Category: Money

The inauguration of First Global Transfer (FGT) to deepen international funds transfer across FirstBank’s subsidiaries in sub-Saharan Africa promotes safe, timely and efficiency in services delivery. The redefining of the bank’s operations through name and logo changes opens way for better brand clarity, uniformity and consistency across all its markets. These moves are expected to impact more positively on customers and their businesses as they explore the benefits that come with Africa and global markets connectivity, writes Assistant Business Editor, COLLINS NWEZE.

Africa and United Kingdom have for centuries, shared so many things in common. From banking, trade to services delivery, the regions recognise the power of synergy and how partnerships can support business and economic development.

 The need to expand banking beyond the shores of Nigeria has motivated FirstBank to take some strategic measures.

 The inauguration of First Global Transfer (FGT) to promote international transfer of funds across the bank’s subsidiaries in sub-Saharan Africa- FirstBank DRC, FirstBank Gambia, FirstBank Sierra-Leone, FirstBank Senegal, FirstBank Ghana and FirstBank Guinea.

 The First Global Transfer (FGT) initiative was designed to ensure safe, timely and improved efficiency in the transfer of funds across the network of FirstBank subsidiaries in Africa. The FGT is not restricted to the bank’s customers alone but it is also open to every individual resident in the country the funds transfer is originating from. 

 Intending users of the initiative are to visit any of the bank’s branches in Nigeria or subsidiaries in Africa to enjoy the service. For example, with First Global Transfer, individuals and customers in Sierra-Leone can walk into any FirstBank branch to send money to the bank’s customers in Nigeria ,  Gambia, Ghana, DR Congo, Senegal or Guinea.

 Speaking on the initiative, CEO, FirstBank, Dr. Adesola Adeduntan,  said “today’s customer is influenced by the technological advancement shaping businesses across various industries and our First Global Transfer (FGT) initiative is one of those advancement created to impact every individual in our host community in Africa, whilst promoting the ease and swift transfer of money from one country to another for business or personal activities.”

 “With the launch of African Continental Free Trade Area (AfCFTA) on January 1, 2021, the First Global Transfer (FGT) is indeed very timely as it will play an essential role in stimulating business activities across borders, thereby impacting the growth and development of the continent. I enjoin everyone to visit any one of our branches nearest to you in Nigeria or our subsidiaries in Africa and send money to your loved ones or business partners with FirstBank or FBNBank account(s),” he stated.

 Also, First Bank of Nigeria Limited recently commenced a phased corporate name change for its subsidiaries in the United Kingdom and Sub-Saharan Africa.

 FBNBank UK, FBNBank Sierra Leone, FBNBank Gambia and FBNBank DRC are the first set of subsidiaries effecting the name alignment.

 In a statement, First Bank of Nigeria Limited Group Head, Marketing & Corporate Communications, Folake Ani-Mumuney, said the institutions are now known and addressed as FirstBank UK, FirstBank Sierra Leone, FirstBank Gambia and FirstBank DRC.

 She disclosed that the Ghana, Senegal and Guinea subsidiaries will be next in the phased name change implementation.

 According to the bank, the name change is being implemented to align the subsidiaries with the parent brand and to enjoy the strong heritage and brand equity built by FirstBank Nigeria in its 129 years of banking leadership.

 This will further enhance the quality-of-service delivery resulting in better brand clarity, uniformity and consistency across all the markets where the Bank operates.

 A leading financial inclusion services provider, FirstBank Group is committed to its nation-building goal. It has taken giant performance strides on its unique growth trajectory as it continues to build distinctive capabilities through partnerships and the constant drive to reinvent itself.

 Speaking on the name change,  Adeduntan, said “ the name change which coincides with FirstBank’s 129th founding anniversary (March 31st, 2023) is indeed a milestone reflective of our resolve to continuously provide the gold standard of excellence and value as we put our customers First.” 

