Category: Money

Development Investment Bank, DLM Capital, has received the final approval of the Central Bank of Nigeria (CBN) to acquire Links Microfinance Bank (MfB).

This, experts say, will solidify the group’s much-awaited digital banking.

This development also transitions the DLB as one of the few players in its industry that has expanded into a financial institution providing  various services.

Group Chief Executive Officer (CEO/Managing Director, DLM Capital Group, Sonnie Ayere, said: “We sincerely thank the SEC and  Central Bank of Nigeria (CBN) for the consent and final approval of our MFB acquisition. This will help to position us more as a full-fledged financial services institution which will develop and disseminate various financial products and services that will reach millions of Nigerians who are underserved. We are looking forward to working with stakeholders, including the CBN, and to expand financial inclusion to meet the ever-evolving needs of the average Nigerian.”

Managing Director/CEO, Links MfB, Funsho Idowu also said the bank is positioned to carve a niche for itself in the market, having joined the unique group of digital banks to create loans, investment opportunities, support job creation and empower MSMEs through access to its financial services, as  spelt out in the bank’s mission statement.

“This deal, with our NDIC insurance, will demonstrate to our customers that they can trust us with their financial needs,” he added.

DLM Capital Group comprises  subsidiaries in investment banking, trustees, securities trading, forex, digital banking, asset management, nominees, and corporate lending.

Quickteller Business, powered by Interswitch, has introduced Smart Point of Sales (PoS) terminals, which will enable Small and Medium Business Enterprises (SMEs) and merchants in Africa to accept payments seamlessly and better manage their transactions.

The Smart PoS device is backed by Android Operating System and equipped with a high-voltage battery for long-lasting performance. The device has been integrated with software that enables users to carry out multiple functions as well as accept a wide range of payments, including card, electronic transfers, QR code, Verve Paycode and USSD.

With the cutting-edge features on the smart device, businesses can accept major international cards, access business reporting tools, online and in-store storefronts, manage transaction disputes on their devices and enjoy uninterrupted network availability.

The combined use of the intelligent payment tool and the Quickteller Business platform saves time for business owners and allows them to focus on growing revenue while delivering exceptional service to their customers.

Olawale Akanbi, the Group Head, Quickteller Marketing, Interswitch Group, described the Smart PoS as a business infrastructure that serves as a backbone for enterprises, equipping them with tools for market expansion.

He said: “Our commitment to enabling businesses to remain competitive in the market inspired the introduction of Smart POS terminals that offer more features than before. The terminal is an all-in-one solution for business owners to enjoy the luxury of safe, easy and fast sales.

“As digital payments accelerate, we will continue to help enterprises better navigate the challenges around payments, inventory, sales records,   and other business operations.”

Akanbi reiterated Quickteller’s commitment to enabling businesses scale their services across Africa using the right technology that offers unified payment and business analytics.

The launch of Smart PoS provides opportunities for small businesses to experience fast and easy payment coupled with financial tools on one device only.

Existing and new merchants can benefit from this game-changing payment device by signing up for their Smart PoS device.

As a leader in payments technology in Africa, Interswitch’s dedication to developing world-class technology to make payments faster, safer and more dependable is unwavering.

Familyhood Foundation, a non-governmental organisation (NGO), committed to the protection of children against destructive and unhealthy sexual influences and behaviours, has called for partnerships and funding support from governments and corporate organisations to reach more target members of the society with its advocacy programmes.

Speaking during an advocacy programme for students held in Maryland, Lagos, Chief Executive Officer,   Familyhood Foundation, Adanilola Paul, said the foundation was committed to ensuring that one million Nigerian children and one million Nigerian parents are empowered and equipped with the basic knowledge and understanding of child sex education , child sexual abuse and its prevention on annual basis. Carrying out such task, he said would require funding support and partnerships with governments, financial institutions, manufacturers, and other real sector operators.

He said the group has members and volunteers in several states of the federation, and will continue to expand.

“We have members and volunteers in other states because our activities are both online and offline. So in online, many people have joined and volunteered,” he said.

He said the group plans to carry out its advocacy programmes in more states across the country to enable it  reach more students and parents with its programmes.

“What is is holding us back now is just the finance. We have human capacity, and we train our people to do sensitisation and counseling of children and parents on among other programmes,”Paul said .

“If a child is abused in a family, that child has to be taken out of that family, otherwise the abuse will continue. At risk children also need to be taken out of that environment to save lives,” he said.

Director of Guidance and Counseling Unit, Education District II, Maryland, Lagos, Olori Kalejaye, said  Familyhood Foundation brought very vital topic to the students, who took their time to ensure that students understand the topic.

It is about what the students should know and guide them to the right path. We need to tell them the truth, that is why many victims are not coming out to talk about sexual violence.

She said: “The perpetrators always tell the victims lies. If you tell anybody, you will die. If you tell your mummy you had sex, you will die. We need to tell them that nobody will die for telling the truth”

“We are also telling the students being sexually abused  is not the end. We have numbers that are toll free, sexual violence victims or targets can call, when they are in any danger. If they need help, Lagos State will help them,” she said.

