Private investors are expected to raise $250 million to begin a new national carrier, Aviation Minister, Hadi Sirika has said.

In a document detailing the status of Aviation Road Map, made available to reporters, the minister said the project development phase has been completed with the development of the Outline Business Case (OBC) and subsequent issuance compliance certificate by the Infrastructure Concession Regulatory Commission (ICRC).

“The next step which will involve the commencement of the procurement phase is placement of Request for Qualification (RFQ) in local and international media. $250 million approximately is to be raised to start up the airline by private investors,” he said.

‘The establishment of a national carrier will enable Nigeria to gain optimal benefits from Bilateral Air Services Agreements, take full advantage if the Single African Air Transport Market (SAATM), introduce competition, leading to competitive fares and better services as well generate employment.

“The National carrier project will be private sector driven with the government not holding more than five per cent shares. The private sector consortium may comprise reputable international airlines such as Qantas, Leasing companies, Aircraft manufacturers, Original Equipment Manufacturers (OEMs) financial and institutional investors.

“The government is providing the required support by enabling an environment in terms of sustainable policies, allocation of BASA routes, provision of financial guarantees and ensuring fiscal incentives to sustain the success of the airline,” he said.

As for the establishment of Maintenance, Repair and Overhaul (MRO) Centre, Sirika explained in the document that the Ministry is at advanced stage in the procurement phase, adding that ‘a preferred partner has been selected, the next step I commencement and negotiation with the preferred partner and finalisation of Full Business Scale (FBS).

“The proposed independent MRO facility in Nigeria will serve the maintenance demands of airlines in West and Central Africa and also provide maintenance for national carrier and African leasing companies. The MRO will be structured as a Build Operate and Transfer (BOT) model with the government acting as both the grantor of the concession and facilitator of the project, while the private partner consortium will be responsible for designing, building, financing, operating and maintaining the proposed facility for an agreed concession period.

“The consortium is expected to comprise an Independent MRO company, real estate development company, construction company, financial and institutional investor. The proposed facility will have the capacity to serve both narrow- and wide-bodied aircraft maintenance requirements and will be located in Abuja, Nigeria”.

By Daniel Essiet

About N940 million has been disbursed to individuals and businesses in Lagos under the MSME Recovery Fund.

The Fund was set up to support businesses in Lagos State whose properties and assets were vandalised during the #ENDSARS protests that rocked the nation last October.

Making this known in Lagos yesterday, the Commissioner for Wealth Creation and Employment, Mrs Yetunde Arobieke said the owners were supported with grants ranging from N50,000 to N5 million to rebuild their businesses.

She said the total number of beneficiaries were 1,835.

In the process, she added that 10,005 direct jobs and 40,029 indirect jobs were saved.

Also, the commissioner said the Lagos State Employment Trust Fund supported over 14,646 small businesses and created more than 123,720 jobs.

Under the Fund’s loan programme, the Commissioner said businesses were given financial assistance valued N250,000, N500,000 andN5 million respectively.

So far, she announced that the Fund has created  51,142 new payers.

The Commissioner reiterated that the government is determined to accelerate the founding of startups and small businesses in a bid to boost the state’s growth potential, by providing incentives in industrial hubs.

The House of Representatives has expressed worry that Nigeria loses $70 million yearly to Chinese and other European trawlers due to illegal fishing in the nation’s waters as observed by the Nigerian Navy in 2017.

As a result, the House urged the Federal Ministry of Agriculture and Natural Resources, the Nigerian Navy and the Nigerian Maritime Administration and Safety Agency (NIMASA) to put measures in place to curb illegal fishing.

The House was concerned that illegal and unregulated fishing undermines the economy, poses a security threat to the nation’s territorial waters, degrades the coastal communities and renders artisan fishermen redundant.

It also urged the Federal Government to review its licensing policy that tends to favour foreign trawlers at the expense of their local counterparts and encourage indigenous investments into this agricultural sector.

