Business News
50,000 Farmers Get N70bn Loan From DBN
By Mathew Dadiya, Abuja
The Development Bank of Nigeria (DBN) Monday disclosed that it has given out N70 billion as loans to over 50,000 Micro, Small and Medium Enterprises (MSMEs) within three years.
Chairman of the bank, Dr. Shehu Yahaya said this at the maiden seminar series of the bank with the theme: Surviving To Thriving: “MSMEs as the key to unlocking inclusive growth in Africa”, held in Abuja.
Yahaya said that bank will continue to work in line with its mandate which is to alleviate financing constraints being faced by the Micro, Small and Medium Enterprises (MSMEs) in Nigeria.
He said that it was important that the government sought ways to boost job creation through formal enterprises.
He also observed that poverty and inequality had deepened in the country due to population and economic growth which led to rise in unemployment rate.
Yahaya said that DBN has changed the narrative by providing finance and partial credit guarantees to eligible financial intermediaries based on market conformity as well as full financially sustainability.
In his address, the Managing Director of DBN, Mr. Tony Okpanachi, said as bedrock of economic growth and development, MSMEs could play a critical role in accelerating economic transformation and industrialization.
According to Okpanachi, the lecture series was one of the ways to further strengthen the economy by ensuring that MSMEs were adequately empowered to continually contribute effectively to the Gross Domestic Product (GDP) of the nation.
Citing data from both SMEDAN and National Bureau of Statistics (NBC) which put the number of MSMEs in Nigeria at 41.5million, the Managing Director said that they collectively contribute over 50 per cent of Nigeria’s GDP.
“However, access to finance is still a concern for this critical segment of the economy. The latest figure indicates that at the Micro level, about 90.5% do not have access to credit whilst thefigure for SMEs is put at 67.9%. Other pressing areas which rank high for SMEs are assistance in power and water supply – 83.5% as well as tax rate reduction- 73.1%.”
Underscoring the importance of the event, the Okpanachi said MSMEs are the bedrock of Nigeria’s Industrialization and inclusive economic development noting that as the largest employers in many low-income countries including Nigeria, their viability and growth has been restricted by lack of access to long-term debt capital.
“Our mandate at the Development Bank of Nigeria is to alleviate financing constraints faced by the Micro, Small and Medium Enterprises (MSMEs) in Nigeria through the provision of financing and partial credit guarantees to eligible financial intermediaries on a marketconforming and fully financially sustainable basis and this lecture series is our way of providing a platform for a robust exchange of ideas to tackle the challenges and take advantage of opportunities that exist in the MSME segment of the economy.
“We believe that at the end of today’s interactions we would have a broadened understanding of these challenges and critically examine and act towards practical steps to resolve some of the obstacles that constrain growth within the segment,” he added.
The inaugural Development Bank of Nigeria Plc Annual Lecture Series, is meant to deliberate and forge a sustainable way forward for Micro, Small and Medium Enterprises (MSMEs), not just in Nigeria, but across Africa.
In his keynote address, former President of the African Development Bank (AfDB) Dr. Donald Kaberuka, asserted that unfavorable government policies and bureaucracies rather than lack of access to finance was the major drawback to growth of MSMEs.
“Think of a small car repairer in Kaduna, or a small kiosk owner in Soweto. If electricity is unreliable his small margins are gone even if they had access to finance.
“Think of red tape, and multiple level taxation or inability to access government procurement or not being paid on time.
“But there is also inexperienced management and capacity, and limited access to accounting services,’’ he said.
Kaberuka called on the Nigerian government to intensify efforts to achieve more than six per cent growth if Nigerians were to feel impact of the growing economy.
The maiden edition of the lecture series, was conceived as a thought leadership initiative aimed at providing a platform for a robust exchange of ideas to meet the challenges and opportunities that exist in the MSME segment of the economy.
Investors at the stock market of the Nigerian Exchange Ltd. (NGX) yesterday lost N16 billion due to sell-offs in medium and largely capitalised stocks.
The NGX All Share Index (ASI) decreased by 29.35 basis points or 0.05 per cent to close at 54,886.04 basis points from 54,915.39 recorded on Friday.
Similarly, the market capitalisation lost N16 billion to close at N29.
Analysing by sectors, the NGX Banking Index added 1.3 per cent, and NGX Industrial Goods appreciated by 0.1 per cent.
Also, the Insurance Index down by 0.
5 per cent and NGX Consumer Goods Index depreciated by 0.4 per cent, while the NGX Oil & Gas index closed flat.Meanwhile, market breadth, which is measured by market sentiment was positive, as 19 stocks gained relative to 14 losers.
Access Holdings recorded the highest price gain of 7.14 per cent to close at N9.00, per share.
Cutix followed with a gain of 5.69 per cent to close at N2.23, while University Press appreciated by 5.53 per cent to close at N2.10, per share.
