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Fidelity Bank Plc announces growth in Gross Earnings and Profit before Tax

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Financial Highlights

* Gross Earnings increased by 13.6% to N71.9bn from N63.3bn in H1 2014
* Net Fee Income increased by 25.9% to N15.2bn from N12.1bn in H1 2014
* Operating Income increased by 14.1% to N42.0bn from N36.8bn in H1 2014
* Total Expenses increased by 13.8% to N28.8bn from N25.3bn in H1 2014
* Profit before Tax increased by 2.5% to N9.7bn from N9.4bn in H1 2014
* Profit after Tax increased by 2.5% to N8.2bn from N8.0bn in H1 2014
* Net Loans increased by 5.8% to N572.8bn from N541.7bn in Dec 2014
* Deposits declined by 2.9% to N796.6bn from N820.0bn in Dec 2014
* Total Equity increased by 3.1% to N178.6bn from N173.1bn in Dec 2014
* Total Assets increased by 0.5% to N1,192.7bn from N1,187.0bn in Dec 2014

 

Nnamdi Okonkwo, Managing Director and CEO of Fidelity Bank plc commenting on the results, stated that:
“Business operations in H1 2015 were challenged by a difficult operating environment due to heightened political risks in Q1, weaker government revenues arising from lower crude oil prices, a tighter monetary policy environment and currency devaluation concerns which all translated to a significantly lower GDP growth rate.

Despite these challenges we continued with the disciplined execution of our medium term strategy (albeit taking into consideration the weaker macro-economic environment). Profit before Tax (PBT) increased to N9.7bn despite significantly increased loan provisions anchored on our conservative view of selected sectors. We are pleased with the year-on-year (y-o-y) and quarter on quarter (q-o-q) growth in our profitability given the reduced level of business activities in H1 2015.

Net Interest Income increased by 8.3% y-o-y to N26.8 billion and 16.7% q-o-q as we increased yields on earning assets faster than the growth in funding costs. This increased our NIM to 6.6% in H1 2015 placing us closer to our 2015 target of 7.0%. Net gains on financial instruments was N1.1bn in Q2 against a loss of N1.5bn in Q1 as we continued to optimize our balance sheet.

Net Fee Income increased by 25.9% y-o-y to N15.2 billion but declined by 25.6% q-o-q due to lower FX Income on the back of trading restrictions in the market. Our retail strategy continued to deliver increased revenues as electronic banking income increased by 65.2% y-o-y to N2.0 billion and 37.4% q-o-q driven by the increased migration of customers to our electronic channels and improved customer experience.

Operating Expense grew by 13.8% y-o-y to N28.8 billion and 8.4% q-o-q on the back of increased staff remuneration and promotions, regulatory costs (NDIC/AMCON) and advert costs. However, Cost-Income Ratio declined to 69.2% in H1 2015 from 74.2% in the 2014FY as revenue growth outpaced the increase in operating cost.

Loan growth picked up in Q2 (5.8% YTD growth) with the conclusion of our N30 billion bond. Cost of Risk increased to 1.1% (slightly above our guidance) as we improved our coverage ratio, NPL Ratio remained within our guidance at 3.7% due to the growth in the loan book.

Total Deposits declined by 2.9% YTD to N796.5 billion and 0.1% q-o-q as tighter monetary policy and the CRR harmonization increased effective funding costs. With Private Sector Depositors accounting for 87% of our deposits, we sterilized an additional N21 billion due to the CRR harmonization. Though Interest expense increased by 9.1% y-o-y, it declined by 1.9% q-o-q due to the diversification of our funding sources.

We remain focused on the execution of our medium term strategic objectives in the Retail/SME/E-Banking and Niche Corporate Banking segments and look forward to delivering another positive set of results in the next quarter”

 

ANALYSTS AND INVESTORS CONFERENCE CALL INVITATION

Fidelity Bank Plc Senior Management would be hosting a Conference Call with Investors/Analysts on the H1 2015 Unaudited Financials on Monday, July 27, 2015 at 15.00 hours Lagos Time / 15:00 BST / 14:00 GMT. There will also be an opportunity for management to take questions from Investors .

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House Of Reps committee indicts oil firms for tax evasion….

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….As FIRS rejects allegations by the House Committee that he is not doing enough to recover outstanding taxes and bring evaders to book..

 

The House of Representatives ad hoc committee investigating the Structure and Accountability of Joint Venture (JV) Business and Production Sharing Contract (PSC) of NNPC has indicted several oil companies for alleged tax evasion to the tune of trillions of naira.

