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  • FSDH grants $3.9m loans to women businesses

    FSDH grants $3.9m loans to women businesses

    FSDH Merchant Bank says it has disbursed more than $3.9 million to women-led businesses in the last five years.

    This marks a major milestone announced at the fifth edition of its Women in Business Initiative (WIBI) Summit held in Lagos.

    The bank said partnerships with Bank of Industry (BOI), the International Finance Corporation (IFC), the Africa Growing Together Fund (AGF) AFAWA guarantee and WEAV Capital provided blended financial solutions and targeted support for female entrepreneurs.

    Speaking at the 2025 WIBI Summit, themed “Empowered – Celebrating Women in Motion,” Executive Director at FSDH Merchant Bank, Stella-Marie Omogbai, outlined the bank’s multi-pronged approach.

    “Over the past five years, the Bank has disbursed more than $3.9 million in loans to women-led businesses, working closely with partners such as BOI, IFC, AGF and WEAV Capital to deliver blended financial solutions and targeted interventions,” she said. Omogbai added that the bank’s capacity-building programmes have trained and mentored more than 500 women-led SMEs and engaged over 2,000 women through summits, masterclasses, coaching cohorts and accelerator programmes.

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    The event convened more than 1,000 women entrepreneurs, corporate professionals, creatives and policymakers to discuss scaling, capacity building and the role of finance in deepening the female economy.

    FSDH described its interventions as deliberately integrated, alongside concessional and collateral-free lending windows, the bank runs accelerator and coaching programmes in partnership with organisations such as the Enterprise Development Centre (EDC), IFC and WEAV Capital. One such programme — the Female Founders Growth Programme — supported tech startups with investment readiness, culminating in a Demo Day where a $10,000 non-equity grant was awarded to a promising venture.

    Managing Director, FSDH Merchant Bank, Bukola Smith, used the summit platform to reiterate the institution’s commitment to removing structural barriers that limit women’s access to finance and markets. “WIBI was built on the belief that when women are equipped with the right systems, knowledge and support, entire economies shift,” she said, highlighting the bank’s focus on the creative economy as a growth vector for female enterprise.

    The summit featured a mix of keynote addresses and panel discussions. Veteran actress and producer Joke Silva delivered the keynote, urging stronger, skills-focused training for young creative talents to compete globally. Panelists from public and private sector organisations emphasized the need for patient capital, institutional partnerships and sector-specific capacity building — particularly for export-oriented and tech-enabled women entrepreneurs.

    Development finance players in attendance underscored the role of blended finance in crowding in private capital while delegates from BOI spoke on concessionary credit lines tailored for women, while representatives from IFC and AGF highlighted guarantee schemes and risk-sharing instruments that lower the cost of capital for lenders.

    “FSDH’s WIBI Desk reported a portfolio of concessional products that includes long-term loans with moratorium options, short-term collateral-free facilities for working capital relief, and structured partnerships that de-risk lending through guarantees and co-financing. The bank said one BOI credit line — offering up to ₦100 million at a single-digit concessional rate — has been fully deployed, prompting requests for an additional tranche,” the bank said.

  • FSDH secures $20m AfDB loan for SMEs

    FSDH secures $20m AfDB loan for SMEs

    FSDH Group has secured a $20 million trade finance facility from the African Development Bank (AfDB) for lending to small and medium enterprises (SMEs) in Nigeria.

    Director-General, Nigeria Country Department, African Development Bank (AfDB), Mr Lamin Barrow said the facility was meant to ease financial constraints faced by SMEs.

    According to him, trade is considered the locomotive for economic development and trade finance is the lubricant.

    He, however, noted that the supply of trade finance in Africa was highly constrained for various reasons.

    Barrow said the bank supported over 120 financial institutions in 30 African countries and catalysed over $10 billion in trade in the past decade.

    “FSDH and the AfDB have enjoyed an enduring partnership in supporting SMEs and Nigerian corporates engaged in trade and export value chains. In 2016; the AfDB extended a $50 million trade finance line of credit to FSDH. This 3.5–year facility performed well. It supported more than 370 transactions, catalysed $375 million of trade and benefitted 60 SMEs and corporates in critical sectors including energy, agri-business, health and boosting intra-Africa trade,” Barrow said.

    He explained that the new $20 million facility comprises $15 million dollar trade finance line of credit to support eligible SMEs and corporates active in international trade value chains, as well as $5 million transaction guarantee to enhance FSDH’s correspondent banking relationships.

