Guaranty Trust Holding Company (GTCO) is preparing to write off a significant loan extended to Aiteo Group, an oil and gas firm, after several years of unsuccessful restructuring efforts.
The loan, GTCO’s largest forbearance issue, has posed a major challenge for the bank, with limited progress despite multiple attempts to renegotiate the terms.
During the bank’s 6-month investor earnings call, GTCO’s Managing Director and CEO, Segun Agbaje, confirmed that the loan would be written off by the end of 2024.
However, he emphasized that this move would not impact GTCO’s profit and loss statement due to substantial capital buffers already in place.
Agbaje acknowledged the frustrations surrounding the Aiteo loan, stating that despite restructuring, the loan has not performed as expected.
He expressed the bank’s readiness to turn the page by removing the loan from its books and pursuing aggressive recovery measures to reclaim the funds.
The Aiteo loan stems from a 2014 financing arrangement in which Nigerian banks, including GTCO, funded 75 per cent of the $2 billion loan used by Aiteo to acquire Oil Mining Lease (OML) 29 from Shell Petroleum Development Company.
However, Aiteo has faced ongoing legal and operational challenges, leading to loan repayment delays and legal battles. GTCO and other lenders have sought legal redress through UK courts, where they secured a favorable ruling in 2022.
Despite the setbacks, GTCO’s strong capital buffers, with over 50 n provisioned for Stage 2 loans, ensure the bank is well-positioned to absorb the loss. GTCO’s loan book currently stands at N3 trillion, with Aiteo representing a significant portion of its non-performing loans.
Agbaje suggested that the impact of the Aiteo loan would be less pronounced if the loan book were closer to N7 trillion, but affirmed the bank’s confidence in its ability to handle the situation without a major financial hit
Agbaje stated, “We’ve put ourselves in a position to write off that loan this year, and it won’t affect our P&L.”
GTCO has been transparent about the challenges it has faced with the Aiteo loan, with Agbaje expressing frustration at the lack of progress.
“It hasn’t gone the way we like, and I’m a bit tired of making excuses for it,” he said during the call, outlining the bank’s plans to move forward aggressively in recovering the funds.
“We’ll probably write off the Aiteo loan this year and then go aggressively on a recovery drive because we don’t like how it’s been playing out,” Agbaje stated.
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Zenith Bank extends rights issue, public offer by 2 weeks
By Amaka Ifeakandu
Lagos
Zenith Bank Plc has extended the deadline for its ongoing Rights Issue and Public Offering by two weeks.
With the extension the bank has joined the ranks of Access Holdings Plc and Fidelity Bank Plc whose offer had been extended earlier.
The bank initially planned to close its rights and public offer on September 9, 2024 but the acceptance period will now end on September 23, 2024.
The extension is in response to disruptions caused by nationwide protests that began on the same day the offer launched, impacting business operations and individual movement across the country.
The Rights Issue and Public Offer were introduced on August 1, 2024, just as nationwide protests commenced, resulting in severe interruptions to business activities and transportation.
These disruptions hindered many potential investors from participating in the offer as originally planned.
In light of this, Zenith Bank sought and received approval from the Securities and Exchange Commission (SEC) to extend the application period.
The bank’s decision to extend the deadline is aimed at providing ample time for shareholders and the public to participate fully in the offer, despite the unforeseen challenges posed by the protests.
Zenith Bank’s Rights Issue and Public Offer are part of its plan to raise an additional N290 billion in capital, which will be used to strengthen its operations, enhance market presence, and improve its balance sheet.
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Leverage technology to drive Nigeria’s STI, NOTAP DG urges stakeholders
By Binta Shama
Abuja
The Director General of the National Office for Technology Acquisition and Promotion (NOTAP) Dr Obiageli Amadiobi, has admonished stakeholders in the Science, Technology and Innovation (STI) ecosystem to leverage on technology and Intellectual Property Rights (IPR) to drive to foster Nigeria’s STI commercialisation.
Speaking at a press briefing to commemorate the ‘African Day for Technology and Intellectual Property,’ Amadiobi said Technology and Intellectual Property Rights system have long been recognized as the foremost important factor in nation building and wealth creation.
She said, “Ideas and knowledge are increasingly becoming veritable instruments in international trade relations as codified in the Trade Related Aspects of Intellectual Property (TRIPS) under the World Trade Organization (WTO) agreement to which Nigeria has been a signatory since January 1, 1995.”
