Author: Businessam Staff

Kenneth Afor  with agency report.

Chinese phone maker, Huawei  Tuesday announced its financial earnings for the first half of 2019 with a 30 percent increase amid sanctions from the United States of America (USA) over threat to national security at the early period of the year.

Early this year, the US blacklisted the company restricting suppliers from taking orders from the world’s second largest smart phone maker without prior notice.

The Asian phone making giant had secured critical supplies through its carefully selected teams to keep productions going, according to a news wire report monitored by businessamlive.com

Huawei’s revenue growth of 30 percent in the first half of the year is a pick up from 39 percent in the first three months of 2019 but performed better this period in 2018, the report stated.

The magic from the company that resulted in the surge of the company’s revenue was the aggressive move it made to secure contracts for fifth-generation networking equipment before the sanction from US.

Following the sanction, the company had earlier made a remark of cutting its revenue expectation for the year, adding that it did not envisage such move from the US on placing  a sanction on its products in the US. The company has since remained silent on US’s claim.

The European Union would retaliate with extra duties on 35 billion euros ($39.1 billion) worth of U.S. goods if Washington went ahead with tariffs on EU cars, the bloc’s trade chief said on Tuesday.

“We will not accept any managed trade, quotas or voluntary export restraints and, if there were to be tariffs, we would have a rebalancing list,” European Trade Commissioner Cecilia Malmstrom told a committee of the European Parliament.

“It is already basically prepared, worth 35 billion euros. I do hope we do not have to use that one,” she continued.

BUA Group has been commended by the National Sugar Development Council (NSDC) for its investment in the Nigeria sugar industry. Latif Busari, the executive secretaryof the council made the commendation at the maiden conference of the Sugarcane Technologies Society of Nigeria (STSN) in Abuja.

Busari who said the NSDC was committed to achieving self-reliance in sugar development as contained in the sugar development masterplan for the country, expressed satisfaction with the progress at BUA Group’s integrated sugar mill in Kwara State saying such effort should be emulated by other players.

“With the pace at which BUA Group is going with its Sugar mill in Kwara state, we are quite confident that the backward integration plans to raise local sugar production to attain self-sufficiency, create large number of employment opportunities and to contribute to production of ethanol and generation of electricity are realistic and achievable in the shortest possible time”,  he said.

He also commended BUA’s integrated sugar plantation in Lafiagi which has an ethanol production plant capacity of 20 million liters per annum, generate 35megawatt of electricity both for factory and national grid consumption and refined 200,000 metric tonnes of sugar annually.

Speaking on the “Challenges of emerging sugar companies in meeting the sugar demand of Nigeria”,Kabiru Rabiu, the group executive director, BUA Group, identified huge capital cost, conflicts in land acquisition, insecurity, infrastructure deficit, water and environmental issues, lack of synergy among regulatory agencies and skill deficit as key factors militating against the growth of the Sugar industry and called the Federal Government to double its efforts in addressing these deficiencies.

Kabiru furthermore noted that the US$300 millionintegrated LASUCO Sugar Company in Lafiagi,Kwaraupon completion in 2020will be the biggest integrated Sugar plantation in Nigeria.

According to Kabiru, “the FG through the NSDC can help by the creation of Sugar Hubs, Sugar sector Intervention Fund, Infrastructure Gap Bridging, direct Land Acquisition, synergy among various Stakeholders and building capacity among the industry regulators”.

Boris Johnson, the Brexiteer who has promised to lead Britain out of the European Union with or without a deal by the end of October, will replace Theresa May as prime minister after winning the leadership of the Conservative Party on Tuesday.

His convincing victory catapults the United Kingdom towards a showdown with the EU and towards a constitutional crisis at home, as British lawmakers have vowed to bring down any government that tries to leave the bloc without a divorce deal.

Johnson, the face of the 2016 Brexit referendum, won the votes of 92,153 members of the Conservative party, almost twice the 46,656 won by his rival, Foreign Secretary Jeremy Hunt.

May will leave office on Wednesday after going to Buckingham Palace to see Queen Elizabeth, who will formally appoint Johnson before he enters Downing Street.

“We are going to get Brexit done on Oct. 31, and we are going to take advantage of all the opportunities it will bring in a new spirit of ‘can do’,” Johnson, 55, said after the result was announced.

“Like some slumbering giant, we are going to rise and ping off the guy-ropes of self-doubt and negativity.”

Johnson said the mantra of his leadership campaign had been to “deliver Brexit, unite the country and defeat (opposition Labour leader) Jeremy Corbyn – and that is what we are going to do”.

