The Nation Newspaper

Category: Money

  • World Bank, AfDB to connect 300m Africans to electricity

    World Bank, AfDB to connect 300m Africans to electricity

    The World Bank Group and African Development Bank Group are partnering on an ambitious effort to provide at least 300 million people in Africa with electricity access by 2030.

    World Bank Group President ,  Ajay Banga, said the World Bank Group will work to connect 250 million people to electricity through distributed renewable energy systems or the distribution grid while the African Development Bank Group will support an additional 50 million people.

    He said that access to electricity is a fundamental human right and is foundational to any successful development effort.  Currently, 600 million Africans lack access to electricity, creating significant barriers to health care, education, productivity, digital inclusivity, and ultimately job creation.

    “Electricity access is the bedrock of all development. It is a critical ingredient for economic growth and essential for job creation at scale.  Our aspiration will only be realized with partnership and ambition. We will need policy action from governments, financing from multilateral development banks, and private sector investment to see this through,” Banga said.

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    This partnership is a demonstration of the determination of the World Bank Group and the African Development Bank Group to be bolder, bigger and better in tackling one of the most pressing challenges in Africa. The initiative is the most recent manifestation of the World Bank Group’s commitment to become more impact-oriented and is the byproduct of a concerted work-plan to build a better bank. It is aided by a constellation of regional energy programs that will now be aligned toward this common goal.

    For the World Bank Group to connect 250 million people, $30 billion of public sector investment will be needed, of which International Development Association, the World Bank’s concessional arm for low-income countries, will be critical. In addition, governments will need to put in place policies to attract private investment, and reform their utilities so they are financially sound and efficient with tariff mechanisms that protect the poor.

    Connecting 250 million people to electricity would open private sector investment opportunities in distributed renewable energy alone worth $9 billion. Beyond that, there would be substantial opportunities for private investments in grid-connected renewable energy needed to power economies for growth.

  • UBA Africa CEO seeks infrastructure devt funding

    UBA Africa CEO seeks infrastructure devt funding

    The Executive Director and CEO, UBA Africa, Mrs. Abiola Bawuah, has emphasised the importance of securing funding and forging strategic partnerships

    Acknowledging the pivotal role that infrastructure plays in driving economic growth and enhancing livelihoods on the continent, she underscored the urgency for concerted efforts to address the continent’s infrastructure deficit.

    Speaking in a panel discussion on infrastructure development in Africa, during the launch of the 2025 Africa Prosperity Dialogue, Bawuah highlighted the presence of regional, commercial, and development banks in Africa which, according to her, could offer the needed support for infrastructure financing to propel growth in Africa.

    She stressed the importance of collaboration among all financial stakeholders towards pooling funds for Africa’s development, just as she took time to highlight UBA’s contribution to infrastructure development over the years in Africa, including Ghana, and expressed the bank’s willingness to partner with governments and other entities to drive Africa’s development agenda with regards to closing the infrastructure gap in Africa.

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     She also emphasized the need for sustainable funding mechanisms, adding, “Our quest for good infrastructure like roads, railways, telecoms, etc. must be paid for, and therefore we must demonstrate the ability to pay for the funding,” she stated as she cited UBA’s financing of a $300 million road project in southern Africa, which is sustained through tolling mechanisms.

     Bawuah also called for dialogues aimed at reducing funding costs to make lending more viable for banks and urged the African Prosperity Network (APN) to convene discussions between banks, the Bank of Ghana, the Business Community, and other stakeholders to achieve this goal.

     The Executive Director also advocated for a review of Stock Exchanges in Africa, noting their underperformance and suggesting improvements to better support infrastructure development initiatives across Africa with long term funds.

     The panel discussion also featured prominent Personalities including the Group CEO of Telecel, Moh Damush, the Director-General of SSNIT, Kofi Bosompem Osafo-Marfo, and Hon. John Peter Amewu, Minister for Railway Development in Ghana, emphasizing the collaborative efforts needed from various sectors to drive infrastructure development in order to harness the opportunities that abound in Africa.

