Business News
Private Sector to Raise N1.2trn for Roads, other Infrastructure
By Mathew Dadiya, Abuja
The governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has disclosed that the private sector has agreed to mobilise a whopping N1.2 trillion to support the federal government in the development of critical infrastructure in the country to enhance economic development.
The fund, according to the CBN governor, will be raised through a Special Purpose Vehicle (SPV) working with the Federal Government, and key development finance agencies.
Speaking during a dinner on Wednesday night at the State House, Abuja for participants of the Going for Growth 2.0 Roundtable Session, Emefiele said that the well-structured SPV, would be used to mobilize close to N1.
2 trillion in funds from banks, pension funds and other financial institutions, to fund road, power, and port infrastructure.He said that six key road projects and three seaport projects would be identified for funding.
”The framework for this SPV is currently being worked on and will be ready for implementation by October 2020.
”When implemented the SPV will help to reduce the burden of government financing of infrastructure projects and enable the government to focus on funding other priority areas. It will also reduce the cost of transporting goods across the country for farmers, SMES and Manufacturers. More importantly it will help improve our ability to attain double digit growth rates.”
The apex bank chief added that the participants at the event stressed the need for greater collaboration between the public and private sector in addressing some of the emerging challenges to growth.
According to him, one key highlight was the need to ensure that the Nigerian economy is self-sufficient in the production of key goods and services, as this would strengthen our buffers and insulate our economy from external headwinds.
He started that recommendations were also made on ways to improve broadband penetration in the country, which is critical in enabling Nigerians access the benefits that come with greater utilization of technological applications.
One area highlighted was the need to create a one- stop- shop that investors could interface with in order to reduce multiple taxation, he said.
He said that the participants noted the need for innovative financing schemes that require minimal collateral from farmers and SMES was key to improving agriculture and manufacturing productivity.
The central bank governor said that President Buhari’s acceptance to host the dinner at very short notice, was a reflection of the importance he placed to listening to the views of stakeholders in the Nigerian Economy, on ways to enable greater economic growth.
Emefiele recalled that in June 2019, the 1st Going for Growth Roundtable Session was held in Lagos where key stakeholders in the private sector shared their perspectives, on ways in which the Central Bank of Nigeria could help shape economic outcomes in the country.
“Some of these recommendations were useful in assisting the CBN design policy measures, which enabled the N1.9 trillion increase in credit to the real sector at low interest rates, between May and December 2019.
“Following the success of the 1st roundtable session, we decided to convene the 2nd session today, to further enhance your objective of driving economic growth. The second session is timely considering the external challenges countries across the world are facing, following the outbreak of the corona virus in December 2019.
“The corona virus has affected global supply chains in key markets and has resulted in significant reductions in the demand for goods and services by consumers. More importantly, the impact of the corona virus has led to a 45 percent decrease in the price of crude oil since the beginning of the year. It is expected that global growth would also drop in 2020.
“Given our dependence on crude oil for close to 80 percent of our export earnings and 50 percent of government expenditures, the drop affects the government’s ability to meet its capital and infrastructure funding objectives.
The roundtable was therefore an opportunity for stakeholders in the public and private sectors to share ideas on ways to strengthen our buffers and promote greater economic growth. Your Excellency Sir, during preparations for the roundtable, we expected only 50 participants, but to our great surprise over 400 people participated in the roundtable. This high level of attendance indicates the enthusiasm amongst key stakeholders in the private sector.”
The CBN governor said that the attendance by key ministers in the government also created an avenue for the private sector to listen to the government’s perspective on measures it was taking to address these challenges.
The Greater Port Harcourt City 2024 Management Retreat, with the theme, “Transiting to New Smart Cities; The Beginning” which held from April 26 – 27, 2024 at the Swiss International Hotel, Mabisel, Port Harcourt brought together a diverse group of government officials, stakeholders, industry experts, and leaders of thought to deliberate on key issues related to the sustainable development and growth of Greater Port Harcourt City.
The retreat was flagged-off by the Governor of Rivers State, Sir Siminilayi Fubara, ably represented by the Deputy Governor, Prof (Mrs) Ngozi Nma Odu who assured the Greater Port Harcourt City Development Authority (GPHCDA) management that the Governor has a keen interest in seeing that the vision of creating the Greater Port Harcourt City is fully realized during his tenure.
He emphasized his commitment to support the authority towards the achievement of the vision for the good of the people of Rivers State and truly make Greater Port Harcourt City a model for other states to emulate, calling on the management to seize the moment and lay the ground work for a city that is prosperous, liveable and futuristic.
In his address, the acting Sole Administrator TPL (Dr) Tonte Davies highlighted the road map and action plan, which the GPHCDA is undertaking towards achieving the vision of creating new smart cities and in the context of the outlined drive, the recent ground-breaking for the ongoing 20,000 low income housing units is a recognised cardinal move that points to the start of a major implementation activity which will enhance this focus.
He also listed achievements like the completed phase 1 storm water canal retention, the 500,000liters capacity water project, the installed 11kva switch-gear panel, and 3kva electricity power substation amongst other ongoing infrastructural projects. Dr Davies happily informed the meeting of the introduction of a digital solution to streamline physical planning regulations and documentation to facilitate business transactions and enhance express approvals, which promotes the ease of doing business in that regard.
