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ITFC signs $750m agreements with OIC member countries, others

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The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), has signed 12 major agreements with Algeria, Cameroon, Tajikistan, the Republic of Togo, and Uzbekistan. 

ITFC also signed agreements with regional partners – Afreximbank, ECOWAS, and Bank for Investment and Development (EBID) to support investment and development.

The MoU also involve OCP Africa to establish an innovative financing mechanism for farmers.

The agreements will provide access to financial resources in order to facilitate the development of the private sector and stimulate economic growth.

They will also cater to the development of a more efficient and effective trading system that will allow for more efficient and secure imports and exports.

Furthermore, a Memorandum of Understanding between ITFC and the People’s Democratic Republic of Algeria was signed by Mr. Laaziz Faid, Minister of Finance, Algeria, and Eng. Hani Salem Sonbol, CEO of ITFC.

This agreement aims to increase exports to OIC countries, support the Algerian Islamic Banking sector, and its extension to other OIC countries, as well as provide support for Algerian private and state-owned companies.

A Murabaha Trade Financing Facility for $15 million was signed between ITFC and the Republic of Cameroon with Compagnie Camerounaise d’Aluminium (ALUCAM) as Executing Agency.

This financing is in line with the Cameroon Government’s plan to support the strategic development of the bauxite industry and will strengthen Cameroon’s industrial sector by securing ALUCAM’s supply of alumina and other raw materials to produce Aluminum.

An AATB Country Program for Cameroon was signed, focusing on capacity development in trade facilitation, promotion of export value chains, Islamic finance, e-commerce, and private sector development engagements for the next three years. The agreements were signed by H.E. Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development, and Eng. Hani Salem Sonbol, CEO of ITFC.

A Three-Year Framework agreement for US$100 million was also signed between ITFC and the Republic of Tajikistan to ensure close cooperation and coordination of efforts between the Government of Tajikistan and ITFC.

The agreement was signed by H.E. Mr. Zavqizoda Zavqi Amin, Minister of Economic Development and Trade of the Republic of Tajikistan, IsDB Governor, and Eng. Hani Salem Sonbol, CEO of ITFC.

ITFC signed a US$250 million Framework Agreement with The Republic of Togo to pave the way for an extension of the strategic partnership to three new key sectors including energy, agriculture, and the private sectors.

An agreement has also been signed as part of the AATB Country Program for Togo, which covers the country’s capacity development in trade facilitation, promotion of export value chains, Islamic finance, e-commerce, and private sector development engagements for the next three years.

The two agreements were signed by Eng. Hani Salem Sonbol, CEO of ITFC, and Madam Zourehatou Kassah-Traore, Minister of Public Works, the Republic of Togo.

In order to develop and expand shariah-compliant banking, ITFC, and ICD signed a Memorandum of Understanding with Al Salam Bank in Algeria that will explore opportunities for cooperation.

The agreement was signed by Mr. Huider Nasser, Al Salam Bank, and Eng. Hani Salem Sonbol, CEO of ITFC and Acting CEO of ICD.

Under the framework of a US$10 million trade finance facility, ITFC has signed a Line of Trade Financing Agreement with Agrobank, Uzbekistan to meet the trade financing needs of SMEs operating in the food and agriculture sectors.

The Murabaha financing agreement was signed by Mr. Rustam Mamatkulov, Chairman of the Management Board of Agrobank, and Eng. Hani Salem Sonbol, CEO of ITFC.

An additional Line of Trade Financing Agreement for $25 million Financing has been extended to Orient Finans Bank, Uzbekistan to meet the trade finance needs of private sector clients of the bank.

This financing will support and promote women’s entrepreneurship and green financing as well. The agreement was signed by Tokhir Djunaydullaev, The Chairman of the Board, Orient Finans Bank, Uzbekistan, and CEO of ITFC, Eng. Hani Salem Sonbol.

Furthermore, a Syndicated Murabaha Trade Financing Facility for $325 million was signed between ITFC and Afreximbank to support Afreximbank’s US$4 billion UKAPFA (Ukraine Crisis Adjustment Trade Financing Programme for Africa).

It seeks to assist its member countries mitigate the effect of higher commodity prices due to the conflict and to support the trade finance needs of the private sector and State-Owned entities.

The agreement was signed by Prof. Benedict Oramah, President, Afreximbank, and Eng. Hani Salem Sonbol, CEO of ITFC.

ITFC and The ECOWAS Bank for Investment and Development, a strategic regional bank of The Corporation in West Africa, signed a EUR25 million Murabaha Financing Facility to meet the trade finance needs of private sector clients of the bank.

Dr. Mabouba Diagne, Vice-President, Finance and Administration of EBID and Eng. Hani Salem Sonbol signed the agreement.

ITFC and OCP Africa signed an MoU Agreement that seeks to establish an innovative financing mechanism to provide farmer access to customized solutions and establish holistic solutions beyond just access to fertilizers to boost agricultural production yields and livelihoods for Africa’s smallholder farmers.

The agreement was signed between Dr. Mohamed Anouar Jamali, CEO, of OCP Africa, and Eng. Hani Salem Sonbol, CEO of ITFC.

debtors

Debt dangers in Africa: how defaults hurt people, and why forgiveness isn’t the answer

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By Philippe Burger, Dean of Faculty of Economic and Management Sciences, and Professor of Economics, University of the Free State

Public debt repayments in some African countries are at their highest levels since 1998. The Conversation Africa’s founding editor Caroline Southey talks to dean and economics professor Philippe Burger about the danger of debt problems some African countries face.

What’s behind the spike in debt servicing repayments?

For most countries experiencing new highs in debt servicing costs, it is not so much a spike, but rather a gradual increase over several years. As Figure 1 which uses data from the International Monetary Fund (IMF) shows, the Gross Debt of General Government (which includes central, provincial/state, and local government levels) steadily increased as percentage of GDP over the last 15 years (for brevity we will call this ratio the debt ratio). This period includes the global financial crisis as well as the COVID periods.

For emerging market and developing economies the debt ratio increased from 33.5% in 2008 to 64.6% in 2022.

Though at a slightly lower level, the same scenario played itself out for sub-Saharan African countries. With higher debt comes higher debt servicing costs. Although the COVID pandemic caused an accelerated increase in the debt ratio, the ratio was on an upward trajectory well before the pandemic.

