The Nation Newspaper

Category: Money

  • Ecobank extends remittance services to business accounts

    Ecobank extends remittance services to business accounts

    Ecobank Nigeria has extended its innovative remittance services to its business account holders. This implies that Business Account holders can receive funds sent through Ecobank Rapidtransfer or any of its Remittance franchise partners through the Business to Business (B2B), Business to Customer (B2C) and Customers to Business (C2B) transaction types into their business accounts. The bank is also working to enlist other International Money Transfer Operators (IMTOs) for a more robust remittance offering.

    Head of Consumer Banking Korede Demola-Adeniyi, said the launch of the service affords business owners in Nigeria to receive monies sent by both individuals and corporate organisations anywhere to their Ecobank domiciliary accounts, stating that the bank has put in place seamless account opening procedures for those who do not have domiciliary accounts for them to enjoy the service.

    She maintained that the development is in line with the bank’s strategy to provide accessible remittance services to Nigerians, listing the various channels which these remittances can be accessed as Rapidtransfer app, Ecobank Mobile App, Ecobank Online, and any of the bank branches.

    “For us as a bank, we are excited about these and other future collaborations as our contributions to drive remittance inflows into the country, promotes trade and foreign direct investments, create businesses, spur entrepreneurship, and generally develop the Nigerian economy. Some of the benefits for business account holders include no limits to how much they can receive, no hidden charges and there is also the opportunity to invest the funds received in foreign currency at a competitive rate.

    “The Rapidtransfer is our proprietary product. It is licensed by the nation’s apex bank; Central Bank of Nigeria (CBN) as an international money transfer product and it is also licensed in Europe. Diaspora remittances can be sent from anywhere in the world using the Rapidtransfer app – available for download in the Google play and iOS stores.”

  • Bayelsa seeks Heritage Bank’s backing for youth devt

    Bayelsa seeks Heritage Bank’s backing for youth devt

    The Bayelsa State Government has indicated interest in partnering Heritage Bank Plc on youth empowerment and sport development.

    The Deputy Governor, Lawrence Ewhrudjakpo, made this known during a visit to Heritage Bank’s Head Office in Lagos.

    During the visit, which included by the Commissioner for Youths and Sports, Daniel Igali and others, Ewhrudjakpo expressed the state government’s readiness to collaborate with Heritage Bank to empower youths and develop sports with the intent to put measures in place to play-up their socio-economic well-being and for the identification and development of budding talents.

    He commended Heritage Bank for its pivotal role in enhancing youth development and supporting the entrepreneurial spirit for growth.

    “We believe with that, there is going to be first, removing our youths from drugs dependency and we are also using them to win.We really want to see how Heritage Bank can partner with us or support of which we have adequate publicity,” he stated.

    Ewhrudjakpo affirmed that the Governor Douye Diri-led administration would do everything within its reach to foster a mutually beneficial partnership.

    Heritage Bank’s Executive Director, Jude Monye, assured the Deputy Governor of the financial house’ readiness to support the Bayelsa Government on youth empowerment and sport development.

    He noted that with the bank’s feats toward empowering young Nigerians and sport development showed the bank has strong desire towards developing and positioning youths to become world-class citizens equipped and ready to be absorbed into an increasing competitive professional skills and endeavours.

    Monye further said Heritage Bank has been at the forefront of supporting good courses involving youths and sport. He reiterating the bank’s Managing Director/CEO, Ifie Sekibo’s readiness to partner Bayelsa State Government.

    “On behalf of the CEO and the Board, I want to say, we will support the course of Bayelsa State as far as sports in concerned. Whether it is wrestling, athletic, football, soccer, we will be part of it,” he assured.

    The ED added: “We have always supported good courses; we are a small bank and relatively new. We will support the Bayelsa State Government because we want to see the youth brought out of drug peddling and drug consumption to where their life can be useful.”

    He recalled that when it concerns youth empowerment and sport development, the bank had carved a niche in collaborating with public and private organisations, especial state governments such as Lagos, Rivers State, Oyo, among others, to build a culture of sports together with the formal education and entrepreneurship in a bid to secure the future of the teeming population.

