Banking
Union Bank, NIRSAL Launch N10b Finance Package
By Modupe Gbadeyanka
A N10 billion financial scheme to assist farmers and agro-based companies in the country have access to funds to grow their businesses has been launched by Union Bank of Nigeria and the Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL).
At the launch of the scheme last Friday, Group Managing Director of Union Bank Plc, Mr Emeka Emuwa, explained that the participation of NIRSAL in the agriculture business was a soothing development because, in the past, lending to the sector was a tortuous experience since banks could not effectively monitor farmers’ investments and gauge the risks.
“You could not see what you were investing in and it made funding the greatest challenge of the agricultural sector in Nigeria.
“Banks were reluctant to invest in the sector. But now, NIRSAL has come to shine more light on it. Commercial banks and NIRSAL have roles in the agriculture value chain and that sector holds the highest percentage of Africa’s labour force at 65 percent.
“In Nigeria, agriculture holds 50 percent of the employment. It was responsible for 24 per cent of all contributions to our GDP in 2016.
“That means it’s a major plank of in the success of the Economic Recovery and Growth Plan (ERGP). To fully diversify our economy, agriculture must play a vital role.
“Our focus is market expansion and to help curb post-harvest losses. We also want to support small holder farmers to access needed markets. We’ve 180 million people in Nigeria. We have to create opportunities to feed ourselves,” Mr Emuwa explained.
On his part, Managing Director of NIRSAL, Mr Aliyu Abdulhameed, noted that the deal will create massive employment, guarantee food security and generate foreign exchange via exports.
He said various arms of agriculture provide excellent investment opportunities for the government, individuals and corporate bodies.
“There are several agriculture value chains that this N10 billion can make flourish. We can acquire 830 brand new tractors, generate 330,000 direct jobs and 1.5 million indirect jobs and cultivate 300,000 hectares of land.
“We have 10 categories of agriculture that includes have ruminants farming, export crops, plantations like cocoa and rubber, poultry, etc. We have 30 commodities in all.
“Our role in NIRSAL is to de-risk the entire transaction and ensure those enjoying the loan from Union Bank have the capacity to pay back. We look at various factors before giving out the loan.
“More financing will come and this launch is part of NIRSAL’s mandate to make banks put more money into agriculture. We have implemented risk management framework in the agriculture value chain.
“We have risk management tools and we keep our eyes on all the projects to ensure success. That is a huge off the backs of the banks.
“The Union Bank’s N10 billion loan will benefit agriculture mechanisation, primary production, input supply, logistics, processing, storage and post storage handling,” Mr Abdulhameed stated.
Managing Director of Development of Nigeria (DBN), Mr Tony Okpanachi, who was also at the event, described the deal as vital.
“When we say we are diversifying the economy, it simply means increasing the contributions of agriculture to the economy. And by that, it means increase the funding of agriculture. “DBN is a wholesale bank.
“We’ve been planning on how to impact the agricultural sector. We will work with NIRSAL and provide funding. We need to bring more financial institutions onboard,” Mr Okpanachi said.
Banking
Shettima Promises to be “Chief Promoter” of Moniepoint
By Modupe Gbadeyanka
Nigeria’s Vice President, Mr Kashim Shettima, has expressed his delight over the unicorn status attained by Moniepoint Incorporated in October 2024 after it secured a $110 million funding package from Google.
Speaking when the company paid a courtesy visit to him at the Presidential Villa recently, the VP said he was happy with the growth trajectory of the financial technology (fintech) company, charging the team not to rest on its oars.
He promised to be the “chief promoter” of Moniepoint because the firm has become the pride of the country and must be supported by all.
Mr Shettima urged the company to continue expanding its global footprint, referencing his ongoing support for similar initiatives such as Amal Hassan’s Outsource to Nigeria project.
The Vice President described Moniepoint as a “kaleidoscope of colours” because of the diversity of its team, saying it reflects the beauty of Nigeria’s multicultural and multi-regional identity.
He was particularly pleased with the inclusion of individuals from various regions and backgrounds, including a notable representation of women in leadership and operational roles.
However, he charged the organisation and others to ensure stronger auditing measures to prevent misuse of the platform, especially by fraudsters and criminal elements, tasking them to remain vigilant and proactive in addressing these challenges.
Earlier, the chief executive of Moniepoint, Mr Tosin Eniolorunda, thanked the federal government for its dedication to digital innovation and financial inclusion.
He emphasized Moniepoint’s commitment to Nigeria’s financial ecosystem, stating that the fintech giant has grown into Africa’s latest unicorn this year, a testament to its resilience and innovation.
“At Moniepoint, we are big believers in driving collaborations across the entire eco-system and this is premised on collaboration being the cornerstone of progress.
“Our engagement here underscores our intentionality to enhance government business relationships in a way that powers the dreams of millions of many more Nigerians.
