Category: Money

The Chief Financial Officer of Zenith Bank Plc, Dr. Mukhtar Adam, has been named ‘Chief Financial Officer of the Year’ at the 11th All Africa Business Leaders Awards (AABLA).The award was held in partnership with CNBC Africa.

The ceremony took place at the King’s Ballroom, Sun City, South Africa. The honour places Dr. Mukhtar alongside other celebrated professionals across Africa.

Expressing his gratitude for the recognition, Mukhtar thanked the judges and organisers of the award, expressing his appreciation for being deemed a fitting recipient of the ‘Chief Financial Officer of the Year’.

He dedicated the award to the Founder and Chairman of Zenith Bank Plc, Jim Ovia. Also, he expressed his gratitude to the management of Zenith Bank, his colleagues in Nigeria and the bank’s subsidiaries for fostering a positive work environment.

Mukhtar also extended his thanks to the bank’s many customers.

The All Africa Business Leaders Awards (AABLA), in partnership with CNBC Africa, represents Africa’s largest single-business awards, celebrating the pinnacle of African business achievement. The AABLA has consistently narrated an African story of perseverance, success, innovation, and accountability. It has become synonymous with recognising the finest in business leadership on the African continent.

Adam is a distinguished finance professional with over two decades of cognate experience. He holds a Doctor of Philosophy degree in Finance from Leeds Beckett University, an M.Sc. in Finance – Financial Sector Management from the University of London’s School of Oriental and African Studies, an MBA in Finance from the University of Leicester, and a B.Ed. in Social Sciences, specialising in Economics and Management, from the University of Cape Coast in Ghana.

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Adam also holds a Diploma in International Financial Reporting Standards (IFRS) from the esteemed Institute of Chartered Accountants in England and Wales (ICAEW) and a Postgraduate Diploma in Islamic Banking and Insurance from the Institute of Islamic Banking and Insurance in the UK.

Adam has participated in several executive programmes at world-leading institutions, including the General Management Program (GMP) at Wharton Business School in the USA, Harvard Business School, INSEAD Business School in Paris, the London School of Economics and Political Science, and the Massachusetts Institute of Technology. He is a member of the Institute of Chartered Accountants of Nigeria (ICAN), the Institute of Chartered Accountants of Ghana (ICAG), and the Chartered Institute of Taxation of Nigeria (CITN).

Prior to his current role as the Chief Financial Officer (CFO) of Zenith Bank Plc,  Adam served as the bank’s Deputy CFO, leading the Financial Reporting, Tax Management and Strategic Planning Groups and supervising the Zenith Group’s entire financial reporting function. Before joining Zenith Bank in 2007, he honed his skills as a Senior Consultant in the Financial Services Group of PricewaterhouseCoopers (PwC).

His vast expertise spans numerous financial areas, from financial sector management and policy analysis to financial reporting and analysis, tax management, audit management, strategy development and execution, enterprise risk management, credit risk management, and financial advisory. He is also accomplished in capacity building and training. Adam is a prolific researcher with several professional and academic publications.

Youngsters who shone brightest in the 2023 SystemSpecs Children’s Day Essay Competition (CDEC) were honoured at a National Winners’ Award Ceremony held recently in Lagos, Nigeria.

The ceremony also recognised the winning schools and the State, showcasing their remarkable achievements and promoting the significance of intellectual brilliance and academic excellence among children.

Uwakwe Johncollins Chikanyima of Sacred Heart Seminary, Rivers State, and Afolabi Adeola Joanne of Bishop Howells Memorial Grammar School, Lagos State, emerged winners of the 2023 SystemSpecs CDEC in the junior category and senior category respectively.

About 3,000 entries were received from children between the ages 9 and 16 from all the regions of the federation and the FCT, while they shared mind-blowing technology innovations on the topic “Making Nigerian Children Better Citizens Through the Use of Technology”.

In the junior category, Ifelaja Elliot of Masterhills School, Ogun State, and Onile Jomiloju Ayoade of Eternal Excellency College, Oyo State, won the second and third prizes. At the same time, Madu-Nwaigwe Henry of White of Pearl International School, FCT-Abuja, and Dioha Adaeze Margaret of Grundtvig International Secondary School, Anambra State, came second and third in the senior category, respectively. 

In addition, Lagos State emerged as the Winning State among other States across Nigeria that participated in the Competition. This award is reserved only for the State with the highest number of public schools in the top 100. The State produced eight out of the 21 public schools that came tops in the Competition.

