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Tuesday, 30 July 2019

30 Nigerians apply for N180m US investment visa

Liam Hope July 30, 2019 0

About 30 Nigerians are said to have indicated interest in securing the United States EB-5 foreign investor visa.

The Managing Director, Emerging Markets (Africa) for Atlantic American Partners, Daniel Ryan, disclosed this in an interview with journalists in Lagos on Monday.

Ryan, an equity fund management firm in charge of the programme, explained that an applicant would be expected to pay $500,000(N180m) to qualify for the visa.

The amount, which is the least investment in the programme, is under the category tagged ‘Targeted Employment Area investment’.

The standard investment category is $1m.

The programme, operated by the US Citizenship and Immigration Services, was established in 1990 to facilitate increased investment in the US economy.

It enables foreigners who make an investment in a US business to obtain a green card and become lawful permanent residents, and eventual citizens of the US.

The investor can permanently live and work in the US with their spouse and unmarried children under the age of 21.

Ryan said three Nigerians had been issued the visa since April when he started promoting the programme in the country.

The 30 Nigerians, who have indicated interest, according to him, will have to undergo background checks to ascertain the legitimate source of funding and ensure they have not been convicted of any crime.

He said once the investment was made and initial application (called I-526) had been submitted, it would take 18 to 24 months for approval.

“At a point, a conditional green card is issued, providing all the benefits of a full green card until job creation is proved. Twenty-one months later, the applicant can file the second part of the application (I-829).

“Upon approval of the I-829, the conditional status is converted to a permanent green card. The whole process should take five years.”

Ryan disclosed that the money is returned to the investor with interest and a token after they had settled in the US and money had been realized from the property they have invested in.

He hinted that there were discussions around increasing the investment threshold.

This was confirmed by an immigration alert on Monday which indicated that a new rule increasing the EB-5 (TEA) investment amount from $500,000 to $900,000 will come into effect from November.

With BVN, your loan may be recovered from another bank

Business

Liam Hope July 28, 2019 0

The new group managing director of Zenith Bank, Ebenezer Onyeagwu, says banks are planning on a mechanism that will allow them to recover customer loans from deposits made in other banks.

Onyeagwu made this known on Thursday when he paid a courtesy to the Nigerian Stock Exchange (NSE) to introduce the bank’s new management.

He said the new loan to deposit ratio policy of the Central Bank of Nigeria would boost economic activities as the loans would develop SMEs.

The CBN had recently mandated all deposit money banks to maintain a minimum loan to deposit ratio of 60% by September 1 or face penalty.

Onyeagwu explained that banks would not be reckless in lending but that the concern had been the attitude of borrowers towards repayment.

“Bank Verification Number (BVN) has helped in solving the problem of identity and the banker’s Committee is working on building stronger capability into that,” NAN quoted him to have said.

“The capability that will enable us to enforce very effective and tight credit control such that if a customer takes a loan from bank A and abandon and go to bank B to open an account, with the BVN, such customer can be traced.

“If the customer is owing bank A, N1 million and goes to bank B to open an account and deposits N2 million, electronically the system will recover the money from the debtor.

“We believe this will help drive decent behaviour and promote good credit process.”

Onyeagwu, who takes over from Peter Amangbo, assured investors of improved dividend and excellent service delivery.

“We will like to assure the market that we will do everything within us to elevate the strong virtues, the values and the superior performance that Zenith Bank has always been known with,” he said.

“Under this new leadership, you will rest assured that we will deliver outstanding performance.

“We will reward our shareholders and will continue to provide very strong and transparent disclosure to the market.”

Ernest Ndukwe becomes MTN chairman as Pascal Dozie retires

Business

Liam Hope July 25, 2019 0

A former chairman of the Nigerian Communications Commission (NCC), Ernest Ndukwe, has been appointed as the chairman of MTN Nigeria.

In a notice sent to the Nigerian Stock Exchange (NSE) on Wednesday, the company announced that Pascal Dozie will handover as chairman in September and Ndukwe’s tenure will be effective from September 2.

Pascal, who was also the founder of Diamond Bank Plc, has been involved in MTN Nigeria since inception in 2001.

As of May 17, 2019, his shares at MTN Nigeria (which is 1.67% of the company) was valued at N37.07 billion.

Other members of the board retiring are:

Sani Bello – vice-chairman
Victor Odili – non-executive director
Ahmed Dasuki – non-executive director
Babatunde Folawiyo – non-executive director
Gbenga Oyebode – non-executive director

Members of the newly-appointed board who would be independent non-executive directors are:

Michael Onochie Ajukwu: He is the director of Keystone Bank and former executive director, corporate banking at the United Bank for Africa (UBA). He is the chairman of Altech West Africa Limited, Munca Properties Limited and Mobax Nigeria Ltd. He sits on the board of Intafact Beverages Ltd, a subsidiary of SABMiller in Nigeria and Novotel, a member of Accor Hotels group
Muhammad K. Ahmad: He is the former director of the Nigeria Deposit Insurance Company (NDIC) and pioneer director-general of the National Pension Commission (PENCOM). He currently chairs the boards of Polaris Bank (former Skye Bank); Taj Bank, Credent Capital Advisory and FATE Foundation.

The newly appointed non-executive directors are:

Andrew Alli: A chartered accountant with Coopers & Lybrand (PricewaterhouseCoopers) in the United Kingdome, he is a member of the advisory board of the Lagos Business School (LBS). He became the CEO of SouthBridge in 2018. He has served as a non-executive director on the boards of ARM Cement Limited and Guaranty Trust Bank Plc.
Omobola Johnson: She was the minister of communications and technology between 2011 and 2015. Johnson is the founding chairperson of Women in Management and Business (WIMBIZ) and sits on the boards of Guinness Nigeria Plc and World Wide Web Foundation.
A.B. Mahmoud: is the Managing Partner and one of the founding partners of the law Firm of Dikko & Mahmoud. sits on the boards of various companies and charities including Stanbic IBTC Pension Managers and Aliko Dangote Foundation
Ifueko Okauru: She was the chairman of the Federal Inland Revenue Service (FIRS) and Joint Tax Board (JTB) between 2004 and 2012. She has also served a director on the boards of Nigerian Breweries Plc and Seplat Development Company Limited.

I was already emir when CBN approved Union Bank/Atlas Mara deal - Sanusi

Business

Liam Hope July 21, 2019 0

The emir of Kano and former governor of the Central Bank of Nigeria, Muhammadu Sanusi II, says the Atlas Mara transaction which resulted in the change of Union Bank’s ownership was carried out months after he left the apex bank.

He was responding to an inquiry on a petition submitted to Abubakar Malami, then attorney-general of the federation, on April 3.

“This Atlas Mara transaction was approved several months after I left the CBN,” he said.

“I left CBN in February 2014 and the transaction was approved in July 2014 when I was already emir of Kano.

“I have no idea what this petition is about but I do not believe the CBN was part of any fraudulent transaction given what I know of its due diligence processes.”

Petitioners allege that the Atlas Mara transaction dispossessed Nigerian investors and transferred ownership of Union Bank to a few persons including insiders, chieftains of competitor banks and others who would not pass CBN’s “fit and proper test” for bank ownership.

The petition claimed that Okechukwu Enelamah, former minister of trade and investment, allegedly organised the registration of the offshore shell company in Mauritius called Union Global Partners Limited for the purpose of disguising the true majority ownership of Union Bank shares concealed in the offshore company.

The petition also alleged that the transactions commenced under Udoma Udo Udoma’s supervision as chairman of the Securities and Exchange Commission (SEC) and sealed when he became the chairman of Union Bank of Nigeria Plc.

The official record has it that Atlas Mara holds 49% stake in the bank which is in turn controlled by Fairfax Africa based in Canada and the United States.

NAN reported that the Assets Management Corporation of Nigeria (AMCON) was also compelled to divest its 20% shares of Union Bank to Atlas Mara.

The establishments mentioned in the petition included the Chapel Hill, National Security Exchange (NSE), SEC and the CBN.

