Cloned Nigerian Anchor

Author: Chike Ozohili

  • FBNHoldings Declares N270bn PBT In 9 Months

    FBNHoldings Declares N270bn PBT In 9 Months

    FBNHoldings Plc has reported gross earnings of N985.6 billion for the nine months financial year ended September 30, 2023.


    The amount represents an increase of 80.1 per cent compared with N547.2 billion achieved in the corresponding period of 2022.

    The group’s profit before tax rose to N270.3 billion from N105.5 billion in 2022, representing 156.3 per cent from N105.5 billion recorded the previous year while profit after tax grew by 159.2 per cent to N236.4 billion from N91.2 per cent posted in the preceding year.

    Analysis of the result showed that Interest income increased by 71.1 per cent to N633.8 billion against N370.4 billion recorded in the corresponding period of last year while net interest income went up 51.4 per cent to N377.7 billion from N249.5 billion in the preceding year. Non-interest income rose by 108.2 per cent to N326.90 billion against N157 billion in 2022.


    Commercial banking segment of the company within the period reported N922.2 billion growing by 79.8 per cent year on year from N512.9 billion achieved in the comparative period of last year.


    The bank’s profit before tax went up by 157 per cent to N248.5 billion from N96.4 billion while profit after tax stood at N221.1 billion against N85.7 billion in the preceding year, indicating 158.2 per cent growth year on year.


    Commenting on the financial result, the Group Managing Director, FBNHoldings, Nnamdi Okonkwo said “over the period we have delivered a strong performance and growth enabled by focused execution of our strategic plan. Gross earnings were up by 80.1 per cent while our profit before tax grew by 156 per cent year on year. At the same time, our credit risk portfolio remains healthy with an NPL ratio of 46 per cent and a coverage of 85.4 per cent. Cost of income ratio improved to N 50 per cent from 65 per cent in 2022 on the back of enhanced revenue generation as well as effective cost containment initiatives.


    “Despite the high inflationary environment we remain committed to leveraging technology, automation and our brand strength to enhance our value proposition, increase revenues and improve the overall operational efficiency of the group. We are confident in our continuous progress in generating sustainable value for our shareholders.”


    Also the Chief executive officer First Bank of Nigeria Limited, Commercial banking group) Dr Adesola Adeduntun said “in the nine months ended September 30, 2023, First Bank group reported impressive financial results, reflecting sustained growth and resilience of the franchise.


    “Our gross earnings at the end of the quarter were N922.2 billion, making a remarkable increase of 79.8 per cent y-o-y. The substantial increase of 49.3 per cent yoy in net interest income reflects our commitment to managing interest rate dynamics effectively and optimising our interest-earning assets, while the impressive growth of 111.6 per cent y-o-y in non-interest income underscores our success in diversifying the bank’s revenue streams and providing value added services to our customer.

    “Growth of 157.9 per cent and 158.2 per cent y-o- y in the profit before tax and profit after tax respectively reflect our commitment to delivering exceptional value to our shareholders and stakeholders.


    “This performance is a testament to the dedication and hard work of our entire team, and it reaffirms First Bank’s position as one of the leading players in the commercial banking industry. As we continue to face dynamic market conditions, our agility, risk management capabilities and strategic approach will remain pivotal in sustaining this impressive growth trajectory. Looking ahead, we are committed to sustaining this momentum exploring new growth opportunities through innovation and upholding our core value of customer centricity.”

  • ASUU Donates Food Items To 320 IDPs In Katsina

    ASUU Donates Food Items To 320 IDPs In Katsina

    The Academic Staff of Universities Union (ASUU) has donated food items to about 320 Internally Displaced Persons (IDPs) in Katsina State on Sunday.

    Dr Lawalli Alkali, the association’s national resource person represented its National President, Prof. Victor Emmanuel, at the distribution of the relief materials.

    He said the gesture was not the first of its kind by the association as it had been a long-standing programme.

    He said also that the foodstuffs included rice, cooking oil, spaghetti, noodles and seasoning cubes.

    “ASUU has always identified with vulnerable groups and the most seriously vulnerable Nigerians like the Internally Displaced Persons IDPs.

