share.
Livestock Feeds dipped by 7.14 per cent to close at 52 kobo, while FCMB Groups went down by 2.45 per cent, to close at N1.59, per share.
The total volume traded rose by 17.19 per cent to 142.11 million shares, valued at N1.56 billion, and exchanged in 2,772 deals.
Transactions in the shares of Diamond Bank topped the activity chart with 32.24 million shares valued at N37.68 million.
Guaranty Trust Bank traded 19.98 million shares worth N738.14 million and United Bank for Africa (UBA) transacted 16.06 million shares valued at N128.29 million.
FBN Holdings followed with 13.26 million shares worth N98.73 million, while Zenith Bank traded 11.74 million shares valued at N285.21 million.

Akeem ReachnaijaNovember 13, 2018


Installed capacity hits 8million MTPA; Partners SON & ITF to train blockmakers across Nigeria

Less than 6 months after commissioning its 1.5million mtpa Kalambaina Cement Plant in Sokoto state, BUA Cement has announced that it has completed construction of its newest Cement Factory – The 3million MTPA Obu II Cement plant, Okpella in Edo State, Nigeria. This will bring the total capacity of BUA Obu cement operations to 6million tonnes and move the entire Group’s installed capacity to 8million MTPA. A date for commissioning is to be announced soon according to the statement from BUA Group.

Speaking at a business forum recently, Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group – owners of BUA Cement, said that the completion of BUA’s Obu Cement 2nd line puts BUA Cement in prime position to be Nigeria’s second largest cement producers by volume in a short while. According to Abdul Samad Rabiu, “Through a strategic combination of BUA Cement’s newer, more energy efficient plants and the proximity of our factory locations to key regional markets across Nigeria, BUA Cement has in no time become the industry leader in capacity utilization as well as maintaining a strong presence and brand leadership position in regional markets where it operates.

“The nature of the formulation of BUA Cement’s products and the product strength has seen it dubbed, “King of Strength” by blockmakers as well as others in the construction industry in Nigeria”, he added. In addition, BUA Cement has also entered into a partnership with the Standards Organisation of Nigeria and Industrial Training Fund to train thousands of blockmakers across Nigeria on the proper mix and techniques for blockmaking to reduce the rates of building collapse in Nigeria.

The completion of the new 3million mtpa BUA Obu II Cement Plant will see BUA’s installed capacity to rise to 8million metric tons by the time it fully becomes operational in December 2018. The plant has the capacity to run on multi-fuels – gas and heavy oils and will give BUA Cement a stronger foothold in the South-South and South East markets in Nigeria where it has become the preferred brand of cement. By virtue of its location in Okpella, Edo State, BUA Obu Cement plants are 5hours away from all the major markets across Nigeria.

BUA Group announced last year that it built a 50km pipeline to carry gas to fire its gas turbines at its Obu Cement Plant.

Akeem ReachnaijaNovember 13, 2018


The Central Bank of Nigeria has urged more women to approach the banks for small and medium scale loans because they will repay such grants better than their male counterparts.

Its Director of Corporate Communications, Mr Isaac Okorafor, said this during an event by the bank at the Lagos International Trade Fair in Lagos on Friday.

He also said that the CBN placed a high priority on women, and was increasing the number of females in its fold.

His words: “We have a special place for women and we have increased the number of women we have because we believe that women are more efficient, more reliable and more enterprising than men.

“It is easy to give more loans to women because they will pay back. They are not like those of us (men) who may not pay back.”

He explained further that if a woman had the naira note, the impact of the money would be greater than when it was given to a man.

Akeem ReachnaijaNovember 11, 2018

This time they aren’t shading all banks together, they’ve gone for one in particular GTB!
Sterling bank famous to have started the bank wars that trended on Nigeria social media space some months ago has started again, and this time they’re going for no bank other than Guaranteed Trust Bank!

In a recent ad they released the caption reads ORNGE IS SO LAST SEASON. everywhere stew.
This was a subtle way to reference GTB whose base colour is orange. Some billboards were even placed directly in front of the Lagos Fashion week venue organized by GTB.. What could be worse than that!

