Basil Omiyi retires as Stanbic IBTC Holdings chairman

Mr Basil Omiyi has retired as Chairman of Stanbic IBTC Holdings after seven years of heading the group.

He joined Stanbic IBTC in March 2015 as a Non-Executive Director before becoming the group’s chair on May 15, 2017, replacing Atedo Peterside.

According to the press release by the group, a new board chairman has been approved and will be announced at a future date after receiving regulatory approvals. The group also appreciated Mr. Omiyi for his contributions as the chairman, noting,

“The Board of Directors acknowledge and sincerely express their profound gratitude to Mr. Omiyi, CON for his leadership, service and immense contributions to the Stanbic IBTC Group while he was a Director and Chairman of the Board and wishes him the very best in all his future endeavours.”

Omiyi’s retirement from Stanbic’s board comes barely two months after his exit as the Non-Executive Chairman of Seplat Energy Plc in March 2024. He became Seplat’s Chairman in May 2022, after holding a position on the oil company’s board as an Independent Non-Executive Director.

In Seplat, he was replaced by Udoma Udo Udoma, Nigeria’s former Minister for Budget and National Planning between 2015 and 2019. However, the time leading up to his departure from Seplat was marked by corporate conflicts, which led to the resignation of a director, Professor Fabian Ajogwu.

Basil Omiyi as Chairman of Stanbic IBTC
During his period as Chairman of Stanbic IBTC, the group’s net income grew by 190.5% from N48.4 billion as of FY 2017 to N140.6 billion as of FY 2023. The group’s gross earnings grew by 117% within those seven years, from N212.4 billion as of 2017 to N461.1 billion as of 2023, representing an average annual growth rate of 16.7%.

In his last year as Chairman, he oversaw the launch of Zest Payments, the group’s fintech arm which offers e-commerce and Buy-Now-Pay-Later (BNPL) services.

Basil Omiyi corporate exploits
Before his appointment as Stanbic IBTC Chairman, he had spent much of his career at Royal Dutch Shell, where he held various positions in Nigeria and Europe, including Head of Production Technology, Chief Petroleum Engineer, Managing Director of Shell Petroleum Development Company of Nigeria Limited, and eventually, Country Chairman of Shell Nigeria.

He still serves as the Chairman of Greenacres Energy Limited, and he served as the Chairman of the Nigerian Upstream Industry Group. He served as a board member of Nigerian Business Group of the New Partnership for Africa’s Development (NEPAD) and the Nigerian Extractive Industry Transparency Initiative (NEITI).

Stanbic IBTC seeks to raise N550 billion through rights issue and debt placement

Stanbic IBTC Holdings Plc is looking to raise N150 billion through a rights issue programme and N400 billion through a debt issuance programme, amounting to a total of N550 billion.

These were part of the resolutions during the group’s Annual General Meeting held on May 16, 2024, in Lagos, Nigeria.

Another resolution of the AGM was to increase the group’s share capital from the current N6.478 billion to N8.25 billion by creating an additional 3,543,002,837 ordinary shares. Presently, Stanbic IBTC Holdings has 12,956,997,163 fully issued ordinary shares.

Stanbic IBTC Holdings has a paid-up share capital of N109.26 billion, a N90.471 billion shortfall from the N200 billion minimum capital requirement set by the CBN for the national banking license. However, recall that Stanbic IBTC Holdings is a group that contains 10 direct subsidiaries such as Stanbic IBTC Bank Limited, Stanbic IBTC Pension Managers Limited, and Stanbic IBTC Asset Management Limited, among others.

The group’s paid-up share capital is split among its direct and indirect subsidiaries, with about N62.469 billion allotted to Stanbic IBTC Bank Limited, which it wholly owns. Stanbic IBTC Bank’s paid-up capital is split into a N20 billion share capital and N42.469 billion share premium.

Hence, the bank’s paid-up capital falls short by N137.53 billion of the minimum capital requirement set at N200 billion by the CBN for a national banking license, which the bank currently holds.

N150 billion Rights Issue programme
By looking to issue an additional 3,543,002,837 ordinary shares and raise up to N150 billion from the rights issue, Stanbic looks to sell the new shares at a price level of around N42.

Currently, Stanbic IBTC shares sell at N52.00, and the rights issue presents an opportunity for existing shareholders to acquire additional shares at a discounted price. However, it also has a potential dilutive effect on the shares of existing shareholders.

