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UBA to Expand to Six More African Countries

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UBA
  • UBA to Expand to Six More African Countries

The United Bank for Africa Plc (UBA) has said it plans to extend its presence in Africa from 19 countries, Nigeria inclusive, to 25 countries by 2024.

The Head, Investor Relations, UBA, Mr. Abiola Rasaq, who disclosed this during a media briefing in Lagos at the weekend, said the bank has developed a cost-effective strategy to achieve this plan. He explained that the bank’s operating licence in some of the African countries allows it to expand into some neighboring countries without raising fresh capital

“The way we are going to do it this time around is a different. Initially, when we went into some of these African countries we operate presently we went in fully as a new bank. In the countries, we are targeting, based on our current strategy and the mapping that we have done, we have opportunity with the licence that we have to move into those countries.

“There are two different types of licences. There is the unit licence and uniform licence. The unit licence only allows you to operate in just one country. In Senegal presently, we have a uniform licence. That uniform licence gives us the priority to actually passport our licence for example into Mali, if we think Mali is right.

“So, our business in Chad presently, holds a uniform licence that gives us the opportunity to passport that licence into Niger Republic if we think the timing is right and there are opportunities in those markets. So, this is a strategy we want to use to go into those markets we are targeting.

“We are using this strategy because we want to be able to sweat the capital we have put in each of the businesses without taking excessive risks in each of the countries. So, with this strategy, we don’t have to raise new capital. This is a lot more cost efficient and we would need little or no capital in those businesses and we are likely to make profit even from year one,” Rasaq explained further.

Earlier, the Group Chief Finance Officer, UBA, Mr. Ugo Nwaghodoh, said the objective of the bank is to grow its business in many other countries to be as big as what it has presently in Ghana, Senegal, Congo Brazzaville and Cameroon.

This, according to him is because of the positive growth projections on Africa from notable institutions such as the International Monetary Fund (IMF).

“One of the areas we are driving business in Africa is in supporting key sectors such as oil and gas, infrastructure, agriculture, top manufacturers and as you are aware, a lot of the markets are rich in commodities and agriculture. And these are the key drivers of these economies. What is very important is that in any market you operate, you play very well.

“We are also pioneering the introduction of certain electronic banking solutions in some of these markets and we are making a lot of money from this. We are deepening our play in these markets, driving financial inclusion and that is helping our business,” Nwaghodoh said.

He, however, declined to disclose the bank’s exposure to Etisalat Nigeria, saying: “We are not unaware of the news around Etisalat’s debt. I think the issue has been overhyped and there is a lot of misconception around what the issues are. What I can tell you is that there is no amount that is due for payment to UBA Plc that has not been paid by Etisalat.”

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

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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