She added: “Most perpetrators take time to build fake trust. It is also not easy for a child to disclose what happened to him or her. But parents also need to carefully observe behavioral changes in their children that suggest they are likely being sexually abused”.

She advised parents to have time for their children, and not feel disturbed or bored when they ask questions. “Parents should be very close to their children, so that they can give them information, as much as possible,” she advised.

Paul added that there are cases where gils are raped, and the perpetrators make video of the sexual act to blackmail the victims.

He said: “Victims like this need more than advocacy. That is why we work in conjunction with other agencies,  provide medical and psychological evaluation report on children and other victims, as well support police investigation. The investigation can also require forensic examination and counseling of victims.

International advocacy organisation, Global Citizen, has called on governments, corporations and citizens to break the cycle of extreme poverty.

The group has also  launched a new campaign aimed at addressing the issue of poverty now. The year-long campaign, called End Extreme Poverty Now – Our Future Can’t Wait, will focus on three critical issues:  empowering adolescent girls across the world; breaking systemic barriers that keep people trapped in poverty; and taking climate action now.

Supported by the Deputy Secretary-General of the United Nations Amina Mohammed, President of the Republic of South Africa Cyril Ramaphosa, President of Ghana Nana Akufo-Addo, President of the Republic of Zambia Hakainde Hichilema, Foreign Minister of Nigeria Geoffrey Onyeama, Minister of Environment of Rwanda Dr. Jeanne d’Arc Mujawamariya, Former Executive Director of UN Women Dr. Phumzile Mlambo-Ngcuka, and presidents of nations around the world, the campaign will feature a calendar of major global events. These will include the presentation of the Global Citizen Prize, the Global Citizen NOW Leadership Summit; the 10th Anniversary Global Citizen Concert in both New York and Africa, and the Global Citizen G20 Summit, which will be held in Bali, Indonesia.

“We join Global Citizen in continuing our stewardship to ensure a better world and future for all,” said President Ramaphosa in announcing his support for the campaign. “The past two years have highlighted the devastating impact on humanity when we choose individual goals over the global good. Together, we have to take concrete actions that will create a better future for our planet and its people, now.”

South Africa’s Tshepo Mahloele will serve as the patron of the campaign in Africa and will serve alongside Sandiaga Uno, Indonesia’s Minister of Tourism and Creative Economy.

Mahloele is the Chairman and Founder of Lebashe Investment Group, a leading African Investment company focused on Financial Services & TMT industries. He is also the Founder of Harith General Partners. Harith General Partners is the leading Pan-African investor and developer of infrastructure across the continent.

“I am honoured and humbled to play a meaningful role that supports existing global efforts to deal with vaccine equity, challenge poverty and empower young girls. The neglect of these predicaments, including global warming, have a detrimental effect on the prospects of the citizens of Africa and this situation cannot be allowed to continue unabated. It is about time these matters are brought back on the global agenda. I am happy that the Global Citizen movement has reignited the debate about such critical matters and that it is continuing to keep Africa top of mind.” Tshepo Mahloele, Chairman and Founder of Lebashe Investment Group.

“For Ghana, ensuring that we end poverty, empower young girls and protect the planet is of utmost importance. This is why we are joining Global Citizen in their 2022 campaign efforts together as one voice and as one community. There is no better time than Now.” President of Ghana Nana Akufo-Addo. “Zambia is ready to collaborate with the global community on critical deliverables that will ensure we effectively address several socio-economic challenges in order to lift citizens out of extreme poverty. We are especially encouraged by Global Citizen’s sense of urgency in this campaign, and we extend our willingness to support these efforts.” President of the Republic of Zambia Hakainde Hichilema

“It is alarming to learn that even during the Covid pandemic, the very rich have been getting richer and the very poor, poorer. This is untenable and a threat to the future of mankind. Global Citizen is right, we must be our brothers’ keepers. We must act right now!” Foreign Minister of Nigeria Geoffrey Onyeama.

“We are excited to be supporting Global Citizen in its campaigning efforts this year especially on climate change. Rwanda has placed green growth at the center of creating sustainable jobs, improving communities’ livelihoods and enhancing climate resilience across the board, and Global Citizen is an important channel for people to effect positive change. Its advocacy role can also raise global awareness to act on the challenges that Rwanda and other developing nations face because of climate change.” Minister of Environment of Rwanda Dr. Jeanne d’Arc Mujawamariya

Throughout 2022, Global Citizen will also rally millions of citizens to demand that the world’s top political and business leaders stop delaying action with longer-term timelines and focus on what we need to do here and now.

