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IoT Market in Africa, ME Targets 15% Growth in 2018

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The Middle East and Africa (MEA) Internet of Things (IoT) market is set to grow 15% year on year in 2018, according to a recent update to the Worldwide Semiannual Internet of Things Spending Guide from International Data Corporation (IDC).

The global technology research and consulting firm’s latest forecast shows MEA spending IoT reaching $6.99 billion in 2018 and $12.62 billion by 2021 as organizations ramp up their investments in the hardware, software, services, and connectivity that enable IoT solutions.

“IoT adoption in the MEA region is expected to accelerate over the coming year as organizations from both the public and private sectors increasingly digitalize their businesses in a bid to automate their operations and ramp up productivity,” says Wale Babalola, a research analyst for telecommunications and IoT at IDC MEA. “And as organizations increasingly realize the added value that is provided by IoT, we can expect to see further development of innovative industry-specific solutions.”

Totaling $2.48 billion, IoT services is forecast to be the market’s largest technology category in 2018, with the majority of this total going towards ongoing services, IT services, and installation services. Hardware will be the second-largest technology category, followed by software and then connectivity.

The vast majority of hardware spend (85%) will go towards modules and sensors. Meanwhile, software will be market’s fastest growing category over the coming years, with spending in this area increasing at a compound annual growth rate (CAGR) of 21.3% over the 2016–2021 forecast period.

The industries that are expected to spend the most on IoT solutions in 2018 are manufacturing ($1.07 billion), transportation ($0.85 billion), cross industries ($0.76 billion), utilities ($0.75 billion), and consumer ($0.68 billion).

Manufacturers will direct most of their IoT spending over the coming 12 months towards solutions that support manufacturing operations and production asset management. Over in the transportation sector, fleet management and freight monitoring will account for up to 78% of IoT spending in 2018.

In the “cross industries” category, which represents use cases common to all industries, IoT spending will largely focus on smart buildings and connected vehicles. Smart grids for electricity will account for a little over 82% of total IoT spending in the utilities sector, while around 50% of consumer IoT spending will be driven by investments around smart buildings.

The IoT use cases that IDC expects to attract the largest investments in 2018 are smart grid electricity ($0.62 billion), manufacturing operations ($0.57 billion), freight monitoring ($0.52 billion), smart home ($0.41 billion), and remote health monitoring ($0.40 billion).

IDC forecasts manufacturing operations to overtake smart grid electricity into top spot by 2021. The use cases that will see the fastest spending growth over the 2016-2021 forecast period are insurance telematics (32.4% CAGR), smart buildings (31.4% CAGR), airport facility automation (30.5% CAGR), in-store contextualized marketing (28.8% CAGR), and electric vehicle charging (28.3% CAGR).

“The growing implementation of initiatives that leverage digital solutions will continue to fuel IoT adoption over the coming 12 months, particularly in Saudi Arabia and the UAE, ” says Babalola. “As such, these two countries combined are expected to contribute $1.57 billion of the MEA region’s total IoT spending of $6.99 billion in 2018.”

NITDA Warns of Potential Cyber Attacks in 2018

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The management of the National Information Technology Development Agency (NITDA) would like to bring to the attention of Ministries, Departments and Agencies (MDAs), other government establishments, the organised private sector and the general public of potential cyber-attacks likely to be experienced this year as well as the precautionary measures to be taken.

The Agency’s Computer Emergency Readiness and Response Team (CERRT), in conjunction with other industry stakeholders, in their efforts at ensuring a safe and secure cyberspace, have intercepted some signals of potential cyber-attacks targeting banking, health and other systems, power and transportation systems, as well as other critical national infrastructure.

In this regard, the need for all to be vigilant and proactive as far as security is concerned cannot be overemphasized. We therefore recommend the following precautionary measures:

  • efforts should be intensified at ensuring that any data is encrypted, particularly any sensitive or personal data;
  • ensure that networks are fully secure through the use of wired network thereby protecting them from possible hackers’ attempt at using Wi-Fi security lapses to remotely break into computer systems;
  • where Wi-Fi network is used, ensure that an up to date encryption standard is in use and turn off the service set identifier (SSID) broadcasting function on the wireless router if it is not needed;
  • ensure that free Wi-Fi connections as well as other wireless connections such as Bluetooth or infrared ports are not used unless where necessary;
  • ensure that operating systems and other software applications are regularly updated with the latest patches;
  • ensure that anti-malware protection is installed on all IT systems as this will help in protecting your organisation’s network from potential attacks through virus-laden software and email attachments. Also, all security software should be adjusted to scan compressed or archived ensure that appropriate guidelines are in place for connecting personal devices into the organisation’s network;
  • ensure the use of credential vaults and multi-factor authentication instead of user passwords;
  • ensure that the organisation’s data and critical files are regularly backed up; and
  • ensure that there is an organisation-wide enlightenment campaign, awareness and measures put in place to deal with cyber security threats as well as the procedures they must always follow when using their workstations.

