The Nation Newspaper

Category: Money

  • May & Baker plans to raise new equity funds

    May & Baker plans to raise new equity funds

    May & Baker Nigeria Plc is considering all options to raise new equity funds and recapitalize its balance sheet as the healthcare company seeks to optimize the gains of its recent huge investments and defray short-term finances that have been encumbering its bottom-line.

    Management of May & Baker at the weekend outlined plan to enhance the performance of the company to shareholders and financial journalists during a facility tour of the company’s manufacturing complex in Ota, Ogun State.

    Managing director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the company needs new equity funds to support the long-term growth of its business and reduce the high cost of fund, which has been constraining its profit in recent years.

    According to him, while the fundamentals of the company have shown appreciable improvements as reflected by rising sales and improving cash flow, the company would need additional equity funds to further strengthen its operations and ensure returns from recent investments get to the shareholders.

    He said the company looks towards raising between N2 billion and N3 billion but the board of the company would decide on the appropriate means to raise the funds and the exact amount to be raised, subject to the approval of relevant regulatory authorities.

    “We believe that this company needs new equity capital because the cost of funding is quite high,” Okafor said.

    He outlined that the company has a bright future as it has been able to build strong institutions and brands that will ensure sustainable growth irrespective of changes in management and operating environment.

    He noted that with the expected certification of the company’s products and processes by the World Health Organization (WHO), the company is set to become the first in Nigeria to be certified by the global health organisation, with immense potential for greater global opportunities and increased earnings.

    He said the company has been receiving several enquiries from prospective clients who want to use its world-class pharmaceutical manufacturing centre for their drug manufacturing adding that the impending certification of the General Manufacturing Practice (GMP) at the centre would encourage more customers.

    He pointed out that the WHO certification would highlight the leading position of May & Baker in the healthcare industry having recorded several milestones including being the first pharmaceutical company in Nigeria, the first anti malaria manufacturing drug company in Nigeria, first company to manufacture anti retroviral drug in Nigeria, first Pharmaceutical company to diversify to other sectors and first to commence distribution of vaccines in Nigeria among others.

    “We want to build a company that is strong, stable and globally relevant by setting up strong institutions and strong brands. We have launched May & Baker on the path of sustainable and profitable diversification,” Okafor said.

    Shareholders commended the company for its foresight at establishing the multi-billion naira Ota manufacturing complex and promised to support the recapitalization of the company.

    National coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said shareholders would do everything possible to support the company.

    According to him, availability of amenable capital is a prerequisite to corporate growth and May & Baker is not an exception.

    “We must do everything possible to ensure the growth of this investment; it belongs to all of us. Without money, investment will not be able to grow. We need to support the management in recapitalizing the company. Shareholders should also be patronizing the products of all quoted companies because in that way, they will be able to grow and deliver better dividends and more jobs,” Nwosu said.

    Vice President, Nigeria Shareholders Solidarity Association (NSSA), Mr. Matthew Akinlade, said the company has intrinsic potential for discerning investors noting that he had increased his shareholdings in the company.

    “When the President commissioned the PharmaCentre, I was here and I discovered the opportunities in the company, this informed my decision to mandate my stockbroker to buy more shares of the company for me. I bought more of the shares because I saw the potentials in this company,” Akinlade said.

    National President, Constance Shareholders Association of Nigeria, Mallam Shehu Mikhail, said May & Baker is well-positioned to be the best in Africa given its huge investments in the PharmaCentre.

    According to him, the company needs to leverage on the opportunities provided by its leading position to increase its market share, visibility of its products as well as establish outlets in nooks and crannies of the country.

  • Bank’s forum promotes SMEs’ roles in oil & gas sector

    Bank’s forum promotes SMEs’ roles in oil & gas sector

    Small and medium scale enterprises (SMES) wishing to play in the nation’s oil and gas sector have been advised to fully understand the intricate operations of the industry locally and globally before venturing into it.

