Author: Animashaun Luther

By Onome Amuge 

Motor Africa, a mobility & IOT infrastructure startup in Nigeria, and OnePipe, a fintech infrastructure provider, have launched a lending as a service (LaaS) proposition to help mobility entrepreneurs gain access to working capital in the form of an overdraft to finance car repairs, purchase genuine spare parts, vehicle and personal insurance, smart phones, and cash for personal and family welfare support needs.

The lending as a service infrastructure, which utilises hybrid telemetry IOT systems, enables lending partners to create loan products with interest rates and repayment terms, as well as manage credit requests, automatic underwriting, cash disbursement, and repayment collection.

The intelligent repayment collection service enables credit subscribers to make repayments via bank transfer to a dedicated repayment wallet before due dates, failing which the system will automatically disable the engine of the collateralized vehicle and share the geo location with Motor Africa recovery agents in the event of a repayment default.

In addition, the service manages driver repayments to the vehicle owner and provides car maintenance oversights at partnered workshops. It is also backed by a technology, which generates analytical telemetry and remittance income data, assists registered lenders in making informed lending decisions while also managing seamless credit repayments.

Motor Africa, a trade name of envio Logistics Inc, stated that it has activated over 2,000 vehicles already on its platform and is now poised to enable those vehicle owners,who currently use the platform to lease their cars to verified drivers on e-hailing services and local transport services, have access to credit services.

Commenting on the development, Sylvester Chude, co-founder and CEO of envio Logistics Inc, who has been an active participant in the mobility industry, said that cooperating with OnePipe will facilitate automatic payout settlements to vehicle owners and lending partners.

Citing a report  by the African Development Bank (AfDB), Chude said commercial mobility in Africa is estimated to be $150 billion and the market was expected to grow at 8.5 per cent between 2018 and 2023.

 “Commercial transportation is a crucial service for the growth of any economy, and the role of technology and innovation is essential for its success in Africa,” he stated.

Chude also confirmed that the objective of Motor Africa is to facilitate the participation of financial institutions and individuals in funding the car supply gap in order to increase mobility in Africa.

On its part,  OnePipe stated that working with Motor Africa will assist in  addressing the challenges African mobility entrepreneurs experience when trying to get working capital financing.

By Onome Amuge

The Nigeria Sovereign Investment Authority (NSIA), manager of Nigeria’s sovereign wealth funds, has reiterated its commitment to sustaining diversified assets strategy in its core areas of healthcare, toll roads, gas industrialisation, technology, ESG, financial markets infrastructure, toll roads, power and agriculture.

This is on the back of a 10.5 per cent growth in net assets to N1.02 trillion in 2022 and attainment of over $500 million in foreign direct investments between 2013 and 2023 despite volatility and headwinds across major markets.

Aminu Umar-Sadiq, NSIA’s managing director and chief executive officer of the Authority, made the disclosure during the presentation of the 2022 audited financial statements in Abuja, Nigeria’s capital city.

Umar-Sadiq, who noted that NSIA created 560,300 jobs in the past ten years, added that the firm is  committed to delivering increased investments in critical sectors of the economy by driving growth across its funds and attracting third-party capital into Nigeria’s infrastructure sector.

The NSIA CEO also assured that the firm  will continue to sustain a diversified assets strategy.  “In 2023, we will be resourcing our various platforms targeted at emerging sectors – renewable energy, sustainability, innovation, and healthcare – which will ensure the Authority achieves its dual objectives of delivering financial returns and impactful social outcomes,” he said.

Umar-Sadiq said that the strong financial performance of the Authority, which saw a 10th year continuous run of positive earnings, reflects the resilience of its investment strategy and the quality of its earnings in spite of numerous challenges posed by the global economic environment.  He also stated that $1.6 billion contributed by the government since 2013 were efficiently utilised by NSIA  to generate net asset value (NAV) of $2.27 billion as of 31st December 2022.

Other major highlights of activities  recorded by NSIA include the investment of over $500 million in domestic infrastructure,growing net assets by 552 per cent from N156 billion in 2013 to N1.02 trillion in 2022, 34.5 per cent year-over-year growth in earnings from interest income, infrastructure business revenue, and fiduciary activities’ management fees,amounting to N15.7 billion year-on year growth.

