The Nation Newspaper

Category: Money

  • TAJBank announces N150b Fed Govt Sukuk Bond Issuance

    TAJBank announces N150b Fed Govt Sukuk Bond Issuance

    By Collins Nweze

     

    TAJBank, a non–Interest financial institution, has announced a N150 billion Sukuk Bond of the Federal Government.

    The founder/Chief Operating Officer TAJBank, Hamid Joda, said:  “We are delighted to be appointed as a Receiving Bank for FGN Sukuk by the Federal Government.

    This investment platform is a safe and risk-free form of investment and offers a stable, tax free, rental income stream.

    There are enormous benefits derived from regular Sukuk issuance programmes like these to the economy, as it will secure much-needed capital to boost infrastructural development spanning several sectors such as health, transportation and much more.”

    TAJBank Chief Marketing Officer, Sherif Idi, said it was important to understand the principles which guide Sukuk. “These principles are what makes this platform so attractive to investors.

    One of such attractive features is that the holder has an undivided ownership right in a particular asset and as such is entitled to the return generated by that asset.

    As such, this provides an opportunity for all to invest safely and enjoy the attractive benefits of a triple A rated ethical instrument,” he said.

    The FGN Sukuk 2020 is open to investors, which include retail investors. high networth individuals, institutional investors such as commercial banks, insurance/takaful companies, pension fund administrators, asset managers, ethically inclined investors, cooperative societies, religious bodies as well as state investment firms.

    Sukuk, also referred to as Sharia compliant bonds, is developed as an alternative to conventional bonds. It provide an alternative long-term financing for key sectors, such as infrastructure.

    Considering the state of the economy and infrastructural challenges, and as several countries grapple with the economic impact of COVID-19, Sukuk is a tool to help countries and businesses develop sources of long-term, stable financing.

    Book building commenced on May 21 while funding would be on June 2.

  • COVID-19 presents opportunity to boost African economies, says Elumelu

    COVID-19 presents opportunity to boost African economies, says Elumelu

    By Collins Nweze

    The Chairman, United Bank for Africa (UBA) Plc, Tony Elumelu, has stated that the coronavirus pandemic  presents an opportunity to reset the African Continent so that Africans can be empowered to become more productive and self reliant.

    He spoke at a roundtable made up of African leaders, including Dr. Ngozi Okonjo-Iweala, the Special Envoy of the African Union on COVID-19 and Tidjane Thiam who is also a COVID-19 Special Envoy responsible for mobilising international economic support for Africa.

    During the session entitled: Resilient World: An African call for a new world order, Elumelu stated: ”I see this pandemic as an opportunity to reset Africa.’’

    Pointing out that Africa as a continent has all it takes to emerge into a strong digital economy, the UBA Group Chairman advocated a martial plan that will galvanise the entire continent and make Africa less dependent on the ‘circularity of debt’ from developed nations, which according to him, has been a major setback for decades.

    He said: “I feel that as we engage the rest of the world in providing relief, we need to look for a more fundamental solution to Africa’s challenges. I have often argued for a martial plan overtime. We need to mobilise everyone. If we have a martial plan that mobilises resources to address particular issues, then we can mitigate against this constant begging for assistance.”

    READ ALSO: Elumelu to lead Senegal, Liberia presidents, others at UBA Africa Day forum

    Elumelu further said: “The truth is that we have resources to help mobilise people. As the founder of the Tony Elumelu Foundation, we committed to endow $100 million to support young African entrepreneurs and we have been seeing the positive results this has yielded so far.

    ‘’ It is evident that if we can fix access to electricity, ensure stability of the macro-economic environment, ensure prioritisation of the youth, empower our small and medium scale enterprises and fix youth migration, then we are in for a better and more resilient economy’. There is the urgent need to prioritise our youths and empower our SMEs. The people who work hard need to be encouraged,” Elumelu noted.

    Tidjane Thiam, who agreed with Elumelu, said rather than depend on international assistance at every point, there is the need for governments and institutions to invest in activities that will prioritise the youth and create a better enabling environment.

    “I totally agree with Tony Elumelu. The major challenge is that we do not see enough entrepreneurs,’’ said Thiam.

  • MPC postpones meeting

    MPC postpones meeting

    Collins Nweze

    The Central Bank of Nigeria (CBN) has announced the rescheduling of the May 2020 Monetary Policy Committee (MPC) meeting earlier scheduled for today and tomorrow. The committee will now meet on Thursday, May 28.