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This trajectory can also be seen in individual countries. In Zambia the debt ratio was a mere 21.9% in 2007, but increased to 140.2% in 2020, when the government defaulted. In Ghana it was 22.6% in 2007, before quadrupling to 88.8% in 2022. The increase in the debt ratios in Zambia and Ghana can also be seen in the increase in their governments’ interest payments as percentage of GDP. In the case of Ghana, it increased from 1.4% in 2007 to 7.2% in 2022, while in Zambia it increased from 1.4% to 6%.

Ghana and Zambia have defaulted: what impact will this have?

A default often has a significant fallout in the economy, with governments, companies and households facing forced austerity. Governments must then cut back significantly on their expenditure, often in the face of shrinking tax revenues.

This often negatively affects social expenditure on for instance health and education. If such a country must knock on the door of the IMF for assistance, as both Ghana and Zambia had to do, the institution usually prescribes several tough policy and economic adjustments.

In early 2023 eleven of the top-20 borrowers from the IMF were African countries.

Egypt is the second largest borrower from the IMF, incurring loans in the aftermath of the political and economic instability that followed the Arab Spring in 2011.

The period leading up to a default is also often characterised by companies and households facing much higher inflation. This inflation often originates from a deep depreciation of the local currency because of capital flight of foreign and domestic investors losing confidence.

Both the Ghanaian Cedi and Zambian Kwacha depreciated significantly in the period leading up to their government’s default.

Which other African countries are on the watchlist: what stress signs should we be alive to?

Which countries to watch is a complex question. Although economists sometimes use rules of thumb, such as a debt ratio that exceeds say 60% or 90%, the answer depends on several variables. Thus, a high debt ratio is not always considered a problem.

For instance, at 121.7%, the debt ratio of the US is much higher than that of Ghana. Yet Ghana defaulted because the interest cost of its debt as percentage of GDP was much higher than that of the US (2.1% for the US).

Read more on Conversation

afr-poverty-rising-africa-poverty-report-780x439

X-raying a bloc’s fight against poverty in Africa

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Lucy Ogalue

Poverty, the inability to satisfy basic human needs is endemic in Africa. Unfortunately, the continent is blessed with enormous human and materials resources to meet its needs and stimulate growth and prosperity.

Many factors such as illiteracy and lack of good governance have been identified as being responsible for this. Recent global developments such as VCOVID-19 outbreak have made the matter worse.

According to the Economic Report on Africa 2021(ERA2021) inaugurated by the Economic Commission for Africa (ECA), the disruptions caused by the COVID-19 pandemic pushed an estimated 55 million Africans into extreme poverty in 2020.

The pandemic reversed more than two decades of progress in poverty reduction on the continent.

Reports show that in 2019, 424 million people in sub-Saharan Africa lived in severe poverty and 460 million in 2022.

Based on the Economic Development in Africa (ECA) Report 2021, Africa stands out as the most affected region in the world in terms of loss of income of poor households.

The Chief Economist of ECA, Hanan Morsy, says Africa currently accounts for more than half of the World’s poor at 54.8 per cent.

Morsy, during the 55th session of the Conference of African Ministers of Finance, Planning, and Economic Development in Addis Ababa, Ethiopia, said the continent faced a tsunami of global shocks that have exacerbated existing socio-economic operation and equity.

She said because of these shocks; the continent currently accounts for more than half of the world’s poor at 54.8 per cent.

“We have estimated 548 million Africans living in poverty in 2022 and 149 million at risk of falling into poverty in the same year.

“There is a skewed distribution across the continent in terms of concentration of these issues, with particularly East and West Africa having a higher share of poverty across regions,’’ she said.

Morsy said the situation was further exacerbated by existing inequalities, noting that even in times of high economic growth in Africa, the rate of inequality still rose.

“We need to pursue inclusive macroeconomic policies such as targeted and efficient spending and build resilience to future shocks at the household and community level.

“African governments need to enhance resource mobilisation. To do that, I think several measures would help, including closing tax loopholes.

“Africa loses 40 to 60 billion dollars annually in tax evasion. There’s also funding that can be raised through tackling issues of illicit financial flows,’’ she said.

Mr Adam Elhiraika, Director Macroeconomic Policy Division, ECA, said many African countries were struggling to meet the continent’s development goals due to the impact of severe and mutually reinforcing shocks.

According to Elhiraika, the continent has encountered severe developmental challenges due to increasing poverty, high inequality rates and a lack of decent jobs.

He reiterated that the COVID-19 pandemic, the Ukrainian war and the resultant food and energy crisis, rising inflation, debt tightening, and natural disasters were critical factors to the challenge.

He spoke at a recent at a meeting of experts to herald the 2023 Conference of African Ministers of Finance, Planning, and Economic Development in Ethiopia.

Elhiraika said the Africa’s growth dwindled from 4.6 per cent in 2021 to 3.6 per cent in 2022 and is anticipated to grow by 3.9 per cent in 2023.

“In 2022, an additional 18 million new poor emerged in Africa, with more than half the highest proportion of the world’s poor at 54.8 per cent.

“This is alarming because 546 million people were living in poverty in 2022, which is more than half of the continent’s population,” Elhiraika said.

To enable countries on the continent to advance, in spite of the challenges they encountered, the ECA pledged its unreserved commitment to support and provide shields where necessary.

Acting Secretary-General of ECA, Antonio Pedro, said Africa needs adequate financing to tackle poverty on the continent and cushion the vulnerable groups while meeting its long-term development objectives.

Pedro, at the conference, reiterated that evidence showed the effects of COVID-19, the war in Ukraine, the looming debt crisis, and climate change impacts characterised the deep and interlocking crises in Africa.

He said overcoming these challenges, occasioned by the overlapping crises, would require African countries to formulate innovative and multifaceted strategies that provide a range of policy options.

The acting secretary explained that implementing the agreement establishing the African Continental Free Trade Area (AfCTA) continued to be the blueprint for the African pro-poor economic recovery.

He said there was the need to expedite action on the agreement’s implementation, given its numerous benefits to member states, including resilience to shocks.

Similarly, the African Union Commissioner for Economic Development, Trade, Industry and Mining, Albert Muchanga, said African continental efforts alone were not sufficient to solve the problem.

He, therefore, urged the reform of the global value chain, focus on developing regional and continental value chains and the need for African countries to invest at least one per cent of their GDP in research and development.

