Shareholders of First Bank Holding Plc have approved the management decision to raise N150 billion in additional capital for future expansion and also the appointment of Femi Otedola as a non-Executive Director, among other resolutions.
The approval which was given at the group’s Annual General Meeting (AGM) held virtually today despite being served with an ex-parte order of interim injunction by the Federal High Court in Lagos.
According to the resolution passed by the shareholders, the capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.
Alhaji Ahmad Abdullahi, Group Chairman, FBN Holdings Plc, addressing shareholders at the meeting said the Group continued to push through difficult and economically challenging times, working with Board and Management teams across its subsidiaries to deliver strong topline revenues at year-end 2022.
“When we isolate the exceptional income from one-off recoveries made in the prior year, gross revenues grew by 31 per cent to close at N805.1 billion, driven primarily by higher net interest income (+59 per cent year-on-year) and supported by a marginal growth of 2 per cent in non-interest income.
“Our operating expenses grew by 9 per cent, less than the headline inflation rate of over 20 per cent. Despite the challenging environment, the Group was able to deliver a profit before tax of N157.9 billion.
He also told the shareholders that the balance sheet of the company remains strong, commanding a total asset base of N10.6 trillion, a customer deposit base of N7.1 trillion, and delivering decent returns on equity and assets of 14.5 per cent and 1.4 per cent, respectively.
Alhaji Abdullahi FBNH has revamped its risk management architecture which has continued to guide creation of risk assets and ensures that loans are extended to high-quality customers.
“This has been instrumental in reducing our non-performing loans (NPL) and in driving our NPL ratio down and within the regulatory threshold of 5 per cent. Working together as one team, the Group was able to internally generate N23.8 billion in cross-sell revenues by year-end 2022 (up 14 per cent from 2021),” he added.
Category: Business
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FBNH shareholders approve N150bn capital haul-up, Otedola as non-ED
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Allow us access banks’ autonomous window, BDCs appeal to CBN
President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe has urged the Central Bank of Nigeria (CBN) to immediately leverage the BDCs by allowing them access banks’ autonomous window and agency of international money transfer operators.
This, he said, will allow them to provide liquidity in the retail end of the foreign exchange market and help stop the free fall of the Naira occasioned by forex scarcity in the country.
Gwadebe also urged the CBN to reinstate its 2015 policy guidelines which allow the BDCs to effectively provide liquidity in the retail end of the market through the forex windows.
The 2015 policy guidelines allow the BDC operators to access foreign exchange from the autonomous window of the commercial banks as well as act as agents for diaspora remittances.
Gwadebe in his statement said BDCs are effective tools of the transmission mechanism of the CBN. “I quickly want to advise the apex bank to leverage on the BDCs and allow them access banks’ autonomous window and agency of international money transfer operators.
Gwadebe, who accused some of the International Money Transfer Organizations (IMTOs) of diverting diaspora remittances, said the commercial banks revealed that they don’t even see most of these remittances.
“Imagine you are the IMTO and then you are the one that will pay the beneficiary the naira, invariably, then I as well just give you the naira without paying you the dollar.’’
“Even the banks have been saying that they are not seeing the diaspora remittances that the fintechs have taken over. We had a meeting with the banks where we even tried to bring up the issue of diaspora remittances so that we can harness it and bring liquidity, but they said they don’t see it. That’s the truth of the matter, a lot of unlicensed online firms are in the process.’’
The black market rate fell to as low as N950/$1 last week, opening up about N200 disparity with the I&E window as demand continued to outstrip supply. Meanwhile, the official rate averaged N765/$1. -
Equity market continues negative trend, sheds N59bn
Domestic equity market on Tuesday sustained its negative trend, shedding N59 billion following declines in share price of Unilever Nigeria Plc, Eterna Plc, UACN, Dangote Sugar among othe
Market capitalisation of listed declined by 0.17 per cent to N35.356 trillion from N35.415 trillion reported the previous day.
The NGX All Share Index also depreciated by 107.37 basis points to 64928.98 points from 65036.37 points traded on Monday.
A review of the transactions during the day showed that Tantalizer led gainers table, gaining 10 per cent to close at N0.44 per share, Ikeja Hotel followed with a gain of 9.82 per cent to close at N3.13 per unit, Cornerstone Insurance added 9.30 per cent to close at N1.41 per share, TIP gained 8.82 per cent to close at N1.11 per unit, Linkage Assurance grew by 8.33 per cent to close at N0.91 per unit.
On the contrary, Eterna Plc recorded the highest loss with a drop of 9.86 per cent to close at N16.00, SUNU Assurance trailed with a loss of 9.62 per cent to close at N0.94 per share, Omatek down by 8.11 per cent to close at N0.34 per share, Unilever fell by 7.05 per cent to close at N14.50 per share while AIICO Insurance dipped by 5.63 per cent to close at N0.67 per unit.
