Business - NEWS AGENCY OF NIGERIA

Afonne Emmanuel
Jul, Thu, 2023

Stakeholders task Nigeria, firms on environmental governance

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By Chinyere Joel-Nwokeoma

Some stakeholders on Thursday said that Nigeria and corporates entities should reshape thoughts and actions and align future investment practices with the Environmental, Social and Governance (ESG) considerations.

The stakeholders expressed the view at a workshop on: “ESG and Sustainable Finance – The Future of Investments”.

The workshop was organised in Lagos by the Securities and Exchange Commission (SEC) in collaboration with Financial Centre for Sustainabilities, Lagos.

The stakeholders said that the global community had adopted ESG, urging that Nigeria should not be left behind.

The Director-General of SEC, Mr Lamido Yuguda, noted the world had found itself at a critical juncture with the devastating impact of climate change, inequality, conflict and insecurity, among others.

Yuguda said that the situation called for responsible corporate behaviour to reshape thoughts and actions around the future of investment practices to ensure that they would align with ESG considerations.

“All stakeholders desirous of a better future for themselves, their businesses and their communities should fully support every effort to build an economy that encourages sustainable business practices,” he said.

Yuguda said that the revised Nigerian Capital Market Masterplan strongly underlined the need to create awareness and actively deploy educational and advocacy campaigns to promote ESG-compliant products.

He urged stakeholders and market operators on ESG-compliant products to expand product offerings and provide more long-term financing for businesses while protecting the environment, reducing inequality, promoting security and fostering national economic prosperity.

“This initiative has been identified to be of priority, demanding immediate implementation, and this is one of the Securities and Exchange Commission’s principal reasons for organising this workshop, in collaboration with our co-host, the Financial Centre for Sustainability (FC4S),” he said.

According to him, sustainable finance integrates ESG factors into investment decisions, seeking long-term economic and social benefits for both stakeholders and the society.

“It is, therefore, heartening to witness a growing number of institutional investors and funds embracing various ESG investing approaches in recognition of the potential positive impact on individuals, businesses and society.

“At the global level, we are also witnessing an encouraging trend of sustainability-themed funds gaining prominence, especially in developed markets.

“This is quite significant, as it signposts a rising global adoption of sustainability criteria within the investment community – a situation, we believe, is not unconnected with the strong correlation that has been demonstrated between ESG compliance and financial performance.

“It is a well-known fact that Nigeria has the opportunity to drive positive changes through the focused promotion of ESG and sustainable finance in our financial markets,” Yuguda said.

Dr Franklin Ngwu, Director, Lagos Business School Public Sector Initiative, said that ESG was the way to go globally, urging that Nigeria should join the community.

Ngwu urged companies to embrace ESG, saying that funds were sourced cheaper for ESG-compliant firms.

He also stressed the need for Nigeria and companies to embrace ESG principles and guidelines for economic growth and development.

Ngwu urged the Federal Government to support ESG matters and embrace its principles as well as partner the private sector to ensure its sustainability.

According to him, enhanced advocacy and reward to ESG-complaint firms will motivate corporates to embrace the initiative.

“ESG is all about our future and sustainability,” Ngwu said.

Mr Adrian Mill, the Managing Director of Environmental and Social Sustainability (ESS), urged Nigerian companies to integrate reducing climate change risk in their activities.

Mill said that ESG should be part of every company because it was trending worldwide.

He said Nigerian investors should be empowered enough and educated to take ESG investments.

Mill also called for training of people on ESG to ensure sustainability.

Dr Mo’ Omamegbe, Head of Strategy at Securities and Exchange Commission, said Nigeria must build local experts on ESG and ensure awareness creation through trainings, workshops and road shows, among other methods. (NAN)(www.nannews.ng)

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Edited by Ijeoma Popoola

Afonne Emmanuel
Jul, Thu, 2023

Summit: Afreximbank offers $3bn credit limit to Africans willing to invest in Russia

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By Ikenna Uwadileke

The African Export–Import Bank (Afreximbank) on Thursday in St Petersburg, Russia, announced a credit limit of 3 billion dollars to support African investors willing to exploit the opportunities in Russia.

The President and Chairman Board of Directors of Afreximbank, Dr Benedict Oramah said this at the opening session of the 2nd Russia-Africa Economic and Humanitarian Forum.

