Shareholders of Union Bank of Nigeria (UBN) on Tuesday endorsed the proposed reduction of N54.4 billion from the bank’s share premium account aimed at restructuring its balance sheet for optimal performance.
They gave the approval at the bank’s Extra-Ordinary General Meeting (EGM) held in Lagos.
Mr Cyril Odu, the bank’s Chairman, said that the company’s financial position, as of Dec. 31, 2018, showed a deficit of N54.458 billion, representing accumulated permanent losses from legacy transactions.
Odu said that the bank’s Board of Directors proposed the Share Premium Reduction in accordance with Sections 106 and 107 of the Companies and Allied Matters Act (CAMA) to offset the negative retained earnings.
He said; “The transaction, which was subject to confirmation by the Federal High Court, would have no impact on the bank’s creditors or its shareholders’ funds.
“Instead, it was expected to pave way for the payment of dividends to shareholders.’’
Odu said that the bank’s major focus was to deliver value to its stakeholders.
He said: “Union Bank is on course toward delivering its 2019-2021 strategic objectives.
“As we continue our push toward being Nigeria’s most reliable and trusted banking partner, we remain focussed on improving profitability of our business and delivering value to all our stakeholders, customers, business partners and employees.”
Zimbabwe’s mth/mth inflation falls to 21.04 % in July
Harare, Aug. 21, 2019 Zimbabwe’s month-on-month inflation rate fell to 21.04 per cent in July compared to 32.96 per cent the previous month as prices of basic goods increased at a slower pace, statistical agency ZIMSTATS said on Wednesday.
Finance Minister Mthuli Ncube on Aug. 1 suspended the publication of year-on-year inflation figures until February 2020 because adoption of a new currency had impacted the base for calculating the consumer price index.
Annual inflation hit 175.66 per cent in June, the highest rate since runaway money-printing and associated hyperinflation forced the country to abandon its currency in 2009. (Reuters/NAN)
NDIC signs MoU with Korean counterpart to strengthen deposit insurance
The Nigeria Deposit Insurance Corporation (NDIC) has signed an agreement with the Korea Deposit Insurance Corporation (KDIC) to strengthen the Deposit Insurance System (DIS) in their respective jurisdictions.
In a statement on Wednesday, the spokesman of NDIC, Mr Mohammed Ibrahim, said the signing was done at the KDIC headquarters in Seoul, the South Korean capital.
Ibrahim said the Memorandum of Understanding (MOU) covered a wide range of issues intended to enhance the protection of banks’ depositors.
He listed some areas covered by the MoU as promotion of communication, enhancement of existing cooperation, provision of support and mutual understanding as well as collaboration.
These, according to him, is necessitated by the “increasing globalisation and complexity of large financial institutions and the unique challenges they pose for regulatory authorities.”
“The MOU also provides for effective international working relationship between both agencies along with the enhancement of their roles in financial regulatory initiatives and policy deliberations.
“There will also be periodic exchange of staff between both institutions and bilateral meetings on regular basis.
“This is to enhance mutual understanding that promotes development of the DIS in both Nigeria and South Korea,” he said.
Ibrahim said the Chairman of KDIC, Mr WI Seongbak, and the Managing Director of NDIC, Mr Umaru Ibrahim, signed for their respective bodies.
Monarch urges Nasarawa Govt on devt of his community
Alhaji Usman Abdullahi, the Ohimege Opanda in Nasarawa State, has appealed to the state government to provide Toto Local Government area with basic infrastructure to boost socio-economic and agriculture in the area.
This, he said, would enhance the standard of living of residents and overall development of the country.
Abdullahi, a first class traditional ruler, made the call on Wednesday during an interview with the Nigeria News Agency in his palace in Umaisha in Toto Local Government area of the state.
He said that provision of infrastructure was key to the development of every society, hence the need for the state government to provide roads, schools, electricity and other amenities in the area.
The Igbura traditional ruler said that the provision of basic amenities would also attract investments to the area, thereby creating jobs opportunities and boosting their revenue base.
“I want to use this medium to appeal to the state government to link our area with Kogi State with road to improve on our standard of living and to boost our socio-economic activities.
“Look at Toto Local Government, we are not developed; no electricity, no good portable water, no good roads, among other social amenities.
“We also want the government to establish a higher institution in this area in the interest of the education of our children and other Nigerians considering the importance of education to the development of the society.
“If these are done,it will go a long way in bringing in development, boosting agricultural activities, thereby improving on our standard of living,” Abdullahi said.
Abdullahi also called on his subjects and other Nigerians to pray and support leaders at all levels to enable them succeed in the tasks ahead of them.
“I want my people and Nigerians at large to pray for leaders at all levels as prayer is key to success. Our leaders need our prayers and support to succeed while discharging their duties.
“So, I want my people to give their maximum support and cooperation to President Muhammadu Buhari, Engr.Abdullahi Sule and other leaders to succeed so that they will bring us more dividends of democracy, “he said .
The first class traditional ruler enjoined his subjects and Nigerians to live in peace, be law abiding and respect constituted authorities for the overall development of the country.
Gov. Ishaku disburses N500m for devt. projects in 50 communities
LAPO microfinance, deliberate concept to challenge poverty in Nigeria – Ehigiamusoe
The Managing Director, Lift Above Poverty (LAPO) Microfinance Bank, Mr Godwin Ehigiamusoe, on Tuesday said the bank would not relent in its vision of financing Nigerians in need to end poverty in the country.
Ehigiamusoe made this known at a media chat organised by the microfinance bank in Lagos.
Nigeria News Agency reports that the chat was held to commemorate the bank’s 32 years of existence and to reiterate the bank’s continuous commitment to Nigerians.
“LAPO was established in 1987 to assist low income earners and grant low interest loans to Micro, Small and Medium Enterprises (MSMEs)
According to the bank’s boss, a prudent methodology of extensive networking enabled the bank to reach its over four million Nigerians with 495 branches in the country.
He said, “LAPO Microfinance Bank had a humble beginning that kicked off in 1987.
““In 1986, General Ibrahim Banbagida adopted Structural Adjustment Programme (SAP).
“Its central components were devaluation of the national currency, gradual removal of subsidy, liberalisation of export and rationalisation of workforce in public service.
““The cumulative effect of these measures was an increase in spread of poverty level.
“”This was the exact scenario in 1986 in Ogwashi-Uku, Delta, where I gave N100 each to three women namely, Mrs Felicia Monye, Mrs Monica Igwebuike and Mrs Obiageli Nwoko.
“”This was the scenario that berthed LAPO microfinance bank.
“The name LAPO was a product of deliberate thought because I conceptualised poverty as an Octopus with the tentacles of material deprivation, poor health and social exclusion.”
Speaking on some of the bank’s achievements, Ehigiamusoe said the financial institution partnered Lafarge Cement Company and African Development Bank (AfDB) in 2013 to pioneer affordable housing programme in the country.
““Because of the veritable achievements, LAPO won a Grameen foundation award of excellence in 2006 with the crash prize of $10,000.
““The $10,000 was used as seed fund for a scholarship scheme for children of our clients.
“As we speak over 3,000 children have benefited from the scheme,” he said.
Speaking on the bank’s financials for 2018, Ehigiamusoe said the cumulative loan of the bank as at December 2018 stood at N137 billion and total deposit of N14 billion in the same financial year.
He said the Profit after Tax (PaT) of the bank stood at N2.8 billion at the same period.
The bank’s boss said the bank had 1,273 agents in over 30 states in the country .
Edited by Donald Ugwu