The Nigeria Sovereign Investment Authority (NSIA) in partnership with the Rural Electrification Agency (REA), is investing in the off-grid renewable space.

The NSIA-REA partnership will see the NSIA creating an initial revolving fund of N10 billion for qualified developers to distribute and manufacture Solar Home Systems.

The Solar Power Naija Programme is being launched under the Buhari Administration’s Economic Sustainability Plan (ESP) and supervised directly by the Vice President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo.

The fund will be accessible by Nigerian Electrification Program qualified developers under the existing REA and World Bank scheme that guides technical qualification and provides grants for developers to invest and participate in off-grid electrification projects. The REA under the Ministry of Power will provide technical and advisory support to the NSIA as it rolls out the program.

This investment by NSIA is targeted at catalysing 200,000 Off-Grid connections in the first instance with a goal of reaching over 500,000 systems as the Fund revolves and is expanded through to 2023.

The programme is estimated to also create up to 20,000 jobs across manufacturing, assembly, installation and retail over the period. Additionally, this partnership will help Nigeria meet its ESP target of increasing Electrification, this is a step towards creating 5 million solar connections over the next few years. At completion, it is expected that this investment will demonstrate locally that the Solar Off-Grid space is an investable segment of the power market.

Speaking on the partnership and the programme, Managing Director/CEO of the REA, Ahmad Salihijo said “the partnership with NSIA is exciting in so many ways, we believe this investment commitment as approved by the NSIA Board is a harbinger for increased investments in the Off-Grid renewable space that will help Nigeria achieve its goals under COP 26 and eliminate the Electrification Gap in the country”.

Managing Director/CEO of the NSIA, Uche Orji, in his comment said: “NSIA continues to prioritize climate-smart infrastructure to create access to affordable power to Nigeria’s underserved communities, particularly in the rural areas. NSIA recognizes the latent potential in these communities and believes that access to power is fundamentally important to enhancing the capacity of SMEs in these communities to support the economic growth of the country and employment creation”.

In recognition of Unity Bank Plc’s contribution to the growth of entrepreneurship among Nigerian youths, the National Youth Service Corps, NYSC has named the lender “Icon of Youth Empowerment” in an award presented to the Bank during the Skills Acquisition & Entrepreneurship Department, SAED Festival held in Abuja recently.

The NYSC management said it was on record that Unity Bank under the able leadership of the Managing Director/CEO, Mrs. Tomi Somefun had been unwavering in its commitment and support for the Skills Acquisition and Entrepreneurship Development programme of the NYSC as evident in the Corpreneurship initiative through which businesses of hundreds of corps entrepreneurs are being funded.

“In view of the foregoing, NYSC Management honours (Unity Bank) with the award of “Icon of Youth Empowerment” at the closing ceremony of the 2021 NYSC SAED Festival at NAF conference centre, Abuja on this 17th Day of December 2021,” said the Director-General of the NYSC, Brigadier General S. Ibrahim, while presenting the award to Unity Bank.

Speaking after receiving the award, the Group Head, Retail, SME and E-Banking, Mr. Olufunwa Akinmade said: “We are encouraged by this award to continue to partner with SAED in driving the Corpreneurship initiative.

We believe that the Corpreneurship Challenge possesses the capacity to unlock the entrepreneurship ingenuity of the youths in Nigeria.

“We commend the leadership of the NYSC for the award, even as we appreciate the leadership and the team at SAED for working hard to make this partnership produce the desired outcome. We are optimistic that the partnership will be sustained for as long as possible until it has impacted a critical mass that considerably reduces graduate unemployment in our nation.”

The Corpreneurship Challenge, which earned the lender the award is a business plan competition that provides corps members with the opportunity to pitch their business ideas and stand a chance of winning business grants ranging from N200,000 to N500,0000 as business capital while receiving mentorship.

Unity Bank premiered the Corpreneurship Challenge in 2019, with a launch in Lagos and in three other states which included Edo, Ogun, and Abuja, but with the increasing popularity of the initiative among corps entrepreneurs, the Bank has now extended the programme to 10 states of the federation including Lagos, Ogun, Abuja, Edo, Katsina, Enugu, Bayelsa, Akwa Ibom, Sokoto and Kaduna.

