The Nation Newspaper

Category: Equities

  • Afreximbank’s DRs start bullish on Mauritius Stock Exchange

    Afreximbank’s DRs start bullish on Mauritius Stock Exchange

    Following the successful close of the private placement with subscription far in excess of the $100 million minimum, Depositary Receipts (DRs) of the African Export-Import Bank (Afreximbank) have  started trading on the Stock Exchange of Mauritius (SEM), with the Bank topping the list of issuers in terms of capital raised prior to a listing.

    As per regulation, 5,000 DRs were listed at an initial price of $4.30 per DR. On the first trading day, the DRs closed, up 2.3 per cent, at $4.40 per DR and a market capitalisation of more than $170 million.

    The listing of the Depositary Receipts represents a big first for Africa’s equity capital markets and marks the achievement of a unique initiative on which Afreximbank had been working with SBM Group, a leading Bank in the financial sector in Mauritius, as lead arranger and depositary of the DRs.

    In a ceremony marking the first day of trading of the DRs, Afreximbank President, Dr. Benedict Oramah, noted that by investing in the DRs, investors would immediately diversify their risks across the 46 economies of the bank’s African member states, with diverse opportunities, vibrancy and risk profiles, thereby protecting themselves from country and currency risks.

  • Wema Bank plans capital reduction to write off retained losses

    Wema Bank plans capital reduction to write off retained losses

    Wema Bank’s Board of Directors at the weekend indicated that it has called an extraordinary general meeting of shareholders of the bank to consider a comprehensive capital reduction exercise that will lead to a write off of accrued legacy losses in the bank’s balance sheet.

    Under the capital reduction exercise, the bank will create a capital reduction account to charge off impaired assets and legacy losses while simultaneously moving the equivalent amount from its share premium account to effectively close the entries. The capital reduction will, however, have no impact on the shareholdings of the bank.

    Shareholders are expected to meet next week to consider and vote on the capital reduction scheme. If approved, the bank will subsequently apply to the Federal High Court for the approval of the scheme in line with extant laws.

    In a regulatory filing signed by the Company Secretary/Legal Adviser, Wema Bank Plc, Mr Oluwole Ajimisinmi, the comprehensive capital reduction represents an holistic approach that will enable the bank to position its balance sheet for improved efficiency.

    The bank noted that while it has emerged stronger and more profitable, negative earnings that arose from legacy losses prior to June 2009 have continued to undermine the bank’s ability to pay dividends while restricting the ability to raise new capital.

    “Though the bank has since returned to profitability in the last four years, the impaction of negative retained earnings and other impaired assets is that, the bank, by regulation, is precluded from providing necessary returns by way of dividends to shareholders and most importantly, restricts the ability and cost to raise new capital,” the bank said.

    Wema Bank’s capital reduction plan comes on the heels of plan by another quoted company, Prestige Assurance Plc,  to cancel about 1.6 billion ordinary shares out of its issued and fully paid up share capital under a share reconstruction that seeks to write off accumulated losses.

    Under the share reconstruction proposal, Prestige Assurance is seeking to reduce its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This will lead to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company, which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance stated that the essence of the capital reconstruction is to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction will reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

  • SEC, stakeholders review market situation

    SEC, stakeholders review market situation

    Regulators, operators and other stakeholders in the Nigerian capital market are scheduled to meet on November 9, to discuss key initiatives that could impact on the recovery and long-term growth of the market.

    The third meeting of the Capital Market Committee (CMC) this year, under the auspices of the Securities and Exchange Commission (SEC), is billed for the Federal Palace Hotel, Victoria Island, Lagos.

    At the meeting, the CMC is expected to consider reports from many of its technical committees and review the outlook for the Nigerian capital market in the light of emerging developments.

    The CMC, chaired by  SEC’s director-general, consists of chief executives of all registered capital market operators, including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants, among others.  Other members include chief executives of the Chartered Institute of Stockbrokers (CIS); Nigerian Stock Exchange (NSE), Abuja Securities and Commodity Exchange (ASCE) and Central Securities Clearing System (CSCS).

    The CMC also includes two members, each from observer groups, which include Asset Management Corporation of Nigeria (AMCON), Central Bank of Nigeria (CBN), Corporate Affairs Commission (CAC), Debt Management Office (DMO),  Federal Ministry of Finance, Federal Mortgage Bank of Nigeria (FMBN), Federal Inland Revenue Service (FIRS), Nigerian Deposit Insurance Corporation (NDIC), Investment and Securities Tribunal (IST), Nigerian Investment Promotion Council (NIPC), National Insurance Commission (Naicom), National Pension Commission (Pencom) and FSS2020.