    “It will provide a 100 per cent guarantee to confirming banks to cover the non-payment risk of FSDH arising from the issuance of letters of credit and other trade finance instruments.

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    “This agreement is a testament to our collective endeavours to plug the trade finance gap in Nigeria by working with a valuable partner such as FSDH that provides critical support to SMEs.

    “We look forward to the successful implementation of this project while reaffirming the AfDB’s commitment to deepening and strengthening the financial sector in Nigeria,” Barrow said.

    News Agency of Nigeria (NAN) reported that AfDB has estimated the trade finance gap on the continent to be $81 billion per annum, while a recent study by the WTO and IFC estimated the gap in Nigeria to be $7 billion annually.

    It also reported that banks in Nigeria rejected a quarter of all trade finance requests from their clients.

    Lack of sufficient correspondent banking lines and inadequate access to foreign exchange were cited as major constraints.

    That is why the AfDB established a dedicated trade finance programme in 2013 to provide critical liquidity and risk mitigation support to financial institutions in Africa and for the benefit of SMEs and local corporate importers and exporters.

  • FSDH launches N1.5b IPO for treasury bills fund

    FSDH Asset Management Limited has opened an application list for the initial public offering (IPO) of its FSDH Treasury Bills Fund.

    The asset management firm is offering 15 million units of its Treasury Bills Fund at par value of N100 each. The minimum investment amount is 100 units or N10,000 with multiples of 100 units or N10,000 thereafter. The IPO, which opened on March 01, 2019, is scheduled to close on, March 28, 2019.

    The FSDH Treasury Bills Fund, a money market collective investment scheme, is an open-ended fund that will primarily invest in low risk short-term securities such as treasury bills, commercial papers and fixed deposits. The fund is authorised by the Securities and Exchange Commission (SEC) in accordance with the provisions of Section 160 of the Investment and Securities Act (ISA).

    In an executive summary on the new fund, FSDH stated that the objective of the fund is to provide investors with capital preservation, stable and consistent income flows.

    According to the company, the fund manager will achieve its objective by pooling funds together to actively manage and obtain competitive returns for investors.

    FSDH noted that the fund is targeted towards investors, who are interested in fixed deposits and are looking to achieve higher returns that ordinarily are not achievable with minimal funds.

    The company urged investors with low risk appetite, investors that require liquidity and those seeking to establish, on ongoing basis, a savings plan to invest in the new fund.

    Authorities at the Nigerian Stock Exchange (NSE) last week launched a new trading platform for mutual funds. The platform is expected to facilitate electronic transactions with seamless connection among key parties in transactions, including the Exchange, Central Securities Clearing System (CSCS), stockbrokers and fund managers.

    A mutual fund is a pool of funds brought together by a professional fund manager from several investors to invest in selected underlying securities. The underlying securities can be one or a combination of the following: stocks, fixed income securities, real estate, and commodities. A mutual fund portfolio is structured and maintained to match different investment objectives. The type of mutual fund an individual invests in depends on their financial objectives and appetite for risk.

    Most mutual funds are open-ended investment schemes. This means that the fund manager can create additional units for new investors on demand. The fund manager is also able to provide active liquidity by redeeming units from existing investors, who want to sell units for cash. Through this pool of funds, an investor creates wealth over a long period of time by making the money work for him through regular saving and investment.

    In addition to liquidity, mutual funds offer a range of benefits to investors, including portfolio diversification and lower transaction costs. The existence of a Trustee and Custodian to a mutual fund ensures the safety of investments, as the Trustee ensures that the fund is managed in line with approved investment guidelines, and the Custodian holds the fund assets.

  • FSDH calls for tax incentives for mutual funds

    FSDH Group, one of Nigeria’s leading investment banking groups, has called on the Federal Government to implement deliberate policies to grow the collective investment segment of the Nigerian capital market.

    In a research report released yesterday, FSDH stated that mutual fund investment can create wealth for investors and funds pooled together can be used to finance critical infrastructure and expand business operations.

    The report, however, noted the need for government, capital market regulators and operators to make concerted efforts to deepen the market and encourage the adoption of collective investment schemes, otherwise known as mutual funds.

    According to the report, there is significant room for growth in mutual fund assets as the ratio of mutual funds to the country’s Gross Domestic Product (GDP) is estimated at 0.51 per cent.

