Category: Money

First City Monument Bank (FCMB), through EasyAgents, its agency banking network and other channels, has empowered one million financially excluded Nigerians

As part of its financial inclusion programme, the bank has provided microloans worth N40 billion to over 300,000 beneficiaries, comprising 200,000 women traders who have accessed over $51.28 million (N28.7 billion) of the total loan sum.

The Managing Director, FCMB, Mrs Yemisi Edun, said: “We are proud of our significant role in integrating Nigeria’s huge informal economy driven by small-scale farmers, traders, artisans, and other small and medium-sized businesses into the formal economy through affordable and sustainable access to financial services. Access to financial services enables prosperity and allows disadvantaged and vulnerable people to improve their lives, create wealth and reduce poverty. So, we will continue championing and executing initiatives that deepen access to affordable and sustainable financial services in our local communities to empower individuals and businesses.”

In driving financial inclusion, FCMB embraced partnerships as critical success criteria. Last year, the bank partnered the World Savings Banks Institute (WSBI) to deepen agency banking and financial inclusion by rolling out an integrated savings account – ‘Easy Account’- to empower two million farmers by 2023. Under the first phase of the partnership, covering over 150,000 unbanked and under-banked farmers across five states, beneficiaries are provided funds and training support through agricultural agents operating under FCMB’s agency banking proposition. The states are Kaduna, Kano, Nasarawa, Ogun and Oyo. In addition, FCMB also recently signed an agreement with Shee-Coops to provide funding to women in the next five years

FCMB has invested about 10,000 agency bankers that bring financial services to the streets and doorsteps of millions of Nigerians in peri-urban and rural areas. They are driving the onboard of unbanked and under-banked Nigerians.

Bank accounts are being opened through agency bankers. As a result, they conveniently and securely make cash deposits, transfer funds, make withdrawals, obtain loans, buy airtime, and pay bills, among other financial transactions. In addition, they also have opportunities to access the bank’s agric value chain platform (EasyClub) and microloans to boost their standard of living and grow businesses.

Experts have identified gaps militating against the objectives by the Central Bank of Nigeria (CBN) to reduce the number of adult Nigerians who are excluded from the financial system.

Speaking at the inaugural conference of Oriental News Nigeria with theme “Engaging with critical groups to develop effective financial inclusion initiative” which held at the Sheraton Hotel, Ikeja, Lagos,  the Chief Executive Officer (CEO), Bank Customers Association of Nigeria, Dr Uju Ogubunka, stated that  the financial inclusion policy of the Federal Government, which commenced in 2012, is geared towards ensuring that no Nigerian is short changed in its financial intermediations policies and economic development plans.

Ogubunka said the government  then out of the 84 percent financially excluded population, targeted to achieve 20 per cent financial inclusion by 2020.

“The adult population has increased above 84 per cent and the unbanked population  has also increased remarkably. If the people are outside the financial  system, the economy will not develop,” Ogubunka stated.

He explained that financial inclusion commences with opening bank account, which factors in the account holder towards benefiting from government’s  financial support as the account drives other transactions of the account holder.

Also, to have insurance policy, investment accounts in the capital market, pension account and all forms of life and business enabling transactions driven only by the nation’s  financial system, you need to be financially included, he stressed.

“As some of us will remember, the CBN initiated the National Financial Inclusion Programme in 2012 that is, about a decade ago. The Programme is a response to the discovery from a study in 2010 that about 39.2 million or 46.3 per cent of the then 84.7 million adult population  were excluded from the financial system.

“That meant that 45.5 million or 53.7 per cent of the 84.7 million were included in the system. It was also noted that of the excluded 39.2 million adult Nigerians, about 21.3 million or 54.4 per cent, were females; meaning that about 17.9 million (i.e. 45.6 pe r cent) were males. So, females accounted for a higher number and percentage of the excluded than males. On the other hand, males accounted for a higher number and percentage of those included in the Nigerian Financial System.” he stated.

