The Nation Newspaper

Category: Money

FirstBank expands to DR Congo

First Bank of Nigeria Limited, a subsidiary of FBN Holdings PLC and Nigeria’s most valuable bank brand today unveils FBNBank DR Congo, formerly registered as Banque Internationale de Credit (BIC).

In 2011, FirstBank acquired 75 per cent equity interest in BIC and immediately reinforced it as one of the strongest banking institutions in the DRC. Following the recent approval by Central Bank of Congo (BCC), the Banque Internationale de Credit has now become FBNBank DR Congo, a subsidiary of First Bank of Nigeria Limited.

FBNBank DR Congo is strategically positioned to foster greater collaboration and provide better service for the country’s public and private sector clients, and the general public at large.

The launch further consolidates FirstBank’s position as the largest corporate and retail banking financial institution in sub-Saharan Africa (excluding South Africa) with presence in Ghana, Guinea, Gambia and Senegal as well as presence in the UK and representatives offices in Johannesburg, Paris, Abu Dhabi and Beijing, China. The expansion represents FirstBank’s strategic objective to maintain significant market share, expand its pan-African footprint and diversify earnings while delivering value to shareholders.

With over 35 branches in DRC, FBNBank DR Congo leverages FBN’s international network, business expertise, which is part of the diversified synergies of the FBN Group to offer innovative, convenient and secure banking services to its customers and better seize the emerging opportunities of the market.

February 2, 2015
Stakeholders urge govt to build developmental plan on capital market

Stakeholders in the Nigerian capital market yesterday in Lagos reached a consensus on the need for the government to build its developmental agenda on the capital market with the market playing the central role in financing of key infrastructure and economic programmes.

At a one-day dialogue on the “Capital Market and the 2015 Federal Budget” organized by the Chartered Institute of Stockbrokers (CIS), Association of Issuing Houses of Nigeria (AIHN) and Association of Stockbroking Houses of Nigeria (ASHON), stakeholders in the Nigerian capital market said government should actively engage the market as platform for its economic programmes.

According to them, the capital market must take the front role as the most reliable medium for government to source for funds to finance critical infrastructure.

Acting director general, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, noted that the infrastructure needs of the country are too massive to be dependent on the meager yearly budgetary allocation pointing out that infrastructure deficit has been estimated to cut about two percentage points from Gross Domestic Products (GDP) growth annually in Nigeria.

He pointed out that the Nigeria Integrated Infrastructure Master Plan (NIIP) has stated that about $3.9 trillion is needed over the next 30 years to bridge infrastructure gap while a similar study by the African Development Bank (AfDB) puts the needed investment at $350 billion over 10 years.

“In an era of fiscal constraints and increasingly stringent capital requirements on banks attention must focus on capital markets to provide the funds needed to finance energy, transportation and social infrastructure projects, beyond the budget,” Gwarzo said.

He challenged capital market operators to develop clear and actionable ways in which the capital market could be better leveraged by all tiers of governments to finance infrastructure.

“We must look beyond this to structure more innovative products including infrastructure bonds and securitization. To boost housing we must hasten the takeoff of mortgage-backed securities after the activities of the Mortgage Refinancing Company of Nigeria have led to a higher housing stock,” Gwarzo said.

In his address, chairman, Capital Bancorp, Mr Olutola Mobolurin, noted that the impact of economic downturn on the capital market was not addressed in the 2015 budget except with the plan to boost insurance and possible government bond issuance.

According to him, the 2015 budget should have addressed more comprehensively the dampening effect of budget initiatives such as higher taxes and lower expenditure on disposable income and therefore savings and investments.

He noted that dwindling public capital expenditure demands increased private sector investment from both the local and foreign investors adding that there should be incentives for higher capital formation rates to boost economic growth and development.

“It is desirable for government to seek how to moderate the destabilising influence of foreign portfolio investors in the Nigerian capital market by boosting increased domestic participation in the market. Reduced foreign exchange earnings poses continuing threat to exchange rate stability and foreign portfolio investors’ level of participation in the market,” Mobolurin said.

January 30, 2015
‘Why we’re defending naira’

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has said that government will continue to intervene to keep the exchange rate stable because of the dire consequences of doing otherwise.

