CBN asks FBN to call in Otudeko’s Honeywell Loan Facility within 2 Days

Brand Spur
-
0
CBN asks FBN to call in Otudeko’s Honeywell Loan Facility within 2 Days

In the letter dated April 26, 2021, the Central Bank of Nigeria (CBN) stated, “Consequently, the company (Honeywell Flour Mills) is required to fully repay its obligations to the bank within 48 hours, failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.”

Insider lending is when a bank makes a loan to one or more of its own officers or directors.
Oba Otudeko serves as the chairman of FBN Holdings Plc, the holding company which owns First Bank. Otudeko also served as Chairman of First Bank until 2010 and is also the Chairman of the Honeywell Group.

While insider borrowing is legal, it is subject to several regulations. One such regulation is that insiders do not get any special treatment, incentive rates, or other benefits not offered to regular bank customers.

But the CBN is alleging that First Bank gave special treatment to Honeywell Flour Mills in restructuring its loan facility.

In the same memo seen by the CBN said that it has previously written to First Bank about its interests in the Honeywell Group. One big regulatory concern was Honeywell Flour Mill’s collateral for the loan facility.

According to the memo, “We further noted that in four years, the bank is yet to perfect its lien on the shares of Mr Oba Otudeko in FBN Holdco which collateralised the restructured credit facilities for Honeywell Flour Mills contrary to the conditions precedent for the restructuring of the company’s credit facility.”

In simple terms, First Bank does not have a binding document filed with the CBN that will allow it legally claim the collateral if there’s a default on the loan.

One report from 2017 claims that the loan facility is in the region of ₦75 billion and was non-performing before a recent restructuring. Yet, the apex bank is concerned that First Bank may not have performed its due diligence in securing the collateral for the credit facility.

The apex bank has also asked First Bank to divest its interests in Honeywell Flour Mills Group and Bharti Airtel Nigeria Ltd. Otudeko was named Chairman of Bharti Airtel Nigeria after the Group acquired Zain around 2010.

This order to divest from the apex bank has its roots in yet another bank loan involving Ecobank, Oba Otudeko and some Airtel shares used as collateral.

In 2013, a N5.5 billion loan facility given to Oba Otudeko’s Honeywell Flour Mills by Ecobank became the subject of litigation and is in fact still ongoing at the Supreme Court.
According to news reports, Otudeko’s Airtel shares were used as collateral for Honeywell’s Ecobank loan.

Yet, in an interesting turn of events, those same Airtel shares, as well as some Honeywell assets, were also used as collateral for the credit facility from First Bank.
According to one banking insider, “In a roundabout way, First Bank now owns the assets pledged to Ecobank.”

“So the same asset (Honeywell and Airtel) is allegedly pledged to Ecobank and none of the banks can move in on these assets. First Bank has an equity position while Ecobank has a debt position.”

But Otudeko and Honeywell’s loan are not the only issues at First Bank this week. In a separate memo, the CBN has also taken issues with First Bank over its recent announcement of a new MD/CEO.

On Wednesday, the Board of Directors of First Bank of Nigeria Limited said that it had appointed Gbenga Shobo as its Managing Director/Chief Executive Officer (CEO). Shobo’s appointment followed the news that the former MD/CEO, Dr Adesola Adeduntan, had retired.

But the CBN has now flagged that transition process and said it has no justification because Dr Adeduntan’s tenure has not yet run out, and there was no notification from First Bank to the CBN over the transition.

Given the pace at which the CBN reacted to these developments and demanded action on a 4-year case, one has to wonder how many more systemic infractions the regulator has overlooked and managed all this while.”

Nigeria Reduced Gas Flaring By 70% Over The Past 15 Years – World Bank

Brand Spur
-
0
Nigeria Reduced Gas Flaring By 70% Over The Past 15 Years – World Bank

According to a report by the World Bank, Nigeria and the greater Khanty-Mansiysk Autonomous Okrug (KMAO) region of Russia have both achieved significant progress over the past 15 years, with Nigeria reducing its gas flaring by 70% to just 7 billion cubic meters (bcm) in 2020, and KMAO reducing its gas flaring volumes by nearly 80%, to just over 4 bcm.

This is according to the World Bank’s Global Gas Flaring Tracker Report in which seven countries continue to light up the global map, year after year: Russia, Iraq, Iran, the United States, Algeria, Venezuela and Nigeria have been the largest flaring countries for nine years running since the first satellite was launched in 2012.