Within half an hour of his victory, U.S. President Donald Trump had tweeted his congratulations, adding: “He will be great!”.

The men have recently been complimentary about each other – yet Trump is one of the many world leaders, including Russian President Vladimir Putin and Turkish President Tayyip Erdogan, about whom Johnson has previously made derogatory remarks. In 2015, he accused Trump, then a candidate for office, of “stupefying ignorance” that made him unfit to be president.

The victory for one of Britain’s most flamboyant politicians places an avowed Brexit supporter in charge of the government for the first time since the United Kingdom voted to leave the EU in the shock 2016 referendum.

But Johnson – known for his ambition, untidy blond hair, flowery oratory and cursory command of policy detail – takes office at one of the most tumultuous junctures in post-World War Two British history.

The pound has fallen sharply in recent weeks on fears of a no-deal Brexit, and stands near $1.24 GBP=D3, around its lowest level for two years. With Johnson’s win already priced in, it was little changed on Tuesday. 

The 2016 Brexit referendum showed a United Kingdom divided about much more than the European Union, and has fuelled soul-searching about everything from regional secession and immigration to capitalism, the legacy of empire, and modern Britishness.

Godwin Emefiele, governor of the Central Bank of Nigeria, has confirmed that the bank will restrict forex for the importation of milk.

Emefiele made this known on Tuesday while addressing journalists at the end of the two-day meeting of the monetary policy committee of the bank.

He said $1.2 billion to $1.5 billion is spent every year to import milk.

Details later…

Oil slipped to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook.

Iran’s capture of a British oil tanker last week sparked worries about supply disruptions in the Strait of Hormuz, through which about a fifth of the world’s oil flows, prompting crude to rally on Monday.

But oil has since pared some gains. Brent crude LCOc1 fell 5 cents to $63.21 a barrel by 1334 GMT on Tuesday.

U.S. West Texas Intermediate crude CLc1 was up 16 cents at $56.38.

“The response of oil prices to the seizure of a British oil tanker by armed Iranian forces near the Strait of Hormuz has been amazingly muted so far,” said Carsten Fritsch, analyst at Commerzbank.

“It appears that the majority of market participants are convinced that there will be no open conflict between the West and Iran,” he said.

The tensions come as the United States aims to cut off Iran’s oil exports and against the backdrop of supply cuts led by the Organization of the Petroleum Exporting Countries since the start of the year to prop up prices.

As part of U.S. efforts, Washington has imposed sanctions on Chinese state-run energy company Zhuhai Zhenrong Co Ltd for allegedly violating restrictions imposed on Iran’s oil sector.

Despite lower Iranian exports and OPEC’s voluntary supply curbs, oil supply is exceeding demand due to strong growth in output from the United States and other non-OPEC producers, according to the International Energy Agency.

A weaker outlook for oil demand because of slowing economic growth has weighed on prices, which are still up by 18% in 2019 helped by the OPEC-led supply pact.

“Although prices had been driven by supply developments in the first half of the year economic considerations are making oil bulls careful this month,” said Tamas Varga of oil broker PVM.

Goldman Sachs lowered its 2019 oil demand projection on Sunday, joining other forecasters such as the IEA and OPEC in trimming its outlook for fuel use. [IEA/M]

Oil may gain further support from expectations of another drop in U.S. crude

Babatunde Fashola, Rotimi Amaechi, Ogbonnaya Onu and Chris Ngige are some of the first term ministers President Muhammadu Buhari is proposing to return as ministers for the second term of his government.

A 43-strong list of persons read on the floor of the senate by Ahmed Lawan, the president of the the senate, is as follows:

Ikechukwu Oga (Abia)
Mohammed Musa Bello (Adamawa)
Godswill Akpabio (Akwa Ibom)
Chris Ngige (Anambra)
Sharon Ikeazu (Anambra)
Adamu Adamu (Bauchi)
Maryam Katagum (Bauchi)
Timi Sylva (Bayelsa)
George Akume (Benue)
Mustapha Baba Shehuri (Borno)
Goddy Agba (Cross Rivers)
Festus Keyamo (Delta)
Ogbonnaya Onu (Ebonyi)
Osagie Enakhire (Edo)
Clement Agba (Edo)
Adeniyi Adebayo (Ekiti)
Geofrey Onyeama (Enugu)
Ali Issa Fantami (Gombe)
Emeka Nwajiuba (Imo)
Suleiman Adamu (Jigawa)
Zainab Ahmed (Kaduna)
Mohammed Mahmoud (Kaduna)
Sabo Nanunu (Kano)
Bashir Salihi Magashi (Kano)
Hadi Sirika (Katsina)
Abubakar Malami (Kebbi)
Ahmadu Tijani (Kogi)
Lai Mohammed (Kwara)
Gbemisola Saraki (Kwara)
Raji Fashola (Lagos)
Nimbe Momora (Lagos)
Muhammed Abdullahi (Nasarawa)
Zubeira Dada (Niger)
Olamilekan Adegbite (Ogun)
Tayo Alasoadura (Ondo)
Rauf Aregbesola (Osun)
Sunday Dare (Oyo)
Pauline Tallen (Plateau)
Rotimi Amaechi (Rivers)
Muhammadu Maigari Dingyadi (Sokoto)
Saleh Mohammed (Taraba)
Abubakar Aliyu (Yobe)
Sadiya Umar Farouk (Zamfara)

