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CBN Pegs Maximum Credit Facility to Agric, Manufacturing at N10bn

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CBN
  • CBN Pegs Maximum Credit Facility to Agric, Manufacturing at N10bn

The Central Bank of Nigeria has released the guidelines for accessing the Real Sector Support Facility aimed at channelling funds to the manufacturing and agricultural sector.

It said in the statement that the maximum facility would be N10bn per project and facilities were to be administered at an interest rate of nine per cent per annum.

The release of the guidelines, according to the apex bank, is part of measures aimed at increasing the flow of credit to the real sector of the economy.

This is expected to consolidate and sustain the nation’s economic recovery.

The CBN said in the statement issued on Thursday night by its Acting Director of Corporate Communications, Mr Isaac Okorafor, that the Deposit Money Banks would henceforth be incentivised to direct affordable, long-term bank credit to the manufacturing, agriculture.

Apart from the manufacturing and agriculture sectors, other sectors considered by the CBN as employment and growth stimulating would also benefit from the long-term credit to be given at single digit interest rate.

He disclosed that Corporate/Triple-A rated companies would be encouraged to issue long-term Corporate Bonds under the guidelines.

He added that a Corporate Bond Funding Programme had been put in place, adding that the bond programme, involved investment by the CBN and the general public in Corporate Bonds issued by companies.

This, he noted, was subject to the intensified transparency requirements for participating companies.

He also explained in the statement that the requirements for the bond programme would include publishing through printing of an Information Memorandum which would spell out the details of the projects for which the funds would be required.

It would also provide the terms and conditions that would show that these are long-term ones that would generate employment and stimulate growth.

The statement read in part, “The bank had put in place a programme under the Differentiated Cash Reserves Requirement Regime whereby the DMBs interested in providing Credit Financing to greenfield (new) and brownfield (expansion) projects in the real sector (agriculture and manufacturing) could request for the release of funds from their Cash Reserves Requirements to finance the projects; subject to the DMBs providing verifiable evidence that the funds shall be directed at the approved projects by the CBN.

“The tenor for the differentiated CRR would be a minimum of seven years with a two-year moratorium.

“For the Corporate Bonds programme, the tenor and the moratorium would be specified in the prospectus by the issuing corporate.”

The apex bank called for a total compliance with the guidelines by stakeholders, adding that it was determined to encourage projects that would further enhance Nigeria’s import substitution strategies.

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

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

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Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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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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