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BoI Shops for N1tn to Finance Economic Recovery Plan



Malaysian Ringgits And Stock Boards Inside RHB Investment Bank
  • BoI Shops for N1tn to Finance Economic Recovery Plan

The Bank of Industry is seeking to raise about N1tn from local and international sources to finance the industrial component of the Economic Recovery and Growth Plan.

The Acting Managing Director, BoI, Mr. Waheed Olagunju, stated this in Abuja at the 57th Annual General Meeting of the bank.

The ERGP, which was launched last month by President Muhammadu Buhari, is the government’s blueprint to take the economy out of recession and ensure inclusive growth and sustainable development.

Olagunju said the N1tn would be used to support ventures that would fast-track the country’s realisation of the Sustainable Development Goals.

This, he added, would enable the bank to increase its risk assets to N1.2tn by 2019.

He noted the bank had commenced discussion with the Development Bank of Nigeria and some foreign as well as multilateral development finance institutions.

He added that one of the major targets of the bank was to ensure that the Micro, Small and Medium-scale Enterprises access up to 30 per cent of its total loan portfolio by 2019.

This he noted, was in line with the bank’s revalidated strategic plan covering 2016 to 2019.

Olagunju explained, “The BoI has embarked on a N1tn fund mobilisation drive within and outside the country to part finance the industrial component of the ERGP.

“Under the plan, it is envisaged that enterprises financed by the BoI will generate more than five million jobs.”

The BoI boss acknowledged the efforts by both the Federal Government and the Central Bank of Nigeria to make the bank more viable despite competing needs and financial constraints.

Giving a breakdown of the bank’s activities in the 2016 financial year, he said the volume of new loans rose by 10 per cent to N171bn from N156bn in 2015.

He added that disbursements to SMEs similarly went up by 42 per cent within the same period to N8bn from N5.64bn.

Olagunju put the operating profit of the BoI before tax at N17bn in 2016, representing an increase of 44 per cent over the 2015 profit of N11.9bn.

The Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, commended the bank for its achievements during the 2016 financial year.

He added that BoI had also gained significant traction in the implementation of the Government Enterprise and Empowerment Programme being rolled out in all the 36 states of the federation and the Federal Capital Territory.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Union Bank Launches Investment App M36 for Fixed-income Products, Others



M36, a new digital platform designed to deliver a wide range of investment products directly to individuals, has launched in Nigeria.

Through an innovative, user-friendly app, M36 offers investment options not typically available on self-service digital platforms including foreign currency transactions, commercial papers, local and foreign denominated bonds, treasury bills and other fixed income products.

M36 also offers bespoke solutions for both new and experienced investors as well as a 24-hour lifestyle concierge service to meet the needs of discerning customers.

In a rapidly evolving environment with changing consumer behavior fueled by technology and growing access to information, M36 is looking to expand opportunities for investors at all levels, while also simplifying the process of investing.

M36 was developed by Union Bank as part of its strategic focus on delivering superior customer solutions leveraging technology and innovation.

The Bank partnered with several asset management companies to deliver the broad range of investment products on the M36 platform.

Chuka Emerole, Head, Treasury at Union Bank said about M36:

“M36 eliminates the traditional barriers to investing and offers investors direct access to financial instruments that would usually require the service of an investment or relationship manager.

“We’ve designed M36 to ensure simplicity in the onboarding and investing process while also empowering the customer to make sound investment choices based on their financial objectives.

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United States Firms Operating in Nigeria Plans to Invest $2.4 Billion in Nigeria – Report



United States Firms Operating in Nigeria Plans to Invest $2.4 Billion in Nigeria – Report

A report compiled by the American Business Council, the United States Embassy, Verraki, KPMG and PwC showed American firms operating in Nigeria plans to invest $2.37 billion in the country in the next three years.

In the 2020 Nigeria Economic Impact Survey, the impact of US firms on the Nigerian economy was analysed while changes in business revenue, foreign investment, job creation, gross value added and plans for expansion were measured.

45 United States companies operating in Nigeria were surveyed and data obtained analysed, according to the report.

The report revealed that US companies in Nigeria created over 30,000 indirect jobs in 2019, a decline from three million in 2018 and over 13,100 direct jobs, down from 18,000 in 2018.

The firms realised N1.08 trillion in revenue in 2019, representing a decline from N1.47 trillion when compared to N1.47 trillion generated in 2018.

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Afreximbank, AAAM to Drive Automotive Investment




Afreximbank, AAAM to Drive Automotive Investment

The African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) have entered into a Memorandum of Understanding (MoU) for the financing and promotion of the automotive industry in Africa.

President of Afreximbank, Prof. Benedict Oramah and President of AAAM/Managing Director of Nissan Africa, Mike Whitfield, signed the MoU in early February, according to a statement yesterday.

The deal formalised the basis for a partnership aimed at boosting regional automotive value chains and financing for the automotive industry while supporting the development of enabling policies, technical assistance, and capacity building initiatives.

Oramah, said, “the strategic partnership with AAAM will facilitate the implementation of the Bank’s Automotive programme which aims to catalyze the development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area (AfCFTA).”

Under the terms of the MoU, Afreximbank and AAAM will work together to foster the emergence of regional value chains with a focus on value-added manufacturing created through partnerships between global Original Equipment Manufacturers (OEM), suppliers, and local partners.

The two organisations plan to undertake comprehensive studies to map potential regional automotive value chains on the continent in regional economic clusters, in order to enable the manufacture of automotive components for supply to hub assemblers.

“To support the emergence of the African automotive industry, they will collaborate to provide financing to industry players along the whole automotive value chain. The potential interventions include lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing, amongst others.

“The MoU also provides for them to support, in conjunction with the African Union Commission and the AfCFTA Secretariat, the development of coherent national, regional and continental automotive policies, and strategies.

“With an integrated market under the AfCFTA, abundant and cheap labour, natural resource wealth, and a growing middle class, African countries are increasingly turning their attention to support the emergence of their automotive industries.

“Therefore, the collaboration between Afreximbank and AAAM will be an opportunity to empower the aspirations of African countries towards re-focusing their economies on industrialisation and export manufacturing and fostering the emergence of regional value chains,” the statement added.

“The signing of the MoU with Afreximbank is an exciting milestone for the development of the automotive industry in Africa. At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibiters for the growth and development of the automotive industry in Africa and having Afreximbank on board is a game changer and a hugely positive development,” CEO of AAAM, David Coffey said.

“It is wonderful to have a partner that is as committed as the AAAM to driving the development and growth of our sector on the continent; this collaboration will ensure genuine progress for our industry in Africa,” Coffey added.

Other areas covered by the MoU include working with the African Union and the African Organisation for Standardisation to harmonise automotive standards across the continent and developing an automotive focused training program for both the public and private sector.

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