The Nation Newspaper

Category: Money

  • Stock Exchange lifts suspension on Royal Exchange

    AUTHORITIES at the Nigerian Stock Exchange (NSE) on Thursday lifted suspension placed on trading on the shares of Royal Exchange Plc after the insurance-based holding group submitted its audited report and accounts.

    The NSE had in July 2019 suspended trading on Royal Exchange and 10 other companies for failing to adhere to best corporate governance and extant post-listing requirements that make it mandatory for quoted companies to submit their financial statements within stipulated timelines.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    The NSE stated that Royal Exchange has submitted its audited financial statement, prompting the Exchange to restore trading on the company on Thursday.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that the group made a net loss of N156.18 million in 2018, an improvement on net loss of N969.64 million recorded in 2017. Loss per share thus declined from 19 kobo in 2017 to 3.0 kobo in 2018.

    Gross premium written rose by 15 per cent from N12.82 billion in 2017 to N14.71 billion in 2018. Underwriting income rose by 28 per cent from N7.6 billion to N9.7 billion, Underwriting profit jumped by 249 per cent to N3.67 billion in 2018 as against N1.05 billion in 2017. Profit before tax stood at N326.87 million in 2018 compared with pre-tax loss of N682.13 million in 2017.

    However, the interim report and accounts of the group for the first quarter ended March 31, 2019 showed a general decline in performance.  Gross premium written dropped by 27 per cent to N5.6 billion in first quarter 2019 as against N7.68 billion recorded in first quarter 2018. Underwriting income declined by 12 per cent from N2.7 billion to N2.38 billion. Underwriting profit dropped by 55 per cent to N563.37 million in first quarter 2019 compared with N1.23 billion recorded in corresponding period of 2018.

    The group recorded a pre-tax loss of N142.09 million in first quarter 2019 as against pre-tax profit of N572,40 million in first quarter 2018. After taxes, net loss rose to N187.56 million in first quarter 2019 as against net profit of N389.9 million in first quarter 2018. Loss per share thus stood at 4.0 kobo in first quarter 2019 as against earnings per share of 8.0 kobo in first quarter 2018.

    An investment fund set up by the German government recently acquired 39.25 per cent in Royal Exchange General Insurance Company (REGIC) Limited, a subsidiary of Royal Exchange. The investment fund- InsuResilience Investment Fund (IIF) was set up on behalf of German government by KfW and managed by Swiss-based Impact Investment Manager BlueOrchard Finance Limited.

    The proceeds of the acquisition would help REGIC to spur growth by increasing its risk capital and supporting its underwriting capacity in agriculture, thus extending its outreach to low income farmers.

    Based in Luxembourg, IIF was set up by KfW, the German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The overall objective of IIF is to contribute to adaptation to climate change by improving access to and the use of insurance in developing countries.

  • Ecobank chief asks bankers to reposition for challenges

    THE Managing Director, Ecobank Nigeria, Patrick Akinwuntan has called on bankers to  reposition their skillsets and knowledge-scope in order to meet with the challenges of a fast-changing business environment and marketplace.

    Akinwuntan, who was the guest speaker at the 2019 graduates induction & prize award event of the Chartered Institute of Bankers of Nigeria (CIBN), in Lagos at the weekend gave this advice in his presentation titled: “Repositioning for Relevance in a Competitive Environment”.

    He said the banking sector was undergoing significant disruptions in a bid to remain relevant, increase convenience, productivity whilst ensuring banking is simple for individuals and businesses alike. Stressing that bankers must respond through repositioning, adoption of and adaptation to potentially disruptive technologies in their career models and strategies.

    Read Also: Ecobank denies sack of workers

    The Managing Director explained that Ecobank Nigeria, which is a member of Pan African bank, Ecobank Transnational Incorporated (ETI)  based in Togo is already repositioning its entire workforce for the Millennial age through various trainings, skills development and capacity building, stating that the Bank has made many pioneering achievements and ‘firsts’ across various products and digital platforms in the country in line with its repositioning efforts. “Only recently, the Chartered Institute of Bankers of Nigeria (CIBN) accredited our state of the art training Academy which runs the Entry Level Development, Graduate and Management Trainee programs.

     

     

  • BoI disburses $2.4b to two million SMEs

    THE Board Chairman, Bank of Industry (BoI), Aliyu Dikko on Thursday said the lender has provided financial support worth N678 billion ($2.4 billion) to over two million Small and Medium Enterprises (SMEs).

    Dikko spoke at the North East Rehabilitation Fund Focus Group Session in Abuja. He said the bank is partnering with Emergency Coordination Centre (ECC) to conduct onsite focus group sessions in over 20 communities across the six states.

    BoI’s commitment is all encompassing and recognizes the need to invest in all states where the economic activities need to be revived.

