Economy
N50bn alleged fraud: NEXIM says money used for 62 projects, others
The Nigerian Export-Import Bank (NEXIM), on Tuesday, clarified the alleged mismanagement of N50 billion Export Development Fund released by the Central Bank of Nigeria (CBN), saying that 62 projects were supported using the intervention.
Mr Tayo Omidiji, Head of Strategy and Communications Department, NEXIM Bank, made the clarification in a statement issued in Abuja.
Omidiji said that the fund which was wrongly referred to as Rediscounting and Refinancing Facility by the petitioners was to support export-oriented projects toward achieving the Zero Oil Plan of the Federal Government.
According to him, following the release of the fund in February 2018, a total of 62 projects have been supported with a total amount of N52.9 billion disbursed.
“The projects supported are reputable exporting companies with verifiable track records and many of them ranking highly on the list of Top 100 exporters published quarterly by the CBN.
He said that the clarification was to explain a report trending “that a petition has been forwarded to the Economic and Financial Crimes Commission, calling for a probe of the Managing Director of NEXIM Bank, Mr Abba Bello, over mismanagement of the fund’’.
He further said that the loans granted were adequately secured, mostly with bank guarantees and were all performing, with export proceeds received from 2019 to date.
He said that the export proceeds received from 2019 till date amounted to 90.1 million dollars and 80,000, Euros translating to N34.8 billion, from projects that had so far repatriated their revenues.
“In addition, an estimated 8,062 jobs have been created and/or sustained as a result of the intervention,’’ he said.
Omidiji, however, noted that the immediate focus of the Bello-led executive management was to retool the Bank and return the institution to its pride of place.
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He said: “it is pertinent to note that within three years of his resumption in office, the fortunes of the Bank have remarkably improved, with profits of N2.03 billion achieved in 2019 and N1.09 billion in 2018.
“As against a loss of N569 million in 2017 and a much bigger loss of N8.03 billion in 2016, which explains why the previous management could not produce an approved financial statement for three years (2014 to 2016)’’.
He explained that the current management of the Bank, led by Bello, assumed office in April 2017 to replace the former management.
He, therefore, expressed dissatisfaction over the recent incessant attacks on the Bank and its management in a section of the media, predominantly social media.
He also noted that the said petition was attributed to a faceless organisation identified as Citizens Committee for Corruption Free Nigeria (CCCN), whose address could not be verified.
“However, since the perpetrators of the campaign of calumny appear to be relentless, the bank has found it necessary to put the records straight and allay the concerns of our numerous stakeholders.’’
Omidiji said that in spite of the malicious attacks, the management remained focused on the task of achieving its mandate of broadening Nigeria’s foreign exchange earnings by funding credible export-oriented businesses in the non-oil sectors.
He, therefore, urged the public to ignore any reporting to the contrary.
Mrs Kemi Awodein, President, Association of Issuing Houses of Nigeria (AIHN), says the Central Bank of Nigeria’s aggressive interest rate hikes helped stabilise investor confidence and channel more funds into fixed-income instruments in 2024, boosting market participation and liquidity.
Awodein stated this in a statement issued on Thursday night after the association’s Annual General Meeting and presentation of the 2024 financials in Lagos.
She said the apex bank relied on steep rate adjustments to contain inflation and restore balance to the financial markets.
The AIHN financials showed that total funds and liabilities rose from N452.6 million in 2023 to N518.2 million in 2024.
Total income grew from N86.56 million to N123.6 million within the same period, while expenditure increased from N50.08 million to N60.75 million, resulting in surpluses of N36.4 million in 2023 and N62.9 million in 2024.
Highlighting the dynamics of the fixed-income market, she said: “Key drivers for fixed income instruments in 2024 included CBN’s aggressive interest rate hikes to combat inflation.”
“There were significant interest rate hikes in February and March 2024, a total of 600 basis points.”
“In 2024, CBN hiked the benchmark interest rate eight times and by 875 basis points to 27.5 per cent from 18.75 per cent at the beginning of the year.”
Awodein noted that while the high-interest environment crowded out private-sector issuances, it also strengthened investor inflows and improved liquidity.
She added that government borrowing surged, with Open Market Operations (OMO) bills and Treasury bills sales rising sharply to N12.83 trillion in 2024, compared with N716.7 billion in 2023.
“Despite these challenges, as the year progressed, there was renewed investor confidence, driven by government policies and the anticipation of interest rate cuts in other markets.”
“Significant in the year was the successful issuance of the first domestic dollar bond by the Debt Management Office,” she said.
The AIHN boss said equity capital raises gained momentum following the March 2024 recapitalisation directive by the CBN, with several banks concluding transactions by year-end.
“Activity in the sector will continue in earnest in 2025 as the March 2026 deadline approaches,” she said.
Awodein also cited Aradel Holdings Plc’s transition from NASD to the Nigerian Exchange as a major milestone that expanded investment opportunities and deepened liquidity.
She added that long-term debt capital raising remained subdued due to the high-rate environment, with most activities concentrated in Commercial Paper issuances.
Notable transactions included Seplat Energy’s 650 million dollar bond for expansion and Airtel Africa’s 500 million dollar capital raise to strengthen telecoms infrastructure.