  • FBNQuest Merchant Bank reports N35.5b gross earnings

    FBNQuest Merchant Bank reports N35.5b gross earnings

    FBNQuest Merchant Bank has despite the prevailing economic challenges, reported a robust financial performance and outlined strategic growth initiatives aimed at delivering sustainable value to its shareholders.

    The bank reported a strong financial performance for the year 2023, with gross earnings improving by 43.1 per cent year-on-year to N35.5 billion.

    Profit before tax of N4.09 billion was recorded, representing a 36 per cent increase year-on-year while pre-tax profit  for the FBNQuest Merchant Bank Group was N9.98 billion, reflecting an increase of 91.5 per cent year-on-year.

    Maccido added “The asset management business achieved remarkable milestones, hitting above N600 billion in Assets under Management at the end of December 2023. The equities business also posted growth in pre-tax profit by 182 per cent year-on-year.” In line with its commitment to providing robust and sustainable returns to shareholders, the Bank declared an interim dividend of N1.01 billion.

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    This was announced at its recently held 9th Annual General Meeting, which served  as a platform to present the Bank’s Annual Report and Financial Statements for the financial year ended December 31, 2023.

    Chairman of the Board of Directors, Mallam Bello Maccido, commended the bank’s resilience in navigating through the complexities of the operating environment in 2023. He stated, “2023 was a year filled with unprecedented challenges that tested our resilience. Given the evolving economic landscape which was characterized by shifting government policies and volatile market dynamics, FBNQuest Merchant Bank stood resilient. Our ability to navigate through these challenges underscores our adaptability and unwavering commitment to excellence.”

    The bank’s board continues to ensure that its governance structures conform with international best practices and regulatory guidelines. At the meeting, shareholders approved the appointment of Afolabi Olorode as Acting Managing Director, noting that the approval of the Central Bank of Nigeria had been obtained for his appointment. The retirement of Kayode Akinkugbe as Managing Director and Mr. Taiwo Okeowo as Deputy Managing Director was also acknowledged, both individuals having served the Bank meritoriously for eight years each.

    Looking ahead to 2024,  Maccido expressed optimism about the improved outlook and opportunities for the bank’s various lines of business. He stated, “We are dedicated to accelerating revenue growth purposefully and responsibly. The bank remains committed to delivering value to its stakeholders and driving growth in the years ahead.

  • Experts: Blue economy opening investment windows for growth

    Experts: Blue economy opening investment windows for growth

    Nigeria has abundant opportunities for economic growth in the blue economy, including fisheries, tourism, transportation, and the prospect of being a regional hub in West Africa, experts at the 2024 Nigeria Development Finance Forum (NDFF) have said.

    In a communique released at the end of the conference held in Abuja, participants that include Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate; Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite; Director-General, National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Moji Adeyeye; Senior Partner, Olisa Agbakoba Legal, Olisa Agbakoba; MD/CEO, Mediterranean Shipping Company (MSC) Nigeria, Andrew Lynch among others.

    Director, Nigeria Development and Finance Forum, Jide Akintunde, said the participants at the two-day conference spoke on the theme: “The Road to Economic and Social Welfare Transformation”.

    According to them, the blue economy potential has been with the country for years but despite the potential, the ports in neighbouring Benin and Togo have continued to serve the Nigerian markets, and Ghana’s Port of Tema is bigger than any Nigerian port.

    “While we welcome the policy emphasis that has led to the creation of the Federal Ministry of Marine and Blue Economy, deliberate actions are necessary to incentivise and promote investment in the sector. Bureaucratic delays to securing project approvals, lack of regulatory transparency, and inter-agency rivalry instead of coordination have to be addressed. Bureaucratic red tape increases the cost of projects where it didn’t outrightly discourage investment,” they said.

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    The participants advocated that buying made-in-Nigeria goods is vital for growing and developing the local economy.

    “It must be part and parcel of the civic duty of all Nigerians. Government officials must go beyond the talk or simply making local content legislation; they need to match practice with policy by showing preference for Nigerian products and services. Like the Fly America Act stipulates, Nigerian public functionaries must fly Nigerian carriers for official international travels,” they said.

