NEWS AGENCY OF NIGERIA
Experts preach caution as CBN holds first MPC meeting under Tinubu
Banking , Economy/Business

Experts preach caution as CBN holds first MPC meeting under Tinubu

172 total views today

By Kadiri Abdulrahman

As the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) prepares for its July meeting, some financial experts have called for moderation in its policy decisions.

The News Agency of Nigeria (NAN) reports that the CBN has announced that the 292nd meeting of the MPC will hold on Monday and Tuesday, to be chaired by Mr Folashodun Shonubi, the Acting Governor of the CBN.

This will be the fourth MPC meeting of 2023, and the first in about nine years to be chaired by someone other than the suspended CBN Governor, Godwin Emefiele.

At the last MPC meeting in May, Emefiele had announced the committee’s decision to raise the Monetary Policy Rate (MPR) for a seventh consecutive time, from 18 per cent to 18.5 per cent.

That is the highest since the MPR was established in 2006.

The CBN started its monetary policy tightening in May 2022, when the MPR, which is the benchmark interest rate, was increased from 11.5 per cent to 13 per cent.

A financial expert, Prof Uche Uwaleke, told NAN that the decision of the MPC in the July meeting will be influenced by the rising inflation expectations due largely to the sudden removal of fuel subsidy.

Uwaleke, a Professor of Capital Market at the Nasarawa State University, Keffi, said that pressure on the naira and exchange rate volatility occasioned by the recent Naira float would also influence the MPC decision.

According to him, those considerations tend to recommend a further rates hike aimed at taming the stubborn inflation.

“The acting CBN governor, who will be chairing the meeting, has been part and parcel of the hawkish MPC stance for months now, and so another rates hike will not come as a surprise.

“Be that as it may, the MPC should equally recognise that the removal of fuel subsidy has slowed down economic activities considerably with attendant drop in productivity.

“So, economic growth and jobs are already negatively impacted such that a further monetary policy tightening would only worsen the situation.

“Cost of capital will further increase and access to credit by small businesses will become more difficult,” he said.

He said that a further increase in the MPR was also likely to endanger the asset quality of banks through an increase in non-performing loans as Deposit Money Banks (DMBs) repriced their loans.

“In this regard, the balance of risks dictates that the MPC should pause the policy rate hikes, which has been on since May last year by maintaining a hold position on all policy parameters.

“The MPC should recognise that much as its primary mandate is to maintain price stability, it equally has a responsibility to support output growth.

“This is against the backdrop of the fact that many of the factors driving inflation in Nigeria, such as insecurity affecting food output and high energy costs, are outside the control of the CBN,” he said.

Uwaleke urged the MPC to seize the opportunity of its forthcoming meeting to signal readiness to support output growth.

“This can be done through policies geared towards fostering a low interest rates environment while keeping an eye on inflation, using a mix of hererodox measures,” he said.

According to Mr Okechukwu Unegbu, a past President of the Chattered Institute of Bankers of Nigeria (CIBN), the MPC should lower the MPR to allow easy access to credit for the productive sector of the economy.

Unegbu said that since lending rate in banks is dependent on the MPR, lowering it would be more beneficial for economic growth by allowing easier access to funds for the manufacturing sector and for small businesses.

He, however, said that the idea of DMBs using the MPR to decide their lending rates should also apply to interest rates on savings.

“The banks use the MPR to increase their lending rates, but savings interest rates are always very low.

“Interest rates on savings should guide the banks on their lending rates. They are supposed to look at average interest rate on savings to consider their own lending rates.

“I expect the MPC to reduce the rates this time so that banks can reduce their lending rates in order to encourage lending to the productive sector of the economy,” he said.

Mr Yemi Kale, partner and Chief Economist at KPMG Nigeria, said that the MPC was facing a dicey meeting since the suspension of Emefiele.

According to Kale, economic growth is slow and fragile, and in need of liquidity.

“At the same, inflation rates are high and rising, and with the recent subsidy and FX reforms, inflation is almost definitely going to rise higher and all happening at a time confidence in its ability to control inflation is weak,” he said.

He said the inability of the CBN to control inflation had been largely due to the main drivers of inflation being structural and supply-based, which could not be controlled effectively with the money supply tools available to it.

He added that the recent growth in money supply following the various reforms would likely worsen inflation.

“Excess liquidity may also find its way into the FX market and put pressure on Naira, both at official and parallel markets.

“The MPC will therefore have a difficult decision on how to pull inflation down without hurting economic growth further, which further tightening might cause.

