Thread by @ugodre

Good Evening. Welcome to @Nairametrics corporate news roundup for the week ended March 23 2019.

This thread is BTU by @bluechiptechng

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We begin.

@Nairametrics @BluechipTechNG Several stories from the oil and gas space, so im taking off from there.

1. The Nigerian National Petroleum Corporation (NNPC) has unveiled plans to extend the ongoing Ajaokuta-Kaduna-Kano gas pipeline system across the Sahara to Algeria in North Africa.

. The corporation’s Group Managing Director, Alhaji Maikanti Baru, said the extension of the Ajaokuta-Kaduna-Kano gas pipeline system is in accordance with the regulating body’s African integration drive.

I am not quite sure how they arrived at this, but I feel there are key regions within Nigeria, the corporation can deal with first.

2. Still, on the NNPC, the corporation, the corporation reported a trading surplus of ₦12.13billion in the oil and gas sector for December 2018. This was revealed in the Monthly Financial and Operations Report by the corporation.

Despite this, challenges remain. In December 2018, pipeline breaches across the Country rose by a whopping 34%

Ibadan-Ilorin, Mosimi-Ibadan, and Atlas Cove-Mosimi networks accounted for approximately 34%, 26 % and 22% of the vandalized points respectively

While nobody ever admits, if you do know anyone vandalizing pipelines, or are involved, please stop.

It is dangerous and could lead to either jail or death if explosions occur.

3. Third and final NNPC story this week, the corporation has commenced the rehabilitation of the first phase of the 210,000 barrels per day capacity Port Harcourt Refinery complex.

The project would be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.

The rehabilitation exercise comes 19 years after the last Turn Around Maintenance (TAM) exercise of the country’s premier refining plant.

4. The Nigerian Liquified Natural Gas (NLNG) Limited has signed a content plan agreement for Train 7 project with the Nigerian Content Development Management Board (NCDMB).

Managing Director/CEO, NLNG, Tony Attah. signed on behalf of his company, while the Executive Secretary, NCDMB, Simbi Wabote, signed for his organization.

Final Investment Decision (FID) for the project is expected to take place by the fourth quarter of the year.

This is a project that should have taken place at least 3 to 4 years ago, so its nice to see progress being made.

On to the banking space.
5. MD of the Asset Management Company of Nigeria (AMCON) has called for the reenactment of the Failed Banks Ac.

The law as at it then was, empowered courts to become debt recovery agents. It also came with tough jail times.

The corporation may have decided to take this hard line due to its wind-down date`
of 2020 being close by.

So if you have refused to settle with AMCON, please do so.

6. Acting MD/CEO of the Nigeria Inter-Bank Settlement System (NIBSS), Mr. Niyi Ajao, stated that the company is working towards doubling the record 285 million point-of-sale (P.O.S) transactions recorded last year

Ajao also stated that capacity enhancement was among the top priorities of the company along with addressing Timeout issues and Reversals.

According to him, 85% of POS transactions recorded a success rate last year.

When last did you use a POS and have a failed transaction?

How long did it take to rectify?

7. The Central Bank of Nigeria has introduced a tier based capital structure for microfinance banks in the country.

The apex bank disclosed this in a circular released last week.

Tier 1 unit microfinance banks must meet a N100 million capital threshold by April 2020 and N200 million by April 2021.

Tier 2 unit microfinance banks, it added, must meet a N35 million capital threshold by April 2020 and N50 million by April 2021.

State microfinance banks must increase their capital to N500 million by April 2020 and N1 billion by April 2021.

A national microfinance bank must have a capital of N3.5 billion by April 2020 and N5 billion by April 2021,

Prior to this, the minimum capital base for national microfinance banks was N2 billion, state microfinance banks were N100 million, while the unit microfinance banks had a minimum capital requirement of N20 million.

The move could lead to more MFBs as they are called, listing on the NSE.

8. Ecobank Transnational Incorporated has refuted last week’s media reports that claimed it was ordered to forfeit the sum of N22.5 billion.

The money was realised from alleged wrongful sale of shares in Airtel Networks Limited.

