L-R: Managing Director Sterling Bank, Mr. Abubakar Suleiman; Keynote Speaker and Senior Special Adviser on Industrialisation to the President of the African Development Bank (AfDB), Professor Oyebanji Oyelaran-Oyeyinka, President, Nigerian Women in Agricultural Business Cooperative Society Limited (NIWAB), Lady Gracetiti Fredson; Representative of Governor of Benue State, Deputy Governor of Benue State, Mr. Samuel Ode during the Agricultural Summit Africa in Abuja recently.

With an unprecedented $33 million investment in low-interest financing for women in agriculture, Sterling Bank is not only transforming Nigeria’s agricultural sector but also rewriting the nation’s path to food security and economic prosperity.

This monumental commitment, announced at the Agriculture Summit Africa 2024 in Abuja, is set to revolutionise how women engage in agriculture, positioning Nigeria as a global leader in sustainable agricultural innovation.

Speaking at the summit themed “From Scarcity to Security,” Managing Director and CEO Sterling Bank, Mr. Abubakar Suleiman, revealed that the bank has increased its agricultural loan portfolio to an unprecedented 15 percent, leading financial institutions across Africa in agricultural investment.

In partnership with the Mastercard Foundation, Sterling Bank’s “SWAY AgFin” programme has already benefited over 20,000 women and youth in agriculture through the deployment of these funds at single-digit interest rates.

“Access to finance remains a critical barrier to enhancing food production in Nigeria,” said Suleiman. “While security challenges directly impact our food supply chain, we cannot wait. We continue to support those who are able to farm while counting on the government to address security concerns and expand available agricultural land.”

Professor Banji Oyelaran-Oyeyinka, Senior Special Adviser to the President of the African Development Bank Group (AfDB) on Industrialisation, provided context to the initiative’s importance, noting that Nigeria spent approximately $10 billion on food imports in 2023.

“We must change this narrative,” he emphasised, calling for Africa to initiate its own Green Revolution within five years. The summit, now in its seventh year, serves as a collaborative platform uniting government officials, private sector representatives, financial service providers, and academics. “The primary objective is to bring together stakeholders to debate issues and develop quickly implementable solutions,” Suleiman explained.

Sterling Bank’s commitment demonstrates a focused approach to agricultural development through single-digit interest loans for women farmers. The initiative particularly emphasises youth engagement in agriculture to ensure sector sustainability, recognising Nigeria’s vast agricultural potential with 84 million hectares of arable land. This strategic investment aims to improve domestic production capabilities and reduce the country’s dependency on food imports.

Sterling Bank’s agricultural investment aligns with its HEART strategy which stands for Health, Education, Agriculture, Renewable Energy and Transport, identifying Agriculture as one of the five key sectors vital for driving Nigeria’s economic growth and development.

Through this strategic focus, Sterling Bank stands as a leading institution in agricultural financing, demonstrating its commitment to transforming Nigeria’s agricultural sector and ensuring food security. The bank’s sustained investment in agriculture through initiatives like the Agriculture Summit Africa and the “SWAY AgFin” programme reinforces its position as a catalyst for agricultural innovation and economic empowerment.

About Sterling Bank:

Sterling Bank is a leading financial institution committed to driving innovation and progress in Nigeria. With a focus on fostering economic growth and development, Sterling Bank invests in cutting-edge technologies and strategic partnerships to propel Nigeria forward in an increasingly competitive global landscape.

Access Holdings Plc has announced that its banking group’s, subsidiary, The Access Bank UK Limited has entered into a binding agreement to acquire a majority equity stake in AfrAsia Bank Limited, the Republic of Mauritius’ third largest bank by total assets.

Mauritius, renowned for its robust financial services sector which contributes 13.4% to its Gross Domestic Product, provides Access UK with a solid foundation to expand its operations in the high-growth personal and corporate banking segments. Furthermore, Access Bank will utilise Mauritius as a strategic hub for trade finance and regional connectivity, thereby enhancing its capacity to facilitate cross-border transactions across Africa and beyond.

