E-Financial
Heritage Bank to Empower more MSMEs
Mr. Ifie Sekibo, group managing director, Heritage Bank, at the Round Table Discussion and MSME Success Stories, themed: ‘The Economic Outlook-What Future for MSMEs in Nigeria?, where other experts brain-stormed along with him to fashion ways forward for the Nigerian SMEs.
As part of the bank’s commitment to empower the SMEs, Sekibo said led to launching of SMEs Clinic that will help small businesses address challenges associated with setting up businesses while mitigating the effect of certain decisions that may be taken.
Represented by Mary Akpobome who spoke extempore during a panel discussion noted that the clinic was established as a result of the gap left by financial service providers in failing to provide fresh ideas, solution based strategies and specialized service packages to small businesses.
He said although small and medium scale enterprises (SMEs) have proved to be the crucial engines of industrial growth in developing economies like Nigeria, it is necessary to create strategies that can withstand the dynamics of the changing business environment rather than focusing on funds generation.
He said since the SMEs Clinic was established, many small businesses have sprung up and successfully on operation due to, not only the funding, but business advisory it freely offered, adding that financing is not the only problem SMEs face, but other necessary inputs.
He enumerated business built on enduring business platform, and business model among others stand the chance to get loan from the bank.
“Heritage Bank was established as part of the effort to fill the gap left by financial service providers in failing to provide fresh ideas, solution based strategies and specialized service packages to small businesses. We pay a lot of attention to SMEs
“Financing is not the problem, but the other business inputs. Heritage bank has raised a lot of small businesses with SME Clinic. With it, we have built a lot of enduring organisations; we have done more that advisory than money. For us to extend loan to you to finance your business, you must have good business model”, he said.
The industrial experts in the Micro, Small and Medium Enterprises (MSMEs) in the Nigeria’s real sector at occasion unanimously agreed that for the nation to have economic breakthrough as envisaged in the present dispensation of availability of investible funds from the government, the vision of sustainability in business should be taken as paramount by the operators.
The other experts from the financial institutions, business organisations and academia spoke in at the event in Lagos emphasised the relevance of booming SMEs to take the centre stage as a major driver of the economy as well as contributes immensely and filling the dollar drought gap being experienced in the country brought about by the fallen prices of crude in the international oil market.
A senior lecturer, Lagos Business School, Dr. Doyin Salami, who opened the floodgate of speeches in his tagged presentation: ‘2015 Economic Outlook’ said the SME operational strategies in 2015 would be three-pronged on Election, Transition and Normalcy.
Salami, said who wins the present presidential election is not the main issue but the outcome of the election. He maintained that the positive outcome would lead to the smooth transition and expected normalcy in the socio-economic of the country.
He said presently, the dream of running the economy on a private-driven platform is being threatened by insecurity, uncertainty in an election year and the widening threats in communal clashes across the country.
He caution against continued emphases placed on oil as major source of foreign exchange to Nigeria, but urged the government to embrace industrialization by creating policies that would help leapfrog the Nigeria’s SME sub-sector, identified as backbone of any nation, both the industrialized and unindustrialized.
Presently, there over 17 million SMEs in Nigeria
He expressed fear that Nigeria is under fiscal break-even threat with international crude price below $60, insisting that for “Nigeria to balance the economy and be able to pay salaries both at the federal and states levels, the price of crude should hover between $65 and $75 per barrel.”
According to him, “there is a fundamental problem in 2015 and beyond if the down south movement in crude oil persists caused by oil glut. The development has led to the 2015 budget proposal of which the recurrent expenditure must be maintained at the expense of capital expenditure. Even some states government currently cannot be able to pay their workers’ salaries.
“Nigerians should no more live life as they wish but as they see it.”
Lead Consult ThistlePraxix, Dr. (Mrs.) Ini Onuk who spoke on ‘MSMEs and Sustainability’ said any entrepreneur who wants to succeed must identify opportunity, be creative, daring, and risk taking.
She stated that, entrepreneurs are men and women of action who are courageous, alert and sensitive to environment and possess ability to create visions concerning the business environment. She asserted that, the present high mortality rate of small business is awful to contemplate and constitute danger to the entire economic system. She said such development represents serious financial pressure on the nation’s economy as well as a waste of valuable resources.
With the current lull in the business activities as a result of the 2015 election year the business owners should always consider challenging situations and be prepared to meet them pre-planned strategies.
She said the trend where ownership stems mainly from the fact that most SMEs are family businesses structured along sole-proprietorship or partnership is no more in vogue, but needed expansion in terms ownership and decision making.
As a consequence, she argued that managerial decisions here are usually at the mercy of the key owner who in most cases lacks basic managerial skills, qualities and culture to manage a business successfully.
