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Hello <<First Name>>,

It's another Saturday and the weather is mostly cold, dusty and dry in Nigeria. It's not the ideal weather for moving around 😪

Here's a shower thought you can relate with, “The farther away you can wave hi to someone, the closer you are as friends.” 


One more thing: We love that you’re here again, please help share this newsletter with friends and frenemies.

Now, The Stories for the Week.


What’s the last movie you saw at the Cinema?


Nigerians seem to be gradually building a cinema culture but it hasn’t clicked yet.

Nigerians spent approximately N3.73 billion on movies at the cinemas across the country in 2019 but local movies are still struggling to fit in properly.

How local movies are thriving: Although audience movie interests are still mostly geared towards foreign movie releases, a report by the Cinema Exhibitors Association of Nigeria (CLEAN), suggests that Nigerian movies filled up only five down spots out of 20 top movies that produced the highest revenue in the country, meanwhile 15 of them are foreign movies, hence we need more local consumers.


*All figures stated in Naira 

Ouch! This means that Nollywood is still lagging behind, losing revenue to foreign movies in the Nigerian market. They are pretty much losing in their own market. 

How this affects the local market: Nigerians are still a little skeptical to see local movies at the cinemas but the industry--for what it is worth--is graduating from the era of piracy to cinema experience, which is good. However, it is more important for cinema culture to improve so Nollywood producers can have a strong basis to show investors,  in order to meet up with their foreign counterparts in the future. 

Zoom out: Most Nigerians only see local movies with their favourite actors are starring in it. In order to increase the demand and consumption of Nigerian movie, more investment would need to be made in the improvement of storylines, picture qualities and general local production processes. 

What was the last (Nigerian) movie you saw at the Cinema?


Banking Industry moves

GTBank, Nigeria’s largest bank by market capitalization reduced its interest rate for its ‘quick credit’ facility from 1.75% to 1.33% per month.

Two reasons why

LDR: The chief regulatory bank in Nigeria, CBN(Central Bank of Nigeria)  has increased the minimum Loan to Deposit Ratio from 60% to 65%. The LDR ratio is the total amount a bank has issued as loans from consumer deposits. Any bank that failed to comply will be forced to keep more cash with the CBN and earn no interest on them. Bank can comply with this by either rejecting deposits or lending more.

Competition:  To beat out competition by dropping rates to a level where microfinance and FinTechs will struggle to compete.


The impact

Traditional banks typically target high-quality borrowers with proper credit ratings, so it would be interesting to see how this turns out. While this rate is lower than what most fintechs currently offer, banks have a limited reach, fintech can explore this opportunity by offering underbanked individual and more importantly, SMEs which could stimulate economic growth in the developing country.  Fintechs also offer a strategic advantage of inconvenience.  

This reminds us of a famous quote by Bill Gates,  “Banking is necessary but banks are not” 


A story of a Shady Fintech

OPay, a mobile application owned by Chinese backed consumer company, Opera has removed its loan feature after facing heavy scrutinization. Opay has digital solutions in transportation, food delivery and lending. Its major loan feature operating in Nigeria, Okash, faced heavy backlash to an inaccurate description of its loan services. It claimed to offer loans between ₦2,500 to ₦60,000 with a loan term of 91 to 356 days and a maximum interest rate of 24% but in reality, users typically have 7 to 15 days to repay a loan with interests reaching 365% in most cases. This kind of practice is known to be targeted at the country’s desperate population and by our standards, it’s just despicable.


Acquisitions: In other related news, Access Bank PLC - Nigeria’s largest bank by customer base,  has acquired Transnational Bank PLC. This action is in line with its ambition of expanding its footprint across the continent as it also acquired Diamond Bank last year.


What happened in Davos 2020


This week, the 50th Annual Meeting of the World Economic Forum(WEF) happened  in Davos, Switzerland as usual. Business leaders, governments and the civil society gathered to discuss the most pressing global issues with a view to improving the state of the world.


In Attendance: 2,782 representatives (24% were women) from 117 countries and 121 nationalities. 

Major issues: Sustainability & Climate change

Unlike in 2019 where gender equality and diversity emerged as key themes, in 2020 climate change, renewables and sustainability were a large part of the conversation, along with geopolitics.


Reports Released: 

Time to Care report: Oxfam’s report suggests the world’s richest 2,153 people controlled more money than the poorest 4.6 billion combined in 2019.

Global Risks Report 2020: The 15th edition of the World Economic Forum’s Global Risks Report lists the top global risks and describes the major environmental, ocean and climate risks that pose a threat to the economy. 

Why it matters

The WEF has been called a "talking shop" incapable of delivering meaningful change or an exclusive gathering of global elites by critics. While the critics have a case because it appears nothing significant immediately comes out of this event.

The WEF is built on the idea that the world needs better cooperation between the private and public sectors to best tackle global challenges. The WEF’s mission is based on the simple belief that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change. 

If it appears progress isn’t happening, remember, you can lead a horse to water, but you can't make it drink.


China in 2019 and what to expect in 2020: The Year of Rat


Today marks the beginning of China’s lunar year, this year is according to Chinese zodiac sign is the year of the Rat. Though people consider the rat not adorable, In this case, it associated with characteristics of an animal with spirit, wit, alertness, delicacy, flexibility and vitality. We were gonna say think of Jerry in Tom and Jerry but Jerry is a mouse.


2019 in a nutshell: China’s economy grew 6.1% overall in 2019: its weakest year since 1990 --  The Trade war with the US being a major contributory factor. The urban unemployment rate stood at 3.62 per cent at the end of 2019, well below the government’s annual ceiling of 4.5 per cent. Although China is still the world’s fastest-growing economy, it appears they’d need some turbo boost to keep up the fast pace.


Moving on to 2020

China’s 2020 started on a bright note, China’s central bank trimmed the amount of cash that lenders must hold in reserve and hinted at reducing the borrowing costs for companies. This move would release about 800 billion yuan ($115 billion) of liquidity into China’s financial system

Also, China and the US reached a temporary agreement to end the year-long trade war.



A pneumonia-like virus broke out a few weeks ago originating in Wuhan, China. It has killed 25 people, spreading to other countries. It was also found in the US, Japan, South Korea, and Thailand. Singapore and Vietnam and infected more than 800. While it has caused panic because it’s a reminder of SARS, a similar disease that originated in China in 2002 and killed more than 800 people worldwide. 

Experts from the World Health Organization say it’s too early to declare the outbreak an international health emergency. And China says it's allocating $144 million to fight the deadly outbreak. It's also quarantined the entire city of Wuhan – 11 million people.


Why it matters

Last year, China faced a Pork Crisis, this year it’s a coronavirus. The outbreak has dampened growth prospects for the world’s second-largest economy during what is normally a busy spending season. Also, Wuhan is an industrial and manufacturing hub that embodies China’s rise as a global economic power. 

The year of the Rat is just starting so there’s still a lot to be hopeful for.

Worth Reading 📚


Quote 💭

Always be a little kinder than necessary.


– James M. Barrie (a Scottish novelist and playwright)

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Written by Daniel Adeyemi, Damilola Amusan and Bright Azuh.


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