Economy
Bad Money Habits That Can Ruin Your Business
To be successful as an entrepreneur, good money management practice is crucial. Entrepreneurs start their business with an idea and lots of energy, however as the business gets very engaging, they start to unconsciously develop bad financial habits. Here are some of those habits and how you can break them:
Keeping one account for both personal and business funds
A lot of small business owners often make the mistake of combining both business income and expenses with personal income and expenses. This is a very bad practice as it is almost impossible to monitor your business funds and performance in general.
Solution: Get your business registered and open a business account solely for business funds.
Not keeping financial records
How do run your business if there are no records available for checks and balances? Some business owners think they can keep track of expenses and incomes in their head but thats impossible. It can never be accurate and will only lead to business decisions made based on wrong statistics. You would also end up spending more than you earn and will eventually end up in debt. Note that without financial records to back your decisions, you cannot approach an investor to request for funds.
Solution: Start keeping records so you can plan more effectively for your business. There are tools out there that help to automate your records.
Making late payments
Taking a loan and not paying as at when due is bad for your business. This affects the reputation of your business and lowers your credit score. A credit score shows your credit worthiness. Banks and investors make use of this score to evaluate the risk posed by lending money to a business and the probability of paying back.
Solution: Ensure you keep records and make repayments when due. If you are not sure of when you are to pay back, clarify with your account officer or the officer in charge.
Excluding yourself from your business payroll
You might think you are managing your funds well but in actual fact, you are not. You end up dipping into business funds with no proper structure to guide you. Therefore, it is better to set aside an amount for yourself. Besides, you are also working so you are entitled to it. You have needs and you will need funds to fulfil them.
Solution: Put yourself on your business payroll. You can choose to pay yourself bi-monthly or monthly, whichever works better for your business. This can be adjusted based on the business income.
Impulse purchases
Some business owners do not have control over their spending and want almost everything they see. Sometimes you just need to sit back and evaluate the importance of the item and if it will add value to you and your business. You need to be able to distinguish your needs from your desires. If you listen to a lot of successful entrepreneurs today, they all say you should spend less than you earn. That is your key to financial success.
Solution: To curb your spending, give yourself a certain period to think that purchase through before making a decision. Chances are that you will realize you never really needed that item.
Not delegating tasks
Every entrepreneur should know how to delegate. When a problem or task arises, you spend both time and money on it and the more you spend on one, the less you spend on the other.Consider this scenario: You spend a day doing a task that costs N5,000 when you could have just hired someone to do it and spend time on other tasks more specific to your expertise and worth much more.
Solution: Consider the time versus the money that will be spent on a task. Will it be better to pay someone to do it or do it yourself? You can hire someone to work on tasks you are not skilled enough to handle so you can spend time on other important tasks.
Forming good habits are how successful entrepreneurs achieve their goals and manage to run their businesses effectively. Avoid and break off these habits to become better with your business finances.
Source: http://635.gtbank.com/2016/10/financial-habits-that-can-harm-your-business/
By Adedapo Adesanya
Dangote Refinery reportedly issued a tender on Tuesday to sell 128,000 metric tons of residual fuel oil in April 2025.
Reuters reported that this is according to a summary of the tender document.
The 650,000 barrel per day Dangote refinery will close the tender today — Wednesday, March 26 by 1 pm (Nigerian time)— as it seeks buyers for 88,000 tons of low sulphur straight run fuel oil and 40,000 tons of slurry oil for loading on April 10-12, the summary showed.
Straight run fuel oil is a feedstock processed through secondary refining units and turned into products like petrol and diesel.
Meanwhile, industry monitor firm, IIR noted that Dangote will shut its current 204,000 barrels per day petrol producing unit for 30 days for maintenance tentatively expected to start on June 1.
Dangote’s fuel oil exports averaged 75,000 barrels per day over the period from March to August 2024, but dropped to 20,000 barrels per day from September, according to shipping data analytics firm Kpler, when its petrol making residue fluidized catalytic cracking unit started production.
