Revenue Leak: N4.1tn Hole in Government’s Purse – FAAC
Nigeria is grappling with a massive revenue haemorrhage as government agencies fail to remit billions of naira to the Federation Account. The Federation Accounts Allocation Committee (FAAC) has revealed a staggering N4.1 trillion in unremitted funds as of June 2024, despite efforts to reconcile and recover outstanding debts. The Nigerian National Petroleum Company Limited (NNPC) remains the primary culprit, owing a colossal N940.62 billion. Other significant defaulters include the Nigerian Upstream Petroleum Regulatory Commission, Federal Inland Revenue Service (FIRS), and the Central Bank of Nigeria (CBN). The situation has worsened compared to May 2024, when the unremitted amount stood at N3 trillion. This alarming trend has severe implications for the nation’s economy. The missing funds represent a substantial portion of the government’s revenue, crucial for funding essential public services like education, healthcare, and infrastructure. The persistent failure to remit these funds undermines the government’s capacity to meet its obligations and hampers development efforts. Experts warn that if the situation is not urgently addressed, it could lead to a deeper fiscal crisis. There is a pressing need for stricter accountability measures and penalties for non-compliance. Additionally, strengthening the revenue collection system and improving transparency are essential to curb this alarming trend and ensure that public funds are utilized effectively for the benefit of the nation. The FAAC has initiated reconciliation efforts with the delinquent agencies, but progress has been slow. As the nation grapples with economic challenges, the recovery of these funds becomes increasingly crucial.
FCCPC Approach Suggests Targeted, Predatory Investigations against Foreign and Big Companies
Following the recent press releases by the Federal Competition and Consumer Protection Commission (FCCPC), especially the fines of US $200 million against WhatsApp and its parent company Meta, and the report on Coca-Cola and Nigerian Bottling Company regarding product labelling, this analysis provides context, background, and asks whether FCCPC is targeting big and foreign companies and acting in a manner that suggests its investigations are predatory. The Federal Competition and Consumer Protection Commission (FCCPC), Nigeria’s antitrust watchdog has made three major announcements/conclusions in the last year: Both BAT and WhatsApp were fined for antitrust practices using their market dominance and the same allegations are levelled against Coca-Cola. In addition to the fine against BAT for abuse of market dominance and infringement of public health regulations, the FCCPC said the maker of Lucky Strike and Dunhill cigarettes had also penalised retailers for providing equal platforms for its competitors’ products. The fine was the first levelled by FCCPC and the highest ever levied by Nigeria for antitrust violations. The same pattern has emerged in relation to WhatsApp and Coca-Cola, though based on different reasons. WhatsApp investigations were triggered on the back of its May 2021 updated privacy policy while Coca-Cola was based on a change in the formulation and resultant labelling of its Coke product. In the case of WhatsApp, the company has been given 60 days from the day of the release of the conclusion to pay US $220 million (though it appears the company is heading to the courts) while such a conclusion has not been reached in the case of Coca-Cola. BAT and Coca-Cola investigations started within a year of establishing the FCCPA, while WhatsApp investigations started in 2021. The Coca-Cola investigations started in June 2019, following the Act in February of this same year, while the investigations into BAT were opened in August 2020. Indeed, the FCCPC initiated an investigation into BAT and affiliated companies in August 2020 and obtained a federal court order in January 2021 to search multiple BAT sites and those of service providers for evidence used in forensic analysis. It added that additional investigation and analysis of evidence established multiple violations of competition laws. The FCCPC will monitor BAT for 24 months to ensure appropriate behaviour and business practices consistent with prevailing competition laws and tobacco control efforts, the watchdog said. In the case of Coca-Cola, it said it obtained vast materials from the company. In WhatsApp’s case, it followed the publication of its new privacy policy in May 2021. Public responses were largely positive following the BAT announcement in December 2023, while public responses appear muted in the case of WhatsApp and Coca-Cola in the midst of worsening economic conditions. Following the historical fine on British American Tobacco and its alliances by the Federal Competition and Consumer Protection Commission (FCCPC), the public response focused on the following: However, the responses to the fine on WhatsApp and the