Economy
New Export Fund: Investors in 10 banks to Lose N29b
There are indications that about N30 billion would be pulled out from distributable profits of 10 banks to honour Nigerian Bankers Committees’ (NBC) decision to fund the Central Bank of Nigeria’s, (CBN) export fund in 2017.
The figure would be far above the N25 billion CBN had projected for the first year (2017) as last week’s Zenith Bank Plc’s results, the first to be announced so far, already show a significant overshoot of that estimate.
The leading 10 out of 26 banks in the country are set to announce figures that would cumulatively overshoot the CBN’s estimate.
NBC had last month directed that deposit money banks in Nigeria, from the 2016 audited accounts, will set aside 5 percent of their profit after tax (PAT) and pay same into a pool fund to finance Nigerian export businesses or businesses with import substitution capabilities.
This effectively takes away a significant portion of money from equity investors’ benefits in the quoted banks.
Impact on the Banks Based on the Full Year 2016 PAT estimates put together by Cardinal Stone Partners, a Lagos based investment house, on their coverage banks, total exposure will amount to N29.3 billion.
The Cardinal Stone Reports also indicated the relative exposure of each of the banks.
According to the report, in absolute terms, Guaranty Trust Bank Plc (GTB) has the largest exposure with an expected contribution of N7.1 billion (24% of total sector contribution) whilst Diamond Bank Plc will be the least exposed with an expected contribution of N0.4 billion (1% of total sector contribution).
Nigerian banks have consistently paid dividends, with top tier banks such as GTB and Zenith Bank Plc paying as much as 45% of PAT.
At the backdrop of this the analysts at Cardinal Stone stated: “After incorporating the impact of this development on FY’16 expected dividends, we estimate an average 5% drop in dividend per share, translating to an average expected dividend yield of 12% for FY’16.
“Finally, the policy’s impact on our valuation is immaterial as our recommendations remain largely unchanged.
“However, Access Bank Plc and Ecobank Transnational which previously had “BUY” recommendations have been downgraded to a HOLD.
Briefing journalists at the end of the January 2017 NBC meeting, Mr Ahmed Abdullahi, Director, Banking Supervision Department, CBN, said the initiative was to support the federal government’s drive to create and deepen a non-oil economy.
The Bankers Committee considered it necessary “to support the effort of the government in diversifying the economy by coming up with an initiative that will help with export drive and import substitution,” he said.
“Therefore, the committee has decided that we will be contributing 5 percent of each bank’s profit after tax in a pool of funds that will be kept at the Central Bank of Nigeria (CBN) and it will be used to finance eligible bankable projects that are meant for export or import substitution.
“The scheme will be controlled by the members of the Bankers Committee. There will be a project review committee that will review submissions from entrepreneurs that require funding. The committee will make a recommendation to the Board of Trustees of the Bankers Committee,” he explained.
He said each bank has an equity holding in the scheme based on its annual contribution from its annual profits. Mr Abdullahi said the scheme will start from the 2016 financials.
“Banks have submitted their 2016 statement of accounts and they are to be published not later than April, 2017.
“So we are starting the programme this year using 2016 financials of banks. Any industry that is going to be export driven will benefit.
“Similarly, any industry that will provide import substitution will also benefit,” he said.
“Based on the banks’ last three years profit and loss accounts, we estimate about N25 billion will be contributed annually by the banks,” he said.
By Adedapo Adesanya
A joint National Assembly probe into President Bola Tinubu’s new oil revenue executive order was stalled on Thursday following a request for more time by the Minister of Petroleum Resources, Mr Heineken Lokpobiri.
The hearing was convened to scrutinise the executive order directing that royalty oil, tax oil, profit oil, profit gas and other revenues due to the Federation under various petroleum contracts be paid directly into the Federation Account.
Mr Lokpobiri told lawmakers that although he attended out of respect for parliament, he had been notified of the hearing only a day earlier and had not obtained all the relevant documents needed to defend the policy adequately.
He appealed for the session to be rescheduled.
Co-chairman of the joint committee and Chairman of the Senate Committee on Gas, Mr Agom Jarigbe, put the request to a voice vote, and lawmakers approved the adjournment.
A new date is expected to be communicated to the minister.
The executive order signed last week also scrapped the 30 per cent Frontier Exploration Fund created under the Petroleum Industry Act (PIA) and discontinued the 30 per cent management fee on profit oil and profit gas previously retained by the Nigerian National Petroleum Company (NNPC) Limited.
Anchored on Sections 5 and 44(3) of the Constitution, the presidency said the directive was aimed at safeguarding oil and gas revenues, curbing excessive deductions and restoring the constitutional entitlements of federal, state and local governments to the
However, the order has sparked criticism within the industry, one of which was from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), whose president, Mr Festus Osifo, called for an immediate withdrawal of the order, warning that it could undermine the PIA and erode investor confidence.
Meanwhile, at another session, the Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, disclosed that President Tinubu would soon transmit proposals to amend certain provisions of the PIA to align with current economic realities.
He noted that while many expect the executive order to boost revenue automatically, Nigeria has yet to achieve its desired income levels.
He did not specify which sections of the law would be targeted, but suggested that the drive to enhance revenue generation would necessitate legislative adjustments.
The PIA, signed into law in 2021 by the late ex-President Muhammadu Buhari, overhauled the governance, regulatory and fiscal framework of Nigeria’s oil and gas sector, commercialised the NNPC and restructured revenue-sharing arrangements.
