esme1, Author at Enugu SME Centre

246,000 Youths to Benefit from FG’s N75bn Youth Fund

There are indications that only about 246,000 Nigerian youths may eventually benefit from the Federal Government’s Nigeria Youth Investment Fund, NYIF, at end of the disbursement programe this year.

The NYIF was part of the COVID-19 stimulus package of the Federal Government last year aimed at getting the economy rescued from the set-backs of the pandemic by engaging the young people in productive ventures.

So far only 41,000 out of over three million applicants has been covered and about N12.5 billion has been disbursed. The government intends to disburse N75 billion under the scheme before end of this year.

The beneficiaries received about N300,000 each but some of them were angry that the amount was far bellow their expectations and the purpose for which they needed the fund.

One of the beneficiaries told our correspondent that he was surprised that he got only N300,000 when he actually applied for N3.0 million, which he said was the cost of his poultry business expansion as contained in the business plan he submitted.

He lamented that the development would force him to continue looking for more funding which may delay his expansion while jeopardizing his loan repayment plans.

He also confirmed that a lot of his friends that applied did not succeed while a few that succeeded also got N300,000.

But the Ministry of Youth and Sports Development appears to be disappointed at some of the beneficiaries who condemned the amount they received as the scheme actually pegged maximum amount for individual beneficiaries at N250,000, meaning that over 20 percent enhancement was actually made.

In a statement earlier in the week the Ministry said the disbursement of the Fund is being done in phases.

A statement signed by the Director of Press explained that the ministry had received over three million applications for the initial N12.5billion made available.

It said at the current cap of N300,000 per beneficiary, only about 41,000 beneficiaries could be covered.

According to the ministry, it had limited the loans to the current amount so as to reach as many beneficiaries as possible.

The statement read in part, “The Ministry of Youth and Sports Development has been following with interest the reaction of some beneficiaries of the NYIF, particularly those expressing disappointment at the N300,000 cap on disbursement under the first tranche of N12.5billion.

“Firstly, the framework specified N250,000 as the maximum for individual and eligible businesses that are critical can access up toN3m subject to meeting key criteria set in the guideline and conditions.

CBN resumes $100m weekly sales for SMEs, school fees

CBN resumes $100m weekly sales for SMEs, school fees… concludes plans to resume sales to BDCs

The Central Bank of Nigeria (CBN) on Wednesday said it had resumed $100 million weekly sales for school fees and Small and Medium Enterprises (SMEs).

The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume.

The regulator on March 26, suspended foreign exchange sales to the Bureau De Change (BDC) operators until further notice due to the Covid-19 lockdown as requested by the operators. The suspension notwithstanding, some BDCs are still active in the market.

This is in view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria.

A statement signed by Isaac Okorafor, director, corporate communications department, reads “Central Bank of Nigeria (CBN) has resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay schools fees and SMEs wishing to make essential imports needed to revamp economic activities across the country. In particular, the CBN is resuming the provision of over US$100 million per week for both categories”.

With these actions, the CBN reiterated that it is adequately meeting the needs of all legitimate users, and its continued capacity to do so should not be in doubt.

There is therefore no need for panic by any end-user that could necessitate recourse to illegitimate sources and spike in foreign exchange rates, the CBN said.

Given this, the Bank has ramped up its surveillance of the foreign exchange markets for speculators, smugglers and other illegal users, and will take decisive actions against anyone/institutions involved in such nefarious activities.

Reacting to CBN’ action, Aminu Gwadabe, president of Association of Bureau De Change Operators of Nigeria (ABCON) said, “Yes, it is in line as our product is cash not digital currency and our clients are travellers. In line with our scope, we engage mostly personal travelling allowance and Buisiness travelling allowance which in all scenarios demand ticket visas of our customers”.

The Naira weakened further by N5.00k as one dollar traded at N460 at the close of business on Wednesday compared with N455 traded in the morning at the black market.

The local currency lost N0.20k at the close of business as the dollar traded at N386.45k on Wednesday as against N386.25k on Tuesday at the Investors and Exporters (I&E) forex window, data from FMDQ indicated.

Naira depreciated by N2 at the retail bureaus as the dollar was trading at N467 on Wednesday from N465 quoted on Tuesday.