 Continuing, he said the new identity of the subsidiaries contributes to an enhanced brand presence. It helps our customers and stakeholders better appreciate the value of the diversified products suites, competitive pricing and extensive business networks the FirstBank Group offers.

 “These include our commitment to boosting cross-border businesses including trade and investment opportunities essential to enhancing trade relations amongst countries, thereby strengthening the economies of host communities and reducing poverty,” he concluded.

 The bank’s outstanding performance  is evidenced in the numerous awards and recognitions bestowed on the institution.  These awards include Best Private Bank for Sustainable Investing in Africa 2023 by Global Finance Awards; Best Corporate Bank in Western Africa 2022 by Global Banking & Finance; Best CSR Bank Africa by International Business Magazine in 2022; and ranked as number one in Nigeria in terms of Overall Performance; Profitability; Efficiency and Return on Risk by the Top 100 African Bank Rankings 2022 released by The Banker Magazine from the stables of Financial Times.

 In addition, in Euromoney Market Leaders, an independent global assessment of the leading financial service providers conducted by Euromoney Institutional Investor Plc., the Bank was crowned: Market Leader in Corporate and Social Responsibility (CSR); Market Leader in Environmental, Social and Governance (ESG); Highly Regarded in Corporate Banking and Digital Solutions and Notable: in SME Banking.

 Very significantly, FirstBank Group implemented a change of name and logo of its subsidiaries in the UK and across the Sub-Saharan Africa – DRC, Ghana, Guinea, Senegal, Sierra Leone and the Gambia. This change is from ‘FBN Bank’ to ‘FirstBank’ and henceforth, the subsidiaries are now  known and addressed as FirstBank UK, FirstBank Ghana, FirstBank Guinea, FirstBank Senegal, FirstBank DRC, FirstBank Sierra Leone and FirstBank Gambia.

 Analysts said the name and logo change are appropriate to ensure brand clarity, eliminate name confusion, safeguard brand uniformity and consistency across all markets where the Bank does business.

 The use of, and association with the FirstBank brand name by the subsidiaries  is expected to further strengthen its brand equity, leveraging the parent brand and heritage as well as other brand monolithic benefits of the FirstBank Group’s performance strides which  includes its unique growth trajectory as it continues to build distinctive capabilities through partnerships in a new era of a return to greater and better times ahead.

 Also, FirstBank Group is not only safe and secure, but also has remained dynamic and innovative in meeting its stakeholders needs.  

 The FirstBank Group provides value to customers through diversified products suite, competitive pricing and large business network spread across three continents which enhance cross-border businesses activities across multiple locations and impacting indigenous businesses and institutions. 

 At 129 years, FirstBank Group remains woven into the fabric of the society; committed to its nation-building goal, resilient and enduring driven by the constant desire to reinvent itself. FirstBank UK recently turned 40 – in 2022. This is indeed a milestone which throws weight on the projected longevity of other subsidiaries in Africa.

 FirstBank’s veteran status in the Nigerian Banking space is a key strength that attracts business due to the knowledge, experience, and strength of the Firstbank brand. Its subsidiaries across Africa and UK thrive on this history and knowledge.

The Nigeria Sovereign Investment Authority (NSIA) is putting the Federal Government’s investible assets into profitable ventures. From power, healthcare and agriculture to investment in technology, the agency, which also manages the Nigeria’s Sovereign Wealth Fund (SWF), has posted huge returns across its investment spectrums. With N1.02 trillion assets and N97 billion profit in the 2022 financial year, the agency is converting investment opportunities to growth, writes Assistant Business Editor COLLINS NWEZE.

To say that the global economy quaked last year was an understatement. Many businesses, which posted huge returns in previous years, faced tough operating environment that caused their income lines to shrink, leading to significant operational cut.

The 2022 financial year was marked by unprecedented shocks, such as the COVID-19 lockdown in China, the Russia-Ukraine conflict, food and energy crises, supply-chain disruptions, soaring inflation, and monetary policy tightening, which precipitously impacted the financial markets.

