Connect with us

Business

Doing Business in Nigeria: Interswitch Founder reiterates need for focus on business’ unit economics

Published

on

As Nigeria, arguably one of the principal economic powerhouses of Africa, continues to attract global attention against the odds as a destination which cannot be ignored for investment and business opportunities, the 2024 edition of the ‘Doing Business in Nigeria Conference’ which held on Saturday 13th April in Lagos, the nation’s commercial capital served as a pivotal event for entrepreneurs, investors, and business leaders seeking to tap into the country’s vibrant business landscape. Delivering a keynote on the theme ‘Doing Business in Nigeria: The Opportunities, Challenges and Realities’, Interswitch Group Founder and Chief Executive Officer, Mitchell Elegbe set the tone for deliberations at the conference, sharing robust insights and perspectives hinged on over 22 years operating in Nigeria, from where the company has expanded into other African markets, being in the driver’s seat of one of Africa’s most influential digital technology businesses. Among other incisive pointers, Elegbe walked participants through the dynamic trajectory of Interswitch’s business operations, starting from 2002 when key infrastructural elements such as power and telecoms were at a nascent stage. The Interswitch Founder acknowledged that Nigeria is probably not one of the easiest markets in the world to do business, however stressing that compelling business opportunities exist only where there are challenges, pointing out that regardless of the challenges and constraints in the local operating environment, some particular industries and sectors have consistently bucked the trend and shown great promise. In his view the performance of these outliers is attributable to factors such as the ability to adapt and innovate within the local market hinged on pragmatism and nimbleness, understanding of consumer behaviour and agile responses to changing business landscapes. According to Elegbe, who set things in context through the lens of fintech businesses, there are significant differences between the typical Silicon Valley business model and what is necessary for sustainable success in a market like Nigeria, particularly in the current global investment climes. In his words, operating in the Tropical Savannah that Nigeria is, as he described it, warrants the business to ensure products/services are designed to meet people at their points of need, whilst essentially ensuring proof of concept, focus on unit economics and scaling to achieve volumes in spite of thin margins, with a view to driving profitability as an early priority. He emphasized that Unit economics are instrumental in evaluating the economic sustainability and profitability of the business model, providing insights into whether the business is generating sufficient value to justify the associated costs. Other keynotes were delivered by Wole Adeniyi, The Chief Executive Officer, Stanbic IBTC Bank, who was represented by Olu Delano, Executive Director for Personal and Private Banking as well as Binta Max-Gbinije, Chief Executive, BMG Seven Limited, each bringing unique perspectives and expertise to the discussions. The conference agenda was thoughtfully curated to address key themes and topics relevant to doing business in Nigeria, with sessions covering market entry strategies, regulatory compliance, risk management, investment incentives, innovation, and sustainability, among other salient themes. Beyond the informative sessions and workshops, the Doing Business in Nigeria Conference 2024 provided platforms for networking and collaboration, including a business pitch session targeted at emerging entrepreneurs.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

EcoBank faces $68m legal suit in UAE over alleged defamation, abusive proceedings

Published

on

By

EcoBank Nigeria, its parent companies and leadership are facing a legal suit in the United Arab Emirates (UAE) on allegations of defamation, abusive proceedings and coercion in Nigeria.

The $68 million legal claim in the UAE was filed against Jeremy Awori, CEO of Ecobank Transnational Inc (ETI); ETI Specialized Resolutions Company (ETISRC); Ecobank Nigeria (ENG); and Oladele Alabi, Managing Director of ETISRC.In the publication of notice of service sighted by Ripples Nigeria, the plaintiffs urged that “the Defendants be ordered jointly and collectively to pay AED 249,155,925 with the legal interests at the rate of 12% p.a. from the claim date until full payment.”The defendants are alleged to have attempted to coerce Wilben Trade and its CEO, Marcus Wade, into making substantial undue payments to ENG and ETISRC following a loss suffered in 2015. “Over the last two years, accusations made by ETISRC, led by Oladele ‘Dele’ Alabi and ENG, have caused significant distress and reputational and financial harm to Wilben Trade”, the court filings stated.

