Apple (AAPL) is anticipated to unveil a “mixed reality” headset that offers both virtual reality and augmented reality, a technology that overlays virtual images on live video of the real world, at its Worldwide Developers Conference, which gets underway Monday at its Cupertino, California, campus.
The most ambitious piece of hardware Apple has introduced in years may be unveiled in the coming hours.
An AR/VR headset would be Apple’s most significant hardware product launch since the introduction of the Apple Watch in 2015. It might usher in a new age for the business and potentially transform how millions of people interact with computers and their surroundings.
Tim Cook, the CEO of Apple, has long displayed interest in augmented reality and touted its potential to improve interpersonal interaction and teamwork.
Apple’s decision, though, is not a sure thing. Over the years, several tech companies have had difficulty getting headsets accepted by the general public. The product’s market is still quite small.
One of the numerous things anticipated during Apple’s developer event is the headset.
Apple will once again showcase a broad range of software changes that will influence how users interact with its most well-known products, including as the iPhone and Apple Watch.
In order to keep up with a resurgent arms race over the technology in Silicon Valley, Apple may potentially hint how it intends to incorporate AI into more of its goods and services.
The ceremony will be broadcast live on YouTube and Apple’s website. It is scheduled to begin at 10:00 PT/12:30 ET.
In anticipation of the main market auction sales at the Central Bank of Nigeria (CBN), the secondary market purchasing of Nigerian Treasury bills (NTB) increased thanks to a healthy liquidity level.
On Wednesday, the CBN is slated to refinance debts worth a total of N182.85 billion. Numerous market analysts have predicted that the liquidity level will decline within the next week in their own forecasts.
According to Cowry Asset Management’s market research, as liquidity grew and banks with excess cash wanted lower rates, the Nigerian Inter-Bank Offered Rate decreased across all tenor buckets.
Benchmark short-term rates changed in a variety of directions. The overnight lending rate decreased by 37 basis points to 11.88% while the open repo rate remained constant at 11.50%. Strong liquidity brought rates down on a weekly comparison. Due to the increased system liquidity from the previous week, the overnight rate decreased by 138 basis points.
Additional inflows from OMO maturities at N20.00 billion and FGN bond coupon payments worth N5.63 billion helped to maintain the market’s liquidity level. The average system liquidity concluded at a lower net long position of N184.17 billion, as compared to the net long position of N339.93 billion the previous week, according to Cordros Capital Limited’s market note.
Analysts predicted that system liquidity would be under pressure the next week in the absence of any sizable inflows, forcing the overnight lending rate to trend higher than it is at the moment.
In the secondary market, Nigerian Treasury bills rallied again as the healthy system liquidity continued to support buying interest for bills across the market. Consequently, the average yield contracted by 44 basis points to 6.4%, according to fixed income analysts report reviewed by MarketForces Africa. >> Nigerian Treasury Bills Yield Rises to 7%
Analysts at Cordros Capital said they noticed particular interest for the 97-day to maturity (109bps), 251-day to maturity (-144bps), and 300-day to maturity (-100bps) bills, respectively.
Buying interest in 97-day-to-maturity bills dragged yield lower by 109 basis points. Investors’ interest in 251 days to maturity dragged the yield curve by 144 basis points. Then, the 200-day to-maturity yield declined by 1%.
“We believe yields in the NTB secondary market will tilt northwards, following our expectations for depressed system liquidity.
“Notwithstanding, we expect market participants to shift focus to the NTB PMA on Wednesday where the CBN is scheduled to roll over N182.85 billion worth of bills”, analysts at Cordros Capital projected.
Nigerian Breweries Plc- Nigeria’s foremost brewing company has concluded plans to acquire 80% stake in Distell Wines and Spirits Nigeria Limited as part of efforts to capture significant growth opportunities in the wines and spirits segment of the brewing industry.
The announcement is contained in a notification of proposal sent to Nigeria Exchange Limited and signed by the company secretary, Uaboi Agbebaku, on Wednesday, May 31, 2023
Nigerian Breweries Plc received the offer from Heineken Beverages (Holdings) Limited to buy or acquire 80% majority interests in Distell Wines & Spirits Nigeria Limited (“Distell Nigeria”).
“The Board resolved to consider the offer in detail with support from external legal and financial advisers and thereafter make a decision thereon in the coming weeks.
“The outcome of the decision will be communicated in due course,” said Agbebaku.
Distell Nigeria is a subsidiary of Distell International Limited- a company 100% owned by Heineken Beverages. Distell International Limited holds 80% shareholding in Distell Nigeria, which was founded in 2018 with its headquarters in Lagos, Nigeria.
Distell Nigeria is involved in the local production of wines and ciders and the importation of wines, spirits, and flavored alcoholic beverages from Distell Group in South Africa.
The list of brands in its portfolio includes Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna.
This acquisition will further strengthen the company’s leadership position in the brewing segment of the Nigerian manufacturing sector.
Airlines will return to profit and fly a near-record 4.35 billion people this year, according to, but the International Air Transport Association (IATA) sector’s post-pandemic recovery remains weak.
According to the International Air Transport Association (IATA), the business is expected to earn $9.8 billion in net profits in 2023, more than doubling prior forecasts, thanks to the lifting of China’s Covid restrictions.
According to the group, its 2022 losses are half as terrible as earlier predicted at $3.6 billion.
“Airline financial performance in 2023 is exceeding expectations,” IATA director general Willie Walsh said during the organization’s annual general meeting in Istanbul.
“Stronger profitability is supported by several positive developments. China lifted Covid-19 restrictions earlier in the year than anticipated,” Walsh said.
While jet fuel prices remain high, he says they have reduced in the first half of the year.
Inflation rose globally during Russia’s invasion of Ukraine in February 2022, sending energy costs skyrocketing, but oil and natural gas prices have since decreased.
