Connect with us

Finance

Nigeria Spends $357.26m Servicing External Debt in Q1, 2019

Published

on

Global debt
  • Nigeria Spends $357.26m Servicing External Debt in Q1, 2019

The Debt Management Office (DMO) has disclosed that the Federal Government spent $357.26 million servicing external debt in the first quarter of 2019.

DMO data showed a total of $210.76 million was spent servicing commercial loans in the first quarter, accounting for 58.99 percent of the total cost incurred.

The commercial loans include Eurobonds with maturity ranging from 2018 to 2038.

while another $79.4 million or 22.22 percent was spent servicing multilateral external loans.

Multilateral loans include funds disbursed by the International Bank of Reconstruction and Development and the International Development Association (both two arms of the World Bank), the African Development Bank and the Islamic Development Bank.

The remaining $67.1 million was spent on bilateral loans such as the one from the Export-Import Bank of China used in funding the Nigerian Communications Satellite project and the Nigeria National Public Security Communications Systems project.

Nigeria’s rising debt amid huge cost of debt servicing remained a source of concern despite the government saying Nigeria’s debt-to-GDP ratio is one of the lowest at slightly above 19 percent.

However, the ratio of ‘debt servicing cost’ to budget remained an issue at 25.59 percent.

The Federal Government had budgeted N2.26 trillion for debt servicing in the approved 2019 budget (N8.83 trillion), a 12.44 percent higher than the N2.01 trillion allocated in 2018. While revenue generation was estimated to increase by just 0.1 percent in 2019, suggesting that even though loans and cost of debt servicing continued to rise, the very reason for those loans — to up revenue generation and increase economic growth — remains weak or at a ground level.

It should also be noted that the larger part of the remaining amount is to be spent on recurrent expenditure with just about N2 trillion appropriated for capital expenditure in the current fiscal year.

Also, the inability to enhance revenue generation substantially means the Federal Government, like last year, may not fully implement the 2019 budget. Leaving projects uncompleted with a carried over recurrent expenditure for the 2020 fiscal year.

Poor infrastructure development has limited economic productivity as new job creation is almost not existing with a high inflation rate and unimpressive economic policy.

Nigeria’s total debt rose by N560 billion during the first quarter to N24.9 trillion.

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.

Banking Sector

BoI Grows Assets by 78.8% to N1.86 Trillion

Published

on

boi

The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.

A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.

The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.

It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.

The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.

Continue Reading

Banking Sector

TAJBank Deploys NQR Solution To Ease Customer Transactions

Published

on

TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.

The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.

A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.

“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.

This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.

In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.

Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.

The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.

Continue Reading

Finance

African Development Bank’s First Virtual Business Opportunities Seminar of 2021, Draws 450 Global Partners and Suppliers

Published

on

AfDB

The African Development Bank hosted its first virtual business opportunities seminar (BOS) of 2021 on 6 and 7 April.

The BOS seminars offer a one-stop shop for companies, civil contractors, manufacturers, consultants, and suppliers from the Bank Group’s regional and non-regional members seeking to provide goods and services to projects or to the Bank.

Held virtually as a result of the ongoing Covid-19 pandemic, delegates were informed about the Bank’s strategy for supporting economic growth, its priority areas, rules and procedures for project and corporate procurement, and ongoing public and private sector operations.

During the sessions staff discussed the sectors that offer opportunities for partners and suppliers: climate change; infrastructure, cities and urban development; industries and trade; finance and SMEs; agriculture; health, human capital, youth, and skills development.

“The Bank’s 2021 Business Opportunities Seminar was an impressive learning experience and an open door to interact virtually with different experts and gain insights into best practices and directions for conducting effective business approaches within the Bank,” said David Andrés Rojas Mejía, Senior Business Development Specialist at Catalonia Trade and Investment Promotion Agency.

Private sector partners contributed richly to the discussion, sharing their experience around partnering and contracting with the Bank. They included Kwame Boate, country director of TechnoServe Inc., (Ghana) and Cletus Kayenwee of the Rural Enterprises Program at the Ghanaian Ministry of Trade, who shared their experience contracting with the Bank on Ghana’s “One District One Factory” Enable Youth Program. The program aims to build the entrepreneurial capacity of graduate youth. Participants also heard from Abdelillah Zenjari, Deputy General Director of TEKCIM. He shared his experience partnering and obtaining a loan of €45 million to build a cement factory with a capacity of 1.4 million tons in the region of d’El Jadida in Morocco.

Over the years, the seminars have hosted approximately 2,500 delegates from 55 countries, with an average of 75% of delegates from non-regional member countries and 90% from the private sector.

For the Bank, the seminars increase interest in Bank-financed projects and enhance competition, thereby promoting higher-quality offers that deliver optimal value for money for its regional member countries.

“The sessions have also helped me to understand how to find opportunities for my firm by being better able to navigate your procurement framework and processes,” said Dede Watkin, Business Development Manager at Beale &Co, a participant.

Continue Reading

Trending