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Business News

UPDATE: FCMB appoints Deloitte as new auditors following expiration of KPMG’s tenure

The board of directors of FCMB Group Plc unanimously voted to replace Messrs KPMG Professional Services with Messrs Deloitte and Touche as its new auditor.

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FCMB contact centre

The board of directors of FCMB Group Plc has unanimously voted to replace Messrs KPMG Professional Services with Messrs Deloitte & Touche as its new auditors.

What we know: This is part of the decisions that were reached when the company’s board of directors met in Lagos last week, to deliberate on a number of important company issues.

Nigerian economy is on a slippery slope of recovery, KPMG discloses  

In a public disclosure that was sent to the Nigerian Stock Exchange earlier today, FCMB Group Plc informed the general public that the decision is still subject to the approval by its stakeholders. The approval is expected to be given during the company’s next Annual General Meeting.

Reason for the move: According to an explanatory note that was later sent by FCMB Group, as seen by Nairametrics, KPMG’s ten-year tenure expired, hence the replacement. Part of the statement said:

“By virtue of the provision of section 5.2.12 of the CBN Code of Corporate Governance for Banks and Discount Houses, the tenure of the auditors in a given bank shall be for a maximum period of ten (10) cumulative years, after which the audit firm shall not be reappointed in the bank until after a period of another ten (10) consecutive years.

“Following the expiration of the 10-year tenure of Messrs KPMG Professional Services with First City Monument Bank Limited (the bank), the Board of the bank approved the appointment of Messrs Deloitte & Touche as its external auditors.

“With the bank being the largest subsidiary in the FCMB Group, to ensure timely conclusion of the Group’s audit, the Board of Directors of FCMB Group Plc has always adopted the strategy of appointing the same Audit firm to audit both the bank and the Group. This is to enhance easy coordination of the Group’s audit process and support quick review of the consolidated financial statements to meet regulatory guidelines on audit.”

[READ MORE: Ewelukwa replaces Amobi as NBET boss]

Other decisions by FCMB board: The statement by FCMB Group went further to disclose that the board of directors deliberated on and approved the company’s audited financial statement for the period ended December 2019.

After obtaining approval from the Central Bank of Nigeria, details of the financial statement, the dividend payout to shareholders, and other related corporate actions will be announced to the general public through a notice to the Nigerian Stock Exchange.

FCMB replaces KPMG with Deloitte as its new auditor

Meanwhile, the company also considered and approved the appointment of a new Non-Executive Director. The name of the new Non-Executive Director is yet to be disclosed because the appointment is still subject to approval.

Based on its unaudited financial statement for the 2019 financial period as seen by Nairametrics, the bank is expected to report an increase in profit after tax.

FCMB Group’s stock opened Monday’s trading session on the Nigerian Stock Exchange with a share price of N1.80. It is currently trading at N1.67 according to Bloomberg.

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NB: This article has been updated with additional explanation from FCMB Group, which provides the legal reason behind KPMG’s replacement.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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    Real Estate

    FG to unveil dedicated portal for sale of houses to Nigerians

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

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    Nigeria needs N1.5 trillion within the next 3 years to fix roads - Fashola

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

    The platform is expected to help contributors to the National Housing Fund (NHF) access mortgage loans on a first-come, first-serve basis.

    This disclosure was made by the Minister of Works and Housing, Babatunde Raji Fashola while speaking at the ninth meeting of the National Council on Lands, Housing and Urban Development in Jos, Plateau State.

    Fashola, who was represented by the Minister of State for Works and Housing, Abubakar Aliyu, pointed out that the ministry is currently at the completion stages of the first phase of the national housing programme in 34 states of the federation, which provided land for it.

    He said, “We urge the state governments to alert their residents to this opportunity for interested persons to apply.”

    Fashola commended the Federal Mortgage Bank of Nigeria (FMBN) for being at the forefront of the cooperative housing initiative at the federal level, adding that it has the advantage of allowing cooperative members to choose what they design and build to fit their budgets.

    They can leverage their members to get group discount for the purchase of building materials as well as the engagement of contractors.

    Fashola disclosed that FMBN as the driver of the housing initiative has engaged 86 co-operatives in projects; approved N35, 784 billion cumulatively; disbursed N10.95 billion; and processed as at January, 57 co-operative housing development loans.

    Hotflex

    Fashola emphasized that what the Federal Government can do directly in housing is limited compared to what states can do, just as state governments are also limited, compared to what the private sector and individuals can do.

    He said, “The majority of houses available for sale or rent belong to individuals and private companies compared to what states or Federal Government has available. Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property are dealing with private citizens or companies and less so with government agencies.’

    My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the Federal Government has given back to citizens some of what it controls.’’

    He explained, “for example in cases where the rent of businesses or individuals are due for renewal, the private landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one year, two or three years rent in advance.”

    Bottom line

    Nigeria has been bedevilled by a housing crisis that has left Africa’s most populous nation ill-equipped to properly provide accommodation for its citizens and inhabitants.

    Some of the housing problems in the country include unresolved rent tenure arrangements, high cost of building materials, access to infrastructure, deficiency of housing finance arrangements, stringent loan conditions from mortgage banks, time to process legal documents and inadequate government housing policies.

    Jaiz bank

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    Coronavirus

    Covid-19: Nigeria committed to procuring 29 million J&J vaccines

    The Nigerian Government is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative. 

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    AstraZeneca suspends COVID-19 vaccine final stage trial over safety concerns, COVID-19: J&J starts vaccine trials on humans after success on monkeys

    The Nigerian Government says it is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative.

    This was disclosed Mrs Zainab Ahmed, Minister of Finance at the recent ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar.

    What the Minister said

    “Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.

    Already, the sum of N29.1 billion has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1 billion represents about 52 percent of the amount required over 2021-22,” she said.

    She added that FG plans to vaccinate 70 percent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years, with the COVAX agreement willing to cover 43.1 million of the eligible population.

    In case you missed it

    The World Health Organization (WHO)  announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.

    Continue Reading

      





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