    The CMC was established to serve as a medium for exchange of ideas among market stakeholders as well as for feedback on how to continuously improve the market activities and regulation. The CMC meets every quarter to deliberate on various issues affecting the market and other policy matters.

  • Equities gain N285b bargain-hunting

    Equities gain N285b bargain-hunting

    Nigerian equities netted more than N285 billion last week as investors increased bargain-hunting for value stocks ahead of impending inflow of the third quarter corporate earnings.

    All major indices at the Nigerian Stock Exchange (NSE) showed a largely positive market with sustained rally in the last three consecutive trading sessions.

    The All Share Index (ASI), the benchmark pricing index for the Nigerian stock market, closed the weekend with average-week-on-week gain of 2.49 per cent, equivalent to capital gain of N304 billion. However, the cancellation of shares by United Bank for Africa (UBA) reduced the net capital gain to N285 billion. A total volume of 2.080 billion ordinary shares of UBA were cancelled during the week, pursuant to a resolution passed at UBA’s annual general meeting in April 2016 to cancel the shares held by its Staff Share Investment Trust Scheme (SSITS). The total outstanding ordinary shares of UBA before the cancellation was 36.28 billion, while the total outstanding ordinary shares after the cancellation is 34.199 billion ordinary shares.

    The sustained rally pushed the average year-to-date return for Nigerian equities to 35.15 per cent at the weekend.

    The ASI rose from its week’s opening index of 35,439.98 points to close the week at 36,320.93 points. Aggregate market value of all quoted equities closed the weekend higher at N12.502 trillion as against the week’s opening value of N12.217 trillion.

    Nearly all sectoral indices also closed positive, setting the fourth quarter on a positive trajectory. The NSE 30 Index posted a return of 2.77 per cent. The NSE Banking Index appreciated by 3.17 per  cent. the NSE Consumer Goods Index rose by 1.42 per cent. The NSE Oil and Gas Index appreciated by 1.80 per cent while the NSE Consumer Goods Index led the rally with a week-on-week return of 6.15 per cent. However, the NSE Insurance Index depreciated by 1.21 per cent.

    Total turnover stood at 1.49 billion shares worth N15.11 billion in 14,549 deals last week, higher than a total of 1.33 billion shares valued at N14.09 billion traded in 14,703 deals in the previous week. The financial services sector led the activity chart with 1.29 billion shares valued at N10.12 billion traded in 8,334 deals; representing 86.3 per cent and 66.99 per cent to the total equity turnover volume and value respectively. The consumer goods sector staged a distant second on the activities chart with 89.259 million shares worth N3.154 billion in 2,760 deals. The conglomerates sector ranked third with a turnover of 49.36 million shares worth N113.74 million in 491 deals.

    Banks-traditionally most active stocks-again dominated the activities chart with the three most active stocks- FCMB Group Plc, Diamond Bank Plc and FBN Holdings Plc accounting for 659.042 million shares worth N1.312 billion in 1,933 deals, representing 44.14 per cent and 8.69 per cent of the total equity turnover volume and value respectively.

    A deal was also struck for a total of 2,000 units of Exchange Traded Products (ETPs) valued at N34,000 during the week as against a total of 274 units valued at N636,148 traded in18 deals in the previous week.

    In the sovereign debt segment, a total of 2,360 units of Federal Government Bonds valued at N2.03 million were traded this week in seven deals, compared with a total of 7,424 units valued at N6.69 million traded in 18 deals in the previous week.

  • Equities’ rally gathers momentum with N143b gain

    nigerian equities sustained their rally yesterday as increased bargain-hunting left investors with net capital gain of N143 billion within five hours of trading at the Nigerian Stock Exchange (NSE).

    With more than two gainers for every loser, benchmark indices at the Exchange showed average gain of 1.17 per cent, pushing the average year-to-date return to 33.11 per cent. The positive market situation was driven by widespread buy sentiments as investors sought to take positions ahead of expected inflow of third quarter corporate earnings.

    Aggregate market value of all quoted equities rose from its opening value of N12.171 trillion to close at N12.314 trillion. The All Share Index (ASI)-the value-based index that tracks share prices, appreciated to 35,773.98 points as against its opening index of 35,358.57 points.

