Nigeria’s Central Bank’s discontinuation of the price verification will reduce transaction costs – NESG
The Nigerian Economic Summit Group (NESG), one of Nigeria’s foremost think tank has said that the discontinuation of the Central Bank of Nigeria’s (CBN) price verification system will help to streamline the importation process and reduce transaction costs for importers. It said this in its latest brief that it “supports the recent decision by the CBN to discontinue the price verification system portal”. The Central Bank had released a statement that it will discontinue its price verification system from 1st of July 2024 few days ago. According to the statement released by the CBN on the matter, importers will not be required to complete the price verification of Form M from the date. The CBN’s price verification system was introduced in August 2023. It was established as a mandatory trade document requirement and prerequisite for the completion of Form M. While the portal was set up to improve the transparency of the foreign exchange market transactions, it meant another layer of documentation and associated costs. While importers have argued for the portal to be discontinued and the process streamlined, it was the CBN’s remarkable turnaround of the foreign exchange market, which delivered market convergence and closed the disparity between the official Nigeria foreign exchange market and the parallel market that made discontinuation possible. read more. According to its policy brief, the discontinuation of the policy will have at least three benefits to importers, and by extension, the economy. It will streamline the importation process, reduce transaction costs, and increase business confidence and investments. “The elimination of the price verification report requirement will lead to a more streamlined importation process. By removing this administrative hurdle, businesses can expedite the importation of goods and raw materials, reducing lead times and improving the efficiency of supply chains. This enhancement in operational efficiency is expected to lower production costs and increase the availability of goods in the market,” the NESG said in its briefing. “The removal of the verification process will reduce the transactions costs associated with importation. Importers will save on both time and money previously spent on compliance, allowing them to reallocate these resources towards more productive uses,” the NESG further argued. Other benefits of the elimination of the requirement for the purposes of importation include boosting manufacturing, enhanced competitiveness, and support for macroeconomic instability. The price verification system was first introduced in in August 2020 to forestall over pricing and mispricing of goods imported into the country. It was made mandatory in August 2023.
Nigeria must grow its foreign reserves. – Ogho Okiti
Hello and welcome to my commentary this week. For some time now, the government and many Nigerians have been trying to forget the eight disastrous years of President Muhammadu Buhari. But that did not last very long. Last week, the International Monetary Fund (IMF) reminded us again after it projected that the Nigerian economy will be the fourth largest in Africa by the end of this year. But that is not President Buhari’s headache, so let’s stick to 2023. At the end of 2023, Nigeria was the third largest economy in Africa after Egypt and South Africa. To contextualise the awful decline in Nigeria’s GDP since 2015, the size of the Nigerian economy then was 492 US billion dollars, while that of Algeria which is now projected to overtake Nigeria this year was 187 US billion dollars. Indeed, in 2015, Nigeria was not just the largest economy in Africa, it was larger than the second, which was Egypt, by 142 US billion dollars. However, this commentary is not about mocking President Buhari’s economic policies. It is about pointing out how things can be much more different under President Bola Ahmed Tinubu than it currently is. So, here, I share three fiscal policy mistakes of the Buhari years that should not be repeated by President Bola Ahmed Tinubu. But before I do that, I want to take a quote from the book by Greg Mills, “Why Africa is Poor.” Greg Mills wrote, and I quote, “The main reason why Africa people are poor is because