Connect with us

Business

Nigeria Secures World Bank Extension to Bolster MSMEs and Food Security Post-COVID

Published

on

world bank - Investors King

In a significant development aimed at fortifying Micro and Small Medium Enterprises (MSMEs) and ensuring food security in Nigeria, the World Bank has granted a crucial extension. This extension comes as the nation continues to recover from the devastating impact of the COVID-19 pandemic.

The decision highlights the importance of sustaining economic growth and safeguarding the livelihoods of vulnerable populations.

The extension was announced by the Minister of State for Budget and National Planning, Prince Clem Agba, during a ministerial townhall meeting held in Benin City. The meeting brought together beneficiaries of the NG-CARES program from Edo, Delta, Bayelsa, and Rivers States. Prince Agba emphasized the urgency of supporting MSMEs and addressing the challenges faced by the country’s food supply chains.

The COVID-19 pandemic had far-reaching effects on economies globally, and Nigeria was no exception. The NG-CARES program was introduced to mitigate the adverse consequences on the nation’s MSMEs, which are crucial drivers of employment and economic growth. The program has been instrumental in supporting the formal and informal businesses that have been disproportionately affected by the pandemic.

During the ministerial townhall meeting, Prince Agba highlighted the critical role played by NG-CARES in maintaining livelihoods and creating new job opportunities.

He stated, “The effects of COVID-19 still live with us. That is where the NG-CARES program is still very apt. So we all recall that COVID-19, which ravaged many economies in the world, had devastating consequences on the livelihoods of the poor and vulnerable individuals, formal and informal businesses, especially the Micro, Small Enterprises.”

To combat the challenges posed by the pandemic, the Nigerian government disbursed N1 billion to each state, excluding Lagos, which received N10 billion due to its higher population and economic significance. Kano State also received additional funding to address its specific needs. Furthermore, the government has been actively pursuing a $750 million loan from the World Bank to provide comprehensive support to states across three key areas essential for economic recovery.

Recognizing the need for sustained assistance, the World Bank’s extension of the NG-CARES program until June 2024 is a significant milestone for Nigeria’s post-COVID recovery. The approval was welcomed by Prince Agba, who expressed his satisfaction and confirmed that an official letter would be received from the World Bank soon. The additional year will enable the program to continue empowering MSMEs, revitalizing the nation’s food security, and ensuring a resilient supply chain that can withstand future challenges.

Moreover, in anticipation of upcoming transitions of governors across the states, the Nigerian government has proactively addressed potential cash crunch issues. Prince Agba revealed that cash advancements would be provided to all 36 states, further demonstrating the government’s commitment to restoring livelihoods, ensuring food security, and facilitating the recovery of MSMEs.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Business

Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

Published

on

Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

Continue Reading

Business

Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

Published

on

Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending