Connect with us


Recapitalisation race: Top banks target $3bn fund in foreign capital markets



Recapitalisation race: Top banks target $3bn fund in foreign capital markets

Four of the tier-1 banks in the country, FBN Holdings, Access Holdings, Guaranty Trust Holding Company Plc and United Bank for Africa Plc have indicated plans to raise about over $3.03bn (N3.46tn) in fresh capital.

This came barely one month after the Central Bank of Nigeria directed Deposit Money Banks to recapitalise.

According to The PUNCH findings on Sunday, the four tier-1 banks announced plans to raise funds from both the international capital market and the local market.

At least two of the financial institutions, FBN Holdings and GTCO announced their plans to raise fresh capital last week, while Access Holdings said it would raise capital in both naira and US dollars.

FBN Holdings in a notice of its Extraordinary General Meeting filed with the Nigerian Exchange Limited disclosed that it would be seeking shareholders’ approval to raise N300bn additional capital.

According to the notice, shareholders will consider and vote on the special business “that the company be and is hereby authorised to undertake a capital raise of up to N300,000,000,000.00 (three hundred billion naira)”

The financial institution is seeking to raise the funds via a public offering, private placement, or rights issue in the Nigerian or international capital markets.

Similarly, GTCO revealed that it would be seeking shareholders’ approval to raise $750m.

In a notice on the capital raising, GTCO said the fund would be raised “through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments, in the Nigerian and/or international capital markets, either as a standalone issue(s) or by the establishment of capital raising programme(s), whether by way of public offerings, private placements, rights issues and/or other transaction modes, at price(s), coupon or interest rates determined through book building or any other acceptable valuation method or combination of methods, in such tranches, series or proportions, within such maturity periods and at such dates and upon such terms and conditions as may be determined by the board of directors of the Company (the Board), subject to obtaining the requisite approvals of the relevant regulatory authorities.”

Similarly, Access Holdings is seeking to launch a capital raising programme to raise funds in two currencies, the Nigerian naira and the US dollar.

In a statutory notice filed with the NGX, Access Holdings said that it was looking at raising $1.5bn via a share sale or bond offering. The parent company of Access Bank, said it would also ask existing shareholders for permission to raise N365bn through a rights issue at its next Annual General Meeting scheduled to be held this month.

The United Bank for Africa also revealed plans to raise fresh capital to meet the new regulatory benchmark.

In a statement issued late Sunday, the banking group said it is actively exploring a well-defined strategy to boost its capital base and ensure compliance within the regulatory time frame.

UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, in the statement, said, “This strategy may include a combination of options such as Rights Issue or Private Placement. The fact remains that we are confident in our ability to meet the CBN’s capital adequacy requirements and will keep investors informed as we progress.”

READ ALSO  NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD

The PUNCH gathered that the banking group is looking at raising about $200m from the international capital market and raising another round of funding from the local market for an amount yet to be specified. The bank is expected to release a statement in this regard this week.

Wema Bank

As of the time of this report, tier-2 bank, Wema Bank said it had raised N40bn during its rights issue and is waiting for regulatory approval.

The bank’s MD, Moruf Oseni, said that it would “Accelerate its capital management plans and ensure we embark on the journey to raise the required capital as quickly as possible.”

Sterling Bank Limited recently raised N21bn through the Sterling Investment Management SPV Plc under its N30bn Debt Issuance Programme.

On Friday, Zenith Bank said it would be asking shareholders for approval to increase its issued share capital from N15,698,246,893.50 divided into 31,396,493,787 ordinary shares of N0.50 Kobo each to N31,396,493,787 through the creation of new shares.

It has yet to state the value of the additional capital it intends to raise via the creation of fresh shares. However, it was stated, that the capital raising programme is being proposed to happen on both the Nigerian and international capital markets.

According to the issuing house, Afrinvest Capital Limited, the offer opened on March 27th, 2024, and closed on Monday, April 8, 2024. The proceeds will be used to purchase 10 Year Notes issued by Sterling Bank Limited.

The CBN had in a circular in late March to commercial, merchant and non-interest banks and promoters of new banks announced the review of the capital requirements for the operations of the affected categories of banks in the country.

Citing both domestic and global shocks, the apex bank in a statement signed by its Acting Director, Corporate Communications, Sidi Ali, said it had become necessary to raise the capital base of the banks.

Thus, the CBN directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn while those with regional authorisation are expected to achieve a N50bn capital floor. Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively.

According to the CBN circular, only the share capital and share premium items on the Shareholder Fund portion of the balance sheet will be recognised in this particular round of recapitalisation.

The apex bank circular said, “For Existing Banks a. The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall NOT be based on the Shareholders’ Fund. b. Additional Tier 1 Capital shall not be eligible for the purpose of meeting the new requirement. c. All banks are required to meet the minimum capital requirement within a period of 24 months commencing from April 1, 2024 and terminating on March 31, 2026. d. Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio requirement applicable to their license authorization. e. In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularize their position.”

READ ALSO  ‘Dangote has broken every boundary in business, let’s support him’ – Femi Otedola

For proposed banks, the CBN said that their minimum capital requirement shall be paid-up capital and applicable to all new applications for banking licences submitted after April 1. 2024.

Meanwhile, an analysis by The PUNCH put the fresh capital to be raised by 26 banks including commercial banks, merchant banks and non-interest banks at about N4tn in the next 24 months.

Although analysis showed that 12 financial institutions, including Access Holdings, FBN Holdings, FCMB Group, Fidelity Bank Plc, Stanbic IBTC, Zenith Bank Plc, United Bank for Africa, Sterling Financial Holdings, Guaranty Trust Holding Company Plc, Wema Bank, Polaris Bank and non-interest bank, Jaiz Bank have about N4.8tn in retained earnings, they are not allowed to add this to the capital base due to the CBN directive.

Analysts react

Meanwhile, the capital raising efforts by the financial institutions, according to a capital market analyst, Ambrose Omorodion, could lead to dilution of the shareholding structures and earnings of the firms.

He added that they would create more shares to accommodate the new investors.

To tackle this situation, Omorodion, said that the financial institution would have to improve on their performance to be able to deliver value to stakeholders.

He said, “The capital raising is going to dilute the shareholding structure and earnings of the banks unless they double their performance in order to justify their price to shareholders. In all, there are opportunities to make money from this process.”

Thus far, talks of mergers and acquisitions have not been pronounced in the current recapitalisation exercises as Omorodion said that small banks were the most likely to consider that option.

“Mergers will be for tier-2 banks. The bigger banks will likely go for the small banks to increase their operational base across the country and beyond,” he said.

Investment banker and stockbroker, Tajudeen Olayinka, echoed the same sentiments saying, “I think most of them may opt for mergers but the big ones would be able to find their way or even acquire some of the small ones.

“They (smaller banks) can also merge with the big ones and a few of them can come together to merge. That is likely to happen. We might even see some investors outside of the banking space come in to also acquire them. Some big-time investors are interested in coming into the space and giving the banks the required capital, just to make sure that they meet the required capital but that would be dependent on the leaning of the core investors in those banks.”

However, in an April 10 report on its website, Fitch Ratings also stated that small banks might struggle to meet the new threshold.

“Some small and medium-sized banks may struggle to raise the necessary capital, leading to increased M&A. This would result in a more concentrated banking sector, with higher barriers to entry, greater economies of scale and stronger long-term profitability,” FitchRatings said.

It added that “No Fitch-rated banks currently meet the new requirements. The combined paid-in capital shortfall for Fitch-rated banks is about NGN2.6tn ($2.1bn). We expect a marked increase in equity issuance over the next two years.”

READ ALSO  AfDB invests $10.9bn in Nigeria — DG

Fitch Ratings maintained that “Some small and medium-sized banks may struggle to raise the necessary capital, and could be acquired by larger banks. Certain domestic systemically important banks have particularly high capital ratios but are significantly below the new paid-in capital requirements, and may prefer to consider acquisitions over seeking fresh capital injections.”

It, however, said, “We do not expect licence authorisation downgrades to play a major role in meeting the new requirements as they would necessitate divesting foreign subsidiaries or disentangling regional branch networks.”

