Sunday, January 31, 2021

Coronavirus: NCDC Confirms 685 New COVID-19 Cases In Nigeria

The Nigeria Center for Disease Control (NCDC) on Sunday evening, 31st January 2021, confirmed 685 new cases of Coronavirus disease infection in Nigeria.

The new cases of COVID-19 infection were confirmed via a statement on the official Twitter handle of the health agency.

This brings the total number of confirmed COVID-19 cases in Nigeria to 131,242 which includes 104,989 discharged cases and 1,586 deaths.

Below is the breakdown of the latest cases according to states with Lagos State having the highest number of cases followed by Kaduna State.

Lagos-355
Kaduna-58
Nasarawa-46
Kano-40
Akwa Ibom-33
Katsina-26
Ogun-25
Osun-21
Rivers-16
Edo-15
Oyo-13
Ondo-12
Borno-11
Ekiti-9
Kebbi-3
Plateau-2

Meanwhile, the opposition Peoples Democratic Party (PDP) has alleged that President Muhammadu Buhari and the All Progressives Congress (APC) are not interested in the well being of Nigerians.

The PDP spoke against the background that President Buhari was seen in public disregarding COVID-19 protocols on social distancing and the use of facemasks during his visit to Daura in Katsina State on Saturday.

It will be recalled that Buhari was in Daura to re-validate his APC membership status.

However, citing pictures from the event, the PDP on Sunday accused the President of violating his own executive order on COVID-19 which stipulates a 6-month jail term for defaulters.

The PDP in a series of tweets from its Twitter account said the President and his party’s violation of the protocols is a pointer to the fact that the current administration can’t be followed or trusted to lead the country right.



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100 Lovely New Month Messages And SMS To Send To Friends, Family In February

Good morning Nigeria and welcome to the month of February, the second month of the year 2021. A happy new month to you, your friends and your family from Naija News Team.

Today is not just the first day of the month of February but it also marks the first the day of the month of “love” as “Valentine‘s Day” which is celebrated February 14 annually is fast approaching.

Being a new day of a new month, many expect good wishes from their friends, family members and loved ones, hence, a need to compile one.

Below are some new month messages you can send to friends, family members and loved ones.

1. Many surprises shall spring forth for you. You shall see no cause for regret. Happy new month sweetheart.

2. As you have a taste of a new month, your kife shall continue to taste sweet, even sweeter than honey. Happy new Month.

3. May you be highly placed above in all that you do this month. You shall remain uniquely distinct forever dear.
Happy new month.

4. As you lay the bed for the new month. May everything begin to work in your favour. Happy new month.

5. You shall tread this month with courage and grace
Every sample of wretchedness shall be replaced with wealthiness. Happy new month dear.

6. May you achieve your goals and be satisfied this month. Keep on smiling love.
Happy new month.

7. As the month progresses, you shall progress along. Enjoy the fun and catch the best of the best sweetie. Happy new month.

8. Before I start praying for you. I want to simply say “I LOVE YOU”. May you soar graciously and experience original favour that will skyrocket you to realms of supernatural miracles.
Happy new month.

9. Others may talk of evil and analyze with fear but it shall not move closer to you. Stay blessed my darling. Happy new month.

10. May you be celebrated this month my love. Happy new month.

11. May God establish you strong and give you all you need to make this month successful. Happy new month love.

12. May you never experience disappoint in this new month. Happy new month love.

13. I pray your glory never drown in the sea and may you continue to experience sweetness. Happy new month.

14. The eye of the Lord shall be on you to and fro to preserve you in this month and always. Happy new month.

15. An influx of joy, peace, happiness, stability, riches and mercy shall evade your existence and grant you the best always. Happy new month sweetest.

16. May you have good, sweet and interesting stories to tell as the month moves on. Happy new month Baby.

17. My dearest! I say to you, this new month shall be a remarkable month in your life. Happy new month.

18. My sweetness! You shall not run dry. You shall be filled to spread out to others. Happy new month, my love.

19. Babe! In this month, may you overtake and conquer every battle. Happy new month.

20. I may not be able to send you gifts my love but this new month message I’m sending shall give you all the gifts you desire. May you have continuous peace. Happy new month.

21. My cutie! Let promotion, success, elevation and favour robe you so tightly forever. Happy new month.

22. All bad experiences you faced last month shall not be your portion this month.
You shall be honoured beyond your imagination.
Happy new month.

23. Your graces and miracles shall be unstoppable.
You shall swim in the ocean of goodness.
Happy new month love.

24. All the sides contained in this month, no matter how wide, shall send you into beautiful days filled with lots of good purposes.
Happy new month, dearie.

25. You shall rise,
You shall flourish,
You shall excel,
You shall increase and
In all, you shall level high than your equals.
Happy new month. my love.

26. ”Foward ever” shall be your slogan and ”walking in greatness” shall be your story this month and always. Love you.
Happy new month, my pride.

27. Before the middle of the month, may your helper locate you.
Happy new month.

28. Today, the first day of the month,
You shall always be the first in all you do and your prayers shall not be withheld.
Happy new month Honey.

29. Let me use this medium to say “Thank you for loving me, dear”.
May your pocket never run dry and may the Lord make you the head always.
Happy new month.

30. Every time you see it’s a new month. You shall see brightness,
Every hour you look up the sky, the heavenly bodies will smile upon you and
Throughout, your days shall be blessed.
Happy new month, my Love.

31. When you look for reasons to smile, you’ll find. When you look for reasons to love, you’ll find. All shall turn positively for you this month love. Happy new month Lovely.

32. As you desire in your heart to plan this month, may your inspirations never die, your fear never overcomes, your courage increase and your soul be satisfied with favour and goodness.
Happy new month, my Dearest.

33. As this month starts to swell, so many things occur. I pray you’ll never experience any cause to be shattered. Happy new month sweetie.

34. My Darling! Be filled with life and hope for this month holds good tidings in stock for you. Happy new month sweetest.

35. You’re grateful for today, you’ll be greatful forever. You have happiness, you’ll be happy forever. Let your Joy and blessings expand from today till forever.
Happy new month, my Joy.

36. I wish above all that this month enriches your life with solid substances of wealth and great news of Joy. Happy new month Darling.

37. May your fountain of riches increase this month and may the Lord dwell with you each day. I love you so much. Happy birthday my sweetness.

38. Darling, I welcome you to this brand new month. May your strength increase. Happy new month.

39. I wish you a month free from sickness, pain, sorrow and tears. I decree wellness to your soul Honey. Happy new month.

