By Nefishetu Yakubu

A firm, Univasa Nigeria Ltd. has  inaugurated an online ride-hailing transport service, empowering no fewer than 170 drivers in Edo.

Speaking at the inauguration of the app-based taxi booking in Benin, the Chief Executive Officer, Ben Adeniyi, said the initiative was to ease the stress of commuters who went to parks to board taxis.

Adeniyi, represented by the General Manager, Univasa Nigeria Ltd., John Oyakhinome, said the e-hailing services would be expanded to other states before the end of 2021.

He said that bonuses, such as annual healthcare insurance and referrals, would be given to drivers based on the number of rides they attracted.

According to him, a tracking device has been installed in the vehicles in the event of car theft.

“All they need to do is to press the distress signal and the customers care service will immediately notify the nearest police station,” Adeniyi said.

He said that the ride-hailing features could also be used offline on application. (NAN)

By Chinyere Joel-Nwokeoma

The bears maintained leadership on the Nigerian Stock Exchange (NSE) on Wednesday with investors losing N15 billion due to persistent profit taking on blue chips.

Specifically, the market capitalisation dipped N15 billion or 0.07 per cent to close at N21.169 trillion in contrast with N21.184 trillion recorded on Tuesday.

Also, the All-Share Index dropped 29.03 points or 0.07 per cent to close at 40,465.32 from 40,494.35 posted on Tuesday.

The month-to-date loss increased to 4.6 per cent, while the year-to-date gain moderated to 0.50 per cent.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are Beta Glass, Japaul Gold, Fidson Healthcare, Consolidated Hallmark Insurance and Vitafoam.

Market breadth was negative, with 22 stocks laggards against 18 gainers.

Beta Glass led the losers’ chart in percentage terms with 9.75 per cent to close at N50 per share.

Japaul Gold and Ventures came second with 8.86 per cent to close at 72k, while Fidson Healthcare lost 8.55 per cent to close at N5.35 per share.

Consolidated Hallmark dipped 7.89 per cent to close at 35k, while Vitafoam Nigeria shed 7.56 per cent to close at N7.95 per share.

Conversely, Julius Berger dominated the gainers’ chart in percentage terms, gaining 9.73 per cent to close at N20.30 per share.

LivingTrust Mortgage Bank, formerly Omoluabi Mortgage Bank, followed with 9.68 per cent to close at 68k, while Honeywell Flour Mill garnered 9.60 per cent to close at N1.37 per share.

Cornerstone Insurance grew by 9.26 per cent to close at 59k, while UPDC Real Estate Investment Trust appreciated by 7.41 per cent to close at N5.80, per share.

In the same vein, the total volume of shares traded declined by 31.49 per cent with 244.20 million shares worth N2.65 billion in 4,083 deals.

This was in contrast with a total of 356.43 million shares valued at N5.76 billion exchanged in 5,040 deals on Tuesday.

Transactions in the shares of FBN Holdings topped the activity chart with 52.32 million shares valued at N381.49 million.

Transcorp followed with 24.81 million shares worth N23.82 million, while Guaranty Trust Bank accounted for 16.53 million shares valued at N512.53 million.

Zenith Bank traded 13.98 million shares worth N349.28 million, while Vitafoam transacted 12.08 million shares valued at N94.52 million. (NAN)

By Ismaila Chafe

President Muhammadu Buhari has felicitated with former Minister of Finance and Economy, Dr Ngozi Okonjo-Iweala on her election as Director-General of the World Trade Organisation.

By the victory, Buhari said Okonjo-Iweala has brought joy and more honour to the country.

The president’s congratulatory message is contained in a statement by his Senior Special Assistant on Media and Publicity, Malam Garba Shehu, in Abuja on Monday.

According to him, as the Harvard-educated and renowned economist takes up another onerous task of service to the world and humanity.

“Her track record of integrity, diligence and passion for development will continue to yield positive results and rewards to mankind,’’ the President said.

Buhari affirmed that Okonjo-Iweala, who over the years set major records of economic reforms in Nigeria as Minister of Finance, and later Minister of Foreign Affairs, would excel in her new position.

He expressed the hope that the former Nigerian minister would validate the global mandate of repositioning and strengthening the multilateral institution for the greater good of all.

