The Nigerian Stock Exchange has encouraged funds managers in the country to take advantage of the opportunities available in the Real Estate Investment Trust market through product innovations that meets investors’ needs and appetite.
The Chief Executive Officer, NSE, Oscar Onyema, made the position of the Exchange known at the Facts Behind the Offer ceremony of Top Services Limited Real Estate Investment Trust at the stock exchange.
Onyema said, “I encourage investors to take advantage of the opportunities presented by Real Estate Investment Trust schemes which typically offers stable and regular income distribution from diversified portfolio of real estate and real estate related assets.
“I also urge fund managers to continually make available educational materials on REIT that will help investors make informed decisions.
“The Exchange promises to continue its collaboration with market stakeholders – regulators, dealing member firms, fund managers, issuing houses, among others, to collectively promote increased awareness and education on REITs among the investor community in Nigeria.”
The Bank of Industry (BoI) and Bayelsa State government have unveiled a N2 billion Micro Small and Medium Enterprise (MSME) matching development fund to support entrepreneurs in Bayelsa as part of efforts to encourage value-addition to the nation’s natural resource endowments.
Indeed, the development finance institution (DFI) highlighted the need to drive MSMEs especially in agriculture, considering the sector’s potential to achieve industrialization and support federal government’s efforts to diversify the economy.
Bayelsa State Governor, Henry Dickson, explained that entrepreneurship agreement such as the one initiated with the bank is vital for rapid economic growth in the state.
He said the partnership is coming at a time when the State government is making efforts to create a N10 billion entrepreneurship development fund to be managed by the ministry of industry, trade and investment, adding that the fund will be geared towards supporting businesses and lots of initiatives in the State’s fashion industry. In his words: “This is why the government, among other programmes created a micro finance bank for the first time to address challenges of funding. We believe that at the end, it is the small scale businesses that will drive industrialization in Nigeria.”
He commended BoI for its support towards entrepreneurship development in Nigeria, saying that the war against poverty and Nigeria’s quest to industrialise would require collective efforts by all relevant government agencies and the private sector. He said there would be similar initiatives with other lenders and players in the industry to make up with the N10 billion entrepreneurship fund.
“I want to thank you for believing in Bayelsa. You have always been available to lend support to encourage our people. This State needs support and I am glad BoI is showing the way and we will take this partnership to all federal agencies who have the capacity to work with us to create wealth and employment opportunities in Nigeria,” he added.
Earlier, the acting BoI boss, Waheed Olagunju, said the fund would only be given to people after going through a rigorous capacity building programme organised by development centres of the Pan African University in partnership with the Entrepreneurship Institute in Bayelsa and entrepreneurship development centres in the State.
Olagunju assured the people of Bayelsa that the fund would be disbursed at single digit interest rate, stating that the capacity building programme will help convert aspiring entrepreneurs’ visions into business models to prepare good business models in order to give their business a high chance of succeeding.
“Globally, out of every 10 well appraised projects, about eight have the chance of succeeding. We are also going to help them identify areas where they will like to improve on, the risk involved, how to mitigate those risks in order to reduce the casualty rate of businesses.
“We are here to assure you that as a federal government institution, we will collaborate with you and work with all the relevant agencies in the State ranging from the enterprise development agencies, the micro finance and the entrepreneurship development institute as well as the entrepreneurship development centre at the Pan African University in Lagos and also many development partners as possible both local and foreign will be pooled into working with the State to ensure we align with your vision of developing Bayelsa State while also empowering citizens.” He said the DFI will support mainly enterprises that add value to the nation’s natural endowments in line with the bank’s commodity-based industrialisation strategy aimed at adding value to the nation’s vast resources which includes agriculture, solid minerals and oil.
“We will work with the entrepreneurship development centres to identify potentially, viable micro small and medium enterprises to empower Bayelsans,” he promised.
Allan Gray Ltd., the largest manager of non-government investment funds in Africa, has increased its stake in Zenith and Access Banks.
The South African investor, based in Cape Town, is betting on Nigeria’s banking industry despite poor performances by the oil companies it depends on and widespread calls for the naira to be further devalued, reported Bloomberg yesterday.
