The Nation Newspaper

Category: Money

  • Afreximbank, Woodhall Capital partner on supply chain finance

    Afreximbank, Woodhall Capital partner on supply chain finance

    Afreximbank and Woodhall Capital have hosted a workshop on Supply Chain Finance and Factoring in Nigeria.

    The event served as a platform to explore the opportunities and challenges in the Payables Finance Industry in the country.

    Mrs. Folasade Ambrose-Medebem, commissioner for Trade and Investment, Lagos State and Mr. Abayomi Arogundade, who represented Dr. Olayemi Cardoso, governor, Central Bank of Nigeria (CBN) were among those who attended the workshop.

    The workshop was followed by a launch of the innovative Payables Finance product, branded as ‘Afreximbank Tradelink’ in partnership with Sterling Bank.

    The introduction of Payables Finance is the next stage on Afreximbank’s roadmap to promote Supply Chain Financing in Africa. The bank  provides US Dollar and Euro financing across Africa and plans similar partnerships in other African countries while incorporating local currencies.

    Arogundade, deputy Director of the Other Financial Institutions, Supervision Department highlighted the significance of the workshop.

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    He emphasised the collaboration, particularly in establishing regulatory frameworks for factoring. Both institutions are committed to exploring regulatory measures to support the development of supply chain finance.

    Mrs. Mojisola Hunponu-Wusu, founder of Woodhall Capital, praised  the CBN, for the support of financial institutions to the receivables financial industry.

    “We are thrilled by the overwhelming response to the workshop,” said Festus Adegboyega, chief executive officer at Woodhall Capital.

    He added: “The presence of esteemed guests from Lagos State and the Central Bank of Nigeria such as Mrs.  Ambrose-Medebem, further highlights the importance of collaboration in advancing the payables finance industry in Nigeria.

    “We believe that by equipping businesses and financial institutions with the knowledge and tools they need to navigate the complexities of supply chain finance and factoring, we can contribute to the sustainable development and growth of the African economy.”

  • Made by Nigerians fair for Kaduna April 12

    Made by Nigerians fair for Kaduna April 12

    The Made by Nigerians Project (MBN) has announced the Made By Nigerians Fair at the upcoming Kaduna Food Festival.

    The festival takes place from April 12 to 14 at the Murtala Mohammed Square, Kaduna.

    The three-day  event is expected to host 200+ pop-up stalls, over 50 restaurants, masterclasses led by experts,  where the best of Arewa culture would be on display.

    Read Also: Lagos-Calabar coastal road will connect all regions, says Umahi

    MBN’s Chief Product Officer, Ms. Chidimma Okoli, expressed her excitement about their collaboration with the Kaduna Food Festival.

     “This partnership with the Kaduna Food Festival embodies MBN’s mission. We’ll create an unforgettable experience showcasing the best local businesses and a delicious culinary adventure. This collaboration follows the recent launch of the MBN Marketplace, ” she said.

  • PMI report: purchase costs, output prices surge over currency weakness

    PMI report: purchase costs, output prices surge over currency weakness

    The impact of currency weakness on the Nigerian private sector was evident again in March, with the purchase costs rose at the sharpest rate on record, meaning companies increased their own selling prices at an unprecedented pace, Purchasing Managers’ Index report  for March has shown.

    The highlights of the report shared by Stanbic IBTC indicated that  the rate  of expansion in business activity ticked higher, but steep price rises acted to limit demand and the pace of new order growth eased to a four-month low. Meanwhile, employment decreased for the second month running.

    The headline figure derived from the survey is the PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

    The headline PMI was unchanged at 51.0 in March, the joint-lowest in four months. The latest reading pointed to a slight improvement in business conditions during the month, and one that was softer than the series trend.

    Price pressures remained elevated in March. In fact, the rate of purchase price inflation hit a fresh record high for the second consecutive month, largely due to the impact of currency weakness. There were also some reports of higher transportation costs. Employee pay was also increased in response to cost-of-living pressures, resulting in the sharpest rise in staff costs since last November.