CBN had given banks three ways to meet the new threshold. They include injection of fresh equity capital through private placements, rights issues and/or offers for subscription; Mergers and Acquisitions; and/or upgrade or downgrade of license authorisation.

Banking stocks sell-offs

Sell-offs in banking stocks on the Nigerian Exchange during the two days of trading in the past week led to a loss of about N633bn despite strong earnings performance reports by the top banks.

This marked the first consecutive weekly loss on the equity market as the All-Share Index depreciated by 1.08 per cent to 102,312.56 points, with market capitalisation declining by 1.59 per cent to N57.864tn.

Some analysts blamed the market’s pullback on economic headwinds compounded by anticipation surrounding the publication of consumer price inflation data for March.

Similarly, investors continued their portfolio rebalancing activities amid the outcome of Friday’s NT-Bills auction, which offered attractive yields.

Trading activity was downbeat in the past week, as 1.132 billion shares worth N28.650bn were exchanged in 21,921 deals, lower than the 3.680 billion shares valued at N57.892bn that were traded in 40,726 deals in the previous week.

On the sectoral performance, it was a market-wide bearish performance as the banking index led the laggards by 7.22 per cent week-on-week, driven by adverse price movements in Zenith Bank, Guaranty Trust Holding Company, Access Holdings and FBN Holdings.

Trailing were the insurance (2.45 per cent), consumer goods (1.33 per cent), oil & gas (0.28 per cent), and industrial goods index (0.23 per cent), which got dragged by southward movement in Flourmills, Sunu Assurances, Dangote Sugar, Eterna Plc, Lafarge and Abbey Mortgage Bank, respectively.

At the close of the week, the best-performed stocks included Morison Industries, Oando, Transcorp, DEAPCap, and Omatek as their share prices trended upward by 21 per cent, 11 per cent, 10 per cent, 10 per cent, and nine per cent, in that order.

Furthermore, the top traded stocks by volume were United Bank for Africa (455.7m units), Zenith Bank (423.5m units), and GTCO (329.7m units), while Zenith Bank (N17.1bn), GTCO (N13.9bn), and UBA (N12.3bn) led in terms of value.

Looking ahead, analysts at Cowry Research said, “The current trend of corrections is expected to persist as market fundamentals change increasing volatility, portfolio rebalancing, and sector rotation by investors and fund managers. We think investors will closely monitor expected earnings numbers, published macroeconomic data and government policy direction for guidance.”


NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD



NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD

Immediate-Past Managing Director of the Nigerian Ports Authority (NPA), Mr. Mohammed Bello Koko has said the agency generated N541 billion in the first half of the year.

He said the agency also remitted N255 billion to the Consolidated Revenue Funds (CRF) within the first six months.

Koko said the performance of the agency in the first half of the year surpassed its year-on-year total revenue generation and remittances in any year, putting the cumulative revenue of the NPA between 2022 and the first half of 2024 at N1.423 trillion

According to him, his administration put in place sustainable reforms, especially a drastic improvement in the Turn-Around-Times of vessels and trucks in Apapa and TinCan ports.

He, however, said he is handing over a new staff clinic and five other completed projects to his successor for inauguration.

He confirmed that the NPA raised staff salary during his tenure, even as he pleaded with them (members of staff) to cooperate with and redouble their commitment to his successor.

The outgoing NPA MD, who dropped the hints in his valedictory remarks at the handover to his successor Dr. Abubakar Dantsoho at the agency’s headquarters in Lagos, said he felt fulfilled for improving NPA better than he met it.

He said: “We recorded an unprecedented growth in revenue generation and remittances to the Consolidated Revenue Fund (CRF) from Revenue of N381 billion in 2022 and N501 billion in 2023 to N541 billion in the first half of 2024 and remittances to CRF increasing from N93.4 billion in 2022 to N206 billion in 2023 and to N255 billion in the first half of 2024 – surpassing our year-on-year total revenue generation and remittances in any year.

“With unprecedented tax remittances to the Federal Government ranging up to N60 billion in the period of my stewardship, we raised the bar higher.

