The Nation Newspaper

Category: Money

  • Jalo-Waziri becomes CIS Fellow

    Jalo-Waziri becomes CIS Fellow

    Managing Director, Central Securities Clearing System (CSCS) Plc, Haruna Jalo-Waziri, has been elevated to a Fellow of Chartered Institute of Stockbrokers by the institute’s Board of Fellows .

    In his welcome address , the President and Chairman of the Institute’s Governing Council, Mr Oluwole Adeosun, who paid glowing tributes to Jalo-Waziri’s professional contributions to market development, explained the modalities for attaining the exalted position of Fellowship.

    “ As an important background , I need to explain that full membership of CIS begins at the Associate Level , while Fellowship is the highest category. To be a Fellow, a member must in addition to professional excellence, pass the moral and integrity tests with flying  colours. Our investee of today (Jalo-Waziri)  has done just that.

     “ Jalo is the Chief Executive Officer of Nigeria’s premier financial market Infrastructure company, the Central Securities Clearing Systems (CSCS) Plc, which provides depository, clearing and settlement of financial assets across multiple Exchanges in the Nigerian Capital Market.

    “ He is a consummate professional with executive experience spanning close to three decades, in Investment Banking, Securities Trading, Pension Funds Administration and conventional Asset Management, Business Development, Capital Trade Point and Capital Market Regulation. He  has also garnered significant Board experience across his career having served and still serving on the Boards of several companies.”, says Adeosun.

    Adeosun stated that stockbrokers had contributed immensely to the growth and development of the economy in general and the capital market in particular saying:

    “The success of the banking sector recapitalization exercise of 2005 -2007, was essentially due to the analytic and marketing formation work, done by Nigerian Stockbrokers. The Equity Market has been a source of sustainable wealth creation for individuals and corporate institutions across the country, consistently outperforming the rest of the economy, while proving to be a reliable hedge against inflation. The work of Chartered stockbrokers has therefore contributed significant key to GDP growth and economic development in Nigeria.

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    Responding to his Investiture, Jalo-Waziri appreciated the Institute for the honour and pledged to uphold its ethics that are rooted in the highest level of professional standard by global metrics.

    “It is a tremendous honor to be recognized by an esteemed institution that aims to uphold the highest standards of excellence and ethics in the Nigerian Capital Market and the

    global financial services industry. I am truly humbled by this distinction and pledge to continue to uphold the principles and values that the institute stands for such as professionalism, integrity, and accountability.

    This honour is not just a personal recognition, but a testament to the collective efforts and support of many individuals and organizations who have been instrumental in my professional journey. I hope I can pay it forward as I enrich and shape the professional trajectory of our successors in the field. “, he said .

    The historic event attracted many of the Institute’s members of the Board of Fellows. chief executive officers of many stockbroking firms and captains of industries and Jalo-Waziri’s wife Maimuna.

  • N10tr intervention funds: Banks activate debit orders on chronic debtors

    N10tr intervention funds: Banks activate debit orders on chronic debtors

    The Central Bank of Nigeria (CBN) and banks are taking major steps to get debtors pay back their loans. To achieve this, the apex bank and banks are activating the Global Standing Instruction (GSI) to debit accounts of loan defaulters in any bank within Nigeria to recover their debts. The GSI has become a game changer to recover huge outstanding debts from the over N10 trillion intervention funds disbursed to borrowers, reports Assistant Business Editor, COLLINS NWEZE.

    It was a busy Tuesday afternoon in Lagos. Business executives and entrepreneurs  were rushing to beat the usual traffic on the Third Mainland Bridge, which separates the Lagos mainland from the Island.

    For Managing Director/CEO, Busyday Merchants   Limited, Silas Stevens, getting to his banker at Ikoyi, Lagos before 10. 00am was priority for two reasons.

    He needed to discuss N1 million un-authorised debit on his account the previous day. Next was to  stop his clients from making further payment into the account till further notice.

    Stevens is one of the several business owners whose accounts were flagged by the Central Bank of Nigeria (CBN) for borrowing and not being able to meet loan payback conditions.

    Intervention funds

    CBN Governor, Dr. Olayemi Michael Cardoso, said over N10 trillion has been loaned to customers under the intervention funds scheme. 

    According to CBN data, between September and October 2022, under the Anchor Borrowers’ Programme (ABP), the Bank disbursed N41.02 billion to several agricultural projects.