According to the bank, the suit in question is due for hearing May 28th, 2019. There had been no material development in 2017.

Now, moving to tech and ICT.
9. There are plans by Nigerian telecommunication companies to increase its tariff rates on outgoing calls based on users’ state of residence.

The telcos intend to engage a consultant to carry out a cost-based study.

So if you live in a state that gives telcos trouble, you may have to pay more for a phone call. Except the NCC steps in.

10. Airtel Nigeria is reportedly considering listing on the Nigerian Stock Exchange.

The speculation about Airtel’s possible listing follows a meeting held at the headquarters of the NCC in Abuja, which had three key officials in attendance.

The Managing Director/Chief Executive Officer, Bharti Airtel Africa, Raghunath Mandava; Managing Director, Airtel Nigeria, Segun Ogunsanya; Chief Executive Officer, NSE, Mr. Oscar Onyema; and the Executive Vice Chairman, NCC, Prof Umar Danbatta.

Airtel Nigeria has not denied that statement, so who knows it could be in the works.

11. Nigerian tech company, One Finance Limited (OneFi) has acquired Amplified Payments Ltd (Amplify), a fintech company that builds and facilitates payment solutions and digital financial transactions in Nigeria.

The startup had recently obtained a $5 million from Lendable, a Kenyan based firm, and unveiled plans to transform into a digital bank.

So could this be one of several moves?

12. Agri fintech (Is there a word like that ? ) Farmcrowdy has secured an additional $1 million seed funding from international investors, Cox Enterprises and Techstars, along with local investor Ajayi Solutions.

Seed funding is the first official money, a startup receives. Usually, after it has picked traction.

In 2017. the fintech had also received $1 million in seed funding.

It is also preparing for a Series A fundraising later in the year.

2019 seems to be a good year for the tech space.

Moving on to industry

13. Nigerian Breweries Plc (NB) has entered into a strategic partnership with CrossBoundary Energy to pioneer Nigeria’s first solar-powered brewery.

The solar energy plant will become operational this year, supplying 1GWh annually to the Ibadan brewery at a significant discount to their current cost of power, while reducing the site’s CO2 emissions.

I'm really excited about this, and I will be paying close attention to NB's financials.

The amount of money spent on generating power in Nigeria is mind-boggling.

14. CBN Governor Godwin Emefiele (fondly known as Meffy in some quarters) has replied criticism from the Lagos Chamber of Commerce and Industry (LCCI) of a ban of textiles from the official FX market.

Mr. Muda Yusuf the LCCI DG had argued that before such policy is executed, there should have been a strategic approach.

The Federal Government would have strengthened the capacity of domestic industries, enhance their competitiveness, and then reduce their import dependence.

In his view, the FX ban could affect Nigeria’s position in the Fashion industry which Nigeria leads.

He asserted that the range of fabrics produced by the Nigerian textile industry, could not support the industry in terms of the quantity and quality.

Meffy in his response stated that previous strategic approaches such as a high import duty had not worked.

The year is still young, so time will tell which of them will be proven right.

What item do you think will be banned next at this rate ?
MPC meeting will kick off in a matter of hours. That should provide an inkling.

15. Last and definitely not the least. Some key activities at the NSE this week.

Cadbury Nigeria Plc released its full year 2018 results. While revenue rose marginally, profit after tax jumped by 176% to N823 million. The company declared a dividend of N0.25 per share.

Mrs. Olayimika Adeboye has been appointed Managing Director effective April 1, 2019.

She is the first lady to head Cadbury Nigeria in over 5 decades of existence.

NASCON Allied Industries Plc released its results for the 2018 financial year. T

There was a decline in all indices: revenue, profit before tax and after tax. I suspect the Apapa logjam contributed to this.

The company has proposed a N1 dividend, down from N1.50 in 2017.

Julius Berger released its full-year 2018 results.

Topline and the bottom line showed significant improvement.

Revenue increased by 37% while profit after tax jumped 142% to N6.1 billion in 2018.

This also filtered to shareholders as the company has declared a dividend of N2 per share.

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