Author: The Nation

The Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Ebenezer Onyeagwu, has emerged the ‘Best Banking CEO of the Year in Africa’ in the International Banker 2023 Banking Awards.

He was honoured alongside other individuals and banks from the Middle East and Africa. The award was published in the Spring 2023 Issue of the International Banker Magazine.

The 2023 Banking Awards focused on various criteria, including the provision of much-needed capital for economic growth, cutting-edge innovation to enhance security and efficiency, and intelligent investing to maximise profits and shareholder value.

Expressing gratitude for the recognition, Onyeagwu commended the Publishers of the International Banker for considering him a fitting recipient of the ‘Best Banking CEO of the Year in Africa’ award. He stated, “This award reflects the bank’s position as a leading financial institution in Nigeria and the African continent. It also attests to our commitment to principles of sustainability and high ethical standards, which have become integral to our overall strategy as an institution”.

He dedicated the award to the Founder and Chairman, Jim Ovia, for his guidance and mentorship; the bank’s management team and staff, for being the shoulder upon which his achievements and success as CEO rests; and the bank’s customers for making Zenith Bank their bank of choice.

Onyeagwu’s outstanding career has led to him receiving multiple awards, including Bank CEO of the Year (2019) by Champion Newspaper, Bank CEO of the Year (2020, 2021 & 2022) by BusinessDay Newspaper, CEO of the Year (2020 and 2021) – SERAS Awards, and CEO of the Year (2022) – Leadership Newspaper.

As Group Managing Director/CEO, Onyeagwu has led Zenith Bank to achieve tremendous feats and milestones in financial performance (including 47 per cent growth in the bank’s market capitalisation in four years), financial inclusion, corporate governance and sustainability.

These efforts have culminated in several local and international awards and recognitions including being recognised as Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards.

Read Also: Zenith Bank is ‘Africa’s best in corporate governance’

The bank also emerged the Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; ‘Best in Corporate Governance’ Financial Services’ Africa, for four consecutive years from 2020 to 2023, by the Ethical Boardroom; and the Most Responsible Organisation in Africa 2021 by SERAS Awards.

On March 25, 2023, he was conferred with a Doctorate Degree in Business Administration by the University of Nigeria, Nsukka, Nigeria’s first indigenous University, in recognition of his immense achievements as Group Managing Director/CEO of Zenith Bank as well as his contributions to the growth of the financial services sector in Nigeria and across the African continent. The award was given during the 50th convocation ceremony of the University.

Published by Finance Publishing Limited, the International Banker is a leading global source of authoritative analysis and opinion on banking, finance and world affairs. Its influence, integrity, accuracy and objective opinion have earned it global recognition.

The International Banker Awards strive to recognise the most worthy financial institutions around the world – those not just doing their jobs well but exceptionally well – those operating at the industry’s cutting edge and setting new performance levels to which others will aspire.

The Financial Market Dealers Association of Nigeria (FMDA) has said the limited opportunity available for banks and other financial institutions to raise capital at International capital market remains a big challenge for the industry.

Speaking during the FMDA’s 30th Annual General Meeting/Swearing-in of the new Governing Council members in Lagos,  FMDA’s immediate past president, Bayo Adeyemo, said the global economic environment remains challenging with the Russia-Ukraine war impacting businesses at home.

He said the development has limited the opportunity for companies to raise capital at the international capital market.

Adeyemo said the FMDA’s 10-year strategy document on operations of the group would be implemented by successive presidents to take the group to its desired heights.

He said FMDA would continue to partner the Chartered Institute of Bankers of Nigeria (CIBN) for  the training of its members.

Adeyemo said the challenges facing the operating environment must be tackled, including the need for members to shun unethical practices that would attract wrath of regulators.

The new FMDA President, Nadia Zakari, sought the support and contribution of every member to the realisation of the goals and vision of the association.

She said: “I encourage everyone to continue to contribute to their quota for the association to continue to thrive”.

FMDA Acting Executive Secretary, Mrs. Mary Gbegbaje, said the association would continue to support young bankers. She advised the young bankers to always provide information on training that would benefit them in their works.

The new council members are  Zakari, who is  also the Chairperson Foreign Exchange Workgroup and Rand Merchant Bank Treasurer; Ada Nnaemeka, Vice President and Chairperson, Swaps and Derivatives Workgroup and Treasurer, Keystone Bank; Adetokunbo Uko, Council Member and Chairperson, Bonds Workgroup and Treasurer at Ecobank Nigeria and Ramat Babah, Council Member and Chairperson, Money market Workgroup and Treasurer, FBNQuest Merchant Bank and Emmanuel Afamefuna, Council member and Chairman, Treasury Support Workgroup and Head, Treasury Operations, Fidelity Bank.

