1 Plc, formerly known as Mobil Oil Nigeria Plc, at the weekend delisted its shares from the Nigerian Exchange (NGX) Limited, ending its 42-year listing on a regular stock exchange.The high-profile delisting shaved off more than N82 billion from the market capitalisation at the NGX.
11 had opted for voluntary delisting after its new owners pushed through shareholders delisting programme as part of restructuring of the downstream oil company.
The NGX stated at the weekend that it delisted the entire share capital of 11 from its Daily Official List in line with the approval of the shareholders of 11 to delist the petroleum company.
NIPCO Investments Limited, a wholly owned subsidiary of NIPCO Plc, had in March 2017 took over the 60 per cent majority equity stake of ExxonMobil Oil Corporation in Mobil Oil Nigeria Plc in a $301 million acquisition deal. It subsequently changed the name of the company to 11 Plc, pronounced as double one. The name change was sequel to the resolution passed by the company’s shareholders at its annual general meeting held on May 24, 2017.
ExxonMobil and Nipco had, in October 2016, executed a sale and purchase agreement (SPA) to sell the former’s majority equity stake of 60 per cent in Mobil Oil Nigeria (MON) to Nipco, an indigenous oil and gas company.
Explaining the rationales for the delisting to shareholders, 11 stated that the delisting of its shares from the NGX would enable the company to implement strategic plans that will improve the performance of the downstream oil company.
The company stated that delisting would enable it to explore strategic opportunities, alliances and collaborations that can bolster earnings and synergised benefits with little or no regulatory obligations.
According to the company, delisting will lead to greater focus and impact on the performance of its performance while it will not have any material changes on its operations, staff and board compositions.
“11 Plc will be able to focus on revenue generation, consider strategic opportunities, alliances and collaborations; and tremendously shift from regulatory, administrative, and financial reporting regulations that companies listed on the Nigerian Stock Exchange must adhere to,” 11 stated.
The company stated that while its shares would no longer be available for trading on the NSE, now NGX, upon delisting, it will continue to operate as an unlisted public company. This raises possibility of its shares being listed and traded on the NASD OTC Securities Exchange -the over-the-counter platform for trading of unlisted public companies.
The company noted that the delisting will not have any impact on the existing employment contracts of its staff as well as the composition of the board of directors.
Shareholders of 11 had at their Annual General Meeting (AGM) on October 14, last year approved a resolution to delist the entire 360.6 million ordinary shares of 50 kobo each of 11 from the NSE.
Under the delisting, shareholders, who prefer to remain with the company as unlisted public company, would continue with the company but those who indicate their dissent will be paid exit consideration. Dissenting shareholders shall be paid off. Upon the expiration of the March 01, 2021 deadline for dissent, 11 was required to set aside sufficient funds and provide evidence of funding to the Exchange, to demonstrate that it has the financial resources to settle any dissenting shareholder.
The interest of dissenting shareholders shall be bought by the company for a consideration of N213.90 per ordinary share, being the highest price at which 11 shares have traded, six months preceding the notice of the AGM at which the resolution to delist was deliberated, as provided by the rules of the NSE.
Once the transaction is approved by the Securities and Exchange Commission (SEC) and the NSE, the shares of the company shall be expunged from the daily official list of the Exchange. Furthermore, all dissenting shareholders would be settled and cease to be shareholders of 11.
The board of 11 said the delisting had taken into consideration the benefits of shareholders based on the terms and conditions of the proposed delisting.
A growing retail profile, improving customer experience and nimble technology are driving Polaris Bank Limited through its transitions. Despite the COVID-19 pandemic and management transition, the bank sustained positive growth trajectory for the second consecutive year. Deputy Group Business Editor, Taofik Salako, examines underlying strength and outlook of the bank.
Two broad indices are deposits-size and structure, and complaint resolution. Latest audit of Polaris Bank Limited underscored a major transition of the bank as one of the fastest-growing and customer-centric financial institutions. The audit, for the year ended December 31, 2020, with Pricewaterhouse Coopers as independent external auditors, showed stable earnings underpinned by robust growth in deposits and improved customer experience.
A breakdown of the complaints management during the period showed that 99 per cent of total complaints were resolved internally during the period, with a negligible 15 cases or 0.26 per cent of the unresolved complaints escalated to the Central Bank of Nigeria (CBN).