By Aduragbemi Omiyale
Shareholders of Nigerian Exchange (NGX) Group Plc will receive one new share for every three held as of April 10, 2026, as a bonus, according to a proposal from the board.
This is in addition to a final dividend of N2.00 proposed by the board to shareholders for the 2025 fiscal year, which raised the total dividend for the year to N3.00, according to the financial statements of the company filed with NGX Limited.
Last year, NGX Group recorded a sterling performance, with its earnings growing by 36.0 per cent to N22.9 billion from N16.9 billion due to sustained growth across core business segments, improved customer penetration on the back of increased investor activity and rising investor confidence.
The operating profit in the year increased by 44.4 per cent to N11.8 billion, while pre-tax profit jumped to N15.6 billion from N13.6 billion in 2024, with the earnings per share (EPS) at N4.75.
As for its balance sheet, total assets increased to N71.0 billion from N68.0 billion, while shareholders’ equity strengthened to N55.2 billion
The improved debt-to-equity position reflects a conservative capital structure, enhanced solvency profile, and strong retained earnings growth.
“Our 2025 performance demonstrates the resilience of our business model and the effectiveness of disciplined strategic execution. Strong revenue growth, improved operating margins and a strengthened balance sheet reinforce our commitment to delivering sustainable long-term shareholder value.
“The increased dividend and bonus issue reflect the Board’s confidence in the sustainability of our earnings and the robustness of our capital position as we continue to deepen Nigeria’s capital markets.
“We are confident that the momentum that we have built in 2025 will be sustained, given investor confidence in the Nigerian capital market and a pipeline of exciting new listings that will broaden and deepen the market,” the chairman of NGX Group, Mr Umaru Kwairanga, said.
On his part, the chief executive of the organisation, Mr Temi Popoola, said, “We delivered strong top-line growth and enhanced profitability in 2025 despite macroeconomic headwinds.
“Our 36 per cent core revenue growth, improved operating efficiency and successful deleveraging have strengthened our capital base and financial flexibility, supporting the increased dividend and bonus issuance.
“As regulatory standards evolve, including the recent upward review of minimum capital requirements by the Securities and Exchange Commission (SEC), our robust balance sheet positions us to meet new thresholds seamlessly while continuing to invest in liquidity expansion, product innovation and market infrastructure to build a resilient, globally competitive exchange group.”
By Adedapo Adesanya
The Vice President, Mr Kashim Shettima, inaugurated the Board of the Nigerian Consumer Credit Corporation (CREDICORP) and gave a 50 per cent access target for workers, saying consumer credit was critical to Nigeria’s ambition of becoming a one-trillion-dollar economy by 2030.
According to him, President Bola Tinubu established the CREDICORP to build a trusted credit infrastructure, provide catalytic capital to lower borrowing costs, and help Nigerians overcome long-standing cultural resistance to credit.
Speaking on Thursday in Abuja when he inaugurated the board on behalf of the President, the Vice President, in a statement by his spokesman, Mr Stanley Nkwocha, said that the quality of life of Nigerians cannot improve without closing the gap between access to capital and human dignity.
“A civil servant who earns honestly does not have to chase sudden wealth just to buy a vehicle, or save for ten years to buy one. A young professional should not remain in darkness simply because solar power must be paid for all at once,” the Vice President said.
VP Shettima disclosed that in just one year of operations, CREDICORP has disbursed over ₦37 billion in consumer credit to more than 200,000 Nigerians, with over half of them accessing formal credit for the first time.
The Vice President said the organisation was specifically tasked with building credit infrastructure to bridge the trust gap between lenders and borrowers, providing wholesale capital and credit guarantees through its portfolio company.
“Ultimately, these critical jobs of CREDICORP will enable access to consumer credit to at least 50 per cent of working Nigerians by 2030,” he said.
The Vice President explained that the new board’s role was not ceremonial as they are custodians of the organisation’s mission, adding that the long-term strength of the institution would depend on their “vigilance, integrity, sacrifice, and commitment.”
He directed Board members to uphold Public Service Rules, the Board Charter, and all applicable governance frameworks, warning that accountability and stewardship of public resources were non-negotiable.
The Chairman of CREDICORP, Mr Aderemi Abdul, expressed appreciation to President Tinubu for his vision behind the formation of CREDICORP and for the confidence reposed in them, noting that the establishment of the corporation marked an important step towards strengthening the nation’s financial architecture.
He assured President Tinubu that the board understands its responsibility and will guide the institution to deliver meaningful benefits to Nigerians.
For his part, Mr Uzoma Nwagba, Managing Director/CEO of CREDICORP, recalled watching President Tinubu say 20 years ago that consumer credit is one of the major tools that will improve the lives of Nigerians.
He noted that over the past 18 months, the institution has benefited more than 200,000 Nigerians, including students.
He assured that the presidential vision behind CREDICORP would not be taken lightly, as the team considers their appointments a unique, once-in-a-lifetime opportunity.
Other members of the board inaugurated include Mrs Olanike Kolawole, Executive Director, Operations; Mrs Aisha Abdullahi, Executive Director, Credit and Portfolio Management; Mr Armstrong Ume-Takang (MD, MoFI), Representative of MoFI; Mrs Bisoye Coke-Odusote (DG, NIMC), Representative of NIMC; and Mr Mohammed Naziru Abbas, Representative of FMITI.
Others are Mr Marvin Nadah, Representative of FCCPC; Mrs Chinonyelum Ndidi, Representative of the Federal Ministry of Finance; Mr Mohammed Abbas Jega, Independent Director; and Mrs Toyin Adeniji, Independent Director.
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