- NEXIM Bank Okays N25bn Loan for Non-oil Exporters
The Nigerian Export-Import Bank on Thursday gave approval for the disbursement of the sum of N25bn to exporters in the non-oil sector.
The move is part of efforts aimed at stimulating the non-oil sector to become a major foreign exchange earner for the country.
The development was confirmed by the Managing Director, NEXIM Bank, Mr Abba Bello, on Thursday in Abuja.
He said the approval of the N25bn facility followed a review of various applications under the Export Development Fund.
The review, according to him, was done at a meeting of the Board of Directors held on Thursday in Abuja.
Bello said the N25bn loan approved for non-oil exporters was expected to support about 15,000 direct and indirect jobs, and facilitate foreign exchange inflow of about $100m from non-oil exports.
He stated, “The Nigerian Export-Import Bank has approved the disbursement of loans totalling about N25bn in support of various projects in the non-oil export sector.
“Beneficiaries included exporters of agricultural and value-added products, who submitted applications for stocking facilities and working capital to enable them to execute their export contracts.”
The NEXIM Bank boss explained that the facility would be disbursed to exporters of agricultural and value-added products, who submitted applications for working capital to enable them execute their export contracts.
The projects, he noted, were distributed across the country and would have a significant impact on the economy particularly in the area of job creation and poverty reduction.
Some of the products that would benefit from the loan are cocoa, cashew, sesame seed, gum Arabic and leather.
He added, “It is expected that disbursement will commence immediately to maximise the benefits of the export season towards achieving the economic diversification objectives of the administration of President Muhammadu Buhari under the Economic Recovery and Growth Plan,” Bello added.
The Central Bank of Nigeria established the N50bn Export Development Fund to be disbursed at single digit, which is currently being managed by NEXIM.
Following the inauguration of the new board in March, the Minister of Finance had charged the members to hit the ground running to ensure that the institution achieved its mandate of diversifying the foreign exchange earnings of the Nigerian economy.
Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper
Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.
This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.
Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.
The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.
FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.
The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.
He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.
Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.
In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.
The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.
African Airlines Projected to Cut Losses to $400m in 2024, Says IATA
The International Air Transport Association (IATA) has forecasted a reduction in losses for Nigerian and other African airlines from $500 million in 2023 to $400 million in 2024.
The Switzerland-based IATA made this projection while presenting the global airline industry outlook in Geneva, Switzerland, on Wednesday.
IATA’s Director-General, Willie Walsh, shared the outlook, stating that global airlines are expected to generate approximately $964 billion in revenue in the coming year.
The report indicated that airline industry net profits are anticipated to reach $25.7 billion in 2024, reflecting a slight improvement over the projected $23.3 billion net profit for 2023.
Despite the challenges faced by the aviation industry in recent years, IATA sees the $25.7 billion net profit in 2024 as a testament to aviation’s resilience.
Walsh acknowledged the impressive speed of recovery but emphasized that the net profit margin of 2.7% remains below industry expectations.
IATA estimates that around 4.7 billion people will travel in 2024, surpassing the pre-pandemic level of 4.5 billion recorded in 2019.
However, Walsh highlighted ongoing challenges, including regulatory burdens, fragmentation, high infrastructure costs, and a supply chain populated with uncertainties.
He emphasized the need for the industry to build a resilient future, given its significant contribution to global GDP and livelihoods.
Fuel prices are expected to average $113.8 per barrel in 2024, accounting for 31% of all operating costs, totaling $281 billion.
Walsh concluded by expressing optimism about more normal growth patterns for both passenger and cargo in the post-pandemic era.
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