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AFR Business

Flutterwave CEO Olugbenga Agboola rings NYSE closing bell

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Olugbenga “GB” Agboola, the Chief Executive Officer of Flutterwave, Africa’s leading payment technology company, rang the closing bell for the New York Stock Exchange (NYSE) on Friday. This event was part of the Founders Day celebration in honour of Black History Month, which recognizes the achievements, contributions, and history of African-Americans who are making significant strides in all areas of life.

Flutterwave is a success story originating from Africa, led by an African-American CEO. In 2022, Flutterwave reached a valuation of $3 billion, making it the highest-valued African startup that covers sub-Saharan Africa and, most recently, North East Africa after obtaining an operational license for Egypt.

In October, Olugbenga “GB” Agboola was honored by President Buhari for his contribution to technology and financial development in Nigeria. The President decorated him with the Officer of the Order of Niger (OON) award. This recognition highlights the significant impact that Flutterwave and its CEO are having on Africa’s financial and technological sectors.

Flutterwave’s success is a testament to the ingenuity and resilience of African entrepreneurs and a positive reflection of the African tech ecosystem. It demonstrates the potential of the continent’s vast untapped resources and the immense opportunities available for global investors. The ringing of the closing bell by Olugbenga “GB” Agboola at the New York Stock Exchange is a significant milestone for the African tech ecosystem. It underscores the talent and innovation that exists in Africa and showcases the continent’s potential to make an impact on the global stage.

Heineken completes Russia exit

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Dutch brewing giant Heineken, the world’s second-largest brewer, has finalised its exit from the Russian market, the company announced on Friday.

According to a statement on the company’s website, its assets have been acquired by Arnest Group, a Russian manufacturer of cosmetics and household goods, which also owns a major can packaging business.

Titled: "HEINEKEN completes exit from Russia," the company explained that the transaction has received all the required approvals and concludes the process HEINEKEN initiated in March 2022 to exit Russia, incurring an expected total cumulative loss of €300million.

"Arnest Group owns a major can packaging business and is the largest Russian manufacturer of cosmetics, household goods and metal packaging for the Fast Moving Consumer Goods (FMCG) sector," the statement added

Explaining the transaction highlights, the company stated that the purchase price for the "HEINEKEN Russia business is €1 for 100% of the shares," adding that "All remaining assets including 7 breweries in Russia will transfer to the new owners."

Arnest Group the statement noted "has taken responsibility for the 1,800 HEINEKEN employees in Russia, providing employment guarantees for the next three years.

"In addition to the Heineken brand which was removed from Russia in 2022, production of Amstel will be phased out within 6 months. No other international brands will be licensed in Russia with the exception of a 3-year licence for some smaller regional brands which are required to ensure business continuity and secure transaction approval.

"HEINEKEN will provide no brand support and will receive no proceeds, royalties or fees from Russia. There is no call option to return to Russia."

On the financial implications, the brewery giant stated, "As a result of exiting Russia, Heineken expects total non-cash exceptional losses amounting to €300m including cumulative foreign exchange losses relating to Russia currently recorded in equity.

"This includes a commitment from Arnest Group to repay the historical intercompany debt of the Russian business of approximately €100m due to Heineken in instalments.

The transaction will have negligible impact on diluted EPS (beia) and Heineken’s full year 2023 outlook is unchanged from the sale," the statement indicates.

Heineken’s CEO and Chairman of the Executive Board Dolf van den Brink was quoted in the statement to have said: “We have now completed our exit from Russia. Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia.

"While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner."

A day in the life of an investment banker By Ike Chioke

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It is Monday morning and the weekly research briefing starts at 8:00am sharp in the Boardroom. The briefing is a snapshot of the Nigerian Economic and Capital Market Update and attendance is compulsory for all Afrinvest staff.

As usual, the macro picture was not cheerful. The briefing provided a recap of some worrying statistics for the Nigerian economy. Debt to GDP continued its five-year upward trajectory from 12.6% in 2014 to 19.1% in 2018. While that ratio might seem reasonable when compared to similar emerging market countries averaging 65.5%, what was more troubling was that the Government’s non-debt recurrent expenditure consumed 75.5% of its actual revenues in 2018.

