By Cynthia Ezekwe 

The Central Bank of Nigeria (CBN) has disclosed that loans from commercial banks to governments at all levels stood at N26 trillion as at January, 2023.

The apex bank made the disclosure in its latest money and credit statistics data  published recently  on its website.

According to the report, the  net domestic credit banks’ lending to the private sector is N42.25 trillion, while the total bank credit to the economy reached N68.90 trillion in January.

The figure indicates that there is a  37.56 per cent or N18.8 trillion increase compared to N50.09 trillion in the corresponding period of 2022.

Breakdown of the CBN’s data showed that banks’ credit to the private sector increased by N7.07 trillion or 20.09 per cent to N42.25 trillion in January 2023, from N35.18 trillion in the corresponding period of last year.

The data also disclosed that banking sector credit to the private sector in January 2023  increased by N451.63 billion or 1.08 per cent, compared to the N41. 80 trillion of December 2022.

However, the breakdown of the data shows that net credit to the government rose by N11.74 trillion or 78.79 per cent to N26.65 trillion in January from N14.90 trillion in the corresponding period of 2022.

On month to month, net credit to the government  increased by N1.99 trillion to N26.65 trillion in January from N24.66 trillion in the preceding month.

By Business AM

The economic downturn experienced in Nigeria and other parts of the world has forced many Many people to live monotonously, repeating the same daily routine in a bid to sustain their livelihoods. This has led to employees working tirelessly just to please their managers in return for monthly payments that are oftentime, never enough to cater for their daily expenditures.

To this end, financial analysts consider investing as one of the most effective ways of building wealth, with the assurance of gaining value over time  and compounding long term growth.

According to experts, though investing in general might be overwhelming, it can also be one of the simplest, most affordable, most rewarding things people can do with their time. Also, it has a huge potential  to  improve the  lifestyle of the average human, and the positive returns guarantee a better future and a fortress through economic distress.

A bank account alone is insufficient

Although saving money is crucial, experts say that it only tells part of the tale. The first step for wise savers, they noted, is to accumulate enough disaster funds in a savings account or by investing in a money market account. However, investing in the financial markets provides several potential benefits after accumulating three to six months’ worth of easily accessible savings.

Why investing is very critical

The gradual increase in the expense of living known as inflation can influence our financial stability. However, making wise investment decisions, such as investing in assets that can not only produce higher income returns but also have the potential for capital growth is one way to help outpace inflation and produce positive “real” returns over the long run. It is also seen as a viable method to use money and possibly,increase wealth.  Also, the power of compounding and the trade-off between risk and return are fast becoming the main reasons investing has a higher development potential.

Leverage on compounding

When a dividend or profits from an investment are reinvested, compounding takes place. These profits or rewards then produce more profits. In other words, compounding occurs when one’s assets produce income from income that has already been generated.

For instance, if one invests in a stock that pays dividends, such a person might want to think about reinvesting the dividends to maximize the possible power of compounding.

Possibility of generating positive long-term profits

Savings refers to putting some of today’s money away for tomorrow, whereas investing refers to putting  money to work in the hopes of earning a higher yield over the long run. Different asset types, such as cash, fixed interest, real estate, and stocks, produce varying rates of return (which is relative to the risk of the investment).

The greatest overall returns have historically been achieved by “growth” assets, such as stocks and real estate, but they have also historically experienced the largest peaks and troughs. As an investor, you have the chance to generate ongoing income returns as well as capital development over the longer term (like dividends from shares or rent from a property).

The returns from “defensive” assets, such as fixed income and cash, may not have been as high as those from growth assets over time, but they were less erratic, with lower peaks and troughs.

Beginners can also easily enter the forex market. The hours of various international markets vary, making it feasible to trade forex continuously. Due to the market’s high liquidity, transaction fees are usually low.

Spreading out  risk may aid in generating long-term rewards.

With diversification in mind, experts advise that one has to resist the urge to make high-risk investments right away until  an investing experience is gained in which the investor is aware of the dangers and opportunities.

They also noted that although investing in high-risk assets has the potential to yield larger returns, there is a very real chance that you could lose part or even all your capital if something goes wrong.

