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  • Nigerian stocks reach their lowest levels, says FBN Capital

    Nigerian quoted equities have reached their lowest levels and may therefore show more recovery than depression in the period ahead, according to FBN Capital Limited.

    In a review of the Nigerian equities market, FBN Capital, the investment banking subsidiary of FBN Holdings, said while the Nigerian equities market might still come under global risks, the market appeared to have fully factored in domestic macroeconomic economic risks and prices have bottomed-out.

    “In January, we forecast a -1.0 per cent loss for the index (All Share Index of the Nigerian Stock Exchange) over the full year. On the basis of solely domestic factors, we think that the market has reached the bottom,” FBN Capital stated.

    The stock market opened on Monday with a negative average year-to-date return of -9.28 per cent, trailing the Kenyan stock market, which had recorded average year-to-date return of -13.6 per cent. In contrast, the South African stock market, Africa’s most liquid and largest market, had gained 5.4 per cent over the same period.

    Under the influence of the political transition, the stock market has been erratic over the past seven months, gaining 20 per cent between March 20 and April 13 on an election-driven surge and then started a sustained streak of depreciation, losing 11.9 per cent in the subsequent period.

    FBN Capital attributed the downtrend at the Nigerian Stock Exchange to “poor listed company results and an investors’ sense of drift since the handover to the new administration on May 29”.

    The investment report noted the various concerns over the delay in forming executive cabinet by President Muhammadu Buhari but analysts at FBN Capital appeared to side with the contrary position that views the concerns as misplaced, noting that while numerous commentators have been highly critical, they tended to overlook the reality that civil servants “run” countries and not ministers.

    The report, however, noted that the stock market might still come under pressure from a sustained fall in the oil price, which would intensify pressures on the public finances, the balance of payments and the naira exchange rate.

    “We also highlight a general risk to frontier and emerging markets from expected United States monetary tightening this year,” FBN Capital added.

    Analysts noted the increase in foreign portfolio investments. The NSE’s monthly notes on investor participation had shown foreign inflows at N285 billion in first half of the year and outflows at N304 billion. However, the month of June saw the largest net inflow of the period at about N16 billion.

    The report, however, hinted of possible further devaluation of Naira noting that the offshore community expects a third devaluation in one year, and FBN Capital also expects another adjustment by the end of the year.

    Nigerian equities had gained more than a double of the best return in the select global stock market last week as strong four-day consecutive rally neutralised last-day relapse and left the market with its highest week-on-week performance in recent weeks.

    After losing N1.13 trillion in July, the Nigerian stock market opened August with considerable rally. Day-on-day gain between Monday and Thursday moderated the built-up negative average year-to-date return. However, the market relapsed on the last trading day on Friday as investors turned round to profit-taking.

    The All Share Index (ASI), the common value-based index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), closed last week with a week-on-week gain of 4.18 per cent. It closed weekend at 31,441.71 points as against the week’s opening index of 30,180.27 points. Also, aggregate market value of all quoted companies rose to N10.776 trillion; representing an increase of N432 billion on its week’s opening value of N10.344 trillion. The gain last week moderated the negative average year-to-date return to -9.28 per cent.

    A review of some major advanced and emerging global markets showed that Nigerian equities outperformed other markets with considerable margin. The United States’ Standards & Poor’s 500 ( S & P 500) and the NASDAQ declined by 1.6 per cent and 1.1 per cent respectively. In Europe, the United Kingdom’s FTSE recorded a modest week-on-week gain of 0.5 per cent.  France CAC and German DAX outperformed other advanced markets with weekly gain of 2.2 per cent and 2.0 per cent.

    In Asia, the Shanghai Composite Index rose by 2.2 per cent as against modest decline of 0.3 per cent by Hong Kong Hang Seng. The Japanese Nikkei appreciated by 0.7 per cent.

    In the emerging markets under the BRICS group (Brazil, Russia, India, China and South Africa), Russia’s RTS indicated a negative return of -2.4 per cent while the Brazilian IBOVESPA also declined by 2.7 per cent. On the positive side, the South African FTSE and the India BSE Sens returned 0.6 per cent and 0.4 per cent respectively. Most African markets recorded positive performance, albeit lower than Nigeria’s. The Egypt EGX (Egypt General Index) rose by 0.1 per cent while Kenya’s Nairobi Stock Exchange (NSE) Index inched up by 0.2 per cent. However, Ghana Stock Exchange (GSE) Index declined by 1.0 per cent.

    Low-priced stocks, otherwise known as penny stocks, were the toasts of investors last week. Penny stocks dominated the top-gainers’ list with Evans Medical leading the pack with a gain of 38.9 per cent to close at 75 kobo. Transnational Corporation of Nigeria (Transcorp) recorded the second highest percentage gain of 29.1 per cent to close at N2.66. PZ Cussons Nigeria recorded exceptional gain of 25.26 per cent to close at N34.51, the largest gain by any high-priced stock. May & Baker Nigeria also rose by 14.5 per cent to close at N1.50 while Continental Reinsurance appreciated by 12.05 per cent to close at 93 kobo.

    Total turnover increased to 2.38 billion shares worth N18.99 billion in 19,769 deals last week as against a total of 1.37 billion shares valued at N17.95 billion traded in 17,391 deals in the previous week. Financial services sector remained the dominant sector with a turnover of 1.996 billion shares valued at N13.195 billion in 11,232 deals; representing 83.79 per cent and 69.49 per cent of the total equity turnover volume and value.

     

     

    Conglomerates sector occupied a distant second position on the activity chart with a turnover of 106.53 million shares worth N425.53 million in 1,150 deals. The third place was occupied by natural resources sector, which recorded turnover of 100.021 million shares worth N50.103 million in 16 deals.

    The trio of Continental Reinsurance Plc; Zenith International Bank Plc, and Axamansard Insurance Plc were the most active stsocks, accounting for a total of 1.03 billion shares worth N5.21 billion in 2,339 deals, about 43.4 per cent and 27.4 per cent of the total equity turnover volume and value respectively

     

  • Ex-PENCOM CEO Ahmad joins FBN Holdings’ Board

    FBN Holdings Plc., the leading and most diversified financial services group in Nigeria, has announced the appointment of Mr. Muhammad K. Ahmad as a Non-Executive Director.

    He is a seasoned public sector executive with over 35 years experience spanning the public sector and the financial services industry.

    He served as the pioneer Director- General and Chief Executive Officer of the National Pension Commission (PENCOM), who oversaw the growth of the pension industry in Nigeria from ground zero to a N4.7 trillion Asset Under Management industry.

    He was also a pioneer staff member of the Nigeria Deposit Insurance Company (NDIC), where he rose to become a Director. He has served on the Board of various companies and committees, including banks and not-for-profit organisations.

    In a statement, the firm said the appointment, apart from deepening the already rich cumulative experience of the Board, is also in compliance with the Central Bank of Nigeria’s (CBN’s) Guidelines for Licensing and Regulations of Holding Companies in Nigeria, which require that the aggregate number of directors from the subsidiaries and associates should not exceed 30 per cent of the membership of directors of the financial holding company.

    The appointment, subject to CBN approval, brings the number of directors of the Holding Company to 10.

     

     

  • FBN Mortgages appoints new board

    FBN Mortgages appoints new board

    FBN Mortgages Limited, a subsidiary of First Bank of Nigeria Limited, has announced the constitution of a new Board of Directors to provide superior value to all stakeholders.

    This it said, will also allow for increased thought leadership interventions and corporate governance consolidation in the conduct of its affairs.

    The mortgage company was established to provide integrated mortgage solutions to individuals and property investors, fund the development of quality residential and commercial accommodation choices as well as facilitate acquisition via a wide range of innovative financial products and solutions across a wide range spectrum.

