Cloned Nigerian Anchor

Author: Chike Ozohili

  • CBN Approval Delaying Release of H1 2023 Statements -Access Holdings

    CBN Approval Delaying Release of H1 2023 Statements -Access Holdings

    The board of Access Holdings Plc has announced that it is awaiting approval from CBN to release its Half-Year (HY) financial results for the period ended 30th June 2023 after completion of the audit of its subsidiaries.

    In a statement signed at the Nigerian Exchange Limited by the Company Secretary, Sunday Ekwochi, the results would be filed on or before September 30, 2023.

    “Access Holdings Plc (the Company) wishes to notify the investing public and the Nigerian Exchange Limited (NGX) of a potential delay in the publication of the Company’s Audited Interim Financial Statements for the Half Year ended June 30, 2023 (the Results’).

    The Company had, on August 14, 2023, requested and obtained the approval of NGX for the Results to be filed on or before September 15, 2023, subject to the approval of the Central Bank of Nigeria (CBN’), due to post-audit completion matters. In line with NGX’s approval, the Company had submitted the Results to the CBN for its approval.

    However, given the time estimated for the CBN to review the submitted Results, it is envisaged that the Company may be unable to meet the September 15, 2023 timeline for publication of the Results.

    Based on the foregoing, the Company has sought and obtained an extension of time to file the Results on or before September 30, 2023, subject to CBN’s approval of the Results.

    In mid-July, Access Holdings completed its acquisition of a majority stake in Finibanco Angola after receiving necessary regulatory approvals from CBN and Angola’s apex bank.

    The group noted that the bank had signed necessary agreements with minority shareholders of Finibanco Angola S.A. who expressed interest in selling their shares.

    With the completion of the acquisition, Access Holdings now owns more than 51 per cent stake in Finibanco Angola S.A.

    Also, Access Bank Plc (flagship subsidiary of Access Holdings) reached an agreement to acquire the sub-saharan subsidiaries of Standard Chartered Bank.

    In the acquisition deal, Standard Chartered will sell its shareholding in its subsidiaries in Angola, Cameroon, Gambia, and Sierra Leone to Access Bank as well as its consumer, private & business banking business in Tanzania.

    Recall that the Access Holdings’ initial delay in releasing its results was due to ongoing audit activities of the newly acquired sub-subsidiaries of the banking group.

    Following the completion of its audit activities, it is now seeking final approval from the apex bank before publishing its results to the investing public.

  • Foreign Telcos Reject New NCC Funds Repatriation Policy

    Foreign Telcos Reject New NCC Funds Repatriation Policy

    Airtel Nigeria and some other foreign telecom companies operating in Nigeria have rejected the Corporate Governance provision by the Nigerian Communications Commission (NCC) on the repatriation of funds.

    Section 14 (16) of the Corporate Governance Guidelines published by the NCC, which the operators are frowning at states:

    “The Board shall ensure a licensee seeking to repatriate funds over 30 per cent of its annual net profit shall obtain the prior written approval of the Commission.”

    Expressing their displeasure during a public inquiry on the draft guidelines, the telecom operators, including IHS Nigeria, ATC Nigeria, and Airtel Nigeria argued that the provision would discourage investments even as it contradicts existing laws on the repatriation of funds by foreign companies operating in Nigeria.

    In its written submission during the inquiry, a tower company, ATC Nigeria Wireless Infrastructure Limited, stated:

    “Repatriation of funds ensures that foreign investors successfully reap the dividend of their investment (particularly when the licensee has mainly foreign investors). Waiting for the approval of the NCC before funds are repatriated will lead to investor dissatisfaction and affect the smooth operation of the company.

    “We respectfully suggest that the approval of the NCC be obtained where the repatriation involves a significant amount that might jeopardize the company’s operations. The repatriation threshold that would require the approval of NCC be fixed at 80 per cent.”

