By Collins Nweze

A Finance Management expert, Nick Agule, has advised accountants to always be prepared for the tasks by upgrading  their competencies and techniques.

He gave the advice while presenting a paper on Financial Management Innovations and Sustainable Growth at the 25th Annual Conference of the Association of National Accountants of Nigeria (ANAN) in Abuja.

According to him, financial management is one of the most important aspects in business and refers to the strategic planning, organising, directing, and controlling of financial undertakings in an organisation or an institute which also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management.

“The gold standard in Financial Management is more revenue, less costs, more investments. Under these prevailing global economic conditions, the accountant has no choice than to be innovative, and technology is a Siamese twins with innovation. The place of the accountant must be at the forefront and should even be the one initiating the disruptive technologies and not just being hit by them,’’Agule said.

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He mentioned public sector finance opportunities including Extractive – oil and gas, solid minerals;  Agriculture – farming, fishing, agro-processing; Manufacturing services – financial services, utilities, communications, real estate, information technology, hospitality & leisure, tourism,

He also mentioned Quaternary sector – knowledge economy, education, research and development; Low tax regime and wide tax gap – scope for increased revenues as well as largest market in Africa – Virgin economy – enormous untapped pot.

According to Agule, the strengths of the Nigerian economy include: a virgin economy largely unexploited where any product or service well-produced and delivered is bound to locate significant market.

He said: “The options open to the Nigerian public sector for financial management innovations include: Grow the economy – translating to growth in revenues to support increased government expenditure that generates sustainable economic development; End Power cuts – Presidential intervention urgently needed at the leadership of oil and gas companies to convert gas flares into electricity.

“Monumental economic growth will result from adequate power supply to the nation; and Technology: run Nigeria with one database.’’

Agule said the 21st century post-COVID-19 financial managers could consider the following areas for innovation: Expand funding platforms – hedge funds, private equity, weather derivatives, retail structured products, exchange-traded funds, multi-family offices and Islamic bonds (Sukuk) are options to consider for financial management innovation.

He also listed Capital market – the capital market provides great options in the regime of falling money market yields, saying that there was room for creation of new securities, markets and institutions which were all worth a look into by financial managers.

According to him, Shareholder’s wealth – a goal-oriented financial management system that maximises shareholder’s wealth by paying high dividends and/or causing the market value to increase will be a beautiful bride for any capital market play to attract investors.

Agule said that financial management was at the heart of the well-being of public and private sector organisations and businesses.

By Collins Nweze

Paylink, an e-commerce platform that empowers businesses to showcase their products and services online and get paid instantly, has partnered with the University of Ibadan to sponsor the premier institution’s Small and Medium-scale Enterprise Fair (UI SME Fair) which would hold at the International Conference Centre of the university on Thursday, November 12, 2020.

This disclosure was made recently when authorities of the university announced plans for the event which, among others, would foster a robust town-gown relationship between the university and the SME community. The event also offers participating SMEs varied opportunities which include the discussion of specific business issues with SME coaches and mentors, interaction with business and product researchers as well as guidance on intellectual property protection.

Now in its second year, the UI SME Fair would further expose small and medium scale businesses to how they can better leverage digital platforms like Paylink to more easily expose their products to local and international markets, make it more convenient for customers to pay them through multiple channels, and help them better manage inventory, invoicing and revenue tracking.

“As an organisation committed to the development of the Nigerian economy, we are always ready to partner to help bring to fruition the dreams and aspirations of Nigerians, especially millions of SMEs spread across the country. This is evident in our previous partnerships with organisers of similar SME-focused initiatives like Lagos SME Bootcamp and the Social Media Week Lagos,” said David Okeme, Division Head, Vertical Markets and Payment Applications at SystemSpecs, providers of Paylink.

“It is for this reason we are glad to collaborate with the University of Ibadan on the hosting of the SME Fair especially at a time like this that the national economy needs to be rebuilt and accelerated following the slowdown occasioned by the COVID-19 pandemic,” Okeme added.

