News
Nigeria’s top five tier-one banks earn N4.2 trillion in six months
The top five tier-one Nigerian banks, based on market capitalization, reported a combined gross earnings of N4.2 trillion in the first half of 2023. This figure represents a 6.7% decrease compared to their total earnings for the full year of 2022.
The five banks, which are FBN Holdings, United Bank for Africa (UBA), GTCO, Access Holdings and Zenith Bank, achieved gross earnings of N4.2 trillion in H1, up from N1.96 trillion recorded in the corresponding period in 2022.
The H1 figure posted by the five banks is close to N4.5 trillion achieved in the 2022 full-year operations, despite the macroeconomic challenges. But operators and investors over the weekend, expressed hope over the sustainability of the performance, telling them to re-structure to survive ongoing reforms.
However, they warned that if the government fails to pursue rigorous policies that would help tackle the problems facing the real sector, the reforms would impact the fortunes of the banks.
President of New Dimension Shareholders Association of Nigeria, Patric Ajudua, said the rising interest rate and naira devaluation, following the apex bank’s resolve to keep increasing rates to fight inflation, have given banks the leverage to charge more for loans and advances.
According to him, most tier-one banks also have a large foreign asset, which has given them the leverage to make many gains from forex, coupled with the income from yield from the fixed market.
He added that the sustainability and determination of the current government efforts to grow the economy by addressing forex issues, high inflation and encouraging private sector participation in the economy, would continue to improve banks’ performance.
The top five tier-one Nigerian banks have reported a combined gross earnings of N4.2 trillion in the first half of 2023, representing a 6.7% decrease compared to their total earnings for the full year of 2022. This decrease in earnings is attributed to various factors, including inflation and price adjustments. However, it’s worth noting that the performance of these banks is expected to be sustained if appropriate measures are taken to address high inflation and improve the operating environment, especially for manufacturers and operators in the real sectors.
Here is a breakdown of the gross earnings for these banks in the first half of 2023:
- United Bank for Africa (UBA): N981.8 billion (164% growth compared to H1 2022).
- Zenith Bank: N967.3 billion (139% growth compared to H1 2022).
- Access Bank: N940 billion (58% growth compared to H1 2022).
- Guaranty Trust Bank (GTCO): N672.6 billion (181% growth compared to H1 2022).
- First Bank Holdings: N656.6 billion (82.8% growth compared to H1 2022).
The economic environment in Nigeria, characterized by inflation and currency depreciation, continues to pose challenges to various sectors, including manufacturing. However, the banking industry has shown resilience and improved performance despite these challenges. The sustainability of this growth will depend on efforts to address inflation and improve the overall business environment.
News
Lagos schedules meeting with owners of distressed buildings.
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
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FG threatens contractors over Enugu-Onitsha road delay
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
News
Ekiti state government mediates land dispute between traditional ruler and family in Epe-Ekiti
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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