Business News Archives — Page 17 of 32 — Business Bells

Category: Business News

FirstBank Holds SMEConnect Webinar, Enlightens Entrepreneurs on Accessing Finance for Their Businesses

Nigeria’s premier and leading financial inclusion services provider, First Bank of Nigeria Limited will hold its SMEConnect Webinar by 11am on Thursday, 8thJuly 2021 with “The ABCs of Accessing Finance for your Business” being the topic to be discussed at the event. Participants are required to register for the event via https://firstbanknigeria.zoom.us/webinar/register/WN_SU8vLK_OToec2EwZLqljZA.

The FirstBank SMEConnect webinar is one of the ways through which FirstBank delivers its capacity building pillar of its value propositions to SMEs.

With FirstBank’s over 127 years of being woven into the fabric of society, FirstBank has been at the forefront of impacting businesses, and has consistently won awards for providing innovative solutions for customers and other stakeholders including SMEs.

The event topic “The ABCs of Accessing Finance for your Business” is designed to expose SMEs to various finance opportunities that they can access and utilize to foster the continued growth of their businesses, whilst optimising the sustenance of their business operations in contributing to national development.

SMEConnect webinar is one of the ways through which FirstBank delivers its capacity building pillar of its value propositions to SMEs. The Bank’s SMEConnect initiative is focused on impacting SMEs in key areas that affect their business growth and development.

The scope of the Bank’s SME services covers small/medium scale manufacturing firms, merchants (suppliers, distributors etc.), professional firms(law, consulting, audit etc.), agricultural, Churches, Mosques and NGOs whose annual debit turnover is between N5M and N500M.

Guess Speakers at the event include: Damilola Salawu – Partner/Head Technology, Innovation and Fintech, Olaniwun Ajayi LP and Patrick Ehidiame Akhidenor – Head Credit Analysis & Processing, First Bank of Nigeria Limited.

Speaking on the event, Deputy Managing Director, Mr. Gbenga Shobo said, “amongst many factors, access to finance, plays a critical role to the growth and sustenance of every business venture, especially the SMEs and we are delighted with the role we continue to play in connecting SMEs to finance opportunities that are essential to boosting their businesses.

“With FirstBank’s over 127 years of being woven into the fabric of society, we remain at the forefront of positively impacting businesses, especially the SMEs and enjoin all business owners and individuals intending to own theirs to be part of the event’’.

Only recently, FirstBank was honoured with the Africa Bank of the Year and Innovative Banking Product of the Year Awards in recognition of its sterling performance in delivering over 127 years of development-oriented services as Africa’s foremost financial inclusion services provider.

These awards came on the heels of a hat-trick of awards the Bank bagged – the 2021 ‘’Retail Banking CEO of the Year Nigeria’’, ‘’Most innovative Retail Banking App Nigeria’’ and ‘’Best CSR Bank Nigeria’’ – at the Global Banking and Finance awards. In addition, Brand Africa ranked FirstBank the second most admired financial services brand for the second year running.

What remains apparent in the awards is the Bank’s commitment to innovation as exemplified in FirstMobile. Easy to use, secure, fast, convenient (offering “Instant Banking, Anywhere!”), innovative and interactive, FirstMobile was designed to offer lifestyle solutions which make banking an exciting experience for FirstBank customers.

The self-service mobile banking product allows customers in possession of the phone linked to the mobile number on which they receive FirstBank SMS alert messages and who possess a Naira Mastercard (debit) or a Verve debit card and have downloaded and activated the app, to transact via its secure platform on their smart devices without intervention from FirstBank. The app can be downloaded from Google Play Store (for users of android devices) or the App Store (for iPhone and other iOS devices’ users) and also from FirstBank website via the URL: https://www.firstbanknigeria.com/getfirstmobile.

About FirstBank

First Bank of Nigeria Limited (FirstBank) is the premier Bank in West Africa and the leading financial inclusion services provider in Nigeria for over 127 years.

With over 750 business locations and over 100,000 Banking Agents spread across 99% of the 774 Local Government Areas in Nigeria, FirstBank provides a comprehensive range of retail and corporate financial services to serve its over 30 million customers. The Bank has international presence through its subsidiaries, FBN Bank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a Representative Office in Beijing.

The Bank has been handy at promoting digital payment in the country and has issued over 10million cards, the first bank to achieve such a milestone in the country. FirstBank’s cashless transaction drive extends to having more than 10million people on its USSD Quick Banking service through the nationally renowned *894# Banking code and over 4.5 million people on FirstMobile platform.

