Category: Money

Quickteller has selected five winners for an all-expenses-paid trip to Dubai, from its first raffle draw for the Interswitch One Africa Music Fest slated to hold on December 10.

The promo, which began last month, would run through this month and October, and will avail Quickteller users the opportunity to participate in one of the biggest Afrobeats music festivals.

To take advantage of the promo, Quickteller users are encouraged to make at least three transactions during the promo period for a chance to be among the lucky 20 people who will attend the Dubai edition of the Music Fest.

The first set of winners were selected through a draw that was  monitored by officials of the Federal Competition and Consumer Protection Commission (FCCPC) and the National Lottery Regulatory Commission (NLRC) at Interswitch’s head office in Lagos.

The Executive Vice President & Group Chief Marketing and Communications Officer, Interswitch Group, Cherry Eromosele, noted that the draw was held by Quickteller to give back to its loyal customers, adding that this would afford the users the opportunity to interact with their favourite music artistes beyond radio plays.

She said: “Apart from the provision of seamless and convenient payment transactions, we also seek avenues that allow loyal Quickteller users explore their passion and enhance their lifestyle, and one of such channels is the Interswitch One Africa Music Fest.

“These draws that began in August and will end in October will provide existing and potential Quickteller users the opportunity to meet with their favourite top African music artistes in the emirate city of Dubai in December.”

She added that the music fest, has maintained Interswitch as headline sponsor for three years, and has served as a platform for raw African music talents to showcase their artistry to a global audience while also thrilling their local fans.

Scheduled to thrill fans at the event are local and international Afrobeats artistes,  as well as the top 6 Quickteller Barz and Notes talents.

The World Bank has said growth in remittances to Nigeria and other merging markets is supported by strong economic activities in Europe and the United States.

It said last year remittance inflows to Nigeria and other Sub-Saharan Africa countries soared 14.1 per cent to $49 billion, following an 8.1 per cent decline in the prior year.

The World Bank’s latest Migration and Development Brief  said recorded inflows showed that Nigeria was the largest recipient country in the region.

The country gained 11.2 per cent, in part due to policies intended to channel inflows through the banking system.

Growth in remittances was supported by strong economic activities in Europe and the United States.

The report projected that in the year, remittance inflows were projected to grow by 7.1 per cent driven by continued shift to the use of official channels in Nigeria and higher food prices – migrants will likely send more money to home countries that are now suffering extraordinary increases in prices of staples.

The cost of sending $200 to the region averaged 7.8 per cent in the fourth quarter of last year, a small decline from 8.2 per cent a year ago.

The bank said recorded remittance flows to low- and middle-income countries (LMICs) are expected to increase by 4.2 per cent this year to reach $630 billion.This follows an almost record recovery of 8.6 per cent last year.

Remittances to Ukraine, which is the largest recipient in Europe and Central Asia, are expected to rise by over 20 per cent in the year. However, remittance flows to many Central Asian countries, for which the main source is Russia will likely fall dramatically. These declines, combined with rising food, fertiliser, and oil prices, are likely to increase risks to food security and exacerbate poverty in many of these countries.

“The Russian invasion of Ukraine has triggered large-scale humanitarian, migration and refugee crises and risks for a global economy that is still dealing with the impact of the COVID pandemic,” said Michal Rutkowski, the Global Director, Social Protection and Jobs Global Practice, World Bank.

“Boosting social protection programmes to protect the most vulnerable, including Ukrainians and families in Central Asia, as well as those affected by the war’s economic impact, is a key priority to protect people from the threats of food insecurity and rising poverty.”

More savers are going for mutual funds where returns have remained higher in recent years, the Coronation Asset Management report has said.

“We are convinced that Nigerian savers are making the long-term transition from building savings with banks to a culture of saving with mutual funds.

“At just 11 per cent of the size of the pension fund industry, we believe that the mutual fund industry needs to support its momentum with confidence-building measures, first among them the adoption of market-to-market accounting and Global Investment Performance Standards (GIPS),”  Aigbovbioise Aig-Imoukhuede, Managing Director, Coronation Asset Management, said.