Investors traded 280.468 million shares valued at N4.645 billion in 6296 deals against 259.041 million shares worth N4.204 billion exchanged hands the previous day in 5899 deals.
Trading in the shares of Transnational Corporation of Nigeria led market activities with 36.469 million shares valued at N147.502 million in 244 deals , United Bank for Africa followed with account of 23.242 million shares cost N475.416 million in 367 deals, AccessCorp traded 17.667 million shares worth N299.366 million in 375 deals, Sterling Bank exchanged 15.973 million shares cost N57.498 million in 190 deals while Japaul Gold traded 11.398 million shares valued at N11.015 million in 93 deals.
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AMAC, FCT IRS on collision course over double taxation
The Chairman of Abuja Municipal Area Council (AMAC), Hon. Christopher Zakka Maikalangu, has urged President Bola Ahmed Tinubu, security agencies and relevant authorities to intervene in calling the Federal Capital Territory Internal Revenue Service (FCT IRS) to order with regards to the collection of revenue belonging to the council.
Speaking to newsmen Tuesday at AMAC headquarters, Maikalangu, who was represented by the Supervisory Councilor for Special Duties, Mr Emmanuel Inyang, said that AMAC has not signed any agreement with FCT IRS with regards to revenue collection.
Maikalangu said that, even at a recent townhall meeting organized by FCT IRS for the six area councils in the FCT, with the aim of revenue harmonisation, the Permanent Secretary of the FCT, Dr Olusade Adesola, said he was the driver of revenue harmonisation, but left the meeting halfway and hence unable to answer questions, leading to the inability to reach any consensus.
The AMAC chairman said FCT IRS was harassing AMAC and FCT residents with the aim of their paying the same taxes they had already paid to AMAC, thereby opening ways to double taxation.
He said that the court had already ruled that AMAC should not pass over the role of revenue collection to a third party, hence the need for FCT IRS to explain from where it derived its powers to be collecting revenue on behalf of AMAC.
Maikalangu said that FCT IRS is preparing way for anarchy and a breakdown of law and order by harassing AMAC residents for revenue, including the “Park and Pay” policy that is the duty of AMAC.
The Council Chairman, therefore, urged President Tinubu and concerned authorities to, as a matter of urgency, call the FCT IRS to order before it plunges AMAC and the FCT into anarchy by harassing residents to pay taxes they had already paid to AMAC, even as far back as 2010.
Maikalangu said that the council remains law abiding and hence will not take laws into its hands, but warned that the council will not sit idly and watch FCT IRS engage in illegalities such as collecting revenue meant for AMAC.
Maikalangu advised residents not to pay revenue to agents purporting to be FCT IRS, otherwise they will pay double as only revenue paid into AMAC account will be acceptable.
In the same breath, Maikalangu urged AMAC residents not to pay revenue to FCT IRS, but to challenge any official from the Service to go to court for an order that will explain how it came about collecting revenue for AMAC.
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Nigeria’s intercity transport rises by 98.88% in June -NBS
The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 percent from N649.59 in May 2023 to N1,285.41 in June 2023, the National Bureau of Statistics (NBS) has said.
In its Transport Fare Watch of June 2023 posted on its website, the NBS stated that on a year-on-year basis, it rose by 120.63% from N582.61 in June 2022.
Analysts have attributed the astronomical increase to fuel pump price hike following the removal of fuel subsidy by President Bola Ahmed Tinubu.
Transport Fare Watch for June 2023 covers the following categories: bus journey within the city per drop constant route; bus journey intercity (state route) charge per person; air fare charge for specified routes single journey; journey by motorcycle (Okada) per drop; and water way passenger transport.
In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09% on a month-on-month basis compared to N4,002.16 in May 2023.
“On a year-on-year basis, the fare rose by 55.25% from N3,662.87 in June 2022. In air travel, the average fare paid by air passengers for specified routes’ single journey increased by 4.93% from N74,948.78 in May 2023 to N78,640.54 in June 2023. On a year-on-year basis, the fare rose by 40.22% from N56,082.64 in June 2022.
“The average transport fare paid on Okada transportation was N618.52 in June 2023 which was 33.14% higher than the rate recorded in May 2023 (N464.55),” the statistics bureau stated.
On a year-on-year basis, the fare rose by 48.34 percent when compared with June 2022 (N416.97).
For water transport (waterway passenger transportation), the average fare paid in June 2023 increased to N1,366.22 from N1,045.15 in May 2023. On a year-on-year basis, it increased by 44.84% from N943.26 in June 2022
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Toyota to begin production of longer-lasting EV batteries by 2026
Toyota has announced exciting advancements in batteries for electric vehicles (EVs), which are pointing to longer battery life by as early as 2026.
The breakthrough occurred on two fronts: increased optimization of lithium-ion batteries and advancements in solid-state batteries for EVs.
