For Nigeria to achieve the $1trillion Gross Domestic Product (GDP) by 2026, the Nigeria Deposit Insurance Corporation (NDIC), among other stakeholders, have emphasised on the need for banks and Fintech companies to collaborate and drive the real sector growth.

Delivering a keynote address at the 2024 annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos over the weekend with the theme, “Nigeria’s Journey Towards $1 trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and Real Sector” the Managing Director/Chief Executive, NDIC, Mr. Bello Hassan stated that the current recapitalisation initiative of the Central Bank of Nigeria (CBN) must be effectively implemented. According to him, this is necessary towards enhancing the resilience, solvency and capacity of Nigerian banks to absorb shocks and continue to support economic development of the nation by efficiently performing their function as the fulcrum of financial intermediation.

He noted the role of strong and well capitalised banks in supporting the current administration’s bold vision of growing Nigeria’s economy to a $1 trillion must be appreciated by the relevant players in the financial sector.

“The opportunities and potentials for growth of the real sector depend, among others, on the availability and affordability of financing the economy. To achieve the desired level of financing required by the real sector, the window offered by banks in partnership with Fintechs, must be adequately harnessed,” he said.

He, however, stressed on the need for supervisors to understand the interconnection among the various financial services providers and how their policies and actions can affect the efficiency and optimality of the overall financial system.

He noted that many Nigerian banks have focused almost exclusively on large corporations, underserving small and medium enterprises as well as the financially excluded active poor unlike the Fintechs that have the potential of closing this gap through deployment of innovative financial services, using new technology and reduction of bottlenecks associated with traditional financial institutions.

“Notwithstanding the opportunities for growth and the benefit that the system stands to gain through the exploration of Fintechs in the financial services ecosystem, we must, as stakeholders, be conscious of the additional risks and complexities that the system may be further exposed, particularly in the area of privacy, personal information, customer protection, transparency, and cyber-security.

“This no doubt has made regulatory oversight increasingly more complex. Financial regulators must evaluate existing rules and consider adoption of new regulations to better address the opportunities and challenges presented by these new technologies,” Hassan said.

On the role of stakeholders, he emphasised that the vision of growing Nigeria’s economy initiated by President Bola Tinubu, is the starting point for the national policy rethink, stakeholder engagement and realignments of efforts and policies toward achieving the objective.

He stated that the CBN and NDIC have collectively through their respective mandates repositioned the banking industry to better serve its intermediation role for the benefits of real sector and in fact all other sectors of the economy.

He said the CBN foreign exchange rate unification and banks recapitalisation are some of the key initiatives necessary for propelling national economic growth.

Hassan highlighted that the foreign exchange rate unification policy has the potential for promoting foreign direct investment, foreign portfolio inflows, increased investor confidence, reduction of budget deficit, and improved sovereign credit ratings.

“The objective of the CBN and NDIC is to promote safe, sound and stable banking system that is capable of providing the required financing to our productive sectors of the economy. This is crucial in Nigeria’s journey towards the $1 trillion economy that we all aspire to attain,” he added.

While giving his guest speaker address, the Group Managing Director, United Bank for Africa Plc (UBA), Mr. Oliver Alawuba said Nigeria’s journey to a $1 trillion economy is not just a vision but also a shared responsibility.

Alawuba, who was represented by the Executive Director, Finance and Risk Management, UBA, Ugo Nwaghodoh, however, called on the banking sector, fintech innovators, the real sector, and regulatory institutions to work hand-in-hand to drive this transformation.

“We are on the cusp of a new era, one that will be defined by innovation, resilience, and sustainable growth. Let us take this opportunity to collectively shape the future, ensuring that the Nigeria of tomorrow is one where prosperity is shared, opportunities abound, and our economy stands as a beacon of growth on the global stage,” he said.

According to him, Nigeria has the largest fintech market in Africa, populated by a rapidly growing number of start-ups offering solutions that address the inefficiencies of the traditional banking sector.

“Fintech has already transformed how Nigerians access financial services – from mobile payments to lending platforms, the scope is vast.

“As we march towards a $1 trillion economy, the Fintech Sector is poised to play a crucial role in expanding financial access, driving innovation, and stimulating competition within the broader financial system,” he said.

In his welcome address, the National Chairman, FICAN, Mr. Chima Nwokoji, however, raised concerns on fluctuations in exchange rates, and regulatory pronouncements of which one is the exclusion of retained earnings from capital calculations.

He explained further that, “There is evidence of global best practices that show that a robust banking system is vital for economic growth. Singapore’s banking sector, for instance, has facilitated its rise as a financial hub and supporting economic growth.”

He highlighted that the banking sector recapitalisation would increase lending to MSMEs, driving entrepreneurship. According to him, this will boost job creation and support fintechs through strategic partnerships. This, in turn, will improve financial inclusion; enhance credit facilities for agriculture, manufacturing, and infrastructure development and boost investor confidence, thereby attracting foreign direct investment.

