Category: Money

BIC, a manufacturer in the stationery sector, has reaffirmed its commitment to the local community and economy in Nigeria through its local production and capacity building.

The BIC manufacturing facility today employs around 500 team members, the majority of which are Nigerians, with more than 85 per cent female, shedding light on the company’s commitment to diversity, equality, and inclusion.

Its presence in Sagamu contributes to the country’s economy and creates jobs for residents of neighbouring and surrounding areas.

Speaking during a facility tour in Sagamu,  Ogun State,  General Manager at BIC Nigeria, Guillaume Groues said: “Nigeria is one of the biggest and most active economies with a young population in Africa and remains at the forefront for us to drive sustainable growth, in line with our Horizon Plan. We pride ourselves with our constantly growing operation and our impact on local communities, contributing towards the country’s socio-economic development. We look forward to further growth and investment in Nigeria,” he said.

Commenting on the occasion, Plant Director, Peter Ajakaiye, said: “We constantly work to maintain the high-quality, international standards at the plant, while building and leveraging local capabilities and expertise.

We are proud of our local production, where 100 per cent of our packaging material is sourced locally, and the iconic BIC Cristal pen and Lucky pens are locally produced. Our company’s purpose is to bring simplicity and joy to everyday life through creating high-quality, safe, affordable, and essential products – and our facility in Sagamu helps us deliver on that promise every day.”

In Nigeria for over four decades, BIC products have become a household necessity in the country. In 2019, the company further expanded its portfolio by acquiring the stationery brand, Lucky and launching its own production facility in Sagamu.

The Afrinvest 2022 Banking Sector Report (BSR) has shown that commercial banks recorded modest improvement in all regulatory indicators despite daunting economic challenges.

The report’s assessment of Central Bank of Nigeria (CBN’s) financial stability indicators showed that liquidity ratio and Non-Performing Loan (NPL) ratio for banks   improved by 130 basis points (up) and 75bps (down), respectively, to 42.6 per cent and 4.95 per cent. 

Although, the Capital Adequacy ratio (CAR) 14.1 per cent underperformed the June 2021 level by 140bps, all the indicators beat the prudential guideline limits of 30 per cent (LR), five per cent (NPLs), and 13 per cent (CAR), respectively, despite myriads of challenges in the business environment. 

The report, presented by Deputy Group Managing Director, Afrinvest West Africa Limited, Victor Ndukauba, showed that    the banks beat all the prudential guideline limits set by the Central Bank of Nigeria (CBN), an indication of their resilience and strength during the year.

It said the improvement is expected to be sustained over the coming years.

It explained that the fiscal challenges presented by weak Federal Government earnings have contributed to the muddling of monetary policy and strong use of Cash Reserve Ratio debits as a subtle strategy, in our view, to compensate for the inflationary effect of ballooned overdraft to the government. 

It insists that in increasing its developmental financing role, especially in agriculture financing, the CBN risks crowding out banks and private sector financing which is more effective in de-risking the sector and incentivising growth without moral hazards. 

“Importantly, the weak economic growth has robbed banks of the dividend of large and youthful demographics. Over the last 10 years to 2021, real GDP has grown by a compound annual growth rate (CAGR) of 1.9 per cent compared to 2.3 per cent CAGR for the population. 

“ For banks, this reality means that upscaling would be less efficient than in an economy where growth exceeds population expansion. Not surprising, Nigeria’s financial depth is weak as is for countries with high fertility rates and a fragile economic base,” it said.

To turn the tide, the BSR recommended that critical reforms be undertaken as matter of urgency to avoid a repeat of the negative trends seen in the last decade. 

In his comments, Group Managing Director, Afrinvest West Africa Limited, Ike Chioke, said Nigerians should prepare for reforms that will turn the economy around.

He said that looking ahead, Nigeria is set for another cycle of leadership in 2023 as the tenure of President Muhammadu Buhari, 30 state governors, and over 1,000 legislatures draw to a close. 