report on Coca-Cola has not attracted the same level of public attention. Also, unlike the BAT case, WhatsApp has appealed the decision. These conclusions have three major things in common. Given that the agency started operations in 2019, the conclusions provide an emerging pattern: This report looks at the gaps in the motivation and processes that led to these conclusions. This report shows that the agency appears to have targeted the companies, and by inference, wants to stamp its authority on the competition space in the country, with respect to the scale of the fines. However, this approach, while capable of flaunting short-term victories, has the potential for long-term injurious implications for investment, growth, and jobs in the country: This report thus looks at the regulatory and fiscal dimensions of the work of FCCPC as it relates to the fines on BAT and WhatsApp, and seeks to make three important points. First, it appears there is a misalignment between the regulatory and fiscal powers of FCCPC to the extent that there is a huge incentive for the agency to pursue big businesses because they can pay huge fines. Second, and following from the first is that the fiscal incentives in the regulatory powers of FCCPC will mean the pursuit of only big and perhaps foreign businesses, and not a systematic pursuit and correction of uncompetitive business environment in Nigeria. Third, it appears that the FCCPC action was predatory. The FCCPC was established in 2019, but the same year, it “became aware” of changes to Coca-Cola formulation, by August 2020, it commenced investigations against BAT. In the BAT case, there is evidence to suggest that the materials for the investigations were collated before the establishment of the FCCPC Competitiveness, Fiscal Policy, and Incentives The 2019 Act setting up FCCPC was a landmark establishment of an antitrust and competition agency in Nigeria. In 2019, President Muahammadu Buhari signed into law the Federal Competition and Consumer Protection Act, thereby creating the agency. The agency’s purpose is to develop and promote fair, efficient, and competitive markets in the Nigerian economy and to also facilitate access by all citizens to safe products and secure the protection of rights for all consumers in Nigeria. FCCPC was modelled after the South African Competition Act. It is widely accepted that the Act establishing the FCCPC on 30 January 2019 was a landmark, replacing the ineffective Consumer Protection Council (CPC). The Act was largely modelled after the South African Competition Act. It established two institutions for the purpose of enforcing its provisions. These are the FCCPC and the Consumer Protection Tribunal (CPT). The key function of these agencies is to eliminate monopolies and prevent or curtail the abuse of dominant market positions. In addition to repealing the CPC, the FCCPA also repealed the Investment and Securities Act (ISA) 2007, which empowered the Securities and Exchange Commission (SEC) to approve mergers and acquisitions. While the South African competition regime is regarded as a model of competition for developing countries, it is also seen as a vehicle for the attainment of national economic and social objectives. The overriding legislation of FCCPA. Sections of the Act establishing the FCCPC give it overriding powers over existing legislation in relation to competition and consumer protection. It thus means that the FCCPC has precedence over any other specific laws in those areas. Though sections 47 (2) and 105 (6) ( c ) acknowledge the leadership position of the FCCPC, there is a role for negotiable agreement with other relevant agencies. Antitrust agencies have become critical and powerful in moderating competition in
First Bank of Nigeria appointed Olusegun Alebiosu as its sixth managing director /CEO in this century.
Two months ago, Nigeria’s oldest lender, First Bank of Nigeria appointed Olusegun Alebiosu as its sixth managing director /CEO in this century. In this analysis, Proshare X-rays what the Risk background of the new CEO means for the Bank. The analysis projects the future and outlook for the bank by piecing together the thread of the bank’s leadership this century. In this review of First Bank’s (FBN) leadership Journey: A Shift that Shapes the Future, Building on Achievements and Lessons of the Last Decade; we addressed the following: 1. Preamble – Leadership Restructuring and Lessons of the Last Decade. • First Bank’s 130years of Stewardship Leadership • First Bank’s CEO Parade: Learning Along a Rising Curve. • In the lens of the industry: of Tier 1 Banks and the Future. • The Leadership Changes: The New Board and its Character. 2. Alebiosu – A Risk-General at the Helm. • Building the Future by Looking Back – Of Leadership and Succession. • First Bank’s Alebiosu: The Making of a Risk General. • Repairing Risk – The Art of the Deal. 3. When a Board Seeks Sustainability and Consistency. • When Succession Planning Matters: The First Bank Odyssey. • Keeping the Bank Agile: The Art of Sustainability. 