Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years

…Causing A Somber Trading Session In The Fixed Income Market

The FGN bond market opened the session on a bearish note, as investors digested the inflation report released for the month of February.

With inflation figures at 17.33%, it showed an 86bps increase from the preceding month (16.47% in Jan.), as the hike was due to the continued rise in food inflation.

We observed sell-offs across most bond maturities, as the market reacted negatively to higher-than-expected inflation figures. This, consequently increased average yields by 6bps across the benchmark curve.

With uncertainty in the short-term rates (Treasury Bills primary market auction) and with Bond yields playing at these low levels, we expect investors to remain stony-faced at the underperformance of yields and pursue other alternative investment options in the interim.

Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years- Brand Spur Nigeria
Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years- Brand Spur Nigeria

Treasury Bills

The grim outlook in the bonds market, trickled into the Treasury Bills market, with the inflation report released this morning being the principal reason. We observed slight sell-offs at the short-end of the OMO Bills curve, as Banks looked to offload holdings to help funding pressure, as rates in the interbank market remain at double-digit levels despite OMO maturities of c.N113Bn. We also saw offers on the NTB side of the curve, as local investors were reluctant to invest ahead of the primary auction scheduled for later this week.

With Interbank rates on a high, we expect a quiet session in the secondary market as the market focuses on the NTB primary auction with muted expectations for another hike in stop rates with the volumes on offer relatively smaller than previous auctions.

Money Markets

Liquidity in the interbank market opened at c.N78.92bn, with rates trending slightly downwards following inflows from OMO maturities of N113Bn. The ease in system liquidity allowed local banks to pay down funding from the CBN window, crashing borrowings by c.82.55% D/D at the window. The OVN and OBB rates dropped by c.225bps to close at 10.25% and 10.50% respectively.

We anticipate the market to continue trade at these levels, as no positive liquidity respite is expected to come in for the rest of the week.

FX Market

The Naira depreciated by 85k at the I&E FX window, as the supply squeeze continued to affect the general flow of funds. Approximately $32.33m changed hands (36% lower D/D) as most banks remained bided between N394/$ and N413/$.

The spread between rates at the parallel market widened today, with the cash rate appreciating by N1.50k on one hand while the transfer rate depreciated by N1.00k to close at N494.00/$.

Eurobonds

In today’s trading session, the NIGERIA Sovereign papers traded on bullish sentiments as rates across the sovereign yield curve compressed by c.6bps, as the market awaits the outcome of the US FED meeting today and tomorrow. Investors shrugged off higher local inflation, amidst stability of oil prices above the $65pbl level.

It was a quiet session for the NIGERIA Corps tickers, with most tracked papers unchanged from the previous day’s levels. Yields on the FIDBAN 2022s expanded by 7bps while the UBANL 2022s closed lower by 4bps.

The Nigeria Double Whammy Of Inflation And Unemployment More Of Structured Than Event

The National Bureau of Statistics (NBS) has released the February 2020 inflation figures.

According to the report, inflation rose for the 18th consecutive month in February 2021 and the highest in four years. Notably, headline inflation edged higher to 17.33% compared to the 16.47% recorded in January which is 0.10% higher than our estimate of 17.23%.

On a month-on-month basis, the index advanced by 1.54%, this represents a 0.05% increase to the 1.49% recorded in January 2021.

The Nigeria Double Whammy Of Inflation And Unemployment More Of Structured Than Event-Brand Spur Nigeria

Food Prices Remain Pressured Overarching Impacts of Insecurity & Exchange Rate Bottlenecks

On a sub-component basis, the food inflation sub-index rose from 20.57% y/y in January 2021 to 21.79% y/y in February 2020. Food prices increased by 1.89% representing a 0.06% increase from the 1.83% recorded in January 2021.

One notable factor remains the sustained shortfall in domestic food supply relative to the demand signifying cost-push inflation rather than demand-pull inflation. Specifically, issues of insecurity and supply chain bottlenecks across the country have greatly impacted the prices of food items negatively.

