64th Edition Moneycentral 4th April 2022

EDITORIAL

ANALYSIS

NATIONAL

Nigeria’s Debt to GDP ratio to hit 30.50 percent by 2025

These currencies at risk of devaluation based on alternative crypto data

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MARKET MOVING NEWS, DATA & ANALYSIS

Monday 4th - 10th April 2022

Vol. 02, No. 064

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Nigerian airlines could hedge against fuel price as part of cost savings measuresPg 6

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Banks groan under excessive AMCON charges

Pay N850.89bn to AMCON in six years As Corporation outlives usefulness BALA AUGIE

In the last six years, Nigerian banks have incurred N850.89 billion in Asset Management Corporation (AMCON) charges as they groan under the excessive regulatory cost.

Bank insiders, equity shareholders and institutional investors whom MoneyCentral spoke to on this story believe that the Corporation created in 2010 has outlived its usefulness.

Sources tell MoneyCentral that since the Central Bank of Nigeria (CBN) has begun a parallel run of Basel III in November 2021, introducing more stringent measures around capital adequacy, liquidity and leverage, and the new CBN Act also grants powers to the CBN to make banks voluntarily contribute to another sinking fund for resolution purposes, it looks like overkill to continue to have AMCON existing.

The corporation charges 0.5 percent of Banks’ total assets

on and off balance sheet items, which is essentially a penalty on growth. as the higher the assets the higher the charges.

“AMCON was initially meant to have a 10-year lifespan but that was changed for it to have a life of perpetuity,” one source

0.26%

NGX 30 1,784.11

0.75%

by the CBN based on macroeconomic conditions and developments within the financial sector.”

Both buffers are to be made up of Common Equity Tier 1 Continues on page 5

N200

COMPANIES & MARKETS

Energy crisis to balloon banks operating expenses Pg. 7

FCMB makes loss in 3 out of 8 Business Segments Pg. 8 LIFESTYLE

Keeping a Clean and Tidy Home

Pg. 9 MONEYCENTRAL NORTH

2023: Isa Ashiru joins guber race in Kaduna Pg. 12 BOTTOM LINE BONDS/FORWARD

NSE INDICES (WEEKLY) All share 46,842.86

told MoneyCentral.

“Under the new Basel III rules for instance, banks are to hold a minimum capital conservation buffer (CCB1) of 1.0% and a countercyclical capital buffer (CCB2) to range between 0-2.5%.

The CCB2 will be decided upon

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FGN

FX ($/N)

23 -JUL - 30

30- AUG -23

10.87

462.82

COMMODITIES BRENT (ICE) 104.39 USD/bbl

16.26

Bitcoin (BTC)

GOLD Spot 1,925.68 USD/t.oz

4.06

I&E FX Window

$46,541

$ - NGN

416.62

N27.13 M

Turnover

$277.5mn

Nigeria insurers capacity to underwrite new policies decreasing Back page

MARKETS

Access Holdings sees payments, pensions, insurance leading next growth phase PATRICK ATUANYA

Access Holdings (HoldCo) Plc will set up a payments, pensions and insurance business as subsidiaries to help lead its next growth phase.

“In some cases the subsidiar-

ies will be licensed to operate outside Nigeria,” Herbert Wigwe, Chief Executive Officer (CEO) of Access Holdings said at a briefing in Lagos last week.

“We will be growing these businesses organically and inorganically and our investments

in them will be made using our retained earnings,” Wigwe said.

Access recently increased its equity stake in payments firm E-tranzact to 23.8 percent in a bid to play more aggressively in the fintech space. As at 31st December, the fair value of the

Bank’s investment in E-tranzact was N3.16 billion Access has grown rapidly over the past 20 years, going from a small corporate focused bank to becoming Nigeria’s largest bank by assets, achieved largely Continues on page 5

Herbert Wigwe, Chief Executive Officer (CEO) of Access Holdings

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NATIONAL

Nigeria’s Debt to GDP ratio to hit 30.50 percent by 2025 BALA AUGIE Nigeria’s debt to GDP ratio is expected to hit 30.50 percent at the end of 2025 from a current level of 19.10 percent if the present fiscal trends persist, according to investment house, Afrinvest Securities.

Investopedia defines debtto-GDP ratio as an important metric used by economists to compare a country’s gross national debt to its gross domestic product. It measures how much a country owes, in comparison to everything the country produces.

The country has been borrowing to plug a budget deficit since 2016 as the precipitous drop in oil price of mid-2014 that led to a recession in 2016 and the coronavirus pandemic that resulted in economic downturn in 2020 significantly undermined government revenues.

Of course, total Naira value of the debt stock has been growing due to incessant devaluation of the currency by the central bank that has been unable to rein in hot-red inflation.

Foreign exchange (FX) devaluation has also played its part in driving the total Naira value of the debt stock upwards, as the official rate was devalued by 26.1% between

2016 and 2021.

Nigeria’s total debt stock rose 20.2% y/y to ₦39.6tn in FY:2021 from ₦32.9tn in the previous year. Accordingly, its debt-to-GDP ratio increased to 22.8% from 21.6% in 2020, according to data from the Debt Management Office (DMO).

External debt accounted for 40.1 percent of total debt (₦15.9tn or $38.4bn). Domestic debt printed at ₦23.7tn (59.9% of total debt stock).

“We observed that although Nigeria’s debt-to-GDP ratio (22.8%) remains below DMO’s sustainable bench-

mark (40.0% of GDP) and IMF’s threshold for emerging economies (55.0% of GDP), the public debt has more than doubled since 2016, up 127.9%,” said analysts at Afrinest Securities.

While Nigeria’s debt to GDP ratio is one of the lowest in the world, there are concerns the Buhari led administration is piling huge debt on the next generation and another fear is that a new president from his political party (All rogressive Congress) might toe the lane and continue with the borrowing binge.

Perhaps more worri-

some is that the recent surge in crude oil price on the back of pent up demand and the Russian-Ukraine war has not started paving the way for the government to start meeting its financial obligations.

The country’s debt-torevenue ratio printed at 841.5 percent in 2021 implying that the country is borrowing around 8.4x of retained revenue while as of November 2021, debt service to-revenue amounted to 97.5%, as against budgeted provision of 49.1%, according to analysts at Afrinvest Securities.

DIPLOMACY

FINANCE

President Buhari approves re-appointment of New U.S. consulate in Eko Atlantic City, Executive Mgt of NEXIM Bank Lagos to cost $537 million SEUN PETERS

DOZIE IFEBI

The re-appointment of the entire executive management of Nigeria ExportImport (NEXIM) Bank has been approved by President Muhammadu Buhari.

The re-appointment follows the fact that the members of the currentmanagementofthebank were appointed on 10th April, 2017 and their first five-year term isduetoexpireon9thApril,2022.

Those involved in the reappointment comprise Abba Bello, Managing Director and Chief Executive Officer, Bala Bello, Executive Director (Corporate Services), and Stella Erhuvwu Okotete, Executive Director (BusinessDevelopment).

Section 11(4) of the NEXIM Bank Act specifies that the Managing Director and the Executive Directors shall hold office for a period of five years and shall be eligible for re-appointment for a further period of five years.

Accordingly, as the expiration of the first term drew near, it became necessary to appraise their performance since assumption of duties across the core mandate areas of the bank for the purpose of their re-appointment or otherwise.

The outcome of the appraisal revealed that the current management team with

A new United States (U.S.) consulate to be built in Eko Atlantic City a new district in the Nigerian megacity of Lagos, the country’s commercial capital, will cost $537 million.

U.S. Ambassador to Nigeria Mary Leonard, who disclosed the cost of the new consulate, said it is to be built on land reclaimed from the Atlantic Ocean, and would take five years to complete.

This is as Washington strengthens economic and diplomatic relations with Africa’s largest economy.

The U.S. is among the largest foreign investors and donors in Nigeria with annual trade between the two countries at over $10 billion, according to the State Department.

Like most countries, the U.S. has an embassy in the Nigerian capital, Abuja, and a consulate office in Lagos, a sprawling city of more than 20 million people and Nigeria’s major economic hub.

The United States had earlier approved a $319 million contract for the building of a new U.S. Consulate General in Eko Atlantic, developed by South Energyx Nigeria Limited in collaboration with Lagos State.

the support of the board has performed as well as exemplified by key achievements.

Evidently, the operating profit, previously in the negative (N8.030billion) at the inception of the current management, has increased to N3.825billion in 2021, and there is an improvement in returns on capital earnings from -15.31 in 2016 to 2.72 in 2021.

There is a reduction in nonperforming loans from 94% in 2017 to 29% as at December, 2021, and there is an increase in the total assets of the bank by approximately N136.132billion or about 222% from inception of the current management in 2017 to 31st December, 2021.

There is an enhanced liquidity position of the bank through additional funding totalling N103.755billion from Central Bank of Nigeria (CBN), N3.936billion from Federal Ministry of Finance, US$50million from the Nigerian Content Development Management Board (NCDMB) and US$25million from the African Export-Import Bank.

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In a report from the US Department of State, the 12.2acre site for the new U.S. Consulate in Eko Atlantic would be handled by the awardee of the contract, Pernix Federal, LLC of Lombard, Illinois.

The contract was awarded by the US Department of State’s Capital Security Construction Program, known as the Bureau of Overseas Buildings Operations, which was established in 1999.

However, the design architect for the project is Ennead Architects of New York.

The aim of the new Consulate General is to “provide a modern, resilient platform for diplomacy in Nigeria and is expected to be completed in 2027.”

Referring to the choice of Eko Atlantic, the report read, “The location will provide the future diplomatic campus and its neighbors with access to sustainable, modern infrastructure, including an 8.5 km seawall designed to protect the city from rising sea levels and coastal erosion.” @moneycentral4

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TRADE

Obaseki: Benin River Port‘ll boost export earnings, facilitate economic growth, others JESSICA MAURICE The Edo State Governor, Mr. Godwin Obaseki, has said his administration remains committed to the realization of the Benin River Port project considering its economic benefits to the state and country.

The governor said the port project will, upon completion, boost export earnings, expand the economic value chain and open up new business opportunities,createemploymentopportunities,andstimulateeconomic growth and development.

He was speaking at this year’s Annual Investment Meeting (AIM) in Dubai. The governor was pitching for investments in the Benin River Port and seeking foreign direct investments from businesses and organisations in the United Arab Emirates (UAE).

He noted, “We are com-

mitted to the development of the Benin City River Port. This will be the closest port to the center of Nigeria. We have all talked about developing the deep seaport on our coastlines and most of those goods need to get into the country. So, we are using the opportunity of the Benin River to build a river port that is going to be a sister port to the Lekki Deep Seaport to bring goods and containers right into the country from where they will get distributed.”

Obaseki added, “There are four opportunities in the transaction, which is already being finalized. We are looking for the opportunitytodredgetheBenin River.Also,wearelookingforthe opportunity to construct infrastructure for the port itself and construct the accompanying road leading from the port to the city. All of these offer public and private opportunities.”

INFRASTRUCTURE

Gov. AbdulRazaq commended for providing potable water to Kwarans ABDULWAHEED OLAYINKA ADUBI, Kaduna TheGovernorofKwarastate, AbdulRahaman AbdulRazaq has been commended for returninglivestoKwaransthrough the provision of potable water.

The commendation followed the giant strides of the Governor to end age - long water scarcity in the entire Kwara state.

A group under the auspices of Arewa Solidarity Group, explained in a statement signed by its Chairman, Isa Ahmed that it was another emotional moment that speaks eloquently to how far the state has risen from the stagnation and blacklist of the past.

According to the statement titled ‘Water For All’, the group

also commended the completion of comprehensive rehabilitation of Lafiagi waterworks.

“The water projects that are currently going on across Kwara state are part of efforts of the AbdulRazaq led administration to provide portable water to Kwarans.

“Ore Ofe community in Asa Local Government Area is one of the beneficiaries of the ongoing water for all initiative. “ The provision of clean water for domestic use returned to the streets and households in Offa and environs after over seven years of water scarcity in the ancient town courtesy of the unrelenting efforts of the Kwara state Government under the leadership of Governor AbdulRazaq which has fixed Oyu waterworks,” the group disclosed.

MARITIME

Barge operations critical to reducing gridlock on ports access roads - NIMASA DG SEUN PETERS The Director General of the Nigerian Maritime Administration and Safety Agenc y (NIMASA), Dr. Bashir Jamoh noted that a well-regulated barge operating industry in the maritime sector is critical to ending gridlocks on ports access roads in Nigeria.

The NIMASA DG stated this when he played host to the Barge Operators Association of Nigeria (BOAN) led by the President, Hon. Bunmi Olumekun at the head office of the Agency in Lagos.

“Barge operations have

helped to reduce gridlocks in Apapa, as they are involved with the transportation of container goods from one point to another within the inland waters, thereby putting less pressure on our roads, while also contributing their quota to national economic development”, Jamoh remarked.