NITDA is working with all critical stakeholders to come up with effective ways of adequately protecting the Nigerian cyberspace. We therefore call on all Nigerians to support the Agency by doing their best at protecting themselves as well as the information and systems under their care.

The National Information Technology Development Agency (NITDA) is an Agency under the Federal Government of Nigeria. The Agency was created in April 2001 to implement the Nigerian Information Technology Policy and co-ordinate general IT development and regulation in the country.

Specifically, Section 6(a, c & j) of the Act mandates NITDA to create a framework for the planning, research, development, standardisation, application, coordination, monitoring, evaluation and regulation of Information Technology practices, activities and systems in Nigeria;  and render advisory services in all information technology matters to the public and private sectors including introducing appropriate information technology legislations and ways of enhancing national security and the vibrancy of the industry.

Dangote Donates N1.2bn Building to Bayero Varsity Business School

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In his avowed commitment to encouraging entrepreneurship in the country as a way out of the economic doldrums, Nigeria’s business magnate, Aliko Dangote, is donating another N1.2 billion structure for running of business school in Bayero University, Kano (BUK).
The building which will be handed over to the university management formally next month is a state of the art edifice and will effectively mark the commencement of study of business in the institution and the first in the Northern part of Nigeria.
It would be recalled that Dangote is also building a similar business school in the University of Ibadan that would be commissioned anytime soon.
The Business Schools being undertaken by the Aliko Dangote Foundation, according to the President of Dangote Group is part of the efforts to build entrepreneurship in the sub-consciousness of Nigerians through education at the highest level.
He explained that the situation Nigeria has found itself necessitates revisiting school curriculums to reflect the new consciousness of entrepreneurship and manufacturing and efforts made to encourage study of business especially at the second level in the university.
When visited, the building which has been completed and awaiting commissioning, is a modern Business School within the premises of Bayero University, Kano. It comprises of auditoriums, lecture theatres, offices, classes, library, and complete electrical fittings and cooling system, among others.
Speaking on the gesture by Africa’s richest man, the BUK Dean of Faculty of Dangote Business School, Professor Murtala Sagagi said that there was no Business School in Bayero University, Kano (BUK) until Dangote started the project.
“We have an ambition to have a business school and we could not go ahead with the project because there was no befitting structure to accommodate the kind of dream we had but with Dangote coming in about five years ago and that was when the University decided to say this is the time to have the business school,” he said.
He noted that Kano is the second most vibrant commercial city in the country after Lagos, saying “we have industries, banks, different type of businesses, micro, small, medium and large enterprises.”
“We are having large scale investors from China, Spain and all over the world coming to Kano to make investment and this means the State needs an institution, a kind of faculty, school that can able to develop the capacity not only the management of those organisation but those people who are working in different units or department within the organisation.”
“Looking at the public sector, we have limited capacity in budget, project management, which has led to things not moving well in the country. With our unique disadvantage here in Northern Nigeria, the South is far ahead in terms of capacity level, for example there are about 20 universities in Ogun State, while in Kano State, we have only three universities and all of them owned either by the state government or federal government. It is just of recent that we are getting private investors coming in.”
Sagagi pointed out that all these show that there is a need for massive capacity building in Management, Finance, Marketing, E-Business, and particularly entrepreneurship and innovation in this part of the country and also for the entire country.
He noted further that “Bayero University has a unique reputation in the whole country and this explains why in the last National Institution Accreditation exercise, BUK became the best University in the Country, not because we have the best of everything but because of the quality of our curriculum, faculty and most importantly the quality of the students.”
The dean added that “the Dangote Business School is a great development and we hope that this business school will not only be seen as a Kano business school or Northern business school because I can tell you about 40 per cent of our students are not from Kano and more than 22 per cent of our student are from Southern part of the country.”
He urged other eminent Nigerians with wealth to emulate Dangote and contribute to the education advancement of the nation as a way of boosting the country’s economic development pointing out that “if Nigeria is blessed with two of Alhaji Dangote, Nigeria will witness unprecedented economic boost in terms of job creation, employment and poverty reduction.”