    The Executive Director, Micro Small and Medium Enterprises (MSMEs)  at BoI, Toyin Adeniji disclosed that the focus is on the BoI-North East rehabilitation fund, NERF is aimed at transforming the region by supporting businesses with easily accessible zero interest in the region.

    Adeniji said the fund is tailored to meet the peculiar needs of the region, it is rolled out in three main categories, micro credit for petty traders, small and medium scale loans and the larger loans for the rehabilitation of industries.

    NERF has flexible requirements and is designed to reach all categories of businesses that operate in the post crisis communities – from the woman with a small table top shop at the border community of Mubi in Adamawa to the much larger flour production plant in Maiduguri.

  • CBN’s Business Expectations report predicts stable naira

    The naira is tipped to appreciate this month, next month and within the next 12 months, a business expectations report released on Wednesday by the Central Bank of Nigeria (CBN) has shown.

    The naira currently exchanges at N307/$1 at the oficial market and N362/$1 at the parallel market rate.

    According to the report, the level of inflation is also expected to increase slightly in both the next six months and the next 12 months while borrowing rate will rise in the current month, next month and the next 12 months.

    ‘’Respondent firms expressed optimism on the macro economy in August 2019. Respondents’ outlook on the volume of total order, business activity and financial conditions (working capital) were positive during the review period,’’ the report added.

    Read Also: NASSI to CBN: release funds to SMEs

    It said firms identified insufficient power supply, high interest rate, financial problems, unfavourable economic climate, unclear economic laws and unfavourable political climate as major factors constraining business activity in August 2019.

    The August 2019 Business Expectations Survey (BES) was conducted from August 12-21, 2019 with a sample size of 1050 businesses nationwide. A response rate of 95.4 per cent was achieved, and the sample covered the services, industrial, wholesale/retail trade, and construction sectors.

    The respondent firms were made up of small, medium and large corporations covering both import- and export-oriented businesses.

    At 28.6 index points, respondents expressed optimism on the overall confidence index (CI) on the macro economy in the month of August 2019. The business outlook for September 2019 showed greater confidence on the macro economy with 64.7 index points.

    The optimism on the macro economy in the current month was driven by the opinion of respondents from services (15.4 points), industrial (10.1 points), wholesale/retail trade (2.4 points) and construction (0.7 points) sectors. For next month, the major drivers of the optimism were services (36.1points), industrial (20.7 points), wholesale/retail trade (6.0 points) and construction (1.9 points) sectors.

  • Zenith Bank introduces ZECA Education Loan for children

    Zenith Bank Plc has introduced the Zenith Children’s Account (ZECA) Education Loan to assist parents pay their children/ wards school fees as the new school session begins.

    The loan offering, which is disbursed directly to the account of the beneficiary’s school, comes at a very competitive interest rate and flexible repayment tenors. To access the loan, parents are required to open a ZECA account for their children/wards at any of the bank’s branches.

    Commenting on the new loan product, the Group Managing Director/Chief Executive of Zenith Bank Plc, Ebenezer Onyeagwu said “the bank remains focused on providing premium financial solutions that create value for its customers and meet their lifestyle needs.”

    Read Also: Sterling Bank holds summit on $1tr agribusiness

    ZECA is a specialised savings product for children between the ages of 0-17 years. The account enables parents/ guardians save towards securing the financial future of their children/wards.

    Zenith Bank Plc is recognized as one of the most innovative financial institutions in Nigeria and was voted the most customer-focused bank in Nigeria for the Retail and SME segments in the 2018 KPMG Annual Banking Industry Customer Satisfaction Survey (BICSS).

    The bank’s commitment to world-class service standards has led to several product innovations over the last few weeks. These include  the “Zenith Timeless Account”, which allows Nigerians aged 55 years and above bank for free; the “Zenith Save for Me”, a high interest target savings account and “Dubai Visa Service” on the Zenith Internet Banking Platform, which allows convenient application and payment for visas to Dubai.

  • UACN, Imperial Logistics seal $40m shares acquisition deal

    NIGERIA’s oldest surviving and largest conglomerate, UAC of Nigeria (UACN) Plc and South African leading logistics provider, Imperial Logistics Limited have entered into a share acquisition agreement that will see Imperial Logistics acquiring the controlling equity stake in MDS Logistics Limited, a subsidiary of UACN.

    Under the agreement, Imperial Logistics will acquire additional 8.0 per cent shareholding in MDS Logistics from UACN to increase Imperial Logistics’ equity stake from 49 per cent to 57 per cent. The transaction valued MDS at $40 million, about N12.24 billion.

    In consideration for the additional 8.0 per cent equity stake, Imperial Logistics will transfer selected profitable contracts to MDS and pay $2.4 million in cash. The transaction is however still subject to relevant regulatory approvals.

