Category: Money

  • Flutterwave closes $35m Series B deal with Greycroft, eVentures

    By Collins Nweze

    Flutterwave, a Nigerian payments technology firm, has closed a $35 million Series B deal with a consortium of strategic investors.

    The round was co-led by Greycroft & eVentures with additional participation from CRE Venture Capital, WorldPay FIS, Visa, Green Visor and Endeavour.

    Flutterwave connects Africa to the world at large by providing the easiest and most reliable payment solutions for businesses around the globe. To date, Flutterwave has processed 100 million transactions worth over $5.4 billion globally for clients,  including Uber and Booking.com.

    “We are helping businesses in Africa and globally accept payment and to scale by being the payment technology that connects Africa to the world,” says Flutterwave founder and CEO, Olugbenga Agboola.

    Read Also: ‘High level of corporate governance key to attracting investors’

    “We have built a technology infrastructure that is steadily being recognised as the bridge to connect the payment system. We are excited to be working with our newest commercial partners, Visa and FIS, and investors to build the dominant payments platform in Africa,” he said.

    With the latest round of funding, Flutterwave will continue to provide innovative solutions to businesses that want to facilitate payments seamlessly. The company’s core offering provides a frictionless payment solution for merchants, banks, and consumers and simplifies how payments are made and accepted.

    The new funding will be used to support its expansion across Francophone and North Africa as part of its mission to connect Africa to the world as well as drive efforts to boost market share in existing markets.

    On the back of the latest round of funding, Flutterwave has signed commercial agreements with Visa and FIS. The agreement with FIS will allow the global financial technology provider to offer the Flutterwave solution as part of Worldpay from FIS payment solutions to its merchant clients in Africa. Flutterwave is a 2016 graduate of the FIS FinTech Accelerator program.

    Also, the company’s new partnership with Visa aims to scale its consumer payments service, Barter, through Visa’s QR code payments, card issuance, and global payment processing channels – enabling efficient service delivery to over 85,000 businesses already using Flutterwave and rapidly growing Barter’s base users.

    The partnership increases access to digital commerce for African consumers and connects them to the rest of the world with Visa virtual card.

  • KPMG report: FirstBank reinforces retail banking dominance, creates 150,000 indirect jobs

    The unbanked and underbanked, two groups at the centre of retail banking, need to be captured for the financial system to achieve its full potential. The KPMG Nigeria Banking Industry Customer Experience Survey says customers have expectations about how their needs will be met and meeting this requires banks deploying the right network and technology. FirstBank of Nigeria Limited has through its Firstmonie Agent Banking Network created over 150,000 indirect jobs for Nigerians and executed three million transactions via 45,000 agents, writes COLLINS NWEZE.

     

    Banking is no longer where you operate, but what you do. And doing more in today’s banking world requires the right tool, network and technology. Capturing the retail segment of the sector requires the right technology and product. The KPMG Nigeria has for the 13th consecutive year released the Banking Industry Customer Experience Survey, which showed banks playing formidable roles in the retail segment of the market. The retail segment of the report showed that FirstBank scored 71.8 per cent, an improvement from 65 per cent score in the 2018 survey.

    The KPMG report showed that 53 per cent of retail customers considered quality of service experience in choosing their bank, 13 per cent chosen their bank based on financial stability while 12 per cent chose their bank based on image and reputation.

    For FirstBank of Nigeria, achieving these milestones did not come by chance. It took several decades of investment in the right technology, product and quality leadership.

    As the oldest financial institution in the country, founded in 1894, FirstBank has over 28,000 Automated Teller Machines (ATMs), launched the first cash deposit ATM in Nigeria in 2011, has appointed over 45,000 FirstMonie Agents spread across the country , targeting 500,000 agents and operates in over 750 business locations. The bank has also created over 150,000 indirect jobs through the FirstMonie Agents scheme as at December 31, 2019.

    Also, the bank’s alternative channels were the first to launch WhatsApp banking, among other milestones. Achieving the 80 per cent financial inclusion target set by the Central Bank of Nigeria (CBN) will require the support of commercial banks and use of technology. First Bank of Nigeria is one of the financial institutions which have taken steps to make the target a reality by deploying technology in its operations by way of Agent Banking Network. FirstBank has expressed its commitment to continue to drive financial inclusion through its First-monie Agent Network in 99 per cent of the 774 local government areas and has processed over N2 trillion through the initiative.

    The Firstmonie service provides financial/banking solutions to rural and semi-urban locations across the country. Such solutions include account opening, cash deposit, cash withdrawals, airtime purchase, and bill payments. Through this channel, the bank is committed to providing convenient services that engender and provides ease of access to banking products, thereby saving time and travel costs for users of the network. Speaking at the Firstmonie Agent Banking National Awards in Lagos, FirstBank’s Chief Executive Officer, Adesola Adeduntan said: “The initiative has witnessed several changes in the operating structure and value proposition of FirstBank.

