Economy
NEXIM Bank, Indonesia Eximbank Fortify Bilateral Ties
By Modupe Gbadeyanka
In a bid to enhance cooperation and forge stronger relationships in promoting regional and global trade and investment between Indonesia and Nigeria, a Memorandum of Understanding (MoU) has been signed between the Indonesia Eximbank and the Nigerian Export-Import Bank (NEXIM Bank).
The MoU, according to a statement issued by the Head of Corporate Communication Department at NEXIM, Chinedu Moghalu, is strictly limited to the expressed desires of the parties to enhance cooperation in respect of the matters set out in the document. It is not intended to impose or create any legally binding rights or obligations on the parties.
It is also to foster trade, technical assistance, experience and information sharing, including other investment relations in a way that would promote financing, guarantees, insurance and counter trade instruments to increase transactions between Indonesia and Nigeria.
Managing Director of NEXIM, Mr Abba Bello, expressed his delight that both banks were able to quickly come to terms on the Articles of the MoU considering the brevity of time spent in the negotiations, showing commitment on both sides to work towards a more mutually beneficial relationship.
He further indicated that by virtue of both banks’ membership of the Global Network of Eximbanks and Development Finance Institutions (DFIs) G-NEXID, he hopes that the intentions expressed in the MoU would be much easier to pursue.
NEXIM Bank has been the honorary president of G-NEXID since May 2015.
Mr Abba informed the Indonesia Eximbank team that NEXIM Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector.
The bank, he said, pursues this through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.
Presently, its current strategic initiatives are geared towards boosting job creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (MASS) sectors in alignment with the efforts of the federal government to diversify the economy, create jobs and increase both the value and sources of foreign exchange earnings in the country.
Mr Bello assured his Indonesian counterpart that NEXIM would do all within its mandate in regard to the intentions expressed in the document. Concluding, he expressed his hope that the MoU will strengthen Nigeria’s existing bilateral relations with Indonesia through increased technical assistance, promotion of non-oil export trade and other economic activities and thereby provide more support to the Government’s efforts to diversify the economy.
In his response, the Managing Director of Indonesia Eximbank, Mr Dwi Wahyudi, expressed his satisfaction that the two institutions have established a viable intention to forge strong collaborative relationship as signalled by the MoU.
Mr Wahyudi expressed hopes that the MoU signed with NEXIM Bank would spur meaningful bilateral cooperation between the two countries for the promotion of the intentions expressed in the Articles.
This becomes more germane given the readiness of the Government of Indonesia to enhance more mutually beneficial economic relations with Nigeria as indicated during the official visit of the Minister for Foreign Affairs of the Republic of Indonesia, Mrs Retno Marsudi, in June this year.
Mr Wahydi disclosed that the Indonesia Eximbank was incorporated by virtue of Law Number 2/2009, as an export credit institution that provides export financing in the form of security, insurance and consultation services.
Like NEXIM, the Indonesian Eximbank supports its Government’s economic development aspirations by providing financing for (a) businesses that are into production of goods and services for export; (b) viable projects that are not attractive to commercial banks but have the prospects to increase the national export base; and (c) providing assistance to overcome the obstacles facing banks or other financial institutions in providing financing for exporters through various export credit instruments.
By Adedapo Adesanya
Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.
The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.
During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.
This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.
Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.
At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.
Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.
The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.
As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.
By Adedapo Adesanya
The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.
Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.
At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.
Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.
Also, a stronger greenback has generally put significant pressure on emerging-market currencies.
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).
The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.
If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.
At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.
On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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