Author: The Nation

  • Osimhen welcomes Onuachu’s striking competition

    Osimhen welcomes Onuachu’s striking competition

    Victor Osimhen has welcomed the growing competition for places in Nigeria’s striking department, praising fellow strikers Paul Onuachu, Kelechi Iheanacho and Sadiq Umar as they enjoy fine seasons in Europe.

    Over the weekend, Onuachu continued his superb form, hitting a brace for Genk in their 3-2 loss at Royal Antwerp. It was his sixth goal in five games, and his ninth in 10 games for the Belgian club.

    The goals took the forward’s league tally to 29 for the season and 33 in all competitions, including the two he scored for Nigeria during the last international break.

    Iheanacho has had his career ups and downs, but is now enjoying a breakout season with Leicester City. The former junior international has scored 10 goals in his last seven appearances for the Foxes. Umar scored his 16th goal of the season for Spanish Segunda division side Almeria over the weekend, as they continue their push for promotion to La Liga.

    All of these performances have impressed Osimhen, who has been established as Gernot Rohr’s first-choice Nigeria striker. The forward is welcoming the competition, and says it is good for the national team.

    “I think they are all doing quite well — Paul Onuachu, Kelechi Iheanacho and Sadiq Umar,” he told ESPN. “Of course I am happy for them and I’m happy about their form.

    “And of course, being able to capitalize on their current form for the national team is really important. Kelechi has been doing quite well and he has been scoring goals. Onuachu also, I think he’s the leading goalscorer in Europe which is very important.

    “He gave us the winning goal in the game against Benin Republic. It shows that we can capitalize on their form and count on them.”

  • What will he say next?

    What will he say next?

    Hardball

    Minister of Defence Bashir Magashi, a retired major general, easily attracts attention with his remarks seemingly meant to reinforce the country’s fight against increasing insecurity.

    For instance, he tried to boost the morale of counter-insurgency troops he visited at the Theatre Command Headquarters in Maiduguri, Borno State, on April 18.  “You should not be afraid of the bullet because it can even meet you in the house if it means you dying by it,” he told the fighters, adding, “But if you are not meant to die by the bullet, it will never kill you even at the heart of a war.”

    It is unclear how many of the fighters he addressed in such fatalistic terms were impressed and inspired.  His fatalism was out of place. His remarks were reckless.

    By implying that the fighters might be afraid, he unwittingly drew attention to their reported situation in the theatre of war. It has become clear that the military is ill-equipped, and poorly equipped fighters are likely to lack confidence in the face of better equipped enemies.

    As defence minister, he has a role to play to ensure that the troops are not only well equipped but adequately equipped. He should concentrate on remedying this critical deficiency, rather than exhibiting the mentality of a fatalist.

    In another instance, in February, Magashi had similarly said the wrong thing at the wrong time. Speaking to journalists following the mass abduction of students from Government Science College, Kagara, Niger State, he asked whether tackling the security crisis was solely the responsibility of the military.  “It is the responsibility of everybody to be alert and ensure safety when necessary,” he declared.

    He then went on to give what could be called a public lecture during which he defined the security role of members of the public. He said: “We shouldn’t be cowards. Sometimes bandits come with about three rounds of ammunition and when they fire shots everybody will run.”

    He wondered why “people run away from minor, minor aggressions,” saying, “We should stand and face them. If these people know that the people have the competence and capability to defend themselves, they will run away.”

    Understandably, many people interpreted his lecture as a promotion of suicide. Asking unarmed citizens to confront armed bandits didn’t sound like reasonable advice. Instead of addressing the security crisis that has given rise to widespread banditry, he ridiculously chose to shift the responsibility for protection onto those who demand protection from the authorities.

    What will he say next? He needs to watch his mouth.

  • The voter as antihero

    The voter as antihero

    By Olatunji Ololade

    Materialism has failed the world over. Compulsive philistines and prescient think-thanks attack grievous social problems – mostly self-inflicted – with paper bullets. They are peashooters trying to collapse Gibraltar.

    In Nigeria, however, we see combustive ‘change’ pulse with lust and self-interest among political personae. But the electorate do not know better. They repeatedly fall for the same ruse.

    Both politicians and electorates are, however, caught in a familiar cycle of cannibalism, often enacted by characters, who attack and retreat in obsessive rhythms of victory and defeat.

    The electorate has caught Sappho’s fever; that is why voters recycle familiar tormentors via the ballot box. They have caught Olohun Iyo’s bug hence they sway to the melody of supernal choirs and vanish to the lure of infernal conductors – or deceptive politicians if you like.

    The politics of domination by deceit, violence, and deep pockets is implicit in Nigerian culture, and this escalates at charged historical moments, like the present. Even in the throes of the coronavirus aka COVID-19, large segments of the electorate ignore the ravage of bad governance, and go to war, online and offline, to defend the honour of the presiding oligarchs.

    Ultimately, they guard their tormentors’ right to keep exploiting and dominating them. We have seen this happen in successive ‘civilian’ governments from 1999 to date. Its a function of ignorance. I would call it the ritualisation of eye and mind to witlessness.

    The bêtise of such heedlessness manifests around us in real-time. The eye and mind elect narcissistic, bigoted personae as galvanizing objects, and then formalise the relation via votes at election time.

    Ignorance is the first rung of the ladder leading to death. It precedes the plunge to nothingness. Nigeria must be guided by this truth through the pandemic. Our increasing vulnerability to COVID-19, for instance, is yet another manifestation of our plummet down the steep vale of ignorance.

    It was ignorance that drove state governors to acquire toxic chemicals to rid the public space of COVID-19 via fumigation. Against the rule of wisdom and uncommon sense, they dumped toxic chemicals on communities in their domain as a preventive measure and solution to COVID-19, while their aides cheered and polluted mediasphere with contrived photo ops.

    Cleaning with simple disinfectants and providing sanitisation stations in public places were cheaper, more sensible alternatives but supposed state agents needed to flaunt fumigation gizmo in exaggerated onslaughts against COVID-19 in public space.

    Disinfectants are ill-suited for dispersal via fogging machines, they are solvents applied to surfaces to kill microbes argues Paul Erubami. Rather than drown the citizenry in poisonous fumes, the governors should redirect their energies at more simplified testing, humane quarantine measures, contact-tracing, physical distancing awareness, and efficient distribution of palliatives.

    Ignorance and greed stirred the initial reluctance of the health and science ministries, to explore opportunities presented in the nation’s herbal endowments at fighting COVID-19 and any homegrown palliative or vaccine by any other African country.

    For instance, prominent public functionaries, revealed a source, wished that Madagascar’s herbal therapy, COVID-Organics,  failed at clinical trials because they were wary of losing contingency funding and ‘lootable’ loans accessible via international lenders, she said.

    A clinical evaluation of the spending of the contingency fund of NGN984 million ($2.7 million) reportedly released to the Nigeria Centre for Disease Control (NCDC) and the additional NGN6.5 billion ($18 million) mooted afterward must be done by relevant state agencies, the media and civil societies.

    Likewise, the expenditure of the N500bn COVID-19 Crisis Intervention Fund purportedly established for the upgrade of healthcare facilities at the national and state levels, must be done to ascertain if the fund administrators truly committed the funds to target projects.

    Right now, there are no social safety measures and intervention schemes for society’s handicapped: the deaf, blind, homeless are left to the ravage of the elements. Leprosariums, orphanages, geriatric homes, to mention a few, are ignored in ongoing intervention efforts.

    Before COVID-19, Nigeria grappled with terrorism, kidnap for ransom, child and sex trafficking, armed robbery, homelessness, mental health problems, divorce, collapse, and corruption of the family unit. These are social problems requiring sustainable welfare policies but the country’s lack of a visionary and humane leadership denied the citizenry such benefits.

    There is currently no social welfare programme that offers health care assistance, non-discriminatory entrepreneurial loans, food stamps, and unemployment compensation, among others to deserving citizenry divides. The absence of such initiatives wreaked untold havoc on the citizenry at the outbreak of COVID-19, leading to increased crime, for instance.

    While government intervention efforts focused on the poor citizenry, presumed middle-class segments have lost their jobs, suffered arbitrary salary cuts, and lack of access to welfare relief that could help them cope with the economic hardship foisted by COVID-19.

    There are no housing subsidies, energy and utility subsidies, and assistance for other basic services to individuals that are most affected by the pandemic, notes Ozili.

