The Nation Newspaper

Category: Money

  • Ecobank Digital Series: stakeholders seek more private sector participation, special Funding for education

    Ecobank Digital Series: stakeholders seek more private sector participation, special Funding for education

    By Collins Nweze

    Stakeholders in the Nigerian Education sector have advocated more private sector investment, tax concession, import duty waivers for educational equipment and government’s  special intervention funds to revamp the sector in the face of the negative impact of the COVID-19 pandemic. The stakeholders comprising public and private sector participants who spoke during the Ecobank Digital Series titled “Education in Nigeria – The role of private investment” noted that education is a critical sector that contributes to human capital development and sustainable future for the country and must therefore not be overlooked. They called on the private sector to invest more in education  in the form of corporate social responsibility (CSR), scholarships, provision of palliatives, support to reconstruction and rehabilitations of schools across the country.

    Key participants at the event included the Honourable Minister of Education, Mallam Adamu Adamu, represented by the Assistant Director & Head, PPP/NGOs, Mrs. Elizabeth Afape; The Honourable commissioner of Education, Lagos State, Mrs. Folasade Adefisayo; The Honourable commissioner of Education, Katsina State, Prof. Badamasi Lawal Charanchi; The Deputy Executive Secretary, National Universities Commission (NUC), Dr. Suleiman Ramon-Yusuf; Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf and Keynote speaker and Pro-Chancellor Achievers University, Dr. Olabode Ayorinde, and also the National President, Association for Formidable Educational Development (AFED), Mr. Orji Kanu Emmanuel amongst others.

    In his presentation, Professor Olabode Ayorinde, stressed the need for government at all levels to place high priority on the education sector when providing intervention funds, urging commercial banks to also  lend more to this sector at low interest rate. According to him,  “The private sector has played a significant role in education development. However, funding has been a major issue. A critical analysis shows inadequate infrastructure, lack of equipment and teaching aids, high teacher to student ratio, all of which requires a loan facility to solve. Regrettably, we see the government and its agencies providing intervention funds to the aviation sector, agriculture, creative sector without considering the education sector.”

    On his part, Dr. Suleiman Ramon-Yusuf, of the NUC, attributed the poor  state of the nation’s economy to the inability of the private sector in making the right impact on the education sector, noting that endowments, scholarships and bursaries would create access for schools to admit more students. He disclosed that the NUC will continue to provide an enabling environment for education and learning to thrive in the country, urging the private sector to invest more in human capital development, while limiting undue interference from the investors.

    Read Also: Ecobank promotes regional trade with virtual trade conference

    Also on the Ecobank Digital series  platform, Dr. Muda Yusuf of the LCCI, called for government’s intervention in the education sector, especially at the foundation level, maintaining that it was not easy to sustain the education sector with loans from the commercial banks because of high interest rates. He canvassed for tax concession for private investments in education, adding that “Licensing for private universities should be made easy to enable inclusiveness and a model that will include scholarships and bursary should be enacted.”

    In her contribution, Mrs. Folashade Adefisayo,  Commissioner for Education, Lagos State, said there are more private schools in the state than public schools and most of them may not survive the grueling effects of the Covid-19 pandemic.  According to her, “Land and access is the main hinderance to building of more schools in Lagos State. Currently, the government is working on synergy between the public and private sectors, reviewing and optimizing the school curriculum, improving the quality of primary education, investing in teaching aids for schools and much more.” Towing the same line Prof. Badamasi Lawal, Commissioner for Education, Katsina State, posited that “Initiatives for teachers development, public and private sector partnership, better and favorable legislation, corporate social responsibility like scholarship, bursary and tax concession would go a long way in providing the enabling environment for education sector to thrive in the country.

    Segment Head, Public Sector, Ecobank Nigeria, Mrs. Annabel Ikuenobe, stated the readiness of the bank to keep supporting the growth of the education sector in the country. She enumerated the bank’s several products and initiatives available for Ecobank customers.  According to her, one of our products to serve the education sector is the “Ecobank School Bundle. The bundle comprises of a  current account, which runs at a zero maintenance fee. We also have in place digital banking services, which include PoS, corporate card and Omnilite for easy disbursement of funds; E-billspay, to support collections and administration of the school portal, which promotes remote learning for students, receipt generation and the school’s communication management. Loans are also available for Ecobank customers.”

