Economy
Redefining Trade Relations Between Nigeria and China
By Stanbic IBTC Bank
Stanbic IBTC Holdings, a member of Standard Bank Group, has continued to serve as a connecting link in facilitating trade transactions between Nigerian and Chinese importers, thereby fostering international trade.
As part of its efforts to boost trade relations between the two nations, Stanbic IBTC Holdings, through its banking subsidiary, has developed several solutions for boosting favourable business deals and trade relationships between Nigerian business owners and their Chinese counterparts.
In August 2022, the organisation held its 2022 Africa-China Trade Expo to promote trade relations and boost economic prosperity in the two regions.
The expo themed Synergy for Growth featured a masterclass and an Africa-China Trade Solutions (ACTS) presentation. One of the initiatives through which Stanbic IBTC Bank has been redefining trade relations between Nigeria and China is the ACTS propositions, aimed at allowing African enterprises to explore new markets, expand their customer base and create a mutually beneficial relationship between the two countries.
Ade Otukomaya, Head, Africa China Banking, Stanbic IBTC Bank, said that the financial institution was always exploring opportunities to add value to its clients’ businesses.
He said: “The Nigerian agricultural sector is replete with diverse opportunities. Being able to effectively harness these opportunities will drive agricultural development and expand agricultural export. Overall, agriculture experts are of the view that the country has the potential to generate substantial FX inflows for the country, thereby reducing trade deficits.”
As part of the ACTS offerings, the Standard Bank China Trade Desk sources for capable Nigeria exporters of produce and finished products in demand by the Chinese public. The Trade desk receives demands from Chinese entities who want to order large quantities of agro-allied products from Nigeria. The desk also matchmakes buyers and suppliers under favourable prices, conditions and general terms in line with approved protocols between the two countries.
With the increasing demand for Nigerian goods on store shelves in China for the Chinese public to consume, Stanbic IBTC has developed a partnership with Pacific International Lines, a logistics service provider that will transport goods sourced from Nigerian exporters for export to China.
“Stanbic IBTC is harnessing these opportunities that Nigeria possesses by providing a platform for Nigerian and Chinese businesses to flourish. We have established market leadership in several financial services segments, our goal is to continually leverage our connections, knowledge, and experience in delivering impeccable service and value that makes our customers not just get ahead but emerge leaders in their respective business segments,” Ade added.
Despite the growth in trade, most Nigerian importers still face a myriad of challenges that limit their ability to order goods and services from a handful of trusted Chinese suppliers. In addition to that, language and cultural barriers also pose a challenge for African importers and Exporters when travelling and negotiating supplier agreements in China.
Through ACTS Solutions, Stanbic IBTC, via its parent company, Standard Bank of South Africa, has leveraged its partnership with the Industrial and Commercial Bank of China (ICBC) to connect African importers, especially in Nigeria, with a dedicated trade agent in China as well as enable them to tap into the vast opportunities that China presents as a trading partner.
Apart from eliminating language barriers, ACTS aims to assist Nigerian importers source and validating quality goods, safely and efficiently from the most competitive and verified suppliers in China.
The Agent Zhejiang International Trading Supply Chain Company Limited, otherwise known as Guomao, ensures that Nigerian importers get the best deals in areas such as sourcing the right suppliers for their businesses, negotiating the best prices and trade conditions on behalf of the clients, providing translators to facilitate trade negotiations and discussions, validate and ensure the quality of goods from the suppliers meet the agreed and required standards by clients, handle the shipping logistics and delivery to destination, depending on clients’ preference, amongst others.
Through this solution, Stanbic IBTC remains committed to connecting Nigerian and Chinese businesses, which will boost the volume of trade between both countries.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
For the fourth consecutive trading session, the Nigerian Exchange (NGX) Limited closed higher on Friday by 0.63 per cent on sustained renewed buying pressure.
Apart from the energy and industrial goods sectors which closed flat, every other sector ended in the green territory, according to data obtained from the bourse.
Business Post reports that the insurance index appreciated by 1.52 per cent, the banking space improved by 0.63 per cent, and the consumer goods counter expanded by 0.46 per cent.
As a result, the All-Share Index (ASI) gained 617.47 points to settle at 99,378.06 points compared with the preceding day’s 98,760.59 points and the market capitalisation went up by 375 billion to close at N60.242 trillion, in contrast to Thursday’s closing value of N59.867 trillion.
The volume of transactions on Customs Street yesterday grew by 11.13 per cent to 544.2 million shares from the 489.7 million shares transacted a day earlier.
The value of transactions increased during the session by 49.30 per cent to N10.6 billion from N7.1 billion and the number of deals went up by 1.93 per cent to 8,464 deals from the 8,304 deals posted in the previous trading session.
The busiest equity for the trading day was Japaul with the sale of 71.7 million units valued at N158.0 million, eTranzact exchanged 70.7 million units worth N477.5 million, Tantalizers sold 57.3 million units for N101.2 million, FCMB traded 33.0 million units worth N297.3 million, and Universal Insurance transacted 27.1 million units valued at N9.6 million.
A total of 36 stocks ended on the gainers’ chart, while 15 stocks finished on the losers’ table, indicating a positive market breadth index and strong investor sentiment.
The trio of Aradel Holdings, Ikeja Hotel and Caverton gained 10.00 per cent each to trade at N550.00, N8.80, and N1.98, respectively, as Africa Prudential rose by 9.87 per cent to N17.25 and Golden Guinea Breweries soared by 9.64 per cent to N8.64.
On the flip side, Austin Laz lost 10.00 per cent to close at N1.62, ABC Transport crashed by 8.00 per cent to N1.15, Royal Exchange slumped by 7.69 per cent to 60 Kobo, Secure Electronic Technology plunged by 5.26 per cent to 54 Kobo, and The Initiates crumbled by 4.26 per cent to N2.25.
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