Economy

Ecobank Loses N52.6b in 2016 as Customer Deposits Drop 18%

Published

9 years ago

18/04/2017

By Modupe Gbadeyanka

The year 2016 was really a challenging one for Ecobank Transnational Incorporate (ETI) going by its audited financial results released to the Nigerian Stock Exchange (NSE) today.

In the financial statements analysed by Business Post, it was observed that the N221.7 billion impairment charges dragged Ecobank to a loss after tax of N52 billion, as against a profit after tax of N21.25 billion in 2015.

Also, the firm’s loss before tax stood at N33.7 billion in 2016 compared with a profit before tax of N40.5 billion it achieved 12 months earlier.

However, Ecobank took a decision to completely clean its books of non-performing risk assets in its legacy loan portfolio, making a provision of N221.7 billion in its 2016 audited accounts.

The impairment charges, showed a jump of 110.7 percent compared with N105.2 billion recorded in 2015.

Ecobank said in the results that it recorded a growth of 22.3 percent in gross earnings to N665 billion in 2016, from N542.7 billion in 2015.

Net interest income similarly rose by 25.3 percent to N284 billion, from N226.6 billion in 2015. Profit before impairment charges stood at N188 billion, up from N146 billion.

The company said deposits from customers dragged down by 18 percent to $13.5 billion in the year under review, while its total assets depreciated by 13 percent to $20.5 billion.

Commenting on the results, the Group Chief Executive Officer of ETI, Mr Ade Ayeyemi said the firm’s revenues remained resilient despite a tough year of macro- economic headwinds including a weaker economic environment, particularly in Nigeria, and the “strengthening of our reporting currency, the US Dollar, against all African currencies particularly the Nigerian Naira where 40 percent of the Group’s revenues have historically been generated.”

He said further that, “Separately, our end of year bottom line performance has been impacted by our voluntary adoption of a full impairment charge regarding our legacy loan portfolio, for which a resolution vehicle was set up, the first private sector funded resolution vehicle of its kind in Nigeria, with the sole objective of ring-fencing the legacy loans from Nigeria’s core bank.

“This, among others, would allow management to focus on delivering results. Our business philosophy was founded on international best practice in terms of accounting and asset quality, so whilst the impairment charge has impacted our earnings, our accounting treatment has been for the right reasons and we are in better shape for the future as a result.”

While assuring that stakeholders that the group has strengthened its entire risk management architecture, he said the bank would also focus on bringing down impairment cost, improve the collection so that the bottom line would be robust going forward.

Mr Ayeyemi disclosed that the funds proposed $400 million convertible bond issue will be used sensibly and profitably, of which $200 million would be used to repay the short-term financing used in setting up the resolution vehicle.

“The remaining $200 million is for a conscious debt restructure of the maturity profile of the ETI Holdco balance sheet.

“We are delighted to have very high subscription levels to the issue from existing shareholders, in the region of $300 million. The conversion price of the offer is 6 USD cents compared to a current price of 3 USD cents with an interest rate of 6.46 per cent above LIBOR.

“Good businesses should always match operational expansion with cost control, and this is a fundamental belief of ours which we practise.

“We maintain our cautious stance on lending in this challenging period, but will continue to implement a number of exciting new customer initiatives such as our pan-African banking app and leveraging our blue-chip partnerships to benefit our customers across 40 countries.

“As the gateway to global trade finance in Africa, the role we are playing at the centre of the intra-Africa trade and cash management for governments, corporate clients, suppliers and distributors will benefit the economies in which we operate and consequently the income of Ecobank,” he said.

Economy

APM Terminals to Invest $600m in Nigeria’s Maritime Sector

Published

10 hours ago

15/05/2026

Modupe Gbadeyanka

By Modupe Gbadeyanka

The Nigerian maritime sector may soon witness the inflow of $600 million in investment from APM Terminals.

On the sidelines of the ongoing Africa CEO Forum in Kigali, Rwanda, the Regional President of APM Terminals for Africa-Europe, Mr Igor van den Essen, informed President Bola Tinubu that his company was interested in deepening its investment in Nigeria.

According to a statement issued by the Special Adviser to the President of Information and Strategy, Mr Bayo Onanuga, the investment would be deployed in Apapa port modernisation, logistics infrastructure, and long-term private-sector investment in Nigeria’s maritime sector.

President Tinubu welcomed the investments, emphasising that Nigeria is repositioning itself for greater competitiveness through ongoing economic reforms and infrastructure modernisation.

He said the country is determined to move beyond structural bottlenecks and outdated systems, stressing the need for advanced technology, faster cargo processing, and improved operational efficiency across the nation’s ports.

He emphasised that Nigeria possesses the market scale, talent base, and economic potential to support globally competitive maritime and logistics infrastructure investments and called on other investors to take advantage of Nigeria’s reform outcomes.

