Business
CBN says milk importation “NOT BANNED”, blows hot on powerful Nigerians
@cenbank has revealed that milk importation is not banned as against widespread reports.
The Central Bank of Nigeria (CBN) has revealed that milk importation is not banned as against widespread reports. The apex bank also launched a staunch attack on Nigerians who are regarded as “powerful and highly influential traders” following the recent controversies trailing the purported ban on milk importation in Nigeria.
The CBN in an official press release published on its website, late Friday, disclosed that there are ongoing blackmail and undue politicization through social media to frustrate the effort of the apex bank.
The Back Story: Earlier in the week, the CBN Governor, Godwin Emefiele told operators in the industry that milk and some other dairy products would be restricted from accessing foreign exchange, both at the official and parallel markets if they don’t invest in ranches.
- The decision was reached after the CBN met with dairy product manufacturers.
- Emefiele further reiterated the decision while reading the communique of the last CBN Monetary Policy Committee’s meeting.
- Meanwhile, there have been widespread reports that the CBN has reportedly banned the importation of milk and other dairy products.
- Also, big operators in the industry are reportedly concerned and feel coerced to participate in the CBN’s proposed policy, stressing that the bank failed to check the existing business model that would be suitable for their businesses.
[READ MORE: CBN maintains rates, keeps MPR constant at 13.5%]
CBN Breaks Silence: Meanwhile, in the press release signed by the Director, Corporate Communications, Isaac Okarafor, the CBN dismissed reports of the ban on the importation of milk, explaining what the CBN announcement means.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to attempts by some interests, who feel hurt by the planned policy aimed at promoting the local production of milk in Nigeria, to mislead the general public by misrepresenting the ordinarily unassailable case for investments in local milk production and the medium to long-term benefits of the planned policy.
“While we are aware that some of our policies may hurt some business interests, we are thankful to Nigerians for the buy-in and intense interest in the policies of the CBN. As a people-oriented institution, however, we shall remain focused on the overarching and ultimate welfare of the Nigerian masses.
“We, therefore, wish to, reiterate our policy case as it relates to the planned restriction of access to the Nigerian Foreign Exchange market by importers of milk.”
The CBN further stated that its focus is to ensure forex savings, job creation and
investments in the local production of milk.
For over 60 years Nigerian children and indeed adults have been made dependent on milk imports. The national food security implications of this can easily be imagined. And We know that it is technically and commercially possible to breed the cows that produce milk in Nigeria.
— Central Bank of Nigeria (@cenbank) July 26, 2019
“About three years ago, we began a policy to encourage backward integration to conserve foreign exchange and create jobs for our people. Included in this policy package was the introduction of the highly successful policy which restricted the sale of forex from the Nigerian foreign exchange market for the importation of some 43 items goods that could be produced in Nigeria.
“Arising from the success of the restriction policy, we approached some milk importers, like we did for rice, tomato and starch and asked them to take advantage of CBN’s low-interest loans to begin local milk production instead of relying endlessly on milk imports.”
Milk importation is NOT BANNED. CBN has no such power. All we will do is restrict sale of forex for the importation of milk. We remain ready and able to provide loans to enable investors who want to genuinely engage in milk production and create jobs for Nigerians
— Central Bank of Nigeria (@cenbank) July 26, 2019
What this means: In the meantime, the key takeaway from the CBN report means the CBN did not ban milk importation but restricted forex supply to importers which technically means importers will source for forex at an expensive rate.
By this, consumers may have to brace up to pay more for the milk products. Also, since the demand gap for milk cannot be immediately met, it may also encourage smuggling as witnessed with rice and some of the 42 items already placed under Forex restriction.
[READ FURTHER: Central Bank of Nigeria may ban importation of milk, other dairy products]
Business
Where to invest in May
Post-COVID-19 lockdown, Nigerians need to send their money on the right errands in May 2019, if they will not be caught napping the expected recession.
This May, post-COVID-19 lockdown, Nigerians need to send their money on the right errands, if they don’t want to be caught napping during the anticipated recession.
