The Nation Newspaper

Author: The Nation

  • Nigeria to diversify forex with gold trading

    Nigeria to diversify forex with gold trading

    By Ibrahim Adam

    Nigeria is expected to deepen its foreign exchange (forex) earnings with the impending listing of Dukia Gold’s diversified financial instruments on the Lagos Commodities and Futures Exchange (LCFE). The Dukia Gold’s diversified financial instruments are backed by gold as the underlying asset in a sector worth over N300 trillion.

    Chairman, Dukia Gold, Mr. Tunde Fagbemi, who spoke at a pre-listing media parley in Lagos, said the listing and commencement of trading on the gold-backed assets would generate forex for the government to diversify external reserves, increase capacity and create employment across the metal production value chain.

    He said the instruments which would be in the form of exchange traded notes, commercial papers, and other gold-backed securities would enable the company to deepen the commodities market in Nigeria.

    He noted that the crude oil and the cocoa market would have had a better outing if there were strategies put in place to regulate it right from inception.

    Fagbemi, who applauded the Ministry of Mines and Steel Development and the Securities and Exchange Commission for supporting the trading of gold in Nigeria, noted that it remained one of the ways to diversify Nigeria’s sources of foreign exchange.

    “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange.

    “The listing shall enable us to facilitate our infrastructure development, expand capacity and create fungible products.

    “This has the potential to shore up Nigeria’s foreign reserve and create an alternative window for the preservation of pension funds,” he said.

    He explained that gold-backed security was a hedge against inflation and convenient preservation of capital.

    “We have refinery services to smelt metals with the capacity to meet local and international demand. As a global player, we comply with the practices and procedures of the London Bullion Market Association and many other international bodies.

    “Our refinery will also have multiplier effects on the development of rural areas anywhere it is located. There must be constant power supply, good road network, and other social amenities, apart from employment opportunities for the rural dwellers,” he said.

    Divisional Head, Strategy and Business Solutions, Heritage Bank, Olusegun Akanji, said the bank had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.

    Akanji said every transaction was auditable to protect investors.

    The Managing Director, LCFE, Akin Akeredolu-Ale, commended the Securities and Exchange Commission (SEC) for issuing the Exchange licence to trade gold.

    He said commodities exchanges played strategic roles in introducing structures into the ecosystem, which was in urgent need of regulation, funding, and data collation

    “Nigeria’s International Trade in Solid Minerals and commodities is behind par and the absence of a listed gold investible instrument on a commodities exchange limits the export potential for the exploration of solid minerals in Nigeria, particularly Gold.

    “The need to harness the potential growth in the Nigerian solid mineral/gold sector and commodity trades justifies the timely establishment of a gold trading platform and the objectives of the promoters of Dukia Gold,” he said.

    He said the LCFE was ready to support stakeholders in the gold sector in the areas of market creation, price discovery, dissemination of market information, among others.

    The Chief Technical Officer, Dukia Gold, Akin Akintola, said the company was determined to put the nation on the map and at par with the world’s major gold and precious metals refining and producing nations.

    Akintola emphasised that the firm had the capability, technicalities and the necessary accreditation to operate in the gold value chain.

     

  • Unilever Nigeria assures on good corporate governance

    Unilever Nigeria assures on good corporate governance

    By Muyiwa Lucas

    The board of Unilever Nigeria Plc has assured shareholders of its commitment to good corporate governance to drive sustainability and efficiency across the company’s operations.

    Addressing shareholders at the 96th Annual General Meeting (AGM), Chairman, Unilever Nigeria Plc, HRM, Nnaemeka Achebe  said the company recorded a turnover of N62 billion for the year ended December 31, 2020.

    He commended the shareholders for their trust and loyalty to the company despite the challenges posed by the COVID-19 pandemic in the year under review.

    He added that the company will remain strategic in its approach to attaining sustainable growth and profitability.

    According to the company’s financial report, there was a 2.4 per cent year-on-year increase in revenue from N60.8 billion to N62 billion in the year under review. The increase was driven by 7.3 per cent year-on-year growth in its food products, which was slightly offset by a three per cent revenue drop in the home and personal care segments.

    He said the results reflected a challenging operating environment with significant disruptions and volatilities, but Unilever Nigeria continued to build its resilience to navigate the impact of headwinds.

