Rashidat Okunlade Writes

IFC on Monday made its largest-ever investment in northern Nigeria, providing a financing package alongside African and European partners to BUA Cement Plc to help the company part-finance and develop two new, energy-efficient cement production lines that will create up to 12,000 direct and indirect jobs.

IFC’s $500 million financing package includes a $160.5 million loan from IFC’s own account, a $94.5 million loan through the Managed Co-Lending Portfolio Program (MCPP), and $245 million in parallel loans from syndication partners; the African Development Bank (AfDB) – $100 million, the Africa Finance Corporation (AFC) – $100 million, and the German Investment Corporation, Deutsche Investitions- und Entwicklungsgesellschaft (DEG) – $45 million.

The financing, announced during the Africa CEO Forum in Abidjan, Cote d’Ivoire, will allow BUA, Nigeria’s second-largest cement producer, to develop new production lines in northern Nigeria’s Sokoto State. The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tons of cement annually when complete, serving markets in Nigeria, Niger, and Burkina Faso.

Investing in northern Nigeria is integral to IFC’s strategy to promote sustainable development in underserved regions. This includes areas with limited opportunities and a need for increased private-sector engagement. The new plants will provide local developers with a reliable and affordable source of cement, and bolster the construction of essential infrastructure, fostering economic growth and prosperity for the region.

The project is expected to create about 1,000 direct jobs and 10,800 indirect jobs. Direct jobs include those in manufacturing, engineering, and advanced automation systems. Indirect jobs include those in the cleaning, maintenance, mining, and transportation sectors.

“BUA is delighted to partner with IFC and other esteemed institutions in securing this $500 million facility to develop energy-efficient cement production capacity and strengthen our equipment and logistics capabilities in northern Nigeria. In line with our commitment to sustainability and ESG principles, this investment will create jobs and contribute to economic and infrastructural development within Nigeria and the greater Sahel region. We are particularly pleased to have successfully gone through the rigorous process with IFC, AfDB, AFC, and DEG, which validates our responsible business practices. By focusing on greener fuels and enhancing our equipment and logistics platform, BUA Cement is building a foundation for sustainable infrastructure growth and a more inclusive society,” said Abdul Samad Rabiu, Chairman and Founder of BUA Group.

“We are pleased to join with our partners to support BUA with an investment that will boost industrialization, create jobs and deliver economic growth in northern Nigeria, a region with significant economic potential,” said Makhtar Diop, IFC’s Managing Director.

The financing package announced by IFC and its partners will also allow BUA to replace some of its diesel trucks with vehicles that are run partly on natural gas, over time producing fewer emissions. As part of the project, IFC will also advise BUA on developing a gender-inclusive workplace strategy that creates more opportunities for women across its operations.

“Following an initial $200 million investment in BUA Group in 2021, we are proud to play another key role in this landmark manufacturing project set to transform the construction sector in northern Nigeria and the entire country. Investing in this project will sustainably build Nigeria’s local manufacturing capacity, empowering local communities and creating employment opportunities. AFC is committed to working with our partners to accelerate development impact through infrastructure solutions that support value addition, industrialization, and job creation throughout Africa,” said Samaila Zubairu, CEO & President of Africa Finance Corporation (AFC).

“The African Development Bank is pleased to be partnering with IFC and BUA on this expansion project as it is aligned with our priority strategies of industrializing Africa and improving the quality of lives of Africans through the increase in cement production which will lead to the development of additional affordable housing and critical infrastructure in Nigeria and neighboring West African countries while supporting the use of cleaner energy at BUA’s Sokoto facility,” said Solomon Quaynor, Vice President – Private Sector, Infrastructure and Industrialization of African Development Bank (AfDB).

“DEG’s mission is to be a reliable partner to private sector enterprises as drivers of development and creators of qualified jobs. We are pleased to contribute to this transaction together with our development finance partner institutions. Together we support BUA in its transformation towards a more sustainable production by implementing innovative technology. The significant reduction of CO2 emissions and the creation of decent jobs in a region with many vulnerable households are key factors for DEG’s financing,” said Gunnar Stork, Senior Director at DEG.

The investment in BUA is part of IFC’s strategy to promote diversified, inclusive growth and job creation in Nigeria, where IFC supports the manufacturing agribusiness, healthcare, infrastructure, technology, and financial services sectors. IFC has an active investment portfolio of $2.3 billion in Nigeria.

Know More About IFC: a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in over 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.

Know More About BUA Group: BUA Group is one of Africa’s leading manufacturing, mining, foods, and infrastructure conglomerates with diversified interests in a wide range of sectors, including but not limited to Cement, Sugar, Flour Milling, Real Estate, logistics, and Infrastructure. Established in 1988 by Abdul Samad Rabiu, BUA Group has consistently grown over the years, establishing itself as a leading player in the Nigerian and African private sectors. As an organization, BUA Group places a strong emphasis on operational excellence, leveraging innovative technologies, and nurturing a high-performing workforce to stay competitive. Beyond its business operations, the group is dedicated to contributing positively to the socio-economic development of its host communities, signifying its commitment to sustainable and responsible business practices. For more information, visit www.buagroup.com

Rashidat Okunlade Writes

FBN Holdings Plc. (FBNH) announces its unaudited results for the first quarter ended March 31, 2023.

Selected Financial Summary 

Nnamdi Okonkwo, Group Managing Director commented: “FBNHoldings has sustained its positive performance momentum despite the clearly difficult operating environment. This is a testament to our ability to effectively navigate the challenging business terrain and optimise opportunities. It further demonstrates our disciplined risk management and strong execution capabilities resulting in enhanced revenue generation and improved bottom line.

