NEWS AGENCY OF NIGERIA

FBN Holdings: Shareholders hail Alebiosu’s appointment

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By Rukayat Adeyemi/Grace Alegba

Shareholders of FBN Holdings Plc on Tuesday commended the proactiveness of the group’s Board of Directors in appointing an acting Managing Director for First Bank Nigeria Ltd., following the resignation of the former Chief Executive Officer.

They gave the commendations in an interview with the News Agency of Nigeria (NAN) in Lagos, emphasising the importance of continuity in the bank’s operations.

The Board of Directors of FBN Holdings on Sunday appointed Mr Olusegun Alebiosu as the acting Managing Director Chief Executive Officer (CEO) of First Bank Nigeria Ltd.

The shareholders expressed confidence in Alebiosu’s capabilities, citing his extensive experience within the bank and the broader financial sector.

Alebiosu, until this appointment, was the Executive Director, Chief Risk Officer and Executive Compliance Officer of the bank since January 2022.

His appointment followed the resignation of Dr Adesola Adeduntan, the former Managing Director and Chief Executive Officer of the bank, effective April 20.

Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), said that the decision of the board to appoint Alebiosu was in a right direction.

Okezie stated that it was a prerogative on the board of directors to immediately appoint someone to fill such a sensitive position so that the operation of the bank would not be affected.

“The company has to move on. Hence, the appointment by the board following the resignation of the former managing director,” he said.

According to him, the Adedutan’s resignation will not affect the growth trajectory or stability of the bank because the new acting managing director is also a strong hand within the bank’s system.

He lauded Adedutan for his service to the bank, noting that his resignation might not be unrelated to pursing and actualising personal ambitions as announced.

Also, Mr Sunny Nwosu, former National Coordinator, Independent Shareholders Association of Nigeria(ISAN), said that it was kind for the former managing director to have voluntarily resigned from the bank after serving for three terms.

Nwosu stated that such action showed that Adedutan had the interest of the bank, the board, the shareholders and customers at heart.

He expressed optimism that the acting CEO would excel in his new capacity, having been within the bank system and with the support of the board Chairman, Mr Femi Otedola, who is also highly experienced and influential.

The ISAN coordinator advised Alebiosu to get the support of the shareholders, customers, board, and other stakeholders of the bank and work closely with them to succeed.

The National Coordinator, Shareholders United Front (SUF), Mr Gbenga Idowu, said he would keep monitoring the performance of Alebiosu as the acting Managing Director of FirstBank

Idowu said that he believed Alebiosu was selected based on competence, noting that the board members who chose him must have done due diligence before reaching the decision.

He insisted that, while he does not like to dabble into management issues as a shareholder of the bank, he would keep abreast of the performance of the acting managing director.

“I will continue to watch him from now, to know what he is bringing to the table, and whether he will do better than Adeduntan or not,” he said.

NAN reports that Alebiosu has core competence also in oil and gas, project financing, agriculture, shipping and aviation.

He completed his Bachelors in Industrial Relations and Personnel Management at the University of Lagos in 1990, after which he obtained a Masters in International Law and Diplomacy from the institution in 1997.

The new CEO started as a graduate at the defunct Oceanic Bank in 1991.

From 2006 to 2011, he served as the Group Head of Credit Policy and Product Programmes at the United Bank for Africa.

He later filled the role of chief credit risk officer at the continental development finance institution, African Development Bank, in 2011.

At Coronation Merchant Bank Ltd., where he served until 2015, he similarly led the company’s risk management unit.

An alumnus of Harvard Kennedy School of Governance, Alebiosu is also an alumnus of Harvard Business School and Harvard School of Government.

He holds a Bachelor’s degree in Industrial Relations and Personnel Management, and also a Master’s degree in International Law and Diplomacy from the University of Lagos.

He obtained a Master’s degree in Development Studies from the London School of Economics and Political Science, and completed Advanced Management Program (AMP) at Harvard Business School.

Alebiosu also holds a Master of Science degree in Development Studies from the London School of Economics.

He has been a chartered accountant for over two decades and a fellow of the Institute of Chartered Accountants of Nigeria (ICAN).

