The Nation Newspaper

Tag: funds

  • BoI disburses N780 billion as loans, intervention funds

    BoI disburses N780 billion as loans, intervention funds

    The Bank of Industry (BoI) yesterday said it disbursed a total of N780 billion last year as loans and intervention funds to the nation’s real sector and other key sectors of the economy.

    Its Managing Director, Rashid Olaoluwa, who spoke at the yearly conference of the Nigerian Institution of Estate Surveyors and Valuers in Osogbo, Osun State, said the bank has also increased its intervention to critical sectors of the economy within the last five years, specifically between 2010 to 2014.

    He said: “BoI has become impactful within the last five years and at least 1.8million jobs have been created through such efforts.  Before 2009, the level of intervention was below N30 billion but we have been able to improve access of customers to the funds as well as increase their capacity in the utilisation of such facilities.

    “We are doing a lot of things to ensure that we can provide that comprehensive support to our small and medium enterprises. We are reviewing our regional status to state offices in order to be able to serve our customers better.”

    He also tasked members of the institution on the need to adhere to strict professional ethics adding that valuation of assets remained a critical aspect of financial intermediation that is often fraught with malpractices.

    According to him, it is often discovered that false values are placed on assets, adding that this practice is prevalent in an industry where professionals have decided not to adhere to ethical guidelines.

    He said:  “Development and financial institutions most times discover that the value placed on some assets does not represent the reality and this is affecting financial intermediation by development finance institutions. Estate valuers play a critical role in the society as they are at the centre in placing value on assets. As a bank, we depend on their judgment.  The institute needs to task its members on the need to embrace fair and ethical practice while performing their duties.

    “Similarly, professionals in the estate valuation industry cannot afford to ignore the place of technology in the discharge of their duties in other to be globally recognised and competitive.”

  • Fed Govt pledges more funds

    The Minister of National Planning, Dr. Abubakar Suleiman, has praised the management of UNILORIN for the judicious use of funds provided by the Tertiary Education Tax Fund (TETFund) to improve its facilities.

    Suleiman, who made the observation at a special interview programme on UNILORIN 89.3 FM, also assured the university that the Federal Government would commit more resources through TETFund to help the university expand its facilities even more.

    The Minister, who was on an unscheduled visit to the university to inspect some projects, said: ”You have done so much at the University of Ilorin by committing the resources allocated to you judiciously.

    “I assure you that we shall do more; we shall give you more resources in the next coming calendar 2015. We, the executive and the National Assembly, shall commit more resources to the University of Ilorin,” he stated.

    Among the projects inspected are the Researchers’ Village, the Central Research Laboratory and the Entrepreneurship Centre.

     

  • Abuja power station, refinery delayed by funds, others

    Abuja power station, refinery delayed by funds, others

    Lack of support from banks, bureaucratic bottlenecks, infrastructural deficit in the host communities, among others, are responsible for the slow pace of work at the proposed power station and modular refineries in Abaji, the Federal Capital Territory, the Managing Director, Jehata Nigeria Limited (owners of Abuja Power Station in Abaji), Jameel Jammal, has said.

    He told The Nation that the resolve of the company to build the power station and the refineries was borne out of the desire to improve the energy needs of Nigerians, adding that funds have hindered the project.

    He said local banks have refused to show interest in the project by not lending to the company. “One of the problems facing the project is funds. Banks are not ready to make funds available for the project. Besides, they are not ready to assist by way of standing for the company as guarantor. When you are bringing foreign investments into the country, you need a local bank to stand for you to guarantee the foreign loans you are going to use for the project.  But, this was not forthcoming,” he said.

    He said the company is awaiting  the government to approve the land for the project. “We have been waiting for approval of the land by the management of the Federal Capital Territory.  We want the Minister of Federal Capital Territory to intervene to get the land. We are not asking for the land for free.  The communities in which the land is located are cooperating with us. They have welcomed us. But getting approval is a problem.  Besides, there are no basic amenities in the area. Anytime there is a rain, the inhabitants of the area cannot come out because of environmental damages from flood. They are happy that we are coming to build a new town for them. A town that would boast of electricity, water, and gas, among others.”