Market Statistics: Monday, 29th January 2018

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Market Cap (N’bn)                15,882.6
Market Cap (US$’bn)                   51.9
NSE All-Share Index              44,306.48
Daily Performance % 1.2
Week Performance % (1.3)
YTD Performance %                  15.9
Daily Volume (Million)                  573.3
Daily Value (N’bn)                      5.9
Daily Value (US$’m)        19.2

Equities Market Opens on a Positive Note… NSE ASI up 1.2%
The equities market opened the week on a positive note as the All Share Index (ASI) rose 1.2% to 44,306.48 points while YTD return improved to 15.9%. Accordingly, investors gained N191.0bn in value as market capitalization grew to N15.9tn.

Today’s performance was largely driven by buying interest in DANGCEM (+3.0%), FBNH (+2.7%) and UBN(+4.5%) although a broad-based rally was observed across sectors. On the contrary, activity level declined as volume and value traded fell 39.3% and 17.5% to 573.3m units and N5.9bn respectively.

Industrial Goods Index Leads Gainers
Sector performance was largely bullish as 4 of 5 indices closed northwards. The Industrial Goods index led gainers, up 1.7% owing to a rally in DANGCEM (+3.0%), WAPCO (+0.7%) and CCNN (+0.6%). The Banking index trailed, rising 0.9% largely due to buying interest in DIAMOND (+9.8%), UBN (+1.0%) and UBA (+1.6%).

Similarly, the Insurance and Oil & Gas indices appreciated 0.6% and 0.3% respectively as investors took positions in AIICO(+6.8%), WAPIC (+4.9%) and FORTE (+1.2%). On the flip side, the Consumer Goods index was the lone loser, shedding 0.7% as DANGSUGAR (-4.6%) GUINNESS (-1.8%) and NIGERIAN BREWERIES (-1.2%) recorded losses.

Investor Sentiment Softens
Investor Sentiment, measured by market breadth (advance/decline ratio) softened to 3.4x from 3.6x recorded the previous Friday consequent on 40 stocks advancing relative to 12 stocks that declined.

The best performing stocks were DIAMOND (+9.8%), TRANSCORP (+9.8%) and CILEASING (+9.7%) while DANGSUGAR (-4.6%), REDSTAREX (-4.5%) and LASACO (-4.0%) were the worst performers.

In a related news, the NSE implemented the revised par value rule today, indicating a price floor of N0.01 for stocks traded on the stock exchange. As a result, only four stocks –ABCTRANS (-4.0%), ROYALEX (-4.0%),PRESTIGE (-4.0%) and LASACO (-4.0%) traded below the previous price floor of N0.50, closing at N0.48 each respectively.

This week, we expect market performance to be largely mixed although skewed to the positive as investors position in previous decliners.

NAICOM, Governors’ Forum Partner on Insurance Penetration

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L-R: Barineka Thompson, Director, Supervision; Mr. George Onekhena, Deputy Commissioner, Finance and Administration; Mr. Sunday Thomas, Deputy Commissioner, Technical; Mr. Oba Olufemi, Director, Finance & Accounts and Dr. Habila Amos, Director, Research, Statistics & Corporate Strategy, all of the National Insurance Commission (NAICOM) at a seminar organised by NAICOM for Insurance Journalists in Benin, Edo State, at the weekend.

The National Insurance Commission (NAICOM) says it will leverage on the Nigeria Governors’ Forum (NGF) to deepen penetration of insurance in Nigeria.

Mr. Sunday, Thomas, Deputy Commissioner  at NAICOM said at a NAICOM Seminar for Journalists in Benin-City, Edo State that the drive to engage the NGF is meant to take insurance awareness and penetration to every part of the country within the shortest possible time.

“This year, we are looking at penetration, which gives NAICOM an ample opportunity to deepen the market and sustain past achievements of the Commission in the industry. We are getting into the second phase of the Market Development and Restructuring Initiative (MDRI) to leverage on the achievements of the first phase. We are also leveraging on the Nigeria Governor’s Forum to reach every state of the Federation.”

He listed the objectives of the second phase of MDRI as collaboration with sister organizations, enhancing market distribution channels and financial inclusion.

‘7 Key Indices to Drive Equity Market in 2018’

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Ayodeji Ebo MD Afrinvest Securities Limited

Mr. Ayodeji Ebo, Managing Director, Afrinvest Securities Limited, says the equity market in Nigeria would be driven largely by seven key indices of political uncertainty as a result of the 2019 general elections, sustainable stability in the Niger-Delta region, implementation of the 2018 budget, sustenance of forex stability, new market listings and earnings of corporate firms operating in the economy.

Ebo said in a paper ‘Nigeria’s Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ that he expects the federal government to curtail current security challenges in the country to create better outlook for the 2019 elections, as well as engage in ground-breaking capital projects before the elections.

