Category: Money

By Colins Nweze

Unity Bank Plc has advocated more investment in the creative industry to drive its contribution to the economy.

Its Head, Personal & SME,  Opeyemi Ojesina, make this known in Lagos at a panel to explore financing options for the music industry at the just concluded Social Media Week.

Highlighting impediments to flow of credits and investment, he stated that the music industry with the involvement of stakeholders in financial services sector needs a deliberate action plan to boost investment that will grow opportunities for entrepreneurs in the sector.

“To attract the required funding in the music industry, all the stakeholders involved must be deliberate about it. But most importantly, the people in the industry must begin to understand the business of their craft and build the necessary structure that would enable financial institutions to make an informed investment decision,’’ Ojesina said.

Read Also: Unity Bank, farmers partner to boost cashew export

Also, Head of Digital, Events & Sponsorships, Bashir Salami, said the bank will explore several financing strategies to support musicians and grow the industry.

He added: “Before the Central Bank of Nigeria (CBN) came out with the Creative Funding Initiative (CFI), the bank has supported a number of artistes to promote initiatives and projects that resonates with corporate objective of the bank,” citing the endorsement deal with Adekunle Gold in 2018 as the most significant project to enhance the bank’s contribution to the growth of the music industry.

The session was hosted by Beat FM, in partnership with Unity Bank Plc. Entitled: “Financing the music”, it had in attendance hundreds of musicians and creative industry entrepreneurs.

By Colins Nweze

 

Ecobank Nigeria has faulted the Tax Appeal Tribunal (TAT) ruling that it pays tax on the N5.54 billion divided declared by the lender in its 2015 financial year.

In a statement, the bank faulted the report released by the Federal Inland Revenue Service (FIRS) on the judgment of the TAT, saying it will appeal the ruling.

Ecobank clarified that the there is a disputed tax liability between the bank and the FIRS for the 2015 financial year.

“For purposes of clarity, the decision of the TAT was for the bank to pay excess dividend tax on the dividend sum of N5,545,000,000 declared by the bank from its 2015 financial accounts. Based on the decision  of the TAT, the excess dividend tax liability is N1,311,673,367 and not N1.6 billion,” it said.

Read Also: Tax avoidance: Ecobank ordered to pay N1.6b to FIRS

“The bank will be appealing to the Federal High Court against the decision of the TAT as it believes, based on advice from its professional consultants, that the dividend declared relates to income from sources, which are statutorily exempt from tax by virtue of the Companies Income Tax (Exemption of Bonds and Short Term Government Securities) Order, 2011. While the bank is always open to engagement, its position is based on the principle that income established to be exempt from companies income tax should not contrary to the intendment of the law, be subjected to the same tax it was intended to be exempt from,” it added.

“We abide by laws and regulations and believe that this matter should be conclusively determined in line with the applicable judicial process,” the bank said.

By Colins Nweze

The naira on Friday depreciated past N400 to dollar at the  forward market after Nigeria recorded its first case of coronavirus.

The naira was priced much weaker at N413.55 to the dollar in a year, compared with the N399.73 it traded at two weeks ago, Reuters report said.

A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are used for trading a range of instruments, especially at the foreign exchange market.

Analysts had tipped the naira to depreciate by 10 to 20 per cent in the parallel market by 2021 as the impact of falling crude oil prices and foreign exchange reserves persist.

Local and foreign analysts predicted that a decline by 10 per cent would take the naira to about N400 to dollar, while a 20 per cent drop would see it at around N450 to dollar.

According to Bloomberg survey of investors, the local currency may be marked down by up to 20 per cent in 2021.

According to the survey, the drop in foreign reserves and lower oil prices will probably force the Central Bank of Nigeria (CBN) to devalue the naira, seen as one of the world’s most stable currencies by next year.

The continued stability of the naira against the dollar has continued to spark speculations, with many analysts predicting that the local currency will sooner or later be devalued.

The Bloomberg survey of investors and analysts, showed that 10 out of 19 respondents expect the naira to be weakened in 2021, while five predict a mark-down as early as the second half of this year.

The remainder believe the CBN will keep a firm grip on the currency until 2022 or 2023.

The CBN has instituted several policies to defend the naira, including restricting importers’ access to dollars and stepping up the sale of high-yielding debt to attract inflows from portfolio investors.

The CBN has also backed the government’s closure of some land borders, designed to stop smuggling.

Most respondents say Nigeria cannot keep defending and sustaining naira’s stability beyond next year.

All but four of the survey participants said the naira is more than 10 per cent overvalued against the dollar. Two respondents said it was at least 20 per cent too strong.

The currency has traded around 360 to 365 per dollar since its last devaluation in 2017. While the CBN says the exchange rate is determined by the market, it is much less volatile than other oil currencies, such as the Russian ruble and Kazakh tenge.

The respondents were evenly split on the size of the devaluation, with nine predicting the naira will drop 10 per cent or less and the same number saying it would be marked down by 10 per cent to 20 per cent. Only one forecasted a fall of more than 20 per cent.