  • Lafarge Africa empowers youths

    Lafarge Africa empowers youths

    Lafarge Africa Plc is empowering youths of its host communities through technical skill acquisition aimed at making the youths socially and economically successful.

    Community leaders and members of Mfamosing and adjoining communities in Cross River State have expressed delight at Lafarge Africa’s skills acquisition and empowerment programme, noting that the corporate social responsibility (CSR) initiative was having positive impact.

    One of the beneficiaries, Mrs. Ruth Peter, a mother of two from EkongAnaku community said Lafarge sent her on training in fashion design for one year and after that, gave her starter packs including a sewing machine.

    “I saved the stipend they were giving me during my one-year training from October 2020 to October 2021 to rent this shop. Since I started sewing, I have bought two additional machines from the money I made from sewing. When we were undergoing the training, we were advised to ensure we train others when we graduate. These two girls here are undergoing training under me for free. As the company trained me for free, I am also training them for free,” Peter said.

    Similarly, Kashang Obiri, also from EkongAnaku community who is currently studying Computer Science at the University of Cross River State (UNICROSS), said that he obtained training in welding and fabrication and got starter packs at the end of his training.

    “My training lasted for one year and six months. I can apply the knowledge I gathered during the training anywhere in the world. I am very grateful to Lafarge for sponsoring me for the training. I have been using the skill I learnt to support myself in school,” Obiri said.

    16-year-old Favour Odok from Kasuk Community in Calabar Municipal Local Government Area of the state threads in an uncommon terrain for older women, let alone of girls of her age. Odok is undergoing training in mechanical engineering where she is being taught how to fabricate automobile parts as well as fix haulage trucks that need repair.

    “I specialize in the fabrication of carburetors and injectors of haulage trucks. Very soon I will go across the road to fix one of the trucks,” Odok said.

    It is a similar positive story from the Mfamosing community in Akamkpa Local Government Area where 21-year-old Miss Gift Ekun said she was a beneficiary of Lafarge Africa’s skills empowerment programme.

    “I went through Electrical Engineering training. I am through with it, and I have been given admission to study the same Electrical Engineering at the University of Cross River State, UNICROSS. I thank Lafarge because what they taught helped me to prepare for university education. May God bless Lafarge,” Ekun said.

    Another beneficiary, Edwin Etta, from Mboby community, Akampka LGA said that through the company’s empowerment scheme, he benefited immensely from the training in block-molding and bricks making.

    “Since last year, after I finished training, my life has improved, and I am very happy now. I even chose where to work because what I learnt from the Lafarge training can hardly be given to you anywhere else,” Etta said.

    Joseph Okon from Essien Town, in Calabar municipality, said since he completed his training in welding and fabrication last year his financial situation has improved.

    “ I remain grateful to Lafarge because I no longer depend on my parents for money. Since I am still working in the shop where I was trained, I have been able to save some money, and with the starter pack given to me by the company, I will set up my shop soon. I also support my younger ones, and my mother who is a trader. My mother keeps praying for all the good things to happen to Lafarge,” Okon said.

    Community Relations Committee Chairman for Mboby community in Akampka LGA and the 17 communities that make up the Lafarge Host Communities, Ntufam Bassey commended Lafarge for the support it has been rendering to the communities.

    “In terms of human capacity development, the building solutions company stands head and shoulders above many companies operating in the host communities,” Bassey said.

    Also appreciating the support of the company in the state, Mr. Akpa Agbor, Director of Environmental Quality Control, Cross River State Ministry of Environment said the people and government of the state sincerely appreciated the positive impact of Lafarge Africa through the implementation of its CSR programmes.

    “These gestures have gone a long way to touch lives in the host communities in particular and the state at large,” Agbor said.

    Mr. Benedict Okache, Director of Information and Orientation, Cross Rivers State Ministry of Information, Mr Benedict Okache noted that Lafarge Africa’s Mfamosing plant has over the years sustained a robust CSR programme that has been impacting positively on the socio-economic life of host community members.