The transaction represents a transformational step forward for the Access UK and the overall Access Holdings’ banking franchise. At the end of its fiscal year ended June 30, 2024, AfrAsia Bank recorded Total Assets of more than US$5.7 billion and Net Profit After Tax of US$152.4 million.

Commenting on the acquisition, Roosevelt Ogbonna, Managing Director/CEO of Access Bank Plc and the CEO of the Banking Group said:

“This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading Pan-African financial institution. Mauritius offers immense potential as an international financial hub, and through AfrAsia Bank, we are excited to unlock new opportunities to drive trade, support businesses, and foster economic inclusion across the region as we continue our mission to be the World’s Most Respected African Bank.”

Jamie Simmonds, Managing Director of the Access Bank UK added:

“With a strong balance sheet and a well-established brand in Mauritius, AfrAsia Bank provides us with a sustainable platform to scale and achieve long-term profitability. The deal aligns with our strategy to diversify and future-proof our earnings; and offer bespoke solutions enabling our clients to access global markets with ease.”

The Access Bank UK remains focused on fostering sustainable growth and delivering innovative financial solutions that empower businesses and individuals, while advancing intra- and inter-African trade, unlocking opportunities, and contributing to its economic transformation. Access Bank UK remains committed to providing innovative financial solutions and fostering trade relations between Africa and the rest of the world.

The parties would be working in the coming months to complete the acquisition and would continue to make the required disclosures.

Africa’s Global Bank, United Bank for Africa (UBA) Plc, will raise N239.4 billion through a Rights Issue of 6,839,884,274 ordinary shares of 50 kobo each at N35.00 per share.

The Rights Issue, which opened on Friday, November 15, 2024, gives existing shareholders the opportunity to purchase additional shares in proportion to their current holdings and is being offered based on one new ordinary share for every five existing ordinary shares held by shareholders, as of November 05, 2024.

In his letter to the shareholders informing them, the Group Chairman of United Bank for Africa, Tony Elumelu, noted that following the resolution of the Group’s shareholders at the Annual General Meeting held in May 2024, authorising the establishment of the N400 billion Equity Shelf Programme, UBA will embark on a Rights Issue, as the first step in its broader capital raising programme.

“UBA’s Rights Issue aims to raise N239.4 billion, through the issuance of new Ordinary Shares to our shareholders. The primary objective of this Rights Issue is to further strengthen our capacity to take advantage of growth opportunities and sustain our leadership in the banking industry,” Elumelu said.

Explaining the use of proceeds, the Group Chairman noted that, beyond regulatory compliance, the funds will expand the Group’s lending capacity, investment in digital infrastructure, support sustainable business practices and expanding the Group’s African operations.

Elumelu also highlighted how UBA is driving economic growth across Africa. “Our historic partnership with the Africa Continental Free Trade Area (AfCFTA) Secretariat, where UBA pledged up to US$6 billion in financing over the next three years to support eligible SMEs across Africa underscores our commitment to fostering economic development”.

The issuance is in compliance with the revised minimum capital requirements for Nigerian commercial banks announced by the apex banking regulator in Nigeria – the Central Bank of Nigeria (CBN) earlier this year.

UBA has consistently demonstrated growth and resilience, evidenced by the Group’s strong financial performance and recent recognition within the industry. UBA’s progressive dividend policy, which has seen an increase by 14.8% annualised dividend yield has demonstrated the Group’s ability to reward shareholders consistently. In 2023/2024, UBA won “Bank of the Year” Awards in eight of its subsidiaries – Cameroon, Chad, Ghana, Cote d’Ivoire, Mozambique, Republic of Congo; Sierra Leone; Tanzania, as well as the Regional Award for Africa and in 2024 has won World Best Frontier Markets Bank and Best SME Bank Africa.

