Author Archives: Mr. Toyin Olaogun

The Central Bank of Nigeria has restricted the acquisition of controlling stakes in financial holding companies in the country in its corporate governance guidelines.

The CBN said this in a circular to all commercial, merchant, non-interest and payment service banks, and financial holding companies titled ‘Corporate Governance Guidelines’, and signed by the Director, Financial Policy and Regulation Departmen, Chibuzo Efobi,.

The new guidelines stated that investors would need prior approval from the CBN before they could acquire majority stakes in holdcos.

In Section 19, which dealt with the protection of shareholders, the new guideline said, “Except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one FHC.

“Except with the prior written approval of the CBN, no FHC or any of its director, shareholder or agent shall enter into an agreement which results in: a change in the control of the FHC, the transfer of shareholding of five per cent and above in the FHC; and/or an increase in shareholding to five per cent or more in the FHC.

“Provided that CBN’s prior approval and No Objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five per cent and above: the sale, disposal or transfer of the whole or any part of the business of the FHC; the acquisition or merger of the FHC; the reconstruction of the FHC; or the employment of a management agent, management by or transfer of its business to any such agent.”

The section also added that subsidiaries of an FHC were prohibited from acquiring shares in its FHC and/or other subsidiaries within the Group.

According to the CBN, the new rules were meant for commercial, merchant, non-interest, and payment services banks in Nigeria; and the Corporate Governance Guidelines for Financial Holding Companies in Nigeria.

Access Bank Plc and Standard Chartered Bank have entered into agreements for the acquisition of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its consumer, private and business banking business in Tanzania.

Each transaction remained subject to the approval of the respective local regulators and the banking regulator in Nigeria.

A statement said the announcement was made on Friday at Standard Chartered’s Headquarters in London, in the presence of senior representatives from both banks, and signed by, the Regional Chief Executive Officer, Africa & Middle East, Standard Chartered, Sunil Kaushal, and the Group Managing Director, Access Bank Plc, Roosevelt Ogbonna.

The statement said, “The agreement with Access for the sale of the bank’s business in Sub-Saharan Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale.

“Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients in the Standard Chartered businesses across the five aforementioned countries.

“Access and Standard Chartered Bank will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months.”

Commenting on the agreement, Kaushal, said, “Following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the five markets and the furtherance of a partnership with Access Bank.

“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients.

Commenting on the agreement, Ogbonna stated, “We are pleased to sign this agreement today and express our appreciation for being selected as the preferred partner to Standard Chartered Bank through this transaction, in which it is exiting four African markets and refocusing in one.

“As a distinguished regional and international bank with a rich heritage spanning over 150 years, Standard Chartered Bank has built a solid presence in these markets for over 100 years.”

The market capitalisation of Champion Breweries increased to N32.9bn in the 2022 financial year, as the company’s operating profit grew to N2.3bn during the same period.

This was disclosed by the company’s Chairman, Dr Elijah Akpan, at the 47th Annual General Meeting of the firm in Lagos.

Akpan said the success represents a remarkable increase and underscores the market’s recognition of the company’s value and potential.

“I’m pleased to inform you that Champion Breweries experienced significant growth in market capitalisation during 2022. At the end of the year, our market capitalisation stood at N32.9bn, compared to N18.4bn at the end of the previous year,” he said.

He said Champion Breweries’ operating profit experienced significant growth, rising to N2.3bn, with profit after tax increasing to N1.58 bn. This, according to Akpan, was attributable to the increase in revenue by an additional N2.7bn, compared to the previous year.

“This growth in revenue reflects the successful execution of business strategies, market demand, and potentially expanding customer base. It also indicates improved operational efficiency, effective cost management and demonstrates the company’s ability to generate sustainable profit and create value for its stakeholders.” Akpan stated.

Looking ahead, he said, “The recent fuel subsidy removal will have an adverse effect on consumer purchasing power. As the subsidy is removed, the price of PMS will increase, putting additional pressure on consumers’ budgets and potentially affecting their ability to spend on other goods and services. We will remain proactive in navigating any uncertainty and leveraging opportunities to drive sustainable growth and value for our shareholders,” he said.