  • Largest corporate bond vote of confidence in Dangote, says Vetiva

    Largest corporate bond vote of confidence in Dangote, says Vetiva

    The completion of a N187.58 billion largest corporate bond issuance by Dangote Industries Limited (DIL) was a vote of confidence in the Dangote Group and the immense potential of its forthcoming Dangote Petroleum Refinery.

    Managing Director, Vetiva Capital Management Limited, Mr Chuka Eseka said the diversity and quality of investors in the bond were evidences of the investors’ confidence in DIL.

    He said Vetiva was delighted to have acted as joint lead issuing house and bookrunner to the N187.58 billion bond issuance, which made history as the largest single bond issuance by a corporate in the Nigerian capital market.

    “This impressive outing by DIL is a testament to investor confidence in the company and the revolutionary potential of the project to be funded with the proceeds of the bond issuance.

    “We thank the board and management of DIL for trusting us and the other professional parties on this landmark transaction and giving us the opportunity to deploy our capital raising expertise on the issuance,” Eseka said.

    The bond issue attracted participation from a diverse range of institutional investors, including pension funds and asset managers, supported by an AA+ rating from GCR and an AA (ngr) rating from Fitch.

    The strong level of subscription was regarded as an indication of the investor confidence placed in DIL’s position as the largest and most diversified industrial conglomerate in West Africa, its strong management team, business strategy and credit profile.

    Managing Director, Dangote Industries Limited (DIL), Mr. Olakunle Alake expressed delight at the remarkable success of the bond issue and commended the issuing houses and other professional parties for working tirelessly to ensure the timely and successful completion of the bond issue.

    “We are highly pleased at the level of reception from the investor universe on the series I bond issuance and to have set this remarkable milestone, showcasing the depth and liquidity of the Nigeria debt capital market.

    “The success of this transaction further demonstrates investor confidence in our credit story and the appreciation of the work done by the group across several key sectors that are crucial to the development of the continent,” Alake said.

    He outlined that the net proceeds from the landmark transaction would be used to part-finance the Dangote Petroleum Refinery project,  an initiative by the group to establish the largest refinery in Africa, thus positioning Nigeria as a net exporter of refined crude.

    “We appreciate the trust which our investors have reposed in us, as well as our various advisors and stakeholders,” Alake said.

    The N187.6 billion Series 1 Bond was the first issuance by DIL at group level. The bonds  comprised of a seven-year tranche-A bond issued at 12.75 per cent and a 10-year tranche-B bond issued at 13.50 per cent. The N187.6 billion bond was issued under the group’s newly established N300 billion debt issuance programme. The bonds will be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange.

    DIL is one of the leading, diversified and fully integrated conglomerate with operations in Nigeria and Africa across a wide range of industries, including cement, sugar, salt, condiments, packaging, energy, fertiliser and petrochemicals.

    The group’s core business focus is to provide local, value-added products and services that meet the “basic needs” of the African populace through the construction and operation of large-scale manufacturing facilities in Nigeria and across Africa.

    DIL is focused on building local manufacturing capacity to generate employment, reduce capital flight from Africa and increase local value additions.

    The group has 11 distinct business lines, with the cement, sugar and salt business currently contributing majority of the group earnings. These subsidiaries are industry leading players with strong brand values, underpinned by long operational track record, diverse customer base, ongoing investments in capacity expansion and control over their respective value chains.

    DIL also has two project companies, Dangote Oil Refinery Company Limited (DORC) and Dangote Fertilizer Limited (DFL), located at the Lekki Free Zone in Lagos State, which together with DIL will serve as co-obligors on the bond issue.

    DORC is a 650,000 barrels per day  integrated crude oil refinery and petrochemical plant, which is expected to be Africa’s largest oil refinery, while DFL is expected to be Africa’s largest granulated urea fertiliser manufacturing facility, with a production capacity of up to 2.8 metric tonnes per annum (Mtpa).

    DIL is currently domestically rated AA+ by GCR and AA (ngr) by Fitch Ratings

  • Sovereign Trust Insurance seeks N1.42b from shareholders

    Sovereign Trust Insurance seeks N1.42b from shareholders

    Sovereign Trust Insurance (STI) Plc is seeking to raise about N1.42 billion new equity capital from its shareholders.