    “ASUU regards IDPs as manifestation of a serious problem.

    “When you see IDPs across the country, it shows that we still have a lot to do on security matters,’’ he said.

    Alkali appealed to President Bola Tinubu to adopt necessary measures to tackle security challenges in the country to enable IDPs to return to their homes.

    According to him, ASUU has been monitoring events in Katsina State, and appreciates the commitment of Gov. Dikko Radda on security issues.

    “We pray that he remains focused to do the needful to ensure that IDPs returned to their homes. And resume their farming and other business activities,’’ he said.

    Some of the IDPs, mostly women, expressed appreciation of ASUU’s gesture and appealed to the state government and wealthy individuals to also assist.

    Those who spoke said they were in need of serious assistance, adding that staying in uncompleted buildings was not their desire.

    They also called on governments at all levels to redouble efforts at tackling security challenges in their communities. 

  • Kaduna Refinery Ready By Q4 2024, Lokpobiri Assures

    Kaduna Refinery Ready By Q4 2024, Lokpobiri Assures

    The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has revealed that the ongoing quick-fix project at the Kaduna Refinery and Petrochemicals Company Limited, KRPC, will be back on stream by the end of 2024.

    The Minister disclosed this during an inspection tour of Kaduna Refinery & Petrochemicals while assessing the progress of work on the ongoing quick-fix project of the Refinery in Kaduna on Saturday.

    A statement signed by the NNPC Limited management on its official X handle, formerly Twitter, Lokpobiri said he is confident that the refinery will be restreamed by the end of 2024, considering the “significant level of progress” he has witnessed on the tour.

    The Minister, who observed that he would continue to hold key players involved in the rehabilitation process of the nation’s refineries accountable, also pledged Federal Government support in ensuring the timely delivery of the project.

    According to the Minister, there is an urgent need to get the refinery back on stream for the nation’s economic prosperity and energy security, which are both paths to sustainable development. 

    Speaking earlier, Group Chief Executive Officer of NNPC Ltd., Mele Kyari, reassured the minister that the fuel plant at the refinery will be delivered by the end of 2024.

    Kyari said that all hands are on deck to bring the refinery back on stream, stressing that the contractor has since mobilized to the site and the needed equipment for the quick-fix activities is already in place.

    “We are very confident that we will get the appropriate financing to get to the end of it, and ultimately, we will start to deliver value to Nigerians again. We plan the quick fix for 60,000 barrels per day so that we can start making money from this plant and we can continue the other part of the refinery to bring it up to its full-fledged capacity. This will also tally with the completion of the Build, Operate, and Transfer (BOT) on the pipeline so as to have a reliable pipeline delivery infrastructure,” the GCEO stated.

    The inspection tour, which was preceded by the 14th refineries rehabilitation steering committee meeting, also had in attendance NNPC Limited’s Executive Vice President, Downstream, Adedapo Segun; Executive Vice President, Upstream, Oritsemeyiwa Eyesan; Managing Directors of the three refineries; and a host of other members of the Committee.

  • Doctor To Patient Ratio In Jigawa Now 1:21k — NMA Laments

    Doctor To Patient Ratio In Jigawa Now 1:21k — NMA Laments

    *Says Jigawa has highest record of braindrain in Nigeria

    The Nigerian Medical Association (NMA) has expressed concern over shortage of doctors in Jigawa, with the current ratio of one doctor to 21,000 patients in the state.

    The NMA Chairman in the state, Dr Aminu Abdullahi, who disclosed this in a statement on Saturday to commemorate the 2023 Physicians Week, said “Jigawa has the highest record of braindrain in the country.”

    The World Health Organisation’s (WHO) standard is one doctor to 600 patients.

    The chairman, therefore, lamented how brain drain negatively hit the state, which allocated 16 per cent of its 2023 annual budget to the health sector.

    He said that the association is worried about the sad development.

    “This is because ours is a bi-directional bran drain, both within the country, that’s to other states of federation and outside the country.

    “We have about 350 doctors working in both state and federal health facilities.

    “The NMA chapter in Jigawa has 350 doctors catering for seven million people in the state.

