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As we celebrate this 42nd edition of the World Tourism Day, this is within the frame of reflection on the urgency of building a practice that is environmentally sensitive and future complaint. The need for a more inclusive, resilient and sustainable tourism has now forcefully come on the global agenda of governments, international organisations, businesses, and local communities, and we must all work together to mitigate the evident challenges and concerns, in a way that safeguards our planet.

 

It is a great delight to witness and mark the 42nd edition of the World Tourism Day (WTD). This is a day set aside to create awareness about tourism globally, while contemplating the different milestones that have been achieved so far, alongside the recognition of its importance as a crucial pillar of development, both here in Nigeria, and worldwide.

 

World Tourism Day offers an opportunity to come together and celebrate the many and varied accomplishments of our sector, particularly in its drive towards the attainment of the United Nations Sustainable Development Goals (SDGs). This yearly event celebrated on the 27th of September has become a formidable platform for constructive engagement with all tourism stakeholders across the value chain, and in different places across the world.

 

Of all sectors of the economy, tourism took the worst blow from the COVID-19 pandemic, and this has in turn highlighted the critical need to transform the industry as global tourism gradually recovers. Worldwide, tourism has entered into a durable stage of recovery, and it is quite heart-warming to note that this year alone international tourism has grown back to at least 60% of its pre-pandemic level. According to estimates from the UNWTO World Tourism Barometer, international tourist arrivals almost tripled in the first seven months of 2022, as against the same period last year, and this reveals the strengthening of demand, as travels restrictions are lifted in many more countries (86 at the last count).

 

 

The impact that tourism has borne and the need to transcend this for all times makes the theme of this year’s event, “Rethinking Tourism”, quite apt. It not only recognises the relevance of tourism as one of the vital economic sectors globally but, more so, seeks to reconsider the practice of tourism by putting people and the planet first, as it brings all stakeholders – from governments to businesses and local communities – together to share in a vision for a more sustainable, inclusive and resilient sector.

 

While tourism remains the largest employer of labour, providing livelihoods to millions of people, most notably women and youth across the world, yet this comes with the awareness that the ecosystem of this earth we call home has become fragile with the years. Hence, the composite of activities making up tourism need to be more responsive to the demands of sustainability, as tourism’s economic and environmental footprint is greater than that of any other sector.

 

It goes without much saying that the opportunities embedded in tourism are enormous. However, to fully utilise the potentials of tourism for economic growth, we must also recognise that we cannot continue in the old ways of practice, and there is the urgent need to reflect on and rethink what we do and how we do it.

 

We believe it is time to begin the transformation that the sector requires. Like most changes in approach, this will not be easy but we are already well on the way. The crisis that came with COVID-19 was a catalyst and inspiration for creativity, and change.

 

As efforts at rethinking tourism points the focus on the future, this is certainly a future in which Nigerian tourism is primed to be a major driver of, indicated in its positioning for greater activities and attraction. As the Honourable Minister of Information and Culture, Alhaji Lai Mohammed puts it, this edition of the World Tourism Day, “is particularly important…because of the right granted to Nigeria by the United Nations World Tourism Organisation (UNWTO) to host the first-ever UNWTO Global Conference on ‘Linking Tourism, Culture and the Creative Industries: Pathways to Recovery and Inclusive Development’.”

 

While tourism remains the largest employer of labour, providing livelihoods to millions of people, most notably women and youth across the world, yet this comes with the awareness that the ecosystem of this earth we call home has become fragile with the years. Hence, the composite of activities making up tourism need to be more responsive to the demands of sustainability, as tourism’s economic and environmental footprint is greater than that of any other sector.

 

He further points out that: “The conference which is scheduled to hold from 14th to 16th November 2022 at the National Theatre Complex, Iganmu, Lagos, provides and opportunity to showcase Nigeria tourism and creative assets. It also creates a viable platform to identify, promote and develop new models of stronger partnership between tourism, culture and the creative industries as highly interlinked sectors for inclusive economic growth and social development.”

