Controversial Nigerian singer, Habeeb Okikiola, popularly known as Portable, was attacked at his home on Monday morning.
Naija News learnt that the ‘Zazu Zeh’ crooner was attacked after allegedly failing to perform at a show he was paid for.
Taking to his Instagram page, Portable shared videos of some men at his apartment as they engaged in a heated argument.
In another post via his Instagram story, the singer stated that he had gone to the hospital for treatment.
He wrote, “Omo ologo surrendered by my enemies. Na God dey cover me Zazuu. This people really do me bad but Thank God say man no be God. Am in pain on my way to hospital”
Media
Nigerian singer, Damini Ogulu, popularly known as Burna Boy, is set to make history as the first African artiste to perform at the Grammys live recording award show.
Naija News reports that the Recording Academy, in a terse statement via X on Monday, January 22, 2024, disclosed that Burna Boy has been added to the performer lineup for the 2024 Grammys.
The ‘African Giant’ crooner was announced alongside Luke Combs and Travis Scott.
“Attention: African Giant @BurnaBoy will take the #GRAMMYs stage on Sunday, February 4 at 8 PM ET / 5 PM PT on @CBS,” the Grammy organisers wrote on their X handle.
Other performers earlier announced include Olivia Rodrigo, Billie Eilish, and Dua Lipa.
Grammy award winner Burna Boy is nominated in four categories in this year’s awards, including Best Global Music Album (“I Told Them…”), Best African Music Performance (“City Boys”), Best Global Music Performance (“Alone”), and Best Melodic Rap Performance (“Sittin’ on Top of the World”).
Scott is nominated for best rap album for Utopia. He was also nominated in that category for his previous studio album, Astroworld.
Combs is up for Best Country Solo Performance for his version of Tracy Chapman’s “Fast Car.”
Trevor Noah will host the Grammy’s for the fourth consecutive year.
Guinea-Bissau coach, Baciro Candé has stressed that he and his team are determined to beat the Super Eagles later today in their last group stage game of the 2023 AFCON.
Guinea-Bissau and the Super Eagles of Nigeria will clash at the Stade Félix Houphoüet-Boigny in Abidjan by 6 p.m. later this evening, January 22.
The Wild Dogs are going into the game sitting at the bottom of Group A after two losses in their last two games. Despite such a form, they intend to provide one of the biggest upsets of the tournament against the Super Eagles.
Recall that Guinea-Bissau beat Nigeria 1-0 in Abuja during the 2023 AFCON qualifiers and Nigeria defeated them 1-0 in the return leg.
Hence, though they have suffered defeats at the hands of Equatorial Guinea and Ivory Coast in the 2023 AFCON Group A, they fancy a chance of bowing out of the tournament with pride.
If they beat Nigeria, they’ll get up to three points, but since they’re now bottom of Group A, that won’t be enough to keep them in the tournament.
“Mentally we will be very strong and go out for a win. We know football has its peculiarities but we would do everything for a win against Nigeria,” the Guinea-Bissau coach said.
“I believe everything is possible, physically and emotionally we will be ready.”
One of the team’s stars, Carlos Mané added, “We know it’s now difficult to progress to the next stage but we will play for our families and our country. We will fight with all we have to give a good game against Nigeria.”
After almost six months of respite, bandits, last Saturday night, stormed the Dangunu community in Munya Local Government Area of Niger State, killed one person and abducted 21 villagers.
Among those abducted are 16 members of one family whose father was abducted two years ago by bandits, but later released after the payment of N4 million ransom.
Our source said the father of 16, whose name was given as Mallam Ahmadu Adamu, was later killed by the bandits after a severe beating.
A pregnant woman, who was released by the gunmen because of her condition, broke the news of late Mallam Adamu, saying, “they beat him until he slumped and died in the night.”
The body of the late Adamu was deposited at the river bank by the gunmen for his family to pick up.
The five other abductees are members of Dangunu community, five kilometres from Sarkin Pawa, the headquarters of Munya local government.
Our source said the gunmen first abducted the five villagers before going to the residence of the late Adamu, where they abducted him, his wives and children.
“On their way out of the community, it was gathered that the bandits released the first five villagers kidnapped because the wooden boat they used to evacuate their victims could not convey all of them. They, however, went away with Adamu and members of his family.”
The heavily armed gunmen, Daily Sun was told, entered the Dangunu by boat from the river between Chikun in Kaduna State and the town.
The latest incident, the eyewitness said, may be the handiwork of informants since most farmers have completed the harvests of their crops.
Police Public Relations Officer, ASP Wasiu Abiodun, could not be reached for confirmation of this report.
The chairman of Munya local government, Mallam Abdullahi Najume, could not be reached for confirmation.
After almost six months of respite, bandits, last Saturday night, stormed the Dangunu community in Munya Local Government Area of Niger State, killed one person and abducted 21 villagers.