    At the backdrop of these challenges, the numbers of the unemployed sky-rockets. A 2019 World Bank report shows that Nigeria created about 450,000 new jobs in 2018, partially offsetting the loss of jobs in 2017. And while over five million Nigerians entered the labour market in 2018, the number of unemployed increased by 4.9 million in 2019.

    More radical estimates indicate that over 18 million youths were unemployed by the end of 2019. Many more have lost their livelihoods in the wake of COVID-19.

    Even the purported employment of 774, 000 youths by the federal government as part of a Special Public Works Programme aimed at cushioning the economic effects of COVID-19 has run into a gridlock. Of course, it was an ill-fated, knee-jerk reaction to rising unemployment and the pandemic.

    Nonetheless Nigerians must use this crisis as an opportunity to reconstruct the power equation, redistribute social privileges, reinvigorate civil societies, and dormant economies.

    The public healthcare system must be overhauled with better social safety nets and driven to earn foreign exchange. And this can never be achieved by recycling the incumbent ruling class in power, come 2023.

    Something’s got to give. Renaissance hierarchies are dramatized in the noisy climax of gladiator politics. The average voter must re-emerge decisively as political personae of a renaissance Nigeria, come 2023.

    He must re-emerge as the culture hero and worker of marvels: the farmer, painter, plumber, sculptor, street trader, student, unemployed graduate, and manual labourer must reprise their roles as fearless change-makers, irreconcilable to visions of them as pawns and inferior social elements.

    In the ongoing duel with the pandemic, the ultimate purpose of families, states and nations, is to breathe. Its a sublime irony: man labours to breathe in an atmosphere corrupted by his labour for material wealth.

    The relentless drive for profits birthed COVID-19, the nondescript virus that tamed the champions of industry, nuclear warlords, mortal destroyers of the ecosystem, political minions, and juggernauts.

    To survive at a time like this, the Nigerian voter must quit participating in heavily choreographed elections, in which the demands of corporations, individuals, and banks are paramount.

    He must vie to tilt power in Nigeria’s interest. It’s time to take back what’s ours. Yet slogans and scathing bromides are hardly the way to go in reclaiming Nigeria’s soul from the fangs and talons of raptorial oligarchs.

  • How I escaped death covering the Civil War, by Sobowale

    How I escaped death covering the Civil War, by Sobowale

    He is a man of many parts. But his contributions to educational development, especially Journalism/Mass Communication, have etched his name on timeless marble. Welcome erudite scholar and accomplished journalist, Prof. Idowu Akanbi Sobowale. Widely celebrated as a “teacher of teachers”, the multidisciplinary journalist who turned 80 recently is credited with producing hundreds of scholars and journalists. In this interview with EVELYN OSAGIE, he recounts how he escaped death covering the Civil War, his take on succession calls, Imo attract among others.

    My Nigerian civil war experience

    As I’ve said, I don’t think secession is an option. It shouldn’t be. I also don’t think going to war is an option. It shouldn’t be, because those who have seen war or worse would pray that it never occur again. Throughout the Nigerian civil war, I was an active participant as a war correspondent. I operated in the three divisions of the war. The first division that was taken over by late Brigadier General Shotanmi; the second div., and Marine Commando, third division headed by Benjamin Adekunle. And in fact, I escaped death by whiskers at Ore, the day the Biafrans came and destroyed Ore. And we left just about five minutes before they routed every soldier that were there. They had stationed the soldiers that were to be taken to the front which had been taken from the various training centres and camped there so that they would be hearing the sound of gun. So that when it was time for them to move they would not be afraid. On this day, we (Yusuf Oladele, my photographer and I) had written our stories and given them to somebody who was coming to Lagos. Then, we went to Ondo, when we came back, we decided to go to Lagos with my motorcycle. We rode it at the first div. And as soon as we left, the Biafrans came and exterminated all the soldiers there. There was no way we would have escaped. In fact, we had not gotten to Ijebu Ode when news came that we got the news; and that they were on their way to Lagos, Abeokuta and Ibadan. And when we got to Ijebu Ode, it was said that the Biafrans were on their way to Ikorodu. Such were the stories until we got to Lagos; and the whole place was in panic.