    Read Also: PMI report: Business activities dip on cash shortage

    In line with the picture for purchase costs, the rate of output price inflation was also the steepest since the series began in January 2014 as close to 69% of respondents increased their charges over the month.

    With prices rising sharply, firms faced challenges securing new orders. Although new business increased for the fourth month running as some companies noted greater client interest, the rate of expansion was the softest in the current sequence of growth.

    While output and new orders continued to rise, employee resignations caused staffing levels to decrease marginally for the second month running. Purchasing activity returned to growth, however, following a reduction in the previous survey period. Where input buying increased, this was linked to efforts to meet new order requirements in a timely manner. This was also a factor behind sustained growth of inventories.

  • AFC raises $1.6b loan for infrastructure

    AFC raises $1.6b loan for infrastructure

    The African Finance Corporation (AFC) has raised $1.6 billion syndicated loans for infrastructure.

    The landmark transaction, commemorated at an event in Dubai, is a significant milestone in AFC’s unwavering commitment to develop critical infrastructure projects across the continent by enhancing its financial flexibility and diversifying its investor base.

    Testament to AFC’s appeal in global capital markets and the Corporation’s pivotal role in fostering economic growth and industrialisation in Africa, leading international financial institutions including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank and Standard Chartered collectively acted as Global Coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho and Sumitomo Mitsui Banking Corporation acted as Initial Mandated Lead Arrangers and Bookrunners.  Additionally, Bank of China and Société Générale S.A acted as Initial Mandated Lead Arrangers.

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    Initially launched at US$1 billion, the three-year syndicated loan was upsized after being oversubscribed by 49%, underscoring global investor confidence in AFC’s track record, creditworthiness, and its ability to navigate the current economic landscape marked by evolving global complexities. Proceeds from the loan will be deployed to advance AFC’s mission to consistently deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s potential, leading to prosperity for all Africans.

    “The global loan market’s overwhelming interest in Africa’s growth story is evident in the large pool of lenders that supported this syndication, making it AFC’s largest ever,” said AFC’s President & CEO, Samaila Zubairu. ‘’This is a significant endorsement of our commitment to ensure that infrastructure projects support local processing and value capture, thereby providing the much needed impetus to African industrialisation, enhanced export earnings and job creation.’’

    AFC’s position as the pre-eminent partner of choice between African and global stakeholders and investors for mutually beneficial outcomes reflects the Corporation’s relentless dedication to shaping a brighter and prosperous tomorrow for Africa and Africans.

    Financial institutions including Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg S.A. joined the syndicate as first-time lenders, showcasing AFC’s ability to build a global coalition of investors confident in the Corporation’s strong fundamentals as one of the highest investment-grade institutions in Africa.

  • Nestlé Nigeria, Ogun State collaborate on sustainable water

    Nestlé Nigeria, Ogun State collaborate on sustainable water

    To commemorate World Water Day 2024 with the theme “Water for Peace,” Nestlé Nigeria, the Ogun State Government and the Ogun-Osun Water Basin Authority organised an event to raise awareness about the importance of water conservation and responsible water management practices.

    The event which took place in Abeokuta, highlighted the role of Public-Private Partnership, (PPP) to spur collective action towards a water-secure future. Nestlé Nigeria has long been committed to sustainable water practices and has implemented various initiatives to reduce water consumption across its operations.

    Over the last three years, the company has achieved reductions of 48,898 m3 in water usage, demonstrating its dedication to sustainable water stewardship. “We are delighted to collaborate with the Ogun State Government to champion sustainable water practices on World Water Day 2024,” said Mr. Wassim Elhusseini, CEO of Nestlé Nigeria.

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    “Water is a precious resource, and it is our collective responsibility to protect and conserve it.