READ ALSO  AfDB invests $10.9bn in Nigeria — DG

“Our hope and prayers are for the new management to continue on this trajectory and surpass it. But we were also deliberate on dialogue and driving reforms.”

He listed some of his achievements in office to including all-round port efficiency.

Koko said: “We hit the ground running with the necessary approvals to get the Lekki Deep Seaport fully operational to retake the lost transit and transshipment cargo.

“Promoted the non-oil export drive of the President by setting up ten (10) Export Processing Terminals (EPTs), mainstreaming it to the NXP and e-call up system to facilitate exports, and the result is evident in the attainment of a foreign trade surplus, as highlighted in the NBS report for Q1 2024.

“Upgraded data center, servers, storage, and business continuity; established a data recovery and protection unit with an up-to-date data protection audit certification.

“Digitised staff attendance for accountability and improved productivity; ensured the sustainability and free flow of cargo by clearing the decade-long traffic gridlock menacing the Apapa and Tincan Island port complexes, and its environs.

“Provided aids to navigation such as buoys, fenders, and bollards across all the ports, and also enhanced seaside operations by providing marine crafts, pilot cutters, tugboats, mooring boats, etc to improve port efficiency.

“These led to a reduction in both vessel and truck turn-around times. The vessel TAT went down from an average of 6.5 days to an average of 5 days, while truck TAT went from an average of 10 days to a few hours.”

Koko also said he was happy to have attained 100 per cent Ease-of-Doing-Business rating by the Presidential Enabling Business Environment Council (PEBEC).

He said: “We also restored service boat management contract with attendant boost in revenue;

“Concluded the consultancy for the deployment of a Vessel Tracking System in conjunction with NLNG Shipping;

“Secured FEC approval for the expansion of the Snake Island Port and a willing private investment to the tune of $300m on this project;

READ ALSO  NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD

“Secured FEC approvals for the development of new ports such as ports of Ondo, Badagry, Burutu, and Snake Island expansion project, amongst other proposals that have reached advanced stages of review and approval;

“Consultancy for the development of the 25-Year National Ports Masterplan to guide investment and port expansion plans;

“Attained a 100% ease-of-doing-business rating by the Presidential Enabling Business Environment Council (PEBEC), despite having the most number of reforms;

“In addition to the aforementioned, we were also able to conclude with the FMMBE/BPP on the deployment of the Port Community System (awaiting a few processes before seeking FEC approval), and its corollary, the National Single Window, as well as propel the subject matter of port modernization to conclusive stages with the signing of the mandate letters for the reconstruction of TinCan Island and the comprehensive rehabilitation of Apapa, Rivers, Onne, Warri, and Calabar Port complexes, respectively.”

On the six projects being handed over to his successor for inauguration, Koko said: “We have also completed some key projects that are ready for commissioning. These projects are crucial to staff development and improved efficiency.

“Some of them include; the Staff Clinic at Lagos Port Complex; inter-agency building at TinCan Island Port to accommodate agencies in the port in one place to enhance operational efficiency; security mobile scanners at the Lagos Port Complex; administrative buildings of the Tincan, Warri, and Rivers Ports; Maritime Workers Union of Nigeria’s Headquarters; upgraded Revenue Invoicing Management System (RIMS 2.0); and employees e-medical records management”.

“Let me begin by appreciating all of you for the life-applicable experience of the last eight years of my sojourn in the NPA.

“Looking back, I would like to summarize this tremendous phase of my life as a learning curve and an abiding history or experience.

“As I bow out today, I feel fulfilled for two reasons. Firstly, by working with all of you here, we have repositioned the authority for greater operational efficiency and unprecedented revenue generation and remittance to the Consolidated Revenue Fund (CRF) of the Federal Republic of Nigeria.

READ ALSO  ‘Dangote has broken every boundary in business, let’s support him’ – Femi Otedola

“Secondly, my sense of fulfillment derives from the fact that we have achieved a lot and have made the Authority far better than we met it, and now handing over to a management team of distinguished professionals with the requisite character, competence, and capacity to sustain and indeed surpass the current performance trajectory.

“As many of us are aware, the Authority under the management team I was privileged to lead was able to position the Authority for improved efficiency, revenue generation, accountability, and adherence to international best practices in port management and operations.”

