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Billionaire Businessman, Femi Otedola dumps Forte Oil



Kemi Filani News

Nigerian billionaire businessman, Femi Otedola is set to sell his 75 per cent direct and indirect shareholdings in Forte Oil.

This was revealed by the Nigerian Stock Exchange in a statement on its website on Monday.

The statement was signed and made available to reporters by Akinleye Olagbende, the General Counsel of the company.

The statement entitled ‘notification of divestment by the majority shareholder in the downstream business operations,’ reads, “Forte Oil Plc hereby notifies the Nigerian Stock Exchange, Securities and Exchange Commission, Shareholders and the investing community that its Majority Shareholder, Mr. Femi Otedola,

CON has reached an agreement with the Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest of his full 75% direct and indirect shareholding in the Company’s downstream business.

“Mr. Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals.

“The transaction is expected to close in the First Quarter (Q l ) of 2019 subject to the satisfaction of various conditions and receipt of applicable regulatory approvals.

“Standard Chartered Bank, Corporate Finance & Advisory, Dubai and Olaniwun Ajayi LP served as Financial and Legal advisors respectively to Mr. Femi Otedola, CON, while PricewaterhouseCoopers and Stanbic IBTC Capital Limited served as Joint Financial Advisors and Sefton Fross served as legal advisor to Ignite Investments and Commodities Limited.

“This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the ordinary shares or any other securities, nor will there be any sale of the ordinary shares or any other securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted.”


CBN reduces Monetary Policy Rate



CBN goes tough on Nigerian banks, announces fines for failed transaction reversals, others


Nigeria’s central bank (CBN) has slashed the Monetary Policy Rate (MPR) from 14 per cent to 13.50 per cent.

The decision was reached at the Monetary Policy Committee (MPC) meeting of the CBN on Tuesday.

The MPR is the rate the CBN lends to commercial banks. It had remained unchanged at 14 per cent for 30 consecutive months or 15 meetings of the MPC, since July 2016. It moved from 12 per cent in June 2016.

The cut in the MPR is the first time since the CBN decided in July 2016 to pursue a tight monetary policy to bring stability to the financial market and engender growth in the country’s economy.

In announcing the committee’s decision at the end of its 122nd meeting in Abuja, the CBN governor, Godwin Emefiele, said the committee, however, resolved to retain other parameters unchanged.

He said Cash Reserve Requirement (CRR) was left at 22.5 per cent, while the liquidity ratio was kept at 30 per cent.

The CRR is the funds kept with the CBN as a minimum deposit a commercial bank must hold as reserves, rather than lend out.

Prior to the meeting, most analysts expected the MPC to retain the rates unchanged.

Premium Times

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NASCON posts N4.4bn profits; to pay 100k dividend




The Management of NASCON Allied Industries (formerly National Salt Company), a member of the Dangote Group over the weekend released itsfinancials for the year ended December 31, 2018 with a revenue of N25.8 billion and a profit after tax of N4.4 billion. The shareholders will however be paid a dividend payout of 100 kobo per share for every 50kobo share held.

Analysts have attributed the decline in revenue and profitability to the company’s idling vegetable oil and tomato plants for straight two years.

It has however been projected that the shareholders will gain a bumper harvest in the preceding year as latest reports say the company’s Kano-based tomato paste plant has resumed operations. It would be recalled that Tomato paste has been idle for over two years owing to a supply disruption partly caused by a price dispute with farmers
The 1,200 metric tons per day factory, meant to meet domestic demand, reportedly restarted production last week processing about 100 tons a day.

Abdulkareem Kaita, managing director of Dangote Farms Ltd said the major challenge was the scarcity of tomato, because “the local tomato growers could not meet our production demand, we also could not agree with the farmers on the price of tomato per basket.”

Under a new deal with the farmers, the factory will buy tomatoes at prices pegged to what local markets are selling.
Dangote is also developing its own farms with a special tomato strain that could yield 60 tons per hectare, compared with the yield of 10 tons per hectare being recorded by the local farmers, Kaita said.

The company plans to distribute the seedlings to growers to boost their output.

A further breakdown showed that sale of salt remained its biggest business, contributing N20.761bn, down from N22.247bn in 2017, out of which N12.565bn was incurred in cost of sales, as against N11.62bn in prior year, leaving segment profit of N8.195bn from N10.627bn. It was followed by freight income of N4.084bn, compared to the previous N3.858bn, incurring N4.442bn costs in the process, resulting in a loss of N500.245m, down from N583.36m a year earlier. The seasoning segment was however better than freight business, contributing N924.167m income, N839.022m cost that left segment profit at N85.145m; which was a far cry from the profit of N125.732m recorded in 2017 from a lower revenue of N765.295m and N639.564m sales cost. The vegetable oil segment did not contribute to the top and bottom-line in 2018, unlike in 2017, when it contributed N192.904m, but incurred N335.623m as cost, resulting in a N142.719m loss. Tomato paste did not however report any revenue for the year, and yet there was N32.84m in cost and segment loss.