Buhari finally signs AfCFTA

Business

Liam Hope July 07, 2019 0

President Muhammad Buhari has finally signed the African Continental Free Trade Area (AfCFTA) agreement.

AfCFTA is a trade agreement between AU member states with the goal of creating a single market followed by free movement and a single-currency union.

The president signed it at the 12th extraordinary session of the assembly of the union on AfCFTA and the first mid-year coordination meeting of the African Union (AU) and the regional economic communities (RECs) in Niamey, Niger Republic.

The president signed the agreement at exactly 10:48am, making Nigeria the 53rd country on the continent to append its signature to the document.

Buhari had said he delayed signing the agreement “to give room for extensive consultations with stakeholders”.

He had set up a committee to assess impact of Nigeria joining the free trade area. In June, the committee submitted its report to the president, recommending that Nigeria sign the treaty.

Twenty four countries have already ratified the AfCFTA which is expected to be the world’s largest free trade area since the formation of the World Trade Organization. It has a potential market of 1.2 billion people and a gross domestic product (GDP) of $2.5 trillion, across all 55 member states of the AU.

The extraordinary session of the assembly of the union also launched the operational instruments of the agreement establishing AfCFTA.

The instruments are AfCFTA rules of origin, tariff concession portals, portal on monitoring and elimination of non-tariff barriers, digital payments and clearing systems and African Trade and Observatory Dashboard.

Buhari signed the deal one week after members of the Economic Community of West African States (ECOWAS) agreed to launch ECO, proposed single currency in the region.

The heads of the 15-member countries reached this decision at the 55th ordinary session of ECOWAS in Abuja.

Buhari finally agrees to sign AfCFTA

Business

Liam Hope July 03, 2019 0

President Muhammadu Buhari will sign the agreement establishing the African Continental Free Trade Area (AfCFTA) this weekend.

The presidency announced this via Twitter on Wednesday.

According to the tweet, Buhari will sign the agreement at the 12th Extraordinary Summit of the African Union scheduled to hold from July 4 to July 8 in Niamey, Niger Republic.

His resolve to sign the treaty comes after “extensive domestic consultations”.

In June, the presidential committee on impact and readiness assessment on AfCFTA had submitted its report to the president, recommending that Nigeria sign the treaty.

Buhari had said that Nigeria could not afford to rush into signing the agreement as it has both negative and positive effects on the economy.

AfCFTA is a trade agreement between 49 African Union member states with the goal of creating a single market followed by free movement and a single-currency union.

It was signed in Kigali, Rwanda, on 21 March 2018. Ratification by 22 countries is required for the agreement to enter into force and the African Continental Free Trade Area to become effective.

Nigeria’s agreement to the deal comes three days after members of the Economic Community of West African States (ECOWAS) agreed to launch ECO, proposed single currency in the region.

The heads of the 15-member countries reached this decision at the 55th ordinary session of ECOWAS in Abuja.

New Forte Oil CEO says name likely to be changed

Business

Liam Hope June 26, 2019 0

The chief executive officer, Forte Oil Plc, Olumide Adeosun, says the company will most likely undergo a name change to reflect its new structure.

Adeosun spoke at a briefing to unveil strategies the company’s new management in Lagos on Tuesday.

Femi Otedola, former chairman of Forte Oil, announced on June 19 that he had completed sale of his majority shareholding in the business to Prudent Energy, a local oil trading firm.

Following the sale, Forte Oil announced Adeosun’s appointment as CEO after the resignation of Akin Akinfemiwa.

Assuring shareholders of business continuity, Adeosun said the new owners of the oil firm are in for long term investment.

“The name FO is actually personal to an individual and that individual has sold his shares and it’s very likely that we are going to rebrand,” he said.

The CEO also said Forte Oil shares will not be delisted from the Nigerian Stock Exchange (NSE) neither will minority shareholders be bought out through mandatory tender offering (MTO) as speculated.

An MTO, in line with the provision of section 131 of the Investment and Securities Act (ISA) and Rule 445 of the Securities and Exchange Commission (SEC), makes it mandatory for any investor or person that acquires between 30% and 50% of a company’s voting rights to bid publicly to other minority shareholders.

