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UBA GROUP STARTS STRONG IN 2017, GROWS PROFITS BY 41% IN FIRST QUARTER · Its African subsidiaries wax stronger, contributing 35% of earnings

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The Pan African financial institution, United Bank for Africa (UBA) has released its unaudited first quarter results, showing significant growth across major income lines.

 

Following a sterling performance in 2016 financial year, UBA Group delivered another impressive 41% percent year-on-year growth in profit-before-tax in the first three months of 2017. Leveraging on strong growth in both interest and non-interest income as well as increased efficiency, UBA recorded N25.5 billion in profit before tax in the first quarter, ending March 31st 2017, compared to N18.1 billion achieved in the first quarter of 2016. The Group also recorded a profit after tax of N22.4 billion in the first quarter, an impressive 32 percent year-on-year growth compared to N17.0 billion achieved in the corresponding period of 2016. The group sustained its strong profitability recording an annualized 19.4% Return on Average equity(RoAE).

 

Driven by an unprecedented 43% year-on-year growth in interest income, UBA Group recorded a 38% percent year-on-year growth in gross earnings to close at N101.2 billion for the three months period ending March 2017, compared to N73.7 billion recorded in the first three months of the year 2016.

 

The Group Managing Director/CEO of the United Bank for Africa Group (UBA), Mr. Kennedy Uzoka, expressed satisfaction with the Bank’s impressive performance in the first quarter of 2017, despite intensifying competition and a very challenging business environment.

 

“Our performance in the first quarter of the year strengthens our optimism on economic and business recovery in Nigeria and many of our markets across Africa. More importantly, this result is evidence of efficiency gains in our pricing, balance sheet management and operations,”  Uzoka said.

 

“Driven by our balance sheet liquidity, we grew interest income by 43% to an unprecedented quarterly run-rate of N77 billion. Buoyed by improving foreign currency supply in Nigeria, remittance and trade services fees almost doubled and foreign currency trading income grew by 148% year-on-year, as we leveraged our Customer First initiatives to gain market share in these offerings. More so, it is my pleasure to report that we made further progress in our consistent retail penetration, as reflected in the 12% year-to-date growth in retail savings and current account deposits. Notwithstanding the tight interest rate environment, we recorded a 30bps reduction in cost of funds to 3.4%, a positive result of our customer service-led approach to low cost deposit mobilization. As at Q1, low cost savings and current accounts (CASA) represent 80% of our deposit funding,” Uzoka explained.

 

While emphasizing the increasing relevance of its African operations to its bottom line, Uzoka said, “Our businesses outside Nigeria continued to wax stronger, contributing 35% of our earnings. We remained prudent in risk asset creation growing net loans by 2% year-to-date, as we have continued to monitor development in key sectors of the economy to take advantage of emerging bankable opportunities in due time. Albeit the structural challenges that exist in Africa, the opportunities and returns are immense and compelling. We will deepen our penetration across our chosen markets, as we diligently execute our strategies for consistent market share gain.”

 

Also speaking on UBA’s financial performance and position, the Group CFO, Ugo Nwaghodoh, said the Bank’s performance in the first quarter further proves its resilience and very strong prospect of the business across its chosen markets.  He said that beyond the sterling growth in top and bottom lines, he remained particularly impressed with the quality of the earnings, which reflects the bank’s focus on the core business of financial intermediation and transaction banking.

 

“We remain steadfast on our prudent and proactive risk management, which helps to minimize the impact of the macroeconomic pressures on our portfolio. Our non-performing Loan ratio stood at 3.95%, with a 136% provisions coverage, inclusive of regulatory risk reserve.  We remain well capitalized and liquid to fulfill our growth strategy; 19.4% BASEL II capital adequacy ratio and 41% liquidity ratio, which present opportunity to explore the headroom in our low LTD of 61%,” Nwaghodoh said.

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Yahaya Bello paid $845,852 in advance for his children’s school fees – Witness

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An official from the American International School, Abuja, on Wednesday testified in the Federal High Court in a case of money laundering involving former Kogi State Governor Yahaya Bello.

 

The official revealed that the former governor paid a total of $1,606,763.68 in school fees for his children.

 

Nicholas Ojehomon, an auditor at the school, gave this testimony during the ongoing trial, where he appeared as a prosecution witness for the Economic and Financial Crimes Commission (EFCC). Ojehomon confirmed that the payments covered Bello’s children’s tuition fees up until their graduation, with part of the amount paid upfront for future school fees.

 

Bello is facing a fraud charge amounting to N80.2 billion filed by the EFCC. During the trial, the prosecution presented financial records, including detailed statements from the school, showing payments made on behalf of Bello’s children.

 

In earlier testimony, Williams Abimbola, a compliance officer at United Bank for Africa (UBA), had submitted documents showing transactions related to the school fees. The EFCC had previously alleged that just before leaving office, Bello paid $760,000 as an advance for his children’s school fees, which was later refunded following an investigation.