    In December 2017, the bank ran a pilot test with over 400,000 transactions processed and following the success of the first run, it re-launched in 2018.”

    According to Adeduntan, through Firstmonie, the bank has remained at the forefront of driving nation-wide inclusion, given our belief that access to financial services is part of lifting people out of poverty and fostering collective national economic development.

    Adeduntan said: “The key strength of the bank’s services is to look at the gaps in the society and develop products and services that address the gap. As an integral part of our strategy, we believe in working with the CBN to improve financial inclusion index of the country. We would, at FirstBank, assist Nigeria to address poverty and hunger, thereby promoting security of life and property. Because when people are gainfully employed, the implication is that they will think less of crime.”

    The bank’s Deputy Managing Director, Francis Shobo, noted that the agents are the most critical part of the ecosystem because they take deposits, make payments and open accounts, provide transfers and sell airtime at locations with little or no access to financial services. He said there are switches and the Nigeria Inter-bank Settlement System (NIBSS) has also supported the Firstmonie network. Shobo praised the CBN Governor Godwin Emefiele, stating that the the apex bank has made changes in regulation around agency banking. “They have allowed the programme to scale as much as it has scaled,” he said. At the event, 31 agents at the state level won N250,000 each, five agents N1 million each at the regional level and a grand prize of N2.5 million at the national level.

    FirstBank Group Head, Marketing and Corporate Communications, Folake Ani-Mumuney, said the bank has, through the First-monie initiative, empowered communities by connecting them to the financial system. She said the bank will continue to support Firstmonie agents. She said customers’ expectations were changing and that it’s the bank’s duty as a customer-focused bank to ensure that customers were provided with the means to carry out banking through any channel they desire. FirstBank has also recognised the opportunities for inclusive growth and influence of financial technology not just in banking but also business operations across industries.

    One of the Firstmonie agents said: “I have been with Firstmonie since they started and I can say that it has been a life-changing experience. I have been able to build trust of the communities around me as many workers in my area have forgotten the last time they visited any bank branch for basic banking services. I am a proud employer and as a result, my members of staff are well paid and comfortable.

    “FirstBank’s Firstmonie has created an enabling opportunity for dwellers of my immediate community and neighbouring towns to carry out banking transactions with less time, money, resources and risks as people don’t have to waste time embarking on long journeys to the city, added to the dangers of being robbed on the highway.’’ FirstBank has also partnered National Union of Road Transport Workers (NURTW). The deal seeks to leverage the human traffic and commercial activities at various motor parks across the country to ease access to financial services. FirstBank is also in partnership with Azuri Technologies Limited, an off-grid power distribution firm to make access to off-grid power easy, especially in rural communities, as well as other institutions, that seek to provide resources to cushion the effects of economic and social shocks on low income individuals. Under this deal, FirstBank and Azuri will co-brand and co-market Azuri’s solar home television product.

    The pay-as-you-go customers will also pay for their solar photovoltaic (PV) system via FirstBank’s Firstmonie agents and mobile payment solution, thereby deepening financial inclusion. Banking with Technology Banking and technology are becoming inseparable. FirstBank under Adeduntan is driving growth and customer services with technology. The Financial Technology (Fintech) Summit organised by the bank was an opportunity for the bank to emphasise the need for technology in e-business, digital offering, agent banking, wholesale/ transaction banking, retail/consumer lending and Small and Medium Enterprises (SMEs) productivity. He noted that as a Tier-1 lender, which celebrated its 125th anniversary last March, the bank had been able to maintain its leadership position in the industry by leveraging technology to offer innovative solutions through its product offerings.

    FirstBank is also taking advantage of the opportunities created by cash-less banking to innovate and give value to customers. The bank has introduced the Visa Multi Currency Card, an All-in One-Card and first of its kind to be offered by any financial institution in Nigeria. This card can be linked to four currencies: Naira, United States dollar, Euro and British Pounds Sterling accounts. With the Visa Multi-Currency card, FirstBank customers – within and outside Nigeria – can enjoy the luxury of having their local and foreign denominated accounts in any currency, linked to a single debit card.

    Many banks have continued to make impact in the e-payment space.The Nigeria Postal Service and Fidelity Bank Plc have also entered into a collaboration to deploy modern banking services to Nigerians in 266 rural communities. The move is part of the measures to boost the level of financial inclusion in the country and reduce the number of those not yet in the formal financial system. Speaking at the launch of integrated banking services between Fidelity bank and NIPOST in Abuja, the bank said the collaboration would enable the bank to deploy all its banking services in 266 locations using NIPOST offices.

