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Coronavirus

Efficient Power: Addressing a Critical Element in Nigeria’s Agro-Industrial Revolution

Agriculture sector is back in the spotlight as a viable foundation for sustainable and inclusive growth for Africa’s largest economy and most populated country.

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Agritech, Efficient Power: Addressing a Critical Element in Nigeria’s Agro-Industrial Revolution

As Nigeria’s government comes to grips with the economic slowdown that has followed the global spread of the novel Coronavirus, known as Covid-19, the agriculture sector is back in the spotlight as a viable foundation for sustainable and inclusive growth for Africa’s largest economy and most populated country.

However, to truly harvest the potential of the country, most observers agree that large scale agribusinesses and agro-processing must be an integral part of the government’s economic policy. Energizing that growth is a responsibility that public and private sector players must embrace. Given the unreliable supply of electricity from the grid, independent power projects (IPPs) are a viable alternative source of energy for the operations of agro-allied industries.

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The prospect of agribusinesses getting reliable power from the grid remains dim in the short term. It will take strong political will and significant private capital to fix several problems across the power value chain. Even if the public and private sector show such commitments, the required investments in generation, transmission and distribution infrastructure could take years to complete for industrial users to feel comfortable adopting the grid as a power source.

READ MORE: AfCFTA delay: A bane to Africa’s $3.4 trillion economic bloc

Supplying Energy Efficiently

This challenge presents an opportunity, and, in typical Nigerian fashion, some entrepreneurs are awake to the opportunity. Fenchurch Power, an infrastructure development company with operations across Nigeria is one such example. Following its successful capital raise, the firm aims to add 150 megawatts of IPP capacity to the country over the next 5 years to power a range of industries, including the agriculture sector. There is a huge opportunity in the supply of energy to power agro-allied and manufacturing industries in Nigeria. For these players to compete locally and in the international market, they must not only provide the energy to fuel agro-allied operations, but they must also do so in the most efficient way possible.

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Unrealized Potential

Agriculture remains the mainstay of the Nigerian economy, providing the main source of livelihood for most Nigerians. With over 80 million hectares of arable land and a population of over 200 million people, the potential for business success is huge. However, the sector faces many challenges, notably an outdated land tenure system that constrains access to land, a very low level of irrigation development, limited application of research and new technologies, and the inefficient distribution and high cost of farm inputs. Other constraints to the growth of investment in the sector are poor access to credit, ineffective procurement and distribution of inputs, inadequate storage facilities and poor access to markets.

READ MORE: Manufacturers, construction companies to receive waivers from Lagos State during lockdown ease-up phase

As a result, according to the National Bureau of Statistics, the value of agricultural goods imported into the country have risen steadily over the last 4 years to N959 billion in 2019 while exports have declined over the same period to N269 billion. Notably, exports are also almost exclusively made up of raw materials, denying the country of the higher revenues that come with adding value to raw agricultural products.

As part of its programme to catalyse the growth of the agricultural sector, the federal government has announced plans to establish special agro-industrial processing zones (SAPZ) in collaboration with the African Development Bank. Given the infrastructure and other incentives that such zones will offer agribusinesses, they have the potential to support the growth and emergence of export-oriented agribusinesses.

Grid Supply Void

IPPs are a logical solution to addressing the current challenges that prevent industrial users from adopting distribution companies as a reliable source of electricity. Several factors across the power value chain prevent distribution companies from becoming reliable suppliers to industrial users. A case can be made for the distribution companies to have power at the medium voltage end of the value chain. This helps to eliminate some of the technical and commercial losses experienced and allows the discos to receive more power into their network to feed industries. According to a recent Price Waterhouse Coopers report, only a fraction of power generated ends up with industries. This clearly shows a significant gap that must be filled. There should also be more partnerships between independent power plant developers and the distribution companies. These partnerships will significantly increase the revenue profiles of both parties and reduce the size of the alternate market for generators. Greater integration between the gas suppliers and the power generating business is also an important dynamic that will evolve from the increased usage of IPP solutions.

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READ MORE: A trip to Sura Market reveals the good and bad of its Independent Power Project

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Powering Large Scale Agro-Investments

In the meantime, large scale agro companies such as Flour Mills, Olam, Honeywell Group and the Dangote Group, have invested billions of naira in a wide range of projects across the country. Many of these investments are unlikely to be within the proposed SAPZs. These companies, therefore, have to make the most of the opportunity where they are cited. An important part of that effort is to be an efficient producer.