 

Globally, the culture and creative industries constitute some of the huge drivers of economic activity that can be further purposed as greater stimuli for economic recovery. This is evident from their documented impact, seeing to the generation of an annual compound value of close to $2.3 trillion, as representation of about 3% of the world’s GDP, according to UNWTO estimates.

 

Moreover, about 40% of international tourists are observed as ‘motivated primarily by culture-related experiences’ for embarking on destinations. Therefore, it is quite safe to project that the culture and creative industries could become significant catalysts of recovery and growth in a resurgent global economy, steadily breaking out of the negative impacts of the pandemic.

 

The creative and culture industries in Nigeria are an extended composite of a number of interconnected and linked sectors, cutting through a sizeable gamut of economic activities and responsible for between 10 and 15 million jobs, from music to design, fashion, film, television, radio, photography, architecture, printing and performance arts. Also, hotel and hospitality, publishing, information technology, gaming, software development, advertising and digital marketing, etc.

 

The culture and creative industries have been some of the priority sectors earmarked for intensive development in the Federal Government’s stimulus strategy as laid out in the Economic Renewal and Growth Plan (ERGP). This is a major effort being made to recoup lost grounds and create new value that drives sturdier economic growth, thereby resuscitating and expanding the jobs and income pool.

 

At NTDC, we realised early enough that any proposed strategic path for recovery envisaged for the industry must leverage on innovative and disruptive tech ideas to enhance and promote domestic tourism. This form of tourism is cheaper, with lesser restrictions, and it offers educational opportunities to citizens of the country, whilst generating employment and revenue, in addition to reducing poverty. Domestic tourism galvanises economic growth across sectors, including agriculture and manufacturing, contributes to infrastructure upgrade in rural and urban areas by encouraging government’s commitment to its development, and it largely enhances the creative sector.

 

According to the UNWTO briefing note, “Tourism and COVID-19”, issue 3 of September 2020, domestic tourism is six times larger than international tourism and it accounts for more than a 70% share of domestic trips globally.

 

The vibrant promotion of domestic tourism is the first step to resetting the tourism and hospitality industry in a post-pandemic era where there are endless possibilities for development of our rural communities, and where a lot of our tourist sites are located.

 

The future of the tourism industry is here and we need to be prepared for the emergent opportunities and challenges, which with require a greater form of collaboration across sectors. Foremost, there is need to review regulations guiding the sector’s operations and operators, to standardise service delivery by both public and private sector partners and deploy a strategic stakeholder approach to the development of sustainable tourism practices.

 

Moreso, at the Nigerian Tourism Development Corporation (NTDC), we have focused on and given critical support to the country’s creative and cultural assets, with emphasis on the digital promotion of the diverse cultural expressions of our music, film, arts, dance, fashion, cuisine and festivals. These are all game changers that accentuate the desire to witness and experience Nigeria, as such intimately engaging the creative sector and tourism products to create new experiences for targeted consumers, tourists and investors.

 

In line with our agenda to encourage domestic and regional tourism, we created the Tour Nigeria brand to drive the domestic consumption of our tourism assets and products, create new channels of tourism markets, along with employment, and increase the nation’s GDP, by boosting spending that will grow the economy, among others. Tour Nigeria is poised to strongly complement international recovery efforts by stimulating demand locally in a way that grows the confidence to inspire Nigerian destination marketing internationally.

 

The future of the tourism industry is here and we need to be prepared for the emergent opportunities and challenges, which with require a greater form of collaboration across sectors. Foremost, there is need to review regulations guiding the sector’s operations and operators, to standardise service delivery by both public and private sector partners and deploy a strategic stakeholder approach to the development of sustainable tourism practices.

 

Secondly, there is the necessity of effective participation by, and community ownership at rural levels, as agents of change in tourism transformation. The third level requires the deployment of technology and digital techniques for easy and safe travel.

