The Central Bank of Nigeria [CBN] yesterday barred United Bank for Africa [UBA], First Bank of Nigeria, First City Monument Bank [FCMB] and six other banks from all forms of foreign exchange transactions in the country until they remit all funds in their possession to the Treasury Single Account [TSA].
The CBN warned that the suspension of the banks will remain in force until they remit such funds.
Below is the list of banks barred by the CBN and the amount standing against them:
Mr. Bashir M. Wali, the Acting MD/CEO met with the Executive Governor of Bauchi State, His Excellency, Mohammed Abdullahi Abubakar at the State Liaison Office in Abuja to discuss opportunities to collaborate with the State towards boosting export-oriented investments in agro-processing, solid minerals and solid minerals, especially under the N500 billionExport Stimulation Facility (ESF) and the N50 billion Export Rediscounting and Refinancing Facility (ERRF).
L – R: Mr. Bashir M. Wali, Acting MD/CEO, NEXIM Bank and His Excellency, Mohammed Abdullahi Abubakar
Welcoming Wali and his team, the State Governor expressed his appreciation for the August visit and provided a snapshot of Bauchi State, especially its resources and other potentials.
According to Governor Abubakar, Bauchi State covers a total land area of 49,259.01 square kilometres which represents about 5.3% of Nigeria’s total land mass, making it one of the largest states in the country.
He informed Wali that agriculture is the mainstay of over 80 per cent of people who reside in both urban and rural areas with products ranging from maize, rice, millet, groundnut and guinea corn. Additionally, cattle and other livestock are reared at a commercially viable level.
In terms of solid minerals, Governor Abubakar indicated that the State has commercial mineral reserves comprising of Amethyst, Gypsum, Lead/Zinc, Uranium, Limestone, Kaolin, Gypsum, Antimony, Iron Ore, Gold, Marble, Columbite and Zinc; precious stones like Sulphur, Amities and Aquamarine among others. In addition to this, Bauchi has a manufacturing sector covering Iron and Steel, Water, Ceramics, Food and Beverages etc.
The Governor, however, identified certain constraints that have hindered the commercial exploration of the solid minerals in the State. These include the issues of licensing – considering that solid minerals is on the exclusive list; the paucity of data in terms of certification of available deposits; and the need to efficiently organise artisanal mining as well as establish beneficiation centres to boost the solid mineral value-chain in the State.
Concluding, Governor Abubakar indicated that one of the most viable potentials in the State is the tourism sector.
Bauchi is home to the Yankari Games Reserve (the biggest games reserve in West Africa), occupying an area of 2,224.59 square kilometres. Other notable tourist centres in the State include the Premier Game Reserve, Rock Paintings, the First Mining Beacon of Tilden-Fulani, the Panshanu Stone Heaps, Lame-Burra Game Reserve, Sumu Wildlife Park, Geji Rock Paintings of the Neolithic age, the Babban Gwani Architectural Designs at Bauchi and Kafin Madaki and the International Bird Sanctuary of Udubo district.
The Acting MD of NEXIM thanked Governor Abubakar for receiving the Bank’s team at short notice and informed that the Bank was established to promote export diversification and deepening the non-oil export sector.
Accordingly, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services – Tourism, Transportation and Entertainment sectors. This is the MASS Agenda of NEXIM Bank.
Wali used the opportunity to inform the Governor that NEXIM Bank recently launched a N500 billion Export Stimulation Facility (ESF) and the N50 billion Export Rediscounting and Refinancing Facility (ERRF) which were provided as intervention funds by the Central Bank of Nigeria (CBN) as part of efforts of the Federal Government to address the persistent overdependence of the economy on revenue from crude oil export.
Narrating on the guidelines to Governor Abubakar, Wali indicated that all applications under the intervention schemes are expected to be submitted through commercial banks or other development finance institutions.
After a satisfactory review of the applications in line with the eligibility criteria provided in the CBN guidelines, the PFIs will then forward such applications to NEXIM. The Bank will in turn do a further review of the applications within a period of time not exceeding 20 working days before forwarding the applications to the Central Bank of Nigeria for approval and funding.
In terms of cost, the ESF comes at a maximum interest rate of 7.5% for short-tenored transactions spanning up to three years, and 9% for longer term transactions that are up to 10 years. The RRF on the other hand comes at a maximum all-in cost interest rate of 6%.
However, considering that NEXIM Bank does not lend directly to government institutions, Wali suggested that the government should explore funding options with the Islamic Bank, Afrexim Bank or other such institutions at that level, while commercial proposals would be welcome from the private sector entities in the state for accessing facilities from the Bank. He subsequently presented the ESF/RRF guideline documents to the Governor.
Thanking the NEXIM MD, Governor Abubakar indicated that the courtesy visit was a step in the right direction and promised that arrangements would soon be put in place to have NEXIM Bank formally come to Bauchi State to meet with the state officials towards taking the conversation forward.
In Africa, the five most attractive nations for international investors are Ethiopia, Nigeria, Morocco, Ghana and Senegal. This was revealed in the latest study of consulting firm Havas Horizons and the Choiseul Institute covering 2016 to 2020 and entitled “Financing African Growth by 2020: Global Investors’ View.”
