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Nigeria Sinks Below Zimbabwe Stock Valuations
Nigeria’s Islamist insurgency, tumbling oil revenue and a looming presidential election have turned the nation’s stocks into Africa’s biggest laggards, according to Bloomberg.
The country’s main equity index lost 25 percent this quarter after tumbling to a 22-month low, the continent’s largest retreat.
The Nigerian measure dropped to 8.1 times estimated earnings Dec. 11 in Lagos, falling below Zimbabwe for the first time since Bloomberg started tracking the southern African nation in 2010.
Bloomberg reported that tension in Africa’s largest economy is escalating before polls in February pitting southern Christian President Goodluck Jonathan against former military ruler Muhammadu Buhari, a northern Muslim, with attacks by the Islamist militant group Boko Haram killing at least 450 people in November.
Crude’s plunge below $65 a barrel has deepened the rout as Nigeria needs a price of $126 to balance its budget, more than any other major developing-nation producer bar Venezuela and Bahrain, according to Deutsche Bank AG.
“The government situation is somewhat chaotic,” Mark Mobius, who oversees about $40 billion as the executive chairman of Templeton Emerging Markets Group, said by phone from Bangkok on Dec. 9.
“You’re going to get a lot of hesitation on the part of investors” until after the polls, he said.
The Nigerian Stock Exchange All Share Index decreased 3.5 percent to 31,062.03, the lowest level since January 2013. The gauge has dropped 28 percent from this year’s high in July.
It is the fourth-biggest fall among 93 stock gauges tracked by Bloomberg worldwide this quarter through Dec. 11.
The last time Nigeria held general elections in 2011, stocks declined 1 percent in the six months before the April poll to end the year 16 percent down.
Jonathan’s victory triggered riots across the north that killed more than 800 people and led to the burning of churches, mosques and homes and was challenged by the runner-up.
Investors are more concerned this year as increased attacks by Boko Haram “make these elections particularly fraught,”
Nnamdi Obasi, a senior analyst for West Africa at Brussels-based International Crisis Group, a conflict resolution organization, said in a report last month.
Consumer and energy shares have been among the biggest drags on the benchmark index. Dangote Cement Plc, controlled by the continent’s richest man, Aliko Dangote, has dropped 28 percent this year.
The stock makes up about a quarter of the gauge’s $62 billion market capitalization. FBN Holdings Plc, owner of the country’s biggest lender, fell 47 percent amid higher capital requirements.
The estimated price-to-earnings ratio for Nigeria is the lowest of nine of the largest markets in sub-Saharan Africa and compares with 8.14 times for the main measure of the stock exchange in Zimbabwe, where a decade-long recession that began in 2000 reduced the size of the economy by half.
Kenya’s Nairobi All Share Index is valued at 11.4, while Russia’s Micex Index is at 4.6 times estimated earnings as the economy teeters on recession amid international sanctions against the world’s biggest energy exporter. Brazil’s Ibovespa Index is valued at 10.3, while the MSCI Frontier Markets Index measures 9.1.
The selloff in some consumer stocks and banks has been extreme even after accounting for a more difficult business environment amid lower oil prices, Joseph Rohm, who helps manage about $2 billion in Africa for Investec Asset Management, said by phone from Cape Town Dec. 10. “It’s a better environment now for stock-pickers with a long-term horizon.”
Nigerian securities will rebound in 2015 if the political environment improves, Mobius said. The $1.8 billion Templeton Frontier Markets Fund hasn’t reduced its exposure to Nigeria during the recent downturn, he said.
The latest data from Nigeria’s stock exchange show foreign investors have been net sellers of the nation’s shares and bonds on the whole. They pulled $273 million from the country in October, the most since February when central bank Governor Lamido Sanusi was suspended.
Oliver Bell, a money manager at T. Rowe Price Group Inc. in London, said last month that the firm’s Africa and Middle East fund has cut holdings of Nigerian shares to the lowest level since the fund’s inception in 2007, even as he predicts the country’s long-term investment case will stay intact.
“We’re not seeing this as a buying opportunity at all,” David Wickham, director of frontier and emerging-market equity at HSBC Global Asset Management, which has $850 million in frontier market shares, said by phone from London Dec. 10.