The other public schools within the top 100 were spread across various States in Nigeria, including Ekiti State (1), Enugu State (1), Anambra State (2), Cross River State (1), FCT-Abuja (4), Ogun State (3) and Oyo State (1).  

Among the public schools from Lagos that featured in the top 100 are Local Government Primary School, Ladaba, Epe; State Junior High School, Alimosho; State Senior High School, Oyewole Agege; Command Day Secondary School, Oshodi; Lagos City Senior College, Sabo Yaba; Sito Gbethrome Junior Secondary School, Badagry; Vetland Senior Grammar School, Agege; and Surulere Girls Senior Secondary School, Surulere.

In a remarkable display of commitment, SystemSpecs, Nigeria’s largest software technology group with over 30 years of experience, successfully organised the fourth National Children’s Day Essay Competition. This stands as a testament to the organisation’s unwavering dedication to nurturing indigenous technology capacity through structured Corporate Social Responsibility (CSR) initiatives.

“It’s a dream in the making, helping young Nigerians to recognise early that they have got a role to play in nation-building. Today, we are celebrating another set of Nigerians who have demonstrated excellence, discipline and rigour, allowing their mind to be expanded in what is possible in terms of citizenship, capacity-building and more importantly having a vision that they can do a lot more,” said Deremi Atanda, Managing Director, Remita Payment Services Limited (RPSL).

The first position winner in each category got a high-capacity laptop, laptop table, topnotch headphones, smart wristwatch, 120 gigabytes of internet data for one year, a unique keepsake hoodie, a school bag, and more. The second and third-place winners in each category also received a high-capacity laptop, 60 gigabytes of internet data for one year, a branded hoodie, a thermal flask, a school bag, and more. Some select public libraries within Lagos State shall be equipped with ten (10) laptops representing the winning prize for this category.

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Group Head, Corporate Services at SystemSpecs, Oluwasegun Adesanya, said the Company’s annual Children’s Day Essay Competition is one of its CSR initiatives aimed at developing indigenous technology capacity.

Adesanya said, “We are amazed by the quality of essays we received from this year’s participants. The entries proffered proven technology solutions that can groom Nigerian children to be better citizens. We have identified the outstanding submissions and will ensure that the relevant stakeholders required to bring these ideas into fruition are carried along.”

Winners of the 2023 SystemSpecs Children’s Day Essay Competition were announced on Monday, 29 May, 2023, while the awards ceremony held on Friday, June 9, 2023. Total number of essays received were 2,895. The junior category garnered 1,407 entries and senior category 1,488. Participating schools were 1,086 across the 6 geopolitical zones and FCT-Abuja. This represents 43 per cent increase from last year.

After the plagiarism and AI checks, eligible entries came down to 2,095 from 861 schools. The number of participations from public schools in the 2023 competition grew to 864 representing 30 per cent (compared to the 26 per cent in 2022) of the number of schools that participated.  21 public schools also featured in the top 100 schools.

This year, Al Iman Secondary School, Taraba, produced five (5) entries (the highest) number of entries in the top 100, followed by Grundtvig International Secondary School, Anambra State, which produced four (4) entries in the top 100.

During the announcement event, one of the judges, Prof. Babatunde Lawal, a senior lecturer at McPherson University, speaking on the evaluation process, stated that the process was bias-free as all entries were judged without the identities of the participants and in multiple assessments stages, which led to shortlisting the winners as solely determined by the panel of judges.

“The quality of essays received is a testament that Nigerian children are exceptional, innovative, and forward-thinking in proffering solutions to national issues. It further reveals that many Nigerian children are technologically aware and should be encouraged to explore new inventions to be at par with their counterparts around the globe. I commend SystemSpecs for this amazing initiative and believe its outcome will be adopted in policies and national decision-making,” said Prof. Lawal.

For over 30 years, SystemSpecs has provided innovative technology solutions and services through its companies to customers in Nigeria and beyond Africa. Some of the companies under the Group include RPSL, HumanManager Limited (HML), SystemSpecs Technology Services Limited (STSL), and SystemSpecs Deelaa Limited.

FITC Future of Work Academy (FITC FOWA) has announced  the official induction of talented youths from around the world into its esteemed School of Cybersecurity that would enable them to fight against cyber-attacks. 