In the framework of the study, 55 global investors active in Africa including the Bank of America, BNP Paribas, Edmond de Rothschild, Proparco, Qatar national Bank, Rothschild & Cie, Standard Bank, Goldman Sachs, HSBC, Merril Lynch, Attijariwafa were surveyed.
75% of surveyed population is optimistic regarding Africa’s global economic outlook in 2016 while 91% are in the mid and long term by 2020.
Global lenders’ optimism in the continent despite slowdown of economies spurred by oil and commodities decline is explained by a better business climate, structuring of free-trade areas, development of inter-African commercial relations, demographic growth and emerging middles classes, the study stated.
Favored by 52% of surveyed investors, Ethiopia leads the previous top 5. Over the past 10 years the country has developed significantly with an average annual growth exceeding 8%, one of the highest growth rates over the continent. It also invests massively in infrastructures (energy, railways, roads, etc.) and intends to become a reference industrial hub.
Nigeria comes next with 44% of the surveyed. Despite the various crisis that the West African giant currently faces (namely Boko Haram, oil slump, Niger Delta Avengers), remains confident in its investors, especially in regards to the challenge of diversification of the economy ahead.
However, Nigeria just lost its place as the continent’s leading economy and now plans to be no more oil-dependent.
Grabbing 23% of the surveyed investors, Morocco is third in the ranking.
Enjoying evident tourism assets, proximity with Europe, infrastructures of quality, major investments in solar and wind energy, and an economy which is driven by a manufacturing industry focused on export and the multiplication of free-trade agreements the Cherifian kingdom is eyed by many investors.
Ghana is fourth with 21% of surveyed population. Accra in addition to its political stability launched major regional projects for roads and ports. It relies on its average class, agriculture, construction, and infrastructures and aims to become a commercial link between Cote d’Ivoire and Nigeria, West Africa’s largest top two economies, Havas’ study indicates.
Senegal comes last in the ranking with 19% of the surveyed population. Dakar benefits from the “positive impacts of the gradual transformation of its economy through the development of the finance, telecommunication and new technology sectors, as well as a diversified economy which is based on agriculture, agro-food and tourism,” the study highlights while also emphasizing the country’s political stability and the implementation of the Plan for an Emerging Senegal (PSE in French).
The Nigerian Stock Exchange (NSE) in collaboration with Bloomberg is set to host the 2nd NSE Bloomberg CEO Roundtable Event on Wednesday, 31st August 2016 at the Stock Exchange House, Marina, Lagos.
The CEO Roundtable themed “Navigating the Changing Business Landscape in Nigeria” will bring together thought leaders and captains of industry to share in-depth knowledge about their sectors with capital market players and proffer much needed solutions to economic realities. The panel at the event will feature CEOs from the financial services, telecommunications and manufacturing sectors; CEOs from portfolio management firms and renowned economists.
Some of the confirmed speakers for the event include: Oscar N. Onyema – CEO, NSE, Segun Ogunsanya – CEO, Airtel Nigeria, Bolaji Balogun- CEO, Chapel Hill Denham, Mark Bohlund – Senior Economist, Africa and the Middle East, Bloomberg Intelligence and Uk Eke – GMD, FBN Holdings.
Speaking on the event, Oscar N. Onyema, Chief Executive Officer, NSE, said:
“The CEO Roundtable is in line with the commitment of the Exchange to provide a platform that ensures continuous dialogue to provide practical solutions for companies operating in Nigeria. The headwinds that have befallen the Nigerian economy presents an opportunity for businesses to take a step back, access the current situation and plan accordingly. It is expected that this event will critically examine the changes in the business landscape, highlight their impact and propose solutions that will enable businesses thrive and survive in the current environment”
“Bloomberg is working more closely than ever with key financial institutions and stakeholders in countries like Nigeria to help them grasp opportunities, tackle challenges, and bring more transparency to capital markets,” said Selloua Chakri, Head of Market Structure Strategy, Bloomberg.
“We’re delighted to partner with the NSE again to convene this prestigious group of business leaders for what will no doubt be a fascinating and informative discussion.”
The event will feature a panel session on the theme and will centre on financing capital projects & the real economy in the current environment, policy measures needed to grow the manufacturing sector’s contribution to the economy and maintaining & attracting foreign investment through the downturn. There will also be a macro-economic review to guide discussions.
About THE NSE
The Nigerian Stock Exchange, a company limited by guarantee, services the largest economy in Africa and is championing the development of Africa’s financial markets. The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services, and more.
The Nigerian Stock Exchange continues to evolve to meet the needs of its valued customers, and to achieve the highest level of competitiveness. It is an open, professional and vibrant exchange, and the Entrepreneurial Growth hub of Africa.
The Nigerian Stock Exchange aspires to be Africa’s foremost securities exchange, connecting Nigeria, with the rest of Africa and the world.
About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to approximately 325,000 subscribers globally.