“The global agenda to end extreme poverty, defend the planet and tackle inequity is in peril. And despite progress in a few countries before COVID-19 hit, the world was and continues to be wildly off-track from the 2030 target,” says Hugh Evans, CEO and Co-Founder of Global Citizen. “This moment of crisis demands new urgency and a renewal of purpose. We need a new compact built on mutual trust and respect – one that lifts up the voices of the people whose lives depend on its success and who suffer from its failure. An agenda built by and with them, to a timeframe set by those who understand all too well that every lost minute is a whole new tragedy.”

The ripple effect of the COVID-19 pandemic triggered not only a public health crisis, but also a social, economic, and climate crisis. These combined crises have wiped out all gains made since the Global Goals were adopted in 2015, with the World Bank estimating that nearly 100 million more people have been pushed into extreme poverty. The past two years have also shown that the world is unwilling to deliver both on its promise to end extreme poverty, and to protect the progress made over the last two decades. There was no meaningful progress from world leaders in 2021, despite numerous opportunities at the G7, G20, and COP26 meetings.

Stanbic IBTC Holdings Plc has restated its commitment to developing sustainable impact in the global creative industry and contribute to the growth and advancement of the Nigerian creative industry. This will be achieved through world-class products, value-driven opportunities, and partnerships.

The financial institution supports key stakeholders in the creative space through growth-oriented solutions and opportunities such as funding, visibility, partnerships, sponsorships, and collaborations that had alleviated some of the challenges the industry faced. It explained that its commitment to the sector stemmed from the creative industry’s potential in tackling unemployment in Nigeria through job creation.

Stanbic IBTC in partnership with entertainment industry players, established cinemas with advanced infrastructure. This is a testament to the organisation’s commitment to support the creative industry.

Also, in line with the Central Bank of Nigeria (CBN)-led Creative Industry Financing Initiative, its banking subsidiary continued to set aside five per cent of its profit after tax to lend to the creative sector players at a subsidised interest rate. As such, individuals in the creative space have benefitted from flexible funding at low-interest rates that helped to drive the growth of the creative industry.

Chief Executive, Stanbic IBTC Holdings Plc, Demola Sogunle said that, “The creative industry is filled with many brilliant young talents who are endowed with great potentials and Stanbic IBTC believes that if nurtured and harnessed strategically, the creative sector would make significant contributions to the Nigerian economy in enhancing competitiveness, productivity, substantial growth, and employment opportunities.”

Demola revealed that Stanbic IBTC has also supported initiatives like ‘The Entertainment Fair and Festival conference’ (TEFEST); an event targeted at fostering and showcasing world-class innovation around the entertainment business in Africa, and proffering solutions on improving the business relations of the industry.

Furthermore, to drive Nigeria’s creative advancement, Stanbic IBTC sponsored Art X and thus propelled awareness of the artistry and creativity of Nigerians to the world. The event positively impacted the economy as it provided talents with the opportunity to tell African stories through their arts and display their works to interested clients. The financial institution also gave room for students across various schools in Nigeria to be part of the experience, thereby exposing them to the artistic world and motivating them to harness their talents and skills.

Stanbic IBTC has continued to advance the growth of the country’s creative industry by connecting with and supporting players in the sector through its events and initiatives.  Thus, the leading end-to-end financial services provider has reaffirmed its position to be at the forefront of redefining the creative sector by providing solutions that promote advancement.

Heirs Insurance Limited (HIL), the digital general insurance company, has demonstrated its commitment to gender inclusion with the launch of its motor insurance plan for women, Her Motor Plan.

Prioritising safety, the plan offers to its subscribers 24-hour road rescue and vehicle repair services, as well as access to an exclusive community of likeminded businesswomen.

The launch held yesterday at the Heirs Insurance headquarters, Heirs Towers, and pulled female business icons from all walks of life to celebrate the drive and enthusiasm of all women. Guests included the 44th Miss Nigeria, Shatu Garko-brand ambassador for Heirs Insurance-Lanre Da Silva, celebrated fashion designer; Nkiru Anumudu, Nigerian businesswoman, and many others.

Her Motor Insurance Plan is an affordable, yet holistic comprehensive motor insurance plan offering coverage and support involving the mechanical breakdown of vehicles. It provides all-day protection and coverage for vehicles against road accidents, theft, or fire. Other benefits include towing service, free vehicle tracker and medical support in the case of an accident.

The launch of this plan not only reinforces the company’s efforts towards improving lives in Nigeria by promoting gender inclusion, but it also demonstrates its commitment towards democratising insurance through the availability of value- adding insurance products that are simple to understand and accessible.

According to the Managing Director, Heirs Insurance, Dr. Adaobi Nwakuche, the product is the outcome of the extensive research the company conducted to understand the lapses in the industry prior to the kick-off of operations.

She stressed the importance of inclusion for women in the quest to deepen insurance penetration and she expressed confidence in the new product championing this cause.

She said: “Women face several challenges at work, home and generally in the society yet they stand strong. This is what we are celebrating with Her Motor Insurance Plan. We believe that the drive of women should not be hindered by the challenges they face. Through this launch, we emphasize our commitment to making insurance accessible to everyone. Our message to all women is simple: keep driving, keep moving”.

The Chief Marketing Officer, Heirs Insurance, Ifesinachi Okpagu, during her welcome remark, noted that the product further emphasises the company’s overall ambition of creating products that offer value and make better the lives of customers.

In her words, “As a company, we remain committed to providing excellent service to the insuring public, based on research and insight. We will continue to provide service that is simple, quick, and accessible. Anyone can access this plan via our website and other digital channels in 2 minutes”.

Heirs Insurance continues to transform insurance in Nigeria by providing simple, quick, reliable, and accessible protection plans to individuals and businesses. Heirs Insurance underwrites all classes of General Insurance Business for properties including vehicles, buildings, oil & gas, power, utilities risks, among others. A subsidiary of the pan-African investment company, Heirs Holdings, Heirs Insurance is on a mission to drive financial inclusion and make insurance accessible to everyone.

Interswitch’s eClat Healthcare Limited, an innovative health-tech solutions provider and a subsidiary of the Interswitch Group, has announced the relaunch of eClinic, a healthcare product that will effectively address challenges associated with medical records management and boost industry revenue.

eClinic is a specially designed patient-focused healthcare service product that transforms the familiar analogue system of record keeping to a digitalized process, where patients’ records are kept secure and easily accessible.

The eClinic platform centralises all records of patients, ensuring their data is within reach of health workers, opening avenues for swift analysis, efficiency, and thoroughness of healthcare professionals in the country.

Speaking on the relaunch of eClinic, Wallace Ogufere, Chief Executive Officer, Interswitch eClat, said that the introduction of the improved health-tech solution to healthcare system in Nigeria, would facilitate efficiency and enhance the trust between patients and their healthcare providers, as patients are guaranteed of their safety and the safety of their medical records.

Wallace said: “The infusion of technology into the healthcare system in Nigeria is one that will certainly increase efficiency, save costs and entrust trust between patients and their healthcare providers. Ultimately, this is the goal of eClinic, among other benefits.

As a flexible tool, eClinic was created to serve a range of healthcare providers, from small, single care providers to multi-specialist facilities, making it a well-rounded platform tailored to the varying needs of healthcare providers, and complementing existing systems.

The solution was designed with three layers of care providers in mind: the eClinicPHC, which was designed for primary care providers, and the eClinicPlus, designed for secondary and tertiary care institutions, reducing cost for health service providers and retaining data integrity and security.

With the relaunch, the eClinic solutions have new features integrated into it, such as inventory and stock keeping, patient appointment and queue management, medical and insurance billing, assets management, integration to third-party systems via API, quick messaging and notification, medical coding, backup and multi-location support, among others, patients are assured of an improved healthcare delivery process when they walk into their preferred care provider for health-related matters.

“Our focus revolves around the provision of value to both the demand and supply sides of health care-institutions that provide healthcare services and patients who seek these services. Through eClinic, we are integrating inventory keeping, efficient service delivery, sales and accounts receivables into one platform. By doing so, service delivery process is streamlined, and productivity is boosted.”

eClinic was developed with specialised modules that function at various clinical levels such as antenatal and immunisation, aggregating data from different centres and providing a single front for enterprise capabilities.

The business environment is tough. Though several factors such as high inflation, forex scarcity, and the Russian-Ukraine war are making things worse for businesses, the managers are restrategising to remain afloat and competitive, writes COLLINS NWEZE.

The tough business environment in Nigeria is of major concern to real sector operators.

Analysts predict that with the development,  the few smallscale businesses trying to stay afloat, having not fully recovered from the effects of the COVID-19 pandemic-fuelled recession, might be contemplating winding down, unless something drastic is done.

Many posit that this might also pose a security risk, considering the critical role and contributions of the micro, small, and medium enterprises (MSMEs) sector to the economy.

Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, said SMEs contributed over 50 per cent to Nigeria’s Gross Domestic Product (GDP), and accounted for over 80 per cent of its employment.

Nigeria’s macro-economic ecosystem, in the aftermath of the pandemic, appears to be on the recovery path. Thankfully, low numbers are being recorded by the Nigeria Centre for Disease Control (NCDC). The effect of the pandemic’s disruption on families, small businesses, artisans, and other vulnerable Nigerians is dire, with many  losing their sources of livelihood.

Though the National Bureau of Statistics (NBS) indicated in its fourth quarter of last year’s Gross Domestic Product (GDP) report released in February, this year, that the GDP grew by 3.4 per cent, the strongest since 2014, headline inflation has continued to rally within the double digits’ region, with prices of commodities skyrocketing.

Unemployment continues to rise despite the number of graduates being churned out yearly across higher institutions.

The average citizen’s disposable income has been reducing. This is compounded by Foreign Exchange (Forex) scarcity and stability concerns which have seen some businesses either close shop or scale-down.

With the attendant effect of COVID-19, as well as economic and socio-political developments disrupting the way of life, businesses have had to adapt their strategies to fast-changing realities to stay afloat. Similar to most other companies, Coca-Cola Nigeria Limited, the leading  beverage company in the country, is not immune to the limitations posed by the hard-hitting economic situation, as the last two years has proved a challenge for all.

The food and beverages industry is one of the more-mature industries across the globe and has undergone changes regarding product innovations and offerings.

To face the market challenges, companies are bringing new flavours onboard, keeping in mind the health and wellness concerns of consumers, a reason the market is bursting with various flavours introduced by new entrants.

Managing Director, Coca-Cola Nigeria, Alfred Olajide, attributed the country’s poor economic performance, over the past 24 months, to several factors which left the country to make certain important decisions.

Part of the decisions by the beverage leader is the expansion of its supply and capacity to meet the demand by consumers, while also reinforcing its brands with consumer-focused activities like Coke with Meals; Fanta with Snacks; Sprite with anything Spicy; Juices and water for nutrition and hydration; and its premium brand, Schweppes for socialising occasions.

Olajide said: ”With inflation comes an increased cost of production and living, and this is not within our control. However, with our foresight, we anticipated these developments and created more value-based SKUs. Over the years, we have developed smaller packaging for our product variants to cater to consumers with lower purchasing power.”

Over the past six years, Olajide said they had introducted brands with aggressive strategies disrupting the market and presenting numerous options for Nigerians. Some of these strategies include new product launches to cater to the evolving tastes of consumers such as Schweppes Ginger and Zobo, 5 Alive Pulpy Lemon and Mango, and product reformations to provide superior taste to consumers like Coca-Cola Zero Sugar, being touted as the best coke ever with a challenge for people to try it first and not just take the slogan at face value.

“Consumers want brands that support them and their struggles; brands that understand them; brands that genuinely want to make a difference in their lives, and this is what we have always represented and will continue to do,’’ he added.

Olajide believes that the development has made the company better, as they reinvent themselves to remain competitive and lead the market.

The impact of the Coca-Cola brand on the country is evident for all to see – from employing thousands of Nigerians, to creating shared opportunities in various communities through various sustainability initiatives that has empowered and created sources of income to millions of Nigerians. Coca-Cola has been at the forefront of corporate support for the development of football in Nigeria.

This is evidenced by the huge funds committed to Copa-Coca-Cola Under-15 Secondary School National Football Competition, which culminated into scholarships for players of winning schools as well as sponsoring the best players to international soccer camps.

“Coca-Cola believes that football is a platform that unites people all over the world. Football is, particularly,  loved by consumers; that is why the arrival of the FIFA World Cup™ Trophy Tour will be an opportunity to stir emotions for the coming FIFA World Cup™ Competition and  relive the past World Cup™ moments,” he said.

Courtesy of Coca-Cola, football lovers will have the opportunity of close contact with the authentic iconic FIFA World Cup™, if the Super Eagles qualify. “This is one of those ‘only Coke can do’ campaigns to help foster optimism and unity, while making a positive difference in the communities we serve,” Olajide added.

He explained that the brand will continue to identify opportunities to make products that consumers love, more affordable despite the difficult macro-economic and operating environment, support the events and activities their consumers love and launch innovative products that appeal to the tastes of its consumers.

“There will also be a heightened advocacy and engagement drive in shaping fair regulatory framework, taking into consideration the disruptive realities of the operating environment for the ultimate benefit of our consumers,” he said.

Coca-Cola’s story in Nigeria, according to him, is typified by hard work, innovation, and steadfastness, as it is a story of inevitability which is why Coca-Cola is famed for its ubiquity and pedigree of being available up to the last mile.

 

Online Trading in Nigeria continues to record an upward trajectory amongst young people who are majorly under 35 years of age.

Thanks to this era of digitization & increasing mobile data penetration, where you can sit in the comfort of your room and equip yourself with information and knowledge, and start trading with just a click of your finger.

Many young Nigerians are now turning to their internet-enabled smartphones to take active roles in the global financial markets. A sizeable number of the youth are incessantly trading financial instruments online such as stocks, forex, cryptocurrencies and commodities.

Statistics show that there are now over 1.8 million online retail traders in Africa and trading volumes continue to increase with South Africa, Nigeria, and Kenya taking the lead.

Online trading in Nigeria has led to a phenomenal increase in local trading technology and online platforms. As a result of growth in online trading, lots of new trading and investing Apps have launched in Nigeria which offer you the opportunity to invest in the markets.

However, despite the impressive improvements in online trading, there have been deep concerns about various risks and frauds associated with investing and trading which new beginners need to understand and watch out for.

New traders and Investors need to be equipped with some information about the capital market before putting their hard-earned money into it so that they would not lose their money ignorantly or become victims of scams.

There are some things you should embrace and there are some things to avoid.

 

#1 Educate Yourself

The need to get yourself some degree of education about a particular trading Instrument is the most important step before you decide to start committing your money to Investment.

First and foremost, you need to have a proper understanding of what you want to do and how you are going to do it. You can talk to people who have had considerable online trading experience and from their perspective, you can pick some things from their wealth of experience.

You should read articles relating to online Investment and listen to relevant business news to get yourself updated on the trading Instrument that is of interest to you.

Also, learn about the differences between investing & trading, and make your informed decision whether you want to trade or be an investor.

Learn as much as you can about the risks of each investment, get into the fundamental details, learn about the markets, accounting & other stuff that will have to pick the right investment.

 

#2 Only trade with money you can afford to lose

One important factor that Nigerian traders should know is that it is very wise and advisable to trade only with funds they can mentally afford to lose.

Adhering to this trading principle is one of the principles of money management. Many online traders and investors who have invested above their purse limit ended up blaming themselves.

You should note that risking more than your threshold per trade is an act of greediness which may make a trader quickly lose all his money and make him become bankrupt and frustrated.

If you want to survive in the growing online trading market in Nigeria, you need to determine the amount per trade that you are willing to lose & you also need to determine your initial trading capital that you are willing to risk.

For instance, if you determine that your risk per trade is N10, 000, and if you lose that money, then don’t put more money again until you understand the reasons for your losses, and how you can correct it.

A trader should know that it is not wise to trade if can cannot get at least 1:2 risk to reward per trade.

You should ask yourself how you will feel if you invest with all your money and it results to zero, will you be okay? Just imagine how you will feel if all the money you have budgeted for basic needs like house rent, children’s school fees and so on disappears in a trade.

 

#3 Know the Risks of the Instruments You Are Trading

As you start to commit your money to online trading or investing, you should have it in mind that risks are inherent in online Investment. Even the experienced traders lose money.

There have been lots of situations where brilliant analysis of the markets did not produce the desired results as planned.

For instance, the Covid-19 pandemic caused massive volatility in the financial markets such as stock, commodity and currency markets. It was reported that lots of investors and traders lost hefty amounts of money due to this, some even recorded alarming loss of millions of Naira in one day.

In order to minimize your loss, every trader and investor should understand the risks of the instruments and markets they are investing in before committing their funds. It is also advisable to use risk management strategies like stop loss orders.

It will also be very wise of you to test your investment strategy while demo trading before using your real money to trade. You should know about risk to reward ratio (RR ratio).

A good RR ratio stands at 1:2 or more and when RR ratio is 1:2, a trader risks his money for at least 2 times return.

Long term investment in the markets instead of trading and diversification of your portfolio can also go a long way in reducing your risk.

 

#4 Avoid Margin Trading

Generally, a trader or investor uses the money available to him to make investments. This is called spot trading. However, there are some cases where the investor or trader borrows money from his brokerage firm to engage in an investment; this is called margin trading or buying on margin.

Have it in your mind that the returns on margin trading could be good, but the risks are extremely high. Remember, Margin is the money you borrow.

Margin trading is an extremely risky strategy, especially for a new trader. You should know that unregulated margin trades were one of the main causes of the stock market crash of 1929 in the United States. Also, CFD traders using leverage in Australia lost millions during March 2020, during the Covid-19 market crash as per ASIC, which prompted them to put restrictions on leverage that CFD brokers can offer to retail traders.

Research by Safe Forex Brokers Nigeria has found that many CFD & forex brokers that accept clients from Nigeria require margin of only 0.1% for forex trading, and this requirement is even lower at some brokers. This means that these brokers are offering 1:1000 or higher leverage which is very risky for retail traders. Many retail traders in Nigeria use very high leverage in order to magnify their profits, but this only results in loss of initial capital.

One major risk in margin trading is that you don’t know with any certainty if the instrument you use the loan for will yield the desired profit. Even the most experienced and intelligent traders in some cases make a poor analysis of the market, which means that the risks associated with margin trading are indeed massive.

For instance, if the value of a trader’s Investment declines, he may be required to deposit additional capital to cover his margin. In fact, there is a possibility that you lose more money than your initial investment when you buy on margin.

Also note that if your account equity isn’t high enough to maintain your position, your broker may resort to liquidating your trading positions if you are not complying with the loan agreements.

 

#5 Don’t Give Room for Gamification in trading

One important fact you need to understand as a trader or investor is that brokers are naturally selfish. They will always encourage you to trade more because doing so will be to their own advantage as regards with making money.

A broker will make more money from commission when you trade more on its platform. So, there is an incentive for the broker to encourage you to trade more, so they can make more money in trading fees from you.

There are some situations where many retail traders are tempted to make some particular trades that are not the best for their portfolio and trading plans.

If you want to be a successful trader, it is vital to draw out your own plans and strictly adhere to them. Sticking to your goals will help you ignore unnecessary temptations that can jeopardize your position.

 

#6 Beware of Scammers

Many inexperienced traders in Nigeria have had a raw deal from the hands investment schemes aimed at deceiving individuals into giving their money to fraudsters. The scammers often do this by luring unsuspected traders in the name of Instruments like Forex, cryptocurrency, stocks and so on.

One essential feature that will make you detect them easily is that they promise huge, impossible, or unrealistic profits like 100%-500% per month or per day.

All those systems are just Ponzi or Pyramid schemes.

Note that they may pay the initial depositors so as to lure more people to come in. Along the way, the investment will collapse and you will not be able to trace the promoters.

Access Bank Plc has released its 2021 full-year financial result, which revealed a profit after tax of N160 billion, representing 51.13 per cent increase year-on-year. The bank’s e-banking income rose to N66.28 billion, representing a 18 per cent spike from N56.09 billion in 2020. The upbeat in its e-banking income showed that the bank leveraged its e-banking channels in the delivery of financial services to its customers and was adequately compensated with improved earnings from the platforms. COLLINS NWEZE writes.

There are three key factors that have played significant roles in the performance of most financial institutions.

First is the level of investment made on technology, followed by quality customer services and the quality of management.

For Access Bank Plc, the three factors played out positively in its 2021 full year results released to the Nigeria Exchange (NGX).

The bank has shown a profit after tax of N160 billion in its full year results for the period ended December 31, 2021, representing 51.13 per cent increase year-on-year. The bank also reported earnings per share of N4.58, a 52.16 per cent growth from the N3.01, reported a year earlier in 2020.

Access Bank Plc has grown its profits by 167 per cent in four years since hitting N60 billion in 2017 with the profit now touching about N160 billion.

The statement revealed that in financial year 2021, net interest income grew by 14.64 per cent from N262.95 billion to N301.46 billion in the current period.

Access Bank’s profit performance is on the back of margin growth as income from interest, trading, fees and commission appreciated year on year.

The bank leveraged its investment in e-banking channels to achieve these milestone results.

Access Bank has over the years, leveraged technology, including advanced analytics, cloud computing, artificial intelligence, machine learning, and robotics process automation to reform business operations and drive performance to improve customer experience.

 

Analysing the results

 

Access Bank recorded gross earnings of N971.9 billion, representing an increase of 27 per cent over N764.7 billion posted in the financial year 2020.

The bank’s financial results showed that its Profit Before Tax (PBT) for the period rose by 40 per cent year-on-year, to N176.7 billion from N125.9 billion in 2020.

Access Bank grew its income from commission and fees rising 36.40 per cent to N159.18 billion year-on- year. It also generated a total of N166.10 billion in trading income on securities representing an impressive 423.35 per cent increase year-on-year.

The bank’s e-banking raked in N66.28 billion, representing a 18 per cent spike from N56.09 billion in 2020. This suggests that the bank has improved in its utilisation of the e-banking channels in the delivery of financial services to its customers.

In addition, the group also grew its deposits from customers by a whopping 24.47 per cent to N6.95 trillion while its total assets are  N11.73 trillion, more than twice the bank’s total assets in 2018.

The bank’s net assets rose 38.03 per cent to N1.03 trillion. Access Bank Plc last traded at N10.40 per share and its market capitalisation stands at N369.67 billion as of March 17, 2022. Year-to-date performance shows that the share price of the company has appreciated by 11.83 per cent.

Its Board of Directors have proposed a final dividend per share of N0.70 per share, to be paid on each of the 35,545,225,622 issued ordinary shares and payable to shareholders on the register of shareholding at the closure date.

The company had earlier paid an interim dividend of N0.30 kobo in September 2021, hence bringing the total dividend for the financial year to N1.00 kobo.

The proposed dividend will be subsequently subjected to withholding tax at the time of payment. Based on its share price, Access Bank Plc’s dividend yield is about 9.62 per cent.

Its gross earnings rose by 27 per cent to to N971.9 billion in 2021 from N764.7 billion reported in 2020, with interest and non-interest income contributing 62 per cent and  38per cent.

Customer Deposits totalled N7 trillion in 2021 from N5.6 trillion in 2020, while net loans and advances totalled at N4.4 trillion in 2021 from N3.6 trillion reported in 2020.

The Chief Executive Officer, Access Bank, Herbert Wigwe in a statement said:” Our diversified business model yielded positive sustainable results, guided by a robust risk management framework, as we grew the business cautiously and recorded sound prudential ratios.

“This year’s results reinforce our resolve to generate sustainable returns despite challenging market conditions. The group achieved a 27 per cent year-on-year growth in gross earnings to N971.9 billion, leading to an improvement in the Profit After Tax to N160.2 billion.

“Consequently, our Return on Average Equity (ROAE) stood at 17.8 per cent, tracking in line with our commitment to stakeholders. We sustained robust capital and liquidity positions, well above regulatory levels with a Basel II Capital Adequacy Ratio of 24.5 per cent and a Liquidity Ratio of 51 per cent.

“This positions the bank to support our customers across various markets and adequately execute our expansion strategy. To actualise our vision of becoming the world’s most respected African Bank and Africa’s Payment Gateway, we have taken strategic strides to create indelible footprints across the African continent.

