The Business Facilitation (Miscellaneous Provision) Bill 2022, also known as the “Omnibus Bill” meant to promote efficiency and transparency in micro, small and medium enterprises (MSMEs) operations, has passed  second reading at the House of Representatives.

The Bill also seeks to ensure the sustainability of business climate and give statutory force to Executive Order 001 of 2017 on the promotion of Transparency and Efficiency in the Business.

Special Adviser to the President on Ease of Doing Business/the Presidential Enabling Business Environment Council (PEBEC), Jumoke Oduwole, said the House had passed the first reading on June 22.

The Bill had also passed second reading at the Senate on July 20.

‘‘The Omnibus Bill is an intervention of the Presidential Enabling Business Environment Council (PEBEC) aimed at consolidating and amending outdated legislative provisions towards removing bottlenecks for micro, small and medium enterprises,” she said.

The Federal Executive Council (FEC) had approved the bill on March 23, which was a culmination of four years of collaboration by public and private sector stakeholders in the legal community anchored by the PEBEC through a sub-committee led by the Attorney-General of the Federation, and implemented by a technical working group with the Federal Ministry of Justice legal drafting team and representatives from leading law firms and consultancy firms.

Stakeholders eagerly look forward to the speedy passage of the Bill by both chambers of the 9th National Assembly and signing into law by Mr. President in order to reap the attendant benefits for the Nigerian economy,’’ the statement read.

Account holders are expected to tap into the Central Bank of Nigeria’s (CBN) N7.5 trillion market share for off-grid power firms expected to boost energy access, reduce poverty and bring financial services closer to the people.The apex bank insists that off-grid power companies’ operations,  energy access, financial inclusion and poverty reduction are closely linked and require rapid scale of Pay-As-You-Go (PAYG) off-grid technologies to thrive, writes Assistant Business Editor COLLINS NWEZE.

The Central Bank of Nigeria’s (CBN) policy on off-grid power companies operations presents an opportunity for prospective account holders to explore the benefits of being included in the financial services sector.

The number of new account openings by grassroots customers and micro, small and medium enterprise are expected to increase as the apex bank intensifies plans to activate   N7.5 trillion market share for off-grid power companies being integrated into the financial services sector to boost energy access, promote financial inclusion and poverty reduction.

In a guideline for the off-grid power companies’operations, the apex bank said energy access, financial inclusion and poverty reduction are linked and requires rapid scale of pay-as-you-go (PAYG) off-grid technologies to create trillion-naira yearly market opportunity for the country. It said the market penetration is at less than five per cent of total market potential.

The investment and credit opportunity from the CBN under the Solar Connection Intervention Facility will lead to new account openings by many Nigerians. It will also enable commercial banks to provide more high quality financial products, such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the adult population, especially the low-income earners.

Speaking on the plan taboos grassroots banking through power sector businesses, the President, Bank Customers Association of Nigeria (BCAN), Uju Ogubunka, earlier said the off-grid power scheme would lead to massive account opening, and reactivation of dormant accounts by new players in the market.

He said the conditionalities of the market, entry requirements and capacity to deal with power problems would determine how many people would enter the market and those that would open and reactivate dormant accounts.

“If the capital needed to get into into the market is not too high, many people will avoid it. In such case, the major players will be those who are already in businesses making money and wanting to diversify. But if the entry requirement is simple, it will see more grassroots participation and massive job creation,” Ogubunka, a former Registrar/Chief Executive, Chartered Institute of Bankers of Nigeria (CIBN), said.

According to him, more capital flows into the economy from offshore investors, which will galvanise economic activities for economic boom.

He said evidence worldwide shows that access to financial services contributes to growth and wealth creation and is, therefore, key to tackling the ‘poverty’ trap in Nigeria.

He said it is critical for regulators and policy makers to create an enabling policy environment to actively promote the demand for and the supply of financial services to the unbanked and under-banked.

