Omicron: Be prepared for ‘hurtful’ policies, Emefiele tells banks - Newstrends
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Omicron: Be prepared for ‘hurtful’ policies, Emefiele tells banks

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Central Bank of Nigeria's (CBN) governor Godwin Emefiele

•Urges financial institutions to enhance lending to boost growth

•CBN disburses N370bn targeted credit facility to households, MSMEs

•Sanwo-Olu commends bankers’ committee’s COVID-19 response

Following the renewed threat of the COVID-19 occasioned by the new Omicron variants, the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele has said banks should be prepared for policies that could upset their quest to make more profit for their shareholders.

Speaking in Lagos yesterday, he also appealed to members of the Bankers’ Committee to be prepared to lend their support to the country whenever the need arises as they did in the past under the umbrella of CACOVID.

This is just as he revealed that the CBN through its Target Credit Facility (TCF) had disbursed a total of N370 billion to households as well as micro, small and medium sized enterprises (MSMEs) in line with efforts to stimulate economic activities.

Emefiele said these at the 12th Annual Bankers’ Committee retreat with the theme: ‘Building Resilience for Economic Growth.’

The CBN had as part of efforts to cushion the devastating effects of the COVID-19 on households and firms introduced the TCF in March 2020, which has since attracted 800,000 beneficiaries till date with an outstanding of N30 billion still available for disbursement.

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“Yes, the economy is growing, inflation is moderating, we are beginning to see signs even in the midst of the third or the fourth pandemic, but I must say that whereas we see the green light at the end of the tunnel, I must say that the road ahead for us to get to the green light remains very rough.

“We will continue to crave your support to work with us because we will continue to come up with policies that in your own boardrooms you will find hurtful to your own quest to make more profit for your shareholders,” he said.

Emefiele who thanked members of the Bankers’ Committee said: “When COVID-19 broke, we called on the banks under the umbrella of CACOVID and the banking industry stood strong with the private sector and we did the little we could to help our country and to help our people to overcome the challenges of COVID-19.

“The banking industry constitutes a very important segment of the monetary policy and of government, even from textbooks that we have read in economics, banks constitute what we can call catalysts to growth in any economy.

“We called on you, we did several things appealing to you, it got to a point where I was beginning to appeal to say, look, how can we have a situation where the banking industry is growing, the banks are declaring profit but the economy is not growing well, or that our people are living in destitution and that it is not possible for us as bankers to live a comfortable life and yet in the midst of destitution and problems in our country.

“We did call on you and you rose to the occasion and you supported. I thank you, sincerely. I cannot say that central bank did this alone, everything that we have done since February 2020, realising your importance as a catalyst to growth in the economy has been with your support, I thank you.

“I must say, yes, the economy is growing, yes, inflation is moderating, yes, we are beginning to see signs even in the midst of the third or the fourth pandemic, but I’m most say that whereas we see the green light ahead of us at the end of the tunnel, but I must say that the road ahead for us to get to the green light at the end of the tunnel remains very, very rough.

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“We will continue to count that you rely and work with us to say that it’s not just about you making profit for your shareholders but it is also about you contributing to the growth of our economy even where there are some discomforts, you will play your part, stand strong and support the government and support the Central Bank of Nigeria to deliver a stronger and resilient economy.”

Also, Emefiele, while addressing participants at the retreat called on banks to enhance credit to critical sectors of the economy, stressing the need for the country’s Gross Domestic Product (GDP) to rise above five per cent annually, higher than its present average growth rate of 2.7 per cent.

Emefiele said: “Given our mandate to promote a sound monetary and financial system, and working with the fiscal authorities, the CBN took unprecedented measures to contain the effects of the pandemic on our economy and spurred increased productivity in key sectors.

“First, the CBN collaborated with the fiscal authorities to formulate strong policy support measures through the Economic Sustainability Plan (ESP) to restore stability and catalyse growth.