The president joined family, friends and colleagues in wishing Okonjo-Iweala well in her new endeavour.

The News Agency of Nigeria (NAN) reports that Okonjo-Iweala’s election follows months of deadlocked discussions among WTO members on who should be chosen as the next director-general.

The former WTO chief, Roberto Azevedo, stepped down in August, a year earlier than his second four-year term was set to end.

The delays in the appointment of WTO chief reportedly stemmed from the reluctance of former U.S. president, Donald Trump, to approve the Nigerian economist’s candidacy.

The Trump administration favoured South Korean Trade Minister Yoo Myung-hee.

However, after Joe Biden assumed the presidency, the South Korean minister decided to quit the race paving the way for Okonjo-Iweala’s selection. (NAN)

By Itohan Abara-Laserian

Mr Johnson Chukwu, Chief Executive Officer, Cowry Asset Management Ltd., has said that Foreign Direct Investment (FDI) was crucial to boosting capital inflows for funding of the country’s capital projects.

Chukwu said this while presenting a paper titled: ‘Addressing Nigeria’s fiscal challenges – Exploring Alternative Funding Approach,’ on Thursday in Lagos.

The webinar was organised by the Capital Market Correspondents Association of Nigeria (CAMCAN).

He stressed the need for appropriate policies that would attract more FDIs into the country for infrastructure development.

He noted that Nigeria recorded 1.44 trillion dollars  inflow of FDI in 2015 as against $1.028 trillion reported in 2020.

“It is a far cry compared to countries like Ghana whose receipts are two times what Nigeria realised and Egypt which is seven times what we received.

“The FDI is an important source of capital funding for a country like Nigeria. Nigeria needs to come out with appropriate policies that will attract FDI, especially on foreign exchange.

”This is because as it stands today, a country may not have the wherewital to fund most infrastructure like the telecommunications sector, specifically Nitel.

“Looking at the size of the economy, what we get as capital inflow is nothing compared to the size of the economy,” Chukwu added.

He said that Nigeria needed to look at foreign exchange policies and sectors of the economy that the country could create appropriate incentives to attract foreign capital.

Chukwu observed that Nigeria has a huge revenue challenge when compared with its expenditure.

“Nigeria has a huge revenue short fall which means we have to look for fund outside government budget .

“Total revenue has remained largely flat between 2015 and 2020.

“In 2015, total revenue realised by the Federal Government stood at N3.24 trillion as against N3.47 trillion reported as of November 2020.

“There has been a steady growth in expenditure. As of 2015, total expenditure stood at N4.76 trillion in contrast with N6.24 trillion recorded from January to November 2020.

“The challenge we have in this country is a revenue challenge, we don’t have the revenue size to support the type of government we run. That’s why our recurrent expenditure has been increasing while our revenue remains flat.

“We need alternative sources of funding approach to finance the country’s development,” Chukwu said.

He added that once capital expenditure was not growing, the country would not develop. (NAN)

By Chiazo Ogbolu

The Nigerian Ports Authority (NPA) said on Tuesday that 15 ships at the Lagos ports were discharging general cargo, bulk wheat, petrol, frozen fish, container and base oil.

It said it was expecting 20 others laden with petroleum products, food items and other goods from Feb. 9 to 24.

The NPA made these known in its publication, `Shipping Position’, a copy of which was made available to the News Agency of Nigeria (NAN) in Lagos on Tuesday.

The ships are expected to arrive at the Lagos Port Complex.

The publication indicated that the ships contain bulk wheat, general cargo, frozen fish, soya bean, pop starch, base oil, bulk fertilizer, pop starch, petrol and soda ash.

Meanwhile, another three ships that had arrived the ports were waiting to berth with container and petrol.(NAN)

By Chinyere Joel-Nwokeoma

Capital Market experts on Monday expressed optimism that the ban on cryptocurrencies by the Central Bank of Nigeria (CBN) would likely trigger enhanced activities in the nation’s stock market.

They said this an interviews with the News Agency of Nigeria (NAN) in Lagos, while speaking on projections for stock market this week.

It will be recalled that the apex bank in a press statement on Feb. 7 directed the Deposit Money Banks and other financial institutions to desist from transacting in and with entities dealing in cryptocurrencies.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said the ban would trigger flow of funds to the equities market in search of higher returns.