One year after publishing its report entitled: ‘Comparing Mutual Funds – Apples & Oranges’, Coronation Asset Management returns to comparing the performance of Nigeria’s mutual funds with its latest report entitled: ‘Comparing Mutual Funds II – Apples & Oranges, and a Hand Grenade’.

The report is an investigation into the rapidly-growing N1.52 trillion mutual fund industry in Nigeria. This year, it takes a dive into the differences between the amortised accounting method, which most funds in Nigeria use, and the international mark-to-market accounting method, as applied to Fixed Income funds.

“We find that the amortised accounting method has a fundamental flaw when it comes to dealing with interest rate fluctuations; so much so that we think it could lead to systemic risk in future. Hence the title of our report this year.

“The mark-to-market method of accounting for Fixed Income funds is not simply a matter of following Global Investment Performance Standards (GIPS). Mark-to-market is by far the safest method of accounting for Fixed Income securities in a mutual fund, guaranteeing that fund managers only show a Unit Price (UP) to investors that reflects what can be realised in the market,”  Guy Czartoryski, the Head, Research, Coronation Asset Management, said.

According to the report, this year, and after a 10.6 per cent decline in total assets under management (AUM) during last year, the industry is growing again, with total AUM up by 8.7 per cent in the first five months of the year to hit N1.52 trillion. The compound annual growth rate for the industry between 2015 and last year was 33 per cent, or 14 per cent per annum in inflation-adjusted terms.

Czartoryski added that adopting GIPS would enable a better comparison between the performance of funds rather than the “Apples & Oranges”.

“GIPS would open the door to credible fund comparison services such as Morningstar, Yodelar and the Financial Times fund comparison service. These advances would pave the way to significant industry expansion and international investor participation,” he said.

The FATE Institute of FATE Foundation has signed a Memorandum of Understanding (MOU) agreement with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) on the development of entrepreneurship and create an enabling business environment for Micro, Small and Medium Enterprises (MSMEs).

The FATE Institute, an arm of FATE Foundation, is creating platforms to enable idea exchange and problem-solving strategies around entrepreneurship in Nigeria and will work with SMEDAN for data gathering, research, thought-leadership, policy dialogue, and policy advocacy, etc for MSMEs.

Both organisations also signed a Memorandum of Agreement (MOA) to develop a research on MSME Competitiveness in Nigeria, providing an assessment of MSME Competitiveness across states in Nigeria while also sharing insights into key enablers of MSME Competitiveness in Nigeria.

Executive Director, FATE Foundation, Mrs. Adenike Adeyemi, lauded the  Director-General/CEO, SMEDAN,  Olawale Fasanya, for his passion for the MSME sector.

Adeyemi thanked Fasanya for his support for FATE Foundation’s work, noting that she was looking forward to working with SMEDAN to improve outcomes for MSMEs through the partnership.

“We are equally excited about this partnership to provide more empirical research on MSMEs in Nigeria and entrepreneurship at large and this is at the core of the institute. We look forward to a productive outcome,” Adeyemi said.

Fasanya emphasised the need for public-private collaboration with the private sector for synergy and for stronger impact within the entrepreneurship sector.

He said: “We are delighted to partner with FATE Foundation to develop a research report on MSME Competitiveness in Nigeria and I look forward to the outcomes of the research, which will further enhance plans to support Nigerian MSMEs to be as competitive as their counterparts abroad.”

Also, at the event were Head of Communication and Marketing, FATE Foundation,  Ms. Blessing Sunday; his Growth Support counterpart, Ms. Oluwaseun Oshoniyi; Principal Legal Officer, SMEDAN, Paul Ajudua, and   Head, the FATE Institute, Ms. Amaka Nwaokolo.

FATE Foundation was founded in 2000 by Mr. Fola Adeola, also founder and Pioneer Managing Director, of Guaranty Trust Bank, to promote businesses and entrepreneurial development.

Digital money, Ethereum’s network revenue fall by 33.4 per cent in the second quarter of the year is of great concern to crypto dealers.

