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Nigeria, Afrexim Hold Talks for Increased Shareholding

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  • Nigeria, Afrexim Hold Talks for Increased Shareholding

The Federal Government and the management of Afrexim Bank on Wednesday held talks on increasing Nigeria’s share in the pan-African export import bank.

The Minister of Finance, Zainab Ahmed, who disclosed this in a statement made available to our correspondent in Abuja on Wednesday, also indicated that the government was holding talks with the bank on some key projects.

She said that the bank’s largest portfolio was in Nigeria, adding that it was important to harness this by increasing the country’s shareholding in the bank.

The statement read in part, “We have met with a delegation of Afrexim Bank from Cairo. Nigeria is a major shareholder in the bank. Part of what we have discussed is the possibility of increasing our shareholding and we discussed some of the projects and programmes that Afrexim is supporting in Nigeria.

“Afrexim has a very large portfolio in Nigeria. About 40 per cent of the bank’s portfolio is in Nigeria — support to the government but largely to the private sector.

“We have the need to increase our shareholding in the bank because there is a lot of value that we are getting from Afrexim Bank. We discussed the setting up a medical park in the FCT, which is a discussion that has been going on for quite a long time. There was also a discussion on the establishment of quality assurance centres in Ogun and other parts of the country.

“We also discussed the setting up of industrial parks in collaboration with the Federal Ministry of Industry, Trade and Investment in three centres- Lekki, Kano and Kaduna.”

Ahmed also said, “Trade agreements are not things that the government will just enter into without due consultations with stakeholders in the private sector.

“We need to discuss with the private sector and agree with operators in that sector before we join. The discussions have been going on but we have not reached a consensus. We need to reach a consensus before we agree. That discussion is being driven by the Ministry of Industry, Trade and Investment.”

Speaking on the discussion, the Afrexim Bank President, Dr Benedict Oramah said, “Nigeria is still a major shareholder in the bank, although of recent, it has fallen back in terms of its relative position. That is why we have had this discussion with the minister of finance to see how Nigeria could return to the position it was.

“We have got assurances that the government would look at it and we hope that Nigeria’s holdings would come to the levels that would reflect the size of the Nigerian economy.

“In terms of business in Nigeria, we have exposure of more than $3.2bn. We are supporting virtually all the banks in Nigeria in terms of lines of credit to be able to do export and import as well as supporting the SMEs.”

Also speaking, the Minister of Budget and National Planning, Senator Udo Udoma, put the capital release at N460bn.

He said, “The amount of capital releases as of today is N460bn. We just need a resolution of the National Assembly on the borrowing plan then we can fund it even more. We are spending money on N-Power and school feeding.”

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

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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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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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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Finance

FMDQ Approves Valency Agro’s N5.12bn Commercial Paper

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FMDQ

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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