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Category: Business

  • Afreximbank To double Intra-African Trade Financing To $40bn By 2026

    African Export Import Bank (Afreximbank) is to double its financing of intra-African trade to 40 billion dollars on a revolving basis by 2026.

    This bank’s intra-African trade financing stood at billion dollars in 2021.

    Mrs Kanayo Awani, Afreximbank’s Executive Vice President, made the disclosure at the Intra-African Trade Fair 2023 (IATF) Nigeria High Level Business Roadshow in Lagos.

    The IATF 2023, scheduled for November 9 to Nov. 15, in Egypt, is organised by Afreximbank, African Union Commission and the Africa Continent Free Trade Area (AfCFTA) Secretariat.

    The event is a platform for businesses to access an integrated African market of over 1.3 billion people with a gross domestic product of over 3.5 trillion dollars created under the AfCFTA.

    Awani said that Afreximbank was not only spearheading the IATF to support AfCFTA, but was also at the forefront of supporting African trade and had developed several financing and facilitation instruments to support trade and investments.

    She said the bank was working with AfCFTA Secretariat to put in place AfCFTA Adjustment Fund to facilitate and provide support through financing, technical assistance, grants and compensation funding to AfCFTA state parties and private enterprises.

    The official said that this would aid adaptation and effective participation in the AfCFTA.

    “The Board of Afreximbank has approved and committed one billion dollars to support the funding of the initiative and 10 million dollars grant that will facilitate the establishment and operationalisation of the adjustment fund.

    “We are also partnering with the AfCFTA Secretariat and AU to ensure a successful implementation of the Pan-African Payments and Settlements System (PAPSS), with the view to facilitating the payment and settlements of trade transactions in local currencies.

    “This will address the challenge of currency inconvertibility and foreign exchange shortages that hamper intra-African trade,” she said.

    Awani added that Afreximbank was also leveraging digitalisation through the African Trade Gateway – a digital ecosystem created to facilitate intra-African trade.

    She said that the ecosystem comprised an integrated and function-specific set of platforms that would help to surmount impediments to cross-border trade.

    According to Awani, to facilitate the movement of goods, Afreximbank developed the Afreximbank African Collaborative Transit Guarantee Scheme to ensure seamless transportation of goods across multiple borders through issuance of a single technology-enabled transit bond.

    She said the scheme backed by one billion dollars commitment provided by Afreximbank, would lead to cost saving of more than 300 million dollars yearly.

    “We have also created an African Trade Facilitation Programme (AFTRAF) through which we are forging strong partnerships with African commercial banks to help them finance intra-African trade.

    “The Bank is also working with the African Association of Automotive Manufacturers (AAAM), African Union and the AfCFTA Secretariat to develop a viable automotive industry in Africa.

    “In this context, Afreximbank has developed a one-billion-dollar global automotive financing facility for the automotive industry.

    “We are also providing support in terms of facilitating the development of regional value chains and the implementation of the Continental Automotive Strategy that was adopted by trade ministers early this year.”

    She added that the bank was working with the International Trade Centre to train African companies including SMEs on how to export under the AfCFTA.

    “The training programme provides trade and market information to assist the businesses to identify export opportunities, how to comply with all the export requirements under the AfCFTA as well as how to access finance, payment and settlement, among others,” she said.

    Awani reiterated the bank’s commitment to working with member-countries to position them to take advantage of the AfCFTA.

    She said that in an effort to support Nigeria’s industrialisation and export development efforts, Afreximbank had invested over 36 billion dollars in the Nigerian economy since its creation in 1993 through its trade and projects financing.

    Awani said that the support covered a range of sectors and industries, including energy, transport, financial services, healthcare, manufacturing, and trade infrastructure.

  • Dangote Celebrates Africa’s Young Global Leaders

    President of Dangote Group, Aliko Dangote has hailed the Forum of Young Global Leaders describing it as a platform to develop the next generation of African leaders. 

    According to Dangote, the philosophy of Forum of Young Global Leaders aligned with his vision for a continent whose people are healthier, better educated, and more empowered through enhanced opportunities for social change through strategic investments that improve health and wellbeing, promote quality education and broaden empowerment opportunities for individuals and communities. 