The News Agency of Nigeria (NAN) is one of the media partners of the Russia-Africa Summit 2023 and its Managing Director, Mr Buki Ponle, is also attending the event.

Oramah said that the scheme under the African Trade Exchange would promote easy flow of trade between Russia and Africa.

“The African Trade Exchange is a platform which we use to pool African demand for grains and fertilisers against which Afreximbank has placed an aggregate credit limit amounting to three billion dollars to support the trade.

“The three billion dollars represents what is available and can be used on a revolving basis to support the significant demand for food and fertilisers on the continent of Africa,” he said.

Oramah also said that through partnership with the Russia Export Center, Afreximbank will be able to support African investors who are willing to exploit the opportunities in Russia.

While appreciating investments from Russia into Africa, he expressed optimism that African investors would also invest in Russia.

According to him, it is where we have two way investments that we can accelerate trade flows and economic integration.

“We projected moving two way trade to closer to 40 billion dollars by 2026, in the four years to 2021 the trade flows reached almost 20 billion dollars from about 10 billion dollars five years earlier.

“These are despite the COVID-19 pandemic and all the significant global difficulties.

`With the strong partnership between Afreximbank and Russia Export Center, we expect a doubling of the trade flows in the next four years.

“Some progress is being made and we believe that this is achievable,” Oramah said.

The Afreximbank President further said that the global food security challenges brought to the fore the critical role trade with Russia plays in guaranteeing Africa’s food security.

He said that a significant proportion of African economies depend on Russia for the supply of fertilisers and 30 per cent of African cereal imports from Russia.

According to him, ensuring that these trade flows continue remains the priority of Afreximbank and its African member states.

“That is why in the context of unprecedented global uncertainties, Afreximbank has been working with the African Union Commission, the United Nations System and our Russian partners to use the e-commerce African Trade Exchange.

“This will facilitate seamless flow of goods and payments in any currencies the sellers and buyers choose and in a transparent manner,” he said.

Oramah expressed Afreximbank’s readiness to offer trade services, easy confirmation facilities and payment services under the African Trade Exchange platform.

“We look forward to continuing this effort with our Russian partners and using this platform to ease access to grains and fertilisers,” he said.

Oramah who said that 300 million Africans go hungry daily emphasised the need for effort towards ensuring food security.

“It is important that we all do our best to make sure that until we begin to achieve food sovereignty that we ensure that food security is attained.

“Beyond the immediate food security priorities, Afreximbank and the Russia Export Center are collaborating to promote trade and investments in other critical sectors.

“This is with emphasis placed on those activities that will help integrate the African economy and advance the implementation of the African Continental Free Trade Agreement (AfCFTA),” he said.

Oramah expressed the bank’s readiness to offer array of products to support investments in agriculture, industrial sector, parks, health and other critical infrastructure.

“By the end of the summit, I hope that Russia and Africa will have strengthened their solidarity, laid the foundation for rebuilding the supply chains for grains and fertilizers trade which is today a bit broken.

“This is important so the billions of dollars in the trade can continue,” he said. (NAN)(www.nannews.ng)

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Edited by Sadiya Hamza

Russia to supply 50,000 tons of grains to African countries – Putin

Afonne Emmanuel
Jul, Thu, 2023

Business , Economy/Business

Russia to supply 50,000 tons of grains to African countries – Putin

169 total views today

By Emmanuella Anokam

Russian President, Vladimir Putin, says Russia will supply 50,000 tons of grains to some African countries in the next three months in its bid to ensure food security.

Putin said this on Thursday while declaring the Second Russia–Africa Summit and Economic and Humanitarian Forum 2023 open in St. Petersburg, Russia.

The News Agency of Nigeria (NAN) reports that the main theme of this year’s Forum is ‘Technology and Security for Sovereign Development that Benefits People.’

About 17 African countries participating in the summit are represented at the level of head of states with NAN among the media partners of the Summit.

Putin said Russia would provide the products freely to consumers, adding that with its harvest records it was ready to replace Ukrainian grain exports to Africa on both commercial and aid basis.

“Russia holds a 20 per cent share of the global wheat market. In the first six months of 2023, it has already exported 10 million tons of grain to Africa.

“Russia is ready to provide Zimbabwe, Burkina Faso, Somalia, and Eritrea with 25-50 thousand tons of grain each in the next three to four months and ensure its free delivery to consumers,” he said.