    Expressing similar concern over the same provision, Airtel Nigeria in its submission to the regulator said the Section 14(16) Guidelines are in contravention of Section 15(4) of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act Chapter F34, 1995 18 which guarantees unrestrictive transferability of returns from Foreign Direct Investment.

    “It is also at variance with the Federal Government’s policy guaranteeing 100 per cent repatriation of profit from investments in the country.

    This pre-approval requirement from the Regulator to repatriate more than 30 percent of net profit could discourage Foreign Direct Investment (FDI) in the industry.

    According to HIS Nigeria, the provision has far-reaching implications and would only create bottlenecks and discourage investments, both local and foreign.

    “Given that foreign shareholders and bondholders are entitled to receive dividends and interest respectively depending on the capital structure of the entities, the inability to timely meet interest repayments portends a negative connotation for the country especially as lenders would be reluctant to extend further credit to local borrowers and this eventually adversely impacts sovereign credit ratings.

    “Requiring prior written approval of the Commission to repatriate funds is unduly restrictive and at variance with the policy position of the current government administration which has expressed the desire to attract foreign investments.

    Meanwhile, the Nigerian Communications Commission in its response to the operators’ concern said it had taken note of all their submissions and would take care of it in its ongoing review of the document.

  • FG’s Fiscal Deficit To Further Decline In Q3, Q4 -MPC

    FG’s Fiscal Deficit To Further Decline In Q3, Q4 -MPC

    Some members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) have projected that the federal government’s fiscal deficit will continue to decline in the third and fourth quarters of 2023.

    Their projections are predicated on the recent efforts by the government to manage expenditures better and also improve oil and non-oil revenues. 

    Their prediction contained in their various personal statements during the last MPC meeting, as posted on the CBN website.               

    In his personal statement, the Permanent Secretary, the Federal Ministry of Finance, Budget, and National Planning, Aliyu Ahmed, said: “The fiscal deficit is expected to decline in the third and fourth quarters of 2023 on the back of recent efforts by the new government to manage expenditures better and also improve oil and non-oil revenues.

    “With expenditure reprioritization and fiscal wisdom at both the federal and state levels, there is an expectation that the government debt ratio may fall at least marginally by the end of 2023. 

    “Speaking on the fiscal sector, Adenikinju Adeola, a member, explained that both government revenue and expenditure underperformed between January and May 2023.

    He explained that the Federal Government’s retained revenue stood at N1.67 trillion, lower than the pro-rata target of N1.96 trillion due to the underperformance of Federation Account Allocation Committee (FAAC) receipts and gross independent revenue.      

    However, on the positive side, he stated: “Total FGN expenditure as of May 2023 was N4.76 trillion, 27.8 percent lower than the budget estimate of N6.606 trillion. The shortfall came mainly from allocations for debt service, interest on Ways and Means, and capital expenditure.

    “Overall budget deficit reduced by -18.15 percent in the first five months of 2023.  

    “The underperformance of the budget is especially felt in the capital expenditures, thus impacting negatively on economic development”, he added. 

    On his part, another member, Obadan Mike, noted that although the new government is making serious efforts to boost revenue generation, fiscal deficits and associated public debt accumulation will continue to elicit deep concerns.     

    Meanwhile, the MPC members also called for a review of border closures to increase food supply in the country while expressing concern about the decline in growth of the agricultural sector in the first quarter of 2023.                                                           

    Adenikinju said, “The continuous closure of the borders should also be reviewed. This is to expand food and non-food supply to the economy and force down domestic prices, especially food. 

    Also expressing concern about the declining growth in the agricultural sector, Ahmed said: “The decline in growth in the agriculture sector is particularly worrisome, given its role in food production and employment generation.   

    “Targeted intervention by the fiscal and monetary authorities in the agriculture sector is crucial to ensuring medium- to long-term food security and price moderation. The recent initiative by the CBN to offload grains from the national strategic grain reserves to lower food prices could not have come at a more auspicious time.