    The Young Global Leaders programme is an accelerator for a dynamic community of exceptional young people from all over the world with the vision, courage, and influence to drive positive change in the world. 

    Dangote, who said this at the YGL Africa fellowship meeting in Lekki, Lagos said the essence of his partnership with the Forum is to engage young African leaders from small and medium enterprises (SMEs) and non-business entities who might otherwise not be able to participate in the Forum’s Young Global Leaders Community. 

    The fellowship covers the cost of their participation at World Economic Forum and YGL-led events for 6 years for each Fellow.

    Now in its 12th year, the Aliko Dangote (WEF Africa YGL) Fellows continue to represent the continent on the global stage and give back to their communities in a multiplicity of impactful ways.

    Following the partnership with Dangote 12 years ago, the programme has included 15-20 young leaders from sub-Saharan Africa following a rigorous selection process. At any one time, the African YGL Community consists of around eighty active members, 75 per cent of whom are eligible for the Dangote Fellowship.

    Speaking at the event, the Executive Director Dangote Industries, Fatima Aliko Dangote, expressed pride at the diversity and high proportion of female fellows in the 2023 Cohort, where the nine chosen YGLs represent the media/arts/entertainment, technology & innovation, health, and government sectors.

    Managing Director/CEO of the Aliko Dangote Foundation (ADF), Zouera Youssoufou, thanked the billionaire businessman for his continuous support of the YGLs, and assured him that his investment is not in vain, as the young global leaders are achieving exploits in their respective fields and living up to the expectations of being true African future leaders.

    He encouraged them to put in their best in their various fields and not be discouraged when setbacks occur, because those are to be expected. He encouraged them to continue raising their ambition for our continent because “Nothing is Impossible”.

    Aliko Dangote YGL Alum and Executive Director ofa African Youth Initiative Network, Victor Ochen from Uganda, commended Dangote for the aggressive investment noting that the project is a reflection of his faith in the continent.

    He further commended the billionaire businessman for his generosity in providing financial means for him to participate in forum events he otherwise would have been unable to do.

    He said, “I am so happy with what Dangote is doing in Nigeria and Africa as a whole. This is a man that is investing in the youth through his foundation and employing tens of thousands of Africans, in his various plants. I am so humbled to be here, and to learn from the expertise of this man whom God has blessed our continent with…I thank Dangote for his generosity, which has provided many young African leaders, regardless of the country, the much-needed financial means to participate in YGL events. Without the support of ADF, our active participation would not have been possible.”

  • Nigeria’s Equity Market Sheds N464bn Amid Profit-Taking

    The nation’s equity market Monday opened the week bearish, shedding N464 billion. The downward trend followed profit-taking in the shares of GTCO, United Bank for Africa, Zenith, AccessCorp, Nascon, NGX group and others.

    Market capitalisation of listed equities declined by 1.24 per cent to N36.831 trillion from N37.295 trillion reported the previous day. The NGX also depreciated by 847.16 basis points to 67296.18 points from 68143.34 points traded on Friday.

    An analysis of the investment showed that Northern Nigeria Flour Mills Nigeria Plc led gainers table, appreciating by 9.96 per cent to N13.25 per unit, Oando Plc followed with a gain of 9.74 per cent to close at N8.45 per share, CWG increased by 9.0 per cent to close at N6.30 per share, NPF Micro Finance Bank added 8.20 per cent to close at N1.98 per share while RTBriscoe up by 7.32 per cent to close at N0.44 per unit.

    On the contrary, ETranzact, Nascon and NSL Tech topped losers’ chart, dropping by 10 per cent each to close at N9.00, N52.20 and N0.27 per share respectively.

    Dangote Sugar Refinery followed with a drop of 9.98 per cent to close at N57.75 per unit while Learn Africa declined by 9.86 per cent to close at N3.29 per unit.

    Investors traded 520.133 million shares valued at N8.334 billion in 9914 deals against 483.489 million shares worth N8.340 billion in 6660 deals.

    Transactions in the shares of United Bank for Africa led market activities with 75.932 million shares valued at N1.049 billion, AccessCorp followed with 57.668 million shares valued at N957.323 million, Transnational Corporation of Nigeria traded 53.724 million shares cost N331.528 million, Zenith Bank traded 43.128 million shares worth N1.523 billion while FBNHoldings exchanged 26.573 million shares valued at N480.793 million.