Growth driven by value
Polaris Bank’s total assets rose to N1.19 trillion in 2020 as against N1.16 trillion recorded in 2019. While the paid up share capital remained unchanged at N25 billion, total equity funds rose by 15 per cent from N86.89 billion in 2019 to N99.94 billion in 2020. In a year impacted by lockdowns and disruptions, customer deposits increased by N56.43 billion from N857.89 billion in 2019 to N914.32 billion in 2020. The increase in deposit was driven predominantly by low-cost deposits.The bank also increased its gross loan book, reflecting its modest and prudent risk strategy to grow its portfolio of quality loans for optimal interest-income generation.
POLARIS Bank Ag. MDCEO Innocent C. Ike
The report indicated a group pre-tax profit of N22.21 billion in 2020 as against N27.34 billion in 2019. Net profit meanwhile rose from N26.29 billion to N28.09 billion. Gross earnings stood at N129.31 billion in 2020 as against N150.85 billion in 2019.
Interest income had closed 2020 at N108.50 billion as against N133.61 billion in 2019. The bank however halved interest expenses from N45.81 billion in 2019 to N23.13 billion in 2020. This steadied net interest income to N85.37 billion in 2020 compared with N87.80 billion in 2019.
A modest increase in operating expenses, four per cent, compared with double-digit inflation that ran through the year, and forward-looking decision to increase impairment charge by a third, moderated the pre-tax bottom-line. Compared with average industry performance, especially within its group of second tier banks, the top-line and bottom-line performance of Polaris Bank showed resilience and stronger surefootedness than most of its peers. Polaris Bank’s return on asset (RoA) and return on equity (RoE) of 2.4 per cent and 29.4 per cent also compete favourably within the industry.
Analysts’ review
Analysts at RTC Advisory Services Limited said the performance of the bank, when viewed in the context of COVID-19 lockdowns and the change in leadership during the year, underscored the depth of managerial capability and general buy-in within the bank and the sustainability of its growth model.
Former managing director of the bank, Mr Tokunbo Abiru, had resigned during the year to contest senatorial election, and was elected as a Senator. The board appointed Mr. Innocent Eke, the Executive Director, Technology and Services, as Acting Chief Executive.
Ike, a best-graduating fellow of the Institute of Chartered Accountants of Nigeria (ICAN), continued the implementation of the bank’s strategic growth plan, steering the bank to what analysts regarded as impressive results, against the background of the global and national macroeconomic environment and industry headwinds.
Analysts at RTC Advisory said last year’s results showed further consolidation in the bank’s performance, with focus on profitability, growth and value creation. According to analysts, the 2020 results confirmed that “profitability and growth may now be the trend, rather than a one-off performance”.
“Polaris Bank has some strong strategic attributes-strong liquidity, good relationship management, a vast branch network and is enhancing its brand and product offering to differentiate the bank and deepen its franchise,” RTC Advisory stated.
Citing underlying indices, analysts stated that Polaris Bank’s two-year performance underscored the relevance of the bank’s new corporate strategy, good corporate governance and management depth and cohesion.
Commending the board and management for their commitment to business ethics by upholding sound risk management practices, analysts said Polaris Bank’s performance in 2020 reflected “commendable improvements in key performance indicators, assuring a strong positive outlook for earnings, margins, and profitability improvement in its cautious pursuit of loan growth, a sustained strategy for operational efficiency, funding cost optimisation, and efficient deposit mix”.
Pundits noted that the headroom for loan creation presents an opportunity for improved margins noting that the bank might be poised for reap the benefits of its investments in technology and human capital in the new business year, despite the challenging macroeconomic environment.
“Polaris Bank is now strong and stable, with a sound strategic focus and technology, revitalised brand, people, products and services and technology; and has been placed on a sound foundation for the future,” RTC Advisory concluded after exhaustive review.
Management outlook
Ike, a certified International Financial Reporting Standard (IFRS) banker and honourary senior member of the Chartered Institute of Bankers of Nigeria (CIBN), is also confident about the outlook of the bank. With strong support from Muhammad Ahmad-led Board, Ike said weathering 2020 signposted the significant milestones the bank had achieved since its inception in September 21, 2018 when it started its journey.
According to him, the bank has since grown to earn the confidence of the banking publics, offering quality banking services at the cutting-edge of technology.