The refinery has been buying feedstock from across the world— including from the US, Angola, and Algeria— to add to its domestic deliveries as it looks to meet its full capacity target by end of the month.
In February, Mr Edwin Devakumar, vice-president of Dangote Industries Limited (DIL), said the refinery could begin operating at full capacity in 30 days.
The Lagos-based oil facility received above 24 million barrels of Nigerian supply in October and November last year.
The major shareholder in the structure and chairman, Mr Aliko Dangote assured Nigerians that his refinery has over N600 billion worth of premium motor spirit (PMS) in storage that can sufficiently meet Nigeria’s needs.
The buying spree comes as the Naira-for-crude deal with the Dangote Refinery and other local refineries was suspended by the Nigeria National Petroleum Company (NNPC) Limited.
Nigeria’s decision to cancel the Naira-for-crude deal with the refinery has since created panic in the hearts of marketers and consumers alike.
The 650, 000 barrels per day refinery has also suspended selling petrol in Naira to marketers.
It lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US Dollars.
By Modupe Gbadeyanka
The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has lauded the reforms being carried out by his team to restore confidence in the Nigerian economy.
Speaking when a delegation of scholars from the Harvard Kennedy School visited him at the CBN headquarters in Abuja, he said the strategies put in place by the apex bank to stabilize the foreign exchange (FX) market and curb inflation in the country were already yielding positive results.
“Mr Cardoso acknowledged recent challenges but highlighted progress in stabilizing the foreign exchange market and curbing inflation,” a statement from the CBN on Tuesday disclosed.
He expressed the impact of the educational institution in his leadership skill, saying it is an honour to be associated with the Harvard Kennedy School.
“As we reset the bank, we are committed to being a hub for thought leadership. The exposure you gain from institutions like Harvard is invaluable, and we see this as an opportunity to build long-term alliances,” he was quoted to have said.
The CBN chief is an alumnus of the Harvard Kennedy School and the first African elected to the global HKS Alumni Board of Directors.
The visit was part of the scholars’ Africa Trek, which also included stops in Ghana. It is the first time a Harvard Africa Trek delegation would visit the CBN.
The delegation comprised 50 students from 19 countries, including representatives from the Harvard Business School, Massachusetts Institute of Technology and Stanford University.
President of the Harvard Kennedy School Alumni Association of Nigeria, Adaora Ndukwe and the HKS Nigeria Trek Delegation Lead, Ms Sheffy Kolade, thanked the central bank for hosting the students.
The Africa Trek initiative is designed to foster direct interactions between emerging global leaders and key policymakers on the continent.
It provides a platform for in-depth discussions around governance, innovation, economic development and the role of central banking in national progress.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by marginal 0.02 per cent on Tuesday, March 25 spurred by a boost in the price of 11 Plc.
At the close of business, the share price of 11 Plc increased during the trading day by N1 to close the day at N241.00 per unit compared with the previous day’s N240.00 per unit.
Consequently, the market capitalisation increased by N340 million to settle at N1.929 trillion, the same value it ended a day earlier, and the NASD Unlisted Security Index (NSI) went up by 0.62 points to 3,340.14 points from Monday’s 3,339.52 points.
Trading data showed a decrease of 98.3 per cent in the volume of securities transacted to 16,848 units from the 961,456 units transacted in the previous trading day, the value of transactions slid by 85.6 per cent to N3.2 million from N22.1, and the number of deals fell by 81.8 per cent to four deals from 22 deals recorded.
Impresit Bakolori Plc remained the most active stock by volume at the bourse since the start of the year till yesterday with 533.9 million units worth N520.9 million, followed by Industrial and General Insurance (IGI) Plc with 70.0 million units worth N23.8 million, and Geo Fluids Plc with 44.1 million units sold for N88.9 million.
Also, Impresit Bakolori Plc was the most active stock by value on a year-to-date basis with a turnover of 533.9 million units worth N520.9 million, trailed by FrieslandCampina Wamco Nigeria Plc with the sale of 13.3 million units valued at N513.9 million, and Afriland Properties Plc with 17.6 million units valued at N360.1 million
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