Category: Business

The United Bank for Africa (UBA) last Friday, officially added a new touch point to its network. UBA operates in 20 African countries and in the United Kingdom, the USA and France. The new branch in Afriland towers on the Lagos Island was commissioned by the Executive Governor of Lagos state, his Excellency Mr Babajide Sanwo-Olu and the Chairman of UBA, Mr Tony O. Elumelu. 

The Governor who congratulated the UBA management and Afriland for the beautiful edifice said the bank has remained a principal stakeholder in the development of Lagos, constantly creating jobs and opportunities for Nigerians.

The Chairman, UBA Group, Mr. Tony Elumelu, who received the Governor as well as the Oba of Lagos, Oba Rilwan Akiolu expressed gratitude to every other guest who took time off their busy schedules to grace the event.

He explained that the project to build the new business office in Afriland towers was borne out of the need to solidify past successes recorded by the bank, as well as create new vistas for the growth of businesses. He explained that Afriland properties, developers of Afriland Towers is set to develop new projects aimed at catapulting Lagos into the state of excellence.

He said, “It is interesting to note that Afriland has been developing some iconic properties, and today is a wonderful and joyous moment to see that this building which has a lot of rich history, is back to life. We call it the rebirth, and we appreciate all the planning that has gone into the creation of this beautiful and clean world-class masterpiece’. Elumelu hinted at plans of Afriland to develop more iconic properties in the near future, adding that given its expertise and its pedigree, the people of Lagos were in for a huge surprise.

Elumelu said, “Indeed, this is just a tip of what we want to do at Falamo in Ikoyi. We are going to develop a world-class integrated complex at Falomo, and everyone will be pleased at the outcome.

On his part, the Lagos State Governor, congratulated UBA and Afriland on the major feat of developing a beautiful edifice such as Afriland, adding that  Tony Elumelu is known for coming up with great ideas that boost employment opportunities for Nigerians.

He said, “This is a historic event today and it is a great honour to be here to see the kind of possibilities that can be achieved when you set your mind to it, and what you can turn an un-earning asset into. It is very interesting to note that that this house, formerly called the Raymond House has a rich history, and this is quite nostalgic for me because like some of you may know, I used to work with UBA and this place was the head office where everyone wanted to be because everything happened here. Im happy to know that it has such a rich history dating back to over a century ago.

Continuing Sanwo-Olu said, “I want to commend you and I am happy that Afriland has turned this into a very beautiful and modern 21^st Century building with a high level of detail, and beautiful structure. Infact, I call it a work-life like environment – this is what it should be, coming to an environment that caters for you in all areas and for your healthy living.”

While stating that the building was bringing back the old glory of Lagos, the governor added that it will put plans in motion to use the Afriland template to develop some of its old buildings.

“We plan to rebuild some of our old structures in Lagos state such as the old Oluwole market, the children’s hospital at Martins street, among others. We will also be building a cable car project into Lagos Island and all the buildings that have gone down will be rebuilt to meet up with international standards that Afriland has shown us here today,” Sanwo Olu added.

The Oba of Lagos, who congratulated UBA for continuing to contribute positively to the economy as a financial institution that cares about the communities in which it operates.

The Managing Director, Afriland Properties, Uzo Oshogwe, gave a brief history of Afriland Towers, noting the former Raymond House was built in 1886. She added that the rebirth of the Towers showed that the company believed in the potential that could be achieved at the edifice.

The new ultra-modern Afriland Tower Business Office is equipped with state – of – the art facilities, designed to ease banking transactions for its visitors. Facilities provided in the new office include ATM galleries amongst others

A former Relationship Manager with Guaranty Trust Bank Plc, GTB in Enugu, Onyekachi Nwosu was on Thursday, February 27, 2020 convicted and sentenced to Eighteen (18) years imprisonment by Justice D.V. Agishi of Federal High Court, Enugu on a six (6) amended count charge bothering on forgery, altering and giving a loan with defective collateral brought against him by the Enugu Zonal office of the Economic and Financial Crimes Commission, EFCC.

