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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.

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I’m Not Afraid Of EFCC Probe After Leaving Office — Nyesom Wike

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Nyesom Wike, governor of Rivers, says he is leaving office as a “fulfilled” public servant.

Speaking on Wednesday at the inauguration of the Rumuigbo internal road network in the Obio-Akpor LGA of the state, Wike said he is not afraid of being investigated by the Economic Financial Crimes Commission (EFCC) after leaving office on May 29.

Wike said he won’t run away from the state to evade any probe by the anti-graft agency, adding that his administration has done several projects to justify how public funds were spent.

“I’m happy that I am leaving office fulfilled. I’m leaving office with my shoulders high. I am leaving office very well,” Wike said.

“I’m not leaving office to run away so that EFCC would not come (to probe me). I’m leaving office and I will stay here (Rivers). I am not going anywhere.”

Wike asked Siminialayi Fubara, the governor-elect, to show EFCC the projects completed by his administration if the commission visits the state.

Wike’s comment comes days after Abdulrasheed Bawa, chairman of the EFCC, reportedly said the commission will go after some outgoing governors and other public officials after May 29.

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Sustained Growth: Transcorp Plc Delivers Strong Performance As Revenue Rises By 21%

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Transnational Corporation Plc (Transcorp) has released its financial results for the full year ended December 31, 2022, demonstrating significant improvements in its major income lines. The conglomerate with investments in the Hospitality, Power, and Oil & Gas sectors, recorded growth in its profit before tax, which rose by 8% to N30.3 billion compared to N27.9 billion in December 2021.

The conglomerate saw a 7% increase in its Power investments, despite the challenges faced in the year from the issues with gas supply, off the diminished Oil & Gas production in the country in 2022. The hospitality sector showed a very strong performance, achieving a record revenue of 31.4 billion and profit before tax of N4.5billion. These achievements have been made within a challenging operating environment characterized by foreign exchange volatility, high cost of production and rising inflation.

It’s worth noting that the Group’s total revenue and operating profit also experienced significant growth, rising by 21% from N111.2 billion in December 2021 to N134.7 billion in the period under review, and from N38.5 billion in December 2021 to N46.7 billion in December 2022, respectively. Operating expenses for the year ended December 2022 stood at N23.4 billion, representing an increase of 24% compared to N18.8 billion recorded in the same period of 2021.

The results showed that total assets increased by 6% from N416 billion in December 2021 to N442.7 billion in December 2022, primarily due to additional investment in the recovery of the power plants and investment in financial assets. Shareholders’ Funds rose to N154.8 billion, representing a 6% year-on-year increase from N146.3 billion recorded in the same period of 2021.

Commenting on the results, the President/Group Chief Executive Officer, Dr. (Mrs.) Owen Omogiafo attributed the success of the results to the robustness of the company’s business model, which remains prudent and nimble across its operations. She said “As we reflect on our achievements, we take pride in the improved performance of our Group. Looking to the future, we will continue to focus on efficiency and cost optimisation, ensuring that we remain agile and responsive to the market while delivering value to our stakeholders.”

Transcorp remains committed to its transformation agenda whilst sustaining growth and a continuous drive to deliver long-term value to its shareholders.

 

About Transnational Corporation Plc

Transnational Corporation Plc (Transcorp Group) is a publicly quoted Conglomerate, with a shareholder base of approximately 300,000. Our portfolio comprises strategic investments in the power, hospitality, and oil and gas sectors. Our businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power, Transafam Power, and Transcorp Energy.

Visit www.transcorpgroup.com for more.

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Afenifere Recognizes Tinubu, Not Obi As Presidential Poll Winner — Fasoranti To Adebanjo

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Reuben Fasoranti, former leader of Afenifere, says the organisation recognises Bola Tinubu as Nigeria’s president-elect.

In a statement on Wednesday, the elder statesman also reacted to the suspension of two national officers of the Yoruba socio-political group, describing it as “null and void”.

Earlier report had it that Afenifere led by Ayo Adebanjo suspended Jare Ajayi, the group’s national publicity secretary, and Abagun Kole Omololu, national organising secretary.

The officers were suspended for issuing an “unauthorised statement” against Emmanuel Iwuanyanwu, chairman of the council of elders, Ohanaeze Ndigbo.

The suspension of the duo was announced in a communiqué released at the end of the Afenifere monthly general meeting, on Tuesday.

The former Afenifere leader said Ajayi and Omololu were suspended for issuing a statement on behalf of Afenifere in which the president-elect was congratulated.

“My attention has been drawn to the Communique purportedly issued after a meeting that held on Tuesday, March 27, at Isanya Ogbo, Ogun State. This statement is being issued because of the content of the said document,” the statement reads.

“Section 2.02 of the document claims that “the results of the lawful votes at the Presidential election available to the Afenifere through credible sources confirm that Peter Obi, the presidential candidate of the Labour Party, won the said election.

“Afenifere could not have asserted that someone, other than the person declared by the body duly authorized by the Constitution and other extant laws of the land, is the winner of the presidential election held on February 25, 2023 in Nigeria.

“The body mandated to conduct elections in Nigeria, the Independent National Electoral Commission (INEC), after the completion of this year’s presidential election on February 25th, has declared the candidate of All Progressives Congress (APC), Asiwaju Ahmed Bola Tinubu as the winner of the said election.

“Our national publicity secretary of Afenifere, Comrade Jare Ajayi, issued a congratulatory message to the president-elect after he had been issued a certificate of return by INEC.

“This was cited as an “uncouth activity” by the communique mentioned above which further stated that Abagun and Ajayi were suspended sine die pending further decisions after their appearance before and recommendations by the disciplinary committee.

“Meaning that the two were pronounced guilty and consequently sanctioned even before their appearance before a disciplinary committee.

‘This type of position is alien to us in Afenifere which does not conduct itself as an agent of the state let alone as an electoral umpire.

“We accept the results of the elections at all levels as declared by INEC until otherwise decided by competent courts in the land.

“At no time was any of these officials reported to me as doing anything against what Afenifere stands for or doing anything against the interests of our race, the Yoruba.

“Thus, at no time was I informed that they were queried, warned, or sanctioned for conducting themselves in a manner contrary to what Afenifere or the Yoruba stand for.

“Being an organisation that believes in justice and fairness, being an organisation that always maintains that those at the helms of affairs should follow the rule of law, Afenifere, our organisation, cannot just wake up and pronounce some officials removed and suspended without telling them what their offences are and without giving them the opportunities to defend themselves.

“Such a step is not only against natural justice; it is also in clear defiance of the law of the land. Afenifere believes in the rule of law and in the fundamental rights of all, including the right to a fair hearing. For these and other reasons, the purported removal and suspension are null and void.”

Since the emergence of Adebanjo as the new leader of Afenifere, the position of the socio-political group on national issues has always been contrary to the stance of Fasoranti, the erstwhile leader of the group.

While Afenifere endorsed Peter Obi of the Labour Party for the presidential election, Fasoranti backed Bola Tinubu of the All Progressives Congress (APC).

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