Gwadabe said the assurances of the apex bank and the partial return of operations in the foreign exchange market will ensure sanity and discourage frivolous demand and panic buying which pervades the market in recent times.

He said the BDCs will return as soon as lockdown in the international airport are relaxed.

SMEDAN To Protect Intellectual Property For MSMEs

The Director General/ Chief Executive Officer of Small and Medium Enterprises Development Agency Nigeria SMEDAN, Dr Dikko Radda has said that the agency would protect intellectual property for the Micro, Small and Medium Enterprises sector of the economy.

He stressed on the need for SMEs to be sensitised on the importance of Intellectual Property to enhancing the value of their enterprises.

Radda, who made call during a world press conference to commemorate the 2021 World Intellectual Property Day , a brainchild of the World Intellectual Property Organisation in Abuja, lamented that most Small and Medium Enterprises, across the country are not aware of the importance in enhancing the value of their products, services and processes.

He also urged relevant agency with the statutory function in the administration of IP to be easily accessible by moving closer to the SMEs.

He gave examples of intellectual property that would be protected to include music, literature, and other artistic works; discoveries and inventions; and words, phrases, symbols, and designs among others.

He further explained that under the intellectual property laws, owners of intellectual property are granted certain exclusive rights.

He described intellectual property as a key consideration in day to day business decisions as new products, brands, creative designs appear almost daily on the market and are result of continuous human innovation and creativity.

Radda said, “SMEs are often the driving force behind innovations. However, their innovation and creative capacity is not fully exploited as many SMEs are not fully aware of the intellectual property system.”

He identified one of the challenges facing MSMEs to include lack of awareness as most of them ar not aware of the importance of intellectual property in enhancing th value of their products, services and processes.

The SMEDAN Boss also said costs associated with IP protection may deter SMEs in taking the initiative protecting their intellectual property

In his remarks, the Ag. Head, World Intellectual Property Organisation Nigeria office , Mr Oluwatobiloba Moody said at a time when the imperative of economic recovery in Nigeria is high, particularly in the light of global pandemic, the WIPD 2021 provides an important moment to shine a light on the critical role of SMEs in Nigeria.

Moody said SMEs are the backbone of Nigeria’s economy, adding that they deliver the goods and services Nigerians need everyday.

DG SMEDAN also said MSME hatch breakthrough innovations and inspiring creations that have job creation potentials.

He said globally, SMEs make up about 90 per cent of the world’s businesses, employ around 50 percent of the global workforce and generate up to 40 percent of national income in many emerging economies.

SOURCE

Access Bank Acquires 78.15% Stake In Atlas Mara Subsidiary

Access Bank Plc’ has announced a fresh purchase of a majority shareholding right in a subsidiary of Atlas Mara, in its quest to emerge as the biggest financial institution on the continent

The lender’s acquisition of 78.15 percent shareholding in African Banking Corporation of Botswana Limited (BancABC Botswana, a subsidiary of Atlas Mara Limited, ABC Holdings Limited is coming barely three weeks after it got approval to buy South African bank, Gro bank Limited.

According to a statement by Access Bank on Monday, it has entered into a definite and binding agreement with
Atlas Mara Limited, ABC Holdings Limited for a 78.15 percent stake in BancABC Botswana.

The final ratification is subject to regulatory approvals and customary conditions precedent, adding that the transaction should be completed before the end of the second quarter of 2021.

Atlas Mara is the parent company of Union Bank of Nigeria Plc and is listed on the London Stock Exchange (LSE).

Managing Director, Access Bank Herbert Wigwe said, “We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong, sustainable returns for our shareholders and stakeholders at large over the medium and long term, ”.

FG Admits Revenues Crashing, Says Nigeria Faces Hard Times

The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday admitted that Nigeria’s economy was facing a difficult time, saying states must improve their internally generated revenues.

Ahmed, who stated this in an interview on a daily breakfast show on the Nigerian Television Authority, Good Morning Nigeria, stated that the money shared at the March Federation Account Allocation Committee meeting was short of N50bn.

The minister was speaking on a controversy generated by a claim by the Edo State Governor, Godwin Obaseki, that the Central Bank of Nigeria printed N60bn in March to augment the money shared at March FAAC.