    “There is also a need to leverage the African Development Bank (AfDB) Agro Pocket Wallet to support farmers in the production of grains and fertilizers.”

  • Rail transport revenue surges to N1.1bn in Q2 2023 –NBS

    Rail transport revenue surges to N1.1bn in Q2 2023 –NBS

    The National Bureau of Statistics (NBS) has said that its revenue for the second quarter of 2023 increased to N1.1 billion from the sum of N768 million collected from rail passengers in the first quarter of this year.

    In its Transportation Data (Q2 2023)’ report published on its website Friday, the statistics bureau the figure represents a 69.7 per cent increase over the Q1 figure.

    On a year-on-year basis, the amount represents a 83 per cent increase over the sum of N598.74 million generated in the corresponding quarter of 2022.

    The NBS disclosed that in the quarter under review, a total of N188.03 million was generated from the transportation of goods and cargo by rail, amounting to an increase of 105.04 per cent when compared to the N91.70 million revenue in Q2 2022.

    Furthermore, the Bureau disclosed that miscellaneous income from rail transport in Q2 2023 amounted to N18.74 million, reflecting a decline of 62.31% from the N49.73 million reported in Q2 2022.

    On the number of passengers that travelled by rail during the quarter, the statistics agency reported a significant increase with a total of 474,117 passengers, which also indicated 12.25% increase compared to the 422,393 passengers reported in the same quarter of 2022.

    However, the report showed that the volume of goods transported by rail in Q2 this year reduced to 56,029 tons, from the 59,996 tons recorded in the first quarter of 2023 but that when compared to the corresponding quarter of 2022, the volume of cargo increased from 31,197 tons.

  • DisCos raked in N247.33bn revenue in Q1 2023 -NBS

    DisCos raked in N247.33bn revenue in Q1 2023 -NBS

    Data from the National Bureau of Statistics (NBS) has revealed that there was a slight increase in the number of total number of customers in the second quarter of 2023 with the number moving to 11.47 million from 11.27 million in the first quarter of 2023, indicting a 1.84 per cent increase.

    In its Nigeria Electricity Report Q2 2023: Energy Billed, Revenue Generated and Customers By DISCOS, the bureau stated that on a year-on-year basis, customer numbers in Q2 2023 rose by 6.17% from 10.81 million reported in Q2 2022.

    Similarly, metered customers stood at 5.47 million in Q2 2023, indicating a growth of 3.10% from 5.31 million recorded in the preceding quarter.

    “On a year-on-year basis, this grew by 10.40% from the figure reported in Q2 2022 which was 4.96 million. In addition, estimated customers during the quarter were 6.00 million, higher by 0.72% from 5.96 million in Q1 2023.

    “On a year-on-year basis, estimated customers increased by 2.58% in Q2 2023 from 5.85 million in Q2 2022,” it said.

    The coordinating agency for all statistics in Nigeria added that revenue collected by the DISCOs in Q2 was N263.08 billion from N247.33 billion in Q1 2023.

    “On a year-on-year basis, revenue generated in the reference period rose by 39.63% from N188.41 billion recorded in Q2 2022.

    “Electricity supply was 5,909.83 (Gwh) in Q2 2023 from 5,851.87 (Gwh) in the previous quarter. However, on a year-on-year basis, electricity supply increased by 13.06% compared to 5,226.97 (Gwh) reported in Q2 2022,” it said.  

  • Stakeholders lagging behind on global warming fight, says UN

    Stakeholders lagging behind on global warming fight, says UN

    The United Nations has said that the world is not on target to curb global warming, insisting that more action is needed from all stakeholders.

    According to the Global Stocktake report, “The Paris Agreement has driven near-universal climate action by setting goals and sending signals to the world regarding the urgency of responding to the climate crisis,” it said. “While action is proceeding, much more is needed now on all fronts.”

    The report, culminating a two-year evaluation of the 2015 Paris climate agreement goals, distils thousands of submissions from experts, governments and campaigners and will lay the groundwork for the global stock-take discussion at COP28.