    They further agreed that market reforms are important, calling on Nigerian institutions to be rebuilt and equipped with the ethos and capacity to be values-driven, goal-oriented, and efficient.

    “The country also needs a coherent economic development agenda to boost long-term investment confidence. The essential factors for achieving this are good governance and public sector managerial leadership skills, which are crucial for effective resource management, policy implementation, building trust, and promoting unity,” they said.

    According to them, investment in health and education is a critical determinant of sustainable and equitable socio-economic development.

    “And each country has a health sector that reflects its level of investment in the sector. Regrettably, however, Nigeria’s investment in health and education has been lacklustre, resulting in poor development outcomes and insecurity. To correct course, the country must adopt people-centric approach to the governance of the health sector, begin to re-industrialise the sector to create jobs, and drive inclusive progress, as a means of fostering economic resilience and health security. The Federal Ministry of Health and Social Welfare is steering health policy in this direction,” they said.

    They agreed that the role of government in economic development is expansive as  it extends beyond “providing an enabling environment for business.”

     “It extends to provision of financing to enable Nigerian big businesses to grow bigger and expand into foreign markets, and effective and adequate support for small businesses to thrive. The country needs to focus on driving ‘holistic’ sustainability, which entails the fostering of economic growth, development, and transformation; institutional virility and performance; social equity; and environmental responsibility. Deliberate efforts should also be made to future-proof the economy by fostering progress and preventing retrogression,” they stated.

    According to them, climate change is not just a theory, as its impacts in Nigeria are practical and felt through irregular weather patterns, extreme weather events like flooding and excessive heat, receding surface water, among others.

    They said that conflicts induced by climate change in Nigeria are exacerbating insecurity, which is affecting agriculture and driving food insecurity.

    “A critical driver of herders-farmers clashes is lack of resettlement of displaced herder communities following the urbanisation in and around the Federal Capital Territory and other developments around the country that have taken over traditional grazing routes,” they said.

  • $5.4b venture capital enters Africa in 12 months

    $5.4b venture capital enters Africa in 12 months

    The African Private Capital Association (AVCA) Venture Capital in Africa report, showed that Africa attracted $5.4 billion venture capital and debt in 2023.

    The industry-leading annual report on venture capital performance in Africa is a comprehensive overview of Africa’s innovative ecosystem, providing critical insights into the sub-regions, countries, and sectors that have cemented Africa’s rising position as a region for venture capital (VC) activity. It provides an analysis of the latest trends and development of Africa’s start-up investment landscape and the profile of the investors active on the continent.

    The report said 2023 was a year of significant socio-political and economic upheaval, which led to a global funding winter that saw investors prioritise safer assets rather than VC investments. The global VC ecosystem has seen a steady global decline since 2022, falling to $285 billion in deal value last year, compared to $690bn in 2021.

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    The cumulative effect is a market size that represents 41 per cent of capital invested in 2021, signifying a contraction of venture funding around the globe in 2023.

    In response to these market headwinds, some trends in Africa’s VC ecosystem – which have remained relatively consistent year-on-year (YoY) – have been disrupted while other trends remained the same. For the first time in almost a decade of consistently strong growth, the number of venture capital deals in Africa decreased by 31 per cent YoY to 545 last year from the record-setting 787 deals struck in 2022.

    Added to the global downward trend of venture capital, investors faced currency volatility and continued high inflation in Africa, prompting investors to back prospects in portfolio companies with an established track record rather than new ventures.

  • CRC Credit Bureau unveils credit advisory, consulting service

    CRC Credit Bureau unveils credit advisory, consulting service

    CRC Credit Bureau has inaugurated the  Credit Advisory and Consulting Service (CACS).

    In a statement, the compnay said it was designed to provide tailored credit management solutions to individuals and businesses, CACS represents a significant milestone in CRC Credit Bureau’s commitment to empowering clients with the knowledge and strategies necessary to achieve financial wellness and business success.

