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NIGERIA’S VFD TARGETS 2022 FINANCIAL SERVICES IPO, SAYS CEO

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VFD Group Plc, a proprietary investor in financial services companies, is targeting a 2022 initial public offering on the Nigerian stock exchange, CEO Nonso Okpala tells The Africa Report.

The Lagos-based company has appointed Kairos Capital to help it seek Nigerian and international investors, says Okpala, who holds about 24% of the company. He plans to keep his stake after the IPO.

VFD, which started operating in 2011, currently trades on the NASD over-the-counter (OTC) exchange, an alternative market for west African securities. It became a public company in January 2019 and pays regular dividends to its shareholder base of more than 60,000. Its investments include a stake of 35% in Abbey Mortgage Bank, a majority stake in Anchoria Asset Management, and a wholly-owned microfinance unit.

The company, which more than doubled its full-year profit in 2019, also owns Everdon Bureau de Change, Dynasty Real Estate and the Transfercorp remittances service. Receipts from a main list IPO, says Okpala, would be used to build the VFD “ecosystem” which aims to provide a full range of financial services for families and businesses.

Mortgages are a key part of the strategy. According to the Centre for Affordable Housing Finance in Africa (CAHF), the number of outstanding mortgages in Nigeria in 2019 was just 113,000. The ratio of mortgages to GDP at 0.3% was one of the lowest in the world, held back by high interest rates and equity requirements of 20% for mortgage loans. CAHF says that progressive use of credit bureaux by lenders is improving risk management.

Nigeria’s mortgage market remains “very untapped, with huge potential,” notes Okpala. The company’s virtual banking platform is the “key to the whole ecosphere,” he adds. VFD has no exit strategy for its investments. “We don’t buy to sell. We buy to keep the company and integrate it into our platform.” COVID-19 impact

The COVID-19 pandemic has had no impact on the company’s operating strategy or its IPO plans, Okpala says. VFD’s first-quarter profit declined by 75%. The microfinance business was negatively affected by lockdown, with some clients unable to repay their loans.

Depending on the customer’s business, VFD was able to help with logistical advice and equipment purchase, Okpala says. For businesses that weren’t able to adapt, loans were suspended and rescheduled, with moratoriums being granted for the duration of lockdown. When a company can’t pay, “it’s best to structure the business so that it continues to exist.”

The company’s V digital banking application launched at the start of March drew more users as people needed to find a way to carry out virtual banking during lockdown, he says. VFD itself was able to save on a planned office expansion which it realised was no longer necessary. It now gives employees the option to work remotely. 

“Productivity has increased” as a result meaning “a double advantage,” adds Okpala. The pandemic “has taught us a lot about the running of the company in a cost-effective manner.” The company, which has a stake in the Atiat vehicle and equipment leasing business, is considering branching out into non-core financial services businesses such as auto purchase. It is also studying expansion into foreign markets such as Ghana.

In the process, Okpala hopes that VFD will break with what he calls Nigeria’s tradition of “one-man businesses. We want an institutional strategy. Patient capital needs an institutional process.” 

Bottom Line

Homegrown companies like VFD may be better placed than foreign multinationals to tackle Nigeria’s financial services deficit.

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Zero Processing Fee; GTBank Removes POS Processing Fees to Support Businesses

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Zero Processing Fee; GTBank Removes POS Processing Fees to Support Businesses

 

Lagos, Nigeria – Wednesday, 12 February 2025 – Guaranty Trust Bank Ltd has announced the removal of processing fees on all GTBank POS terminals, reinforcing its commitment to supporting businesses with cost-effective payment solutions.

 

This initiative, which took effect Tuesday, 11 February 2025, communicates that merchants using GTBank POS terminals will no longer incur Merchant Service Charges (MSC) when receiving payments from customers.

 

With this initiative, all qualifying SME Merchants can now receive payments at zero cost, allowing them to reduce operational expenses, whilst promoting the merchant’s enterprise, and enhancing customer experience.
Speaking on the initiative, Miriam Olusanya, Managing Director, Guaranty Trust Bank Nigeria, said: “At Guaranty Trust Bank, we are always looking for ways to add value to our financial ecosystem. By implementing the zero processing fees on POS transactions, we are empowering businesses to get the full value of every payment they receive, whilst also ensuring a more seamless and efficient payment experience.”
The Zero Processing Charge campaign aligns with GTBank’s ongoing efforts to empower businesses with innovative financial solutions that drive growth and efficiency.

 

For more information, merchants are encouraged to contact their Relationship Managers or reach out to the Digital Banking Support Team at [email protected].
About GTBank

 

Guaranty Trust Bank (GTBank) is a leading financial institution committed to delivering innovative banking solutions that empower businesses and individuals. With a strong focus on technology and customer satisfaction, GTBank continues to redefine the banking experience across Africa and beyond.

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Nigerian Officials Condemn Canada’s Visa Denial to Military Leaders

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Nigerian Officials Condemn Canada’s Visa Denial to Military Leaders

Nigerian Officials Condemn Canada’s Visa Denial to Military Leaders

 

The Federal Government and former diplomats have condemned Canada’s decision to deny visas to top Nigerian military officials, including the Chief of Defence Staff, Gen. Christopher Musa, and other senior officers. The controversy arose after Gen. Musa revealed that several high-ranking officials were barred from attending a Canadian event honoring war veterans, leaving some delegation members stranded.