    The report noted that governments and corporates may access the required long-term funds to finance critical infrastructure and business expansion through the growth of mutual funds.

    The report stated that with appropriate structures in place, mutual funds can also be used to revive the real estate sector, which is currently in depression. As fund managers mobilise funds and invest in bond funds, real estate funds and equity funds, they are providing long-term capital for developmental purposes. They also provide short-term working capital through investment in Money market funds.

    FSDH stated that the growth in investable funds has positive multiplier effects on the economy.

    “Government could offer tax incentives to investors who are committed to a regular investment plan in mutual funds. It should also create an enabling environment that will lead to job creation in the country in order to increase savings and investable funds. Regulators could promote innovative legislation to increase investment in mutual funds and expand investment channels to increase returns on the funds invested,” FSDH stated.

    The report added that the Fund Managers Association of Nigeria (FMAN) should continue to create public awareness on the benefits of mutual funds in order to generate interest from the investing public.

    A mutual fund is a pool of funds brought together by a professional fund manager from several investors to invest in selected underlying securities. The underlying securities can be one or a combination of the following: stocks, fixed income securities, real estate, and commodities. A mutual fund portfolio is structured and maintained to match different investment objectives. The type of mutual fund an individual invests in depends on their financial objectives and appetite for risk.

    Most mutual funds are open-ended investment schemes. This means that the fund manager can create additional units for new investors on demand. The fund manager is also able to provide active liquidity by redeeming units from existing investors who want to sell units for cash. Through this pool of funds, an investor creates wealth over a long period of time by making the money work for him through regular saving and investment.

    In addition to liquidity, mutual funds offer a range of benefits to investors including portfolio diversification and lower transaction costs. The existence of a Trustee and Custodian to a mutual fund ensures the safety of investments, as the Trustee ensures that the fund is managed in line with approved investment guidelines, and the Custodian holds the fund assets.

    Mutual fund investments are affordable for low-income investors, as some funds require an initial investment of only N5,000. The mutual fund assets in Nigeria have grown significantly in the last five years. This is an indication of the growing interest in this class of investment.

    Data from the Securities and Exchange Commission (SEC) on the Net Asset Value (NAV) of all registered mutual funds in Nigeria shows that the collective NAV grew by 349% between November 1, 2013 and  November 2, 2018. This translates to a Compound Annual Growth Rate (CAGR) of 35% between the periods.

     

  • FSDH predicts 27.4% average return for equities in 2018

    Nigerian equities can  generate an average return of 27.43 per cent this year, building on the average gain of 42.3 per cent recorded last year, a report has said.

    In its ‘Economic and Financial Outlook 2018-2022’ report, FSDH Merchant Bank Group stated that the overall macroeconomic performance will continue to improve, strengthening sectoral growths and returns.

    The report, prepared by FSDH Research, the research and investment advisory arm of the wholesale banking group, noted that Real Gross Domestic Product (GDP) could grow by 3.16 per cent and 4.09 per cent in 2018 and 2019 respectively.

    According to the report, the outlook for Nigerian equities remains positive in 2018 as the macroeconomic environment is expected to strengthen further.

    “Thus we forecast a growth of 27.43 per cent in 2018, lower than the growth of 42.30 per cent recorded in 2017. We expect a strong rally in the equity market in the first half of the year 2018. We see investment opportunities in the banking, building materials and consumer goods sectors of the market,” FSDH stated.

    FSDH expects the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to ease monetary policy as inflation rate declines and exchange rate remains stable, thus stimulating growth in credits to the private sector, rebound in the activities in the corporate bond market, increase in the issuance of commercial paper and a growth in the equity market.

    The Group however, noted that increased attraction of equities and reduction in interest rates may lead to substantial drop in the average yields on fixed income securities in 2018 when compared with the previous year.

    Outlining the benefits of long-term investment strategy in equities market, FSDH, in a related report, advised investors to maintain long-term investment strategy in the equity market as analysis of the historical returns of the equity market shows that investors make good returns if they invest in stocks that have strong fundamentals and maintain a long-term view.

    “An investor who maintains a long-term strategy will earn capital appreciation, cash dividend and/or bonus over the investment horizon. Our analysis of the yearly returns of the equity market as measured by the Nigerian Stock Exchange All-Share Index (ASI) between 2008 and February 07, 2018 shows that the market recorded both losses and gains during the period. Although the equity market depreciated in more years than it appreciated, some stocks recorded returns in excess of 1,000 per cent,” FSDH stated.