“2020 was arguably the most challenging year that the world has faced in decades owing to the negative impact of COVID-19 on businesses and the economy. Yet, the current resuwlt demonstrates the importance of the deployment of appropriate strategies, and effectively validates our recent investment in technology solutions and digitisation of our products and processes,” Ike said.
He explained that the bank’s subsisting three-year corporate transformation plan has recently been reviewed in line with the changing operating environment and trend dynamism for sustainable value creation.
He pointed out that digital transformation remains one of the potent strategies to strengthen the bank’s balance sheet, control costs, and improve processes while providing clients with wider self-service offerings.
Polaris Bank’s strategic plan is centered around convenience, accessibility, customer satisfaction, and empowerment. The bank is creating a niche for creating opportunities for youths, small and medium enterprises, women entrepreneurs and other underserved groups. With a retail-led digital strategy, the bank seeks to be the bank of first choice for discerning customers, who value and trust its sustainable approach to business and the environment.
Deepening savings
Polaris Bank at the weekend rounded off a multi-million naira savings campaign aimed at fostering savings culture, in light with the national financial inclusion agenda and CBN-led industry agreement. A total of 188 Nigerians received N26 million during the bank’s ‘Save & Win’ nationwide campaign. Eight millionaires emerged from the six geo-political zones of the country while 180 other customers went home with a consolation sum of N100,000 each.
Six millionaires who emerged at the grand finale draw at the weekend included Williams Atinuke, a customer of Ikorodu Local Govt branch; Bello Amthe, a customer of Maiduguri branch; Sani Mohammed, a customer of Kura branch, Kano; Okoro Arua, a customer of Aba Factory Road branch, Abia State; Ndidi Ebagua, a customer of Benin Main branch, Edo State and Ogunbowale Isola, a customer of Sokenu Road branch, Abeokuta, Ogun State.
Two millionaires – Lucky Okunzuwa, a customer with the bank’s Akpakpava branch in Benin City, Edo State and Ikechukwu Obiefuna, a customer with the bank’s Okeke street branch, Awka, the Anambra State capital, had earlier emerged in the first and second draws of the promo, which took place on February 9 and March 9.
Supervised by the Federal Competition and Consumer Protection Commission (FCCPC); National Lottery Regulatory Commission (NLRC) and the Advertising Practitioners Council of Nigeria (APCON), the savings campaign and reward process were adjudged as transparent and credible, further bolstering the ethical image of the bank.
Ike, congratulating the winners, said the bank’s aim is to foster savings culture with a view to enhancing wealth creation and distribution.
“This will create the desired change in the savings culture of Nigerians as well as transform the investment climate for the economy,” Ike said.
With a highly experienced board and resourceful management, most pundits share the bank’s optimistic outlook. There are more reasons to support the positive outlook of the bank, despite transitional risks and the tough macroeconomic environment.
Access Bank Plc at the weekend assured its shareholders of improving 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 results of the bank for the period ended March 31, 2021, showing considerable growths across all key performance indicators.
Key extracts of the first quarter report for the period ended March 31, 2021 showed that Access Bank grew its top-line to N222.1 billion in first quarter 2021 as against N209.8 billion recorded in comparable period of 2020. Net interest income had risen by 30 per cent from N72.12 billion in first quarter 2020 to N93.96 billion in first quarter 2021. Non-interest income also inched up from N77.93 billion to N78.34 billion. Profit before tax rose by 30 per cent from N46.2 billion to N60.1 billion while profit after tax increased from N40.9 billion to N52.6 billion.
The balance sheet of the group remained strong with total assets rising from N8.68 trillion in December 2020 to NN9.05 trillion in March 2021. Net loans and advances totaled also improved from N3.61 trillion in December 2020 to N3.64 trillion in March 2021. The bank continued to improve its credit risk management with the proportion of non-performing loans dropping from 4.3 per cent in December 2020 to 4.0 per cent in March 2021.
The report further showed that the group retail banking business recorded steady growth with a 112 per cent increase in revenue to N57.5 billion in first quarter 20121 as against N27.1 billion in first quarter 2020. There were 941,631 new customers signed-on through the bank’s financial inclusion drive during the quarter. The improvement was also evidenced by the consistent and robust savings account growth to N1.36 trillion within the three-month period, which led to a significant reduction in cost of funds.
With the increased adoption of its digital channels and the growing customer base, the bank recorded a 29 per cent growth in USSD Transaction value and 40 per cent increase in mobile and internet banking transaction value.