    The cumulative disbursement under the Programme amounted to N1.07 trillion to over 4.6 million smallholder farmers cultivating 21 commodities across the country.

    The apex bank also disbursed N300 million to finance large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS), bringing the cumulative disbursement to N745.31 billion.

    It released the sum of N48.30 billion under the N1 trillion Real Sector Facility to seven new real sector projects in agriculture, manufacturing, and services. Cumulative disbursement under this Facility currently stands at N2.15 trillion to 437 projects across the country.

    The breakdown of the disbursement in the Real Sector Facility includes projects in manufacturing (240), agriculture (91), services (93) and mining sector (13).

    Under the 100 for 100 Policy on Production and Productivity (PPP), the bank disbursed the sum of N20.78 billion to nine (9) projects in healthcare, manufacturing, and services, amounting to a cumulative disbursement of N114.17 billion across 71 projects.

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    A sum of N4 billion was disbursed under the Intervention Facility for the National Gas Expansion Programme (IFNGEP) to promote the adoption of compressed natural gas (CNG) for transportation and liquefied petroleum gas (LPG) for cooking.

    World Bank: Developing economies under pressure

    Loan default is sometimes linked to economic downturn. The World Bank said private sector in Nigeria and other developing countries are shrinking under intense pressure.

    World Bank Group said a third of developing countries have had a hike interest rates and the private sectors in such countries has continued shrinking.

    Malpass said COVID-19 and the shutdowns are still taking a huge toll, especially on people in the poor countries.

    “In the new GEP, the World Bank is lowering our global growth forecast to 4.1 per cent for 2022. That’s down two-10ths of a per cent from the June GEP and growth was 5.6 per cent in 2021,” it said.

    GSI guidelines amended for action

    The CBN has amended the guidelines on GSI. The GSI is a policy that allows banks to debit the accounts of loan holders in other banks to settle defaults.

    In a circular, ‘Re: Global Standing Instruction (GSI) – Individuals’ the apex bank said the frequency of recovery attempts via the GSI platform will be continuous and unrestricted.

    “Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to continuous and unrestricted,” the circular reads.

    “In other words, the GSI automated loan recovery feature applicable to all loans in the industry will henceforth remain perpetually in place throughout the life of the loan and/or until the loan is fully repaid.”

    The CBN said the initiative was conceived to address the recurring instances of willful loan default in the industry to identify and watch-list recalcitrant loan defaulters; enhance recovery from eligible and funded accounts in the industry, and improve credit repayment culture.

    The GSI became operational in August 2020 as part of efforts to reduce the rate of non-performing loans (NPLs) in the banking sector.

    SI policy implementation thickens

    Analysts said many banks expanded their loan base following the CBN’s directive. The banks have got its backing and are also relying on the GSI policy to recover their funds despite losses caused to businesses by the pandemic.

    President, Bank Customers Association of Nigeria, Uju Ogubunka,  said the scourge of bad loans had been a long standing menace to the sector.

    According to him, the issuance of the GSI policy marks a new dawn in credit management and debt recovery processes.

    The CBN said the operationalisation of the exercise requires borrowers to sign a GSI mandate in hard copy or digital form, after which qualifying accounts are linked to the borrower’s  Bank Verification Number (BVN).

    It added that the GSI mandate form authorises the recovery of an amount specified by the bank from any/all accounts maintained by the borrower across all financial institutions. The GSI empowers banks and other financial institutions to debit accounts of chronic loan defaulters in any bank within the country to ease NPLs growth in the country.

    The CBN’s move to get banks to lend more is significant because over the past two years we’ve seen banks develop apathy in terms of credit creation, which has hampered domestic growth.

    “GSI is what we have been looking forward to as a coordinated approach to addressing the NPL issue in the banking industry. You will agree with me that banks’ failure is not ordained, it’s just the behaviour of what we have. So, culture is a very big issue to credit; we need to address it,” the apex bank said.

  • Accounting firm marks anniversary

    Accounting firm marks anniversary

    An accounting firm, Kreston Pedabo, has been acknowledged by government, tax experts, and industry leaders for its commitment to excellence and professionalism.

    The endorsements came during a programme in Lagos to market its 25 years of operation. 

    Executive Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, Federal Inland Revenue Service (FIRS), Institute of Chartered Accountants of Nigeria and other leading industry leaders lauded the contribution of Kreston Pedabo to industrial growth.

    Insisting that the firm exemplifies a foundation of excellence, integrity and hard work, the industry players,  said businesses would do well in Nigeria if they build on strong foundations. 

