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Agric Sector, Others to Attract N1.8tn Investments from NIRSAL

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Agriculture - Investors King
  • Agric Sector, Others to Attract N1.8tn Investments from NIRSAL

The Nigeria Incentives Risk-based Sharing for Agricultural Lending is working at mobilising a total investment of $6bn (N1.83tn) annually into the agricultural value chain as well as other sectors of the economy.

The Managing Director, NIRSAL, Mr Aliyu Abdulhameed, said this in Abuja on the sidelines of the first Annual NACCIMA-NIRSAL agribusiness and policy linkage conference.

NIRSAL is an agency set up by the Central Bank of Nigeria to provide guarantee for banks’ lending to agricultural value chain.

The conference had as its theme ‘Implementing the agriculture component of the Economic Recovery Growth Plan’.

Abdulhameed said the need to mobilise investment for the agricultural value chain was born out of the conviction that it would assist the government achieve its objective of increasing annual agricultural growth from 4.1 per cent to 8.3 per cent by December 2020 as contained in the ERGP.

This, he added, would represent an average growth rate of 6.9 per cent across the three year plan period.

He lamented that while the country is endowed with abundant natural resources, there was insufficient capital to actualise this potential.

He said, “We are naturally endowed with land, water, climate and the market and at very competitive level, but we lack the full capital to actualise these opportunities. In order to leapfrog the development as desired by the agricultural sector, fully identified actors have to be attracted into Nigeria.

“At the heart of its functions is its role in facilitating and increasing the flow of commercial revenue and investment in agriculture and fixing the broken value chains which are impediments in achieving increased financial investments. The objective is to raise commercial bank lending and other investments from three per cent as it is today to about 10 per cent by the year 2026. We want to see how we can mobilise up to $6bn annually into the Nigerian business sector.’’

Giving the reason why the agricultural sector was underperforming, Abdulhameed said that despite the natural talent and large domestic market, Nigeria was generally lacking in four critical areas, which he listed as technology, equipment, human/intellectual capacity and finance.

He said, “Statistics show that Nigeria has only 6.5 tractors available per 100sq.km compared to global average of 200. Bank lending to agriculture is less than five per cent of total lending at interest rates as high as 25 per cent. Agricultural practices and methods are still very crude and the country lacks modern technologies and infrastructure for logistics, storage and processing.”

He added that NIRSAL was in partnership with NACCIMA to promote strategic approaches in solving endemic challenges that appeared in the process of increasing agricultural financing.

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

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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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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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