While these seven countries have together produced some 40 percent of the world’s oil each year, they have also accounted for roughly two-thirds (65 percent) of global gas flaring.

Gas Flaring
Urhobo women bake krokpo-garri, or tapioca, in the heat of a gas flare in Afiesere. Local people have worked in this way since 1961, when Shell first opened this flow station. Pollutants from the flare cause serious health problems and life expectancy is short
Photograph: Ed Kashi/Corbis

Nigeria: 15 years of progress

Nigeria, the seventh-largest flaring country in 2020. Although the country has remained in the top seven flaring countries, it has nonetheless steadily reduced its flaring by some 70 percent over the past 15 years.

Flaring has declined from over 25 bcm in 2000 to close to 7 bcm in 2020, while oil production has remained essentially flat at around 2 million barrels a day.

Nigeria: Flare volumes and oil production, 2000 – 2020

Gas Flaring
Source: NOAA, Payne Institute and Colorado School of Mines, GGFR, EIA

In February 2021, Timipre Sylva, minister of state for petroleum resources, said:

“Nigeria is committed to achieving the global consensus on the elimination of gas flaring by 2025, adding that “today, we have actually reduced gas flaring significantly to a very minimal level of eight percent”.

Demetrios Papathanasiou, global director for the energy and extractives global practice at the World Bank, said:

“In the wake of the COVID-19 pandemic, oil-dependent developing countries are feeling the pinch, with constrained revenues and budgets. But with gas flaring still releasing over 400 million tons of carbon dioxide equivalent emissions each year, now is the time for action.

“We must forge ahead with plans to dramatically reduce the direct emissions of the oil and gas sector, including from gas flaring”.

Zubin Bamji, program manager of the World Bank’s GGFR partnership trust fund, said:

“Awareness of gas flaring as a critical climate and resource management issue is greater than ever before. Gas flaring reduction projects require significant investment and take several years to produce results.

“In the lead-up to the next UN Climate Change conference in Glasgow, we continue to call upon oil-producing country governments and companies to place gas flaring reduction at the center of their climate action plans.

“To save the world from millions of tons of emissions a year, this 160-year-old industry practice must now come to an end”.

In 2020, oil production declined by 8 percent (from 82 million barrels per day (b/d) in 2019 to 76 million b/d in 2020), while global gas flaring dropped by 5 percent (from 150 bcm in 2019 to 142 bcm in 2020)

The United States accounted for 70 percent of the global decline, with gas flaring falling by 32 percent from 2019 to 2020, due to an 8 percent drop in oil production, combined with new infrastructure to use gas that would otherwise be flared

While the United States saw a 32 percent drop in gas flaring, the country’s main three shale oil-producing regions – the Permian and Eagleford in Texas, and the Bakken in North Dakota – continued to account for over 90 percent of the gas flaring in 2020. However, combined flaring from these three regions declined by over 5 bcm in 2020, partly due to a reduction in oil production and the drilling of new wells, but also as a result of increasing volumes of flare gas being connected to existing and new gas pipeline network.

Russia tops the list of global gas flaring countries in 2020, contributing to 15 percent of global gas flaring. Mixed performance is seen across Russia: with a significant increase in flaring at oil production sites in East Siberia, alongside significant improvements in a flaring reduction in the KMAO region in West Siberia.

Gas flaring in China increased by 35 percent; China was the ninth highest flaring country globally in 2020. Most of this increase was from new field developments in the West of China.

Nigeria Among Top Gas Flaring Countries Globally – World Bank

Esan Bolaji
-
0
Nigeria Among Top Gas Flaring Countries Globally – World Bank

Nigeria alongside Russia, Iraq, Iran, United States, Algeria and Venezuela are the top gas flaring countries in the world, according to a report by the World Bank.

2020 was an unprecedented year for the oil and gas industry and a historic time for the world. The COVID-19 pandemic dampened oil demand, prices and production, while oil-dependent countries experienced negative impacts on their revenues and national budgets.

Gas Flaring Countries

The World Bank’s 2020 Global Gas Flaring Tracker, a leading global and independent indicator of gas flaring, found that from 2019 to 2020, oil production declined by 8 percent, while gas flaring dropped by 5 percent. Nonetheless, the world still flared enough gas to power sub-Saharan Africa.

