NEWS AGENCY OF NIGERIA
Business , Economy/Business

LCCI projects increased inflation rate for February

176 total views today
By Rukayat Moisemhe
The Lagos Chamber of Commerce and Industry (LCCI) has projected an increase within the range of one per cent in the Nigerian headline inflation index for February, 2021.
The LCCI made this known in a report released on Tuesday with the titled: “Spiraling Inflation: Cost Implications for Businesses and the Economy” .
The report syrvey was conducted by Dr Mathew Ojo, LCCI’s Assistant Director, Research and Advocacy department.
According to the report, a survey conducted by the Chamber projected the headline inflation for February to hit 17.24 per cent from 16.47 per cent recorded in January.
Also, the LCCI in the report said that consequent headline inflation for the months of March and April was pegged at 17.93 per cent and 18.43 per cent respectively going by the Chamber’s model on inflation rate projections.
The LCCI hinged its projections on the  combination of underwhelming food production, higher energy costs, lingering foreign currency liquidity and heightened insecurity in major food-producing states.
This development, the LCCI said, would continue to mount pressure on consumer purchasing power and pricing.
The LCCI survey indicated additionally that the commencement of planting season in the second quarter was expected to keep food production subdued, thereby triggering food prices in the country.
The Chamber also explained that basic supply-side issues, particularly, the heightened insecurity around the country, but more pronounced in Northern and Middle-Belt region – the major food-producing regions in Nigeria were contributory factors.
Others, the report stated, were increasing cost of transporting food items from farms to markets as a result of elevated prices of petroleum products, weak productivity in the agriculture sector and increased cost of agricultural inputs.
“The COVID-19 pandemic propelled the Federal Government to impose lockdown and movement restrictions as part of the efforts in containing the spread of the deadly virus in 2020.
“However, the chamber noted that these policies caused disruptions to activities in the country’s agricultural sector as farmers were unable to access their farmlands, thereby leading to supply shortage of agricultural output.
“The unfortunate situation prevented farmers from taking advantage of the planting season to grow crops.
“Consequently, the increased demand for agricultural products amid food supply shortage triggered food costs, as supply disruptions were further worsened by flood incidences.
“Which in turn affected some parts of producing states, destroying crops shortly before the harvest period.
“Currently, reports of a transportation gap from the North to other parts of the country, especially the Southwest would also serve to spike up the inflation rates from the height it already is at,”the report read.
Shedding more light on the development, LCCI’s Director-General, Dr Muda Yusuf, told the News Agency of Nigeria (NAN) that the Northern region, which accounts for a major chunk of food production, was currently threatened by persistent security crisis.
This, he said, would greatly affect the food composite of the inflation index, a factor that greatly impacts the core inflation index.
Yusuf urged government to expend more efforts at addressing regional and ethnical discrepancies affecting the supply chain of farm produce from the northern parts to other regions of the country.
“The unabated rise in inflation has continued to impact the business environment with serious implications for economic stability.
“We may not have seen the end of the pressure on inflation as the current trends of boycott, heightened insecurity from bandits and herdsmen activities, confusion and attacks continue to beguile the major food producing parts of the country.
“We need to resolve these ethnical issues around the supply of food to resolve the challenges affecting agricultural outputs and food distribution.
We also need to see a reduction in the prices of fertilisers, animal feeds and other agricultural components to moderate the current uptrend in Nigeria’s inflation rates,” he said. (NAN)
Business , Economy/Business

NSE market capitalisation drops N123bn on Nestle loss

133 total views today

By Chinyere Joel-Nwokeoma

The nation’s bourse closed trading on Tuesday on a negative note, due to price depreciation posted by Nestle and other 25 stocks.

Consequently, the benchmark index declined by 233.81 or 0.59 per cent to 39,697.62 from 39,931.63 achieved on Monday.

Accordingly, the month-to-date and year-to-date losses increased to 0.30 per cent and 1.4 per cent, respectively.

Similarly, the overall market capitalisation which opened at N20.892 trillion dipped N123 billion to close at N20.769 trillion.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which were Nestle, Flour Mills, Ardova Plc, Lafarge Africa and Unilever.

Market sentiment was negative with 26 laggards against 18 gainers.

Mutual Benefits Assurance led the losers’ chart in percentage terms, losing by 10 per cent to close at 36k per share.

Ardova followed with 9.97 per cent to close at N16.25, while Champion Breweries shed by 9.69 per cent to close at N2.05 per share.