Among those abducted are 16 members of one family whose father was abducted two years ago by bandits, but later released after the payment of N4 million ransom.
Our source said the father of 16, whose name was given as Mallam Ahmadu Adamu, was later killed by the bandits after a severe beating.
A pregnant woman, who was released by the gunmen because of her condition, broke the news of late Mallam Adamu, saying, “they beat him until he slumped and died in the night.”
The body of the late Adamu was deposited at the river bank by the gunmen for his family to pick up.
The five other abductees are members of Dangunu community, five kilometres from Sarkin Pawa, the headquarters of Munya local government.
Our source said the gunmen first abducted the five villagers before going to the residence of the late Adamu, where they abducted him, his wives and children.
“On their way out of the community, it was gathered that the bandits released the first five villagers kidnapped because the wooden boat they used to evacuate their victims could not convey all of them. They, however, went away with Adamu and members of his family.”
The heavily armed gunmen, Daily Sun was told, entered the Dangunu by boat from the river between Chikun in Kaduna State and the town.
The latest incident, the eyewitness said, may be the handiwork of informants since most farmers have completed the harvests of their crops.
Police Public Relations Officer, ASP Wasiu Abiodun, could not be reached for confirmation of this report.
The chairman of Munya local government, Mallam Abdullahi Najume, could not be reached for confirmation.
More firms may leave soon – Report
Unless audacious steps are taken to fix the ailing Nigerian economy and halt the exodus of multinational firms, the country, literally on ventilators, may eventually collapse, experts warned at the weekend.
The warning comes as the federal government, banking on the exaggerated capacity of local firms to fill the void, maintains an offish posturing over the matter.
Giant players in the oil & gas, pharmaceutical and manufacturing (Fast Moving Consumer Goods) sectors have shut the door on Nigeria over a myriad of challenges they can no longer contend with.
The horror heightened at the weekend when Unilever Nigeria announced the stoppage of production and sales of home care and skin cleaning products. The announcement came 10 months after the company announced plans to exit both markets.
‘‘Subsequent to the company’s exit from the home care and skin cleaning categories, the factory buildings have been leased to a third party for a duration of 10 years, with annual rental payments,’’ the company said.
Prior to the latest exit of Unilever, other multinationals which included; Procter and Gamble, GSK, Pernord Ricord, had exited the country over varying reasons such as; energy crises, insecurity, multiple taxation, foreign exchange shortages, inconsistency in government policies among others.
According to the Nigeria Employees Consultative Association (NECA), about 22 multinational firms left Nigeria between 2021 and 2023, accounting for about 20,000 job losses and swelling unemployment rate to 33.3 per cent.
The implication on the economy, according to industry observers, is devastating as many more Nigerians have been pushed into the poverty pit just as the government’s revenue has shrunk.
More worrisome is a recent report by a financial solutions firm, Cardinal Stone, titled ‘Strategic Resilience: Sailing Through Business Disruptions’ noted that high operating costs would persist for firms operating in the FMCG sub-sector.
The report added that multinational firms in the FMCG sub-sector may exit the country this year if the operating environment does not improve.
According to the report, the FMCG sector remains heavily exposed to changes in commodity prices, exchange rates, import and clearing duties, and freight costs.
It noted that FMCGs might not benefit from the moderation in global commodity prices because of the significant depreciation of naira, which weakened from N422.00/$ in June 2023 to N951.94/$ in December 2023, after the Central Bank of Nigeria floated the country’s exchange rate.
“The alternative path may eventually degenerate to exit from the operating environment or high-cost segments, similar to the cases with Procter and Gamble, GSK, Pernord Ricord, and more recently Unilever.”
It added that weaker currency could spike diesel costs, as was the case in the first half of 2023, which saw diesel prices soar to a new high of N1,004.98 per litre in the second half of 2023.
This development is a further setback to the Federal Government’s N3 trillion company income tax revenue projected for 2024 as contained in the Medium Term Expenditure framework.
At the oil and gas sector, the latest exiting firm is Global oil giant, Shell that has divested its onshore operations which was acquired by a consortium of five firms, though there are concerns over their capacity to add value to whatever it is they acquired from Shell.
But the Minister of State, Petroleum Resources (Oil), Heineken Lokpobiri, has asked troubled Nigerians not to panick as Shell’s exit creates a golden opportunity for local players to grow.
Commenting on the development, Former Chairman of the Manufacturers Association of Nigeria (MAN), Mr. Frank Onyebu, said it was no longer a secret that a number of multinational corporations have left the shores of Nigeria in the recent past.
However, he said the bad news was that more of these companies are in the process of taking similar actions.
He added that the inflow of foreign direct investment into the country has declined dramatically over the past years, meaning that the net FDI flow is negative.
‘‘Many factors are responsible for this exodus of foreign investment in the country, including inconsistency in government policies, unstable monetary and fiscal policies, infrastructural deficiencies, multiple taxation, unprecedented insecurity, forex illiquidity, and other structural challenges. These factors have effectively made our business environment rather unfriendly, and therefore uncompetitive.