“In support of the recovery efforts, the bank deployed more than N3.5 trillion, which is about 4.1 per cent of Nigeria’s GDP, to support critical sectors including agriculture, manufacturing, healthcare, electricity, and construction. Other CBN policy measures that we took to help the economy recover included a reduction of the monetary policy rate from 13.5 percent to 11.5 percent to spur lending.

“The reduction of the interest rate on all CBN intervention loans from nine per cent to five per cent, extension of the moratorium on principal repayments for CBN intervention facility to March 2022, regulatory forbearance for banks to restructure loans to sectors severely affected by the pandemic and creation of a N400 billion TCF for households and small and medium enterprises. Of this, nearly N370 billion has been released to over 800,000 beneficiaries.”

Speaking further, the Emefiele also pointed out that a N1 trillion facility for local manufacturing and production in critical sectors of the economy was also established. On this, so far, 53 manufacturing, 21 agriculture-related, and 13 service projects had been funded from this facility.

In addition, he reiterated that a N200 billion healthcare intervention fund for pharmaceutical companies and healthcare practitioners was also established in the wake of the pandemic, to expand and strengthen the capacity of the country’s healthcare institutions and mobilise.

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Furthermore, he disclosed that the CBN mobilised key stakeholders in the Nigerian economy, under the Private Sector Coalition Against Covid-19 (CACOVID) team that raised N39.65 billion to tackle the scourge.

“Continued implementation of efforts to boost credit to productive sectors is required to sustain the recovery, quicken growth, and improve the livelihood of Nigerians.

“With population growth at about 2.7 percent annually, it is important that we continue to deploy measures that will enable our economy to attain faster and balanced growth rates of over 5 percent on an annual basis.

“In furtherance of these efforts and given current global realities, I enjoin and challenge this Bankers’ Committee Retreat to focus on fashioning out strategies to fortify the fabric of the Nigerian economy, boost growth and engender resilience especially to exogenous shocks.

“To spur growth, we will need to assess policy measures that can address subsisting imbalances and constraints to finance. This retreat should provide actionable steps to ensure that the Bankers’ Committee continue to make meaningful contributions to Nigeria’s growth and development,” he added.

Also, the CBN Governor outlined some of the policies the apex bank has undertaken in recent time to support the federal government in its job-creation as well as economic diversifican drive.

The he listed to include the 00 for 100 Initiative, under which targeted credit of up to N5 billion would be provided to 100 firms every 100 days.

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Selected firms would be those investing in Greenfield projects, significantly able to create employment opportunities, and use local raw materials. The initiative will also support firms producing goods for the export market.

“On the growth of the digital economy, the CBN is focused on building a robust payment system in Nigeria which is cheap, fast, efficient, and safe. With the growing pace of digitalisation globally, we will continue to leverage digital channels in fulfilling this objective.

“Reflective of the confidence in our payment system, between 2015 and 2020, about $700 million has been invested in firms run by Nigerian founders,” he added.

“The eNaira which is the first central bank digital currency in Africa and one of the first in the world, the eNaira will foster greater financial inclusion using digital channels, support cross-border payments for businesses and firms, and provide a reliable channel for remittance inflows into the country.

“The eNaira will ensure that Nigerians in remote areas can conduct financial activities using their digital devices at little or no cost,” Emefiele said.

In his address at the retreat, Lagos State Governor, Mr. Babajide Sanwo-Olu commended the CBN and the Bankers’ Committee over their policy response and monetary support to spur growth in the economy as well as in fighting the pandemic.

Sanwo Olu said: “I’m expecting that the retreat is not only strategic by providing a platform for all of you to review the various monetary policies and all the intervention program and to provide an opportunity for you to know what the New Year would have for all of us.

“It’s also very appropriate that at this time I commend and thank the leadership of the CBN and Bankers’ Committee in the way and manner that you’ve all stood up and addressed this challenging situation.”

