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Category: Business and Economy

NSIA invests N107b in Presidential Fertiliser Initiative
Nigeria Sovereign Investment Authority NSIA has invested N107billion in Presidential Fertiliser Initiative PFI.The agency plans to invest another N114 billion in the year on raw materials, logistics, contract blending costs by third party blenders, among others.
The FPI programme has revived 31 blending plants, increasing domestic production capacity by about 300 per cent and improving the quality of fertiliser.PFI makes high-quality fertiliser to farmers at affordable price, and to revive the ailing fertiliser blending industry to enable Nigeria achieve food security.
In three years, PFI has proven to be a legacy that has changed the agricultural and agro-business industry in the country for good. It has achieved a chunk of its mandate to become a model for the government’s intervention in critical sectors and a template for government-led import substitution.
PFI is audited by PricewaterhouseCoopers, after reviews by the Office of the Accountant-General of the Federation.
‘’Also, this cannot be possible without strict control systems which ensure that we monitor the flow of materials and funds,” said a source at the PFI.
For instance, to mitigate against pilferage under the programme, there is a joint security task force superintended by the Office of the National Security Adviser (ONSA). It monitors the movement, storage and handling of raw materials and finished products alongside appointed Collateral Managers who ensure quality, consistency in weight and mix per bag of NPK 20:10:10 to avoid adulteration.
In addition, he said, Collateral Managers reviews each blending plant to ensure that contractual standards are upheld.
Also, to prevent adulteration, the Institute for Agricultural Research (IAR), Zaria assists with periodic testing and quality assurance. IAR and more recently the International Institute of Tropical Agriculture (IITA), Ibadan conduct random tests on each batch of finished products.
The price per bag at the gate of any PFI accredited distributor is monitored and has remained N5,500 per bag since inception until recently when it was reduced by President MuhammaduBuhari by N500 per bag, to N5,000 with effect from April, as a covid-19 palliative and shortfalls in cost is paid to the NSIA.
To obviate sharp practices from any quarters, a top official stated: “Under PFI, sales collections are received through partner commercial banks of the blending plants with regularly sweeps into NSIA’s TSA accounts.
‘’Settlement of credit sales is similarly routed and terminates in a TSA account. The programme is structured such that it is impossible to make lodgments into accounts outside the designated accounts for each blending plant.”
The prudent management of the PFI has transformed the agriculture sector in obvious ways. For instance, NPK fertiliser which was sold at between N11,000 to N13,000 per 50kg bag in some places sells for N5000, making it possible for farmers to access more of the product to improve yields.
June 22, 2020
CBN slams 26 banks with N216.1bn CRR debit
Central Bank of Nigeria (CBN) on Friday withdrew a total of N216.11 billion from 26 banks in compliance with the 27.5 percent cash reserves requirement (CRR), traders said.
However, three commercial lenders, United Bank for Africa (UBA), Jaiz Bank and TAJ Bank escaped the CRR hammer as they were not debited with any amount, according to the details of the withdrawal obtained by Global Financial Digest from the market.
The debiting took place ahead of the sales of dollars by the CBN on the domestic foreign exchange market, where commercial lenders bids on behalf of their customers.
Six of the banks debited accounted for 63.52 percent of the total amount withdrawn from the banking system on Friday, with Zenith Bank vault depleted by N46.27 billion, the highest debit by the regulatory bank.
Other lenders that were debited the heaviest are Stanbic IBTC with N30 billion, Guaranty Trust Bank cough out N25 billion, First City Monument Bank (FCMB)was debited with N15 billion, Citibank N11 billion while Standard chartered bank was debited with a total of N10 billion.
The debiting from commercial lenders has become frequent in recent time as the CBN trying to curb speculation against the local currency as the country’s foreign exchange reserves continue to drop.
The forex buffer declined to $36.316 billion by June 18, after it peaked at $36.59 billion on May 29 on the inflows of dollars from International Monetary Fund (IMF) facilities and recovered loot from late SaniAbacha.
