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West African Consumer Sentiment Reflects Global Uncertainty

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Ghanaian Consumer Confidence Declines by 15 Points

Lagos, 7 July 2020 – Against the backdrop of the unprecedented COVID-19 pandemic, West African consumer sentiment has experienced a sharp drop in the Nielsen Consumer Confidence Index (CCI) for Quarter 2, 2020. Ghana’s figures show a substantial decrease of 15 points to 104, while Nigeria’s CCI has decreased by 14 points to 108.

Looking at Ghana’s performance, Yannick Nkembe, Market Lead for Nielsen West Africa Expanded Market, comments; “The latest consumer sentiments reflect the market reality. With the global pandemic affecting the economy and causing general uncertainty all around, consumers have readjusted their confidence levels and are also more cautious with their spend.”

Ghanaians have significantly dropped their outlook around  their job prospects, with less than half (45%) saying they will be good or excellent in the next 12 months – a 16 point decrease from the previous quarter. In terms of the state of their personal finances over the next 12 months, 60% say they are excellent or good, again a substantial 16 point drop from the previous quarter.

Ghanaians propensity to purchase has also seen a considerable decrease quarter on quarter, with the number of those who think now is a good or excellent time to purchase what they want or need drop from 52% to 33% in the second quarter.

Only 43% of Ghanaians say they have spare cash, down 13 points from the previous quarter. Once they meet their essential living expenses, the highest number of consumers (74%) put their spare cash into savings, followed by 73% on home improvements/decorating and 56% who would invest in stocks and mutual funds. One of the most significant drops in discretionary spending is on holidays down from 58% to 27% – a clear indicator of consumers’ mindset shift away from non-essential services and their desire to avoid unnecessary travel.

Reality bites

When asked whether they had changed their spending to save on household expenses compared to this time last year, 75% said yes, up seven points from the previous quarter. To reduce expenses, 53% said they spent less on new clothes, 52% on out of home entertainment, with the same figure deferring on the replacement of major household items.

When looking at the real-life factors that are affecting their outlook, the top consumer concerns over the next twelve months were increasing food prices (29%), followed by work/life balance (23%) and their children’s education (22%). Nkembe comments; “Ghana has previously experienced strong business prospects and with the relatively earlier easing of restrictions to stimulate its economy, recovery in Ghana is likely to rebound sooner. We expect consumers to revert to previous consumption behaviours, although some of their attitudes will have fundamentally or permanently changed post the pandemic.”

Subdued sentiment in Nigeria

In tandem with the rest of the world, Nigeria’s CCI figure dropped by 14 points. Commenting on the reasons for this, Nielsen Nigeria MD Ged Nooy says; “As Africa’s largest economy and the largest exporter of oil, Nigeria’s economy was already under immense pressure before the COVID-19 lockdown due to the collapse in international oil prices. Based on the additional economic pressure as a result of the COVID-19 pandemic, Nigeria, therefore, instituted a fairly early easing of its 5-week lockdown in early May due to the adverse financial effects on its economy and population.”

Looking at the consumer picture during this time (Quarter 2, 2020) Nigerian job prospects declined with less than half viewing them as excellent or good, a 14 point drop from the previous quarter. Nigerians’ sentiment around the state of their personal finances also showed a decline with 59% who think they will be excellent or good over the next year, having decreased 19 points from the previous quarter. Immediate-spending intentions also declined, with only a third of the respondents saying “now is a good or excellent time to purchase” what they want or need, a 14 point drop from the previous quarter.

In terms of whether Nigerians have spare cash to spend, 32% said yes, versus 50% in the previous quarter. When we look at Nigerians spending priorities, once they have met their essential living expenses, 81% said they would put their spare cash into savings, 73% said home improvements and decorating and 66% would invest in shares/mutual funds.

Seventy-six per cent of Nigerians said they had changed their spending to save on household expenses compared to this time last year. To reduce expenses, 67% said they had delayed the replacement of major household items (a 10 point increase on the previous quarter). Sixty-four per cent said they would spend less on new clothes and 56% said less out of home entertainment – both of which are understandable given ongoing restricted living patterns.

In the next 12 months, Nigerians said their top concern would be attaining a work/life balance (31%), which has seen the biggest increase of eight points compared to the previous quarter. This is followed by increasing food prices (23%) and concerns over the economy (19%).

Elaborating on these results, Nooy says; “Economic recovery has been sluggish and will remain severely constricted due to the oil price crash amidst and beyond the pandemic. For Nigeria’s manufacturing and retail sectors to rebound will require a sharp focus, as trade opportunities and execution remains severely constrained, having further deteriorated during the partially restricted living period.”

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.

Business

Npower News: Npower Stipend News, Npower News on Permanency

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npower latest news

Npower News on Permanency and Payment of Allowances

The N-power Youths Congress has made passionate plead to President Muhammadu Buhari to fulfill the campaign promise he made to the 500,000 Npower Batches A and B beneficiaries.