“It’s a pretty challenging period. Most investors, unless they’re extremely contrarian, will sit back and wait.”
While Jonathan will probably win the elections, he is weakened by Boko Haram’s Islamist attacks along with his administration’s failure to curtail corruption and by senior party member defections to the opposition, Sebastian Spio- Garbrah, managing director at New York-based consultancy DaMina Advisors LLP, said last month.
Nigeria’s economy, which relies on oil for more than 90 percent of exports and 70 percent of government revenue, is getting buffeted by Brent crude’s more than 40 percent plunge since June to the lowest level in more than five years.
The finance ministry, which had projected 6.35 percent economic growth in 2015, may reduce that forecast by about one percentage point next week, spokesman Paul Nwabuikwu said by phone Dec. 10 from the capital, Abuja.
The central bank raised interest rates to a record 13 percent last month in a bid to stem capital outflows and defend the local currency, which dropped to a record low against the dollar on Dec. 2 and is heading for its biggest annual decline since 2008. The naira weakened 0.3 percent to 181.82 per dollar as of 9:50 a.m. in Lagos, extending losses this quarter to 9.9 percent.
“In the next 30 years, it’s a fantastic place to be,” said HSBC’s Wickham. “Right now, it’s a different story.”
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Ina Alogwu Joins 9mobile as Chief Digital and Innovation Officer
9mobile has appointed Ina Alogwu as its new Chief Digital and Innovation Officer (CDIO), marking another significant step in the company’s business transformation agenda.
In his new role, Alogwu will be responsible for guiding the development and execution of 9mobile’s long-term strategy across the entire digital and technology ecosystem, including new technologies, digital platforms, and business models while nurturing a culture of innovation within the organization.
His appointment demonstrates 9mobile’s firm commitment to driving digital transformation and enhancing its innovative capabilities to better serve customers and stay ahead of market trends.
Alogwu is a visionary leader and seasoned strategist with nearly two decades of transformative experience in digital commerce, mobile payments, and technology ecosystems, making him an invaluable addition to 9mobile’s leadership team.
He has a proven ability to identify emerging trends and harness them to develop and execute groundbreaking digital products and strategies. His expertise spans product innovation, data strategy implementation, and agile business transformations, all of which have delivered significant and sustainable results across diverse industries and regions.
He joins 9mobile from ARM Holding Company, Nigeria, where he was the Group Director, Digital Transformation and spearheaded innovation initiatives, implemented a robust data strategy, and managed venture-building programmes that supported numerous African tech startups.
His very distinguished and diverse professional journey also includes an impactful tenure at Interswitch Limited, where he held roles such as Group Head, Verve Digital, and Group Head, Payment Processing. In these roles, he led the creation of groundbreaking payment platforms and digital solutions across West and East Africa.
Earlier in his career, Alogwu held roles at the Economic and Financial Crimes Commission (EFCC) as a Training Specialist and worked at Integrated Business Strategies as a Business Analyst.
Speaking about the appointment, 9mobile CEO Obafemi Banigbe expressed confidence in Alogwu’s ability to lead the company’s innovation efforts, saying, “Alogwu’s broad professional background makes him the perfect fit for our innovative and business transformation journey as he joins a team of recently appointed senior business leaders to drive this process and the next phase of our growth.
“His role is crucial for navigating today’s fast-paced digital environment. And he has been entrusted to lead the charge in harnessing new technologies, driving digital transformation, and ensuring the company remains adaptable to change, which is integral to fostering innovation and positioning 9mobile as a forward-thinking leader in its industry.”
The New CDIO said, “I’m delighted to join 9mobile and collaborate with the CEO and the leadership team on the innovative initiatives already in progress.
As we navigate the rapidly evolving digital landscape, I’m eager to leverage my expertise in digital strategy, technology, and innovation to drive 9mobile’s mission to deliver exceptional customer experiences and achieve our strategic objectives.”
Alogwu’s academic credentials further underline his readiness for this role. He holds an Executive Master’s in Digital Transformation and Innovation Leadership from IE Business School, Madrid, and a Postgraduate Diploma in Digital Business from Emeritus Institute, in collaboration with MIT and Columbia Business School.
