Economy
Emefiele Inaugurates N500m Youth Entrepreneurs’ Scheme
Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, yesterday launched the apex bank’s N500 million Tertiary Institutions Entrepreneurship Scheme (TIES).
Speaking at the launch of the scheme in Abuja, Emefiele said the intervention would create an enabling business environment that supports innovation.
It would also enable the youth to unleash their entrepreneurial potential, by redirecting their focus from seeking white-collar jobs to embracing a culture of entrepreneurship, he said.The initiative, which the CBN governor hinted at earlier this year, was expected to boost entrepreneurship in higher institutions of learning.
Emefiele stressed the need for the environment to provide support in re-orientating, training, and providing a financing model apt to the peculiarities of the sector within which the businesses operate.
He urged government at all levels to evolve policy measures to support entrepreneurial development among the youth in the country. The CBN governor said this was particularly crucial given that about 600,000 students graduate yearly from Nigerian tertiary institutions without commensurate employment opportunities in both the public and private sectors.
Emefiele said the essence of the intervention was to create a paradigm shift from the obsession for white-collar jobs among graduates and promote entrepreneurship. He said the CBN was particularly concerned about the current level of unemployment among the youth population.
He explained that the intervention consisted of three main components, including term loan, equity investment, and development grant.
Emefiele said the scheme would make it easy for youths to access credit and create jobs for themselves and others. He warned that the finance to be provided was not a grant but a loan, which should be used for the intended purposes.
He said entrepreneurship remained an integral part of any economy, adding that entrepreneurs play a key role in driving growth and innovation, which in turn results in job creation.
Emefiele said in line with its mandate of ensuring monetary and price stability, and its developmental mandate of ensuring inclusive growth in the economy, the central bank had introduced several programmes to create an ecosystem that allowed the flow of affordable credit to the real sector.
He added that these interventions were industry-led and designed to support the resilience of targeted priority sectors and segments for growth and job creation.
He explained, “With an estimated population of 213 million, out of which two-third are youth, aged under 35 years, the nation is faced with a historic opportunity, particularly as the demography continues to create clear evidence of their relevance to economic development, as accentuated by the global recognition of Nigerian tech start-ups and continued growth of businesses in the technology space owned by the youth.
“In realisation of this, the CBN has introduced several innovative financing programmes designed to extend low-cost financing to youth entrepreneurs across the country.
“These interventions have continued to receive resounding commendations, as they have proven effective in extending credit to youth entrepreneurs across the country.”
Essentially, he said TIES was conceived as part of measures to promote entrepreneurship development among the graduate and undergraduate youths of Nigerian polytechnics and universities, with the release of the implementation guidelines and the opening of a portal for submission of applications in October 2021.
The scheme aims at providing an innovative financing model that will support the development of innovative entrepreneurial ideas among graduates and undergraduates of tertiary institutions in the country, the CBN governor said.
The ceremony also witnessed the inauguration of the Body of Experts (BoE) by the CBN governor. The body, chaired by the Group Managing Director/Chief Executive, Sterling Bank Plc, Mr. Abubakar Suleiman, among other professionals, seeks to evaluate and rank entrepreneurial presentations made by the tertiary institutions under the development (grant) component.
Emefiele said members of the body were professionals of impeccable standing, drawn from the academia, professional bodies, and industry. He said part of their job was to recommend projects with high potential and transformational impact for grant awards.
Other members of the BoE include Chief Financial Officer, First Bank Plc, Mr. Patrick Iyamabo; Mr. Adamu Lawani (Zenith Bank Plc); Ms. Ngover Ihyembe-Nwankwo (Rand Merchant Bank); Mr. Ashafa Ladan (National Universities Commission); Mr. Abbati D.K. Muhammad (National Board for Technical Education); Dr. Friday Okpara of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN); Mr. Tope Fasua (Global Analytics Consulting); Brigadier-General Folusho Oyinlola (National Defence College); and Ms. Bolanle Adekoya (PWC). Mrs. Temitope Akin-Fadeyi of the CBN is the body’s secretary.
Emefiele said the official launch of the TIES and subsequent inauguration of the BoE for the scheme’s development component was a testimony to the important role the youth play in building new blocks for economic growth, particularly as national growth was highly dependent on strong and competitive businesses.
