Connect with us

E-Financial

FG Plans N710B Oil Asset Equity Restructuring

Published

on

Federal government plans to raise 710 billion naira ($2.26 bln) via restructuring its equity in joint venture oil assets and increasing private sector participation, the Debt Management Office (DMO) said on Thursday.

Oil companies including Royal Dutch Shell, Chevron and ExxonMobil, operate in Nigeria through joint ventures with NNPC. The government has considered selling stakes in these joint ventures for more than a decade.

The current plan was captured in the 2018 budget proposals and is aimed at providing revenue to the government to be used to create new assets, the DMO said in a statement, responding to Moody’s downgrade of Nigeria’s bonds.

In March, the government said it expected to earn 35 billion naira from the sale of some assets, including oil joint ventures, and reducing stakes in other oil and non-oil assets.

Ratings agency Moody’s on Tuesday cut Nigeria’s long-term foreign-currency bond to B1 from Ba3 and kept its outlook stable, saying Nigerian efforts to broaden non-oil revenue had been unsuccessful. The local-currency rating was unchanged at Ba1.

The debt office said Nigeria’s economy had improved since Moody’s last rating a year ago and that it expects improvement in revenues this year to continue into 2018.

Nigeria’s sovereign bonds traded flat on Wednesday after the downgrade as investors had already factored in issues that triggered the rating change and were buying debt at a discount to book profits, traders said.

However, Moody’s move could make Nigeria’s forthcoming dollar bond issues more expensive, analysts say.

The country issued $1.5 billion worth of eurobonds in the first quarter to fund its 2017 budget and plans to sell a further $2.5 billion worth this year in addition to refinancing a $3 billion treasury bill portfolio to lower its borrowing costs.

Nigeria has been holding talks with oil companies regarding new financing agreements for joint ventures since last year as it struggled to fund its portion of such partnerships through cash calls which have often been delayed in parliament.

Continue Reading
Advertisement
Comments

E-Financial

Nigerian Farmers Log on for Cash in Hi-Tech Networks

Published

on

It looked like the end had arrived for Adewale Fatai’s chicken farm. Money was running out.

 

Built to house 30,000 chickens, the farm was producing fewer than 2,000 chicks. His family had no funds to lend, and Nigeria’s banks weren’t interested.

 

Instead, he went online.

 

Two years later, Fatai now has 20,000 chickens. Flanked by thousands of chirping birds at his farm in Nigeria’s southwestern Ogun state, Fatai told Reuters that his operation was saved by Farmcrowdy, one of a breed of new peer-to-peer lending companies aiming to match farmers with small investors.

 

Farmcrowdy uses videos and photographs to show off farms to prospective investors, willing to tie up a bit of cash until harvest time and collect a small return.

 

Onyeka Akumah, co-founder and CEO, Farmcrowdy said the company has so far helped 7,000 small-scale farmers receive a total of $6 million from 2,000 investors since it launched two years ago. He said 95 percent of investment comes from within Nigeria.

 

The typical investment starts from around 90,000 naira – $300 – too little to interest many banks but enough to help keep a small farm going until harvest.

Onyeka Akumah, co-founder and CEO, Farmcrowdy

Since taking office in 2015, President Muhammadu Buhari has said he aims to revitalize the agriculture sector in Africa’s most populous nation to reduce the OPEC member’s reliance on oil exports and cut down on costly food imports.

 

But local farmers face multiple challenges – from floods, to a lack of electricity to regulate irrigation, to fighting with semi-nomadic cattle herdsmen that has claimed hundreds of lives this year. Most of the tens of millions of farmers work on a subsistence basis and live on less than $2 a day.

 

Farmers complain that they lack the access to affordable loans needed to cover their costs until harvest time.

 

Farmcrowdy and another firm, Thrive Agric, allow investors to choose a farm on the internet and decide how much to invest. They advertise returns of around 12-20 percent for investments in soybeans, maize, tomatoes, poultry and cattle. Investors buy a funding stake and are kept updated on the progress of crops.

 

“One of the primary problems we were trying to solve was solving the problem of access to funds for farmers: giving them the right expertise for them to grow and also linking them to markets,” said Uka Eje, CEO of Thrive Agric, at his office in Abuja.

