Economy
Investors Snub Equity Mutual Funds Despite Stellar Performance
By Quantitative Financial Analytics
The year 2017 will go down the annals of financial history in Nigeria as the year that mutual funds visited investors with all manner of blessedness.
On average, equity-based funds returned 29.03 percent with the likes of ARM Aggressive fund retuning 58.06 percent, Legacy Equity Fund, 53.74 percent, Coral Growth Fund, 52.79 percent and ACAP Canary Growth Fund recording the lowest performance among equity funds with a whopping 16.57 percent.
In the same likeness, ETFs which are predominantly equity based, returned 38.78 percent on average, with Vetiva Banking ETF recording 50.25 percent, New Gold ETF, 47.87 percent and Vetiva Griffin 30 ETF, 45.98 percent.
All the Equity based funds and ETFs made gains of not less than 16 percent in 2017.
Surprisingly, a flow analysis carried out by Quantitative Financial Analytics’ analysts indicate that investors did not take advantage of the equity market performance. Cash flow analysis is a way of measuring investors’ attraction or appetite for mutual funds.
While every category of mutual funds recorded net inflows in 2017, only the equity fund and ethical fund categories recorded net out flow.
In 2017, the total estimated inflow to the industry stood at approximately N249 billion while outflows amounted to N63 billion leaving a net inflow of N186 billion.
As usual, money market funds attracted the greatest inflow in the amount of N221 billion but suffered outflows amounting to N40 billion, resulting in a net inflow of N181 billion.
Bond or fixed income funds attracted inflows of N18 billion while suffering outflows of N11 billion, leaving it with net inflow of N7 billion. The other categories of Real estate funds, ETFs, and Balanced funds, all ended the year with net inflows but the story is different for equity and ethical funds.
In the year under consideration, equity funds received N4 billion of inflows but suffered outflows in the sum of N8 billion, amounting to a net outflow of N4 billion.
As at March 2, 2018, the total asset of mutual funds in Nigeria was N512 billion out of which only 6.5 percent (N33 billion) is in equity funds.
Though the trend does not seem to be reversing so far in 2018, there appears to be some attraction to equity funds.
Within the first two months of 2018, the industry attracted a total of N98 billion inflows with N14 billion outflows. While N89 billion of those went to money market funds which suffered N10 billion of outflows (net-flow N79 billion), equity funds attracted N2 billion inflows and suffered N0.9 billion in outflows leaving that category of funds with positive net flow.
The reason for the lack of appetite or likeness for equity mutual funds could be because investors are still reeling from the losses made from the market crash of 2009, but for how long, one may ask.
Another reason could be the risk disposition of investors. While money market funds may not be yielding as much in bull markets, they tend to be less risky than equity funds and as such attractive to risk averse investors.
Yet another reason could be lack of data and information. In the Nigerian mutual fund industry, it is easy to get information on money market yields but not so easy to get such information on other categories of mutual funds.
This issue is even exacerbated by some blogs or articles on fund performance being thrown out there. Some of those blog/articles tend to overstate the performance of money market funds while understating that of other categories of funds because such blogs/articles ignore the effects of cash flows on performance calculations.
By lumping cashflows into the fund, they run the risk of interpreting changes in funds’ net asset value as due solely to performance. This erroneous interpretation tends to punish funds that suffer net outflows while rewarding those with net inflows.
It is important however, to note that past performance does not guarantee future performance so much such that the stellar performance of equity funds in 2017 does not indicate that they will perform as well or better in the future, so invest with caution.
By Aduragbemi Omiyale
African leaders have been advised to focus on economic integration through industrialisation, as this would make the continent a formidable force in the global market.
This charge was given by the Minister of State in the Tanzanian President’s Office responsible for Planning and Investment, Prof. Kitila A. Mkumbo, during a visit to the Dangote Petroleum Refinery and Petrochemicals in Lagos.
“Africa now needs economic liberation, and that can only come through industrialisation,” he said, describing Mr Aliko Dangote as Africa’s leading industrialist whose investments are increasingly extending beyond Nigeria to support development across the continent.
He added that Tanzania looks forward to working with Dangote Group as part of a broader vision of accelerating Pan-African industrialisation and strengthening regional manufacturing capacity.
The Minister also highlighted the importance of local refining capacity in improving Africa’s energy security, particularly in light of recent disruptions in global oil markets.
Referring to the impact of tensions around the Strait of Hormuz on global fuel prices, he said increased refining capacity from facilities such as the Dangote Petroleum Refinery would help cushion African economies against external shocks.
According to him, affordable and reliable energy remains one of the most important drivers of economic development, noting that expanded refining capacity across the continent would contribute significantly to lowering energy costs and improving the quality of life for millions of Africans.
The Tanzanian delegation was in Nigeria to follow up on discussions held earlier this year between President Samia Suluhu Hassan and Mr Dangote regarding the expansion of Dangote Group’s investment footprint in Tanzania.
The East African nation reaffirmed its commitment to deepening economic cooperation with Dangote Group, expressing strong interest in attracting new investments in fertiliser production, energy and industrial infrastructure to support the country’s long-term development agenda.
“We have come here to make a follow-up on what they deliberated with our President in terms of further Dangote investments in Tanzania,” Mr Mkumbo said.
By Aduragbemi Omiyale
One of the leading brewers and beverage companies listed on the Nigerian Exchange (NGX) Limited, Champion Breweries Plc, has expressed its commitment to strengthening its market position.
The beer maker gave this assurance while reacting to its financial performance for the first half of 2026, which was strong, driven by solid commercial performance, improved operational efficiencies, and the successful expansion of its business portfolio following the acquisition of EnjoyBev B.V.
In the period under review, the organisation boosted its growth platform through strategic investment, delivered resilient operating performance, and successfully transitioned to a new group structure.