 

The potentials of tourism are enormous and we all have a shared responsibility to make sure it is fully realised. We hereby call on all tourism stakeholders and everyone at the base of the broad and diverse tourism pyramid to pause, reflect and rethink what we do and how we do it.

 

Tourism entrepreneurs are encouraged to embrace technology to gain more mileage and penetration, and acquire adequate knowledge in the proficient use of digital platforms to promote and market existing tourist sites and attractions. This is in addition to ensuring effective service delivery and sustainable practices to grow and protect the tourism industry.

 

With over 147 million active Internet subscriptions and a tele-density of almost 97%, we have a readymade and vast domestic market for the development of tourism locally.

 

As we celebrate this 42nd edition of the World Tourism Day, this is within the frame of reflection on the urgency of building a practice that is environmentally sensitive and future complaint. The need for a more inclusive, resilient and sustainable tourism has now forcefully come on the global agenda of governments, international organisations, businesses, and local communities, and we must all work together to mitigate the evident challenges and concerns, in a way that safeguards our planet. The future of tourism is here, and it depends on our collective senses of responsibility.

 

*Folorunsho* *Coker* is the Director General of the Nigerian Tourism Development Corporation (NTDC) and the chief marketer of the Nigerian destination.

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Business

ZENITH BANK ENDS 2023 ON A HIGH WITH REMARKABLE TRIPLE-DIGIT TOPLINE AND BOTTOM-LINE GROWTH

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Zenith Bank Plc has announced its audited results for the year ended December 31, 2023, achieving a remarkable triple-digit growth of 125% in gross earnings from NGN945.6 billion reported in 2022 to NGN2.132 trillion in 2023. According to the audited financial results for the 2023 financial year presented to the Nigerian Exchange (NGX), this impressive triple-digit growth in gross earnings resulted in a Year-on-Year (YoY) increase of 180% in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023. Profit After Tax (PAT) also recorded triple-digit growth of 202% from NGN223.9 billion to NGN676.9 billion in the period ended December 31, 2023.

 

The increase in gross earnings is primarily due to growth in interest and non-interest income. Interest income increased by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023. Non-interest income grew by 141% from NGN381 billion to NGN918.9 billion in the same period. The increase in interest income is attributed to the growth in the size of risk assets and their effective repricing, alongside the rise in the yield of other interest-bearing instruments over the year.

 

Growth in non-interest income was driven by significant trading gains and an increase in gains from the revaluation of foreign currencies.The cost of funds grew from 1.9% in 2022 to 3.0% in 2023 due to the high interest rate environment while interest expense increased by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023. Notwithstanding the 32% growth in operating expenses in 2023, the Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023 due to improved top-line performance. Return on Average Equity (ROAE) increased by 118% from 16.8% in 2022 to 36.6% in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns. Return on Average Assets (ROAA) also grew by 95% from 2.1% to 4.1% in the same period.

 

The Group has continued to deepen its market leadership in key corporate and retail deposit segments as customer deposits increased by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023. Its retail drive continues to yield dividends as retail deposits now constitute 46% of total deposits (compared to 44% in 2022) and grew by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023, also reinforcing increased customer confidence in the Zenith brand.Total assets increased by 66% from NGN12.3 trillion in 2022 to NGN20.4 trillion in 2023, largely due to growth in total deposits and the revaluation of foreign currency deposits. Gross loans grew by 71% from NGN4.1 trillion in 2022 to NGN7.1 trillion in 2023 due to the revaluation of foreign currency loans and the growth in local currency risk assets. As a result of the disciplined and diligent approach to risk assets creation and management, the loan growth did not significantly impact the Non-Performing Loans (NPL) ratio, which increased marginally from 4.3% to 4.4% despite the heightened risk environment and challenging operating environment, an attestation to the Group’s resilience despite headwinds and a challenging macroeconomic environment. Also, the prudential ratios remain within regulatory thresholds, with the Capital Adequacy Ratio (CAR) and liquidity ratio at 21.7% and 71.0%, respectively, at the close of 2023. As a demonstration of its commitment to shareholders, the bank has announced a proposed final dividend payout of NGN3.50 per share, bringing the total dividend to NGN4.00 per share.In 2024, the Group will complete the transition to a holding company structure, which is anticipated to position it advantageously for exploring emerging opportunities in the Fintech space while bolstering its digital and retail banking initiatives. Furthermore, the Group is undertaking urgent necessary actions to meet the new minimum NGN500 billion equity capital requirement to maintain its international authorisation within the timeframe stipulated by the Central Bank of Nigeria (CBN).

