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Abuja Update

TRANSCORP, Chams surpass 700% returns in 2023

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It was a harvest of capital gains for the shareholders of Transport Hotels PLC, Chams Holding Company PLC and WG PLC, as they towered above the ten companies that topped the winners’ chart on Nigeria Exchange Limited (NGX) in capital appreciation in 2023, with price gain that ranged from 721.8 percent to 1022.9 percent.

Transcorp Hotels PLC posted the highest capital appreciation as the share price jumped from N6.25 in 2022 to close at N70.18 on the last trading day of 2023, an increase of 1022.9  percent. The company is a subsidiary of Transnational Corporation of Nigeria (TRANSCORP).

Its market capitalisation rose to N718.8 billion at the last trading day of 2023. With a share price appreciation of 1022.9 percent, Transcorp Hotels is the best performing stock in the Nigerian Exchange in 2023. The company’s share price started 2023 at N6.25 and closed 2023 at N70.18. The company’s market cap also hit N718.8 billion at the close of trading in 2023.

Chams Holdings Plc has sustained its stellar performance in 2023 as the frontline financial technology company’s share price rose by 795.5 percent from N0.24 at the beginning of 2023 to close at N1.97.

Chams HoldCo’s fundamentals are waxing stronger with a gross profit of N1.84 billion in nine months in 2023, a year-on-year growth of 181.3 percent from the corresponding period in 2022.

In a recent media interview, the Company’s Group Managing Director, Mrs Mayowa Olaniyan, attributed the performance to the gains from the ongoing transformation in the entire group which comprises ChamsSwitch, ChamsAccess, CardCentre, and ChamsMobile, its subsidiaries.

The third best price gainer in the review period was  CWG PLC, formerly Computer Warehouse Group.  From N0.92 at the start of 2023, the share price hit N3.96 per unit at the end of the trading day, an increase of 721.8 percent. The company is one of the pioneers in the IT ecosystem. The company’s nine-month revenue was N18.26 billion in 2023, an increase of 79.7 percent in the preceding year.

Apart from being a leading provider of Information and Communication Technology (ICT) across West, Central and Eastern Africa, the company is also a leading cloud service provider that enables Africa’s SMEs to exploit cloud services for commerce and management.

Other companies that made the league of the top ten were: Transnational Corporation of Nigeria (TRANSCORP)  676.4 percent;  MRS Oil, 644.7 percent; Northern Nigeria Flour Mills, 639.8 percent; Japaul Gold and Ventures, 507.1 percent; Ikeja Hotels, 571.4 percent; FTN Cocoa Processing, 410.3 percent and Infinity Trust Mortgage Bank, 372.44 percent.

Despite the headwinds that characterised the business environment in 2023, NGX All-Share Index, a measure of capital gains was up by 45.9 percent to close at an all-time high of 74, 773. 77 points while the market capitalisation closed at N40.92 trillion.

Abuja Update

Father arrested for writing UTME for son — JAMB

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In a shocking incident, a father was recently arrested for writing the Unified Tertiary Matriculation Examination (UTME) for his son, according to Professor Ishaq Oloyede, the Registrar of the Joint Admissions and Matriculation Board (JAMB).

Professor Oloyede made this revelation on Wednesday while inspecting a JAMB centre in Kaduna, expressing concern over the growing trend of parents impersonating their children to sit examinations.

He emphasised that cheating does not pay and warned those engaging in such practices to desist.

The JAMB Registrar attributed the arrest to the board’s increased use of technology to detect and prevent impersonation.

He noted that the board is working hard to ensure the integrity of the examination process and prevent fraudulent activities.

“Across the country, most of the problem we have is impersonation. We have a case of a father impersonating his son, writing examinations for the son and I wonder, are you not destroying your son’s future?

 ”Of course, two of them are now in custody. I can’t understand what the father will now tell his son when they are both locked up in the same cell. This definitely happened not in Kaduna, but I don’t want to disclose the state.

“So, it is largely a case of impersonation, but we are ahead of them. We are just picking them up like chickens now, because the facilities are there for us to see what they are doing and to pick them up. And even those that we have left for research purposes, they will see what will happen after the exams,” he said.