    Most sectoral indices trended upward with the NSE Industrial Goods Ion the double with average gain of 2.8 per cent. The NSE Banking Index appreciated by 0.8 per cent while the NSE Consumers Goods Index inched up by 0.5 per cent. On the downside, the NSE Insurance Index and NSE Oil & Gas Index dropped by 0.4 per cent each.

    There were 31 gainers to 14 losers.  Dangote Cement-the most capitalised quoted company, led the gainers with a gain of N5 to close at N215. Nestle Nigeria followed with a gain of N2.99 to close at N1,223.01. Presco rose by N2.95 to close at N61.95. Lafarge Africa appreciated by N2.08 to close at N54.10. Nigerian Breweries rose by N2 to close at N163.60 while Total Nigeria added N1.50 to close at N241 per share.

    On the negative side, Mobil Oil Nigeria led the losers with a drop of N8.28 to close N161.72. MRS Oil and Gas dropped by N1.51 to close at N28.88. PZ Cussons Nigeria declined by 68 kobo to close at N23.55. Cadbury Nigeria dipped by 54 kobo to close at N10.26. Ecobank Transnational Incorporated lost 35 kobo to close at N16.75. Unilever Nigeria dropped by 18 kobo to close at N43.43 while Africa Prudential dipped by 10 kobo to close at N3.31 per share.

    The momentum of activities also improved with exchange of 317.4 million shares valued at N2.9 billion. Skye Bank was the most active stock with 94.32 million shares worth N48.14 million. United Bank for Africa followed with 35.75 million shares valued N321.39 million while Transnational Corporation of Nigeria placed third with 26.05 million shares worth N34.93 million.

    “Performance in the near term will remain driven by investor expectation of third quarter 2017 earnings results. Accordingly, we expect the market to close the week in the green,” analysts at Afrinvest Securities stated.

  • ‘Nigeria needs viable debt market for sustainable growth’

    nigeria needs to encourage the development of a robust and viable debt capital market in order to secure a sustainable domestic pool of capital that could support national growth and development.

    This was the consensus of stakeholders at the 2017 Nigerian Debt Capital Markets Conference & Awards organised by the FMDQ OTC Securities Exchange in Lagos. The event, which brought together subject matter experts with varying focuses and interests in the Nigerian and global financial markets space, provided a platform to deliberate on strategies and other pre-requisites needed to position the Nigerian debt capital markets to support sustainable economic growth and development.

    Vice President, Federal Republic of Nigeria, Professor Yemi Osinbajo, who was represented by the Director General, Debt Management Office, Ms. Pat Oniha said the government knows the importance of the debt capital market to its overall economic recovery and growth plan.

    He said the government would continue to support the development of the Nigerian capital market.

    He urged all stakeholders to support the Federal Government’s diversification efforts by showing greater commitment from the private sector to complement the government’s efforts especially in the area of infrastructure development.

    Minister of Finance, Mrs. Kemi Adeosun, who gave a special address, recognised the opportunities inherent in the debt capital market and assured the participants that the Federal Government was taking bold steps towards putting the necessary reforms to support private sector-led growth, even as the country exits recession.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, underscored the growing relevance of the debt capital market to the much-desired turnaround of the Nigerian economy.

    Gwarzo, who was represented by Director, Investment Management, SEC, Ms Mary Uduk, provided an overview of the recent milestones achieved in the Nigerian debt capital market.

    He pointed out that the Nigerian Economic Recovery and Growth Plan underscores the role of the private sector in leading the growth that Nigeria desires.

    “To sustainably develop Nigeria, reliance must be shifted from ‘owners’ capital’ and short-term funding from commercial banks to long-term capital from the debt capital market,” Gwarzo said.

    Vice President and Treasurer, International Finance Corporation (IFC), Mr. Jingdong Hua, noted that for Africa to meet and maximise its potential in the global financial markets space, Nigeria must be one of its greatest engines.

    He called on the government to create an enabling environment to support the debt capital market and also promote financial markets education for capacity building of market participants, and the general public.

  • Equities open Q4 with N46b loss

    Nigerian equities reopened yesterday with a tinge of profit-taking as considerable selloff in many large-cap stocks depressed the overall market position to a net loss of N46 billion. After rallying a net capital gain of N756 billion in the third quarter, the fourth quarter started with portfolio rebalancing aimed at monetizing capital gains and realigned portfolio composition.