    Regulatory documents obtained at the weekend indicated that Sovereign Trust Insurance plans to issue some 2.84 billion ordinary shares of 50 kobo each at par to existing shareholders of the insurance company.

    As a rights issue, the shares will be pre-allotted to shareholders on the register of the insurance company as at Friday, July 22, 2022 on the basis of one  new ordinary share for every four ordinary shares held.

    The rights issue is expected to be completed this quarter and subsequently listed on the Nigerian Exchange (NGX).

    The planned capital raising will be the second major fund raising by STI in four years. It had in 2019 raised N2.09 billion from its shareholders. STI had offered 4.17 billion ordinary shares of 50 kobo each at 50 kobo per share.

    Shareholders of STI had in 2019 approved a new capital raising plan for the insurance company. Shareholders had authorised the board of the company to create 5.0 billion new ordinary shares of 50 kobo each to increase its authorised share capital to N10 billion of 20.0 billion ordinary shares of 50 kobo each.

    Shareholders also approved the proposal to raise “additional equity capital for the company up to the maximum of the authorised share capital” with additional mandate to the board to absorb excess money in the event of oversubscription of the initial offer.

    The National Insurance Commission (NAICOM) had in May 2019 released new capital requirements for insurance businesses with directive operators to shore up their minimum capital base to the required level. The minimum paid-up share capital of a life insurance company was increased from N2 billion to N8 billion, non-life insurance from N3 billion to N10 billion, composite insurance from N5 billion to N18 billion while re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.

    Insurance companies are required to comply fully with the new minimum capital base by June 30, 2020. While the new capital requirements have been suspended,  any insurance companies are taking proactive steps to rebuild their capital base.

    NAICOM recently revoked the operating licences of two insurance companies over their inability to meet their financial obligations.

  • Investors scurry for safety in big banks

    Investors scurry for safety in big banks

    Investors in the Nigerian stock market appeared to be adjusting their portfolios towards banking stocks amidst fears that rising interest rates could dampen performance in the third quarter.

    With nearly two decliners for every advancer, Nigerian equities lost N127 billion last week. Average return for the five-day trading week stood at 0.45 per cent at the weekend, depressing the average year-to-date return to 21.69 per cent.

    Three top-tier banks-United Bank for Africa (UBA), Guaranty Trust Holdings Company (GTCO) and Access Holdings,  however, led trading, accounting for more than one-thirds of total turnover for the week.

    The Central Bank of Nigeria (CBN) had during the week increased the benchmark interest rate to 14 per cent, sustaining its new hawkish stance. Many analysts still expect further increase in the benchmark Monetary Policy Rate (MPR).

    Trading in UBA, GTCO and Access Holdings accounted for 355.624 million shares worth N4.120 billion in 3,486 deals, representing 38.77 per cent and 27.83 per cent of the total equity turnover volume and value.

    Total turnover at the Nigerian Exchange (NGX) stood at 917.190 million shares worth N14.803 billion in 19,513 deals as against a total of 504.322 million shares valued at N7.517 billion traded in 12,393 deals two weeks ago.

    With the increased activities in major banking stocks, the financial services sector remained atop activities chart with a turnover of 648.207 million shares valued at N6.258 billion in 9,293 deals; representing 70.63 per cent and 42.27 per cent of the total equity turnover volume and value respectively. The consumer goods sector followed with 102.605 million shares worth N3.211 billion in 3,016 deals while the conglomerates sector placed third with a turnover of 36.218 million shares worth N193.474 million in 562 deals.

    The benchmark index for the Nigerian equities market- the All Share Index (ASI) of the NGX closed weekend at 51,979.92 points as against its opening index of 52,215.12 points for the week. Aggregate market value of all quoted equities also dropped correspondingly from its week’s opening value of N28.158 trillion to lose weekend at N28031 trillion.

