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Heritage Bank’s 8 Years Journey Of Entrenching Business of Banking In Nigeria

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Today marks a worthy milestone in the life of one of the fastest-growing financial service providers, Heritage Bank Plc as it celebrates eight (8) years of entrenching seamless service delivery in the business of banking in Nigeria.

This is a journey that began eight (8) years ago, premised on passion, commitment, doggedness, culture, and hard work amongst others stands today as a reputable financial organization in the Nigeria banking space.

The story began in 2012; a story of hard work and determination when Heritage Bank Plc emerged from a business combination of Heritage Banking Company Limited (HBCL) and Enterprise Bank Limited (EBL) after the acquisition of Societe Generale of Nigeria’s (SGBN) license by IEI Investment Ltd from the Central Bank of Nigeria (CBN) having met all requirements by Nigeria’s apex bank.

Heritage Bank returned 100% of existing SGBN account holders’ funds which were frozen at the closure of the SGBN. This move brought a lot of smiles to the faces of former account holders and inspired many of them to open new accounts with Heritage Bank. 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% shares in Enterprise Bank Ltd., after a highly competitive bid process.

This development firmly anchors the Heritage Bank in a rich legacy of technology and innovation in the banking industry. SGBN, which was incorporated in December 1976 and commenced full banking operations in August 1977, pioneered the introduction of e-banking services including its flagship, the 24/7 Cashpoint through the Automated Teller Machines (ATMs) in 1990.

With management focused on innovation through technology and a unique philosophy to create, preserve and transfer wealth to its customers, Heritage Bank found itself in a fiercely competitive banking environment but it remained guided by passion, resilience, innovation, and brand architecture that exuded quality service, performance, and sheer excellence.

Still, as big a move as it was, it remained just one of the many strategic moves to change the banking industry and Heritage Bank has made a lot of them and attains giant strides in reshaping the economy since it began operations in 2013 to drive improved investment outcome and job creation.

Success stories of entrenching business of banking in Nigeria:

As a catalytic financial institution, Heritage Bank, through its strategic partnerships with government and private organizations, has continued to make efforts to transform the nation’s economy through championing entrepreneurial schemes for businesses and the micro, small and medium enterprises (MSME) sector was not left out, which have always focused on dependable job-creating sectors, such as education, agricultural value chain (fish farming, poultry, snail farming), cottage industry, mining, and solid minerals, creative industry (tourism, arts and crafts), and Information and Communications Technology (ICT).

In recent times, the bank’s response to dealing with the global economic challenge occasioned by COVID-19, which highly impacted SMEs, Heritage Bank PLC has continued to deepen its support to young entrepreneurs in Nigeria to grow their businesses either as start-ups or prospective business owners.

One of such is the last season of the reality TV show The Next Titan, themed “The Unstoppable” that was designed to search for business ideas that are immune to any pandemic, innovations that break boundaries, and technologies that can survive any lockdown. This programme produced a young vibrant entrepreneur, a graduate of the Federal University of Technology Owerri with a Bachelor Degree in Environmental Science who is the Chief Executive Officer of Josult Oil Processing Company, a palm oil processing company in Akwa Ibom State, Joshua Joseph Idiong, as he finally emerged the winner of the Next Titan Season-7, going home with a whooping sum of N10million.

Furthermore, Heritage Bank PLC in partnership with the Honourable Fatima Mohammed (FAMO) Foundation also provided succor to over 300 affected private school teachers and small-medium enterprises (SMEs).

Heritage Bank has continued to blaze the trail on the SME’s space to empower young entrepreneurs in such schemes as the HB Innovation Lab Accelerator programme (HB-LAB), Ynspyre Account, Youth Innovative Entrepreneurship Development Programme (YIEDP), Centre for Values in Leadership (CVL) on Young Entrepreneurship Business Training Programme (YEBTP), Young Entrepreneurs and Students (YES) Grant and Nigerian Youth Professional Forum (NYPF), Big Brother Nigeria, Lagos Comic-Con, among others.

Last year witnessed the Launch of the Nationwide Dukia-Heritage Bank Gold & Precious Metals which stands to create new opportunities for Nigeria to grow its potential reserves of 200 million ounces of gold.

The Nationwide Dukia-Heritage Bank Gold & Precious Metals Buying Centre will fast-track the 10 per cent contribution of the mining sector to GDP by 2026. Referring to these giant strides, Prof. Yemi Osinbajo remarked that the launch of this project between Heritage Bank and ‘Dukia Gold SPV’ would enable Nigeria to mine reserves properly, trade responsibly, refine locally and boost the nation’s foreign reserves.

