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Fidelity Bank Stock Upgrade Excites Investors

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According to The Will newspaper, investors have commended the recent reclassification of Fidelity Bank Plc stock from small price stock to medium price stock.

Mrs. Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc


Mrs. Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc

Giving his perspective on the development, Mr Boniface Okezie, the National Co-ordinator, Progressive Shareholders Association of Nigeria, commented, “Fidelity Bank has paid its dues in the financial services sector.

“It has contributed immensely to the development of the small and medium enterprises (SME) sector yet pays dividends to the shareholders.

“Last year, it took the market by surprise by declaring a dividend of 50k per share which had not happened in previous years.

“The massive investment in ICT and effective branch network shows it is ready to serve the customers in a better way and make the shareholders happy”.

The NGX Limited, in a recent statement, said the reclassification became necessary because Fidelity Bank shares have been trading above the N5.00 mark since February 2023. Relying on rule 15.29 of the Rulebook of the Exchange, 2015 (Dealing Members’ Rules) NGX Limited noted that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock.

“Fidelity Bank traded above the N5.00 mark on February 20, 2023 and has remained above the N5 mark up until close of business on 30 June 2023.This indicates that Fidelity Bank has been trading above N5 for at least four months in the last six months. Therefore, it should be reclassified from small price stock to medium price stock,” the NGX pointed out.

The development was an acknowledgement of Fidelity Bank’s robust contribution to the bountiful harvest that bargain hunters have enjoyed in the 62-year-old stock exchange in recent times, buoyed the bank’s corporate strategic plan.

Applauding the Nneka Onyeali-Ikpe-led organization, Prince Anthony Omojola, National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN), asserted that, “Fidelity Bank is moving up in terms of performance.

“They have joined those paying interim dividends and they have also dipped their hand into big money tills for huge investment. They have borrowed big to be able to handle bigger contracts and be able to reap big.

“The reclassification is welcomed and I hope they will not disappoint us. If they are able to meet expectations, the benefit will be for Nigeria”.

On his part, Sam Ndata, Doyen of Nigerian Stockbrokers and non-executive director at UIDC Securities Limited commented, “This is a good development. If a company performs well, it will surely be rewarded to earn investors’ confidence. The NGX did very well by recognising and rewarding Fidelity Bank for the impressive performance of its stock”.

Fidelity Bank shares rose by 32 percent this year making it the nation’s best-performing bank share as of half year (June 30). On the back of this strong position, it plans to establish presence in at least five African countries after announcing the proposed acquisition of the London unit of rival Union Bank of Nigeria Plc. According to Onyeali-Ikpe, the bank is negotiating a second purchase which will be completed in the year.


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E-Financial

FCCPC Barks as Loan Apps Continue to Harass Customers

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Federal Competition and Consumer Protection Commission (FCCPC) has said steps are being taken to tackle loan Apps services providers that engage in harassing tactics against customers.

FCCPC Barks as Loan Apps Continue to Harass Customers

FCCPC also reiterated its commitment to ensure legal and ethical operations in digital lending

Adamu Abdullahi, acting chairman of FCCPC, emphasized that such practices would soon become a thing of the past, as the Commission has initiated measures to tackle the issue head-on.

Abdullahi stated, “It will soon become obsolete in Nigeria for online platforms, often referred to as loan sharks, to provide quick money to individuals for urgent needs.”

He expressed concern over the detrimental effects of these loan companies resorting to sending distressing messages, including personal pictures, to all contacts of borrowers who fail to repay on time.

This form of harassment, according to Abdullahi, has led to various challenges in Nigeria, including job loss due to embarrassment and disgrace inflicted upon borrowers.

Stating  the Commission’s stance on the matter, Abdullahi stressed, “We do not condone such practices, as they constitute harassment of customers, even though it may not be directly within our purview.”

He revealed that FCCPC has collaborated with major regulatory bodies such as Economic and Financial Crimes Commission (EFCC), National Information Technology Development Agency (NITDA), the Central Bank of Nigeria (CBN) and the Human Rights Commission to establish a committee aimed at addressing the issue comprehensively.

Abdullahi further disclosed that, upon discovering that these loan companies operate solely online without physical offices or identifiable managing directors, FCCPC took measures to request the removal of their applications from Google and Apple stores.

Additionally, cooperation with the CBN led to the blocking of their accounts.