    Achebe added that the company remains focused on its strategy to deliver sustainable growth both in the medium and long-term riding on the pillars of operational efficiency, cost optimisation, purposeful brands and increasing market share across key categories.

    “We continue to monitor the business environment and respond appropriately to volatilities in the operating environment as well as disruptions from the Covid-19 pandemic,” Achebe said.

    In compliance with the Federal and State government directives on social distancing as part of measures to reduce the spread of the coronavirus, this year’s AGM was hybrid with most of the shareholders joining virtually.

     

     

  • FrieslandCampina WAMCO records N199.5b turnover

    FrieslandCampina WAMCO records N199.5b turnover

    By Chikodi Okereocha

    FrieslandCampina WAMCO Nigeria Plc recorded a turnover of N199.5 billion in 2020.

    Speaking at the company’s 48th Annual General Meeting (AGM) in Lagos, Chairman, FrieslandCampina WAMCO Nigeria Plc, Mr. Moyo Ajekigbe said  the challenging operating environment last year, notwithstanding, the company’s commercial and financial performance for the year showed considerable improvement compared to the previous year.

    According to him, turnover increased by 23 per cent in 2020 to N199.5billion, from N161.8billion the previous year. This was due to a combined effect of organic and inorganic growth following the acquisition of Nutricima’s dairy business. Profit before tax, however, decreased by 20.3 per cent from N18.8 billion in 2019 to N14.9 billion in 2020, as a result of high input costs and naira devaluation impact.

    All the resolutions submitted for shareholder approval were adopted, including the approval of a total dividend payout of N6.74 per N0.50 share.

    Managing Director, FrieslandCampina WAMCO Nigeria Plc, Mr. Ben Langat said last year was shaped by the company’s continued focus on sustainable business processes.

    He said the company leveraged its brands and superior commercial expertise to deliver impressive volumes during the year.

    According to Langat, FrieslandCampina WAMCO continues to be committed to nourishing Nigerians with quality dairy nutrition and it will continue to take necessary steps to ensure that the growth momentum is sustained.

    Explaining the company’s response to COVID, Mr. Langat said from the very first signs of the Covid-19 pandemic, the company defined three absolute priorities; protecting the health and safety of its employees; doing all that is necessary to ensure business continuity; and supporting Nigeria to manage through the crisis.

    He said a donation of N500 million was, therefore, made to the COVID Relief Fund, while over N100 million worth of products were donated to low income communities during the lockdown.

    Following its expansion drive, FrieslandCampina WAMCO acquired Nutricima factory in Ikorodu during the year under review. The acquisition underlined FrieslandCampina WAMCO’s continued commitment to contribute to the development of the Nigerian dairy sector.

    It also satisfied the need for additional production capacity for FrieslandCampina WAMCO to meet the growing consumer demand for locally produced dairy.

    Also, under its backward integration strategy, the business aggressively expanded its activities to strengthen the dairy value chain in Nigeria. And significant to this was the establishment of the Center for Nigerian Dutch Dairy Development, Nigeria’s first national expertise Center for dairy, committed to unlocking and developing homegrown dairy expertise across the value chain.

    The business also established the Value4Dairy Consortium, a formidable partnership of FrieslandCampina WAMCO, URUS, Barenbrug and Agrifirm, committed to accelerate self-sufficiency in Nigeria’s dairy sector.

    A look at Q1 2021 activities indicated continued economic headwinds in a volatile and uncertain business environment. However, FrieslandCampina WAMCO remains positive about the future of its business in Nigeria.

    The business is confident that its brands, which are well known, will continue to grow on the back of our strong business fundamentals and unique route-to-market strategy to achieve its business ambition.

     

     

     

     

  • We’re reinvesting earnings to drive future growth, says Sterling Bank

    We’re reinvesting earnings to drive future growth, says Sterling Bank

    The Board of Sterling Bank Plc has explained that its decision to adopt a modest sustainable dividend policy was in line with the bank’s long-term commitment to creating sustainable shareholders’ value and grow its business continuously in spite of macroeconomic challenges.

