Connect with us

Banking & Finance

RT200 FX repatriation: CBN releases N3.5bn incentive to exporters

Published

on

The Central Bank of Nigeria (CBN) has released N3.5 billion rebate incentive to various exporters who sold goods through the Importers and Exporters Window.

The CBN Governor, Mr. Godwin Emefiele, made the announcement at the Bankers’ Committee’s 30th meeting on Thursday.

Also read: Emefiele remains focused on delivering CBN mandate – Group

The newsmen report that the apex bank had in February announced policies, plans and programmes for non-oil exports that would enable Nigeria to earn 200 billion dollars in foreign exchange repatriation.

Speaking virtually on the outcome, the Managing Director of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, said that the initiative was in fulfillment of Emefiele’s promise on the policy of the ”Race to 200 billion dollars in FX repatriation”.

“At the 30th meeting of the Bankers Committee earlier today, the Central Bank Governor announced the immediate release of rebate, totaling N3.5 billion incentives to our various exporters in fulfillment of his promise on the policy of the Race to 200 billion dollars from non-oil export, to boost the foreign exchange inflows into the country.

“The initiative is to encourage value addition to export products of Nigeria, specifically the policy spoke to value addition in place of immediate which is, semi-finished products, intermediate, which is semi-finished products and completely finished products.

“You would recall that the CBN Governor announced a rebate of N65 for every dollar of export proceeds sold to another end user while the proceeds from export utilized by the exporter will attract a rebate of N35,’’ she said.

According to her, there are 150 customers at various levels who will be benefitting from the money.

She said, “Some under the finished goods and some under the semi-finished goods that have qualified for the rebate.

The money is going to be paid quarterly and it’s for the first quarter.

Onyeali-Ikpe also said that the governor pronounced a long-term finance scheme of single-digit for state governments as incentives to set up export processing zones and terminals.

She added, “this rebate we’ve just announced will be paid quarterly to exporters who qualify.

The incentives to the government will be at single digit and there will be long term financing.’’

She said that the only state government that had concluded its port was Plateau, saying that all the others are at different levels of engagement.

She also said that since the launch of the new policy, the country had received 60 million dollars in foreign exchange

The Managing Director of WEMA Bank, Mr. Ademola Adebise, who spoke on the initiatives being given to expand the different payment options in Nigeria, especially the NQR Code, said, “this is complementary and basically geared towards improving the efficiency of our payment platform system and very shortly, the NQR code will be acceptable in well over 176 countries.

“So, the committee decided after appraising the progress made on the adoption to increase the level of awareness of this platform, considering the huge benefits that it brings to the economy.

He urged Nigerians to access the NQR code and the eNaira on banks’ mobile apps or digital platforms.

The Managing Director of Guaranty Trust Holding Company(GTco), Mrs. Miriam Olusanya, who spoke on the progress of the eNaira, said that the app had been downloaded over 756,000 times with 165,000 retail consumer wallets and 2,800 merchant wallets since its launch six months ago.

“This is not unique to this app.

This is what we usually see with any new app,’’ she said.

Olusanya said that in terms of adoption, the banks had been pushing it to their customers and the merchants’ numbers but which are quite low.

She added that the banks would continue pushing the merchant activation for people to find where to spend their eNaira.

She also said that the banks had planned to move to phase two of the eNaira which would be able to capture the unbanked, using the USSD platform to aid financial inclusion.

The Managing Director of Sterling Bank, Mr. Abubakar Suleiman, said, “in addition to the payment system, we have also extensively discussed the impact of the great resignation with so many of our very experienced talents, especially in the areas of software engineering, either leaving the industry or leaving the country.

“We are committed to using industry platforms like the Chartered Institute of Bankers of Nigeria to drive the process of training moral skills in the areas where we see deficits with the hope that this will improve the availability of talents within the banking sector to drive innovation.

“This will be funded by the industry and will be part of our contribution toward talent and development,’’ he said.

 

Banking & Finance

Nigeria’s debt sustainable, says DMO, as Stock Debts Soars

Published

on

Nigeria’s debt sustainable, says DMO, as Stock Debts Soars

Against the backdrop of verbal attacks on the soaring Government stock-debts profile, the Debt Management Office (DMO) has declared that Nigeria’s debt remains sustainable.

The Director-General of DMO, Patience Oniha, said this on Monday in Abuja, noting that Nigeria’s total debt stock as of June was N103 billion.

Oniha, however, insisted that there was an urgent need to boost the country’s revenue to further ameliorate the debt burden.

She suggested an efficient tax administration that would ensure greater compliance with remittances, and be devoid of all forms of evasions in the system.

According to her, most countries place more emphasis on taxation as a principal source of funding for the government.

She advised that new borrowings should be tied to projects that would generate commensurate revenues to service loans used to finance them.

She also said that physical assets such as idle or under-utilised properties could be redeveloped for commercialisation to generate revenue.

According to Oniha, the current revenue problem is compounded by leakages like oil theft and petrol subsidy.

“These have significantly reduced the revenue from crude oil sales that used to account for the bulk of government revenue,” she said.

She said that the outlooks of both the local and international markets were becoming tighter with rising interest rates.

She called for moderation in new borrowings and accelerated revenue growth to shore up non-oil revenue.

She, however, said that the country’s total public debt-to-Gross Domestic Product (GDP) ratio was still within reasonable limits.

“At 23.06 percent, the debt-to-GDP ratio is still within Nigeria’s self-imposed limit of 40 percent.

“It is also within the World Bank/International Monetary Fund (IMF) recommended limit of 55 percent for countries within Nigeria’s peer group and 70 percent for ECOWAS countries,” she said.