Allan Gray’s Chief Investment Officer, Andrew Lapping disclosed the investment move in a February 10 interview in Cape Town.
He didn’t say how big the holdings are or how many shares his company had bought in each of the banks.
“We see a lot of value in Nigerian banks,” Lapping said. “Most people think they’re all going to zero because of the bad debts. We think they will survive” because high interest rates make the banks profitable and they have less debts to equity compared with European lenders, he said.
Trading data for the month of January showed that 232.210 million shares of Zenith Bank valued at N3.605 billion were traded. Last December, 224.007 million shares worth N3.234 billion were traded.
In the case of Access Bank, 264.230 million units of the bank’s shares valued at N1.789 billion exchanged ownership in January while 171.570 million shares valued at N953.045 million were traded in December.
Access Bank’s Chief Executive Officer, Herbert Wigwe said last month that the bank’s non-performing loans were expected to climb to “slightly below 3 per cent of total loans by the end of 2017”.
That compares with 2.1 per cent for the nine months through September.
The banking industry is under stress in Nigeria, where the economy was in a recession during 2016.
Non-performing loans escalated to almost three times the regulatory maximum and foreign investors are calling for authorities to boost flexible trading of the naira before putting more money into the country.
An oil price at half its 2014 levels, combined with sabotage and attacks on oil installations that have cut output, has limited dollar supplies in the country, which vies with Angola as Africa’s largest crude-oil producer.
The bad-debt ratio at Nigerian banks rose to 13.4 per cent last year. The naira was devalued in June and traded at 315.50 to the dollar by 6.53 a.m. in Lagos yesterday, while the unofficial, black-market rate was 507 naira to the dollar.
The official exchange rate should fall to 370 by the end of the year, Craig Metherell, an analyst at Avior Capital Markets Ltd. in Cape Town, said in a February note to investors. Investors are frustrated by central bank policies, he said.
“Dollar illiquidity and the inability to predict the central bank’s decisions remains a constant deterrent to dollar-based investors,” Metherell said. “While we argue that valuations look cheap, we find it difficult to justify investing new money given the current status quo.”
But Allan Gray isn’t the only investor that’s interested in Nigerian lenders.
Laurie Dippenaar, chairman of Johannesburg-based FirstRand Ltd., Africa’s largest bank by market value, said last month that it’s looking to buy a mid-sized bank.
Diamond Bank Plc, Sterling Bank Plc and Wema Bank Plc were among mid-sized Nigerian lenders that plummeted more than 40 per cent last year as the domestic economy performed the worst since the 1980s.
“Everyone thinks the naira is going to weaken, but I’m not so sure,” Lapping said. “The bad-debt problem can cure itself over time.”
Nigerian banks are also attractive because of their small size — in an economy that vies with South Africa as the continent’s largest — adds to their growth potential, while lending as a proportion of equity remains low at 3.5 times, Lapping said. Still, the industry’s exposure to oil remains a concern, he said.
Guaranty Trust Bank Plc, Nigeria’s biggest bank by value, has a market capitalization of N715 billion ($2.3 billion), Access Bank is valued at about N194 billion and Zenith at about N475 billion.
FirstRand, on the other hand, has a market value of 293 billion rand ($22 billion).
The Nigerian Stock Exchange Banking 10 Index has climbed 0.7 per cent this year as gains by Access Bank, Zenith, United Bank for Africa Plc and Fidelity Bank Plc helped compensate for losses in the other six members of the gauge.
“Maybe we’ve dug ourselves into a hole” by investing in Nigerian banks, Lapping said. “Even if it’s 50-50, going bust or going up, the upside is so much that it’s worth the risk.”
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, disclosed on Wednesday that crude oil production in the country had risen to two million barrels per day.
This means the country now produces additional 200,000 bpd of crude oil, up from the 1.8 million bpd recorded in recent times.
Kachikwu made the disclosure when he met with the House of Representatives Committee on Petroleum Resources (Upstream) to defend the 2017 budget estimates of the Ministry of Petroleum Resources.