The biggest story coming out of China today is the launching of the Silk Road on Rails: China-Europe block trains that carry goods across the globe. The proposal to establish China-Europe railroads surprised even the most experienced of rail industry players, yet thousands of trains now traverse these tracks annually.
Not least surprised was the Director of Operations at the Hamburg Eurogate terminal, Thorsten Reese, who remarked, “Three years ago, I couldn’t imagine Germany and China being connected with rail cars; it is unbelievable!”
The China-Europe rail route is the longest in the world covering some 10,000 kilometres in total.
The first block train left Zhengzhou for Hamburg on July 18th, 2013, connecting people along the Silk Road and shortening the distance between continents. The 12-day, six-country journey posed challenges: would European companies welcome the new trade route? Would the cargo be secure? Would the project even be practical.
The trans-Eurasia rail trip began as a once-a-month event but China soon realised it required partners to make it successful. With partners on board, Hamburg became the forerunner. The German port city now serves as both a departure and destination point for the China-Europe block trains.
Thanks to a highly motivated Chinese workforce, Mr. Reese sees the cargo arrive safely and on time. The China Train employees are an enthusiastic group and make sure the trains are loaded and off-loaded on schedule.
The Hamburg Chamber of Commerce came on board after realizing the potential in the Silk Road Rail project. The Chamber’s MD, Corinna Nienstedt, did not mince her word when she said: “It is a new opportunity to transport between Hamburg on one hand, and Europe on the other hand, from China”.
This project has lowered the cost of transportation significantly and commerce is thriving. There is no doubt about the initiative’s acceptance.”
TMT Finance is teaming up with IHS Towers, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, to bring an international audience to Africa’s technology hub, Lagos, for the first event of its kind in Nigeria.
Converging technologies, expanding connectivity and telecom mergers and acquisitions (M&A) are predicted to be the main drivers of investment and deal activity in Sub-Saharan Africa in 2016 and 2017, according to global news and events company, TMT Finance.
The topics will top the bill at the inaugural TMT Finance Africa in Lagos 2016 conference on September 20, which will gather over 60 international and regional CEOs, CFOs, strategy heads, private equity chiefs, and senior investment bankers, consultants and lawyers to discuss the latest investment strategies for telecoms, media & technology (TMT) across Africa.
TMT Finance is teaming up with IHS Towers, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, to bring an international audience to Africa’s technology hub, Lagos, for the first event of its kind in Nigeria.
Ben Nice, Director, TMT Finance Africa in Lagos, said: “With now just a month to go we are really excited to be holding this event at such a critical phase for investment and M&A in Nigeria and Africa’s telecom, media and technology sectors. Lagos is the hub for innovation in Africa and the conference will act as a crucial dialogue between local, regional and international stakeholders and decision makers in the sector.”
Key C-level executives will be attending from companies such as: Airtel, MTN, Vodacom, MainOne, DLA Piper, Etisalat, IHS Towers, Ntel, Jumiah, Nokia, Standard Bank, Emerging Capital Partners, Carlyle, Barclays, African Capital Alliance, IpNX, Rack Centre, Spectranet, Iroko, FIbersat, Standard Chartered, Citi and many more.
Among the main themes on the agenda are: African Telecoms M&A and Financing, Africa Broadband Infrastructure Investment, Digital Africa Strategies, Venture Capital and Private Equity in Africa TMT, the Evolution of the African Towerco, Protecting Risk, Datacenters and Enterprise Cloud services, and Connecting the Unconnected.
“Our team of TMT Finance News journalists have been reporting on a number of themes and specific situations across Africa this year, including the strategic review of Millicom’s regional assets, the sale of Neotel to Liquid Telecom, Google’s fibre rollout projects in various countries, Orange’s consolidation in West Africa, MTN Nigeria’s IPO, and a number of fundraisings for flourishing digital media and technology-based companies throughout Africa. It really is a captivating time for the sector,” Nice added.
East African protesters have taken to the streets of London to demonstrate against banks that do business with Bidco Africa, highlighting the connection between global financial institutions, The Prince of Wales and widespread deforestation in Africa.
Barclays and Standard Chartered saw their London headquarters picketed due to their funding of Nairobi-based Bidco, a company that cuts down thousands of acres of pristine rainforest in Uganda, and engages in human rights and tax violations in Kenya and Tanzania.
The Bidco Truth Coalition, an activist alliance, has revealed that the Banking Environment Initiative (BEI), based at Cambridge University’s Institute for Sustainability Leadership under the patronage of The Prince of Wales, is failing in its mission to lead the banking industry in collectively directing capital towards environmentally and socially sustainable economic development.
The BEI’s nine member banks are Barclays, Standard Chartered, Deutsche Bank, Goldman Sachs, Lloyds, Northern Trust, RBS, Santander and Westpac.
By signing up to BEI’s ‘Soft Commodities’ Compact, the nine banks have committed to only direct capital towards sustainable business models and achieve zero net deforestation among their client companies.
Under BEI guidelines, member banks must drop clients that don’t measure up to socially and environmentally responsible policies.