Its revenue reached N35.73 billion, while second-quarter revenue amounted to N21.37 billion. Operating profit stood at N6.17 billion, and profit after tax attributable to the group was N2.65 billion, with second-quarter profit after tax of N1.76 billion.
The firm also successfully completed the acquisition of an 80 per cent equity interest in EnjoyBev B.V., strengthened its capital base through a successful capital raising programme that increased shareholders’ equity to N69.08 billion, and maintained full compliance with NGX free float requirements, with free float increasing to 25.72 per cent as of June 30, 2026.
“The first half of 2026 marks a defining chapter in Champion Breweries’ journey. We have not only delivered a strong operating performance but also successfully transformed our business into a broader beverage group with an expanded platform for sustainable growth.
“While higher finance costs associated with our strategic investment programme impacted profitability during the period, our underlying business remains strong.
“The combination of disciplined commercial execution, continued investment in our brands and route-to-market capabilities and improving operational efficiency positions us well for future growth.
“We remain focused on creating long-term value for shareholders, strengthening our market position, and capturing the opportunities presented by our expanded business platform,” the acting chief executive of Champion Breweries, Mr Rasheed Adebiyi, said.
For businesses operating across borders, payments are no longer simply the final step in a transaction. The way money moves can influence where a company sells, how quickly it can enter a new market, and how easily customers can complete a purchase. As digital payment methods become more diverse, businesses are adjusting not only their checkout options but also the way payment processes fit into wider operations.
This shift is particularly visible in international commerce. A company can now serve customers in multiple markets without relying on a single payment method or a traditional physical presence in each location. Digital payments have become part of the infrastructure that supports increasingly distributed business models.
A More Connected Payment Environment
Global commerce has created a more complicated payment environment. Customers in different countries may have very different expectations about how a purchase should be paid for. Some markets rely heavily on cards, while others have seen rapid adoption of digital wallets, bank-based payment methods, or other local alternatives.
For businesses, this variety creates both opportunities and practical challenges. Offering payment options that customers recognize can reduce friction during a transaction, while supporting several markets may require businesses to work with different payment technologies and providers.
Digital payments have therefore become closely connected to market expansion. A company entering a new country does not only need to consider demand for its products or services. It also needs to understand how customers in that market prefer to pay and whether its existing payment setup can accommodate those expectations.
More Choices for Businesses and Customers
The growth of digital payments has expanded the range of choices available on both sides of a transaction.
Consumers can increasingly choose between cards, digital wallets, bank transfers, mobile payment methods and other forms of electronic payment. Businesses, meanwhile, can select from different technologies and payment providers depending on their markets and operational requirements.
This development has changed the role of payments in the customer experience. Payment is no longer necessarily treated as an isolated technical process that begins only after a purchasing decision has been made. The available options can influence whether a customer completes a transaction in the first place.
For international businesses, flexibility can be particularly important. A payment method that is familiar and convenient in one market may be less relevant in another. Supporting a broader selection can allow businesses to adapt their payment experience without changing the underlying product or service.
The Rise of Alternative Payment Models
Traditional card and bank-based payments remain important, but the digital payments landscape has expanded beyond these established methods. Digital wallets, account-to-account payments, mobile solutions and cryptocurrency have all contributed to a broader definition of what a digital transaction can look like.
Cryptocurrency remains a smaller part of the overall payments landscape, but it has created another category of payment technology for businesses to consider. Specialized solutions such as BitHide can provide businesses with tools for handling crypto payments as part of their broader payment operations.
The significance of this development is not necessarily that every business will adopt cryptocurrency. Rather, it demonstrates how the payment landscape continues to diversify. Businesses operating internationally can increasingly choose from different models instead of relying on a single approach across every market.
Payments Are Becoming Part of Business Operations
As payment systems become more digital, their role increasingly extends beyond accepting money from customers. Payment processes can interact with accounting, order management, customer records and other parts of a company’s digital operations.
This is particularly relevant for businesses with large transaction volumes or customers in multiple countries. Manual payment processes can become difficult to manage as the number of transactions, currencies and payment methods increases. Digital systems can help businesses organize these processes within a wider operational framework.
The result is a gradual shift in how companies think about payments. Instead of treating payment processing as a separate function, businesses are increasingly considering it alongside other elements of their digital infrastructure.
This does not mean that every company needs a complex payment setup. The appropriate approach depends on the business model, target markets, transaction volumes and types of customers involved. For some companies, a small number of established payment methods may be sufficient. Others may need a more flexible arrangement because of the markets they serve.
Adapting to Different Markets
One of the more important changes brought by digital payments is the ability to adapt payment experiences to different markets.
International businesses often face differences in consumer behavior, financial infrastructure and preferred payment methods. A payment strategy that works well domestically may therefore require adjustments when a company expands internationally.
Digital payment technology can make these adjustments more practical, but it does not remove the need for local market knowledge. Businesses still need to understand customer preferences, applicable requirements and the practical costs associated with different payment methods.
This makes payment strategy part of international expansion rather than an issue that can be addressed only after a new market has been entered.
What Comes Next for Global Businesses
The digital payments market is likely to continue becoming more diverse as businesses and customers adopt new ways of moving money. The important change may not be the replacement of one payment method by another, but the growing ability to combine different methods according to the needs of a particular business or market.
For global companies, this creates an emphasis on adaptability. Payment systems need to support the way a business operates rather than becoming a limitation on where and how it can sell.
Digital payments are consequently becoming more than a convenient alternative to cash or traditional payment processes. They are increasingly connected to international commerce, customer experience and day-to-day business operations. As payment options continue to develop, companies that can adapt their payment strategies to different markets will be better positioned to operate in an increasingly digital global economy.
