The Board of Directors of Chams Plc has made three major appointments to strengthen and expand the group’s business solutions and offerings to larger markets.

They are Mayowa Olaniyan, a chartered accountant, who was appointed as Managing Director of Chamsmobile.

Kayode Akomolafe became the Executive Director (ED) for Chamsmobile and Patricia Duru, who resumed as Group Chief financial Officer for Chams Plc.

Olaniyan has over 27 years’ experience in finance, audit, automobile, and technology.

Olaniyan  was the Chief Strategist and Financial Officer and later ED (Finance, Strategy and Services). She also drove the financial and business strategy that shot the Chams Group back to profitability.

A Fellow of the Institute of Chartered Accountants of Nigeria (FCA) and Associate of Chartered Certified Accountants (ACCA), Olaniyan holds an MBA from Edinburgh Business School, Heriot-Watt University, United Kingdom (UK).

Akomolafe holds a Bachelor of Technology from Federal University of Technology, Akure, a Masters in Information System Technology from University of Liverpool, UK as well as Executive MBA from Lagos Business School.

He is an Alumni of Nanyang Business School, Singapore. He is a certified Scrum Master, a Professional Member of British Project Professional Society, Scrum Alliance USA and Agile Practitioners Association of Nigeria.

Duru resumed as the new Group Chief Financial Officer of Chams Plc with effect from March 8, 2021. Prior to joining Chams, she served as Chief Financial Officer of Interconnect Clearinghouse Nigeria Limited where she played a pivotal role in the financial growth of the business as well as significantly improving shareholder value over the last five years.

The board expected Duru to provide support in driving the group’s strategic vision and harnessing greater wealth-building opportunities for shareholders. She joins the group with invaluable telecommunications, risk management, and financial Services experience.

She is a Fellow of the Institute of Chartered Accountants of Nigeria, an Associate of the Chartered Global Management Accountants & Chartered Management Accountants (UK) amongst others.

Meristem has launched a wealth creation and management campaign as part of its efforts to encourage investors to partner with experienced and trusted partners who understand the investment terrain and can help them grow and manage their wealth for posterity.

The campaign, entitled: “Generations“, harps on the message of growth, wealth preservation and wealth transfer.

As with its previous campaign, the new television commercial showcases Art Doyen, Mama Nike Okundaye Davies but with a bonus this time- Mama’s very own daughter, Allyson- Aina Davies.

Still anchored on the brand’s dynamic campaign promise of “Let’s take you farther” the brand hopes to adequately pass the message of ‘your wealth should not end with just you alone, let it transcend generations after you’.

According to the company, the choice of Nike Okundaye-Davies and Allyson-Aina Davies seeks to solidify the importance of not just growing your wealth, but also that of wealth preservation and wealth transfer. The importance of making the right investment choices that will outlive you such that generations after you will enjoy and benefit from.

Notably, Aina, who is the Managing Director of Nike Arts Gallery, is following boldly in Mama’s footsteps with her love for the arts and adire which led her to write a book on that same subject matter ‘Storytelling through adire’.

As the global environment continues to struggle from the effects of the COVID-19 pandemic, it has become imperative for investors to allocate their resources smartly and safeguard their investments for now and for generations with organisations who possess the knowledge and investment domain expertise to build lasting wealth.

Group Managing Director, Meristem Securities Limited, Oluwole Abegunde, said the company hss operated a client-oriented business which has helped it to create tailor-made financial solutions for its clients, some of which include trusteeship services such as estate planning and commercial trust, retirement planning, mutual funds, foreign denominated products like Meristem Dollar Investment Portfolio, Real Estate Advantage Portfolio and Probate Management Service, among others.

“We will continue to be proactive with product innovation so that our clients can be assured that we are not just growing their wealth for now, we are growing it for generations,” Abegunde said.

Adefemi Taiwo, Head Brand Management, Meristem, highlighted that it’s the dream of every parent to leave a good legacy for their children so it’s not just enough to invest, but one  needs to invest smartly- with a partner who cares about the longevity of one’s investment and wealth.