    “Currently, the doctor/patient ratio in Jigawa stands at about 1: 21,000, against the WHO standard of 1/600 patients.

    “The ratio is similar to that of nurses and other health workers in the state. This is one of the worst ratios in the country, which will significantly affect our health indices.

    “It is also worthy of note that Jigawa was among the early states to implement CONMESS and CONHESS salary structure for healthcare workforce back in 2011, which made it one of the highest paid states in the country back then.

    “The current challenges bevelling the health sector as a whole honestly call for sincere, deliberate and fact guided discussions concerning our healthcare delivery system.

    “With the current economic realities the nation is going through, there is no better time to make the healthcare delivery system in our dear state more efficient and responsive than now.”

    The NMA chairman said that the theme of the 2023 Physicians’ Week — “This is our chance to get it right in the health sector” and the sub-themes “The Abuja Declaration 22 years after” and “Ethical issues in human organ donation” — are in tune with the current realities in the health sector. 

  • Nigeria’s eCommerce Revenue To Hit $6.710m By December

    Nigeria’s eCommerce Revenue To Hit $6.710m By December

    Revenue in Nigeria’s eCommerce market is projected to reach $6,710.00 million by December 2023, a new report by Statista has said.

    In its eCommerce in Nigeria report, the data company stated that revenue is expected to show an annual growth rate (CAGR 2023-2027) of 10.79 per cent, resulting in a projected market volume of $10,110.00 million by 2027.

    With a projected market volume of $1.319 billion in 2023, the report noted that most revenue will be generated in China.

    “In the eCommerce market, the number of users is expected to amount to 143.9m users by 2027.

    “User penetration will be 45.3% in 2023 and is expected to hit 58.6% by 2027.

    “The average revenue per user (ARPU) is expected to amount to $66.23, the report said. 

  • Debt Rising Cost May Increase Cost Of Borrowing – PwC

    Debt Rising Cost May Increase Cost Of Borrowing – PwC

    Cost of funding increase in debt concerns which has led to lowering of credit ratings may lead to increase in the cost of international funds, PricewaterhouseCooper (PwC) has said.

    In its Nigeria bi-monthly Economic Outlook released on its website titled “Impact of global economic trends on Nigeria’s foreign exchange and the way forward”, the professional services firm said it may increase the demand pressure on forex to meet future FX debt service obligations.

    According to the firm, it is evident in the decline in capital importation from $24 billion in 2018 to $5.3 billion in 2022.  

    “The increase in the global Central Bank’s policy rate may lead to capital reallocation away from Nigeria’s financial market to other markets with more attractive yields on investment. This may reduce FX flows to the economy

    “The Nigeria MSCI index recorded a significant decline of 113%, from 23.5% in 2020 to -3.02% in 2022, reflecting capital reallocation to other economies

    A marginal trade surplus may lead to an increased pressure on FX threatening liquidity in the forex market. In Q2 2023, Nigeria recorded a positive balance of trade of $2.3 billion. The positive trade balance could be attributed to the growth of total export by 9% (y/y) to $12.5 billion

    “The decline in remittance flows may reduce FX flows to the economy. Though remittances to Nigeria accounted for 38% of the total flows to the region, it increased by only 3.3% to $20.1 billion

    “Lower credit ratings due to Nigeria’s widening fiscal deficit, debt service to revenue ratio may reduce confidence in the Nigeria economy. This may lead to reallocation of funds from the Nigerian economy and reduction in FX flows,” it said.

    Over time, the company observed that there has been a rise in the inflows of FX from autonomous or non-CBN sources, which has led to the widening divergence between the official and parallel market rates.

    “Since 2007, the FX inflows from autonomous sources exceeded inflows from the CBN

    “The implication of official interventions may not accurately reflect the market demand and supply dynamics as annual inflows are skewed towards unofficial sources,” it said.

    To address this imbalance, there is a need for authorities to boost investors’ confidence by deepening the financial markets, ensure longer term sectorial policy to maximise exports or deepen domestic consumption, and roll out short-term fixes to enhance foreign exchange liquidity.