Omordion said the development would support market rebound as earnings season for 2020 financial result would start trickling in.

“The ban on cryptocurrency will trigger circular flow of funds searching for a better return as the equity market today is ahead of year-on-year headline inflation.

“The market is expected to rebound in the new week on earnings season kicking off with early fliers that will come with dividend report.

“We advise that you target dividend-paying stocks and fundamentally sound companies with growth prospect in 2021, especially given the low interest rates regime and sustained oil price rally that have so far supported the economy and equity market,” he said.

Also speaking, Prof. Uche Uwaleke, President, Association of Capital Market Academics of Nigeria, said the ban would boost investors’ confidence in the equity market.

Uwaleke urged the CBN and the Securities and Exchange Commission (SEC) to come up with a regulatory framework for cryptocurrency  asset trading in Nigeria.

“Given that cryptos have come to stay, the CBN and the SEC should come up with a regulatory framework for crypto asset trading in Nigeria.

“Given the weighty nature of the directive, I want to believe that the CBN must have consulted relevant stakeholders including the Bankers Committee before taking the decision.

“I am inclined to believe that it was well thought through and not a unilateral decision.

The fact is that what the CBN could see in a squatting position, many cannot see standing.

“So, I think the directive should be seen in the light of this fact that the CBN may have information which may not be available to the public,” Uwaleke said.

He recalled that not too long ago at some point, China, widely seen as the home of cryptocurrencies, had to ban trading in bitcoins.

Meanwhile, the NSE All-Share Index last week dropped 703.57 basis points or 1.66 per cent to close at 41,709.09 from 42,412.66 achieved in the corresponding week.

Also, the market capitalisation which opened at N22.186 trillion lost N367 billion to close at N21.819 trillion.

However, a total turnover of 2.77 billion shares worth N29.68 billion were exchanged by investors in 31,380 deals last week.

This was in contrast with 2.57 billion shares valued at N27.88 billion transacted in 31,466 deals in the corresponding week. (NAN)

By Lizzy Okoji

The United States of America under President Joe Biden has affirmed its support for Dr Ngozi Okonjo-Iweala as Director-General of the Word Trade Organisation (WTO).

The office of the United States Trade Representative (USTR) disclosed this in a statement made available by the U.S Mission in Nigeria on Saturday.

The Biden-Harris administration expressed its support for Nigeria’s former Minister of Finance following the withdrawal of Korea’s Trade Minister Yoo Myung-hee as candidate for same position.

It would be recalled that past U.S President Donald Trump had blocked Okonjo-Iweala’s chances of becoming director-general of the organisation.

“The U.S takes note of today’s decision by the Republic of Korea’s Trade Minister Yoo Myung-hee to withdraw her candidacy for Director General of the World Trade Organisation (WTO).

“The Biden-Harris administration is pleased to express its strong support for the candidacy of Okonjo-Iweala as the next Director General of the WTO.

“Okonjo-Iweala brings a wealth of knowledge in economics and international diplomacy from her 25 years with the World Bank and two terms as Nigerian finance minister.

“She is widely respected for her effective leadership and has proven experience, managing a large international organisation with a diverse membership.

“The Biden-Harris administration also congratulates Minister Yoo Myung-hee on her strong campaign for this position.

“She is a trailblazer as the Republic of Korea’s first female trade minister and the first candidate from Korea to advance this far in the DG selection process.

“The U.S respects her decision to withdraw her candidacy from the director general race to help facilitate a consensus decision at the WTO,” the statement read.

The statement noted that It was particularly important to underscore that two highly qualified women made it to the final round of consideration for the position of WTO D-G.

This, it added, was the first time that any woman had made it to this stage in the history of the institution.

The U.S expressed commitment to stand ready to engage in the next phase of the WTO process for reaching a consensus decision on the WTO D-G.

“The Biden administration looks forward to working with a new WTO Director General to find paths forward to achieve necessary substantive and procedural reform of the WTO,”  it said. (NAN)

By Chinyere Joel-Nwokeoma

The nation’s bourse resumed trading on Monday on a negative trend dropping by 0.13 per cent due to profit taking in Nestle and 27 other stocks.