Heritage Bank has continued to support Nigeria’s aspiration and roadmap to become a leading Information Communication Technology (ICT) Hub in Africa, The Bank doled out the sum of $40, 000 grants to winners of the maiden edition of HB Innovative Lab.
The bank’s commitment is to create enabling environment, resources, and support required to innovate and accelerate impactful solutions with the potential to radically improve financial inclusion/intermediation, health, automobile, agriculture, and other related problems affecting critical sectors of the economy.

For the bank’s giant stride of support to tourism, Federal Government commended Heritage Bank for its commitment to the development and growth of the creative industry.
Minister of Information and Culture, Alhaji Lai Mohammed, gave the commendation at a two-day Creative Nigeria Summit.

The bank, aimed at boosting Nigeria’s tourism via the creative arts industry supported the sponsorship of exhibition at the National Museum Benin, at the Exhibition Gallery of National Museum Benin by the National Commission for Museums and Monuments (NCMM), in collaboration with the Edo State Government, and the Smithsonian Institute, United States of America.

Also, efforts are being taken by Heritage Bank Plc and the River State government during the National Festival of Arts and Culture (NAFEST) to make art and culture a unifying factor and major earner to the contribution of Gross Domestic Product (GDP) of the country.

Heritage Bank Plc partnered with the organizers of the International Festival of Contemporary Dance (IFCOD) to host the second edition of One Language, a musical production of intrigue, dance, and drama.

Most prominent of its partnership and supports is the annual Calabar Carnival and festival, tagged “Africa’s Biggest Street Party,” was created as part of the vision of making Cross River State the number one tourist destination for Nigerians and other tourists across the world.

Heritage Bank is not done yet. The bank went further to prove its trend-setting profile by driving the seat of the agricultural financing revolution.

In a bid to support the real sector and unlock food potentials, Heritage Bank Plc provided over N5billion long-term facility under the Commercial Agriculture Credit Scheme (CACS) to Triton Aqua Africa Ltd (TAAL).

TAAL known as Triton Farm accessed the CACS through Heritage Bank, which was used to set up aquaculture businesses; nursery/hatchery to produce fingerlings and broodstock in Ikeja and earthen ponds for catfish and Tilapia in Asejire, Iwo, and Gambari towns in Oyo State.

Under the arrangement, TAAL will also help small-scale farms increase their fish production by making fingerlings available to them.

In the short term, the loan is expected to help Triton double its current production capacity of 25,000 metric tonnes with a projection to scale it up to 100,000 metric tonnes in five years.

The bank also has thrown its weight behind Globus Resources Limited, a subsidiary of Triton Group, to flag off the second phase of the afforestation programme in Oyo state.

Nigeria’s demand capacity for fish was estimated at 2.7million metric tons and the country currently produces 800,000 metric tons.

Triton is now producing over 25,000 metric tons and with them on board, over 25,000 metric tons capacity will be added to our current production, the company’s projection is to exceed 100,000 metric tons in 5years.

In the state level, Heritage Bank entered into a partnership with the Oyo State government in a multi-billion-naira project to give agriculture a boost.

Under the initiative, the bank supported the Oyo State Agricultural Initiative, OYSAI, a programme designed to revive agriculture, boost agro-allied businesses, and massive empowerment programme for both youth and women across the state through the creation of thousands of jobs in the sector.

This huge, albeit laudable, project that is spread across 3,000 hectares of land in 28 of the 33 Local Government Areas of Oyo State is in three stages: food crop cultivation, cash crop/horticulture, and food processing.

Heritage Bank is supporting agro investors involved in this initiative with funds and advisory services and indications are that the programme has already led to more than 30 per cent increase in food production in the state.

The Bank also supported thousands of smallholder farms in Kaduna and Zamfara states to benefit from the bank’s financial support for rice and soya beans production under the Central Bank of Nigeria’s Anchor Borrowers Programme (ABP).

Further, on job creation, Heritage Bank through its establishment of a full-fledged learning and development institute accredited by the Chartered Institute of Bankers of Nigeria (CIBN), dubbed “The Refinery” successfully trained and employed about 300 new intakes.

In the midst of the bank’s audacity to dare and succeed, industry watchers have continued to ask; how are they doing it? The answers may not be far from the fact that this is one bank whose leadership team continues to exude the charisma of the Midas touch. With Heritage Bank, the MD/CEO, Ifie Sekibo has proven over and over again that whatever he touches, turns into gold.

BIG STORY

Oil Marketers Project N950 Per Litre As Dangote Slashes Petrol Price

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Oil marketers operating under the Independent Petroleum Marketers Association of Nigeria have forecast a reduction in the retail price of Premium Motor Spirit, commonly known as “petrol,” to N950 per litre in Lagos State.

It also indicated that customers in the Federal Capital Territory may pay N990 per litre.

The IPMAN National Publicity Officer, Chief Chinedu Ukadike, shared this insight during an interview with our correspondent, emphasizing that the product will now be priced below a thousand naira.