    In a statement, the CBN Director, Corporate Communications, Isaac Okorafor,  said: “This is to inform our stakeholders and the general public that the May 2020 meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), earlier scheduled for Monday and Tuesday, May 25 and 26, 2020, will now hold on Thursday, May 28, 2020. This is as a result of the declaration of Monday and Tuesday, May 25 and 26, 2020, as Eid-el Fitr holidays.”

    He said the CBN has put in place   machinery for the meeting to now hold for only one day on account of the on-going COVID-19 national lockdown and to align this meeting with extant rules of the Presidential Task Force (PTF) on COVID-19 and advisories from other relevant agencies.”

    “All inconveniences caused by these changes are regretted,” it said.

     

  • Afrinvest seeks investors for its Dollar Fund

    Afrinvest seeks investors for its Dollar Fund

    Collins Nweze

    Afrivest West Africa is seeking investors for its new Dollar Fund.

    In an emailed note to investors, Afrinvest Managing Director, Ike Chioke asked prospective investors to add the Afrinvest Dollar Fund in their investment portfolio.

    “The fund is an open-ended mutual fund which invests in dollar-denominated fixed income securities of the Nigerian government and corporate issuers.The objective of the fund is to achieve income generation and capital appreciation in the short to medium term (1-3 years),” he wrote.

    According to him, the fund was targeted at individual and institutional investors whether domiciled in Nigeria or overseas who desire exposure to dollar-denominated fixed income securities. In addition, investors with upcoming dollar obligations such as school fees, medical treatment, business and personal travel, training, etc, can use the fund as a store of value.

    “For investors with dollars liquidity sitting in the bank accounts, the fund is designed to deliver significantly higher returns than what is presently obtainable from a commercial bank. Importantly, while the minimum amount required for access into the Eurobond market is $200,000, investors can now through the fund enjoy most of the benefits of a thriving international fixed income market with as little as $1000.’’

  • FirstBank provides free-learning subscriptions to students

    FirstBank provides free-learning subscriptions to students

    Colins Nweze

    FirstBank of Nigeria Limited has announced that thousands of students have been signing up to access the e-learning solutions for free, which is provided in partnership with Roducate and Lagos State Government.

    This is in furtherance to the bank’s resolve to close the gap of the disruption in children education’s due to schools’closure, following the COVID-19 pandemic.

    The Roducate e-learning platform is structured in line with the government’s accredited curriculum for primary, secondary and tertiary schools across various fields of academic endeavours, such as science, commercial and arts.
    Also, it includes tutorial videos to reinforce the learning engagement as well as assignments and mock exam to test the students’ knowledge and progress in the course of studying. In addition, learning on the platform enables one to take notes for quick reference.

    In view of the need to foster extra-curricular activities – beyond academic pursuit – the Roducate e-learning platform is configured with exciting features to make learning exciting and fun. These features include podcasts and various games such as brain pulse, monster munch etc. which allows one to play with other students online thereby building relationships and promoting interactive learning.

    On the implementation of the initiative, FirstBank Chief Executive Officer (CEO) Dr. Adesola Adeduntan, said: “The partnership with Lagos State has seen us provide low-end devices for students preloaded with Roducate offline; content which include government accredited curriculum for primary through secondary education and several university courses. This solution will see Lagos State offer children in the lower bracket, who may not have access to devices or data from home affordable smart phones preloaded with the curriculum. The phones have SIMs and limited data tied, only, to the Roducate learning product, which means the recipients cannot browse, encouraging safe learning but can still submit tests, mock exams etc.”

    Adeduntan further noted: ‘’Our partnership offers students free online access to the education solutions. We encourage parents and guardians to have their children and wards registered in this initiative so their educational development is not held back.”

  • Polaris Bank holds webinar

    Polaris Bank holds webinar

    Polaris Bank is organising a maiden Webinar with a faculty to brainstorm on the theme: Managing Health Care Business During and Post COVID-19.

    Group Head, Products and Market Development, Mrs. Adebimpe Ihekuna explained that the bank’s intervention in the sector is informed by the glaring impact of COVID-19 outbreak on healthcare businesses, health and safety of Nigerians at large.

    Adebimpe said: “Government’s ability to effectively tackle the pandemic and other health-related issues during and post COVID-19 is hinged on resilient collaboration of stakeholders in both public and corporate Nigeria.”

    The webinar, scheduled for tomorrow from 2pm to 3.30pm, will feature some of the leading authorities in the healthcare business, as panelists. They include: Dr. Abiodun Oyenuga of Medical Credit Fund, a Dutch non-governmental organisation, Mr. Adil Shaikh of MeCure Limited, a pioneer provider of Telemedicine and Dr. Itunu Akinware of Medbury Medical Services.

