The Nation Newspaper

Tag: DFI

  • Govt, DFI sign deal to develop economic zones

    The Federal Government has signed investment agreements with three Development Finance Institutions- Afreximbank, Bank of Industry and the Nigeria Sovereign Investment Authority (NSIA) for the development of special economic zones in the country.

    A statement by the Strategy and Communications Adviser to the Minister of Industry, Trade and Investment, Bisi Daniels, said President Mohummadu Buhari who presided over the signing ceremony, assured that the special economic zones will become operational soon.

    Daniels listed the projects in the pilot phase to include Enyimba Economic City, Funtua Cotton Cluster and Lekki Model Industrial Park, saying the three DFIs are among the five to partner with NSEZCO and the Ministry of Finance Incorporated. NSEZCO intends to raise at least $500million in equity over the first five years to execute the ambitious strategy of becoming a leading investor in special economic zones in the country. The other investment partners are African Development Bank (AfDB) and Africa Finance Corporation (AFC).

     

    Called Project MINE (Made in Nigeria for Exports) the development of special economic zones under the direct supervision of the President Muhammudu Buhari, is a Presidential special priority intervention aimed at using the zones to attract substantial foreign and domestic investment for the development of world-class facilities dedicated to export-oriented manufacturing in a range of industries across Nigeria.

     

    Project MINE seeks to position Nigeria as the pre-eminent manufacturing hub in sub-Saharan Africa and as a major exporter of made in Nigeria goods and services regionally and globally; as well as boosting manufacturing’s share of Gross Domestic Product to 20 per cent; generating $30bn in annual export earnings; and creating 1.5 million new jobs all by 2025.

  • IFC, other DFIs raise $1.2b to support $9b projects

    The International Finance Corporation (IFC), a member of the World Bank Group, in collaboration with other Development Finance Institutions (DFIs), pulled together about $1.2 billion in concessional funds to support nearly $9 billion in private investment projects in emerging markets, a new DFI report, has revealed.

    The report, released by the DFI Working Group on Blended Concessional Finance for Private Sector Projects,

    The report was released on the sidelines of the Tri Hita Karana (THK) Forum on Sustainable Development at the 2018 Annual  Meetings in Bali, Indonesia, offered an extensive set of data on the extent to which blended concessional finance is used by DFIs—including where and in what sectors, and how much private finance was mobilised.

    It reflected data from IFC and 22 other DFIs—including the African Development Bank (AfDB), the Asian Development Bank (AsDB), the Asia Infrastructure Investment Bank (AIIB), the European Bank for Reconstruction and Development (EBRD), European Development Finance Institutions (EDFI), the European Investment Bank (EIB), the Inter-American Development Bank Group (IDBG) and the Islamic Corporation for the Development of the Private Sector (ICD).

    IFC’s Vice President, Hans Peter Lankes, said  the data in the report was important in helping “us track the effective use of concessional resources,”  pointing out that it is critical to use these funds in a responsible and disciplined way.

    Last year, the DFI Working Group adopted Enhanced Principles on blended concessional finance to ensure concessional funds were used to the minimum extent needed and to crowd in other investors as much as possible and when justified by market failures, demonstration effects in pioneering projects, important affordability considerations, or other economic factors.

    Lankes said: “As we address the opportunities and challenges we face with our partners in the working group, we encourage other partners—including donors—to adopt the Enhanced Principles and join the working group to share best practices in the use of concessional funds.”

    Blended concessional finance involves combining concessional funds and commercial financing from DFIs and the private sector. It allows DFIs to support private sector projects beyond what they would normally be able to engage in, particularly in higher-risk countries. For example, the report showed that of the nearly $9 billion in project financing unlocked by blended finance, more than $3.3 billion came from private lenders and investors.

     

     

    DFIs are increasingly leveraging financing of this type to channel private investment into challenging markets—particularly in Sub-Saharan Africa and in low- and lower-middle-income countries. IFC, for example, used blended finance to support more than 40 percent of its operations in lower-income and fragile and conflict-affected areas between July 2016 and June 2017.

    The report showed that in 2017 projects financed by DFIs, using concessional finance included innovative renewable energy projects in Africa and the Pacific, new technologies in Latin America and North Africa, innovative projects to mobilize finance for housing, guarantees for financial intermediaries to stimulate small and medium-sized enterprises (SMEs) development, and projects to develop agribusiness.

    The report also noted best practices and improvements in governance, decision-making processes, documentation, training, and effective monitoring to ensure concessional funds, are used efficiently.