They also advised that higher-risk investments could be beneficial for more seasoned investors who are better able to manage risk and profits. But, even for experienced investors, it is sense to only think about investing no more than 10 per cent of  one’s assets in high-risk securities.

By Cynthia Ezekwe

O3 Capital Limited,  a digital bank, offering credit and prepaid cards has  announced the successful approval of its N5 billion Commercial Paper (CP) programme by the  Financial Markets Dealers Quotations Exchange (FMDQ).

A statement from the company disclosed that the approval was granted on 7 February, 2023,while Union Capital Markets Limited (UCML),a financial solution provider that offers investment banking, asset management, securities, and advisory services was the sole arranger of the CP programme.

Commenting on the successful registration, Abimbola Pinheiro, the company’s Chief Executive Officer (CEO),described the CP Programme as a strategic move for O3 Capital towards achieving the next phase of the growth plan.

According to Pinheiro, the  objective is to expand the existing credit card portfolio and achieve international acceptance with a new credit card product in partnership with an international card scheme for the Nigerian market.

On his part, Egie Akpata, the director of UCML expressed delight with the successful registration of the O3 Capital Limited ₦5billion Commercial Paper Programme.

 “This reinforces our commitment to enable all our clients access the debt capital market and optimize their capital structure. We are glad that UCML Capital Limited was instrumental in the successful registration of the programme and thank the board and management of O3 Capital Limited for the opportunity to work with them,’’ Akpata said.

The UCML director added that the opportunity to access the CP market as an alternative source of funding will further enhance O3 Capital’s ability to unlock value for all stakeholders with a platform to raise short-term finance within the Nigerian debt market, while stating that the  approval of the CP Programme by FMDQ Securities Exchange represents a major milestone in the company’s growth aspirations.

By Onome Amuge

Curacel, Africa’s leading insurance infrastructure provider, has raised $3 million in seed funding to roll out new technology solutions designed to power the next generation of insurance experiences in Africa.

The Nigeria-based platform said the  new funding will support its expansion into North Africa, starting with Egypt and Morocco, enabling the company to roll out its services in  the region and also deepen its presence in other parts of the continent.

The seed funding round included Tencent, AAF Management (invested in Sure, Flutterwave), Elefund (invested in Robinhood, Pie Insurance and Sure), Blue Point Capital Partners,  Pioneer Fund, Olive Tree Capital and Y Combinator, as well as James Park (CEO of Fitbit), Olugbenga ‘GB’ Agboola (CEO of Flutterwave), Babs Ogundeyi (CEO of Kuda) and other strategic investors. Top executives from Covergenius, Zopper and Pie Insurance will also join Curacel’s advisory board as part of the round.

Curacel,in a statement, explained that its rapid expansion is driven by the fact that the combination of a fast growing population, a rising middle class and increasing access to financial services across the continent means more Africans have the opportunity to experience a wider range of products and services.

“From buying cars to accessing accommodation, these experiences come with various risks and insurance companies play a huge role in making it easier to manage the risks and enjoy these experiences with confidence. However, with insurance penetration across the continent still under three per cent, many Africans are having to take on these entirely by themselves,” the company explained.

It further noted that the paper-based approach and antiquated technology that powers many insurers’ processes is time-consuming, unduly expensive and prone to fraud and waste. As a result, African insurers lose more than $12 billion per year to fraudulent, wasteful and abusive claims, which makes them understandably cautious and risk-averse with the customer they choose to serve.

To address these challenges, Curacel said it is committed to making  it easier for insurers to distribute their products, automate their claims processes, and drive revenue growth by giving them easy-to-use technology solutions that have been specifically designed to drive up insurance inclusion on the continent.

“With Grow, Curacel’s embedded insurance product, more than 100 banks, fintechs, logistics companies and other tech-enabled companies, including ALAT (Nigeria’s first digital bank), Providus, PalmPay, Float, etc and others are empowered to increase their recurring revenues by offering digital insurance products that are seamlessly embedded into their existing products and services, driving much-needed insurance penetration and customer loyalty,” the statement noted.

The statement disclosed that leading insurers like AXA Mansard, Liberty Health, Old Mutual and Jubilee Heath also leverage Curacel’s market leading technology to improve the efficiency and accuracy of their claims processes. Moreso, the company’s AI-powered infrastructure means claims can be submitted and processed in real time, helping insurers to reduce their claims cycle by more than 70 per cent and process up to 10 times more claims.