    Founded by Ajibade Fashina and Albert Folorunsho, Pedabo specialises in tax, auditing and advisory. 

    Managing Partner, Kreston Pedabo, Ajibade Fashina, Chairman and Founder, Elizade Motors; Michael Ade-Ojo, Managing Consultant, Kreston Pedabo; Albert Folorunsho, Chief Executive Officer of Access Bank, Herbert Wigwe while speaking at a symposium organised to mark the silver jubilee insisted that Nigerians must look beyond themselves when building businesses.

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    Speaking at the event that saw the accounting firm rebrands into Kreston Pedabo, Oyedele, who revealed that he started his career at the firm, noted that the level of professionalism that marked the foundation of the organisation if replicated by other companies, would enable the country build trans-generational businesses that would end up on the global stage.

    Oyedele also noted that the priority by the organisation on staff welfare and development remained critical to sustainable growth both in the public and private organizations.

    President of the  Institute of Chartered Accountants of Nigeria (ICAN), Dr Innocent Okwuosa said the firm has not only demonstrated proficiency in the accountancy and advisory services but has also consistently raised the bar for professionalism and client satisfaction.

    “Your contributions to the business landscape, your role in shaping the future of the accountancy profession, and your commitment to fostering a culture of collaboration and innovation are truly commendable,” Okwuosa said.

    Ade-Ojo, who asked business owners to choice the firms that they would entrust services wisely, noted that the choice of wrong and incompetent service providers could jeopardize businesses.

    He disclosed that he had worked with Pedabo over the years only because the organisation was able to justify value for money. 

    Ajibade, who noted that accounting has come to stay and would continue to improve noted that technology such as Al and the blockchain, creates a lot of potential to be harnessed in the short and long term.

    Disclosing that Pedabo is positioned to champion a lot of innovation and best practices in that line in the coming years, said the company surmounted challenges that crippled other firms because of the determination strong value system and determination to not only do the right things but also do things right. 

    Folorunsho disclosed that the company started from a firm of two young partners and one employee but has grown to 10 partners and over 170 employees.

    He noted that the company would among the top three accounting firm in Nigeria in the next 25 years, stressing that the rebranding of the company to join Kreston network would enable the company to offer better services and improve the economy of the country.

    Similarly, Co-Founder/ Chief Executive Officer, Tomato Jos Farming and Processing Limited, Mira Mehta; Triumph Power and Gas Systems Limited; Bolaji Ososami; Managing Director/ Chief Executive Officer, Unified Payments Services Limited; Agada Apochi, Executive Chairman, Lagos State Internal Revenue Service;  Ayodele Subair, Head of Department, Telecommunications and Broadcast Department representative of Zaach Adedeji, Executive Chairman, Federal Inland Revenue Service, Olusegun Sosimi noted the need for knowledge, relationship, interest in developing strong workforce that must be allowed to thrive and courage to take calculated risks despite the country’s challenges.

  • Stakeholders to chart path for financial markets

    Stakeholders to chart path for financial markets

    Former Governor, Central Bank of Nigeria (2009-2014),  Muhammadu Sanusi II, Director-General, Debt Management Office, Ms. Patience Oniha, Chairman, Titan Trust Bank, Dr. Tunde Lemo, are among the dignitaries expected at the 7th Financial Markets Dealers Association’s (FMDA) Annual Conference.

    The event will be held on Wednesday, December 6, 2023 with the theme “The Role of The Financial Market in Repositioning the Nigerian Economy” at Four Points by Sheraton (Galaxy Hall), Victoria Island, Lagos.

    FMDA Acting Executive Secretary, Mary Gbegbaje,  in a statement, noted that the conference was designed to provide an opportunity for financial markets participants, regulators, investors, corporate organisations and other stakeholders to deliberate on possible ways of using financial markets infrastructure to reposition the economy for sustainable development.

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    Managing Director/CEO Guaranty Trust Bank Limited, Miriam  Olusanya will deliver the keynote address, Muhammadu Sanusi II, will speak on the Impact of Foreign Exchange Policies in the Nigerian Economy.

    Chief Executive Officer, Nigerian Economic Summit Group (NESG), , Dr. Tayo Aduloju, will speak on Development of Real Sector for Economic Growth while Dr.  Lemo will speak on the Role of Central Bank in Financial Stability and Macroeconomic Supervision. In addition, DG-DMO will speak on Developing Economies and Debt Sustainability – Sub-Saharan Africa’s Perspective.