    Addressing shareholders at the bank’s Annual General Meeting (AGM) in Lagos, Chairman, Sterling Bank Plc, Mr Asue Ighodalo, said the bank places priority on the interest of shareholders while maintaining adequate capital buffers to support the sustainable growth of the business.

    Shareholders approved the payment of a dividend of five kobo per share for the 2020 business year amidst commendations for the board and management of the bank.

    Ighodalo said the dividend payment reflected the bank’s focus on long-term and sustainable value creation for its shareholders and other stakeholders.

    He assured the shareholders that the board and management of the bank are committed to delivering value to them as they continue to drive the growth and profitability of the business towards creating a world-class financial institution of choice.

    He noted that in spite of the challenges caused by COVID-19 pandemic in 2020, the bank remained focused on continued strategic development of its core pillars of digitisation, agility and specialisation.

    He said the bank has engaged with existing and potential customers and responded to market trends and developments, maintaining its long-standing commitment to innovation.

    “Sterling Bank sustained an improvement in business performance during the year under review despite the harsh economic environment triggered by the Covid-19 pandemic. Although earnings declined by 7.5 per cent to N138.9 billion, we delivered a 15.9 per cent growth in profit before tax and a 6.0 per cent growth in profit after tax to N12.4 billion and N11.2 billion,” Ighodalo said.

    He noted that in line with the commitment to drive operational efficiency across the organisation, the bank achieved a 2.5 per cent reduction in operating expenses as it continues to leverage on past investments made in technology.

    He said the bank closed the year with an improved balance sheet position as total assets grew steadily by 9.8 per cent to N1.3 trillion in 2020. This was driven by consolidated efforts in mobilising customer deposits, leading to a record 6.5 per cent growth in deposit base to reach N950.8 billion from N892.7 billion in 2019.

    Ighodalo said the bank achieved a 39.5 per cent growth in low-cost current and savings accounts deposits resulting in an improved deposit mix of 78.9 per cent in CASA/total deposit during the year under review. He said this contributed largely to the improved cost of funds from 6.3 per cent in 2019 to 4.7 per cent in 2020 below the five per cent threshold. The bank also grew shareholders funds by 13.5 per cent to N135.8 billion on the back of a rise in retained earnings.

    Shareholders who spoke at the meeting commended the board and management for the resilience, improved financial performance and returns on investment in 2020 despite the adverse impact of the Covid-19 pandemic on the global and local economic environment.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS),  Dr Faruk Umar described the bank’s performance as excellent and commended it for its accounts’ quality.

    A shareholders’ leader and Managing Director, Lancelot Ventures Limited, Mr Adebayo Adeleke, commended the bank for implementing a deliberate market-focused strategy.

    President, Nigeria Solidarity Shareholders Association (NSSA), Mr Matthew Akinlade, noted that the bank has consistently been improving its earnings per share in the last five years.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, applauded the bank for significant growth in total assets and deposit base while noting improved retained earnings, increased profit before tax and reductions in operating costs and non-performing loans achieved during the year.

    National Chairman, Progressive Shareholders Association, Mr Boniface Okezie, noted the bank’s consistent dividend payout while urging it to continue to pursue its repositioning strategies aggressively to ensure it competes favourably in the industry.

     

  • Jaiz Bank grows profit by 54% to N979.2m in Q1

    Jaiz Bank grows profit by 54% to N979.2m in Q1

    Nigeria’s premier non-interest bank, Jaiz Bank Plc recorded strong growths in the top-line and bottom-line in the first quarter of this year, with pre-tax profit rising by 54 per cent to N979.2 million within the three-month period.

    Interim report and accounts of Jaiz Bank for the period ended March 31, 2021 released at the Nigerian Exchange (NGX) Limited showed that gross earnings rose by 45 per cent from N4.18 billion in first quarter 2020 to N5.99 billion in first quarter 2021. Profit before tax leapt from N636.69 million to N979.17 million.

    The results further improve the earnings outlook of the bank, with consistent earnings reassuring all stakeholders and the investing public that the bank may surpass expectations by the end of the current business year.

    Jaiz Bank had distributed more than N833 million as cash dividend to its shareholders for the 2020 business year. With the bank’s earnings per share increasing from 1.88 kobo in the first quarter of last year to 2.82 kobo in the first quarter of the year, market analysts expected to see improved shareholders’ value this year.