The FMDA is an association of licensed Deposit Money  Banks (DMBs) in the financial market, emphasising on regulatory policy engagement/advocacy and professional ethics in the financial markets.

Unifying exchange rate is a difficult task that must be done and will require a lot of courage to achieve, the Managing Director/CEO, Parthian Partners Limited, Oluseye Olusoga, has said.

In a report released at the weekend, he said an attempt to unify the exchange rates in Nigeria would imply some level of official devaluation; however, it would also bring additional benefits. Once the rates are converged, there would be better free flow of money and reduced arbitrage concerns, he added.

“But, accomplishing this task is challenging due to the rising cost of living and the need for people to adjust to the new situation. Nonetheless, I believe it is necessary for Nigeria to reach its full potential. Rather than a gradual approach, the process should be market driven.

“To achieve this, Nigeria should increase its daily oil production for exports and diversify into sectors such as mining to generate foreign exchange. The Central Bank can act as a regular market participant, trading excess dollar supply to meet demand. The laws of supply and demand would help stabilise the market,” he said.

Continuing,  Olusoga said as the former president of the World Bank Group once said, a slow unification often results in no unification due to pushback and vested interests.

“Therefore, the unification process should be swift rather than gradual. Although it may be painful, the impact might not be as severe as anticipated. For example, if the country were to announce a free-float exchange rate of N780 or N760 per dollar, the rate would quickly drop to around N700 because people would stop hoarding.”

“The limited number of people, who have access to dollars at the current rate is worth considering. Furthermore, when prices are accurately determined, the law of supply and demand can help stabilise the market.This would allow us to shift our focus towards real production and functioning markets, presenting opportunities for everyone,” he said.

He said the progress had been made since the allocation to Bureau de Change operators in July 2021. However, it is crucial to address the rumours and allow for open discussions.

Read Also: NAHCO: Unified exchange rate should apply in aviation sector

“As people start to witness positive changes in the market such as the appreciation of the Naira when oil prices drop, they will gain confidence in the functioning of the market. Imposing restrictions or defending the currency through measures like tightening the number of items or maintaining subsidies hampers market efficiency and fair distribution of resources.

“Subsidies primarily benefit the wealthy rather than the average person. By eliminating subsidies, individuals can make wiser decisions and optimise their resources, leading to better outcomes. For instance, families with multiple cars for routine tasks within a small radius could consolidate their transportation to reduce traffic and expenses,” he added.

Unity Bank Plc grew its top-line by 13.1 per cent to N57 billion in 2022 as the retail bank pushed for greater market share.

Key extracts of the audited report and accounts of Unity Bank for the year ended December 31, 2022 released at the Nigerian Exchange (NGX) showed that gross earnings rose from N50.2 billion in 2021 to N57 billion in 2022. Total comprehensive income rose by 262.1 per cent to N1.2 billion from N744 million in the corresponding period of 2021. The bank grew profit before tax by N1.1 billion while profit after tax stood at N941.4 million. 

With the loan book sustaining an expansion by 7.5 per cent to N289.4 billion from N269.3 billion, interest and similar income rose by 7.5 per cent to N48.9 billion in 2022 compared with N43.2 billion in 2021. 

The balance sheet, however, showed that deposits from customers saw marginal growth, increasing by 1.6 per cent to N327.4 billion from N322.2 billion.

The interim report for the first quarter 2023 also showed a stable growth outlook for the bank with 21 per cent growth in profit after tax to N1.04 billion in first quarter 2023 as against N869.2 million in the corresponding period of 2022. Gross earnings rose by 17 per cent to N15.9 billion  in first quarter 2023 compared with N13.6 billion in the corresponding period of 2022.

Managing Director, Unity Bank Plc, Mrs. Tomi Somefun said the bank’s focus on building back momentum continues to reflect in the key performance indicators despite economic headwinds and volatilities that characterized the operating environment in the 2022 financial year.

Read Also: Unity Bank posts N2.2b profit in Q3

“There are highs and lows as we look at the gross earnings, with 13.7 per cent growth, increase in liquid assets by 7.5 per cent and deposits recording moderate growth of 1.6 per cent, while maintaining steady growth in profitability.