    Zenith Bank declares N15.70bn as interim dividend to shareholders

    Zenith Bank Plc has declared an interim dividend of N15.70 billion (representing N0.50 per share) to be paid to shareholders for the half year ended June 2023.

    This was disclosed in the company’s corporate action announcement to the Nigerian Exchange Limited (NGX) on Monday.

    The Board of Directors of the company proposed the payment of an interim dividend in the sum of N0.50kobo per ordinary share on the issued capital of 31,396,493,786 Ordinary Shares.

    At its 32nd Annual General Meeting (AGM) in May, shareholders of the bank unanimously approved the proposed final dividend payment of NGN2.90 per share.

    This brings the total dividend for the 2022 financial year to NGN3.20 per share, with a total value of NGN100.47 billion.

    The board of Zenith Bank Plc had earlier announced a delay in the release of its 2023 Half-Year (HY) financial results due to post-audit issues.

    According to the statement signed by the Company Secretary, Michael Osilama Otu, the delay in the publication of the Audited Interim Financial Statements for the Half Year ended June 30, 2023, is due to some outstanding post-audit issues.

    The bank said the results will be delivered on or before September 14, 2023.

    The statement reads: “Zenith Bank Plc (the Bank) wishes to notify its shareholders, the Nigerian Exchange Limited (the Exchange), and the investing public of a slight delay in the release of the Audited half-year financial reports by the Bank for the period ended June 2023.

    “The delay is to enable the bank to attend to some outstanding post-audit issues in the course of approval of the financial statements.

    “The Bank is, however, optimistic that the Audited half-year financial reports will be submitted to the Exchange on or before September 14, 2023, and regrets any inconveniences this delay might cause its esteemed stakeholders.

  • BMW iX5 Hydrogen Completes Intensive Hot-Weather Testing

    The vehicles in the BMW iX5 Hydrogen pilot fleet, which were launched in February this year, have completed an intensive round of hot-weather testing in the United Arab Emirates for the first time.

    The car’s fuel cell drive system performed impressively in the face of temperatures rising to 45°C, as well as sand and dust, varying gradients and significant fluctuations in humidity.

    The highly efficient fuel cell system, the two hydrogen tanks, the electric motor and the power battery teamed up with the central vehicle control unit to demonstrate their outstanding performance and state of readiness.

    The Munich-based development team examined both the functionality of all the electric systems under the extreme conditions and the provision of the cooling power to enable the full performance of the vehicle. The vehicles were able to ensure the driving dynamics for which BMW is renowned.

    Vehicles from the pilot fleet are currently in action in Europe, Japan, Korea, China, the USA and the Middle East. The aim is to shine a spotlight on the everyday usability of hydrogen-powered vehicles, and beyond that to gain important knowledge for the development of a potential series-produced model.

    The BMW Group is using the pilot fleet to provide support on a regional level for the development of a refueling infrastructure which can be used with 700-bar refuelling technology across all categories of vehicle – from passenger cars and small vans to buses and heavy-duty commercial vehicles.

    Synergies between different areas of application also offer important scope for developing a strong network of suppliers in hydrogen technology and reducing costs.

    The BMW iX5 Hydrogen combines long-distance capability and short refueling stops with locally emission-free driving. Provided the relevant framework is in place, the hydrogen fuel cell technology has the potential to serve as another pillar in the BMW Group’s future drive system portfolio.

    As part of its ongoing transformation, the BMW Group is applying a “technology-open” approach when it comes to drive systems. The company is therefore adapting to different customer requirements, infrastructure standards and political and regulatory landscapes in the various regions of the world.

    This flexibility puts the BMW Group in the position to respond quickly to changing requirements in the markets in any situation and to present an attractive offer for as many customers as possible at all times.

    The BMW iX5 Hydrogen has a fuel cell system generating output of 125 kW/170 hp and a highly integrated drive unit using fifth-generation BMW eDrive technology (the electric motor, transmission and power electronics are grouped together in a compact housing). The output of the overall drive system is 295 kW / 401 hp.

    The hydrogen needed to power the fuel cell is stored in a pair of 700-bar tanks made from carbon-fibre-reinforced plastic (CFRP). Together, these tanks can hold around six kilograms of hydrogen. This storage capacity gives the BMW iX5 Hydrogen a range of 504 km (313 miles) in the WLTP cycle.