 On the flipside, total comprehensive income closed at N96.96 billion for 2022, a decline of 34.0 per cent relative to N147. 98 billion in 2021.

Commenting on the dip in total comprehensive income, Umar-Sadiq explained that the decline was largely attributed to strong macroeconomic headwinds marked by unprecedented shocks, such as the COVID-19 lockdown in China, the Russia-Ukraine conflict, food and energy crises, supply-chain disruptions, soaring inflation, and monetary policy tightening, which precipitously impacted the financial markets.

He,however, pointed out that  the Authority was able to outperform most global investment benchmarks and indices to provide the resilience to withstand market challenges and deliver a respectable performance.

In his words: “Despite the volatile, uncertain, complex, and ambiguous nature of the markets in 2022, we continue to post positive earnings through effective management of the resources entrusted in our care coupled with the deft and harmonious working relationship of the board, executive management, and partner institutions.

“The results that we are presenting today are a continuation of the sterling foundation laid at the NSIA since its inception. It is a legacy of achievement that we are sustaining and improving upon. We are committed to ensuring that Nigeria’s Sovereign Wealth Fund consistently ranks highly in the league of state owned funds in terms of transparency, governance, and performance.

“Our foray into some new terrains underscores our resolve to ensure that optimal returns are generated through responsible investing. For emphasis, we have on behalf of the present and future generations expanded our focus sectors to include climate finance, renewable energy, innovation, and technology.”

The NSIA MD noted that the 2022 financial statements indicate a continuity of the performance trajectory from the pioneer team to the current one and assure of continued high-quality and steady leadership for the Authority.

Going forward in 2023, Umar-Sadiq said the Authority is making necessary plans toward further growth of its net assets through strategic asset allocation and diversification, portfolio selection, and other options to enhance the risk/ return profile and liquidity.

The CEO listed NSIA’s five focus areas in 2023 to include; driving growth through platform, assessing exit opportunities from existing investments, attracting local currency capital, increasing third-party asset management portfolio and, leveraging Environmental, Social and Governance (ESG) as an asset class.

Also speaking at the event, Olubisi Makoju,executive director, corporate services and operations, attributed the decrease in the Authority’s  total comprehensive income to the effect of market factors on portfolios  that aren’t under the Authority’s control.

“Our stabilization and future generation funds are assets that are exposed to the market and therefore, because the global headwinds were very tough in the period, we did marginally lose some value there.

“But like the MD explained, these are fair valuations and as long as those assets are not sold, when the market recovers, we are definitely certain that these fair valuations would improve and we’d make back what may seem to have dropped,” she assured.

Makoju explained that NSIA’s 34.5 per cent earnings from the infrastructure business and other fiduciary activities,shows that the investments for which the Authority had total control actually grew because these were non-volatile earnings and therefore were completely within the ability of the management to control.

By Olivia Nnorom

The Central Bank of Nigeria (CBN) has proposed that banks transfer funds in accounts that have been dormant for up to 10 years into a Trust Fund account which will ultimately be invested in Treasury Bills.

This is contained in the recently released exposure draft of guidelines on the Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions In Nigeria.

The exposure draft, accompanied with a circular signed by Chibuzor Efobi, the director of financial policy and regulation department of the apex bank, said the guideline was in response to requests from banks and other stakeholders for the CBN to clarify the procedures for the management of dormant and inactive accounts by banks in the country.

The circular also called for inputs which should be sent within three weeks.

According to the information in the draft, banks and other financial institutions (OFIs) are expected to transfer all unclaimed balances in accounts that have been dormant for up to 10 years into an Unclaimed Balances Trust Fund (UBTF) pool account which will be domiciled at the CBN.

Also, they are expected to transfer unclaimed balances quarterly, not later than 15 days of the first month of the subsequent quarter; and retain all records of communication on the management of dormant accounts for a minimum of 10 years.

The guideline stated: “Banks and OFIs, are to maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account; invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee’; and refund the unclaimed funds to the beneficiaries not later than 10 working days from the date of receipt of the request.”