Custodian Investment went up by 5.17 per cent to close at N6.10, while Chams Holding Company appreciated by 4.17 per cent to close at 25k, per share.
Conversely, Ikeja Hotel led the losers’ chart by 9.52 per cent to close at N1.14, per share.
Wapic Insurance followed with a decline of 9.52 per cent to close at 38k, while Stanbic IBTC Holdings went down by 8.52 to close at N36.50, per share.
Multiverse Mining and Exploration lost 5.80 per cent to close at N3.25, while Livestock Feeds shed 5.50 per cent to close at N1.03, per share.
The total volume traded went up by 646.50 per cent to 1.172 billion units, valued at N2.877 billion, and exchanged in 3,066 deals.
Transactions in the shares of Neimeth Pharmaceutical topped the activity chart with 1.069 billion shares valued at N1.581 billion.
United Bank for Africa (UBA) followed with 15.964 million shares worth N128.784 million, while Access Holdings traded 13.033 million shares valued at N114.365 million.
Transnational Corporation (Transcorp) traded 11.770 million shares valued at N15.257 million, while Zenith Bank transacted 9.861 million shares worth N243.759 million.
Analysts at InvestmentOne Research said, “The equities market recorded a negative performance today due to the slumping prices printed in the Consumer Goods sector.
“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.” (NAN)
The Acting Chairman, FCT Internal Revenue Service (FCT-IRS), Mr Haruna Abdullahi, has said that it ranks high in revenue generation because of the agency’s commitment to widening the tax net in the area.
Abdullahi said this in a statement by Mr Mustapha Sumaila, FCT-IRS Head of Corporate Communications, in Abuja yesterday.
According to the statement, Abdullahi said this at the 2023 Summit of Association of Chartered Certified Accountants (ACCA) for members, partners and students in Abuja.
The FCT-IRS boss said one of the strategies put in place by the agency to boost revenue generation was prioritising institutional framework that would outlive the current management.
“We have been working in the last two years to build the institutional framework that will fit into globally recognised institutions.
“We have stepped up our awareness campaigns to educate taxpayers on all our processes as well as mobilised prospective taxpayers to be in the tax net.
“Our engagement with our major stakeholders has also been enhanced overtime as we constantly engage with them.
“We also update and educate them on decisions, introduction and direction of policies,” he said.
Abdullahi further said, “capacity building of staff has also been of utmost priority.
“This is because we cannot have efficient and committed workforce if the staffers are not well trained to deliver optimally.
“From what we have done so far, there will be visible impact in terms of what the service will be generating in the next few years.”
On importance of mentorship at the event, the acting chairman said mentors were important when making career choices.
The acting chairman, who is a Fellow of ACCA, said it was also critical for people who had carved a niche for themselves to identify talents and impact positively in them. (NAN)
The equity market extended its losing streak for the fifth successive session as the market capitalisation decreased by N313 billion due to investors’ continued profit-taking.
The All Share Index (ASI) fell by 574.59 absolute points, representing a decrease of 1.04 per cent to close at 54,915.
61 points.Accordingly, investors lost N313 billion in value as market capitalisation declined to N29.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Sugar Refinery, MTN Nigeria Communications (MTNN), Ecobank Transnational Incorporated (ETI), United Capital and Industrial & Medical Gases Nigeria.
Market breadth remained negative as 25 stocks lost relative to eight gainers.
Chams Holding Company recorded the highest price gain of 8.7 per cent to close at 25k, per share.
University Press followed with a gain 7.57 per cent to close at N1.99, while LivingTrust Mortgage Bank gained 3.37 per cent to close at N3.07, per share.
Sterling Bank appreciated by 2.67 per cent to close at N1.54, while Zenith Bank rose by 2.52 per cent to close at N24.45, per share.
On the other hand, ETI led the losers’ chart by 10 per cent to close at N10.80, per share.
Industrial & Medical Gases Nigeria followed with a decline of 9.32 per cent each to close at N7.30, while Royal Exchange lost 8.22 per cent to close at 67k, per share.
R.T. Briscoe Nigeria shed 7.69 per cent to close at 24k, while International Energy Insurance shed 6.92 per cent to close at N1.21, per share.
Meanwhile, the total volume of trades decreased by 24.23 per cent to 137.287 million units, valued at N1.510 billion, and exchanged in 3,489 deals.
Transactions in the shares of Transnational Corporation (Transcorp) topped the activity chart with 26.085 million shares valued at N33.979 million.
Zenith Bank followed with 14.721 million shares worth N353.890 million, while Sterling Bank traded 13.231 million shares valued at N20.019 million.
United Bank of Africa (UBA) traded 10.242 million shares valued at N81.385 million, while Access Holdings transacted 7.626 million shares worth N66.201 million. (NAN)
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