    The New Board is made up of eminent persons who have displayed excellent business knowledge and board experience across an array of industries.  The FBN Mortgages Board of Directors is led by its Chairman – Mr. Tunde Odunayo with Mr. Adenrele Oni as MD/CEO. Other members of the new board are Abdullahi Ibrahim, Otunba Bosede Osibogun, Olatubosun Ashiru, Titilayo Ahmadu and Dr. Umaru Kwairangfa.

  • We may consider value-added acquisitions, says FBN Holdings

    We may consider value-added acquisitions, says FBN Holdings

    FBN Holdings Plc, the holding company for First Bank of Nigeria (FBN) and its former subsidiaries, may consider acquiring other Nigerian and non-Nigerian assets that strategically fit into the holding company’s business and have high potential to add values and increase returns to stakeholders.

    Head of finance, FBN Holdings Plc, Mr. Oyewale Ariyibi, in an interactive media session with select senior journalists, said while the group has no immediate plan for acquisitions, it will consider opportunities that will enhance the group’s performance and further strengthen its business profile.

    FBN Holdings had recently made a string of acquisitions including International Commercial Bank (ICB) West Africa, Oasis Insurance and Kakawa Discount House Limited. FBN Life Assurance Limited, an insurance subsidiary of FBN Holdings Plc, had acquired about 4.63 billion ordinary shares of 50 kobo each of Oasis Insurance from the previous core investors-Oasis Group Limited and MetroWest Investments Limited. The sale transferred the majority 71.2 per cent equity stake in Oasis Insurance to FBN Life Assurance. Oasis is quoted on the Nigerian Stock Exchange (NSE). With the acquisition of 71.2 per cent, FBN Life had also launched a mandatory take-over bid to the remaining shareholders of Oasis insurance in line with section 131 of the Investment and Securities Act (ISA) and Rule 445 of Securities and Exchange Commission (SEC)’s Rules and Regulations.

    With operations in Guinea, Gambia, Ghana and Sierra Leone, ICB provides First Bank with a strong geographic platform for growth and an established customer base across the mid-corporate, small and medium enterprises (SME) and retail segments that complement the bank’s existing strategy in Nigeria. ICB has over 600 employees and 120,000 customer accounts spread across these four markets. ICB also operates in markets with major investments in key growth sectors on the continent, most notably the major mining industries that are prevalent in Guinea and Ghana and emerging in Sierra Leone as well as positioned for the commercial operations in the emerging oil and gas opportunities in Ghana and Guinea. It should be noted that First Bank had in 2011 acquired BIC in the Democratic Republic of Congo, starting its progressive and case by case approach to inorganic growth opportunities. Since acquiring BIC, the bank has successfully managed an integration process that has incorporated BIC into First Bank’s operations while delivering short term improvements in financial performance as well.

    Ariyibi noted that the focus in the immediate term will be on the integration of the acquired assets to ensure the group derives maximal benefits from the assets pointing out that the group is optimistic that it would start reaping immediate benefits from the acquisitions given their strategic fit into its existing businesses.

    According to him, the acquisitions were part of the strategic plans of the group aimed at complementing existing businesses and strengthen the group’s leadership. The acquisition of ICB will enable the group to integrate banking services across West Africa and further support businesses across the region. The acquisition of Kakawa Discount House offered a unique blend of fixed-income origination and distribution which fit into the group’s business and allow it to increase the size and diversity of products offering. The acquisition of Oasis Insurance brought the retail insurance to complement the group’s leadership in life insurance, giving the group higher penetration.

    “Between now and 2016, we do not have plan to acquire, we will focus on integration of the acquired assets to get benefits from them. But if our strategic and business development unit sees any asset that will be a strategic fit, then it will go through the entire gamut of review process, if it would add value to the business and stakeholders, then we may consider that,” Ariyibi said.