“Overall, the financial statement thus threw up both strong and less optimal points which inform the outlook for our business,” Somefun said.

She reassured that the bank would remain focused on its strategic choices and key growth drivers to push all the indices and elevate growth to double-digit territory.

According to her, the performance posted for first quarter 2023 was a strong reinforcement of adequate measures being adopted and a testament of the bank’s resolve to sustain and equally improve upon the fundamental initiatives adopted to strengthen growth throughout the course of the financial year.

“Since late 2022, the bank has begun significant investment in technology and innovation in line with its strategic pursuits to win in the retail space with our focus on digital and lifestyle banking, dynamic product development, and accelerated onboarding.

“As part of our transformation journey, we will double down on these investments in the coming months in order to achieve our aspirations of significantly reducing customer pain points and simplifying customer experience; increasing the rate of customer acquisition; expanding the frontiers of partnerships; and ultimately developing new and sustainable income lines for the bank,” Somefun said.

According to her, the bank will further give attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and brand visibility as it expands the range of products and services to meet the evolving needs of its esteemed customers.

Edo State Government has launched a N6 billion bond to raise medium-term debt capital, as sub-national governments appear to increasingly favour domestic debt capital for financing of infrastructural projects.

Issuance documents obtained at the weekend indicated that the state government, through its issuance agents, has opened a book-building for the N6 billion bond, targeting high networth individual and institutional investors.

The net proceeds from the bond issuance will be used to finance infrastructure projects across the state, according to regulatory filings by the government.

The identified projects to be funded include infrastructural developments across the transportation and services sectors. The debt capital will also address some portion of the state’s budget deficit for 2023 and support key infrastructural investments.

The new bond is being offered under a N25 billion bond issuance progrmme. Edo State had successfully raise N15.3 billion in Series 1 capital raise under the new programme. The state had in December 2020 raised N24.5 billion under a previous N25 billion debt issuance programme.

Edo State, through the book building method, is offering a seven-year bond with a pricing target 18.15 per cent. Book building method allows investors, especially high networth (HNI) and institutional investors to submit preliminary orders with indicative coupon based on the range. The issuer and its professional parties will then determine the closing coupon based on the order book.

Issuing documents obtained at the weekend indicated that the N6 billion Series 2 Fixed Rate Bond is being offered under River Jamieson SPV Limited, a special purpose vehicle set up by Edo State government.

According to the offer document, the bond is sponsored by the Edo State Government and guaranteed by an Irrevocable Standing Payment Order (ISPO) of monthly deduction from the state’s FAAC allocation issued by the Federal Ministry of Finance under the authorisation of the Executive Council and its Edo State House of Assembly.

Application list for the offer is scheduled to close on Friday, June 9, this year. Minimum subscription to the issue is N10 million and, thereafter, in multiples of N1 million.

Coupon will be paid at fixed rate twice a year while the principal repayment will by way of amortisation after a 12-month moratorium. The bond will be listed for secondary trading on the FMDQ Private Markets Platform, after completion of the issuance process.

According to the offer documents, Edo State has been assigned subnational ratings of Bbb- by Agusto & Co and BBB by Global Credit Rating (GCR). The N6 billion bond is, however, rated A by Agusto & Co and GCR.

Underlining the reasons for the capital raising, Edo State Government stated that it was committed to targeting critical sectors of the economy to solve social problems and increasing internally generated revenue (IGR), thus unlocking sustainable socio-economic development.

The state noted that its focus on strengthening its public institutions, facilitate private sector investments, improve infrastructure, and enable public education reform has positively impacted on IGR with a cumulative average growth rate of 10 per cent between 2015 and 2021.

The Edo State bond issuance followed last month’s N100 billion bond issuance by the Lagos State Government (LASG), in the first tranche of the state’s N1 trillion long-term infrastructural financing plan. The Lagos State bond recorded oversubscription of 10 percentage points. 

LASG also followed the N100 billion conventional bond issuance with the launch of Nigeria’s second subnational bond. The Lagos State Government (LASG)’s Series II N20 billion Forward-Ijarah Sukuk Issuance recorded subscription of N23 billion, 115 per cent subscription.

The LASG Sukuk, the second by a registered Nigerian sub-national, also attracted diverse investors to the ongoing infrastructure development in Lagos State. It was issued under LASG’s N1 Trillion Debt and Hybrid Instruments Issuance (DAHI) Programme.

