Profile picture
Ugo Obi-Chukwu @ugodre
, 81 tweets, 11 min read Read on Twitter
Hello everyone. Welcome to @Nairametrics corporate news roundup for the week ended May 26th 2018.

This thread is made possible by @BluechipTechNG

Thread Starts here.
This thread is a compilation of some of the top business news from Corporate Nigeria.

Kindly indulge us by retweeting the first tweet of this thread.
If you subscribe to our Newsletters then you must have received this compilation in your email box by now.

You can also get this by subscribing here; See link...

eepurl.com/dvNcb5
Oh...and in case you want to read this thread again, it will be pinned to my profile all week long. You can also get past threads in my likes.

We begin;
1. The IT community was shocked last week after it was revealed that the CBN ordered members of the executive management of E-transact including its CEO Valentine Obi,
Executive Directors, Sullivan Akala, Ike Eze and Chief Technology Officer, Mr. Richard Omoniyi, Head of Operations, Mr. Kehinde Segun to all resign.
This was over an alleged N11 billion fraud perpetrated via its platform by Michael Obasuyi, the Managing Director of Smart Microsystems.
e-Tranzact put up a press release confirming that its CEO and members of its executive management had stepped down but denied any CBN instigated investigation of its accounts by PWC & E&Y.
According to e-Tranzact, the CEO and his team had to step down as the alleged fraud happened under their watch. e-Tranzact is audited by Deloitte.
2. This is not the first time e-Tranzact will get into trouble with the CBN. In 2016, it reported that the CBN fined it a whopping N450 million in infractions on international money transfer and anti-money laundering guidelines.
e-Tranzact is Nigeria’s first award winning multi-application and multi-channel electronic transaction switching and payment processing platform.
It has operations in Nigeria, Ghana, Kenya, Zimbabwe, South Africa, Cote d’Ivoire, and UK and is currently expanding operations to more and more countries in the world.
Considering its status as one of the first fintech companies in Nigeria, this sad turn of events highlights the level of fraud that currently exists in corporate Nigeria.
Despite more than doubling its revenues in the last 5 years, its earnings per share has gone from 5 kobo per share in 2013 to 17 kobo in 2015 and back to 5 kobo per share in 2017.
At N4.55, its share price is currently down 7% in the last year but has more than doubled from its low of N2.11 in November 2016.
3. SEC confirmed during the week that it was still investigating the now botched investment in Unity Bank by Milost. Recall, Unity Bank was in talks with Milost for a 60% acquisition of the beleaguered bank until revelations about Milost had them cancel the deal.
According to SEC’s acting head, corporate communications, Efe Ebelo, anyone found wanting in the case would be sanctioned appropriately in line with laid down regulations.
4. And while we are on Milost, Ibeto Cement also announced that it had executed a Milost Equity Subscription Agreement (MESA) with Milost Global Inc. The binding agreement for a $850 million financing, of which $500 million is in equity and $350 million in debt.
The cement company has also started the process of going public with a reverse merger in the United States in efforts to become a publicly traded company.

It would appear that Ibeto group hasn’t been reading the news lately. Na wa
5. During the week, Union Bank announced the introduction of a “Robotics Process Automation (RPA) technology.” According to the bank, “the RPA is a robotics system that uses software to automate consistently routine financial and banking operations.”
For example, it can use its RPA to solve customer related complaints such as returned money on ATM within hours instead of 3 days like they currently experience.
Not sure why they had to give this process such a sexy name, the technology looks very basic to me.

Anyway, apart from ATMs, the bank plans to apply the solution to all services and processes that ease banking operations for the customer.
This is @Nairametrics thread BTU by @BluechipTechNG
6. So lately, banks have been offering premium account opening products to its customers in exchange for free airport lounge usage. Skye Bank joined the fray last week with the launch of Skye Select account.
This is what Skye Bank says you benefit by opening this account with a minimum opening and operating balance of N200,000.
A free priority pass card, with free annual membership that also includes two free airport lounge usage each year, zero monthly account maintenance fees, a MasterCard Platinum Debit card which offers luxurious discounts and privileges, as well as cross border spending.
You also get a higher spending limit with your card across various electronic channels and enjoy preferential access at all Skye bank branches nationwide.
Now, how this is a good enough incentive to open a premium account in a bank that has been nationalised beats my imagination. Do people actually open bank accounts in exchange for these benefits?
I used to have one with a Tier 2 bank. They will usher me into their lounge and serve me coffee.