“ With this campaign, we hope to reaffirm our commitment to our existing clients and encourage prospective clients to come on board. We won’t only grow your wealth; we will make sure it stands the test of time and grow it for generations, “ Taiwo said.

Taiwo said the new campaign would, no doubt, further strengthen Meristem’s dominance in the industry in which it operates.

Meristem, a capital market conglomerate and diversified financial services provider offers stockbroking, wealth management, asset management, trustee services and financial advisory. Over the past 16 years, Meristem has been consistent in value creation and innovation within the capital market space.  Nigerian Exchange (NGX) Limited awarded Meristem as the best digital broker of the year. In 2018 also, Meristem became the first Nigerian asset management firm to attain compliance with the Global Investment Performance Standards (GIPS) by the CFA Institute. In 2017, Meristem handled the single largest trade in the history of the NGX.

By Okwy Iroegbu­Chikezie

Worried about the absence of the fun and fanfare that characterize Children’s Day celebrations in many Lagos State schools on May 27 of every year, Sterling Homes is perfecting plans to revive that tradition in a local Council Development Authority (LCDA) of the state.

CEO Sterling Homes, Kunle Adeyemi, who disclosed this to The Nation, explained that they were taking up the venture as part of their corporate social responsibility (CSR) which prioritizes education.

“We are taking off this year and we are starting with 27 primary Schools in Odi-Olowo/Ojuwoye LCDA of the state.  We want to revive this tradition by giving back joy and value to the children,” Adeyemi said.

“It is our  plan to celebrate this year’s Children’s Day in grand style, involving all 27 primary schools in the community,” he said, recalling how the Day in his time was a day of celebration for children as they looked forward to the March Past and other fun-filled activities.

During a visit to the local council to communicate their intentions to Razaq Olusola Ajala, the LCDA chairman, Adeyemi disclosed that he wanted to recreate something like that and even better this year. “We’re definitely excited for what’s about to unfold,” he enthused.

The chairman, who was also excited about the whole idea, gave it his blessing, thanking the CEO and his team for choosing his community for that unquantifiable gesture.

The company’s decision to organise the Children’s Day celebration is coming on the heels of unveiling  its new brand identity which, according to the CEO, is one of the many steps to their next level of excellence-driven service and product delivery.

As a real estate investment and development firm, Sterling Homes is committed to helping individuals, corporate organizations and Nigerians in Diaspora to become landlords with its product offerings.

The company is worried about many things that are wrong in the Nigerian housing sector. The slow pace of housing delivery in Nigeria in the face of a staggering housing deficit is a major source of worry, especially with the Federal Housing Authority (FHA) which, in its 30 years of existence, has not built up to 50,000 housing units across the country.

It is also another source of worry for the CEO particularly that over 87 percent of Nigeria’s household population still lives in rented apartments which, according to him, tells how dire the housing situation in the country is.

As a response, the CEO said, “we are rebranding because we want to get into massive housing delivery to help reduce this deficit. We are going to do this in each of the six geo-political zones of the country. We are starting from Lagos where we will be breaking ground for 50 housing units. We have just 90 days to deliver that project.”

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.

By Taofik Salako, Deputy Group Business Editor

The Federal Government is scheduled to raise some N150 billion through the issuance of new medium and long-term bonds at the primary segment of the debt market today.

The primary market auction (PMA) involves reopening of a medium-term bond and two long-term bonds with offer size of N50 billion each. The bonds being reopened include the 16.2884 per cent FGN March 2027 bond, 12.50 per cent FGN March 2035 bond and 9.80 per cent FGN July 2045 bond.

The 16.2884 per cent FGN March 2027 bond has five years and 11 months to maturity while the 12.50 per cent FGN March 2035 bond and 9.80 per cent FGN July 2045 bond have 13 years and 11 months and 24 years and three months.

The previous stop rates for the three bonds were 10.5 per cent, 11.5 per cent and 12.00 per cent.