    He said FBN Holdings has been able to moderate the adverse impact of regulatory headwinds through increased internal efficiency, pointing out that the third quarter earnings of the bank underlined the improvements in its operational efficiency.

    Citing earnings headlines, he added that the third quarter earnings reaffirmed First Bank’s position not only as the largest and biggest bank in terms of network and assets, but the strongest supporter and financier of the productive sector.

    Key extracts of the nine-month report of FBN Holdings for the period ended September 30, 2014 showed improvements in the group’s top-line and pre-tax profit, although net profit remained suppressed by higher tax provisions. Group profit before tax rose to N73.75 billion in third quarter 2014 as against N70.07 billion recorded in comparable period of 2013. The bottom-line performance was driven by appreciable improvement in the top-line. The group’s core commercial banking activities picked up considerably during the period with interest income rising from N239.16 billion in September 2013 to N255.72 billion by September 2014. Net interest income rose to N176.49 billion in 2014 as against N172.43 billion in 2013.

    Further analysis of the top-line showed growths across the segments. Fees and commissions incomes rose from N44.05 billion to N51.22 billion while foreign exchange income increased from N5.05 billion to N17.16 billion. With 65 per cent increase in income tax expenses from N10.99 billion to N18.12 billion, net profit after tax was slightly depressed at N55.63 billion in September 2014 compared with N59.09 billion recorded in corresponding period of 2013. The group’s balance sheet size built up to N4.19 trillion in September 2014 compared with N3.87 trillion recorded as total assets in December 2013. Shareholders’ funds also rose from its 2013 year-end position of N471.78 billion to close September 2014 at N493.67 billion.

    He said FBN Holdings has returned the best dividend growth over the past five years with a cumulative annual growth rate of 16 per cent for dividend payout over the past five years.

    “What we do is to ensure we sweat the capital and ensure we get adequate returns. If you look at our results from 2010 to 2014, in terms of dividend payment payout, we have paid 10, 60 kobo, 80 kobo, 100 kobo and 110 kobo in the last five years. If you look at that, that gives a cumulative annual growth rate of 16 per cent dividend payout, there is no other company that can boast of this on the stock exchange and we are progressing on this,” Ariyibi said.

    He pointed out that the high returns on FBN Holdings’ stock and the facts of its history and operations as the leading bank make investment in the company like investment in a fixed-income instrument with equity upside, assuring that investors will always get good returns from the bank.

    On the relative undervaluation of the company’s stock relative to other financial services companies, he explained that a section of the previous Pension Reform Act that prevented pension fund administrators (PFAs) from investing in new companies that have not made profit and declare dividend in at least three of the last five years was misinterpreted to include newly formed holding company such as FBN Holdings and dissuaded PFAs, which are the largest Nigerian institutional investors, from investing in the company’s stock.

    The constrained liquidity orchestrated by this reduced the market dynamic of the stock and limit its uptrend.

    He however noted that with the emergence of the new Pension Act 2014 and removal of the inhibiting section, FBN Holdings will be the toast of the PFAs once the National Pension Commission release its new guideline for pension investment, which is expected by the month-end or January 2015.

    Ariyibi said the group’s First Bank has imbibed all the existing and upcoming regulatory changes and it’s better position to sustain compliance with regulatory benchmarks including the upcoming increase in capital adequacy ratio for systemically important international commercial banks to 16 per cent by April 2015, as against 15 per cent for other international commercial banks not deemed as systemically important banks.

    According to him, as the banking sector transits from Basel 1 to Basel 11, First Bank is well positioned to meet the requirements and has no challenge whatsoever with capital adequacy ratio.

    He also allayed fears of possible spike in non-performing loans as a result of loans to oil sector, which has been rattled by decline in crude price, noting that First Bank’s loans are well structured to mitigate against non-performance.

  • FBN Capital allays investors’ fears over market trend

    The downtrend at the stock market presents valuable investment opportunities for discerning investors as quoted companies are now substantially underpriced below their intrinsic values, FBN Capital has advised.

