BusinessDay 21 Aug 2018

16
BUSINESS DAY
COMPANIES & MARKETS
C002D5556
Tuesday 21 August 2018
Nigerian Development Finance Institutions
total assets up 36.8% to N1.3trn
HOPE MOSES-ASHIKE
The total assets
of the even Development
Finance
Institutions
(DFIs), including
Development Bank of Nigeria
(DBN) and the Nigeria
Mortgage Refinancing Company
(NMRC), increased
significantly by 36.8 percent
on a year-on-year basis, to
N1.3 trillion at the end of
December 2017.
The other DFIs include
Bank of Industry (BOI), the
Federal Mortgage Bank of
Nigeria (FMBN), Development
Bank of Nigeria (DBN),
the Nigerian Export-import
Bank (NEXIM), the Bank of
Agriculture (BOA), the Nigeria
Mortgage Refinancing
Company (NMRC) and The
Infrastructure Bank (TIB).
Analysis of the asset base
by institutions indicated that
the BOI accounted for 54.2
percent of total assets, FMBN
19.5 percent, the DBN 11.6
percent, the NEXIM 5.6 percent,
the BOA 5.3 percent,
NMRC 3.2 percent, and TIB
accounted for 0.6 per cent of
total assets.
Similarly, the paid-up
capital of the sub-sector increased
by 2.7 per cent (yearon-year),
to N236.99 billion,
at end-December 2017.
The net loans and advances
of the institutions also
increased by 21.3 percent to
N693.75 billion in 2017, above
N571.85 billion in 2016. The
proportion of the industry net
loans and advances, attributed
to each institution, were:
BOI, 73.3 percent; FMBN, 19.3
percent; NEXIM, 5.6 percent;
NMRC, 1.1 percent; BOA, 0.6
percent; TIB, 0.1 percent; and
DBN, 0.03 percent. The shareholders’
fund increased to
N247.31 billion in 2017, from
N205.35 billion in 2016 due,
mainly, to the consolidation
of the financial data of the
NMRC and the DBN.
The draft annual report
of the Central Bank of Nigeria
(CBN) noted that the
3rd Bi-annual Consultative
Forum for the stakeholders
of the Development Finance
Institutions was held in Abuja
in 2017.
The Forum identified
weak corporate governance,
poor risk management and
inadequate capital as major
challenges confronting the
sub-sector. The Forum recommended
policy options
to address the challenges,
enjoined stakeholders to
guard against mission drift
and reiterated the need for
them to pay-up outstanding
equity contribution.
The report disclosed that
the total assets of the Nigeria
Mortgage Refinance Company
(NMRC) stood at N42.26
billion at end-December
2017, compared with N41.57
billion at end-December
2016. Similarly, refinanced
mortgages increased by
N0.15billion to N8.15 billion
in 2017, above N8.0 billion in
2016, reflecting the creation
of additional mortgages.
The adjusted capital of
N9.693 billion was higher
than the minimum capital
requirement of N5.0 billion
for the Company. Similarly,
the capital adequacy ratio
and adjusted capital to net
credit were 139.83 and 1:1.84
at the end of December 2017
and complied with the regulatory
minimum and maximum
of 10 per cent and 1:10,
respectively.
Darling Nigeria street Catwalk across various locations in Lagos showing their new innovative range of hair products.
Air Peace will unite Nigeria with flight operations - Onyema
IFEOMA OKEKE
Air Peace, one of Nigeria’s
leading carriers,
says it’s embarking on
massive expansion of
its domestic flight operations to
close the gap in air travel across
Nigeria and also build bridges of
unity in Nigeria.
Allen Onyema, chairman/
chief executive officer of Air
Peace made the remark in Kaduna
in an address to mark the
commencement of Air Peace’s
daily flights from the Murtala
Muhammed Airport, Lagos to
the Kaduna International Airport.
The launch of the airline’s
Lagos-Kaduna service came
exactly a week after the carrier
started scheduled flights from Lagos,
Abuja and Accra to Roberts
International Airport, Monrovia,
Liberia.
Onyema, who was represented
by Chris Iwarah, corporate
communications manager,
Air Peace described the launch
of the carrier’s Lagos-Kaduna
service as a “significant milestone
in our vision to unite our
dear country, Nigeria through
air travel and lift the nation’s
economy through trade facilitation
and massive job creation.”
He said the airline, which also
launched its daily flights to Kano
and Yola on February 12 and 15,
2018 respectively, was working
on setting up mini-hubs across
Nigeria and the West Coast of
Africa to strategically fix the challenges
of air travel.
“Our plan”, he said, “is to
massively expand our operations
from our base in Lagos
into mini-hubs across all regions
of Nigeria and the West
Coast of Africa. We assure you
that the North of Nigeria will be
one of the biggest beneficiaries
of the massive expansion of
our route network and fleet
capacity. Since the first quarter
of 2018, we have begun to take
delivery of the six 50-seater Embraer
145 aircraft we recently
acquired to serve cities with air
transport difficulties under our
subsidiary Air Peace Hopper.