Similarly, the core inflation sub-index went up to 12.38% y/y (vs. 10.52% y/y in Aug-2020) amid a month-on-month increase of 1.21%. Under the core inflation sub-index, the highest price increase was witnessed in transportation and healthcare services.

The Nigeria Double Whammy Of Inflation And Unemployment More Of Structured Than Event-Brand Spur Nigeria

Impact on the Capital Market…NSE ASI down by 6.16% in February

The equities market witnessed significant selloffs across most tickers as the ASI retracted from the late 2020 and January rally. As at the last trading day in January, the market had already gained 5.32% for the year in addition to the record 50.03% gains in 2020.

However, the weekly bearish sentiments started from the first week of February with the market plunging by 1.66% that week. This was followed by three consecutive declines of 3.04%, 0.63% and 0.96% for the remaining weeks in February.

In summary, the market lost about 6.1% in the month of February alone, attributable to the continuous spike in fixed income yields in a bid to curtail rising inflation and also attract foreign investors.

The Nigeria Double Whammy Of Inflation And Unemployment More Of Structured Than Event-Brand Spur Nigeria

Unemployment Not Slowing Down 23.18mn Nigerians Reported Being Jobless

In a separate report by the National Bureau of Statistics on Monday 15th of March, Nigeria’s unemployment rate rose to 33.3 per cent in the fourth quarter of 2020 (Q4 2020) compared to 27.1 per cent in Q2. Notably, an additional 1.42 million people were added to the unemployment pool in the fourth quarter of 2020.

Traditionally, there exists an inverse relationship between unemployment and inflation, i.e. economic growth comes with inflation, which in turn should lead to more jobs and less unemployment. A weak 0.11% economic growth, employment rate above 30% and inflation rate of 17.33% clearly negate the this theory, as such, the country is termed to be facing a situation called stagflation (a period of simultaneous increase in inflation and dwindling economic growth)

While there is no direct solution for stagflation, policies targeted at improving productivity such as enabling business environment (security and infrastructure) has to be increased to the point where it would lead to higher growth without additional inflation.

The Nigeria Double Whammy Of Inflation And Unemployment More Of Structured Than Event-Brand Spur Nigeria

Our Inflation Outlook For The Month Of March

For the month of March, we maintain an upside bias for the headline inflation considering the price impact of the recent spike in PMS pump price that was later reverted. Secondly, food inflation is still being pressured on the back of continued insecurity inhibiting sufficient food production by farmers across the country. Other issues such as logistics constraints, exchange rate instability and high levels of system liquidity are also expected to push prices upward.

NBS Report: Inflation And Interest Rates

Where are interest rates headed? The National Bureau of Statistics (NBS) report for February puts inflation at 17.33% y/y, higher than the print for January at 16.47% y/y, with the critical component of food inflation running at 21.79% y/y.

The upper end of the Central Bank of Nigeria’s (CBN) target range for inflation is 9.00% y/y.

As the CBN argues, inflation is not just about interest rates: structural factors are the key determinant. Insecurity in agricultural supply lines is a critical issue. We believe the following are the main drivers of inflation: structural factors; foreign exchange rates; interest rates; credit growth; commodity prices.

We think that CBN policymakers include interest rates among the factors considered to influence inflation.

NBS Report: Inflation And Interest Rates-Brand Spur Nigeria
Inflation and Interest Rates – Brand Spur Nigeria

After last year’s remarkable decline in market interest rates (1-year T-bill rates fell from 5.40% in January 2020 to 0.15% in early December), rates have been rising this year.

The rise in market interest rates since the beginning of January has been steep (see the chart on the left), with an average of 309 basis points added to the yields of the Federal Government of Nigeria (FGN) bonds with durations of between two and 15 years.

However, over the past month (chart on the right), the yield curve in the secondary market for T-bills and FGN bonds has not changed much, the line waving like a flexed length of rope. Market participants relate that funds still have plenty of liquidity but nevertheless expect rates to continue going up.