It noted that banks including other financial institutions have the responsibility to contact account holders whose accounts are dormant and are also required to publish the list of dormant accounts on their website.

Financial institutions were also saddled with the responsibility of monitoring inactive accounts and notify the customers as well as protecting such accounts from unauthorized usage; establish procedures that will ensure continuous contact with customers to reduce the incidence of inactive/dormant accounts.

The CBN also directed the banks to maintain records of procedures and periodic efforts to contact customers with inactive accounts, advise customers on the need to communicate changes in their names, addresses, phone numbers, emails and next-of-kin.” the exposure draft stated. They are also to bear the costs of maintaining inactive and dormant accounts as well as contacting the customers,rendering quarterly reports on dormant accounts in a prescribed format to the banking supervision department and other financial institutions supervision department of the CBN.

Still on the roles of financial institutions on the new policy, the CBN said they will continue to reflect dormant account balances as deposit liabilities and such balances, where applicable, shall continue to earn interest until they are transferred to CBN.

“Maintain a register for funds transferred to CBN for reclaim and audit trail. Publish, on their websites, details of all dormant accounts, six months prior to their eligibility for transfer to CBN. However, other financial institutions (OFIs) without websites shall publish the same on their Association’s website.’ the guideline stated.

Furthermore, the banks were directed to publish the list of dormant accounts holders in at least two national daily newspapers, except for unit microfinance banks, which shall publish in their premises. Information to be published shall include the name, address of the branch, and next-of-kin of account holder. It should also be stated that the account has been transferred to the register of the dormant account.

By Onome Amuge

Despite recording lower crude oil production in March 2023, Nigeria retained its position as the largest oil producer in Africa as it pumped 1.2 million barrels per day (bpd) production rate in the month under review, according to the Organisation of the Petroleum Exporting  Countries (OPEC).

OPEC, in its most recent monthly oil market report, showed that total OPEC-13 crude oil production averaged 28.80 million barrels per day in March 2023, lower by 86,000 barrels per day month-on-month. OPEC stated that crude oil output increased mainly in Saudi Arabia, but production in Angola, Iraq and Nigeria declined in March 2023.

The report further stated that in the first quarter of 2023, world oil demand is estimated to have grown by 2.1 million barrels per day year-on-year, underpinned by a strong rebound in China’s oil demand, as well as robust oil demand data in other non-OECD regions, particularly the Middle East and Asia.

The oil market report also noted that the share of OPEC crude oil out of total global production was marginally unchanged at 28.8 per cent in March compared to the previous month.

Looking ahead, OPEC maintained its forecast of global oil demand growth which remained unchanged to an estimated 2.4 million barrels per day year-on-year in the second quarter of 2023, 2.5 million barrels per day year-on-year in the third quarter of 2023 and 2.3 million barrels per day year-on-year in the fourth quarter of 2023.

The report also showed that Nigeria had the highest crude production in Africa, 200 thousand barrels per day above second-placed Algeria which recorded one million barrels per day. Meanwhile, Angola recorded 972,000 barrels per day to emerge the continent’s third largest producer in March 2023.

Meanwhile, previous data from the Nigerian Upstream Regulatory Commission (NUPRC) showed that Nigeria’s crude oil production for March was the lowest recorded since the start of the year 2023.

According to NUPRC data, Nigeria was only able to pump 1,268,202 barrels per day of crude oil in March, a significant decline when compared to 1,306,304 barrels per day recorded for February 2023.

By Olivia Nnorom

Twitter has partnered eToro, a social trading and multi-asset investment company that focuses on providing financial services, to allow its users access and trade stocks, cryptocurrencies, and other financial assets.

The new feature, rolled out on Thursday,is expected to advance Twitter’s current cashtag feature.

Confirming the partnership in a tweet;eToro tweeted, “very excited to be launching a new $cashtag with twitter, which will enable twitter users to see real-time prices for a much wider range of stock, crypto $ other assets as well as having the option to invest through eToro”.

Twitter users were earlier able to view real-time trading data from markets-charting platform TradingView, but only on some assets such as the S&P 500 index and shares of certain companies such as Tesla (TSLA.O). Now, through eToro, they can view crypto assets with an added option to invest.

