Dons EzeSTORY BEHIND RESURRECTION, SCRAPPING OF HERITAGE BANK
STORY BEHIND RESURRECTION, SCRAPPING OF HERITAGE BANK The story of Heritage Bank can be likened to the idiom of the old wine in a new bottle, an already existing establishment offered as if it were a new one, Daily Trust reports. It is the story of how Societe Generale Bank of Nigeria (SGBN), re-commenced operation on January 29, 2013, but this time as Heritage Bank. Dinosaurs Spine at Hang Dong, Ta Xua, Son La seen from above00:00 / 02:5810 Sec SGBN, founded by the late Dr Olusola Saraki, was arguably one of Nigeria’s biggest banks, with over 140 branches spread across major cities in the country at a time. The influential Saraki family, now headed by Senator Bukola Saraki, former Senate president and a former governor of Kwara State, would no longer be in dominating control of the bank. In the resurrected SGBN, International Energy Insurance (IEI) had acquired a major stake, with the Saraki family also retaining a 10 per cent shareholding, but with no principal control. As of September 2013, the bank’s stock was publicly owned by the following corporate entities and individuals: Heritage Investment Services Limited, 80 per cent; Priority shareholders 9 per cent, and Other minority shareholders, 11 per cent. In the preceding arrangements, Ifie Sekibo, a trained accountant and member of the Chartered Institute of Bankers and Institute of Petroleum, London, who was then the Executive Vice Chairman of IEI, became the pioneer managing director of the Heritage Bank. The Central Bank of Nigeria (CBN) revoked SGBN’s licence in 2006 over its inability to meet the December 31, 2006, recapitalisation deadline. The CBN had increased the minimum capital for banks to N25 billion in 2004, and gave them up till the end of 2006, to conclude the consolidation. However, SGBN was among the 64 banks that couldn’t meet the recapitalisation requirement or seal a merger/acquisition arrangement with any of the 25 banks that sailed through. However, the owners had gone to court challenging the licence revocation and in June 2008, Justice Binta Murtala Nyako, ruled that the CBN’s decision was “in bad faith, unconstitutional, null and void.” As part of the resolution moving forward, Heritage Bank was deemed to have met the statutory N10 billion capital base for regional banking. Mrs Josephine Aligwekwe, Group Head, Corporate Affairs of Heritage Bank, quoted the CBN letter dated December 27, 2012, conveying the commencement approval titled ‘Re: Application for A Commercial Banking Licence with Regional Authorisation’. The letter was signed by the then CBN Director of Financial Policy and Regulations, Chris Chukwu. From that point, the immediate task of the new management was undertaking a validation of the account statements of former customers of the moribund SGBN. Heritage Bank went on to return 100 per cent of existing Societe Generale account holders’ monies to their owners. Heritage Bank Plc took immediate action after sorting out legacy issues and went on to offer banking and financial services in the country, including in the South West, South East and the North. As of December 2015, the total asset valuation of the bank was estimated at US$1.7+ billion (N483.4 billion). Its shareholders’ equity was worth at least US$88 million (N25 billion). In October 2014, Heritage Banking Company Ltd. successfully met the requirements of the Asset Management Corporation of Nigeria (AMCON) and the CBN toward owning 100 per cent shares in Enterprise Bank Ltd. On January 27, 2015, AMCON officially transferred ownership of Enterprise Bank Ltd. to Heritage Bank Plc On the back of the acquisition, Heritage Bank Plc expanded to 127 branches and 202 automated banking centres with over 350 ATMs in all states of the federation and the Federal Capital Territory (FCT). Inside Heritage Bank’s journey to liquidation According to CBN’s Revocation Order…
NAIRA CRASH: NIGERIA SECURES FRESH $925M LOAN
NAIRA CRASH: NIGERIA SECURES FRESH $925M LOAN Nigeria has secured an additional $925 million loan from the African Export-Import Bank (Afreximbank) to help stabilize the country’s economy. In a statement on its website on Thursday, Afreximbank announced an additional disbursement of $925m under the syndicated $3.3bn crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company Limited. Its latest accordion disbursement for Project Gazelle Funding Limited brings the total current funded facility size to $3.175bn. Arranged and coordinated by Afreximbank, the accordion arrangement saw the raising of a combined total of $925m from a consortium of crude oil off-taker lenders including but not limited to the Oando Group and Sahara Energy Resource Limited. “Afreximbank acted as Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent for the transaction which is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts,” the bank stated. This follows the success of the first accordion tranche of the $3.3bn facility. In December 2023, the project received funded commitments totaling $2.25m. The $925m accordion arrangement raises the total amount disbursed to $3.175bn. Commenting on the disbursement, President and Chairman of the Board of Directors of Afreximbank, Prof Benedict Oramah, said, “The milestone achieved thus far on this facility demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa. “It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.” Oramah described the original facility as ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa. He said the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments. The Group Chief Executive Officer, NNPC Limited, Mele Kyari, commended Afreximbank management and team for their investment philosophy and active interest in co-creation of prosperity. “The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPC and Nigeria’s growth aspirations,” Kyari stated. He further assured Afreximbank and all investing communities of NNPC’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally. On August 17, 2023, the NNPCL announced that it had secured a $3.3bn emergency crude oil repayment loan from the Afreximbank.It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.
