Business News
Adeniyi: Unleashing Customs’ Potential Through Visionary Leadership
By Kayode Adebiyi
Since his appointment on June 19 as the Acting Comptroller-General of Customs (CGC) Nigeria Customs Service (NCS), Mr Adewale Adeniyi, the new Customs boss, has embarked on an exciting journey.
The journey is towards enhancing the efficiency of the NCS through local, international collaborations and cutting-edge technologies, such as AI-driven solutions, and innovative projects that are shaping the future of Customs practices in Nigeria.
The Service under Adeniyi is partnering with professionals and global experts all geared towards making informed decisions that will promote trade facilitation, security, and operational effectiveness.
His first 100 days in office is a voyage that has reinforced CGC Adewale’s unrelenting commitment to unlocking NCS’s full potential, hinged on his 3-policy thrust of Collaboration, Consultation and Innovation.
COLLABORATION
The NCS is tasked with three core mandates, which are: robust revenue generation, suppressing smuggling and trade facilitation.
Experts say that these mandates can be optimally achieved through deliberate, revolutionary, collaborative engagements with stakeholders, at home and abroad, besides leveraging the deployment of cutting-edge technology.
Upon his appointment, Adeniyi had outlined collaboration with international partners, local law enforcement agencies, government agencies (MDAs), the media and other countries’ customs administrations as critical to achieving NCS’ full potentials.
“As we embark on this new journey, we recognize the need for collaboration and partnerships.
“We value the relationships we have built with our Partner Government Agencies and the private sector. These collaborations have been vital to our adoption of technology as a tool to enhance revenue generation and streamline processes.
“We will strengthen these partnerships and engage with stakeholders through revitalised platforms.
“By promoting dialogue, we can resolve disputes and advance mutually beneficial solutions that lead to more efficient and effective service. The Nigeria Customs Service will continue to treat its esteemed stakeholders as partners who have a stake in our success,” he said.
NCS’ PARTNERSHIP WITH FOREIGN BODIES/COUNTRIES
Recently, the Service made collaborative engagements to operationalise the use of GEOINT to enhance the efficiency of NCS enforcement operations and contribute to overall efficiency.
The Acting CG has engaged in strategic discussions with partners such as the WCO, Japan International Cooperation Agency (JICA), and the Japan Customs Administration.
The discussions aim to garner support for establishing a customs Laboratory, a significant milestone in enhancing customs operations and trade facilitation across Nigeria.
The NCS Laboratory will provide comprehensive solutions to address challenges such as counterfeit goods, smuggling, and non-compliant imports, thereby bolstering revenue generation and ensuring the protection of public health and safety.
With its advanced analytical capabilities, the laboratory is expected to deliver precise identification, verification, and classification of goods, enabling efficient enforcement measures and informed decision-making.
It will foster an environment of trust and credibility within Nigeria’s trade ecosystem, marking a transformative step towards achieving seamless customs operations, trade competitiveness, and national economic growth in line with the vision of the President Tinubu Led Administration.
Adeniyi’s engagements extended to fruitful discussions with relevant experts and donors, focusing on crucial areas such as conducting a Time Release Study (TRS), implementing the Authorized Economic Operator (AEO) program, leadership, and management development.
These discussions underscore his commitment to comprehensive improvements and his inclination to adopt innovative solutions across various customs domains, ultimately enhancing operations.
On Tuesday, September 12, for instance, Adeniyi, expressed his commitment to synergise with Benin Republic to enhance trans-border security and regulate trade between the two countries.
Adeniyi said this when he received Senior Officers of Benin Customs, led by their Director-General, Alain Hinkati, at the Nigeria Customs Headquarters Abuja, in continuation of their two-day interactive session.
The session, which started on Monday, September 11 in Abuja, aimed at deepening the relationship between Nigeria and Benin while promoting their age-old bilateral trade ties.
Other areas that the partnership will address include enhancing the proper use of International Transit Guidelines to govern transit-bound goods and fees from Cotonou Port to Nigeria.
It also includes the integration of Nigeria into the Interconnected System for the Management of Goods in Transit
He said the treaty between the two Agencies “will prepare the way for an in-depth mechanism to harmonize the import prohibition lists of products banned by the two countries.
Meanwhile, a joint communiqué signed by Adeniyi and Bennese Customs, Alain Hinkati, said the meeting favoured the desire of the two countries’ presidents: Bola Tinubu and Patrice Talon to strengthen shared commitment to enhancing trade facilitation and promoting economic development.
Other areas that will benefit the countries are fostering closer ties to Nigeria and Benin and reactivating the joint committee for monitoring trade and transit relations.
Adeniyi has also affirmed partnership with the United Nations Human Settlements Programme, UN—Habitat, to Combat Smuggling.
