Connect with us

Finance

CBN Releases $300m to Foreign Airlines

Published

on

Foreign Airlines
  • CBN Releases $300m to Foreign Airlines

To cushion the effect of the cash squeeze affecting foreign airlines flying into Nigeria, the Central Bank of Nigeria (CBN) has released $300 million out of the $600 million airlines fund stuck in the country.

Some of the airlines have either stopped coming into Nigeria or are threatening to stop because of the inability to remit their money out of the country.

Minister of State (Aviation) Hadi Sirika, who broke the news to the airlines after the Federal Executive Council (FEC) meeting in Abuja, said the balance would soon be released.

Sirika said: “Government through the CBN has made available $300 million out of the $600 million of the airlines’ funds stuck in Nigeria to pay the airlines to demonstrate its commitment to the sector.

“And with devaluation, $600 million could be $1 billion. With government intervention they have been given $300 million and gradually we will clear everything and once that happens, they (airlines threatening to quit) are not going anywhere.”

On the airlines’ threat to leave Nigeria, he said: “I think it is a response to how the industry is doing globally, especially Nigeria with recession, our inability to get the airlines to repatriate their currency that they earn through sales of tickets.

“They find it very difficult to operate and do business. Their inability to get Jet A1 at some point, and for other operational reasons; I did say that these are commercial decisions that the airlines will take but with the way the routes are and with what we have been doing to correct these things that any airline will pull out.

“A 100 per cent of foreign exchange being required by local airlines is being provided now. Aviation is dollar denominated, you buy aircraft in dollar, you service in dollar, you train your crew in dollar; you do everything in dollar. And we simply do not have the dollar to pay these airlines. But now as we are talking

“Nigeria has a population of 177 million serving west and central Africa, 600 million people market, double that of United States, half of India, equal to Europe; so this is a very important market and they know and they will stay here. I believe we are also offering them incentives.”

The government, he said, has been talking to airlines, such as Egypt Air, British Airways, Turkish Air, which fly in Nigeria with undesirable aircraft while they put better aircraft on other routes

“However, some of them are constrained by some of the infrastructure we have in place. For example, Emirate will love to bring the kind of aircraft they fly around the world but the apron in Abuja is not supporting that service. That is why the aircraft they take to Lagos is different from the one they take to Abuja.

“That inadequacy is also being addressed and once that is done, we will have befitting aircraft coming. This has always been a challenge.

“But the most important incentive is that between now and Wednesday we will appoint transaction adviser for the national carrier. Once that is in place, Nigerians will have options, there will be competition, good aircraft and this will bring the price down.” Sirika, a pilot, said.

The minister also announced that yesterday’s Federal Executive Council (FEC) meeting approved additional N1.57 billion for the rehabilitation and refurbishment of the Port Harcourt airport.

According to him, FEC approved the rehabilitation cost of the international wing of the airport from N777,726,669.30 to N1,684,520,310.58 for the original contractor Messes Entaba.

The second project, he said, is the refurbishment of the airport terminal building phase II domestic wing from N746,830,782.12 to N1,411,662,855.67

“So, very soon we will complete that very important airport, especially the arrival hall. Port Harcourt airport has been tagged the worst airport in the world but by the grace of God and the wisdom of council, it will be completed,” he added.

Sirika also said FEC approved the ratification of climate change Paris agreement and bilateral agreement against double taxation with Kenya.

He said there would be improved security and more parking spaces at the Nnamdi Azikiwe International Airport, Abuja after it is concessioned.

Sirika said: “Once the airport is concessioned, all these will take place. Just be patient in the next 24 to 36 months, most of these things will be in place

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

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

Published

on

Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

Continue Reading

Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

Published

on

micro-finance-bank

CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

Continue Reading

Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

Published

on

FMDQ

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

FMDQ Securities Exchange Limited has announced the approval of the quotation of the Valency Agro Nigeria Limited N5.12bn Series 1 Commercial Paper under its N20bn CP Programme on its platform.

The Exchange said in fostering the development of the Nigerian debt capital markets, it had continued to avail its credible and efficient platform as well as tailor its listings and quotations services to suit the needs of issuers and registration members through innovative and uninterrupted service delivery.

It said in a statement on Thursday that the Valency Agro Nigeria CP debut issue came at a time when the Nigerian economy was bedeviled with soaring food prices, amidst compounding challenges of insecurity.

It said the agricultural sector and its attendant transformation agenda had never been more important in driving increased and sustainable production of agricultural products as well as the derived foreign earnings through exports.

The Exchange said the proceeds from the issue of the CP would be applied by Valency Agro towards meeting the mid-term working capital requirements of the various agricultural produce under its portfolio such as cashew, sesame, cocoa and in value addition prior to export.

The Executive Director, Valency Agro Nigeria Limited, Mr Sumit Jain, was quoted as saying, “We are thankful to our investors towards showing their faith in our agenda to grow the agriculture-focused business with a clear aim to maximise value addition and create employment opportunities in Nigeria.

“We would also like to commend the efforts made by FBNQuest Merchant Bank Limited’s team to build the reach and FMDQ for their unconditional support for the industry”.

The Head, Capital Markets, FBNQuest Merchant Bank, Mr Oluseun Olatidoye, said, “FBNQuest Merchant Bank Limited is delighted with the successful debut of the N5.12bn Series 1 CP issued by Valency Agro Nigeria Limited. This reiterates our effort to enable underserved sectors access the debt markets, optimise their capital structure and further deepen the domestic capital markets.

“We are proud of the instrumental role FBNQuest Merchant Bank played in this transaction and appreciate the trust the management of Valency Agro placed in us to assist them. Our clients remain our priority, and we strongly believe their success is our success.”

Continue Reading

Trending