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Senate Okays Ogun’s $350m W’Bank Loan Request



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  • Senate Okays Ogun’s $350m W’Bank Loan Request

The Senate on Thursday approved the move by the Ogun State Government to obtain a $350m loan from the World Bank.

The upper chamber of the National Assembly also approved the 2018 budget of the Federal Capital Territory with a total estimate of N222,360,551,512.

The approval of Ogun State’s loan request followed the adoption of the report by the Senate Committee on Local and Foreign Debts at the plenary on Thursday.

The committee, which is chaired by Senator Shehu Sani (Kaduna-Central), said in the report that the loan had been captured in the 2016-2018 Medium-Term Expenditure Framework and Fiscal Strategy Paper and the 2016-2018 External Borrowing (Rolling) Plan of the Federal Government.

The report read in part, “Based on the submissions and interactions with some of the invited government officials, the committee observed as follows:

“That the Ogun State Development Policy Operation (Budget Support) for $350m was approved by the World Bank in 2016 and was captured in the 2016-2018 borrowing plan as approved by the National Assembly.

“That the credit facility has an attractive low-financing data of 1.25 per cent interest; moratorium of five years and a 25-year maturity tenor; that the facility is already captured in the 2016-2018 Medium-Term Expenditure Framework; that Ogun State has a low and acceptable debt sustainability level, and therefore is eligible to borrow.

“That the Development Policy Operation Loan is basically used to finance deficit in the state’s annual budget, thereby enhancing the capacity of the state government to execute its key projects; that the Ogun State Government has met the various conditions by the World Bank to qualify for the loan.

“That the Ogun State Government has put in place institution’s framework for transparent and accountable budgetary and financial process; that the various projects to be funded from the facility will engender economic growth and increase revenue generation capacity of the state and create employment opportunities.

“That the Ogun State Government has shown a high degree of prudence in implementing her annual budget.”

The panel, therefore, recommended that “the Senate do approve the Ogun State Development Policy Operation in the sum of $350m as contained in the 2016-2018 External Borrowing (Rolling) Plan of Mr. President, Commander-in-Chief of the Armed Forces.”

The recommendation was unanimously approved by the lawmakers.

For the FCT budget, the Senate approved the sum of N129.3bn for capital expenditure and N93bn for recurrent. The personnel cost is N52.5bn, while the overheads is N40.4bn.

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.


Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth



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.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans




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.

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




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.”

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