From Nduka Chiejina, (Asst. Editor), Abuja

 

The Development Bank of Nigeria Plc (DBN) has advised Micro Small and Medium Enterprises (MSMEs)  to reinvent their business models.

He said this would enable  the MSMEs to be sustainable during the COVID-19 pandemic and “to enable them leverage growth opportunities for their businesses in the post COVID-19 era”.

He stated this during the DBN Webinar session, with the theme “Alternative financing options for sustainable growth post COVID-19 lockdown”.

Panelists include: immediate past President/Chief Executive Officer Africa Finance Corporation and CEO & Partner, South Bridge Group, Mr. Andrew Alli; CEO, Emerging Africa Capital, Mrs. Toyin Sanni; Head SME, FCMB, Mr. George Ogbonnaya; and MD/CEO, Urban Shelter, HajiyaSa’adiya Aliyu Aminu.

The session was moderated by Chief Economist, Development Bank of Nigeria, Prof. Joseph Nnanna.

The panelists lamented: “MSMEs are the hardest hit by the crisis, as they have limited access to capital and now have to depend on few customer base.”

They however, stressed that “only SMEs with innovative thinking and clear vision will be able to take advantage of the new normal.”

According to Andrew Alli “if you are an SME, the framework should be to survive the crisis period, have as much liquidity as you can and stem expenditure.”

He added that MSMEs “must stabilise the business by stabilising your cost and reconfiguring your operations.”

According to him, “a five-star hotel in Lagos has outsourced their laundry and restaurant. You can now order takeaway and pickup of your laundry. The crisis will end, and we will return to a period of growth.”

Read Also: SMEs seek govt’s assistance

 

Alli also noted that “a lot of things will likely change because of this pandemic. So, you (MSMEs) also need to prepare for that era. MSMEs have to be innovative, have a clear vision, be ahead of the curve to take advantage of the new normal.”

On alternative sources of funding for MSMEs, George Ogbonnaya stated that investors will be frugal in the post COVID-19 era and will only be attracted to businesses that align purpose with strategic direction.

He listed alternative sources of funding to include: Crowdfunding, Venture lending, Data driven lending platforms and Risk-Sharing Guarantees.

On her part, Toyin Sanni admonished small business owners to ‘COVID-Proof’ their business, as quality and branded digital presence will stand as distinguishing factors in the present and post COVID-19 era.

According to her, “quality and how you distinguish your brand from competitors will be very important. So, while saving as much as you can during this period, you should also invest in your brand and digitize your business.”

By ‘COVID-Proofing’ businesses, Toyin Sanni called on MSMEs to “redesign your business such that you are able to do an end-to-end i.e. client acquisition, provision of services, and monitoring and evaluation should involve digital models.”

As an advisory, Sa’adiya Aliyu Aminu said being the major drivers, MSMEs will be crucial to reviving the Nigerian economy just like the sector did after the 2015 recession.She called on the Federal Government to reaffirm the made in Nigeria policy to promote local production and patronage and curb capital flight after the pandemic.

By Taofik Salako, Deputy Group Business Editor

 

After three successive negative trading sessions, Nigerian equities yesterday regained their rally as investors renewed bargain-hunting for value stocks.

The All Share Index (ASI)- the value-based common index that tracks share prices at the Nigerian Stock Exchange (NSE) rose by 0.06 per cent to close at 23,709.44 points.  With this, gains so far this month increased to three per cent while year-to-date losses moderated to 11.7 per cent.

Aggregate market capitalisation of quoted equities rose by N7 billion to close at N12.356 trillion.

Sectoral performance was positive as all sector indices recorded gains. The Oil and Gas index led the gains by 2.7 per cent, Insurance index followed with a gain of 1.9 per cent, Banking index appreciated by 0.6 per cent, while Consumer Goods rose by 0.4 per cent. Meanwhile, the Industrial Goods  index was flat.

The uptrend was impacted by gains recorded in large and medium capitalised stocks, amongst which are; Mobil Nigeria, Total Nigeria, Unilever Nigeria, Stanbic IBTC Holdings and Guaranty Trust Bank.