“However, I expect that the CBN will be more concerned about inflation being its core responsibility and will tighten the MPR further but release the Cash Reserve Ratio (CRR) to support the economy,” he said. (NAN)(www.nannews.ng)

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Edited by Idris Abdulrahman

Dangote, Niger govt partner on investment opportunities
Business

Dangote, Niger govt partner on investment opportunities

181 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 20th 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

 

Organisations demand tax for sugar-sweetened beverages
Economy/Business

Organisations demand tax for sugar-sweetened beverages

132 total views today
By Gami Tadanyigbe

The National Action on Sugar Reduction (NASR) in collaboration with Prof. Felicia Anumah Diabetes Centre have called on the Federal Government to implement sugar-sweetened beverages tax to help reduce diabetes and obesity in the country.
The organisations made the appeal on Thursday during a sensitisation walk/rally, health talk and press conference held at the University of Abuja Teaching Hospital (UATH), Gwagwalada.
Mrs Felicia Anumah, the Director, Centre for Diabetes Studies, University of Abuja, identified over-consumption of sugar as a major contributor to obesity, diabetes and tooth decay.
According to her, people who consume sugary drinks regularly have a 26 per cent greater risk of developing Type 2 diabetes than people who rarely consume such drinks, hence the need to impose tax on sugary products will cushion the effect.
“Obesity is a worldwide epidemic and is a major risk factor for the growing burden of Non-Communicable Diseases (NCDs), including diabetes, heart diseases and some cancers.
“In the past three decades, globalisation and urbanisation has led to a shift in food culture and convergence in consumption habits.
“In this ‘nutrition transition’, the consumption of foods high in fats, sugars, salt and sweeteners has increased throughout the developing world.
“This transition therefore is implicated in the rapid rise of obesity and diet-related chronic diseases, worldwide.
“Organisations (CSOs) advocating for policy measures to address the health risks of consuming SSBs. In December 2021, tax policy of 10% on SSBS was introduced via the Finance Act. Unfortunately, this has been suspended in June 2023.
“Sugar Sweetened Beverage Tax Policy is an anti-obesity, anti-diabetes policy,” Anumah, Prof. of Endocrinology and Diabetology, said

Besides, she defined sugary drinks as all types of beverages containing free sugars and include carbonated or non-carbonated soft drinks, fruit/vegetable juices, ready-to-drink coffee and flavoured milk drinks, among others.

However, the don maintained that evidence has shown that with respect to obesity, an effective starting point to reduce unhealthy food consumption will be through taxing of SSBs.
Anumah said: “There is therefore a need to combine programmes that target individual behaviour change with a fiscal policy such as excise tax on SSBs.”
The Chief Medical Director (CMD) of the hospital, Prof. Bisallah Ekele, commended the organisations for the initiative and called for the implementation of tax on sugary products to help reduce diabetes and obesity in the country.
Ekele, who was represented by the Chairman, Medical Advisory Committee (CMAC), Dr Bob Ukonu, called for speedy implementation, with efforts from the organisations to help reduce diabetes and obesity for healthy living. (NAN) (www.nannews.ng)

Edited by Muhammad Suleiman Tola

ICAN seeks to promote networking, empower members 
Economy/Business

ICAN seeks to promote networking, empower members 

144 total views today

By Ibukun Emiola
Dr Temitope Babajide, Chairman, Institute of Chartered Accountants of Nigeria (ICAN), Ibadan District Society, says the institute will promote networking and provide empowerment for its members.
Babajide stated this during a courtesy visit to Bakertilly Nigeria in Ibadan on Thursday.
She said that the association would bridge the existing gap between the older members and the younger ones to enhance inclusiveness toward building a strong district society.
While seeking the support of the company, Babajide said part of the five cardinal agenda of her administration would be members’ inclusiveness, welfare and empowerment.
“We want more members to come into the fold. We want to encourage members and have various activities that the young ones will be able to identify with.
“We intend to have a membership handbook and this will be launched at our annual dinner scheduled for December,” she said.
The News Agency of Nigeria (NAN) reports that the ICAN team was received by Senior Partner, Bakertilly Nigeria, Mr Mark Ariemuduigho, and other principal officers of the company.
Ariemuduigho said that the company would continue to support ICAN in achieving its objectives, as it had always done over the years.
He urged ICAN to reflect on the present economic situation and come up with innovations that would help its members to meet up with the challenges of the time.
“Bakertily has done its own bit to support the association and we will continue to do that. We will not relent in our efforts at seeing the council stand strong in Ibadan,” Ariemuduigho said.
According to him, the company will pay the subscription of its staffers who are ICAN members and grant them permission to attend its meetings.
The senior partner urged the institute to organise more technical sessions in order to stimulate members’ interest in joining the district.
Also, Prince Oyebade Oyedepo, a past chairman of institute and board member of Oyo State Anti-corruption Agency urged ICAN members to join the state government in its fight against corruption by reporting corrupt practices. (NAN) (www.nannews.ng)