So far, Unity Bank has invested over N80 million in the initiative, which has now produced 58 winners since it was launched.

 

Interswitch, Africa’s integrated payments and digital commerce company, says it is committed to the digitisation of the processes involved in the transportation of people and goods in the country.

The Business Development Manager, Mass Transit Indeco at Interswitch, Nnenna ??Ajanwachukwu, disclosed this at the Lagos Transport Fest held recently in Lagos .

Speaking on the theme: ‘The role of digitisation in Nigeria’s Urban Mobility’, she noted that organisations  are beginning to see the need to use technology to solve the multifaceted challenges associated with daily commuting, from booking to the actual movement of people.

She highlighted the opportunities presented by the advent of the COVID-19 pandemic and associated restrictions in addition to the loss of revenue in nudging companies and entrepreneurs into birthing innovative solutions that guarantee safe and convenient commuting. Having identified that the transport sector was principally cash-based, she said Interswitch has  developed a solution to facilitate cashless payments and ensure commuters can make bookings seamlessly.

Ajanwachukwu added that the solution, which will be launched to the public in a few months, will add value to rail, water, air and road transport operators as well as private firms offering mass transit and ride-hailing services.

“We built a solution to digitise the transport system and connect with consumers through the Quickteller platform, making the process of booking for transport and payment seamless,” she said.

She said, “What we are doing with the platform is essentially to leverage technology in enabling the processes. The platform is robust and inclusive such that it caters to the needs of both the government and private companies.”

 

United Bank for Africa (UBA) Plc has delighted 63 of its customers spread across its various saving products at its ‘super savers promo draw.

The 63 lucky winners who will now have a merry Christmas courtesy of UBA, comprise 12 new millionaires, 20 kiddies and teens account holders who won N200,000 each as educational grant, 10 Next Gen customers who won N15,000 every month for a year, totaling N180,000 per person.

Also, 20 Lucky customers won N100,000 each, one lucky customer who won N500,000, another lucky customer smiled home with N1.2 million, while another customer got N2 million and 10 other customers emerged winners, winning N1 million each.

Winners who emerged on Tuesday amid great excitement from the draw, include Ogbenjuwa Divine Ishor; Ayomide Christianah Omogbehin; Bariweni Ebimoboere; Muslimah Funmilayo Saleeman; Oladejo Emmanuel Ayomide; Osinachi M Anugom; Precious Enyo-Ojo Obetta;  Smart Ejiroghene Angel; Chinedu-Chika Mmesoma Angel, among others.

Speaking at the draw, the Head of Personal Banking, Ogechi Altraide noted that the bank is committed to creating a positive impact in its customers and urged them to maintain and cultivate a lasting savings culture that is sure to be beneficial to their overall growth.

She said: “At UBA, the welfare and ultimate success of our customers and their financial freedom is at the Centre of everything that we do and this is why we are making millionaires, either by supporting your businesses, or by rewarding you for saving.

“And I’m happy that today we have witnessed the super savers promos, the draws and we have made 63 winners who have won amazing prizes this Christmas.  With this win they definitely will have a merry Christmas indeed as 12 of them actually have been made million years today and I’m happy that I can say that UBA has kept its word, we have rewarded our customers with the happiness and love they truly deserve.”

 

 

Fidelity Bank has again reiterated its unrelenting commitment to enrich the lives of its customers by rewarding winners in it’s Get Alert in Millions Season 5 (GAIM 5) campaign.

At prize presentation ceremonies at the bank’s head office in Lagos and several branches across the country, the bank formally rewarded the 10 lucky customers who emerged winners in the December 2021 monthly draw with the sum of N1million each.

Presenting the cheques to the lucky customers at the head office, Ken Opara, the promo Chairman and Executive Director in charge of the Lagos and South West Directorate took his time to educate winners on the importance of sustaining wealth.