Data presented by Curacel, showed that it has processed over $100 million worth of claims, working with more than 20 insurers and more than 5,000 service providers in eight countries across Africa. In 2022, the company grew its transaction volume by 600 percent and increased its revenue by 500 percent.

Henry Mascot, the CEO and co-founder of Curacel, said the company  is  bullish on the potential of the right technology in the right places to close the protection gap across Africa and emerging markets.

“It is an exciting time for us as we secure the capital to deliver the vision and onboard the people who have built these technologies at scale in more mature markets, and we are looking forward to delivering more technology solutions to drive up insurance inclusion,” Mascot said.

Omar Darwazah, managing director and general partner at AAF Management, remarked that the insurance penetration rate in Africa, which stands at less than three per cent, is one of the lowest in the world. He,however, pointed out that the situation presents an incredible market opportunity for Henry and the team at Curacel to bridge the insurance gap.

We are excited to participate in the company’s Seed round and join Curacel’s mission in building easy-to-use technology solutions for insurers to distribute their products on the continent,” Darwazah added.

On his part, Serik Kaldykulov, general partner at Elefund, observed that Africa remains a relatively untapped market when it comes to insurance, adding that technology presents the best opportunity to reach new users and deliver excellent services.

According to Kaldykulov, Curacel has built a suite of solutions and an impressive track record of success that makes Elefund very excited to be supporting the company on its mission to use technology to drive up insurance inclusion in Africa.

By Rosemary Iwuala

Qotto, a solar kits provider with operations in Burkina Faso and Benin, has raised $8 million in a Series A equity-debt round led by the IBL group, a billion-dollar conglomerate headquartered in Mauritius with business interests in a number of sectors including energy, financial services, logistics, distribution, and engineering. The Off-Grid Energy Access Fund (FEI-OGEF), Cordaid, and Qotto’s existing investors also participated in the round.

The development,according to Qotto, aims at enhancing its plans to scale in existing markets, and expand to Ivory Coast where it is set to begin operations by next month.

Founded in 2016, Qotto designs, distributes, leases and maintains stand-alone solar home systems and lanterns to individuals residing in the least electrified regions of Africa. Through a pay-to-own model , it avails its products to individuals in sub-Saharan Africa that are off-grid owing to underdeveloped national power grids.

Qotto develops the autonomy of the rural households in Africa, providing access to electricity through solar panels. It helps transform the daily lives of the customers by installing these solar kits to help achieve their dreams. By offering electric autonomy, it provides great flexibility and quality customer service. It also provides access to the Internet using alternative network (Radio) and provides Nano financial services to underserved population Qotto, which serves tens of thousands of customers in Sub Saharan Africa.

Jean-Baptiste Lenoir, Qotto co-founder and president, said , “For Ivory Coast, due to its consistent pace of development relative to the broader West Africa region, and after having tested and optimized operations and services in Benin and Burkina Faso, Qotto is well prepared for a market entry. Moreover, the customers who have been able to test the Qotto products in the country, have expressed a need and desire to see Qotto enter the Ivory Coast market,”

“Together, we see a great opportunity for the essential services and large Solar Home Systems offerings provided by Qotto,” said Lenoir.

“In sub-Saharan Africa, 650M people do not have access to electricity. 550M do not have access to the Internet and 800M do not have access to financial services. Many of these customers are overlapping in their needs for off-grid solutions, connectivity and financial services,” he added.

Qotto says IBL is drawing its roadmap for East Africa expansion too, after signing a partnership and agreeing to offer off-grid solutions in the region. The expansion which is to take place by September this year, will happen alongside that of IBL, which is planning to strengthen its position in East Africa and to develop its renewable energies exposure.

The growth bid follows the planned introduction of new products in the market, including financial services and internet access hotspots, as Qotto evolves into an all-rounded essential services operator.

“Our edge is that our presence in rural areas allows us to understand the customers and their needs so that we can propose innovative products based on our technical platform,” Lenoir said.

The planned financial services include micro-insurance, micro-credit and micro-savings products, designed in collaboration with partners such as SUNU, a large insurer in West Africa. Qotto said it has already sold thousands of life insurance contracts.