Ogubunka pointed that the above situations were identified to have negative/adverse consequences/implications for the financial system and the economy, especially as almost half of the financial resources in the country were in the hands of people operating outside the formal financial system.

He said, “Consequent on the foregoing, the CBN saw the need to redress it. Thus, it floated the Financial Inclusion programme and supported it with a Strategy Document tagged ”National Financial Inclusion Strategy”  that encapsulated, among many other things, the Strategy Objectives, Strategy Stakeholders and their Interests, and Key Financial Inclusion Targets. The initiative targeted a reduction of the rate of the excluded from 46.3% to 20% come year 2020. ( i.e. a reduction of 26.3%), meaning that the percentage of the included would rise to 80% from 53.7% within the same period.”

He said, Stanmeg Communication publishers of Oriental News, Nigeria, have provided this platform for the audience here gathered to brainstorm and contribute towards achieving total inclusion of all eligible adult Nigerians in the Financial System in order to drive and attain higher growth and development in both the Financial System and the National Economy, for the benefit of all Nigerians.

“I am impressed with this provided opportunity and therefore Congratulate the Organisers for their initiative which is worthy of emulation. By this, they have shown that they are concerned and serious minded stakeholders in the Nigerian Financial System and of colours, the economy.”

The guest speaker, Mallam Garba Kurfi, Managing Director APT Securities and Fubds Limited  buttressed   that financial inclusion policy of the government helps to ensures that funds that could have been deployed for entrepreneurial initiatives don’t end up in cupboards at homes.

Managing Director; CEO Arms Securities Limited, Mr Rotimi Edu, representing  Mallam Kufre, in his presentation said that the government is recording remarkable progress in the financial inclusion target, adding more hands are on deck to ensure that economic advantage of the country’s  large population translates to financial benefits to the people and institutions.

The government, he stated has designed  financial support initiatives for rural women, artisans, petty traders, the financially disadvantaged, which can only be extended to only people who operates bank accounts.

He said that funds are aggregated through savings in banks, investments in capital market or taking  policies in insurance companies, such funds are further deployed to catalize economic development through lending or for institutional growth.

Earlier in her opening address, Editor Oriental News Nigeria , Mrs Yemisi Izuora  said that the conference was conceived by Stanmeg  Communications, publishers of Oriental News Nigeria after a pain staking study  the progress and prospects of the financial inclusion policy in the country since inception in 2012.

“The conference is being organised given that the past couple of years , the federal government and stakeholders in the financial sector have had to deal with expanding financial services tp large community of underserved pupulation and dealing with resilience challenges brought about by confluence of events that have taken place”  Izuora stated.

Executive Director, Centre for Citizens with Disability (CCD) David O. Anyaele however  called on the federal government as well as the Central bank of Nigeria (CBN)  to expand the nation’s  financial inclusion policy to include provisioning for the disabled people in the society.

He bemoaned the sustained lack of considerations for the disabled in the Nigerian financial system through different kinds of neglect and rights denials.

Anyaele stated that audit of bank branches across the country showed the total absence or lack of  access and convenience facilities for the disabled.

He admonished prevailing attitudes of the financial systems against the disabled, describing it as major institutional barrier to financial inclusion.

The Federal Government’s plan to improve on foreign exchange (forex) earnings from crude oil will receive a boost as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) prepares to issue Petroleum Prospecting Licences (PPLs) to winners of the 2020 marginal oil field bid. The move is expected to raise government’s revenue earnings from oil and boost investors’ confidence in the domestic economy, writes COLLINS NWEZE.

Oil has for long remained the mainstay of the country’s economy. The liquid gold does not only account for over 80 per cent of its foreign exchange (forex) earnings, but represents a new hope for sustainable revenue flow into the economy.

Achieving these goals requires that oil sector policies, including the concluded 2020 marginal oilfield bid round, should be effectively implemented.

Already, the Central Bank of Nigeria (CBN)’s economic report showed that the Federal Government earnings from oil sales stood at N945 billion in January, this year.

Revenue from petroleum profit tax and royalties stood at N247 billion within the period.