When listing out assets that should make up the ideal portfolio in May 2020, founder of Nairametrics, Ugochukwu “Ugodre” Obi-Chukwu, explained that investors should consider choice stocks in the Nigerian and foreign stock exchanges, as well as investments in money market instruments where some decent profits can be made.
Ugodre said this during the maiden edition of the Nairametrics Monthly Investment Guide Webinar.
According to him, this will also be the time to look into Agri-Tech investments, using crowdsourcing platforms, after which you can sit back and watch your funds grow over a time span of 5 months to a year.
According to him, it is also important to invest in foreign currencies and crypto-currencies to balance one’s portfolios.
He noted that foreign direct investments have reduced over the last couple of years due to reduced trust in Nigeria’s economic policies, and the desire of foreign investors to cash out their funds with ease. This also explains why portfolio investments grew by 38% in 2019.
He said, “Foreign investors love portfolio investments because when they put their money in, they can easily take it out as well.”
(READ MORE: CrowdFunding: Who is qualified according to new SEC Guidelines)
Finding the right stocks
On the stock market, he noted that quite some stocks improved in the month of April and could improve in the coming months. He listed 20 suggested shares, including six stocks which he described as COVID-19 proof.
Dangote Sugar Refinery, May & Baker Nigeria Plc, GSK, Neimeth International Pharm, Nestle Nigeria, and Cadbury Nigeria Plc are fast-moving consumer goods companies that are expected to be resistant to pressure from the pandemic.
He advised investors to track stocks that are liquid, have good financials and good corporate governance, in order to limit risks borne by investors. Valuation of the shares, he said, could be done by comparing stock value and earnings per share.
Working around cryptocurrency volatility
While making a presentation on “Why Bitcoin should be in your portfolio,” Yele Badamosi, CEO of Bundle stated that foremost cryptocurrency, Bitcoin, had maintained a steady appreciation over the last decade giving investors high yields.
Although the market is highly speculative and unregulated, its high returns and high risk indicate that investors with high-risk appetites could find the market more attractive.
To avoid being on the wrong side, he advised users to consider time-based rebalancing, or tolerance rebalancing to reduce risks and rebalance one’s portfolio.
(READ MORE: AfCFTA delay: A bane to Africa’s $3.4 trillion economic bloc)
“There are reputable people in the space, but it is important to do your research, start small, and buy regularly. Be wary of get-rich-schemes and unrealistic guaranteed returns,” he advised. 
With applications like Bundle Africa on Google Play Store, buying cryptocurrencies is as easy as selecting the buy button and having it saved in your bundle wallet.
What to expect in Q2 2020
According to Wale, an economist, who also spoke at the webinar, the demand for crude oil will remain low as several countries and businesses are still in lockdown, even though OPEC has cut down production.
Interest rates may remain low, though, despite this, Nigerian business entrepreneurs cannot expect single-digit interest rates.
“Foreign reserve and government reserves will remain under pressure in the coming months. The World Bank says that this is the worst year so far, going back to the great depression and this is what I think as well. This is probably going to be the worst economic crisis we have seen,” Wale said.
He added that with the exception of industries in the Healthcare sector, telco companies, digital technology companies, and food producers, other sectors could very well expect a big hit.
Business
Why risk your life when you can bank with V by VFD (VBank or V)
Unlike other apps that are laced with either unbidden and hidden charges, V is free, as there are no charges for customers whether they are transferring money to another customer of V or another bank.
The recent lifting of the lockdown has seen Nigerians rush to the banks to execute banking transactions that they have missed in the last five weeks.
Saying that this action or mis-action contravenes the physical distancing preached by the health agencies and government, is only stating the obvious. By doing this, they endanger themselves, and other family members whom they return to after their day at the bank.
But what if it was possible to do all your banking from your phone?
V to the rescue
V disrupted the banking industry when earlier this year, it launched a highly optimized virtual bank app that enables users to carry out all banking transactions with ease and from their phones.
Users are able to create and set up a bank account with the app within 5 minutes and start carrying out transactions immediately.
Of course it doesn’t matter if you already have an account with the traditional banks. There’s always room for pleasant disruptions, aren’t there?
