The Nation Newspaper

Category: Money

  • Why banks’ loans to airlines go bad, by Kuru

    Collins Nweze

    The increasing number of bad loans recorded by banks in the aviation sector has been attributed to poor understanding of airline business by banks rushing to lend to the sector, Managing Director/CEO Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru has said.

    The AMCON chief said failure of many airlines in Nigeria and why those that are still operational are struggling for survival is attributable to several problems including greed exhibited by airline owners, financial rascality, overbearing charges and taxation by regulatory agencies, unpredictable and unstable forex, non-existent good corporate governance principles and lack  lack of due diligence procedure among others.

    Kuru spoke in Lagos at the weekend also heaped further blame on banks who rush into the business of funding aviation without the requisite knowledge or understanding of the aviation business. He was speaking at the Aviation Leadership CEO’s Roundtable to commemorate the 10th anniversary of Aviators Africa magazine in Lagos.

    Delivering the keynote address at the event in a paper titled “Aircraft Financing: The Issues & Challenges of Asset Management Corporation of Nigeria (AMCON),“ the AMCON boss, who was represented by Tajudeen Ahmed, a top official of AMCON also called on the federal government and indeed all stakeholders to take a wholistic review of the business of aviation in Nigeria because of the critical role the sector plays in the growth of any economy.

    He said, “In my opinion, the aviation sector, which is a critical component of the transport, is perhaps one of Nigeria’s most challenging sectors; especially in the light of the massive need for infrastructure development in air, rail, road and sea transport to ensure seamless movement of people and cargo. Regardless of the mode of transport – the aviation sector has proved to be a catalyst for the economic development of nations. It is the wheel that drives economic activities. The air transport sector facilitates trade, tourism; boosts productivity in the economy; improves efficiency in the supply chain; it is an enabler for investments; can spur innovation, facilitate commerce and provide fast and reliable delivery of cargoes and services.”

    According to him, a sector as strategic as aviation must be given all the necessary policy backings by the government to enable the sector to take its pride of place in Africa. He disclosed that AMCON’s experience with its intervention in aviation has made it clear to him that there was need for a total overhaul of the modus operandi in the sector. In a passionate submission, the AMCON CEO, who was a former managing director of a bank, said, “From what we now know, there are serious issues in aircraft financing because our people dabble into the business of aviation with the wrong capital mix. On the other hand, the banks who are the primary source of funding also have short term views about the business.

    Banks that have attempted to fund the business in the past neither had the deep expertise nor carried out proper due diligence before committing their funds.

    Banks lack both the financial capacity as well as the expertise in personnel to critically analyse the business and its associated risks before throwing their money into aircraft/aviation financing.

    “Because the banks do not understand the business, it is easy for any ‘sharp businessman’ with dubious intentions to approach them with dodgy proposal to float an airline just to get loans that will go bad shortly after. Such cases abound in the industry. No wonder Nigerian banks, having watched the trend of the short lifespan of aviation investment shy away from further funding. The previous management of Arik without carrying out serious feasibility studies some years back bought two A340 planes for $260 million dollars and within four years, it was discovered that the planes are commercially obsolete. So even with that huge capital outlay, the two planes were not able to operate to generate the money to service the huge debt, not to talk of making profit. This is just one of many.

  • Ecobank CEO advises youths on savings

    COLLINS NWEZE

    The Managing Director, Ecobank Nigeria, Patrick Akinwuntan, has called on students and youths to imbibe the habit of saving, stressing that it would make them financially responsible and stable.

    He spoke at a lecture to mark World Savings Day at Ahmadu Bahago Secondary School, Minna, Niger State.

    Represented by the Zonal Head of Operation, North Central, Mr. Sadiq Adeyemi, Akinwuntan defined saving as money set aside for future use, adding that it is also an income earned that is not spent.

    ”I urge you to give priority to saving a portion of funds that come your way.  This should be deliberate and intentional. Savings will create room for your financial independence, and it will enable you to handle emergency situation, pay for accommodation, education, self development, retirement and vocational lifestyle, while also ensuring a guaranteed future,” he said.

    He pointed out that savings would create room for financial independence and helps in times of emergencies; it also helps address vital needs such as accommodation, education, self-development, retirement and vocational lifestyle.

    Read Also: FCMB promotes savings culture among youths

     

    He urged the students and staff of the school to approach a financial institution to open a savings account, stating that such savings would in turn earn them interest. “To the students, learn to save at least 10 per cent of your pocket money and watch your money grow by way of interest payment by your bank.”

