Unilever Nigeria reported a Q1 profit of $6.7 million, a 65 percent increase. This surge was primarily driven by strong sales in its food products segment, followed by personal care and beauty, and wellbeing categories.
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Wednesday, April 30, 2025
Video - Unilever Nigeria reports 65 percent surge in Q1 profit, driven by strong sales
Unilever Nigeria reported a Q1 profit of $6.7 million, a 65 percent increase. This surge was primarily driven by strong sales in its food products segment, followed by personal care and beauty, and wellbeing categories.
Friday, April 25, 2025
Aliko Dangote to Join the World Bank
In response, the Nigerian billionaire accepted the invitation, noting that being icnluded in the group was an honor.
“I am both honoured and excited to accept my appointment to the World Bank’s Private Sector Investment Lab, dedicated to advancing investment and employment in emerging economies,” he said.
“This opportunity aligns with my long-standing commitment to sustainable development and unlocking the potential of developing economies.
Drawing inspiration from the remarkable successes of the Asian Tigers, which have demonstrated the power of strategic investment and focused economic policy, I am eager to collaborate with fellow leaders to replicate such outcomes across other regions,” he added.
What the World Bank said
Under the broader expansion of its Private Sector Investment Lab, which is currently starting a new phase, the World Bank, on Wednesday, announced Dangote's appointment.
This new phase is aimed at scaling up ideas to attract private capital and generate employment in the developing world, as reported by the Punch.
The global lender also noted that the aforementioned new phase has expanded the Lab's membership to include industry executives with experience creating jobs in developing markets, which is consistent with the Bank's growing role in job creation as a major driver of growth.
During the announcement, they mentioned that they had invited the Nigerian billionaire, alongside Bill Anderson, CEO of Bayer AG, Sunil Bharti Mittal, Chair of Bharti Enterprises, and Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation, to the recent iteration of the Lab.
“These industries have a proven ability to translate investment into broad-based employment and economic opportunity”, the World Bank head Ajay Banga stated.
“We are grateful to the original Lab leaders who helped us deliver strong results in the initial work period,” he added.
Currently, according to the Dangote website, Dangote cement alone has been able to support 54,000 employment in four African nations where the business operates, including Nigeria, Ethiopia, Senegal, and South Africa.
His recently established single train 650,000 barrels refinery also employs 29,000 Nigerians and 11,000 foreigners.
AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group were among the notable CEOs who launched the Lab.
Under the broader expansion of its Private Sector Investment Lab, which is currently starting a new phase, the World Bank, on Wednesday, announced Dangote's appointment.
This new phase is aimed at scaling up ideas to attract private capital and generate employment in the developing world, as reported by the Punch.
The global lender also noted that the aforementioned new phase has expanded the Lab's membership to include industry executives with experience creating jobs in developing markets, which is consistent with the Bank's growing role in job creation as a major driver of growth.
During the announcement, they mentioned that they had invited the Nigerian billionaire, alongside Bill Anderson, CEO of Bayer AG, Sunil Bharti Mittal, Chair of Bharti Enterprises, and Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation, to the recent iteration of the Lab.
“These industries have a proven ability to translate investment into broad-based employment and economic opportunity”, the World Bank head Ajay Banga stated.
“We are grateful to the original Lab leaders who helped us deliver strong results in the initial work period,” he added.
Currently, according to the Dangote website, Dangote cement alone has been able to support 54,000 employment in four African nations where the business operates, including Nigeria, Ethiopia, Senegal, and South Africa.
His recently established single train 650,000 barrels refinery also employs 29,000 Nigerians and 11,000 foreigners.
AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group were among the notable CEOs who launched the Lab.
By Chinedu Okafor, Business Insider Africa
Wednesday, April 2, 2025
Nigeria affected by Trump sweeping tariffs
The United States President, Donald Trump, Wednesday enacted sweeping new tariffs in a move that could escalate trade tensions globally at what he tagged “liberation day”.
Trump said the U.S. will implement “reciprocal tariffs” on all countries of “approximately half” of what they charge us.
Among the countries slammed with reciprocal tariff is Nigeria. Under the tariff plan, Nigerian exports will be charged 14 per cent tariff as against the 27 per cent charged by the Federal Government.
Last year, Nigeria exported goods worth N931 billion to the United States, with crude oil forming the bulk of the goods. It, however, imported N1.05 trillion worth of goods from the U.S. in the same period.
Bringing out a chart to show the audience, he showed that China “charges” the U.S. a tariff of 67%, so the United States will charge China a 34% tariff.
The chart also showed that the United States will charge the European Union a 20% tariff, Vietnam a 46% tariff, Taiwan 32%, Japan 24%, India 26%, South Korea 25%, Thailand 36%, Cambodia 49% and more.
Trump concluded his “make America wealthy again” event in the White House Rose Garden by signing two executive orders. The first closes “the de minimus loophole” on China, which has allowed the country to export cheap goods to the United States without paying taxes and import duties.
The second implements the president’s “reciprocal tariffs”, which the president explained includes a 25% tariff on all imported cars and 10% to 49% tariffs on all goods imported from abroad.
Trump said the tariffs he announced would generate “$6 trillion in investments” but experts explain that tariffs are actually paid for by American businesses and consumers. That would make it the largest “tax hike” in U.S. history.
The European Union, which is facing 20% tariffs on all exports to the U.S., will not react until today when the European Commission president Ursula von der Leyen will make a statement.
