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AfDB Invests $500m in Development Bank of Nigeria

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  • AfDB Invests $500m in Development Bank of Nigeria

The African Development Bank has announced that it was investing about $500m in the Development Bank of Nigeria.

According to the AfDB, while $50m is invested in equities, about $450m is set aside for loans that will be disbursed to micro, small and medium enterprises through microfinance institutions and Deposit Money Banks.

The Vice-President, AfDB, Pierre Guislain, disclosed this at the headquarters of the DBN in Abuja while speaking with journalists after concluding a meeting with officials of the lender on Wednesday.

Explaining how the AfDB had been of support to the DBN, Guislain said, “We invested in equities, which is about $50m, as well as in loans, which also is about $450m. This is a really big financial commitment and so we have made the first disbursement, which happened last month and is on the loan part. It is also important to state that we will be continuing as planned.”

He further stated that the AfDB was a major shareholder in the DBN and was part of the founders of the institution, as it fully participated in its creation.

Guislain stated that the AfDB had a major aim of supporting the MSMEs in Africa, adding that in order to achieve this, it had to work with national partners.

He said, “We are one of the major shareholders of the bank (the DBN) and one of the major lenders to the bank. One of the main goals of the AfDB is to support micro, small and medium enterprises across the continent of Africa.

“And providing a support at that level requires working with national partners who then in turn work with their own local financial institutions.”

In his address, the Chairman, DBN, Dr. Shehu Yahaya, noted that the Federal Government, in close partnership with international development finance institutions such as the AfDB, established the DBN to provide sustainable financing through eligible participating financial institutions for on-lending to the MSMEs in order to develop that segment of the Nigerian economy.

He stated that on October 30, 2017, the DBN disbursed a total of N5bn to microfinance institutions for on-lending to over 20,000 MSMEs across the country.

Yahaya said, “We have commenced the engagement of commercial banks. Eligibility questionnaires have been sent to all commercial banks, out of which 12 have responded and expressed interest in assessing the DBN loan. The on-boarding process for banks that met our eligibility criteria has commenced.

“Two commercial banks have already signed our master lending agreement and due diligence on these banks will commence shortly, while we work towards signing on two more commercial banks this month. Overall, a total of 36 PFls were engaged, of which 32 responded and were duly assessed, with only 21 meeting the DBN eligibility criteria.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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