“At a time when there is daunting fiscal, monetary, and social challenges to surmount, Nigerians cannot afford to elect leaders who lack the competence, capacity, and creativity to find lasting solutions to the national quagmire. Even with a leadership that is willing to introduce the needed reforms, the present challenging environment would worsen before it can get better,” he said.

According to the him, regardless of who the President is, Nigerians would need to brace for impact. “Noteworthy, the political will of the incoming administration to imple- ment tough reforms that would curtail major economic leakages such as the subsidy regime on PMS (which has gulped over N7 trillion since 2010) and ensure the proper channelling of scarce resources to critical sectors would be a refreshing start,” he said. 

•Records N95.354b gross earnings in Q3

Agusto & Co has upgraded Wema Bank Funding SPV Plc’s  Series II Bond to ‘Bbb+’ with a stable outlook, from the previous ‘Bbb’ score.

Wema Bank Funding SPV Plc is a special purpose vehicle (SPV) set up by Wema Bank Plc for the issuance of debt securities.

Agusto in its latest rating assessment report, said it upgraded the rating of Wema Bank Funding SPV Plc’s Series II N17.7 b seven-year fixed rate bond to ‘Bbb+’ as a result of significant improvement on key metrics of assessment.

The rating assigned to the bond is hinged on the sponsor’s upgraded rating of ‘Bbb’ and is a notch higher given that 45 per cent of the bond proceeds was invested in a 13.53 per cent,  7-year Federal Government of Nigeria (FGN) bond and held in the custody of the Joint Trustees,’’ Agusto & Co stated.

It further noted that ‘Bbb+’ assigned Wema Bank affirmed the leading financial institution’s improved profitability, satisfactory asset quality and liquidity profile.

‘‘In the unlikely event of a default, this provides some recovery prospects. The upgrade in the rating assigned to Wema Bank reflects its improving profitability metrics, satisfactory asset quality and liquidity profile,’’ the report stated.

Managing Director, Wema Bank Plc,  Ademola Adebise said the latest positive assessment was exciting as the important rating adds to the series of positive outlooks that credible independent global ratings agencies have given to the bank which affirms the resilience of the bank as a stable financial institution.

“We are buoyed by these positive affirmations to recommit delivering innovative banking and financial solutions that foster inclusive growth for individuals and businesses, and more importantly pushing further Wema Bank’s frontiers as a major enabler of national economic growth,’’ Adebise said.

Also the bank recorded gross earnings of N95.345 billion in the third quarter ended September 30.

This represents 51.17 per cent year-on-year growth, from N63.077 billion posted in the same time in 2021.

According to the bank’s unaudited financial results for the third quarter of 2022, the growth in gross earnings reflects an increase in loans and advances and supported in a challenging macro economic environment. 

The result shows that Interest income grew by 55.14 percent y-o-y, benefitting from strong loan growth and a higher yield environment to N79.973 billion, from N51.550 billion in 2021.  

Similarly, Interest income from loans and advances grew by 40.23 percent to N62.245 billion in 2022 from N44.387 billion in 2021. The income from loans and advances had a 77.83 percent contribution to the interest income for the period.  

Net fee and commission income grew to N12.015 billion in the third quarter of 2022 from N8.722 billion in 2021 on the back of a rise in credit-related fees and income, electronic banking income, and trade transaction income, amongst others.

Fees on electronic products also grew by 44.55 percent to N2.550 billion from N1.764 billion in third quarter 2021. 

The bank recorded strong growth in profit before tax from N7.208 billion in 2021 to N9.457 billion in 2022, a growth of 31.2 per cent, while interest expenses grew by 79.65 per cent to N41.501 billion in 2022 from N23.100 billion in 2021. 

Commenting on the result, the Managing Director/CEO of the bank,  Ademola Adebise, attributed the sterling performance to the rising and expanding streams of income from both both fee based transaction lines as well as interest from efficient lending activities.

“Our excellent fundamentals as well as high efficiency in risk management and growing streams of income from various business lines are responsible for our upward trajectory across board.  We intend to finish the year on a high and further delight our shareholders with impressive dividend yield at the end of the financial year”, he said.