    All sectoral indices also closed negative with the exception of the industry trackers for the insurance and oil and gas sectors. The NGX 30 Index- which tracks the 30 largest stocks, posted average return of -0.56 per cent. The NGX Banking Index recorded the highest loss of 4.06 per cent. The NGX Consumer Good Index depreciated by 1.97 per cent while the NGX Industrial Goods Index slipped by 0.49 per cent. The NGX Pension- which tracks stocks in line with pension funds investment guidelines,  posted above average negative return of -0.88 per cent while the NGX Lotus Islamic Index-which tracks stocks that complies with Shari’ah rules, declined by 028 per cent.

    There were 19 gainers and 36 losers during the week compared with 20 gainers and 32 losers recorded in the previous week. Cornerstone Insurance led the gainers, in percentage terms, with a gain of 26.32 per cent to close at 72 kobo per share. Seplat Energy followed with a gain of 10 per cent to close at N1, 430.50 while Linkage Assurance rose by 9.43 per cent to close at 58 kobo per share.

    On the negative side, Nigerian Aviation Handling Company (NAHCO) led the losers with a drop of 33.73 per cent to close at N5.50. NAHCO was adjusted during the week for dividend payment. Caverton Offshore Support Group followed with a drop of 16.79 per cent to close at N1.14 while Honeywell Flour Mills dropped by 14.55 per cent to close at N2.35 per share.

  • UBA Dubai targets corporates, financial institutions’ clients

    UBA Dubai targets corporates, financial institutions’ clients

    The UBA Dubai has commenced operations, focusing on corporates and financial institutions’ clients, the bank announced yesterday.

    In a report entitled: Five key facts about UBA’s Operations in Dubai, UBA Group said the Dubai Branch will engage new corporate and financial institution clients and refer them to other UBA Group subsidiaries and branches for on-boarding, lending, among other services.

    The bank said it is taking the step because it has ‘advising and arranging’ licence in Dubai International Financial Centre (DIFC), Dubai, which means it does not extend credit or take deposit in Dubai.

    “We have an ‘advising and arranging’ licence in DIFC, Dubai, which means we do not extend credit or take deposit in Dubai. We do not run a local balance sheet in UBA Dubai, and hence do not open bank accounts in Dubai for any client, be it corporate or financial institution,” the bank stated.

    It explained that DIFC is a wholesale jurisdiction, hence any retail customer dealing is expressively prohibited, adding that UBA Dubai clients are corporate, and financial institutions.

    “With or recent launch in Dubai, United Arab Emirates (UAE), as our 24th location and fourth continent, the Dubai Branch will manage and serve the group’s corporate and financial institution clients with the aim of deepening our share of their business,” it said.

    The bank added that it will also promote correspondent banking relationship in the Middle East.

    “We will broaden our client base-corporate and financial institution clients- beyond Dubai and UAE to the entire Middle East; cross sell the Group’s Corporate banking products while loans and deposits will be booked in other group entities,” it said.

    According to the UBA Group,  the UBA Dubai branch  will also offer Letters of Credit beneficiary to clients,  originate transactions and negotiate deals that will be booked in other UBA Group subsidiaries and branches.

  • Why edible soya oil consumption is crucial, by stakeholders

    Why edible soya oil consumption is crucial, by stakeholders

    Stakeholders have called for Nigerians to consume  good edible soya oil to get the right nutrients needed to create wealth and support the economy.

    They said edible oil makes the heart work well and against its (heart) diseases that kill very fast. One such is the Golden Terra Soya Oil, which has been reintroduced in the market.

    The “Golden Terra Soya Oil is doing so by offering 5x more Polyunsaturated Fatty Acid (PUFA) healthy fatty acid profile from edible oil.  In comparison to the 10 per cent to 11 per cent PUFA contents of some other “healthy vegetable oil” brands on the market shelf, the 62 per cent PUFA contained in Golden Terra Soya Oil gives you at least 5x more ‘good fats’ to promote a healthy heart needed to achieve your goals.’’

    A nutritionist, Dr. Olaniran Olabiyi, agreed. He noted that the consumption of edible oil and food items with high PUFA content is beneficial to one’s heart.

    ”Whenever people visit the market to purchase edible oil, they should read the labels and see the concentration of different types of fatty acids contained therein,” he said.