The Initiates lost 9.62 per cent to close at 47k, while Sterling Bank lost 8.75 per cent to close at N1.46 per share.

Conversely, Academy Press dominated the gainers’ chart in percentage terms, improving by 9.76 per cent to close at 45k per share.

PZ Cussons followed with 9.38 per cent to close at N5.25 per share.

Royal Exchange and Beta Glass Company rose by eight per cent each to close at 27k and N54 per share, respectively.

Regency Alliance Insurance chalked up 7.69 per cent to 28k per share.

Transactions in the shares of Zenith Bank topped the activity chart with 48.10 million shares valued at N1.24 billion.

United Capital followed with 20.24 million shares worth N121.97 million, while Mutual Benefits Assurance traded 19.44 million shares valued at N7.22 million.

Japaul Gold and Ventures sold 17.06 million shares valued at N10.48 million, while AXA Mansard Insurance transacted 8.97 million shares worth N9.38 million.

In all, the total volume of trades decreased by 59.1 per cent as investors bought and sold 222.57 million shares valued at N5.39 billion exchanged in 4,470 deals.

This was against a total of 543.99 million shares worth N1.89 billion achieved in 4,673 deals on Monday. (NAN)

Business , Economy/Business

Nestlé Nigeria Plc records N287bn revenue, 1.1% growth in 2020

132 total views today

By Vivian Ihechu

Nestlé Nigeria Plc has announced its financial results for the year 2020, posting a revenue of N 287.1 billion with 1.1 per cent growth over the previous year.

Gross profit for the year 2020 stood at N 119.2 billion, compared to N 128.1 billion during 2019.

The company posted profit after tax of N 39.3 billion for the year. The detailed financial results are available on our https://www.nestle-cwa.com/en/investors/nigeria

In addition to N 25 per share interim dividend already paid in December 2020, the Board proposed an additional dividend of N 35.5 per share making for a total dividend of N 60.5 for 2020.

This proposed dividend will be submitted for approval at the company’s Annual General Meeting on  June 22,  2021.

Results :

Commenting on the results, Mr Wassim Elhusseini, Managing Director and CEO of Nestlé Nigeria PLC, said: “Amidst a very challenging business environment in 2020, we strengthened market leadership across our categories.

“Thanks to our high performing team, we successfully continued to provide our consumers with high-quality affordable foods and beverages to enjoy every day.

“In line with our purpose of unlocking the power of food to enhance quality of life for everyone today and for generations to come, we broadened our portfolio in 2020.

“To help our consumers fulfil their nutrition needs. Our latest innovation is the new GOLDEN MORN Multi-Cereal, fortified with Iron and other vitamins and minerals.”

Elhusseini  said:“Going into 2021, which portends to be another challenging year, we will continue to focus on keeping our people safe.

“We will continue supply of high-quality nutritious foods and beverages to consumers as well as caring for our communities and the planet.

“ We will also keep supporting our business partners as we strengthen our operations to adapt to the rapidly changing reality,’’ he said. (NAN)

Business , Economy/Business

NIPC to showcase investment opportunities at Nigeria Finance Week – Official

133 total views today

By Emmanuella Anokam

The Nigerian Investment Promotion Commission (NIPC) says it will host a special session tagged “Showcasing Sub-National Investment Opportunities” at the Nigeria Finance Week to promote investments into priority sectors.

Mr Emeka Offor, NIPC’s Director of Strategic Communication, said at the opening of the finance week on Tuesday in Abuja that it would hold the special session on Wednesday.

The News Agency of Nigeria (NAN) reports that the virtual event seeks to showcase opportunities and the latest technologies in Nigeria’s rapidly developing banking and financial services sector.

Offor said the event, organised by the Ministry of Finance, Budget and Planning in collaboration with NIPC and Frontier Exchange Ltd, U.K., would hold between March 2 and March 4.

According to him, state investment promotion agencies from the geo-political zones of Nigeria will join NIPC to discuss promotion of investments in the priority sectors.

He noted that the session would also highlight Nigeria’s investment prospects across the states.

He added that the support mechanisms in the states from new and existing investors would be discussed, to further showcase the Nigerian evolving investment climate. (NAN)

Business , Economy/Business

Dangote Sugar Refinery reports N26.70bn profit for 2020

151 total views today

By Chinyere Joel-Nwokeoma

Dangote Sugar Refinery Plc (DSR) recorded profit after tax of N26.70 billion for the financial year ended Dec. 31, 2020.

