The Nigerian Export Promotion Council said on Tuesday that the effective implementation of its new strategy on non-oil export would enable the country to increase its foreign exchange reserves to $150bn within the next 10 years.
The Executive Director, NEPC, Mr. Segun Awolowo, stated this in a presentation to stakeholders on the new strategy of the commission tagged: “zero oil plan.”
The stakeholders mostly, from Kaduna State, were led to the commission by a senator from the state, Shehu Sani.
The nation’s external reserves, according to figures from the Central Bank of Nigeria, currently stand at about $26.3bn
Speaking at the event, Awolowo said the volatile nature of the global oil market had made it imperative for the country to depend less on oil revenue.
He lamented that while the country was making a huge chunk of foreign exchange from oil, such gains were usually eroded as a result of the huge import bill.
For instance, he said while the country earned about $70bn from crude oil in 2014, about $50bn was spent that same year to import various items into Nigeria.
Awolowo stated that as a result of the drop in global oil prices, the situation was worse in 2015 when the country earned about $40bn from oil but spent $50bn on importation.
He said the fall in the country’s foreign exchange earnings through importation was one of the reasons why the Central Bank of Nigeria was having difficulties in meeting forex demand by manufacturers and other businesses.
The NEPC boss said if the country could effectively key into the plan of the commission by taking advantage of the opportunities in the agricultural sector, there would not be a need to depend on oil revenue for survival.
He stated that through the zero oil plan, the commission had identified 22 priority countries as markets for Nigerian products, while 11 strategic products with high financial value had also been identified to replace oil.
These products, according to him, are palm oil, cashew, cocoa, soya beans, rubber, rice, petrochemicals, leather, ginger, cotton and Shea butter.
Awolowo said, “Nigeria is in need of an export revolution because we can no longer continue to rely on oil for our survival. We have an annual import bill of $50bn, which is financed from the proceeds of the foreign exchange generated from oil.
“In 2014, we earned $70bn from oil and paid $50bn as import bill. In 2015, we earned about $40bn and still spent about $50bn on importation; that is why we can’t continue to finance our imports. And so, we need an extra $30bn from non-oil exports to secure our future. Our objective is to increase the reserves of the country by $150bn in the next 10 years through the zero oil plan.
“This is achievable if all stakeholders collaborate with us because we want Nigeria to survive in a world where we no longer sell oil.”
Commenting, Sani said the challenges facing the economy had given an indication that this was the time for Nigerians to look inwards as the days for over-dependence on oil revenue were over.
“The days of depending on oil as a major revenue earner are over. Non-oil exports are the only path that will lead us to a sustainable economic development and guarantee for the yet unborn as oil is no longer reliable.”
He expressed optimism that if Mexico and the United Arab Emirates could reposition their economies with proceeds from the non-oil sector, Nigeria should be able to replicate such success thorough the development and promotion of its locally-made goods.
US Banks Led the Most Fined Financial Institutions in 2020
US Banks Are The Most Penalised Financial Institutions in 2020 Financial Year
Banks in the United States were the most fined financial institutions in 2020, according to the latest report from Finbold.
Finbold, a company that specialises in financial data, said three countries accounted for 97.32 percent of the total fines levied on banks in 2020.
The data revealed that United States banks are the most fined at €9.15 billion. This was followed by Australian banks with a combined €770 million, while banks in Israel came third with €762.97 million.
While the fines are likely to increase before the end of the year, the total fines levied against financial institutions globally stood at €11.61 billion as of October 22nd.
Further breakdown showed Swedish banks came fourth with €456.18 million fines while German banks that incurred a combined €169.01 million fines came fifth.
The report showed Goldman Sachs led the most fined bank with €5.26 billion for various violations of regulatory rules.
Wells Fargo came second with €2.53 billion while Westpac Bank in Australia and Hapoalim emerged third and fourth with €770 million and €762.97 million, respectively.
Other heavily fined lenders include Swedbank from Sweden fined €360 million and Germany’s Deutsche with €126.52 million fine in 2020 so far.
Speaking on banks’ fines, Oliver Scott, Chief Editor, Finbold, said “Notably, the tally of bank fines is likely to increase in the coming years as European and Asian regulators catch up with U.S peers who are considered more aggressive. However, banks are looking for means of minimizing fines. Analysts have been of the opinion that the fines could have been avoided if banks leverage technology through the deployment of perfect software.”
