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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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NDLEA Nabs 60-Yr-Old Grandma, Pregnant Woman, Others Over Illegal Drug [PHOTOS]

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Two women, a 60-year-old grandmother, and a pregnant woman were among those arrested during interdiction operations by operatives of the National Drug Law Enforcement Agency (NDLEA) across five states and the Federal Capital Territory, Abuja in the past week, during which 5,527.15 kilograms of methamphetamine and cannabis sativa, as well as 132,090 tablets of tramadol and 2,000 bottles of codeine were recovered.

A statement on Sunday by the spokesman of the anti-narcotics agency, Femi Babafemi said the grandma, Mrs. Ibinosun Esther was arrested in Ibadan, Oyo state in a follow-up operation following the seizure of 5.5 kilograms Loud variant of cannabis imported into the country from South Africa.

According to Babafemi, the grandma claimed the consignment, was sent to her by her daughter and concealed in two giant Speakers as part of a consolidated cargo that arrived at the NAHCO import shed of the Murtala Muhammed International Airport, Ikeja Lagos on board an Air Peace Airline flight.

In a related development, NDLEA operatives also on Saturday 26th November intercepted 1.4 kilograms of methamphetamine concealed inside custard tins packed among cosmetics and foodstuffs going to Brazil via Doha on a Qatar Airways flight.

Babafemi said a cargo agent, Salako Omolara who brought the bag containing the illicit drug to the airport, and an intending passenger to Brazil, Anyanwu Christian who was to travel with the consignment were promptly arrested.

He said another attempt by a freight agent, Adebisi Aina to export 3,000 tablets of tramadol concealed in motor spare parts to Banjul, Gambia through the NAHCO export shed was equally thwarted by operatives who seized the consignment and arrested her on Monday 28th November, while a follow-up operation to Ebute-Meta area of Lagos the following day, Tuesday 29th November led to the arrest of the alleged actual owner, Afam Chibuke, who is a spare parts seller.

He noted that this was followed by the seizure of 100,000 tablets of Royal brand of Tramadol 200mg with a gross weight of 68.9 kilograms imported from Karachi, Pakistan on Ethiopian Airlines at the SAHCO import shed.

He disclosed that in Abuja, operatives stormed the warehouse of a notorious drug lord and an ex-convict, Ibrahim Momoh, alias ‘Ibrahim Bendel’ who escaped from prison custody to return to his criminal trade and recovered 81 jumbo bags of cannabis weighing 1,278 kilograms

He said though Though the fleeing drug dealer is still at large and is wanted by the agency, his warehouse keeper, 55-year-old Ghanaian, Richard Forson was arrested.

He noted that Ibrahim Momoh was first arrested on 27th November 2014 with the same substance weighing 385.1 kilograms He subsequently prosecuted, convicted, and sentenced to seven and a half years in prison on 22nd April 2020 but escaped from jail after three months.

He also disclosed that no fewer than 2,000 bottles of codeine-based syrup were seized in a commercial bus by operatives on Friday 2nd December along Lokoja – Abuja expressway.

In Rivers state, operatives on Saturday arrested a 29-year-old pregnant woman, Kate Ibinabo with 34.4 kilograms  cannabis sativa in Okrika area of the state.

He said the Chairman/Chief Executive of NDLEA, Brig. Gen. Buba Marwa (Retd), has however directed that she be granted administrative bail pending when she’s delivered of her baby and thereafter return for her prosecution because at the time of her arrest, she’s in her ninth month of pregnancy.

In Ondo state, 241 bags of the psychoactive substance with a gross weight of 3,133 kilogrammes were recovered from a building at Ilale Cashew, Ehinogbe, Owo, last Tuesday; and at least, 507.9 kilogrammes of cannabis were also seized during a raid at the hideout of a fleeing drug dealer in Mushin area of Lagos last Thursday.

In Cross River, 53 jumbo bags of cannabis sativa weighing 567.05 kilogrammes were seized from three suspects: Bassey Boniface, 38; Effiong Akiba, 30 and Ngbong Raymond, 45 at Mpara junction, Odukpani local government area last Thursday while conveying the consignment in a bus marked CKK 74 AA.