  • Global Energy Supply: IEA Forecasts 73% Drop In Fossil Fuels’ Share

    Global Energy Supply: IEA Forecasts 73% Drop In Fossil Fuels’ Share

    The International Energy Agency (IEA) has projected that fossil fuels’ share in global energy supply would drop to 73% by 2030 and carbon dioxide emissions peaking by 2025.

    This is despite the fact that global oil demand would peak this decade at about 102 million barrels per day (mbd) for two more decades.

    The agency, in its latest ‘World Energy Outlook (WOE) 2023’ report stated that the drop in fossil fuel share in the global energy market had remained at around 80% for decades.

    According to the IEA’s Stated Policies Scenario (STEPS) data, from 2030, oil consumption will begin a slow decline by decreasing by more than four million barrels per day to 97.4mbd in 2050, the IEA said. 

    The report further predicted that in 2030, clean technologies would play a “greater role than today” as electric cars on the road worldwide will increase by 10 times, and renewables’ share of the global electricity mix will be near 50%, up by 30% while heat pumps and other electric heating systems will outsell fossil fuel boilers globally, and investment into new offshore wind projects will be three times more than new coal and gas-fired power plants.

    Commenting on the report’s findings, Global Net-Zero Transformation Advisory Operations Manager, EcoAct, Lindsay Ventress, said: “The World Energy Outlook 2023 underscores the increasingly narrow path toward preserving the goal of 1.5°C warming, yet provides hope that this remains attainable if we promptly embark on transformative climate actions.

    “The report’s call for an annual twofold increase in energy efficiency improvements underscores its critical role in a sustainable future, but also the current failure of legislators to get to grips with this vital requirement. In light of this, businesses cannot afford to merely wait for government commitments; they must become catalysts for progress,” she added.

    Even so, the IEA maintained that demand for fossil fuels was set to remain “far too high” to limit the global rise in temperatures to 1.5°C, as per the Paris Agreement.

    The agency further warned that despite the impressive growth in clean energy, if the policies are not changed, global emissions would remain high to push the temperature limit by around 2.4°C this century.

    The STEPS also estimates a peak in energy-related carbon dioxide emissions in the mid-2020s.

    Speaking on the report’s findings, the IEA Executive Director, Fatih Birol, explained: “Taking into account the ongoing strains and volatility in traditional energy markets today, claims that oil and gas represent safe or secure choices for the world’s energy and climate future look weaker than ever.”

    According to the report, the tense situation in the Middle East “is a reminder of hazards in oil markets a year after Russia cut gas supplies to Europe”. In the STEPS, the share of seaborne crude oil trade from the Middle East to Asia rises from around 40 per cent to 50 per cent by 2050.

    The WOE highlights the fears in the natural gas markets due to instability and price hikes after Russia cut supplies to Europe while also foreseeing a surge in new liquefied natural gas (LNG) projects from 2025, with the prospect of adding more than 250 billion cubic metres per year new capacity by 2030, representing 45% of the current global LNG supply.

    While some of the immediate pressures of the global energy crisis have eased due to the current geopolitical situation and the global economic developments, the IEA drew attention to the “unsettled” global energy market, noting that “this underscores, once again, the frailties of the fossil fuel age and the benefits for energy security as well as for emissions of shifting to a more sustainable energy system.”

    It stated that developing economies had been experiencing the largest increase in demand for energy services as the extreme volatility in energy markets have pushed for an “affordable, reliable, and resilient supply”.

  • Nigeria’s Currency Circulation Jumps To N66.4trn -CBN

    Nigeria’s Currency Circulation Jumps To N66.4trn -CBN

    The Central Bank of Nigeria CBN) has reported that Nigeria’s total money supply (M2) increased to N66.4 trillion in September 2023.

    The data from the apex bank on money supply in the economy in the month other review comprising demand deposits, quasi-money, and currency outside banks, reflected increases in the components.

    Specifically, quasi-money, which pertains to financial tools that can be easily converted to cash, rose from N40.8 trillion in the preceding month to N41 trillion; demand deposits, primarily made up of funds in banks accessible without prior notice, moved from N21.7 trillion to N23 trillion while currency outside banks’ vaults marginally increased from N2.29 trillion to N2.3 trillion.