    Through this collaboration, we aim to make a positive impact on the environment and the communities we serve.” The head, Corporate Communications, Public Affairs and Sustainability at Nestlé Nigeria, Victoria Uwadoka said, “We are delighted to collaborate with the Ogun State Government to champion sustainable water practices on World Water Day 2024. Nestlé is committed to taking action to protect water resources for today and for future generations.

    We have therefore implemented water-saving measures to achieve water savings of 48,898 m3 across our operations in the last three years. In addition, we engage with our local communities and other critical stakeholders on water conservation efforts. Water is a precious resource, and it is our collective responsibility to protect and conserve it.

    The World Water Day event with the Ogun State Ministry of Environment and the Ogun- Osun River Basin Development Authority is part of the ongoing collaboration to promote more sustainable water stewardship and to make a positive impact on the environment and the communities we serve.”

    In his speech at the event, the Honourable commissioner for Environment, Hon. Ola Oresanya said “the responsibility for leveraging water for peace is not solely a government role but the joint responsibility of everyone. The need for cooperation by all relevant agencies, industrial and commercial facilities, academia, investors, drillers, and individuals at all levels is the crux of today’s message.”

    “Let us recommit to unite around water and use water for peace and to lay foundations of a more stable and prosperous future. It is time to foster harmony between communities and states, communities and industries, academia, and Government among others. water must be viewed as a shared interest so that management of scarce water resources can lead to cooperation rather than conflict”.

    Nestlé Nigeria also works closely with communities closest to their operations to improve access to clean and safe water through sustainable water projects such as the construction of water infrastructure and the establishment of community boreholes. As part of the collaboration with the Ogun State Government, Nestlé Nigeria will further expand its efforts to promote sustainable water practices. The partnership will focus on raising awareness about water conservation, educating communities about responsible water usage, and implementing initiatives to improve water access and quality.

  • NDIC, EFCC move against financial crimes ravaging banks

    NDIC, EFCC move against financial crimes ravaging banks

    The Nigeria Deposit Insurance Corporation (NDIC) remains committed to  ensuring that   those   who   contribute   to   the   failure   of   banks   are   properly   investigated   and prosecuted.

     The  Managing  Director   and   Chief Executive   of   the  NDIC,  Bello Hassan made the remark during a courtesy visit of the NDIC Management to the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede at the EFCC Headquarters in Abuja.

    Mr. Bello Hassan explained that the NDIC plays a critical role in combatting financial crimes   within   the   banking   sector   through   its  mandate   which   includes   bank supervision and liquidation of licensed banks.

    The ultimate objective, he added, is to protect   depositors’   funds   and   ensure   the   stability   of   the   financial   system.

    He commended the EFCC for its relentless efforts in the fight against corruption and financial crimes emphasising the indispensable role it plays as a key member of the Taskforce on Implementation of the Failed Banks Act which is chaired by the NDIC.

    Read Also: Why we did not recover $69.4 million electricity debt, by NBET

    Mr. Hassan elaborated on the existing partnership between the two organisations which led to the establishment of the NDIC Help Desk in the EFCC in August 2022. As   a   result,   he   added,   a   total   number   of   10   high   profile   cases   referred   to   the Commission are currently under investigation.

    The NDIC Boss called for enhanced collaboration in the recovery of Depositors’ funds to ensure that liquidation dividends are  paid to  depositors whose  monies were  lost as  a result  of bank  failures.

     He, therefore, solicited for the return of recoveries made by the EFCC on behalf of the NDIC to the Corporation’s coffers in order to facilitate the timely reimbursement of Depositors.

    The EFCC Chairman Mr. Ola Olukoyede emphasised the interconnection between criminal activities and bank failures, urging NDIC and the Central Bank of Nigeria (CBN)   to intensify  oversight   to   prevent   the   risk of  bank   failure.

    He   pledged   the EFCC’s commitment to deepening collaboration and synergising efforts in combating financial crimes, thereby safeguarding the integrity of Nigeria’s banking sector.

