As we say farewell to the month of May, we’d also do the same to Theresa May who resigned as the prime minister of UK yesterday in the best interest of the country as she believes she can’t deliver Brexit.
Having said our farewell, we welcome you to something new. No, it’s not the announcement of a new prime minister, it’s the fact that you can now read our newsletters directly on our site, as well as share them with your loved or not so loved ones. We’re so excited! 🎉
The Federal Government plans to demolish Murtala Muhammed International Airport and rebuild it. As it outlived usefulness.
According to the investigations conducted by construction company Julius Berger Nigeria Plc, there is an overhaul due to the increase of airlines over the years, and the 40-year-old airport needs expansion.
A Brief History:
Originally, the airport was known as the Lagos International Terminal before it was renamed after the former President, Murtala Muhammed in the mid-1970s. It was modelled after the Amsterdam Airport Schiphol. But due to poor management, the 40-year airport has sincerely outlived its usefulness. A facelift is long overdue.
The Cost of Reconstruction
The reconstruction is expected to cost N14 billion if MMIA is to have a proper facelift. The reconstruction exercise is going to be in two phases in which the airlines would be moved to a new terminal. However, the demolition of the airport won’t commence until the new international terminal being constructed with a loan from the Chinese Import-Export Bank is completed.
Why does this matter?
The remodelling exercise of Lagos Airport is part of the government’s plan to develop “aerotropolis.” This means the government wants to enable business and social development to thrive. In the meantime, let’s watch and see how it all works out.
The National Bureau of Statistics in its Gross Domestic Product (GDP) Report for the first quarter of 2019, said Nigeria’s GDP grew by 2.01% in the first quarter, compared to 2.38% in the fourth quarter of 2018.
What is GDP?
It is one of the primary indicators used to gauge the health of a country’s economy, It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy.
Did anyone see this coming?
Yes, The International Monetary Fund had, in its World Economic Outlook Update released in January, revised down Nigeria’s Gross Domestic Product projection for 2019 to two per cent, from the 2.3 per cent projected in October 2018.
Any chance things would change soon?
Depends on what ‘soon’ means to you. Very few people expect economic policy to change soon under the tenure of president Muhammadu Buhari and the recently reappointed CBN Governor.
Big Picture: Sometime in 2017, the Nigerian government launched its “Economic Recovery and Growth Plan” (ERGP) with the hopes to turn the economic state of Nigeria around. However, the latest data from Nigeria’s statistics bureau (NBS) shows the plan isn’t working.
What’s going on?
MTN went public last week and as expected, the crowd went wild for a while. But afterwards, they got frustrated. Stockbrokers and investors are frustrated as they can’t seem to get their hands on MTN stocks.
What MTN did was list their shares, not an IPO.
An IPO is an Initial Public Offering where a company decides to raise capital by offering its shares to the public. You can buy new shares.
A listing, on the other hand, is a company listing its shares on the stock exchange allowing its shareholders to sell shares directly to the public. You can only buy the shareholder’s shares.
In the case of MTN, (listing) shares will only be available if current shareholders wish to sell.
The Liquefied Petroleum Gas (LPG) has made a policy on Tuesday to ban consumers from owning gas cylinders. The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the policy won’t allow consumers to own gas cylinders rather they would be owned by the dealers and distributors.
Why is this policy necessary?
This is actually a strategy by the LPG in compliance to the cooking gas safety regulations. The aim of the policy is to be able to discern and discover bad cylinders which need recertification, remove them from circulation and eliminate risks.
What does this mean for roadside retailers?
Uhm, the policy would lead to a clampdown of roadside LPG sellers, converting their outlets to micro distribution centres. It would leave many roadside retailers with no jobs.
Question: Does the benefit of this policy outweigh the cost or it’s vice versa?
India: After 35 days, the world’s largest election has come to an end with Indian Prime Minister Narendra Modi securing another five-year term after winning a landslide general election victory.
What does it take to pull this kind of election: Asides from free booze and cash for all,
“We had 100 high-security zones that are very dangerous. In some of them, over 100 security personnel accompanied just 20 polling officials to secure their path through the forest…My men haven’t slept for days.” —Chhattisgarh police chief Durgesh Kumar Awasthi.
