Impact Investing: Nigeria, renewable energy and the journey thus far

It has been established that Nigeria is among the countries in Africa with the lowest electricity consumption rates per capita. According to the United Nations, Nigeria has a population of approximately 195 million people with a population growth rate of 2.6 per cent. The World Bank estimates Nigeria’s installed electricity generation capacity from both hydro and thermal sources at 12,522 Megawatts. This implies a per capita electricity generation capacity of 64.22 Watts. This compares with South Africa that has a per capita electricity generation capacity of 839.29 Watts. South Africa’s population is projected at close to 56 million and the country has a power generation capacity of 47 thousand Megawatts. Worse still, the electricity generation sources are operating at 55 per cent capacity utilisation as millions of Nigerians are left yearning daily for electricity to power their lives in various ways. Given that electricity is at the heart of almost ...
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Nigeria, Africa’s economic powerhouse, is the second largest beer market in the continent. With an annual beer consumption of about 16 million hectolitres according to Morgan Stanley, a foremost investment firm, Nigeria’s per capita beer consumption is about 10 litres per annum compared to a global average of 35 – 40 litres. For more than two decades, the country’s brewery landscape has been dominated by Nigeria Breweries (NB), a subsidiary of Heineken, the Dutch brewery giant, and Guinness Nigeria Plc, a subsidiary of Diageo. Other brewers such as International Breweries, Intafact Brewery, Champions Brewery, and Pabod Brewery are also looking to have a share of the industry’s action. The combined market capitalization of NB, Guinness and International Breweries on the Nigeria Stock Exchange (NSE) as at 9th April 2018 stood at N1,678 billion. The push for brand presence: riding the boat of Marketing Expenses Performance in the brewery industry has mirrored ...
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…As Federal Government incapable of fulfilling obligations to the Health Sector… Over the past decade, less than 7 percent of Nigeria’s annual budget has been allocated to healthcare. At no time in the last decade has government budget met the agreed budgetary provision of the Abuja Declaration of 2001, which recommended that at least 15 percent of annual budgets of signatory countries should be devoted to healthcare on the African continent. For instance, in 2013, the Federal government budgeted 270 billion Naira for the health sector, representing 5.5 percent of the federal budget. In 2014, the federal government budgeted N216.40 billion representing 4.4 percent of the national budget, this marked a 20.73 percent drop in the actual value of the health budget and in its share of the national budget. The health budget in 2015 was 237 billion Naira and about 5.5 percent of the national budget of N4.36 trillion ...
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Deposit money banks, microfinance banks and other players in the financial industry have different ways of influencing economic growth. This is because one of the fundamental roles of financial intermediaries such as the aforementioned institutions is to determine the amount of credit to the economy and distribute such resources to economic agents that can best utilise them. As the main source of credit to the private sector, the banking sector has the mechanism to mobilise financial resources for productive investment needed for the realisation of the desirable economic growth path, and this implies that an efficient banking system makes extensive contribution to a nation’s economic growth through credit to the private sector. According to the National Bureau of Statistics (NBS), the total banks’ credit to private sector trended downward by 2.34 per cent to N15.74 trillion in the fourth quarter of 2017 from N16.12 trillion in fourth quarter of 2016, ...
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BusinessDay Research & Intelligence Unit (BRIU) is delighted to present the results of our quarterly Digital Media Consumer Survey which reflects the views of 925 consumers on their usage and preferences of the digital media space in Nigeria ...
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• Adds 10% market share in 7 years • As brewery sector races towards oligopoly Kelvin Umweni Nigerian Breweries (NB), a leading brewing giant, has grown its market share of the brewery industry in Africa’s largest economy by 10 percentage points between 2010 and 2016, according to a report from the BusinessDay Research and Intelligence Unit (BRIU). The BRIU entitled ‘The Nigerian Brewery Industry Snapshot’ revealed that while NB’s share of the market grew from 63 per cent in 2010 to 73 per cent in 2016 as the market share of Guinness Nigeria Plc, its biggest rival, declined from 37 per cent in 2010 to 23 per cent in 2016. The country’s brewery industry has been dominated by the two giants for more than two decades. This situation is set to change, however, with the entrance of SABMiller, a South Africa-based brewer. “SABMiller has been performing relatively better since its ...
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BusinessDay published the maiden edition of the Most Innovative Companies & Institutions in Nigeria Report 2018. The Report showcases the Companies and Institutions that contributed immensely to the growth of their customer-base, bottom-line, overall organisational growth, as well as the socio-economic development of our country via Innovation. The report profiles the Organisations that are advancing the frontiers of innovation in the Country spurring transformations in new markets and disrupting existing industries. Innovation is a prerequisite for corporate survival and the lifeblood of sustainable business growth and development globally. Organisations that innovate successfully are those that drive the future of the sectors or markets in which they play and indeed the overall economy they are located. According to the Economist “Innovation in Africa is helped by a peculiar confluence of economic and political circumstances.” The World Economic Forum elaborated further in its article published in January 2016 titled: “Is Africa leading ...
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FBN Capital Asset Management has topped the chart in the BusinessDay Research and Intelligence Unit (BRIU) transparency index, having scored 73 points out of a possible 100 points, ahead of AXA Mansard that came second with 69 points. Vetiva Fund Management scored 65 points to rank third on the chart. The BRIU report entitled ‘Nigerian Mutual Fund Managers Transparency Report‘ evaluated fund managers registered with the Securities and Exchange Commission (SEC), and ranked them based on various criteria: whether information about the fund is available online and on the fund managers’ website, how recent the information is, and the extent of information provided. Despite the reported growth in Nigeria mutual fund market, the report showed that most Nigerian largest fund managers lack full transparency. This means that investors lack information to independently estimate the risk and return characteristics of their portfolio. According to the BRIU transparency report, 58 funds, representing ...
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A BusinessDay Research and Intelligence Unit (BRIU) report that captured the code of banks corporate governance from 14 Nigerian banks showed that all the banks reviewed met the minimum standard of the Central Bank of Nigeria (CBN’s) code of corporate governance. The report tittled ‘Nigerian Banks’ Corporate Governance’ looked critically into the code of conduct in banks as regards the size of their boards, whether the bank operates a unitary or two-tier Board system, proportion of women on the board, percentage of non-executive directors on the board, level of attendance of board meeting by members, percentage of independent directors at board meetings, Size of Risk and Audit Committees and Level of attendance at Risk and Audit Committees meetings. The banks reviewed include: Stanbic IBTC, United Bank of Africa (UBA), Union Bank, Unity Bank, Wema Bank, Eco Bank, First Bank of Nigeria (FBN), First City Monument bank (FCMB), Sterling Bank, Diamond ...
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BusinessDay presents insights from the Leading HMOs in Nigeria. These HMOs have contributed significantly to policy advocacy, regulatory framework, healthcare delivery and the development of the nation’s health insurance market. The five HMOs are Avon HMO Limited, AIICO Multishield, Healthcare International, Hygeia Nigeria and Total Health Trust (THT). The Report contains interviews with these major players on the issues, challenges, trends, and outlook for the Healthcare and Health Insurance Industry in Nigeria. This publication also contains insightful articles, as well as recommendations for the sector. BusinessDay also plans to publish a larger report covering the entire spectrum of the health market in Nigeria and titled “Health Financing in Nigeria Report: Issues, Trends & Outlook.” Nigeria’s population is estimated at 186 million and is growing at 3 percent annually, with more than half of population under 30 years of age. The size and composition of Nigeria’s population makes it a vibrant ...
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