But the minister and the CBN Governor last week dismissed Obaseki’s claim.

In the interview on the NTA on Monday, the finance minister stated the country’s economy was stabilising from the recession, which the country exited a few months ago.

She, however, added, “These are very difficult challenging times because revenues are low and the demand for expenditures are very high understandably because we have to keep intervening to make sure the pandemic is contained as well as the economic impact it has caused.

“In our case in Nigeria, the crash of the crude oil prices really hit us very hard in terms of revenue. We have very low revenues, we have very high expenditures. What we have done so far is just to provide some stability to make sure salaries are paid, pensions are received every month; that we send funds to the judiciary and the legislature; that we meet our debt service obligations.

“That’s what we are doing. It also means we have had to borrow more than we have planned before the COVID-19 started because we need to still continue to invest in infrastructure using our national budget. We borrowed to invest in key projects such as roads, rail, airports, seaports and several other investments that are required in health and in education and upgrading the social standards and quality of life of our people and Nigeria is not unique as several countries of the world went into recession.

“Almost every other country has had to borrow more than it planned. It means we expanded our economy deficit very fast in 2020. 2021 is a year that we see as the year of recovery.”

According to him, government hopes to achieve a growth of three percent in 2021, adding that some of the multilateral institutions are putting it at 2.5 percent.

She stated, “It is a very difficult time. I can explain to you how difficult it is, not just for the Federal Government but also for the states. We see increasing reductions in our FAAC revenues; FAAC revenues are the revenues that we put together every month, that are collected from both oil and non-oil sectors from the collection of the NNPC (Nigerian National Petroleum Corporation) the FIRS (the Federal Inland Revenue Service) and all other revenues collection agencies.

“ So, FAAC reduces and whenever FAAC reduces, it is a very difficult situation and in the past one year, we have tried to fall back on some specific accounts that are meant to be saved; savings that when you have such a situation, you fall back on the resources and augment.

“So, we take funds based on Mr President’s approval either from Excess Crude or Stabilisation Account or in some cases, President approved for us to take funds from LNG (Liquefied Natural Gas) dividends. In the month of March, we had a shortfall of FAAC that was about N50bn; we didn’t have enough accrued in any of those accounts other than some N8.5bn that we took from exchange rate differential account so we added that and we ended up with the FAAC of N605bn.

“An average FAAC that is healthy for us is N650bn, so it means we had a shortfall of about N50bn. The states to be honest wanted us to go and borrow from the central bank to augment FAAC.”

She stated that advice by states was rejected, adding that the three levels of government were asked to manage what was available.

“So, it was very surprising when we had a sitting governor saying that the CBN had printed money for FAAC. That was very unfortunate because it was not true. The FAAC information is published so you can see the revenue contributed by each of the agency; that is what we shared.

Mastercard To Buy Digital ID Firm Ekata For $850m

Mastercard Inc said on Monday it had agreed to buy digital identity verification company Ekata in a deal valued at $850 million, as the global payments processor bets on a boom in demand for companies in the digital security space.

Ekata works with merchants, financial institutions, travel companies, marketplaces and digital currency platforms, helping them to identify bad actors in real-time during online account opening, payments and other digital interactions.

Mastercard says the addition of Ekata’s technology and engineering teams will help bolster the support it can provide as a one-stop partner for any consumer, bank, merchant, fintech or government’s data, payment and open banking needs.

Ekata’s products allow businesses to separate fraudsters from legitimate customers during digital interactions like opening an online account or making digital payments. It operates in three industries: e-commerce, payments and financial services, according to its website.

Its products, which include Ekata Identity Graph and Ekata Identity Network, allow companies to combat online fraud, it said.

The payments giant also stresses the combined capabilities across digital-first, instalment and crypto payment services, with the potential to expand further to real-time payments and cross-border activities.

Ajay Bhalla, president, cyber and intelligence solutions, Mastercard, says: “With the addition of Ekata, we will advance our identity capabilities and create a safer, seamless way for consumers to prove who they say they are in the new digital economy.”

The payments processor said the deal is expected to close in the next six months, adding that it does not expect the deal to be a drag on its business for more than two years.

“The acceleration of online transactions has thrust global digital identity verification to the forefront as one of the biggest opportunities to build digital trust and combat global fraud,” said Rob Eleveld, chief executive officer of Ekata, in a statement.