 

He said some $2.7 million had been raised by 1,670 investors for nearly 10,000 farmers since the company’s launched in 2017. His company provides farmer clients with expertise as well as fundraising, he said.

Continue Reading

E-Financial

Cyber Thieves Raid Banks, Inflict Losses

Published

on

Nigerian financial system has been jolted by a lethal development; and that is the growing activities of cyber criminals who work in and outside the system.

 

Website cloing, Identity fraud and Automated Teller Machine (ATM) scams, are now so rampant that the Central Bank of Nigeria (CBN), banks, switching companies, the police and users are having sleepless nights.

 

In 2017, Nigeria was estimated to have lost about $450 million to cybercrimes.

 

The most common today is the fake bank alerts scam which is growing in scope and leaving in its losses in its wake.

 

In this scam, fraudsters pose as potential buyers of goods or services provided by the bank customer and after both parties have agreed on a price, send fake SMS’s indicating they have deposited money into the sellers’ account.

 

The criminals usually count on their target, believing the SMS is real and would not bother to confirm with his/her bank before releasing the goods.

 

There is also website cloning scam where websites of genuine financial institutions are cloned are the scammers using what is known as phishing, the criminals send fraudulent SMSes and emails to victims directing them fake Web sites where they are asked to input sensitive data.

 

In the emails, the criminals had attachments that, when clicked, secretly install “spyware” that can capture personal information and send it to third parties over the Internet.

 

With the information supplied by victims, the criminals successfully broke into the victims’ bank accounts leaving tales of woes and losses.

 

Though the financial institutions are mostly affected by cybercrimes, all other sectors are culpable and assured Nigerians that financial institutions are strictly compelled to adhere to CBN regulations to secure online financial transactions.

Emefiele, CBN Gov.

The CBN, said it is working on modalities for new regulations to stem the rising losses that emanate from cybercrime and technology risk in the financial sector.

 

Mrs. Aishah Ahmad, deputy governor, CBN, said that “There is compelling need to redesign regulations that will address risk that may emanate from the new emerging and increasing modern class of financial firms.”

 

Elsewhere, electronic transaction switching and payment processing companies are building more security layers on top of existing ones to check the activities of the fraudsters.

 

The Police on the other hand said that that the development was being monitored and that the Commission is inviting useful information that would help burst the crime.

 

 

 

 

Continue Reading

E-Financial

Renmoney Emerges Winner Of Microfinance Excellence Award

Published

on

(R - L) Yetunde Faulkner, Head of Commercial, Renmoney, receiving Renmoney’s ‘Award for Excellence in Microfinance' from Mohammed Dabai Suleyman, Director, FSS 2020, Central Bank of Nigeria, while Folasade Femi-Lawal, Head, Card Business, First Bank, looks on; at the New Age Banking Summit held in Lagos, recently.

Renmoney, a Nigerian consumer lending company, has emerged the winner of the ‘Award for Excellence in Microfinance Banking’.

 

The award was presented at the 8th edition of the New Age Banking Summit which held at the Lagos Continental Hotel, Victoria Island.

 

Other winners of the evening were: GTBank, Diamond Bank, First Bank, First City Monument Bank, Union Bank and Wema Bank.

 

Receiving the award, Yetunde Faulkner, Head of Commercial at Renmoney, said: “We’ve been working really hard to build more convenient lending solutions for Nigerians so this award will be a huge morale boost for our team!” Yetunde added, “We launched our online loan application process this year to provide loans in under 24 hours and we are looking forward to launching even better solutions in 2019”.

 

For Anisha Ajimani of the UMS Conference, the organisers of the event, Renmoney was an obvious choice for the award because of the company’s focus on technology and customer experience.

 

She said: “The New Age Banking Awards are aimed at honouring organizations that have consistently demonstrated exemplary performance. These will not just recognize the endeavours of the most successful financial organizations, but will also set a benchmark, inspiring other organizations to achieve their own goals”.

 

The theme of the two-day event was ‘Staying Relevant in the Changing Financial Landscape of Nigeria’.

 

It was attended by a wide array of industry experts comprising Chief Information Officers of financial institutions in Nigeria, speaking on various developments and challenges in the digital banking and fintech space.

 

 

 

 

 

 

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.