The CGC stated this on Tuesday, September 19, when he received Ambassadors of the UN—Habitat, led by Dr. Raymond Edoh, at the Customs Headquarters, Abuja.
The CGC appreciated the collaborative effort between the Nigeria Customs Service and UN—Habitat.
He believes that the collaboration signifies a commitment to tackling smuggling and enhancing trade facilitation in the nation, setting the stage for a more prosperous future.
The CGC said: “What we’re trying to do is to raise a modern Customs Service through partnering with stakeholders to achieve our goals because we value partnership, and I am happy that you extended your hands of collaboration to work with us.”
On his part, the Director of UN—Habitat, appreciated President Bola Tinubu for reposing the responsibility of heading the Nigeria Customs Service on the Acting Comptroller-General, describing him as “a competent Customs officer who knows the terrain and masters the job.”
UN-Habitat is the United Nations entity responsible for developing urban policies and translating them into action to create sustainable cities and promote viable urban development and adequate shelter for all.
PARTNERSHIP AND COLLABORATION WITH MDAs, STATE GOVERNMENTS, MEDIA
The Nigeria Customs Service under the leadership of Adeniyi has also reinvigorated collaboration with the Federal Ministry of Transport to decongest Ports.
Adeniyi made this known when the Permanent Secretary, Ministry of Transportation, Magdalene Ajani, and her team paid a visit to the CGC at Customs Headquarters Abuja on July 6, 2023.
The visit was to reiterate commitments to partner with the Service. At the meeting, Adeniyi stressed the need to implement policies that create sufficient space at the ports.
The Permanent Secretary also assured the CGC that overtime cargo disposal committee was working assiduously to implement policies that would decongest the four major ports in the country.
“We are working in different dimensions, but the result will be prodigious, after launching sensitization exercise to stakeholders and members of the ports community about the process,” she said.
In a bid to synergise with security agencies in the country, Adeniyi on July 11, paid a courtesy visit to the National Security Adviser, Mallam Nuhu Ribadu, at his Office in Abuja to seek support on border security.
“The porous nature of the nation’s borders necessitates this visit to the NSA to fashion the best way to tackle the menace of smuggling, which has adverse effects on our economy and security,” the CGC said.
In a bid to strengthen the working relationship between the Nigeria Customs Service and the Media, Adeniyi met with Customs Area Controllers in Zone ‘A’ and the Guild of Editors in Lagos on July 16.
He said the Service has made remarkable progress in different areas over the years and will be soliciting the support, guidance and collaboration of the Media while at the helm of affairs of the Service.
“We will be open to collaborating with our partners in bringing more comprehensive reports to let Nigerians know what our challenges are, what the gaps are, what we can do to bridge those gaps to improve border security and, generally, Nigeria,” he said.
In his speech, the Guild’s President Mr Eze Anaba, congratulated the Customs boss on his appointment and assured them of their support while noting the importance of communication.
“You coming on board is refreshing development, and I am sure we will enjoy such interactions on behalf of my colleagues. I assure you that if you continue this way, the Nigeria Customs Service will have it good in the media,” he said.
In the same vein, the Ag. CGC also had dinner with Public Relations Officers in Zone A’, as well as maritime journalists in Lagos.
He assured them of an open-door policy and the need for cooperation and partnership in steering the affairs of the Service.
“I will open my doors to you; it’s going to be an open governance system; you will have the opportunity to contribute, to check the directions in which the Customs would go while I am in charge,” he said.
Emphasising on collaboration, the CGC on July 21 during his official visit to Seme and Badagry Environs, urged local communities to support Law Enforcement Agencies in enhancing border security
His first port of call was the Palace of the Akran of Badagry Kingdom, His Royal Majesty, De Wheno Aholu, Menu-Toyi I.
According to him, Customs Officers who have served in Badagry have enjoyed a long-standing relationship with the people of Badagry.
At Seme Area Command, where he was welcomed by a large crowd including Officers and Men of the Command, Hon. Joseph Gbenu, Chairman, Badagry West LCDA.
Others are representatives from Customs Krake, Republic of Benin, representatives from sister agencies, royal fathers, stakeholders, as well as community leaders.
Adeniyi called for synergy among sister agencies and community leaders saying: “we must draw strength from the complementarity of our operations and our traditional rulers are always there to guarantee the support from the communities we serve”.
“National security is the business of every citizen. It should not be for only security agencies, so as we make life easier for business, I want to charge you all to make life and the work of our security agencies easier,” he said.
Considering the fact that Lagos controls 70 to 75 percent of NCS’ total revenue collection, Adeniyi on July 25, paid a courtesy visit to Gov. Babajide Sanwo-Oluand pledged partnership with his government.
He assured the Governor of the Services’ commitment to operate within the framework of the law and support his drive to make Lagos a mega city.
