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Investors Reap N4.67bn from Nigeria Infrastructure Debt Fund

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Foreign investment inflow
  • Investors Reap N4.67bn from Nigeria Infrastructure Debt Fund

Investors in the Nigeria Infrastructure Debt Fund have gained N4.67bn from their investments in two years.

Latest data obtained from Chapel Hill Denham Management Limited revealed that with the second quarter distribution, the fund’s total distribution to unit holders hit N4.67bn in cash at the rate of N33.86 per unit.

It said the fund, which is in its second year, delivered over 55 per cent total returns to its unit holders over the period and announced its eight consecutive quarterly distribution of N4.34 per unit for the second quarter of 2019.

The Chief Executive Officer, Nigeria Infrastructure Debt Fund, Anshul Rai, said in a statement that in the short period of two years since its inception, the NIDF emerged as the largest provider of long-term naira financing for commercially-viable infrastructure projects across Nigeria.

Rai stated that the fund’s current portfolio stood at N31bn ($100m), which included 12 infrastructure loans with 20 underlying projects and businesses.

He said the projects were in multiple sectors, including power generation, energy infrastructure, transportation, telecom and social infrastructure, and were spread across the country.

Rai said, “Lack of availability of long-term funding in domestic currency has been the bane of infrastructure development across Africa, including Nigeria.

“Foreign currency financing, particularly debt financing, creates unsustainable mismatches between the currency of revenue and the currency of financing, leading to both higher costs to end-users and also macroeconomic risks for the country.

“The NIDF has successfully demonstrated the strength of its model, which is mobilising domestic savings for funding infrastructure, and how generating solid financial returns can go hand-in-hand with positive development outcomes.”

He stated that in 2018, NIDF-funded projects achieved carbon dioxide reduction of more than 500,000 tonnes and diverted nearly 10 million standard cubic meters of flared natural gas to commercial use in the country.

Rai said the NIDF model was not only highly-scalable but also replicable across other emerging markets.

According to him, the infrastructure investment gap for markets over the next decade is huge, with Africa itself requiring over a $ 1tn.

Chapel Hill Denham said domestic savings had to play a much greater role in bridging the gap than had traditionally been the case.

It said in a note, “This can be done only if the investors are offered superior risk-adjusted returns, coupled with low intermediation costs, liquidity and governance transparency, which are the distinguishing features of NIDF.

“It is a case study on how a capital markets-led and scalable structure could be deployed widely in Africa and emerging markets more generally.”

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

TAJBank Deploys NQR Solution To Ease Customer Transactions

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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.

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Finance

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

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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.

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Finance

Nirsal: CBN Reopens Application for N50 Billion COVID-19 Loan for Households and Small Businesses

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secured loan

The Central Bank of Nigeria has started receiving fresh applications for N50 billion COVID-19 loan for small businesses and households affected by the pandemic.

The CBN through Nirsal Microfinance Bank announced it has reopened its portal for households and Micro Small and Medium Enterprises (SMEs) affected by COVID-19 to access up to N25 million.

Bashir Ahmad, the Personal Assistant to President Muhammadu Buhari on New Media, disclosed this on March 10, 2021 via his Twitter handle.

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