Speaking at a meeting with stakeholders in Lagos, he said that the apex bank is committed to achieving exchange rate stability, adding that allowing the local currency to find its level will not be in the interest of the economy and the larger population.

The naira yesterday, opened at a record low of N192.60, down 0.26 per cent from its previous close, due to tight dollar supplies. The naira has been hitting record lows against the greenback this year as dollar liquidity dries up in the wake of tumbling oil prices, Nigeria’s main export. The unit closed at a record low of N192.10 to the dollar.

The Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said that it has been established that when left on its own to adjust to the dynamics of demand and supply, the exchange rate will automatically find its fair value.

He said despite this and the attendant advantages, very few economies are willing to accept the uncertain-ties accompanying floating exchange and allow their currencies to freely move against other currencies.

“This is because it is often seen as too important a macro-economic variable to be left un-guided as its state and movements can have serious implications for the economy. For instance, episodes of depreciation are often accompanied by imported inflation and worsening positions of local firms that borrow in foreign currencies. Conversely, currency appreciation may also lead to the loss of export competitiveness,” he said.

Rewane said with the floating system representing an extreme case of ex-change rate determination, many countries employ the other extreme of fixing their currency, either to that of a major trading partner or to a group of trading partners.

“The hypothetical justification for this is that a pegged/fixed exchange rate system is less vulnerable to speculative attacks. Second, it promotes international trade and investment as there is less risk coming from currency fluctuations. It also provides discipline for macro-economic policies even as excessive monetary growth will be discouraged since the authorities know that it will lead to devaluation,” he argued.

Such development, he said, show that countries that practice the pegged system enjoy a relatively stable inflation environment as well as improved trade and capital flows.

January 29, 2015
FMDA gets new Governing Council members

The Financial Market Dealers Association of Nigeria (FMDA) has named new Governing Council Members for the group at its 22nd Annual General Meeting held in Lagos.

A statement signed by its Executive Secretary/CEO, ‘Wale Abe, named David Adepoju of Standard Chartered Bank Limited as the President, while Adebayo Adeyemo of Citibank Nigeria is Vice President.

Also, Michael Anyimah of Zenith Bank, Tolu Obadagbonyi of Kakawa Discount House and Kayode Obatusin, Rand Merchant Bank were named members of the group.

Ayo Babatunde of Ecobank Nigeria, Akinsowon Dawodu of Citibank and Ini Ebong of FirstBank Nigeria Limited are now Ex-Officio members.

It said the new officers would run the affairs of the Association for the next two years.

Abe said the association is willingness to continue to promote the tenets of sound ethical and professional market practice aimed at ensuring market transparency and price discovery in its dealing activities.

He said the body will partner with the regulatory authorities and other major stakeholders to facilitate the deepening of the Nigerian financial markets in line with global standards, so as to competitively attract both local and foreign capital into the nation’s economy.

January 29, 2015
Access Bank achieves 100% tax compliance

Access Bank Plc yesterday, received recognition from the Lagos State Internal Revenue Service (LIRS) for achieving 100 per cent tax compliance. The Lagos State Governor, Babatunde Fashola presented the award to the bank.

Receiving the award, the Group Managing Director, Mr. Herbert Wigwe, said the lender is grateful to be so recognised as a tax compliant institution.

“We know of only one way to conduct our business and that’s the socially responsible way. We encourage the LIRS to continue their good work as the quest for a better Lagos is the responsibility of all,” he said.

Wigwe was represented by the bank’s Chief Financial Officer, Seyi Kumapayi.

Fashola said tax payment is a social contract between the government and the governed which must be kept. While commending the bank for being a tax compliant organisation, he said revenues from taxation have helped the state to fulfill its developmental roles to the people.

He said the Lagos State government has built a tax system that works and that it has sustained the state in the face of declining oil price.

“The price of oil has dropped drastically. The federal allocations to the states have dropped. In spite of those droppings, Lagos State has paid salaries regularly. We paid 15 per cent bonus in December because we created a model of public finance that works,” he said.

The governor said that Lagos State will continue to thrive because it implements a robust tax administration which he said should be emulated nationwide.

Executive Secretary, Manufacturers Association of Nigeria (MAN), Joseph Emoleke agreed that the dwindling state of the nation’s revenue profile is no longer news to discerning Nigerians.