He said, “We just secured presidential approval to undertake decongestion at our ports, using a combination of public auction and transferring some of the containers to the Government Warehouse in Ikorodu.
“I’ve visited all the facilities, and very soon, while working with all the stakeholders, we will be able to kick-start this process and create the space necessary inside the port and around the premises of the port,” he added.
Sanwo-Olu also pledged to provide a good working environment for businesses to thrive. He hinted that approval for a Badagry Port had already been secured.
“I also need to inform you that there’s an approval for a Badagry Port.
“The whole idea is to build strategic infrastructure for our citizens; Lekki is on the eastern part, Badagry is on the western part so that we can decongest Apapa and Tin-can that have stretched their capacity,” he said.
In what seems like one of the most productive collaborations towards enhancing national security and curbing revenue loss, the Federal Road Safety Corps (FRSC) and Nigeria Customs Service (NCS) commenced an intensive vehicle database integration of the two government agencies.
The collaboration was effected during Adeniyi’s official visit to the Corps Marshal, FRSC, Dauda Biu, at the Abuja headquarters of the Corps.
Speaking during the visit, the CGC emphasised NCS’s renewed commitment towards partnership with the Corps in human resource development, information and communication technology, and sports.
He said effective consolidation of existing vehicle information in the National Vehicle Identification Scheme database domiciled with the FRSC and vehicle database of the NCS will curb vehicle smuggling, improve revenue generation and enhance national security.
Responding, the Corps Marshal, applauded the initiative, stating that the handshake and data sharing would strengthen the bond between the two agencies and positively impact the fight against vehicle smuggling.
Biu emphasised that the collaboration would also enhance ease of doing business as it will make tracking vehicles without customs duty certificates very easy for the Corps at the point of registration.
In further efforts to deepen interagency synergy with sister security agencies, on Thursday, August 3 Adeniyi visited the Ag. Inspector-General of Police, Kayode Egbetokun, at Force Headquarters, Abuja.
The visit sought inter-agencies’ cooperation and collaboration to fast-track sustainable working relationships between the Nigeria Customs Service and Nigeria Police Force for adequate security of lives and properties.
Addressing the leadership of the Force, he assured Egbetokun of Customs willingness to learn from the Police in investigation and other operations through capacity-building programmes.
“Criminal activities are inter-connected, thus the need for the two security agencies to collaborate to mitigate the menace of smuggling.
“Doing so will help the Nigeria Customs Service to generate revenue for the nation. I will therefore request to build a strong relationship between the Nigeria Customs Service and the Nigeria Police Force,” he said.
Adeniyi said the major issues that bothered the two organisations could be mitigated through sharing intelligence to help achieve a common goal in the fight against criminals.
Egbetokun described the CGC’s visit as timely, affirming his readiness to establish a solid working bond with Customs.
Just after the decision by Tinubu to shut down the borders, the Customs boss visited the Gov. Dikko Radda of Katsina State to solicit cooperation of border communities.
He emphasised that while implementing the closure of the Jibia border, the Service would also devote energy to sensitise members of the communities on the reason behind the decision.
Responding, Katsina State Deputy Governor, Farouk Lawal, who represented Radda assured him of the government’s unflinching support.
The CGC pledged renewed collaboration with Yobe to ensure the state continued to benefit from the Service. He also strengthened Customs Community Relations in Oyo State, while charging the state’s indigenes to embrace locally made goods.
Customs also synergized with Borno State Government to re-establish Cross-border Trade in the Northeastern part of Nigeria.
Speaking on enhancing community relations, Adeniyi said: “moving forward, we will need your support to engage with members of the border communities in Borno.
“This is especially as the insurgency has been degraded. We will build on the good relationship that we have and leverage on it to re-establish a good relationship with Cameroon and, of course, the Southern part of Chad.”
He has also expressed the readiness of his management team to collaborate with the National Center for the Control of Small Arms and Light Weapons (NCCSALW) in the fight against the trafficking of Small Arms and Light Weapons.
It would be recalled that the Service had in the second week of August 2023, intercepted over 1000 live ammunition concealed in 203 bags of imported rice in Abeokuta.
The Customs boss, who appreciated the National Coordinator for leading his team to visit the Service’s Headquarters to knot ties with him, also emphasized the need to venture more into intelligence and data sharing.
INNOVATION
As part of the innovation strategy in reviewing the anti-smuggling operations of the Nigeria Customs Service, Adeniyi on July 17 dissolved the Strike Force Team to strengthen the Federal Operations Unit Arm of the Service.
He said meant to also allow for more accountability and reduce multiple checkpoints and ordered all arms, records, and operational vehicles to be returned to the FOUs.
He also on August 7 inspected the 100 Hectares of land proposed for the Federal Operations Unit A, Government Warehouse and Customs Training School, close to the Ogun Agro International Airport Project site.
