UBA grants NIbn loan to Ebonyi for rice production NITED Bank for Africa has said it has granted N1bn credit facility to the Ebonyi
U
Government to revive rice
production in the state. The Chief Executive Officer of the bank, Mr. Phillip Oduoza, disclosed this on Thursday in Abakaliki when he led the top management team of the bank
CBN releases N92bn under Commercial T Agric CredifScheme - Minister HE Central Bank of Nigeria has released more than N92bn for
disbursement
to
farmers
under the Commercial Agriculture Credit Scheme from inception in 2008 to date, the Minister of Agriculture and Rural Development, Prof. Sheik Abdullah, has disclosed. Abdullah made this
known on Thursday in Kaduna at the retreat on commercial
agriculture,
which brought together ministry officials and those of the World Bank, among other stakeholders. The News agency of Nigeria reports thatthe World
Bank is providing assistance
for the implementation of the Commercial Agriculture Development Programme in
five states - Lagos, Kaduna, Kana, Cross River and Enugu. He said that the CBN had already disbursed N1bn each
to 14 states of Adamawa, Anambra, Bauchi, Enugu, Gombe, Kebbi, Kogi, Kwara, Nasarawa, Niger, Ondb, Sokoto, Taraba and Zamfara as well as the FCT. The minister said that other states were still working toward meeting the criteria
to qualify them to access the fund. He said that efforts were ongoing to promote commercial agriculture to
improve the performance of the sector, which provides food and employment for the fast growing population
on a courtesy ca1l on Governor
as well as raw materials for
Martin Elechi. Oduoza said that the facility was granted under the Federal Government's Commercial Agriculture Credit Scheme
the industrial sector.
He said it was in recognition of the critical
and would attract nine per cent interest.
He said, "The government used the loan to establish a letter of credit for the importation of machines to be used in revitaiising rice mills in the state. "We want to assist the state in reviving its rice industry,
• L-R: Executive Director, Commercial Banking, Bank PHB Pic, Mrs. Ayaba Ayo-Joseph; Regional Manager, Retail, Mrs. Olufunke Jones; winner of a 32" LCD Tv, Mr. Adetola Solomon; and Divisional Head, Consumer and Retail Banking, Mr. Olu Akanmu, during Bank PHB's 'Save for the Season Promo' draw, in Lagos ... on Thursday.
• FG sells NllObn in treasury bills
IGERlA:S sovereign N wealth fund, currently in the under debate
A CCESS Bank Pic has L""\said it has been admitted as a primary member of the International Swaps and Derivatives Association. ISDA is a global trade
National Assembly, will set aside at least 20 per cent of its assets accrued from crude oil exports for future
The bank's Managing Director, Mr. Aigboje Aig-Imoukhuede, said in a statement on Thursday that the admission was in recognition of the bffj1k's long-standing contribution
to the development of the
generations.
The Nigeria Sovereign Investment Authority will be split into the Nigeria Infrastructure Fund, the
Ademola Alawiye
F
OLLOWING directive
the given
to
financial market across
Africa. Aig-Imoukhuede said that the bank intended to leverage
to submit compliance plans on their business models, investigations have revealed
on opportunities presented
that five banks may apply as holding companies in the
ISDA platform to
showcase the attractiveness of the Nigerian financial system to the international financial community.
He said, "We consider our membership of ISDA to be a strong reflection of
Access Bank's leadership in the financial markets. "Our admittance to
primary membership of ISDA reflects our ~ngoing presence in the domestic market and complements the efforts of the Central Bank of Nigeria in developing the foreign exchange markets in the country."
Future
Generations
Fund
and the Stabilisation Fund, Bloomberg quoted a draft of the bill in a report on Thursday. Each
component,
it
added, would represent at least 20 per cent of the total fund. The fund is designed to ensure that some of the
country's oil wealth is saved and that it could not be
tapped on a regular basis to finance
the
government's
running costs. The Federal Government had pledged an initial sum of $1 bn for the fund. In a related development, the Central Bank of Nigeria sold N109.27bn ($720m) in 91-182- and 364-day treasury bills on Wednesday as part of measures to curb
inflation
and
help
banks
manage their liquidity.
components
The regulator, according
to Reuters, sold N39.27bn in 91-day bills at a marginal rate of 7.09 per cent, N40bn in 182-day bills at nine per cent and N30bn in 364-day bonds at 9.6 per cent. Total subscription for the papers. it added, was in excess of N315bn, "but the CBN stuck to its initial offer." On the sovereign wealth fund, each of the three
new banking regime. According to a research investigation report by
FSDH, obtained by our correspondent on. Thursday,
First Bank of Nigeria Pic, United Bank for Africa Pic, Zenith Bank Pic, First City Monument Bank Pic and Bank PHB Pic may likely apply for a holding structure.