    Managing Director, Jaiz Bank Plc, Hassan Usman said the first quarter results reflected a continuation of the bank’s positive performance in 2020, where it recorded a profit before tax of N3.07 billion.

    He assured that with a strong start to the year, the bank is positioned to maintain this positive outlook for the whole year.

    According to him, Jaiz Bank, as the premier non-interest bank in Nigeria, will maintain its remarkable earnings streak and its leading position in non-Interest banking in Nigeria.

    He assured that with its investments in technology and the expansion of its retail market drives, the bank is set to meet its profit forecasts and dividend promise to its shareholders.

    The first quarter performance places the bank in good stead to achieve its second quarter forecasts. The board of the bank had affirmed that it would remain profitable with above average double-digit profit margin of 14.3 per cent in the second quarter with gross earnings of N6.43 billion within the three-month period.

    Second quarter forecasts for the period ending June 30, 2021 released at the NGX indicated that the non-interest bank continues to expect profitable performance across all indices.

    The forecasts signed by Executive Director of Operations and Chief Finance Officer, Jaiz Bank Plc, Mr. Abdulfattah Amoo, projected gross earnings at N6.43 billion, including financing incomes of N6.07 billion and other incomes of N358.88 million within the three-month period between April and June, this year.

    Financing expenses are projected at N1.23 billion, leaving net revenue from funds at N4.84 billion. Credit impairment is estimated at N750 million while net operating income is expected at N4.45 billion. With operating expenses estimated at N3.53 billion, profit before tax is projected at N918.06 million. After taxes, net profit is expected at N826.26 million.

    Jaiz Bank had in a five-year projection made available earlier to the investing public forecast that it would grow its income and profitability consecutively over the five-year period, with pre-tax profit for the period expected to be about N15.86 billion.

    The management of the bank had outlined the five-year growth plan of the pioneer non-interest bank, with an assurance that it would sustain year-on-year growth over five-year period.

    Usman had explained that the overall vision of the bank was to become the leading non-interest financial institution in Sub-Saharan Africa.

    He said the bank has been positioned to sustain its growth trajectory, pointing out that the bank has the necessary resources to achieve its growth targets.

    According to the five-year financial forecast, total income was expected to be about N81.17 billion while profit after tax was projected at N11.09 billion for the five-year period. Gross income was expected to rise to N10.07 billion in 2018 and subsequently to N12.59 billion, N15.73 billion, N19.27 billion and N23.51 billion in 2019, 2020, 2021 and 2022 respectively.

    Profit before tax was projected to rise to N1.33 billion in 2018 and grow consecutively to N2.03 billion, N3.01 billion, N4.03 billion and N5.47 billion in 2019, 2020, 2021 and 2022 respectively. After taxes, net profit would rise to N927 million in 2018 and grow further to N1.42 billion in 2019. Profit after tax was projected to jump to N2.11 billion in 2020 and rise consecutively to N2.82 billion and N3.83 billion in 2021 and 2022 respectively.

    Balance sheet of the bank was also expected to increase over the years. Total assets was projected at N123.61 billion in 2018 and subsequently to N150.5 billion, N182.6 billion, N220.02 billion and N262.80 billion in 2019, 2020, 2021 and 2022 respectively. Deposit was projected to rise consecutively to N88.55 billion, N113.34 billion, N142.81 billion, N177.09 billion and N216.05 billion in 2018, 2019, 2020, 2021 and 2022 respectively. Shareholders’ fund was projected to rise to N28.6 billion in 2018 and grow consecutively to peak at N35.23 billion by 2022.

    Shareholders’ return was also expected to grow over the years. Return on equity was expected to firm up to 4.39 per cent in 2018 and improve consecutively to 4.87 per cent, 6.92 per cent, 8.79 per cent and 11.22 per cent in 2019, 2020, 2021 and 2022 respectively.

    Usman said the bank’s growth strategy of focussing on the real sector, though painstaking, will ensure sustainable growth and better returns over the years.

    According to him, Jaiz Bank wants to develop small and medium enterprises (SMEs), grow with them and support them not only for profit making but to ensure the country achieves real growth.

