Finance

Give us CVFF Disbursement Guidelines in Three Days, NIMASA Orders Banks

The bank involved in the disbursement of the $350 million funds are Polaris Bank, Zenith Bank, UBA, Union Bank and Jaiz Bank.

Published

10 months ago

January 26, 2023

Chris Emenyonu

After it was announced in September 2022 by the Minister of Transport, Engr Muazu Sambo that the Federal Government had concluded plans to approve the Cabotage Vessels Finance Fund (CVFF), the fund is ready to be disbursed.

This was gathered after the Nigerian Maritime Administration and Safety Agency (NIMASA), through its, Director General, Dr Bashir Jamoh, gave the banks involved in the disbursement of the fund 3 days to lay out guidelines for disbursement.

The bank involved in the disbursement of the $350 million funds are Polaris Bank, Zenith Bank, UBA, Union Bank and Jaiz Bank.

“We can’t start disbursement without stakeholders’ engagement, therefore, stakeholders’ engagement starts today. We are on track, we have started with the PLIs and all five of them are here today.”

“What we want them to do now is to come up with a collective decision and this cannot take more than 72 hours. They have to decide on a date because we don’t want them to come individually with their own interest rates; We want them to have a consensus and a standard template on the disbursement of funds as well as the interest rate,” the Director General explained further.

Once the banks have submitted the guidelines for disbursement, Engr Jimoh stated that beneficiaries would be invited to be informed about the necessary details for disbursement as he also elucidated on interest rates and collateral for the funds.

“I told the PLIs that on the issue of collateral, they have NIMASA money with them so all these things will be deliberated upon among themselves.

“On the interest rate, we are giving them international currency, not Nigerian currency, so they cannot start looking at Nigeria lending rate, they should look at the uniform international best practices, and the guidelines stipulate everything.”

The CVFF was introduced in 2004 by the Federal Government. It is a 2% deduction from every contract value awarded under the Cabotage regime which shipowners are expected to access for the development of indigenous shipping capacity in Nigeria and to enable them maintain existing vessels or purchase new ones.

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Banking Sector

FirstBank UK Enhances Fixed-Income Workflow Through Bloomberg Integration

Published

17 hours ago

November 29, 2023

Investors King

FirstBank UK, the UK subsidiary of First Bank Nigeria Limited, has announced its onboarding on Bloomberg’s Trade Order Management System (TOMS) to enhance its fixed-income workflow.

The integration with TOMS is expected to provide FirstBank UK with access to a comprehensive suite of data and analytics, communications, order, and execution management solutions, streamlining its fixed-income bonds business.

As a niche market-maker for its customers in Africa, FirstBank UK plays a vital role in providing market liquidity in cash bonds, particularly in Nigerian, Angolan, Egyptian, and Ghanaian Eurobonds, to manage risk and optimize its inventory.

Olukorede Adenowo, CEO-designate at FirstBank UK, expressed enthusiasm about the integration, stating, “Bloomberg TOMS provides FirstBank UK with a complete end-to-end trading workflow covering African bonds in most of our home markets. The solution enables us to focus on expanding our footprint in the African Fixed Income landscape and deliver a first-in-kind service to our customers in Africa.”

Bloomberg’s TOMS is renowned for enhancing operational efficiency across enterprises. Lisa Bravo, Global Head of Sell-Side OMS at Bloomberg, commented, “We are pleased to help FirstBank UK enhance operational efficiency across its enterprise with our award-winning sell-side order management solution TOMS.”

FirstBank UK had previously digitized its order management workflow by offering clients access to liquidity on its Eurobond Single-Dealer Platform.

The recent integration with Bloomberg TOMS aims to centralize order handling, aggregated custom analytics, and liquidity tools within a single interface, facilitating real-time access to liquidity for customers.

Robert Hagenaars, Head of Markets at FirstBank UK, highlighted the unique feature of real-time access to liquidity in their markets, providing a distinct advantage for their customers.

This move signifies FirstBank UK’s commitment to leveraging advanced technological solutions to fortify its position in the African Fixed Income market and deliver enhanced services to its clientele.

Finance

Retail Investors Could Raise $94 Billion for Climate Change Financing in Nigeria by 2030

Published

17 hours ago

November 29, 2023

Investors King

A recent report from Standard Chartered’s Sustainable Banking Report 2023 reveals that retail investors have the potential to raise $94 billion towards climate change financing in Nigeria by 2030.

The report indicates a significant interest among Nigerian investors in climate investing with 95% expressing interest and 91% aiming to increase capital flows towards climate-related initiatives, making it the highest among all markets surveyed.

The research, based on a survey of 1,800 respondents in 10 growth markets across Asia, Africa, and the Middle East, identifies a global potential of $3.4 trillion for climate investing, emphasizing the role of individual investors in combatting climate change.

In the Nigerian context, the report suggests that approximately $60 billion could be directed towards mitigation themes, with renewables, energy storage, and energy efficiency expected to attract the most capital.

Additionally, around $34 billion could be mobilized for adaptation, including resilient infrastructure, the blue economy, and food systems.

While there is a high interest in climate financing, the report notes that various barriers are impacting investor participation.

It recommends concerted efforts from financial institutions, regulators, companies, and individuals to establish a wider range of climate assets, enabling greater retail participation.

The report also emphasizes the role of digital and fintech solutions in simplifying processes for investors and calls for industry-wide alignment on reporting standards and minimum disclosure requirements to boost investor confidence.

Lanre Olajide, Head of Wealth Management and Deposits Nigeria and West Africa, commented on the report, highlighting the critical challenge of financing the collective response to climate change and the need to bridge the funding gap through retail investor capital.

He stressed the importance of improving access to solutions, harmonizing reporting standards, and measuring impact to align investments with areas of interest for a more sustainable future.

Finance

Rising Fuel Costs Drive Transportation Expenses Up by 75%

Published

2 days ago

November 28, 2023

Investors King

The recent surge in fuel prices has reverberated through the transportation sector, causing a staggering 75% increase in commuting expenses for the average Nigerian.

The National Bureau of Statistics (NBS) revealed the disconcerting statistics in its latest report, shedding light on the pervasive impact of skyrocketing petrol and diesel prices.

President Bola Tinubu’s withdrawal of the federal government’s subsidy on petrol in May, coupled with the ongoing liberalization of the diesel market, has led to an unprecedented spike in fuel prices.

The NBS’s “Transport Fare Watch for October 2023” indicates that the average retail price for Premium Motor Spirit (PMS) or petrol reached N630.63, a substantial 222.92% surge compared to October 2022.

While the Nigerian National Petroleum Company Limited (NNPC) aims to halt fuel importation by the end of 2024 with refinery rehabilitation projects underway, the current scenario presents a daunting challenge for commuters.

Zamfara state recorded the highest average retail price for petrol at N659.38, while Lagos, Oyo, and Delta states witnessed comparatively lower prices at N590.95, N592.19, and N599.38, respectively.

The North-east zone registered the highest average retail price of N644.16, contrasting with the South-west zone’s lowest price of N616.81.

The surge in fuel costs has cascaded into other modes of transportation. Commuters now face a 75% increase in bus fares within cities, intensifying the financial burden on an already strained populace.

Inter-city bus fares rose by 53.04%, exacerbating the economic challenges faced by Nigerians.

As citizens grapple with the aftermath of these price hikes, concerns linger about the broader economic implications and the potential for further adjustments in response to global market dynamics.

The transportation sector’s resilience and adaptability will be tested as commuters seek innovative solutions to navigate this challenging terrain.