The Nation Newspaper

Category: Money

  • FBNQuest: why firms need private equity in capital raising

    FBNQuest: why firms need private equity in capital raising

    By Collins Nweze

     

    FBNQuest has highlighted what companies raising funds through private equity and alternative investments stand to gain.

    In a report, the company explained that although there are various options for raising capital and attracting investors, equity is one of the two most sort after options.

    The option, it said, allows a company to give a share of ownership of its business to an investor in expectation of a return as the business grows. Unlike public equity (stock market) with ownership of shares in a public company, private equity (PE) simply means ownership of shares in a private company.

    Private equity, it added, is a type of capital investment (asset or security) made to (target) companies that are not publicly traded on a stock exchange. As an alternative form of private financing, private equity allows investors directly invest in companies through which such investors gain an ownership stake in the companies. Investors seek PE funds to earn returns that are considered to be better than those from the public equity markets.

    “To avoid debt, companies can sell its stocks to raise money that can be used to fund new technology, make acquisitions, expand working capital, and fund projects geared towards business growth. Usually, the financial information on stocks of such a company is not disclosed to the public, rather an investor can only speculate on the asset worth of the intending company,” it said.

    FBNQuest said private equity involves three parties: the investors who supply the capital, the private equity firm that manages and invests the money on behalf of the investor via a private equity fund, and the company (known as Portfolio Company) that the private equity firm invests in.

    “A private equity firm’s ultimate goal is to sell or exit portfolio companies to deliver superior returns (above the benchmark return also referred to as Internal Rate of Return (IRR) to earn carried interests). The most widely adopted investment strategies by PE investments are leveraged buyouts (LBOs) and venture capital (VC) investments,” it said.

    In LBOs, a PE firm will raise debt from institutional investors on the back of a target company and assume control of the target company, while using the cashflows of the target company to pay the acquisition capital,” it said.

    “Generally, private equity firms are active investors who are involved in the board level and monitor the financial and operating performance of portfolio companies. However, some private equity firms are involved in the day-to-day operations of portfolio companies and may take C-level positions such as CEO, CFO, CIO  and  COO  to  ensure that  value creation initiatives are implemented in the portfolio companies to ensure that increase in revenue, improvement of operational efficiency and corporate governance”.

    FBNQuest said a private equity fund is typically opened to institutional and accredited (individual or business entity) investors who invest large sums of money for a long period. Institutional investors are companies or organisations like endowment funds, commercial banks, hedge funds, mutual fund managers, and insurance companies that invest money on behalf of other people.

    It said accredited investors on the other hand are individuals or a business entity that invest based on their income, net worth, asset size, governance status, or professional experience. The reason is that private equity as an asset class is generally illiquid and has a long lock-up period and only ideal for investors with a large asset size (or AuM).

  • Digital banking to the rescue

    Digital banking to the rescue

    Nine years after the Central Bank of Nigeria (CBN) rolled out the cashless banking scheme, many people have come to realise its gains, writes COLLINS NWEZE.

     

    As the coronavirus (COVID-19) pandemic rages, bank customers are also thinking of their health safety while carrying out their transactions. That is where cashless banking comes to mind.

    Cashless banking has faced several criticisms since it made its debut nine years ago. From poor quality of service,  double debits, excess cashiers to loss of funds to fraudsters, e-payment users have negative stories to tell.

    With COVID-19 on the loose in Nigeria, bank customers were advised to reduce human contacts during their transactions.

    As at January 15, 2021, the Nigeria Centre for Disease Control (NCDC) said there were 107,345 confirmed cases in the country, 84,535 discharged and 1, 413 dead.This scenario provided an opportunity for those that abandoned cashless banking to return.

    Hence, the industry has witnessed the widespread use of the e-payment channels – Automated Teller Machines (ATMs), Point of Sale (PoS) terminals, web payment, online transfers and even mobile phones for transactions. These channels are the easiest ways to transact without physical contact, which is the fastest route to spread the coronavirus. Deposit Money Banks (DMBs) are now advising their  customers to use alternative digital channels for their transactions.

    Ecobank Nigeria, First Bank, Unity Bank, Wema Bank and Access Bank, among others, have reiterated the gains of cash-less banking.