He said, “A million Naira can be either big or small, depending on how well or poor it is put to use. As a proud SME bank, we are fortunate to be a part of the growth journeys of several businesses which started with a token and it’s a delight to see how prosperous they have become. We encourage all the lucky winners to be prudent with the spending, invest in their businesses and they will be on their way to financial prosperity”.

“As a bank, we are unwavering in our commitment to enhancing the welfare of our customers. We support our customers in becoming and remaining millionaires. This is very important to us, and I might say that we have competent people here and at various locations to guide you,” he added.

Receiving his cheque with utmost delight, Chikwem Isaac, one of the lucky winners, expressed his delight and plans to expand his business. He said, “I am extremely grateful to Fidelity Bank for this pleasant surprise. Although I opened the account a while back, I recently became an active user and I am grateful for the reward that came with it. This fund came at the right time as there has been brewing plans to expand my wife and I’s business. I can be sure that this time next year, our business will become one of which will be from grass to grace. A big thanks again to Fidelity Bank and I encourage as many people to take advantage of this savings promo campaign.”

The GAIM 5 promo is a savings campaign run by Fidelity Bank as part of its efforts to drive financial inclusion in the country. Qualification requirements for participation in the campaign include opening or maintaining a savings account with at least N2,000 to qualify for the weekly consolation draw of N10,000. Maintaining a savings account with at least N4,000 and activating their debit card qualifies customers for the monthly draw for a chance to win N1,000,000 and for the grand draw, maintaining a savings account with a minimum of N20,000 and activating a debit card would qualify customers for the opportunity to win the star prize of N10,000,000 or N5,000,000 and N2,000,000 for the first and second runners up respectively.

Since the inception of the GAIM 5 campaign in November 2021, Fidelity Bank has rewarded over 200 customers with N10, 000 each in weekly draws with a total of N125million in cash prizes to be won by the end of the campaign in July 2022. Overall, it is on record that the bank has given out over N4.1 billion in rewards to more than 10,000 customers.

The prize presentation ceremony was loaded with exciting activities for customers and was attended by regulatory bodies including the National Lottery Regulatory Commission and Federal Competition & Consumer Protection Commission.

In recognition of its innovative contributions to the growth and development of the Nigerian mortgage industry, Abbey Mortgage Bank has been honoured with the Innovative Mortgage Bank of the year 2021 by the African Housing Awards.

While receiving the award on behalf of the company,  the Executive Director, Treasury, Operations and Construction Finance, Oladipupo Adeoye, said, “We are honoured to be receiving this award. It is a reflection of the continuous effort of management towards providing creative solutions for our clients”

READ ALSO: Abbey Mortgage Bank floats N3b rights issue

He dedicated the award to the team at Abbey Mortgage Bank whom he stated that within the last one year, have been dogged to ensuring that Abbey is re-positioned as the Leading Mortgage Bank out of Africa, and to the board, partners and customers who believed in the Abbey journey, and the value we create.

Abbey Mortgage Bank’s Group Head, Corporate Services, Bukola Ewedairo, expressed delight over the recognition from African Housing Awards. She stated that closing the year with this award is an indication of the positive outcome of our transformation journey, rebranding exercise and the launch of our digital channels, our USSD code *5103#, internet banking and mobile app; and we are indeed proud to receive this award.

 

 

Private Sector Coalition Against COVID-19 (CACOVID), has emphasised that with the advent of Omicron, which is another variant of the deadly Coronavirus, it has never been more crucial for Nigerians to get vaccinated. Evidence suggests that the new variant may be more transmissible than Delta, but there are still many unknowns at play.

Nigeria’s daily COVID infections are reported to have jumped more than five-fold over the past few weeks following the discovery of the Omicron variant in the country. The average number of Nigerians who tested positive for the pathogen has risen to 451 a day for the week ending Dec. 12, compared with 76 in the preceding week, according to data from the National Center for Disease Control.

Spokesperson of CACOVID and the Managing Director, Aliko Dangote Foundation, Zouera Youssoufou, urged Nigerians to take the disease seriously, get vaccinated and take all necessary health precautions.

“Contrary to erroneous information being circulated, a COVID-19 vaccine will not make you sick with COVID-19. It is imperative to take the full dose of the vaccine to ensure maximum protection. People should continue to take all necessary precautions,” she said.