Findings for lithium-ion batteries will result in increased battery life and shorter charging time, common concerns among prospective EV buyers. Current EVs allow for approximately 330 miles on one charge, while the updated battery could handle up to 621 miles.
Solid-state batteries would take that even further, allowing for approximately 745 miles on one charge. Created for items like pacemakers and smartwatches, they are similar in structure to lithium-ion batteries but historically have not been durable enough to support EVs.
Toyota’s new breakthrough could put EVs with solid-state batteries on the market by 2027, and they have mentioned zeroing in on a more affordable manufacturing process — leaning more on automated processing than human labor on an assembly line.
Currently, it costs about half as much to power an electric car as it does a gasoline-powered vehicle. Public charging costs are expensed by the minute — meaning that with the breakthroughs in battery life, owning an EV will become even more affordable.
On top of that, there are federal and local monetary incentives depending on where you live, and EVs require less maintenance overall.
EVs also leave a much smaller impact on the environment. Just one electric car on the road can save 1.6 tons of pollution annually, while gas-powered vehicles produce, on average, over 10,000 pounds of harmful gases per year.
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Equity market opens week bearish, declines 0.44%
Transactions on the floor of the Nigerian Exchange (NGX) on Monday opened in the negative territory, shedding N157 billion.
The market capitalisation of listed equities declined by 0.44 per cent to N35.415 trillion from N35.572 trillion reported the previous day.
The NGX All Share Index also depreciated by 289.00 basis points to 65036.37 points from 65325.37 points reported on Friday.
An analysis of the Investment showed that Cornerstones Insurance led gainers table with 9.32 per cent to close at N1.29 per unit, Omatek followed with a gain of 8.82 per cent to close at N0.37 per share, TIP gained 8.51 per cent to close at N1.02, Chams Plc added 7.37 per cent to close at N1.02 per unit, RTBriscoe grew by 6.98 per cent to close at N0.46 per unit.
On the contrary Eterna Plc topped losers chart, dropping 9.90 per cent to close at N17.75 per unit, SUNU Assurance trailed with a loss of 9.57 per cent to close at N1.04 per share, UPL declined 9.24 per cent to close at N2.26 per share, FTNCocoa down by 8.44 per cent to close at N2.06 per share while Okomu Oil dipped by 5.66 per cent to close at N250.00.
The volume of trades declined by 230.649 million representing 47.10 per cent as investors traded 259.041 million shares valued at N4.204 billion in 5899 deals against 489.690 million shares worth N8.362 billion exchanged hands the previous day in 5804 deals.
Transnational Corporation of Nigeria led market activities with 41.760 million shares valued at N167.930 million, AccessCorp followed with an account of 18.155 million shares cost N312.692 million, GTCO Plc traded 15.566 million shares cost N585.099 million, Sterling Bank exchanged 14.186 million shares cost N50.996 million and United Bank for Africa traded 13.009 million shares cost N185.375 million.
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‘European refiners groan as Nigeria’s subsidy removal bites harder’
Petrol subsidy removal by the Bola Tinubu administration is impacting European refiners negatively as demand for the product has reduced by more than 50 per cent, S&P Global Commodities at Sea has said.Imports of petrol to Nigeria plummeted to 106,000 barrels per day, b/d in July from 205,200 b/d in May, according to data from S&P Global Commodities at Sea, after local petrol prices skyrocketed.
Total refined product demand has fallen 41 per cent in the same period, the data showed.
Scrapping the long-standing subsidy could save Nigeria as much as Naira 11 trillion ($2.6 billion) in 2023, according to estimates from the World Bank in June, providing relief to a growing government deficit.
Sinking Nigerian demand, driven by high fuel prices, has also led to a drop-off in demand for European exports, whose refiners had relied on thirsty West African markets.
“There is zero demand [in West Africa] at the moment,” a source in the region said.
Another European market source said: “Considering the [Nigerian] subsidy removal … demand is indeed depressed.”
The 91 RON FOB AR WAF discount to FOB AR gasoline cargoes was $89/mt on August 10, down sharply from before the subsidy was taken away. On May 22, the spread was at a premium of $50.25/mt, but by the end of the month had fallen to a discount.
The subsidy removal has shaken up longstanding arbitrage for European refiners.
While Nigerian demand in particular has diminished, other destinations have picked up the slack. The US Atlantic Coast made up 28 per cent of total petrol exported from the Amsterdam-Rotterdam-Antwerp region in July amid persistently low stocks, according to Kpler shipping data, increasing its share from the low teens almost in tandem with the shrinking Nigerian demand.
As a result, European refiners have been unfazed by sinking demand in West Africa. “The arb is strong. Octanes are tight, so petrol remains well supported” a trader in Europe said.