    The Financial Markets Dealers Association of Nigeria is a body of licensed Deposit Money Banks (DMBs) operating in the Nigerian financial market with emphasis on regulatory policy engagement, advocacy and professional ethics in the financial market.

  • Stanbic IBTC sustains CSR initiative

    Stanbic IBTC sustains CSR initiative

    Stanbic IBTC Bank has reiterated its commitment to  instilling hope and bringing about life-changing transformations to the people in places of its operation.

    By firmly prioritising humanity and taking decisive action to address vital needs, the organisation’s “Together4ALimb” initiative has a significant and positive effect on the lives of those who need it the most. The scheme has mpacted the lives of 45 Nigerian children, offering them a renewed sense of hope and purpose.

    In a heartwarming display of Corporate Social Responsibility, Stanbic IBTC Bank marked its ninth anniversary of supporting children living with limb loss through its impactful “Together4ALimb” initiative. The commemoration took the form of a walk awareness programme held at the weekend at the bank’s headquarters in Victoria Island, Lagos.

    Since its inception in 2015, the initiative has touched the lives of 100 children across all 36 states of the federation, including the Federal Capital Territory. A significant milestone has been reached, with 45 children now equipped with orthotic limbs, each supported with a sum of N1.5 million.

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     Head of Brand and Marketing at Stanbic IBTC, Bridget Oyefeso Odusami, expressed the emotional journey of witnessing these children regain hope and embrace life through the provision of protective limbs. 

    Speaking at the anniversary walk, she shared, “The journey of walking together for a limb has been very emotional for me. Witnessing children gain a renewed sense of life, knowing that we’ve provided them with protective limbs, is truly gratifying.”

    Odusami further highlighted the educational support provided, saying, “What is more exciting is that we keep these children in school. We offer an educational trust fund of 1.5 million naira per child until they reach 18 years, ensuring they have the opportunity to pursue higher education.”

    The commitment of Stanbic IBTC to these children goes beyond physical support, extending to their education and future aspirations. As Bridget Oyefeso proudly stated, “I am glad to be working for a brand that cares about children and giving them another lease on life.”

    In a testament to the impact of Stanbic IBTC’s initiative,  Founder and CEO of Ifeanhealth, Ejike Anih, emphasized the importance of prosthesis orthotic in Nigeria, particularly for children facing limb challenges. He commended Stanbic IBTC for consistently sponsoring the “Together4ALimb” program for the past nine years, applauding the recent expansion to benefit 100 children.

    Vice Consul to Germany, Violavan Loock, acknowledged Stanbic IBTC’s investment in orthotic technology, lauding its commitment to quality and excellence. The technology, developed with German engineering, reflects a deep understanding of the human experience and a commitment to improving lives.

  • Winners emerge in innovation challenge

    Winners emerge in innovation challenge

    Joseph Ojighoro, the founder of OJ Technologies Limited, a health tech business, emerged as the winner of the maiden Innovation Makers Challenge (IMC) organised by the Telecommunications and Technology Sustainability Working Group (TTSWG), receiving a cash prize of N2,000,000.

    The winner was selected after the top five contestants from across Nigeria vied for the grand award prize at the IMC 2023 Conference and Exhibition, which was held on Thursday, 9th November, at the Eko Convention Center, Lagos.

    The IMC is a youth-centric initiative designed to accelerate the growth of innovative, sustainable, technology-driven ideas and products. The event had IHS Towers as the principal sponsor, with Quomodo Systems Africa and Arnergy as co-sponsors. Valentine Nnamani, founder of OneGrid Energies and Elijah Moses, founder of Kugatel, were awarded the first runner-up and second runner-up positions, respectively, receiving cash prizes of N1,000,000 and N500,000.

    Following a three-day boot camp, the top five finalists emerged after a pre-pitch from the initial 20 applicants selected from the 1,716 registered participants in the challenge. The finalists presented innovative ideas across different technology fields, including fintech, health tech, assistive tech, and energy tech. The boot camp provided training on business management and was conducted by industry leaders and tech specialists from NCIC, official partners of the event.

    Speaking on the importance of nurturing the next generation for sustainable economic and societal development, the Vice Chair of the TTSWG Board, Dr Wunmi Hassan, stated, “I feel excited to observe the quality of thinking, problem-solving mentality, and skills that we have seen displayed so far. I look forward to great things in the future as we innovate and change Nigeria.”

