The Nation Newspaper

Tag: investors

  • Investors shift to penny stocks as equities open negative

    Low-priced stocks, otherwise known as penny stocks, dominated the top chart at the Nigerian Stock Exchange (NSE) as the equities market reopened yesterday to a streak of profit-taking. Low-priced stocks in the banking, insurance and conglomerate sectors topped activities’ chart as investors appeared to be shifting to low-priced value stocks with prospects of good dividend yields.

    With profit-taking transactions on many large-cap stocks, the overall market position closed negative with average day-on-day return of -0.85 per cent, equivalent to net capital loss of N135 billion. Average year-to-date return consequently moderated to 15.74 per cent.

    Aggregate market value of all quoted equities at the NSE dropped from its opening value of N16.019 trillion to close at N15.884 trillion. The All Share Index (ASI)-the benchmark index for the stock market, declined from its opening index of 44,639.99 points to close at 44,261.72 points.

    With 34 losers to 22 gainers, most sectoral indices also closed negative. The NSE Industrial Goods Index declined by 1.3 per cent. The NSE Oil & Gas Index dropped by 1.3 per cent while the NSE Consumer Goods Index depreciated by 0.7 per cent. On the upside, the NSE Insurance Index appreciated by 1.6 per cent while the NSE Banking Index rose by 1.4 per cent.

    Total turnover stood at 426.8 million shares valued at N2.8 billion, with low-priced stocks making up about 80 per cent of the top activities’ chart. FCMB Group was the most active stock with a turnover of 101.5 million shares valued at N303.32 million. Skye Bank followed with a turnover of 48.34 million shares worth N66.37 million while Diamond Bank ranked third with a turnover of 31.54 million shares valued at N100.21 million.

    “Despite the negative performance today, our near-term outlook on performance remains positive as investors continue to seek for bargain opportunities in anticipation of full year earnings releases,” Afrinvest Securities stated.

    Dangote Cement-the most capitalised quoted company, led the losers with a loss of N8 to close at N270. Forte Oil followed with a drop of N2.40 to close at N46.05. Julius Berger Nigeria dropped by N1.35 to close at N28.65. Lafarge Africa lost N1 to close at N53 while Cadbury Nigeria and Nascon Allied Industries dropped by 50 kobo each to close at N15.50 and N21 respectively.

    On the positive side, Bet Glass led the gainers with a gain of N3.10 to close at N65.45. Zenith Bank followed with a gain of 70 kobo to close at N32.65. PZ Cussons Nigeria added 55 kobo to close at N23.65. Nigerian Breweries rose by 50 kobo to close at N145 while Dangote Sugar Refinery chalked up 35 kobo to close at N21 per share.

    “Our theme for equities remains positive, amidst strengthening macroeconomic fundamentals; more so, as investors take position ahead of fourth quarter 2017 corporate releases,” Cordros Capital stated in a post-trading note to investors.

     

  • Nospetco investors get Feb date at Supreme Court

    Counsel to Nospetco (Oil and Gas) Investors Forum in the multi-billion naira suit against the Security and Investment Commission/Federal Government said he now has a February 12 hearing date at the Supreme Court.

    The lawyer, Debo Adeleke made this declaration during the forum’s monthly meeting held last week at his Ogudu Chambers in Lagos.

    He assured hundreds of expectant investors present that the total money, N22.4 billion is with the Central Bank of Nigeria and the apex bank has assured that it is safe and will be released once the court gives the directive.

  • Investors stake N1.27tr on equities in 2017

    Turnover at the Nigerian equities market rose by 121 per cent to N1.27 trillion as quoted equities rebounded from a three-year consecutive downtrend with average return of 42.3 per cent.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, gave the overview of the market in 2017 and outlook for 2018 at his annual briefing yesterday in Lagos. Onyema used the occasion to brief the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for 2018.

    He noted that equity market activity skyrocketed from 2016 levels, as market turnover increased by 121 per cent to N1.27 trillion from N0.58 trillion.

    According to him, the Nigerian equities market recovered from the macroeconomic overhang of the commodity downcycle to become the third best performing market in 2017 globally, with a 42 percent return in the NSE ASI index. However, The Nation’s check indicated that Nigeria was not the third best performing market, as other countries such as Venezuela, Ghana, Turkey, Argentina and Jamaica outperformed the Nigerian market.

    He attributed the impressive performance, in part, to Central Bank of Nigeria (CBN)’s monetary policies that resulted in increased liquidity in the foreign exchange market.