    ”Oils that have the highest amount of polyunsaturated fatty acids should be purchased because they are friendly to the heart, compared to those that have higher levels of saturated fatty acids. People should also reduce the amount of palm oil they use in cooking because it has high levels of saturated fatty acids.

    ”So, what does one’s heart want? If staying healthy and maintaining optimal performance is the goal, Golden Terra Soya Oil is the edible oil that is sure to get it there. Staying 5x PUFA conscious is the key to heart-friendly meals.

    “As you prepare your next meal, feed your heart 5x PUFA using Golden Terra Soya Oil, the leading soya oil in the market with presence across the country. It is 100 per cent pure soya oil, sourced and manufactured in Nigeria, available in sachets, five litres, 10litres and 25 litres,” Olabiyi advised.

    A nutritionist in Lagos, Michael Obi, explained: “Polyunsaturated fats include omega-3 and omega-6 fats. These are essential fatty acids that the body needs for optimum brain function and heart health. Our bodies do not make essential fatty acids, so you can only get them from food.’’

    “It is an excellent choice for those looking to choose more healthy fats that the heart and body require to function. When making the decision for the best edible oil for you and your family, it is important to go for oil with a higher healthy fat content.”

    Also, a businesswoman, Mrs. Maureen Adewole, said she looks forward to  some healthy index when shopping for edible oil. She is one of those rooting for use of healthy edible oil, because many contain monounsaturated, polyunsaturated, and saturated fats.

    Continuing, Mrs. Adewole said the most important thing to check when buying oil is the amount of saturated fat. Other nutritionists said saturated fat is a dietary fat, regarded as bad or unhealthy fat. Along with trans-fat, eating lots of saturated fat can raise your cholesterol level and increase your risk of heart disease.The proportion of saturated fat in your edible oil must be very limited to achieve a healthy heart.

    The right oil, they said, should contain 5x more Polyunsaturated Fatty Acid – an healthy fatty acid profile from edible oil.

    For the stakeholders, the popular saying goes, the heart knows what it wants. And for it to keep you alive and well, your heart must get whatever it requires to function as healthily and vibrantly as any other organ of the body!

    The race to keep your heart healthy actually starts from a consciousness of what you consume. When you go shopping for your choice of food including edible oil, what healthy index do you look out for? Many edible oils on the market shelf contain a mix of fats, including monounsaturated, polyunsaturated, and saturated fats in varying proportions.

    If your aim is to buy healthy cooking oil, there are a few things that you need to check on its label to know if it is actually best for you. The most important thing to check is the amount of saturated fat. Saturated fat is a type of dietary fat, regarded as “bad” or unhealthy fat. Along with trans-fat, eating lots of saturated fat can raise your cholesterol level and increase your risk of heart disease.  So the proportion of saturated fat in your edible oil must be very limited to achieve a healthy heart.

    On the other hand, Polyunsaturated fats are “good” or healthy fats which help lower the bad cholesterol level and risk for heart disease. Polyunsaturated fats include omega-3 and omega-6 fats. These are essential fatty acids that the body needs for optimum brain function and heart health. Our bodies do not make essential fatty acids, so you can only get them from food.

    Soya bean oil is among the healthiest edible oils due to its high health-promoting polyunsaturated fat (60 per cent). It is an excellent choice for those looking to choose more healthy fats that the heart and body require to function. When making the decision for the best edible oil for you  and your family, it is important to go for oil with a higher healthy fat content.

  • Cinetpay joins Verve International network

    Cinetpay joins Verve International network

    Payment technology and card business, Verve International has welcomed its first francophone e-commerce and merchant aggregator, CinetPay into the Verve ecosystem.

    CinetPay, the Ivorian-based FinTech provides online and Point-of-Sale (POS) payment solutions for merchants to process payments from more than 40 different payment operators in West and Central Africa.

    The partnership is expected to further establish the Verve footprint across the region and support merchants to accept Verve cards from customers of issuing banks in 13 African countries.