Speaking further, the NIMASA DG urged the operators to invest in modern state of the art barges that can enable them compete favourably with their foreign counterparts, as this will help them remain in business and protect them from foreigners taking over their jobs.

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Taking the ‘Russophobic’ threat seriously The face-off between Russia and Ukraine has not only resulted in a physical war, but has gradually turned into a cyber war and seemingly creating cybersecurity tensions for many countries, writes EHIME ALEX Recently, the United States called on private companies and organisations to “lock their digital doors”, on the claim that Russia was planning a cyberattack on the country, according to a report by the British Broadcasting Corporation. The United Kingdom’s cyber authorities are supporting the White House’s call for increased cyber security precautions, it added.

But Russia denied the accusations, which it tagged “Russophobic”, as no country had stated precisely or given any evidence of cyber attack. It claimed it was an intelligence suggestion.

Russia remains a cyber superpower with a serious arsenal of cyber tools, as well as hackers capable of disruptive and potentially destructive cyber attacks, BBC noted.

This is even as CNBC also reported, recently, that hordes of Ukrainian coders were splitting their time between their daily jobs and a cyber war with Russia.

“Over 311,000 people have joined a group called ‘IT Army of Ukraine’ on the social media platform, Telegram, where Russian targets are shared.”

Cyber security incidents are a matter of “when”, not “if ”, said Gartner, a technological research and consulting firm.

A report by the company shows that 10 per cent of breaches involved ransomware in 2021 and the number is expected to rise in 2022, urging all security and risk management leaders to be prepared.

Already, there is a projection

by Cybersecurity Ventures that cybercrime will cost companies worldwide an estimated $10.5tn yearly by 2025, from $3tn in

2015, at a growth rate of 15 per cent year over year.

Increasing cyber threat In its 2021 edition, the African Cyberthreat Assessment Report had identified online scams, digital extortion, business email compromise, ransomware and botnets as the five most prominent threats in Africa.

PricewaterhouseCoopers, a multinational professional services network of firms, in its 2022 Global Digital Trust Insights, stated that while 2021 was shaped up to be one of the worst on record for cybersecurity, the risks are increasing.

According to PwC, more than 50 per cent of the organisations it surveyed expect a surge in reportable incidents in 2022 above 2021 levels.

“The consequences for an attack rise as our systems’ interdependencies grow more and more complex. Critical infrastructure are especially vulnerable. Yet, many of the breaches we see are still preventable with sound cyber practices and strong controls,” PwC, considered as one of the Big Four accounting firms, stated.

Sound cyber practices According to the Financial Crimes Enforcement Network report, the average amount of reported ransomware transactions per month in 2021 was $102.3m.

The year witnessed unparalleled ransomware attacks with the rise of Ransomware-as-a-Service groups on the darkweb.

Following Russia’s invasion of Ukraine, FinCEN raised the alarm that a cybersecurity threat might emanate from the aggression, warning financial institutions to be vigilant against efforts moneycentral

to evade the expansive sanctions and other U.S.-imposed restrictions in connection with the invasion.

It urged financial institutions to refer to its previous reports and other relevant recent resources, noting Russian and other ransomware and cybercrime activities for a range of indicators to help detect, prevent, and report potential suspicious activity.

Cyber-precaution The Nigeria Cybersecurity Landscape in 2022 would be interesting for both sides of the divide – the threat actors and the “defenders”, Deloitte Nigeria envisaged in its Nigeria Cyber Security Outlook 2022, urging organisations to re-strategise to catch up and protect themselves.

According to the company, one of the specific events likely to be witnessed is that as partnerships among businesses increase in 2022 and beyond, third party risks will be one of the items on the front burner for many organisations in Nigeria when planning to manage cybersecurity.

According to Deloitte, 2022 is not a year to live in denial regarding the impact of cybersecurity on businesses or organisations, as no organisation is too small or too big to be attacked.

It added, “To properly manage the risks associated with third parties, organisations should consider business continuity, interface security and integrity, personnel security, and information security hygiene.”

Ahead Nigeria’s general elections Digital activism has transformed cybersecurity in the last moneycentralng

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two decades, becoming more prominent now with social media being its primary weapon.

This could be attributed to the fact that many have considered social media a relatively safer and quicker space to run campaigns and protests, as there is a large base of Internet users.

Deloitte stated, “In the last decade, Nigeria recorded several notable digital activisms via social media, such as the #BringBackOurGirls and the #EndSARS movement of 2020, which raged across the world with nearly 30 million tweets in 48 hours.

It is noteworthy that even the popular nationwide movement of 2012, Occupy Nigeria, was greatly inspired by social media.”

In addition to social media activism, the firm warned that government and public institutions were likely to face cyber attacks from hacktivists, “mainly consisting of disgruntled Nigerian youths geared towards making loud statements against the current socio-economic issues they face, as in the case of the #EndSARS.” As it happened in the U.S. elections in 2020, where a lot of fake news were published to discredit the two leading contenders, Deloitte envisaged a spike in the number of fake social media accounts that would be opened to propagate misinformation in Nigeria.

It added, “The Nigerian government would have to take case studies from the experiences of the U.S. and other countries. As we approach the 2023 elections, we can expect to see a new wave of various socio-political movements and hacktivism, and we expect public institutions to moneycentralng

improve their cybersecurity posture in preparation for these.”

Investments Investments need to continue to pour into cybersecurity, says PwC. It reported that 69 per cent of organisations predict a rise in cyber spending in 2022 compared to 55 per cent in 2021.

Also, that more than a quarter or 26 per cent of the organisations surveyed predict cyber spending hikes of 10 per cent or more as against eight per cent last year.

At the seventh edition of the Dakar International Forum on peace and security in Africa, the Founder of Ciberobs, Franck Kie, said “the time has come for Africa to act” in terms of regulation, investment in infrastructure and human resources to address the challenges of cybersecurity.

According to Kie, in the last 20 or 30 years, Africa has had the opportunity to think about the future threat of cyber attacks, which could have resulted in many things that could have been avoided as of now.

He told CNBC Africa that the perfect time for Africa to take action in terms of regulation, in terms of investment in infrastructure and human capacity could be grabbed now to prepare ahead of the next 10 or 20 years and save the continent from any huge issue that might arise in future.

He said, “Today, the cyber space is occupied by many entities and organisations, even governments, and we must, right now, take some actions to avoid being in a catastrophic situation in the next few years.

“If Africa is determined to tackle the issue of cyber security, then it must invest massively in its youth population.”

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ANALYSIS

These currencies at risk of devaluation based on alternative crypto data TELLIMER RESEARCH

In the wake of currency devaluations this month in Egypt and Sri Lanka, we attempt to identify currencies that may be at risk of devaluation based on the existence of a parallel market premium, which is oftentimes a clear, if imprecise, indicator that a currency is overvalued and/or suffering from FX shortages in the official market.

While some countries (like Lebanon and Argentina) have reliable parallel market data, others (like Nigeria and Ethiopia) have cracked down against parallel market data providers, and there are those (like Sri Lanka) that do not have a reliable data series but instead rely on anecdotal evidence to give a rough approximation of the parallel market exchange rate.

Fortunately, there are ways to proxy the parallel market premium. One is by visiting crypto trading platform Binance P2P and examining quotes against Tether (USTD), a cryptocurrency that is pegged to the US$. This provides a rough approximation of where a given currency may trade against the US$ in the parallel market, if such a market exists.

We calculate a parallel premium proxy for a sample of 60 emerging and frontier markets, defined as the latest bid quote (or an average of latest quotes if there is significant dispersion) divided by official currency mid quote on Bloomberg. We exclude countries with less than

3 quotes at the time the data was collected.

While this data should be seen as a rough approximation, in our experience it tracks quite closely with other parallel market indicators for countries where such data exists (such as Argentina, where the blue chip rate on Bloomberg – .AREQIMP G Index – which proxies the parallel exchange rate, closed at c191 yesterday versus c190 for our Binance P2P proxy).

Access Holdings sees payments, pensions...

Continued from page 1

through acquisitions of Intercontinental and Diamond Bank.

Wigwe is not concerned about competing with the dominant players currently in the sectors the bank is targeting, citing Access Bank’s history of execution.

“We have come to compete and are not worried about anyone,” Wigwe said.

Access Holdings (HoldCo) entire issued share capital of 35,545,225,622 ordinary shares of 50 Kobo each were on 28 March 2022, listed on the Daily Official List of NGX at N9.95 per share.

The delisting of Access Bank and listing of Access HoldCo on the NGX is pursuant to the Scheme of Arrangement between

Access Bank Plc and the holders of its fully paid ordinary shares of 50 Kobo each as approved by the Securities and Exchange Commission and sanctioned by the Court.

Access Bank Plc had earlier announced that it has received the Central Bank of Nigeria’s Approvalin-Principle for the Bank’s restructuring to a holding company (“HoldCo”).

The proposed HoldCo structure would enable the Bank to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance and Africa expansion.

Rest of Africa operations now make up 30 percent of operations for Access Bank , Wigwe said.

Access trades at less

That said, given the rough nature of the data and lack of liquidity versus the USDT for many of the currencies in question, we assume that any misalignment of less than 10% is within the margin of error and indicates that a parallel market does not exist. The results are below: We find that the Argentine Peso (ARS) has a c70% premium, while the Ethiopian Birr (ETB), Algerian Dinar (DZD), and Ni-

than 1 times book value and has a market capitalization of N353 billion.

This compares with rivals Guaranty Trust Holding Company PLC (GTCO) and Zenith Bank which have market capitalizations of N685 billion and of N729 billion, respectively.

Wigwe acknowledged that Access Holdings stock is still undervalued by the market, for now. “We believe that will be corrected over time as we continue to execute on our plans,” he said.

Wigwe identified ability to retain talent due to brain drain and security from cyber attacks as the major challenges the bank faces as it goes about executing its growth strategy, but believes the bank is well positioned to overcome them.

“We want to be among the top 5 banks in Africa by 2027,” Wigwe said.

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gerian Naira (NGN) all have a c40% premium. The Sri Lankan Rupee also has a c28% premium, despite the recent devaluation, though given the size of its external imbalances it is likely that the parallel market has temporarily overshot fundamentals.

Other currencies with a premium above 10% include the Myanmar Kyat (MMK), at c16%, and the Ukrainian Hryvnia (UAH) and Laotian Kip (LAK), at c12% each.

Conversely, the only currency

trading at a notable discount is the Russian Ruble (RUB), at c25%, indicating that the steep official devaluation may have overshot fundamentals.

Overall, our data highlights the ARS, ETB, NGN and DZD as the most overvalued currencies, suggesting that devaluations may be required for these currencies to contain external imbalances and bring more FX trading activity from the parallel to the official market.

Banks groan under excessive AMCON...

Continued from page 1

capital, MoneyCentral understands.

Further data gathered

by MoneyCentral shows the largest financial institutions by market capitalization and total assets collectively incurred N205.30 billion in AMCON charge in 2021 alone, which is 24.56 percent higher than 2020’s N164.2 billion.

Ass et Management Companies when introduced as a resolution mechanism for bad loan crises are often temporary, according to global best practices.

The Thailand Asset Management Company (TAMC) was established in 2001, following the Asian financial crises of 1997. Banks were required to transfer NPLs to the TAMC; private institutions were also eligible to transfer assets that met a more @moneycentral4

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stringent set of criteria.

The TAMC could restructure debt, reorganize businesses, and foreclose and dispose of property.

The TAMC had a predefined profit/loss sharing arrangement to be calculated at the fifth and tenth years of operations. The TAMC ceased operations in June 2011 and completed liquidation by June 2013. Over its ten-year lifespan, 780 billion baht (approximately $17.3 billion USD) in book value of assets were transferred for an approximate purchase price of 265 billion baht.

In 1998, Indonesia’s banking sector was undercapitalized, under regulated, and suffering from an excess of nonperforming loans (NPLs).

In response, the Indonesian government devised the Indonesian Bank Restructuring Agency (IBRA)

and its Asset Management Unit/Asset Management of Credits (AMU/AMC) as part of a three-pronged government emergency plan, along with a blanket guarantee of the debts of all domestic banks and a framework for corporate restructuring.

The AMU/AMC acquired and managed nonperforming loans from a variety of Indonesian banks and attempted to dispose of them. The AMU/AMC had acquired nearly IDR 400 trillion (approximately $86 billion) in face value of loans

by April 2003. The AMU/ AMC was wound down on its initially scheduled end date of February 27, 2004.

In Malaysia where Nigeria closely modelled its AMCON, Danaharta was established as a national asset management company as a part of the Malaysian government’s Continued on page 15

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EDITORIAL

Publisher/Partner PATRICK ATUANYA Editor BALA AUGIE, ACA Business Development ABDULAI OTONO Online Editor SEUN PETERS Circulation Manager ARAINO EDWARD OKE Advert Manager PRECIOUS EKOGIAWE Subscription Manager NGOZI OGBERE Bureau Chief North NATHANIEL GBAORON Analysts JESSICA MAURICE AKIN AKINBOBOLA OJOMA YUSUF ABDULWAHEED OLAYINKA ADUBI Abuja Bureau Chief IFEBI DOZIE Editorial Advisory Board Cheta Nwanze Prof. Yomi Fawehinmi Enquiries News Room: 09018867058 Advertising: 08169609331 07034994168 Subscriptions: 08037245450 www.moneycentral.com.ng 51 Road, House 35 Festac Town, 102102 Lagos, Nigeria 161c Raufu Taylor Close, off Idejo Street, Victoria Island, Lagos.

