NEWS AGENCY OF NIGERIA
Banking , Economy/Business

Access Bank Zambia completes acquisition of Cavmont Bank

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By Itohan Abara-Laserian

The board of Access Bank Plc on Wednesday announced complete acquisition of Cavmont Bank Ltd by its Zambian subsidiary, Access Bank (Zambia) Ltd.

Mr Sunday Ekwochi, the bank’s Company Secretary, disclosed this in a statement made available to the News Agency of Nigeria (NAN) in Lagos.

Ekwochi said the acquisition was completed after the bank fulfilled the key conditions, including regulatory approvals.

“The merger of Cavmont into Access Bank Zambia is expected to take place before the end of January.

“Following which Access Bank Zambia will emerge as a stronger well-capitalised banking franchise with improved scale and capacity to deliver sustainable and best-in-class financial services in the Zambian market,” he said.

According to him, the bank looks forward to realising the synergies from the transaction and achieving further growth of the combined platform to the benefit of all stakeholders.

“Growing our presence in Zambia remains a strategic priority for Access Bank and with the conclusion of the proposed merger with Cavmont, the bank looks forward to realising the synergies from the transaction,” he added. (NAN)

Banking , Economy/Business

FCMB names Yemisi Edun as Acting-MD

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By Lydia Ngwakwe

The First City Monument Bank (FCMB) has named Mrs Yemisi Edun as the Acting Managing Director of the bank in the interim, while Mr Adam Nuru is on leave.

This was  contained in a statement signed by the FCMB management and obtained by the News Agency of Nigeria (NAN) via the bank’s Twitter handle.

“In line with normal corporate practice,  Edun is Acting as the Managing Director of FCMB in the interim period, while Mr Adam Nuru is on leave.

“She has not been appointed as the substantive Managing Director,” the statement said.

Recall that Nuru volunteered to go on leave to enable the bank to investigate the paternity allegations against him.(NAN)

Business , Economy/Business

Acquisition: C&I Leasing assures minority shareholders of value enhancement

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By Chinyere Joel-Nwokeoma

C & I Leasing Plc on Wednesday expressed optimism that the emergence of Peace Mass Transit as the company’s majority shareholder would bring enhanced value creation for all its stakeholders.

Mr Andrew Otike-Odibi, the company’s Managing Director/Chief Executive Officer, gave the assurance at a virtual meeting on the loan stock acquisition by Peace Mass Transit Ltd.

Otike-Odibi said that the impact of the acquisition would be positive for all the company’s stakeholders.

C&I Leasing had on Tuesday notified the Nigerian Stock Exchange and the investing public of the purchase of 313,326,316 units of the Neoma Africa Fund L.L.C unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each by Peace Mass Transit Ltd.

The loan stock, when fully converted, will result in the issuance of 987,500,000 ordinary shares of the company which will represent 55.82 per cent of the issued shares of the company.

“C & I Leasing is 30 years, and in 30 years we have seen some board changes, we have seen a significant management change, where the former managing director handed over to the current managing director.

“C & I Leasing is going into yet another change. I will say that taking the business on its own, business structure and business model is very solid, the ownership of the business can only add value to that structure and that model.

“So, for the minority shareholders, I did not see any fear or any concern.

“Rather, I see a reason for value enhancement in the sense that the impact of this acquisition will be positive for all the stakeholders of the company,” he said.

He said that the company’s business model would not change with the coming on board of Peace Mass Transit.

“We will likely finetune the model to make it more rewarding to shareholders,” Otike-Odibi said.

Speaking on the loan conversion into equity, he said it would be concluded before the end of the first quarter.

He said that Peace Mass shareholding, after the conversion, would be in the region of 67 per cent.

Otike-Odibi said that Peace Mass bought some stake in the company during its rights issue of 2019, while the loan stock is 55.82 per cent.

He said that the purchase and eventual conversion of the shares would strengthen the company’s credentials in raising new equities.

“We see this as a new road into inviting more equity to the business; one of the things that have held the company back from raising additional equity has been the loan stock issue.

“With the loan stock being converted to equity now, it now helps the company to open up to raise additional equity,” he said.

On outlook for 2021, Otike-Odibi said that COVID-19 had brought out new opportunities for the company.

He said that the company would play more on digital space due to the emerging opportunities in the technology space brought by the COVID-19 pandemic.