“On the cost side, there is some relief,” the IATA director said.
“Economic uncertainties have not dampened the desire to travel, even as ticket prices absorbed elevated fuel costs,” he added.
At The International Banker Awards, Onyeagwu Won Best CEO
In the International Banker 2023 Banking Awards, Dr. Ebenezer Onyeagwu, Group Managing Director and Chief Executive Officer of Zenith Bank Plc, won the category for “Best Banking CEO of the Year in Africa.”
According to a release, Onyeagwu shared the honor with people and banks from the Middle East and Africa at the award ceremony, which was covered in the International Banker Magazine’s Spring 2023 issue.
Onyeagwu expressed his gratitude for the honor and thanked the International Banker’s publishers for selecting him as the ‘Best Banking CEO of the Year in Africa’.
The bank’s status as a premier financial institution in Nigeria and on the African continent is reflected in this award, he said. It also demonstrates our dedication to the values of sustainability and strong ethical standards, which have become central to our institution’s overall strategy.
The bank’s management team and personnel served as the foundation for his accomplishments and success as CEO, and he dedicated the award to Jim Ovia, the bank’s founder and chairman, for their guidance and mentoring. He also thanked the bank’s clients for making Zenith Bank their go-to financial institution.
According to the press release, Onyeagwu has won numerous awards, including Bank CEO of the Year (2019) by Champion Newspaper, Bank CEO of the Year (2020, 2021, and 2022) by BusinessDay Newspaper, CEO of the Year (2020 and 2021) – SERAS Awards, and CEO of the Year (2022) – Leadership Newspaper.
“Dr. Onyeagwu has led Zenith Bank to great accomplishments and milestones in financial performance (including an increase of 47% in the bank’s market capitalization in just four years), financial inclusion, corporate governance, and sustainability.
In recognition of his outstanding accomplishments as Group Managing Director/CEO of Zenith Bank and his contributions to the expansion of the financial services industry in Nigeria and across the African continent, it was added that he was awarded a doctorate degree in business administration in March by the University of Nigeria, Nsukka, Nigeria’s first indigenous university. The honor was presented at the University’s 50th convocation event.
In spite of persistent demand and mounting inflationary pressures, the average yield on Federal Government of Nigeria (FGN) bonds decreased, lowering the actual return on naira assets.
Spot rates on investments in government bills, bonds, and other borrowing instruments are thought to be underpriced even if interest, inflation, and currency rates have been trending higher.
Financial repression was the term used by certain market skeptics. However, Nigerian investment banker and CEO of the Dunn Loren Merrifield Group Sonnie Ayere told MarketForces Africa that the government does not need to pay premiums on risk-free securities.
Following President Bola Tinubu’s market-sensitive inauguration speech, Nigeria’s local debt market observed a rise in demand for gilt-edged securities, reflecting confidence.
According to analysts, investors in FGN bonds could expect to see a change in the yield curve to coincide with shifting market dynamics and the anticipation of significant government borrowing, possibly in the second half of 2023.
In their market note, analysts at Cordros Capital stated, “We retain our view that frontloading of significant borrowings for the year by the FG will result in an uptick in bond yields, as investors demand higher yields in the face of elevated supply.”
Nigeria has always demonstrated a preference for local debt capital market borrowings over pricey eurobonds ever since the global disruption that began in the early months of 2022.
The fight against global inflation has changed interest rate pricing across markets, making borrowing in foreign currencies far more expensive than it was previously in the euro market. According to MarketForces Africa, a significant portion of Nigeria’s state debt is owing to domestic investors, significantly lowering external concerns.
The average yield across all instruments decreased by 10 basis points to 13.9% as a result of the bond market rally that followed President Bola Tinubu’s market-sensitive inauguration speech, according to data from investment banking firms.
Fund/Asset managers continue to allocate money to Nigerian debt papers notwithstanding the negative yield brought on by the inflation risk of government investments. The continuous advance in the stock market was accompanied by buying activity, indicating bullish expectations in the face of increasing inflation, rising interest rates, and declining local currencies.
Numerous market professionals informed MarketForces Africa that, despite lesser risk, investment in the debt market has become less appealing due to growing headline inflation and increased interest rates.
The secondary market for government assets in Nigeria continued to trend upwards last week as investors sought for high-yielding FGN bonds throughout the curve.
Cordros Capital observed that the average yield decreased throughout the benchmark curve in the short (-1bp), mid (-12bps), and long (-8bps) segments. Following bargain-hunting in the bonds due in FEB 2028, NOV 2029, and JAN 2042, respectively, the yield curve started to drop.
The FEB-2028 bond instrument’s yield decreased by 20 basis points as a result of increased demand; the NOV-2029 paper’s yield dropped by 22 basis points, and the JAN-2042 paper’s yield dropped by 18 basis points.
The borrowing rates for the 10-year, 16.29% FGN MAR 2027, and the 15-year, 12.50% FGN MAR 2035 bonds remained steady at 12.53% and 14.81%, respectively, according to Cowry Asset Management Limited analysts who reviewed the market.
The longer end of the yield curve saw positive action when the Debt Management Office (DMO) released a revised bond calendar for the second quarter of 2023, according to the investment banking business.
MarketForces Africa said that the Nigerian debt agency changed the previously provided 2028 FGN bond, 2032 FGN bond, 2042 FGN bond, and 2050 FGN bonds with 2029, 2033, 2042, and 2053 FGN bonds in order to change maturities.
According to Cowry Asset, the 30-year, 12.98% FGN MAR 2050 paper bonds (the 50s bond that was replaced) increased by N0.42, yielding 15.58% instead of 15.66%.
The 20-year, 16.25% FGN APR 2037 bond also increased in value by N0.87, with a corresponding 15 basis point drop in yield to 15.43%.
According to Afrinvest’s monthly report, the performance of the bonds market in May was influenced by a market-stimulating atmosphere that sparked purchasing interest and liquidity as a result of inflows totaling $408.4 billion.
The money market’s inflow was $887.6 billion less than that of April, which had an impact on the secondary market’s average government bond yield falling by 38 basis points to 13.5% for the month.
Meanwhile, Afrinvest noted that the FMDQ/S&P Nigerian Sovereign Bond index rose 1.0% month on month, saying that short-term bonds recorded the most demand across tenors as average yields pared 282 basis points.
The yield on mid-dated bonds closed flat and long-dated bonds saw an average yield rise of 15 basis points in May 2023, according to the investment banking firm’s market report. In line with its calendar, the DMO offered 2028, 2032, 2042, and 2050 sovereign bonds at ₦90.0 billion apiece at the primary market.
All the instruments were undersubscribed, save 2050 FGN bond instrument which achieved a bid-to-cover ratio of 3.8x, though allotment stood below bid levels, according to analysts’ note.
Compared to the April auction, marginal rates increased by 10 basis points apiece for the 2028 and 2032 instruments to 14.1% and 14.9% respectively, rate on the 2042 bond trended higher by 29 basis points at 10.95% while 2050 remained sticky at 15.8%.
This month, analysts said they anticipate a minute liquidity inflow worth ₦354.4 billion to hit the domestic bond space which would partly be mopped up by the reopening of the APR 2029 and new issuance of the JUNE 2033, 2038, and 2053 FGN bonds.
“…we expect a muted performance following repressed liquidity and investors staying on the sideline ahead of the auction”, Afrinvest projected.
A drawback of expanding the consumer economy has been noticed as Nigerians start to redraw their preference scale in the face of economic headwinds in the country. Market experts stated that the loss of gasoline subsidies will put a lot of family budgets under stress.
As firms start to rationalize headcounts, they highlighted that the naira has been losing buying power and that businesses are borrowing at higher rates despite the high unemployment rate. They predict that unemployment will peak at this point.
“Thanks to the survival instincts of average Nigerians, the pressure could, however, become unbearable without palliative measures to cushion the immediate effects of high fuel price”, LSintelligence Associates said in a brief.
The spike in food prices caused Nigeria’s headline inflation rate to soar to 22.22 percent in April 2023, the largest rate increase in 17 years. The pressures from the naira crisis were also absorbed by the rapid headline inflation, which ultimately reduced first-quarter GDP growth.
Analysts remarked that the first quarter’s growth was constrained by pressure on the consumption side, and they predicted that the withdrawal of fuel subsidies would significantly increase inflation in 2023.
Due to the federal government’s decision to liberalize the downstream oil sector, the price of gasoline at the pump has increased by more than 250%. Nigeria’s economic growth slowed down in the first quarter of the year, falling by 1.21% point to 2.31% real year-over-year. The major driver of economic growth in Q1 2023 was the services sector, contributing a total of 57.29% to GDP. The agriculture sector’s contribution to GDP declined in Q1 2023 by 10%.
Additionally, a negative quarter-over-quarter growth of 28.83% is recorded. Construction drove a 22% quarter over quarter rise in industries’ GDP contributions. The industrial sectors expand by 2.78% and 1.63%, respectively, despite uncertainty fueled by rising energy prices.
The research stated that the oil sector’s contribution to GDP climbed by 30% quarter over quarter as oil output increased in Q1 2023 to 1.51mbpd from 1.34mbpd in Q4 2022, one of Nigeria’s main revenue sources.
Despite consistent rises in monetary policy rates over the last year, headline inflation remained on an upward trend. Households are being forced to reduce consumption due to rising food prices. Analysts predicted that the tendency will limit growth and reset economic productivity. This expectation could be reversed if the Nigerian government implements measures to reduce economic pressure that has shifted the misery index upward.
The removal of subsidies will reduce fuel consumption drastically as transport and logistics begin to raise prices. The increase in prices will filter into the food market despite the low-income earnings condition of the majority of Nigerians.
According to the government report, more than 133 Nigerians are vulnerable despite large social intervention spending over the last eight years under former president, Muhammadu Buhari.
A large number of people will struggle to meet their daily needs in the next few months as the market begins to dictate petrol pump prices, analysts told MarketForces.
“A slowdown in consumption economy will drag down growth in 2023 if there are no palliative measures to immediately reduce the negative effect that subsidy will have on foods and other household basic needs”, LSintelligence Associates stated in the note.
Deposit Money Banks (DBMs) and commercial banks’ loans from the Central Bank of Nigeria (CBN) surged to N7.5 trillion in the first five months of 2023, up 276 percent from the N1.99 trillion reported in the first five months of 2022 due to a shortage of liquidity in the banking industry.
According to data from the CBN, merchant banks and DMBs borrowed much more money through the Standing Lending Facility (SLF) as banks struggled with the effects of the new naira notes policy that will take effect in 2022, among other things.
Due to the country’s demonetisation program, which led to chronic cash shortages, DMBs and merchant banks’ borrowings from the CBN increased by 276 percent Year on Year (YoY), according to an analysis of CBN data.
This was made by a senior manager at a prominent tier-2 bank about the CBN’s aggressive liquidity mop-up strategy using the Cash Reserve Ratio (CRR).
Through the SLF, the CBN extends loans to merchant banks and DMBs at an interest rate that is 100 basis points higher than the MPR.
The CBN considers standing facilities (deposit and lending) to be tools for managing liquidity. They provide a way to invest extra money overnight and to settle any discrepancies at the close of each working day.
SLF, a short-term lending window provided by the top banking regulatory authority, allows merchant banks and DMBs to access cash for their ongoing business operations.
On October 26, 2022, the CBN announced that the N200, N500, and N1,000 notes will be redesigned and brought into circulation starting on December 15, 2022, and that DMBs were instructed to return the CBN’s current denominations of those notes.