    Read Also: Polaris Bank optimistic on post-COVID-19 performance

    The guest panelists will be speaking on the following topics: ‘’Overview of the pandemic and its impact on healthcare businesses with emphasis on how to manage the impact on businesses, Dos and Don’ts and Operational Management going forward; (2) Telemedicine: The possibilities, gaps, business challenges and the role of financial institutions; and (3) Testimonials from the viewpoint of a medical practitioner.”

    The Managing Director/CEO of Polaris Bank, Mr. Tokunbo Abiru, will be leading the panel alongside Mr. Segun Opeke, Directorate Head, Lagos Business, to shed light on the bank’s contribution to the sector as well as its product offerings and how customers can access health loans from the bank.

    The webinar will be moderated by Bongo Adi, an economist and Senior Faculty Member, Lagos Business School.

  • CBN sets 2022 deadline for MfBs’ N200m recapitalisation

    CBN sets 2022 deadline for MfBs’ N200m recapitalisation

    Colins Nweze

    Central Bank of Nigeria (CBN)  has set April 2022 deadline for tier-1 Microfinance  Banks (MfBs) to achieve N200 million minimum capital base.

    The announcement was contained in a CBN circular, signed by Director, Financial Policy and Regulations department, Kelvin Amugo. It said: “The Central Bank of Nigeria in consideration of the impact of the coronavirus (COVID-19) pandemic on economic activities, has revised the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MFBS) in Nigeria.”

    Consequently, the CBN has extended the deadline as follows: MFBs operating in rural, unbanked and underbanked areas (Tier 2) shall meet the N35 million capital threshold by April 2021 and N50 million by April 2022.

    According to the apex bank, MFBs operating in urban and high density banked areas (Tier 1) are expected to meet the N100 million capital threshold by April 2021 and N200 million by April 2022 while State MFBs shall increase their capital to N500 million by April 2021 and N1 billion by April 2022.

    In addition, National MFBs are expected to meet the minimum capital of N3.5 by April 2021 and N5 billion by April 2022.

    The apex bank has also approved operating licences for 15  MfBs bringing the total number of operators to 913.  The updated list of MfBs was contained in a CBN report, which indicated that before the current approvals, 898 operators had the apex bank’s recognition. All the operators were categorised by the regulator based on capital bases.

    The CBN released the revised guideline for MfBs for repositioning and to strengthen the sub-sector to support development and growth in the Nigerian economy.

    READ ALSO: CBN approves N10bn applications for healthcare intervention

    To this end, MfBs are permitted to engage in some types of deposits which include savings, time, target and demand deposits from individuals, groups, and associations, provision of credit to its customers as well as making available housing micro loans.

    The revised guidelines also avails MfBs the opportunity to provide ancillary services, like capacity building on record keeping and small businesses management, safe custody and issuance of debentures to interested parties wishing to raise funds from the public which must be approved by the CBN.

  • Keystone Bank unveils online platform for SMEs

    Keystone Bank unveils online platform for SMEs

    Collins Nweze

    Keystone Bank (Nigeria) Limited has launched an online platform to empower Small and Medium Scale Enterprises (SMEs) with knowledge to grow their businesses in the midst of the COVID-19 pandemic.

    The bank, in a statement in Lagos, said:2 “The Keystone Bank Online MSME Academy is aimed at helping SMEs cope with the operational stress of the current pandemic and will serve as an enabler for business owners to create an active online presence, digitalise their product and services, and find new ways to connect with their customers.”

    The bank’s Head of MSMEs, Helen Nwelle, said: ‘’It was no accident that Keystone Bank came up with such an initiative because the bank has always had a culture of helping SMEs grow through the provision of diverse business solutions.”

  • FCMB links entrepreneurs, experts viaTop-5-In-5

    FCMB links entrepreneurs, experts viaTop-5-In-5

    Collins Nweze

    First City Monument Bank (FCMB) has unveiled Top-5-In-5, a digital video knowledge sharing and capacity building series designed to give Small and Medium Scale Enterprises (SMEs) insight into various areas of business to inspire them to operate optimally.

    FCMB said the Top 5-in-5 initiative is one  way to add value to the SMEs.

    In a statement, the bank explained that the series would run for an initial period of seven weeks, with a new episode released weekly.

    Each episode will feature   experts across diverse areas of business who will deliver five quality tips in five minutes, to help SMEs explore solutions to specific challenges or pain-points.