7 July 2021
Senate Approves Buhari’s $6bn Loan Request

The senate has approved the $6.1 billion loan request by President Muhammadu Buhari.

The $6.1 billion loan request — N2.343 trillion — was approved after Clifford Ordia, chairman of the loan and debts committee, presented a report on the floor of the upper legislative chamber on Wednesday.

The president had asked the National Assembly to approve the loan in May.

Buhari said the loan will be raised from multilateral and bilateral tenders as well as the international capital market.

While presenting his report, Ordia said the request is not new as it was approved in the borrowing plan when the national assembly passed the 2021 budget.

“What we are about to pass is not a new borrowing, it has been approved in the 2021 budget,” the senator representing Edo central said.

After the request was approved, Senate President Ahmad Lawan said the national assembly must make sure that there are no frivolous expenditures by the executive.

“Let me thank the committee, this is not a new loan. This is a borrowing plan we have approved,” Lawan said.

“What we have done is to provide the necessary resolutions for the implementation of it.

“Every cent counts. Our committees must be alive to oversee it. No frivolous expenditures should be entertained.”

7 July 2021
Senate Passes N982bn Supplementary Budget to Boost Military Operations

The senate has passed a supplementary budget of N982 billion for the year 2021.

The budget was passed on Wednesday after Jibrin Barau, chairman of appropriation committee, presented a report during the plenary session.

While presenting his report, Barau said his committee engaged with Zainab Ahmed, minister of finance, and other stakeholders on the request.

While N123 billion was approved for recurrent (non-debt) expenditure, N895 billion was earmarked for capital expenditure.

The figure passed by the senate is N87 billion higher than what the executive sent as supplementary budget.

President Muhammadu Buhari asked the national assembly to approve the supplementary budget request in June.

The budget is meant to boost military operations and to facilitate the procurement of COVID-19 vaccine.

After the supplementary budget was passed, Senate President Ahmad Lawan said the relevant committees of the upper legislative chamber must carry out oversight to ensure that the funds are properly utilised.

“Committees should be alive to know these funds are applied. This is a very necessary intervention by this senate for the country,” Lawan said.

“We have to continue to fund our security agencies even in the 2022 appropriation bill to overcome these security challenges.”

Buhari had presented the initial 2021 budget proposal of N13.08 trillion to a joint sitting of the national assembly on October 8, 2020.

7 July 2021
Jumia’s Track Record Helps Grow our Business- Nano Strix CEO

In recent years, the activities of e-commerce companies have opened up growth opportunities for individuals and businesses, as corporations and SMEs partner with ecommerce brands to increase their sales and further expand the frontiers of online sales and services in the country.

One of the SMEs leveraging these e-commerce opportunities is Nano Strix, a 3PL logistics company based in Abuja. The company entered a partnership with Jumia in 2015 to provide third party logistics services, thus becoming the first logistics hub for Jumia in Northern Nigeria.

This was at the onset of e-commerce in the country, with a lot of reservations and skepticism about feasibility of the services. “When we first started with Jumia in 2015, we were the first pilot hub in Northern Nigeria. We started this in ecommerce infancy in Nigeria. When we first started, the package volume was low and it had to do with slow user adoption of ecommerce. People didn’t necessarily trust puting their debit cards online. people didn’t necessarily trust that what they placed an order for would come.

Over time, Jumia has built a name for itself where we now see a more positive trajectory in the industry. People are now more trusting of the services Jumia offers, putting their credit cards or debit cards online ordering items without the fear of being stuck with something they don’t like or expect,” explained Nano Strix CEO, Mohammed Maikudi.

For Nano Strix, it has been a journey of knowledge acquisition and growth with Jumia. According to Maikudi, partnering with the ecommerce firm has helped grow the business, created job opportunities, provided capacity building and technical support which has gone a long way in bringing the staff into the digital age.

“Our package volumes have started to increase over time, allowing us to employ more staff, provide more benefits to our staff and actually bring in our staff into the fold. For example, our volume has increased to a point now where we allow staff to bring into our own 3PL fleet, so everyone benefits from it,” He said.

Jumia’s logistics network occupies an important space in the logistics ecosystem in Nigeria. Jumia’s investment in the logistics sector has boosted hundreds of independent logistics companies by incorporating them into the Jumia logistics network. The impact of this on SMEs has been immense. To further extend its impact on SMEs, the company opened its logistics network to businesses outside its marketplace. During the pilot conducted in 2020, Jumia shipped almost half a million packages on behalf of more than 270 clients.