Through this new partnership with eToro, users can now make use of eToro’s market charts on a range of financial investments, simply by searching for the relevant cashtag usually by putting a “$” sign in front of the ticker, like $TSLA for Tesla stock.Afterwards, a chart appears, reflecting the asset’s 24-hour price performance along with a link that says “View on eToro” where users can then view more in-depth market information and purchase the asset, along with other assets offered by the platform.

Since acquiring Twitter for $44 billion in late October 2022, Elon Musk, Twitter CEO has brought about a series of changes to the microblogging website, including rolling out a subscription-based plan for verified users and executing mass layoffs.Musk stated that the goal is for the app to become the biggest financial institution in the world.

By Olivia Nnorom

Centre for the Promotion of Private Enterprise (CPPE) has called on the federal government of Nigeria to increase budgetary allocations to insurance and pension to enhance growth in the two sectors.

Muda Yusuf, chief executive officer, CPPE, made the call at Business Today annual conference in Lagos.

Speaking on the theme, “consumer satisfaction in deepening penetration in insurance and pension sectors”, Yusuf called on governments at all levels and their agencies to comply with employers liability insurance, in line with the workmen’s compensation Act 1987; buildings under construction insurance-section 64 of the insurance act 2003.

He listed other compulsory insurance the government should ensure compliance and enforcement to include; occupiers liability insurance as written under section 65 of the Insurance Act 2003; Motor Third Party Insurance of section 68 of the Insurance Act 2003;and Health Care Professional indemnity insurance under section 45 of the NHIS Act 1999.

Speaking in the same vein, Sunday Thomas, commissioner for insurance, represented by Rasaaq Salami, head of corporate communications, National Insurance commission (NAICOM) said that customer satisfaction remains key to the insurance business.

“It is a good thing for you to be able to sell insurance policy for a first timer and once you miss that opportunity of giving the satisfaction the customer needs, which might be the last time you will have that customer. That is why customer satisfaction is very key to our business, especially insurance being the business that you have to market before you sell,” he said.

He concluded by emphasising that insurance is not something that is picked on the shelf, noting that it has to be marketed, which is why customer satisfaction is very key.

By Olivia Nnorom

Nigerian digital commerce startup, Ourpass, has rebranded its one-click checkout services into a global neobank for businesses as part of its mission to revolutionise commerce  in Nigeria.

The company, in a statement said that it was providing businesses with access to banking, payment and business management tools to enable them start, grow and scale their businesses,irrespective of size and location.

Following the development, OurPass’ new business banking path will enable merchants to create a free business bank account to separate business and personal accounts. Businesses can also use OurPass to access business loans without collateral, generate payment links via email and SMS, and get paid instantly.

Samuel Eze, OurPass CEO/founder, who confirmed the company’s restructuring on LinkedIn, explained that the diversification was motivated by its ambition to provide end-to-end solutions for businesses beyond offering a niche service.

“OurPass launched in 2021 after raising a $1m pre-seed led by Tekedia Capital with a goal of helping businesses increase their sales conversion rates by eliminating long entry forms at checkout using its one-click checkout solution.

“However, as the business observed the market and conversed with its customers, it recognised that beyond offering a niche service, it could provide end-to-end solutions that helped entrepreneurs grow every aspect of their business,” Eze said.

Speaking further on the rebranding, the OurPass CEO noted that the post-COVID market reality necessitated a new direction for the startup to satisfy its customers.

He explained that when the company finished plans to start scaling their products, it was already post-COVID, and the dynamics of the market had changed, noting further that businesses deviated from needing a one-click checkout solution.

Eze further disclosed that the company’s optimised payment tools, such as POS terminals, QR codes, and instant transfers, will enable businesses to receive and make payments seamlessly.

“In addition, OurPass provides a quick invoicing tool to keep businesses organised and help them get paid on time, and is building out its inventory, storefront, and digital tag systems,” he added.

Going forward, Eze said OurPass aims to serve over 200,000 active businesses by the end of Q4 2023 to achieve profitability and has deployed foot soldiers in market clusters around Nigeria” to acquire businesses.

