The Nation Newspaper

Author: The Nation

  • Sosa Fruit Drink reaffirms commitment to consumers

    Sosa Fruit Drink reaffirms commitment to consumers

    Sosa Fruit Drink, from the stable of Rite Foods Limited, has restated its commitment to prioritising consumers, who are pivotal to the brand’s growth and leading position in the food and beverage segment of the market.

    Assistant Marketing Manager, Rite Foods Limited, Ms. Adebola Adeyinka, gave the commitment last week, while conducting a group of consumers round the company’s world-class factory in Ososa, Ogun State.

    She informed the excited consumers that Rite Foods  remained unwavering in its mission to deliver top-notch products, enhance taste experiences, and contribute to the well-being of communities through its innovative range of offerings.

    The purpose of the trip to the company’s facility was to provide consumers with an up-close look at its production processes that make Sosa Fruit Drink an integral part of their  lives and well-being.

    The randomly selected consumers were taken through the Sosa Fruit Drink production process, beginning with water treatment, leading to the quality control laboratory, the kitchen where various flavor variants are crafted, and the sugar storage unit.

    Others were the Polyethylene Terephthalate (PET) bottle production section, and the stages of labeLling, wrapping, palletising, culminating in the final production stage where the finished products are expertly packaged for distribution, in line with global best practices.

    Consumers, who gained valuable insights into the modus operandi of Sosa Fruit Drink production, left rejuvenated, savoring the brand’s nourishing flavors in line with its mantra, “SOoo smooth.”

    Eulogising the brand’s unique approach to consumer connection, one of the beneficiaries of the trip, Eniola Olayinka, commended the brand for providing an understanding of the automated production, from inception to packaging with modern technology, all with little to no human interface.

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    She appreciated the affectionate manner in which they were treated during the factory tour.

    Another consumer, Peter John, who loves Sosa Orange, applauded the brand’s standout marketing strategy, describing the factory tour as a wonderful experience and expressing excitement about the innovation deployed by the company in the brand’s production.

    He expressed satisfaction and commended the brand for maintaining international manufacturing standards throughout the production stages.

    “Sosa Fruit Drink is the leading brand in the market. My factory experience was fantastic, and I now understand why the fruit drink is the top product in its segment, produced with automated technology in a highly hygienic environment,” one consumer said.

    Others praised the brand’s quality, packaging, and pricing, recognising it as a fantastic value for money. They attested to the uniqueness of Sosa Fruit Drink and celebrated the visit.

    Introduced to the Nigerian market in 2022, Sosa Fruit Drink exemplifies Rite Foods’ commitment to innovation and excellence.

  • Nigerian equities net N121b gains amid global decline

    Nigerian equities net N121b gains amid global decline

    • Access Holdings, UBA, Fidelity lead

    Nigerian equities showed resilience with a net capital gain of N121 billion at the weekend amid widespread negative sentiments across the global stocks markets.

    Benchmark indices for the stock market indicated average gain of 0.33 per cent for the week, nudging the average year-to-date return for Nigerian equities to 31 per cent.

    Nigeria ranked third in the global stock market returns at the weekend, trailing Egypt and Turkiye in a long list of relevant advanced, emerging and frontier markets.

    The performance of the market counteracted the negative position of most global stock indices. United States’ S & P 500 and NASDAQ dropped by 2.2 per cent each. United Kingdom’s FTSE All Share Index depreciated by 1.5 per cent. France’s CAC 40 Index dipped by 0.4 per cent. Germany’s Xetra Dax Index declined by 0.8 per cent. Japan’s Nikkei 225 dropped by 0.8 per cent while India’s BSE Sens declined by 2.5 per cent.

    STOXX Europe, which tracks European markets, returned -0.2 per cent. The MSCI EM Index- which tracks emerging markets dipped by 1.6 per cent while the MSCI FM Index, which tracks frontier markets, dropped by 2.2 per cent. However, China’s benchmark closed positive with average gain of 1.2 per cent, largely due to positive reactions to buy-back proposals from leading Chinese companies.