  • CBN: Remita’s choice as payment facilitator merit-based

    CBN: Remita’s choice as payment facilitator merit-based

    The Central Bank of Nigeria (CBN) has said that Federal Government’s selection of Remita to provide an electronic platform essential for facilitating payments from Ministries, Departments and Agencies (MDAs) to beneficiary accounts across commercial banks was based on merit.

    Director of Banking Services, CBN, Hamisu Abdullahi, spoke yesterday when officials of the apex bank appeared before the House of Representatives Public Accounts Committee to respond to queries about Remita’s operation of the Treasury Single Account (TSA) platform.

    The hearing was presided over by Bamidele Salaam, Chairman of the House Committee on Public Accounts. Salaam had said: “The investigation is not a witch-hunt targeting any company but rather a crucial step towards transparency and ensuring accountability for the federation’s revenue.

    “The CBN was directed to provide an electronic platform that would facilitate payments on behalf of MDAs to beneficiaries accounts in the commercial banks.

    “CBN deemed it fit to source for an alternative way of doing this and engaged two companies and out of the two, Remita, was selected based on merit and based on the fact they had been rendering similar services to commercial banks.”

    Managing Director, Remita Payment Services Limited, Mr. ‘Deremi Atanda, also highlighted the previous system’s shortcomings, where government agencies independently received funds and arbitrarily decided the timing and amount of operating surplus to remit, a practice that has been streamlined by the TSA.

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    “There has been an evolution and it has been positive for the country on account of TSA. Some things that started manually have now become automated. What MDAs were doing was that they were receiving inflows and at their instance determine what its operating surplus when to they remit,” he said.

    Atanda said the TSA initiative is designed to create a single window through which all inflows and outflows of government can be monitored in real-time for transparency and accountability and especially for the effective management of the government’s cash assets.

    It would be recalled that the Director-General, Bureau of Public Service Reforms, Dr Dasuki Arabi, in the past reported that the TSA has been instrumental in uncovering and removing approximately 70,000 non-existent employees from the civil service payroll. The government has realized savings of at least N220 billion through the Integrated Payroll and Personnel Information System (IPPIS)

    Atanda further explained how the government can track and account for every single transaction through a unique Remita Retrieval Reference (RRR) code assigned to each revenue inflow.

  • Lagos-Calabar highway: NASS assures adequate budgetary provision

    Lagos-Calabar highway: NASS assures adequate budgetary provision

    The National Assembly has assured of adequate budgetary provision for the completion of the Lagos-Calabar Coastal Highway which has a contract sum of N1.67 trillion.

    The Chairman, joint National Assembly Committee on Works, Sen. Barinada Mpigi,  gave the assurance when he led members of the committee on oversight visit to some selected federal highway projects in Lagos.

    The Ne Coastal Highway is an inter-state highway that is proposed to traverse about nine states along the coastal shoreline of the country.

    The 750 kilometre highway, handled by Hitech Construction Africa Ltd., will start from Lagos, and would terminate in Cross River, with a spur to the north central part of Nigeria.

    Mpigi who expressed the National assembly’s support for speedy completion of the work, appreciated the level of work done so far.

    “The coastal road is real and is life and I can testify that the ministry is doing the right thing. And with the expectant period, it is achievable, he said.

    On his part, Chairman House Committee on Works, Mr Akin Alabi, said that the house of representatives would work with the Senate President, High Speaker of the House of Representatives and the the two Committees on Works for adequate funding of the road.

     “We are going to work with both the Senate President, the Speaker and the committees on appropriation to make sure funding is not what will delay the project.

    “We have seen it over and over again in this country, where you have great intention when you want to begin a project, but along the line, you will run into trouble.

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    “But this is a project everyone is committed, both the Executive and the Legislature and it must be delivered. We must make sure that every fund released are accounted for it.

    “This is the kind of project, a legacy project that will put smile on people’s faces and we are all committed to achieving it,” Alabi said.

    Also, the Minister of Works, Sen. Dave Umahi, lauded the commitment of the contractor, Hitech Construction Company on the level of work so far done.