He said bridging their financing gaps and enhancing access to low-cost credit to drive development of business was a task that could only be addressed by an innovative financing model that correlates with the complexity and dynamics of these small businesses.
Emefiele said the scheme was designed to address three verticals of the segment namely, term loan component, which provides direct credit opportunities to graduates of Nigerian polytechnics and universities of not more than seven years post-graduation.
He said an applicant, if successful, should be eligible for a maximum of N5 million for an individual, sole-proprietorship or small company; and a maximum of N25 million for a partnership or company.
The tenure of the facility is a maximum of five years, with a one-year moratorium, and at an interest of five per cent per annum, which shall revert to nine per cent from March 2022.
The pilot phase of the scheme is presently being implemented through the Bank of Industry (BOI) with the development of an application portal and processing of submitted applications.
The equity investment component is designed to support start-ups, existing businesses requiring expansion, and ailing businesses seeking resuscitation, and shall be implemented under the bank’s AGSMEIS equity window.
The investment limit shall be subject to the limit prescribed by the AGSMEIS guidelines and the investment period not more than 10 years.
Emefiele also noted that the development grant component was aimed at raising awareness and visibility of entrepreneurship among undergraduates of Nigerian tertiary institutions. He explained that here, polytechnics and universities in the country shall compete in a national biennial entrepreneurship competition where undergraduates are presented by the tertiary institutions to pitch innovative entrepreneurial or technological ideas with transformational potential.
According to him, three top institutions at the regional levels shall proceed to the national level, where the top five shall be awarded grants ranging between N120 million and N250 million.
He insisted that the grant awards should be used by the tertiary institutions solely for the development of the award-willing ideas.
Further commenting on the genesis of the scheme, Emefiele said, “As you are all aware, at the occasion of the 51st convocation of the University of Lagos, in July 2021, I delivered the convocation lecture, titled, “National Development and Knowledge Economy in the Digital Age: Leapfrogging SMEs into the 21st Century.”
“At that event, I promised that the central bank would seek fresh collaboration with the nation’s tertiary institutions to develop entrepreneurship programmes, and to support – through the provision of access to finance – graduates and undergraduates who have bankable ideas, to bring the ideas to fruition.
“Engagements have been on-going between the central bank and the leadership of some of our tertiary institutions regarding the framework for an innovative financing model that will support entrepreneurship development among our graduates and undergraduates.
“This launch of the Tertiary Institutions Entrepreneurship Scheme today, is a culmination of the engagements and fulfilment of that promise.”
Highlights of the event included the presentation of commemorative cheques to five youth entrepreneurs whose proposals were found worthy of CBN’s financing under the pilot scheme.
Speaking during the launch of the initiative, Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, hailed the efforts of the central bank to ensure that the economy remained afloat despite the disruptions occasioned by the COVID-19 pandemic.
Represented by the Director, Public Affairs and Bilateral Relations, Office of the SGF, Mr. Olakunle Fashina, Mustapha said, not only would the TIES boost economic growth and reduce graduate unemployment but it would also provide well-grounded incentives for the ever-growing graduate population.
He urged the tertiary institutions to deploy merit in the selection of the proposed beneficiaries of the scheme as well as monitor key performance indicators as applications are submitted.
Speaking at the occasion also, Minister of Education, Mallam Adamu Adamu, described the intervention as a laudable effort by Emefiele to promote entrepreneurial skills in the ivory towers. He said the CBN was playing a significant role in laying a solid foundation for technological development in the tertiary institutions.
The minister, who was represented by the ministry’s Director, University Education, Mrs. Rakiya Iliyasu, he said no country could make appreciable growth in sound technological innovation and sustainable development without focusing on the base, which is the institutions responsible for training the students in the fields of agribusiness, information technology, creative industries among others.
He said it was on record that the scheme was designed to create a paradigm shift among graduates from the pursuit of white-collar jobs to entrepreneurship geared towards job creation and economic growth. ThisDay
The Nigerian equity market on Wednesday experienced a downturn, losing N673 billion in market capitalisation due to sell-offs in major stocks like MTN Nigeria and Transcorp Hotel
Specifically, the market capitalisation shed 1.20 per cent or N673 billion to close at N55.494 trillion, compared to 56.
167 trillion recorded on Tuesday.The All-share Index also lost 1.