The report added, "Our preliminary discussions with
some of the quoted banks reveal that some of them will adopt the holding company
holding companies structure and will list the holding company on the floor of the Nigerian Stock Exchange to replace the current
group
companies
that are listed. "In other words, except for the restructuring costs that will be associated with migrating to the holding company model, the value
that wants to retain nonbanking business will evolve into holding company model, which will hold investments in the bank and each non-
Aigbe,
told in
a
corporate affairs department
fq>cus on their core banking
of First Bank, who craved anonymity, also told our correspondent that First Bank had concluded plans to operate as a holding
specialisation.
called subsidiaries. A bank or banking group
correspondent
the CBN, is to make banks
will be identical to the value of the proposed holding company The research noted that the other 19 banks would likely apply as non-holding
in another company, often
Charles
new model, according to
core banking operation in
subsidiary arrangement. The objective of the
business
A holding company is basically a corporation that holds a controlling interest
Mr. our
UBA,
telephone interview that the bank would operate as a holding company. He said, "It is part of our plans to go for a holding structure. It has been decided upon and we are working towards it." An official of the
of the current group structure
companies for their models.
Communications,
and
develop
The CBN had said that banks operating in Nigeria
were required to submit their plans on how they intended to transform to the new system not later than 90 days from October 4,2010. Our correspondent spoke
to some of the banks and they confirmed the report. For
Head,
instance,
the
Corporate
company.
He
said,
"We
"ring-fenced
will create a portfolio of
investments," the document
said. The finance minister could
only withdraw money from the stabilisation segment, "upon a proper demonstration of urgency," in order to shore up the economy whenever lower crude prices curb government revenue, the document further
explained. Nigeria
relies
on
crude
exports for about 95 per cent of its foreign currency earnings.
New model: Five banks may operate as Deposit Money Banks by the Central Bank of Nigeria
by the
government has put in place some value chain infrastructure, ranging from storage, proceSSing, research and marketing facilities to price support for farmers, to ensure efficient production and enhance food security.
'Sovereign wealth fund to save 20% for posterity' Stanley Opara with agency report
Access Bank joins ISDA
derivatives.
that
According to him. the
state government to secure a
in privately negotiated
sector
Government
farmers, would attract a nine per cent interest rate.
benefits." The bank's CEO also said that the bank had assisted the
association for participants
the
the states. Abdullah said that access to the N200bn fund under the scheme, which accommodates smallholder, medium and large-scale
name in the country in the past, with accruing economic
on ground, the project is on course.
of
Federal
value chain infrastructure in
which made it a household
N16.5bn bond facility, which would enable it to execute major projects for the benefit of the people. Oduozu added, "The dualisation of the Abakaliki end of the Enugu-Abakaliki Federal Highway is one of the projects to be executed by the bond and, from the facts
role the
created the N244.2bn Special Intervention Fund to support the establishment of agricultural commodities
have
announced plans to form a
holding company that will be listed on the NSE. The group holding company will be the listed entity and will be 100 per cent owner of the bank, as well as other subsidiaries. "
It's the only member of the Organisation of Petroleum Exporting Countries without a sovereign fund, according to a former Minister of Information,
Prof. Dora Akunyili. The creation of the sovereign wealth fund, however,
came
after
the
country depleted its current excess crude account frpm .. I ~ r
more than $20bn in 2007 to less than $1 bn last year, according to a recent report. Rtch Ratings lowered its
outlook on
Nigeria's BB-
credit rating to
"negative"
from "stable" on October 22, saying it was concerned by
withdrawals from the account and a drop in foreign currency reserves.
The sovereign fund, to be based in the capital, Abuja, will have a governing board headed by the President. Other members include governors of
the 36 states, the ministers of finance, justice and planning,
the CBN Governor and the chief economic adviser. ------------
'.' ~