He is an associate of the Nigeria Institute of Management, a member of the Chartered Institute of Bankers of Nigeria, and a member of the Nigeria Institute of International Affairs. (NAN)

Edited by Olawunmi Ashafa

CIBN backs bank recapitalisation for enhanced economic growth

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By Grace Alegba

The Chartered Institute of Bankers of Nigeria (CIBN) has expressed support for the planned recapitalisation exercise for banks in the country.

Ken Opara, President/Chairman of Council, CIBN, said this during the 2024 annual lecture of the institute on Tuesday in Lagos.

Opara said adequate liquidity within the banking system was fundamental to fostering sustainable economic growth and development.

He said that the recapitalisation would further help banks to deepen liquidity and guarantee access to credit needed for economic growth and prosperity.

He said that CIBN and the Nigeria Exchange Group (NGX) had formed collaborations toward building capacity for the recapitalisation of banks.

Opara added that the institute was also collaborating with Africa Guarantee Fund (AGF) for capacity building for SMEs, preparing them and building their capacity to access finance.

He called for more allocation of credit to the real sector, which was the foundation of the nation’s economic activities for increased liquidity.

Opara emphasised the need for addressing challenges faced by the sector to enhance its competitiveness against foreign counterparts.

To resolve the challenges, he urged the government to improve further the ease of doing business and infrastructural development, such as power, roads, and rail networks.

The CIBN president also called for industrial centres where companies could co-habit and share common infrastructure,
harmonise and reduce the various taxes and levies, including locating them in a single hub.

He said the theme, “Improving Availability of Credit in the Nigerian Real Economy: The Critical Importance of Liquidity”, was timely to address current challenges in the nation.

“As we navigate the complexities of our current economic landscape, it has become increasingly evident that ensuring adequate liquidity within the banking system is fundamental to fostering sustainable economic growth and development.

“The real economy comprises the agriculture, manufacturing, construction, and services sectors and serves as the tangible foundation of the nation’s economic activity.

“These sectors collectively represent the intricate web of goods and services that drive economic growth, create employment opportunities, and enhance the overall standard of living.

“Despite the significant relevance of the real sector, access to credit for such key sectors compared to other climes is relatively low,” he said.

He said a survey conducted in more than 40 economies and released by Statista in 2024 revealed that nearly 141 trillion dollars worth of credit was lent to the real sector in advanced economies in the second quarter of 2022.

He added that the figures were twice as high as the volume of credit to the same sector in emerging markets.

He commended improvements in liquidity within Nigeria’s real sector but called for increased credit to sector, particularly agriculture.

“According to data from the Central Bank of Nigeria, the Net Domestic Credit stood at 66.4 trillion Naira as of December 2022, showcasing the substantial credit extended by financial institutions to the real sector of the economy.

“This figure experienced a significant surge to 96.1 trillion Naira by December 2023, highlighting the tremendous potential for growth and development in the real sector,” he said.

He listed credit volume allocated to the key sectors, saying the agricultural sector had N5.8 trillion representing about six per cent of the total credit.

He said the manufacturing sector had N19.7 trillion, representing approximately 21 per cent of the total credit, while the services sector had N36 trillion, representing 37.4 per cent of the total credit.

“I humbly propose that we consider offering more credit to these key sectors and particularly the agriculture sector.

“It is for this reason, ladies and gentlemen, that the recapitalisation exercise is a welcome development.

“The recently announced upward review of the Minimum Capital Requirements of Nigeria by the Central Bank of Nigeria would further empower banks to extend more credit to the economy’s productive sectors,” he said.

The Guest Speaker, Prof. Graham Penn, speaking on the theme, explained how other developed countries were leveraging credit and the need for Nigeria to increase liquidity for economic prosperity.

Penn, a professor of International Finance Law at University College London, listed challenges and measures Nigerian banks, regulators and businesses could adopt to implement laws and regulations to facilitate true sale securitisation. (NAN)

Edited by Olawunmi Ashafa

Wema Bank unveils Hackaholics 5.0, empowers youth innovation

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By Grace Alegba

Wema Bank has launched the fifth edition of its tech competition, ‘Hackaholics’, to foster innovation and empower youths as well as startups in addressing societal challenges.

The bank made this known at a news conference to announce Hackaholics 5.0, on Thursday in Lagos, with the theme, “Meta-Idea: DigiTech Solutions for Africa’s Prosperity”.

The fifth edition of Hackaholics pledges a total cash prize of over N70 million for top innovators across Africa.