According to findings, in 2015, ENG reportedly suffered losses exceeding $42 million from two transactions with its existing customer, Agrico Agbe Limited and its associate company, Little Rose Trading LLC. Findings further suggest, that at Ecobank’s request, Wilben Trade was reportedly brought into the transactions solely to provide an intermediary service and discount Letter of Credit issued by Ecobank and had no other involvement.

Following multiple failed attempts to recover losses from the original customers and those directly responsible, ETISRC turned its focus to Wilben Trade. However, legal counsel to Wilben labeled the defendant’s action as “an extortion attempt”.In 2022, ETISRC escalated its actions, filing a report with the Nigeria Police Force through legal practitioners Wigwe & Co. The report alleged that Wilben Trade had improperly received $42,485,900 from EBN and had engaged in “Conspiracy and Fraudulent Conversion”. But Wilben Trade contended that the allegations are baseless and were allegedly fabricated by Oladele Alabi, Managing Director of ETISRC, the ETI subsidiary responsible for the complaint, “as a result of the ability of powerful private interests to instrumentalize public institutions and resources in Nigeria”, he said.

This latest legal action in UAE underscores Wilben Trade and Marcus Wade’s commitment to protecting its reputation and seeking redress for the significant distress and damages said to have been inflicted by these allegations.Speaking on the matter, Lateef Omoyemi Akangbe SAN, Partner, Sofunde Osakwe Ogundipe & Belgore Legal Practitioners, commented: “In addition to taking action in Nigeria, our client is pursuing international legal action to address Ecobank’s abusive tactics and repair the ongoing damage caused to our client by Ecobank’s improper use of public institutions to pursue its baseless complaints against our client.“Despite repeated appeals for constructive dialogue to address these issues and end the misconduct, Ecobank has refused to engage meaningfully.”

Ripples Nigeria sighted legal correspondence indicating that ETI leadership had been made aware of this issue since August 2023, as well as efforts aimed at finding an amicable resolution to avoid legal disputes that have emanated.Responding to Ripples Nigeria’s inquiry on the latest suit filed against it and it’s leadership, Ecobank it cannot comment on a case that is before courts in Nigeria and in India.

The bank also stated that ETI is not a party in the suits, even as it denied all allegations of extortion pertaining to the matter.“Please note that the issue you referenced is currently the subject of litigation in Nigerian and Indian courts, in connection with an established case of fraud perpetrated against the Ecobank Group (Ecobank) by individuals currently being prosecuted by the appropriate authorities in Nigeria. As a result, Ecobank is unable to provide any comment on this matter at this time.“It is important to note that while Ecobank Transnational Incorporated (the holding company of the Ecobank Group) is not a party to the ongoing litigation, Ecobank denies all allegations of extortion pertaining to this matter”, the bank told Ripples Nigeria.

It would be recalled that Ripples Nigeria had earlier reported the legal web of intricacies between the Central Bank of Nigeria (CBN), Ecobank Nigeria (ENG) and Ecobank Transnational Inc. Specialized Resolutions Company (ETISRC) as well as Wilben Trade (Wilben), and its CEO, Marcus Wade.The report highlighted how the CBN had received and acknowledged a petition against ETISRC and ENG but later tagged a release by the petitioners as fake on its official X (formerly Twitter) handle.The CBN thereafter attracted the ire of a lawyer and Senior Advocate of Nigeria (SAN) over its comment around the petition which accused ENG and ETISRC of wrongdoing in a matter also involving Wilben, and Wade.

The report highlighted how the CBN had received and acknowledged a petition against ETISRC and ENG but later tagged a release by the petitioners as fake on its official X (formerly Twitter) handle.The CBN thereafter attracted the ire of a lawyer and Senior Advocate of Nigeria (SAN) over its comment around the petition which accused ENG and ETISRC of wrongdoing in a matter also involving Wilben, and Wade.The solicitor to Wilben Trade, Lateef Omoyemi Akangbe (SAN) Partner, Sofunde Osakwe Ogundipe & Belgore Legal Practitioners, came down hard on the CBN and asked the apex bank to retrace its steps, and take down the denial post from all its social media handles, or face legal actions.