Addressing shareholders at the meeting, Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe, said with the position of the bank in the financial services industry, it has been well-positioned to achieve significant growth in profitability and pay higher dividend over the years.
He outlined that the bank healthy capital adequacy ratio, a robust balance sheet and strong brand that would lead to a better performance in the years ahead.
According to him, Access Bank is best positioned to maximize the identified opportunities in Africa on the back of a growing customer base and the move to a cashless economy.
“We have identified Africa to be a vast pool of opportunities with over 370 million unbanked adults, $9.2 billion in remittances and cross border payments, 89 cities of over 1.3 billion inhabitants by 2025 and the overall African financial ecosystem. We also see opportunities coming from the new African Continental Free Trade Area (AfCFTA), as it is expected to expand intra-Africa trade to 53 per cent by 2022, eliminate tariff on qualifying trade and increase financial flows,” Wigwe said.
He added that Nigeria also presents several opportunities due to its large population, huge payments and remittance flows, and an emerging insurance market.
He pointed out that in order to capture emerging and existing opportunities, Access Bank will transit into a holding company structure that will enable it tap into the market opportunities that are available in the regulated banking and consumer lending market, electronic payments industry and retail insurance market.
According to him, through the restructuring, the bank will create new product revenues without taking incremental risks for the enterprise, ensure diversification of earnings, and support outside of Africa.
Wigwe explained that the series of mergers and acquisition the bank had undertaken since 2005 have all been value accretive, pointing out that the bank had commenced green field operations in Mozambique and completed the acquisition of Transnational Bank and Cavmont Bank in Kenya and Zambia to strengthen and increase their market presence.
“In early 2021, we received regulatory approval for our proposed acquisition of Grobank in South Africa to give us an inroad into the largest economic block in Africa and one of Africa’s biggest markets. Our acquisition of Grobank will help strengthen our foothold in the Southern African market- Africa’s largest economic hub and place us in a strong position to take advantage of Africa,” Wigwe said.
Reacting to the first quarter results, Wigwe said the strong results in a challenging macroeconomic and regulatory environment underscored the strong capacity of the bank’s business to generate sustainable earnings on the strength of its balance sheet, diverse revenue streams and dedicated people.
He noted that the bank continued to maintain robust capital and liquidity positions, well above regulatory levels with a Capital Adequacy Ratio of 22.2 per cent and a liquidity ratio of 48.3 per cent, which position the bank to support its customers across various markets and adequately execute its expansion strategy.
He reiterated that in furtherance of the bank’s vision to be the world’s most respected African bank and Africa’s payment gateway, the bank remains committed to a disciplined and thoughtful expansion strategy.
“Looking at the quarters ahead, we are poised for strong earnings growth fueled by our retail momentum, robust balance sheet, and operational efficiency,” Wigwe said.
Chairman, Access Bank Plc, Dr. Ajoritsedere Awosika, told shareholders at the meeting that in 2020, the bank made several investments to strengthen relationships with its customers.
According to her, by redefining its approach to customer service through streamlining of internal processes, and digitizing of about 30 per cent of customer journeys, the bank was able to improve on its customer experience while it was also able to manage its expenses in line with the target for 2020 despite double-digit inflation and overall cost of running the enlarged enterprise.
“As a result, we achieved a cost-to-income ratio (CIR) of 63.4 per cent from 66.1 per cent in 2019.We worked hard to recover and dispose of a significant portion of our non-performing assets. With a decline in the portfolio of overdue loans, our asset quality improved across our retail and wholesale segments. Our capital and liquidity ratios were also well above regulatory limits with our capital adequacy ratio remaining strong at 20.6 per cent,” Awosika said.
She said Access Bank would grow its businesses and continue to invest in information technology capacity until it becomes an incredibly strong bank for retail and wholesale customers around the world.
“As we continue to consolidate the gains from our decisive approach to pushing our retail franchise, we have identified several opportunities within Africa and beyond, for Access Bank to deepen its financial services offerings to banked customers as well as extend financial services to the unbanked,” Awosika said.
Shareholders at the meeting commended the board and management for their efficient running of the bank.
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.
United Capital Plc recorded a strong start in the new financial year with a 67 per cent growth in net profit within the first three months.