Due to the unreliable energy from the national grid, these companies have invariably invested in alternative power projects to support their operations. However, the development and operations of these power assets is not the core business of these large scale agro companies and is, therefore, inefficient use of capital that could fund the expansion of their core businesses. They are best suited to focus on increasing production, quality control and business development.

While electricity is a vital resource for agribusinesses, investing in power generation projects is inefficient for several reasons. First, the investment is a distraction from their core business. In addition to managing often problematic production value chains, agribusinesses bear the burden of running power generating plants and the responsibilities associated with the staffing and maintenance of these facilities. Second, because these companies are focused on generating reliable power for their operations, they are unable to optimize the value of the power generating assets.

READ MORE: Reps to probe FG’s N3.4 billion failed solar power project

Case of Telco Style Efficiency

In the search for a more efficient model, the mobile telecom industry presents an example of a sector that has embraced the concept of outsourcing to achieve greater efficiency. After the Nigerian government-issued licences to mobile telecom operators in 2001, an essential part of the investment required to achieve national coverage was the construction of cell towers. A decade later, most telcos have shied away from investing in cell towers and have embraced the idea of selling these assets to third party companies such as Helios Towers and IHS that are better equipped to optimize the value of these assets.

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Retooling Energy for Agribusiness

There are several options for agribusinesses seeking a path to greater energy efficiency. By partnering with the host state governments, distribution companies, and large corporations, power infrastructure companies can execute customized power purchase agreements (PPAs) that will underpin independent power projects for specific industries. Furthermore, where such contracts exist, power infrastructure companies with greater capacity are willing to purchase the underlying power assets from providers with constraints to meeting the terms of their contracts. They can also purchase power assets from agribusinesses and then execute a PPA which will guaranty the supply of electricity to the firm. A key to delivering power efficiently to multiple users is having a business model that is built to do exactly that. Properly structured power infrastructure companies are able to accommodate a variety of scenarios and deliver solutions that optimize the peculiar conditions that confront agribusinesses.

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Covid-19 Wake Up-Call

The full or partial lockdowns and the associated decline in demand for goods and services that have followed the outbreak of Covid-19 in Nigeria present a significant challenge for businesses operating in Nigeria. A key to wading through the difficult times is to innovate in ways that not only expand the markets for producers with a view to boosting revenues but also reconfigure the cost base for operations. Outsourcing electric power supply presents one way to improve the operational efficiency of agribusinesses going forward. Power infrastructure firms such as Fenchurch Power are strategically positioned to revolutionise how players achieve much-needed efficiency.


This article was written by Funso Adeyemi. Adeyemi is the COO of Fenchurch Group, an Africa-focused Energy, Power, and Infrastructure conglomerate driven by the passion to bridge the energy gap of Africa.

Nairametrics frequently publishes articles from experts such as financial analysts, economists, researchers and investors. We also feature articles from guest writers and bloggers who wish to push their views and opinions through our platform. To get your articles on Nairametrics, kindly send an email to info@nairametrics.com and we will publish it within 24 hours of approval by our editorial team.

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Coronavirus

Covid-19: Timeline of every pronouncement made by Nigeria to support the economy.

Timeline of every action announced since the outbreak hit Nigeria.

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IMF, COVID-19, CBN OMO ban could give stocks a much-needed boost , CBN’s N132.56 billion T-bills auction records oversubscription by 327% , Nigeria pays $1.09 billion to service external debt in 9 months , Implications of the new CBN stance on treasury bill sale to individuals, Digital technology and blockchain altering conventional banking models - Emefiele  , Increasing food prices might erase chances of CBN cutting interest rate   , Customer complaint against excess/unauthorized charges hits 1, 612 - CBN , CBN moves to reduce cassava derivatives import worth $600 million  , Invest in infrastructural development - CBN Governor admonishes investors , Credit to government declines, as Credit to private sector hits N25.8 trillion, CBN sets N10 billion minimum capital for Mortgage firms, CBN sets N10 billion minimum capital for Mortgage firms , Why you should be worried about the latest drop in external reserves, CBN, Alert: CBN issues N847.4 billion treasury bills for Q1 2020 , PMI: Nigeria’s manufacturing sector gains momentum in November, CBN warns high foreign credits could collapse Nigeria’s economy, predicts high poverty, MPC Member, BVN, Fitch, Foreign excchange (Forex), Overnight rates crash after CBN’s N1.4 trillion deduction

The number of people living with the Coronavirus Disease (COVID-19) and deaths from it have been on the increase daily.