40. Wonderful things happen to people. I pray that as the month begins, it will guide your paths to wonderful and glorious things. Happy new month sugar.
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Happy New Month My Love Messages

41. I wish you a sound mind and a haven of peace for this month as beautiful as you. Happy new month, my love.

42. I see today and I’m with you again. May good moments always dwell with you, my love. Happy new month.

43. Shine forth, baby! In this month, you shall do excellently well. Happy new month.

44. Every day of this month, I pray it fills you with smiles and sweet memories. Happy new month, babe.

45. Before you step out, let me drop this; This month, your shall tread gracefully on the paths of blessedness. Happy new month, Dearest.

46. Older months have passed with stale testimonies. May your testimonies be refreshed and doubled in this month. Happy new month, my love.

47. As your trips and meetings increase, may you have divine protection in all ways and standby favour. All the best Love. Happy new month.

48. In the things, you’ll do and the places you’ll go, may you find divine help and direction and your ways be blessed forever.
Happy new month Lovely.

49. If you’d want to remember the month that has brought tremendous changes to your life, this month won’t be an exception. May you expand graciously in all dear. Happy new month love.

50. We do not know what lies ahead, We just know we have plans and dreams to achieve. I pray the Lord walk and work with you this month and always. Happy new month sweetie.
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Happy New Month Love SMS Messages

51. May you continually sing songs of joy throughout this month dear. Happy new month.

52. I pray that every dark task hidden to you, the Lord will send his light to enlighten you and lead you aright. Happy new month, my Crown.

53. The month just started and others may want to start with a rush but I pray that you won’t rush into success failure and wrong vision. Happy new month, my angel.

54. Every ground you step, your feet shall be blessed. People would locate you for your divine miracles my love. Happy new month.

55. My love, I pray that you shall not be absent the day of your breakthrough. Happy new month sweetie.

56. As you’ve stepped into this month, may you continually see beautiful and amazing things always. Happy new month sweet.

57. I pray that as the month counts, your knowledge and wisdom shall increase. You shall have divine solutions to every difficult task. Happy new month love.

58. Babe! You shall have unlimited happiness and get abundant yieldings this month. Happy new month, dearie.

59. Little efforts shall bring you good wealth effortlessly. It shall be a favourable month for you. Happy new month sweetie.

60. Every step you take this month shall lead you closer to achieving your dreams. Happy new month.
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Cute New Month Message to My Love

61. This month shall give you beyond your expectations and make your life beautiful. Happy new month.

62. No hindrance shall stand before you. You shall be above and not beneath. Keep on shinning. Happy new month.

63. My love! In this month, I pray that our love grows stronger and our days be filled with lots of testimonies.
Happy new month.

64. I’m wishing you a blissful month that will bring gladness to your soul and surround you with love. Happy new month.

65. What awaits you this month, you don’t know. As you open the package the month presents to you, you shall never cease from laughing. Happy new month.

66. Today and throughout, may the impossible be made possible in your life. Receive extensive glory. Happy new month.

67. May the Lord guard your every move and cause you to lack nothing. Happy new month.

68. Every task ahead, may God give you solutions and make you a point of solutions to others. Happy new month.

69. Take charge, honey! It’s your month of divine upliftment. Happy new month.

70. When you sit and think, you shall remember this month for goodness and favour. Your joy shall remain forever. Happy new month love.
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Sweet New Month Message to My Love

71. Sweetheart! Never lose focus, remain positive and speak power to your life. You shall overcome, dear. Happy new month.

72. All shall be made perfect in your life and God shall mend all the pieces of your life. Happy new month.

73. As the month cooks up, I pray that you’ll never be defeated by the enemy and your life shall be spiced up with unique wisdom and understanding. Happy new month.

74. May the days of this month be free from trouble for you and may your eyes see good days always. Happy new month.

75. As the month loads all good things, may it be all yours. Happy new month.

76. From today, till forever. Let all that you do yield you gain without loss. Happy new month.

77. May you triumph victoriously in this month and you shall not be replaced of your position. Happy new month, my Dearest.

78. As you always smile, you shall continue to smile. I love you, baby. Happy new month.

79. This new month. You shall receive extraordinary favour from man and from God. Happy new month sweetest.

80. May your trust in God increase and may He uphold you till the end sweetie. Happy new month to you, love.
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Happy New Month Messages to My Wife or Husband

81. Uncommon things beyond human imaginations shall take place in your life. Happy new month.

82. As you begin this month, may it launch you into the ocean of wealth, a beautiful beginning and a wonderful ending. Happy new month.

83. I’m glad it’s a new month Darling. New things shall unfold in your life. Happy new month.

84. If you’ve started on the wrong path, this month shall place you in the right lane and keep you graced to achieve your goals. Happy new month.

85. May this month speak GRACE,
May this month spread JOY and
May this month shower EVERLASTING LOVE on everything you do. Happy new month.

86. May you hear pleasant news of Joy that will keep your soul calm. Happy new month.

87. My love! May this month sing sweet melodies that will keep your soul joyous forever. Happy new month.

88. Sweetie! I toast to better days ahead, a month of fulfilments, fruitfulness and happiness. Happy new month.

89. This month, I pray that you shall be of value, be useful and remain blessed all the days of your life. Happy new month.

90. My princess! All that you desire shall be granted to you in this month. I love you. Happy new month.

91. Honey! I pray that this month soars you to height unimaginable and floods your life with evidential blessings. Happy new month dear.

92. The opportunity of seeing a new month is not experienced by all but it’s here and you’re opportuned. May your joy increase. Happy new Month My Love.

93. At the dawn of this month, your happy beginning shall not end with sadnesses. Happy new month, baby.

94. A new month is here again. New plans, structure and timetable are made but having all, I pray that all the days of this month gives you uncommon victory. Happy new month darling.

95. My Dear, I pray that all your experience this month will bring your dreams to fulfilment. Happy new month, love.

96. May your days be bright and may this month radiate beautifully in all you do. Happy new month my love.

97. My treasure! A beautiful month, beautiful days and constant greatness are what I pray for you this month. Happy new month, my Dearest.

98. Sweetheart! My greatest desire for you this month is that all your pending request be answered with extra blessings. Happy new month Darling.

99. Gradually, the weeks would roll away but I pray for you that you’ll roll in this month with great success in all ramifications. Happy new Month sweetie.

100. Let me begin by saying. Baby! Happiness, peace, love, goodness and mercy shall never take a break from your life. Love you, dear. Happy new month love.

Please note that the messages contained in this article were not originally compiled by this author but were edited where necessary.