    Managing Director, FBN Capital Limited, Mr. Kayode Akinkugbe, said low stock prices should be opportunities rather than threats to Nigerian investors as the fundamentals of the quoted companies remain substantially higher than prices.

    With the recent fall in oil prices which is the mainstay of Nigeria’s economy, the drop in stock market prices and the upcoming elections among other factors, some analysts had concluded that this paints a picture of uncertainty for Nigeria’s economy and thus an unlikely scenario for investors to pitch their tents in Nigeria.

    The persistent decline in oil prices is becoming an increasing threat to the value of the Naira. This is because of its impact on Nigeria‘s revenue and the exchange rate. This threat to Nigeria‘s macro-economic stability is also exacerbated  by the security challenges in the North-Eastern part of the country and the upcoming 2015 general elections, which is likely to be accompanied by increased political spending.

    “It is an opportunity, particularly if I am a domestic investor; I see this as an opportunity. For an international investor, perhaps, I’ll be a little cautious, trying to get a bit more of the senses to where is the currency going. It is likely to go in one direction; the issue is, how far. So if I am a foreign investor with a very long term view, then actually coming into the public equity market, there are some good opportunities now. I won’t necessarily just put on the breaks, if I am a foreign or domestic investor,” Akinkugbe said.

    Akinkugbe was part of the faculty of experts and policy makers that reviewed the macroeconomic outlook at the 2014 Investor Conference hosted by FBN Capital Limited, the investment banking and asset management subsidiary of FBN Holdings Plc, last week.

    According to him, while the elections have to come with their own challenges, they would not have much of negative effect for long term investors as the democratic dispensation has shown more stability over time with successive governments building on the sustainable initiatives that drive the economy.

    “Yes, we have elections around the corner. Out of prudence, if you sit in a strategy session now, in any major corporate, and you are thinking of making a 10 year investment, and you have two three months to elections, you may decide to be patient and that is reasonable enough. But should you necessarily be extra worried?  In fairness, there isn’t such a strong correlation between volatility and Nigerian elections. So I think there are still lots of opportunities,” Akinkugbe said.

    Discussions at the conference showed how the rebasing increased Nigeria’s profile highlighting the fact that Nigeria is now the largest economy in Africa which says a lot because it suddenly puts the nation on the radar of many more investors.

    Looking into the coming year, it would appear that in spite of the predicted challenges that some feel would have a negative effect on the Nigerian economic landscape, there exists immense potential for sustainable growth of the economy. Already the effects can already be seen as a significant portion of Nigeria’s GDP growth in recent times has been from the non-oil sectors of the economy. With further development of infrastructure and institutions Nigeria could well be on its way to becoming one of the major economic giants on a global scale.

     

  • FBN, EKSU partner on ICT

    A high-level delegation from the First Bank Nigeria (FBN) Plc led by its Executive Director, Mr. Gbenga Shobo has visited the Management of Ekiti State University (EKSU) to discuss collaborations in the areas of Information Communication Technology (ICT).

    Shobo, who led the team, said the bank is pleased with the performance of the EKSU edu-portal which is run by the financial institution and plans to upgrade the facility to include e-learning to benefit the students

    He added that the edu-portal can incorporate details of students’ transcripts from entry point of admission to graduating year.

    The Deputy Vice-Chancellor, Academic, Prof Ibiyinka Ogunlade, who represented the Vice- Chancellor, Prof. Oladipo Aina thanked the team for its cooperation and described the relationship between EKSU and the Bank as beneficial.

    Ogunlade, however, explained that there is need for both partners to discuss the way forward to strengthen the existing relationship.

     

  • Etisalat, FBN Insurance launch Sure4Life

    Etisalat, FBN Insurance launch Sure4Life

    FBN Insurance Limited and Etisalat have introduced ‘Sure4Life”, an airtime-based insurance product designed to increase penetration and consumer access to affordable insurance products via the mobile phone.