On top of this, borrowing costs have become quite elevated with debt service to revenue now at 60.8%. The rest of the briefing dwelled on the capital markets and reaffirmed continued interest by investors in fixed income securities, given our high interest rate environment. Meanwhile, the equity markets recorded another negative week pushing the Nigerian Stock Exchange All Share Index down 12.1% year to date. All our 13 indices are in the negative save the Afrinvest ICT Index.

On the back of such dismal economic and market news, I scanned the newspapers to see what else had happened over the weekend that I might have missed from my multiple social media handles. Roman Catholic priests had held an unprecedented public protest in Enugu following the killing of yet another priest by alleged Fulani herdsmen, now globally recognized as a terrorist organisation.

Several opinion pages continued to debate the rapid Senate screening and passage of the President’s 43 ministerial candidates, more than half of whom were still being investigated by the government’s own anti-corruption agency for various crimes of criminal enrichment from public purses. One wonders how President Buhari and his new cabinet is going to rise up to the occasion of stopping the rapid backward drift of Nigeria talk less of finding the willpower to move the country forward.

There was a side story about Nigeria spending 10 times more than the UK to maintain its past leaders while the UK government rakes in 37 times more cash than Nigeria, a country where over 90 million out of a population of 191 million live in extreme poverty.

Having had my fill of the negative news, I take a deep breath and refocus my mind on the multiple transaction documents from the investment banking division awaiting my review. We are presently in the middle of developing a securitisations structure for one of our largest clients. After an hour of reviewing investment decks, I go off to meet with the Head of Asset Management to consider the launch of AUSSTINTM, our US dollar-linked structured investment note which we plan to sell to foreign investors seeking to benefit from our high domestic interest rate environment.

Later on, I do my walk around various departments to check on my different teams and generally see how the staff are doing. We have just built a new cafeteria, but they are yet to install a TV in the room.

In the afternoon, I switch hats rapidly from Afrinvest business to:

(i) the Rhodes Trust where, as the National Secretary for the Rhodes Scholarship for West Africa, I need to plan the interview calendar for November/December 2019 during which time the Selection Committee members needs to select our 2020 Rhodes Scholar;

(ii) The American University of Nigeria where I head several committees of the Board of Trustees and need to update the Chairman of the BoT and the President on my committees’ findings;

(iii) Anambra State Investment Promotion and Protection Agency where as chairman of the Governing Council, I need to speak to the Managing Director about several ongoing investment transactions that the State Governor wants to complete timeously;

(iv) Fitness Factory, a gym business which I set up with a friend that is fast becoming one of the leading fitness centres in Lagos; and

(v) Making of Champions, an organization seeking to raise funds for a group of exceptional athletes training to represent Nigerian in international competitions including the Olympic Games.

In between all these, I initiate and respond to multiple calls, emails, texts, tweets and WhatsApp messages. Our media team have put out an interestingly uplifting #MondayMotivation post on Instagram and Facebook. I definitely needed the uplift given the absolute mess the country is in.

I get home at about 8:00pm and continue to worry about my country. It is apparent that Nigeria is rapidly under-developing across all indices — health, education, rule of law, institutional capacity, infrastructure, etc. I fear greatly for the future and wonder how the younger generation is holding up in the face of the daily bombardment of negative ethical values and choices.

From corruption in high places to Boko Haram terrorists, kidnappers, armed robbers and herdsmen causing mayhem across the country while the security forces look on. From the abject neglect of human capital development indices to the inane policies of a political class who pay themselves the highest salaries and allowances among public servants in the entire world. From the terrible state of road and electricity infrastructure to a government spending billions of dollars subsidizing petrol consumption for the elite.

The more I think about this, the more I realize that a child born in Nigeria in the last 20 years can grow up believing that wrong is right and right is wrong and his mind-set would be no different from that of our current crop of political leaders. How, amidst all this moral and ethical decay, can a new crop of leaders be developed, nurtured and sustained to the point where they can begin to make an impact? Can this possibly be done before it is too late?

A lot to think and worry about. I am home and I shift gears, drop Nigeria’s problems and enjoy dinner with my family.

Governance needs appropriate institutions, says Chioke

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The Group Managing Director of Afrinvest, Mr Ike Chioke, has said that creation of appropriate institutions is required to run successful governments.

Chioke said this at the launch of his new book, Akpokuedike – Duty Call in Anambra, where he chronicles the achievements of Governor Willie Obiano of Anambra State.