The internet hotspots will be located in high-foot traffic areas like the shops, restaurants or bars.

“Our model helps to solve these critical issues under a single solution – which we call “essential services”, backed by our proprietary technology stack. In addition, we are aligned with the SDGs to serve customers and improve impact indicators in our markets,” he said.

Renewable energy solutions by companies like Qotto are bridging the energy access gap in the least electrified countries like South Sudan, Burundi, Chad, Malawi, Burkina Faso, Madagascar and Tanzania, all located in sub-Saharan Africa, which accounts for 75% of the world’s population with no access electricity.

By Business AM

The Central Bank of Nigeria (CBN) says it has the capacity to produce the redesigned and new naira notes through its subsidiary, the Nigerian Security Printing and Minting Company (NSPMC) and roundly dismissed the claims making the rounds that the NSPMC lacks the ability to print the redesigned notes in large quantities.

The CBN faulted the reports in a statement dated February 10, 2023, and signed by Osita Nwanisobi, the director, corporate communications department.

The statement described as misleading, the report which claimed that Godwin Emefiele, the CBN governor had, while briefing the National Council of State, attributed the current challenge in the distribution of the newly redesigned naira banknotes to a shortage of printing materials.

“We wish to state categorically that at no time did the CBN Governor disclose this during his presentation to the National Council of State at its meeting on Friday, February 10, 2023.

“For the records, what Mr. Emefiele told the meeting was that the NSPMC was working on printing all denominations of the Naira to meet the transaction needs of Nigerians.

“While the CBN appreciates the concerns shown by all stakeholders about the distribution of the naira, we are alarmed at the extent to which vested interests are attempting to manipulate facts and pitch the public against the Bank,” the statement read in part.

The CBN  reiterated its  commitment to performing its monetary policy functions, as stipulated in the CBN Act, 2007, as amended. It also restated that the NSPMC has the capacity and enough materials to produce the required indent of the naira.

The CBN, therefore, appealed to the public to disregard the false allegations and exercise more restraint, even as it works assiduously to increase the circulation of the new notes in the country.

In a related development, the apex bank debunked a voice note trending on social media, alleging that the CBN planned to shut down some banks, particularly in a specific geopolitical region of the country.

“We wish to state unequivocally that there is no such plan and that the claims are illogical and do not comply with the workings of the Nigerian banking system,” the statement added.

The CBN advised the public to ignore such recordings as they do not represent its policy thrust and are only the desperate attempts of persons bent on inciting the public against the apex bank.

BY BEN EGUZOZIE

• Digital issuance platforms expand into new markets

• Africa penetration low 

• 2.6% Nigerians own credit cards 

• Nigeria penetration at 0.6% 

• To increase to 1.8% by 2028

 

Credit cards will account for $9.7 trillion in total spending globally by 2027, providing a huge opportunity for card issuers to drive revenue growth by choosing the optimal credit card strategy, as rising affluence in emerging markets poses a significant driver of credit card adoption.

 

As digital card issuance platforms expand into new markets, a new study from Juniper Research has found that the number of credit cards issued via digital card issuance platforms will exceed 321 million globally by 2027, from 120 million this 2023.

 

This growth of almost 170 percent reflects the use of new advanced digital capabilities such as digital loyalty schemes and instant issuance, as card issuers aim to combat competition, including from buy now pay later.

Digital card issuance platforms allow card issuers to create cards using an API-driven approach; enabling cards to be delivered instantly to digital wallets, with the option for a physical card; and thus boosting flexibility significantly.

 

With a global $9.7 trillion opportunity, it was found that credit cards issuance will be critical to addressing the $9.7 trillion in spend globally by 2027, according to a new report, “Credit Cards Strategies: Innovation Analysis, Digital Transformation & Market Forecasts 2023-2027”.

According to the report, this represents a significant opportunity for card issuers to drive revenue growth by choosing the optimal credit card strategy, as rising affluence in emerging markets poses a significant driver of credit card adoption.

 

As such, digital card issuance platforms are critical to delivering credit offerings in these mobile wallet-dominated markets.