The lion’s share of cost of sales for the year was the N10.66bn for raw materials consumed, up from N10.148bn.

Investment income rose to N468.379m from N354.745m, out of which fixed deposit rose to N381.835m from N309.776m, while treasury bills yielded N86.11m, a significant rise from N44.298m in 2017.
Other income rose 159.07% up from N11.3m in the preceding year to N29.27m, boosted by the N20.672m from insurance claim, which climbed from N10.004m; while sale of scrap soared from N1.292m to N8.593m. Other operating gains stood at N841.85m, from a loss of N1.87m in 2017, which was driven by the N992.058m net foreign exchange gains which did not occurred in the prior year, the impact of which was blighted by the N150.213m losses on disposals, scrapping and settlements property, plant and equipment, up from N1.868m.


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GTBank Dominates CBN E-Payments Awards, Wins 8 out of 12 Banking Honours




Guaranty Trust Bank plc continued its dominance of Nigeria’s most qualitative digital financial service awards for the fourth year in a row, winning eight of the twelve honours available to Banks in the 2019 edition of the Central Bank of Nigeria (CBN) Electronic Payment Incentive Scheme (EPIS) Efficiency Awards.

The foremost African financial institution, renowned for its innovative products and services, won awards for efficiency and excellent service delivery in virtually every E-payment channel.

The CBN EPIS Efficiency Awards is organized to celebrate financial institutions, merchants and other stakeholders at the forefront of driving electronic payment in Nigeria. Now in its fourth year, the awards are based on objective analysis of all E-payments data collated by the Nigeria Inter-Bank Settlement System (NIBSS) over a full calendar year. With eight awards, GTBank took home two more honours than the six awards the Bank won the previous year and the highest number of awards presented to financial institutions, Fin-techs, merchants and other stakeholders in the Electronic Payment Incentive Scheme.

The eight awards won by GTBank include:

·         Best Customer Experience Award: for having the highest level of overall customer satisfaction rating in the delivery of electronic payment services to customers in2018.

·         Real-Time PaymentsTransaction Efficiency:for achieving the lowest failure rate in the processing of InstantPayments transactions in 2018.

·         Cashless Driver, USSD Channel Champion: for achieving the highest number of instant Payments transactions via the USSD channel in2018.

·         Cashless Driver, Point of Sale (POS)Transactions: for achieving the highest transaction count on Point of Sale(POS) Terminals in 2018.

·         Cashless Driver, Card Usageon Point of Sales (POS) Terminals: for authorizing the highest card transaction count on thePoint of Sale (POS) Central Terminal Management System in2018.

·         Direct Debit Driver Award: for processing the highest volume of successful debit mandates across all Payment Service Provider platforms in 2018.

·         E-Reference Operations Efficiency: for the Bank’s outstanding performance
in the processing of customers references received from other Banks for account opening purposes on the industry E-reference Platform in 2018.

·         ID Services Driver: for achieving the highest volume in the use of the BVN, e-Passport and NIN customer verification platforms in 2018.

Commenting on the Bank’s EPIS awards, the Managing Director and Chief Executive Officer of Guaranty Trust Bank plc, Mr Segun Agbaje, said; “We are proud to be recognised by the CBN EPIS Efficiency Awards for our efforts in driving excellence in electronic payments and providing customers with a superior banking experience across all digital touchpoints. These awards serve as extra motivation for us and we continue to find new and exciting ways to reduce our customers’ pain points and offer them benefits beyond banking.

He further stated that; “At GTBank we are passionate about building the bank of the future that connects our customers directly to all the everyday things that matter to them. That is why we are constantly leveraging the best of technology to, not only make financial services cheaper, more personal and readily accessible, but also to create amazing digital experiences in a way that adds real value to our customers’ lives.”

Guaranty Trust Bank plc is a foremost African Financial Institution with Total Assets of ₦3.287trillion and Shareholders’ Funds of ₦575.6Billion. With banking operations across 10 African countries and the United Kingdom, GTBank is regarded by industry watchers as one of the best run financial institutions in the countries in which it operates and serves as a role model in Africa’s financial service industry due to its bias for world-class corporate governance standards, excellent service delivery, and innovation.

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