FG SUSPENDS COLLECTION OF LEVIES FROM OKADA RIDERS, SHOPS FOR SIX MONTHS
FG TO SUSPEND COLLECTION OF LEVIES FROM OKADA RIDERS, SHOPS FOR SIX MONTHS The Federal Government plans to suspend the nationwide collection of levies from various sectors, including shops and Okada riders, for six months as a medium to bring relief to those struggling with the high cost of living. President Bola Tinubu, exercising his powers under section 5 of the Nigerian Constitution, is considering this suspension to help reduce inflation and stabilize prices. The proposed suspension is part of a draft executive order titled “Inflation Reduction and Price Stability (Fiscal Policy Measures, etc.) Order 2024,” dated May 1. The suspension will affect several sectors, including Okada riders, transporters of goods, fuel transporters, wheelbarrow and cart pushers, shop owners, and market traders. These groups will benefit from a temporary halt in the collection of various FG levies, which include road haulage tax, business premises registration fees, and market taxes. The executive order emphasizes the need to reduce inflation and lower the prices of essential goods across the country. By suspending these FG levies, the government hopes to ease the financial strain on small business owners and transport workers, ultimately making goods and services more affordable for Nigerians.The draft order also calls on states and local governments to support the implementation of this tax suspension. This cooperation is crucial to ensure the effective execution of the relief measures and to maximize their positive impact on the economy.
CBN REVOKES HERITAGE BANK’S LICENCE
CBN REVOKES HERITAGE BANK’S LICENCED The Central Bank of Nigeria (CBN), on Monday revoked the licence of Heritage Bank Plc with immediate effect. The move is in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020,The CBN said this action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The apex bank said the Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability. This, the CBN added, follows a period during which the apex bank engaged with the bank and prescribed various supervisory steps intended to stem the decline. The CBN said, “Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step. Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired. “The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020. We wish to assure the public that the Nigerian financial system remains on a solid footing.“The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system.”