    At the third Marine Commando, I saw death face to face . And at the first div., we went to – I think it was either Ogboloeke or Ogboloafo that was a spot for long and protracted conflict between the Biafrans and the Nigerian troops. This day, they said they had left there for a while; then Shotanmi asked Yusuf and me to accompany him to see what the place was like. Not long after we got there and we were going round, we were in an abandoned school when a soldier came to tell Shotanmi that the Biafrans had returned. Then Shokanmi looked round and saw a jute bags and asked Yusuf and I to enter, cover ourselves and remain still. He said they would do their best to defend us and if they didn’t succeed, it would not have been for lack of trying. He, then, went out with the soldier, and later somebody else came and said that they had repelled them. We were asked to come out of the jute bag.I  had never been so afraid in my life like that day because that would’ve been the end. A time was when we were going to the war front with a bammy wagon, a big lorry, loaded with soldiers supply. We had to stand at the tail end with soldiers. We just got to a point and heard the explosion of a riffle. I think the cocked gun of  soldier standing next to me triggered off when we got into a bump , and its bullet went pass me by inches. It could’ve entered and blown off my skull but God saved me. There are so many instances like that.

    When we got to Oron and wanted to take the pontoon to Calabar, we saw the pontoon someway off on its way to Calabar. And we were thinking of what to do: where to sleep, when we saw the speedboat that Major Isaac Adaka Boro used in crossing from Calabar to Oron. It was on the last day he would go to the front. And that was his last journey to the front because the following day he was announced dead. It was the same boat we took back to Calabar. Then in the middle of the Atlantic Ocean, there was this storm which turned the boat and off into the air I went. Yusuf and others had thought that was the end, but when it moved and I landed, I landed on the edge of the boat and then they pulled me inside. There is no way anybody can forget such.

    My first assignment in the North

    I was in the North when the first coup started. And the first assignment I covered in the North was the visit of Ladoke Akintola to Sir Ahmadu Bello. It was the day I got to Kaduna on my way to Kano as the correspondent in Kano for the Daily Times that the first coup occurred. I was tired because we went by road for the Daily Times distributing paper. I was tired and sleepy when asked to go for sightseeing round the city for me to see how the city in the car. And as soon as we entered the car, I slept off. Then all of a sudden, the car came to a halt. I saw everybody crouching on the floor, chanting Rakandede Rakandede Rakandede at another car. And when the car sped off, they said that was the late Bello seeing Akintola off to the airport. So we went back home and slept. At 2am, we started hearing the sound of guns, and, the people I was staying with(Alhaji Mustapha, the northern editor of Daily Times and some others) said the thugs from the West had come. And that no Westerner in the North was going to go safe. That heightened my fear because I had just left the comfort of my state and region to come in that. Later at about 6am, we decided to go round and see what had happened.

    When we were going, we saw the military or police in training with their white singlet and khaki shorts, standing in strategic places. We went to Bello’s house and when we got there, we saw a tall individual rapped with blood soaked white linen on the ground. That infuriated my host the more that the thugs had come with boldness to kill Bello, that: “everybody must be killed”. Still in the morning, about 7 O’clock, we went round again and the trainees had been replaced with stern-looking soldiers, manning even the offices that were not manned before. Then we went back to file our stories to Lagos. We got to the teleprinter; it was dead. We picked the phone to dictate the story; the lines were dead. Then, we decided to go to Ibadan; we got there and it was the same. Daily Times then had teleprinters in each of its regional headquarters – Ibadan, Enugu, and Kaduna. We contacted Enugu, and still nothing. Then not too long after, we saw military patrol vehicles with stern-looking soldiers. They stopped to disperse people anywhere they saw three persons standing. And everyone was still wondering what was happening when a little after seven, Chukwuma Kaduna Nzeogwu came on the line to say that a coup had occurred; and they had killed all the leaders of the regions. That was when everybody heaved a sigh of relief until later when people got to know that the death occurred only in the North and then in Ibadan with Akintola.

    My take on the IGP saga

    That would not be the first instance in Nigeria; they are too numerous. In the past, many had heard of their removal from office from the radio. I’m not sure it should be strange to Adamu himself, because he would’ve gone while the ovation was loudest.

    My thoughts on the attack in Imo

    It would not be the first time: in Abuja, they had done it, taking it to the Police headquarters and the UN office. It only shows there is no security in Nigeria at all.

