Economy
Nigeria’s Consumer Confidence Level Gains 3 Points in Q4 2016—Report
By Modupe Gbadeyanka
A new report released by Nielsen Holdings Plc, a a global performance management firm providing a comprehensive understanding of what consumers watch and buy, has revealed that Nigeria climbed three points to 116 in the fourth quarter of 2016, after a steep decline in the third quarter.
In the latest Consumer Confidence Index (CCI) figures for Quarter 4 of 2016, it was observed that sentiment in the west of Africa is on the increase with Ghana rising by two points to 111.
Managing Director of Nielsen East and West Africa, Mr Abhik Gupta, while explaining the reasons for Nigeria’s improved consumer sentiment in a statement made available to Business Post, stated that, “Despite previous drops in consumer confidence, Nigerians are now more positive than Kenyans, South Africans and Ghanaians, in terms of their job prospects and personal finances and as the country’s macro, business and retail prospects recover we expect to see continued positivity amongst Nigerian consumers.”
Adding to this positive outlook, the latest Nielsen Africa Prospects Indicator (APi), which integrates macro-economic, business, retail and consumer factors points to the fact that predictions are that the worst is over and it will not take much to drive the Nigerian economy into positive growth levels in 2017.
Short term positivity in Nigeria
In light of this, all confidence indicators in Nigeria increased in the fourth quarter. The percentage of respondents who predict that their personal finances will be good or excellent in the next 12 months jumped five percentage points to 80 percent, and 59 percent of Nigerian respondents said job prospects will be good or excellent, up one percentage point from the third quarter.
Immediate-spending intentions increased four percentage points, rising to 39 percent while more than four in 10 Nigerian respondents (44 percent) said they had spare cash, up from 36 percent in the third quarter.
In terms of what they would use this spare cash for, the highest number of Nigerians are seeking to batten down the hatches on their current financial future, with 80 percent saying they would put it into savings.
The second highest number (69 percent) wants to use their spare cash on home improvements and decorating and 62% on investing in shares and mutual funds. Unsurprisingly, 60 percent would spend it on out-of-home entertainment as they seek some respite from their current daily stresses and strains.
Mixed positivity in Ghana’s results
The overall increase in Ghana’s CCI, was due to a higher proportion of “Excellent” responses even though “Good” responses have declined.
This means that despite the positive outlook for jobs dropping two percentage points from Q3 to an overall 55 percent, this was made up of 12 percent saying “Excellent” (up from 10 percent previous quarter) and 43 percent saying “Good”.
This was followed by positive personal-finance sentiment decreasing by one point to 76 percent, of which 23 percent said “Excellent” (up by 4 points) and 52 percent said “Good”.
Immediate-spending intentions dropped by two percentage points to 40 percent of which 10 percent said “Excellent” (up by 4 points) and 30 percent said “Good”.
Less than half of Ghanaian respondents said they had spare cash (47%) – a drop of 3 percentage points from the third quarter, however this proportion of consumers is higher than Nigerians (44 percent) and Kenyans (42 percent).
In terms of what they would use this spare cash for, Ghanaians remain financially conservative in their outlook, with the highest number (82 percent) saying they would put it into savings, the second highest number of respondents 72 percent see home improvements as a worthwhile investment while (59 percent) saying they would invest in shares/mutual funds.
Overall Gupta comments; “In the backdrop of improved confidence levels, businesses need to adjust to the altered daily habits that consumers are displaying to deal with the tough market conditions. As consumers have been forced to reduce consumption, only buying on an immediate need basis, businesses need to meet these new consumers realities with agility, flexible product offerings, packaging and pricing.”
By Adedapo Adesanya
Renaissance Africa Energy Company Limited has exceeded crude oil production targets by 40 per cent in its first month of operating the former Shell Petroleum Development Company (SPDC) Joint Venture assets.
In a statement lauding the development, the Nigerian National Petroleum Company (NNPC) Limited hailed the performance as “sterling and remarkable.”
The achievement in April 2025 is being viewed as a strong signal of renewed momentum in Nigeria’s upstream sector and a promising step toward boosting national oil output and economic growth.
“This is to commend Renaissance Africa Energy Company Limited, your esteemed leadership team and staff for exceeding the production target in your JV assets for April 2025,” said NNPC in an official letter signed by its Executive Vice President, Upstream, Mr Udobong Ntia.
The state oil company expressed hope that the April milestone would inspire Renaissance “towards accelerating the realisation of the initiatives for incremental production volumes while protecting the base.”
The company further pledged its support to the JV operator in “exploring collaborative opportunities, not only for production growth, but also for cost discipline given the current realities of our price environment.”
NNPC reiterated its target to ramp up oil production to over 2 million barrels per day by 2025 and sustain it through 2027, with projections to hit 3 million barrels per day by 2030.