their leaders have made this choice”. He added, “The record shows that countries can grow their economies and develop faster if leaders take sound decisions in the national interest.” In the 8 disastrous years of President Buhari, the attitude, rarely publicly mentioned or discussed is that the government elevated Nigeria’s external problems. The government would readily blame the decline in oil prices from 2014 to 2016 for the economic recession of 2016 and 2017, the Covid – 19 shock of 2020 and the Russia / Ukraine war of 2022. Yes, these shocks were significant and were the fault lines, but the awful fiscal policies of the government amplified the problems and impact on the Nigerian economy. How? By escalating Nigeria’s deficits and debts, and by failing to carry out a single economic reform, President Buhari’s responses to economic shocks made economic outcomes even worse. Under President Buhari, Nigeria experienced an “Idi Amin” type of fiscal policy. He did not merely escalate Nigeria’s deficits and debts before expanding revenues but continued to expand them on the back of unrealistic and folly revenue expectations. The second mistake was to think that increases in government expenditure automatically translates to increases in investment, growth, and jobs. Nigeria’s experience has shown that not all government expenditures contribute to growth. Turning now to current contexts. The initial evidence is that President Bola Tinubu is different, and he is. In the first month of his administration, he carried out two major economic reforms. First was the removal of fuel subsidy, followed by the aggregation of all formal foreign exchange transactions into the Nigeria Foreign Exchange Market (NFEM). Unfortunately, these reforms have not progressed as intended. Exchange rate volatility invariably means that some element of fuel subsidy has returned, while the volatility of exchange rates negates one of the important reasons for the reforms. It is evident that President Tinubu recognizes that the difference he can make on Nigeria’s growth performance is not necessarily by increasing government expenditure. He knows that the greater impact on growth is dependent on the other things that he has started to do, which are the reforms around fuel subsidy, exchange rates, power and taxation. Policy reforms, which are invariably policy investments can shift the gear of the economy for another 25 years because of their impact on private investments. However, there is still something missing. If anything, the last seven months has buttressed the notion, and some will argue that it has reinforced the notion that the government believes monetary policy tools, elements, and applications will be sufficient to stabilize the Naira and bring inflation expectations down. In the context, the Central Bank of Nigeria has rightly tightened monetary policies, made the foreign exchange market more transparent, and removed many elements of market rigidities. However, what is the contributions of fiscal policy? Historically, every successive government have sought to use foreign savings for investments in Nigeria. That is great, but it is not sufficient. It is the reason why we suffer disproportionately from every shock to the economy. So, fiscal policy must step up. Nigeria needs to improve its level and rates of savings, and the government must lead. Indeed, the only government that followed this principle was also the one that was able to attract significant foreign investments. As I close, the point I’m making is that we must grow our reserves. We must seek to replicate the growth in reserves like Nigeria did under President Olusegun Obasanjo. It is the only antidote to frequent economic shocks, to attracting long term foreign investments, and a platform for keeping the value of our collective relative wealth stable in US dollars. The notion behind the role of foreign reserves in modern economic development is simple. It is like the share of equity of a business owner asking others to invest in the business. Foreign reserves is the equivalent of our skin in our development journey. It is the insurance that foreign investors look out for. And it is ridiculous to ask that only monetary policy to bear the brunt. That is not sustainable. For more of my thoughts, please visit tb.africa. I thank you.