    “We shall continue to internally develop new customers, new markets and new product for both our physical and virtual channels. We remain committed to continuous up-scaling of our governance mechanism to meet the highest operating standards. Cost efficiency is at the heart of our value creation model. We shall strive to be a low cost operator,” Usman said.

    He noted that while the bank would continue to expand its operations across the country by opening more branches, it will significantly leverage on technology to reach the nooks and crannies of the country and bring the semi-banked and unbanked population into the formal economy.

     

     

  • 11 delists shares after 42 years at stock exchange

    11 delists shares after 42 years at stock exchange

    By Taofik Salako, Deputy Group Business Editor

    1 Plc, formerly known as Mobil Oil Nigeria Plc, at the weekend delisted its shares from the Nigerian Exchange (NGX) Limited, ending its 42-year listing on a regular stock exchange.The high-profile delisting shaved off more than N82 billion from the market capitalisation at the NGX.

    11 had opted for voluntary delisting after its new owners pushed through shareholders delisting programme as part of restructuring of the downstream oil company.

    The NGX stated at the weekend that it delisted the entire share capital of 11 from its Daily Official List in line with the approval of the shareholders of 11 to delist the petroleum company.

    NIPCO Investments Limited, a wholly owned subsidiary of NIPCO Plc, had in March 2017 took over the 60 per cent majority equity stake of ExxonMobil Oil Corporation in Mobil Oil Nigeria Plc in a $301 million acquisition deal. It subsequently changed the name of the company to 11 Plc, pronounced as double one. The name change was sequel to the resolution passed by the company’s shareholders at its annual general meeting held on May 24, 2017.

    ExxonMobil and Nipco had, in October 2016, executed a sale and purchase agreement (SPA) to sell the former’s majority equity stake of 60 per cent in Mobil Oil Nigeria (MON) to Nipco, an indigenous oil and gas company.

    Explaining the rationales for the delisting to shareholders, 11 stated that the delisting of its shares from the NGX would enable the company to implement strategic plans that will improve the performance of the downstream oil company.

    The company stated that delisting would enable it to explore strategic opportunities, alliances and collaborations that can bolster earnings and synergised benefits with little or no regulatory obligations.

    According to the company, delisting will lead to greater focus and impact on the performance of its performance while it will not have any material changes on its operations, staff and board compositions.

    “11 Plc will be able to focus on revenue generation, consider strategic opportunities, alliances and collaborations; and tremendously shift from regulatory, administrative, and financial reporting regulations that companies listed on the Nigerian Stock Exchange must adhere to,” 11 stated.

    The company stated that while its shares would no longer be available for trading on the NSE, now NGX, upon delisting, it will continue to operate as an unlisted public company. This raises possibility of its shares being listed and traded on the NASD OTC Securities Exchange -the over-the-counter platform for trading of unlisted public companies.

    The company noted that the delisting will not have any impact on the existing employment contracts of its staff as well as the composition of the board of directors.

    Shareholders of 11 had at their Annual General Meeting (AGM) on October 14, last year approved a resolution to delist the entire 360.6 million ordinary shares of 50 kobo each of 11 from the NSE.

    Under the delisting, shareholders, who prefer to remain with the company as unlisted public company, would continue with the company but those who indicate their dissent will be paid exit consideration. Dissenting shareholders shall be paid off. Upon the expiration of the March 01, 2021 deadline for dissent, 11 was required to set aside sufficient funds and provide evidence of funding to the Exchange, to demonstrate that it has the financial resources to settle any dissenting shareholder.

    The interest of dissenting shareholders shall be bought by the company for a consideration of N213.90  per ordinary share, being the highest price at which 11 shares have traded, six months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the NSE.

    Once the transaction is approved by the Securities and Exchange Commission (SEC) and the NSE, the shares of the company shall be expunged from the daily official list of the Exchange. Furthermore, all dissenting shareholders would be settled and cease to be shareholders of 11.

    The board of 11 said the delisting had taken into consideration the benefits of shareholders based on the terms and conditions of the proposed delisting.

     

  • Lagos to regenerate two slum communities

    Lagos to regenerate two slum communities

    By Okwy Iroegbu­-Chikezie

    The Lagos State Government has unveiled plans to regenerate Otto and Otumara slum communities in the mainland axis of the state.