The list is said to contain 43 nominees, one each for Nigeria’s 36 states and Federal Capital Territory of Abuja, as well as one each for the six geopolitical zones

The list was sent via an executive letter to the legislature arm of government overnight for confirmation.

President Buhari had earlier spoken of being under pressure on compiling the list, but effectively said he would only work with people he personally knows unlike the first term when he picked people based on recommendations.

The Nigerian economy has taken a backseat since the elections finished in March and expectations were high that the president would make haste in appointing his ministers this term unlike the six months he took to do so in the first term.

Interswitch, a Nigerian-based payments platform, has hired financial advisers to resume plans for listing on the Nigerian Stock Exchange (NSE) and the London Stock Exchange.

JPMorgan Chase & Co., Citigroup Inc. and Standard Bank Group Limited are among the firms working on an initial public offering (IPO), which may value the financial technology company at $1.3 billion to $1.5 billion, according to Bloomberg report.

According to the report, lnterswitch is reviving its plans for an initial public offering, via a dual listing on the Nigerian Stock Exchange and London Stock Exchange later this year.

Interswitch, owned by private equity firm, Helios Investment Partners, has engaged with banks in recent weeks after a thwarted IPO attempt two years ago.

The resumed plan by Interswitch to list on NSE, is coming on the heels of MTN listing earlier in May, followed by Airtel, thus increasing the market capitalisation of the Nigerian Stock Exchange by about N3 trillion.

Representatives for Helios, Interswitch, JPMorgan and Citigroup declined to comment, and Standard Bank didn’t immediately respond to a request for comment outside of regular business hours, according to Bloomberg.

In 2015, lnterswitch announced plans for a dual listing on the Nigerian Stock Exchange and London Stock Exchange, a move that would have made it the second Nigerian company, after Seplat to have a dual listing.

However, the ensuing exchange crisis affected the company’s plans resulting in the listing being suspended.

lnterswitch planned to list in the summer of 2017 but canceled the plans in December 2016 due to exchange rate crisis.

Foreign investors targeting for the listing had developed cold feet following the currency crisis making it difficult for the company to proceed.

The CEO of lnterswitch, Mitchell Alegbe had in 2017, assured stakeholders that plan to list the company shares were still on the table.

The resumed plan to list its shares this year, confirms earlier report of the FinT.

The naira on Monday gained 50 Kobo to trade at N358.5 to the dollar at the parallel market in Lagos, slightly stronger than N359 traded on Friday.

The pound sterling and the euro closed at N458 and N403 respectively.

The naira traded at N360 to the dollar at the Bureau De Change (BDC) segment, while the pound sterling and the euro exchanged at N458 and N403, respectively.

Trading at the investors window saw the naira closing at N361.48 to the dollar as market turnover stood at 231.92 million dollars.

The News Agency of Nigeria (NAN) reports that the naira had been relatively stable at the parallel market due largely to the interventions of the CBN.

Activities at the market, however, remained slow on Monday as traders await the outcome of the Monetary Policy Committee (MPC) meeting of the CBN.

Only 12 of the ministers that served in the first term of the President Muhammadu Buhari government are likely to return as ministers as the president finally sent his ministerial list to the senate Monday night.

The list is said to contain 42 nominees, one each for Nigeria’s 36 states and one each for it’s six geopolitical zones. 

The list sent via an executive letter to the legislative arm of government is expected to be read by the upper chamber today. It would then be clear who the president has chosen to work with, in this second term of his administration.

He had earlier spoken of being under pressure on compiling the list, but effectively said he would only work with people he personally knows unlike the first term when he picked people based on recommendations.

The Nigerian economy has taken a backseat since the elections finished in March and expectations were high that the president would make haste in appointing his ministers this term unlike the six months he took to do so in the first term.