Cardoso’s strategy paying off as exchange rate markets converge
For as long as anyone can remember, the Nigerian foreign exchange market has always been known for its multiples and the disparity between the official and the parallel exchange rates. However, following critical measures undertaken by Yemi Cardoso, the governor of the Central Bank of Nigeria (CBN) since September 2023, the two broad markets are converging for the first time since 1985. Following significant fall in oil prices in the early 1980s and the pressure on the US dollars, the then government’s reluctance to allow the demand and supply of the US dollars to determine its price against the Naira led to the emergence of what we now know as the official and parallel markets rates. According to available records, the parallel market rates was first recorded in 1985. Then, the Naira exchanged for the USD at 0.894 at the official rate, and N1.70 at the parallel market, a 91% gap. Historically, the Naira’s exchange rate, despite some attempts to change by some former governors of the CBN, have been fixed and or managed by the CBN. With the fixed or managed exchange rate regime came the “administrative” allocation of foreign exchange rates to areas or sectors the CBN believes are more critical, the restriction of access to the official foreign market for some purposes, and the determination of the rate at which government businesses are conducted. For instance, there are many instances in the past that the rates used for government business is different from the official and parallel rates. Also in 2015, the CBN restricted 41 items, and later 43, from access to the official foreign exchange market. This led to pressure on the parallel market. Cardoso reversed the decision in October 2023. Fig. 1. Parallel exchange rates started in 1985 and continue to diverge from official rate until Feb. 2024 Since becoming the CBN governor, despite early turbulence period in the exchange rate market, Cardoso has remained adamant in his pursuit of the reintroduced “willing buyer, willing seller”. This policy allows all eligible and permitted foreign exchange transactions in a single market. Before his appointment, the Bank had collapsed all segments of the foreign exchange markets into the importers and exporters (I & E) window, changed the operational rate for all government related business to the weighted average of the preceding day’s executed transactions at the I & E window, and the reintroduction of order based two-way quotes. However, many analysts spoken to by ThinkBusiness Africa believe it was the directive to cap the Net Open Position for banks at 20% short and 0% long of shareholders’ funds that has galvanized the foreign exchange markets towards convergence. On January 31, the CBN released a circular that the NOP of foreign currency assets and liabilities should not exceed 20% of a bank’s shareholders’ funds unimpaired by losses. This means that banks must keep the NOP within this limit to mitigate risks associated with foreign exchange fluctuations. By setting a limit to the NOP in both the short and long term, it puts a limitation on the ability of the banks to “speculate” with their shareholder’s fund. Proshare, one of Nigeria’s financial intelligence publications estimated at the time that about US $4 billion was affected by this directive. In addition to the directive on banks’ NOP, the Cardoso led CBN also removed the allowable limit on exchange rate quoted by International Money Transfer Operators (IMTOs), incentivizing them to stop the settling of exchange rate deals offshore. Those measures have been improved again by another set of measures mandating that Naira equivalent of IMTOs foreign exchange transactions be paid in Naira by their corresponding banks. Fig. 2. Nigeria’s Naira exchange rate to the USD for official and parallel markets. As the fig. above shows, the effect was immediate and the Nigeria foreign exchange market rates (NFEM), which is the I & E in the data, has followed the same pattern of the parallel exchange rates. As can also be seen from the graph, from the December 2022 until the foreign exchange reforms of 14th June 2023, though the official and parallel exchange rate markets were stable, there was a constant difference of about N300. This difference and gap in the exchange rate created significant distortions in the exchange rate market, provided arbitrage incentives for corruption, and created “winners” and “losers” in the country’s foreign exchange market. However, from February this year, the rates have converged. Though other challenges the remain, the most important is the stability of the rates. The current trajectory of between N1450 – N1490 to the US dollar has remained at this band for seven weeks now, the longest stretch of any band since June 2023.
Food Crisis: Why its happening and what can be done about it. – Ogho Okiti
