- Currency-in-Circulation Rises Marginally to N2.159trn
At N2.159 trillion, currency-in-circulation, on month-on-month basis, rose by 0.3 per cent at the end of April 2019, the Central Bank of Nigeria (CBN) revealed in its economic report for May 2019.
This was in contrast to the respective decline of 3.9 per cent and four per cent at the end of the preceding month and the end of the corresponding period of 2018.
The development relative to the preceding month, according to the central bank, reflected the increase in demand deposit component.
The report showed that deposits of the federal government, banks and the private sector with the CBN, on month-on-month basis, rose, relative to the level at the end of the preceding month.
Overall, aggregate deposit at the CBN increased by 12.8 per cent to N15.746 trillion at the end of April 2019, the report showed.
“Of the total deposits at the CBN, the shares of the federal government, banks and the private sector were 42.4 per cent, 36.8 per cent and 20.8 per cent, it added.
Also, under the CBN’s Commercial Agriculture Credit Scheme, as at May 20, 2019, 21 projects repaid the sum of N2.63 billion in respect of one project as full repayment and 20 projects as steady repayments.
The repayment of N2.63 billion took the cumulative repayment under CACS from inception in 2009 to N347.69 billion.
Analysis of number of projects financed under CACS by value chain indicated that out of the 588 CACS-sponsored projects; production accounted for 61.1 per cent and dominated the activities funded, while processing accounted for 28.1 per cent.
“These were followed by storage, input supplies and marketing which accounted for 4.8 per cent, 3.4 per cent and 2.7 per cent, respectively.
“The Agricultural Credit Guarantee Scheme (ACGS) guaranteed a total of N259.1 million to 1,397 farmers in May 2019. The amount represented a decrease of 24.4 per cent and 2.7 per cent below the levels in the preceding month and the corresponding period of 2018, respectively.
“Sub-sectoral analysis showed that food crops got the largest share, amounting to N136.0 million (52.5%) guaranteed to 860 beneficiaries, followed by livestock, N44.9 million (17.3%) guaranteed to 171 beneficiaries.
“The sum of N41.8 million (16.1%) was guaranteed to cash crops sub-sector, in favour of 226 beneficiaries. Fisheries, ‘others’ and Mixed crops received N22.8 million (8.8%), N10.9 million (4.2%) and N2.8 million (1.1%), guaranteed to 77, 45 and 18 beneficiaries, respectively,” the report showed.
Analysis by State showed that 22 states and the Federal Capital Territory benefited from the scheme in May 2019, with the highest and lowest sums of N34.6 million (13.4%) and N0.1 million (0.04%) guaranteed to Ogun and Delta states, respectively.
The report indicated that the Bank continued to intervene in the foreign exchange market to further sustain the improved liquidity and relative stability in the market.
Thus, a cumulative sum of US$2.04 billion was sold by the Bank to authorised dealers in May 2019, compared with US$2.43 billion supplied in April 2019. This indicated a decline of 16.1 per cent and 42.4 per cent below the levels in the preceding month and the corresponding period of 2018, respectively.
Interbank sales fell by 10 per cent to US$0.09 billion, compared with the level in the preceding month. However, BDC sales rose by 6.3 per cent to $1.05 billion in the review month, while swaps transaction remained unchanged at the preceding month’s level of $0.01 billion
In the review month, the report showed that the average exchange rate of the naira to the US-dollar, at the inter-bank segment, was N306.95/$, representing an appreciation of 0.003 per cent and 0.4 per cent, compared with the levels in the preceding month and the corresponding period of 2018, repectively. The average rate at the BDC segment, at N360/$, depreciated by 0.3 per cent, relative to the level at the end of the preceding month, but appreciated by 0.7 per cent, relative to the level at the end of the corresponding period of 2018.
At the Investors and Exporters’ (I&E) window, the average exchange rate of the naira vis-à-vis the US dollar, at N360.74/$, appreciated by 0.01 per cent and 0.06 per cent above the levels in the preceding month and the corresponding period of 2018, respectively.
Wema Bank, MOD Launch Scheme For International Students
Wema Bank has launched an advisory and loan scheme, the Education Advisory Service, in partnership with MOD Education for young Nigerians wishing to study abroad.
Following foreign exchange control measures introduced by the government, parents and guardians have experienced difficulties paying tuition fees for their children and wards studying abroad. Some who have the money don’t know the requirements for foreign admission and waste lots of time and resources in fruitless searches.
But to help them surmount these challenges, Wema Bank has partnered with MOD Education, a professional student advisory, marketing, recruitment and placement company for the advisory services and school fees advance facility. The partnership, which was launched on Friday, April 9 at Eko Hotels, Victoria Island, will see both organizations providing innovative education advisory services and funds for international students.
Speaking about the partnership, Divisional Head, Retail Business, Wema Bank, Dotun Ifebogun, explained that the initiative would aid hundreds of thousands of Nigerians requiring advisory and financial support to pay for their wards in foreign schools.
He explained that Wema Bank does not want the aspirations of Nigerians desirous of foreign education truncated, hence the support.