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Make It Uncomfortable For Old Leaders To Remain In Govt – Obasanjo Advices Youths

Former President of Nigeria, Olusegun Obasanjo, called on youths in the country to work together in making it uncomfortable for old leaders to remain in government.

Obasanjo stated this while speaking on a virtual interview with academic and historian, Toyin Falola, on Sunday.

The ex-president while answering a question from youth during the interview said, “You (youths) have everything going for you and I don’t want you to feel discouraged. Things are bad in Nigeria but I believe it is only for a short while because it depends on you.”

“Whatever my generation might have done wrong and I will be the first to admit that my generation has done a lot of wrongs, (but) it is for your generation to do it better.”

“Don’t just sit down and complain. Sitting down and complaining will make you be on the same level and you have to get what I called the critical mass of likeminded people who will be ready to say let us bring about the change. You can bring about the change if you get a critical mass of people that are ready to slug it out.”

“When people say when will these old hags go out of the way? I tell them they won’t go out of the way, you have to make them go out of the way. They won’t voluntarily go out of the way, you have to make it uncomfortable for them; I am not talking of violence but bringing pressure to bear to make it uncomfortable for them to go out of the way.”

The ex-president also said the worsening insecurity in the country was discouraging investors from coming into Nigeria.

He said, “When I talk to people particularly about development, they tell me money is out there for all the development that we want in Africa and particularly in Nigeria but the condition must be right.”

“Now, who would put money in a situation of insecurity –Boko Haram, banditry, kidnapping? Who would put money in that? And these investors are hard-headed calculators. They will sit down and do the calculation and give you why they should not come in. We had opportunities but squandered those opportunities.”



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UNIBEN alumni’s six new SANs

The University of Benin (UNIBEN) celebrates its outstanding alumni who recently became Senior Advocates of Nigeria, writes Southsouth Bureau Chief, BISI OLANIYI.

 

ALL roads led to the tastefully-decorated Indoor Sports Hall at the Ugbowo Main Campus of the Federal Government-owned University of Benin (UNIBEN) on Lagos Road in Benin City, Edo State on January 28, when the higher institution decided to celebrate six of its worthy alumni, who were recently elevated to the prestigious rank of Senior Advocate of Nigeria (SAN), with a special luncheon.

While waiting for the 12-noon event to commence, the Disc Jockey kept entertaining the dignitaries with cool music, while the professional caterer was also busy setting the four corners for various food items for the buffet, with the beautifully-decorated tables having assorted drinks for the invited guests, honourees, friends of UNIBEN and select members of the university community, with the celebration kicking off at 12:39 p.m.

All attendees at the elaborate event strictly complied with Coronavirus Disease (COVID-19) safety protocols, right from the main entrance to the hall, with the medical personnel insisting that everybody must first have their temperatures checked with the infrared thermometers, wash their hands with liquid soap under running water and use the provided hand sanitiser, which one of the medical officers described as double protection.

Prior to being allowed into the expansive hall, the planning committee members also ensured that the dignitaries had their facemasks on, before being directed to their tagged seats, while they also politely mostly replaced the guests’ non-disposable facemasks with the disposable facemasks for comfort and full protection, with social distancing strictly observed.

The spokesperson of great UNIBEN, Dr. Benedicta Ehanire, who was one of the three Masters of Ceremonies (MCs), also intermittently announced that all the guests must properly wear their facemasks, especially to cover their noses and mouths, in order to prevent the spread of the ravaging COVID-19, thereby protecting themselves and others.

The six new SANs, who are alumni of UNIBEN and well celebrated, are Chief Richard Oma Ahonaruogho, Adedapo Osariuyime Tunde-Olowu, Lotanna Chuka Okoli, Peter Adogbejire Mrakpor, Nureni Soladoye Jimoh, and Yusuf Asamah Kadiri.

The event was attended by the governorship candidate of the All Progressives Congress (APC), during the September 19 election in Edo State, Pastor Osagie Ize-Iyamu, an alumnus of UNIBEN; and Nigerian legendary highlife musician, Prof. Victor Uwaifo, who is also a senior lecturer at the university (UNIBEN), among other important dignitaries.

The Chairman of the occasion, Chief Charles Uwensuyi-Edosomwan, the Obasuyi of the Benin Kingdom, who is the first SAN of UNIBEN (2000), hailed the six honourees for making the university proud.

Uwensuyi-Edosomwan, a former Attorney-General and Commissioner for Justice in Edo State said Deputy Senate President Ovie Omo-Agege and the Chief Judge of Ekiti State, Justice Ayodeji Daramola, are some of the distinguished alumni of UNIBEN’s Faculty of Law.

He said: “UNIBEN, from when it was established in 1970, has shown itself by its facilities, faculties and products as one of the tertiary institutions in West Africa, known for excellence.

“Before the Faculty of Law of UNIBEN was established, taking in its first students in 1981, of which I am one, the university had long been known as the best in the fields of Engineering, Pharmacy and Medicine. UNIBEN’s first set of lawyers were trained by Prof. Itse Sagay, SAN, and his colleagues.”

The Chairman also described UNIBEN’s Law Faculty as the best in Nigeria.

The excited 10th substantive cerebral Vice-Chancellor of the great citadel of learning (UNIBEN), Prof. Lilian Salami, who is the second female helmsman of the university, after the no-nonsense Prof. Grace Alele-Williams, in her address, stated that the honourees had once again shown a clear testament of their diligence, hard work and commitment to their noble profession.

She said: “To the eminent ambassadors of UNIBEN (the six new SANs) I say, your meritorious preferment into such an exalted position (SAN) is by no means a little achievement. Your sound moral and academic attributes, your doggedness and patriotic spirit are, no doubt some of the indices that distinguished you and earned you the notable recognition.

“We must not forget the roles played by your alma mater in nurturing you, imbibing the right qualities and values in you, in order to make you the best among your peers. We are proud of you.

“We use this occasion to again congratulate another alumnus of UNIBEN, Mr. Olumide Akpata, the President of the Nigerian Bar Association (NBA), on his milestone and well-deserved victory as the first non-SAN President of NBA. Your victory was received with widespread celebration by UNIBEN community. You have indeed added another glorious feather to the university’s cap.

“As we celebrate the six achievers, I am proud to say that UNIBEN, after five decades of existence, is fulfilling the objectives of its founding fathers. The evidence of this abound in the human resources of over 350,000 graduates that the institution has produced to add immense value to the development of Nigeria and the world at large.”

Salami also stated that UNIBEN had grown to be a producer and reservoir of high-quality personnel, positioned strategically to make a change in society.