    Access Bank Plc has introduced agency banking to deepen financial inclusion in Nigeria, to enable branches to focus more on complex customer obligations. A banking agent is defined as an authorised third party (a retail or postal outlet) contracted by a financial institution to process clients‘ transactions. The Head, Agency Banking, Access Bank, Michael Ogbaa, while introducing the bank’s Omni-channel agency banking application at the bank’s agency banking forum, in Lagos, on Tuesday decried that there are only 307,000 PoS terminals in Nigeria as at last July, of which only 167,000 are active.

    Also, the adoption of e-transactions for customers earned Guaranty Trust Bank (GTBank), United Bank of Africa (UBA), and other eight banks N135.15 billion between January and September, last year. A look at the unaudited 2019 third-quarter reports of the banks, showed that their revenue from electronic transactions grew by 57 per cent as against the N86.312 billion they earned from the first 10 months of 2018.

  • UBA Connect to deepen intra-African trade

    Collins Nweze

     

    UNITED Bank for Africa (UBA) Plc has announced the   launch of a flagship product UBA Connect. The service enables customers of the bank to conduct traditional banking transactions at any UBA branch in the 20 African countries where the bank operates.

    The service, which is available to customers and non-customers, is expected to encourage intra-Africa trade, as cash withdrawal can now be done in local currencies within the continent while deposits can also be made at any location regardless of where the account is domiciled.

    The Chief Executive Officer, UBA Group, Mr. Oliver Alawuba, who spoke about the product, said: “Africa stands to benefit substantially from intra-Africa trade, which is facilitated by the easy flow of capital within the continent. As a bank committed to creating superior value for all its stakeholders, we are focused on ensuring that we continue to contribute significantly to the development of Africa by improving accessibility and trade with UBA Connect, among other innovative services.”

    Read Also: UBA supports creative industry with REDTV’s series

    He explained that the new offering allows easy transfers to UBA accounts across African countries as well as cash deposit into UBA accounts at any of the bank’s locations in Africa, adding that the cash will be dispensed to customers in local currencies at competitive exchange rates.

    Group Head, Marketing, Mrs. Dupe Olusola, said: “We’re thrilled to be able to offer our customers the ease and convenience of UBA Connect. This is in addition to an array of digital platforms which have made banking seamless for more than 12 million people who have trusted us with their money.’’

    To use the service at any UBA business location in Africa, a UBA Connect Send, Receive or Transfer form needs to be completed, with valid identification (International passport with valid visa or migration stamp, in the case of ECOWAS member countries).

     

     

  • Fidelity Bank presents prizes to promo winners

    Collins Nweze

     

    FIDELITY Bank Plc on Monday gave out cash and gift prizes to winners in its ongoing Get Alert in Millions (GAIM) promo Season 4  promo held in Lagos.

    Two customers, Omolade Olatawura and Isabella Chekwube received N1 million each.

    At the prize presentation held at the Ska Tinubu branch of the bank, Victoria Island, Lagos, Managing Director/CEO, Nnamdi Okonkwo, noted it is the bank’s ninth promo in 13 years.

    Okonkwo, represented the Executive Director, Shared Services and Products, Chijioke Ugochukwu, added that the bank is improving people’s living standard.

    Thirteen  customers of  the bank last week, emerged millionaires in the third monthly draw of the GAIM promo Season 4 in Lagos.

    The bank also rewarded loyal customers with prizes worth N16 million in the categories of N2 million and N1 million. The bank presented consolation prizes in form of fridges, television sets and power generating sets to winners who were happy with the gesture.

    The presentation  was witnessed by the relevant regulatory bodies, including the National Lottery Regulatory Commission (NLRC), Lagos State Lotteries Board (LSLB) and Consumer Protection Council (CPC).

    They include Dare Abiodun Emmanuel; Ugwu Philomena Nneka; Chinenye Catherine Olunna; Egberi Agbarha Kelvin; Ivang Stanley Oham; Chinelo Loveth Egbuchunem; Dare Abiodun Emmanuel; Itabiyi Gbolahan Olakunle Hassan & Adejoke Jokotade; Larei Chindo; Chigozie Darlington Emoka; Khadijah Umar; Muazzam Ad Maizare; Isabella Chekwube Uche; and Omolade Bamitale Olatawura.

    Others are Joseph James Abah; Oghenetega Emmanuel Erus; Blessing Chidinma Okafor; Loveline Uche Okonkwo; Nafisat Ali Lawal; Comfort Ita Asuquo; Mohammed Halima Sadiya, among others.