“We don’t expect the federal government to increase tariff on electricity and fuel prices because of political considerations. However, we expect stable forex regime in 2018, which would also lead to pressure. On the Gross Domestic Product (GDP), our expectation is on 2.1 percent growth.”

He advised investors to focus on treasury bills to make derive revenue in the year.

“Treasury bills is the way to go in 2018 to generate less risky revenue in the financial market. Investors should equally focus on stocks that have strong fundamentals.”

Linkage Assurance, Niger Delta Varsity to Harness Talent for Insurance Industry

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L-R: Dr Pius Apere, Managing Director/CEO, Linkage Assurance Plc in a handshake with Professor Samuel Edoumiekumo, Acting Vice Chancellor, Niger Delta University (NDU) during a Career Talk by Linkage Assurance Plc at the University Campus in Bayelsa State.

Underwriting firm, Linkage Assurance Plc in collaboration with the Niger Delta University (NDU) has commenced moves to harness exceptional talents for the nation’s insurance industry.

The effort is targeted at giving opportunities to students of insurance, actuarial and financial management as well as those in mathematics and engineering sciences to make career in insurance and actuarial profession.

Dr Pius Apere, Managing Director/CEO, Linkage Assurance Plc who led management of the Company on a Career Talk to the university community said insurance industry is in serious need of actuarial professionals, more so that the sector is getting bigger with a lot of growth potentials.

Apere who was received by the Acting Vice Chancellor, Professor Samuel Edoumiekumo and the council members of the University at its main campus in Bayelsa State, underscored the commitment of Linkage Assurance to help exceptional students of the institution make career in the industry.

Dr Pius Apere in his paper titled ‘Are You Fit To Be An Actuary’, said Linkage is instituting an annual cash award of N200, 000 to best graduating student in insurance beginning from the 2018 academic session.

Besides that, the company is also offering internship opportunity to 300 – 400 level students of insurance, and opportunity for absorption after graduation.

According to him, Linkage plans to set up an Actuarial Unit in 2018, and best three candidates with Maths, Physics, Engineering or other strong quantitative degrees will be considered for immediate employment.

Professor Edoumiekumo in his remarks thanked Linkage Assurance Plc for the partnership, which he said is a dream come true.

He stated that his administration is committed to enhancing the relationship between the University and industries, in the different sectors of the economy, so that products of the university will have practical experience before they move into the labour market.

Edoumiekumo expressed the determination of the University to provided the needed platforms that give students the opportunity to advance their career while still undergraduates, pointing that what Linkage has done was a long dream that has come through.

Imo O Imo, Head of Strategy, Linkage Assurance Plc in his presentation titled ‘Insurers As Gate Keepers’ explained to the university community on the career opportunities in the insurance industry, while tasking the students to take advantage of this eye-opener to plan their career.

Imo also challenged them to start taking professional examinations while still in school, as that is the only way to make them competitive and candidates of choice in the labour market after graduation.

IMF Projects 3.9% Global GDP in 2018, 2019

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Christine Lagarde IMF MD

The upturn in economic growth prospects for the global economy is an opportunity to “fix the roof while the sun shines” and to shift the recovery from a cyclical to a structural one, financial leaders said on the closing day of the World Economic Forum Annual Meeting 2018.