Well, I enjoyed it till I realised I was being debited N5k monthly. I jejely closed the account.
7. Nova Bank, one of the newest Merchant Banks in the country released its first set of results during the week.

The bank reported a profit after tax of N510 million for the year ended December 2017.
The bank also reported a gross earnings of N1.5 billion. Return on Equity for the Merchant bank was a meagre 3% considering that its total shareholders fund is N16.5b.
The bank will need to earn more on the naira if it plans to remain competitive. 3% ROA doesn't cut it at all. But then, its their first year so we cut them some slack.
Nova Bank is an entity promoted by former UBA CEO, Philips Odozua and has former CitiBank executive, Chinedu Ikwudinma as CEO.
8. If you had invested N1 million in Ikeja Hotels stock a week ago, then you’d probably have made N450k by now.

The stock has been up 45% in a week and topped the list of best performers. Why the sudden gains?
The NSE recently lifted a suspension of trading of the stock following a board squabble that forced SEC to step in and sack the board about a year ago.

SEC then approved the appointment of an interim Board for the company with Chief Anthony Idigbe, SAN as interim Chairman.
It appears that the squabble has now been resolved following the confirmation of a new board made up of Chief Anthony Idigbe, Dr. Alex Thomopolus, Mr. Waheed Olagunju, Mr. Toke Alex Ibru, Mrs. Fadeke Alamutu, Mr. Kunle Aluko, Mr. Ufuoma Ibru and Alhaji Abatcha Bulama.
While the company opines that the bullish trend of its share price is more fundamental, it appears that this has more to do with a race for ownership of the stock.
BOI still has majority shares in the company with a 13.4% stake. Six other shareholders own between 5 and 9% of the stake each, buttressing why we think there is a scramble for the stock.
9. Nipost revealed during the week that it has finalised plans to go into e-commerce.
Minister of Communication, Mr. Adebayo Shittu, said this at the Indo-Africa ICT Expo 2018 noting that the revolutionary services would ease life, especially in rural areas, and generate revenues for the Federal Government.
Services they wish to render include:
NIPOST banking and insurance, NIPOST property and development,NIPOST transport and logistics, NIPOST e-commerce and NIPOST e-governance.
NIPOST banking and insurance services are in line with the CBN’s financial inclusion drive assuring that the agency will leverage on its 1,500 locations across the country.
Personally, I believe that government has no business in business. Rather than compete with companies who render this service already, shouldn’t Nipost be focussed on solving the logistics issues bedeviling the growth of e-commerce in Nigeria?
10. Ever heard of NatundO foods before? Well, I never did till now. The food processing company, says it has unveiled its Lekki retail business outlet for its existing and prospective customers.
The company sells packaged foods such as low fat chickens, eggs, etc. The company, which was established in 2010, is a subsidiary of Amo Farm Sieberer Hatchery Limited.
This is @Nairametrics Newsletter BTU by @BluechipTechNG.

Have you seen our weekly coverage of the Energy Sector.

Subscribe to get it weekly. See the latest here.

mailchi.mp/nairametrics/e…
11. The curry market welcomed new competition during the week, after Green Diamond welcomed a Japanese made UMA Curry mix seasoning into the Nigerian market.
Never heard of it before now as well. Uma Curry Mix Seasoning is manufactured by Heiwa Foods Industry Ltd. which is one of the biggest food manufacturing companies in Japan.

Looks like there is plenty money in this curry market.
12. Media reports last week indicates that Teleology hired UBS to help it source for the $300m it needs to pay the final instalment for the acquisition of 9mobile.
According to the report, CAC documents list Omar Farouk Edewor and Mohammed Edewor as the only shareholders of the company.
In a related report released by Rencap, banks appear not to be confident about a post-acquired 9mobile. Banks are concerned about the sustainability of 9mobile post-acquisition due to its huge debts, low margins, reducing subscriber base and lack of capital investment.
They believe that due to this, their repayment "will hang in the balance for some time." Part of the deal reached between parties will have the banks receive $301m out of the $800 loans negotiated as 9mobile obligations. Banks have to now restructure the balance $500 million.
It will be restructured over an 8-year period with two years moratorium.

