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Access Bank Buys Mozambique’s African Banking Corporation in Latest Frenzy

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Access Bank Plc has acquired Mozambique’s African Banking Corporation, as part of its aggressive expansion drive in African continent.

Access Bank Buys Mozambique’s African Banking Corporation in Latest Frenzy

There is no mention of the value of the transaction yet.

Its subsidiary in Mozambique consummated a deal for the acquisition of African Banking Corporation, backed by London-listed financial services group  Atlas Mara Limited, according to the lender’s note to the Nigerian Exchange Limited on Tuesday.

Herbert Wigwe-led Access Bank wants its business outside Nigeria to provide 30 per cent of the group’s profit this year and gaining in the southern end of the continent seems crucial to that goal, with two other acquisitions in Zambia and South Africa so far delivered between the start of the year and now, and another one to be completed in  Botswana by June.

Premiumtimesng.com reported that an already cluttered market in its base, Nigeria, is pushing the country’s biggest bank by asset to seek growth in the rest of Africa at a time when the coronavirus crisis has grievously deteriorated credit quality and lenders still battle the headwinds of last year’s record crash in the prices of oil on earnings. Oil and gas contributes the bulk of the credit base of Nigerian banks.

With the Mozambican takeover, the bank’s combined assets from a proposed merger between Access Bank Mozambique S.A and the new acquisition will make it the seventh largest bank in the country, the document seen by PREMIUM TIMES shows.

Shares in Access Bank traded flat in Lagos on Tuesday, recording no price movement.

“We are building the scale necessary to compete effectively and efficiently in key African markets outside Nigeria and ensure we sustainably deliver strong return on invested capital in our African expansion,” Mr Wigwe said.

“Scale is an important contributor to returns and this transaction is consistent with our rigorous efforts to create to create a strong presence with scale across Africa…”

The bank  announced plans to shut down branches last May, estmated to be  more than 300 across Nigeria, a year after it acquired the defunct Diamond Bank.

A month ago, Atlas Mara agreed to sell 78 per cent of its stake in Botswana-based African Banking Corporation to Access Bank as the group, headquartered in British Virgin Islands, proposes to offload its investments on the continent and exit Africa.

It holds the majority stake in Union Bank translating to nearly half of the bank’s equity, which Access Bank and Zenith Bank are yearning to buy, according to a Bloomberg report, citing sources close to the heart of the matter. Union Bank has said the news is “unsubstantiated” and “based on mere rumours and speculations.”

With steady growth in financial performance, rapid expansion and drive, Access Bank Plc is moving to dominate and deliver better value to all stakeholders

 

 

 

 

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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