Justice Agishi, in her judgement, ruled that the prosecution team led by Mashal Umukoro Onome Esq. proved their case beyond reasonable doubt and that the convict had failed to extricate himself from the self evidenced proofs before the court.

EFCC, in the course of trial, called eight witnesses and tendered several exhibits to prove their case.
The convict was found guilty on all six count charge and sentenced accordingly. On count one and two, he was sentenced to five; while he is to serve two years each on counts three, four, five and six. The cumulative eighteen years prison terms will, however, run concurrently.

Investigation by EFCC revealed several professional misconduct by Nwosu who took undue advantage of his position as a Senior Bank Supervisor and account officer to forge a document titled LETTER of SET-OFF which he used to illegally grant a loan of N34,900,000 (Thirty Four Million,Nine Hundred Thousand Naira) to a customer and his company from several fixed deposits of other customers without their knowledge nor consent.

He was also discovered to have altered several account documents of his friend whom he illegally granted loan as to enhance his Visa application to United Kingdom.

In a clear show of its resilience and market leadership, Zenith Bank has announced an impressive result for the year ended December 31, 2019, with profit after tax (PAT) of N208.8 billion, achieving the feat as the first Nigerian Bank to cross the N200 billion mark.

According to the bank’s audited financial results for the 2019 financial year released in Lagos on Friday, profit after tax rose by 8% to N208.8 billion from the N193 billion recorded in the previous year.

The Group also recorded a growth in gross earnings of 5% rising to N662.3 billion from N630.3 billion reported in the previous year.  This growth was driven by the 29% increase in non-interest income from N179.9 billion in 2018 to N231.1 billion in 2019.  Fees on electronic products continues to grow significantly with a 108%  Year on Year (YoY) growth from N20.4 billion in 2018 to N42.5 billion in the current year.  This is a validation of the bank’s retail transformation strategy which continues to deliver impressive results.

Profit before tax also increased by 5% growing from N232 billion to N243 billion in the current year, arising from topline growth and continued focus on cost optimisation strategies. Cost-to-income ratio moderated from 49.3% to 48.8%.

The drive for cheaper retail deposits coupled with the low interest yield environment helped reduce the cost of funding from 3.1% to 3.0%.  However this also affected net interest margin which reduced from 8.9% to 8.2% in the current year due to re-pricing of interest bearing assets.  Although returns on equity and assets held steady YoY at 23.8% and 3.4% respectively, the Group still delivered an improved Earnings per Share (EPS) which grew 8% from N6.15 to N6.65 in the current year.

The Group increased its share of the market as it secured increased customer deposits across the corporate and retail space as deposits grew by 15% to close at N4.26 trillion. Total assets also increased by 7% from N5.96 trillion to N6.35 trillion.  The Group created new viable risk assets as gross loans grew by 22% from N2.016 trillion to N2.462 trillion. This was executed prudently at a low cost of risk of 1.1% and a significant reduction in the non-performing loan ratio from 4.98% to 4.30%. Prudential ratios such as liquidity and capital adequacy ratios also remained above regulatory thresholds at 57.3% and 22.0% respectively.

In demonstration of its commitment to its shareholders, the bank has announced a proposed final dividend pay-out of N2.50 per share, bringing the total dividend to N2.80 per share.

In 2020, the Group remains strategically positioned to capture the opportunities in the corporate and retail segments, while efficiently managing costs and expanding further its retail franchise employing digital assets and innovation.

Consistent with this superlative performance and in recognition of its track record of excellent performance, Zenith Bank was voted as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Most Valuable Banking Brand in Nigeria 2019 by The Banker. The Bank was also recognized as Bank of the Year and Best Bank in Retail Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and was ranked as the Best Digital Bank in Nigeria 2019 by Agusto & Co. Most recently, the Bank emerged as the Bank of the Decade (People’s Choice) at the Thisday Awards 2020.