Putin said Russia-Africa trade turnover reached 18 billion dollars in 2023, while trade in in agricultural products between Russia and Africa grew by 60 per cent.

Putin also announced the preparation of approximately 30 energy projects involving Russia in Africa, with a total capacity of around 3.7 gigawatts across 16 African countries.

He said Russian oil and gas exports to Africa had increased by 2.6 times, adding that Russia could provide Africa with unique non-energy applications of nuclear technology, including medicine.

“A Russian industrial zone near the Suez Canal in Egypt will soon launch, and its products will be exported throughout Africa.

“Russia is ready to develop Africa’s financial infrastructure and connect them to the Russian payment system.

“Russia promotes the establishment of relations between the Eurasian Economic Union (EAEU) and Africa and will share integration experience of the Union State of Russia and Belarus,” he said.

EAEU is a free trade agreement that came into being in 2015 to increase economic cooperation and raise the standard of living of its members.

Member countries include Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

He, however, suggested the establishment of intergovernmental commissions with all interested countries.

He further said nearly 35,000 African students were studying in Russia, and the number was constantly growing.

“The quota has increased by 2.5 times and will exceed 4,700 persons in 2024,” he added.

He also said Russia would supply 10 mobile laboratories and train hundreds of specialists as part of a joint programme to combat infections with 2.1 billion rubles allocated for it.

Russia proposes to intensify cooperation in sport and invites African youth to participate in Russian sport events.

“Work is underway to open TASS, Russia Today, RG, and VGTRK media offices in Africa,” he said.

NAN Managing Director, Mr Buki Ponle, is also attending the event. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko

Russia to deepen cooperation with Nigeria, Africa, as 2nd Russia-Africa Summit begins

Afonne Emmanuel
Jul, Thu, 2023

Business , Economy/Business , General News

Russia to deepen cooperation with Nigeria, Africa, as 2nd Russia-Africa Summit begins

200 total views today

By Ikenna Uwadileke

The 2nd Russia-Africa Economic and Humanitarian Summit opened in St. Petersburg on Thursday with Russia seeking to diversify its cooperation in terms of long-term development with Nigeria, Africa.

The News Agency of Nigeria (NAN) reports that the event taking place at Expoforum was declared open by the Russian President Vladimir Putin, with many African leaders in attendance.

The forum which has NAN as one of its media partners is featuring 30 panel sessions and thematic events on the most important issues to promote cooperation between Russia and African countries.

According to the Roscongress Foundation, organisers of the event, it aims at bringing about a fundamentally new level of mutually beneficial partnership to meet the challenges of the 21st century.

“The goal of the event is to promote efforts to strengthen comprehensive and equal cooperation between Russia and African nations across all areas of society including politics, security, economic relations, science and technology, and the cultural and humanitarian spheres.

“The forum, which is being held as part of the Second Russia–Africa Summit, is a unique event in Russian-African relations.

“The event is set to diversify the scope and nature of Russian-African cooperation, in turn setting the course of its long-term development.

“Public discussions taking place as part of the event will deal with the most pressing issues on the Russian-African agenda.

“This is taking into account the full extent of cooperation between Russia and the African nations, which extends beyond economic activity, a decision was taken to expand the 2023 edition of the Forum with a significant humanitarian element,” the foundation said.

Nigeria is being represented by Vice President Kashim Shettima.

NAN also reports that the event will also feature a large-scale exhibition and a platform for business meetings.

It would be recalled that the first Russia-Africa Summit was held in the resort city of Sochi in October 2019, with the theme: “Peace, Security and Development”.

The first summit was co-chaired by President Putin and Egyptian President Abdel Fattah al-Sisi, who was the then Chairperson of the African Union (AU). (NAN)(www.nannees.ng)

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Edited by Ese E. Eniola Williams

We’ll support Africa to take its rightful place – Putin

Afonne Emmanuel
Jul, Thu, 2023

Business , Economy/Business , General News

We’ll support Africa to take its rightful place – Putin

195 total views today

By Salif Atojoko

Russian President Vladimir Putin has said that Africa is poised to take its rightful place in the system of global economic links.

Putin said this at a trilateral meeting with Mr Azali Assoumani, Chairperson of the African Union and President of the Union of the Comoros, and Mr Moussa Faki Mahamat, Chairperson of the African Union Commission.

The event held in St. Petersburg, Russia.