Application for the provisional allotment of the Rights to the new ordinary Shares will be made exclusively through the NGX e-offer portal during the offer period, while existing shareholders may also apply for additional shares above their provisional allotment as described in the Provisional Allotment Letter. Shareholders who are customers of the Bank are also encouraged to access their Rights through UBA’s internet banking and mobile banking channels.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries.

With a unique international presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa and globally, through retail, commercial, corporate and institutional banking, innovative cross-border payments and remittances, trade finance and related banking services.

Ecobank Nigeria, an affiliate of Ecobank Group, has been honored with the Client Excellence Award for outstanding performance in institutional cash management for the previous year by Deutsche Bank AG.

During the award presentation in Lagos, Andreas Voss, Chief Country Representative of Deutsche Bank AG, Corporate Bank, congratulated Ecobank for this recognition.

He emphasised that the award reflects Ecobank’s excellence in payment efficiency and cash management. Voss noted that the bank’s commitment to excellence, open communication, and proactive strategies have led to significant achievements for both institutions.

Voss stated: “Ecobank’s dedication to excellence and collaborative spirit have made them an invaluable partner. It was an absolute pleasure working with Ecobank.

Their processing of Straight Through Processing (STP) transactions is a prime example, as Ecobank achieved an STP rate above 99 percent for foreign currency payments and international settlement services. This success underscores the bank’s high SWIFT payment standards, facilitating rapid beneficiary account credits.”

Segun Anjorin, Acting Head of Corporate Banking at Ecobank Nigeria, acknowledged Deutsche Bank as a valuable partner. He noted that the Client Excellence Award symbolises the strong partnership and collaboration between the two banks.

Anjorin reiterated Ecobank’s commitment to providing exceptional quality in payment efficiency and cash management, highlighting how STP implementation enhances operational efficiency and ensures compliance with global payment standards.

About Ecobank Nigeria

Ecobank Nigeria is an affiliate of Ecobank Group, the leading pan-African banking group. We provide a comprehensive suite of financial services and solutions to our Consumer, Commercial, Corporate, and Investment Banking clients through over 250 branches and 60,000 Xpress Point agencies.

Established in 1985, the Ecobank Group aims to promote financial integration and socio-economic development in Africa.

With a presence in 35 sub-Saharan African countries, as well as in France, the UK, UAE, and China, Ecobank boasts unmatched expertise across the continent. Our pan-African platform offers a seamless gateway for payments, cash management, trade, and investment across Africa and beyond.

FBN Holdings Plc’s N150 billion rights issue has gone live on the Nigerian Exchange Group’s (NGX) digital platform, NGX Invest.

This rights issue, offered on a one-for-six basis to existing shareholders, is accessible through NGX Invest, providing a seamless digital channel for eligible investors to participate.
At the “Facts Behind the Rights Issue” event held at the Exchange, FBN Holdings Group Managing Director, Mr. Nnamdi Okonkwo, emphasised the strategic importance of the rights issue, stating, “we will be leveraging our diversified portfolio of businesses and shared resources to ‘do more with less’, optimising costs, improving efficiency, and boosting revenues. We aim to strategically expand into new geographies via both physical and digital approaches while continuing to explore attractive business adjacencies.”

He also noted FBN Holdings’ enthusiasm in utilising NGX Invest’s capabilities, highlighting that “this digital platform allows us to reach a wider investor base and facilitate seamless participation in our capital raise.”
By utilising NGX Invest, FBN Holdings joins six other Nigerian banks that have recently tapped into this innovative platform to distribute a total of eight public offers and rights issues.

This move aligns with the Central Bank of Nigeria’s (CBN) new capital adequacy requirements, which mandate banks to strengthen their capital bases by 2026.

To date, NGX Invest has facilitated approximately ₦1.26 trillion (about $770 million) in capital raises within the banking sector.
NGX Invest’s track record in facilitating capital raises has attracted praise from stakeholders. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), noted that banks using NGX Invest have consistently achieved full subscription levels, often reaching oversubscription.