It should be noted that they avoided spelling the Orange in full, intentionally omitting the A.
Here are images I could gather.

Akeem ReachnaijaNovember 9, 2018


FSDH Merchant Bank Plc has predicted that about N2.82 trillion coming from matured government securities and Federal Account Allocation Committee (FAAC) are expected to hit the Nigerian money market this month.

The bank also projected a total outflow of approximately N1.03 trillion from various sources, including government securities and statutory withdrawals, leading to a net inflow of about N1.79trn.

The Head of Research and Strategy at FSDH Merchant Bank Limited, Mr. Ayodele Akinwunmi, while speaking on the firm’s latest monthly economic and financial market outlook report released recently.

The report was titled: “Local Competitiveness: A Prerequisite for Inclusive Growth.”

Presenting the highlight of the report, the Akinwunmi, reiterated the need for the diversification of the economy in order to drive inclusive growth and competitiveness.

According to him, the Nigerian economy has the potential to grow faster than the projection by the International Monetary Fund (IMF) and other organisation.

He added: “Even though FSDH is of the opinion that the Nigerian economy has the potential to grow faster that the projection of the IMF, this can only happen where we have coordinated set of policies that will unleash the economy: paying attention to power, paying attention to our infrastructure, involving the private sector, paying attention to our education system, paying attention to adoption of information and communication technology (ICT), to ensure that we are not lagging behind in the fourth industrial revolution which is digital revolution.

“We need to involve private sector operators in ensuring that we lay the foundation for a sustainable growth of the Nigerian economy and to diversify the revenue streams of the economy.”

According to him, “the more we create local competitiveness to make our local economy attractive, the better for us.

“And it comes in various ways: in terms of infrastructure, in education, right policies to develop the right education skills training to make people employable, right health facilities.”

Akinwunmi anticipated an uptick in inflation, to be, “driven by the escalation in price of food and account of the food shortage, the clash between herdsmen and farmers, the flooding issue that we had across the country. And maybe, if the minimum wage is approved for payment, it may likely have some little additional increase to it.”

He noted that if the ongoing agitation for an increase in minimum wage is approved and it leads to upsurge in liquidity in the system, the Monetary Policy Committee may intervene by adjusting the Cash Reserve Requirement (CRR) to soak the liquidity.

On capital flight, Aknwunmi said: “The capital flight will continue to increase because of the increase in rates in developed countries, which we call a saving haven. And it’s putting a lot of pressure on foreign exchange.”

Akeem ReachnaijaNovember 5, 2018


The Nigerian National Petroleum Corporation (NNPC) says 230.35 Billion Cubic Feet (BCF) of natural gas has been produced in the country in July.

The Corporation, in its Monthly Financial and Operations report for July, said the production averaged a daily output of 7,678.17 million Standard Cubic Feet (mmscfd).

It said the sum represented 8.81 per cent increase compared to the previous month, June 2018.

The report indicated that for the period July 2017 to July 2018, 3,084.09 BCF of gas was produced, representing an average daily production of 7,834.62 mmscfd.

It added that the daily average natural gas supply to gas power plants stood at 744.86 mmscfd, equivalent to power generation of 2,898 MW.

It explained that from the period to date, production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 69.38 per cent, 21.69 per cent and 8.93 per cent respectively to the total national gas production

A further breakdown of the numbers showed that out of the total volume of gas supplied in July 2018, 127.19 BCF of gas was commercialised, comprising 35.55 BCF and 91.65 BCF for the domestic and export market.

“This translates to a total supply of 1,184.81 mmscfd of gas to the domestic market and 3,055.00 mmscfd of gas supplied to the export market for the month.

“It implies that 55.98 per cent of the average daily gas produced was commercialised, while the balance of 44.02 per cent was re-injected, used as upstream fuel gas or flared,’’ it said

On Gas Flaring, the report said gas flare rate was 9.33 per cent, (706.96mmscfd), compared with average gas flare rate of 10.44 per cent ( 816.73mmscfd) for the period July 2017 to July 2018.