    Welcoming guests earlier to the Ecobank Digital Series, Carol Oyedeji, Executive Director, Commercial Bank noted that private sector participation in the education sector cannot be overemphasized. She stated that education ensures a brighter future for our generation. She enjoined all stakeholders to proffer ways forward for the sector. She noted that the Ecobank Digital Series is a virtual programme organized by Ecobank to educate and enlighten the public on crucial issues of public interest, especially as it relates to their financial freedom.

  • Capital market key to infrastructure development, say experts

    Capital market key to infrastructure development, say experts

    By Taofik Salako, Deputy Group Business Editor

    Public and private sector experts have emphasised the importance of a liquid and vibrant capital market in the nation’s quest to bridge infrastructural gap and develop critical economic structures.

    In a webinar organised by FMDQ, experts agreed that there must be public and private sector cooperation to promote the development of the debt capital market.

    Speakers and panelists, who spoke at the event, included Mr. Bola Onadele Koko, Chief Executive Officer, FMDQ Group; Mr. Bolaji Balogun, Chief Executive Officer, Chapel Hill Denham and Chair, Steering Committee, FMDQ DCMD Project, Prof. Gbolahan Elias, SAN, Principal Partner, G.Elias & Co, Mr. Wale Shonibare, Energy Financial Solutions, Policy & Regulation, African Development Group, Mr. Daniel Mueller, Head, Origination & Structuring, Infrastructure Credit Guarantee Company Limited and Engr. Chidi Izuwah Snr., Director General, Infrastructure Concession Regulatory Commission.

    Others included Dr. Farouk Aminu, Head, Investment Supervision Department, National Pension Commission, Mr. Haresh Aswani, Managing Director, Africa, Tolaram Group, and Mr. Taiwo Adeniji, Senior Director, Investments, Africa Finance Corporation. The session was moderated by Dr. Wura Abiola, Managing Director, Management Transformation Limited & Co-Chair, FMDQ DCMD Project Infrastructure Finance Sub-Committee.

    Speakers explored the critical funding gaps in the key sectors of the economy including construction, mines and steel, oil and gas, health, transportation, education and information technology sectors among others and proffered ways to leverage on domestic and foreign infrastructure financing as well as various financing models to create an enabling environment for private investments in infrastructure.

    Experts also discussed opportunities and challenges of benchmarking the debt infrastructure market, identifying the scope of de-risking tools in enhancing bankability of infrastructure projects, and government incentives and legislation reforms to unlock infrastructure development in Nigeria.

  • Stanbic IBTC seeks collaboration for education sector

    Stanbic IBTC seeks collaboration for education sector

    By Collins Nweze

    As the economy gradually reopens amid the impact of COVID-19, Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has urged vital players in the education sector to create and explore collaboration opportunities.

    Education has been one of the sectors severely hit by the coronavirus pandemic. Learning institutions have had to deliver lessons to students with varying levels of successes. However, some could not hold due to lack of infrastructure.

    A few of the gaps in the sector include requisite teachers’ training, lesson delivery, curriculum content and school infrastructure, and these provide an opportunity for collaboration.

    Executive Director, Personal and Business Banking, Stanbic IBTC Bank PLC, Remmy Osuagwu, however, urged parents and guardians to give their children the best education.

    He noted that good education without hassles is a legacy for children. He advised parents to invest in their wards’ education.

    “The COVID-19 pandemic was unprecedented, but it has reinforced the need to plan for the future of our children. Early planning helps to take the financial pressure off parents in the years to come; and in times like these, parents must ready to welcome opportunities that will amplify the value of their children’s education.

    “As a foremost financial institution that understands the importance of protecting a child’s future by saving for their education, the Stanbic IBTC Children Education Savings Scheme – CHESS account enables parents /guardians to set up and manage their child’s account just the way they want,” he said.

  • FCMB cuts interest rates on consumer loans

    FCMB cuts interest rates on consumer loans

    By Collins Nweze

    First City Monument Bank (FCMB) has reduced interest rates on  consumer loan products.