    My view on the way forward

    I think Nigerians should now decide to take their destinies in their hands. We have been too dozy in this country. We are even afraid to ask questions, not to talk of taking actions. I’m not advocating violence because I’m scared of violence either because of what I saw during the war or because of what I have seen after the war. But it appears to me that we have not learnt anything; or we have not learnt enough from the occurrences of the past.

    However, the major focal point is the leadership of this country: they should now be thinking of how to distribute the bounties that God has given this country, equitably amongst the various groups. The lawmakers in the various houses are supposed to, and I’m using my words advisably now, as supposed to be representing us. How much representation are they making? But unfortunately even those who didn’t know anything or have a hand in what happened or is happening are going to share from the repercussions of the neglect.

    Why Lagos mourned Jakande

    It couldn’t have been otherwise. When he was arrested by the military after the coup, market women and men in the state got together and went to the military. They said they knew that politicians were thieves; and Jakande being a politician must have been a thief, but they wanted to know how much he had stolen because they wanted to pay it back. If people could do that when he was alive, you can imagine how people would feel when they learnt that he had transited to the world beyond.

    Let me give you more examples of how mindful of the ordinary person he was: he worked very hard. He never left office earlier than 8pm. Then when he got home – I’m giving you his schedule on a daily basis – when he got home, there was not moment for rest because scores of people, if not, in hundreds, would have been waiting for him. It was his habit of holding court every day. And that was why his commissioners, special advisers and permanent secretaries didn’t like going to his house in the evenings. Once you got there, you would not be able to leave until when the last person had left. And he would listen to everybody, whatever the complaint and would take copious note and send to the official directly in charge of that complain that was present, saying he wants a response in 48hours. And he would have told the complainant to come back in 48hrs for the feedback. He did that consistently throughout his administration. So if people who had benefitted from that, got emotional when he passed, it should not be a surprise.

    Lessons for today’s leaders in Jakande’s example

    Men like him cannot die. He would live forever. The examples are there for anybody who wants to learn to see. After his death, some media enumerated the things that he did in four years – only four years, because his administration was terminated the third month of its second term. If you put all the things they listed together, without exaggeration, they surpassed those of the governors that worked for eight years. So if you’re seeking office, seek it for the purpose of service. Do not do it because you want to benefit from it. Jakande was never one minute late for meetings (in the ones I attended with him). And the meetings usually ended late but Jakande will not stand up once to say he was going to toilet. He would lick his sweets and nothing more.

  • Makinde approves N279.5m for council poll’s ballot papers

    Makinde approves N279.5m for council poll’s ballot papers

    By Yinka Adeniran, Ibadan

    Ahead of the May 15 local government election, Oyo State Government has awarded the printing of 2.6million customised ballot papers to the Nigeria Security Printing and Minting PLC at a cost of N279.5million.

    The cost of the printing, which is put at N100 per sheet, also consists of N19.5million as tax and others.

    The government has approved the award of rebuilding a new state government lodge in Asokoro, Abuja at a cost of N1.2billion.

    The decisions were reached at the weekly State Executive Council meeting held yesterday at the Executive Chamber of the Governor’s Office, Agodi Secretariat, Ibadan.

    Briefing reporters after the meeting, the Commissioner for Information, Culture and Tourism, Dr. Wasiu Olatunbosun, said the Governor Seyi Makinde administration decided to award the printing of the electoral materials to a neutral body to show transparency, fairness and credibility.

  • Shelve indefinite strike plan, Ekiti varsity begs ASUU

    Shelve indefinite strike plan, Ekiti varsity begs ASUU

    By Rasaq Ibrahim, Ado-Ekiti

    Ekiti State University, Ado-Ekiti, yesterday appealed to the workers of the institution under the aegis of Academic Staff Union of Universities (ASUU) to shelve the proposed plan to embark on indefinite strike.

    The academic workers are warming up to begin indefinite strike tomorrow to express their grievances about alleged neglect of the institution and its workers by the state government.

    The university, which made the appeal in a statement by the Head, Directorate of Information, Bode Olofinmuagun, said the institution cannot withstand the strike, as it will disrupt its academic calendar.

  • ABCON urges CBN on cryptocurrency policy

    ABCON urges CBN on cryptocurrency policy

    By Collins Nweze

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has called on the Central Bank of Nigeria (CBN) to introduce measures that will counter the advantages of cryptocurrencies as a channel for diaspora remittances.