 

National Security Adviser Nuhu Ribadu expressed outrage at the development during the maiden annual lecture of the National Association of the Institute for Security Studies in Abuja on Thursday. Ribadu described the visa denial as “disrespectful” and declared, “Canada can go to hell.” He applauded Musa for addressing the issue publicly and emphasized the need for Nigeria to strengthen its internal capacity.

 

“Even though it’s painful and disrespectful, we are peaceful, we are strong, and I agree with you—it is time to fix our country. This is yet another reason we must work hard to make Nigeria work,” Ribadu stated.

 

Gen. Musa called the incident a “wake-up call” for Nigeria to stand firm against being taken for granted by foreign nations. “This is a reminder that we must stand on our own, stand strong as a nation, and refuse to be taken for granted,” he urged.

An official from the Canadian High Commission, speaking anonymously, indicated that an official response would be provided on Friday.

Former Nigerian Ambassador to Cameroon, Ambassador Rasheed Akinkuolie, criticized the visa denial as inconceivable and proposed a reciprocal delay in processing Canadian visa applications. He also recommended summoning the Canadian High Commissioner for an explanation.

“High officials of the rank of the CDS, COAS, and Service Chiefs should normally hold diplomatic passports. Application for visas of such top officials should be routed through the Ministry of Foreign Affairs, and forwarded with a Note Verbale,” Akinkuolie explained. “If such a denial occurs, the Nigerian mission in Canada should delay all diplomatic, official, and private applications of Canadians visiting Nigeria as a reciprocal measure.”

Ambassador Akinkuolie also emphasized the importance of limiting delegations to official personnel to avoid unnecessary complications.

Similarly, retired Ambassador to Algeria, Amb. Mohammed Mabdul, described the visa denial as “highly undiplomatic” and urged the Canadian High Commission to reconsider. “The issue of security should not be taken for granted,” Mabdul warned, stressing that diplomatic relations should not be jeopardized by such actions.

However, former Nigerian Ambassador to the Philippines, Yemi Farounbi, criticized Ribadu’s language, calling it undiplomatic.

“I don’t think the NSA handled the matter in the best possible way, and the language used cannot be considered diplomatic,” Farounbi said. He suggested that the issue should have been referred to the Ministry of Foreign Affairs.

“Every sovereign nation has the right to grant or deny visas to any applicant. Considering the bilateral relationship, the matter could have been addressed through diplomatic channels. The Ministry of Foreign Affairs is the best agency for handling such matters, and they would have used appropriate language,” he added.

Farounbi further warned against ministries and agencies taking on roles that fall under the Ministry of Foreign Affairs.

“There are instances where top officials visit foreign countries without informing the Nigerian Embassy in those countries. This is not how such matters should be handled,” he said.

As diplomatic tensions rise, all eyes are on Canada’s official response and any potential actions Nigeria may take to address the issue.

 

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Elon Musk’s Team Accuses FEMA of Misusing $59 Million to House Illegal Migrants in Luxury Hotels

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Elon Musk’s Team Accuses FEMA of Misusing $59 Million to House Illegal Migrants in Luxury Hotels

Elon Musk’s Team Accuses FEMA of Misusing $59 Million to House Illegal Migrants in Luxury Hotels

Elon Musk’s Department of Government Efficiency (DOGE) has made serious allegations against the Federal Emergency Management Agency (FEMA), claiming that the agency misused $59 million to accommodate illegal migrants in luxurious hotels.

 

The billionaire entrepreneur revealed this in a tweet on Monday morning, stating that the discovery was made last week. According to Musk, the funds were intended for American disaster relief but were instead diverted in violation of national regulations.

 

He wrote: “The @DOGE team just discovered that FEMA sent $59M LAST WEEK to luxury hotels in New York City to house illegal migrants. Sending this money violated the law and is in gross insubordination to the President’s executive order. That money is meant for American disaster relief and instead is being spent on high-end hotels for illegals! A clawback demand will be made today to recoup those funds.”

 

The revelation has sparked controversy, with critics arguing that FEMA’s allocation of funds should prioritize American citizens affected by disasters. The allegations have also intensified scrutiny on FEMA, which has faced previous accusations of financial mismanagement.

 

An inspector general audit recently revealed that FEMA mishandled nearly $10 billion in COVID-19 relief funds. The audit stated that $8.1 billion in costs remained questionable, while $1.5 billion was allocated prematurely and could have been better utilized for other emergencies.

 

As scrutiny mounts, former President Donald Trump has reportedly considered abolishing FEMA, describing the agency as “a disaster.” To address these concerns, Trump has established a council, led by Homeland Security Secretary Kristi Noem and Defense Secretary Pete Hegseth, to review FEMA’s operations and propose necessary reforms by late June.

 

The allegations against FEMA have triggered a broader debate on the proper allocation of taxpayer funds and the government’s role in disaster management. More updates are expected as the situation develops.

 

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