The Report also revealed that the corporation continued to ensure increased PMS supply and distribution across the country to sustain seamless distribution of petroleum products and zero fuel queue across the nation.

It noted that 2.18 billion litres of white products were distributed and sold by the Petroleum Products Marketing Company (PPMC) in July 2018 compared with 1.46 billion litres in June 2018.

According to the report, the sales comprised 1.84 billion litres of petrol, 0.13billion litres of kerosene and 0.21 billion litres of diesel, while total special products sold for the period was 10.70 million litres.

This, it added, comprised 0.87 million litres of other special products and 9.83 million litres of LPFO or 16 per cent, 12 per cent and 6 per cent respectively.

The report disclosed that during the period under review, pipeline break stood at 204, of which 16 pipeline points either failed to be welded or ruptured/clamped.

It also indicated that 188 pipeline points were vandalised as against 165 recorded last month, with Ibadan-Mosimi accounting for 124 points or 66 per cent of the vandalised pipeline, while Aba-Enugu, PHC-Aba and other locations accounted for the rest.

“A total of 1,858 vandalized points were recorded between July 2017 and July 2018,’’ it added.

In the Upstream Sector, the report disclosed that average crude oil price stood at 72.57 dollars per barrel in July 2018 as against 72.67 dollars per barrel in June 2018.

Industry watchers attributed the oil price decline to the slight rise in the global inventories, saying the scenario was expected to continue in the second half of 2018.

In July, the OPEC Reference Basket (ORB) increased marginally by 0.07 per cent to finish the month at 73.27 dollars per barrel, compared to the previous year ORB of 68.48 dollars per barrel in the same period, indicating a higher value of 4.7 or 7 dollars per cent.

Akeem ReachnaijaNovember 5, 2018


The recent publication of list of debtors by the Asset Management Corporation of Nigeria (AMCON) has been welcomed by experts who believed the move will boost the recovery of existing huge non-performing loan (NPLs) by the corporation.

Although mixed reaction had trailed the action by AMCON, especially its legal implication, some experts who spoke to Akelicious, however said the move by the corporation was a step in the right direction.

Former Managing Director, Unity Bank Plc, Dr. Mohammad Rislanudeen and a Professor of Finance and Capital Market at the Nasarawa State University, Keffi, Prof. Uche Uwaleke told Akelicious over the weekend that naming the debtors, including prominent Nigerians would be a game changer in its recovery drive.

According to Rislanudeen, the NPLs which stood at about five per cent when the debts were acquired by AMCOM in 2011, now averaged about 15 per cent, implying that more loans had gotten bad.

He said both AMCON and the debtor entities are currently in a dilemma-“because that chunk of money- over N4 trillion are tax payers’ money which was used rightly to ensure financial stability. And it’s the responsibility of AMCOM to recover these loans.”

However, the ex-banker added, publicising the identities of debtors in an effort to compel them to pay represented, “a right thing to whatever AMCON will do to ensure that those loans were recovered.”

Contrary to suggestions of a possible backlash, he said: “I don’t see any negative implication for the economy.

“If you are in business, you won’t like your business to fall. For instance, if you are indebted to AMCON to the tune of N1 billion and you’re doing good business, AMCON will never come to you and demand that you pay all the money at ago.

“All AMCON will want from you is to sit down with them, agree on the exact amount and restructure the facilities to be paid over a period of time based on your own cash flows.

“All AMCON wants is ownership: agreeing that you’re indebted and that you’ll start to pay.

“So anyone that’s in good business and is not ready to pay debts, then he should as well allow his business to go.

“If we don’t do that, we’ll continue to have this problem of moral hazard and adverse selection. It means even from day one, both the borrower and lender knows that the facility can get bad and yet they went ahead because they know at some point, somebody will take over.”

He added: “People will just go to bank, borrow money and then refuse to pay. On the part of the banks, because they know there’s AMCON- there’s always a place to sell the loans- it will be an unending vicious cycle.”

In the same vein, Uwaleke posited that the publication of the list of debtors would go a long way to aid recovery of most of the debts that AMCON took over from distressed banks.