Also, the government’s aggregate expenditure dropped by 9.9 per cent to N951.14 billion, from N1,055.50 billion last December.

On the balance of risks, there is optimism about growth, while inflationary pressures are expected to decelerate on the back of continued strong policy support as well as commitment towards sustaining growth recovery and the safety and stability of the financial system.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) believes that achieving these milestones would require strict adherence to the rules guiding approvals and issuance of licences in the upstream sector of the oil and gas industry in the implementation of the marginal oilfield bid round.

The NUPRC is preparing to issue Petroleum Prospecting Licences (PPLs) in line with its commitment to due diligence and accountability, which stakeholders believe, are key in enhancing Nigeria’s forex earnings.

With the high prices of crude oil, which arose from the ongoing Russia-Ukraine war, the Federal Government is expected to increase oil reserves and daily production.

Expectedly, the government would want production to commence in the 57 marginal oil fields won last year by 161 companies in the 2020 marginal oil field bid round. The bid started in June 2020 and by May, last year, 161 companies were shortlisted as winners of the 57 marginal fields, which spanned onshore, swamp and shallow-water.

Some of the winners in the exercise  were Matrix Energy, AA Rano, Andova Plc, Duport Midstream, Genesis Technical, Twin Summit, Bono Energy, Deep Offshore Integrated, Oodua Oil, MRS and Petrogas.

Others included Metropole, Pioneer Global, North Oils and Gas, Pierport, Shepherd Hill, Akata, NIPCO, Aida, YY Connect, Accord Oil, Pathway Oil, Tempo Oil and Virgin Forest.

The defunct Department of Petroleum Resources (DPR) had put the total value of the 57 marginal oil fields at over $500 million.

However, early this year, the successor agency to the DPR, the NUPRC, stated that 80 per cent of the awardees had paid while about 90 per cent of them had formed their Special Purpose Vehicles (SPVs).

The commission had also said the marginal oil fields awarded to 33 companies had been revoked, following their inability to meet the 45-day deadline to pay the signature bonus for the fields.

According to NUPRC Chief Executive Officer (CEO), Gbenga Komolafe, the commission is targeting this month for marginal field awardees to begin their Field Development Plan (FDP).

Komolafe explained that the plan includes processes required to develop a field.

He noted that over 600 companies had applied to be pre-qualified for the bid rounds of the 57 marginal fields. On the first successful bid programme which was completed by the defunct DPR last May, but was hindered by bureaucratic challenges, thus ensuring that actual drilling for oil did not  take off well over a year after the awardees were handed award certificates, Komolafe said although the NUPRC inherited a complex situation, it would resolve the issues by the first half of this year.

He said: “It’s critical because one of our cardinal objectives is to ensure that we increase the national oil production, and of course, we realise that the fields will help in enhancing that.

“We took the issue frontally. It’s really been very challenging to handle the issue in the sense that the model used poses serious challenges to bringing the matter to an end quickly.

“But I want to assure Nigerians and indeed the awardees that we have been able to bring the issue to a manageable state and devise a strategy for bringing the challenge to a close.”

He said there had been over 80 per cent compliance in payment.

“In fact, one of the challenges we’ve had is that of forming the SPVs. They are still having challenges working together because of the nature of the model used,” the NUPRC CEO added.

“But, by and large, I want to say that, as a commission, we will learn from this experience, and I want to assure Nigerians that the next marginal bid will not be bogged by the challenges we experienced in managing the fallout of the 2020 marginal field.

“Before the first half of the year, we want to see a situation where some of the awardees will be proceeding to the field development plan.

“At the moment again, we have recorded close to 90 per cent of the co-awardees forming their SPV, and at that stage, it is the very comfortable stage when the commission can go ahead to issue Petroleum Prospecting Licences (PPLs).”

About two months ago, NUPRC had said it would invite eligible reserve bidders for the 2020 marginal field bid round programme.