She assured that UNIBEN would continue to partner its illustrious alumni in all areas that would help galvanise the university into a world-class institution.

The vice-chancellor believed that the years ahead would be glorious for UNIBEN and its products (the alumni) while declaring that by the grace of God, the passion for the alma mater and uncommon commitment, numerous achievements would be recorded.

Minister for Works and Housing Babatunde Raji Fashola, the second SAN of UNIBEN (in 2004), who was the keynote speaker at the special luncheon, stressed that emphasis must always be placed on developing the human capital of the next generation.

Fashola, a former Governor of Lagos State, assured that alumni of UNIBEN, especially of the Law Faculty, were ready to offer their services in any way the authorities of their alma mater felt that they could help while giving a blank cheque to the management of the university.

He said: “It is my humble view that this is a gathering to celebrate many values and virtues that make life really worth living and which are now regrettably not in enough supply. We must always place emphasis on virtues of honour, selflessness, hard work, dedication, commitment, responsibility and good leadership.

“One of the things for which my wife, Abimbola, has been a crusader about, is the need to celebrate the success of others, to honour them, as an inspiration for promoting the common good. We must therefore be, and are all, truly thrilled by this gesture of honour (of the six new SANs).

“Where would we all have been without our teachers? To all those teachers/lecturers, living and dead, serving and retired, I say thank you. I could think of none other as a symbol of our collective gratitude and appreciation of your selflessness than Professor Itsejuwa Esanjumi Sagay, SAN, 80, the pioneer Dean of the Faculty of Law of UNIBEN, who was not alone, but had many good men and women, who shared the burden with him.”

The keynote speaker also stated that without hard work and dedication, success would not be possible, while declaring that for the cause of law and order, no matter how difficult it is, everyone must find the courage to shatter any glass ceiling that stands in their way.

While responding on behalf of the honourees, Ahonaruogho said the special celebration/recognition made them be much taller, thereby expressing gratitude to the authorities of UNIBEN and the eminent personalities in attendance for honouring them, while pledging that they would continue to support the university and its law faculty, as well as promote excellence.



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‘Banking gearing up for major restructuring’

The banking sector is experiencing a paradigm shift with traditional banks facing stiff competition from new entrants into the sector, especially virtual and digital banks. Group Managing Director/CEO of VFD Group Plc, Nonso Okpala says the new entrants will ride on the back of technology to serve the unbanked, and underbanked hardly noticed by commercial banks. Okpala speaks with COLLINS NWEZE on the company’s future, Nigeria’s investment climate this year, ways to resolve the currency remittances hitches, among other things.

 

WHAT do you think is the biggest challenge facing the financial sector?

It is the ability to maintain the new interest rate regime that we are in. If this regime is to be reversed, then it should be in such a controlled manner that allows for stability between the fixed income sector and the capital or higher risk instrument that would exist. I think that if that aspect is not well managed, there would be a run on the capital market in a way that would create panic. I am sure the Central Bank of Nigeria (CBN) is well aware of this process, and they would be able to successfully maintain the low interest regime, for a sustainable period, and if otherwise would occur, they will manage it in a way that would create stability in the economy.

Last year, the naira depreciated due to pressure. What do you really think is the problem with the naira or exchange rate policy?

When you talk about the exchange rate, there are many things that come to play. There is the parallel market, the FMDQ Window rate, the CBN rate and a couple of other rates in between. If you look at the parallel market rate, I do not think that last year has been the worst. In 2017, I think it got to N525 to a dollar. In that year, for all intents and purposes, there was the highest volatility in the naira. I will give a good score to the CBN with respect to the rate management this year.

You know the challenges that we experienced, to all purposes, it would have been worse than this but for the ability of the CBN to deploy necessary policies that allowed for the rate to be managed properly.

How soon are you likely to secure the commercial banking licence from the CBN?

One of our prominent investment intentions is to obtain a commercial banking licence from the Central Bank of Nigeria. We have been on this journey for about two years, and we have kept a deposit of N25 billion with the Central Bank.

Within this year, we would see the completion of that request. That would give us the much-needed basis to develop the ecosystem that would give our group, a strategic edge in the economy. We think there are lots of economies of scale that would play out in various sectors.

Having products and services well integrated under a technological platform, aligns with the needs of the common man in the country. We are of the opinion that if we play very well into such strategy and get it right, we will entrench ourselves in a very good place in this economy.We are poised to do very remarkable things.

What are the most striking aspects of VFD Group operations and reach?

VFD Group is a proprietary investment company with a financial service focus but with ambition to go beyond. We have identified opportunities outside of the financial service industry that will complement our business. In addition, we have an ecosystem strategy that we would deploy that utilises technology greatly.

One of our flagship products is the virtual bank that we launched recently. We also have the VFD Microfinance Bank, and substantial investment in Abbey Mortgage Bank Plc. It’s quite a generational bank in itself and has been able to make a generational transfer of leadership.

We have investments in the real estate sector, currency exchange and remittance businesses, which are vital aspects of our group. We think that with a well integrated financial services sector across Africa and connected to diaspora destinations where lots of Nigerians are resident, we will be able to start resolving some of the currency remittances problem that we have in the continent. We do have a leasing business called, Atiat Leasing. We are working on returning the company to profitability after it declared losses for many years.

Are you aware of the stiff competition in the commercial banking sector? Do you think you have a chance to compete in that market, when the CBN eventually grants the company commercial banking licence?

I think we have a remarkable chance. And I will tell you that the financial services industry, particularly the banking sector, is gearing up for a major restructuring. The restructuring is on the back of technology. There is no doubt about it. The indicators are very clear, and the major players understand it. The more technological enhancement you make to the delivery of your products and services, the better you are well positioned to take on the opportunities that exist.

Permit me to illustrate. Twenty years ago, the Automated Teller Machine (ATM) was literarily not available. Ten years ago, ATM had become the order of the day, running up to today. That is 20 years of technological change, and behavioural adjustments for the customers of the financial services industry. Now look at the IT infrastructure; they have to deploy in 2000 relative to the IT infrastructure they had to deploy. The latter is modular, very inexpensive, relative to what it would have cost you 20 years ago.

So, the reality is that technology has become cheaper, the infrastructure required for banking has been so democratised, and the barrier for entry with respect to that cost has very well reduced.

And so, the question is: How well do you understand the market? How aligned are your systems and processes with the customers? How do you position your bank or your brand to be that of first choice for the industry? Once you can answer these well, then you have the advantage of not having the overhead of the traditional financial institution, but you would have built the same capacity to deliver to the customer. That is a huge shift, which will continue to create opportunity for new entrants and for which we are very well positioned.

Does it mean that the traditional banks will be run over by the new entrants?

It is not to say that traditional banks would be swept off, of course not. I think that business will improve significantly because of the activities of virtual and digital banks like us. We are hoisted on their platform, but we will be able to generate more transaction earnings and achieve better banking of the unbanked and underserved customers in different locations.

Investors are looking at what 2021 would present to them. Which area do you think presents better investment opportunities for investors?

Well, I am usually reluctant to provide free advice because there is no remuneration for it, but there is also a moral burden of advising people to make investments and if it does not go right, you have that burden to carry. But I am also very opportunistic when it comes to selling my products so here goes: I think that one remarkable investment opportunity that exists is investment in VFD Group. We will be offering our shares in February, subject to regulatory approval. And I think that any discerning investors should consider it strongly for investment because we have demonstrated an extraordinary track record of growth and profitability in the last 11 years.

It is a company that would represent a great deal of case study in the future, because our initial share 11 years ago, were sold at N2 per share, and today, we are considering, subject to regulatory approval, to sell those shares for N600. So, by all measures, if you check it, it is a remarkable growth. Even if you check the market share, you will see that VFD Group is one of the most compelling investments in the country today.

Now, you are talking about going to the market this month; how much are you looking at raising?

The board and members of the company had in December approved a capital raise of N13.5 billion. And they gave directors the leeway to combine it via Rights Issuance, Special placements and Debt issuance. So, the entire package of investment opportunity is about N13.5 billion.

What plans do you have for further expansion and where are you going to invest the funds when they are raised?

The plan has always been in line with our 3-5-5 strategic plan, which commenced in 2016. It is to keep orchestrating investment and acquisitions that will create a compelling network of companies with products and services tha will serve as the base of our ecosystem strategy.

I give you a simple example. We want a platform that would provide real estate assets, creatively build those estates, provide mortgages for up-takers to take it, and provide maintenance services to those estates, and also give investors or property owners the opportunity to make secondary exchange of those properties.

We want a situation where individuals who want to buy vehicles are afforded auto loans for those vehicles for companies that we have significant interest in. And those vehicles will be maintained within the structure of those companies that we have investment service and you can even sell it through that same system.

We want to be able to own companies that have the right technological platform to secure homes and loans to customers, who want to buy such homes in a secured way.

We want to build a virtual bank which goes beyond an ordinary bank but will integrate very well with the lifestyle of individuals. We are interested in a company where consumer finance is provided in a way that the customer gets that support when it is required without the bureaucracy of traditional banks, among other things.

What are the products and services that you will deploy to enable your company achieve its 2021 objectives?

I think that it is very clear for our group. Our focus for 2021 is our virtual bank. And we intend to push it as much as possible with the objective of increased adoption. Our target is to achieve two million subscribers and with a deposit liability in excess of N12 billion. Of course we think we can still hit N30 billion in the process as that was the original objective that we had, and we think we are very well disposed towards achieving it.

So, our entire objective will be to deliver on that platform. Once that is done, the first phase of our eco strategy system will be in place, and we think that from then on, it will be easier.

The second aspect is identifying key components that will make up that ecosystem, which will include making investments in companies that complement our current portfolios. We are looking at companies that have technological spread, and ability to muster retail customers services that is very well integrated in the lives of individuals. We are looking at those companies that can easily have 100,000 customers.



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Notore ramps up TAM programme in Q1 2021

Our Reporter

 

Notore Chemical Industries Plc has intensified efforts on its turnaround maintenance (TAM) programme to achieve the capacity of 500,000mtpa and boost profitability from 2021.

The company has fixed March 8, 2021 as the completion date for the exercise, which is expected to significantly increase its  production volumes, revenue, and operating cash flows.

Group Managing Director, Notore Chemical Industries Plc, Mr. Onajite Okoloko, made this known in the company’s unaudited results for the first quarter ended on December 31, 2020.

He also said Notore recorded a revenue of N3.57bn in the first quarter of 2021.

On the status and merits of the TAM programme, Okoloko said, “The programme is expected to be completed by 8 March 2021, barring any further interruptions occasioned by the global COVID-19 pandemic emergency. The TAM is a critical activity required to improve the plant reliability and increase production output to meet and sustain its 500,000MT per annum nameplate design capacity.

“Once completed, we expect significant improvement in the Plant’s reliability and production output to meet and sustain its 500,000MT per annum nameplate design capacity.  Achieving this level of production output will not only lead to significant improvements in the company’s cash flows from operations, but also significant increases in revenues annually post-TAM.”

He added: “Our business has been faced with many challenges over the past years. However, Notore has, indeed, achieved several vital milestones to re-position the company for a great future.  As we look to the future post-TAM, the next phase of Notore’s growth will be focused on diversification, optimisation, and profitability.”

Noting that the company is aggressively pursuing its diversification programme in seed and rice production, he said: “Sale of Notore seeds to farmers has also continued in furtherance of our corporate vision to be a major contributor to the development of Africa.

“Additionally, while leveraging the Company’s seeds business, robust supply chain and distribution network, Notore intends to expand further into other products such as rice production.

“Production of Notore NPK fertiliser has begun to ramp up with major local market introduction achieved during the period under review, which will lead to substantial NPK production and sales this 2021 financial year.”

He continued: “During the dry season, we commenced the pilot program for Notore Rice, an integrated program which saw the successful completion of rice paddy production.This year, we expect to continue the pilot program followed by a test run of over 5,000 bags of high-quality Notore rice in the market this February. It is expected that these additional initiatives will further diversify the company’s revenue stream, boost profitability, and consolidate customers’ loyalty.”

 



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Poultry farmers bemoan high cost of maize

By Daniel Essiet

 

The Chairman, Poultry Association of Nigeria (PAN), Akwa  Ibom  State, Mr Solomon Ekong  has said  the sector  is facing serious crisis aggravated  the distress of maize farmers, who are producing  enough for the industry.

According to him,  the  poultry industry was in the grip of a severe crisis due to an unprecedented and unreasonable increase in the price of maize, which is the most crucial ingredient of poultry feed and accounts for more than 80 per cent of the cost of production of eggs and broilers.

He urged the government to facilitate the poultry industry and support cultivation of  maize, being used raw material for the feed industry.

He said the cost of production of chicken and eggs is higher and that they  sell poultry at much below the production cost as compared to the prevailing international prices.

He said poultry farmers must also be involved in maize production, adding that this would  help to stabilise prices of staple foods.