    Director, Business Segment at Etisalat Nigeria, Lucas Dada, who spoke at the launch, said the product will help drive availability and access to agood number of  uninsured Nigerians.

    In addition, it will provide Etisalat customers with one month free life insurance cover between May and July, this year, he said.

    Dada noted that the partnership would bring inexpensive and easy  reach to insurance products to the benefit of Etisalat’s growing prepaid and post-paid customers.

    He said: “Sure4Life is an innovative product which takes away all the challenges that may be associated with taking an insurance policy and allows Etisalat subscribers to access and maintain insurance coverage with ease. It is in line with our reputation as the most innovative telecommunications company to provide such life-changing products to our customers.

    “The plan is optional and open to all registered Etisalat subscribers that are between 18 and 80.”

    Managing Director and Chief Executive Officer, Val Ojumah  of the underwriting firm said the initiative will help correct the inaccurate perception that insurance is only for the rich and reduce the complexities and paperwork often associated with insurance. The initiative also supports our aspiration to bring the benefits of insurance to Nigerians who otherwise would have remained uninsured.

    He explained that with a monthly insurance premium of N100 monthly, registered Etisalat subscribers will have the benefit of a flat of N100, 000 payable to the beneficiary in case of death of the policy holder and a maximum of N10, 000 for medical expenses in the event of an accident.

    Death benefit per life shall be limited to N200, 000, maximum of two Etisalat registered numbers, whereas the medical expenses benefit per any one life shall be limited to N20, 000, maximum of two Etisalat registered numbers, he said.

  • NAICOM okays four insurers’ 2013 accounts

    NAICOM okays four insurers’ 2013 accounts

    Four insurance firms have had their 2013 financial accounts approved by the National Insurance Commission (NAICOM) in the first quarter of 2014 as required by law.

    The four firms are Mansard Insurance Plc, Custodian General Insurance, Custodian Life Assurance Ltd and Cornerstone Insurance Plc.

    The commission disclosed this in a circular titled: “Submission Status of 2013 Financial Statements of Insurance Companies as at April 23, 2014.

    The early approvals is a departure from the past where insurers find it difficult to submit their true financials and get approval from the regulator as and when due.

    While Mansard Assurance Plc has already done its AGM, the other three are expected to do theirs soon.

    Meanwhile, the accounts of Zenith Life Insurance Limited; NSIA Insurance Limited; FBN Life Assurance Limited; Wapic Insurances Plc; Zenith Insurance Company Limited and Wapic Life Assurances are being reviewed.

  • FBN Holdings, others seal $170m financing deal for gas assets

    FBN Holdings and Ecobank Nigeria Limited have provided $170 million to Seven Energy International Limited towards the energy group’s acquisition of the gas assets and entire issued share capital of the East Horizon Gas Company (EHGC) Limited.

    The multi-party financing deal will provide Seven Energy’s wholly-owned subsidiary-Accugas Limited, with part of the funds to complete its $250 million acquisition of the entire issued share capital of the East Horizon Gas Company.

    FBN Holdings participated in the financing deal through its subsidiaries-FBN Bank (UK) Limited and FBN Capital Limited. The $170 million medium-term acquisition finance facility were being financed by FBN Bank (UK) Limited and Ecobank Nigeria Limited.

    FBN Capital Limited acted as structuring bank, sole initial mandated lead arranger, financial modelling bank and global facility coordinator. Aluko& Oyebode acted as lenders legal counsel, Royal HaskoningDHV Nederland BV represented the lenders on environmental and technical due diligence matters while UUBO and Addleshaw Goddard acted as the borrower’s local and international legal counsels respectively.

    EHGC was established by Oando Plc with the intention of constructing and operating an 18-inch, 128 km gas pipeline that connects with the Obigbo-Alscon pipeline at Ukanafun to supply gas to an industrial offtaker located in Mfamosing, Cross River State, and to meet the needs of other industrial users in the Calabar region.