For instance, last month, the Central Bank of Nigeria (CBN) led by Godwin Emefiele, raised benchmark interest rate -Monetary Policy Rate (MPR) by 50 basis points from 17.5 per cent to 18 per cent to tame inflation.

Like other emerging and frontier markets, the Nigerian economy faced multi-dimensional challenges during the year. From surging inflation primarily driven by food prices to declining oil output and weakening currency, the prospect for growth diminished as the year wound down.

That trend continued across various sectors – from the financial sector, manufacturing, insurance, agriculture, power to even tech services.

The Managing Director, International Monetary Fund (IMF), Kristalina Georgieva, gave credence to this when she said the global economy faces its ‘’biggest test’’ since the Second World War. 

Despite these hiccups, the Future Generation Fund (FGF) managed by the Nigeria Sovereign Investment Authority (NSIA) adopted a different strategy that saw it posting huge returns.

The approach was centered on generating healthy risk-adjusted returns, cautiously increasing market exposure, and growing the tactical allocation portfolio Exchange Traded Funds (ETFs) within the year.

Overall, its portfolio delivered a return of 1.87 per cent (in US dollar terms) for the year ended 2022.

The Future Generations Fund outperformed its Sovereign Wealth Funds peers by 10 per cent on average, with Private Equity being the top-performing sector. Developed equity, hedge funds, and emerging long only equity posted a decline in the year due to prevailing macroeconomic market conditions.

For Stabilisation Fund (SF), the NSIA stated that it is largely invested in the U.S.’s sovereign debt instruments and Investment Grade Corporate Credit. It noted that by last December, approximately 30 per cent of the fund was invested in a portfolio of U.S. treasury bonds tracking the Bloomberg Barclays U.S. Treasury bond one-three-year index. The fund returned 4.08 per cent (in US dollar terms) for the year.

Overall, the NSIA’s audited results for the 2022 financial year showed its total assets grew 10.5 per cent to N1.02 trillion up from the N919.73 billion recorded in 2021.

Its non-volatile revenue such as interest income, revenue from infrastructure business, and management fees earned from fiduciary activities, increased by 34.5 per cent (N15.7 billion) year-over-year.

Total Comprehensive Income of N96 billion in 2022 representing a decline of 34 per cent relative to 147 billion in 2021 due largely to strong macroeconomic headwinds. Nonetheless, the agency was able to outperform most global investment benchmark and indices to deliver a respectable performance.

The financial performance underscores the resilience of the NSIA’s investment strategy, and the quality of its earnings given the challenging macroeconomic environment.

Highlights of NSIA’s activities and performance during the period showed that it recorded its 10th continuous positive earnings despite  volatility and headwinds across markets.

The Managing Director/Chief Executive Officer, NSIA, Aminu Umar-Sadiq, said the performance was recorded despite the challenges in the operating environment.

He said: “Against market expectations and internal forecast, NSIA closed the 2022 financial year with a respectable performance. This result underscores the robustness of our diversified portfolio, and the excellent commitment of the team…”

He continued:  “As we look to the future, NSIA is resolute in its commitment to delivering increased investments in critical sectors of the economy, driving growth across its funds, and attracting third party capital into Nigeria’s infrastructure sector.

“In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, innovation, and healthcare – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes.’’

The earnings of the NSIA Group at the end of 2022 was N96.96 billion, which is 34 per cent less than the N146.98 billion recorded in 2021. This decline was primarily attributable to the performance of our Future Generations and Stabilisation portfolios that are invested in emerging and developed financial market instruments.

NSIA’s a well-diversified portfolio continues to provide the resilience to withstand market challenges as evidenced by the results.

Although the Group’s earnings are lower than that of 2021, the NSIA Group said it remains confident in its investment strategy and will continue to explore opportunities to mitigate risks and achieve its investment objectives.  On the Nigeria Infrastructure Fund (NIF), the company also reached a significant milestone in implementing its infrastructure strategy by delivering key projects. These projects cut across our core sectors of focus and the implementation of specialised federal government initiatives.