20 per cent or 1,190 points to close at 98,121. 30, in contrast to 99,311.54 posted in the previous session.Consequently, the Year-To-Date (YTD) return declined to 31.22 per cent.
Other declined equities, such as FBN Holdings, Cornerstone Insurance, Mutual Benefits Assurance, among others, also affected the market performance negatively.
However, the market breadth closed positive with 22 advanced stocks outnumbering 19 declined others.
On the gainers log, Sunu Assurances, Neimeth International Pharmaceuticals, The Initiative Plc(TIP) led by 10 per cent each to close at N1.21, N1.98 and 1.98 per share, respectively.
Cap Plc followed closely with 9.90 per cent to close at N28.85 and UPDC Real Estate Investment Trust rose by 9.76 per cent to close at N1.35 per share.
On the flip side, Transcorp Hotel and MTN led the losers log by 10 per cent each to close at N87.93 and N201.60 per share, respectively.
Oando trailed closely by 9.90 per cent to close at N9.10, FBN Holdings lost 9.82 per cent to close at N19.75, while FIDSON Healthcare Plc dropped 9.82 per cent to close at N19.75 per share.
Analysis of the market activities also showed trade turnover settled higher relative to the previous session, with the value of transactions up by 22.10 per cent.
A total of 395.75 million shares valued at N9.58 billion were exchanged in 7,907 deals, as against 574.43 million shares valued at N7.84 bilion in 7,324 deals traded previously.
Meanwhile, Guaranty Trust Holding Company Plc (GTCO) led the volume and value chart with 81.41 million shares valued at 2.93 billion, Zenith Bank followed by 46.16 billion shares worth N1.69 billion.
United Bank of Africa(UBA) traded 41.60 million shares worth N953.52 million, FBN Holdings transacted 23.44 million shares valued at N480.99 million and Access Corporation sold 22.30 million shares worth N361.89 million.
Reacting, Mr David Adonri, Vice Chairman, Highcap Securities Ltd., said that the equity market had been undergoing some forms of corrections to realign it with fundamentals of the capital market.
Adonri, in an interview in Lagos, said this was responsible for the recent bearish mood of the market.
According to him, underpinning this correction is the high yield on debt and failure of equities to justify its exuberant rally.(NAN)
Seplat Energy, an independent indigenous energy company, on Tuesday, said it had paid two billion dollars tax contribution to the Federal Government of Nigeria since its listing on the Nigerian Exchange Ltd.(NGX) in 2014.
Mr Roger Brown, Chief Executive Officer(CEO), Seplat Energy, revealed this while delivering a speech at the Closing Gong ceremony in Lagos.
The event was to commemorate the company’s 10 years anniversary of dual listing on the Premium Board of the Nigerian EExchange Ltd.
(NGX) and the Main Market of the London Stock Exchange (LSE).Brown stated that the oil and gas company, Seplat, also contributed 2.8 billion dollars as tax to the federal government over the past 13 years, after its establishment in 2009.
He explained that the company paid 1.54 billion dollars as royalty to the government, 329 million dollars as Petroleum Profits Tax, 273 million dollars as Value Added Tax, and 259 million dollars as Witholding Tax.
According to him, the energy firm also paid a tax of 276 million dollars to the Nigerian Delta Development Commission (NDDC) and others as well as 126 million dollars as Pay-As-You-Earn(PAYE).
The CEO stated that at post Initial Public Offering(IPO) of the firm, it generated 1.7 billion dollars in Free Cash Flow(FCF) and invested 1.6 billion dollars in Capex.
He also said that the company had paid dividends worth 575 million dollars between 2014 when it became listed and the financial year ended 2023.
Brown noted that the business of the energy firm continued to generate strong cashflows, reflected in its strong FCF and NCFO generation.
He said: “Similarly, we have generated a cumulative 3.3 billion dollars in net operating cash flow post IPO.
“Our strong cash flow generation has supported our ambitions to expand our business, which has seen us spend an aggregate of 1.6 billion dollars in capital expenditure.
“In over 10 years, we invested 57 million dollars in community projects on health, education and empowerment as strong commitment to community development.
“As a leading supplier of gas to Nigeria’s domestic Gas-To-Power Market, at times Seplat gas powered 20 to 30 of Nigeria’s domestic grid in 2023.”
He expressed delight over the feat, reiterating Seplat Energy’s commitment to leading Nigeria’s energy transition.
