Economy
FCMB Sustains New Strengths in Q2
First City Monument Bank (FCMB) sustained new strengths in operations in the second quarter despite the challenges of the COVID-19 economic lockdown. The bank kept all the growth levers up from the closing levels in 2019.
The addition of new strengths and retention of some key capabilities of the preceding year constitutes the operating advantage for the bank this year. It is maintaining the elevated revenue outlook seen in the first quarter, which is happening for the first time since 2017.
Both interest and non-interest incomes are contributing to revenue improvement but non-interest earnings keep leading the way. Against a drop of 11 per cent in 2019, non-interest income grew by 13 per cent year-on-year at half-year ended June 2020.
Interest income is still accelerating from 4 per cent at the end of last year to 8 per cent at half-year though slowing down from 15 per cent growth in the first quarter. This remains the highest growth rate in interest income for the bank at any time since 2014.
The good behaviour of interest expenses seen in the first quarter improved to better in the second quarter. From a moderated growth of 4 per cent in the first quarter, interest expenses proceeded to a 3 per cent decline year-on-year at half-year.
Accelerating interest income and a decline in interest expenses enabled an increase of 17 per cent in net interest income from less than 5 per cent improvement at the end of 2019.
This marks the first reasonable improvement in revenue the bank is seeing since 2017. Last year ended with only a 2 per cent increase in gross income to a little over N181 billion. Revenue growth at half-year represents the highest in four years.
The retained strength in revenue is keeping the bottom line on the upbeat at which the bank began the year in the first quarter.
Profit improvement remains quite good at 29 per cent year-on-year for FCMB at half-year – still one of the best growth records in the banking sector. This is an accelerating growth from the 16 per cent profit improvement at the end of 2019.
The ability to convert revenue into profit improved both on a year-on-year basis and from the 2019 closing mark.
At the end of half-year, the net profit margin stretched out from 8.4 per cent in the same period last year and from 9.5 per cent at the end of 2019 to 10 per cent.
This is a step back, however, from 11 per cent in the first quarter but yet remains the highest net profit margin for the bank since 2015.
The bank’s operating strength for the 2020 financial year is anchored on growing revenue and improving profit margin. The strength to grow profit more than two and a half times as fast as revenue at half-year points to a reasonable cost saving achieved by management. This came from a decline in interest expenses and a moderated operating cost during the period.
The loss in the first quarter of a key strength of last year – which is a drop in net loan impairment expenses for the third straight year, remained in place at half-year.
Loan loss expenses rose by close to 41 per cent to N7.8 billion at the end of June 2020. The increase follows an increase of 13 per cent in the loan portfolio last year and by another 10 per cent over the first half of the current financial year to N795 billion.
Half-year operations ended with gross earnings of slightly over N98 billion for FCMB, an accelerated growth from 2.3 per cent at the end of 2019 to 9 per cent year-on-year. This marks the first reasonable improvement in revenue since 2017.
An improvement of 8 per cent in interest income to over N76 billion is one of the new strengths for FCMB in 2020.
This reflects the expansion of earning assets with loans and advances growing by N80 billion over the 2019 closing figure of N715 billion and investments rising by N60 billion to N300 billion over the same period. The second is a rebound in non-interest earnings that were a drag for the bank last year to N22 billion at the end of half-year.
At slightly N30.8 billion, interest expenses improved further its disciplined behaviour – declining by 3 per cent against an increase of 4 per cent in the first quarter. The share of interest income devoted to interest expenses went down from 45 per cent to 40 per cent over the review period. The result is an increase of 17 per cent in net interest income to over N45 billion at half-year.
FCMB closed the half-year operations in June 2020 with an after-tax profit of N9.7 billion, an increase of 29 per cent year-on-year. The bank is maintaining the path of growing profit for the third consecutive year since it lost 40 per cent of profit in 2017.
Earnings per share amounted to 49 kobo at the end of half-year operations, improving from 38 kobo per share in the same period last year.
The ability to maintain an elevated performance in earnings through the economic lockdown in the second quarter is a bullish point for FCMB going forward to the second half.