Hackaholics is an annual tech and innovation competition birthed by Wema Bank in 2019.

It provides a platform for young Nigerians with tech-driven ideas to bring their game-changing ideas to life, scale their ventures and access a wider market for these tech-enabled solutions.

The Executive Director of Retail and Digital Business, Wema Bamk, Mr Tunde Mabawonku, said the essence of Hackaholics was to bridge the gap in Africa’s macroeconomic landscape through innovation.

He said, “Our mission as a bank is very clear, ‘Empowering Lives Through Innovation’ and this is the exact purpose behind Hackaholics.

“Within the bank, we have transformed the status quo and redefined the standards with cutting-edge solutions and technology, hence our position as Nigeria’s most innovative bank, but we didn’t end there.

“With Hackaholics, we have taken our innovation drive outside the bank, empowering youth for success and facilitating the development of transformative solutions tailored to the needs of diverse Nigerians and even the African populace.

“By embracing innovation, fostering a culture of collaboration, and prioritising customer-centricity, we have and will continue to transform and position Wema Bank as a digital leader, in action, products and services.

“Our aspirations are not merely about implementing new technologies; they are about fundamentally transforming how we operate, to be Simple, Seamless, Convenient and Reliable in service to our customers.”

Mabawonku said that Hackaholics aligns with the sustainability vision of the bank, ‘Developing Digital Solutions for Societal Impact.’

According to him, this year aspires to expand into Pan-African frontiers, taking the magic from the Hackaholics train beyond Nigeria.

“So, how can we improve the health sector across Africa? How can we transform the education sector? How can we drive positive change across various verticals?

“Hackaholics is the platform that not only challenges creative minds and piques curiosity to bring those ideas to life but also provides invaluable tools and resources to amplify the ideas, taking them from Idea to Product for the world to benefit.

“Interestingly, Hackaholics itself came and began as an idea. Today, it has been metamorphosed into the formidable platform we see today.

“With Hackaholics, we are on the way to birthing and discovering another unicorn in Africa, and I hope that you will stick with us as this journey unfolds,” Mabawonku said.

Expatiating on the details of Hackaholics 5.0, Wema Bank’s Head of Innovation, Mr Solomon Ayodele, said that the theme was anchored on two principal factors.

According to him, these include the Meta Idea and African Prosperity.

“We are challenging the youth to develop extraordinary ideas that will proffer practical solutions to our local problems as Africans.

“This year, we are widening our scope across the six geopolitical zones in Nigeria, and we are also touching Africa.

“As you may know, we launched the Hackaholics Digital Summit last year, culminating the Hackaholics 4.0 journey in grand style.

“This year, you’re going to experience the Coachella of the tech industry at our Hackaholics 5.0 grand finale tech festival, and the journey begins today,” he added.

Ayodele also explained that this year’s Hackaholics would not be limited to entries from specific verticals.

“Any verticals you can think of will be accepted. Our focus for Hackaholics 5.0 is the brilliance of your mind, so we leave it to you to discover a problem area that matters and develop an innovative solution that will drive a positive impact.

“Our goal is to birth solutions that address diverse aspects of real-world challenges, and you have the opportunity to be a part of this transformative journey.”

 

Winner of the Wema Bank’s Hackaholics 4.0 edition, Mrs Jane Agbaohwo, Chief Executive Officer of IRETI Healthhub, said that she came up with a solution called Breast Beam, an innovative device, that helps to solve the problem of late diagnosis of breast cancer.

Agbaohwo said that the personal experience of her mother’s battle with breast cancer motivated her to take action and contribute positively by creating a device that could potentially help others in similar situations.

According to her, participating in the competition and winning proved to be a turning point for her.

The vertinary doctor explained that the support and guidance she received from the bank’s innovation team were instrumental in refining her business idea and preparing her for the challenges ahead.

She noted that the pre-pitch event with the master class provided her with valuable insights and skills needed to align her concept with industry standards and demands.

The grand scale edition will be executed over a six-month period, touring 10 universities across Africa and challenging the youth to pitch unique, innovative and practical Digi-Tech solutions.

This is to positively impact the acceleration of progress, development and prosperity not just in Nigeria but across the African continent. (NAN)

Edited by Olawunmi Ashafa

Firm x-rays Nigerian banking sector challenges, advocates export training

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By Grace Alegba

3T Impex Trade Academy, a trade consulting firm, on Saturday, identified critical skill gaps within Nigeria’s banking sector that were hindering the country’s export trade volume and economic progress.