It further urged the Federal Government to prevail on the Gulf of Guinea Commission to urgently introduce a legally binding framework to check excessive fishing or overfishing in the region.

The Committee on Agricultural Production and Services was mandated to investigate the matter and report back within three weeks for further legislative action.

These resolutions followed a motion on the Need to Curb Fishing by Foreign Vessels on Nigeria’s Territorial Waters by Hon. Patrick Ifon on Wednesday.

The House said Nigeria is a nation with a large coastal area rich in marine species, yet over half of the fish it consumes are imported from China and the Netherlands.

It said it was aware that Nigeria is the fourth largest importer of fish in the world with about two million metric tons per annum for an estimated population of over 200 million people.

The House worried that despite Nigeria’s non-fishing agreement and arrangements with distant nations such as China and the European Union, illegal fishing on Nigeria’s waters persists due to bilateral agreements with the nearby country of Sao Tome and Principe.

It was concerned by the Overseas Development Institute’s Report of 2018 that illegal fishing boats from China, Netherlands and Spain operating in the Country’s territorial waters commonly transfer catches from their trawlers into container and cargo vessels on the high seas, thereby flouting quota regulations.

It was also concerned that the Gulf of Guinea Commission, which was established in 2001, to check issues bordering on fisheries beyond 20 nautical miles of each member nation is yet to come up with a legally binding framework to tackle illegal fishing activities.

By Nduka Chiejina (Assistant Editor), Abuja

The Federal Government is set to recover taxes from Ministries, Departments, Agencies (MDAs),  companies and corporations.

A statement from the Federal Inland Revenue Service (FIRS) signed by Abdullahi Ismaila Ahmad, Director, Communications and Liaison Department, said the decision to recover unremitted taxes from public and private entities mandated to collect and remit taxes was taken following increasing cases of illegal withholding of taxes.

Ahmad, said the FIRS has served a notice to companies, corporations, MDAs and other agents of collection that it “plans to recover taxes due from the defaulters’ asset in the custody of any person, including but not limited to sums standing to its credit with a financial institution in Nigeria”.

“All companies, corporate entities and other agents of collection stated are “required to pay all outstanding tax liabilities to the FIRS within 30 days from the date of publication of the notice,” FIRS stated.

The FIRS had previously issued a similar notice to MDAs demanding payment of outstanding tax liabilities to the Service within 60 days.

“MDAs, companies, corporations and other collecting agents that fail to comply with the directive now stands the risk of having all outstanding taxes deducted directly from their bank accounts or statutory allocations, or have their other assets seized by the FIRS and turned over to the Government of the Federation in lieu of the withheld taxes,” FIRS stated.

According to the FIRS, this move is in line with the Section 31 of the FIRS (Establishment) Act, 2007 (as amended).

The FIRS further stated that it “shall, without further notice, apply the provisions of Section 31 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) to recover taxes due from the defaulters’ asset in the custody of any person (including but not limited to sums standing to its credit with a financial institution in Nigeria).”

The Service added it will “take all necessary steps to prosecute defaulters for wilful negligent, tax evasion, unlawful conversion of government property, etc. as the case may be”.

Taofik Salako, Deputy Group Business Editor

Transcorp Hotels Plc plans to invest in more new businesses across Africa to drive sustained growth and ensure optimal value for shareholders and other stakeholders.

Its Managing Director Mrs Dupe Olusola, who spoke during a facts-behind-the-figures event yesterday at the Nigerian Exchange (NGX) Limited, said the leisure and hospitality company aims to achieve incremental growth and mitigate the impact of COVID-19 on global hospitality industry through continuous investment in new businesses.

Mrs Olusola, who was honoured with beating the virtual closing gong for the close of the stock market yesterday, presented the underlying operational details that led to Transcorp Hotels’ impressive first quarter 2021 performance.

“Our first quarter 2021 performance was quite impressive with a total revenue of N3.8 billion which is above budget of N3.15 billion by 21 per cent. This impressive performance was driven majorly by our intensive drive for leisure and staycation and unique packages for key events and activities such as the new year festive package in January, valentine’s package, mother’s day package, group conference and events activities from major companies and parastatals,” Mrs  Olusola said.

