The Central Bank of Nigeria (CBN) has revealed the implementation framework for the Nigerian Youth Investment Fund.
This was disclosed in a publication by the Development Finance Department under the auspices of the Central Bank of Nigeria.
The CBN stated that the Nigerian Youth Investment Fund (N-YIF) would be funded through NIRSAL MFB window, with an initial take-off seed capital of N12.5 billion.
The N-YIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.
Objectives of the scheme:
Improve access to finance for youths and youth-owned enterprises for national development.
Generate much-needed employment opportunities to curb youth restiveness.
Boost the managerial capacity of the youths, and develop their potentials to become the future large corporate organizations.
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The fund targets young people between the ages of 18 and 35 years.
Beneficiaries of NMFB, TCF and AgSMEIS loans, and other government loan schemes that remain unpaid are also not eligible to participate.
Individuals (unregistered businesses) shall be determined based on activity/nature of projects subject to the maximum of N250,000.
Registered businesses (Business name, Limited Liability, Cooperative, Commodity Association) shall be determined by activity/nature of projects subject to the maximum of N3.0 million (including working capital).
The tenor of the intervention is for a Maximum of 5 years, depending on the nature of the business and the assets acquired, of which interest rate of not more than 5% under the intervention shall be charged annually.
The Federal Ministry of Youth and Sports Development (FMYSD) will collaborate with relevant stakeholders to identify potential training for training/mentoring.
The youths that are duly screened (and undergo the mandatory training where applicable) shall be advised to login to the portal provided by the NMFB to apply for the facility.
CBN Governor says Nigeria’s external reserves sufficient to cover 7-months import
The CBN Governor has insisted that Nigeria’s current external reserves is sufficient to cover 7 months of imports of goods and services.
The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has said Nigeria’s external reserves, which is currently at $35bn, is sufficient to cover 7 months of imports of goods and services.
This disclosure was made by Emefiele at the 55th Annual Bankers Dinner organized by the Chartered Institute of Bankers of Nigeria in Lagos on Friday.
He pointed out that like other emerging market countries and countries that rely on earnings from oil exports, the decline in crude oil earnings, as well as the retreat by foreign portfolio investors, significantly affected the supply of foreign exchange into Nigeria.
Emefiele said, “Our external reserves currently stand above $35bn and are sufficient to cover seven months of import of goods and services.’’
‘’In order to adjust for the decrease in the supply of foreign exchange, he said the naira depreciated from N305/$ to N360/$, and subsequently to N380/$.’’
“With the decline in our foreign exchange earnings and successive exchange rate adjustments, the CBN has continued to implement a demand management framework, which is designed to bolster the production of items that can be produced in Nigeria, and aid conservation of our external reserves.
“Due to the unprecedented nature of the shock, we continued to favour a gradual liberalization of the foreign exchange market in order to smoothen exchange rate volatility and mitigate the impact which, rapid changes in the exchange rate could have on key macro-economic variables.’’
“This we believe is in line with international best practices in countries where managed float arrangements are in operation,’’ he said.
The CBN Governor reiterated that the measures being put in place by the authorities to improve the non-oil exports and other sources of foreign exchange had helped to prevent a significant decline in the country’s reserves.
What you should know: External reserves management according to the CBN act, is guided by core objectives like providing a level of confidence to markets that a country can meet its external obligations, hedging the domestic currency, limiting external vulnerability and providing adequate liquidity to finance day-to-day official transactions and unforeseen needs.
This will also help the CBN maintain some stability in the foreign exchange market in the next few months. The continuous drop in the country’s external reserve will impact negatively in the forex market which has already been under intense pressure for some months.
Fidelity Bank notifies stakeholders on 2020 financial statement audit
Fidelity Bank has notified investors, the general public, and stakeholders of the commencement of its 2020 Annual Financial Statement audit.
In compliance with its corporate governance practice, Fidelity Bank Nigeria Plc has notified investors, the general public, and other relevant stakeholders of the commencement of its 2020 Annual Financial Statement audit.
This was announced through a notification signed by the bank’s Secretary, Ezinwa Unuigboje, and sent to the Nigerian Stock Exchange market, as seen by Nairametrics.
What they are saying: A part of the recently released press statement reads thus: “This is to inform the Nigerian Stock Exchange (The Exchange) and the general public that the audit of Fidelity Bank Plc’s (the Bank) 2020 Annual Financial statements has commenced in line with the Bank’s corporate governance practice.”
What you should know: In lieu of the already outlined facts, the bank further posited that the trading window of its shares would be closed to all insiders from December 1, 2020, until 24 hours after the release of the bank’s audited statements for the year ended December 31, 2020.
What to expect: The bank, through its press release, revealed that upon the completion of the audit, the financial statements would be forwarded to the Central Bank of Nigeria for approval, and subsequently published in accordance with the Nigerian Stock Exchange Rule Book and other relevant laws.
Hence, the bank expects to publish its Audited Financial Statements for the year ended December 31, 2020, on or before March 31, 2021.
Stanbic IBTC Holdings Plc establishes its wholly-owned life insurance subsidiary
Stanbic IBTC Holdings Plc has announced the establishment of its wholly-owned life insurance subsidiary.
Stanbic IBTC Holdings Plc (“Stanbic IBTC” or “the Company”) announced that it has obtained all required Regulatory Approvals, in a bid to complement and diversify its range of product offerings.
This includes a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary to be referred to as Stanbic IBTC Insurance Limited (“SIIL”).
The notification was revealed today through a press release, signed by the Bank’s Secretary, Chidi Okezie, and sent to the Nigerian Stock Exchange market today.
What you should know
Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with major business focus on three pillars – Corporate and Investment Banking, Personal and Business Banking, and Wealth Management.
Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
The largest shareholder of the Group is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding.
Why this matters
The recent corporate action by the bank is aimed towards diversifying the service offerings by the bank and advancing its frontiers as A leading end-to-end financial solutions provider in Nigeria.
In lieu of this, Stanbic IBTC Insurance Limited aims to provide insurance for financially included individuals and become the preferred insurer in the Life Insurance Business.