    The Regional Bank Head, Victoria Island branch, Chinwe Iloghalu, said: “We have had the GAIM promo for 13 years and we are already creating millionaires in 2020 and this is such a big win for Fidelity Bank. The objective of this promo is to deepen the savings culture and improve domestic businesses and so far we will always remain that bank that keeps to its word.”

    Shedding light on how customers could qualify for the draw, Head, Savings Group, Fidelity Bank, Janet Nnabuko, stated that existing and new customers could win by topping their account with N10,000 or opening a new account and building it up to N20,000.

     

  • NBS names top lenders in capital import

    By Collins Nweze

    Ecobank Nigeria and Standard Chartered Bank have joined Stanbic IBTC Bank to become foreign investors’ favourites for investment deals, says National Bureau of Statistics (NBS).

    Details of the Bureau report showed that out of 26 banks foreign investors used to deploy foreign capital, the most investment came through Stanbic IBTC Bank, which attracted $1.63 billion worth of investment in the third quarter of last year, lower than $1.76 billion it had in the previous quarter.

    Ecobank followed with $754.38 million worth of foreign investment, while Standard Chartered Bank, a wholly-owned subsidiary of UK-based Standard Chartered Bank occupied the third position by attracting $502.47 million inflows.

    Access Bank got $477.55 million; Rand Merchant Bank, $430.15 million; Citibank Nigeria Limited; $350.95 million; while First Bank of Nigeria had $307.94 million.

    According to NBS, while the total value of capital importation into the economy fell by 7.78 percent to $5.36 billion in the third quarter of 2019 from the previous quarter, Ecobank attracted $754.38 million worth of foreign investment, representing 55.41 percent more capital thus making the bank foreign investors’ favourites for investment deals.

    Country Treasurer, Ecobank Nigeria, Adetokunbo Uko, said the bank was leveraging its pan-African strategy to attract capital to the nation’s economy, stressing that the bank remains committed to increasing capital flows to Nigerian financial market.

    “As a gateway to the African market for foreign direct and portfolio investments, Ecobank Nigeria is  leveraging its Pan-African platform, people and products to contribute to the financial and economic development of Nigeria through provisions of foreign exchange solutions and fixed income products to local and foreign customers.

    “We remain committed to our African strategy, to increase capital flows to Nigerian financial market through enhanced product offerings, good customer experience and transparency in all transactions,” he said.

    She restated the bank’s commitment  to redouble its efforts on all fronts to remain foreign investors’ favourite for investment deals and also claim its rightful position in the industry.

  • UBA supports creative industry with REDTV’s series

    By Collins Nweze

    REDTV, the lifestyle platform powered by the United Bank for Africa (UBA), has launched its new series titled, Assistant Madams.

    According to its creators, The Men’s Club, REDTV has been providing opportunities for youths in the creative industry in Africa.

    The crème de la crème of the entertainment industry gathered at Ebony Life Place,  Lagos to watch the premiere of Assistant madams.

    The story revolves around the life of three aspiring female Lagos socialites and their journey to ‘big girl’ status.

    REDTV Executive Producer, Bola Atta, said: ”REDTV was birthed by the United Bank for Africa, to support the creative industry in Nigeria and also across the African Continent. For about four years, we have been creating employment through entertainment. The potential revenue that can be generated in this industry is often under estimated and it is only in recent times that more people have had the courage to leave traditional professions and embrace the creatives. We want to encourage talented and creative professionals to pursue their dreams and to confidently feel that they are contributing to economic growth.

    ‘’The vision of UBA is to support entrepreneurship across Africa and through REDTV, the bank is connecting African talent to the world. REDTV will continue to harness these talents and to provide opportunities for those who wish to pursue careers in the creative industry.’’

    Co-producers/directors, Tola Odunsi and Akins Akinkugbe, expressed their delight at the reception which the new series is receiving. They said: ’’We are pleased to partner UBA and REDTV to create top quality content and jobs. Assistant madams alone employed over 120 people during the filming of the series and this is significant.’’

    At the event were Chris Ubosi, Mo Abudu, veteran photographer Kelechi Amadi Obi, Sola Sobowole, Patrick Doyle, Noble Igwe, Juliet Ibrahim, Toke Makinwa, Uru Eke, Obi Asika, Koye Sowemimo, Debola Williams, Sharon Ooja, Bollylomo,  Funke Babs Kufreji, Obi Asika, Bisola Aiyeola, Osas Ighodaro, Tana Adelana, Sophie Alakija, Taymesan Emmanuel, Ayo Ayoola, Efa Iwara, among others.