The figure, which was $1.91 billion in the first quarter,  stands at $1.28 billion. According to a Bankless Times report, the network burnt $1.09 billion of those funds, effectively locking them out of circulation.

“This drop is due to a weak crypto market,” explained Jonathan Merry, BanklessTimes CEO. He added: “The prevailing bearish conditions have watered interest from crypto speculators. Consequently, transaction activity has gone down and with it the network’s revenue.”

The average daily active addresses also fell from 593,404 to 471,447, a 20.6 per cent decline. The decrease in trading could be linked to a drop in speculative interest among investors owing to the quarter’s negative backdrop.

Also, the network’s DeFi TVL fell 42 per cent — from $59.42 billion to $34.21 billion – during the same period. The key reason for this decrease is the decline in cryptocurrency prices in the quarter. Other reasons include liquidity outflows caused by reduced yields and a less risky attitude among Defi users.

As of second quarter 2020, investors had staked 12.98 million ETH on the Beacon Chain. This figure represents an increase of 116 per cent from 6.01 million ETH at the beginning of the quarter. Users had stacked about 11 per cent of ETH by the close of second quarter.

Furthermore, NFT marketplace volumes have exploded in the past year, growing 2439.2 per cent from $509.36 million to $12.93 billion.

Loan growth in the banking sector is limited by foreign exchange scarcity and Cash Reserve Requirement (CRR) deductions as stipulated by the Central Bank of Nigeria (CBN), Agusto & Co. report has said.

In its Nigerian Banking Industry Report, the rating agency said more banks are favourably disposed to accessing the differentiated cash reserve requirement (DCRR) window to reduce the value of sterile restricted funds with the CBN.

It said the yearly report provides a comprehensive review of the country’s banking industry and its near-term expectation.

Agusto & Co. notes the the resilience shown by the banking industry last year, as itss loan portfolio grew by 21 per cent despite the weak economy and regulatory constraints.

“Notwithstanding the prevailing global supply constraints, the Russian-Ukraine crisis and insecurity challenges that continue to hamper food and crude oil production in Nigeria, we anticipate a 16.5 per cent year-on-year loan growth in 2022 as more banks now have a better understanding of the macroeconomic headwinds,” the report said.

Traditional sectors such as oil and gas, manufacturing, commerce and agriculture sectors are expected to drive the loan growth given the backward integration initiatives of obligors, the intervention activities of the CBN and the import-dependence nature of the economy.

In the near term, agency said, it believed the industry’s asset quality would remain acceptable, with the impaired loan ratio hovering around six per cent as at last December 31.

“In our view, a proactive tightening of controls around loan origination and intensified loan monitoring will moderate the impact of the tough operating climate on the loan portfolio.

“Nigeria’s banking industry remains well-capitalised relative to the business risks undertaken and should remain so in the near term. In preparation for the full implementation of Basel III and based on the scheduled growth plans, we expect an increased appetite for perpetual bond issuances which qualify as additional tier 1 capital.

“We also believe that some banks will raise common equity tier 1 capital that will keep the Industry’s capital adequacy ratio above 17 per cent,” it said.

For the year, Agusto & Co projects a decline in the industry’s net interest spread as the prevailing low yields on government securities, which dominate the industry’s investment securities, will moderate the impact of the uptick in interest rates.

However, it anticipated an increase in the net earnings driven largely by higher trading income and electronic banking fees.

“Nevertheless, we note that the forthcoming elections and growing budget deficit have forced the FGN to modify several extant tax legislations which will moderate the banking industry’s profits. Overall, Agusto & Co expects the industry’s pre-tax return on average equity to increase to 23 per cent in 2022,” it said.

“Our financial prospects for industry are largely stable in the near term. We adjudge the industry as resilient and the current trend of banks adopting the holding company structure to diversify into other financial services segments while exercising control over subsidiaries should support the Industry’s profitability.”

“The African Continental Free Trade Area (AfCFTA) is also another vital prospect for Nigerian banks given that financial institutions with a strong capital base and efficient network across the continent are essential for the full implementation of AfCFTA. Overall, Agusto & Co believes the banking industry’s performance will remain moderate in the short- to medium-term and, on this basis, our outlook for the industry is stable.”