7 countries account for two-thirds of global gas flaring

The United States accounted for 70% of the global decline, with gas flaring falling by 32% from 2019 to 2020, due to an 8% drop in oil production, combined with new infrastructure to use gas that would otherwise be flared.

Seven countries continue to light up the global map, year after year: Russia, Iraq, Iran, the United States, Algeria, Venezuela and Nigeria have been the largest flaring countries for nine years running since the first satellite was launched in 2012.

While these seven countries have together produced some 40 percent of the world’s oil each year, they have also accounted for roughly two-thirds (65 percent) of global gas flaring. This trend is indicative of ongoing, though differing, challenges facing these countries.

For example, the United States has thousands of individual flare sites, difficult to connect to a market, while a few high flaring oil fields in East Siberia in the Russian Federation are extremely remote, lacking the infrastructure to capture and transport the associated gas.

Demetrios Papathanasiou, global director for the energy and extractives global practice at the World Bank, commented: 

We do see some marked improvements in a variety of regions and contexts. The United States performed particularly well in 2020, with gas flaring falling by 32 percent from 2019 to 2020, partly due to an 8 percent drop in oil production, but also through the construction of infrastructure to use gas that would otherwise be flared.

The United States’ reduction accounted for 70 percent or 5.5 billion cubic meters (bcm) of the global decline.

Meanwhile, Nigeria and the greater Khanty-Mansiysk Autonomous Okrug (KMAO) region of Russia have both achieved significant progress over the past 15 years, with Nigeria reducing its gas flaring by 70 percent to just 7 bcm in 2020, and KMAO reducing its gas flaring volumes by nearly 80 percent, to just over 4 bcm.

UAC Reports 41.7% Drop in Profit to ₦669M in Q1 2021

Esan Bolaji
-
0
UAC Reports 41.7% Drop in Profit to ₦669M in Q1 2021

UAC of Nigeria PLC (UAC) announced its unaudited results for the quarter ended 31 March 2021.

Highlights

  • Revenue 13% ahead of Q1 2020 at ₦22.0 billion, driven by sales growth in the Animal Feeds & Other Edibles segment and the Packaged Food & Beverages segment.
  • Gross margin 344 bps lower due to rising raw material prices and supply chain disruptions.
  • Operating profit 1% higher at ₦1.1 billion, supported by revenue growth and cost management efforts.
  • Net finance income 77% lower at ₦109 million on account of lower average yields year on year.
  • Profit after tax from continuing operations was ₦669 million, down 42% from ₦1.1 billion in Q1 2020.
  • Earnings per share from continuing operations was 12 kobo, 56% lower than 27 kobo recorded in Q1 2020.
  • In Q1 2020, UAC recorded ₦717 million from discontinued operations which impacts quarter on quarter comparison.

Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated:

“Growth across our operating platforms translated to 13% revenue growth. Operational improvement initiatives resulted in a 6% reduction in operating expenses which supported marginal operating profit growth in spite of a 5% decline in gross profit.”

“Raw material cost escalation remains a key concern and as such we are carefully assessing pricing. Our Paints business suffered production disruptions which impacted performance and our interest income declined materially in light of the low interest rate environment.”

“These together with losses from our associates UPDC and MDS resulted in a 42% decline in profit from continuing operations. Performance in Q1 2020, being the comparative quarter last year, benefited from N717 million in exceptional income from discontinued operations relating to net gains from the divestment of a stake in MDS which impacts quarter on quarter comparisons.”

Group Performance and Financial Review: Q1 2021

Revenue in Q1 2021 increased 12.7% YoY to ₦22.0 billion. Revenue growth wassupported by sales growth in all operating segments apart from Paints. Animal Feeds & Other Edibles segment (+12.7% YoY) driven largely by price increases in reaction to rising raw material costs.

Packaged Food & Beverages segment (+25.1% YoY) and the Quick Service Restaurant segment (+21.0% YoY). Revenue in the Paints segment was 4.9% lower YoY; lower sales as a result of supply chain disruptions and availability of key raw materials which impacted production in the first quarter of the year.

Gross profit in Q1 2021 declined 5.2% YoY to ₦4.0 billion on account of currency devaluation and supply chain disruptions which resulted in higher raw material prices in the Paint segment, as well as higher raw material prices in the Packaged Food and Beverages segment. Animal Feeds & Other Edibles reported margin improvements on account of price increases in response to the rising price of raw materials, as well as a decrease in operating expenses.

