Business News
AMAC obtains microfinance licence from CBN
The Abuja Municipal Area Council (AMAC) has been granted a microfinance banking licence by the Central Bank of Nigeria (CBN).
Following the Central Bank of Nigeria (CBN)’s approval of a microfinance operating licence for the Abuja Municipal Area Council (AMAC), small-scale business owners can now be exposed to loans without collateral and with little or no interest to boost their businesses.
The microfinance bank would also support economic empowerment among the low income earning AMAC residents, among other benefits.
More so, as the bulk of Federal institutions, Ministries, Departments, and Agencies are located within the precinct of the Area Council.
How it all began
The bank’s Chairman of Board of Directors, Emmanuel Ohakim, recalled that the idea of the microfinance bank was mooted on June 12, 2017, when AMAC Chairman, Abdullahi Adamu Candido, inaugurated an eight-man implementation committee to source for private investors to liaise with CBN and establish the bank.
Ohakim described the microfinance bank as a dream come true and at a time the United Nations Sustainable Development Goals (SDGs) had taken a firm resolve to fight hunger and poverty in the land.
The institution comprises seasoned professionals drawn from both the public and private sectors. Nzegwu Michael is designated the CEO of the board that comprises Henry Opara, Steve Nwadiuko, Musa Dauda, Candido and Dr Helen Jekele.
About AMAC
The Abuja Municipal Area Council was created on October, 1984. It is located on the eastern wing of the Federal Capital Territory and comprise of Twelve Wards namely, City Centre, Garki, GUI, Gwagwa, Gwarimpa, Jiwa, Karshi, Kabusa, Karo, Nyanya, Orozo and Wuse.
Each of these wards are represented by an Elected Councillor. The Councillors form the Legislative Arm of the Area Council. The Executive Arm comprises of an elected Chairman and a vice together with an appointed secretary and other supervisory councilors and special advisers.
Financial Services
Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19
Note that some companies have had to revise their earnings estimates due to pandemic.
Guinea Insurance Plc is being very optimistic, having projected a 78.6% rise in gross premium written to N1.8 in Q3 2020, up from N1 billion during the comparable period in 2019. The insurer also forecasted a profit after tax of N185.8 million for the period, indicating an expected better performance compared to N735 million loss recorded in Q3 2019.
The earnings forecast, which was sent to the Nigerian Stock Exchange earlier today, also estimated that reinsurance expense for Q3 will be at N337.5 million. Claims expenses, underwriting expenses, and other operating experiences were equally put at N331.3 million, N292.6 million, and N692.2 million, respectively.
Note that this forecast is coming amid the negative economic impacts wrought by the Coronavirus pandemic. But while a growing list of companies (including Guinness Nigeria Plc) has downgraded their 2020 earnings and profitability forecasts, Guinea Insurance is expecting growth and that is good.
In Q1 2020, Guinea Insurance Plc reported gross premium written OF N207 million and a profit after tax of N12.6 million. The company’s consolidated half-year 2020 financial has not been released and is expected sometime between this month and next month.
The company’s share price ended today’s trading on the Nigerian Stock Exchange at N0.20. Year to date, this stock has not recorded any price movement.
Economy & Politics
CBN unification of exchange rate a welcome development – MAN
Ahmed urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates.
The President of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, announced on Friday that the recent CBN unification of Nigeria’s exchange rate is a welcome development that will boost investor confidence in Nigeria.
He said the exchange rate unification will enable stable planned production for manufacturers in Nigeria leading to economic growth, adding that the Manufacturers Association had urged for an exchange rate unification to enable a market-friendly business environment in Nigeria.
“Clearly, this is a welcome development and a laudable initiative that has come at the right time.”
“This is more so, particularly, now that the economic outlook is gloomy in light of the impact of the ravaging COVID-19 pandemic that has culminated in uninspiring macroeconomic situations,” he said.
He revealed that the World Bank had attributed Nigeria’s falling Foreign Direct Investment (FDI) to the multiple exchange rates as investors felt a “manipulation of the foreign exchange market.”
“The unification will also boost investors’ confidence, control rising inflation, and promote transparency, entrench better exchange rate management and eradicate distortions to the barest minimum,” he added.
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He urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates like “round-tripping” which he says expand the inflows of foreign investment into the economy.
He called on the Central Bank to implement 2 strategies to ensure a smooth transition into a unified exchange rate system.
“The first is to limit the short-term pains until efficiency gains materialize by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialize,” he said.
He advised, it’s necessary the CBN “submit all the instruments of exchange rate determination” towards a free-market approach.
Appointments
Seplat appoints Emeka Onwuka as CFO
Onwuka has over 30 years’ experience in financial services across Sub-Saharan Africa.
Seplat Petroleum Development Company Plc. has appointed Mr. Emeka Onwuka as Chief Financial Officer and Executive Director, Lagos, and London.
The appointment takes effect from August 1, 2020.
The appointment was announced in a notice sent to the Nigeria Stock Exchange on Friday and has been ratified by the company’s board of directors.
According to the notice which was signed by the company secretary and chief governance compliance officer, Mrs. Edith Onwuchekwa, the Board of Seplat is confident that “the wealth of knowledge and experience Onwuka brings will be a great addition to the Company”.
Mr. Onwuka has over 30 years’ experience in financial services across Sub-Saharan Africa. Mr Onwuka is a Partner at Andersen Tax Nigeria and holds various Board positions as Chairman; FMDQ Securities Exchange Limited; Director FMDQ Holdings Limited; Director, Ecobank Nigeria Limited; and Director, Bharti Airtel Nigeria.
He was also the former Group Managing Director /CEO of Diamond Bank Plc and former Chairman of Enterprise Bank Limited.
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He is a Chartered Accountant, a Fellow of the Institute of Chartered Accountants of Nigeria, and a Fellow of Chartered Institute of Taxation of Nigeria.
Mr. Onwuka received his B.SC. in Political Science from the University of Nigeria, Nsukka, and holds an MBA from the University of Benin.
He is an alumnus of the Lagos Business School, Wharton Business School and Harvard Business School.
Onwuka also holds the Nigerian National Honor, Officer of the Order of the Niger (OON).
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