Guinness Nigeria Explains Reason for N12.6 Billion Loss in 2020
Guinness Nigeria Speaks on 2020 Poor Performance
Guinness Nigeria Plc has blamed the challenging business environment amid COVID-19 restrictions that led to the closure of bars, clubs, lounges and restaurants for its 2020 losses.
Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria, who spoke on the company’s performance in 2020, said the aforementioned represents a major part of the company’s consumption, adding that restriction imposed on gathering impacted the usual demands for celebratory occasions.
He explained that demand was weighed upon by a decline in consumer income, rising unemployment rate due to the shutdown of large corporations, surged in VAT and excise throughout 2020.
According to him, distribution was affected by the ban imposed on inter-state travel despite collaborating with regulatory authorities to minimize the negative impact on the company.
Here is a breakdown of the Guinness Nigeria performance in 2020 Financial Year
Guinness profit plunged by a massive 129.1 percent to -N12.6 billion in the 2020 Financial Year (FY), down from the N5.5 billion profit achieved in 2019 (FY). While the company’s gross profit nosedive by 16.9 percent from N40.13 billion posted in 2019 to N33.33 billion in 2020.
The company decline was broad-based as revenue also declined from N131.5 billion filed in 2019 to N104.4 billion in the 2020 financial year.
Accordingly, administrative cost rose from N9.9 billion in the 2019 financial year to N14.3 billion in 2020. However, the cost of sales moderated by 22 percent from N91.4 billion posted in 2019 to N71.1 billion in 2020.
Finance cost expanded from N2.6 billion in 2019 to N4.5billion in 2020 while finance income declined to N301 million in the year under review, down from N750.9 million in 2019.
Mr. Baker Magunda, said “The last quarter performance of fiscal 2020 was significantly impacted by restrictions due to COVID-19, exacerbating the already challenging economic environment. Closures of on-trade premises (bars, lounges, clubs, and dine-in restaurants), which represents the major part of the consumption occasion for our products and bans on celebratory occasions, impacted sales.
“Demand was also impacted by reduced consumer income, unemployment concerns due to the shutdown of a large number of businesses, and increases of VAT and excise throughout the year.”
Speaking further Magunda said, “Distribution was impacted by the ban of inter-state, and in some cases intra-state travel. Although, Management worked diligently with regulatory authorities to minimize the impact, this hampered our distributors’ ability to restock and have our brands available for purchase.”
Stanbic IBTC Reports N20.9 Billion Profit in the Third Quarter
Stanbic IBTC Posts N20.9 Billion Profit After Tax in the Third Quarter (Q3)
Stanbic IBTC Holdings Plc on Monday released its financial statements for the third quarter (Q3) of 2020.
In the financial results released through the Nigerian Stock Exchange (NSE), the lender generated revenue of N56.72 billion in the third quarter, below the N58.78 billion recorded in the same quarter of 2019.
Net interest income also declined slightly from N19.362 billion posted in the corresponding period of 2019 to N18.71 billion in Q3 2020.
Non-interest revenue rose to N28.66 billion in the quarter under review, up from the N27.09 billion posted in Q3 2019.
Accordingly, the total income for the period grew from N46.45 billion achieved in the third quarter of 2019 to N47.37 billion in Q3 2020. While operating expenses increased slightly from N21.52 billion in Q3 2019 to N22.31 billion in Q3 2020.
Profit before tax remained unchanged at N24.46 billion in the quarter under review when compared to the same N24.46 billion posted in the same quarter of last year.
However, profit after tax rose to N20.96 billion in the third quarter of 2020, thanks to tax differential. The lender posted N19.31 billion in the same period of 2019.
Earnings per share grew from 179 kobo in Q3 2019 to 183 kobo.
Forex3 weeks ago
Naira Improves Against Global Counterparts on Black Market
Business2 weeks ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
News4 weeks ago
Npower News: Beware of Fake Npower Employment, Ministry Warns Exited Beneficiaries
Government3 weeks ago
#Endsars: Naira Marley Calls Off Protest following Police Invitation
Business4 weeks ago
Npower News Today 2020, Over 5m Applies for Npower Batch C, Selection to be Transparent -Farouq
Cryptocurrency3 weeks ago
Interview with Paul Mak, CEO of Bonded.Finance
Government4 weeks ago
Donald Trump, Wife Test Positive for COVID-19
Cryptocurrency4 weeks ago
Financial Services and Internet Industry Lead in BitPay Payments With 23% of Companies Using Crypto