Business
Manufacturers Lament $2.4bn Outstanding Forex Claims
The Manufacturers Association of Nigeria (MAN) has stated that the failure of the Central Bank of Nigeria (CBN) to clear $2.4 billion worth of foreign exchange (forex) forward contracts has caused serious problems for manufacturers leading to a hike in the prices of products and closure of businesses.
Director General of MAN, Segun Ajayi-Kadir, who diclosed this in a statement, said the continued delay was eroding trust of investors in the bank to fulfill contracts signed with manufacturers in purchasing goods pegged in foreign currency.
The Tide’s source reports that since the assumption of office of the Olayemi Cardoso-led management, the CBN has cleared over $4bn out of the inherited $7billion, while about $2.5billion is yet to be cleared, thus, raising concerns from manufacturers.
Recall that the CBN invited the Economic and Finanacial Crimes Commission (EFCC) to probe the claim.
The MAN DG, however, noted that while the bank cited an ongoing investigation by EFCC for the delay, businesses that borrowed money from banks to get the letter of credit had made huge losses with the increase in the rate of dollar to naira between 2023 and 2024.
According to him, “This $2.4billion worth of forward contracts from the backlog of $7billion has triggered a severe crisis for the manufacturing sector and Nigerian economy.
“Worse still, the commercial banks have continued to charge dollar accounts along with other Naira bank charges such as 35 per cent interest rate on the facilities that these companies have with their banks.
“All these have significantly eroded the working capital of the companies who barely make margins of 5 per cent on the sales of the products.
“This rather worrisome breach of contract has further exacerbated currency risk for businesses, leading to substantial financial losses and operational disruptions”.
Ajayi-Kadir continued that businesses with substantial foreign exchange liabilities faced acute ontracts.
credit and liquidity risks due to their inability to settle forward contracts.
“This strains cash flow, jeopardises overall financial stability. While many small and medium-sized enterprises have been forced to close or temporarily suspend operations, larger corporations have incurred massive foreign exchange losses exceeding over N300billion in the second half of 2023.
“This situation has been exacerbated by the continuous depreciation of the naira, which has depreciated by more than 72 per cent, from N450 to N1,600 per dollar over the past year”, he said.
He also noted that manufacturing concerns had been worse hit within the last six months, with companies incurring over N1.5trillion in forex-related transaction losses.
The DG stated that to prevent further damage, there should be collaboration between the CBN, the Federal Ministry of Finance and the private sector to develop a sustainable framework for resolving outstanding forward contracts and improving foreign exchange inflows.
Meanwhile, the CBN on Wednesday auctioned $876million to clear part of the retail forex request.
It did this through the Retail Dutch Auction System (RDAS) which is designed to facilitate forex sales to end users directly, promoting a more transparent market, reducing information asymmetry and aiding in price discovery.
The CBN said in a statement that “In the latest testament to the Central Bank of Nigeria’s (CBN’s) ongoing commitment to support the proper functioning of the foreign exchange market by enhancing liquidity when necessary, the apex bank offered $876million to fulfill bids submitted by customers at an auction concluded on Wednesday, August 7, 2024.
Business
Minister Constitutes Tech Committee On Aviation Ties With Angola
Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has constituted a technical committee to work with the Angolan Embassy on deepening aviation ties with Nigeria.
Special Assistant on Media and Communications to the Minister, Mr. Tunde Moshood, in a statement, said the committee would oversee logistics and help solidify plans for the Minister’s visit and potential areas of collaboration.
This development is coming after Keyamo received the Angolan Ambassador to Nigeria, Jose Bamoquina Zau, and his Deputy, Nelson Paulo Kafikiri, in Abuja.
The statement revealed that the Angola’s Minister of Transport, Dr. Ricardo Viegas de Abreu, was keen to build a synergy between both nations and was eager to tap into the wealth of experience of Nigeria’s aviation leadership.
According to the statement, “The visit is aimed at strengthening aviation ties between Nigeria and Angola, particularly as Angola embarks on a new era for its aviation industry.
“The Angolan delegation brought positive updates on the progress of Angola’s aviation sector, specifically highlighting the recent overhaul of its airport infrastructure.
Ambassador Zau informed Keyamo that the new airport, set to serve as a strategic hub for the region, will be officially inaugurated in one month’s time.
In delivering a message from the Angolan Minister of Transport, Ricardo de Abreu, the Ambassador conveyed the Minister’s warm greetings and underscored Angola’s eagerness to foster collaboration with Nigeria.
He expressed interest in exploring a bilateral air services agreement and other mutually beneficial opportunities within the aviation sector.