    Across Africa, most stock markets also closed negative. South Africa’s FTSE/JSE ASI dropped by 0.9 per cent. Kenya’s NSE 20 Index lost 1.9 per cent while Ghana’s GSE Composite Index closed flat. 

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    The All Share Index (ASI) – the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), rose from the week’s opening index of 66,915.41 points to close weekend at 67,136.58 points. Aggregate market value of all quoted equities rose concurrently from the week’s opening value of N36.764 trillion to close weekend at N36.885 trillion.

    Total turnover at NGX stood at 1.446 billion shares worth N25.418 billion in 28,933 deals last week as against 1.496 billion shares valued at N24.284 billion traded in 29,298 deals two weeks ago.

    The trio of Access Holdings Plc, Fidelity Bank Plc and United Bank for Africa Plc were the most active stocks, accounting for 447.283 million shares worth N6.568 billion in 4,877 deals, representing 30.93 per cent and 25.84 per cent of the total equity turnover volume and value.

    Financial services sector led the activity chart with 958.111 million shares valued at N14.371 billion traded in 13,270 deals; thus contributing 66.26 per cent and 56.54 per cent to the total equity turnover volume and value. The ICT sector followed with 129.251 million shares worth N972.593 million in 2,722 deals. Conglomerates sector placed third with a turnover of 95.634 million shares worth N662.545 million in 1,664 deals.

  • Analysts maintained a cautious outlook for the market.

    Analysts maintained a cautious outlook for the market.

    “We expect the direction of market performance to be shaped by the ongoing third quarter earnings season as investors cherry-pick fundamentally sound stocks. Overall, we reiterate the need for taking positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Capital stated.

    Afrinvest Securities said the reclassification of MSCI Nigeria Indices from frontier markets to standalone indices would likely have negative effect on the Nigerian market.

    Analysts however said a strong corporate earnings performance could sustain a positive outlook.

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    Further analysis of the share pricing trend showed that there were 39 gainers and 42 losers last week as against 28 gainers and 46 losers in the previous week.

    Chams Holding led the gainers, in percentage terms, with a gain of 27.52 per cent to close at N1.90. Geregu Power followed with a gain of 20.63 per cent to close at N380 per share. Multiverse Mining and Exploration rose by 19.85 per cent to close at N3.20. U A C of Nigeria appreciated by 19.09 per cent to N13.10 while Tantalizers rose by 17.24 per cent to close at 34 kobo.

    On the negative side, VFD Group led the decliners with a drop of 18.98 per cent to close at N218.20 per share. Consolidated Hallmark Insurance followed with a loss of 10.43 per cent to close at N1.03. Secure Electronic Technology and Sunu Assurances Nigeria dropped by 10 per cent each to close at 27 kobo and 99 kobo respectively while McNichols dipped by 9.68 per cent to 56 kobo per share.

  • Lagos lists Nigeria’s second subnational Sukuk on NGX

    Lagos lists Nigeria’s second subnational Sukuk on NGX

    • N1tr capital raising to fund infrastructure

    Nigeria’s second subnational alternative bond, Sukuk, is opened for trading at the Nigerian Exchange (NGX) as the Lagos State Government (LASG) completed the second issuance under the state’s N1 trillion Debt and Hybrid Instruments (DAHI) Programme.

    The Lagos State Infrastructure Sukuk SPV Plc, the special purpose vehicle of the LASG, at the weekend listed its N19.815 billion 14.675 per cent Series II Fixed Return Forward Ijarah Sukuk on the NGX. The listing marks the commencement of secondary market trading on the Sukuk notes.

    A total of 19.815 million units of LASG Sukuk valued at N19.815 billion were listed at issued price of N1,000 per unit. The rental on the Sukuk is 14.675 per cent, payable bi-annually on May 23 and November 23. Maturity date is May 23, 2030. 