He thanked President Bola Ahmed Tinubu and former President Muhammadu Buhari for “the incredible opportunity to serve as the MD of the NPA”.

Unveiling his plans for port rehabilitation and modernization, Dantsoho said that priority will be given to total automation of NPA processes and adequate staff welfare.

He said: “We will continue the digital transformation of the Authority and reinforce the current efforts at deploying the Port Community System (PCS) which we believe is key to our dream of total automation of our processes, thereby eliminating leakages and corruption.

“The current efforts towards infrastructural renewal and development will be enhanced. In particular, we will drive: Port Rehabilitation and Modernization

“We will pay attention to the logistics that surround the arrival of cargoes along the port corridor, their receipt at the terminals and loading onboard ships in the most efficient way and also cargo evacuation from our ports.

He listed other targets as follows:

* Deep sea Ports Development, in order to unlock the full potential of the economy;

* Promotion of transparency, accountability and Ease of doing business in our ports;

*We shall enhance collaboration and communication between sister agencies and promote stakeholder engagement.”

Source: The Nation

Continue Reading


Renewable energy: FG partners China on local production



The Federal Government said it is set to localise the production of renewable technologies through partnership with China-based Sinoma International Engineering Company.

This formed the crux of discussions between Nigeria’s Special Presidential Envoy on Climate Action, Ajuri Ngelale, and the Executive Management of Sinoma International Engineering Company at its Beijing headquarters on Tuesday.

In a brief made available to State House correspondents on Tuesday, Ngelale said the discussions harped on the importance of localised production to reduce reliance on imports and promote economic growth.

The meeting, attended by Sinoma’s Board Chairman, Mr. Yin Zhisong, and President, Mr. Zhu Bing, covered various areas of mutual interest, including decarbonisation of mining practices, ecological support and restoration.

Ngelale hailed Sinoma’s expertise in decarbonisation of mining practices, ecological support, and restoration, as well as automation of manufacturing processes for carbon capture, utilization, and storage, wind blades, and other technologies.

The brief read, “On Tuesday, I held substantive discussions with the Executive Management of Sinoma International Engineering Company at their Beijing headquarters in the presence of the Board Chairman, Mr. Yin Zhisong, and the Company’s President, Mr. Zhu Bing.

“We covered a wide range of important areas of mutual interest, going into significant depth on each of the agenda items. The expertise Sinoma has developed in the decarbonization of mining practices with full ecological support and restoration, as well as the cross-cutting automation of several manufacturing processes for CCUS (carbon capture, utilisation and storage), wind blades, and other very important technologies — the production of which Nigeria is now moving swiftly to localize (assembly to end-to-end) — is awe-inspiring and a testament to what innovative, dogged and determined leadership can yield.

READ ALSO  NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD

“A very productive and consequential engagement today with more to follow in the days ahead.”

Ngelale said Tuesday’s talks will boost Nigeria’s renewable energy sector, create jobs and reduce greenhouse gas emissions, aligning with the country’s climate action goals

Source: The Punch

Continue Reading


Reps okay 70% gains from forex transactions by banks



Bill to create new state in south-east passes second reading at house of reps

The House passed the Finance Act, 2024 which seeks to impose a 70 per cent levy on the profits realized by banks from all foreign exchange transactions.

The Executive bill was adopted by members at the Committee of Supply chaired by Speaker Tajudeen Abbas.

According to report presented by Chairman, House Committee on Finance, Hon. James Faleke, the Executive provides for the imposition of windfall tax, assessment and review of profits declarations; and for deferred payment agreements for financial institutions by Federal Inland Revenue Service.

He explained that the Committee interacted with some Stakeholders including: Federal Ministry of Finance and Coordinating Economy, Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS) and Bankers Committee.

“The Joint Committee observed that the Banks enjoyed windfall as a result of Exchange rate unification policy of the Federal Government;

“That the windfall was as a result of FX allocation to selected commercial Banks.

“That the policy does not permit the use of the windfall for dividend payment.”

In its recommendations, the joint Senate and House Committee proposed that the application of the provision of section 30 of the Principal Act shall take effect from 1st January 2023.

