Azeez Abiodun, chief representative officer of Mauritius Commercial Bank (MCB) shared insight into how the bank aims to support corporate and local businesses in Nigeria, especially as many struggle with multiple headwinds.
Abiodun highlighted the role of the Mauritius International Financial Centre (MIFC) in bringing in needed foreign direct investments (FDIs) and foreign flows required to stimulate economic activity and strengthen the naira.
He also spoke on how MCB intends to support partner financial institutions with foreign currency lines and facilities to on-lend or support trade business of their clients. Wasiu Alli brings the extract.
What’s MCB’s presence in Nigeria like, and what does the bank aim to offer?
MCB established a representative office in Nigeria, in line with its strategy of growing internationally outside Mauritius, where international for MCB is predominantly the African continent. Nigeria, as a major economy, is part of international strategy; the rep office is required to monitor the market on a firsthand basis, engage stakeholders, and enhance brand awareness. MCB aims to continue to offer our robust product line to the market, leveraging comparative advantages in facility structuring, foreign currency liquidity, financial market solutions, and sector expertise.
“MCB’s relationship model aims to become a partner bank with the ability to support businesses across regions.”
Nigeria is contending with high inflationary levels and tightening monetary cycles. How does this bode for MCB’s presence?
This is no doubt challenging; MCB has a target to support real sector operators with capacity and mechanisms to manage the cycles.
Nigeria is currently implementing economic reforms, and the business environment is challenging due to high interest rates, exchange rate instability, and infrastructure deficits. MCB’s relationship model aims to become a partner bank with the ability to support businesses across regions.
Our product offerings include account services, trade finance solutions, and financial markets, with the capacity for financing in foreign currency at competitive terms.
Nigeria, like Mauritius, is grappling with foreign liquidity shortages. How does MCB aim to drive liquidity into the Nigerian market?
MCB supports partner financial institutions with foreign currency lines and facilities to on-lend or support trade business of their clients. On the corporate side, MCB will be growing its focus on corporates with significant turnover and export-generating businesses to generate foreign liquidity.
Who are the major clients of the bank in Nigeria?
The client base and target market are well diversified. It includes indigenous oil companies operating in the upstream, midstream, and downstream sectors, which are particularly important given the divestment of international oil companies. It also encompasses large local corporations with regional presence or aspirations, multinationals operating in or seeking to invest in Nigeria, telecom sector operators, and private equity firms. Additionally, we serve as partners to banks and development finance institutions.
Can you share what potential clients should be aware of?
As all organisations, MCB has set criteria to onboard clients. We are particular about corporate governance and strong ownership. MCB is not a substitute for local banks; we have complementary capabilities, where MCB is able to support across borders and currencies.
“MCB channels investments between Mauritius, Nigeria, and beyond, connecting key trade hubs like Dubai, Lagos, and Mauritius.”
What key role will MCB be playing in assuring a client’s satisfaction in a rather volatile economy?
MCB has a long-term view and a strong track record in operating across African countries with similar economic challenges. MCB has the structuring capacity to de-risk accordingly. Overall, MCB combines the reliability of an African bank with international capabilities.
In what way is MCB looking to grow the Nigerian economy in terms of FDI and capital inflows?
Mauritius is an international financial centre with various benefits for investors to channel flow into Nigeria. MCB, the leading bank in Mauritius, is capable of facilitating these investment flows into Nigeria.
The prevailing macroeconomic situation in Nigeria presents an opportunity for the Mauritius International Financial Centre (MIFC) to position itself as a viable gateway for foreign direct investments (FDIs) and foreign flows required to stimulate activity and strengthen the local currency. I believe that the strengths of MIFC and MCB will be instrumental in achieving these objectives and supporting Nigeria’s goal of becoming a $1 trillion GDP economy by 2030.
MCB channels investments between Mauritius, Nigeria, and beyond, connecting key trade hubs like Dubai, Lagos, and Mauritius. MCB possesses expertise in structuring holding companies in Mauritius for tax efficiency and governance.
How does MCB intend to support local businesses in Nigeria?
MCB support will be bespoke to client needs and sectors, e.g., supporting corporate businesses importing raw materials or exporting finished products, with tailored structures to optimise FX needs; the ability to lend terms for infrastructure or project finance; leveraging strong ties with the private equity world and their investee companies, offering bespoke solutions to meet their needs; and selective involvement in oil & gas projects under strict criteria, focusing on real economic impact.
Your new role requires forging relationships with key stakeholders in both government and corporate sectors. How do you intend to pull this off?
MCB has existing relationships in the market that will be leveraged. The brand is well respected by stakeholders based on its track record; this fact has been reinforced since I started the role. In the short term, we plan to make MCB visible and more active in financial and corporate circles by systemically engaging stakeholders and decision-makers.
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