By Dennis Erezi, The Guardian
Trump said the U.S. will implement “reciprocal tariffs” on all countries of “approximately half” of what they charge us.
Among the countries slammed with reciprocal tariff is Nigeria. Under the tariff plan, Nigerian exports will be charged 14 per cent tariff as against the 27 per cent charged by the Federal Government.
Last year, Nigeria exported goods worth N931 billion to the United States, with crude oil forming the bulk of the goods. It, however, imported N1.05 trillion worth of goods from the U.S. in the same period.
Bringing out a chart to show the audience, he showed that China “charges” the U.S. a tariff of 67%, so the United States will charge China a 34% tariff.
The chart also showed that the United States will charge the European Union a 20% tariff, Vietnam a 46% tariff, Taiwan 32%, Japan 24%, India 26%, South Korea 25%, Thailand 36%, Cambodia 49% and more.
Trump concluded his “make America wealthy again” event in the White House Rose Garden by signing two executive orders. The first closes “the de minimus loophole” on China, which has allowed the country to export cheap goods to the United States without paying taxes and import duties.
The second implements the president’s “reciprocal tariffs”, which the president explained includes a 25% tariff on all imported cars and 10% to 49% tariffs on all goods imported from abroad.
Trump said the tariffs he announced would generate “$6 trillion in investments” but experts explain that tariffs are actually paid for by American businesses and consumers. That would make it the largest “tax hike” in U.S. history.
The European Union, which is facing 20% tariffs on all exports to the U.S., will not react until today when the European Commission president Ursula von der Leyen will make a statement.
Video - Unilever Nigeria reports 79 percent profit surge in 2024
The company says growth in its food and personal care segments helped fuel the profits. However, Unilever remains cautious about macroeconomic risks, citing volatile oil prices, forex shortages, and unfavorable fiscal policies.
Thursday, March 27, 2025
Nigeria moves to become third African country to offer citizenship by investment program
The citizenship by investment program will allow foreign investors to obtain Nigerian nationality in exchange for significant economic contributions.
This move aligns with global trends where countries leverage CBI programs to attract foreign capital, boost economic growth, and increase foreign direct investment.
Currently, Egypt and Mauritius are the only African nations offering formal citizenship by investment schemes.
Nigeria’s entry into this space could position it as a key player in attracting wealthy investors, entrepreneurs, and high-net-worth individuals seeking access to Africa’s largest economy.
This move aligns with global trends where countries leverage CBI programs to attract foreign capital, boost economic growth, and increase foreign direct investment.
Currently, Egypt and Mauritius are the only African nations offering formal citizenship by investment schemes.
Nigeria’s entry into this space could position it as a key player in attracting wealthy investors, entrepreneurs, and high-net-worth individuals seeking access to Africa’s largest economy.
The CIB program in focus
Egypt and Mauritius offer distinct Citizenship by Investment (CBI) programs.
Egypt requires a $250,000 non-refundable contribution or investment in approved real estate or business.
Mauritius offers a Permanent Residency by Investment route, requiring a $375,000 real estate investment for a 20-year residence permit, with citizenship eligibility after seven years.
Nigeria's potential CBI program may follow either model, depending on its economic priorities and political stance.
Egypt and Mauritius offer distinct Citizenship by Investment (CBI) programs.
Egypt requires a $250,000 non-refundable contribution or investment in approved real estate or business.
Mauritius offers a Permanent Residency by Investment route, requiring a $375,000 real estate investment for a 20-year residence permit, with citizenship eligibility after seven years.
Nigeria's potential CBI program may follow either model, depending on its economic priorities and political stance.
CIB as bait for foreign investors?
Nigeria's House of Representatives has taken a significant step towards granting citizenship to foreign investors who meet specific financial thresholds.
The Citizenship by Investment Bill, sponsored by the Deputy Speaker, Benjamin Kalu and other lawmakers passed its second reading and aims to introduce a new class of citizenship known as citizenship by investment.
This move is designed to attract substantial foreign direct investment by offering nationality to individuals who make significant economic contributions to the country.
Although specific details about Nigeria’s program—such as the minimum investment threshold, qualifying sectors, and application criteria—are yet to be unveiled, experts suggest it could include investments in real estate, government bonds, or key economic sectors like petroleum, manufacturing and technology.
The proposed alteration aims to attract foreign direct investment by granting Nigerian citizenship to individuals who invest in the Nigerian economy above a specified financial threshold or in strategic sectors critical to national development.
If implemented successfully, Nigeria’s citizenship by investment program could reshape its economic landscape, making it a more attractive destination for global investors while strengthening its position as a major African economic hub.
Nigeria's House of Representatives has taken a significant step towards granting citizenship to foreign investors who meet specific financial thresholds.
The Citizenship by Investment Bill, sponsored by the Deputy Speaker, Benjamin Kalu and other lawmakers passed its second reading and aims to introduce a new class of citizenship known as citizenship by investment.
This move is designed to attract substantial foreign direct investment by offering nationality to individuals who make significant economic contributions to the country.
Although specific details about Nigeria’s program—such as the minimum investment threshold, qualifying sectors, and application criteria—are yet to be unveiled, experts suggest it could include investments in real estate, government bonds, or key economic sectors like petroleum, manufacturing and technology.
