- GText to Partner World Bank on SME Financing
GText Group has announced plans to partner the World Bank to provide loans and finance to the Small and Medium Enterprises, as part of its corporate social responsibility.
The Group Chief Executive Officer, GText, Mr. Stephen Akintayo, while speaking at a press conference in Lagos on Wednesday, stated that the partnership was in a bid to promote the spirit of entrepreneurship in Nigeria, particularly among youths.
Akintayo who disclosed that the company planned go public soon, said the partnership with the World Bank to fund the SMEs would help promote the GText brand.
He said the group planned to help the SMEs grow so they could create more jobs for the unemployed and set an example for other companies.
According to him, if the SMEs have access to the right amount of finance, all sectors of the economy will gradually become developed.
He said, “Since the group became registered in the United States, the United Kingdom, and the Middle East, a lot of job opportunities have been created, and many more employed. If I was provided with access to finance a long time ago, the company would have grown beyond its current level.”
Also speaking, the Group Business Development Manager, GText, Mr. Ikechukwu Ohansen, stated that since the group had become global and World Bank-accredited, plans were also being made to partner other financial institutions to provide funds for the SMEs.
He said though the group was currently funding the SMEs single-handedly, it was looking to build relationships with investors to reduce the burden.
He said the group aimed to expand and build the brand by investing in other people’s businesses.
Banks to Place Chronic Loan Defaulters on Watch List
The Central Bank of Nigeria on Monday released the guidelines aimed at reducing non-performing loans in the banking sector and monitoring chronic loan defaulters.
The CBN released the guidelines through a circular to all banks and other financial institutions, with the title ‘Operational guidelines on global standing instruction – Individuals.
The circular, which was signed by the Director, Financial Policy and Regulation Department, CBN, said, “The Bankers’ Committee, at its meeting on February 18, 2020, approved the go-live on the Global Standing Instruction, which aimed at facilitating an improved credit repayment culture; reducing non-performing loans in the Nigerian banking system; and watch-listing consistent loan defaulters.”
The apex bank said it collaborated with stakeholders to develop necessary protocols to facilitate a seamless implementation of the GSI process, including eligible loans granted from August 28, 2019.
It stated that the guidelines would take effect from August 1, 2020.
Under the guidelines, creditor bank would ensure that borrowers were properly educated about the GSI mandate and its implications, and enshrine same in their loan application process.
The banks would review and validate the GSI mandate instrument prior to loan disbursement.
It added that they would indemnify the Nigeria Inter-Bank Settlement System and other participating financial institutions from all liabilities that may arise from inappropriate use of the GSI infrastructure.
The CBN stated that the banks would retain copies of physical or digital version of the executed GSI mandate and provide same when required.
The CBN added that the participating financial institutions must execute the GSI mandate agreement with NIBSS.
They must also ensure all qualifying accounts were properly maintained and visible to NIBSS on the industry customer accounts database or by any other service created or provisioned for this purpose.
The guidelines stated that they must “ensure that accounts in NIBSS’ ICAD are correctly tagged with correct Bank Verification Number, and ensure and maintain connectivity to the Nigeria Central Switch.”
The CBN added that they must ‘honour all balance
Central Bank Restricts Maize/Corn Importation
CBN Adds Maize/Corn to Foreign Exchange Restriction List
In a bid to stimulate local production and support new job creation, the Central Bank of Nigeria on Monday said it has added maize/corn to the foreign exchange restriction list.
In a statement signed by DR. O.S. Nnaji, director trade and exchange department, and released on the apex bank’s website, the central bank said authorised dealers are directed to discontinue the processing of Forms M for the importation of Maize/Corn with immediate effect.
This means while importers of maize/corn are not restricted from importing the commodity, importers can no longer access forex through the central bank rather they will now have to source for their own foreign exchange from the black market or bureau de change operators.
Accordingly, the central bank said authorised forex dealers are required to submit all registered Forms M for the importation of Maize/Corn before the closing of business on Wednesday for processing.
“All Authorised Dealers are hereby requested to submit the list of Forms M already registered for the importation of Maize/Corn using the attached format on or before the close of business on Wednesday, July 15, 2020.”
The CBN continues to add to its growing forex restriction list to further ease pressure on the dwindling foreign reserves, stimulate local production and boost new job creation.
This is coming a few days after Nigerian Naira plunged to over three years’ low of N465 against the United States dollar on the black market and central bank’s official rate was adjusted to N380 following the inability of the apex bank to sustain N360 per US dollar rate.
CBN, Banks to Spend N25 Billion Renovating National Theatre
Bankers’ Committee, CBN to Spend About N25bn on National Theatre
The Central Bank of Nigeria and the Bankers’ Committee on Sunday said they plan to spend as much as N25 billion on Nigeria Creative Centre at the National Theatre, Lagos and three other states in Nigeria.
Godwin Emefiele, the Governor of the Central Bank of Nigeria, who spoke during the official handing over of the National Theatre to the Bankers’ Committee for renovation and upgrade on Sunday, thanked President Buhari for the approval and eventual handing over of properties Bankers’ Committee.
He said: “Given our dependence on crude oil as a major source of government revenue, as well as for our foreign exchange earnings, these challenges have served to reinforce the need for stakeholders to promote policies and programmes that will enable greater diversification of the Nigerian economy.
“A diversified economy that supports increased productivity in agriculture and manufacturing sectors, while harnessing the talents of our youths in the creative industries will lead to the build-up of a more resilient economy, which is better able to withstand external shocks, while creating wealth and jobs for our growing population,” he said.
The CBN Governor, who also doubled as the Chairman of the Bankers’ Committee, said in about 18 months, the Bankers’ Committee would have transformed the facility into Nigeria’s creative industrial centre.
“The creative centre, which comprises music, movies, fashion and ICT, can be a key source of growth for our economy creating up to one million jobs for the country’s teeming youths,” he said, adding that it would also aid the objective of reducing the country’s dependence on revenue from crude oil.
Emefiele explained: “India for example in 2018 generated over $240 billion from exports of IT, movies, music and fashion related goods and services. This amount is over five times our annual earnings from the sale of crude oil. With our human capital resources and an enabling environment that will help harness the creative talents of our youths, Nigeria has the potential to earn over $20 billion annually from the creative industry.
“With the growing demand for Nigerian music, movies and fashion, across Africa and in various parts of the globe, our creative industries are spurring innovation, creating jobs, and helping to shape perceptions of Nigeria, as a nation with a strong spirit of creativity and ingenuity.
“We must do more to encourage the innovative works of these young talented Nigerians as they can make significant contributions to the growth and development of our country.
“Second, given our growing population of close to 200 million people, out of which 60 per cent are under the age of 35, it is imperative that we strive to create opportunities that will keep our youths engaged, as it would portend great dangers for the progress of our nation if we allow these talents go to waste.”
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