Nigerian airlines could hedge against fuel price as part of cost savings measures Kenya Airways’ latest moves to hedge against fuel prices as part of measures to reduce operating costs is a model Nigerian airlines can tap into.

This is because airlines in Africa’s largest economy have hiked fares and even threatened to halt operations over skyrocketing aviation fuel prices.

Kenya Airways announced last week that the board of directors of have approved a plan aimed at hedging prices for 35% of the airline’s fuel needs. This is with the view of making sure that the company which has been recording losses since 2013 reverts to profitability and starts paying dividend to its owners.

It must be noted that deprecation and fuel costs make up over 50 percent of the total operating costs of an airline.

A few weeks ago, the Nigerian Civil Aviation Authority said it might be forced to ground some airplanes over the inability of local airlines to maintain them due to the rising cost of JetA1, also called aviation fuel.

The price of aviation fuel increased from N190 to N670 per litre, according to local airlines under the aegis of Airline operators of Nigeria.

A cursory look at the 2019 audited financial statement of the only listed airline in Nigeria (Med-View Airline) will give insight into what the books of operators look like.

Med-view has negative retained earnings of N7.55 billion as at December 2019 that means it has been re-

cording losses rather than profit throughout its existence. It is technically insolvent because its total liabilities of N19.68 billion exceeds total assets of N17.02 billion, resulting in negative shareholders’ funds of N2.67 billion.

It is noteworthy that Medview has liquidity challenges and it is struggling to meet its short-term obligations to suppliers as total current liabilities exceed total current assets, and that led to negative net working capital of N16.62 billion as at December 2019.

It owes suppliers N17.02 billion while obligations more than one year stood at N1.80 billion.

The beleaguered airlines took their case to the National Assembly two weeks ago as they demanded operational licenses from the federal government to begin importation of fuel or Airlines in Nigeria shut down, following the recent fuel scarcity across the country.

Airpeace Chairman, Allen Onyema, warned that

Airlines in the country would shut down operations over the non-availability of Aviation fuel to run their operations.

‘We have only three more days, all airlines in Nigeria will shut down. We are not threatening this country, it is a fact,” Onyema said. ”I have the mandate of all airlines to demand that Airlines begin importation of fuel, if we can buy planes worth millions of dollars, we can also import fuel ourselves. Let NNPC give Airlines licenses, we want to import ourselves,” Onyema insisted.

Airline operators in Nigeria recently alleged hijacking of the aviation fuel supply chain , thereby driving up the price through artificial scarcity.

The operators also expressed worry over the safety of airlines in Nigeria, adding that they were disturbed in the face of continuous hike in the price of aviation fuel.

The operators said this during a hearing by the House of Representatives ad

hoc committee investigating the scarcity of aviation fuel.

However the airlines may also not be totally above board in their dealings as they want the public to believe.

Nigeria’s Competition agency recently came out to accuse domestic airlines of collusion to hike prices.

The Federal Competition and Consumer Protection Commission (Commission) said it became aware that domestic airlines purportedly under the aegis of the Airline Operators of Nigeria (AON) (a trade association for domestic airlines under the Federal Competition and Consumer Protection Act, 2018 (FCCPA)) after a series of meetings decided to coordinate their conduct resulting in setting of air fares.

It said Air Peace, Azman Air and United Nigeria Airlines immediately proceeded with the increase and Arik followed suit. Aero Contractors then informed its trade partners (travel agents) and its commercial executive team by email that ticket

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fares were reviewed effective February 18, 2022 with the least fare being N50,000 across all routes, according to the FCCPC. Within days, Max Air also increased fares to the same minimum N50,000.

Ibom Air and Dana approximately 48 hours after what appears to be the initial coordinated conduct, also increased fares although not to the purported N50,000 minimum.

Green Africa Airlines maintained its existing fares between N33,000 and N38,650 but has progressively increased its fares rising to approximately N47,000 on its Lagos-Abuja route on Wednesday, February 23, 2022, the FCCPC.said.

If the allegations by the FCCPC.are true it would be disheartening for an industry that has received billions of naira in bailout funds from the Central Bank of Nigeria to collude against Nigerians.

Nigerian Airlines need to embrace global best practices and think outside the box if they want to survive.

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COMPANIES &MARKETS

7

Monday 4th - 10th April 2022

BONDS/FORWARD

NSE INDICES (WEEKLY) All share 46,842.86

0.26%

NGX 30 1,784.11

0.75%

FGN

FX ($/N)

23 -JUL - 30

30- AUG -23

10.87

462.82

Bitcoin (BTC)

COMMODITIES BRENT (ICE) 104.39 USD/bbl

16.26

GOLD Spot 1,925.68 USD/t.oz

4.06

Energy crisis to balloon banks operating expenses

...Big banks’ diesel/maintenance costs make up 14.12 percent of operating expenses BALA AUGIE The energy crisis as evidenced by the skyrocketing price of diesel oil will further balloon the operating expenses of banks, forcing them to embark on cost cuts to meet profit targets.

Tier 1 lenders (Zenith Bank, Guaranty Trust Holding Company or GTCO, United Bank for Africa or UBA, Access Bank, and FBN Holdings) spent N114.74 billion on fuel, repairs, and maintenance, which is 14.12 percent of other total operating expenses of N835.47 billion as at December 2021.

Of course, there are indications that lenders’ cost to income ratio will continue to rise because companies are spending more fuel to run offices and branches across the country as the price of diesel oil has been spiking on the back of the rally in crude oil price brought on by the war in Eastern Europe.

The price of diesel rose from N300 at the beginning of the year to over N700 per litre, putting the cost beyond the reach of most consumers. And it now sells for around N800.

The fuel shortage forced some GTCO branches to close across the country at 1pm, and many of them have

intensified their cost control strategies.

“Energy costs could balloon operating expenses,” said Segun Agbaje, chief executive officer Guaranty Trust Holding Company (GTCO) Plc. Nigerian Economist and businessman, Tony Elumelu recently lamented over the worsening electricity blackouts, hike in prices of diesel, and its effect on businesses in the country.

The CEO of Heirs Holdings in a series of tweets said businesses are suffering under the situation with Nigerian citizens groaning under food inflation as well.

The big banks collectively incurred N1.32 trillion in total operating expenses (staff cost plus other operating expenses), which is 47.52 percent of 2020’s N943 billion,

according to data gathered

by MoneyCentral.

Nigerian lenders are beset by several regulatorimposed difficulties that are undermining the net interest margins and return on equity, but they have good asset qualities and solid balance sheet which makes it easier for them to surmount macroeconomic headwinds.

Zenith Bank spent N20.65 billion on fuel, repairs, and maintenance, which is 11.15 percent of other operating expenses. Total operating expenses were up 11.68 percent to N285.75 billion as at December 2021.Its cost to income ratio increased to 50.80 percent in December 2021 from 50.0 percent the previous year.

Access Bank incurred N20.10 billion on fuel, re-

pairs, and maintenance, which is 8.66 percent of other operating expenses. Total operating expenses were up 13.67 percent to N371.14 billion in December 2021 from N326.50 billion the previous year.

United Bank for Africa (UBA) spent 27.97 billion on fuel and maintenance, which is 17.16 percent of other operating expenses.

Total operating expenses increased by 11.67 percent to N279 billion in December 021 from N249.84 billion the previous year.

GTCO incurred N9.65 billion on energy, and that represents 10.31 percent of other operating expenses.

Total operating expenses 11.65 percent to N162.26 billion in December 2021 from N145.32 billion as at December 2020.

BONDS

InfraCredit, African Trade Insurance Agency (ATI) sign Mou ...to deepen local currency infrastructure debt financing in Nigeria JESSICA MAURICE InfraCredit, a specialised infrastructure credit guarantee institution in Nigeria and the African Trade Insurance Agency (“ATI”), a pan-African multilateral development finance institution that provides risk solutions, have signed a Memorandum of Understanding (“MoU”) on Cooperation as risk-sharing

partners to unlock access to long-term local currency debt financing for infrastructure development in Nigeria.

Under the MoU, InfraCredit and ATI will collaborate and work together as risk-sharing partners, within the context of their respective mandates, policies, resources and instruments, to provide credit guarantees, co-guarantees and counter-guarantees/ reinsurance, as applicable, on eligible infrastructure financing transactions.

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moneycentralng

As a demonstration of the potential impact of their strategic partnership, InfraCredit and ATI recently entered into a risk sharing arrangement on a 10 year 10-billion-naira infrastructure bond (US$24 million equivalent).

The bond was issued in February 2022 by a Nigeria based digital telecommunications infrastructure

@moneycentral4

I&E FX Window

$46,541

$ - NGN

416.62

N27.13 M

Turnover

$277.5mn

FX

ABCON seeks CBN’s support for BDCs to meet retail end FX demand •Advocates BDCs’ inclusion in dollar supply mechanisms SEUN PETERS The Association of Bureaux De Change Operators of Nigeria (ABCON) has solicited the Central Bank of Nigeria (CBN) support in ensuring that Bureaux De Change (BDCs) continue to sell dollars to retail end forex buyers.

In a notice to its members released at the weekend, ABCON National Executive Council (NEC), appealed to the regulator to revisit the stoppage of dollar sales to BDCs, to bring lasting stability to the naira.

The group disagreed with claims that naira has remained largely stable and converging following the stoppage of dollar allocation to BDCs. According to ABCON NEC, BDCs remain the most potent tool for the CBN to achieve its foreign exchange rate management.

“Our position to CBN is that our members should be considered in whatever mechanism of dollar supply to the end users as it is done in other countries instead of a total blanket removal from the market. We therefore reject the statements claiming that the naira exchange rate has improved following stoppage of dollar sales to BDCs and urge our members to ignore those pronouncements,” it said.

The ABCON NEC said it will continue to take steps that ensure that the business of its members are restored and operators continue their legitimate operations as is done

in other parts of the world.

“We the EXCOS are not sleeping on our responsibility to ensure that our members’ businesses are sustained. We therefore call on all our members to continue to ignore statements against the BDCs and continue to give us the necessary support in ensuring normalcy is restored to the market,” the statement said.

It added that the ABCON management will continue in its collaboration, lobbying, media campaign and stakeholders’ engagements to ensure that BDC operators are given the right support and opportunity to thrive as is done in several other economies in the world.

ABCON NEC said the BDC sub-sector is not responsible for naira exchange rate volatility. “The naira exchanges at N416.25/$ at the official market. However, at the parallel market, where majority of forex is sourced by manufacturers and retail end users, the naira exchanges at N587/$, representing over N170 premium between both markets,” the statement said.

ABCON NEC said: “ It is on record that the stoppage of FX sales to BDCs did not only create higher demand pressure but also made the value of our national currency useless.”

“It is also a reality that the majority of Foreign Exchange Retail End- Users can not meet their demands from the preferred professional banks,” the statement said.

company, a first-time issuer in the debt capital markets.

InfraCredit provided a first loss guarantee for the infrastructure bonds, while ATI provided a second loss counter guarantee on 50% of principal repayments on the bonds to InfraCredit.

The infrastructure bond was rated “AAA” by Agusto and Co. and GCR, and was oversubscribed by domestic pension funds.

Speaking on the occasion of the signing of the MoU in Nairobi, the Chief Executive Officer of InfraCredit, Chinua Azubike, stated that “One of the vital strategies of InfraCredit towards addressing the

significant infrastructure financing deficit in Nigeria is to grow our guarantee capacity through risk sharing partnerships with development finance institutions like ATI, by leveraging their capacity to share our long-term risks. The success of our initial risksharing transaction serves as a strong demonstration effect of the potential impact. Our aim is to scale up towards underwriting larger infrastructure projects and mobilising more domestic credit from local institutional investors to support key priority infrastructure sectors in Nigeria.”

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MoneyCentral www.moneycentral.com.ng

Monday 4th - 10th April 2022

COMPANIES

Cadbury Nigeria posts N42.37bn turnover in FY 2021 JESSICA MAURICE

Cadbury Nigeria Plc, a subsidiary of Mondelēz International, has reported gross earnings of N42.37billion for the full year ended December 31, 2021.

The turnover translates to 19.67 per cent growth, when compared to N35.41billion earned in the same period in 2020.

This is contained in the Company’s audited financial result.

In a statement, the Company said its pret a x p ro f i t g re w f ro m N408.065 million in 2020, to N1.097billion in 2021, representing an increase

of 169.05 per cent.

The Company added that it continues to maintain a strong balance sheet with total assets of N43.688billion, which represents an increase of 31.55 per cent when compared to N33.210billion recorded in December 2020.