    Commissioner for Physical Planning and Urban Development, Dr. Idris Salako, in an interview with The Nation, said the regeneration was in line with the development agenda of the state and would culminate in the creation of a new micro city with better urban aesthetics and vibrancy in Otto and Otumara.

    He added that the creation of a micro city in those locations would complement the proposed revamping of the National Arts Theatre by the Federal Government, through the Central Bank of Nigeria- led Committee of Bankers.

    Salako stated that the micro city would be delivered with the upgrade of socio-economic amenities like hospitals, clinics, schools, market and water, among others.

    He added that there would be preservation and conservation of ecologically sensitive land spaces such as buffer zones, earth drain, floodplains and waterfronts as well as the creation of new viable economic activity centres, including residential-led mixed use.

    Meanwhile, to ensure that no part of the state is without a plan, the government has extended development plans to 30 Communities, spread across various local government areas of the state.

    The communities that have had their local action plans prepared included Lafiaji Action Area Plan(2021-2031) in Eko District, Abule Oja Action Area Plan (2021-2031), Ajiwe Action Area Plan(2021-2031), Review of Maiyegun and Action Area Plan of an Extension to Aparakaja Casia/Abiodun Dada.

    The government also undertook the review of Ojodu Core Action Area Plan and prepared Ilo Awela Community Action Area Plan,  Igbogbo Core Action Area Plan and Ologunebi Excised Village Action Area Plan as well as Shasha Oguntade Action Area Plan and  Ladipo Osoro Action Area Plan among others.

    Salako noted that the state would derive maximum benefits from the preparation of the action area plans, including effective control and proper development guide within its jurisdiction, functional land use pattern and arrangements, good road networks while urban regeneration of the slum environment would be achieved.

    According to him, other benefits are the provision of enabling environment for category of land uses, such as industrial, commercial, institutional and residential as well as investments in a sustainable manner.

    He also explained that the development plans would bring about the provision of quality infrastructural developments within the planned area and guarantee a sustainable physical environment during the stipulated planning period.

    He added that in pursuit of the THEMES Agenda, his ministry also prepared development guide plans for some excised villages in the state.

    “In same vein and with due cognition of the need to extend physical planning administration to non-schemed areas, development guide plans are being prepared to make the excised villages more sustainable,” Salako said.

    According to him, development guide plans were prepared for several villages in different local government areas of the state including Onimedu Eleputu, Lakowe, Adeba, Bogije, Igando-Oja and Awoyaya in Ibeju-Lekki local government area;  Ajangbadi, Kemberi and Ketu Ijanikin in Ojo area;  Parafa and Gberigbe in  Ikorodu and Sangotedo and Langbasa in Eti-Osa area.

    Development guide plans were also extended to Suberu-Oje in Alimosho;  Apa-parcel A in Badagry;  Ibowon in Epe and Tedi in Amuwo-Odofin area.

     

  • Bombardier records $251m loss in Q1

    Bombardier records $251m loss in Q1

    By Kelvin Osa-Okunbor

    Canadian airplane manufacturer, Bombardier’s operating business lost $251 million in the first quarter of the year.

    Bombardier, however, ended the first quarter with cash and cash equivalents worth $3.1 billion, up from $1.8 billion at the end of last year.

    Chief Executive, Bombardier, Eric Martel said the aerospace industry has turned a corner insisting   an upswing is under way.

    The company delivered 26 business aircraft during the three months, including eight of its flagship Global 7500s, matching overall output for the first quarter of 2020.

    Excluding interest, taxes, depreciation and amortisation, however, Bombardier earned a $123 million profit, up 43 per cent year on year.

    In the year, Bombardier anticipates delivering 110 to 120 business jets, generating more than $5.6 billion in revenue and achieving an adjusted profit before interest and taxes of more than $100 million.

    By comparison, Bombardier delivered 114 business jets in 2020 and 142 the previous year.

    Revenues from business aircraft activities in 2021 are expected to be better than 2020 based on a gradual economic recovery scenario.

    Bombardier’s targets include expanding its aftermarket business to account for 27 per cent  of revenue by 2025, reducing Global 7500 unit costs 20 per cent  by the 100th delivery, and removing $400 million in costs from its business yearly by 2023. Bombardier delivered its 50th Global 7500 in March.