Eighty five per cent of payment transactions in Sub-Saharan Africa is still cash-based, Founder/Group CEO Interswitch, Mitchell Elegbe has said.

Speaking during the company’s 20th anniversary kick-off media parley held in Lagos, he said  the runway for growth remains significant as over 50 per cent of Nigeria is still unbanked or underbanked.

He said that “today, technology is at the forefront of society and will continue to play a significant role in how we work and live. Nigeria is fast becoming the tech-capital of Africa, with one of the fastest growing tech markets in the world. Interswitch has always been focused on the bigger picture, with the understanding that “going it alone” is not the answer, and that we do better by working together. Building a profitable, thriving business has been important, but in order to achieve our purpose of Inspiring Africa to Greatness, we had to play our part in providing an enabling environment for the holistic ecosystem to thrive”.

He said that to herald its 20th anniversary commemoration, Interswitch has launched a new brand campaign to project its positioning as a pioneering and integral enabler that has not only actively supported the growth and development of fintech and payments across Africa over the last 20 years, but also to amplify the brand’s progressive outlook as a frontier-driving company which keeps pushing boundaries and facilitating the creation of new ecosystems that help businesses and individuals scale and thrive, in line with its purpose of inspiring Africa to greatness through innovation, value-creation and excellence.

“Today, as we flag off our celebrations, there is quite a lot of excitement within Interswitch, but also some deep reflection as we look back on the journey of the last two decades – 20 years of transforming Africa’s digital economy. Interswitch was founded to solve a social problem – to make people’s lives easier when it came to payments, transactions and accessing their funds. We saw a way to do this by developing products and services with the consumer at the heart, leading with technology and innovation. As is the case with many pioneers, while we navigated uncharted waters, there were times when we pushed ahead with absolutely no assurances and buoyed up by just sheer tenacity and grit.  At those times, the big picture kept us going, our dream to deliver a prosperous Africa, driven by a seamless exchange of value and commerce”.

Elegbe went on to assert that the foregoing was the foundation upon which Interswitch’s two flagship products, Quickteller and Verve, were created – born from the over-arching mission to solve problems and focused on delivering comprehensive solutions for individuals to make everyday payments, to help connect and simplify the lives of our consumers across the continent.

Capturing the essence of Interswitch’s new ‘Never Stop’ campaign, Cherry Eromosele, the company’s Executive Vice-President for Group Marketing and Communications stated that “Anniversaries not only give the chance to celebrate how far we’ve come in our journey, but also provide the opportunity to stop, reflect and launch out again with fresh passion, a renewed zeal and a clearer vision. This is what underpins the philosophy that has given rise to #NeverStop. As we look ahead, we see enormous potential for future growth and the furthering of our vision. The outlook is rapidly evolving; At Interswitch, we also see the application of digital payments as being sector-agnostic and, with the increasing adoption of technology and digital payments across Nigeria and Africa, opportunities to broaden the fintech/payments landscape continue to present themselves”.

Over the next six months, the company intends to progressively unveil a line-up of brand campaigns, commemorative events and thought-leadership initiatives centered around this significant corporate milestone on a Pan-African level.

Interswitch is a leading technology-driven company focused on the digitization of payments in Nigeria and other countries in Africa. Founded in 2002, Interswitch disrupted the traditional cash-based payments value chain in Nigeria by supporting the introduction of electronic payments processing and switching services.

Today, Interswitch is a leading player with critical mass across Africa’s developing financial ecosystem and is active across the payments value chain, providing a full suite of omni-channel payment solutions. Interswitch’s vision is that of a prosperous Africa, driven by a seamless exchange of value and commerce and its mission is to create technology solutions that connect and empower individuals, businesses, and communities. Interswitch’s broad network and robust payments platform have been instrumental to the development of the Nigerian payments ecosystem and provide Interswitch with the infrastructure to expand across Africa.