    Over the past few years, Nigeria’s money supply has been increasing based on the micro and macroeconomic whirlwinds of the economy, particularly the surging inflation rate, FX pressure on the Naira, and declining interest rates.

    The money supply, also known as M2, represents the total amount of money available in the economy at a particular moment, including physical currency such as coins and banknotes as well as deposits maintained by individuals, enterprises, and institutions in banks and other financial entities.

    However, the nation’s Net Foreign Assets dipped in September from N7.1 trillion to just N591 billion while Net Domestic Assets rose to N66.5 trillion from N58.3 trillion.

    A further analysis of the M2 trend during the month under review showed that the net domestic credit rose from N87.2 trillion to N92.7 trillion, thereby raising the net domestic credit to GDP by around 42.7 per cent.

    The breakdown of the net domestic credit indicated that credit to the government marginally increased to N34.1 trillion from N32.5 trillion while credit to the organized private sector surged from N54.7 trillion in the preceding month to N58.6 trillion, representing 63% of net domestic credit.

  • AfDB’s Total Portfolio In Nigeria Hits $4.4bn – Burrow

    AfDB’s Total Portfolio In Nigeria Hits $4.4bn – Burrow

    The African Development Bank (AfDB) says its total portfolio in Nigeria stands at $4.4 billion. The portfolio is for development projects.

    In his opening remarks at the Joint Country Portfolio Performance Review (CPPR), the Director General for Nigeria Country Department, AfDB, Lamine Barrow, who stated this at the weekend in Abuja, added that there have been significant improvement in the portfolio performance.

    He said: “Currently, the Bank’s portfolio in Nigeria is one of the largest among the Regional Member Countries (RMCs), with a total commitment value of US$ 4.4 billion. These are 48 operations fairly evenly distributed between public and private sector operations.

    “Since the 2022 CPPR Workshop, some of the portfolio performance metrics have improved. In particular, operations flagged for implementation challenges decreased from 36% in January 2023 to 32% in September 2023. This is a result of collective efforts from the Federal Ministry of Finance, the Executing Agencies and the Bank to reduce start-up and implementation delays. Indeed, the time taken to meet loan effectiveness and first disbursement conditions tend to be excessive. Let me acknowledge the unprecedented recent development with the FEC approval of the Ekiti Knowledge Zone project!

    “We are pleased that the share of start-up delays has been reduced from 32% of flagged operations in June 2023 to 28% in October 2023, and is expected to reach 8% by end 2023 with timely and targeted actions for some projects.”

    Burrow commended the Federal Government for the bold reforms initiated to address macro-economic imbalances and structural issues in the economy.

    “These reforms, particularly removal of the fuel subsidies and unification of the exchange rates management system, will help reignite higher economic growth trajectory, despite the short-term pains to the population.

    “This renewed drive for results and impact is clearly noticeable in the Bank’s interface with the Federal Ministry of Finance, and specifically the International Economic Relations Department,” he said.  

    Since the outbreak of the COVID-19 pandemic, Burrow said the Bank’s annual disbursements increased from UA 93 million in 2021 to UA 143 million in 2022 and projected to reach UA165 million by end December 2023.

    According to him, fiduciary compliance has also improved with progress observed in the submission rate of audited financial statements by the executing/implementing agencies for financial Years 2021 and 2022.

    “However, there is scope for further improvements in these and other areas. A more regular scheduling of our Quarterly Meetings will also help ensure that emerging issues in the portfolio management are addressed timely,” the AfDB chief said.

    To further drive improvement in the implementation of its project, he said the Bank “decided to introduce Project Awards to recognize excellence and strong performance, showcase best practices, and incentivize Executing Agencies and Project Implementation Units to improve performance and delivery of development results. I am pleased to announce that the first Project Awards will be given out today.  We hope that these recognitions will provide Project Teams added motivation to enhance project implementation performance and results.”

    For his part, Director International Economic Relations Department, Federal Ministry of Finance, Budget and National Planning, Stanley George, said the aim of the workshop is to ensure Nigeria gets value for money.   

