Business News
Diamond Bank quenches tales of new key investors
Diamond Bank Plc has denied media reports of a planned capital injection by new investors.
Tier two lender, Diamond Bank Plc has denied media reports of a planned capital injection by new investors. In a notice sent to the Nigerian Stock Exchange (NSE) today, the bank stated that such reports were an absolute falsehood.
“These reports are far from the truth. Diamond Bank is not in talks with any party, global or otherwise, for any capital injection.”
The bank also disclosed that it would shore up its capital internally.
“While previous communication from the bank has highlighted a need to shore up the Bank’s Capital Adequacy Ratio (CAR), the preferred option is an internal capital management programme that has been explained in detail to analysts and investors.”
Several media outlets had this week reported that the company was in talks with new investors to inject capital into the bank.
The report may have also gained credence following the resignation of the bank’s Chairman, Mr Oluseyi Bickersteth and three other directors – Rotimi Oyekanmi, Juliet Anammah, and Aisha Oyebode.
The reports had also stated that the bank’s Group Managing Director Uzoma Dozie would step down next year.
The bank had in the last one year sold non-core assets in a bid to shore up capital. In April this year, it sold its UK subsidiary to GFG Alliance.
Last year, it sold the holding company for its West African branches to Manzi Finances S.A. for 61 million Euros.
Diamond Bank is currently trading at N1.42 in today’s trading session on the NSE, down 6.04%. The stock had appreciated sharply when rumours of reported new investors broke out.
Results for the half year ended 30th of June 2018 show the bank recorded gross earnings of ₦98.5 billion for the period ended June 2018 compared to ₦97.9 billion reported for the period ended June 2017. This represents a 1% increase year on year.
The bank’s profit after tax for the half year ended 30th June 2018 was ₦1.80 billion, a 78% decrease compared to a profit of ₦8.02 billion recorded in H1 2017.
Economy & Politics
Fayemi set to activate digital economy with N5billion broadband infrastructure
Governor Fayemi plans to activate Ekiti state’s digital economy, this would help generate healthy competition within the ICT sector
Ekiti state government has concluded plans to create a digital hub, with the laying of a 606-kilometer broadband infrastructure.
The project is expected to lift the state from 16% internet penetration to 90% and is estimated to be worth N5 billion, with the Federal Government contributing N1.1 billion of the total sum.
Digital economy: Ekiti to lay 606km broadband infrastructure – https://t.co/Ot67wFn6yL pic.twitter.com/ligXcgeQDM
— Government of Ekiti State (@ekitistategov) May 24, 2020
This plan is part of the memorandum of Understanding (MoU) which the state Governor signed with O’odua Infraco Resources Limited, a consortium that develops high speed and efficient Fibre Optic Cable (FOC) Open Access Network (OAN) across the South-West region of Nigeria.
According to the Managing Director of O’odua Infraco Resources Limited, Mr Sammy Adigun, the project will be officially flagged off in October and completed within 14 months.
(READ MORE: What Nigeria stands to gain from new National Broadband Plan)
This decision is a follow-up to the recent crash of Right of Way charges from N4,500 to N145 per meter for broadband infrastructure, and in line with one of the five pillars of Governor Kayode Fayemi’s development plan for Ekiti state.
The Governor noted that these decisions would help generate healthy competition within the ICT sector, thus activating Ekiti state’s digital economy and digital education.
Fayemi noted that the project execution, as well as the broadband policy in the state would be coordinated and supervised by a Digital Infrastructural Committee, made up of various relevant government institutions critical to the implementation of the project.
“For us the roadmap is first the fibre connectivity itself, the second is the adequate data center infrastructure, the third is the e-learning programme which will cover our educational institutions, then our safe city, our security programme will also be included.
“With our geographical land information system (GIS), we would digitalize all our land records, and of course, commercial investment as well as digitalisation of our government assets and our health education initiative,” Fayemi explained.
Economy & Politics
NCC reacts to claims that minister chased Diaspora Commission’s staff from office complex
The NCC denies claims of the video on social media, pointing out that the staffs of NIDCOM were not sent packing from the digital economy complex
The Nigerian Communications Commission (NCC) has reacted to claims by the Chief Executive of Nigeria Diaspora Commission (NIDCOM), Abike Dabiri-Erewa, that her staff members were chased out of its premises by armed men on the orders of the Minister for Communication and Digital Economy, Isa Pantami.
The NCC, through a press statement on May 24, 2020 signed by its Director, Public Affairs, Dr. Henry Nkemadu, has said that nothing of such happened as it denied claims in a video making rounds on social media that the staff of NIDCOM were sent packing from the digital economy complex.