    According to the investment banker, an analysis of the total return of an initial investment of N100,000 each in the 10 highest capitalised stocks, excluding Dangote Cement and Seplat Petroleum Development Company, between December 2008 and February 7, 2018 shows that Guaranty Trust Bank (GTBank) recorded the highest return of 1,100 per cent.

    The breakdown of the total return by GTBank shows that capital appreciation, cash dividend and bonus issue contributed 33 per cent, 20 per cent and 47 per cent respectively.

    The investment firm also urged investors to engage their investment manager before they invest in the equity market as the manager will help to create an equity portfolio for the investor based on his investment objectives while the client will also benefit from the experience of the investment manager.

    The wholesale banker however cautioned that the macroeconomic performance might be impacted negatively by any social unrest in some parts of the country, which may affect economic activities and lead to escalating inflation rate as well as external factors that can lead to a significant drop in the crude oil price and possible capital flight out of Nigeria in the event of excessive interest rate increase in the advanced economies.

    FSDH noted that although the political outlook remains stable, electioneering activities may slow down economic activities and exert upward pressure on prices.

  • FSDH Merchant Bank predicts robust income

    Companies will make higher profit and consumers will earn more money in 2018, leading investment banker-FSDH Merchant Bank Limited, has said.

    In its latest preview and research report, FSDH Merchant Bank stated that business profit and consumer income will grow higher in 2018 than in the last three years.

    The wholesale banker stated that its analysis of the recent data from the Central Bank of Nigeria (CBN) on the business and consumer expectations confirms the position on higher corporate profit and consumer income.

    The surveys that the CBN conducted in December 2017 had shown that the expectations of firms and consumers about the next 12 months improved from previous months.

    According to FSDH, the improvement in the business expectations should drive business expansion and increase the employment of labour. This, in turn, will increase the consumers’ purchasing power. On the other hand, the increase in consumer expectations will increase spending which will have positive impact on businesses.

    FSDH noted that the interrelationship between the two economic agents-business and consumer, will drive business profit and consumer income

    The latest Purchasing Managers’ Index (PMI) report published for the month of December 2017 by the CBN had shown improved business activities in both the manufacturing and non-manufacturing sectors. At 59.3 and 62.1 points, the Composite Manufacturing PMI and Composite Non-Manufacturing PMI respectively attained the highest levels since January 2015.

    “The impact of the expected growth in the business profit and consumer income is positive to the financial market. We expect it to drive equity market investments and position corporates to access long-term capital needed for expansion. Banks should also be more favourable to extend credit to both businesses and individuals, leading to a growth in the National Disposable Income,” FSDH stated.

    The investment banker added that the recent drop in the yields on the Nigerian Treasury Bills (NTBs) should also lower the borrowing cost for the business sector, which should also boost production activities and increase profits.

    FSDH also expected improved debt issues by companies as they respond positively to decline in cost of borrowing.

  • Nigerian banks are undervalued, says FSDH

    Nigerian banks are undervalued and have potential to grow their businesses and return competitive values to shareholders; a research report by FSDH Merchant Bank has shown.

    In its Banking Industry Report 2016 titled changing strategies, FSDH noted that while the crash in crude oil prices and oil production, and the attendant slowdown in economic activities in Nigeria had affected the performance of the banking industry in the last two years, there are still huge banking opportunities in Nigeria.

    According to the report, while a number of loan customers, both individuals and corporates are finding it difficult to meet their loan obligations leading to rising loan loss provisioning for the banks, which has hampered banks’ ability to create new loans, Nigerian banks are changing strategies in order to deal with the current economic challenges in order to satisfy all stakeholders.

    The report noted that despite the recent challenges, there are huge banking opportunities in the Nigerian economy and Nigerian banks only need to develop more constructive strategies to increase their share of the non-oil sector in their loan portfolios.

    “Although the Nigerian banking system faces some challenges in the short-term mainly from contraction in interest margin, rising non-performing loans and weak capital adequacy ratio, the challenges are manageable. Our analysis of the Nigerian banks listed on the floors of the Nigerian Stock Exchange (NSE) shows that they are trading at huge discount relative to their emerging market counterparts,” FSDH stated.

    The report, however, noted that the Federal Government needs to come up with workable plans to concession some critical infrastructure in road, rail, power transmission and ports in the country to private sector operators while revitalising the mortgage market through the Nigeria Mortgage Refinance Company (NMRC) with supports from multilateral organisations through foreign investments in order to help create economic activities in the real sector.

    “All these will engender bankable projects in construction and manufacturing sectors and stimulate lending. The ratio of the broad money supply (M2) to the Gross Domestic Product (GDP) remained relatively stable between 2010 and June 2016. It is however the lowest among the comparable countries. This means that there is still room to grow the monetary aggregates in Nigeria,” the report noted.

    FSDH’s analysis showed that more than three-quarters of quoted banks have potential to generate increased returns for investors.

    “Our fair value for United Bank for Africa Plc (UBA) is N9.31 per share. We derived this value by using the Discounted Free Cash Flow (DCF) method. The Cost of Equity, which is our discount rate, was estimated at 25.70 per cent and the terminal growth rate is 2.63 per cent. The 2016 Earnings Per Share is N1.59 while the 2016 forward Price-Earnings ratio is 5.85 times at our fair value. We place a BUY on the shares of United Bank for Africa Plc (UBA) at the price of N4.20 as of September 30, 2016,” FSDH stated in one of the analyses that showed most banks could double their share prices.

  • FirstBank, FSDH get AfDB’s $350m facility

    FirstBank, FSDH get AfDB’s $350m facility

    African Development Bank (AfDB) has approved $350million loans to First Bank of Nigeria and FSDH Merchant Bank Nigeria to support import-export activity of local enterprises.

    The continental lender said the two facilities are part of its broader efforts to provide counter cyclical support to the economy at a time of falling commodity prices.

    It said the fall had caused shortages in foreign currency supply and led to unmet demand for trade finance instruments to support on-going economic transitions.

    The Nigeria Country Field Office said yesterday in Abuja, that the facilities will support local enterprises involved in import-export activity.

    “The loans will help to address critical market demand for trade finance and dollar liquidity by supporting vital economic sectors.

    “Such sectors include agri-business, chemicals, construction and engineering, food processing, manufacturing and non-traditional exports.

    “It will foster financial sector development, enhance regional integration, contributing to increased government revenue generation at a time when the Nigerian economy is facing fiscal pressures and foreign currency liquidity challenges.

  • FSDH Merchant Bank gets ISO certification

    FSDH Merchant Bank Limited has received a global stamp on the reliability of its system with the award of the International Standards Organisation’s ISO 27001:2013 to the leading Nigerian merchant bank. FSDH is the first among the merchant banks that were licensed by the Central Bank of Nigeria (CBN) to achieve this feat.

    Managing Director and Chief Executive Officer of FSDH Merchant Bank, Mr. Rilwan Belo-Osagie, said that the bank attained the feat through its hard work and dedication of its people, who are seasoned professionals in the banking Industry.

    He explained that the ISO 27001 Certification demonstrates that FSDH has placed information security as priority while reassuring stakeholders that a best practice system is in place, and compliance with CBN banking industry IT Standards is achieved.

    He added that the certification would further enhance investors and customers’ confidence in the bank’s system and processes, which are already regarded as the best in the industry.

    Belo-Osagie said the company will continue to do its best to maximise shareholder value.

    He said the bank plans to do this by constantly realigning and diversifying its operations to take full advantage of unfolding opportunities as they arise.

    He pointed out that its experience as a discount house has helped the FSDH Merchant Bank expand the frontiers on the banking industry.

    “The year 2015 marks the third year of our operations as a merchant bank. We intend to continue with our time tested conservative approach of building a portfolio of risk assets that will stand the test of time; while ensuring that we meet the demands of our customers through the provision of world class financial services at all times,” Belo-Osagie said.

    He added that the bank has since starting operation offered a broader range of services to its clients thereby, deepening its client relationships, in line with the approval it secured from the CBN to commence merchant banking operations.

    He noted that since March 1993 when FSDH began operations as the first discount house in Nigeria, the company has become a financial services group focused on delivering expert financial services to its select clientele, thereby assisting them in achieving their financial goals.

    In continuation of the company’s tradition as a pioneer in the finance industry, FSDH became one of the first merchant banks to be awarded a licence in Nigeria since the repeal of Universal Banking by CBN in 2010.