European traders already faced being crowded out by Russian refined products that have flooded into Africa — including Nigeria — since the onset of the war in Ukraine saw European countries boycott Russian oil products. Yet even Russian exports to Nigeria have fallen sharply since the fuel subsidy was scrapped.
Nigeria is Africa’s largest oil producer, with an output of 1.32 million b/d last month according to the Platts OPEC Survey from S&P Global, but a lack of refining capacity means the country is forced to import refined products.
One potential solution is the long-awaited Dangote refinery inaugurated by former president Muhammadu Buhari in April. The mega project, built by Aliko Dangote, is designed to make Nigeria self-sufficient in fuels, soften the gasoline market, and even to supply countries across Africa and beyond.
According to estimates from S&P Global, Nigerian gasoline production could overtake imports in 2025 and exceed them until the 2040s, if the refinery can get up and running.
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CBN resumes OMO on system liquidity
The Central Bank of Nigeria (CBN) is set to suck in some liquidity from the system as it last week resumed the Open Market Operation (OMO).
The immediate result was system liquidity slumping 51.8 percent week-on-week (W/w) to N33.8 billion.
Analysts at Afrinvest attest that the reduction was a result of the auctions conducted by the central bank at the OMO window and Treasury Bills (T-Bills) front.
“Nonetheless, OPR and Overnight (OVN) rates closed the week lower at 2.0 percent and 2.8 percent respectively from 5.8 percent and 6.8 percent”, said analysts at Afrinvest.
At the bond market, the bearish sentiment in the domestic bonds market extended last week, as average yield across tenors rose 21 basis points (bps) w/w to 13.3 per cent. The most selloffs were seen on short-term bonds as the average yield increased 51bps w/w. Similarly, the average yield on the mid-and long-term bonds advanced 21bps and 13bps w/w, respectively.
The domestic equities market sustained weekly gains, with the All Share Index (ASI) going up 0.2 per cent w/w to close at 65,325.37 points.
Consequently, market capitalisation increased N92.7 billion to N35.6 trillion, while Year-To-Date (YTD) return grew to 27.5 per cent (previously 27.2 per cent). Activity level faltered as average volume and value traded declined by 32.4 per cent and 15.3 per cent w/w to 348.2 million units and N5.0billion respectively.
Brent crude oil saw an uptick of 0.8 per cent w/w, to reach $86.88/bbl. This momentum was despite renewed economic concerns in China and a large inventory buildup in the US.
Meanwhile, Nigeria’s foreign reserves plunged 0.2 per cent w/w, reaching $33.9 billion as of August 10th, 2023…
On the global scene, last week was marked by the absence of substantial positive catalysts, the MSCI World Index experienced a 0.8 per cent w/w decline. In the US, the S&P 500 and NASDAQ indices fell 0.4 per cent and 2.0 per cent w/w respectively.
Analysts at Afrinvest said the drop was influenced by pressure on bank shares, triggered by Moody’s decision to downgrade the credit ratings of 10 small- to mid-sized banks.
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NIMASA moves floating dock to new Dolphin Jetty
The Nigerian Maritime Administration and Safety Agency (NIMASA)’s floating dock would be moved to its new site by a Nigerian-registered company, Melsmore Marine Nigeria Limited.
The floating dock will be moved from the Naval Dockyard to the waterfront of the Dolphin Jetty at the Nigerian Ports Authority (NPA) Dockyard which used to be the Continental Shipyard.
Mr Danny Fuchs, the Managing Director, Melsmore Marine Nigeria Ltd, confirmed the development in a statement on Friday in Lagos.
Fuchs said they were committed to executing their project.
“Our job is to move the Modular Floating Dock from the present location to the waterfront of the Dolphin Jetty at Apapa.
“THSD SEA LION which occupied the leased area at the water front have vacated the jetty now. We have a commercial understanding with NIMASA on how to execute this project,” he said.
He noted that they had submitted a feasibility study taking note of the mooring system required to anchor the modular floating dock at the Dolphin jetty.
Fuchs said the mooring system supplied by the manufacturers of the modular floating dock was made up of two steel piles of 36 meters length, two meters in diameter and a weight of roughly 48 tonnes each.
He said these massive piles need to be driven about 20 meters into the seabed, adding that they would bring their expertise to bear in carrying out the project.
“We also hope to invite the manufacturers, Damen Shipyard, to join forces in achieving this relocation project,” he said.
While addressing the officials of Melsmore, the Director General of NIMASA, Dr Bashir Jamoh, emphasised the need for them to review the action plan in the light of realities on ground with detailed deliverables, and key performance indicators with clearly stated timelines.
“Nigerians eagerly await the deployment of the modular floating dock. This is a national asset, which has potential to boost maritime trade, create jobs, develop skills, by providing training avenues to various maritime training institutions in Nigeria.
“It will also attract foreign investment and prevent capital flight, thereby generating revenue,” he said.