He also completed the Senior Management Program at Lagos Business School, Pan-Atlantic University, and earned a BSc. in Geology & Mining from the University of Jos, Nigeria.
His education is further enriched by certifications in Product Management, Lean Six Sigma, and Strategic Innovation, equipping him with a robust foundation to drive innovation, lead digital transformation, and achieve business excellence in competitive landscapes.
His ability to combine academic knowledge with practical expertise has positioned him as a trailblazer in the digital commerce and technology sectors.
Beyond his technical expertise, Alogwu is adept at cultivating and managing strategic relationships with global multilateral organizations and financial institutions, leveraging these partnerships to unlock profitable opportunities. He has consistently demonstrated excellence in leading multicultural teams and navigating complex, multi-stakeholder environments to deliver transformative outcomes.
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NAICOM Signs Agreement with NDPC on Data Protection in Insurance Sector
The National Insurance Commission (NAICOM), has signed agreement with the Nigerian Data Protection Commission (NDPC) with the aim of enhancing data protection within the insurance sector.
According to NAICOM, the Memorandum of Understanding (MoU) has as its objectives training and capacity building in the area of providing training to enhance awareness and skills in data protection, establishing privacy clinics by setting up specialised clinics to address data protection concerns and provide guidance.
NAICOM said other objectives of the agreement include conducting compliance activities, regularly monitoring and enforcing compliance with data protection regulations, promoting awareness in the area of educating insurance companies on the importance of data protection and the benefits of adhering to best practices.
Developing data protection guidelines through creation of specialized guidelines for insurance institutions to ensure they are equipped to handle data protection responsibilities effectively.
NAICOM said the collaboration marked a significant milestone in safeguarding the personal data of insurance policyholders and promoting trust in the insurance sector.
The commission said to ensure the effective implementation of the agreement, an implementation committee would be established. The committee, the commission said, would comprise of representatives from the two agencies, as well as other key industry associations, including the Nigerian Insurers Association (NIA) and the Nigerian Council of Registered Insurance Brokers (NCRIB).
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5 Benefits of MTN Mobile Ads for your Business
Businesses worldwide are increasingly embracing mobile advertising services, allowing them to connect with potential customers directly on their smartphones and engage with them more effectively.
This trend is rapidly gaining momentum, and companies in Nigeria are also taking part in this shift.
Every day, more Nigerian businesses are seeking the most efficient strategies to reach their target audiences and convert them into loyal customers.
MTN Nigeria is redefining digital advertisement with MTN Mobile Ads. With a rich customer base of 79.5 million subscribers in Nigeria, MTN Mobile Ads continues to help businesses reach millions of customers nationwide.
Here are five reasons you should use MTN Mobile Ads for your business advertisements:
Targeted marketing
MTN Mobile Ads uses first party data to enable specific targeting of audience based on behaviour, interests and demographic. This ensures that your marketing efforts are directed toward the most relevant audiences, thereby increasing engagement and conversion.
Data-Driven Insights:
Businesses can gain valuable insights from their advertising campaigns, allowing them to fine-tune their strategies for maximum impact. This data-driven approach helps in optimizing campaigns based on real user behaviour and preferences
Diverse advertising formats
This service supports several advertising formats including targeted SMS, marketplace listing on the MyMTN app, display banners, and Rich messaging services (RCS) across both mobile and web platforms. This versatility allows your business to customize your marketing strategy to suit different audience preferences and increase engagement opportunities.
Data-free solutions
MTN Mobile Advertising provides data-free solutions. That means users can view your Ads with or without data. This feature significantly increases engagement rate as it allows your business connect with customers who may have been avoiding ads to save their data.
Cost-effective
With MTN Mobile Ads, you can choose an advertising plan that suits your budget. This flexibility allows businesses to enjoy the benefits of advertising without overspending.
As competition in businesses increase, the need to make advertising a crucial part of your marketing strategy cannot be over-emphasized.
MTN’s Mobile advertising services are the most result-oriented strategy your business should engage in so you can have the same opportunities your competitors may have.
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