The managing director said the company would create new businesses from the array of opportunities that came out from COVID-19. (NAN)

Economy/Business , Food Security

Kano State awards N314m contract to revive Watari Irrigation project –Official

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Kano State awards N314m contract to revive Watari Irrigation project –Official
Project
By Rabiu Sani-Ali
Kano, Jan. 6, 2021 (NAN) The Kano State Agro Pastoral Development Project (KSADP) has awarded a N314 million contract for the upgrading of the Watari Irrigation Scheme built 40 years ago to facilitate rice production.
A statement by Mr Ameen Yassar, Communication Specialist of the project, on Wednesday, in Kano, quoted the KSADP coordinator, Ibrahim Mohammed, as saying that the contract was awarded to Hajaig Nigeria Ltd at the cost of N314, 454, 625. 80.
“The scope of work includes repair of gully erosion on the embankment; desilting of the main canal and drainages as well as repairs of the reservoir.
“The project intends to open up 1,000 additional hectares of land, to enable more people in the area to engage in farming,” Muhammad said.
He noted that the Watari Irrigation Scheme, sited in Bagwai Local Government area of the state, was established to encourage rice and horticulture production, but that the dam and its auxiliary infrastructure had not been maintained since construction, in spite of its potentials for agriculture and rural development.
According to him, KSADP was being implemented with the support of the Islamic Development Bank (IDB) and the Lives and Livelihoods Fund (LLF), a development organisation.
He said the project was focused on enhancing crop value chain, livestock production, as well as livelihoods, while urging farmers and other stakeholders in the area to cooperate with the contractor to ensure speedy completion of the project.
The statement also quoted Mr Kaseem Hajaig, representative of the contracting firm, as assuring that the project would be completed within the three months provided for in the agreement. (NAN)
RSA/IKU/MMA
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Edited by Tayo Ikujuni/Mouktar Adamu
Economy/Business

Customs generates N1.5trn revenue in 2020

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By Mustapha Sumaila

The Nigeria Customs Service (NCS) says it generated the sum of N1.5 trillion for the year 2020.

The Customs’ Public Relations Officer, Mr Joseph Attah, made this known in a statement in Abuja on Wednesday.

Attah said the amount realised was over the target of N1,380,765,353,462.00 and also more than the sum of N1,342,006,918,504.55 generated in 2019 in spite the COVID-19 pandemic.

The spokesman quoted the Comptroller-General of Customs, retired Col. Hameed Ali, as saying the feat was a result of resolute pursuit of what was right and willingness to adapt to changes brought about by global health challenges occasioned by COVID-19.

Ali said the service revenue generation profile had continued to be on the rise annually as the ongoing reforms in the service insisted on strategic deployment of officers strictly using the standard operating procedure.

“We also insist on strict enforcement of extant guidelines by the tariff and trade department and Automation of the Customs process, thereby eliminating vices associated with the manual process.

“Others are robust stakeholder sensitisation resulting in more informed and voluntary compliance as well as increased disposition of officers and men to put national interest above selves.

“The partial border closure which has forced cargoes that could have been smuggled through the porous borders to come through the sea and airports raised revenue collection from ports.

“Before the commencement of the border drill on 20th August 2019, revenue generation was between four billion to five billion naira, but now NCS generates between five billion to nine billion naira daily.

“Diplomatic engagements that took place during the partial land border closure yielded many positive results, including commitment to comply with the ECOWAS Protocol on Transit and operationalisation of joint border patrols at both sides of the border.

“The teams are required to share intelligence and ensure prevention of transit of prohibited goods into the neighbor’s territory,” Ali explained.

The customs boss expressed readiness of the service to strictly implement the outcome of the diplomatic engagements as the land borders open for movement of cargoes.

He said that the intelligence gathered during the period and the introduction of the e-Customs whose components include installation of scanners at all entry points would enhance border security and boost national trade facilitation. (NAN)

Banking , Economy/Business

NSE market indicators rebound by 0.17%

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By Chinyere Joel-Nwokeoma

The Nigerian Stock Exchange market indicators on Wednesday rebounded by 0.17 per cent amid interests in some banking stocks.

The All-Share Index rose by 69.01 points or 0.17 per cent to close at 40,465.15 from 40,396.14 recorded on Tuesday.

Also, the market capitalisation which opened at N21.122 trillion inched higher by N36 billion or 0.17 per cent to close at N21.158 trillion.

The uptrend was driven by price appreciation in medium and large capitalised stocks, amongst which are Zenith Bank and United Bank for Africa.

Others include BOC Gases, Flour Mills and Vitafoam Nigeria.

Market breadth was positive with 23 gainers against 16 losers.

NEM Insurance led the gainers’ chart in percentage terms, growing by 9.69 per cent to close at N2.15 per share.

BOC Gases followed with 9.52 per cent to close at N11.50, while Japaul Gold rose by 9.46 per cent to close at 81k per share.

Linkage Assurance grew by 9.26 per cent to close at 59k, while Regency Alliance Insurance appreciated by 9.09 per cent to close at 24k per share.

On the other hand, Sovereign Trust Insurance dominated the losers’ chart in percentage terms by 8.33 per cent to close at 22k per share.

Eterna followed with a loss of 8.17 per cent to close at N5.28 per share.