According to the press statement from NCC:
“Following the completion of the NCC building at Mbora, Abuja designated as NCC Annex and the acute shortage of accommodation space for the staff of the commission in the NCC head office at Maitama, Abuja, the Board of the commission directed the decongestion of the Head office building. Some of the departments of the NCC had started moving to the new office complex of 5 floors when discussions were held between the NCC and the Diaspora Commission to enable the Diaspora Commission also utilize any free offices within the complex.
“The fifth floor allocated to them had to be used to accommodate other departments from the NCC headquarters to ease the congestion. NCC’s offer to house the Nigeria Diaspora Commission was predicated on the long held position of the NCC that agencies of government will achieve more through strategic collaboration, partnership, synergy and sharing to the extent allowed by relevant laws.”
(READ MORE: PenCom dissolves interim management committee for First Guarantee Pension, appoints new board)
NCC disclosed that it had secured approval for the commissioning of the office complex by President Buhari, and also the launching of 4 important projects of NCC, together with the renamed Ministry of Federal Ministry of Communication and Digital Economy.
It also stated that the offer to NIDCOM had not been withdrawn, but had only hit a bump arising from the preparation for the visit of President Buhari to launch the projects and inaugurate the complex. It said that the Board and Management of NCC took a decision to ensure that every activity in the building was in line with the Federal Government’s agenda.
Going further, the statement reads:
“Incidentally, after the offer of the office spaces to the Diaspora Commission, the Director General, Mrs. Abike Dabiri-Erewa had not visited the complex to take possession of any of the offices and also the commission had not started using any of these spaces as offices.
‘’As is usual in ensuring security and accountability before, during and after presidential visits, the building had to be cleared to allow for only known and identifiable persons to have access within the complex. Therefore, the Honourable Minister of the Federal Ministry of Communications and Digital Economy Dr. Isa Ali Ibrahim Pantami could not have sent armed men to drive the staff of the Diaspora Commission out of the Communication Economy Complex.”
As with every path to success challenges are bond to surface what have been the major challenges since the establishment of the Nigerians in Diaspora Commission – Hon. Abike Dabiri-Erewa, Chairman/CEO of Nigerians in Diaspora Commission. pic.twitter.com/x2yp5CDGs0
— CBN Gov Akinsola Ak🇳🇬 (@cbngov_akin1) May 23, 2020
The statement also pointed out that as at that time, only NCC staff were accredited to have access within the premises and that all properties belonging to NIDCOM were safely warehoused in some of the offices within the complex.
Coronavirus
Sanwo-Olu gives incentives to businesses to prevent job loss
Babajide Sanwo-Olu noted that the state is Nigeria’s number one commercial centre and a massive job loss will not bode well for it’s economy
Lagos state governor, Babajide Sanwo-Olu, has promised that any business that employs a large number of people will receive incentives from the state government in order to prevent massive job loss in the state.
He noted that Lagos state is Nigeria’s number one commercial center and heavy job losses will not bode well for the economy of the state, and the country.
As the commercial centre of the country, we are offering incentives to businesses that employ large number of people to avoid job loss.
In our plan to re-open the economy, businesses will follow our Register-to-Open guidelines with protocols that workplaces must put in place. pic.twitter.com/zJgEWLMksK
— Babajide Sanwo-Olu (@jidesanwoolu) May 22, 2020
“We are having conversations with different sectors on the requirements they need to ensure they do not retrench their staff. What many of the companies want will affect the State’s IGR but we are willing to make the sacrifice to prevent the loss of livelihood of our citizens,” the governor stated.
The phased reopening of the economy
The governor explained in his tweet that all businesses were still required to follow the Register-to-open initiative, and put all facilities in place before they would be allowed to reopen.
(READ MORE: COVID-19: Best and worst case scenarios for the Nigerian economy)
According to him, the state will consider companies in the construction and manufacturing sector as top priority in the first stage of the reopening, while businesses in the entertainment and hospitality sector will be considered for reopening in the second phase, as the state tries to balance economic reactivation with COVID-19 management.
The re-opening will not be hastily done. The various sectors will be reset in a gradual manner. The construction and manufacturing sector will be accorded high priority while the entertainment and hospitality sectors will be considered in the second phase.
— Babajide Sanwo-Olu (@jidesanwoolu) May 22, 2020
“We are caught between managing hunger & sustaining an economy that is not only dependent on commercial activities in Lagos alone but also in other states.
“We are at the stage where we have to balance public health safety & the economy that affects the wellbeing of the people” Sanwo-Olu stated.
He urged Lagosians to support the government in breaking the cycle of transmission, by adhering to the guidelines from the authorities.
Fayemi set to activate digital economy with N5billion broadband infrastructure
NCC reacts to claims that minister chased Diaspora Commission’s staff from office complex
Fines: NSE makes over N154 million from banks, others