Most survey participants, who included money managers, analysts and economists based in Nigeria and abroad, asked for their answers to remain anonymous.

Since June, Nigeria’s reserves have decreased by 17 per cent to $37.4 billion, the lowest in more than two years. The slide has accelerated since the coronavirus outbreak in China rocked global markets and sent Brent crude prices down to around $55 a barrel. Last week, reserves in Africa’s biggest oil producer fell by $350 million, the most on a weekly basis since October.

All but three of the respondents said reserves would have to hit $30 billion before the CBN considers letting the currency fall, which is in line with what Governor Godwin Emefiele told investors last year.

Emefiele had vowed to keep the naira steady, saying in late November that the slide in reserves was not a cause for concern.

“In 2016 we had reserves as low as $23 billion and we survived,” central bank spokesman, Isaac Okorafor, said after the release of the survey. “We have proved them wrong before and we will do it again,” he told Bloomberg.

The CBN  and FMDQ OTC Securities Exchange, a Lagos-based platform that oversees naira transactions, introduced new naira futures contracts of up to five years. The aim is to attract more foreign investment by helping investors hedge their currency exposure, Tumi Sekoni,  FMDQ managing director, said.

 

 

Collins Nweze

 

The Nigerian Deposit Insurance Company (NDIC)has secured a judgement against Jolimair Nigeria Limited Jolimair Nigeria Limited and three other debtors who owed the defunct Gulf Bank Plc N1.4 billion.

In a debt recovery suit number: FHC/L/CS/1328/ 17 – NDIC (Gulf Bank) vs. Jolimair Nigeria Limited & 3 Others, the NDIC prayed the Federal High Court sitting in Ikoyi, Lagos for the recovery from the respondents of the total debt sum of N1,494,987,317.44.

The amount was due and payable by Jolimair Nigeria Limited to the Gulf Bank (inliquidation) as at January 16, T HE Nigeria Deposit Insurance Corporation (NDIC) has se2006 when the defunct bank’s licence was revoked by the Central Bank of Nigeria (CBN). The cash was for the banking facilities granted by the bank in-liquidation and guaranteed by three other respondents in the suit; Joseph Samir Karkar, Abbas Shour and Patrick Sule Uduka.

When the matter came up for judgment on January 31, 2020, the Presiding Judge, Justice Ibrahim Buba granted the reliefs sought by the NDIC for the N1.4billion debt. The judge said the respondents failed to tender any documents before the court to prove that their indebtedness to the bank in-liquidation had been settled, adding that people like them were responsible for the failure of the bank. The court also agreed with the NDIC that the respondents owed interest on the debt sum calculated from January 16, 2006 at the rate of 21 per cent per annum until the debt was fully liquidated, in addition to a cost of N500,000 awarded against the respondent.

NDIC, as the liquidator of Gulf Bank (in-liquidation), sued Jolimair Nigeria in 2017, under the Failed Banks Act to recover the outstanding sum of N1,494,987,317.44 owed to the closed bank by the respondent

Collins Nweze

 

Standard Chartered Bank of Nigeria Limited (StanChart) has entered into partnership with Educare Technology solutions limited to develop a unique education solution called EduEdge.

The three years alliance with Educare, an industry leader in school administration software, positions the bank as an industry leader connecting with a wider network of prospects as it offers a compelling value proposition to educational institutions (Primary and Secondary) in strategic locations across the country, including Lagos, Abuja and Port Harcourt.

This initiative was developed by the Business Banking segment of the bank’s Retail Banking arm with a team of seasoned professionals dedicated to providing relevant banking solutions to meet the business needs of existing and prospective clients.

Speaking at the signing, the bank’s Head of Business Banking, Ben Dike said:

“We are very excited about STANDARD Chartered Bank Nigeria Limited (StanChart) this new partnership and the potential benefits it brings to the children of our existing and prospective clients and also to all stakeholders in the educational ecosystem including schools, employees, parents and guardians. This is a 360-degree proposition that provides tangible value to the educational sector, a sector that is crucial in the development of the country’s future leaders.’’

Educare CEO, Alex Onyia added: ‘’As the best school management system in Nigeria, and a specialist in edutech industry, we are delighted to partner with Standard Chartered Bank who have a complimentary/International specialist practice in Banking and are also committed to supporting education around the globe.”

Other benefits of SC Eduedge include access to personal loans, mortgage loans, Salary advance (personal overdraft), Credit Card offering to school owners and employees and also School Fees Loans and Credit Card offerings to parents/guardians

 

 

By Colins Nweze

Stanbic IBTC Holdings Plc has continued in its efforts to support the Federal Government’s drive to achieve a 95 per cent financial inclusion rate by 2024.

The bank eaffirmed its commitment to further deepen financial inclusion in the country during the masterclass session tagged “Tech and Financial Inclusion” at the Social Media Week (SMW) Lagos. This event kicked off on  February 24, at the Landmark Centre, Lagos.

Speaking at the event, Executive Director, Personal and Business Banking, Stanbic IBTC Bank Plc, Wole Adeniyi,  said that the organization was working effortlessly to overcome the challenge of bringing the financially excluded, especially the informal sector, into financial inclusion.