The launch, which was held on Wednesday, March 9, at the International Conference Centre, Anambra State, coincided with a valedictory ceremony marking the end of Obiano’s tenure after eight years as governor.

According to Chioke, the first thing Obiano did when he took office as governor was to put in place not just physical but institutional infrastructure.

“It goes without saying that you cannot run a government without the appropriate institutions,” he said, adding that the Anambra State Investment Promotion and Protection Agency was the first institution the governor set up.

Through ANSIPPA, a lot of investments came to the state in various sectors: agriculture, tourism and hospitality, and aviation, Chioke disclosed.

On why he wrote the book, he said, “I think I have learned a lot of practical experience on how to translate ideas into action. In my business, we talk about public-private partnership, raising capital and attracting investors. But when you come on ground, we then meet what they call quicksand. You could easily be swallowed by the challenges on the ground for you to implement your vision.

“But working with Obiano, I learnt valuable lessons of how you take an idea, translate it into actionable steps, then execute with diligence until the idea becomes reality. That was what led me to writing the book.”

In his review of the book, professor of Economics and Director, Institute for Development Studies, University of Nigeria Nsukka, Osita Ogbu, submitted that Akpokuedike would serve as a reference material in years to come.

According to Prof Ogbu, Akpokuedike is not just an ordinary biography of Obiano, but also of his leadership in the past eight years.

His words, “I am certain that the author did not realise that the book he has authored about Obiano will be a reference book on political recruitment, inclusive governance, loyalty and political fidelity, empathic and result-oriented leadership as well as talent hunt for political positions.

“The author has painstakingly painted a balanced portrait of the man. His antecedents, character, professionalism, devotion to family and church, achievements left us with utter admiration of Obiano. It is also a story about love, triumph over adversity and God’s faithfulness to those that wholeheartedly trust in him.”

Chioke, he observed, did not rely on Obiano to tell his story, nor did he sit alone to make up an entertaining story.

“He and a handful of talented researchers tracked down those that knew Chief Obiano before being governor and when he became governor to piece together an account that is diagnosed diverse, logical and authentic.

“This is, therefore, a well-researched book of 184 pages, 15 chapters and with fully documented bibliography and sources,” he said.

According to Prof Ogbu, the first and most important lesson, and why people should read the book, is that it teaches that political recruitment requires a thorough background check.

“Our decisions and choices are a product of our culture and biology. An individual’s moral philosophy in personal life and in governance is shaped by the same culture and biology. A person is who he is because of his parental upbringing, home, church and schools he attended.

“I have thoroughly enjoyed reading this book and I highly recommend it,” Ogbu added.

On his part, former Commonwealth Secretary-General, Chief Emeka Anyaoku, noted that the synopsis of the book he read confirmed his best knowledge about Obiano.

Anyaoku added, “Willie Obiano must be one of the most prepared leaders that our country has ever had. There is very little doubt that his administration has transformed Anambra. Obiano is leaving a legacy that will serve this state many years to come.”

Peter Obi: The possibility of a new Nigeria By Ike Chioke

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When the storm of this general election is over, we shall be left with a few lessons. One is, never underestimate the will of a determined people. The other is, when the shepherd is ready, the flock will appear.

Indeed, people, who study politics and societies in transition, will find a fascinating new model in Peter Obi, the Labour Party presidential candidate. In a continent wracked sore by leadership challenges, Obi’s emergence represents a rupture in the dynamics of power and the socio-cultural alignments of the Nigerian society. Never has an outsider from the power calculus staged such a storm-trooping stunt in Nigeria’s political history. This is a watershed in our political memory.

Mr Obi was smart enough to espy the mood-swing of Nigerian politics and swiftly embed himself in its massive bowls. He grew in stature to fill the void of a unifying figure in Nigerian politics and swiftly took over its long abandoned totems of influence; a cultured language, respect for our diversity, dignity in the face of extreme provocation, a deep knowledge of what is wrong with Nigeria and a good idea of what it will take to fix her.

He appropriated the dreams of young Nigerians for a better country. He extracted their emotions and framed them in the right idioms. He demonstrated a rare kind of vigour, presence of mind and humility that are not typically Nigerian. He deployed buzzwords that resonated with the people. He became the dream; the Nigerian dream, in just about eight months.