She said the company will continue to invest in new businesses and asset-light initiatives that leverage technology to increase its footprint across Africa.

She outlined that the company recently launched Aura, a digital platform for booking quality accommodation, great food and exciting experiences while it also recently commissioned a purpose-built co-working space at Transcorp Hilton Abuja, which it called Workspace by Transcorp Hotels.

According to her, there are plans to expand this co-working space initiative to other locations.

She pointed out that Transcorp Hotels is also developing a 3,000-capacity event centre at the Transcorp Hilton Abuja, which will cater to an existing demand for suitable venues to host medium to large scale events such as trade fairs, concerts, weddings, and religious programmes.

“We have also engaged other strategic and cost optimizing initiatives across both our hotels in Abuja and Calabar, as we increase focus on our leisure and staycation business segments. We will constantly continue to challenge ourselves to ensure that we meet the diverse customer needs and provide excellent experience across all touchpoints,” Olusola said.

Divisional Head, Listings Business, Nigerian Exchange (NGX) Limited, Mr. Olumide Bolumole expressed pleasure at Transcorp Hotels’ interaction with the market.

He noted that Transcorp Hotels was recently at the Exchange to commemorate the formal listing of its N10 billion rights issue.

“We are pleased that the company has again chosen to utilise our platform to engage the market about its financial performance as well as strategic and operational development within the organization through a FBF presentation,” Bolumole said.

He noted that considering the impact of COVID-19 on the hospitality sector, organisations will need to reimagine how they operate to navigate the uncertainties of doing business in the new normal.

He acknowledged Transcorp Hotels’ commitment to innovation, allowing the company to serve customers beyond the hotel premises through new businesses like Aura by Transcorp Hotels.

He said Exchange recognises the efforts being made by the board and management of Transcorp Hotels Plc towards achieving business continuity by enhancing the organization’s operational efficiency.

“We congratulate you on the successful unveiling of new product lines and efforts towards repositioning the organization, thereby reassuring investor confidence in the company,” Bolumole said.

An online market firm, Bongalow Nigeria and Ramos of Lagos Realty have partnered to provide home financing to Nigerians home and abroad, especially in the United States (U.S.) and the United Kingdom (U.K.).

In a statement, it stated that the product is designed in such a way that one walk you through the entire mortgage process from start to application to closing and Ramos of Lagos Realty has guided over 100 clients in buying or renting their homes yearly since they started.

Ramos of Lagos Realty said about 32 per cent of their clients required some form of financing/payment plan to enable them afford their dream home and the need to bridge this gap led them to Bongalow Nigeria.

Bongalow Nigeria has the unique capability to make connections that match people to the best mortgage solutions for them and in doing so, get sustainable results for clients.

This consolidation of capabilities provides both brands with added strengths that will allow them to be an end to end solution for Nigerians home and abroad. Simply put, this partnership will help to source homes and provide finance solutions seamlessly.

Bongalow Nigeria and Ramos of Lagos Realty would ensure that every Nigerian, home and abroad, gets the dream home they deserve with ease.

It urged interested Nigerians to visit RamosofLagosrealty.com/mortgage and get started.

 

 

Financial and human capital technology provider, SystemSpecs, has revealed the list of inspiring personalities who will serve as judges in this year’s edition of its annual Children’s Day Essay Competition.

They include Bayo Adekanmbi, MTN Nigeria’s Chief Transformation Officer; Jumoke Lawoyin, techpreneur and Chief Executive Officer at Lucy.ng; and Emeka Okoye, Chief Semantic Architect and Knowledge Engineer at Cymantiks Nigeria.

This disclosure comes as the deadline for the submission of entries into the essay competition was also extended till April 30th, 2021. The extension is in response to requests by schools and students affected by the irregular school terms regime across Nigeria, to enable them participate in the competition.