  • Diversify Export Earnings, Increase FDIs To Address Fx Liquidity Challenge -Uwaleke

    Professor of Finance and Capital Market, Uche Uwaleke, has said that except the Federal Government diversify its export base and increased foreign direct investments (FDIs), the liquidity challenge in the forex market would persist.

    Uwaleke, who gave the advice Monday in Abuja, added that the country’s weak economic indices would make it difficult for the government to implement the naira float. 

    In a bid to address the widening exchange rate gap, the federal government resorted to a managed float of the naira on the I&E Window. However, this policy has failed to halt the fall of the naira. 

    The exchange rate for a dollar to naira at the official window is N751.1 as of Monday, 11 September 2023, according to the data published by CBN. While at the parallel market, the naira exchanged for N925 to a dollar in Lagos.

    Experts have said that with a larger part of Nigeria’s revenue still coming from oil, it would not be easy for the government to address supply side constraints in the FX due to the country’s inability to meet it’s OPEC quota.

    “The only sustainable solution to deal with the liquidity challenge in the forex market is to have multiple streams of forex comprising export proceeds and foreign investments.

    “Nigeria’s economy is not ready for a complete float of the naira due to weak economic fundamentals.

    “Regrettably, over 90% of forex inflows still come from crude oil sales. A diversified export base is required to check volatility in a forex market where the exchange rate is determined by market forces. This is still lacking in Nigeria.

    “On the demand side, I support the idea of curbing dangerous currency speculation by making the trading in forex outside the Banks and BDCs illegal. By doing so, the CBN can be in a position to monitor activities in the forex market,” he said. 

  • NANTS Unveils Modern Abattoir, Meat Factory In Abuja

    The National Association of Nigerian Traders (NANTS) has inaugurated its state-of-the-art integrated abattoir and meat factory in Giri, located within the Gwagwalada Area Council of the Federal Capital Territory (FCT). This milestone was marked with a ceremony attended by prominent figures and representatives from various sectors.

    Madam Massanje Toure-Litse, the Commissioner for Economic Affairs and Agriculture in ECOWAS, presided over the inauguration ceremony and expressed her enthusiasm for the project’s potential impact. She noted that this innovative endeavor would serve as a model to be replicated in other ECOWAS member countries. The ECOWAS commissioner emphasized the organization’s commitment to collaborating with NANTS to enhance regional livestock trade, thereby contributing to the economic development of the West African region.

    Dr. Ken Ukaoha, the National President of NANTS, explained the primary objectives behind this ambitious project. He highlighted the urgent need for modernizing traditional methods of meat slaughtering and processing to meet stringent hygiene standards.

    The high capital investment required to establish modern facilities had long been a hindrance to achieving this goal. However, NANTS, with support from ECOWAS-RAAF and the Swiss Development Cooperation (SDC), embarked on this project to establish a cutting-edge abattoir.

    Ukaoha emphasized that the new abattoir would revolutionize the entire process of animal slaughtering, ensuring the sale of healthy meat to the public under meticulously hygienic conditions, prioritizing human health and safety.

    This integrated concept, implemented by NANTS, not only focuses on humane animal slaughter but also incorporates mechanisms for profitable waste conversion and capacity building initiatives involving public abattoir butchers. It is estimated that the project will generate approximately 500 job opportunities and significantly boost economic activities within the FCT.

    Moreover, the abattoir will serve as a training centre, imparting international best practices to butchers. Several state governments have already expressed interest in collaborating with NANTS to replicate similar projects in their regions.

    Alhaji Abu Giri, Chairman of the Gwagwalada Area Council, commended NANTS for its visionary project, emphasizing its potential as a training and consultancy centre for local institutions like the University of Abuja. He pledged continued support from the council for initiatives that promote trade and economic development in the area.

    Alhaji Musa Wakili, the Aguma of Giri, also hailed the project’s potential to empower youth within the community. He encouraged other associations to follow NANTS’ lead in pursuing similar economic development initiatives.

    NANTS had previously organized a capacity-building program, providing training on integrated modern abattoir practices, standards, and meat health safety regulations for 40 prospective workers at the facility. This training aimed to ensure the highest standards of meat hygiene, handling, processing, preservation, packaging, and logistics.

