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Access Holdings Plc Reports Strong FY2023 Financial Performance, Grows PBT By 335%, Earnings To N2.59 Trillion

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Access Holdings Plc (“The Group”) has announced its audited Consolidated and Separate Financial Statements for the year ended
December 31, 2023. In the year under review, the Group recorded a robust growth in its Profits Before Tax, posting a healthy N729 billion, representing 335% year-on-year (YoY) increase from 2022.

Access Holdings’ Gross Earnings also surged by 87% YoY to N2.59 trillion, up from N1.38 trillion in 2022. This remarkable growth was primarily driven by a 100% increase in interest income and a 67.9% growth in non-interest income. The Group’s Net Interest Income also demonstrated strong performance, soaring by 93.5% YoY to N695.4 billion, compared to N359.6 billion in the previous year. The yield on earning assets also rose remarkably from 9.2% in 2022 to 12.8%.

Access Holdings’ Loans & Advances expanded by 60.5% YoY to N8.9 trillion, accompanied by an improvement in the Non-Performing Loan Ratio, which decreased to 2.8% from 3.2% in 2022. The Group closed the year with N2.18 trillion in Shareholders’ Funds, marking a significant 77.5% growth from N1.23 trillion in FY 2022.

Commenting on the performance, Bolaji Agbede, Acting Group Chief Executive Officer, Access Holdings Plc, said: “The Group’s strong performance in 2023 reflects our commitment to delivering value to our shareholders and stakeholders amidst challenging operating environments.

The significant growth in our earnings is a testament to the resilience, strategic focus, and efficiency of our team, and reflects the diversity of our offering across banking, pension, insurance, and payments driven by robust risk management, best-in-class corporate governance, and cutting-edge technology. As we look ahead, we remain committed to driving sustainable growth, consolidating our footprint, and accelerating the attainment of our 2027 strategic objectives.”

Access Holdings’ regulatory ratios strengthened in 2023 as Capital Adequacy Ratios for the Group, and its flagship subsidiary, Access Bank, stood at 19.01% and 21.09%, respectively. The Liquidity Ratio remained robust at 51.8%, well above the regulatory threshold. Roosevelt Ogbonna, Managing Director/CEO, Access Bank remarked on the Bank’s accomplishments, saying: “As we reflect on the results of 2023, characterised by robust growth, strategic acquisitions, and expansion into key trade hubs, I am excited about the
prospects for Access Bank. Our relentless focus on customer-centricity, digital www.accessbankplc.com innovation, and operational excellence has positioned us strongly to capitalise on emerging opportunities. As we enter the consolidation and efficiency phase of our Africa and international expansion strategy, we remain committed to driving sustainable growth, enhancing shareholder value, and delivering exceptional banking experiences to our customers across Africa and beyond.”

Access Holdings’ other subsidiaries also posted strong results, as Access Pensions Limited recorded a 75% growth in gross revenues, amounting to N12.3 billion, while Hydrogen Payment services posted an operating income of N2.1 billion and a PBT of
N161 million.

Access Holdings Plc acquired Megatech Insurance Brokers Ltd. (now known as Access Insurance Brokers Ltd.) and successfully completed a US$300million capital injection into Access Banking Group, which acquired several entities including Finibanco Angola
S.A., and select Standard Chartered Bank operations in Africa.

Access Bank’s UK subsidiary also opened a branch in Paris and received regulatory approval to commence operations in Hong Kong.
The Group has proposed a final dividend of N1.80 kobo per share for the 2023 financial year, bringing the total dividend payment to N2.10 kobo per share with a total value of N74.6 billion.

Reiterating his confidence in the organisation’s resilience, Aigboje Aig-Imoukhuede, Chairman, Access Holdings, said: “As we navigate this transformative period, we remain confident in the leadership of the Group to continue this upward trend and set the standard for financial service groups in the continent. Access Holdings has a rich history of excellence, and we will continue to deliver unparalleled value to our stakeholders.”