The proposed alteration aims to attract foreign direct investment by granting Nigerian citizenship to individuals who invest in the Nigerian economy above a specified financial threshold or in strategic sectors critical to national development.
If implemented successfully, Nigeria’s citizenship by investment program could reshape its economic landscape, making it a more attractive destination for global investors while strengthening its position as a major African economic hub.
By Solomon Ekanem, Business Insider Africa
Wednesday, March 26, 2025
Visa To Set Up A Data Centre In Nigeria
Visa has announced an investment into the construction of a state-of-the-art data center in Nigeria. This was revealed by Visa’s regional president, Andrew Torre, during a visit to Vice President Kashim Shettima.
This move signals a leap forward for Nigeria’s digital infrastructure and is more than just a corporate expansion. It is a strategic play to solidify Nigeria’s position in the global tech landscape. For years, Nigeria has relied on external data infrastructure. This has led to slow data processing (latency), concerns about data ownership (sovereignty), and vulnerability to disruptions outside the country.
Visa’s data center aims to solve these problems by bringing data storage and processing closer to home. This translates to faster, more reliable online transactions for everyone, from everyday consumers to large businesses.
Andrew Torre said that this project complements Visa’s existing $1 billion investment in Nigeria. This includes partnerships with Moniepoint for digital payment solutions, Interswitch, and ThriveAgric, supporting smallholder farmers and food security. The data center, however, is designed to bring new technologies to the Nigerian market, further fueling the nation’s digital economy.
Vice-President Shettima warmly welcomed Visa’s expansion, highlighting the Nigerian government’s commitment to fostering partnerships and driving digital growth. He particularly praised Visa’s investment in ThriveAgric, aligning with the government’s focus on modernizing the agriculture sector. He stated that Nigeria is where the action is noting the country’s leading position in Africa’s fintech scene.
The impact will range from faster online payments, smoother e-commerce experiences, and more reliable digital services across all sectors. This increased efficiency will stimulate economic growth and create a more robust digital ecosystem. Beyond speed, the data center addresses data sovereignty. Keeping data within Nigeria’s borders ensures greater control and security, empowering businesses and consumers alike.
By Sonya Israni, CIO Africa
This move signals a leap forward for Nigeria’s digital infrastructure and is more than just a corporate expansion. It is a strategic play to solidify Nigeria’s position in the global tech landscape. For years, Nigeria has relied on external data infrastructure. This has led to slow data processing (latency), concerns about data ownership (sovereignty), and vulnerability to disruptions outside the country.
Visa’s data center aims to solve these problems by bringing data storage and processing closer to home. This translates to faster, more reliable online transactions for everyone, from everyday consumers to large businesses.
Andrew Torre said that this project complements Visa’s existing $1 billion investment in Nigeria. This includes partnerships with Moniepoint for digital payment solutions, Interswitch, and ThriveAgric, supporting smallholder farmers and food security. The data center, however, is designed to bring new technologies to the Nigerian market, further fueling the nation’s digital economy.
Vice-President Shettima warmly welcomed Visa’s expansion, highlighting the Nigerian government’s commitment to fostering partnerships and driving digital growth. He particularly praised Visa’s investment in ThriveAgric, aligning with the government’s focus on modernizing the agriculture sector. He stated that Nigeria is where the action is noting the country’s leading position in Africa’s fintech scene.
The impact will range from faster online payments, smoother e-commerce experiences, and more reliable digital services across all sectors. This increased efficiency will stimulate economic growth and create a more robust digital ecosystem. Beyond speed, the data center addresses data sovereignty. Keeping data within Nigeria’s borders ensures greater control and security, empowering businesses and consumers alike.
Friday, March 21, 2025
Video - Nigerian farm milks scorpions for venom, eyes lucrative global market
A farm is turning scorpion venom into a lucrative business in Lagos, Nigeria. With over 10,000 scorpions, farmers extract the highly valuable venom for use in pharmaceuticals, biotech, and cosmetics.
Monday, March 17, 2025
Video - Nigerian turns passion for crochet into thriving footwear enterprise
Lagos businesswoman Ifunanya Nwakwudo creates durable and stylish crochet footwear. Her creations helped her start a small business.
Friday, March 14, 2025
Video - Nigerians shift away from cable television
Nigerians shift away from cable television Rising subscription fees make it increasingly expensive for consumers to stay connected to cable.
Thursday, March 6, 2025
Nigerian Watchdog Sues MultiChoice Nigeria Over Price Hike
The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria has initiated legal proceedings against MultiChoice Nigeria Limited and its CEO, John Ugbe, for breaching regulatory guidelines. According to a statement released on Wednesday, the action comes after MultiChoice Nigeria ignored a directive issued by the FCCPC regarding a proposed price increase for its pay-TV services.
Last month, the FCCPC instructed MultiChoice Nigeria to maintain its current pricing for its pay-TV services, including DSTV and GOtv, until a review of the proposed price hike was completed. Despite this directive, the company proceeded with the planned price adjustment on March 1, 2025, an act the commission describes as a clear violation of its oversight.
In response to this defiance, the FCCPC filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court in Lagos. The lawsuit includes three counts of offenses, with the agency accusing the company of deliberately obstructing its inquiry by going ahead with the price hike despite the explicit order to refrain from doing so.
A post on the social media platform X (formerly Twitter) by the FCCPC emphasized the agency’s stance, stating, “Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offenses for willfully obstructing the commission’s inquiry by implementing a price hike contrary to directives.”