“Together, we can unlock opportunities, transform lives, and build a more inclusive economy for all,” Mr Eniolorunda, who led the team comprising the Managing Director of Moniepoint Microfinance Bank, Mr Babatunde Olofin; the Vice President for Corporate Affairs at Moniepoint, Didi Uwemakpan; the SVP for Investor Relations and M&A, Ross Strike; the Head of Partnerships, Efemena Ogie; the Regional Manager for North West, Abdulmumin Tijjani; and the Partner at Lightrock Global, Ravi Sharma, said.
Banking
FX Trading: CBN Sets $100,000 Minimum Trade for Banks on EFEMS
By Adedapo Adesanya
The Central Bank of Nigeria has set a minimum trade value of $100,000 for interbank foreign exchange trading via the Electronic Foreign Exchange Matching System (EFEMS), which is set to go live on December 2.
This was contained in a new directive dated November 25, 2024, and signed by CBN’s Director of the Financial Markets Department, Mrs Omolara Duke.
The circular also noted that the development is part of efforts to ensure transparency, efficiency, and compliance within Nigeria’s FX market.
The EFEMS is designed to streamline interbank FX trading, reduce counterparty risks, and ensure adherence to CBN regulations.
The statement also said CBN has designated Bloomberg’s BMatch as the official order-matching platform for interbank transactions, with trading hours set between 9:00 am and 4:00 pm West Africa Time on business days.
The apex bank also said the $100,000 minimum tradable amount comes with incremental clip sizes of $50,000.
The EFEMS is also limited to spot FX transactions involving the Nigerian Naira and the United States Dollar. This means transactions occur “on the spot” or close to the trade date.
The CBN, however, retained the discretion to introduce other currency pairs when deemed necessary.
The guidelines document read, “All trades consummated on EFEMS are binding unless cancelled by mutual agreement of both parties with written approval from the CBN.
“The minimum tradable amount is US$100,000.00, with incremental clip sizes of US$50,000.00.
“Participants must set credit and settlement limits for other counterparties in the system. Transactions exceeding these limits will not be executed.
“Participants must have adequate credit and settlement limits set for the CBN as its counterparty bank.
“Participants are required to comply with the Nigerian Foreign Exchange Code and other CBN regulations.”
The apex bank noted that participation in the EFEMS is limited to authorised dealer banks while other institutions wishing to join the platform must first obtain prior approval.
These entities are also required to execute agreements with the CBN-approved platform provider, maintain accurate profiles, and operate within prescribed credit and settlement limits.
Withdrawal from the platform must be preceded by a 30-day notice, along with the resolution of any outstanding obligations.
Also, trades conducted via the platform will remain anonymous until matched. Counterparty details will only be revealed once transactions are concluded and are in line with settlement protocols.
Transactions exceeding set limits or conducted outside EFEMS parameters must be reported promptly and logged onto the FX blotter within 10 minutes.
The CBN emphasised that it will closely monitor all transactions on EFEMS to ensure market integrity and transparency.
Participants are also required to submit daily reports detailing trade volumes, settlement statuses, and counterparties.
The CBN discloses that it also reserves the right to publish aggregated or disaggregated trade data for market analysis, subject to confidentiality agreements.
Any violations of the EFEMS guidelines or related regulations will attract strict penalties, including the suspension or revocation of access rights.
The CBN further stated that it will periodically review the platform’s operations to ensure efficiency and compliance with its directives.
Banking
No Need to Worry, Your Funds Safe With us—Access Bank Assures Customers
By Aduragbemi Omiyale
Access Bank Plc has assured customers that their funds are safe with the company, stressing that there’s nothing to worry about.
The lender gave this assurance in reaction to a video making the rounds on social media that about N500 million belonging to a customer was missing.
The financial institution described this allegation as “baseless,” denying any involvement in “any unethical behaviour.”
“Our attention has been drawn to a video on social media wherein allegations of missing funds and unethical behaviour have been made against Access Bank PLC.
“First and foremost, we wish to emphasise that the safety and security of our customers’ funds are core priorities which we take seriously. Second, Access Bank Plc does not engage in or condone any unethical behaviour.
“In the instant case, the allegations of missing funds in the Bank are most untrue and baseless.
“There is no N500 million or any other fund or amount missing from the subject customer’s account or any other customer’s account with us.
“We and other independent stakeholders in the banking industry have thoroughly investigated these allegations and independently arrived at the same conclusions.
“Access Bank PLC operates with the highest ethical standards, and we protect our customers’ interests whilst also respecting privacy laws.
“Consequently, whilst we have engaged and will continue to engage with our customers, we must advise the public not to rely on or believe sensational and unverified claims that are designed to titillate and mislead the public,” a statement from the firm stated.
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