  • Unity Bank Suffers N35bn Loss On FG’s FX Policy

    Unity Bank Suffers N35bn Loss On FG’s FX Policy

    Unity Bank Plc’s profit in the first half of 2023 was impacted by foreign exchange revaluation on the back of Nigeria’s recent FX liberalization policy, resulting in the lender suffering a revaluation loss of N35 billion within the period.

    In the retail lender’s financials for the period, notwithstanding the FX liberalization policy and its impact on the bottom-line, the bank grew its FX trading income significantly by 17 per cent to N239.8 million from N204.4 million in the corresponding period of 2022, underscoring the Bank’s strategic focus on diversifying and growing its earnings portfolio.

    According to the bank, deposits grew to N333.38 billion, representing a marginal increase of 2 per cent compared to N327.42 billion recorded in the first half of 2022 in its Half-Year unaudited financial statement submitted to the Nigeria Exchange Group Limited.

    The net loans portfolio reduced significantly by 31 percent to N198.6 Billion as at 30 June 2023 from N289.4 Billion as at 31st December 2022. The Bank’s NPL Ratio remained moderate at below 3 per cent while liquidity ratio stood strong at over 45 per cent.

    The Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun noted that the significant disruptions which characterized the operating environment has impacted the positions of the Bank to the extent that we have constraints in income generation on the back of revaluation of the bank’s net foreign liabilities occasioned by the Naira devaluation during the period.

    Mrs. Tomi stated: “In the light of the prevailing FX revaluation in the financial system, what we have is a market-driven impact which is adjustable envisaged from the positive economic outcomes of the government policies in the near term.

    “Be that as it may, the negative shareholders’ fund has improved considerably through the injection of N135 billion which moderated the negative shareholders’ fund from (-ve) N275 Billion in December 2022 financial year-end to (-ve) N178 Billion as at the end of June 2023, after absorbing the FX revaluation loss suffered in the second quarter of 2023.

    “We are however, focused with clear-cut plans to close out on our recapitalization programme very soon to enable us do business as expected in the fast-growing markets in Nigeria”

    She further stated that while we remain optimistic that the government’s policy initiatives will lead to cause correction in the market, the Bank has accelerated measures to ramp up asset creation and liability generation in the short and medium term.

    “The Bank is aggressively driving its retail growth in every segment of the market, expanding strategic partnerships; and growing commercial banking business to develop new and sustainable income lines for the Bank as well as pay sufficient attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and product marketing to enhance value creation in the market.

  • FG Obtains $163m AfDB Loan To Boost Wheat Production

    FG Obtains $163m AfDB Loan To Boost Wheat Production

    The Vice President, Kashim Shettima has disclosed that the Federal Government had obtained 163 million dollars loan from the African Development Bank to support wheat production in the country.

    Shettima stated this at the palace of the Emir of Argungu, Alhaji Sumaila Mera, when he paid a condolence visit to the Emirate and family of late Sheikh Abubakar Giro.

    He re-affirmed the determination of the Tinubu administration to fulfill all its promises to Nigerians, particularly in the agricultural sector.

    The Vice President also assured that food security would receive serious attention from the government.

    “We have obtained 163 million dollars loan from the African Development Bank to support wheat production. The scheme would be launched soon.

    “We need 10,000 hectares of land in Kebbi State. But the scheme would be well executed in Jigawa State with a cultivation of 50,000 hectares of land to boost wheat production.”

    In his remarks, the Emir of Argungu, Mera, who prayed for the unity and progress of Nigeria, thanked President Tinubu and Vice President Shettima for their support.

  • CBN Approval Delaying Release of H1 2023 Statements -Access Holdings

    The board of Access Holdings Plc has announced that it is awaiting approval from CBN to release its Half-Year (HY) financial results for the period ended 30th June 2023 after completion of the audit of its subsidiaries.

    In a statement signed at the Nigerian Exchange Limited by the Company Secretary, Sunday Ekwochi, the results would be filed on or before September 30, 2023.

    “Access Holdings Plc (the Company) wishes to notify the investing public and the Nigerian Exchange Limited (NGX) of a potential delay in the publication of the Company’s Audited Interim Financial Statements for the Half Year ended June 30, 2023 (the Results’).

