Thread by @ugodre

Good Evening. Welcome to @Nairametrics Corporate News Roundup for the week ended February 16 2019.

This thread is BTU by @BluechipTechNG

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We begin..

@Nairametrics @BluechipTechNG 1. DN Tyre and Rubber Plc sent a notice to the Nigerian Stock Exchange, updating it on its restructuring plans.

@Nairametrics @BluechipTechNG DN Tyre and Rubber Plc used to be known as Dunlop Nigeria Plc, in case you are one of the older folks on the NSE.

@Nairametrics @BluechipTechNG According to the firm, it had recorded significant results with the Federal Government, pertaining to the conclusion of a new automotive policy which had taken into account some policies that had an adverse effect on the company.

@Nairametrics @BluechipTechNG The policy is in the process of being forwarded to the National Assembly for legislation.

The company is also seeking new investors.

@Nairametrics @BluechipTechNG The company's travails one can argue are largely due to a flip flop in government policy.
In 2005, DN Tyre spent $50 million on a truck tyre project.

@Nairametrics @BluechipTechNG The Federal Government in 2006, reduced the tariff on imported tyres from 40% to 10%. This, coupled with poor power supply led to the company shutting down operations in 2008.

@Nairametrics @BluechipTechNG In a bid to pay off N8 billion in loans, the firm in 2012, decided to sell several assets. The transaction was eventually completed in 2014.

@Nairametrics @BluechipTechNG The company has since then imported tyres and continues to run its rubber operations.

@Nairametrics @BluechipTechNG I suspect there could be an increase in the tariff for imported tyres.

On a lighter note, anyone remember the advert Dunlop Elite na baba ?

@Nairametrics @BluechipTechNG 2. Moving on to the telecommunications sector, Nigeria’s telecommunication company, 9mobile, has been conferred the ‘Telecom Company of the Year 2018’ award by Leadership Group Limited, publishers of Leadership newspapers.

@Nairametrics @BluechipTechNG The award was given in recognition of its resilience and stability in the face of challenges over the past two years.

@Nairametrics @BluechipTechNG 9Mobile formerly known as Etisalat Nigeria has had a rocky time in the last two years. From, parent company Etisalat of the UAE pulling out, to banks threatening to take over.

This was followed by a bidding process that was slightly controversial and a prolonged handover.

@Nairametrics @BluechipTechNG Hopefully the award will spur the staff to greater heights.

@Nairametrics @BluechipTechNG 3. Still, in the telco space, a report by Ookla’s Speedtest Global Index showed Nigeria r ranked 105th in mobile Internet download speed as of December 2018, down two places from its 103rd position in November.

@Nairametrics @BluechipTechNG The report indicated that Nigeria’s average mobile Internet download speed in December was the highest in the year, recording 11.70 megabits per second.

The Internet speed was lowest at 9.50mbps in March last year

@Nairametrics @BluechipTechNG I find it that a bit interesting because one would expect December to have slow speed.

In case you are wondering the country that came tops, it is not the United States.

@Nairametrics @BluechipTechNG Iceland clinched the top position in the mobile broadband category globally with an average download speed of 72.77mbps while Norway came second with 65.88mbps.

@Nairametrics @BluechipTechNG 4. Industry regulator, the Nigerian Communications Commission slammed N74 million as penalties on several firms.

@Nairametrics @BluechipTechNG The bulk of the fines was as a result of SIM registration outside a controlled environment.

The NCC consequently placed a fine of N60m and gave them a deadline of September 14, 2018, to pay. MTN was asked to pay N5m; Airtel N20m; Glo N30m; and 9mobile N5m.

@Nairametrics @BluechipTechNG The NCC had in 2017 instructed operators to stop registering SIM cards under umbrellas, kiosks or other uncontrolled environments.

@Nairametrics @BluechipTechNG The rest of the fines were levied due to promotions and adverts unapproved.

For companies with revenue running into billions, these fines are change. One can say, they have 99 problems, but the fines ain't one.

