Air Peace Renders Dozens of Pilots Jobless, Here’s Why

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August 4, 2020

Air Peace, a Nigerian private-owned airline, has sacked no less than 70 pilots across its fleet and has reduced its staff salaries by up to 40 percent.

Punch reports that a member of the National Association of Aircraft Pilots and Engineers (NAAPE), who craved for anonymity made this disclosure.

Why the sacking of pilots

According to the management of the airline, the pilots’ disengagement was due to the devastating impact of the COVID-19 pandemic.

Describing the sacking of the pilots as rightful decision, Stanley Olise, the Spokesperson of Air Peace, in a statement admitted that the decision was a painful one.

His statement read in part; “The airline cannot afford to toe the path of being unable to continue to fulfill its financial obligations to its staff, external vendors, aviation agencies, maintenance organisations, insurance companies, banks, and other creditors, hence the decision to restructure its entire operations with a view to surviving the times.

“The pandemic has hit every airline worldwide, so badly that it has become very impossible for airlines to remain afloat without carrying out an internal restructuring of their costs.

“Anything short of what we have done may lead to the collapse of an airline as could be seen in some places worldwide during this period. Therefore, we decided to review the salaries being paid to all staff.

“The new salaries reflect a zero per cent-40 per cent cut of the former salary, depending on the salary grades of every staff. Even after the cuts, it was obvious that for us to be able to sustain our operations and survive the times, some jobs must inevitably have to go.

“Air Peace has never, for one day, ever owed salaries to its workers in its almost six years of existence, pilots inclusive. Rather, the management of Air Peace has always been known to be increasing salaries of its employees periodically, without being prompted by staff.

“In fact, in one fell swoop, Air Peace increased the salaries of pilots by over 100 per cent in one day. Our salaries have always been paid even before the end of the month in the last five years.

“The decision is a reflection of the negative impact of the pandemic on airlines and aviation worldwide.

“We are in trying times. Even the biggest airlines in Europe, America, Middle East, Asia, Australia and, indeed, Africa, are all either slashing jobs and cutting salaries in order to remain afloat or are shutting down.

“Air Peace is not immune from these challenges.”

Here’s what we think….

It is an open secrete that this is a challenging time for private companies and business owners at large. As it is in the case of Air Peace, the aviation industry has practically not been operating in its full capacity in a global scale, due to the lingering COVID-19 pandemic partial lockdown.

As companies like Air Peace are laying off their staff, it is pertinent for them to ensure fairness and equity.

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Shoprite, 2 Other South African Retailers That Have Left Nigeria

By

unmask

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August 3, 2020

Shoprite, one of Africa’s foremost retailers, has called it a quit in Nigeria after 15 years of operations in the country.

Disclosing its decision to abandon Nigeria’s consumer market, Shoprite stated that it’s considering a potential divestment from its Nigerian operation – Retail Supermarkets Nigeria Limited.

“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” the company’s latest operational and voluntary trading update, in which this disclosure was made, read in part.

Shoprite, not the first to leave…

Sadly, Shoprite is not the first South African retailer to abandon Nigeria. Aside from Shoprite, Mr Price, and Woolworths, had left the country in the past years.

Recall that in 2013, CEO, Woolworths Holdings Ltd. (WHL), Ian Moir, announced the South African food-and-clothing retailer’s plan to close its three stores in Nigeria.

Saying the decision to leave was due to high rental costs, duties, and difficulties with its supply chain, Moir said; “When an investment no longer generates viable returns, difficult decisions have to be made to contain costs. The Woolworths clothing and general merchandise business in Nigeria has not been successful, despite several attempts to improve performance.”

Similarly, Mr Price stated that it was leaving Nigeria. Having shuttered four of its five stores in the country, and expects to close the last one before the year (2020) runs out, Mr Price revealed that its decision to quit its Nigerian operations was because of Nigeria’s weak economic growth, difficulties with repatriating funds, and local procurement.