On December 1, 2021, Nigeria joined the growing number of countries that have recorded the first cases of the Omicron variant. The Lagos State Governor, Babajide Sanwo-Olu, has since declared that there has been a significant rise in the Omicron variant of COVID-19 in the state.

The Director-General of the Nigeria Centre for Disease Control (NCDC), Ifedayo Adetifa, has recommended vaccination to reduce the spread of the new variant. “All viruses naturally mutate over time and will continue to happen as long as the world does not act in concert to significantly reduce transmission through vaccination and adherence to effective public health measures.”

CACOVID further encourages Nigerians to continue to take preventative measures to protect themselves from the virus, such as frequent handwashing, wearing a face mask and maintaining physical distancing.

If you wish to grow your wealth and keep up against the rising inflation, investment is a must. Money kept as cash loses its buying power over time due to inflation. Hence, your monthly savings from salaries might be getting diminished in value each day if you have not invested in a worthy instrument.

If you have a full-time job, your income may be fixed but you will not have enough spare time to spend on capital markets. It is always better if you can invest your money as well as time while choosing an investment tool. However, for those who cannot spend much time on the analysis, there are a few investment instruments that won’t take much of your time for the research and analysis.

There are a variety of financial markets and investment instruments available in Nigeria. Each instrument has different risks and rewards and is ideal for different investors. We look at some types of investments that can be ideal for full-time employed individuals.

1.     Fixed/Term Deposit Bank Accounts

Many banks in Nigeria allow clients to open a fixed deposit bank account. This account will let you invest a specific sum of money for a known time period at a predefined fixed interest rate. The interest rate offered can be different for each bank in Nigeria and one must check and compare the rates before investing. Different Banks can offer interest rate between 4%-13.88% depending on the term of the deposit. The term of deposit can range from 30 to 360 days. CBN regularly publishes the interest rates of all the banks on their website titled – Deposit and Lending Rates in the Banking Industry. You can check and compare these rates while making your decision.

There is no market risk involved with the fixed deposit bank accounts as the returns are assured. For the same reason, this is also considered the least risky investment tool. However, there is a high inflation risk associated with fixed-income securities. The inflation rate in Nigeria was on an average 17.10% for period January to November 2021. If you are investing for lesser returns than the inflation rate, you may be reducing investment value over time.

Opening a fixed income bank account is similar to opening a normal savings bank account but there is a condition on term period before which you can’t terminate the deposit otherwise a portion of interest would be forfeited. Investors must check the time period and interest rate along with all the conditions before opening the fixed/tenured deposit account.

2.     Mutual Funds

Mutual funds are pooled investment instruments in which a professional fund manager handles your investment according to the objective of the fund. Each investment amount from various investors gets pooled up to form the Asset Under Management (AUM) which is then invested into suitable capital markets like stocks, bonds, commodities, etc.

Mutual funds are highly advantageous for the full-time employed individuals in Nigeria as you don’t need to analyse the markets and keep an eye on the prices. Although, you need to check the track record of mutual funds that you are investing in you must only look for funds that have performed best in the last 10 years by checking the past track record of the fund and then you must also read their prospectus for what assets they are investing in, their terms and risks.

You can check the returns, and risks of various funds by comparing them on online financial websites or you can ask a licensed investment advisor regarding this. After selecting a suitable fund based on your investment needs and your risk tolerance, investors can invest as a lump sum or periodically. The objective, portfolio, and strategy of the mutual fund must be understood before choosing one.

Investment in mutual funds can be done by applying for funds/opening an account with SEC-licensed mutual fund service providers and asset management companies in Nigeria.

Another similar method of investing is ETFs (Exchange-traded Funds), where funds are listed on Nigerian Stock Exchange (NGX), these funds track and invest in a basket of securities based on NGX benchmarked indices. The advantage of this option is that you can easily track and compare the past performance of ETFs on NGX and you can easily invest in fixed small denominations just like shares through NGX licensed brokers; buying and selling of ETF is easy just like shares at listed ETF price. ETFs, pay quarterly dividends to their investors which is listed on the Exchange website’s data.