    For instance, customers of Ecobank have been encouraged by the bank to utilise its digital self-service solutions, including Ecobank Mobile App, Ecobank Online, EcobankPay, Ecobank OmniPlus, OmniLite and the RapidTransfer App without having to visit branches. This is part of efforts to ensure social distancing which will help curtail the spread of COVID-19.

    According to the bank, customers can “Bank from anywhere” by  utilising digital solutions to easily access their bank accounts, make payments, transfer funds, process salaries, and carry out other ancillary banking transactions from the comfort of their homes and offices without visiting branches. The bank advised that its branches remain open and available to customers who choose to visit to carry out their transactions.  The bank emphasised that its branches are equipped with all prescribed preventive measures.

    Also, the bank noted that as part of its self-service options, customers could create virtual cards for eCommerce and other online transactions on the Ecobank Mobile when required. It noted that Ecobank also provides online and digital product assistance through its Chatbot, Rafiki on Ecobank Online or Mobile, and through  24/7 Contact Centres across the group.

    The bank reiterated that “standard measures have been put in place at the branches across the group to help curtail the spread. These include provision of temperature checks at all entry points to screen employees, customers and visitors; installation of hand sanitisers; equipping customer-facing staff with emergency response plan;  encouraging social distancing especially from anyone who is coughing or sneezing; educating branch staff on international best practices recommended by the Federal Ministry of Health and the World Health Organisation (WHO) and actively updating customers and employees on the COVID-19.

    Group Chief Executive Officer, Ecobank Transnational Incorporated (ETI), Ade Ayeyemi said: “This is an unusual, extraordinary and difficult period in time. At Ecobank, we do understand that COVID-19 is impacting a number of people and causing others serious concern and anxiety. We will continue to stay abreast of the situation in order to adapt to changing developments for the good health and well-being of all our customers, employees and communities. Together let’s keep well and safe, following the instructions given to us by the world health experts for our better health.”

    And so, for the past nine years since the exercise kicked off in 2012, first in Lagos and later across the country,   cashless banking is gradually becoming a lifestyle with those that failed to embrace the scheme learning the hard way.

    Take for instance, Azu Stevens, a 40-year-old entrepreneur, who spends a part of his business time in banking halls making payments to his suppliers of goods.

    During one of such visits to a bank in Central Lagos, a cashier who has been monitoring him for years, including his frequent visits to the banking hall, decided to tell him about electronic payments.

    “You don’t need to be physically here to pay your suppliers. You can do it at home, or even in your shops or through mobile phone,” the cashier told Stevens.

    That was the turning point for the businessman. For the past three years after that encounter, Stevens has never visited the banking hall. His android phone is now his bank.

    He is one of the millions of Nigerians that have been captured by the cashless banking fever.

     

    CBN’s position

    The CBN has admitted that a lot more has to be done in the implementation of the cash-less policy. The regulator has, therefore, urged stakeholders to reduce the use of cash across all segments of the economy while urging the banks to also reduce cost of providing banking services, which many perceive as too high.

    According to the regulator, the cashless policy provides safe and efficient mechanisms for making and receiving payments with minimum risks to the CBN, payment service providers and end-users.

    “To participate actively in the global economy, our payment system must be successfully bench-marked against the global best practices, as in most developed nations of the world. We have made some significant achievements so far in this journey, but a lot still remains to be done,” it said.

     

  • Union Bank, employees support communities 

    Union Bank, employees support communities 

    By Collins Nweze

     

    Union Bank and its employees have built communal water boreholes in six communities.

    The donations formed part of activities to mark the bank’s  Employee Volunteer Day (EVDay) introduced in 2019.

    The Gift of Water project was selected to provide more  underserved communities with access to potable water supply, improving their quality of life and enabling them maintain the proper handwashing routine advised by World Health Organisation (WHO) COVID-19 guidelines.

    According to WHO, “About 63 million Nigerians do not have access to improved drinking water sources, and only 42 per cent of households in rural areas have access to safe drinking water”.