These skill gaps were identified in the academy’s 2024 survey, titled, “Nigerian Trade Finance Skill Gap Assessment Survey”, which was unveiled in Lagos.

Dr Bamidele Ayemibo, Lead Consultant, 3T Impex Consulting Ltd., during the presentation of the survey, shared insights gathered from 716 banking professionals across 21 banks nationwide.

“This landmark survey has laid bare the existing skill gaps and challenges faced by professionals in the trade finance domain within the Nigerian banking industry,” he said.

Key findings from the survey highlighted significant challenges, including training deficits among 50 per cent of bankers, with only 12 per cent possessing trade certifications in trade services units.

Also, 38 per cent of bankers identified knowledge gaps as a major obstacle in managing international trade operations and financing, while 65 per cent demonstrated experience and knowledge gaps.

Ayemibo emphasised the impact of these skill gaps on banks and Nigeria’s overall trade volume, stressing the urgent need for targeted interventions to address these challenges.

He said that the lack of expertise affected banks and impacted Nigeria’s overall trade volume, which was lagging behind other developing countries with similar or even smaller populations like South Africa.

“The repercussions of this knowledge gap are manifold. Banks, which are pivotal in facilitating international trade transactions, face heightened financial risks due to inadequate understanding of payment methods, trade finance, and risk management.

“This lack of expertise may lead to inaccurate credit assessments. potential defaults and financial losses, thereby compromising the stability and profitability of banks and shaking confidence in the financial system.

“Moreover, inefficiencies in trade documentation, compliance, and understanding of trade rules can result in delays, errors, and non-compliance with regulatory requirements.

“Such shortcomings can tanish the reputation of banks and discourage foreign businesses from engaging in trade with Nigerian counterparts, further dampening the country’s trade prospects,” Ayemibo cautioned.

He further explained the importance of immediate action through tailored training programmes, curriculum enhancements, and policy interventions.

“Bridging these gaps is crucial not only for the growth and competitiveness of Nigerian banks but also for the overall economic development and prosperity of Nigeria,” he said.

Speaking with newsmen, Ayemibo underscored the necessity of a holistic approach to skill gap bridging, aligning banker training with monetary and fiscal policies.

He also emphasised the need for government support in export training to reduce the increasing ignorance of export opportunities among Nigerians, thereby stimulating mass job creation and economic growth.
He stated: “Ignorance of export among Nigerians was also increasing the “Japa” Syndrome, and the government can intervene with supporting export trainings for mass job creation and economic boost.

“There is a very serious need for the fiscal side to begin to consider export readiness for training the citizens, particularly those that have the capacity to be able to produce for export.

“Now the exchange rate is coming down. We need to sustain this tempo by increasing the number of exports.

“This means building capacity and growing the number of exporters in the country.”

Mr Gabriel Idahosa, President and Chairman of the Council at the Lagos Chamber of Commerce and Industry (LCCI), emphasised the significance of balanced trade for Nigeria’s economic prosperity.

“A trade becomes balanced when we are importing and exporting. If as country we are only importing and we are not exporting, then we can never have a balanced trade,” he said.

He advocated regular exports of Nigerian goods, services, culture, and tourism to spur mass employment and increase foreign exchange reserves.
He commended the management of 3T Impex Trade for its contributions to the specialised training.

Akin Morakinyo, Registrar, Chartered Institute of Bankers of Nigeria (CBN), who explained principles of trade balance, highlighted the importance of capacity building on the national development.

He also commended the academy for the survey, while pledging CIBN’s commitment and support to effort on capacity building.

The News Agency of Nigeria (NAN) reports that after unveiling the “Nigerian Trade Finance Skill Gap Assessment Survey”, certificates were presented to the academy’s graduands. (NAN)

Edited by Olawunmi Ashafa

Afreximbank, Govt. of Bahamas sign host country agreement

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By Okeoghene Akubuike

African Export-Import Bank (Afreximbank) and the Prime Minister of the Commonwealth of The Bahamas on Thursday signed the Afreximbank Annual Meetings (AAM) Host Country Agreement.

The News Agency of Nigeria(NAN) reports that the signing ceremony was held during a media briefing on Thursday in the Bahamas.