Muchanga said the commission was designing a programme that would enable Africa to move from being a producer and exporter of raw materials to an exporter of manufactured goods, agro-processed foods, and services.

The commissioner, however, said Africa faced a climate finance challenge, which could lead to increased climate-induced poverty across the continent.

Meanwhile, highlighting some of the resolutions at the end of the conference, its Chairman/Ministerial Committee of Uganda, Henry Ariganyira, said women and youth empowerment was imperative for the continent’s development.

“Member States are called to leverage the agreement establishing the AfCTA to strengthen their resilience to future economic shocks and maintain sustainable growth.

“They should use it to create wealth and increase domestic resource mobilisation through prudent and targeted public spending, modernise the tax system and adopt home-grown fiscal and monetary reforms that attract small and medium-sized investors”, she said.

Experts say that to address its poverty challenge, African countries should look more inwards with a view to harnessing the continent’s abundant resources rather than depending on handouts and economic templates developed for the continent in foreign lands.

loans

Consumer protection commission and fight against illegal loan apps

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By Kayode Adebiyi

One customer of an online money lender had taken to social media to accuse the loan app of declaring him dead, and designing and circulating his obituary to family and friends.

Not long after, another customer revealed, through a Facebook group, how she was a victim of similar treatment from a loan app for defaulting in her repayment plan of the N15, 000 which she borrowed.

The cases cited above are just two out of thousands of similar scenarios involving online money lenders and their clients.

Perhaps the most popular tactic employed by those lenders, popularly known as loan sharks, to force repayement of loans is to send caveat SMS to the mobile contacts of their defaulters portraying them as people of questionable characters.

They also call defaulters’ contacts who are ignorant of their loan transactions with their friends, relations or colleagues in a bid to name and shame them or seek information about their whereabouts.

Worried by the prevailing abusive and arm-twisting practice, the Federal Competition and Consumer Protection Commission (FCCPC), in Nov. 2021, led a collaborative effort to address the situation.

Babatunde Irukera, Executive Vice Chairman/Chief Executive Officer of FCCPC, said then that the commission was working closely with the Independent Corrupt Practices Commission (ICPC), the National Information Technology Development Agency and the Central Bank of Nigeria.

“Continuing complaints about questionable repayment enforcement practices, including public shaming and violations of privacy, arbitrary, unjust, unreasonable, or exploitative interest rates and or loan balances calculations, harassment, and failure of consumer feedback mechanisms among others have led to significant and understandable consumer aggravation and dissatisfaction,” he said.

In May, Irukera confirmed that the FCCPC had taken strong action against loan apps and other firms violating the rights of Nigerian consumers by freezing 50 accounts belonging to illegal loan app operators.

“We have so far frozen 50 accounts. We have taken over 12 applications off the Google Play Store and we are in discussions with more than 10 companies right now.

“The rate of defamatory messages has dropped by at least 60 per cent. I am not saying they have stopped but they have dropped by at least 60 per cent.

“More than half of the companies that are currently before us have agreed that they will have to modify their behaviour, including sacking some employees who sent defamatory messages.

“We are developing a regulatory framework that will involve other regulators, and we are prosecuting at least one company right now,” he said.

Three months later, FCCPC directed payment systems operators, telecommunication companies and Mobile Network Operators (MNOs) to stop providing services that enable the operations of illegal online lenders.

It also said a Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending has been developed and adopted by the inter-agency Joint Regulatory and Enforcement Task Force to establish a clear regulatory framework for the sector.

But how did the activities of money sharks become so popular that they blatantly violate consumer privacy, fair lending terms and ethical loan recovery practices?

Experts have identified economic downturn, desperation, ease of borrowing and greed on the part of customers as some of the prevailing reasons for the proliferation of loan apps.

Michael Familokun, a financial expert, said loan apps were unpopular before the Nigerian economy went into a recession in 2016.

“Before 2016 there were loan apps in operation but cases of default and unethical repayment practices were very uncommon.

“Gradually money sharks started to exploit the hardship faced by the masses by dangling mouth-watering quick loan options without collateral at them.

“The situation went from bad to worse with the outbreak of CIVID-19, when many people’s sources of livelihood took a big hit, especially during lockdown,” he said.

Familokun added that, as many people no longer had disposable incomes, they had to rely on quick loans to deal with emergency situations.

“Mind you, emergencies don’t notify you that they are going to strike; that is why they are called emergencies.

“So, with no disposable income and in a terrible economy, when somebody’s loved one falls sick or there are other exigencies, what do they do?

“They can’t resist the temptation of opening their phones and downloading an app which has promised instant loan,” he said.

Mike Anyanacho, an ICT expert based in Lagos, said the ease of securing a loan without leaving the comfort zone has added to people falling victim of loan sharks.

“If you want a bank loan, conditions attached might discourage you. But with online apps, you just upload your BVN, ATM card number, passport photograph and other personal information.

“They don’t require salary account neither do they demand collateral security. They even don’t demand such things as your address and guarantors.

Anyanacho also said those loan apps feed on their victims’ greed.

“Some customers just take the loan because they have been promised an upgrade when they settle the previous credit facility.

“I know many people who take quick loans from one loan app to settle another in order to be upgraded,” he said.

While commending FCCPC for its clampdown on illegal loan apps which abuse consumer rights, he urged the commission to sensitise Nigerians on responsible ways to access loans.

Indeed, those who take loans from illegal loan apps cannot be completely exonerated from culpability. However, some experts say those money sharks are the real villains for violating extant laws.

Many of the illegal loan apps have hidden terms and conditions unknown to their customers until they start the repayment process.

For instance, some money sharks hosted on Google Play Store advertise 60 to 90 days repayment plans, only for customers to find out, upon securing a loan, that they have 15 to 30 days to settle.

Meanwhile, a check on Play Store’s policy on personal loan app states that:

“We do not allow apps that promote personal loans which require repayment in full within 60 days or less from the date the loan is issued (short-term personal loans).

“This policy applies to apps which offer loans directly, lead generators, and those who connect consumers with third-party lenders.”

There also have been reported cases of illegal loan apps defrauding victims through access to their BVNs, ATM card numbers and other personal information.

In spite of FCCPC’s commendable efforts, illegal loan apps still persist in both their operations and dehumanising loan recovery practices.

This calls for more collaboration between the commission and other relevant stakeholders in stemming the tide of the tyranny of many online money lenders.