    The boreholes were built in Ubulu Uku, Delta State; Gidan Dagachi Kureken Sani, Kano State; Kpebi-Sarki, Abuja; Ohubo Village, Ama Nkanu Community, Enugu State; Sari Iganmu, Orile, Lagos State and Abujan Amare, Gashua, Yobe State.

    The Chief Executive Officer Union Bank, Emeka Emuwa said: “Union Bank is proud to lead the charge for social impact. Initiatives such as this present the opportunity to give back to the society and support the average Nigerian. We are pleased by this clear demonstration of the Union Bank culture of community service and corporate citizenship.”

    Also, the bank’s Head of Corporate Communication and Marketing, Ogochukwu Ekezie-Ekaidem, said: “Union Bank is pleased about this opportunity to impact over 15,000 lives through this project. ‘Community’ is one of our core values as a bank, and it is rewarding to see our efforts create true impact. Over 2,950 employees donated funds towards this initiative, with the Bank matching every N1,000 raised, to ensure that six communities have potable water supply.”

    Haske Foundation, a Non-Governmental Organisation (NGO) for clean potable water accessible to rural communities in Nigeria, was engaged to ensure long-term sustenance of the community boreholes.

    The Foundation will monitor and provide technical assistance for the project for 12 months. In addition, committees were set up in each of the communities, to ensure good coordination and proper use of the facility by community members.

  • Wema Bank scored higher in customer service, digital banking

    Wema Bank scored higher in customer service, digital banking

    By Collins Nweze

     

    Wema Bank Nigeria Plc has been ranked high in two surveys on the banking industry.

    In its 2020 Digital Channel scorecard, KPMG Nigeria named the bank as a leader in payments and transactions in digital banking.

    Also, in its recently-released Banking Industry Customer Experience Survey, the consulting  firm stated that Wema Bank climbed 10 places to second position in the Retail category.

    Following a qualitative study of 17  commercial banks focusing on retail banking, KPMG Nigeria’s Digital scorecard tested customer experience across five areas – Digital Onboarding, digital payments and transfers, digital lending, self-service and customer care.

    It categorised banks into four distinct categories: Leaders, challengers, followers and late starters.

    Wema Bank emerged a leader in the Mobile & Internet banking (payments/transfers) and the self-service categories.

    The assessment also shew the bank’s digital banking platform, ALAT By Wema, as the best digital banking channel in Nigeria.

    According to the report, ALAT By Wema stands out because “the user interface is simple, and only relevant information is visible on the screen, thus keeping design minimal, user friendly, and removing the possibilities for user errors or confusion”.

    The digital banking platform has not only provided the latest banking technology, it fits perfectly into the lifestyle of Nigerians; making life easier for everyone.

  • Incubator Reality: Startups to contest for N1b

    Incubator Reality: Startups to contest for N1b

    By Collins Nweze

     

    The Incubator Reality has created N1 billion novelty incubation programme for start-ups to increase their access to funding.

    The Incubator Reality will admit 25 contestants who will work in five teams for 12 weeks and graduate with the seed fund for the winning team and first runner-up totalling $1.7 million.

    In a statement, ECSCORP, the incubator’s architect, said the firm seeks to change the start-up narrative by creating a start-up hub where best brains are incubated to encourage product exposure, partnership, and funding.

    “Start-ups encounter many challenges, especially during the formation stage. These challenges range from seed funding, partnership and investment, business resource and mentorship. Unfortunately, many brilliant individuals, teams, talents are out there hoping for a turnaround and better days to come where their thought-of innovation can become reality,” the statement said.

    Start-ups, coined SMEs (Small Medium Enterprises) many decades ago, are confronted with challenges that cause their failure, sometimes before they even get started while some barely survive the first two years. There is a critical need to pay attention in this direction. Nigeria, a hub of raw talents, has what it takes to compete globally, however, the specific challenges that start-ups face make it near impossible.

    “Our local talents are blessed with ideas and innovation that can compete with their peers in other nations of the world, but our banks have low appetites to support these talents, their ideas and innovations. Angel investors and seed funding, which are the first business drivers, are almost non-existent hence the creation of The Incubator Reality.The show will focus on revolutionising the quondam challenges of start-ups,” the statement said.

    The Incubator’s architect further said the winner and first runner-up of the programme will receive $1 million and $0.7 million.