@Nairametrics @BluechipTechNG 5. Moving to the oil and gas space, the Nigerian National Petroleum Corporation (NNPC) and its partners in OML 21 have executed final investment decision (FID) on the onshore Assa North Gas Project in Nigeria’s Imo State.

@Nairametrics @BluechipTechNG Other companies involved in the project are Shell Petroleum Development Company, Total Exploration and Production Nigeria (TEPNG) and Nigeria Agip Oil Company (NAOC).

@Nairametrics @BluechipTechNG SPDC holds a stake of 30% is the operator of the gas project. NNPC is the largest stakeholder with 55% while TEPNG and NAOC hold stakes of 10% and 5%, respectively.

@Nairametrics @BluechipTechNG The project is expected to commence operations between the last quarter of this year and the first quarter of 2020.

At full development, it will add nearly 600 million standard cubic feet of gas per day (mmscfd) to the national gas grid.

@Nairametrics @BluechipTechNG 6. While the NNPC may be partnering with the oil and gas firms, the Federal Government is pursuing revenue arrears.

The suit filed by the Federal Government against Chevron Petroleum Nigeria Ltd, seeking to recover Oil Revenue has been adjourned to April 30th.

@Nairametrics @BluechipTechNG Meanwhile, the court also adjourned a similar suit against Total E&P Nigeria Plc, as the case was also pending before the Appeal Court.

@Nairametrics @BluechipTechNG The case commenced in 2016. when the FG sued some International Oil Companies to recover lost revenues arising from undeclared and under-declared crude oil shipments from Nigeria to different parts of the world.

@Nairametrics @BluechipTechNG This suit is one among other suits instituted by the FG, seeking to recover almost 12 billion dollars in missing crude oil revenue from some international oil companies.

@Nairametrics @BluechipTechNG 7. Switching lanes to the financial sector, the Central Bank of Nigeria has released guidelines for banks pertaining to anti-money laundering

@Nairametrics @BluechipTechNG Banks are to adhere strictly to KYC requirements and report all suspicious transactions.

Word has it that the CBN deducts fines straight from funds held for the banks. So if you get a message from your bank on KYC, please comply.

@Nairametrics @BluechipTechNG 8. Still on money laundering, Ibrahim Magu, acting chairman, Economic and Financial Crimes Commission (EFCC), has accused 10 commercial banks of money laundering.

He made this known during a round table meeting with managing directors of financial institutions.

@Nairametrics @BluechipTechNG According to Magu, intelligence reports have shown that banks are aiding their customers to receive foreign financial inflows to their accounts in neighbouring countries, where they have branches like Ghana, Republic of Niger and other West African countries.

@Nairametrics @BluechipTechNG While no names were mentioned, if you know you know, as is said on these twitter streets.

@Nairametrics @BluechipTechNG 9. Tier two lender Ecobank has gone hard against one of its staff.

Justice Ayotunde Faji of the Federal High Court in Lagos has remanded in prison a Manager with the bank Ifeanyi Chukwu Azike, for allegedly defrauding some of the bank’s customers of N411 million.

@Nairametrics @BluechipTechNG Azike was remanded in prison after his arraignment on a three count-charge of obtaining money under false pretense, false representation and fraud by the Police Special Fraud Unit.

He allegedly committed the offence between 2016 and 2017.

@Nairametrics @BluechipTechNG The accused person without the consent of the bank fraudulently converted the sum of N411 million belonging to the bank to his personal use.

@Nairametrics @BluechipTechNG The monies were to have been used to purchase treasury bills for customers.

@Nairametrics @BluechipTechNG 10. If you have been a decent borrower, bigger credit facilities may be on the way. The, Credit Registry has pledged over N10 billion to connect genuine lenders to borrowers to support their businesses in the country.

@Nairametrics @BluechipTechNG Managing Director of the firm, Jameela Sharrieff-Ayedun, stated that the firm had been able to raise over N10 billion in pledges from two financial institutions.