At the time of reporting, MultiChoice Nigeria had not provided any immediate response to the charges.
This legal action is the latest in a series of regulatory challenges the company has faced. In 2024, MultiChoice reached a settlement with Nigerian tax authorities, agreeing to pay approximately $37.3 million in taxes for its local subsidiary.
Last month, the FCCPC instructed MultiChoice Nigeria to maintain its current pricing for its pay-TV services, including DSTV and GOtv, until a review of the proposed price hike was completed. Despite this directive, the company proceeded with the planned price adjustment on March 1, 2025, an act the commission describes as a clear violation of its oversight.
In response to this defiance, the FCCPC filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court in Lagos. The lawsuit includes three counts of offenses, with the agency accusing the company of deliberately obstructing its inquiry by going ahead with the price hike despite the explicit order to refrain from doing so.
A post on the social media platform X (formerly Twitter) by the FCCPC emphasized the agency’s stance, stating, “Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offenses for willfully obstructing the commission’s inquiry by implementing a price hike contrary to directives.”
At the time of reporting, MultiChoice Nigeria had not provided any immediate response to the charges.
This legal action is the latest in a series of regulatory challenges the company has faced. In 2024, MultiChoice reached a settlement with Nigerian tax authorities, agreeing to pay approximately $37.3 million in taxes for its local subsidiary.
Wednesday, February 19, 2025
Aliko Dangote re-enters top 100 richest individuals list in Forbes 2025
According to Forbes' real-time ranking of billionaires, Dangote’s net worth climbed to approximately $23.9 billion from $13.4 billion last year. This increase of around $10.5 billion (78.4 per cent) was driven by the recent commencement of operations of Dangote Petroleum Refinery commenced operations in Lagos.
With a 92.3 per cent stake in the Dangote refinery, the 67-year-old billionaire has re-entered the ranks of the top 100 richest individuals for the first time since 2018. He also stands out prominently on the list as the only African among the top 100 richest individuals in the world.
South African billionaire Johann Rupert holds the second spot in Africa, at 164th with a net worth of $14.2 billion. Nicky Oppenheimer and family come in third place, at 288th position, with a net worth of $9.5 billion.
The Dangote refinery, with a capacity of 650,000 barrels per day, is the largest in Africa and the seventh-largest refinery globally. Since the commencement of operations of the petroleum refinery in Lagos, Dangote has disrupted the Nigerian government’s oil monopoly and has overcome substantial challenges from the Nigerian “oil mafia.”
The refinery is already influencing global energy dynamics after it recently signed a deal to export two cargoes of aviation fuel to Saudi Arabia. Locally, the refinery is already influencing the import-export market, as Nigeria's petrol imports have reached their lowest level in eight years, reducing reliance on foreign suppliers and strengthening fuel independence.
In an interview with Forbes, Dangote shared his vision for African industrialization, stating, "We have to build our nation by ourselves. We have to build our continent by ourselves, not rely on foreign investment." He described the refinery project as "the biggest risk of my life," emphasizing the stakes involved for his financial future.
Zainab Usman, Director of the Africa Programme at the Carnegie Endowment for International Peace, remarked that many Nigerians believe Dangote to be a hero, a true industrialist driving transformative change in the country and in Africa.
By Victor Oluwole, Business Insider Africa
Related story: Nigeria's richest man Aliko Dangote takes on the 'oil mafia'
Tuesday, February 11, 2025
Dangote unveils new Nigerian-made Peugeot vehicle, boosts domestic auto industry
Equipped with a high-performance 1.6-liter turbo engine, the Peugeot 3008 GT expands DPAN’s existing lineup from its state-of-the-art assembly plant in Kaduna.
This marks a significant step in Dangote’s commitment to boosting local vehicle production and enhancing Nigeria’s auto industry.
Peugeot's first assembly of the 3008 model in Africa took place in Ghana in 2022.
This marked a significant milestone in the brand’s expansion into the continent, specifically the production of its globally acclaimed Peugeot 3008 SUV.
The assembly was carried out at the Silver Star Auto-owned Tema Assembly Plant, a result of a partnership between Citroën, Peugeot, and Silver Star Auto that began in 2019.
DPAN products
Dangote Peugeot Automobiles Nigeria Limited (DPAN) began production with the re-launch of the Peugeot brand in Nigeria, starting with the local assembly of the Peugeot 301 at its Kaduna plant.
The company has since expanded its lineup to include the Landtrek pickup, 3008, 5008, and the latest 508 models.
Dangote entered Nigeria’s automobile industry in 2016 when his group, alongside the Kaduna State Government and the Bank of Industry, acquired a majority stake in Peugeot Automobile.
By 2017, he secured a license for a Peugeot assembly plant, and in 2022, Dangote Peugeot Automobiles Nigeria Limited (DPAN) began operations.
DPAN, a joint venture with Stellantis Group, the Kano and Kaduna state governments, and Dangote Industries, operates from the Greenfield Ultima Assembly Plant in Kaduna, with a daily capacity of 120 vehicles.
Expanding into commercial vehicles, Dangote launched the Dangote Sinotruk West Africa Ltd (DSWAL) CKD plant in Lagos.
The plant assembles heavy-duty, medium, and light trucks, producing up to 10,000 units annually and creating 3,000 jobs.