    “IPO activity in the year remained mute, however, there were several other positive indicators including the revival of supplementary listings and the return of new issuances. The value of supplementary listings increased by 27 per cent, bringing the total value of equity issues in 2017 to N408 billion,” Onyema said.

    In the debt market, Onyema noted that the NSE fixed income market recorded mixed performance as new bond issuances increased over the previous year, while bond yields gradually moderated from 2016 levels amidst easing inflation and greater foreign exchange stability.

    He pointed out that yields across various tenors declined between 0.4 per cent and 1.5 per cent, and market turnover declined by 24 per cent in 2017, as investors sought higher returns in alternative product classes. However, supplementary issuances by the Federal Government saw bond market capitalization increase by 34 per cent year-on-year.

    “The NSE’s Exchange Traded Funds (ETF) market witnessed increased activity across key metrics in 2017, recording a 272 per cent year-on-year growth in trade volumes, 33 per cent growth in turnover and a 40 per cent year-on-year increase in market capitalization to close the year at N6.69 billion,” Onyema said.

    He added that the NSE made steady progress on its strategic focus areas set out at the beginning of 2017 pointing out that demutualization remained a key strategic focus in the year under review as the Exchange, through targeted engagement efforts with its members, Securities and Exchange Commission (SEC), the National Assembly (NASS), NSE members including Association of Stockbroking Houses of Nigeria (ASHON), Corporate Affairs Commission (CAC) and other key stakeholders, achieved the broad-based support required to secure approval for demutualization from the Exchange’s members.

    He said the Exchange successfully progressed the Demutualization Bill through the first and second reading and public hearing stages of the law making process.

    “In 2017, we amplified our efforts to establish West Africa’s first derivatives market and achieved a number of key milestones during the year. These include the completion of draft rules; development of product specifications; and market-wide trainings on derivatives and Clearing Counterparty (CCP) transactions. We also worked to create and enhance legal and regulatory frameworks which support derivative instruments, and have made significant progress towards securing approvals to operationalize these frameworks,” Onyema said.

  • Ganduje to review laws to attract investors

    Ganduje to review laws to attract investors

    Kano State Governor Dr. Abdullahi Umar Ganduje has vowed to create an enabling environment for investors by reviewing relevant laws.

    The state Attorney-General and Commissioner for Justice, Mr. Ibrahim Mukhtar, said the governor has made land acquisition easier for investors.

    He said the governor has created an agency of that deals with and encourage investors.

    According to him, the governor is also improving access to justice through capacity building and appointment of more judges.

    He said: “The governor has made laws to give the investors free land in the state so that they don’t have to pay for all the charges before they have land to build their factories and offices. He gives them tax waivers and all the rest.

    “But you know very well that investors will not come down and invest in any place  if there is no assurance of the rule of law in that particular society. This is because they can invest their money today and somebody from nowhere will just come out tomorrow and take away their investments without recourse to the rule of law. ‘’

    The governor, he said, was constructing over 23 lower courts and had appointed three more High Court judges. He had appointed 24 Sharia Court of Appeal judges.

    Mukhtar said he had received approval from the governor to train more state counsel.

    ‘’We have secured approval to employ 25 more state counsel who we have interviewed and that will give us about 130 lawyers in the state Ministry of Justice. We are also trying to do more in the area of training, recruitment and a lot more.

    “With that number, we are going to start taking over the prosecution of criminal cases from the Police at the lower courts. Already, state counsel are the ones prosecuting before High Courts and other courts of record but at the Magistrates Court, Police prosecutors are the ones prosecuting but we now ready to take over the prosecution of cases by the State Counsel.

    “We made a case for additional offices and the governor has just directed the commissioner for works and housing to build additional block of flats for us in the ministry of justice,’’ he said.

    The commissioner continued: “What we have as a structure is just a two-storey building and with the additional recruitment which we are making, we need additional office structures. He has approved it, they have conducted soil test and are now taking measurements for the building.

    “The government is building additional block for us and the government is also modernising our library to give us a computerised library in the  ministry of Justice. Apart from this, all law practice books both hard copy and virtual books will be there.’’

    ‘’If you look at my age at the Bar, you will know that for a governor to appoint somebody of my age at the Bar as his Attorney-General and Commissioner for Justice, which is not the practice in Nigeria,  it  is an indication that he wants to transform the society for better.