SOURCE

Refineries Record Deficit as NNPC Lifts $407.15m…

Refineries Record N5.4bn Deficit, As NNPC Lifts $407.15m Crude

Amidst controversy over the state of the nation’s refineries the latest report of the Nigerian National Petroleum Corporation, NNPC, has indicated that Nigeria’s three refineries guzzled a total of N5.86 billion in overhead expenses on zero output in the month December 2020 alone.

This expenditure eventually resulted in operating deficit of N5.37 billion by the refineries, the report stated. The three refineries are those of Kaduna, Warri and Port Harcourt.

The Federal Government has awarded contract for rehabilitation of Port Harcourt refinery at a cost of USD1.5 billion, a figure considered by most industry experts as outrageously high while condemning the high cost of maintaining the offices in the refineries with zero output over the years.

According to the NNPC report “in December 2020, NNPC lifted 7,538,735 barrels of crude oil from the daily allocation for domestic utilization translating to an average volume of 243,185 barrels of oil per day.”

The report further stated that in order to meet domestic product supply requirement for the month of December 2020, the entire 7,538,735 barrels were processed under the Direct Sales-Direct Purchase, DSDP, scheme while no deliveries to the domestic refineries for processing, meaning no crude was processed by the country’s three refineries.

Meanwhile, the report said the total value of crude oil lifted on the account of Nigerian National Petroleum Corporation, NNPC, in December 2020 was $407.15 million latest report by the Corporation has shown.

NNPC in its Monthly Financial and Operations Report for January, 2021 said of the 12.16 million barrels lifted on its account in December 2020, 7.54 million barrels and 0.50 million barrels were for domestic and export markets respectively.

The report explained that at an average oil price of $50.78/barrel and exchange rate of N379/$, the domestic crude oil lifted by NNPC “is valued at $382.8 million or a Naira equivalent of N145.1 billion for the month of December 2020.

The remaining crude oil lifted for export was valued at $24.3 million at an average price of $48.92/barrel. The report added that from December 2019 to December 2020, a total volume of 708 million barrels of crude oil and condensate was lifted by all parties.

SOURCE

Eight States To Benefit From FG’s Agro-Processing Zones Programme

The Federal Government has announced plans to launch a special agro-industrial processing zones (SAPZ) programme in 7 states of the federation, including the FCT.

Laolu Akande, spokesman of Vice-President Yemi Osinbajo, made this known in a statement in Abuja.

He said the project is in partnership with the African Development Bank (AfDB) and other stakeholders in the agric sector, including the International Fund for Agricultural Development (IFAD) and the Bank of Industry (BOI).

The programme is aimed at concentrating agro-processing activities in demarcated areas to boost productivity and integrate production, processing and marketing of selected commodities.

Akande said Osinbajo was briefed on the progress of the project in a meeting attended by Mohammed Nanono, Minister of Agriculture and Rural Development, and Niyi Adebayo, his counterpart in the Industry, Trade and Investment Ministry.

Under the programme, the federal government will demarcate areas across the 36 states and the Federal Capital Territory (FCT) to establish about 140 agro-processing centres.

He said the centres will be provided with basic infrastructure such as water, electricity and roads as well as facilities for skills training, while small-holder farmers in the catchment areas will be linked to markets across the value chain.

Akande said seven states — Ogun, Oyo, Imo, Cross River, Kano, Kaduna, Kwara — and the FCT have been selected for the first phase of the project.

Speaking on the progress recorded so far, Toda Atsuko, AfDB’s acting Vice-President, Agriculture, Human and Social Development, said the bank in collaboration with other stakeholders is ready to start the first phase of the SAPZ programme, having completed a joint appraisal mission across the 36 states.

Atsuko commended the administration of Presidential Muhammadu Buhari for its efforts, adding that the plan will create jobs, and leverage technology with significant youth participation.

“I am very pleased to see that work has advanced and quite a bit is already being done. There is a need to synergize really concretely with Green Imperative (which is the partnership with the Brazilians), I think there are areas where these two programmes can complement each other,” he said.

