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COVID-19 Palliatives: Atedo Peterside Urges Rich Nigerians to Copy Zinox Solution to Feed the Poor
Rich and influential Nigerians as well as state and local governments and Non-Governmental Organizations (NGO) have been urged to borrow a leaf from the strategy deployed by the Zinox Group and Konga to reach and deliver much-needed succour to poor and needy families across Nigeria as the lockdown occasioned by the COVID-19 pandemic bites harder.
This was the view of Atedo Peterside, founder, Stanbic Bank.
Peterside, who doubles as the Chairman, Anap Foundation COVID-19 Think-Tank, made this suggestion when he spoke as a guest on a televised interview on Africa Independent Television (AIT) on Wednesday.
The Rivers-born entrepreneur, who submitted that the country needed to improve some of the approaches it was deploying in fighting the pandemic, affirmed that there are three pillars in the COVID-19 fight: medical, governance and communication.
However, he disclosed that safety nets, deemed as one of the most important seven priority items identified by the Anap Foundation Think-Tank under medical, was an area that a lot more needed to be done.
‘‘Actually, the number of poor people in Nigeria is estimated at 80 million by NBS out of 180 million people.
“If you want the estimated 80 million poor Nigerians to remain in one place in view of the lockdown, you have to have a plan for them.
“I am not one to waste my time blaming government. If you do the numbers, we have an estimated 80 million classified and confirmed as being poor, add the next 20.
“I assume that the next 20 million can feed themselves because they are not poor.
“It then means that the richest 80 million can feed themselves and can probably also contribute or help to feed the bottom 80 million.
‘‘Even if one person in the top 80 million feeds at least one person in the bottom 80, we have solved the problem and that is without government intervention.
“A member of the Anap Foundation COVID-19 Think-Tank, Mr. Leo Stan Ekeh, owner of Zinox Group and Konga is going out to feed 7000 families every day for 14 days.
“This is to show you that the rich people can help the government solve the problem. So, we want more examples like Leo Stan Ekeh,’’ he counselled.
Continuing, the renowned investment banker said: ‘‘What we don’t want is rich people constantly being distracted. Instead of coming to join people like Leo Stan Ekeh to feed the poor, suddenly somebody dangles that there is some money at Central Bank, the same rich people will leave the task of feeding the poor, get distracted and begin to chase or apply for loans for the future.
“Can we just leave all that and focus first on the problem of the poor? Believe me, if we don’t solve that problem, the poor will infect the rich and we will all die.
‘‘The total number of poor people in Nigeria, using official NBS estimates, is 80 million.
“The 2.6m households being catered for by the Federal Government does not cover the 80 million people.
“So, if the Federal Government is trying to look after 2.6m households out of them, I am saying the richer Nigerians, state governments, LGAs, NGOs must now join to look after all of the 80 million poor people.
‘‘I am not saying Federal Government. Leo Stan Ekeh does not work for the Federal Government.
“President Buhari did not stop the rich people from trying to feed the poor. Let the rich people get up. Every state in this Federation has very rich people,’’ he declared.
Also toeing the line of thought espoused by Peterside, Dr.Mutairu Ademu, an economist, commended the strategy deployed by the Zinox Group in feeding the poor through its staff across the country; even as he noted that such gestures ought to be rewarded by the government.
‘‘It is a very ingenious strategy, one that is guaranteed to reach the poor and actual needy people.
“Well, I am not surprised because I have followed the innovativeness of this Group for nearly 20 years.
“This excellent strategy solves the problem of politics and tribe. This is because executing such initiatives through politicians will bring an unavoidable level of partisanship into it.
“Some politicians will use the palliatives to reward their loyal supporters and party stalwarts, thereby leaving people from other parties in the dust.
“In states where a particular political party is in charge, people from other parties will not be catered for; forgetting that those people from other political parties are also needy Nigerians and citizens of the state.
“So, this approach by the Zinox Group solves that. Also, with respect to the issue of tribe which will manifest in some people getting a larger share than others, the Zinox Group strategy of using staff to distribute the palliatives also resolves this.
