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FCMB Group Reports N38.2bn Profit in First Half of 2023



FCMB - Investors King

FCMB Group Plc grew profit before tax by 148 percent to N38.2 billion in the first half of the year, up from N15.4 billion reported in the same period of 2022.

This was disclosed in the bank’s unaudited financial statement obtained by Investors King. from the Nigerian Exchange Limited (NGX).

The growth in FCMB’s earnings was no fluke as the lender recorded growth across key indicators. The banking group division posted 185.5 percent increase while consumer finance, investment management, and investment banking also posted strong growth at 10.3 percent, 53.3 percent, and 54.3 percent, respectively.

Driving this remarkable financial performance, FCMB Group’s gross revenue surged by 88.7 percent to N238.2 billion in June 2023 when compared to N126.2 billion in the previous year’s period. This growth was fueled by a 51.9 per cent increase in interest income and an astounding 216.9 per cent increase in non-interest income.

The Group Chief Executive of FCMB Group Plc, Ladi Balogun, attributed the company’s success to the strategic implementation of their unique group structure, fostering a technology-driven ecosystem that promotes inclusive and sustainable growth in the communities they serve.

However, it wasn’t just financial gains that FCMB Group celebrated. The half-year results showcased their significant contributions to environmental, social, and corporate governance activities, playing a crucial role in promoting sustainable and inclusive growth in society.

FCMB’s commitment to supporting agriculture was evident as they increased lending to the agricultural sector by 18.4 per cent to N174 billion for the first half of 2023. Working with partners, the bank provided finance for 24,000 rural farmers and supported the rehabilitation of 80,000 farming households in the North-East geo-political zone of Nigeria.

FCMB Group demonstrated its dedication to climate action by securing funding of up to N5 billion for on-lending to customers in need of solar energy solutions, aligning with their commitment to support renewable energy sources.

The bank contributed to foreign exchange flows by facilitating over $160 million and $81 million in export and remittance flows into Nigeria during the first half of 2023.

Also, FCMB Group expanded its customer base by acquiring an impressive 869,000 new customers, bringing their total customer base to 11.7 million for the first half of 2023, compared to 10.1 million in the corresponding period of 2022.


Nigeria’s Tax Revolution: Shifting Burden to the Wealthy and Streamlining the System



Value added tax - Investors King

President Bola Tinubu’s administration is set to revolutionize the nation’s tax system.

The ambitious plan seeks to redistribute the tax burden, making the wealthy pay their fair share while stimulating business growth through corporate tax cuts.

The cornerstone of this tax reform initiative is a push to increase Nigeria’s tax revenue from 11% to 18% of Gross Domestic Product (GDP) within three years.

Spearheading this transformation is Taiwo Oyedele, who leads a panel appointed by President Tinubu.

Oyedele articulated the primary objectives of the reform, saying “We aim to make the rich pay what is fair and protect those in poverty.”

This move is crucial in a country where extreme wealth disparities persist, with only a small fraction of the population enjoying immense riches.

Notably, the plan also includes a reduction in the corporate income tax rate, which currently stands at an effective rate of over 40%.

The aim is to benchmark this rate against Nigeria’s international peers, fostering a more business-friendly environment.

Nigeria’s tax system has long been plagued by complexity, with nearly 70 different taxes and overlapping jurisdictions.

The reform initiative seeks to simplify this by streamlining tax structures and drastically reducing the number of taxes to single digits.

Also, a tax amnesty is under consideration, aimed at encouraging tax compliance and offering relief for past debts. The hope is that by fostering transparency and accountability, more Nigerians will willingly contribute to the country’s fiscal health.

In a nation where government debt has surged dramatically in recent years, this tax revolution is seen as a pivotal step towards reducing the deficit and ensuring sustainable economic growth.

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Federal Government’s $3 Billion Rescue Plan to Bolster Naira Stability



Bola Tinubu

The National Economic Council (NEC) has confirmed the deployment of the $3 billion emergency loan-for-crude oil, secured by the Federal Government in August, for the stabilization of the national currency.

The naira’s value has been under siege, with fluctuations in the Investors & Exporters’ window and a parallel market rate that briefly hit N1000/$ this month.

Addressing reporters following the 136th NEC meeting at the Aso Rock Presidential Villa, Nasarawa State Governor Abdullahi Sule expressed confidence in the plan.

He stated, “With the plan that will come out and with all these items that have been listed on the improvement of revenue, the $3 billion shall be useful to us down the line.”

The emergency loan, secured from Afrexim Bank, was initially intended to relieve pressure on the naira, facilitate the settlement of taxes and royalties in advance, and provide the Federal Government with vital dollar liquidity for naira stabilization.

The recent nomination of Olayemi Cardoso as the new Central Bank of Nigeria (CBN) governor by President Bola Tinubu has already shown promise.

The naira experienced a boost in the black market, strengthening by N10 against the dollar, closing at N990/$1.

Governor Sule indicated that the implementation of the intervention would require careful planning and time.

He emphasized the need for the new CBN team to devise effective strategies. In response to inquiries about a supplementary budget, Sule stated that there is no immediate need for one, as the situation does not warrant it.

As Nigeria’s economic landscape faces evolving challenges, the NEC’s decision to harness the $3 billion loan offers a glimmer of hope for a more stable naira in the near future.

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Former FIRS Chairman Muhammad Nami Accused of Controversial N6 Billion Payments After Sudden Exit

Documents reveal questionable approvals and alleged backdating, raising concerns over financial misconduct



Muhammad Nami

Muhammad Nami, the former chairman of the Federal Inland Revenue Service (FIRS), is under scrutiny for approving payments totaling N6 billion to contractors and consultants just days after his abrupt removal from office.

Documents obtained by TheCable shed light on these controversial transactions.

Nami, who was succeeded by Zacchaeus Adedeji, greenlit the payments on September 16, two days after his removal on September 14.

Sources privy to the situation, although not authorized to speak publicly, claim that Nami directed staff to work over the weekend to finalize these transactions.

Additionally, files were allegedly moved from the FIRS headquarters to his residence, where they were purportedly “backdated and signed.”

Perhaps the most eyebrow-raising revelation is that Nami transferred approximately N5 billion from the FIRS account to the Joint Tax Board (JTB) without apparent justification.

It is reported that the FIRS director of finance and accounts reluctantly approved these payments after warning Nami about potential repercussions.

Nami allegedly reassured his subordinates that the incoming FIRS chairman would remain oblivious to these approvals.

Also, documents indicate that Nami approved significant payments, including N1.4 billion for a ‘Business Case for Strategic Leadership’ retreat, N250 million for FIRS Data Mining Management and Analytics in Taxation Course, and N221 million for a ‘Skill Development and Management Improvement Workshop Training.’

Curiously, Nami also appropriated over N81 million for a study visit to the Inland Revenue of Malaysia.

The FIRS, when contacted for comment, remained tight-lipped about the situation. Spokesperson Abdullahi Ismaila stated that he had no knowledge of the payments, while Tobi Johannes, Nami’s former media aide, distanced himself from the matter, emphasizing that his role ceased when Nami’s tenure ended.

These revelations have ignited concerns about financial misconduct within the FIRS and have raised questions about the oversight and accountability of government agencies. The full extent of these allegations is yet to be determined as investigations into the payments and their legitimacy continue.

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