BusinessDay 11 Dec 2017

4 BUSINESS DAY
C002D5556
Monday 11 December 2017
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14.23 14.03
Apapa: NECA, MAN, others warn of collapse of more businesses
... tasks FG on ease of doing business
JOSHUA BASSSEY
Members of the
Organised Private
Sector
(OPS) comprising
manufacturers,
chambers of commerce and
industry, employers of labour,
among others have hinted of
imminent collapse of more businesses
in Apapa as the gridlock
continues unabated.
The consequence of this on
the national economy, the OPS
warned, would be more job
losses and further descent of the
largely distressed population into
poverty.
Members of the OPS, who
spoke with BusinessDay in Lagos,
said in the last eight months,
manufacturers had been finding
it difficult to evacuate imported
raw materials for their production
lines, from the ports, just as
they decried a sharp increase in
Banks earn 64 percent...
Continued from page 1
the period.
The NSE - 30 which tracks
the top 30 listed firms on the
Nigerian Stock Exchange (NSE)
in terms of market capitalization
and liquidity accounts for
94 percent of the stock markets
N13.54 trillion total market capitalization.
“Most players in the industry
especially foreign investors
consider liquidity as they look at
the average volumes,” said Ayodeji
Ebo, managing director and
chief executive officer of Afrivest
Securities Limited.
“The activities of the market
have always been skewed towards
the banking sector. They
have a steady earnings and dividend
policy,” said Ebo.
Lenders are the best performer
on the exchange this year
as the banking index has gained
71.06 percent year to date, outperforming
the NSE All Share
Index (ASI), performance of 46
percent.
Lenders, especially the large
ones saw a significant growth in
third quarter earnings, underpinned
by improved yields on
the loan book and high yields
from money market instruments
as interest Income.
For now, analysts still see
banks driving a big portion of the
overall earnings growth.
The NSE-30 firms as a whole
transporting a container from
the ports to their factories, from
N100, 000 to between N350, 000
and N400, 000 due to port and
road congestions. The national
economy is said to be losing
about N200 billion daily to the
crisis in Apapa.
According to the OPS, additional
costs of transacting business
within Apapa, is already
heavily impacting their bottomline,
and this could lead to a
further cut in staff of member
companies. The OPS comprises
five key players in the Nigerian
economy. These include Nigeria
Employers Consultative Association
(NECA), Manufacturers
Association of Nigeria (MAN), Nigerian
Association of Chambers
of Commerce, Industry, Mines &
Agriculture (NACCIMA), National
Association of Small and Medium
Scale Enterprises (NASME)
and National Association of Small
Scale Industries (NASSI). The five
saw earnings surge by 42 percent
to N818.43 billion in the Q3, 2017
period from N575.39 billion in
Q3, 2016, based on data compiled
by BusinessDay.
Industrial goods firms were
the second biggest profit generator
in the period with Dangote
Cement and Lafarge Africa
combined profits of N194 billion
equivalent to 23.7 percent of
NSE-30 profits.
This was followed by consumer
goods firms (Dangote Sugar,
7UP, Flour Mills, Guinness, International
Breweries, Nigerian
Breweries, Nestle, Unilever and
PZ), responsible for 8.1 percent
of NSE-30 profits.
Oil and gas firms (Conoil,
Forte Oil, Mobil, Oando, Seplat
business associations have over
15,000 member companies cutting
across various sectors of the
nation’s economy.
Segun Oshinowo, the Director
General of NECA, told Business-
Day that quite a lot of businesses
have closed shop and it was high
time the Federal Government adopted
a multi-prong approach to
arresting the situation in Apapa.
He added that government
needed to speed action not only
on the repair of collapsed road
infrastructure in Apapa, but seek
a holistic approach to enhancing
the ease of doing business in
the area.
Speaking also, Segun Ajayi-
Kadiri, the Director General of
MAN, said the OPS was deeply
concerned about the gridlocks
and the dilapidated road to the
ports. These, he said have continued
to pose a challenge to businesses
with grave implications for
the economy.
and Total), had 3 percent of profits
in the index for the period.
Energy companies have
floundered in Nigeria as attacks
on oil pipelines in the Niger
Delta region combined with lack
of reform in the downstream
space is squeezing cash flows.
Also, corporate governance
issue relating to oil and gas giant
Oando Nigeria Plc has soured
investors’ appetite for the company’s
shares.
