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Oil Discovered in Nasarawa as CBN Unifies ATM Cards, while Access Bank Rebuffs Sidian Bank

Jan 16, 2023   •   by TheAnalyst, Proshare Research   •   Source: Proshare   •   eye-icon 410 views

Being an Analyst Note issued by Proshare Research on January 16th 2023

 

New Oil Discovery in Nassarawa

The Group CEO of NNPC Ltd, Mele Kyari, announced it is set to spud -in the first oil well in Nassarawa State in March 2023, under the hydrocarbon exploration activities in the country’s inland basins. Analysts commend the exploration activities of the NNPC Ltd in the frontier basin, noting that it somewhat justified the commitment of 30% of NNPC profits to the Frontier Exploration Fund. However, analysts express worry about the fate of the new fields in northern Nigeria. Aside from low investment in the oil-rich Niger Delta, militancy and oil theft have eroded the existing investments in the sector. Being the hotspot of insecurity in the country, analysts worry that committing huge resources to explore oil in the north may rather enrich the rogues and terrorists. Analysts are also concerned that despite declaring this period as the decade of gas, no explicit provision is made for gas in the frontier basin, especially as the world is moving away from fossil fuels. Thus, with the Benin trough holding huge gas deposits, analysts say the Keana field discovered in Nasarawa should focus more on gas deposits. 

 

CBN Introduces Unified ATM Cards from Monday 16th January 2023 

The Central Bank of Nigeria (CBN), in line with its mandate, to promote stability, inclusion, and growth in the financial and payment system partnered with the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria’s central switch, in conjunction with the Bankers Committee and other financial ecosystem stakeholders, to rollout the National Domestic Card scheme. The system, which is to commence on January 16th, 2023, would effectively suspend ATM cards and unify payments by bringing in the unbanked population. CBN disclosed that the new card will reduce demand for foreign exchange as more banks discontinue the use of Naira cards for international transactions. This improvement will foster innovation within the Nigerian domestic market, while enabling African and international interoperability, allowing banks and other institutions to offer a variety of solutions including debit, credit, virtual, loyalty, and tokenized cards. Analysts believe that the card will rival big industry players such as Mastercard and Visa. 

 

Access Bank Discontinues the Acquisition of Kenya’s Sidian Bank

Access bank in a bid to explore ways to expand its footprint in Kenya sought to acquire the entire 83.4% shareholding held by Centum Investment Company in Kenya’s Sidian Bank Ltd. Analysts noted that the proposed acquisition was subject to fulfillment or waiver of certain conditions which were not met by both parties despite Kenyan regulators being supportive of the transaction. The bank had planned to merge Sidian Bank with Access Bank’s subsidiary in Kenya to create a stronger banking institution, better positioned to serve the Kenyan market. Access Bank Plc, which presently trades at N9.30 with a market cap of N330.57m, notified the Nigerian Exchange Ltd and the investing public that the Sidian acquisition will no longer be completed by the bank.

 

Aruwa Capital Makes Investment in AgroEknor International

AgroEknor International, a Kano-based agribusiness, secured an undisclosed investment from Aruwa capital management. This fresh investment will be employed for the expansion and diversification of product offerings, support the completion of fumigation chambers, and procure inventory. AgroEcknor sells locally produced dried hibiscus flowers to international food & beverage industry clients. The agri-tech business has helped increase income opportunities for smallholder farmers and also reduce wastage in the agricultural value chain. As demand for superfoods like hibiscus grows, increased investment in African agribusinesses like AgroEcknor serves as a viable opportunity to attract funding from international private and institutional investors. This could further help to transform Africa’s agricultural sector. 

 

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