Similarly, Ladi Balogun, Group Chief Executive Officer of FCMB Group Plc, commended NGX Group for its pivotal role in enabling over 40,000 investors to seamlessly participate in their recent public offering through the NGX Invest platform.
Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, highlighted the platform’s significance, saying, “NGX Invest’s secure and well-regulated infrastructure has rapidly emerged as the top choice for issuers seeking to distribute their offerings digitally. We are proud to support financial institutions and other issuers in their capital-raising efforts, empowering them to reach a wider investor base and drive economic growth.”

KEYNOTE ADDRESS BY THE COMMISSIONER FOR INSURANCE, MR OLUSEGUN AYO

OMOSEHIN, AT THE 2ND EDITION OF THE AFRICAN TAKAFUL AND NON-INTEREST

(ISLAMIC) FINANCE CONFERENCE, HELD IN LAGOS ON 12TH NOVEMBER 2024

Protocol

I am honored to represent the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin,

who is unavoidably absent due to a prior engagement. He extends his sincere apologies and warm greetings to all participants at this conference.

It is also my privilege to deliver this keynote address at the 2nd Edition of the African Takaful and Non-Interest (Islamic) Finance Conference, themed: “Islamic Finance and Takaful; Building Resilience in a Volatile World.”

I extend my gratitude to Noor Takaful for organising this significant event.

As we continue to navigate an era marked by economic volatility, environmental challenges, and social upheavals, the need for innovative solutions is paramount.

While conventional financial systems often fall short in addressing the multifaceted risks faced by individuals and communities, Islamic finance offers a unique perspective rooted in ethical principles and social responsibility.

Islamic finance is not merely a set of financial products; it is a comprehensive system promoting fairness, transparency, and risk-sharing. At its core, it encourages investors to consider the social, ethical, and environmental implications of their financial decisions.

This holistic approach is particularly relevant today, where the consequences of financing extend beyond mere profit and loss.

Driven by increasing demand for Shariah-compliant financial services, Islamic finance in Nigeria is growing rapidly. The sector accounts for approximately 2-3% of Nigeria’s total financial market, valued at $3.8 billion.

Sukuk dominates the market at 59.3%, followed by non-interest banks at 39.8%, and Islamic funds and Takaful at 0.9%. The Islamic financial industry comprises four non-interest finance banks, five Takaful companies, 15 micro-finance institutions, and 10 non-bank financial institutions.

Central to Islamic finance is the concept of Takaful, or Islamic insurance. Unlike conventional insurance, which often involves risk transfer and interest, Takaful is a Shariah-compliant form of insurance based on mutual cooperation and shared responsibility. Participants contribute to a common fund, which is used to support those in need, fostering a sense of community and solidarity.

In a world where climate change, health crises, and economic instability threaten our livelihoods, Takaful offers a resilient framework that provides not only financial protection but also a safety net that empowers individuals and communities to recover from adversities.

By promoting risk-sharing and collective responsibility, Takaful helps mitigate the impact of unforeseen events, enabling families and businesses to bounce back more effectively.

The principles of Islamic finance and Takaful are especially pertinent in enhancing resilience

through risk mitigation, social justice and sustainable development. Permit me to briefly re-emphasise the three key ways they contribute:

Risk Mitigation: Islamic finance encourages diversification and ethical investment, reducing

exposure to high-risk ventures. Takaful, specifically, spreads risks among participants, making it easier for individuals to access necessary financial support during crises.

Social Justice: The emphasis on fairness and equity in Islamic finance ensures that even the

most vulnerable members of society are protected. Takaful promotes inclusivity, allowing individuals from various socioeconomic backgrounds to participate in risk-sharing, thereby fostering social cohesion.

Sustainable Development: Islamic finance aligns closely with the principles of Sustainable Development Goals. By prioritising investment in ethical and socially responsible enterprises, it contributes to economic stability while addressing environmental and social challenges.