According to him, the multinational corporations are aware of choices of better business environment in other countries and are bound to make decisions that are best suited for their businesses, saying they would not remain in this country if it’s more profitable for them to relocate to another country.
‘‘Nigeria is bound to lose a lot if this trend is not urgently reversed. First, our ability to attract foreign investment, which is already at its all-time low, could be completely decimated. We would also be losing more than N100 billion of potential tax revenue from both potential investors and those that would be exiting. So much is already being lost due to the relocation of these companies, and much more could be lost.
“But by far the most critical is the loss of employment. These companies have had to lay off workers owing to their closure. These laid-off workers have to join the already growing unemployment market. More than 50,000 jobs have been lost in the past five years and much more could be on the line. This would obviously worsen the already bad security situation in the country, since as they say, an idle mind is the devil’s workshop.’’
On the way forward, he said government needs to immediately assemble a team of experts to enact policies that would be endearing not just to foreign investors but also to local investors.
‘‘We need to create and rigidly implement policies that are friendly for investment. We need to do something about multiple taxation. We need to eliminate corruption at all levels. We need to immediately eliminate waste while drastically reducing the cost of governance.’’
Corroborating the views of Onyebu, Founder and CEO, Center for the Promotion of Private Emterprise (CPPE), Mr. Muda Yusuf, said the exit of multinational companies from Nigeria was regrettable, adding that for most of them, the issues were about the volatile macroeconomic environment and to a lesser extent, the challenge of insecurity.
‘‘The biggest shock to most of them was the naira exchange rate depreciation and the corresponding exchange rate losses. The higher the foreign exchange exposure, the more profound the losses.
‘‘For most of them, the shareholdings were in foreign exchange. And the returns would be valued in foreign currency. Naturally with the sharp currency depreciation, the returns on investment for these shareholders shrunk massively. There was a massive erosion of shareholder value.’’
According to him, the multinationals also had huge forex exposure in debt financing because most of their financing was in foreign currency.
‘‘Again, because of the drastic naira depreciation, many of them were thrown into a loss position. The effect on their balance sheets was very profound. Other companies with similar forex exposures suffered similar fate. The effects were not limited to multinationals. The forex liquidity crisis was also a big issue for them.
“The third major factor was the heightened competition in the consumer goods space in which the multinationals were major players. Most of them progressively lost their market share to the raging competition and disruptions in the consumer market segment of the economy. Many of the multinationals lacked the business model flexibility which the changing market dynamics demands. According to the CEO of one of multinationals that left, the company took the decision to exit the Nigerian market three years ago. The company had been scaling down progressively since then.
Additionally, the energy situation resulted in cost escalation, forex liquidity disrupted repatriation of funds and the porous borders created problem of smuggling. These were the real issues. But the crystallisation of the exchange rate risk was the biggest challenge.’’
In his view, Chairman, SMEs Group of the Lagos Chamber of Commerce and Industry (LCCI), Mr.Daniel Dickson-Okezie, lamented that the exit of these firms would translate to a sharp drop in tax revenue which would invariably hurt the economy and its GDP.
Quoting data from the National Bureau of Statistics, Dickson-Okezie, lamented that investment declined by 33 per cent to $1.035 million in the second quarter of 2023 compared to second quarter of 2022 due to the harsh operating environment.
He added that the United Nations Conferences on Trade and Development (UNCTAD) also revealed that foreign direct investment inflows into the country turned negative (-$187 million) last year for the first time in at least 33 years.
To reverse the ugly trend, he said Government must put measures in place to stabilise and ensure availability of forex, reduce the inflationary trend, create tax breaks and holidays for businesses and deal with rising interest rates and give incentives to industries that are thriving such as they gave to Dangote.
‘‘Of course the reason for the flight is not far fetched, the harsh business environment has been attributed to the cause, which manifests in form of forex scarcity, Poor power supply, port congestion, multiple taxation, insecurity, poor infrastructure, among others which have effects on profitability and sustainability.
When a company is not making profit, as a business, there is no way it will still be in business and this will affect the economy.”
Nigerian gambling magnate Kessington Adebutu is riding high on his winning streak on the Nigerian Stock Exchange (NGX) as his stake in Wema Bank — one of Nigeria’s oldest financial institutions — experienced a substantial surge, registering an impressive $26-million gain.
Since the start of the new year, Adebutu’s stake in Wema Bank has surged by N23.17 billion ($26 million) as investors on the Nigerian Stock Exchange embraced the recent bullish sentiment, boosting their holdings in the leading financial services industry.
Wema Bank shares soar over 114 percent, driving market cap above $170 million
Wema Bank, in addition to being one of Nigeria’s leading indigenous banks, is pioneering Africa’s first fully digital bank, ALAT, and is one of Nigeria’s most resilient banks with decades of experience in the financial services sector.