He said while some governments, especially at the states’ level, have over the years, deliberately tinkered with their revenue mix for funding government operations thereby insulating the operations of government from oil revenue volatility, regretably to a large extent, others have not, he stated.

January 29, 2015
CBN approves chairman, vice for Unity Bank

The Central Bank of Nigeria has approved the appointment of Mr Thomas A. Etuh and Alhaji Aminu Babangida as Chairman and Vice Chairman of the Board of Directors of Unity Bank Plc.

A statement from Unity last night, said this approval was contained in a letter to the Bank dated January 23, 2015 and signed by the Director of Banking Supervision, Mrs Tokunbo Martins.

It noted that “their appointments followed the resignation of the former Chairman, Alhaji Lamis Shehu Dikko from the Board in December 2014 to pursue his political aspirations.”

Unity Bank said Mr Etuh, who was appointed pioneer Vice Chairman of the Board of Directors, on April 22, 2014 has varied experience, gained from over two decades of contribution to the public and private sectors of the economy, especially the agric sector of the economy.

The new Vice Chairman Alhaji Aminu Babangida, is the son of former military Head of State, General Ibrahim Babangida, an Entrepreneur and a co-founder/CEO of Phoenix Energy, Abuja. He was appointed to the Board of Unity Bank Plc in 2011.

He has held chairmanship and membership positions in a number of board committees, including Credit Committee, Audit Committee, Information Technology & Strategy Committee, among others.

January 29, 2015
13,000 debtors owing AMCON, says Chike-Obi

The Asset Management Corporation of Nigeria (AMCON) yesterday said it is still being owed debts valued at billions of naira by 13,000 debtors.

Its Managing Director, Mustafa Chike-Obi who spoke yesterday while handing over Enterprise Bank Limited and Mainstreet Bank Limited to Heritage Bank Limited and Skye Bank Plc respectively, said the corporation made over 25 per cent returns from each of the lenders, adding that it plans to sell Keystone Bank Limited immediately after the general elections next month.

Chike-Obi commended the buyers while the AMCON Chairman, Alhaji Aliyu Kola Belgore presented awards to the former management of the bridged banks. Skye Bank and Heritage Bank also got goodwill letters from the corporation.

The AMCON chief said bridging the banks was a necessity because of their impact on the banking system. He said it was the corporation’s choice to divest from the banks adding that the decision has been worthwhile.

Managing Director, Heritage Bank Limited, Ifie Sekibo thanked the former Managing Director, Enterprise Bank, Ahmed Kuru for efficiently managing the bank by taking up the responsibility of assisting the Central Bank iof Nigeria (CBN) to stabilise the bridged bank and returning it to profitability.

Group Managing Director of Skye Bank Plc, Timothy Oguntayo, said the bank saw value and synergies in the acquired bank and promised to harness and optimise the value. He thanked the regulators for granting all the required clearance and approvals that paved the way for the acquisition and eventual takeover.

CBN Governor, Mr. Godwin Emefiele, warned against a reoccurrence of the factors which led to the takeover of the three bridged banks.

He said if the bridge bank option had not been adopted in 2011, the systemic crisis in the banking sector would have been unprecedented and costly in terms of its effects on other banks.

HBCL Investment Services Limited (HISL) is promoted by Heritage Bank paid N56 billion to acquire Enterprise Bank from the AMCON.

Sekibo said the acquisition will enable the bank become bigger and more innovative. He said the combination of the two banks will produce a force to be reckoned with and a paradigm shift in the banking industry.

“We have always seen Enterprise Bank as one of the potential giants in Nigeria’s banking landscape. With a truly vast branch network, innovative and professional staff, solid assets and large customer base, Enterprise Bank is easily one of the preferred banks for value creation wherever you might be in the country.

“The partnership process will seamlessly birth an entity that would be optimum of excellence and innovation. In less than two years, we have redefined the concept of banking and emerged as one of the fastest growing banks in Africa. Partnering with Enterprise Bank, whose vision is in line with ours, will ensure we continue delivering distinctive financial services, building on our legacy of innovation while creating, preserving and transferring wealth across generations,” Sekibo said in a earlier statement.