Last week, the National Bureau of Statistics released inflation figures for April 2024. Headline inflation was 33.6%, up from 33.2% in March 2024. Food inflation was 40.53%, compared to 24.61% in April 2023. The inflation report coincided with the release of an excellent brief by Nextier, an Abuja based think tank on the 15th of May titled “averting Nigeria’s imminent food crisis.” The brief relied on the combined work of four major international institutions to arrive at its conclusions. UNICEF, Food and Agriculture Organisation of the United Nations in the report “The State of Food Security and Nutrition in the World 2023, and the United Nations World Food Programme 2023 all estimated that 25 million Nigerians were at high risk of food security last year. The international rescue committee has now projected that that figure will reach 32 million this year. These estimates mean that in the space of two years, 15 million Nigerians have been added to the number of those at risk of acute food security and hunger. It is not only unacceptable, but also grossly irresponsible and portends serious social danger for the country. We all know how we got here, and all the reports alluded to that. According to the reports, continued conflict, climate change, inflation and rising prices were the key drivers of the awful trend. The reports went further to say that food access has been affected by persistence violence in the North East States of Borno, Adamawa, and Yobe, while armed banditry and kidnapping in States such as Katsina, Sokoto, Kaduna, Benue, and Niger have displaced farmers. In addition to these reasons, Nigeria experienced a catastrophic flooding across many states in the country in 2022. According to the National Emergency Management Agency, the 2022 flooding damaged more than 600,000 hectares of farmlands, affecting harvests in the year and subsequent farming seasons. Many of these communities have not recovered nearly two years after the crisis. So, the food inflation figure of 40% is no fluke. If anything at all, it masks the dangerous and rapid increases in the prices of food that have left millions of families in the country impoverished. In preparing this, I found out that the price of a bag of garri is now N90k, while the price of a bag of rice is now N70k. The price of a paint bucket size of beans is now N7k, whereas it was N3k in December 2023. A loaf of bread is now above 1k, selling as high as 2k in some areas. Generally, prices of foodstuffs now double every 3 – 4 months. In most of the analysis, there are some critical points that are missing, though and these points have implications for food production in the future. The most important is the data shared by the National Population Commission ahead of the planned 2023 census. The 2023 enumeration recorded a significant shift in urbanization of the Nigerian population. In 2006, 65.1% of Nigeria’s population lived in the rural areas, while 34.4% lived in the urban areas. In 2023, rural population is now 41.3% while urban is 58.7%. It means that since 2006, there has been a rural urban shift in Nigeria’s population of about 20% in favour of urban areas. While population growth means that some previously classified rural areas are now urban, it has mostly been caused by migration. For context, the average urbanization for Africa is 44.5% in 2022, according to the UN Trade and Development (UNCTAD). The rural urban migration that we see coincided with the rise in insecurity in the country. The implication is that the rise in migration has not followed the economic motivation reasons of jobs and economic opportunities in urban areas. The corollary of this is that migration into urban areas has not translated into increasing productivity in the urban areas, but also means less agriculture production in the rural areas. Nigeria is thus losing both ways. Symptomatic of that is the many thousands of young people that one sees on the streets of Lagos that are very likely out of school and homeless. Food prices are also up in the rural areas, which suggests that the usual narrative of subsistence farming requires reexamination. Now, long term fall in food prices have implications for both long term growth and underline productivity. Until food prices are relatively stable, it is difficult to have stable prices, rising productivity, and rising real income growth. The long-term prospects of the economy to generate long term savings, low interest rates, and increasing discretionary income is dependent on the increasingly lower proportion of income growth spent on food. This pattern of development has been replicated everywhere else and needs to be replicated in Nigeria. As I conclude, I propose three things. First is the deliberate and intentional support of large-scale farming. The rural migration data has shown a decreasing number and proportion of people in the rural areas. The continuation of that trajectory leaves the continued reliance on subsistence farming in tatters. Second, improve the security of the rural areas to slow down the migration to the extent any form of migration from the rural to the urban areas is only motivated by better income opportunities. Third, there should be a deliberate focus on rural infrastructure. That will not only improve the living conditions in the rural areas but also improve their capacity for income growth and opportunities. For more of my thoughts, please visit tb. Africa. I thank you.