Austria: Vice-Chancellor Heinz-Christian Strache, resigned on Saturday after a video surfaced showing him appearing to offer government contracts to a woman who claimed to be a Russian investor in exchange for supporting his party, the Freedom Party.
While he denied doing “anything against the law,”, he said “It was a typical alcohol-infused macho behaviour…With this, I have hurt the most important person in my life, which is my wife”
What’s next: A quick election is expected to happen in September.
Australia: Scott Morrison (ScoMo), a former marketing man who approved Tourism Australia’s infamous “So where the bloody hell are you?” campaign, has retained his seat as Prime Minister.
What should the people expect: New faces and Tax Cuts
How do you get on the fortune 500 list?
It’s simple, make more money(sales) than other companies.
What does this year’s list look like?
Three things to note.
Amazon might be king of online retail but Walmart is still king of retail generally, Currently, 90% of retail purchase is still done in brick and mortar stores.
Can anyone meet up with Walmart? With Amazon and Apple growing at 30% and 15% annually respectively, it’s might only be a matter of time if this growth rate can be sustained.
By the way, did you sigh because you don’t know who AmerisourceBergen is? Well, they are a pharmaceutical distributor, they might not be popular but they are impactful.
Most profitable ones.
Three things to note.
For the past 5 years, Apple has been the most profitable making a combined profit of $246 billion. But as we look into the future, we can’t help but wonder if Apple can sustain this pace as it transits from being Hardware focused model to a service-based model. We also wonder how the trade war between China and the US would affect Apple’s performance as it’s now embarrassing to use the iPhone in China.
Facebook grew their profit by an impressive margin of 39% last year despite all the controversy, would this margin drop by next year?
Microsoft gets a worthy inclusion because its cloud business is growing really fast and by next year it should be in the top 10.
Three things to note
Walmart’s employees can make up the population of the top 20 least populated countries in the world. While 2.2 million looks like a lot, note that Walmart shed off 100,000 jobs last year during a restructure.
Amazon seems bloated, but if it sticks to its diet plan by continuing to automate its workforce (Amazon Go) it would continue to trim down its size.
When you compare the top 10 biggest employers with the top 10 most profitable companies, there’s no correlation. However, 5 of the 10 biggest employers, are the most profitable in their industries (IBM, UPS, Berkshire Hathaway, Walmart, Home Depot).
What is going on?
Well, Google has banned Huawei (Who-Wa-Way) from its Android services in compliance with the recent directive prohibiting U.S companies from using telecom equipment and services that are foreign-owned or controlled without obtaining a license.
According to Reuters on Sunday, Google suspended Huawei from its services which include hardware, software and technical except for those publicly available via open source licensing.
What does this mean to Huawei phone users?
Huawei phones run on Android – Google’s Operating System (OS). So the ban, actually means Huawei phone owners wouldn’t have access to the Google Play store; the android app store and other Google services. Although the previous existing Huawei phones would still have access to them, the ban means anything from a recent release like the Huawei Mate 30 range wouldn’t have access to the crucial android services including Google maps, Google play store and the Gmail app.
How will this ban hurt Huawei?
In China, this ban wouldn’t have much effect on Huawei’s market because, before the ban, Google’s services were blocked there anyways. But uhm, at a global level, Huawei is the second biggest smartphone marker after Samsung, having its roots in China, Europe, and Africa. This might force Huawei to come up with its own operating system or Google-free Android. This would be tough to sell to consumers who are used to Gmail and Youtube on their phones. It might is at risk of losing it’s European and African market share.
Who else is this ban hurting?
Apple; as there’s currently a movement to boycott Apple products in China.
What people in China are saying:
“Switch to Huawei! Hate those hypocrites,”
“It’s kind of embarrassing to pull an iPhone out of your pocket nowadays when all the company executives use Huawei”
A tweet from a Chinese Ambassador bashing Trump and Apple. The irony is quite obvious.
Imagine you’re the outgoing governor of your state; like most people you want to leave a mark, something the people would remember you for. You could complete a project or implement policy but if you’re Rochas Okorocha — the outgoing governor of Imo state and an unconfirmed senator — you’d rather erect another statue.
What we enjoyed reading
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