January 28, 2015
Paga chief speaks at confab

Tayo Oviosu, founder and CEO of Paga, a payments service firm, was one of the 150 influential opinion-makers and industry leaders from across the globe that spoke to over a 1,000 delegates at the 2015 Digital Life Design (DLD) conference in Munich, Germany.

Tagged as, “Europe’s hottest conference invitation”, DLD is an international network on innovation, digitalisation, science and culture; which unites some of the greatest minds for crossover conversations and inspiration.

Oviosu was on a panel on the impact of “Mobile & Technology In Emerging Markets”. The panel also had Anand Chandrasekaran (Chief Product Officer at Airtel), Harry Nellis (Partner at Accel Partners) and was moderated by Ina Fried(Senior Editor at Re/Code).

Oviosu shared his perspective on how harnessing technology to provide access to viable payments channels was the key to unlocking Africa’s full economic potential.

“The inability to pay for goods and services in simple and secure way is one of the key issues stifling Africa’s economic potential and I believe there is a real need to continuously explore the possibilities provided by internet connectivity and mobile technology to create long lasting viable solutions; not just for the average man on the street but also for businesses and public sector initiatives. Paga is solving this problem daily through our robust platform, an ecosystem of over 7,000 agents in local communities, over 3,000 businesses, and 2.3 million users.”

Oviosu founded Paga in 2009 as a response to his own challenges with handling cash and not being able to pay for goods and services in an efficient way. Five years later, the wholly indigenous brand continues to leverage on its in-house technology team to create products for Africa’s unique challenges with a view to broadening their geographical reach in the near future.

January 28, 2015
IMF urges caution in Eurobond borrowing

The International Monetary Fund (IMF) has warned African countries against rushing to issue Eurobonds, saying they may face exchange rate risks and problems repaying debts.

African governments facing falling levels of foreign aid are on a borrowing spree to pay for new roads, power stations and other infrastructure, prompting concern from many analysts that this could raise debt levels and undermine growth.

“It comes with some risks,” the director of the IMF’s African Department, Antoinette Sayeh, told Reuters. “Whereas what it costs the countries to issue these bonds can often look lower than what they would pay on domestic borrowing. The real cost in the final analysis will also depend on the evolution of exchange rates in the course of the life of the bond issuance.”

In 2007, Ghana became the first African beneficiary of debt relief to tap international capital markets, issuing a $750 million 10-year Eurobond. Since then, previously debt-burdened countries such as Senegal, Nigeria, Zambia and Rwanda have all joined in.

“In the last two years we’ve seen new issuers – Kenya issuing the largest amount of sovereign bond this year and Cote d’Ivoire (Ivory Coast), as well also having issued this year and then Rwanda last year,” said Sayeh.

“In 2014 alone we’ve seen some $7 billion already in sovereign bond issues, which is a record high for the region,” she added.

Tanzania is in the process of securing credit rating and plans to issue a debut Eurobond worth up to $1 billion in fiscal year 2014/15. Ethiopia aims to make its first foray into the international bond markets by January, while Rwanda is planning another sovereign bond.

January 28, 2015
FirstBank, firm partner on cardiovascular treatment

First Bank of Nigeria Limited has partnered Tristate Cardiovascular Institute to provide financial assistance to cardiac patients of the institute. The beneficiaries, the lender said, are unable to afford the cost of Cardio Vascular heart surgery they need to stay alive.

The Tristate Cardiovascular Institute consists of a team of world class cardiologists, cardiothoracic surgeons and other professional staff who have a mission to bring cutting edge cardiovascular disease diagnosis and treatment to Nigeria. Staff of the institute have been trained in the best cardiovascular centers in the world and have extensive experience in the diagnosis and treatment of cardiac conditions.

In a statement by the Head, Marketing & Corporate Communications, FirstBank, Mrs. Folake Ani-Mumuney, the lender explained that it’s partnership with the institute is implemented on the platform of FirstBank’s “Hope Rising” initiatives aimed at providing health and welfare support for indigent persons and persons living with disabilities. According to her, the lender would continue to support its communities and impact the lives of the society at large.

In a letter to the Bank, the Consultant Cardiothoracic Surgeon at the Tristate Cardiovascular Institute, Dr. Michael Sanusi, said the bank is the first institution to donate to the newly formed Tri State Heart Foundation.

He praised the bank for its recent support towards the surgery of two children with holes in the heart.

January 27, 2015