He added:” AMCON is meant to be a temporary resolution vehicle and therefore should be seen to be ready to activate its sunset clause any time soon.

“This is one of the steps it should be taking to recover the debts owed it in preparation for winding down.”

According to the professor: “One implication of this sort of action is to send the right signals to bank customers with a reputation for loan defaults that they are expected to honour their obligation to the banks as at when due or risk being named and shamed.

“This will help to reduce the high level of non-performing loans in the banking industry. So, I think the development bodes well for financial system stability.”

Nevertheless, the former Unity Bank boss said AMCON was unlikely to wind up its operations by 2020 given that it “will not be able to recover those loans.”

He said: “So if they (AMCON) don’t recover the loans and more loans are getting bad, and there may be another pressure for another round of AMCON; because now, there’s Polaris Bank- that has huge bad debt…Now it has been liquidated and the entire share now belong to the NDIC and after some time, it’ll be handed over to AMCOM.”

Akeem ReachnaijaNovember 5, 2018


money has announced the appointment of Tobi Boshoro as its new CEO. Tobi is armed with a wealth of experience in business strategy, marketing and business development in the fintech sector.

Below is her profile:

Tobi holds a BSc. in Economics from Ogun State University, Ago-Iwoye and a Masters’ degree in Strategic Marketing from Cranfield University’s School of Management, England.

She served as Stanbic IBTC Bank’s Head, Digital Strategy, Issuing and Service Management as well as Head, Electronic Banking. Prior to Stanbic IBTC Bank, she rose through the ranks at the Interswitch Group to become the Group Head, Issuer Management.

She is an alumnus of the prestigious Harvard Business School, having completed multiple Executive Management programmes, including the General Management Programme in 2013. She is a member of the Chartered Institute of Marketing (CIM) and The Market Research Society (MRS), both in the United Kingdom.

Speaking on her new appointment, Tobi said she is excited to join the Renmoney team and is fired up to take the company to even greater heights.  “I personally seek out opportunities to leverage technology and data to improve people’s lives so Renmoney is the perfect fit for me. Renmoney provides credit to consumers and small businesses which simultaneously impacts their lives and drives economic growth. I’m looking forward to working with the fantastic team at this fintech company, who are all laser-focused on building convenient, sustainable, credit solutions for Nigerians.”

Speaking on Tobi’s appointment, Kieran Donnelly, Chairman, Renmoney Board of Directors said: “We are very excited to have Tobi on board. As a fintech company, her experience in driving innovation and excellent service delivery will be critical to our success. Under Tobi’s leadership, I am more confident than ever that we will deliver outstanding digital service experiences to even more customers in Nigeria.”

Renmoney is a fintech lending company operating under a Microfinance Banking license in Lagos, Nigeria. The company provides loans to individuals and small businesses via its website contact centre, agent network and branches. Renmoney also offers market leading rates on Fixed Deposits and Savings accounts and is regulated by the CBN and insured by the NDIC.

Akeem ReachnaijaNovember 3, 2018


The Central Bank of Nigeria (CBN) has raised the minimum capital base of microfinance banks in the country giving them up to April 2020 to recapitalise.

The CBN in a circular issued and signed by the director, financial Policy and Regulation department, Kevin Amugo, had increased the minimum capital base of National MFBs to N5 billion from N2 billion while that of state was increased to N1 billion from N100 million. Under the new capital base Unit license MFB which previously requires N20 million minimum paid up capital to operate will now require N200 million.

The CBN said the move had become inevitable as the sector had been contending with challenges such as inadequate capital base, weak corporate governance, ineffective risk management practices, dearth of requisite capacity and mission drift. Given the role of microfinance banks in economic growth and development, the CBN introduced the Microfinance Policy, Regulatory and Supervisory Framework on December 15, 2005 (revised in 201 l).
The key focus of the policy was among others, to increase financial inclusion rate in the country: improve access to financial services for the active rural poor; and pursue poverty eradication. The microfinance banking sub-sector, in pursuit of the above objectives.