He stated, “Once there is a price reduction, it will trickle down. There will be a change to the pump price. It will be less than N1,000. But the difference will be determined by location. It may be N950 in Lagos and possibly N990 in Abuja. Logistics will play a key role. Remember that the price of “diesel” hasn’t reduced and that is what we put in our tankers.”

This anticipated price decrease follows the decision by the Dangote Petroleum Refinery to lower its ex-depot price to N899.50 per litre.

The new price is the second reduction within a month and a decrease of N71 or seven.per cent from the previously adjusted price of N970 per litre on November 24.

Earlier on Thursday, a statement by the Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, announced the introduction of a special petrol price offer to benefit Nigerians.

In addition to the holiday discount, it said customers are now allowed to purchase an additional litre of fuel on credit for every litre bought on a cash basis.

The refinery offered a price of N899.5 (cash payment) for two million litres and a matching two million litres on a Bank Guarantee valid for 15 days (Access, Zenith & First Bank) from the N970 per litre announced by the company last month.

It also proposed an N895 (cash payment) for 10 million litres and a matching 10 million litres on a BG valid for 15 days (Access, Zenith & First Bank).

It said the reduction is to provide much-needed relief for Nigerians ahead of the holiday season.

Chiejina said, “To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.”

The refinery also expressed its gratitude to Nigerians for their continued support as the country enters the festive season.

Chiejina further emphasised the refinery’s commitment to ensuring Nigerians have access to premium quality petroleum products that are competitively priced, as well as environmentally and engine friendly.

He highlighted that the refinery’s operations mark the end of Nigeria being a dumping ground for substandard and ‘blended’ imported products, which have posed significant risks to human health, machinery, and the environment.

He noted, “The Dangote Refinery, with a capacity of 650,000 barrels per day, is the largest single-train refinery in the world. It is fully capable of meeting 100 per cent of Nigeria’s refined petroleum product requirements, with a surplus available for export.”

Last week, the Independent Petroleum Marketers Association of Nigeria sought a reduction in the price of petrol from the refinery.

The group urged the Dangote refinery to consider reducing its ex-depot price from N970 per litre since the estimated cost of landing petrol on Nigeria’s shores has dropped to N900.28 per litre.

Reacting to the new price change, the IPMAN Chairman, Abubakar Maigandi, said the gesture was expected and will reduce the retail price of petrol once offtaking begins.

Abubakar, in an interview with Arise TV, said, “What Dangote has done is what we have been expecting. My marketers are very happy about the reduction, which they have put at the rate of N899.50 per litre for those who are buying two million litres and those buying above 10 million litres will also have their reduction. This is a welcome development. We are happy because we know that the masses will enjoy the benefits.

“We have been telling Nigerians to exercise patience; we knew the price would drop, and we all are seeing it now little by little. The offer to get one million on credit after purchasing two million is also welcome.”

On the reduction of the retail price, he noted, “Once we start picking up products, we are going to change our price so that the consumer will enjoy the benefit.

“Our major challenge was the cost of products from Dangote, so I assure you that with this, all transportation and economic activities will change, especially because transportation is a major driver, and we hope to resolve it with this new change. Now, there is no need to import products from outside the country.”

Also speaking, the Petroleum Products Retail Outlets Owners Association of Nigeria applauded the management of Dangote refinery for slashing the ex-depot price of PMS to N899.50 per litre.

According to the National President of PETROAN, Dr Billy Gillis-Harry, “The price reduction will alleviate the suffering of Nigerians and reduce the cost of living and transportation during this festive period.”

Harry commended the Nigerian National Petroleum Company Limited for ensuring sufficient PMS stocks during the yuletide season. However, he urged NNPCL to revisit its PMS selling rate to foster competition in the downstream sector.

“The reduction in petrol prices by Dangote Refinery has shown that competition can benefit consumers,”

Harry emphasised, “We call on NNPCL to facilitate the privatization of the Port Harcourt Refinery, which will introduce innovative consumer incentives, improve product quality, and enhance service delivery.”

Speaking further in an interview with our correspondent, the PETROAN President stated that its members, empathetic to the suffering of Nigerians, have lowered their prices at retail outlets to nearly N900.

Gillis-Harry said the gesture is intended to demonstrate their leadership in the downstream sector and ensure an adequate supply of petroleum products for Nigerians during the Yuletide season.

He said, “PETROAN members and leadership have reduced their price to almost N900 in several stations even before the Dangote reduction. When we made a strategic agreement with Dangote, even when we hadn’t concluded the whole process. We already know that the PMS and other products will be reviewed and reduced. PETROAN is leading the way to ensure fuel sufficiency and availability. We are making the sacrifice to show our leadership and provide relief for Nigerians.”