The Nigerian Exchange Group (NGX Group) has expressed optimism that President Bola Tinubu’s policy direction will lead to increased inflow of foreign investments into the country.

The NGX said the new administration’s readiness to remove fuel subsidy, unify exchange rates and ensure that investors and foreign businesses repatriate their hard earned dividends and profits would lead to more investment flows into the economy.

Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Mr. Oscar Onyema said there was bound to be more investment flows in Nigeria, describing Tinubu’s inaugural speech as remarkable.

Onyema said this during the 7th edition of the International Court of Arbitration (ICC) Africa Conference on International Arbitration in Lagos.

Foreign transactions on the NGX have decreased by 38.5 per cent from N616 billion in 2007 to N379 billion in 2022 owing to the foreign  exchange (forex) constraints.

Foreign transactions accounted for about 16 per cent of the total transactions in the first four months of 2023 with total foreign transactions of  N62.18 billion during the period.

According to him, the initial comments by the president were the right noise for money as money goes to the least resistant places where it can get the best risk adjustment returns and without unnecessary hassles because there is competition across the globe.

“On what we have seen in the last eight years, there has been an outflow of foreign portfolio investments predominantly and so more than half of our markets outside of America, but with these policy changes, you can begin to understand why we are very optimistic that these flows will come back and with it, attract additional flows,” Onyema said.

About the promising signs of growth across Nigeria and Africa, he pointed out that the growing population of young entrepreneurs who are driving their business consistently, increased traction in the Fast Moving Consumer Goods (FMCG) industry and Nigeria being one of the largest producers of oil.

“These signs point to where we have strength, this is where we have competitive advantage in Africa and this is where we can start the journey to get more value added output,” Onyema said.

Chief Executive Officer, Nigerian  Exchange (NGX), Mr. Temi Popoola said he was confident the new administration would address forex constraints.

Popoola spoke during the closing gong ceremony to commemorate the centenary anniversary of the International Court of Arbitration (ICC) at the NGX in Lagos.

Welcoming the ICC delegation to the exchange, Popoola, who was represented by the Divisional Head, Capital Markets, NGX, Jude Chiemeka, stated that the exchange was pleased with the growing number of domestic and foreign investors on its platform.

He noted that the NGX trades between $250 million and $300 million a day and added that this has declined due to forex constraints.

“We are hopeful and we are beginning to see that the new administration wants to tackle forex constraints. At the NGX, we will continue to appreciate our partners. We are truly delighted to welcome the ICC to the exchange and at NGX, we will continue to build on partnerships just to ensure that companies will be able to come and raise capital,” Popoola said.

Secretary-General, ICC, John Denton, noted that the ICC with 400 million members in 170 countries, play a critical role in ensuring appropriate advocacy with the government and global business community on effective means of enabling the private sector, provide training and capacity building to link Nigerian businesses unto the extraordinary global platform of the national chamber of commerce.

Denton said one of the key aims of the ICC is to enable global trade while expressing excitement that the market sustained a bullish tilt in three consecutive trading sessions.

According to him, this bodes well especially for investors’ confidence under the new administration and is critical to keeping the market competitive and transparent.

Commending the NGX for its giant strides in innovation and technology, Denton said this aligns with the ICC objectives, which is a critical part of its role in developing the private sector and enabling the private sector to operate effectively.

“We are looking at 30-40 sovereign states with serious debt and liquidity issues and yet on a global basis, that is dismissed as something to be worried about and not something to be acted on.

“What that means is that the advanced economies are not prepared to work harder on the debt forgiveness issue, resolution issue because if these countries fall over, it will be terrible. We think this is fundamentally wrong and that is what we are working on. Working with a group like the NGX who understand what is required to keep the markets moving will be very helpful too,” Denton said.

Read Also: Only 0.3% of Nigerian funds in capital market, NGX laments

For the sixth consecutive year, Dangote Group has been adjudged as the most admired African brand among top 100 brands in the continent.

Dangote emerged as the most admired African when respondents were prompted to recall an African brand. MTN came in the second position and while Digital Satellite Television (DSTV) came third, both of South-Africa origin.

Dangote was also adjudged as the number one African pride brand followed by the Ethiopian Airline and MTN respectively.

In a newly introduced category, the Dangote brand came second in sustainability, by brands doing good for the people, society and the environment.