Bidco Africa, which has engaged in multiple human rights, labour, tax and environmental violations, has publically stated that it does business with Barclays, Standard Chartered, Citibank, Equity Bank and Kenya Commercial Bank.
Bidco owns an oil palm plantation that has deforested 18,000 acres of rainforest in Uganda. Bidco has also grabbed land from over 100 smallholder farmers.
The environmental impact of the palm oil project has led activists to call on the UN Global Compact to eject Bidco from its roster of members.
In 2004, the World Bank pulled out of Bidco’s Uganda project, citing violations of the World Bank’s anti-deforestation policies.
But BEI has remained silent, and Barclays, Standard Chartered and other banks continue to do business with Bidco Africa.
The Bidco Truth Coalition calls on BEI, its patron, The Prince of Wales, and BEI’s nine member banks to publically state that they will no longer do business with Bidco and other companies that destroy the environment.
“The funds are expected to attract and incentivize new and additional investments to the non-oil export sector and enhance their competitiveness.”
Bashir Wali, Acting MD/CEO, NEXIM
The Nigerian Export-Import Bank (NEXIM Bank) recently launched two intervention products targeted at promoting the country’s non-oil exports.
The funds are the N500 billion Export Stimulation Facility (ESF) and the N50 billion Export Rediscounting and Refinancing Facility (ERRF). These intervention funds by Central Bank of Nigeria (CBN) are part of the efforts of the Federal Government to address the persistent overdependence of the economy on revenue from crude oil exports.
With the rebasing of the GDP in 2014, it became clear that the economy has become well diversified with the services sector contributing 54.8% of the GDP. The contribution of agriculture, which used to be about 35% of GDP prior to rebasing, has been diluted to 22%; while the oil and gas sector accounted for only about 14%.
In spite of this changing dynamics, however, the oil and gas sector continued to account for about 70% of government revenues and 95% of export earnings. This is due to the non-diversification of our external sector and the poor competitiveness of Nigeria’s non-oil exports.
Our non-oil export sector has continued to be challenged by a myriad of problems. Prominent amongst these problems are low investment and poor access to credit.
Over the last five years, credit flow to the export sector has not only been low, but it has also declined, accounting for an average of 0.6% of total domestic credit to the private sector. High risk aversion and dearth of long-term funds at competitive interest rates in the commercial banking system are largely responsible for the low access to credit.
It is against this background that the CBN has introduced these intervention schemes, with the objective of redressing the declining trend in domestic export credit. The main objective of these facilities is to boost the level of non-oil export earnings, which has stagnated at about 5% of total export earnings over the years.
The funds are also expected to attract and incentivize new and additional investments to the non-oil export sector, in addition to providing export-oriented projects with concessional medium- to long-term funds to mitigate some of the observed challenges and enhance their competitiveness.
The N500 billion Export Stimulation Fund
The ESF is a long-term facility with a tenor of up to 10 years. It is available to all operators in the export value chain, including start-ups and existing export-oriented companies wishing to expand. It is also available as working capital/stocking facility or for acquisition of plant and machinery for processing and packaging of goods for export.
All applications under the intervention schemes are expected to be submitted through the participating financial institutions (PFIs), which could be a commercial bank or other development finance institutions (DFIs).
After a satisfactory review of the applications in line with the eligibility criteria provided in the CBN guidelines, the PFIs will then forward such applications to NEXIM Bank. The Bank will in turn do a further review of the applications within a period of time not exceeding 20 working days before forwarding the applications to the Central Bank of Nigeria for approval and funding.
The N50 billion Rediscounting and Refinancing Facility
The N50billion ERRF is an enhancement of the existing N1.225 billion Rediscounting and Refinancing Facility operated by NEXIM Bank since its inception in 1991.
The RRF is essentially an interbank facility aimed at encouraging and supporting Deposit Money Banks (DMBs) to provide short-term pre- and post-shipment financing in support of exports. The facility provides a discount window to support export-financing banks, thereby improving their liquidity and providing incentives for them to expand their export portfolio. The facility also moderates the cost of export finance with the aim to enhance export competitiveness.
Under the scheme, the participating banks are required to apply directly to NEXIM Bank, in a prescribed format, and approvals are granted on the basis of individual export transactions. Export bills/transactions are discounted/refinanced at an all-in rate of a maximum of 6% per annum (p.a.) with NEXIM Bank allowed a maximum spread of 3% p.a.
These funds [The RRF], together with the ESF are expected to immediately redress the declining trend in the flow of credit to the non-oil export sector.
We have observed that credit to the sector declined from an average of about N525 billion annually over the previous five years to about N125 billion in 2014. This has been a major factor in the declining contribution of the non-oil export sector to total export revenue.
We have projected that every additional funding of between N75 billion and N100 billion has the potential to generate additional export proceeds of about US$1 billion.
This implies that we should be able to enhance non-oil export earnings by at least $5 billion annually through these funds. This projection is our minimum target as we expect the provision of these funds to stimulate additional investments and create the necessary multiplier effects.