 

On Thursday, Ojehomon testified that Bello’s brother, Ali Bello, facilitated the school fee payments. He explained, “Mr. Ali Bello contacted the American International School, Abuja, on Friday, August 13, to arrange payment for the school fees of the Bello children until they graduate. The school management accepted the payment.”

 

 

Ojehomon confirmed that the payments were made for four of Bello’s children, enrolled in Grades 8, 6, 4, and 2, and also included fees for future children who were expected to start in August 2022, assuming space was available.

 

The amounts paid for each child included: $90,074 for the child in Grade 8, $87,470 for the child in Grade 6, $26,241 for the child in Grade 4, and $18,707 for the child in Grade 2.

 

The witness also identified a contractual agreement between the school and Ali Bello, detailing the prepayment arrangement.

 

 

EFCC counsel Kemi Pinheiro (SAN) presented the school’s admission and prepaid tuition documents as evidence. Ojehomon further testified that a refund of $760,910.84 was made to the EFCC, confirming that the refund was transferred to an account at the Central Bank of Nigeria.

 

The court also heard from Williams, the UBA witness, who submitted additional financial documents related to accounts managed under Bello’s administration. She testified that multiple withdrawals were made through cheques from the Kogi State Government House account, often broken into tranches of N10 million, with funds primarily issued to two individuals, Abdulsalam Hudu and Aminu J.O.

 

Williams confirmed that, on December 12, 2018, ten transactions of N10 million each were processed in favor of Abdulsalam Hudu. Key signatories to the account were also named, including Christopher Enefola (Permanent Secretary), Onekutu Daniel (Chief Accountant), and Abdulsalam Hudu (Accountant).

 

 

However, under cross-examination, Williams admitted that Yahaya Bello’s name did not appear in any of the transactions related to the Kogi Government House account. Defense counsel, Daudu, noted that Bello’s name was absent from the documents presented, to which Williams confirmed it was not listed. She further clarified that she was not the account officer in charge of the Kogi Government House account, which was managed from Lokoja, Kogi State, rather than her branch in Area 3, Abuja.

 

Justice Emeka Nwite adjourned the trial to Friday, March 6, for further proceedings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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VICE PRESIDENT SHETTIMA TO ATTEND NACC 65TH ANNIVERSARY GALA IN LAGOS

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The Nigerian-American Chamber of Commerce (NACC) is set to celebrate its 65th anniversary with a grand gala dinner, featuring His Excellency, Vice President of Nigeria, Alhaji Kashim Shettima, as the Special Guest of Honour.

 

The prestigious event will take place on April 12, 2025, at Lagos Continental Hotel, Victoria Island, Lagos, with the red carpet reception commencing at 5:00 PM.

 

The highlight of the evening will be the inauguration of Alhaji Sheriff Balogun as the 20th President of NACC.

 

Alhaji Balogun will also unveil his leadership team, while outlining strategic initiatives to strengthen bilateral trade relations between Nigeria and the United States.

 

As part of the evening’s programme, 40 new members will be inducted into the chamber, and the NACC multi-storey building project will be officially launched.

 

The gala will also honour outstanding Nigerian and American companies and distinguished individuals, including past presidents of the chamber, for their contributions to economic growth and trade relations.

 

The President of Africa Finance Corporation (AFC), Mr. Samaila Zubairu, will chair the event.

 

Dignitaries confirmed to attend include Governor Uba Sani of Kaduna State, Governor Dauda Lawal of Zamfara State, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, Founder and Chairman of Elizade Group, Chief Michael Ade-Ojo and Chairman of Odu’a Group, Otunba Bimbo Ashiru.

 

Others are Founder of Afe Babalola University, Aare Afe Babalola, Chairperson of Brittania-U Nigeria Limited, Catherine Uju Ifejika, Comptroller General of the Nigerian Customs Service, Bashir Adewale Adeniyi, and Chairman of Zinox Technologies Limited, Leo Stan Ekeh.

 

His Excellency, Governor Babajide Sanwo-Olu of Lagos State, will serve as the Chief Host of the occasion.

 

For 65 years, the Nigerian-American Chamber of Commerce has been at the forefront of fostering bilateral trade relations between Nigeria and the United States, serving as the premier platform for business growth, networking, and investment opportunities.

 

The Chair of the Planning Committee, Dr.Ikenna Nwosu, says all the guests will be treated to one of the grandest anniversary galas ever experienced in the country.

 

 

*VICTOR OJELABI*

Senior PR Associate

Neo Media & Marketing | Chair, Publicity Committee, NACC Presidential Inauguration Dinner & Awards Night

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NAFDAC reopens Onitsha market, confiscates over 50 trailers of fake drugs

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The National Agency for Food and Drug Administration and Control, NAFDAC, has finally announced the reopening of the Onitsha Drug Market and other adjoining markets after nearly one month of closure.