In asserting the relevance and authority of the Zonal Headquarter, Adeniyi said the office would be relocated and given a face-lift after 48 years, while on officers’ welfare, he assured that some gaps in the area of insurance would be bridged and more accommodation would be provided for the officers.
Similarly following his tour to the Kaduna Area Comman he paid a visit to Customs Primary School, Barnawa, to assess the condition of the facility with the aim of renovating it. This aligns with his efforts to promote education through Customs’ Social Programme to the society.
Speaking to the school’s Assistant Headmaster, Adeshina Fatai, Adeniyi vowed to address both the short, medium and long-term needs of the school to create conducive teaching and learning atmosphere.
According to him, the Nigeria Customs Service, under his leadership, will do the best to raise the spirit of the school to educate the wards of the residents properly.
The Ag. CGC, on August 14, extended a hand of fellowship to Dorian Home in Akure, Ondo State, an Orphanage home for Charity and Social Development.
According to him, the service has a responsibility to support and assist communities where they operate and carry out their mandates. Dorian Home has the structure, commitment and passion to drive its objectives.
He said the home has a capacity for almost one thousand kids, as there will be a need to feed, clothe and administer the proper medication to them. He assured of the assistance of the Service to the home.
The Customs CG also pledged his support to establish Customs primary and secondary schools nationwide.
He spoke while receiving the Customs Officers Wives Association (COWA) delegation led by it National President, Mrs. Kikelomo Adewale Adeniyi.
On September 7 the CGC performed the groundbreaking ceremony for the construction of Customs Service Zone B Headquarters.
The extraordinary edifice on 25 hectares of land situated in the Mando Area of Kaduna State is part of the CGC’s unalloyed commitment to improve the welfare and efficiency of the Service.
Speaking at the ceremony, Adeniyi described the initiative as a magnificent project that would pave the way for establishing a solid and efficient infrastructure to drive the activities of the Service.
In a significant development on the facilitation of trade, Adeniyi took a decisive action in response to selected Authorized Dealer Banks failing to meet Service-Level Agreements (SLAs) related to Customs Duty and statutory charge remittances.
This decision followed a thorough audit and due process, aligning with the NCS’s commitment to upholding transparency, accountability, and efficiency in revenue collection.
The primary objective is to ensure the accurate and timely remittance of Customs duties and other essential funds for national development.
In spite of the deactivation of these banks, the CGC implemented measures to minimise disruptions for importers and stakeholders.
He assured the trading community that all pending assessments will undergo clearance processes in line with international best practices.
Importers who previously relied on the deactivated banks for duty payments were advised to utilise other Authorized Dealer Banks that comply with NCS regulations.
Stakeholders encountering challenges with a particular bank were also encouraged to use alternatives that function appropriately.
The deactivated banks will have the opportunity to be reactivated once they meet all regulatory requirements and settle outstanding remittances.
Collaborative efforts with financial regulators and stakeholders are underway to ensure the efficiency and integrity of the Customs Duty Collection system.
The most recent of his strategy is the organisational reshufflement. To this end, the Acting CGC made strategic appointments and announced significant redeployments within the Customs department.
In a press statement issued September 6 the Chief Superintendent of Customs, Abdullahi Maiwada, the National Public Relations officer, stated that the appointments and redeployments were aimed at ensuring operational efficiency.
Accordingly, Comptrollers Florence Nanu Ogar-Modey and Queen Ogbudu were appointed Acting Assistant Comptroller Generals, Training and Doctrine Command, (TRADOC) and Zonal Coordinator Zone B, respectively.
Some of the Comptrollers redeployed to various Customs formations, include; Compt. Jaiyeoba Jide from Oyo/Osun Area Command to Apapa Area Command, and Compt. Dera Nnadi from Seme to Tin-Can Island Port.
Also Compt. Timi Bomodi from KLT to Seme, Compt. Ahmed Abe from PCA Zone ‘C’ to Kaduna Area Command and Compt. Babandede Mohammad from Lilypond Export Command to Lagos Free Trade Zone Command.
In addition to the redeployments, Compt. Dauda Chana was redeployed from Investigation Headquarters to Kano/Jigawa Area Command, Compt. Martina Tilleygyado from Non-Intrusive Inspection to KLT Area Command.
Similarly, Compt. Oloyode Adekunle from Tin-Can Island Port to Import &/Export Headquarters while Compt. Zanna Chiroma will be leaving Import & Export for PCA Zone ‘C, among many others.
The Customs boss charged them to put more efforts into achieving the service’s core mandates of Revenue Generation, Suppression of Smuggling, and Trade Facilitation.
THE ACTING CGC’s CONSULTATION STRATEGIES
Adeniyi has made significant negotiations with relevant agencies organisations – both private, corporate and multinational to arrive at the best solutions and practices that soothe the Nigeria Customs Service.