@Nairametrics @BluechipTechNG The criteria for getting these loans will still depend on the banks, but they are now going to be getting recommendations from us and considered very much quickly. Sharrieff-Ayedun disclosed.

@Nairametrics @BluechipTechNG 11. Tier two lender Diamond Bank Plc has rewarded 15,000 customers with over N5.4 billion in the past 10 years through DiamondXtra promo.

@Nairametrics @BluechipTechNG Karimot Tukur, the bank’s Head, Consumer Banking, said at the DiamondXtra Season 11 launch in Lagos said the bank would reward 4,750 customers with about N400 million in DiamondXtra Season 11 promo.

@Nairametrics @BluechipTechNG Mr Robert Giles, Head, Retail Banking, Diamond Bank disclosed that to be a part of the reward system, all one needs to do is to open a DiamondXtra account and fund it with N5,000, with an increased chance of winning from multiple increments in your savings plan of N5,000.

@Nairametrics @BluechipTechNG The reward scheme is open to new and existing customers with the DiamondXtra account.

@Nairametrics @BluechipTechNG 12. Moving to the real estate scene. Elalan Construction and private equity firm Africa Capital Alliance expect phase 1 of their Bluewaters project to be completed by December 2019.

@Nairametrics @BluechipTechNG The project which consists of 600 apartments is located in Lekki Phase 1. Construction commenced in July 2018 and buyers, have signified commitment for 35% of the units

@Nairametrics @BluechipTechNG 13. In news outside Nigeria, CCHub, an incubation hub has expanded to the East African country of Uganda.

@Nairametrics @BluechipTechNG CcHUB boasts a pre-incubation portfolio of over 60 companies, including digital blood bank, Lifebank, recycling venture, WeCyclers and Budgit, a web platform that simplifies the Nigerian budget and public data.

@Nairametrics @BluechipTechNG Co-founder of CC Hub, Bosun Tijani stated that Rwanda was choosen because of the ease of doing business.

Rwanda Biomedical Centre is the first local company the hub will partner with.

@Nairametrics @BluechipTechNG 14. The Nigerian Stock Exchange, in a circular released last week, has informed listed firms that the Nigerian Code of Corporate Governance is applicable to them.

@Nairametrics @BluechipTechNG The move could thus lead to a gradual shake-up of company boards.

An initial version of the code was mired in controversy when it led to the stepping down of Pastor Enoch Adeboye from the headship of the Nigerian arm of RCCG.

@Nairametrics @BluechipTechNG 15. Last but definitely not the list. three key results were released last week on the NSE.

@Nairametrics @BluechipTechNG Nigerian Breweries released its results for the 2018 financial year.

The numbers were disappointing with revenue dropping by 5% to N324 billion, and profit after tax falling by 41% to N19.4 billion.

@Nairametrics @BluechipTechNG The company will be paying a final dividend of N1.83, bringing total dividend payout for 2018 to N2.43 far lower than the N4.13 paid for the 2017 financial year.

@Nairametrics @BluechipTechNG The company attributed the poor result to a challenging operating environment and an increase in excise duties.

@Nairametrics @BluechipTechNG Transcorp Hotel Plc also released its FY 2018 results last week. Revenue increased by 26% to N17.4 billion. Profit after tax rose by 42% to N3.7 billion. The company has declared a dividend of N0.15 (fifteen kobo)

@Nairametrics @BluechipTechNG Parent company Transcorp Plc had a notable increase in its 2018 numbers. Revenue increased by 30% to N104 billion in 2018, while profit after tax jumped by 94% to N20.6 billion in 2018.

The firm declared a dividend of N0.03 (three kobo) per share.

@Nairametrics @BluechipTechNG That's our roundup for the week. We hope you found this thread useful as you get into a new business week.

Thanks again to @BluechipTechNG for making this possible every week for over a year now. They have been immense for us.

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You can also check this thread and previous ones on my likes. This version will be pinned to my profile for the next one week.

@Nairametrics @BluechipTechNG Thanks and until we do this again next week, have a profitable week ahead.

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