    The main value indices at the Nigerian Stock Exchange (NSE) showed a largely negative market situation, with average day-on-day decline of 0.38 per cent, equivalent to net capital depreciation of N46 billion. This depressed the average year-to-date return to 31.37 per cent.

    The All Share Index (ASI)-the value-based index that tracks share prices at the Exchange, declined to 35,306.09 points as against its opening index of 35,439.98 points. Aggregate market value of all quoted equities also dropped from its opening value of N12.217 trillion to close at N12.171 trillion.

    The negative market situation was due to preponderance of losers to gainers, especially within the highly capitalised stocks. There were 22 losers to 18 gainers while almost three-quarters of quoted companies were unchanged.

    Nestle Nigeria-the highest-priced stock at the Exchange, led the losers with a loss of N5.11 to close at N1,215. Nigerian Breweries-the second most capitalised stock, followed with a loss of N3 to close at N162. Dangote Cement-the most capitalised quoted company, trailed with a drop of N2.99 to close at N210. Forte Oil lost N1.80 to close at N48.10. PZ Cussons Nigeria declined by N1.27 to close at N24.23. GlaxoSmithKline Consumer Nigeria dropped by N1 to close at N21. Cadbury Nigeria dipped by 53 kobo to close at N10.46 while Ecobank Transnational Incorporated lost 30 kobo to close at N17.20 per share.

    The momentum of activities however improved with above-average turnover. Investors traded 634.32 million shares valued at N5.79 billion in 3,850 deals. Banks dominated the activities chart. FCMB Group was the most active stock with a turnover of 370.40 million shares worth N378 million. FBN Holdings placed second with 33.99 million shares valued at N193.59 million while Guaranty Trust Bank ranked third with 33.48 million shares worth N1.34 billion.

    On the positive side, Total Nigeria led the gainers with a gain of N4 to close at N235. Guinness Nigeria followed with addition of N3.49 to close at N98.50. Lafarge Africa rose by N1.34 to close at N52.02. Zenith Bank added 61 kobo to close at N24.01. Stanbic IBTC Holdings chalked up 51 kobo to close at N40.01 while Dangote Sugar Refinery and Union Bank of Nigeria rose by 23 kobo each to close at N13.93 and N5.99 respectively.

  • Nigeria Breweries celebrates independence with consumers

    Nigerian Breweries, producer of the “33” Export has given consumers in Port Harcourt and Uyo another reason to create new memories as the brand thrilled residents of the cities with its Experience Parties.

    The Friendship Experience Party which is Nigeria’s biggest friendship platform to engage consumers has been held in major cities across the country. Over the past few months, thousands of consumers and lovers of the brand have been hosted in popular clubs and bars to the best of music, games and comedy experiences.

    Following the recent friendship parties in Onitsha and Lagos, friends in Port Harcourt and Uyo came out in numbers to enjoy “33” Export while celebrating Nigeria’s Independence Day.

    Speaking during the event in Port-Harcourt, Portfolio Manager – Mainstream, Lager and Stout Brands, Nigerian Breweries Plc, Emmanuel Agu asserted that the parties show the bond and unity in friendship among Nigerians.

    “No matter where we are, the essence of friendship is always strengthened by the recognition that the bond people share needs to be acknowledged and celebrated. Nigeria is fortunate in its diversities, and a lot of our consumers are here today to celebrate one another and to recognise the indispensable quality of friendship and unforgettable experiences,” Agu said.

    With interesting activities at the event, consumers in Port-Harcourt and Uyo won lots of amazing gifts such as generators, standing fans, refrigerators, branded T-shirts – as friends shared and made bids with the “33” Export currency.

  • Investors earn N2.97tr in nine months

    •Got N765b in three months

    Equities’ investors at the stock market netted N765 billion in the three-month period that ended September 30, pushing the year-to-date gain for the first nine months of the year to N2.97 trillion.

    Despite a recurring profit-taking trend that led to tepid performance in September, quoted equities drew on strong rallies in the early months of the third quarter to close the period positive.

    Benchmark indices and sectoral trackers at the Nigerian Stock Exchange (NSE) indicated that Nigerian equities continued to outperform other classes of assets as historically low valuations, improved macroeconomic outlook and foreign exchange management sustained another quarter-on-quarter rally to push average year-to-date return by the nine-month period ended September 30, 2017 at 31.87 per cent.

