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Financially Excluded a Minus to Our GDP, Says SEC



security and exchange commission
  • Financially Excluded a Minus to Our GDP, Says SEC

Securities and Exchange Commission (SEC) has lamented the non-participation of the grassroots in the financial sector, saying this has affected the Gross Domestic Product (GDP) of the country.

SEC’s Acting Director-General, Ms. Mary Uduk, stated this during its financial inclusion sensitisation programme in Gwagwalada Area Council, Abuja, yesterday.

Ms. Uduk, who was represented by Head of Investor Education, SEC, Francis Okafor, said the sensitisation programme hopes to enlighten those at the grassroots, and educate them on how to invest in the Capital Market and the financial industry.

She said the target of the Commission is to ensure that by the end of this year, every area council in Abuja hss been reached.

“The last sensitisation programme for this year will be held in Abaji Area Council. We want to ensure that by the end of this year, every area council in Abuja is reached.

“If you buy shares, you are sure to get it back (dividends). Pension is not only for civil servants, but also for business people through the Micro Pension Scheme; that is why we have partnered PenCom.

“In Kano we talked about commodity ecosystem and non-interest finance. It was quite successful in Kano.

“Commodity Ecosystem is all about commodities – agricultural products. In the hay days of this country, we had things like the groundnut pyramids etc., today, those thing have died down. Beyond oil, Agriculture is a sector that can bring this country into limelight.

“We hope to establish and increase commodity exchange that will compete, if not better than what we have today in the stock exchange.

“A committee has submitted a report on the Commodity Ecosystem; we are currently at the implementation stage.

“We have partners and collaborators under financial inclusion. We have the Nigeria Deposit Insurance Commission (NDIC), National Pension Commission (PenCom), National Insurance Commission (NAICOM) etc.”

The apex regulator of the capital market encouraged participants to embrace collective investment schemes like the Esusu and others that are regulated by SEC. Explaining that the Sukuk which is a non-interest finance scheme, is not a purely religious arrangement that excludes everyone else, urging participants to engage it.

Head of Awareness Unit of Micro Pensions Department of PenCom, Mr. Emeka Onuora, said: “Micro pension is part of the Contributory Pension Scheme (CPS). It is a coverage extension of the CPS.

“We have always placed emphasis on those that are working in government offices under the CPS; this time around, we want to include individuals working on their own. We want to educate them on the need to make provisions for their retirement regardless of whether they are working on their own.

“For the Micro Pension Scheme (MPS), you have to be registered to get started just like you get registered under the CPS with Pension Fund Administrator (PFA).

“When it comes to making payments (contributions), you can use your phones, ATM cards, USSD, banks, etc.

“For the Micro Pension Scheme, you are not compelled on the amount you have to pay or the frequency of payment. You can pay in daily, weekly or monthly.

“The MPS has incentives such that you have access to a certain percentage of your contributions for everyday expenses; this amounts to 40%. The other 60% is kept for your pension and is being invested by the Pension Fund Administrator so that when you retire, you are guaranteed your pension.”

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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