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UBA Hinges Future Performance on Cost Efficiency, Improved Asset Quality

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Pan African financial institution, United Bank for Africa (UBA) Plc has assured its local and international investors that it’s prudent focus on improved asset quality as well as the continuous adoption of strict cost efficient measures will help the bank achieve its objectives and priorities for the 2019 financial year and beyond.

This the bank has said will culminate into an institution with even stronger indices laced with the capacity to churn out strong double-digit growth in annuity-based trade services, enhanced offerings and improved customer service.

Already, the bank has instituted a number of enhanced risk management and control framework which have in no small measure contributed to its financial performances and overall balance sheet growth over the years.

The Group Managing Director/Chief Executive Officer, Mr. Kennedy Uzoka, who noted this in a submission while presenting the bank’s 2018 full year results during an international investor/ analysts conference call on Thursday, explained that UBA’s well diversified asset book supported by stable funding structure, placed it in a premium position to perform remarkably despite the falling economic indices in its operating environment.

He said, “In spite of slow recovery in economic activities in Nigeria (our single largest market), the Group’s total assets has grown by 19.7%, driven largely by a strong deposit growth of 23%, as the drive for retail deposits continue to yield desired results. Leveraging on enhanced customer service, the Group grew retail deposits by 48%, thus strengthening the funding base and providing the foundation for lower cost of funds in 2019.

“Notably, the growth in balance sheet also partly reflects the impact of exchange rate difference between the reporting dates (2017: N331/USD vs. 2018: N359/USD), as 37% of loans and 27% of overall balance sheet is FCY-denominated. The Group maintained its appetite for a well-diversified balance sheet, with over 60% in liquid, low risk instruments.”

Uzoka explained to the investors that the bank recorded impressive growths achieved across major financial lines, recording a 48 percent year-on-year growth in retail deposits and improved CASA ratio to 77 percent.

In its results for the year end December 2018, UBA gross earnings grew by 7.0 percent to N494.0 billion, compared to N461.6 billion recorded in the corresponding period of 2017. The Bank’s total assets also grew significantly by 19.7 percent to an unprecedented N4.9 trillion for the year under review

Throwing more light on the financials, he stated that gross earnings grew by 7% year-on-year, despite regulation and market conditions undermined the non-interest income line. Interest income, which contributed 73% of gross earnings, grew by 11%, driven by strong interest income on treasuries, reflecting the low-risk appetite and treasury-led strategy adopted during the year. He noted that the lower non-interest income was occasioned by market condition and regulatory impact on FX trading income, adding that growing volume on FX trading is compensating for lower margin on this business, thus reinforcing our positive growth expectation on this income line in 2019.

While speaking on the strength of the financial institution in the coming years, especially on the back of it’s African and non-African subsidiaries, Uzoka said the bank’s recent foray into key markets and economies remain a milestone that will catapult the institution in the coming years.

He said, “UBA is a unique pan-African franchise with diversified risk and earnings across fast growing African economies with sound governance, risk management and compliance culture which can be seen from our adherence to international best practice. Our robust digital banking platform through which we are leveraging technology to serve over 15 million customers in a cost efficient approach that has helped to deepen African banking penetration.

“We have the strong financial capacity backed by high capitalization (BASEL II capital ratio well above requirement) and strong liquidity, and we have worked hard towards connecting Africa and the world through our presence in key African markets and major global financial centres such as New York, London and Paris.”

BIG STORY

Stop Making One-Term Commitments, Nobody Believes You — El-Rufai To Obi, Amaechi

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Nasir el-Rufai, former governor of Kaduna State, has called out Peter Obi and Rotimi Amaechi for pledging to serve only one term if elected president, arguing that such promises are dubious and not credible. He made his remarks on Sunday Politics, a Channels Television program.

Obi, the Labour Party’s 2023 presidential contender, has consistently stated that four years is sufficient to reset the nation, even stating that “purposeful leadership is not defined by how long one stays in office, but by the impact made.” Amaechi, too, has offered to serve for a single term under the African Democratic Congress (ADC), suggesting rotation could benefit political stability.