At the meeting, which preceded the Russia-Africa Summit 2023, Putin said he viewed the African Union as a leading regional organisation that shaped modern security structure on the continent.

“I would like to remind you that Russia was one of the first to react positively to the initiative advanced by the President of Senegal, who preceded you in this position, for granting the African Union full membership in the G20.

“We hope that the decision will be adopted at the G20 Summit in New Delhi in September.

“As before, Russia is ready to help strengthen African countries’ sovereignty and contribute to Africa becoming a key partner in the new system of the multipolar world order,” he said.

He added that Russia would give priority attention to the issues at the summit, which opened on Thursday.

“We will also discuss practical decisions on building up trade and economic cooperation, ensuring food and energy security, and developing national healthcare systems.

“The planned adoption of the declaration of the Second Russia–Africa Summit and the Russia–African Union Action Plan for 2023–2024 will help launch practical efforts in the areas mentioned above and many others,” the Russian president said.

According to him, in spite of difficulties created by the coronavirus pandemic and sanctions imposed against Russia, the country had ensured the growth of its trade and economic ties.

“Our mutual trade reached approximately 18 billion dollars in 2022 and increased by nearly 35 per cent in the first six months of 2023.

“Russia remains a reliable food supplier for Africa.

“In 2022, Russian food exports amounted to 4.7 billion dollars. Many large Russian companies are successfully working in Africa.

“The key spheres of our cooperation include energy, subsoil use, agriculture. There are good opportunities for cooperation in research and technology, education and culture,” Putin said.

He said Russia highly valued its relationship with the Union of the Comoros which, he said, was based on the principles of mutual respect and balance of each other’s interests.

He added that the country had development potential in a number of spheres.

“We are open to cooperation with your country in all areas,” he added.

The News Agency of Nigeria (NAN) is one of the media partners of the Russia-Africa Summit 2023 and its Managing Director, Mr Buki Ponle, is also attending the event. (NAN)(www.nannews.ng)

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Edited by Ijeoma Popoola

Africa’s food sovereignty tops agenda at Russia-Africa summit

Afonne Emmanuel
Jul, Wed, 2023

Agriculture , Business , General News

Africa’s food sovereignty tops agenda at Russia-Africa summit

202 total views today

By Emmanuella Anokam

The Russia-Africa Summit 2023 will discuss partnership for food sovereignty, strategies to realise the potential and how Russia can help Africa develop its agricultural infrastructure.

Mr Oleg Ozerov, Ambassador at Large of the Ministry of Foreign Affairs of the Russian Federation, in a statement released on Tuesday in St. Petersburg, said the federation would discuss ways to establish its production on the continent.

Ozerov said though the issue was related to food security but it would be discussed within the framework of both the political summit and the Economic and Humanitarian forum.

“Russia is a supplier of products that ensure food security: grains, fertilisers and their components.

“This issue is becoming more and more acute. According to the latest UN report, the number of hungry people in Africa is growing.

“But, during the summit, we will also discuss establishing our own production on the continent, and African countries would like to receive agricultural technology and equipment from Russia,” he said.

He said Africa was one of the most vulnerable regions in the world in terms of food security, despite agriculture employing more than 60 per cent of its labour force and contributing about a third of the continents GDP.

“Experts estimate that 60 per cent of Africa’s fertile land is underutilised.

“The only way to solve this problem is to achieve food sovereignty. This is a realistic possibility due to the continent’s immense agricultural potential,” he said.

The Integrated Security and Sovereign Development block of the business programme of the Second Russia–Africa Summit and Economic and Humanitarian forum will hold the panel session on food sovereignty.

The session which will start on July 27 at 9.00 a.m. has its title as “Russia and Africa: Partnership for Food Sovereignty.”

The Second Russia–Africa Summit and Russia–Africa Economic and Humanitarian forum, which will hold from July 27 to 28, is being organised by the Roscongress Foundation. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko

Dangote, Niger govt partner on investment opportunities

Ismail Abdulaziz
Jul, Mon, 2023

Business

Dangote, Niger govt partner on investment opportunities

170 total views today

By Mercy Osajiugo

The Dangote Industries Limited (DIL) and the Niger State Government are strengthening ties towards exploring fresh investment opportunities in the State.

Mr Mansur Ahmed, Dangote Group’s Executive Director, Government and Strategic Relations, stated this during the Dangote Special Day at the 20^th Niger State National Trade Fair in Minna.