Recall that he was attending the Policy Commission and Council meetings of the World Customs Organisation (WCO) in Brussels, Belgium, on the announcement of his appointment in June 2023).
The Ag. CGC’s abilities in leveraging global platforms and engagement in topical debates within the global Customs community cannot be overemphasised.
Adeniyi has held strategic alliances and talks with partners to promote good relationships and service efficiency. These collaborations have been vital to the Service’s adoption of technology to enhance revenue generation.
He has often underscored the need to promote dialogue across all levels, which would resolve disputes and advance mutually beneficial solutions for efficient and effective service.
According to him, the Nigeria Customs Service will continually treat its esteemed stakeholders as partners who have a stake in the Service’s success.
Furthermore, Adeniyi on Wednesday, 20th September 2023, reiterated that the Service would maintain its unwavering position of consulting relevant stakeholders to enable its administration to succeed.
He made this known when he received members of the Customs Consultative Committee led by the Chairman of the Council, Aare Hakeem Olanrewaju, at the Customs Headquarters, Abuja, along with newly elected executive members of the Association of Nigeria Licensed Customs Agents.
He urged them to consider their peculiar privilege in sustaining peace amongst them, which, according to him, will encourage the Service to take them as vital partners.
“I want to use this opportunity to rekindle the good understanding and peace between yourselves so that we will be able to synergize in eradicating threats against revenue collection and national security.”
He said the Nigeria Customs Service would henceforth share the challenge of consolidating the recent victory with the association – which will clear the way for innovations in the automation of procedures and benefit official economic operators.
He told the new leaders of ANLCA that the Nigeria Customs Service was willing to collaborate with them to ensure the successful facilitation of trade.
“We are going to hold a meeting with Customs Agents to ensure that we bring the required sanity into our operations”, he said.
Responding, Mr Hakeem Olanrewaju, the Chairman, Customs Consultative Committee who led the delegation, said the visit was to present newly-lected National Executive Council of ANLCA to Adeniyi.
Olanrewaju congratulated the Ag. CGC, on his appointment and assured him that the Association had been restored after a long time of fracas.
“With the intervention of Ag. Comptroller General of Customs, the Association of Nigeria Licensed Customs Agents has embraced a collaborative peace”, he said.
NCS Training College: The Passing Out of Basic Course I/2023 Cadets
Among some of the activities marking his 100 days, Adeniyi attended the Passing Out Parade of Course 1/2023 at the Nigeria Customs Service Training College in Ikeja, Lagos, on September 22.
He charged the Basic Course I/2023 Cadets to uphold the highest level of integrity and professionalism while discharging their lawful duties.
The Ag. CGC congratulated the cadets on their successful completion of training and welcomed them into the service.
He expressed hope for a better service, equipped them with knowledge and skills, and urged them to make a meaningful difference in the nation.
He emphasized the importance of discipline, good conduct, and the highest level of integrity in their actions, reminding them that they represented excellence and the Nigeria Customs Service.
The CGC also announced that there would be a significant enhancement to the Service’s training and development framework.
He said officers within the superintendent cadre – starting from those graduating that day, would undergo a mandatory refresher course every five years.
The Deputy Governor of Gombe State, Manasseh Jatau – a retired Deputy Comptroller General of Customs, Senior Officers of the service, and representatives of sister agencies attended the occasion alongside the Training College Commandant, Deputy Comptroller Haniel Hadisson.
The Commandant advised the cadets to maintain the high standard of discipline they experienced during their compulsory six-month training while executing their duties.
He expressed gratitude for the support provided by the Acting Comptroller-General and his team.
As a reward for excellence, awards were presented to outstanding cadets who had distinguished themselves through dedication and hard work. And in total, 81 Cadets successfully completed their training and passed out of the Training College after six months of rigorous preparation.
Adeniyi’s Strategies for Physical and Mental Fitness
The Acting Comptroller-General also recently led Officers and men of the Service, including members of the management team and representatives of military and paramilitary institutions, to a marathon route march – as part of his tactics to keep his men in a state of rejuvenated physical and mental fitness.
The trekking exercise, which had a theme “Work-Life Balance: Balancing For A Better Tomorrow”, commenced in the early hours of September 23, from Customs Headquarters Wuse Zone 3 to the newly-built Customs House in Maitama Area, Abuja.
This is seen as one of the Ag. CGC’s strategic approaches to enhance the agility of the officers and men of the Nigeria Customs Service.
Speaking after the route march, Adeniyi said the exercise aimed at keeping officers physically and mentally fit to face their duties effectively.
“We have gathered here to launch a transformative initiative that reflects the core values of our beloved Service – the Work-Life Balance Initiative”, he said.