“That levy shall be 70 percent on the realized profit from all exchange transactions of Banks.

“Any bank that fails to pay the windfall profit levy to the Service and has not executed a deferred payment agreement by 31st December, 2024, shall be liable to pay the windfall profit levy withheld or not remitted in addition to a fine of 10% of the levy withheld or not remitted per annum and interest at the prevailing Central Bank of Nigeria (CBN) minimum rediscount rate.

READ ALSO  NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD

Source: Tribune

Continue Reading


‘Dangote has broken every boundary in business, let’s support him’ – Femi Otedola



Billionaire businessman and chairman of Geregu Power PLC and FBN Holdings, Femi Otedola has expressed strong support for the chairman of Dangote Industries Limited, Aliko Dangote, and his refinery project.

Recall that a heated dispute between Africa’s richest man and Nigeria’s oil sector regulators has set many tongues wagging.

As the conflict heightened, Dangote offered to sell his oil refinery to the Nigerian National Petroleum Company (NNPC) Limited on July 22.

Reacting on Tuesday, July 23, Otedola on his verified X handle (formerly Twitter) emphasised that Dangote is the largest private sector employer of labour in the country, and his companies are among the largest taxpayers.

He tweeted: “My brother, the visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but in Kogi State. Additionally, he has established one of the second-largest fertilizer plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State. Furthermore, he has built a fertilizer plant in Lagos that already exports globally. Aliko Dangote is a titan that God created especially for mankind.

“Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers. In fact, the Dangote Group often pays more in taxes than the top banks combined. If not for him, we would still be importing cement. His contributions extend beyond industrial facilities to critical infrastructure, having built major roads such as the Apapa Oshodi-Owonrosoki Express Road, Wharf Road, and the Obajana-Kabba Road.

READ ALSO  ‘Dangote has broken every boundary in business, let’s support him’ – Femi Otedola

“Countries in the nascent stages of industrialization require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals—Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie, J.P. Morgan, and Henry Ford—THE MEN WHO BUILT America’s industrial landscape. These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation. Their contributions were immortalized not in the material wealth they amassed but in the enduring institutions and industries they established. These visionaries were also supported by their government, which recognized the importance of fostering local champions.

“Similarly, today’s tech giants like Microsoft and Tesla received substantial support from the US government. For example, in January 2010, the Department of Energy issued a $465 million loan to Tesla Motors to produce specially designed, all-electric plug-in vehicles and to develop a manufacturing facility in Fremont, California to produce battery packs, electric motors, and other powertrain components for powering these innovative vehicles. This initiative is part of broader efforts, such as the federal EV-charging program supported by the infrastructure law known as the National Electric Vehicle Infrastructure programme, or NEVI.

“In India, the government has been instrumental in supporting business titans like Gautam Adani and Mukesh Ambani. Their companies have received significant backing to grow and expand, contributing substantially to India’s economic growth and global business footprint.

“There are also records of emerging market countries like Vietnam, South Africa, Brazil, and China where their governments have supported local businesses to jump-start industrialization. In Vietnam, the government has provided various incentives to tech companies, fostering a rapidly growing technology sector. In South Africa, government support for the mining industry has been crucial in maintaining its global competitiveness.

READ ALSO  AfDB invests $10.9bn in Nigeria — DG

“Brazil has seen substantial government investment in its agricultural sector, transforming it into one of the world’s leading food exporters. In China, government backing for companies like Huawei and Alibaba has propelled them to global leadership in technology and e-commerce.

“In Nigeria, we have our own titans, and it is imperative that we recognize and support them. Aliko Dangote has broken every boundary in worldwide business and industry. His contributions are not just a testament to his brilliance but a beacon of what is possible when vision meets opportunity.

“Supporting local champions like Dangote is crucial for our national development and economic independence. Let us continue to foster and support these visionaries who drive our nation’s progress…

Source: The Nation

Continue Reading


AfDB invests $10.9bn in Nigeria — DG



AFDB’s investments in Nigeria hit $4.4bn, says DG

The African Development Bank (AfDB) has invested a total of $10.9 billion in Nigeria, with a current portfolio of $4.9 billion supporting projects in the public and private sectors.

