- NERC is set to release a minimum recapitalisation level required to be met by core investors in the power sector. It has identified capital adequacy as a major issue in the power sector, pointing out that the successor companies of PHCN were handed over to the core investors without any liability. As a result, after three years of operating the successor companies, there have been colossal losses, necessitating the need to set minimum capital adequacy requirement by the investors. NERC’s Vice Chairman, Sanusi Garba, gave the indication at the 14th Power Sector Stakeholders’ meeting at the National Control Centre, Power Line, Osogbo, Osun State. Garba did not indicate how much the core investors in the GenCos, and DisCos are expected to beef up their capitalisation, or the timeframe for its actualisation.
- The UNDP on Tuesday ranked Nigeria 152 out of 188 countries surveyed in its 2016 Global Human Development Index report. The 2016 Human Development Report focuses on those communities that have been left behind, despite development progress over the last 25 years, recognising acutely disadvantaged groups including women and girls, rural communities, and persons with disabilities. The report saw the country retaining its 152nd position, which it occupied in 2015, with a human development index of 0.527 out of the possible index figure of one. The UNDP’s Economic Adviser for Nigeria and ECOWAS, Ojijo Odhiambo, said that despite Nigeria’s 152nd ranking, the country recorded some improvement on a number of points that made up the index. He, however, stated that there was a need for the country to redouble its effort in making sure that it addressed the factors that were impeding its improvement on the index including inequality, education, discrimination among women, promotion of social inclusion and accountability, as well as the upholding of human rights.
- Dangote Flour Mills has exited the noodles business and sold its assets to Dufil Prima Foods, makers of Indomie noodles, saying it no longer consider it as strategic. Dangote Flour Mills said in order to smoothen the transition, it had offered Dufil the use of some of its facilities on an interim basis. The noodles business was part of the DFM, which the Dangote Group recently reacquired from Tiger Brands. The Group Managing Director, Dangote Flour Mills, Thabo Mabo, said the divestment was part of a strategy of focusing on core areas of flour and pasta production, where the company has a substantial market share. He said that with the divestment, Dangote Flour would now focus on its strengths in flour and pasta and become more profitable by improving in areas of quality, distribution and marketing. The transaction, which became effective last Monday, according to him, is a win-win situation for Dangote Flour Mills, Dufil Prima Foods and workers of Dangote Noodles. Under the terms of the sales agreement, Dufil Prima Foods will continue to produce and sell noodles under the brand name, ‘Dangote Noodles’ for two years before changing the brand name.
- Ecobank Transnational Incorporated posted a loss after tax of $205 million (₦52.6 billion) for the year ended December 31, 2016, as against a profit of $107.5 million (₦21.253 billion) in 2015. The pan-African banking institution, in its audited full-year 2016 results, filed with the NSE, said its gross earnings fell by six percent to $2.6 billion (increased by 23 percent to ₦665 billion). Its operating profit before impairment losses dropped by 0.5 percent to $735.1 million (up 29 percent to ₦188.6 billion), with a loss before tax of $131.3 million (₦33.7 billion). ETI’s total assets declined by 13 percent to $20.5 billion (up 33 percent to ₦6.3 trillion), while loans and advances to customers dipped by 17 percent to $9.3 billion (up 27 percent to ₦2.8 trillion). It said deposits from customers fell by 18 percent to $13.5 billion (a 26 percent rise in naira terms to ₦4.1 trillion), while total equity dropped by 30 percent to $1.8 billion (up seven percent to ₦538 billion). The Group Chief Executive Officer, ETI, Ade Ayeyemi, said, “The financial results show the benefits of the progress of our strategy but also reflect the frustrating reality of poor financial performance in announcing a loss before tax of $131 million and revenue of $2 billion for the year ended 31 December 2016.”
- Unilever Nigeria results for the quarter ending 31st March 2017 showed continued strong growth. The company posted a turnover and profit after tax of ₦22.2 billion and ₦1.6 billion respectively with improvements across the board. The growth in turnover has a strong volume component with a 32 percent growth in turnover from ₦16.8 billion in Q1 2016 to ₦22.2 billion in Q1 2017, while the operating costs increased by 31% to ₦19.4 billion for the period ended March 2017 from ₦14.9 billion recorded in the corresponding period in 2016. According to a company statement, Unilever Nigeria, “will not relent in its efforts to satisfy its consumers”. It continued, “as a company, we will continue to deploy best practice marketing strategies, with a high level of operational intensity; in our continued investment in commercial and factory operations to expand our capacity and grow our market share”.