Analysis of the CBN’s framework for the implementation of solar connectivity facility, showed that the scheme will complement the Federal Government’s effort of providing affordable electricity to rural dwellers through the provision of long term low interest credit facilities to the Nigeria Electrification Project (NEP) for pre-qualified home solar value chain players that include manufacturers and assemblers of solar components and off-grid energy retailers in the country.

Single digit interest facility

The facility will be administered at an “all-in” interest rate of not more than nine per cent yearly. However, as part of the CBN’s COVID-19 relief package, the interest rate to be charged up to February 28, last year will not exceed five per cent per year. Interest shall be payable by the loan beneficiaries in accordance with the approved repayment schedule outlined in the transaction documents.

The scheme will enable the manufacturing of solar components and balance of system, establishment/expansion/upgrade of solar manufacturing facilities,  assembly of solar components and balance of system and  repairs and maintenance of solar home systems and mini-grid equipment.

Also, to support the economic recovery in response to the COVID-19 pandemic, the Federal Government is implementing the Economic Sustainability Plan (ESP) to ensure the roll out of five million new solar-based connections in communities that are not grid connected. This programme is expected to generate an additional N7 billion increase in tax revenue yearly and $10 million in annual import substitution.

The solar connection scheme is a Federal Government initiative meant to expand energy access to 25 million individuals (five million new connections) through the provision of solar home systems (SHS) or connection to a mini-grid; increasing local content in the off-grid solar value chain and facilitating the growth of the local manufacturing industry; and incentivising the creation of 250,000 new jobs in the energy sector.

Interventions in energy sector

CBN recently released data on N1.63 trillion interventions in the energy sector in the face of consistent electricity grid collapse in the country.

In the CBN’s report on energy/ infrastructure interventions, the apex bank said as at May, last year, it released N15.71 billion to power sector players, including generation companies (GenCos) and gas companies (GasCos).

The funds came under the Nigeria Bulk Electricity Trading Plc – Payment Assurance Facility (NBETPAF) – bringing the cumulative disbursement under the facility to N1.30 trillion.

Also, N22.67 billion was also released to Distribution Companies (DisCos) for their Operational Expenditure (OpEx) and Capital Expenditure (CapEx), under the Nigeria Electricity Market Stabilisation Facility – Phase 2 (NEMSF-2).

Cumulative disbursement under the NEMSF-2 stands at N251.93 billion.

Also, under the National Mass Metering Programme (NMMP), the bank has disbursed N0.19 billion to DisCos for the procurement of electricity meters, bringing the cumulative disbursement for the procurement and installation of 865,956 meters across the country to N47.82 billion.

Interventions in energy/infrastructure are designed to improve investment and develop enabling infrastructure in the Nigerian electricity supply industry.

The International Monetary Fund (IMF) has reiterated its commitment to tackling food crisis and payment challenges facing the global economy.

Its Managing Director, Ms. Kristalina Georgieva, made this known at the weekend after the  IMF’s Executive Board approved a new Food Shock Window under its emergency financing instruments, the Rapid Credit Facility and Rapid Financing Instrument.

“The new financing window will provide additional access to emergency financing to countries that have urgent balance of payments needs and are suffering from acute food insecurity, a sharp food imports shock, or from a cereals export shock.The new financing window will be open for one year,” she said.

“For some time, the combination of climate shocks, the pandemic and regional conflicts has disrupted food production and distribution, driving up the cost of feeding people and families.

“Russia’s war in Ukraine has pushed the price of food and fertiliser even higher—hurting food importers and some exporters. As a result, a food crisis is spreading around the globe with a record 345 million people whose lives and livelihoods are in immediate danger from acute food insecurity.

“The IMF, working with partner institutions, is actively contributing to the international response to food insecurity, notably by providing policy advice and financial assistance. The newly established Food Shock Window will provide an additional line of defence after grants and concessional financing.

“We have worked extensively and expeditiously with our members and staff to finalise the proposal for the new Food Shock Window.