Also commenting on the result, the bank’s Chief Finance Officer, Tunde Mabawonku, described the result as the testament of the bank’s resilience in a difficult environment characterised by high operating cost and inflation.

“We are building systems and structures that will consistently deliver on results through efficient customer service, customised products and services, and effective internal control measures”, he said.

•Links cybercrime uptick to digitisation of banking services

The Financial Institutions Training Centre (FITC) has reiterated the rising spate of digital risks fueled by digitization of banking services. FITC Managing Director/CEO, Chizor Malize, disclosed this during the third edition of ThinkNnovation Cybersecurity Conference held in Lagos,   themed: “Accelerating the adoption Cybersecurity: Reimagine, Simplify, Grow.”

She explained that digital risk is one of the topmost risks in the world today, post-pandemic and is being fueled by rise in digitization of banking services. 

Over the past few years, there has been an increase in cyberthreats due to the post pandemic global acceleration of digitization across the financial services sector. This unprecedented increase in cyberthreats has resulted in significant financial losses to both corporate entities and individuals globally. 

To stem this negative trend, the Central Bank of Nigeria (CBN), revised the Risk-Based Framework and Policy Guidelines issued to Banks and Other Financial Institutions, and mandated Banks and Other Financial Institutions to comply with its provisions by January 1, 2023.

“Digitalization offers a large playing field for the growth of cybercrime. The risks continue to grow high, the threats continue to grow, the attacks become ceaseless, and every single one of us is prone, and while organizations drive the goals to digitize and automate operations, cyber risks proliferate. Every aspect of the digital enterprise has important cybersecurity implications”, she said.

Continuing, Malize disclosed that FITC Thinknnovation Cybersecurity conference was designed to tackle the rise in cybercrime by equiping Chief Information Officers (CIOs), Chief Information Security Officers (CISOs), and their teams to establish cybersecurity as an enterprise-wide service..

In a report by the Center for Strategic and International studies, it was stated that “Financial institutions are leading targets of cyber attacks. “Banks are where the money is, and for cybercriminals, attacking banks offers multiple avenues for profit through extortion, theft, and fraud, while nation-states and hacktivists also target the financial sector for political and ideological leverage.” 

“Regulators are taking notice, and implementing new controls for cyber risk to address the growing threat to the banks they supervise. The Strategic Technologies Program studies the evolution of cyber threats to the financial system and legal and regulatory efforts to strengthen its defenses,” the report said.

Chairman of the FITC Board and Central Bank of Nigeria (CBN) Deputy Governor Financial System Stability CBN, Mrs. Aishah Ahmad in her address also stated that there has been a lot of focus on financial institutions because of their interconnectedness. 

“We have also seen cyber incidents attacks on other critical infrastructure like pipelines in the US, hospitals in Germany, and so on around 2020 and we are not immune from these attacks in our country as well. The major countries in Africa that experienced cyber-attacks are large countries like South Africa, Nigeria, and the likes, but we saw an explosion of these attacks during and after the Covid-19 pandemic. However, these attacks have been largely unsuccessful, and we will continue to learn from these incidents”, she stated.

Furthermore, Mrs. Ahmad stated that organizations should focus on: having a cybersecurity policy administered at the board level; conducting desktop exercises, and sharing threat intelligence. Additionally, financial institutions should be mindful of smaller unlicensed third-party service providers. They should also look at the employees and users of financial institutions to create awareness.

Highlighting the issue of the vulnerability that comes with cyber-attacks even on individuals, the Keynote Speaker at the conference, CEO/Founder of Resolut Consulting, Canada, Daniel Monehin stated, “when you are attacked, data that you don’t even need or have ever accessed – these hackers gain access to it and if they have useful information that can be compromised, that’s it!” .

He said people easily recognize the threats of physical security, but often underestimate the risks of cybersecurity and that’s why people put things in place to ensure physical security, like the high walls, gates, CCTV, access codes, and so on, but there aren’t multiple measures like this, taken against imminent cyber-attacks. 