The naked truth

With Mr Price, Shoprite, and Woolworths’ exits in Nigeria, it has become an open secrete that sustainability in the country’s business environment is almost impossible.

Glaring consequences

If businesses find it difficult to survive in a country, particularly multinationals, there are always consequences, and they include the followings:

Low job creation
Rising unemployment,
Ring youth vices
Weakening consumer demand

Our message to the Nigerian government

The future of economic development in Nigeria is solely dependent on the private sector. And as a result, we strongly believe that President Muhammadu Buhari must begin to put in place policies that could foster a more accommodating business environment.

Some of these policies would revolve around improving land accessibilities, eradication of corruption in regulatory bodies and judicial systems, vivid business regulations, and improving the naira value.

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Revealed: This Is Why FG Handed Over National Arts Theatre To CBN

By

unmask

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August 2, 2020

There is a reason as to why the Federal Government handed over the country’s National Arts Theatre to the Central Bank of Nigeria (CBN), and Bankers’ Committee, for renovation.

According to Lai Mohammed, the Minister of Information and Culture disclosed that the national edifice was handed over as a result of financial difficulty.

The minister maintained that the President Muhammadu Buhari-led administration, does not have the money to renovate the national theatre. Thus, the handing over became a neccessity.

In an interview with Radio Nigeria, Mohammed admitted that for over 43 years the national theatre has been suffering due to lack of funding from the government.

His words; “The handover of the national theatre to the CBN is one of the many steps by government to reposition the creative industry.

“For more than 43 years, there has been really no serious renovation as a result of lack of fund by the government and the edifice is in a sorry state. Several attempts to privatise or concession the edifice either before or during my tenure as minister has failed, and the truth of the matter is that government has no money to embark on the renovation.

“Therefore, when the CBN made the offer, we saw it as a golden opportunity to return the national theatre to its glory days.”

Our backstory…

Unmask NG, in July 2020, reported that the national theatre had been handed over.

In what appeared to be a fraudulent move, the Federal Government has for the second time in less than a year, handed over the country’s National Arts Theatre to the CBN, and Bankers’ Committee, for renovation.

Prior to the latest handing over development, about nine months ago, precisely October 2019, the Federal Government handed over the National Theater, located in the Iganmu area of Lagos, to the CBN and Bankers’ Committee, for the same reason.

In a surprise turn of events, on Sunday, July 12, 2020, this same government repeated the same action, in a similar way.

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COVID-19: Elemelu Has A Message For Investors

By

unmask

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July 31, 2020

For Tony Elumelu, the Chairman of UBA Group and Heirs Holdings, there is no better time to invest in Africa than now.

As global economy is devastatingly hit by the lingering infectious disease, Elumelu advised investors to take advantage of the situation to invest in Nigeria, and other countries in Africa.

In an interview with Time, Elumelu pitched investors to put their bets on Africa’s economy for good returns.

His words; “Africa is a land of opportunity. Challenges exist in Africa, but we also have a huge return on investment. There’s no better time to make that bet than the time we live in.

“Today there’s more market stability than ever before and there’s a willingness and realization by African leaders that capital will come to where it’s welcome. So they’re trying to make an enabling environment in their markets and in their countries to attract foreign investments.”

The billionaire also noted that the COVID-19 pandemic has leavened economic opportunities in Africa, particularly in the continent’s banking sector. “In the banking business, there’s a whole transformation of banking heightened by COVID-19. Now you have less than 15% of our over 20 million bank customers across Africa transacting in the bank. Most of them are transacting online, which is about 85% of 20 million customers—that’s significant,” Elumelu explained.

Acknowledging that the odds, at the moment, may not in Africa’s favour, Elumelu insisted that hope is all that is needed to emerge from COVID-19’s economic dredge.

“The difference is having economic hope, the difference is always thinking positive and knowing that tomorrow will be better than today. Don’t let your economic aspirations die with COVID,” he added.

Elumelu is right….

If you are considering a long-term investments that will yield laudable returns, Unmask NG is of the opinion that looking at the current economic condition to put one’s money to work may be regrettable.

