E-Financial
AfDB to Establish Resource Centre in Abuja
African Development Bank (AfDB) said it will establish a Public Private Partnership Resource Centre in Abuja to support governments’ efforts to reduce infrastructure gap in the country.
Emmanuel Akinwunmi, ADB Private Sector Specialist, made the disclosure at the 4th National PPP stakeholders Forum in Abuja on Thursday.
Akinwunmi said, “The bank is making effort to support the country in the drive toward improving infrastructure delivery and a more robust and efficient PPPs.
“In the light of this, recently we shared ideas with our colleague in South Africa on how the bank could set up a PPP advisory hub.
“We found out in Nigeria that there are initiatives made at various levels of government which is very commendable.
“At the same time to compliment the effort of the federal and state government, we are planning to establish a PPP advisory hub in the country’s office in Abuja.
“This is going to be a resource centre where the Federal Government, ministries, states and even local government can interact with us and share resources that we have.”
According to him, the forum will be another avenue to help the bank facilitate the speedy establishment of the centre.
He said that the ADB was planning to hold a foundation training workshop in October, adding that the bank had been involved in the efforts to support PPP projects in the country.
Akinwunmi said that PPP was a sure way to engage the private sector finances into developmental projects in the country.
According to him, this will bring about cost effectiveness in execution of projects, speedy service delivery and maintenance in the system.
“Nigeria and the African continent are still confronted with huge infrastructure deficit.
“According to Nigeria Integrated Infrastructure Master plan, Nigeria needs $2.9tr over the next 30 years to close the infrastructure gap.
“This figure is scary but we will go from one step to the other and bring it down,” he said.
He commended the Infrastructure Regulatory Concession Commission, the organisers of the forum, and urged participants to make contributions that would be of benefit to both the government and the private sector.
Mr Faruok Gumel, West Africa Territory Advisory Leader, Price Waterhouse Copper, multinational company, said Africa’s infrastructure deficit was estimated at $38bn per year.
“Nigeria, despite being the largest economy in Africa with GDP of $509.9bn in 2013 is also experiencing huge challenges in the area of infrastructure.
“Estimate of about $630bn as infrastructure investment requirement for Nigeria for 2011 to 2020.
“According to the National Planning Commission’s infrastructure master plan, Nigeria would require $26bn yearly to deliver pipeline of priority projects in the first five years of the master plan,” Gumel said.
Gumel said it was expected that the infrastructure spending in Nigeria would grow from $23bn to $77 bn in 2025.
He said this was the projection of 2014 study conducted by PWC and Oxford Economics study.
“To bridge the prevalent infrastructure gap in the power sector alone, it is estimated that we require an annual infrastructure investment of $10bn each year over the next 10 years,” he said
Gumel said government alone could not fund infrastructure because of the huge amount involved in the process, saying that the need for private sector participation could not be over emphasized.
Federal High Court in Lagos has fixed July 1, 2025, for the commencement of trial in a money laundering case involving Cititrust Holdings PLC and three of its subsidiaries.
The subsidiaries are Cititrust Funding PLC, Cititrust Credit Limited and Cititrust Financial Services Limited,
The companies are facing an eight-count charge filed by a team of prosecutors from the Economic and Financial Crimes Commission (EFCC), comprising Anasoh Henry Onyekachi, Frankklin Ofoma, Abdulhamid Lamido Tukur, and A.A. Usman.
According to the charge, between 2021 and 2023, the companies, all incorporated in Nigeria, allegedly operated investment management services without a valid licence from the Central Bank of Nigeria (CBN).
This act contravenes Section 57 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and is punishable under Section 57(5) of the same legislation.
The prosecution also alleged that the companies conducted a Collective Investment Scheme without registering with the Securities and Exchange Commission (SEC), another violation of regulatory requirements.
In one of the counts, Cititrust Credit Limited is specifically accused of failing to report high-value financial transactions to the Nigerian Financial Intelligence Unit (NFIU).
These transactions include a N20 million transfer on January 7, 2021; a N200 million transfer on April 4, 2021; and a N200 million lodgement on January 29, 2021.