The uptick provides policy-makers with an opportunity to improve policies to make economies more resilient and ensure a different distribution of the benefits of growth to address growing inequality.
Christine Lagarde, Managing Director, International Monetary Fund (IMF), Washington DC, said the global economy is in a sweet spot due to a cyclical upswing and mostly good monetary and fiscal policies. More than 120 countries are positioned for growth.
“All major developed and developing economies are doing well and let’s celebrate that,” Lagarde said. However, she cautioned that the good news is not across the board and one-fifth of emerging and developing countries are set to see a decline in per capita GDP for a combination of reasons.
Lagarde listed a few other concerns. The first is potential financial vulnerability. While US tax cuts will have positive results in the short term, this may lead to inflated asset prices and easy financing, which comes with risks. The second is excessive and growing inequality, which is creating fractures; and lastly, the lack of international cooperation and the geopolitical risks this presents.
Mary Callahan Erdoes, Chief Executive Officer, Asset and Wealth Management, JPMorgan Chase & Co., USA, said it is important for the world to get back onto a road where it does not experience boom-and-bust cycles. She commended stakeholders in the international financial system, including policy-makers and central bankers, for avoiding a second recession and getting the global economy back on to the road to recovery. The process, she said, has been complicated and difficult. “People have worked tirelessly to get this right. It’s okay to celebrate where we are and how we got here.”
Two central bankers of some of the world’s biggest economies spoke about the short-term outlook for their nations.
Haruhiko Kuroda, Governor of the Bank of Japan, said Japan has notched up seven straight quarters of economic growth of close to 2% – the longest positive run in Japan’s post-war history.
However, the central bank faces a continuing challenge of trying to move inflation towards the state’s 2% target, which will help it boost the economy. Consumer prices and wages are inching up, but a key challenge is the tenacious deflationary mindset among consumers after 15 years of deflation. Demography is also a challenge for Japan, with labour shortages in almost every sector of the economy.
Mark Carney, Governor of the Bank of England, said his country is on the path to normalization. He warned of complex decisions on monetary policy ahead as the Brexit process unfolds, but gave the assurance that the financial sector has been strengthened in the wake of the 2008 crisis and has plenty of safeguards and “shock absorbing capacity”.
Carrie Lam, Chief Executive of Hong Kong SAR, said Hong Kong, as an open economy, was benefiting from global recovery, with full-year growth of 3.7% expected for 2017 against 2% in 2016. Hong Kong is positioning itself to take advantage of opportunities in Asia and particularly China. “We should also take this opportunity to improve governance, to focus more on trade rules, more regulatory collaboration and to put in policies to deal with poverty and income disparity.”
On the long-term global prospects, panellists listed the need to improve productivity, focus on innovation, improve trade and strengthen the World Trade Organization processes, particularly with regard to trade in services. Corporate attention to and financing of efforts with regard to climate change was flagged as a positive long-term development.
The World Economic Forum’s 48th Annual Meeting is took place on 23-26 January 2018 in Davos-Klosters, Switzerland.

More than 3,000 leaders from around the world are gathering in a collaborative effort to shape the global, regional and industry agendas, with a commitment to improve the state of the world.

Coscharis Presents a Ford Ranger to Next Titan Winner

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Abiona Babarinde, General Manager, Marketing & Corporate Communications, Coscharis Group presents the keys to a brand new Ford Ranger to Iyeh Kennedy, winner, The Next Titan Season 4.

Iyeh Kennedy, winner, The Next Titan Season 4 stands next to his brand new Ford Ranger.

Ford Motor Company, in collaboration with its local distributor Coscharis Motors, is honoured to present a brand new Ford Ranger to Iyeh Kennedy, winner of the Next Titan, Season 4. The winner was announced on 10 December 2017.

“Ford and Coscharis Motors would like to take the opportunity to congratulate Iyeh Kennedy on his achievement,” says Abiona Babarinde, GM Marketing, Coscharis Motors. “We are proud to be a sponsor of the Next Titan, and to hand over a Ford Ranger to the winner, to support his existing business.” The 2.2 litre diesel XLT model 4×4 double cab is valued at N16 million.

The Next Titan is a good fit for the Ford brand, as business people with small and medium size enterprises (SMEs) are a significant client base for Ford in Nigeria. The Ranger nameplate, renowned for its outstanding Built Ford Tough capability, technology, convenience, and comfort, is the ideal vehicle for any entrepreneur, be it a tech CEO, farmer, IT business owner, fashion designer, media mogul, hotelier, or supermarket owner.

The Next Titan, the fourth season of which premiered on 8 October 2017, is a global standard television platform designed to educate young Nigerians about entrepreneurship, encouraging them to consider this as a career path, and helping to reduce the high rate of unemployment. Sixteen participants, between the ages of 21 and 39, challenged one another for 10 weeks in various business tasks, including strategy, sales, marketing, and promotions. During the competition, participants and viewers had the opportunity to interpret real-life entrepreneurial challenges through informal training, and to learn from top business leaders how to start or grow their own businesses.

“Coscharis Motors is grateful for the opportunity to collaborate with young, talented Nigerian entrepreneurs, and assist with their business objectives,” says Babarinde. “We will continue to work together with Ford, to build on skills development and training in the country, not just in the automotive industry, but across the board in Nigeria.”

CBN Injected $16bn to Stabilise Forex Market in 2017

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Mr. Godwin Emefiele Governor Central Bank of Nigeria
Godwin Emefiele Governor Central Bank of Nigeria

The Central Bank of Nigeria (CBN) has so far injected $15.9 billion in a period of nine months to stabilise the foreign exchange (forex) market via weekly interventions, according to Mr. Ayodeji Ebo, Managing Director, Afrinvest Securities Limited.

Ebo said at a Forum organised by the Finance Correspondents Association of Nigeria (FICAN) on the theme: ‘Nigeria’s Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ Lagos that the intervention funds started in April and ended December last year. He said the figure was an improvement compared to the $9.6 billion spent in during the same period of 2016.

