We looove that you make an effort to open our emails every time you get a notification from us. It gets us excited that you want to learn something new.
The calendar says it’s another Saturday today so we’re guessing you have Saturday-ish plans. Party? Laundry? Netflix and Chill? Faffing? Well done!
But irrespective of what your plans are, it’s always a good time to learn something new, something interesting, something useful.
And that’s why we bring you this bouquet of well-put-together information. Let’s dive in!
Just when we thought Innoson was the only Nigeria based car manufacturer, we found out that
there’s another Nigerian based car manufacturing company in Kano, Nigeria.
Wait, who is Innoson?
Innoson is a Nigerian-based vehicle manufacturing company whose purpose is to wipe out “Tokunbo” (foreign used) automobiles from the African market. You might also know them as the company battling with Guaranty Trust Bank in Court right now.
So who’s the other company in Kano?
Meet National Truck Manufacturers Ltd (NTM). (Try to say the acronym aloud and listen to your brain battle with MTN. Haha!)
NTM is also known as “Kano Cars”. They came into production in the 1970s, worked for a bit, then shut down in 1987 due to economic issues, but returned again in 2002 but as a private company. What a bumpy ride.
Is NTM a threat to Innoson?
For now, they are not. Maybe later on, though. NTM focuses on the production of trucks only, while Innoson produces SUVs, buses, vans and trucks.
Why does this matter?
It was reported in 2010 that NTM had planned to produce over 60,000 trucks in Nigeria.
It’s 2019, a few years after. While any increase in sales experienced would be nothing compared to the millions of sales our foreign competitors do, it’s probably good news that we have another indigenous vehicle manufacturing company. With the right support from the Government, these companies would become the ideal providers of vehicles for Nigerians; and maybe put an end to our famed vehicle importation. Remember, Nigerians spent $526 million importing used vehicles (“tokunbo”) last year.
It’s a dream come true! Finally, the world got to see Saudi’s Aramco’s—a Saudi Arabian national petroleum and natural gas company—financial statement for the first time on the 1st of April, 2019. Just in case you’re thinking what we were thinking, this was NOT an April Fool’s prank.
Why did it take so long?
Aramco didn’t need to show anyone what it made because it is a private company. But as you know, there comes a time when every business needs to expand and diversify its source of income. So, because Aramco needed to borrow $69bn to acquire 70% of SABIC —a petrochemical company— it had to open its books for potential investors to see.
Was it worth the wait?
This depends on what people expected to see. We at Clooout think it was worth the wait though. It made $111bn in profit last year; that’s more than the five oil majors—Royal Dutch Shell, ExxonMobil, Chevron, Total and bp— combined. So much money😭
Fair enough for a company that produces about 10% of the world’s crude oil. (Whoosh!)
Something Light from NNPC
If, for some reason, you’re wondering how NNPC is doing. The answer is ‘Fine’. It reported a trading surplus(profit) of ₦12.13 (US$ 336.9m) billion in December 2018. So yay NNPC!
Remember the story about Visionscape, the waste management company failing to pay back on its N4.5 bn loan?
You don’t remember?
Arrgh, alright! Here’s a quick recap.
Visionscape borrowed N4.5 bn from investors with the backing of the Lagos state government to repay the investors back if they are unable to pay them. But things went sour once they were bounced as the only waste management company in Lagos, and the government opted out of the deal to back them.
Credit rating agency, Fitch ratings, said “Lagos would retain it’s positive (B+) economic ratings despite the missed contracted services payment by Visionscape Sanitation Solutions”.
Who is Fitch ratings?
Fitch ratings is an international credit rating agency. Investors use the company’s ratings as a guide as to which investments will not default and subsequently yield a solid return.
Come again ahghen?
Okay. Look at it this way, What’s the difference between a random stranger asking you for a loan and a stranger who was highly recommended by someone you trust asking for a loan?