    Making this call in its Quarterly Economic Review for the first quarter of of the year, ABCON said such measures were necessary to redirect diaspora remittance inflow away from cryptocurrency exchanges to official channels.

    The group lauded the CBN for the N5/$1 rebate scheme introduced to encourage diaspora Nigerians to use official channels for remittance transfer. It, however, noted that the apex bank needs to address other issues driving the patronage of cryptocurrency exchanges for remittance transfer.

    “It is noteworthy that public acceptability for cryptocurrency exchanges are rising which could be quite accountable for the wide drop in diaspora inflows to Nigeria. Insecurity in the country is giving it greater prominence as investors and citizens are finding cryptocurrency a safe haven for their wealth in case of any eventuality.”

    ABCON also expressed concerns over the country’s huge unemployment rate.

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    It stressed: “It is absolutely necessary for government to apply radical approaches with the use of both conventional and unconventional economic and political tools to redress the trend.

    “The cost of governance in Nigeria, which  is believed to rank among the highest in the world, must be drastically reduced to support social security funding.

    “The National Identification Number (NIN) exercise should be immediately linked to social security process.

    “Fiscal policy must interplay with Monetary to promote critical sectors of the economy where youths are employable. These include but not limited to agriculture, raw materials production chain and social/security services.”

    ABCON explained that in most emerging markets, bitcoin transfers surged last year, as the pandemic exposed the cheaper and more efficient digital remittance services.

    “Migrants sending money across borders to their families prefer the minimal transaction costs of cryptocurrency exchanges against the exorbitant costs of traditional money transfer companies like Western Union.

    “These exchanges override the political complications of official channels.The global reach of cryptocurrencies avoids the inflation risk inherent to official currencies, especially in politically unstable countries reliant on fickle foreign investors.

    “Thus, while we commend the efforts of CBN in introducing the package of Five Naira for One Dollar transfer, it can be seen from the analysis above that the challenges exceed just non-payment of foreign currency by the International Money Transfer Operators (IMTOs) and the exchange rate.

    “Strategies that satisfy the most sensitive of these advantages of cryptocurrency exchanges must be introduced to redirect flows to the official channel,” it said.

  • FirstBank upgrades website

    FirstBank upgrades website

    By Collins Nweze

    FirstBank Limited has announced the launch of its newly designed website.

    The website has been upgraded with features that are streamlined to reinforce its role in delivering seamless banking and technology solutions to its customers across the world.

    It was configured with modern design and improved functionality that eases customer experience while carrying out various activities on the site, including electronic banking.

    Non-customers are also able to open an account, putting them at an edge in the industry as they establish a relationship with the Bank that puts YOU, its customers, First.

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    The new website adopts a fresh, magazine-style look and feel for easy navigation in order to promote the access to essential information for its customers, FirstMonie agents, prospective agents and the public.

    This upgrade also guides one to make well-informed decisions about one’s personal, business and private financial needs.

    FirstBank Group Chief Executive Officer (CEO), Adesola Adeduntan,  said: “As one of the key contact points to existing and potential customers, the bank’s website remains a gateway to our business, supporting our unique value propositions and financial services solutions. As such, we are committed to continuously improve the overall user experience through intriguing content quality, exciting features and ease of navigation.’’

  • Union Bank launches UnionPro

    Union Bank launches UnionPro

    By Collins Nweze

    Union Bank has unveiled UnionPro, a product designed to provide tailored financial services and solutions to supermarkets and large retail chain stores.

    Union Bank’s Divisional Executive, Commercial Banking, Gloria Omereonye highlighted the key role of large retail stores and supermarkets in boosting the economy.

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    She outlined the benefits of UnionPro, reiterating the bank’s strategic approach to developing innovative services that support its customers.

    She said: “We are proud to support local businesses through tailored products and services that ease the challenges of doing business in Nigeria. With UnionPro, we are making a commitment to work closely with large retailers, providing the necessary support they require to grow and expand their businesses.”

  • Analysts place buy on Access Bank over growth outlook

    Analysts place buy on Access Bank over growth outlook

    Access Bank Plc is a good stock to buy as it has potential to sustain overall growth and profitability in the period ahead.

    Analysts at United Capital Plc, a publicly quoted investment banking group, at the end of comprehensive analysis of full-year earnings report of Access Bank for the year ended December 31, 2020 and the outlook for the bank, placed buy rating on the first tier bank.