“There is no doubt that as
the leading and biggest airline
in Nigeria with a fleet size of 24
aircraft, we are now more positioned
to transform air travel
experience in Nigeria, the West
Coast of Africa and beyond.
But more importantly, we are
proud to use our flight services
to build bridges of unity in Nigeria.
We are not just achieving
this by extending our flight op-
erations across Nigeria without
restriction, we also are doing so
with our employment policy
that does not discriminate on
the grounds of religion, tribe
and creed.”
Onyema assured air travelers
on the Lagos-Kaduna route of
efficient, on-time and safe flight
operations.
“We are coming into the Kaduna
route with a reputation for
on-time performance and uncompromising
stand on matters
of safety. We promise to leverage
the experience of our skilled staff
and excellent business model to
end the challenges of air travel on
the Kaduna route and make Kaduna
more accessible to leisure
and business travellers,” he said.
On his part, Shehu Idris, the
emir of Zazzau, praised Air Peace
for commencing flight operations
to Kaduna.
FBNQuest Merchant
Bank assigned “A”
rating by Agusto & Co
MICHEAL ANI
FBNQuest Merchant
Bank, the investment
banking and
asset management
subsidiary of FBN
Holdings Plc has been assigned
‘A’ rating by Agusto &
Co. Limited, according to a
statement published Friday,
on the website of the rating
agency.
The rating agency said the
rating reflects the bank’s affiliation
with FBN Holdings,
the non–operating holding
company of one of the largest
banking and financial services
organisations in Africa with an
asset base of N5.2 trillion(N15.7
billion @ 358;331/$) as at 31
December 2017.
The bank was ranked first
on local currency deposits of
the five merchant banks operating
in Nigeria as at FYE2017,
but ranked fourth by total
assets and contingents due
to its experienced and stable
management team which
provides oversight of its daily
operations.
The rating recognises FB-
NQuest MB’s good capitalisation
and good profitability
during the period, supported
by its acceptable asset quality,
investment banking expertise
and trading activities.
“Nonetheless, FBNQuest
MB’s rating is constrained
by concentration in its loan
portfolio which renders it
vulnerable to adverse changes
in the performance of its lending
sectors and obligors. The
opinions expressed in this
rating release do not represent
investment or other advice
and should therefore not
be construed as such.” The
rating agency said in a press
statement.
Agusto & Co is Nigeria’s
first Credit Rating Agency and
a Pan African leader in credit
ratings and credit reports.
It has assigned well over
1,500 ratings across various
sectors. Our ratings are globally
accepted, and a wide client
base utilizes our ratings as
benchmark for business.
FBNQuest Merchant Bank
recently acted as Lead Financial
Adviser & Issuing House
on the Listing by Introduction
of the entire issued and paidup
ordinary shares of Notore
Chemical Industries Plc on
the Main Board of the Nigerian
Stock Exchange (NSE).
The transaction added to
FBNQuest Merchant Bank’s
impressive portfolio of clients
it had supported. It also highlights
its capabilities in the successful
execution of sizeable
capital market and commercial
debt transactions. Kayode
Akinkugbe, Managing Director
of FBNQuest Merchant Bank
said: “We are proud of the
instrumental role FBNQuest
Merchant Bank played in this
transaction, and appreciate
the trust Notore placed in us
to assist them. Our clients
remain our priority, and we
strongly believe their success
is our success.
Lagos Digital Academy commits to
empowering business professionals
HOPE MOSES-ASHIKE
The Lagos Digital Academy
has launched a
wide range of intensive
and immersive digital
marketing courses that empowers
business professionals
to make their products and
services acceptable to potential
consumers.
Lagos Digital Academy is a
social enterprise that is strongly
committed to teaching and
inspiring a new generation of
digital professionals and entrepreneurs.
Dotun Babatunde, founder/
managing director, said digital
marketing was key to the success
of any organisation. He admitted
that the emergence of the
mobile phone in the Nigerian
market had changed the ways
and patterns of doing business.
“How best can you reach
your customers? No other platform
can give you that direct
personal access to consumers
like the mobile phone. We have
over 180 million Nigerians and
averagely, people hold two to
three network lines. In order to
reach your consumers today,
you have to be able to communicate
with them on one-on-one
basis,” Babatunde said.
At the Lagos Digital Academy,
participants are taught,
guided and certifies by experienced
practitioners from the
digital marketing industry.
Kunle Shittu, chief marketing
officer, said training in digital
marketing will lead to business
growth, boost economic growth
and enhance job creation.
“We will be organising a free
boot camp for Babcock University,
University of Lagos and University
of Ibadan. For us, we will
not be charging them any fee; it
is our own giving back initiative.
They will make the necessary
provision and we will take the
training to their doorsteps. We
will not rest until we have toured
every university and polytechnic
in Nigeria”, Shittu said.