Reacting to the commendation, Renaissance Managing Director and CEO, Mr Tony Attah, described the recognition as both “encouraging and motivating,” stating that the company remains committed to driving operational excellence.
“For us, it is a taste of the new beginning we have promised,” Mr Attah said.
He added that the Renaissance team was “already assessing additional high-impact initiatives and operational enablers capable of unlocking incremental production volumes while ensuring the integrity and protection of our existing base production.”
Mr Attah attributed the early success to strong collaboration with host communities, government stakeholders, JV partners, and the dedication of the workforce.
By Adedapo Adesanya
The proposed sale of a majority stake of Lafarge Africa Plc to a Chinese firm, Huaxin Cement Limited, hit another snag as a Federal High Court sitting in Ikoyi, Lagos, dismissed a preliminary objection filed by the cement maker.
Justice Lewis Allagoa on Thursday ruled that the court has jurisdiction to hear the suit brought by Strategic Consultancy Limited, a Nigerian company and minority shareholder in Lafarge Africa.
Recall that the Nigerian Senate had also blocked the sale, citing issues around Chinese influence in March 2025.
Yesterday, the judge rejected Lafarge’s motion to strike out the case for lack of jurisdiction, marking a significant legal setback for the 66-year old cement giant.
“The 1st and 2nd defendants’ motion objecting to the Court’s jurisdiction is hereby dismissed,” Justice Allagoa stated in his ruling delivered on Thursday.
The suit, filed by Strategic Consultancy Limited, is challenging Lafarge’s planned sale of 83.81 per cent of its shares; currently held by Holcim Group to Huaxin Cement, a foreign company based in China.
The plaintiff alleges that the sale was conducted secretly and without the knowledge or involvement of minority shareholders.
According to court filings, Strategic Consultancy argued that the planned sale violates provisions of the Companies and Allied Matters Act (CAMA) 2020, the Securities and Exchange Commission Act, and the Nigerian Investment Promotion Act.
“The purported sale was done surreptitiously and without affording Strategic Consultancy Limited and other minority shareholders the opportunity to acquire the shares,” the plaintiff stated in its originating summons.
Represented by senior advocate Mr D.A. Awosika (SAN), Strategic Consultancy also contended that Huaxin Cement is not registered in Nigeria, thus making the transaction unlawful under Nigerian regulations.
Lafarge, represented by Mr Babatunde Fagbohunlu (SAN), and Holcim Group, represented by Mr Uzoma Azikiwe (SAN), had urged the court to dismiss the case on grounds that it lacked the jurisdiction to entertain it. However, Justice Allagoa disagreed.
In a related development, the judge also granted the plaintiff’s request to join Caricement BV (Netherlands) and Associated International Cements Ltd (England) as 5th and 6th defendants respectively, having been identified by the respondents as the actual shareholders involved in the transaction.
“It is hereby ordered that the persons sought to be joined herein and hereby joined as prayed, and leave to issue and serve the Originating Summons out of jurisdiction is hereby granted,” Justice Allagoa ruled.
The case has been adjourned to June 11, 2025, for further proceedings.
By Adedapo Adesanya
The Chairman of BUA Group, Mr Abdul Samad Rabiu, has pledged to further crash the prices of rice and other food items to alleviate high food costs in Nigeria.
Speaking to State House Correspondents after meeting with President Bola Tinubu on Thursday, Mr Rabiu said BUA Foods keyed into that policy and was able to import quite a lot of wheat, maize and rice.
The billionaire commended President Tinubu for granting waiver on imported food items, saying that his “foresight” helped crash food prices in the country.
Recall that in July 2024, Mr Tinubu’s administration announced the suspension of customs duties on imported food items to stem food inflation.
“At the time food prices were really very high last year. For example, the price of rice was about N100,000 or thereabout per 50 kilo bag. The flour was about N80,000 per bag and maize was about N60,000 per 50 kilo bag, and pasta above N20,000 per Carton. So, what we did was, we keyed into that policy and BUA was able to import quite a lot of wheat, maize and rice.
“The moment the shipment started coming, we started processing, we crushed the prices of some of these commodities. And today I’m happy to inform you that the price of rice is about N60,000 from what it was last year at N110,000. Flour is today N55,000 Naira per 50 kilo bag.
“Maize is about N30,000. And this happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months, and with that, we’ve been able to bring down the prices of these commodities,” Mr Rabiu said.
He also said that the Rice Millers Association has come together to address the issue of hoarding by some companies, adding that the association will not allow any of its members to hoard rice.
“What we are doing as rice Millers is that we want to ensure that rice Millers are not buying and hoarding paddy, although at the end of the day, it’s quite difficult to stop that. But what is happening is that once they know that there is rice availability imported, because BUA has imported enough rice to last us until the end of the year…”
He also noted that BUA foods will continue to support the efforts of the government in ensuring that food prices are down.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN