The appointment of Oladunni, who is chairman of the Lagos State Chapter of the Sports Writers Association of Nigeria (SWAN) is coming a few months after she was elected Public Relations Officer of the Association of Certified Protocol Practitioners in Nigeria.
The appointment letter dated 19 March 2024 and signed by Prof. Toks Onabanjo, Chairman of the Board of Directors, Pan African American Chamber of Commerce reads: “Office of the Ambassador and Permanent Representative of Pan-African American Chamber of Commerce (West Africa) is glad to announce the appointment of Olatutu OLADUNNI, as the Special Adviser on Foreign Relations and Head of Protocol.
“She is expected to act effectively within the capacity of her position to initiate and establish a productive synergy and valuable partnership between PAACC and West African nations, members of the diplomatic community, Diaspora Commission, Commerce and Trade Organisations and Institutions accredited to West Africa etc.”
Oladunni was also aide to the Chairman Sabré West Africa and Central Africa Region on Foreign Relations/Protocol.
Nigeria’s ambition to reach a $1 trillion economy hinges on a robust and resilient financial system. Banks play a critical role in this system, acting as the backbone for channeling funds from savers to businesses and individuals who fuel economic activity. However, a healthy banking sector requires well-capitalised institutions that can withstand internal and external shocks. This perhaps explains why the Central Bank of Nigeria has once again set a target for the banks to inject fresh funds into the system. In this report, Assistant Editor Nduka Chiejina examines the issues
●CBN headquarters, Abuja
The Nigerian banking sector plays a pivotal role in the nation’s economic growth and development. Banks act as the backbone, facilitating financial intermediation – channeling funds from savers to borrowers who can invest and contribute to economic activity. However, a healthy banking system hinges on its robustness and resilience to withstand internal and external shocks. In recent times, concerns have been raised about the adequacy of capital held by Nigerian banks. This has reignited discussions on bank recapitalization as a critical strategy to bolster the health and stability of the financial system.
Bank capital refers to the financial cushion a bank maintains to absorb potential losses and continue operating as a going concern. It acts as a safety net, protecting depositors’ funds and ensuring the bank’s solvency. There are two main types of capital: Tier 1 Capital (Core Capital). This is the highest quality and most critical form of capital. It consists of equity capital (common stock and retained earnings) and disclosed reserves. Tier 1 capital acts as a primary buffer against losses, absorbing unexpected financial strains before depositors’ funds are at risk.
Tier 2 Capital (Supplementary Capital). This tier provides a secondary layer of protection and includes instruments such as perpetual preference shares and subordinated debt. While considered less loss-absorbent than Tier 1 capital, Tier 2 capital can still play a significant role in supporting a bank’s overall capital adequacy.
The Rationale for Recapitalisation
There are several compelling reasons why bank recapitalisation is a necessary step to strengthen the Nigerian banking sector:
A higher capital base allows banks to absorb unexpected losses without jeopardizing their solvency. This is particularly important in the face of economic downturns, credit defaults, or unforeseen market fluctuations. Stronger capital buffers prevent a domino effect where a single bank failure can trigger a broader financial crisis.
Adequate capital allows banks to lend more confidently, knowing they have a larger buffer to absorb potential loan losses. This translates to increased credit availability for businesses and individuals, fueling economic activity and investment. A well-capitalised banking system inspires greater public confidence. Depositors are more likely to entrust their savings to banks knowing their funds are well-protected. This fosters financial stability and encourages long-term investment.
Stronger capital adequacy ratios are increasingly becoming a global benchmark for sound banking practices. Nigerian banks with higher capital levels will be better positioned to compete with international financial institutions and attract foreign investment. The Central Bank of Nigeria (CBN) has set minimum capital adequacy ratios (CARs) for banks operating in the country.
Recapitalisation ensures banks meet these regulatory requirements, promoting a level playing field and a safer financial environment.
The Nigerian banking sector has witnessed significant growth in recent years. However, concerns persist about the adequacy of capital held by some banks. The 2008 global financial crisis exposed vulnerabilities in the system, highlighting the need for stronger capital buffers.
The CBN, recognising these vulnerabilities, has taken proactive steps. In 2014, the CBN introduced a “Vision 20:2020” programme aimed at transforming Nigeria into one of the 20 largest economies globally by 2020. A key component of this vision was strengthening the banking sector through increased capital requirements. Similarly, the recent announcement of a recapitalisation programme for Nigerian banks underscores the CBN’s commitment to a more robust financial system.
Why the CBN Excluded Retained Earnings in Nigerian Bank Recapitalisation
The Central Bank of Nigeria’s (CBN) decision to exclude retained earnings from Tier 1 capital during the ongoing bank recapitalisation exercise has sparked discussions within the financial sector. While official CBN pronouncements haven’t explicitly elaborated on this exclusion, here are some insights into the rationale behind such a move:
Tier 1 capital, consisting primarily of equity capital (common stock) and disclosed reserves, represents the highest quality capital. Equity acts as the first line of defense against losses, as it can be entirely written down before depositors’ funds are impacted. By excluding retained earnings, the CBN might be aiming to ensure a stronger core capital base that can absorb significant losses without jeopardizing bank solvency.
Retained earnings, while technically part of equity, can be influenced by a bank’s profit distribution policies. Dividends paid to shareholders reduce retained earnings. The CBN might be concerned that allowing retained earnings to contribute to Tier 1 capital could incentivize excessive dividend payouts, thereby diluting the core equity base.
Accounting practices and historical profitability can significantly influence the level of retained earnings reported by a bank. The CBN might be concerned about potential manipulation of accounting practices to inflate retained earnings figures. Excluding them from Tier 1 capital would necessitate fresh injections of equity from shareholders, promoting greater transparency and a more accurate picture of a bank’s core capital strength.
By excluding retained earnings, the CBN might be sending a strong signal to banks and investors that a significant capital injection is necessary. This fresh capital injection, likely in the form of new shares issued by the banks, would directly strengthen the core equity base and demonstrate a renewed commitment from shareholders to the bank’s long-term health. A recapitalisation exercise funded primarily by retained earnings might not inspire significant confidence among new investors. Fresh capital injections can attract new shareholders and bolster overall investor confidence in the Nigerian banking sector.
On the flip side, excluding retained earnings can limit the amount of capital banks can allocate towards dividends in the short term. This could negatively impact shareholder returns. Smaller banks with limited access to fresh capital might struggle to meet the new requirements. This could lead to consolidation within the sector, potentially reducing competition.
However, the CBN’s decision to exclude retained earnings from Tier 1 capital reflects their focus on building a more resilient banking system. While there might be short-term implications for profitability and potential consolidation, a stronger core capital base ultimately benefits the entire financial sector by fostering stability, public confidence, and long-term growth. Recapitalisation, when implemented thoughtfully and strategically, is a powerful tool to strengthen the Nigerian banking sector. By increasing capital buffers, banks will be better equipped to weather the storms.
The CBN in reviewing the minimum capital requirements for banks stated that “For existing banks, Commercial banks with: International Authorisation N500 billion; National Authorisation N200 billion; Regional Authorisation N50 billion; Merchant banks, National Authorisation N50 billion; Non-Interest with National Authorisation N20 billion and Regional Authorisation N10 billion, the capital requirements specified above shall be paid-in capital (Paid-up plus Share Premium) only. Bonus issues, other reserves and Additional Tier 1 (AT1 Capital shall not be allowed or recognised for the purpose of meeting the new minimum capital requirements.”
The CBN’s directive that only “paid-in capital (Paid-up plus Share Premium)” will be considered for meeting the new minimum capital requirements reinforces the emphasis on high-quality core capital (Tier 1). This type of capital, unlike retained earnings or bonus issues, represents fresh equity injections from shareholders. Since retained earnings can be influenced by dividend payouts, potentially diluting the core equity base, by excluding bonus issues and other reserves, the CBN directly addresses this concern and ensures a stronger core capital position for banks.
The CBN’s exclusion of “other reserves” further aligns with the potential concern of manipulation of accounting practices. Other reserves can encompass a wide range of items, and their inclusion could potentially lead to inflated capital figures. By focusing solely on paid-up capital, the CBN promotes greater transparency and a more accurate picture of a bank’s core capital strength.
The requirement of fresh capital injections through paid-up shares sends a clear message to shareholders and investors. Banks will need to demonstrate a renewed commitment to the long-term health of the institution by raising fresh equity. This focus on new capital can attract new investors and bolster overall investor confidence in the Nigerian banking sector, a key factor for long-term growth.
Capital Adequacy Ratio (CAR):
The CBN emphasised that while “paid-in capital (Paid-up plus Share Premium)” is the primary focus for meeting minimum requirements, “relevant reserves” will still be considered when calculating the risk-based capital adequacy ratio (CAR). By continuing to consider relevant reserves in CAR calculations, the CBN acknowledges the importance of a comprehensive risk management framework. Reserves can act as buffers against specific risks a bank might face.
The Capital Adequacy Ratio (CAR) plays a crucial role in the ongoing bank recapitalisation exercise in Nigeria, acting as a vital metric for assessing a bank’s financial health and risk management capabilities.
Here’s how it fits into the bigger picture: CAR is a key regulatory ratio that measures a bank’s capital adequacy in relation to its risk-weighted assets. It essentially indicates the amount of capital a bank has available to absorb potential losses before its solvency is jeopardized.
The CBN’s focus on core capital (equity) during recapitalization directly impacts CAR calculations. By requiring banks to raise fresh capital through paid-in shares, the CBN is aiming to increase their core equity base (Tier 1 capital). This directly strengthens a bank’s CAR, as Tier 1 capital carries the highest weight in CAR calculations. A higher CAR signifies a better buffer against potential losses. This allows banks to take on calculated risks associated with lending activities without jeopardizing their financial stability.
The CBN also said it “assessed various factors in determining the appropriate level of the minimum capital requirements. These include: Risk profile of banks; Global and domestic headwinds and their potential impact on banks’ balance sheets; Impact of inflation; and Stress tests of banks’ balance sheets, to gauge their resilience to absorb current and unexpected shocks.”
By assessing the individual risk profile of each bank, the CBN can set targeted capital requirements. Banks with higher risk profiles, due to factors like loan types or exposure to volatile markets, will need to raise more capital to ensure they have adequate buffers. Higher capital requirements for riskier activities can incentivize banks to adopt more prudent lending practices, ultimately contributing to a more stable financial system.
Anticipating potential challenges like economic downturns or global financial crises allows the CBN to set capital requirements high enough to withstand such headwinds. This ensures banks have sufficient resources to absorb potential losses and maintain solvency. By requiring banks to raise capital now, the CBN is proactively strengthening the banking system’s resilience before external shocks occur.
Inflation erodes the purchasing power of money. Higher capital requirements help to account for inflation, ensuring banks maintain an adequate real capital base to absorb losses and support lending activities. By raising capital through recapitalisation, banks can maintain a stronger capital buffer even in inflationary environments, promoting long-term stability.
Stress tests simulate various economic scenarios and assess how banks would perform under stress. This helps the CBN identify potential weaknesses in individual banks’ capital positions. The results of stress tests can be used to determine which banks require the most significant capital injections during recapitalisation. This ensures resources are allocated strategically to address the most pressing vulnerabilities.
By considering these factors, the CBN has set minimum capital requirements that are tailored to the specific risks and challenges faced by the Nigerian banking sector. The proposed recapitalisation efforts, focusing on raising core capital, directly address these identified needs.
A successful recapitalisation exercise, based on a comprehensive assessment of risks and vulnerabilities, will lead to banks with stronger capital buffers and will be better equipped to weather economic storms and unexpected shocks. A more robust banking system fosters greater public confidence in the safety and security of deposits. Recapitalisation can promote a more stable financial environment, attracting investment and supporting long-term economic growth.
CBN Provides Options for Banks to Meet Recapitalisation Requirements
The circular on the reviewed minimum capital requirements for banks, stated that “Banks may meet the new requirement through the following options: Issuance of new common shares (by way of public offer, rights issues, or private placements); Mergers and Acquisitions (M&As); or upgrade/downgrade of their respective license category or authorisation.
“The CBN will issue guidelines to prescribe the definition, options and approaches to meeting the new minimum capital requirement. The CBN will actively monitor and supervise the recapitalisation process to ensure compliance with set guidelines. This will involve the conduct of on- and off-site reviews, verification of capital, periodic interventions when necessary and broader stakeholder engagements.”
The CBN offered banks three primary methods to achieve the required capital levels: Issuing New Common Shares. This allows banks to raise fresh capital directly from investors through various methods like Public Offers, this involves selling shares to the general public on the Nigerian Stock Exchange (NSE). Rights Issues, in which case existing shareholders are offered the right to purchase additional shares at a pre-determined price. Private Placements, shares are sold directly to a select group of institutional investors.
Mergers and Acquisitions (M&As). This approach allows smaller banks to consolidate with stronger institutions, achieving the required capital base through combined resources. With regards to License Up/Downgrade, banks can adjust their license category (national, regional) based on their new capital position. This option might be suitable for banks that strategically decide to operate with a smaller footprint.
Experts’ opinions
Professor Uche Uwaleke of the Nasarawa State University said, “recapitalisation of banks is justified by the erosion of the Capital base of banks due to huge depreciation of the naira over the years.”
He also stated that “the exclusion of retained earnings is meant to ensure a very high quality of minimum capital requirement for banks given the nature of their operations. This is why the CBN is emphasising fresh capital injection since some proportion of retained earnings may have been impaired by losses.
“Nevertheless, in order to make it a lot easier for banks to meet the minimum requirements within the two years deadline, the CBN should allow the inclusion of retained earnings on the condition that they are unimpaired by losses.”
Mr Gbolade Idakolo, Managing Director/CEO SD&D Capital Management Limited said “the exclusion of retained earnings or shareholders’ funds as additional Tier 1 capital shows the CBN wants to distinguish fresh funds from existing funds which could be subject to regulatory infractions because shareholders’ funds is not a statutory capital base. CBN also wants to be able to trace the legitimacy of funds for the recapitalisation process by banks.”
He added that the recapitalisation of banks in categories is long overdue and advocated for the expansion of our economy. “The Tier 1 banks operating internationally have already envisaged this process and have started making provisions early enough. Nigeria has the highest GDP in Africa and for us to maintain that position and also operate a trillion dollar economy then the banks must be adequately capitalised.
“A trillion dollar economy must have local capacity to initiate and execute million dollar transactions locally without foreign intervention in key areas of development like oil and gas, steel production, mining, mega construction projects and Public Private Partnerships with the government.
“This can only materialise if we have adequately capitalised banks that can rise to the occasion. Nigerian banks also need to take their pride of place in Africa as regards capitalisation because presently Nigerian banks are not among the most capitalised in Africa.
“Therefore, this new recapitalisation policy will adequately position our banks for the emerging economy that will adequately equip them to take on large ticket transactions in Nigeria and African continent,” he stated.
Recapitalisation, when implemented thoughtfully and strategically, is a powerful tool to strengthen the Nigerian banking sector. By increasing capital buffers, banks will be better equipped to navigate economic cycles and support the nation’s ambitious growth targets. A robust and resilient banking system is a cornerstone for a thriving $1 trillion Nigerian economy.
The 2024 World Health Day celebration themed ‘My health, my right,’ focuses on the critical importance of good food and nutrition, particularly in regions like Central and West Africa.
Nutrition is the foundation of human health, influencing every aspect of physical, cognitive, and emotional well-being. In these regions, where socio-economic gaps, environmental challenges, and diverse cultural norms converge, the importance of good nutrition becomes even more pronounced.
That is why multinationals like Nestlé are championing affordable and good nutrition for families through its brands while ensuring the sustainable sourcing of raw materials such as coffee, cocoa, soya among other ingredients in its supply chain.
“Nestlé reaffirms its commitment to promoting quality and affordable nutrition, particularly in Central and West Africa. We believe that access to balanced diets, rich in essential nutrients, is vital for maintaining optimal health and well-being. Together, we strive for a future where everyone has access to nutritious diets, ensuring not only physical health but also fostering local communities and prosperous societies,” says Mauricio Alarcón, CEO Nestlé Central and West Africa.
Likewise, in Central and West Africa, numerous health challenges persist, ranging from enduring malnutrition to the rising incidence of diet-related non-communicable diseases. These nutritional deficiencies not only hinder physical growth and development but also weaken immune function, cognitive abilities, and overall disease resilience.
Essential nutrients found in a balanced diet, including vitamins, minerals, proteins, carbohydrates, and fats, are the building blocks of health. Ensuring adequate nutrition during critical life stages, such as pregnancy, infancy, and early childhood, is vital for optimal growth, development, and long-term health outcomes.
Also, in recent years, Africa has seen an increase in the rate of non-communicable diseases such as diabetes, cardiovascular disease, high blood pressure, and obesity. This rise mirrors global trends but is amplified by unique regional dynamics. While infectious diseases remain significant, lifestyle factors, like diet and physical activity, drive much of this burden.
A balanced diet is paramount in promoting overall health and preventing chronic diseases. A balanced diet encompasses a diverse range of nutrient-rich foods from all food groups, including fruits, vegetables, whole grains, lean proteins, and healthy fats. This dietary approach not only supports physical well-being but also aids in weight management and reduces the risk of obesity and associated health issues.
Empowering communities through education on nutrition is a powerful tool in the fight against malnutrition. Providing knowledge about healthy eating habits and balanced diets through initiatives in schools, community centers, and healthcare facilities can help dispel myths and empower people to make informed dietary choices.
Some companies, like Nestlé, recognises the importance of nutrition and quality in their product offerings. For instance, Nestle’s R & D centre in Cote d’voire employs scientists and food technologists dedicated to developing affordable nutrition solutions for the region. They consider local dietary preferences and nutritional needs, integrating regionally sourced cereals and plant protein sources into formulations. These products are fortified with essential micronutrients like iron, iodine, zinc, and other vitamins and minerals ensuring optimal nutritional value.
Additionally, these experts have access to Nestlé’s global network of experts, advanced analytical equipment, labs, and pilot plants across all company R&D locations.
Products like Maggi, widely recognized across the continent, are fortified with essential micronutrients such as iron and iodine, meeting local preferences while boosting nutritional intake. Likewise, Celerac, enriched with iron, and Nido, fortified with calcium, provide vital nutrients essential for children’s growth and development.
In Nigeria, the company recently introduced Nido & Soya, a product that integrates locally sourced soybeans. This initiative offers a budget-friendly option for nutritious consumption, while providing healthy nutrition among consumers.
The path to improved nutrition in Central and West Africa necessitates collaborative efforts across sectors and stakeholders.
Unorthodox medications such as the popular Agbo (local herbal mixture being served as a drink) have been identified as one of the major causes of the rising incidents of kidney failure in Nigeria.
Currently about 17million Nigerians have various stages of kidney disease. Prevalence of Cyclin-dependent kinases (CDKs) documented in developing and developed countries range from 2.5 percent to as high as 35.8percent in the elderly population.
Speaking recently in a public lecture in Lagos to mark the World Kidney Day, Dr. Ebun Bamgboye, Clinical Director at St. Nicholas Hospital warned that rather than cure or control the ailment that unorthodox medication if anything is more likely to aggravate the ailment.
“Science has proved that Agbo, herbal medications, supplements of different types rather add to a patients problems. There are people that would not take anything except herbal medications but I can tell you from the strength of being a practitioner who sees patients, that very often we have found that individuals who have used these herbal medications are the ones that end up with kidney failure,” he said.
“So if you already have diabetes or hypertension, your kidney is already failing and you cannot use unorthodox medications”. “Herbal supplement, Agbos, ginkgo, bilo, Echinacea etcetera, the reality is that medicine has said that none of them work. Do not use anything that is not prescribed by the doctor.”
Apart from herbal medications, Diabetes mellitus, Hypertension and glomerulonephritis were also fingered as other issues that can trigger kidney ailments. Speaking in the Public lecture with the theme ‘Kidney Health for All: Challenges to its actualisation in Nigeria’ organised by the Kidney Foundation for Africa, Dr. Bamgboye noted that government’s intervention can greatly impact positively to arrest the increasing spread of kidney ailments in Nigeria.
He called on the federal government to Enact Bill to encourage deceased donors. “Government should enact a Bill that will encourage people and the bereaved to donate their organs and those of their dead relatives in order to save lives and enhance the quality of lives of the living.”
He stated that the government needs to do more in order to assist the rising number of people with kidney ailments in the country.
Bamgboye regretted that many died with organs that can be used to save other people. “If those organs are utilised to save the lives of people with kidney failure, you will find that the number of people who eventually get transplants will be much more.
“The Bill is meant at the end of the day, to encourage an improvement in our statistics as regards kidney transplant because it would enable us to start disease donor or cadaveric kidney transplant,” he said.
Commending the Lagos state government he noted “there is a bill to that effect currently with the State House of Assembly. The hope is that they will accelerate its hearing and go ahead and enact the bill and hopefully pass it to the governor for consent.”
Mr. Clinton Peters, the President Kidney Foundation for Africa pointed out that Kidney disease was becoming an epidemic in Nigeria.
He said that the government should intervene by creating awareness, making accessibility to the drugs, dialysis possible. “Majority of the consumables used in treating and managing this ailment are imported. Government should give relief to pharmaceutical organisations involved in importing these expensive materials.”
He also advised people to stop using bleaching cream as it does not only cause cancer but also causes kidney failures. He appealed to organisations and well-meaning Nigerians to make donations towards alleviating the financial burdens of people with kidney challenges.
While corroborating what Bamgboye said, President of the Healthcare Federation of Nigeria, Dr. Pamela Ajayi, noted that there is still so much government needs to do in the health sector. “There should be no duty paid on life saving drugs. Currently, we are trying to push those concessions on healthcare goods so that the cost of treating kidney issues and other ailments will be reduced.”
She called for the enhancement of the health insurance schemes, access to consumables for kidney patients. “I mean access to drugs, Dialysis centers. More research should be done on this. For instance we have more incidence of kidney related issues in the northern part of Nigeria, we should find out why it is so.
“Government involvement must be much more to bring the incidence of kidney ailment low in Nigeria. Why should people pay duty on healthcare products? Whatever duty they pay transcends to the patients. The patients pay the duty when they buy drugs.”
“There are about 17million Nigerians in various stages of kidney failure,” lamented, Cynthia Ajah, MD, Edge Pharmaceuticals limited that specialises in the post treatment of patients that had received kidney transplant.”
Meanwhile the First Lady of Lagos State, Dr. Ibijoke Sanwo-Olu said that one of the challenges to actualisation of kidney health for all is lack of awareness. “The awareness aspect is critical as people must be made to come to terms with the fact that they are responsible for their health and wellbeing.”
The First Lady who was represented by Dr. Johnson said “since prevention is better than cure, we need to educate the people to embrace a healthy lifestyle. Much emphasis must also be made on reducing the risk factors which include diabetes, high blood pressure, smoking, and obesity.”
Commending the organisers of the programme, for their laudable work of creating the awareness of this disease and supporting post-transplant patients with the very expensive drugs, she called on all the stakeholders to support the government in its quest to improve the healthcare system.
Guaranty Trust Holding Company Plc (GTCO) on Friday announced plans to host the 7th edition of its flagship culinary festival in Africa, GTCO Food and Drink with proposed date slated to hold Friday, April 26th to Sunday, April 28th, at GTCentre, Plot 1 Water Corporation Drive, Oniru, Victoria Island, Lagos.
The GTCO Food and Drink Festival is widely recognised as the continent’s biggest food and drink festival, bringing together millions of food lovers and entrepreneurs to celebrate the rich and diverse culinary heritage of Africa with a vibrant display of flavours, aromas, and cultures. Over the three-day period, attendees can look forward to an array of culinary delights, from traditional African dishes to innovative fusion cuisines from other parts of the world.
Commenting on the 2024 GTCO Food and Drink Festival, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Segun Agbaje, said: “We are delighted to bring to our customers, exhibitors, and food lovers from across Africa and beyond, another edition of an event that is a celebration of not just food, but of the rich tapestry of cultures and traditions that make African cuisine so unique.
“Our vision for curating this consumer-focused event is unchanging, particularly in light of the pressures that individuals and businesses are facing at this time. We hope to consistently create memorable moments for everyone, whilst providing a free, vibrant, and commercially viable platform for small food businesses in Nigeria to grow and thrive.”
In addition to its culinary offerings, the GTCO Food and Drink Festival is renowned for its family-friendly atmosphere. This year, organisers have curated an extensive lineup of activities for children, ensuring that the festival is an unforgettable experience for the whole family. A specially designed play area will keep the little ones entertained with games, interactive exhibits, and more. As a new and exciting feature, the fair will introduce a children’s baking class, providing young aspiring chefs with a wonderful opportunity to discover the joys of baking, while also fostering creativity and confidence in the kitchen. From decorating cupcakes to crafting their own signature treats, children will unleash their culinary genius and develop valuable cooking skills in a fun and supportive environment.
GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, and the United Kingdom alongside new businesses in Payment, Funds Management, and Pension Fund Administration. The Group operates a diversified, Proudly African franchise and is renowned for its innovative approach to customer service and stakeholder engagement, which has endeared the brand to millions of people across Africa and beyond. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years. In 2023, GTCO’s Guaranty Trust Bank was recognised as Nigeria’s Best Bank and Best Bank in CSR at the Euromoney Awards for Excellence, Best Banking Group in Nigeria by World Finance, and Best Bank in Nigeria by Global Finance. Guaranty Trust Bank also featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker.
Building upon the success of its launch, Terra Gold Cube has unveiled its new “One Cube, Endless Possibilities” campaign to redefine the way consumers approach seasoning and flavouring their dishes. With a focus on quality, versatility, value for money, and natural flavours, the campaign invites consumers to unlock the limitless potential of Terra Gold Cube, one delicious meal at a time.
Through this campaign, the brand invites all consumers to embark on a voyage of taste, emotion, and discovery— providing a superior taste to their meals without going through the pain of choosing varieties of cubes, thereby unlocking a world of endless possibilities.
Terra Gold has a rich consistent taste that everyone craves for. Be it hearty vegetable stew, delicious soup, or the aromatic richness of Jollof rice, Terra Gold amplifies the natural flavours of your ingredients, accentuating their essence with finesse and precision.
As an experienced homemaker and fervent advocate for the art of flavorful cooking, Jane Benson shares her thoughts on the Terra Gold Cube’s campaign, “One Cube, Endless Possibilities.”
“As someone who spends a considerable amount of time in the kitchen, I have encountered my fair share of challenges when it comes to using seasoning cubes. The pain points have been the lack of versatility, quality, and of course, the value for money”.
“However, everything changed when I discovered Terra Gold Cube. I was finally able to use one cube for all types of meals. I was blown away by the complement in taste it added to my various dishes. Hence, I would recommend that you go for Gold for all your delicious meals. So, choose wisely, choose Gold.” she stated.
Probal Bhattacharya, Chief Marketing Officer, TGI Group, expressed confidence about Terra Gold having the potential to be the gold standard in seasoning cubes, that redefines the art of seasoning, one delicious dish at a time.
“With Terra Gold Cube, we are not just offering a seasoning option; we want to assure consumers that there is now no need to worry about making the right choice of seasoning cubes. Terra Gold is the definitive gold standard in seasoning cubes for providing that special taste across various Nigerian dishes and cuisines. As we look ahead, I am eager to see how Terra Gold becomes an integral part of kitchens around the country, inspiring individuals to experiment, innovate, and savour the endless possibilities that each Gold cube brings,” he said.
We started this discussion last week but due to space constraint promised to publish the concluding part in this edition.
Let us talk now about the art of responding to customer reviews like a professional. It’s not just about receiving those virtual pats on the back; it’s about showing your customers that you genuinely care. Whether a review is positive or negative, responding to customer reviews is a must. It is your chance to showcase your gratitude, address any concerns, and build stronger relationships.