In Agriculture, the Presidential Fertiliser Initiative (PFI), 72 blending plants have been included in the programme starting from 11 in 2017.

In 2021, NSIA divested its interest in NAIC-NPK (now PFI-NPK), ceding its interest to the Ministry of Finance Incorporated (MOFI) while the management of the programme remains with the Authority. The PFI-NPK reported a profit last year, the second in a row, signalling a departure from prior import substitution programmes for fertiliser.

After about three years of development and construction, the Pandagric Novum Farm, a joint venture between NSIA and Signature Agri Investment, was inaugurated last September by Vice President Yemi Osinbajo.

The integrated farm is sited on 3,500 ha of land for the cultivation of maize and soybeans and connected to a 147,000 metric tons per annum capacity poultry feed mill. It has 75,000 tons of storage infrastructure consisting of two silos and six bunkers, as well as 35,000 tons of raw material and finished goods storage.

During the year, NSIA introduced the NSIA Prize for Innovation (NPI)  to stimulate the innovators and technopreneurs to develop solutions that address real-world challenges with global application.

The NPI programme is a business enhancement initiative to support early-stage, growth-driven tech solutions through education, mentorship, and financing. It aims to catalyse the growth of the technology ecosystem by identifying budding innovators, enhancing their capabilities, and providing a platform to scale their solutions globally.

The Multi-Purpose Industrial

Platforms Project

Under its gas industrialisation initiative, the Authority and its partner OCP Group of Morocco made significant progress in the development of the 1.5MMT Ammonia and Di-Ammonium Phosphate production plants due to be cited in Akwa Ibom State.

The development of the project has reached an advanced stage, with  preliminary studies concluded.The Gas Supply and Aggregation Agreement is being finalised with relevant parties, and financing is in place to ensure the delivery of the project.

In the 2022 financial year, NSIA continued its development of various projects under the Presidential Infrastructure Development Fund (PIDF), namely the Lagos-Ibadan Expressway (LIE), Second Niger Bridge (2NB), and Abuja-Kaduna-Kano Highway (AKR). These projects have reached advanced stages of construction, building on the successes of the 2021 financial year. The initial scope of the AKR was completed, and significant progress was achieved on the 2NB and LIE. NSIA has kicked off the roll-out of Phase Two of its healthcare projects on the successes of the LUTH Cancer Centre and its two diagnostic centres in Kano and Umuahia.

During the year, the Authority secured approval and began developing 23 new modern medical diagnostic centres of excellence, which will span six geopolitical zones in the country. At present, two Oncology centres billed for Enugu and Kaduna states, and six Cath Labs have advanced to the project execution stage.

On another note, NSIA has incorporated an equipment leasing company, Equilease. This is in fulfillment of NSIA’s commitment to bridge notable voids in the domestic healthcare value chain. Equilease was conceived to stimulate the proliferation of high-quality medical infrastructure in Nigeria by providing alternative financing options for acquiring critical medical equipment via equipment leasing.  

NSIA completed the 10MW Haske solar power plant in Kano in 2022 as its flagship renewable energy sector project. The power plant was developed for the Federal Government and its subnational co-investors to provide off-grid electricity in the Kumbotso Local Government of Kano State.

In the 2022 financial year, the pioneer Managing Director/CEO, Uche Orji, completed his second and final tenure last September 30, and a new Executive Management team led by Mr. Aminu Umar-Sadiq was appointed by President Muhammadu Buhari the following month. Two other Executive Directors, Kola Owodunni and Olubisi Makoju, were appointed to NSIA’s Board.

Looking forward, the Authority said it remains committed to managing Nigeria’s sovereign wealth fund in a transparent, accountable, and competent manner.

The Authority’s solid foundation, seasoned staff members, and diverse portfolio will enable it to overcome any obstacles and provide long-term value to its stakeholders.

