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Adeosun: 62% of N220bn MSME Funds Reserved for Women

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  • Adeosun: 62% of N220bn MSME Funds  Reserved for Women

The Minister of Finance, Mrs. Kemi Adeosun, has urged Nigerian women to key into the Central Bank of Nigeria’s (CBN) N220 billion Medum Small and Mirco Entetprises (MSMEs) fund.

She regretted hat despite the fact that 62 per cent of the facility is for women, less than 20 per cent of it has been drawn down, as at the last count.

She challenged Nigerian women to avail themselves of the immense opportunities created by the current economic challenges in the country.

The minister, who was the keynote speaker at the launch of First Gem, the first female-focused product from First Bank Nigeria Limited, on Friday, in Lagos, said the sheer population of Nigerian women should be an asset to the country in getting out of its economic difficulties.

As the federal government actualises its shift of emphasis from oil to other sectors of the economy, the minister said given the potential of the MSMEs to trigger economic rebound, Nigerian women would be expected to use their population strength to take the lead in driving the new agenda.

“Women count in this economy. Fifty per cent of our economy is MSMEs. The majority of them are being driven by women. Seventy per cent of MSMEs are women-owned.

“So, it is obvious that if you want to get the economy going, you have to target the MSMEs,” she was quoted to have said in a statement released yesterday by her Meda aide, Mr. Festus Akanbi.

According to the minister, the activities of small players, especially at the micro level appear quite sustainable.

“The majority of the people who work in Nigeria work for companies or employers who employ eight persons or less.”

She stressed that entrepreneurs are incredibly important to Nigeria’s growth because they generate the jobs needed to stimulate the economy.

The minister expressed the happiness that women have already swung into action by producing locally made goods, which used to be imported.

Speaking on the First Bank’s product offer, the minister admonished women to see First Gem as an opportunity for wealth creation.

“There is a huge opportunity for import substitution. This product is therefore pushing women out of their comfort zone and must be supported. Any programme that is going to assist women access all the available resource is important,” she said.

The minister pointed out that the Bank of Industry (BoI) also has some facilities to assist women entrepreneurs, saying there is no barrier stopping women from accessing such facilities.

She also challenged women to bid for contracts in order to show their skills and to contribute to nation building.

Given what she did scribed as the sincerity of the womenfolk, the minister stated that Nigeria would not be experiencing the problem of abandoned projects if women were given the chance because, “they take their businesses seriously.”

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.

Banking Sector

COVID-19: CBN Extends Loan Repayment by Another One Year

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Central Bank Extends One-Year Moratorium by 12 Months

The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.

The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.

In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.

The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.

“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.

“Following the expiration of the above timelines, the CBN hereby approves as follows:

“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.

“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”

It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.

To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.

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Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

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MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

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Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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