In the recently held grand finale event that honored 84 of its customers with N28 million, Stanbic IBTC Bank concluded its Reward4Saving Promo 3.0.

This prestigious event took place at the iconic Stanbic IBTC Towers on Walter Carrington Crescent, Victoria Island, Lagos; marking the end of a nationwide initiative to promote a strong savings culture among Nigerians. The promo rewarded 875 customers in its third season across 12 months.

At the grand finale draw, seven customers from seven business zones of Stanbic IBTC Bank won the grand prize of N2 million each, alongside seven savers who each secured N1,000,000 and an additional 70 winners who were rewarded with N100,000 each.

The selection process for all winners was conducted electronically and supervised by representatives from the Advertising Regulatory Council of Nigeria (ARCON) and the National Lottery Regulatory Commission (NLRC), ensuring fairness and transparency.

First introduced in 2021, the Reward4Saving initiative was devised as a strategic promo to encourage Nigerians to develop saving habits by allowing them to participate in monthly, quarterly, and grand finale draws to win cash prizes.

So far, the promo has rewarded 1,942 customers with N318 million. The promo has also won the ‘Most Transparent Consumer Promotion’ award for two consecutive years at the Industry Awards.

The Reward4Saving Promo 3.0 transcends the mere distribution of prizes; it epitomises Stanbic IBTC Bank’s commitment to enhancing financial security and encouraging Nigerians to adopt sustainable saving practices. By emphasising the significance of saving, the Bank aspires to empower its clientele and substantially contribute to the nation’s financial prosperity.

In his opening remarks, Olu Delano, Executive Director, Personal & Private Banking at Stanbic IBTC Bank, highlighted the company’s strong commitment to fostering a savings culture among its clients. “Our current savings promo goes beyond a mere celebration; it is proof of our dedication to promoting financial inclusion and advocating for responsible financial practices,” stated Olu.

He further acknowledged and appreciated customers’ dedication to saving. “Through this initiative, our goal is to commend their prudent financial behavior and encourage a broader segment of the Nigerian population to recognise and adopt the merits of financial discipline,” Olu concluded.

By fostering consistent saving habits, individuals can secure their financial future and enjoy a range of additional rewards.

This approach enhances their economic stability and is fundamental to achieving financial freedom. Cultivating discipline in saving encourages a mindful approach to spending and investment, which can lead to a more prosperous and stress-free life.

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, has commenced the 2024 edition of its annual SME training.

This initiative is designed to empower small and medium-scale enterprises (SMEs), stimulate economic growth, and promote entrepreneurial innovation across the country.

The event will be held in key locations across Nigeria, including Lagos, Kaduna, Kano, and Abia states, from Thursday, September 19, 2024 to Friday, November 1, 2024.

As part of its commitment to developing the Nigerian economy and supporting SMEs, Stanbic IBTC Bank has meticulously designed this programme to provide entrepreneurs and business owners in the open market with essential tools, knowledge, and networks to thrive in today’s competitive market.

The Stanbic IBTC  2024 SME training promises to be a transformative experience for all participants, as Stanbic IBTC Bank brings banking solutions to their doorstep.

At the training sessions, attendees will engage in workshops led by experts, offering invaluable insights and practical skills from seasoned professionals and industry leaders.

It is a prime opportunity for networking, allowing participants to meet and connect with like-minded entrepreneurs, potential partners, and investors, thus broadening their business opportunities.

The event will also provide access to innovative tools and resources to streamline operations, enhance productivity, and foster growth.

Additionally, attendees will receive up-to-date market insights, including forecasts, strategies, and firsthand success stories from thriving businesses directly from market analysts. This setup ensures all participants acquire new knowledge, practical tools, and connections to advance in their respective industries.

Olajumoke Bello, Head, Enterprise Banking, Stanbic IBTC Bank, expressed tremendous enthusiasm for the SME training:

“At Stanbic IBTC, our commitment to the success of Nigerian small and medium-scale enterprises (SMEs) is rock solid. We recognise these businesses’ role in nurturing economic development, and we provide a supportive platform to meet their immediate needs while paving the way for a sustainable future for businesses nationwide.”

Olajumoke added that Stanbic IBTC empowers entrepreneurs through this initiative and creates a conducive environment where businesses can thrive and prosper. “Our objective is to ensure that Nigerian SMEs are well-equipped with the necessary tools, knowledge, and resources to achieve remarkable growth and contribute significantly to the nation’s economy.”

The event represents a significant advancement in efforts to engage with and support Nigeria’s small and medium-scale enterprise (SME) sector, a critical component of the national economy.

Through initiatives like the 2024 specialised SME training programme, Stanbic IBTC is reinforcing its commitment to being a key player in fostering the nation’s socioeconomic growth.

Growing investor confidence and strong market participation have continued to boost optimism about Fidelity Bank’s stock as the bank experienced a remarkable 20% surge on the Nigerian stock market, with its share price surpassing the N13 mark by the third week of September.