    “The Incubator Reality aims to address the most crucial challenges in Nigerian start-ups, which is –  how to leverage knowledge, creativity and innovation – to leapfrog ahead of or at the very least, be at par with many of the developed economies within the shortest possible time, creating mega companies, more jobs and opportunities.”

    The Incubator Reality will minimise brain drain while fostering growth and development. Contestants will be able to showcase their brand and attract attention to their talent; their business is already a success before they graduate from the Incubator.

    “The viewers will be inspired as well as the partner brand having maximum exposure with a projected 40 million views, and Nigeria benefits from growth in GDP and direct investment to business growth,” the Incubator architect explained.

  • Banking sector recapitalisation may define sectoral competition

    Banking sector recapitalisation may define sectoral competition

    The recapitalisation of the banking sector, which followed continued depreciation of the naira against global currencies, may become a dominant factor in sectoral competition in the year. Although part of the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele’s five-year plan, not much has been heard in terms of banks shoring up their capital bases. But the depreciation of the naira against dollar means more lenders will raise fresh capital to boost their capital base for domestic and global competition, writes COLLINS NWEZE.

     

    WHEN the Central Bank of Nigeria (CBN) Governor Godwin Emefiele unfolded his policy direction for the next five years, recapitalisation of banks topped the list.

    Under the impending exercise, banks will raise their capital base above the N25 billion minimum level adopted in 2004. The CBN boss also plans to lead the economy to double-digit growth, single-digit inflation, $12 billion non-oil exports by 2023 and raise financial inclusion to 95 percent by 2024 while retaining the managed-float exchange rate.

    The CBN guidelines stipulate that regional banks must have a minimum paid-up capital of N10 billion, national banks, N25 billion and banks with international operations N50 billion.

    According to Emefiele, the 2004 recapitalisation, which increased banks’ capital base from N2 billion to N25 billion, has weakened. He plans to pursue a programme that will make the banks rank among the top 500 in the world.

    Managing Director/CEO Afrinvest West Africa Limited, Ike Chioke advised that in the year, the industry would now require a recapitalisation exercise in the short to medium term as hinted by the Central Bank of Nigeria.

    He, however, said the currency environment and weak investors sentiment pose a big challenge to the exercise.

    “The underpriced valuation of the banking sector many hurt banks seeking to raise tier-1 capital while tier-2 capital funding cost may be unaffordable to the current risk environment. The CBN directed that the minimum interest rate on savings deposit be reduced to a minimum of 10 per cent of Monetary Policy Rate (1.25 per cent), the previous minimum of 30 pr cent of MPR (3.75 per cent) effective from September 1, 2020,” he said.

    Even the International Monetary Fund (IMF) believes that Nigeria’s banks needed improved capital. Its Monetary and Capital Markets Department Director Tobias Adrian advised the banks to seek higher capital through recapitalisation and also tackle rising Non-Performing Loans (NPLs).

    Emefiele  said: “In the next five years, we intend to pursue a programme of recapitalising the banking industry to position Nigerian banks among the top 500 in the world. Banks will, therefore, be required to maintain higher level of capital, as well as liquid assets in order to reduce the impact of an economic crisis on the financial system.

    “You will all agree with me that it was Governor Charles Soludo in 2004 that did the last recapitalisation we had, moving the capitalisation from N2 billion to N25 billion. And I must commend those efforts because it resulted in positioning Nigerian banks not only in Africa, but also being among the banks in the world in terms of capitalisation and it also increased or helped to strengthen the banking industry capacity to take on large ticket transactions- and those are some of the things we badly need today.”

    Other stakeholders said recapitalisation would provide more funds for the banks to do business, especially consumer credit, mortgage finance, which they have not been given any consideration.

    Also, recapitalisation will give banks the power to take advantage of opportunities in the industry, and lend more to the real sector.

    Many banks had eroded their capital due to the high level of NPLs, adding that recapitalisation would present a new lifeline for the banks.

    Association of Bureau de Change Operators of Nigeria (ABCON) President Aminu Gwadabe said recapitalisation would help the banks remove toxic assets from their balance sheets which make it difficult for them to lend.