It stated that the year will be an equally challenging investment period due to the lingering effects of the Russia-Ukraine conflict, the activities of central banks of developed economies in curtailing inflation, and de-globalisation challenges.

It added that the focus on ESG, sustainability and climate finance will play a vital role in its investment approach and strategy going forward.

The NSIA said it will continue to drive direct investments in its core areas of healthcare, toll roads, gas industralisation, technology, ESG, financial markets infrastructure, toll-roads, power and agriculture.

The NSIA has opened discussions with the Federal Government to manage some of its assets in the power sector, real estate, and industrial sector, among others. Some of these assets have been under-utilised for many years without adding any economic value to Nigeria.

Therefore, asset transfers will be an important component of the NSIA growth strategy in the medium-to-long term as the Authority sees significant opportunities in the Federal Government’s portfolio of power and real estate assets. Nigeria has unproductive assets scattered across various parts of the country, which the government can leverage to grow its revenue stream and fulfill its financial obligations. The NSIA reached major milestones across domestic infrastructure projects specifically in motorways, agriculture, healthcare, technology, and gas industrialisation, among others.   NSIA said it will continue to drive direct investments in its core areas of healthcare, toll roads, gas industralisation, technology, financial markets infrastructure power and agriculture.

Banking is moving beyond meeting customers’ needs in the immediate environment. Financial institutions with foresight are now moving to something more impactful to businesses and economies. Issues around trade finance and linking African importers, exporters, beneficiaries, trading companies and other business transactions between Africa and the rest of the world are major considerations in today’s banking operations, writes Assistant Business Editor, COLLINS NWEZE.

Africa has a very long and captivating history. It is the world’s second-largest and second-most populous continent, after Asia. The continent’s commitment to business is dated several centuries back.

For instance, as early as the 15th century, Europeans, particularly the Dutch and the Portuguese, had begun trading items, such as cloth and metal ware in West Africa.

But the means of settlement of transactions have always been part of the challenges, making it difficult for the businesses on both sides to realise the full benefits of the transactions.

But all that has changed as some leading financial institutions on the continent take the lead of import and export trade facilitation.

United Bank for Africa (UBA) America is  strategically positioned in the United States to support trade between Africa and the rest of the world.

The financial institution is doing this by offering trade finance and other funding solutions, linking African importers and exporters, beneficiaries, trading companies and other business to others.

Managing Director, UBA America, Sola Yomi-Ajayi, explained that predominantly, the trade is denominated in US dollar and UBA America’s ability to settle US dollar with the Federal Reserve provides the edge over other African competitors.

She said the UBA America has invested in the requisite people, systems and processes to offer seamless services to customers.

“By its vast geographical spread, UBA is eminently positioned to dominate the flow of goods and capital in and out of African countries. Its position is further strengthened by having subsidiaries, branches, and representative offices in the major global trade hubs.

“Cote d’Ivoire and Senegal are two major reference cases.The two major state refineries in these two locations use UBA as a prominent bank in financing bulk energy-linked commodities,” he said.

She explained that trade facilitation and access to credit facilities that finance import and export transactions provides tangible impact and the bank plays the role of a driver of development in Africa.

“Improving the availability of trade finance could boost trade volumes by eight to 16 per cent (as per a study conducted by IFC), supporting economic growth and diversification. UBA facilitates cross border trade by providing trade finance and intermediary services that allow an unhindered exchange of goods and services,” he said.

Yomi-Ajayi said UBA America offers account-based banking services in USD, EUR and GBP to a various financial institutions, counterparties and corporate beneficiaries.

UBA America deals with financial institutions and EMDOs by assisting them with their FX and payments to Africa, thus facilitating the aid and trade flows between the U.S. and Africa, contributing to the economic development.

“The Embassies, Multilateral and Development Organisations’ (EMDO) group is focused around building relationships with such entities and to serve their banking needs by facilitating payments to Africa. Additionally, the bank established a partnership with USAID through the Prosper Africa initiative to increase the two-way trade and investment between America and Sub-Saharan Africa,” she stated.