Domestic Crude Oil Market Developments

The CBN’s report confirmed that the Russia-Ukraine war led to further rise in crude oil prices at the international market and resulted in higher export receipts.

According to the apex bank, provisional data show that in January, the total value of crude oil and gas export increased by 16.1 per cent to $4.29 billion, compared with $3.69 billion last December. A disaggregation shows that crude oil export receipts increased by 17.9 per cent to $3.81 billion, relative to $3.23 billion last December.

The increase was driven, majorly, by the rise in the price of the country’s reference crude, the Bonny Light, by 16.2 per cent to an average of $87.07pb, relative to $74.95pb in the same period.

Similarly, gas export receipts, increased by 3.6 per cent to $0.48 billion, compared with the value last December, due to higher gas prices, particularly in Europe, following increased demand for energy during the winter period. Crude oil and gas export constituted 88.1 per cent of total exports, with oil accounting for 78.2 per cent and gas export 9.9 per cent.

Domestic crude oil production and export increased due to the lifting of the force majeure declared in the previous month. Nigeria’s crude oil production rose to 1.46 million barrels per day (mbpd), an increase of 3.5 per cent, from 1.41 mbpd in the preceding month.

Of the 1.46 mbpd produced in January, this year, exports accounted for an average of 1.01 mbpd, while the allocation for domestic consumption was 0.45 mbpd.

The increase in crude oil production and export was due to the lifting of a force majeure declared by Shell on the Forcados crude stream last December, when a malfunctioning barge obstructed a tanker path.

Also, on the global commodity market, total world crude oil production increased as OPEC+ supply rose in line with the continued implementation of production agreement. Global crude oil supply increased by 0.8 per cent to 99.10 million barrels per day (mbpd) from 98.27 mbpd last December.

Stakeholders expectations from NUPRC

According to Komolafe, NUPRC would ensure that law and due process were followed in the award of licences to operators, stating that under his leadership, no marginal field operator would be allowed to ‘trade’ in papers issued by the organisation.

He stated that the rule of law would be strictly followed in the issuance of final licences to the winners, stating that no amount of pressure would make the commission award final documents without due process.

He further said: “It is better you have a regulator that abides by the rule of law than to have a genius as a regulator. If you have a judge in court and he decides to rule on the basis of his ingenuity, then, it becomes a ground for appeal.

‘’If you have such a judge, he is a problem judge; he would be abusing discretion. I am going to ensure that our rules and processes give effect to the law. Awards of acreages will be carried out on the basis of fairness, transparency and competitiveness.”

He acknowledged that some of the companies that had fully paid their bonuses were insisting that they could not raise funds without collecting the licences.

However, at a conference in Lagos, Komolafe pointed out that the Petroleum Industry Act (PIA) has provided a safety net for financiers to provide funds for the development of oil and gas, as the marginal field operators could leverage this to raise funds for their operations.

He said the PIA under Section 95 (5) has also made provisions for this. The provision states: “Holders of licence or lease by way of security, to assign, pledge, and mortgage its interest, in whole or in part, under the applicable licence or lease provided the consent of the commission is obtained.”

Represented by the commission’s Head of Basinal Assessment and Lease Administration, Edu Iyang,  Komolafe listed the various options open to the marginal field operators and investors to raise funds for marginal field development as “private equity, capital market, strategic alliance and debt financing”.

The NUPRC chief noted that the commission was improving due diligence protocols to enable investors and operators access information prior to taking investment decisions and encouraging synergies in the use of shared facilities.

He stated further that the commission was also developing regulations to enable ease of implementation of the PIA, saying efforts were being made with stakeholders to tackle insecurity in the oil and gas sector.

Komolafe said the commission had delineated the marginal fields’ areas and engaged awardees to resolve issues arising from the 2020 marginal field award as well as concluded drafting of model license document, which is critical for issuing PPL to awardees.

Conclusion

Industry watchers believe that the tough stance of the NUPRC leadership to ensure that transparency and the rule of law in the oil and gas industry will play a key role in boosting oil reserves and production.