In the statement, Mrs. Oyeyimika Adeboye, Managing Director, Cadbury Nigeria, attributed the Company’s strong performance in 2021 to the effectiveness of its strategy and capacity to generate sustainable revenue.

She said: “Despite the tough operating environment characterised by high cost of doing business, ris-

ing inflation, high cost of fund, difficulty in accessing forex, and policy inconsistency, which increased our manufacturing, selling and distribution expenses, we

recorded an appreciable increase in our topline growth, which is our highest so far.”

However, Mrs. Adeboye said the Company’s export business was impacted

AWARDS

MARKETS

Suspension on Wema Bank shares Tony Elumelu tells TIME100 impact Awards Gala: lifted after capital restructuring The world is in need more than ever before PATRICK ATUANYA

SEUN PETERS

Trading on the shares of Wema Bank has resumed following a successfully concluded capital restructuring.

This follows the full suspension placed on trading in the shares of Wema Bank Plc, on Tuesday, 8 March 2022, in preparation for the share reconstruction of the Bank’s issued and fully paid shares.

The reconstruction entailed going from 38,574,466,082 ordinary shares of 50 Kobo each to 12,858,155,360 ordinary shares of 50 Kobo each in the ratio of one (1) for every three (3) shares held.

When philanthropist Tony Elumelu took the stage at last week’s TIME100 Impact Awards and Gala, he spoke with a sense of urgency.

“The world is in need of people like us—more than ever before,” he said to the crowd, which included celebrities, politicians and prominent business leaders.

“We should pull resources together, we should commit now to help in any way possible in economically

The entire listed old shares of 38,574,466,082 units of N0.50 at N0.92 each have now been delisted from the Daily Official List of Nigerian Exchange Limited (NGX) on 30 March 2022.

NGX also relisted on the Daily Official List the reconstructed shares of 12,858,155,360 units of N0.50 at N2.76 each, and lifted the full suspension placed on Wema Bank Plc’s shares.

MTN named best tax compliant organisation in Nigeria MTN Nigeria Communications Plc (MTN Nigeria) has been recognized with two awards at the recently concluded National Tax Dialogue Event organized by the Federal Inland Revenue Service (FIRS).

The second edition of this stakeholder engagement forum was held at the Banquet Hall, State House Presidential Villa Abuja, with his excellency, PresidentMuhammaduBuhari as the special guest of honour.

MTN Nigeria was applauded as the most tax compliant organization and a top 20 taxpayer in Nigeria for the 2021 tax year. These awards reflect MTN Nigeria’s remarkable performance in remittance of its taxes despite the challenges posed by the pandemic.

In 2021, MTN Nigeria’s total tax contribution to all government agencies including the FIRS amounted to

from Ghana via sea freight, following the introduction of new transit charges on trucks by the Government of the Republic of Benin, in June 2021.

in the less fortunate places in the world.

The Nigerian entrepreneur paid tribute to the “hard working young men and women in Africa who aspire to help their families and their communities.”

He shared his story of rising from a modest beginning to launching the Tony Elumelu Foundation in 2010, which is aimed at creating “significant opportunities and economic hope for others” while “helping redefine how all of us need to work together to uplift through the message of entrepreneurship.”

The foundation has given $5,000 each to 15,000 young entrepreneurs from 54 African countries as part of his effort to grow the entre-

preneurial spirit in Africa and encourage economic development.

In addition to his philanthropic efforts, Elumelu serves as chair of the United Bank of Africa, where his vision for securing long-term investments from the private sector to drive economic development in Africa has helped create new job opportunities and turn the continent into a hub for innovation.

Elumelu at the TIME100 stressed that Africa, and the world, need investment and opportunities more than ever.

“In the 21st century, there’s so much poverty, sickness, and bitterness in the world,” he said. “Our calling should be one that has to prioritize humanity.”

BANKS

TAX

SEUN PETERS

empowering others.”

Elumelu’s plea is part of the reason he was on the stage at the Museum of the Future in Dubai in the first place. The TIME100 Impact Award recipient has spent his career advocating for economic empowerment

by volatility in forex rate and the perennial port congestion in Apapa, Lagos State, noting that the Company has been shipping its products to and

N757.6bn while FIRS collected a total of N6.4 trillion tax revenue in the year.

Specifically, MTN Nigeria paid a total of N618.7bn in direct and indirect taxes to the FIRS in the 2021 tax year, representing approximately 13.5% of the total FIRS collection for the year.

“I am delighted at our performance and recognition at this year’s National Tax Dialogue event. While the past 24 months have been challenging for our country and nations worldwide, we are committed to supporting the Federal Government’s ongoing Economic Growth Recovery Plan (EGRP), said Modupe Kadari, Chief Financial Officer (CFO), who received the awards on behalf of MTN Nigeria.

MTN Nigeria last year paid a total sum of N71.9 billion to renew its Unified Access Service (UAS) license and spectrum licence for wireless for a further ten-year period starting 1 September 2021.

ENERGY

FCMB makes loss in 3 out of 8 Business Segments JESSICA MAURICE

WhileFirstCityMonument Bank (FCMB) Group eked out a slim profit in its audited 2021 fullyearresultsreleasedFriday, it happened to report a loss in 3 out of 8 business segments of the Group.

The loss positions were reported in the commercial banking, corporate banking and institutional banking segments, MoneyCentral’s deep dive into the financials reveals.

Commercial banking reported a loss of N673.7 million, corporate banking a N9.34 billion loss and institutional banking made a loss of N700 million. The corporate banking segment had the second highest reportable assets at N603.6 billion for the Group.

FCMB as a whole reported pretax profit of N22.71 billion, which was up just moneycentral

moneycentralng

3.67 percent compared to 2020. The commercial banking segment provides banking services to Small and Medium Enterprises (SME) and commercial registered businesses with an annual turnover between N2.5bn and N5billion.

Corporate Banking incorporates direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products.

The corporate banking business unit caters for the specific needs of companies and financial institutions with an annual turnover in excess of N5 billion.

Institutional banking includes government financing, financial institutions, and multilateral agencies.

The business unit caters for governments at the various levels and their agencies, according to FCMB. @moneycentral4

OPEC+ sticks to planned output hikes despite rising oil prices SEUN PETERS OPEC and its allies stood back from the crisis engulfing oil markets, refusing to deviate from their schedule of gradual production increases as the U.S. considered an unprecedented release from emergency crude stockpiles.

The cartel ratified the 432,000 barrel-a-day supply increase scheduled for May at an online meeting on Thursday, according to a statement.

The decision was in line with expectations and very much peripheral to the main driver of prices on the market — President Joe Biden’s plan to release about 1 million barrels a day from crude reserves for several months to ease the disruption caused by Russia’s invasion of Ukraine.

Brent crude, the international benchmark, was down 5.6% at $107.05 as of 1:05 p.m. in London.

Consumers are taking matters into their own hands because the Organization of

moneycentralng

Petroleum Exporting Countries and its allies are resisting being drawn into the political crisis caused by the military aggression of one of their leading members.

The relationship with Moscow has been significant both economically and politically for the group as a whole, but especially for key members Saudi Arabia and the United Arab Emirates.

The alliance has allowed the two Persian Gulf exporters to bolster their control over world crude markets while lessening their reliance on Washington.

That’s been particularly critical for Riyadh as early in his presidency Biden sought to sideline Crown Prince Mohammad bin Salman following the killing of columnist Jamal Khashoggi.

MoneyCentral www.moneycentral.com.ng

9

Monday 4th - 10th April 2022

LIFESTYLE

About Arteriors By Ella Hi! I’m Stella, Director, Arteriors By Ella. I am an interior decorator by passion and a picture perfect planner & organizer. Arteriors

By Ella is the vehicle through which I feed my penchant for delivering elegant, sophisticated and inspiring interiors with memorable experiences.

Arteriors By Ella is an Interior Design and Decoration outfit primarily focused on helping clients create lasting impressions in their home spaces. We aim to consistently deliver innovative and impactful interiors by infusing our touch of originality and innovation into every project, whilst upholding our commitment to quality operations and exceptional service to our clients.

Follow us on Instagram: @arteriorsbyella and Facebook: @ArteriorsbyElla Contact us on 0905 264 9830 or hello@arteriorsbyella.com.

Keeping a Clean and Tidy Home

BY STELLA CHIBUIKE-EZIKE, DIRECTOR, ARTERIORS BY ELLA

What makes a Clean House?

“My idea of a superwoman is someone who scrubs her own floors.” …No one said it better than Bette Midler on keeping the home clean. It feels good to always step into and be in a tidy and organized space. This however takes some effort to achieve particularly for those that lead a busy lifestyle.

For most of us, the familiar drill begins with a new week of spotless and impeccable home space, with literally no litters on the floor, thanks to a weekend spent cleaning. By midweek however, the furniture begins to gather some dust, the laundry begins to pile up, other kinds of mess and clutter can be found lying around in corners and its beginning to feel like…here we go again! (rolls eyes).

How do we ensure our space is free of untidiness and disorganization all week long?

The tips below give us some ideas.

Home Cleaning Tips 1. Make Your Bed: An unmade bed projects your room as disorderly. This is because the bed is the focal point of the room and when it is unmade, the entire space looks messy.

Making your bed in the mornings has also been linked to higher productivity and energy levels, required to keep you in a positive mindset throughout the day.

2. Clear Tables of Clutter: Dressers, bedside tables, countertops, etc. are visible surfaces that are typically utilized in the home when getting ready for the day in the mornings. Make sure you put away every item that was used safely in its place and wipe the surfaces clean before setting out as clutters like these accumulate and generate dust over time.

3. Daily Laundry: At first, this may not seem as easy as it sounds but it is definitely a great habit to develop, where possible. You can have a daily wash routine either in the mornings or evenings, depending on what your schedule allows. Also make sure you fold/iron and arrange neatly in wardrobes afterwards.

4. Clean/Clear as you

Cook: Develop the habit of cleaning and clearing as you cook. Do not allow the dishes pile as this not only creates a messy kitchen, but also makes the process of cleaning afterwards overwhelming and exhausting. Appliances such as microwaves and blend-

moneycentral

ers should be cleaned and returned immediately. Yes, it is tempting to dump them for later but this is for your own good, trust me!

5. Hang Clothes and Return Shoes: Do not throw your clothes on the chair and toss your shoes away when

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@moneycentral4

you return home. Hang your clothes back and place your shoes in the rack neatly after they must have been cleaned of loose dust and soil. You can sun dry your clothes before hanging them if they are not going to the dry cleaners; else put them either in a distinct section of your wardrobe or into a dedicated laundry basket.

6. Sweep and Mop: Sweep and mop high foot traffic areas like the kitchen and bedroom daily. These are spaces where you will most likely create little messes and spills from time to time and you will need to quickly clean up after you so they don’t turn to bigger problems before end of the week.

7. Take out Trash: Do this daily, especially kitchen generated garbage so as not to have a pile in your home.

8. Use Door Mats: Door

moneycentralng

mats help to trap soil from outside. Use at your entrances to ensure most of the soil/ sand caught by foot wears are trapped in the door mats.

Remember to also shake the mats outside every few days to release dirt collected over time.

9. Night time Routine – Bathroom: Take a few minutes at night to scrub your toilet bowl, clean the toilet seat, sinks and counter tops with disinfecting wipes and generally take care of spills in and around the bath/toilet area. Doing this regularly, in between extensive weekly washes, keeps your bathroom clean at all times!

10. Night time Routine – Kitchen: Before retiring for the night, clean your gas/ cooker and counter tops, return food and other items back to their allocated spots, sweep out dirt and take out that trash we mentioned earlier. (if you hadn’t already done so). You will absolutely love waking up to a tidy kitchen!

Cleaning As You Go! The secret to keeping a clean house always is in doing simple daily tasks and having a routine that ensures messes and clutters never get the better of you. Get into the habit of cleaning as you go and combine with a schedule, whether it is daily or weekly, so as to sustain the ‘on the go’ momentum. If your home care arrangement includes a house cleaner or nanny, then agree a practical plan and incorporate these tips into his/her responsibilities. Else, work out a convenient program possibly by splitting the tasks between morning and evening periods.

Remember, being consistent is key in whatever arrangement you end up with.

