Nigeria

Business

Chapel Hill advises Aradel on Nigerian exchange listing

Investment firm, Chapel Hill Denham, says it acts as an official adviser to energy company, Aradel Holdings Plc, as Aradel is set to debut on the Nigerian Exchange with a listing of 4.34 billion ordinary shares, valued at N0.50 each, on October 14, 2024. In a statement, Aradel Holdings disclosed its shares will be listed at N702.69 per share, making it the largest listing by introduction in the history of the NGX. Chapel Hill Denham said it will position Aradel among the top players in Nigeria’s capital market, qualifying the company for entry into the NGX 30 Index and the NGX Oil and Gas Index upon listing. The Managing Director and Chief Executive Officer of Aradel Holdings Plc, Adegbite Falade, described the event as a historic milestone.

Nigerian Breweries extends N599b rights issue

Nigerian Breweries (NB) Plc has extended the acceptance period for its N599.1 billion rights issue to Friday, October 18, 2024. The extension followed regulatory approval by the Securities and Exchange Commission (SEC) after the initial acceptance period for the right issue closed on October 11, 2024. This was contained in a notice of extension of the acceptance period by NB signed by its Legal Director and Company Secretary, Uaboi Agbebaku. NB is offering its shareholders 22.61 billion ordinary shares of 50 kobo each at N26.50 per share. The offer is open to all existing shareholders, giving them the opportunity to increase their shares in the company by 11 new shares for every five shares held at the close of business on July 12, 2024.

Ecobank issues $400m bond at 10.125% interest rate

Ecobank Transnational Incorporated (ETI) has announced the successful issuance of its $400 million notes at a coupon rate of 10.125 per cent, due October 15, 2029. The interest on the notes will be paid semi-annually, with the first payment scheduled for April 15, 2025 and subsequent payments on April 15 and October 15 each year. The proceeds from this bond issuance will be allocated for general corporate purposes, including the refinancing of the $350 million Senior Bridge-to-Bond Loan Facility that was established in March 2024. This marks ETI’s third venture into the international bond markets and stands as the first public Eurobond issuance by a financial institution in Sub-Saharan Africa since 2021

Economy

FG introduces tax payment in instalments

The Federal Government has proposed introducing a tax payment option that enables individuals to pay their taxes in instalments. It introduced this in the Nigeria Tax Bill 2024, recently submitted to the National Assembly for consideration and approval. Our correspondent obtained a copy of the draft on Sunday. This means that each person now has the flexibility to fulfil their tax obligations either by making a single lump sum payment or by spreading the payments out over time and settling before the designated due date for filing. The government also proposed the creation of a special account by the Accountant-General of the Federation for tax refunds.

‘NASS considering raising VAT to 10% by 2025'

The National Assembly is considering a bill proposing an increase in the Value-Added Tax, VAT, from 7.5 percent to 10 percent. In the executive bill seen by TheCable, yesterday, the National Assembly intends raising the tax rate to 10 percent by 2025. The legislature also intends to increase the VAT to 12.5 percent by 2026 through 2029, according to the document. Recall that on May 8, 2024, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, had said the VAT rate needs to be increased. Meanwhile, the bill also proposes a reduction in the corporate income tax (CIT) to 27.5 percent by 2025 — down from 30 percent — and a further cut to 25 percent by 2026

Rising energy costs push manufacturers to brink of collapse

The manufacturing sector in Nigeria is facing existential threats with the escalating costs of energy, amongst other binding constraints, driving up production and logistics costs thus putting the sector on the brink of collapse. Manufacturers overtime have raised the alarm over the damaging impact of the rising cost of energy, which has seen pump price of petrol risen by about 430 percent and electricity tariff up by 212 percent for ‘Band A’ consumers over the past one year. On April 3, NERC approved an increase in electricity tariff for customers under the Band A classification.

Politics

PDP crisis: Damagum camp, anti-Wike govs may clash today

The 13 state governors elected on the platform of the Peoples Democratic Party are headed for a possible showdown today (Monday) as they meet to discuss the party’s internal crisis, which took a deeper turn on Friday following the emergence of a factional PDP National Chairman, Alhaji Yayari Mohammed. Friday’s development marked a new twist in the clamour to remove the PDP acting National Chairman, Umar Damagum, who is an ally of the Minister of the Federal Capital Territory, Nyesom Wike. The move to remove Damagum has split the PDP governors, with the Chairman of the PDP Governors’ Forum and Bauchi State Governor, Bala Mohammed, leading six other governors pushing for Damagum’s ouster.