Indeed, Obi’s impact on the landscape has been transcendental. It has awakened dead bones, unchained the soul of his Igbo people and made them question the long-held view that they do not easily surrender to the leadership of one man. Obi’s transcendental impact has uprooted the axiom, “Igbo enwe eze” (The Igbo are not attached to one king) and replaced it with “Isi tolu ugo na etu ugo” (Perfect head fits the crown). Igbo leadership is earned. The Igbo will submit to you if you earn their trust, confidence, admiration and awe. The Igbo submits to exceptionality and excellence. They submitted to the Great Zik, Ojukwu and Okpara –inspirational leaders whose capacity survived the test of fire. Obi’s iconography falls within this margin of reality.

It has confirmed, once again, that when a true leader emerges, the people will be inspired enough to follow him. It is akin to the appearance of a fluorescent light in the darkness around which moths and a variety of other insects will usually gather. The Igbo will follow you, if your path is bright and your hands clean. They will do what you say if your story is strewn with excellence and exceptionalism.

But Obi’s influence goes beyond Igboland. It created a clear change of attitude among Nigerian voters in the last presidential election. No Nigerian adult, who owns an Internet-enabled cellphone, could have missed the viral video clips of vote-buyers and election-riggers being beaten to an inch of their lives by angry citizens, who wanted an end to that horrible culture. Is it the loud insistence by crowds of determined voters that unscrupulous Independent National electoral Commission officials should not tactically disenfranchise them? Best still, who could have missed the large turnout of voters, half of them first-timers? All these were direct reactions to Obi’s rhetoric urging Nigerians to take back their country. Obi’s campaign mantra worked like magic. If it didn’t work at all, it made the noxious culture of buying votes at polling booths a risky undertaking to election riggers. At the moment, such moral victories may appear insignificant; but they constitute the building blocks for a comprehensive moral rearmament and rebirth of the society. They represent light at the end of the tunnel!

Again, could there ever be anything more symbolic than the sight of former President Olusegun Obasanjo moving round and mobilising supporters for Obi? Or more historic than Pa Ayo Adebanjo, the leader of pan Yoruba socio-cultural organisation, Afenifere, campaigning with so much vigour for an Igbo man? Or even more telling; the boldness of Aisha Yesufu pumping her fist and speaking fearlessly to Nigerians on the imperatives of electing Obi as president.

Such acts of courage give hope for the Nigeria of our dream. It is a faint reminder of the pre-Independence days when Zik won election in Yorubaland and when Umaru Altine, a Fulani, was elected Mayor of Enugu. That was when Nigeria was a nation; when our differences were our strength and not our weakness. Obi’s candidacy evoked such great nostalgia and hope. It spoke to the promise of Nigeria. All things considered, Obi is the undisputed turning point for a new Nigeria.

Closer home, he has midwifed the emergence of a new generation of leaders across Nigeria. Some of these people are plain folks, who have no money to bribe anyone to be voted into offices, but people whose stories inspire their respective communities. We have read stories of Donatus Matthew, a motorcyclist, who won the Kaura House of Representatives seat in Kaduna State, and a bus driver, Chimaobi Atu, who won the same seat for Enugu North/Enugu South in Enugu State. The story of Okey Ezea, who defeated Governor Ifeanyi Ugwuanyi to clinch the senatorial seat for Enugu North, is even more humbling. Ezea had stood election repeatedly in the past with nothing to show for it. But this time around, he became the young David that slew the giant, Goliath, with a sling. These are Nigerians, who, in all probability, would never have smelt political offices, but who have been voted to represent their people in the National Assembly through the LP. These leaders emerged from the atmosphere of possibilities created by Obi. They have moved swiftly from unbelief to hope. That is the story of renascent Nigeria.

On the whole, it is in the best interest of Nigeria that Obi happened to our politics. Never in our wildest dreams would it have been possible to think that Bola Tinubu would lose an election in Lagos State, that Nyesom Wike would resort to every-means-possible to retain his hold on Rivers State, or that a sitting governor would lose a senatorial election.

The superstructure of Nigerian politics has changed for good. We have finally realised that structure in politics is actually the people and that the ruling party does not enjoy any special advantages in Nigerian politics anymore. That may well be the ultimate victory for Obi and LP! It does not matter what the court eventually decides.