Operating Profit was ₦1.14 billion in Q1 2021, a marginal increase of 0.8% from ₦1.13 billion in Q1 2020. In addition to revenue growth, operating profit was supported by cost management efforts. Operating expenses in Q1 2021 were 6.1% lower than the same period last year.

Profit after Tax from continuing operations was ₦669 million, down 41.7% YoY against ₦1.1 billion in Q1 2020. Decline was attributable to 76.9% decline in net finance income and share of loss from associates (UPDC and MDS) in Q1 2021, a reversal from share of profit from associates in Q1 2020.

Total profit for the period was ₦669 million in Q1 2021, a 64.1% decline from the ₦1.9 billion reported in Q1 2020. Variance is due to profit from discontinued operations which was recognised in Q1 2020.

Earnings per share from continuing operations for Q1 2021 was 12 kobo, a decline of 56% from 27 kobo in Q1 2020.

Lafarge Africa Reports Strong Net Income Growth in Q1 2021

Esan Bolaji
-
0
Lafarge Africa Reports Strong Net Income Growth in Q1 2021

Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim announced Strong Net Income Growth in Q1 2021 Result.

  • Prioritisation of Health, Safety and Environment measures for all stakeholders
  • Net Sales up 12.2% vs PY with over-proportionate growth in recurring EBIT up 24.2% vs PY
  • Strengthened Balance Sheet with a net cash position of N22.4bn vs N3.6bn end 2020

Group Q1 2021

Lafarge Africa Reports Strong Net Income Growth in Q1 2021 Brand Spur Nigeria

Khaled El Dokani, CEO of Lafarge Africa, commented:

“Our Q1 2021 performance was resilient, with net sales of +12.2%, recurring EBIT of +24.2% and net income of +13.3%, compared to the previous year. The implementation of our “HEALTH, COST & CASH” action plan continued to deliver results in Q1 2021”.

OUTLOOK 2021

  • Good demand momentum expected in Q2 2021.
  • We will continue to maximise volume opportunities in our core markets and drive our “HEALTH, COST & CASH” action plan to manage costs.
  • We will strengthen our efforts in the area of Sustainability.

Guinness Nigeria Records 20% And 35% Growth In Revenue And Profit

Esan Bolaji
-
0
Guinness Nigeria Records 20% And 35% Growth In Revenue And Profit

Guinness Nigeria, a subsidiary of Diageo Plc, and a leading total beverage alcohol company in Nigeria has posted a revenue of N114,956,362,000 (one hundred and fourteen billion, nine hundred and fifty-six million, three hundred and sixty-two thousand) for the 9 months ended 31 March 2021 which represents a 20% growth over the same period last year.

The Company reported a Profit After Tax of N1,838,049,000 (one billion eight hundred and thirty-eight million and forty-nine thousand) in the period under review which represents 35% over the same period last year.

Guinness Nigeria Renewed demand strength to prop Revenue in Q1

Key financial metrics:

  • Revenue increased 20%
  • Operating profit increased by 46%
  • Marketing spend increased by 2%
  • Profit after tax increased 35%

The results show an impressive performance and a significant improvement when compared to the same period last year, a testament to an unwavering commitment to meeting consumer demands as well as the company’s resilience in a challenging operating environment.

Commenting on the announcement, Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said:

“In the 3 months ended 31 March 2021, Guinness Nigeria has delivered a growth of 54% in the face of the challenging operating environment leading to a turnaround in the overall performance of the business in the 9 months of our financial year so far. This stellar growth in the third quarter of our financial year is the main driver of the year to date 20% revenue growth.

The growth is encouraging however considering varying degrees of Covid-related restrictions which remain. Growth was primarily driven by increased off-trade channels sales and at-home consumption. The strong growth is also partly because of a weak third quarter of the previous financial year when VAT increase took place and COVID lockdown commenced.”.

“We have delivered broad-based growth driven by double-digit growth across all our focus brands and categories has further shown that our strategy is sound, and we are making unswerving moves to ensure our long-term competitiveness in Nigeria. Despite the reduction in exports, Guinness delivered double-digit growth in volumes and revenue with the new Guinness Smooth innovation contributing significantly to this.