Commencing in the second half of 2024, the Group’s Africa and international expansion strategy will enter the consolidation and efficiency phase, aligning with the institution’s five-year plan to accelerate the attainment of its 2027 strategic objectives. www.accessbankplc.com

Access Holdings Plc

Access Holdings Plc (‘the Company’) operates through a network of more than 700 branches and service outlets, spanning three continents, 21 countries and serving over 60 million customers. The Company serves its various markets through four subsidiaries across the banking, payment, pension administration and insurance sectors through four operating companies, viz: Access Bank Plc, Hydrogen Payment Services Company Limited, Access Pensions Limited and Access Insurance Brokers Limited.

Access Bank Plc serves its various markets through four business segments – Retail Business, Commercial and Corporate, and has enjoyed what is Africa’s most successful banking growth trajectory in the last twenty years. Following its merger with Diamond
Bank in March 2019, Access Bank Plc became one of Africa’s largest retail banks by customer base and the Nigeria’s largest bank by total assets.

Hydrogen, the payment company, leverages the strong suite of the Bank’s existing assets and customer base, creating a super fintech that will be Africa’s most powerful business services network. Hydrogen being a company of African heritage has a clear understanding of the unique payment challenges across the continent and is positioned to address these challenges with its offerings. Its range of products and services, such as InstantPay, Payment gateway, POS services, Card and Switch processing are gaining traction in the marketplace while addressing the unique needs of customers.

Access Pensions Limited became a subsidiary of Access Holdings following the acquisitions of the former First Guarantee Pension Limited and Sigma Pensions Limited and their subsequent merger. The merger created the fourth largest Pension Fund Administrator in Nigeria by total assets with over 1million customers. As one of Nigeria’s leading Pension Fund Administrators (PFA), Access Pensions Limited will leverage key relationships and a growing ecosystem across Africa to unlock greater opportunities for the more than 60 million retail customers.

Access Insurance Brokers Limited is a company licensed by the National Insurance Commission which provides intelligent solutions that mitigate the unique risks faced by individuals and business in an ever-changing world using leading risk management tools and governance standards. Access Holdings Plc strives to invest in businesses that are committed to sustainable practices and have a positive impact on the environment.

BIG STORY

Enugu LGA Chairman Appoints Aides On Garden Egg, Pepper, Yam

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Eric Odo, chairman of Igbo Etiti LGA in Enugu state, has appointed Ezeugwu Ogbonna as senior special assistant on agriculture (yam and pepper).

The appointment was formalized in a letter dated November 1, addressed to Ogbonna.

“I am pleased to inform you that the executive chairman Igbo Etiti LGA has approved your appointment as senior special assistant to the local government chairman on agriculture (yam and pepper),” the letter states.

“You should report to the executive chairman Igbo Etiti LGA, Ogbede, for briefing and deployment,” it continues.

“It is pertinent to note that this is not a career civil service appointment but a temporary appointment which you hold at the pleasure of the executive chairman of Igbo Etiti LGA,” the letter further clarifies.

Odo also appointed Nwodo Ugonna as special adviser on garden egg and pepper.

The council chairman did not specify the exact duties of the appointees.

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BIG STORY

NNPCL Admits Challenges Delaying Port Harcourt Refinery Take-Off

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Barely two months after the September completion deadline flop, the Nigerian National Petroleum Commission (NNPC) has explained why it could not deliver the much-awaited Port Harcourt Refinery Company.

In an interview (with The Punch) on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said the company encountered risks and challenges while carrying out the rehabilitation, being a brownfield project.

He noted that the NNPC began the commissioning of critical equipment and processing units after the mechanical completion in Nigeria.

“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.”

“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” he stated.

Nonetheless, he told (The Punch) that the issues were resolved and commissioning activities have resumed.

Soneye stressed that work is being carried out to ensure the project’s completion.

“These issues have since been effectively resolved, and commissioning activities have resumed.”

“Work is being carried out around the clock to ensure the successful completion of this critical project,” he told our correspondent.

Asked if there is any timeline for the completion of the project, he replied, “Shortly.”

It was observed that the NNPC desisted from giving new deadlines for the delivery of the refinery, having failed to meet its deadlines seven times.

The moribund Port Harcourt refinery is one of three owned by the Federal Government and managed by the NNPC.

Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.

The NNPC said last week that it would continue to import fuel, saying it was not the sole off-taker of petrol at the Dangote refinery.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.

It was gathered that promises made to Nigerians by the Federal Ministry of Petroleum Resources and the NNPC about the refinery have continued to hit brick walls.