4. Closing Thoughts. First Bank’s 130 years of Stewardship Leadership Corporate longevity signposts resilience: it does not presume a magical ability to avoid operational storms. However, it does highlight the ability to wade through occasional business turbulence and come out alive and well. Many great global companies over a hundred years old know the drill. They embrace easy and hard times with equal commitment to long-term sustainability. After 130 years in business, First Bank of Nigeria (FBN) has become a sort of national marquee symbolising the twists and turns of Nigeria’s economic fortunes. Running a financial institution over a century old is in itself a gold standard; so FirstBank stands in a class all by its own; and so must be those who have held the responsibility of running such an institution. In his book ‘The Living Company’, former Shell Royal Dutch Petroleum Company executive and 38-year Shell veteran Arie De Geus noted that ‘The natural average lifespan of a corporation should be as long as two or three centuries’. He argued that the dichotomy between profitability and longevity was a myth. As far as De Gues was concerned, profitable companies should be long lived. But he notes that there is a caveat. The endemic focus of managers on the bottom line to the detriment of the human community that makes up the organisation could be a self-inflicted bullet to the head. The research done by De Geus and his team at Shell/ Royal Dutch Petroleum Company explains why Niger ian companies like Fi rst Bank succeeded and struggled in seasons and under different managements. De Geus and colleagues identified four key characteristics of companies as old as the 130-year-old First Bank of Nigeria. The characteristics were: · Environmental Sensitivity and Cohesion; · Sense of Identity; · Tolerance; and · Conservativeness in Financing. In First Bank’s corporate sojourn, these characteristics have evolved in different shades under separate Chief Executive Officers (CEOs). We attempt a brief interrogation below. First Bank’s CEO Parade: Learning Along a Rising Performance Curve FBN’s leadership parade has seen some exceptional group of managers and directors with several inspirational products, and others that formed part of their learning and development as an institution. The 130-year-old bank has gone through cycles of resilience turned into islands of achievements and in some cases, oasis of reflections. More recently, the bank has seen a steady and firm resurgence of its operating strength with a lower Cost to Income ratio (CIR), shrinking Non-Performing Loan ratio (NPL), and smaller Cost of Risk (CoR). Admittedly, this has not been without ‘legacy’ corporate governance hiccups, but the uncharacteristic disruptions have been handled professionally and maturely, in the main. (see Illustration 1) Illustration 1: FBN, which represents 95% of FBNH’s asset size since it transitioned to a Holdco structure, has had five CEOs with different management styles over the last two decades, starting with Bernard Longe’s aspirational administration, Moyo Ajekigbe’s conservative and minimalist approach, Sanusi Lamido Sanusi’s risk focused approach, Bisi Onasanya’s proactive and aggressive administration, and finally, Adesola Adeduntan’s repair, rework and re-growth strategy. By the end of the Adeduntan’s era, the bank has shown a significant recovery from the previous high cost to-income ratio (CIR), low capital adequacy ratio (CAR), and bloated non-performing loans (NPLs), which enabled him to restore the Bank’s international credit rating to the same level as those of the other members of FUGAZ and Nigeria. Furthermore, the ROE and market capitalization of the Bank reached unprecedented levels that have never been achieved before. As of FY 2023, the Group’s CIR and NPL ratios declined significantly and compared favourably with regulatory expectations and industry benchmarks under the Adeduntan-led management. The Bank, during this period, pioneered agency banking and achieved strong growth with over 230,000 agents, making it the largest bank-led agency banking franchise in Nigeria and Sub-Sahara Africa (SSA), with significant growth in the contribution of the international subsidiaries to profit (~30%) that signposts the arrival of the Bank as a truly ‘multinational company’, exponential growth in market capitalization (>10X) and customer counts (4X), and a significant drop in NPL exposure with NPLs at 5% from a high of 30%. Furthermore, the Adeduntan era would be remembered for successfully pushing the bank’s digital agenda with the launching of the Digital Innovation Laboratory and Technology Academy (the first in the industry), execution of the various digital banking initiatives that resulted in over 23 million customers being onboarded on the Bank’s digital platforms that ensured that over 90% of the customers initiated transactions are now being conducted on those digital platforms which are fondly referred to internally within the bank as ‘Brick and Click’ banking. This period also saw the design and launching of ‘FirstDirect’, an integrated cash management and trade finance solution/platform that has digitized the banking interface between the Bank