The induction ceremony, which took place recently, marks a significant milestone in addressing the global shortage of cybersecurity professionals and safeguarding digital ecosystems.

In an era defined by cyber threats, the FITC FOWA School of Cybersecurity stands at the forefront, moulding the future workforce. Through hands-on training and cutting-edge curriculum, aspiring professionals are equipped with the necessary tools to combat cyber attacks head-on. What sets the FITC FOWA School of Cybersecurity apart is not only its comprehensive approach but also its accessibility, as attendance is free. The trailblazing knowledge initiative through an unparalleled experience is dedicated to empowering individuals with the essential skills to navigate the complex world of cybersecurity.

The induction event brought together a vibrant and diverse group of eager learners, all seeking to gain invaluable insights from renowned cybersecurity experts. This gathering provided attendees with a unique opportunity to immerse themselves in the world of cybersecurity, gaining practical industry knowledge, exploring the comprehensive curriculum offered by the FITC FOWA School of Cybersecurity, and discovering the vast array of exciting career opportunities available in this rapidly expanding field.

During her welcome address,  the MD/CEO of FITC, Chizor Malize, highlighted the exceptional dedication and expertise invested in crafting the curriculum for the FITC Future of Work Academy’s School of Cybersecurity, in collaboration with CISCO Networking Academy. 

“With a keen understanding of the global demand for cybersecurity professionals, the curriculum was thoughtfully designed to cater to individuals with varying levels of expertise, accommodating both seasoned practitioners well-versed in the intricacies of cybersecurity, risk management, and incident response, as well as newcomers to the field,” she revealed.

Malize further emphasized that the comprehensive curriculum, which encompasses major cybersecurity disciplines, provides a holistic approach that equips participants with the knowledge and expertise needed to excel in the digital age.

Addressing the inductees, Malize noted the profound impact they would have beyond their time at the academy, as the skills and knowledge gained would contribute to organizations, industries, and the global cybersecurity landscape. She encouraged the students to embrace the limitless potential of the cybersecurity domain and become catalysts for a safer and more secure digital world.

Mr. John Anyanwu, Partner & Head, Cyber and Privacy, KPMG Nigeria, also spoke at the induction ceremony, emphasizing the growing importance of cybersecurity in today’s business landscape. He highlighted the continuous investment in technology by micro, small, and medium enterprises, which has resulted in both opportunities and vulnerabilities. “As we build more smart assets, we expose ourselves to potential cyber harm and threats, thereby creating an increasing demand for cyber security professionals across various levels: technology and technical, policy formulation, governance, and risk management” he said.

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Anyanwu went on to explain that the field of cyber security extends far beyond traditional boundaries and presents a multitude of opportunities, especially with the integration of artificial intelligence. The exponential increase in these opportunities further reinforces the demand for cyber security professionals. Addressing the participants, he expressed his confidence in their career choice and encouraged them to remain focused and actively participate in the Academy.

Delivering the induction charge, Dr. David Isiavwe, President and Chairman Board of Trustees of the Information Security Society of Africa, Nigeria (ISSAN), emphasized the critical nature of the cybersecurity profession and the protection of valuable digital assets. He addressed the aspiring cybersecurity professionals of the first cohort of the FITC School of Cyber Security, recognizing their commitment to safeguarding the digital landscape in the face of escalating cyber-attacks. Dr. Isiavwe stated, ‘Your presence here today symbolizes your steadfast commitment towards safeguarding our digital landscape.’

Highlighting the magnitude of cyber threats, Dr. Isiavwe shared a revelation by the Nigerian government regarding the staggering volume of approximately 12 million cyber-attacks during the presidential elections, originating from both domestic and international sources. He called upon the inductees to step forward and shield organizations, communities, and the African continent from the dangers that exist in the cyberspace.

Dr. Isiavwe underscored the inductees’ privilege of being mentored by battle-tested and experienced experts at the FITC Cybersecurity Academy. He encouraged the participants to delve into captivating case studies, engage in mind-expanding simulations, and undertake hands-on exercises that would sharpen their skills and broaden their cyber horizons. He emphasized the importance of developing a mindset of relentless curiosity, resilience, and ethical responsibility as they navigate the complexities of the cyber landscape.

In his concluding remarks, Dr. Isiavwe inspired the participants to embark on this journey with a dedication to excellence, stating, ‘Together, we will practically maneuver through both the surface web and the dark web, acquiring the necessary skills to protect our digital assets and ensure a secure future for our organizations and communities.’