Malta Guinness continued its strong growth mainly driven by the one way can format. Continued double-digit growth in local spirits, imported spirits and Ready-To-Drink (RTDs) tells us that these categories are on track to deliver their medium-term strategic revenue contribution to our business growth”.

Operating profit grew by 46% as productivity savings in distributions and administration costs, and reduced spend due to some existing COVID restrictions mitigated inflation and foreign exchange devaluation impact on the cost of sales. Profit after tax increased by 35%.

“The Management at Guinness Nigeria remains resolute in its business strategy, as well as its engagement of stakeholders across its value chain. We remain fiercely committed to having a positive impact on those around us and our consumers, and we continue to take giant strides towards keeping this commitment.

We recently signed an MOU with the Federal Road Safety Corps for the adoption of our E-learning Responsible Drinking Education Module to complement the curriculum for training and testing drivers and everyone who chooses to drive on our roads as part of our efforts to champion responsible drinking.

We also launched a new sustainability initiative globally through our Johnnie Walker brand, to ensure a more sustainable future for all. These efforts are in line with the strategy for consistent delivery of value for all stakeholders.”

Mr. Babatunde Savage, Chairman of the Board of Guinness Nigeria Plc, in also commending the impressive result, said

“The Board will continue to support the Management to build a business that will consistently deliver growth for all our stakeholders”.

CBN Returns Adesola Adeduntan As MD, Orders Immediate Removal Of All Directors of FBN Limited & Holdings

Brand Spur
-
0
CBN Returns Adesola Adeduntan As MD, Orders Immediate Removal Of All Directors of FBN Limited & Holdings

The Central Bank of Nigeria (CBN) has reinstated Adesola Adeduntan as MD/CEO of First Bank Nigeria (FBN).

The CBN also sacked all directors and named new board members for both FBN and FBN Holdings.

Brand Spur had earlier reported that the CBN queried the Board of the bank for removing Adesola Adeduntan as the Managing Director/Chief Executive Officer, as appointing Gbenga Shobo as MD/CEO designate without regulatory approval.

The CBN had also faulted the appointment of Abdullahi Ibrahim as deputy managing director, as well as the appointment of Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu, as executive directors had earlier reported that the apex bank queried the Board of the bank for removing Adesola Adeduntan as the Managing Director/Chief Executive Officer, as appointing Gbenga Shobo as MD/CEO designate without regulatory approval.

The CBN had also faulted the appointment of Abdullahi Ibrahim as deputy managing director, as well as the appointment of Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu, as executive directors.

Affected board members include Oba Otudeko and Ibukun Awosika.

EQUAL Hub: Spotify Launches EQUAL’s Music Program

Brand Spur
-
0
EQUAL Hub: Spotify Launches EQUAL’s Music Program

…Ghana’s Gyakie Becomes First African Singer To Join The Global Program

Spotify recently unveiled its EQUAL hub in celebration of International Women’s Day. On the heels of this launch, the leader in all things audio will now extend its global commitment to fostering equity for women in music with its new EQUAL Music Program debuting today.

The global initiative is uniquely designed to foster gender equity in music by adapting and extending the cumulative blueprint of Spotify’s successful programs into a cohesive experience – supporting female creators under one brand.

Only 1 in 5 artists in the charts are women, a stark contrast to how integral women’s influence is to Spotify’s success today and the music industry at large. Spotify takes the responsibility of upending these disparities seriously and believes the first step towards amplifying the work of all creators identifying as women are to extend critical resources to this community to create opportunity.

Speaking on the initiative, Phiona Okumu, Spotify Head of Music Sub-Saharan Africa said, “In a time where we as a society are re-examining equity on so many levels, Spotify is prioritizing its goal to make female faces and voices seen and heard.

“Our goal is to lead by example, joining hands with the African music industry stakeholders with the means and platform to help elevate the next generation of women in the music industry to deserving new heights.”

Spotify’s inaugural class of EQUAL artists kicking off the program includes Ghanaian Afrobeats & Afro-fusion singer Gyakie, who is the first African creator to be selected for the program.

The 20-year-old singer who recently released her debut EP ‘Seed’ has not only gained popularity in Ghana but in Nigeria and Kenya where her single ‘Forever’, is a chart-topping fan favorite, with its remix featuring Omah Lay not far behind.