Interswitch continues to create and facilitate technology solutions and platforms that support a variety of industry ecosystems which help commerce evolve, businesses grow, and individuals thrive, with solutions and services that are secure and provide convenience and real value for consumers, whilst also improving operational efficiency and driving sustainable revenue growth for businesses.

Stanbic IBTC Bank Plc has  intensified efforts in providing financial products and services for businesses in the agro-allied industry.

The product development drive aligns with  the bank’s  determination to expand and support the agriculture and agro-allied industrial sector in Nigeria

The agro-allied industries are central to sustainable development. The agricultural sector is critical for generating employment, supporting the economy in farming communities, and providing food and nutritional security.

Head, Agribusiness, Stanbic IBTC Bank PLC, Wole Oshin, said that Nigeria’s ambition for accelerated and inclusive economic growth was contingent on achieving a vibrant agro-allied sector that can support extensive enterprise development and employment.

Wole stressed that Stanbic IBTC offered various credit facilities across the agricultural sector that aid value chain players to thrive.

“The available loan facilities are targeted at agribusineses to provide short-medium term financing needs of crop and livestock producers, processors, their distribution chain and other value chain players. The loans provide revolving working capital (to meet day-to-day operational needs and purchase inputs like seeds, fertilizers, raw materials) and equipment finance  solutions to farmers and agribusinesses,” Wole said.

According to him, some benefits of the Stanbic IBTC agribusiness finance include the availability of gap funding for unforeseen financial needs, maintenance of cash flow and flexibility of repayment terms based on the type of funding. He added that the facility was also versatile and can be utilised for funding resources for small and medium-sized enterprises (SMEs), vehicles and farming equipment.

Furthermore, Wole added that Stanbic IBTC had intensified efforts towards the improvement of the agro-allied sector by offering free capacity-building sessions to SMEs in the industry, noting that most sessions helped in educating SME owners on key business skills.

Wole noted that Stanbic IBTC Bank equally provided financing solutions for agricultural enterprises to suit their requirements concerning the availability of resources to purchase mechanised farming equipment, as well as the enhancement of seasonal cash flow for industrial production.

“For instance, Stanbic IBTC committed ¦ 50 billion to launch a nationwide agricultural finance scheme. The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and signed a memorandum of understanding to boost agricultural productivity and modernisation by facilitating increased bank lending to the sector.”

Wole said that Stanbic IBTC has committed these funds for the takeoff of the scheme. The first phase of the scheme is projected to impact thousands of lives through job creation, and boost the revenue of farmers and businesses in the agro-allied industry, which is a testament to the financial institution’s efforts to drive inclusive economic growth through agriculture.

He explained that Stanbic IBTC envisioned that the programme would increase farmland output, diversify the revenue base, and provide vital resources and raw materials to the manufacturing sector. He said that the idea of providing financial solutions for agriculture and agro-allied industries as a strategy for accelerated economic growth is gradually beginning to take hold.

“Stanbic IBTC understands that funding the agro–allied industries is a sure way to diversify the Nigerian economy, as these industries are primed to spark off rapid enterprise development in Nigeria,” Wole noted.

Enhancing credit access to small farmers and agro-based enterprises at low rates of interest will have a far-reaching impact on the micro and macro economy. The growth of the agricultural sector is pivotal to economic development. Stanbic IBTC recognises this and that is why the organisation is intentionally developing initiatives and fostering partnerships that support players in the industry.

Youth Business International (YBI) backed by FATE Foundation will be honoring winners in the Global Young Entrepreneur of the Year.

The FATE School of FATE Foundation, named Babajide Oluwase with their business, Ecotutu Limited as the finalist in the COVID Resilience Award.

Ecotutu Limited is a cleantech company with a significant impact in making cooling affordable and accessible for businesses, especially in the agriculture and health sector.

A statement said: “Youth Business International is the global network for organisations supporting youth entrepreneurship. YBI supports young people around the world to start, grow and sustain businesses, leveraging entrepreneurship to create decent work and drive inclusive economic growth, whilst transforming livelihoods and strengthening communities.  Our global network acts as a platform for members to exchange ideas, knowledge and insights, and to collaborate in a way that catalyses entrepreneurs’ success and multiplies impact”.