    While the profit-taking transactions had depressed most equities in the last month, most quoted equities still closed the third quarter at their four-year best performances with double-digit returns, ahead of inflation and benchmark interest rate. The average investors have seen their portfolios rising by almost a third while several investors are considerably higher than the average benchmark.

    The nine-month average year-to-date return represents 15.87 percentage points and 17.87 percentage points above inflation rate and the Monetary Policy Rate (MPR)-interest rate benchmark, respectively. Adjusted for inflation and interest rate, the nominal real return stands positive at 1.87 per cent. Nigeria’s inflation rate stands at 16.0 per cent while the MPR is retained at 14 per cent.

    Aggregate market value of all quoted equities on the NSE closed the third quarter at N12.217 trillion as against 2017’s opening value of N9.247 trillion, representing net capital gain of N2.97 trillion or 32.1 per cent. The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, crossed nine levels to close September at 35,439.98 points compared with its year’s opening index of 26,874.62 points, representing an increase of 31.87 per cent.

    Investors in the banking sector continued to sustain their lead on the returns’ table with the NSE Banking Index indicating average year-to-date return of 60.46 per cent for the nine-month period. The NSE 30 Index, which tracks the 30 most capitalised companies, posted above average return of 35.75 per cent. The NSE Consumer Goods Index ended the period with 29.35 per cent. The NSE Industrial Goods Index trailed with 24.37 per cent while the NSE Insurance Index posted a return of 10.64 per cent. However, the NSE Oil and Gas Index recorded a negative return of -10.19 per cent as oil and gas stocks continued on downtrend.

    The NSE Pension Index, which tracks stocks specially screened in line with pension investment guidelines, showed that pensioners might be in for wider dining tables with above-average return of 50.81 per cent. The NSE Lotus Islamic Index-which tracks stocks that comply with the Islamic law, recorded appreciable return of 21.01 per cent, underlining the attractiveness of ethical investment in the midst of the rally. The NSE Lotus Islamic Index excludes interest-based banks, breweries, gambling and overleveraged companies among others.

    Quarter-on-quarter analysis showed that the ASI recorded average return of 7.01 per cent, suppressing a downtrend that saw a decline of 0.18 per cent in September. The overall market performance was driven by considerable rally in the consumer goods sector. The NSE Consumer Goods Index doubled the average performance with a return of 15.89 per cent. The NSE Banking Index followed with a gain of 10.6 per cent. The NSE 30 Index recorded three-month return of 7.84 per cent. The NSE Industrial Goods Index rose by 2.69 per cent while the NSE Insurance Index appreciated by 1.36 per cent. The NSE Pension Index and NSE Lotus Islamic Index rose by 5.52 per cent and 8.87 per cent respectively. The NSE Oil and Gas Index was the contrarian index, with a negative return of -13.1 per cent.

    On a month-on-month basis, September was largely dominated by sell pressure as investors sought to monetise capital gains and locked in values into other equities and asset classes. The ASI slipped by 0.18 per cent during the month, driven largely by declines in the oil and gas, industrial goods and consumer goods sectors. The NSE Oil and Gas Index slumped by 6.05 per cent. The NSE Industrial Goods Index dropped by 3.30 per cent. The NSE Consumer Goods Index depreciated by 2.65 per cent while the NSE 30 Index dipped by 0.95 per cent. However, the NSE Insurance Index indicated resurgence with positive return of 1.59 per cent while the NSE Banking Index inched up by 0.11 per cent.

    The third quarter performance of the equities market further consolidated the upswing that dominated the first half of the equities market. Investors had netted more than N2.2 trillion in capital gains in the first half of this year with most quoted equities closing the first half at their four-year best performances. The six-month average year-to-date return stood at 23.23 per cent, equivalent to net capital gain of N2.2 trillion.

    Aggregate market value of all quoted equities closed the first half at N11.452 trillion while the ASI closed at 33,117.48 points.

    The sustained rebound in the equities market so far this year represents a major recovery for hard-pressed Nigerian investors, who had lost N3.98 trillion in the past three years. The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the general expectation that political transition and new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion. Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.

    Meanwhile, total turnover at the NSE last week stood at 1.33 billion shares worth N14.09 billion in 14,703 deals as against a total of 1.1 billion shares valued at N17.86 billion traded in 16,070 deals in the previous week. The financial services sector remained atop activity chart with 1.06 billion shares valued at N7.34 billion in 8,202 deals; representing 80 per cent and 52.1 per cent of the total equity turnover volume and value respectively. The industrial goods sector staged a distant second with 91.35 million shares worth N2.78 billion in 933 deals. The consumer goods sector placed third with a turnover of 70.19 million shares worth N3.4 billion in 2,719 deals.

