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Access Bank Plc Announces Strategic Update And Transactions In Furtherance Of Its Vision To Be Africa’s Gateway To The World

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Access Bank Plc (“Access Bank” or ‘’the Bank’’) announces today that it has received the Central Bank of Nigeria’s Approval-in-Principle for the Bank’s restructuring to a holding company (“HoldCo”).

The proposed HoldCo structure would enable the Bank to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance. Further details regarding the HoldCo structure will be communicated to the market in due course.

Access Bank also announces definitive agreements to bolster its market position in Mozambique and enter the South African market. This follows the recent transaction with Cavmont Bank in Zambia and further embeds the Bank’s presence in the SADC region, one of Africa’s most important trading blocs.

These transactions will result in a more connected African banking network that builds on Access Bank’s existing foundation and enhances its value proposition to stakeholders, including customers and employees. Shareholders will benefit from the economies of scale of a larger banking network, including the associated cost efficiencies arising from the Bank’s federated IT system and the replication of investments in innovative products across a wider range of markets.

A broader and connected Africa network remains a core strategic focus for geographic earnings growth and diversification, which will further enhance profitability and risk metrics. Through these transactions, Access Bank will be well placed to promote regional trade finance and other cross-border banking services, further leveraging its presence in key global trade corridors in the UAE, the UK, China, Lebanon, and India.

Strategic Entry and Acquisition in Mozambique

Access Bank announces that it has received regulatory approvals to commence operations in Mozambique under the name Access Bank Mozambique, S.A. (“Access Bank Mozambique”).

Access Bank also announces that its subsidiary, Access Bank Mozambique, has entered into a definitive agreement with ABC Holdings Limited (“ABC Holdings”), a wholly-owned subsidiary of Atlas Mara Limited (“Atlas Mara”) to acquire African Banking Corporation (Moҫambique), S.A., (“BancABC Mozambique”) for cash, in a combination of definitive and contingent consideration.

This transaction will be funded from the capital invested by the Bank in Access Bank Mozambique and will result in the Access Bank Mozambique becoming the 7th largest bank in the country, up from the 20th. As an enlarged business, Access Bank Mozambique will have an enhanced capacity to play a more impactful role in the growth of the Mozambican economy, particularly in the emerging oil and gas sector, an industry that Access Bank has deep experience in.

The transaction is subject to regulatory approvals and customary conditions precedent.

 

Strategic Investment in South Africa

Building on its strategy of delivering a robust banking operation that connects key African markets, Access Bank has entered into a definitive agreement with GroCapital Holdings (“GroCapital”) to invest in Grobank Limited over two tranches. The first is an initial cash consideration for a 49% shareholding, increasing to a majority stake in the second tranche. Both tranches are subject to various regulatory approvals and the overall transaction subject to Grobank’s shareholder approvals.

GroCapital, whose shareholders include the Public Investment Corporation – Africa’s largest investment manager, and Fairfax Africa Holdings – a leading global investor, will retain an existing but diluted shareholding in Grobank.

A presence in South Africa will serve as a cornerstone for further momentum in delivering on Access Bank’s mission to be Africa’s Gateway to the World. The proposed transaction is expected to provide access to the largest banking market in Africa and enable Access Bank to consolidate its Southern African and broader African footprint with enhanced capabilities to fulfill the needs of multi-national clients.

Speaking on these developments Herbert Wigwe, GMD/CEO Access Bank said:

We have consistently said that we are focused on building the scale needed to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability. Today’s announcement demonstrates further commitment to delivering our strategic aspirations of becoming Africa’s Gateway to the World in line with our vision to be the World’s Most Respected African Bank.

These transactions will significantly strengthen our presence in Southern Africa and further our footprint for growth in the SADC region. With a broader presence across the continent, Access Bank will be better placed to support our customers who are increasingly looking towards intra Africa growth. The proposed transactions will accelerate the Bank’s momentum towards delivering world-class banking services to an expanded customer base across Africa. Our goal remains to reach and impact 100 million unique customers across the continent.’’