    The exercise, he added, would help the lenders attract new foreign and local investors that would provide the needed capital for them to take bigger roles, including investment in infrastructure.

    He said the banks were not lending as expected, adding that recapitalisation would provide them with the right capital mix to lend to larger segments of the economy.

    Former Executive Director, Keystone Bank Richard Obire said recapitalisation would draw yes and no answers depending on where one stands.

    He described the NPLs as high and real, noting that a number of banks, including the tier-1 lenders are affected by the rise in bad loans.

    Budget implementation

    Aside banking sector recapitalisation, the next big thing that will define Nigeria’s economic performance in 2021 is the execution of the N13.58 trillion budget.

    An economist, Boniface Chizea, says the  implementation of the 2021 Budget at the beginning of the year will positively impact the prospects of the economy in the year under review.

    Chizea, who is the Chief Executive Oficer of BIC Consultancy Services, said: “It is a good development that the budget has been approved ready for implementation from the first day of the year.

    “This is a welcome and cheering news as this development is bound to positively impact the prospects of the economy in the year under review”, he said.

    He recalled that 2020 was a year the  economy witnessed its worst performance in recent memory due to a combination of deleterious factors.

    He identified the factors to include the COVID-19 pandemic which set in toward the end of the first quarter of last year and the EndSARS protests that occurred last October .

    Other factors include the lackluster performance of the oil market and the mixed fortunes of the exchange rate of the Naira, among others.

  • Capital Markets: Entering new growth phase

    Capital Markets: Entering new growth phase

    The capital market braced through the COVID-19 pandemic to a world-leading performance in 2020. Capital Market Editor/Deputy Group Business Editor, TAOFIK SALAKO, reports that 2021 will also be an equally exciting year for the market as it transits into newness on many fronts.

     

    THE capital market was the silver lining in the economy clobbered by foreign exchange crisis, hyperinflation, lockdowns, disruptions and recession. Amid the COVID-19 pandemic and the intense disruptions to economies and corporate plans, the Nigerian capital market remained open for business throughout 2020 and posted several landmarks.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average full-year return of 50.03 per cent in 2020, equivalent to net capital gain of N6.483 trillion. The recent highest return was 42.3 per cent recorded in 2017.

    The All Share Index (ASI)- the value-based common index that tracks all share prices at the NSE closed 2020 at 40,270.72 points, 50.03 per cent above 26,842.07 points recorded as opening index for the year. Aggregate market value of all quoted equities at the NSE rose to N21.057 trillion as against N12.958 trillion recorded as opening value for the year, an increase of N8.1 trillion.

    The additional increase in value of market capitalisation, above the ASI percentage change, was due to additional or supplementary listing of shares during the year.  Other landmarks included the launch of Nigeria’s biggest corporate bond and the largest foreign-driven shareholders’ recapitalisation of a quoted company.

    The new business year is on many fronts a year of momentum for the capital market. While the secondary market, with its thrills and shrills of gains and losses, will continue to signpost the market at a glance, more profound institutional and regulatory changes will define the market in 2021. The first major change is the full demutualisation of the 60 years old NSE. Demutualisation, the conversion from a mutual, member-owned non-profit status to a profit-making, shareholders-owned, public limited liability company, is arguably the biggest change at the NSE in more than three decades and probably the final metamorphosis of the NSE.

    Established as the Lagos Stock Exchange on September 15, 1960 under the provisions of the Companies Ordinance 1922, with a share capital of £5,000 divided into 500 ordinary shares of £10 each, the name of the exchange was changed from Lagos Stock Exchange to Nigerian Stock Exchange on December 15, 1977.

    With the enactment of the Companies and Allied Matters Act (CAMA) 1990 and prohibition of companies limited by guarantee from being registered with a share capital; the NSE was re-registered on December 18, 1990 as a company limited by guarantee and the then existing share capital of N20,000 was cancelled and the equity rights of the initial subscribers extinguished. The demutualisation of the NSE is expected to be completed this year with the listing of the shares of the emergent holding company listed for public trading around the second half of the year. The new year already started with major announcements on incorporation of subsidiaries, leadership and complaints management.