 “The partnership ensures businesses are well-equipped with the technical and financial tools they need for trade and investment relationships. Leveraging our digital banking and cash management solution, we are  working with a number of multilaterals to provide financial intermediation to internally displaced persons in the Northeast and Southern Nigeria,” she said.

UBA’s entry into UK, Dubai

The United Bank for Africa (UBA) Group has started full banking operations in United Kingdom (UK).

The UBA UK is seen by many as the easiest route to link the bank’s customers across the world to global financial hubs and promote trade deals between Africa and Europe.

The UBA UK, previously named UBA Capital (Europe), offers treasury services, cash management, correspondent banking, corporate lending and wholesale deposit products to professionals and eligible counter-parties. It also provides structured and trade finance, issuance, acceptance, confirmation and refinancing of Letters of Credit of different variations among others.

 UBA Group further consolidates its unique positioning as a Sub-Saharan African financial institution with banking in the UK and the U.S. This reinforces its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the world.

UBA Group Chairman Tony Elumelu said the Group is excited by the authorisation of the relevant regulatory authorities in the UK for UBA to upgrade its operation and further fulfill its aspiration of deepening trade and investments flows between Africa and Europe.

Elumelu said: “I am very impressed with the Board and Management of UBA UK for this wonderful attainment of the procurement of licence to operate full banking services in the UK. Now is the first time we are operating in UK as a full-fledged bank. I am happy that this is happening. At the UBA Group, we are Africa’s global bank. We operate in 20 countries in Africa, and have over 17 million customers. But one thing that is important to us is helping to link our customers to the financial centres of the world. We are the only African bank that operates in the U.S. that is regulated in the U.S.”

Speaking on the strength of its operations in the UK, he said: “London, traditionally, is the financial centre of the world. To us, we are not just another Nigerian bank operating in the UK, we are Africa’s global bank. I say this because we operate in 20 African countries, and in the U.S. So, it is important that we support our customers from the New York. To us at UBA, at customer service, most things we do, they align with our customers aspirations and customers need to grow. As SMEs need to do well, they want to succeed. They want to do their business and pass it in the right direction. We are here to support. The big businesses come, and we are coming to support them.”

The opening of UBA Plc, Dubai International Financial Centre (DIFC) branch at the Dubai International Financial Centre (DIFC) was remarkable in many ways.

First, it gives the UBA Group access to $7.7 trillion Middle East, Africa and South Asia (MEASA) markets enabling it to be at the centre of trade in these regions.

Secondly, the strength of Dirhams is expected to rob off positively on the naira and give the bank wider access to foreign exchange earnings.

The UBA Group is already a household name in banking across many countries, with its drive for expansion to new markets aligning with the determination to bring banking closer to the people not only in developing nations, but also in advanced economies.

UBA Group’s foray into Dubai enables it harness opportunities in the MEASA, which comprise 72 countries with an approximate population of three billion.

The UBA Plc (DIFC Branch) operates under the Category Four licence and regulated by the Dubai Financial Services Authority (DFSA), which is the financial regulatory agency of the special economic zone, the DI FC.

Elumelu said DIFC Branch was a strategic move by the bank to connect African businesses to Gulf investors and deepen  the African economies.

This will reinforce its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world.

Elumelu said: “We are happy that Africa’s global bank is fulfilling its dreams of helping to finance trade, infrastructure for our people who are industrious and committed to Africa’s dream of prosperity. UBA Dubai is not for Dubai alone, but for the entire region.

“We are looking forward to celebrating UBA at 10, 20 and 30 years in Dubai. May God prosper your businesses for you to do more with u.

“It is beyond the Middle East, but the Far East as well. In the first instance, we believe that Dubai should serve this area. We have a lot of customers who do business in the Far East. We want to be that bank that helps to support our people who do business in any and every part of the world. That is why we are called Africa’s global bank. We are happy that Dubai is happening and sometimes soon the Far East would also come on stream.”