In recognition of the significant role SMEs play in achieving sustainable growth and development in the economy of the country, Nigeria’s premier and leading financial services provider, First Bank of Nigeria Limited would host SMEs in its 2020 second edition of the SME Business Clinic. The event themed “Building a sustainable Business” would be held on 25^th and 27^th February 2020 in Port-Harcourt and Abuja respectively.

SMEs are encouraged to take the FirstBank SME diagnostic tool by visiting https://smeconnect.firstbanknigeria.com/ in order to stand a chance to be amongst the participants that will be in the SME Business Clinic in Port-Harcourt and Abuja. The FirstBank SME diagnostic tool is designed for SMEs to check the health of their business, better understand it and drive profitability. The SME Clinic will feature one-on-one business advisory services, mentoring, networking opportunities and participants will also be acquainted with the requisite knowledge and business tools needed to drive efficiency in the day-to-day operations of their business.

Speaking on the event, Gbenga Shobo, the Deputy Managing Director, FirstBank, said “at FirstBank, we are proud of the giant strides we have taken over the years towards enhancing the SMEs for their businesses to thrive, have a fair play in the market and contribute to the Gross Domestic Product of the country. We remain the trusted financial partner of SMEs and reiterate our resolve to be known as the brand that enables their success; much the same way that we have for over 125 years enabling Nigerians and the economy at large”.

The coaches at the event are Seye Olurotimi, Lead Consult at Cedar Tribe Limited, an SME branding expert and business growth consultant with vast experience helping SMEs grow effective brands and Robert Yakubu, founder of the Instabiz Academy and the Business Mastery Program, a digital entrepreneur and business strategist empowering entrepreneurs, marketers and business professionals in Port-Harcourt and Abuja respectively.

The SME Clinic session is organized in partnership with SME Traction, a leading business coaching platform aimed at empowering SMEs to make informed choices about their businesses, thereby facilitating growth and bolstering their contribution to the development of the economy.

Expressing her delight on the impact the inaugural SME Clinic has had on her business, the CEO, Nibbles Plus More Ventures, Owoeye, Oluyomi, stated that “the first step I took after the SME business clinic was do a strategic road map for my business. Riding on the information I got from the business trend session on consumer landscape, I had a clearer understanding of who my target audience are and have included that in my business plan. The feedback we believe will help us identify untapped markets and problems in our industry, how to reach them and what value we can offer them”.

Like we were told at the clinic, progressing into the counter intuitive zone of the business model reinventing box is what brings about Innovation. Something must trigger innovation and not just our intuition. Hence, we have chosen research, she concluded.

Managing Director, Ecobank Nigeria, Patrick Akinwuntan says the Ecobank Agribusiness Summit was an initiative to create a common platform that brings together partakers in the Agric value chain, be it producers, processors, logistics entrepreneurs, insurance practitioners and others within the sector to think a better approach to agriculture sustainability for Nigeria. The bank Managing Director stated that Ecobank believes food security is critical, as it enhances national security, and to ensure our continuous survival as a country, we must put agriculture in the front burner.

 “Agriculture is not just a culture, it is a business. Historically, Agriculture used to be the lead within the economy, before the advent of petroleum, now, we understand that the long term sustainability of the economy can only come from Agriculture, because of its ability to create employment for the teeming young population and its ability to integrate all the parts of the country. When it is Agriculture, there is no North, West, South and East, it is all about where do I get the best item, best quality, best value. In addition, given the landscape in Nigeria, given  the population within Nigeria, we are a natural market and so when you look at what the Government and the central bank has been promoting in the last four to five years, a lot of focus have been  on supporting Agric as a means to reduce the import bill of Nigeria and ultimately increase the export revenues of Nigeria”.