There is also the possibility that these funds could be increased by the CBN if necessary. We will undertake periodic review of their performance and present the scorecards in order to determine the funds’ development impacts in terms of job creation and improvements in productivity and capacity utilisation, among other development benchmarks.
The ESF comes at a maximum interest rate of 7.5% for short-tenored transactions spanning up to three years, and 9% for longer term transactions that are up to 10 years. The RRF on the other hand comes at a maximum all-in cost interest rate of 6%.
These should help to lower the cost of operations, in addition to addressing the problem of mismatch, whereby long-term assets are funded with short-term facilities, which is why many viable projects have ended up with the Asset Management Company (AMCON).
Besides the generous terms of the funds, NEXIM Bank is working with other government agencies to address other critical issues such as logistics and packaging/quality standards, which have contributed significantly to the poor market access and weak competiveness of Nigerian goods in international markets.
As a country, there is no alternative to export diversification, particularly in view of the current downturn in the global oil market, which is expected to be quite protracted.
This development, coupled with the need to create jobs for the teeming youth and promote sustainable development, has led the current administration of President Muhammadu Buhari to reaffirm its commitment towards the development of the agricultural and solid mineral sectors, where Nigeria has huge endowments.
Other Export Development Initiatives
NEXIM Bank is working on a number of other initiatives that will support Nigeria’s non-oil export growth. We have been working on the facilitation of a regional shipping company to provide direct maritime links within West and Central Africa. The Sealink project will help in removing non-tariff barriers and logistical challenges that have limited trade within the regions to 10% of total volume.
We are collaborating with a number of stakeholders to unlock export capacities. Working with the Solid Minerals Association of Nigeria and the Shippers Council, we want to attract private sector investments towards dredging the inland water ways to provide dry bulk cargo barges to facilitate the movement of solid minerals by sea. This will help the country to realise its annual export potentials of at least one million tonnes of coal, iron ore and lead/zinc.
Together with major investors, we hope to resuscitate and commence the production of hydrocarbon-free jute bags in the country for packaging of exports.
And to unlock further financing, NEXIM Bank is collaborating with African Export-Import Bank (Afrexim) on the introduction of factoring as a strategic debtor financing tool or an alternative funding instrument for exporter SMEs.
In this regard, we plan to facilitate the enactment of the enabling legislation that will guide the provision of factoring services in Nigeria.
Several initiatives are being undertaken by various government agencies including the Federal Ministry of Industry, Trade & Investment (FMITI) and Nigerian Export Promotion Council (NEPC), aimed at creating the required environment to boost investment in the non-oil export sector and develop a sustainable industrial value chain.
It is expected that with all these efforts, coupled with NEXIM Bank’s initiatives, we should begin to see positive results very soon. We are very optimistic.
Bashir Wali is Acting Managing Director/CEO, Nigerian Export-Import Bank[NEXIM]
Royal Exchange Plc, one of Nigeria’s premier insurance and financial services group, has announced that it has generated a Gross Written Premium of N8.43 billion from its business activities in the first half of the 2016 financial year, representing an increase of 34 percent over the figure of 2015, which stood at N6.28 billion.
Gross Premium Income also witnessed a growth of 17 percent over the 2015 figures, with the 2016 figure standing at N6.46 billion, compared to the N5.50 billion generated in the corresponding period in 2015.
Net Premium Income for the period amounted to N4.34 billion, with a modest growth of 5 percent over that of half year 2015, which stood at N4.12 billion. Total Net Claims paid for the period under review amounted to N1.95 billion, an increase of 42 percent from half year 2015, which was N1.37 billion.
Commenting on the results, the Group Managing Director of the company, Alhaji Auwalu Muktari, said that “the half year results on the top-line items witnessed significant growth which shows that Royal Exchange as an insurance group, is focusing on its growth objectives set out at the beginning of the year, by participating in large-ticket financial transactions, as well as playing in the retail insurance market.”
According to Muktari, “despite the very harsh operating environment being witnessed in the Nigerian economy today, we are greatly optimistic that by focusing our efforts on aggressive sales of our various product and service offerings, increasing our presence and participation in the retail sales space, reducing our operating costs profile and embarking on various expense optimisation strategies, we will be able to surpass our financial targets set for ourselves at the beginning of the year.”
One of the key growth strategies for Royal Exchange Plc, according the GMD is the proposed listing of a N3 billion bonds on the floor of the Nigerian Stock Exchange.
Auwalu said that in line with the on-going reforms being undertaken by the regulator, NAICOM, there is a need for fresh capital to enable Royal Exchange Plc take advantages of the coming opportunities that will arise in the course of the reforms taking place. He further added that “Royal Exchange Plc, will in the years to come, continue to be an aggressive player in the retail market in Nigeria and will be looking at different strategies to increase its product offering and visibility in the marketplace, while not losing track of the corporate market, where the returns and margins, are dwindling”.
In recognition of the efforts being undertaken to reposition the company, Royal Exchange Plc recently won two awards from BusinessToday Online as the Insurance Company of the Year, 2015 and CSR Company of the Year, as well as the Insurance and Pension Online CSR Company of the Year, 2015.