The Registrar added that there were cases of people with two NINs which had defeated the purpose of the identity verification.

He said the board would take the matter up with the NIMC.

The JAMB Registrar also used the opportunity to inform those that have missed the exam, for reasons not caused by the Examination body, to forget about it, saying that JAMB cannot spend tens of millions of the nation’s resources to reorganise a session for few candidates who missed the exams due to their personal recklessness.

He also warned that UTME is not a school-based examination, as such, JAMB would not be responsible for any failure caused to candidates who registered through their secondary schools who either deliberately or due to logistics challenges could not get the candidates to meet their requirements.

The JAMB Registrar reiterated that UTME results cannot be allowed to be valid for more than a year, describing it as a ranking examination, and not an achievement examination that can be kept for a long time.

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Abuja Update

Escalating rivalry among Zamfara bandits, organisations threatens peace efforts

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In the heart of Zamfara State’s ongoing security crisis, a disturbing escalation in tensions between rival bandit groups has brought the region to the brink of further violence.

The standoff, marked by dire warnings and threats of lethal reprisals, underscores the complex and volatile dynamics at play within the criminal underworld of the state.

According to intelligence sources obtained by Zagazola, a platform specialising in regional security updates, four of the most feared bandit gangs have emerged as central players in the escalating conflict. These groups, each vying for dominance and control over lucrative criminal enterprises, have demonstrated a steadfast rejection of peaceful coexistence, opting instead for a combative stance against one another.

The latest chapter in this saga unfolded on Saturday, April 14 when representatives from three of the four factions convened at Usu village in Birnin-Magaji Local Government Area to explore the possibility of a peace agreement. Notably absent from the gathering was the Bello Turji faction, signaling a clear defiance of the reconciliation efforts.

Leading the negotiations were the leaders of the Alhaji Shingi gang, represented by Ado Aleru, the Kachalla Halilu faction, represented by Bello Tagoje, and the Gwaska group, represented by a coalition including Ardo Na-shawari, Alhaji Ali, Alhaji Shamago, and the youngest son of Dan Karami Gwaska. The absence of Bello Turji, however, cast a shadow of doubt over the prospects of achieving a comprehensive peace deal.

The deliberations were punctuated by stern warnings and ultimatums, with the Shingi gang, led by Ado Aleru, issuing a chilling threat to the Gwaska group. They forbade the Gwaska faction from setting foot in any village other than Tsanu and Rukudawa in Zurmi Local Government Area, accompanied by a stern warning of lethal consequences should they defy this directive.

To fortify their position, the three bandit leaders strategically deployed their forces in the north of Tsafe, signaling readiness for potential hostilities. In addition to territorial demands, the Shingi gang presented a list of conditions for peace, including the restitution of stolen livestock and firearms, as well as compensation for damages inflicted upon rival factions.

Despite the Gwaska group’s tentative agreement to the terms proposed by the Shingi gang, the obstinate stance of Bello Turji cast a pall over the prospects of lasting peace. Disregarding the overtures of reconciliation, Bello Turji reaffirmed his commitment to pursuing Dan Karami Gwaska, signaling a continuation of the cycle of violence that has plagued the region.

As Zamfara State hangs on the brink of further bloodshed, the efficacy of peace negotiations remains uncertain. With the specter of armed conflict looming large, the fate of countless innocent lives hangs in the balance, underscoring the urgent need for a concerted effort to quell the rising tide of violence and instability in the region.

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Abuja Update

Matters arising from new electricity tariff in Nigeria

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By Tolu Ogunlesi

Quite sad (but not surprising) that it’s the ‘freezer’ comment that totally dominated the headlines from yesterday’s Electricity press briefing. There was a lot more that was said, that’s useful to know, as background and basis for conversation and debate.

If you want to know what else HM Bayo Adelabu said, I took some notes – the comments below are attributable to him (and to the NERC Vice Chair, who also spoke).

[The important background to all this is that for now it’s ONLY Band A consumers who are affected by the 3-fold Tariff Increase rolled out this week. There are 5 Tariff Bands in all, A to E. Band A are the ones guaranteed a minimum of 20 hours of supply per day]

  1. Prior to tariff change, the Federal Government was subsidising 67 percent of the total cost of generating, transmitting, and distributing electricity in Nigeria.