    He said saving in a bank would give them access to loans. He appealed to parents to encourage their wards/children to save their money in a bank at their young age, saying such behaviour would not only make the children financially prudent but will also discourage them from social vices such as stealing.

    He observed that money not saved in bank is prone to theft, misplacement and could get lost in the event of fire outbreak.

    The World Savings Day (WSD) initiative is set up by the Bankers’ Committee through its Financial Literacy and Public Enlightenment Sub Committee (FLSC) for children and youths in secondary schools nationwide, both public and private, with the aim to educating them on the essence of saving.

     

  • $60b I&E forex cash helps naira stability

    The over $60 billion turnover recorded in the Investors’ and Exporters’ (I&E) Forex Window in 2019 has surpassed stakeholders’ expectation and raised new hopes for continuous stability of the Naira. Launched by the Central Bank of Nigeria (CBN) in April 2018, the window is not only a boost to forex liquidity, it has boosted foreign capital inflows into the economy, writes COLLINS NWEZE

     

    Not many investors  local and international gave it any chance to succeed when it was unveiled. But 29 months after, the Investors’ and Exporters’ (I&E) Forex window, launched by the Central Bank of Nigeria (CBN) in April 2017, has attracted over $60 billion to the economy. It has also remained one of the key instruments expected to help stabilise the local currency against other currencies.

    The I&E Forex window, seen as a ‘willing buyer, willing-seller window’, allows foreign investors to bring in dollars into the economy at any price of their choice, provided they could find buyers at such rate. The figure at the window has also impacted positively on the Purchasing Managers’ Index (PMI).

    CBN Governor Godwin Emefiele said the I&E Forex window is one of the policies that sustained the stability of the naira and will continue to raise foreign capital inflows into the economy.

    He said at the 54th Annual Bankers Dinner in Lagos at the weekend, that as part of the bank’s priorities for next year, the regulator is determined to maintain its stable exchange policy stance in the near to medium term given the relatively high level of reserves.

    Emefiele, who spoke on the theme: “Delivering a strong Sustainable Growth for the Nigerian  Economy”, added that the dollar inflows through the window  have supported naira’s stability.

    He said: “With a moderated inflation rate, positive Gross Domestic Product (GDP) growth and improvements in our external reserves position, the naira-dollar exchange rate at the I&E Forex window has remained stable for the past 29 months at N360 – $1 and we have witnessed significant convergence in the exchange rate across the various market windows.

    Local currency has also remained at N306 to dollar at the official market.”

    A report by FSDH Research, said that prior to the I&E Forex window introduction, the market and exchange rates were in turmoil. However, in a dramatic turn of events, the acute shortage of forex which businesses and individuals grappled with, witnessed an unprecedented improvement, with banks and Bureaux de Change (BDCs) now desperately looking for forex buyers.

    The FSDH Research Monthly Economic and Financial Market Outlook, said the positive domestic  and external environment will  further lead to external  reserves accretion  in  the short-term, a development the report predicted, will further stabilise the foreign exchange rate.

    Read Also: $57 budget 2020 oil benchmark unrealistic, says CBN

     

    Defending the Naira

    The CBN injected over $10.97 billion into the foreign exchange market between January and October, last year to defend the naira against other major currencies, including the US dollar. Similar interventions have been injected to the market within same period of this year.

    The $10.97 billion was based on weekly compilation of amount released by the apex bank to boost liquidity in the foreign exchange market.

    The CBN usually intervenes in the foreign exchange market by injecting liquidity about three times a week. The intervention is provided to authorised dealers in the wholesale segment of the market as well as other sectors of the economy such as agriculture, manufacturing and the Small and Medium Enterprise segment.

    Customers that required foreign exchange for invisible things such as tuition fees, medical bills and Basic Travel Allowance are also allocated funds from the intervention.

     

    Before I&E Forex window

    Before the introduction of the forex window, the local equities market and the foreign exchange (forex) market were in shambles.  The All Share Index (ALSI) was continuously shrinking and the naira weakened against other currencies, especially the dollar.

    The I&E window has become the attraction, making many of the business concerns to take another look at their exit from the country.

    The introduction of the window was followed by continuous interventions by the CBN which enabled banks and BDC operators to meet forex demand at the retail end of the market. Thus, the window has become a life-saving pill for the domestic economy as it has attracted about $60 billion into the market, enhanced transparency and made forex available to the end-users.

