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NIRSAL Guarantees N61.16bn Loans to Agriculture

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Agriculture

Managing Director, Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL), Mr. Aliyu Hameed has said that the firm has guaranteed loans totaling N61.16billion to agriculture and disbursed N753.35million as rebate to borrowers who paid back loans on time between 2013 and 2015.

This was the period when the agency was still a project implementation office under incubation within the Development Finance Department of the Central Bank of Nigeria (CBN).

He added that NIRSAL had also guaranteed up to 207 agricultural value chain projects valued at N39.49billion under the Growth Enhancement Scheme (GES) programme of the Federal Ministry of Agriculture & Rural Development (FMARD) and paid $2.2million (N439.09million) as interest draw back to beneficiaries on 91 agriculture related projects.

Hameed said NIRSAL had between 2013 and mid-2016 trained 157,000 farmers/primary producers in 6 value chains including rice, cocoa, cotton, tomatoes, sesame, and soybeans.

Speaking during a presentation at the Design Workshop on Establishing an African Agriculture Risk Sharing and Financing Mechanism which was organised by the African Development Bank (AfDB) in Nairobi, Kenya, the NIRSAL boss argued that the growth of agriculture in Nigeria will lead not only to prosperity but also improve income equality in the country.

He, maintained that the positive impact of agriculture on income inequality was one of the several reasons for the focus of the Buhari administration on the sector which is believed to have the potential to boost the economy and improve the lives of Nigerians.

Hammed further described the progress made so far by NIRSAL as a product of the farsighted pro-people vision of the Buhari administration and the continued commitment of the CBN under Mr. Godwin Emefiele to achieving the vision.

His comments also came as the AfDB identified the NIRSAL financial model as of the current successes of African agriculture during its post event assessment of the workshop.

Describing NIRSAL as a “Game Changer” in Nigeria’s agricultural space, the MD added that it planned to further facilitate lending to 3.8 million agricultural producers out of the estimated 14 million agricultural producers in the country within the next 10 years by providing guarantees through intermediaries including Microfinance institutions and cooperatives.

In a statement by NIRSAL’s Coordinator Research & Strategy, Bello Abdullahi Abba! Hameed said part of the key objective of NIRSAL was to increase total value of agricultural lending- from the current 1.4 percent to 10 percent of total bank lending by 2026 and generating by $3 billion of additional agricultural lending in order to boost food production levels, stimulate inclusive growth, create jobs and increase the standard of living of farmers who constitute the greater majority of our population.

Essentially, NIRSAL was set up in 2013 as an initiative of the CBN, the Bankers’ Committee and the FMARD as a primary platform for managing agribusiness risk so banks can lend with confidence to the sector which had largely been neglected.

NIRSAL use credit guarantees to address the risk of default and provide technical assistance and incentives to both financial institutions and borrowers to bridge understanding and increase capacity to payback.

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.

Investment

The Time is Now for Global ESG Regulation: deVere CEO

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Nigel Green - Investors King

A global regulatory framework for environmental, social and governance (ESG) investing is now urgently required, affirms the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The ‘call to action’ from Nigel Green, the chief executive and founder of deVere Group, comes as major financial institutions are handling a massive uptick of inflows into the sector but at the same time facing accusations of inconsistency in their approach to sustainable impactful investments.

Mr Green says: “Environmental, social and governance investing is this decade’s ultimate investment megatrend – and it has been accelerated since the pandemic began.

“There’s been a dramatic increase of inflows into the sector from both retail and institutional investors as it has become clearer than ever that human health is reliant upon healthy ecosystems; that we need to ensure the sustainability of supply chains; and that those companies with robust corporate governance and good business practice fare better in difficult times and are ultimately best-positioned for the future.”

He continues: “The trend is unlikely to slow down in a post-pandemic world. Millennials, who are statistically more likely to seek responsible investment options, are set to become the major beneficiaries of the largest inter-generational transfer of wealth – an estimated $30trillion over the next few years.

“In addition, recent research reveals that the majority of environmental, social and governance investments have outperformed their non-sustainable counterparts over the last year and have had lower volatility.

“This will only serve to attract more investors.”

Given the continuing and increasing demand, Mr Green says that the regulatory landscape must reflect the situation.

“Regulators need to catch-up.  Initiatives that began in the EU are now spreading worldwide, but much more needs to be done, at a faster pace and with a joined-up approach. There remains a startling lack of consistency in definitions and data.

“Considering the momentum of the sector, the time is now for the establishment of a global regulatory framework for ESG investing.”

This, he says, will provide greater protections for those investors who are looking for profits with purpose. It will also help to reduce ‘greenwashing’, which is where an investment or company gives an inaccurate impression over its green, socially responsible or corporate credentials.

The deVere CEO concludes: “A robust standardised regulatory framework would make the sector even more attractive, which will then help investors reach their financial goals whilst proactively protecting people and the planet.”

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BMW and Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles

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 Solid Power, an industry-leading producer of all solid-state batteries for electric vehicles, yesterday announced a $130 million Series B investment round led by the BMW Group, Ford Motor Company and Volta Energy Technologies.

Ford and the BMW Group have also expanded existing joint development agreements with Solid Power to secure all solid-state batteries for future electric vehicles.

The investment positions Solid Power to produce full-scale automotive batteries, increase associated material output and expand in-house production capabilities for future vehicle integration. The BMW Group and Ford aim to utilize Solid Power’s low-cost, high-energy all solid-state battery technology in forthcoming electric vehicles.

