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Abuja Bakers Plan to Increase Price of Bread by 30%

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Price of Bread

By Adedapo Adesanya

As inflation continues to bite deeper, the Association of Master Bakers and Caterers of Nigeria (AMBCN), Abuja Chapter, has said it is considering a 30 per cent increase in the price of bread, due to the high cost of materials for production.

According to the News Agency of Nigeria (NAN), the association is taking the step so that bakeries in the capital can stay afloat.

The Chairman AMBCN, Mr Ishaq Abdulkareem, while speaking on Monday in Abuja, explained that the imminent increase in price was due to an increase in the cost of ingredients and production.

Mr Abdulkareem lamented that the prices of all ingredients used for baking were too high, especially flour and sugar and the increase in prices of flour and other baking materials necessitated the development.

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He also appealed to the National Agency for Food and Drug Administration and Control (NAFDAC) to reduce the cost of business registration.

“We want to appeal to NAFDAC, they are our regulatory agency, the current cost they are demanding for registration is not part of ease of doing business.

“We were paying N32,500 for registration before, and now it is about N90,000,” Mr Abdulkareem said.

According to a baker, Mrs Maria Cardillo, the CEO of Bon Bread, there is the need for an increase in the price of bread to avoid the collapse of the bread business due to factors beyond the association’ control.

“The 30 per cent has not been effected before and price needs to be increased again because we have had an increase in prices of raw materials and we don’t have an alternative.

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“For every N500 added on every cost of raw materials, it will affect our cost of production,” Mrs Cardillo said.

She said the sector was faced with series of challenges that needed urgent attention to avoid collapse.

Ms Peace Izeduwa, Manager, Nextar Bakery, also confirmed to the agency that the prices of raw materials were outrageous and was affecting the cost of bread.

She urged the federal government to look into it and regulate the prices of material used in bread production adding that the 30 per cent planned increment was not even enough.

“The 30 per cent we are trying to add on it, it’s not like it is going to take care of all our profit. Even with the increment of 30 per cent, we still are running at a loss.

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“Milk is now N54,000 as against N34,000 that we were complaining of; sugar used to be N18,000, it is now N20,000

‘’Butter used to be N9,000. Now we buy the same butter for N14,000 to N15,000.

‘’We have other issues such as the high cost of power. Last month, Abuja Electricity Distribution Company gave us a bill of N955,300, almost a million yet, the power is not stable.

‘’We still run on generator, water is not free.

“We need the government to look into these issues and help us regulate the price of all the raw materials we are using in the bread industry and other industries,” she said.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Economy

SEC Introduces Regulatory Incubation Program for Fintechs

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fintechs

By Modupe Gbadeyanka

A regulatory incubation (RI) program for financial technology (fintech) companies operating or seeking to operate in Nigeria has been introduced by the Securities and Exchange Commission (SEC).

A circular issued by SEC disclosed that this framework would be officially launched in the third quarter of 2021 and will operate by admitting identified Fintech business models and processes in cohorts for a one-year period.

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Participation in the RI program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase.

The categories to be admitted into each cohort will be determined based on submissions received through the Fintech Assessment Form and communicated ahead of each take-off date.

SEC explained that the scheme was designed to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.

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The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by fintechs without compromising market integrity and within limits that ensure investor protection.

It was disclosed that review of completed Fintech Assessment Forms will continue on an ongoing basis and those who consider that there is no specific regulation governing their business models or who require clarity on the appropriate regulatory regime for seeking the authorisation of the commission, are encouraged to complete the Fintech Assessment Form.

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Economy

NGX Suspends Trading on GTBank Shares Ahead of Delisting

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GTBank Branch

By Dipo Olowookere

In preparation for the eventual delisting of shares of Guaranty Trust Bank (GTBank) Plc from its trading platform, the Nigerian Exchange (NGX) Limited on Friday, June 18, 2021, placed the banking stock on a full suspension.

GTBank, a tier-one lender trading its equities on the exchange, intends to transform into a financial holding company (Holdco) so as to offer a wide range of services it is restricted to do.

Some years ago, the Central Bank of Nigeria (CBN) directed banks in the country to offload their subsidiaries not performing core lending services.

This was after many deposit money banks (DMBs) were delving into different business ventures, including insurance, stockbroking, asset management, amongst others.

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For the CBN, which regulates the banking industry in Nigeria, most of these banks were losing focus and were not supporting businesses that need funds to grow and then stimulate the economy in the process.

To address this issue, the apex bank asked banks to sell off their non-banking assets and this forced many of them to offload their companies not offering core banking services.

However, there was an opening for banks to still delve into other sectors within the financial and capital markets and this was by operating as a Holdco.

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A few of them towed this path, including FBN Holdings, Stanbic IBTC Holdings and FCMB Group.

Not wanting to be left out, GTBank is joining the party and to achieve this, it is delisting its banking arm, which is the popular GTBank from the stock exchange.

GTBank will now operate as a private company, while the new Holdco, Guaranty Trust Holding Company Plc, will now be a public company. The shares of this new firm will be listed on the NGX after the delisting of GTBank.

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Last Friday, the stock exchange informed the investing community of the latest development, announcing the suspension of trading on GTBank shares.

In the circular sighted by Business Post, the NGX explained that the rationale behind placing GTBank stocks on full suspension is to “prevent trading in the shares of the bank” in preparation of its “eventual delisting”

Before trading on its stocks was suspended on Friday, GTBank closed at N28.55 on Thursday after appreciating by 50 kobo or 1.78 per cent.

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Economy

DLM Capital Remains Best Structured Finance & Securitization Team in West Africa

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DLM Capital

A prominent developmental investment bank, DLM Capital Group, has emerged winner at the Capital Finance International (CFI) 2021 awards as the best-structured finance and securitization team in West Africa.

This award has been won consecutively in three years and affirms the group’s strong performance as a leading investment institution and asset manager.

CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.

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DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth.

The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans while mobilizing resources for the continent’s economic and social development.

“In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Ms Chinwendu Ohakpougwu.

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“We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers.

“DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients to make a difference, and we are honoured to be recognized once again as a reflection of the quality of support offered to our clients,” she added.

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DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 per cent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.

The institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.

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