The Federal Government and its relevant agencies, especially the Central Bank of Nigeria, have responded with policies to cushion the economy, restore investors’ confidence, and support Small and Medium Enterprises (SMEs) and households.

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A look at some of the initiatives:

MAY 28. 2020

Central Bank of Nigeria has approved and disbursed N10.5 billion out of the N100 billion credit intervention on the healthcare industry to cushion the impact of the Coronavirus on the operators in the sector.

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The apex bank disbursed the fund for the establishment of advanced diagnostic and health centres and the expansion of some pharmaceutical plants for essential drugs and intravenous fluids

According to the CBN boss, the apex bank had stipulated the requirements to access the funds. Part of it is that a corporate entity must submit its application to a participating financial institution (PFI) which could be either a Deposit Money Bank or a Development Finance Institution of its choice with a bankable business plan.

 

The Monetary Policy Committee of the Central Bank of Nigeria decided by a unanimous vote to reduce the Monetary Policy Rate (MPR) from 13.5% to 12.5% and to hold all other policy parameters constant. Seven (7) members voted for a reduction of the policy rate by 100 basis points, two (2) members by 150 basis points and one (1) member by 200 basis points.

Highlights of the MPC’s decisions:

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I. Reduce the MPR to 12.5 per cent;

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II. Retain the Asymmetric Corridor of +200/-500 basis points around the MPR;

III. Retain the CRR at 27.5 per cent; and

IV. Retain the Liquidity Ratio at 30 per cent.

The Committee maintained that although a sharp decline in output growth is expected in Q2 2020 and maybe the third quarter if the current stimulus initiatives are properly implemented, the economy would reverse to positive growth by the fourth quarter.

 

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MAY 27, 2020

Central Bank of Nigeria (CBN), approved regulatory forbearance to restructure credit facilities in the Other Financial Institution (OFI) sub-sector.

The apex bank reduced the interest rates on its facilities through participating financial institutions from 9% to 5% per annum for a year with effect from March 1, 2020.

 


 

MAY 21, 2020

CBN introduced N100 billion credit intervention scheme to mitigate the impacts of COVID-19 on businesses, particularly those in the health sector. The scheme, which was planned to be funded from the Real Sector Support Facility – Differentiated Cash Reserves Requirement, is to have an interest rate of 5% per annum until March 1, 2021, when it will revert back to 9%.

The apex bank insisted that the money would be given to people that would import or source for foreign exchange for materials that can be source locally

CBN also postponed the much-awaited  May 2020 Monetary Policy Commission (MPC) meeting. The meeting that was earlier scheduled for Monday and Tuesday, May 25 and 26, 2020,  was shifted to Thursday, May 28, 2020. This is as a result of the
declaration of Monday and Tuesday, May 25 and 26, 2020, as Eid-el Fitr holidays.

The apex bank assured that it has put in place all necessary machinery for the meeting to now hold for only one day on account of the on-going COVID-19 national lockdown and to align this meeting with extant rules of the Presidential Task Force (PTF) on COVID-19 and advisories from other relevant agencies.

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MAY 19, 2020

The Central Bank of Nigeria (CBN) tasked industrial conglomerates operating in the country to support efforts of the government to grow the nation’s economy and return it to its green days. CBN Governor, Godwin Emefiele, warned that the apex bank would not support the importation of items that could be produced in Nigeria.

In a virtual meeting with Chief Executive Officers (CEOs) of conglomerates in Nigeria, Emefiele explained that the CBN, in line with President Muhammadu Buhari’s desire, was determined to return the Nigerian economy to the period when the manufacturing and agricultural sectors formed the base of the economy.

READ ALSO: Central banks digital currencies pose a threat against the U.S dollar

 


MAY 18, 2020

The Central Bank of Nigeria (CBN) tasked industrial conglomerates operating in the country to support efforts of the government to grow the nation’s economy and return it to its green days. CBN Governor, Godwin Emefiele, warned that the apex bank would not support the importation of items that could be produced in Nigeria.