Nigerian Cleantech entrepreneur Sandra Chukwudozie has appeared on the eighth Forbes’ 30 Under 30 lists  alongside Elsa Majimbo and others.

According to Forbes Africa, “celebrating its eighth edition, the list this year features the best and the brightest, but importantly, the most resilient, who have taken the time to not only shine a light on the issues plaguing Africa’s growth in a pandemic era but also work towards shifting the narrative, one tiny, tenacious step at a time”.

Some notable names include the founder/Chief Executive Officer (CEO), Salpha Energy Sandra Chukwudozie, Kenyan comedian, author, and social media star Elsa Majimbo, Nigerian designer, CEO, TIMABEE INC Fatima Babakura, and founder/film producer Dammy Twitch.

Chukwudozie stated: “It is wonderful to see that Forbes Africa is recognising the diligence and devotion of the youths who are making a difference in their countries and on the continent as a whole. We need more empowering stories like this to assist with changing the story about the African continent.”

Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC, has continued to partner stakeholders in the health sector to offer quality healthcare.

Chief Executive, Stanbic IBTC Bank PLC, Wole Adeniyi, pointed out that aside taking part in various strategic partnerships with healthcare providers, the organisation has contributed over N10.2 billion to boost the sector.

According to Adeniyi, Stanbic IBTC Bank has contributed to the healthcare sector in several ways, including through the CBN Healthcare Sector Loan.

Last year, he added, out of the N10.2 billion, the bank offered N6.7 billion loan for the construction of Baze University Private Teaching Hospital in Abuja, and created a N2 billion Special Fund for health care providers to buy equipment and improve health care delivery.

Adeniyi noted that Stanbic IBTC Bank recently partnered ISN Medical to offer interest-free loans of up to N1.5 billion to clinics, medical laboratories, diagnostic centres, and other healthcare providers to procure medical diagnostic and healthcare products.

He stressed that through collaborations with various stakeholders in the health sector, Nigerians would continue to have easy access to quality healthcare.

On the ISN partnership, Adeniyi said: “We are happy to be part of this partnership. We believe that there are several benefits that both parties can derive from this collaboration. The loan facilities will go a long way in enabling healthcare providers to have access to up to N1.5 billion in medical equipment finance. We believe that our goal of enabling healthcare providers easy access to finance is achievable, especially through ISN Medical, a foremost supplier of medical diagnostic products and services in the country.”

The Coca-Cola System, comprising Coca-Cola Nigeria and its bottling partner, Nigerian Bottling Company (NBC), has stepped up efforts to boost its Safe Birth Initiative (SBI).

Director, Public Affairs, Communications, and Sustainability, Coca-Cola Nigeria, Nwamaka Onyemelukwe, at the weekend in Port Harcourt, explained that SBI aims to reduce the high rate of deaths during childbirth.

SBI delivers equipment and human capacity building to health institutions across Nigeria to bridge the shortfall in the state-of-the-art medical equipment and a dearth of skilled manpower.

Onyemelukwe pointed out that kicking off this year’s initiative in Port Harcourt was heartwarming because of the memories evoked by impact stories that have followed the SBI programme launch in 2018.

She said: “We are starting this year’s Safe Birth Initiative at the University of Port Harcourt Teaching Hospital (UPTH). The SBI would still reach out to more health institutions within the year. But what makes today especially happy for me is that the Coca-Cola System is able to meet the specific equipment.’’

Vice Chancellor, University of Port Harcourt, Prof. Owunari Georgwill expressed joy at the timely intervention of the Coca-Cola System in the healthcare sector. He said the top-notch equipment would impact beyond the UPTH and assured that those entrusted would make the most of it.

He said: “Let me thank the donors, Coca-Cola Nigeria. I understand that the equipment are cutting-edge technology that will aid solution to complex medical conditions. I am certain that this will impact the whole of Niger Delta region.”

Employees of Wema Bank Plc have donated a borehole to Eko Akete Grammar School, Lagos.