Deap Capital Management & Trust shed eight per cent to close at 23k, while Royal Exchange and FTN Cocoa Processors depreciated by 7.69 per cent each to close at 24k and 60k per share, respectively.

However, the total volume traded declined by 46.41 per cent as investors bought and sold 249.55 million shares worth N2.18 billion in 6,090 deals.

This was against a total of 465.67 million shares valued at N5.12 billion exchanged in 7,573 deals on Tuesday.

Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 28.05 million shares worth N22.72 million.

Access Bank followed with 21.89 million shares valued at N190.43 million, while AXA Mansard Insurance sold 13.26 million shares worth N16.39 million.

United Bank for Africa accounted for 13.23 million shares valued at N113.09 million, while Transcorp transacted 12.79 million shares worth N12.13 million. (NAN)

Economy/Business

NSE lists best performing stocks in 2020

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By Chinyere Joel-Nwokeoma

Neimeth International Pharmaceutical Plc has emerged the best performing stock in 2020 in percentage terms, appreciating by 259.68 per cent, the News Agency of Nigeria (NAN) reports.

Statistics obtained from the Nigerian Stock Exchange (NSE) for the period indicated that the stock, which opened trading at 62k, rose by 259.68 per cent to close at N2.23 per share.

NAN reports that FTN Cocoa came second with a growth of 230 per cent to close the year at 66k compared with the opening price of 20k.

Airtel Africa trailed with 184.98 per cent to close at N851.80 from N298.90, while Livestock Feeds improved by 178 per cent to close at N1.39 against the year’s opening price of 50k.

Other top gainers are United Capital with 96.25 per cent; May & Baker 81.87 per cent; FCMB Group 80 per cent; Vitafoam 77.27 per cent; BOC Gas 74 per cent and Cutix 72.93 per cent.

Commenting on the market performance, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said 48 stocks closed the year upbeat with 11 of them growing their share prices by over 70 per cent.

Omordion said that the Central Bank of Nigeria (CBN)’s policies impacted positively on the stock market due to low return offered by the fixed income market.

He said that low capitalised stocks from agribusiness and healthcare sectors dominated the best performance table for the year 2020.

Consequently, the nation’s bourse closed 2020 upbeat, appreciating by 50.03 per cent with the All-Share Index crossing the 40,000 mark on the last trading day, in spite of COVID-19 pandemic.

Specifically, the All-Share Index, which opened trading for the year at 26,842.07, inched higher by 13,428.65 points or 50.03 per cent to close at 40,270.72.

Similarly, the market capitalisation rose by N8.098 trillion to close at N21.056 trillion from the opening year figure of N12.958 trillion.

On the flip side, Omordion said that 34 stocks closed the weaker, which was dominated by consumer goods stocks arising from the effects of the economic recession that led to weaker purchasing power among citizens.

Conversely, Arbico was the best performing stock in percentage terms during the review period having lost 70.66 per cent to close at N1.03 per share against opening price of N3.51.

Omatex trailed with 60 per cent to close at 20k compared with 50k opening price and NCR which opened at N4.50 dipped 56.44 per cent to close at N1.96 per share.

Axa Mansard dropped 46.97 per cent to close 2020 at N1.05 against the opening price of N1.98 and Afro Media lost 41.18 per cent having closed the year at 20k per share against 34k opening price.

Other top losers are Seplat 38.84 per cent, Deap Capital 37.50 per cent, International Breweries 37.37 per cent, Unilever 36.82 per cent and Guinness 36.77 per cent.

On market expectations in 2021, Omordion predicted that the NSE would likely maintain the positive trend until the end of 2020 full year earnings reporting season.

He said the trend would likely persist as no other investment windows would offer returns and yields that could match the dividend yields of some listed companies still selling below their fair value. (NAN)

Business , Economy/Business

SMEDAN trains over 10,000 young entrepreneurs in North East in 2020 

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By Ahmed Kaigama

The Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) trained more than 10, 000 young entrepreneurs in the North East region in 2020 on how to manage small businesses profitably.

Mr Isa Doguwa, the Zonal Coordinator, SMEDAN North East Region, disclosed this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Bauchi.

Doguwa said that compared to 2019, SMEDAN recorded huge success in terms of training and empowerment in the year under review.

“The agency is well known now with a lot of patronage from entrepreneurs in the region, it has trained and empowered more than 10,000 young entrepreneurs across the North East region.

“The training was a package to address the problems identified by SMEDAN leading to the failure of small businesses.

“We have taken time to train the young entrepreneurs on some deficiencies and we created a curriculum that would enhance their management skills.’’

Doguwa explained that beneficiaries were put through a sensitisation programme before the training on how to manage small businesses profitably.

“We like to reach as many Micro Small Medium Enterprises sector (MSMEs) as are crucial and imperative to achieve the goal of Micro Small and Medium Entrepreneurs (MSME)-led economic growth, industrialisation and job creation.