You might say you see no difference because you have no money to give either ways (🌚), but we’d say the difference is the ‘trust’. Credit rating agencies are the people we trust in the business world as they do all the work in vetting a company, state or country and rate them on how creditworthy they are. Subsequently, they announce their rating to the public for them to decide whether or not to invest. Many companies get rated as often as every quarter after releasing quarterly earning information.
So, If Lagos is rated B+, what is Nigeria rated?
Why wait till now?
Mastercard was part of a group of investors that invested $10m in Flutterwave—a payment processing company—in October 2018. Maybe this is part of a series of strategic alliances, or maybe they just want to cash out when Jumia lists on the New York exchange.
What’s money called in Hausa?
It’s Kudi. Kudi is also the name of a company that started in 2016 with the mission to enable underbanked and unbanked Nigerians to access basic financial services. It recently raised US$5 million in funding.
Why does this matter?
Source: Global Findex Database
Nigeria today has 21 commercial banks, 942 microfinance banks, and numerous financial technology (fintech) yet only 40% of Nigerians are banked – have a bank account.
Take a deep breath, close your eyes, now think about how
difficult different your life would be without a bank account.
Yeah, you get the picture now.
It’s another week and the numbers are still coming in. Last week we looked at a couple of companies, this week we’re looking at more banks and other companies who recently released their financial statement for the year 2018. Let’s look at how they performed.
As usual, we’d focus on Profit after Tax (PAT); how profitable the company is and the growth rate from the previous year.
Unity Bank made N1.27 billion (US$35.3m), up by ~700% from 2017
Fidelity Bank made N22.9 billion (US$636.1m) up by 29% from 2017
Oando made N28.8 billion (US$800m) up by 46% from 2017
Dangote Sugar made N21.9 billion (US$608.3m) down by 44.8% from 2017
Medview lost N10.3 billion (US$286.1m) down by 925% from 2017. Yes that’s a huge loss 💔
Who is happy about at all of these?
The tax office 😊
The Federal Inland Revenue Service (FIRS) is expecting the 14 commercial banks that are listed on the Nigerian Stock Exchange (NSE), to pay an estimated sum of N103 billion in taxes for the financial year ended December 2018.
Governor Nyesom Wike of the People Democratic Party emerged as the winner of March 9 governorship in Rivers state.
How did he win?
By a wide margin. We’re talking 886,264 to 175,859, Out of 21 local governments, Wike won 19 and Awara Biokpomabo was only able to win two LGAs.
Any irregularities or Shortcomings?
Of course, This is Nigeria. No election was held in two local governments, and no results were reported in Gokana LGA. A total of 249,324 votes were cancelled.
Was it free and fair?
INEC officers say it was a very transparent exercise, we’d keep our thoughts to ourselves on this one.
The UK is currently due to leave the EU on 12 April and yet, no withdrawal deal has been approved.
However, Theresa May has written to European Council President Donald Tusk to request an extension to 30 June. But if they agree to a deal in time, the UK should be able to leave before European parliamentary elections on 23 May.
Do you think the extension period is long enough for the Uk to finally agree on something it has 2 years to prepare for?
So we decided to skip this week, do you miss this section?
Marvel: Pssst! Hey, have you gotten your tickets for Avengers End game yet?
Probably not, Well advanced tickets went out this week in the US and everyone is going nuts about them. At this rate, it’s expected that sales would be around $200 million to $250 million over the opening weekend – April 26-28.
World Bank appoints a new president, David Malpass as President of the World Bank Group for a five-year term, beginning on Tuesday, April 9.
Zoom a video-conferencing software company that started in 2011 is set to file for an IPO – raise funds from the stock market, but unlike most tech companies at this stage, Zoom is profitable. It made a $7.6m profit last year and saw it’s revenue increase by 118% from the prior year.
Chief Justice of Nigeria Retires: It’s safe to say it is finally over now as Walter Onnoghen, who was suspended from office on January 25 by the Federal Government for failing to declare part of his assets, voluntarily resigned this week.
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