The CBN Governor, Godwin Emefiele, stated at the first Monetary Policy Committee (MPC) in 2023 that money market rates fluctuated below and within the standing facilities window’s asymmetric corridor due to shifting liquidity conditions in the banking system.
He stated that the CBN had been vigorous in its involvement during the first two months of 2023. When compared to last year, the CBN’s CRR debits have climbed dramatically this year. When CBN debits its CRR every two weeks, DMBs always stop at the SLF window.
Analysts point out that DMBs and merchant banks were no longer benefiting from the customary cash deposits that often come from firms and individuals that create substantial amounts of cash through relationships with various third parties, and they relate the rise in SLF to the lack of available cash.
“The issue brought about by CBN’s poor management of the currency redesign initiative and purposeful cash constraint has severely hurt the economy. “The Chief Executive Officer of Wyoming Capital and Partners, Mr. Tajudeen Olayinka, remarked that a program that was anticipated to be positive abruptly became negative because CBN did not comprehend the dynamics of deliberate cash scarcity as an uncommon monetary management instrument.
“The most significant factor is the increasing level of threat in the business environment in Nigeria, resulting from: insecurity, supply chain problems, rising inflation, and poor purchasing power, low level of productivity, rising unemployment, liquidity overhang, and a scarcity of risk-free financial instruments,” says Olayinka.
He continued, “As a result, most banks prefer to be penalized by CBN for exceeding the LDR limit rather than providing credit to companies that are struggling to survive. It all comes down to controlling risk.
“DMBs would initially turn to the intervention when the CBN mop-ups liquidity before they create capacity once more. The CRR debit is a way to limit banks’ ability to extend access to cash into the system and regulate the amount of money in circulation as a result of the rising rate of inflation.
Another analyst who did not want his name published added, “In the short term, this policy reduces the amount of profits DMBs can make from excessive credit extension and ensures DMBs will always have the right amount of cash and not run out of funds when depositors require funds for their personal needs.
For his part, Mr. David Adnori, Vice President of Highcap Securities Limited, attributed rising DMBS borrowing from CBN to customer demand.
He stated, “It’s possible that some DMBs are overworked and needed money to fulfill existing obligations. These two factors might have been the main drivers of DMBs’ increased borrowing from the CBN.
According to Adnori, a rise in MPR and the naira design strategy forced merchant banks and DMBs to deposit money with the CBN at a competitive interest rate.
In the meantime, a research found that merchant banks’ and DMBs’ deposits with the CBN increased throughout the time due to the nation’s political unrest.
Deposits with the CBN were N2.1 trillion in the reviewed period, up 5.4% YoY from N1.99 trillion in the similar period of 2022.
Following President Bola Tinubu’s inauguration speech, which suggested that economic changes are on the way in Africa’s largest economy by gross domestic product, the Nigerian Exchange (NGX) soared.
The market-sensitive speech improved investor mood in shares on the first trading day following the transfer, leading to a gain of more than N1.5 trillion. According to Tinubu, the era of fuel subsidies has ended and a market clearing exchange rate would be adopted.
The local stock exchange increased for five straight trading days. The powerful buy increased market performance metrics by 5.38% from the prior week. Year-to-date (YTD) returns climbed up to 8.92%, according to market statistics from the local exchange, as investors’ wealth increased by 1.55 trillion in the four trading sessions that concluded on Friday.
According to stock brokers at Atlass Portfolios Limited, the market index, or All-Share Index, increased by 14.57 basis points, or a rise of +0.03%, to close at 55,822.82 points. The total volume and total value exchanged on Friday surged dramatically, up by +16.80% and +6.81%, respectively, according to trading statistics, indicating an increase in stock market activity.
According to stockbrokers’ records, 7,457 transactions totaling about 455.76 million units worth $6,117.55 million took place on the domestic exchange. With 22.57% of the total amount of transactions, FBNH was the stock that was most actively traded. The top 5 on the volume chart were made up of the financial services group, ACCESSCORP (12.23%), UBA (10.72%), ZENITH BANK (4.81%), and FIDELITYBK (4.00%).
According to market statistics, Ticker: FBNH, which accounted for 22.89% of all trades on the exchange, was the stock that was most often traded in value terms.
With a price increase of 10.00 percent on Friday, STANBIC headed the list of advancers, followed by MRS (9.92%), CONOIL (+9.73%), ETERNA (+9.47%), PZ (+8.82%), and twenty-four other stocks. According to Atlass Portfolios Limited, 26 equities decreased in value, with FTNCOCOA being the worst performer with a price decline of -9.59% to finish at $0.66.
UPDC declined by 8.93%, CHAMS slumped by 8.89%, MBENEFIT dipped by 7.69%, and STERLINGNG lost 7.56% of its market valuation. Amidst rallies, the market breadth closed positive, recording 29 gainers and 26 losers.
The Nigerian Exchange indices or sector performance closed positive, as three of the five major market sectors were up, led by the Oil & Gas sector which gained 2.15%.
The index was followed by the Insurance sector, up by 0.38%, and the consumer goods sector which rose by +0.09%, while the Banking and Industrial sectors dropped by -1.55% and -0.05% respectively.
Overall, equities market capitalization surged on Friday by ₦7.94 billion, representing a slight growth of +0.03% to close at ₦30,395.87 trillion. #NGX Gains N1.55trn as Tinubu Pro-Market Agenda Boosts Sentiment.
The Central Bank of Nigeria’s (CBN) capital restriction mechanism is making it harder and harder for international airlines to get their money back. IATA, the international air transport association, reports that the total amount of frozen cash has increased to $812.2 million.
IATA reports that from $1.55 billion in April 2022 to $2.27 billion in April 2023, blocked funds increased by 47% worldwide. Airlines have warned to avoid using Nigerian airspace.