“I am deeply honoured to be the first African woman to partner with Spotify for EQUAL. This is huge for so many women across the continent and the entire globe. I don’t take this lightly at all. Navigating an industry, where the voices of women can easily be drowned out, I’m committed to playing my part…with volume,” says Gyakie on her inclusion in the program.

Other female artists selected for the inaugural class include American rapper Saweetie, Brazillian pop artist DUDA BEAT, British singer-songwriter Griff, Mexico’s Natalia Lafourcade and German singer Zoe Wees – Global Artist of the Month.

The full program includes:

  • EQUAL local playlists: Each playlist will reflect the 35 markets spanning over 50 countries – from Japan to Argentina, from the UK to Ghana.
  • EQUAL Global Playlist: The “best-of” flagship playlist will contain music from EQUAL artists from all around the world, as the ultimate listening experience amplifying the EQUAL class of each month beyond borders.
  • EQUAL Artists of the Month: One artist from each participating market will be featured on the cover of their respective, local playlist.
  • Artist marketing: Each EQUAL Artist of the Month will be supported with organic and on-platform promotion throughout the Spotify editorial space – which has proven to propel significant growth on the platform in both artists’ home countries and beyond.
  • Created By Women Playlist: The co-branded EQUAL + NOTABLE playlist is the first of its kind, which will feature 40 songs 100% written, produced, and performed exclusively by women songwriters, producers, and artists from around the world. The new playlist will give fans a new dedicated place to discover music from a host of talented creators with diverse perspectives.

EQUAL Board: A network of organizations joining forces with Spotify to empower women around the world including She’s the Music (US), Girls Rock Australia Network (Australia), She Said So (Italy), MEWEM Europa (Europe), Girls Connected (Canada), Music Women (Germany).

  • EQUAL Directory re-launch: Spotify is partnering with SoundGirls, to relaunch the EQUAL Directory, formally EQL Directory. The Directory allows women of all experiences and gender-nonconforming creators to create a profile and claim their space in the community of women changing the game in audio. You can search The EQUAL Directory by region and audio discipline to find suitable candidates to hire for your next tours and events, studio projects, film, and TV production, game audio, post-production, podcasts, and more.

Adesola Adeduntan…Footprints Of An Astute Banker And Super Turnaround Manager

Esan Bolaji
-
0
Adesola Adeduntan…Footprints Of An Astute Banker And Super Turnaround Manager

Adesola Adeduntan, the Managing Director of First Bank is a miracle worker. Unlike the middling marabou, his miracles aren’t deceptive in nature, rather, each one is an event that creates faith in his abilities as fiscal guru and bank chief. Adeduntan is not just an administrative Managing Director (MD) but a seasoned leader.

Administrators may be easy and cheap to come by, and even cheaper to keep, but leaders are worth their weight in gold. Leaders are risk-takers and they are often in very short supply; ones with enduring vision, however, like Adeduntan, are pure gold.

Adesola-Adeduntan-First bank Adesola Adeduntan…Footprints Of An Astute Banker And Super Turnaround Manager Brand Spur
Adesola Adeduntan | Brand Spur Nigeria

When he assumed the mantle of leadership at First Bank, pundits believed he had been appointed to play the role of an undertaker due to the destructive plunder visited on the bank by its previous directors and managers.

Not long after taking over, the hitherto written off first-generation bank was rescued from the throes of bankruptcy and near collapse. Thanks to Adeduntan’s ingenuity! Besides entrenching a culture of professionalism and excellent results in the bank, he ensures that there are no more dirty deals going on at the top level of the bank as well as within the bank’s halls.

Sanity has since returned to First Bank, even as you read. The bank chief understands that leadership is not just about operationalising some empty formulas but establishing a deep connection at the group and personal levels through service, determination, uprightness, and poise.

Within the period he has transformed the bank via visionary initiatives and he has also done a great deal to reclaim debts owed the bank by defaulting clients. Since he assumed leadership, he has outlawed dirty loan deals and is currently on a very successful crusade to reclaim huge loan debts from the bank’s chronic debtors.

Little wonder some disgruntled elements within the bank want him out by all possible means. This unscrupulous group, without recourse to regulatory approval of the Central Bank of Nigeria, engineered the removal of Adeduntan – a move that has since been queried by the CBN. The query is contained in a letter dated April 28, 2021, signed by the CBN Director, Banking Supervision, Haruna Mustafa.