As a smart investor, your personal circumstances should dictate your timing of investments, not the current conditions of the economy. Interestingly, financial experts like Elumelu subscribed to this school of thought.

It is however pertinent to note that while investing through a pandemic may be counterintuitive, as far as investment is concerned, it is about time in the market, not timing the market.

Elumelu, a living testimony…

The highly-revered billionaire, in 1997, led a small group of investors to take over a financially-distressed commercial bank in Lagos.

Few years after the acquisition, the acquired bank was renamed Standard Trust Bank (STB). Subsequently, STB became one of the leading financial service firms in the country, after merging with UBA.

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Austin Avuru: His Retirement Plans and Other Things You Should Know

By

unmask

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July 30, 2020

Austin Avuru, the Chief Executive Officer (CEO) of Seplat Petroleum Development Company Plc, has exited the oil and gas company after 11 years. His exit will take effect from Friday, July 31, 2020.

Avuru made the disclosure of his exit in the company’s latest financial statement, where he confirmed Roger Brown as his successor

His words; “This is my final set of results as Chief Executive of the Company I helped to found ten years ago.

“I thank all my staff, past and present, for working to make Seplat a major force in Nigerian energy production. I hand a robust and successful company over to Roger Brown in the confidence that he and everyone at Seplat will make its second decade even more successful than its first.”

Although, he didn’t disclose his reason for exiting the company in his statement; Unmask NG understands that the exit was a move towards retirement.

His retirement plans…

In an interview with This Day two years ago, Avuru disclosed that he would be toeing a path by other billionaires like –Tony Elumelu.

“I will manage a small investment company, focusing on oil and gas upstream, real estate, capital market investment and agriculture,” he was quoted as saying.

Below are four things that you should know about Austin Avuru:

Avuru graduated from the University of Nigeria, Nsukka in 1980, with a degree in Geology.
In 1992, he returned to school, University of Ibadan precisely, to get a Postgraduate Diploma in Petroleum Engineering.
After 22 years of serving others, he founded his own oil and gas company, Platform Petroleum Limited, which later merged with A.B.C Orjiakor’s Shebah Petroleum Development Company, to become Seplat.
He is a former president of the Association of Petroleum Explorationists.

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Achina Microfinance Bank: Former MD Sentenced To Prison For Fraud

By

unmask

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July 29, 2020

Jonathan Nnamdi Udemadu, the former Managing Director (MD) of Achina Microfinance Bank, has been sentenced to 11 months imprisonment after being convicted for committing multiple frauds.

After being found guilty of nine-count charges of abuse of office, forgery, issuance of dud cheque, and fraudulent conversion of depositors fund to the tune of N66,633,000.00, Justice I.B. Gafai of a Federal High Court in Anambra, convicted Udemadu.

In line with Section 321(a) of the Administration of Criminal Justice, Act 2015, the presiding judge ordered the convict to refund Achina Microfinance Bank the sums of money contained in the charge.

Speaking of the incident, the Economic and Financial Crimes Commission (EFCC) said it was written a petition by the microfinance bank. The petition, according to EFCC, alleged that Udemadu during his time as Achina’s MD, granted N15 million unauthorised credit facility to Rommex Telecommunications Limited and also did the same to Noble Mike International Limited, to the tune of N3 million, as he stood as their guarantor, without collateral.

Reputational damage for Achina Microfinance Bank

It is an open secrete that fraud is a challenge that has since been plaguing the banking sector on a global scale. In recent times, fraudulent activities have been on the rise, as bank employees like Achina’s former MD, align themselves to be part of the machineries carrying out fraud at the detriment of bank customers, and sometimes the financial institution itself.

Although, Udemadu’s conviction is a victory for Achina, as it will serve as deterrent to others; when staff members of financial institutions engage in fraudulent activities or any improper business practices are revealed, it often puts the bank’s reputation at risk. As a matter of fact, in the end, this can have a negative impact on anyone who may want to do business with the company.