    The experts include Managing Director of DCSL Corporate Services Limited, Bisi Adeyemi; Senior Partner at Verraki Partners, Kelvin Balogun; CEO/Founder Naija Startups, Aramide Abe, and  Executive Director, Business Development, FCMB, Bukola Smith.

    Other are Managing Director, CMC Connect, Yomi Badejo-Okusanya; Chief Operating Officer, TISV Digital, Omotolani Tayo-Oshikoya, and Managing Director, FCMB Asset Management, James Ilori.

  • ABCON: Forex speculators to lose funds

    ABCON: Forex speculators to lose funds

    Collins Nweze

     

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has warned its members and forex speculators putting pressure on the naira exchange rate to stop such activities or risk losing their money.

    Its President, Alhaji Aminu Gwadabe, who made this known yesterday in Lagos, said the Central Bank of Nigeria (CBN)-licenced Bureaux De Change (BDCs) would soon start full operations as the apex bank would soon reopen dollar sales to operators.

    According to Gwadabe, with the CBN’s planned lifting of moratorium on dollar sales to BDCs, reopening of the airports for air travels,  global ease on restriction of movement are positive indications that dollar flows to the economy will soon improve.

    He said the naira was yesterday evening exchanging at N461 to dollar at the parallel market but would be upbeat once dollar sales to BDCs commence.

    He said: “The return of over 5,000 BDCs to the forex market will add great strength to the  Naira and lead to major capital losses for forex speculators. It happened in 2016 and will happen again in 2020. The return of the BDCs will immediately boost Naira recovery and put the enemies of the economy to shame. We are committed to the CBN’s exchange rate stability and will take all necessary steps within set rules and regulations to keep the naira stable.’’

    Gwadabe said the return of BDCs to the forex market would help chase away speculators, curb rising inflation, boost productivity and employment, enhance price discovery, enhance market transparency and competitiveness.

    Continuing, the ABCON boss said the uptick in activities in the Chinese economy had raised the country’s crude oil demand which would impact positively on Nigeria’s crude oil sales to the Asian country and boost dollar earnings.

    Gwadabe added that the CBN has created enhanced fiscal buffers with the $3.4 billion International Monetary Fund (IMF) loan under the Rapid Financing Instrument (RFI) meant for Nigeria to meet its  urgent balance of payment stemming from the outbreak of the COVID-19 pandemic. He said the loan, which has been disbursed, will also boost Nigeria’s dollar reserves and financing to the budget for targeted and temporary spending increases.

    The loan, he added, will help in containing and mitigating the economic impact of the COVID-19 pandemic and of the sharp fall in international oil prices thereby putting the Naira in a better standing against other currencies.

    The ABCON boss said Nigeria’s foreign reserves have reached over $35 billion, which represents enough buffers for the CBN  to deal with any act of illegal economic behaviour like hoarding, speculation, conversion of local assets among other illicit financial activities.

    Gwadabe also added that the OPEC measures on sustainable price stability are commendable as many governments across the world  have agreed to oil production adjustment targets and continued collaboration   with all their partners, a move that will benefit Nigeria.

    He said the CBN has also officially reviewed  the naira exchange rate to N380 to a dollar.  Aside devaluing the naira, the apex bank also adopted a unified exchange rate, and pushed the official rate of the naira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378, all aimed at attracting Foreign Portfolio Investment and strengthening the local currency.  The BDC operators are expected to buy dollar from the CBN at N378 per dollar.

    Gwadabe said the naira rate review and assurances by the CBN Governor, Godwin Emefiele to foreign investors that want to  repatriate  their funds from the country are positive for the naira continued recovery.

    “The  apex bank has put in place policies to ensure an orderly exit for foreign investors that might be interested in doing so and has also urged investors to be patient as such repatriations are processed, owing to the bank’s policy of orderly exit of investments. The CBN has continually kept its promises to foreign investors and that confidence will play in Nigeria’s favor,” Gwadabe said.

    He said the Federal Government’s plan to revise the 2020 budget oil benchmark to $20 per barrel will make more foreign capital available for economic development and strengthening of the Naira.

    Gwadabe commended efforts by the Federal Government in curbing COVID-19 pandemic including several initiatives by the CBN meant to boost the real sector growth and attract more foreign capital to the economy.

    He assured the CBN that ABCON and its members, remained committed to supporting the regulator in realizing its exchange rate stability mandate and ensuring transparent market operations built on regulatory compliance and zero tolerance for market abuse.