P&G to stop manufacturing operations in Nigeria

TODAY’S MENU

• Procter & Gamble to stop manufacturing operations in Nigeria; reverts to imports only

• NIBSS Raises Alarm on Unauthorized Financial Firms Impersonating Deposit-Taking Institutions

• FBN Holdings Achieves Milestone with N1.06 Trillion Market Capitalization

• Mastercard Africa Growth Fund Injects $27 Million into Chui Ventures, VestedWorld, and SME Impact Fund

• 5 African Startups that shut down in 2023

• Bitcoin surges $44,000 for the first time since April 2022

REGULATION

NIBSS Raises Alarm on Unauthorized Financial Firms Impersonating Deposit-Taking Institutions

The Nigeria Inter-Bank Settlement System (NIBSS) has expressed concern over unlicensed financial service entities assuming the role of deposit-taking institutions, signaling an enhanced regulatory focus in response to increased instances of fraud and customer verification challenges within the payment sector.

“Unlicensed financial service entities” refer to companies or entities that operate in the financial services sector without the necessary regulatory licenses or approvals from relevant financial authorities.

These entities may engage in activities such as accepting deposits, processing payments, or providing other financial services without adhering to the legal and regulatory frameworks set by the governing authorities.

NIBSS, in a memo to banks and fintechs, warned against listing companies with switching, payments processing, and superagent licenses as beneficiaries for bank transfers, clarifying that these are non-deposit-taking entities.

This advisory was explicitly to highlight that these entities lack the authority to accept deposits.

To simplify, NIBSS is urging traditional banks to disconnect these entities, particularly payment solution services primarily represented by fintechs, from their NIP (NIBSS Instant Payments) transfer outward portals, as their licensing does not authorize them to hold customer funds.....…….read more

BUSINESS

Procter & Gamble to stop manufacturing operations in Nigeria; reverts to imports only

In a strategic move, consumer goods giant Procter & Gamble (P&G) has revealed its intention to dissolve on-ground operations in Nigeria and transition the country into an import market. The announcement was made by the Chief Financial Officer of the group, Andre Schulten, during his presentation at the Morgan Stanley Global Consumer & Retail Conference.

Mr. Schulten highlighted the challenges of operating as a dollar-denominated organization in Nigeria, citing the macroeconomic realities of the country as a key factor influencing P&G’s decision. He stated, “It is difficult for us to operate because of the macroeconomic environment. So with that in mind, we are announcing a restructuring program with the intent to adjust the operating model and portfolio, ensuring that we maintain the discipline that has brought us to this point.”

The restructuring program will primarily focus on Nigeria and Argentina. P&G plans to transform Nigeria into an import-only market, effectively dissolving its on-ground footprint in the country and reverting to an import-only model. The company believes this strategic decision will enable it to concentrate on markets with the highest potential....…….read more

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STOCK MARKET

FBN Holdings Achieves Milestone with N1.06 Trillion Market Capitalization

In a notable achievement, FBN Holdings, one of Nigeria’s longstanding banks, reached a significant market capitalization milestone, surging to N1.06 trillion on Wednesday. This milestone follows a week of robust growth, with FBNH’s share price experiencing an impressive approximately 10 percent increase.

With this accomplishment, FBN Holdings officially joins the prestigious league of SWOOTs, an acronym denoting Stocks Worth Over One Trillion Market Capitalization. As of 10:34 am on Wednesday, FBNH gained 9.91%, or N2.65, reaching N1.056 trillion in market capitalization.……read more

STARTUPS

5 African Startups that shut down in 2023

2023 has been a tough year for African startups. A global economic downturn led to a decrease in venture capital funding for startups worldwide, impacting African startups as well. Funding for African startups dropped significantly, with estimates suggesting a decline of 50% or more compared to 2022. This decline made it difficult for startups to raise the capital they needed to grow and scale their businesses. This led to some startups shutting down. However, some of the startups shut down because of funds mismanagement.

We look at 5 African Startups - Dash, 54Gene,Sendy, WhereIsMyTransport and Vibra - that shut down in 2023 here

INVESTMENTS

Mastercard Africa Growth Fund Injects $27 Million into Chui Ventures, VestedWorld, and SME Impact Fund

In a significant move to bolster impact investment in Africa, the Mastercard Africa Growth Fund has announced substantial investments totaling $27 million in three prominent investment firms: Chui Ventures, VestedWorld, and SME Impact Fund.

Chui Ventures secures $9 million from the fund, VestedWorld receives $10 million, and SME Impact Fund is granted $8 million, marking a pivotal step in advancing impact-driven initiatives on the continent. This latest injection of funds brings the total number of recipients supported by the Africa Growth Fund to five…….read more

OTHER STORIES

• Airtel Africa, a leading telecommunications provider on the continent, has announced the launch of Nxtra by Airtel, a groundbreaking data centre business aimed at addressing the escalating demand for reliable and sustainable data centre capacity in Africa.…..read more

• X.AI, an artificial intelligence venture spearheaded by Elon Musk, has lodged a filing with the SEC to generate up to $1 billion through an equity offering…..read more

• Bitcoin surges $44,000 for the first time since April 2022, driven by ETF optimism….read more