Welcome to a new month, we decided to start this month on an early note. If you’re reading this on your phone, how much do you think is the total amount Nigerians have spent on Airtime if Nigerians spent N359 billion on only MTN airtime in the first half of 2019?

Let’s dive into the news 😊


A land flowing with Milk and…

The Story

There are rumours that The Central Bank of Nigeria (CBN) has banned the importation of milk. 


Not quite so as CBN says it doesn’t have the power to ban the importation of milk, however, when it observed that about  $1.2b to $1.5b is spent annually on the importation of milk, all it did was tell operators in the industry that milk and some other dairy products would be restricted from accessing foreign exchange, if they don’t invest in ranches.

Why it matters?

This act could increase the price of milk in the country because the importers of milk would be forced to purchase forex at an alternative expensive rate(Black Market).

This could spur the development of the local dairy industry. This move was made after the success of milk importers who took CBN’s low-interest loans and began local milk production as opposed to just importing.

Honeymoon is over

The Story

The five-year Value-Added Tax (VAT) exemption on Stock Exchange transactions which was put in place by former minister of finance Dr Ngozi OkonjoIweala, has come to an end. 

What it means

Stock exchange transactions were exempt from paying Value added tax ie. Tax on Goods and Service in the bid to encourage participation. However, The reinstatement of VAT means investors would have an additional transaction cost of about N2.5 billion.

Why it matters?

This move might dampen investors interest in Nigeria’s already fragile market.

Highest paid CEOs in Nigeria

Before you read can you guess the top 3 companies? 




Now let’s see if you’re correct 

Nairametrics combed through the 2018 financial reports of listed companies to come up with a list of the highest-paid CEOs in Nigeria, and they are…

  1. Freedy Moolman, MTN – N571million
  2. Wale Tinubu, Oando – N568m
  3. Austin Avuru, Seplat Petroleum N483m
  4. Baker Magunda, Guinness Nigeria – N461m
  5. Joseph Makoju, Dangote Cement – N429m
  6. Segun Agbaje, Guarantee Trust Bank – N384m
  7. Yaw Nsarkoh, Unilever Nigeria – N330m
  8. Lars Richter, Julius Berger – N319m
  9. Michael Purcheros, Lafarge – N312m
  10. Mauricio Alarcon Nestle – N210m

Zoom out: CEOs made 287 times more money last year than their workers did. In the wake of an era where companies have finally started reporting CEO-worker pay ratios, It has become fashionable to bash big business for how unfair the pay gap is but is this the appropriate response?


Brexit, Boris Johnson and the sliding pound 

The Story

The British pound has been dropping since the ascension of Boris Johnson to the office of the Prime Minister.

What this means

The currency has lost nearly 3 per cent of its value against both the American dollar and the euro since Mr Johnson took over last week.

Why it matters

Per the New York Times, In theory, the weaker pound should bolster British exports by making them relatively cheaper than those produced by competitors in Europe, North America and Asia. But given that Britain imports more than it exports, the net effect is negative.

Zoom out: The slide is expected to continue, perhaps right up until Oct. 31, the day that Britain is scheduled to depart the European bloc.

Google and Amazon Q2 Performance 


Google’s second-quarter financial report was quite outstanding as it surpassed WallStreet’s expectation of $30.8 billion revenue by making a revenue of $31.7 billion,  Google also plans to buy back it’s class C stock worth $25 billion. 

This looks fantastic but there’s one issue with this report. It’s all muddled up.

It’s difficult to point to what is the driver of this stellar performance as Google has chosen to not break down its revenue and costs; missing in google’s report is a true picture of the following:

Mobile revenue and traffic acquisition costs

YouTube revenue and costs

Google Cloud revenue and costs

Good News: As long Google keep doing well, nobody might ask questions about this.


On the other hand, Amazon missed Wallstreet’s estimate as its profitability was hit particularly by surging shipping costs. The company spent heavily on making one-day shipping the standard for its Prime members. Also, Amazon web services revenue growth appears to be slowing down.

What does it matter

While Amazon’s investment in one-day shipping both deepens its logistics moat and increases its competitiveness for additional consumer spending. On the other hand, one-day shipping is really hard and really expensive.

And that’s all for this week! Haven’t subscribed to our newsletter? Subscribe here.  We’d love your feedback on this newsletter. Please email thoughts and suggestions.