    Analysts stated that Access Bank has shown resilience in a tough environment and the structure and diversity of its operations should sustain top-line and bottom-line growths in the current business year.

    “We expect Access Bank to sustain top and bottom-line expansion in 2021. While non-interest income growth should taper going forward, as the economy stabilises, we imagine that rebounding asset yields, supported by massive balance sheet size and gains from expansion activities, should spur interest income growth,” United Capital stated.

    According to analysts, the well-diversified nature of the loan book of the bank is expected to sustain asset quality and thus keep non-performing loans and cost of risk within prudential limits.

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    With these, analysts stated that they expected pre and post tax profits to remain broadly stable in 2021, after the bank grew pre-tax profit by 13 per cent from N111.9 billion in 2019 to N125.9 billion in 2020.

    Analysts said while there were concerns about the retracement in the yield environment which has resulted in a significant spike in risk-free rate assumption and reduced the appetite for riskier assets such as equities, Access Bank’s shares remain a good buy with possibility of double-digit capital appreciation of about 14 per cent.

    Analysts noted that with its string of acquisitions and expansion across the African continent, including Cameroon, Kenya, Zambia and South Africa, the management of the bank plans to leverage the African Continental Free Trade Area agreement to expand its footprint to 20 countries across Africa.

    “As such, in addition to the already concluded acquisitions, plans are currently in place to enter Morocco, Algeria, Egypt, Ivory Coast, Senegal, Angola, Namibia and Ethiopia. A sum of $60 million was paid to acquire south Africa’s Grobank, a major milestone in the bank’s foray into the south African market and a critical factor in driving intra-African trade by widening its trade finance operations,” United Capital stated.

    According to the equities research report, on the proposed reorganisation of the bank into a holding company structure, the management of the bank plans to also accomplish an expansion plan outside Africa by setting up representative offices in China, India and Lebanon, using its London operation as an anchor for growth.

    The Access Bank Group will be organised into Nigeria, Rest of Africa and international, Payment Business, Consumer Lending and Agency Banking and Insurance Brokerage.

    “The overall objective of the structure will be to create new revenue lines at minimal risk, diversify earnings, and support international expansion,” the report stated.

     

    The audited report and accounts of Access Bank for the year ended December 31, 2020 showed that gross earnings rose by 15 per cent to N764.7 billion in 2020 as against N666.8 billion in 2019. Top-line analysis indicated that interest and non-interest income contributed 64 per cent and 36 per cent respectively. Non-interest income doubled by 112 per cent from N129.91 billion in 2019 to N275.50 billion in 2020. Net interest income stood at N262.95 billion in 2020 as against N277.23 billion in 2019. Segmental analysis showed growths across business groups and locations.

    Nigerian, home-market business recorded 11.1 per cent increase in turnover to close 2020 at N635.7 billion. The ‘Rest of Africa’ business group grew its top-line by 44.2 per cent to N89.0 billion while Europe business turnover increased by 17 per cent to N49.3 billion in 2020. Profit before tax rose by 13 per cent from N111.9 billion in 2019 to N125.9 billion in 2020. After taxes, net profit grew by 13 per cent to N106 billion from N94.1 billion posted in 2019. The bottom-line was boosted by 32 per cent growth in operating income which offset the rise in Impairment charges and operating expenses.

    The assets base of the group remained strong and resilient with total assets of N8.68 trillion in 2020, a growth of 22 per cent from N7.14 trillion recorded in 2019. The bank’s customer deposits grew by 31 per cent to N5.59 trillion in 2020 compared with N4.26 trillion in 2019, with savings account deposits of N1.31 trillion.

    Net loans and advances totaled N3.61 trillion in 2020 as against N3.06 trillion in 2019. Non-performing loans (NPL) ratio improved to 4.3 per cent in 2020 compared with 5.8 per cent in 2019, riding on the back of N105 billion write-off and recoveries in the period. Shareholders’ funds closed 2020 at N751 billion, an increase of 24 per cent on N607 billion recorded in 2019. Capital adequacy ratio (CAR) improved from 20 per cent in 2019 to 21 per cent in 2020 while liquidity ratio (LR) stood at 46 per cent in 2020 as against 47 per cent in 2019, still substantially above regulatory thresholds.