The Nation Newspaper

Category: Money

  • ‘Agric attracts $8b investment’

    ‘Agric attracts $8b investment’

    The Nigerian agricul tural sector has attracted $8 billion foreign direct investment (FDI) in the last one year, Minister of Agriculture and Rural Development, Adesina Akinwunmi has said.

    Speaking yesterday at a workshop on Financing Nigeria’s Agricultural Revolution organised by the Securities and Exchange Commission (SEC), he said that agricultural lending is promising and has moved from one per cent to over three per cent in the last one year.

    He said there is need to unlock the potentials in the agricultural sector adding that banks should see agricultural financing as a serious business that can impact positively on their balance sheets.

    He said that public equity funds also need to increase their stake in agricultural financing.

    He said that Nigeria Incentive Based Risk Sharing for Agricultural Lending (NIRSAL) which allows bank to share the risk associated with lending to the sector as provided by the Central Bank of Nigeria (CBN).

    The apex bank is equally considering an intensive performance rating for all commercial banks to determine their effectiveness of lending to agriculture. To achieve this, the apex bank has set aside, N75 billion allocated for the full implementation of the NIRSAL project.

    The CBN has also recently set new rules for lending to the agricultural sector of the economy. The apex bank took the decision after reports from banks and discount houses indicated that lending to the subsector remains a high-risk, which should be followed with caution.

    In a circular, the CBN said agricultural lending accounts for approximately 1.4 per cent of formal lending, and has been on the decline since 2006 because of the perceived risk of the sector. This situation, it said, was because banks have limited understanding of and lack of confidence in the sector.

    To reduce the inherent risk in the level, the apex bank advised that going forward, lenders should conduct environment and social risk analysis and assessment of agricultural clients and activities before extending loans to them. The lenders, by this rule, are also expected to ensure that identified risks are adequately monitored and managed while adhering to local environmental and social laws.

    The CBN also wants lenders to be consistent with NIRSAL agenda, ensuring that, they finance the manufacture and distribution of improved and high seeds; lending to indigenous seed companies and importers of seed varieties and ensuring that farmers are able to procure seeds directly from seed manufacturers by availing them adequate credit.

     

  • Equities gain N324b

    Equities gain N324b

    •Investors scramble for year-end positions

    Market values of quoted companies onthe Nigerian Stock Exchange (NSE) rose by N324 billion last week as increased market orders for equities kept the stock market as a seller’s market all through the week.

    With 30.3 per cent and 68.6 per cent increase in volume and value of activities, average gain by equities closed the week at 3.80 per cent, pushing the year-to-date return at the NSE to 33.55 per cent.

    Totalmarket capitalisation of equities closed the week at N8.846 trillion, indicating an increase o N324 billion on the week’s opening market value of N8.522 trillion.

    The All Share Index (ASI)- the common value-based index that tracks price changes of all equities on the NSE, confirmed that the N324 billion increase was due to capital gains rather than supplementary listings or other adjustments. ASI increased similarly by 3.80 per cent to 27,685.54 points as against its opening index of 26,671.72 points.

    Pricing trend analysis showed widespread gains across sectors and stocks’ groups. While some investors appeared to be taking positions in low-priced stocks, several investors were comfortable with the blue-chip stocks.

    The NSE 30 Index, which tracks the 30 most capitalised stocks, performed above average with a weekly gain of 4.58 per cent. The NSE Consumer Goods Index rode on the back of Nestle Nigeria to post a weekly gain of 8.83 per cent. The NSE Banking Index indicated an increase of 2.67 per cent. The NSE Oil and Gas Index recovered 3.61 per cent gain while the NSE Lotus Islamic Index, which tracks a portfolio of Shari’ah-compliant stocks, improved by a 2.52 per cent. However, the NSE Insurance index dropped by 1.06 per cent, worsening the negative return in the sector.

    With 44 advancers to 25 decliners, the market was overly bullish during the week. But the overall market position was boosted by gains by large-cap stocks in the breweries, food and beverages, building materials and banking sectors.

    Nestle Nigeria was the most bullish stock with a net weekly gain of N49.95 to close at N710. Guinness Nigeria followed with a gain of N2.90 to close at N265. Nigerian Breweries rose by N21.45 to close at N165. Seven-Up Bottling Company rallied N4 to close at N44. Lafarge Cement Wapco Nigeria added N2 to close at N60. UAC of Nigeria gathered N1.97 to close at N43.98. Oando chalked up N1.93 to close at N14.03 while Guaranty Trust Bank and Okomu Oil Palm gained N1.26 and N1 to close at N21.50 and N35.

    Investors staked N14.64 billion on 1.93 billion shares in 22,650 deals last week, a marked increase over the turnover of 1.14 billion shares valued at N11.24 billion recorded in 18,947 deals two weeks ago.