    “We commend Hitech. We are very confident that this project which is 700 kilometres, the phase two will be executed successfully under President Tinubu.

    “As a former governor of Lagos, he even acquired the right of way for the coastal highways but could not get a contractor at that point to start it.

    “He is a man that is very committed to development. We are submitting everything about this project to the President and he will be relating with national assembly in terms of funding.

    “Whatever funds that the national assembly will give us will be properly utilised.

    “When we construct roads under the renewed hope of the president, it will last for hundred years. He is the father of concrete technology in the country, ” Umahi said.

  • Alternative Bank, TK Tech Africa partner on $500m digital sukuk

    Alternative Bank, TK Tech Africa partner on $500m digital sukuk

    The Alternative Bank and TK Tech Africa are poised to transform the landscape of financial technology and non-interest banking in Nigeria through their innovative $500 million digital sukuk initiative.

    This partnership is pioneering the use of blockchain technology for the issuance, trading, and settlement of sukuks, championing ethical and Sharia-compliant investments in the country.

    Group Head of Structured Trade & Commodities Finance at The Alternative Bank, Gbenga Awe, emphasized the bank’s foremost position as a bank-tech, leveraging its digital innovations and competencies in the financial services sector. Awe underscored the bank’s efforts to create wealth by developing digital products for everyone interested in commodities and precious metals. According to him, the initiative will allow anyone to invest in the commodities market through tokenized alternative assets, providing unprecedented flexibility and accessibility.

    He affirmed that the bank’s involvement goes beyond just digital. “We are deeply engaged in the agricultural sector, with significant assets like cocoa, soybeans, sesame, precious metals, and warehousing facilities. Showcasing the bank’s preparedness to support the Sukuk initiative with tangible, real assets,” he elaborated.

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    Founder and CEO of TK Tech Africa, Oludamola Akindolire, spoke on the transformative nature of this collaboration. “We are setting a new benchmark for financial innovation in Africa, offering an ethical investment avenue through the synergy of Islamic finance and blockchain technology,” Akindolire stated. He highlighted the initiative’s target demographic as urban middle- to high-income Nigerians aged 25 to 60, highlighting its role in fostering inclusive economic growth.

    The initiative has received accolades from various industry leaders. Managing Director and CEO of Lagos Commodities and Futures Exchange (LCFE), Akinsola Akeredolu-Ale, commended The Alternative Bank for bringing significant assets to the table, underscoring the importance of engaging the youth in gold investment.

  • Wema Bank lifts over 100 women with cash

    Wema Bank lifts over 100 women with cash

    Wema Bank, has rewarded over 120 women across Nigeria with millions of Naira in the just concluded 8th monthly draw of its renowned 5 for 5 Promo Season 3, which was held in Benin, Edo state capital.

    The Wema Bank 5 for 5 Promo is a reward programme designed to support Nigerians across the country with monetary rewards for their personal and business use.

    The 3rd Season, which launched in July 2023, set out to disburse a total of N9,000,000 monthly to 120 active and transacting customers in monthly draws spanning a 10-month period. In alignment with the ongoing Women’s Month, Wema Bank went steps further from hosting the biggest International Women’s Day Event in Nigeria to allocating N7,250,000—a whopping 95% of the N9,000,000 cash prize stipulated for the 8th draw, to Nigerian women across the world; all within this month.

    Read Also: Wema Bank lifts SMEs with payment solutions

    This sum was distributed to over 100 women in cash prizes ranging from N25,000 to N1,000,000 each. As evident in Wema Bank’s activities throughout the month, the pioneering Bank has inadvertently solidified their position as the bank of choice for women and a financial institution relentless in its commitment to providing useful solutions, viable options and opportunities for women to achieve their personal and business goals.

    Wema Bank’s Divisional Head of Retail and SME, Ayodele Olojede, disclosed the bank’s motive for streamlining the wins in the 8th draw to skew more towards the women. “We cannot overemphasise our deep-rooted commitment to being a support system for women so we naturally went above and beyond this women’s month.