In a virtual meeting with Chief Executive Officers (CEOs) of conglomerates in Nigeria, Emefiele explained that the CBN, in line with President Muhammadu Buhari’s desire, was determined to return the Nigerian economy to the period when the manufacturing and agricultural sectors formed the base of the economy.

 

 


MAY 18, 2020

The Federal Government of Nigeria extended the gradual easing of the COVID-19 lockdown across the country by two weeks.

Chairman of the Presidential Task Force (PTF) on COVID-19, Boss Mustapha, stated that in spite of the modest progress made, the country is still not yet ready for full reopening of the economy and said that tough decisions have to be taken for the good of the greater majority.

Central Bank of Nigeria (CBN) also signed an agreement with the Nigerian National Petroleum Corporation (NNPC) to spend as much as N1 billion as quarantine costs for about 3,000 Nigerian returnees.

The decision by the duo regulator was disclosed by Nigeria’s Foreign Affairs’ Minister, Geoffrey Onyeama. According to Onyema, this is a CSR gesture by the CBN and the NNPC. The N1 billion is expected to cover the costs of hotel accommodation and the feeding of the returnees

READ ALSO: Covid-19: CBN wants to fund research for Nigerian Made vaccines

 

 


MAY 16, 2020

Federal Government announced that new Micro Small and Medium Enterprises (MSMEs) will access National Agency for Food and Drugs Administration and Control (NAFDAC) registration of their products at an 80% discount, over the next 6 months.

This concession covers MSMEs that are into production of foods, drugs, and related consumables. As an added incentive, the first 200 micro and small businesses to register on the e-platforms will be allowed to do it at no cost – zero tariffs.

In view of current economic challenges faced by businesses due to the pandemic, the government has also authorised NAFDAC to grant a waiver on administrative charges for overdue/late renewal of expired licenses of products for a period 90 days.

 

 


MAY 12, 2020

CBN disclosed that it was developing a framework to provide financial support to aid the fight against Coronavirus Disease in the country. According to Emefiele, the fund would be released as soon as the vaccine was validated by health authorities.

 


MAY 10, 2020

CBN assured foreign investors that repatriating their funds from the country was secured despite forex related revenue shortages due to the drop from the sale of crude oil globally.

The apex bank had put in place policies to ensure an orderly exit for those that might be interested in doing so and also urged investors to be patient as such repatriations were being processed, owing to the Bank’s policy of orderly exit of investments.

 

 


MAY 3, 2020

CBN and the Bankers’ Committee ordered all banks in the country not to retrench or lay-off any staff of any cadre (either full-time or part-time). The apex bank also said that its approval must be sought if it became absolutely necessary to lay-off any such staff.

 


MAY 2, 2020

The Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance bank, on behalf of the Central Bank of Nigeria (CBN), started the disbursement of the N50 billion Targeted Credit Facility (TCF) to beneficiaries.

The facility is a stimulus package which was introduced by CBN, to help mitigate the impact of the coronavirus pandemic on households and MSMEs.

 


APRIL 30, 2020

CBN extended the deadlines issued to Microfinance banks (MFB) to comply with its revised minimum capital requirements.

 

 


APRIL 29, 2020

CBN resumed the sales of dollars to SMEs who need foreign exchange for essential imports, as well as Nigerian students in foreign schools who need to pay their school fees.

This comes as the world-wide COVID-19 lockdown begins to ease up, even as business activities are expected to gradually return to normal. In view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria.

 

 


 

APRIL 28. 2020

The apex bank lifted the temporary suspension placed on cheque clearing in the country with effect from Tuesday, April 28, 2020.
In the circular, it explained that it lifted the suspension in furtherance of its efforts in the development of a safe and efficient payment system in the country.

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The executive board of the International Monetary Fund (IMF), approved $3.4 billion as Rapid Financing Instrument (RFI) as fiscal support to Nigeria during this period of coronavirus pandemic.

The fund that was requested by Nigeria is to be used to mitigate the impact of the coronavirus pandemic on Nigeria’s economy as the country grapples with dwindling government revenue and an economic crisis following the crash of crude oil prices globally.

READ ALSO: CBN discloses conditions for assessing N100 billion credit facility, addresses ‘process problems’


APRIL 14, 2020

In preparation for post-COVID-19, CBN announced four major areas of focus. They are:

Provision of affordable housing: Here the CBN will create an intervention fund which will target housing construction by developers who provide proof of profiled off-takers with the capacity to repay the loan.

