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Ambitious SunTrust Bank Commences Operations

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SunTrust Bank

The management of SunTrust Bank Limited, one of the recently licensed commercial banks in the country officially opened its doors to customers Monday. The bank has a regional banking licence.

Speaking at the opening ceremony which attracted top government officials, politicians as well as traditional rulers in Lagos yesterday, the Chief Executive Officer of the bank, Mr. Muhammad Jibrin, said the bank was the first fresh banking licence to be issued by the Central Bank of Nigeria (CBN) since 2001.

Jibrin said SunTrust Bank started about six years ago as a mortgage bank, adding that the board and management were able to grow its balance to a reasonable size before they decided to pursue a commercial banking licence from the CBN which they got in September last year.

He said the bank would be a financial technology institution that would focus electronic channels by offering telephone, mobile and internet banking services.

“Banking is no longer where you go, it is what people do. Therefore, the only thing that can stand the future is no longer physical branches, but banking services that would be driven by technology. “So, most customers of tomorrow would no longer be the customers that they want to go to the banking hall. So, you need to be able to position the institution to respond positively to the needs and expectations of customers of tomorrow. That is at the heart of our own vision and strategy as tomorrow’s bank today,” Jibrin said.

In his presentation, the Chairman of the bank, Mr. Charles Onyema Ugboko, said establishing a bank amid the present economic situation showed that the board and management are committed to the growth of the Nigerian economy.

In his goodwill message, the Oba of Lagos, Oba Rilwanu Akiolu, urged the management of the bank to remain focused, even as he appealed to them to employ at least 30 per cent of Lagos indigenes.

Also, the Obi of Onitsha, Igwe Alfred Nnaemeka Achebe, pointed out that going into business at this time when “everybody else is trying to get out of business, takes a lot of courage, and to go particularly into banking takes triple courage.

“But such occasion throws up opportunities to those who can see far and beyond. It is the courage of the founders of this bank that I want to applaud. If you are just coming in to be another bank, then it is not worth coming in.

“So, you have to come in as a bank with a difference. You must change the game. Service and quality should be your focus. I personally believe that the cost level of banks is very high, so if you can bring your own down, you will win,” the traditional ruler said.

On his part, the Lagos branch controller of CBN, Mr. J. Iyari, who represented the CBN Governor, Mr. Godwin Emefiele, urged the board and management of the bank to keep to the rules and be good corporate citizen.

“The bank should try to create market niche, be special and be the bank of choice. I assure you that the CBN will continue to provide a level playing field for all operators in the financial services industry to support the growth and development of our country,” he said.

Also, the President of the Dangote Group, Alhaji Aliko Dangote, who was at the ceremony, commended the bank for taking such as abold step.

“As we speak here today, it might be easy for us to be overwhelmed by many challenges we face as business people. The lack of growth in the major economies of the world, the declining commodity prices in general, the weakness in our economy and the difficulty faced by the banking sector all over the world.”

“But throughout my business life, I have learnt that problems and difficulties are also great opportunities. People can make quite a lot out of difficulties and I think our difficulties in Nigeria today should be turned to opportunities. In this period, you need the courage to attack when others are retreating.

“As you know, in Lagos, we have many projects that we are doing and we are not retreating. We have continued to invest in this downturn, with expectation that our investment would actually pay a handsome reward as the cycle turns. I congratulate you for taking this step when banks all over the world are facing multiple headwinds. I am excited that their courage would be rewarded in the near future,” Dangote added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

No Plan to Increase Fuel Price; Says FG

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NNPC - Investors King

The Federal Government has stated that it has no plan to increase fuel price during the yuletide period.

This assurance is coming amid the nationwide fuel scarcity which has pushed the price of petrol above N250 in many retail stations.

Investors King learnt that fuel is being held for N250 per litre in Abuja and several other cities across the country while black marketers are charging between N400 and N450 per litre.

The scarcity and the high price of fuel are however becoming unbearable for many Nigerians, especially those who have reasons to embark on business travel for the December festivals.

According to the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, most of the association members, who owned the bulk of the filling stations across the country, were now subjected to purchasing PMS at about N220/litre, which was why many outlets currently dispensed at about N250/litre and above.