NAN reports that the 31st AAM2024 will be hosted in Nassau, Bahamas, from June 12 to 15, 2024 with the theme “Owning Our Destiny: Economic Prosperity on the Platform of Global Africa.”

Philip Davis, Prime Minister of the Commonwealth of The Bahamas, in his remarks, said the signing ceremony was an important boost for the Bahamas and Africa and the Caribbean (AfriCarabian) visions.

“It is with immense pride that we officially sign the agreement for the Bahamas to host the AAM in June.

“Our ancestral history is marked by strength in the face of adversity, duty and creativity amid scarcity and the pursuit of self-determination.

“Our dreams, hopes and aspirations are encapsulated in this moment as we look forward to a future where Africa and the Caribbean stand shoulder to shoulder not just in solidarity but for economic collaboration for mutual prosperity.”

Davis said the AAM2024 meeting in the Bahamas was a symbol of what Africa and the Caribbean could accomplish through duty and collaboration.

“ In today’s world amid economic and environmental challenges, instead of building more walls, we choose to build bridges of trade, innovation, financial integration and most importantly bridges connecting our people and culture.

He said the Bahama’s commitment to the mission was underscored by the preparations underway to ensure the AGM stood as a forum for dialogue and impact deliberations and collaborations.

“ We are setting the stage for discussions to aid us in navigating the challenges of our times which include inclusivity, and the digital transformation of our economy.

“For the bank and our partners, we extend our deepest gratitude for entrusting us with the honour of hosting this significant event.

“Together we are celebrating the spirit of partnership, economic union of dreams, dreams of our ancestors and dreams of future generations that we pledge to realise through unity, collaboration and mutual respect.”

Davis said that in November 2022 The Bahamas and  other Caribbean countries signed an agreement with AFreximbank to forge a future for the advancement of the African and Caribbean people and their economies.

The prime minister said Afreximbank’s commitment to expanding operations in the Caribbean was seen in its establishment of the Caribbean Africa Bank, adding that it was an example of potential for development in the region.

“ As we come for the meetings, it will be remembered for the decisions made and agreements signed but also more significantly as Africa and the Caribbean came together for a better future,” he said.

Prof. Benedict Oramah, President and Chairman Board of Directors, Afreximbank, said the signing of the agreement would solidify the partnership between Afreximbank and the Caribbean.

Oramah said the partnership would form a platform for global Africa to take its destiny into its hands.

He said he was grateful to the prime minister, the government and the people of the Commonwealth of the Bahamas for the honour of agreeing to host the AAM2024.

“ By holding the 31st AAM, we collectively make a strong commitment to elevating the collaboration between the Afreximbank, the Commonwealth of the Bahamas and the entire Caribbean region to a higher pedestal.

“It bears testament to the depth of your government’s appreciation of the importance of our unique partnership in catalysing shared growth and prosperity for all of Africa and the Caribbean.

“It affirms commitment to ensure inclusiveness and bring the bank’s services to the doorsteps of the people.

“Bringing the meeting to the Caribbean also offers us the opportunity to celebrate the progress we have made so far between Africa and the Caribbean.”

Oramah said the bank was working with the government of the Bahamas to develop an Afro-Caribbeann marketplace in the Bahamas.

He said, when completed, it would be a permanent marketplace that would house manufacturing warehouses, and be a distribution and logistic hub for various tradable merchandise that Africa and the Caribbean would produce.

“It will finally establish the Bahamas as a gateway into the Caribbean and we hope the government will work with us diligently to bring this project to completion.”

Oramah said no fewer than 4,000 participants were expected at the AAM2024 adding that the opening ceremony would be held on June 13, which would be attended by Heads of State and Heads of governments.

He said others in attendance at the meetings would be African/Caribbean leaders and senior government officials, African and non-African policymakers, corporate leaders, bankers, academics and other thought leaders.

Oramah said there would be keynote presentations by policymakers and economists and a dedicated session to showcase trade and investment opportunities in the Caribbean and the Bahamas as well as sessions on youths, innovations and the creatives.

He said the 3rd Annual AfriCaribbean Trade and Investment Forum (ACTIF2024) will be incorporated into the AAM2024. (NAN)(www.nannews.ng)

Edited by Vivian Ihechu

Zenith Bank PLC Building

Zenith Bank grows total assets to N20.4trn

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By Rukayat Adeyemi

Zenith Bank Plc says its total assets grew to N20.368 trillion for the year ended Dec. 31, 2023.