Nigeria’s banking regulator had last year raised the loan-to-deposit ratio to 65 percent in a bid to boost credit to the private sector and increase growth in Africa’s biggest economy.The CBN also raised the CRR to 27.5 percent from 22.5 percent at the end of its Monetary Policy Committee (MPC) meeting in January to curb excess liquidity in the banking system and curtail pressure on the local currency against dwindling foreign exchange reserves.
June 22, 2020
FG Commences Second Runway Project In Abuja With N1. 65bn
By Williams Anuku
Ahead of lifting ban on flight operations in Nigeria, owing to the outbreak of Covid-19, the Federal Executive Council has approved the sum of N1.659,596,908.78 billion for consultancy services for pri-contract services for the design and construction of Abuja’s second runway.
The new project has a completion period of 12 months according to the Minister of Aviation, Hadi Sirika.
While giving a breakdown of how the project would be, he said the contract was given to a consortium of consultants comprising two international and one Nigerian consultants.
He said the contract sum includes seven percent of VAT and an exchange rate for the dollar component of $360 to one.
“What I want to assure the public is that a lot of work has been done in this procurement of consultancy services. It will be fast-tracked and it is the intention of the ministry to conclude before the end of the year, so that the balance of money that we have in the budget, we can appoint a contractor and commence the construction of the second runway, we hope to conclude the second runway if awarded before the end of the life of this administration.”
The Minister of Water Resources, Suleiman Adamu, said FEC approved N8.14 billion for the reactivation and completion of Farim Ruwa multipurpose dam in Wamba local of Nasarawa State.
He said the project was started by the Nasarawa State government in 2013 but the state government in 2018, requested the federal government to take over for completion.
He said President Buhari approved the project, a multipurpose dam project with provision for water supply, irrigation and 20 megawatts hydropower station.
Suliaman said: “All we intend to do at the federal level is to complete the dam and then hope that we can get concessioner to takeover the component of the hydropower, which includes the construction of the power house, the turbines and the transmission lines. The contract sum is N8.14 billion inclusive of all taxes with the completion period of 24 months.
It comprises of the completion of the dam embankment, spring lay and outlet works for the water supply and hydropower component, 20 kilometers of access road and rehabilitation of some service quarters”.
June 3, 2020
Global Finance 2020: Zenith Bank emerges best bank in Nigeria
Zenith Bank Plc has emerged as the Best Bank in Nigeria in the recently released Global Finance Magazine World’s Best Banks Awards 2020.
The awards, published in the May 2020 edition of the Global Finance Magazine, was based on the performances of the banks in their respective regions and countries over the period from Jan. 1 to Dec. 31, 2019.
Global Finance’s “World’s Best Banks Awards” are recognised amongst the world’s most influential banking/finance and corporate professionals as the most coveted and credible awards in the banking industry.
Winners were chosen in more than 150 countries across Africa, Asia-Pacific, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.
Founded in 1987, Global Finance regularly selects the top performers among banks and other providers of financial services and the awards have become a trusted standard of excellence for the global financial community.
Mr Ebenezer Onyeagwu, the bank’s Group Managing Director/Chief Executive, said in a statement on Monday that the award was a clear demonstration of the bank’s market leadership.
“This award is a clear demonstration of the bank’s market leadership, occasioned by our superior product offerings, best-in-class service and top-of-the-range technology which create value for our teeming customers.
“Zenith Bank has clearly distinguished itself in the Nigerian financial services industry through superior service quality, unique customer experience and sound financial indices.
“The bank, with a knack for setting the pace and raising benchmarks, is a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels,” Onyeagwu said.
Zenith Bank recently announced an impressive result for the year ended Dec. 31, 2019, with profit after tax of N208.8 billion, achieving the feat as the first Nigerian Bank to cross the N200 billion mark.
Zenith Bank was ranked as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Best Digital Bank in Nigeria 2019 by Agusto & Co.
The bank was also voted as Bank of the Year and Best Bank in Retail Banking at the 2019 BusinessDay Banks and other Financial Institutions (BAFI) Awards.