“Ecobank saw the opportunity that Agriculture provides and we decided that working together on the policies provided by the Central Bank and in partnership with Vanguard Newspaper, we established this national Agric summit as a platform to bring the entire ecosystem of the  Agricultural  sector together to interface to get the best value for the growth of the sector in Nigeria.  Naturally as a bank, we know that participants in the Agric sector need to be financially included, we will therefore give them the ability to open an account instantly on their mobile phones so as to have the ability to make payment for farm needs and to also collect their proceeds from anywhere. We believe “you can stay somewhere in Niger State, sell to someone in in Lagos and through our secured  platform, the person in Lagos will pay and you will receive your alert in Niger state before you release your goods from your farm in Niger state. That type of integration is what Ecobank brings to bear by bringing the entire participants; producers, processors, logistics, insurance and other participants in the sector unto a platform, the national Agric Summit, established by Ecobank”.

Further, Mr Akinwuntan stated that Ecobank’s relevance to Africa would mean supporting growth in the mainstay of the continent’s economy, which is agriculture. “Agriculture ensures that our survival is guaranteed. Agric is available in every corner of Nigeria, be it fishery, to poultry, to arable farming . Be it Cocoa, maize, rice, cashew nuts, palm oil, or any of the Agric items that you know that is available in Nigeria and these can be produced on a higher scale”  he stated.

Also speaking,  Dr. Andrew Nevin, Partner -West Africa Financial Services Leader and Chief Economist at PWC said reshaping Nigeria’s Agribusiness Landscape will require us integrate agriculture value chain to manufacturing, invest in agriculture infrastructure and mechanization, see agriculture as a business in the form of capacity building and education, and enhance crop yields and output and also instigate Land reforms and integration of national and sub-national policies.

Dr. Andrew Nevin who spoke on the topic “Unlocking productivity and investment opportunities across Nigeria’s agribusiness value-chain”, also maintained that there’s need for  interventions to overcome agriculture financing challenges and risks in the area of Capacity development – that is offer training to farmers and advise them on how to undertake farming as a profitable business; Develop agricultural customized loan products that are relevant to farmers’ needs – this could enable farmers to borrow and repay loans successfully; De-risk through financial and entrepreneurship education; Establish strong partnerships and alliances to promote investment in Agriculture and deployment of high-end technology to enhance efficiency and convenience of access

He noted that the UN expects agricultural production to rise by 69% between 2010 and 2050 to meet the expected increase in demand.  Farmers, he said  are therefore required to start implementing advanced technological techniques to boost productivity.

The maiden Ecobank Agribusiness summit in partnership with Vanguard Newspapers had exhibitors and hundreds of participants from within and outside the country in attendance.

Tony O. Elumelu, CON, has congratulated the African Development Bank (AfDB), and AfDB President Akinwumi Adesina, on their commitment to African entrepreneurship, with the disbursement of $2.5million seed capital to the AfDB-sponsored beneficiaries of the 2019 TEF Entrepreneurship Programme. $2.5m was released today, with the remainder expected to be disbursed to the entrepreneurs in Q12020.

The AfDB commitment follows the recent $8.5 million disbursement from the United Nations Development Programme (UNDP) to 2,648 entrepreneurs in the Sahel region and Africa more broadly, and further accelerates the economic empowerment generated by the Tony Elumelu Foundation. In 2019, the Foundation significantly increased the scale and reach of it impact, with the number of beneficiaries of its flagship Entrepreneurship Programme rising from its annual commitment of 1,000, to 5,150, in collaboration with global and African partners.

 With its commitment to strengthen small and medium-sized enterprises and develop young entrepreneurs, AfDB joined the growing list of global development institutions benefiting from the Tony Elumelu Foundation’s unique model of identifying, training, mentoring and funding entrepreneurs and start-ups across Africa. The partnership demonstrates the implementation of the AfDB’s ten-year “Jobs for Youth in Africa” strategy, launched in 2016, to support the creation of 25 million meaningful jobs across the continent.

The partnership illustrates TEF’s willingness to share its infrastructure and know-how, with others who share the mission to empower young African entrepreneurs and TEF’s goal of creating millions of jobs, as well as generating billions in revenue, to catalyse economic growth across the continent.

The Foundation is currently accepting applications to the 2020 cohort of its flagship Entrepreneurship Programme on TEFConnect.com, Africa’s digital hub for entrepreneurs.