 

This will strengthen its presence in key markets to continue positioning for sustainable growth and value addition for stakeholders.Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being recognised as Best Bank in Nigeria, for the fourth time in five years, from 2020 to 2022 and in 2024, in the Global Finance World’s Best Banks Awards; the Best Bank for Digital Solutions in Nigeria in the Euromoney Awards 2023, being listed in the World Finance Top 100 Global Companies in 2023; being recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 14th consecutive year, in the 2023 Top 1000 World Banks Ranking published by The Banker Magazine; Best Commercial Bank, Nigeria, for three consecutive years from 2021 to 2023, in the World Finance Banking Awards; Best Corporate Governance Bank,

 

Nigeria in the World Finance Corporate Governance Awards 2022 and 2023; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best in Corporate Governance’ Financial Services’ Africa, for four successive years from 2020 to 2023, by the Ethical Boardroom; Most Sustainable Bank, Nigeria in the International Banker 2023 Banking Awards; Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Banking Awards.Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021; Bank of the Year 2023 and Retail Bank of the Year for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. Similarly, Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most Responsible Organisation in Africa 2021 by SERAS Awards.

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GTCO Plc Releases 2023 Full year Audited Result …….. Reports Profit Before Tax of ₦609.3billionLagos, Nigeria – April 2024

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Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the year ended December 31, 2023, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE). The Group reported profit before tax of ₦609.3billion, representing an increase of 184.5% over ₦214.2billion recorded in the corresponding year ended December 2023. The Group’s loan book (net) Increased by 31.5% from ₦1.89trillion recorded as at December 2022 to ₦2.48trillion in December 2023, while deposit liabilities grew by 63.7% from ₦4.61trillion in December 2022 to ₦7.55trillion in December 2023.

 

The Group’s balance sheet remained well structured, diversified, and resilient with total assets and shareholders’ funds closing at ₦9.7trillion and ₦1.5 trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9%, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.2% in December 2023 from 5.2% December 2022. However, Cost of Risk (COR) closed at 4.5% from 0.6% in December 2022 owing to worsening macros which caused significant increase in ECL variables.Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said: “The challenging operating environment of 2023 truly tested the business model we put in place for the Holding Company, for both our banking and non-banking business verticals.

 

Harnessing the Group’s synergies yielded a strong performance, allowing us to strengthen our foothold in banking whilst also building viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers. Also important to our success is our relentless obsession with innovation and offering great customer experiences as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld.”Mr. Agbaje added: “In a landscape characterised by evolving regulatory reforms, global uncertainties, and heightened competition, we have continued to leverage our inherent strengths and capabilities to unlock significant value, creating more opportunities for the businesses and individuals we serve.

 

As we navigate the challenges and opportunities that lie ahead, we are confident that our robust underpinnings and focus on flawless execution will continue to drive sustainable growth across all our operations and deliver long-term value for our stakeholders.”Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 50.6%, Pre-Tax Return on Assets (ROAA) of 7.6%, Full Impact Capital Adequacy Ratio (CAR) of 21.9% and Cost to Income ratio of 29.1%.GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, and the United Kingdom alongside non-banking verticals in HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers. Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years. Recently, Guaranty Trust Bank was recognized as Nigeria’s Best Bank and Best Bank in CSR at the 2023 Euromoney Awards for Excellence, Best Banking Group in Nigeria by World Finance, and Best Bank in Nigeria by Global Finance. GTCO’s Guaranty Trust Bank is featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker.

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