Akangbe had said: “Our attention has been drawn to social media posts from the Central Bank of Nigeria (CBN) on LinkedIn, Facebook, Instagram and X (formerly known as Twitter) branding a press release issued by us, on behalf of our client, as fake.“None of the content found in this release is fake or misleading. In fact, following a letter addressed to CBN on 22 July 2024 regarding the highly questionable conduct of Ecobank Nigeria, ETI Specialized Resolution Company Limited and its Managing Director, Dele Alabi, we received acknowledgment from CBN that the complaint had been forwarded to Ecobank, and that the outcome of engagement would be communicated to us as soon as possible”.

Culled

Continue Reading

Business

FBNQuest Asset Management Awarded Agusto & Co’s “A+” Rating

Published

on

By

Lagos, Nigeria, January 2025 – FBNQuest Asset Management, a subsidiary of FBN Holdings Plc., has been awarded an A+ rating by Agusto & Co. Limited. This rating reflects the firm’s stable outlook, robust risk management, and strong investment capabilities, highlighting its impressive operational performance and outstanding business profile. It emphasizes FBNQuest Asset Management’s ongoing commitment to providing exceptional investment services to its clients.The rating was issued in a recent report by Agusto & Co., a leading rating agency in Nigeria. This recognition underscores the company’s strong operational record, excellent corporate governance, and professional management of fund assets.The organisation’s impressive performance demonstrates its unwavering dedication to delivering exceptional value to clients through a variety of products and services tailored to meet their investment needs.Ike Onyia, the Managing Director of FBNQuest Asset Management, expressed his satisfaction with the rating, stating, “We are truly delighted to receive the A+ rating from Agusto & Co. This recognition is a testament to our strong expertise in investment portfolio management and the achievements we have realised over the years. We take pride in this positive acknowledgement, which stems from our well-thought-out business strategies and the exceptional performance of our skilled workforce, cementing our position in the hearts of our stakeholders.”FBNQuest Asset Management was also recognised as the Best Asset Manager at the 2024 EMEA African Banker Awards. The organisation continues to maintain a consistently strong position in the investment services subsector in Nigeria, leveraging its rich pedigree in intellectual capital, strong research capabilities, and cutting-edge technology to provide clients with value-adding insights, advice, and service.“Our mutual funds offer diverse investment options that enable the creation of unique and value-enhancing investment strategies for different client segments. Additionally, our range of mutual funds encompasses various asset classes, including equities, bonds, and money market instruments,” he added.Agusto & Co. is a Pan-African leader in credit ratings and credit reports, having assigned over 1,500 ratings across various sectors. Their ratings are globally recognised, with a broad client base relying on them as benchmarks to gauge business success.About FBNQuest Asset ManagementFBNQuest Asset Management is a leading asset manager in Nigeria for individual and institutional investors. A subsidiary of FBNHoldings Plc., it offers a range of investment products and services, with strategies spanning various asset classes and sectors.Offering specialist portfolio and fund management services, the firm manages investment accounts for high-net-worth individuals and institutional clients, including insurance companies, pension funds, public and private mutual funds, endowment, and charity funds, as well as segregated and special accounts. The firm guides its clients through Africa’s dynamic markets and identifies the best opportunities that shape their portfolios.

Continue Reading

Business

How First Bank’s Recklessness Almost Killed 93 Souls On Rig- Hydrocarbons

Published

on

By

RIGHT OF REPLY 2

PRESS STATEMENT FROM GENERAL HYDROCARBONS LIMITED

How First Bank’s Recklessness Almost Killed 93 Souls on Rig

It is not our intention to respond to every misinformation or inaccurate information put out by First Bank on the matter with GHL. We will respond to 3 points for clarity.