Nigeria-Economy-Image

Growing Nigeria’s economy through deliberate diversification initiatives

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As Nigeria continues to grapple with economic challenges occasioned by varied local and global factors, stakeholders are pressuring the authorities to accelerate its economic diversification initiatives,

At a recent stakeholders’ forum in Abuja, some stakeholders called for a synergy between monetary and fiscal authorities to diversify the economy and create multiple revenue sources.

According to the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, the quest for building a more sophisticated economy is the major component of monetary policy.

Speaking at the 33rd Finance Correspondents and Editors Seminar recently, Emefiele said such an economy would be anchored on agriculture, MSMEs, industrial and manufacturing concerns.

He said that Nigeria had largely depended on the oil sector for revenue generation over the past four decades, adding that the sustained decline in crude oil production had continued to negatively undermine the performance of the economy.

“Thus, there is the urgent need for a conscientious effort to diversify to other non-oil sectors.

” It is important that we work to create an economy that will enable us feed ourselves, create jobs for our teeming youths and improve the standard of living of our people, with our population growing by over three per cent per annum over the past seven years, against a less than steady growth in output since 2019,” he said.

The CBN governor said that the production and industrial capacity of the economy must be given special attention to ensure overall macroeconomic stability.

He said that economic challenges brought about by the advent of Covid-19 pandemic and Russian-Ukrainian conflict had also made the idea of economic diversification imperative.

“There is no gain saying that since 2019, the world has been facing severe shocks, propelled by the Covid 19 pandemic and the Russian-Ukraine war that have continued to threaten global growth and overall macroeconomic stability.

” As the world was gradually exiting the devastating negative shocks and impact of Covid-19 pandemic, the economic sanctions against Russia have further worsened the subsisting supply-chain disruptions across the globe.

“The accompanying trade dislocations have aggravated supply shocks across regions, triggered unprecedented increases in commodities, energy and food prices as inflationary pressures persist to all-time high across regions,” he said.

Emefiele said that increasing price of crude oil in the international market had also created economic challenges for several countries across the world.

“Oil prices have been hovering above 100 dollars per barrel over the past few months and have become a major drag to many industrialised economies of the world.

“Moreso, the blockage of shipments along the Black Sea have caused significant pressures on food prices, thus, underscoring the need to diversify our economy.

“This will ensure that unanticipated negative shocks such as this does not undermine our food security and self-sufficiency.

“Therefore, the quest for building a more sophisticated economy anchored on agriculture, MSMEs, industrial and manufacturing concerns have become the major component of our monetary policy,” he said.

Emefiele said that CBN had taken major leaps to diversify the economy away from largely oil-based economy through numerous interventions.

“We have supported non-oil sectors such as agriculture, manufacturing, health care, education, power and aviation and other allied economic value chains.

“You may recall that our flagship Anchor Borrowers’ Programme that heralded recent rice revolution in Nigeria has changed the long-standing dependence on imported rice.

“The country is not only depending on domestic production, but we have now become a rice exporting country.

“The Commercial Agriculture Credit Scheme is a major special purpose vehicle to support commercial farmers in the country in different value chains including oil palm, cotton, cocoa, among others,” he said.

He said that the continued support to the manufacturing sector and MSMEs have been yielding great results as the implementation of 44 items not valid for FX for imports has revealed.

According to him, CBN’s intervention in the health sector has begun to reduce the healthcare tourism, which is helping to conserve our foreign exchange and improve our well-being.

“Furthermore, the new 100 for 100 Policy on Production and Productivity (PPP) targeted at harnessing our local raw materials to increase domestic production and exports will soon begin to yield quality results.

“Moreso, the RT200 FX initiative designed to take advantage of our large domestic production to other regional markets is targeted to increase foreign exchange inflows to the economy and support exchange rate stability.

” In addition, the on-going work at the Dangote Refinery, when fully completed, will stop fuel importation just as we witnessed in cement, sugar and fertiliser market,” he said.

The Director of Trade and Exchange Department of the CBN, Dr Ozoemena Nnaji, said there was urgent diversification would spur growth.

According to Nnaji, the status of Nigeria as a mono-product economy had been detrimental to economic growth.

She described a mono-product economy as one that depends on a single product or resource for economic growth and development.

She said that the concept could further be referred to a case where a country depended on a single product for sales or exports for for 70 per cent of its budget funding.

According to her, a mono-product economy is unstable.

“An increase or decrease in the world price of the product will affect the budget of the economy.

“It may witness a high percentage of unemployment; it is import-dependent and cannot stand on its own.

“It weakens the foreign exchange base of the country’s economy,” she said.

She said that such an economy weakend local production of goods that were imported into the country.

“In addition to importing finished goods, a country may also import inflation and other economic effects ” she said.

She said that oil and gas accounted for 90 per cent of Nigeria’s export income and 85 per cent of government revenue in the first quarter of 2022.

According to her, that makes Nigeria a mono-product economy, owing to its dependence on oil and gas.

She added that a more committed engagement in agriculture would grow the economy faster.

“Nigeria is a hugely agrarian economy which vast arable land, and with a large portion of the population into subsistence agriculture.

“Only less than 40 per cent of the vast arable land is cultivated, ” she said.

She said that the overbearing impact of the oil sector on the nation’s economy exposed the country to external shocks whenever there is change in price.

“To insulate the Nigerian economy from the shocks and FX shortages, there is need to develop new strategies aimed at earning more stable and sustainable inflows of FX through diversification of the non-oil export sector, ” she said.

She added that diversification would guarantee sectoral dependence and balance in the economy.

She said that the need for more sources of export products to reduce importation of goods and services that can be produced locally makes diversification imperative.

“Promotion of international trade that will lead to balance of payment position; the need for a dynamic economy capable of absorbing shocks while maintaining full employment, the need for a high rate of economic growth and development, ” she said.

An Economic expert, Prof. Ken Ife, urged the Federal Government to improve its commitment to the agricultural and manufacturing sectors of the economy to spur diversification.

Ife said in spite of huge intervention in the agricultural sector in recent times, output appeared to be inadequate.

“Public leadership of agricultural development programmes has resulted in the construction of 300 dams, huge strategic grain reserves, and other investments.

“The high number of dams, together with the rains and rivers give Nigeria four times surface water than South Africa,.

“But only a handful of the dams are used for power generation, irrigation for dry-season farming and aqua culture,” he said.