By Cynthia Ezekwe

Old Mutual Nigeria, a subsidiary of Africa’s financial services group, Old Mutual Limited (OML), has launched a radio programme entitled ‘The Money Beats Show,’  to promote financial education and adoption of insurance products for Nigerians.

The Money Beats show intends to upskill Nigerians to be financially smart and savvy risk managers by getting them to decode financial lessons from contemporary and trendy songs, and will run weekly on Wazobia 95.1 FM, Lagos and Smooth 98.5 FM, Lagos, every Thursday and Friday for the next 13 weeks.

According to the company, the programme is designed to drive critical financial lessons, including wealth creation, financial security, savings, and wealth protection, among others, through music, pop culture and a relatable outlet for people.

Alero Ladipo,Old Mutual Nigeria’s executive head, marketing and customer experience, while  commenting on the programme, noted that the show would redefine how Nigerians can decipher financial lessons using entertainment and pop songs.

“Music is massive in Nigeria, with superior global acclaim. We believe it is possible to leverage this endowment to upskill Nigerians with these key financial skills to foster smarter decision-making and improved life quality through financial security,”Ladipo said.

She also added that the company is confident that getting individuals to go beyond the lyrics of the songs as they know it to decipher hidden financial tips is a strong self-learning tactic that will build knowledge and confidence in financial education for Nigerians, which  will help them to build sustainable wealth and make life-changing decisions.

Ladipo further noted that listeners who will call into the show weekly and provide the hidden financial lessons correctly during the show stand a chance to win cash prizes as a reward for their ingenious participation, while adding that the company will continue providing insurance educational programme for Nigerians, to enable them  understand risk management and equip them to make informed decisions on how to mitigate them.

By Business A.M. 

The Lagos State government said that its officials have commenced investigations of an unapproved seven-storey building which collapsed on Wednesday at First Avenue, Banana Island, Ikoyi, Lagos.

Mukaila Sanusi,  deputy director, public affairs, Lagos State Ministry of Physical Planning and Urban Development,in a statement, noted that no approval was given for the construction of the collapsed structure.

“Few who sustained injuries are being treated. There is no fatality. This unfortunate incident happened while casting was being done,” Sanusi stated.

The statement also noted that Tayo Bamgbose-Martins,the commissioner for Physical Planning and Urban Development, visited the site to assess the situation and launch an investigation.

“We ask members of the public to remain calm and expect further information from the ministry as we know more,” the statement added.

Business A.M gathered that the incident occurred on Wednesday between 3 p.m. and 4 p.m. Interestingly,Banana Island,  the neighbourhood where the building collapsed, hosts several high end residential developments owned by some of the wealthiest Nigerians, making it the most expensive neighbourhood in the country.

Meanwhile, Margaret Adeseye, the general manager, Lagos State Fire Service,stated that no fewer than seven persons were rescued at the site with varying degrees of injury.

Adeseye said seven persons were rescued alive with varying degrees of injury. She also confirmed that an investigation has been ordered to ascertain the cause of the collapse.

By Cynthia Ezekwe 

Patricia Technologies,an Africa-centric integrated alternative payment and e-commerce company that facilitates the easy use of digital currencies for everyday transactions, has  announced the launch of the Patricia innovation hub, a co-working space designed exclusively for innovative minds passionate about putting Africa on the global tech map, to position the continent as a major player in the global digital economy.

The innovation hub, a part of Patricia’s CSR, is a space for tech  enthusiasts to connect, share ideas, and collaborate on innovative projects that have the potential to transform the continent, and  offers a range of facilities as well as services that support the needs of tech-savvy and innovative minds.

Speaking at the launch of the hub, Fejiro Hanu Agbodje , Patricia CEO, affirmed the company’s commitment to providing conducive environments that foster creativity, innovation, and growth for Africa’s tech enthusiasts, creative thinkers, and entrepreneurs to thrive and put the continent in the global tech spotlight.

The company implored  tech solopreneurs, and a team of professionals, who have been looking for a vibrant community of like-minded individuals dedicated to creating solutions to some of the continent’s most pressing challenges to be part of the Patricia innovation hub. It stated that the next phase of the project will be completed to enable the innovation hub to service more businesses and enterprises, as it will  include a functional and creative environment.