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Diageo Suspends Plan to Lift Guinness Nigeria Stake

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Diageo has scrapped plans to lift its stake in Guinness Nigeria due to tough market conditions there, the drinks company said on Wednesday.

The decision by Diageo, maker of Johnnie Walker Scotch and Smirnoff vodka, is the latest blow for Nigeria’s economy, which is headed for its first full-year recession in 25 years following a plunge in oil prices.

Diageo last year said it planned to buy another 15.7 percent of Guinness Nigeria for up to 41.37 billion naira, raising its stake to 70 percent. At last year’s exchange rates, that would have been worth about $208 million.

Diageo said on Wednesday it would not proceed with the offer, choosing instead to focus its resources on continuing to support Guinness Nigeria. Last month it gave the unit a $95 million loan to help it cope with dollar shortages.

Limited access to foreign currency has contributed to other businesses pulling back from Nigeria, including airlines Iberia and United.

Yet British company PZ Cussons said in July liquidity had begun to improve following Nigeria’s decision in June to lift the currency peg, which led to a sharp devaluation of the naira.

Guinness Nigeria shares were flat at 93 naira on the Lagos bourse on Wednesday. The shares are down 19 percent this year.

The brewer reported its first full-year loss in 30 years for fiscal 2016, hurt by the ongoing recession in Africa’s largest economy and the currency crisis brought on by the impact of low oil prices. Nigeria’s economy is likely to contract by 1.3 percent this year, the head of the government’s statistics office said on Wednesday.

“Diageo has confirmed that it maintains a positive outlook for Nigeria in the long term and that it expects the market to continue to grow,” Guinness Nigeria said in a statement. “Nigeria remains a key strategic market for Diageo.”

A source familiar with the company’s thinking said a future rights issue could be another potential way for to recapitalise the business.

Diageo is predominantly a spirits company, but says that owning Guinness beer helps its footprint in Africa, where a growing number of middle class consumers are drinking more alcohol.


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Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria

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Legit.ng recently joined forces with the Shade of Life Foundation to become a voice of autism, and drive advocacy for improved media support during Autism Awareness Month.

Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria

Participants at the event

Conversations around media support exploration was led by Joseph Omotayo, head of Department for Human Interest Stories at Legit.ng, and Dr. Eziafakaku Nwokolo, founder and CEO of the Shade of Life Foundation,

This partnership is a response to the concerns raised by organizations like the Shade of Life Foundation about the level of support received from the media in discussing autism as a disability.

While other disabilities may receive attention, autism, with its critical developmental implications often lacks adequate representation in mainstream media.

Recognizing the importance of addressing these concerns, Legit.ng took proactive steps by integrating itself into the essence of autism awareness.

It facilitated a one-hour workshop with Dr. Nwokolo, the founder of the foundation, to deepen our understanding of autism, its various spectrums, and the language boundaries associated with it.

Other steps we took in advocating autism awareness in the media, can be seen in our attached press release.

Legit.ng believes that by amplifying the voices of autism and advocating for better media representation, we can contribute to creating a more inclusive and accepting society for all.

 

 

 

 

 

 

 

 

 


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As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply

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While 85 per cent of Nigeria is in darkness, Tanzania, an African country has shut down five hydroelectric stations in a bid to reduce excess electricity in the national grid.

As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply

Kassim Majaliwa, prime minister, Tanzania, has said the main plant, Mwalimu Nyerere Hydroelectric Station, alone generated enough electricity to power major cities, including Dar es Salaam, the country’s commercial hub.

It is the first time Tanzania, which suffers chronic power shortages, has closed hydroelectric stations due to excess production.

“We have turned off all these stations because the demand is low and the electricity production is too much, we have no allocation now,” an official from state-run power company, Tanesco, said.

The 2,115MW Julius Nyerere Hydropower Dam is said to be almost filled with water following heavy rains that started early this year.

Meanwhile, while the country has an installed capacity of 1,938MW and the grid installed capacity of 1,899MW, Nigeria which has an installed capacity of 13,000MW is struggling to electrify 85 per cent of its electricity consumers.


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President Tinubu Appoints Jim Ovia as Student Loan Fund Chairman

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President Bola Tinubu has approved the appointment of Jim Ovia, renowned banker and businessman, as the Chairman, Board of the Nigerian Education Loan Fund.

Jim Ovia

Jim Ovia

Ovia’s appointment is contained in a State House statement titled, ‘President Tinubu appoints Jim Ovia as Chairman of the Nigerian Education Loan Fund,’ and issued on Friday by Ajuri Ngelale, special adviser to the President, Media & Publicity.

The statement noted that “Ovia is the founder of one of Nigeria’s leading banks and a respected business leader, with a surfeit of efforts and benefaction towards nurturing and empowering young Nigerians.

“He is an alumnus of Harvard Business School and holds a Master’s in Business Administration from the University of Louisiana.”

The National Student Loan Programme is a pivotal intervention that seeks to guarantee sustainable higher education and functional skill development for all Nigerian students and youths.

The Nigerian Education Loan Fund, the implementing institution of this innovation, demands excellence and Nigerians of the finest professional ilk to guide and manage.

“The President believes Mr. Ovia will bring his immense wealth of experience and professional stature to this role to advance the all-important vision of ensuring that no Nigerian student suffers a capricious end to their pursuit of higher education over a lack of funds,” the statement partly read.

Ovia’s appointment will also ensure “that Nigerian youths, irrespective of who they are, have access to higher education and skills that will make them productive members of society and core contributors to the knowledge-based global economy of this century.”


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