The increase in blocked cash suggests that airlines are having trouble remitting their profits from specific regions, which makes it difficult to maintain the vital connectedness that fosters global economic growth and job creation. IATA’s Director-General, Willie Walsh, emphasized the importance of resolving this issue.
“Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets,” Walsh said.
“Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”
According to current estimates by IATA, an alarming 68.0% of all banned money are accounted for by five nations, including Nigeria. Nigeria ($812.2 million), Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million) are the four nations in question.
IATA has asked governments to abide by treaty responsibilities and international agreements that permit airlines to repatriate money made from ticket sales, the leasing of cargo space, and other operations in response to this circumstance.
The stability and future of the aviation sector may be further jeopardized by noncompliance.
“IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities,” Walsh restated.
OOPEC+ members and non-members has agreed to reduce crude oil production levels in order to maintain the stability of the world oil market, but they left Nigeria, Congo, and Angola free to continue producing as much as possible to meet their OPEC quota of 2023.
However, Saudi Arabia, a significant oil producer and OPEC member, voluntarily reduced its production by an additional 1 million barrels per day as part of an agreement reached by OPEC+ after hours of difficult negotiations, according to Bloomberg.
Abdulaziz bin Salman, the Saudi Arabian minister of energy, surprised everyone by announcing the cut in a statement. The most significant aspect of the pact, which also calls for extending voluntary reduction through 2024, is the Saudi move.
At the 35th Joint Ministerial Monitoring Committee Meeting of OPEC, held on Sunday in Vienna, Austria, Nigeria and other OPEC and non-OPEC members gathered.
Additionally, Nigeria, Congo, and Angola have agreed that their respective production quotas for 2024 will be based on the highest production levels for the previous six months, from November 2022 to April 2023.
It was reported that the head of the Nigerian delegation at the conference stated that OPEC has also decided to permit these nations to keep producing as much as possible to reach their OPEC quota by 2023.
In February 2023, Nigeria reached its greatest crude oil production level of 1.38 million barrels per day. However, according to the most recent development, Nigeria can increase its output to reach its OPEC quota of 1.74 million barrels per day and then be capped at 10% less than its quota for 2024.
According to the statement, the Nigerian delegation was convinced that the current security operation, which is being led by President Bola Tinubu, will allow the country’s output to be restored to 1.58 million barrels per day, with the addition of condensate at a rate of roughly 400,000 barrels per day.
The statement continued, “This will eventually allow Nigeria to produce about two million barrels per day of crude oil and gas in 2024.”
Before the conference, crude oil prices were already rising, but on Friday afternoon they rose further, pushing Brent crude to $76.32 at 4:20 pm, an increase of $2.06 a barrel for the day.
The Nigerian National Petroleum Company Limited (NNPC), has disclosed the ending of its fuel importation monopoly.
In an interview with Reuters, where this development was disclosed, Mele Kyari, the group chief executive officer of NNPC, also stated that the state-owned oil corporation was winding down crude oil swap contracts with traders and will pay cash for petrol imports as private companies could begin importing petrol as soon as this month.
“In the last four months, we practically terminated all DSDP contracts. And we now have an arm’s-length process where we can pay cash for the imports,” Kyari was quoted as saying.
“This is the first time NNPC has said it is terminating crude swap contracts. By importing less gasoline as private companies import the bulk, NNPC will be able to pay for its purchases in cash.”
BizWatch Nigeria understands that NNPC has been importing petrol from consortiums of foreign and local trading firms and repaying them with crude oil via what is known as Direct Sale Direct Purchase (DSDP) contracts since 2016 because it does not have enough cash to pay for the purchases, the statement said.
Nigeria is Africa’s biggest crude producer but imports most of its refined products after running down its refineries. Nigeria’s petrol import bill hit N5.2 trillion in 2022, the highest in six years, as the quest by the country to wean itself off imported fuel drags.
President Bola Tinubu has been called by the Socio-Economic Rights and Accountability Project to look into the $2.1 billion and N3.1 trillion in subsidy payments that are reportedly missing and unaccounted for between 2016 and 2019.
In a statement released on Sunday, Kolawole Oluwadare, the Deputy Director of SERAP, made the call.
“Create a presidential panel of enquiry to promptly investigate the grim allegations that $2.1 billion and N3.1 trillion public funds from oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019, as documented by the Auditor-General of the Federation,” SERAP urged Tinubu to do.
The group urged the President to name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted for fuel subsidy, and to ensure their effective prosecution as well as the full recovery of any proceeds of crime.
The President was also urged to promptly, thoroughly, independently, transparently and effectively investigate all fuel subsidies paid by successive governments since the return of democracy in 1999, and to use any recovered proceeds of crime as palliatives to address the impact of any subsidy removal on poor Nigerians.
In a letter dated June 3, 2023, Oluwadare stated that there was a legitimate public interest in seeing that these serious claims were resolved with justice and accountability. Without holding those responsible for these violations of human rights accountable, there will be no sustainable economic progress.
The group urged Tinubu to take immediate action to follow due process of law in any strategy to end gasoline subsidies, guarantee that those accused of committing these crimes against Nigerians are prosecuted, and ensure that any lost public funds are recovered in full.
Furthermore, it stated that “removing fuel subsidies arbitrarily without addressing unresolved accountability issues in the alleged mismanagement of oil revenues and fuel subsidy payments would amount to further impoverishing the poor while allowing high-profile officials and non-state actors to get away with their crimes.”
If the President doesn’t order an investigation within three days, SERAP warned that it will file a lawsuit.
This development represents a substantial increase as Market Forces Africa had previously indicated that the Tier-1 capital bank’s market value was less than N2.5 trillion.
According to their independent certified reports, local lenders had increases in top line despite challenges and overcame profit difficulties in the first quarter despite pressure from the currency crisis.