The law was put in place to ensure that no shareholder could gain control of a public company either directly or indirectly without offering the minority shareholders an opportunity to exit the company at a fair price.

“Our message to our minority shareholders is that we are going to sustain the business here, we want people to retain their shares in this company,” Adeosun said.

“Our desire is that people who are stockholders of this company continue to remain stockholders of this company and benefit from the dividend we hope to discuss over time.”

The new board of directors will hold an inaugural meeting on Wednesday, June 26.

Bank mergers in the offing as CBN considers recapitalisation

Business

Liam Hope June 24, 2019 0

The governor of the Central Bank of Nigeria, Godwin Emefiele, says there are plans to carry out a recapitalization exercise for deposit money banks in the country.

Emefiele made this known on Monday while unveiling the five-year plan of the bank.

Bank recapitalization is the act of changing the capital structure of a bank to provide more equity funds to meet the bank’s long-term financing needs to ensure the security of shareholders fund.

In July 2004, the CBN announced the recapitalization of the banking sector from N2 billion to N25 billion with effect from December 31, 2005.

This led to the reduction in the number of banks to 24 from 89.

“We will continue to improve our on-site and off-site supervision of all financial institutions while leveraging on data analytics and our in-house experts across different sectors to improve our ability to identify potential risks to the financial system as well as risks to individual banks,” he said.

“In the next five years, we intend to pursue a program of recapitalizing the Nigerian banking industry so as to position Nigerian banks among the top 500 in the world.

“Banks will, therefore, be required to maintain a high level of capital as well as liquid assets in order to reduce the impact of an economic crisis on the financial system. With a rise in digital payment and cybersecurity threats.”

According to Emefiele, the apex bank will continue to defend the naira within the next five years as there are no plans to float the naira.

He said this would “reduce the impact that exchange rate volatility could have on our economy”.

Forte Oil sale completed

Business

Liam Hope June 20, 2019 0

Femi Otedola, billionaire businessman, says the sale of Forte Oil Plc, has been completed.

Last year, Otedola, who was chairman of the oil firm, had announced the plan to sell off his 75 percent stake in the company to “maximise the opportunities in refining”.

In a message he posted on Wednesday, the businessman said the process had been completed and he is now prepared to focus on his investment in the power sector.

“A few years ago, my team and I embarked on an arduous task of transforming a moribund petroleum marketing business, African Petroleum Plc (formerly British Petroleum) into Forte Oil Plc; a leading integrated solutions provider with solid footprints in downstream petroleum marketing, Upstream Services and Power Generation and one in which we built intrinsic value to the benefits of our shareholders,” he wrote.

“In line with my principle of business focus, we have divested from our marketing and upstream businesses and shall from now on focus and consolidate on the gains of our power generation business, Geregu Power Plc. We wish our successors the very best and urge them to build on our legacies which have been established since 1964.”

Lafarge announces plans to sell South African subsidiary

Business

Liam Hope June 20, 2019 0

Lafarge Africa Plc says there is a proposal at hand to sell its 100% equity in Lafarge South Africa Holdings Limited (LSAH).

In an explanatory note sent to the Nigerian Stock Exchange on Wednesday, the company said the transaction will be with Caricement B.V, an indirect subsidiary of Lafarge Holcim Limited.

“Lafarge Africa will present the terms of the transaction to the shareholders for consideration at the 60th Annual General Meeting in July, as special business, which will be voted on by way of an ordinary resolution in accordance with CAMA,” it said.

“LSAH, a member of the LafargeHolcim Group, was established in 1998 and manufactures and supplies cement, aggregates, ready-mix concrete and fly ash in South Africa.”

The South African subsidiary was acquired from Financiere Lafarge SAS in 2014 for $200 million.

“Lafarge Africa’s ownership of 100 per cent of LSAH, represents an indirect average holding of 72.40 per cent in the underlying principal operating companies in South Africa, including Lafarge Industries South Africa, Lafarge Mining South Africa and Ash Resources,” it added.