  • Standard Bank sponsors UK-Africa investment summit

    By Collins Nweze

    Standard Bank, Africa’s largest banking group by assets, is partnering the UK Government to sponsor the inaugural UK-Africa Investment Summit, which holds in London today.

    The event will create new lasting partnerships between UK and African businesses, governments and institutions to deliver more investment, jobs and growth. These partnerships will benefit people and businesses across Africa and the UK.

    Hosted by the Prime Minister, the summit will bring together UK and African businesses, African leaders and delegations, international institutions and young entrepreneurs.

    The summit will cover topics including: Trade and investment, infrastructure development, sustainable finance, the role of the City of London in attracting African businesses to raise capital, clean energy, women’s economic empowerment and creating jobs for young people across the continent.

    Commenting on the sponsorship, Sola David-Borha, Chief Executive, Africa Regions, Standard Bank, said: “We are proud to be a sponsor of this prestigious and important summit. Africa is home to many fast-growing economies and businesses, and it is very positive to see the recognition of the huge potential for UK companies and investors. Furthermore, improving socio-economic ties between the UK and Africa can only be mutually beneficial. There are an increasing number of African businesses and governments looking to the UK, and the City of London in particular, to access capital, as well as investment and commercial expertise across different sectors.

    “British investors and businesses are increasingly recognising Africa’s potential and the role they can play in boosting the continent’s long-term growth – particularly through investments that have positive social, economic and environmental impacts. This well-timed summit will help to build significant and long-lasting commercial ties between the UK and Africa.”

    Sola David-Borha will participate in a panel on Sustainable Finance and will be meeting British and African leaders across business, politics and other institutions.

    International Development Secretary Alok Sharma visited Africa ahead of the summit.

    Sharma said ahead of his visit: “Africa has eight of the 15 fastest growing economies in the world but currently receives less than four per cent of foreign direct investment. There are fantastic opportunities for UK businesses to work alongside, invest in and partner with African nations.

    “At the UK-Africa Investment Summit in London on January 20, we will bring together UK and African businesses, African leaders, international institutions and young entrepreneurs to drive the investment Africa needs to flourish. I look forward to seeing many of you there.”

  • Why inflation may rise further, by analysts

    By Collins Nweze

    Economists at Financial Derivative Company (FDC) have said the country will experience a rise in the inflation rate and a further decline in its foreign exchange reserves as the government juggles various  options to steady the economy on the path of growth in the year.

    Nigeria’s inflation rate increased, for the fourth  month, to 11.98 percent in December of 2019 from 11.85 percent in the previous month. The November rate was the highest rate since May 2018.

    The FDC  monthly economic outlook  said the hike in the Value Added Tax (VAT) rate to 7.5 percent from five per cent in spite of the increase in the minimum wage would have a knock-on effect on consumer disposable income.

    “The wage increase and higher VAT will exacerbate inflationary pressures. Inflation has increased consecutively since September 2019 and an increase in consumer price inflation is imminent,” the company wrote in its economic outlook.

    FDC warned that any increase in inflation rate in January could trigger the beginning of a tightening cycle by the Central Bank of Nigeria (CBN) and the subsequent increase in the benchmark interest rate.

    “If the higher VAT leads to a spike in inflation in January, the MPC would be left with no alternative but to commence a tightening cycle and raise the MPR,” economists in the company said.

    Consumer inflation rose to 11.85 percent in November from 11.61 percent in October due to the impact of the closure of land borders by the government and uptick in the prices of food items.

    Last Monday, President Mohammadu Buhari signed into law the new Finance Act, which increased VAT rate from five percent to 7.5 percent.

    The company also predicted further drop in the country’s external reserves, saying the forex buffer could drop below $37 billion mark, while the local currency is seen coming under pressure, as a result, rising demand at the domestic forex market.

    “We expect external sector vulnerabilities to persist in January. External reserves will continue its steady decline (could fall below $37b) and naira could come under pressure due to increased demand at the forex market for international school fees payment.”

    The nation’s external reserves, which peaked at $45.09 by July 17, last year, have fallen significantly to around $38.32 billion by January 14, 2020.

  • CBN sets new rules to improve PoS deployment, usage

    By Collins Nweze

    The Central Bank of Nigeria (CBN) is taking steps meant to get more people embrace e-payment channels, especially Point of Sale (PoS) machine.

    The Nigeria Interbank Settlement System (NIBSS)  data showed the total volumes of PoS transactions for 2017 stood at 146.3 million, which was worth N1.4 trillion; 285.9 million transactions in 2018 worth N2.3 trillion and 187.7 million for six months-January to June 2019 worth N1.4 trillion.

    The apex bank has, therefore, reviewed the messaging format for PoS machine transactions to ensure more acceptance for the e-payment channel.