This year alone, the share price of the financial services group has increased by 114.3 percent, rising from N5.6 ($0.006) to N12 (0.013) — thus pushing the group’s market cap above the $170-million mark and returning impressive gains to shareholders.
Adebutu’s Wema Bank stake surpasses $45 million amidst market rally
Adebutu — the founder and CEO of Nigeria’s oldest gaming company, Premier Lotto Limited — owns a 28.09-percent stake in Wema Bank through Neemtree Limited, a special purpose vehicle incorporated in 2013 to acquire shares in targeted organizations.
According to data tracked by Billionaires.Africa the recent surge in the bank’s shares has caused the market value of Adebutu’s stake to increase by N23.17 billion ($26 million) in just 20 days, surging from N20.27 billion ($22.76 million) on Jan. 1 to N43.44 billion ($48.78 million).
Adebutu’s recent surge further establishes his standing as one of the wealthiest investors on the NGX. Meanwhile, Wema Bank remains a top player in Nigeria’s financial services industry, with millions of customers relying on its diverse products. The bank remains a leader in innovation and resilience within the country’s financial sector.
[billionaires.africa]
Stocks continue to see an uptrend on the back of increasing local investors’ interest, returning 13.8 per cent last week and as much as 26.4 per cent in just the first three weeks of the year.
That has made the Nigerian equities market the best-performing bourse across the globe, with bank stocks as the driving force.
As the earnings season draws near, strong corporate results coupled with higher dividends will likely play a big role in sustaining the current momentum at least in the short term.
PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time, particularly in the short term.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Custodian Investment
Custodian Investment tops this week’s pick for currently trading well below its intrinsic value, brightening its chances of strong price appreciation in the future.
The price-to-book (PB) ratio of the company is presently 0.8x, while its price-to-earnings (PE) is 3.4x.
Mutual Benefits Assurance
Mutual Benefits Assurance appears in the pick for currently trading substantially below its actual value.
Its PB ratio is 0.6x at the moment, while the PE ratio is 3.6x.
Learn Africa
Learn Africa makes the cut for currently trading below its real value. The publisher’s PB ratio is currently 0.7x, while the PE ratio is 6.1x.
Linkage Assurance
Linkage Assurance appears on the list for trading significantly below its real value.
The underwriter’s PB ratio is 0.7x, while its PE ratio is 4.9x.
FBN Holdings
FBN Holdings features on this week’s stock selection for currently trading below its intrinsic value.
The financial services group’s present PB ratio is 0.7x, while the PE ratio is 3.4x.
Zenith Bank
Zenith Bank makes this week’s list for currently trading below its real value. The lender’s PB ratio is 0.7x, while the PE ratio is 0.7x.
[Premium Times]
Popular Nollywood actress, Sarah Martins has disclosed that she got married as a virgin.
She stated this while replying claims from Solomon Buchi that women who get married as virgins are happier and last longer in marriages.
Earlier, Buchi had taken to his X account to respond to a comment questioning the importance being a virgin.
Buchi argued that that being a virgin has been statistically proven to make people last longer in marriage.
He based his premise on the reason that most people who are not very sexually active and who don’t have multiple sexual partners will find more sexual satisfaction with their partners and would not want to look out for sexual pleasures outside.
However, Martins insisted that she got married as a virgin at the age of 19, but that did not stop her from leaving her marriage.
She explained that while married she was loyal and submissive, but she had to leave a situation that threatened her health.
Martins wrote, “Dear Solomon Buchi,
“I was married as a virgin at the age of 19
“I am still a loyal, submissive, respectful, hardworking woman.
“Getting married as a virgin will never stop you from getting a divorce if the need arises.. if e no good for your health quit!”
[NaijaNews]
An early review of oil prices on Monday, Jan 22 has shown that Brent crude price was at $78.47 per barrel around 03:53 am GMT.
Reuters reported that prices struggled to gain momentum as economic uncertainties weighed heavily on the outlook for global oil demand, countering geopolitical tensions in the Middle East and a recent attack on a Russian fuel export terminal.
- “Brent crude edged down by 9 cents, or 0.1%, settling at $78.47 a barrel by 0353 GMT, following a 54-cent decline on Friday. Meanwhile, the front-month U.S. West Texas Intermediate crude futures for February delivery inched up by 11 cents to $73.52 a barrel, with the contract nearing its expiration on Monday. The more active March WTI contract stood at $73.21 a barrel, down by 4 cents.”
According to reports in the Middle East, ongoing conflicts, including the Gaza war and a U.S. strike on a Houthi missile in the Gulf of Aden, added to the geopolitical complexities.
Despite geopolitical concerns, particularly an alleged Ukrainian drone attack at a significant Russian fuel export terminal, oil prices exhibited minimal movement.
Russian producer Novatek reported a suspension of some operations at the Baltic Sea terminal due to a fire. Experts suggested that the subdued market reopening reflected the current sentiment in the crude oil market.
