BU$IN€SS The MINT: We’ve made adequate arrangement to continuously produce new notes

From Abubakar Yunusa Abuja

The Nigerian Security Printing and Minting Plc (NSPM) says it has made adequate arrangements to ensure continuous production of the redesigned naira notes.

There have been concerns over the scarcity of naira notes, with protests held in parts of the country.

Reacting to the development, the Central Bank of Nigeria (CBN) had said the scarcity of naira notes is not due to a shortage of printing materials at the NSPM.

Ahmed Halilu, managing director/ chief executive officer (CEO) of the company, in a statement on Saturday, affirmed the position of the apex bank.

The NSPM also dismissed the claim that De-la-Rue of the United Kingdom will produce banknotes for the country, adding the UK firm neither manufactures nor supplies paper substrate to the currency industry.

“The attention of the Nigerian Security Printing and Minting (NSPM) Plc has been drawn to some publications allegedly credited to the Central Bank Governor about the capacity of NSPM to continue the production of redesigned banknotes owing to supply chain constraints,” the statement reads.

“While the CBN has debunked the false claim, we also find it expedient to add that contrary to the mischievous claim, Dela-Rue of United Kingdom does not produce nor supply paper substrate within the currency industry.

“We wish to further assure Nigerians that NSPM has made adequate arrangement to continuously produce redesigned Banknotes as well as other denominations in line with the CBN indent for the year 2023.” Meanwhile, information on the website of the British company, headquartered in Basingstoke, England, indicates that the firm “acts as an integrated provider of finished banknotes and a provider of polymer substrate and security features to central banks, state printing works, state paper mills and other commercial entities”.

Expert: How consumer credit scheme can grow manufacturing sector, promote locally-made goods

Abubakar Yunus Abuja

Aderemi Abdul-Bojela, executive chairman of United Technologies Limited, says the development of a consumer credit scheme will drive growth in Nigeria’s manufacturing sector and improve its contribution to the country’s gross domestic product (GDP) by boosting patronage of locally-made goods.

Abdul-Bojela spoke to journalists over the weekend during a presentation of a proposed federal government consumer credit guarantee scheme (FGN-CCGS) — an innovative blueprint designed to support local manufacturers.

He said fiscal and monetary intervention worth trillions of naira have been provided by the government in the last 15 years to various sectors of the economy to stimulate manufacturing with concessionary rates.

But despite these government interventions and concessionary rates, the real sector growth has been anaemic, he said, as it only addresses the supply side of manufacturing.

Bemoaning the state of the sector, Abdul-Bojela said loan repayment by beneficiaries of the interventions has been a challenge due to low inventory turnover.

“Expected economic benefit such as job creation, reduction in import dependencies, and GDP growth are not fully realised,” the industrialist said.

“The products are not competitive. The manufacturers are underproducing [leading to] competition from imported goods from countries that can produce at a large scale and drive down production cost.”

Abdul-Bojela said the adoption of the scheme would support the federal government’s major goals of stimulating economic growth and development, as well as diversification of the economy, and job creation.

He described the proposed scheme as the innovation the country needs to reposition its real sector and make Nigeria the largest producer as the African Continental Free Trade Agreement (AfCFTA) commences.

He said the initiative would improve the lives of consumers by making credit available to them at a single-digit interest rate for their immediate needs.

“What we’re trying to achieve is to move Nigeria into the acquisition of madein-Nigeria. So, there has to be series of incentives. You earn a salary I cannot decide for you what to do with your salary. You have the prerogative to say I’m going to buy this or buy that,” he said.

“But for me to request you buy made-inNigeria, I must give you some incentives. Part of the incentives for this scheme is that the interest rates will be single-digits.

“Somebody like you who wants to buy an LG air conditioner, what are the incentives that will make you go and buy what is made in Nigeria? First of all, lower interest rates, and a tenure of not less than 12 months for you to be able to pay back. So, part of the guarantee also is that the government should reduce the interest rate. They should not match it with the MPR. It should be below 10 percent.”

Speaking on other benefits of the proposed scheme, Abdul-Bojela said it would encourage manufacturers targeting the Nigerian and African markets to set up operations in the country to take advantage of the scheme.

He said the FGN-CCGS also aims at driving consumer credit penetration and encouraging the formalisation of the informal sector.

“It will push consumption towards the acquisition of products made in Nigeria and increase the tax base and revenue,” AbdulBojela added.

“Reduce the possible negative effect of AfCFTA regulation, while building a solid real sector base, for both internal consumption and export.”

He added that the scheme will focus on the textile industry, electronics, furniture and fittings, automobile, and service sector.