The letter noted that CBN’s attention has been drawn to media reports that the Board of Directors has approved the removal of the current Managing Director of the bank, Dr. Sola Adeduntan and appointed a successor.

The apex bank stated that it was concerned that this action was taken without due consultations with the regulatory authorities especially given the systemic importance of First Bank Ltd.

The Bank noted that since Adeduntan’s tenure was set to expire and there was no report from the Board of any infraction, there, therefore, appears to be no apparent justification for the removal.

The CBN said it was particularly concerned because the purported removal of Adeduntan was coming at a time the CBN has provided various liquidity support to reposition the bank.

Adding “It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiry of his second tenure which is due on December 31, 2021.

“The removal of a sitting MD/CEO of a systemically important bank that has been under regulatory forbearance for 5 to 6 years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.

Adesola was appointed the Executive Director/Group Chief Financial Officer of First Bank, in July 2014. As the Executive Director/Group CFO, he handled the banks’ financial control, internal control and enhancement, business performance management, treasury and procurement functions.

After two years with First Bank, Dr Adesola was appointed the Managing Director of the bank, succeeding Bisi Onasanya. He resumed the role on the 4th of January 2016.

Dr Adesola’s office covers the banks’ commercial banking subsidiaries which include: FBN UK, FBN Ghana, FBN DRC, FBN Guinea, FBN Gambia, FBN Mortgages, and First Pension Custodian Limited.

After Adesola concluded his compulsory NYSC service year, he got a job at the main branch of Afribank (Nig) Plc, Ibadan, as a graduate trainee. He worked at Afribank for 18 months, carrying out different banking operations, including cash management, clearing, credit risk management, and foreign operations.

Dr Adesola left Afribank in September 1995 and started working with Arthur Andersen Nigeria. He rose to a managerial role in the firms’ financial department, before leaving the firm in May 2002.

As a manager, Dr Adesola pioneered and supervised the statutory audit of some leading Nigerian banks. Before he became a manager, he was the lead instructor of the local office basic accounting training and induction course in 1999. In 2000, he served as an instructor at the Andersen World-Wide induction training for new hires in Eindhoven, Netherlands.

What Is Driving The Proliferation Of Cryptocurrencies In Nigeria?

United Capital Research
-
0
What Is Driving The Proliferation Of Cryptocurrencies In Nigeria?

Nigeria continues to rank among the leading cryptocurrency (crypto) hotspots in the world. According to a Statista survey, 31.9% of Nigerians surveyed in 2020 used cryptocurrencies, the largest proportion of any nation in the world.

Furthermore, Statista also reported that Nigeria ranked third, in terms of Bitcoin (the most popular crypto) trade volumes, just behind the United States and Russia in 2020.

What Is Driving The Proliferation Of Cryptocurrencies In Nigeria Brand Spur

Recently, the Central Bank prohibited Deposit Money Banks and other financial institutions from crypto-related transactions and ordered banks to shut down accounts associated with cryptocurrencies. Regardless, the fast-rising number of crypto transactions in Nigeria has persisted.

Expectedly, Nigerians continued to transact in cryptocurrencies despite the Apex bank pronouncement, doubling down on peer-to-peer transactions, where users simply bypass financial intermediaries and connect directly to each other, usually through an exchange platform.

For instance, Paxful, a leading peer-to-peer exchange platform, recently announced that Nigeria is now its largest market with a total traded volume of $1.5bn to date. In our view, economic realities in Nigeria set the stage for a myriad of use cases for crypto.

Over the last 5 years, the country has been hit by two recessions, a string of currency devaluations and severe dollar shortages which continues to hurt trade, pressure general price level and weaken per capita income, rendering cryptocurrencies, high-risk digital assets with huge upside potential, appealing.

Notable use cases observed amongst Nigerians range between speculative trading, currency hedge/value preservation, making domestic and cross-border payments and even facilitating social movements (recall the EndSARS protest).

Thus, if the digital revolution, which is fast-spreading across different facets of the global economy (FinTech, BigTech, AI, E-commerce, AI, Big-Data, etc.) is anything to go by, it is clear that cryptocurrency adoption, and speculation alike, will continue wax stronger in Nigeria and the rest of the continent.

However, regulatory scrutiny and interest will also persist as governments continue to seek ways to maintain their role of enforcing law and order as well as protecting the public interest.

1...1,9941,9951,996...3,974Page 1,995 of 3,974