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Business News

CBN disburses N607 billion to fund agricultural projects

Recent figures obtained from the Central Bank of Nigeria (CBN) have shown that the apex bank disbursed the sum of N607.87 billion credit to some Deposit Money Banks to fund some 587 agricultural projects.

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Recent figures obtained from the Central Bank of Nigeria (CBN) have shown that the apex bank disbursed the sum of N607.87 billion credit to some Deposit Money Banks to fund some 587 agricultural projects.

CBN detailed in its latest economic report for April 2019, that the money was part of its Commercial Agriculture Credit Scheme (CACS). It also stated that the sum of N345.06 billion had been reimbursed by the recipients of the scheme. According to the report;

“At end-April 2019, the total amount released by the CBN under the Commercial Agriculture Credit Scheme to participating banks for disbursement amounted to N607.87bn for 587 projects, while the total amount repaid stood at N345.06bn.”

According to the apex bank, the banks that contributed the largest amount to the recipients of the scheme are; Zenith Bank Plc, UBA Plc, Sterling Bank, and First Bank of Nigeria Limited. The lenders contributed N122.66 billion, N83.06 billion, N72.17 billion and N52.52 billion, respectively.

The CACS, which has about twenty participating banks, is expected to provide the sum of N342.7 million to about 2,022 farmers in April 2019, according to the CBN. The bank said;

“The amount represented an increase of 98 percent and 22.1 percent over the respective levels in the preceding month and the corresponding period of 2018, respectively.”

Analysis by Sectors: Analysis of the guarantee to various sectors in April 2019, shows that food crops had the biggest share with N184.7 million (53.9 percent) guaranteed to 1,217 beneficiaries, followed by livestock with N48.3 million (14.1 percent) guaranteed to 191 beneficiaries.

The sum of N42.6 million (12.4 percent) was guaranteed to mixed crops sub-sector with 329 beneficiaries. Following this are cash crops, fisheries, and some others, receiving  N29.8 million (8.7 percent), N26.5 million (7.7 percent) and N10.8 million (3.2 percent), guaranteed to 189,55 and 38 beneficiaries, respectively.

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Analysis by States: Twenty five states and the Federal Capital Territory were recipients of the scheme in April 2019. This is followed by Ogun state with N46.6 million (13.6 percent), and Kogi State with N0.6 million (0.2 percent).

Critic’s view: As Nairametrics reported, the CACS was, late last year, termed a failure by critics. However, the CBN cleared out the doubt when it released an evaluation and impact assessment report of the scheme.

With its recent progress, it is safe to say that the project has become a major contributor to the development of the agricultural sector of the Nigerian economy.

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Business

FG explains why Lagos-Ibadan rail line was not linked to the sea

The government in its explanation said that the delay was due to disruption by trucks going in and out of the port complex.

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FG needs $656 million to complete Lagos-Ibadan railway project – Amaechi, Nigeria loses N150 billion annually to shipping tariffs, Ibadan to Kano rail construction

The Federal Government has stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea.

The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.

According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.

The Minister pointed out that the original blueprint for the Lagos-Ibadan rail line project was not adhered to by CCECC Nigeria Limited and TEAM consortium and therefore warned that the master plan of the soon to commence Ibadan-Kano rail line project should not be changed.

The statement from the ministry partly reads, “The Nigerian Government has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.”

Amaechi forewarned that the master plan of the soon to commence project should not be changed as the original blueprint for the Lagos-Ibadan wasn’t adhered to by Messrs CCECC Nigeria and TEAM consortium. The Minister who rode the train from Ebute-Meta to the 8.72 km Apapa Port Spur line, informed the media that the inability of Messrs CCECC Nigeria to link the final part of the rail line down to the sea is rather due to disruption by trucks going in and out of the port complex.’’

The Minister had noted that the Federal Government has paid its share of the counterpart funding of the Ibadan-Kano rail line project and is waiting for China-Exim bank to ratify its side of the agreement for the project to commence.

He also advised the Nigerian Railway Corporation (NRC) to acquire more land around the train stations and the rail tracks for future development adding that this will be near impossible to do in the future as whatever space available now would have been taken over by businesses attracted to the rail line.

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In case you missed it

It can be recalled that full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, with only Lagos, Ibadan and Abeokuta residents enjoying the train services.

This is because other minor and major stations along that route were yet to be completed.

 

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Manufacturing

Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list

The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.

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Manufacturing: Activity levels pick up albeit readings still below water

The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.

At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.

When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.

READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says

What you should know

The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.

The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.

The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.

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MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.

GAINER

  • MEYER up by19.51% to close at N0.49.

LOSER

  • WAPCO down by -3.00% to close at N21.00.
  • BUACEMENT down by -1.09% to close at N72.70.

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