The Nation Newspaper

Category: Money

  • Naira depreciation supporting businesses to adapt, says expert

    Naira depreciation supporting businesses to adapt, says expert

    Naira fluctuations due to reforms , which have weakened the purchasing power of consumers, have prompted businesses to adapt to local content, Chief Strategy Officer of Retail Supermarkets Nigeria Limited, Bunmi Adeleye, has said.

    Retail Supermarkets Nigeria, owners of Shoprite Nigeria, was recently acquired by Persianas Investment Limited and other key institutional investors, making it a fully Nigerian-owned business that contributes to the country’s economy and provides employment opportunities for its citizens.

    In an interview in Lagos, Adeleye explained that “despite the challenges posed by the naira depreciation, Retail Supermarkets Nigeria has maintained its high-quality products and services for its customers and plans to open more stores that showcase a wide variety of Nigerian-made products and international brands”.

    Adeleye explained that like any retail business operating in a continually evolving economic landscape, Retail Supermarkets Nigeria face various challenges, including naira depreciation.

    “While the increased costs of importing goods and supply chain disruptions pose challenges, the depreciation of the naira has also created opportunities for growth and localization. Despite efforts to remain competitive, we have adjusted prices to reflect the increased costs, potentially affecting customer purchasing power,” she explained.

    Adeleye explained that the company has faced various challenges such as increased costs of importing goods, supply chain disruptions, and product availability due to naira depreciation. However, the company has implemented robust procurement strategies, strengthened local supplier relationships, and focused on sourcing products locally to mitigate challenges and support the economy.

    “To overcome the challenges posed by naira depreciation, we have implemented robust procurement strategies, strengthened local supplier relationships, and focused on sourcing products locally to mitigate challenges and support the economy. It also catered for diverse purchasing powers and promoted affordability through promotions and discounts,” she added.

    She disclosed that the company is actively exploring opportunities to expand its business operations to better serve communities and provide convenient access to quality products while fostering economic growth and development. To stay ahead of the competition, the company has adopted various strategies such as a strengthened value proposition, enhanced customer experience, efficient supply chain management, technology integration, local sourcing, and continuous innovation.

     “We are considering innovative solutions tailored to the specific needs of customers. We aim to provide convenient access to quality products while fostering economic growth and development,” she said.

    On competition in the industry, Adeleye emphasized its importance for growth and market development. The company has adopted strategies such as a strengthened value proposition, enhanced customer experience, efficient supply chain management, technology integration, local sourcing, and continuous innovation. Shoprite keeps up with the latest trends to offer relevant and useful products. It trained the staff to provide better customer service and utilised technology to gain insights into customer preferences and optimise operations.

    The company is actively exploring opportunities to expand its business operations to better serve communities and provide convenient access to quality products while fostering economic growth and development. To stay ahead of the competition, the company has adopted various strategies such as a strengthened value proposition, enhanced customer experience, efficient supply chain management, technology integration, local sourcing, and continuous innovation.

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    Adeleye believes that competition in the retail industry is essential because it helps the industry grow and improve. To stay ahead of the competition, the company has adopted strategies such as a strengthened value proposition, enhanced customer experience, efficient supply chain management, technology integration, local sourcing, and continuous innovation. The company has partnered with local suppliers and distributors, providing quality products, fresh fruits and vegetables, ensuring everyday low prices, and easily accessible stores while monitoring industry trends and consumer needs to ensure that offerings remain relevant.

    Overall, she noted that the retail industry in Nigeria is thriving and presents good investment opportunities for those interested.

    “Retail Supermarkets’ success in adapting to the local market is a testament to the opportunities available for businesses in Nigeria,” she added.

  • Report: AMCON MD’s ERM experience key in debt recovery

    Report: AMCON MD’s ERM experience key in debt recovery

    The newly appointed Managing Director of Asset Management Corporation of Nigeria (AMCON), Gbenga Alade’s experience as an enterprise-wide risk management professional will be vital to his success at the asset company, financial sector experts have said.

