Index to Nigerian Newspapers

Leading consumer goods manufacturing companies have faced severe funding pressure due to rising interest rates and foreign exchange scarcity. Financial Vanguard findings show that these companies have resorted to expensive bank borrowings to sustain their businesses, increasing their exposure to banks to N1.834 trillion in the first half of 2023. The finance cost from these borrowings rose by 411.2% to N330.972 billion in H1'23, driven by the steady increases in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN). The top five borrowers are International Breweries, Unilever Nigeria, Guinness Nigeria, Nestle Nigeria, and Nigerian Breweries Nigeria. Analysts and investment experts have criticized the high cost of borrowing from banks, arguing that capital market equity remains the best financing option for manufacturers to meet operational needs. They also advised manufacturing companies to consider Commercial Papers (CPs) for short-term borrowing to reduce finance costs and avoid banks' stringent conditions.

MOFI, the special purpose investment vehicle and asset custodian agency of the Federal Government of Nigeria, plans to identify, revive, and list all moribund government assets on Nigerian stock exchanges. The plan aims to grow MOFI's Asset Under Management (AUM) to a minimum of N100 trillion over the next decade, increasing economic impact on Nigerians. MOFI is collaborating with stakeholders like the Chartered Institute of Stockbrokers, CIS, Association of Stockbroking Houses of Nigeria, ASHON, NGX, and stockbrokers to revive and list moribund government assets transparently, leading to transformation and economic value. The collaboration aims to professionalize public wealth management and create growth across industries. NGX CEO Temi Popoola commended MOFI for its role as the custodian of government investments and assets, emphasizing the partnership's potential to facilitate capital access for listed entities and contribute to Nigeria's capital market advancement.

GlaxoSmithKline Consumer GSK UK Group Plc has announced its intention to cease commercialization of prescription medicines and vaccines in Nigeria through its subsidiary, GlaxoSmithKline Consumer Nigeria PLC. The statement stated that the GSK UK Group informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization through local operating companies and transition to a third-party direct distribution model for pharmaceutical products. The Haleon Group also informed the Board of GlaxoSmithKline Consumer Nigeria Plc of its intent to terminate its distribution agreement and appoint a third-party distributor. The Board is working with professional advisors to agree on next steps and will submit a draft Scheme of Arrangement to the Securities and Exchange Commission. Shareholders are advised to seek professional advice and exercise caution when dealing in the company's shares until further announcements are made.