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FCMB Commits to Power Sector Development

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FCMB Group has reaffirmed its commitment towards providing the necessary support to ensure the successful implementation of the ongoing reforms in Nigeria’s power sector. This, it stated, is in line with its contribution towards national development.

The Bank gave this assurance at a special forum titled, ‘’Financing the Power Sector Reforms for Economic Development’’, held in Abuja at the weekend , to showcase the N300 billion Bank of Industry-Power and Aviation Intervention Facility (BOI-PAIF) initiative which was launched in 2010.

According to Robert Grant, group head, Project and Structure Finance of FCMB Capital Markets Limited, FCMB has committed over $275 million to the Power Sector reform and the value chain opportunities. He added that FCMB Capital Markets is actively involved in the ongoing Niger Delta Power Holding Company’s (NDPHCs) privatization of its National Integrated Power Projects (NIPPs).

Also speaking at the event, Mohammed Namadi Sambo , vice president stated that reforming the Power Sector is integral to developing Nigeria’s economy. He acknowledged the support provided by the Nigerian banking industry to the Power Sector to date, and urged continuous support towards achieving 20,000 megawatts (MW) of electricity generation by the year 2016.

He pointed out that the Federal Government and other stakeholders like the Bureau of Public Enterprise were determined to ensure that the privatization of the Power Holding Company of Nigeria (PHCN) was concluded on schedule and that the Roadmap for Power Sector Reform Programme is on course and that that all hands must be on deck to realize the 20,000 MW objective.

FCMB was one of the first banks to access the BOI-PAIF with provision of a N3.2 billion Term Loan Facility to Tower Power Utilities Limited (TPUL) for their 17.75 MW combined cycle gas fired power generation plant in Otta Industrial Estate, Ogun State.

The feedstock is gas supplied by Shell through a pipeline which terminates in the Ota Industrial Estate. Apart from scheduled maintenance, the gas supply has been uninterrupted since inception.

The plant provides power to several enterprises including but not limited to Aluminum Rolling Mills, Kolorkote Nigeria Limited, Eagle Packaging & Printing, Green Fuels, Dychem, Covenant University and Euro Global & Food Distilleries.

The clear value proposition is the constant power supply that has significantly improved efficiency, competitiveness and profitability as almost all TPUL’s customers have effectively de-mobilized their existing diesel-fired assets.

In addition to the Discos, FCMB Group has financed gas pipelines, gas processing projects, and greenfield and brownfield IPPs. Apart from FCMB Limited (the group’s commercial banking arm) providing debt finance, FCMB Capital Markets has  provided advisory services including structuring, arranging, syndicating transactions as well as post-closing technical support in its role as Technical Bank.

Grant indicated that he was honored to be invited to the event, which validates the BOI-PAIF initiative and the Nigerian banking sector’s support for the industry and concluded that FCMB Group’s commitment to the Roadmap to Power Sector Reform is assured.

FCMB Group today, is viewed to have been positioned as the premier financial services group of African origin.

 At the centre of its businesses, lies a talented work-force that drives a comprehensive bouquet of financial services, and is focused on providing simple and reliable services to our customers. 


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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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