    Jammel said the modular refineries will refine 25,000 barrels of crude oil per day, adding that the refineries will have five different lines of production. “There would be kerosene, Premium Motor Spirit premium motor spirit (PMS), AGO (diesel), jet fuel, and gas section. It will be a big project covering expanse of land. The stage we are is getting the land. We are just buying time on this issue. We believe that there would be a change in the FCT administration; we believe that the new administration when it comes would help us. We have gone to the Presidential Task Force on Power to lay our complaints. Till now, no positive response, the whole project is being frustrated,” he added.

  • No restriction on foreign investors repatriating funds, says CBN

    The Central Bank of Nigeria (CBN) has said it will not impose any restriction on the financial market’s regime of “free entry, free exit”, allying fears that the pressure from declining foreign reserves and devaluation of Naira might force the government to impose capital control measures.

    Foreign investors account for about 53 per cent of transactions on the stock market with transactions valued at more than N1.5 trillion in 2014.

    Concerns about political, currency, fiscal and monetary risks, among others, have seen a spike in foreign outflows. The resultant pressure on foreign exchange has exacerbated the depreciation of the Naira.

    But the CBN said in spite of the pressure, the apex bank would not resort to imposition of capital control, which last vestiges were removed in 2009.

    CBN Governor, Mr. Godwin Emefiele, said capital control is not an option in the bank’s fiscal and monetary management.

    According to him, Nigeria wants to maintain its status of a “free entry, free exit” market, where foreign investors will not be impeded in their legitimate decisions to invest their funds in the country and also to take profits, repatriate their dividends and capital gains or outright divestment.

    Emefiele was asked to respond to the question on capital control by President Goodluck Jonathan during the interactive session with stakeholders in the capital market at the Nigerian Stock Exchange (NSE). President Jonathan indicated that the Federal Government would not interfere with such position of the apex bank, noting that regulatory agencies are in the position to take the best decisions on their areas of control.

    The CBN Governor pointed out that the preponderance of foreign investors in the stock market was a reflection of the foreign investors’ appreciation of the flexibility of the market, among other factors.

    While acknowledging the continuing pressure on the foreign exchange and the decline in foreign reserves, Emefiele reiterated that capital control would not be an option for the government.

    Naira-Dollar exchange rate closed weekend at about N200/$1. Nigeria’s foreign exchange reserves had fallen to $30.87 billion on March 4, a decline of 9.04 per cent from $33.94 billion recorded a month earlier.

    Foreign investors had taken out more than N154 billion in portfolio investments in 2014 as concerns over Nigeria’s risk profile saw many foreign investors opting for the sideline in spite of the attractive valuations of Nigerian equity investments.

    The latest Foreign Portfolio Investment (FPI) report of the NSE showed that Nigeria recorded a foreign portfolio investment deficit in 2014 as against surplus recorded in 2013. The report, obtained at the weekend, indicated that Nigeria recorded negative net foreign portfolio position of N154.14 billion in 2014 as against a positive net position of a modest N20.48 billion in 2013.

    The NSE report is regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active investment bankers and stockbrokers. Nigeria  operates a mono stock exchange, which makes the NSE the sole gateway to the nation’s stock market and the NSE’s benchmark indices, the country indices for Nigeria.

    The NSE report used two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy. Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE.

    The 12-month report showed that foreign portfolio outflow was N846.53 billion as against inflow of N692.39 billion in 2014, representing a net deficit of N154.14 billion. In 2013, total foreign inflow stood at N531.26 trillion compared with outflow of N510.78 trillion, leaving a positive balance of N20.48 billion.

    The report showed a notable spike in foreign transactions, although the negative colouration indicated that the propensity was towards divestment rather than investment. Total foreign transactions rose by 52.5 per cent to N1.54 trillion in 2014 as against N1.01 trillion in 2013.

    Meanwhile, foreign investors remained the dominant bloc at the Nigerian stock market. Foreign transactions accounted for 52.52 per cent of total transactions in 2014 while domestic investors accounted for 42.48 per cent. In 2013, foreign investors had accounted for 50.80 per cent while Nigerian investors accounted for 49.20 per cent. Domestic investors traded N1.137 trillion in 2014 as against N1.009 trillion in 2013.