H said that Niger State was central to the company’s overall investment plan in the agricultural sub-sector.

He said the Dangote rice mill earlier planned for Wushishi was being moved to Badeggi where there is enough water supply conducive for rice farming and business.

He also announced the company’s preparedness to partner with the state government in the educational sector.

Ahmed said that given the land size, fertile topography and friendly business atmosphere, DIL was passionate about adding value to activities of the Chamber and businesses in the state.

Gov. Mohammed Bago expressed delight for DIL investment in the agricultural and educational sectors, adding that the new government would created an enabling environment for businesses to thrive in the state.

Bago, who was represented by the Permanent Secretary, Public Service Department of the state’s Head of Service, Mr Abubakar Sadiq, urged the Dangote Group to leverage on the renewed business opportunities in the state.

He said the new administration would build a viable economy driven by private sector participants.

“The state will leverage on Agro industrial value chains to provide critical infrastructure for the development of high-quality products for local consumption and export.”

He commended Niger Chamber of Commerce, Industries, Mines and Agriculture (NCCIMA) for the annual event to promote trade, investment, and entrepreneurship.

Speaking, the President NCCIMA, Dr Bisi Adeniyi, commended the company for sponsoring the on-going Trade Fair themed “Public-Private Partnership: A Panacea for Nigerian Economic Growth.”

Bisi urged DIL and other investors to key into the International Trade Fair being planned by NCCIMA to move research in tertiary institutions in the state forward.

The participating companies under DIL include Dangote cement, Dangote sugar, Dangote salt and seasonings and Dangote Fertiliser,

Bisi noted that the State recognizes the private sector as a partner and engine for economic growth.

Eulogizing the Dangote Group for its business acumen, former President of the Chamber Mr. Umar Ahmed Bakai described the Dangote Group as a worthy partner.

He added that the relationship he pioneered was bearing fruits for the people of the State and Nigeria as a whole.(NAN)

Edited by Ismail Abdulaziz

IMG rewards shareholders with N208.1m dividend

Afonne Emmanuel
Jul, Sat, 2023

Business , Economy/Business

IMG rewards shareholders with N208.1m dividend

158 total views today

By Rukayat Moisemhe

Industrial and Medical Gases Nigeria Plc (IMG) has rewarded its shareholders with dividend worth N208.12 million for 2022 financial year.

According to the company, this translates to 40 kobo per ordinary share as against a stock dividend of one for every five shares held in 2021.

IMG Acting Chairman, Mr Aminu Ado, at its 64th Annual General Meeting (AGM) in Lagos, assured the shareholders that the company would continue to embark on revenue generating capital expenditure to boost its earnings in 2023.

Ado revealed that IMG profit before tax grew by 27.56 per cent to N704 million in December 2022, as against N552 million in the corresponding period in 2021.

He said its earnings per share stood at 90 kobo, compared to 89 kobo in the previous year and its net profit shot up by 20.52 per cent to N448 million from N372 million in 2021.

Ado noted that the year 2022 was a challenging but successful year for the company.

He, however, stated that the company’s superior performance was made possible by the collective efforts of all its stakeholders.

“The board would continue to support management’s drive on aggressive marketing of its products, improve service delivery, reduce overheads, develop new markets and introduce new and innovative products.

“These activities, we believe, will back-up management’s drive to sustain and improve shareholder value in 2023,” he said.

IMG Managing Director, Mr Ayodeji Oseni, said key drivers of the company’s impressive performance include strategic implementation and other initiatives.

According to him, the company placed high premium on strategic business development initiatives and was a customer-focused organisation.

“Our operations are based on integrated marketing and selling solutions in the market place.

“The adoption of a deliberate cost reduction policy and focused improvements in our processes is to ensure that plant capacity utilisation play a major role in our performance.

“We value our staff and constantly empower them in addition to ensuring continuous improvement in our internal efficiencies across the business,” he said.

Meanwhile, some elated shareholders of the company extolled its performance and its delivery of brand promise, in spite of the inclement operating environment .

President, Noble Shareholders Association of Nigeria, Mr Mathew Akinlade, said the company performed well in spite of issues of inflation, foreign exchange scarcity, insecurities and other challenges.

“Gross revenue rose by 44 per cent and though the cost of sales increased by 56 per cent, the company is generous to give a very good return of 40 kobo dividend per share.

“It means the board and management care for its shareholders,” he said.