Analysts at Afrinvest Securities said they expected reduced activity in the FGN bonds at the secondary market as investors focus on the primary market auction.

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“Therefore, we advise investors to take advantage of maturities that advanced along the curve,” Afrinvest Securities stated.

Last week, secondary market trading on the FGN bonds had continued on a bearish note as investors exited positions following the release of March, last year inflation rate at 18.17 per cent.

Data provided by Afrinvest Securities showed that the slowdown in demand pushed average yield across the curve by 108 basis points (bps) to 11.45 per cent by the weekend as against 10.37 per cent penultimate weekend.

The short-dated maturities such as 27-Apr-23, 14-Mar-24, and 23-Mar-25 recorded the most sell-offs, advancing 333 bps, 272 bps and 202 bps respectively during the week.

The fixed-income market has taken a bearish note in recent period as investors slowed down from the previous rush to rebuild fixed-income portfolios.

Analysts at Afrinvest Securities noted that Central Bank of Nigeria’s (CBN) open market operation (OMO) maturities worth N10 billion, which will hit the system this week, will continue to put the funding levels under pressure.

“Thus, we advise investors to continue to position in relatively attractive bills across the curve while also looking out for possible corporate offerings,” Afrinvest Securities stated.

The Nigerian Treasury Bills (NTBs) had last week traded negative at the secondary market following pressured liquidity levels and primary auctions.

Average yields across the curve dipped slightly by five basis points last week to settle at 4.35 per cent from 4.40 per cent recorded in the previous week. The 26-Aug-21 and 9-Sep-21 bills witnessed the most buying interest from investors, declining 37 basis points and 33 basis points.

At its primary market auction last Wednesday, CBN total offer of N69.6 billion across the 91-, 182- and 364-Day tenors was met with significant demand, recording a total subscription ratio of N247.4 billion. Also, stop rates were maintained at the short – and medium-term offers while the long-term offer increased to nine per cent as against eight per cent at the previous auction.

By Taofik Salako, Deputy Group Business Editor

About 163 million ordinary shares of leading companies worth N5.15 billion have been placed on securities lending platform for borrowing by investors.

A review of the securities lending status at the Nigerian Stock Exchange (NSE) on Tuesday showed that the shares of leading companies such as Guaranty Trust Bank (GTBank) Plc, Zenith Bank International Plc, MTN Nigeria Plc and Dangote Sugar Refinery (DSR) Plc were deposited by investors and available for borrowing by any  investor.

GTB is Nigeria’s largest financial institution by market capitalisation. Zenith Bank is a leading tier 1 bank and second most capitalised bank. MTN Nigeria is the sectoral leader for the telecoms sector while DSR, a member of Aliko Dangote’s Dangote Group, is the largest and only quoted sugar company.

Securities lending is the process of lending and borrowing of shares and bonds by investors for a period  under an agreed arrangement. Traditionally, the borrower will provide acceptable collateral to the lender in the form of cash or other acceptable securities of equal but often greater value than the lent securities to protect the lender against any default by the borrower.The borrower must return the securities at the end of the  period.

According to the report, a total of 31.1 million ordinary shares of GTBank valued at N899 million were available for lending as at the beginning of this week. Also, a total of 77.333 million ordinary shares of Zenith Bank worth N1.70 billion were available. A total of 11.196 million ordinary shares of MTN  worth N1.84 billion were available while a total of 43 million ordinary shares of DSR worth N714 million were placed for borrowing.

Under the securities lending arrangement, the lender temporarily loan its securities to the borrower. Borrowers seeking to borrow securities would do this through a security lending agent.

The borrower would need to enter into a Global Securities Lending Agreement with the securities lending agent, who is typically the custodian of the securities. The securities lending agent would need to have a Securities Lending Authorisation Agreement in place with the owner of the security before the security can be lent.

Once the security is lent, the legal title of the security passes from the lender to the borrower, but any benefits arising from corporate actions such as scrip issue or dividend payments are retained by the lender, the beneficial owner.