    In a report released yesterday, industry experts said with certification in Enterprise Risk Management (ERM), the new AMCON boss will be deploying the much-needed knowledge for motivating AMCON towards exploring alternative strategies that include debt-equity swaps and effective legal procedure for timely retrieval and management of debts.

    Alade, they said is aware of the challenges before him and expectations  from stakeholders across the board.

    Raheem Ajayi, a risk management expert based in Abuja, said:

    “He recognizes the onerous responsibility of delivering on the critical mandate of cleaning the financial system by acquiring the non-performing loans from banks and other eligible financial institutions (EFIs). The new man at the saddle at AMCON can be trusted to ensure efficient management and accountable disposal of acquired assets to optimize returns and contribute to the overarching objectives of the Renewed Hope Agenda of President Tinubu to make the Nigerian economy stronger and viable”.

    Another industry expert, Miachel Adigun, said AMCON under the new leadership is expected to change the narrative of recurring debt evasion debtors and penchant for dubious technicalities to frustrate asset recovery.

    “The new AMCON has requisite experience and the know-how to make AMCON become an accelerated debt recovery corporation considering his track-record. While at the Bank of Montreal (2006 – 2009), the new AMCON chief was part of a team that implemented Base 2 capital accord and developed metrics for enterprise risk reporting,” he said.

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    Alade’s knowledge and skills in risk management and governance control process  was brought to bear while serving as the Managing Director and Chief Executive Officer of Guaranty Trust Bank in Sierra Leone.

    He is reputed to have managed the Bank to become number one in Sierra Leone in terms of service delivery and profitability which earned the bank four consecutive Best Bank Award in Sierra Leone for 2014, 2015, 2016 and 2017. Mr. Alade won the Bankers’ CEO award in 2014, 2015 and 2016.

    “ AMCON is expected to be more strategic and effective by collaborating with other agencies and by exploring alternative dispute resolution mechanisms as well as strengthening legal frameworks. There is no doubt that stakeholders anticipate that the pedigree of the new AMCON chief executive would help prevent the accumulation of non-performing loans which often necessitate fostering of risk management regimes within the banking sector through responsible lending and effective enforcement of regulations,” Adigun said.

  • Access Holdings boosts growth with markets expansion

    Access Holdings boosts growth with markets expansion

    Access Holdings’ expansion from various parts of Nigeria into Angola, Botswana, Cameroon, the Democratic Republic of Congo, Gambia, Ghana, Guinea, Kenya, Mozambique, Rwanda, Sierra Leone, South Africa, Tanzania, and Zambia was to drive growth.

    In a statement, the company said it strategically ventured into new territories, bringing its expertise, resources, and innovative solutions to areas with immense growth potential. Its foray into South Africa marked a significant milestone, as Access Holdings became a pioneer in extending its footprint beyond its home base.This strategic move exemplifies the company’s vision to be a pan-African force, contributing to economic development across borders.

    Access Holdings has expanded its physical presence and engaged with local economies, forging partnerships and collaborations that stimulate growth.

    Through its subsidiaries, the institution has played a pivotal role in sectors ranging from finance and banking to agriculture, technology, and healthcare, bringing diverse opportunities to the communities it serves.

    In countries where Access Holdings has established a presence, the institution has become a driving force for job creation and entrepreneurship. Access Holdings has sown the seeds of sustainable economic development by supporting small and medium enterprises (SMEs), investing in local businesses, and providing financial solutions tailored to the needs of each market.

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    The company’s ability to adapt its business model to the unique dynamics of each African market sets it apart. Access Holdings recognises that Africa is not a monolithic entity but a collection of diverse economies with distinct challenges and opportunities. Through its expansion strategy, the institution tailors its approach to address the specific needs of each region, contributing to a more inclusive and holistic development across the continent.

    Access Holdings’ commitment to responsible business practices is evident in its expansion efforts. The institution actively engages with local communities, embracing cultural diversity and incorporating sustainable practices into its operations. This approach fosters positive relationships and ensures that economic development is aligned with the principles of social and environmental responsibility.