    The demutualisation of the NSE is expected to further open up the competitive landscape at the stock market, with the NSE being able to drive major growth agenda while other trading platforms and exchanges riding on the ‘sense of emotional detachment’ to close gaps and foster a more competitive market with various privately-owned platforms for issuance and listing.

    The automation of the capital market is also expected to reach its crescendo this year. The launch of online public offering platform, the first of such initiative in Africa, brings the primary issuance processes to par with the secondary market processes, with enormous prospects for the depth and liquidity of the entire capital market. The global virtual public offerings subscription’s platform, known as X-PO by the NSE, will allow investors to conveniently subscribe and make payments for public offers through the web and mobile (USSD), from anywhere in the world. This innovation is expected to berth more innovations with other exchanges and stakeholders offering similar versions. As it was with the launch and proliferation of secondary market’s online trading platforms, the electronic offering (e-offer) is expected to significantly transform the primary market segment, removing the hassle of physical completion and submission of public offering applications forms, visiting bank for payment, delay in offering and allotment period and overall cost of issuance. The launch of e-offering is also expected to provide impetus for pending major initial public offerings (IPOs).  Regulations and market exigencies are also expected to culminate in many technological tie-ups including in the areas of identity management, trading and settlement, filing, investors’ relations and dividend payment. The passage into law of the bill establishing government-promoted Unclaimed Dividend Trust Fund, while it may be meddlesome and insensitive at first sight, is expected to rouse the market to remove the rep tape, corrupt practices and disconnections that have fuelled unclaimed dividend, and dampen popular participation in the market.

    The secondary market performance will depend on the same factors that propelled major recovery in 2020, but at a slower pace in 2021. Foreign exchange, inflation, naira depreciation and corporate earnings will determine the direction of the stock market. Against the background of the whooping 50.03 per cent return in 2020, many analysts see a moderate positive performance in 2021. But the market is full of surprises, as it did in 2020.

    “Our prognosis for the stock market in 2021 is that domestic interest, fueled by dividend expectations, is likely to sustain the market rally in first quarter 2021. However, in the absence of foreign demand, we see a short-term bear market from second quarter to third quarter 2021,” United Capital stated.

    In what may have a major impact on the pool of expertise at the capital market, the Chartered Institute of Stockbrokers (CIS) will commence the implementation of a new syllabus as well as new membership rule in line with existing realities in Nigeria and globally. It is also expected to see a major push for the passage of the Chartered Institute of Securities and Investments (CISI) bill, which aims at deepening professionalism across various functions in the market under a single process of certification and standardisation.

    At the emerging segment of alternative securities, Eagle Global Markets (EGM), which provides resources for trading in Bitcoin, Ethereum, Litecoin, Ripple and other kinds of Cryptocurrency (CFDs), stated that it expects stronger regulation and improved performance for crypto in 2021. Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), which is focusing on fintech and other alternative securities to protect investors in uncharted territory, is expected to further concretise its rules on derived and alternative securities.

    “While 2020 taught us that nothing is guaranteed, many analysts are predicting an optimistic run for the markets in 2021,” EGM stated.

    The Lagos Commodities and Futures Exchange (LCFE) is also expected to commence trading operations this year, opening up new investment channel and further diversifying the capital market. LCFE plans to trade on agricultural commodities, solid minerals, currencies and oil and gas.

    With the markets becoming more dynamic and resilient, 2021 may not be measured in terms of high-end double-digit return, but it surely looks more positive for the long-term growth and development of the capital markets.

     

     

     

  • AfDB appoints directors general for African regions

    AfDB appoints directors general for African regions

    Collins Nweze

     

    THE African Development Bank (AfDB) has announced the appointment of Directors General for east, central and southern African regions. The banks also appointed Deputy Directors General for east, central and southern regions. Serge N’Guessan, was appointed Director General, Central Africa Region.

    As Director-General, Central Africa, Serge will drive and ensure the operational efficiency, effectiveness and overall health of the Bank’s portfolio across the Central Africa Region.

    He will also spearhead regional business development and investment, driving resource mobilisation across the countries under his remit and growing the business of the bank significantly.