    Market analysts said investors were anxious about Nigeria’s macroeconomic and monetary outlook in the light of the declining global oil prices and rising economic risks. They also cited the increasing political risk. However, analysts were positive on the outlook for the Nigerian market noting that the attractive valuation, resilience of the market fundamentals and the commitment of the government to pull through the global crude oil price challenge.

     

  • SEC goes tough on mutual funds, compliance

    SEC goes tough on mutual funds, compliance

    The Securities and Exchange Commission (SEC) has directed all fund managers in the country to register with the industry’s trade group as the apex capital market regulator moves to enhance compliance with extant rules and regulations.

    In a circular, SEC stated that it is now compulsory for all fund managers to be register with the Fund Managers Association of Nigeria (FMAN), the umbrella trade association established for all registered fund and portfolio managers in Nigeria.

    According to the Commission, the directive is pursuant to the powers conferred on it by Section 13 of the Investments and Securities Act (ISA) 2007 and consistent with Rule 25(1) of its rules and regulations.

    SEC stated that it was partnering with FMAN to develop the funds and portfolio management industry in Nigeria through enlightenment and training and complaints resolution among others with a view to ensuring a sustained growth of the Nigerian investment management industry.

    “Henceforth, the Commission will use membership of FMAN as a requirement to appraise operators in this segment of the Nigerian capital market,” SEC stated.

    In another circular, SEC stated that all operators must comply with extant rules and regulations in all their filings with the Commission.

    SEC said all capital market operators and issuers to ensure that any application filed with the Commission complies fully with the requirements of its rules and regulations.

    “All supporting documents, in the approved format, shall accompany applications at the time of filing as any incomplete filing will be rejected outrightly. Consequently, all market operators and issuers shall ensure that deficiencies or queries raised on their applications are promptly addressed within a reasonable timeframe or as may be stipulated by the Commission,” SEC stated.

     

  • Fayose pledges funds

    The Ekiti State Governor, Mr Ayodele Fayose, has promised funding support to the Ekiti State University (EKSU) towards achieving full accreditation for programmes in its new medical college.

    Fayose made the promise while receiving the accreditation panel of the National Universities Commission (NUC), which visited the college to assess its readiness for accreditation.

    The Governor, who extolled the leadership values of the Vice-Chancellor, Prof. Patrick Aina and the Provost, College of Medicine, Prof. Mathew Araoye, described the medical school as a worthy initiative.

    He said his administration would leave no stone unturned to ensure adequate funding of the college.

  • CBN to evaluate N700b intervention funds

    CBN to evaluate N700b intervention funds

    The Central Bank of Nigeria (CBN) yesterday said it is planning to undertake an impact evaluation of its intervention projects estimated at N700 billion.

    In a statement, the apex bank said the assessment will cover projects done since 2009 under the N200 billion Commercial Agriculture Credit Guarantee Scheme (CACS), N300 billion Power and Airline Intervention Fund (PAIF) and N200 billion Small and Medium Enterprises Restructuring and Refinancing Facility (SMERRF).

    The CBN is therefore, requesting for proposals from interested and competent organisations to conduct the impact evaluation of the scheme.

    Doing that, it said, would ascertain the extent to which it has met its stated objectives. That, it added would also identify the areas of success, impact and challenges; serve as input in evolving a new initiative for the financing of agricultural enterprises on a sustainable basis.

    The CBN had in collaboration with the Federal Ministry of Agriculture and Water Resources,  established the CACS in 2009. The CACS was meant to finance agricultural value chain from input supply to marketing. The scheme commenced operation on April 23, 2009 with the approval of the Federal Government.

    The CACS was meant to fast-track the development of the agricultural value sector of the economy through the provision of credit facilities at a single digit interest rate to large-scale commercial farmers.

    The N300 billion PAIF was meant to facilitate intervention in the transport sector. It was meant provide long term financing that would stimulate private sector participation in the sector.

    The CBN said the Fund provided the banks in the first half of 2013, is a window to finance power sector projects as well as restructure and refinance outstanding facilities in the aviation sector on a long-term basis of between 10 to 15 years at a concessionary interest rate of seven per cent.

  • Lack of funds threatens Dream Team’s training tour

    Lack of funds threatens Dream Team’s training tour

    The proposed training tour of Turkey by the U- 23 national team may not take off at the end of the day as lack of funds’ complaints by the leadership of the Nigeria Football Federation (NFF) may stall the proposal.