  • Nigeria start-ups hot for investors

    Nigeria start-ups hot for investors

    In 2017, it was a harvest of international funds for Nigerian start-ups from donors, business angels and venture capitalists, DANIEL ESSIET reports.

    The year 2017 was eventful for the Nigerian small business sector. The sector emerged as one of the hottest for investors.  Leading venture capital firms evaluated several start-ups.  Many  secured seed funding in Africa and attracted increased international support. The space saw significant investment of over $ 200 million spread across small businesses and projects. The general trend was that the seed/angel rounds got bigger.

    During the year, many startups get more than $ 50,000 investment.

    Three Nigerian tech start-ups received $8.35m in seed capital from local and foreign investors: Wi-Fi provider Tzeti ($2.1m), e-commerce start-up Cars45 $5m and Fintech firm Lydia ($1.25m).

    Fntech startup Lydia is a financial services platform, which grants individuals and African businesses access to small loans, using credit scoring algorithms.

    Another start up, online travel agency, Travel beta raised $2 million seed funding from a group of Nigerian Investors barely six weeks after the company was launched on October 1.

    Three Nigerian start-ups secured $450,000 funding from 500 Startups. The tech start-ups, which include Mail Haven, Mobile Forms and Fyodor Biotechnologies,  were part of the 36 companies drawn from across the world.

    Last year, Coding School Andela in October secured $40million funding from investors  such as  CRE VC, Salesforce Ventures, DBL Partners, etc, to fund an aggressive expansion across Africa, taking its total venture funding to over $80 million. Andela, builds high-performing engineering teams with Africa’s most talented software developers.

    A payments startup, Flutter wave, also secured funding of $10 million.

    Digital and crowd-funded agriculture platform, FarmCrowdy announced raising $1m seed fund, barely a year after it launched, from Techstars and other international investors.

    FarmCrowdy was the first and only African startup to be shortlisted into Techstars Atlanta’s accelerator programme in August. The seed fund will allow the award-winning startup to scale its operations with plans to expand to combined 20 states, work with 4,000 additional small-scale farmers and engage a combined 20,000 new farm followers and farm sponsors on its platform to learn about the opportunities in agriculture and partner farmers.

    Former Minister of Communication Technology, Dr Omobola Johnson announced TLcom Capital’s $40m seed fund for African tech startups. Mrs   Johnson is the Lead General Partner for TLcom in Lagos.

    Founded in 1999, TLcom Capital has invested in targeted businesses, which address technological issues in either large established global markets, or in the development of emerging markets with the potential for a global scale.

    During the year, former country Manager of Starta, Yele Bademosi established Microtraction to invest early in the most remarkable technical founders as well as provide support to build world-class startups.

    Microtraction commited $65,000 at two different stages to recipient startups, an initial tranche of $15,000 for 7.5 per cent equity stake, followed by an extra $50,000 (convertible note) at a $1 million valuation cap for companies that showed significant progress.

    Also, a venture capital firm, LoftyInc Capital Management announced the close of its Afropreneur Fund 1 and the launch of a new $25 million Afropreneur Fund II. LoftyInc Capital said the new fund will focus on early-stage enterprises that leverage technologies to create social impact and tackle big problems. The launch of the new fund was announced at Africa Diaspora Network’s Annual Investment Symposium in Silicon Valley.

    “The key goal of the Afropreneur Funds is to leverage these investments for social impact, contributing as much to social change and impact as to the bottom-line, lifting millions out of poverty, illiteracy, sickness and unemployment,” the firm said. LoftyInc Capital Management (LCM) is an initiative of Idris Bello and partners.

    During the year also, Meltwater Entrepreneurial School of Technology (MEST) brought valuable experience and network apart from the financial support to the start-up community. MEST, a not-for-profit organisation that invests in and trains African Entrepreneurs, with the aim to create next tech entrepreneurs and provide jobs for the continent, provides funding, space and expertise.

    It also powers a cluster of innovation networks for startups in Lagos. Headquartered in Accra, Ghana, MEST has invested $20 million since opening its doors in 2008 to aspiring African entrepreneurs and has gone to recruit talents from not only Ghana, but Nigeria, Kenya, South Africa and Cote D’ivoire.

     

    $1 million venture

    capital fund

     

    The Federal Government  through the Information and Culture Minister, Lai Mohammed, established a  $1 million venture capital to boost the creative Industry.