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Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends

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Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends

 

In a rare recognition of industry leadership and enduring contributions to Nigeria’s automotive sector, the Nigeria Auto Journalists Association (NAJA) has named Chief Benson Uwatse, Chairman of Weststar Associates Limited, recipient of the prestigious Nigeria Auto Legend Award at the 19th Nigeria Auto Industry Awards.

Uwatse’s emergence places him in an exclusive league of automotive icons, making him the third industry heavyweight to receive the distinction after Chief Michael Ade-Ojo, Chairman of Toyota Nigeria Limited, and Dr Cosmas Maduka, President and Chief Executive Officer of Coscharis Group.

The recognition celebrates Uwatse’s more than three decades of involvement in the Nigerian automotive industry, particularly his role in advancing the Mercedes-Benz brand and strengthening its presence in the country’s premium and luxury vehicle market.

The recognition underscores Uwatse’s longstanding involvement in the Nigerian automotive sector and his contributions to the development and representation of the globally renowned Mercedes-Benz brand in the country.

As Chairman of Weststar Associates Limited, the authorised general distributor of Mercedes-Benz in Nigeria, Uwatse occupies a strategic position in the country’s premium and luxury automobile market.

Weststar is responsible for coordinating Mercedes-Benz’s business activities in Nigeria, covering passenger cars, commercial vehicles, trucks and buses, alongside dealer support, marketing, training, genuine spare parts supply, warranties and after-sales services.

The company officially commenced operations in February 2008, assuming responsibility for Mercedes-Benz sales and after-sales operations in Nigeria. Its distribution network and authorised dealerships provide sales and servicing support across different parts of the country.

Uwatse’s association with the Mercedes-Benz brand spans more than three decades, giving him considerable experience in the Nigerian automotive business, particularly in premium vehicle distribution, customer relations and brand development.

His involvement in the business has also included leadership responsibilities in the Mercedes-Benz dealership network, specifically as Managing Director of MB Automobile Services Limited, one of the authorised Mercedes-Benz dealers in Nigeria.

The Nigeria Auto Legend Award is particularly significant because it recognises individuals whose contributions extend beyond routine business operations to the development, growth and advancement of the nation’s automotive industry.

Chief Ade.Ojo, the founder of Elizade Nigeria Limited and Chairman of Toyota Nigeria Limited, was the first recipient of the special industry recognition in 2017, in acknowledgement of his decades of investment, enterprise and contributions to Nigeria’s automobile business.

Dr Maduka, who transformed Coscharis from a modest automobile trading venture into one of Nigeria’s leading indigenous conglomerates, also earned recognition for his remarkable contributions to the automotive sector. Under his leadership, Coscharis Motors secured distribution franchises for several globally recognised automobile brands, including BMW, MINI, Rolls-Royce and Ford.

Uwatse’s emergence as the third recipient further reinforces NAJA’s commitment to celebrating individuals whose leadership, enterprise and industry experience have contributed significantly to the evolution of Nigeria’s automotive landscape.

The 19th edition of the Nigeria Auto Industry Awards, organised by NAJA, is scheduled to hold on Thursday, December 3, 2026, at the Civic Centre, Victoria Island, Lagos.

The annual awards bring together automobile manufacturers, distributors, dealers, policymakers, regulators, industry professionals and other stakeholders to celebrate outstanding achievements and recognise excellence across Nigeria’s automotive and transportation sectors.

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Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

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Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.

The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.

Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.

The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.

The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.

Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.

“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.

He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.

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According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.

Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.

The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.

Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.

Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.

The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.

The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.

As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.

Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.

Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.

The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.

The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.

Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.

Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.

The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.

With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.

Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention

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EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks

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EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks

 

Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.

The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.

During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.

NMDPRA officials subsequently sealed the facility pending further investigation.

Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.

He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.

Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.

“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.

“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.

The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.

“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.

He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.

According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.

“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.

Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.

Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.

“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.

The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.

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