He said: “Stanbic IBTC Bank Plc is driving financial inclusion through value-added services and our @ease wallet is one of the platforms we have created to reduce friction and ensure that customers get access at scale. When you open it, within two minutes, you are able to access a broad range of financial services.”

READ ALSO: Stanbic IBTC unveils new feature on its paycode

He revealed that the partnership of the parent company of Stanbic IBTC Holdings PLC, Standard Bank Group, with Founders Factory Africa (FFA) is in a bid to deepen financial inclusion in Africa. It has led to the selection and investment into five fintech startup businesses from Nigeria, Ghana, Kenya, and Uganda. The partnership is building and scaling 140 tech-based startups for global networking and partnership opportunities.”

Other panelists at the masterclass were: Nkemdilim Begho, Founder and Managing Director, Future Software Resources Limited; Femi Omogbenigun, MD/CEO, 3Line Card Management Limited and Dayo Ademola, Head of Innovation, Enhancing Financial Innovation and Access (EFInA). The session was anchored by Emmanuel Aihevba, Head, Customer Digital Channels, Stanbic IBTC Bank Plc.

By Colins Nweze

LEAP Africa, a non-profit institution, has partnered with Union Bank to organise the 2020 Social Enterprise Sustainability Programme, designed to inspire, empower and equip a new cadre of African leaders by providing the skills and tools for personal, organisational and community transformation.

Over the last seven years, LEAP Africa has been responsible for empowering and equipping young social change makers in Nigeria through the Social Innovators Programme (SIP) which is an annual fellowship that identifies, develops and supports young Nigerians who are creating social change in different communities with their social ventures or enterprises. Speaking at the workshop, Femi Taiwo, the Executive Director, LEAP Africa said: “Transformation is at the heart of what we do at LEAP Africa. We understand that we live in an increasingly innovative world, and for us to positively change the world, we need to collectively put our ideas and innovations together to solve our social problems. Hence, social innovation is a way to improve the world by providing creative solutions to social problems.

“LEAP Africa’s Social Innovators Programme is an accelerator fellowship that empowers young change makers to deliver more impact and build sustainable social enterprises. All over the world, young people are at the forefront of innovation. Empowering them with requisite skills will collectively affect the future of Africa and change the narratives.”

Every year, LEAP Africa inducts a new set of 20 young Nigerians into the Social Innovators Programme. This new set of fellows are young people who have established social enterprises that have been running for not less than 12 months in Nigeria. They are selected from various fields ranging from technology, education, health, humanity, energy, environment and agricultural sector.

Read Also: Union Bank’s recapitalisation: Supreme Court orders fresh hearing of aggrieved shareholders’ suit

Commenting on the collaboration with LEAP Africa, Head, Corporate Communications & Marketing, Union Bank, Ogochukwu Ekezie-Ekaidem said: “Union Bank is committed to championing the sustainability conversation, and we are happy to support young Nigerians who are driving positive change in Africa. Our partnership with LEAP Africa on the Social Innovators Programme is one way to elevate our efforts in this area.”

During the Enterprise Sustainability Workshop, which is the first level of engagement in the Social Innovators Programme, LEAP will bring together top level professionals from different fields to train, coach and mentor these fellows in a week-long training.

 

By Colins Nweze

First Bank of Nigeria Limited has won the Oil and Gas Banker of Year 2019 award. The award was presented to the Tier-1 lender at the Patrons’ Dinner and Industry Awards of the Nigeria International Petroleum Summit held recently at Transcorp Hilton, Abuja.

The four-day event, comprising conference and award dinner, is acclaimed to be Nigeria’s Government official platform for the petroleum industry gathering which has evolved to become Africa’s premier business and technology conference for not just oil and gas but for other industries in the economy, notably; maritime, automobile, banking and finance, power (electricity), pipelines, LNG, infrastructure, engineering and construction amongst others.

Speaking on the award, the bank’s Chief Executive Officer, Adesola Adeduntan said, “we take pride in this recognition, as it represents the nation’s identification with our leading role in promoting the growth of the oil and gas industry. We remain steadfast on being the financial partner of first choice to Nigerians and, indeed across Africa as we collectively strive towards the continued growth of the economy at large”

Read Also: First Bank to partner Osun in Mining

The event had in attendance; Adesola Adeduntan, CEO, First Bank of Nigeria Limited, represented by Mrs. Bashirat Odunewu, the Bank’s Group Executive, Energy & Infrastructure as a panelist to deliberate the topic “What are the key challenges when it comes to managing risk and generate sustainable long-term in-country value development environment”.

Other speakers in the panel were Mrs. Olayemi Anyanechi, Managing Director, Partners Sefton Fross; Bank Anthony Okoroafor, Chairman, Petroleum Technology Association of Nigeria (PETAN); Mr. Bitrus Bako Nabasu, Permanent Secretary, Ministry of Petroleum Resources; and Patrick Olinma, Executive Director, Oil & Gas Commercial, Total E&P Nigeria Ltd.