Mr Michael Otu, the Company Secretary of Zenith Bank, said this in the bank’s audited results for the year ended Dec. 31, 2023 sent to the Nigerian Exchange Ltd. (NGX) in Lagos.

This represents an increase of 65.78 per cent when compared to N12.286 trillion recorded in the same period of 2022.

The bank’s Profit Before Tax (PBT) increased by 179.63 per cent in the year ended 2023 to N795.962 billion, compared to N284.65 billion recorded in 2022.

Its Profit After Tax (PAT) for the year under review stood at N676.909 billion as against N223.911 billion posted in the previous year, representing an increase of 202.31 per cent.

Also, the bank’s gross earnings, which closed at N945.554 billion in the 2022 financial year, rose to N2.131 trillion as at Dec. 31, 2023, indicating an increase of 125.35 per cent.

The bank’s total liabilities rose to N18.045 billion during the year under review, representing an increase of 66.06 per cent, against N10.906 billion posted in year 2022.

Meanwhile, its Board of Directors has proposed to pay shareholders a total dividend per share of N3.50 from the retained earnings accounts as at Dec. 31, 2023.

The dividend will be presented for ratification by the shareholders at the next Annual General Meeting (AGM) of the bank.

The directors said the payment of dividends is subject to witholding tax rate of 10 per cent in the hands of qualified recipients. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa and Emmanuel Afonne

GTCO posts N609.3bn pre-tax profit

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By Rukayat Adeyemi

Guaranty Trust Holding Company Plc (GTCO) has reported a Profit Before Tax of N609.3 billion for the financial year ended Dec.31, 2023.

This represents an increase of 184.5 per cent over N214.2billion recorded in the corresponding year.

The group announced this in its audited financial statements for the year ended Dec. 31, 2023, sent to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) in Lagos.

GTCO’s loan book (net) increased by 31.5 per cent from N1.89 trillion recorded as at December 2022 to N2.48 trillion in December 2023.

The group’s deposit liabilities grew by 63.7 per cent, from N4.61 trillion posted in the year ended 2022 to N7.55 trillion at the close of year 2023 business.

The holdings balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N9.7 trillion and N1.5 trillion, respectively.

Also, the Full Impact Capital Adequacy Ratio (CAR) closed at 21.9 per cent, while asset quality was sustained.

The International Financial Reporting Standard (IFRS) nine stage three loans improved to 4.2 per cent in December 2023 from 5.2 per cent recorded in December 2022.

However, Cost of Risk (COR) closed at 4.5 per cent  from 0.6 per cent in Dec. 2022, as a result of worsening macros, which caused significant increase in Expected Credit Loss ( ECL) variables.

Commenting on the results, the Group Chief Executive Officer of GTCO, Mr Segun Agbaje, said the challenging operating environment of 2023 truly tested the business model put in place for the holding company, for both its banking and non-banking business verticals.

Agbaje stated that harnessing the group’s synergies yielded a strong performance and allowed the company to strengthen its foothold in banking.

He explained that GTCO also built viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers.

“Also important to our success is our relentless obsession with innovation and offering great customer experiences, as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld.

“In a landscape characterised by evolving regulatory reforms, global uncertainties, and heightened competition, we have continued to leverage our inherent strengths and capabilities to unlock significant value.

“Creating more opportunities for the businesses and individuals we serve.

“As we navigate the challenges and opportunities that lie ahead, we are confident that our robust underpinnings and focus on flawless execution will continue to drive sustainable growth across all our operations and deliver long-term value for our stakeholders,” he said. (NAN)

Edited by Olawunmi Ashafa

CIBN records N1.37bn profit, elects 23rd president

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By Grace Alegba

The Chartered Institute of Bankers of Nigeria (CIBN) has announced a historic net operating surplus of N1.37 billion for 2023, marking a significant growth from the N837.94 million recorded in 2022.

Its President, Dr Ken Opara, revealed this achievement during the institute’s Annual General Meeting (AGM) on Saturday in Lagos.

He said the net operating surplus, which was above one billion Naira earmarked for 2023, represented a 63.60 per cent growth.