    As Access Holdings charts new territories, the institution continues to drive economic growth and development in Africa. Expanding its reach, fostering local partnerships, and contributing to diverse sectors continue to drive positive change and progress across the continent. The diversified holdings company’s strategic expansion initiatives have positioned it as a key player in fostering progress and unlocking opportunities in previously untapped markets. As Access Holding continues its journey of expansion, it is poised to leave a lasting impact, unlocking potential and shaping a brighter future for the diverse nations that make up the vibrant tapestry of Africa.

  • Stanbic IBTC to extend more loans to businesses

    Stanbic IBTC to extend more loans to businesses

    Stanbic IBTC Bank has reiterated its commitment to extending more loans to businesses in key sectors of the economy.

    Speaking at Stanbic IBTC Bank’s inaugural healthcare breakfast, Chief Executive, Stanbic IBTC Holdings Plc, Dr. Demola Sogunle, said the event was opportunity for the bank to connect innovators, disruptors, and change-makers that are shaping Nigeria’s healthcare landscape and growth in the sector.

    Speaking on the theme: “The Business of healthcare: Challenges and opportunities,” Sogunle said in the spirit of driving Nigeria’s growth, Stanbic IBTC Bank has continued to avail credit to healthcare entities, thereby supporting hospitals, pharmaceutical firms, HMOs, and diagnostics centers nationwide.

    He expressed the bank’s passion for wellness in the communities it serves, and will continue to throw its weight behind the health sector in Nigeria.

    Sogunle advised healthcare providers to explore the bank’s tailored offerings that are designed to fuel their aspirations. “We are confident that technology and financing innovation can improve healthcare access, even in the face of macro challenges. We are committed to supporting your visions,” he said.

    “Together, let us advance Nigeria’s journey to universal health coverage, improve standards of living, as well as reduce outbound expenditures that arise from medical tourism, as we unearth opportunities for collaboration and strengthen the healthcare value chain for sustainable progress,” he stated.

    Speaking on the theme: “Strategic partnerships: Catalysts for transforming Nigeria’s healthcare sector”, Managing Director/CEO, JNC International Limited, Clare Omatseye, said the healthcare sector has faced several challenges, which have been exacerbated by rising costs, changing demographics, shortage of clinicians and healthcare professionals, quality of care and transparency in practices, access to finance, access to healthcare services and patient centricity are considered major challenges that impact healthcare industry today.

  • ‘AMCON, Afreximbank, others aided Geometric Power funding’

    ‘AMCON, Afreximbank, others aided Geometric Power funding’

    Chairman, Geometric Power Group, Prof. Barth Nnaji has said  the Asset Management Corporation of Nigeria (AMCON), Afreximbank, the Central Bank of Nigeria (CBN), and some domestic commercial banks facilitated the funding for the Geometric Power Plant project.

    The 181-megawatt Geometric Power Plant, in Osisioma Local Government Area of Aba, Abia State was inaugurated yesterday in Aba, Abia State. The event was attended by Vice President Kashim Shettima and the Abia State Governor Dr Alex Otti, among others.

    During a joint media parley, Nnaji hosted with AMCON’s Group Head of Enforcement, Joshua Ikioda, he highlighted the critical and strategic role played by the management of AMCON, and other lenders towards the completion of the mega project that would supply uninterrupted power to the nine Local Government Areas of Abia and its environs.

    Nnaji said: “We started this project when Nigerian banks could not lend to the power sector.  But AMCON along the line bought part of the debt of the banks, while the Central Bank of Nigeria (CBN) through the Power and Aviation Intervention Fund managed by the Bank of Industries (BoI) also provided further funds to the project of which the two banks took up the credit risk.”

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    He appreciated the CEO of AMCON for his steadfastness, encouragement, and integrity.

    Also, Ikioda said: “AMCON along the line had fears, apprehensions, and concerns. As investors, we took a risk. And when an investment is made, and it is not bringing you money or returns, you begin to have apprehension. But we stood in faith, believing that this was a viable project that can change the face of not just Aba and this environment but the country. Most importantly, we must commend Prof. Nnaji because even in the face of daunting challenges, he was very focused. He was very tenacious. That gave AMCON courage, and hop.