    Audrey Joe-Ezigbo, author and co-founder, Falcon Petroleum Limited, who gave the advice on Fidelity SME Forum, a weekly programme by Fidelity Bank Plc, said though this may sound basic but it is the truth.

    Speaking on opportunities in the oil and gas sector and what it takes to build a successful partnership with a spouse, she said the oil and gas industry is such a robust industry that most people just miss it, pointing out that in the gas business for instance, there is opportunity for producing, distributing or retailing either natural gas.

    According to her, “there is opportunity in logistics and so many other aspects. The industry is not waiting for you; rather you are the one that is trying to carve a niche, so you owe it to yourself to do the research even beyond that specific field to understand the global industry. “There are lots of opportunities because it’s a very robust industry. There’s so much going on now with the gas revolution, gas to power development etc. It’s just incredible.”

    Explaining how she was able to build the skill to establish success in the oil and gas sector, she said: “In terms of my background, I didn’t have any in oil and gas or petroleum engineering.”

  • Sterling Bank partners Chaz B on emotional intelligence

    Sterling Bank partners Chaz B on emotional intelligence

    Sterling Bank Plc in its drive to enrich the lives of its customers and offer real value to the country as a whole has taken yet another bold step by supporting the award winning radio host Chaz B’s Emotional Intelligence event for couples.

    The event according to the On Air Personality and motivational speaker has been carefully and specially crafted to cater for the needs of married and engaged couples.

    In a statement, Sterling Bank’s Group Head, Strategy & Communications Mr. Shina Atilola said that the Bank was supporting the initiative because of its laudable objective which was to provide couples with the requisite skills to improve their relationships and deal with salient issues prevalent in marriages, which lead to breakdown in communication and other serious issues between couples.

    He expressed his concern that a lot of couples entered into marriage without the necessary skills required for success. This, he explained, had led to the sharp increase in the number of divorce cases in the country.

    “A lot of couples do not go through the rigors of understanding each other before they enter into marriage. As a result, they go into marriage unprepared. Marriage is about sharing lives, enduring partnerships and sharing love. Marriages are under pressure because there is not enough focus on these core relationship enablers”

  • CIBN issues code of conduct to check infractions

    CIBN issues code of conduct to check infractions

    The Chartered Institute of Bankers of Nigeria (CIBN) has issued new code of conduct for banks to check the rising cases of infractions in the banking industry.

    The institutes also said it resolved 1350 petitions/cases of infractions within the last 13 years.

    It said the new code of conduct represents the harmonized version of three codes, namely, the code of ethics and professionalism in the banking and finance industry, code of banking practice and the professional code of conduct.

    Presenting the new code of conduct to the media in Lagos, the President/Chairman of Council, CIBN, Dr. Segun Aina said the new code emanated as part of efforts and mandate of the institute to further maintain and ensure compliance of banking institutions to the ethical standards and professionalism as well as guarantee the safety and soundness of the nation’s banking industry.

    According to him, the code is expected to enhance the highest level of adherence to good banking practices and a strong commitment to high ethical standards in the banker-customer relationship.

    He note that the provisions of the code is binding on the industry as all operators and regulators made inputs to its development while approval was obtained from the bankers’ committee.

    “The institute also requires its members, as a matter of necessity, to recognize the required responsibilities in the conduct of their businesses and to strictly adhere to the code.

    “The provisions in the code governs the behaviours of both individual and corporate bodies in the banking industry, It also applies to all strata/cadre of employees in the industry whether full time, part time, temporary, contract of in-sourced.

  • ‘Aggregate foreign inflow in Q4 hits $4.94b’

    ‘Aggregate foreign inflow in Q4 hits $4.94b’

    The Central Bank of Nigeria (CBN) says the nation’s aggregate foreign capital inflow stood  at $4.94 billion as at the fourth quarter of 2013.

    The bank said this in its External Sector Development report for the fourth quarter of 2013 which was posted on its Website.