According to the World Economic Forum’s Global Risk Report of 2022, ransomware attacks have increased by over 435 per cent since 2020. 

Monehin who added that cyberattacks have become much more aggressive and more widespread also stated that, crypto is the currency of choice for hackers, and in 2020 alone over $400 million worth of crypto was paid out to hackers, and today, hacking is now a service where cyber mercenaries now offer ransomware attacks as a service to other criminals.  

Speaking further on how companies and organisations can build cyber resilience, Monehin stated that there are three things that organisations should focus on to build cyber resilience, and they are cooperation, creation and cultivation. He said companies should cooperate, not compete citing the examples of Europay, MasterCard and Visa cooperating to create the EMV chip. He said NIBSS as an organization can drive this initiative of bringing everybody together in Nigeria.

Representing the CEO of Nigeria Interbank Settlement System (NISS), Premier Oiwoh, the Chief Risk and Compliance Officer, NIBSS Temidayo Adekanye during his goodwill message spoke on the measures to curb cyber-crime. 

He stated that organisations must be constantly collaborative and innovative if we are to fight against the menace of cyber-attacks.  “We must make sure that we are consistently ahead of them. We must constantly change and challenge all assumptions, test our infrastructure, our people, and processes. 

Also, we must contend with supply chain attacks, and AI-based spear phishing” he stated. Recently we have seen an increase in cyber-crime as a service. There are actors out there offering their service for a price within Nigeria, becoming a standard business model with attacks and tactics evolving dramatically. “Let us not forget the human elements; the human factor is still the number one entry point in more than 80% of its occurrences”, he added.

During the plenary sessions over the course of the two-day conference, several discussions took a deep dive into the issues facing cybersecurity adoption in this part of the world, some of which include bringing things up to speed, such as highlighting that focus should be on simplification, in order to build trust and aid effective dialogue with the board in organizations; by simplifying and designing processes, systems, and defining roles with human vulnerability in mind, to make digital estate become less complex, and this makes it more securable. 

Also, simplifying communication; by translating cybersecurity vulnerabilities and issues into the language the business leaders understand, such as the economic realities, by linking cyber risks to business risks, will likely get their support. Simplifying third-party arrangements is also very important; therefore it is important to  work with only partners that foster secure behaviors and shape organizational culture. On the long run, this helps to build trust with the business’ users/clients. The importance of documentation can also not be overemphasized, every request and approval process must be recorded in black and white.

Research reveals that the future of Cybersecurity is Neurodiverse. To leverage the power of neurodiverse talents, boards and leaders must rethink work and resourcing arrangements, rework KPIs to carefully suit each talent, to encourage the diverse capabilities and unique skills that each talent brings to the job, embrace neurodiverse leadership by encouraging diverse perspectives.

Collaboration, even across organizations is key. Leveraging threat intelligence and seizing the learning opportunities presented in the incidents experienced and those shared by industry peers, will lead to greater wins in the industry, as opposed to competing, especially because of the peculiarity and diversity of the issue of cyber-crimes. 

The two-day cybersecurity conference brought together over 26 industry leaders, CISOs, CEOs and professionals as speakers, including Doyin Odunfa, MD/CEO Digital Jewels; Nkiruka Joy Aimienoho, Associate Risk Assurance Services & Cybersecurity Lead, PwC; Olusola Odediran, Ag. CISO, NIBSS; Alexander M.C Anago, Ambassador & Chief Data Officer, Institute of Information Management; Dr David Isiavwe, President, Information Security Association Africa; Oge Udensi, Regional Director, Cyber Governance SMBC; Lansana Daboh, Risk and Monitoring Officer, Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA); Abdulkadir Suara, Deputy CISO, Union Bank of Nigeria, Chimaobi Ezeibe, Partner, Technology Risk Consulting, KPMG, Canada; Fatimah Adelodun, Information Security Manager, Nigeria Bulk Electricity Trading Plc; Opeyemi Onifade, Practice Leader, Afenoid Enterprise Limited; Oyawiri Oghenefovie, CISO, Standard Chartered Bank, Nigeria; Jude Anietie, Senior Manager, Information Security, MTN Group; Zechariah Akinpelu, CISO, Unity Bank Plc; Kelly Orijude, Cybersecurity Manager, Ernst & Young; Dr Blaise Ijebor, Director, Risk management , CBN; Okechukwu Umenao, HOD, Office of the Chief Economist, SEC;  Johnson Alabi, Senior Manager, Financial Reporting Council of Nigeria; among others in a total of five plenary and 2 breakout sessions.