The committee also blamed and seek the prosecution of the Chairperson of the Federal Inland Revenue Service (FIRS), Mamman Nami, for allegedly not doing enough to recover the outstanding taxes from the oil companies, a charge the FIRS boss rejected, saying his agency is working hard to bring all tax evaders to book.

Responding to the allegations levelled against his boss by the committee, the spokesperson for the FIRS chairperson, Johannes Oluwatobi Wojuola, described the claim as untrue, telling PREMIUM TIMES the tax agency is investigating and prosecuting several tax offenders.

According to the report obtained by the News Agency of Nigeria (NAN), investigation by the committee span 1991 till date with alleged tax evasion running into trillions of naira.

The report is expected to be laid before the lawmakers this week.

The ad hoc committee investigation, chaired by Abubakar Fulata, revealed that the JVs and PSCs of NNPC sold Nigerian oil at lowest cost to their own subsidiaries in a ”tax haven”.

The committee alleged that the company subsequently sold the same oil to other buyers at full price, while inflating the cost of their Nigerian production operations and under-reporting the volume of oil they produced.

This, apart from outright circumvention of the Nigerian tax laws, the committee said is abusive and contrived tax avoidance scheme to minimise their tax liability.

The ad hoc committee is praying the house to adopt the recommendations with a view to bringing sanity in the oil and gas operation in Nigeria.

This according to the report of the committee would be a greater benefit to the citizens.

The committee report also showed that all international and national oil companies who enjoyed capital allowance in Nigeria had no Certificate of Acceptance of Fixed Asset (CAFA) as prescribed by the Industrial Inspectorate Act.

The report, however, said all oil companies that benefited from capital allowance without obtaining CAFA as prescribed by the Industrial Inspectorate Act be made to refund all the monies to the government treasury.

NAN reports that on 1 November, 2022 the House ad hoc committee investigating the structure and accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCS) of the Nigerian National Petroleum Limited began probing oil companies accused of tax evasion.

The probe was at the backdrop of alleged tax evasion by some oil companies operating in Nigeria, which led to the constitution of the committee by Speaker Femi Gbajabiamila.

Mr Fulata, at a meeting with stakeholders in the oil and gas industry, cited relevant sections of the 1999 Constitution as amended.

“This committee is relying on Section 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria as amended and we are asking heads of agencies who failed to forward their submissions to do so.

“This committee cannot fail in its mandate and we might resort to the use of Police and other security agencies to compel heads of agencies to do so.”

Mr Fulata decried that tax evasion by oil companies, particularly the International Oil Companies (IOCs) has negatively affected the revenue for the country.

Mr Fulata has expressed disappointment that several letters of invitation sent out to some organisations were not responded to, revealing that those who responded did so shabbily.

NAN reports that on 16 November, 2022, the house committee summoned the chairman of the FIRS.

The representatives of the FIRS, a director and special assistant, were not permitted by members of the committee to make presentations as they insisted that only the chairman is expected to speak on behalf of the agency.

The FIRS representatives had earlier told the committee that the service does not have access to the Stock Certificate of crude oil being lifted.

The representatives said the tax agency only relied on the invoice produced and presented to it by the oil companies. The committee then described the arrangement as ridiculous.

(NAN)

 

 

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Dapo Abiodun, Amosun Trade Words Over Dangote Refinery Siting In Lagos

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Ogun State Governor, Dapo Abiodun and his predecessor, Ibikunle Amosun have traded blames over the siting of the Dangote Petroleum Refinery and Petrochemical Plant at the Lekki Free Trade Zone in Lagos State.

The refinery with capacity to produce 650,000 barrels per day which is owned by Africa’s richest man, Aliko Dangote was inaugurated on Monday by President Muhammadu Buhari and four other African Presidents.

A chieftain of the Peoples Democratic Party (PDP), Segun Sowunmi reportedly blamed the Ogun State Government for losing the siting of the behemoth Dangote Refinery to neighbouring Lagos State.

Interestingly, both Amosun, who was the Ogun State governor from 2011 to 2019; and Abiodun who has been the governor since 2019, attended the inauguration of the refinery.

The two politicians are members of the All Progressives Congress (APC) but operate from opposing camps in the state with Amosun preferring another candidate over Abiodun who won his re-election in the March 2023 poll.

‘Amosun Frustrated Dangote’s Efforts To Locate Refinery In Ogun’
In a statement, Abiodun’s Chief Press Secretary, Kunle Somorin said it is painful that the huge investment that should have accrued to the state was lost, especially when the mega project had been initially planned to be located at the Olokola Free Trade Zone, in the Ogun Waterside Local Government Area of the state.