About Royal Exchange Plc
Royal Exchange Plc started operations in 1921 and continues to be driven by innovation and a determination to offer services that are of exceptional value to its customers. Following the recapitalisation exercise in 2007, the company was reorganised into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries namely:
Royal Exchange General Insurance Company Limited (Non-Life Insurance Services)
Royal Exchange Prudential Life Plc (Life Assurance Services)
Royal Exchange Finance and Asset Management Limited (Financial Advisory Services)
Royal Exchange Healthcare Limited (HMO and Health Insurance)
Royal Exchange Microfinance Bank Limited (Banking Services)
Jointly organised by the African Development Bank (AfDB), the United Nations Economic Commission for Africa (ECA) and the United Nations Development Programme (UNDP), the African Economic Conference (AEC) 2016 will take place in Abuja, Nigeria, from December 5 to 7, 2016 under the following theme: “Feeding Africa: Towards Agro-Allied Industrialisation for Inclusive Growth.
The AEC 2016 will provide an opportunity to discuss Africa’s agricultural transformation by presenting the latest empirical evidence on how to leverage agro-industrialisation for feeding Africa and promoting inclusive growth.
It will also provide critical thinking on how policy-makers, development partners, the private sector, civil society organisations and the academia should support the planning and implementation of these industrialisation strategies. Papers accepted for presentation will comprise original work not previously published.
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.
About ECA:
Headquartered in Addis Ababa, Ethiopia, the United Nations Economic Commission for Africa was established in 1958 with the mandate of promoting the economic and social development of its member States, fostering intra-regional integration, and promoting international cooperation for Africa’s development.
About UNDP:
UNDP partners with people at all levels of society to help build nations that can withstand crisis, and drive and sustain the kind of growth that improves the quality of life for everyone. On the ground in 170 countries and territories, we offer global perspective and local insight to help empower lives and build resilient nations.
L – R: Mr. Kofi Adumaku, Regional Head of Project Finance, Afreximbank; and Mr. Bashir M. Wali, Acting MD/CEO, NEXIM Bank
“There is a need for cooperation and input from all the stakeholders and synergy between the financial institutions to achieve any meaningful development in the Cocoa industry….” –Bashir M. Wali.
In the bid to revive the ailing cocoa Industry in the country, the Afreximbank and the International Cocoa Organisation (ICCO) met with the Bank of Agriculture (BOA) and the Nigerian Export-Import Bank (NEXIM) to discuss possible ways of intervention and development of the Cocoa Industry in Nigeria.
The visiting team was led by the Regional Head of Project Finance, Afreximbank, Mr. Kofi Adumaku, and Mr. A.S Kurama of the Bank of Agriculture.
The Ag MD/CEO of NEXIM Bank, Mr. Bashir Wali, in welcoming the group gave a brief overview of the activities of NEXIM Bank and expressed great delight in this initiative organised by Afreximbank, the Federal Government of Nigeria and the International Cocoa Organisation towards reviving the cocoa industry in Nigeria.
He further explained that NEXIM Bank as an export credit institution charged with the mandate to promote export diversification of the non-oil sector had in the past supported the cocoa value chain by funding major cocoa processing plants such as Ile –Oluji, Multi –Trex and Stan Mark under the ADB/ESL facility and stated that the story of the cocoa industry, especially as it relates to processing, in Nigeria cannot be told without the mention of NEXIM Bank.
In his response, Mr. Kofi Adumaku indicated that Nigeria has been the sleeping giant in the industry, having lost its former enviable position of being the largest producer of cocoa in the world, to the 4th largest producer after Ivory Coast, Ghana and Indonesia.
He informed the NEXIM Bank that that a decision has been reached by the Federal Government in collaboration with all relevant stakeholders in the industry to come up with a 5year strategic plan towards the revamping and sustained development of the cocoa industry in Nigeria.
According to him, “…there is a need to begin to support projects in the sector to make them viable again.”
He further stated that even though funding and cost of funding are major issues in the industry, relevant development financial institutions such as NEXIM Bank, AfreximBank, Bank of Agriculture and the Bank of Industry should team up towards providing the relevant support needed to develop the industry.
Concluding, the Ag. Managing Director of NEXIM Bank thanked the visiting team and said there is a need for cooperation and input from all the stakeholders and synergy between the financial institutions to achieve any meaningful development in the Cocoa industry.
He reiterated the Bank’s commitment to promoting export-oriented investments in the non-oil sectors of the Nigerian economy.
The NEXIM MD expressed the commitment of the Bank to provide funding interventions especially to entrepreneurs involved in cocoa processing; and urged major players and stakeholders in the industry to avail themselves of the single digit interest under the N500 billion Export Stimulation Facility (ESF) provided by the Central Bank of Nigeria which is being managed by the Bank.
About NEXIM Bank –
The Nigerian Export-Import Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.
In pursuit of its mandate of promoting export diversification and deepening the non-oil export sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (Tourism, Transportation and Entertainment) sectors.
NEXIM Bank embraces the exchange of information on best practices in trade and project finance as an important value addition to its operations.