Malize said the aim of the conference is to provide a roadmap to identify risks deeper, grow enterprise-wide risk appetites, identify risk gaps and make better decisions about bridging the gaps. It is here to better equip professionals to create sound policies, standards, and frameworks for cyber risk management. The conference also provides insights on governance and regulatory requirements. All of these have proven absolutely necessary to the successful implementation of Cybersecurity around organizations and the world at large.

As the world-class, innovation-led and technology-driven knowledge organization, FITC in collaboration with the Nigeria Interbank Settlement Systems (NIBSS) developed the ThinkNnovation Cybersecurity Conference, which has held every year since 2020, as a part of  its continued commitment to enhance industry knowledge and provide a platform where stakeholders from around the world in the financial services and other sectors of the economy discuss salient issues on post-pandemic cybersecurity developments and how organizations can build cybersecurity resilience in an increasingly interconnected world.

Africa’s leading chemical and agro-allied company, Notore Chemical Industries Plc, has recorded a group operating income of N12.06 billion for the third quarter ended 30th September, 2022.

The company, in a statement by its Group Managing Director (GMD) and Chief Executive Officer (CEO), Mr. Ohis Ohiwerei, noted that its group year-to-date revenue stands at N 32.95 billion for the period ended 30th September 2022, compared to N 17.47 billion for the same period in 2021.

According to Ohiwerei: “Notore Chemical Industries Limited (Notore) recorded group year-to-date revenue of N 32.95 billion for the period ended 30th September 2022, compared to N 17.47 billion for the same period in 2021 representing an 89% increase year-on-year.”

He added that the company also posted “operating income of N12.06 billion, compared to Loss of (N3.49) billion in Sep 2021 (an increase of 446 percent year-on-year) attributable to higher revenues from urea production.”

He noted that Notore intends to ramp up the production of its product offerings including Notore

NPK fertilisers, seeds, and rice to further diversify the company’s revenue streams and increase profitability, adding “Successful achievement of these milestones further demonstrates the company’s commitment to its corporate vision to be a significant contributor to the development of Africa.”

Ohiwerei continued: “Notore’s market environment remains favourable, as fertilizer is a key input to Nigeria’s agricultural productivity and food sufficiency.

Nigeria is a top priority under the Africa Emergency Food Production Plan, a strategic initiative by the African Development Bank to mitigate the impact of the Russian-Ukraine war on food supplies in Africa.

“The recent disruptions in global markets have created an opportunity for Nigeria to be a suitable alternative for fertilizer importing countries. As the Federal Government continues to implement policies and initiatives to further boost the agricultural value chain, Notore intends to prioritize the domestic market, continue to improve its NPK presence in the market and leverage opportunities to meet demand both in the domestic and West African markets.”

Dangote Sugar Refinery (DSR) Plc recorded profit before tax of N36.27 billion in the third quarter.

Key extracts of the interim report and accounts for the nine-month period ended September 30, 2022 showed that pre-tax profit rose by N13.17 billion to N36.27 billion compared with N23.10 billion posted in the corresponding period of 2021.

Profit after tax rose from N15.51 billion to N24.83 billion while revenue went up from N195.50 billion to N288.32 billion.

Group Managing Director, Dangote Sugar Refinery Plc, Ravindra Singhvi in his remarks attributed the positive results in the nine months to key trade interventions introduced during the year and   positive market responses. He said, ”Our impressive performance in the period demonstrates our resilience in the face ofprevalent challenges, which rightly reflected in strong topline growth shown in thefinancial results.”