    The LASG Sukuk, the second by a registered Nigerian sub-national, had overshot its target with some 15 per cent within three days of opening, underlining the continuing appetite for alternative investments by Nigerian investors.

    LASG had offered a seven-year, fixed rate, forward-ijarah Sukuk with guidance rental rate of between 14.500 per cent and 14.675 per cent. Minimum subscription was N10 million with multiples of N1 million thereafter.

    The net proceeds of the Sukuk issuance would be used to finance the construction and rehabilitation of the Awoyaya section of the Eti-Osa-Lekki-Epe Expressway.

    The Sukuk issuance came few days after LASG raised N100 billion in a successful start to the sub-national’s N1 trillion long-term infrastructural financing plan.

    Market analysts said the success of the sub-national Sukuk was a good pointer to other states and local governments on the diverse opportunities to raise funds for capital projects from the capital market.

    Market analysts said the success of the Sukuk, barely few days after the ordinary bond issuance, underscored the credit profile of Lagos State.

    The Sukuk was rated ‘Aa’ and ‘Aa-‘ by  Agusto & Co. and Global Credit Rating (GCR), with the ratings alluding to the state’s resilient financial condition, robust financial flexibility, suitable expenditure profile and very strong cash-generating capacity to meet local currency obligations in timely from Internally Generated Revenues (IGR).

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    Lagos State’s IGR is over 70 per cent of the state’s total revenue. In 2021, the state generated total revenue of N771 billion, including IGR of N573 billion.

    The Sukuk was also enhanced by an Irrevocable Standing Payment Order (ISPO) on Lagos States’s share of statutory allocation.

    Offer documents noted that Lagos State is Nigeria’s economic focal point with a Gross Domestic Products (GDP) of N26.6 trillion, cumulative annual growth rate (CAGR) of 11 per cent from 2017 to 2021, representing some 15 per cent of Nigeria’s GDP.

    As part of attractions to investors, the reports pointed out that Lagos State is among the 10 fastest-growing markets in Africa and was ranked the 4th largest city in Africa in 2021, accounting for the location of more than 65 per cent of Nigeria’s industrial capacity. The headquarters for most Nigerian banks are in Lagos as well as top-tier companies and transnational corporations. The state is strategically positioned as a major trade port – with 50 per cent of Nigeria’s port revenue being generated in Lagos from three lighter terminals and two seaports – and a first-choice destination for foreign investors.

    Lagos State is also regarded as a leader in the progression and implementation of the National Sustainable Development Goals (SDGs). Over the last 10 years, Lagos State’s spending on infrastructure development within the state has exceeded some N3 trillion. The focus on infrastructure development is essential, fostering economic growth and boosting the State’s financial capacity, enabling it to attract further capital.

    Osun State had blazed the trails with the issuance of the first Sukuk in Sub-Saharan African with its Osun State N11.4 billion 7-year Ijarah Sukuk in 2013.

  • Fed Govt opens trading on N1.51b October savings bonds

    Fed Govt opens trading on N1.51b October savings bonds

    The Federal Government has listed this month’s savings bonds worth N1.506 billion on the Nigerian Exchange (NGX), paving the way for investors to trade on the bonds issued earlier this month.

    Regulatory circular indicated that a total of 565,149 units of two-year bond valued at N565.149 million and a total of 941,598 units of three-year bond worth N941.598 million were listed at the NGX. The bonds were listed at par value of N1,000 per unit.

    The Debt Management Office (DMO), which oversees government’s debt issuances and management, had on October 11, this year, issued a two-year FGN Savings Bond due October 11, 2025 at a coupon of 11.074 per cent per annum. It also simultaneously issued a three-year FGN Savings Bond due October 11, 2026 at a coupon of 12.074 per cent per annum.

    The coupon payment dates for the bonds, which pay interest rate quarterly, are January 11, April 11, July 11 and October 11.

    The two bonds were continuation of the monthly Federal Government of Nigeria (FGN) Savings Bonds (FGNSBs). The October 2023 issuance is the 76th tranche of the savings bond, introduced in 2017.   