Edited by ‘Wale Sadeeq

IMG rewards shareholders with N208.1m dividend
Business , Economy/Business

IMG rewards shareholders with N208.1m dividend

174 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

FAAC shares N907bn, improves June revenue to FG, others
Economy/Business

FAAC shares N907bn, improves June revenue to FG, others

142 total views today

By Kadiri Abdulrahman

The Federation Account Allocation Committee (FAAC) has shared a N907.05 billion June Federation Account revenue to the Federal Government, states and Local Government Councils (LGCs)

This was disclosed in a communiqué issued at the end of the FAAC meeting for July on Thursday in Abuja.

The meeting was chaired by the Accountant General of the Federation, Dr Oluwatoyin Madein.

According to the communiqué, the N907.05 billion total distributable revenue comprised distributable statutory revenue of N301.5 billion, distributable Value Added Tax (VAT) revenue of N273.23 billion, and Electronic Money Transfer Levy (EMTL) revenue of N11.44 billion.

It also included Exchange Difference revenue of N320.89 billion.

“In June 2023, the total deductions for cost of collection was N73.235 billion and total deductions for savings, transfers and refunds was N979.078 million.

“The balance in the Excess Crude Account (ECA) was 473,754.57 dollars,” it stated.

The communiqué stated that from the total distributable revenue of N907.05 billion; the federal government received N345.56 billion, the state governments received N295.95 billion and the LGCs received N218.06 billion.

A total sum of N47.48 billion was shared to the relevant states as 13 per cent derivation revenue.

“Gross statutory revenue of N1.152 trillion was received for the month of June.

“This was higher than the sum of N701.787 billion received in the previous month by N451.134 billion.

“From the N301.501 billion distributable statutory revenue, the federal government received N146.710 billion, the state governments received N74.413 billion and the LGCs received N57.370 billion.

“The sum of N23.008 billion was shared to the relevant States as 13 per cent derivation revenue,” it said.

The communiqué further stated that the gross revenue available from VAT was N293.411 billion, adding that it was higher than the N270.197 billion available in the month of May by N23.214 billion.

It said that the federal government received N40.984 billion, the state governments received N136.613 billion and the LGCs received N95.63 billion from the N273.23 billion distributable VAT revenue.

“The N11.436 billion EMTL was shared as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion and the LGCs received N4.003 billion.

“From the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion, the state governments received N79.204 billion, the LGCs received N61.063 billion.

“The sum of N24.470 billion was shared to the relevant States as 13 per cent mineral revenue,” it said.

It stated that Companies Income Tax (CIT), Import and Excise Duties, VAT, and Oil and Gas Royalties all increased significantly, while Petroleum Profit Tax and EMTL decreased considerably. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa

Experts harp on effective fiscal, monetary policies for economic stability
Economy/Business

Experts harp on effective fiscal, monetary policies for economic stability

184 total views today

By Rukayat Moisemhe

Experts have stressed the need for proper management of fiscal and monetary challenges of the country for macroeconomic stability.

They spoke at the Annual Public Lecture of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) hybrid event on Thursday in Ibadan.

The News Agency of Nigeria (NAN) reports that the event had as its theme :”The Dynamics of Leadership in Fiscal and Monetary Policies: The Central Bank of Nigeria in Perspective.”

Fiscal policy involves the use of government spending and revenue to impact several aspects of the economy while monetary policy is used to manage economic fluctuations and achieve price stability.

Godwin Oyedokun, Professor, Accounting and Financial Development, Lead City University, Ibadan, said overarching goal of monetary and fiscal policies would create an economic environment for stable and positive growth and stable and low inflation.

Oyedokun stated that in this current complex and interconnected global economy, effective leadership in fiscal and monetary policies played a crucial role in shaping a nation’s economic trajectory.

He noted that the CBN’s role in fiscal and monetary policies entailed collaboration and coordination with other financial regulatory bodies, government agencies, and international institutions.

He said other roles include actively engaging with stakeholders to share insights, exchange knowledge, and promote policy coordination and fostering a cohesive approach towards achieving common economic objectives.

The Prof said challenges affecting the CBN role include external factors such as fluctuating oil prices, global economic conditions, and geopolitical developments pose uncertainties that require astute leadership.

He added that addressing structural issues, fostering financial inclusion, and ensuring inclusive growth remained critical areas where leadership efforts need to be intensified.

On the way forward, Oyedokun said the CBN should focus on strengthening its institutional frameworks, investing in capacity building, and leveraging technological advancements.

“CBN could foster a culture of innovation, continuous learning, and adaptability, enhance its leadership capabilities, effectively respond to emerging trends, and drive sustainable economic growth.