Malize congratulated the students on embarking on their cybersecurity career journey at this crucial moment and wished them growth, knowledge, and transformative experiences throughout their time at the academy.

The FITC FOWA School of Cybersecurity’s inauguration and induction of global youths’ event was a resounding success, representing a significant milestone in the pursuit of digital security excellence. FITC Future of Work Academy (FITC FOWA) remains dedicated to shaping the future workforce and will continue to provide innovative educational programs that empower individuals to thrive in the digital age.

The FITC Future of Work Academy (FOWA) is a pioneering global academy committed to equipping individuals with the necessary skills and knowledge to thrive in the digital age. Through innovative education and professional development programs, FITC Future of Work empowers learners to embrace emerging technologies, adapt to changing work dynamics, and excel in the future of work.

Sterling Bank, Nigeria’s leading commercial bank, launched a new product focused on market women and traders in Ogun State.

The One-Woman Saver Account is a product that aims to give easy access to banking services at a six percent rate of return on savings.

The Regional Business Executive of Sterling Bank, Southwest, Evans Akinlolu, explained that the product was designed to drive financial inclusion, enable women to create a savings culture as well as improve their overall economic status over time, while speaking at the launch of the One-Woman Saver Account at Lafenwa, in Abeokuta, Ogun State’s capital city.

He said women are a significant component of an economy, and it is crucial to incorporate them in any initiatives designed to strengthen the state’s economy.

“At Sterling Bank, we believe so much in women. We know that women can transform society, and if you support a woman, you are supporting the nation.”

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“This product encourages you to save gradually, and the interest rate that comes with it is one of the highest today. Also, Sterling Bank is one of the leading banks in the country; you have nothing to fear. What we have done again is that we will come to you every day, not that you will be coming to the bank.”

“Whatever the Ajo people are doing that you are not too sure of, we assure you that every kobo of your money is guaranteed. You are not losing anything. Above all, you get access to a soft loan after you have saved for six months. So, I want to tell you that you are in the right place. You are in the right hands, and we pray that your business will continue to grow”.

To inform potential consumers about the advantages of the account, bank officials went to the town’s Itoku and Kuto marketplaces.

In his remarks, the representative of Women’s World Banking, Mr Emezino Afiegbe, disclosed that Women’s World Banking partnered with Sterling Bank because of its ability to solve women’s financial needs. He added that the bank always prioritizes the needs of women and is always ready to support them.

“We are proud to partner with Sterling Bank because Sterling Bank has what it takes to make women prosper. At Women’s World Banking, we always go into the market to let customers tell us what they need so we can develop the right product”.

Present at the launch were the Project Coordinator of the Nigeria Women Project, Mrs Fadairo; the Permanent Secretary of the Ministry of Women Affairs, Mrs Ogunremi; Olori Aje of Egba, Alhaji Mutiu; and Iyaloja Lafenwa, Mrs Sidi Owe, among others.

• UBA, GTCO, Access Holdings lead

Nigerian equities continued on their bullish run as more investors staked on optimism that the new government’s pro-market policies would lead to significant improvements in the economic outlook.

Benchmark indices for the Nigerian equities at the weekend indicated average gain of 5.49 per cent during the week, equivalent to net capital gain of N1.67 trillion.

With more than three advancers for every decliner, the performance at the stock market continued on the same strong momentum and widespread positive sentiments, triggered by the May 29 inaugural address of President Bola Tinubu.

The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), closed weekend at 59,000.96 points as against the week’s opening index of 55,930.97 points. Aggregate market value of all quoted equities at the NGX also rose correspondingly from the week’s opening value of N30.455 trillion to close weekend at N32.126 trillion, representing an increase of N1.67 trillion.

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The momentum also increased considerably with a total turnover of 4.276 billion shares worth N62.176 billion in 44,344 deals as against a total of 2.196 billion shares valued at N45.971 billion traded in 31,655 deals two weeks ago.

Investors showed strong appetite for banking stocks. Trading in the trio of United Bank for Africa Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc accounted for 1.475 billion shares worth N27.648 billion in 8,875 deals, contributing 34.50 per cent and 44.47 per cent of the total equity turnover volume and value respectively.