President Tinubu is tying Cardoso’s hands over macroeconomic stability
On Wednesday 31st of July, as many Nigerians were making plans either to be part of the nationwide protests scheduled for the next day or watch proceedings online, the National Assembly hurriedly amended the Central Bank of Nigeria Act 2007. The lawmakers passed a bill to amend Section 38 of the CBN Act, raising the allowance for federal government borrowings from the Central Bank of Nigeria to 10%, from the previous threshold of 5%. Known as ways as means, the process is supposed to serve as an emergency form of funding for the government, limited to 5% of the previous year’s actual revenue, so as not to threaten the macroeconomic stability required for growth and jobs. However, since the bastardization of the process by President Muhammadu Buhari, the Tinubu government has now legislated what was an illegal practice under the former President. In the presentation of the bill, Senate Leader Opeyemi Bamidele touted three reasons for the increase. First, the bill will help finance budget deficits. Second, the loans will support essential government expenditures, stabilize the financial markets by preventing government default, and stimulate economic activity by creating jobs. Third, the increase will allow the government to support critical sectors such as agriculture and healthcare and provide infrastructure development while reducing borrowing costs by offering cheaper funds than traditional methods. There are many dimensions to this. I will focus on two. First, the process. While this measure had been mooted before, the timing and speed of passing the bill shows legislative recklessness. From widely available reports, the opposition to the bill was more than those in favour of it, but it still passed. For all intent and purposes, the current National Assembly is not pretending to surpass the pedestrian approach to legislative matters by the last session and continues to exhibit a joyous admission that it is prepared to pass any bill presented to it by the executive. It is no wonder that the National Assembly is not contended with the callousness of a voice vote in 2024 but also passed such a significant with such speed. To their credit, the National Assembly is attempting to legitimize the gross illegality under President Muhammadu Buhari. As data from Dataphyte shows, the ways and means under President Buhari were between 37.2% in 2017 and 138% in 2021. In addition, contrary to the stipulation of the Act, the ways and means were secretive, and the repayment was only securitized to be paid over 40 years at the administration’s twilight. That brings me to the second dimension of it. Contrary to what the legislators that supported this bill think, the rise in the borrowing allowance from the central bank will not only not solve the problem, but it is also tying the hand of the Central Bank governor in his efforts to stabilize the Naira and prices. I wonder who is going to tell our lawmakers that the reason we are in this mess is because the federal government is not disciplined about its finances. Who is going to tell President Tinubu that the raise is for deficit expenditure because the budget was optimistic and unrealistic in the first place? Who is going to tell President Tinubu that deficits can also be addressed by cutting costs and not raising revenues by printing money that generates greater levels of macroeconomic instability? Who is going to tell President Tinubu that Nigerians don’t believe his economic policies anymore because he is quick to expand government expenditures on the pleasures of government officials but very slow in implementing policies that cut government costs such as the Oronsanye report? In conclusion, the reason Ways and Means is called inflation tax is not just because it causes unsustainable levels of inflation as we have now, it’s also because it enriches the federal government at the expense of the State governments, the private sector, and the citizens. In addition, its effects on price instability are what destroy the economy’s ability to grow and create jobs. It is the effects of inflation that lead to capital flight and increases in interest rates for investors and manufacturers. It is the government borrowings’ effect on prices and instability that continues to drive the Naira’s instability. Who is going to tell President Tinubu that when you are in a crisis, you stop digging? And by extension, you don’t tie the hands of your central bank governor who is been held responsible for stabilizing the economy, but the root cause is unsustainable fiscal practices such as the federal government continuously spending monies it has not earned.
