Wema Bank, the pioneer of Africa’s first fully digital bank, ALAT, has charged stakeholders to prioritise digital empowerment for MSMEs as a measure for championing a sustainable MSME ecosystem in Nigeria.

The charge was made at the International MSMEs Day and MSME Awards Night 2024; a two-fold event organised by the Federal Government through the Office of the Vice President in commemoration of World MSME Day 2024 recently in Abuja.

The event was themed ‘Call to action: Provision of sustainable single-digit loans for MSMEs,’ and featured entities, including Wema Bank, who brainstormed and proffered financial solutions to provide affordable loans and funding for MSMEs.

The Chief Executive Officer of Wema Bank, Moruf Oseni, represented by the bank’s Executive Director of Retail and Digital Business, Tunde Mabawonku, emphasised the pressing need to prioritise technology and digital empowerment to complement capacity development, financial empowerment, and collaborative efforts, towards building a supportive ecosystem for MSMEs to thrive.

He said, “At Wema Bank, our approach embodies the saying, ‘Give a man fish, he will come back but teach a man to fish, he will learn to fend for himself and others.’ Technology and digital are the future, and intelligence is here to stay. What we are doing for these MSMEs is beyond providing the finances they need.

“We are also focusing on empowering them with relevant and transferrable digital skills to ensure they are not left behind in this digital evolution. What are the skills they need to sell in this fast-growing digital world? To operate effectively? To compete? To maximise the resources at their disposal? These are the questions that drive us at Wema Bank,” he said.

According to Oseni, the goal is digital empowerment for scale and to maximise the bank’s impact.

“We continue to partner with several esteemed bodies and institutions across the world, from banks to agencies, regulatory organisations, etc.

“Collaboration for us is continuous, from small alliances that allow us to empower smaller businesses through significant platforms within their ecosystem to bigger partnerships like the FGN-ALAT Digital Skillnovation Programme.

“We will continue to combine efforts and pool resources where ideal to create an enabling environment for businesses to thrive, provide financial support and other resources that these businesses need and empower them to skillfully utilise the resources available to them for maximum impact and growth,” Mabawonku concluded.

Micro, Small, and Medium Enterprises Day is celebrated globally to raise awareness of the tremendous contributions of enterprises to the achievement of the United Nations Sustainable Development Goals.

The Securities and Exchange Commission (SEC) has announced plans to impose a N1 million penalty on banks failing to submit complete capital raise applications in line with banking sector recapitalisation guidelines.

In a statement released, SEC emphasised that banks must follow specific norms and procedures to raise capital through rights issuance, private placements, or other authorised methods.

Applications and supporting documents are required to be submitted electronically via email. The SEC will review the documents and notify applicants of any deficiencies electronically.

The statement read in part, “Where an application is returned for being incomplete, a penalty of N1,000,000 and re-filing fee of N100,000 shall apply. This fee is payable by the Issuing House without a recourse to the Issuer or the Issue proceeds.”

The SEC’s initiative aligns with the Central Bank of Nigeria’s directive for banks to raise additional capital, essential for overcoming economic challenges and achieving a $1 trillion economy by 2030.

“As the regulatory institution mandated to regulate and develop the Nigerian capital market, the Securities and Exchange Commission has the responsibility to ensure a smooth, transparent, and efficient capital raising process by the banks.

“This framework outlines the guidelines and procedures banks are required to follow to raise capital through rights issuance, private placements, or other approved methods during the 2024–2026 recapitalisation period.

“The SEC stated that applications and documents are filed electronically via email, adding that documents forwarded will be reviewed, and where there are observed deficiencies, this will be communicated to the applicants electronically,” the statement continued.

International banks must increase their capital base to N500 billion under the new CBN capital requirement, while national banks must raise theirs to N200 billion, and regional banks to N5 billion.

The SEC highlighted that this framework is designed to ensure an efficient, transparent capital raising process that protects stakeholders’ interests. Banks and stakeholders are urged to adhere to the guidelines, which align with the Investment and Securities Act of 2007.

The SEC also stressed the importance of updating corporate information with the Corporate Affairs Commission before filing applications, to streamline the approval process and enhance regulatory oversight.

“The commission may require other documents or information as may be necessary. Where an issuer had already filed necessary documents with the SEC (e.g., a Memorandum and Articles of Association (Memart) or a certificate of incorporation or a certificate of increase in share capital, etc.),” the statement concluded.

The CBN on March 28, revealed updated minimum capital requirements for banks, establishing a minimum capital base of N500 billion for commercial banks with international authorisation.

…Offers N100m in grants and mini-MBA scholarships

By Opeyemi Abdulsalam

Access Bank has opened applications for its Womenpreneur Pitch-a-ton programme, aimed at empowering female entrepreneurs.

This year’s programme will award 120 winners with business grants and a certified mini-MBA programme worth over N100 million, in partnership with the International Finance Corporation (IFC).

The application period starts on June 24, 2024, and ends on August 9, 2024.

Successful applicants will undergo a three-month programme, including an eight-week mini-MBA training session, to equip them with the skills and knowledge needed to grow their businesses.

Participants will also have the opportunity to showcase their businesses in pitching sessions to a prestigious Pan-African jury. The top finalists will present their business ideas, incorporating the knowledge gained from the mini-MBA program, and stand a chance to win financial grants and other consolation prizes.

At the launch of Womenprenuer Pitch-a-Ton Season 6 in Lagos, Group Head, Women Banking, Access Bank, Abiodun Olubitan said, “Some years back we conducted a survey on why female owned startup businesses fail within the first five years of existence and we found out that it was due to a knowledge gap which needed to be bridged by providing resources to these women to help their businesses thrive.”

She noted that this birthed the Womenpreneur Program, one of the largest business growth platforms for women in Africa, explaining that the programme is a female focused campaign that seeks to provide quality trainings to business owners through an IFC certified mini-MBA as well as grants to select winners

Olubitan said the main objective is to help women with the requisite knowledge to grow their businesses.

“The program has been running for the past five years, this is the sixth year. From previous seasons, we have received impressive and positive testimonials from participants about how the program and the training have helped them improve their businesses.”

The Access Bank official announced that the program has produced 645 mini-MBA winners across six geo-political zones in Nigeria as well as 10 other African countries; 65 winners have received over $175,000 in grant prizes as well as 40 other consolation prizes from 2019 to 2023.

“The impact has been enormous and has exposed participating businesses to new and international clientele and markets. Some participants have had opportunities to launch their businesses in the international market.

“The women have learnt useful skills such as business marketing, management and digital prowess which they have applied to their businesses to experience the growth recorded,” she added.

Entering its sixth season, the Womenpreneur Pitch-a-ton program is designed to support female entrepreneurs who have been running their businesses for at least one year, have at least 50 percent ownership or controlling rights, and fall within the age range of 18 to 55 years. To be part of this exciting journey, please log on to www.womenpreneur.ng to fill your application.