This is reflected in the results of the Primary Market Auctions (PMA) of T-bills. Last week the stop-rate for 1-year paper was 6.50% (a yield of 6.95% per annum): two weeks before that the stop rate had been 5.50%. The PMAs are considered more liquid and more representative of rates than secondary-market T-bills.

Is it desirable for market interest rates to trend higher?

In terms of progress towards the rate of inflation, there is little argument. On the other hand, the CBN believes that the low interest rate regime of 2020 was important in alleviating the effects of recession (and indeed, 2020’s recession was lighter than mid-year IMF and World Bank predictions). So, allowing market interest rates to rise now could put a brake on the recovery (the non-oil economy grew by 1.69% y/y in Q4 2020). For this reason, the CBN might tolerate rising rates, but only so far.

Our view is that T-bill rates (in the PMAs) can get to 10.00% per annum by mid-year.

In the meantime, the setting of official rates by the Monetary Policy Council (MPC) of the CBN will continue to tread the delicate path between pro-growth policies and anti-inflationary policies. The current Monetary Policy Rate is 11.5% and the MPC is due to conclude its second meeting of 2020 this time next week. In view of inflation, a cut in the MPR seems unlikely.

In the context of fragile growth, the MPC might retain the 11.5% MPR while allowing market interest rates to climb further. We only rate a small chance of the MPC raising the MPR.

A glimpse of the first ever all-electric BMW i4 at the BMW Group Annual Conference.

At today’s BMW Group Annual Conference the upcoming BMW i4 was revealed.

At today’s BMW Group Annual Conference the upcoming BMW i4 was revealed. “With its sporty looks, best in class driving dynamics and zero local emissions, the BMW i4 is a true BMW. It makes the heart of the BMW brand now beat fully electric,” said Pieter Nota, member of the Board of Management of BMW AG responsible for Customer, Brands, Sales.

A glimpse of the first ever all-electric BMW i4 at the BMW Group Annual Conference. A glimpse of the first ever all-electric BMW i4 at the BMW Group Annual Conference.

The BMW i4 is a fully electric 4 door Gran Coupé and will enter the market during the course of 2021, including a BMW M Performance model. Its refined balance of BMW typical sportiness, comfort and sustainable performance is unique in its segment.

A glimpse of the first ever all-electric BMW i4 at the BMW Group Annual Conference. A glimpse of the first ever all-electric BMW i4 at the BMW Group Annual Conference. A glimpse of the first ever all-electric BMW i4 at the BMW Group Annual Conference.

The BMW i4 model line will be available in different versions covering ranges of up to 590km (WLTP) and up to 300 miles* (EPA). With a power output of up to 390kW / 530HP, the BMW i4 can accelerate from zero to 100km/h in around 4 seconds.

Full details on the BMW i4 will be released over the next weeks.

Eleni Giokos: CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects

In the latest episode of Connecting Africa, CNN International’s Eleni Giokos explores why Africa’s investment in renewable energy projects is so important for pan-African business growth.

Electrification is seen as key in driving economic growth across Africa. But with only 43% of the continent connected to electricity, finding ways to secure and propel the continent towards energy independence means finding sustainable solutions.

Chiboni Evans, CEO of the South African Electrotechnical Export Council, argues that without electrification it will be difficult to increase intra-African trade. She tells Eleni Giokos, “You cannot trade, you cannot manufacture goods and services unless you’ve got the power to power your factories.

Eleni Giokos: CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects- Brand Spur Nigeria
Eleni Giokos: CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects- Brand Spur Nigeria

Even in terms of supply chains, you’re talking using the internet, you’re using digital supply chains. You need the internet. That also needs electricity. So, without electrification, we cannot do anything.”