Themed “Co-create the Future”, the 2020 edition of the UI SME Fair follows the inaugural edition last year which featured hundreds of SME owners and managers, researchers, representatives of Manufacturers Association of Nigeria, financial institutions, Industrial Trust Fund and government. The event’s keynote will be delivered by the managing director of Nigeria’s Bank of Industry, Kayode Pitan.

According to a statement signed by the university’s Deputy Vice Chancellor responsible for research, innovation and strategic partnerships, Professor Olanike K. Adeyemo, the event would “showcase SMEs in order to inspire research direction/focus of the University Community” and also “establish a web-based platform (UISME-HUB) to moderate the collaborative network between the SMEs and the University of Ibadan.”

While participation is free, SMEs interested in attending and showcasing their product and service offerings at the fair can register via the website for the organisers, sme.ui.edu.ng.

The 2020 UI SME Fair would be streamed live on Paylink’s Instagram account, PaylinkNG, as part of SystemSpecs’ support for SME capacity development and digital empowerment.

Unity Bank     Plc has launched UnityCares boost lending to  individuals, businesses, manufacturers and services providers in the healthcare sector.

UnityCares is a credit scheme, which is aimed at supporting indigenous pharmaceutical companies and healthcare practitioners and other value chains businesses to provide access to loan facilities of up to N2 billion per company at five per cent interest rate.

The new UnityCare product will thus cater to improve access to affordable credits by players, reduce medical tourism and conserve foreign exchange.

It is also aimed at providing long-term, low-cost finance for healthcare infrastructural development, healthcare product manufacturing, healthcare services and pharmaceutical/medical product distribution and logistics services.

Leveraging on the Central Bank of Nigeria’s credit support intervention for the health sector, UnityCares hopes to empower as many enterprises as meet the requirements for the facility.

The main target beneficiaries of the credit scheme include healthcare product manufacturers – pharmaceutical drugs and medical equipment; healthcare service providers/medical facilities such as hospitals/clinics; diagnostic centres/laboratories; fitness and wellness centres; rehabilitation centres; dialysis centres and blood bank operators.

Others include the pharmaceutical/medical products distribution and logistics services and other human healthcare service providers as may be determined by the CBN from time to time.

To benefit from the UnityCares facility, a healthcare organisation may not need an account with Unity Bank to benefit from the on-lending scheme.

Commenting on the new UnityCares product, Divisional Head, Retail, SME & E-business, Unity Bank Plc, Mr. Olufunwa Akinmade said: “UnityCares provides an invaluable opportunity to channel funds to Nigerian-owned healthcare businesses to build and expand capacity to meet exigencies for essential healthcare products and services in the face of unravelling global pandemic.

By Collins Nweze

Guaranty Trust Bank Plc  has obtained the approval-in-principle of the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) to commence the formal process of the reorganisation of the bank  to  a financial holding company (HoldCo).

The scheme will be implemented by means of a scheme  of  arrangement  between  the  bank  and  its shareholders pursuant to the Companies and Allied Matters Act.

The bank has also obtained the “No-objection” of the Securities & Exchange Commission [the SEC) in connection with the proposed scheme.

Overview of the restructuring showed that  its issued shares will be exchanged on a one-for-one basis for the shares in a financial holding company. The bank’s existing Global Depositary Receipts (GDRs) are also proposed to be exchanged on a one-for-one basis for new GDRs to be issued by the financial holding company.

The Board of Directors of GTBank made the decision to embark on the restructuring following a comprehensive strategic evaluation of the operating and competitive environment of the Nigerian banking sector in the near term. The board expects that the financial holding company will have greater strategic flexibility to adapt to future business opportunities as well as market and regulatory changes than is currently the case.

Subject  to  the  approval  of  the  scheme  by  the  bank’s  shareholders,  the  relevant regulatory authorities and the Federal High Court of Nigeria, the holding company will have an organisational structure similar to  that used  by a significant number of major financial institutions globally.

The financial holding company will be regulated by the CBN as an Other Financial Institution and listed on the Official List of the Nigerian Stock Exchange and the London Stock Exchange (the LSE}. Concurrently, the bank will be delisted from the Official List of The NSE and the LSE, and re­registered as a private limited liability  company  under  the relevant  provisions of Nigeria ‘s corporate legislation.