After the failure of the sixth deadline in early August, the then Chief Financial Officer of the NNPC, Umar Ajiya, said the refinery would commence operations in September 2024.

However, September ended without a word from the NNPC about the refinery, and Nigerians have been left in the dark since almost two months ago.

Recall that the contractor overseeing the rehabilitation of the Port Harcourt refinery, Maire Tecnimont SPA, refused to disclose the completion date for the project, despite a formal request from a human rights lawyer, Femi Falana.

Apparently baffled by the delay in the completion of the project, Falana had filed an official request under the Freedom of Information Act, seeking clarity on the date set aside for the project completion.

In response, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro, a partner at Olajide Oyewole LLP, sent a letter to Falana in early October, declining to reveal the information.

Ogungbenro stated that the Managing Director of Maire Tecnimont SPA, as part of an independent private contractor, is not obligated to disclose such information under the FOI Act.

“We are counsel to Maire Tecnimont SpA, and we have our client’s instruction to respond to your letters dated 17 and 24 September 2024 requesting information on the contract between our client and Nigerian National Petroleum Company Ltd.

“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions or utilise public funds for them to be bound by the obligations in the Freedom of Information Act.

“On this ground, our client regrettably cannot provide the information you have requested,” Ogungbenro declared.

Since then, information about the refinery has been kept from the public, whose hope for cheaper petrol lies in the facility.

From December 2023, NNPC had been giving Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon, having attained mechanical completion.

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August. He had said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration last year.

When he appeared before the Senate in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna; but that of Port Harcourt will commence production early August this year.”

However, the promise was not fulfilled in August which was the sixth postponement.

Though the NNPC said it was on course, the refinery has yet to commence operations even as the fourth quarter of the year nears the end.

Recall that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December. It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

Later in January, Kyari said the refinery was being tested and would be ready by the end of the first month.

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the facility, raising the expectations of marketers that production would soon start.

This came a few weeks after the NNPC said in January that it was seeking to engage reputable and credible operations and maintenance companies to run the refinery.

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

As the April deadline elapsed, independent petroleum marketers told (The Punch) that the facility would begin production by the end of July.

Commenting on this then, NNPC’s spokesman, Soneye, said that regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

 

Credit: The Punch

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BIG STORY

I Was Tinubu’s Aide For Only Six Months, And I Worked For Free — Fela Durotoye

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Fela Durotoye, a Nigerian public speaker, says he worked in the administration of President Bola Tinubu for just six months without receiving a salary.

In October 2023, Tinubu appointed Durotoye as senior special assistant on national values and social justice.

Following Tinubu’s appointment of Daniel Bwala as special adviser on public communications and media, some Nigerians on social media criticised the president for appointing a plethora of media aides without considering the cost of governance.

In a 13-man list that went viral on social media, Durotoye was named as one of the media aides to the president.

In an opinion piece published on Monday, Durotoye clarified that his appointment as aide to the president ended in March 2024.

He added that throughout the six months of his appointment, he didn’t receive any salary, allowance, or upkeep as a government official.

“Like many other issues in the public discourse, social commentary often has the tendency to overgeneralise; and broad assumptions may sometimes lead to errors of misconceptions, misstatements and misinformation,” Durotoye said.

“One of such errors is in a recent case study that went viral on social media regarding the current media team of the president, where my name was listed as one of the president’s media aides. Unfortunately, this statement needs to be updated to accurately reflect the current media team of the president.”

“For clarity, I served briefly in the role of Senior Special Assistant to the President on National Values and Social Justice (SSA-NVSJ) for a tenure of six months, from October 2023 to March 2024.”

“When I was invited to serve in this administration, I expressed, as a condition for accepting the call, my desire to NOT receive a salary from the government, as I considered this to be my service to my nation.”

“When I finally accepted the role in October 2023, it was on the condition that I would not receive any salary or allowances. During my six-month tenure, I did not accept any government funds for my service, expenses, or upkeep.”

“I rented my apartment and took my personal car to Abuja. My utility cost, fuel cost and upkeep were all borne by me and I never requested a reimbursement from the government for any expenses I incurred. Everything I contributed—time, effort, and resources—was paid for by me and my family.”

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