The next step is to get more big businesses to buy into renewable energy. GridX Africa founder Chalker Kansteiner is using his Nairobi based company to develop cleaner ways to power the commercial sector, “I think there’s large scale industries which are looking at updating their way of doing business, and so I think as there becomes greater confidence in the ability for renewable energy to deliver these sort of quite intense industrial loads, with power, the mining and oil and gas industry will increasingly adopt renewable energy, because it’s lower cost and because they now have confidence in its ability to meet its needs.”

GridX Africa offers solar energy solutions across the continent – from construction and agriculture, to tourism and healthcare. Kansteiner says that deals like the African Continental Free Trade Area agreement stand to aid the expansion of other renewable energy projects across the continent, “To the extent that we could see a continent-wide free trade agreement, the application would be much broader.

CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects-Brand Spur Nigeria
CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects-Brand Spur Nigeria

And so, we have projects in Liberia and Ghana, which would greatly benefit from being able to have imports from our East African projects and from our East African capacity. I think with that in mind distributed power is a huge opportunity for Africa to be a leader.”

Another key player is hydroelectric power. In Kenya’s Muranga County, the programme meets the people behind Magiro Mini Hydro Power. Business Advisor and Director Thomas Poelmans discusses why the concept works well, “We’re basically using the force of the river, and falling from a higher point to a lower point, harnessing that kinetic energy, and transforming it to electric energy. And in Muranga County, in the greater Mount Kenya region actually, Muranga County is so hilly that it has the potential to power about 55% of all of Kenya.”

Magiro is currently operating an off-grid renewable energy system but hopes to develop its first on-grid power plant. Poelmans explains, “We are developing the first on grid power plant that will be providing power to the national electricity grid, and that one will produce power for 15,000 people.”

A further area attracting major funding is the development of wind farms. Ntombifuthi Ntuli, CEO of the South African Wind Energy Association (SAWEA), says that wind power is an underused resource across the continent, “There’s a lot of untapped potential, not just in South Africa, but in the whole continent. And the industry is looking forward to actually turning that into power, to power Africa.”

CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects-Brand Spur Nigeria
CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects-Brand Spur Nigeria

By investing in wind turbines and the engineers and technicians needed to develop, build, and maintain the technology, South Africa has created jobs. Ntuli says these workers and their skills are valued across the world, “The wind turbine technicians that we are training in the country are actually now finding jobs throughout the world, because we have created that capacity, we’re now able to export it to other countries.”

At the Tsitsikamma Community Wind Farm, Giokos meets Danie Du Plessis, CEO of Cennergi. He talks about the importance of including local communities in renewable energy projects, “Employing local labour during both the construction and in the operations phase is very, very important. We have to give back. You cannot do this alone. You have to take the community along. They are part of this business, they are shareholders in the company, they are beneficiaries of the community work that we do.”

Danie Du Plessis on CNN’s Connecting Africa-Brand Spur Nigeria
CNN’s Connecting Africa Explores Pan-African Renewable Energy Projects-Brand Spur Nigeria

Du Plessis says that he sees growth throughout the industry, and he highlights the key projects that will impact renewable energy’s future across the continent, “There are already very good opportunities and fantastic facilities up in Africa. Kenya, Senegal have some very big wind farms. And then Algeria, Egypt, Morocco, Tunisia, you’ve got these massive solar plants and massive wind plants going up. We’ve got good sun, we’ve got lots of wind, and it’s ready to be harnessed.”

Coronation Merchant Bank Records N5.78b Profit Before Tax

Coronation Merchant Bank Limited has announced its Audited Financial Results for the year ended 31 December 2020 and declared a PBT of N5.784 bn.

Commenting on the financial results, Banjo Adegbohungbe, the Managing Director of Coronation Merchant Bank said that “Despite the challenges in our operating environment, we navigated the headwinds that characterized the year to deliver strong results. In a year when the entire world grappled with the debilitating effects of the COVID-19 pandemic, we strengthened our partnerships with our customers and created sustainable value for our shareholders”.