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COVID-19 Vaccine To Be Sold For N15,500 Per Dose

By

unmask

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July 28, 2020

COVID-19 vaccine when discovered and approved is likely to sell for $40 (N15,500) per dose. This is according to Vaccine Alliance, a global COVID-19 vaccine funding scheme.

Seth Berkley, the CEO of the GAVI Vaccine Alliance, made know that although the facility was yet to conclude on a specific target price; the facility was considering a target price of $40 per COVID-19 dose for wealthy nations.

“There was a large range of numbers, and they (the EU sources) put the highest number out. COVAX officials had given a range of different prices. And $40 was the maximum price in the range for high-income countries, rather than a set price,” Reuters quoted him as saying.

While explaining that GAVI’s COVAX, the vaccines pillar of the Access to COVID-19 Tools (ACT) Accelerator, has commenced the putting together of estimations based on known information, Berkley maintained that at the moment, the prices are yet to be concluded.

He further made known that it is presently not clear what manufacturers of potential COVID-19 vaccines will propose, but according to him, efforts made from GAVI so far, is putting forward cost estimates based on available information.

“The challenge is trying to come up with a cost. Anybody who tells you they know isn’t being honest,” Berkley added.

Know this…

Drug manufacturers like Moderna, have so far recorded positive results in their COVID-19 trials. And according to the World Health Organization (WHO), no less than 150 vaccines are at development stage across the world.

Wondering how long it will take to develop a vaccine and get it approved for COVID-19 cure? You don’t have to ponder anymore, as Wellcome Trust, a research-charity based in London recently revealed that normally, the research and discovery stage takes between two-to-five years. Corroborating this claim, the UK Charity Commission said a vaccine can take more than 10 years to fully develop.

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NIPOST: 3 Other Policies That Triggered the Fury of SME Operators

By

unmask

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July 27, 2020

Some days ago, the Nigerian Postal Service (NIPOST), became a subject of intense debate among Small and medium-sized enterprise (SME) operators, and other concerned Nigerians.

The government-owned and operated corporation, responsible for providing postal services in Nigeria, had provoked anger, after disclosing that it has increased fees for courier services companies in the country.

Below is a breakdown of the increased fees:

For companies that offer international courier services, they were expected to pay N20 million for a new license and N8 million for renewal of services annually.

While logistics firms that are operating at the national level were to pay N10 million for license and N4 million yearly, companies operating within regions were expected to pay N5 million for license and N2 million annually.

More so, companies operating within states were to procure their licenses for N2 million while renewal costs N800,000. Companies within the Municipal area are expected to pay N1 million for license and N400,000 annually.

Although, the hike in licensing fees for courier services operators has been suspended; this development has triggered protest and wild reactions from SME operators and other concerned members of the public. It is however in this light that Unmask NG presents three government policies from President Muhammadu Buhari-led administration that didn’t sit well with Nigerians.

POS stamp duty:

Recall that in May 2020, Federal Inland Revenue Service (FIRS), the agency responsible for assessing, collecting and accounting for tax and other revenues accruing to the Federal Government, in a circular, noted that Nigerians would henceforth be paying stamp duties on all forms of electronic notifications acknowledging receipts of funds. This includes SMS and messages on any electronic platform such as -emails and Whatsapp messages.

As seen in the circular, the stamp duties will be paid on POS receipts, fiscalised device receipts, and Automated Teller Machine (ATM) print-outs.

The revenue generating agency, in the circular, specifically stated that all receipts -be it printed or electronically generated, or any form of electronic acknowledgement of money transactions, would attract a stamp duty of N50.

5% VAT charge on online purchases:

As of August 2019, the FIRS directed banks to charge customers 5% Value Added Tax(VAT) for their online purchases when using their bank cards.

It is an open secrete that online purchases are increasingly gaining relevance among Nigerians.