This upward trend follows the bank’s combined offer, which included a Public Offer and Rights Issue launched on June 20, 2024.

The combined offer consisted of 10 billion ordinary shares priced at N9.75 for the public and 3.2 billion shares at N9.25 for existing shareholders, collectively raising N127.1 billion. After a consolidation period from June to August, coinciding with the close of the combined offer, Fidelity Bank’s shares have gained over 20% month-to-date (MtD) in September.

Fidelity Bank has maintained a robust bullish trajectory since August 2018, when its stock dipped below N2. Since then, it has surged by more than 680%. The bank started trading in 2024 at N10.85, with 900 million shares exchanged.

However, uncertainties related to recapitalisation efforts among major Nigerian banks led to a temporary decline to N9 per share in April. Despite this setback, the stock regained its upward momentum after touching a low of N9.00.

Following the completion of the combined offer in August, Fidelity Bank’s share price climbed once again, gaining over 20% by mid-September. A key factor contributing to this latest surge is the successful combined offer, which paves the way for an upcoming private placement.

The Fidelity Bank combined offer, which was the first in the current recapitalisation phase in the banking industry, saw significant demand, prompting an extension that added 8.2 billion shares. Of these, 5 billion were sold through the Public Offer and 3.2 billion via the Rights Issue. This high demand resulted in increased market activity, with over 2 billion shares traded in June and 3 billion in July.

As the combined offer concluded on August 12, the stock entered a consolidation phase, but trading activity picked up notably by mid-September. Weekly trading volumes reached 27 million shares, pushing the stock past the N13.00 threshold, sustaining its upward trend.

In a recent note to investors, the bank’s Managing Director, Dr. Nneka Onyeali-Ikpe expressed gratitude for the strong response to the capital raise, stating that, “with the conclusion of the Combined Offer, I am delighted to announce that we have met and surpassed our capital-raise target for the first phase of this exercise.”

“My profound gratitude goes to our customers, new investors and existing shareholders for supporting us in this journey. We will forever be grateful for the support we received during this capital-raise exercise.

“Our deepest thanks go to our regulators namely the CBN, Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX): the CBN for its vision of recapitalising Nigerian banks to ensure banks have sufficient capital to sustain a $1tn economy in the near future and improve the overall confidence in the banking industry; SEC and the NGX for the role they played in ensuring the seamless execution of this first phase of our recapitalisation plans.

The Alternative Bank, a pioneering, specialised, and non-interest finance institution, has partnered with the prestigious Ikoyi Golf Club to sponsor the 27th Nigeria Cup golf tournament, which teed off this Sunday at its lush green course in Ikoyi, Lagos.

This strategic partnership brings together the two prestigious organisations committed to promoting harmony through sports, social interactions, and philanthropic initiatives.

A highlight of this year’s cup is the inaugural “Golf for Good” charity event—a 3-hole mini-golf tournament raising funds from the participants and the bank for donations to charity.

At the Golf for Good charity tournament’s tee-off, sponsored by the bank, Korede Demola-Adeniyi, Executive Director, South, for The Alternative Bank, emphasised: “Our support reflects our core values. We leverage our platform for positive change and community welfare. The Alternative Bank offers innovative financial solutions, such as Premium Gold Card, AltInvest, AltPro, AltPower, AltBiz Facility, and AltLease, to mention a few. These products are tailored to diverse customer needs, empowering individuals and businesses to achieve financial goals while driving social impact.”

Speaking about the partnership with The Alternative Bank, the Chairman of the Ikoyi Golf Club, Rotimi Obajimi, added: “We are proud of The Alternative Bank’s headline sponsorship of the 27th Nigeria Cup. They are worthy partners who have added value to this year’s event, and we appreciate their support. We will continue to seek like-minded partnerships that benefit the golfing community in Lagos and beyond.”

In recognition of their outstanding performances, winners of the Bunker contest and the Mini Golf Charity tournament received exclusive rewards such as access to The Alternative Bank’s AltClub private lounge located in MMA 2, reserved for frequent fliers, as well as the premium, sleek Gold MasterCard World card that offers perks like access to private airport lounges worldwide, discounts at luxury hotels, complimentary travel insurance, and more.

The weeklong program of the Nigeria Cup, the country’s premier golfing event, features tournaments for Professionals, Caddies, Children and Special Guests. The event showcases top golfing talent while promoting community engagement, valuable social networking opportunities, and charitable giving.

Hundreds of professional golfers are expected to participate in the various competitions throughout the weeklong programme that ends on 28 Saturday, September, with a glamorous gala night for special guests and patrons.

The Alternative Bank’s sponsorship of the Nigeria Cup underscores its dedication to fostering enduring relationships with customers and contributing to the betterment of society.

About The Alternative Bank

The Alternative Bank is a leading, specialized finance bank offering innovative and ethical financial services. The bank is committed to going beyond the status quo, doing things differently to provide its customers with the highest level of service and support.