The News Agency of Nigeria (NAN) reports that the company, which rebranded from BOC Gases Nigeria Plc, continues to strengthen its global competitiveness on a sustainable basis, irrespective of the nature of the operating environment. (NAN)(www.nannews.ng)

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Edited by Angela Okisor/Olawunmi Ashafa

Experts task businesses on cyber security investment

Vivian Ihechu
Jul, Thu, 2023

Business , Defence/Security

Experts task businesses on cyber security investment

204 total views today

By Rukayat Moisemhe

A cybersecurity leader, Ms Confidence Staveley, says businesses must scale-up investments in cybersecurity to guard against cybercrime and other technological threats.

Staveley, also Founder, CyberSafe Foundation, said this at the Nigerian-British Chamber of Commerce (NBCC) Tech Event/ Graduation Ceremony on Thursday in Lagos.

She urged businesses to improve their cybersecurity posture.

The News Agency of Nigeria NAN reports that the NBCC event had as its theme: “Emerging Trends in Tech and its Impact on Nigerian Businesses: Cyber Security and Data Analytics.”

The tech expert noted that Artificial Intelligence (Al) was making it easier for criminals to create convincing targeted phishing emails leading to a lot more business compromise attacks.

She added that cybercriminals were unleashing problems using stolen credentials and causing havoc for Nigerian businesses by breaking into multiple accounts.

Staveley emphasised the need for businesses to have the right culture and empower employees to protect against cyber threats to implement essential cybersecurity controls.

“Businesses must have a cybersecurity strategy and budget in place and must ensure that their cybersecurity posture is independently validated.

“They must also know all their digital assets and which assets are most important to their business and incorporate best practices for cybersecurity into new product designs,” she said.

Staveley also urged individuals to be careful about phishing emails and malwares they log into, saying cybercriminals have found a way to hack human beings instead of systems.

“To this end, individuals and businesses must be trained to be immune to these threats and change their account passwords as much as you can to guide against account compromise.

“Do things like two steps authentication, data encryption, just do the barest minimum to prevent your information from hanging low for criminals to access.

“Also, hire a cybersecurity professional to analyse where you are now and where you ought to be and create a road-map to safeguard against cybercrime,” she said.

Ms Bisi Adeyemi, President, NBCC, noted that several emerging trends in technology had the potential to impact business, especially in the areas of cybersecurity and data analytics.

She listed some of these trends as AI, Machine Learning, 5G technology, Internet of Things, edge computing, blockchain, cybersecurity automation and orchestration, data privacy and compliance.

Adeyemi noted that these emerging trends could have profound impact on businesses, offering both opportunities and challenges.

“It is thus crucial for organisations to stay updated on these trends, invest in cybersecurity measures and adopt data analytics to remain competitive and secure, in an ever-changing technological landscape.

“It also gives me immense pleasure that we are today graduating 22 participants from the second cohort of the NBCC Tech Academy, after three months of intense learning.

“I congratulate all our graduands and wish you all the very best in your various endeavours,” she said.

Mr Abimbola Owoeye, Country Lead, Del Technologies, urged organisations to be aware that their business footprints were left to whatever platforms they subscribed to.

According to him, to be unaware meant exposure to risks.

Owoeye charged Small and Medium Enterprises (SMEs) to leverage some AI tools to lower the costs of running a business.

“In doing this, you would need platforms that would consistently keep your data secure and you can subscribe to Enterprise Resources Planning software as better and cheaper entry for you,” he said.

Mr Steve Asemota, Chief Data Officer, FirstBank, stressed the need for SMEs to leverage data to know the profiles to target and how to price products in emerging markets.(NAN)(www.nannews.ng)

Edited by Chinyere Joel-Nwokeoma

Adeosun urges CBN to reduce CRR of commercial banks

Vivian Ihechu
Jul, Thu, 2023

Business , Health

Adeosun urges CBN to reduce CRR of commercial banks

159 total views today

By Augusta Uchediunor

Mr Akinjide Adeosun, CEO of ST. Racheal’s Pharma, has called on the Central Bank of Nigeria (CBN) to reduce the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) and other commercial banks.

Adeosun made the call at the St. Racheal’s Pharma Finance Forum held in Lagos on Wednesday with the theme: “Manufacturing Renaissance in Nigeria’’.