Ambassador Zau also extended an official invitation from Minister Ricardo de Abreu for Keyamo to attend the grand opening of Angola’s new airport next month.
He emphasised that both nations stand to gain from deeper cooperation, particularly in aviation business and infrastructure development.
In response, the aviation Minister expressed appreciation for the visit and congratulated the Angolan government on its impressive strides in aviation infrastructure.
He affirmed his commitment to attend the upcoming event and signalled Nigeria’s readiness to work closely with Angola to enhance air connectivity and explore new business opportunities.
“To ensure seamless coordination ahead of the event, the Aviation Minister has constituted a technical committee to work with the Angolan Embassy’s team.
“The committee will oversee logistics and help solidify plans for the Minister’s visit and potential areas of collaboration.
“The meeting underscores the continued commitment of both nations to expand their aviation sectors and work towards a prosperous and mutually beneficial relationship”, Moshood stated.
Business
NIWA Wants Deeper Private Investment In Blue Economy
The National Inland Waterways Authority (NIWA) has called for deeper private sector participation in the blue economy initiative to harness greater benefits from it, for national development.
The Authority also commenced moves to improve security across the nation’s Waterways, in a bid to attract private investment into the Blue economy.
Managing Director of NIWA, Mr. Bola Oyebamiji, who disclosed this to newsmen during the tour of Wari and Onithsa area offices, said NIWA is determined to revamp the nation’s economy by consolidating on Public/Private Partnerships (PPP) initiatives.
“This initiative is part of our deliberate plans to open up new opportunities to maximise full economic potentials of the nation’s waterways.
“The PPP is the way to go but we need people or investors, who have genuine intentions and purposes to enable us align with President Bola Tinubu’s Renewed Hope Agenda for economic recovery”, he said.
The agency’s boss tasked the staff to live up to expectation by working harder in revenue generation that could open rooms to better their welfare.
He warned the staff against indolence and laxity since he was committed to staff welfare and revenue generation
According to him, there is need for the staff to be disciplined and committed by rededicating themselves to the growth and development of the Authority.
Business
Discount Airfares: Qatar Airways, Access Bank Extend To Dec
The Qatar Airlines, in its efforts to further ease financial burden of air passengers, has extended its discount partnership deal with Access Bank till December 2024.
Access Bank customers, who book their flights online using Qatar Airways’ website in this deal, enjoy up to 12 percent discount on both business and economy classses.
The Bank’s customers, using the promo code “ACCESS”, can book flights to any destination in the world and travel.
Qarta Airline, in a statement through the Vice President–Africa, Hendrick du Preez, stated that the partnership reiterates the Airways’ commitment to streamline travel within and across African markets by delivering first-rate services and offerings to passengers.
“As we are in the summer season and passengers tend to want to travel to spend time with loved ones, our priority at Qatar Airways remains broadening opportunities to travel for our passengers in the African market.
“Although Africa stands as the most underserved market, we strongly believe in the power of partnerships like these in transforming travel within the continent.
“We are proud to partner with respected pan-African financial institutions like Access Bank to provide innovative incentives for passengers and customers”, he stated.
This is coming on the heels of Qatar Airways’ recent expansion of routes across the African continent along with increased flight frequencies in various locations.
Also in the release, Access Bank’s Executive Director for Corporate and Investment Banking, Iyabo Soji-Okusanya, expressed enthusiasm about the partnership.
“Our team is delighted to collaborate with Qatar Airways to bring exceptional travel benefits to our valued customers. This offering aligns with our commitment to enhancing the overall experience for those who choose Access Bank and continue to do so every year.
“By providing exclusive discounts on Qatar Airways flights, we aim to make travel more accessible and enjoyable for our customers”, Soji-Okusanya said.
Corlins Walter
-
Social/Kiddies4 days ago
Children And Basics Of Family
-
News4 days ago
We’re Delivering Critical Projects, Social Services To Impact Lives Directly – Fubara …Says Opobo Ring Road To Be Ready In Three Months
-
News1 day ago
Group decries low knowledge, implementation of FOI Act by institutions
-
Editorial4 days ago
In Support Of Neighbourhood Watch Revival
-
Featured4 days ago
More Synergy’ll Win Fight Against Oil Theft, Fubara Tells CDS …Promises Six Gun Boats To Tackle Sea Piracy
-
Politics4 days ago
#EndBadGovernance Protesters Bail Conditions Punitive, Witch-hunt – AI
-
News1 day ago
SERAP Seeks Reversal Of Petrol Price To N600 Per Litre
-
Women4 days ago
Looking Fresh With Low Hair Cut