The committee is chaired by a member from Delta State, Victor Nwokolo.
Kachikwu explained that ongoing repairs on oil facilities and negotiations between the Federal Government and militant groups in the Niger Delta region were yielding results.
The minister, who also spoke on the Forcados oil terminal, informed the lawmakers that repair works on the facility were nearing completion.
He stated that in a matter of weeks, the facility could be reopened, a development the minister said would further shoot up oil production to 2.2 million bpd.
“In some weeks, we will be able to progress to 2.2 million bpd, which is the target of the (2017) budget,” he added.
Forcados, one of Nigeria’s major shipment terminals, was shut down around March last year after militants blew up a sub-sea crude pipeline that supplied the facility.
The incident led to the shut-in of about 250,000 barrels of crude and the attendant dip in oil revenue to the government.
But, Kachikwu raised hopes on Wednesday that with the repairs almost completed, the projected 2.2 million bpd crude projection would be met.
The minister also spoke on other plans of the government to repair or replace ageing distribution lines and platforms to improve delivery of products.
However, he alluded to poor release of budgeted funds as a challenge slowing down some projects of the ministry.
According to the minster, releases averaged 50 per cent in 2016.
But, in spite of the poor releases, the ministry raised its 2017 budget to N69bn, up from the N61.8bn budgeted in 2016.
Salaries of ministry workers will consume N61bn out of the money, while capital projects will cost N7bn.
When members asked Kachikwu for updates on the government’s proposal to build modular refineries in the Niger Delta, he said the idea was to address the problem of illegal refineries.
“We are looking at 2,000 to 5,000 barrels per day to suck in individuals who engage in illegal refining of products,” he said.
He, however, clarified that the modular refineries would refine mainly kerosene and diesel.
When some northern lawmakers sought to know whether other parts of the country would have such refineries sited in their areas, the minister replied, “We will extend them to other parts of the country.
Access Bank Plc is to divest from Stanbic IBTC Pension Managers Limited (SIPML) in compliance with the Central Bank of Nigeria (CBN)’s regulation on the Scope of Banks Activities and Ancillary Matters.
Access Bank holds 17.56 per cent equity in SIPML. However, in a notification to the Nigerian Stock Exchange (NSE), made available yesterday, Access Bank said it had received all regulatory approvals to sell the bank’s equity shareholding in SIPML to the company’s majority shareholder, Stanbic IBTC Holdings Plc.
The filing, signed by the Company Secretary of Access Bank, Mr. Sunday Ekwochi reads: “Following the CBN’s directive to Access Bank to divest from SIPML in compliance with the CBN’s regulation on the Scope of Banks Activities and Ancillary Matters, No. 3 2010, the board of directors of the bank is pleased to announce that it has received all regulatory approvals for the sale of the banks’ 17.65 per cent equity shareholding in SIPML to the company’s majority shareholder, Stanbic IBTC Holdings Plc.”
“Further to the provisions of Rules 17 of the NSE Rules Book 2015, and Rule 187 of Rules and Regulations of SEC 2013, which regulate the disclosure of material non-public information to the NSE, we hereby notify the NSE of this transaction in view of the possible material effect it may have on the value of Access Bank’s securities listed on the NSE.”
SIPML was set up with a mission to enable Nigerians retire well after their working lives. “We want to help people plan for their retirement to ensure that the retirement phase is as rewarding and productive to them as possible,” the company said.
SIPML has been organising nationwide campaign to raise awareness about retirement planning. According to the company, the campaign, which was launched four years ago, is part of initiatives aimed at encouraging retirement planning amongst Nigerian workers and employers.
About 600 participants attended the 2016 forum in Lagos where they gained very valuable tips from seasoned experts and regulators on the imperative of putting in place effective plans to ensure a smooth transition to retirement.
Meanwhile, trading resumed at the stock market on a negative note as the NSE All-Share Index fell by 0.38 per cent to close at 25,244.29. The depreciation recorded in the share prices of Access Bank, Nigerian Breweries, Oando, ETI and Stanbic IBTC were mainly responsible for the loss recorded in the NSE ASI.