  • BoI rated top performing DFI

    With a 92 per cent score and AA rating by the Association of African Development Finance Institutions’ (AADFI), the Bank of Industry (BoI) is among the top seven performing development finance institutions under the association’s Prudential Standards, Guidelines and Rating System (PSGRS).

    Indeed, the bank has also rewarded some of its customers and staff for renewed commitment towards impact delivery in the bank’s operations and in the real sector.

    Speaking at the Bank’s Impact Awards Night in Lagos at the weekend, BoI’s Managing Director, Rasheed Olaoluwa explained that the awards were designed to reward excellence and customers’ commitment to the growth of the real sector, adding that the bank’s staff were also rewarded for aiding the realisation of the bank’s goals and objectives.

    Olaoluwa noted that the Bank’s recent rating by the AADFI reaffirmed the bank’s commitment towards industrialising the nation’s real sector.

    Indeed, 46 African national institutions including 26 ordinary AADFI member-institutions and four special AADFI member-institutions and 16 non-AADFI member-institutions submitted their self-assessment to the peer review for evaluation in order to identify areas of weaknesses for self-improvement.

    “Today, we are celebrating impact across the real sector. No one can achieve success without the help of others. We are rewarding a team that has worked to deliver value”.

    We are also recognizing our customers that have impact in 2015 in their sectors”, Olaoluwa added.

    Specifically, Mouka Limited was recognised as this year’s best large enterprise directorate customer in loan repayment. .                                                      Innoson Technical and Industrial manufacturing was recognised as the best large enterprise directorate custo-mer in employment generation, while Kam Industries Nigeria Limited emerged this year’s best large enterprise directorate customer with real sector impact.

    For Small and Medium Enterprises, I.O. Furniture Nig. Ltd of the Lagos State Office emerged the best SME customer in loan repayment; Cobef International Limited (Rivers State Office) with 210 workers, was the best SME customer in employment generation; Saclux Industries Limited (Enugu SO) – Agro-processing (Palm Kernel Oil and Refined Vegetable Oil), was adjudged the best SME customer in real sector impact.

    Some of the bank’s employees emerged best project officers in different categories having met the criteria.

    For instance, Ndidiamaka Okuwakaogu emerged the best Project Officer in large enterprise directorate. Emmanuel Ojowuro of the Ondo State Office emerged the Best Project Officer in SME Directorate (SME-South) with 290% achievement for Approval Budget and 60% achievement for disbursement budget, while Aminu Yunusa Yusuf of the Kano State Office scored 85% achievement for Approval Budget and 81% achievement for Disbursement Budget to emege best Project Officer in SME Directorate (SME-South) For the long service award, Ijeh George Ifeanyichuckwu, Ibeh Charles Amaobi, Kantiyok Keziah Tabitha, Adesina Kareem Adekunle, Osuwa Mohammed Hassan, Olagunju Waheed Abiodun, Oseni Jimoh Ezekiel, and Omar Shekarau were recognized having served in the bank for between 10 to 35years.

  • Fed Govt to create Devt Finance Institution

    Fed Govt to create Devt Finance Institution

    • CBN extends Agric Credit Scheme to 2025

    To support industrial development in the country, the Federal Government said it will establish wholesale Development Finance Institution (DFI) to provide long-term funds for industrial development.

    Also, the board of the Central Bank of Nigeria (CBN) has approved the extension of Commercial Agriculture Credit Scheme from 2016 to 2025 to enable it fund more projects.

    Speaking yeterday in Abuja at the Eight Micro Small Medium Enterprises (MSME) Finance Conference where he also officially started the disbursement of N220 billion for medium, MSME development, President Goodluck Jonathan said the proposed institution was part of measures to enhance the contribution of MSMEs to the country’s economic growth and development.

    President Jonathan said the proposed DFI would provide long-term finance spanning up to 15 years for relevant entrepreneurs and industrialists especially people involved in tree crop production.

    He also disclosed that there were plans by the Federal Government to restructure existing DFIs for better performance and improved access to finance by MSMEs. He noted that as Africa’s largest economy with excellent prospects of becoming one of the world’s 20 largest economies by 2020, the challenges confronting MSMEs in  Nigeria must be addressed head on.

    He said: “MSMEs are recognised all over the world as engine of growth in any development oriented economy. Besides their inherent labour intensive production processes, they also provide a viable platform for job creation globally.

    “All over the developed world the contributions of MSMEs to GDP (Gross Domestic Product) average about 47 per cent; this shows clearly how important MSMEs are to us.”

    The president said a vibrant MSME sub-sector was indispensable for achieving sustainable transformation of the economy.

    The N220 billion MSME Development Fund, the president said will be received by participating financial institutions and state governments for onward lending to MSMEs across the country.