It said having reviewed the state of health of the industry and it is of the view that microfinance banks as presently constituted, would be unable to meet the critical targets set out in the Microfinance Policy, hence the need for specific reforms to strengthen the subsector and reposition microfinance banks towards improved performance. “Consequently, the CBN, in exercise of the powers conferred on it by the Banks and Other Financial Institutions Act and in furtherance of its mandate to promote a sound financial system in Nigeria, hereby increases the minimum capital requirement of microfinance banks as follows:
– Unit Microfinance Bank N200 million,
– State Microfinance Bank N1 billion,
– National Microfinance Bank N5 billion.

To meet these requirements, existing microfinance banks are expected to explore the possibility of mergers and acquisitions and/or direct injection of funds.
The Revised Regulatory and Supervisory Guidelines for Microfinance Banks, Code of Corporate Governance for Microfinance Banks and sector specific Prudential Guidelines for Microfinance Banks would be issued in due course.
“Institutions that meet the capital requirements as well as demonstrate the existence of strong corporate governance in their operations would be allowed to open account at the CBN office within their state of operation. Such institutions would also be channels for micro funding activities at the CBN and the Development Bank of Nigeria.’’

Akeem ReachnaijaOctober 29, 2018

The Inspector General of Police, Ibrahim K Idris on Friday, October 26th unveiled the new 2019 model of IVM Granite at Innoson vehicle Manufacturing Company Ltd Nnewi.

The IGP who was ably represented by DIG Agboola Oshodi-Glover during an inspection of the factory, expressed satisfaction at the level of activities going on at the factory and assured the Chairman of Innoson Vehicles, Chief Innocent Chukwuma OFR that he would personally brief the IGP on the facilities on ground and the capacity of the factory to manufacture specific operational vehicles to be used by the Nigerian Police.

DIG Oshodi Glover thereafter assured Chief Chukwuma that the Nigerian Police will patronize Innoson vehicles because of his conviction that the company has the capacity to produce world class standard vehicles.

The unveiling of the new vehicle also saw the commissioning of a new production line by the Executive Governor of Anambra State who was represented by the Deputy Governor, Dr Nkem Okeke. The Governor in his remarks appreciated the tenacity of Chief Chukwuma who against odds has persevered in his determination to put the name of Nigeria among vehicle manufacturers in the world. The Governor called for more patronage from both government and individuals as that is the only way that the vehicle company can be sustained.

Earlier during his welcome address, the Chairman of Innoson Vehicles, Chief Dr Innocent Chukwuma OFR stated that Innoson Vehicles has come this far because of the tremendous support it has received from the Nigerian Government, most especially under the administration of President Muhammadu Buhari GCFR. Chief Chukwuma stated that under the current administration, Innoson Vehicles signed a memorandum of understanding with the Nigerian Air Force and collaborated with the Nigerian Army Authority for the design, modification, manufacturing and supply of Military vehicles.

Speaking further, “Today we are unveiling our First automated production line section. This section can weld the whole body of a vehicle in four minutes as against six hours when it’s done manually.

This new line will greatly increase our capacity as a company from 10,000 to 60,000 annual production units. It will also provide more jobs for our teeming population. As we strive to become one of the leading vehicle manufacturing brands, we shall keep no stone unturned in our determination to be the best.” Chief Chukwuma said.

Other dignitaries at the event include; Hon Chris Azubogu, Dame Virgy Etiaba, HRH Igwe KON Orizu CON, State Commissioners of Police from Anambra, Imo and Enugu, Members of of Anambra State Traditional Ruling Council, Captains of Industries, Members of Anambra State Chambers of Commerce and Industries etc.

The 2019 Edition of IVM Granite is in line with the latest generation of international brand of high end Pick Up. It is a wonder on wheel and has four suspension systems to withstand any terrain. It is ruggedly built for African roads. IVM Granite 2019 is equipped with luxurious and comfortable interior and has a 6 manual transmission plus indirect wire manipulation which is a technology shift system adopted for flexible shaft to control the gearshift mechanism. It is also benchmarked with NVH (Noise Vibration and Harshness) world standard assuring good performance, and the engine is turbo charged to enhance performance.

Cornel Osigwe
Head Corporate Communication
Innoson Group