AGriFin pledges to partner NCX on Agribusiness dev't~NEWSEXTRA - NEWS EXTRA ONLINE

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Friday, 24 January 2020

AGriFin pledges to partner NCX on Agribusiness dev't~NEWSEXTRA






The chairman of AgriFin Nigeria, Chief Goodie Ibru, has pledged the readiness of his organisation to partner with Nigeria Commodity Exchange, NCX, in tackling food security in Nigeria in line with the objectives of the Buhari Administration.

Chief Ibru made the pledge while on a courtesy call to NCX management in Abuja recently.

While acknowledging the importance of NCX as a national platform for the facilitation of agribusiness in the country, Chief Ibru pointed out that the private sector in Nigeria had a responsibility towards improving the wellbeing of the common man and stated that in this vein, his organization would invest in the provision of adequate warehousing network across Nigeria’s geo-political zones to assist farmers properly store their yield harvest produce to reduce wastage.

He said that AgriFin would also collaborate with NCX to improve agribusiness in the areas of quality assurance, derivative trading as well as supporting the processing of agro-produce presently exported in the raw form into finished products by way of value addition as means of attracting FOREX into Nigeria.

The AgriFin chairman posited that NCX is a veritable government platform to facilitate the entrance of Nigerian agribusiness entrepreneurs into numerous foreign markets available through such platforms like AGOA, adding that he would strive to connect the exchange to international business partnerships with UNIDO, United Nations, African Development Bank and African Business Roundtable, among other international institutions.

In her welcome remarks, the Managing Director/CEO of NCX, Zaheera Baba-Ari, welcomed the offer of collaboration from Chief Ibru and his organization with NCX, pointing out that as the federal government’s official national platform for facilitation of trade in agro-produce and solid minerals in Nigeria, the exchange stands ready to play its part in the realization of the stated objectives.

She noted that the visit coincided with the exchange’s acquisition of a network of 25 warehouses from Federal Ministry of Agriculture and Rural Development, FMARD, across the country, adding that several of them were nearing complete rehabilitation in readiness for trading operations.

The warehouses, which are located in all the nation’s geo-political zones, would be equipped with quality assaying laboratories as well as Market Information offices to facilitate commodity trading, she added.

The Managing Director called on similar organizations within and outside the country to partner with NCX in supporting the Federal Government’s effort to diversify the national economy and create employment.

Chief Ibru was accompanied on the visit by Mr. Dotun Ajayi, Executive Director of African Business Roundtable, Dr Sunday Uhiene and Mr. Funsho Akinyemi of AgriFin, while the NCX team comprised Messrs Sesan Lawal (GM Operations), Emmanuel Egwu (DGM Management Services), Chris Echikwu (DGM Corporate Communications/Strategy), Ezekiel Davou (DGM Market Development) and Biodun Oladotun (Manager Operations).

It will be recalled that the Federal Government of Nigeria established the Nigeria Commodity Exchange to provide a national trading platform for the organized trading of agricultural commodities and solid minerals products to ensure quality assurance of commodities, realistic price discovery as well as timely and assured delivery of contracts, leading to the emplacement of NCX as the country’s major market player in commodity trade facilitation and intermediation in a manner that would actively promote economic diversification and the sustainable growth of the Nigerian economy.

 

 

 

 

 

Rising inflation may force MPC to maintain monetary rates

 

 Philip Clement

Ahead of the 271st Monetary Policy Committee (MPC) of the Central Bank of Nigeria, there are strong feelers that the surging inflation rate in the country may force members to maintain the status quo on Monetary Policy rates.

According to the latest statistics from the National Bureau of Statistics (NBS), Consumer prices in Nigeria was on the rise for the fourth straight month in December 2019, reaching its highest level since April 2018 at 11.98% as food prices continued to rise.

The recent development which many experts have attributed to the on-going border closure by the federal government of Nigeria.

 

There are strong indications that taking cognizance of  inflationary pressures making it’s way at the early stages of 2020 and moving further away from the CBN 9 per cent upper target band, the naira will continue to be volatile.

 

Although Godwin Emefiele, the central bank governor, said in November 2019 that “the impact of the border closures on inflation is temporary”, this may be questioned if inflation continues to escalate in 2020.

 

Rising inflationary pressures should force the CBN to maintain status quo on interest rates next week. However, many will have their focus on the loan to deposit ratio for banks which has been set to 65 per cent.

 

Looking at the forecast for loan deposit ratio, it is predicted that the apex bank may increase the loan to deposit rate to 70 per cent in an effort to boost economic growth through investments in Nigeria’s real sector, particularly small and medium scale enterprises.

 

It would be recalled that the first meeting of the monetary policy committee of the Central Bank of Nigeria is expected to hold today in Abuja.
 

Shareholders Invest Half a Billion Dollars in New Equity in Afreximbank

The African Export-Import Bank (Afreximbank or the Bank) announces that existing shareholders, including the Federal Republic of Nigeria and the Arab Bank for Economic Development in Africa, have invested $200 million through Class A, B and C shares and $300 million in callable capital, bringing the total value of new shares issued by the Bank in 2019 to $500 million.

 

The majority of the proceeds of the capital raise was used by the Bank to retire warrants that were issued in December 2018.

 

The new equity also puts the Bank in a strong position to continue its growth in line with its strategic plan, particularly in the wake of the recently launched African Continental Free Trade Area, the largest free trade area created worldwide since the formation of the World Trade Organization.

 

The Bank continues to monitor market conditions to find the appropriate window to re-launch its initial public offering in London.

 

Prof. Benedict Oramah, President of Afreximbank, said: “The equity injection reflects the confidence which our existing shareholders have in the Bank and the Bank welcomes their decision to rapidly take up additional equity.

"We are well positioned to take advantage of our relationships with our member states to provide a platform for trade and investment flows across the continent, delivering returns for the Bank and growth for African businesses.”

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