Tuesday, August 11African Business News
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Month: July 2020

SON secures conviction of businessmen over engine oil adulteration

SON secures conviction of businessmen over engine oil adulteration

Business
The Federal High Court in Lagos has convicted two men, Uche Johnson and Kingsley Meteke, for producing and distributing substandard engine oil. Justice Oluremi Oguntoyibo convicted them after they pleaded guilty to the offence. She sentenced them to two years imprisonment each after they admitted to having adulterated 128 drums and 9.45 litres of engine oil. They were charged with four counts of production, possession, dealing in and distribution of substandard engine oil. SON said the defendants indulged in the production of engine oil which did not meet mandatory industrial standards. The defendants claimed that the products were good for public consumption and for optimum engine performance, which prosecutors said were false. The products were said to have failed to compl...
Equities record largest fall in three weeks, as investors lose N70b

Equities record largest fall in three weeks, as investors lose N70b

Capital Market
Weak sentiments and selloffs across bellwether stocks, especially MTN Nigeria, Guaranty Trust Bank, and Seplat led to the market’s largest fall in three weeks, as investors fortunes slumped further by N70 billion. At the close of trading yesterday, the All-Share Index (ASI) decreased by 133.45 absolute points or 0.54 per cent to close at 24,650.16 points. Similarly, investors lost N70 billion as market capitalisation fell to N12.859 trillion. The downturn was impacted by losses recorded in large and medium value stocks, including Seplat Petroleum Development Company, Total Nigeria, MTN Nigeria Communications (MTNN), Julius Berger, and Guaranty Trust Bank. Analysts at Afrinvest Limited predicted that the performance of the market this week would be majorly dictated ...
International Breweries Plc releases 2020 Q2 results

International Breweries Plc releases 2020 Q2 results

Business
International Breweries Plc (IB Plc), a proud part of the AB InBev family, the world’s largest brewer, has announced its unaudited results for its half-year period ended June 30th 2020. The result, which was just released to the Nigerian Stock Exchange (NSE), reflected the impact of the ongoing Covid-19 pandemic on Nigeria. As part of the company’s proactive measures, the cost of sales maintained a downward trend within the quarter. This was coupled with the stringent cost controls implemented at the beginning of the year and strengthening its credit modalities to better position the company for a return to competitive growth. While the quarter may not have ended robust enough, the results show that the Company made significant progress in some other critical areas as enumerated a...
Airline operator, pilots spat over pay cut

Airline operator, pilots spat over pay cut

Aviation
Pilots in the operations of Air Peace airlines and their management have had a spat over pay cuts that is not unconnected with the dwindling fortunes of local airlines. The Guardian learnt the pilots recently protested against a cut in salary and downed tools, forcing the management to lash out at the “insensitive” workers, amid the chairman’s threat to shut down operations. Recall that local airlines three weeks ago resumed commercial flight operations, although with low patronage and an attendant load factor of about 30 per cent. The development has caused airlines to struggle, unable to recoup the cost of operations among other obligations, which have forced some of the airlines, including Air Peace, to review the salary of pilots and crew. Apparently displeased by the pilot...
Forex, reputation issues bane of capital inflow into Nigerian businesses

Forex, reputation issues bane of capital inflow into Nigerian businesses

Business
International investors and stakeholders have attributed businesses’ inability to attract foreign capital needed for growth to Nigeria’s image problem, and challenges in repatriating investments. According to them, while Nigeria should be at the top of the list for investments in Africa, governance issues remain an impediment, making the country look problematic compared to other smaller countries. Of the $5.85billion received in the first quarter (Q1) of 2020, portfolio investment accounted for 73.61% ($4.31billion) of the total capital importation recorded by the National Bureau of Statistics (NBS). Speaking at a webinar on, “Access to international capital and funding solutions for Nigerian businesses”, organised by the Lagos Chamber of Commerce and Industry (LCCI), Monday, Key...
New trade restrictions worth $423.1 billion, says WTO