Building Generational Wealth in Africa: The Legacy Haus Story
Olufunke Olumide is the Managing Partner of The Legacy Haus, a first-of-its-kind multifamily office focused on Africa. The Legacy Haus helps African families build wealth that lasts for generations and preserve their legacies. They go beyond just managing money by offering a wide range of services, including legal and financial advice, as well as help with personal affairs. Their goal is to change the way Africans think about wealth by helping them not only build it but also pass it down to future generations while keeping the family’s values strong. Olumide has over ten years of experience in advising businesses and families on how to structure themselves and manage their wealth. She is an expert in helping families transfer wealth and businesses to the next generation while making sure everything is run well and ethically. One of her biggest accomplishments is creating a system to smoothly transfer wealth and family traditions to future generations. She has also been instrumental in growing The Legacy Haus’s client base across three continents in just a year and a half. The Legacy Haus wants to be a major player in the African family office industry, and they have a plan to get there. They aim to capture a significant portion of the Nigerian market by 2026. To do this, they plan to expand to more cities and offer services to not just the super-wealthy but also to those who are on their way to becoming very wealthy. They want to partner with these families to help them achieve their financial goals and build a lasting legacy. The Legacy Haus is different because they act as a central control center for everything a family needs, from planning their children’s education to managing their investments and even paying their bills. They focus on more than just finances; they consider the whole picture to make sure families’ wealth lasts for generations. This is a unique area of the professional services world, and The Legacy Haus stands out by offering a wide range of services across many different industries. They combine long-term planning with everyday support to handle every aspect of their clients’ lives. One of the challenges The Legacy Haus faces is that many people in Africa, especially Nigeria, are not familiar with the concept of a family office. They need to educate the market about the benefits of using a family office. Another challenge is finding highly skilled people to work for them because they need expertise in many different areas. There is also some mistrust of financial advisors in Nigeria, so some people are hesitant to use their services. Despite these challenges, The Legacy Haus is seeing a growing interest in their services, especially among younger families. More and more families are realizing the value of getting help with everything from managing their money to planning for their children’s education. This trend is good for The Legacy Haus because it allows them to grow their business and continue helping families build wealth that lasts for generations. The future looks bright for the family office industry in Nigeria. In the next few years, there will likely be a bigger demand for financial planning services as the economy becomes more uncertain. Family offices will also start to use more technology to improve how they deliver their services. In the medium term, family offices are expected to offer more specialized services, and there will likely be more competition in the market. But the number of wealthy families is also expected to grow, so there will be plenty of business to go around. In the long run, the family office industry is expected to become more established, with clearer rules and higher standards. Family offices may also start working together more across borders and there will likely be a bigger focus on investing in ways that are good for the environment and society. Overall, the family office industry in Nigeria is on the rise, and The Legacy Haus is well-positioned to be a leader in this growing market. So, who is Olufunke Olumide, the woman behind the vision? A 33-year-old lawyer, wife, and mother of two. When she’s not strategizing on how to build wealth, you might find her engrossed in singing melodious songs just for fun, and exploring her passion for interior design and fitting. Olumide’s dedication to her family reflects the core value of The Legacy Haus: a commitment to building long-term relationships with their clients, becoming trusted advisors who are there to guide you through every chapter of your success story.
What’s required is more than a Supreme Court judgement – Ogho Okiti
Given the unprecedented fiscal changes and proposals since President Bola Ahmed Tinubu became Nigeria’s 16th President on May 29th, 2023, it appears he is poised to be the most consequential “fiscal” president since independence. However, our generation’s worst cost of living crisis is preventing Nigerians from paying the required attention. In the last three weeks, three elements have come to light. First was the announcement of a new Federal Ministry of Livestock Development. The second is the bill seeking to create an additional 74 seats for women in the Senate and in the House of Representatives, a near 20% expansion of both houses. The third is the Supreme Court Judgment of July 11th that directed that the local government’s share of federal allocations be paid directly into their accounts. The third is my focus, and there are many dimensions to this judgment. First, since the return to democratic rule in 1999, Nigeria’s supreme court has delivered three important judgements on local governments. In 2004, in a judgement between the federal government and Lagos State, then led by Asiwaju Bola Ahmed Tinubu, the court ruled in favour of the State that the federal government had no right to withhold the State’s allocation. The federal government had withheld the State’s local government allocation because it created additional local government development councils. In 2022, under President Muhammadu Buhari, the court ruled against his executive order that empowered the accountant general of the Federation to bypass the State government and disburse federal allocations directly to local governments. The third was the ruling of July 2024. This time the Supreme Court ruled in favour of the federal government and ruled that federal allocation can be directly paid into local government coffers. I am not a lawyer, but the Supreme Court is contradicting itself, especially given that the Constitution has not changed. Nonetheless, it arrived at two important judgements. The first, and I quote …. “It is the position of this court that the federation can pay local government allocation directly to the local government or through the States. In this case, since paying them through the States has not worked, justice demands that federation account should henceforth be paid directly to the local government.” The second ruling of the Supreme Court outlaws the existence of caretaker committees and prevents State governors from removing local government chairpersons. In response, about 13 States have announced local government elections since the ruling. At this point, it is important to ask, what are the problems the President is trying to solve? So, there is no doubt that the president is attempting to solve genuine local government problems, but these problems are best resolved through legislation and political negotiations, and not the Supreme Court. Since the ruling, there is now an ongoing legislation for an independent local government electoral commission. The bill has now passed a second reading. It sounds good, except that it gives the president a role in this. Who is going to tell our legislators that the President of the Federal Republic of Nigeria is already too powerful? Why not allow representations of political parties on the electoral body based on some predetermined criteria? Why not constitute the body based on some residency? Why should the body have another parallel electoral database? What is independence when the chairperson and six commissioners are appointed by the president and confirmed by the Senate, especially given that Presidents have removed agency heads that have fixed terms even before their terms are over? And what is independent about its own budget that is approved by the Senate? In conclusion, the Supreme Court judgement exposes the most fundamental of Nigeria’s political elite problems since 1999 – the power grab. The tendency to continue to aggregate further and further / more and more powers, depending on which side we are on, is responsible for where we are today. The governors, since 1999 have learnt and graduated on how to aggregate local government powers to themselves. Now, the federal government, through the Supreme Court, has aggregated more powers to the President, rather than provide holistic and practical solutions to the inadequate representation of the people. If the president is genuinely seeking to make the local government independent, or even the States independent for that matter, he should facilitate the legislation that allows it to generate its resources, and not wait for monthly federal allocations. That is the way to ensure true fiscal federalism.