The financial services industry led the activity chart with 3.303 billion shares valued at N45.244 billion traded in 23,490 deals; thus contributing 77.26 per cent and 72.77 per cent to the total equity turnover volume and value respectively. The oil and gas industry followed with 247.383 million shares worth N2.368 billion in 3,561 deals. The third place was occupied by the consumer goods industry, with a turnover of 223.315 million shares worth N4.640 billion in 5,982 deals.

There were 77 gainers to 24 losers last week as against 52 gainers and 27 losers recorded in the previous week. FTN Cocoa Processors led the gainers with a gain of 45.16 per cent to close at N1.35. Unity Bank followed with a gain of 41.67 per cent to close at N1.02 while Coronation Insurance rose by 40.43 per cent to close at 66 kobo.

Most analysts have expressed optimism on the outlook for Nigerian stock market, citing the macroeconomic reforms by the new administration.

Afrinvest Securities at the weekend stated that it expected the bullish run to continue.

Managing Director, Arthur Stevens Asset Management, Mr. Olatunde Amolegbe said the pronouncements by the president were “extremely important” to the capital market, noting that “they will impact the economy and the investment market in the short to medium term if implemented as mentioned”.

“The President has hit the ground running. If you are holding fixed income securities at present rates, you better consider holding on to them. We expect influx of foreign portfolio investors into the stock market now that the coast seems clear. So, a bull run might not be far behind. This will be interesting times,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said.

Cordros Capital, in its review, stated that it believed that the exchange rate unification was a very good initiative to pursue, which should essentially see the official and unofficial exchange rates eventually trade within a close margin which is considered to be optimal, holding forex liquidity constant.

Analysts noted that there might be some panic selling in the near term at the unofficial market, leading to some appreciation of the local currency at the parallel market, but if the official exchange rate is eventually realigned, the exchange rate would depreciate again at the unofficial market, if there are no immediate plans to drive forex inflows.

In essence, what then happens afterwards in terms of forex supply will determine how the exchange rate dynamics in the unofficial forex markets play out. Overall, analysts expected volatility in the forex market until the coast is clear on forex supply after the official exchange rate is realigned.

“We also like the PMS subsidy removal given that subsidy removal frees up government resources for other productive uses. Indeed, the President stated that his administration shall re-channel the funds into better investments in public infrastructure, education, healthcare and jobs that will materially improve the lives of the average citizen. Also, given the potential positive impact of PMS subsidy removal on government revenue, we expect to see an improvement in the debt-service-to-revenue ratio, which was 89.5 per cent as at November 2022. Fiscal deficits are also likely to reduce over time if aggregate expenditure does not grow more than the increase in revenue,” Cordros Capital stated.

Analysts at Cordros Capital were however cautious about the possibility of low interest rates regime now.

“While some individuals can find logic in reducing interest rates, for now, we think it will be disastrous when activities eventually normalise. Thus, we think the statement suggests a preference for low interest rates even when low rates are not warranted, likely leading to capital outflows, exchange rate pressures, and worsening inflationary pressures. Perhaps, the country might end up with interest rate bifurcation such that interest rates for government securities are low but private sector lending rates are high,” Cordros Capital stated.

Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc has projected gross earnings of N12 billion for the third quarter.

In its latest forecast, the management of the bank indicated that the bank record considerably higher performance in the next three months, with higher incomes and profitability.

According to the forecasts, the top-line for the three-month period ending September 30, 2023, pre-tax profit margin is expected to increase by more than three per centage points to 20 per cent in the third quarter, as against 16.86 per cent actual reported for the last interim report of first quarter 2023. The three-month forecast for third quarter 2023 released at the Nigerian Exchange (NGX) estimated that pre and post tax profits would be N2.40 billion and N2.16 billion. This implies a pre-tax profit margin of 20 per cent and net profit margin of 18 per cent respectively, within the top-bracket of the industry margins.

Gross earnings is expected to increase to N12 billion, with financing income of N11.59 billion. Other incomes were projected at N414.69 million. Net operating income is estimated at N8.68 billion, implying net operating margin of 72.33 per cent.

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Jaiz Bank’s latest interim report had shown double-digit growths across performance indices, setting the alternative banker on a strong wind for the 2023 business year.

Key extracts of the three-month report for the quarter ended March 31, 2023 released at the NGX had shown that gross income rose by 38.3 per cent while pre and post tax profit grew by 44.55 per cent. The bank’s balance sheet also expanded by 19.2 per cent within the period.