Meanwhile, other judges appointed to the evaluation panel are Wale Fatade, accomplished journalist and country commissioning editor at The Conversation; Chukwuemeka Fred Agbata Jnr., technology entrepreneur, business coach and returning judge of the competition; Jide Ayegbusi, a social entrepreneur and founder of the tech-led education-focused platform, Edusko; and Funmi Oyatogun, celebrated travel experience creator and environment crusader.

“At SystemSpecs, we are convinced that a strong technology foundation is necessary to reposition Nigeria to compete favourably in the comity of nations and thrive in contemporary times. Through our Children’s Day Essay Competition, we seek to stimulate young Nigerians to become more technologically aware and better positioned to creatively apply technology as a natural response to everyday challenges around them,” said ‘Deremi Atanda, an Executive Director at SystemSpecs.

Bayo Adekanmbi, the Chief Transformation Officer of MTN Nigeria, also doubles as the convener of Data Science Nigeria, a non-profit that seeks to build a local AI-led ecosystem that will position Nigeria as a global outsourcing hub for Big Data projects.  At MTN, he leads the team that proactively introduces specific measures to help accelerate the company’s business performance and innovations. Before then, he was the firms’ Chief Marketing and Strategy Officer.

 

A lawyer by training and a tech entrepreneur, Jumoke Lawoyin is the co-founder and Chief Executive Officer of Lucy.ng, arguably Nigeria’s largest online gift store. She is a graduate of the University of Ibadan and the University of London. At Lucy.ng, she combines her cherished experiences in procurement, research, business development, management, and critical thinking to drive the day-to-day operations of a business that powers the gift procurement needs of a large number of organisations in corporate Nigeria.

Emeka Okoye is the Chief Semantic Architect and Knowledge Engineer at Cymantiks Nigeria. He helps governments, private organisations and cities become smarter by using semantic technology to harness their data and information assets through contextual data modeling, knowledge representation and ontology engineering to exploit the opportunities possessed by data, AI and analytics for digital transformation.

Other judges on the evaluation panel are from various walks of life including technology, security, law, media, and the arts. They are financial and tech journalist, Abubakar Idris; media consultant and author, Ayodele Arowosegbe; co-founder of LeedsNG, Dr. Hafis Bello; tech content provider of repute and returning judge of the competition, Ifeoluwa Ogunfuwa; UK-based IT Governance, risk and control advisor, Dewale Otolorin; health law and bioethics enthusiast, Olo Egbokhare; and Chief Communications Consultant at The Comms Avenue, Adedoyin Jaiyesinmi.

It is the duty of the distinguished panel of judges to evaluate and select winning entries for the top prizes in the junior and senior categories of the competition. They have the responsibility of bringing to national consciousness and recommending implementation options of the bright ideas espoused by participants from across the country.

SystemSpecs, the organiser of the annual competition, is the 29-year-old software giant known for its innovative payment solution – Remita, payroll and HR solution – HumanManager, and Paylink – an e-commerce platform for SMEs, non-profits, and individuals.

Winners of the 2021 edition of the SystemSpecs Children’s Day Essay Competition will be announced on Children’s Day, May 27, 2021.

 

Access Bank Group Plc’s audited result showed an improvement in the non-performing loans (NPL) ratio. NPL improved from 5.80 per cent in 2019 to 4.30 per cent in 2020. The lower ratio reflected successful approach to loan recovery adopted by the Group which is fast gaining the reputation as Nigeria’s toughest loan recovery machine. The bank’s new investments in technology and rising commitment to Africa trade through the African Continental Free Trade Agreement (AfCFTA) scheme are lookouts to drive its new growth phase, writes GROUP BUSINESS EDITOR, SIMEON EBULU.

For banks and other financial institutions, creating quality loans is one way of staying in business. It not only guarantees sustainable profitability, it also ensures growth of the businesses it supports.

Access Bank Plc has for years supported businesses through quality loans. The bank has also risen to the challenge whenever its loans got bad.