Three outstanding young people were chosen across the three categories Green Business of the Year, COVID Resilience Award, and Business for Good Award.

The FATE School of FATE Foundation was created to harness the strong entrepreneurial culture of Nigerians by providing aspiring entrepreneurs business incubation, growth and accelerator support required to fully explore their innovative potential, to start, grow and scale their businesses.

Executive Director, FATE Foundation, Adenike Adeyemi said, “We are excited to have one of our entrepreneurs, Babajide Oluwase, OCN Cohort 3, emerge as the finalist for the COVID Resilience Award as part of the 2022 Global Young Entrepreneur of the Year Award by Youth Business International. Babajide is a goal-driven and innovative young entrepreneur. Without mincing words, we believe that if he is given this opportunity, it will transform his life and business to do more. We wish him the best.”

CEO, Ecotutu Limited, Finalist, Covid Resilience Award, Babajide Oluwase said, “The experience of building Ecotutu and enabling businesses in the agriculture value chain has been quite a journey for my team and I. I am very happy to be listed as the finalist for the Covid Resilience Award by YBI. I look forward to emerging as the overall winner as I depend on your vote and support. I look forward to creating impact on a bigger scale.”.

CEO YBI, Anita Tiessen, said, ‘We see young people with ambitious and inspiring businesses every day and this year’s Global Young Entrepreneur of the Year finalists showcase the best talent and determination of the young entrepreneurs supported across our network. It’s particularly special to see young people overcoming the odds and growing their businesses from strength to strength through the exceptional challenges of recent years as well as recognizing the incredible young people creating businesses with purpose over profit aiming to address environmental problems and improve the lives and livelihoods of their communities. “

This year’s Summit will be taking place over three days in the Netherlands from 18-20 October 2022 and the theme is Unleashing the Power of Youth Entrepreneurship as a Force for Good.

Over three days we will shine a light on the inspiring young people from across our network and showcase how their businesses are addressing global issues like hunger and climate change, driving forward the green economy and plugging gaps in social welfare.

The award finalists were selected across three categories and  the  public are invited to cast their vote for them.

The nine young entrepreneurs will travel to The Netherlands to participate in Youth Business International’s Global Youth Entrepreneurship Summit.

The Summit will bring together leading experts, influencers, funders and decision-makers in youth entrepreneurship. This will be a momentous occasion for our network. Our chance to reflect, connect and collaborate in person after the challenges of recent years.

Sterling Bank Plc has introduced virtual cards for existing and prospective OneBank customers free of charge to enable them to make easy and fast local or international payments on sites like Netflix and Apple as well as shop on sites like Amazon, among others.

Chief Digital Officer with Sterling Bank, Olayinka Oni, who disclosed this in a statement issued by the bank recently, said the service is open to all registered and new customers of OneBank and available on the OneBank app.

He advised new customers to open an account by downloading the app on the iOS store or Andriod play store to create their virtual cards.

According to Oni, Sterling Bank launched OneBank in 2019 as a fully digital banking solution. He explained that the solution offers the customer the ability to register and bank instantly, adding that the solution also allows the customer to make payments, invest and borrow money.

He said that with OneBank, customers could carry out all banking services without entering a branch. He can self-onboard, enter his BVN, upload his documents, and start transacting without entering any Sterling bank branch.

Customers using OneBank can experience the ease of starting an investment plan, applying for a loan, and transferring forex, as well as enjoy a dynamic news feed, scroll through forex updates, and many other features, he added.

Sterling Bank Plc is a leading national commercial banking establishment in Nigeria. It commenced operations as NAL Bank in 1960. The bank has developed into a significant financial institution with total assets of N1.629 trillion at present, 141 business locations, and 700 ATMs nationwide.

It is engaged in commercial banking services with an emphasis on retail, commercial, and corporate banking, trade services, investment banking activities, and non-interest banking.

It also provides wholesale banking services, including granting loans and advances, letter of credit transactions, money market operations, electronic banking products, and other banking activities