Trading statistics demonstrate that when the banking index increases, so too has the year-to-date performance of Tier-1 banks (FBNH, UBA, GTCO, ACCESS, Zenith -FUGAZ).
According to statistics examined by analysts, Access Holdings’ year-to-date return placed better in the tier-1 capital stock market performance. FBNH was the stock’s follower. With almost 7% growth over the last seven trading sessions on the local exchange, Zenith Bank’s appeal to value investors grew during the last week.
According to The Banker, the bank of the year’s worth increased to N897.939 billion, preserving its position as the industry’s top brand. Following solid profits growth in the first quarter of 2023, its share price reached N28.6. The financial services titan with its headquarters in Ajose Adeogun has a lot to offer. This involves consistent profitability increase year over year.
Strong earnings throughout the course of the year, according to equity experts, have enabled the bank adhere to its dividend policy. With a high purchasing recommendation, Zenith Bank continues to be the most valued stock on the local exchange.
GTCO Plc value, which is near to the top after sliding from the top and is now rated second in the banking industry, is traded at N28.3 per share. On 29.43 billion outstanding shares as of Friday, the Orange brand financial services holding firm was valued at N834.4 billion.
After intense price-cutting, FBNH, valued around N512 billion, was sold at N14.25 per share on the Nigerian stock exchange. However, Stanbic IBTC, a tier 2 lender in the market, is more valuable than the financial holding firm.
Selling at N44 as of Friday close, Tier-2 bank, Stanbic IBTC worth N570 billion. Access Holdings, the largest financial services by total asset has also seen its market valuation increase amidst stock market rallies.
Access Plc is however lower at N429 billion as of Friday’s close versus peers’ valuation. UBA’s valuation was the lowest in the category at about N320 billion. The bank share was priced at N79.35 on Friday.
Weekly stock market performance
Zenith Bank gained 7.55% in the just concluded week, while GTCO shares closed with 5% share price appreciation in the last seven days of trading sessions. FBHN’s share also jumped 5.17% amidst underwhelming earnings performance in 2022.
Meanwhile, Access Holdings’ share price gathered momentum with a 12.73% weekly gain, according to market data. Trailing Access share uptick, UBA pushed higher with a 6.86% increase in its market valuation.
Month-to-date returns
Zenith Bank recorded about a 21% gain month to date, tracking behind GTCO’s 24.62% share appreciation in the same period. In the month, FBNH’s share price has advanced more than 30%.
Access Holdings jumped by 18.66% with support from its last week’s rally that pushed prices upward. UBA share price also increased by 18.35% over a month, providing investment returns covering inflation rate exposures.
Year-to-Date Returns
Zenith Bank has boosted its market valuation with a 21.70% valuation jump. The returns track along with the inflation rate movement amidst an improved estimate for 2023. UBA gained 21.43% in the same period while FBNH Plc has seen a 33.18% year-to-date gain.
Access Holdings top the performers list with more than 45% year-to-date return, GTCO also delivered an impressive return, recording 27.13% year-to-date return.
The Mastercard Foundation and the Institut Pasteur de Dakar have pledged $45 million to help Africa become independent in the production of vaccines.
According to a joint release, the cooperation, named “Manufacturing in Africa for Disease Immunization and Building Autonomy,” aims to create and grow a top-tier labor force to support vaccine production.
It was further stated that a center of excellence for training would be built to provide gifted youth, particularly young women, with specialized training in vaccine research, development, manufacture, and distribution.
By 2040, there will be a demand for between 9,000 and 14,000 full-time workers in Africa, according to Dr. Jean Kaseya, director-general of the African CDC.
“The African Union and the Africa Centers for Disease Control and Prevention have jointly called for a new public health order that will protect the continent’s health and economic security as it works to realize Agenda 2063’s goals. This vision’s expansion of local production of pharmaceuticals, diagnostics, and vaccinations is one of its main tenets.
Currently, less than 1% of the vaccines given across the continent are made locally. The ability of African nations’ health systems to respond to pandemics and other health crises is diminished by this heavy financial burden.
Amadou Sall, the Chief Executive Officer of IPD, adding that the collaboration between IPD and the Mastercard Foundation would promote the growth of human capital for biomanufacturing in Africa.
Reeta Roy, president and chief executive officer of the Mastercard Foundation, stated that the partnership would also improve the lives of young people in Africa.
First Bank has disclosed that its profit before tax increased from N130.9bn in the same period of 2021 by 12.4% to N147.0bn as of the end of 2022.
It claimed that from the end of December 2021 to the end of December 2022, its profit after tax increased by 9.8% to N129.4 billion.
This information was provided by the bank in its financial statement for the Group’s final year in 2022 and first-quarter results in 2023.
Dr. Adesola Adeduntan, CEO of FirstBank (Commercial Banking Group), commented on the results, stating that the Commercial Banking Group maintained its high performance trajectory from the 2021 results.
“Another set of impressive results for FY 2022,” he said, “with gross earnings up 4.4% year over year to N748.6 billion and profit before tax of N147 billion, reflecting a gain of 12.4% year over year.
“Despite the exceptional macroeconomic challenges and the complex regulatory environment, total assets increased by 18.1% year over year to N10.1tn.
“The significant improvement in PBT was driven by a 58.3% year-over-year increase in interest income from N255.7 billion to N357.2 billion resulting from business growth and better balance sheet optimization. This is in line with our agenda for the Quantum Profitability Leap.
According to the financial report for the first quarter of 2023, the business’s revenue before tax increased by 57.0% year over year to N53.5 billion as of the end of March 2022 from N34.1 billion, while its profit after tax increased by 54.8% to N48.0 billion in Q1 2023 from N31.0 billion in Q1 2022.