10

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ANALYSIS

Equities marketplace

Monday 4th - 10th April 2022

EQUITIES MARKETPLACE

CORPORATE ACTIONS AND EVENTS CALENDAR March 28, 2022

Corporate actions and events

Upcoming Closure Dates Company

ZENITHBANK TRANSCOHOT CUSTODIAN WAPCO MTNN TRANSCORP ACCESS NASCON SEPLAT DANGCEM DANGSUGAR NESTLE

Dividend Declared (NGN)

2.80 0.07 0.40 1.00 8.57 0.02 0.70 0.40 10.40 20.00 1.00 25.50

Bonus

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Div. Yield

Interim/Final

10.41% 1.32% 5.33% 4.19% 4.20% 1.87% 7.04% 3.05% 1.12% 7.31% 6.25% 1.83%

Declaration Date

2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final

28-Feb-22 28-Feb-22 15-Mar-22 02-Mar-22 28-Jan-22 08-Apr-22 18-Mar-22 28-Feb-22 28-Feb-22 28-Feb-22 02-Mar-22 28-Feb-22

Qualification Date

Closure Date

25-Mar-22 23-Mar-22 25-Mar-22 01-Apr-22 06-Apr-22 08-Apr-22 19-Apr-22 05-May-22 05-May-22 30-May-22 01-Jun-22 27-May-22

28-Mar-22 30-Mar-22 01-Apr-22 04-Apr-22 07-Apr-22 15-Apr-22 20-Apr-22 06-May-22 06-May-22 31-May-22 02-Jun-22 03-Jun-22

Qualification Date

Payment Date

Upcoming Payment Dates Company

TRANSCOHOT ZENITHBANK UBA GTCO CUSTODIAN WAPCO TRANSCORP NB MTNN ACCESS SEPLAT DANGSUGAR NASCON DANGCEM

Dividend Declared (NGN)

0.07 2.80 0.80 2.70 0.40 1.00 0.02 1.20 8.57 0.70 10.40 1.00 0.40 20.00

Bonus

Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

Div. Yield

1.32% 10.41% 10.46% 11.66% 5.33% 4.19% 1.87% 2.70% 4.20% 7.04% 1.12% 6.25% 3.05% 7.31%

Interim/Final

Declaration Date

2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final

28-Feb-22 28-Feb-22 04-Mar-22 07-Mar-22 15-Mar-22 02-Mar-22 08-Apr-22 16-Feb-22 28-Jan-22 18-Mar-22 28-Feb-22 02-Mar-22 28-Feb-22 28-Feb-22

23-Mar-22 25-Mar-22 18-Mar-22 23-Mar-22 25-Mar-22 01-Apr-22 08-Apr-22 09-Mar-22 06-Apr-22 19-Apr-22 05-May-22 01-Jun-22 05-May-22 30-May-22

05-Apr-22 06-Apr-22 07-Apr-22 08-Apr-22 08-Apr-22 21-Apr-22 22-Apr-22 22-Apr-22 28-Apr-22 28-Apr-22 25-May-22 01-Jun-22 06-Jun-22 15-Jun-22

Qualification Date

AGM Date

Upcoming AGM Dates Company

ZENITHBANK UBA GTCO CUSTODIAN WAPCO TRANSCORP NB ACCESS

Dividend Declared (NGN)

2.80 0.80 2.70 0.40 1.00 0.02 1.20 0.70

Corporate Benefits Trigger

Bonus

Nil Nil Nil Nil Nil Nil Nil Nil moneycentral

Div. Yield

10.41% 10.46% 11.66% 5.33% 4.19% 1.87% 2.70% 7.04%

Interim/Final

Declaration Date

2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final 2021Final

28-Feb-22 04-Mar-22 07-Mar-22 15-Mar-22 02-Mar-22 08-Apr-22 16-Feb-22 18-Mar-22

Page|1@moneycentral4

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25-Mar-22 18-Mar-22 23-Mar-22 25-Mar-22 01-Apr-22 08-Apr-22 09-Mar-22 19-Apr-22

06-Apr-22 07-Apr-22 08-Apr-22 08-Apr-22 21-Apr-22 21-Apr-22 22-Apr-22 28-Apr-22

Meristem Research

MoneyCentral www.moneycentral.com.ng

11

Monday 4th - 10th April 2022

MONEYCENTRAL EAST

Governance needs appropriate institutions, says Chioke BALA AUGIE The GroupManagingDirector of Afrinvest, Mr Ike Chioke, has said that creation of appropriate institutions is required to run successful governments.

Chioke said this at the launch of his new book, Akpokuedike – Duty Call in Anambra, where he chronicles the achievements of Governor Willie Obiano of Anambra State.

The launch, which was held on Wednesday, March 9, at the International Conference Centre, Anambra State, coincided with a valedictory ceremony marking the end of Obiano’s tenure after eight years as governor.

According to Chioke, the first thing Obiano did when he took office as governor was to put in place not just physical but institutional infrastructure.

“It goes without saying that you cannot run a government without the appropriate institutions,” he said, adding that the Anambra State Investment Promotion and Protection Agency was the first institution the governor set up.

Through ANSIPPA, a lot of investments came to the state in various sectors: agriculture, tourism and hospitality, and aviation, Chioke disclosed.

On why he wrote the book,

Willie Obiano

he said, “I think I have learned a lot of practical experience on how to translate ideas into action. In my business, we talk about public-private partnership, raising capital and attracting investors. But when you come on ground, we then meet what they call quicksand. You could easily be swallowed by the challenges on the ground for you to implement your vision.

“But working with Obiano, I learnt valuable lessons of how you take an idea, translate it into actionable steps, then execute with diligence until the idea becomes real-

ity. That was what led me to writing the book.”

In his review of the book, professor of Economics and Director, Institute for Development Studies, University of Nigeria Nsukka, Osita Ogbu, submitted that Akpokuedike would serve as a reference material in years to come.

According to Prof Ogbu, Akpokuedike is not just an ordinary biography of Obiano, but also of his leadership in the past eight years.

His words, “I am certain that the author did not realise that the book he has authored about Obiano will be a refer-

ence book on political recruitment, inclusive governance, loyalty and political fidelity, empathic and result-oriented leadership as well as talent hunt for political positions.

“The author has painstakingly painted a balanced portrait of the man. His antecedents, character, professionalism, devotion to family and church, achievements left us with utter admiration of Obiano. It is also a story about love, triumph over adversity and God’s faithfulness to those that wholeheartedly trust in him.”

Chioke, he observed, did not rely on Obiano to tell his story, nor did he sit alone to make up an entertaining story.

“He and a handful of talented researchers tracked down those that knew Chief Obiano before being governor and when he became governor to piece together an account that is diagnosed diverse, logical and authentic.

“This is, therefore, a wellresearched book of 184 pages, 15 chapters and with fully documented bibliography and sources,” he said.

According to Prof Ogbu, the first and most important lesson, and why people should read the book, is that it teaches that political recruitment requires a thorough background check.

Tourism Association decries multiple taxation in South East ... calls on govt to save the sector from collapse The Federation of Tourism Association of Nigeria [FTAN] has lamented the multiple taxation the government of the States in the South East have imposed on the tourism sector, especially in Imo State.

Ogunyemi Odunayo, the Vice President, South-East

of the Federation of Tourism Association of Nigeria (FTAN) said the adverse effects of the imposed multiple taxation in the South-East especially in Imo State should be checked by the government.

“Double taxation is becoming the order of the day, government needs to monitor the activities of revenue

consultants with the hope of streamlining and defining their roles and limitations and considering the manner with which they carry out their activities,” Odunayo said.

Ogunyemi said that businesses in the South-East are seriously bleeding and require government’s intervention, like tax holiday, tax exemp-

tions and tax reductions as these will help the sector to heave a sigh of relief.

Ogunyemi stated that the government should encourage investors in the tourism and hospitality business, but decried a situation where “government agents are busy dishing out Court summons to hospitality businesses for taxes that have either been paid or the ones not tenable.”

POLITICS

POLITICS

Abia deputy gov declares for 2023 guber race

Soludo appoints Anetoh Principal Secretary to the Governor

OBI MADUKA

OBI MADUKA

Governor Chukwuma Soludo has approved the appointment of Barrister Joachin Peters Chika Anetoh, as the Principal Secretary to the Governor.

A release signed by the Secretary to the State Government, Professor Solo Chukwulobelu, says the appointment took effect from first April 2022.

Professor Chukwuma Soludo has in the last two weeks been making key appointments into his government, including

2023: Peter Obi picks N40m PDP Presidential nomination forms OBI MADUKA Former Anambra state governor, Mr Peter Obi has finally joined the league of presidential aspirants vying for the ticket of the Peoples Democratic Party, PDP in next year’s election.

This follows the purchase of the expression of interest and nomination forms for him by a group that identified itself as Like Minds for Peter Obi. Addressing newsmen shortly after obtaining the N40m nomination forms, the spokesman of the group, Ekene Nwakuche said the members hold no affiliation to any political party but decided to rally behind the former governor based on his capacity to provide good governance.

“We don’t belong to any political party. We are just a group of young Nigeria professionals that feels that the way the country is going, the country is not going in the right direction and we need someone, a seasoned technocrat that can steer the affairs of the country in the right direction, and cut down the cost of governance.

“Because we believe that if we cut down the cost of governance, the country would move in the right direction.

We are different individuals in the group- professionals, businessmen, public servants, a different category of con-

tractors and artisans.

“We have members from everywhere in Nigeria and we are fully represented. We want the country to move forward.

We think Peter Obi can steer it forward and we believe in him because we have seen what he did in Anambra when he was a governor. And we have heard him talk; he has the wealth of experience to lead Nigeria to the promised land,” he said.

Nwakuche further added that the major driving force behind the group’s clamour for Obi is the good of the land rather than personal gains.

“We are not in this thing because of any gain. We are doing it because of our children. If we don’t get it right in 2023, I don’t know where we will be. Each and every one of us here knows how the country is and we want a better Nigeria. And I believe that if you are a Nigerian, be it from the north, south, east, west, and you want a better Nigeria, I don’t think there is any other person that you will support than Peter Obi.

POLITICS

COMMERCE

SABY ELEMBA, Owerri

POLITICS

the forwarding of a list of twenty commissioner nominees to the state House of Assembly for screening.

Deputy Governor of Abia State, Sir Ude Oko Chukwu, has declared for the 2023 governorship race. The former Speaker, Abia House of Assembly, who made the declaration Friday in Umuahia, said he had full understanding of the challenges of the state having been around the Government for some time, and was better prepared to tackle them.

Oko Chukwu promised to improve on the gains already recorded by his boss as well as the previous administrations, and to learn from their mistakes.

He said that under his watch, Abia would enjoy rapid infrastructural transforma-

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tion, and economic growth.

The Deputy Governor who is a Chartered Accountant by profession said accountability would be the hallmark of his administration.

He also promised to pay special attention to Aba because of its economic importance to the state and South East zone.

Speaking at the glamorous event, the immediate past Secretary to the State Government, SSG, Dr Eme Okoro, the Deputy Governor was in a better position to fix the state if given the opportunity.

He insisted that it was the turn of Abia North to produce Ikpeazu’s successor in 2023, and asked other zones to respect the Abia Charter of Equity. @moneycentral4

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Appeal Court upholds defection of Gov Umahi, deputy OBI MADUKA The Appeal Court sitting in Enugu, Friday affirmed the ruling of the Ebonyi State High Court, which declared that Governor David Nweze Umahi and his Deputy, Dr. Kelechi Igwe, did not offend any provision of the constitution or the Electoral Act by defecting from the Peoples Democratic Party, PDP to the All Progressives Congress, APC, in the State.

The Court held that there was no consequence under the law against the defection of the holder of the office of the President, Vice President, Governor or Deputy Governor, to another political party from the party that sponsored the election that brought him or her to office.

The Plaintiffs in the matter are the candidate of the All Progressives Congress, APC, Ebonyi State, in the 2019 Governorship election, Senator Sonni Ogbuoji and his Deputy, Chief Justin Ogbodo Mbam.

Recall that on Tuesday, February 28, 2022, the Ebonyi State High Court sitting in Abakaliki, struck out the same suit and awarded N500, 000 as damages against the plaintiff.

The Appellate Court in a unanimous judgement deliv-

ered by a three-man Panel led

by Justice J O K Oyowole, held that the defection of a political office holder may appear immoral, but it was not the duty of the Court to embark on an investigation or probe into the provisions of the laws, warning that judicial activism must not be turned into judicial rascality.

The Court further explained that there was no provision in sections 180, 188 or 189 of the 1999 constitution as amended, that empowered the Court to remove either a sitting Governor or the Deputy from office.

According to the learned Justices, the defection of an office holder is not novel to Nigeria’s judicial jurisprudence.

The Court, however, dismissed the appeal and awarded two hundred thousand (#200,000) naira against the appellants.

Reacting to the judgement, Counsel to the Defendants, Barrister Roy O. U Nweze applauded the judgement, saying, it will be a reference point all over the country.

Also, the Appellant’s Counsel, Ogbonnaya Okorie appreciated the industry of the court in delivering the judgement, adding that he would study the judgement and advise his clients.

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Monday 4th - 10th April 2022

MONEYCENTRAL NORTH

2023: Isa Ashiru joins guber race in Kaduna ABDULWAHEED OLAYINKA ADUBI, Kaduna The governorship candidate of the Peoples Democratic Party (PDP) in Kaduna State in 2019, Hon. Isa Ashiru, has again declared interest for the Kaduna guber race in 2023.

While declaring his intention at the PDP party secretariat, he said, he would leave nothing to chance and would follow due processes proactively to succeed.

He also said that he won the 2019 governorship election, but was rigged out.