3.     Investing in Dividend Stocks

Stock investments under normal conditions requires the investor to analyse the company and keep a regular watch on the price movements. Investment in growth and value stocks may not be ideal for a full-time employed individual. Hence, such investors should choose from the dividend-paying stocks on Nigerian Stock Exchange (NGX) that are less volatile. Selection of such stocks should be done on the basis of dividend-generating ability for long-term perspective.

The premium board of the Nigerian Stock Exchange (NGX) is an elite group of stocks that meet the most stringent corporate governance and listing standards including market capitalization of N200 billion Naira or more and publicly traded shares requirement of 20% of issued share capital, stringent reporting requirements. There are only currently 8 stocks on the premium board of NGX that meet these requirements including likes of UBA, FirstBank, Zenith Bank, Dangote Cement, MTN etc. These stocks are considered relatively less volatile and have good past track record and generally deliver good dividends to the shareholders as compared to other companies. Stocks listed on premium boards can be ideal for those who cannot spend enough time on research and analysis in the stock market.

Nigerian investors can open an account with a stockbroker that is licensed by NGX to start investing in dividend stocks. Dividend stocks and premium stocks are less volatile than others but they do involve market risk. Investors must acknowledge to risk elements and check the suitability of the stocks with investment objectives before investing.

4.     Real Estate Investing

Real estate investment is considered a low-risk investment with a high investment amount. Historically, the prices of real estate have increased substantially over the long term in Nigeria. Apart from buying and selling at a higher price, investors can also earn a profit by renting or leasing the property.

The limitation to real estate investing is that it requires a large investment amount while the liquidity is much lower than any other capital market. It is hard to search for a buyer and seller of real estate and liquidate the investment amount.

Real Estate Investment Trust (REIT) is an alternative to real estate with lower investment amounts and better liquidity. REITs are similar to mutual funds where pooled investment is done. Unlike mutual funds, REITs only invest in commercial real estate properties. The profits are made through buying, selling, renting, leasing the commercial properties or earning interest payments on mortgages on properties, this profit is then equally divided among the investors. REITs can be traded on NGX.

5.     Bonds

Bonds are the low-risk investment instruments that are ideal for many investors with a low-risk appetite. These are issued by the government and corporates to raise capital. Each bond has specific maturity tenure and a predefined rate of interest. Each bond carries a risk of getting default in which the issuer fails to make the promised payment on time. The default risk depends on the credit ratings of the bond.

Bonds issued by the government have the highest ratings as they are backed by tax money. Example of Government bond is FGN bonds. Hence, these bonds are likely to pay the lowest interest rate. Bonds with lower credit quality are likely to pay more interest rates. Investment in bonds is also subject to the risk of inflation. Many times, the returns on govt-issued bonds can go below the inflation rate which might diminish the value of the investment. You can trade the Government and Corporate Bonds on NGX.

What to Avoid

Being a full-time employed individual in Nigeria, there are certain aspects and financial markets that need to be avoided. In order to enjoy financial freedom and better investment experience following should be avoided.

·       Online Trading

According to Forex Beginner Nigeria, “Trading is among the most complex method to gain quick returns from capital markets. It requires a lot of effort to correctly analyse the price movements in short term. Even after correct analysis, there are multiple risk elements that need to be assessed and mitigated to lower levels. Most beginners lose money in trading online as they seek quick gains without spending time on research and analysis. It is reported that around 60% new investors lose money on online trading with instruments like Commodities, Forex and CFDs”.

For full-time employed individuals, trading online may not be an ideal choice. It is more like a business in which you have to generate regular income in short term by trading on the daily market movements, where anything can go wrong and lot have to be considered and monitored to make profits. It is unlike long-term investing where you gain capital appreciation in long term by investing in strong value and growth stocks.

·       Alternative Instruments

Alternative investments are investments made in an instrument other than traditional capital markets. Investments other than conventional instruments like stocks, bonds, real estate, mutual funds, etc are considered alternative instruments. The rising trend of cryptocurrencies, forex, and CFD investments may look lucrative in terms of returns but they carry substantial risk factors with them.