    The Chief Executive Officer (CEO) of Verve International, Vincent Ogbunude, said: ”We are pleased to welcome CinetPay to the Verve network – the next in a series of strategic African FinTech partners we are welcoming into our network. As the leading pan-African payment scheme, our focus remains to rapidly expand and deepen our network by partnering FinTech companies, switches, processors, banks, merchant aggregators, and regulators. CinetPay is one of such partners and we look forward to deepening our impact through this mutually beneficial partnership.”

    Also, CEO/co-founder of CinetPay, Idriss Marcial Monthe said: “We are pleased with this partnership with Verve International which will broaden the payment collection choices for our merchants.’’

    This partnership brings us closer to our ambition, known to all and which is to offer the best online payment experience in Africa through simple, fast and secure transactions.’’

    The partnership was birthed following months of a collaborative effort by the CinetPay team, Verve’s joint partner bank in the West African Monetary and Economic Union (UEMOA), and various teams in Verve International and Interswitch Group.

    In recent times, Verve has focused on leveraging strategic partnerships to heighten its impact across African regions. In the East African region, the payment scheme deepened its partnership with KCB Bank of Uganda in a move that saw the acceptance of the Verve Card on KCB Bank’s widespread and strategically distributed Point of Sale (POS) merchant network in Uganda.

    Verve International is the first and only EMV-certified pan-African payment scheme, issuing cards and payment solutions to individuals, issuers, and organizations; and remains committed to pushing the bounds in terms of customer experience and payment possibilities.

  • UBA Group: Facilitating trade finance in regional, global markets

    UBA Group: Facilitating trade finance in regional, global markets

    The entry of United Bank for Africa (UBA) Group into Dubai presents a vehicle for harnessing business opportunities, especially trade finance, in Middle East, Africa and South Asia (MEASA) with $7.7 trillion Gross Domestic Product (GDP). The bank, which operates in various countries in Africa, United States, United Kingdom, France and Dubai, will be using these networks to connect African businesses to the world. The UBA Plc,  Dubai International Financial Centre (DIFC) branch, launched last week, operates under the category four licence and regulated by the Dubai Financial Services Authority (DFSA). Assistant Business Editor COLLINS NWEZE, who covered the event, reports.

    Dubai, the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, has so many things going for it.

    Its ultra-modern architecture, strong currency and being a first-class jurisdiction with access to regional and global markets made it outstanding from other cities.

    Most first-time visitors to Dubai are thrilled by the strength of its currency, Dirhams (AED), which is almost at par with the United States dollar. The Dirhams exchanges at 3.67 to $1.

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

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

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

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

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

    The UBA Plc (DIFC Branch) operates under the category four licence and regulated by the Dubai Financial Services Authority (DFSA), which is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre.

    Speaking during the branch opening in Dubai, Chairman, UBA Group, Tony O. Elumelu, said  DIFC Branch was a strategic move by the bank to connect African businesses to Gulf investors and deepen  the African economies.

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

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

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

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

    UBA Dubai will service corporate and financial Institutions and customers across the Middle East with a core focus on correspondent banking, relationship management and advisory services.

    Elumelu explained that with the Group’s foray into the Gulf Region, UBA continues to focus on its strategic intent to lead the way when it comes to doing business in Africa.

    He added: “Collaborating with our franchises in 20 African countries and the major financial centres of London, New York and Paris, UBA (DIFC Branch) will facilitate the financing of trade transactions between the Middle East and Africa, enabling trade finance and investments.

    ‘We have been looking forward to this day as it is the first time we will have presence in this part of the world. We know that our international expansion is incomplete if we are not present in the gulf.’’

    UBA’s Group Managing Director/CEO, Kennedy Uzoka, said, “Today, we are on four continents across the globe, operating in 24 countries, serving over 35 million customers and still growing.

    “We are the only bank with Nigerian origin that has extended out of Nigeria to the UAE. Those before us have come through other locations and that shows the strength and respect the Dubai authorities have for UBA. Our presence in Dubai affirms that UBA is a strong franchise, expanding its reach across the world.

    “The authorities and business environment  in the DIFC is phenomenal and UBA is seeing Dubai as the gateway for Africa and that is why we are here, to be closer to our clients, to be partnering them and facilitate businesses and trade flows into Africa through the UBA franchise. So, we are super excited.’’