    Joseph Ojighoro, the winner of the challenge, pitched a business idea centred around utilising virtual reality to enhance clinical training and competency in Africa. Reflecting on his victory, he expressed, “Gratitude overwhelms me, and I am short of words to stand as the winner today. In a world where medical errors claim 2.6 million lives annually, making them the third leading cause of death in the world, my team’s journey to enhance clinical training and competency through the metaverse using virtual reality technology has taken another leap. Thank you to TTSWG for this initiative, and to the judges, I am short of words.”

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    Bekeme Olowola, Lead Consultant for TTSWG Secretariat and Chief Executive, CSR-in-Action, whilst delivering the opening remark, also posited that Nigeria is a country not just of endless potential but also of remarkable achievement, “Every byte and bit of advancement in technology is the steppingstone towards our collective progress. In Nigeria, technology isn’t just an industry, it’s a heartbeat pacing steadily to the rhythm of innovation that promises to elevate our national development to unprecedented heights.”

    “As we applaud all the great progress recorded today, we must ponder deeply at the ethical tapestry of our creations. It’s not just about what technology can do but also what it should do. Let’s answer the call to wield technology with a conscience. It’s here to enhance humanity, not eclipse it.” Bekeme concludes.

  • Access Bank, Fed Govt okay N30b support for MSMEs

    Access Bank, Fed Govt okay N30b support for MSMEs

    In line with its commitment to support women and youth-owned businesses in Nigeria, Access Bank Plc, has partnered with the Federal Government of Nigeria to provide N30 billion in support for four million Micro, Small and Medium Enterprises (MSMEs).

    The Group Managing Director/Chief Executive Officer of Access Bank Plc, Roosevelt Ogbonna, made this known in an interview with the press after a meeting with the Vice-President, Kashim Shettima at the Presidential Villa, on Friday in Abuja.

    “This initiative echoes our longstanding commitment to inclusivity, and we are privileged to align our efforts with Office of the Vice-President’s mandate to prioritise the empowerment of women. We are thankful to the Vice-President for granting us the opportunity to partner with the Federal Government. Indeed, his shared belief in the potential of women and his support through this partnership gives us significant impetus to do more.

    “With more than 66% of the Nigeria’s MSMEs owned by women and youths, challenges including access to finance, education and mentorship remain prevalent. To bridge these gaps, we have designed four different programmes to benefit no fewer than four million individuals and businesses across Nigeria,” he said.

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    On his part,  Senior Special Assistant to the President on Job Creation and MSMEs, Office of the Vice-President,  Temitola Adekunle-Johnson, reiterated the readiness of the Federal Government to partner with the private sector to support SMEs.

    He said: “President Bola Ahmed Tinubu has told the entire world that Nigeria is ready, and our doors are open for partnerships that will be of benefit to the populace. Women are a key We recognise the need for public-private collaborations in fostering progress, so this partnership with Access Bank has come at the right time. We expect the programme to commence very soon, and we are excited for the opportunities that it will afford MSMEs.”

    Ogbonna also emphasised that all beneficiaries will be accessing the funds at discounted rates and expressed excitement at the opportunity to deepen Access Bank’s scope of impact as it continues playing its part in fostering sustainable and inclusive growth.

  • Nigeria, Saudi mull dual listing at stock exchanges

    Nigeria, Saudi mull dual listing at stock exchanges

    • Aramco may be listed on NGX

    Nigeria and Saudi Arabia are considering a mutual arrangement that allows companies to list on both the Nigerian Exchange (NGX) and Saudi Stock Exchange.

    Group Chairman, Nigerian Exchange Group, Dr. Umaru Kwairanga hinted at the plan for dual listing with the Saudi Exchange, stressing that President Bola Tinubu’s economic reforms have created room for investment in Africa’s largest economy.

    Kwairanga, who spoke on the sidelines of the Saudi-Africa Summit in Riyadh, said that the summit was an opportunity to seek cooperation between the Saudi government and the Nigerian business environment.

    He noted that the summit was an opportunity where the Nigerian government felt that there is a need to showcase itself and that the new government has come with a lot of new reforms which other countries in Africa and beyond are looking at.

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    “We believe with our population, and many other advantages we have opportunities to showcase, to Africans, Arabs based out of Saudi Arabia,” Kwairanga said.

    He expressed optimism over opportunities in the NGX amid foreign exchange (forex) scarcity challenges.

    “One of the discussions we had is on dual listing between the Saudi Stock Exchange and the NGX. We had a discussion with the Minister of Environment and his officials, looking at how our biggest companies quoted on NGX going to leverage this.

