Connect with us

Business

Banks Disburse N109bn To 20 Firms

Published

on

Governor of the Central
Bank of Nigeria (CBN), Mr. Lamido Sanusi, has said that 11 deposit money banks have so far disbursed the sum of N109.3bn to 20 companies from the N300bn Power and Airlines Intervention Fund provided by the CBN in 2010.
Sanusi, who stated this in a keynote address at the second biennial regional conference of the West African Institute for Financial and Economic Management in Lagos on Monday, said the disbursement was meant to fast-track the development of electric power projects in the country.
The two-day conference entitled, ‘Financing infrastructure for sustainable development in West Africa’, was attended by governors and top officials of central banks in the region.
Sanusi said the provision of the much needed long tenor, fixed interest fund through the N300bn PAIF was essential in catalysing private sector investments in the power sector.
The CBN governor said, “The CBN has provided the much needed long-tenor, fixed and single-digit interest rate funds for power investments through the N300bn Power and Airlines Intervention Fund in March 2010.
“This is to fast-track the development of electric power projects through the provision of the much needed long-tenor, fixed interest funds to catalyse private sector investments in the power sector. As of September 30, 2013, the sum of N109.3bn has been disbursed to 20 companies by 11 deposit money banks.
“The fund has, among other things, financed the construction of 125-kilometre gas-to-power pipeline and the generation of about 800MW of power, mostly by manufacturing companies principally to guarantee stable and reliable power supply, and to free the national grid to other users.”
The CBN governor said the power sector privatisation was a critical component of the present administration’s Transformation Agenda and, as such, the central bank was playing a prominent role to ensure its success.
As a result, he said the CBN in 2011 also approved the grant of $10m to the Bureau of Public Enterprises to support the engagement of human resource and actuarial valuation advisers for the successor companies of the Power Holding Company of Nigeria.
The CBN boss said the $10m grant was also meant to fund the activities of the Federal Government’s team that was negotiating the severance liabilities of the PHCN workers with the unions.
The Central Bank, Sanusi recalled, also financed the drafting of the National Infrastructure Financing Policy in 2012, noting that the thrust of the policy was to provide a framework for leveraging private finance for infrastructure development.
He said the infrastructure policy was meant to promote the involvement of specialised funds and multilateral agencies in the financing of development projects; diversify and develop non-bank sources of long-term finance for infrastructure financing; and recommend incentives that would spur local and international project developers and financiers to invest in infrastructure in the country.
A number of initiatives were recommended by the infrastructure policy, according to the CBN governor, who listed them to include the implementation of an infrastructure project development facility meant to finance the development of a pipeline of bankable Public-Private Partnership projects; and the establishment of a government resource fund as an independent source of funds for providing direct government support to infrastructure projects.
Others are the establishment of long-term refinancing mechanisms for infrastructure assets; the provision of fiscal incentives to designated infrastructure projects; and the the establishment of a clear legal and regulatory framework; and development of standardised procurement process for private financing of infrastructure.

Continue Reading

Business

Traders Protest FG’s Move To Restore Festac Town

Published

on

The move by the Federal Government to restore Festac Town in Lagos to its original status has sparked up protest among traders occupying Agboju Amuwo Planks and Building Materials Market.
The traders on Wednesday, protested at the FHA office in Festac Town against the demolition of their market, following the demolition of illegal structures by the Federal Housing Authority (FHA) ahead of the restoration. 
The Tide recalls that there was a petition to the Minister of Works and Housing, Mr Babatunde Fashola, in 2020 about illegal structures that had taken over Festac Town.
Speaking at a stakeholders’ meeting on the restoration of Festac town organised by FHA, last year, its South-West Zonal Manager, Mr Akintola Olagbemiro, said, “This year, we commenced the restoration of Festac town, following the consent judgement from the court against illegal occupants of Festac land.
“Our action is to save the residents from the insecurity that has taken over the entire Festac town as a result of illegal structures everywhere”.
The chairman of allottees of First Gate to Third Gate, Mr Kole Olatunji, in his remarks at the meeting said the land from First Gate to Third Gate was allocated between 1985 and 1999, noting that with the consent judgment, original owners of the land as allocated should take over their plots.
But the chairman of plank market, Muhammed Bello, protested the seven-day notice given to traders to vacate the place without alternative arrangements.  
Bello said: “How do they expect us to remove our wares in seven days?
“What we want is that they should allow us to remain there and we will pay whatever amount they ask us to pay”.
Speaking in the same vein, the chairman of Cane Chair and Furniture Association, Emmanuel Okoye said: “We need freedom. Let them tell us where they want us to stay. That place was swampy. We filled the place with several millions of Naira which we got as loans.
“We also rely on loans to do our business. Whatever the government wants us to pay; we are ready to pay to remain there. We have been there for 27 years. What we lost to the demolition is over N300 million”.