The president, who also coordinated and chaired the annual general meeting, reeled out his achievements in ICT, revenue drive, capacity building, legacy projects, and support in ongoing economic policy reforms in Nigeria, among others.

“I am particularly delighted that our institute continued to wax stronger financially, notwithstanding the economic downturns and headwinds in the year 2023.

“It is on record that our institute for the first time crossed the one billion Naira mark by achieving a Net Operating Surplus of N1.371 billion in 2023 when compared with N837.943 million achieved in 2022, representing a growth of 63.60 per cent.

“Similarly, total revenue grew from N2.065 billion recorded in 2022 to N2.782 billion in 2023, representing 34.72 per cent growth, while total assets grew from N7.821 billion in 2022 to N9.119 billion in 2023.

“The cost-to-income ratio for the year ended December 31, 2023, stood at 50.72 per cent, down from 59.41 per cent in the corresponding period in 2022. This ratio is way below the approved Governing Council threshold of 61 per cent for the 2023 financial year.

“I am persuaded that with prudent and efficient management of resources, as well as diligent execution of our strategic plan, our institute will sustain this northward trajectory,” he said.

Opara, who took over leadership in May 2022, also announced a planned road show to flag off the collaboration with Pan-African Payment and Settlement System on April 25 in Lagos to promote exportation.

He explained how his administration, through teamwork, left indelible marks in the banking industry in an era characterised by disruptions, volatility in the economy, and other turbulence.

Opara, also the Chairman of Council, CIBN, explained youth engagement initiatives aimed at checkmating mass migration of the nation’s young professionals out of the country to other advanced economies.

He thanked CIBN members, stakeholders, family and friends for their support that ensured the success of his tenure.

The National Treasurer of the Institute, Mrs Mojisola Bakare-Asieru, represented by Mr Dele Alabi, second Vice President, presented the 2023 audited financial statements.

The external auditors, Rosewater Partners, after the presentation of facts and figures, affirmed that the financial position of the CIBN was in agreement with the book of accounts.

The Chairman of the CIBN Audit Committee also affirmed that the accounting and reporting policies of the institute were in accordance with legal requirements and ethical practices

The News Agency of Nigeria (NAN) reports that Prof. Pius Olanrewaju was elected as the new President of the institute, along with other elected officers for the 2024-2026 tenure.

The results of the 72-hour electronic voting election was announced during the AGM by Mrs Caroline Anyanwu, Chairperson of the CIBN Election Committee at Bankers House in Lagos.

The new president-elect was the immediate past First Vice President of the institute.

Olarenwaju, in his acceptance speech, described the outgoing president as “a great leader” who had positioned the institute on a path for growth and greatness.

He thanked the leadership and members of the institute while promising to build on the legacies of Opara, his predecessor, in office.

He promised to unveil his agenda during his inauguration at an investiture programme scheduled for May. (NAN)

Edited by Olawunmi Ashafa

 

Afreximbank logo

Afreximbank achieves outstanding financial results in 2023

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By Okeoghene Akubuike

Amid challenging operating environment, the African Export-Import Bank (Afreximbank) says it delivered exceptional financial results in 2023 well ahead of expectations.

This is contained in a statement signed by Vincent Musumba, Manager, Communications and Events, Afreximbank, on Friday.

Msumba said that largely propelled by the bank’s and its subsidiaries’ growth, the group’s results for the financial year ended Dec. 31, 2023, demonstrated a strong and resilient performance which surpassed the prior year’s results.

“It is noteworthy that this performance has been enhanced by the group’s ability to successfully execute its four strategic pillars.

“These pillars are focused on Promoting Intra-African Trade, Facilitating Industrialisation and Export Development, Strengthening Trade Finance Leadership and Improving Financial Performance and Soundness.”

Msumba said the bank’s net interest income reached 1.4 billion dollars at the end of the 2023 financial year, compared to 910.3 million dollars in 2022.

He said the 58.67 per cent increase was driven by the growth in interest income, which in turn was driven primarily by the growth in the bank’s portfolio of loans and advances.

“ Net Interest Margin grew to 4.96 per cent compared to the previous year’s level of 3.83 per cent.

“Due to global inflationary pressures and investment in human capital to support increased business activities, the group’s total operating expenses were 304.5 million dollars.

“This was 34.93 per cent higher than what was recorded in 2022.

