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DBN Advocates Financial Inclusion, Hosts Regional MSME Summit in Kano

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By Tony Obiechina, Abuja 

The Development Bank of Nigeria Plc recently hosted its second Micro, Small, and Medium Scale Enterprises (MSMEs) summit in Kano in line with its mandate of providing access to finance to small businesses in Nigeria. 

The event which was themed on the role of Development Bank in Inclusive Financing had present, Alhaji Tajudeen Dantata, CEO of Dantata Foods as the keynote speaker, alongside panelists like Aisha Tofa, Founder of Startup Kano Hub; Ify Mogekwu of Ify’s Kitchen; Samirah Faruk, Founder Mercy Mission Global Ltd; Olusegun Adegun, Co-Founder, Rural farmers hub and Saratu Buhari, Founder, WeKasuwa.

The Managing Director/CEO, of Development Bank of Nigeria Plc, Tony Okpanachi, in his opening remarks highlighted the importance of the MSMEs to the socio-economic development of the region and the country.

 

According to him, “It has become imperative for us to pull resources together and channel collaborative efforts towards building the capacity of the MSMSE as a way revitalizing their operations to address the challenge of access to finance. This will guarantee their growth and boost the economic potentials of this critical sub-sector.” 

Commenting further, Okpanachi stated that: “The summit is one of DBN’s stakeholder engagement strategies aimed at creating awareness around our mandate of providing access to finance, capacity building, and partial credit guarantees to the MSMEs in Nigeria. This is important because they play a crucial role in accelerating economic growth through poverty alleviation, job, and wealth creation.” 

 “According to the Nigeria Bureau of Statistics, small and medium-scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP (Gross Domestic Product) in the last five years. With a total number of about 17.4 million, they account for about 50% of industrial jobs and nearly 90% of the manufacturing sector”. 

He further added that “though significant growth has been achieved in the MSME sector, there is still much to be done. Kano plays a major economic role in the northern business terrain and the challenges that MSMEs have to contend with are not different from those faced internationally. 

“They include access to finance, value chains, and markets. A PwC report in 2020 identified obtaining finance, finding customers, and infrastructure deficits as the most pressing problems of MSMEs in Nigeria. It is therefore pertinent for us as a Bank to champion the conversation on how MSMEs can win despite these challenges, by exposing ways through which MSMEs can benefit from our sustainable financial offerings”. 

He closed by saying that,“hosting this event in Kano is apt as it will help us better understand the financial constraints faced by MSMEs in the state.” He concluded with a commitment that, “DBN will continue to work towards building the capacity of MSMEs, eliminating the financing constraints faced by this sector of the economy and transforming them into instruments of positive and sustained change.”

 Kano State Governor, Abdullahi Umar Ganduje represented by the Head of Service, Alhaji Usman Bala Mohammed, shared his goodwill message at the summit, stating that the summit coincides with the Kano state development plan aimed at accelerating industrial growth which in turn will provide an enabling environment for commerce to thrive and for the economy to grow. He further urged entrepreneurs to take full advantage of the summit to seek solutions to their business challenges. 

In his keynote address, Alhaji Tajudeen Dantata, CEO of Dantata Foods said; “for us to discuss inclusive financing, we must recognize the important role of the MSMEs as key players in the Nigerian economy, the role of the DBN working in conjunction with their participating financial institutions in addressing the financial constraints faced by the MSMEs”. 

He went further to elaborate on the synergies that must exist in the financial and the MSME ecosystem as a key factor to addressing sustainable funding challenges faced by entrepreneurs with a call on DBN to take the bull by the horn by providing the much-needed financial inclusion leadership needed in the region by setting aside tailored made funding solutions that takes cognizance of the peculiarity of this part of the country. This he emphasized, will complement the efforts of the Central Bank of Nigeria. 

The summit was attended by Micro, Small, and Medium Enterprises in Kano and across the northwestern region as well as government agencies and stakeholders across sectors including traditional rulers.  

BUSINESS

My Vision to Simplify Payments in Nigeria with Innovative Solutions – Shema

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By Raphael Atuu,  Abuja
The Chief Executive Officer of  Wireless Pay,  Chonedu Shema Emmanuel has said  his vision is to simplify payments in Nigeria with innovative solutions through  his wireless banking platform.
Mr Sharma stated this during an interview with Daily Assets correspondent in his office in Abuja recently.


“I have launched one of Nigeria’s Leading payment platforms, ensuring seamless and efficient financial transactions online, the app is a subsidiary of Wired Banking Africa and collaborates with Asset Matrix MFB to deliver secure and efficient payment solutions.