    The Company had, on August 14, 2023, requested and obtained the approval of NGX for the Results to be filed on or before September 15, 2023, subject to the approval of the Central Bank of Nigeria (CBN’), due to post-audit completion matters. In line with NGX’s approval, the Company had submitted the Results to the CBN for its approval.

    However, given the time estimated for the CBN to review the submitted Results, it is envisaged that the Company may be unable to meet the September 15, 2023 timeline for publication of the Results.

    Based on the foregoing, the Company has sought and obtained an extension of time to file the Results on or before September 30, 2023, subject to CBN’s approval of the Results.

    In mid-July, Access Holdings completed its acquisition of a majority stake in Finibanco Angola after receiving necessary regulatory approvals from CBN and Angola’s apex bank.

    The group noted that the bank had signed necessary agreements with minority shareholders of Finibanco Angola S.A. who expressed interest in selling their shares.

    With the completion of the acquisition, Access Holdings now owns more than 51 per cent stake in Finibanco Angola S.A.

    Also, Access Bank Plc (flagship subsidiary of Access Holdings) reached an agreement to acquire the sub-saharan subsidiaries of Standard Chartered Bank.

    In the acquisition deal, Standard Chartered will sell its shareholding in its subsidiaries in Angola, Cameroon, Gambia, and Sierra Leone to Access Bank as well as its consumer, private & business banking business in Tanzania.

    Recall that the Access Holdings’ initial delay in releasing its results was due to ongoing audit activities of the newly acquired sub-subsidiaries of the banking group.

    Following the completion of its audit activities, it is now seeking final approval from the apex bank before publishing its results to the investing public.

  • Foreign Telcos Reject New NCC Funds Repatriation Policy

    Airtel Nigeria and some other foreign telecom companies operating in Nigeria have rejected the Corporate Governance provision by the Nigerian Communications Commission (NCC) on the repatriation of funds.

    Section 14 (16) of the Corporate Governance Guidelines published by the NCC, which the operators are frowning at states:

    “The Board shall ensure a licensee seeking to repatriate funds over 30 per cent of its annual net profit shall obtain the prior written approval of the Commission.”

    Expressing their displeasure during a public inquiry on the draft guidelines, the telecom operators, including IHS Nigeria, ATC Nigeria, and Airtel Nigeria argued that the provision would discourage investments even as it contradicts existing laws on the repatriation of funds by foreign companies operating in Nigeria.

    In its written submission during the inquiry, a tower company, ATC Nigeria Wireless Infrastructure Limited, stated:

    “Repatriation of funds ensures that foreign investors successfully reap the dividend of their investment (particularly when the licensee has mainly foreign investors). Waiting for the approval of the NCC before funds are repatriated will lead to investor dissatisfaction and affect the smooth operation of the company.

    “We respectfully suggest that the approval of the NCC be obtained where the repatriation involves a significant amount that might jeopardize the company’s operations. The repatriation threshold that would require the approval of NCC be fixed at 80 per cent.”

    Expressing similar concern over the same provision, Airtel Nigeria in its submission to the regulator said the Section 14(16) Guidelines are in contravention of Section 15(4) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act Chapter F34, 1995 18 which guarantees unrestrictive transferability of returns from Foreign Direct Investment.

    “It is also at variance with the Federal Government’s policy guaranteeing 100 per cent repatriation of profit from investments in the country.

    This pre-approval requirement from the Regulator to repatriate more than 30 percent of net profit could discourage Foreign Direct Investment (FDI) in the industry.

    According to HIS Nigeria, the provision has far-reaching implications and would only create bottlenecks and discourage investments, both local and foreign.

    “Given that foreign shareholders and bondholders are entitled to receive dividends and interest respectively depending on the capital structure of the entities, the inability to timely meet interest repayments portends a negative connotation for the country especially as lenders would be reluctant to extend further credit to local borrowers and this eventually adversely impacts sovereign credit ratings.

    “Requiring prior written approval of the Commission to repatriate funds is unduly restrictive and at variance with the policy position of the current government administration which has expressed the desire to attract foreign investments.

    Meanwhile, the Nigerian Communications Commission in its response to the operators’ concern said it had taken note of all their submissions and would take care of it in its ongoing review of the document.