Ghana

Business

Chinese firm buys Newmont’s Akyem Mine for $1.0bn

Chinese firm Zijin Mining Group Co. has bought Newmont’s Akyem gold project in Ghana for a $1 billion in cash. The purchase from the US-based corporation will allow China’s largest listed metals producer to mine high-grade ore bodies from one of the world’s major gold belts, Zijin said in a filing to the Hong Kong Stock Exchange on Wednesday. Newmont said the sale is part of its ongoing programme to divest non-core assets as the company makes a strategic shift to focus on its tier-one assets

Economy

Moody’s upgrades Ghana’s rating, signals positive outlook

Global credit ratings agency Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings, raising them to ‘Caa2’ from previous levels of ‘Caa3’ and ‘Ca.’ This marks a significant improvement for Ghana, driven by the country’s extensive debt restructuring, which has eased the government’s financial pressures. Moody’s also shifted Ghana’s outlook from ‘stable’ to ‘positive,’ reflecting the possibility of further reductions in liquidity risks. The ‘positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an IMF programme,’ Moody’s said in a statement on Friday. This comes as Ghana continues its fiscal consolidation efforts, backed by a $3bn loan programme from the IMF.

Politics

NDC unveils 'comprehensive' strategy to create 1.7m jobs, calls out NPP on mounting unemployment crisis

The National Democratic Congress on Monday, October 14, 2024, announced what it calls a comprehensive employment and jobs creation strategy for a John Mahama presidency. The NDC says it will create 1.7 million jobs between 2025 and 2029. This will absorb the expected 300 thousand yearly entrants into the workforce and reduce current unemployment levels by 120,000 of each year. The party’s Employment and Jobs Creation committee announced at a briefing in Accra

Kenya

Business

Tourism board banks on foreign missions to increase visitors

The Kenya Tourism Board (KTB) is leveraging Kenyan missions abroad to anchor its diaspora tourism campaign in a bid to increase tourism arrivals into the country. Dubbed ‘Ziara Kenya: One Diaspora, One Tourist’, the campaign seeks to harness the over 3 million Kenyans in the diaspora to help market their motherland through their networks within the host countries. The initiative is expected to boost tourism arrivals currently at 1.9 million to its target of 5 million by 2027, reinforcing Kenya’s position as a preferred travel destination. In a meeting held at a Nairobi hotel bringing together key heads of departments from KTB and the Ministry of Foreign Affairs seeking to bolster Kenya’s tourism presence abroad, KTB CEO June Chepkemei said Kenyan missions abroad would play a crucial role in augmenting the campaign. “Kenya has 66 missions abroad which represent our country. This existing infrastructure provides an ideal platform to position Kenya as the most attractive destination for international travellers,” said the CEO.

Economy

Political tension, ballooning debt threat to Kenya’s growth - report

Kenya’s economy is projected to face challenges and it might be hard for people and businesses to see steady growth or stability in the near future, according to new findings by Pan-African market insights firm, Stears. The firm says that the political uncertainty in Kenya, driven by the push to impeach Vice President Rigathi Gachagua and dissatisfaction with President Ruto’s handling of police brutality during the July protests, is significantly influencing the economic landscape. The report explains that recent actions are happening because of an unfair policy situation, which is causing negative investor sentiment. Kenya’s credit rating has been downgraded to “junk,” meaning it’s seen as a risky place to invest. “Overall, Kenya’s economic landscape will remain complex in the near term, especially as we anticipate the IMF’s funding decision amid unmet loan conditions,” said Stears in its monthly update.

Politics

In courts: Application challenging DP impeachment trial at Senate to be heard

As members of the Senate prepare for the trial of Deputy President Rigathi Gachagua, the second in command has launched a fresh bid to have his impeachment trial halted. This application is to be heard today before Justice Chacha Mwita. Gachagua claims Members of Parliament were intimidated and were under undue influence prior to and during the hearing of his impeachment motion. He says the National Assembly prosecuted proceedings on the basis that he had offended the President rather than the Constitution and the law. "The object of the impeachment exercise appears to have been to please President William Ruto rather than examine fidelity to the constitution," he asserts