According to her, by the end of 2024, banks such as Fidelity Bank, GTBank, Access Bank, FCMB and Zenith Bank had initiated issuances toward meeting new capital requirements.
“Access Bank completed its recapitalisation in 2024, while other banks are expected to conclude their transactions before Q1 2026,” she said.
The equities market opened the week lower on Monday, as indices dipped by 0.25 per cent due to profit-taking in medium and large-capitalised stocks.
Market capitalisation fell by N246 billion, or 0.25 per cent, closing at N97.582 trillion, compared with Friday’s N97.828 trillion.
Similarly, the All-Share Index lost 387.35 points, or 0.25 per cent, settling at 153,739.11.
Consequently, the year-to-date return declined to 49.37 per cent.
Market breadth closed negative, with 38 losers against 19 gainers.
Honeywell Flour Mill led the losers’ chart, dropping 10 per cent to N18 per share.
Northern Nigeria Flour Mills fell by 9.98 per cent, closing at N84.30, while Aradel Holdings declined 9.21 per cent to N710.
Ja Paul Gold dropped 7.95 per cent to N2.20, and Ikeja Hotel shed 7.71 per cent to close at N17.35.
Conversely, Union Dicon Salt topped the gainers’ table, rising 9.93 per cent to N7.75.
Omatek Ventures appreciated 9.92 per cent to N1.33, while NAHCO advanced 7.62 per cent to N113.
International Breweries gained 6.35 per cent to N13.40, and Champion Breweries rose 6.33 per cent to N15.95.
The market analysis showed increased deals, but lower value and volume, with 627.5 million shares worth N25 billion traded in 36,425 deals.
This contrasts with 5.2 billion shares valued at N45.2 billion exchanged in 30,598 deals on Friday.
United Bank for Africa recorded the highest volume and value, trading 136.84 million shares worth N5.54 billion.
Aso Savings and Loans followed with 108.94 million shares valued at N120.4 million, while Access Holdings traded 68.2 million shares worth N1.62 billion.
GTCO exchanged 49.8 million shares valued at N4.55 billion, and Zenith Bank transacted 31.8 million shares worth N2 billion.
Sen. Francis Fadahunsi, Chairman, Senate Committee on Industry, has expressed dismay over the low patronage of made-in-Nigeria automobiles by the federal and state governments in the country.
Fadahunsi made the observation when the committee members visited Anambra Motor Manufacturing Company (ANAMMCO) in Enugu on Friday.
The chairman said they found out from the visit that there was a lot of potential that was being wasted in Innoson Motors and ANAMMCO because of non-patronage of the federal and state governments.
According to him, if the federal and state governments are patronising our indigenous vehicle assemblers, manufacturers and CNG buses, Nigeria will be a better place instead of wasting our money and foreign resources to import vehicles.
“What we have seen in Enugu and Anambra is in line with the President’s New Hope Agenda. There are no types of buses that the government is looking for that these local assemblers and manufacturers cannot produce.”
“What they need is a legal backing and funds from the same federal government that established them to carry on.”
“Their foreign partners are physically present imparting technical knowledge on them, and before next year, you will see that Nigerian-manufactured vehicles are everywhere,” he said.
He called on Ministries, Departments and Agencies to patronise made in Nigeria vehicles, adding that in buying them, they would be reinvesting in the economy and creating jobs for unemployed youths.
Fadahunsi also said that the Senate Committee would convince their colleagues to start patronising vehicles produced in Nigeria and assist in enacting bills to make them thrive.
Mr Oluwemimo Osanipin, Director-General of the National Automotive Design and Development Council (NADDC), commended the committee for the oversight function, adding that the automobile sector had the capacity to generate a lot of multiplier effects in the economy.
He tasked governments with policies that would encourage the buying of local manufactured goods and stimulate demand, which also allowed individuals to buy.
“That is why the government is pushing for a credit scheme through credit cards and legislation that will promote investment in the auto sector.”
“So the legislation has been looked into, and this will equip the legislators to know when to come in and appreciate the need for that bill to be passed faster,” he said.
Osanipin added that the committee’s visit would offer them the opportunity to identify the challenges of auto operators and areas needing support.
The Chief Operating Officer of ANAMMCO, Mr Bennett Ejindu, described the visit as a “positive development”, saying it underscored the importance the President Bola Tinubu administration and Senate attached to industrial development.
Ejindu recalled that ANAMMCO was set up in the 1970s, saying, “It gives me a kind of hope that the authorities within Nigeria, both those making laws and those executing them, are interested in reviving automotive manufacturing in Nigeria”.
He stated that the abandonment of the industry between 1970 and 1986 made the world think that Nigeria was not serious about developing the automotive industry.
The operating officer added that governments could also assist in resurrecting the industry through direct involvement and the creation of an enabling environment for the industry to thrive.
“But with the interest that we are seeing now from the government, it gives us a kind of hope that things will turn around. This firm has the potential to manufacture vehicles for Nigerians,” he said.
Listing infrastructure as the major challenge of automobile companies in Nigeria, Ejindu called for the passage of the National Automotive Industry Development Policy (NAIDP) bill to build investors’ confidence in the country’s automobile industry.
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