    The three most active stocks were Continental Reinsurance Plc, Sterling Bank Plc and Access Bank Plc, which jointly accounted for 412.84 million shares worth N1.49 billion in 817 deals, representing 31.14 per cent and 10.55 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 274 units of Exchange Traded Products (ETPs) valued at N636,148 in 18 deals compared with a total of 58 units valued at N90,475 traded in five deals in the previous week.

    A total of 7,424 units of Federal Government bonds valued at N6.689 million were also traded last week in 18 deals compared with a total of 178 units valued at N163,407 traded in two deals two weeks ago.

    Market analysts remained optimistic on the performance of the equities market as many companies indicated their third quarter earnings report might be ready this month.

    “In the coming week, we believe market performance will be majorly driven by investors’ expectation of third quarter 2017 report card. Nonetheless, we advise investors to stay bullish on stocks with sound fundamentals,” Afrinvest Securities stated.

    Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, said the recovery at the stock market was a response to positive changes in the polity noting that the stock market performance usually aligns with macroeconomic outlook.

    According to him, the stock market had remained depressed in the first quarter under poor liquidity amidst uncertain and unrealistic foreign exchange management. But the market turned round in the second quarter with the changes in the foreign exchange management and improvement in macroeconomic coordination.

    Chukwu said the market recovery was boosted by the introduction of the Investors and Exporters’ foreign exchange window and the narrowing of exchange rates between official and parallel rates due to policy stimulation by the Central Bank of Nigeria (CBN).

  • Skye Bank harps on early savings culture

    Skye Bank harps on early savings culture

    Skye Bank Plc has underscored the importance of inculcating financial literacy and savings culture in children to nurture life-long culture of prudence and diligence in them.

    To foster financial literacy and savings culture, Skye Bank last week presented awards to winners of its nationwide Skye Rainbow Essay Competition. The competition, which kicked off last April across the six geopolitical zones of the country saw 21 pupils emerging winners across the nation. The winners were presented with state-of-the-art educational tablets.

    Speaking during the presentation in Lagos, the bank’s Executive Director, Technology & Services, Mr. Innocent Ike, said the competition demonstrated the commitment of the bank to the development of financial literacy among the Nigerian youth and the education sector generally.

    He commended the pupils for believing in Skye Bank by taking up the challenge of going through the essay process.

    “As a bank, we believe in promoting excellence and we are happy that you have taken the challenge of going through the rigours of the competition by applying your thinking and expressing yourself, as best as you could,” Ike said.

    According to him, Skye Bank is committed to the support of efforts aimed at improving the welfare of children; a commitment that is expressed in the various financial solutions and inclusion initiatives undertaken by the bank, including the Skye Rainbow savings account, which promotes good savings culture among children.

    He congratulated the winners-Ajayi Samuel, Chiemeta Pascal and Chukwuebuka Michael and commended them for demonstrating unusual strength and brilliance. He also thanked their parents and teachers for standing by them till they emerged winners in the competition.

    He urged the winners and their colleagues who accompanied them to the award presentation to start saving early as this will show they have plans for their future.

    “As one of the largest retail banks in the country, we encourage savings,” Ike said.

    On what motivated the competition, Ike said the competition’s overall goal was to develop in the Nigerian child, creativity, good presentation skills and proper use of English, as a medium of communication.

    He added that the competition intended to inculcate in the Nigerian child, a culture of appreciation for the positive parental influence over their lives in shaping their destiny.

    “I’m very happy. It makes me feel good and it makes my parents proud and this has begun a good race in my life. My family and my friends will be happy with me,” Samuel Ajayi, a student of Caleb International College, Magodo and the overall winner of the competition said.

    Mrs Ajayi Ololade, mother of Samuel Ajayi, the star prize winner, said she paid attention to savings and financial literacy in nurturing her children.

    “All my children have Rainbow account. I opened the account for Samuel when he was three years old. Now he is 12 years old. I set up a standing order instruction which has been making it easy for me to have funds whenever I need money for his education. The bank’s new digital banking solution; SkyeXperience, makes it even easier to set-up standing instructions,” Ololade said.