    Nearly 200 countries agreed in 2015 in Paris to limit warming to no more than 2 Celsius above pre-industrial levels, and to strive to keep the increase to 1.5 C.

    While each country is responsible for deciding its own climate actions, they also agreed to submit to a progress report by 2023 to see what more should be done.

    Some of the world’s most climate vulnerable countries expect the report to spur action from global leaders.

    The U.N. said existing national pledges to cut emissions were insufficient to keep temperatures within the 1.5 C threshold. More than 20 gigatonnes of further CO2 reductions were needed this decade – and global net zero by 2050 – in order to meet the goals, the U.N. assessment said.

    “With leaders gathering this month for the United Nations Secretary General’s Climate Ambition Summit ahead of COP28, the findings and recommendations of this Report need to be a wake-up call and a trigger for cogent commitments,” chair of Association of Small Island States, Pa’olelei Luteru said.

    The report urged countries to cut the use of “unabated” coal power by 67-92% by 2030 versus 2019 levels and to virtually eliminate it as a source of electricity by 2050.

    Low and zero-carbon electricity should account for as much as 99% of the global total by mid-century, while technological challenges holding back carbon capture must be resolved.

    The report also called for funding to be unlocked to support low-carbon development, noting that billions of dollars were still being invested in fossil fuels.

    “It serves up a bold to-do list for governments to limit warming to 1.5C and protect people everywhere from climate devastation,” said Tom Evans, policy advisor on climate diplomacy at British climate think tank E3G.

    Commitment is needed to phase out fossil fuels, set 2030 targets for renewable energy expansion, ensure the financial system funds climate action, and raise funds for adaptation and damage, he said.

    “Anything less will fall short on the necessary steps laid out in this report.”

  • We’ll continue to support fight against oil theft -Chevron

    We’ll continue to support fight against oil theft -Chevron

    Oil major, Chevron Nigeria Limited, has said that it would not relent in the continued support of the fight against oil theft and pipeline vandalism in the Niger delta region.

    General Manager, Policy, Government and Public Affairs of Chevron, Esimaje Brikinn, in a statement on Saturday insisted that over the years, it has been in the vanguard of the fight to curb oil theft and pipeline vandalism in the oil rich region.

    CNL is the operator of the joint venture between the Nigerian National Petroleum Company Limited (NNPCL/CNL JV).

    According to Esimaje, to therefore blame the company for incidences of oil theft and pipeline vandalism is not only untrue but also without basis.

    “Chevron Nigeria Limited is aware of a report in one of the online media platforms blaming international oil companies (IOCs), communities and other stakeholders for the oil theft that has hindered the growth of the oil industry.

    “Chevron and another IOC were specifically mentioned in the report allegedly attributed to the Chairman of the House of Representatives ad hoc committee set up to investigate crude oil theft.

    “CNL refutes this assertion as it is untrue, incorrect, and made without any basis. CNL reiterates its commitment to supporting the collaborative efforts to prevent oil theft and pipeline vandalism in its area of operation.

    “CNL affirms illegal bunkering and oil theft in the Niger Delta region has negatively impacted CNL’s operation and has devastating effects on the nation’s economy and the environment in the Niger Delta region. CNL continues to monitor the environment in its areas of operations and report any suspected illegal activity and breaches to the relevant Government Security Forces and regulatory agencies.

    “CNL has helped in reducing pipeline vandalism and oil theft in the Niger Delta region by collaborating with communities around the areas of the company’s operations to set up the Community Pipeline and Facilities Surveillance Programme (CPFSP) in 2005. Through the CPFSP, CNL continues to tackle the challenge of oil theft and pipeline vandalism and engage the community youth in pipeline surveillance to reduce oil theft in CNL’s area of operation. CNL also deploys security surveillance equipment and other technologies in addition to physical water-borne patrols by the CPFSP and the government security forces,” the company said.