    He announced this in Lagos at the opening of a two-day Creative Industry Financing Conference, saying 20 individuals, each investing $50,000, are expected to help make up the required amount. So far, he said, five people had volunteered to invest $50,000 each and expressed the optimism that more investors would come forward.

    The Venture Capital, according to him, would provide seed money for young and talented Nigerians to set up businesses in the creative industry. He said Nigeria’s creative industry needs to be taken into a golden era of smooth access to short and long term financing.

    Lagos State Employment Trust Fund (LSETF)

    New set of 1, 438 beneficiaries of the Lagos State Employment Trust Fund (LSETF) received cheques totaling N924.7 million from Governor Akinwunmi Ambode.

    The governor, who presented the cheques to the beneficiaries at the blue roof Lagos Television (LTV) Agidingbi, said the initiative was geared towards providing funds for entrepreneurs, artisans and traders among others, to help boost their business and tackle unemployment challenges in the state.

    The governor in January had presented cheques totaling about N1 billion to 705 beneficiaries, who were selected after scaling through a transparent screening process in the pilot phase.

     

    Growing interest

    in Nigeria

     

    To experts, the Nigerian startup ecosystem has definitely taken off. It has been driven by increased international funding,   evolving technology space and a burgeoning demand within the domestic market.

    Lagos State Commissioner for Wealth Creation and Employment, Babatunde Durosinmi-Etti said the state is building an ecosystem with significant improvements in ease of doing business, liberalisation in taxation policies and simplification of regulatory procedures.

    He reiterated that Lagos’s economic future lay in encouraging startups, which will bring dynamism, new thinking and create jobs for the economy.

    Growing interest in Nigeria globally has led to foreign companies and funds such as Alibaba (China), showing interest in   new generation entrepreneurs. The  Global Startup Ecosystem Report and Ranking 2017, produced by Startup Genome in collaboration with the Global Entrepreneurship Network (GEN), noted  that at $2 billion, the Lagos startup ecosystem is the most valuable in Africa continent, but only second after Cape Town in terms of the number of startups.

    The study said Lagos ecosystem has the ninth highest rate of founders with an undergraduate degree at 59 per cent, while 93 per cent of them have a technical background, the third highest rate in the world.

    However, Lagos startups have one of the lowest rates of foreign customers, suggesting challenges to going global. Only 11 per cent of startups plan to go global.

    “While Nigeria is busy adding six million new internet users every year, the feverish entrepreneurial energy of Lagos and its estimated 400-700 active startups stayed consistent by providing them with useful new technologies,” the report said.

     

  • ‘Investors, exporters forex window records $1b weekly turnover’

    The Investors’ & Exporters’ (I&E) Forex Window launched by the Central Bank of Nigeria (CBN) in April last year now attracts weekly transaction volume worth $1 billion, a report released yesterday by FBN Capital, said.

    The I&E Forex window, seen as willing buyer, willing-seller window allows foreign investors to bring in dollars into the economy at any price of their choice, provided they could find buyers at such rate. The forex window has added over $12 to the economy since inception.

    The report by FBN Capital, a subsidiary of FBN Holdings, showed that Purchasing Managers’ Index (PMI) rose strongly in December to 68.7 from 60.1 the previous month. A headline reading of 50 signifies neutral.

    For Nigeria, all five sub-indices rose in December, the highest was 73 (stocks of purchases), which has been above 50 since March. The principal driver, it said, was the CBN’s use of multiple foreign exchange (forex) windows, which has transformed liquidity. Manufacturers, or indeed any users of forex, now have reliable access to forex provided that they are comfortable with the price.

    It said the positive impact on forex access gained momentum since July. “Weekly turnover on the Investors’ and Exporters’ Forex window has risen to about $1 billion. A more recent boost in both October and December has been the seasonal rise in demand for the year-end celebrations. The readings in December have been particularly strong although we should caution that a similar surge the previous year was followed by a sharp fall in January 2017,” the report said.

    It said manufacturing expanded by 2.6 per cent quarter-on-quarter in September 2017. We can see the momentum of the improved forex availability in the growth of the two largest sub-sectors: food, beverages and tobacco (0.6 per cent), and textiles, apparel and footwear (7.5 per cent).

    The PMI was found in developed markets like in the United States, larger emerging markets such as China, India and Brazil, and a few other frontiers and is based on manufacturers’ responses to set questions on core variables in their businesses.