He noted that the cost of the commodity has been on the rise due to its unavailability and other concerns in the sector. 

He added that the price of fuel could be sold from N350/litre to N400/litre before the end of the year. 

Meanwhile, a number of senior officials at the NNPC had stated that the subsidy was becoming too burdensome on the national oil company, as this was another reason for the scarcity of PMS.

According to a source who is familiar with the development as reported by Punch News, “How can we continue to import 60 million litres of petrol daily and keep subsidising it, while millions of litres are either diverted or cannot be accounted for? The burden is too much, as you rightly captured in that story”. 

Investors King understands that NNPC is the sole importer of petroleum into the country and it pays billions of naira every month to subsidise the product to N147 per litre. 

Reuters News reported that in August 2022, NNPC paid more than $1 billion as fuel subsidy while the federal government earmarked N3.6 trillion as fuel subsidy in the 2023 budget proposal. 

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Fuel Scarcity: NNPC Declares 2billion Liters in Stock, Blames Scarcity on Road Construction

NNPC Claimed it as 2 billion litres of fuel despite scarcity

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Petrol - Investors King

The Nigerian National Petroleum Company (NNPC) has blamed the recent fuel scarcity on road construction around Apapa, noting that the corporation has about 2 billion litres of fuel in stock. 

According to a statement issued by NNPC Executive Vice President, Downstream, Mr Adeyemi Adetunji, the Nigeria National Petroleum Company has about 2 billion litres of fuel which can last the country conveniently for more than 30 days. 

The Executive Vice President further blamed the queues on the road construction around Apapa axis which has slowed down the movement of oil trucks to several parts of the country. 

“The recent queues in Lagos are largely due to ongoing road infrastructure projects around Apapa and access road challenges in Lagos” he said. 

He however noted that more filling stations should have Premium Motor Spirit (PMS) otherwise known as petrol with the ease in gridlock along the apapa axis. 

“The gridlock is easing out and NNPC Ltd has programmed vessels and trucks to unconstrained depots and massive load outs from depots to states are closely monitored,” he said.

Investors King gathered that several states including Abuja have been impacted by the supply chain difficulty caused by the construction around Apapa. 

The scarcity of fuel has therefore led to the hike in price. In most places across the country, fuel is sold as high as N250 per litre. Several fuel stations are already taking advantage of the situation coupled with the increase in the movement of people and goods owing to the December festivals.

Speaking further, Adeyemi noted that the situation will soon be back to normalcy as NNPC is taking measures to address the situation. 

“We want to reassure Nigerians that NNPC has sufficient products and we significantly increased product loading in selected depots and extended hours at strategic stations to ensure sufficiency nationwide.

“We are also working with industry stakeholders to ensure normalcy is returned as soon as possible,” he concluded. 

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Economy

Global Growth to Drop Below 2% in 2023, Says Citi

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GDP Growth- Investors King

Citigroup on Wednesday forecast global growth to slow to below 2% next year, echoing similar projections by major financial institutions such as Goldman Sachs, Barclays, and J.P. Morgan.

Strategists at the brokerage cited continued challenges from the COVID-19 pandemic and the Russia-Ukraine war — which skyrocketed inflation to decades-high levels and triggered aggressive policy tightening — as reasons behind the outlook.

“We see global performance as likely (being) plagued by ‘rolling’ country-level recessions through the year ahead,” said Citi strategists, led by Nathan Sheets.

While the Wall-Street investment bank expects the U.S. economy to grow 1.9% this year, it is seen more than halving to 0.7% in 2023.

It expects year-on-year U.S. inflation at 4.8% next year, with the U.S. Federal Reserve’s terminal rate seen between 5.25% and 5.5%.

Among other geographies, Citi sees the UK and euro area falling into recession by the end of this year, as both economies face the heat of energy constraints on supply and demand front, along with tighter monetary and fiscal policies.

For 2023, Citi projects UK and euro area to contract 1.5% and 0.4%, respectively.

In China, the brokerage expects the government to soften its zero-COVID policy, which is seen driving a 5.6% growth in gross domestic product next year.

Emerging markets, meanwhile, are seen growing 3.7%, with India’s 5.7% growth — slower than this year’s 6.7% prediction — seen leading among major economies.

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