    A statement signed by CBN Director, Payment System Management Department,  Musa Jimoh, said the move was part of its commitment to facilitate the development of the payment system and deepen the adoption of various electronic payment options available to users.

    The apex bank has also identified the predominant use of single messaging format for PoS transactions as an obstacle to the use of pre-authorisation as a mode of payment in Nigeria.

    According to the apex bank, merchant acquirers are required to obtain Acquirer Device Validation certification or the applicable testing completion notification from the CBN licensed card schemes.

    “By this directive, all PoS terminal must have the capability for transaction pre-authorisation and sales completion. All card issuers are required to build the capability and enable the processes for pre-authorisation and sales-completion of transactions. Card schemes are also required to provide online simulators for acquirers and issuers to test their systems, when necessary,” the circular said.

    This circular takes immediate effect, but with a deadline of July 31, for full compliance, after which appropriate sanctions would be imposed for contraventions and non-compliance.

  • Nigeria’s booming market for hypertension care

    The global direct medical costs of treating and managing hypertension are estimated at $370 billion yearly, according to Journal of Clinical Hypertension. Nigeria, with a population of over 180 million and a high prevalence of hypertension, contributes to the cost of managing this health challenge. However, while this has imposed a huge financial burden on hypertensive patients, the local market for hypertension drugs has literarily become a theatre of war for drug manufacturers and other care providers struggling for market dominance. DANIEL ESSIET reports.

     

    That hypertension is a major threat to the well-being of people in sub-Saharan Africa (SSA) is not in doubt. Hypertension, otherwise known as high blood pressure, is a chronic medical condition in which the blood pressure in the arteries is elevated, with the World Health Organisation (WHO) estimating that the prevalence of hypertension is highest in the African region.

    The WHO said, for instance, that about 46 per cent of adults in Africa aged 25 and older are hypertensive. The Pan-African Society of Cardiology (PASCAR) also lent its voice to the disturbing menace of the health challenge, identifying hypertension as the highest area of priority for action to reduce heart disease and stroke on the African continent.

    Sadly, the prevalence of hypertension in Nigeria, according to experts, is high. For instance, a report published by Research Gate said there are about 20.8 million cases of hypertension in Nigeria among people aged at least 20. The report also projected an increase to 39.1 million cases of hypertension among people aged at least 20 years by 2030, if nothing is done to reverse the trend.

    According to the report, which was accessed by The Nation, Nigeria’s rapidly aging and urbanising population is enjoying higher standards of living, which are often accompanied by obesity and, as a result, cardiovascular disease. Consequently, there is increasing rate of hypertension across the country, requiring urgent measures to stem the tide.

    Indeed, experts say that the consumption of junk foods, lack of proper, healthy and balanced diet and lack of proper sleep, due to irregular work shifts, are major drivers for prevalence of the disease in Nigeria and by extension, the thriving anti-hypertensive drugs market.

    However, by far, the most common treatment of hypertension is through special drugs. The remarkable success of a few recent launches has demonstrated the true potential of patented products

    Some organisations and their international partners have stepped up the development of a variety of tools to reduce the high incidence of hypertension; some herbal providers are also deploying medicinal plants in the treatment and management of the problem.

    The burgeoning industry, according to experts, needs lower-cost alternatives for desperately needed medications, and production should be on the rise. Of late, there has been rise in use of combination therapies for the treatment of hypertension.

    Experts say that the use of combinations of drugs (Combination Therapy) allows for action on several different hypertensive mechanisms. However, as in so many other sectors, the rise of digital technology is reshaping the market.

    Companies are using digital technology to simplify processes, enhance quality of care and prevention in the community, and empower patients.

    Unsurprisingly, many hypertension drug manufacturers, therapists and caregivers have lined up to take advantage of the increasing number of hypertension patients in Nigeria to push their drugs and others solutions into the market. With so many hypertensive patients, the country’s anti-hypertensive drug market is booming.

    The drug merchants, who are mostly private sector players, are encouraged by Nigeria’s large, rapidly growing market for hypertension, which includes research, discovery, testing, medical devices, and manufacturing of medicines and therapeutics that cure hypertension and improve patient’s health.

    The Nation learnt that from local and multinational pharmaceutical companies to herbal providers, the competition for the provision of bespoke solutions for the treatment and management of hypertension in Nigeria has gained increased momentum. Companies manufacturing hypertension drugs are consolidating. Some of them are said to be partnering and manufacturing their own drugs in response to shortages and high prices.

    The government is also encouraging local companies to develop drug production facilities. Some of the top players in the market include Eli Lilly and Company, Pfizer Inc. Bayer, Novartis, Merck & Co. Inc, Sanofi, Johnson & Johnson and Merck.