“These include our most recent additions in South Africa, Botswana, and Guinea We also strengthened our business in Mozambique and Zambia, with noticeable improvement in rankings and market share.  In the year, we successfully issued the first Additional Tier 1 (AT1) Eurobond out of Nigeria.The $500 million instrument enhances our capital ratios and provides significant headroom for growth and the execution of our strategic objectives.

“We also issued a $500 million Senior Unsecured Eurobond during the period, elongating the duration of our FX balance sheet and strengthening our liquidity. 2022 is pivotal for our franchise, as we conclude our 2018 to 2022 corporate strategic plan. In the year, we will focus on a disciplined implementation of our strategy to drive efficiency and operational excellence across all segments, expand revenue and increase profitability, with enhanced focus on risk management practices and a disciplined cost containment structure.

“As we go into our next five-year strategy cycle, we are realigning the franchise for growth, by transitioning into a Holding Company (HoldCo). This will enable us to unlock and capture available non-banking opportunities in the market, that would lead to the diversification of our earnings, drive efficiency, and grow scale while maintaining our moderate risk management approach.

“Having met regulatory requirements and obtained the court sanction, we expect the HoldCo to become operational in the first half (H1) of 2022. This will lead to the delisting of Access Bank Plc’s shares on the Nigerian Exchange (NGX) and listing of Access HoldCo shares.”

 

Access Closa Agents empowered

 

Access Bank’s commitment to delivering services to at least one in every two Nigerians has been reaffirmed as it inaugurated and empowered 100,000 Access Closa Agents to provide more than banking services to existing and new customers across the nation.

The product’s inauguration aligns with the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele’s  policy, who urged banks to bring banking closer to the people.

With the number of Access Closa Agents spread across the 774 local government areas in the country, the bank has significantly grown access to finance and banking services to millions of previously un(der) banked Nigerians, while providing alternate streams of income for MSMEs, promoting financial literacy, and also advancing its ambition to bank one in every two Nigerians by 2025.

According to Executive Director, Retail Banking, Access Bank Plc, Victor Etuokwu, the exponential growth of the bank’s agent network was in fulfilment of the its promise to ensure easier and safer access to financial services for every Nigerian.

“As a bank driven by innovation, we must deliver better outcomes for customers in terms of speed, security, and service to enhance customer experience in all the locations that we operate.

“With the recent achievement of hitting a 100,000 milestone of Access Closa Agents, customers and non-customers of the bank who are travelling for business, events, or to visit loved ones in any location in Nigeria will continue to enjoy uninterrupted banking services as our Closa agents are available in several rural and semi-urban locations across the country.”

Reiterating Etuokwu’s statement, Robert Giles, Senior Advisor, Retail Banking, Access Bank Plc said: “The Access Closa network is a bespoke channel through which the bank expresses her passion and commitment to broadening the opportunities and access to financial services for every Nigerian and African, irrespective of the location they might be.

“Customers can locate a Closa agent near them by simply searching for ‘Access Closa Agent’  on Google Maps on their phone instead of walking long distances in search of a branch.

“With over 100,000 agent locations spread across every neighbourhood in the country, we are making sure our customers and potential customers enjoy seamless banking close to where they live and work, in a safe and convenient manner. By offering basic financial services such as account opening, cash withdrawal, cash deposit, and bill payments.

“Our continuously growing agent network is increasingly making the need to visit a bank branch unnecessary for everyone. We are committed to being at the forefront of providing digital financial services in Nigeria,” Rob added.

 

Expansion to new markets

 

Access Bank said it will consolidate its operations in Mozambique into one financial services unit, and hope that gaining new grounds will add bigger value to miles already covered after acquiring another banking asset in the Southern African nation.

The bank wants its business outside Nigeria to make 30 per cent of the group’s profit  and gaining in the southern end of the continent seems crucial to that goal, with three more acquisitions in Zambia, South  Africa and Botswana.

An already cluttered market in its base, Nigeria, is pushing the country’s biggest bank by asset to seek growth in the rest of Africa at a time when the coronavirus crisis has grievously deteriorated credit quality and lenders still battle the headwinds of last year’s record crash in the prices of oil on earnings. Oil and gas contributes the bulk of the credit base of the banks.

With the Mozambican takeover, the bank’s combined assets from a proposed merger between Access Bank Mozambique S.A and the new acquisition will make it the seventh largest bank in the country.

“We are building the scale necessary to compete effectively and efficiently in key African markets outside Nigeria and ensure we sustainably deliver strong return on invested capital in our African expansion.

“Scale is an important contributor to returns and this transaction is consistent with our rigorous efforts to create to create a strong presence with scale across Africa,” Wigwe added.

But pursuing scale at all cost could be sometimes counter-productive and misjudging the competition in the market where a company is planning expansion is one of the gravest mistakes of mergers and takeover deals.