CONCERN AS FG BORROWS N20.1TRN UNDER TINBU
CONCERN AS FG BORROWS N20.1TRN UNDER TINUBU The Federal Government borrowed N20.1 trillion from domestic investors in the first year of President Tinubu’s administration, representing year-on-year YoY increase of 117 per cent from the previous year, prompting concerns over impact on the economy including likely additional pressure on inflation, increased debt service cost and higher borrowing cost from businesses. Analysts noted that the sharp increase in Federal Government’s borrowing has the potential to compound the historic high inflationary trend in the country which may lead to further interest rate hikes by the Central Bank of Nigeria, CBN and by extension increased cost of borrowing for businesses and individuals. The Federal Government borrows from the domestic investors through issuance of FGN Bonds, FGN Savings Bonds, and Sukuk Bonds by the Debt Management Office, DMO. In addition to these are the Nigeria Treasury Bills, NTBs, issued by the CBN on behalf of the FG. Financial Vanguard analysis of data from the DMO and CBN showed that in the 12 months ending May 31st (June 2023 to May 2024), also the first year of President Bola Tinubu, the FG borrowed N20.09 trillion through these instruments, representing YoY increase of 117 per cent from the N9.275 trillion borrowed in the previous 12 months, namely June 2022 to May 2023. Most of the increase in borrowing was through the NTBs auctions conducted by the CBN, which also constituted 66 per cent of FG’s domestic borrowing during the period. Borrowing details According to data from CBN, FG’s borrowing through NTBs rose YoY by 188 per cent to N13.235 trillion in the 12 months ending May 2024 from N4.592 trillion in the 12 months ending May 2023. FG’s borrowing through the monthly FGN Bond auctions, which constituted 32.8 per cent of total domestic borrowing during the period, rose, YoY by 42 per cent to N6.476 trillion in the 12 months ending May 2024 from N4.537 trillion in 12 months ending May 2023. FG’s borrowing through Sukuk Bonds, which accounted for 1.7 per cent of total domestic borrowing during the period, rose, YoY by 169 per cent to N350 billion in the 12 months ending May 2024 from N130 billion in the 12 months ending May 2023. FG’s domestic borrowing through FGN Savings Bonds accounted for 1.5 per cent of total borrowing during the period, also spiked, rising YoY by 116 per cent to N29.17 billion in the 12 months ending May 2024 from N16.07 billion in the preceding 12 months ending May 2023. Interest rate hike Among other things, the 117 per cent YoY increase in FG’s domestic borrowing in the 12 months ending May 2024 was driven by investors’ response to the high interest rate regime during the period following hike in the Monetary Policy Rate, MPR by the CBN. Analysis showed that the average MPR rose to 20.32 per cent in the 12 months ending May 2024, representing 4.11 percentage points increase from 16.21 per cent in the preceding 12 months ending May 2023. As a result, the average interest rate on NTBs rose to 9.1 per cent in 12 months ending May 2024, representing 5.1 percentage points from 4.0 per cent in the preceding 12 months ending May 2023. In the same vein, the average interest rate on FGN Savings Bond rose to 17.91 per cent at the May 2024 auction from 10.89 per cent at the May 2023 auction. Analysts’ comments Notwithstanding the influence of the high interest rate regime, analysts expressed concern that the sharp rise in FG’s borrowing from domestic investors is harmful to the private sector as it makes it more costly for businesses to borrow. The analysts were however divided on the impact of the borrowings on inflation. Commenting, Co-Founding Partner, Comercio Partners, a Lagos…
ENUGU GOVT TO ENFORCE PAYMENT OF LAND USE TAX ON 800,000 HOUSES
ENUGU GOVT TO ENFORCE PAYMENT OF LAND USE TAX ON 800,000 HOUSES The Enugu State Internal Revenue Service has announced the enforcement of payment of land use charges on 800,000 houses in the state, including ancestral homes in various communities. The Chairman of the service, Mr. Ekene Nnamani, who disclosed this, said the enforcement would start from today, June 1, 2024. He said the drive was part of the effort to realise its N20bn revenue target from land use charges in 2024, adding that land and property taxes were the mainstays of the government’s internally generated revenue. According to Nnamani, the plan is also aimed at boosting the state’s internally generated revenue in line with Governor Peter Mbah-led government’s disruptive innovation agenda, designed to transform the state. He stated that the government had automated the Land Use Act charges as part of efforts to meet its target. “Enugu State Government has automated land use charge in the state. Through the Geographic Information System, we have been able to identify 800,000 properties in the state. “Every property owner in both the metropolis and villages is required to pay land use charges to enable the government to carry out its developmental plans for the citizens. “These fees are dependent on the value of the land and where it is located. It ranges from as low as N15,000 to N300,000,” he noted. He said that even owners of ancestral homes were required to pay land use charges, explaining that those in rural areas were also benefiting from the dividends of democracy, such as schools, healthcare services, and other social amenities. “The charges are in different categories and are charged per plot of land. The houses occupying two plots of land will pay for two plots. “So, in line with the disruptive innovation promise of Governor Peter Mbah, the service has been able to use the GIS to identify property in the state. Land Use law of 2016 says that every property owner in the state must pay charges and it is paid to the Enugu State Internal Revenue Service,” he added. The chairman urged the residents to cooperate with the service by doing the needful to avoid sanctions.He claimed that no responsible government could realise its transformational dream for the people without the citizenry playing its part, such as the obligation of tax payment.