    The key drugs in demand are systemic and pulmonary hypertension drugs.  The major anti-hypertensive drugs, such as   metoprolol, bisoprolol, perindopril and benazepril have a stable market share. While local companies are gaining traction, international brands are said to be still leading the pack. Nonetheless, the competition is fierce.

    The market is growing at a very rapid pace. And with rise in technological innovation, analysts expect the market to remain innovation-led, with frequent acquisitions and strategic alliances adopted as the key strategies by the players to increase their industry presence.

    The players are doing everything possible to protect their markets, using multi-pronged strategies such as dropping prices and offering patient assistance programmes. Continued pricing pressure is said to have led several of the major drug companies to re-evaluate their businesses.

    For instance, global pharmaceutical company Eli Lilly appears poised to become the market leader. With a 142-year-long record in researching, creating, and marketing high-quality medicines, the company has established itself in the Nigerian hypertension business.

    The other big player in the market is Pfizer. It has a great strength on domestic sales with prescription drugs indicated for anti-hypertension, anti-hyperlipidemia and anti-diabetics. The company has invested in drug development and the discovery of new medicines.

    Bayer is also poised to give other hypertension drug manufacturers a run for their investments. An established and respected name in the pharmaceutical industry, Bayer engages in the research and development and production of active pharmaceutical products and intermediates, such as antivirals, antibiotics, antihistamines and anti-diabetics.

    Its pharmaceutical’s researchers and scientists use state-of-the-art laboratories and equipment to develop new drugs to against hypertension.

    Sanofi is another major contender. The company has reinforced its sustained commitment to healthcare through the provision of affordable medicines that are tailored to the needs of patients with the introduction of APROVASC, a fixed-dose combination treatment for the management of hypertension.

    Sanofi, at the launch of the product, in Lagos, said the introduction of new APROVASC range, and the continual support of establishing clinics for the better management of the disease, was in direct response to the healthcare needs of patients with hypertension in Nigeria.

    Also, to better support the patients in the management of the disease, Sanofi continues with its access to healthcare ambition in the opening of diabetes and hypertension clinics in partnership with health authorities. The first clinic was inaugurated at the Lagos State University Teaching Hospital (LASUTH) on January 29, 2015.

    The General Manager, Sanofi Nigeria-Ghana, Abderrahmane Chakibi, said through leveraging APROVASC availability in Nigeria, Sanofi will continue to contribute to making the lives of Nigerian hypertensive patients healthier.

    The company has built a global network for production, sales and Research & Development (R&D) not only in Nigeria, but also in main bases across the world and has provided globally competitive products.

    Sanofi is also said to have actively penetrated into the overseas market and has expanded the pipelines for developing new drugs with active investment in R&D.

     

    A thriving market for therapies

    The use of therapies to treat hypertension has continued. The embrace of alternative medicine underscores how deep the use of therapies is in the treatment of hypertension. Apart from drugs and orthodox medical care, companies are now selling herbal remedies to treat hypertension.

    The understanding is that anti-hypertensive medications work well for some people, but not for others, and the side effects can be unpleasant. However, those promoting alternative therapies are careful to say that they can supplement — but can’t replace — conventional treatments.

    In place of medications, there are now herbal products. Products built from a combination of traditional herbs, such as lavender, fennel, and chamomile, now lower blood pressure.  There are people that have switched their current hypertension treatments for herbal remedies.

     

    Enter ketogenic diet

    The ketogenic diet food market has gained a lot of popularity all over the world and is expected to reach $12.35 billion in 2024.

    A ketogenic diet is a low or zero carbohydrate diet that has become the number one choice for treating different health issues and in reducing weight.

    Diabetes and hypertension have become the most noticeable diseases in Nigeria in recent years. The ketogenic diet has gained a lot of attention in the past years for being the most effective strategy to lose weight.

    A ketogenic diet is a low-carbohydrate, fat-rich eating plan, which is trending in the market due to its popularity for treating medical conditions and aiding in weight-loss. It is an effective treatment for hypertension. Lots of Nigerians are following the ketogenic diet trend.

     

    Investment opportunities

    Pharma companies are looking for new ways to boost hypertension drug discovery potential, reduce time to market and reduce costs along the whole value chain.

    But for the depreciation of the naira, analysts see high drug prices as capable of helping to drive investment. The other issue is that Nigeria is also a market with a relatively predictable regulatory environment.

    Nigeria  has indeed, taken steps to reform its regulatory process to be more friendly towards foreign drug developers, with a particular focus on streamlining the approval process for products that have been licensed outside  the country in developed markets such as the US and the EU.