When crafting your responses, follow a few simple guidelines. Be appropriate and professional, but do not be afraid to show your personality. Keep your response genuine and authentic, like a handwritten note from a friend.
But what about those negative reviews? Instead of avoiding them or engaging in a virtual shouting match, respond with empathy. Show your customers that you understand their frustration and genuinely want to make things right. Offer a solution, apologize if necessary, and take the conversation offline if needed.
The impact of responsive customer service is undeniable. When you take the time to acknowledge and address customer reviews, you are not just solving one person’s problem; you are demonstrating to all potential customers that you value their satisfaction. This builds trust, loyalty, and turns customers into enthusiastic brand advocates.
Seize the opportunity to respond to customer reviews with grace and care. It’s not just about managing your online presence; it’s about nurturing lasting relationships that can propel your business to new heights.
Customer reviews are a powerful marketing tool
Customer reviews are the lifeblood of small businesses, playing a pivotal role in their success. We have explored how customer reviews serve as social proof, building trust and credibility in the eyes of potential customers.
These reviews provide valuable insights for business improvement, fueling growth and innovation. By leveraging customer reviews in marketing campaigns, businesses can captivate and convert their audience with the power of authentic testimonials. Responding to customer reviews, both positive and negative, showcases excellent customer service and fosters loyalty. Small business owners must prioritise and actively seek customer reviews, recognising their significance as a powerful marketing tool.
9 Practical Ways to Make Your Customer Service More Proactive
Customer service isn’t just about fixing problems. Here’s how to offer proactive customer service to improve you…
As we look to the future, the role of customer reviews in shaping business success will only continue to evolve. Embracing the power of customer reviews and cultivating a strong online reputation will bring long-term benefits, paving the way for continued growth and customer satisfaction. Let the symphony of customer reviews guide your path, and watch your small business flourish in the ever-changing landscape of success.
How do positive reviews help a business?
Positive reviews are powerful in building credibility. They shape the perception of your business, painting a picture of excellence or mediocrity in the minds of potential customers.
How do you ask customers for reviews in a small business?
You shouldn’t overthink asking for reviews. One of my favorite ways to ask is right after a meeting in the office. This helps me communicate clearly and lets the client know I appreciate their business.
Do you need permission to use customer reviews?
When you receive positive feedback from a client, Always ask before sharing their experience with others. This comes from an agreement of trust between your clients, your team, and yourself.
Addressing Negative Reviews
Even if you forget everything we have been writing since last week about the essence of customer review, do not forget this, but what about those negative reviews? Instead of avoiding them or engaging in a virtual shouting match, respond with empathy. Show your customers that you understand their frustration and genuinely want to make things right. Offer a solution, apologize if necessary, and take the conversation offline if needed.
The federal government quest to create wealth and make jobs available to all has received a major boost.
This became self-evident last week with the flurry of activities at the nation’s foremost Federal Institute of Industrial Research Oshodi [FIIRO] as the Institute’s management led the Minister of Innovation, Science and Technology (IST) on a tour of its facility.
The Minister of IST, Chief Geoffrey Nnaji, who was on his first official visit to FIIRO, could not hide his surprise and elation at the vast opportunities and finished research works which he said if harnessed by business men, and commercialised will fetch Nigeria huge amounts of money.
The extensive tour took the Ministerial entourage through the FIIRO cassava pilot plant, the Institute’s pavilion which houses the proto type equipment, the imposing engineering building, the FIIRO Dome, where the Institute showcases all their products which have been concluded and ready for commercialisation. The tour ended with visits to the various laboratories.
Addressing the Media, the Director General FIIRO, Dr. Jummai Tutuwa said innovation and technology hold sway in issues of national development. She noted that the institute has been at the forefront of boosting innovative research on all the available raw materials in Nigeria, both agro-based and mineral excluding oil, which has yielded positive solutions.
Dr. Tutuwa said that the Institute has developed over 250 research and development technologies and has completely packaged over 100 of them ready for immediate transfer.
The amiable DG of FIIRO, disclosed that the food, beverage, pulp, paper, textile, cement, paint, soap and cosmetics as well as the engineering industry amongst others have benefitted immensely from the Institute’s research and development results.
“The Institute is spurring economic development through job creation and technology transfer and has trained over 500,000 techno-entrepreneurs on its various developed technologies”, said Tutuwa.
According to her, numerous entrepreneurs have established production enterprises based on the technologies acquired from the Institute, adding that millions of jobs have been created through direct and multiplier effects of these entrepreneurs.
Emphasizing on what he said before, the Minister Science and Technology said “We must produce, we must get people employed. We must commercialise the research we have. There are so many of these research products we have on the shelf that have not been touched. If Nigeria can concentrate on bringing out these research products, then Nigeria will change overnight”.