    The financial services sector remained atop activity chart with a turnover of 1.57 billion shares valued at N10.55 billion in 14,207 deals. The conglomerates sector followed with 131.812 million shares valued at N180.81 million in 765 deals.

    On the downside, PZ Cussons Nigeria recorded the biggest loss of N1.65 to close at N27.05. MRS Oil Nigeria followed with a loss of N1.25 to close at N23.76. DN Meyer lost 75 kobo to close at N2.05 while Flour Mills of Nigeria and GlaxoSmithKline Consumer Nigeria dropped by 50 kobo each to close at N65 and N45.

     

     

  • FirstBank assures customers of quality service

    FirstBank of Nigeria Limited (FirstBank) has assured its customers of enhanced services across its networks nationwide. In a customers’ forum held in Lagos, the bank had highlighted its new products and services, including e-business services, alternative channels, and the various transformational initiatives of the Bank over the past one year.

    Speaking at the forum, FirstBank’s Group Managing Director/Chief Executive Officer, Bisi Onasanya said as a pan Nigerian financial institution, the lender recognizes the need for periodic interaction with its customers to foster efficient service delivery. “We believe every business is as strong as the value it places on its customers. We are very passionate about our customers and see this forum as a platform to receive feedback from our customers and further position the Bank to delight our customers and partner with them on sundry financial advisory services and business growth initiatives,” he said.

    Onasanya said the bank had since deployed an operating model that realigned its market facing business units from a geographic focus to a customer segmented approach to deepen its understanding of each customer segment.

     

     

  • ICAN seeks nationwide implementation of cashless policy

    With an estimate of N3.5 trillion circulating yearly within the unbanked and under-banked (constituting over 10 million traders), the Institute of Chartered Accountants of Nigeria(ICAN) has urged the Central Bank of Nigeria to extend the cashless policy outside Lagos to bring more cash into the system.

    In addition, the institute said spreading the policy outside of Lagos will help the government in its anticorruption and anti-money laundering campaign.

    Addressing the institute’s 17th Association of Accounting Technicians (AAT) annual conference, ICAN President, Mr Adedoyin Owolabi said when cash remains outside the banking system ,the ability of banks to create credit and supply productive capital to the economy will diminish.

    His words: “Bringing cash into the banking system produces an equal increase in bank reserves, enabling banks to facilitate more consumer and commercial loans, thereby stimulating consumption and business growth.”He stressed that the institute supports the cashless policy not only because it can promote transparency of transactions through the provisions of audit trails but also because it can increase the size of the informal economy and access by government to loanable funds.

    On the AAT scheme, Owolabi said it has generated interest among school leavers ,including undergraduates of higher institutes in other disciplines. This, he attributed, to the scheme’s certificate acceptability by employers of labour and rising demand for the programme across the West African sub region.

     

  • Stanbic IBTC marks first year of mobile money service

    Stanbic IBTC marks first year of mobile money service

    Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings Plc, has commemorated the first anniversary of it’s *909# mobile money service.

    At the commemoration in Lagos on Tuesday December 12, the bank reiterated its commitment to continuously deliver innovative products and solutions, part of which includes enhancing the robustness of its mobile banking and mobile payments systems.

    The bank was one of the first organizations licensed by the Central Bank of Nigeria in October last year to operate mobile money services in Nigeria in accordance with the Mobile Payments Regulatory Framework.

    Speaking at the event attended by stakeholders from the banking, retail and telecoms sectors, the Chief Executive Officer of Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, recalled that the bank had since 2009 shown commitment to technology-driven branch less banking and enthusiastically embraced the Central Bank of Nigeria’s drive towards an increasingly cashless economy.

    She said the organization’s decision to launch the *909# Stanbic IBTC MobileMoney solution last year was underscored by the bank’s strategic focus of strengthening its universal banking franchise by integrating Nigeria’s huge informal economy.

    According to her, mobile money is a game changer which apart from enabling customers to conduct basic financial transactions such as mobile money account opening, buying airtime, deposit and receipt of cash, as well as payment of utility bills through their mobile phones, also offers enormous benefits to the Nigerian economy by channelling the huge funds in the informal sector through the banking system to engender economic development.

    Obinnia Abajue, Executive Director of Personal and Business Banking, Stanbic IBTC Bank, said it was in recognition of the need for market-driven partnerships and alliances with the different stakeholders in the mobile money value chain, that the bank went into partnerships with all the four major telecom operators in Nigeria, enabling mobile payment services to take root, proliferate, and scale up across the country.

    According to Abajue, Stanbic IBTC has recorded significant milestones with mobile money. To date, *909# Stanbic IBTC mobile money has over 600,000 registered customers, over 790 agents nationwide and there have been over 7.7million agent airtime transactions and a total monthly transaction value of N1.3 billion. A mobile wallet can be funded through; a mobile money agent, at any Stanbic IBTC Bank branch, any ATM, person to person transfer, and online through the web, internet banking and through Quickteller, Abajue said. Stanbic IBTC recently won the Nigerian Financial Technology Award for the best use of IT in mobile money services.