    Serge, a Canadian citizen, is a professional with over 30 years of experience in international development and portfolio management, who has held important representation roles within the bank for almost 10 years.

    Nnenna Lily Nwabufo, was appointed Director-General, East Africa Region. As Director General, East Africa. Nnenna will be responsible for leading and advancing the Bank Group’s strategic objective of achieving significant and transformational developmental impact in 13 countries in East Africa by ensuring operational efficiency, effectiveness and an overall healthy portfolio in the region.

    Specifically, she will lead high-level dialogues at country and regional levels and across Bank sector complexes as well as oversee the full implementation and integration of all aspects of the bank’s work in the region.

    She will also spearhead regional business development and investment, and foster resource mobilization efforts across the countries in the region to ensure focused growth of the Bank’s sovereign and non-sovereign operations.

  • Ecobank Nigeria launches radio programme for SMEs

    Ecobank Nigeria launches radio programme for SMEs

    Collins Nweze

     

     

    ECOBANK Nigeria has launched a radio programme – “Ecobank Business Hour” targeted at empowering small and medium enterprises (SMEs) in the country.

    Emeka Agada, Head, SME, Ecobank Nigeria, says the programme which is being syndicated across 10 radio stations in Nigeria is one of the several initiatives the bank is deploying to empower its SME customers with the right resources to thrive. He stated that the programme will also enlighten the public about the various solutions designed by the bank to help businesses.

    He explained that the radio programme being produced by Royal Roots, one of Nigeria’s leading production companies, has already commenced and will be aired for an initial period of 13 weeks. He added that the rich content will help entrepreneurs and business managers to upskill and reskill for growth in the new digital landscape.  According to him, “This further underscore our unwavering commitment to supporting and sustaining the development of SMEs in all sectors of the economy. The radio programme promises to be an impactful series. I encourage all small business operators including their customers, friends and family members to set aside time to listen to the programme and get tips on how to grow their businesses.”

    Read Also: Ecobank restates commitment to AfCFTA

    Also speaking, Greg Odutayo, Managing Director, Royal Roots, said the programme will enable aspiring entrepreneurs understand how to set up and manage successful businesses. He commended Ecobank for supporting a programme of this nature, capable of generating positive activities in the SME space.

    The Business Ecobank Hour is being anchored by the duo of Greg Odutayo, a presenter, producer and director with over 28 years of professional experience and Helen Ese Emore, an international facilitator, seasoned MSME project development and business coach. The programme will run in 10 radio stations including, Inspiration 92.3FM, Lagos, RayPower 106.5FM, Kano, Odenigbo 99.1FM, Obosi, Liberty 91.7FM, Kaduna and PH Family Love 97.7FM, Port Harcourt and of others.

     

  • IMF: Robot revolution will create 97 million new jobs

    IMF: Robot revolution will create 97 million new jobs

    Collins Nweze

     

    THE International Monetary Fund (IMF) has said that as the economy and job markets evolve, new roles will emerge across the care economy in technology fields (such as artificial intelligence—AI) and in content creation careers (such as social media management and content writing), which will create seven million new jobs.

    In a report released yesterday, the Fund said the emerging professions reflect the greater demand for green economy jobs; roles at the forefront of the data and AI economy; and new roles in engineering, cloud computing, and product development.

    “The up-and-coming jobs highlight the continuing importance of human interaction in the new economy through roles in the care economy; in marketing, sales, and content production; and in roles that depend on the ability to work with different types of people from different backgrounds.

    It said the workforce is automating faster than expected, displacing 85 million jobs in the next five years. “Automation, in tandem with the COVID-19 recession, is creating a “double-disruption” scenario for workers. Companies’ adoption of technology will transform tasks, jobs, and skills by 2025. Some 43 percent of businesses surveyed indicate that they are set to reduce their workforce because of technology integration, 41 percent plan to expand their use of contractors for task-specialised work, and 34 percent plan to expand their workforce as a result of technology integration. Five years from now, employers will divide work between humans and machines roughly equally,”it said.

    In 2025, analytical thinking, creativity, and flexibility will be among the most sought-after skills. Employers see critical thinking, analysis, and problem solving as growing in importance in the coming years, although these have consistently been cited in previous editions of the survey.