    The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilisation of savings and investments. Minimum subscription to the FGNSB is usually N5, 000 while the bond pays coupon or interest rate on a quarterly basis.

    Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

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    GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

    According to the stockbroking firm, FGNSB enables all Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

    GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

    The bonds are usually listed on the stock exchange for trading, thus providing liquidity for investors who want to exit before maturity.

    Savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government of Nigeria.

  • Dangote Cement’s total assets hit N3.34tr

    Dangote Cement’s total assets hit N3.34tr

    Dangote Cement Plc sustained growths across key performance indicators in the third quarter with total assets rising to N3.345 trillion during the period.

    Interim report and accounts of Dangote Cement for the nine-month period ended September 30, 2023 released at the Nigerian Exchange (NGX) indicated that total sales rose to N1.51 trillion in third quarter 2023 as against N1.18 trillion recorded at the end of the year ended December 31, 2022.

    Shareholders’ funds also rose from N1.079 trillion in December 2022 to N1.366 trillion in September 2022.

    The balance sheet performance was driven by significant improvements in sales and profitability. Group sales rose from N1.18 trillion in third quarter 2022 to N1.51 trillion in third quarter 2023.Gross profit increased from N693.43 billion to N871.86 billion. Operating profit grew from N433.62 billion to N561.01 billion. 

    Profit before tax rose to N404.89 billion in third quarter 2023 compared with N335.90 billion in third quarter 2022. After taxes, net profit incr5eased from N213.10 billion in third quarter 2022 to N277.55 billion in third quarter 2023. Earnings per share thus improved from N12.41 to N16.08.

    The cement group reported 15.2 per cent increase in pan-African cement volumes which rose from 7.4Mt to 8.5Mt. Pan-African volumes refer to the volume of sales by Dangote Cement plants situated outside Nigeria. The volumes were driven by sales from Dangote Cement Plant, Senegal which posted 66.9 per cent increase in sales and Dangote Cement Plant Congo which reported an increase of 60.5 per cent in volumes. Dangote Cement Zambia recorded 18 per cent increase, Ghana 15.5 per cent, South Africa 18.5 per cent, Ethiopia, and Tanzania 6.5 per cent respectively.

    Chief Executive Officer, Dangote Cement Plc, Arvind Pathak, said the positive nine-month result was a combination of strong value proposition, improved operational efficiency and a sustained drive to contain cost amidst an accelerating inflationary environment.

    He noted that the results showed the strength in the diversity of group’s operations, with its pan-African operations generating a record revenue and EBITDA growth of 103.9 per cent and 255.4 per cent, respectively, contributing 41.9 per cent to group volumes.

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    ‘This unprecedented growth was driven by sustained demand across our countries of operation. We will continue to explore emerging opportunities and export strategies around the region to further consolidate the group performance.

     “Looking ahead, we are at the final stage in the completion of our 1.5Mta grinding plant in Cote d’Ivoire, having commissioned our 0.45Mta Takoradi plant in the first half of the year. We are focused on improving our value proposition, anchored on our promise to deliver strong and superior cement to our unwavering customers. I am very pleased with the direction of our business and confident we will finish the year strong,” Pathak said.

    Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa. A fully integrated quarry-to-customer producer, the company has  a production capacity of 35.25Mta in its home market, Nigeria.  Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta;  Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta.

    In addition, Dangote Cement has operations in Cameroon, 1.5Mta clinker grinding; Congo, 1.5Mta; Ghana, 2.0Mta import; Ethiopia, 2.5Mta; Senegal, 1.5Mta; Sierra Leone, 0.5Mta import; South Africa, 2.8Mta;, Tanzania, 3.0Mta and Zambia, which has 1.5Mta plant.

  • Nigerian Breweries posts N57b loss in Q3

    Nigerian Breweries posts N57b loss in Q3

    Nigerian Breweries (NB) Plc recorded a net loss of N57 billion in the third quarter as the leading brewing company struggles with slow sales and rising costs.