Recall last week Nairametrics reported that oil prices had sunk to $77 per barrel, yet this is far from the average of $94/bbl in September, reversing all the gains accrued in 2023 Q3.
Tightened European and African crude markets
Yet, despite these events, crude oil appeared set for rangebound trading with some downward pressure, according to Vandana Hari, founder of oil market analysis provider Vanda Insights.
Disruptions caused by attacks in the Red Sea and the Gulf of Aden have impacted global trade, tightening European and African crude markets.
- The first-month Brent contract’s premium over the six-month contract widened to $1.99 on Friday, indicating a perception of tighter supply for prompt delivery, known as backwardation.
- IG’s Sycamore highlighted prevailing headwinds for oil prices, citing increased production, mixed growth outlooks in China and Europe, and an anticipated slowdown in the U.S. economy, as indicated by upcoming GDP data.
Various organizations, including the U.S. Energy Information Administration, the International Energy Agency, and the Organization of the Petroleum Exporting Countries, presented a wide range of demand growth forecasts for 2024, ranging from 1.24 million to 2.25 million barrels per day.
[Nairametrics]
Super Eagles coach, José Santos Peseiro, has insisted that despite looking good for a spot in the Round of 16 following their victory against hosts Cote d’Ivoire on Thursday, his boys will not take their feet off the pedal when they battle Guinea Bissau this evening in their final group A match.
“We defeated Cote d’Ivoire, but that is already in the past. We know that in football, what counts is the moment. We must temper our confidence, and put in more work as required. We must not rest.
“We want to take the first place and for that, we must do battle. We must do what is necessary to accomplish our mission tomorrow (today),” Peseiro said at the pre-match conference at the Palais de la Culture in the Treichville area of Abidjan yesterday.
Peseiro will lead Nigeria to come face-to-face with the only team to have beaten his Super Eagles in a competitive match since he took the reins of the three-time African champions 20 months ago.
With four points from their first two matches, including a morale-pumping victory over the host nation and one of the favourites, the Eagles are walking with springs in their steps at their Pullman Hotel Abidjan and at their training sessions at the École National de la Police. But Peseiro cautions that the work is not yet done and there is utmost need for level heads.
“We have to forget that we defeated the host nation. There is a lot more work to be done. We want to be here for the long haul,” he told thenff.com after the press conference.
Peseiro won his first two competitive games with the Super Eagles – a 2-1 defeat of Sierra Leone in Abuja and a record-breaking international win of 10—0 against Sao Tome and Principe in Agadir, Morocco in June 2022.
However, the Wild Dogs stepped on Nigeria soil and pipped the Eagles 1-0 in an AFCON 2023 qualifier.
Nigeria repaid the compliment a few days later in Bissau, but the Portuguese trainer says the Portuguese-speaking nation still owes him a clap back.
“We are not thinking about revenge but we are here to top the group and they are in our sights. We must do what has to be done. Guinea Bissau have no point and will play with freedom, and that is when a team becomes dangerous.”
Both teams clash at the Stade Félix Houphoüet-Boigny in central Abidjan from 5pm CIV time today, which is 6pm Nigeria time.
Monday’s crucial game, which will be Nigeria’s 100th match at the Africa Cup of Nations since a group phase encounter against Egypt in nearby Ghana in 1963, will see the Super Eagles finish top of group A with a win, as long as Equatorial Guinea, also on four points, do not humiliate host nation Cote d’Ivoire at an encounter holding simultaneously at the Stade Olympique Alassane Ouattara in Ebimpe.
[Leadership]
More...
• Market awaits Cardoso’s long-term inflation target ahead of Feb MPC meeting
• New external members of committee to be unveiled before meeting
• Import-dependent companies faltering
• FX market ‘rigged’ against us, operator cries out
President Bola Tinubu is starting to look like a poor economic manager as widespread scepticism sweeps across the economy less than a month into a year, a situation many pointed to as a turning point in the failing economy.
If the current administration fails in its promise to reverse the downward macroeconomic trend to give hope to millions of Nigeria who are struggling to pick their bills, it will be a traumatic contradiction of Tinubu’s rating at last year’s pool as a good economic manager.
In the face of daunting challenges, there seems to be too many missing links in the technical arm of economic management to articulate a cohesive policy thrust.
For one, the Central Bank of Nigeria (CBN) under Yemi Cardoso, who took the reins exactly four months ago, has carried on the task of monetary and credit policy intervention without inputs from independent members of the rate-fixing Monetary Policy Committee (MPC).
Already, the odds are rising against the national economic managers. Last week, naira, which was among the three top worst-performing currencies last year after losing 49 per cent of its value at the official market, printed its weakest value trading around N1370/$.
The local currency closed 2022 at N461.5/$1, but slipped to N907.11 against dollar at the close of last year’s business, making it the third worst-performing currency behind the Lebanese pound and Argentina peso.