Nick Maynard, research co-author, explained further that, “In emerging markets, the ability to instantly issue digital cards will be a key factor in users choosing credit cards over other payment methods. Card issuance platform vendors must ensure localisation to enable cards to be quickly pushed to the wallets popular in each market.”

 

Penetration of credit cards issuance is still low in Africa, though the continent has a vibrant youth population with a taste for tech and digital payments.

 

In Nigeria, a report by Statista said 2.6 percent or 726,000 of the population own credit cards as of the end of 2021. The penetration level is 0-6 percent, and is expected to rise to 1.8 percent by 2028. This is quite low when compared to 45.14 percent of Nigerians who have accounts with financial institutions as of 2021, according to Globaleconomy.com. Also, Nigeria is one of the top three unbanked countries in the world, with 40 percent of its population without a bank account; and out of the 59 million unbanked adults, 73 percent do not have the essential documents to open a tier-three bank account.

The research predicts that by 2027, the monetary value of rewards for users from credit card use will reach $103 billion globally, driving overall adoption. It recommended that card issuers focus on app-based loyalty to maximise the appeal of these rewards; partnering with well-connected digital loyalty programme providers to maximise their appeal. Should issuers fail to do this, they will lose out to better-connected vendors in a highly competitive credit cards market, the report warned.

If you love sports betting, gambling, or online casinos, it is always better to play responsible gambling. Know the risks, set limits, and keep control to play responsibly. Enjoy the game without risking more than you can afford to lose; then, you’ll get a good experience.

Responsible gambling allows you to engage in gambling activities safely and sustainably. More and more casino operators, including popular ones like betway app are embracing the concept of responsible gaming. It helps minimize the harm from gambling, including financial loss, addiction, and other negative consequences. Remember that gambling should be an enjoyable and entertaining activity for you and not one that results in harm.

Why Is Responsible Gambling Important?

Here are some reasons that make responsible gambling important:

●     Prevents financial harm

Responsible gambling sites like Betway app can help to prevent the negative consequences that can arise from gambling. This includes financial harm, addiction, relationship breakdowns, and mental health issues.

●     Avoiding legal troubles

Irresponsible gambling can result in legal problems, but responsible gambling helps you stay within the bounds of the law. It allows you to gamble without getting caught in any legal case in your country.

●     Reducing stress and anxiety

Gambling can be a source of stress and anxiety, but responsible gambling helps gamblers enjoy the game without risking their well-being. Also, by playing responsible gambling, you can invest in boosting income and not lose in betting.

How Do You Pick Responsible Gambling?

Here are pro tips for playing responsible gambling:

Set a budget: Before you start gambling, set a budget for yourself and stick to it. Don’t gamble with money you can’t afford to lose.

Set time limits: Set time limits for your gambling sessions and stick to them. Don’t gamble for extended periods.

Play for fun: Gamble for entertainment rather than as a way to make money. Keep your expectations realistic, and don’t chase losses.

Take breaks: Take regular breaks when gambling to avoid becoming too engrossed in the game. This will help you maintain perspective and prevent excessive gambling.

Know the odds: Understand the odds of the games you are playing and don’t gamble on games with odds stacked against you.

Final Words

Whether you gamble or not, it is essential to care about responsible gambling and to support efforts to promote it in all its forms. Choose responsible gambling apps like the Betway app to play safely and securely.

By Business AM 

The Nigerian Securities & Exchange Commission (SEC) has granted Bamboo Systems Technology Limited , a digital sub-broker license, allowing the company to operate in the Nigerian capital market as well as include Nigerian securities on its platform.

 

A statement by the leading online brokerage firm in Africa, explained that the SEC licence, ensures oversight of the relationship with its sponsoring broker, Lambeth Capital, while also empowering it to enter into partnerships with multiple brokers to serve its clients.  It added that the licence will also enable it to deepen its relationships with financial service providers to offer its API services, while maintaining its commitment to best practices and allowing its retail investors the ability to trade local securities on the Nigerian Exchange Group.

Bamboo said it began the rigorous application process for the SEC’s digital sub-broker licence when it was introduced in 2021. This, it said,  included a thorough examination of its finances and governance process.

 

Commenting on the recent development, Richmond Bassey, CEO and Co-founder of Bamboo, said the company  is thrilled to reach the milestone and is fully committed to its obligations as a registered digital broker.