    The operations of companies, especially manufacturing, has been on the upward swing with an improvement in inflation figures as well as equities market performance.

    Before the stability in the forex market and naira, the economy witnessed a depressed Gross Domestic Product (GDP) growth, which culminated in a recession in 2016.

    “There was also rising inflation, which peaked at almost 19 per cent in January 2017 and a persistently rising unemployment rate to 14.23 per cent in 2016 fourth quarter from 6.41 per cent as at 2014 fourth quarter. There was also a significant depreciation of the exchange rate, reaching N525 to $1 in February 2017 and witnessed a fast depletion of the reserves which was drained down from about $23.6 billion in October 2016 from as high as $40 billion in January 2014.

    A  Lagos-based economist and Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, described the introduction of the I&E forex window as the best policy implemented by the CBN.

    Speaking on the issue, CBN’s Director, Corporate Communications, Isaac Okorafor, reiterated the bank’s commitment to ensure adequate forex supply to genuine customers to achieve the goal of forex rates convergence.

    Managing Director, Afrinvest West Africa Plc, Ike Chioke, said the window has won the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets leading to impressive appreciation in the equities market and stabilising the naira.

    Before the introduction of the window, foreign investors’ appetite for local assets waned significantly on the back of currency crisis which in turn fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability.

    According to the CBN spokesman, forex supply to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira. The apex bank is a market participant at the window to promote liquidity and professional market conduct.

    He said that the apex bank assured that the exchange rates of the transactions would be as agreed between authorised dealers and their counterparties.

    Besides, he said the regulator reserved the right to intervene as a buyer or seller, as it deems fit, in the window, even as information on transactions between authorised dealers is reported to the CBN on a daily basis. Manufacturers and other foreign exchange (forex) end-users also seem to be having a great time over the coming of the window.

    Barely a month after trading at the window commenced operation, international credit rating agency, Fitch Ratings, released a report, stating that the establishment of the I&E Forex window had led to an improvement in banks’ forex liquidity situation.

     

    Currency control measures

    The CBN has imposed some currency control measures to save the naira. In June 2016, it curbed access to the interbank currency market for importers bringing in a variety of goods. In an effort to conserve its dollar reserves, the bank said importers could no longer get hard currency to buy 41 items, ranging from toothpicks and rice to steel products and private jets.

    Other measures it took include the first Naira-Settled Over-the-Counter (OTC) Forex Futures Market (FFM) launched with FMDQ OTC Securities Exchange and the planned resumption of dollar sales to the BDCs.

     

  • StanChart invests $3b in technology

    By Lucas Ajanaku 

     

    Standard Chartered on Monday said said it has spent over $3 billion in technology.

    Its Chief Executive Officer, Lamin  Manjiang, who spoke at the unveiling of the bank’s first digital bank in the country tagged: Capturing the Digital the Initiative (CDI), said though the lender doesn’t announce the breakdown of individual investments, over $3 bilion has so far been spent between the last three and five years.”It is really about making easy, convenient and secure for our clients and we think we are spending what we need to spend to achieve this,” he said.

    He said Nigeria is strategic to the bank’s  business and will remain so.

    According to him, the country is the bank’s biggest in terms of revenue and profit. He also unveiled Burna Boy as the lender’s brand ambassador, saying he shared so much with the bank. He said the digital platform will enable the bank to play in the retail area and will give it competitive advantage in the country.

    “Africa is strategically important region where we have been investing steadily over the years. Nigeria is ranked the 26th largest economy in the world and the largest in Africa. Nigeria accounts for nearly 20 per cent of the continent’s gross domestic product  (GDP) of about 75 per cent of the West Africa economy. We believe the CDI proposition is a great opportunity for a large market and one of Africa’slargest economy,” Manjiang said.

    According to him, the country’s banking market is developed with FinTechs, banks as well as telcos playing active roles in the digital banking ecosystem.

    He said: “USSD has pushed the envelope of mobile payments in the past 24 months and there would be more disruption in the financial space in the future. A digital approach made sense for Nigeria given the market demand for technology and innovation in banking; growing youths demographic requiring informed guidance around creating and sustaining wealth; and the opportunity to drive financial inclusion for the unbanked.”

    He said Standard Chartered is on branch optimisation and efficiency drive where digital marketing, Web and mobile, artificial intelligence  (AI), virtual and voice contact centre become the interface between the bank and the customer. This strategy, he said is about empowering the customer to bank on their terms any time any where.