The National Insurance Commission has been instrumental in promoting the growth of the

Takaful industry in Nigeria through several initiatives. Since issuing the Takaful Operational

Guidelines in 2013, the Commission has licensed five Takaful operators, with the concept

gradually gaining acceptance.

Although Takaful currently represents 1-2% of the insurance market, the future outlook is promising, considering the average annual growth rate of over 34% in contribution generation recorded by the industry in the last four years.

The Commission has undertaken several initiatives to support the Takaful industry. The initiatives include the application of risk-based capital system which affords takaful operators a more relaxed minimum capital requirements, the proportionate qualification requirements, which facilitate new entrants into the Takaful market in Nigeria, and most importantly, the Market Conduct and Enterprise Risk Management Guidelines for Takaful and Retakaful operators which were issued to ensure best practices and effective risk management.

Furthermore, several stakeholder engagements and sensitisation workshops have been conducted to raise awareness and educate the public about Takaful and its benefits.

We have and continue to collaborate with international standard setting organisations like the Islamic Financial Services Board, and Accounting & Auditing Organisation for Islamic Financial Institutions to provide requisite regulatory guidelines, technical training and support for the industry, among other initiatives.

Additionally, the Commission is working with other regulators in Nigeria to develop more Shariah-compliant investment opportunities for Takaful and other non-interest financial institutions in the economy.

As we face global challenges such as pandemics, environmental hazards, and geo-political uncertainties, the resilience offered by Islamic finance and Takaful becomes increasingly vital.

The recent pandemic has highlighted the fragility of our existing systems and has shown that sole reliance on conventional models may not suffice in times of crisis. The Islamic financial sector has the potential to innovate, adapt and create products that cater to emerging needs.

In conclusion, as we look to the future, let us leverage on the principles of Islamic finance and Takaful to build a more resilient world. Together, we can create a financial system that not only withstands volatility but also promotes prosperity for all.

Let us support policies that will foster partnerships that drive innovation, and educate our communities on the benefits and growth of Takaful and Islamic finance.

I wish you fruitful deliberations and action points that will enthrone a very resilient Islamic

finance and Takaful sector in Nigeria.

Thank you.

• Owanari Duke Retires from Group Board

Africa’s Global Bank, United Bank for Africa (UBA) Plc has announced the appointment of Henrietta Ugboh as an Independent Non-Executive Director.

The appointment has been approved by the relevant regulatory bodies, including the Central Bank of Nigeria (CBN).

UBA’s Group Chairman, Tony Elumelu, CFR, commenting on the appointment, said:

“Henrietta Ugboh brings a track record of professional success, integrity and leadership, which will further strengthen the UBA Group Board, underlining once again the Group’s commitment to robust corporate governance.”

Ugboh holds a degree in Economics and Statistics from the University of Benin, an MBA from ESUT Business School, and is an alumnus of the Harvard Business School’s Executive Management Program. She has over 30 years’ experience in banking with Citibank and is an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria (CIBN) and a Fellow of the Institute of Credit Administration (FICA).

Elumelu added that with her considerable experience and expertise, which includes commercial banking, credit and risk management, the UBA Board is delighted to welcome Mrs. Ugboh to the Group Board.

“We look forward to her invaluable contribution to the Group as we continue to execute our unique growth strategy across Africa and globally.”

The Board also announced the retirement of Mrs. Owanari Duke, an Independent Non-Executive Director, who joined the UBA Group Board in October 2012.

During her tenure, Mrs. Duke provided distinguished leadership, serving on Committees of the Bank including the Board Governance Committee, Board Audit, Governance, Nomination & Remuneration Committee, Board Credit Committee, Finance & General Purpose Committee and Statutory Audit Committee.

On behalf of the Board, Elumelu expressed UBA’s deep appreciation to Mrs. Duke for her dedication and significant contributions to the Group, wishing her the best in her future endeavour.

About UBA

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries.

With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and related banking services.