7 July 2021
BUA Jerks Up Cement Price

BUA Cement Plc has increased the ex-factory price of its cement product by N200 per bag.

The cement manufacturer, it was reliably gathered, unveiled its new price increase from N2,800 to N3,000 per bag over the weekend.

The price increase by BUA is contrary to what he has repeatedly asserted that his company does not have any justification to increase the price of cement as it is currently making enough returns.

It would be recalled that BUA Cement, in various statements issued between April 24 and June 18 this year, had refuted any claims of increase in the ex-factory price of its cement products by N300 per bag, stating that, “the company had no plans to increase prices of its cement now or in the near future.”

According to a statement issued on April 24, 2021, the company stated that, “the solution was not in an increase of ex-factory price at this period.”

The company, in its statement, had “reiterated its stand that the timing was not right for any increase in the price of major commodities, especially not at this period whilst Nigerians are still trying to recover from the economic consequences brought about by the Covid-19 pandemic – especially for a product for which all raw materials are locally sourced.”

On June 17, 2021, BUA Cement had issued a fresh statement titled ‘No Further Increase in the Price of BUA Cement’ in response to numerous clarification requests from its distributors and the public that the company does not seek to increase the ex-factory price of its cement in the foreseeable future.

“We are aware of the feedback and outcry from the public, and the government on the high retail price of cement in a period of economic recovery. BUA is also of the firm belief that the current retail prices of cement are higher than normal, hence our earlier communication not to increase ex-factory prices in the foreseeable future.

“As a responsible corporate entity, we refuse and reject associations with any actions that are deemed capable of projecting any industry we operate as a cartel.

Hence, whilst we respect that the said company has decided to increase their prices, we are not questioning the reason(s) why, but would like to make clear BUA’s position on a price increase.

“The timing is not right for any increase on BUA’s part, and we do not have any justifiable business reason to increase our prices (ex-factory) anytime soon.

We therefore urge our distributors not to panic as well as not engage in any arbitrary hike in the retail price of BUA Cement,” the statement read.

However, the increase in the company’s ex-factory price of cement has generated ripples among distributors, retailers and consumers across the country, with many wondering at the sudden change of mind of the manufacturer and this volte-face dishonesty.

In a market survey carried out on the price increase, a cement distributor in Kano, Alhaji Sadiq, wondered why BUA Cement changed its cement price, contrary to expectations and its promise.

“I don’t understand why BUA did this increase at this particular time. The chairman of BUA, Abdulsamad Rabiu, personally promised us that his company will not increase the price of its cement. Honestly, this is not good for our business and the industry. This is the biggest scam by any major corporate organisation in the history of this country,” he lamented.

Another cement distributor based in Asaba, Delta State Sunday Odogwu, expressed anger at the price increase by BUA Cement, despite all his repeated promises of no further increase in the price of BUA cement.According to Odogwu, “BUA told us several times before in their statements to distributors that they are not ready to increase their cement price.

“The last notice was just last month in June. Why are they doing this now? It is so not fair, and we are disappointed. Our customers will not understand all this and will be blaming us!”

“This shows total disregard and non-adherence to international corporate governance rules and standards. More importantly, his action shows a total disregard and disrespect for his customers, who over the years from their loyalty and patronage of his cement have in no small measure contributed to his business success.

“Initially, we believed the management of BUA as having sympathy for the populace. But this current position is not only deceptive but also portrays the organisation as having a hidden agenda in order to smear competition and gain an unfair market advantage over others in the industry”, he added.

6 July 2021
SERAP Drags FG to Court Over ‘$25bn Overdraft Taken From CBN’

The Socio-Economic Rights and Accountability Project (SERAP) says it has filed a lawsuit, asking the court “to compel the federal government to disclose details of a $25 billion (N9.7trn) overdraft reportedly obtained from the Central Bank of Nigeria (CBN).

In a statement on Sunday, Kolawole Oluwadare, SERAP’s deputy director, said the group also asked the court to ask the government to disclose spending details of the overdrafts and loans obtained from the apex bank since May 29, 2015.

Oluwadare said the suit followed SERAP’s freedom of information (FoI) request to President Buhari to disclose the overdraft and repayment plan details.

He added that ensuring transparency and accountability in the spending of CBN overdrafts and loans would promote prudence in debt management, reduce any risks of corruption and mismanagement, and help the government to avoid the pitfalls of excessive debt.

“Transparency and accountability in the spending of CBN overdrafts would also ensure that public funds are properly spent, reduce the level of public debt, and improve the ability of the government to invest in essential public goods and services, such as quality education, healthcare, and clean water,” SERAP said in a statement.