Access Bank has one of the toughest loan asset portfolio managers and a delinquent asset recovery team. The toughness of asset managers has enabled the bank to push its nose ahead of sector rivals concerning improved asset quality.

The group witnessed its highest NPL ratio in 2019 while 2018 advertised its lowest just before its move to merge with Diamond Bank Plc in 2019.

Several innovations and expansion plans by Access Bank has lead to uptick in its performance in the full year 2020 financial results.

Access Bank recorded gross earnings of N764.7 billion for the financial year ended December 31, 2020, which was a 15 per cent improvement from the N666.75 billion posted for the comparative period of 2019.

Profit before tax grew by 13 per cent to N125.9 billion from N111.9 billion, despite the high cost of operating the enlarged franchise and the increase in net impairment charge of nearly N43 billion arising principally from a Structured Trade Finance (STF) portfolio in the Access Bank UK.

The  STF impairment is one-off/COVID related and recoverable between the next 12 and 18 months against insurance cover from world class insurers.

Still, profit after tax (PAT) increased from N94.1 billion to N106 billion in 2020 due to 32 per cent rise in operating income, which offsets the rise in impairment charges and operating expenses.

Customer deposits rose by 31 per cent to N5.59 trillion in December 2020, from N4.26 trillion. Likewise, net loans and advances grew by 18 per cent to N3.61 trillion, up from N3 trillion in the previous year.

The board recommended a final dividend of 55 kobo per share bringing the total dividend to 80 kobo per share.

Also, the bank had increased recovery efforts, carrying out major   write-offs and leveraged its sound risk management practices. These improved asset quality improved to 4.3 per cent, compared to its 2019 report of 5.8 per cent.

Beyond the positive results delivered by the bank,  it has continued to leverage  its spread across the African continent and deep investment in technology to reap gains coming from the  African Continental Free Trade Agreement (AfCTA).

The AfCTA trade bloc offers a potential market of over 1.3 billion people and a Gross Domestic Product (GDP) size of over $3 trillion. According to the United Nations Conference on Trade and Development (UNCTAD), there is the potential for intra-African trade to rise to 15.5 per cent as a share of total African trade by 2022 compared with 10.2 per cent from 2010.

For many businesses, securing a seat at the stable ensures that Nigerians can influence negotiations and protect national interests.

While the agreement is not a silver bullet, due to structural barriers to trade, Group Managing Director, Access Bank Plc, Herbert Wigwe, said he saw many benefits to the bank and the various African economies within the AfCTA deal.

In a report entitled: Realigning for Growth released by the bank, Wigwe said the lender  would be optimising and taking maximum gain of the trade agreement by repositioning its operations and payment platforms  to  serve more customers across the continent.

He said Access Bank Group has consistently delivered growth and created value over time  and has  the largest customer base in Africa, with a significant share of digitally active clients. The bank is also becoming an aggregator in Africa by building a global payments gateway, offering holistic trade finance support and offering correspondent banking services.

The bank is also focusing on key markets to support regional trade by targeting new opportunity markets and positioning the bank as a trade and payments gateway to the world.

He identified eight African countries for a potential expansion as it seeks to benefit from the opportunities presented by the AfCFTA.

The bank already operates in 12 countries following a series of acquisitions spanning from Kenya to Nigeria. The markets of interest are Morocco, Algeria, Egypt, Ivory Coast, Senegal, Angola, Namibia and Ethiopia, according to an online presentation emailed by the Lagos-based lender.

It will also use its London-based unit as an “anchor for growth” to expand representative offices in countries such as India, Lebanon and China, Wigwe said.

The African trade pact aims to bolster intra-regional commerce by lowering or eliminating cross-border tariffs, facilitating the movement of capital and people, promoting investment and paving the way for the establishment of a continental-wide customs union.

Access Bank plans to eventually expand into 22 African countries to cushion challenges in some markets, diversify earnings and take advantage of growth opportunities in the region.

The lender, which is looking to transition to a holding company this year, plans to open subsidiaries in insurance brokerage, consumer lending and agency banking as well as payments to boost revenue, Wigwe added.