    MDS is Nigeria’s leading integrated logistics services provider. Through its network of warehousing and distributions assets, MDS links manufacturers with customers in more than 400 cities and villages across Nigeria. MDS is a critical supply chain and distribution partner to some of Nigeria’s leading corporates.

    Imperial Logistics is mainly an African and Eurozone logistics provider of outsourced, integrated freight management, contract logistics and distributorship – customised to ensure the relevance and competitiveness of its clients. The group is listed on the Johannesburg Stock Exchange in South Africa and employs over 25,000 people in 32 countries.

    Read Also: UACN lists 960.4m rights shares

    In a regulatory filing just submitted at the Nigerian Stock Exchange (NSE), Group Managing Director, UAC of Nigeria (UACN) Plc, Mr. Fola Aiyesimoju described the transaction as an important milestone for the conglomerate noting that the deal was in line with the group’s strategy of working closely with partners in empowering best-in-class management teams.

    According to him, since the commencement of the partnership in 2013, the group has been impressed by Imperial Logistics’ operational excellence in warehousing, distribution and transport.

    “We look forward to greater integration between MDS and the broader Imperial Logistics platform as we strive to deliver value to clients,” Aiyesimoju said.

    Managing Director, MDS Logistics Limited, Taiwo Ajibola, said MDS will remain focused on leveraging its assets, technology and capabilities to deliver value to its clients.

    “We will continue to benefit from the strengths of our shareholders, Imperial Logistics and UACN,” Ajibola said.

    Chief Executive, African Regions, Imperial Logistics Limited, Johan Truter said working with strong partners is at the core of Imperial Logistics’ strategy as it seeks to expand its businesses across Africa.

    “We consider Nigeria to be a strategically important market and are excited to continue our partnership with UAC to grow MDS and expand its service offering to clients,” Truter said.

  • FCMB trains Oyo State based entrepreneurs

    HUNDREDS of existing and start-up entrepreneurs based in Oyo State have benefitted from the seventh edition of the First City Monument Bank (FCMB) organised free comprehensive capacity building programme, tagged, ‘’Business Enterprises and Sustainability Training (BEST)’’, for Small and Medium Scale Enterprises (SMEs).

    The training, organised by FCMB Training Academy, the Bank’s Business Banking Group and seasoned facilitators, focused on business and skills development, marketing, finance and accounting for SMEs. It was held on August 24, in Ibadan, Oyo State and attended by over 300 entrepreneurs across various segments of business.

    The programme covered various topical areas such as identifying business opportunities, surviving in a harsh business environment and improving productivity. Other major areas covered also include raising capital, optimising sales, cost and revenue management, among others. It is one of the value-added offerings of FCMB to complement its efforts in the areas of lending and advisory services to SMEs with the objective of stimulating their growth and contributions to overall national development.

    According to the Executive Director, Business Development of FCMB, Mrs. Bukola Smith, the Bank recognises the increasing role and impact of SMEs. ‘’The BEST initiative is one of the innovative ways we empower, promote and lay a solid foundation for the long-term success of our SME customers. Without effective training and exposure, it could be quite difficult for their businesses to succeed. We believe this training will go a long way to impact positively on the SME operators who have participated in this programme. It will propel them to further develop themselves in order to compete favourably within and outside the Nigerian market. We, therefore, urge the beneficiaries to take advantage of the unique opportunities provided by this exercise. It is a veritable platform for them to take the lead to drive the diversification and growth of the Nigerian economy’’, she said.

    Also speaking, the Head, Training Academy of FCMB, Mr. Sola Oyegbade, stated that, ‘’BEST initiative is a proof of our commitment to the growth and sustainability of SMEs. We focus on helping and getting these businesses sustained, beyond just focusing on what value they add to our own Business on the immediate.

  • Report Corruption App, FLAG’IT coming

    THE Federal Roads Safety Corps and the Akin Fadeyi Foundation, conveners of the ‘Corruption Not In My Country’ project, a micro level anti-corruption TV Drama, have announced a major strategic partnership.

    The partnership will be driven on the platform of technology as the AFF is set to launch its newly designed Report Corruption App called FLAG’IT, which was funded by MacAuthur Foundation.

    According to a joint statement by both parties, FLAG’IT  shall serve as a tool to strengthen FRSC’s capacity to be integrity-driven, improve on public service delivery and be very responsive to public feedback. It shall also be a platform where citizens can provide positive feedback on credible and outstanding officers.

    Speaking at the event, the FRSC Corp Marshall, Boboye Oyeyemi said the Presidential decree 001, which supports the ease of doing business, has created more room for the government to be accountable and transparent in service delivery. He said the FRSC has improved tremendously through innovative projects like, the Joint surveillance activity, through which the FRSC partners with other agencies to improve governance in the country; Service improvement through which Nigerians can now secure their Driver’s licenses after two months, and after been certified by a regulated driving school; and a verification portal which helps track fake licenses issued to unsuspecting public.