June 1, 2020
Half of Facebook employees to work remotely in 10 years – Zuckerberg
Facebook’s founder and chief executive, Mark Zuckerberg, says he expects the coronavirus pandemic will have a long-lasting impact on working practices.
Zuckerberg expects that in ten years, about half of the social network company’s employees will be working remotely, he said in an interview with technology news site The Verge.
He emphasised that the 50 per cent figure was his estimate and not an official announcement.
According to a survey of Facebook employees, one in five expressed strong support for working from home permanently, while a further 20 per cent expressed “some interest”.
However, 40 per cent said this would not be practical due to the nature of their jobs.
Zuckerberg expects that in the future, more employees will hired to work from home from the beginning of their contracts.
Other major tech firms, including Twitter, had previously announced their employees could continue to work from home even after social distancing restrictions brought in during the pandemic eased.
Prior to the pandemic, the focus of big U.S. tech companies had been to have all employees working together at huge headquarters, some including Facebook, offering employees bonuses to live nearby.
Facebook had expanded its Menlo Park headquarters with a huge hangar-style campus built by star architect Frank Gehry. (dpa/NAN)
May 22, 2020
NSE moves 211.62m shares worth N2.23bn in bullish trading
Investors on the Nigerian Stock Exchange (NSE) on Friday staked N2.23 billion on 211.62 million shares transacted in 3,957 deals.
This was in contrast with a turnover of 201.48 million shares valued at N3.36 billion transacted in 3,381 deals on Thursday, indicating an increase of 5.03 per cent.
A breakdown of the activity chart indicated that the banking stocks remained the toast of investors.
Specifically, Guaranty Trust Bank was the most active stock, accounting for 51.39 million shares worth N977.59 million.
FBN Holdings came second transacting 25.72 million shares valued at N111.97 million, while Access Bank traded 22.51 million shares worth N140.62 million.
FTN Cocoa sold 16.96 million shares valued at N3.39 million, while United Bank for Africa traded 12.02 million shares worth N71.56 million.
The All-Share Index rose by 128.59 points or 0.57 per cent to 22,599.38 from 22,470.79 posted on Thursday.
Also, the market capitalisation which opened at N11.710 trillion appreciated by N67 billion or 0.57 per cent to close at N11.777 trillion.
MTN Nigeria led the gainers’ table, increasing by N4 to close at N104 per share.
Cadbury followed with a gain of 55k to close at N7.45, while Guaranty Trust Bank added 40k to close at N19.30 per share.
Union Bank of Nigeria garnered 30k to close at N6.80, while UPDC REITS also rose by 30k to close at N3.40 per share.
On the other hand, CAP recorded the highest price loss, dropping by N2.30 to close at N20.90 per share.
Dangote Cement trailed with N1.50 to close at N130, while UACN was down by 55k to close at N6.20 per share.
C &I Leasing dipped 50k to close at N5.10, while Lafarge Africa depreciated by 20k to close at N11.50 per share. (NAN)
April 24, 2020
Lockdown: Hotels close shop in Port Harcourt
Some hotels in Port Harcourt have closed shop, following the outbreak of Coronavirus which has resulted in lockdown in Rivers.
Visits by a Correspondent of the News Agency of Nigeria (NAN) to some parts of the city on Tuesday showed that many hotels were under lock and key.
NAN recalls that the outbreak of COVID-19 in the state had resulted in closure of markets, schools, drinking joints, air traffic as well as the state borders.
When NAN visited Echelon Height Hotel on Elekohia Road, which used to be a beehive of activities, it was firmed locked, with only security men seen manning the entrance.
Other hotels in the city were also not open for business, while the usual hustle and bustle around them had vanished.
Also, the ever-busy Presidential Hotel, which used to play host to different categories of guests and events, was enveloped with unusual calm, as no activity was taking place there.
NAN also observed that the few hotels, which opened for business, witnessed low patronage, as their bars and swimming pools were without customers.
A Port Harcourt-based economist, Mr Ugochukwu Nyenke, said that the outbreak of COVID-19 had been taking its toll on the hotel business in the state capital.
According to him, the closure of borders and the ban on inter-state movement were negative signals to the hospitality industry.