Nigeria got US $19 billion from the World Bank since 2019
ThinkBusiness Africa investigations show that the World Bank has approved support for programmes and projects in Nigeria totalling an estimated US $19 billion since 2019. These are principal amounts approved by the World Bank, either as loans from the International Bank for Reconstruction and Development (IBRD) arm or credit grants from the International Development Association (IDA). However, these data masks the difference between the principal amount approved by the Bank and the amount disbursed under the different programmes. The difference is largely accounted for by the inability of the government of Nigeria or the State government to meet the conditions for full disbursements, and predetermined timelines for disbursements. Analysis of the loans and grants shows that the World Bank has supported different categories of projects, including for stabilization and stimulus; renewable energy; gender and girls’ education; business reforms; safety net for the vulnerable in the society; water supply; digital identification; power sector reforms and recovery; and rural access in that period. Indeed, for the 10-year period between 2015 and 2024, the World Bank has given Nigeria a total of US $21 billion in combined IBRD loans of about US $3 billion and IDA credits of US $18 billion. This is about 75% of the total amount the World Bank has given Nigeria since the first loan in 1947. Starting from the first loan to the country in 1947, the World Bank has given a total of about US $39 billion in loans and credit. The original principal value of IBRD loans was US $9,442 million and of IDA credits at US $29,168. The data thus showing that Nigeria has received more credits than loans, a reflection of the country’s low-income status. It also shows that 75% of the total amount in the last 10 years compared to decades before then, showing the extreme weak economic conditions of the last decade. Project Title Commitment Amount in US $M Start Date Nigeria Rural Access and Agricultural Marketing Project 510 2020 Ogun State Economic Transformation Project 250 2020 Innovation Development and Effectiveness in the Acq. of Skills (IDEAS) 200 2020 Nigeria Improved Child Survival Program for Human Capital MPA 650 2020 Nigeria Digital Identification for Development Project 430 2020 Sustainable Procurement, Env. and Soc. Standards Enhancement (SPESSE) 800 2020 Additional Financing for MCRP 1760 2020 Power Sector Recovery Performance Based Operation 750 2020 Adolescent Girls Initiative for Learning and Empowerment 500 2020 Nigeria COVID-19 Preparedness and Response Project 514.3 2020 Edo Basic Education Sector and Skills Transformation Operation 750 2020 Nigeria SFTAS Additional Financing for Covid-19 Response PforR 750 2020 Community Action (for) Resilience and Economic Stimulus Program 750 2020 Nigeria Distribution Sector Recovery Program 1200 2021 Nigeria Sustainable Urban + Rural Water Supply, Sanitation and Hygiene 700 2021 COVID-19 Preparedness and Response Project Additional Financing 400 2021 Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) 700 2021 National Social Safety Net Program-Scale Up 800 2021 Better Education Service Delivery for All Operation Add. financing 123.8 2021 Livestock Productivity and Resilience Support Project 500 2022 Modernizing Financial and Data Management Systems in Borno State 350 2022 Nigeria: State Action on Business Enabling Reforms (SABER) Program 750 2022 M&E Support for NFWP 234 2022 Umbrella Organization to Support Nigeria for Women Projects 390 2022 Nigeria – AF Power Sector Recovery Performance Based Operation 750 2023 Nigeria for Women Program Scale Up Project 500 2023 Additional Financing for Adolescent Girls Initiative for Learning and Emp. 700 2023 Nigeria Distributed Access through Renewable Energy Scale-up Project 750 2023 NG Accelerating Resource Mobilization Reforms PforR 750 2024 Reforms for Economic Stabilization to Enable Transformation (RESET) DPF 1500 2024
Calling All Africa Enthusiasts! Immerse Yourself in the AfroFlavour Food Festival!