Financial Highlights

  • Total Assets up 63% from N253.35 billion in 2019 to N412.36 billion.
  • Loans and advances to customers up 69% to N122.21 billion as at Dec 2020 (Dec 2019: N72.2 billion)
  • Customer Deposits up 41% to N195.16 billion as at Dec 2020 (Dec 2019: 138.08 billion)
  • Profit After Tax down 1% to N5.040 billion (Dec 2019: N5.097 billion)
  • Shareholders’ Funds up by 16% to N40.11 billion (Dec 2019: N34.57 billion)

Key Ratios

  • Capital Adequacy Ratio: 20.01% as at Dec 2020 (Dec 2019: 19.17%)Regulatory Loan to Funding Ratio: 67.9% as at Dec 2020 (Dec 2019: 71.1%)
  • NPL Ratio: 0% as at Dec 2020 (Dec 2019: 0%)
  • Cost to Income Ratio of 50.3% as at Dec 2020 (Dec 2019: 51.1%)
  • Net Interest Margin: 1.63% as at Dec 2020 (Dec 2019: 2.39%)
  • EPS: 100 kobo (Dec 2019: 101 kobo)
  • Return on Equity 15.49% as at Dec 2020 (Dec 2019: 15.29%)

Despite the volatile environment in 2020, Profit before Tax increased by 15% from N5.024 billion in 2019 to N5.784 billion while Total Assets grew by 63% from N253.35 billion in 2019 to N412.36 billion in 2020. Non-interest income grew by 23%, mainly driven by trading income that compensated for the declining yield environment in the market.

Risk assets increased by 69% as the Bank continued to support its customers through difficult times. Cost of risk remained at a healthy level of 0.14% while Non-Performing Loans was nil; which reflects the efficacy of our risk management framework and sound corporate governance.  Operating expense grew moderately at 14% YoY in spite of the impact of FX devaluation and rising inflation which closed at 15.75% as at December 2020.

During the year, we concluded our maiden international credit rating by Fitch with B- (stable outlook) as at 31 December 2020. The Bank’s bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment is a reflection of the strength of its franchise, the efficacy of its business strategy and its commitment to delivering long-term value for its clients.

In addition to this, the Bank raised several tranches of Commercial papers and issued its maiden subordinated bond which was fully subscribed, raising over N25 billion.  The continued positive results recorded by the Bank in its issues of commercial papers and bonds is a testament to its strong credit rating in the capital markets and growing levels of investor confidence.

Coronation Merchant Bank was established in 2015 to provide wholesale banking to a long-underserved market. The Bank offers Corporate & Investment Banking, Private Banking/Wealth Management and Global Markets/Treasury Services to its niche clientele. It presently has two branches located in Abuja and Port Harcourt with its Head Office in Lagos, Nigeria.

COVID-19 And The Growth Of Technology In Nigeria — FBNQuest

It is often said that the COVID-19 virus has brought an irreversible change in working practices and lifestyle and that the main beneficiaries are the likes of Alphabet, Apple, and Facebook as well as mobile network operators (MNOs).

This has been corroborated in Nigeria’s national accounts, where we see that the only sector to have delivered robust growth through COVID-19 has been information and communications. It grew by 11.1 per cent y/y in 2019, which it managed to push up to 12.9 per cent last year. (Finance and insurance achieved 9.4 percent in 2020 on the back of strong loan book expansion in the first half under regulatory pressure.)

We can see the change in data from the Kenyan Central Bank. When we compare April-December 2020 (life with COVID) with July 2019-March 2020 (pre-COVID), we find a 10 per cent decline in the value of card transactions. For obvious reasons, the fall in point of sales transactions was still lower.

Digital has been the predictable winner: the number of registered digital bank accounts rose by 11 per cent relative to the pre-COVID period and the cash transferred through mobile bank agents at more than twice the pace. We note that the central bank reacted smartly to COVID in March (2020) by cutting the fees, and increasing the upper limit on transactions.