“BMW and Ford now share leading positions in the race for all solid-state battery-powered electric vehicles,” said Doug Campbell, CEO and co-founder of Solid Power. “Solid Power now plans to begin producing automotive-scale batteries on the company’s pilot production line in early 2022 as a result of our partners’ continued commitment to Solid Power’s commercialization efforts.”

Solid Power has demonstrated its ability to produce and scale next-generation all solid-state batteries that are designed to power longer range, lower cost and safer electric vehicles using existing lithium-ion battery manufacturing infrastructure.

Solid Power’s leadership in all solid-state battery development and manufacturing has been confirmed with the delivery of hundreds of production line-produced battery cells that were validated by Ford and the BMW Group late last year, formalizing Solid Power’s commercialization plans with its two long-standing automotive partners.

“Solid-state battery technology is important to the future of electric vehicles, and that’s why we’re investing directly,” said Ted Miller, Ford’s manager of Electrification Subsystems and Power Supply Research. “By simplifying the design of solid-state versus lithium-ion batteries, we’ll be able to increase vehicle range, improve interior space and cargo volume, deliver lower costs and better value for customers and more efficiently integrate this kind of solid-state battery cell technology into existing lithium-ion cell production processes.”

“Being a leader in advanced battery technology is of the utmost importance for BMW. The development of all solid-state batteries is one of the most promising and important steps towards more efficient, sustainable, and safer electric vehicles. We now have taken our next step on this path with Solid Power,” said Frank Weber, Member of the Board of Management BMW AG, Development. “Together we have developed a 20 Ah all solid-state cell that is absolutely outstanding in this field. Over the past 10 years, BMW has continuously increased the battery cell competence– important partners like Solid Power share our vision of zero-emission mobility.”

Solid Power is currently producing 20-ampere hour (Ah) multi-layer all solid-state batteries on the company’s continuous roll-to-roll production line, which exclusively utilizes industry standard lithium-ion production processes and equipment.

Both Ford and the BMW Group will receive full-scale 100 Ah cells for automotive qualification testing and vehicle integration beginning in 2022. Solid Power’s all solid-state platform technology allows for the production of unique cell designs expected to meet performance requirements for each automotive partner. Solid Power’s truly all-solid cell designs achieve higher energy densities, are safer and are expected to cost less than today’s best-performing lithium-ion battery cells.

“Volta invested early in Solid Power when our team of energy and commercialization experts found they had not only promising technology, but also a fundamental focus on manufacturability. After all, a breakthrough battery will not find a place in the market if it can’t be produced at scale with acceptable costs,” said Dr. Jeff Chamberlain, CEO of Volta Energy Technologies, a venture capital firm spun out of the U.S. Department of Energy’s Argonne National Laboratory focused on investing in breakthrough energy storage and battery innovations.

“The fact that Solid Power is already producing multi-layer all solid-state batteries using industry-standard automated commercial manufacturing equipment is why Volta is excited to ramp up its earlier investment. The company’s partnership with BMW and Ford will further accelerate the full commercialization of Solid Power’s batteries and position both car companies to be among the first to have EVs on the road powered by safer, affordable, high-energy solid-state batteries.” He added.

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Custodian Investment To Raise $15M Additional Capital

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custodian and UACN Deal

Shareholders of Custodian Investment Plc yesterday gave their approval to the board of directors of the company to raise the naira equivalent of up to $15 million as additional capital through a convertible loan instrument.

The shareholders, who gave the approval at the 26th Annual General Meeting (AGM) of the group held in Lagos, also authorised the directors to convert the loan into shares in the company at a conversion price higher than N6.00 per share or the 12-month historical daily share price of the company derived from the Daily Official List of the Nigeria Exchange Limited (NGX)for the period ended March 23, 2021.

They hailed the board and management for reporting improved financial performance and returns on investment despite the adverse effect of the Covid-19 pandemic which disrupted global and local economies in 2020.

Sunny Nwosu, the founding Coordinator of Independent Shareholders of Nigeria (ISAN), commended the company’s performance and returns on investment. He, however, advised that the company should consider a bonus issue to shareholders because of the robust statutory reserves and regulatory requirements.

Also speaking, the President of Nigeria Shareholders Solidarity Association, Mr. Matthew Akinlade, said the performance was a very good one based on the financial indices.

Another shareholder, Mr. Adebayo Adeleke, commended the company for weathering the storm of 2020 and its challenging operating environment. He praised the company for the foresight of having a holding company which now enables it to make investment decisions easily.

The shareholders approved the final dividend of 55 kobo per share, bringing the total dividend to 65 kobo, having paid an interim dividend of 10 kobo last year.

Addressing the shareholders at the meeting, the Chairman of the board of directors, Dr. (Mrs.) Omobola Johnson, said, “I am delighted to report that our company recorded significant successes during the 2020 financial year despite the challenging operating environment, a fallout of the global Covid-19 pandemic and the resulting weak oil earnings, Naira devaluation and high inflation.”

She noted that the successes recorded by the company in 2020 was an affirmation of the robustness of the group’s business model, which allowed it to quickly adapt to the fast-changing environment, the astute leadership of the company supported by energetic employees using technology to efficiently provide prompt services to clients.

According to her, despite the challenges faced during the year under review, the group more than doubled its profits by posting a profit after tax of N12.69 billion as against N6.01 achieved in 2019.

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