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Afreximbank financial performance in first half of 2020 pleasing — Oramah

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African Export-Import Bank (Afreximbank) says its Net Income in the first half of 2020, grew by 10 per cent from 137.63 million dollars in June 2019 to 150.75 million dollars in June 2020.

Prof. Benedict Oramah, President, Afreximbank, disclosed this in a statement issued on Monday in Abuja.

He said that that the performance was in spite of the impact of the COVID-19 pandemic,

Oramah attributed the increase to a strong growth in net fee and commission income, which rose by 134 per cent.

According to him, the net interest income for the period grew by 17 per cent to US$285.71 million from US$243.93 million in 2019.

“Our financial performance in the first half of the year was pleasing and demonstrated that we remained focused on delivering value to shareholders,” he said.

Oramah said that this was even as the bank pursued its development agenda and intensified its support to the continent, in its effort to contain the spread of the new coronavirus disease and its devastating economic consequences.

“The Net Interest Margin improved from 3.3 per cent to 3.7 per cent, driven by lower costs of funds as interest rates declined globally.

“Total revenues were strong, rising by 4.4 per cent compared to the first half of 2019, to amount to US$519.8million,” he said.

The Bank president also said that fees and commission income supported the growth in revenues, reflecting continuing progress towards achieving the Bank’s goal of diversifying its revenue sources.

He said that total assets increased by 34 per cent from 14.44 billion dollars as at Dec. 31, 2019 to 19.35 billion dollars as at June 30, 2020.

Oramah noted that this was largely driven by a 26 per cent increase in loans to 15.20 billion dollars and a 76 per cent increase in cash and cash equivalents to 3.91 billion dollars.

“The high liquidity level was in response to the uncertainties caused by the COVID-19 pandemic.

“Liquidity sources were well diversified by geography and products, with African sources accounting for almost 40 per cent, an indication of progress being made under the Bank’s Africa Resource Mobilisation Initiative.

“Despite the growth in total assets, the Bank’s Capital Adequacy Ratio remained strong at 23 per cent in line with the Bank’s Capital Management Policy targets”.

Oramah explained that the capitalisation level was supported by equity injection, internal capital generation and the nature of collateralisation of some of the loan assets funded during the period.

He said that the observed outcome reflected the wisdom of the COVID-19 response measures the Bank launched in mid-March which prioritised the health of its work force.

According to him, it prioritised support for the Bank’s member countries to manage the impact of the pandemic and the need to deliver an acceptable financial performance with minimal credit losses.

“As with previous economic shocks, the Bank launched a key multibillion US dollar intervention tool known as the Pandemic Trade Impact Mitigation Facility (PATIMFA).

“PATIMFA aimed at supporting sovereigns, financial institutions and corporates to deal with the economic and health impacts of COVID-19,” he said.

Oramah added that funding under the facility had been made available to ensure continued access to international trade finance, procurement of vital COVID-19 containment material, food and agricultural input.

“Funding also promoted manufacturing of medical and healthcare products in Africa.

He said that as at June 30, 2020, the Bank had disbursed more than 3.5 billion dollars under the PATIMFA.

The Afreximbank boss added that it provided a grant of three million dollars towards the COVID-19 Special Fund set up by the African Union as well as to the African Centre for Disease Control and other agencies.

He said that despite the adverse effects of the pandemic, the Bank remained well prepared to continue to support the continent while delivering development impact and value to shareholders.(NAN)

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Economy

FGN Poised To Dismantle Kidnap Economy – General Laka

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From Lateef Taiwo

The Coordinator, National Counter Terrorism Centre, Office of the National Security Adviser (NCTC-ONSA), Major General Adamu Laka, has reaffirmed the commitment of the Federal Government of Nigeria (FGN) to ending kidnap economy in the country.

General Laka stated this while briefing newsmen on the activities of the Multi-Agency Anti-Kidnap Fusion Cell in collaboration with the United Kingdom – National Crime Agency on Tuesday in Abuja.

He said the centre had officially launched the State Expansion Programme of the Multi-Agency Anti-Kidnap Fusion Cell, bridging a critical gap between national security coordination and state-level tactical response.

The National Coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.

According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.

He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.

The national coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.
According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.

He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.

General Laka noted the cell had played key roles in supporting rescue operations, disrupting kidnapping networks, and improving interagency coordination.

According to him, experience has shown that while national coordination is crucial, state-level engagement is also indispensable.

“Too often, real-time intelligence, local knowledge, and operational readiness reside with field commands, while national coordination can only succeed when it is informed by ground realities.

“This is the primary purpose of this programme – to close the gap between national-level coordination and state-level response. Essentially, to build direct operational linkages between the Cell and state commands across the country,” Laka said.

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Economy

Food Security: Sanwo-olu Commended Over Launch of ₦500bn ‘Produce for Lagos’

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The Good Governance Campaign Forum (GGCF) has praised the Lagos State Government for launching the “Produce for Lagos” programme, describing this initiative and its ₦500 billion Offtake Guarantee Fund as a brilliant solution to the food insecurity challenges the nation faces.