The bank is expected to retain the key strengths of growing revenue, moderating interest expenses, and improving profit margin to stay the course of rebuilding profit for the third straight year in 2020.
By Adedapo Adesanya
• Strengthens case for MPC to cut or pause interest rates next week
Nigeria’s headline inflation rate eased to 23.71 per cent in April 2025, reflecting a 0.52 percentage point decline from the 24.23 per cent recorded in March.
This was disclosed in the latest Consumer Price Index (CPI) Report released by the National Bureau of Statistics (NBS) on Thursday.
The report also showed a decline in the food inflation index by 0.53 per cent to 21.26 percent in April from 21.79 per cent in March.
The decrease was attributed to the reduction in the prices of staple food items, including maize (corn) flour, wheat grain, dried okro, yam flour, soya beans, rice, bambara beans, and brown beans.
According to the NBS: “The Consumer Price Index (CPI) rose to 119.52 in April 2025, reflecting a 2.18-point increase from the preceding month.”
“On a year-on-year basis, the headline inflation rate was 9.99% lower than the rate recorded in April 2024 (33.69 per cent). This indicates a significant decrease compared to the same month in the preceding year, though with a different base year of November 2009 = 100,” it added.
The report further noted that the food inflation rate on a year-on-year basis stood at 21.26 per cent in April 2025, marking a 19.27 per cent reduction from the 40.53 per cent achieved in April 2024. The NBS attributed this sharp decline to a change in the base year used for calculations.
On a month-on-month basis, food inflation was recorded at 2.06 per cent in April 2025, a slight drop of 0.12 per cent from 2.18 per cent in March 2025.
“The decrease can be attributed to the reduction in the average prices of key food items like Maize Flour, Wheat Grain, Okro Dried, Yam Flour, Soya Beans, Rice, Bambara Beans, and Brown Beans,” the report added.
The development increases the chances of the Central Bank of Nigeria (CBN) to cut or pause interest rate at its next Monetary Policy Committee (MPC) meeting on May 20.
The MPC of the apex bank has only four months of data to guide its decision after the NBS overhauled the consumer price index for the first time in 16 years in January and changed the base year to 2024.
Business Post reports that at the last meeting, the CBN paused the key interest rate at 27.50 per cent.
By Modupe Gbadeyanka
A Kano-based company, Mamuda Group Nigeria Limited, is planning to build a factory in Ogun State worth $50 million.
The firm has tentacles in the food, personal care, and agro-processing sectors through its subsidiary, Mamuda Beverages.
Already, the company has acquired an expanse of land for its plant in Ogun State, with the foundation laying scheduled for next month, according to the Governor of Ogun State, Mr Dapo Abiodun, who said this is part of ongoing efforts to make the state a top destination for industrial growth in Nigeria.
“We are pleased that our administration’s commitment to creating a business-friendly environment is attracting major investors,” he stated, noting that, “Our open-door policy and investor support structures continue to set us apart.”
Business Post learned that Mamuda Group chose the South-West state for its new factory because of its strategic location, bordering Lagos and connecting to Ibadan and Benin, making it ideal for regional distribution and production.
The organization currently employs over 13,000 people across sectors such as leather exports, agro-sack production, confectionery, soft drinks, and personal care.
With this new development in Ogun State, the company plans to begin with 1,500 employees, growing to 3,000 as operations expand, aligning with the state government’s goal of creating quality jobs and strengthening the state’s manufacturing base.
Governor Abiodun said to further support growth, his administration has developed key infrastructure like Nigeria’s best-equipped airport and a licensed dry port linked to the rail line.
According to him, these facilities will streamline importation and logistics, cutting delays and costs, noting that with tools like the Business Environment Council, the state government is not only attracting investment, but building lasting confidence in Ogun State’s economic future.
By Adedapo Adesanya
Six Nigerian startups have been recognised on the Financial Times’ 2024 ranking of Africa’s Fastest-Growing Companies, which features 130 high-growth firms across the African continent.
