Economy
Jumia’s Q3 2020 Results Show Positive Rebound
Months of headwinds appear to be fading for African e-tailer, Jumia as its recently announced financial results for the third quarter ended September 30, 2020, have shown the company on a rebound and on its way to recovery.
Jumia, in Q3 2020, made “significant progress on the path to profitability” as evidenced by increased gross profit by 22 per cent year-over-year and decrease in the operating loss by 49 per cent year-over-year.
The firm’s payment platform, JumiaPay’s total payment volume (TPV) also increased by 50 per cent year-over-year, while annual active consumers reached 6.7 million in Q3 2020, up 23 per cent year-over-year, among other positive headlines in the quarter in review.
In more details, the financial results indicated that Jumia’s gross profit reached €23.2 million, a year-over-year increase of 22 per cent, while gross profit after fulfilment expense (GPAFE) reached €6.6 million, compared to a loss of €1.7 million in Q3 2019.
Sales & Advertising (S&A) expense was €6.2 million, the lowest quarterly amount since 2017 and a year-over-year decrease of 55 per cent. The e-commerce firm attributed this feat to a commitment to increase marketing efficiency as S&A expenses per Order decreased by 53 per cent from c. €2.0 in Q3 2019 to €0.9 in Q3 2020.
Jumia also for the first time at the group level, returned double positives in both GPAFE and S&A expenses, with the majority of countries breaking even at this level Q3 2020.
Operating loss reached a three-year low of €28.0 million, decreasing by 49 per cent year-over-year. JumiaPay TPV was €48.0 million, a year-over-year increase of 50%, more than doubling on-platform TPV penetration from 12.2 per cent of GMV in Q3 2019 to 25.6 per cent of GMV in Q3 2020.
However, GMV was €187.3 million, down 28 per cent year-over-year, as the effects of the business mix rebalancing initiated late last year continued playing out during the third quarter. But this was not enough to blind the significant path to profitability that the foregoing indices have highlighted.
Commenting Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia, said, “We are making significant progress on our path to profitability with Adjusted EBITDA loss in the third quarter of 2020 decreasing by 50 per cent year-over-year.”
This positive stride is also future-proven by several innovative growth fundamentals that management of Jumia initiated and implemented over a period of time. The “business mix rebalancing” includes increased attraction of Jumia platform for everyday product categories, enhanced promotional discipline and support.
By positioning Jumia as the destination of choice for brands in Africa, over 60 brands from across geographies were on Jumia platform. Multiple enhancements across the logistics and marketing operations were also implemented; this led to a decrease in fulfilment and marketing expenses for Q3 2020 by 20 per cent and 55 per cent respectively, on a year-over-year basis.
The completion of portfolio optimisation in 2019, along with overhead rationalisation, also resulted in a decrease in General and Administrative (G&A) costs excluding share-based compensation of 24 per cent year-over-year in Q3 2020.
The continuous drive for the robust growth of JumiaPay by more than doubling the penetration of JumiaPay TPV to over 25 per cent of GMV in the third quarter of 2020 also bolstered Jumia’s positive outlook.
Attack and lawsuit over the sale of Jumia shares, the slump in share price, loss taking and recent offload of MTN Group’s equities were some of the headwinds that have challenged the e-tailer, shading its potential as a profitable enterprise.
The Q3 2020 positive trajectory no doubt, rewrites the narrative for Jumia, whose performance over the months had been swirled on many fronts.
“We believe the fundamentals of our business have never been stronger, setting a robust foundation for the long term, profitable growth of Jumia,” Hodara and Poignonnec stated.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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