The week ahead - Bold statements
Happy New Year, and welcome back.
This week was marked by bold statements across various sectors. In Nigeria, telcos secured approval for increased tariffs, and revenue agencies claimed a greater share of their collections, and the state-owned oil firm posted higher production numbers even as it got indicted for unauthorised actions. A relaxation brand made a leap beyond its base while in one of Nigeria’s insecurity prone states, many citizens were carted away. Meanwhile, Ghana’s returning President began his new tenure with financial headaches even as an arrogant former colonial master received backlash from the rest of Africa.
Chart of the week
Nigeria's poor road infrastructure poses significant economic challenges, costing the country billions annually in lost productivity and resources. Our recent survey of 245 commercial drivers across eight major hubs highlighted widespread dissatisfaction with road conditions, citing potholes, security concerns, and extended travel times as major issues.
The survey showed that insecurity is a significant concern, with 84.6% of respondents reporting security incidents or threats along their routes. Poor road conditions also drive up vehicle maintenance costs, with nearly half of respondents reporting increased expenses. Addressing these infrastructure deficits is crucial to reducing delays, lowering operational costs, and stabilising transport pricing, ultimately fostering economic growth and improving driver and passenger satisfaction.
SBM in the media
On the heels of the kidnap incident in Zamfara, the UK’s Channel 4 cited our reporting as they embedded Jamal Osman with Nigerian troops to observe the hunt for bandits.
Insecurity was also the topic of our discussion a few days earlier as our founder joined a panel on Channels TV to assess the future of Nigeria’s security architecture.
Finally, as 2024 came to an end, Bloomberg cited SBM’s Jollof Index and spoke with our head of operations in a report on rising food prices in Nigeria.
What we watched this week
Nigerian telecommunications companies, including MTN and Airtel, have proposed a 100% tariff increase to the Nigerian Communications Commission to address rising operational costs, including inflation and increased service delivery expenses.
Nigeria's key revenue collection agencies spent $559 million on operational costs between January and November 2024, accounting for 2.51% of the total revenue collected.
The NNPC has been indicted for unauthorised deductions of $50 million from federation revenue for refinery rehabilitation, according to the 2021 Auditor-General's report.
Landmark Africa is relocating its Nigerian headquarters and expanding operations after the demolition of its Landmark Beach Resort in Lagos resulted in an estimated $80 million loss.
Gunmen have killed a local leader and two others in Katsina, while also abducting his family members, amidst a wave of violence that included a separate attack in Zamfara where at least 46 people were kidnapped.
Ghana's new president returns after a hiatus to a financial crisis.
Finally, French President Emmanuel Macron has sparked outrage by criticising African leaders in the Sahel region for being ungrateful towards France's military efforts, amid growing tensions and accusations of neocolonialism.