Nigeria: Press zooms in on Access Bank’s plan to acquire 80% stake in Ugandan bank, others

APA – Lagos (Nigeria)
The report that Access Bank, the flagship subsidiary of Access Holdings Plc, has entered into a transaction with the Ugandan-based Finance Trust Bank Limited and its shareholders for the acquisition of a majority equity stake in FTB is one of the trending stories in Nigerian newspapers on Thursday.
The Punch reports that Access Bank, the flagship subsidiary of Access Holdings Plc, has entered into a transaction with the Ugandan-based Finance Trust Bank Limited and its shareholders for the acquisition of a majority equity stake in FTB.
According to a statement signed by the Company Secretary, Sunday Ekwochi, which was filed with the Nigerian Exchange Limited on Wednesday, the proposed acquisition is subject to regulatory approval.
In recent days, Access Holdings had moved to expand its business segments with the acquisition of an insurance brokerage firm, Megatech Insurance Brokers Ltd and the floating of a consumer lending subsidiary, named Oxygen X Finance Company Limited to provide digital lending solutions.
In its latest move, the Holdco said that the transaction would see Access Bank acquire a majority stake from existing shareholders and inject capital to increase FTB’s capital base; “Both which are subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda.
“Following the conclusion of customary conditions precedent and the anticipated closing of the transaction. Targeted for the first half of 2024, Access Bank would own an estimated 80 per cent shareholding in FTB.”
Commenting on the Transaction, Dr. Herbert Wigwe, Group Chief Executive of Access Holdings said, “The Transaction marks an important milestone for Access Bank as it moves us closer to the achievement of our five-year strategic plan through continued expansion into key markets. We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, advance financial inclusion thereby empowering many to achieve their financial dreams. The expansion to Uganda will support the realization of our aspiration to become Africa’s Payment Gateway to the World.”
The newspaper says that Nigeria is seeking $1.5bn aid from the World Bank to tackle the severe dollar shortage contributing to the decline of the naira.
“We’re hoping to get $1bn or $1.5bn from the World Bank” for budgetary support, Finance Minister Wale Edun said Wednesday to Bloomberg.
According to the minister, Africa’s largest economy may also issue a Eurobond in late 2024, adding that with the current economic reforms, the country deserves support.
Eurobonds, denominated in foreign currencies, offer Nigeria a mechanism to navigate its financial landscape amidst challenging economic conditions.
The minister said, “It is a matter of discussion at the moment, but we think we will get the support because we are continuing with our reforms.”
Nigeria has issued Eurobonds in the past to raise debt to fund infrastructure and boost its economy
In 2022, Nigeria entered the international debt markets with a $1.25bn Eurobond issuance, marking its eighth venture into this financial arena, according to the Debt Management Office.
The Guardian reports that President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, has urged the federal government to remove the many obstacles that hinder the organised private sector (OPS) from investing, especially in the areas of the electric vehicles (EVs) optimisation and the switch to gas-powered vehicles.
Speaking with The Guardian in Lagos, Idahosa said while the government is claiming to encourage the switch to EVs and gas-powered vehicles, it is not encouraging private players from investing in the space as a result of excessive import duties, zero support and numerous bottlenecks.
“This is an obvious, significant avenue for job creation. With EVs, we would need charging stations and this would simply mean a new, sustainable economy is being created. Government should identify these opportunities and actively encourage the OPS to invest in them.
“Government should, however, first remove all the bottlenecks on the way before calling the OPS to come and invest; for example, duties on some of these products needed to train and equip the young technicians. It is then we would begin to see and feel the effects of the tough economic decisions taken last year,” he said.
He opined that several vehicles are now running on gas, with some people considering EVs and said it is expected that prices will start to come down. “We also expect that with more refineries coming on board, transportation costs will reduce which will be a positive gain because transport and food are of primary concern to every Nigerian as they are the primary drivers of inflation.
“In various states, we are seeing EVs and gas-powered vehicles on the road and efforts are being made to expand the number of these categories of vehicles.
This year is all about enjoying the dividends of the tough decisions that were taken last year, especially in regards to fuel subsidy removal.”
He urged the government to invest and give incentives to private sector players to also invest in alternative types of transport, especially in terms of import duty waivers for equipment required to build autogas stations.
The newspaper says that the Nigerian Government has direct investigations into the explosion that rocked Ibadan Oyo State on Tuesday, which resulted in the loss of lives and destruction of property.
It also describes the explosion in Ibadan, Oyo State, as a sad and tragic occurrence.
The Minister of Solid Minerals, Dr. Oladele Alake, disclosed this in a statement, expressed his condolences and sympathies to the victims and their families.
Alake said: “I offer my condolences over lost lives on behalf of the Federal Ministry of Solid Minerals to Governor Seyi Makinde and the good people of Oyo State.
“I also extend my sympathy to the wounded and other victims who suffered one loss or the other, especially residents whose houses were destroyed. I pray to the Almighty God to comfort the family of the deceased and grant succour to those who lost valuables as they begin to rebuild.
“Oyo state government and emergency response agencies of both the state and federal governments have promised to help as much as possible. In the interim, I have directed the ministry’s mine officers who are already on site in Ibadan to join ongoing investigations to find out the immediate and remote causes of the explosion.
“We have ordered a detailed investigation, and our officers will work and collaborate with the Oyo State Government to know the actual cause. If the explosion was caused by mining explosives devices as earlier reported, the ministry will double its effort to tighten the noose around those acquiring explosives and storing them illegally.”
He commended Governor Seyi Makinde for the rapid mobilization of emergency response, including the deployment of fire service, police and security agencies.
GIK/APA