Read Also: ‘I sold 6,000 dead poultry meat for five years’

In most parts of the country, production is undergoing normal seasonal declines.

The recent shortfall in maize production in Nigeria has pushed policymakers to search for viable alternatives. Most of the grains produced locally are consumed in various commercial sectors. About 50 p per cent of the maize produced is used as animal feed, with the poultry industry claiming the bulk of the country’s total feed production.

Last year,  the  Central Bank of Nigeria (CBN) granted import waivers to four agro-processing firms to import 262,000 tonnes of maize to bridge the shortfall in production and augment local production.

Before the importation, the Federal Government through President Muhammadu Buhari had approved the release of 30,000 tonnes of maize from the National Strategic Grain Reserve to support the PAN at a subsidised rate.

The volume of maize imported by the four firms was over half of the yearly maize imports of 400,000 tonnes.

The Food and Agriculture Organisation (FAO) has estimated that Nigeria’s maize production for last year would be about 11.1 million tonnes, saying that importers were expected to import 400,000 tonnes to plug the production shortfall.

 



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Vitafoam nets N1.11b in Q1

Our Reporter

 

Vitafoam Nigeria Plc recorded net profit after tax of N1.11 billion in the first three months of this financial year as the bedding and furniture group showed sustained improvements across key performance indicators.

Interim report and accounts of Vitafoam for the three-month ended December 31, 2020 showed that group turnover rose from N5.98 billion by third quarter 2019 to N8.66 billion by third quarter 2020. Profit before tax increased from N1.17 billion to N1.52 billion. Profit after tax rose from N819.67 million in December 2019 to N1.11 billion in December 2020. With these, earnings per share improved from 62 kobo in first quarter of the previous financial year to 80 kobo in the current business year.

Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi told The Nation that the performance of the group underscored strategic initiatives being taken by the company.

According to him, the performance in recent period was not by accident as every performance demands that a lot of work has gone behind it.

“Our pride as shown by our financial results for the year 2020 is the fact that we never rested on our oars; we are resilient. We had also decided not to give-in to excuses of what was going on in the country because if you look at it, you will realise 2020 was one year belaboured with a lot of activities that had negative impact on economy and businesses. It started with COVID-19 shock. Just within that same period, we had #ENDSARS protests and before you knew what was going on, the nation was on lockdown and the year 2020 closed. Even at that, Vitafoam has been able to weather the storm by coming out with the impressive financial results for the year 2020,” Adeniyi said.

He said the leadership of the group is structured in such a way to know when the company should move; know when to act, to know the decision to take at the right time without delay.

The first quarter results continued the positive outlook for the bedding and furniture group, which increased cash payouts by 64.5 per cent after net profit rose by 72 per cent in 2020.

Read Also: NSE upgrades Vitafoam to medium-priced stock

Vitafoam had recorded well-rounded profitability with modest sales growth, despite the adverse impact of COVID-19 pandemic. Audited report and accounts of Vitafoam Nigeria for the business year ended September 30, 2020 showed that turnover rose by 5.2 per cent from N22.28 billion in 2019 to N23.44 billion in 2020. Cost of sales dropped by 8.1 per cent from N13.52 billion to N12.43 billion. Gross profit thus rose by 25.7 per cent from N8.76 billion to N11.01 billion. Administrative and marketing expenses increased by 10 per cent to N5.18 billion in 2020 as against N4.71 billion in 2019. Non-core business income rose by 52 per cent from N491 million to N745 million. Interest expenses reduced by 11.4 per cent from N1.05 billion to N930 million.

With these, profit before tax rose by 61.5 per cent from N3.5 billion to N5.6 billion. After taxes, net profit also jumped by 72 per cent from N2.39 billion to N4.11 billion. Basic earnings per share thus increased from N1.82 to N3.05. Net assets per share rode on the back of high retained earnings to N7.25 in 2020, 54.3 per cent above N4.70 recorded in 2019.

With the expansive growth in the bottom-line, the board of the company recommended distribution of N979.4 million as cash dividends for 2020, 64.5 per cent above N595.4 million paid for the 2019 business year. This implied a dividend per share of 70 kobo for 2020 as against 42 kobo paid in 2019.

Underlying ratios showed similar positive outlook. Gross profit margin increased from 39.3 per cent to 47 per cent. Pre-tax profit margin- which measures average profit per unit of sales and serves as a major indicator of profitability, leapt to 24.1 per cent in 2020 as against 15.7 per cent in 2019. Return on total assets improved from 25.3 per cent to 26.1 per cent.

Return on equity also increased from 40 per cent to 45.4 per cent. Even with the increase in dividend payout, the sustainability improved with a dividend cover of 4.36 times in 2020 as against 4.33 times in 2019.

 

 



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NCC remits N144.312b spectrum fees to Fed Govt

By Lucas Ajanaku

 

The Nigerian Communications Commission (NCC) has so far remitted N144.312billion spectrum fees to the consolidated revenue fund (CRF) of the Federal Government over the last seven years, according to a document obtained at the weekend.

Over the same period, over $2billion in foreign Direct Investment (FDI) and over N800billion in domestic investment came into the country.

The document quoted the Executive Vice Chairman of the NCC, Prof Garba Danbatta as urging the National Assembly to pass the Critical National Infrastructure (CNI) Bill that will classify telecommunications infrastructure across the country as critical national assets. “This will improve the security of the infrastructure. Construction of roads with fibre optic ducts pre-laid will also reduce incidence of vandalism and theft,” Danbatta said.

He identified multiple taxation and regulation, Right of Way (RoW) issues, erratic power supply, damage to telecommunications infrastructure during road construction, willful vandalism of telecoms infrastructure, insecurity, stealing of fuel, batteries and inverters at Base Transceiver Stations (BTS).

“Multiple taxation and regulation have been major challenges bedeviling the industry. It has affected the deployment of infrastructure and the expansion of telecommunication services. However, the Commission is engaging with relevant authorities to harmonise these taxes and regulations,” he said, adding that improvement of power supply to the sites of telecommunications services providers will have the dual effect of reducing operating costs and improving quality of service (QoS) delivery.

He said the high RoW charges across various states of the federation have negatively impacted the required expansion and rollout of fiber optic across the country. Harmonisation of RoW charges will increase investment and expansion of critical transmission infrastructure.

Read Also: How to sync corporate SIMs with NIN, by NCC

According to him, the engagement of the Minister of Communication and Digital Economy, Dr Isa Pantami with the Nigeria Governors’ Forum (NGF) has however led to the adoption of a maximum of N145/m RoW fees in Kaduna, Katsina, Imo, Ekiti, Kwara and Plateau states.