The company stated this in its audited result released on the floor of the Nigerian Stock Exchange on Monday.

The profit after tax represented an increase of 33.2 per cent when compared with N22.36 billion recorded in the corresponding period of 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value.

The company’s group revenue increased by 33 per cent to N214.30 billion in contrast to N161.09 billion in 2019.

Gross profit increased by 40.4 per cent to N53.75 billion, against N38.29 billion posted in 2019.

In spite of the disruptions in the economy due to coronavirus pandemic, Dangote Sugar Refinery recorded an increase in production, which rose by 13.7 per cent to 743,858 tonnes compared with 654,071 tonnes posted in 2019.

The sugar group also posted increase in sales, which rose by  6.9 per cent, from 684,487 tonnes to 731,701 tonnes.

The company attributed the performance to operations optimisation strategy despite momentary disruption caused by civil unrest in the last quarter of the year.

It noted that the growth continued to benefit from sustained efforts to drive the expansion of customer base and several trade initiatives and investments.

Commenting on the result, the company’s Group Managing Director/Chief Executive, Mr Ravindra Singhvi, said despite the socio-economic uncertainties occasioned by the COVID-19 pandemic during the year under review, the sugar group continued on the growth path with commitments to improve on performance and generate value for all stakeholders.

This, he said, was reflected in the sales of 731,701 tonnes, and production of 743,858 tonnes being 6.9 per cent and 13.7 per cent increase in volumes over the comparative year 2019.

“2020 was indeed very eventful for our company ranging from the weak macroeconomic fundamentals caused by the underlying impact of COVID-19 pandemic.

“This saw to the steady rise in foreign rate, high inflation and the significant rise in our cost of production, to the worsening traffic gridlock on the Apapa Wharf road which led to delays and at times disruption of the distribution and deliveries to customers,” he said.

Singhvi added that the company activated its Business Continuity Management System during the lockdown due to the COVID-19 pandemic and disruptions caused by EndSARS protests.

He said this helped to minimise the adverse impact the situation had on businesses in the country.

He noted that one of the key highlights of the year was the successful completion of the Scheme of Arrangement – merger of DSR and Savannah Sugar Company Ltd. with effect from Sept. 1, 2020 to operate under one unified entity.

“We are confident the merger will enable us to achieve operational, administrative and governance efficiencies resulting in increased shareholder value.

“We will continue to pursue our Backward Integration Projects, and other key initiatives to grow our sales volumes, market share, optimise cost and operational efficiencies,” he added. (NAN)

Business , Economy/Business

NSE resumes March with N69bn growth amid uptick in BUA Cement

142 total views today

By Chinyere Joel-Nwokeoma

Activities on the Nigerian Stock Exchange (NSE) commenced the week and month on Monday on a bullish trend, following uptick in BUA Cement, Zenith Bank and UBA.

Specifically, the market capitalisation increased by N65 billion or 0.33 per cent to close at N20.892 trillion from N20.823 trillion posted on Friday.

Also, the NSE All-Share Index which opened the month of March at 39,799.89 rose by 131.74 points or 0.33 per cent to close at 39,931.63.

Consequently, the month-to-date return settled at 0.3 per cent , while the year-to-date loss moderated to 0.8 per cent.

The uptrend was also driven by price appreciation in medium and large capitalised stocks amongst which are; UACN, AIICO Insurance, Veritas Kapital Assurance, BUA Cement and Neimeth International Pharmaceuticals.

Analysts at Afrinvest expected that earnings released and dividends declaration would influence trading activity in spite of weak investor sentiment.

UACN dominated the gainers’ chart in percentage terms with 6.67 per cent to close at N8 per share.

AIICO Insurance followed with 5.22 per cent to close at N1.21, while Veritas Kapital Assurance rose by five per cent to close at 21k per share.

BUA Cement rose by 3.82 per cent to close at N74.75, while Neimeth International Pharmaceuticals appreciated by 2.73 per cent to close at N1.88 per share.

On the other hand, NASCON led the losers’ chart in percentage terms, losing 9.97 per cent to close at N14.45 per share.

Champion Breweries followed with 9.92 per cent to close at N2.27, while PZ Cussons shed 9.43 per cent to close at N4.80 per share.