    He said, “If we take a facility we need to know how it is convertible to impact on people. The benefit is to the people that are our concern. We don’t want any delay. We want seamless implementation of these projects so that people on whose behalf this service was called would have immediate impact.”

    The Director said the review would help proffer solutions to the delays that are encountered in the implementation of some projects.

    “I want to use this opportunity to highlight some of the issues that may have inhibited the smooth performance of some of the portfolios. One of which is the long period of delay, low disbursement rate, and communication with various MDAs. I believe that some of these issues will be taken up at the very technical level, so that all stakeholders will know their critical roles,” he added.

  • AccessCorp Reports N1.593trn Gross Earnings In 9 Months

    AccessCorp Reports N1.593trn Gross Earnings In 9 Months

    Access Holdings (AccessCorp) Plc has reported a superlative 75.70 per cent year on year (y/y) increase in gross earnings to N1.593 trillion during the nine months of 2023 from N906.93 billion reported the same period of last year.


    The growth resulted from double-digit increases in net interest income and income from fees and commission during the period.


    The company posted profit before tax of N294.416 billion at the end of nine months this year from N147.056 billion reported in the preceding year, indicating a surge of 100.21 per cent.

    The unaudited result released the company showed that AccessCorp paid income tax of N43.973 billion within the period under review against N10.287 billion paid in the preceding year, bringing profit after tax to N250.444 billion from N136.766 billion with 83.12 per cent rise in profit.


    The company interest income rose by 83.38 per cent to N1.048 trillion against N571.738 billion reported in the previous year while interest expenses up from N291.450 billion in 2022 to N658.508 billion, representing 125.94 per cent growth, bringing net interest income to N389.955 billion at the end of September 2023 from N280.288 billion recorded in the comparative period of 2022.


    Also, the net income advanced 83.12 per cent y/y to N250.44 billion in 9 months 2023 while the company reported N314.60 billion in gains from foreign exchange gains.


    Analysis of the result showed that fee and commission went up by 55.95 per cent to N208.182 billion from N133.494 billion while fee and commission expense stood at N59.628 billion against N38.311 billion recorded the previous year.


    Total assets went up by 42.71 per cent to N21.405 trillion from N14.998 trillion made in the previous year while total liabilities grew from N13.767 trillion to N19.765 trillion in the previous year.

    Bears dominate as equity market sheds N67bn

    Domestic equity market Thursday sustained its bearish run, shedding N67 billion as losses recorded in the shares price of small and medium size stocks impacted negatively on the market.


    Market capitalisation of listed equities declined by 0.18 per cent to N36.856 trillion from N36.923 trillion reported in the previous day.
    The NGX All Share Index also depreciated by 67084.95 points from 67206.16 points traded the previous day.


    A review of the investment showed that Mcnichols led gainers table in percentage terms with 8.93 per cent to close at N0.61 per shares, UACN followed with 6.09 per cent to close at N12.20 per share, Oando Plc added 4.07 per cent to close at N8.95 per unit, Chams Plc gained 3.65 per cent to close at N1.99 per share, Nestle Nigeria Plc increased by 2.94 per cent to close at N1050.00 per unit.


    On the contrary, NSLTECH topped losers chart, declining by 10 per cent to close at N0.27 per share, CWG trailed with trailed 9.94 per cent to close at N7.70 per share, Thomas Way fell by 9.84 per cent to close at N4.03 per unit, International Breweries down 9.78 per share to close at N4.15 per share while Universal Insurance dipped by 8.33 per cent to close at N0.22 per share.


    Volume of trades declined by 62.007 million, representing 18.8 per cent as investors traded 267.653 million shares valued at N5.110 billion in 5205 deals against 329.660 million shares costing N4.410 billion exchanged hands the previous day in 5998 deals.


    Transactions in the shares of Fidelity Bank led market activities with 39.831 million shares valued at N326.853 million, Chams Plc followed with account of 23.500 million shares worth N46.416 million, AccessCorp traded 20.555 million shares cost N347.746 million, United Bank for Africa exchanged 19.007 million shares valued at N35.725 million, Japaul Gold traded 18.252 million shares cost N16.285 million.