The BVN will be used to verify the information given by the off-takers before the developers can access the facility. The CBN will also assist the mortgage finance sub-sector, assist land administration agencies at the states to build capacity for prompt processing and issuance of land titles.

Renewable energy: The CBN, over the next three years, will be providing financial support to environmentally friendly energy production, as this has tangential long term health benefits.

Cutting edge research: Also, the bank will be providing funding and encouraging efforts aimed at driving innovation and research in every sector through our universities, research institutions, creative industry initiatives and so on.

Light manufacturing: The apex bank plans to set up a N500 billion intervention fund over a medium, and targeted at manufacturing firms for the procurement of state of the art machinery and equipment and automated manufacturing models that would fast track local production. It will also help increase the patronage of locally processed products.

CBN intends to close the funding gap needed for the replacement of machinery and equipment in order to enhance local production.

 

 


MARCH 30, 2020

* The Federal Government also gave a directive that all economic and social activities in Ogun, Lagos States and Federal Capital Territory should be suspended for two weeks. The lockdown affected the movement of people across the states, except for people in the essential services sectors.

• CBN suspended the clearing of all cheque instruments in the Nigerian Clearing System. According to the bank, the directive was intended to “ensure hitch-free clearing and settlement activities” during the previous 14-day lockdown.

CBN’s suspension was based on the earlier envisaged two-weeks lockdown which was later extended to about 5 weeks.

 

 


MARCH 27, 2020

CBN and the Banker’s Committee formed the Nigerian Private Sector Coalition Against COVID-19. The apex bank explained that the coalition was in partnership with the private sector, led by Aliko Dangote Foundation and Access Bank.

 


MARCH 25, 2020

Following the request of the Association of Bureau de Change Operators of Nigeria (ABCON) to declare market holiday on its members’ weekly bidding, the CBN suspended the sales of foreign exchange to operators of Bureau de Change.

 


MARCH 24, 2020

The Monetary policy committee unanimously voted to:
• Retain the MPR (Monetary policy Rate) at 14%.
• Retain the asymmetric corridor at +200/-500 basis points.
• Retain the CRR (Cash Reserve ratio) at 27.5% and retain liquidity ratio at 30%.

 


MARCH 20, 2020

• The CBN officially devalued the naira by 15% moving from N307/$1 to N360/$1. Depreciation at the “market-determined” I&E window is 5%, having moved from N360/$1 to N380/$1.

• CBN sold dollars to banks at N380/$1 in a move signifying a devaluation of the currency. Banks trading at the Investor and Exporter (I&E) window bought dollars at N360/$1 from the CBN on Friday, March 20, 2020. The I&E window is the official market where forex is traded between banks, the CBN, foreign investors, and businesses

 

 

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Coronavirus

CBN disburses N10.5 billion out of N100 billion credit to healthcare industry

The bank has approved and disbursed N10.15billion for some projects for the establishment of advanced diagnostic and health centres and the expansion of some pharmaceutical plants for essential drugs and intravenous fluids.”

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COVID-19: NCDC equips testing centres in Ibadan, Abakaliki as figures continue to rise, CBN discloses conditions to assess N100b facility, identifies problems in processing facility

Out of the N100 billion credit intervention meant for the healthcare industry, the Central Bank of Nigeria (CBN) has disbursed N10.5billion to cushion the impact of the Coronavirus on the sector.

This was disclosed by the CBN Governor, Godwin Emefiele, in Abuja at the end of the MPC 273rd meeting held virtually.

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According to the CBN boss, the apex bank had stipulated the requirements to access the funds. Part of it is that a corporate entity must submit its application to a participating financial institution (PFI) which could be either a Deposit Money Bank or a Development Finance Institution of its choice with a bankable business plan.

The guidelines stated that the PFI must appraise and conduct due diligence on the application; and upon approval by the PFI’s credit committee, the application would be submitted to the apex bank with relevant documents attached.

The CBN would process and disburse funds to the PFI for onward release to the project. It stated that the PFI must receive and review applications submitted by its customers; undertake due diligence based on normal business considerations, and bear the credit risk.

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They must also issue offer letters and forward qualified applications to the CBN; disburse the released funds to successful applicants; monitor the project and recover the loans from the beneficiaries, and maintain adequate records of all beneficiaries and facilities.