“At a time of such need and suffering, I am grateful to our membership and proud that the Fund has come together and responded so swiftly. We have worked with our members to secure additional channeling of SDRs, which can help provide support to low-income countries through this new food shock window.

“With this new financing window, the IMF will be providing additional assistance to help people in vulnerable countries deal with one of the worst crises of all: hunger.”

The World Bank Group will be raising $127 billion for mini-grip power funding by 2030.

The bank said it will be leveraging development partner funding and government investment to “crowd in” private-sector finance for the project.

It explained that solar mini-grids could provide high-quality uninterrupted electricity to nearly half a billion people in unpowered or underserved communities and be a least-cost solution to close the energy access gap by 2030.

“But to realise the full potential of solar mini-grids, governments and industry must work together to systemically identify mini- grid opportunities, continue to drive costs down, and overcome barriers to financing, ” the bank said.

“Around 733 million people – mostly in Sub-Saharan Africa – still lack access to electricity. The pace of electrification has slowed down in recent years, due to the difficulties in reaching the remotest and most vulnerable populations, as well as the devastating effects of the COVID-19 pandemic. At the rate of progress, 670 million people will remain without electricity by 2030,” the bank said.

Infrastructure Vice President, World Bank, Riccardo Puliti, said more than ever, solar mini-grids are a core solution for closing the energy access gap.

“The World Bank has been scaling up its support to mini grids as part of helping countries develop comprehensive electrification programs. With $1.4 billion across 30 countries, our commitments to mini-grids represent about one-quarter of total investment in mini-grids by the public and private sector in our client countries”.

“To realise mini-grids’ full potential to connect half a billion people by 2030, several actions are needed, such as incorporating mini-grids into national electrification plans and devising financing solutions adapted to mini-grid projects’ risk profiles,” he stated.

He explained that deployment of solar mini-grids has seen an important acceleration, from around 50 per country yearly in 2018 to more than 150 per country yearly, particularly in countries with the lowest rates of access to electricity.

This is the result of falling costs of key components, the introduction of new digital solutions, a large and expanding cohort of highly capable mini-grid developers, and growing economies of scale.

The bank explained that solar mini-grids have become the least-cost way to bring high-quality 24/7 electricity to towns and cities off the grid or experiencing regular power cuts.

“The cost of electricity generated by solar mini-grids has gone down from $0.55/kWh in 2018 to $0.38/kWh today. Modern solar mini-grids provide enough electricity for life-changing electric appliances, such as refrigerators, welders, milling machines or e-vehicles.

“Mini-grid operators can manage their systems remotely, and paid smart meters enable customers to pay as they use the electricity.  Connecting 490 million people to solar mini-grids would avoid 1.2 billion tonnes of carbon-dioxide emissions,” it said.

The Central Bank of Nigeria (CBN) is considering raising the capital base for Financial Technology firms (Fintechs) as the market share controlled by the payment platforms begin to expand.

CBN Director, Payment System Management Department, Musa Jimoh, who made this known during an event tagged ‘Collaborating for Industry Growth and Profitability’ organised by Interswitch.

The CBN has set capital benchmarks for firms involved financial technology and payment at N2 billion.

Those in the top category, dealing with switching and processing, as well as mobile money, will have a N2 billion shareholders’ funds unimpaired by losses, the regulator announced.

Some of the Fintechs are involved in switching and processing, mobile money, Payment Solution Services (PSS), Payment Terminal Service Provider(PTSP), Payment Solution Service Provider (PSSP) and Super Agent licences.

The event provided opportunity for industry players to discuss how to strengthen the digital payment ecosystem and position Nigeria as a force to reckon with on the global payment landscape.

Jimoh said technology is expansive and Fintech operators must be seen to have what it takes to meet customers expectations in terms of efficiency and safety of transactions.

“We want to ensure that every single entity we regulate have financial muscles,” he said.

According to Jimoh, CBN’s responsibility as a regulator is to create an enabling environment where all the entrants can thrive and compete healthily.