The problem with Nigeria’s minimum wage is the process. – Ogho Okiti
As we near the end of another minimum wage process, what is clear, as always, is that the gap between the demands of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on the one hand, and the government and the organized private sector on the other side remains huge. What do we know? After the NLC triggered a nationwide strike two weeks ago following the rejection of the N60,000 made public by the government, the government now suggests it has reached an agreement with labour for a new minimum wage of N62,000., but labour unions disagree. It is very easy to understand why labour unions are agitating for a significant rise in the minimum wage. The current minimum wage is ridiculous. Even an increase of the current minimum wage of N30,000 to N62,000 per month, though more than 100% increase, is less than it is in relative US dollars. In 2018, when the minimum wage was set at N30,000, it was the equivalent of 98 US dollars. At N62,000, the new minimum wage will be about 42 US dollars. It is especially easy to understand the fierce agitation this time. As my commentary two weeks ago highlighted, Nigeria is going through the worst costs of living crisis in more than 25 years. Food inflation is above 40% and there is no sign that that is going to abate anytime soon. Indeed, the cumulative annual inflation rate since the last minimum wage in 2018 is about 100%. So, a minimum wage of N62,000 barely compensates for previous inflation, not to mention inflationary expectations that will follow increases in the minimum wage. Also, using the proposed N62,000 minimum wage, which is an equivalent of 42 US dollars, it will still be lower than that of Bangladesh, Burkina Faso, Cameroon, Chad, Republic of Congo, but higher than that of Cuba where every citizen receives free food. Indeed, from the data I have seen, Nigeria’s minimum wage will still be lowest in the world in US dollar terms. It reminds me of last year when Piodi, an ecommerce site estimated that it will take more than five or six generations for anyone earning Nigeria’s minimum wage to earn a million US $. Given the economic crisis since last year, it will now take more than ten generations. While these are the immediate issues, the real problem is structural. It is the awful process we use in determining the minimum wage that is the problem. The Nigeria Labour Congress (NLC), like every labour organization anywhere in the world sees a direct correlation between a minimum wage and standard of living while businesses and government sees a correlation between it and the costs of labour and the ability to pay. Or simply, its underline productivity. It is in this context that Governor Chukwuma Soludo was quoted as saying, and I quote, “he pities the president if he accepts an unsustainable minimum wage”. But both the politicians and the labour unions are not asking the most important questions. Why are governments not able to pay workers good wages? The simple reason is that most of these workers are not “productive”, and the problem lies with the governments. They are often employed, not to be productive, but to fill spaces for political considerations. Both the governments and the labour unions are hypocrites. Indeed, it is open secret that a great number of Nigeria’s civil service is also a social service. So, the reform of Nigeria’s wage and employment policy is also critical to Nigeria’s sustainability. The lack of an effective process for adjusting the minimum wage without agitation is the main reason why we have the current challenges with labour. An effective system will have the following features. First, it will be a standing committee. I believe many will be surprised that there is an office called the national salaries, incomes, and wages commission in Nigeria. Established by an Act in 1993, it was set up to deal with “issues relating to salaries and wages of Nigerian workers” and “take care of annual reviews of wages and salaries in the public service”. Only the government can explain why this commission is ineffective in contributing towards a stable policy environment for the adjustment of minimum wages. So, the first thing required is a legislation of the process of adjustment of minimum wages in Nigeria. Second feature is that there should a standard time lag for the review and adjustment of Nigeria’s minimum wage. For some countries, it every three years, and for some, it is every year. For Nigeria, it has been haphazard and only changes until labour agitates for it. That is why it is chaotic, disruptive, and inefficient. It was first done in 1981, then 10 years later in 1991, then 1999, 2000, 2001, and 2013 and the last time was 2018. In conclusion, there are structural adjustments that need to be made to Nigeria’s labour market that will improve the wages and living conditions of those at the bottom of the pyramid. First, the minimum wage should be set it in regional or state terms or let there be both Federal and