 

 

SUNDAY EKWOCHI

COMPANY SECRETARY

FRC/2013/NBA/00000005528

BIG STORY

Obi Made A Difference In My Campaign, His Endorsement Worth Its Weight In Gold — Akpata

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Olumide Akpata, the Labour Party (LP) governorship candidate in Edo, says Peter Obi’s endorsement of his candidacy is “worth its weight in gold”.

Akpata spoke in an interview on Arise Television on Thursday.

The Edo governorship election is billed for September 21.

On Wednesday, Obi implored the Edo electorate to vote Akpata as their next governor.

He added that if elected, the former president of the Nigerian Bar Association (NBA) would deliver the needed change.

The LP governorship candidate said Obi has made a difference in his campaign.

“Peter Obi is making a whole lot of difference because he is one individual that people trust. People trust him because his word is his bond,” he said.

“People trust Peter Obi because he’s a performer and so his endorsement of my candidacy is worth its weight in gold and so I make no bones about it.

“I will not hesitate to take advantage of the fact that he supports me and those of you who know Obi, he will only associate with a candidate he has confidence in, every confidence in his or her abilities.

“So I’m fortunate, I’m privileged that he’s willing to stand shoulder to shoulder with me on the podium, on various podiums across the state.

“We have been to all three senatorial zones together. He has been very, very magnanimous with his time and with his energy and he has brought that to bear on the campaign process.

“The people are definitely, definitely encouraged by his presence. It gives them reason to believe again. It gives them hope again.”

Akpata asked the Independent National Electoral Commission (INEC) to conduct a credible poll.

“Now with regard to the umpire, the regulator INEC, I am hopeful because there are certain peculiar factors that lend themselves to this process that will hopefully bring about a positive outcome,” he said.

“Firstly, it’s an off-cycle election. So in that regard, we are fortunate and privileged to have the undivided attention of INEC in this state so they can bring together their entire machinery on the process.

“But having said that, I am so concerned because I bother about capacity issues. Right now we’ve heard rumors of that some of the actors are already fighting it out at the INEC centre somewhere in Benin City.

“I’m yet to confirm that. I just read a newsflash that some hoodlums have carted away sensitive materials. Again, yet to confirm that.

“But I am concerned about capacity. I am concerned about the fact that the terrain… I have been around Edo state about five times in this process.

“The roads are in a very deplorable stage, I just wonder to myself, how can INEC manage to get around in these conditions? I just returned from the riverine areas of Edo state.

“I wonder to myself, is the regulator able to access this? Will people not be disenfranchised? You just need to see the conditions of our roads.

“I just returned to Benin from Irrua. It is so difficult to get around. So I am very worried about the logistics of this process.

“So, as you can imagine, we will continue to engage with the operators. We will continue to interrogate the system.”

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BIG STORY

Keyamo Inaugurates Consumer Protection Portal, Charges NCAA To Address Ticket Refund Issues Within 24hrs

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Festus Keyamo, the Minister of Aviation and Aerospace Development, has officially launched the consumer protection portal of the Nigeria Civil Aviation Authority (NCAA) in Lagos.

This innovative portal is designed to provide travelers with a hassle-free way to lodge complaints online and track the resolution process.

Speaking at the launch, Keyamo emphasized the importance of swift action, directing the NCAA to address airline ticket refunds owed to passengers by airlines within 24 hours.

This move aims to alleviate the struggles many passengers have faced in reclaiming funds for flights booked from airlines that are no longer operating.

With this platform, travelers can electronically file complaints, track the resolution process, and monitor the on-time performance of all airlines operating in Nigeria.

“I am not unaware of the complaints of people whose money has not been refunded by certain airlines that have stopped operations due to safety concerns,” Keyamo said.