 

“Since the launch of Bamboo, we work every day to provide the best technology solutions, backed by industry best practices, to allow Nigerian retail investors to access an unprecedented number of digital securities to build long-term wealth. We are grateful for our collaboration with the SEC, which has shown its dedication to protect investors while allowing for innovation to flourish,” Bassey said

 

Founded in 2019, Bamboo is an online brokerage app that enables Africans to invest real time in local and foreign asset classes. As such, Bamboo users can invest fractionable amounts in their favorite publicly listed US companies from Tesla to Apple, ETFs, mutual funds, or fixed income products. For users who are new to investing, Bamboo offers a wide range of educational materials from investment guides to a stock market course to regular events and webinars.

By Cynthia Ezekwe

 

Oliver Alawuba, the Group managing director/chief executive officer,United Bank for Africa (UBA) Plc, has been conferred an honorary doctorate degree in banking and finance by Imo State University (IMSU) Owerri, in respect to his meritorious services, and  immense contributions to the growth of banking and finance in Nigeria and across Africa.

The award was  bestowed on Alawuba during the school’s eight convocation ceremony, which was  witnessed by Hope Uzodinma, the executive governor of Imo state,  Rochas Okorocha, the former governor of Imo state; Ernest Nwapa, the  university’s pro-chancellor;  U.U. Chukwumaeze the vice-chancellor of IMSU; vice-chancellors from various tertiary institutions in Nigeria, captains of industries and a host of stakeholders.

 

Commenting on his contribution to the banking sector, the vice chancellor of IMSU disclosed that the conferment is in recognition of the CEO’s contribution to redefining public sector banking in Nigeria and across Africa.

 

“The honour is in recognition of your numerous contributions to the financial sector in Nigeria and Africa and as one of the major drivers who contributed to taking modern banking to all state capitals and major cities in Nigeria where hitherto most banks primarily concentrated on the major commercial centres of the country,” the vice chancellor  said.

 

Alawuba expressed his delight to the leadership of the university for the honour conferred  to him, while  attributing  his success to God and  hard work. He further implored the students to stay focused and diligent whilst congratulating his  fellow awardees.

 

Speaking on his honorary conferment, Alawuba said,  “I am grateful to the management of IMSU for the honour and recognition, and I want to thank the amiable governor, the vice chancellor and other top executives of this great institution for the honour that you have shown me today. I promise that I will continue to do my best to make this school and indeed the indigenes of this great state proud. I also seize this opportunity to advise the young ones to be focused and put their best in their studies, so that one day they will also be recognised globally.”

 

Other awardees of the honorary doctorate degree include the former Governor of Anambra State, her excellency,  Virgy Ngozi Etiaba;  Chika Emenike, CEO of Tummy Tummy noodles, Chitec motors limited, and Kotec group of companies; and Simbi Wabote, executives, Nigerian Content Development and Monitoring Board (NCDMB).

 

Alawuba  is a seasoned banking professional with over 25 years of work experience. He has a broad range of strategic and well-grounded experience in corporate and institutional banking, consumer banking, public sector, retail and commercial banking, project management, corporate governance, and overall bank management.

Prior to his appointment as the GMD/CEO of UBA Group, overseeing the group’s banking operations across its 20 subsidiaries in Africa and globally in the United Kingdom, the United States of America, France, and the United Arab Emirates, Alawuba was  at various times country CEO and Regional CEO of UBA’s rest of Africa operations.

 

The CEO also emerged the best graduating student in food and technology from the Abia State University, and the recipient of multiple awards from humanitarian organisations. He is also a member of several organisations and sports clubs. He is married to Nkeirula Oly-Alawuba, who is an associate professor and they are blessed with seven children.

 

Alawuba  holds a Bachelor of Science(B.Sc.) and Master of Science (M.Sc.) degrees in food science and technology and an (MBA) in Banking and Finance. He is an alumnus of the Advanced Management Programme (AMP), and Strategy Execution Programme (SEP) programmes of the prestigious INSEAD Business School, France and the London Business School respectively.

 

He is also a fellow of the Nigerian Institute of Management (NIM) and an honorary senior member of the Chartered Institute of Bankers of Nigeria (CIBN).