Emefiele said, “The committee recognised that under the N100bn healthcare sector intervention fund, the bank has approved and disbursed N10.15bn for some projects for the establishment of advanced diagnostic and health centres and the expansion of some pharmaceutical plants for essential drugs and intravenous fluids.”

 

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Coronavirus

CBN disburses N50 billion loans through MFBs’ IT platform

It aims to enhance financial access, inclusion and sustainability of the microfinance institutions on value chain financing and ensure the growth of the small and medium scale enterprises.

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CBN-Governor-Emefiele, Investors’ and Exporters’ forex window aided Naira stability – Emefiele , external reserves, Financial Inclusion: CBN licensed 15 mobile money operators – Emefiele , Rates continue to decline as banks struggle to meet CBN’s 65% minimum LDR, CBN releases new guidelines, to fine banks N2 million over customers’ complaint , CBN: FG fell short of monthly allocated collected revenue by N388 billion, CBN issues new rule for use of PoS, merchants to face sanction after deadline, CBN may devalue naira in 2020 as experts highlight red flags in the economy, CBN appoints and redeploys directors within its ranks, Banks look to lending rates for revenue, as slash on e-transaction charges affect operations, CBN discloses currency in circulation worth N2.44 trillion, CBN to commence recycling of mutilated naira notes, Agriculture: CBN's revised policy on the dairy industry, CBN condemns foreign money transfers to Nigeria, Experts outline effect of CBN’s longer term contract, Bank’s lending rates decline albeit slower than expected, CBN releases new capital base, sanctions for Microfinance Banks, CBN reveals banks’ foreign assets rise to N14.19 trillion in 2019, CBN insists on no devaluation, threatens to sanction those responsible for false speculations, CBN considers interest rate cut as trade, economy decline over Coronavirus, Defending the naira at a cost, CBN announces initial policy response to COVID-19, CBN stops oil companies from selling dollar to NNPC, here’s why, Amid Coronavirus spread, CBN directs staff to stay at home, External reserves to fall below $30 billion, more forex restrictions expected, UPDATE: Fitch downgrades Nigeria's IDR to "B", says CBN's remedial policy not enough, What constitutes Nigeria’s external reserves?, CBN to create housing funds for developers, Nigeria Trade: CBN reviews exchange rate for cargo imports, Nigerian Fintechs re-strategize with CBNs’ postponement of revised MFB license regulations

The Central Bank of Nigeria (CBN) is disbursing the N50billion COVID-19 Targeted Credit Facility meant for Households and Micro, Small and Medium Enterprises (MSME) that are affected by the killer disease via the Integrated National Association of Microfinance Banks Unified IT Platform (NAMBUIT) deployed by Inlaks.

NAMBUIT is a unified information technology built by Inlaks to service Microfinance banks on behalf of CBN and NAMBs. The innovation was designed to boost financial access, inclusion and sustainability of the microfinance institutions on value chain financing and ensure the growth of the small and medium scale enterprises. The NAMBUIT Platform, according to the Inlaks, is powered with a sophisticated Loan module for the management of the total life cycle of the over 80,000 loans that will be disbursed for this scheme.

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Chief Executive Officer, African Operations, Inlaks. Femi Adeoti, explained that the platform runs on Temenos T24 Inclusive Banking Suite (IBS), and implementation is being managed by Inlaks, a system integrator in Sub-Saharan Africa, in line with global best practices, with support from the CBN.

“NAMBUIT is Software as a Service (SaaS) platform that reduces operational costs as well as improves the bank’s ability to provide necessary information to agencies such as CBN and NDIC. The unified platform comprises a core banking system and sub-systems for agent banking, non-interest banking, and mobile payment among other services.

“A core benefit of the NAMBUIT platform is the smooth on-boarding of the microfinance banks (MFBs) into the national payment system lowering the operating costs of MFBs significantly. This has been significant, especially in the context of developing economies, where many low-income households and micro-enterprises do not have ready access to financial services.”

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The CBN had introduced the N50bn Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic. The N50bn intervention is financed from the Micro, Small and Medium Enterprises Development Fund. The loan amount is determined based on the activity, cash flow and industry size of the beneficiary, subject to a maximum of N25m for SMEs. Households with verifiable evidence of livelihood adversely impacted by COVID-19 can access the loan to a maximum of N3m.

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