The SEC has ordered a forensic
audit of the firm’s affair
over alleged ‘insider dealings’
and ‘manipulation of the company’s
shareholding structure’
in breach of the Investments &
Securities Act 2007 and the SEC
Code of Corporate Governance
“The challenges have paralysed
business activities, engendered
loss of man-power, and
revenues to government. Manufacturing
companies can no longer
meet up with set production
targets. This by all standards is
not business-friendly. It takes five
to eight weeks for OPS member
companies to take delivery of
their cargo and their vital raw
materials. We affirm that this is
not good for business, it hinders
Stanbic IBTC retains AAA national Fitch...
Continued from page 1
SIBTCH’s main strengths is
its diversified earnings. Noninterest
income generation is
high and underpinned by fees and
commissions and trading income.
Loan impairment charges are high,
but manageable in the context
of strong earnings. Costs are well
controlled. As a result, profitability
metrics are healthy,” Fitch added.
In its report, the rating agency
also reviewed the capital adequacy
of Stanbic IBTC in compliance with
L -R: Ripudaman
Sharma, corporate
sales head, Multipro
Consumer Products
Limited; Rosette Agbor,
brand manager, Arla
DANO; Bartholomew
Brai, president, Nutrition
Society of Nigeria;
Mads Burmester, managing
director, TG Arla
Nigeria, and Ifunaya
Obiakor, marketing
manager, TG Arla Nigeria,
at the launch of
DANO flavoured milk
powder in Lagos.
for Public Companies.
“If not for the technical suspension
on Oando’s shares, the
shares would have been further
beaten down,” said an analyst
who doesn’t want his name
mentioned.
Seplat Petroleum Development
Corporation recorded a
loss of N1.62 billion as at September
2017 while Total Nigeria,
Mobil Nigeria and Conoil
recorded 48.79 percent, 20.02
percent and 24.49 percent drop
in net income to N5.95 billion,
N4.59 billion and N1.35 billion
in the period under review.
The NSE Oil and Gas Index
has returned -7.01 percent this
year, underperforming the wider
NSE All Share Index (ASI).
profitability,” Ajayi-Kadiri said.
Regina Odiah, a member of
MAN who corroborated Ajayi-
Kadiri’s statement, lamented that
about 60 percent of manufacturing
firms have relocated from Apapa.
“The Federal Government
wants manufacturing companies
to key into backward integration
policy but it fails to provide a conducive
environment and good
infrastructural development,”
Odiah said.
regulations and concluded that
it was very strong and compare
favourably against peers. “Fitch
expects these levels to be maintained.”
The liquidity position of
Stanbic IBTC was reviewed and its
ability to meet foreign currency obligations
as they fall due. The Group
was certified as having “good funding
profile and very good liquidity”
as customer deposits grew strongly
by 13 percent in the first half of
2017 with the bank rolling out new
delivery channels. “Balance sheet
liquidity is underpinned by large
volumes of government securities.
Additionally, SIBTCH’s loans/
deposits ratio at 62% is one of the
lowest among peers.”
Chief Executive of Stanbic IBTC
Holdings PLC, Mr. Yinka Sanni,
said the ratings are a clear testament
of the financial institution’s
strength, strong leadership and
the unyielding support of its parent
company. He reiterated Stanbic
IBTC’s commitment to the Nigerian
market and pledged it will
continue to provide support to all
sectors of the economy in order
to keep moving individuals and
businesses forward. “We are elated
by this validation of our strength.
This will help to boost our drive to
build a strong end-to-end financial
solutions institution that offers
bespoke products and services to
our clientele. Our commitment to
supporting the attainment of Nigeria’s
developmental aspirations
remains resolute,” Sanni said.
Stanbic IBTC Holdings PLC
is a full service financial services
group with a clear focus on three
main business pillars - Corporate
and Investment Banking, Personal
and Business Banking and Wealth
Management. Stanbic IBTC belongs
to the Standard Bank Group,
the largest African financial institution
by assets. It is rooted in Africa
with strategic representation in
20 countries on the African continent.
Standard Bank is focused on
building first-class, on-the-ground
financial services institutions in
chosen countries in Africa; and
connecting selected emerging
markets to Africa by applying sector
expertise, particularly in natural resources,
power and infrastructure.