    The reduction, which took effect from August 12, applies to Salary Plus Loans, including Premium Salary Plus, Auto Loans and Home Loans, of FCMB, whether they are newly disbursed or already running loans.

    The slash of interest rates means that customers  be able to repay lower amounts  monthly and can also borrow higher amounts than previously.

    In addition to the benefits of interest rates cut, customers also have the option to restructure their consumer loans by opting for reduced tenure instead of reduced repayment amount.

    In a statement, FCMB explained that the decision to reduce the interest rates was informed by the coronavirus (COVID-19) pandemic, which has impacted negatively on personal and households income and expenditure, among others.

    The Executive Director, Retail Banking of FCMB, Mr. Olu Akanmu, said: “We realise the financial challenges confronting our customers due to the prevailing economic situation caused by COVID-19.

    ‘’As a caring and responsive bank, we are committed to give them all the support needed to ease the situation. This year alone, we have given out more than N30 billion in retail loans to over 475,000 customers. Because we have also digitised the application process for many of our loans, customers can get some loans instantly simply by applying on their mobile phone or the ATM. With the reduction in interest rates, we expect to make positive impact in more lives by giving our customers the financial support they need, when it matters most.”

  • ‘Why CAMA will continue to generate reactions’

    ‘Why CAMA will continue to generate reactions’

    By Collins Nweze

    The Companies and Allied Matters Act 2020 (CAMA 2020) took many years to come to fruition, the reactions it is generating, the founder, DataPro Group, Abimbola Adeseyoju, has said.

    He said to further open up the discourse on the implementation of CAMA 2020 by the AML/CFT Compliance Reporting Entities and Accountable Institutions in Nigeria, DataPro will hold its yearly AML/CFT lecture series on Thursday via zoom.

    On the focus of the webinar, Adeseyoju, said: ‘’Since the President signed into law the Companies and Allied Matters Act (commonly referred to as (CAMA) on August 7, 2020, our firm, DataPro, has received a lot of enquiries from members of the compliance community on the likely effects the new law will have on the fight against money laundering, terrorist financing, proliferation financing and all other criminal activities in Nigeria.

    ‘’Many practitioners are concerned with issues such as:Implications to on-boarding of Non-Profit Organisations (NPOs), Due Diligence requirements for Ultimate Beneficial Owners (UBOs), Impacts on compliance Policies, Programs, Processes and Procedures, Likely changes to be expected in KYC, CDD and EDD practices in Financial Institutions (FIs) and Designated Non-financial Institutions (DNFIs) in Nigeria and more germane issues.’’

    Adeseyoju added: ‘’Propelled by the need and desire to provide useful answers to some of these questions and enquiries as it relates to CAMA 2020, we decided to organise this platform to give stakeholders and participants the opportunity to listen to experts and policy makers within the industry to proffer the needed insights.

    ‘’That as accountable and reporting institutions comprising of Financial Institutions (FIs) and Designated Non-Financial Business & Professions (DNFBPs) and operating through digital and virtual platforms, we now serve a global community. It is, therefore, in our best interest to abide with international best practices in order to avoid being vulnerable to threats and risks both within and outside Nigeria.’’

  • We are finalising work on Audit Regulation 2020, says FRC CEO

    We are finalising work on Audit Regulation 2020, says FRC CEO

    By Collins Nweze

    The Chief Executive Officer CEO), Financial Reporting Council of Nigeria (FRSC), Daniel Asapokhai, has said it is finalising work on the Audit Regulation 2020 to improve investor confidence and ensure quality accounting standards.

    He said this during a webinar entitled: ‘’The strategic assessment of Financial Reporting Council’s draft audit regulation webinar’’.

    “Today’s exercise, which is one of the steps towards finalising the audit regulation, is strategic in the quest for the realisation of the council’s mission statement to bring utmost confidence to investors, reputation to oversight and ensure quality in accounting, auditing, actuarial, valuation and cooperate governance standards and non-financial reporting issues,” he said.