State minimum wages. In the context, State legislations can take into careful consideration their peculiar labour market conditions, including considerable differences in regional standard of living, costs of labour, and prevalent types of work. A single national minimum wage gives the erroneous notion that the Nigerian economy is homogenous. It is not. The economy of Lagos is totally different from the economy of Abia, Kano, Ekiti, Zamfara, etc. and these economies are different from each other. While it understandable to have a uniform minimum wage, it is not wise to have a single minimum wage for the whole country. For instance, India has more than 1200 minimum wage rates for different types of industries and skills levels and the United States have more 100 different minimum wages across the nation. Second, minimum wage in Nigeria should be set per hour
Agama to shrink “time to market” for firms after Senate confirmation – Ogho Okiti
After his Senate confirmation yesterday, the Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has set his eyes on shrinking the time it takes for companies to access the market for different forms of capital. The priority to shrink the time to market follows the frustration of many market stakeholders during the regime of Lamido Yuguda where the time to market sometimes extended beyond 12 months. Agama’s priority, according to sources to him is to seek to conclude the process in 14 days. Dr. Agama was confirmed as DG SEC by the Senate Committee on Capital Markets, chaired by Senator Osita Izunaso. The committee also cleared the nominations of Frana Chukwuogor as Executive Commissioner (legal and enforcement), Bola Ajomale as Executive Commissioner (Operations), and Samiya Usman as Executive Commissioner (Corporate Services). They were all nominated April 19 by President Bola Ahmed Tinubu who is seeking the cooperation of the capital market for his US $1 trillion economy. In addition to shrinking the “time to market”, Agama is also set to establish very strong market rules to not only ensure minimal infraction but also deal with any form of infraction. According to sources, “the SEC must not only ensure that market players follow the rules of the market, but also that there are in no doubt that any infraction will be punished.” That is the only way to strengthen the market, the source added. The third leg of his priority is capital market education. The view here is that gross ignorance of how the market works is not a catalyst for strong capital market growth. To speed up the time it takes for companies to access the market, Agama plans to establish an advisory and business relations office in the SEC. The purpose of the business relations office is to offer prior screening of every proposed offer to ensure that it meets existing rules and regulations of the capital market regulator. Prior experience has shown that one of the delays come from gaps in the applications to SEC and the back and forth on these gaps often mean that companies lose out on access to cheap capital on offer at the capital market. The prescreening process by experts at the business relations office will thus be a great welcome by market participants. The confirmation of Dr. Agama means that this the first substantive DG of the SEC to emerge from within the organization since Mounir Gwarzo in 2017. Until his appointment by the President, Agama was the Managing Director of the Nigerian Capital Market Institute (NCMI), a subsidiary of the SEC. Before then, he was the head of Registration, Exchanges, and Market Infrastructure and Innovation, one of the strongest and key departments at the commission. In addition to top level management in SEC, Agama was a secondee to the US Securities and Exchange in 2018 after completing an 18-month programme in capital market at the George Washington University in the US. The SEC thus have at the helm this time a stockbroker, an accountant, an economist, after receiving his Ph.D. in economics, with distinction, from Nile University of Nigeria after submitting a dissertation on the links between cryptocurrency operations and macroeconomic variables in Nigeria.
Highlights from Our 62nd Annual General Meeting in Abuja: A Memorable Event for Our Bank
Good Evening and Happy Sunday! Last Friday in Abuja, we celebrated our 62nd Annual General Meeting. Read more about the event and view exclusive photos in today’s newspaper feature. A Promise Fulfilled: UBA Shareholders Commend 2023 Superlative Performance, Dividend Payout ….Shareholders Give Approval to recapitalize as Directed by the Regulators….UBA Pays Total Dividend of N95.8bn, translating to N2.80 per share in 2023. Shareholders of Africa’s Global Bank, United Bank for Africa (UBA) Plc, have praised the board, management and staff of the Bank on the impressive performance recorded over the past years and especially in 2023, culminating in the payout of N78.7bn as final dividend for the 2023 financial year. The shareholders took turns to express their delight