Banking
First Bank Assures Customers Enhanced Palliative Measures
By Modupe Gbadeyanka
Customers of First Bank of Nigeria Limited have been assured enhanced palliative measures to help them overcome the hardship caused by COVID-19 pandemic.
This assurance was given by the CEO of the bank, Mr Adesola Adeduntan, at the company’s virtual Corporate Customers forum webinar held on Thursday.
The banker said the one of the palliatives was the introduction of moratorium by the financial institution to give customers more time to repay their loans.
Speaking on how the lender plans to survive the tide, he the company will optimally maximise the opportunities from the disruptions occasioned by the Coronavirus on the economy to its advantage by reducing the cost of doing business.
“COVID-19 is giving business leaders an opportunity to rethink on an established wisdom.
“It is a major crisis that we need to deal with and we must change it from a bad to good crisis. It offers an opportunity to reinvent our business. We have to think without the box,” Mr Adeduntan said at the event
themed Navigating the Financial Impact of COVID-19 – Business Leaders’ Role in Finding a ‘New Normal.
According to him, the bank is looking at several opportunities to do things differently to achieve desired result.
Speaking on the topic Impact of the COVID-19 Crisis on the Nigeria Financial Sector, he said the pandemic had put significant pressure on revenue and profits of commercial banks.
He said that the banking industry was witnessing more stringent interest rates, higher foreign exchange funding cost and concerns on level of foreign reserves, among others.
The bank chief said that the pandemic had led to uptick in the level of non-performing assets and increase in the level of cyber attacks due to migration to digital channels.
Mr Adeduntan assured customers that the bank would overcome the pandemic, having been in existence for the past 126 years.
He said that FirstBank was already in existence when the first pandemic of 1918 occurred, saying “it weathered it and would still shake off COVID-19 pandemic. Our customers are right in there at the centre of our business.”
Also speaking, FirstBank Group Executive, Treasury & Financial Institutions, Mr Ini Ebong, said that collapse of oil price, oil price war, COVID-19 pandemic and global lockdown affected the foreign exchange market.
Mr Ebong said the foreign exchange market was under immense pressure due to exit of portfolio investors.
He said that demand for dollars was heightened due to collapse of oil price and Coronavirus pandemic.
Mr Ebong explained that steps taken so far by the federal government and the Central Bank of Nigeria (CBN) to support the economy would bring back liquidity.
“If we create a good conducive environment, portfolio managers will still come back to our market,” he said.
Mr Wole Obayomi, Partner, KPMG, said tax was part of life, while noting that no country had cancelled tax payment because of COVID-19.
Speaking on the topic Tax Advisory: Market Disruptions, Mr Obayomi advised corporates to ensure payment of tax as and when due, to reduce tax bills in form of penalties.
He said that corporates could engage tax authorities for payment extension if they foresee late payment due to the global pandemic.
Mr Obayomi, however, called on the Federal Government to suspend the new Value Added Tax increase to 7.5 per cent till 2021 due to COVID-19 pandemic.
Also speaking, Ms Bunmi Bajomo, First Bank Group Head, Corporate Banking Group (Manufacturing), noted that fundamental change requires fundamental actions by corporates, governments, customers and consumers.
Speaking on the topic Impact of the COVID-19 Crisis on the Manufacturing Sector, Ms Bajomo said “there is always an opportunity in any crisis.”
She said that companies with strong balance sheet would come out stronger and marginal players would struggle.
According to her, corporates should be careful and smarter with operational expenses, adding that actions corporates take would determine where they would be post-COVID-19.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.
There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.
But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.
According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.
The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.
She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.
“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.
“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
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