Sustaining profitability, asset growth 

United Bank for Africa (UBA) Plc recorded N201 billion profit in its audited financial results for the full year ended December 31, 2022.

The 2022 financials, filed by the bank at Nigerian Exchange Limited (NGx), showed that gross earnings grew by 29.2 per cent to N853.2 billion, against N660.2 billion recorded at the end of the 2021 financial year.

Total assets rose by 27.2 per cent, crossing the N10 trillion mark, to close at N10.9 trillion in December 31, 2022, higher than N8.5 trillion achieved in same period of 2021.

The performance showed  significant achievement and milestone in the history of the powerhouse financial institution despite the highly challenging global economic and business environment.

UBA equally recorded a laudable Profit Before Tax (PBT), with a 31.2 per cent growth, to close the year under review at N200.8 billion.

The PBT rose from N153.01 billion recorded at the end of the 2021 financial year; while profit after tax (PAT) grew by 43.5 per cent to N170.2 billion in 2022, higher than N118.7 billion posted the previous year.

Also, UBA Group Shareholders’ Funds rose to N922.1 billion, as at December 2022, representing 14.6 per cent uptick from the privies year’s performance.

UBA Group’s cost-to-income ratio dropped to 59.2 per cent, from over 60 per cent in prior year, pointing at the Group’s improving efficiency.

In its usual tradition of rewarding shareholders, the bank proposed a final dividend of 90 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2022. The final dividend, which is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM), will bring the total dividend for the year to N1.10 per share, as the bank had paid an interim dividend of 20 kobo, based on its audited 2022 half year results.

UBA Group Managing Director/CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, the bank’s continue to deliver significant performance.

 He said: “The Group delivered record headline earnings (+29.2 per cent) and profitability (+31.2 per cent) amid significant headwinds in markets where we are present and a heightened global risk environment. Our record earnings, growth, and robust capital levels supported higher returns for the shareholders. The Group is on course to achieving its strategic goals, and we are confident we will deliver our targets.”

An Nigeria, Small and Medium-sized Enterprises’ (SME’s) contribute to 48 per cent of the national Gross Domestic Product (GDP).

A recent report by PwC Nigeria shows that women account for 41 per cent ownership of micro-businesses in Nigeria, with 23 million female entrepreneurs within this segment. This shows that women are a major driving force in economic development in Nigeria, however, a lot of women-owned businesses struggle to survive. 

A lot of women-owned businesses suffer major setbacks due to some challenges, including lack of proper business skills and knowledge, family and societal limitations, lack of proper business structure and limited access to finance (which is usually highlighted as a major problem).

The Nigerian government through several schemes by the Ministry of Women Affairs and provision of low-interest loans by the Bank of Industry, has tried to solve some of these challenges; however, there is still a huge gap to be filled, as the government alone cannot solve these problems. 

It is important that the private sector proactively supports the government’s effort to help with the growth and advancement of women-led businesses. A good example of how private organisations can support female entrepreneurs is the Y’ellopreneur initiative by MTN Foundation. The program includes a four-week training program for 500 female entrepreneurs and equipment loan for the top bankable business ideas. Some other examples include the Flourish Africa grant and the Womenpreneur pitch-a-ton initiative by Access bank. 

Despite a few organisations supporting the growth of women businesses, these challenges are very present, and there is a need for more organisations to actively support the government in advancing this cause. Based on available data on the impact of women-owned businesses, one can rightly say that the development of women entrepreneurs equals economic growth for Nigeria. Hence it will be beneficial to have a lot of organisations within the private sector invest in supporting women all year long. 

Organisations can support by providing access to curated education and training, which can help cultivate the growth of women-owned small businesses. This can be done by publishing guides, providing resource hubs, hosting financial literacy training, and other educational opportunities. 