Gross income rose to N9.43 billion in first quarter 2023 as against N6.82 billion in first quarter 2022. Profit before and after tax increased to N1.59 billion in first quarter 2023 compared with N1.10 billion in comparable period of 2022. Earnings per share rose by 53.16 per cent from 4.61 kobo to 3.01 kobo. Total balance sheet rose from N379.82 billion by December 2022 to N452.82 billion by March 2023.

The board of Jaiz Bank had recently increased dividend payable to shareholders by 25 per cent after the alternative bank grew net profit by 68.5 per cent in 2022. The bank paid a dividend per share of 5.0 kobo for the 2022 business year, totaling N1.727 billion as against a dividend per share of 4 kobo for the 2021 business year.

The full-year audited report and accounts for the period ended December 31, 2022 showed that gross earnings rose by 29.4 per cent from N25.84 billion in 2021 to N33.43 billion in 2022. Profit before tax grew by 59.5 per cent from N4.16 billion in 2021 to N6.63 billion in 2022. With tax writeback of N248.54 million in 2022, net profit, grew by 68.5 per cent from N4.08 billion in 2021 to N6.88 billion in 2022.

Earnings per share increased by 39.13 per cent to 19.2 kobo in 2022 as against 13.8 kobo in 2021. The issued share capital of the bank had increased from 29.46 billion shares in 2021 to 34.54 billion shares.

The balance sheet of the bank also expanded by more than one-third with total assets rising by 35.6 per cent to N378.82 billion in 2022 as against N279.27 billion in 2021. Total equity funds also increased from N24.31 billion to N29.80 billion.

Underlying ratios showed a generally positive outlook with the bank’s net income margin (NIM) improving from 7.86 per cent in 2021 to 8.29 per cent in 2022. Cost-to-income ratio improved from 75.49 per cent in 2022 to 70.51 per cent.

Return on total assets increased from 1.49 per cent to 1.75 per cent. Return on equity also grew from 17.11 per cent in 2021 to 22.25 per cent in 2022. While capital adequacy dropped from 23.66 per cent to 19.50 per cent, liquidity improved from 29.78 per cent to 38.50 per cent.

Managing Director, Jaiz Bank Plc, Dr Sirajo Salisu said the bank has continued to make outstanding progress despite the headwinds, including the fluctuating currency rate and the effects of the Russia-Ukraine war on the world.

According to him, the bank has consistently delivered remarkable results in the last four years, which clearly is a reaffirmation of its continuous growth trajectory, being the leader in Nigeria’s non-interest banking space.

Jaiz Bank has already secured shareholders’ approvals to raise not less than N150 billion in new capital through Sukuk issuance and to implement a holding company structure that will see the bank engaging in other ancillary financial services.

Jaiz Bank’s planned N150 billion Sukuk will be the largest non-interest bond issuance in the Nigerian capital market.

Shareholders have also mandated the board of directors to take all necessary steps and transactions that would enable the bank to achieve its short to long-term growth objectives as well as greater competitiveness. These steps and transactions may include acquisitions, new investments, restructuring; expansion, capital raising and other business arrangements that enhance the bank’s growth trajectory.

Development Bank of Nigeria (DBN) Plc at the weekend opened application for the first tranche under its N100 billion capital raising programme.

DBN is seeking to raise up to N20 billion bond as the debut issuance under the N100 billion medium term note programme aimed at expanding the capital base of the development finance institution promoted by the Federal Government.

The bank is offering Series 1 Fixed Rate Senior Unsecured Bond with a five-year tenor and pricing range of 14.00 per cent and 14.20 per cent. Application list for the offer will close on Friday, June 23, 2023. Minimum subscription is N10 million and thereafter in multiples of N1 million.

The N20 billion bond is being offered through a book building method, a process that allows the issuer to accumulate initial demand and price preferences from investors, especially high networth institutional and individual investors, which form the basis for the final terms and allotments.

Offer documents obtained at the weekend indicated that the net proceeds of the N20 billion issue would be used to expand DBN’s capacity to provide funding to micro, small & medium enterprises (MSMEs), in furtherance of its core corporate objective.

According to the documents, the interest rate or coupons on the bond will be paid twice a year while the redemption will be by way of bullet payment at the end of the five-year tenor. The bond will be repaid from the cashflow of the bank.