With e-commerce platforms like –Buffbuy, Jumia and Konga, are leading the pack, Nigerians now throng on online purchases for their wants and needs. Payments for such purchases are often made using bank debit and credit cards, and according to Tunde Fowler, the former FIRS boss, would attract the 5% tax.

VAT Act:

Last year, the Nigerian Senate passed a finance bill that sought to amend seven Acts of the National Assembly, relating to taxes payable in the country.

Specifically, the bill sought to hike the VAT from 5% to 7.5%.

What you should know:

Recently, there has been some newly-introduced taxes and review of the fees of existing ones. This, Unkas NG understands, were because the incumbent government cannot sustain the country’s economy through crude oil alone.

And as a result, the Buhari government has been aggressively pushing for more revenue sources, at the detriment of SMEs.

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Transcorp Hotels’ Director Resigns Amid Company’s Full-Year Revenue Decline Scare

By

unmask

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July 24, 2020

Barely five months after being appointed, Helen Iwuchukwu has resigned as the Executive Director of Transcorp Hotels Plc.

Her resignation was on Tuesday, July 21, 2020, disclosed, but the Board of Directors of Transcorp Hotels had accepted it since Monday, July 20, 2020. Although, she will remain in her position for the next months, which is when her resignation will take effect.

“We write to formally notify the investing public and The Exchange that the Board of Directors of Transcorp Hotels Plc at its meeting on the 20th of July 2020 accepted the resignation of Mrs. Helen Iwuchukwu as an Executive Director of Transcorp Hotels Plc with effect from 20th October 2020,” a statement from the company read partly.

Unmask NG however understands that Iwuchukwu’s resignation came on the heels of the company’s disclosed probability to record a revenue decline.

Recall that two months ago when Transcorp Hotels recorded significant revenue drop due to the raging COVID-19, the company made it clear that chances are high that its full-year financial result for 2020 will be very poor.

As seen on the Nigerian Stock Exchange (NSE), Transcorp Hotel’s group revenue in 2020 Q1 dropped to N4.17 billion, as against the N4.18 billion recorded in the first quarter of 2019. Similarly, the company’s earnings declined from the N3.99 billion generated in 2019 Q1 to N3.98 billion recorded in 2020 Q1.

“Transcorp Hotel plc started the year 2020 optimistic with detailed plans and budget to surpass the N20bn revenue performance achieved in 2019. With the Global Coronavirus Pandemic, the hospitality industry has been negatively impacted.

“Nigeria has witnessed an increase in confirmed cases which led to the closure of airports and flights and an official lockdown of the FCT issued by the Federal Government to ensure the effective combat of the virus. All of these have negatively impacted the hotel and its business activities in this period.

“The Company anticipates that its future results of operations, including the results for 2020, will be materially impacted by the coronavirus outbreak. However, given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact on its results and its operations, and, if the outbreak continues on its current trajectory, such impact could grow and become material to its liquidity or financial position,” a statement from the company read.

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Tackling COVID-19: BUA’s Donation Raises More Questions Than Answers

By

unmask

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July 21, 2020

Like many other concerned individual Nigerians and corporate organisations, BUA Cement Plc, through its chairman, Abdul Samad Rabiu, has provided support in the fight against COVID-19, the infectious disease plaguing the whole world. This is not in doubt.

However, the company’s public disclosure that it has committed over N7 billion in cash, foodstuff, and medical supplies amongst other things across Nigeria to fight the pandemic raises more questions than answers, with allegations of inflated figures and over-valued contributions trailing the gesture.

According to Aliyu Idi Hong, the Director, government relations of BUA Group, and Yusuf Binji, the Managing Director of BUA Cement, the donations by the cement company were in line with its social obligations everywhere it operates within the shores of the country.

However, contrary to the cement company’s alleged COVID-19 donations, informed sources insist that the donations of BUA do not match the figures projected. Some sources who spoke on the condition of anonymity, disclosed that BUA’s Rabiu may have played up the figures to portray the company in good light to people, leveraging on the media to propagate his agenda.