“CBN should embrace transparency, accountability, collaboration, and innovation; navigate the dynamics of leadership in fiscal and monetary policies, contribute to Nigeria’s economic development and welfare of its citizens,” he said.

Dr Nkemdilim Iheanachor, Senior Lecturer, Strategy and International Business, Lagos Business School (LBS), stressed the need for reform of key institutions crucial to the implementation of economic policies and reforms.

Iheanachor said that previous policy reforms had proven not to be enough hence the need for institutional reforms, addressing of social defects and liberation from state capture.

He said Nigeria’s structural issues include anaemic growth, misallocation of resources, bottlenecks, inflation, poverty and lack of transparency within institutions.

Iheanachor noted that recent major policy pronouncements by the President Bola Tinubu led administration was remarkably rapid but needed speed on institutional reforms.

“Economic reforms must be accompanied with social safety nets and targeted support for vulnerable population to mitigate the negative social consequences that may erupt from policy changes.

“Change in market structure without alteration in foreign exchange supply will keep the market in disequilibrium.

“The next steps include tightening monetary conditions, eliminating foreign exchange restrictions (ban towards the rate of inflation on 43 items on the I& E window).

“Nigeria must begin to churn out export-oriented policies, eliminate structural bottlenecks that constrain production and export activities,” he said.

Mrs Funmilayo Ekundayo, President, ICSAN, said the public lecture was an established platform through which the institute contributes to national discourse on trending issues of national or global significance.

Ekundayo stated the event’s theme was underscored by recent experiences in the CBN’s implementation of some important macroeconomic policies and its attendant multifarious hiccups.

She noted that as a governance body, the institute was concerned about how the CBN conceives and implements its monetary policies because of its far-reaching consequences for the nation’s growth and development.

“It is for these reasons that we have assembled at this year’s public lecture, resource persons who both understand the dynamics of the CBN’s roles and responsibilities and the implication of its policies on economic sustainability.

“By the very fact of their deep understanding, the faculty we have here today are able to offer pragmatic recommendations to guide and orientate the apex bank in its policy formulation and implementation for our collective interests.

“Questions like “How do we manipulate the macroeconomic variables to achieve a stable economy? How do we tame the monster of continuous rise in headline inflation? among others would be addressed satisfactorily today.

“We believe that by such interrogations of our realties, we can achieve some common well thought-out consensus on how to move our country forward economically,” she said. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

Rising cost of living impacting on poverty, production index — NECA
Economy/Business , General News

Rising cost of living impacting on poverty, production index — NECA

170 total views today

 

By Esenvosa Izah

 

The Nigeria Employers’ Consultative Association (NECA) has said the rising cost of living in the country is already having a negative impact on the country’s poverty and production index.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, expressed concerns in a statement on Thursday in Lagos.

“In the last one year, we have witnessed perpetual rising inflation, commodity price instability, reduced industry capacity utilisation and a gradual dwindling of the purchasing power of Nigerians, all of which has further dragged many enterprises out of existence and Nigerians below the poverty lines.

“While the current administration has lined out policy plans to improve the living standards of the masses, such plans must be backed by deliberate and quick responses.

“As it is obvious to all, there is rising agitation owing to the rising cost of living, compounded by the increasing cost of Premium Motor Spirit and threat of increment in electricity tariff among others, “ he said.

He commended the removal of fuel subsidy, renewed efforts at curbing oil theft, and ongoing attempt to reform the tax administration system with the appointment of Mr Taiwo Oyedele as Chairman of the Tax Reform Committee.

The director general, however, said it was important that government took more drastic steps to stop the slide into hopelessness by Nigerians and organised businesses.

“It is instructive to note that businesses and households are currently being over-stretched beyond their shock buffers.

“Already, there is a drag on business operation as production plans are persistently displaced by frequently changing factor costs, and households are constantly adjusting consumption to accommodate their inadequate real income, “ he said.

Oyerinde, therefore, urged government to urgently take deliberate actions to mitigate the persistent rise in inflation, so as to address, what he described as, the fast-accelerating cost of living in the country.

According to him, such actions may include price stability mechanisms, periodic feedback on the progress of the ongoing work at the refineries, reversal of the Value Added Tax on AGO, and suspension of the planned upward review of electricity tariff.

“More importantly, government must conclude all palliative measures, which we expect should provide some immediate respite to both individual and corporate citizens, “ the NECA boss said. (NAN)

 

Edited by Oluwole Sogunle

Experts task businesses on cyber security investment
Business , Defence/Security

Experts task businesses on cyber security investment

221 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
Business , Health

Adeosun urges CBN to reduce CRR of commercial banks

176 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.

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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.

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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

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