The Federal Government is looking at generating as much as $16.4bn (N5tn at N305 to the dollar) through asset sales in the next four years to reduce the burden on the public budget.
The sales will help to tackle inefficiencies and stem “corruption in public enterprises,” according to a document prepared by the Ministry of Budget and National Planning, obtained by Bloomberg, which outlines the country’s plans for economic recovery from 2017 to 2020.
The document did not state the assets that the government might sell, but President Muhammadu Buhari is expected to introduce the proposal on an unspecified date this month.
However, there have been calls from within the government and outside for the government to consider the sale of some critical national assets to raise money to finance critical infrastructure in order to raise money to reflate the economy, which is being battered by recession.
For instance, the President of the Senate, Dr. Bukola Saraki, had on September 20, 2016, recommended the sale of some national assets and the utilisation of the proceeds for infrastructure development.
He said this was necessary for the nation to fight its way out of the current recession, adding that the measures should include part sale of the Nigeria LNG Limited; reduction of government’s share in upstream oil joint venture operations and financial institutions such as the African Finance Corporation; and the privatisation and concession of major/regional airports and refineries.
That same week, the National Economic Council, which comprises Vice-President Yemi Osinbajo and the 36 state governors, endorsed plans by the Federal Government to sell some national assets as part of efforts to address the economic recession in the country.
The sale of national assets was said to be one of the recommendations of the Minister of Budget and National Planning, Senator Udo Udoma, during the NEC meeting.
The same sentiment was echoed by the Emir of Kano, Alhaji Muhammadu Sanusi; and Africa’s richest person and President of the Dangote Group, Aliko Dangote.
However, the organised labour, comprising the Nigeria Labour Congress, Trade Union Congress of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers, kicked against the move, warning the Federal Government to reject the recommendations to sell the country’s assets.
The groups described the advice given by the Senate President, Sanusi and Dangote as selfish and not in the national interest, vowing to resist any further sale or concession of national assets under the guise of fighting economic recession.
When contacted on the latest development and for a list of the assets proposed for sale, the Special Adviser on Media to the Minister of Budget and National Planning, Mr. Akpandem James, said he was not aware of plan to sell the assets.
Rather, he said what the government’s Economic Reform and Governance Project prescribed was the privatisation of some selected national assets.
According to him, the privatisation of the assets is the second item on the 12 priority strategies to reposition the nation’s economy out of the 59 developed under the ERGP.
Estimations show that the country’s economy contracted by 1.5 per cent in 2016, partly because of a decline in the price and output of oil, the biggest export and revenue generator.
Buhari had proposed a 20 per cent increase in this year’s budget to stimulate the economy and help the Gross Domestic Product expand by an average of 4.7 per cent annually over four years and reach seven per cent in 2020.
The Head of Research at Vetiva Capital Management Limited, Pabina Yinkere, told Bloomberg, “They could look at reducing government stakes in oil joint ventures from around 55 per cent to 40 per cent or 45 per cent; that alone can generate over $10bn.
“Non-oil assets like concession airports are a more difficult sale because they will involve a lot of transactions.”
The government targets oil production of 2.5 million barrels a day by 2020 to boost export earnings, it said in the document. Output declined to an almost three-decade low of 1.4 million barrels a day in August after militants in the Niger Delta region bombed pipelines to demand more benefits from the resource.
New initiatives mulled by the Nigerian-British Chamber of Commerce (NBCC) could drive trade volume between Nigeria and the United Kingdom (U.K.) above projected N7.7 trillion (£20 billion).
The plan led by a ‘stern decision’ to promote made-in-Nigeria products, particularly non-oil goods as well as to harness the potential of Nigerians living in U.K. This could beat the projection that the trade volume between the two countries could hit £20 billion by 2020, the President NBCC, Dapo Adelegan, said while unveiling plans to mark the 40th anniversary celebration of the Chamber in Lagos.