Calling all foodies, music lovers, fashionistas, and art admirers! The AfroFlavour Food Festival is coming to Baltimore, Maryland on Saturday, August 3rd, 2024, and it promises to be an explosion of African culture! This vibrant event is your gateway to a sensory adventure. Tantalize your taste buds with a journey through the rich and diverse flavours of African cuisine. From savoury Nigerian jollof rice to spongy Ethiopian injera, there will be something to delight every palate. But the AfroFlavour Food Festival offers more than just culinary delights. Immerse yourself in the sights and sounds of Africa with: Aspiring food entrepreneurs won’t want to miss the African Food Business Conference. This informative session features three industry experts tackling topics like: Calling all vendors! Showcase your delicious African food and drinks at the festival. The AfroFlavour team is searching for a curated selection of vendors offering a variety of options, including vegetarian, vegan, halal, kosher, and more. The party doesn’t stop after the festival! End the day with a bang at the AfroVibes After Party. Dress up as your favourite African hero or superhero and celebrate the rich tapestry of African culture under the disco ball. Don’t miss your chance to: The AfroFlavour Food Festival promises an amazing summer day out! Mark your calendars for August 3rd, grab your tickets for just $50, and get ready to celebrate the beauty and flavour of Africa! Event Details:
Acuity Partners: A Private Client Services and Business Advisory Law Firm Making Strides in Nigeria
Imagine a law firm that looks beyond legalese, a firm that understands your family’s legacy is as important as your business’s bottom line. That’s the vision behind Acuity Partners, a Lagos-based firm led by the dynamic Olanrewaju Olumide. Olumide, a lawyer by training with a keen eye for business, launched Acuity Partners in 2018. He saw a gap in the legal market – a need for legal services that catered to both individuals and the families behind their businesses. This holistic approach has made Acuity Partners a go-to for high net-worth individuals (HNIs), entrepreneurs, and established businesses alike. One of Acuity Partners’ biggest wins? Beating the odds. They started small, a remote team weathering the pandemic storm. But their resilience paid off. Today, they have a thriving office in Victoria Island and a prestigious clientele spanning finance, manufacturing, and real estate. The future of African business, according to Olumide, lies in private wealth management. Acuity Partners is ready. They’re expanding their reach, constantly seeking new clients to join their growing community. Imagine a partner who understands the intricacies of wealth management, who can help you navigate the ever-changing financial landscape and ensure your family’s legacy is protected for generations to come. That’s the kind of trusted advisor you’ll find at Acuity Partners. Domination, yes, but with a client-centric approach. Acuity Partners plans to grow their team and explore new office locations, all to serve you better. They’re even in talks to form strategic partnerships with international law practices and service providers, understanding that your needs may extend beyond Nigerian borders. Perhaps you’re looking to invest overseas or navigate complex international legal issues. Acuity Partners is building a network to ensure they can address your needs with the same expertise they provide locally. Here’s what truly sets Acuity Partners apart: their advisors aren’t just legal eagles. They’re well-rounded professionals with critical thinking skills, business savvy, and a deep understanding of human nature. They don’t just explain the law; they craft unique, out-of-the-box solutions tailored to your specific situation. Plus, project executives ensure seamless execution, taking the burden off your shoulders. Imagine a legal team that not only understands the law but can anticipate your needs and proactively address them. That’s the kind of proactive, client-focused service you can expect at Acuity Partners. Finding the right talent for this unique approach is a challenge, Olumide admits. They seek individuals who are more than just legal minds – they value critical thinking, business acumen, and emotional intelligence. After all, exceptional legal advice is just one piece of the puzzle; understanding your situation and goals is what leads to success. The Nigerian legal industry is in flux. Mergers with foreign partners are on the rise, and the rigid, traditional style is giving way to a more flexible, startup-friendly approach. Law firms are embracing social media and relaxed practices. Acuity Partners, built on adaptability, is perfectly positioned to thrive in this evolving landscape. The legal industry is competitive, especially for new firms like Acuity Partners. Established players have a head start in terms of experience, reputation, and resources. But Acuity Partners has a secret weapon: their niche expertise. By focusing on a specific area, they effectively halve the competition they face. Excellence, innovation, and a strong belief in their vision for the future are the other pillars of their strategy. So, who is Olanrewaju Olumide, the man behind the vision? A 32-year-old lawyer, husband, and father of two. When he’s not strategizing legal solutions, you might find him engrossed in a book, hitting the tennis courts, or cycling through the Lagos streets. Olumide’s dedication to his family reflects the core value of Acuity Partners: a commitment to building long-term relationships with their clients, becoming trusted advisors who are there to guide you through every chapter of your success story. Acuity Partners isn’t just another law firm. It’s a team of passionate professionals dedicated to your success story. Whether you’re a seasoned entrepreneur or just starting your journey, Acuity Partners is there to guide you every step of the way, ensuring your legacy thrives for generations to come.