He said that the physical exercise, however, attests to the Customs’ commitment to consolidate key areas of national development, binding its ties with stakeholders and embracing technological innovations.
“As officers and men, we come under lots of pressure to fulfil various obligations, and most of the time, these pressures come from our workplaces – emanating from the nature of our tasks, which are usually physically and mentally demanding; thus, the exercise will help reduce such pressure for us and enhance our productivity at work,” he said.
The Ag. CGC said the Nigeria Customs Service had, over the past 15 years, established 32 clinics and medical centres nationwide to carter for officers’ health.
“As we embark on this journey, it is vital to understand the essence of this initiative and why we need to flag it off”, he said.
The Customs Chief also said the exercise would facilitate the unity and love between Customs Officers across the federation.
“Participating in this brisk walking exercise fosters friendship and unity and a sense of shared purpose amongst us,” he said.
The brisk walking exercise was attended by Deputy Comptroller-Generals of Customs in charge of different Units, Assistant Comptroller-Generals, and all Comptrollers down to Customs Assistant III.
Other participants from sister agencies who graced the ‘Walk-Life Balance’ exercise were from the Ministry of Investment, Trade and Industry, Nigerian Correctional Centre, Immigration Service, National Drug Law Enforcement Agency, and Nigeria Army.
Having embarked on a journey of consolidation and collaboration focused on reforms, restructuring, and innovation, Adeniyi has most importantly shown that he is fully committed to the successful implementation of the new Customs Act 2023.
He has continued to work diligently to familiarize the Officers and stakeholders with its provisions, ensuring its effective application across all the Service operations.
Through his continuous engagements with stakeholders across different sectors, he has not relented in creating awareness and understanding of the Customs Act and the importance of successfully achieving the Service’s shared goals.
He sees this as the collective effort personnel, stakeholders and the public while emphasising the need to embrace compliance and collaboration.
Adenyi’s administration has shown its commitment to adopting a bottom-up approach, where the needs of the nation take precedence over everything else.
He has begun prioritising efficiency in service delivery as the bedrock of trade facilitation and revenue generation.
His journey has shown that encumbrances shall no longer impede trade as he has begun to dismantle obstacles and foster a new culture of consultations, compliance, partnership, collaboration and innovation at all strata of the Service. (NANFeatures)
Business News
Adaora Umeoji Showcases Zenith Bank’s Strong Financial Performance, Targets Over N1 Trillion Profit In 2024
Zenith Bank Plc, Nigeria’s leading financial institution, held its Capital Markets Day last week to showcase the bank’s inherent values as it embarks on its recapitalisation journey. The event, which brought together key market players, focused on the bank’s growth trajectory, strategic objectives, market performance, and consistent, robust dividend payout over the years.
It also provided an opportunity for the bank to inform capital market stakeholders about its robust risk management culture, adherence to regulations, capital adequacy, and maintenance of low non-performing loan levels.Addressing capital market stakeholders, investors, and analysts at the event in Lagos, the Group Managing Director/Chief Executive Officer, Dame Dr Adaora Umeoji, highlighted the financial institution’s tier-1 capital of N1.
8 trillion, shareholders’ funds of N2.3 trillion, market capitalisation of N1.3 trillion, a profit before tax of N796 billion, and a dividend of N4 per share for the year ended December 2023.Providing guidance for 2024, she noted that, given the trend of the bank’s performance and having achieved a profit before tax of N796 billion in 2023 and N320 billion in the first quarter of 2024, the bank is on track to deliver over N1 trillion in profit before tax in 2024. She expressed confidence that, with the quality of the board and management and a strong corporate culture, the bank is well-positioned to deliver superior value to investors and other stakeholders and to navigate the recapitalisation process successfully. She also disclosed some of the bank’s future plans, which include driving financial inclusion, expanding corporate and retail banking through technology and other state-of-the-art digital platforms, and establishing a fintech subsidiary, ZenPay, to drive profitability. Additionally, the bank intends to expand to France and other Francophone African countries.
Dr Umeoji explained, “For us at Zenith, we won’t be left out. We are planning to go to the market to raise capital, and as it stands, Zenith Bank has the least amount of capital to raise. We are looking to raise N230 billion because we are already at N270.7 billion. That is the least capital to raise among our peers. We believe that Zenith Bank has what it takes. We have the capacity, the network, the balance sheet, the human capital, and the track record to achieve that. We are planning for the future, and the technology we have now is the best in the entire industry. It will help us to have a seamless process and integrate.”
