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CBN’s Forex Policy Will Boost Manufacturing Sector

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Innoson

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.”

Vanguard

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

Nigerians to Start Receiving Remittance Inflows in Foreign Currency Today

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cbn

The Central Bank of Nigeria on Thursday announced that all arrangements have been perfected by both the International Money Transfer Operators (IMTOs) and the Deposit Money Banks to start paying diaspora remittances in foreign currency (US Dollar).

In a statement issued by the apex bank, Godwin Emefiele, the Governor of the Central Bank of Nigeria said the institution has engaged both the commercial banks and the IMTOs to ensure that Nigerians start receiving remittance inflows in foreign currency today.

The statement reads in part, “Following the announcement of these new policy measures, the Central Bank of Nigeria, in an effort to enable smooth implementation, engaged with the commercial banks and the IMTOs to ensure that recipients of remittance inflows are able to receive their funds in the designated foreign currency of their choice.

“As a result of these engagements which took place with major IMTOs and the DMBs, today, Thursday, December 3, 2020, the stakeholders have committed that they would deploy all the necessary tools to ensure that these measures become effective from Friday, December 4, 2020.”

Emefiele added that “I, therefore, seize this opportunity to announce to Nigerians both at home and in the Diaspora, that the policy of recipients receiving their monies from abroad kicks off on December 4, 2020. All the IT systems of these IMTOs (Western Union, Moneygram and Ria services) and the DMBs have been properly configured to begin remittance tomorrow, Friday, December 4, 2020.”

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Ecobank Profit After Tax Declined by 298 Percent in Q3, 2020

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Ecobank

Ecobank, whose official name is Ecobank Transnational Inc., reported a 298 percent declined in profit after tax for the third quarter ended September 30, 2020.

In the unaudited financial statements released through the Nigerian Stock Exchange, the leading lender’s profit after tax declined from N19.347 billion profit posted in the same quarter of 2019 to -N38.250 billion in the third quarter of 2020. Representing a decline of 298 percent.

Similarly, profit before tax dipped by 182 percent from N36.052 billion filed in the corresponding quarter to -N38.250 billion in the quarter under the review.

However, net interest income rose by 45 percent from N64.563 billion in 2019 to N93.621 billion in 2020. But the 163 percent plunged in other operating income from N77.939 billion in the third quarter of 2019 to -N4.505 billion in the quarter under review weighed on non-interest revenue by 1 percent to N77.229 billion.

Similarly, operating expenses rose by 12 percent to N106.321 billion, up from N94.526 billion. Net monetary loss arising from hyperinflationary economy rose from zero in the third quarter of 2019 to N8.817 billion in Q3 2020 with Goodwill impairment hitting N60.584 billion from zero in the corresponding quarter of 2019.

This, coupled with N8.762 billion tax dragged profit before tax to -N29.635 billion in the third quarter.

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First Bank, GTBank, UBA, Others Generate N133.92 Billion from Electronic Payment in Nine Months

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global banking

Rising investment in financial technologies and the growing adoption of electronic payments have earned 12 Nigerian banks a total sum of N133.92 billion in the first nine months of the year.

Billions spent in ensuring that bank customers have access to their funds and can perform financial transactions 24 hours a day paid off during the COVID-19 lockdown as many customers were able to maintain social distancing by carrying out financial transactions on numerous digital platforms.

Some of the electronic platforms banks generated revenue from in the first nine months were Automated Teller Machine transactions, USSD, online transfer, electronic bills payments, Remita, Point of Sale payments and agency banking, among others.

While some of the twelve banks were Access Bank Plc, First Bank of Nigeria Plc, First City Monument Bank Plc, Fidelity Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc and Sterling Bank Plc.

The other five were Jaiz Bank Plc, Union Bank of Nigeria Plc, Wema Bank Plc, Unity Bank Plc and Stanbic IBTC Plc.

A breakdown of the banks’ unaudited financial statements showed Access Bank’s revenue from electronic payments rose by 105 percent to N38.80 billion in the period under review, up from N18.96 billion posted in the same period of 2019.

First Bank’s electronic payment revenue stood at N34.59 billion, representing an increase of 0.5 percent over the N34.42 billion recorded in the corresponding period of 2019.

Similarly, fees and commissions FCMB earned from digital payments in the first nine months amounted to N6.62 billion, a 17 percent contraction from the N7.98 billion earned in the same period of 2019.

Jaiz Bank posted a 24 percent contraction on its electronic payment earnings from N406.65 million in 2019 to N309.55 million in the same period in 2020.

Also, Stanbic IBTC’s electronic earnings dropped by 15 percent from N2.49 billion posted in 2019 to N2.12 billion in 2020.

Fidelity Bank’s e-payments revenue contracted by 34 percent in the first nine months of the year to N1.74 billion, down from N2.63 billion in 2019. While GTBank posted a 26 percent decline in electronic banking income to N8.21 billion in the period under review, below N11.04 billion earned in the same period of 2019.

Union Bank Plc realised N5.34 billion from electronic payments charges in the first three quarters of the year. Meaning, the bank’s electronic payments decline by 5 percent to N5.6 billion.

For Sterling Bank Plc, electronic products earned the bank N4.31 billion in the very first nine months of 2020, again a reduction of 16 percent from N5.11 billion posted in the same period of 2019.

UBA Plc, Unity Bank and Wema Bank Plc generated N26.71 billion, N1.74 billion and N2.02 billion from electronic payment income, respectively.

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