“We are interested in everything that concerns our customers, and education is one of them. Some parents and guardians desire a certain quality of education for their wards outside the shores of Nigeria, and we would be able to assist them with this product. Our school fees advance loan results from the requests of parents and guardians who need to get short term financial support to meet the tuition obligation of their wards irrespective of the constant increase in fees.
“There’s nothing as heartbreaking as withdrawing a child already in a foreign university or being unable to raise the requisite forex for a child offered admission in a top-rated foreign institution of higher learning. But our school fees advance loan will take care of this problem and help secure the futures of such students – both undergraduates and postgraduates. The fact that you get counsel from the right sources at any particular time is another benefit of this product.
Also, the Managing Director, MOD Education, Michael Dosunmu, expressed gratitude to Wema Bank for the partnership. “Wema Bank has been supportive to us as a business and it was just a natural marriage. We trust the bank enough to bank with them, and our trust is enough to recommend it to others.”
NAIC Pays N1.7bn Claims to Farmers
The Nigerian Agricultural Insurance Corporation (NAIC) said it paid a total of N1.7 billion claims to over 5,000 farmers in the past two years.
NAIC, which is the only federal government owned insurance company authorised to offer agric insurance services to farmers at subsidised rate, said a breakdown of the paid claims showed that it paid N856 million to insured farmers in 2019 and N848 million in 2020.
Commenting on the development, NAIC Managing Director, Mrs. Folashade Joseph, said the claims were paid to the farmers to cover losses incurred in the course of doing business.
Joseph, enjoined agricultural investors and lending institutions to continue to partner NAIC by taking agricultural insurance cover that will enable them remain firm in business despite unforeseen circumstances from weather conditions and other risks in order to realise the food security agenda of President Muhammadu Buhari.
She said the above-mentioned amount was shared among five million farmers who suffered various setbacks in their farms as a result of natural course.
According to her, the NAIC Agric Insurance Scheme was launched in 1987 by federal government to restore the confidence and productivity of Nigerian farmers who suffered losses as a result of natural disaster such as flood, drought, pest and diseases.
The NAIC boss explained that the essence of the sensitisation campaign embarked by the corporation was to let the farmers know and understand exactly what NAIC does, the importance of insurance, and make them understand how insurance works, how they can access NAIC products and services, how to process their claims, as well as what insurance stands to do for them.
“Agribusiness is evolving fast and so many risks are being thrown up, many new participants are coming into the business of agriculture, and the risks are on the increase if you look at them across the value chain, there is no so many participants so we need to keep sensitising the farmers and let them know we are serving them, and we need to know from them how to serve them,” she explained.
Speaking further, she said, “our assurance to farmers is that when they are insured and they suffer losses covered by any of the policies they purchased, including natural disasters and whatever, they will get paid for their losses, and that is the purpose of insurance and setting up NAIC.
“Our motor is ‘Plowing the Farmer Back to Business, Plowing the Farmers into Prosperity’, and we settle claims.”
She said NAIC currently deals with thousands of farmers (Small, Medium, and Large scale farmers) across the country, adding that the corporation serves farmers with investment as little as N100, 000, and at the same time serves multinational farmers.
UBA Organises Capacity Building Forum
As part of its commitment to support the growth and sustainability of micro, small and medium-scale enterprises (MSME) in the continent, the United Bank for Africa (UBA) Plc, is set to organise the next edition of its UBA Business Series.
The UBA Business Series which is a monthly event, is an MSME Workshop as well as a capacity building initiative of the bank where business leaders and professionals share well-researched insights on best practices for running successful businesses, especially in the face of the difficult operating environment that dominates the African business landscape.
Through this initiative, UBA has been assisting with essential tips to help businesses re-examine their models and strategies and ensure that they stay afloat and remain thriving, a statement from the bank explained.
The topic for the next edition of the series is, “Managing Performance for Business Growth,” and it will be held today, via Microsoft Teams.
At this session, the Managing Director, Secure ID Limited, Mrs Kofo Akinkugbe, will be sharing useful tips and insights on the key strategies of performance management to boost business growth.
Akinkugbe is the founder of SecureID Nigeria, a MasterCard, VISA and Verve certified Smartcard Personalization Bureau and Digital Technology company. She currently serves as the Managing Director/CEO, Secure Card Manufacturing, – a Smartcard manufacturing plant producing high security identity cards and documents for the Banking, Telecoms and Public sectors across Africa and beyond.
UBA’s Head, SME Banking, Sampson Aneke said of Akinkugbe, “with her vast experience garnered over the years from various sectors, she will help business owners understand how performance management strategies can be effectively implemented to ensure business growth.”
He emphasised UBA’s commitment and deep passion for small businesses, which according to him, remains the engine of any developing economy adding, “We know small businesses are the backbone of the economy in every country. In many climes, businesses with fewer than 100 employees account for 98.2 per cent of all businesses. This no doubt captures the importance of SMEs to a thriving economy which is why UBA is committed to seeing them flourish.”
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