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Heritage Bank, LCFE Explore Opportunities In Commodities Ecosystem To Support Cbn’s $200bn Fx Repatriation

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Heritage Bank Plc, Lagos Commodities and Futures Exchange (LCFE), and other participating financial institutions explored opportunities on export revenue from the Commodities Ecosystem as part of its support to the Central Bank of Nigeria’s (CBN) to raise $200billion in foreign exchange repatriation from the non-oil exports over the next three to five years.

At a breakfast meeting organized by LCFE with bankers, tagged, “The CBN RT200 FX Programme: And Potential of Export Revenue from the Commodities Ecosystem,” had in attendance representatives from Heritage Bank, FSDH, Agvest Limited, Novo Merchant Bank amongst others.

Speaking on the opportunities for financial institutions in the CBN RT200 FX Programme, Olugbenga Awe, Divisional Head, Agribusiness, Natural Resources & Project Development, Heritage Bank stated that the promotion of investment in commodities ecosystem by financial institutions in partnership with LCFE in its various assets traded in Agric commodities, energy, and solid minerals would increase liquidity support from local commodity exportation to boost the race for the $200billion in FX repatriation and reduce the pressure on exchange rate.

Meanwhile, he identified challenges that expediently needed to be addressed which may likely hinder financial institution’s efforts on supporting the commodities ecosystem to drive the CBN’s RT200 FX target, such as inadequate export finance resources, lack of dependable source of local product prices, risk of haulage to bad roads amongst others.

Awe explained that to significantly boost local production of exportable commodities and drastically reduce the country’s dependence on oil revenue, financial institutions must play the role of market markers to the Commodity Exchange (COMEX), thereby bringing liquidity to the Exchange.

According to him, with COMEX as a risk mitigation platform, there is a need for the Warehouse (WR) finance structure to be registered with LCFE and the collateral management in place, which is within the parameters set by banks.

He further explained that banks must actively participate in crop receipts, liaise with their brokers to develop the value chain around a well-market structure warehouse receipts systems (WRS). This, he said would help stimulate demand amongst players from the aggregators, off-takers for standardized contracts that help deepen the value chain while providing financing that increased volumes traded.

Awe, however, reiterated that promoting investment in commodities ecosystem via structured WR finance would bring about value addition to commodities with the help to moderate the prices, as the expected increase in demand would increase revenue export and make deposit money banks self-sufficient in meeting the FX needs of their customers.

Awe, who enumerated how financial institutions can partner with commodity exchange especially LCFE to deepen their footprints in various asset classes traded by LCFE, also referenced what Heritage Bank is doing in the Wheat Value Chain together with CBN investing N40billion, which will scale up wheat production during harvest season.

According to him, whatever can be achieved in wheat can be replicated across the various value chains in rice, maize, others and ensuring that there is a link to the commodity exchange.

MD of LCFE, Akin Akeredolu-Ale, who commended Heritage Bank for its sterling efforts in deepening its footprints in agro-business, called on banks and other organizations to take advantage of the catalytic and transformational approach to support the CBN RT200 FX initiative.

He stressed that to achieve the target, there was a need for the creation and registration of Bank Commodity Desks with LCFE and Central Securities Clearing System (CSCS).

He noted that the stakeholders’ structure in financing the commodities ecosystem includes Commodity Exchange, Commercial Banks, Non-Interest Banking, Merchant Bank.

Akeredolu-Ale, who decried that the Nigerian economy was still import driven and depended largely on the export of petroleum to meet FX earnings, revealed that LCFE has lined up products such as commodity instruments, commodity-backed notes, Exchange-traded funds, Commodity Spot Contracts amongst others as a bumper for driving huge export revenue from commodities ecosystem to fast track the actualization of $200billion in FX repatriation.

BIG STORY

We’ll Reintroduce Bill Seeking 6-Year Single Term For President, Governors Despite Rejection — Rep

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Ikeagwuonu Ugochinyere, a member of the House of Representatives, says the push for a six-year single term for president and governors will continue despite the bill’s rejection.

The bill, which was slated for a second reading during Thursday’s plenary session, was rejected by lawmakers in the Green Chamber.

Sponsored by Ikeagwuonu from Imo State and 33 other lawmakers, the bill also sought to amend Section 3 of the Constitution to recognize the division of Nigeria into six geopolitical zones.