    Asapokhai, who was represented by the Deputy Director/ Head (Directorate of Accounting Standards Public Sector), Financial Reporting Council of Nigeria, Dr. Iheanyi Anyahara, said the audit regulation exposure draft was a culmination of efforts of the council which started with the setting up of Audit Regulation Working Group on October 30, 2018 comprising 14 members drawn from relevant stakeholders.

    The members, he said, were the big four audit firms; medium size audit firms; Forum of Small and Medium Size Practitioners; Office of the Auditor-General for the Federation; Nigerian Accounting Association; Attorney-General of the Federation/Minister of Justice; and Securities and Exchange Commission.

    Others were the Institute of Chartered Accountants of Nigeria; and Association of National Accountants of Nigeria.

    The draft exposure draft of the ARWG was subjected to further scrutiny by the technical and oversight committee and the governing board of the council and was being subjected to more crucial scrutiny by the entire stakeholders, he said.

  • Ecobank promotes regional trade with virtual trade conference

    Ecobank promotes regional trade with virtual trade conference

    By Collins Nweze

    Ecobank Nigeria, a member of the pan African banking Group has concluded plans to host its first Regional TradeConference.

    The virtual forum with the theme “Facilitating Regional Trade in the emerging AFCFTA era” is slated for the 22nd of September. The conference, which will feature presentations and panel discussions by highly experienced subject matter experts and thought leaders in relevant industries, will provide an opportunity for exporters and importers within Africa to engage, creating a marketplace experience.

    The Ecobank Nigeria ‘Africa Trade Conference 2020’ earlier slated for March was postponed due to the lockdown restrictions following the outbreak of the COVID-19 pandemic. Announcing the new date and movement of the conference to an online platform in line with current realities, Sunday Abah, Head, Trade Finance, Ecobank Nigeria stated that due to its unrivaled footprint across Africa, Ecobank is uniquely positioned to facilitate cross border trade within the region leveraging its comprehensive trade solutions and various payment methods available across its network within Africa.

    Read Also: Ecobank launches virtual card for online payments

    According to him, “Ecobank’s unique intra-Africa trade solutions enable settlements of international transactions and mitigation of payment risk while providing regional solutions such as issuance of payment guarantees to exporters without the need for a letter of credit and its related costs to the importer. Ecobank works closely with clients in structuring transactions, settlements, financing and risk mitigation” he noted.

    Further, he said “Our trade products and solutions are designed around two broad areas; trade finance and trade services. Trade Finance enables our customers benefit from adequate and well mitigated credit facilitation in the area of Import finance, export finance, bill discounting, trade loans, distributor finance, payables and receivables finance, structured trade and commodity finance amongst others while our trade services, offer our customers the advantage of speedy turn around and error free processing of their import letter of credits, import collections, avalised bills, Customs bonds, export collections as well as their local purchase orders and payment invoices, via our electronic trade platforms OMNI e-Trade and OMNI eFSC (electronic financial supply chain).

    The Ecobank Regional TradeConference, which will be moderated by Mr. Tedd George, the Founder and Chief Narrative Officer of Kleos Advisory, UK is privileged to have as its Special Guest of Honour, Mr. Segun Awolowo,Executive Director/ Chief Executive, Nigeria Export Promotion Council. Notable speakers and facilitators across the globe are also expected at the event.

  • Nigerian stocks beat global slowdown with N154b gain

    Nigerian stocks beat global slowdown with N154b gain

    By Taofik Salako, Deputy Group Business Editor

    Nigerian stocks continued on the upswing as increased bargain-hunting sustained an all-week bullish trading that saw the stock market closing with average return of 1.17 per cent at the weekend, the second highest gain among global advanced and emerging markets. Kenya recorded average return of 3.4 per cent.

    Trading reports at the Nigerian Stock Exchange (NSE) weekend showed market-wide buying sentiments across major sectors as investors continued to react positively to mostly steady corporate earnings in the first half of 2020. The benchmark index for Nigerian equities, the All Share Index (ASI), closed weekend with average return of 1.17 per cent, equivalent to net capital gain of N154 billion.

