E-Financial
Ecobank, Others Ink $7.5b Contractors’ Initiative Pact
Ecobank Nigeria and seven other leading deposit money banks in the country, at the weekend, in Port Harcourt, Rivers State, signed a Memorandum of Understanding (MoU) with Total Exploration and Production Nigeria Limited and Total Upstream Nigeria Limited on $7.5 billion Nigerian contractors’ initiative.
The seven banks include Zenith Bank, Diamond Bank, Guaranty Trust Bank, United Bank for Africa, Standard Chartered Bank, Access Bank and Fidelity Bank.
The initiative, which is part of efforts by Total to strengthen government’s local content policy, would also help the oil company’s contractors to access funds to finance projects in the sector.
Under the arrangement, the accredited banks would specifically finance Total’s local contractors, while there will be domiciliation of payments to the banks.
Guy Maurice, managing director and chief executive officer of Total, said the essence of the initiative, is to bridge the funding gap for the company’s local contractors, which includes vendors and suppliers.
According to Maurice, the MOU provides for sustainable funding relationship between the selected banks and Total’s indigenous contractors, adding that the initiative is line with the Nigerian local content laws.
He expressed gratitude for the emergence of the eight banks, which scaled through the rigorous selection process, saying that the initiative will enhance local contractors’ participation in the company’s entire value chain business.
Also speaking, Jibril Aku, managing director of Ecobank Nigeria, said the programme is quite laudable, affirming that Ecobank is pleased to have been selected, as one of the participating banks.
Aku explained that the banking finance programme is being put together by Total to effectively manage its value chain, including suppliers and distributors.
According to him, the whole essence is how to make the local contractors play more active role in the oil and gas sector through sustainable funding.
Aku assured that Ecobank would remain a major player, with value addition to the initiative.
He said, “this is a good initiative and we are pleased to have been selected as one of the banks after a rigorous process. We have long relationship with Total and some of our customers work with them.
“I can assure that we will add value to the programme. The key challenge now is how to make a success of this programme, so that we can continue to develop and grow new customers for the bank,” he stated.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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