    International multi consultancy, Mckinsey, said Nigeria offers attractive opportunities for companies with realistic expectations and the ability to improve patients’ access to medicines.

    It  said the Nigerian pharma market could rise by as much as nine per cent a year to reach $3.6 billion by 2026 .The company  said Nigeria could contribute between $1.9 billion and $2.2 billion to pharma sales growth, 55 per cent of it from prescription drugs.

    Though the sector faces its fair share of challenges, health care provision may be about to turn a corner, with some major initiatives proposed or in the early rollout phase that could dramatically reshape the regulatory regime and re-designate roles and responsibilities for more effective outcomes.

    One of these is the move to reduce the sale of counterfeit and sub-standard medicine in the local market. The National Agency for Food, Drug Administration and Control (NAFDAC) is implementing drug distribution guidelines that will prevent leakages and a parallel black market from functioning by introducing a more tightly coordinated and monitored distribution chain.

    Pharmaceuticals manufacturers and importers are only permitted to sell drugs directly to Mega Drug Distribution Centres (MDDCs); State Drug Distribution Centres (SDDCs) and the national health programme.

    From there, MDDCs can only sell to wholesalers, while SDDCs can re-distribute to public health facilities, and in some instances, the national health programme, as well as wholesalers.

    Wholesalers, for their part, are only permitted to sell to community pharmacies, public health care facilities and private health institutions.

    On the consumer-facing side, only pharmacies and public and private health care facilities that are registered with the Pharmaceutical Council of Nigeria can retail directly to the public.

    In order to be registered as a participating pharmacy, one must have on board a superintendent pharmacist with at least five years of post-qualification retail experience.

    To open a registered MDDC, a pharmacist with over 10 years of wholesale experience is needed to manage the operation.

    To analysts, the guideline should reduce the challenges around counterfeiting by tracking and tracing product movement. It also opens up opportunities for new private businesses to participate in the distribution chain.

    Then, there is the issue of changing eating habits and an increase in sedentary lifestyles among an expanding middle class that has contributed to a rise in the prevalence of hypertension and diabetes.

    With rising levels of disposable income among some segments of society, there is greater demand for private coverage. Accordingly, the private sector has a significant role to play in ensuring reliable and affordable hypertension health care reaches all segments of society.

    Experts speak

    While the scramble for Nigeria’s hypertension drugs market is gaining momentum, medical experts have tasked the Federal and State governments to provide blood pressure measuring kits in work places and other locations to tackle the rising incidences of sudden death among Nigerians.

    They gave the advice at the first annual lecture of the School of Health and Health Technology of the Federal University of Technology, Akure (FUTA) in Ondo State.

    A consultant cardiologist, Obafemi Awolowo University Teaching Hospital, Prof. Oluwadare Ogunlade, who spoke on the theme: “Demystifying Hypertension: The Silent Killer”, urged government at all levels to provide blood pressure measuring kits in schools, work places and other locations to afford citizens the opportunity to freely measure blood pressure to prevent debilitating ailment and death.

    Explaining further, the medical expert said hypertension is a silent killer “because in many cases it presents without symptoms until it is about to destroy its victims.”

    He said though blood pressure is important for the working of the body, when continuously raised it can damage vital organs such as the kidneys, heart, the brain and other internal organs which end up manifesting on the outer body parts in form of stroke and other deadly diseases.

    Ogunlade emphasised the need for regular check of blood pressure which he noted could be done with the use of appropriate kits at home and in the offices and not only in hospitals.

    The cardiologist said a number of factors including the depressed economy, insecurity, insatiable desire and stress could be responsible for the increase in hypertension cases.

    He advised Nigerians to be conscious of risk factors such as sweet things, alcohol, salt, obesity and hereditary causes to put the silent killer which he described as manageable in check.

    FUTA’s Vice-Chancellor, Prof Joseph Fuwape, represented by the Dean, School of Earth and Mineral Sciences and Chair, Committee of Deans, Prof Pius Enikanselu, recalled that surveys have shown that more than 80 per cent of deaths in developing countries are caused by non-communicable diseases and half of those deaths involve people in their productive years.

    This, according to him, has taken its toll on the development of the economy. He noted that FUTA, as a pacesetter has taken initiative and gotten patents in research projects for the management of Type-2 Diabetes Mellitus and High Blood Pressure recently as part of activities to rebuild the nation’s healthcare system.

    He stated that the introduction and production of its Moringa, ginger and garlic breads was aimed at preventing some of such diseases as examples.

    The Dean of the school, Prof Ayotunde Adeagbo, said the purpose of the lectures was to enlighten the public about the effective management of hypertension and other non-communicable diseases and chart a way forward for the reformation and improvement of the country’s health sector.