He commended the CBN for its various intervention in agriculture and other non-oil sectors.

“As at February, N948 billion in loans has been given to 4.4 million farmers cultivating 5.2 million hectares, creating 12.5 million direct jobs.

“Government could not have been able to deliver this order of “targeting” and private-private arrangement and depositors’ monies that need to be repaid, ” he said.

A Consultant, Dr Abiodun Adedipe, called for a deliberate alignment of policies across fiscal, monetary, commercial and industrial planks, to stem dependence on crude oil.

Adedipe advised the government to reform and rationalise governance as the structure was convoluted and costly.

He said there was also the need to focus on industrialisation by revisiting and updating the National Industrial Revolution plan.

He urged the government to commit to local production of essential goods and target infrastructure development.

As the debate lingers amongst Nigerians as to the best formant to accelerate economic diversification and grow the economy, Nigerians remain expectant for concrete economic diversification and revenue generation initiatives.

Debt-Management-Office-DMO

Exploring huge investment potentials of FGN Securities

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As most Nigerians continue to decry the increasing public debt stock of Federal Government, others look at the the lucrative investment opportunities in some of the debt instruments.

These debt instruments refer to the various Federal Government of Nigeria (FGN) Securities, which make up the local component of government debt .

In recent times, the Debt Management Office (DMO), the government department saddled with the responsibility of coordinating the management of the country’s debt, embarked on awareness drive, to educate retail investors about the benefits of investing in these debt instruments.

The awareness drive, which was inaugurated in Lagos in March, has also been taken to Enugu in the Southeast, Ibadan in the Southwest and Kano in the Northwest .

FGN Securities refer to the FGN Bond, FGN Savings Bond, FGN Green Bond, the Sovereign Sukuk, the Eurobond and Treasury Bills.

Patience Oniha, the Director-General of DMO, said the aim was to sell the various existing FGN securities to the Nigerian public.

Oniha said the various FGN Securities, apart from raising funds to finance government projects, also offered attractive investment opportunities for Nigerians.

According to her, the Federal Government, through the DMO, issues the securities and makes periodic interest payments to the investors, while the principal is paid at the end of each tenor.

“The Federal Government has various investment platforms like the FGN Bond, FGN Savings Bond, Treasury Bills, the Green Bond, the Soveriegn Sukuk and Eurobond.

“One function of these FGN Securities is to raise capital to finance deficits in the budget, and also to raise funds to execute critical infrastructural projects.

“They are backed by full faith and credit of the Federal Government of Nigeria, and are default risk-free,” she said.

She said that the FGN Securities also contributed to the development of the domestic capital market, adding that they served as benchmark for other private institutions to issue their own securities.

“They enhance the savings and investment opportunities of the populace, thereby promoting financial inclusion.

“They also attract foreign investors into the domestic financial market, to refinance maturing domestic debt and to diversify sources of funding for the Federal Government.

“You can use them as collateral to obtain loans from banks and other financial institutions, and they help in diversification of investment portfolio.

“They are also a source of steady income, as investors’ interests are paid every six months or every three months, and they are tradable on the stock exchange, ” she said.

According to her, FGN Bond is the flagship of the FGN Securities

“It is the longest of the existing FGN Securities. It offers medium term to long term investments , from five years to seven years, to 10 years, 20 years and 30 years.

“It is offered every month, with minimum subscription of N50 million, and in multiples of N1000 thereafter, and coupon payment are made every six months.

“The second product, the FGN Savings Bond is designed with retail investors in mind.

” It is issued every month, with a minimum subscription of N5,000 and in multiples of N1000, subject to a maximum of N50m ” Oniha said.

She said that the Eurobond was issued in dollars, and designed to provide exposure to foreign investment that stayed in the country.

“When you invest in Eurobond you are owning a dollar-denominated assets, and that adds foreign exchange exposure to your portfolio, while also boosting the nation’s external reserves,” she said.

She described the Sovereign Sukuk as a Sharia-compliant Security that represents interests of the owner in an asset or pull of assets.

“The Sukuk ensures that every financial activity is backed by real economic activity, and there are specific infrastructural projects linked to the Sukuk investment,” she said.

She said that the FGN Green Bond is a fixed-income security used to finance projects that have positive impact on the environment and to provide solution to climate change.

She added that Treasury Bills were short-term securities issued with tenors of 91 days, 182 days and 365 days.

“The minimum for this investment is N50m, ” she said.

Oniha said that the objective was to ensure that many more Nigerians became aware of the huge investment opportunities so they could take advantage of them.

“The purpose is to introduce DMO to the people. Some might have read one or two things about us in the newspapers, but the Nigerian people are a very important set of stakeholders we must engage.

“Also, we have to educate the general public about the various products that we offer. We are talking of investment products similar to shares, but this is the other side of shares.

Mr Monday Usiade, the Director, Market Development Department of the DMO, urged Nigerians to embrace investment in the various FGN Securities to enhance their earnings.

According to Usiade, it is more profitable for Nigerians to invest their monies in the FGN Securities.

“Saving is a culture we must all imbibe, and the FGN Securities have come to help Nigerians save.

“The driving force is to encourage us to save in a secure environment. The Federal Government cannot default on a loan in its own currency,’’ he said.

He said that the various FGN Securities were already competing with the Deposit Money Banks (DMBs), adding that there was the need to challenge the DMBs to improve on their service delivery.

He, however, described the banks and Stockbroking firms as “partners in progress” with the DMO.

“We can encourage Nigerians to invest in the various Federal Government Securities to diversify their investment portfolios and improve their earnings.

“We cannot undermine the integral role of the DMBs in the financial system and in delivering our mandate. We also need the banks to execute our mandate,” he said.

A stockbroker, Mr Abiodun Fagbohun, said the DMO designed the FGN Savings Bond to accommodate small-time, retail investors.

According to Fagbohun, in the past, institutions like banks and pension funds administrators were the ones who took advantage of FGN Securities.

He added that the DMO, along with the stockbroking community, was trying to ensure that the general public can participate in the bond market.

“We created this window through the FGN Savings Bond, whereby retail investors with as low as N5,000 can also participate in the market.

“For example, if you put about N10,000 in your savings account, you will earn like two per cent interest per annum.

“With the FGN savings bond, you can earn between nine per cent and 10 per cent interest per annum.