Briefing journalists on Thursday evening, the lawmaker described the rejection of the bill as a “temporary setback.”

“The struggle to reform our constitutional democracy to be all-inclusive and provide an avenue for justice, equity, and fairness has not been lost,” he said.

The lawmaker added that voting against the bill by the parliament “does not put an end to agitation and hope that we will realise this objective.”

“This is a temporary setback which does not affect the campaign for an inclusive democratic process,” he said.

The Imo lawmaker stated that the sponsors of the bill will review the decision of the House and “find possible ways of reintroducing it after following due legislative procedures.”

“All I can tell Nigerians is that we will continue the advocacy and convince our colleagues to see reason with us. If elections are held in one day, it will reduce cost and rigging,” he said.

“If power rotates, it will help deescalate political tensions, and a six-year single term will go a long way in helping elective leaders focus on delivering their democratic mandate.”

“All hope is not lost, we will continue the advocacy, and we hope that when reintroduced, our colleagues will support it.”

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65% Of Nigerian Households Can’t Afford Healthy Meals — NBS

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The National Bureau of Statistics (NBS) reports that food scarcity, insecurity, and high prices have led Nigerian households to reduce consumption, with 65 percent unable to afford healthy meals due to financial constraints.

These findings were released in the NBS’s latest General Household Survey Panel (Wave 5) report, conducted in partnership with the World Bank.

The report reveals that 71 percent of households were affected by rising prices of major food items, while food shortages impacted more than a third of households over the past year. These shortages were particularly severe in June, July, and August, worsening the food insecurity crisis.

As a result, 48.8 percent of households reported cutting back on food consumption, according to the NBS data.

“In the past 12 months, more than one-third of households faced food shortages, which occurred more frequently in the months of June, July, and August,” the report states.

“Price increases on major food items were the most prevalent shock reported by households, affecting 71.0 percent of surveyed households.”

“Households’ main reported mechanism for coping with shocks was reducing food consumption (48.8 percent).”

  • ‘62.4% Nigerian Households Secured Less Food’

The report also notes a significant increase in the number of households concerned about not having enough food to eat, with the figure rising from 36.9 percent in Wave 4 (conducted in 2019) to 62.4 percent in Wave 5.

According to the NBS, this surge reflects a rise in food insecurity, with more than half of Nigerian families struggling to meet their dietary needs.

“Approximately two out of three households (65.8 percent) reported being unable to eat healthy, nutritious, or preferred foods because of lack of money in the last 30 days. 63.8 percent of households ate only a few kinds of food due to lack of money, 62.4 percent were worried about not having enough food to eat, and 60.5 percent ate less than they thought they should,” the report adds.

“Furthermore, 12.3 percent reported that at least one person in the household went without eating for a whole day, and 20.8 percent of households had to borrow food or rely on help from friends or relatives.”

“In general, households in the southern zones report more incidents related to food security than those in northern zones.”

“For example, in the southern zones, the proportion of households reporting that they had to skip a meal ranged from 50.1 percent in South West to 62.4 percent in South East, while in the northern zones this share varied from 34.0 percent in North Central to 48.3 percent in North East.”

The report further highlights that residents in the south-south zone experienced the highest rates of food insecurity across five out of eight indicators. In contrast, the north-central zone had the lowest rates in six of the eight indicators.

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BIG STORY

POLITICS: Rest 31-Year Presidential Ambition — Bode George Tells Atiku Abubakar

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A former Deputy National Chairman of the Peoples Democratic Party, Chief Bode George, has advised former Vice President Atiku Abubakar to end his 31-year-long bid to be President.

Noting that Atiku’s bid to be President dated back to 1993, George said it was high time the former Vice President retired from such a contest, especially in the 2027 election.

Addressing a press conference at his Ikoyi, Lagos office, on Thursday, George urged Atiku to assume the position of an elder in the nation and leave his bid to posterity.

“To Atiku, my advice is this, you will be 81 years old in 2027, and you have been contesting for the presidency since 1993. This is the time for you to calm down and act like an elder. I appeal to you in the name of the Almighty Allah, that you serve, to take it easy and leave everything for posterity,” George said.

George decried that the PDP was on the verge of crumbling because people uplifted their personal interests and individual ambitions above national interest.

He criticised the “divisive, arrogant, haughty” members of the party romancing the ruling All Progressives Congress yet failing to defect from the PDP, describing them as cowards.