    It said the figure represented an increase of 24.3 per cent from the $3.97 billion recorded in the third quarter of 2013.

    CBN also said the development was attributable to an increase in direct and portfolio investment inflows.

    According to the report, direct investment increased from $0.86 billion in the third quarter of 2013 to $1.00 billion  in the fourth quarter of 2013.

    It added that the increase in the figure represented a growth of 16.1 per cent.

    The bank said portfolio investment inflows grew from $3.11 billion  in the third quarter of 2013 to $3.94 billion  in the forth quarter of 2013.

    The apex bank said that portfolio investment inflow remained dominant and accounted for 79.7 per cent of total foreign inflows.

    It also said that direct investment inflows accounted for 20.3 per cent of the total foreign inflow.

    The bank explained that the higher inflow of foreign capital in the fourth quarter of 2013 was a welcome development which should be sustained through macro-economic stability.

    It said that the positive growth had resulted into an enhanced investment environment which includes good corporate governance.

  • FirstBank partners WAEC on e-registration

    First Bank of Nigeria Limited has been designated as sales points for the e-registration forms of candidates for this year’s November/December West African Senior School Certificate Examination (WASSCE).

    With over 750 branches across the federation and 120 years of business operation, the lender said that it has been a consistent partner for educational and economic development.

    The e-registration materials which have been available since Monday May 5 until Friday July 4 and can be obtained over the counter at all FirstBank branches across the country, at a cost of N11,440. Also, a late registration window period between Monday July 7 through Friday, August 1, this year will be available but at an additional charge of N21, 400.00 as stipulated by WAEC. Candidates are expected to collect an e-Receipt containing the registration PIN, the registration kit and the result checker scratch card after the payment of the fees.

    According to FirstBank’s spokesperson, Mrs. Folake Ani-Mumuney, FirstBank has been a major player in youth empowerment and development and welcomes this partnership as yet another platform for promoting excellence in the development of education in our country. Ani-Mumuney said the Bank had since been providing adequate support across its social media platforms to ensure that prospective candidates for the WASSC (Private Candidates’) Examination receive up-to-date information on the sales of the e-registration materials.

    She said: ”Our network of over 750 branches nationwide offers prospective candidates the opportunity to acquire the e-registration materials at locations close to them.“

  • AfDB okays new credit policy for low income countries

    AfDB okays new credit policy for low income countries

    Low income African countries are now eligible to secure loans from the African Development Bank Group’s (AfDB) sovereign loan window, the lender has said.

    In a statement yesterday, it said the decision followed a review of the institution’s credit policy which has been approved by its Board of Directors.

    It said the policy underscores the bank group’s recognition of the strong economic progress of African countries during the last decade, and its mandate to help sustain inclusive growth in its Regional Member Countries (RMCs) or African countries, including Nigeria, Ghana and Togo, among others.

    “The proposal reconciles the need to address the demand for resources to speed up the structural transformation of low-income African countries in a sustainable manner, RMCs’ debt sustainability, as well as the bank’s financial stability,” the statement said.

    About 37 countries or nearly 70 per cent of the RMCs fall under the low-income countries category that is eligible only to concessionary resources from the African Development Fund (ADF).

    However, the report argues that diminishing scarce concessionary resources would be inadequate to finance and sustain the current high rates of growth and transform the structure of Africa’s economies to generate much-needed employment. This view is bolstered by the fact that many African countries borrow non-concessionary funds in the capital markets at rates that are  higher than what they could obtain from the bank.

    Access to the AfDB’s sovereign resources by low-income countries would be available to low or moderate risk of debt distress countries and subject to International Monetary Fund’s Debt Sustainability Assessment (DSA), sustainable macroeconomic position as well as stringent oversight by the bank’s Credit Risk Committee, among other safeguards.

  • Jaiz Bank gets ED

    Jaiz Bank Plc has appointed Mahe Abubakar as Executive Director, Business Development.

    Until his appointment, Abubakar was General Manager/Group Zonal Head of Zenith Bank Plc Northwest.