He further explained that his journey into politics is to serve humanity and provide the dividends of democracy to the people.

Ashiru was a member of KadunaHouseofAssemblyfortwo consecutivetermsandmember of the National Assembly.

While speaking he maintained that: “In politics, when you lose the first time, it is not a loss. This game is not about me but about my people.

“I have a vision which I believe, if given the opportunity, I will transform the lives of my people for the better.

“So, I am not in politics to serve myself but to serve my people. Things have changed.

I feel I have something better to offer to improve the economic and social condition of our people that is why I am going to run again.”

Speaking further, the politician said: “My desire is to

ensure that all parts of the state feel the impact of governance as well as to provide the

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POLITICS

Ayu, Ortom, Orbunde eulogises late House speaker Chaha GEORGE KAJO, Makurdi National chairman of the Peoples Democratic Party, Dr Iyorchia Ayu, Benue State governor, Samuel Ortom and the PDP governorship aspirant in the state, Pastor Terwase Orbunde have eulogized the sterling political qualities the former Speaker of the House of Representatives, Benjamin Chaha has left behind.

In their separate funeral oration at his burial in Zaki Biam, Ukum local government area of Benue state last Thursday, Ayu described the second republic politician as a touch bearer that open doors for national policies and Benue as the first Tiv man to be elected as speaker of the House of Representatives.

He said many who mate Chaha in his healthy days were inspired by his political ideas and rose to the top and assured Benue people that if PDP wins the presidential election next year, they will not be left out in the scheme of things.

The PDP national chairman noted that, there has been so much blood letting with airports and railways have been attacked and no safe place for the citizens in the country under the APC administration; assuring that PDP will do everything possible to end the carnage once it takes over national leadership.

Governor Samuel Ortom on his part, advised family members of the deceased not to destroy the values their father instituted by remaining united all the time.

He called on people of the state to rise in self defence to compliment the efforts of security operatives to secure their lives especially in the wake of renewed attacks on some communities by suspected Fulani herdsmen.

In his tribute, the Peoples Democratic Party 2023 Governorship aspirant in Benue State, Pastor Terwase Orbunde, appealed to Chaha’s family to take solace in his evergreen memories and positive legacies he left behind.

POLITICS

2023: Nasarawa youths beg Senator Adokwe to rescue the state NATHANIEL GBAORON, Lafia

Ahead of the 2023 general elections, Youth in Nasarawa state have submitted their findings with a call on Senator Sulaiman Adokwe to contest for the governorship in Nasarawa state in order to win and clear the current mess in Nasarawa state.

Presenting the report to senator Adokwe, the leader

needed security in the state and run an all- inclusive government with the fear of God.”

of the Youth Frontiers, comrade Elisha Ebuga Yohanna urged him to access the

Ardo dumps PDP for SDP claims political injustice OJOMA YUSUF, Yola The new chieftain of the Social Democratic Party (SDP) in Adamawa State, Dr. Umar Ardo has disclosed he has defected to the SDP. Ardo described PDP and APC as Siamese twins saying that he refused to defect to the opposition All Progressives Congress (APC) because of its penchant for lawlessness and disregard for the rule of law just like the PDP. While addressing the press in Yola, Ardo flanked by the national executives of SDP said his entry into the party will herald a new dawn as he called on the electorates to move in their droves to the rescue train.

Ardo said the PDP was self serving, pathologically anti democratic and noted that he jettisoned the party because it has shown propensity never to recant its evil ways that led to its untimely death.

“My departure from PDP to SDP is a painful but necessary action. It is painful because I was a founding supporter of the PDP in 1998

and committed myself to ensuring that the party gained acceptance of the majority of our people.

“It has a progressive, robust and flexible constitution ideal to the growth of a developing society like ours in Adamawa State and Nigeria.

Its manifesto is in tandem with the needs of our communities, with durable rules, regulations and guidelines that if strictly followed would no doubt build us into a developed, strong and united people. These appealed to me as progressive, and so had strong appeal to my personal principles.

“But to my greatest consternation, extremely very few individuals and groups who founded the party were not willing to play the game according to rules.

report for necessary action.

He said some PDP loyalists acknowledge the contributions of senator Adokwe believing that he is the most suitable for the Nasarawa top job hence the need to give him the opportunity to serve the state.

Comrade Ebuga mentioned some qualities of Senator Adokwe to include loyalty, steadfastness and respect for the party.

On his part, former PDP secretary Nasarawa state, Alhaji Adamu Oyaki and Patricia Solomon Nghargbu, appreciated the volunteers Youth Frontiers

further carrying out consultations in the interest of the party.

Receiving the report, Senator Adokwe commended the volunteers Youth Frontiers for seeing the capacity in him to clear the mess in Nasarawa state and promised to study the report and make his position known as soon as possible.

The former lawmaker enjoined the party leadership to provide a level playing ground for aspirants before, during and after the PDP primaries in Nasarawa state.

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@moneycentral4

POLITICS

Guber aspirant praises Benue PDP leadership, co - aspirants over understanding GEORGE KAJO, Makurdi One of the frontline Peoples Democratic Party 2023 Governorship aspirants in Benue State, Pastor Terwase Orbunde, has expressed appreciation to the leadership of the party for their efforts at providing direction on the governorship and other elective candidates.

He commended the leader of the party, Governor Samuel Ortom, State Working Committee members led by Sir John Ngbede, Senators Gabriel Suswam, Orker Jev and Abba Moro, National Assembly Caucus, the three zonal caucuses, local government party chairmen, their caucus members and other stakeholders, as well as G-14 and G-9 for their vari-

ous roles in that regard.

The former Chief of Staff to the Governor, in a statement, on Wednesday, stressed that major stakeholders of the party in the Benue South Senatorial District, Kwande, Ushongo, Vandeikya, and Konshisha local government areas deserve appreciation for the painstaking ranking of governorship aspirants in their areas for easier management of the process.

He congratulated his fellow aspirants for participating in the pruning exercise which threw up a few among them as coming first among equals in their Districtand respective localgovernmentareas,maintainingthat the system ultimately required that only one person emerge as Governor at the end of the day.

CSR

AUDA, NEPAD to feed over 6,000 almagiries during this years Ramadan in Nasarawa NATHANIEL GBAORON, Lafia Non Governmental Organization, African Union Development Agency (AUDA in partnership with New Partnership for Africa’s Development (NEPAD.) is to feed 6,000 Almajiri Children in Nasarawa during this year’s Ramadan period.

Coordinator of AUDANEPAD. and Special Adviser to Governor Abdullahi Sule on NGOs and Development partners, Hajiya Munira Abdullahi disclosed this in Lafia during an exclusive interview with MoneyCentral correspondent.

Hajiya Munira Abdullahi said the Organization last year undertook the feeding of over 1,000 Almajiri Children in the state adding that the number of Almagirieshadtobeincreasedas aresultofincreaseinthenumber of the children in the state.

“We are carrying out a programme called the almajiri feedingprogramanditisdoneduring theRamadanperiod.Wecarried this out successfully Last year we were able to feed about a thousandalmajirichildrenwithina27 dayperiodandthisyear,wehope to feed about six thousand, we may or may not meet our target or surpass our target but we are callingonphilanthropisttomake donation in food items for us to beabletofeedthischildreninthe Ramadanperiod,”HajiyaMurina Abdullahi declared.

INDUSTRY

Kano approves bill to establish Minerals Development Agency ABDULWAHEED OLAYINKA ADUBI, Kaduna Kano state Executive Council has approved a bill seeking the establishment of the state Mineral development Agency (KASSOMIDA) to allow the state to effectively supervise the development of the solid mineral sector for economic development.

The state commissioner for information, Malam Muhammad Garba announced this while briefing newsmen on the outcome of the weekly council meeting held at Aminu Kano House, Asokoro, Abuja.

He said the council has directed that the approved bill be transmitted to the state House of Assembly for passage into law.

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Malam Garba further explained that the creation of the agency would facilitate access to grants and development funds from the federal government which include but is not limited to the Ecological Funds, Solid Minerals Funds.

The commissioner pointed out that the development would also ensure environmental management and protection by tackling illegal operations as the few employees of the federal government cannot cover the vast areas of land where such illegal activities are being conducted.

He also revealed that the council has approved the disarticulation of 1, 571 junior secondary schools (JSS) to the State Universal basic Education Board (SUBEB).

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Monday 4th - 10th April 2022

MONEYCENTRAL WEST

Makinde donates N500m for construction of new Air Force base in Ibadan AKIN AKINBOBOLA

Governor of Oyo State, ‘Seyi Makinde, on Thursday, promised to donate the sum of N500m for the construction of a base for the Nigerian Air Force, which would be located at Ajia, Ibadan.

The governor made the pledge while receiving the Chief of Air Staff of the Nigerian Air Force, Air Marshal Isiaka Oladayo Amao, DFS, during a courtesy visit to his office at Secretariat, Agodi, Ibadan.

He added that his government will continue to

support the officers and men of the NAF. Makinde, shortly after, proceeded to the venue

where the Air Force Base will be located to perform the official groundbreaking ceremony in the com-

pany of other top government functionaries.

The governor expressed hope that the Base will become one of the best Air Force bases in the country, assuring that his administration will do everything possible to achieve such a feat.

“We want one of the best Air Force bases in the country to be located here in Ibadan, and our government will do everything possible to achieve that.

On behalf of the government of Oyo State, I pledge that we, as a state, will contribute N500m,” Makinde stated.

RELIGION

Fayemi greets Muslims at Ramdan SEUN PETERS

Ekiti State Governor, Dr Kayode Fayemi, has congratulated Muslims in the State and in Nigeria on the commencement of the Ramadan fasting period.

Governor Fayemi, in a statement by his Chief Press Secretary, Mr Olayinka Oyebode, described Ramadan as “the glory of all months in the Islamic calendar”, adding that Ramadan fast is one of the five pillars of Islam that Muslims must strictly adhere to in line with the injunction of the Almighty Allah.

The Governor noted that Ramadan offers an opportunity to draw closer to Allah and deepen relationships with him. He therefore urged Muslims to use the period to pray for peace to reign in all the troubled spots in the country and in nations of the world.

He also urged them to use the Ramadan season to pray for peace and prosperity in Ekiti State, especially the forthcoming

governorship election in the state. He said through prayer and cooperation of the people, the state would witness a peaceful election and smooth transition of power to the eventual winner.

Dr Fayemi prayed that the holy month will usher in abundant grace and blessings for the faithful.

“We all must be grateful to Allah for being alive to witness another Ramadan season. I urge my Muslim brothers and sisters to use the opportunity of the Ramadan period to pray and seek the face of Allah for peace, progress and prosperity of our dear country.

“We should always seek divine intervention for our nation and the Ramadan season provides such a unique opportunity to collectively seek the face of Allah through prayer. May Allah accept our prayers and may the holy month usher in abundant blessings for the faithful and restore peace and prosperity to our dear country,” he said.

Ekiti moves to rid streets of miscreants, mentally ill persons AKIN AKINBOBOLA

L-R: Vice Chancellor, Ekiti State University, Ado-Ekiti, Prof Edward Olanipekun; All Progressives Congress (APC) Governorship Candidate/ EKSU Alumnus, Mr Biodun Oyebanji and Chairman, Governing Council, EKSU, Prof Tale Omole; during the conferment of the Distinguished Ambassador Award on Oyebanji at the 40 years Award/Dinner organised by the Alumni Association in Ado-Ekiti.

INFRASTRUCTURE

MINING

Osun threatens clampdown Red Rail Project : Lagos to divert traffic at Ogunmokun in Mushin for 3 months on illegal miners, pollution AKIN AKINBOBOLA diverted to Lagos/Abeokuta SEUN PETERS

THE Osun State Government has threatened to launch a war on illegal mining in the state.

The state stated that illegal miners are destroying its environment and polluting the Osun River.

According to it, it is ready to ensure that miners resisting guidance and not following its approved standards for mining get sanctioned.

This was disclosed in a statement by the Commissioner for Information and Civic Orientation, Funke Egbemode.

According to her, the government is warning natives from leasing their farmlands to illegal miners or face the law.

She said, “Osun State Government is worried and

deeply concerned about the flagrant abuse of its environment by illegal miners who are daily degrading and polluting the Osun River.

“In spite of efforts to curb the excesses of these fly-bynight businessmen, they have consistently resisted guidance and refused to follow approved standards for mining in Osun.

“It has therefore become imperative to serve them the last warning here and now.

The state will no longer fold its hands while these miners (both legal and illegal) throw caution to the winds and ruin one of our heritage sites.

“Osun River is not just a geographical landmark. It is one of the few accredited UNESCO sites in Nigeria. It is our heritage; one we will do everything to protect and preserve.

The Lagos State Government will be diverting traffic from Kayode/Ogunmokun Streets in Mushin on Saturday, 2nd April, 2022, until 20th July, 2022, in continuation of the first phase of the Lagos Rail Mass Transit Red Line Project.