The price movements of alternative investment tools depend on multiple factors that can be complex to comprehend for a full-time employed person. The involvement of leverage in forex and CFD trades makes it risky and is not suitable for newcomers in investing.

·       Unlicensed Schemes

It is quite common to hear about schemes in Nigeria that are promising out-of-the-world returns without any risk. Some schemes are too good to be true and you might suspect a scam with such unrealistic promises. Fake schemes will force you to invest quickly without thinking, saying it is a limited offer. They also provide limited details about themselves and might restrict withdrawal by asking for too many documents.

Investors in Nigeria must check the license (like SEC or NGX), ask questions, check the withdrawal procedure, and several other details before choosing an investment provider/partner or broker. The number of scams associated with trading and investment is at an all-time high and investors must stay vigilant toward suspicious activities.

The Global Credit Ratings Company Limited (GCR) has upgraded the national scale long-term and short-term Issuer ratings of Lekki Gardens Estate Limited, Nigeria’s leading real estate company, to BBB+ (NG) and A2 (NG), respectively.

The GCR has also accorded a national scale long-term issue rating of A (NG)(EL) to Lekki Gardens Estate Limited’s Senior Secured Bonds, affirming that the outlook on the ratings is stable.

According to GCR, the ratings reflect Lekki Gardens Estate Limited’s strong competitive position within the Nigerian real estate sector, evidenced by its strong track record of project delivery, which has supported rising earnings, stable cash flows, and moderate gearing metrics.

GCR stated that Lekki Gardens remained resilient, with revenue increasing by 6.7 per cent to N20.9 billion in financial year 2020, underpinned by rising off-take and sale volumes EBITDA margin remained firmer and well above peers at 10 per cent, supported by the delivery of higher-margin projects and cost rigour despite the COVID-19 crisis and the attendant impact on the already challenged operating climate in Nigeria.

“As of first half of 2021, LGE has achieved a 29 per cent annualised growth in revenue, with EBITDA margin registering at 18 per cent. GCR expects the latent housing demand to continue to drive growth prospects, but the deferral of key discretionary spending, such as home purchases, will likely impact demand and pricing,” says GCR

Speaking on the significance of the Global Credit Ratings for the company, the Executive Director, Lekki Gardens Estate Limited, Mrs. Emily Atebe, disclosed that the investment-grade ratings affirmed the company’s financial stability and ability to meet its financial obligations to all stakeholders

The ratings further validate the company’s consistent and sustained strong financial performance and its resilience despite the very challenging operating environment.” she said.

The President of the Chartered Institute of Bankers of Nigeria (CIBN), Bayo Olugbemi has commended the introduction of the country’s first digital currency, eNaira, saying it was part of measures to deepen financial inclusion and integrate millions of unbanked Nigerians into the banking system.

Speaking at the 56th Annual Bankers Dinner of the institute, he noted that while the modality for the operation of the Central Bank Digital Currency (CBDC) is being fine-tuned, the launch of the electronic currency was a step in the right direction.

He praised CBN governor, Godwin Emefiele for innovative introduction of eNaira, saying” I have no doubt in my mind that it is a welcome development and a step in the right direction.

“Equally worthy of note is the improvement, though slight, being witnessed in the exchange rate of the Naira. I wish to call for its sustenance. We are certainly working in interesting times with global growth rate at its lowest and traditional norms being challenged on a daily basis.”

Olugbemi, who was attending his last CIBN dinner as the president of the institute as he would be handing over the mantle of leadership of the institute by May 2022, noted that his tenure builds “on the solid foundation laid by our predecessors, rooted in the tradition of constantly leaning forward into the future.

He thanked members of the institute for their support in the implementation of the A-TEAM Agenda of his administration. “I want to assure you that the institute will continue to devote its resources to the development of competencies whilst strengthening observance of ethics and professionalism in the banking industry.

He said traditionally, the Annual Bankers Dinner is the “CBN Governor’s Day” because it affords stakeholders’ the rare privilege of interacting and listening to Mr. Governor as he examines critical issues and fundamentals which has affected the banking industry within the year.