Continue Reading

Business

Fuel Tanker Explosion Kills Five, Injures Two In Ogun

Published

on

No fewer than five persons were on Wednesday burnt to death, while two others sustained first degree of injury in a fuel tanker explosion at Ajilete, along Owode-Idiroko road, in Yewa South local government area of Ogun State.
Eyewitness accounts revealed that a truck bearing 33,000 litres of petroleum product was descending the steep portion of the road when its tank suddenly detached from truck’s body and tumbled to the ground with a bang.
The explosion, the witnesses said, killed five persons on the spot, while two other persons were injured.
The Tide learnt that the seven victims were all residents of the area where the accident occurred.
Confirming the incident, the Federal Road Safety Corps (FRSC) Commander, Idiroko Unit, Akinwunmi Olaluwoye, said five deaths were recorded in the accident which occurred at about 8.15 am on Wednesday. 
According to him, the remains of the dead had been claimed by their families.
He disclosed that a bus and a motorcycle were also caught in a web of the explosion and razed.
He said, “no vehicle rammed into the tanker. The tank dropped off from the back of the tanker and exploded. The number of persons involved are seven; five dead, two injured.
“The driver had taken away the head of the truck as at the time we got there. But we have allowed the police to take charge and handle that aspect”.

Continue Reading

Business

Travellers To Access $4,000  As CBN Boosts Forex Supplies

Published

on

Nigerians travelling abroad can now access a maximum amount of $4,000 foreign exchange from banks following the Central Bank of Nigeria’s (CBN) announcement to increase forex supplies.
The CBN had said in a recent statement that it had concluded plans to increase the amount of foreign exchange allocated to banks to meet legitimate needs.
This followed the warning by the CBN Governor, Mr Godwin Emefiele, to Deposit Money Banks to desist from denying customers the opportunity to purchase foreign exchange.
The purposes to access forex included Personal Travel Allowance, Basic Travel Allowance, tuition fees, and medical payments as well as Small and Medium Enterprises transactions or for the repatriation of Foreign Direct Investment proceeds, the CBN had stated.
Sources from some of the banks said those travelling on business trips could also access a maximum amount of $5,000 for each trip.
At a virtual Bankers’ Committee meeting last week, the bankers discussed how the CBN intended to assist with forex to ensure availability for the upcoming summer period and the return of students to school in September.
The CBN also said the BDCs would continue to have their weekly allocations.
The committee observed that the rates were going up.
It stated, “The CBN has said that all the banks must make availability at all times and anyone who wants to buy BTA, PTA, medical fees, student school fees and all the eligible invisible purchases to ensure that Nigerians are not forced to go and queue in the parallel market.
“So what the Central Bank is doing is to encourage all banks to make sure that there is available forex at all times, and that his information should be communicated on all our platforms.
“We are asking our customers to come to the branches and for BTA, for example, present the required documents, which are basically your international passport, your visa, your valid ticket and fill up the form in the bank.
“And what we have been instructed to do is ensure that we don’t turn anybody back and that we should request from the Central Bank once we exhaust the forex that we have.
“The idea is to have a hitch-free summer period and the resumption for children to go back to school. The idea is to ensure there is less pressure on the forex and then the rates will come down”.
Speaking during the virtual meeting, the Group Managing Director, Access Bank, Herbert Wigwe, said, “I think again as part of the Central Bank’s role in terms of price stability and the need to support small and medium enterprises, there was highlight of the need for banks to go and support SMEs who import small raw materials for them to set up their businesses”.
The Managing Director, Ecobank, Patrick Akinwuntan, said, “All banks are available to ensure forex need is met.”
Managing Director, Sterling Bank, Abubakar Suleiman, said the CBN had provided sufficient foreign exchange to meet the needs of all legitimate Nigerian travellers and therefore, the idea of going to any other market should not arise at all.

Continue Reading

Trending