ENUGU GOVT LAUNCHES GIS JUNE 1 TO MANAGE PROPERTY TAX
ENUGU GOVT LAUNCHES GIS JUNE 1 TO MANAGE PROPERTY TAX The Enugu State Government says it will launch the Enugu Geographic Information Service (ENGIS), to help the state manage its property tax on June 1. The Executive Chairman, Enugu State Internal Revenue Service (ESIRS), Mr Emmanuel Nnamani, disclosed this during a chat with the News Agency of Nigeria (NAN) on Friday in Enugu. He said the idea was to enable Enugu State to migrate its land use charge using ENGIS that enables both the state and residents of state know about their property and manage property tax. Nnamani explained that with it, ESIRS could locate people’s houses using the system to find out their payment status. According to the chairman, people can see their payments online as well as process their Certificates of Occupancy (CofO) using the platform. “It is part of the disruptive innovation of Gov Peter Mbah and it is coming into effect June 1. “It allows the state and residents of Enugu to know about their property and manage its taxes. “You will be able to see your property and ESIRS will also be able to see it with the location using a map or drone. We can send you demand notice and once you pay online, it will update,” he said. Speaking on inability of some house owners to pay for land use charge, the executive chairman called on them to sell their houses as it was being done in western world if they could not maintain it. While regretting that there was no functional mortgage, Nnamani noted that it was not everybody that qualified to live in his or her own house, saying that one could build house under mortgage. “We need to develop a mortgage in Enugu where people can build their houses, a mortgage whereby every civil servant can own at least a two bedroom apartment in his home town.“Once your appointment is confirmed, mortgage will start building for you. What you need is where you will live and it is wrong to use pension to build a house.
PORT HARCOURT REFINERY BEGINS OPERATION JULY
PORT HARCOURT REFINERY BEGINS OPERATION JULY The 210,000-barrel-per-day Port-Harcourt refinery may finally commence operations by the end of July after several postponements. The new date was disclosed on Monday by the National Public Relations Officer, Independent Marketers Association of Nigeria, Chief Ukadike Chinedu. He stated that the development would stimulate economic activities, reduce the price of petroleum products and ensure adequate supply. Last year in December, the Minister of State for Petroleum Resources, Heineken Lokpobiri, announced the mechanical completion and flare start-off of the biggest crude refinery in Port Harcourt. The refineries comprise two units, with the old plant having a refined capacity of 60,000 barrels per day and the new plant has 150,000 BPD. The refinery shut down in March 2019 for the first phase of repair works after the government secured the service of a technical adviser of Itay’s Maire Tecnimont to handle the reviews of the refinery complex, with oil major Eni appointed technical adviser.On March 15, 2024, it was reported that the Group Chief Executive Officer of NNPC Limited, Mele Kyari, stated that the Port Harcourt refinery would commence operations in about two weeks.
