News
Cars45, Kia Trade Over 300 Vehicles, Unlock New Value Opportunities in Nigeria’s Automobile Industry
Riding on its partnership with KIA Motors, Nigeria’s leading online marketplace to buy, sell or swap a car, Cars45 has carried out over 300 transactions on KIA vehicles since the partnership was announced in January 2018.
This disclosure was made in Lagos where both companies announced that they were expanding the partnership to accommodate more car brands which enables consumers to have more choices when they want to buy, sell or swap their cars through Cars45 at any KIA location across the country.
Speaking on the partnership Jide Adamolekun, Chief Financial Officer, Cars45, noted that the partnership has improved car ownership in Nigeria.
“We launched this partnership January last year and at the end of the year, we reassessed how far we have gone and examined the opportunities that we have created in the Nigerian market.
Cars 45 carried out over 300 transactions via this relationship last year and we have seen the future where by making more brands available to consumers we will help unlock more value in the nation’s automotive space”, Adamolekun said.
He added that “we are proud that we have enabled consumers on their journey irrespective of whatever side of the economic spectrum they fall.
“We hope to move with KIA beyond our current operations in Lagos, Port Harcourt and Abuja to new cities and territories across the country making cars affordable to the Nigerian populace.”
Speaking on the value of the partnership, Olawale Jimoh, Marketing Manager, KIA averred that it has been a very wonderful and rewarding experience which has seen both parties record so many gains.
“We have seen the sale of used KIA cars rise as Cars45’s structured arrangement of buying and selling used cars has brought transparency and credibility, taking away the associated stress with selling locally used vehicles,” Jimoh stated.
Furthermore, he said, “it is against the backdrop of the successes recorded that we are now expanding this relationship to a more robust arrangement such that regardless of the car brand that you are driving, you can experience the rich range of value offerings provided by Cars45.”
Vice President, Trading, Cars45, Mohammed Iyamu expressed his happiness that the progress made on this journey has been impressive by all standards.
“We did about three hundred cars last year, we are looking to triple that volume, go to other cities and grow in leaps and bounds this year.
“A missing link in Nigeria’s automotive industry is financing. If you look at a market like say South Africa, 70 percent of the cars on the road are financed one way or another.
“Cars45’s trade-in/ swap scheme has served as a means of financing for many and so we would be looking at adding more value to this partnership end to end”.
On next steps, Iyamu said that, “we are looking to provide new services to our customers that include repairs and workshop services, we are also looking to partner with other service providers in the automobile industry especially those who deal in accessories and also partner with financial institutions to provide financing for certified Cars45 car purchases.”
The event also provided an opportunity for Cars45 to showcase the achievements of its sister brand, Carsbazr which provides a stress-free experience for Nigerians to buy verified locally used cars that they can trust at the best prices.
According to John Egwu, Head of Operations, Carsbazr, “affordability is at the heart of what we do.
“Whatever car you are looking to buy at your individual price point, we’ve got you covered.
“All our cars have a standard report and there are no hidden details about any cars.
“Our weekly live auctions, which have become a game changer within the automobile community in Nigeria, also provide a great opportunity where people are able to go home with vehicles that they can afford in a convivial and fun environment.”
Nigerian Education Loan Fund (NELFUND) has said that Nigerian students will need to present their Unified Tertiary Matriculation Examination registration number (UTME); National Identification Number (NIN); and Bank Verification Number (BVN) to access student loans.
Mr Akintunde Sawyerr, managing director of NELFUND, assured that the body would ensure that those he called ‘ghost students’ would not have access to the soon-to-be-launched scheme.
The MD noted that NELFUND has put processes in place to ensure that all applicants and beneficiaries are traceable to prevent the loan from turning into a sort of national cake.
“We are using technology to run the system. The process of application is online and we are limiting human contact as much as possible. Once you have a Bank Verification Number, BVN and National Identification Number, NIN, which are parts of the requirements, we will have access to your data and all your accounts. This will also help us to know if you are qualified or not,” he explained.
He explained further that those who are already in school can apply for the loan at any level of their study, but must be at the beginning of each session. They would also have to provide their admission and matriculation details in addition to BVN and NIN.
According to the NELFUND boss, about 1.2 million Nigerian students in tertiary institutions and government-recognized skill acquisition centres would be among the first batch of beneficiaries. The number may increase as time goes on.