1.Diversion: First Bank keeps talking about diversion of funds by GHL without providing any evidence. Here are the facts. As we said before and will repeat now, all GHL contracts and invoices were vetted and paid by FBN through their Credit and Risk teams directly to ALL service providers. FBN’s repeated failures to pay on time within the contractual framework of 5 days which became up to 70 days or not at all, in a clear breach of its Tripartite Agreement obligations as captured below:The Bank shall, where GHL has satisfied all conditions precedent to disbursement under the Facility Agreement, disburse all of or part of the Facility Amount to GHL not later than 5 (five) Business Days aЯer GHL makes autilisation request in accordance with theterms of the Facility Agreement.This failure to pay GHL pending request as per above terms led to an international incident on October 7, 2023, when the drilling rig, Blackford Dolphin, ran out of fuel, food, water and other critical supplies with 93 souls on board, and the Rig was on the verge of declaring MAYDAY.The Managing Director and Executive Director of FBN were abroad and the current Managing Director, Olusegun Alebiousu, who was then the Chief Risk Officer (CRO), was acting for the Managing Director and GHL brought this matter to his urgent attention. He then worked the phone, calling Suppliers and Service Providers one after the other and promised payment within a 3 days. Based on FBN’s assurances, the Service Providers made emergency supplies, but the payment never came.To ensure safety of life and continuing security at 75KM Offshore Nigeria, GHL had to enter an Irrevocable Third-Party Payment Order with one of the Ofhakers to pay the suppliers directly, which stabilised the operation. FBN was later given evidence of the payments made.That is what FBN calls Diversion.We will meet FBN in court with Daily Reports and log details to debunk this continuing misinformation of diversion.GHL acted to save 93 souls, most of them foreign nationals, who had begun contacting their embassies and home governments, and to save Nigeria from an international incident offshore Nigeria.We are ready, willing and able to present the body of evidence to any court, including the continuing non-payment to Century FPSO and other service providers by FBN despite repeated demands in line with signed agreements.Indeed, we had to cough out our own cash as reflected in our audited financial statements to keep the project afloat or go to court to seek protective reliefs.

2. On abusing the Court process and failure to comply with a valid court order, FBN claimed they went to court on a different matter with regards to the Facility Agreement. But Justice Ambrose L. Allagoa, had given his judgement after hearing both sides on the Facility Agreement, amongst other issues on December 12, 2024. “That an order is granted, restraining the Respondent (FBN) either by itself, or acting through its servants, agents, assigns, privies, affiliates howsoever described, including any persons claiming under its authority from making any calls or demands, or taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of the Applicant (GHL) which have been charged as security for the facility agreements in respect of the Applicant’s operation of OML 120, including but not limited to the side letter, and the amended and restated agreements between the Applicant and the Respondent pending the hearing and determination of the arbitration proceedings between the Applicant and the Respondent brought pursuant to Clause 12(c) of the Agreement between the Applicant and the Respondent dated 29th May 2021.”FBN then went to Justice D Dipeolu of the same Federal High Court on December 30, 2024, with same lawyers, without disclosing this relevant judgment to the Learned Justice, to obtain a Mareva injunction Exparte freezing order against GHL and individual directors who never signed personal guarantees and thus not personally liable. Is this how a 130-year old blue chip financial institution committed to good governance and rule of law, should behave? Why the hurry to score cheap points to use on social media?If FBN was so sure of its facts why not put GHL on notice? Why an Exparte? We leave this to the Justices of the Federal High Court to decide on this matter and we will not make any further comment to avoid being subjudice.

3.Contrary to FBN’s claims, it sought to appoint an Independent Asset Manager to promote corporate governance. What it sought to do was to appoint a company that it can fire at any time to “take over GHL’s business, offices and operations within 90 days” of further disbursement. GHL refused and counter-offered a Joint Operating Committee with FBN and they refused, resulting in current impasse which they weaponised and made a public spectacle with their publication of their Exparte Mareva Freezing Orders. GHL had to stand its ground against such bullying.This 2nd Right of Reply has become necessary, again, in view of FBN’s continued misstatement but they have failed to debunk or deny the foundational material facts and seeking to eating their cake and having it. Luckily, FBN has not denied the Subrogation MOU and the benefits it got upfront from GHL’s intervention. They should meet their obligations and all will be well.

Thank you.

MANAGEMENT

Continue Reading

Trending

Mega Awareness 2023