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Union Bank, Sterling Bank Give NIRSAL N232m for Poultry, Cocoa

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NIRSAL

By Sodeinde Temidayo David

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has secured about N232 million loans from Union Bank of Nigeria Plc and Sterling Bank Plc to finance poultry production and cocoa export in Nigeria.

Part of the credit facility has been disbursed by NIRSAL to Gbagolo Integrated Farms Limited, a livestock producing firm and TOAJ Nigeria Limited, a cocoa dealing firm located in Cross River State.

This was initiated in a bid to promote the vision of transforming the economy, delivering inclusive growth and positively impacting the lives of Nigerians.

According to the Managing Director of NIRSAL Plc, Mr Aliyu Abdulhameed, this leverage on the Credit Risk Guarantee (CRG), an instrument the organization utilises to share agribusiness risks with financiers.

Mr Abdulhamed disclosed that the body facilitated the approval and disbursement of N81.8 million sourced from Union Bank and N150 million from Sterling Bank, respectively to the poultry production and cocoa export firms.

According to the NIRSAL boss, Gbagolo Integrated Farms Limited will use its N81.8 million term loan to finance the purchase of 25,000 Point of Lay, 25,000 capacity battery cages and feeding compliments.

TOAJ Nigeria Limited, on its part, will channel its N150 million export or trade finance facility towards the sourcing and purchase of cocoa for export.

The financing (N231.8 million) is set to boost the poultry and cocoa value chains in the state and is expected to generate significant gains for the local and national economies.

The injection of these funds into the poultry and cocoa value chains in Cross River State will create a positive knock-on effect for players along each segment of both value chains and the agribusinesses’ host communities at large.

Specifically, the purchase of 25,000 Point of Lay birds by Gbagolo Integrated Farms will impact poultry feeds sellers and other input suppliers in the pre upstream value chain segment, producers, sellers of point of lay birds in the upstream segment, and consumers of eggs and spent layers in the downstream segment.

Also, the TOAJ facility will support the thousands of farmers who supply its inventory by providing them with a secure, sustainable, and guaranteed off-take market.

Furthermore, the export of cocoa will increase Nigeria’s post in the global cocoa market and boost the country’s foreign exchange earnings.

NIRSAL reiterated that it was set to positively impact both the lender and the borrower, as well as the overall economy, indicating that the lender invests safely and earns competitive returns, the borrower’s capacity utilization and productivity is increased, and the economy reaps the benefits of the diffident addition caused by increased local production at the expense of importation of essential goods.

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Banking

Heritage Bank in Debt Crisis, Reps May Order CBN Takeover

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Heritage Bank CEO Ifie Sekibo

By Aduragbemi Omiyale

The banking industry in Nigeria may be plunged into another crisis if urgent steps are not quickly taken to address the issue so as to douse the looming tension.

Business Post reports that a few years ago, precisely in 2018, depositors and shareholders of Skye Bank were in a panic mood after the Central Bank of Nigeria (CBN) nationalised the lender to Polaris Bank Limited because of debts and the House of Representatives on Thursday raised an alarm that another financial institution, Heritage Bank, is allegedly swimming in huge debts.

The lower chamber of the National Assembly had invited the bank and its Managing Director, Mr Ifie Sekibo, to explain why the amount the company owes the federal government is more than its share capital, but he has failed to honour the request.

This action has infuriated the parliament, which has threatened to direct the CBN to take over the ownership of Heritage Bank if Mr Sekibo and the bank ignore their latest invite next Wednesday.

Mr Adejoro Adeogun, Chairman of the Adhoc Committee on Assessment and Status of All Recovered Loots, Moveable and immovable Assets from 2002 to 2020 by agencies of the federal government for Effective and Efficient Management and Utilisation, issued this threat at the resumed hearing of the committee yesterday.

“I need to send this message to Heritage Bank that we are not comedians here and we are not joking here. If Heritage Bank owes Nigeria more than its share capital, we will not hesitate to ask the National Assembly to write to CBN to take over Heritage Bank.

“They cannot be owing more than their share capital and feel too big to respond to invitations from the National Assembly. Clerk, you have to write them, give them till Wednesday next week. That is the last time we are going to give them,” an angry Mr Adeogun barked.

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Banking

MFS Africa Expands into Nigeria With Baxi Acquisition

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Baxi

By Sodeinde Temidayo David

Nigerian fintech startup, Baxi, has been acquired by the Pan-African payments company, MFS Africa, giving way to its business expansion into Nigeria.