“It is the primary responsibility of the government to ensure public access to these services in order to lift millions of Nigerians out of poverty and to achieve the Sustainable Development Goals by 2030.

“Transparency and accountability in the spending of CBN overdrafts and loans would also improve the ability of the government to effectively respond to the COVID-19 crisis. This means that the government would not have to choose between saving lives or making debt payments.

“The recent overdraft of $25.6bn (about N9.7trn) reportedly obtained from the CBN would appear to be above the five-percent limit of the actual revenue of the Federal Government for 2020, that is, N3.9trn, prescribed by Section 38(2) of the CBN Act 2007. SERAP notes that five-percent of N3.9trn is N197bn.

“While Section 38(1) of the CBN Act allows the Bank to grant overdrafts to the Federal Government to address any temporary deficiency of budget revenue, sub-section 2 provides that any outstanding overdraft ‘shall not exceed five-percent of the previous year’s actual revenue of the Federal Government.”

“Similarly, Section 38(3) requires all overdrafts to ‘be repaid as soon as possible and by the end of the financial year in which the overdrafts are granted.’”

SERAP said Abubakar Malami, the attorney general of the federation and minister of justice, Zainab Ahmed, minister of finance, budget and national planning, and Godwin Emefiele, CBN governor, are joined in the suit.

The anti-corruption group said the court actions are brought in the public interest and in line with the Nigerian Constitution, the freedom of information act, the fiscal responsibility act, the Central Bank Act; the Debt Management Office Act; and the country’s international legal obligations.

No date has been fixed for the hearing of the suit.

5 July 2021
NCC Earns N150bn From Spectrum Licence Fees in Five Months

The Nigerian Communications Commission (NCC) says it generated N150 billion from spectrum licence fees between January and May 2021.

This was announced in a statement signed by Ikechukwu Adinde, NCC director of public affairs, on Sunday.

According to the statement, the commission said it surpassed its N36 billion projected revenue from the spectrum fees for 2021.

NCC said the figure represents over 400 percent increase in revenue budget performance in respect of spectrum fees generated by the commission in five months.

It said this reflects a significant contribution to the revenue drive of the federal government.

The commission said the N150 billion spectrum revenue achieved in the first half of the year has been remitted to the federal government in line with the provisions of the Nigerian Communications Act (NCA), 2003, which mandates it to remit proceeds from spectrum resources wholly into the government’s consolidated revenue fund (CRF).

Commenting on the revenue performance, Umar Danbatta, NCC executive vice chairman, said the uptick in spectrum fee was the result of the favourable turn of events for the telecom sector, which at the time of preparing the estimates for the 2021 budget of the commission was not clear due to the ravaging impact of COVID-19 on the global economy.

Danbatta said the 10-year spectrum fees made by some of the major operators directly impacted the projected spectrum fee favourably, adding that NCC believes that enthronement of effective regulation will continue to improve the general performance of the telecoms sector.

The statement also read that NCC has put in place an effective regulatory regime, which has significantly facilitated advancements in Nigeria’s telecoms industry, improved the operations of licences, and boosted gross domestic product (GDP) and federal government’s revenue generation.

In October 2020, NCC announced that it generated and remitted N344.71 billion in revenue to the federal government’s CRF in the last five years.

5 July 2021
PHOTOS: Coscharis Unveils Ford Trucks At 15th Lagos Motor Fair

Some Ford Trucks vehicles on display by Coscharis Motors at the 15th Lagos Motor Fair held at the Federal Palace Hotel, Lagos recently

R – L : Abiona Babarinde, GM, Marketing and Corporate Communications, Coscharis Group; Dr. Aliyu Jelani, DG, National Automotive Design and Development; Ifeanyi Agwu, MD, BKG; Julie Nwaoha, Truck Enthusiast during the unveiling of Ford Trucks brand into Nigeria represented by Coscharis Motors at the 15th Lagos Motor Fair held at the Federal Palace Hotel, Lagos recently

5 July 2021
Institute of Directors Elect New President, Council Members

The Institute of Directors (IoD) Nigeria has elected Dr. Ije Jidenma as its 17th President and Chairman of its Governing Council.

Jidenma’s election took place during the 37th Annual General Meeting (AGM) of the IoD that was held recently at the Institute’s Secretariat in Lagos State.

According to a statement signed by the Director General and Chief Executive Officer of the IoD Nigeria, Mr. Bamidele Alimi, Jidenma was elected for a two-year tenure in line with the institute’s rules and regulations to succeed Mr. Chris O. Okunowo, who retired after his tenure expired at the 2020 AGM.

