Finance

CBN’s Forex Policy Will Boost Manufacturing Sector

Published

8 years ago

January 27, 2016

Manufacturers have called on the Federal Government to strengthen the Central Bank of Nigeria, CBN policy on foreign exchange in order to support the growth of the manufacturing sector.

Deputy Managing Director, Tempo Pulp & Packaging Limited, Nassos Sidirofagis, a Greece national who runs a manufacturing firm in Nigeria, told newsmen at a recent press briefing on ‘the CBN policy and impact on the manufacturing sector,’ that the policy has begun to yield impressive dividends as local patronage has increased significantly leading to improved production capacity of up to 70 per cent.

Because of that policy which is encouraging local production, Nigerians are beginning to patronise locally manufactured products thereby creating jobs instead of the foreign products patronage which takes the jobs away from the economy.

It was a game changer because as a Nigerian company, we are also competing globally and locally. But this policy has helped us increase our production capacity by up to 70 per cent. This is significant because it will help us to increase export which will increase the rate of foreign exchange flow.”

He added: “In this global economy that we live now, there is only one medicine. You have to have discipline in spending at the government level, you have to help very much the manufacturing sector and you also have to have policies that contribute to job creation.

If Nigeria can keep this policy for one or two years more and be very strong with this policy, you will see that many investors will be coming to Nigeria to invest. This is because; Nigeria will now be seen as a place that can support manufacturing”

Speaking further, he said: “Being from, Greece, I understand that the problems that we had there were basically problems that many other countries have.

“The solution is to open up the market, focus on manufacturing and local production.”

Greece was like Nigeria, importing almost everything because it had plenty of money but at the end of the day we got bankrupt. And this is just because we didn’t have strong manufacturing, supported by the government and only focused on importation. I can tell you that in Greece now, the government is focused so much on manufacturing and supporting the sector because that is the only way to create jobs.”

On his part, Managing Director, Sren Chemicals Limited, Oluwaseun Taiwo-Tijani, said: “Since the implementation of the policy, the demand rate for our products has increased dramatically.

This is because; most of the companies that now patronise us were not able to import the products again. Before now, most companies still imported nylon bags, which we manufacture locally here, but because of this policy, they had to resort to local manufacturers.

This shows that this policy is capable of making Nigeria export dependent. As manufacturers, we are happy with the policy. Nigeria should manufacture not less than 70 per cent of what it consume.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

Nigerian Ports Authority Secures $700m Loan from Citibank for Lagos Ports Rehabilitation

Published

16 hours ago

April 18, 2024

Samed Olukoya

The Nigerian Ports Authority (NPA) has successfully secured a $700 million loan from Citibank to facilitate the rehabilitation of the Lagos ports.

The finance was facilitated by the UK Export Finance to revitalize the Apapa and Tincan Island Ports, two pivotal gateways for maritime trade in Nigeria.

The announcement was made during a signing ceremony held in Lagos, marking a pivotal moment in Nigeria’s efforts to modernize its port infrastructure.

Mohammed Bello-Koko, the Managing Director of the NPA, expressed optimism regarding the prompt commencement of the reconstruction efforts following the finalization of the funding agreement.

The rehabilitation project is expected to address longstanding challenges faced by the Apapa and Tincan Island Ports, including congestion, inadequate infrastructure, and operational inefficiencies. By modernizing these key maritime hubs, Nigeria aims to bolster its trade capabilities, enhance port efficiency, and stimulate economic growth.

Speaking at the ceremony, Bello-Koko highlighted the strategic significance of the Citibank Facility, citing its favorable terms and affordable interest rates as key advantages for the NPA.

Bello-Koko outlined the NPA’s broader strategy to upgrade port facilities beyond Lagos, with discussions underway to secure additional funding for the enhancement of Eastern Ports such as Calabar, Warri, Onne, and Rivers Ports, as well as the reconstruction of Escravos Breakwater.

The collaboration between the NPA and Citibank underscores the importance of public-private partnerships in driving infrastructural development.