Lasaco Assurance lost 8.94 per cent to close at N1.12, while Royal Exchange and Sovereign Trust Insurance depreciated by 7.41 per cent each to close at 25k per share each.

Also, the total volume of trades increased by 7.2 per cent to 543.99 million shares valued at N1.89 billion exchanged in 4,673 deals.

This was in contrast with a total of 507.25 million shares worth N2.44 billion traded in 4,465 deals on Friday.

Transactions in the shares of Wema Bank topped the activity chart with 369.68 million shares valued at N240.32 million.

Zenith Bank followed with 20.62 million shares worth N529.07 million, while Transcorp traded 13.02 million shares worth N11.48 million.

UBA traded 11.93 million shares valued at N98.65 million, while United Capital transacted 11.33 million shares worth N69.19 million. (NAN)

Business , Economy/Business

NSE total transactions drop by 13.66% in January

136 total views today

By Chinyere Joel-Nwokeoma

The total transactions at the Nigerian Stock Exchange (NSE) dropped by 13.66 per cent in January, the News Agency of Nigeria (NAN) reports.

The NSE monthly domestic and foreign portfolio investment (FPI) flows obtained NAN on Monday shows that total transactions stood at N232.46 billion (about 590.82 million dollars) in January.

This was in contrast with N269.24 billion (about $687.06 million) recorded in December.

The performance of January 2021 when compared to the performance in January 2020 (N235.46billion) revealed that total transactions decreased marginally by 1.27 per cent.

In January 2021, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 60 per cent.

A further analysis of the total transactions executed between January 2021 and the prior month (December 2020) revealed that total domestic transactions decreased by 7.21 per cent from N199.32 billion in December to N184.94 billion in January 2021.

Similarly, total foreign transactions decreased by 32.04 per cent from N69.92billion in December (about $178.44 million) to N47.52 billion (about $120.78million) in January 2021.

A comparison of domestic transactions revealed that retail transactions increased by 10.16 per cent from N61.22 billion in December 2020 to N67.44 billion in January 2021.

The institutional composition of the domestic market also decreased by 14.91 per cent from N138.09 billion in December 2020 to N117.50 billion in January 2021.

Over 14 year period, domestic transactions decreased by 59.54 per cent from N3.56 trillion in 2007 to N1.44 trillion in 2020, whilst foreign transactions increased by 18.45 per cent from N616 billion to N729 billion over the same period.

Total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26 per cent of the total transactions in the same period.

The transaction data for January 2021 shows that total foreign transactions was circa N47.52billion, whilst total domestic transactions was circa N184.94 billion. (NAN)

Business , Defence/Security , Economy/Business

Aregbesola inaugurates 105 rooms hotel for correctional service

187 total views today

By Sumaila Ogbaje

The Minister of Interior, Ogbeni Rauf Aregbesola, has inaugurated a 105-room hotel, an investment of the Correctional Service Multi-Purpose Co-operative Society (COCOS) of the Nigerian Correctional Service (NCoS) in Abuja on Monday.

The News Agency of Nigeria (NAN) reports that the hotel is located at the NCoS Headquarters premises, Bill Clinton Drive, Airport Road, Abuja.

Aregbesola at the inauguration said that the facility was a product of strategic thinking and efficiency on the part of the leadership of the correctional service.

He said that the strategic location of the hotel close to the airport would provide proximate accommodation to travelers for local and international flights.

According to him, for a very critical organ of government like NCoS, any effort to boost the morale of personnel is commendable and also a step in the right direction.

He commended the initiators of the co-operative society for making it a sustainable financial support base for officers and men of the correctional service.

“More so, COCOS has remained relevant in bringing the government’s philosophy of personnel welfare, to reality.

“The Federal Government under President Muhammadu Buhari’s commitment to strengthening public institutions can hardly be attained without adequate staff welfare.

“It is particularly gratifying to note that COCOS has not only remained viable in providing financial succor to staff, but has stepped up to become an enviable enterprise capable of providing more dividends to all members.

“Classical economists tell us that the path to economic development is through savings and investment,” he said.

Aregbesola commended the personnel for their commitment to saving, adding that saving required personal financial discipline and sacrifice since public sector workers hardly had surplus income.

He added that savings energised the financial system while investment expands the economy, provides jobs and boosts government revenue, thereby enabling the government to perform its duties to the people.

The minister advised that the management of the facility be left in the hands of a professional manager to ensure that it would be found attractive by anyone needing the serenity and quietude of the countryside.