Cardoso’s banking consolidation to drive NGX’s N3 trillion expansion
20 years after the first banking consolidation that led to significant expansion of the capital market, the Yemi Cardoso led Central Bank of Nigeria (CBN) is set to drive the next wave of growth on the NGX. Already, two of the largest banks in the country have provided signs of what is to come in the next 18 months as all the banks seek to meet the new minimum capital requirements by March 2026. As shown in Table 1, the CBN is raising the minimum capital requirements by 1000% in some instances and provided three options for the banks to meet the new requirements or upgrade or downgrade their authorisations. They could inject fresh equity capital through private placements, rights issues, or offer for subscription; through mergers and acquisition; and or upgrade or downgrade of licenses. Virtually all analysts spoken to by ThinkBusiness Africa reckon that the banks will prefer the first option provided in the CBN memo. Fidelity Bank was the first to approach the market since the directive in March 2024. On Thursday, 20th of June, Fidelity Bank opened its latest public offering to the Nigerian investing public. The bank seeks to raise N127 billion through the offering of 10 billion shares of 50 kobo each at N9.75 per share and 3.2 billion ordinary shares of 50 kobo at N9.75 per share. The bank’s market capitalization at offer price was N312 billion and upon completion, the bank will have a market capitalisation of N409 billion. The expectation is that the bank will return to the market ahead of the March 2026. The directives, as contained in the CBN directive of 28 March 2024, as shown in table 1, will mean an incredible expansion of the NGX All share index (ASI). Indeed, following Fidelity, Access Bank has followed up with plans to raise N351 billion by way of rights issue of 17.772 billion ordinary shares of 50 kobo at N19.75 per share. Table 1. Minimum Capital Requirements for Nigerian Banks Effective March 2026 Type of Bank Authorisation Minimum Capital Commercial International N500 National N200 Regional N50 Merchant National N50 Non – Interest National N20 Regional N10 Analysts spoken to by ThinkBusiness Africa reckon the most attractive option for most of the banks is to raise additional capital required through rights issues or offer for subscription. Most of the banks have developed and built different cultures that make mergers and acquisitions unlikely. They have also developed massive presence on the stock market that makes it very feasible to raise additional capital through the capital market. Unlike in 2004 /05, the total number of banks are small. In 2005, the number of banks were reduced from 89 to 25 after the consolidation exercise was completed. More importantly, most of the banks today have a track record of raising capital in the market, already established, pay dividends, and have significant headroom for going it alone. Mergers and acquisitions are not attractive options compared to 2005. Indeed, with two of the biggest banks raising an estimated N500 billion in two months, the NGX ASI could expand by as much N2 – N3 trillion on the back of the consolidation exercise by the governor of the CBN, Yemi Cardoso. Fig. 1. All Share Index of the NGX 2004 – 2014. There are many aspects of the consolidation exercise that should excite, not only the investing public, but the public in general. The first and obvious one is that the banks will become stronger, with small ratios of non-performing loans (NPL) compared to when the exercise started. Second, it demonstrates the enormous capacity of Nigeria’s capital market to raise an estimated N3 trillion in less than 24 months. Third, the Cardoso initiative is providing a great avenue for savings and investments in the country. Fourth, the exercise provides an avenue for the mop of liquidity in the Nigerian economy for savings and investments, rather than consumption. Fifth, the consolidation exercise will also support the macroeconomic stability efforts of the CBN since it provides another avenue for the liquidity, rather than the demand for US dollar.