“I keep saying that to move this country forward we need innovation, science and technology. We are the focus of economic development, there are no two ways about it and that is why I keep praying that more money be allocated to places like FIIRO so that those researches can see the light of the day.”
Speaking about the FIIRO cassava pilot plant, he noted that with cassava alone that we can make fortunes in this country. “We have quality cassava machines here. Nigeria is the largest producer of cassava in the whole world. We produce 64 million metric tons per annum. With the strength we have now, H419, we will multiply it to 120 million metric tons and make a lot of money.
“From cassava, we can have feed for poultry, cows using cassava peels, then you can get on to getting starch, sorbitol, flour etcetera. We have to stop importing and look inwards,” he said.
Commending the DG FIIRO, the Minister described her as capable hands and said he has been discussing with her and that “part of our focus going forward will be to start doing pilot planting so that we have as many cassava, as many plants as possible so we can use the leaves, stem to make papers.”
“We are also using this opportunity to appeal to investors that go outside Nigeria to import machines, to look inwards as we have better, solid and durable machines that can last very long in FIIRO. We are inviting investors to come here and see what we have so as to commercialize most of these things,” appealed the Minister.
As part of efforts geared towards solving some environmental issues, ranging from laundry waste management to fabric care, energy conservation, efficiency amongst others,
LG Electronics, a global leader in home appliances, in collaboration with the Fabricare Professionals & Drycleaners Association (FPDA), is set to launch Nigeria’s first-ever Laundry Exhibition Show tagged “The Clean Africa Show”.
This event aims aims at revolutionising the laundry industry in Nigeria by showcasing the latest innovations, technologies and best practices in laundry care.
Speaking at a press conference organised to announce the exhibition in Lagos, recently, the organisers hinted that the two-day Clean Africa Show scheduled to take place May 28 and 29, 2024, at the Landmark Event Centre, Victoria Island, Lagos, will bring together industry professionals, entrepreneurs, policymakers and consumers to see the newest and most technologically advanced products the industry has to offer.
Through this collaboration, LG and FPDA aim to drive innovation, foster collaboration and promote sustainable practices within the laundry sector.
According to Mr. Hyoung Sub Ji, Managing Director, LG Electronics West African operations, “As a pioneer in home appliances and technology, LG Electronics is thrilled to partner with FPDA to introduce Nigeria’s inaugural Laundry Exhibition Show.”
“Exhibiting at The Clean Africa Show is a great way to draw attention to our new products and services, giving us the stage to create a memorable experience for key industry attendees, providing an opportunity to network with other industry professionals, gain visibility, and increase our brand recognition.”
He pointed out that the exhibition represents a significant milestone in LG’s commitment to empower consumers with innovative and sustainable laundry solutions, such as the LG Commercial Washing Machines, Heat pump Dryers, Top & Front Load Washers, and Air Conditioners designed to deliver superior performance with reduced energy consumption.
“By choosing LG, customers can enjoy high-performance appliances that contribute to a cleaner, greener future. Together with FPDA, we aim to elevate standards and drive positive change within the Nigerian laundry industry.”
This write-up was prompted by the current brouhaha occasioned in the social media between the supporters of Mrs. Chioma Okolie and those of Chief Eric Umeofia of Erisco Foods.
It would be recalled that Mrs. Okolie had given a negative review of Nagiko tomato paste and since then there has been a war between the reviewer and the manufacturer.
This report therefore hopes to show that even the occasional negative reviews can be transformed into a golden opportunity for growth. A well-handled negative review can showcase your commitment to customer satisfaction and highlight your ability to turn frowns upside down.
In a world where everyone seems to have an opinion (and a smartphone to share it), customer reviews have become the glittering gems of the small business realm. These tiny nuggets of wisdom hold the power to make or break a business faster than you can say, “Is there a manager I can speak to?”
Nearly 95% of consumers read online reviews before making a purchase. Reviews have transcended their humble beginnings as mere star ratings to become the lifeblood of small businesses everywhere, breathing life into their reputations, fostering customer trust, and propelling growth. They serve as the digital high-fives from satisfied customers, holding such sway over our decision-making that they could probably convince us to buy snowshoes in the middle of the Sahara.
They build trust and credibility. Trust and credibility are the dynamic duo that can make or break a small business. In the tumultuous realm of business-customer relationships, trust reigns supreme. Picture this: a potential customer stumbles upon a small business website, hesitating on whether the site is legitimate. Customer reviews can reassure a hesitant buyer that this business is the real deal. These testimonials fight off skepticism and doubts with their authenticity.
How can you encourage your customers to leave reviews? The best way is to simply ask. You can also offer incentives to customers who leave a review (positive or negative), like a chance to enter a monthly giveaway. And don’t forget to thank them.