In response, el-Rufai countered: “I don’t think anyone believes [one-term promises]. You should not constitutionally give up what is yours. And frankly, as someone who has been governor for eight years—and Amaechi and Peter Obi have both been governors—they know the time it takes to make meaningful change in government. Four years is not enough.”

He continued: “So, I want to appeal to everyone to stop making these commitments of ‘I will do four years’ or ‘I will do eight years’, because nobody believes you.”

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BIG STORY

Sextape-Tainted Equatorial Guinea Official, Baltasar Engonga, Bags 8-Year Jail Term For Embezzlement

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A court in Equatorial Guinea has sentenced Baltasar Ebang Engonga, a senior government official, to eight years in prison for embezzlement, following months of notoriety over leaked sex tapes involving him and the wives of other officials.

According to the country’s supreme court press office, the Bioko provincial tribunal found Engonga guilty of diverting public funds by claiming false professional travel expenses. The funds, worth hundreds of thousands of dollars, were instead used for personal benefit.

Engonga, widely known by his nickname “Bello”, was formerly head of the national financial investigation agency. He and five other senior officials faced charges of embezzling large sums in the oil-rich Central African nation.

In November 2024, Engonga made international headlines after sex tapes — some reportedly recorded in his finance ministry office — surfaced on social media while he was already in detention. The scandal sparked widespread online parody, including satirical songs, dances, and memes referencing a spoof virility drug dubbed “Balthazariem.”

The court also imposed a fine of $220,000 in addition to his prison sentence.

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BIG STORY

Nigeria’s Non-Oil Exports Hit $3.23 Billion In H1 2025 — NEPC

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Nigeria’s non-oil exports reached $3.225 billion in the first half of 2025, reflecting a 19.59% growth from $2.696 billion in the same period of 2024, according to the Nigerian Export Promotion Council (NEPC).

The NEPC Director-General, Nonye Ayeni, announced this in Abuja on Sunday while presenting the H1 2025 Non-Oil Export Performance Report.

She stated that export volumes rose to 4.04 million metric tonnes in H1 2025, compared to 3.83 million metric tonnes during the same period last year.

Ayeni recalled that Q1 2025 exports alone were valued at $1.791 billion, representing a 24.75% increase from $1.436 billion in Q1 2024, while volumes grew by 24.3% to 2.416 million metric tonnes.

She revealed that Nigeria exported 236 different products in the first half of the year, representing a 16.83% increase from the 202 products exported in H1 2024.

The exports consisted of agricultural commodities, extractive industry products, manufactured goods, and semi-processed items. Ayeni observed that non-oil exports are shifting from traditional agricultural goods towards higher-value semi-manufactured products.

Based on data from Pre-shipment Inspection Agents (PIAs), cocoa beans ranked first among the top 20 products exported in the first half of 2025, accounting for 34.88% of the total export value compared to 23.18% in 2024.

Urea/fertiliser followed in second place with 17.65%, up from 13.78% in the same period of 2024.

Ayeni attributed part of the growth to the African Continental Free Trade Area (AfCFTA), which she said has expanded market access and lowered tariffs for Nigerian exporters.

She also pointed to NEPC’s intervention programmes — covering quality, standards, packaging, export documentation, and certifications — as vital to supporting export expansion.

According to her, rising demand from emerging markets such as India, Brazil, Vietnam, and various African countries has also contributed to the increase in non-oil exports.

She noted that the rise in value-added exports has enhanced earnings as more Nigerian exporters adopt product transformation before shipment.

Ayeni restated NEPC’s dedication to working with the Ministry of Industry, Trade, and Investment, along with other stakeholders, to further grow export value and volume in line with the President Bola Tinubu administration’s Renewed Hope Agenda and the ministry’s policy objectives.

 

Credit: Nairametrics

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