The Forum issued this commendation in a statement signed by its Coordinator, Rahman Suleiman, on Wednesday, following the official unveiling ceremony of the program earlier in the week.

The program aims to transform Lagos’ food system and reduce the state’s dependency on external food sources, receiving positive recognition both within and outside the state for the Sanwo-Olu-led government’s efforts.

According to Suleiman, the initiative is timely and represents a pioneering collaboration between the Lagos State Government, the private sector, the Lagos Food Systems Infrastructure Company (LAFSINCO), Ekolog, and the Lagos Bulk Trading Company. He noted that this model is designed not only to enhance food production and logistics across the state but could also serve as a scalable framework for improving livelihoods and national resilience.

Suleiman shared insights from the Forum’s sampling of public opinion in Lagos and other states, indicating that people are pleased with the Lagos State Government’s strategic programs aimed at tackling hunger and starvation. He emphasized that a key component of the “Produce for Lagos” program is its data-driven approach, which will help address agricultural inefficiencies and strengthen value chains.

“Food security is a collective responsibility that we cannot afford to neglect as a nation,” Suleiman stated. “We are grateful to God for providing us with a leader like Sanwo-Olu, who is visionary, forward-thinking, and compassionate toward ordinary people.”

He commended Governor Sanwo-Olu for consistently setting benchmarks and leading by example in subnational governance. These achievements underscore the economic growth, infrastructural development, and urban planning efforts of the Lagos government.

“Governor Sanwo-Olu is a trailblazer; he has done exceptionally well, and we fully support his programs and policies. His work over the past six years speaks for itself,” he added.

Suleiman noted that this initiative, a partnership between the state government and the private sector, is expected to significantly boost agricultural production.

During the launch, Governor Sanwo-Olu also announced the deployment of a fleet of 150 cold and dry trucks—the largest of its kind—in partnership with the private sector.

Business mogul Tony Elumelu, who supported the project with ₦25 billion, stated that food security is crucial and expressed satisfaction with the collaboration between Lagos and other participating states.

Other prominent individuals at the event included Amir Kamel, Vice President of Afreximbank, and Michel Deleen, the Consul General of the Kingdom of the Netherlands, among other dignitaries.

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Economy

Constitution Amendment: Group Urges NASS, FG To Prioritise Restructuring, Regionalism

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… rejects the creation of new states

A prominent youth organization, the Youth Bureau, has urged the National Assembly to prioritize genuine restructuring of Nigeria, emphasizing regional autonomy and the establishment of State Police without further delay. This call comes as the legislature reviews the nation’s constitution.

The demand was articulated in the group’s Position Paper presented to the National Assembly Committee on Constitutional Amendment for the South-West Zone, which convened recently in Lagos.

In a statement signed by its Southern Coordinator, AbdulRahman AbdulRazaq, on Thursday in Lagos, the Youth Bureau also rejected calls for the creation of new states. The group warned that the Supreme Court’s judgment on local government contradicts their position, asserting that its implementation should be set aside. They believe only the State Government should have the authority to create local governments.

AbdulRazaq urged President Bola Ahmed Tinubu to prioritize comprehensive restructuring, as it is fundamental to effective governance and development. He encouraged the National Assembly Committee on Constitutional Amendment to make bold decisions that will have a positive impact on the populace.

He pointed out that the regional governments established in the late 1960s in Nigeria facilitated healthy governance and development, particularly under the Action Group government led by Chief Obafemi Awolowo in the Western Region. During that period, significant advancements were made in free education initiatives, healthcare infrastructure, industrialization, and overall infrastructure growth.

AbdulRazaq noted that the abolition of regional autonomy by the late General Aguyi Ironsi led to a unitary system of government, which resulted in excessive concentration of power in the central government, a lack of adherence to the rule of law, and restricted resource control and financial autonomy for the regions.

The Youth Bureau’s position paper includes the following demands and recommendations for the National Assembly Committee on Constitutional Amendment:

Our Demands

We urge the National Assembly Committee to consider the following:

  1. Genuine restructuring of the country based on regional autonomy.
  2. No need for the creation of additional states.
  3. The formation of State Police without further delay.
  4. Recognition that local government is a component of state government; the Supreme Court’s judgment on local government contradicts this principle, and its implementation should be set aside. Only the State Government should have the authority to create local governments.

Conclusion

We believe that a decentralized governance system founded on devolution and decentralization will ensure political and fiscal autonomy for its component units and promote equity among them. We urge President Bola Ahmed Tinubu to prioritize comprehensive restructuring and encourage the National Assembly Committee to make bold decisions that positively affect the citizenry.

Recommendations

  • Decentralize governance in theory, practice, content, and character.
  • Ensure equity among the component units.
  • Guarantee political and fiscal autonomy for the regions.
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