Economy
BoI Reiterates Financial Support to Manufacturers Under AfCFtA
By Adedapo Adesanya
The Bank of Industry (BoI) has urged manufacturers to embrace the various available financing options aimed at driving the sector’s competitiveness under the African Continental Free Trade Area (AfCFTA).
This was the centre focus at the 52nd Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN) Apapa Branch, Lagos, on Tuesday, themed Financing Nigeria’s Manufacturing Sector for Economic Growth.
Mr Olukayode Pitan, the Managing Director of BoI, said that seamless access to finance was imperative to sustain the manufacturing sector, considering its contribution to the economic diversification drive of the nation.
Mr Pitan, represented by Mr Isa Omagu, General Manager for Large Enterprises at BoI, said the bank was poised to support manufacturers and committed to providing financing solutions to sustainable businesses.
He urged manufacturers to improve their ability to have access to finance for competitive advantage by keeping their businesses in order, adopting digital solutions to improve processes, and avoiding fraudulent business ideas.
He listed some of the lingering problems affecting productivity in the manufacturing sector, including the inability to access finance, infrastructural deficiencies, high energy costs, and high lending rates, among others.
Mr Pitan noted that accessing finance remained a major challenge facing manufacturers due to poor stock-keeping practices and lack of credit history, structure, and collateral.
He said the best financing options for Nigeria manufacturers to compete effectively under AfCFTA remained through Development Financial Institutions (DFIs) interventions such as BoI and African Export-Import Bank (Afreximbank).
He added that the bank had developed products to provide equipment financing and working capital for Micro, Small, and Medium Enterprises (MSME) in target sectors at less than 10 per cent interest rate per annum.
“Financing is a key consideration for Nigerian manufacturers to ensure business survival and profitability as the sector can play a key role in enabling the country’s industrialisation and economic development drive.
“Our business model reflects our goal to drive development through financial and advisory support to all customer levels with dedicated teams for micro, small, and medium enterprises, youth, and women-led businesses.
“Key issues considered are relatively low-interest rate, MSME focus, innovative financial solutions, job and value creation, sustainability and societal impact,” he said.
On the part of the Lagos State government, Mrs Ososanya, Permanent Secretary, Lagos State Ministry of Commerce, Industry and Cooperatives, who represented the Governor of Lagos, Mr Babajide Sanwo-Olu, said it was imperative for manufacturers to explore various avenues of financing to bolster competitiveness, sustainability and harness the full potentials of the AfCFTA.
She said that grants such as export programme grants, market exploitation grants, and business attraction grants among others were available for manufacturers to explore.
She said to attain and maintain competitiveness under AfCFTA, the state would continue to foster an environment that facilitates seamless access to financing options tailored to the unique needs of Nigerian manufacturers.
“Manufacturers can also take advantage of traditional sources such as venture capital, private equity, and export financing to support and facilitate international trade and exports.
“There is a need to collaborate with the finance sector, manufacturers, private sector, and government establishments,” she said.
On his part, Otunba Francis Meshioye, President, MAN, said the recent economic developments brought about government policies such as floating of the naira, removal of fuel subsidy, and increase in interest rate, made the theme of the meeting apt and timely.
He said the association would continue to give priority to issues affecting the sector while striving to ensure that government provides the needed environment for our investments to thrive.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited remained in the green territory on Wednesday after it rallied by 0.31 per cent on the back of sustained bargain-hunting activities by investors.
Business Post reports that all the key sectors of the market closed higher at midweek as a result of the renewed interest in local equities.
Data showed that the energy index appreciated by 2.59 per cent, the insurance space grew by 2.34 per cent, the industrial goods sector improved by 0.15 per cent, the banking counter expanded by 0.06 per cent, and the consumer goods industry rose by 0.04 per cent.
At the close of business, the All-Share Index (ASI) gained 302.71 points to settle at 98,509.68 points compared with Tuesday’s closing value of 98,206.97 points and the market capitalisation added N183 billion to close at N59.715 trillion versus the preceding day’s N59.532 trillion.
It was observed that the level of activity yesterday waned as the trading volume, value and number of deals decreased by 65.93 per cent, 49.22 per cent, and 12.70 per cent, respectively.
On Wednesday, a total of 320.1 million stocks valued at N6.5 billion were transacted in 7,943 deals, in contrast to the 939.4 million stocks worth N12.8 billion traded in 9,098 deals.
The busiest equity at midweek was eTranzact, which transacted 70.3 million units for N474.2 million, Universal Insurance traded 23.8 million units worth 8.1 million, Zenith Bank exchanged 21.2 million units valued at N933.5 million, FBN Holdings sold 18.6 million units worth N491.2 million, and UBA traded 14.0 million units valued at N465.8 million.
At the close of transactions, 34 shares ended on the gainers’ log and 17 shares finished on the losers’ chart, representing a positive market breadth index and strong investor sentiment.
Africa Prudential gained 10.00 per cent to quote at N14.30, Conoil also improved by 10.00 per cent to N352.00, and RT Briscoe expanded by 10.00 per cent to N2.42, as Golden Guinea Breweries jumped by 9.95 per cent to N7.18, while NEM Insurance grew by 9.74 per cent to N10.70.
However, Julius Berger lost 10.00 per cent to close at N155.25, Secure Electronic Technology shed 9.52 per cent to trade at 57 Kobo, Multiverse declined by 7.63 per cent to N5.45, Haldane McCall tumbled by 6.07 per cent to N4.95, and Honeywell Flour crashed by 5.62 per cent to N4.70.
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