Also speaking, the Chief Financial Officer/General Manager, Dr Mukhtar Adam, pointed out that in the last five years, the bank’s Compound Annual Growth Rate (CAGR) in revenue has grown by over 27 per cent. “This continues to grow year-on-year. Within this period, at some point, Nigeria went into recession, but we forged ahead, worked very hard, and continued to deliver growth. Within the last five years, our profit before tax has also grown cumulatively by about 28 per cent. This is a market where, at some point, government instruments – treasury bills – were paying one per cent, two per cent, three per cent. But we forged ahead to grow the numbers and provide stable returns of at least 28 per cent.”
Zenith Bank recently emerged as the Best Commercial Bank, Nigeria, in the World Finance Banking Awards 2024, retaining the award for the fourth consecutive year. The bank was also named Best Corporate Governance, Nigeria, for the third year running in the World Finance Corporate Governance Awards 2024. The awards, published in the Summer 2024 issue of World Finance Magazine, recognise the bank’s robust financial performance, superior customer service, sustainability initiatives, and corporate governance practices.
Commenting on the dual honours, Dr. Umeoji said, “These awards highlight our steadfast dedication to excellence, adherence to global best practices, and our persistent effort to deliver superior value to all stakeholders through innovative products and services. Receiving these awards consecutively for multiple years signifies the commitment of our staff, the loyalty of our customers, and the support of our shareholders. We remain devoted to setting industry benchmarks and driving excellence across all aspects of our operations.”
Dr. Umeoji also expressed delight at the recognition and dedicated the awards to the Founder and Chairman, Dr. Jim Ovia, CFR, for his impactful leadership in establishing a robust and flourishing institution. She also expressed gratitude to the board for their vision and insight, the staff for their unwavering dedication, and the bank’s customers for choosing Zenith as their preferred bank. World Finance is a leading international magazine providing comprehensive coverage and analysis of the financial industry, international business, and the global economy.
In its audited results for the year ended December 31, 2023, Zenith Bank achieved a remarkable triple-digit growth of 125 per cent in gross earnings, from N945.6 billion reported in 2022 to N2.132 trillion in 2023. The impressive growth in gross earnings resulted in a year-on-year increase of 180 per cent in profit before tax (PBT), from N284.7 billion in 2022 to N796 billion in 2023, while profit after tax (PAT) also recorded triple-digit growth of 202 per cent, from N223.9 billion to N676.9 billion for the period ended December 31, 2023.
The increase in gross earnings was primarily due to growth in interest and non-interest income. Specifically, its interest income increased by 112 per cent, from N540 billion in 2022 to N1.1 trillion in 2023, while non-interest income grew by 141 per cent, from N381 billion to N918.9 billion in the same period. The rise in interest income was attributed to the growth in the size of risk assets and their effective repricing, alongside the increase in yield of other interest-bearing instruments over the year. Growth in non-interest income was driven by significant trading gains and an increase in gains from the revaluation of foreign currencies.
Zenith Bank’s cost of funds also grew from 1.9 per cent in 2022 to three per cent in 2023 due to the high interest rate environment, while interest expense increased by 135 per cent, from N173.5 billion in 2022 to N408.5 billion in 2023. Notwithstanding the 32 per cent growth in operating expenses in 2023, the Group’s cost-to-income ratio improved significantly from 54.4 per cent in 2022 to 36.1 per cent in 2023 due to improved top-line performance. Return on Average Equity (ROAE) increased by 118 per cent, from 16.8 per cent in 2022 to 36.6 per cent in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns. Return on Average Assets (ROAA) also grew by 95 per cent, from 2.1 per cent to 4.1 per cent in the same period.
Zenith Bank was established in May 1990 and commenced operations in July of the same year as a commercial bank. The bank became a public limited company on June 17, 2004, and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004, following a highly successful Initial Public Offering (IPO). In 2013, the bank listed $850 million worth of its shares at $6.80 each on the London Stock Exchange (LSE). Headquartered in Lagos, Nigeria, Zenith Bank Plc has more than 400 branches and business offices in prime commercial centres across all states of the federation and the Federal Capital Territory (FCT).
Zenith Bank Plc, founded by Jim Ovia, CFR, in 1990, has since grown to become one of the leading financial institutions in Africa. The underlying philosophy is for the bank to remain a customer-centric institution with a clear understanding of its market and environment. Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards. These latest accolades follow several recognitions, including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the 14th consecutive year in the 2023 Top 1000 World Banks Ranking, published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most Sustainable Bank, Nigeria, in the International Banker 2024 Banking Awards, among several others.
Zenith Bank Plc has blazed the trail in digital banking in Nigeria, achieving several firsts in the deployment of Information and Communication Technology (ICT) infrastructure to create innovative products that meet the needs of its customers. The bank is a leader in the deployment of various channels of banking technology, and the Zenith brand has become synonymous with state-of-the-art technologies in banking. Driven by a culture of excellence and strict adherence to global best practices, the bank has combined vision, skilful banking expertise, and cutting-edge technology to create products and services that anticipate and meet customers’ expectations, enable businesses to thrive, and grow wealth for customers.