The companies are Moniepoint, OmniRetail, PalmPay, Termii, Remedial Health, and Paga.
The annual ranking published by the newspaper, produced in partnership with research company, Statista, identifies African companies with the most rapid revenue growth between 2020 and 2023.
The list benchmarks companies by compound annual growth rate (CAGR) in revenues, while also considering headcount expansion and operational resilience amid inflation, currency fluctuations, and economic headwinds across the continent.
This is a welcome development compared to 2023 when five startups namely Omniretail, Moniepoint, Thrive Agric Limited, Paga, and Zone were named on the 100-company list.
While Thrive Agric and Zone didn’t make the list; PalmPay, Termii, and Remedial Health have ascended.
This ranking serves as a boost to investors that these companies are on the right part and could help in fundraising and access to new markets.
This also comes at a period where startups on the continent are facing declining funding compounded by global uncertainties including inflation and recession fears.
This silver lining may yet serve as a catalyst to reverse the trend and make Nigeria yet again see boon when it comes to venture funding.
Business Post reports that Nigeria raised $100 million (24 per cent) out of the $460 million through deals of $100K or more (excluding exits) in Africa in the first quarter of 2025, a figure that reflects a 5 per cent dip from Q1 2024’s $486 million.
About the Companies
Moniepoint
The startup formerly known as TeamApt has had a standout year. Moniepoint recently hit unicorn status after raising $110 million from Google, VISA, and other global investors. Now operating as Moniepoint Inc., the company has grown from a B2B payments platform to a full-fledged business bank, with services spanning merchant terminals, working capital, and payroll solutions.
PalmPay
Launched in 2019 with backing from China’s Transsion Holdings, PalmPay has become a household name in Nigeria’s consumer payments space. With over 30 million registered users and aggressive offline and digital campaigns, PalmPay’s mobile wallet and bill payment services have seen exponential growth. Earlier this year, the company expanded into Ghana and introduced new features, including insurance products and virtual cards.
Paga
A pioneer in Nigeria’s fintech scene, Paga was founded in 2009 to digitize cash and simplify payments. The company has since evolved into a group structure with three core businesses: Paga Consumer, Doroki (its SME-focused platform), and PagaTech (infrastructure and APIs). It now boasts over 21 million users, a vast agent network, and integration partnerships with major banks and telcos. Paga has also expanded internationally with licenses in Ethiopia and a growing footprint across the continent.
OmniRetail
OmniRetail is a B2B e-commerce platform that enables retailers to order fast-moving consumer goods (FMCG) from manufacturers and distributors via mobile apps, with optimised logistics and embedded financing. The company, which currently operates across Nigeria, Ghana, and Ivory Coast, closed a $20 million Series A round in April 2025. The startup digitises order management for 145 manufacturers, more than 5,800 distributors, and services over 150,000 informal retailers across its operational markets.
Termii
Launched in 2017 by Emmanuel Gbolade, Ayomide Awe, and Atinuke Idowu, Termii provides communication infrastructure that helps African businesses engage and retain customers via multi-channel messaging, including SMS, voice, and email APIs. The Y Combinator-backed startup has become a critical enabler of real-time notifications and two-factor authentication across fintech, healthtech, and logistics platforms. In late 2023, Termii launched TermiiGo, a programmable voice and call masking solution that expands its suite of developer tools. The company has also seen increasing adoption among financial institutions and large consumer-facing startups across West Africa.
Remedial Health
Founded in 2021 by Samuel Okwuada and Victor Benjamin. Remedial Health is a healthtech and supply chain startup digitising the pharmaceutical distribution system in Nigeria. It provides pharmacies and patent medicine vendors with access to authentic, affordable medicines directly from manufacturers, using a mobile-first inventory and procurement platform.
In March 2024, Remedial Health raised $12 million in Series A funding led by QED Investors and Ventures Platform, marking QED’s first healthtech investment in Africa. The company has scaled rapidly by streamlining operations for over 5,000 pharmacies and hospitals across the country.
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