The Executive Secretary, Nigerian Content Development Management Board, Engr. Omatsola Felix Ogbe, represented by Mr Olubisi Okunola, Manager Strategy, presented a paper on “Transformation and Reorganisation of a 21st Century Organisation; The NCDMB Experience.” He took the participants through the transformative journey of the board, which placed them as one of the most productive public sector organisations in the country. He stated that the board has transformed the oil and gas sector with strategic partnerships, which has enhanced local participation in the industry to about 70% in the past few years.
Also an international investor from Gambia and CEO of RIV/TAF, Mustapha Njie, presented a paper on affordable housing Initiative and promised the timely completion of the ongoing TAF City 20,000 housing units project, a pet project of Gov Sim Fubara. He gave participants strategic insight on the keys to successful project implementation and project delivery and stated that the RIV-TAF project has recorded remarkable progress with *about* 400 housing units *at various stages of completion within three months of its flagoff.*
The lead paper presenter, renowned Town Planner Kazeem Sanusi tasked the management of the Greater Port Harcourt City Development Authority to stand out in their responsibilities emphasizing that the most beautiful aspect of planning is inclusiveness, utilizing the power of crucial discussions and team work. He stated that the GPHCDA stands on the threshold of history to transform the new city into a model smart city just like Dubai was transformed in the past few decades.
He urged the participants to be committed to fostering partnerships and *collaborations* to drive sustainable development in Greater Port Harcourt City, including engaging with private sector stakeholders, civil society organizations, and international partners to implement the sustainable development practices and initiatives in the new city.
In his closing remarks the Administrator, Greater Port Harcourt City, TPL (Dr) Tonte Davies promised a commitment to the comprehensive action plan outlining key priorities, initiatives and timelines for implementing the ideas and recommendations generated during the retreat. He further declared that the just concluded Greater Port Harcourt City Management retreat has set the stage for a new chapter in the city’s development journey, noting that the vision, passion and commitment of Governor Sim Fubara and the enthusiasm and shared vision of all participants has laid a strong foundation for the sustainable growth and prosperity of Greater Port Harcourt City and the state at large.
The Lead Consultant Mr Ono K. Akpe of Red Sapphire Ltd , Abuja, who led a team of seasoned facilitators engaged the participants for the two days at the retreat with cutting edge intellectual discourse to broaden knowledge in various aspects of management covering work ethics, organizational culture, entrepreneurship, team building, infrastructural development, innovation and mind-set change, re-branding and marketing smart cities.
By Tony Obiechina, Abuja
The African Export-Import Bank (Afreximbank) has announced the successful completion of a first-of-its-kind India-focussed club deal for US$282.00 million.
Initiated for the exclusive participation of Indian lenders, and arranged by Bank of Africa UK PLC, the primary syndicated club deal saw participation from Indian lenders through their overseas branches and subsidiaries in the Dubai International Financial Centre in the United Arab Emirates, Singapore and Mauritius.
The facility, which was backed by six participating banks and financial institutions, including five that joined as first-time lenders to Afreximbank, helping the Bank achieve its objective of diversifying its funding sources, carries a three-year tenor.
At a commemorative event held in Dubai, U.A.E., to mark the conclusion of the deal, Haytham ElMaayergi, Executive Vice President at Afreximbank, said that the conclusion of the initiative represented a major milestone for the Bank as it sought to fulfil the key objectives of its funding programme.
Highlighting the importance of investing in, and for, Africa, Mr. ElMaayergi said: “this facility will help Afreximbank to continue to play a major role in the development of intra-African trade and trade between Africa and the rest of the world, particularly with India.
It is a testament to the rapid growth in Africa’s economic relationship with India and is evidence of Afreximbank’s growing ability to harness resources into Africa and to fund trade finance related investments that would have a positive impact on trade between Africa and India.”
Chandi Mwenebungu, Director and Group Treasurer of Afreximbank, reviewing the Bank’s vision for Africa, said that its funding objectives included achieving the diversification of its liability book by geography, investor type and tenor.
Also addressing guests at the event were Said Adren, CEO of Bank of Africa UK PLC, who thanked the lenders for their participation, and Zineb Tamtaoui, General Manager of Bank of Africa, Dubai Branch, who expressed appreciation for the opportunity to put together “a landmark deal that would be a stepping stone to many India-focused club deals going forward.”
By Tony Obiechina, Abuja
Geregu Power Plc has generated N50.4bn on electricity sales and capacity charges to Nigerians in the first quarter of 2024.
The power company which is the first listed power company of the Nigerian Exchange Ltd disclosed the performance in its Q1, 2024 financial statement.
The company grew its Q1 revenue by 225 per cent from N14.
2bn in 2023 to N50. 4bn in 2023.A breakdown reveals that Geregu Power sold energy worth N31bn and received N19bn as revenue from capacity charge.
Recall that the power company posted an annual revenue of N82.9bn in the full year of 2023 but it has covered half of the amount in Q1.
The revenue was above the company’s forecast for Q1 2024 when it projected its revenue to rise to N31.24bn.
Geregu Power recorded a profit before tax of N21.9bn up from the N5.3bn recorded in Q1 of last year, reflecting 307.8 per cent growth.
During the period underreview, the company saw its profit after tax rose by 307.3 per cent to N14.46bn from N3.54bn recorded in Q1 of last year. In the full year 2023, the company made N16.1bn net profit.
The net profit was above the company projection of N5.5bn.
Geregu Power took an income tax charge of N7.43bn, up from the N1.8bn in Q1 2023. The tax charges were higher than the N2.7bn projected for Q1 2024.
The company also spent N21.5bn on the cost of sales involving gas supply and transportation, up from the N6.6bn spent on gas supply and transportation in Q1 2023.
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