     

  • Shareholders approve UBA holdco

    Shareholders of United Bank for Africa (UBA) Plc yesterday gave final approval to the restructuring of the pan-Africa financial services group into a holding company (holdco) structure, in a one-for-four deal that saw shareholders having equities in four companies from the unbundling of the far-strewn assets.

    Immediately after the overwhelming approval of the holdco, share price of UBA trended upward at the Nigerian Stock Exchange (NSE), rising by 0.63 per cent to close at N4.86 per share.

    At the court-ordered Extra-Ordinary General Meeting in Lagos yesterday, shareholders commended the restructuring process adopted by the bank, noting that it has significantly unlocked values for investors.

    Under the new structure, all non-commercial banking businesses with the exception of Afriland Properties Plc and African Prudential Registrars Plc shall be consolidated in UBA Capital and spun off to the existing shareholders. In additIon to UBA Plc, the three emergent companies will be listed thereafter on the NSE, bringing to four the quoted companies that will replace the current listing on the NSE.

    Each eligible shareholder will receive one ordinary share in African Prudential Registrars Plc; one ordinary share in Afriland Properties and four ordinary shares in UBA Capital Plc for every 33 shares held as at the terminal date.

    Speaking at the meeting, group managing director, United Bank for Africa (UBA), Mr Phillips Oduoza said UBA Capital Plc and African Prudential Registrars Plc will be listed immediately after the completion of the scheme arrangements, while Afriland Properties will be listed at a future date.

    He noted that the share exchange was derived from the paid up capital of the scheme entities.

     Executive Director, UBA, Mr Emmanuel  Nnorom, said the process of listing the shares of Afriland Properties on the NSE would be completed by the middle of January 2013.

    Shareholders approved that the proposed scheme of arrangement  for the internal restructuring and reorganization of the capital of the bank and its members dated November 15, 2012 has been submitted and approved by the chairman; that the board of directors of the bank has been authorized to effect the following  transfers to UBA Capital: and  transfer of 4,500,000 ordinary shares of N1.00 each in UBA Insurance Brokers Limited  to UBA Capital; transfer of 499,999,998 ordinary shares of N1.00 each in UBA Asset Management Limited to UBA Capital Plc.

    They also mandated that directors of the bank be and are hereby authorized to consent, on behalf of parties authorized to conclude pending transactions including recapitalization of and/or   reorganization of capital from any of the subsidiaries and affiliates.

    Meanwhile, the bullish rally at the NSE continued yesterday with the benchmark index appreciating by 0.54 per cent to reach a new high. Average year-to-date return at the stock market rode on the back of gains by several large and mid-cap stocks to peak at 33.44 per cent.

    The All Share Index (ASI), the main index at NSE, rallied to close at 27,663.51 points as against its opening index of 27,514.18 points.

    Aggregate market value of all quoted equities added N48 billion to close at N8.839 trillion compared with its opening value of N8.791 trillion.

    While there were 24 losers against 21 gainers, capital gains by highly capitalized companies such as Guinness Nigeria, Ecobank Transnational Incorporated, Nestle Nigeria, Nigerian Breweries and Guaranty Trust Bank skewed the overall market position to the positive.

    Total turnover stood at 464.23 million shares valued at N3.73 billion in 4,877 deals. The three most active stocks were Zenith Bank, with 61.74 million shares;  Universal Insurance, with 46.59 million shares and Niger Insurance, which saw exchange of 39.45 million shares.

  • Banks targeting 10% loans to agric, says bank CEO

    Banks are currently inching to grow their agriculture loans from 3.5 per cent to 10 per cent, the Chief Executive Officer, Stanbic IBTC Holdings Plc, Mrs Sola David-Borha has said.

    Speaking yesterday at the Fourth Christopher Kolade Symposium hosted by the Nigerian Leadership Initiative (NLI) in Lagos, she said agriculture remains a game changer for the country as the sector gets priority and attention from government and individuals.

    According to her, Nigerian economy is growing but not as fast as expected because of inadequate infrastructure.

    She said that subsidy for agriculture has not benefitted farmers as many farmers pay the market price for fertilizer, a practice which only benefits those involved in the project.

    David-Borha said Nigeria can achieve 30 per cent efficiency by getting the power sector right. According to her, there is need to increase funding for infrastructure adding that the setting up of Sovereign Wealth Fund (SWF) would also support government’s infrastructure drive. “Infrastructure is enabler for growth and the sooner we learn about that the better,” she said.

    She explained that corporate governance in Nigerian banking system has improved, adding that there is no country that has a perfect system.