Specifically, the All-Share Index lost 54.76 points or 0.13 per cent to close at 42,357.90 in contrast with 42,412.66 on Friday.

Accordingly, the month-to-date return settled at -0.1 per cent, while the year-to-date gain moderated to 5.2 per cent.

Also, the market capitalisation declined by N29 billion or 0.13 per cent to close at N22.157 trillion when compared with N22. 186 trillion posted on Friday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Julius Berger, Flour Mills of Nigeria, Vitafoam and Access Bank.

Royal Exchange led the losers’ chart in percentage terms, losing 10 per cent to close at 36k per share.

It was trailed by Guinea Insurance followed 9.09 per cent to close at 20k, while African Alliance Insurance shed eight per cent to close at 23k per share.

Julius Berger dipped 7.28 per cent to close at N21, while Multiverse shed 4.55 per cent to close at 21k per share.

Conversely, Honeywell Flour Mill dominated the gainers’ chart in percentage terms gaining 10 per cent to close at N1.43 per share.

Champion Breweries followed 9.97 per cent to close at N3.42, while McNichols rose by 9.80 per cent to close at 56k per share.

Wapic Insurance rose by 9.26 per cent to close at 59k, while Jaiz Bank appreciated by 9.23 per cent to close at 71k per share.

Also, the total volume traded declined by 12.4 per cent as investors bought and sold 586.81 million shares, worth N6.02 billion traded in 7,611 deals.

This was in contrast with 669.88 million shares valued at N6.59 billion exchanged in 6,663 deals on Friday.

Transactions in the shares of Union Bank of Nigeria topped the activity chart with 79.59 million shares valued at N469.64 million.

Transcorp followed with 61.76 million shares worth N64.68 million, while United Bank for Africa traded 44.31 million shares valued at N406.72 million.

Access Bank accounted for 40.19 million shares worth N371.69 million, while FBN Holdings transacted 37.51 million shares valued at N282.35 million. (NAN)

By Chinyere Joel-Nwokeoma

FMDQ Securities Exchange Ltd., resumed 2021 with the quotation of Total Nigeria Plc., N2.25 billion Series 1 and N12.75 billion Series 2 Commercial Papers (CP) under its N30 billion CP Issuance Programme.

The company said in a statement in Lagos that its Board Listings and Market Committee also approved the quotation of Mixta Real Estate Plc., N2 billion Series 32, CP under its N20 billion CP Issuance Programme.

Similarly, the company approved the registration of Valency Agro Nigeria Ltd., N20 billion CP programme on its platform.

The debut issuance of Total Nigeria’s CP, following a volatile period for the oil and gas industry as disrupted by the COVID-19 pandemic demonstrated innovation and confidence in the Nigerian debt capital market (DCM).

This was aimed at supporting the vibrancy of the sector and in turn the reactivation of the Nigerian economy.

FMDQ said the issue attracted significant demand from a wide range of investors, resulting in a subscription level of over four times the initial issue size – a demonstration of investor confidence in the company.

Commenting on the quotation of the issue, the Managing Director of Total Nigeria, Mr Imrane Barry, explained that “the programme was set up to enable the company further broaden its sources of capital by accessing funding from the Nigerian debt capital markets, while also reducing its overall funding costs”.

Barry who thanked investors for supporting the company’s debut issue commended the financial advisers, Stanbic IBTC Capital Ltd., and FBNQuest Merchant Bank Ltd., for ensuring the success of the issue in spite the challenging environment.

Also commenting on the quotation, Tokunbo Aturamu, Head of Debt Capital Markets, Stanbic IBTC Capital, expressed his delight that Total Nigeria had joined the growing list of blue-chip corporate who have embraced CP issuances in the Nigerian debt capital markets as a means of funding their working capital requirements.

Aturamu also appreciated the Board and Management of Total Nigeria for the opportunity given to Stanbic IBTC Capital to act as Sole Arranger, as well as Joint Dealer alongside FBNQuest Merchant Bank, to the N15 billion debut, CP issuance under the programme.

In his remarks, the Managing Director, Valency International Pte Ltd., Mr Sunil Dhanuka, said “we are glad for the successful registration of Valency Agro’s, N20 billion CP Issuance Programme.”