Additionally, both Cititrust Credit Limited and Cititrust Financial Services Limited are alleged to have made a single transfer and lodgement respectively of N42 million into their bank accounts on January 29, 2021, without proper disclosure to relevant authorities.
The alleged offences are in breach of Sections 11(1)(b) and 11(3) of the Money Laundering (Prohibition) Act 2022, as well as Section 54(1) of the Investment and Securities Act 2007, and are punishable under the respective laws.
The court is expected to begin full proceedings on July 1.
Ecobank Nigeria’s long-term issuer credit rating has been downgraded to ‘CCC-’ from CCC, with the outlook placed at negative by S&P Global Ratings. This is a resultant effect of the $150 million bond buyback offer on the bank’s $300 million Senior Unsecured Eurobond.
Part of the tender offer made by Ecobank includes an early tender premium of $12.50 for every $1,000 in principal (equivalent to 1.25%), with the anticipated settlement date set for July 8, 2025. The offer also requests bondholders’ consent to eliminate the capital adequacy covenant on the outstanding notes.
These actions also led S&P to downgrade the $300 million Eurobond from ‘CCC’ to ‘CCC-’. Although S&P notes that it does not consider the tender offer a distressed debt restructuring.
However, this assessment is at risk of changing if the bank does not receive the promised capital injection from the parent group, Ecobank Transnational Incorporated (ETI).
Following the naira devaluation, Ecobank was unable to meet the regulatory Capital Adequacy Ratio (CAR) requirement, as its CAR dropped to 7 per cent. This was below the 10 percent regulatory minimum. The breach of the CAR caused the bank to seek the consent of its bondholders to pause the capital adequacy notes on the Eurobond notes till September 2025.
Following this development, the bank received a $50 million prepayment on promissory notes from its parent company, ETI, along with early repayments on certain foreign currency loans. However, it has been insufficient in restoring the capital adequacy to regulatory levels.
According to S&P, the bank is expected to receive another $50 million capital injection from its parent group before August 2025. However, the ratings agency notes that if the bank is unable to receive this capital injection, it will inevitably default on its bonds. A situation that would cause a further downgrade to ‘CC’.
It was recommended that Ecobank Nigeria consider raising $150 million through additional Tier-1 instruments to strengthen its liquidity buffers. Additionally, the bank was advised to intensify efforts to recover its foreign currency-denominated loans.
Fidelity Bank Plc, leading financial institution has reaffirmed its commitment to corporate social responsibility with the donation of food and essential items to the Old People’s Home in Yaba, Lagos.
The donation was made possible through the generosity of the bank’s Nexus Inductees Class, under its Corporate Social Responsibility initiative known as the Fidelity Helping Hands Programme (FHHP).
Through the FHHP, staff across Fidelity Bank branches nationwide identify crucial interventions needed in their immediate community and raise funds to execute them. The bank’s management then matches this contribution with an equal amount and disburses it for the selected project.
Commenting on the donation, Divisional Head, Brand and Communications, Fidelity Bank Plc, Dr Meksley Nwagboh, emphasized the bank’s unwavering commitment to impacting its host communities positively noting that the community is an essential part of the bank success story.
“Today’s donation is a token of our appreciation for our incredible parents and guardians who have raised outstanding individuals that trust us with their banking needs.
“Our donation to the Old People’s Home reflects our deep commitment to supporting the well-being and dignity of our senior citizens.
“We are honored to contribute to a cause that ensures they receive the care, comfort, and respect they deserve.” Nwagboh stated.
Appreciating the gesture from the bank, the Director-in-Charge of the Home in Yaba, Adetutu Ipaye, said “Community support initiatives such as this from Fidelity Bank is vital to sustaining our mission and enhancing the quality of life for the elderly.
“We urge other organizations to follow in the Bank’s footsteps as this kind of support will go a long way to ensure that the elderly live with dignity and comfort”.
One of the beneficiaries from the home, Mr. Kamoru Adeyetu noted that, “Your presence today has brought us immense joy, and our greatest happiness lies in seeing the younger generation thrive. Beyond the gifts, your visit means the world to us and please remember to visit us regularly.”
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
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