Meanwhile, the NNPCL has faltered in its mandate to deliver 385,000 barrels of crude to Dangote Refinery in the month of December, a new report by Argus has stated.

It said the national oil firm only supplied around 202,000 barrels per day in December.

The report further noted that the ramp-up of production at the 650,000 b/d Dangote refinery, likely to occur next year, will affect West African crude trade flows in 2025.

“The refinery remains well below full capacity for now, with estimated deliveries averaging just under 260,000 b/d since March, but Nigerian operator Dangote Group is aiming for 350,000 b/d throughout the first phase of operations.

“When this takes place, and Dangote makes full use of its 385,000 b/d monthly allocation deal with state-owned NNPC, it will affect the amount of Nigerian crude left to be exported to the country’s key outlet – the European market,” it stated.

Although NNPC only supplied around 202,000 b/d in December, the total volume under the deal is equivalent to around a quarter of Nigeria’s crude and condensate monthly exports.

“The deal will eventually bring support to Nigerian crude differentials when European demand is stronger or at least cushion the decline when demand is weaker,” it added.

As Dangote ramps up operations, the refiner could widen its crude slate, which could also affect crude trade flows.

The refinery will take receipt of a 2m barrels cargo of US light sweet WTI bought from Chevron via a tender that closed in November, after a three-month hiatus related to credit issues.

The report noted that Dangote has so far run exclusively on Nigerian crude and WTI, but Nigerian banks eased restrictions on the provision of trade finance to the refiner, which could open the door for possible purchases of non-Nigerian West African crude.

Sources close to the refinery point to Angolan heavy and medium sweet grades as likely to become part of the refinery’s basket intake.

Market participants also pointed out that the recent WTI tender might signal Dangote’s attempt to increase run rates.

 

Credit: The Punch

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BIG STORY

BREAKING: Dangote Refinery Slashes Petrol Price To N899.50

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Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) to N899.50 per litre, offering relief to Nigerians as the holiday season draws near.

This follows a previous price cut to N970 per litre on November 24. The latest reduction is aimed at alleviating transportation costs during the festive period, when travel expenses typically rise for many Nigerians.

The announcement was made in a statement issued on Thursday by Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group.

 

More to come…

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BIG STORY

2025: LCCI Warns Businesses, Says Prepare For More Stress Next Year

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The Lagos Chamber of Commerce and Industry (LCCI) says Nigerian businesses may likely face greater challenges in the new year, urging them to prepare for “more stress.”

In a statement on Monday, Chinyere Almona, LCCI’s director-general, said businesses are likely to face higher interest rates when the next Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting holds.

“The persistent rise in the inflation rate, reaching a 28-year record high of 34.60 in November, continues to fuel a tense business environment as elevated prices constrain various business operations,” Almona said.

“The Lagos Chamber of Commerce and Industry (LCCI) is particularly concerned because, with the persistent and unabated rise in inflation, businesses should prepare for more stress from the burden of higher interest rates as we enter the new year.”

“With the raging inflation rate, the unsuccessful attempt of the Central Bank to reduce the currency in circulation, and approaching a high-spending festive period, we are set to contend with even higher interest rates as the expected outcome from the next decisions by the CBN Monetary Policy Committee (MPC).”

Almona explained that a high inflation rate has significant implications, including reduced consumer spending.

She said it negatively impacts the economy by reducing disposable income, increasing business costs, and discouraging investments, ultimately threatening economic growth.

‘FOREIGN DIRECT INVESTMENT IN NIGERIA DROPPED TO $103.82M IN Q3 2024’

According to the statement, foreign direct investments (FDIs) in Nigeria dropped to $103.82 million in Q3 2024, making the country less attractive to investors.

Almona said interest rates have had limited success in curbing inflation, but reforms aimed at boosting production have shown some promise.

She expressed hope that the reforms would eventually have a stronger impact on key indicators such as inflation, interest rates, and exchange rates.

The director-general said a coordinated effort is required to drive oil production to earn more forex, which is needed to defend the naira in the short term.

“The new investments recently entering the oil fields can be well supported with a sound regulatory environment to sustain and attract more,” she said.

“A disappointing negative record of our capital importation at $1.25bn during the third quarter of 2024 compared with $2.60bn recorded in the preceding second quarter of the year points to an unattractive environment for investors.”

“Foreign Direct Investment, the most critical investment that shows long-term investor confidence, accounted for only $103.82m, or 8.29 percent.”

Almona added that the fight against terrorism and crime must be sustained to ensure the safety of farmlands.

She noted that the rising costs of food, energy, housing, transportation, and services are driving inflation, worsening economic conditions, and reducing both purchasing power and business profitability.

However, Almona stated that the LCCI believes ongoing reforms have the potential to deliver significant benefits, enabling the economy to return to a growth path and achieve positive outcomes for critical economic indicators, provided they are sustained.

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