  • Maltina celebrates the optimistic Nigerian spirit, unveils 1,000 smiles campaign

    By Collins Nweze

     

    Nigeria’s leading malt drink, Maltina has released 1,000 smiles captured during its tour across the country with the Maltina ‘1000 Smiles’ campaign.

    Launched in partnership with media entrepreneur and blogger, Noble Igwe, the campaign was relaunched in August 2019 with the ‘Happiness Team’ – which includes the Maltina brand team and celebrity blogger; Nobe Igwe – visiting several Nigerian cities including Wadata, Nnewi, Keffi, Abuja, and others to share happiness with consumers.

    According to the Portfolio Manager, Nigerian Breweries Plc, Ngozi Ngonadi-Nkwoji, “A smile has the potential to change moments in people’s lives, can improve the moods of those that we meet daily, and can inspire communities – thereby changing the world one person at a time.

    We believe that smiles can inspire the world, which influenced our mission to share happiness, while also emphasizing Maltina’s position as the No.1 nourishing malt drink, specially made from natural ingredients to give the complete richness of malt to Nigerians”.

    “Regardless age, gender, or background, the ‘Maltina 1000 Smiles’ campaign was an opportunity to share exciting experiences with many consumers that we met, giving us a chance to create happy moments and share happiness,” she said.

    The tour details unique stories, photos, videos, including other fun activities with participants in several cities, while sharing cans of Maltina drinks.

    The Maltina ‘Happiness Team’ will be unveiling the 1000 smiles captured across different media platforms, telling engaging stories of Nigerians from diverse backgrounds to inspire people and share happiness and joy.

  • Stanbic IBTC Bank wins awards

    Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC, has been named amongst the Top 100 banks utilizing social media globally. The Top 100 list recently released by The Financial Brand, reflected that Stanbic IBTC Bank emerged number 55 on the list of global social media savvy banks for the third quarter of 2019. The Top 100 list is made up of banks and credit unions who are considered adept at using major social media channels.

    The criteria which was adopted in adjudging Stanbic IBTC Bank as the 55th in the list of global banks include Facebook ‘Likes’, Twitter followers, most tweets sent, most Twitter accounts followed, most YouTube video views and most YouTube subscribers.

    Stanbic IBTC Bank’s social media statistics reflected that the financial institution had 593,055 Facebook ‘Likes’, 240,555 Twitter followers and 8,676,407 YouTube videos, as at the period the third quarter report was released.

    Speaking on the list, Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Bank PLC, described the feat as a result of the bank’s agility and continuous innovative exercises.

    He said: “I am delighted that Stanbic IBTC Bank emerged as one of the top banks effectively utilizing social media, globally. It is proof that even though we are a Nigerian bank, we are taking giant strides globally in the social media space. This is also a reflection that our digitization agenda is producing results.”

    Dr. Sogunle further stated that the bank’s presence on social media is part of an innovative outline geared towards ensuring that it provides unparalleled levels of services to its customers. He added: “Our social media channels provide platforms for us to deliver excellent levels of service to our customers. Complaints which cannot be resolved via other e-banking channels can be resolved via our social media platforms. They also provide a fast and efficient means of passing information to our customers; hence the high level of interactivity on the platform.”

    The Stanbic IBTC Bank Chief Executive expressed optimism that the bank would rank higher in subsequent reports. He said: “Stanbic IBTC Bank is pursuing a retail banking strategy. Our aim is to be amongst the top retail banks in Nigeria. This will entail higher levels of interaction on our social media platforms. Our aspiration is to ensure that our customers and stakeholders experience optimum levels of service on our social media platforms. It is only when they are satisfied that we can consider our job done.”

  • Elumelu tasks leaders on business environment

    By Collins Nweze

     

    Founder of the Tony Elumelu Foundation and Chairman, Heirs Holdings and United Bank for Africa Group, Tony Elumelu has urged African, Caribbean and Pacific (ACP) Heads of State to improve the business environment in their countries to drive industrialisation and wealth creation in ACP member states.

    He spoke during a keynote speech on the theme “Industrialisation and Private Sector Engagement for Economic Transformation of ACP States” at the Presidential Dialogue of the 9th ACP Business Summit in Nairobi, Kenya.

    Elumelu stated that industrialisation will not be achieved without support for small and medium scale enterprises (SMEs) and improved access to electricity.