SON Plans Pact To Train SME’s On Standard Products

SON Plans Pact With Kwara Govt, To Train SME’s On Standard Products

In a quest to promote Small Scale Industries and businesses, the Standard Organization of Nigeria, SON, is set to sign a memorandum of understanding with the Kwara State government to educate small scale industries on standard products.

The Governor of Kwara State Governor, Mallam Abdulrahman Abdulrazaq said manufacturing is an important means of reducing unemployment in Nigeria, and his State is set to partner SON in this regard.

Receiving the Director-General of Standard Organization of Nigeria, Farouk Salim, the Governor said manufacturers should receive more support to make international standard products, thereby boosting exports and creating jobs.

Stressing further, the governor said the present administration would encourage small and medium scale businesses in the state and partner SON to uphold standards.

DG, SON, Salim, said he was in the state to launch the organisation’s new multi-million naira office complex and inspect some manufacturing companies in the state.

The DG however appealed to the state government to provide supportive infrastructure manufacturers and other businesses in the state.

FIRS: States Mull Digital Tax Technology As Revenue Shortfalls Hit 40%

Heads of Inland Revenue Service (FIRS) of the 36 states of the federation on Monday gathered in the Federal Capital Territory (FCT), Abuja, to consider ways of adapting new technology and Innovations available to improve revenue collection in their various states.

The new development is prompted by the findings by the Nigerian Governors’ Forum (NGF) that tax collected from contact-intensive taxes fell by an average of 40 per cent across all states in Nigeria during the period of the lockdown.

The Secretariat of the Forum organized a programme tagged: NGF’s Technology and Tax event to help facilitate the scale up of modern, taxpayer-friendly, and technology-driven revenue administrations in all States of the federation that will be capable of providing world-class services; characterized by efficient, paperless operations, and equipped with ICT-enabled risk-based enforcement capable of optimising their revenue mobilization strategies.

Director General of the Nigerian Governors’ Forum Secretariat, Asishana Bayo Okauru hinted that the figure was the outcome of research conducted by the Secretariat last year.

He said the result was a big lesson which exposed the criticality of internet-based business support systems and payment platforms for the automation of all back-end operational processes and payments across all revenue streams.

Okauru also noted that the lessons learnt from the research showed that most contact-intensive taxes are at risk, adding that all revenue administrations need to move to a digital future.

“Lessons of the COVID-19 pandemic have pointed to one direction – that all revenue administrations need to move to a digital future.

“Specifically for tax authorities, one big lesson that we have learnt is the criticality of internet-based business support systems and payment platforms for the automation of all back-end operational processes and payments across all revenue streams.

“From our research last year, we already know that most contact-intensive taxes are at risk, given the lessons we learnt during the period of the lockdown where taxes collected from contact-intensive taxes fell by an average of 40 per cent across all States in Nigeria.

“Coupled with a weak environment for tax policy and tax legitimacy, low technological integration in tax administration has undermined efforts to mobilise domestic revenues in the country.

“This has undermined the capacity of tax authorities to collect taxes efficiently and the ability of taxpayers to meet their tax responsibilities conveniently” he said.

Also speaking, Mohammad Nami, the Chairman, Federal Inland Revenue Service (FIRS), stressed the need to look inwards on how to improve the revenue of the states to augment the shortfall of allocations from the Federation Account, insisted that taxation all over the world has always been the most reliable and sustainable source of government revenue if well harnessed and effectively administered.

Nami regretted that the reliance on oil revenue in the previous years has exposed the country to huge revenue challenges and resulted in poor budget implementation across the three tiers of government.

Enugu SME Centre

All posts by : esme1

246,000 Youths to Benefit from FG’s N75bn Youth Fund

CBN resumes $100m weekly sales for SMEs, school fees

SMEDAN To Protect Intellectual Property For MSMEs

Access Bank Acquires 78.15% Stake In Atlas Mara Subsidiary

FG Admits Revenues Crashing, Says Nigeria Faces Hard Times

Mastercard To Buy Digital ID Firm Ekata For $850m

Refineries Record Deficit as NNPC Lifts $407.15m…

Eight States To Benefit From FG’s Agro-Processing Zones Programme

SON Plans Pact To Train SME’s On Standard Products

FIRS: States Mull Digital Tax Technology As Revenue Shortfalls Hit 40%

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