Interim report and accounts of United Capital for the three-month period ended March 31, 2021 showed that turnover rose by 63 per cent to N3.12 billion in 2021 while profit before tax jumped by 68 per cent to N1.97 billion. Earnings per share stood at N1.11.
Its Group Chief Executive Officer, Mr. Peter Ashade, said it was a pleasant performance that the finance and investment group commenced the new business year from a stable position with remarkable earnings growth and strong performance across key financial parameters.
According to him, the company has continued to navigate the tough economic terrain which at the moment, points to a recovery in the domestic economy amid other improving global macroeconomic developments.
He attributed the performance of the company to its well-articulated plans and solid management framework.
“This performance empowers us to adopt a positive outlook on the remaining part of the year 2021 as the operating environment improves supported by fiscal stimulus programmes, easing of restrictions on business operations, reopening of international and domestic travels, resumption of wholesale and retail trading activities as well as the rebound in oil prices,” Ashade said.
He said the group has continued to drive its strategy by pushing further its market diversification and cost-optimisation initiatives as well as implementing phased automation of its business processes while upholding commitment to ensuring a significant improvement in value delivery to stakeholders.
“Going into the remaining quarters, we remain diligently committed to delivering greater value to our stakeholders and providing best-in-class solutions to diverse client segments by constantly reviewing our strategy in the light of global and domestic developments even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery,” Ashade said.
According to him, United Capital remains a leader in the financial and investment services space, with a mission to provide bespoke and innovative value-added services to its clients. The group aims to transform the African continent by providing innovative and creative investment banking solutions to governments, companies and individuals.
United Capital is listed on the Nigerian Exchange (NGX) Limited and it is at the forefront of becoming the financial and investment role model across Africa by leveraging on innovation, technology, and specialist skills to exceed client expectations, while creating more value for all stakeholders.
Red Star Express Plc has launched an online platform, which enables customers to make custom duty payments for imported items.
The platform provides a more convenient option for customers to make payments as they look to clear their items at the ports.
Group Managing Director, Red Star Express Plc, Dr Sola Obabori, said the platform offers convenience and transparency.
“We understand that customers demand more in terms of transparency and accountability; especially when it concerns the payment of their custom duties for items brought into the country. Not only does this platform give them the convenience of paying online, customers will also be able to view the complete breakdown of these charges as determined by the agencies involved at the ports,” Obabori said.
He assured that Red Star Express would continue to strive to meet and exceed the expectations of its customers, noting that the electronic payment platform was just another step towards achieving excellent customer satisfaction.
Red Star Express is a Licensee of Federal Express (FedEx) Corporation, the world’s largest delivery solutions provider. It has over 150 offices in Nigeria; with international offices in Niger Republic, Burkina Faso and Benin Republic. Its network spans over 1,500 communities in Nigeria and 214 countries worldwide.
Red Star Express Plc is made up of four divisions and business units specializing in areas such as express delivery, logistics, freight, outsourcing services, supply chain management, e-commerce facilitation, printing and packaging, e-archiving, as well as agro trade logistics.
ANOH Gas Processing Company (AGPC) has reiterated its commitment to spending up to $10 million on capacity development initiatives in the oil and gas sector.
Its Managing Director, Okechukwu Mba said this on the sidelines of the kick off meeting and tour of the Centre for Skills Development and Training in Port Harcourt, Rivers State.
This is a project AGPC is partnering the Nigerian Content Development and Monitoring Board (NCDMB) to complete as part of its capacity development initiatives for the ANOH Gas Plant Project.
Mba identified technology and safety skills as critical to the oil and gas sector, saying that AGPC was delighted to be playing a key role in completing the Centre for Skills Development and Training.
He urged the contractor in charge to ensure that the project is completed on time and safely, adding that future graduates from the centre would be equipped with the right skills to make them relevant in the oil and gas sector.
According to him, AGPC has plans to execute human capacity development initiatives for the host communities of its ongoing ANOH gas plant project as it continues to foster stronger ties with critical stakeholders.
Executive Secretary, NCDMB, Engr Simbi Wabote, commended AGPC for being a partner of choice in the push to complete the Centre for Skills Development and Training.
The project commenced in 2011 with the motive to develop human and institutional capacities in the Nigerian oil and gas sector but was later stalled due to lack of funding. The centre comprises of a tower block, heavy duty and light scale training centre, library and auditorium.
Chemical and Allied Products (CAP) Plc braced the global adverse impact of COVID-19 pandemic on supply chain to post a net profit of N203.38 million in the first quarter of the year.