The currency plunged after the long-awaited exchange rate liberalisation policy was tested but some analysts dismissed the sharp depreciation as a short-term shock.
Seven months into the new regime, naira continues to falter at both the parallel market and the newly coined Nigerian Autonomous Foreign Exchange Rate (NAFEX). J
anuary, which many analysts said could mark the beginning of a more stable naira, has set a higher moving average (MA) with the local currency consistently flirting with N1,100/$ mark. Last week, it closed at N891.04/$, a modest appreciation from the January high of N957.51/$.
The recent spot exchange rate of naira, which is far above the year’s post-reform average, raised worry among end-users and analysts.
Meanwhile, a member of the committee told The Guardian yesterday that the governor has not communicated with the external members since he assumed office, not in the least to share their experience with the new management .
The broken link may be robbing the Central Bank of the benefit of institutional memory, which may come in handy at this critical time of its task. Whereas the committee has not been officially dissolved, the CBN has assumed the old composition is gone with the embattled ex-CBN boss, Godwin Emefiele, some of whom still have three years to the end of their statutory tenure.
But a member said their appointment could not be terminated without recourse to the provisions of the CBN Act or the Senate, which endorsed their nomination.
“In line with the law, you can only terminate our appointment with the Senate approval, except where we voluntarily resign. What the new management of the CBN is doing is new to our system, and we are watching,” a member noted yesterday.
Still, another member of the team, who also confirmed that he only read on newspaper of the February meeting, said MPC is a technical team duly constituted by the President and approved by the Senate hence it could not have been dissolved alongside boards of parastatals as assumed.
The member said dissolving the committee abruptly would amount to impunity and a contradiction of the CBN Act.
However, another source close to the current CBN leadership team faulted the position of the member, arguing that MPC is a mere technical arm of the CBN that had been unduly elevated in recent years.
According to the source, who pleaded anonymity, the old MPC is considered to have been dissolved with the apex bank’s board, since it is a technical body that should gather market data, analyse and make a recommendation to the board should make decisions based on the findings and assume responsibility for the decision.
The Guardian was informed at the weekend that the apex bank has sent names of nominees who will fill the vacant seats on the committee to the president for consideration and action. The list, which could not be confirmed at the Presidency, is expected to have been sent to the Senate and approval secured before the next meeting, which is scheduled for February 26 and 27.
A recomposed MPC would trigger mass litigation from members, who have been left out of monetary policy conduct in the past four months without any communication on their status, The Guardian was informed yesterday.
Those knowledgeable about the plan of the aggrieved members said, “they are also wary of the message they will be sending to the public if they allow the government to go with the illegality”.
“The ex-managers of the CBN are facing corruption charges. But these guys were not part of the day-to-day management of the bank. If they keep quiet, they know, the public will assume that they have accepted that they were part of those who mismanaged the system,” the source said.
While a new team is yet to be announced, Cardoso seems to have been working with another team of technical experts (who are only awaiting a formal appointment) behind closed doors. A retreat, already interpreted to be an onboarding meeting, was reportedly held for members recently, leading to the new schedule.
The Guardian had earlier reported that the membership status was shrouded in uncertainty with Cardoso and the President considering the replacement of the old team. Delay and other possible hiccups in the consideration of the nominees were said to have been factored into the scheduling of the February MPC meeting – the first Cardoso will hold since he came to office.
MPC, which is considered the apex body responsible for monetary policy and chaired by the CBN governor, is made up of five independent members – with two statutorily nominated by the CBN governor while the President nominates three. All members of the Board of Governor (BoG) – the governor and the deputies – are among the team while another two voting members are handpicked from the board.
Relevant directors and key management staff are observers during the committee meeting.
The February rate decision meeting is crucial not only because it would help the market to decipher Cardoso’s position on inflation and growth, but how the interplay of the two negatively correlated variables advance the cause of building a prosperous economy but also because it will test the governor’s commitment to a policy switch in achieving the inflation target.
It is not farfetched to expect the governor to announce Nigeria’s long-term inflation target at the meeting.
The CBN boss, at the 2023 Bankers’ Dinner in Lagos, announced the adoption of inflation targeting as opposed to the failed monetary targeting to rein in the historically high inflation.
“I, together with my team at the Central Bank have been focused on doing so in the past two months. We have critically reviewed the effectiveness of the Central Bank’s monetary policy tools and have spent time fixing the transmission mechanism to ensure the decisions of MPC (Monetary Policy Committee) meetings actually result in desired objectives. For quite some time, there has been a dislocation of our monetary transmission mechanisms rendering the MPC meetings largely ineffective,” Cardoso told the audience.
Falling naira and rising prices are currently pushing the economy to a tailspin. Last weekend, Shoprite, a beneficiary of the absurdity in Nigeria’s economy, closed shop in Kano owing to what it classified as a poor business environment.