This Onuk regretted also has effects on the management structure and employees-employer relationship.
SMEs should learn creative ways to manage difficult times, example the current condition occasioned by the forth coming 2015 general elections, adding that SMEs owners should always be prepared for unpredictable business situation.
She said also, SMEs should be surrounded by strong support network of trusted professional contact and close relations, especially the consultants for proper advise.
Lastly, she said the entrepreneur should always have a back up business plan for new products and services
She concluded that there is no doubt that SMEs can be a source of development and an engine of growth as the case with Asian countries and America. She maintained that SMEs should therefore take their place in the economic policy priority of government in Nigeria.
Mr. Waheed Olagunju, Executive Director, (SME) Bank of Industry who spoke impromptu as a panelist member on ‘Opportunity and Growth Strategies Available for MSME 2015’highlighted some of the hindrances to easy access to available government’s intervention funds
For him, it has become clear that the lack of trained manpower and management skills constitute major challenges to survival of MSMEs the banks observed before granting loans to borrowers.
He also added that inefficiency in overall business management and poor record keeping is also a major feature of most SMEs the bank put into consideration before granting loans.
According to him, the general requirements for accessing loans in the development bank include having a well-articulated business model, which should have about four sections. The first and second requirements require that the BoI know the business plan the applicant offers and his / her target market.
Third, the applicant must convince the bank of his/her value composition, that is, why people should buy his /her product(s). The applicant should be able to say how he/she intends to create the value proposition, Olagunju said.
Furthermore, the applicant must be able to articulate personnel requirements and identify markets for the products he/she wants to sell.
The World Bank has approved a $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus Programme.
According to information obtained from the bank’s website on Sunday, the approval, which took place on March 28, 2025, marks a significant step in addressing Nigeria’s economic challenges through expanded access to livelihood support, food security services, and grants for poor and vulnerable households and firms.
The project, officially titled the NIGERIA: Community Action (for) Resilience and Economic Stimulus Program, aims to provide essential support to households affected by economic downturns and to bolster community resilience.
It also seeks to improve food security and create economic opportunities for populations most affected by recent economic disruptions.
According to the World Bank, the program represents a significant step toward addressing systemic vulnerabilities in Nigeria’s economy.
By channeling resources directly to underserved communities, the project should alleviate the burden of rising living costs while fostering sustainable growth.
The $500 million loan is not the only financial commitment Nigeria anticipates this week as two additional funding packages are in the pipeline, awaiting final approval.
One of the loans is valued at $80 million and will focus on accelerating nutrition outcomes across the country.
The second, worth approximately $552 million, is designed to enhance access to quality basic education nationwide as both projects are scheduled for final clearance on March 31, 2025.
These loans are part of the World Bank’s broader strategy to support Nigeria’s development priorities, most especially in areas such as healthcare, education, and poverty alleviation, while the institution emphasized the importance of implementing these programs efficiently to ensure maximum impact.
While the loans aim to address urgent socio-economic needs, Nigeria’s rising debt profile has raised concerns among stakeholders. Under the President Bola Tinubu’s leadership, the country has received approvals for 11 World Bank projects totaling 7.45 billion in less than two years. However, data from the Debt Management Office (DMO) reveal that only 774.99 million (about 16% of the approved amount) had been disbursed as of July 31, 2024.
This slow pace of disbursement has sparked debates about the efficiency of project execution and fund utilization
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by Hawwau Gambo, acting head of Communication & Public Affairs, NDIC, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states:
“Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
E-Financial
NDIC Fixes April as Time Uninsured Depositors of Heritage Bank will Receive Liquidation Dividends
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by the NDIC’s Acting Head of Communication & Public Affairs, Hawwau Gambo, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states: “Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
SERAP Asks National Assembly to Drop Bill to Jail Nigerians who Fail to Vote
Nigeria Gets Fresh $500m World Bank Loan for Economic Stimulus Programme
Uninsured Depositors of Heritage Bank to Receive Liquidation Dividends In April – NDIC
SystemSpecs’s Subsidiary Deelaa Becomes Whatadeal
MTN, Lynk Global Make Africa’s First Satellite-to-Mobile Call
Telecom2 days agoIHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
E-Financial2 days agoTitan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
General News2 days agoNCS to Launch Electronic System for Cash Declarations at Airports
News2 days agoSanwo-Olu Hails Jumia for Giant Strides in Growing Nigeria’s E-Commerce Sector
E-Financial2 days agoIMF Appoints Elumelu, Nigerian Businessman to Advisory Council
Telecom2 days agoMTN Champs Continental Relays: Over 1,000 Athletes Gear Up for Lagos Showcase
General News2 days agoAquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
Telecom11 hours agoSmart Treasure Investment Team’s Initiatives Eradicate Poverty, Says Aminu