    Programme Officer, Akin Fadeyi Foundation, Nabila Okino commended the Corp Marshall for boldly confronting corrupt practices within the Corps. She highlighted the Akin Fadeyi’s foundation’s objectives, programs and interventions in Nigeria, which includes Anti-Corruption campaign, which is driven through the ‘Not in My Country’ Edutainment skits and the ‘Never Again’ Radio Drama skits, which has been airing on CNN Africa and other TV Channels under the funding of the John D and Catherine T. MacArthur Foundation; past training programs in schools and now the incorporation of technology in the fight against corruption.

    She thanked the Corps Marshall, Dr Boboye Oyeyemi of the FRSC and his Team for their continuous efforts in ensuring safety on Nigerian roads. Okino said due to the depth of endemic corruption in our society, it was impossible to achieve meaningful gains in the fight against corruption without partnering with major stakeholders. This according to her, was what birthed the partnership between the FRSC and the Akin Fadeyi Foundation.

    Also present at the event, the Deputy Director, MacAuthur Foundation, Dayo Olaide expressed his Organization’s delight at the development and was full of commendation for the FRSC under Boboye Oyeyemi, for opening up its processes to transparency and accountability.

  • Teller jobs at risk as banks review business model

    BANKS are reviewing their business model in line with new technological changes that could lead to the scrapping of teller jobs in the next two to three years, The Nation has learnt.

    President, Chartered Institute of Bankers of Nigeria (CIBN), Uche Olowu,  who disclosed this at the 2019 Graduate Induction/ Prize Awards of the institute held in Lagos at the weekend, said the business model of today’s banks is being challenged.

    Olowu, who spoke on the theme: Repositioning for Relevance in a Competitive Environment disclosed that Artificial Intelligence and Robotics are changing the game in customer relationships and front office operations.  The institute used the occasion to induct 2,161 members. The figure represents 175 per cent over the  figure of 2018.

    Olowu said that jobs previously reserved for officers such as tellers may become obsolete adding that in the next two to three years, machines will be capable of performing approximately 30 per cent of the work currently done at banks.

    He said that in recent years, banks have gone from investing in bank branches or other brick and mortar establishments to greater investments in financial technology (FinTech) and the relevant specialised human capital.

    The CIBN boss said that investment in specialised human capital is particularly significant given the domination of technological solutions which are taking over human jobs.

    Also speaking, Managing Director/CEO, Ecobank Nigeria, Patrick Akinwuntan, said that financial institutions are faced with growing technological changes and have had to respond through the adoption of and adaptation to potentially disruptive technologies in their business models and in their broad corporate strategies. This is all in a bid to remain relevant, increase convenience and productivity and make banking simple for individuals and businesses alike.

     

     

     

  • BDCs prepare for FATF evaluation visit to Nigeria

    Bureaux de Change (BDC) operators, acting under the aegis of the Association of Bureaux De Change Operators of Nigeria (ABCON) are preparing for the annual mutual evaluation of their operations by the Financial Action Task Force (FATF) team visiting Nigeria soon.

    Speaking yesterday to reporters ahead of the visit, its President, Alhaji Aminu Gwadabe, said BDCs are getting ready to receive the FATF team. He said ABCON, in collaboration with the Central Bank of Nigeria (CBN) is organising a sensitisation workshop for over 4,500 licenced BDCs.

    He said the workshop, which will hold in the six geopolitical zones, will take off in the next one week.

    He added that the BDCs will be trained on the obligation of registering and filling reports on the Nigerian Financial Intelligence Unit (NFIU) goAML -Anti-Money Laundering portal.

    Gwadabe said the anti-money laundering training is intended to familiarise BDC operators with the process of money laundering — the criminal business used to disguise the true origin and ownership of illegal cash — and the laws that make it a crime.

    He said money laundering and terrorismfinancing pose  enormous threats and challenges to the economy, security, and social life  of the country, the region and the world.

    Gwadabe said  the training was also  designed to help BDCs maintain minimum standard of record keeping and increasing level of investors confidence for the economy.

    The training,  he said, will create awareness on the need to check money laundering and terrorism financing; ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs). It will also upscale BDCs’ compliance with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for Banks and Other Financial Institutions in Nigeria Regulations.

    Gwadabe said the visit became necessary after the FATF team in February, named Nigeria  in a proposed European Union blacklist of nations seen as posing a threat because of lax controls on terrorism financing and money laundering.

    The criteria used to blacklist countries include low sanctions against money laundering and terrorism financing, insufficient cooperation with the EU on the matter and lack of transparency over the beneficial owners of companies and trusts.