According to the company, LSAH’s operations have been subjected to shrinking demand in South Africa and an aggressively competitive market.

“Between 2000 and 2007, demand was fueled by increasing infrastructure spend which tapered off and eventually declined quite sharply.

“Low growth indicators, growing budget deficits, declining infrastructure spend and reduced consumer discretionary income continues to constrain industry volumes; and characterise the downward trend in South Africa’s building materials sector.

“The competitive environment, slow recovery and struggle to defend market share have heightened market pressure to reduce prices, significantly impacting LSAH‟s operating margins in recent years.”

The company has also redeemed its matured N26.4 billion, 14.25 per cent, three-year bond due on June 15, 2019.

It registered a N100 billion bond issued programme in June 2016 out of which the sum of N60 billion was issued in series one and two of the programme.

According to the company, the matured series 1 bond was issued on June 10, 2016, with a three-year tenor and at a fixed coupon of 14.25%.

Our loans are cheaper than Eurobonds, AfDB tells African countries

Business

Liam Hope June 14, 2019 0

The African Development Bank (AfDB) says African countries can save as much as $1 billion on a 20-year-loan from the bank instead of the Eurobond market.

Speaking on Thursday at a panel session where the bank’s financial state was discussed, Hassatou Diop N’sele, the bank’s group treasurer, said the amount of infrastructure financing covered by the private sector could double if African countries harness the full potential of their capital markets.

The group treasurer said the bank’s operating revenue has been growing since 2010 and some of its income has been reinvested to strengthen reserves and business growth capacity.

On debt sustainability, Simon Mizrahi, director of service delivery, performance management and results, said Africa’s debt has increased in recent years but “not to unsustainable levels”.

Pleading for caution, he said: “We need to continue to generate financing and spur growth without increasing debt”.

On the African free trade agreement, Mizrahi said: “Africa will struggle to be competitive at the global scale if it continues to operate as 54 fragmented economies. The continent needs to be more integrated, it needs larger economic spaces so that Africa can attract more investors, create more and better jobs, boost internal trade and create continent-wide value chains that are globally competitive.”

In recent times, the Nigerian government has been issuing Eurobonds to fund the budget deficit. The last one issued in February 2018 was worth $2.5 billion.

In October, the Senate approved a request by the federal executive council to issue a $2.78 billion Eurobond.

I will run for second term as AfDB president - Adesina

Business

Liam Hope June 14, 2019 0

The president of the African Development Bank (AfDB), Akinwumi Adesina, says he will seek a second term.

He made this known on Friday at the ongoing annual meetings of the bank in Malabo, Equatorial Guinea.

“I will run as a candidate to complete the work we have started,” he told journalists at the closing press conference.

“I understand the responsibilities. I do not work for myself. I work with all of my body to fast track the improvement of this continent with the support of our donors.

“I am driven by Africa and it is not a chore for me. It is a labor of love so I am humbled when I see the trust placed on me to elect me as president of the bank.”

Listing the achievements of the bank, Adesina, who is a former minister of agriculture in Nigeria, said 55 million people now have access to an improved transport system because of the bank’s projects.

He said 16 million now have electricity in their homes and 32 million can access clean water and medical facilities.

We can lift 100m Nigerians out of poverty - Buhari

Business

Liam Hope June 12, 2019 0

President Muhammadu Buhari says the All Progressives Congress (APC) government can move 100 million Nigerians out of poverty within 10 years.

In his Democracy Day address in Abuja on Wednesday, the president said a database of poor and vulnerable Nigerians, as well as that of unemployed youth, was being developed to address the problem of socio-economic inequality in the society.

According to him, for Nigeria to progress, a collective resolution to address corruption and foster broad-based prosperity is required to create a country that is not only for a few privileged but for all Nigerians.

“In the face of these challenges, our government elected by the people in 2015 and re-elected in March has been mapping out policies, measures, and laws to maintain our unity and at the same time lift the bulk of our people out of poverty and onto the road to prosperity,” he said.