The plans are expected to aid the current administration’s drive to boost export of non oil products and boost the country’s foreign exchange earnings thereby helping the Naira to withstand pressure from major currencies. It will also promote standard that would fast-track acceptance of Nigerian made products as well as encourage local industries, particularly small and medium-sized enterprises (SMEs).
But the government would have to sustain efforts and policies to encourage made-in-Nigeria products, Adelegan said, while listing the chamber’s contribution to national development, particularly in garnering business sustainability in different sectors of the economy. He said: “Despite recession, I see the trade surpassing £20 billion, which was earlier projected for 2020. The value of trade between Nigeria and the U.K. is about £8 billion, and oil makes up 60 per cent of this figure before.”
To him, the days when oil products topped table of trade volumes are gradually fading away, disclosing that foods and condiments accounted for about a billion pounds of export in 2015.
Part of the activities to mark the group’s bilateral relationship between the two countries include a trade Mission to the U.K. in May, focusing on the maritime, mining and mineral resources sectors, finance and investment. There will also be a lecture and photo/arts exhibition in March, including a documentary of milestones covered in the past 40 years, cocktail and launch of NBCC Abuja branch golf tournament in April.
Other activities include a Gala dinner and dance as well as patrons’ investiture first week in June and visits to Anambra, Lagos, Ogun and Ondo states.
Adelegan, who lamented the country’s economic situation, stressed the need for the business community not to allow political officeholders frustrate the future of the economy, adding that there is urgent need for diversification.
Patron and former president of the chamber, Akinola Akintunde, urged members and non-members to sign deals for the supply of non-oil products during the chambers trade mission to U.K., noting that many made-in-Nigeria products would be exhibited at the event.
The chamber’s Deputy President, Akin Olawore, expressing optimism, said the group’s initiative would stabilise the economy, and harped on the importance of promoting made-in-Nigeria products. Olawore also promised that NBCC would continue to improve the Nigeria-UK trade relations.
The strategy adopted by the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele to rebuild the country’s foreign exchange reserves has been identified as one of the primary reasons the country’s Eurobond issue was oversubscribed by 780 per cent last week, THISDAY has learnt. Investigations have shown that as of last week, Nigeria’s foreign reserves, which had hit $29.5 billion, climbed to $30.5 billion – the highest in more than 12 months – following the success of the Eurobond.
A CBN official, who accompanied Emefiele and others in the federal government delegation on the Eurobond road show to the United Kingdom and United States of America, informed THSDAY that the strategy adopted by the governor worked wonders in boosting investors’ confidence in the Nigerian economy and the country’s ability to meet its foreign obligations. He also disclosed that with the single-mindedness exhibited by the CBN governor to rebuild FX reserves, he has set a target to grow reserves to $35 by the middle of 2016 and $40 billion by the end of the third quarter of this year. The official, who preferred not to be named but is one of the architects of the central bank’s FX policy, held the view that contrary to the argument by several analysts that devaluing the currency and allowing a true float of the naira would attract foreign investors, it is actually the accretion of foreign reserves that would instill confidence in the economy. “With a comfortable level of FX reserves, foreign investors will be assured that once they want to take their funds out, they can do so without hindrance.
“If you noticed, once reserves fell to as low as $21 billion, investors were not attracted to the Nigerian economy, irrespective of whether we devalued or whatever we did with the FX market. “As long as they felt that you had insufficient reserves to meet your foreign obligations, they were not going to remain comfortable about investing in the Nigerian economy. They continued to exit the economy. “For example, look at South Africa and Kenya which have floating exchange rates, yet they have found it difficult to attract investors. They continue to flee their economies in droves.
“However, since the International Monetary Fund (IMF) announced in November that it had approved a $12 billion standby facility for Egypt, the country has been attracting almost $300 million a month. “What this means is that investors need to feel comfortable with your level of FX reserves and your ability to meet your obligations when they fall due. “So instead of the CBN getting distracted by the debate over devaluation or no devaluation, it has focused on reserves accretion, which as you know help to attract investors during the Eurobond sale last week. “Given what we know, the target by the CBN is to increase reserves to $35 billion by the middle of this year and $40 billion by the end of the third quarter,” he said. The official said the accretion of FX reserves could be attributed to two factors – the improvement of oil prices following the agreement by OPEC and Russia to slash oil production by 1.2 million barrels per day, and the relative peace achieved in the Niger Delta. “The oil price rally coupled with improved output from Nigeria have resulted in increased foreign earnings in recent months. “If you recall, about a year ago, revenue from the sale of crude oil fell to less than $400 million a month, but now Nigeria is making between $600 million and $700 million, enabling the CBN to save more,” he explained.