    “As investors, what is important is for us to give a funding structure that will not choke the project. We are Nigerians, we have Nigerian blood flowing through our system. So, we have to see Prof. Nnaji through. We are quite excited to be part of history and it is from that position that our support is total. This is Act 1, Scene 1. We are still going into different phases, and it is our determination to stand with him and see this project through, to better the lot of Nigerians.” he stated.

  • NDFF forum to discuss road to economic transformation

    NDFF forum to discuss road to economic transformation

    The Nigeria Development and Finance Forum (NDFF) 2024 Conference, a high-level gathering of public, private, social, and international sector leaders, will hold on the 8th and 9th of May 2024 at the Transcorp Hilton, Abuja, a statement by the organiser, Financial Nigeria International Limited, has revealed.

    Themed “The Road to Economic and Social Welfare Transformation,” NDFF 2024 Conference aims to provide a strong backing for a holistic and transformative reform agenda for the Nigerian economy. The conference will feature plenary sessions on Day 1, focusing attention on the three main areas the Federal Government aims to deliver impacts, viz., fiscal policy, monetary policy, and social welfare. Special briefings and industry-focused sessions will hold on Day 2.

    According to Jide Akintunde, CEO of Financial Nigeria and Convener of NDFF, “Over the past months, the new government has embarked on market reforms, which many stakeholders have canvassed for in the last few years to catalyse long-term economic growth and stability. In the short term, however, the introduction of market reforms has resulted in economic difficulties for many Nigerians.” Notwithstanding, Mr. Akintunde said “this policy pivot can help put the economy on the path of long-term stability, sustainable growth, and transformation. But there is an urgent need for adequate clarity and complementary policies to bolster investor and market confidence, and provide much-needed comfort for the citizens.”

    The CEO of Financial Nigeria added that “NDFF 2024 Conference will provide actionable insights on how to navigate this road to transformation. The conference is strategically timed to hold close to the first anniversary of the President Bola Ahmed Tinubu administration, providing a major platform for support of the government and a structured interface with industry leaders, civil society leaders, academics, and leaders of international institutions. The overarching aim of the conference is to provide clarity on how Nigeria and Nigerians will transition from the current acute economic, market, and social welfare stress to stability, growth, and progress.”

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    According to a statement by Financial Nigeria, some of the topics for keynote presentations and panel discussions slated for Conference Day 1 include The Road to Economic and Social Welfare Transformation; Macroeconomic and Financial Stability: Communicating the Outlook; Revitalising Industries and Markets; and Transforming Nigeria’s Population Health: Crowding in Policy, Market, and Social Actions. For Conference Day 2, the Planning Group for NDFF 2024 Conference is working with stakeholders and sponsors to host special sessions on the Green Economy and the Blue Economy, as well as showcase the reform agenda and investment opportunities in at least two states of the Federation.

    The line-up of keynote speakers and high-level panellists for the conference includes eminent Nigerians from the public, private, and social sectors. Also expected to speak at the event is a world-renowned economist from the United States, to be announced soon, to provide global perspectives to the discussions.

    The website for the conference is where information on confirmed speakers, partners, and sponsors will be updated. On the site is also information on registration and sponsorship for the event.

    Originally conceived to provide briefings to international investors, the global policy community, and Nigerians in diaspora on the Nigerian policy and investment climate and opportunities, the NDFF Conference is holding in Nigeria in 2024, and in the coming years, to address domestic policy issues and attract international participation in Nigeria. Past editions of the conference have successfully held in London, New York, and Washington DC.

  • NIMASA’s modular floating dock for installation

    NIMASA’s modular floating dock for installation

    • By Oluwakemi Dauda

    The Nigerian Maritime and Safety Administration (NIMASA) said yesterday that it has commenced preparations to deploy the multi-million dollar modular Modular Floating Dock for installation by moving the facility to a jetty at the Standard Flour Mills in Apapa.

     It was gathered that the agaency did this in preparation for its movement to the scheduled operational base at the Continental Shipyard, Apapa.

    NIMASA, in a statement signed by its image maker, Edward Osagie, said the 50-ton cylindrical spuds, which are for anchoring the dock were being prepared for installation.