It was also gathered that both the United Nations (UN) and Nigeria’s Presidential Task Force (PTF) of COVID-19 rejected BUA’s donations, due to the fact that his company’s activities do not align with the kind of values they both represent. To some, this rejection is an indictment.

“Let him (Rabiu) give a breakdown of the donations he has been claiming to have done. Everything is entirely false, nothing is real. He tried to give the PTF money, but they couldn’t accept; neither could the UN. So, if he’s man enough, let him come out to explain how his donations were disbursed and managed,” a source challenged the BUA boss.

Another source also disclosed that BUA Foundation, a Non-Governmental Organisation (NGO), under which Rabiu has allegedly been making donations to the Nigerian government, is not officially registered, and therefore not recognised as an existing organisation in the country.

“There is nothing like the BUA foundation. The NGO only operates in shadows. If not, how can ‘a self-styled’ reputable man like Rabiu not have his NGO registered?. Unless it (registration) was done yesterday, BUA Foundation does not exist in the Corporate Affairs Commission (CAC)’s official records.” the source stated.

Corroborating the disclosure, an insider, Yusuf Adamu, stated that Rabiu allegedly connived with Governor Abdullahi Ganduje of Kano State, to deceive unsuspecting members of the public with donations. “What has been done with the so-called donations?” she challenged Rabiu and Ganduje to explain.

It is well known that a company’s reputation is one of its biggest and most valuable assets. When great things are heard or said about an organisation and its good standing is reported in the media, it prompts more customer inquiries, increased profit margins, healthy and productive relationships with investors and shareholders. On the other hand, a public relations debacle can dent the reputation of any firm and destroy the reputation it has built over the years, which may be near impossible to rebuild. From all indications, BUA may fall headlong into this category if care is not taken.

Among financial circles, experts are of the opinion that the company is on the verge of facing the consequence of poor reputation for various reasons including the one mentioned above, which they said will be reflected on its balance sheet.

Higher business operating costs, poor margins, devalued stock prices, amongst other unforeseen circumstances, according to the experts, are what the company is likely to battle with, which they said will be disappointing to its shareholders and investors.

According to some media reports, BUA donated N1billion to the CACOVID basket fund put together by the organised private sector to support the federal government. It also reportedly bought 20 pickup vans and 4 Ambulances for the Kano State Government, and gave Edo State government N100 million and two Ambulances.

Analysts are wont to ask: If Rabiu donated N7 billion to support the COVID-19 fight, then where did the rest of the money go to? The calculations from the media reports do not match the figure allegedly contributed by Rabiu and his company. He or his company urgently needs give a total breakdown if he wants his claims to stand and his gesture not to be misconstrued.

There is also an allegation that BUA, through a commercial advertisement on the US Cable News Network (CNN), is the second largest producer of cement in Nigeria, after Dangote Cement and before Lafarge Nigeria in terms of volume, just to showcase its productivity. Experts in the cement industry insist that this claim is totally bogus, and have advised the CNN to do a fact-check and thorough investigation on this, since Lafarge produces more cement than BUA.

All these gestures, analysts believe, may have arisen from Rabiu’s desperation to shore up the image and reputation of his company after the rejection of his support by the UN and the Nigerian PTF; gestures calculated to buoy the company’s profile and lead to an increase in patronage of its products.

This, among other allegations leveled against him raises a cogent question on the real motive behind BUA’s over-reported donations and seemingly humane persona. He will do well to clarify his support claims and answer all the nagging questions, if he still wishes to remain relevant in the sphere of voluntary donors and philanthropists in Nigeria.

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Why the sacking of pilots

Here’s what we think….

Shoprite, not the first to leave…

The naked truth

Glaring consequences

Our message to the Nigerian government

Our backstory…

Elumelu is right….

Elumelu, a living testimony…

His retirement plans…

Below are four things that you should know about Austin Avuru:

Reputational damage for Achina Microfinance Bank

Know this…

Below is a breakdown of the increased fees:

POS stamp duty:

5% VAT charge on online purchases:

VAT Act:

What you should know:

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