“I receive a huge number of such complaints in my emails, text messages, and direct messages. I have been a lawyer of the federal republic for over 30 years before I was called to serve my fatherland. People find a way to send these complaints to me and that is why I receive some of these complaints directly.

“For the airlines that have not refunded passengers’ money, there must be a public statement by the NCAA by the end of Friday latest.

“Let the public know what is happening to that money. I know you have resolved that. Let’s not pretend as if we are not hearing anything about this. People bought tickets before the airlines ran into troubled waters. What happened to their money? What plans do you have to refund them? This is part of consumer protection.

“The NCAA should come out with a public statement to show what they are doing about resolving the issue.”

On protecting travellers, Keyamo said the portal is expected to streamline the complaints process and ensure efficiency in the aviation sector.

He commended the NCAA’s leadership, particularly its consumer protection directorate, for the initiative, noting that passenger satisfaction is crucial for the industry’s viability.

“The final thing that we must achieve in the sector is that the person boarding the aircraft must have good experience, must feel the change either in terms of prices, environment or experience. Everybody is working for that final consumer, including myself,” he said.

“Let it be clear that we are all consumer protection officers and it’s not only for those gentlemen and ladies in uniform.

“As a frequent flyer myself, I have seen firsthand, the rage of passengers who are either disappointed by delayed flights, cancellations or some ugly experiences on those flights. I have seen the rage and this is a means by which they can ventilate that rage.”

On his part, Chris Najomo, acting director-general of the NCAA, praised the initiative as a vital step in protecting the rights of aviation consumers in Nigeria.

“In today’s rapidly evolving marketplace, consumers face myriads of challenges. From being unaware of their rights to navigating complex regulations to addressing poor services or unfair practices,” Najomo said.

“Hence, the need for a robust system to protect and empower consumers has never been more critical.”

On July 20, the NCAA announced its plans to launch a consumer protection portal in August to address complaints within the aviation sector.

However, the authority postponed the launch of the portal to September 19.

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BIG STORY

Coca-Cola Announces Plan To Invest $1bn In Nigeria

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Coca-Cola Hellenic Bottling Company says it will invest $1 billion in Nigeria over the next five years.

The investment commitment was made during a meeting with Coca-Cola’s global leadership team, including John Murphy, president and chief financial officer, and Segun Apata, chairman of Nigerian Bottling Company.

Reacting to the development in a statement on Thursday, President Bola Tinubu commended Coca-Cola for its long-standing partnership with Nigeria and for employing over 3,000 people across nine production facilities.

Tinubu said the investment highlights his administration’s commitment to creating a robust financial system and a business-friendly economy.

“We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses,” the statement reads.

“We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that.”

Tinubu said private sector partnerships are crucial to his government’s reforms aimed at improving the business environment.

He pledged to continue to support Coca-Cola for expanding its investments in Nigeria and addressing environmental issues, including climate change.

Murphy, speaking on Coca-Cola’s impact in Nigeria, said the company generates ₦320 billion annually through nearly 300,000 customers and contributes almost ₦90 billion in revenue to the Nigerian government.

“We are very proud of the growth of the business over a long period and its impact on the daily lives of many Nigerians,” he said.

Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, attributed the company’s $1 billion investment pledge to its confidence in the Nigerian government’s policies.

“Mr President, in your inaugural address, we were very pleased to hear of your invitation for foreign investors to invest and your assurance that foreign businesses can repatriate dividends and profits,” the CEO said.

“That assurance gives us the confidence to continue our investments. Since 2013, we have invested $1.5 billion in Nigeria in capacity expansion, transformation of our supply chain infrastructure capabilities, training and development.

“I am very pleased to announce that, with a predictable and enabling environment in place, we plan to invest an additional $1 billion over the next five years.”

Bogdanovic said Nigeria’s potential is tremendous, pledging the company’s commitment to work with the government to realise it.

In November 2021, the beverage manufacturer had pledged to inject $1 billion into Nigeria’s economy.

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