The acquisition of the Nigerian firm was sealed after MFS Africa signed an agreement with Capricorn Digital, Baxi’s parent business, for an undisclosed amount.

Founded in 2014, Baxi provides a cash-in or cash-out offering as well as value-added services like account opening, money transfer, bill payment and more, through its network of more than 90,000 agents.

These services are provided through the company’s retail network of agents and merchants in some of Nigeria’s most remote regions, through its BaxiBox POS, BaxiPay, Baxi MPoS Device, and BaxiRIMS products.

Recall that MFS Africa had earlier acquired East African payments management startup Beyonic, a Ugandan fintech startup and this time also, has plans to build Baxi into a key node on its digital payment network, allowing customers to make regional and global payments to and from Nigeria.

The deal, which is subject to approval from the Central Bank of Nigeria (CBN), sees MFS Africa expand into Nigeria for the first time, having had a limited presence thus far due to the country’s small number of mobile wallets.

MFS Africa will also expand Baxi’s proposition for offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets across more than 35 African countries.

Speaking on the acquisition, the Chief Executive Officer (CEO) of  Capricorn, Mr Degbola Abudu, expressed that the future of the mobile payments landscape in Africa is a game of few, where consolidation is the way forward, and attempting to scale alone would require more capital expenditure and a longer time to execute.

“By teaming up with MFS Africa, and with the strong support of our local commercial banking partners, we can offer more value-added products and services, such as cross-border payments, to support Nigerian SMEs in their growth.”

“We believe that we’ve barely scratched the market’s potential. The deal brings many things that allow us to grow very quickly,” Mr Abudu noted.

MFS Africa intends to build Baxi into a key node on its digital payment network, allowing customers to make cross-border payments to and from Nigeria, similar to what it’s done with mobile money operators across Africa.

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Banking

Nigerian Digital Lender Brass Gets $1.7m to Support SMEs

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Brass

By Ashemiriogwa Emmanuel

Provider of premium banking services for African Small/Medium Enterprises (SMEs), Brass, has raised the sum of $1.7 million in a funding round to strengthen its financial services rendered to local entrepreneurs, traders, and fast-growing businesses across the continent.

Investors who participated in the round included the co-founder of Flutterwave, Mr Olugbenga Agboola, co-founder of Paystack, acquired by Stripe, Mr Ezra Olubi, Hustle Fund, Acuity Ventures, Uncovered Fund, and Ventures Platform.

Brass’ past investors have included Olumide Soyombo of Voltron Capital, Leonard Stiegler, Fola Olatunji-David, Yemi Lawani, and two senior executives from major Nigerian banks.

With the fresh funding, the Nigerian digital bank is set to launch a number of new product categories, which will lead to expanding its credit market presence.

Even as the startup is looking at broadening its customer base, the new financial capacity will facilitate its plans to accelerate its expansion into other African countries such as South Africa and Kenya.

Explaining further on the significance of the fundraising, the Co-Founder and CEO of Brass, Mr Sola Akindolu, who is a former Head of Product at Kudi Bank, noted that the contributions made by these investors, together with their expertise, will not only play a vital role ahead of Brass’s expansion into South Africa and Kenya, but also in the future ambitions outside of the continent.

“The basic needs of Africa’s SMEs are just as significant and unique as those of the customers they serve each day and now more than ever, we need innovative and world-class financial services solutions that meet their expectations.

“These local businesses have supported our economies for decades, forming the backbone of Africa’s success to date, and now is the time to bet on them.”

“At Brass, we’ve made some great strides over the last year in tackling one of Africa’s most critically underserved customer bases but with an estimated $5.1tn credit gap globally, our work is far from over,” he added.

Expressing excitement over the investment, Mrs Elizabeth Yin, General Partner at Hustle Fund, one of the investors, said “We believe Africa’s entrepreneurial ecosystem, and fintech sector is witnessing an unprecedented shift, and Brass is at the forefront of that, supporting local businesses and professionals with banking technology to supercharge their growth. We are excited by their vision, and honoured to be joining them on their journey.”

Founded in July 2020, Brass offers full-stack, commercial-grade banking solutions to SMEs cutting across different business classes, allowing them to gain greater clarity and control over their money operations.

Brass online platform provides a wide range of business banking needs, including credit and payment services, payroll and expense management, Application Programming Interface (API) support, and other essential business services.

Having disbursed over $2 million in credit to business since inception, Brass’s recent solution which is ‘Brass Capital’ helps thousands of businesses scale up with its cash-flow financing design.

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