The retailing company may not have had a substantial impact on the Kano state’s economy but the reasons it adduced a sad reminder of how the dozens of multinational manufacturing companies such as Dunlop, Michelin and mostly recently P&G, GSK, Unliver and their likes have either exited the manufacturing sector or scaled down drastically, thus turning the country into a marketing outpost.
At the weekend, a chief executive of an indigenous manufacturing firm told The Guardian that he and many of his colleagues are “trapped” in the country and hanging on by a thread.
“Our operations are fast shrinking because proceeds of your sales can hardly buy sufficient inputs to replace the volumes you sold. The official foreign exchange market is non-existence. The parallel market cannot be used for a serious business model because the rates are not stable.
“Except you have overseas operations where you earn in dollars, it is difficult to fund imported raw materials. This is a serious challenge when you consider that most companies source over 80 per cent of inputs overseas,” the executive said.
An economist, Chiwuike Uba, a development economist, admitted yesterday that soaring inflation, as well as volatile and high FX, posed enormous challenges that would require “disruptive yet innovative policies” to address even as he described the floating of the naira as a failed attempt to arrest the free fall of the local currency.
“To reclaim economic stability, we must bolster our foreign exchange inflow through increased exports, judiciously manage and reduce imports by promoting local production and foster direct investments from Nigerians in diaspora… Until Nigerian factories operate at peak efficiency, we may continue to grapple with exchange rate challenges. Hence, targeted funding should be allocated to vital manufacturing industries, and policies promoting local patronage should be implemented to ensure stable markets and demand for domestic products.
“For instance, the revitalisation of the textile industry must be coupled with a mandate that mandates all educational institutions and government agencies to patronize textiles manufactured in Nigeria. Nigeria’s inflation is predominantly fueled by food inflation, money supply and exchange rate challenges. Thus, mitigating inflation will significantly hinge on addressing security challenges, promoting food production, and rectifying exchange rate issues,” the economist told The Guardian.
Another economist, David Adonri, hoped market reforms of last year would trigger inflation moderation this year as “market demand and supply adjust to flexible prices”. He argued that demand has been reasonably curtailed while there “closing the supply gap to satisfy pent-up demand may not be immediate”.
“The saving grace may come from the restoration of domestic refining, which will relieve the economy of excessive pressure on FX. On a sad note, however, is the deteriorating security situation, which may cause food inflation to remain high. The economy also requires fiscal impetus to drive higher domestic production to reduce imports and boost exports,” Adonri wrote in an email exchange.
Added to insecurity, divestment by the international oil companies (IOCs) could be another downside to the already burdened FX market, except the local investors jostling for the assets of the foreign companies would source funding from the international market.
Overall, the hope that 2024 could be the year of naira is waning, while national economic policies only double the speed at which this happens.
[Guardian]
Super Eagles head coach, Jose Peseiro says revenge is not on his mind ahead of his side’s 2023 Africa Cup of Nations Group A clash with Guinea-Bissau.
The Djurtus defeated the Super Eagles 1-0 in Abuja during the qualifiers.
Both teams will clash again at the Felix Houphouet Boigny Stadium, Abidjan, on Monday (today).
Peseiro said he is focused on helping the Super Eagles beat Baciro Cande’s men.
“We are not thinking about revenge but we are here to top the group and they are in our sights.
“We must do what has to be done. Guinea Bissau have no point and will play with freedom, and that is when a team becomes dangerous,” Peseiro said during pre-match press conference.
Nigeria occupy second position in the group with four points from two games.
A point will be enough for the Super Eagles to book a place in the Round of 16.
[DailyPost]
- Investors up stakes on sovereign assets
The Federal Government has raised about N2 billion from the latest issuance of the monthly retail savings bonds as investors continued to show strong appetite for sovereign securities.
The January 2024 tranches of the monthly retail bond issuance, otherwise known as Federal Government of Nigeria Savings Bond (FGNSB), were the first debt issuances by the government in the year.
Allotment reports at the weekend indicated that the government raised about N1.998 billion in two-year and three-year bonds. A total of N603.42 million was raised under the two-year bond while N1.394 billion was raised under the three-year bond.
The latest issuances represented double-digit increases on the previous allotments in December 2023. The allotment for two-year bonds represented an increase of 26.25 per cent on N477.98 million raised in December 2023 while the latest three-year bond issuance was an increase of 16.61 per cent on N1.196 billion recorded in previous month.
The Debt Management Office (DMO), which oversees government’s debt issuance and management, had offered the two tranches of FGNSBs of two-year and three-year tenors with coupons of 11.033 per cent and 12.033 per cent respectively. The January 2024 issuance is the 79th tranche of the savings bond, introduced in 2017.
The two-year and three-year sovereign retail bonds would mature on January 17, 2026 and January 17, 2027.
Minimum subscription to the pro-low savers bonds was N5,000 with maximum subscription per subscriber capped at N50 million. Application list for the bonds had closed on Friday January 12, 2024, with settlement date on January 17, 2024.