Interim report and accounts of CAP for the first quarter ended March 31, 2021 showed that the leading paints and coatings company recorded a turnover of N2.09 billion during the three-month period. Gross profit stood at N703 million while pre and post tax profits closed the period at N299.09 million and N203.38 million. Earnings per share stood at 29 kobo.
Managing Director, Chemical and Allied Products (CAP) Plc, Mr. David Wright said the performance of the company was affected by the major impact of the pandemic on global supply chain for chemicals.
According to him, in the first quarter of 2021, the company saw the biggest impact of the COVID-19 pandemic on its business as increased global demand for chemicals driven by the economic rebound in Asia and feedstock created challenges, forcing several suppliers to declare Force Majeure.
He noted that the resultant global shortage of raw materials significantly impacted product availability in the first quarter of the year.
He added that there was also a scarcity premium placed on all available raw materials which eroded gross margin across various product lines.
CAP had recorded turnover of N2.31 billion, gross profit of N1.17 billion and pre and post tax profits of N671.63 million and N456.71 million in first quarter of last year.
“We have taken steps to secure alternative raw material sources and are increasing inventory levels to mitigate against further disruptions. As such, we expect a strong recovery in the remaining quarters of the year. Our focus remains on creating shareholder value and we will continue to pursue attractive growth opportunities to achieve this,” Wright said.
The balance sheet indicated the company remained with strong cash position at N5.7 billion. A total of N1.4 billion has been earmarked for distribution to shareholders as cash dividends for the 2020 business year.
The report also showed improved efficiency with operating expenses/sales ratio dropping from 25.8 per cent in first quarter 2020 to 23.3 per cent in first quarter 2021. Earnings before interest and tax (EBIT) closed first quarter 2021 at N236 million, representing EBIT margin of 11.3 per cent. Pre-tax profit margin stood at 14.3 per cent while net profit margin was 9.7 per cent in first quarter of the year.
Meanwhile, inventory doubled to N2.0 billion in March 2021 from N967 million by December 2020 while trade and other receivables dropped by 58.1 per cent to N194 million in March 2021 as against N461 million by December 2020.
Further analysis indicated that the company continued to maintain positive ratios, underlining its liquidity and sustainability of its operations. Quick ratio-which measures a deeper level of liquidity and ability of the company to meet financing needs in tougher situation, stood at 1.2 times. Current ratio- which measures the coverage of current assets against current liabilities, stood at 1.6 times while total assets/equity ratio stood at 2.5 times.
CAP, a subsidiary of UAC of Nigeria (UACN) Plc, is a leading paints and coatings company in Nigeria with globally recognised brands such as Dulux and Caplux. CAP manufactures and sells premium and standard paints and coatings and is the sole technological licensee of Akzo Nobel Coatings International B.V. in Nigeria.
The company pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. It currently has 76 colour centres and colour shops across 31 states of the federation.
The National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has called for greater involvement of the private sector in the articulation and implementation of Nigeria’s foreign policy as calls for review of Nigeria’s foreign policy gains traction.
Director General, National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Amb Ayoola Olukanni, made the call in Abuja at a conference on review of Nigeria’s foreign policy. The conference was jointly convened by the House Committees on Foreign Affairs and Diaspora and the Ministry of Foreign Affairs.
Olukanni, who made his presentation from the perspective of the private sector, spoke on the topic “Economic Diplomacy and National Development: Effective Optimisation of Public-Private Partnerships.”
He averred that with the increasing role of the private sector in the Nigerian economy, the private sector should be regularly consulted in the articulation and implementation of the nation’s foreign policy.
Olukanni while saying that this should be done in cooperation with the Ministry of Foreign Affairs and Nigerian Missions abroad assured stakeholders at the Conference of the readiness of NACCIMA, as the premier national chambers of commerce with members across the country, to continue to work closely with the National Assembly in this regard.
He said this was to ensure that economic diplomacy and its new variant, the New Economic Diplomacy initiative (NEDi) as a component part of Nigeria’s foreign policy improves Foreign Direct Investment (FDI) flows to Nigeria and becomes more impactful on the nation’s economy.
In this regard, the NACCIMA boss called for significant improvement in security across the country to ensure confidence of foreign investors in the Nigerian economy and that Nigeria was indeed a worthy investment destination.