“My company has  an app with key features like NFC tap-to-pay for softPOS, enabling merchants to effortlessly receive card payments, and an alternative USSD option for customers who prefer to pay with USSD codes.
Virtual accounts are also available for those who prefer transfers, and merchants can request physical cards for transactions with an impressive 99.9% uptime.”
Mr Shena added that his vision for the future of Wireless Pay includes sustained growth, expanded services, and becoming a trusted industry leader in payment processing, contributing to financial inclusion across different regions.
 While advising the public to take advantage of  wireless pay ‘s high  features, secure infrastructure, and global accessibility, to transact business, the company is set to capture the business market.
 The CEO maintained that the company is  registered as Wireless Pay Technologies Limited in Nigeria, the US, and the UK,  with a physical office in Abuja, and an entity under WOBILO Africa Limited, Wired Banking Africa, and Corporate Permit and Consultants Limited, further establishing its credibility and commitment to providing reliable payment solutions.
“It has  a collaboration with Asset Matrix MFB to ensure seamless integration and efficient services, the founder stressed that the platform offers transparent pricing, with card transactions capped at 0.5% up to 100 naira and USSD collections capped at 1.3% up to 1,300 naira. Withdrawals and bank transfers incur a flat fee ranging between 15-20 naira.”

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Afreximbank Closes $282m India-Focused Club Deal

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By Tony Obiechina, Abuja
The African Export-Import Bank (Afreximbank) has announced the successful completion of a first-of-its-kind India-focussed club deal for US$282.00 million.
Initiated for the exclusive participation of Indian lenders, and arranged by Bank of Africa UK PLC, the primary syndicated club deal saw participation from Indian lenders through their overseas branches and subsidiaries in the Dubai International Financial Centre in the United Arab Emirates, Singapore and Mauritius.


The facility, which was backed by six participating banks and financial institutions, including five that joined as first-time lenders to Afreximbank, helping the Bank achieve its objective of diversifying its funding sources, carries a three-year tenor.

At a commemorative event held in Dubai, U.A.E., to mark the conclusion of the deal, Haytham ElMaayergi, Executive Vice President at Afreximbank, said that the conclusion of the initiative represented a major milestone for the Bank as it sought to fulfil the key objectives of its funding programme.
Highlighting the importance of investing in, and for, Africa, Mr. ElMaayergi said: “this facility will help Afreximbank to continue to play a major role in the development of intra-African trade and trade between Africa and the rest of the world, particularly with India.
It is a testament to the rapid growth in Africa’s economic relationship with India and is evidence of Afreximbank’s growing ability to harness resources into Africa and to fund trade finance related investments that would have a positive impact on trade between Africa and India.”
Chandi Mwenebungu, Director and Group Treasurer of Afreximbank, reviewing the Bank’s vision for Africa, said that its funding objectives included achieving the diversification of its liability book by geography, investor type and tenor.
Also addressing guests at the event were Said Adren, CEO of Bank of Africa UK PLC, who thanked the lenders for their participation, and Zineb Tamtaoui, General Manager of Bank of Africa, Dubai Branch, who expressed appreciation for the opportunity to put together “a landmark deal that would be a stepping stone to many India-focused club deals going forward.”

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CBN Unveils New Minimum Capital Requirements For Banks

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Gives Them 24 months To Recapitalise

By Tony Obiechina, Abuja 

 Days after urging Nigerian banks to expedite action on the recapitalisation of their capital base in order to strengthen the financial system, the Central Bank of Nigeria (CBN) on Thursday, March 28, 2024, unveiled new minimum capital requirements for banks, pegging the minimum capital base for commercial banks with international authorisation at N500 Billion.

 

Confirming this in Abuja, on Thursday, March 28, 2024, the Acting Director, Corporate Communications Department, Mrs.

Hakama Sidi Ali said the new minimum capital base for commercial banks with national authorisation is now N200 Billion, while the new requirement for those with regional authorization is N50 Billion.
 

Mrs. Sidi Ali also disclosed that the new minimum capital for merchant banks would be N50 Billion, while the new requirements for non-interest banks with national and regional authorisations are N20 Billion and N10 Billion, respectively. 

A circular signed by the Director, Financial Policy and Regulation Department, Mr. Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks emphasized that all banks are required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026

According to the circular, the move, initially disclosed by the CBN Governor, Olayemi Cardoso, in his address to the Annual Bankers’ Dinner in November 2023, was to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.   

To enable them to meet the minimum capital requirements, the CBN urged banks to consider inject fresh equity capital through private placements, rights issues and/or offers for subscription; Mergers and Acquisitions (M&As); and/or upgrade or downgrade of license authorisation.

Furthermore, the circular disclosed that the minimum capital shall comprise paid-up capital and share premium only. 

It stressed that the new capital requirement shall not be based on the Shareholders’ Fund.

“Additional Tier 1 (AT1) Capital shall not be eligible for meeting the new requirement. Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio (CAR) requirement applicable to their license authorisation.  

“In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position,” it added.

The CBN circular said the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licenses submitted after April 1, 2024. 

It noted that the CBN would continue to process all pending applications for banking licenses for which a capital deposit had been made and/or an Approval-in-Principle (AIP) had been granted. 

However, it said that the promoters of such proposed banks would make up the difference between the capital deposited with the CBN and the new capital requirement no later than March 31, 2026.

Meanwhile, the CBN said all banks are required to submit an implementation plan (clearly indicating the chosen option(s) for meeting the new capital requirement and various activities involved with their timelines) no later than April 30, 2024. 

The CBN also disclosed that it would l monitor and ensure compliance with the new requirements within the specified timeline.  

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