    “We cannot hope to industrialise if we do not fix the issue of power, if our entrepreneurs spend so much of their resources to power their businesses, how then are they expected to make the investments necessary to upgrade and industrialise? If we do not tackle these pertinent issues, we will be unable to achieve industrialisation, wealth creation and poverty reduction,” he said.

    He highlighted infrastructure development as another critical area needed to achieve sustainable development, highlighting the key role the United Bank for Africa Group plays in achieving this. “UBA is a force for development in Africa through infrastructure investment and leading the way in cross border payments and services, with the objective of encouraging trade across the continent,” he said.

    Read Also: EFInA: More women use informal financial services

    While citing the impact of the flagship Entrepreneurship Programme of the Tony Elumelu Foundation, Elumelu highlighted the critical role partnership between the private and public sectors, as well developmental organisations, play in achieving industrialisation.

    The Tony Elumelu Foundation, a private-sector-led philanthropy,  is on a mission to catalyse the economic transformation of the continent by empowering young African entrepreneurs – over 7,500 beneficiaries across 54 African countries thus far – through its Entrepreneurship Programme.

    Elumelu shared stories of beneficiaries in Kenya including Peter Gichuhi Mwethera, who has developed a contraceptive gel, Uniprin, which aims to prevent HIV infection, and Maureen Amakabane whose company, ‘Usafi Sanitation’, is bridging the sanitation gap in schools by providing waterless toilets.

    He said: “To date, we have 497 beneficiaries in Kenya, 596 in Uganda, 187 in Tanzania and 194 in Rwanda. This brings the total number of TEF Entrepreneurs in East Africa so far to 1,474, so far. Organisations such as the UNDP, African Development Bank, the ICRC, and GIZ have helped increase the number of young entrepreneurs we can support “.

    The President of Kenya, Uhuru Kenyatta shared the same approach to development, while highlighting his country’s private-sector-focused plan which has propelled the country’s ease of doing business rank from 129th position out of 190 economies in 2013 to the 56th position in 2019.

    President Kenyatta said: “Our young people are tech-savvy and indeed with a huge entrepreneurial spirit. They are ready to embrace the digital revolution. We are experiencing a flourishing digital innovation ecosystem which can stimulate the rate of growth of ICT and technology innovations, and nurture vibrant tech startups and incubator hubs as Tony [Elumelu] has mentioned, of those young men and women he has supported through his family and Foundation”.

  • EFInA: More women use informal financial services

    By Collins Nweze

     

    Joint reserach conducted by the Central Bank of Nigeria (CBN) and Enhancing Financial Innovation & Access (EFInA) has shown that women have greater access to informal financial services than men.

    The Assessment of  Women’s Financial Inclusion in Nigeria report, launched yesterday in Lagos,  showed that women exhibit relatively high access and usage of informal-only financial services than men.

    This report presents a clear call to achieve gender equity by helping women access and use financial services to create and sustain economic opportunities, reduce poverty, and build financial resilience.

    “These services play an important role to manage liquidity, transact efficiently, build resilience from shocks, and create opportunities. However, they are often costly and can be high risk, particularly given the lower level of consumer protection they provide. By addressing these downsides, informal financial services could strengthen the customer experience and improve the quality of their product,” it said.

    “This report presents a clear call to achieve gender equity by helping women access and use financial services to create and sustain economic opportunities, reduce poverty, and build financial resilience. In order to achieve these aims, stakeholders must tailor initiatives to increase,” it added.

    Read Also: Elumelu tasks leaders on business environment

    nIt added that the causes and effects of low income, limited education, and lack of trust in FSPs are ‘macroeconomic’, gendered, and interlinked. “Therefore, as a first step, we recommend that stakeholders further discuss our findings to ensure alignment and collaboration. Following this, additional research to assess the drivers of these factors among women will deepen understanding and help actors to develop tailored solutions. Identifying appropriate pathways towards commercial viability, with or without improvements in income, education, and trust in FSPs, will also require an analysis of capacity building priorities and policy gaps”.

    Speaking about the research, Ashley Immanuel, Head of Programmes at EFInA, said: “This research highlights the ways in which gender inequality in Nigeria contributes to differences in financial access for men and women. To address the financial inclusion gender gap, we need to work together to address this gender inequality, earn women’s trust in financial services, and explore ways to build a better business case for reaching excluded women.”