Dhanuka also commended FMDQ for the seamless process in spite of the COVID-19 pandemic and the various restrictions.

In line with our vision to grow within the agricultural value chain in Nigeria, Valency Agro is committed to ensuring the growth of the agriculture sector through our deep involvement in Cashew, Sesame, Cocoa and other produce.

“Proceeds from this CP Programme will be used toward meeting the midterm working capital requirements of the various agricultural produce and on value addition prior to export,” he said. (NAN)

By Itohan Abara-Laserian

Vitafoam Nigeria Plc has attributed its turnover increase of 5.2 per cent from N22.28 billion in 2019 to N23.44 billion in 2020 among other impressive performances to innovation and expansion.

Mr Taiwo Adeniyi, Group Managing Director and Chief Executive Officer, Vitafoam, made the disclosure this in a statement made available to the News Agency of Nigeria (NAN)  in Lagos.

Adeniyi said that the company’s investment in its subsidiaries as a growth strategy was beginning to pay off as the growth in total sales was up by 5.2 per cent.

“As a matter of corporate policy, we do continuous improvement on our products. We sell high margin products.

“We are highly connected with our customers. We know their different needs and as such our products always gain acceptance in the market. Our foams and other products meet specific needs.

“Last year, we launched Buy Rights when our research revealed that different weights require different types of foams. We do not just sell to customers, we offer health counseling to advise on the specific foam for individual customers,,” he said.

“This has greatly endeared us to our customers. Vitafoam is not just about only rigid foams. We have strong footing in furniture and other household equipment such as Sandwich Panels, Insulation Board and Spray Foam.

“Quality product is our second name. Our current performance was not driven by sales due to COVID-19. The margin from this is insignificant and we even donated foams to Lagos State Government as our corporate support.”

The Vitafoam boss added: “Our investment in the subsidiaries as a growth strategy is beginning to pay off. All of them have turned profitable.

“We are not insulated from the tough operating environment as all the indices that should drive growth in the manufacturing sector are weak.

“But due to our innovative efforts, trust on the part of our customers and of course divine grace, our balance sheet today is one of the strongest in the industry.

“We have capacity to sustain the trajectory and we shall continue to reward our shareholders accordingly.”

Adeniyi said tha in spite of the adverse impact of COVID-19 pandemic, the company’s turnover rose by 5.2 per cent to N23.44 billion in 2020 from N22.28 billion in 2019.

“Cost of sales dropped by 8.1 per cent from N13.52 billion to N12.43 billion. Gross profit thus rose by 25.7 per cent to N11.01 billion from N8.76 billion.

“Non-core business income rose by 52 per cent from N491 million to N745 million. Interest expenses reduced by 11.4 per cent from N1.05 billion to N930 million. Profit before tax soared by 61.5 per cent to N5.6 billion from N3.5 billion,” he added.

Meanwhile, the manufacturing giant announced that its 5.2 per cent increase in total sales, 8.1 per cent drop in cost of sales, while the 11.4 per cent reduction in finance were rewards for internal cost efficiency.

Specifically, after taxes, net profit soared by 72 per cent from N2.39 billion to N4.11 billion; basic earnings per share increased to N3.05 from N1.82 and net assets per share hit N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.

On the strength of the company’s outstanding performance, the board has recommended a cash dividend of N979.4 million for 2020, 64.5 per cent above N595.4 million paid in 2019.

The current dividend translates into 70 kobo per share as against 42 kobo paid in the preceding year.

Mr Oluropo Dada, Managing Director and Chief Executive Officer, Network Capital, said that shareholders would get higher dividends, while the performance translated into higher valuations of investment for analysts and traders.

“It is a remarkable improvement on all the quantitative and qualitative parameters of the company which expectedly translated to better results with bountiful rewards to all the stakeholders.

“Shareholders are going home with higher dividends, while the performance translates into higher valuations of investment for analysts and traders,” Dada said.

The announcement of the results has attracted investors to Vitafoam shares on the Nigerian Stock Exchange (NSE) and positioned it as one of the most stable stocks, with its current net assets per share of N7.25.

Market watchers believe that Vitafoam’s share price is due for re-pricing on the capital market. (NAN)