    He noted that CNL’s commitment to working with government agencies and others to prevent oil theft and its impact on the environment was recently commended by the Special Investigation Panel on Oil Theft/Losses in Nigeria set up by the Federal Government during their visit to CNL’s operations.

    “CNL is committed to the highest ethical standards and business principles. CNL operates as a responsible company and conducts its business in full compliance with the law and in a socially and environmentally responsible manner. CNL will continue to work with the Nigerian government towards the development of the oil and gas industry and the Nigerian economy generally,” he added.

  • We’re not opposed to Agip Oil share sales to Oando -NNPCL

    We’re not opposed to Agip Oil share sales to Oando -NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) has said that it was never opposed to the sale of the shares of Agip Oil Company to Oando Plc.

    In a statement signed by the Chief Corporate Communications Officer of the company, Garba Deen Muhammad said the letter to Agip Oil did not indicate it was opposed to the deal.

    In a letter to the Managing Director of Nigerian Agip Oil Company Ltd, dated September 4, and signed by Managing Director of NNPC E&P Limited, Ali Muhammed Zarah, NNPCL said if the deal goes through, it would have far-reaching contractual/legal implications in relation to the joint Operating Agreement dated July 1991 governing the operations of the NAOC/NEPL/OOL Joint venture.

    NNPCL said in the letter that its consent as a member of the joint venture member operating ENI’s onshore asset, was not obtained before the planned divestment to Oando. This it said was against contract rules governing the joint venture operation, and could affect the deal.

    The statement reads, “It has come to our notice that a routine communication in the form of a letter written by NNPC E&P Limited (NEPL) to its JV Partner, Nigerian Agip Oil Company Limited (NAOC) is being interpreted to suggest that NNPC Ltd. is opposed to the sale of NAOC shares to Oando PLC. This is not correct.
     

    “NNPC Ltd. wishes to state that the letter was sent by NEPL, an NNPC Ltd. subsidiary. However, nowhere was opposition or objection to the transaction mentioned in the letter.

    “NEPL is only drawing attention to certain important clauses in the Joint Operating Agreement (JOA) between it, NAOC and OOL; which might have been overlooked in error. Adherence to those clauses will protect the transaction, now and in the future.”

    Oil major Eni had in a press release saying that it had signed an agreement with Oando, an energy solutions provider listed on both the Nigerian and Johannesburg Stock Exchange, for the sale of all its stake in Nigerian Agip Oil Company Ltd (NAOC Ltd), a wholly-owned subsidiary focusing on onshore oil & gas exploration and production in Nigeria, as well as power generation.

  • FBN introduces FirstEdu loans to enhance school infrastructure funding

    FBN introduces FirstEdu loans to enhance school infrastructure funding

    One of Nigeria’s top-tier financial institutions, FirstBank is addressing the infrastructure funding challenge faced by private schools across Nigeria through its FirstEdu loan solutions. The bank believes this initiative will significantly contribute to improving the overall quality of education in the country.

    Designed to assist schools in financing their capital projects, FirstEdu loans offer a maximum tenor of 48 months. T

    his product provides private school owners with flexible funding options to address urgent cash flow needs, replace outdated furniture and equipment, and renovate deteriorating buildings and classrooms.

    Folake Ani-Mumuney, Group Head of Marketing & Corporate Communications at FirstBank, emphasized that FirstEdu loans empower school proprietors to stay competitive in delivering educational services and support to their target audience.

    Since its launch in 2018, the FirstEdu loan has played a pivotal role in continuously enhancing schools’ facilities while positioning them favorably to achieve their medium and long-term goals. These objectives encompass expanding schools through land acquisitions, purchasing school buses, modernizing educational facilities, and acquiring tools and equipment to optimize daily operations.

    Furthermore, renewable energy loans are now available to schools, allowing them to control and reduce their fuel-related costs while adopting eco-friendly power solutions.