The group led by its national coordinator, Comrade Joseph Enam Magar, to the NUJ Press Center Maiduguri demanded the payment of all outstanding allowances of N30,000 for exited Batch A and Batch B from June 2016 and July 2019, respectively.

Maga said “We are hereby once again reminding the government of their promises to us and that we will never relent until federal government fulfils it’s promises. The State Representatives of Npower Beneficiaries have earlier stated our demands on the previous Press Conference and here we are reinstating the demands again.

“The Batches A and B of N-power Beneficiaries who according to the Minister of Humanitarian Affairs and Disaster Management were disengaged since the month of June and July respectively are not happy for being sent back to the streets.

“We were struggling in different spheres of life to make a living. We were meant to quit the things we were doing before to embrace Npower with the promise of being absolved into the Federal Government scheme at the end of the day.

“We were made to serve our fatherland with a token of 30,000. Most of us have families with children, paying of school fees, electricity bills, pipe borne water, transportation, feeding and other miscellaneous expenses on the grace of 30,000.

“How much is a bag of rice, ground nut oil, etc if I may ask? Some of us have siblings and sick parents whose hopes are attached to the same 30,000.

“To worsen it all, the same 30,000 will not be paid as at when due. Funny enough, our government under the control of Sadiya Farouk, the Ministers of Humanitarian affairs and disaster management want us to save from the 30,000.

“This is an amount that is not up to one quarter percent of what they give to their children for shopping; an amount that does not reach what their children put on as cloths and jewelries on daily basis.”

Speaking further he said,” in addition, we can recall that before the 2019 Presidential Election, we were made to understand by Mr. Afolabi that our voter’s cards determine our permanency. “

“We mobilized ourselves, came out in mass to support this government. We spent our money going to Abuja for the campaign so as to ensure that President Muhammad Buhari regains his office as the president of Nigeria. Npower beneficiaries in various states and Local Governments were equally forced by their focal persons to come out in mass during APC campaign.

“So many states even took attendance and beneficiaries that didn’t show up were penalized. All these were geared towards ensuring that Mr. President, President Muhammadu Buhari excel as the president so that the promises of absorption that was made through Mr. Afolabi will be fulfilled.

“But at the end, our hopes were truncated as we have been pushed back to the streets without absorption or an exit package.”

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MTN Nigeria Picks Karl Toriola as Chief Executive Officer (CEO) Designate

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Karl O Toriola

MTN Nigeria, Africa’s leading telecommunications company, has appointed Mr. Karl Toriola as the Chief Executive Officer (CEO) designate.

In a statement released on the Nigerian Stock Exchange’s website, the company said the appointment is effective from the 1st of March 2021 to give enough time for an orderly handover.

According to the company, Mr. Toriola is presently the Vice President of West and Central Africa (WECA), excluding Nigeria and Ghana, since 2016.

The statement reads “During his tenure, the WECA markets have made significant commercial and strategic strides. These include the improvement of market shares within the region and the development of mobile financial services.

“Since joining the Group in 2006, Mr. Toriola has also held a number of senior operational roles including Chief Technical Officer of MTN Nigeria, CEO of MTN Cameroon and MTN Group Operations Executive. Mr. Toriola has at various times in his career in MTN Group, had oversight responsibility of 16 of the Group subsidiaries and serves on various MTN boards, including MTN Nigeria.

“Mr. Toriola obtained a Bachelor of Science in Electronic and Electrical Engineering from the University of Ife, a Master of Science degree in Communication Systems from the University of Wales, and attended the General Management Program at Harvard Business School. In addition, he has attended several executive development courses at various institutions including Wharton Business School, Institute of Management Development and London Business School.”

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NESBITT Acquires Peugeot Nigeria, Plans to Invest $150m in the Company

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Peugeot

NESBITT to Invest $150 Million in Peugeot Nigeria

Peugeot Automobile Nigeria (PAN) has been acquired by the NESBITT Investment Nigeria, according to the statement from NESBITT.

The new owner planned to invest $150 million into the company in the next three years to revamp the automobile company.

It said the $150 million would help retool and upgrade PAN’s assembly line and boost working capital.

Speaking on the acquisition, Ahmed Wadada-Aliyu, the new chairman of PAN, said the automobile manufacturer would be introducing new brands into the market to establish brand affordability in Nigeria.

PAN under the supervision of the board shall undergo massive restructuring, and in so doing, we shall observe strict governance protocols, transparency, business integrity, efficiency and ethics in our undertakings,” he said.

“In 2019, Nigeria imported at least 400,000 used cars as against 68,000 brand new vehicles. Because of this imbalance, PAN will be introducing new brands of vehicles into the market to re-launch brand affordability in Nigeria such that Nigerians will have access to brand new vehicles.”

“Our biggest concern is the over 50 assembly plants that have not made any matching investments but are enjoying the incentives of the auto policy.”

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