Babafemi said operatives equally arrested another suspect, Ali Mohammed along Potiskum- Damaturu road after they found 29,090 tablets of tramadol in his personal Honda car marked ABC 914 RW coming from Gombe to Damaturu, Yobe state.

Meanwhile, while commending the officers and men of the MMIA, Rivers, Ondo, Lagos, Cross River and Yobe commands of the agency for the arrests and seizures, Marwa charged them and their counterparts across other formations to continue to step up their offensives against drug cartels.

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13% Derivation: I Owe No One Apology For Commending Buhari — Wike

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The executive governor of Rivers State, Nyesom Wike, says he does not owe anyone an apology for commending President Muhammadu Buhari for approving the payment of funds owed to states in the Niger Delta since 1999.

Wike spoke on Saturday during the 2022 Rivers state honours and awards ceremony, in Port Harcourt, the state capital.

On November 18, the Rivers governor had announced that the Buhari-led government paid his state and other Niger Delta states funds owed from the 13 percent derivation fund.

Wike said the funds paid by the federal government have significantly aided his infrastructural strides in the state.

Wike’s comments elicited varied reactions as Nigerians called on other state governors who had received the fund to account for it.

On Friday, the presidency also said nine oil-producing states received a total of N625.43 billion as 13 percent oil derivation, subsidy and SURE-P refunds from the federation account between 2021 and 2022.

The states that benefitted from the derivation refunds include Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.

Wike said he is currently battling “problem” because he appreciated Buhari for approving the refund to the nine oil-producing states.

“Instead of human beings to say they appreciate you, they become envious that why were you appreciated. Because I said Buhari thank you, I’m having problem today,” he said.

“I’m not a fan of Buhari. I told the honourable attorney-general but when a man has done well say he has done well in that area. On the other area, he has not done well, you equally say so.

“I have no apology to anybody. Today, Wike did this and that projects. Look if Buhari did not release the money, from 1999, which my party did not even release, I won’t have done what I did.

“I don’t give a damn to anybody. I don’t care. I got the money. I’m not a fan of Buhari. He has not done well in so many areas but with this payment of money, he did well.

“My friends and party members may not be happy. Make una no vex oo. This one, Buhari did well. He gave me money and I used it to do something for people in Rivers state. The other ones will talk about their own later.”

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2023: Peter Obi Finally Releases Manifesto, Promises To Move Nigeria From “Consuming To Producing”, Others

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Peter Obi, the presidential candidate of the Labour Party (LP), has unveiled his manifesto.

Obi unveiled the 72-page manifesto via his Twitter handle on Sunday.

The manifesto is titled “It’s POssible: Our Pact with Nigerians”.

In the manifesto, the former Anambra governor listed seven priorities his administration would concentrate on if elected president in 2023.

Over the past few days, Obi had come under criticism in some quarters, especially among members of the All Progressives Congress (APC), for not having a manifesto.

In October, the LP presidential distanced himself from a manifesto attributed to him.

Obi had said he would personally release the LP manifesto to the public when it is ready.

In the manifesto released on Sunday, the former Anambra governor promised to move Nigeria from a consumption economy to a production-centred economy.

The LP presidential candidate said he would end banditry and insurgency if elected president.

“Restructure the polity through effective legal and institutional reforms to entrench the rule of law, aggressively fight corruption, reduce cost of governance, and establish an honest and efficient civil service,” the manifesto reads.

“Leapfrog Nigeria into the 4th Industrial Revolution (4IR) through the application of scientific and technological innovations to create a digital economy.

“Build expansive and world-class infrastructure for efficient powers supply, rail, road and air transportation, and pipeline network, through integrated public-private partnerships, and entrepreneurial public sector governance.

“Enhance the human capital of Nigerian youths for productivity and global competitiveness through investment in world-class scholarship and research, quality healthcare, and entrepreneurship education.

“Conduct an afro-centric diplomacy that protects the rights of Nigerian citizens abroad and advances the economic interests of Nigerians and Nigerian businesses in a changing world.”

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