Nigeria’s auto manufacturing market
Nigeria is making strides in boosting local vehicle production to reduce reliance on imports and drive industrial growth.
Key players like Innoson Vehicle Manufacturing (IVM), Stallion Group, Nord, and Dangote Group have boosted the local vehicle assembly market, increasing domestic production capacity.
The Nigerian Automotive Industry Development Programme (NAIDP) 2024-2034 aims to promote local manufacturing of vehicle spare parts and reduce imports, which cost around $1 billion annually.
Developing local components like batteries, tyres, and exhaust systems is crucial for strengthening the industry.
By boosting local manufacturing, Nigeria can reduce its dependence on imports and achieve broader national goals for economic development.
Nigeria is making strides in boosting local vehicle production to reduce reliance on imports and drive industrial growth.
Key players like Innoson Vehicle Manufacturing (IVM), Stallion Group, Nord, and Dangote Group have boosted the local vehicle assembly market, increasing domestic production capacity.
The Nigerian Automotive Industry Development Programme (NAIDP) 2024-2034 aims to promote local manufacturing of vehicle spare parts and reduce imports, which cost around $1 billion annually.
Developing local components like batteries, tyres, and exhaust systems is crucial for strengthening the industry.
By boosting local manufacturing, Nigeria can reduce its dependence on imports and achieve broader national goals for economic development.
By Solomon Ekanem, Business Insider Africa
Friday, February 7, 2025
Video - Nigeria to conduct MSME census to boost growth
Nigeria launches nationwide census to formalize small businesses, improve funding access, and strengthen economic policies.
Friday, January 24, 2025
Visa invests in Nigeria's Moniepoint
Founded in 2015, Moniepoint initially focused on providing infrastructure and payments technology for banks and financial institutions.
It has since grown into Nigeria's leading business banking provider and is now the country's largest merchant acquirer, powering most of the country’s Point of Sale transactions. In 2023, it expanded beyond SMEs and entered the personal banking market through its subsidiary, Moniepoint Microfinance Bank.
The firm now claims some 10 million businesses and individual customers, helping them access payments, banking, credit, and business management tools and processing $22 billion monthly.
Visa's investment comes soon after a $110 million Series C investment led by Development Partners International’s African Development Partners III fund and joined by Google’s Africa Investment Fund and African VC Verod Capital.
Tosin Eniolorunda, CEO, Moniepoint, says: "Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem."
Andrew Torre, regional president, CEE and Middle East and Africa, Visa, adds: "By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation."
It has since grown into Nigeria's leading business banking provider and is now the country's largest merchant acquirer, powering most of the country’s Point of Sale transactions. In 2023, it expanded beyond SMEs and entered the personal banking market through its subsidiary, Moniepoint Microfinance Bank.
The firm now claims some 10 million businesses and individual customers, helping them access payments, banking, credit, and business management tools and processing $22 billion monthly.
Visa's investment comes soon after a $110 million Series C investment led by Development Partners International’s African Development Partners III fund and joined by Google’s Africa Investment Fund and African VC Verod Capital.
Tosin Eniolorunda, CEO, Moniepoint, says: "Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem."
Andrew Torre, regional president, CEE and Middle East and Africa, Visa, adds: "By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation."
Wednesday, January 22, 2025
MTN Shares Surge After Nigeria Raises Telecoms Tariffs by 50%
MTN Nigeria Communications Plc’s shares jumped after the Nigerian government raised telecommunications tariffs by 50% to offset the impact of the collapse in the naira and surging inflation.
The stock surged the maximum 10% to 256.30 naira at close in Lagos, the commercial capital. Rival Airtel Africa Plc was unchanged at 2,156.90 naira.
The Nigerian Communications Commission announced the tariff hike late Monday to “support the ability of operators to continue investing in infrastructure and innovation,” according to a statement.
The tariff increase — the first in more than a decade — was half of what companies such as MTN had asked for to weather harsh economic conditions, including a 41% depreciation in the naira against the dollar last year and inflation running near a three-decade high.
Even so, MTN Nigeria Chief Executive Officer Karl Toriola said the adjustment was “an important step toward addressing the impact of the prevailing economic challenges on the company and industry. “It will enable us to maintain the critical investments required to deliver reliable, high-quality services,” he said in a filing to the Nigerian Exchange Group.
The increase will also help telecommunications companies in Africa’s most-populous nation return to profitability, Bismarck Rewane, CEO at consultancy Financial Derivatives Co., said. “Giving them the 50% tariff increase is a boost. We are going to see an increase in base stations, an increase in 5G deployment, an increase in capex,” he said by phone.
While the tariff hike is short of what the companies had asked for, Avior Capital Markets Ltd. analyst Mike Steere said it “far exceeds” the 10% to 20% price rise it had factored into its full-year earnings model for MTN in 2025. The increase should eventually support medium-term revenue growth of over 30%, he said.
Higher prices are also likely to have an inflationary impact in the short—term, Rewane said.
“It increases costs, which will pass through to the consumer,” he said. “But you will see that the telcos will have to invest more in capex and the quality of service will become a key issue. If quality of service improves, you will see productivity will improve. That may offset part of the inflationary impact.”
By Nduka Orjinmo and Emele Onu, Bloomberg
The stock surged the maximum 10% to 256.30 naira at close in Lagos, the commercial capital. Rival Airtel Africa Plc was unchanged at 2,156.90 naira.