The Afrinvest chief also said the Investors’ & Exporters’ Forex Window has recorded over $27.8 billion in turnover and brought about transparency and stability in the market.

He added that current account stabilised in surplus position, expanding to $9.6 billion annualised in nine months, from $2.7 billion in fiscal year 2016.

Speaking on loans to small and medium enterprises, he said delay and outright non-payment of borrowed funds by SMEs is making it difficult for key lenders within the sector, including Bank of Industry to grant further credits to operators.

He said it is only when loans are repaid on timely basis that the lender has more capacity to lend to their borrowers.

He said that inflation rate is still higher than Monetary Policy Rate (MPR), which makes it easier for investors to go for fixed income securities like Treasury Bills, Bonds and other instruments that help investors create lasting wealth.

Ebo said 2018 remains an opportunity for investors to make money in both equities and fixed income securities, but advised investors to time their entry and exit accurately in order not to lose their funds.

According to him, there is strong correlation between oil price rise and equities performance, adding that investors always look out for profitable businesses and those with great prospects.

Speaking on the stability in the forex market, he said rate convergence has already been achieved by the CBN, adding that with low exchange rate margin, speculators have virtually abandoned the market.

“Foreign investors also consider the margin between both official and parallel market level. When there is little or no volatility in the market that gives foreign investors’ confidence. The naira gained 35 per cent year-on-year against the dollar to close at N363 to dollar by year-end in the parallel market,” he said.

He said the Economic Recovery and Growth Plan (ERGP) of the Federal Government was built on five pillars, stabilise the micro-economic environment, achieve agriculture and food security, improve transportation infrastructure, ensure energy sufficiency in power and petroleum products and drive industrialisation, focusing on small and medium enterprises.

Local Bourse Extends Losses to Fourth Consecutive Session… NSE ASI Down 99bps

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Following 3 days of negative performance, the local bourse yet again extended losses to the 4th consecutive session as the All Share Index fell 99bps to close at 43,529.06 points while YTD return moderated to 13.8%.

Consequently, investors lost N155.7bn as market capitalisation fell to N15.6tn. Sell pressures across board especially in banking stocks –GUARANTY (-2.0%), STANBIC (-5.0%) and DIAMOND (-9.3%) continued to weigh on performance. However, activity level was mixed as volume traded declined 6.6% to 500.9m units while value traded rose 28.0% to settle at N6.6bn respectively.

Mixed Sector Performance
Sector Performance was mixed today as 2 of 5 indices closed in the red, 2 trended northwards and the other flat. The Industrial Goods index led laggards, down 2.0% following losses in DANGCEM (-3.3%). Likewise, the Banking index shed 0.4% consequent on price depreciation in GUARANTY (-2.0%), DIAMOND (-9.3%) and ETI (-1.5%).

On the other hand, the Consumer Goods index emerged the top gainer closing the day 0.7% higher, as DANGSUGAR (+10.2) and NESTLE (+1.7%) buoyed performance. The Oil & Gas index also appreciated, up 0.3% following a rally in SEPLAT (+1.1%). The Insurance index closed the day flat.

Investor Sentiment Strengthens
Investor sentiment- measured by market breadth (advance/ decline ratio) improved to 0.7x from 0.3x recorded yesterday consequent on 21 stocks advancing against 30 decliners.

Today’s best performing stocks were DANGSUGAR (+10.2%), AFRIPRUD (+4.2%) and UBA (+4.1%) while the worst performers were GLAXOSMITH (-9.7%), CAVERTON (-9.4%) and DIAMOND (-9.2%). We expect a negative close to the week following 4 consecutive days of losses as investors continue to lock in profits.

Market Statistics: Thursday, 25th January 2018

Market Cap (N’bn)                15,603.9
Market Cap (US$’bn)                   51.0
NSE All-Share Index              43,529.06
Daily Performance % (1.0)
Week Performance % (2.9)
YTD Performance %                  13.8
Daily Volume (Million)                  500.8
Daily Value (N’bn)                      6.6
Daily Value (US$’m)        21.7

 

Global Airlines Financial Monitor: December 2018

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IATA
  • The industry-wide EBIT profit margin remained broadly unchanged in Q3 relative to a year ago, at a robust 14.7% of revenues. A decline in the margin in the North American region was partly offset by increases elsewhere.
  • Global airline share prices ended 2017 almost 29% higher than where they started, with sizeable gains for European and Asia Pacific airlines. Airline shares outperformed the global equity market by 7 percentage points.
  • Industry-wide passenger yields are currently broadly unchanged from where they were a year ago. Against a backdrop of robust global economic growth, and rising input costs, we forecast yields to rise modestly in 2018.