GTBank will continue to be subject to the full suite of CBN banking regulations.

By Muyiwa Lucas

The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, has reaffirmed the agency’s commitment to the establishment of a strong and sustainable national fleet, saying the desire for a Nigerian shipping line was gradually being achieved.

Jamoh stated this in Lagos while receiving members of the National Fleet Implementation Committee who visited him the agency’s headquarters.

He told the team led by the Committee Chairman and Executive Secretary, Nigeria Shippers’ Council, Hassan Bello, that the need for a national carrier could not be over emphasised owing to the enormous economic benefits it offers.

According to him, “There is no better time to have a national carrier and develop the maritime industry than now, when the world is gradually looking away from fossil fuels, which currently form the mainstay of the Nigerian economy, and President Muhammadu Buhari is trying to diversify the economy from oil.

“Nigeria cannot be caught unawares; we need to look at ways of developing our shipping sector, which, from studies, is capable of earning the country even more than oil annually,” he said.

Jamoh stated that the Nigerian maritime sector had the potential to grow by between three and five per cent annually due to the size of the local market, but regretted that this capacity remained mostly untapped.

He said since the liquidation of the Nigerian National Shipping Line (NNSL) in 1995, the country had been looking for avenues to float a national carrier, though through private sector participation.

The Director-General added that the Federal Government had over the years put different measures in place to stimulate the maritime sector due to its strategic importance to the economic fortunes of the country. He emphasised the need for the country to learn from experience in order to avoid the pitfalls that ruined the NNSL.

“We need to have a sustainable national shipping line in order to avoid the reasons the NNSL was liquidated. The committee must focus on ensuring that the implementation stands the test of time,” Jamoh said.

He said the Agency’s commitment to fully and actively supporting the drive for a wholly Nigerian-owned and operated fleet was unwavering, explaining that it is one of the main pillars that NIMASA is built upon. “It is also the third leg of the tripod driving the development agenda of the current management at NIMASA,” he said.

In his remarks, Bello said the committee was at a critical stage of the national fleet implementation process, stressing that capital injection is required at this juncture to actualise the project.

According to him, “The quest for a Nigerian fleet is essential in ensuring that the country regains control of our external trade, thereby opening up the economy. This is a perfect time for Nigeria to invest in its own fleet, with global dependency on oil projected to dwindle considerably by 2030 and alternative power sources replacing fossil fuels in many countries.

“Consequently, a mono-economy, such as ours, should be diversifying into other revenue streams, with maritime being a major potential earner,” Bello said.

By Collins Nweze

Wema Bank has partnered with financial technology company Volopa to announce the launch of a new mobile money transfer service Oya App. The App was designed exclusively for the UK -based Nigerian community.

Exclusively for UK-based customers, this service allows customers in the UK to send money to friends and family in Nigeria from the comfort of their home, without having to face the hassle of commuting to and fro money transfer offices and agencies

Director at Volopa, Jay Wissema, said: “It is important to continue with the planned launch of the Oya App despite these uncertain times. Now, more than ever, when customers are advised to protect themselves and others from COVID-19, we want to make sure that they can still send money to their families and friends in Nigeria securely, quickly, and while staying safe.”

He added: “Due to the restriction in movement and business activities as a result of the lockdown in key cities as the country continues its fight against the COVID-19 pandemic, there has been an increased need for millions of Nigerians in the UK to contribute to family support in Nigeria. Using the Oya App, people in the UK are able to send money anytime from their UK bank accounts directly to a Wema bank account, without having to go out neither here nor there to access their money.”

Also, speaking about the partnership;  Head Global Trade and Correspondent banking of Wema Bank, Adeola Ajai, added “We are happy to be able to provide this great opportunity for Nigerians in the United Kingdom who can now send money to Nigeria with ease. In partnering with Volopa to launch Oya, we believe this will further entrench the transition from offline remittance to online, where the UK Nigerian community will have access to a safer, faster and low-cost transfer method”

Based on World Bank data, Reports have shown that more money is being remitted from the UK to Nigeria than to any other country, with more than £3.3Bn being remitted each year. This money is sent by the UK Nigerian community to support family and friends back home, pay bills and more, enabling a vital flow of funds into the Nigerian economy.