Analysts at APT Securities and Funds Limited said that “We expect a push up in activity in next trading session to further strenghen yesterday’s positive stance as activity have dwindled consecutively into the mid-week.”

Anaylsts at Afrinvest Limited said that “The market presents opportunity for bargain hunting. However, we maintain a bearish outlook for the rest of the week.”

Market breadth closed positive, with 20 gainers versus eight losers. Unilever Nigeria recorded the highest price gain of 9.96 per cent, to close at N12.70, per share. Mobil Nigeria followed with a gain 9.94 per cent to close at N176.90, while May and Baker Nigeria increased by 9.70 per cent to close at N2.94, per share.

NPF Microfinance Bank went up by 9.63 per cent to close at N1.48, while AXA Mansard Insurance appreciated by 8.23 per cent  to close at N1.71,  per share. On the other hand, Union Diagnostic & Clinical Services and Jaiz Bank led the losers’ chart by 6.45 per cent each, to close at 29 kobo and 58 kobo, respectively, while Champion Breweries  followed with a decline of 6.17 per cent to close at 76 kobo, per share.

Aiico Insurance lost 4.12 per cent to close at 93 kobo, while Fidson Healthcare shed 2.85 per cent each to close at N2.39, per share.

The total volume of trades increased by 2.2 per cent to 159.24 million units, valued at N1.54 billion and exchanged in 3,573 deals. Transactions in the shares of FBN Holdings topped the activity chart with 50.772 million shares valued at N242.086 million. Access Bank followed with 10.850 million shares worth N68.609 million, while United Bank for Africa (UBA)  traded 9.789 million shares valued at N59.526 million.

Regency Alliance Insurance traded 7.531 million shares valued at N1.506 million, while Zenith Bank transacted 7.408 million shares worth N111.803 million.

 

 

 

 

 

By Collins Nweze

 

Standard Chartered Plc (StanChart) has explained how the Group will provide assistance for communities across its 59 markets via the $50 million Covid-19 global charitable fund. The fund will operate in two components.

Under its Phase One covering relief for communities by July, the Group will provide $25 million of funding for relief from the impact of Covid-19, with funding commitments made by July.

For the Phase Two, which aims at supporting economic recovery and protecting livelihoods, the Group will provide $25 million of funding to protect employment and educational opportunities, aiding the long-term recovery of communities impacted by Covid-19.

Funding will begin in August with a target to deliver projects by the end of next year. Part of the cash will be donated by Standard Chartered’s employees via a month-long giving campaign commencing on April 27.

 

By Collins Nweze

 

The Board of Directors of CRC Credit Bureau Limited has appointed Mrs. Olubunmi Lawson as an Independent Non- Executive Director. The appointment has been okayed by the Central Bank of Nigeria.

Mrs. Lawson is bringing to CRC Credit’s Board over 30 years of experience in senior executive positions spanning micro finance banking, consultancy and social enterprise sectors.

She is the pioneer Managing Director/Chief Executive Officer (CEO) of Edfin Microfinance Bank. She is a former interim MD/CEO of Fortis Microfinance Bank between March-August of 2018. From 2006-2017, she was the pioneer Managing Director/CEO of Accion Microfinance Bank Limited and the  Executive Director of FATE Foundation between 2001 and 2005.

A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Mrs. Lawson, holds a Master’s in Business Administration IESE International Graduate School of Management.

The Chairman, CRC Credit Bureau, Dr. Gregory Jobome, said the Board was glad to have  Mrs Lawson, adding that she was coming after the company had celebrated its 10th Aniversary.

“We are very excited to welcome Olubunmi to the Board and we have no doubt that she will put her vast wealth of experience at the disposal of the Board as she joins other highly experienced Directors to take the company on its next phase of growth,’’ he added.

 

By Collins Nweze

 

Rosabon Financial Services is committed to ensuring that businesses remain afloat throughout the Coronavirus period and providing loans, its Managing Director, Chukwuma Ochonogor has said.

Ochonogor, in a statement, said as part of the measures for this period is that eligible business owners and corporate organisations could access loans of up to N200 million using their vehicles as collateral.