    With the ever-evolving landscape of credit management, individuals, and businesses alike face challenges in navigating the complexities of credit assessment, monitoring, and improvement.

    Recognizing this need, CRC Credit Bureau has developed CACS to offer expert consultation services aimed at addressing the unique credit management needs of our clients.

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    “Our mission at CRC Credit Bureau is to empower individuals and businesses to make informed financial decisions and achieve their goals,” said Dr. ‘Tunde Popoola, Group Managing Director at CRC Credit Bureau. “With the launch of our Credit Advisory and Consulting Service, we are excited to provide personalized guidance and support to our clients on their journey towards financial stability and success.”

    CRC Credit Bureau’s Credit Advisory and Consulting Service (CACS) will offer comprehensive consultation packages tailored to suit the specific needs of both individuals and corporate entities. The service will include personalized assessments, actionable recommendations, and ongoing support over three months.

    With over a decade of experience, CRC Credit Bureau has emerged as the leading data company in the industry, catering to diverse information needs cutting across data and analytics, credit management and consulting services, financial education and training, and rental screening services. Our comprehensive range of products and services ensures that you have access to accurate information, enabling better strategic decisions.

  • GTBank Uganda transitions to Tier-2 credit institution

    GTBank Uganda transitions to Tier-2 credit institution

    Guaranty Trust Bank (Uganda) Ltd has announced its intention to transition from a Tier 1 Commercial Bank to a Tier 2 Credit Institution.

    This position has become necessary in view of the bank’s current paid-up share capital position of UGX 41 billion (approximately $11.02 million) and the recent increase in the minimum paid-up share capital requirement for Tier 1 Commercial Banks operating in Uganda to UGX 120 billion (approximatley $32.26 million) effective 31st December 2022, and subsequently to UGX 150 Billion (approximately $40.32Million) by 30th June 2024. 

    In November 2022, the Ministry of Finance, Planning and Economic Development in conjunction with the Central Bank of Uganda prescribed new thresholds for minimum paid-up share capital unimpaired by losses for Supervised Financial Institutions (SFIs) in Uganda. 

    Following extensive engagements with all stakeholders including the regulator and our shareholders, we believe that this is the right decision considering global economic realities and it is fully aligned with the objectives of our Holding Company -– “to direct resources to opportunities in alignment with our current strategy of evolving the Guaranty Trust Brand to a full-fledged Financial Services Group”.

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    Commenting on this development, Mr. Jubril Adeniji, Managing Director of Guaranty Trust Bank Kenya and Head of the East African region stated, “Continuing operations as a Tier 2 Credit Institution is within the Bank’s current capital base and will allow us play to our core strengths in Retail and SME Banking. As we make this transition, we will continue to review our positioning within the Ugandan banking sector in line with our objective of maximizing shareholder value.” 

    He further added; “As a Group, we are confident of Uganda’s trajectory as a country and remain committed to championing growth and expanding innovative financial services across Africa and will continue to explore viable opportunities in both existing and new business verticals that guarantee the best use of available capital.” 

    Given the foregoing, we have carried out a thorough review of our existing customer base and put adequate measures in place to continue to meet their banking needs pending final regulatory approvals and further directives by the relevant parties.

  • BetKing explains investigations on bettors’ video

    BetKing explains investigations on bettors’ video

    The management of SV Gaming Limited (BetKing) has finally opened up on a viral video where some bettors were sleeping in one of its agents’ shops in Owerri, Imo State.

    The video which was shared by popular musician Seun Kuti on Friday, March 22, generated massive reactions on social media.

    A statement shared by the gaming company on Wednesday, says it conducted a thorough investigation into the reported complaint regarding the viral video.

    The statement reads: “Following the investigation, it has been confirmed that the betting shop in question is owned by one of our Agents in Owerri, Imo state.

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    “This Agent usually operates late into the evening at his establishment, and this unfortunately attracts street vendors seeking shelter, particularly during adverse weather conditions.

    “While documented efforts have been made to engage local authorities to address this issue, some of the Agents’ cashiers have not been as vigilant in preventing street vendors from taking shelter at the shop.