Traditional money transmitters and banks have long dominated this market offering inflated exchange rates, high fees and slow service, with people often having to go out and join endless queues to send money home.

Developed in collaboration with members of the Nigerian community in the United Kingdom, Oya was founded with a vision to make sending money to Nigeria faster, fairer and safer. Customers using the Oya App can send money anytime securely to a Wema bank account in Nigeria with money delivered within one minute and typically in the recipient’s account within fifteen minutes. Offering market leading exchange rates, a low fixed transfer fee and instant notifications to keep customers updated every step of the way; Oya is available for both iPhone and Android devices.

Wissema said: “We started on this journey with a simple idea that we wanted to build the best money transfer service for the Nigerian community by working together with the community. Oya is different from other money transfer offerings in that it has been developed exclusively for people of Nigerian heritage in the UK. The Nigerian community has a very strong connection to their home country and sending money is an essential part of this connection.”

He added: “Oya is the first step in Volopa’s plans to expand its remittance business to other markets targeting the US$ 689 BN global remittance sector and can be accessed at www.oyamoneytransfer.com”

By Collins Nweze

Mutual Funds are gaining wide acceptance in Nigeria’s investment climate, with savvy investors choosing the investment plan over savings,  Head of Research at Coronation Asset Management, Guy Czartoryski,  has said.

Speaking during the launch of Coronation Research: ‘The Shifting Appetite of the Nigerian Investor: From Savings to Mutual Funds’ he said that mutual funds are the next big thing in Nigerian finance and our aim is to explain why.

For instance, the  total assets under management of Nigeria’s Mutual Funds over the years 2015 to 2019 rose by 305 per cent and more than doubled in inflation-adjusted terms.

“Even in this recession-hit year the value of Money Market Funds rose by 11 per cent and the value of fixed income funds rose by 60 per cent during the first six months. Whereas banks used to be the default destination for savings, savers are increasingly turning to mutual funds,” he said.

Czartoryski said that if one had asked, 10 years ago, what was the next big thing in Nigerian finance, the correct answer would have been pension funds, because these have grown to manage in the region of Naira 10 trillion of assets. “We believe that the correct answer to the same question today is Mutual Funds. These are set to grow to rival the Pension Funds in size in the years to come. And Mutual Funds will provide Nigeria with a pool of much-needed capital,” he said.

He said the outlook for Nigerian savers and investors is undergoing a complete transformation.

“During the period between 2010 and 2019, the average Nigerian Treasury Bill yield was 14.7 per cent and this was, on average, 2.6 percentage points above the rate of inflation. Savers and investors had it easy during this period; essentially all they had to do was to invest in Treasury Bills in order to beat inflation. From the end of 2019 onwards this has no longer been the case. Savers and investors have to be a lot more subtle about what they invest in than they were before. And they have to take on a degree of risk, whether that means investing in Fixed Income Funds, Credit Solutions, Balanced Funds or Equity Funds,” he said.

He said that part of the transformation that investors are experiencing has to do with risk. When investors bought Nigerian Treasury Bills they were buying essentially risk-free investments.

“The point about Mutual Funds is that they are open to all-comers, and indeed several tech companies have created platforms that afford easy access. Of course, when the yield on a Nigerian Treasury Bill is close to 2.7 per cent and inflation is at 13.2 per cent, then it is not easy to close the gap between what is available in the market and what people would like to earn in the short term. However, there are a number of Mutual Funds available, with different product offerings and different levels of risk. It is important for people to familiarise themselves with the returns on offer and the level of risk that they are taking,” he said.

Continuing, Czartoryski said that as Mutual Funds grow they will create a growing portion of the nation’s overall savings. However, we not expect Mutual Funds to be passive investors. As we have seen, they stand in the middle between Treasury Bill returns which are low and savers’ desires for investment returns that beat inflation.