    Seven Energy stated that its acquisition of EHGC is in line with its strategic plans to expand its gas infrastructure assets in the south east Niger Delta. Through its assets and subsidiary, Accugas, Seven Energy has a number of infrastructure projects in the region, including a gas processing facility at the Uquo Field and a gas pipeline network, which will have the capability to supply gas in the Port Harcourt, Aba and Calabar areas.

    Managing director, FBN Capital Limited, Kayode Akinkugbe, said the deal demonstrated FBN Holdings commitment to financing growth and development of the Nigerian oil and gas sector.

    “FBN Holdings Group feels a strong sense of responsibility towards fostering growth in the power; gas pipeline and oil and gas sectors and we will continue to deploy our extensive debt arranging experience and structuring expertise in executing robust transactions in record time,” Akinkugbe said.

    Director and Head Debt Solutions, FBN Capital Limited, Patrick Mgbenwelu, added that FBN Capital remained committed to further strengthening and supporting Seven Energy in realising its various financing goals and objectives.

    Commenting on the transaction, Chief Executive Officer, Seven Energy International Limited, Phillip Ihenacho, said the financing deal was a landmark transaction as it will enable the company to expand its midstream operations in Nigeria.

    “It is a perfect fit to our strategy of investing in core midstream infrastructure assets in the south east region of the country. I would also like to thank the entire team for their achievement in bringing this important financing transaction to a close,” Ihenacho said.

    According to the him, in consolidating the gas infrastructure assets of Accugas and EHGC, Accugas aims to strengthen its distribution platform, increase efficiency and broaden its geographical reach, furthering Seven Energy’s intention to create a leading gas distribution business in Nigeria.

    Chief Financial Officer, Seven Energy International, Bruce Burrows commended the lenders-FBN Bank (UK) Limited and Ecobank Nigeria Limited, for their support and dedication to ensure that the completion of the EHGC acquisition process was in line with the sponsors’ timetable.

    He also noted FBN Capital’s role, particularly in working closely with Seven Energy, the lenders and the various independent consultants in concluding the transaction.

     

     

  • FirstBank, Hong Kong seek closer business ties

    FirstBank of Nigeria Limited is collaborating with the government of Hong Kong to harness business opportunities in China and other Asian countries.

    The partnership is being supported by Invest Hong Kong (InvestHK), a department of the Government of Hong Kong working to strengthen the state’s status as a leading international business location in Asia by attracting and retaining foreign direct investments in Hong Kong.

    Speaking during a meeting with Nigerian entrepreneurs held at the weekend in Lagos, the Chairman, FBN Holdings, Chief Oba Otudeko, said the initiative would help both parties provide adequate investment opportunities in China as well as other Asian countries.

    He explained that the InvestHK would boost trade and business flow among China, Hong Kong and Nigeria. Otudeko urged Nigerians to embrace the investment and business initiatives of the Asian countries. “It is a point of contact, which I think I want to encourage and recommend very strongly for Nigerian business communities to invest,” he said.

    He also noted InvestHK offers opportunity in the Hong Kong Information Technology, real estate among other investment opportunities.

    Director-General, InvestHK, Simon Galpin, during his presentation, said the initiative was necessary to assist companies to invest and set up businesses in Hong Kong.

    He said partnership with First Bank would help strengthen the country’s relationship with businesses in Africa. “Now is a good time for Nigeria companies to come to Hong Kong to attract investment from Hong Kong,” he said.

    Galpin described Hong Kong as a gateway to opportunities in mainland China and it’s a regional base for expansion across Asia. He said Hong Kong is increasingly the first stepping stone for mainland Chinese companies, when going global.

    In the last year, Hong Kong recorded greater exports than United Kingdom and Italy at $527 billion. Hong Kong’s Gross Domestic Product (GDP) was $962 billion. Hong Kong is a part of China’s one country, two systems structure, operating its own government though within China.