Since the announcement of the banking recapitalization exercise, Stanbic IBTC’s share price has declined by 7.14% from N56.00 on March 28 to N52 as of May 17. With the announcement of the rights issue, the price is projected to decline further.

According to Matilda Adefalujo, an Investment Research Analyst at Meristem Securities, investors often tend to display an initial pessimistic outlook during the right issues, considering the dilutive effect on their shares.

“The initial reaction is expected to be pessimism towards their Stanbic shareholdings. However, looking at the fundamentals, Stanbic has doing well in terms of profitability, as their Q1 2024 and FY 2023 numbers have been great.”

“It’s now left for Stanbic to sweat their loans and advances, as well as beef up their core operations to send a message to their investors that they can still provide good returns to them (investors).”

Another aspect to consider is the feasibility of raising the specified amount from the NGX, given the volume of rights issues anticipated on the exchange over the next two years.

Since the announcement of the banking recapitalization exercise in late March, over N1 trillion worth of upcoming banking rights issue have been announced.

Nigerian Breweries also looking to raise N600 billion through a rights issue on the exchange.

N400 billion debt issuance programme
Apart from the rights issue programme, the group is also looking to increase its paid-up capital through a N400 billion debt issuance programme. The format of the bond issuance is yet unknown, however, the group’s board has received its shareholders’ approval to determine how they want to borrow the money and in what currency.

The debt issuance programme could be through a public offering (like selling bonds to the public), private placement (selling bonds to specific investors), or other methods.

FIRSTBANK, ROTARY EMPOWER 102 BENEFICIARIES WITH N20M START-UP KITS

The First Bank of Nigeria Limited, with Rotary Club International, District 9110, has distributed N20 million worth start-up kits to 102 beneficiaries in Lagos to empower them across various trades.

The News Agency of Nigeria (NAN) reports that start-up kits distributed included: grinding machines, plumbing kits, deep freezers, sewing machines, generators, gas burners and cylinders, barbers and hairdressers kits, among others.

NAN further reports that the community intervention project had beneficiaries from the three major ethnic groups in Nigeria drawn from Lagos, Ogun and Oyo states.

Mrs Helen Ihonre, Unit Head, Other SME Products e-Business and Retail, FirstBank, during the presentation, offered insights on financial management and economic discipline. She emphasised the importance of maintaining records and accessing low-interest loans to support business growth and expansion.

She urged beneficiaries to prioritise saving from the inception of their businesses, while discouraging them from keeping funds at home, which might lead to misuse. “Start saving from the beginning of your business. Don’t wait till you sell then keep the money in your house”, she said.

Rotary District 9110 Governor, Ifeyinwa Ejezie, spoke on the significance of economic empowerment in Rotary’s initiatives and called for government collaboration to reach grassroots communities effectively. She emphasised the role of Rotary in complementing government efforts and stressed the need for recognition and partnership to enhance community development. She added that the N20 million items distributed were the largest the district had done in one empowerment initiative in recent times.

Bukola Bakare, Rotary International District Governor Nominee Designate, explained the process and challenges of raising funds for the project and how they incorporated Rotary from Singapore to absorb shocks from inflation. She said, “everything that has been given here today is free for the beneficiaries”.

She mentioned that FirstBank was a major sponsor for the project, adding that the 102 beneficiaries were chosen based on a needs analysis from Igbos, Hausa and Yorubas resident in Lagos, Ogun and Oyo states.

“FirstBank is our major supporter for this programme” she said.

Mr Babatunde Adewale, Permanent Board Member, Lagos State Universal Basic Education, lauded the empowerment programme, while reeling out contributions and projects of Rotary International to schools in the state. “We really appreciate Rotary and SUBEB will always continue to collaborate with them,” he said.

Mrs Kemi Kalesanwo, Director, Lagos State Agency for Mass Education, said that 22 out of the 102 beneficiaries were from the agency’s vocational training centres. Kalesanwo said that the state government believed in public, private partnership and was happy with the collaboration with Rotary and FirstBank.

She listed projects donated by Rotary to include construction of one of the eight vocational training centres, owned by the agency in Igbogbo area of Lagos. Kalesanwo, therefore, urged other Nigerians to support government programmes.

Otumba Wemmy Osunde, Chairman, Illisan Development Association, Ogun State, pledged personal commitment to ensuring beneficiaries utilise the items for economic gain. Adekunmi Adeniyi, an industrial gas burner and cylinder beneficiary alongside other beneficiaries expressed gratitude to Rotary International and FirstBank for the initiative. He acknowledged the impact on their respective trades and crafts.