    “We are going to take companies like Aramco to be listed on the NGX. We intend to replicate what we did on the London Stock Exchange (LSE) with the Saudi Stock Exchange regarding dual listings.

    “Last month we were with Mr. President in NASDAQ. We had so many discussions on many business opportunities.

    “So, it will attract a lot of investors into the Nigerian economy and I believe this government is doing a lot regarding reforms.

    “We need to come and showcase investors and you can see the way people have applauded Nigeria’s delegates that have come for this conference,” Kwairanga said.

  • Sterling’s The Alternative Bank, Gambian bank explore collaboration

    Sterling’s The Alternative Bank, Gambian bank explore collaboration

    The Alternative Bank (TAB), the non-interest subsidiary of Sterling Financial Holdings Company and The Gambia’s Banque Sahelo-Salarienne pour l’Investissement et le Commerce (BSIC) have launched a business relationship expected to lead to cooperation on many areas. 

    BSIC is on a two-week exchange programme at TAB with a view to promoting collaboration between the non-interest banking sectors of Nigeria and Gambia’s financial services sectors.

    Managing Director, The Alternative Bank (TAB), Hassan Yusuf, said the four-member delegation from BSIC is embarking on study tour of TAB’s operational and business processes as part of the prerequisites stipulated by The Gambia’s Central Bank to establish an operational window for a non-interest bank in The Gambia.

    Yusuf explained that the visit will help nurture stronger relationships between TAB and BSIC.

    According to him, the exchange programme has the potential for significant impact on Gambia’s financial landscape specifically, and the broader scope of the continent’s non-interest banking market.

    Team Lead, Banque Sahelo-Salarienne pour l’Investissement et le Commerce (BSIC) and Director of the Islamic Banking Window, Mr. Malick Joof said the visit provided an opportunity to learn first-hand in one of the most technologically advanced financial services markets on the continent.

    “With this visit, we can take forward learnings that will further improve our operations in Gambia, and hopefully begin to lay the foundations for collaborations with the potential to expand ethical banking across the continent,” Joof said.

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    BSIC was established in April 1999 by the Community of Sahel-Saharan States, CEN-SAD, with a mission to serve as the financial vehicle for the economic integration of the CEN-SAD nations, and to facilitate the regional integration of the African continent.

    The BSIC group operates in 14 African countries and aspires to be a prominent banking group on the continent, distinguishing itself as the sole bank providing investment and commercial services in the Gambian banking industry.

    The recently launched TAB is actively offering digital products and services to customers, employing an unconventional approach to e-commerce, investments, asset financing, and renewable energy solutions. These include AltMall for e-commerce, AltInvest for ethical retail investments, AltPower for affordable renewable energy solutions, AltDrive for new and pre-owned vehicle financing, and WasteBanc for monetizing recyclable waste. In addition to these offerings, TAB provides personalised financial consultations, tailored solutions, and one-on-one guidance to help customers achieve their financial goals.

  • Royal Exchange gets approval for N2.06b recapitalisation

    Royal Exchange gets approval for N2.06b recapitalisation

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has approved the plan by Royal Exchange to raise N2.06 billion in new equity funds from existing shareholders.

    Royal Exchange yesterday confirmed that SEC has given it the nod to sign off the offer documents for the rights issue, after which the offer will open around November 29, 2023 or any other date approved by SEC. The company said the offer would be opened for some 28 days.

    Royal Exchange, which is pursuing a voluntary recapitalization of its businesses, plans to issue 4.116 billion ordinary shares of 50 kobo each to existing shareholders at 50 kobo per share.

    The rights issue will be pre-allotted on the basis of four new ordinary shares of 50 kobo each for every five ordinary shares held as at the close of business on Monday, March 06, 2023.

    The board of directors of the group had earlier submitted application to the NGX for the approval of the rights use and subsequent listing of the issued shares after the completion of the offer.

    Shareholders of Royal Exchange had authorised the board of the company to raise new equity capital of up to N2.06 billion from existing shareholders.

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    At an extraordinary general meeting, shareholders approved resolutions authorising the issuance of 4.112 billion ordinary shares of 50 kobo each to existing shareholders with a view to raising N2.058 billion.

    The meeting mandated the board to fix the offer price and shareholders also waived their pre-emptive rights to allow the company offer unsubscribed shares to interested investors, on the same terms as the rights issue.

    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.