FG to Obasanjo: “Buhari Has Performed Creditably”

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Buhari (left) and Obasanjo
Buhari (left) and Obasanjo

Buhari (left) and Obasanjo

The Federal Government has replied former president Olusegun Obasanjo, insisting that President Muhammadu Buhari has indeed performed creditably in office despite dwindling resources as a result of falling oil prices.

Alhaji Lai Mohammed, the Minister of Information and Culture said in a statement in Abuja yesterday that while the FG respects the personal opinion of Obasanjo as contained in his letter of Tuesday to Buhari, the current administration has recorded tremendous achievements within a short period of time in office.

The minister reeled out some of the achievements thus:

This Administration is making steady progress in its determined effort to revamp the economy, and the results are showing:

* Foreign Reserves have peaked at $40b, the highest level in about four years, and up from $24 billion just a year ago, even though when we came in, the price of oil had crashed woefully.

* According to the National Bureau of Statistics (NBC), headline inflation has fallen for 11 consecutive months, standing at 15.37% as at Dec. 2017. This is the lowest inflation rate since Jan 2017, and it has met and surpassed the target set for inflation in the Administration’s Economic Recovery and Growth Plan (ERGP).

* Our determined implementation of the Treasury Single Account (TSA) has stopped the hemorrhaging of the treasury. Some 108 billion Naira has been saved from removal of maintenance fees payable to banks, pre-TSA. The nation is being saved 24.7 billion Naira monthly with the full implementation of the TSA.

*The elimination of ghost workers has saved the nation 120 billion Naira

*At about 1.8 billion dollars, the capital inflows in the second quarter of 2017 were almost double the $908 million in the first quarter.

* In the wake of a stable Naira and increased investment inflows, Nigeria’s stock market emerged one of the best-performing in the world, delivering returns in excess of 40 percent.

* Nigeria rose 24 places on the World Bank’s Ease of Doing Business ranking, and earned a place on the List of Top 10 Reformers in the world.

* According to Q3 2017 figures, agriculture export is up year-on-year by 25%, solid minerals exports are up year-on-year by 78%, raw materials exports are up 70% year-on-year and manufactured goods exports are up 22% year-on-year.

* Government agencies such as the Nigeria Customs Service are reporting highest-ever revenue collection, while JAMB, under the new management appointed by President Buhari in 2016, remitted N7.8 billion to the coffers of the federal government. The total amount remitted by JAMB between 2010 and 2016 was a paltry N51 million!

NIGERIA in 2018: Looking Beneath The Surface

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The global economy outperformed most predictions in 2017, and the momentum is expected to continue in 2018. Interestingly thus far, the recovery is broad-based across most advanced, emerging, and developing economies.

Back home, Nigeria’s economy has recovered from the recession of 2016, and is forecast to grow at its fastest pace in two years in 2018. All economic indicators point to positive direction and the sound of downside risks is barely perceptible.

While we share consensus view of broadly better economic prospect, we should also mention, in Nigeria’s case, the strong commodity risk factor backing the outlook. As a result, in this edition of our report on Nigeria and its markets, we discuss the outlook for 2018 in three different scenarios and specifically, the implications of each scenario. We believe this is the best course to take during recovery in a sub-optimally diversified economy, with weak stabilizers.  This is the year to “look beneath the surface!”

We base the scenarios on developments that are familiar with Nigeria, and hence, consider each of them a likely occurrence. But on balance, we rank the scenarios 2-3-1 in order of likelihood.

Market Statistics:  Wednesday, 24th January 2018

Market Cap (N’bn)                15,759.6
Market Cap (US$’bn)                   51.5
NSE All-Share Index              43,963.40
Daily Performance % (1.0)
Week Performance % (2.1)
YTD Performance %                  15.0
Daily Volume (Million)                  536.4
Daily Value (N’bn)                      5.2
Daily Value (US$’m)        16.9

 

 

Equities Market Extends Losses to Third Consecutive Session… NSE ASI Down 96bps
Losses in the equities market were extended into the third consecutive trading session as the All Share Index fell 96bps to close at 43,963.40 points while YTD return further moderated to 15.0%. Accordingly, market capitalization fell to N15.8tn as investors lost N143.0bn.

Although sell pressure was recorded across board, sustained profit taking in banking stocks – GUARANTY (-2.1%), ZENITH (-3.1%) and FBNH (-4.0%) – was the major drag to today’s negative close. Likewise, activity level softened as volume and value traded declined 27.3% and 32.4% to 536.4m units and N5.2bn respectively.