The project was executed as part of the Salary-for-Love initiative, a yearly programme when Wema Bank staff donate their one-day basic salary for community impact projects.

Since the initiative commenced in 2018, over 80,000 people in various communities have benefited from it.

This year’s theme was ‘Education and Entrepreneurship’ aimed at  reducing moral decadence among youths.

The Head Office/ALAT Team donated the facility to Eko Akete Grammar School in line with the Sustainable Development Goals – Good Health & Well-being, Quality Education, and Clean Water and Sanitation (SDG 3, 4 & 6).

The Head, Corporate Sustainability, and Responsibility, Wema Bank Plc, Mrs. Abimbola Agbejule, said the gesture was one way of giving back to the society as part of the recovery efforts from the COVID-19 pandemic.

The Head, Branch Service Coordination, Wema Bank Plc and Lead Champion of the project, Oluwole Esomojumi, added that the provision of clean water would ensure public hygiene.

He explained that the school was selected due to its need and that of the surrounding community

The Principal of the school, Iyun Oladunjoye, said: “This borehole is meeting us at our point of need as students and staff of Eko Akete Grammar School. Access to clean water is essential for good health and well-being; it also contributes to the green ambience and fishery project of the school.”

Citibank Nigeria Limited (Citi) has extended N4 billion  financing to Babban Gona Farmer Services Nigeria Limited (Babban Gona) to support input credit and harvest advance to smallholder farmers in the North.

The transaction will enable 41,000 smallholder farmers to increase their farming income by 350 per cent/hectare, hence contributing to improved economic opportunity in fragile communities.

Babban Gona is an award-winning agrotech firm, which specialises in the provision of end-to-end value chain services to smallholder farmers, including inputs, credit, advisory and off take across Nigeria.

Founded in 2012, Babban Gona aims at sustaining farming communities and creating jobs in agriculture for young farmers by enabling one million smallholder farmers, mainly in the North, to augment their  income by 2025.

Since inception, the company has  supported over 280,000 smallholder farmers and provided them with nearly $200 million in loans. It has grown to become the single largest maize producing entity in Africa, farming over 170,000 acres of land this season, providing enough food to feed every man, woman and child in Nigeria for nearly two weeks.

Managing Director/co-founder , Babban Gona, Kola Masha said: “Babban Gona aims to be the highest impact organisation on the agricultural landscape in Africa by supporting our members to generate enough income to improve their livelihoods, education, nutrition, and health.

‘’With the support of our partners, like Citibank, Babban Gona has  made farming more profitable for tens of thousands of smallholders across Nigeria where we have improved their net income and agricultural productivity to two times the national average.”

SoKlin and Paris Saint-Germain unveiled last Friday an exclusive regional partnership in West Africa.

This is a three-year partnership covering the West African countries of Nigeria, Ghana, Senegal, Ivory Coast, and Mali.

SoKlin, a Wings Group brand, is a leading premium detergent in sub-Saharan countries. Since its introduction to the continent in 1995, the detergent is noted for its high quality.

Paris Saint-Germain boasts more than 21 million African fans on social media, which represents 13 per cent of its community, including two million in Nigeria,

It has 853,000 people  in the Ivory Coast and 800,000 in Senegal. As the European club that has played most often in Africa in recent years, the Parisian Club is also expanding across Africa.

“It is a real pleasure for me to come back to my home country to announce the collaboration between my beloved club, Paris Saint-Germain, and the SoKlin brand, for this regional partnership in West Africa,” said Jay-Jay Okocha, a former Paris Saint-Germain player. “Paris Saint-Germain is very popular in this region, especially in Nigeria. I hope this partnership will further strengthen the bond between Paris Saint-Germain and its Nigerian fans.”

“We are delighted about this new partnership with SoKlin, a brand that is winning in its home ground in Indonesia and also very successful in Africa”, added Sébastien Wasels, Managing Director at Paris Saint-Germain Asia Pacific.

“This perseverance and the desire to grow are both values that Paris Saint-Germain holds dear, and we are delighted to embark on this new adventure with SoKlin.”