Connect with us

Finance

FG Plans N493.4bn Revenue from National Assets’ Sale

Published

on

Buhari

FG Plans N493.4bn Revenue from National Assets’ Sale

The Federal Government plans to earn a total of N493.4bn from the sale or concession of about 36 of its assets across the country.

Some the assets up for sale or concession include the country’s refineries, the International Conference Centre in Abuja, Yola Electricity Distribution Company, Zungeru Hydro Power, Tafawa Belewa Square, among others.

The assets and the projected amount expected from their sale or concession were contained in a document that was put together by the Bureau of Public Enterprises.

The document showed that the properties were classified under energy assets, industries and communication department, as well as development institutions and natural resources.

Others include infrastructure and public private partnership and post transaction management department.

The Federal Government had made it clear that it would sell or give out in concession some of its assets in order to raise funds to finance the 2021 budget.

In January 2021, the Minister of Finance, Budget and National, Zainab Ahmed, told lawmakers that the Federal Government would sell selected properties to fund this year’s budget.

Aside from selling some of its assets, she said the Federal Government would also engage in domestic and foreign borrowings to fund the 2021 budget.

Further analysis of the BPE document, which was submitted to the National Assembly, showed that the government would earn the highest sum of N484.476bn from the energy department.

Projected earnings from industries and communication department, development institutions and natural resources were N9.239bn and N51.112m respectively.

No revenue was projected from infrastructure and public private partnership, rather a total cost of N626.2m would be spent on this department.

For the post transaction management department of the BPE, the government’s projection was that it would earn N212.458m.

It was, however, observed that while the country’s four refineries were grouped under energy department and classified as core investor sale, the amount to be earned from the facilities was not stated in the document.

Similarly, the Transmission Company of Nigeria was grouped under energy department and would be under concession, although no amount was stated as the expected earning from the TCN.

The Lagos International Trade Fair Complex, Tafawa Balewa Square, River Basin Development Authorities were grouped as assets for partial commercialisation and concession.

Also, the Abuja Environmental Protection Board, Abuja, the ICC, Nigerian Film Corporation, among others would be commercialised or given to concessionaires.

There had been diverse views on the proposed sale of national assets by the Federal Government.

The Socio-Economic Rights and Accountability Project, for instance, recently opposed the move.

SERAP recently reached out to the National Assembly, urging the lawmakers to halt the move by the Federal Government to sell the country’s assets, as it argued that this could constitute a constitutional breach.

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

Published

on

MTN 1

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.

Continue Reading

Finance

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

Published

on

Nestle

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.

Continue Reading

Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

Published

on

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

Continue Reading

Trending