It should be recalled that Dangote Sugar Refinery recorded a profit before tax (PBT) of N29.73 billion for the half year ended June 30, 2022 while  profit after tax (PAT) hit  N20.24 billion in that period.

Meanwhile, Dangote Sugar Refinery has continued to implement its sugar backward integration projects plans and the enhancement of its Outgrowers Scheme to support the economic growth of the immediate communities. The aim is to develop a robust outgrower scheme with about 5,000 outgrowers when the projects have fully taken off, in addition to the achievement of other targets of its Sugar for Nigeria Project plan.

The key focus is of the sugar refiner is achievement of the Dangote Sugar Backward Integration Projects targets and put Nigeria on the path of sugar self-sufficiency and the world sugar map.

Employee Health & Safety as well as that of its partners remains a top priority at the company’s operations at the Apapa Refinery, its Sugar Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State. All processes are in compliance with stipulated  health and safety protocols.

Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.

Its Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets.

To achieve this, Dangote Sugar Refinery Plc acquired DSR Numan Operations (Savannah Sugar Company Limited), located in Numan, Adamawa State in December 2012, and embarked on the ongoing rehabilitation of its facilities and expansion of its 32,000 hectares’ sugarcane estate.

In September 2020, the scheme of merger between DSR and Savannah Sugar Company Limited was completed which gave birth to a bigger and stronger business with considerable opportunity for growth and delivery of superior benefits to all stakeholders. The expansion of the Numan sugar estate is still ongoing as well as the development of the greenfield site acquired at Tunga, Nasarawa State for the achievement of DSR’s sugar for Nigeria development master plan.

•Dangote, Elumelu, others for 2022 summit

Following the success of the Alaghodaro Investment dinner in Lagos, big ticket investors, including the Chairman of Dangote Group, Aliko Dangote; Chairman of Heirs Holdings, Tony Elumelu and Chairman of Caverton Offshore Support Group Plc, Dr. Aderemi Makanjuola, among many others are set to converge on Edo State for the 2022 Alaghodaro Economic Summit, scheduled to take place in Benin City, the Edo State capital.

The Alaghodaro Summit, in its sixth edition, is organised yearly to mark the anniversary of Governor Godwin Obaseki in office and showcases the progress being recorded in transforming the state into an investment haven.

The three-day summit will take place between Friday, November 11 and Sunday, November 13, 2022 with the theme, “Edo’s Transformation: Partnerships, Resilience, Impacts.”

“The summit has, in the past five years, attracted the inflow of over $2 billion investments into the state, including the $500 million attracted through the Edo State Oil Palm Programme (ESOPP). Saro Africa Group of Companies also began injecting about $250 million in the state through its Integrated Agricultural Project. The $10 million Edo Refinery project is another signature project. There are also investments in the technology, creative, manufacturing, food processing and energy sectors, among others.

“This year’s edition will provide another fine opportunity to consolidate on years of building a vibrant private sector-led economy, showcasing investment opportunities in Edo State, and providing a pivot for sustainable development and economic prosperity for the state,” Special Adviser to the Edo State Governor on Media Projects, Crusoe Osagie, said in a statement.

According to Osagie, the event will commence with the Edo Summit by 9am on Friday at the New Festival Hall in Government House, Benin City, while a State Banquet will be held, same day, at the Edo Hotel Marquee by 6pm.

He added, “There will be a Golf Tournament on Saturday, November 12, at the Benin Golf Course by 7am. The day-two of the summit will end with a Stage Play, ‘Hear Word’ at the Victor Uwaifo Creative Hub, Benin City by 2pm.

 “On Sunday, November 13, being the last day of the summit, a Thanksgiving Service will be held at the New Festival Hall, Government House, Benin City by 10am. The summit will finally come to a close with the launch of the Digital Benin Website at the Victor Uwaifo Creative Hub and Sound Stage, Benin City by 2pm.”

Other expected at the summit are the Founder of Stanbic IBTC Bank Plc, Dr. Atedo Peterside; Founder, Silverbird Group, Ben Murray-Bruce; Founder of Persianas Nigeria Limited, Tayo Amusan and the Managing Director, Saro International, Dr. Rasheed Sarumi, among others.