The programme, he noted, will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS), which will amount to N194 billion if the agency meets its projection.
He explained that the loan would be paid in two segments. The first, he said, is the chargeable school fees which would be paid directly to the institutions while stipend would be paid into individual student’s account for day-to-day upkeep.
Mr. Sawyerr stated that the amount individual applicants will access will vary because of the course of study, school fees payable and geographical location of the institutions among others.
On the method of payback, he said, “You don’t start paying back the loan until two years after your National Youth Service Corps, NYSC Scheme and that is, if you have secured a job or business. A beneficiary can defer repayment if he has not secured a job, but if after due diligence, he defaulted, then he becomes a criminal and we will work with every agency that can help us get the money back, for example, EFCC, ICPC etc.”
Sun International Limited, run by Anthony Leeming, South African entrepreneur, has agreed to sell its Nigerian interests to Rutam Finance Company Limited (RFC) for roughly $14.4 million.
The move is part of Sun International’s strategy to consolidate operations and focus on key markets. Sun International joined the Nigerian market in 2009, but has struggled in recent years due to a challenging operating climate.
This divestiture is consistent with the company’s strategic objectives and represents a shift in portfolio management.
Sun International, will sell a 43.3 percent ownership investment in Tourist Company of Nigeria PLC (TCN), which manages Lagos’ Federal Palace Hotel, to RFC for $1.875 million.
In addition, the group would pay off its whole $12.675 million credit to RFC, effectively exiting the Nigerian market. The corporation also intends to sell its remaining 6% ownership in TCN in due course.
The transaction, subject to customary closing conditions including as regulatory approvals, is estimated to create a cash inflow of about $14.41 million for Sun International.
These funds will be utilized to reduce debt.
Following the completion of the acquisition, TCN will no longer be included in Sun International’s financial statements.
This will reduce group debt by about $41.82 million, excluding IFRS 16 lease liabilities.
The closing is scheduled for no later than May 28, 2024, provided that all usual closing conditions are met. The Nigerian Competition Authority, the Securities and Exchange Commission, and the Nigerian Stock Exchange have all provided key clearances.
Sun International, founded in 1968 by the late Sol Kerzner, has grown into a renowned gaming and resort company under Leeming’s leadership.
In fiscal 2023, the company’s revenue increased by 7% to $646.14 million, while headline earnings increased by 86 percent to $55.35 million.
This demonstrates Sun International’s resiliency and strategic direction. Sun International’s pullout from Nigeria demonstrates the company’s dedication to streamlining its portfolio and pursuing growth possibilities in key areas.
With a rich history and a focus on the future, this transaction demonstrates the company’s commitment to create wealth for shareholders and stakeholders while also strengthening its position in the gaming and hospitality industries.
Sam Darwish, a US-Nigerian telecom entrepreneur, has experienced a huge financial setback in his holding in IHS Holdings following a recent drop in the shares of the top telecom infrastructure company on the New York Stock Exchange (NYSE).
Sam Darwish
According to data, Sam Darwish’s investment in IHS Holdings has lost $6 million in market value during the last 13 days. This drop reflects increasing selling pressure among NYSE investors.
From March 12 to 30, Darwish’s investment in IHS Holdings increased from $35.17 million to $49.27 million, resulting in a $14 million gain.
Darwish founded IHS Holdings in 2001, and it has since grown to become the largest telecom infrastructure business in Africa, Europe, Latin America, and the Middle East.
It is renowned for its huge tower count and is the world’s third-largest independent international tower firm.
In the last 13 days, IHS Holdings shares on the NYSE have dropped by 11.72 percent, from $3.67 on April 3 to $3.24 at the time of writing.
As a result, the company’s market capitalization has dropped below $1.1 billion, causing significant losses for stockholders.
As chairman and CEO of IHS Holdings, Sam Darwish holds a critical position in African telecom.
With a strong 4.17 percent ownership holding, equivalent to 13,958,158 ordinary shares, he is a key participant in the global telecom infrastructure business.
The recent double-digit loss in IHS Holdings shares has resulted in a $6 million decrease in the market value of Darwish’s shareholding in the top telecom infrastructure company. His shareholding has decreased from $51.23 million on April 3 to $45.22 million.
Despite this defeat, Darwish remains an important figure in the worldwide telecom business.
IHS Holdings’ extensive tower network and smart acquisitions have secured its position as a major participant in the global telecom infrastructure sector.
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