“In truth, everyone knows that Segun Sowunmi is referring to the immediate past governor, Ibikunle Amosun, as the man who frustrated the efforts to locate the refinery in Ogun State.

“We are all aware that the penultimate administration made appreciable and concerted efforts to ensure that the Olokola deep sea port and other ancillary projects in the OKFTZ, become a reality, by rallying major players in the oil and gas sector, including Dangote Group.

“The present governor, Dapo Abiodun, served as the Chairman of the Committee on the Olokola Free Trade Zone projects during the first term of the immediate past governor,” the statement partly read.

Dangote Took Business Decisions — Amosun
However, Amosun, in a counter-statement by his media office signed by Bola Adeyemi, said the Olokola Free Trade Zone project was not solely owned by the Ogun State Government.

He noted that Dangote took a business decision by siting the refinery in Lagos after initial consideration for the Olokola Free Trade Zone.

“From its conception in 2007, it was a Joint Venture. The Federal Government of Nigeria owned the majority 51%, Ondo State Goverment (14.5%), Ogun State Goverment (14.5%), and strategic core investors (20%). Alhaji Aliko Dangote, according to the information availed us when we took office, subsequently bought, and took over the 20% equity of the core investors,” the statement partly read.

“Ogun State was a minority equity stakeholder only, without proprietary strength and capacity to take sole decisions on the Joint Venture enterprise.

“As mere holder of 14.5% equity interest, it is most uncharitable for anyone to churn out lies that Ogun State was in a position to unilaterally frustrate the project or was responsible for the logjam.

“With respect to all sides, it accords more with logic to appreciate the fact that Alhaji Aliko Dangote took business decisions of his own in accordance with the goals of his business strategy and risk assessment.

“No amount of concocted lies, blackmail and orchestrated falsehood will blight these unparalleled facts.

“It is, therefore, interesting to read that the present Ogun State governor holds me responsible for allegedly scuttling the Olokola project.”

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FrieslandCampina WAMCO DDP Revolution Delivers Nigeria’s First Girolando Crossbreeds

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FrieslandCampina WAMCO DDP Revolution

Delivers Nigeria’s First Girolando Crossbreeds

 

FrieslandCampina WAMCO has announced the successful crossbreeding and birth of 25 Crossbreed Girolando calves achieved locally across various farms in Oyo, Ogun and Kwara states, thus spearheading a production revolution and transformation of Nigeria’s dairy sector.  

 

The announcement made by the dairy company’s Executive Director, Corporate Affairs, Ore Famurewa, explained that the Girolando breed is a composite of ‘Milking Gir’ from Brazil and Holstein Friesian from the Netherlands and has produced tremendous results for many decades in Brazil, leading to its transformation to a world power in dairy production. 

 

“In addition to having a high milk yield, the Girolando breed is heat-tolerant, tick-borne disease resistant and possesses other characteristics ideal for production in tropical countries like Nigeria. The Girolando calves are the first generation of a new high milk producing breed in Nigeria” Famurewa said.

 

FrieslandCampina WAMCO continues to contribute to the development of the dairy sector and national food security through its Dairy Development activities and partnerships such as the Value4Dairy Consortium.

 

Launched in April 2021, the Value4Dairy Consortium made up of four strategic partners namely FrieslandCampina WAMCO (Nigeria’s foremost dairy Company), URUS (the largest cow genetics company in the world), Barenbrug (a leading grass seed company) and Agrifirm (a leading feed and supplement company in the Netherlands).

 

The consortium is making progress in implementing sustainable strategies to fast-track growth and development of the Nigerian dairy sector, with proven track records in various agri-related value chains.

 

Two partners of the Consortium, FrieslandCampina WAMCO and URUS Group LP, the global leader in cattle breeding and dairy herd management programs, selected the Girolando breed for introduction to Nigeria and subsequently signed an agreement with a local breeding farm-SMAP Farms Limited. The strategic partnership will maximize success in crossbreeding and increased milk yields on local farms in a sustainable way.

 

In 2022, 1400 Girolando semen straws were produced and 610 artificial inseminations achieved, and 25 Crossbreed Girolando calves have been birthed till date. FrieslandCampina WAMCO sees this key milestone achievement as an important step to give smallholder farmers access to affordable good yield dairy cows in Nigeria.

 

FrieslandCampina WAMCO and other partners of the Value4Dairy Consortium remain committed to providing scalable solutions to agri-related challenges in the Nigerian dairy sector. 

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