    “We are in a very different and better place than we were a year ago. Most market trends and indications are pointing to a gradual economic reopening and recovery. the worst of this pandemic may be behind us,” Martel said in an interview.

    Despite signs of recovery, Bombardier has not signalled an intention to boost Global 7500 output.

    Martel said the company would remain discipline with production rates until further industry stabilisation is seen.

    The company also anticipates growth of its aircraft services business, noting it is expanding that operation in places including Miami, London, Singapore and Melbourne, Australia,.

    “We remain confident in our ability to deliver on both our full-year financial guidance and longer-term objectives,” Martel said.

    According to the company, despite the short-term global shock caused by the COVID-19 pandemic, the business aviation industry is expected to grow in the long term, driven by continued wealth creation and introduction of new aircraft models and technologies.

     

  • Abuja shuts infrastructure expansion door against telcos

    Abuja shuts infrastructure expansion door against telcos

    By Lucas Ajanaku

    Over the past seven years, the Federal Capital Development Authority (FCDA) approved  any telecom operator to expand infrastructure by way of building base transceiver stations (BTS) in the Federal Capital Territory (FCT) to make the network in the city and its adjoining communities more resilient.

    This is despite the presence in the city of the Presidency, Ministry of Communications and Digital Economy, the Nigerian Communications Commission (NCC), NationalInformation Technology Development Agency (NITDA), Ministry of Science and Technology and other strategic Federal Government agencies, including the headquarters of the Armed Forces.

    According to sources, the denial of service providers the requisite approval by way of Right of Way (RoW) and others amounted to sabotage considering the security situation of the country and the need to strengthen telecoms infrastructure to facilitate the deployment of such infrastructure to fight the many ‘wars’ confronting the country ranging from kidnap-for-ransom, banditry, Boko Haram insurgency and herders butchery.

    Though the NCC said the number of BTS deployment in the country has risen from 30,000 to 54,460, this figure is still a far cry from the 80,000 BTS required for effective coverage of the country’s huge land mass.

    This huge infrastructure deficit is partly responsible for the service quality issues that have continued to plague the industry.

    Executive Vice Chairman, Nigerian Communications Commission (NCC), Prof. Umar Danbatta said the BTS consist of third generation (3G) and fourth generation (4G) while optic fibre cables (OFCs) expanded from 47,000km to 54,725km in the last five years, resulting in improved broadband/telecoms service delivery in the country.

    He said the BTS, fibre optic cables and other related infrastructure are central to the provision of improved service experience for Nigerians by their respective telecoms service providers adding that the licensed Infrastructure Companies (InfraCos) are also expected to add 38,296km to optic fibre cables when they commence full operations.

    Infrastructure is central if Digital Nigeria, as contained in the Nigerian National Broadband Plan (2020 – 2025), National Digital Economy Policy and Strategy (2020 – 2030) and the Strategic Management Plan (2020 – 2024) will not remain wishful thinking in the limbo of time.

    But stakeholders in the information communications technology (ICT) ecosystem including the former EVC of the NCC who is currently board chairman, MTN Nigeria, Dr Ernest Ndukwe, believe the refusal of FCDA to grant approval for infrastructure expansion constituted a great threat to the ambition of the Federal Government.

    Ndukwe said if the 70 per cent target of the NBP will be achieved, there should be early approval for infrastructure expansion, addressing of the regime of punitive RoW fees, timely spectrum release, empowerment of schools, content creation for broadband and ensuring that the contents created are moved to the internet.

    Director-General, National Information Technology Development Agency (NITDA), Kashifu Abdullahi, stressed the need for pervasive broadband infrastructure deployment, arguing that customers spend $1million every minute on the internet.

    He said aside infrastructure, human capital development, and demand remained the tripod upon which the agency is pursuing the 70 per cent broadband target of the Federal Government.

    “The Commission will continue to put in its best in the discharge of its mandates, especially in facilitating the deployment of broadband, which is central to diversifying the Nigerian economy and national development. Also, it is our belief that the communications industry, under the leadership of the Ministry of Communications and Digital Economy, will experience more quantum leaps and retain its current leadership role in the telecommunications space,” Dambatta said.

