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BoI’s $1.5b for Manufacturers, Others

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Steel Manufacture At Evraz Plc West-Siberian Metallurgical Plant
  • BoI’s $1.5b for Manufacturers, Others

BANK of Industry (BoI) has offered $1.5billion to manufacturers, its Managing Director Bol, Kayode Pitan has said.

He stated this at an event organised by the Manufacturers Association of Nigeria (MAN) in Lagos.

Speaking on “Mainstreaming policies to catalyse industrial renaissance”, he said the funds – $750 million from international banks and N800 million from the Nigerian Content Board – were also available for the oil sector to boost the Nigerian Content.

He said the bank supports emerging industries, such as the creative arts, renewable energy, biogas and gender owned business at a single digit with long gestation unlike the conventional banks.

Pitan, who was represented by the General Manager Large Enterprise, Joseph Babatunde, urged local operators into agro-processing, solid minerals, movies and theatres to harness the low interest loans to grow their businesses.

Nigeria Managing Director Development Bank Tony Okpanachi said the bank provides Micro Small and Medium Enterprises (MSME) well-structured loans of up to 10 years through the second tier for equipment financing, manufacturing, among others.

He disclosed that the bank would establish the First SME’s Credit Guarantee Bank that would share up to 50 percent of the sectors risk. In addition, the bank is also building the capacity of small enterprises.

He said MSME’s contribute over 50 percent to the Gross Demostic product (GDP) and employs over 80 per cent of the productive work force and should be supported if the economy must grow.

Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr Dakuku Peterside called for long-term credit at single digit interest rate for the manufacturing and maritime sectors.

Peterside, who spoke on “Promoting manufacturing through approved port infrastructure and access to long-term credit window’’, said long-term credit would eliminate the huge overhead cost associated with transportation of materials and enhance the operations of the ports.

He said port infrastructure were capital intensive with long period of return on investment, hence required long-term credit of at least 5 per cent to encourage investors.

He proposed a dedicated revolving fund for the development of infrastructure for the ports and the manufacturing sector including manufacturing hobs at the ports to cut transportation cost. Peterside represented by Dr Maduka Ozili, Assistant Director, Shipping Promotions, NIMASA urged government to allocate space at highly subsidised rates at the ports for investors to establish manufacturing plants.

Furthermore he asked for special ports to be designated for raw materials and export business which according to him that is the only way the sector can grow.

He said: “The Federal Government should be encouraged to invest in cargo handling and the acquisition of expansive land mass at ports for easy export of manufactured goods.

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.

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NCDMB and NEXIM Sign $30 Million Agreement to Support Oil and Gas Services Firms

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The Nigerian Content Development Monitoring Board (NCDMB) and the Nigerian Export-Import Bank (NEXIM) yesterday signed a $30 million agreement on working capital and capacity building fund to support oil and gas services firms.

Simbi Wabote, Executive Secretary, NCDMB and Managing Director, NEXIM Bank, Abba Bello, signed the funding agreement at the Abuja office of the Nigerian content monitoring agency.

Wabote said the Oil Producers Trade Section, Independent Petroleum Producers Group and Petroleum Technology Association of Nigeria had raised concerns over funding challenges confronting oil services firms, as this had made most of the companies to consider downsizing their staff.

He said, “The OPTS and IPPG had at some point raised before the NCDMB the inability of most indigenous contractors to provide services to them due to challenges of funding.

“This was especially when we got struck by the COVID-19 pandemic. I recall receiving several letters particularly from IPPG trying to see how we can support this.”

He added, “I also recall receiving similar letters from PETAN when the COVID-19 struck and most of their members had nothing to do anymore.

“This is because companies were shut down and their members were threatening on how to downsize and take Nigerians off their payrolls.

“Based on this, we then set up a committee to say how do we support these firms with the provision of working capital.”

Wabote noted the roll-out date for the fund would be July 1, 2021 and that the fund size of $30m would be boosted by matching funds of the same amount to be provided by NEXIM in naira (to be converted at prevailing official exchange rate).

“The scheme shall cover loans for working capital support and capacity building, oil service contracts, invoice discounting including acquisition of low-end equipment to service short-term contracts/service obligations,” he stated.

He said the target market comprised Nigerian oil service providers which belonged to a professional association in the Nigerian oil and gas industry and commercially viable with a business relationship with either an international oil company or a major Nigerian oil firm.

“Maximum amount that can be borrowed by a single obligor is $1m or its naira equivalent at the official exchange rate prevailing at the time of borrowing,” Wabote said.

He added, “Tenor shall be up to 12 months for working capital loans and up to three years for capacity building loans with moratorium of up to 12 months.

“The applicable interest rate shall be five per cent per annum all-in for dollar-denominated loans and eight per cent all-in per annum for naira-denominated loans and the rate shall be fixed throughout the tenor of the loan.”

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LivingTrust Mortgage Bank Appoints Mr. Timothy Olorunsogo Gbadeyan as Company’s Secretary

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LivingTrust Mortgage bank has appointed Mr. Timothy Olorunsogo Gbadeyan as company secretary/head of legal services.

The bank disclosed in a statement signed by Ikechukwu Omuku, the Finance Officer/Head, Investor Relations, LivingTrust Mortgage Bank Plc.

The statement reads “We wish to notify The Nigerian Stock Exchange and the investing public of the appointment Mr. Timothy Olorunsogo Gbadeyan as Company Secretary/Head, Legal Services of LivingTrust Mortgage Bank Plc.

“Mr. Gbadeyan is a consummate corporate attorney with experiential background in deals advisory, real estate finance, facioring, general commercial transactions, corporate governance, company secretarial services and regulatory compliance. Until his appointment, he was the Head of Legal Services of Infinity Trust Mortgage Bank Plc.”

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Farmforte, Others Signs MoU To Strengthen and Sustain Growth in Agricultural Sector

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Farmforte Limited has signed a strategic Memorandum of Understanding with the Agricultural Fresh Produce Growers and Exporters Association of Nigeria; HYBR, a pan-African innovation firm; and ALTS, a consulting and strategy development firm.

The firm said in a statement on Sunday that the partnership would strengthen common interest cooperation and stimulate inclusive and sustainable growth within the agricultural sector, by capitalising on the synergy and comparative advantage offered by each organisation.

Speaking during the signing ceremony, Farmforte Co-Chief Executive Officer, Osazuwa Osayi, said, “Our mid to long-term strategic goals are further reaffirmed, as this partnership will facilitate the sharing of knowledge, ideas, and expertise across the agricultural sector.

“We will collectively address initiatives and approaches concerning agricultural investments, food security, and the overall robustness of the value chain.”

He said the collaboration would also unlock the full potential of the sector and place it on a renewed path for success, especially within a post-pandemic economy.

The President of AFGEAN, Tajuddeen Dantata, said, “By creating dialogue and fostering investment in the horticulture sector, this partnership will endeavor to support Farmforte in its exporting efforts by improving operational efficacy and cost-savings, while ultimately driving socio-economic growth in the country.”

The Chief Executive Officer, HYBR, Charles Ojei, said to drive inclusion, sustainability, job creation, and Nigeria’s overall economic growth, the optimisation of the agriculture value chain was critical.

“This collaboration is a fusion of the complementary capabilities of all partners to move a bigger agenda forward.”

The Managing Partner, ALTS, Akintunde Sawyerr, said, “The goal of this partnership is to support Farmforte’s vision of becoming the largest agribusiness by 2035 via scalable and world-class innovation across its enterprise.”

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