L-R: Chairman of Pension Fund Operators Association of Nigeria(PenOp), Mr. Longe Eguarekhide; Chief Executive Officer, World Pension Summit(WPS), Chris Battaglia; Director-General, National Pension Commission (PenCom), Chinelo Anohu-Amazu and Founder, WPS, Eric Eggink at the 2016 World Pension Summit ‘Africa Special’ press conference held yesterday in Lagos.
The National Pension Commission [PenCom] and the Economic and Financial Crimes Commission [EFCC} are now working together to identify and deal with all cases of non-remittance of pension funds after deductions by organisations in the public and private sectors of the economy.
Mrs. Chinelo Anohu-Amazu, Director-General, National Pension Commission, who described non-remittance of deducted pension funds as criminal, said the collaboration with the EFCC is meant to immediately stop the trend and support PenCom to enforce the relevant pension laws. She added that the PenCom-EFCC is proceeding very well because the Commission has full control of the data on such non-remittances across the board.
The PenCom DG also reiterated her earlier stand that the N5.7 trillion pension assets as at June 2O16 is not sitting idle somewhere for disbursement but has been actively invested in various instruments in accordance with pension laws.
“Indeed, the steady growth of pension funds seems to suggest that funds are lying idle somewhere. But more public awareness and understanding is on-going to properly educate people on this. We need to increase the pace of such awareness going forward.”
She said PenCom has already established a new department on micro-pension to ensure direct active engagement with people in the informal sector just as the Commission is gathering accurate data to help with policy formulation and subsequent implementation.
Anohu-Amazu, who addressed a World Press Conference on the up-coming 3rd World Pension Summit [Africa Special] on September 27-28 in Abuja, said the summit provides a unique opportunity to improve the sector and derive appropriate channels of investment that leverages Nigeria’s fast growing pension funds for real sector development.
“The theme of this year’s summit-‘Pension Innovations: The African Perspective’ has been carefully chosen as PenCom seeks to drive into greater prominence, the revolutionary strides and achievements of African governments in the area of pensions and social benefits. PenCom also seeks to galvanise not only the Nigerian pension system but also those of other African countries towards sustainability and socio-economic impact.”
She said the themes of the two previous summits were selected based on the need to lay a solid foundation for the establishment of enduring pension systems in Africa and chart ways for effectively channeling the pension funds to sustainable investments such as railways, power, agriculture and real estate. This would serve as a catalyst to actively stimulate economic development across countries in Africa.
Some of the plenary sessions for the summit include:
Regional Reports: Revolutionary Strides in Pensions by African Countries
Emerging Insurer Role
The Dynamics of Pension Investments
Financial Inclusion
Pension Distribution: The Impact of Technology
Actuarial Issues and Their Impact on Pension Benefits
A major part of the summit would the 2nd Africa Pension Awards [APA] to recognise excellence, achievement and commitment to the development and strengthening of the African pension industry, in order to entrench good and innovative practices in pension administration.
“The 3rd edition of the World Pension Summit [Africa Special] promises to harness African talents in pensions and other support services such as investments, insurance and actuarial valuations. Indeed, the summit would provide a platform for pension regulators and operators in Africa to make positive contributions in ushering in a new dawn of innovations in pension administration.”
A leading logistics Company, Red Star Express Plc has announced a total sum of N6.6 billion turnover for the financial year ended March 31, 2016 and a profit after tax of N334.4 million. This was stated at the 23rdAnnual General Meeting (AGM) of the company held recently.
Speaking at the AGM, the Chairman, Dr. Mohammed H. Koguna noted that in spite of the challenges of decline in oil prices, immense pressure on the Naira, rising inflation, volatility and uncertainty in the foreign exchange market, regular flight cancellations and upsurge in general cost of living, the staff and management worked assiduously to ensure that the company achieved a satisfactory result.
“In spite of the challenges outlined, our company posted a turnover of N6.6 billion in the year under review. Our company has maintained its commitment in the creation of wealth for shareholders. To this end, the Board of Directors is recommending a gross cash dividend of 35kobo for every 50 kobo share translating to N206.3million. We demonstrated our commitment during the financial year to the Red Star Foundation policy by awarding 20 additional scholarship to secondary school students from the Eastern, Western and Northern part of Nigeria”, he reiterated.
With a view to optimizing emerging opportunities in the domestic and international business environment, there have also been changes in the company’s management structure.
The former Executive Director, Mr Olumuyiwa Olumekun, and Group Managing Director/CEO, Mr. Sule Umar Bichi, both had their contracts expired on August 31st 2015. After one year of extension for Mr. Bichi to facilitate smooth transition to new leadership for the company, the company made new appointments which took effect from April 1, 2016.
The Board appointed three (3) Executive Directors, and four (4) Divisional Managing Directors.
Mr. Sola Obabori assumed the position of the Deputy Managing Director (and will take over from the out-going Group Managing Director from September 1), Mr. Victor Ukwat assumed the position of Executive Director, Sales and Marketing while Mr. Auwalu Babura assumed the position of Executive Director Finance and Admin.