The Nigerian Communications Commission announced the tariff hike late Monday to “support the ability of operators to continue investing in infrastructure and innovation,” according to a statement.
The tariff increase — the first in more than a decade — was half of what companies such as MTN had asked for to weather harsh economic conditions, including a 41% depreciation in the naira against the dollar last year and inflation running near a three-decade high.
Even so, MTN Nigeria Chief Executive Officer Karl Toriola said the adjustment was “an important step toward addressing the impact of the prevailing economic challenges on the company and industry. “It will enable us to maintain the critical investments required to deliver reliable, high-quality services,” he said in a filing to the Nigerian Exchange Group.
The increase will also help telecommunications companies in Africa’s most-populous nation return to profitability, Bismarck Rewane, CEO at consultancy Financial Derivatives Co., said. “Giving them the 50% tariff increase is a boost. We are going to see an increase in base stations, an increase in 5G deployment, an increase in capex,” he said by phone.
While the tariff hike is short of what the companies had asked for, Avior Capital Markets Ltd. analyst Mike Steere said it “far exceeds” the 10% to 20% price rise it had factored into its full-year earnings model for MTN in 2025. The increase should eventually support medium-term revenue growth of over 30%, he said.
Higher prices are also likely to have an inflationary impact in the short—term, Rewane said.
“It increases costs, which will pass through to the consumer,” he said. “But you will see that the telcos will have to invest more in capex and the quality of service will become a key issue. If quality of service improves, you will see productivity will improve. That may offset part of the inflationary impact.”
Tuesday, January 21, 2025
Nigeria approves tariff hikes to protect Telecoms operator margins
The Nigerian Communications Commission (NCC) approved tariff increases for operators in a bid to balance rising operational costs with service quality in Nigeria’s challenging economic climate.
Operators sought to double prices, the NCC capped the increase at 50%, emphasising the need to protect consumers while enabling sustainable industry growth.
In a statement, the NCC noted that tariffs had “remained static” since 2013 despite mounting operational costs. It said the adjustment aims to address a “significant gap between operational costs and current tariffs” while ensuring service delivery to consumers remains unaffected.
The regulator added that higher tariffs would allow operators to invest in infrastructure and fund innovation projects, ultimately benefiting consumers through improved services.
Operators have been mandated to clearly communicate price changes to customers and demonstrate “measurable improvements in service delivery” alongside the increases.
Consumer advocacy group, the National Association of Telecommunications Subscribers (NATCOMS), has vowed to contest the decision. NATCOMS president Deolu Ogunbanjo criticised the NCC for failing to involve subscribers in discussions, despite the regulator’s assertion that it held “extensive consultations with key stakeholders across the public and private sectors.” NATCOMS had previously advocated for a more modest increase of 5–10%.
Operators sought to double prices, the NCC capped the increase at 50%, emphasising the need to protect consumers while enabling sustainable industry growth.
In a statement, the NCC noted that tariffs had “remained static” since 2013 despite mounting operational costs. It said the adjustment aims to address a “significant gap between operational costs and current tariffs” while ensuring service delivery to consumers remains unaffected.
The regulator added that higher tariffs would allow operators to invest in infrastructure and fund innovation projects, ultimately benefiting consumers through improved services.
Operators have been mandated to clearly communicate price changes to customers and demonstrate “measurable improvements in service delivery” alongside the increases.
Consumer advocacy group, the National Association of Telecommunications Subscribers (NATCOMS), has vowed to contest the decision. NATCOMS president Deolu Ogunbanjo criticised the NCC for failing to involve subscribers in discussions, despite the regulator’s assertion that it held “extensive consultations with key stakeholders across the public and private sectors.” NATCOMS had previously advocated for a more modest increase of 5–10%.
By Manny Pham, Developing Telecoms
Monday, January 13, 2025
Google bans gambling ads in Nigeria
Google has implemented new comprehensive restrictions on gambling advertising in Nigeria, following a recent court ruling.
On Wednesday, 8 January, Google updated its ‘country-specific policies‘ related to the advertising of gambling and games for Nigerian audiences.
Effective immediately, Google will prohibit the advertising of online gambling products and offers in Nigeria. The ban on “gambling-related products” extends to promotional items such as vouchers and bonus codes, educational materials like books and eBooks, as well as gambling-related information, including tips, odds, and handicapping.
Although specific circumstances were not detailed by Google, last November Nigeria’s gambling sector was disrupted by the Supreme Court’s decision to void the National Lottery Act 2005.
The judgment transferred the authority to regulate lotteries and games of chance from the Federal Government to the House Assemblies of the States within the Federation.
The governance of Nigeria’s gambling licences has been a contentious issue since the introduction of the Lottery Act in 2005, as states have frequently contested the rule of federal authorities.
Long-standing conflicts saw the Assembly of Lagos argue that “lottery” falls under residual matters and is not part of the exclusive legislative list reserved for the federal government, which includes domains such as defence and banking. Lagos state sought judicial clarification on which level of government has the authority to regulate lotteries.
Following the ruling, the National Lottery Act is now limited in scope, applying exclusively to Nigeria’s Federal Capital Territory (FCT) as State assemblies, including Lagos, will assume responsibility for regulating lotteries within their respective jurisdictions.
By Ted Menmuir, SBCNEWS
On Wednesday, 8 January, Google updated its ‘country-specific policies‘ related to the advertising of gambling and games for Nigerian audiences.