Nigerian Electricity Regulatory Commission Vice Chair added: If you isolate Generation, that 67 percent figure rises considerably. For example, in January 2024, the total power generation invoice issued to DisCos was 240 Billion Naira, but the Discos were asked to pay only 24 Billion of this = 10 percent, which means 90 percent of the generation cost was being borne by FGN, as a subsidy.

  1. Total estimated electricity subsidy cost (on FGN) for 2024, without tariff adjustment: ~2.9 Trillion Naira (~240 Billion per month)
  2. Total estimated subsidy cost for 2024, after tariff adjustment: ~1.4 Trillion Naira (~113 Billion per month)
  3. The Tariff increase has also been accompanied by a reduction in the number of Band A “feeders” — i.e. feeders guaranteed to supply a minimum of 20 hours per day — across the country. There were previously over 1,000 Band A feeders; now, only 481 are classified as Band A.
  4. There are about 12 million electricity “customers” in Nigeria (please try and understand this carefully before jumping to make comments. It doesn’t mean 12 million ‘people’, it means 12m ‘meter-able’ consumption points, e.g households, businesses, etc).
  5. Band A accounts for = 15% of the 12 million electricity customers = approx 1.8m. The remaining >10m customers will continue to enjoy government subsidies on electricity consumption.

(Related to this, I’ve seen data elsewhere that suggests that 70 percent of the revenues collected in 2023 came from Band A – worth confirming that figure).

  1. Of the 12 million customers, only a little over 5 million are currently metered. Which means a metering gap of over 6 million.
  2. The subsidised pricing regime will continue in the short term, with a “transition plan” to attain full “cost-reflective” pricing over the next 3 years.
  3. The restricting of the Tariff increase to Band A is meant to serve as a “proof of concept”; i.e. kicking off with a Band that has the “capacity and willingness” to pay for 20 to 24 hours of daily supply.
  4. The pricing change will help address some of the liquidity issues in the industry; restore a “line of sight” for recovery of investment, and make it more “bankable.”
  5. There is a huge infrastructure deficit in the power sector; obsolete equipment at all levels (this is where the Minister cited the example of some equipment still carrying ECN branding; ECN has been defunct for more than 50 years now)—and vandalisation of everything from gas pipelines to grid towers etc.
  6. If DisCos supply less than 20 hours to Band A consumers, there must be sanctions and consequences. “We will not shy away from our responsibilities…”

(On this note, NERC Vice Chair added that under the old Power Sector Reform Act, the powers of NERC to sanction were limited, and fines for DisCos were outdated (he cited fines as low as N10,000 per day). But with the new Act signed by PBAT—see No. 15 below—NERC now has expanded regulatory and sanctions powers. Vice Chair cited example of 2018 when NERC suspended IBEDC Board, and Board went to Court and got the suspension set aside, vs 2024 when NERC was able to successfully dissolve the Board of KEDC).

  1. The new Tariff Regime for Band A means there’s now an incentive for DisCos to work to migrate other Bands to Band A, so that they can supply them Band A threshold, and charge Band A tariffs.
  2. Energy consumption management by consumers has to become a priority. This is where the ‘freezer’ example (that has gone viral) was cited. Yeah, def not the best example to use, as we’ve seen from the distracting fallout, but the larger point about more responsible usage stands.
  3. Minister mentioned ongoing efforts to improve electricity supply:

—The new Electricity Act signed by PBAT (which repealed the Electric Power Sector Reform Act of 2005) has now fully decentralised the sector, and empowers subnational governments for regulation and licensing.

—Renewable energy investments, led by REA

—New power plants like recently-completed Zungeru Hydropower (700MW)

—Investments in new lines, new injection substations, new transformers

—Closing the metering gap.

—Communications and advocacy

  1. “The journey of a thousand miles stand with a single step, in the right direction. This one is in the right direction.” — Bayo Adelabu

Ogunlesi is a Policy Communication Expert and former Special Assistant on Digital Communication to President Buhari

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