Business News
AMCON Records Over N108bn in 2023 Financial Year
By Tony Obiechina, Abuja
Amidst challenging macroeconomic conditions coupled with economic headwinds, Asset Management Corporation of Nigeria (AMCON) achieved a remarkable triple-digit growth of 202% from NGN34.730 billion in the previous year to NGN108.433 billion in 2023.
This was contained in the a statement made available by Jude Nwauzor, Head of Corporate Affairs Department in Abuja on Wednesday.
A breakdown of this impressive achievement showed that AMCON, which is currently led by Gbenga Alade as Managing Director/Chief Executive Officer achieved a Year-on-Year (YoY) growth in profit of 212% from N34.730 billion in the financial year, which ended on December 31, 2022, to N108.
433 billion in the period ended December 31, 2023.The report disclosed that fair valuation gains on Eligible Bank Assets (EBAs) increased to N40.9 billion in 2023 from a loss of N187.9 billion in 2022. Equity portfolio recorded 82% growth in 2023 amounting to N43 billion as compared with N7.9 billion in 2022. The significant trading gains is as result of an improved performance in the stock market.
The Corporation achieved a favourable reduction in total liabilities, from N6.282 trillion in 2022 to N5.739 trillion in 2023, primarily due to repayments of the N500 billion Central Bank of Nigeria (CBN) loan. It also recorded 89% achievement of its revenue budget in 2023 as the total recovery in 2023 stood at N125.2 billion.
A breakdown of the recovery showed that AMCON achieved N81.65 billion in collections from various obligors, N17.8 billion from share sales, N15.5billion reinvestment income, N6 billion as proceed from sale of properties, N3.8 billion dividend income and N0.5 billion from rental income despite the country’s challenging economic environment, occasioned by the removal of subsidy and floatation of the naira.
The executive management said AMCON is strategically positioned to continue with the positive trajectory achieved in the year 2023, with special emphasis on improved recoveries and efficient realization of value from disposal of forfeited assets in furtherance of the Corporation’s mandate.
The summary of the AMCON’s Financial highlight is presented below:
*Profit for the year Dec 31, 2022 – N34,730bn
*Profit for the year Dec 31, 2023 – N108,433bn
*Total comprehensive income for the year, net of tax – (2023) N106,385bn
N30,963bn (2022)
Total Assets
N1,076,144bn (2023)
N1,513,304bn (2022).
Recapitalization ‘ll Create Stronger, more Resilient Banks – Cardoso
By Tony Obiechina, Abuja
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has said that the Bank will continue to collaborate with relevant financial institutions, the fiscal authorities and the National Assembly to ensure a successful recapitalisation exercise, including providing adequate protection of property rights and interests of minority shareholders.
Mr. Cardoso made the pledge in London on while speaking to stakeholders on “The Impact of the Recapitalization of Nigerian Banks” at the UK-Nigerian Chamber of Commerce.
The Governor, represented by the Bank’s Deputy Governor, Financial Systems Stability, Mr. Phillip Ikeazor, emphasised the event’s significance and restated the CBN’s commitment to fostering stronger, healthier, and more resilient banks capable of withstanding economic shocks and supporting the Government’s goal of achieving a GDP of US$1 trillion by 2030.
According to him, the anticipated impact of the recapitalisation programme will include an increase in banks’ lending capacity, a boost in the volume of foreign direct investment (FDI), and an increase in foreign exchange liquidity.
He said the exercise would also contribute to GDP growth, better risk management, improved credit ratings, a diversified ownership base, better governance and strategic decisions, and increased market volume and value, leading to a more vibrant equity market.
“With the recapitalisation programme, our goal is to trigger the emergence of stronger, healthier and more resilient banks,” he added.
He noted that several factors influenced the new minimum capital requirements, including macroeconomic conditions, stress test outcomes, and the need for improved risk management.
“We will rigorously enforce our “fit and proper criteria” for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso assured.
He noted the significant opportunity it presents to engage investors, policymakers, and technocrats on the critical issue of bank recapitalisation in Nigeria.
Mr Cardoso explained that since assuming of office in October 2023, his priorities at the CBN have included achieving monetary and price stability, maintaining a stable exchange rate, controlling inflation, and creating an enabling environment for businesses.
He explained that the recapitalisation directive excluded retained earnings from the minimum capital requirement to simplify capital calculations and enhance transparency. He explained that the decision, rooted in the BOFIA Act 2020, aligns with international standards like Basel III and emphasises core capital elements to improve financial stability.
Reflecting on the successful 2004/5 Banking Sector Reforms, which consolidated the industry, increased capital bases, and boosted resilience against the global financial crisis, the Governor assured that the current recapitalisation initiative aims to build on these achievements.