In the midst of a financial slowdown in the alcoholic and non-alcoholic market, Nigerian Breweries has turned to loans to keep its operations running. Nigerian Breweries’ current liabilities as of March 2023 were estimated to be N458.18 billion, which is double the company’s current assets of N186.04 billion. The brewer reported a loss of N10.71 billion in the first three months of 2023. Nigerian Breweries contacted the capital market to borrow N25 billion by issuing commercial paper in the midst of this financial burden. This would increase the company’s liabilities and weigh on Nigerian Breweries’ retained earnings. Investors should exercise caution this week as the stock market is distancing itself from the company’s stock, which has caused its share price to drop by -18%.
Herbert Wigwe, the Chief Executive Officer of Access Holdings and the Managing Director of Access Bank Group, keeps increasing his stake in the financial institution as a sign of his belief in its expansion. Last Friday, Wigwe purchased 75 million shares for N843.75 million. On April 28, the previous week, he bought 1.13 billion shares for N11.35 billion.Top executives’ purchases or sales of stock, like Wigwe’s, signal other shareholders of a publicly traded corporation to buy or sell stock. Since Access Holdings’ share has increased since Wigwe initially bought shares in late April, his engagement in the stock market may therefore encourage investors. Since April 28, the share price of Access Holdings has increased by -10.83 percent.
MTN Nigeria could be forced to pay up N1.48 billion in legal fees, including a N200 million judgment from a case involving the alleged electrocution of 12-year-old Hamsatu Abdullahi in Yobe State. Benue State Internal Revenue Services and Corporate Communications Ltd. are suing the business as well. If the corporation loses the proceedings, it will have an impact on its earnings, albeit MTN Nigeria claimed that no financial loss is anticipated as a result of these lawsuits and allegations. The firm’s share decreased by -0.47 percent in the stock market after the news of the lawsuit broke on May 2, and it ended the week on the losers’ table.