He said : “I urge the CBN to reduce CRR of DMB’s from 32.5 per cent to 10.0 per cent as similar to what is obtainable in Merchant Banks.

“That way, they defreeze cash for the banks to lend money to us rather than keeping that money with CBN.

“With that, we can expand our businesses and improve the capacity of local manufacturing pharmaceutical companies, for instance’’

The News Agency of Nigeria (NAN) reports that the percentage of cash required to be kept in reserves as against the bank’s total deposits, is called the Cash Reserve Ratio.

CRR is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

The CBN had in a letter on Jul 14, 2023, by Haruna Mustafa, Director of Banking Supervision, addressed to all merchant banks, that it has approved a reduction in their CRR.

The circular read, “The Central Bank of Nigeria hereby informs all Merchant Banks that it has approved a reduction in their cash reserve requirement from 32.5 per cent to 10 per cent effective Aug.1, 2023.”

Adeosun lamented that just about 30 per cent of pharmaceutical brands were manufactured locally, leaving only about 70 per cent to importation.

“With yet about 80 per cent of inputs also being imported, hence the need for support to change the narrative as “we cannot constantly be dependent on others’’.

Identifying the important role that financial institutions played in the economy especially in assisting businesses and sectors grow, he said it was time for the banks particularly, to support pharmaceutical manufacturing industries and the health sector in general.

“In so doing, challenging areas such as access to loan facilities need to be looked into. Alongside, there has to be flexibility when it comes to loans and collaterals.

“There is also need to network with government to better have good grasp of policies and have smooth transition into aligning with policies.’’

Adeosun also made a case for renewed hope, whereby he urged for flexible credit terms, realisation of a single digit interest rate and a smooth transition to a possible 30 to 50 per cent of local manufacturing.

According to him, there is also need for free medical management palliative for indigent patients and assured national security through improved and large scale local manufacturing.

Mr Ayodeji Alaran, a Pharmacist and Managing Director of PBR Life Sciences, spoke on “Renaissance: The Size of the Pharmaceutical Opportunities in Nigeria’’.

Alaran reiterated that the pharma industry was a strategic one, providing medication and other sectors support to strengthen the nation’s security and health of citizens.

He also called for immediate intervention to support local pharma industries, citing that the COVID-19 further revealed the sector’s vulnerability and its high import dependency with evident shortage of supply.

See also Senate calls for harmonious relationship among health professionals

However, he said that in the midst of challenges, the local industries showed significant increase in manufacturing as they demonstrated resilience and capacity to close gaps.

“So, if given the needed support, they will continue to grow,’’ he asserted.

Mrs Ijeoma Ozulumba , ED/Chief Finance Officer of Development Bank of Nigeria (DBN), made a presentation on “The Renaissance of Nigeria’s Manufacturing Sector and the Role of Financial Institutions’’.

She explained that only about 17 per cent of loans and advances had been made to the manufacturing industry in the country in recent years.

She emphasised that financial institutions had roles in helping grow the Pharma Manufacturing Industry, of which they included but where not limited to providing- Access to Capital and Investing and Financing Specialty.

“Infrastructure Development, Power Supply, Transport and Logistics enablement, Risk Management and Insurance, Export Financing especially as share of export had been low, Trade Facilitation.

“Capacity Building, Advisory Services, Support to SMEs, Industry Specific Financing Programmes and Policy Advocacy’’

She assured that her organisation would increase funding opportunities and access for improved economic control and development.

Mr Dimeji Abolade, representing SANOFI, stressed the need for full capacity utilisation of factories and human resources in the local pharma manufacturing industry.

Mr Lekan Asuni, MD, LEFAS Pharmaceuticals, and formerly MD of GSK, identified paucity of data as a challenge in the industry and called for aggregation of data to help the pharmaceutical industry in their businesses.

Mr Ahmed Kagara, Divisional Head (LE-3), Bank of Industry, said his organisation was open to supporting industries and organisations that required same.

See also COVID-19: NCDC registers 8 deaths, 521 new infections

Mr Damilare Shitu, Lead, Data and Analytics, Microsoft, illuminated the significant place of AI through a presentation on `Artificial Intelligence (AI) and Finance in Driving Prosperity of Nigeria’’.

He emphasised that it was an area to be looked into and embraced as it helped in the areas of data collation, data feeding, management, prediction /output, demand generation, quality automated inspection among others.(NAN) www.nannews.ng

Edited by Vivian Ihechu