“The capacity expansion and rise in expenditures were envisaged in the five-year 6th Strategic Plan, which is currently under implementation until December 2026.”

Msumba said the group’s total assets grew by 20.12 per cent from 27.9 billion dollars in 2022 to 33.5 billion dollars in 2023.

According to him, this is largely on account of increases in net loans and advances to customers and cash and cash equivalents.

Masumba said the group’s shareholders’ funds, which largely mirrored the bank’s shareholders’ funds, recorded a growth of 17.55 per cent to reach 6.1 billion dollars as of December 31, 2023, compared to the FY’2022 position of 5.2 billion dollars.

“Accounting for this growth were the 546.8 million dollars retained income (which is net of appropriated 2022 dividends) and the 349.8 million dollars fresh equity.

“This fresh equity was raised during the year as shareholders supported the GCI II programme, which aims to raise 2.6 billion dollars paid-in-capital (3.9 billion dollars callable capital) by 2026.”

Msumba quoted Denys Denya, Afreximbank’s Senior Executive Vice-President, as saying
“during the 2023 financial year, the Afreximbank Group exceeded the budget and significantly surpassed its 2022 performance.

Denya said the outcome was mainly driven by the bank’s and its subsidiaries’ achievements.

“ Our focus is steadfast on fueling industrial growth, boosting trade within Africa, and promoting exports with added value, which are crucial for the continent’s prosperity.

“We will continue to maintain a cautious balance between profitability, liquidity, and safety to ensure a decent net interest margin and deliver profitable and sustainable growth and quality assets.

“We are delighted to report results well above forecasts for the financial year ended 31 December 2023, and look forward to delivering stronger financial outcomes in 2024.”

Msumba said in 2023, the bank was ranked number one in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets.

He said this was a testament to the bank’s leadership role in facilitating capital from within and outside the continent.

“The bank also celebrated its 30th anniversary and inaugurated its Afreximbank Caribbean Office, a pivotal step in supporting the implementation of the partnership agreement between Afreximbank and the Caribbean Community (CARICOM) member states.

“in spite of Africa’s economic challenges and constraints, Afreximbank’s management and team demonstrated a focus on supporting member countries by offering customised programmes and facilities designed to address the continent’s distinctive needs.

“These efforts and interventions assisted member countries in meeting trade finance commitments, assessing crucial imports, boosting food security and commodity production, alleviating supply chain bottlenecks, and adjusting to challenges arising from climate change”(NAN)(www.nannews.ng)

 

Edited by Vivian Ihechu

African Development Bank’s Chief Economist, Kevin Urama

Debt for growth not bad, says AfDB

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By Lucy Ogalue

The African Development Bank’s Chief Economist, Kevin Urama, says debt for growth for countries on the continent should not carry any negative connotation.

Urama, who is also the Vice-President, Governance and Knowledge Management at AfDB, said this at a pre-media conference held virtually to herald the 2024 AfDB Annual Meetings.

According to him, the debt to GDP ratio in Nigeria is still sustainable, but the issue in Nigeria is with regards to debt to revenue ratio.

He, however, commended the President Bola Tinubu-led administration for initiating various strategies to improve revenue mobilisation in the country.

Urama said that by increasing the revenue mobilisation, the country would be able to rebalance that ratio and move forward.

“The point I need to make clearly is that debt is not a bad thing. Debt for growth is always the means for driving transformative growth in countries.

“The issue is not about the debt. It is about the quality of the debt. In terms of what you borrow, on what terms, how transparent they are and what you use the resources borrowed to do.

“If it is invested in growth enhancing infrastructure and productive infrastructure, you are going to be able to generate revenue to be able to repay the loans and also go ahead to grow your economy,” he said.

According to Urama, debt should not ordinarily carry negative connotations, only bad debt should cause such.

“So, debt is bad when you borrow on wrong terms, when it is not transparent and people don’t know what is happening.

“And when the resources are not used properly, then you can get into the debt sustainability challenge,” he said.

The AfDB vice-president said the Public Financial Management Academy of the bank was, however, established to assist countries not to get to the level of bad debt.

“So when you are borrowing, you know exactly when, who, what terms and how to use those loans in order to drive transformative growth in countries,” Urama said. (NAN)(www.nannews.ng)

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Edited by AbdulFatai Beki/Ismail Abdulaziz

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