He similarly called for measures to ensure that remittances from the Nigerian Diaspora impact the Nigerian economy and at subnational level. He suggested that serious consideration should be given to closer interaction between Chambers across the country and groups and members of Nigerian Diaspora.
On the issue of the need for review of Nigeria’s foreign policy, the DG observed that time was overdue for an all stakeholders’ national conference to review Nigeria’s foreign policy. This, he said, was to ensure adoption of strategic options in view of dramatic changes in the new world order.
He said such changes were brought about by developments in Information and Communications Technology (ICT) and the global COVID-19 pandemic, which had consequences for the global economy and conduct of international relations.
Olukanni drew attention to the fact that the last time a similar Foreign Policy Review Conference took place was 35 years ago at the All Nigeria Foreign Policy Review Conference held at NIPSS in April 1986 at NIPSS Kuru.
He said there was now an urgent need for another strategic conference to review foreign policy to reposition Nigeria as major player in the global economy as the world continues to witness dramatic changes in the global financial system and economic landscape with emergence of new key actors shaping the global economy.
He also spoke on the African Continental Free Trade Area (AFCFTA) agreement as an area that deserves close attention as the nation mulls which way to go as it articulates a foreign policy posture and thrust with due attention to the economy.
He said any foreign policy thrust should include a robust engagement that will promote the economy of the nation in which the private sector is expected to play a leading role.
He pointed out that already, several Nigerian conglomerates have emerged as key players in some African countries and their products such as cement and other fast moving consumer goods dominate the market of those countries.
He also spoke of Nigerian banks and financial institutions that are already major players especially in several African countries. He drew attention to the thriving Nigeria’s digital private sector as reflected in the performance of several Nigerian Fintech companies.
He said all of these were indications of readiness of the Nigerian private sector to play key role in Nigeria’s economic diplomatic engagement.
Chair of the House Committee on Foreign Affairs, Rt Hon Yusuf Buba Yakub, expressed appreciation to stakeholders who participated in the meeting and especially to NACCIMA as a leading member of the Organised Private Sector (OPS) who’s input will be critical in any new foreign policy thrust especially in the area of Nigeria’s bilateral and multilateral economic relations.
Yakub assured that the various presentations at the Conference will be factored into next steps regarding review of the country’s foreign policy.
The Lagos Chamber of Commerce and Industry (LCCI) has expressed concerns that Nigeria faces serious fiscal sustainability risk over its national debt profile.
LCCI noted that the country’s debt-to-GDP ratio, which the government is using as a measure of debt sustainability, does not reflect underlying sustainability risks for the country.
President, Lagos Chamber of Commerce and Industry (LCCI), Mrs Toki Mabogunje said Nigeria’s largest contributors to GDP-agriculture and distributive trade have no significant contributions to revenue to support servicing of debt obligations.
According to her, while public debt stock accounted for some 22 per cent of nominal GDP as at end-December 2020, below the 56 per cent threshold recommended by the World Bank and the IMF for developing countries, official statistics points to Nigeria’s weak fiscal position with average debt costs to revenue ratio settling at 59.4 percent between 2015 and 2020.
“This portends serious medium-term fiscal sustainability risk given the country’s persistent revenue challenge. While we acknowledge the Federal Government’s drive in boosting revenue mobilization via the Strategic Revenue Growth Initiative (SRGI), it is even more important for state governments to be very innovative about revenue generation,” Mabogunje said.
She lamented that majority of Nigeria’s debts are not linked to assets or specific projects, pointing out that it is critical to create a national asset register, and have a coordinated mechanism in place for valuing and managing Nigerian assets.
Mabogunje berated government’s penchant for issuing new debt to redeem maturing ones, noting that it is not an optimal debt management strategy.
According to her it is critically important to replace existing debts with asset-linked securities to reduce debt cost, adding that this will ease the pressure of debt service on the budget.
On the impact of rising oil prices domestic energy prices, she reiterated the position of the chamber which states that total deregulation of downstream petroleum industry remains the most sustainable policy option for the sector.
“The philosophy should be for the government to put the legislative and commercial framework in the market and allow the market to operate itself.There is need to transition to market-driven environment through policy-backed legislative and commercial frameworks, thereby enabling the sustainability of the sector.