A statement issued by the Commissioner for Transportation, Dr. Frederic Oladeinde, explained that the piling works along the axis will take a stretch of four months to allow the contractor to achieve the desired results for the rail line.

Oladeinde, therefore, stated that motorists on Kayode Street will be diverted through Jibowu to connect Lagos-Abeokuta Expressway to access Ogunmokun Street, while those on Ogunmokun Street will be

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Expressway, Ilupeju Bypass, to access Ikorodu Road for a continuation of their journey.

The Commissioner gave an assurance that the Lagos State Traffic Management Authority will be deployed along the affected routes to manage traffic flow and minimise inconvenience, appealing to road users to make use of suggested alternative routes during the construction period and obey traffic signals.

Oladeinde also enjoined residents and road users in the State, especially motorists plying the corridors, to support the execution of the project aimed at achieving a seamless multi-modal transport system that will meet transportation needs of the larger population. @moneycentral4

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Ekiti State Commissioner for Women Affairs and Social Development, Maryam Ogunlade, says no fewer than 11 mentally challenged persons and miscreants have been removed from the streets of Ado and Ikere Ekiti for rehabilitation by the state government.

Ogunlade said that the exercise, which would be carried out across the state, was borne out of the commitment of the Dr Kayode Fayemi administration to the welfare of all categories of people in the state.

The commissioner, in a statement titled, ‘Ekiti rounds up mentally challenged for rehabilitation’, added, “The move is also targeted at boosting security of lives and property of the people. Investigations have shown that kidnappers and miscreants sometimes disguise themselves as beggars and lunatics to carry out their nefarious activities.

According to her, categories of persons targeted during the exercise included street beggars, destitute persons, miscreants.

She explained that the exercise would be carried out across the state.

“The exercise is also aimed at providing proper care as well as psychosocial support for genuine beggars, miscreants and mentally challenged persons. They will be reintegrated into the society and their respective families as soon as they are fit enough to do so,” the commissioner said.

Ogunlade said that the exercise was carried out according to global best practices and in collaboration with law enforcement agencies to avoid undue interruption and resistance.

Also, the Executive Secretary, Office of Disability Affairs, Mrs Olabisi Fatoba, disclosed that adequate arrangements had been made for the care of those picked.

He added that they would be allowed to join their families and society when considered fully rehabilitated.

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NFF says no ban on Moshood Abiola Stadium

been stolen. We initially thought this was an April Fool prank but it is alarming that some media outlets are taking it seriously. Nothing of such happened. The VAR equipment remains intact and has been returned to the FIFA office in Zurich, Switzerland by Sebastian Runge,

FIFA’s Head of Technology.”

Sanusi added: “The NFF understands that Nigerians in their generality were sorely disappointed by the result of the match, which came short of having the Super Eagles at the FIFA World Cup. It is a painful situation for

everyone, including ourselves at the Federation.

However, we are appealing that the propensity for half-truths and outright falsehood be discouraged.

We believe that the present squad of Super Eagles is still capable of achieving great things.”

2022 FIFA World Cup Draw: X-raying African team chances The 2022 FIFA World Cup draw was held in Doha, Qatar on Friday, with African teams finding themselves in a tricky group and Ghana again paired with Uruguay in Group H. Of the 32 teams involved, only 29 have been confirmed, as two intercontinental playoff matches will take place in June, while in Europe one of Wales, Scotland or Ukraine will book their place at the tournament.

The 2022 FIFA World Cup will be the 22nd edition of the competition, the quadrennial international men’s football championship contested by the national teams of the member associations of FIFA is scheduled to take place in Qatar from November 21 to December 18, 2022.

Moneycentral takes a critical look at the five African teams participating in the 2022 FIFA World Cup in Qatar and their chances of qualifying for the next round.

A soft draw for Senegal African Champions have been in fine form after they won the 2021 Africa Cup of Nations (AFCON) in January and football pundits have tipped Senegal to qualify for the next round.

The African champions will play Netherlands, Ecuador and host Qatar in Group A and will be hoping to replicate their 2002 World Cup performance.

Ghana seek Uruguay’s revenge This group provides the Black Stars of Ghana to re-

venge for their loss 12 years ago after being drawn with Uruguay in Group H of the 2022 FIFA World Cup. The Black Stars are also paired with Portugal and South Korea, we are likely to see a repeat of the 2010 World Cup quarter-final.

Ghana were seconds away from reaching the 2010 semifinals, but Luis Suarez handled a shot on the line at the end of extra time and was sent off, but Asamoah Gyan missed his penalty and Uruguay progressed to the semifinal.

“We believe that it will be revenge time,” Ghana FA president Kurt Okraku told BBC Sport Africa.

“We thought we had won that particular game but for that save from Suarez. It is very interesting for us to pitch against them again, obviously with fond memories.”

Tunisia in Group of death The Carthage Eagles of

Monday 4th - 10th April 2022

SPORTSCENTRAL

Stories by Charles Ifeanyi Tel: 08029772561

The Nigeria Football Federation (NFF) has denied streams of incorrect reports being peddled in sections of the media, in connection with Tuesday’s FIFA World Cup playoff match between Nigeria and Ghana at the Moshood Abiola National Stadium, Abuja.

NFF General Secretary, Dr Mohammed Sanusi said on Friday: “We are alarmed at the influx of incorrect reports, otherwise known as fake news, mostly in the social media. There is no truth to the reports that the Moshood Abiola National Stadium, Abuja has been banned for any length of time by FIFA. It is a concoction by some persons with fertile imagination. The NFF has not received any such communication from either FIFA or CAF. “There has also been an outlandish report that the Video Assistant Referee (VAR) equipment that was installed for the match had

Tunisia will face tougher opponents in Group D as they will play title holders, France, Denmark and will also face

the winner of an international play-off - which could be either Peru, Australia or the United Arab Emirates.

Tricky one for Morocco The Atlas Lions of Morocco will open up against 2018 runners-up Croatia in Group F and have also been drawn with Belgium and Canada, who have qualified for the first time since 1986.

Tough draw for Cameroon The Indomitable Lions of Cameroon are in Group G with Brazil who they have met twice, losing 3-0 in 1994 and 4-1 in 2014.

Cameroon have qualified for a record eighth World Cup finals, and have been drawn with Serbia and Switzerland.

Organizers promise exciting football as HiFL 2022 season kicks off PACE Sports and Entertainment Marketing Limited, organizers of the Higher Institutions Football League (HiFL) said the stage is set for the 2022 HiFL season that will see 60 teams across different institutions in Nigeria contest for honours. The 5th edition of the league kicks off in April with team registration while the qualifiers begin in May. According to Pace Sports and Entertainment Marketing, this year’s edition promises to be “more than a game” with other exciting activities which have been concluded for this 5th edition of the games.

Speaking at a press conference to unveil programs for the 2022 edition, Director, PACE Sports and Entertainment Marketing Limited, Sola Fijabi hinted that “the 2022 season promises so much excitement. We will have more schools register for the league this year as we also hope to expand the offerings. We want our stakeholders to feel the vibes that HiFL has created since its inception. We appreciate the success recorded so far and we hope for more going forward.

Our goal is to consistently build on the achievements of the initiative to make it a reference point for collegiate sports in Africa.”

Chairman of the Higher Institution Football League (HiFL) Dr Onyekachi Onubogu said preparations are in top gear to ensure that lovers of football in the country enjoy the best of collegiate football this season. Building on the successes recorded in previous seasons, Onubogu

said the projection is to make HiFL the biggest tertiary institutions competition in Africa with the support of all relevant stakeholders.

“We sincerely appreciate our sponsors, Stanbic IBTC and BOLD Drinks for their esteemed support and commitment to developing the Nigerian youths and collegiate sports” Onubogu stated.

Head, Brand and Marketing at Stanbic IBTC, Bridget Oyefeso-Odusami, in her remark said “this is the fourth year of our partnership with HiFL. We have committed to a partnership for five years after which it will be evaluated.

It has been interesting and we are still committed to the course to which we said we will. HiFL has done a great job so far. We realise that some of the teams that participated in the last edition of HiFL won most of the medals at this year’s NUGA games. On behalf of the Chief Executive for the Group and the Bank, we extend our goodwill and ask that the players should continue putting in their hard work. We will continue to do our bit in supporting youth development in Nigeria”.

President of the Nigerian University Games Association (NUGA), Prof. Stephen Hamafyelto praised the organisers and assured all stakeholders that the association is committed to ensuring that the 2022 HiFL season is a success. According to the season’s schedule, team registration will begin in April while the qualifying rounds start in May through to the Super Four Finals scheduled to hold in September.

Philip Chilaka, Group Innovations Manager, JOTNA Nigeria Limited; Prof. Stephen Hamafyelto, President, Nigerian University Games Association (NUGA); Dr Onyekachi Onubogu, Chairman, Higher Institution Football League (HiFL), and Bridget Oyefeso-Odusami, Head, Brand and Marketing at Stanbic IBT at HiFL 2022 International Press Conference held in Lagos.

Osimhen, Oshoala win big at Nigeria Pitch Awards Super Eagles forward, Victor Osimhen, emerged the biggest winner of the 8th edition of the Nigeria Pitch Awards. The Napoli FC’s goal poacher, who was confirmed Player of the Month for March in the Serie A, emerged the Striker of the Year and the King of the Pitch making him Nigeria’s Most Valuable Player for 2021.

Super Falcons and FC Barcelona Femení goal scorer, Asisat Oshoala continued her dominance of the women’s award category as she was named the Queen of the Pitch for the fourth time.

The 8th edition of the Nigeria Pitch Awards Ceremomoneycentral

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ny which started three hours after the World Cup Qualifier encounter between Nigeria and Ghana lasted until the early hours of the 30th March 2022. The gathering observed a minute’s silence in honour of those who lost their lives during the attack on the ill-fated Kaduna bound train on Monday 28.

Welcoming guests to the Award, Shina Philips, President of the Nigeria @moneycentral4

Pitch Awards, encouraged Nigerians to put the disappointment of the inability of the country to qualify for the 2022 FIFA World Cup Qualifier in Qatar behind them and look forward to a better future with the Super Eagles.

“Nigerians love football and always expect to win in every game, Philips said.

Continuing, he noted, “The reality however is that every football match can end in a win, a draw or a loss. We will move on and become stronger in future. We have been champions before and will be champions again in future.”

Philips stated that organizers were not oblivious

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of the mood of the nation.

“We understand that many Nigerians are disappointed but we wish to remind Nigerians that the nation has won many football matches and competitions and we ought to continue to encourage the players by rewarding them for their commitment, industry and display of talent in 2021,” Philips concluded.

In the Goalkeeper of the year category, Maduka Emilio Okoye emerged the winner while Super Eagles Captain, William TroostEkong beat fellow compatriots, Olisa Ndah and Lean Balogun to win the Defender of the year award for the third time.

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15

Monday 4th - 10th April 2022

MARKET EAR

Access Holdings increases equity stake in E-tranzact to 23.8% in payments push PATRICK ATUANYA

Access Holdings (HoldCo) Plc Nigeria’s largest bank by assets has increased its equity stake in E-tranzact to 23.8 percent in a bid to play more aggressively in the payments space.

E-tranzact (ETRAN), a fully integrated fintech platform in Africa was founded in 2003. It is one of the leading independent players in Lagos, Nigeria with a diversified license and product capabilities, including payment processing and banking and payment services across Africa.

The company has enjoyed continuous and consistent growth in top line revenue and subscriber base and activity over the past 5 years and is positioned for continuous growth post Covid.

Nigerian banks have been trying to play more

actively in the payments space since the success of firms like flutterwave.

Access Holdings holds an equity interest of 1.896 billion ordinary shares of 50k each in E-tranzact International Plc as at 31 December 2021, representing 23.80% equity participation in the company.

The group’s effective ownership in ETRAN increased from 5.46% in 2020 to 23.80% in 2021 as the bank acquired more shares from the company.

cant participation in the company’s operating and financial policies.

The existing investment the Bank had in Etranzact was initially recognized in the books under equity instruments measured at Fair value through profit or loss.

At the point of increasing the stakes of the Bank in Etranzact by means of the Right issue, the existing shares were reclassified to investment in associates at their fair value.

MTN Nigeria’s unclaimed dividend hits N1.65bn BALA AUGIE

MTN Nigeria Plc, the largest telecommunication firm in Africa’s most populous nation has a total unclaimed dividend outstanding of N1.65 billion as at December 2020, according to its audited financial statement.

That is 21.36 percent higher than 2020’s N1.36 billion.

In line with Security and Exchange Commission (SEC) guidelines, Coronation Registrars Limited returned to the telco giant the sum of N688 million unclaimed dividend as at 31 December 2021.

The board of directors of the company approved and paid a final dividend of N133.0 billion as at December 2020.

MTN Nigeria has a dividend yield of 6.53 percent while price to earnings

ratio stood at 10.73 times.