     “We are moving slowly but steadily to our destination. Today, we are lifting out the cylindrical spuds to be prepared for piling at the Continental Shipyard, where the floating dock is scheduled to commence operations.

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    “These spuds have to be firmly installed before we can tow the floating dock there. We assure stakeholders that very soon, Nigeria will save foreign earnings with the commencement of operations at our dock.”

    The Nigerian Ports Authority (NPA) had leased designated areas at the Continental Shipyard for the operations of the Modular Floating Dock last year.

    The areas include the Dolphin Jetty, the waterfront of the jetty adjourning the slipway, an administrative block, a construction, welding, and mechanical workshop, and a civil maintenance workshop, among others.

    The project, it was gathered, would be run under a public-private partnership (PPP) arrangement.

  • Transcorp Hilton Abuja gets recognition

    Transcorp Hilton Abuja gets recognition

    Transcorp Hilton Abuja, Nigeria’s premier hospitality destination and flagship property of Transcorp Hotels Plc has won the Booking.com Traveller Review Awards 2024.

    The award underscores the hotel’s unwavering commitment to providing exceptional service and creating memorable experiences for guests.

    The Booking.com Traveller Review Awards recognise properties that consistently deliver outstanding hospitality, as voted by guests who have experienced their services first hand.

    Dupe Olusola, Managing Director/CEO of Transcorp Hotels Plc, expressed her delight at the recognition, stating, “We are thrilled to receive the Booking.com Traveller Review Awards for yet another year. This achievement is a testament to our team’s relentless dedication to providing unparalleled hospitality and ensuring that every guest feels welcomed and valued.”

    She stressed that the award is a motivation to raise the bar even higher and consistently deliver exceptional experiences that exceed expectations.

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    Transcorp Hilton Abuja is owned by Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group. Transcorp Hotels’ commitment to its mission to redefine hospitality in Africa through innovation and exceptional service.

    The company has continued to rake in recognition and awards in 2024 having ended the past year with an impressive 12 awards, including five World Travel Awards and two Seven Stars Luxury and Lifestyle Awards, among others.

    In his comments, Glenn Fogel CEO of Booking.com stated: “We know how much effort you put in to make every guest’s stay magical. You and your team do much more than just provide a place to sleep: your hospitality makes the world a friendlier, more welcoming place. We’re proud to partner with you – and I look forward to growing together in 2024 and beyond.”

    The hospitality brand is developing a world-class event centre in Abuja that will cater to both social and corporate events. The 5,000-capacity arena is scheduled to open in the first half of 2024. Also, Transcorp Hotels is set to exploit the hospitality and tourism potential of Lagos, Nigeria’s commercial capital, with a 315-room five-star property in the heart of Ikoyi soon to join the hospitality brand’s assets.    

  • Report: Debt servicing costs $443.5b in developing economies

    Report: Debt servicing costs $443.5b in developing economies

    Amid the biggest surge in global interest rates in four decades, developing countries spent a record $443.5 billion to service their external public and publicly guaranteed debt in 2022, the World Bank’s International Debt Report shows. The increase in costs shifted scarce resources away from critical needs such as health, education, and the environment.

    Debt-service payments—which include principal and interest—increased by 5 percent over the previous year for all developing countries. 

    The 75 countries eligible to borrow from the World Bank’s International Development Association (IDA)—which supports the poorest countries—paid a record $88.9 billion in debt-servicing costs in 2022. 

    Over the past decade, interest payments by these countries have quadrupled, to an all-time high of $23.6 billion in 2022. Overall debt-servicing costs for the 24 poorest countries are expected to balloon in 2023 and 2024—by as much as 39 percent, the report finds.

    “Record debt levels and high interest rates have set many countries on a path to crisis,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “Every quarter that interest rates stay high results in more developing countries becoming distressed—and facing the difficult choice of servicing their public debts or investing in public health, education, and infrastructure. The situation warrants quick and coordinated action by debtor governments, private and official creditors, and multilateral financial institutions—more transparency, better debt sustainability tools, and swifter restructuring arrangements. The alternative is another lost decade.’’