These were announced in Johannesburg, South-Africa on the occasion of the Africa Day marking the 13th Annual Brand Africa 100: Africa’s Best Brands 2023 rankings of the Top 100 most admired brands in Africa based on a survey and rankings conducted by Geopoll, Kantar and Brand Leadership, across 32 African countries that account for more than 85 per cent of the continent’s Gross Domestic Products (GDP) and population.

Brand Africa in its statement announcing the ranking disclosed that in a new category of brands that are doing good for people, society and the environment, inspired by business shifting from profit to purpose, MTN and Dangote as African brands came first and second respectively while Unicef emerged as the number one NGO and Coca Cola emerged as the number one non-African brand.

Bernard Okasi, the Director of Research, GeoPoll, which has been the lead data collection partner since 2015 while speaking on the outcome of the survey explained  “With an ever increasing number of countries, greater sample size, and the growth of mobile across the continent, more than ever, using mobile continues to prove to be an effective tool to reach and access respondents across the continent”.

The Chief Growth Officer Africa Middle East for Kantar, Karin Du Chenne,  who has been the insight lead for Brand Africa since inception in 2010 says, “despite the increased countries and sample sizes which have invariably grown the volumes of brands analysed, the survey continues to yield a very consistent picture of the leading brands in the continent, albeit not yet to Africa’s advantage.”

He added that as a non-profit initiative and to ensure the objectivity and independence of the rankings, the Brand Africa 100 | Africa’s Best Brands research to determine the most admired top-of-mind brands in Africa are not funded by any brand.

Group Chief, Branding and Communication, Dangote Industries Limited, Anthony Chiejina said the awards were well deserved because “the Dangote brand generates strong nationalistic impressions and powerful feelings across the Continent in terms of industrialization, self-sufficiency, prosperity, power and production.”

He stated that this was further strengthened with the recent commissioning of 650,000 bpd  Dangote Petroleum Refinery & Petrochemical complex which is a huge industrial complex or frigate. “The brand portends the inevitability of Nigerian global ascendancy and a gateway to regional and continental development”, he added.

Read Also: Dangote becomes most admired Africa brand for 6th time

The National Bureau of Statistics (NBS) at the weekend said food prices were still on the rise as at April, this year.

This was contained in its document entitled: “Selected Food Prices Watch (April 2023),” which The Nation obtained in Abuja.

The document stated that selected Food Price Watch for the month under review shows that the average price of 1kg of Beef boneless stood at N2,495.69 in April 2023.

The document noted that it indicates a 23.13 per cent rise in price, from N2,026.85 recorded in April last year and a 0.65 per cent rise in price on a month-on-month basis from N2,479.61 in March 2023.

NBS said the average price of 1kg of Tomato increased by 13.73 per cent on a year-on-year basis from N426.54 in April 2022 to N485.10 in April 2023.

The document explained that on  a month-on-month basis, the average price of this item increased by 3.97 per cent in April 2023.

It added that  the  average price of 1kg of Beans brown (sold loose) rose by 16.03 per cent from N530.62 in April, last year to N615.67 in April 2023.

Monthly, it increased by 3.13 per cent from N596.96 in March, this year.

Read Also: Kerosene price rises by 96.76% in 12 months, says NBS

Lagos State Government has  warned farmers against the use of urea fertiliser because of its attendant  increase in acidity level in the soil, a situation which threatens agricultural production.

Head, Crops Department, Lagos State Agricultural Development Authority (LSADA), Dr Toyin Bukola Sadiku,  gave the warning to farmers during a livelihood support programme to promote soil PH level maintenance.

Soil acidity is one property associated with decline in  fertility and low productivity.

She said the research conducted by various groups  across the state has showed high levels  presence of soil acidity  leading to poor fertility.

According to her, increased use of urea fertiliser would aid  high soil acidity.

She warned farmers not to use urea fertiliser to grow the distributed hybrid maize,adding that there were NPK fertiliser that would support the species to yield up  to six tonnes per hectare.

The State Coordinator, Federal Ministry of Agriculture and Rural Development, Mrs Akeredolu Olayinka, said the  programme  was one of the initiatives of the Federal Government to strengthen food productivity.

Read Also: Nigeria to become Africa’s fertilizer powerhouse soon, says Buhari

She said the government underscored the importance of building a strong and sustainable agricultural industry, adding that the distribution of input to maize farmers would help  them  do profitable business.

According to analysts, one major reason maize productivity in sub-Saharan Africa is very low is poor soil health. Soil acidity is often mentioned because of its impact on crop yields.

One important cause of soil acidity is the use of acid-forming inorganic fertiliser.