    It described PMI as forward-looking indicators of sentiment in all economies, which have the proven capacity to move financial markets in developed economies. To reinforce the point, the latest national accounts cover the third quarter (July-September) and the latest PMI the third month of the fourth. It said respondents were asked whether output, employment, new orders, suppliers’ delivery times and stocks of purchases have improved on the previous month, are unchanged or have declined.

    “A headline reading of 50 is neutral. We have posted nine negative readings since our launch in April 2013, the latest in January 2017. Our sample is an accurate blend of large, medium-sized and small companies. We have added “trigger” questions, which apply when the respondent has the same answer on a sub-index for two months and then changes it for the third,” the report said.

  • Investors stake N140b on equities amid Santa rally

    Investors stake N140b on equities amid Santa rally

    Investors staked about N140 billion and most price changes were positive as equities recovered from a profit-taking trend to post a modest gain at the weekend.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated a modest average return of 0.22 per cent for the week, equivalent to net capital gain of N31 billion.

    While the market opened with a two-day downtrend due to profit-taking, increased bargain-hunting spurred a three-day modest rally. Average year-to-date return improved to 43.34 per cent at the weekend.

    Aggregate market value of all quoted equities at the NSE rose from the week’s opening value of N13.678 trillion to close at N13.709 trillion. The All Share Index (ASI)-the benchmark price index, also increased from its week’s index-on-board of 38,436.08 points to close weekend at 38,522.14 points.

    A total turnover of 2.24 billion shares worth N139.79 billion were traded in 18,466 deals last week as against a total of 1.85 billion shares valued at N51.523 billion traded in 23,863 deals two weeks ago. The financial sector led the activity chart with 984.58 million shares valued at N10.59 billion in 11,116 deals, representing 43.9 per cent and 7.57 per cent of the total equity turnover volume and value.

    The industrial goods sector followed with 564.804 million shares worth N125.378 billion in 927 deals. The third place was occupied by conglomerates sector with a turnover of 804.447 million shares worth N561.921 million in 689 deals.

    The three most active stocks were Transnational Corporation of Nigeria Plc, Dangote Cement Plc and Aiico Insurance Plc, which accounted for 1.335 billion shares worth N125.907 billion in 888 deals, contributing 59.52 per cent and 90.07 per cent to the total equity turnover volume and value.

    Also traded during the week were a total of 3,070 units of Exchange Traded Products (ETPs) valued at N455,245 in eight deals, compared with a total of 1,120 units valued at N14,179 traded in four deals two weeks ago.

    In the debt segment, a total of 3,780 units of Federal Government bonds valued at N3.931 million were traded in 17 deals compared with a total of 5,382 units valued at N5.680 million traded in 17 deals in the previous week.

    There were 35 gainers against 25 losers last week compared with 16 gainers and 46 losers recorded in the previous week. Most sectoral indices closed positive, underlining the widespread positive sentiment during the week.

    The NSE Most sectoral indices closed positive, underlining the widespread positive sentiment during the week.

    The NSE 30 Index-which tracks the 30 most capitalised stocks, appreciated by 0.29 per cent. The NSE Oil and Gas Index led the rally with 4.43 per cent. The NSE Insurance Index rose by 1.14 per cent. The NSE Industrial Goods Index rose by 0.38 per cent while the NSE Banking Index posted a return of 0.91 per cent. However, the NSE Consumer Goods Index declined by 1.37 per cent.

    Linkage Assurance recorded the highest gain, in percentage terms, of 19 per cent to close at N69 kobo. Livestock Feeds rose by 11.3 per cent to close at N89 kobo while Seplat Petroleum Development Company appreciated by 10.4 per cent to close at N596.40.

    On the downside, Dangote Sugar Refinery led the losers with a drop of 9.5 per cent to close at N19.64. May & Baker Nigeria followed with a drop of 8.3 per cent to close at N2.64 while Flour Mills of Nigeria declined by 8.0 per cent to close at N28.36 per share.

    Analysts at Afrinvest Securities stated that they expected a largely positive performance at the stock market this week on the back of year-end portfolio rebalancing by fund managers.

  • DMO begins investors’ campaign for N10.96b Green Bond

    DMO begins investors’ campaign for N10.96b Green Bond

    The Debt Management Office (DMO) has started  a sensitisation roadshow in Abuja for the N10.96 billion Sovereign Green Bond issuance.

    The Green Bond, which will be issued on Monday,   followed  Nigeria’s endorsement of the Paris Agreement on Climate Change on September 21, 2016.

