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NIPOST Set to Deliver 2000 Outlets for National MFB

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NIPOST
  • NIPOST Set to Deliver 2000 Outlets for National MFB

As part of efforts to boost financial inclusion in the country, the Nigerian Postal Service (NIPOST) has said it will be refurbishing over 2000 of its outlets across the country for the proposed NIRSAL Microfinance Bank (NMFB).

According to the Postmaster General of the country, Adebisi Adegbuyi, 106 NIPOST outlets have already been selected for the first phase of the rollout of the NMFB across the country. He said this at a two-day seminar organised by the Central Bank of Nigeria (CBN) for financial journalists, that took place in Gombe.

Adegbuyi, who was represented by NIPOST Director, Finance and Investment, Usman Shaba, noted that the move was in line with the drive for financial inclusion.

He said: “The investments made by the government in postal outlets all over the federation in time past would now be put to use to reach the unbanked.

“A lot of Nigerians are unbanked and these unbanked people are mostly in the rural communities and these postal outlets will be leveraged upon to promote financial inclusion in the unbanked communities.

“So what NIPOST is doing essentially is to improve on these outlets. over 2000 of them nationwide to make available as outlets for the commercial banks and in particular the NMFB.”

He added: “Prior to this, the CBN having looked at the infrastructural spread of NIPOST have granted NIPOST a super-agent licence which makes it possible for NIPOST to render financial services on behalf of virtually all the commercial banks in Nigeria.

“NIPOST is very ready to deliver the 106 outlets that the NMFB has targeted for take-off. NIPOST officials along with NMFB and CBN have gone through all the regions of the country and the reason why we even selected the 106 is to make sure that each of the outlet we selected are good enough and ready,” he stated.

On his part, the CBN Director, Corporate Communications Department, Isaac Okorafor, noted that the agreement with NIPOST and the Bankers’ Committee was to ensure that credit gets to micro-businesses and to take financial inclusion to the rural areas.

He said the CBN under Godwin Emefiele, was committed to ensuring that a greater number of Nigerians are brought into the banking system.

He added: “Our shared agent network which aims at mobilising 500,000 agents across the country, our payment system, the mobile banking, the mobile money, the MFB all of them come together to ensure that jobs are created and poverty is alleviated and more and more people are moved from the informal sector through financial inclusion.

“So we are working with NIPOST that has the infrastructure, we are working with the Bankers’ Committee that has intentionally and willingly provided part of their profit and unleashing these resources on all those people at the base of the pyramid.”

On his part, the Group Head, Commercial Banking at Access Bank, Femi Oluwatosin, who represented the Managing Director and Chief Executive of the bank, Mr. Herbert Wigwe said: “The partnership coming from the banks is to facilitate the movement of credit. The assurance that we have this time, that this financing will reach to the grassroots is the fact that the CBN has been saddled with the responsibility to open branches aggressive branch opening so that this fund can be accessible through the MFB that has been created by the bankers’ committee.”

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.

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Livestock Feeds Appoints Adegboyega Adedeji as Substantive Managing Director

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Adegboyega Adedeji is the Substantive Managing Director

Livestock Feeds Plc on Monday announced it has appointed Mr. Adegboyega Adedeji as the company’s substantive Managing Director, effective from 2nd October 2020.

In a statement released on the Nigerian Stock Exchange (NSE), the company said Mr. Adedeji was the Acting Managing Director of the Company before he was appointed as the Managing Director.

It added that Mr. Adedeji was “formerly the General Manager, Sales and Operations responsible for all sales activities and the strategic development of the Company’s markets, along with new products portfolio generation and development.”

He graduated from the famous Obafemi Awolowo University, Ile-Ife in 1996 and had his MBA from the University of Roehampton, UK in 2018.

He worked with Grand Cereals Limited as Regional Sales Manager before becoming their procurement manager. He moved to UACN Plc in 2007 as the Training Services Manager, a position held till September 2009 before he was transferred to UAC Restaurant.

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COVID-19 to Plunge Global Consumer Spending by 8.6 % in 2020

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Global Consumer Spending to Drop by 8.6 Percent in 2020

The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.

According to data presented by Stock Apps, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.

$4.2trn Drop in Spending Amid COVID-19 Crisis

Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.

Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.

However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.

Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.

60% of Consumers Changed their Shopping Behaviour

The McKinsey&Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lockdowns, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.

Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.

However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.

The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.

In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset.

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Survival Fund: Buhari Commences Disbursement of N75 Billion Support Fund

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President Muhammadu Buhari

FG to Commence Disbursement of N75 Billion Survival Fund to MSMEs

The Federal Government to commence the disbursement of N75 billion COVID-19 support fund to successful Micro, Small and Medium Enterprises (MSMEs) that applied for financial support under the National MSME Survival Fund this week.

On September 10, 2020, the Federal Government announced the introduction of two financial support schemes to support around 1.7 million small businesses with N75 billion.

According to Tola Adekunle, the Special Assistant to the President on MSMEs, Office of the Vice President, who doubles as Project Coordinator, Survival Funds Scheme, payment disbursement to some of the beneficiaries of the schemes would commence this week.

He said, “Presently we are doing it in batches of 12 states to be able to monitor the scheme and as we speak now 12 states are ready. We are hoping that by the end of this week, we will be able to pay 12 states.

“We are starting with the artisans and it is 4,500 persons per state, plus 4,500 for transporters, bringing it to about 9,000 for each state. Right now, we have about 54,000 from 12 states.”

Asked by journalists when those on payroll support would start receiving payments, he said “By the end of this month.

“We want to ensure that the staff start getting their salaries and same for the second and third month.

Adekunle explained that payroll support which was introduced under the survival fund to help businesses that employed between 10 to 50 people, will ensure 10 of the 50 employees are paid between N30,000 to N50,000 depending on their salaries. Payment, he said would commence by the ending of this month.

He said, “We now pay 10 of those people from among the 50 employees and we pay them between N30,000 and N50,000.

“But the minimum we pay is three staffs for three months to support their businesses and to ensure that we are helping businesses to augment their salaries.”

He, however, said the program ended on October 15 but states that were yet to meet their quotas were demanding extension. A demand he said was valid given that only less than 20 states have met their quotas.

In my own opinion, it is valid but the decision lies in the hands of the committee and the project coordinator so I have to convince them based on data analysis,” he said.

Speaking on the total number of applicants for the payroll support, Adekunle said, “As at the day it closed, we had about 432,000 businesses that had applied. However, we have shortlisted less than 70,000 businesses that qualify and meet the requirements.”

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