What they offer
VBank was launched as Nigeria’s first fully virtual bank to close the gap which hitherto existed between established traditional banks and their customers. That means there are no barriers between the bank and its teeming customers and potential customers.
Unlike other apps that are laced with either unbidden and hidden charges, V is free, as there are no charges for customers whether they are transferring money to another customer of V or another bank.
(READ MORE: VFD Group meets nutritional needs of residents of Olowogbowo community)
According to Azubike Emodi, MD/CEO, VFD Microfinance Bank, experts behind V are taking a consumer-centric approach with an aggressive feedback collection mechanism to build an app that meets the objectives of the customer.
The app, which is available for download on App store and google playstore allows users to monitor expenses and income, categorize budgets, and set spending limits. V is available to download by searching for “V by VFD” on App Store and Google Play store.
What else could one ask for in a bank?
Another landmark feature of V is referral functionality (Veelage), which is also connected to monthly financial reward. It allows interested users of V to earn income and advance though the V community simply by getting account holders signed up with a unique ID and maintaining an average balance.
About this unique feature, Olukunle Salami, Business Performance Manager, VFD Group Plc would say that It is a 2-way value proposition that ensures individuals can earn consistently for several months beyond the initial referral point.
Whoever guessed that we could earn from our bank?
Business
Total Health Trust Provides Covid-19 Relief for Healthcare Providers in Nigeria
Total Health Trust Limited is playing a leading role in the response through its strategic collaboration with healthcare providers
With rising costs and operational challenges due to the Covid-19 pandemic, this relief aims to support the scheme’s healthcare providers across the country.
As Nigeria continues its fight against the COVID-19 pandemic, Total Health Trust Limited (THT), a member of the Liberty Group, is playing a leading role in the response through its strategic collaboration with healthcare providers and their delivery of quality health care services in the country.
THT has created a COVID-19 relief initiative for its network of healthcare providers to help ensure that Nigerians continue to have access to the healthcare they need during this challenging time. Through this initiative, THT is supporting healthcare providers to mitigate the impact of the epidemic by covering the cost of protective disposable equipment, such as masks and gloves, for consultations, as well as technical support for exposure to COVID-19 related cases.
In a statement recently released by THT, Nigeria’s leading Health Maintenance Organisation, the CEO Kieran Godden applauded the intensive efforts of healthcare professionals in curtailing the spread of the virus. “We at Total Health Trust, and indeed the whole country, remain very thankful to our health professionals, the NCDC and the State Ministries of Health for the immense and co-ordinated role they continue to play in ensuring that the country records ongoing success in the fight against this pandemic” he said.
“At Total Health Trust, we are concerned about the well-being of healthcare providers and the risks they face to ensure a healthier Nigeria. We understand their concerns in managing their own exposure to suspected Covid-19 cases, while providing medical care to citizens. As such, we are focusing our efforts on providing the necessary protection in the fight against COVID-19.”
“Furthermore, our commitment to delivering the highest level of support to our network of healthcare providers continues, especially at a time when their operations and needs are quickly changing.” said Godden .
“As a responsible corporate organisation, with a purpose to make Nigeria healthier, we are contributing to the fight against the virus by empowering our healthcare centres across Nigeria to continue delivering essential health and wellbeing services. We urge other corporate organisations and sector leaders to play their part as we overcome this disease together as a nation” he added.
(READ MORE: Aliko Dangote donates mobile COVID-19 testing lab to Kano State)
About Total Health Trust Limited
Total Health Trust (THT), a member of the Liberty Group, is a proudly Nigerian company with a pan-African foot print working to make Nigeria healthier. We are the leading Health Maintenance Organization (HMO) dedicated to serving SMEs, corporates and multinationals in Nigeria. With a demonstrated track record of providing affordable and reliable healthcare services and solutions of more than 18 years , we understand healthcare and know the needs of those we serve. Our pan-African footprint enables us to leverage world class solutions together with local expertise as well as a network of over 7 000 healthcare providers to deliver better health care results.
The organisation has offices in all geopolitical zones of the country and is headquartered in Lagos.