during the bank’s 62nd Annual General Meeting which was held at the Congress Hall of Transcorp Hotels in Abuja on Friday. The shareholders overwhelmingly approved the Board of Director’s proposal to raise additional capital through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments in the Nigerian and/or international capital market. Addressing shareholders at the event, the Group Chairman, Mr. Tony Elumelu, appealed to shareholders to participate fully and re-invest their dividends in the bank’s recapitalisation drive as this will ensure that they continue to enjoy even higher returns from their investments. He said, “I call on you shareholders to re-invest a substantial part of your dividends in our rights issues which will be announced soon, as we will be giving you the first opportunity to own a share in all the countries where we operate, I am advising shareholders, as you get your dividends, reinvest a significant part of it. As for my board members and I, we would be investing 100% of the dividends we get, because If we don’t do so, it means we would be leaving food on the table for others who did not labour for it,” Elumelu stated. In the year under consideration, UBA had declared an interim dividend of N17.1bn representing a pay-out of 50kobo per share for the first half of 2023, thus bringing the total dividend for the 2023 financial year to N95.8bn, representing N2.80 per share. Surprisingly and in another first, dividend payouts were received while the meeting was still on just seconds after the resolution on dividend payments were passed at the meeting by the shareholders, resulting in open excitement from the shareholders. They also commended the bank’s management over the impressive performance for the 2023 financial year, which resulted in the large payout of dividend to its investors, and highlighted its thriving business in its African subsidiaries, which continues to contribute significantly to the Group’s total income. Alhaji Mukhtar Mukhtar, one of the shareholders who spoke at the meeting, commended the Group Chairman, Tony Elumelu, and the Group Managing Director, Oliver Alawuba, for their concerted effort towards ensuring that the performance of the bank reached unprecedented heights in the year under consideration. He said, “I want to specially commend the management and Board of UBA, especially the Chairman, Tony Elumelu and the GMD/CEO, Oliver Alawuba, who have been managing activities of this great institution over the past few years. “We are impressed at the results that you have recorded so far, how you have managed to maintain a well-structured balance-sheet and diversified balance sheet with total Assets growing to over N20trn. The achievement that the bank has recorded under your leadership, especially the sterling contributions of our subsidiaries in Africa deserves accolades,” Muktar stated. Another shareholder, Patrick Ajudo, also commended Elumelu for keeping the promise made to shareholders a few years ago to begin to pay increased dividend. “Our Chairman, Tony Elumelu, promised shareholders a few years ago in this same hall, that he will move from ‘kobo-kobo’ dividends to naira dividends, and he has kept that promise. We are very excited, because, not only have you kept that promise, but you have backed it up by even matching the industry standards. Indeed, we are proud to be associated with such a brand that has integrity, and we highly commend you for this,” he stated. Barrister (Mrs) Adetutu Siyanbola, another shareholder, took time to commend the bank’s management for its operations over the decades, especially as it celebrates its landmark 75th year anniversary, praising the gender balance and high female representation on the bank’s board, which according to her, is a feat worth emulating by other financial institutions in Africa. While commending the GMD for wining several awards in the 2023 financial year, she expressed satisfaction that the bank did not incur any penalty in the year under consideration, which meant that UBA had zero infractions and didn’t run foul of any regulations. At the end of the 2023 financial year, UBA recorded an impressive leap in gross earnings, as it grew from N853.2 billion recorded at the end of 2022 to close at N2.07tn; representing a strong 143 percent growth; total assets also rose remarkably by 90.22 percent, to close at N20.65 trillion up from N10.86 trillion in 2022. Profit before tax, also grew exponentially by 277 percent, to close at N758billion, up from N200.88 billion recorded in 2022; while profit after tax (PAT) grew by 257 percent from N170.2 billion in 2022, to N607 billion. The Group Managing Director/CEO, Mr. Oliver Alawuba, explained that despite being a year of significant geopolitical and economic challenges, UBA’s strength, the effort and dedication of the team, and its leadership in strategic areas such as innovation and sustainability, helped the bank to grow in a profitable and sustainable manner, Looking ahead, he said, “The outlook is great because we are diversified. Our African subsidiaries contributed over 55% to the bank’s profit this year, and we will do more. Already, the Bank entered 2024 from a position of strength, with proven resiliency, a powerful brand and a strong capital position. “As we begin 2024, “execution” will continue to be on the front burner, with an unrelenting focus on market leadership and excellent customer