Organisations can also help by way of connecting women-owned small businesses with each other and with local and international institutions that can support their successes. Private organisations can also support by providing funding in form of loans or grants for female entrepreneurs, that way they can easily scale their businesses, provide job opportunities and at the same time, contribute to the growth of the Nigerian economy.

Union Bank of Nigeria (UBN) has signed a commercial partnership agreement with Choice International Group (CIG) Motors Limited, a member of CIG Group of Companies, to provide auto financing services to the bank’s customers on purchase of GAC range of cars, through its asset finance loan scheme.

The deal, which was recently signed at Stallion Plaza, Union Bank’s head office in Marina, Lagos, will allow customers to purchase brand new GAC vehicles with as low as zero per cent interest and N242,000 monthly installment.

In addition, subscribers to the Union Bank asset finance loan scheme will enjoy after-sales service and warranty during the tenor of the financing as well as access to other products from CIG Group at competitive prices.

Speaking at the signing ceremony of the agreement,  Managing Director/Chief Executive Officer of Union Bank,Mudassir Amray, said: “I am genuinely delighted to have a partnership with CIG Group who are inevitably a market leader in terms of providing quality products at affordable prices.”

We are determined to bring value to our clients through partnerships, be it healthcare, cross border business or transportation. We are convinced that with this agreement, our customers will be able to buy quality cars with easy payment terms, which will provide comfort and convenience to our customers.”

Also commenting on the partnership, Chief Diana Chen, Chairman of CIG Group urged potential car owners to take advantage of the partnership and purchase brand-new vehicles that will withstand the test of time.

This partnership is a culmination of Union Bank and CIG Group’s desire to collaborate and explore mutually beneficial business opportunities. This strategically aligns with the bank’s aim to examine various options to provide financial support and incentives for its customers.

Malls and supermarkets in major cities are making huge sales following the ongoing CBN currency reforms and redesigning of the N200, N500 and N1,000. 

The policy shift has led to massive cash shortage, which  became pronounced in the past few weeks.

Many filling stations are also focusing on PoS transactions, while some retail shops are run 100 per cent on PoS and e-transfers.

“Our manager asked us not to take cash, whether new or old notes. All transactions must be either through PoS or e-transfer,” a shop attendant, disclosed on the owner’s decision to go cashless. 

So far, the hardest-hit by the naira redesign policy are individuals, small businesses, transport firms and cocoa farmers who depend on  the informal economy, which the International Monetary Fund (IMF) estimates account for more than half of the nation’s gross domestic product.

Also, shop owners in the Federal Capital Territory (FCT) said their sales volume has increased following the implementation of the CBN’s  currency reform programme. 

The malls managers said they were recording tremendous sales as customers  use PS machines, and electronic transfers instead of cash.

Mr Sunday Ahmadu, who operates a mini supermarket along Jukwoyi road, said his sales had tripled within this period, especially after the phasing out of the old naira notes.

Another provision and foodstuff trader, Malam Ibrahim Sule, also expressed excitement over the development, saying that the difficulty faced by people to access the new naira notes gave him an edge over other traders who lacked PoS and electronic banking platforms.

Sule, popularly called Baba, said the volume of his sales had gone up as people who were stranded because of the cash crunch, were making his shop a last resort in purchases to feed their families and meet other needs.

According to him, there may be hitches in transactions most times, but that he can always reconcile with his banks because of his long time experience in POS transactions.

“Many desperate people are being referred to my shop because of the current lack of cash.”

“This made me to introduce more perishable items due to popular demand. I am happy to meet their needs and make more money.”

Mrs Nnenna Ozor, another trader, while narrating her experience said she used to be skeptical about online transactions, but recent events had forced her to embrace online transactions which was aiding her business.

Ozor listed the advantages associated with the cashless policy implementation to include; increased patronage, profit and curbing of debt by customers who often bought goods on credit.

She, however, said the only challenge in accepting the transfer was the refusal of other traders, especially petty businesses, to accept online transactions as they often requested for cash.