The South-East Zonal Director of the agency, Mr Martins Iluyomade, revealed this on Thursday after a meeting between officials of the agency, the Anambra State government, and market union leaders. He stated that business will officially resume in the markets on Friday.

Other markets, including the plumbing materials market, timber market, surgical materials market, and science laboratory materials market, among others, were affected early last month when the agency shut them down in its fight against illicit drugs.

Iluyomade, who addressed government officials and market leaders before announcing the reopening, said:

“What is happening here goes beyond only Ogbogwu (drug) market; it extends to other markets around this area, and that was why we took the steps we did by closing down everywhere.

“I know there was a lot of apprehension, and people were asking why we locked other markets that had nothing to do with drugs. It seemed as if we were out to punish those who had no involvement. We did not respond because we did not want to join issues, but we found drugs in all the markets we closed.

“What we found in other adjoining markets was just as much as what we found in Ogbogwu market. We did what we did because, if we hadn’t, we wouldn’t have covered the ground we were able to cover.

“We were here last year for an operation, but our men were beaten, and even an officer of the Federal Republic was stripped naked for doing his legitimate duty. We had to lock up everywhere because, if we hadn’t, there would have been collateral damage. This is a major drug market, and if something goes wrong here, drug supplies all over the country will be contaminated.

“We know that since the Federal Government was determined to sanitize this market, if there had been any attack on us, our security men would have reacted, and the damage would have been high. We thank Governor Soludo for his visit. When he heard what we did here, he called to express concern about the welfare of his people, and when we explained to him, he backed the effort to sanitize the market. He later visited us and reiterated the same support as long as what we were doing was right.

“People were already bringing ethnic coloration into it, but I thank the governor for not listening to them. In fact, the governor said there was a need for us to save ourselves because fake drugs kill indiscriminately, regardless of ethnicity.

“The DG of NAFDAC took this assignment as if her life depended on it, and every day she kept calling to know the state of operations. NAFDAC has also committed a lot of resources to this, and she has made a commitment to ensuring that fake drugs are exterminated in Nigeria.”

Speaking on the agency’s findings in the markets, the Zonal Director said:

“It is saddening to see that we have people among us whose only way of making money is by destabilizing the country and killing people.

“We have confiscated over 50 trailers of fake and substandard drugs. Many are still in warehouses in town, and we are coming after them. The volume of narcotics we saw here is enough to destabilize any nation. There is a link between the circulation of narcotics and insecurity. Check any country experiencing insecurity and a breakdown of law and order, and you will see that narcotics are in high supply.

“The number of narcotics we have found here is alarming. The people dealing in them know the effects, but they continue because the sale of narcotics is said to be more lucrative than cocaine.

“We have also seen people who deliberately import substandard and fake drugs. Some import tablets in nylon bags with no labels, then bring them here, repackage them, and put labels on them for sale. We saw a lot of it. We also found medicines that had been banned as far back as 2007, yet people are still stocking them.

“Many of these drugs were banned because they cause cancer, and new replacements were produced, but people still stock them. That is wickedness. Another category is unregistered drugs. These medicines are usually displayed in small quantities on counters, but large caches of them are stored in warehouses outside the market.”

Iluyomade noted that even some genuine drugs are stored in ways that cause them to lose their efficacy and become harmful long before their expiration date.

“Drug storage is also a problem. There is no ventilation in any of the storage facilities we visited. Medicines are supposed to be kept under specific conditions to maintain their effectiveness. Medicines are chemicals, and even those selling registered original medicines have had them expire long before their expiry dates.

“All the storage facilities are packed to the brim, locked with the biggest padlocks, and left without ventilation. We found a drug for women in labor stored in the plumbing materials market. The warehouse was full and hot, yet the drug’s packaging specified that it should be stored between 2-8 degrees centigrade. But someone stored it in an oven-like environment. So when people say, ‘What about those of us selling good medicine?’ we just laugh. What good medicine are you selling?

“We must take our healthcare delivery seriously, and that is what NAFDAC is doing. As an agency, we are not out to make life difficult for you, but we are working with the mandate given to us.

“We have pasted notices on some shops, and those who find them must know they have been invited and must report to our office. The markets will be reopened tomorrow. We have met with your union leaders, and they must ensure they report any suspicious activity to us.

“If this happens again, we will still close the market. Also, we will not tolerate any attack on our officials. If it happens again, we will shut down the market.”

Iluyomade stated that although the market will reopen on Friday, about 4,000 shops will remain locked until their owners explain certain drugs found inside.

Market union leaders expressed happiness about the reopening of the markets and pledged to work with the agency to identify traders who continue to deal in illegal drugs.

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