WE INCREASED OUR IGR BY 400% IN FIRST QUARTER OF 2024 – ENUGU TRADE MINISTRY
WE.INCREASED OUR IGR BY 400% IN FIRST QUARTER OF 2024 – ENUGU TRADE MINISTRY The Enugu State Commissioner for Trade, Investment and Industry, Mrs Adaora Chukwu says the ministry increased its Internally Generated Revenue (IGR), by 400 per cent in the first quarter of 2024. Chukwu disclosed this during a Media Chat with correspondents on Friday in Enugu. The Commissioner said the ministry generated N86 million between January and April, 2024 representing 400 per cent increase compared to the N28 million generated in the same period in 2023. Chukwu said the money was generated from taxes from business premises and other permits. She said other sources of revenue would come from investments, equity, and cash flow, adding that the ministry was working hard to revive and activate non operational assets in the state which would generate more revenue. Chukwu, who described the ministry as ‘unique’, said its strategic objective was to create an enabling environment and ensure security for investors. “We designed a roadmap for investment opportunities in the state and came up with the way of de-risking investment, having launched an aggressive investment promotion campaign to attract investors across the sectors. “We engaged with investors and today we are seeing remarkable results as we witnessed significant results in our investment in infrastructure space. “In transport, we are about to secure some commitment from developers and investors to help complete the International Airport aimed at making Enugu State the regional hub for export. “Apart from this, we decided to build a cargo terminal and are currently in discussion with the apex bank to help us build the Quality Assurance Centre to standardise all the export commodities from Enugu State,” Chukwu said. On agriculture, she said the state was moving from an agrarian economy to a more industrialised economy and had secured investment in setting up Agro Processing Zone. According to her, the Agro Processing Zone will kick off either the last quarter of 2024 or first quarter of 2025. “The state also secured investments in the United Palm Ltd targeted at reviving the non -operational assets and expanding their value chain in agriculture. Contract has been awarded for its revitalization. “In the hospitality sector, we have secured investment to revive moribund assets like the Presidential Hotel and also awarded contracts to complete the International Conference Centre with a five star hotel to promote tourism. “Imagine completing the International Airport, an international flight coming in and you have all these facilities. “In Energy space, we are also trying to activate the dormant assets like coal mines as well as natural gas as we are engaging some investors to help us revitalise them,” she stated. Speaking on tax policy, Chukwu added that the administration streamlined revenue generation by harmonising demand notices, “where my ministry, Board of Internal Revenue, ESWAMA are now on one demand notice”.
NIGERIA WOULD HAVE NO NEED TO IMPORT FUEL FROM NEXT MONTH – DANGOTE
NIGERIA WOULD HAVE NO NEED TO IMPORT PETROL FROM NEXT MONTH – DANGOTE Africa’s richest man and Chairman of Dangote Group, Aliko Dangote has assured that following laid down plans of the Dangote Refinery, Nigeria as a nation will have no need to import gasoline from next month. Dangote also said his refinery has capacity to supply West Africa’s petrol and diesel needs, and the continent’s aviation fuel demand. The entrepreneur made this announcement at Africa CEO Forum Annual Summit in Kigali on Friday, while expressing optimism in the transformation of Africa’s energy landscape. “Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of litre.” He also outlined progresses made by the oil company to ensure that Africa as a continent becomes self-sufficient when it comes to the energy sector. “We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico. “Today, our polypropylene and our polyethylene will meet the entire demand of Africa today and we are doing base oil, which is like engine oil, we are doing linear benzyl, which is raw material to produce detergent. We have 1.4 billion people in population, nobody is producing that in Africa. “So, all the raw materials for our detergents are imported. We are producing that raw material to make Africa self-sufficient. “As I said, give us three or a maximum of four years and Africa will not, I repeat, not import any more fertilizer from anywhere. We will make Africa self-sufficient in both potash, phosphate, and urea, we are at three million tonnes and in the next twenty months, we will be at six million tonnes of urea which is the entire capacity of Egypt. We are getting there.” Dangote also went further to outline the achievements of the company since the commissioning of the refinery in February. “For some of us, despite the boom of the capital market of the US, you know, Google, Microsoft and the rest, we didn’t really participate, we took all our money and invested in Africa. “We had this dream, just about five years ago and we said we want to move from five billion (dollars) revenue to thirty billion revenue and we made it happen. It is possible and now we have made it happen and now we have actually finished our own refinery. “Our refinery is quite big, it is something that we believe that Africa needs. If you look at the whole continent, there are only two countries that don’t import petroleum products which is a tragedy. They are only Algeria and Libya. The rest are all importers. “So, we need to really change and make sure that we don’t just go and produce raw materials, we should also produce finished products and create jobs. “One of the things we also need to know as Africans is that we produce raw materials and export them, when you export raw materials and somebody now keeps importing things into your continent and dumping goods. what you are importing is poverty and exporting jobs out. So, we have to change that narrative,” he said. “We just commissioned in February and now we are producing jet fuel, we are producing diesel and by next month, we will be producing gasoline. What that would do is that we would be taking most of the African crude that are being produced and also be able to supply not only Nigeria, because our capacity is too big…