New trade restrictions worth $423.1 billion, says WTO

Business
The World Trade Organisation (WTO), has declared that new import restrictions covering traded merchandise between October 2019 and May 2020, was worth about $423.1 billion. WTO, in a new report, noted that 56 new trade-restrictive measures not related to the coronavirus pandemic were implemented between mid-October 2019 and mid-May 2020 – mainly tariff increases, import bans, exports duties and stricter exports customs procedures. It stated that: “The new import restrictions covered traded merchandise worth an estimated $423.1 billion, the third-highest value since October 2012.” WTO estimates indicate that the cumulative trade coverage of import-restrictive measures implemented since 2009, and still in force, amounts to $1.7 trillion or 8.7 per cent of world imports. This figure ...
AfDB approves $27 million to boost AU’s COVID-19 response initiative

AfDB approves $27 million to boost AU’s COVID-19 response initiative

Business
The African Development Bank (AfDB), has approved about $27.4 million in grants to boost the African Union’s (AU) efforts to mobilize a continental response to curb the COVID-19 pandemic. The approval came on the heels of a meeting of the extended Bureau of the AU Conference of Heads of State and Government with Africa’s private sector, which was chaired by the South Africa President, and current Chairperson, AU, Cyril Ramaphosa. The AU Bureau meeting called for contributions to the African Union’s COVID-19 Response Fund, established by the Chairperson, AU Commission, Moussa Faki Mahamat, in March this year. Speaking during the Board’s approval of the operation, AfDB President, Akinwumi Adesina, said the financing package reaffirms the Bank’s commitment to a coordi...
NCC targets faster resolution of consumer complaints

NCC targets faster resolution of consumer complaints

Business
The Nigerian Communications Commission (NCC), has begun the implementation of the revised framework stipulating the processes for resolving consumer complaints arising from service delivery by telecoms operators. The Service Level Agreements (SLAs) document, which was reviewed last year by NCC, is meant to achieve greater effectiveness in the sector, and to strengthen the protection of telecoms consumers and other stakeholders. According to the NCC Director of Public Affairs, Dr. Ikechukwu Adinde, the implementation of the revised framework, tagged: ‘Complaints Categories and Service Level Agreements (CC/SLA),’ would commence immediately. The framework review, which was done in collaboration with operators and other stakeholders, is to ensure prompt resolution of consumers’ compla...
Stakeholders appraise Federal Government’s mining initiative

Stakeholders appraise Federal Government’s mining initiative

Economy
Opinions are divided about the intention behind the Federal Government’s decision to standardise artisanal and small-scale gold mining in the North, as well as in Osun State, with the majority tilting to the government ceding resource control of gold to the states. The Presidential Artisanal Gold Mining Development Initiative (PAGMI), is designed to ensure safer and more efficient mining and processing technologies across artisanal mining locations across Nigeria, starting with Kebbi and Osun as the pilot states with intervention in Kaduna, Zamfara, and Niger states to commence immediately after. Using a Centralized Offtake and Supply System, supported by a Decentralized Aggregation and Production Network, PAGMI will buy all the gold produced by artisanal and small-scale miners and a...
Gold hits new high; equities struggle on virus fears

Gold hits new high; equities struggle on virus fears

Business
Gold chalked up another record peak on Tuesday before pulling lower as the dollar clawed back earlier losses, while equity markets struggled with mounting coronavirus fears, dealers said.With worrying new spikes in infections in Asia and Europe — on top of the already-high new US cases — forcing governments to impose strict COVID-19 containment measures, the global economic outlook remains clouded, putting the brakes on a months-long stocks rally. The virus uncertainty, combined with China-US tensions, has sent gold soaring nearly 30 percent this year — and on Tuesday it struck another record pinnacle at $1,981.27 per ounce in Asian trade. That smashed the previous day’s peak but it later pared the advance to sit lower for the day. But observers say $2,000 coul...