According to the NOTAP boss, the commemoration demonstrates the great importance which the African nations place on Science, Technology and Innovation as an engine that drives development.
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Industry players storm Abuja for real estate summit
By Benjamin Umuteme
Abuja
Real estate investors, entrepreneurs, and ambitious individuals from across Nigeria and beyond are gearing up for the upcoming International Real Estate Investment Summit (IREIS).
The summit which is set to take place October 6, 2024.in Abuja is coming at a time when Nigeria continues to face economic challenges.
Analysts say savvy investors are recognizing the need to explore opportunities beyond the local market.
The IREIS aims to equip attendees with the knowledge and tools to expand their portfolios internationally, generate passive income, and build sustainable wealth.
The summit will feature globally renowned speakers and offer unique benefits to participants, providing them with the strategies needed to achieve financial freedom through international real estate investments.
According to CEO, EB Properties LTD, UK Real Estate and Wealth Creation Expert, Mr. Sunday Aderibigbe, the event is designed for highly motivated individuals aiming to pivot their finances and secure significant financial growth by tapping into the lucrative global real estate market.
Attendees are encouraged to register now and take advantage of the limited Early Bird discount, ensuring they don’t miss this life-changing opportunity.
“Don’t miss out on this chance to transform your financial future and join the big players in the global market,” Aderibigbe said.
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SEC assures adequate regulation to grow digital assets industry
The Securities and Exchange Commission has assured stakeholders in the Digital Assets space that it is ready to provide the necessary guidance that will grow the industry, create wealth for Nigerians and lead to economic growth and development.
Director General of the SEC, Dr. Emomotimi Agama, who stated this in Lagos weekend, said the Commission is willing to be patient in ensuring that the majority of interested participants are carried along.
“We need to be patient in getting everybody on board to be able to provide the guidance that is needed for us to grow this industry, we need to grow this industry together.
“Over 80 percent of our population are interested in this area and that is why the government is showing so much interest too. And if the government is interested in it, the government has a responsibility to protect the investors that will come into it.
Agama said due to the developmental role of the Commission, the SEC will develop the market while also ensuring that investors are protected adding that the Commission is stepping up its investor education mechanism to ensure that investors get the information they require to make informed investment decisions.
He said the SEC Nigeria’s Approach to Digital Asset Regulation recognises the potential of blockchain and digital assets to revolutionize the capital markets and that is why the Commission has introduced several measures to ensure that these innovations are harnessed responsibly.
However, beyond the obvious economic benefits, the SEC Boss said blockchain can drive significant social change, address difficult social issues, improve user experience and settlement speed and aid in financial inclusion and encourage creativity and innovation among others.
The SEC DG said blockchain enables real-time transactions and settlements, reducing the time and costs associated with traditional financial services. This can lead to a more efficient and inclusive financial ecosystem, benefiting both individuals and businesses.
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FG to create friendly environment for investment – Budget minister
By Amaka Ifeakandu
Lagos
The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has said the government will create a favourable environment for investments in Nigeria, highlighting the importance of the private sector as the engine of growth.
Speaking at a press conference on the commencement of the 30th Nigerian Economic Summit, the minister painted a picture of the country’s economic struggles, underscoring the urgency for reforms and collaborative efforts to alleviate the situation.
He said that the private sector will be the engine of growth of the economy, while the government will implement policies and regulations that promote a favourable business environment to achieve a high rate of investment and savings.
“The investment is necessary to create jobs and achieve the projected $1trillion economy, while structural barriers that constrain the vulnerable segment of the society from realizing their potentials are addressed.
“In this context, the Summit will among others:Set an economic policy agenda for a stable and accelerated economic growth, underpinned by sustainable and inclusive development; Deliberate an actionable framework for transformative political leadership and effective governance that builds the Nigerian state’s capacity to deliver dividends of democracy;
Build consensus on the imperatives for transforming Nigeria’s human capital into national productive and innovative capacity that creates a secure, stable and collective future for all; Identify pragmatic initiatives to challenge the impediments to growth and adopting a Bottom-Up approach to sub-national competitiveness that contributes to national economic growth and development,” he stated.
Bagudu, who was represented by the Permanent Secretary in the ministry, Emeka Obi, pointed out that the 30th Nigerian Economic Summit aims to address Nigeria’s pressing economic challenges by focusing on collaborative action for growth, competitiveness, and stability.
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