Business

Afreximbank Disburses $40m to Fidelity Bank for Acquisition, Recapitalization of Union Bank

Published

6 months ago

June 10, 2024

editor

The African Export-Import Bank (Afreximbank) has announced the disbursement of a $40 million Intra-African Investment Facility to Fidelity Bank Nigeria Plc (Fidelity) to support its acquisition and recapitalization of Union Bank UK. This move is part of Fidelity Bank’s international expansion program.

The facility, provided in two tranches of $20 million each, facilitated Fidelity Bank’s purchase of a 100% equity stake in Union Bank UK. The first tranche helped refinance the acquisition, while the second tranche was used to recapitalize the acquired bank by injecting additional equity, as approved by the United Kingdom’s financial regulator.

With this acquisition, Fidelity Bank aims to establish a new pan-African financial institution that can offer correspondent banking and offshore banking services to African banks and meet the banking needs of Africans in the diaspora.

Kanayo Awani, Executive Vice President of the Intra-African Trade Bank and Export Development Bank at Afreximbank, highlighted the significance of this transaction. “Fidelity Bank’s acquisition of Union Bank UK aligns with Afreximbank’s Intra-African Investment Facility, marking a significant milestone for both institutions,” said Awani. “This initiative reinforces African ownership and control within the global financial landscape. By supporting this strategic transaction, we bolster Nigeria’s banking sector and promote greater financial integration between Africa and its diaspora. This effort is a testament to our commitment to enhancing intra-African trade, promoting economic stability, and driving forward the objectives of Agenda 2063 for a prosperous and self-reliant Africa.”

Awani further explained that Afreximbank’s Bank Acquisition Strategy empowers African entities to acquire financial assets divested by foreign entities in Africa and the diaspora. This aligns with the Bank’s Diaspora Strategy, which seeks to integrate the African diaspora with the rest of the continent. Through the facility, Fidelity Bank extends its services to the UK, targeting Africans and African-owned businesses with products supporting diaspora investments.

Dr. (Mrs.) Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, expressed gratitude for Afreximbank’s support. “We are very thankful to Afreximbank for supporting our expansionary initiatives for international growth. This outcome is the result of a strong partnership between the two institutions over the years,” Onyeali-Ikpe said. “The refinancing of the Union Bank UK acquisition by Afreximbank will unlock additional value and help create a scalable and sustainable service franchise that supports trade businesses in Africa and diaspora banking.”

Business

Improve Cash Disbursement Amid Scarcity Complaints, CBN Orders Banks

Published

4 days ago

December 4, 2024

Samson Adeyanju

By Adenike Lawal

The Central Bank of Nigeria (CBN), has directed Deposit Money Banks (DMBs), to enhance cash disbursement processes at counters and Automated Teller Machines (ATMs), to address the ongoing cash shortage across the country.

This directive was detailed in a statement co-signed by Muhammed Olayemi, Acting Director of Currency Operations, and Aisha Isa-Olatinwo, Acting Director of Branch Operations.

The move follows widespread complaints from bank customers about the difficulty in accessing cash.

The CBN’s intervention is aimed at alleviating these challenges and ensuring smoother currency circulation nationwide.

The apex bank also urged affected customers to report issues with cash availability, whether at ATMs or bank branches, using designated complaint channels.

This initiative is intended to help the CBN identify and resolve bottlenecks hindering cash accessibility.

To facilitate investigations, customers are advised to provide detailed information, including their account name, the name of the bank involved, the amount they attempted to withdraw, and the time and date of the incident.

For swift resolution, complaints can be lodged through phone numbers specific to local CBN branches or via email addresses provided by the central bank.

The CBN reiterated its commitment to ensuring citizens have reliable access to cash and minimizing disruptions to economic activities caused by scarcity.

Business

PENCOM Allows Low-Income Earners to Withdraw Entire Retirement Savings

Published

5 days ago

December 3, 2024

Samson Adeyanju

By Cynthia Abah

Pensioners with low earnings can now choose to withdraw their entire retirement savings in a lump sum or continue receiving monthly pension payments, pending the approval of the Minimum Pension Guarantee.

This change was announced in a memo from the National Pension Commission (PenCom), signed by A.M. Salem, Head of the Surveillance Department, and made public in Abuja on Monday.

The memo, dated November 27, 2024, aligns with a new provision (4.1(g)) in the revised regulation on the administration of retirement and terminal benefits, following the introduction of the new national minimum wage of N70,000.

Previously, retirees could only withdraw one-third of their total Retirement Savings Accounts (RSAs). However, the new regulation, prompted by the increase in the minimum wage, allows retirees whose RSA balance is insufficient to provide a pension of at least one-third of the N70,000 (i.e., N23,333.33) to withdraw the full balance in a lump sum.

The memo, addressed to pension fund administrators and custodians, referenced the National Minimum Wage Act signed by President Bola Tinubu on July 29, 2024.

It mandates that pension fund administrators apply the N70,000 minimum wage when processing retirement benefits.

Retirees whose monthly or quarterly pensions fall below N23,333.33 may opt to either withdraw their full RSA balance or continue receiving their current pension until the Minimum Pension Guarantee is established.

The memo also detailed the process for retirees requesting full access to their RSA balance. Pension fund administrators are instructed to submit the retiree’s request to PenCom, along with a consent form, signed application letter, and payment schedule.

The circular, which is effective immediately, emphasizes the importance of full compliance with the new guidelines.

Business

Air Peace Partners Opay to Enhance Payment Flexibility for Customers

Published

6 days ago

December 2, 2024

Admin

By Adenike Lawal

Air Peace, West Africa’s largest airline, has announced a strategic partnership with Opay Payment Services, integrating its platform into the airline’s Internet Booking Engine (IBE).

This collaboration introduces multiple payment options, including Bank Card, Opay Wallet, Bank Transfer, and USSD, aimed at enhancing transaction security and convenience for customers booking flights.

Dr. Ejike Ndiulo, Head of Corporate Communications at Air Peace, highlighted the airline’s commitment to meeting evolving customer needs through innovative solutions.

He stated that the integration of Opay’s services aligns with the airline’s vision to offer secure and flexible payment methods within a user-friendly interface, enhancing the overall travel experience.

This initiative is the latest in a series of customer-focused innovations by Air Peace.

In October 2022, the airline partnered with Kalabash to launch the Pay-Small-Small scheme, allowing customers to pay for tickets in installments.

Additionally, the airline collaborated with AIICO Insurance to provide travel insurance, underscoring its dedication to passenger safety and convenience.

Founded in 2013, Air Peace has consistently positioned itself as a leader in service innovation within the aviation sector.

The airline continues to expand its domestic and international routes while leveraging technology to simplify travel for passengers.

With a commitment to connecting regions and delivering world-class service, Air Peace remains at the forefront of enhancing the travel experience for its customers across Africa and beyond.