Key highlights
- The Nairametrics Corporate News Roundup is a summary of major corporate announcements that dominated the headlines during the week ending April 1st, 2023.
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Hello there. Welcome to the second quarter of 2023. We hope the first quarter treated you nicely.
It’s a brand new quarter full of opportunities for everyone. Let the business begin! That said, below are the main business stories from last week.
Minority shareholders versus Aso Savings & Loans
There was drama at Aso Savings & Loans Plc last week after some minority shareholders accused the company of corporate governance breaches. The shareholders specifically accused the company of asset stripping in its management of Union Homes which was acquired by Aso Savings & Loans in 2013.
Asides from the accusation, the shareholders also petitioned the Securities & Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and the Financial Reporting Council of Nigeria (FRCN) to intervene in the matter. Among other demands, they’ve asked for a proper investigation into the alleged looting of Union Homes following the acquisition by Aso Savings & Homes.
FirstBank refutes false media claims
FirstBank reacted to media publications which claimed that it had been sued for alleged forgery and criminal breach. A statement sent to Nairametrics dismissed the reports as ‘mischievous’, clarifying that the rumour was being peddled by a delinquent debtor determined to embarrass the bank and frustrate its loan recovery effort.
The statement further assured the general public that FirstBank maintains the highest ethical standards in its operations and will never engage in any form of illegality.
KudaBank crashed again…
Kuda Bank experienced a major technical glitch which caused customers’ monies to disappear from their mobile apps by automatically setting their balances to N0.00. This happened barely a month after a similar incident occurred at the height of Nigeria’s cash scarcity challenge in February.
Following the technical glitch, the neo bank issued a statement apologising to customers whilst assuring them that the matter would be resolved.
This is why FBN Holdings hasn’t filed FY 2022 financial report
FBN Holdings Plc said the delay in the filing of its 2022 consolidated audited financial statements was due to the pending final audit of one of its subsidiaries and approval from its primary regulator. A statement by the banking group further noted that the process will be concluded soon.
FBN Holdings Plc subsidiaries include First Bank of Nigeria Limited, FBNQuest Merchant Bank, FBNQuest Capital Limited, FBNInsurance Limited, FBN Quest Asset Managers, FBN Quest Securities, FB Quest Trustees, FBN Trustees Limited, and First Pension Custodian Nigeria Limited.
MTN Nigeria details huge licensing fees and taxes paid to Nigeria
MTN Nigeria Communications Plc disclosed in its recently released FY 2022 audited financial statement that it has, over the past 21 years, paid the Nigerian government a total of N281 billion and $590.5 million in licensing fees, levies/taxes.
The leading telecom firm is expected to renew the 10-year tenure licence in the next 5 years.
Payday’s seed funding round
In deals news, Payday raised $3 million in a seed funding round led by Moniepoint. Other investors who participated in the round include Techstars, HoaQ, DFS Lab’s Stellar Africa Fund, Ingressive Capital Fund II and angel investors such as MFS Africa chief Dare Okoudjou and Norebase CEO Tola Onayemi.
Payday, which had earlier closed a $2 million pre-seed round in 2021, said it plans to use the funds to expand its borderless payment alternatives in major currencies and to obtain operational licensing in the UK and Canada.
Access Bank’s partnership with MFS Africa
Access Bank partnered with MFS Africa to expand its AccessAfrica remittance corridors. Nairametrics reported that the partnership will allow Access Bank’s customers to conveniently transfer and receive money across the world and receive payments from all over the world through MFS Africa’s partners.
Ultimately, the partnership will improve banking convenience and facilitate among neighbouring African countries and beyond.
$10 million trade finance facility for Parallex Bank
Nigeria’s Parallex Bank received a $10 million trade finance facility from Afreximbank. A statement seen by Nairametrics explained that the funding will be used to support SMEs and create credit lines for businesses in sectors such as agriculture, export industry, health, education and renewable energy. The funds will also support other pan-African business opportunities for Parallex Bank’s growing SME segment.
In addition to the funding, Afreximbank will provide technical assistance in capacity development and other training programs geared towards solidifying the relationship between the two institutions.
Dangote’s very expensive bond issuance
Dangote Industries listed its N300 billion Series 1 and 2 bonds at the FMDQ and Nigeria Exchange Limited (NGX). The funds will help to finance the group’s 650,000 bpd refinery project.
Note that this bond is the largest aggregate local currency bond issuance within a calendar year by any corporate organization in the history of the Nigerian capital markets. As expected, investors received it well with many of them participating in the subscription, including domestic pension funds, asset managers, insurance companies, and high net-worth investors.
Wema Bank’s new CEO
Finally, for today’s corporate news roundup, Wema Bank appointed Moruf Oseni as its new Managing Director and CEO, effective April 1, 2023. Oseni has been serving as Acting MD since January 1, 2023, and he will be succeeding Ademola Adebise, subject to the Central Bank of Nigeria’s approval. Before he was appointed MD/CEO, Oseni served as the bank’s Deputy Managing Director, where he demonstrated the ability to lead the bank to greater heights.
Wole Akinleye has also been appointed as the new Deputy Managing Director, while Tunde Mabawonku is the new Executive Director. These appointments are expected to contribute significantly to the continued transformation and growth of the Bank, positioning it as a leader in Nigeria’s banking industry through innovation and technology.