“It is a good opportunity which was not there for the retail investors before now,’’ he said.

Another stockbroker, Mr Kayode Olayemi, said that it had become increasingly imperative to create awareness about government securities among retail investors.

Olayemi said that ordinary Nigerians also deserved the opportunity to invest and benefit from the huge opportunities in the products.

He said that the FGN Securities served as a benchmark for other private institutions to be able to issue their own debt securities.

“Government securities also enhances the saving and investment opportunities of the populace, thereby, promoting financial inclusion, ” he said.

Mr Adeyinka Sonekan, Divisional Head, Sales and Business Development of a stockbroking firm urged Nigerians to take advantage of the investment opportunities to key into the financial system and also improve their finances

According to Mr Fortune Ibe of CSL Stockbrokers Limited, the investment in FGN Securities is an additional way for Nigerians to make money.

“The Federal Government is telling Nigerians that they can borrow their money for infrastructure and they will get interest rate on it.

“The interest rates on FGN securities is higher than what the banks will give you.

“With as little as N5,000, Nigerians can now invest in FGN Savings Bond . It is an avenue through which the government raises funds to develop infrastructure.

“It also contributes to the development of the financial market, attracts foreign investors into the financial market and enhances savings and investment opportunities of the populace,’’ he said.

As the expenditure needs of government continue to grow in the midst of scarce resources and imperative to borrow, stakeholders are encouraging Nigerians to lend to government by investing in its various security instruments, which constitute the local component of government borrowings.

They say such investment will also help to promote and encourage financial inclusion, while growing the local capital market.

FGN Securities can be sold for cash at the Nigeria Stock Exchange, and they are acceptable as collateral for loans by banks.

They are also good for savings towards retirement, marriages, payment of school fees and for housing projects.

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Dangote Refinery to rescue Nigerians from sleeping in fuel stations

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It has been herculean since April when many Nigerians and motorists virtually slept at fuel stations in a persisting scarcity in a country that is world’s sixth largest oil producer.

Motorists, especially commercial drivers, spend the larger parts of their days in long and unending queues in few filling stations where petrol is dispensed while some rich people patronise black markets that have taken over roadsides in major cities.

Motorists who patronise black marketers pay at least 150 percent more than the pump price of N165 ($0.35 cent) per litre but unsure of the quality of the liquid served them by these roadside sellers.

Some motorists have reported their vehicles developing faults after using the adulterated petrol bought from these black market operators who have taken over the business from petrol stations.

Queues are not new in Nigeria but there had been respite in the last six years until April 2022 when the scarcity of the product had defied solution even though the new National Nigeria Petroleum Corporation (NNPC) had insisted of the availability and advised Nigerians against panic buying.

Although the retailers have adjusted their pump price from N165 ($0.35)per litre to N175 ($0.39) per litre, the product remains elusive despite Nigeria’s claims of massive importation.

Both major and independent marketers are conscious and fear that Nigerian government was planning to remove subsidy which had become a recurring agenda in the face of dwindling income which the federal government is giving as excuse to discontinue subsidy payment.

The government and many stakeholders believe that the removal of subsidy is ripe because the mega Dangote Petroleum Refinery which construction started in 2015 is almost ready for production and to supply petroleum products to Nigeria and other African countries.

Nigeria which started exploring and exploiting crude oil since 1956, remains largely an importer of petroleum products even as it exports an average of two million barrels crude oil daily.

Its four petroleum refineries in Warri, Port Harcourt and Kaduna had be moribund for decades, making the Africa’s most populous country dependent on import which consumes the larger chunk of the foreign exchange earnings from crude export.

Nigeria and Nigerians and some African countries have eyes on Dangote Petroleum Refinery which cost of construction has hit $19 billion from the initial $9 billion since 2015 when its construction started.

Situated in Lekki Free Zone near Lagos, the commercial nerve centre of Nigeria, the refinery is expected to be Africa’s biggest oil and the world’s biggest single-train facility upon completion in 2022.

Aside the astronomical increase in cost due to additional facilities, the refinery has also witnessed an increase in staff strength by 17,000 bringing the total number to 57,000 in the first quarter of 2022.

The petroleum refinery complex being built by 64-year-old Aliko Dangote, Africa’s richest business man, has 650,000 barrel capacity and will process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.

It will produce of 50 million litres of petrol daily; and yearly production of 10.4 million tonnes of gasoline, 4.6 million tonnes of diesel, and 4 million tons of jet fuel a year.

It will also produce 0.69 million tonnes of polypropylene, 0.24 million tonnes of propane, 32,000 tonnes of Sulphur, and 0.5 million tonnes of carbon black feed.

The President of Dangote Group, Mr Aliko Dangote, on May 29, 2022, assured that production would start before the end of 2022 and that the facility would help Nigeria to tackle the lingering issue of petroleum products’ importation and scarcity as well as expose Nigeria’s midstream and downstream sectors to the international markets.

Dangote who spoke at the 2022 Nigerian Content Midstream and Downstream Oil and Gas Summit in Lagos, described the refinery as an investment that would transform the economies of countries in sub-Saharan Africa.

“It makes me feel terrible to see a country as big and resourceful as Nigeria with high population, importing all its petroleum products, so, we decided it is time to tackle this challenge.

“It is not government’s responsibility alone to address the challenge of petroleum products’ importation in Nigeria. No, we have to collaborate with the government to tackle the issue of petroleum importation.’’

Dangote emphasised the need for the country to shift attention from crude oil export and diversify the economy.

“We should not as a country,  be comfortable with generating revenue from crude oil export alone, because tomorrow, people may not need crude oil.

“If we do not move from crude oil to something else, we will have issues as a country. This is one of the things that I took upon myself to help address,” he said.

The refinery will be able to supply all the gasoline, diesel and aviation fuel used in the West African country and a third of its output will still be available for export, Dangote said.

Also, Mr Devakumar Edwin, the Group Executive Director of Dangote Industires, confirmed the $19 billion cost of the firm when completed and that the petrochemical project houses the world’s biggest ammonia plant, which had started producing fertiliser.

He said the state-owned Nigeria National Petroleum Company (NNPC), a facilitator of exploration and exploitation of oil and gas, has acquired 20 percent stake in the refinery that is worth $2.7 billion.