    Nigerian, Kenyan and Japanese stocks were the major contrarian stocks in a week dominated by bearish sentiments across major global advanced and emerging markets. In United States of America, the S & P 500 dropped by 4.1 per cent while NASDAQ Index declined by 5.9 per cent. In United Kingdom, the FTSE ASI dropped by 2.7 per cent. Germany’s XETRA DAX Index dipped by 1.6 per cent. France’s CAC 40 Index slipped by 1.0 per cent. Hong Kong’s Hang Seng Index dropped by 2.9 per cent. Russia’s RTS Index declined by 3.8 per cent. China’s Shanghai Composite Index depreciated by 1.4 per cent.

    In Africa, South Africa’s FTSE/JSE ASI dropped by 4.1 per cent. Egypt’s EGX 30 Index declined by 2.5 per cent while Ghana’s GSE Composite Index slipped by 0.4 per cent. On the positive side, Kenya’s NSE 20 Index appreciated by 3.4 per cent while Japan’s Nikkei 225 Index gained 1.4 per cent.

    Aggregate market value of all quoted equities at the NSE rose from the week’s opening value of N13.204 trillion to close weekend at N13.358 trillion. The ASI also trended upward successively from its opening index of 25,309.37 points to close weekend at 25,605.64 points.

    The momentum of activities doubled with a total turnover of 2.21 billion shares worth N10.96 billion in 18,013 deals last week as against a total of 1.07 billion shares valued at N7.38 billion traded in 16,684 deals two weeks ago.

    The construction and real estate sector was the most active sector with a turnover of 954.53 million shares valued at N681.39 million in 218 deals; representing 43.21 per cent and 6.22 per cent of the total equity turnover volume and value. The financial services sector followed with 889.89million shares worth N6.54 billion in 10,107 deals while the conglomerates sector placed third with a turnover of 209.44 million shares worth N579.99 million in 677 deals.

    The three most active stocks were UACN Property Development Company, Zenith Bank and LASACO Assurance. The three most active stocks accounted for 1.23 billion shares worth N3.24 billion in 2,148 deals, representing 55.61 per cent and 29.60 per cent of the total equity turnover volume and value.

    Also, a total of 126,119 units of Exchange Traded Products valued at N655.919 million were traded this week in 36 deals, compared with a total of 107,424 units valued at N520.31 million traded in 18 deals penultimate week.

    In the bond market, a total of 1,016 units valued at N1.1 million were traded in eight deals compared with a total of 8,285 units valued at N10.66 million traded in 15 deals two weeks ago.

    The NSE All-Share Index and Market Capitalisation appreciated by 1.17 per cent to close the week at 25,605.64 and N13.358 trillion.

    With 41 advancers against 19 decliners, all sectoral indices closed positive. The NSE 30 Index, which tracks the 30 largest stocks, posted a gain of 1.31 per cent last week. The NSE Banking Index rose by 2.76 per cent. The NSE Insurance Index appreciated by 1.96 per cent. The NSE Consumer Goods Index rose by 1.49 per cent. The NSE Oil and Gas Index led the rally with average return of 3.65 per cent while the NSE Industrial Goods Index posted a modest gain of 0.44 per cent.

    Royal Exchange led the advancers with a gain of 26.9 per cent to close at 33 kobo. Cornerstone Insurance followed with a gain of 17.86 per cent to close at 66 kobo while Union Diagnostics rose by 12.5 per cent to close at 27 kobo. On the negative side, The Initiates led the decliners with a drop of 18.57 per cent to close at 57 kobo. Lasaco Assurance dropped by 16.13 per cent to close at 26 kobo while Tripple Gee & Company declined by 12 per cent to close at 44 kobo per share.

    Analysts at Afrinvest Securities attributed the sustained rally to positive developments in the Nigerian foreign exchange market, better-than-expected corporates earnings and improved economic activities.

     

    “While we expect the soft gains in the domestic market to be sustained, we note that investors are likely to pocket gains in the week ahead. Also, the resumption of foreign exchange sales could provide foreign investors the long-waited opportunity to sell their stakes and limit exposure. Thus, we anticipate a mixed performance in the coming week,” Afrinvest Securities traded.

    Analysts at Cordros Securities remained cautious citing combined risks of increasing number of COVID-19 cases in Nigeria and weak economic conditions. “Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks,” Cordros Securities stated.

