Business

Pan-African credit rating agency, Agusto & Co. has affirmed the ‘A’ rating assigned to Fidelity Bank Plc and assigned an ESG score of ‘2’ in reflection of the agency’s view that environmental, social and governance issues have minimal contribution to the Bank’s credit rating.

According to a note on the Agusto & Co. website, “The rating reflects Fidelity Bank’s improved profitability, strong ability to refinance, adequate capitalisation and low level of impaired credits.”

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 7.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recognized as the Best Payment Solutions Provider, Nigeria, 2023 and Best SME Bank, Nigeria, 2022 by the Global Banking and Finance Awards. The bank had previously also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

There is good news for farmers and operators of Micro, Small and Medium Enterprises (MSMEs), as the Central Bank of Nigeria (CBN), has set up National Collateral Registry (NCR) to assist them obtain loans from financial institutions to boost their business, using movable assets as Collateral.

The apex Bank in collaboration with the International Finance Corporation (IFC), established the NCR, a financial infrastructure that will enable MSMEs to leverage on their movable assets (equipment, machinery, vehicles, keke-napep, crops, livestock, account receivables, inventories, jewelleries etc) as collateral for loans in their various banks.

Speaking at a town hall meeting in Benin yesterday, with the theme “MSMEs Safe Haven: Improving Financial Access to the Nation’s Main Economy Drivers”, the Registrar, National Collateral Registry, Mr. Bulus Zgabawa Musa, an Assistant Director of the CBN, said NCR was created in 2015 to deal with movable assets which financial institutions would accept as Collateral to guarantee loans for farmers and MSMEs operators.

Musa who was represented at the event by Dr. Xavier Itam Okon, explained that NCR provides information on all movable assets to banks to enable them reach appropriate decisions on giving loans to prospective clients.

“The message is that you can walk into any of your banks to take business loans, using movable Collateral or assets.

The event was organised by NCR in collaboration with Pro-Poor Growth and Promotion of Employment in Nigeria Program- Sedin of Deutsche Zusammenarbeit (GIZ).

Earlier, Mr. Olawale Afolabi of GIZ, told participants that what his organisation does is to assist prospective clients solve the problems of getting loans from financial houses.

“What we do at GIZ is to look at the problems of securing loans from financial houses. We also teach how to prepare proposals, and support the Cassava value chain,” Afolabi said, adding that GIZ has been in Nigeria since 1974.

Participants at the event, especially those from the informal sector, were urged to think ahead for their retirement by saving gradually.

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The Nigerian House of Representatives has directed the Central Bank of Nigeria (CBN) to immediately suspend the sale of Polaris Bank Plc.

The Reps said the suspension should be until the CBN deposit Insurance Corporation and the Asset Management Corporation of Nigeria concluded all processes for open, transparent, and competitive bid process.

This, the house said it should be in line with best practice and procedure for divestment of this nature.

This followed the adoption of a motion of urgent public importance by Rep. Henry Nwauba (APGA-Imo) at the plenary.

He said public attention had been drawn through a circulation currently on social media in respect of the proposed sale of Polaris Bank for N40 billion.

He said that there was need to ensure that the divestment in the bank did not jeopardize the core reason for the CBN intervention in the bank in the overall public interest.

He added that the divestment should be done most transparently following the required due process.

He said that this was necessary to avert public outcry and untoward reaction from critical stakeholders in the economy, foreign business partners banking community, depositors, Correspondent banks.

He added that it was crucial to avoid the shortcomings of the previous similar exercise undertaken in the past

He said that Polaris Bank was borne out of the bailout of the defunct Skye bank Plc that failed due to poor corporate governance and non-performing loan.

This, he said, was for which close to a trillion Naira of public fund was committed to resuscitating the bank.

He said that the proposed sale was shrouded In secrecy and was opaque and required that it was done in transparency and accountability to eliminate insinuations of corruption.

He said the transited defunct Skye Bank was a systemically important Bank with a large pool of employees, customers, and other stakeholders.

He said that the bank without a bailout would have had a serious contagion effect on the economy and global perception/reputation;

The House therefore set up an Ad hoc Committee to within 20 days, review the total outlay by the Federal Government of Nigeria in Polaris Bank and account for the entire financial input in the bank by the Federal Government.

The House said this should be through CBN, NDIC and AMCON to determine whether the conditions and terms of sale were likely to ensure positive return on public funds thus far committed to the bank, whether as bailout funds or other investments.

The House urged the committee to take action necessary to ensure that the public funds committed to Polaris Bank were appropriately documented, accounted for.

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has hailed the inauguration of Association of Certified Business Development Service Providers of Nigeria (ACBDSP).

The Director-General of SMEDAN, Olawale Fasanya, described it as a welcome development, adding that the association would deepen the practice of business development services in Nigeria.

Fasanya said this on Tuesday when the Board of Trustees (BOT) and members of the ACBDSP visited him in Abuja.

The SMEDAN boss reiterated the objectives of the BDSP programme in Nigeria, saying that the Federal Government plans to achieve a more effective Small and Medium Enterprises (SMEs) sector through it.

While pledging SMEDAN’s commitment to collaborate with the new association, Fasanya tasked all certified Business Development Service Providers (BDSPs) to work hard under the umbrella of ACBDSP.

According to him, this is to bring value to the SMEs in Nigeria and to promote the growth of the sector.

Fasanya further urged the association to drive the commitment of its members toward the shared goals.

He assured the association of SMEDAN’s readiness to support to promote the development of SMEs in the country.

The Chairman BOT, ACBDSP, Stanley Muoneke, commended SMEDAN for the foresight and support during the formation of the association as well as its continued efforts to develop the Micro Small and Medium Enterprises (MSMEs) sector in Nigeria.

Muoneke also hailed the leadership role played by the Enterprise Development Centre of the Pan Atlantic University as well as Kaduna Business School.

He said that the ACBDSP aimed at build a community of professional BDSP practitioners who define excellence and advance ethics for the business development service Providers profession and practice in Nigeria.

“Going into the future, SMEDAN and ACBDSP expect to work closely together on key projects aimed at bringing value and growth to the MSMEs sector in Nigeria,’’ Muoneke said.

The News Agency of Nigeria reports that BOT members of the ACBDSP include Prof. Helen Andow, Dr Dahiru Sani and Hajia Raliat Oyetunde.

Others are Mike Alade, Helen Emore, Ibrahim Buwanhot and Onaifo Uwa. It would be recalled that in 2018, the Federal Government through SMEDAN, set up a national framework for the accreditation and certification of business development service providers.

It aims at setting the standard for business development interventions by certifying a mark of quality for the delivery of business development services to the MSMEs in Nigeria.

BDSPs, who go through training and accreditation process attain the standard benchmark for business development services interventions.

They become certified and assist MSMEs in strategy, performance, competitiveness as well as facilitate access to finance therefore directly contributing to the country’s economic development.

The ACBDSP was formed and incorporated by the certified BDSPs in April 2022 as a platform for advancing professional practice of BDSPs in Nigeria.

It acts as springboard for members to exchange ideas, accelerate business growth, strengthen practical knowledge, drive common standards, and enhance client relationships.

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