    The Dream Team VI kick start their crucial phase of preparations and camping for the All African Games match against Gabon today at the Abuja National Stadium’s FIFA Goal Project Center and it is evident the team will have to make do with preparing at home in Nigeria.

    The disappointed Coach told NationSport that the training tour of Turkey may not materialize after all as a result of paucity of funds facing the NFF.

    “Yes we are commencing the crucial stage of our training for the Gabon match tomorrow (today) at the Abuja National Stadium’s Goal Project pitch and we will do everything within our powers to ensure we get the team ready for the task ahead.

    “I am not really sure of our going for the training tour in Turkey because the Nigeria Football Federation is facing cash crunch for now and they would have liked to sanction our going immediately if not for funds problems.

    “But the door is not finally closed on the issue because we are still looking the way of sponsors for the trip. This is the time the corporate bodies should come to the aid of the Nigeria Football Federation by helping sort out this problem. It will be very good for us to go for the training tour for concentration, tactical and technical reasons too”, Siasia told NationSport in Abuja yesterday.

  • TUC blames misapplication of funds 

    TUC blames misapplication of funds 

    The Trade Union Congress has blamed   misapplication of funds for the pervasive corruption in the country.

    Its President, Comrade Bobboi Kaigama,  lamented that  most projects in the country would have made Nigeria one of the most developed nations of the world were they completed.

    “The fact on ground is that it is really a challenging period for Nigeria as its external debt stock is about $35 billion with the borrowed funds for most capital projects not seen on ground,”  he said.

    Kaigama warned that the economy is collapsing in spite of the rebasing of its gross domestic product (GDP),  which repositioned the country as the 26th biggest economy in the World, and the largest in Africa.

    According to him, the irony of the whole issue is that after the rebased GDP to the present estimate of $509.9billion (N280.2trillion) for 2013, overtaking South Africa’s $372billion for the same period, Nigeria has been described by the World Bank as a very poor country with majority of its populace living below the  poverty line on less than $1.25 (N213) per day.

    He said:“Moreover, the constant epileptic power supply, high unemployment rate, inflation, poor wages to workers, infrastructural decay, low per capital income make us to conclude that the new economic status declared by the government is just an ego boosting exercise and a pure illusion.”

    He called on the Federal Government to implement consistent and realistic monetary and fiscal policies that woul favour the growth of the real sector rather than the current unnecessary borrowing that have negative implications on all sectors of the economy.

    Kaigama  said only an effective mechanism  put in place by the government to curb all unnecessary borrowing  as well as good governance that  will save the nation’s economy from collapse

    He decried the recruitment process  into the civil service, describing it as  irregular and bias.

    Kaigama condemned the appointment of graduates with 12 years ‘ post National Youth Service corps (NYSC) experience as Director in the civil service at the expense of those who have put in over 30 years in service, stressing that the Federal Government should reverse  past cases to restore sanity in the system.

  • World’s top-ranked pension funds probed

    Denmark, home to the world’s top-ranked pension system, will toughen oversight of the $500 billion industry after regulators observed a surge in risk-taking linked in part to more widespread use of hedge funds, Bloomberg has reported.

    The Financial Supervisory Authority in Copenhagen will require pension funds to submit quarterly reports on their alternative investments to track their use of hedge funds, exposure to private equity and infrastructure projects. The decision follows funds’ failures to account adequately for risks in their investment strategies, according to an FSA report.

    The regulatory clampdown comes as Denmark deals with risks it says are inherent to a system due to be introduced across the European Union in 2016. The new rules will allow pension funds to invest according to a so-called prudent person model, rather than setting outright limits. In Denmark, the approach has proven problematic for the only EU country to have adopted the model, said Jan Parner, the FSA’s deputy director general for pensions.

    “The funds are setting up for their release from the quantitative requirements, but the problem is, it’s not clear what a prudent investment is,” Parner said in an interview. “The challenge for European supervisors is to explain to the industry what prudent investments are before the opposite ends up on the balance sheets.”

    Denmark, which has almost two years of experience with the approach after its early adoption in 2012, says a lack of clear guidelines invites misinterpretation as firms try to inflate returns.