Dr. Adesola Adeduntan, FirstBank’s Chief Executive Officer (Commercial Banking Group), commented on the results of the first quarter of 2023, saying, “The FirstBank Group had an exceptional performance in the first quarter, with considerable increase across key measures.
Gross earnings saw a significant increase of 44.2% year over year, proving the bank’s capacity to generate significant revenue from core operations, according to Adeduntan.First Bank increases profits by 12.4%.
Every year on June 5th, World Environment Day brings people from all over the world together to confront serious environmental issues. Plastic pollution is one of the most serious problems we face in Nigeria, endangering our ecosystems, public health, and long-term development.
We can, however, safeguard our environment and develop a cleaner, greener future by comprehending the scope of the problem and implementing efficient solutions.
According to the United Nations, “World Environment Day 2023 is a reminder that people’s actions on plastic pollution matters. The steps governments and businesses are taking to tackle plastic pollution are the consequence of this action.
“It is time to accelerate this action and transition to a circular economy. It is time to #BeatPlasticPollution.”
Single-use of plastic has become one of Nigeria’s major problems, dirtying the streets, blocking the drainages, and polluting the oceans.
Plastic Pollution in Nigeria: A Growing Concern
Plastic pollution has become a widespread issue in Nigeria, wreaking havoc on land, rivers, lakes, and coastal areas. This situation is exacerbated by the increased use of single-use plastics, poor waste management, and a lack of recycling infrastructure. Recycling in Nigeria is very poor, hardly do we recycle, throw our waste properly or re-use materials.
Plastic garbage clogs drainage systems, causing flooding, and enters water bodies, hurting aquatic life and polluting the food chain.
To address this issue, a multifaceted approach involving individuals, communities, corporations, and government institutions is required.
Solutions to Plastic Pollution in Nigeria
To effectively tackle plastic pollution in Nigeria, a thorough and coordinated effort is required. Here are a few ideas that can have a big impact:
Encourage Plastic-Free Initiatives
Government organizations can provide incentives for businesses to use less plastic. Encouragement of the use of sustainable packaging alternatives, such as biodegradable materials or reusable containers, can considerably reduce plastic waste.
Policies that discourage the use of single-use plastics, such as plastic bags and straws, can also be beneficial.
Increase Public Awareness and Education
It is critical to raise awareness about the harmful effects of plastic pollution. Campaigns should be launched by government agencies, non-profit groups, and educational institutions to educate the public on the environmental consequences of plastic waste and to encourage sustainable alternatives.
Plastic waste may be considerably reduced by encouraging behavioral change and appropriate consumption behaviors.
Improve Waste Management Infrastructure and Practices
Improving waste management infrastructure and practices is critical for combating plastic pollution.
Local governments should invest in waste collection, sorting, and recycling infrastructure. Furthermore, effective waste management policy and regulation enforcement is required to assure compliance and hold polluters accountable.
Encourage Recycling
A strong recycling system is vital for minimizing plastic waste in Nigeria. Governments should collaborate with private companies to build recycling facilities and support initiatives that promote plastic recycling.
Individuals and businesses can be encouraged to separate and recycle their plastic garbage through public awareness initiatives.
Plastic Alternatives
Adopting sustainable plastic alternatives is critical for reducing plastic consumption in Nigeria. Here are some eco-friendly alternatives to plastic:
Cloth Bags and Baskets
Instead of using nylon bags, use a cloth bag or baskets. Reusable bags are much preferred to nylons,
Stainless steel or glass water bottles
Choose long-lasting, reusable water bottles over throwaway plastic ones.
Banana or Plantain Leaves
Instead of plastic wrappers, consider using banana or plantain leaves in traditional Nigerian food.
Bamboo or stainless steel straws
Instead of using plastic straws, use reusable bamboo or stainless steel straws.
Use biodegradable or compostable food containers manufactured from materials such as sugarcane fiber or cornstarch.
Utensils Made of Natural Fibers
Instead of plastic cutlery, use utensils made of bamboo, coconut shells, or other natural materials.
World Environment Day serves as a timely reminder of our obligation to conserve the environment and solve serious concerns like plastic waste.
Combating plastic pollution in Nigeria necessitates a collaborative effort involving individuals, communities, corporations, and the government.
We can create a cleaner and more sustainable Nigeria by raising awareness, strengthening waste management systems, promoting recycling, and adopting sustainable alternatives to plastic. Let us all pledge to take action and work together to create a future where plastic pollution is no longer a threat to our environment and well-being.
Unity Bank Plc has posted a Profit Before Tax of N1.1 billion for its full-year results that ended December 31, 2022, even as its gross earnings rose by 13.1per cent to N57 billion from N50.2 billion in the corresponding period of 2021.
The Bank in its audited full-year financial statement submitted to the Nigeria Exchange Limited (NGX) recorded growth in key performance indicators as reflected in the interest income, loans and advances to customers, customer deposits, and profits.
A major highlight of the financial year is the growth in total comprehensive income, which rose by 262.1per cent to N1.2 billion from N744 million in the corresponding period of 2021. The Bank grew Profit Before Tax (PBT) by N1.1 billion, while Profit After Tax stood at N941.4 million.
With the loan book sustaining an expansion by 7.5% to N289.4 billion from N269.3 billion within the period under review, the interest and similar income consequently witnessed significant growth rising 7.5 per cent to close at N48.9 billion compared to N43.2 billion in the corresponding period of 2021.
Similarly, income from fees and commissions recorded significant growth, rising by 25.7 per cent to N7.68 billion from N6.1 billion within the period under review.
More so, deposits from customers saw marginal growth, increasing by 1.6per cent to N327.4 billion from N322.2 billion in the corresponding period of 2021 as the Bank pushes for deeper penetration of its retail footprint with the rollout of products targeting different segments of the market.