    The Paris Agreement aims to strengthen the global response to the threat of Climate Change, since the signing of the Agreement various countries who are parties to the Agreement have initiated several steps aimed at making the environment better.

    Speaking yesterday in Abuja, DMO Director-General, Patience Oniha, said the roadshow will continue in Lagos today and would sensitise prospective investors in the Green Bond.

    She explained that the essence of the roadshow is to ensure that the people or organisations who will invest in the Green Bond have some understanding of what the project is about.

    Oniha noted that the government will use the Green Bond proceeds to finance projects in the 2017 Appropriation Act that have been certified as Green because of their positive effects on the environment.

    She said proceeds from the green bonds will be used to finance the Renewable Energy Micro Utilities and Afforestation Programmes.

    Also speaking, Hajiya Halima Abubakar, a representative of the Department of Climate Change, Federal Ministry of Finance, explained that Nigeria is prone to coastal environmental hazards which were part of reasons President Muhammadu Buhari signed the Paris Agreement for a global response to environmental challenges facing the nation.

  • Nigerian economy attractive to investors, says IMF

    Nigerian economy attractive to investors, says IMF

    The International Monetary Fund (IMF) said yesterday that Nigeria was still on international investors’ radar despite currency controls being implemented in the country. It however, said worries about repatriating funds out of Nigeria following currency controls last year still dominates investor fears.

    Miriam Tamene, an IMF senior financial sector expert, said there is interest in Nigeria’s securities market. However, investors were being careful because fears of getting trapped still exist.

    Nigeria introduced capital controls following dollar shortages triggered by a currency crisis last year. The naira hit a record of 520 to the dollar, prompting the Central Bank of Nigeria (CBN) to restrict fund flows.

    In April the bank liberalised the market to allow investors trade the naira at market-determined rates in a bid to attract inflows into debt and stock markets.

    The stock market has gained 45 per cent so far this year, helped by demand for consumer goods and banking shares after the central bank lifted currency restrictions for investors.

    Tamene’s comments came after her team visited Nigeria’s Securities and Exchange Commission (SEC) as part of consultations on developments covering the economy. The report of the consultation will presented to IMF board in February.

    “Investors are interested in Nigeria, but with difficulties they had in getting their money out recently, that confidence is not there yet,” Tamene said in a statement released by the SEC.

    Nigeria’s currency market for investors has traded $22.37 billion since it was launched, according to market operator FMDQ OTC Securities Exchange.

    On Wednesday traders said some foreign investors were booking profits from treasury bills and bidding to repatriate funds abroad, creating a liquidity squeeze on the currency market, after debt yields fell.

  • Edo farmers, investors to get N500m credit

    Edo farmers, investors to get N500m credit

    Edo State government has partnered Central Bank of Nigeria (CBN) to set up a N500 million Commercial Agricultural Credit Scheme (CACS), to provide guarantee for agribusiness investments, Governor Godwin Obaseki has said.

    He spoke at the Government House, Benin City, at the inauguration of a committee to oversee the scheme.

    It is intended to de-risk investments in agriculture.

    The governor said the programme, which was set up by the Federal Government through the CBN, was to provide credit for agricultural transactions, stressing that it was critical to his administration’s agricultural initiatives.

    He said the government was not interested in agribusiness to start farms, but only interested in de-risking the process and creating an enabling environment for entrepreneurs to emerge and thrive.

    Members of the nine-man committee headed by the Special Adviser to the Governor on Agriculture, Prince Joe Okojie, according to Obaseki, were selected based on their expertise and accomplishments.

    He noted that it was not another avenue for political patronage.

    The governor said the committee members would serve as a monitoring team and manage funds from the CBN to guarantee its judicious use by farmers across the three senatorial districts.

    He said the idea was to support large scale commercial agriculture so that their growth would stimulate and scale up activities of small scale farmers.

    “Time, experience and technology are important in agriculture. We need to engage the services of consultants and experts to work with the committee and use the advantage of the dry season to our benefit,” Obaseki said.

    He said over N500 million was available from expected funds and outlined their terms of reference to include: oversee and ensure equitable distribution of fund; promote an efficient and inclusive participation of key stakeholders; ensure proper monitoring and evaluation; guarantee integrity of each access to information; ensure fund usage by beneficiaries are in line with the terms of the scheme; monitor the impact and constantly look for ways to improve the probability of reaching the expected result of the scheme.

    The committee Chairman, Prince Joe Okojie, pledged to deliver on their terms of reference and promised to be fair and objective in the management of the credit facility.