09 Jul

Daily Watch – PMI expands in June, MTN’s July IPO plans cool off

  • The CBN said the manufacturing sector expanded in June, a 15th straight month of expansion. The regulator, which released its PMI survey report, said the index stood at 57.0 index points. In a statement, the bank said that, “of the 14 sub-sectors surveyed, 10 reported growth in the review month in the following order: paper products; furniture & related products; printing & related support activities; food, beverage & tobacco products; plastics & rubber products; electrical equipment; textile, apparel, leather & footwear; chemical & pharmaceutical products; petroleum & coal products and nonmetallic mineral products.” Transportation equipment, fabricated metal products, primary metal, and cement declined in the month. A separate CBN report, the Monthly Business Expectations Survey Report for May put business confidence index at 28.9 points, indicating its 650 respondents’ overall optimism on the economy, though it was unchanged from April.
  • MTN Nigeria is yet to file its application for an IPO, Nigeria’s securities regulator said on Sunday, a much-anticipated share listing that could value the business at around $5 billion and help revitalise the local stock market. The SEC statement came after media reports last week that indicated that the local arm of the South African telecoms giant was ready for its shares to be listed. “Neither MTN Nigeria Limited nor any of its advisers or representatives have filed any application with the SEC regarding the said IPO,” the regulator said. According to a February Reuters report, pre-IPO documents indicated that the telco planned to debut by July and raise at least $400 million to cut debt for its Nigeria unit, valued then at $5.23 billion. Sources say the company wants to issue shares electronically. That has not been done before in Nigeria and needs new systems put in place to allow it.
  • The Dangote Group says its $10 billion oil refinery currently under construction should be completed by December 2019. Executive Director Devakumar Edwin told Reuters that the refinery will account for half of the conglomerate’s assets when it is finished. Edwin said the oil refinery, with a capacity of 650,000 barrels per day, would also target export markets; the company has held talks with firms including Vitol and Shell over the supply of crude and lifting of petroleum products for sale abroad. Dangote has acquired two oil fields in Nigeria from Shell to help supply the refinery. Edwin said the first phase of the 1.5 million tonne capacity fertiliser plant, on the same Lagos site, would be completed in September and start operating in December. The second line, also 1.5 million tonnes, will start four months later, he added.
  • Hadi Sirika, junior aviation minister, says a proposed national airline for Nigeria would be unveiled before the end of the year. Sirika, a former pilot, gave the assurance while receiving the outline business case certificate of compliance for the establishment of the airline from Chidi Izuwah, Director-General of the Infrastructure Concession Regulatory Commission. The minister said the proposed airline will gulp $8.8 million in preliminary costs and $300 million in direct take-off costs. According to Sirika, Nigeria will receive the first set of five planes for the airliner on 19 December.
  • Parts of an NNPC Minna depot in Pogo has been destroyed by a fire incident. Daily Trust reports that there were no casualties, even as emergency and security officials said they are yet to take stock of items lost in the disaster. The Public Relations Officer of the Nigerian Security and Civil Defence Corps, Ibrahim Yahaya, he said: “for now we have not been able to ascertain casualties.”