    On his part, the Chief Executive Officer (CEO), UBA (DFIC), Vikrant Bhansali, said: “Trade, commerce and investments in Africa are expanding in the Gulf Region and Asia. Leveraging the presence of UBA Group in global financial centres, UBA (DFIC) will enhance the ability of the group to facilitate access of Gulf investors and banks to African markets. We will finance trade, facilitate commerce and help grow investment in Africa, across all sectors.”

    CEO, Dubai International Financial Centre (DIFC) Authority, Arif Amiri, said: “UBA (DFIC) attests to the strong relationship between Dubai and Africa.

    “It is a beautiful start as we are looking forward to achieving more interaction, channelling more trade and investments into Africa, and with UBA DIFC, we are closer to achieving our objectives. DIFC will continue to seek partnerships that will deliver winning relationships as we have just witnessed with UBA Group,” he said.

    UBA Group has been in operation for over 70 years with presence in 20 African countries, the United Kingdom, the United States and France.

    UBA Dubai Branch/Nigeria, Africa markets

    Elumelu said the relationship between the Gulf and Africa had been strong and that there are a lot of Africans who do business in the Gulf region, adding that  there are a lot of people in the Gulf region that want to do business with Africa.

    He said these businesses need to find the right partners and financial institution to work with. So, UBA setting up in Dubai at this time, he said, would help to provide that payment and trade finance correspondent banking platform for our people and Africans who do business in the Gulf region and people in the Gulf region who do business with Africa.

    “It’s been a long journey; we have always hoped and wished for this to happen and we are happy that that audacious ambition or dream has become a reality and we are happy that UBA is berthing in the Gulf and Dubai precisely.

    “UBA, as you know, operates in 20 African countries with over 1,000 branches and 35 million customers and operates in the UK, France; and as the only African bank in America. So, we are happy to be extending our services to Dubai. UBA Dubai is the first Sub-saharan African bank to be fully authorised to operate as we have just commenced business,” he said.

    Also, he said there are advantages of coming to Dubai but, more importantly, it is a highly effective regulated environment. UBA, having operated in the US, which is a tougher environment, operating also in the DIFC complements that. But, more importantly, are the business opportunities that we see, no just for UBA, but for Africa.

    UBA UK operations/Africa-Europe trade

    In March 2019, UBA Group launched the UK branch to promote trade and commerce between Europe and Africa.

    Earlier, it the global lender had opened its subsidiary in Mali.

    The event attracted high-level gathering of business and public sector leaders to The Shard in the city of London.

    The launch followed the authorisation of the Prudential Regulation Authority(PRA) and the Financial Conduct Authority(FCA) for UBA UK Limited to carry out full scale wholesale banking across the UK.

    The UBA UK,  previously named UBA Capital (Europe), offers treasury services, cash management, correspondent banking, corporate lending and wholesale deposit products to professionals and eligible counter-parties.

    It also provides structured and trade finance, issuance, acceptance, confirmation and refinancing of Letters of Credit of different variations, among others.

    UBA Group further consolidates its strong franchise as Africa’s global bank, facilitating trade and capital flows between Africa and the world.

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

    UBA Plc sustains profitability in Q1

    The UBA Plc recorded N183.9 billion in its unaudited results for the first quarter ended March 31, this year.

    The bank, which achieved impressive growth across other income lines, grew its profit before tax (PBT) to N44.5 billion.

    The  PBT was higher than N40.6 billion recorded during the same period last year. Its profit after tax (PAT) stood at N41.5 billion during the period under review.

    The bank’s results, released to the Nigerian Stock Exchange, showed that gross earnings also rose by 18.3 per cent from N155.4 billion last year.

    Its operating income grew by 18 per cent to N125.9 billion, higher than N106.6 billion as at March,last year.

    The bank’s total assets rose by 4.1 to N8.9 trillion, compared to N8.5 trillion recorded at the same period of 2021, while shareholders’ funds stood at N825.7 billion, an improvement from N804.8 billion in the same period last  year. UBA sustained its strong profitability recording an annualised 20.4 per cent Return on Average Equity (RoAE).