The bank is equally transforming payments and remittances using cheap forex from international remittances to feed trade, leveraging AccessAfrica connections to wallets and payment platforms.

It is also building on partnerships with financial investors, Development Finance Institutions (DFIs), among others and providing strategic support to protect and grow partners’ value.

Continuing, he said the bank has continued to deliver strong results and is focused on generating sustainable revenue across all income lines.

 

Expansions across Africa thicken

 

Access Bank has also unfolded plans to expand to more African countries as part of a strategy to support trade and finance in the continent and take advantage of the AfCFTA.

For instance, Access Bank Plc recently entered into a definitive and binding agreement with ABC Holdings Limited to acquire 78.15 per cent shareholding in the African Banking Corporation of Botswana Limited (BancABC Botswana).

The transaction, which is subject to regulatory approvals and customary conditions precedent, is expected to close before the end of this quarter. The ABC Holdings is a subsidiary of London Stock Exchange listed group – Atlas Mara Limited.

Access Bank Company Secretary, Sunday Ekwochi, described  Bostwana as renowned for its quality sovereign credit rating and stability with the bank’s market entry expected to further solidify its strategy as, “a strong banking partner in key verticals across retail and corporate banking, including especially supporting trade in payments across southern Africa and sub-Saharan Africa more broadly.”

Speaking on the deal,  Wigwe, said: “We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong, sustainable returns for our shareholders and stakeholders at large, over the medium and long-term.

“The establishment of Access Bank through this acquisition in the Republic of Botswana will position the bank to deliver a more complete set of banking solutions to its clients active in and across the SADC and COMESA regions.”

According to him, the transaction complements the bank’s  recent strategic growth acquisitions in South Africa, Zambia and Mozambique. “We are building a bank of the future that Africans across Africa and the world would be proud of and look forward to welcoming the employees, customers and other stakeholders of BancABC Botswana to Access Bank,” he said.

BancABC Botswana is the fifth largest bank in Botswana and is a very well-capitalised banking institution poised for growth and success in its local market. The bank has been perennially profitable, given an existing high-quality retail loan book with opportunities and scope for diversification and further expansion into corporate and small medium enterprises (SME) lending.

Continuing, Wigwe explained that across Africa, there is an opportunity for the bank to expand to high-potential markets, leveraging the benefits of AfCFTA. He said AfCFTA, among other benefits, would expand intra-Africa trade and provide real opportunities for the continent.

He stated that the plan is for the bank to establish its presence in 22 African countries so as to diversify its earnings and take advantage of growth opportunities in Africa.

 

Guaranteed  commitment to shareholders

 

Access Bank Plc has consistently assured its shareholders of improved performance and returns as it continues to implement its pan-African expansion programme.

At the Annual General Meeting (AGM) in Lagos, which was also streamed real time online, directors of the bank assured that it has been well-positioned for sustained growth and better returns, and shareholders will continue to see higher dividends in the years ahead.

The assurance came as shareholders approved payment of a final dividend of 55 kobo, in addition to an interim dividend of 25 kobo, bringing total dividend per share for the 2020 business year to 80 kobo. In the audited report and accounts for the year ended December 31, 2020, Access Bank had grown net profit by 13 per cent to N106 billion in 2020 as against N94 billion recorded in 2019.

The assurance also came on the heels of the release of the first quarter (Q1) results of the bank for the period ended March 31, 2021, showing considerable growths across all key performance indicators.

Chairman, Ibadan Zone Shareholders Association (IBZA), Mr. Eric Akinduro commended the bank for riding through the COVID-19 pandemic and delivering improved results that led to the declaration of 80 kobo dividend.

He said the various acquisitions by Access Bank across Africa showed that the institution is strong, assuring the bank of shareholders’ supports.

Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said Access Bank’s expansion drive shows that the bank is really committed to its aim of playing a leading role in the African continent.

He expressed optimism that the expansion drive would lead to better returns to shareholders and other stakeholders in the years ahead.