    FirstEdu loans are exclusively targeted at private Nursery & Primary, Secondary, and A-Levels schools. Eligible institutions must have been in operation for at least 24 months and maintained an account relationship with FirstBank for a minimum of six months or with any bank registered with the Central Bank of Nigeria (CBN) for a minimum of 12 months. The loan amount can vary, depending on the school’s cashflow capacity, with the potential to access up to N20 million or more.

    Chuma Ezirim, Group Executive of e-Business and Retail Products at FirstBank, expressed the bank’s unwavering commitment to supporting the educational sector as part of its nation-building strategy.

    The positive reception of the FirstEdu product across the country underscores its impact on the educational sector’s value chain, contributing significantly to Nigeria’s socio-economic development. Education serves as the foundation for any society, and FirstBank is dedicated to helping build this foundation for the nation’s future generations.

  • SEC emphasizes strong regulation’s role in boosting banks’ growth

    SEC emphasizes strong regulation’s role in boosting banks’ growth

    The Securities and Exchange Commission (SEC) has said the remarkable growth witnessed in the Nigerian banking industry over the past decade is partly attributable to the capital market and SEC’s comprehensive regulatory approach.

    Mr. Lamido Yuguda, Director General of SEC said this at the 2023 Chartered Institute of Bankers (CIBN) graduates’ induction and prize award recently in Lagos.

    He said, “The harmonious relationship between the capital market and the banking sector is further exemplified by our role in facilitating capital raising, mergers and acquisitions for banks. 

    “By streamlining the listing process and ensuring adherence to high standards of transparency and corporate governance, we enable banks to tap into the securities market as a means to secure funds from a diverse range of investors

    “This synergy between the banking industry and the capital market is illuminated by the fact that only 4 out of the 25 banks that emerged from the Central Bank’s 2004 recapitalization exercise did not access the capital market before compliance.”

    Yuguda charged the graduates on professionalism and adapting to changes in the financial world. 

    “Distinguished graduates, as you embark on your banking careers, remember the importance of integrity, good moral conduct, and adaptability.

    “The financial world is evolving rapidly due to technology and global changes. Embrace these shifts as unique and timely opportunities to contribute positively to the banking industry”, he said. 

    He said the theme, “Navigating the Pathways of Banking Excellence,” aptly encapsulates the journey that each of them embarks upon.

    “I extend my sincere gratitude to the Chartered Institute of Bankers of Nigeria for its determined commitment to nurturing industry-ready professionals. Your dedication resonates with our shared vision of fostering a resilient, well-regulated financial ecosystem that can withstand challenges and foster sustainable growth.

    “The most renowned professionals are celebrated today for building business empires and nurturing thoroughbred professionalism, achieving success through proper conduct, steadfast dedication, and a meticulous approach that allowed them to refine their long-term visions and goals.

    He said the CIBN’s vision aligns with the Commission’s quest for transparent and fair conduct in securities business by ensuring that operators in the capital market play according to the rules.

    “The Commission also recognizes individual and corporate players whose conducts not only ensure compliance but do more to make investment an interesting endeavour.

    “As regulators and professional bodies, we must ensure that our onboarding processes for new entrants are robust enough so that only fit and proper persons find their way into the very exciting careers in the financial market.

     “Similar to what obtains in the money market, the Commission’s engagement spans a spectrum of activities, including registration, surveillance, proactive regulation, and robust enforcement mechanisms, all aimed at nurturing a fair and transparent market environment.

     “Even though the CBN is unrelenting in ensuring full compliance by banks and other financial institutions through relevant departments, the professional bodies, especially the CIBN must leverage continuous assessment to ensure that bankers demonstrate probity and ethical conduct at all times.   

     “As the financial market continues to evolve with the increasing need to embrace financial technology, we must keep fine-tuning the regulatory frameworks that guide our continued operation in the market,” he said. 

     He said the culture of transparency mandated by the Investments and Securities Act empowers investors to make informed decisions.