The lender regains title when the securities are returned by the borrower at the end of the loan tenor or when the lender calls for the stock if the agreement was a call tenor. The securities recall is usually stipulated by the terms and conditions of the securities lending contract.

Borrowers include market makers, broker-dealer firms, investment banks and hedge funds while lenders include large institutional investors such as pension funds, insurance companies, mutual funds, sovereign wealth funds, investment companies, holding companies, high net-worth individuals and retail investors.

Securities lending enhances the liquidity and price discovery functions of the market while providing more income to all parties.

By Ambrose Nnaji

Rite Foods Limited has affirmed that it produces under high ethical standards and hygienic conditions in line with global standards.

Its Managing Director, Mr Seleem Adegunwa, said the company compares favourably with other food companies such Leventis Foods Limited, UAC Foods and UTC.

He said the company is also gaining market share in the soft drinks and energy drinks’ segment of the beverage industry.

Adegunwa spoke during the Brand Academy organised for reporters in Ogun State by the company.

He said the company has a rich heritage of quality, having started production in 2012.

He said Rites Food is an institution that believes in hard work and dedication, adding that the company still has the potential for growth as it though the company has 20 percent of its plans earmarked for the future.

Assistant Brand Manager, Rite Foods Limited, Boluwatife Adedugbe said the company, established in 2007, is a world-class,  Nigerian foods and beverages manufacturing company, and subsidiary of Essy-Ay Holdings Limited

She said the factory, which began operation in 2012, is another community, with world-class equipment responsible for the production of sausage and beverage drinks.

The reporters were taken on a factory tour by the Production Manager, Mr. Michael Ibikunle, which started at the state-of-the-art bakery that produces 27,000 sausages per hour and also the beverage factory which produces 37,800 bottles per hour. The tour rounded off at the energy section, which consisted of gas generators, and one mega watt solar.

“At Rite Foods Limited, we intensify the trail with our Bigi soft drinks, the family’s favourities in the soft drink segment, and we have added other exciting variants now comprising the Bigi Cola, Bigi Orange, Bigi Apple, Bigi Bitter Lemon, Bigi Soda Water, Bigi Lemon and Lime, Bigi Tropical, Bigi Chapman and Bigi Tamarind, Bigi Cherry Cola, Bigi Ginger Lemon, Bigi Ginger Ale,” Adedugbe said.

According to her, the Bigi premium table water is produced with global best practices in purification for hydration, freshness, and healthy living.

She said the company has highly nutritious brands that included the Rite Sausage and Bigi soft drink variants, introduced into the market in 2008 and the Fearless Energy Drinks in 2017.

“Since then, the brands have set the pace for others to follow, as the most preferred products by families nationwide, as well as addressing the market need of young pupils in schools,” Adedugbe said.

She said it was the company policy to comply with regulatory bodies such as the National Agency for Food, Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON) and other national and international standards.

“So, anything you see us producing is because somebody has made an order for it, if they don’t make order, we don’t produce because no customer will buy a product that’s not fresh, everybody wants to buy a product that’s fresh, some of the products are traveling far places like Onitsha and Port Harcourt, among others.

“It’s important that customers are getting it fresh and also the customer needs to get it the same day because if it’s getting late people may not want to buy it, they are losing before it get to the distributor, before it gets to the retailer in just within ten days, it has to be fresh so that the person buying it would buy it fresh as the first day it was produced.

“That’s to imply that we produce only when a customer makes an order, it has to be fresh, because some are going to majorly South-East, South-West, and South-South because we can’t go to the North for now because of the distance, it takes days to get to the northern parts of the country,” Adedugbe said.

On transportation, she said the company has three models of transportation but blended the three models into one loading bay. She said the palletized was for those who actually want it, for the Eastern part of the country they dwell more on the containerized body, while the Northern part prefer using their vehicles, so irrespective of tribe, race and region, the company is ready to give what customers want.