Mixed Sector Performance
Sector Performance was mixed as 3 of 5 indices closed in the red. The Banking index led laggards, closing 3.1% lower following declines in GUARANTY (-2.1%), ZENITH (-3.1%) and ACCESS (-3.9%). Similarly, the Insurance index lost 1.9% on price depreciation in CONTINSURE (-4.7%) and CUSTODIAN (-1.3%) while sell-offs in ETERNA (-4.9%) pulled the Oil & Gas index 0.1% lower.

On the flip side, the Consumer  and Industrial Goods indices appreciated 0.5% apiece, buoyed by buying interest in NIGERIAN BREWERIES (+2.1%),NESTLE (+0.3%) and WAPCO (+1.0%).

Investor Sentiment Stays Flat
Investor sentiment as measured by market breadth (advance/ decline ratio) stayed flat at 0.3x – same as yesterday – consequent on 11 stocks advancing against 43 decliners. Today’s best performing stocks were MAYBAKER (+4.9%), TRANSEXPRESS (+4.0%) and WAPIC (+3.6%) while the worst performers were FCMB (-9.7%), DIAMOND (-9.6%) and FIDELITY (-9.5%).

Following three consecutive days of sustained profit taking by investors, we do not rule out the possibility of some bargain hunting in subsequent trading sessions.

Global Fund to End Modern Slavery Seeks $1.5bn War Chest

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Speaking at a press conference during the World Economic Forum Annual Meeting in Davos-Klosters, United States Senator Bob Corker of Tennessee, Monique Villa, Chief Executive Officer, Thomson Reuters Foundation, and Gary Haugen, Chief Executive Officer, International Justice Mission, spoke of the urgent need for coordinated global action to end slavery.
Corker highlighted the creation of the Global Fund to End Modern Slavery (GFEMS), a public-private partnership, which will fund programmes to combat modern slavery in the countries where it is most prevalent.

With initial funding from the United States and the United Kingdom, the GFEMS is a bold public-private partnership seeking to develop a $1.5+ billion fund and coordinate a coherent, global strategy to address modern slavery.
Faced with the unprecedented challenge of 40 million people living in modern slavery, GFEMS will collaborate across sectors and geographies with a focus on three core programmatic pillars: rule of law, business engagement and sustaining freedom.

“The United States is grateful to join the UK and other governments around the world who are committed to a comprehensive approach to end modern slavery,” Corker said. “I look forward to engaging other international partners as we embark on what we hope will be a game-changer in this fight.”
In a statement, Jean Baderschneider, Chief Executive Officer of the new Global Fund, emphasized the critical role of business:

“Modern slavery is a crime of economic opportunity. Addressing it in a sustainable way requires a coherent global strategy and mobilisation of resources commensurate with that strategy. This includes close engagement with the private sector as allies and partners. We believe that sustainably ending modern slavery will require market-based solutions and proactive business leadership. There is potential for businesses and investors to drive change like we have never seen before.”
“Effective partnerships are essential to eradicate forced labour,” said Monique Villa, Chief Executive Officer, Thomson Reuters Foundation.

“The Stop Slavery Award, created by us with Anish Kapoor, is a good example of how bold initiatives are able to galvanize corporate engagement. From Adidas to Apple to Walmart, the number of companies applying for the award demonstrates that big corporations are taking action in the fight against slavery and this is very encouraging. To continue bolstering this momentum, we are now partnering with Humanity United to rank the world’s top 300 companies based on their efforts to eradicate forced labour. The index will be called the Know the Chain – Stop Slavery Index.”
“The creation of the Global Fund to End Modern Slavery is an historic opportunity to equip global good intentions with a coherent strategy that could actually end slavery in our lifetimes,” said Gary Haugen, Chief Executive Officer, International Justice Mission.
“We now know that effective law enforcement, excellent survivor services and energized business engagement is necessary to end impunity and put the $150 billion slavery industry out of business for good. Working together we have a unique opportunity to provide freedom to more than 40 million women, men and children currently living in slavery. Now is the time.”
Modelled on the Global Fund to Fight Aids, TB and Malaria, this new initiative provides a vehicle for effective collaboration between the private sector, governments and NGOs to face new global challenges in the Fourth Industrial Revolution.
The World Economic Forum’s 48th Annual Meeting is taking place on 23-26 January 2018 in Davos-Klosters, Switzerland. More than 3,000 leaders from around the world are gathering in a collaborative effort to shape the global, regional and industry agendas, with a commitment to improve the state of the world.

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