By Dipo Olowookere

The Bank of Industry (BoI) has taken a significant move to deepen its sustainability finance proposition in Nigeria with a Memorandum of Understanding (MoU) with FSD Africa.

This partnership will see FSD Africa providing technical assistance, strategic guidance, and capacity development initiatives to the lender.

A statement made available to Business Post disclosed that this would involve supporting the bank in strengthening its sustainability strategy, delivering decarbonisation pathways and advancing its adaptation finance initiatives.

These resources will better position BOI to offer tailored lending solutions and business support for Nigerian climate-focused projects, further solidifying its position as a key driver of green finance in the country.

It was stated that the partnership represents the beginning of a transformative journey, creating a framework for innovative and impactful collaboration.

BoI and FSD Africa have reaffirmed their shared commitment to advancing the climate finance agenda in Africa and addressing the pressing challenges of climate change.

“This partnership with FSD Africa is a critical step in our efforts to promote climate resilience and sustainability as one of our central pillars of our operations.

“Together, we will pioneer innovative solutions that address the challenges of climate financing while unlocking opportunities for businesses and communities across Nigeria.

“With the support of strategic partners like FSD Africa, we are confident that BOI will continue to play a leading role in fostering sustainable development and driving positive change across Nigeria’s economic landscape,” the chief executive of BoI, Mr Olasupo Olusi, said.

On his part, the Chief Financial Markets Officer for FSD Africa, Mr Evans Osano, said, “Our partnership with the BoI in advancing sustainable finance is pivotal at this critical time.

“Nigeria’s annual climate finance gap is estimated at $27.2 billion. Bridging this gap requires concerted effort including catalysing domestic capital in addition to international investments to drive sustainable investments.

“We are excited about the bank’s commitment to promoting climate transition and driving Nigeria’s climate commitments towards net zero, and we are happy to be part of this journey.”

By Adedapo Adesanya

The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso has announced that forensic verification to clear all pending foreign exchange backlogs is now completed and payments will commence soon.

Speaking during the launch of the foreign exchange code, Mr Cardoso lamented how it took the bank over 12 months to clear the $7 billion foreign exchange backlog in 2024.

In March last year, the CBN announced clearance of the backlog, effectively eliminating a legacy burden.

The apex bank boss said the era of multiple exchange rates which accorded privileges to a select few was gone, adding that all deposit money banks that flout the ethics of the FX code will face sanctions.

Mr Cardoso also criticised what he described as the era of unprecedented ways and means of financing which impacted negatively on the economy, leading to a high inflation rate and currency depreciation.

The FX Code is a guideline for the banking industry to promote ethical conduct among dealers in the Nigerian foreign exchange market.

On the Electronic foreign exchange matching system launched in December 2024, the central bank governor assured that the intervention has led to improved market transparency and efficiency.

He reiterated the bank’s commitment to exchange rate stability, saying the nation’s external reserve grew to $40.7 billion as of December 2024.

The CBN noted that the new FX Code was in response to developments in the financial landscape in recent years, adding that it will set out standards to holistically strengthen and promote the integrity and effective functioning of the wholesale foreign exchange (FX) market in Nigeria.

“It will facilitate better functioning of the market, further reinforcing Nigeria’s flexible exchange rate regime.

“The FX Code is expected to promote a robust, fair, liquid, open, and appropriately transparent market in which a diverse set of market participants, supported by resilient infrastructure, can confidently and effectively transact at competitive prices that reflect available market information in a manner that conforms to acceptable global behavioural standards and best practices.

“The FX Code applies to Market Participants. “These are Authorised Dealers licensed by the CBN under the CBN Act 2007, and the Bank and Other Financial Institutions Act (BOFIA) 2020 and other participants that engage in the wholesale foreign exchange business in Nigeria as part of their licensed business.”

According to the apex bank, the FX Code is structured around six leading principles, namely ethics, governance, execution, information sharing, risk management and compliance, and confirmation and settlement processes.

By Dipo Olowookere

The N350.4 billion sourced from the capital market through rights issue and public offer by Zenith Bank Plc have been approved by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

The hybrid offer comprised a rights issue of 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share and public offer of 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share.

The public offer was 160.47 per cent subscribed, with a total of 4,440,587,250 ordinary shares allotted based on the terms of the offer and the CBN’s Capital Verification Exercise. The rights issue was also 100.18 per cent subscribed with a total 5,232,748,964 ordinary shares allotted.

The exercise, which opened on August 1, 2024, and closed on September 23, 2024, was to raise N290 billion. It was successfully executed largely as a digital offer, embracing the power of technology to improve access to the equity capital market as it seamlessly leveraged the NGX’s e-offer platform, NGX Invest.

The results of the hybrid offer, which garnered substantial interest from domestic and international investors, have positioned the bank as one of the few banks in Nigeria to meet and even surpass the CBN’s N500 billion minimum capital requirements for banks with International Authorization well ahead of the March 2026 regulatory deadline.

The bank’s share capital will now rise to N614.65 billion, which is N114.65 billion above the regulatory minimum requirement.

Proceeds from the hybrid offer will be strategically deployed to solidify the financial institution’s position as the leading financial institution in Nigeria.

Additionally, the funds will support the lender’s expansion into other markets in Africa and Europe, investment in technology and other Group-wide growth initiatives.

In a statement released to the Nigerian Exchange (NGX) Limited on Sunday, January 26, 2025, the chief executive of Zenith Bank, Ms Adaora Umeoji, said, “The success of our combined rights issue and public offering is a testament to the strong confidence and trust that our shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand.”

“This landmark transaction underscores our commitment to strengthening our capital base, enhancing our competitive edge, and positioning ourselves for sustainable growth and profitability.

“We deeply acknowledge the invaluable and strong support of our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, and are grateful for their guidance in ensuring the integrity and efficacy of the exercise.

“This successful transaction will enable us to continue delivering value to our stakeholders, while also contributing to the growth and development of the economy,” she stated.