Not that my opinion counts, but I have made it clear that I have strong reservations about this deal.
13. Parthian Partners, a pan African inter-brokerage services firm in partnership with Nigeria’s leading commercial bank, Sterling Bank Plc launched what they claim is the global treasury bills (T-Bills) investment app.
According to them, a first-time investor can download the app from the android app store, register and start investing within five minutes.” Investors will require a minimum amount of N100,000 to invest.
14. Last week, O-Mobile Multimedia Limited, a Nigerian firm that specialises in technology based financial and agricultural services development, reported that it has secured a grant of $10 million from So.Sui.
from So.Sui.Ben Foundation, a Swiss-based non-governmental organisation that promotes development in Africa.
The company said that the grant was facilitated by AFRICUNIA Limited, trading as AFRICUNIA Bank, an innovative banking technology firm that is headquartered in the United Kingdom.
The Chief Executive Officer of O-Mobile Multimedia Limited, Mr. Benjamin Aduli, said that the pact would promote and deepen knowledge of the practice of digital-based services among Africans and thereby reduce poverty.
“We are excited about this ground-breaking pact which involves the creation of awareness about digital banking opportunities, educating governments and the general public about digital banking opportunities."
"We will be developing applications that will help Africans utilise digital banking technology and reduce poverty in the continent,”
Well, we looked up So.Sui.Ben Foundation’s website and did not see this press release there. Also, AFRICUNIA is a digital currency website and says it is the ‘First Indigenous African Cryptocurrency.’
AFRICUNIA is currently in the midst of an ICO, Circulating Supply 500,000,000 AFCASH Price per coin $0.10.

Not sure what to make of this grant.
15. Telnet Nigeria Limited is reportedly near closing a deal to sell controlling stakes in its mobile money business subsidiary, Paycom, to Opera Software, maker of the popular internet browser, Opera Mini.
There are reports that Opera has been in negotiation with Telnet on the acquisition of its mobile money platform and barring any last minute change, Telnet and Opera will formally sign an agreement.
This acquisition by Opera is expected to help extend its mobile payment platform OPay(Opera Pay) into the Nigerian market after its launch in Kenya.
OPay allows a user to fund a wallet from various sources including mobile money, and funds in the wallet could be used for various types of payments.
16. So as expected, shareholders of Forte Oil Plc have approved the company’s plan to restructure its business operations. The approval was obtained at the 39th Annual General Meeting (AGM) in Lagos.
The company plans to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited, and AP Oil & Gas Ghana Limited.
The shareholders, also mandated the board of directors to invest the net proceeds from the divestments in the downstream marketing business. Reasons for divestment.
17. The representative of Peugeot Automobile France in Nigeria, Eric Maydiey, explained why the automobile company granted Dangote Group the franchise to construct and operate a new assembly plant in the country.
According to him, the new Dangote-Peugeot Automobile Nigeria (DPAN) was conceived after Asset Management Corporation of Nigeria, AMCON’s failure to declare the winner for the bidding process of the Kaduna assembly plant over a year after bidding for the company with 52m Euros.
Maydiey also noted that Dangote Group has decided to build another Complete Knock-Down (CKD) auto assembly line in another location in Kaduna, which will be more modern and cheaper to achieve. He further added that the new plant will be ready by 2019.
AMCON however, issued its own press release saying that it has not announced a winner in the bidding process, and noting that its divestment plan in PAN Limited is still on track.
18. Nigerian fintech startup, Lidya announced that it has raised $6.9m in Series A funding. This is coming only 14 months after it raised a $1.25m seed round in March, 2017.
The latest funding round was led by Omidyar Network, with support from Alitheia Capital (via the uMunthu inclusive growth fund), Bamboo Capital Partners, and Tekton Ventures. Existing investors, Accion Venture Lab and Newid Capital also participated.
Alitheia Capital was an early Paga investor. Reports suggest that Lidya gave out over 1,500 business loans to “help MSMEs in the farming, hospitality, logistics, retail, real estate, technology, and health sectors get the capital they need to grow their operations.”
Lidya was founded in 2016 by ex Jumia staff, Tunde Kehinde and Ercin Eksin.
That's our thread for the week. Thanks for reading and hope you found this week's roundup informative and useful.

We love feedback so do keep them coming.

Thanks again to @BluechipTechNG for making this possible.
And BTW are you looking for a job and got what it takes. Check out @CowryWise they are hiring.
Thanks everyone and till we do this again next Sunday, do have a profitable week ahead.

*End*
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Ugo Obi-Chukwu
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($3.00/month or $30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!