Ireti Samuel-Ogbu, Managing Director of Citibank Nigeria Limited, reaffirmed the bank’s commitment to supporting the NPA and the Federal Government in bridging the infrastructural gap.

Samuel-Ogbu commended the NPA’s strategic initiative and underscored Citibank’s dedication to facilitating the project’s success.

Banking Sector

UBA Announces Final Dividend of N2.30 per Share for FY 2023, Totaling N95.8 Billion

Published

2 days ago

April 17, 2024

Samed Olukoya

UBA (United Bank for Africa) shareholders are set to receive dividends as the bank announces a final dividend of N2.30 per share for the fiscal year 2023.

This translated to a total payout of N95.8 billion, more than the N37.6 billion paid out in 2022.

Despite the robust increase in dividend payments, UBA’s dividend payout to profit after tax (PAT) ratio experienced a decline of 6.3 percentage points, dropping from 22.1% in 2022 to 15.8% in 2023.

Shareholders will receive the dividends based on their shareholdings as of the close of business on Friday, May 10, 2024. The payment is scheduled for May 24, 2024.

UBA urges shareholders who have not completed the e-dividend registration process to obtain the E-Dividend Mandate Form to ensure a smooth disbursement process.

The bank’s unclaimed dividends increased to N14.9 billion in 2023, an 18% increase from the previous year.

The bank reported a profit after tax of N607.7 billion, representing a 257% increase from the N170.3 billion recorded in 2022. This increase in profitability includes a net FX revaluation gain of N26.6 billion.

However, it’s worth noting that the Central Bank of Nigeria (CBN) directive prohibits banks from utilizing FX revaluation gains for dividends payment or operational expenses.

Shareholders are advised to complete the e-dividend registration process or contact the registrar, Africa Prudential Plc, for assistance regarding outstanding dividend warrants or share certificates.

Finance

President Tinubu Launches National Single Window Project

Published

2 days ago

April 17, 2024

Samed Olukoya

President Bola Tinubu inaugurated the National Single Window Project to streamline trade processes and combat bureaucratic bottlenecks.

The initiative promises to unlock significant economic benefits and bolster Nigeria’s position as a global trade leader.

Addressing stakeholders at the Council Chamber of the State House in Abuja, President Tinubu outlined the transformative potential of the Single Window Project.

He explained that Nigeria stands to gain approximately $2.7 billion annually by implementing the initiative, while also saving an estimated $4 billion lost to inefficiencies and corruption plaguing the trade sector.

The National Single Window Project, codenamed a digital trade compliance initiative, will serve as a cross-government website facilitating trade by providing a unified portal for Nigerian and international trade actors.

This centralized platform will offer access to a full range of resources and standardized services from various Nigerian agencies, promising to expedite cargo movement and optimize inter-African trade.

President Tinubu’s directive to dismantle obstacles hindering trade efficiency reflects a commitment to fostering a transparent, secure, and business-friendly environment.

He underscored the urgency of eliminating red tape, bureaucracy, delays, and corruption at Nigerian ports, asserting that the economy cannot afford to sustain such losses.

The President’s call to emulate success stories from countries like Singapore, Korea, Kenya, and Saudi Arabia highlights the transformative potential of the Single Window system.

By joining the ranks of nations that have significantly improved trade efficiency through similar initiatives, Nigeria aims to unlock new avenues for economic growth and prosperity.

Tinubu stated that the National Single Window Project transcends Nigeria’s borders, presenting opportunities for regional integration and inter-African trade optimization. By linking Nigeria’s system with those of other African nations, the initiative seeks to expedite cargo movement and enhance trade facilitation across the continent.

Managing Director of the Nigerian Ports Authority, Bello Koko, provided insights into the practical implications of the Single Window initiative.

He affirmed that imports would be cleared at all seaports within 24 hours, a significant improvement compared to neighboring countries where clearance often takes up to 72 hours.

Koko outlined how the initiative would streamline paperwork, enhance information sharing among government agencies, and foster greater efficiency in trade transactions.

With representatives from key government agencies and bodies forming the project secretariat, the National Single Window Project reflects a collaborative effort to drive comprehensive reform in Nigeria’s trade sector.