“We are where we are today because of a self-inflicted crisis; we should bury our individual ambitions now and not allow the PDP to crumble, please. Elders of the party should tell some of these funny characters to cool off and think of our national interest instead of their personal interest.

“Nigerians are angry and hungry. Instead of telling the APC the truth, some divisive, arrogant and haughty members are busy romancing the ruling party and they are quick to refer to themselves as elder statesmen. Instead of instigating a crisis in our party, why are they not bold enough to defect to the APC? Do they really fear God at all? No member is big enough to hold the party to ransom,” George added.

Particularly pointing to the crisis between Rivers State Governor, Siminalayi Fubara, and his predecessor and Minister of the Federal Capital Territory, Nyesom Wike, George urged Wike to immediately “cool off” from wanting to “bring down” Fubara.

George said it was worrisome that some party members, rather than bringing the two parties to mediation, further fuelled the Fubara/Wike crisis for their selfish interests.

“My advice to Wike is very simple. You are my political son. I am therefore appealing to him to cool off immediately. I know he was injured by friends during the last PDP presidential contest, but I am advising him as a father to please take it easy. Nobody is bigger than any party. Forget what happened in the past and let us work together in the interest of this party.

“I want to ask the elders at the helm of affairs of our party today, ‘What exactly is the offence of Governor Siminalayi Fubara of Rivers State?’ What exactly is the offence of this gentleman that some elders of our party are trying to throw him under the bus because of political expediency? What exactly is going on that some party members don’t feel bothered about the happenings in Rivers State? Governor Fubara was helped by Governor Wike to become the number one citizen of the oil-bearing state. The governor himself acknowledged this on several occasions.

“Must the governor now behave like a slave to his predecessor and other characters because of this concept of godfatherism which is a misnomer in our politics? Why are some party members encouraging his predecessor to bring him down? He is in Abuja; he wants to control what goes on in Rivers State.

“Did the governors before him behave this way? Why are the party leaders not eager to mediate and bring both groups to normalcy? The PDP cannot continue like this. Why can’t we learn from our past mistakes? Is our party jinxed? Why can’t we tell all these troublemakers to go and sit down if they don’t want this party to move forward?”

The National Assembly has amended the National Drug Law Enforcement Agency Act, prescribing life imprisonment for drug offenders and traffickers.

This decision followed the adoption of the harmonised report by the Senate and House of Representatives on the NDLEA Act amendment.

Presenting the report, the Chairman of the Senate Conference Committee, Senator Tahir Monguno, explained that the amendment sought to impose stricter penalties to deter illegal drug activities.

The amendment specifically stated: “Any person who unlawfully engages in the storage, custody, movement, carriage, or concealment of dangerous drugs or controlled substances and, while doing so, is armed with an offensive weapon or disguised in any manner, commits an offence under this Act and is liable, upon conviction, to life imprisonment.”

The Senate approved the recommendation through a voice vote during Thursday’s plenary, presided over by the Deputy Senate President, Barau Jibrin.

In addition to the NDLEA amendment, the Senate also passed a bill to empower the Revenue Mobilisation, Allocation, and Fiscal Commission.

The proposed legislation, known as the Revenue Mobilisation, Allocation, and Fiscal Commission Bill of 2024, sought to replace the existing RMAFC Act of 2004.

The updated law revises the commission’s composition and operational framework to ensure federal, state, and local governments receive constitutionally mandated resources to address governance and developmental challenges.

Presenting the bill, the Chairman of the Senate Committee on National Planning and Economic Affairs, Yahaya Abdullahi, highlighted the urgency of reforming the commission in light of Nigeria’s dwindling revenues and growing population.

Abdullahi explained that the bill aims to strengthen RMAFC’s mandate as the constitutionally recognised body responsible for monitoring revenue generation and ensuring its equitable distribution among the three tiers of government.

“The Act, last revised over 20 years ago, no longer reflects Nigeria’s evolving economic realities. This bill proposes additional funding and a restructured operational framework for the commission to improve its efficiency,” he said.

He further emphasised that adequate funding from the Federation Account was critical for RMAFC to perform its constitutional responsibilities effectively, noting that funding challenges had previously hindered its performance.

The Senate endorsed the bill following deliberations and a majority vote.

It now awaits President Bola Ahmed Tinubu’s assent to become law.

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