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FG Invests N87.2bn in Fertiliser Production

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Agriculture
  • FG Invests N87.2bn in Fertiliser Production

The Federal Government through the Nigerian Sovereign Investment Authority, which is the agency managing the Sovereign Wealth Fund, will from next week begin the implementation of a fertiliser project that will enable the country to conserve its foreign exchange by about $1.5bn (about N458bn) in the next three years.

Details of the fertiliser project, which were made available to our correspondent on Friday in Abuja, would see the NSIA and its partners invest a total sum of $286.4m (N87.2bn) in the project for blending of one million metric tonnes of fertiliser.

The SWF, which was set up in 2013 with about $1.55bn, has three pots from which investments can be anchored.

The pots are Future Generation Fund, Infrastructure Fund, and Fiscal Stabilisation Fund.

The NSIA had allocated 20 per cent of the fund to the Stabilisation Fund; 40 per cent to the Future Generation Fund and another 40 per cent to Infrastructure Fund.

Just last week, the National Economic Council gave approval that the sum of $250m (N76.3bn) be injected as additional capital to the SWF.

The fertiliser project, it was learnt, was part of the moves by the agency to increase its investment in domestic infrastructure owing to the immense opportunities in that segment of the economy.

The objective of the project is to deliver fertiliser to farmers in time and at a reasonable price of N5,500 per 50kg bag.

This, according to the project document, is a reduction of between 30 per cent and 40 per cent from current price, with deliveries starting from next week from the blending plants in Kaduna.

This, according to the project document, will enable the Federal Government to eliminate subsidy in the fertiliser sale projected to be about N120bn based on the budgetary provision for fertiliser subsidy in 2017.

Cumulatively, about N720bn is expected to be saved through import substitution on fertiliser within the next three years of the implementation of the project and create thousands of jobs by reviving the local blending plants.

The document read in part, “The objective is to deliver fertiliser to farmers in time and at a reasonable price. The target is N5,500/50kg bag.

“For the wet season, we are targeting one million metric tonnes in five batches of 200,000 tonnes each starting in February this year.”

Speaking on the impact of the project on the economy, the Managing Director of NSIA, Mr. Uche Orji, said the country would begin to see massive harvest of agricultural produce.

He added that the agency would be taking over the Nigerian Commodities Exchange under a pre-privatisation investment arrangement, adding that this would enable the NSIA to inject about $10m into the revival of the exchange.

Orji noted that under the arrangement, the NSIA would revive the commodities exchange by adding value to its operations and making it more attractive to investors before its final privatisation by the Bureau of Public Enterprises.

He said with the taking over of the commodities exchange as well as its investment in the fertiliser plant, the agency would be attracting more investments into the agricultural sector, particularly in the area of storage facilities.

He said, “We are working with the BPE on the commodities exchange. The commodities exchange is not operational; we will invest in its operations and use it as a way of creating infrastructure for agriculture, warehouse, storage, silos and have an exchange that works.

“The privatisation of the Nigerian Commodity Exchange between the BPE and the NSIA is expected to be concluded this year at a cost of $10m.”

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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Investment

Saudi Arabia Aims for $80 Billion Tourism Investment to Fuel Vision 2030 Goals

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tourism

Saudi Arabia is embarking on a bold venture to attract up to $80 billion in private investment into its burgeoning tourism industry, a move pivotal to realizing its ambitious Vision 2030 objectives.

Tourism Minister Ahmed Al Khateeb unveiled the kingdom’s aspiration during an interview in Riyadh, emphasizing the imperative role of the private sector in spearheading investment endeavors.

With plans to disburse approximately $800 billion on tourism over the next decade, Saudi Arabia is steadfast in its pursuit to diversify its economy and reduce dependency on oil revenues.

Vision 2030 outlines a trajectory for the kingdom to metamorphose into one of the world’s premier tourist destinations, targeting 150 million annual visitors by 2030, a significant portion originating from overseas.

While the government and sovereign wealth fund have historically fueled tourism development, securing substantial foreign direct investment, particularly from the private sector, emerges as paramount in expediting Vision 2030 initiatives.

The kingdom’s fiscal projections, forecasting deficits until 2026, underscore the urgency of engaging private investors to actualize the ambitious tourism blueprint.

Saudi Arabia, having welcomed 100 million tourists in 2023, predominantly domestic travelers, eyes international markets such as India, China, the UK, France, and Germany for tourist influx.

A new program launched by the Ministry of Tourism aims to streamline investment processes, potentially unlocking $11 billion in private investment, bolstering Saudi Arabia’s tourism trajectory and reshaping its economic landscape.

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Treasury Bills

CBN Unveils Plan to Settle N1.64 Trillion Treasury Bills in Q2 2024

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FG Borrows

The Central Bank of Nigeria (CBN) has announced its strategic approach to managing liquidity and meeting financial obligations by unveiling a comprehensive plan to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024.

This initiative, part of the CBN’s Nigeria Treasury Bills Issue programme, aims to regulate the money supply within the economy while effectively managing liquidity dynamics.

According to documents obtained by Investors King, the TBs settlement program is slated to commence on March 7th and conclude on May 23rd, 2024.

The CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

The breakdown of the settlement plan reveals monthly settlements to address maturing TBs. In March, the CBN plans to settle N660.62 billion worth of TBs, followed by N292.17 billion in April and N688.3 billion in May.

Market analysts interpret this move as a testament to the CBN’s commitment to managing financial obligations and maintaining economic stability.

It provides investors with opportunities to engage in short-term financial instruments while contributing to overall liquidity dynamics.

The strategic settlement plan reflects the CBN’s proactive stance in navigating economic challenges and ensuring stability within the financial landscape.

As the apex bank implements these measures, stakeholders will closely monitor their impact on market dynamics and economic indicators, anticipating implications for investment decisions and monetary policy outlooks.

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Investment

China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

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General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

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