“We understudy all the interoperable operations of each technology company, and all the participants generally. And from time to time, we bring all these entities together to dialogue to enable us to decide what the best industry practice is in relation to Nigeria’s payment ecosystem.”

Speaking during the panel session, Managing Director, Interswitch Purepay, Akeem Lawal, said players in the payment industry must collaborate to provide opportunities to co-create solutions that make digital payment safer and further drive profitability.

He said: “Interswitch is committed to partnering stakeholders to drive financial inclusion through its innovative products and solutions. These products reaffirm the company’s continued drive to improving Nigeria’s digital payments landscape through innovation and the development of first-rate solutions and infrastructure that address pressing needs in the payments ecosystem.”

Lawal further said Interswitch will continue to enter partnerships that will not only simplify payments, but also drive prosperity across the continent.

The participants and industry leaders were drawn from banks, fintechs, micro-finance banks, telcos and other financial institutions reached the resolve that designing innovative financial products which speak to the needs of customers will spur growth and economic prosperity.

The experts noted that players in the financial space need to synergise to explore avenues for mutual growth which will in turn create a robust payment ecosystem.

During the event, Interswitch unveiled eight new products designed to address prevailing issues within the payment ecosystem, enhance business development and boost ustomer experience.

The products include Fintech-in-a-box, Fraud Solution-as-a-Service (FSAAS); Banking-as-a-Service; Payment-as-a- Service; Interswitch Security-as-a-Service; Mobile Banking-as -a-Service and Biometrics on POS and Value financing.

These products are tailored to provide seamless payment solution to banks, fintechs, micro-finance banks, other financial institutions and their customers. Essentially, these products will help to improve the digital payment solutions that financial institutions offer to their customers.

Critical pain points the products will be solving include protecting customers against digital payment fraud, effective value financing tools for lenders, seamless integration to payment channels, enhanced customer experience, among others.

The Central Bank of Nigeria (CBN) has said its $200 billion non-oil export revenue target policy has introduced new commodities to the market and created new channels for dollar earnings.

The Principal Manager, Trade and Exchange Department, CBN, Mrs. Anne Nnenna Ezekannagha, said the policy, named – FX- incentivises export earnings to encourage more dollar accruals to the economy, has major players in the solid minerals space as contributors.

She gave feedback on the scheme at the Finance Correspondents Association of Nigeria (FICAN) yearly workshop in Lagos.

According to her, Non-Oil Export Proceeds Repatriation Rebate Scheme remains the major anchor of the programme, which has a policy thrust to raise $200 billion in forex earnings from non-oil export proceeds over the next three to five years.

Speaking on the theme:  “Boosting Domestic Capacity for Sustainable Export Earnings.”, Ezekannagha said: “RT200 is an initiative that was launched by the CBN and is anchored on our rebate scheme. So, the idea is that we want to encourage exporters to repatriate their funds. A lot of exporters do not repatriate their funds and the RT200 is to encourage the repatriation of non-oil proceeds.”

“We have seen a significant improvement not just in the figures that are being repatriated, but also in the number of exporters that are willing to come to the formal sector. Because a lot of our export has been happening informally, but with this scheme, we have found that a lot more players in the export sector are willing to come to the formal sector.

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“So, we are also noticing not just the increase in the figures but also in the increase of the commodities that we are exporting that was reported earlier. Like the solid minerals, we are seeing more in the solid minerals and we are seeing more players in that sector, coming into the formal sector to report their exports and participate in the RT200.”

Also, Deputy Managing Director, United Bank for Africa (UBA), Muyiwa Akinyemi, said only 200 exporters were responsible for 95 per cent of the $4.2 billion the country earned from non-oil export in 2021.

In his paper entitled “Boosting Domestic Capacity for Sustainable Export Earnings- the UBA Perspective, Akinyemi said: “Top 200 non-oil exporters control over 95 per cent of the $4.2 billion of the industry volume in 2021.” He added that the Federal Government had projected to increase foreign exchange earnings from non-oil to $200 billion within three to five years.