This offer, he said, is available to both new and old clients, corporate organisations and business owners. Rosabon’s measures come amid the lockdown announced in Rivers State, which has seen many businesses and corporate organisations struggling to stay afloat and raise enough money to meet their demands.

According to Ochonogor, “As Nigerian businesses battle with the growing health and economic challenges of COVID-19, our priority is to ensure that essential service providers and other corporations have access to funds required to meet their rising business demands.

The lifeline offered by Rosabon is expected to help businesses improve cash flow and increase business efficiency, especially for essential service providers in various sectors.

“With our asset cash loans, corporate entities, and Small and Medium Enterprises (SMEs)  can make use of their vehicles as collateral to access loans up to 200 million within 48 hours at an affordable interest rate and a flexible repayment tenor of up to 24 months.

‘’Also, access to top-up is available from as early as the sixth repayment. The goal is to deploy our loan offerings and expertise needed by the business community to help navigate the burdens they are faced with while ensuring essential service providers have the funds they need to meet their rising demands.”

Ochonogor continued: “We have worked hand-in-hand with Entrepreneurs, corporate heads in Rivers State and other states in the federation to support the growth of their businesses for over two decades, recognising that they are essential to the continued success of our economy.

The hope is that our loan facilities will help corporate organisations and businesses free up funds tied down in their assets to support their business needs and provide the much-needed succor to weather this crisis.”

By Collins Nweze

 

FirstBank of Nigeria Limited has announced that its *894# Unstructured Supplementary Service Data (USSD), Quick Banking service has hit over 9.5 million customers.

This is in demonstration of its leadership in electronic banking.  The bank’s USSD banking service, launched in January 2015, is an easy to use, convenient, fast, user-friendly mobile banking channel through which various banking activities are carried out on a mobile phone – across the four major GSM network operators in the country – without the use of the internet.

Customers are able to enjoy a wide range of banking services using the Bank’s *894# USSD banking. These services include Data and Airtime top-up for self and third-party individuals,  Quick  balance Enquiry, Fund Transfers, BVN Enquiry, Bank Verification Number  linkage, mini-statement, account number enquiry    account opening, merchant payment and First Advance loan service. The FirstAdvance loan service enables salary earners take a loan up to 50 per cent of their monthly salary.

FirstBank’s Group Executive, e-Business & Retail Products, Chuma Ezirim, said: “At FirstBank, we are excited about the impact our innovative solutions are making in the Nigerian payment landscape.

Our *894# USSD banking has been a viable platform through which we take our banking services to the doorstep of our customers, right on the palm of their hands, without the limitation of an internet connection.

We remain committed to creating various avenues to enable Nigerians carry out various financial activities conveniently, safely and securely anytime, anywhere in Nigeria.”

Seplat Petroleum Development Company Plc has assured that its increasing revenue from gas, low oil price hedging and good cash standing will provide strong resilience to the current oil price volatility.

Speaking on the outlook for the business against the background of performance in the first quarter, Chief Executive Officer, Seplat Petroleum Development Company Plc , Mr. Austin Avuru said the company’s business was hedged against low oil prices while a significant proportion of its revenues now come from gas, which offers further protection from oil price volatility.

He noted that the company has low production costs and can remain profitable even at lower oil prices.

“We have significant cash resources available and will continue to manage our finances prudently in 2020, expecting now to invest $120 million of capital expenditure across the year, including two new gas wells and associated infrastructure,” Avuru said.

According to him, against the twin crises of significantly reduced oil demand and the price war, Seplat has continued to demonstrate its resilience because of its ongoing philosophy of prudent financial management, the careful mitigation of risk and a keen focus on managing factors of the business that are within our control.

He said the company has the benefit of long-term contracted gas revenues that are insulated from oil market volatility while it is achieving substantial cost reductions from its suppliers and managing its own costs even more carefully in this challenging period.

“We are in constant dialogue with partners on monies owed and are pleased to report that our cash flow remains robust and we have significant cash in reserve.

This, coupled with the majority of our debt repayment obligations extending beyond 2021, gives us confidence that we can continue to operate comfortably within the covenants on all lines of debt,” Avuru said.