    According to her, the Central Bank of Nigeria (CBN) has taken bold steps in that direction, adding that although more still needs to be done to get better results.

    “Corporate governance practice has improved in the country. Although more work still needs to be done, but there has been great improvement,” she said.

  • Sterling Bank rewards more customers

    Sterling Bank yesterday gave out cash prize of N2 million to four of its savings customers in the fifth monthly draw of the ongoing Savers’ Promo held in Lagos. The winners, who won N500, 000 each, were Sobukunola Olusola (Ilupeju Branch), Nnorom Victor Ugochukwu (Garki Branch), Okoro Chukwunonyerem (Ilorin Branch) and Adinna Geoffrey (Olu Obasanjo Street Branch).

    Ten other customers also won home theatres and refrigerators as consolation prizes. Those that won home theatres were Aloji Onyemaechi, Andrew Abba, Babalola Eno and Obot Sunday. Also, Olufemi Adenaike, James Buremo, Sunny Duke Okosun, among others won refrigerators.

    Some of the winners expressed their happiness with the bank for offering them opportunity to grow their businesses and improve on their income. Ugochukwu who won N500, 000 expressed his excitement adding that the bank has demonstrated its commitment to integrity by fulfilling its promises.

    Likewise, Okosun who won a refrigerator said he has come a long way with the bank. “The one customer bank pay off has positioned the bank as a listening one which is part of what I have benefitted from today,” he said.

    All the winners emerged after electronic draws witnessed by Consumer Protection Council (CPC), National Lottery Regulatory Commission (NLRC), the media and members of staff of the bank.

    All the 14 winners emerged from 21,187 qualified entries pooled electronically during the draws. The CPC and NLRC said they are happy with the progress made so far in the draws. They explained that all the previous winners have been contacted during which they confirmed to have received their prizes. Director at NLRC, Obi Iregbu said the bank’s effort at rewarding its customers is commendable and encouraged customers to participate in the promo and win more prizes.

    The bank’s Group Head, Liability Products and Bancassurance, John Akingbade, said the excitement that came with the promo is still on after five draws in which the bank gave out N10 million both in cash and gifts and will be giving out SUV Car to the star prize winner at the end of the promo in January next year.

    Akingbade who was represented by John Okon, also of the Liability Products and Bancassurance unit of the bank, said winners have emerged from different regions. He said that there is need for bank customers to cultivate savings culture as such would enable them achieve whatever they wanted. “There is need to save for the rainy day and the bank has several products that would enable them meet their immediate and long-term needs,” he said.

    According to him, the promo has assisted the bank to grow its deposits and has equally enabled the bank to reward its customers. He said the bank would consider doing similar promos in 2013 because of the positive feedback from customers, adding that the momentum cannot be dropped at this time.

  • Nexim, miners association renew pact

    The Managing Director/CEO of Nigerian Export Import Bank (NEXIM), Mr. Roberts U. Orya met with the Patrons of the Miners’ Association of Nigeria to discuss areas of collaboration on a strategic framework both parties are developing.

    The bank said in a statement that the pact was meant to structure and attract sustainable investments to the solid minerals sector.

    The bank said meeting with the group was a gesture by its patrons to discuss issues of mutual cooperation with NEXIM. It was also a follow-up to the interactive business dinner organised by the association in conjunction with the Federal Ministry of Mines & Steel Development.

    Presenting the bank’s initiative and market focus to the association, Mr. Orya said that Solid Minerals is a critical sector for the bank under its MASS Agenda.

    He said the bank has committed more than N2.5 billion or nine per cent of its total portfolio since August 2009 to the sector.

    “This does not scratch the surface of the sector’s requirement if Nigeria is to take advantage and benefit from the huge mineral deposits the country is endowed with,” he said.

    He explained that solid minerals mining is a capital intensive area and requires strong government intervention to unlock its huge revenue and job creation benefits for the country.

    He said that using statistics from theMining Cadastre Office and the Nigerian Geological Survey Agency factsheets, Nigeria is endowed with more than 33 commercially viable solid minerals.

  • EU strengthens trade, investment ties with Nigeria

    Policy makers in European countries have said that in spite of the slow growth in the advanced economies, the Nigerian economy, which has continued to grow at about seven per cent in the last 10 years, present huge opportunities for savvy investors to leverage on.

    The leaders of some of the strongest EU countries agreed after meetings with the Nigerian Minister of Trade and Investment, Mr. Olusegun Aganga, that trade and investment ties between their countries and Nigeria must be strengthened at this critical phase of the world economic history for the benefit of Nigeria and their countries alike.

    The President of the Republic of Finland, Mr. Sauli Niinisto, who received Aganga in Helsinki, Finland, said there was a new world emerging in favour of African economies, noting that Nigeria’s indices were particularly impressive.