    “We promptly instructed the Agent to implement stricter measures to prevent such incidents in the future. This includes the installation of video surveillance systems.

    “Failure to comply with these directives may lead to termination of the Agent’s contract with our company. Going forward, we are committed to actively monitoring the Agent’s adherence to these measures.

    “It is important to emphasize that BetKing Nigeria is dedicated to promoting public/consumer interests and ensuring compliance with regulatory laws,” the statement said.

  • Human Manager lists identity management role in financial inclusion

    Human Manager lists identity management role in financial inclusion

    Managing Director of HumanManager Ltd, a leading provider of Human Resources Management solutions in Nigeria, Adekunbi Ademiluyi has stressed the need for a well-defined Individual Identity Management System to achieve financial inclusion during the inaugural Nigeria Fintech and Financial Inclusion Roundtable.

    This pivotal event, held recently in Lagos, Nigeria, brought together a panel of esteemed experts to deliberate on the future of fintech and financial inclusion in Nigeria.

    Nigeria’s progress towards achieving financial inclusion has been marked by significant strides, yet the country still falls short of its ambitious goal of getting 95% of its population fully banked by 2024.

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    According to EFInA, a UK government-backed firm dedicated to deepening financial inclusion in Nigeria, the percentage of adult Nigerians with formal financial services – including bank accounts, insurance, and mobile money – rose to 64 per cent in 2023 from 56 per cent in 2020.

    However, only 52 per cent of Nigerians have a bank account, and widespread poverty in Africa’s most populous country continues to hinder more comprehensive adoption.

    Against this backdrop, the inaugural Nigeria Fintech and Financial Inclusion Roundtable was convened to explore innovative solutions and strategies for advancing financial inclusion in Nigeria.

    The event featured different Keynote speakers and panellists including Ms. Adekunbi Ademiluyi, Managing Director of HumanManager Ltd.; Dr Agada Apochi, Group Managing Director and Chief Executive Officer, Unified Payment Services Limited; Mrs. Joy Utubo, Head of Group Communications, Security Exchange Commission; and Alhaji (Dr) Umaru Kwairanga, Group Chairman, Nigerian Exchange Group.

  • Olam Agri, Finance Minister meet on food security

    Olam Agri, Finance Minister meet on food security

    Olam Agri in Nigeria, an agribusiness in food, feed and fibre has reaffirmed its commitment to helping Nigeria achieve food security.

    The company made the pledge during a recent meeting with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

    The meeting which is part of the agribusiness strategic engagements with critical stakeholders had in attendance the Managing Director of Olam Agri in Nigeria, Anil Nair, the Chairman of Federal Inland Revenue Service, Zacchaeus Adedeji, the Accountant General of the Federation Oluwatoyin Sakirat Madein, and the Director Corporate & Regulatory Affairs Olam Agri, Ade Adefeko.

    The latest engagement came on the heels of a courtesy visit to the Vice President of the Federation, Sen. Kashim Shettima (GCON), and a tour of the agribusiness rice farm and mill by the Honourable Minister of Agriculture and Food Security, Sen. Abubakar Kyari.

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    Speaking during the meeting, the Minister of Finance and Coordinating Minister of the Economy, implored Olam Agri to leverage its impressive scale with presence in the Rice, Sesame, Animal and Fish Feed, Wheat Milling value chains as well as biscuits confectionery and culinary product manufacturing.

    He spoke on government reforms to curb inflation, particularly food inflation, and called on the agribusiness to continue deploying its scale, global expertise, and deep resources to engender wider access to quality food and nutrition to the teeming population in a bid to achieve food security.

    In response, the Managing Director of Olam Agri in Nigeria, Anil Nair, said, “Our commitment to driving food security is evidenced by the sprawling investments we keep making to raise productivity in the rice, animal feed and protein, wheat and flour milling, sesame, and edible oils value chains. We consistently scale this investment as well, as we expand involvement in various out-grower programmes, research & development, partnerships, collaborations, and the integration of smallholder farmers into various empowerment initiatives for the betterment of Nigeria.”