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Business News

NPF Microfinance Bank to embark on public offering on NSE

The Managing Director/Chief Executive Offer of NPF Microfinance Bank Plc (@npfmfb), Akinwunmi Lawal, has announced its intention to raise funds from the Nigerian Stock Exchange (NSE) through a public offer.

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NPF Microfinance Bank public offer, NPF Microfinance Bank shares, NPF Microfinance Bank revenue, NPF Microfinance Bank financial statement, NPF Microfinance Bank loses N230 million to rogue staff

The Managing Director of NPF Microfinance Bank Plc, Akinwunmi Lawal, has announced the intention of the bank to raise funds from the Nigerian Stock Exchange (NSE) through a public offer.

The company is betting on its impressive dividend payout record to lure investors to subscribe to its shares, thereby, increasing its working capital. The bank will commence a three-year strategy from 2019 to 2021. Other reasons for selling its shares include incorporation of information technology to meet customers needs and branch improvement, among others.

[READ ALSO: Access Bank is not joking with Diamond Bank’s debtors]

The plan and purpose of the fundraising were disclosed at the 25th Annual General Meeting (AGM) of the bank held in Akwa Ibom, for the financial year ended December 31, 2018.

The bank is targeting its existing shareholders as well as prospective shareholders with the fundraising. According to a report, the success of the public offer is tied to the successful payout of dividend for the last 20 years.

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Nigerians using NPF Microfinance Bank ATM

The fundraising would, however, not proceed until NPF Microfinance Bank secures regulatory approval. This public offering is coming just as the lender concluded a three-year strategic plan that spawned from 2016 to 2018. Its new plan is set to reposition the bank in the provision of microfinance services.

While speaking about the performance of the bank, Lawal highlighted the growth difference in the company’s assets and loans.

Deal book 300 x 250

“The deposit liability moved from N9.126 billion to N10.465 billion showing a growth of 14.67% which indicated the continued growth of our customer’s trust and confidence in our mission. Our borrowing from various intervention funds increased by 34.08% to N2.078 billion from N1.550 billion and this is accountable for the increase in interest expenses by 34.7%.”

[READ ALSO: Billionaire Watch: Dangote fulfills $50,000 pledge to Super Eagles for AFCON heroic]

What you need to know: In maintaining NPF Microfinance Bank’s dividend payment culture, Lawal said the payment of N114.3 million was recommended as dividends. This means it will be offered at a rate of 5 kobo per share. He added that various reserves would receive payment of N81.4 million for future developmental projects.

Note: NPF Microfinance Bank’s total asset increased by 10.31% from N15.952 billion recorded in the previous year to N17.597 billion in 2018.

The loans and advances hit N10.593 billion in 2018 from N9.008 billion in 2017. This represented a 17.59% growth.

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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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Macro-Economic News

Transport fare watch: Motorcycle “Okada” commuters paid less in January 2021

Commuters on motorcycle per drop (Okada) paid less in January 2021 than they did in December 2020.

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Transport fare for motorcycle "Okada" more than doubled in 2020, Lagos State bans Gokada, ORide, MaxNG, others from 15 local governments 

The average fare paid by commuters for journey by motorcycle per drop decreased by 11.60% month-on-month and increased by 95.22% year-on-year to N259.33 in January 2021 from N293.36 in December 2020, according to the National Bureau of Statistics (NBS) report for the month of January 2021.

According to the report, commuters in  Taraba (N400.80), Yobe (N400.15) and Rivers (N400.00) paid the highest journey fare by motorcycle per drop while commuters in Adamawa (N84.22), Katsina (N134.90) and Kebbi (N152.05) paid the lowest journey fare by motorcycle per drop.

Other key highlights

  • The average fare paid by commuters for bus journey intercity decreased by 0.25% month-on-month and increased by 39.55% year-on-year to N2,346.41 in January 2021 from N2,352.19 in December 2020.
  • Commuters in Abuja FCT (N4,482.24), Lagos (N3,300.23) and Sokoto (N3,300.00) paid the highest bus journey fare intercity while commuters in Bayelsa (N1,600.45), Bauchi (N1,640.20) and Enugu (N1,687.45) paid the lowest bus journey fare within city.
  • The average fare paid by commuters for bus journey within the city decreased by 0.66% month-on-month and increased by 74.75% year-on-year to N352.15 in January 2021 from N354.49 in December 2020.
  • Commuters in Zamfara (N600.00), Bauchi (N522.75) and Ekiti (N458.77) paid the highest bus journey fare within city while commuters in Oyo (N189.46), Abia (N205.22) and Borno (N240.79) paid the lowest bus journey fare within city.
  • The average fare paid by air passengers for specified routes single journey increased by 0.02% month-on-month and by 18.27% year-on-year to N36,463.65 in January 2021 from N36,454.59 in December 2020.
  • Passengers in Anambra (N38,600.00), Cross River/Jigawa/Lagos (N38,500.00), Bauchi (N38,400.00) paid the highest airfare while States with lowest airfare were Akwa Ibom (N32,450.00), Sokoto (N33,700.00), and Gombe (N35,000.00).
  • The average fare paid by passengers for water way passenger transport increased by 3.68% month-on-month and by 38.58% year-on-year to N786.19 in January 2021 from N758.27 in December 2020.
  • Passengers in Rivers (N2,280.00), Delta (N2,250.45) and Bayelsa (N2,200.10) paid the highest fare by water while states with lowest fare by waterway passenger transport were Borno (N245.10), Gombe (N290.77) and Kebbi (N340.00).

Why this matters

Transportation cost takes a huge portion of budget for most lower/middle-class Nigerians and as well takes not less than 20% of their take-home pay packages.

The drop in fares paid by the commuters on motorcycle per drop (Okada) is a welcome development.

Transport by motorcycle (Okada) has been popularly adopted in most cities by businessmen, government workers, and students to overcome traffic congestion, and for the advantage that it can navigate roads that are inaccessible to automobiles and buses, particularly in villages and urban slums.

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Companies

Arvind Pathak, Deputy GMD of Dangote Cement resigns

The Deputy Group Managing Director of Dangote Cement has resigned his role on the Board of the company.

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Arvind Pathak, Deputy GMD of Dangote Cement resigns

Dangote Cement Plc has announced the resignation of its Deputy Group Managing Director, Arvind Pathak.

In line with the disclosure issued by the company, the Board of Directors of Dangote Cement after accepting Pathak’s request disclosed that his resignation will take effect from the 25th of February 2021.

The Board of Dangote Cement appreciates him for his commitment and contributions to the Board, and also wishes him well in his future endeavours.

What you should know

  • Pathak was appointed to the Board of Dangote Cement Plc on October 29, 2019, as Deputy Group Managing Director.
  • Prior to his appointment as Deputy GMD, he was the Chief Operating Officer of Dangote Cement, a position he held between 2018 and 2019.
  • Prior to joining DCP, he has worked in various leadership roles in the cement industry, he has 30 years of experience in the cement industry.

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