Other appointments were Mr. Charles Ejekam who became the Divisional Managing Director of Red Star Express, Mr. Ocholi Etu became the Divisional Managing Director of Red Star Logistics, Mr. Enoma Ojo assumed the position of Divisional Managing Director, Red Star Support Services and Mr. Tonye Preghafi assumed the position of the Divisional Managing Director of Red Star Freight.
Sir Sunny Nwosu, Representing Obuchi Limited in his statement, commended the out-going management for building a positive financial statement which the incoming management should take note of. In his words “To whom much is given, much is expected.”
Speaking on these appointments, Dr. Koguna thanked the out-going staff for their contributions towards the growth and success of the company, while also wishing the new management the best in their performance in the years ahead.
On future outlook, he pointed out that the Company is committed to ensuring sustained and steady growth of its operations and returns on investments.
“Regardless of the volatile economy, we will continually invest in our resilient employees, optimize our processes, refine our strategies, engage in cost efficiency, focus on new initiatives and increase our market share across the emerging economic sectors. We believe our commitment will give us the thrust we need to achieve maximum benefits for our esteemed shareholders”, he added.
Red Star Express Plc has four subsidiaries – Red Star Freight Limited; Red Star Logistics Limited and Red Star Support Services Limited, as well as Red Star Express, a licensee of FedEx, world leading air express company with over 650 aircrafts and more than 270 delivery destinations globally. FedEx has consistently been rated among the top 10 most admired companies in the world over the past 10 years.
United Nations Special Rapporteur, Chaloka Beyani will carry out his first official visit to Nigeria from 23 to 26 August to examine the situation and human rights of internally displaced persons in the country.
“The challenges confronting Nigeria and its government are considerable and cannot be overstated,” Mr. Beyani said.
“The Northeastern part of the country has witnessed an unprecedented increase in violence and the escalation of attacks by Boko Haram since 2009, which has forced the displacement of more than two million people from their homes and triggered a humanitarian crisis.”
“I will gather information on situations of internal displacement including both new and protracted displacement,” said the human rights expert, who will also examine the legal, policy and institutional frameworks in place for prevention of displacement, protection and assistance for internally displaced persons, and recovery.
Mr. Beyani will begin his four-day visit in Abuja to consult with senior Government officials as well as a wide range of other national and international partners, with a view to examining the ongoing responses and challenges, and assisting them to meet their obligations towards internally displaced persons and to support durable solutions for them.
The Special Rapporteur will also visit camps for internally displaced persons in displacement affected regions and hear from IDPs and representatives of host communities first-hand to learn about their needs, challenges and expectations.
At the end of his visit, on Friday 26 August 2016, the expert will share his preliminary observations with the media at a press conference which will be held at the Transcorp Hilton Abuja.
The Special Rapporteur will subsequently produce a comprehensive report and recommendations based on his visit for presentation to the Human Rights Council in June 2017.
The National Insurance Commission [NAICOM] has terminated its Bancassurance plan with the Central Bank of Nigeria [CBN] following CBN’s refusal to allow NAICOM to license banks in that regard. The Commission also mandated insurance firms to stop paying commissions, fees, referrals and introductions to banks in respect of insurance transactions.
Mr. Mohammed Kari, Commissioner for Insurance, NAICOM, gave the directives in Lagos during the investiture of the 22nd chairman of the Nigerian Insurers Association [NIA}, Mr. Eddie Efekoha.
“As you aware, the Commission has been in discussion with the Central Bank on the Bancassurance distribution channel for sometime now. However, in a letter received last week, the CBN asserted that NAICOM is not in a position to licence Banks and thus we cannot go ahead with the arrangement for now. However, NAICOM would continue to engage the CBN until all the grey areas are resolved. The second however, is that from today, all relationships the Commission had hitherto accommodated where insurance Companies pay Commission/fees to Banks for Insurance transactions, referral or introduction in any guise is no more valid.”
Kari warned that NAICOM will not hesitate to impose appropriate sanctions on insurance companies utilising or intending to utilise any institution including banks, airlines, online or web-based aggregators that have not been licensed by the Commission.
On capital, the NAICOM chief said:
“We have quite a number of companies that have either eroded capital base or have miss-matched their assets/liabilities cover, mostly arising from wrong investment decisions.Our concerned is for insurance companies to hold sufficient capital to cover their risk and liabilities when they arise at all times. This is very crucial in turbulence times like the ones we are currently going through. While we are going to develop a full risk-based capital framework to determine regulatory capital, we will be expecting companies to initiate the appropriate capital adequacy reviews and have their actuary report the capital needs of their business in a financial condition report. A guideline of which would be released in due course. “
He added that it is important for all insurers and reinsurers to get used to voluntarily holding capital that will protect policyholders against adverse outcomes that could negatively affect their ability to meet their obligations.
“We are not unmindful of certain challenges the industry is exposed to on daily basis, but we trust that with the current drive and the collaborative approach between the regulator and regulated, these challenges can be overcome to the benefit of the consumer in particular and the Nigeria economy in general. “