Transcorp Group Demonstrates Robust Growth in FY 2023; Revenue Increases By 47.3%, PBT by 93.5%. (Lagos, March 31, 2024)
Transnational Corporation Plc (“Transcorp” or the “Group”), Nigeria’s leading listed conglomerate, announces its financial results for the year ended December 31, 2023. The Group achieved substantial growth in its financial indicators, reinforcing its market leadership and strategic positioning. In its audited results, Transcorp reported significant year-on-year growth, with revenue rising to N197 billion in the year 2023, from N134 billion in 2022, representing a 47.3% increase. The strong performance is further demonstration of the Group’s strategic focus and effective execution. Highlights of Transcorp group Results: In response to the results, Dr. (Mrs) Owen D. Omogiafo, President/Group Chief Executive Officer of Transcorp, commented, “The financial results for 2023 underscore our Group’s strong operational performance and the results of our strategic initiatives. Notwithstanding the strong macroeconomic headwinds in the year, we achieved significant growth in revenue and profits, indicating our ability to navigate a dynamic market landscape effectively. Our primary objectives remain centered on achieving sustainable growth, enhanced operational and technical efficiency, and maximizing value for shareholders.” Transcorp is dedicated to its transformation agenda, emphasizing sustained growth and a relentless pursuit of long-term value for shareholders. About Transnational Corporation Transnational Corporation Plc (Transcorp Group) is one of Africa’s leading, listed Conglomerates, with strategic investments in the power, hospitality, and energy sectors, driven by its mission to improve lives and transform Africa. Transcorp’s power businesses, Transcorp Power Plc and Transafam Power, provide over 15% of Nigeria’s installed power capacity. Transcorp is committed to developing Nigeria’s domestic energy value chain, through its investments in OPL281. The Group’s hospitality business, Transcorp Hotels Plc owns the iconic Transcorp Hilton Abuja, Nigeria’s flagship hospitality destination, and has launched the digital platform Aura by Transcorp Hotels.
Transcorp Hotels Plc Delivers Strong Performance in 2023 (…With 36% Year-on-Year Revenue Growth).
Transcorp Hotels Plc (“Transcorp Hotels” or the “Company”), the listed hospitality subsidiary of Transnational Corporation Plc (“Transcorp Group”) has released its audited 2023 full-year results, showing outstanding performance and setting new revenue and profit records. In its full year audited results filed with the Nigerian Exchange (NGX), Transcorp Hotels reported a record-breaking revenue of N41.5 billion in 2023, compared to N30.4 billion in 2022, marking a substantial 36% growth year-on-year, while operating income also grew by 50%, to close at N13.1 billion as of December 2023, compared to N8.8 billion in December 2022. HIGHLIGHTS OF THE RESULT: Dupe Olusola, Managing Director/CEO commenting on the results stated that the Company’s exceptional performance was achieved through continued dedication to excellence, unparalleled guest satisfaction and a resilient spirit that defines its commitment to delivering exceptional service and stakeholder value. “By strategically investing in innovations, that align with our growth objectives, we continue to deliver these impressive numbers, beating our previous year’s records. Our considerable investment in our iconic Transcorp Hilton Abuja have been rewarded by significant increases in occupancy rates and guest satisfaction. We are continuing this investment, with our 5,000-capacity event centre purpose-built to host local and international entertainment, conference, and exhibition events. This new world-class facility located within the premises of Transcorp Hilton Abuja is scheduled to open in the second half of 2024. I am immensely proud of the team’s dedication, resilience, and unwavering commitment to excellence, in providing an unparalleled hospitality experience. We remain focused in our mission to continue exceeding expectations and setting new benchmarks in the African hospitality industry. About Transcorp Hotels Plc: Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group), one of Africa’s leading, listed conglomerates, with strategic investments in the power, hospitality, and energy sectors, driven by its mission to improve lives and transform Africa. Transcorp Hotels Plc. is consistently reshaping the hospitality landscape in Africa, aligning with its mission to lead and contribute to Nigeria’s growth while positively impacting lives.