Earlier, Mr Igor van den Essen lauded President Tinubu’s reform agenda and policy direction, which had strengthened investor confidence and created renewed momentum for long-term infrastructure investments.

He described Nigeria as a strategic stronghold within its African operations, referencing over 20 years of collaboration and substantial existing investments in the country’s port ecosystem.

He reaffirmed his company’s commitment to expanding investments in Nigeria and disclosed plans to support the development of world-class terminal infrastructure and technology-driven port operations.

He also commended Mr Tinubu for establishing the National Single Window (NSW), which has streamlined trade procedures, improved Customs coordination, and reduced delays in cargo clearance.

Economy

Dangote Sues FG Over Fuel Import Licences

Published

10 hours ago

15/05/2026

Adedapo Adesanya

By Adedapo Adesanya

Dangote Petroleum Refinery has filed a new lawsuit against the federal government over the fuel import licences issued to ‌marketers and the Nigerian National Petroleum Company (NNPC) Limited.

Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued licences to six marketers for the importation of 720,000 metric tonnes of Premium Motor Spirit, known as petrol.

The marketers are NIPCO, AA Rano, Matrix, Shafa, Pinnacle, and Bono. The development comes amid claims by the NMDPRA that the Dangote Petroleum Refinery now supplies over 90 per cent of Nigeria’s daily petrol consumption.

Dangote said in the filing that the licences issued undermine its operations and contravene the law, which it argues allows imports only when domestic supply falls short.

Named in the suit against the country is the Attorney General and Minister of Justice, Mr Lateef Fagbemi. The federal government can only be sued via his office.

The case signals renewed tensions almost a year after Dangote withdrew an earlier lawsuit challenging similar licences. That case sought to nullify import permits issued to the NNPC and several traders.

The new filing asks the Federal High Court in Lagos to set aside import permits issued or renewed by the NMDPRA, arguing they breach an earlier order to maintain the status quo.

Dangote ⁠ended the earlier lawsuit in July 2025 without explanation, leaving unresolved questions over competition and supply in one of Africa’s largest fuel markets.

Nigeria ⁠has long relied on petrol imports due to underperforming state refineries. However, Dangote’s 650,000 barrels ⁠per day capacity refinery was touted to end that dependence.

Despite the presence of the facility, imports have continued to cover supply gaps as the refinery ramps up output.

The NMDPRA did not issue a single import licence in the first quarter of 2026 because the Dangote refinery had the capacity to meet Nigeria’s petrol demand.

Business Post gathered that only upon intervention by President Bola Tinubu were the licenses granted for the second quarter by the NMDPRA.

Economy

Nigeria’s Inflation Rises to 15.69% in April as Middle East Crisis Persists

Published

10 hours ago

15/05/2026

Adedapo Adesanya

By Adedapo Adesanya

The Nigeria Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate in April 2026 rose to 15.69 per cent, beating analysts’ expectations of 15.95 per cent, as the fallout from the Iran war continued to affect the global economy.

The statistical office on Friday showed the headline inflation rate for April on a month-on-month basis was 2.13 per cent, while the food inflation rate in the review month was 16.06 per cent on a year-on-year basis.

The rise in prices comes as an energy price shock stemming from the continued conflict in the Middle East, which stoked food prices and affected relative exchange rate stability.

According to the NBS, “this can be attributed to the rate of change in the average prices of the following products: Millet whole grain, yam flour, ginger (Fresh), beef, garri, tam tuber, pepper (Fresh), cray fish, cassava tuber, Beans, Irish Potatoes, tomatoes (fresh), wheat grain (Sold loose), soya beans, guinea corn, plantain, carrots (Fresh) etc.”

“The average annual rate of food inflation for the twelve months ending April 2026, relative to the previous twelve-month average, was 17.55%, which was 17.05% points lower than the average annual rate of change recorded in April 2025 (34.60%),” the NBS said.

Analysts at Coronation Research had earlier projected that the inflation rate in Nigeria would be at 15.95 per cent on a year-on-year basis in April 2026. It added that the expected inflation rate signals a return toward the underlying disinflation trajectory and could be a pivotal data point in shaping Monetary Policy Committee (MPC) deliberations at the next policy meeting.

It also expects food inflation to further ease, as food and non-alcoholic beverages remain the dominant contributor to headline CPI, accounting for about 40 per cent of the Consumer Price Index (CPI) basket.

The MPC of the Central Bank of Nigeria (CBN) will meet this month, the first since the Iran War started in late February, to review core monetary policies and possibly make adjustments.

The committee reduced the Monetary Policy Rate (MPR) by 50 basis points from 27.0 per cent to 26.5 per cent at its 304th Monetary Policy Committee (MPC) meeting in February.