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The documents showed that DBN and the N20 billion bond have been rated Aaa by Agusto and AAA by Global Credit Rating (GCR).

DBN was set up to bridge the gap created by the inability of other development banks, microfinance banks, and commercial banks to satisfy the funding needs of the MSMEs in Nigeria.

The principal objective of the bank is to improve the access of micro, small, and medium enterprises to longer-tenured finance.

The bank plays a focal and catalytic role in providing funding and risk-sharing facilities to MSMEs and small corporates through financial intermediaries.

The operations of the bank also play an important role in developing the Nigerian financial sector by incentivising financial institutions, predominantly deposit-money and microfinance banks, to lend to the productive sector, using technical assistance to augment their capacity and by providing them with funding facilities designed to meet the needs of these smaller customers.

DBN was granted a licence by the Central Bank of Nigeria CBN) to operate as a wholesale development finance institution on March 29, 2017. The bank’s shareholders are the Ministry of Finance Incorporated, Nigerian Sovereign Investment Authority (NSIA), African Development Bank (AfDB) and European Investment Bank (EIB).

The bank has one subsidiary, Impact Credit Guarantee Limited, which was incorporated in March 2019 to issue credit guarantees to participating financial institutions (PFI) for  loans granted to eligible MSMEs.

First Bank of Nigeria Limited loaned N455 billion to Small and Medium Enterprises (SMEs) in the 2022 financial year.

Its Chief Risk Officer Olusegun Alebiosu, made this known during the signing of a Memorandum of Understanding (MoU) in Lagos between the bank and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) on SMEs’ growth and development.

He noted that the partnership between both parties would enable them promote businesss for the MSMEs and enhance digitisation and development of the sub-sector.

Alebiosu said the bank has continued to deploy various innovative e-payment products and services to aid SMEs’ trade and collections and create seamless  business experience. 

“At First Bank, we understand the critical roles that SMEs (small and medium-scale enterprises) play in the growth of a nation’s GDP (Gross Domestic Product) through diversification of the economy, job creation, wealth distribution, and social stability,” he said. 

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Continuing, he said: “This is one of the driving forces behind our SME Connect initiative through which we offer bespoke financing and non-financing solutions to meet the needs of our growing SME community.

“For instance, in 2022, FirstBank disbursed about N455billion in value, via tailor-made loan products to support SMEs in various industry segments and we have also continued to deploy various innovative e-payment products and services to aid SMEs’ trade and collections and in the process, create a seamless experience of doing business.

“I commend the amazing work that SMEDAN is doing with the Micro, Small & Medium Enterprises (MSMEs) sub sector in Nigeria. Your mandate of linking MSMEs to internal and external sources of finance, appropriate technology, and technical skills is one of the biggest motivations that inspired us to embark on this partnership engagement,” he said.

He explained that leveraging our SME Connect initiative, the large community of SMEs managed by SMEDAN, will be exposed to our nimble product and service offerings aimed at growing their businesses and expanding its scope and scalability.

“The partnership will also enable our Bank and SMEDAN to accelerate the digitization and ultimately, development of the SME sub-sector towards increasing its contribution and impact to the national economy. The teeming community of SMEs will be exposed to trainings, workshops, mentorship programmes, financial and non-financial interventions needed for upscaling their businesses through the entire value chain. Indeed, the opportunities are endless.’’

Alebiosu added that for almost a century and three decades of its existence, FirstBank has built a reputation for dynamism, resilience and innovation and these values have been instrumental to its constant evolution as a technology-driven bank through the many twists and turns that marked the history of banking in Nigeria.

“We are therefore poised to delivering on our commitment to provide the gold standards of services whilst living out the promise of putting our customers first. With the Bank’s presence across three continents – Africa, Europe and Asia, our international subsidiaries have continued to foster international trade relationships and partnerships which have won us many global acclaims. These and many more are the endless opportunities open to all participating SMEs through this partnership,” he said.

“I congratulate us all for being witnesses of this budding life-changing opportunity. And as we deliberate on the value propositions of this partnership, I encourage everyone to see the big picture of FirstBank being the credible partner for SMEDAN”. 

On his part,  Director-General of SMEDAN,  Olawale Fasanya,  lauded the efforts and commitment of First Bank to the growth and development of SMEs Nigeria.

He said the group will continue to take strategic steps that ensure that more SMEs repay loans from banks, including getting the members to borrow in groups to ensure ease of repayment.