“This task is by no means unattainable. China has done it. India has done it. Indonesia has done it. Nigeria can do it. These are all countries characterized by huge burdens of population.

“China and Indonesia succeeded under authoritarian regimes. India succeeded in a democratic setting. We can do it. With leadership and a sense of purpose, we can lift 100 million Nigerians out of poverty in 10 years.”

Buhari, who pledged to move the nation to the next level of prosperity, peace, and stability, said his administration would fulfill its promise of securing the country, improving the economy and fighting corruption to a standstill.

“At the heart of inequality and insecurity, is pervasive corruption. When we took office we realized that if you fight corruption, corruption will fight back– and we have seen this at all levels,” he said.

“For Nigeria to progress, a collective resolution to address corruption and foster broad-based prosperity is required to create a country that is not only for a few privileged but for all Nigerians.’’

The president, who spoke extensively on social unrest occasioned by the activities of Boko Haram and kidnappers across the country, said he would be addressing regional security summit to develop a joint strategy to address the challenges.

Wakanda was more talked about than any African business in 2018 - Oladokun

Business

Liam Hope June 12, 2019 0

Director of communications at the African Development Bank (AfDB), Victor Oladokun, says Wakanda was a part of more discussions than any African business or sports in 2018.

The AfDB director made this known while addressing a press at the ongoing annual meetings of the bank in Malabo, Equatorial Guinea.

“In 2018, the most talked about African country was the fictitious nation of Wakanda. More was spoken of Wakanda than about African business, sports or development,” he said.

Oladokun explained that this was the result of a study carried out by the University of Southern California.

Results of the research showed that Wakanda was only ranked behind Egypt, South Africa, and Kenya.

Wakanda is a fictitious African country from Marvel’s 2018 movie, ‘Black Panther’.

“What I am trying to say is that we are all partners in development and we cannot outsource our narratives. We cannot also debrand ourselves. The extent that we debrand ourselves is the extent that development will not come into the continent,” he explained.

“As we speak, there are youths trying to traverse through the desert or Meditteranean because of a lack of hope. There are real problems but there are lots of great things happening on the continent.”

Commenting on the situation, Akin Adesina, president of the AfDB, expressed the opinion that the future of African youth is not in Europe.

“I don’t believe that the future of African youth is in Europe or the bottom of the Mediterranean or the heat of the Sahara.”

CBN quietly ‘adjusts’ exchange rate

Business

Liam Hope June 11, 2019 0

The Central Bank of Nigeria (CBN) has released some of its hold on the naira.

In the exchange rate section of its website, the bank replaced the N305/$ rate to ‘the naira exchange rate is market-determined’.

This would mean that the exchange rate will be determined by market demand and supply.

However, inside sources say the act was carried out at the end of May and described it as a managed float as the bank intends to still carry out interventions as it deems appropriate.

This is similar to its actions in June 2016 when the exchange rate was adjusted to N305 from the official N199/$ rate.

At present, the bank makes forex available to various segments of the market to meet demand.

It also introduced an Investors and Exporters Window to provide forex for industrial purposes.

The Nigeria Customs Service had adjusted the exchange rate for its levies to N326 from N306 and began implementation on Monday.

Emmanuel Onyeme, public relations officer of the Association of Nigeria Licensed Customs Agents (ANLCA) at Tin Can Island Port, had confirmed the development saying the rates were effective since Monday, June 10.

President Muhammadu Buhari had initially kicked against devaluing the currency saying the action was synonymous to killing the naira.

“I’m not an economist neither a businessman, I fail to appreciate the economic explanation. How much benefits have we derived from naira devaluation in the past?” he had said.

What are the implications?

The primary effect might be an initial tumble, as was experienced in 2016.

People in need of forex for school fees, medical payments and basic travel allowance would have to pay more. The rates would, however, reach a place of stability after a period with monitoring from the apex bank.

It would also mean that the federal and state governments would have to pay more to service dollar-denominated debts.

This would, however, mean more revenue for the Nigerian National Petroleum Corporation (NNPC) and other enterprises that receive earnings in dollars.

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