He also commended the immediate past Controller General of Corrections, Ja’afaru Ahmed, for conceiving and nurturing the project to fruition.

Speaking, Acting Controller General of Corrections John Mrabure said that the cooperative society was established primarily to serve as frontline support that would provide financial succor to personnel of NCoS.

Mrabure said the cooperative had lived up to its bidding, adding value to the lives of serving, retired and deceased personnel through prudent and efficient management of pooled resources.

He said it was in a bid to further guarantee the buoyancy of the corporative and give members more value for their money that the idea of investing in the hospitality industry was considered.

According to him, this profitable innovation was championed by the immediate past Controller General of Corrections Ahmed, whose disposition throughout the journey to where clearly demonstrates his passion for the welfare of staff.

“The magnificent edifice you see today began sometime in April 2020 and it has 105 rooms of different specifications, with the basic features of a standard hotel, poised to deliver excellent hospitality services,” he said.

In his goodwill message, the Comptroller Gen of Nigeria Immigration Service, Mohammad Babandede, commended the initiative of the COCOS to come up with such a magnificent project, saying it was a challenge for other cooperatives to learn from.

Babandede said that the Immigration cooperative society had learnt something from the initiative of the correctional multipurpose cooperative. (NAN)

Business , Economy/Business

BENCCIMA lauds nationwide survey of business establishments

107 total views today

By Joy Odigie

The Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), has commended the ongoing survey of business establishments in the country.

Mr John Imalingmhe, Director-General of the chamber, said the National Business Sample Survey (NBSS) being conducted by the National Bureau of Statistics (NBS) was a welcome development.

Imalingmhe said the data got from the survey would be useful to both the government and private sector to carry out proper planning of economic activities in the country.

“For us as an organised private sector in Edo, we are sure to get information about the different business establishments in the state once the survey is completed,” the director-general said.

He urged business owners to participate in the survey without fear or bias.

“The problem is that some business owners are not willing to give out accurate data, they think the purpose of the survey is to increase their tax payment.

“Accurate data is needed to carry out proper planning in all the sectors of the economy.

“Business owners should cooperate with NBS in giving authentic information about their establishments,” he said.

NAN reports that NBS in February began the NBSS, a component of National Business Sample Census. (NAN)

Business , Economy/Business

Profit taking persists on NSE, index returns to 39,000 mark

124 total views today

By Chinyere Joel-Nwokeoma

The market capitalisation of Nigerian Stock Exchange on Friday lost N155 billion amid increased profit taking.

Speficially, the capitalisation, which opened at N20.978 trillion lost N155 billion or 0.74 per cent to close at N20.823 trillion.

Similarly, the All-Share Index shed 295.60 points or 0.74 per cent to close at 39,799.89 from 40,095.49 achieved on Thursday.

An analysis of the price movement shows that Wema Bank topped the losers’ chart, dropping by 10 per cent or 7k to close at 63k per share.

Champion Breweries came second with a loss of 10 per cent or 28k to close at N2.52, while Sunu Assurance dipped 9.59 per cent or 7k to close at 66k per share.

Africa Prudential lost 5.74 per cent or 35k to close at N5.75, while Mansard Insurance declined by 5.36 per cent or 6k to close at N1.06 per share.

On the other hand, Lasaco Insurance led the gainers’ table in percentage terms, growing by 9.82 per cent or 11k to close at N1.23 per share.

Mutual Benefit followed with 8.11 per cent or 3k to close at 40k, while Courtville gained 5 per cent or 1k to close at 21k per share.

Oando added 2.99 per cent or 10k to close at N3.45, while NAHCO increased by 2.70 per cent or 6k to close at N2.28 per share.

A breakdown of the activity chart shows that Wema Bank was the most active stock, exchanging 304.53 million shares valued at N197.27 million.

FBN Holdings followed with an account of 30.75 million shares worth N226.05 million, while Zenith Bank sold 26.61 million shares valued at N677.41 million.

Transcorp sold a total of 22.93 million shares worth N20.68 million, while United Capital exchanged 17.15 million shares valued at N104.61 million.

In all, investors traded 507.25 million shares worth N2.44 billion in 4,465 deals.

This was against a total of 326.04 million shares valued at N3.72 billion in 4,567 deals on Thursday. (NAN)

X
Welcome to NAN
Need help? Choose an option below and let me be your assistant.
Email SubscriptionSite SearchSend Us Email