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AMML to float micro-finance bank
By Nasir Imam THE Abuja Market Management li/llited (Ar.. IML) has secured approval from lhe Centn.1Bank ofNigerla (CBN) to operate a micro· finance bank, its Managing Dll'CCtor, Abubakar Farouk has said. Abubakar said that the company had made application fora micro fmance bank to enable them maximize the eco· nomic opportunities onts traders who do business within lheir markets. He said Ihis during an interactive session wi th reporl· en in Abuja, ....·here he emphasized that the market will continue to fightlhe menace of illegal shop SlructUfC5 in the market. According to him, the AMML has eight markeu in the Federal Capila1 City under her manageria1 mandate amongst which arc the Gark! Modern Market, Wuse market and Nyan~ informal markets. The appro\"al which has been given in principle by the CBN, would empower the M1l-.1L to run its micro finance bank from within the Gark! market which, he said. would reduce the risk of moving cash over long dislance by the lJ"adcn to thei r respective banh.. He a1so said that with the pooled resourccs thaI would be made available to the bank. they would provide loans to traden who do business in anyoflhe markets managed by the AMM.l.. He said that the market has increased its scope of open.· tion through its partnership with the Nasanwa State gOY· ernment with whom it planned to manage the 54 heclare Karu market and the lafiYll market.
UBA shareholders lapprove restructuring plan
Cassava bread will save Nigeria N215bn annually -FG By Zakartyya Adar11mala
F,om Kayod! Ogunwale, Lagos
in no n-commcrdal banking businesses
will be held by USA Capital Holdings SHAREHOWERS of United Bank ·(or Africa (UBA) Pic ytsterday unanimouslyapp('()Ve(( the plan for the group 10 operate the n':W structure, whue a non-opu.mngCl.mpany to be lisIcd and I-~'\own as UBA Holdings PIc. UBA HoIdmgs Pic will become the parmt company of three: intcnnroiatc
IlOldingcomparues which include UBA 1)1e. USA Afria Holdlngs Limited and USA Capital Holdings Limil& UBA Pic v.ill hold the Nigtrian commercial banking businesses. including !.he bank's branch hl New York, USA Pmsions CustodliUl and USA FX Mart; UBA Africa Holdings Limited will hold and oversee all the African com-
mm:ial banking businesses excluding Nlgttia; whilC'l the groups 1n\'~tmenU
limited in the>! ~ arrangemenL Also, UBA ~k will remain a listed entity on the Niguian Stock Exchange.. Existing shareholders ....;U cede 60 per cent of tht:ir holding in USA Pic for 100 percent ownership ofUBA HoIdingsPlc. In addition, UBA Pic will di\'n! its ownership of African banking and non-commercial banking subsidiaries to UBA Africa Holdings PIc and UBA CapitalHoldingsPIc. nll~setwoentities will in rum be wholly owned by UBA Holdings Pic. The restructuring by USA is sequel to theapprm-als-in-prlndple obla.lned from theCmtnl BankofNigcria (CON) and Securities and Exchange Commission (SEC) respc'Clh'el.y.
The rationale for the change in the CU!'TeIlt structure is to align the ownership and ope:ration of the group with the new licensing repme of the CBN. According 10 Group Managing Dif«tor and Chief Executive Officer ofUBA, Mr. Phillips Oduota. -ili.is ncw mm'C will diminaIe duplkation across business lines. whilst improving 0\'Cr.l!I coordination. The assets of the commercial banking business in Nigeria will be ring.fenced from the other bU'lincsses~
Ex«utive Director, Group Executive Officer, Mr. Emml'- nuel Nnorom said the Holdco structure cre:lles a unique platfonn for a broader mlgt' of business and serviu olTerings to cotrench the Group's market COlllpetirn'CllCSS and allow respccth'e management of each cntitylo be bttter f~
NAMB urges FG to stop ministries from establishing MFBs
PROOUCfION of bread with flour made from cassava will save Nigeria N21S billion annually and will create jobs for man)' Nigerians.. the Fcdaal Gm'emment has said. The Minister of Information and Nationa1 Orientation, Mr Labaran Maku, who disclosed this yesterday at the Sci· ence and Technology Ministerial press briefing in Ahuja, said N630 billion is used in importing wheat into the country C\'cry year and that wing 40 per unt of CU$a\'lI flour in production of bread in the country would save a whooping N21S bUlionannually. According to Mr Maku,the N2 1S billion that .....ould be saved from wheat importation would surel y benefit Nige. rian famlen and .....ould a1so create jobs 10 numerous other Nigeria.ns. He said unemployment rates ......ould continue 10 rise in the country if the go\'Unmcnt still supporu imponation, adding that FG .....ould soon ban importation of some foreigngoods. He said if just IS per ccn.t of the NIgerian population could be patronizing made in Nigeria products, the country's economy \\'Quld grow by double dlgit. - One challenge we have is that some people stiUbe:lie\'e that good and quaJjty products can only come from abroad. lfthis is not changed our«onomywould continue to unde·
mop«!. THE Lagos Chaj>ter ofNallonaJ Ass0ciation ofr..Ucro6nance Banks (NAMB) on Wednesday Galled on tht: Fedtr.ll Go\"CJ"n.mel\l pm'et11 lu agencies from establishing microfinance banks.. Mr Olufemi. Babajide, the OWnnan of the chapter. tuld newmen In Lagos tlu.t plans by $OIlJ.egO\'ttItmtnt agenies 10 establish miCl')finance banks would becounterprodu :O...c. According te> Babajide, regulators and practitioner:; in the sub-sector are currenu)" planning to revive ule sub· sector and 50such plans would rubbish
to
the CUffi"flt de,rdopmcnL - I read in some national dailies recmuyU1at Bank of Agriculture and the ~.linistry of Transport, among othe~ aTe planning to establish miaoftnanu banks in aU Joa.I goo.'CIllffiCflt areas. l Ve aTe aU a....'llfC"ofsimilar institutions thaI ~Sd up to support thepoor in lhe past and had failed. A good example is lhe Peoples Bank. '"In thall!l1l, lU payers' money were diverted into structures that failed partly due to UlC belief thallhey ....'I!fe national
ake
-If lhese mkrofmance txmks aTe set up and u.t')' failed, it will ha\'C spill<m:r dfeas on the existing ones that an' now \-;br.mt,- he said Babajidtsald that what thesubscctor needed now was a maximum support from the govmunentlhrough funding. Heurgcd UlCCentral BankoCNigeri.a (CBN) to encourage the growth of current reforms in the sub-sector, Babajide said that operatOR in the sub sector had learnt from !heir mista.ko and would work hard to sustain the sub sector. (NAN)
-SOme people aTe saying what is the big deal about cassa.... bread; and we teU them lhalthe big deal is thai it will save the country N2 1SbilUon. You know lhecountry spends N630bilUon on importation of .....heat ~ rear. And by producing bInd from 40 per cent cassava flour, the country would be saving N2 lS billon and thai would ~efit our farmen and ....'Quld ernIe jobs for other Nigerians~ he said Also spnking atlhe briefing. the Minister o£Science and Technology, Prof Bassey Ewa. said the mInistry's pvastatals ha\·e o\'Cr 100 rescan::h and development products waiting to be commerdaliud. Prof Ewa calJed on entrepreneurs to partner wilh Ihe minislry on how to commen;ialize the products and produce them in large quantities.