He was quick to add, however, that whatever savings the central bank is making must be complemented by a comprehensive fiscal and industrial strategy by the ministries and agencies of government. “A fiscal and industrial strategy is still required, because saving FX reserves alone will not give you the silver bullet,” he said. The official also allayed concerns that the savings being made by CBN could delay payments of maturing trade obligations and in turn continue to exert pressure on the FX market. He said: “The CBN remains committed to funding maturing trade obligations through FX forwards on the interbank market. “Importers with eligible transactions have nothing to be concerned about, as the central bank will continue to support them through the forwards arrangement already in place on the interbank market. “Also, confidence is growing that the speculative attacks on the naira in the parallel market would subside, because with the accretion of reserves, the CBN will have a schedule that would enable it to meet demand through FX forwards.” Also, THISDAY learnt that with the tenure of two deputy governors of the Central Bank of Nigeria (CBN) gradually drawing to a close, some Nigerians have started jostling for the top jobs.
Specifically, while the Deputy Governor, Economic Policy, Dr. Sarah Alade, who has been in the position since March 26, 2007, is expected to step down next month, the tenure of the Deputy Governor, Operations, Alhaji Suleiman Barau would come to an end by the end of this year. Both of them would have served two terms of five years each when their tenures expire. Section 8 (1) of the CBN Act 2007 states that “the Governor and Deputy-Governors shall be persons of recognised financial experience and shall be appointed by the President subject to confirmation by the Senate on such terms and conditions as may be set out in their respective letters of appointment”. To this end, THISDAY learnt that politicians seeking the plum jobs for their cronies as well as economists and other financial market experts who feel they are qualified for the jobs are already lobbying officials in the presidency. “There is intense lobbying for the CBN deputy governors’ jobs. Those seeking for these jobs are already putting their contacts in the presidency under pressure,” a source who pleaded to remain anonymous said.
The CBN Act is silent on whether a deputy governor can be appointed from within the central bank on the recommendation of the CBN governor. But there have been instances where directors of the central bank have been elevated to the position of deputy governors. There have also been instances where a CBN governor made the recommendations and were approved by the president. For instance, prior to her appointment as deputy governor, Alade was Director, Banking Operations Department. In that capacity, she served as Chairman Board of Directors, Nigeria Interbank Settlement System (NIBSS) and was the Secretary, National Payments System Committee (NPSC). She is from Kwara State, and in line with the federal character principle, she would likely be replaced by someone from any of the states in the North-central geopolitical zone. As deputy governor (Economic Policy), Alade superintends the Economic Policy Directorate comprising the Research, Monetary Policy, Trade and Exchange, Statistics Departments and Financial Markets Departments. Also as the Chairperson of the Monetary Policy Implementation Committee (MPIC), she interfaces with operational departments and coordinates technical inputs for the Monetary Policy Committee (MPC). Barau, who is expected to step down by December, is from Kaduna State and would also likely be replaced by someone from the North-west region of the country. He superintends the Banking and System Payment Directorate, Branch Operations, Currency Operations, Information Technology and Reserve Management.
Jaiz Bank Plc, a non-interest financial institution is targeting a profit After Tax (PAT) of N5.56 billion by the end of the 2021 financial year from the current N1.34 billion position.
The bank disclosed this while addressing stockbrokers at the company’s, Facts Behind the Figures, shortly after it listed by the introduction 29.46 billion shares of 50 kobo each at N1.25 per share worth N36.83 billion on the floor of the Nigerian Stock Exchange (NSE).
