Access Holdings posts record N1.4 trillion annual revenue but profit drops

By Abubakar Yunusa, Abuja

Nigeria’s biggest lender Access Holdings posted its biggest revenue on record in 2022 after a sharp boost from interest on loans.

But after-tax profit still slowed even when turnover increased by as much as 42.8 per cent or N416 billion, according to its audited financials released on Thursday.

The financial services group saw interest earned from giving credit to borrowers surge by almost half to N770 billion but the bigger slice of that was devoured by interest expense, the cash it paid customers in exchange for keeping their deposits.

As regulation demands Access Holdings made all allowance of N197.6 billion in its revenue pool to cover loans, whose chances of being repaid are uncertain, and also depreciation of its financial assets, weakening earnings.

The figure was 138 per cent higher than a year ago, a pointer to deteriorating credit quality.

Earlier in April, the group’s commercial banking unit Access Bank received $300 million to drive expansion in Africa, where the lender has completed a raft of merger deals in the past two years.

In the preceding month, it commenced the business combination process that will unite its Zambian subsidiary, Access Bank Zambia Limited and African Banking Corporation Zambia Limited into a single entity.

Net fee and income for the review period advanced 23.2 per cent to N145.7 billion, helped by a spike in credit-related fees and commissions.

Further straining profit, operating expenses galloped from N232.2 billion to N341.7 billion, the major pain points including IT and e-business expenses, administrative costs as well as premises & equipment costs.

Profit before tax contracted by 5 per cent, while profit for the year dipped to N152.2 billion from N160.2 billion.

Access Holdings announced in another document a final dividend per share of N1.30, taking its total for the year to N1.50.

That compares to the N1 per share paid for 2021, meaning the planned cash reward for last year surpasses the preceding year’s by 50 per cent.

Access Holdings’ shares appreciated by 10 per cent at market close in Lagos, where the stock is quoted at N9.9 per unit, following the news of planned dividend payment.

Dangote cement empowers 60 farmers in agric programme – Official

By Abubakar Yunusa,Abuja

As part of efforts to boost food production in the rainy season, Dangote Cement announced that no fewer than 60 farmers have participated in its empowerment programme at the Ibese host communities.

In a statement on Thursday, the company noted that the empowerment programme will help strengthen their capacity for modern agriculture practices to boost crop production.

The company management explained that the maiden edition of the empowerment programme was specifically targeted at maize cropping.

Azad Nawabuddin, the Ibese Plant Director, said the programme involved farmers drawn from all the 17 host communities of the cement company and that it was part of the community development agreement signed by both parties recently.

He added that the company would always be ready to help the people especially farmers in any way possible to boost food production.

Mr Nawabuddin told the farmers that the cement company in collaboration with some expert consultants mapped out practical training on capacity development on good agriculture practices for soil fertility and to maximize maize cropping.

He said the company would not stop at the level of training but would also support the farmers with farm clearing, distribution of farm inputs such as seeds, herbicides, pesticides and fertilisers, agricultural extension as well as the required route to the market.

Giving the modalities for the elected farmers, Mr Nawabuddin explained that to ensure maximum impact, only farmers whose farm size was not more than one hectare at the commencement of the programme and who have been in active farming in the last three years were considered for the project, organized in partnership with an indigenous Agric-support services firm – Midstream Agro.

“Ibese Plant host communities are endowed with vast and arable land as well as good climatic conditions necessary for sustainable agricultural ventures hence, the Company’s support to the farmers for improved output with greater efficiency,” he said.

He assured that Dangote Cement will continue to offer support to the farmers for the socio-economic transformation of the communities, as spelt out in the CDA, which he promised will be followed to the letter.

Speaking during the closeout meeting of the empowerment initiative, the Lead Consultant, Midstream Agro, Olumide Oladipupo, thanked the company for investing in the development of farmers in its host communities while advocating for more novel initiatives such as the one championed by Dangote Cement.

“The need for other corporate organisations to join the conscious efforts to drive more people into agriculture across the host communities cannot be over-emphasized as it is one of the most effective ways to reduce unemployment and overdependence on such companies for survival,” Mr Oladipupo said.

Abisekan Idoola of Abule Oke community, one of the farmers, noted that apart from the direct benefit from the programme, it afforded them the platform to cross-fertilise ideas and share best practices, which has helped to greatly improve the performances of their various farms.