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CBN Unveils N300bn Fund For Non-oil Exporters

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Godwin Emefiele on banking

The Central Bank of Nigeria on Tuesday unveiled a N300bn special intervention fund to boost non-oil exports in the country.

The announcement was contained in a communique issued at the end of a non-oil export conference conveyed by the CBN and the Nigerian Export-Import Bank.

The central bank stated in the communique that the intervention fund would be given to exporters at an interest rate of not more than nine per cent.

The communique read in part, “The governor of the CBN committed that the CBN will continue to play a catalyst role in improving exports.

“The CBN will also make N300bn as export stimulation intervention fund available to exporters at not more than nine per cent.”

The CBN Governor, Mr. Godwin Emefiele, had earlier indicated that the country might be heading for tougher times because it recorded a decline of $6.14bn (N1.2tn) in non-oil exports receipts from $10.53bn in 2014 to $4.39bn in 2015.

This is coming against the backdrop of weak oil prices, which have seen a significant drop in crude prices from a peak of $114 barrel in July 2014 to as low as $28 currently.

The country’s reserves have also suffered great pressure from speculative attacks, round-tripping and front-loading activities by actors in the foreign exchange market, making it to decline from $37.3bn in June 2014 to about N28bn currently.

Emefiele blamed the decline on the low level of export loans from the banking sector.

He said available statistics showed that while credit to non-oil exports had been declining in the last five years, credit to the economy had been on the increase.

Emefiele, who put the total credit to the non-oil export sector at 0.6 per cent of domestic credit to the economy, explained that such level of funding could not unlock the potential of the non-oil sector.

He said the conference, with the theme, ‘Growing Nigeria’s non-oil exports’ was put together by the CBN and the Nigerian Export-Import Bank as part of measures aimed at increasing the sector’s contribution to economic growth.

He said, “Exports are an essential component in the national income and it have a very important role in supporting the nation’s economy against the backdrop of weak oil prices.

“It has been observed that while credit to non-oil exports is declining and currently at an average of 0.6 per cent of total domestic loans to the private sector in the last five years, the domestic credit to the economy has been on the rise.

“The low level of export loans has no doubt also contributed to a large extent to the decline in non-oil export revenue receipts from $10.53bn in 2014 to $4.39bn in 2015.”

Punch

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Insider Dealing: Paul Miyonmide Gbededo Adds Another 612,326 Shares of Flour Mills to His Stake

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Paul Miyonmide Gbededo, the Group Managing Director, Flour Mills of Nigeria Plc bought an additional 612,326 shares of the company.

The management stated this in a disclosure statement sent to the Nigerian Stock Exchange on Monday.

The managing director purchased the shares at N27.75 per share on November 20, 2020 at the Nigerian Stock Exchange in Lagos, Nigeria. Meaning, Gbededo has invested another N16,992,046.5 into the company.

This was in addition to the 3,284,867 shares valued at N91,642,269 and 4,200,852 shares worth N117.62 million purchased by Gbededo earlier in the month of November. Bringing his recent purchases to 8,098,045 million shares worth N226,254,315.5. See the details of the latest transaction below.

 

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FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020

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FCMB

FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.

In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.

FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.

The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.

Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.

Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.

The bank’s total assets increased by 22.12 percent to N2.04 trillion.

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Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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stanbic IBTC Insurance

Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).

In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.

“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.

“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”

 

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