The listing, which added about N37 billion to the market capitalisation of the Exchange, according to the bank, would promote liquidity for the bank’s shares; enhance value of the company and increased transparency.
The Managing Director of JAIZ Bank, Hassan Usman, explained that the bank is also projecting to grow its total income from N6.63 billion in 2017 to N16.19 billion in 2021. “It is also in fulfilment of an earlier promise made at inception of the bank to the shareholders and the public. Our listing today, I am sure will elicit public confidence that non-interest banking provides alternative model that will contribute to the socio-economic development of our country.”
Usman said the bank has a dividend policy that strikes a balance between retaining sufficient cash in the business to finance its organic growth strategy and rewarding its shareholders, who have come a long way in supporting the bank’s vision since its initial public offering (IPO) in 2003. According to him, the bank’s corporate plan outlines the way forward with the strategies, priorities and activities it will focus on to achieve its financial goals.
“Based on our projection, we anticipate to have a pay-out ratio of not less than 50 per cent over our current plan period,” he said. Speaking on core strategic pillars for the actualisation of the financial projection, Usman said: “Our corporate plan outlines our way forward, with the strategies, priorities and activities we will focus on to achieve our financial goals.
“We have set out on a path of reinvention of the banking landscape in the country. This journey over the next few years will focus on changing how banks should operate to better improve the lots of the community, while delivering on their commitments to the investors. We are focused on building on our culture of ethics and taking the necessary business decisions to align our perspective with client expectations,” he added.
The Chairman of the Company, Dr. Umar Abdul Mutallab, said the bank has gone through long struggle, which according to him was over.
He noted that despite being an Islamic bank, the financial institution is meant for all irrespective of religion, class or culture and urged Nigerians to embrace the non-interest bank as they stand to gain a lot from the bank.
The acting Managing Director of the National Economic Reconstruction Fund (NERFUND), Mr. Ezekiel Oseni has said the fund was unable to pay staff salaries while majority of the staff had been laid off owing to the N17.5 billion owed it by recalcitrant debtors. He has therefore appealed to the Economic and Financial Crimes Commission (EFCC) to help recover the outstanding amount.
According to him, eight percent of the total customers, who borrowed money accounted for over 81 percent of total non-performing loans. Speaking during a courtesy visit to the EFCC in Abuja, Oseni said since he assumed office in August last year, he had engaged with 135 customer, who borrowed between N1million to N5million and had been making efforts to repay. But the challenge according to him, lied with the big debtors who owed between N50million and above- and have sworn not to pay back simple because it was public funds.
Others said it was only their own share of the national cake, he told the anti-graft officials. Majority of the loans lacked requisite collaterals and were merely backed by guarantees from past political office holders. Some of the big debtors were said to have resorted to endless litigation to frustrate recovery efforts. He said the situation has rendered the fund broke and currently unable to pay staff salaries while many had recently been sacked, with more to follow if nothing was done to arrest the situation.
Oseni, therefore, asked the EFCC to set up a special task force in NERFUND to help in the investigation and recovery of N14.2 billion owed by the so-called big debtors. Responding, Chief of Staff to the acting EFCC Chairman, Mr. Ola Olukoye on behalf of his boss, Ibrahim Magu, assured the NERFUND of maximum cooperation, adding that the request was within its area of jurisdiction. He further assured the NERFUND boss that the commission would be ready to assist in the recovery after a memorandum of understanding is signed to that effect.
NERFUND was set up to provide needed medium – to long-term financing to viable Small and Medium scale production enterprises. The grand objectives are to increase the quantum of goods and services available for local consumption and export, provide needed employment, expand our production base and add value to the economy.
It is designed to aid in the cake-baking process, and as such, fund disbursements by the NERFUND will be based on competitive efficiency”. Since there is more demand for the NERFUND loans than the resources currently available can satisfy, only the most viable projects may benefit from the programme. Your challenge is to put together one of the most viable projects to benefit from the NERFUND programme. The NERFUND has been very successful in reorientating the nation towards a production culture from the old trading culture. So far, the NERFUND has approved loans for one thousand four hundred and ninety seven projects, valued at over N5billion.