    Abubakar has a Masters in Business Administration from the Ahmadu Bello University, Zaria and is a Dealing Clerk of the Nigerian Stock Exchange (NSE).

    In a statement, the bank said Abubakar has attended several trainings in and outside Nigeria, including High Potential Leader: Accelerating Your Performance at Wharton School, Pennsylvania in the US, High Performance People Skills, London Business School and Senior Management Programme at the Lagos Business School.

    His appointment has been confirmed by the Central Bank of Nigeria(CBN).

  • FCMB launches account opening on Facebook

    New customers of First City Monument Bank (FCMB)  can now open savings accounts  in their homes, offices, or on  via their computers or mobile devices.

    The launch of the platform coincides with the introduction of a new product, called, ‘the e-savings account’. The new account is an online based savings account which enables prospective customers to complete their account opening process with FCMB without the need to fill out any physical form(s) or visit a branch.

    In a statement, the bank explained that this new innovation is designed with the aim of utilising technology to reduce the time it takes to open an account, whilst also improving customer service and customer experience.

    It said the platform also extends the bank’s e-business offering by enabling new customers to open accounts, adding that existing customers already have access to various electronic banking services, including online banking, mobile banking and a range of international cards.

    Although the platform offers just one savings product, the Bank has informed that other types of accounts will soon be made available to give consumers the opportunity to select the right type of account for their banking needs.

    It said all consumers need to do is to fill out a short form, which is both on the bank’s website and Facebook page, and upload a recent digital passport photograph. If the information submitted passes the bank’s due process checks, the customer is then provided with an account number within minutes of completion and submission of the form.

  • CBN insists on OMO for liquidity management

    CBN insists on OMO for liquidity management

    The Central Bank of Nigeria (CBN)  has said it will continue to rely on Open Market Operations (OMO) auctions as the major tool to control liquidity in the system.

    The OMO entails the buying and selling of government’s securities in the open market to expand or contract the amount of money in  circulation.

    In a circular, the CBN said the OMO will be discretionary and will involve the sale or purchase of Treasury Bills and CBN Bills through the market that would include auctions and two-way quote trading, adding that the securities will be of specified tenor and volume, linked to assessed liquidity conditions in the banking system.

    Participants at OMO auctions would be the authorised Money Market Dealers (MMDs) comprising commercial and merchant banks, non-interest financial institutions and discount houses.

    Also, based on market liquidity conditions and the subsisting Monetary Policy Rate (MPR), OMO will be complemented by repurchase agreements (repo/reverse repo), at the applicable rates.

    The CBN said commercial and merchant banks will continue to maintain a minimum Liquidity Ratio (LR) of between 20 and 30 per cent. Discount houses will continue to invest at least 60 per cent of their total borrowings in government securities while the ratio of individual bank loans to deposits was retained at 80 per cent.

    It said the discount window at the CBN would remain available to give authorised dealers access to effective management of their temporary liquidity shortages or surpluses. Thus, standing facilities would continue to be open to them on overnight basis in line with subsisting guidelines. The facilities would be in the form of Standing Lending Facility (SLF) to address temporary shortfalls in liquidity, and Standing Deposit Facility (SDF) to aid effective management of short-term liquidity surpluses.

    The CBN said it will determine the applicable interest rates on the facilities and allow rediscounting of eligible securities at the discount window at its rates.

    The CBN said it would continue to adopt the risk-based supervision (RBS) approach in the supervision of institutions under its regulatory purview.

    “The objective of the RBS approach is to provide an effective process to assess the safety and soundness of banks and other financial institutions.This is achieved by evaluating their risk profile, financial condition, risk management practices and compliance with applicable laws and regulations,” it explained.

    It enjoined banks to pursue profitability in their business models through efficient operations, adding that they should charge competitive rather than excessive rates of interest in the course of their transactions. The lenders are also expected to disclose their prime and maximum lending rates as fixed spreads over the MPR.