The Managing Director of NNPC, Mr Mele Kyari, in July 2022 confirmed that the corporation had paid an initial amount of $1 billion for the ordinary shares it acquired in the refinery

Kyari said the investment in the refinery will guarantee energy security for Nigeria.

With Dangote Refinery in place, coupled with planned completion of the rehabilitation of the moribund Port Harcourt, Warri and Kaduna refineries by the end of 2023, Nigeria would become a hub of petroleum products in Africa.

He explained that the rehabilitation of the state-owned refineries in Kaduna, Warri and Port Harcourt was ongoing, saying: “We have been trying to fix our refineries. We have awarded the contracts.’’

 “We as a national oil company, has the responsibility to ensure energy security for this country and the meaning of this is that you must secure the supply sources.

“That means with the NNPC’s refineries in place and Dangote Refineries operating along with other initiatives that we are making, we are going to have a massive hub of petroleum production in West Africa.

“This will change the flow of product supply in the whole globe and scarcity will be history in Nigeria,” he assured.

Restive Nigerians are eager to seen the fruition of these projects that have been designed to halt the suffering of the nation, especially motorists, households and the aviation sector as well as the available foreign exchange.

Aviation minister Hadi Sirika on August 2, 2022 assured Nigerians that the Dangote refinery and other state owned refineries under rehabilitation will help end the scarcity of petrol and aviation fuel.

“By the grace of God, perhaps once the Dangote refinery is on line or if the government fixes its refinery — which is now ongoing — we will begin to refine this product and sell it.”

Minister of State for Petroleum, Mr Timipre Sylva, also confirmed the Turnaround Maintenance (TAM) of the state refineries to ensure local refining of petroleum products, in addition to the acquisition of stakes in the Dangote refinery.

A statement by Mr Horatius Egua, Senior Adviser, Media & Communications, to the Minister on August 3, 2022, said: “Nigerians have grappled with fuel scarcity for long. Let me once again appeal to Nigerians to be patient with government in finding lasting solutions to the crisis.

“Let us as Nigerians stand shoulder to shoulder in our shared quest for a greater country.”

A human rights activist, Mr Adeleye Osunde, sees the new order in the petroleum industry as a relief but warned that the local production should not translate to additional burden to consumers.

“The locally produced petroleum products should be within the reach of every Nigerians. The sale of crude to these refineries should not be denominated in dollars, because the crude oil is taken from Nigerian soil and Nigerians should reap the benefits,’’ he said.

Mr Yusuf Ahmed, a commercial motorist, doubts if the scarcity of petrol will be over even with the coming to stream of Dangote refinery and other refineries.

“I fear that Nigeria will come up with other excuses to deny is citizens of the comfort of their God given natural resources.’’

Aside the problem of importation and shortage of foreign exchange needed to pay for the order, he said that the activities of unions and operators in the petroleum chain should be checked.

Many of the unions, especially transporters of petroleum products, are a big pain in the process, explaining: “They go on strike at will and I hope that now that petrol sector has been deregulated and in private hands, these extraneous factors will be checked.’’

The petroleum distribution chain should be simplified and short, Mr Aliyu Ahmed, a logistic officer of the National Association of Petroleum Product Marketers, advised.

“If this is not streamlined and made short, I fear that the supply bottlenecks and scarcity will persist,’’ he warned.

However, Information and Culture minister Lai Mohammed on August 4, 2022 described the refinery as a game changer in Nigeria’s energy challenge once it comes on stream.

The minister who led a team of journalists on inspection tour of the refinery said the facility will engender huge value addition that would contribute to the increase in Gross Domestic Product (GDP)

“It will conserve foreign exchange by putting an end to importation of petroleum products and huge sum paid for subsidy and in addition, create employment and generate foreign exchange through export of finished products.’’

CBN-FOREX

CBN’s RT200 intervention to boost FX earnings

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In recent times, the paucity of foreign exchange in the Nigerian economy has been of concern to many Nigerians.

Some of believe that the sole dependence on crude oil sale, with its constant volatility, is responsible for the shortage of forex in the Nigerian financial system, resulting to constant depreciation of the Naira.

The Central Bank of Nigeria (CBN), in February, introduced a new intervention programme, “Race to N200 billion dollars in Foreign Exchange Repatriation”. (RT200).

R200 is an effort to reduce exposure to volatile sources of foreign exchange and to earn more stable and sustainable inflows.

The CBN Governor, Mr Godwin Emefiele, while. Introducing RT200 said the programme was designed to help improve non-oil export receipts and boost the country’s foreign exchange earnings.

Emefiele said that RT200 was a set of policies, plans and programmes for non-oil exports, designed to help the country attain a goal of 200 billion dollars exclusively from non-oil exports over the next three to five years.

The apex bank governor said that the programme was initiated after careful consideration of available options and wide consultations with the banking community.

He added that the RT200 programme would have five key anchors.

“They are Value-Adding Experts Facility; Non-Oil Commodities Expansion Facility; Non-Oil FX Rebate Scheme; Dedicated Non-Oil Export Terminal and Biannual Non-Oil Export Summit,” he said.

Emefiele said that RT200 would provide concessionary and long-term funding for business people who were interested in either expanding existing plants or building new ones.

According to him, it is for the sole purpose of adding significant value to the non-oil commodities before exporting same.

“This is because the export of primary unprocessed commodities does not yield much in foreign exchange.

“For example, Nigeria reportedly produces about 770,000 metric tonnes of Sesame, Cashew, and Cocoa. Of this number, about 12,000 metric tonnes are consumed locally and 758,000 metric tonnes are exported.

“Out of the 758,000 metric tonnes that the country exports annually, only 16.8 per cent is processed.

“The rest are exported as raw, thereby giving Nigerian farmers a tiny part of the value chain in these products,” he said.

Emefiele added that the global chocolate industry is valued at about 130 billion dollars.

“Of this amount, Cote D’Ivoire, Ghana, and Nigeria account for more than 72 per cent of global cocoa exports.

“Due to the fact that these countries mainly export raw cocoa beans, Cote D’Ivoire is reported to have received 3.6 billion dollars annually, Ghana generates 1.9 billion dollars annually.

“Nigeria gets about 804 million dollars per year from an industry that is worth over 130 billion dollars.

“In contrast, Belgium accounted for 11 per cent of global chocolate exports in 2019, at a value of 3.16 billion dollars. In the same vein, Germany’s chocolate exports were worth 5.14 billion dollars in the same year, ” he said. .