‘‘This is why I urge other Nigerian corporate billionaires who preferred to rush to donate money to the government to consider borrowing a leaf from the approach of the Zinox Group and Konga which is guaranteed to reach the last mile.
“After all, there is no Nigerian worker that holds down full employment in two organizations at the same time.
“So, imagine other Nigerian billionaires and corporate organizations including the banks using their staff in various branches across Nigeria to feed the poor around them. We would have achieved so much in reaching the poorest of the poor.
‘‘All it costs the government in encouraging or rewarding this intervention would be some tax rebates or holidays which will not cost the government much.
“In fact, I suggest the government consult people like Leo Stan Ekeh more, especially on important public policy and economic-related issues.
“In fact, rather than being hostile to these entrepreneurs and frustrating them with double taxation, the government should rely on them more for necessary assistance; especially considering how they rallied round the government in supporting needy Nigerians in this emergency,’’ he said.
Meanwhile, the distribution of the palliatives by staff of the Zinox Group and Konga has kicked off, with beneficiaries already starting to receive the essential items being donated across the country.
This was confirmed by Gideon Ayogu, group head, Corporate Communications, Zinox Group.
According to him, ‘‘Distribution of the essential food items – which include medium bags of rice, tomato paste and cooking oil – has commenced.
“We were able to leverage on the delivery capabilities of Konga to get the items across to staff in various parts of the country.
“By the end of this week, we expect the overwhelming majority of the beneficiaries to have received their items.
“Also, evidence of these donations by our staff will be rigorously verified by the audit team created especially for this purpose in order to ensure that the intended beneficiaries actually benefit,’’ he revealed.
Transcorp Power Plc, also known as Transcorp Power, reported N67.86 billion in revenue for the quarter that concluded on March 31, 2024, on Friday.
Peter Ikenga
The amount represents a notable 223 percent increase from the N21.04 billion reported in the first quarter of 2023.
This was disclosed in the electricity generating company’s unaudited financial report, which was made available in Lagos, for the period ending March 31.
Transcorp Power reported that its Profit Before Tax (PBT) increased to N28.77 billion in the first quarter of 2024 from N3.29 billion in the same period the previous year, a 775 percent increase.
In the first quarter of 2024, the company’s Profit After Tax (PAT) increased by 665% year over year to N20.1 billion, from N2.6 billion in the same period the previous year.
The total assets of the electricity-generating subsidiary increased as well, rising from N223.3 billion in the same period of 2023 to N276.2 billion in the first quarter of 2024.
Mr. Evans Okpogoro, chief fnancial officer, Transcorp Power, commented on the financial highlights, stating that the company’s first quarter results for this year showed a cost to income ratio of 70% and a gross margin of 51%.
According to Okpogoro, the company also reported a gross margin of 37%, an expense-to-income ratio of 87%, a net profit margin of 13%, and a net profit margin of 30% as of the first quarter of 2023.
He stated that this highlighted the remarkable operational efficiency gains of the company.
According to him, Transcorp Power has continued to grow its revenue aggressively and consistently over the last five years.
“We expect that by the end of the year 2024, we will see a similar growth trajectory recorded between 2022 and 2023 financial year.
Also, Mr Peter Ikenga, managing director/chief executive officer (CEO), Transcorp Power, expressed the company’s delight to report further robust financial performance, despite sectoral challenges such as gas supply issues and macroeconomic challenges.
Ikenga said the ability of the electricity subsidiary to sustain growth amidst the environment shows the resilience of its business model and the efficient execution of its strategic initiatives.
As part of the Transcorp Group’s implementation of its integrated power strategy, the managing director went on to say that the company’s strong performance is evidence of its strategic focus and effective execution.
Strategically investing in the power, hospitality, and energy sectors, Transcorp Power Plc is an electricity-generating subsidiary of Transnational Corporation Plc (Transcorp Group), one of Africa’s top listed companies.
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.
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