“Deregulation requires the creation of a competitive market environment and will guarantee the supply of products at commercial and market prices. It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires strong regulator to enable transparency and fair competition among players, and not to regulate prices. This is very crucial in attracting patient capital into the oil sector, promoting efficiency in the administration and utilisation of petroleum resources, and ensuring healthy competition among industry players. It is important to expeditiously accelerate the passage of the Petroleum Industry Bill (PIB) as the delay has continued to worsen uncertainties in the sector,” Mabogunje said.
According to her, the argument of whether to retain or eliminate petrol subsidy is understandably a sensitive discourse given the plight of the average Nigerian.
She advised that deregulation should take place concurrently with renewed commitment to stimulation of private investment in petroleum refinery, accelerated investment in mass transit transportation systems across the country.
She also called for accelerated program on the use of auto gas to reduce dependence on PMS and diesel; promote bullish investment in the power sector to reduce dependence on alternative sources of energy, especially PMS and Diesel electricity generating plants.
She further stated that it is evident that petroleum subsidy is unsustainable given government’s lean financial resources. According to her subsidy payment has for long constituted a huge burden on public finances as it is characterised by enormous corruption and product diversion. She canvassed the need to eliminate subsidy payment to free up resources for investment in critical sectors of the economy.
“Additionally, we note the Federal Executive Council has approved the sum of $1.5 billion for the rehabilitation of the Port-Harcourt Refinery, with plans to revamp Warri and Kaduna refineries. While we appreciate government’s resolve in revamping these facilities, we do not consider the approval as economically and fiscally expedient given the fact that billions of dollars have been expended on turnaround maintenance over the years with no tangible results.
“The Chamber believes the refineries should be concessioned to private investors with government taking a minority stake. Such funds should be invested in critical infrastructural projects that would further stimulate economic development in the country”. A shift from a crude oil exporting country to crude oil full value realization through deliberate investment in domestic refining and refined products distribution creates the opportunity to transform the dynamics of the downstream sector from a net importer to a net exporter of refined petroleum products,” Mabogunje said.
Polaris Bank Limited grew its balance sheet to N1.2 trillion and continued its growth trajectory with a pre-tax profit of N28.9 billion in 2020.
The audited report and accounts of the bank for the year ended December 31, 2020 showed that the bank continued to improve its performance scorecard in its second year of operations.
The report indicated that the bank has further consolidated its position and remained focused on the path of profitability, growth, and value creation.
The report indicated a four per cent growth in pre-tax profit to N28.9 billion in 2020 from N27.83 billion in 2019. Gross earnings stood at N129.31 billion in 2020. The performance, as shown by the financial statements, was driven by the combination of the significant reduction in interest expense due to the bank’s pursuit of low interest-bearing deposits as well as lowering impairment charges on loans and other financial assets.
The bank recorded return on asset (ROA) and return on equity (ROE) of 2.4 per cent and 29.4 per cent respectively which favourably placed the bank as a key player in the industry.
The bank’s total assets stood at N1.18 trillion, a three per cent growth on N1.14 trillion recorded in 2019. Shareholders’ funds grew by 17 per cent or N14 billion, largely attributable to internally generated profits. The bank increased its customer deposits by N56 billion from N857.9 billion in 2019 to N914.3 billion in 2020, predominantly low-cost deposits in spite of difficult economic and industry conditions. The bank increased its gross loan book by N38 billion reflecting the bank’s modest and prudent risk strategy to grow its portfolio of quality loans for optimal interest income generation.
Managing Director, Polaris Bank Limited, Mr. Innocent Ike, who took over in the course of the year from Mr. Tokunbo Abiru, who was elected a Senator of Federal Republic of Nigeria, noted that Polaris Bank has achieved significant milestones since its inception in September 21, 2018 when it started this journey.
According to him, the bank has since grown to earn the confidence of the banking publics, offering quality banking services at the cutting edge of technology.
“2020 was arguably the most challenging year that the world has faced in decades owing to the negative impact of COVID-19 on businesses and the economy. Yet, the current result demonstrates the importance of the deployment of appropriate strategies, and effectively validates our recent investment in technology solutions and digitization of our products and processes,” Ike said.
He explained that the bank’s subsisting three-year Corporate Transformation Plan has recently been reviewed in line with the changing operating environment and trend dynamism for sustainable value creation.
He pointed out that digital transformation remains one of the potent strategies to strengthen the bank’s balance sheet, control costs, and improve processes while providing clients with wider self-service offerings.