 

 


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IMF Urges CBN to License Cryptocurrency Dealers

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International Monetary Fund (IMF) has explained why the Central Bank of Nigeria (CBN) should issue operating licences or register cryptocurrency dealers.

IMF Urges CBN to License Cryptocurrency Dealers

In its 2024 Staff Report released at the weekend, the IMF recommended that global crypto trading platforms be registered or licensed in Nigeria, like similar operators, the Bureaux De Change (BDCs), which are licensed by the CBN to carry out forex transactions at the retail end of the market.

The IMF advised that such crypto trading platforms should be subjected to the same regulatory requirements applicable to financial intermediaries, following the principle of same activity, same risk, and same regulation.

The CBN had announced that cryptocurrency traders used peer-to-peer trading to manipulate the naira exchange rate against the dollar and other global currencies.

The apex bank asserted in February that Binance, the largest cryptocurrency exchange by trading volume, had processed $26 billion in untraceable transactions in its Nigeria unit alone.

To protect the naira from value erosion and reverse the negative impact in the financial system, the CBN subsequently stopped banks and other financial institutions from banking cryptocurrency traders.

Aside several other factors causing naira’s slide, like rising import bills, medical tourism, and tuition fees payment abroad, exchange rate manipulation by cryptocurrency traders remains a major contributory factor.

IMF said: “Rapid growth of transactions on FX trading platforms poses new challenges. At the end of February, the authorities closed the operations of Binance and other crypto-asset trading platforms that were being used by Nigerians to facilitate capital flight – neither the identity of traders nor the origin of their funds could be traced.”

“The authorities also revoked the licences of 4,173 Bureaux De Change (BDCs) that failed to comply with CBN accounting and reporting requirements. Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subjected to the same regulatory requirements applicable to financial intermediaries following the principle of same activity, same risk, and same regulation.”


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NoOnes Super App Surpasses 200,000 Downloads

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NoOnes, the financial communication super app has announced it has broken past 200,000 downloads despite launching just over a year ago in April 2023.

NoOnes Super App Surpasses 200,000 Downloads

With the new figures representing a 300% surge in daily downloads since January 2024, the platform has also secured a 400% rise in user signups over the last three months, accelerating NoOnes’ global drive for financial empowerment by connecting people worldwide to conversations and payments.

In recent months, the platform’s meteoric rise has been primarily driven by strong growth in Kenya, Cameroon and South Africa, which have heavily benefited from NoOnes’ comprehensive suite of features.

Including over 250 payment methods, global chat functionalities for seamless cross-border communication and a secure BTC wallet, the app is rapidly emerging as the go-to platform to serve the needs of underbanked populations, spearheading  economic equality through Bitcoin adoption.

Speaking about the new milestone, Ray Youssef, CEO of NoOnes, said “This announcement isn’t just about the huge momentum we’ve rapidly built as a new player in the crypto space, it’s a testament to the massive appetite for financial empowerment in Africa and the wider Global South. Just a year ago, we launched NoOnes with a clear mission – to lead the charge on dismantling financial apartheid once and for all and our new figures not only recognise the immense dedication of our team to this goal over the last few months, but are also a serious indicator of things to come.”

Available on Google Play and iOS, NoOnes was launched to empower the financial freedom of the Global South through Bitcoin.

The platform enables users to move money freely and faster, without the friction and challenges associated with legacy banking and financial institutions.

Its business ideology hinges on the belief that peer-to-peer is the world’s only true free market and that Bitcoin is the new global financial architecture poised to uplift the people of Africa, Latin America and South East Asia.

NoOnes’ biggest markets to date are Nigeria, Ghana, Cameroon, India and the Philippines, accruing over 400,000 users worldwide to date,  and achieving profitability within just under 4 months of operations.

Despite its recent regulatory challenges, Africa’s cryptocurrency sector has continued its strong upward trajectory with Kenya, Cameroon, and South Africa emerging alongside Nigeria as the continent’s most prominent players.

According to Google Trends data, Kenya recently ranked among the top-15 crypto-curious countries globally and Cameroon currently boasts an active crypto user base of just under one million, accounting for nearly 7% of its active population.

With South Africa’s financial conduct regulator approving licences for crypto firms in April 2024, it is one of Africa’s most progressive countries for the industry, ranking amongst the highest countries in the world for crypto adoption globally.


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