The governor’s aide further noted, “This year’s edition, apart from providing the platform for both local and international investors to tap into the investment opportunities created by the business-friendly disposition of the Governor Obaseki-led government, it will further showcase the impacts of the years-long public-private partnership that has translated to the remarkable transformation of various sectors of the economy including education, agriculture, healthcare, civil and public service, security and infrastructure, among others.”

Nigeria’s foreign portfolio deficit, which is the gap between outflows and inflows, narrowed considerably by 91.02 per cent (N14.50 billion) to N1.43 billion between January and August 2022, report on the fund’s movement has shown.

 The report released by Financial Derivatives Company Limited, said the performance is an improvement compared to N15.93 billion in the corresponding period in 2021.

According to the domestic and portfolio report of Nigerian exchange limited, total Foreign Portfolio Investment  in Nigeria stood at N149.97 billion in the first eight months of 2022, 21 per cent higher than N123.46 billion between January and August 2021.

The increase in the country’s foreign portfolio investment is due to the increased foreign investors’ appetite in Nigeria stocks. While the recent improvement is admirable, there are certain factors that will continue to fuel foreign investors’ apathy and limit Nigeria’s attractiveness to foreign investors.

The report explained that one is the lack of flexibility in the foreign exchange (forex) management framework and the inadequate structural reforms, which are major factors discouraging foreign investors from the Nigerian market.

Read Also: Lagos mall attracts  N31.5b foreign direct investment 

“Additionally, the lingering insecurity and heightened political uncertainties and risk ahead of the 2023 elections could discourage government, most of the diaspora flows are repatriated via unofficial channels,” it said.

This, it said, will reduce the ability of the government to meet its balance of payment obligations, ultimately putting the country in dire straits.

The World Bank recently revised downward Nigeria‘s economic growth forecast for 2022 to 3.3 per cent from its initial projection of 3.8 per cent in April. The Bank also lowered its 2023 growth target for Nigeria to 3.2 per cent from April’s forecast of four per cent.

“The downward revision was premised on multiple shocks affecting the economy including the global economic slowdown, spiraling inflation spurred by elevated food and fuel prices, and the rising risk of debt distress due to the current global tightening stance.

 “The IMF also lowered its 2023 growth forecast for Nigeria to three per cent from 3.2 per cent projected in July due to the lingering impact of global supply apathy and limit Nigeria’s attractiveness to foreign investors,” it said.

Pension Fund Administrators (PFAs) have invested N52.87 billion in Green Bonds, which are focused on climate change- related projects, The Nation has learnt

Green Bonds are types of debts issued by public or private institutions to fund themselves. It works like regular bond with one key difference: The money raised from investors is used exclusively to finance projects that have a positive environmental impact, such as renewable energy and green building.

The National Pension Commission (PenCom) in a document, said the investment was made as at July 2022.

PenCom also noted pension operators directly invested N118.31 billion pension funds in the Sukuk Bond issued by the Federal Government to finance road projects nationwide in 2021.

Read Also: Buhari meets Ban Ki-Moon, says Nigeria facing climate change challenges

The commission stated that as at December 31, 2021, N8.77 trillion, representing 65.35 per cent of the Assets under Management (AuM), was invested in Federal Government Securities and that out of that amount, pension funds directly invested N118.31 billion in the Sukuk Bond issued by the Federal Government to finance road projects nationwide.

PenCom stated that N14.30 billion was invested in Agency Bonds issued by the Nigeria Mortgage Refinance Company.

The report read: “It is pertinent to note that all investments of pension funds by the Pension Fund Administrators (PFAs) are made in accordance with guidelines and regulations issued by the Commission and guided by the primary objectives of safety and maintenance of fair returns.

“As at July 2022, pension fund assets stood at N14.36 trillion, of which N9.05 trillion has been invested in FGN securities, while Sukuk bonds gulped N96.25 billion”, the commission noted.