The operating environment for MNOs has been more challenging in Nigeria. They were told to halt the sale of SIM cards in December. All new cards must now be linked to national identification numbers (NINs) by 06 April. We had thought that perhaps one reason for the measures was to collect revenue from a soft target but have been persuaded otherwise. The link, which already exists in Kenya, has security implications since the NIN is required for the issue of a passport, opening of bank account and voter registration.

From the operators’ perspective, the best we can say is that the process is finite, that it is proceeding well according to the regulator and that it affects all players in the industry. More generally and again helped by the COVID, Nigeria has seen good volume growth and investment activity across the technology segment, notably in fintech. Two Nigerian payment platforms (one since acquired by US interests) diversified into e-commerce last year, and we read in the local media that another two are in the process of following their example.

The tech sector has been boosted across the world by COVID: we work from home, talk to our colleagues and clients virtually, follow webinars, attend e-school and support e-commerce for our food, clothing and entertainment. Once we are free (not of COVID-19 but the restrictions put in place to control it), we will revert to some of our old habits such as going to the cinema and eating at a restaurant.

Nonetheless, there has been an underlying shift in behavioral preferences. This has been more marked with the young, who dominate in Nigeria and other emerging economies. The challenge for the tech sector is to broaden access to its products. A minority in Nigeria does not have access to a mobile, often for reasons of connectivity, and a more substantial minority is unbanked. Another result of COVID-19 has been a rise in poverty levels, estimated by the World Bank at more than 15 million Nigerians, which adds to the formidable task of the tech companies.

Zenith Bank’s Shareholders Excited As Bank Pays N94.19 Billion Dividend

Following the recent release of Zenith Bank’s audited financial results for the 2020 financial year, shareholders of the bank, on Tuesday at the 30th Annual General Meeting of the bank held at the Civic Centre, Victoria Island, Lagos unanimously approved the proposed final dividend of N2.70 per share, bringing the total dividend payment for the 2020 financial year to N3.00 per share with a total value of N94.19 billion.

Despite a challenging macroeconomic environment exacerbated by the COVID 19 pandemic, the Group’s gross earnings rose by 5% to N696.5 billion from N662.3 billion reported in the previous year, with an 8% growth in non-interest income from NGN232.1 billion in 2019 to NGN251.7 billion in 2020 and a 1% increase in interest income from NGN415.6 billion in 2019 to NGN420.8 billion in 2020.

Zenith Bank Plc - Resilient Earnings Profile Amid Macroeconomic Headwinds Brandspurng

Similarly, profit before tax (PBT) increased by 5%, growing from N243.3 billion to N255.9 billion in the current year as a result of a blend of growth in the topline and a significant reduction in interest expense.

Interest expense reduced from N148.5 billion in 2019 to N121.1 billion in 2020, significantly increasing the net interest income from NGN267.0 billion in 2019 to NGN299.7 billion in 2020.

The Group’s increased retail activities translated to a corresponding increase in retail deposits and loans. Thus, retail deposits grew by NGN612.7 billion from NGN1.11 trillion to NGN1.72 trillion year-on-year (YoY), while savings balances significantly grew by 88% YoY and closed at NGN1.16 trillion.

This retail drive, coupled with the low-interest yield environment, helped reduce the cost of funding from 3.0% to 2.1% and reduced interest expense.

However, the low-interest environment also affected the net interest margin, which declined from 8.2% to 7.9% in the current year due to the re-pricing of interest-bearing assets. Operating costs grew by 10% YoY but are still tracking well below inflation which at the end of the year stood at 15.75%.

Although returns on equity and assets also reduced from 23.8% to 22.4% and from 3.4% to 3.1%, respectively, the Group still delivered improved Earnings per Share (EPS), which grew 10% from NGN6.65 to NGN7.34 in the current year.

The Group also increased corporate customer deposits, which alongside the growth in retail deposits, delivered total deposit growth of 25%, close at N5.34 trillion, and drove growth in market share. Total assets also increased significantly by 34%, from N6.35 trillion to N8.48 trillion.