According to him, the power of indigenous companies is to bring growth and prosperity to their home countries and the people.
“One example of how Seplat Energy is making an enduring difference to Nigeria and host communities where we operate is that nearly 50 million dollars had been invested by our Joint Venture partnerships in communities since our inception to date,” Brown said.
“Truly, Seplat Energy has delivered significant value by enhancing strategic, operational and financial achievements in 10 years as a listed company,” he added.
In his comments, Mr Temi Popoola, Chief Executive Officer (CEO), NGX Group, emphasised the significance of Seplat Energy’s decade of dual listing.
He said, “If we were to look back to our market and tried to find landmarks, the last major landmark you will find in the last ten years is this transaction that we are celebrating today, and the market is very grateful for that.”
Congratulating Seplat Energy on this milestone, in his welcoming remarks, Alhaji Umaru Kwairanga, NGX Group Chairman, highlighted the importance of partnerships between the NGX and companies like Seplat Energy in driving economic growth and development.
He stated that “Seplat’s journey symbolises resilience, innovation, and a commitment to excellence, making them a beacon of corporate governance and operational expertise.
“Seplat Energy has emerged as a leading indigenous energy company, deeply integrated into Nigeria’s economic landscape and the NGX Group remains committed to supporting companies like Seplat Energy as they drive economic growth and contribute to our nation’s prosperity.”
Reflecting on the significance of the decade of dual listing, Mr Udoma Udo Udoma, Board Chairman, Seplat Energy, remarked, “Seplat Energy is committed to driving Nigeria’s transition to sustainable and affordable energy, harnessing its power to improve lives by transforming the economy.
“We have ambitious goals. We are investing in Nigeria. We will support the federal government’s energy transition policy, and we will partner with FG in whatever area they want us to do.
“That is our commitment. We will grow Seplat while also maintaining the highest standard of corporate governance.”
Also commending Seplat Energy on the decade of listing, Mr Jude Chiemeka, Acting CEO, NGX, stressed the importance of the capital market in helping companies raise funds and create wealth for all.
Chiemeka said, “Seplat Energy was listed at N576 at listing and yesterday it closed at 3,370, which is an increase of over 484 per cent.
“The figures show that in the last 10 years, the company has paid out 575 million dollars in dividend payments to shareholders in Nigeria and London where they are also listed.
“So, this company has given investors a huge opportunity to really participate in wealth creation.
“Reports show that Nigeria would be among the top 20 countries in the next 25 years, and I think Seplat is poised to be one of the institutions driving growth, prosperity, and inclusion in our nation.”
Also, gracing the Closing Gong ceremony was Sen. Heineken Lokpobiri, Minister of State, Petroleum Resources (Oil), who commended the company on it laudable achievements.
“I am happy to be part of today’s celebration and Seplat’s exceptional performance in the last ten years and as Minister of State, Petroleum Resources,
“I assure you that we will partner with Seplat to expand their investments, not only for the benefit of its shareholders, but also for Nigeria.
“The least the government can do anywhere in the world is to create an environment where companies like Seplat continue to thrive.”(NAN)
No Fewer than 34 states in the country failed to honour invitation to attend the just-concluded 35th Enugu International Trade Fair.
Reports says that only the Federal Capital Territory (FCT), Abuja; Ebonyi State and the host state, Enugu State, graced the 11-day international goods, services and idea showcasing fiesta.
The fair, which began on April 5 and ended on Monday, April 15, was themed: “Promoting made-in-Nigeria products for global competitiveness.
”Reacting, the Director-General of Enugu Chamber of Commerce, Mr Uche Mbah, said that the chamber followed due diligence in the invitation of all states to the fair.
Mbah noted that official letters were sent and official follow-up on the letters were made to ensure their presence and availability.
According to him, “we did everything to get them to add colour and increase the showcasing of products from different parts of the country and their investment viability.
“We did put in spirited efforts to see that all states participated, as most of them do previously.
“But it is unfortunate that many did not respond after receiving official letters, phone calls and interpersonal follow-ups were made.
“We got clear assurances from Kano State but they did not show up.
“We pushed harder to get Abia State but in the end, we were told that the governor did not approve,” he said.
Reports says that over 100 organisations were at the fair, which included: over 50 private companies as well as over 45 Federal and State government ministries, agencies and departments. (NAN)
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