“The manual for the training includes how to become an entrepreneur, identity business opportunities, sales and marketing skills and how to secure capital to start a business.’’

Others, Doguwa said, were “to do business, how to keep business records, regulatory issues, developing business models and business plans’’.

According to him, the agency has a lot of packages on MSMEs development programmes for the entrepreneurs across the country.

He said that young entrepreneurs who have existing businesses were qualified to access grants through the process with commercial banks to manage their Micro Small Medium Enterprises (MSMEs).

The zonal coordinator said the intervention was to reinforce the agency’s commitment toward ensuring the ease of doing business for entrepreneurs.

He, however, called on all small and medium scale business holders to take advantage of the ongoing MSMEs mass registration taking place in the region and register. (NAN)

Economy/Business

Kwara wins $16.9m World Bank-supported programme

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By Afusat Agunbiade-Oladipo

The Kwara Government has won 16.9 million dollars in the 2019/2020 World Bank-supported State Fiscal Transparency, Accountability and Sustainability (SFTAS) programme for achievements.

The award is the highest ever achieved by the state since the initiative began in 2018.

The award was contained in statement issued by the Press Secretary, Ministry of Finance and Planning, Mrs Saad Hamdalat, on Tuesday in Ilorin.

She said the award came after the state satisfied the disbursements linked indicators (DLIs) as contained in the Annual Performance Assessment (APA) final report, submitted by the Independent Verification Agents (IVA) that had earlier visited Kwara.

“The DLIs include improved financial reporting and budget reliability, increased citizens engagement in budget process; strengthened Internally Generated Revenues (IGR); biometric and BVN used to reduce payroll fraud.

“Strengthened public debt management, improved debt sustainability and implementation of a tax compliance for individual taxpayers and businesses.

“This will also strengthen procurement function for COVID-19 or emergency situations and facilitate participation of SMEs in public procurement resilient recovery phase and publication and approval of amended COVID-19 response budget.

“The import of the foregoing is that the state is eligible to the total sum of 16.9 million dollars, representing performance-based grant for 2019 APA, with an earlier disbursement of five million dollars in November 2020.

“Of the balance of 11.9 million dollars, the state has received additional 9.4 million dollars on Jan. 4, 2021 and awaits the balance of 2.5 million dollars later in the month,” she  said. (NAN)

Economy/Business

OPEC, non-OPEC countries to increase production by 0.5mb/d in January

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By Edith Ike-Eboh

The Organisation of  Petroleum Exporting Countries (OPEC) and the non-OPEC countries have agreed to increase crude oil production by 0.5 million barrels per day (mb/d) in January.

The group reached the agreement at the 13th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference, on Tuesday in Vienna.

The meeting acknowledged the need to gradually return two mb/d to the market, with the pace being determined according to market conditions.

It reconfirmed the decision made at the 12th ONOMM to increase production by 0.5 mb/d starting in January 2021, and adjusting production to 7.7 mb/d from 7.2 mb/d.

The adjustments to the production level for February and March 2021 will be implemented as per the distribution detailed in a table.

It noted that production adjustments for April and subsequent months would be decided during the monthly ONOMM following the criteria agreed upon in the 12th ONOMM.

The meeting reiterated the need to continue closely monitoring market fundamentals, including non-DoC supply and its impact on the global oil balance and overall market stability.

It further noted that high conformity levels had contributed significantly to market rebalancing and stability.

“Between May and November, participating OPEC and non-OPEC countries contributed to reducing the global supply by approximately 1.9 billion barrels, including voluntary adjustments, and this has been key to the rebalancing of the market.

“The meeting drew attention to the exceptional year of 2020 as an outlier that distorts the latest five-year average of OECD commercial oil stock levels.

“It recommended retaining the 2015-2019 average as a more representative metric, while keeping the latest five-year average for the time being.

“Furthermore, the meeting expressed appreciation to participating countries, particularly the United Arab Emirates (UAE) and Angola, which have performed beyond expectation.

“At the same time, it reiterated the critical importance of adhering to full conformity, and compensating the overproduced volumes in accordance with the statements of the 11th and 12th ONOMM, in order to achieve the objective of market rebalancing and avoid undue delay in the process,’’ it said.

The meeting requested all underperforming participating countries to submit their plans for implementation of the required compensation for the overproduced volumes to the OPEC Secretariat by Jan. 15, 2021.

It welcomed Dr Mohammad Alfares, Kuwait’s new Minister of Oil and Minister of Electricity and Water, and expressed its appreciation to his predecessor, Dr Khaled A. Al-Fadhel, for his dedication to the DoC process.

It further decided to hold the next Joint Ministerial Monitoring Committee (JMMC) Meeting on Feb. 3, 2021, followed by a JMMC Meeting on March 3, 2021 and ONOMM on March 4, 2021 (NAN).

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