Other officers elected during the AGM, according to Alimi, were the First Vice President, Mr. Tijjani Borodo and the Second Vice President, Mr. Adetunji Oyebanji.

Jidenma had served as the First Vice President of the institute prior to her election as president and chairman of council.

Alimi described her as, “an accomplished management consultant and professional. She holds a Ph.D. in Psychology with specialisation in Psychometrics from the University of Lagos.”

She is the Founder and Chief Executive of Leading Edge Consulting and has consulted for SMEs, indigenous companies, the public sector, multilateral organisations, and international non-governmental organisations.

She is also the Managing Partner of the IRC Global Executive Search Partners that is ranked as the fastest-growing executive search alliance in the world, with footprints in over 90 cities of the world and across six continents, where she currently leads its EMEA Energy, Natural Resources and Infrastructure practice.

Earlier on in her career, she had worked in operational capacities as a Training and Development Officer with the Industrial Training Fund from 1983-1986 and as a Senior Consultant with Price Waterhouse (now PwC) from 1986-1990.

She later worked in executive capacities as Head of Human Resources as well as Head of Strategic Planning of Merchant Bank of Africa before leaving the bank in 1995 in pursuit of her doctorate degree.

Jidenma is an alumnus of some of the world’s most renowned educational institutions, including the Chief Executive Programme of the Lagos Business School and the Leading Professional Services Firm Programme of the Harvard Business School among others.

She has also worked assiduously in her various spheres of influence to elevate the African trajectory and narrative, bringing the same to the global stage to enrich humanity.

4 July 2021
FG Suffers N15tn Revenue Shortfall in Six Years

The Federal Government recorded a revenue shortfall of N15tn from 2015 to 2020, official data obtained by our correspondent have shown.

The revenue shortfall led to a funding gap of N3.75tn in the implementation of capital projects of Ministries, Departments and Agencies, according to an analysis of the budgetary provisions and budget implementation reports from the Budget Office of the Federation.

According to the documents, the total revenue projection for the six-year period was N31.9tn, while about N16.9tn was generated, resulting in a shortfall of N15tn.

The total revenue allocated for capital projects in the period under review was N11.9tn, while the actual amount released to the MDAs was estimated at N8.2tn.

The data showed that in the 2015 fiscal year, the Federal Government approved the sum of N557bn for capital projects, out of which N387bn was actually released, resulting in a funding gap of N169.6bn.

From the N1.58tn budgeted for capital projects in 2016, the sum of N1.21tn was released, creating a deficit of N368bn.

For 2017, N1.56tn was released for the execution of capital projects, out of the budgeted amount of N2.17tn. This resulted in a funding shortfall of N611.35bn.

In 2018, the government approved N2.8tn for capital projects but released N1.8tn for implementation. This caused a funding deficit of N1.01tn.

Further analysis of the data revealed that in 2019, a funding gap of N863.9bn for the execution of capital projects was recorded.

In the 2019 annual budget, the total amount of N2.03tn was allocated for capital expenditure, out of which N1.16tn was released.

An analysis of the revised budget for the 2020 fiscal year showed that N2.6tn was projected to be spent on capital projects, but N1.94tn was released. This resulted in a funding gap of N733bn.

Economists told our correspondent that the annual revenue shortfalls could be largely attributed to the disproportionate reliance of the Nigerian economy on crude oil.

They advised the Federal Government to focus on expanding its revenue sources in order to generate adequate revenue to finance capital projects for the benefit of the country’s economy.

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They explained that the revenue projections contained in the annual budgets were largely based on crude oil prices.

A professor of Economics at the University of Ibadan, Adeola Adenikinju, said, “What the government should do is that they need to reduce their dependence on oil because oil will continue to transmit shocks and volatility to the revenue system.

“And as much as possible, the executive and the legislature should work together to create a benchmark price for oil that is realistic; it shouldn’t be set arbitrarily. In other words, they should be more realistic in projecting oil price to mitigate the volatility on that side.

“By expanding our revenue base this will enable us fund capital projects that are critical to a developing economy like ours.”

Another expert and the Chairman Chartered Institute of Bankers of Nigeria, Prof. Uche Uwaleke, lamented that whenever the government recorded a revenue shortfall, the capital component of the budget suffered while the recurrent expenditure was prioritised.

He said, “Prioritising capital projects will create job opportunities, reduce unemployment, reduce inflation via increased output, enhance ease of doing business and foreign investments, and strengthen the naira value.

“In short, doing so will facilitate economic growth and development generally.”

4 July 2021