She said that debt service-to-revenue was high, adding that urgent steps needed to be taken to boost revenue and further enhance public debt sustainability.

“Nigeria’s public debt stock has grown consistently over the past decades and even faster in recent years, and debt service has continued to grow.

“The country’s low revenue base compounded by dependence on crude oil receipts resulted in budget deficits over the past decades.

“Efforts at increasing non-oil revenue are, however, yielding positive results,” she said.

According to her, with a low debt-to-GDP ratio, the debt service-to-revenue ratio would have been low if revenue were strong.

She said that Nigeria was deploying debt management tools of the World Bank and IMF to ensure debt sustainability.

“These tools include an annual Debt Sustainability Analysis (DSA) and a Medium Term Debt Management Strategy (MTDS) every four years,” she said.

Oniha listed other initiatives to ensure debt sustainability as the Presidential Infrastructure Development Fund (PIDF), Infrastructure for Tax Credit, Infrastructure Corporation of Nigeria Limited (InfraCorp) and Off-Balance Sheet Financing.

“The PIDF is managed by the Nigeria Sovereign Investment Authority (NSIA). The fund is to be invested in critical road and power projects across the country.

“The Infrastructure for Tax Credit initiative encourages companies to commit their resources to the construction of new roads or rehabilitating old ones with the assurance that such expended resources would be recouped from company tax.

“InfraCorp is a Public Private Partnership promoted by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC) and NSIA, to catalyse and accelerate investment in Nigeria’s Infrastructure sector.

“InfraCorp has a seed funding of One trillion Naira as equity from the promoters,” she said.

Continue Reading

Banking & Finance

Equity Market Extends Gains by N63bn; Geregu, SCOA Lead Laggards’ Table

Published

on

Equity Market Extends Gains by N63bn; Geregu, SCOA Lead Laggards’ Table

The equity market opened the week on a positive note, gaining N63 billion, 0.24 percent, as market capitalisation closed at N26.291 trillion on Monday, compared with N26.228 trillion recorded on Friday.

Also, the All-Share Index rose by 115.58 points or 0.24 percent to close at 48,270.23 from 48,154.65 on Friday.

The market’s performance was primarily driven by gains in stocks of Nigerian Breweries and BUA Cement.

Consequently, the year-to-date (YTD) return rose to 12.96 percent.

Market breadth closed positive as 15 stocks were on the leaders’ table, with 13 on the laggards’ log.

Guinness led the gainers’ table with 10 percent to close at N69.30 per share.

Eternal oil followed with a gain of 8.75 percent to close at N6.44, while Royal Exchange grew by percent to close at 78k per share.

Linkage Assurance advanced by 7.50 percent to close a 43k per share Presco gained by 6.64 percent to close at N120.50 per share.

Conversely, Geregu led the laggards’ table, depreciating by 9.85 percent to close at N110.70 per share.

Scoa Nigeria followed with a loss of 9.43 percent to close at 96k, while Thomas Wyatt Nigeria declined by 9.09 percent to close at 40k.

Also, LASSACO depreciated by 7.41 percent to close at 25k per share. Chams fell by 4.49 percent to close at 85k.

Analysis of today’s market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 18.69 percent.

A total of 633.74 million units of shares valued at N4.10 billion were exchanged in 3,398 deals.

Continue Reading

Banking & Finance

NGX: Market Slides, sheds N2bn; Naira Slumps, exchanges N445.83 to Dollar 

Published

on

NGX: Market Slides, sheds N2bn; Naira Slumps, exchanges N445.83 to Dollar 

…Honeywell Flour Mill, RT Briscoe lead Losers’ Chart*** 

Key performance indicators of the Nigerian Exchange Ltd. (NGX) declined marginally on Thursday as market capitalisation which open with N25.959 trillion, lost N2 billion or 0.01 percent to close at N25.957 trillion.

Also, the All-Share Index (ASI) closed lower by 3.4 points or 0.01 percent to settle at 47,656.64 points compared with 47,660.04 recorded on Wednesday.

Consequently, the year-to-date (YTD) return stood at 11.57 percent.

Sell-offs in MTN Nigeria Stock led to a downturn in the performance of the market.

However, market sentiment, as measured by market breadth, was positive, as 11 stocks gained relative to nine losers.

UPDC Real Estate Investment Trust recorded the highest price gain of 9.09 percent to close at N3 per share.

McNichols followed with a gain of 8.93 percent to close at 61k, while Japual Gold and Ventures appreciated by 7.41 percent to close at 29k per share.

Nigerian Breweries went up by 7.14 percent to close at 45k per share.

Also, Royal Exchange Assurance rose by 4.76 percent to close at 66k per share.

On the other hand, Honeywell Flour Mill led the losers’ chart by 7.89 percent to close at N2.10, RT Briscoe followed with a decline of 7.41 percent to close at 25k and Wema Bank shed 5.45 percent to close at N3.12 per share.

FCMB Group lost 4.18 percent to close at N3.21, while Cutix Plc shed 3.46 percent to close at N2.5 per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 115.63 percent.

A total of 172.90 million shares valued at N2.84 billion were exchanged in 3,073 

In another development, the Naira on Thursday exchanged at 445.83 to the dollar at the Investors and Exporters window, a depreciation of 0.12 percent, compared with the 445.30 it exchanged on Wednesday.

The open indicative rate closed at N444.60 to the dollar on Thursday.

An exchange rate of N447 to the dollar was the highest rate recorded within the day’s trading before it settled at N445.83.

The Naira sold for as low as 422 to the dollar within the day’s trading.

A total of N99.50 million was traded at the official Investors and Exporters window on Thursday

Continue Reading

Editor’s Pick

Politics

Simply Easy Learning
Simply Easy Learning