Shoprite Completes Sale Of Nigerian Subsidiary - IReporteronline
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Shoprite Completes Sale Of Nigerian Subsidiary

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Shoprite Holdings has finalised plans to sell its Nigerian subsidiary, Retail Supermarkets Nigeria Limited, under which Shoprite Nigeria operates.

The winding-up of the company’s operations is happening 15-years after its entry into Nigeria.

The company had announced last year that sales wasn’t good in Nigeria coupled with the COVID-19 pandemic that shut retail market operations down, sales significantly declined.

Sales declined by 6.3 percent during the year, and in its non-South African markets, sales declined by 8.4 percent in rand terms, but contributed to 10.2 percent of Group sales. The declining sales had compelled Shoprite to make a divestment from Nigeria.

The retailer planned ending of 2020 to quit the Nigerian market, but Shoprite has changed its exit date to the fourth quarter of 2021. This was revealed in its six months ended December 2020 report.

Last year, Shoprite stated, “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.”

However, new development from the company state, “We hereby confirm that the terms of sale have been concluded and that the transaction has been lodged with the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) for approval.

“Management expects the transaction to be approved by the end of the 2021 financial year.” Shoprite said in its financial statements for six months ended December 2020.

In its 26 weeks to December 27, 2020 report, while addressing its market outside South Africa, the retailer said it is managing cost in Nigeria and it is “at the approval stage in terms of the sale of our Nigeria supermarket operation.

“From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.” Shoprite disclosed.

The company has about 25 stores which will be handled by a new owner at the end of this year. Although, the Nigerian subsidiary is struggling to keep business in order as protests continue to prevent operations from running as usual.

The Ibadan store were closed last week, while some weeks ago, the Lagos branch also recorded its own protest which is over gratuity promised to the Nigerian workforce by Shoprite, current owner of Nigerian subsidiary.

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Naira Closes Week Stronger To The Dollar

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Naira closed the week stronger to the dollar after four days of trading at the I&E window of the foreign exchange market.

Naira had opened the week weaker to the dollar after Tuesday’s trading at N410.50, but on Friday data posted on the FMDQ Security Exchange where forex is officially traded showed naira exchange at N409.00.

Friday’s exchange rate represents a 0.16 per cent appreciation from N409.65, the rate at which the naira closed on Thursday.

Similarly, forex turnover increased week on week increase from $35.55 million on Thursday last week to $55.21 million.

Although Friday turnover represents a drop by 41.07 per cent, from the $93.69 million posted on April 8th.

Market participants during Friday’s trading bid for dollar between N395.00 and N420.00.

In the unofficial market however, the naira remained unchanged against the U.S. dollar according to data posted by abokiFX.

The data posted showed that the naira closed at N485.00 at the black market on Friday, the same rate it exchanged hands since the start of the month.

At the end of Friday’s trading the difference between the unofficial market and the I&E window exchange rate stood at N76.

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Why Nigeria Can’t Stop Borrowing – CBN

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The Central Bank of Nigeria, CBN, has insisted that Nigeria can’t stop borrowing, mainly when it’s necessary.

Mr Godwin Emefiele, the CBN Governor, disclosed this in Abuja on Friday at the National Dialogue on Nigeria’s rising debt profile, titled: “The Rising Public Debt in Nigeria and the Challenges of National Development,” organised by the Action Aid Nigeria (AAN).

Emefiele, who was represented by Dr Tawose Joseph, the Assistant Director, Monetary Policy Department, CBN, said there is no crime in borrowing.

According to him, there should be monitoring and evaluation of the money borrowed and its purpose.

This is coming as AAN and stakeholders have expressed fear over unbalanced borrowings levels, rising national debt profile and increasing poverty level under President Muhammadu Buhari-led government.

He said, “Debt is part of fiscal responsibility. Debt is never a crime or a sin. The private entity also borrows to survive. What matters most is the debt’s quantum and the debt usage as well as if money is borrowed as a result of the shortage of income generation.

“When you compare the income and expenditure, and it is efficiently used, it is part of government responsibility. But where the fear is when it is above the threshold.

“CBN understands that when there is a crisis in an economy, then the burden of debt would be something. That is why the conventional and non-conventional instruments are there to ensure price stability in the economy.”

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Aisha Buhari Rakes N155m At Book Launch

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Wife of the President Mrs Aisha Muhammadu Buhari Thursday realised N155 million at the public presentation of a book titled, “Aisha Buhari: Being Different.

 

The book, written by the Senior Special Assistant to the President on Administration and Women Affairs, Office of the First Lady, Dr Hajo Sani, was launched at the State House Banquet Hall in Abuja.

 

National leader of All Progressives Congress (APC) Mr Asiwaju Bola Ahmed Tinubu bought copies of the book N20 million while Alhaji Aliko Dangote and Alhaji Abdulsamad Rabiu bought copies for N30 million and N25 million, respectively.

 

Mrs Folorunso Alakija and Chief Kessington Adebutu bought copies for N10 million each while representatives of Alhaji Muhammadu Indimi and Captain Idahosa Okunbo donated N20 million each.

Mrs Bola Shagaya and the representatives of Arthur Eze donated N10 million each.

 

The chairman Nigeria Governors Forum (NGF) Governor Kayode Fayemi of Ekiti state, and Deputy Senate President, Mr Ovie Omo-Agege pledged an undisclosed amount of money for copies of the book.

The event was jointly organised by the Office of the First Lady of Nigeria and the Women and National Development (WAND).

 

Meanwhile, Vice President Yemi Osinbajo has extolled the virtues of wife of the President, Mrs Aisha Muhammadu Buhari, saying she has redefined the role of the office of the First Lady of the country.

 

Speaking at the public presentation of the bookOsinbajo said, the First Lady has endeared herself to Nigerians by stepping outside the box of what used to be the personage and traditional roles in Nigeria’s presidential history.

He said she has also regaled Nigerians with many firsts, including keeping Nigerians updated with the activities of her office or how she feels on an issue via the social media outlets and connecting with the public in real-time.

 

“She’s, of course, the First Lady to be on Twitter, on Instagram, and other social media platforms, getting her unfiltered views across to the Nigerian people and she’s probably the first to receive, in real time, the opinions of Nigerians on her views. With her views, forthright, crisp, truthful and once in a while controversial, she has established an ongoing conversation with the Nigerian people.”

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