“Notwithstanding the ongoing progress, we remain focused on innovating and deepening our value propositions and delivery model while optimising operational efficiencies, using technology, to drive sustainable earnings and returns for our shareholders. We are confident that the Q1 performance will be maintained for the rest of the year.”

 Commercial Banking

• Gross earnings of ₦7 billion, up 44.2% y-o-y (Mar 2022: ₦170.4 billion)
• Net interest income of ₦110.0 billion, up 50.9% y-o-y (Mar 2022: ₦72.9 billion)
• Non-interest income of ₦67.8 billion, up 10.6% y-o-y (Mar 2022: ₦61.3 billion)
• Operating expenses of ₦107.6 billion, up 21.0% y-o-y (Mar 2022: ₦88.9 billion)
• Profit before tax of ₦55 billion, up 57.0% y-o-y (Mar 2022: ₦34.1 billion)
• Profit after tax of ₦48.0 billion, up 54.8% y-o-y (Mar 2022: ₦0 billion)
• Total assets of ₦6 trillion, up 5.1% y-t-d (Dec 2022: ₦10.1 trillion)
• Customers’ loans and advances (net) of ₦3.9 trillion, up 4.5% y-t-d (Dec 2022: ₦3.7 trillion)
• Customers’ deposits of ₦4 trillion, up 6.64% y-t-d (Dec 2022: ₦6.9 trillion)

Dr. Adesola Adeduntan, Chief Executive Officer of FirstBank (Commercial Banking Group) commented: “The FirstBank Group delivered an impressive performance in Q1 2023, with significant growth across key metrics. Gross earnings recorded a substantial increase of 44.2% year-on-year, demonstrating the Bank’s ability to generate substantial revenue from core operations. Net interest income saw a remarkable surge of 50.9% year-on-year on the back of optimal asset pricing and effective management of interest-earning assets. Increasing penetration of digital and transaction banking offerings supported our Q1 performance in non-interest income by 15.3% growth. The increase of 21.0% year-on-year in operating expense reflects the high inflationary environment but within revenue growth. Overall, the Commercial Banking Group delivered substantial growth of 57.0% and 54.8% in profit before tax and profit after tax, respectively, for the quarter.

The growth in our performance metrics underlies the strength in the core fundamentals underpinning our business strategy and the sustainability of our business model. This year marks our 129th anniversary and these results clearly demonstrate the resilience of our business model and proven ability to transform ourselves to meet the demands of changing times and seasons. Our transformative and purpose-driven strategy, alongside our strong value propositions, enables us to continue supporting our customers across our chosen markets. We are optimistic about the rest of FY 2023 and these results are a sign of better things to come.”

 Merchant Banking & Asset Management (MBAM) / FBNQuest

• Gross earnings of ₦85 billion, down 16.4% y-o-y (Mar 2022: ₦10.5 billion)
• Profit before tax of ₦2.2 billion, down 34.4% y-o-y (Mar 2022: ₦3.4 billion)
• Total assets of ₦7 billion, up 0.1% y-t-d (Dec 2022: ₦495.4 billion)

The Chairman/CEO, Nigerians in Diaspora Commission (NiDCOM), Hon Abike Dabiri-Erewa, has called on Nigerians in the Diaspora to consider investing in Nigeria’s healthcare, agriculture, real estate, and other sectors.

This appeal was made during a courtesy visit on Tuesday at the Commission headquarters,  Abuja, by Labour Councillor Abigail Marshall Katung, who expressed her delight at being recognized by her home country.

During the visit, the Secretary to the Commission,  Dr Yakubu Sule Bassi, who represented the NiDCOM Boss emphasized the importance of engaging the Nigerian diaspora in the country’s policies, projects, and overall development.

With over 17 million Nigerians residing abroad, the establishment of the Commission was a strategic move to harness the immense human capital and material resources available within the diaspora community for Nigeria’s socio-economic, cultural, and political advancement.

Bassi further highlighted that the Diaspora’s contribution to the nation is crucial, referring to the “Diaspora Phenomenon” as the new deal.

He outlined three areas through which diaspora Nigerians could make a significant impact. These include resources, talents, and skills.

Bassi also emphasized the need for Diasporans to uphold the  3-point Agenda for Nigerians living abroad. He said Diasporans are to be exemplary ambassadors wherever they are, excel in whatever they do, remain connected to their homeland, and give back to their communities.

Since its inception 4 years ago, the Commission has implemented various programmes to celebrate diasporans, such as the National Diaspora Day, Diaspora Investment Summit, the Badagry Door of Return, and most recently, the Global African Diaspora Symposium.

Little London and Woodhouse Ward Labour Councillor Abigail Marshall Katung, a Nigerian-born politician from Kaduna state, expressed her joy in visiting Nigeria and her commitment to collaborating with NiDCOM.

She acknowledged the honor of being recognized by her home country, which she believes gives her an advantage over her colleagues in the UK.

Having left Nigeria over 20 years ago, Councillor Abigail shared her passion for education and her involvement in medical and educational recruitment, particularly in facilitating Nigerian students’ admission into UK institutions.

She highlighted her focus on empowering young women through a mentorship scheme, mentoring 12 individuals each year, with an emphasis on the girl child. She stressed that “mentorship is about imparting skills and not solely about financial gains”.

Abigail Marshall Katung recently made history as the first African and Nigerian to be elected as a member of the Leeds City Council in the UK. With an overwhelming majority of votes (1,749 votes), she emerged as the Councillor for the Little London and Woodhouse Ward, UK.