Effective immediately, Google will prohibit the advertising of online gambling products and offers in Nigeria. The ban on “gambling-related products” extends to promotional items such as vouchers and bonus codes, educational materials like books and eBooks, as well as gambling-related information, including tips, odds, and handicapping.
Although specific circumstances were not detailed by Google, last November Nigeria’s gambling sector was disrupted by the Supreme Court’s decision to void the National Lottery Act 2005.
The judgment transferred the authority to regulate lotteries and games of chance from the Federal Government to the House Assemblies of the States within the Federation.
The governance of Nigeria’s gambling licences has been a contentious issue since the introduction of the Lottery Act in 2005, as states have frequently contested the rule of federal authorities.
Long-standing conflicts saw the Assembly of Lagos argue that “lottery” falls under residual matters and is not part of the exclusive legislative list reserved for the federal government, which includes domains such as defence and banking. Lagos state sought judicial clarification on which level of government has the authority to regulate lotteries.
Following the ruling, the National Lottery Act is now limited in scope, applying exclusively to Nigeria’s Federal Capital Territory (FCT) as State assemblies, including Lagos, will assume responsibility for regulating lotteries within their respective jurisdictions.
British consumer goods firm Reckitt makes long-term bet on Nigeria
British consumer goods company Reckitt intends to deepen its presence in Nigeria, confident that a turbulent economic climate that shook up the retail sector is beginning to turn the corner.
Nigeria’s economy since the end of the COVID-19 pandemic has been marked by high inflation, a sharply weakened currency, and widespread consumer anxiety. Some of the world’s best-known consumer goods giants have scaled down, sold, or shuttered operations in the country as a result, including Procter & Gamble and drinks maker Diageo, who have deprioritized Nigeria to focus on markets deemed more profitable.
But Reckitt says it has navigated the turbulence and will make Nigeria even more central to its Africa strategy. “We’ve seen a lot more economic stability in the last one year than in the years before,” Akbar Ali Shah, Reckitt’s general manager for sub-Saharan Africa, told Semafor Africa.
Central bank reforms imposed since President Bola Tinubu took office in mid-2023 yielded a market-driven foreign exchange regime that Shah said has given companies easier access to dollars from commercial banks, enabling Reckitt to repatriate profits from Nigeria in 2024 for the first time in years.
The company has “a carved out plan for the next five years” to expand its factory on the outskirts of Lagos, he said, including adding new facilities to increase product volumes and exports to other markets in Africa.
Reckitt has enjoyed a decades-long presence in Nigeria and many of its products — from its Dettol antiseptic to Strepsils lozenges — are household names that Nigerians associate with quality. Its decision to stay put in Nigeria is a handy measure with which to gauge foreign investor sentiment as well as the performance of the Tinubu administration.
By committing to Nigeria it appears Reckitt is betting that its business will remain profitable in the future. When P&G scaled down in 2023, by contrast, it said Nigeria was a “very difficult” place for a US dollar-denominated company to create value, saying its $50 million operations in the country were “really small” in the context of its $85 billion global portfolio.
As Shah tells it, Reckitt’s bet on Nigeria is anchored on reducing dependence on imported ingredients and, as a result, the constant need for dollars. Nine in 10 products it sells in Nigeria are now made in the country, he said, following a years-long process of sourcing and vetting multiple local suppliers for raw and packaged materials.
Achieving profitability also means changing from business-as-usual in an environment with a 34% inflation rate. Patrons at nightlife restaurants and bars in Lagos are trimming orders to adjust to rising prices. Consumers are opting for cheaper homecare and hygiene brands, too.
Reckitt’s response has been to resize inventory to smaller packs for the mass market, “sort of like a Nigeria-specific innovation,” Shah said. A toilet cleaner the company normally sold in plastic bottles is now available in sachets, embodying a so-called “sachetization” shift that took off with manufacturers in the country after the pandemic.
Shah does not anticipate another currency devaluation in Nigeria and said the company will not undertake steep price increases, though “gradual price increases are expected.”
Deeper roots in Nigeria will enable Reckitt to increase distribution in Africa over the next few years, the company said. In Kenya, where its only other factory in Africa is located, Reckitt has doubled manufacturing and continues exporting to other countries in East Africa. Exports from Nigeria to Ghana and Côte d’Ivoire have “generated significant forex” that has allowed the company to be “self-sufficient,” Shah said.
Consumer goods companies that continue operations in Nigeria remain vulnerable to an uncertain policy environment. The president’s $30 billion budget proposal for 2025 projects inflation will slow to 15% this year, an expectation some analysts say is optimistic.
Nigeria’s economic growth in 2025 is projected to be “sluggish and marginal” while the dollar exchange rate will “remain highly volatile,” Abuja-based policy consultancy Veriv Africa wrote in its macroeconomic outlook. High food inflation caused by insecurity in much of the country will sustain inflationary pressures on the economy, Veriv noted.
By Alexander Onukwue, SEMAFOR
Nigeria’s economy since the end of the COVID-19 pandemic has been marked by high inflation, a sharply weakened currency, and widespread consumer anxiety. Some of the world’s best-known consumer goods giants have scaled down, sold, or shuttered operations in the country as a result, including Procter & Gamble and drinks maker Diageo, who have deprioritized Nigeria to focus on markets deemed more profitable.