The CBN believes that the RT200 is a first step to getting back some of the foreign exchange that the country rightly deserves.

Emefiele explained that the RT200 was not intended to provide solution to all of Nigeria’s export problems, adding that it was a first step to solving the challenges.

“It is a first step meant to ensure that the CBN is better able to carry out its mandate in an effective and efficient manner, which guarantees preservation of scarce common wealth and the stability of the Naira.

“It is only by boosting productive and earning capacity of this economy that we can truly preserve the long-term value of our currency as well as the stability of our exchange rate,” he said

The apex bank subsequently released guidelines for the operationalisation of the R200 intervention, stating that a major anchor of the programme was the Non-Oil Export proceeds repatriation Rebate Scheme.

It said that the rebate scheme was designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the FX Market.

There is also the Non-Oil Commodities Expansion Facility, a concessionary facility designed to significantly boost local production of exportable commodities.

It is akin to the Naira4Dollar Scheme, which the CBN said has helped boost diaspora remittances from six million dollars per week to over 100 million dollars per week.

The CBN promised to pay N65 for every one dollar repatriated and sold for third party use, and N35 for every one dollar repatriated and sold into Investors and Exporters (I & E) window for own use on eligible transactions only.

The apex bank plans to graduate the percentage of the rebate depending on the level of value addition to the product being exported.

It is tailored to ensure that expanded and new factories that are financed by the value-adding facility are not starved of inputs of raw commodities in their production cycle.

A massive boost in the production of such commodities would also help moderate the prices of these commodities so that the expected increase in demand for them does not put much pressure on aggregate prices in the market.

In order to maximise the potential and impact of this facility, the CBN planned to replicate what other successful export-based economies have done by first prioritising and targeting certain commodities.

According to Emefiele, we would create a geographic prioritisation of crops across the country to achieve production efficiency through the development of special areas that will cater to specific commodities.

“Since sustainable foreign exchange earnings are dependent on national competitive advantage, a prioritisation framework based on crops which Nigeria is best suited to produce will be essential”, he said.

Ozoemena Nnaji, Director of Trade and Exchange Department of the CBN said that only exporters of finished and semi-finished goods were eligible for the incentive.

“It is borne out of the need to develop new strategies aimed at earning more stable and sustainable inflows of FX, in order to insulate the Nigerian economy from shocks and FX shortages.

“Exporters shall qualify for the rebates only where repatriated export proceeds are sold at the I&E window.

“Eligible transactions that qualify for incentives under the scheme shall be export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria,” she said

Findings reveal that the RT200 appears to be yielding some dividends.

The apex bank said that it raked in about 600 million dollars as at June, through the programme.

Director, Corporate Communications, Mr Osita Nwanisobi who made the disclosure recently, said that the CBN remained committed to resolving the foreign exchange issues confronting the nation.

He added that the apex bank had been working to manage both the demand and supply side challenges.

“The CBN’s records show that foreign exchange inflow through the RT200 FX Programme in the first and second quarters of 2022 increased significantly to about 600 million dollars as of June,” he said.

He added that initiatives like the RT200 and the Naira4Dollar rebate scheme had helped to increase foreign exchange inflow to the country.

During a conference on RT200 in Lagos, Mr Babajide Sanwo-Olu, the Governor of Lagos State, commended the CBN for taking steps to promote non-oil exports in Nigeria.

He used the opportunity to inform stakeholders that the Lekki Ports would be open to all Nigerians before the end of the year.

According to Mrs. Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank, exporters have gotten approval of more than three billion Naira incentive from the CBN.

“In fulfilment of its promise of a rebate, the CBN governor approved the immediate release of N3.5 billion export incentives to a total of 150 exporters in Nigeria’s non-oil sector, under RT200 foreign exchange policy,” she said.

Experts believe that introduction of the RT200 programme is one of the most far-reaching policies by the CBN to rejuvenate the country’s economy.

They said that the programme would place the economy on a sustainable pedestal to cope with the present inadequacy of FX supply and constant pressure on the exchange rate.

There are four major sources of FX inflow into the Nigerian economy.

They are, proceeds from oil exports, non-oil exports, diaspora remittances, and f00oreign direct investments.

Most of them have proven to be unreliable sources that are perennially prone to external global economic developments.

To avoid these sudden adjustments to economic life, the need to focus on strategies that can help the country earn more stable and sustainable inflows of foreign exchange necessitated the introduction of RT200.

The Director General of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadir, commended the CBN for the initiative.

Ajayi-Kadir suggested that the rebate offered under the programe should be expanded to cover the FX rate gap between the official and parallel markets.

He said that the RT200 was a laudable initiative which would go a long way to boost non-oil exports in the country, considering the ineffectiveNess of the Export Expansion Grant.

“Without a doubt, the RT200 programme is a good initiative as it was designed to stimulate the growth of non-oil export in Nigeria.

“This comes against the backdrop of the lacklustre implementation of the Export Expansion Grant.

“But we should also talk about the issue of adequacy of the RT200 as an export incentive.

“The ambition is to hit 200 billion dollars in foreign exchange earnings over the next 3-5 years from non-oil proceeds.

“So, it is important to create a conducive and stimulating environment in order to achieve the target,” he said. .

He added that the N65 or N35 to one dollar rebate offered by CBN could not cover the FX rate gap between the official and parallel markets.

“The payment of N23.6billion as rebate in the first and second quarters of 2022 presupposed a commendable level of repatriated export proceeds sold on the I&E window.

“On this score, we may also assume that the programme is encouraging FX inflow and sale.

“We should however be interested in the content of the export that earned the repatriated proceeds. Are they commodities with value addition? Are they processed or manufactured goods?

“This will enable us to answer the very important question of whether we have been able to achieve expanded job and wealth creation within the value chain of the exported products,” he said. .

He suggested an upward review of the rebate to above N100, so that it can have a direct and effective bearing on the business of the beneficiary.

“This will stimulate further investment in export oriented production and in a way, ameliorate the high cost of forex,” he said.

According to the Divisional Head, Agribusiness, Natural Resources and Project Development, Heritage Bank, Olugbenga Awe, the Nigerian economy had been well diversified, going by statistics except the sources of forex.

Awe said that the Nigerian non-oil products could boost forex earnings if they meet global standards.

” Any product whose electronic receipt is traded on a commodities exchange must be of global standard,” he said.