He also said: “Major items of non-oil exports including cocoa, cashew, sesame seeds, hibiscus, fertilisers/chemicals, tobacco, hides and skin accounted for 85 per cent of total export.”

Akinyemi stated that the UBA “facilitated $1.34 billion (31 per cent) in non-oil export volume in 2021,” saying that the feat confirmed the UBA’s status as Nigeria’s number one export bank for three years running.

Director-General, Securities and Exchange Commission (SEC), Lamido A. Yuguda, noted the capital market had a significant role to play in contributing to the country’s sustainable foreign exchange earnings by attracting more foreign portfolio and direct investments.

Yuguda said the 10-year Nigerian Capital Market Master Plan (2015-2025) was built around four strategic themes, one of which is to “promote competitiveness by establishing practices that improve transparency, efficiency and liquidity and to attract sustainable interest in the capital market from domestic, as well as foreign investors and participants”.

In the face of educational funding crisis facing the country, the World Bank Group said its active funding portfolio for education in 95 countries now stands at $24 billion.

Its Group President, David Malpass, stated this at United Nations General Assembly 77.

In a speech entitled: “The Global Challenge of Addressing the Learning Crisis Event,” he said the bank’s support to countries covers the entire learning cycle.

“We have an active portfolio of $24 billion in education in over 95 countries and are the largest external financier of education for the developing world,” he said.

Malpass identified several competing needs and challenges facing many countries, including struggle to raise resources.

“We know that governments and communities are struggling to raise resources and prioritise their use in the face of severe overlapping crises. Governments face energy and food price shocks, high debt burdens, currency depreciation, sharp declines in international reserves, climate change, and the reversals in development caused by COVID-19,” Malpass said.

Despite these challenges, he said one of the best chances for a better future is to invest in education today and make sure each dollar of education spending is put toward improved learning.

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“Unfortunately, the latest data indicate that education spending in low- and lower-middle-income countries in 2022 will be below 2019 levels,” he said.

The World Bank Group boss said the world is facing full-blown development crisis.

He said basic literacy, numeracy, and foundational skills are critical to face the unprecedented losses in global learning caused by prolonged school closures during the COVID-19 pandemic.

“Already before the pandemic, over half of children in low-and middle-income countries were living in learning poverty, which is the share of children unable to read and understand a basic text by the age of 10. Unfortunately, that share has increased to an estimated 70 per cent in 2022. Combined with the plunge in growth and investment, the world is facing a full-blown crisis in development,” he said.

According to World Bank estimates, each month of school closures caused not only a month’s loss of new learning but also the loss of a previous month’s learning, a setback of two months at a critical time for foundational learning.

“With school closures reaching one to two years in many countries, this adds up to massive learning losses globally and affects countries regardless of income level. Additionally, the complete shutdown of pre-schools means that hundreds of millions of children face inadequate nutrition and lack of early stimulation. And in some countries, dropouts have increased, especially among adolescents from low-income families. Girls living in conflict-affected countries are two and a half times more likely to be out of school,” the bank said.

Without decisive action, today’s students could lose 10 percent of their future average annual earnings and are likely to worsen inequality.

Malpass said global data showed that poorer children are significantly harder hit.

“These sobering statistics underscore the need to secure foundational learning for all children today.

We know that digital training, scientific knowledge, critical thinking, and communication skills are essential, yet hundreds of millions of children are losing ground at a critical time,” he said.

“Four steps are needed to recover these losses and accelerate learning. First, countries need to keep schools open and increase the hours per week of instruction. Second, it is important to correctly match instruction to a student’s level of learning and instructional needs, not where they left off. Third, a strong focus on foundational learning is critical – literacy, numeracy, and core learning skills would help teachers and students target their efforts more effectively. And fourth, recovering from this learning crisis requires funding to support it,” he stated.

A new research report shows that $900 billion corner shops industry is doing better than predicted despite protracted supply chain issues and big-box and online retail competitors, but they are also facing digital payments challenges in emerging market countries like Nigeria, Kenya, and South Africa.