    Key extracts of the interim report and accounts of Nigerian Breweries for the nine-month period ended September 30, 2023 showed that turnover increased by 2.1 per cent from N393 billion in third quarter 2022 to N402 billion in third quarter 2023. Gross profit however, dropped from N154.53 billion to N152.56 billion. Operating profit declined from N35.39 billion to N27.26 billion.

    As against pre-tax profit of N19.09 billion in third quarter 2022, the group recorded pre-tax loss of N78.16 billion in third quarter 2023. After taxes, net loss stood at N57 billion in 2023 as against net profit of N14.76 billion in 2022. Earnings per share thus dropped from N1.82 in third quarter 2022 to loss of N6.89 per share in third quarter 2023.

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    The company attributed the negative bottom-line to higher interest costs and a huge increase in foreign exchange losses due to the devaluation of the naira.

    NB stated that lower sales volume, rising input costs as a result of the high rate of inflation and the devaluation of the naira as well as a one-off restructuring cost also impacted its performance negatively.

    The group, however, pointed out that the modest increase in sales was against the background of continuing pressure on disposable income and the socio-political challenges in various parts of the country.

  • Onyema gets West African capital market award

    Group Chief Executive Officer, Nigerian Exchange Group (NGX Group) Plc, Mr, Oscar Onyema has been honoured by the West African Securities Regulators Association (WASRA) for his contribution and support in shaping the integration of capital markets in the region.

    Onyema, the first chairman of the West African Capital Markets Integration Council (WACMIC), was honoured at the West Africa Capital Market Conference in Lagos last week.

    Onyema was the President of the African Securities Exchanges Association (ASEA) between 2014 and 2018.  During his tenure as the pioneer chairman of WACMIC, he led the design of the journey map for phases one to three of capital markets regional integration.

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    The period also saw the WACMIC securing funding partnership with African Development Bank (AfDB) for the project. The phase one sponsorship access was implemented, and the first cross border transaction happened during his chairmanship.

    As Chief Executive Officer of Nigeria Stock Exchange (NSE), Onyema is also credited for his leadership role in the transition of the Exchange into a demutualised, for-profit entity limited by shareholding from its previous mutual, limited by guarantee structure.

  • Dad chose new wife over me – Taymesan

    Dad chose new wife over me – Taymesan

    Content creator Temisan Emmanuel Ahwieh aka Taymesan has claimed he suffered rejection as a teenager.

    He informed his father and mother were teenage lovers who separated after his birth.

    According to him, he was cared for by his grandmother and even when his dad came into his life at some point, he  “chose” his new wife and family over him.

    The podcaster disclosed this in the latest episode of his podcast, ‘Tea With Tay’.

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    Taymesan said: “My dad and mum were teenage lovers. They had me early. So, my granny had to raise me.

    “My dad tried at some point. But the only time that he chose me, somebody got in the way. His new wife.

    “I felt rejection on the highest level. I felt that my dad chose his wife over me and has chosen her till today. And his new family.”

    He said initially he was striving to be successful to prove those who rejected him wrong but after hitting stardom, he realised that “so much damage has been done. So, I started asking God to heal me”.

  • My biggest regret not becoming a lawyer- Shatta Wale

    My biggest regret not becoming a lawyer- Shatta Wale

    Ghanaian dancehall singer, Charles Nii Armah Mensah Jr. aka Shatta Wale, has opened up on how not being a lawyer is the topmost regret of his regrets.

    He said despite being a successful musician it doesn’t bring him fulfilment as  much as being a lawyer would.

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    The self-acclaimed “African Dancehall King” disclosed this in a recent interview with BBC’s Stefania Okereke.

    Shatta Wale said: “My biggest regret in life is that I didn’t become a lawyer.”

    He said he is still contemplating becoming a lawyer “when I make enough money. I know I’m a successful musician, but I wanted to be a lawyer.”