The value of unclaimed dividends in the Capital Market has risen to N170 billion, according to recent data by the SEC. “There are people who have bought shares under false names before. That is what we call the multisubscription problem. The thing is yes there is a problem with the process and also there is a problem with us as a people,” said Lamido Yuguda, the Director General of SEC. “If you are buying securities using your own wealth, why would you use another person’s name? Why would you use a name that may not be traceable to you? And most of these things really became an issue after the introduction of BVN, because BVN is tied only to one name.”

Banks groan under excessive AMCON...

MARKETS

Continued from page 5

High dividend yield, return on equity makes UBA stock investor’s favorite BALA AUGIE

United Bank for Africa (UBA) has got all that it takes to magnify investors’ earnings as the pan African lender’s stock is one of the most attractive among peers.

Interestingly, UBA pays a steady dividend that guarantees shareholders steady income and its strong capital position, consistent earnings growth coupled with good asset quality means it can weather economic downturn with reduced volatility.

It is important to note that the lender pays out higher dividends each year relative to its stock price compared to peer rivals, overtaking Zenith Bank in this regard.

Its dividend yield stood at 13.07 percent, and that compares with Zenith Bank, 11.52 percent; FBN Holdings Plc, 3.80 percent; Access Bank, 10.05 percent, and Guaranty Trust Holdings, 12.96 percent.

Also, UBA stock has the lowest Price to earnings ratio at 1.96 times, which means it is the cheapest stock among peers.

Zenith Bank has P/E Ratio of 3.34 times; FBN Holdings, 5.99 times, Guaranty Trust Holdings, 3.76 times, and 2.39 times.

The market downturn elicited by foreign investors’ apathy towards Nigeria’s eq-

The proportion of the Bank’s interest is the same as the proportion of voting rights.

As at 31st December, the fair value of the Bank’s investment in E-tranzact was N3.16 billion The Group exercises significant influence in E-tranzact International Limited by virtue of its more than 20% shareholding in the entity and the representation of one director on the board of the company and signifi-

MARKETS

uity due to the policy makers lack of transformation policies and capital controls have sent price earnings ratios down along with prices for stocks, indicating that good values for investors may be readily available on the market.

Additionally, the operating environment has been unfavorable as punitive regulations by the central bank such as the high cash reserve ratio and the barring of individuals and domestic firms from its Open Market Operations (OMO) are squeezing net interest margins and return on average equity.

Despite the tough and unpredictable macroeconomic environment, UBA’s profit before tax (PBT) grew by 20.21 percent to N153.07 billion in December 2021 from N127.57 billion the previous year.

Interest income on loans and advances increased by 12.12 percent to N473.90 billion from 422.65 billion the previous year.

response to the Asian financial crisis.

Danaharta was a limited liability company owned by the central bank with the objective of maximizing NPL recovery values and purchasing unmanageable NPLs as a form of capital injection.

Banks sold NPLs to Danaharta if their gross NPL ratio exceeded 10%, with the residual written down and restructured.

Danaharta appointed special administrators, foreclosed on property collateral, or took legal action for nonviable borrowers.

Over its lifetime, Danaharta’s portfolio totaled RM52.42 billion ($13.8 billion) in face value of NPLs, and it recovered RM30.35 billion (58 percent), and recognized a net loss of RM1.14 billion on RM8.94 billion total invested.

Danaharta ceased operations in December 2005, and the remaining RM2.88 billion in residual assets were transferred to a subsidiary of the Ministry of Finance.

Analysts say it is unfair for lenders to be mandated to pay for the mistakes of beleaguered peer rivals in perpetuity.

An industry expert who spoke to MoneyCentral on

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the condition of anonymity says market participants wonder what the corporation has been doing with billions of Naira it collects from financial institutions.

Of course, the compulsory levy has added to lenders’ woes as it is the second largest expense item in their books, and that is on top of inflationary pressures, exchange rate movement and energy costs ballooning the cost to income ratio.

“We would love to stop it. However, the ten-year period is going to be extended. AMCON charges will continue to grow,” said Segun Agbaje, chief executive officer Guaranty Trust Holding Company (GTCO) Plc. In the last six years, Zenith Bank has paid N166.23 billion in regulatory charges. Its AMCON charge increased by 22.56 percent to N37.92 billion in December 2021 from N30.94 billion the previous year. The levy makes up 13 percent of total operating expenses of N289.53 billion.

Between 2016-2021, Guaranty Trust Holding Company (GTCO) incurred N95.33 billion in AMCON charge, while the levy was up 27.20 percent to N21.88 billion as at December 2021. The regulatory induced cost is 13.84% @moneycentral4

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of total operating expenses of N162.26 billion.

Between 2016-2021, Access Bank incurred N144.81 billion in regulatory induced costs. And it saw charges rise by 17.13 percent to N41.50 billion in December 2021 from N35.43 billion the previous year. The charge is 11.85 percent to total operating expenses of N371.25 billion.

In the last six years, United Bank for Africa (UBA) has incurred N110.79 billion in AMCON charge and it saw the levy increase by 24.81 percent to N27.97 billion in December 2021 from N22.41 billion the previous year.

The regulatory cost is 10.09 percent of N278.95 billion.

“You begin to wonder if we still need NDIC because this is why banks pay a premium to NDIC every year., which is another regulatory cost for the same purpose. Depending on the bank’s risk assessment

rating, the NDIC premium can be as high as 0.55 percent,” said a second industry analyst who doesn’t want his name mentioned.

Managing Director/ Chief Executive, Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, also agrees that debt recovery under the AMCON scheme could not continue forever.

“Going forward, we will want to focus on how we close those transactions so that everybody can rest,” said Kuru. “There must be an end. If there is an account that you have been pursuing in the last 20 years, I think you should be able to draw a line. Going forward, we will want to focus on how we close those transactions.”

So far, AMCON has made over N1 trillion recoveries and resolved more than 5,000 relationship issues as well as salvaging several businesses from collapse.

www.moneycentral.com.ng

Monday 4th - 10th April 2022

THE BOTTOM LINE

Nigeria insurers capacity to underwrite new policies decreasing The capacity of insurers in Africa’s largest economy to underwrite new policies is decreasing because while premiums are increasing there is not a corresponding rise in policy surplus or shareholders’ funds.

Interestingly, the premium to surplus ratio for most of them is high, which significantly undermines their ability to undertake big ticket transactions.

Premium to surplus ratio is net premiums written divided by policyholder surplus.

Insurers collectively grew gross premium income (GPI) by 11.40 percent to N358,53 billion in December 2021 from N321.82 billion as at December 2020, according to data compiled by MoneyCentral.

However, they saw their combined policyholder surplus or shareholders’ fund decrease 0.498 percent to N303.51 billion as at December 2021, according to data gathered by MoneyCentral.

The greater the policyholder surplus, the greater assets are compared to liabilities. In insurance parlance, liabilities are the benefits that the insurer owes its policyholders.

The insurer can increase the gap between assets and liabilities by effectively managing the risks associated with underwriting new policies, by reducing losses from claims, and by investing its premiums to achieve a return while maintaining liquidity.

It is important to note that premiums are the lifeblood of an insurance company because the more they are paid the more sustainable a company.

Royal Exchange’s premium to surplus ratio rose to 442 percent in December 2021 from 200 percent the previous year. The insurer’s shareholders’ fund dipped 92 per-

cent to N603.13 million due to accumulated losses as zero income on Life Business continues to undermine premium income.

AXA Mansard’s gross premium income rose by 18.31 percent, but shareholders’ funds fell by 10.13 percent.

Mutual Benefit Assurance’s gross premium income was up 21.59 percent to N24.77 billion as at December 2021, however, policyholders’ surplus dipped by 15.57 percent to N23.35 billion.

Linkage Assurance’s gross premium income spiked by 24.74 percent but its shareholders’ fund reduced by 11.48 percent.

AIICO Insurance’s gross premium income was up 14.07 percent, however, the shareholders’ fund rose by 9.12 percent.

African Alliance and Niger Insurance are technically insolvent as they have negative shareholders funds of N1.01 billion and N6.02 billion respectively.

Analysts say most insurers do not have enough strong capital to undertake Aviation, Marine, and Oil and Gas risk needed to magnify their earnings.

Allen Onyema, chairman Air Peace, said all the insurance companies in Nigeria put together cannot even insure one aircraft

Global insurers could be exposed to $10bn claims due to stranded planes in Russia -Fitch Global insurers could be exposed to up to $10 billion in claims relating to stranded planes in Russia due to war in Eastern Europe and the reinsures may be squeezed more, according to analysts at Fitch.

Artemis had reported that more than 500 planes that are financed or owned by non-Russian lessors are stranded in Russia due to sanctions imposed by numerous western countries in response to Russia’s invasion of Ukraine.

Fitch notes that it will remain hard to quantify the ultimate claims cost as outcomes are likely to be subject to legal disputes over the cover that applies, particularly over whether certain coverage automatically expired

once sanctions were imposed, or was cancelled in time by the carrier before the actual claims event – the expropriation of planes.

Industry experts estimate the total insured residual value of the grounded aircraft at USD13 billion.

There have been slew of sanctions by the United States and Europe on Russia over its invasion of Ukraine, but the war in East Europe is stoking inflation and ballooning energy prices.

This is coming at a time the world is recovering from the coronavirus pandemic that saw insurers book losses and economies paralyzed.

Lloyd’s of London, the world’s leading insurance market provid-

ing specialist insurance services to businesses in over 200 countries and territories, said it is working with the UK government to implement sanctions imposed over the war in Ukraine as fast as possible, including cancelling Russian firms’ insurance cover.

Announcing a swing back to an annual profit as it recovers from the pandemic, the insurer warned that the war will present a “major claim” for the insurance market this year, but said it was “manageable”.

The possible loss of $10 billion adds to another layer of concern as insurers were reeling from catastrophic events such as Australia’s flooding, California wildfire, and earthquakes.

He added that his company goes abroad to insure aircrafts because

firms are unable to underwrite such risks.

“You have not talked about insurance that is very static. Nigerians pay heavy insurance premiums because this country is stigmatized.

You have to insure in Lloyd’s of London and other places abroad. It is a must because all the insurance companies in Nigeria put together cannot even insure one aircraft. So, you have to go abroad to insure, and they slam us with heavy premiums,” said Onyema.

The regulator had mandated all insurers to shore up their capital or have their licenses revoked, but the deadline for the recapitalization has been postponed to allow firms recover from the coronavirus pandemic.

African Alliance supports NCRIB Insurance awareness drive Foremost life Insurer, African Alliance Insurance PLC, in partnership with the Nigerian Council of Registered Insurance Brokers (NCRIB) recently took the gospel of insurance to the grassroots through an Insurance Awareness Walk in Abuja.

The Walk which was led by Barrister Rotimi Edu, the President of the Council of NCRIB, the NCRIB Abuja Area Committee Chairman, Alhaji Abass Owolabi and the Managing Director/Chief Executive Officer of African Alliance Insurance PLC, Mrs Joyce Ojemudia, saw the combined team of African Alliance and NCRIB staffers sensitize the popular motor owners and park staff at Jabi about the benefits of insurance.

At the event, the President of the NCRIB, Barrister Rotimi Edu, urged the Park to look beyond today and safeguard the future of their loved ones in the case of eventualities.

In her speech, Mrs Joyce Ojemudia, MD/CEO African Alliance Insurance PLC, pointed out that unlike the general perception, insurance is not for the rich nor wealthy.

“All those small small changes you spend daily can help you build a financially free tomorrow. You all know about Esusu, for example; at African Alliance Insurance PLC, we have a plan so named that not only helps you make your contributions periodically but offers a life cover in case anything happens,” she added.

Responding, the Park leadership

represented by Comrade Taiwo Oshobu, the Jabi Branch Chairman, National Union of Road Transport Workers (NURTW) thanked the AAI/ NCRIB contingent for the eye opening session and charged the Union members to heed the pieces of advice and take up insurance plans as a contingency for life.

Later in the evening, the African Alliance team hosted the Members Evening of the Abuja Area Committee of the NCRIB. There, the company’s giant strides in terms of claims payment, digital expansion as well as overall capacity building were brought to fore. As at the 20th of March, the firm’s MD/CEO, Mrs Joyce Ojemudia, in her speech, revealed that a total of N1.96bn had been paid in claims.

“Recall that we had paid N1.42bn in the first two months of the year, this means we have paid an estimated N540m more in just 20 days in the month of March! The breakdown is as follows: we paid N373.59m in Group Life claims; N291.07m in Individual Life claims; N200.27m in Takaful claims; Esusu N11.25m while Annuity was N1.08bn,” she concluded.

African Alliance Insurance PLC was incorporated in 1960 to provide life insurance services to all classes of Nigerians. In its 62 years, the firm has delivered on the mandate by helping business and individuals succeed across all strata of the society.

L-R: Bode Raji, Head Finance; Amaka Okafor, Head Northern Region; Joyce Ojemudia, MD/CEO and Olabisi Adekola, ED, Finance, all of African Alliance Insurance PLC at the firm’s recent insurance sensitisation Walk in Abuja.

Photo: African Alliance

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