Meanwhile, the Bank also released its unaudited financials for Q1, 2023, in which it sustained improved performance, posting a 21 per cent growth in Profit After Tax, PAT to N1.04 billion from N869.2 million in the corresponding period of 2022. Its gross earnings for the quarter also rose by 17 per cent to N15.9 billion compared to N13.6 billion in the corresponding period of 2022.
Commenting on the financial statements, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun noted that the Bank’s focus on building back momentum continues to reflect in the key performance indicators despite economic headwinds and volatilities that characterized the operating environment in the 2022 financial year.
“There are highs and lows as we look at the gross earnings, with 13.7 per cent growth, increase in liquid assets by 7.5 per cent and deposits recording moderate growth of 1.6 per cent, while maintaining steady growth in profitability”, she stated.
“Overall, the financial statement thus threw up both strong and less optimal points which inform the outlook for our business”, she further stated.
She reassures that going into the new financial year, the Bank will remain laser-focused on our strategic choices and key growth drivers to push all the indices and elevate growth to double-digit territory. “
The performance posted for Q1 2023 in terms of the PBT, gross earnings, and other key indicators are strong reinforcement of adequate measures being adopted and a testament of our resolve to sustain and equally improve upon the fundamental initiatives adopted to strengthen growth throughout the course of the financial year,” Somefun stated.
She further said: “Since late 2022, the Bank has begun significant investment in technology and innovation in line with its strategic pursuits to win in the retail space with our focus on digital and lifestyle banking, dynamic product development, and accelerated onboarding. As part of our transformation journey, we will double down on these investments in the coming months in order to achieve our aspirations of (1) significantly reducing customer pain points and simplifying customer experience; (2) increasing the rate of customer acquisition; (3) expanding the frontiers of partnerships; and (4) ultimately developing new and sustainable income lines for the Bank.”
According to her, the Bank will further give attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and brand visibility as it expands the range of products and services to meet the evolving needs of its esteemed customers.
The cause and people responsible for the country’s deadliest train catastrophe in decades have been discovered, according to India’s Railway Minister, who pointed to an electronic signal system without providing any specifics.
“We have identified the cause of the accident and the people responsible for it,” India’s Railway Minister Ashwini Vaishnaw told news agency ANI, but said it was “not appropriate” to give details before a final investigation report.
The dead toll after Friday’s collision near Balasore, in Odisha’s eastern state, was anticipated to exceed 288.
According to Ashwini, the disaster was caused by a “change that occurred during electronic interlocking,” a technical phrase referring to a complicated signal system designed to prevent trains from colliding by coordinating their movement on the rails.
“Whoever did it, and how it happened, will be found out after proper investigation,” he added
The entire sequence of events was unclear, although railway officials were quoted as claiming that a signaling fault had forced the Coromandal Express traveling south from Kolkata to Chennai onto a side track.
It collided with a freight train, and the wreckage derailed an express train traveling north from India’s IT hub Bengaluru to Kolkata, which was also travelling through the area.
Pradeep Jena, the chief secretary of Odisha state, revealed that over 900 persons had been hospitalized.
Stanbic IBTC Holdings, a member of Standard Bank Group, joined the rest of the nation to celebrate this year’s Children’s Day and reaffirm its unwavering commitment to the upliftment and empowerment of the Nigerian child.
During its Blue Kids event, held recently to commemorate the 2023 Children’s Day, Stanbic IBTC strongly emphasised promoting financial literacy among children. Amidst pomp and pageantry, the Blue Kids’ event featured innovative and exciting activities such as a creative class, gaming activities, a financial fitness session and more.
During the occasion, Emmanuel Aihevba, Head, Personal Clients at Stanbic IBTC Bank, expressed his heartfelt wishes to all Nigerian children, emphasising their importance to the nation’s progress.
He said, “Children’s Day serves as a poignant reminder of the importance of nurturing and safeguarding the younger generation, who represent the future leaders and change-makers of the country. Stanbic IBTC recognises its critical role in promoting children’s wellbeing and educational development and remains steadfast in its efforts to provide support and resources that contribute to their growth.”
Recognising the importance of instilling financial knowledge and skills early, Stanbic IBTC develops engaging and educational programmes that equip children with the necessary tools to make sound financial decisions and develop a solid financial foundation for their future.
Layo Ilori-Olaogun, Head, Client Experience at Stanbic IBTC Pensions also spoke about the various innovative initiatives Stanbic IBTC creates for the nation’s future leaders. One of these initiatives is the Children Educational Savings Scheme (CHESS) account, a special savings account developed to support parents in meeting the cash flow and timing needs of their children’s education. Available for kids between ages zero (0) and 17 years, CHESS offers a low opening balance, a one per cent interest rate above the average savings account, a MasterCard debit card for easy access to your funds, round-the-clock access to the customer care centre via phone, email and social media and full digital banking access – Internet, App and USSD, amongst other benefits.
In 2020, Stanbic IBTC kicked off the Stanbic IBTC Education Trust (SET) scheme. The trust is a convenient and flexible investment plan with long-term benefits designed to support parents and guardians striving to provide quality education for their children and wards.
One unique benefit of Stanbic IBTC Education Trust is that payments are effected directly to the institution of learning, ensuring no diversion of funds. Whether it is primary, secondary, tertiary, or post-graduate education, parents and guardians can now contribute to funding their children’s and wards’ education.
Layo described Stanbic IBTC’s Education Endowment Assurance as another remarkable initiative and a vehicle for saving that secures a child’s future education to a targeted amount. It is a policy that guarantees peace of mind on a child’s/ward’s education and benefits one’s dependents in case of death.
As the nation celebrated Children’s Day, Stanbic IBTC renewed its commitment to championing the rights and well-being of Nigerian children. The firm remains dedicated to implementing impactful initiatives that foster growth, education, and development. By investing in the Nigerian child today, Stanbic IBTC is investing in a prosperous and inclusive future for all.
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