    The EFInA Access to Financial Services in Nigeria surveys have found that, despite overall improvements in financial inclusion in Nigeria, we have not been able to close the gender gap in access to financial services. In fact, the gender gap – defined as the difference between the percentage of men that are financially included and the percentage of women that are financially included – grew slightly between 2008 and 2018.

  • Firm plans new investment in Nigeria

    The ZKTeco, the world leader in biometrics technology, identity management and security applications, has said it plans to establish its business in Nigeria that will serve as the hub for the sub-Saharan market. The Chinese company, with operations in over 35 countries, also plans to establish a research and development centre in the country.

    The global president and founder of ZKTeco, John Che, who was in the country on a working visit, gave this indication on Thursday in Lagos at an interactive session with journalists organized by its local partner, SB telecoms and Devices Limited.

    According to him, Nigeria was considered to act as hub for the rest of Africa because of the country’s strategic position on the continent, including its population, the market size, the GDP, as well as the government’s efforts to transform the economy via its diversification agenda and encouragement of foreign investments. Along with the office will be the establishment of an R&D centre at the University of Lagos to take advantage of the abundant local talents to create solutions that can run on ZKTeco platforms.

    “ZKTeco already has a presence in South Africa and Egypt, but based on our growth objectives and the fact that Africa has a strong growth prospect, we decided to increase our stake in Africa and we identified Nigeria as the epicenter of Africa, representing the strongest growth prospect on the continent, with opportunities to collaborate on its identity management and biometrics standard needs,” Che said.  Chief Executive Officer of SB Telecoms and Devices Limited, Mr Afolabi Abiodun, added that ZKTeco’s relationship with Nigeria started about eight years ago when SB Telecoms became its accredited partner in Nigeria, also servicing the West African sub-region.

    Che stated that with ZKTeco’s expertise in biometric technology, identity security management, and time management, the company hopes to collaborate with Nigerians, both in the private and public sectors, in line with the company’s growth objectives, to help fast track the country’s development.

    Biometric technology, the ZKTeco boss said, is the future of society. He stated that Nigeria will achieve its developmental goals faster if it got its biometric identity management right. He gave the example of China’s remarkable growth over the past three decades, which he said was largely driven by the Asian giant’s ability to establish a robust identity management process. “Identity management through biometrics is very critical to growth and development. Biometrics helps to drive the efficient management of time and resources, helping to boost productivity,” Mr Che said. He gave the example of the efficient immigration processes in China today due to biometrics deployment compared to the laborious practice of the past to buttress his point.

  • Sterling Bank wins PETAN’s Local Content Award

    Collins Nweze

    Sterling Bank Plc has won the Local Content Bank of the Year 2019 Award of the Petroleum Technology Association of Nigeria (PETAN) in recognition of its outstanding contribution to the growth of indigenous companies in the oil and gas industry.

    PETAN is an association of indigenous technical oilfield service companies operating in the upstream and downstream sectors of the Nigerian oil and gas industry.

    The award was presented to the bank at PETAN’s 14th Annual Oil Industry Achievements Awards Dinner which held in Lagos recently with the theme, “The oilfield of the future operational excellence.”

    Head, Upstream Oil and Gas of Sterling Bank, Dr. Luka Marne, who received the award on behalf of the bank from the Chairman of PETAN, Mr. Bank Anthony Okoroafor, remarked that the recognition will encourage the bank to continue to support operators in the industry.

    According to him, “We are excited to receive the prestigious Local Content Bank of the Year 2019 Award from Petroleum Technology Association of Nigeria. This award recognises the commitment of the Corporate and Investment Banking Directorate at Sterling for supporting the Nigerian Local Content initiatives. We are proud of this award and will continue to seek innovative ways of boosting local content in the Upstream, Midstream and downstream sub-sectors of the Oil and Gas industry.”

    In his welcome address, Mr. Okoroafor said PETAN remains committed to partnering with all stakeholders to create the enabling environment for the industry to thrive.

    He said PETAN is made up of Nigerian indigenous oilfield service companies and was founded to utilise the technical know-how acquired in the oil and gas industry by Nigerians as a springboard for economic and technological advancement.

    According to him, PETAN companies employ over 20,000 engineers and other technical personnel with a direct employment of about 80,000 people. PETAN companies also offer 250 distinct technical services to the Nigerian oil industry and many of these companies now offer similar services in Mauritania, Ghana, Cameroun, Equitorial Guinea, Congo, Gabon, Chad, Angola, South Africa, the Middle East, South East Asia and the United States.