“The implication is that people will not come to the city, while those in the city have remained in their homes. And so, people will hardly need accommodation in any hotel.
“The clubs and bars are places that require close contacts, and this is really not an auspicious time for such businesses to boom,” he said. (NAN)
April 15, 2020
COVID-19: IMF calls for multilateral cooperation on medicine, essential supplies
The International Monetary Fund (IMF) has called for multilateral cooperation on medicines and other essential supplies to help tame the COVID-19 pandemic.
The IMF made the call in its April 2020 World Economic Outlook released on Tuesday.
The IMF explained that addressing the coronavirus pandemic was therefore required significant multilateral cooperation, including avoiding trade restrictions particularly on medicines and other essential supplies with a view to help financially constrained countries with limited health care capacity.
It stated that such cooperation would help by providing such countries equipment and medical expertise financed through grants and zero-interest emergency loans.
“Countries confronting the twin crises of health and external funding shocks, for example, those reliant on external financing, or commodity exporters dealing with the plunge in commodity prices may additionally need bilateral or multilateral assistance to ensure that health care spending is not compromised in their difficult adjustment process.
“The IMF, with one trillion dollars in available resources, is actively supporting vulnerable countries through various lending facilities.
“The recent doubling of access limits of the IMF’s emergency financing facilities will allow the IMF to meet an expected demand of 100 billion dollars in emergency financing, provided through the Rapid Credit Facility and the Rapid Financing Instrument, of which the former is only for low-income countries.
“The Catastrophe Containment and Relief Trust can currently provide about 500 million dollars in grant-based debt service relief, including the recent 185 million dollars pledge by the UK and 100 million dollars provided by Japan as immediately available resources.
“Official bilateral creditors have been called upon by the IMF managing director and the World Bank Group president to suspend debt repayment from International Development Association countries that is, those with gross national income per capita below 1,175 dollars in 2020 that request forbearance.
“This would help with their immediate liquidity needs to address the challenges of the pandemic. Policies for the Recovery Phase Once the pandemic abates and containment measures are lifted, the policy focus will need to shift to rapidly moving to recovery, while scaling back special targeted measures deployed during the shutdown and ensuring debt overhangs do not weigh on economic activity.
“This will require efforts at the national level and continued strong multilateral cooperation. There is still substantial uncertainty on how long it will take for economic activity to normalise and the policy challenges will be much more severe in a scenario with more protracted dislocation from the pandemic” it explained.
The report indicated that securing a swift recovery, the lifting of containment measures was likely to be gradual, and even after containment measures were unwounded, economic activity might take a while to normalise.
It added that uncertainty about contagion could lead to persistent voluntary social distancing and subdued consumer demand for services and firms might only slowly start hiring workers and expanding payroll. (NAN)
April 15, 2020
CBN records $3.5bn Currency outflows in March
The Central Bank of Nigeria has recorded a total Foreign Currency outflows of $3.5 billion during the month of March.
The amount represent -3per cent onth on Month, as against a meagre $335 million foreign inflows.
In its recent monthly Economic insight, NOVA Merchant Bank observed that activities at Open Market Operation auctions in March depicted limited foreign portfolio participation.
The Nova report observed that the apex bank recorded its highest monthly intervention sales at the Investors and Exporters Window of the foreign exchange market in March, with the gross external reserve depleting by $1.0 billion to adjusted level of $34.0 billion.
April 13, 2020
NSC facilitates Cargo evacuation throughout Easter holidays
The Nigerian Shippers Council said 24 hour seaport operations were sustained all through the Easter holidays and the weekend.
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The Council’s Executive Secretary, Hassan Bello while touring terminals to assess the evacuation process,
noted that water barges and rail are been deployed as mode of transporting cargoes out of the seaports.

He explained that vessels have been calling on the nation’s ports with cargoes and that for a quick turn around time to be achieved, goods must be evacuated speedily.
The Nigerian Shippers Council had earlier underscored the need for consignees to take delivery of cargoes during the Easter holiday to decongest the seaports and ensure free flow of goods.
April 13, 2020