According to Lamin Barrow, Director-General of the West Africa Region, AfDB, the bank’s cumulative financing approvals in Nigeria have reached $10.9 billion since it started operations in the country.

Barrow made this disclosure at the Second Interactive Session and Workshop on Developing Bankable Business Proposals/Business Plans for Youths in Agriculture, held in Abuja on Monday.

The event was part of the activities to celebrate the bank’s 60th anniversary with stakeholders.

Barrow noted that Nigeria is the AfDB’s largest shareholder, and the bank’s cooperation with the country has expanded over the years.

The AfDB’s investment in Nigeria spans various sectors, including energy and power, transport, water, and sanitation infrastructure.

“Over the last 60 years, the Bank has grown into a trusted partner and the continent’s premier development financial institution.

“Our cooperation with Nigeria has expanded over the years, especially considering that Nigeria is the largest shareholder.

“Since it started operations in the country, cumulative financing approvals has reached 10.9 billion dollars and our portfolio currently stands at 4.9 billion dollars supporting projects in the public and private sectors,” he said.

Barrow said the AfDB’s President, Dr Akinwumi Adesina, upon assumption of office eight years ago, prioritised the High 5–of Power, Feed, Industrialise, Integrate and Improve the quality of life for the people of Africa.

READ ALSO  NPA rakes in N541b revenue, remits N255b in first half of 2024, says outgoing MD

He said these were the accelerators for achieving the SDGs and the targets in the African Union’s Agenda 2063.

According to him, the projects and programmes supported during this period have impacted over 400 million people.

Source: Tribune

Continue Reading


Mercury Bank set date to close all accounts associated with Nigeria 



Mercury Bank has announced the addition of Nigeria to a list of countries prohibited from its banking services.

This decision aligns Nigeria with other countries on the ban list, including Afghanistan, Iraq, Somalia, South Sudan, Ukraine Liberia, Syria and 30 others.

Mercury Bank is a prominent America-based financial institution known for its tech-driven banking solutions.

Checks on the company’s website also confirmed that Nigeria is on the list of prohibited countries.

The company said it supports U.S. companies founded by people across the globe, as well as founders and venture capital firms.

However, the bank said it currently cannot open accounts for founders living in prohibited countries and regions.

The prohibition means businesses and individuals living in Nigeria can no longer open new accounts or conduct transactions through the bank.

This move is expected to impact a substantial number of Nigerian entrepreneurs and startups that have relied on the bank’s services for their financial operations.

Explaining the importance of Mercury Bank to Nigerian founders, Seye Bandele, CEO of PaidHR, a Nigeria-based HRTech startup, said the bank simplifies the process for startups in Nigeria to conduct business in the U.S.

“Mercury provides banking services for Delaware C companies, which is usually a requirement for the kind of investment that most founders raise money on,” he said.

“So Mercury provided those banking services whether you’ve been to the US or not, from the US or not, we use something called a registered agent to register your company in the US, and then that registered agent will give you a physical address that the bank use to create your bank account.”

READ ALSO  ‘Dangote has broken every boundary in business, let’s support him’ – Femi Otedola


Bandele said although Nigerians are caught in the middle of the policy, Mercury has also been subject to numerous regulatory and compliance checks by their authorities.

“So whatever the reasons for their policy, I understand is just how Nigerians are caught on the wrong side of it,” he said.

John Opeyemi, one of the bank’s customers, expressed his displeasure on X (formerly Twitter) on Monday.

Opeyemi said the bank had requested some documents a few weeks ago, which he promptly provided.

He said he was surprised to receive a notice of his account closure shortly after.

“We regret to inform you that, due to recent changes in how we determine account eligibility, we are no longer able to support accounts for businesses with associated addresses located in these countries,” Mercury’s message to Opeyemi reads.

“Please know that his decision was not made lightly. We apologize for the disruption this may cause, and our team is here to help you work through the account closure over the next few weeks.”

The bank also stated that the closure would take effect on August 22, 2024.

Other customers have taken to X to share their thoughts.


Continue Reading

Top Stories