The report showed that 50 per cent of consumers visit their corner shop daily, and 24 per cent regularly use a store tab for credit purchases.

Also,  80 per cent of shopkeepers are eager for digital business and financial tools, which have the potential to increase profits by 60 to 100 per cent.

The study confirmed better-than-expected sales and that 94 per cent of consumers surveyed plan to shop as much or more at their corner shops in the future. Both shopkeepers and customers believe however, that corner stores will need to accelerate digital technology adoption to remain relevant and competitive.

The Digitising the Corner Shop research report, published by Flourish, a global fintech investor in partnership with Bain & Company and 60 Decibels, elevates the voices of more than 800 shopkeepers and 800 of their customers indifferent countries.

These primary research findings, along with accompanying Flourish analysis, provide shopkeepers, technology providers, and investors with fresh insights into this often overlooked $900 billion industry with informal retailing making up 67 per cent of retail across Kenya, Nigeria and South Africa.

“Our research proves that, even during the pandemic, predictions of the corner store’s demise may have been premature,” said Flourish Managing Partner Arjuna Costa.

“But while customer sentiment across the surveyed markets is enthusiastic, continued patronage will depend on further digitisation of store operations and customer responsiveness.The findings of our research can be applied to other markets in Sub-Saharan Africa with corner shops adopting some form of digital solution with the diffusion of mobile technologies in Africa solving many of the challenges that shop owners face, making it easier to track inventory, record sales, monitor cash flow, and supervise customers’ credit.

“Flourish estimates that when corner shops go digital, merchants can increase profits to 100 per cent, which may explain why 80 per cent of shopkeepers are eager for better business and financial tools. However, they remain slow to adopt them due to other pressing business tasks, data security concerns, lack of familiarity and limited access,” it said.

The Managing Director/CEO Financial Institutions Training Centre (FITC), Chizor Malize, has called on the National Insurance Commission (NAICOM) to lead the drive for financial inclusion, leveraging microinsurance, Takaful insurance, among other products, to drive innovation.

She spoke during the NAICOM Board retreat themed: ”Strengthening Board Resilience and Agility for Success”.

Malize said financial inclusion could be enhanced through tech-enabled insurance solutions, adaptable business models and products that give customers the opportunity to buy as they go.

She said digitisation is a must for every business to drive strategy and sustainability.

She said for businesses to succeed in maintaining economic and social relevance, key players needed to partner in offering innovative solutions for new and emerging risks.

The Commissioner for Insurance, Sunday Thomas,  stressed the need for acculturation of the board members into the public sector.

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The Chairman, NAICOM, Abubakar Sani, expressed the board’s expectations from other directors, adding that the commission is taking steps that will make the industry to be fully digitalised.

Permanent Secretary, Service Policies & Strategies, Office of the Head of the Civil Service of the Federation, Dr. Emmanuel Meribole emphasised the need for training and capacity development.

He stated that the revised Public Service Rule makes a case for standardised training for enhanced and adequate service delivery.

Director, Compliance, Certification & Monitoring, Bureau of Public Procurement, Ishaq Yahaya, said procurement needs to be done with the expected level of compliance and appropriation.

He charged the board to ensure a robust knowledge of the Procurement Act and an understanding of their role in procurement to ensure a harmonious working relationship with management and to avoid contravening the provisions of the Procurement Act.

Director-General, Bureau of Public Service Reforms (BPSR), Dr. Dasuki Arabi buttressed the need for boards to keep themselves abreast with the commission’s business and industry trends and to develop agility in their dealings.

“When public service organisations become agile, it enables new ways of working across policy, regulatory and service delivery. Agility protects the government from disruption,” he said.

Managing Partner, Imperial Law Office Attorneys, Mrs. Afolake Abubakar-Lawal emphasised the need for board members to be active  and the commission,  ethical conduct.

“Every board member is required to understand corporate governance guidelines and regulatory provisions, and their actions should be guided by these provisions,” she said.