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Airports Upgrade May Cost FG N32b

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  • Airports Upgrade May Cost FG N32b

An aviation sector expert has said that as much as N32billion would be required for upgrade of major Nigerian airports to operate 24 hours.

The expert who is close to the Ministry of Transportation however stated that the government does not have the resources to embark on a comprehensive modernisation of these airports. He explained that the cost is high because many of the airport facilities have become obsolete.

On Wednesday the officials of the Federal Airports Authority of Nigeria (FAAN) confirmed that the airports had been neglected for long and would take a longer time to fix.

A source in the operations department of FAAN said of about 30 airports in the country, only about six operate night flights, which means that a flight in distress can have no airport to land in the nearest distance, a situation, which could result in a major tragedy.

“It is very expensive to provide the equipment that will enable the airports to receive flights in the night. FAAN is losing huge revenue because most of these airports do not operate 24 hours. For us to do night operations we need to put so many things in place. Lighting must e adequate. Night landing depends on the intensity of light. In this modern Nigeria, there is no reason why we should have airports without adequate lighting or airports that cannot operate for 24 hours. This is because any aircraft can be in distress and it won’t have any airport to land,” the source said.

He noted that technology has left Nigerian airports behind because “most of the equipment at the airports have become archaic,” and it is capital intensive to replace most of these obsolete equipment because companies that manufactured them then no more have them or can they manufacture them now because they have become obsolete.”

He remarked: “When you go back to the manufacturers they will tell you the equipment is no more in production. Some of the equipment was produced by more than one company; it will be very difficult to get them to manufacture the equipment again so you are forced to migrate to the new system, which means you will have to do away with everything that you have. Producing old equipment is very expensive.”

Reporters however gathered from the Ministry of Transportation official that government was not contemplating earmarking funds for the modernisation of airport facilities; rather, government is going ahead with the concession programme to bring in the private sector to develop airport infrastructure.

At the 10th anniversary of MMA2 the Chairman of Bi-Courtney Aviation Services Limited (BASL), Dr. Wale Babalakin said that government has other issues to contend with than funding airport infrastructure; therefore, the private sector should be encouraged to invest in infrastructure.

“Let us be frank, government cannot develop airport infrastructure. The number of challenges we have makes infrastructure development something we should give to private sector. We are still at the stage where there are no proper health care. We are still at the stage where power is a challenge, where education is an issue, where so many things require the government’s input. What we need to do is to give it to private sector but the private sector operates when there is rule of law and where there is pursuit of justice,” Babalakin said.

The Minister of State, Aviation, Senator Hadi Sirika had earlier confirmed that government might not be disposed to funding modernisation of airport projects.

The minister has started making strong plans to concession the airports, insisting that it is the only solution to the obsolete airport facilities.

“I think the ultimate solution to all of these is to concession these airports. I have maintained this because I don’t know any other way we can go about it. That is the only way to go because government does not have the resources to continue to invest in these airports. I think that the ultimate end and solution to all of these is the concession of these airports. I have maintained this. It is the only solution, I don’t know any other way we can do it because government no longer have the resources to continue to invest in these airports,” Sirika said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

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MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

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Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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