     

     

  • AIICO Insurance floats N3.49 billion rights

    AIICO Insurance floats N3.49 billion rights

     

     

    AIICO Insurance Plc has opened application list for acceptance of new shares by existing shareholders as the insurance company seeks to raise N3.49 from its shareholders.

    AIICO Insurance is offering 4.36 billion ordinary shares of 50 kobo each at 80 kobo per share. The rights issue has been pre-allotted on the basis of five new ordinary shares of 50 kobo each for every 13 ordinary shares of 50 kobo each held by shareholders as at the close of business on June 15, 2020.

    Acceptance list for the N3.49 billion rights issue opened  last Wednesday and will run till October 7, 2020.

    The Board of Directors of AIICO Insurance had earlier recommended a scrip dividend that will see the insurance company distributing one ordinary share as bonus share for every five ordinary held by the shareholders as at Thursday, June 25.

    AIICO Insurance had earlier  consummated a capital injection that saw new strategic investors acquiring 38.83 per cent equity stake in the company. The acquisitions were done through a private placement.

    Read Also: ‘Why AIICO Insurance is divesting’

     

    AIICO Insurance offered 4.4 billion ordinary shares of 50 kobo each at N1.20 per share to raise N5.28 billion. The additional shares issued under the private placement increased AIICO Insurance’s issued share capital from 6.93 billion ordinary shares of 50 kobo each to 11.33 billion ordinary shares of 50 kobo each.

    Shareholders of AIICO Insurance had at the Annual General Meeting (AGM) in 2016 authorised the board of directors to raise new capital to bolster the operations of the insurance company. The new equity fund will boost the capital base of AIICO Insurance as the Nigerian insurance industry seeks to meet new minimum capital base for various insurance functions.

    Insurance companies are in a hot race to raise new equity capital to meet new minimum capital requirements for various insurance functions as directed by the National Insurance Commission (NAICOM). NAICOM had in May 2019 released new capital requirements for insurance businesses with a 13-month compliance period for operators to shore up their minimum capital base to the required level.

    The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.

     

  • Rebound in manufacturing index continued in August

    The recovery in the  private sector gathered momentum in August as demand improved following the easing of restrictions related to the coronavirus disease 2019 (COVID-19), Nigeria Purchasing Managers’ Index (PMI), a property of Stanbic IBTC Bank PLC has shown.

    Output and new orders rebounded, rising sharply from July. Employment was stable, although excess capacity remained as a result of the severe declines in new business during the second quarter.

    Currency weakness led to another record increase in purchase costs, in turn feeding through to a rise in selling prices unprecedented since the survey began in January 2014.

    The  headline  figure  derived from the survey  is  the Nigeria Purchasing Managers’ Index (PMI), a property of Stanbic IBTC Bank PLC.

    Readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show a deterioration.

    The headline PMI rose sharply in August to 54.6, up from 50.4 in July. The reading signalled a marked improvement in business conditions, following a return to growth in the previous month.

    The rebound in new orders continued midway through the third quarter as client demand strengthened following the easing of COVID-19 restrictions. New business increased for the second month running, and to the greatest extent since January.

    A similar picture was evident with regards to business activity, which rose at a substantial pace that was much stronger than seen in the previous month.

    Despite strong rises in workloads during August, data suggested that the steep contractions seen during the second quarter left residual spare capacity.

    Companies were therefore able to continue depleting backlogs of work while leaving staffing levels broadly unchanged. The stability of employment did bring a four-month sequence of job cuts to an end, however.

    Spare capacity was also reported at suppliers. This, alongside relatively quiet road conditions, meant that vendors were able to speed up deliveries in spite of       a marked increase in purchasing activity. Stocks of purchases meanwhile rose sharply for the second month running.

    Overall input cost inflation quickened to a fresh series record in August, despite a reduction in  staff  costs.  The rise in overall input prices was driven by a record increase in purchase costs, in turn largely the result of currency weakness. In response to higher raw material prices, companies raised their own charges. As was the case with input costs, the increase in selling prices was the quickest since the survey began.

    Subdued business sentiment was registered  again  amid concerns around the lasting impact of COVID-19.