He said one of the key objectives of the Commission as enunciated in the NCA 2003 is to promote and safeguard national interests, safety and security.

Therefore, the Commission is facilitating the provision of industry field data to Law Enforcement Agencies (LEAs) on quarterly basis, to aid geo-location capabilities and investigations of telecoms related activities.

It is also collaborating with National Identity Management Commission (NIMC) on integration of subscriber identity module (SIM) Registration with its database. “To this end, we’ve issued direction on suspension of SIM registration in December, 2020,” he said, adding that it is also providing porting statistics from the Mobile Number Portability (MNP) management records via the MNOs Clearing House.

“The Commission has positioned itself in Government drive for a digital Nigeria, as contained in the Nigerian National Broadband Plan (2020 – 2025), the National Digital Economy Policy and Strategy (2020–2030) and the Strategic Management Plan (2020– 2024) of the Commission. This is in recognition of the tremendous economic growth opportunities afforded by the deployment of broadband and its associated technologies

“The Commission will continue to put in its best in the discharge of its mandates, especially in facilitating the deployment of broadband, which is central to diversifying the Nigerian economy and national development.

“Also, it is our belief that the communications industry, under the leadership of the Ministry of Communications and Digital Economy, will experience more quantum leaps and retain its current leadership role in the telecommunications space,” Danbatta said.

 



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Transcorp Hotels posts N9b loss

Our Reporter

 

Transcorp Hotels Plc suffered major decline last year as COVID-19 pandemic and economic disruptions impacted the operations of the hospitality and tourism group.

Interim report and accounts of the group for the year ended December 31, 2020 released at the weekend showed that total sales halved from N20.41 billion in 2019 to N10.15 billion in 2020. The group recorded pre-tax loss of N8.93 billion in 2020 as against profit of N1.12 billion in 2019. After taxes, net loss stood at N8.98 billion in 2020 compared net profit of N614 million in 2019.

Shareholders of Transcorp Hotels had last month concluded recapitalisation of the hotel and leisure group with the injection of N9.93 billion in new equity funds.

Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels Calabar, had in fourth quarter 2020 sought to raise N10 billion through the issuance of 2.66 billion ordinary shares of 50 kobo each at N3.76 per share to prequalified shareholders. The rights were pre-allotted to existing shareholders on the basis of seven new ordinary shares for every 20 ordinary shares of 50 kobo each held as at Monday, July 13, 2020.

Official listing report showed that the rights issue recorded a subscription level of 99.34 per cent with shareholders accepting 2.642 billion ordinary shares of 50 kobo each at N3.76 per share. The newly issued shares were listed last month at the Nigerian Stock Exchange (NSE).

Read Also: Transcorp power pays N26.25b for Afam power

With the listing of more 2.642 billion ordinary shares, the total issued and fully paid up shares of Transcorp Hotels increased from 7.60 billion to 10.24 billion ordinary shares of 50 kobo each.

Managing Director, Transcorp Hotels Plc, Mrs. Dupe Olusola, said: “We are not resting on our oars but working round the clock to innovate new products and services to further delight our guests, notable of such is the launch of asset-light strategies to deepen our hospitality footprints across Africa,” Olusola said.

She added that while the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit, Transcorp Hotels is optimistic about a great recovery for the sector.

She noted that shareholders’ approval for new capital raising showed that shareholders have confidence in the future of the company, assuring that the company will continue to play their part in ensuring a significant recovery to the Nigerian hospitality industry.

Transcorp Hotels is the hospitality subsidiary of Transnational Corporation of Nigeria Plc. It owns and operates Transcorp Hilton Abuja, which provides luxury accommodation, excellent cuisine, conferencing and leisure facilities to business travellers and tourists from all over the world. The company also holds 100 per cent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotels in Calabar.

 

 



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Ecobank Group’s total assets rise to N10.2tr

Our Reporter

 

ECOBANK Transnational Incorporated (Ecobank Group) Plc witnessed improvements in its balance sheet in 2020 as increased market share and expanded funding lifted total balance sheet size to N10.27 trillion.

Unaudited report and accounts of Ecobank Group for the year ended December 31, 2020 released at the weekend showed that total assets rose from N8.62 trillion in 2019 to N10.27 trillion in 2020. Customers’ deposits had increased from N5.92 trillion to N7.30 trillion.

The group increased loans to customers from N3.38 trillion to N3.7 trillion. Total equity funds also rose from N687.74 billion in 2019 to N805.11 billion.

The report showed that the group recorded a revenue of over N630 billion, representing seven per cent growth on N586.9 billion posted in 2019. However, despite the bank’s good showing in deposits from customers and revenue, profits were impacted by the provisioning for goodwill for the acquisition of Oceanic Bank in 2011.

Read Also: AfCFTA: Ecobank positioned for seamless payments

Consequently, the bank ended with profit after tax of N35.9 billion while profit before tax and goodwill impairment closed at N126.4 billion.

The Ecobank Group stated that it was optimistic that with clean book in the aftermath of the full provisioning for Oceanic Bank, it will improve on its profitability in 2021 and other years ahead.

 



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CAP grew turnover to N8.74b in 2020

Our Reporter

 

Chemical and Allied Products (CAP) Plc grew top-line earnings to N8.74 billion in 2020 despite the impact of the  coronavirus (COVID-19) pandemic, which resulted in losing nearly two months of activities during the year.

The unaudited report and accounts of CAP for the year ended December 31, 2020 released at the weekend showed that sales rose by 3.9 per cent from N8.41 billion in 2019 to N8.74 billion in 2020. Higher cost of sales and decline in other incomes however impacted the bottom-line. Gross profit stood at N3.76 billion in 2020 as against N3.97 billion in 2019. Profit before tax dropped from N2.55 billion to N1.90 billion while profit after tax closed 2020 at N1.29 billion as against N1.74 billion recorded in 2019. Earnings per share stood at N1.84 in 2020 compared with N2.49 in 2019.

Underlying balance sheet ratios showed that the leading paints and decorative company remained strong with quick ratio, which measures gearing level stood at 1.2 times. Current ratio, which measures liquidity, closed 2020 at 1.4 times. Cash and cash equivalents had risen by 35 per cent from N4.32 billion in 2019 to N5.82 billion in 2020.

Managing Director, Chemical and Allied Products (CAP) Plc, David Wright said the top-line performance was encouraging despite the COVID-19 lockdown in the second quarter of 2020 and protests in the fourth quarter of 2020, which effectively led to loss of seven weeks of sales.