    It said that surging interest rates have intensified debt vulnerabilities in all developing countries. In the past three years alone, there have been 18 sovereign defaults in 10 developing countries—greater than the number recorded in all of the previous two decades. Today, about 60 percent of low-income countries are at high risk of debt distress or already in it.

    Interest payments consume an increasingly large share of low-income countries’ export, the report finds. More than a third of their external debt, moreover, involves variable interest rates that could rise suddenly. Many of these countries face an additional burden: the accumulated principal, interest, and fees they incurred for the privilege of debt-service suspension under the G-20’s Debt Service Suspension Initiative (DSSI). The stronger US dollar is adding to their difficulties, making it even more expensive for countries to make payments. Under the circumstances, a further rise in interest rates or a sharp drop in export earnings could push them over the edge.

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    As debt-servicing costs have climbed, new financing options for developing countries have dwindled. In 2022, new external loan commitments to public and publicly guaranteed entities in these countries dropped by 23% to $371 billion—the lowest level in a decade. Private creditors largely abstained from developing countries, receiving $185 billion more in principal repayments than they disbursed in loans.

    “Knowing what a country owes and to whom is essential for better debt management and sustainability,” said Haishan Fu, Chief Statistician of the World Bank and Director of the World Bank’s Development Data Group. “The first step in avoiding a crisis is having a clear picture of the challenge. And when problems arise, clear data can guide debt restructuring efforts to get a country back on track towards economic stability and growth. Debt transparency is the key to sustainable public borrowing and accountable, rules-based lending practices which are so vital to ending poverty on a livable planet.”

    The report notes that IDA-eligible countries have spent the last decade adding to their debt at a pace that exceeds their economic growth—a red flag for their prospects in the coming years. In 2022, the combined external debt stock of IDA-eligible countries hit a record US$1.1 trillion—more than double the 2012 level. From 2012 through 2022, IDA-eligible countries increased their external debt by 134 per cent, outstripping the 53 per cent increase they achieved in their gross national income (GNI).

  • AfDB okays $750m subordinated capital notes

    AfDB okays $750m subordinated capital notes

    The African Development Bank has successfully launched and priced its first Sustainable US dollar-denominated 750 million perpetual subordinated hybrid capital notes.

    The largest share of the allocation was taken up by Hedge / Specialised funds (54.8%), followed by Asset Managers (27.8%), Central Banks and Official Institutions (6.7%), Pension Funds / Insurance (6.6%) and Banks / Private Banks (4.1%). Demand came mainly from the UK (51.1%), followed by EMEA (26.5%), Asia (14%) and Americas (8.4%).

    This is the first sustainable hybrid capital issuance by a multilateral development bank, marking the African Development Bank’s pioneering role in optimizing its balance sheet in line with the G20 Capital Adequacy Framework (CAF) recommendations to boost lending capacity. Hybrid capital is an innovative form of capital which increases sustainable lending capacity.

    The Bank mandated BNP Paribas and Goldman Sachs International as Joint Structuring Agents and Barclays, BNP Paris, BofA Securities and Goldman Sachs International as Joint Bookrunners to lead manage its new Perpetual Non-call (PerpNC) 10.5-year inaugural USD Global SEC-exempt Sustainable Hybrid transaction.

    African Development Bank Vice President for Finance and Chief Financial Officer Hassatou N’Sele said the move followed close monitoring of the market since the institution’s roadshow last September, to generate interest in the bond.

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    “This landmark transaction was received with marked enthusiasm by a broad range of investors. It paves the way for the African Development Bank and other AAA-rated Multilateral Development Banks to further leverage their capital base and increase their support to Africa and the developing world, who are facing multiple crises and long-term development challenges, in a context of constrained development resources.”

    Omar Sefiani, Bank Group Treasurer said: “We saw tremendous interest from over 275 investors resulting in a record order book for the AfDB. The outstanding success of this transaction allows the African Development Bank to demonstrate that MDBs can tap the private investor market to supplement their capital base and therefore allow incremental sustainable lending to their clients.”