But Reckitt says it has navigated the turbulence and will make Nigeria even more central to its Africa strategy. “We’ve seen a lot more economic stability in the last one year than in the years before,” Akbar Ali Shah, Reckitt’s general manager for sub-Saharan Africa, told Semafor Africa.
Central bank reforms imposed since President Bola Tinubu took office in mid-2023 yielded a market-driven foreign exchange regime that Shah said has given companies easier access to dollars from commercial banks, enabling Reckitt to repatriate profits from Nigeria in 2024 for the first time in years.
The company has “a carved out plan for the next five years” to expand its factory on the outskirts of Lagos, he said, including adding new facilities to increase product volumes and exports to other markets in Africa.
Reckitt has enjoyed a decades-long presence in Nigeria and many of its products — from its Dettol antiseptic to Strepsils lozenges — are household names that Nigerians associate with quality. Its decision to stay put in Nigeria is a handy measure with which to gauge foreign investor sentiment as well as the performance of the Tinubu administration.
By committing to Nigeria it appears Reckitt is betting that its business will remain profitable in the future. When P&G scaled down in 2023, by contrast, it said Nigeria was a “very difficult” place for a US dollar-denominated company to create value, saying its $50 million operations in the country were “really small” in the context of its $85 billion global portfolio.
As Shah tells it, Reckitt’s bet on Nigeria is anchored on reducing dependence on imported ingredients and, as a result, the constant need for dollars. Nine in 10 products it sells in Nigeria are now made in the country, he said, following a years-long process of sourcing and vetting multiple local suppliers for raw and packaged materials.
Achieving profitability also means changing from business-as-usual in an environment with a 34% inflation rate. Patrons at nightlife restaurants and bars in Lagos are trimming orders to adjust to rising prices. Consumers are opting for cheaper homecare and hygiene brands, too.
Reckitt’s response has been to resize inventory to smaller packs for the mass market, “sort of like a Nigeria-specific innovation,” Shah said. A toilet cleaner the company normally sold in plastic bottles is now available in sachets, embodying a so-called “sachetization” shift that took off with manufacturers in the country after the pandemic.
Shah does not anticipate another currency devaluation in Nigeria and said the company will not undertake steep price increases, though “gradual price increases are expected.”
Deeper roots in Nigeria will enable Reckitt to increase distribution in Africa over the next few years, the company said. In Kenya, where its only other factory in Africa is located, Reckitt has doubled manufacturing and continues exporting to other countries in East Africa. Exports from Nigeria to Ghana and Côte d’Ivoire have “generated significant forex” that has allowed the company to be “self-sufficient,” Shah said.
Consumer goods companies that continue operations in Nigeria remain vulnerable to an uncertain policy environment. The president’s $30 billion budget proposal for 2025 projects inflation will slow to 15% this year, an expectation some analysts say is optimistic.
Nigeria’s economic growth in 2025 is projected to be “sluggish and marginal” while the dollar exchange rate will “remain highly volatile,” Abuja-based policy consultancy Veriv Africa wrote in its macroeconomic outlook. High food inflation caused by insecurity in much of the country will sustain inflationary pressures on the economy, Veriv noted.
Wednesday, January 8, 2025
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Innovation hubs in Nigeria's commercial capital support young entrepreneurs with guidance and seed capital. However, financial constraints remain a major hurdle for many early-stage startups trying to scale their ideas.
Dangote Refinery Retained 13% of Nigeria’s Crude Exports in 2024
The Dangote Refinery retained 13% of Nigeria’s crude oil exports in 2024, marking a significant increase from just 2% in 2023, according to Reuters. This shift helped to reduce Nigeria’s exports to Europe while boosting the country’s domestic share of oil supply.
Despite being a major net exporter of crude, Nigeria still imported 47,000 barrels per day of US oil in 2024, a move that experts find unusual for an oil-exporting country. The Dangote refinery, with a capacity of 600,000 barrels per day, played a key role in this trend, receiving multiple shipments of US West Texas Intermediate (WTI) oil due to the Nigerian National Petroleum Company’s failure to meet its supply needs.
The year also saw global crude exports decline by 2% due to weak demand and the reshuffling of trade routes. Conflicts in Ukraine and the Middle East, along with sanctions on Russian and Iranian oil, caused significant shifts in global oil supply chains, influencing both exports and imports.
As the global oil market faces continued uncertainty, particularly in 2025, experts predict a rise in demand from India, while some countries are increasingly turning to gas and renewable energy sources.
Despite being a major net exporter of crude, Nigeria still imported 47,000 barrels per day of US oil in 2024, a move that experts find unusual for an oil-exporting country. The Dangote refinery, with a capacity of 600,000 barrels per day, played a key role in this trend, receiving multiple shipments of US West Texas Intermediate (WTI) oil due to the Nigerian National Petroleum Company’s failure to meet its supply needs.
The year also saw global crude exports decline by 2% due to weak demand and the reshuffling of trade routes. Conflicts in Ukraine and the Middle East, along with sanctions on Russian and Iranian oil, caused significant shifts in global oil supply chains, influencing both exports and imports.
As the global oil market faces continued uncertainty, particularly in 2025, experts predict a rise in demand from India, while some countries are increasingly turning to gas and renewable energy sources.
By Abdullahi Jimoh, News Central
Related story: Nigeria's richest man Aliko Dangote takes on the 'oil mafia'
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