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Six Banks Pay N155.45bn Into AMCON In Three Years

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Six commercial banks have made payments totalling N155.45 billion into the sinking fund of Asset Management Corporation of Nigeria (AMCON) within three years.
Reports say that Access Bank, GTBank, United Bank for Africa (UBA), Fidelity Bank, FCMB Group and Sterling Bank made the payments between 2015 and 2017.
Data obtained from the banks’ annual reports showed that Access Bank paid the highest amount of N39.59 billion; N12.06 billion in 2015, N12.06 billion in 2016 and N15.47 billion in 2017.
It was followed by GTBank which paid N35.09 billion; N10.63 billion in 2015, N11.39 billion in 2016 and N13.07 billion in 2017, respectively.
UBA contributed N34.85 billion; N11.08 billion in 2015, N11.08 billion in 2016 and N12.69 billion in 2017.
Reports also said that Fidelity Bank paid a total of N18.60 billion, being N5.94 billion paid in 2015, N6.16 billion in 2016 and N6.50 billion in 2017.
FCMB Group accounted for N16.94 billion, N5.66 billion in 2015, N5.62 billion in 2016 and N5.66 billion in 2017, while Sterling Bank contributed N12.38 billion, N4.13 billion in 2015, N4.04 billion in 2016 and N4.21 billion in 2017.
According to reports, the Central Bank of Nigeria (CBN), on January 1, 2011, signed an agreement with banks operating in the country to establish the AMCON sinking fund.
The agreement required the CBN to contribute N50 billion and the banks an equivalent of 0.3 per cent of their total assets as at the date of their audited financial statements, annually for ten years.
However, the contribution, a non-refundable levy on all banks in Nigeria, was increased to 0.5 per cent in 2013.
The fund does not represent any ownership interest, neither does it confer any rights or obligations (save to pay the levy) on the contributor.
The money from the fund is used to purchase Federal Government securities and the returns from the investment is redistributed among the contributing banks.
The sinking fund has, however, attracted opposition from shareholders of many banks who have called on the Federal Government to scrap it to enhance shareholders return.
Specifically, National Coordinator, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, called on the Federal Government to wind down AMCON.
Okezie said that shareholders had been shortchanged by the corporation, and that the contributions to the sinking fund would have translated to huge dividend to banks’ shareholders.
He said shareholders would resort to court action if government elongated the lifespan of AMCON.
“If government dares us and elongates the lifespan of the corporation, we will go to court to challenge the decision when the time comes,” Okezie said.
Also, Publicity Secretary, Independent Shareholders Association of Nigeria, Mr Moses Igbrude, said AMCON was an emergency toxic vehicle established by the government through the CBN and stakeholders then to save the situation at hand.
Igbrude said that the government needed to evaluate the performance of AMCON to ascertain if it met the expected set goals.
He noted that the corporation’s objective was to buy banks’ toxic assets to stabilise and to avoid the collapse of the financial sector.
Head of Banking and Finance Department, Nasarawa State University Keffi, Prof. Uche Uwaleke said that all over the world, asset management companies were crisis resolution vehicles with clear mandates and a clause that defines their terminal dates.
Uwaleke called for a review of the the operations of AMCON with a view to ascertaining its continued relevance to the country’s financial system.
He urged the government to examine the extent to which the corporation had helped to curb non-performing loans in the banking sector.
However, Prof. Sheriffdeen Tella of the Department of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun is of the opinion that the problems that necessitated AMCON are yet to be fully resolved and it should be given more time to wind down.
“There is no need for the institution to wind down prematurely, else the need to resurrect it or bring up another body for the same job might be inevitable,” Tella said.
He said that the issue of unnecessary levy could be resolved by the intervention of the Chartered Institute of Bankers of Nigeria, the apex bank and AMCON.
AMCON’s Chief Executive, Mr Ahmed Kuru, said recently that with the recession, the rate at which banks’ assets were growing had reduced, affecting their contributions to the sinking fund.
Kuru said if banks’ debt to the CBN were not fully repaid before 2023 when the corporation is expected to wind down, they would continue to pay into the fund which will then be transferred to the CBN.

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Maritime

Shippers’ Council Registers 160 Port Operators

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The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”,  Akutah said.
He said  that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said  port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu

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Business

Chivita, Hollandia Reward Outstanding Trade Partners At Annual Conference

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Chivita| Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.
The Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company in the 2023 year under review.
A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognized commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.
Eelco Weber, Managing Director, Chivita|Hollandia (CHI Limited), stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners. “Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible” he said.
Bola Arotiowa, Chief Commercial Officer, Chivita|Hollandia (CHI Limited), in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarize themselves with the company’s goals and objectives for each year, and serve as a driver for mutual success.
“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable. As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our conusmers which in turn will deliver value to them”, Mr. Arotiowa added.
Speaking at the conference, HajiyaBilikisuSaida, Chief Executive Officer of Smabirm Nigeria Limited, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited) products expressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.
Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.
The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.
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Business

AXA Mansard Backs Female-Owned MSMEs With N1.4m Grant

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A global leader in insurance and asset management, AXA Mansard, has supported three female-owned MSMEs with business grants totaling 1.4 million to boost their operations.
This, the company said, is part of its commitment to women and the Medium, Small, and Medium-scale Enterprise (MSME) sector in the country.
The three businesses were successful at the International Women’s Day Pitch Competition, organised in partnership with SME 100 Africa in Lagos.
According to the Head of Marketing, AXA Mansard, Olusesan Ogunyooye, the competition, which is aimed at supporting female entrepreneurs in Nigeria, “is another way AXA is demonstrating its commitment to the causes of women and stimulating the MSME sector in Nigeria”.
The business pitch competition received numerous entries from women across different sectors, but after a rigorous selection process, shortlisted participants were selected to participate in the competition.
Ogunyooye said “the programme provided a unique opportunity for women from various works and socio-economic classes to showcase their innovative ideas and solutions in sectors such as food, tech, fashion, and fragrance, creating an atmosphere filled with excitement, enthusiasm, and a strong sense of community”.
He stressed the importance of investing in women, saying it is not just the right thing to do, but also aligns with AXA’s purpose of acting for human progress.
He explained that AXA believes the future of women should not be at risk, hence investing in their economic empowerment is a crucial part

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