01 Jun

Daily Watch – “Private sector scuttled Nigeria’s AfCTA signing”, Diamler invests $175 million in Taxify

  • Vice President Yemi Osinbajo says Nigeria did not sign the African Free Continental Trade Agreement because the FG wanted to satisfy the private sector. Speaking on Thursday at the FT Nigeria Summit, Osinbajo said the private sector was not happy with the specifics of the agreement. “With the free trade agreement, you know Nigeria is an important market. There are some states waiting to tap into that big Nigerian market,” he said. “Nigeria has one of the most vibrant private sectors and many felt as we went into the process that sufficient consultations hadn’t been done.” At the 2018 African Union summit, 44 African countries signed the agreement which is the largest since the creation of the World Trade Organisation in 1995.
  • The Senate has confirmed four non-executive directors for the CBN board. President Muhammadu Buhari had sent five names to the Senate in April 2017 but only four were confirmed on Thursday. The nominees were confirmed after Rafiu Ibrahim, chairman of the Senate committee on banking presented a report. Ibrahim explained that Abdu Abubakar, the unconfirmed nominee failed the committee’s integrity test. After Ibrahim finished presenting his report, Deputy Senate President Ike Ekweremadu said the issues surrounding the non-confirmation of Abubakar should be revisited by the committee.
  • The NSE has suspended trading on shares belonging to Paints and Coating Manufacturers PLC. According to a circular released by the bourse, the suspension is to allow the company to determine which shareholders are qualified to receive scheme shares ahead of the company’s voluntary delisting. At the close of Monday trading, the company’s shares closed at 59 kobo. The company’s capitalisation is pegged at ₦467.8 million with 792.9 million shares. In March 2017, AMCON sold its 7.4 per cent equity stake in the company to Bozfeat Ventures at a negotiated price of ₦1.05 per share. The divestment involved the transfer of a total of 58.66 million ordinary shares of 50 kobo each.
  • Daimler AG, the parent company of Mercedes-Benz, alongside other investors have invested $175 million in the cab-hailing platform, Taxify. This investment raises Taxify’s value to $1 billion. Taxify, a 2013 Estonian start-up, says it is looking to expand operations beyond the current 40 cities in Africa and Europe. As a result of the investment, Damlier will join the board of Taxify. “Among all of the carmakers, we saw Daimler as the most progressive in both ride-sharing and autonomous cars,” Markus Villig, Taxify’s founder, said. Taxify recently introduced a security button on its driver app in Nigeria to check increasing reports of harassment between drivers and riders.