Despite the COVID-19 pandemic and its associated challenges, the Group managed to create new viable risk assets as gross loans grew by 19%, from N2.46 trillion to N2.92 trillion. This was achieved while maintaining a stable and low overall NPL ratio of 4.29% (2019: 4.3%) across the entire portfolio and an increase in the cost of risk from 1.1% to 1.5%, reflecting the elevated risk environment in 2020.

The Group recorded impressive liquidity and capital adequacy ratios of 66.2% and 23.0% and remained above regulatory thresholds of 30% and 15%, respectively.

Consistent with this superlative performance and in recognition of its track record of excellent performance, Zenith Bank was voted as Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and Best Corporate Governance ‘Financial Services’ Africa 2020 by the Ethical Boardroom.

Also, the bank emerged as the Most Valuable Banking Brand in Nigeria, for the fourth consecutive year, in the Banker Magazine “Top 500 Banking Brands 2021” and Number One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking published by The Banker Magazine. Similarly, the bank was recognised as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Retail Bank of the year at the 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020.

P&G Head Of Sales Allegedly Spent Firm’s N20m On Online Betting

Operatives of the Uyo Zonal Office of the Economic and Financial Crimes Commission, EFCC, have arrested one Emmanuel Chigozie Eze, a 35-year-old Head of Sales for Procter and Gamble (P&G) company, for allegedly embezzling over N20m (Twenty Million Naira) company funds, which he claimed to have spent on online sports betting.

He was arrested along ‘K-Line area’ of Ewet Housing Estate in Uyo, Akwa Ibom state, following a petition. The petitioner alleged that Eze used his position as Head of Sales for Procter and Gamble, to supply goods worth over N20m to customers and converted same for personal use.

P&G Head Of Sales Allegedly Spent Firm’s N20m On Online Betting Brandspurng

According to the complainant, the suspect between March 2020 and January 2021, sold goods worth the said amount and fraudulently collected monies from various customers using his personal account rather than the company’s account.

Investigations into the matter revealed that the suspect has a severe gambling problem as he spent over N4m placing bets on a daily basis with almost nothing to show for it.

It was also discovered that between July and December 2020, the suspect received over N18m from one of the company’s major customers (name withheld) for goods, which were not fully delivered. According to the customer, she’s still expecting the balance of goods worth over N8m.

The suspect will be charged to court as soon as investigations are concluded.

EFCC Gives Bankers Ultimatum on Asset Declaration

The Economic and Financial Crimes Commission, EFCC, has said that it expects all operators in the Nigerian financial system especially bankers to declare their assets latest June 1, 2021. The Commission’s Executive Chairman, Abdulrashed Bawa, dropped this hint today March 16, while speaking with journalists at the State House, Abuja after a meeting with President Muhammadu Buhari.

The EFCC boss said the move which is pursuant to the Bank Employees, ETC. (Declaration of Assets) Act 1986, is part of measures to sanitize the nation’s financial system and block some of the loopholes currently being exploited by unscrupulous players in the sector to undermine the Nigerian economy through money laundering and illicit financial flows.

EFCC Gives Bankers Ultimatum on Asset Declaration

Section 1 of the Bank Employees, ETC. (Declaration of Assets) Act 1986 makes it mandatory for every employee of a Bank to make full disclosure of assets upon employment, and annually in subsequent years.

The law under Section 7 (1) stipulates that “It shall be an offence for an employee of a bank to own assets in excess of his legitimate known and provable income”.

The penalty for violation of the Act, as spelt out in section 7(2) includes imprisonment for a term of ten years; “Any employee guilty of an offence under subsection (1) of this Section shall on conviction be liable to imprisonment for ten years and shall, in addition, forfeit the excess assets or its equivalent in money to the Federal Government”

Bawa who also expressed worry about youth involvement in cybercrime, however, appealed to parents to take a special interest in the activities of their children. According to him, parents have a responsibility to ensure that they nurture their children with the right set of values to ensure that they are not easily swayed by the allure of easy money through fraud and cybercrimes. He added that youths must learn that there is no shortcut to enduring wealth.