“We are encouraged by the growth in revenue which has been solely driven by underlying volume growth in line with our strategy. Alongside the rest of the world, we experienced supply chain disruptions which impacted our raw material sourcing and resulted in input costs pressures. We have embarked on initiatives focused on mitigating these disruptions and expect to see positive results in 2021,” Wright said.

Read Also:  Troops capture three bandits, rescue victims in Kaduna

He said the merger between CAP and Portland Paints and Products Nigeria Plc, which was announced in the fourth quarter of last year, would be concluded in the first quarter of 2021.

He noted that the companies have received preliminary regulatory approvals and an order from the Federal High Court to hold a court-ordered meeting for shareholders to consider and approve the merger, prior to obtaining final regulatory approvals.

He attributed the decline in the bottom-line to higher input costs on account of supply chain disruptions, which resulted in scarcity of premium raw materials and a 42.6 per cent reduction in net finance income given lower treasury yields compared to prior year.

He pointed out that despite the disruptions in 2020, the company remained focused on its growth plan by investing in talent to strengthen the work force and drive future profitable growth, all which temporarily impacted the bottom-line.

He assured that the company’s strong cash position of some N5.8 billion will be deployed towards growth initiatives.

CAP manufactures and sells premium and standard paints and coatings with globally recognised brands such as Dulux and Caplux. It is the sole technological licensee of Akzo Nobel Coatings International B.V. in Nigeria. CAP pioneered the colour centre concept in Nigeria in 2005, which resulted in the evolution of the Nigerian paint industry. Today, CAP has 76 colour centres and colour shops across 31 states.

 



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Irish firm to provide dollar-based funding for Nigeria

By Taofik Salako, Deputy Group Business Editor

 

Restorium Capital Limited, an investment banking and project development firm based in Dublin, Ireland, has launched its high-impact finance, opening new window for direct dollar-funding to governments and companies.

Its Managing Director, Mrs Omotayo Adeola, said the company has enormous potential to support companies and governments with huge dollar-based funding and could provide as much as $1 billion to any public-private partnership deal.

At a virtual press conference to announce the commencement of operations in Nigeria at the weekend,  Adeola said the company decided to choose Nigeria as its first country of operations in Africa because of its belief in the economy and its potential, noting that the company’s next expansion will be to Ghana by the second or third quarter of the year.

According to her, the company will expand gradually across the Anglophone African countries and subsequently spread to Francophone African countries because of its passion for African development as a company of African origin.

She explained that the company’s financing capacity cuts across the whole gamut of the economy while it provides specialised services across several functions including financial advisory, project financing, capital raising and structured trade finance services, among others.

Adeola said while the company, as a wholesale financier, has a minimum level of funding deal it engages in, specific project will determine the maximum funding requirement as the company has a global network of partners that are ready to provide funding for any viable project.

Under its humanitarian funding for projects that helps humanity including social housing, agric business, renewable energy and waste to wealth among others, the company can provide funding from $5 million to $500 million.

Under its debt funding for private companies and private-public partnership projects, the company can provide straight loan against interest from $20 million and above. For private equity funding, the deal size starts from $15 million.

Also, the company provides stock loan funding for publicly traded stocks on the Nigerian Stock Exchange (NSE), such stocks must have minimum daily trading volume of $250,000. Minimum loan size for stock loan funding is $1 million with no ceiling.

Adeola outlined that Restorium Capital was set up to assist prospecting businesses, governments and corporate institutions to achieve their enormous potentials, by linking them with various developmental and investment funds out in Europe, America, Asia and worldwide.

She said the company seeks to positively impact the African economies by providing the needed investments required to jumpstart various fields of endeavours, including providing the much-needed structured trade finance services to african businesses by making available dollar-based trade finance instruments such as letters of credit, standby letters of credit, bank guarantees, performance bonds, advance payment guarantees, proof of fund and other swift services from its network of more than 50 banks and financial institutions without needing to provide a collateral or substantial amount of capital.

“Currently, Nigerian manufacturers and importers require 100 per cent cash cover in their bank accounts before letters of credit (LCs) can be opened for their imports by their banks, but with us now LCs can be opened without needing to provide a collateral or substantial amount of capital, thereby providing additional source of funding for businesses which can use the cash that would have been used as collateral for working capital needs until the goods are being delivered,” Adeola.

She added that the company also provides project and business financing services to private and public companies including pubic private partnerships (PPP), through debt, equity, mezzanine or a mix of funding solutions including the refinancing of existing loans, purchase of existing facilities and restructuring.

On the risk outlook for Nigeria, Adeola described Nigeria as a diamond in the rough with enormous potential, noting that there are inherent country risks, Nigeria provides great opportunity for businesses which are discernible enough to identify and manage the risks.

She said Restorium Capital will provide great relief to Nigerian economy at at time that the COVID-19 pandemic has worsened economic performance and manufacturers and trade importers are facing difficulties in sourcing foreign exchange (forex) and opening of letter of credit for the importation of much needed raw materials and finished goods.

She pointed out that global rating agency , Moody’s, has issued fresh warnings that banks are facing foreign currency Liquidity pressures of the type seen during the 2016 to 2017 recession due to current low oil prices, volatile foreign inflows and lower remittances in the face of coronavirus pandemic.

She said Restorium Capital also decided on project financing because Africa is in dire need of funding for businesses and Infrastructural developments.

African Development Bank (AfDB) estimates that Africa’s infrastructure needs are between $130 and $170 billion per year; however, financing for African infrastructure falls short by between $68 billion and $108 billion  yearly.

According to the IMF, Nigeria’s infrastructure stock of 25 per cent of Gross Domestic Products (GDP) remains far below the 70 per cent international benchmark.

Minister of Finance, Budget and National Planning Mrs Zainab Ahmed has estimated that the country needs about N36 trillion yearly for the next 30 years to solve its infrastructure problem. Nigeria’s funding gap for federal infrastructure alone amounts to $3.6 billion  yearly, or about three per cent of GDP.

She explained that banks, due to  rules and constraints, have limited capacity to meet large-scale wholesale funding, especially denominated in foreign currency, as the implementation of the Basel III capital requirements requires banks to hold higher capital reserves against losses and banking regulations that require banks’ lending to be fully collateralised have made project and infrastructural funding unattractive to the banking sector.

She added that project finance is, especially attractive to the private sector, because companies can fund major projects off-balance sheet noting that Restorium Capital currently work with Alliance Partners that are providing equity and debt financing for corporates from $20 million and above and PPP projects from $100 million and above.

 



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