The FGNSBs are designed to have most of the features of the existing sovereign bond but with other benefits to the bondholder, including low amount of minimum subscription, listing on stock exchange and trading on the bonds.
It will also be backed by the full faith of the Federal Government of Nigeria and is therefore deemed risk-free.
The coupon is paid on a quarterly basis, providing investors with a regular stream of incomes. The coupon payment dates for the bonds being issued are April 17, July 17, October 17 and January 17.
The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilization of savings and investments. Minimum subscription to the FGNSB is usually N5, 000 while the bond pays coupon or interest rate on a quarterly basis.
Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
GTI Securities Limited, one of the authorised distribution agents for the FGNSB, had explained that the savings bonds help to deepen national savings culture while providing opportunity to Nigerians irrespective of income level to contribute to and benefit from national development.
According to the stockbroking firm, FGNSB enables Nigerians the opportunity to participate in and benefit from the favourable returns available in the capital market.
GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.
The bonds are usually listed on the stock exchange for trading, thus providing liquidity for investors who want to exit before maturity.
[TheNation]
Tessa Barton and Cole Herrmann lived in a 250-square-foot New York studio apartment, with a showerhead that spit brown water and a radiator capable of giving second-degree burns.
You’d never have known it from Barton’s Instagram account. At the time, in 2017, she was a freelance photographer — gaining followers by posting images of their living space that made their home life look aspirational.
She and Herrmann, a software engineer, realized they could bottle up her aesthetic into pre-made photo filters and sell them. Her followers could make their lives look Instagram-worthy — no fancy cameras or editing programs required.
That idea is now Tezza, a Los Angeles-based company that makes collage kits, apparel and its claim-to-fame photo editing app. The business, which the husband-and-wife duo run as co-CEOs, brought in $26.5 million in sales last year, according to documents reviewed by CNBC Make It.
Tezza has been profitable almost since its inception, the founders say, due to its lean business model. The editing features are time-consuming to make, but once they’re done, they bring in relatively passive revenue, giving Herrmann and Barton time and funds to create more features and expand Tezza into a larger lifestyle brand.
“There’s a way to be making money while you sleep,” Barton, 32, tells CNBC Make It.
A ‘naïve’ trial-and-error process
Barton used the name Tezza for her side hustles while attending the University of Utah. She worked as a wedding photographer and content creator for brands like Urban Outfitters, helping her build a following before influencing was considered a full-time career.
She and Herrmann got married, then moved to New York in 2016. Barton wanted to combine her side hustles into something that helped non-professional creatives explore new kinds of art, but didn’t know where to start.
Together, the couple tried selling books, and invested in a denim jacket line that never officially launched. As those early business ventures struggled, they noticed that lots of people were engaging with social media posts of Barton’s life, including a collage wall of photographs and artwork above their bed.
Barton and her photo collage wall, in the couple’s New York studio apartment.
Tezza
In response, they started designing and selling photo collage kits — made up of printed quote cards, artwork and photography — so people could decorate their homes like Barton and Herrmann’s studio.
The collage kits went viral over the next year, but they were costly and time-consuming, and the physical packages took up a lot of space in their $2,800-per-month studio apartment.
“We just naively thought, ’People are into this, [so] we’ll make them and they’ll keep flying off the shelves,” Herrmann, 31, says. “But with a physical product, we had to buy inventory, we had to fulfill orders and ship them out. We knew if we kept growing, we’d eventually need a warehouse.”
‘Done is better than perfect’
One day, Barton realized something: Her followers didn’t just like the content of her photos. They liked how the photos looked. With their pre-owned cameras and editing tools, the couple didn’t have to spend any money to build a set of pre-made filters available for purchase on Adobe Lightroom.
After selling the filters through Lightroom for 15 months, Barton and Herrmann launched the Tezza app — with bright red, chunky fonts to stand out from its clean-cut competitors — in June 2018.
For four years, the couple and a single assistant were responsible for Tezza’s product design, social media presence and marketing. Today, the company currently has 14 employees, including Barton and Herrmann.
Tezza is best known as a photo editing app, currently ranking between competitors Lightroom and VSCO on Apple’s app store. Barton and Herrmann want to expand the brand into physical spaces, they say: They design and sell apparel, for example, and launched a physical magazineduring New York’s fall fashion week last year.
Barton, pictured with a copy of Tezza’s first physical magazine, which published in September 2023.
Tezza
But the app is still the company’s main source of income. Its free version offers a limited number of filters and editing tools, and users who want more pay either $5.99 or $9.99 per month for tiered access to Tezza’s full photo and video editing suite. That includes new filters which Barton and Herrmann continue to develop today.
Together, they make a good team, they say: Barton’s perfectionist streak from her freelance photography days balances out against Herrmann’s mantra that “done is better than perfect.”
“You learn so much [more] by just getting stuff out,” Barton says. “Being on social media, people will just tell you what they like and don’t like. Then, you can improve as you go and let go of the fear of launching something.”