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Business News

Wema Bank doesn’t need a merger to reach N1trillion capital base – CEO

The Group Managing Director of @wemabank, Ademola Adebise, has disclosed that the lender doesn’t need Merger or Acquisition to achieve its long term target of the N1 trillion capital base.

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Wema Bank CEO Ademola Adebise, Access Bank and Diamond Bank merger, Wema Bank financial statement
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The Group Managing Director/Chief Executive Officer of Wema Bank Plc, Ademola Adebise, has disclosed that the lender does not need a merger or acquisition to achieve its long term target of the N1 trillion capital base.

How Wema Bank Plc will achieve its plan: Adebise said Wema Bank‘s expansion drive and innovations are aimed at ensuring that company attains a N1 trillion capital base target it has set out for itself. According to him, the company’s growth plan is organic, ruling out any consolidation plan in the short term.

His comment comes in the wake of the merger between Access Bank Plc and Diamond Bank Plc consolidation which took effect in March. Nairametrics had earlier reported that the two lenders were merging to form the biggest bank in Nigeria and Sub-Saharan Africa.

Note that Wema Bank‘s expansion drive will focus on the downstream oil and gas sector, the agriculture value chain, and the small and medium enterprises (SMEs) space.

“There are two ways to grow – you grow organically or you grow inorganically. What we are saying is that in the next two years, we want to double our indices through organic growth. Afterwards, if there are opportunities for M&A we will consider it.

“M&As are created by opportunities, it’s not that you will go and submit yourself to M&A. today, we are in the neighbourhood of N400 billion in assets, so we will be shooting for about N800 billion by the time we double that. We want to get into the trillion naira mark in terms of asset base, and not that we will get there through M&A.

“Last year, saw the bank declaring dividend for the first time in 15 years. The last time was in the era of Mr Tunde Lemo, also a former CBN Deputy Governor. We see this as a demonstration of all the efforts of management over the last nine years, which culminated in the payment of dividend.

“From here, we intend to be a strong retail bank, leveraging technology and innovation. Also, the next two years, we will try to double our key indices including assets, deposits, profits etc, and to play big in the retail segment. At the end of the day by 2020, we would have doubled our numbers. By this, we would then embark on opportunities in M&A for inorganic growth.

“We have key sectors of the economy that we have mapped out to achieve this growth. Also, we are trying to ensure that we have well-trained and well-motivated staff that will also be well-remunerated.”

Technology’s threat to workforce: Adebise also doused worries that technology will erode the growth of workforce if fully incorporated in all the operations of financial institutions. According to him, Wema Bank Plc has a plan that will prevent the loss of jobs to technology.

About Wema Bank Plc

Wema Bank Plc offers a range of retail, SME banking, corporate banking, treasury, trade services, and financial advisory to its customers. The bank operates with a National Banking Licence and has a network of over 136 branches and service centres across the country.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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    Business

    Hyundai and Kia to set up an assembly plants in Ghana by 2022

    The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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    Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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    Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

    Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

    READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

    Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

    The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

    READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

    Why this matters

    More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

    Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

    SSKOHN

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    Business

    Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

    The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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    The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

    This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

    What the Minister said

    “On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

    “But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

    READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

    The new passport process

    The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

    “When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

    What you should know 

    • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
    • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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