    Efforts to speak with the Executive Secretary, Federal Capital Development Authority (FCDA), Umar Jibrin, were futile as he did not pick his call or respond to text messages.

     

  • GEO TAX INSIGHTS: FINANCE ACT, 2019 Emerging Tax Issues

    GEO TAX INSIGHTS: FINANCE ACT, 2019 Emerging Tax Issues

    We shall continue our discussion today on the current/emerging tax issues by focusing on other aspects of International Ethics Standards Board for Accountants (IESBA) to guide corporate and individual taxpayers of the impacts on their businesses

    Part A of the IESBA Code

    establish the:

    • fundamental principles of professional ethics for professional accountants; and
    • provides a conceptual framework that professional accountants shall apply to:

    (a) Identify threats to compliance with the fundamental principles;

    (b) Evaluate the significance of the threats identified; and

    (c) Apply safeguards, when necessary, to eliminate the threats or reduce them to an acceptable level. Safeguards are necessary when the professional accountant determines that the threats are not at a level at which a reasonable and informed third party would be likely to conclude, weighing all the specific facts and circumstances available to the professional accountant at that time, that the compliance with the fundamental principles is not compromised.

    Parts B and C describe how the conceptual framework applies in certain situations.  They provide examples of safeguards that may be appropriate to address threats to compliance with the fundamental principles.  They also describe situations where safeguards are not available to address the threats, and consequently, the circumstance or relationship creating the threats shall be avoided.  Part B applies to professional accountants in public practice while part C applies to professional accountants in business.

    Fundamental Principles

    A professional accountant shall comply with the following fundamental principles.

    (a) Integrity: The principle of integrity imposes an obligation on all professional accountants to be straight forward and honest in all professional and business relationships. Integrity implies fair dealing and thruthfulness.

    (b) Objectivity: This principle imposes an obligation on all professional accountant not to allow bias, conflict of interest or undue influence of others to override professional or business judgements.

    (c) Professional competence and Due Care: The principle of professional competence and due care imposes the following obligations on all professional accountants:

    (i) to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques and act diligently and in accordance with the applicable and professional standards; and

    (ii) to act diligently in accordance with the applicable technical and professional standards when performing professional activities or providing professional services.

    Competent professional services requires the exercise of sound judgment in applying professional knowledge and skill in the performance of such service. Professional competence may be divided into two separate phases:

    (a) attainment of professional competence; and

    (b) maintenance of professional competence.

    Care/diligence encompasses the responsibility to act in accordance with the requirements of an assignment, carefully, thoroughly and timely.

    (d) Confidentiality – This principle imposes an obligation on all professional accountants to refrain from:

    (i) Disclosing outside the firm or employing organisation confidential information acquired as a result of professional and business relationship without proper and specific authority or unless there is a legal or professional right or duty to disclose; and

    (ii) Using confidential information acquired as a result of professional and business relationships to their personal advantage or the advantage of third parties.

    (e) Professional Behaviour – this principle imposes an obligation on all professional accountants to comply with the relevant laws and regulations and avoid any action that discredits the profession.

    Conceptual Framework Approach

    This IESBA code establishes a conceptual framework that requires a professional accountant to identify, evaluate and address threats to compliance with the fundamental principles. The conceptual framework approach assists professional accountants in complying with the ethical requirements of this code and meeting their responsibility to act in the public interest

    When a professional accountant identifies threats to compliance with the fundamental principles and, based on an evaluation of those threats, determines, that they are not at an acceptable level, the professional accountant shall determine whether appropriate safeguards are available and can be applied to eliminate the threats or reduce them to an acceptable level.

    A professional accountant shall evaluate any threats to compliance with the fundamental principles when the professional accountant knows, or could reasonably be expected to know, of circumstances or relationships that may compromise compliance with the fundamental principles.

    A professional accountant shall take qualitative as well as quantitative factors into account when evaluating the significance of a threat. When applying the conceptual framework, a professional accountant may encounter situations in which threats cannot be eliminated or reduced to an acceptable level, either because, the threat is too significant or because appropriate safeguards are not available or cannot be applied. In such situations, the professional accountant shall decline or discontinue the specific professional activity or service involved or, when necessary, resign from the engagement or the employing organisation.

    We shall continue with the other aspects of IESBA in the next publication.