Speaking during a pre-conference press briefing held yesterday in Lagos,  CITN President/Chairman of Council, Samuel Agbeluyi, said the event presents oportunity for shaping the Nigeria fiscal landscape.

He said the event, slated for May 13^th and 14^th, will be attended professionals, policymakers and stakeholders to chart a formidable course for the Nigeria tax industry.

Agbeluyi, said the conference, which holds at Abuja Chamber of Commerce and Industry (ACCI) International Trade and Convention Centre, FCT, Abuja, with theme: “Sustaining Tax Culture and Economic Road Map for Nation Building,” will present opportunity for attendees to discuss issues like  tax reforms, compliance strategies, innovative tax solutions, and the pivotal role of taxation in driving economic growth and development.

To streamline the conference experience, CITN has outlined detailed arrangements for attendees. Registration will commence at the event, with provisions made for those arriving from airports to expedite the process. Pre-registration and materials collection will also be available for local participants to mitigate on-site congestion.

Attendees have been informed of the fee structure, with physical attendance requiring a payment of N150,000; virtual participation to cost N100,000 and foreign delegates expected to pay $500.

A notable lineup of dignitaries is expected to grace the occasion, including Governors Dapo Abiodun of Ogun State, Caleb Mutfwang of Plateau, Umar Namadi of Jigawa State, among others.

 ”For tax professionals, policymakers, and enthusiasts alike, the 26th Annual Tax Conference promises to be a pivotal event, poised to influence the trajectory of Nigeria’s tax ecosystem in the years ahead,” the institute said.

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The Central Bank of Nigeria (CBN) plans to recapitalise banks will create opportunity for lenders to extend more credit to the domestic economy, President/Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN), Ken Opara has said.

He spoke yesterday during the institute’s 2024 annual lecture held in Lagos.

Opara said the Net Domestic Credit stood at N66.4 trillion as of December 2022, showcasing the substantial credit extended by financial institutions to the real sector of the economy.

This figure, he said experienced a significant surge to N96.1 trillion by December 2023, highlighting the tremendous potential for growth and development in the real sector.

Opara said recently announced upward review of the Minimum Capital Requirements of Nigeria by the apex bank would further empower banks to extend more credit to the economy’s productive sectors.

“Despite the significant relevance of the real sector, access to credit for such key sectors compared to other climes is relatively low.

He disclosed that a survey report conducted in more than 40 economies and released by Statista in 2024, nearly US $141 trillion worth of credit had been lent to the real sector in advanced economies in the second quarter of 2022. The figures were twice as high as the volume of credit to the same sector in emerging markets.

It is worth highlighting the notable improvements in liquidity within Nigeria’s real sector. According to data from the Central Bank of Nigeria (CBN), the Net Domestic Credit stood at 66.4 trillion Naira as of December 2022, showcasing the substantial credit extended by financial institutions to the real sector of the economy.

However, the volume of credit to the key sectors in Nigeria is showed that agricultural sector got N5.8 trillion representing about six per cent of the total credit; manufacturing sector – N19.7 trillion representing approximately 21 per cent of the total credit and services sector – N36 trillion representing 37.4 per cent of the total credit.

He advocated more credit to these key sectors and particularly the agriculture sector.  Also speaking, Professor of International Finance Law, University College, London, Graham Penn, said loan sales are an important part of balance sheet management for banks because they allow banks to use their capital and loan origination capabilities more efficiently, and enhance their ability to manage credit risk.

He said: “They allow banks to relieve the capital carrying costs of the relevant loans. Allow banks to crystalise their loss where the borrower has defaulted/run into financial difficulty,” he said.

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Analysts at Afrinvest West Africa, said that although the naira  lost 2.4 per cent against the dollar to settle at N1,169.99  at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window- official window, the local currency appreciated by 7.4 per cent to close at N1,145 to dollar  week-on-week at the parallel market.

The NAFEM is the market trading segment for investors, exporters and end-users that allows for forex trades to be made at exchange rates determined based on prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian forex market.

Analysts expected sustained naira appreciation as CBN keeps short-term remedies to strengthen the naira, going.

“In the currency market, activity level in the NAFEM window soared to 276.1 per cent week on week to $1.7 billion while the naira lost 2.4 per cent against the dollar to settle at N1,169.99 to dollar. meanwhile at the parallel market, the naira closed at N1,145 to dollar indicating 7.4 per cent appreciation, week-on-week,” the analysts said. .

The local currency had of recent commenced rapid recovery, as volatility in the market dropped after the Central Bank of Nigeria (CBN) commenced dollar sales to bureau de change operators.

Legitimate needs driving forex demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

Managing Director/CEO, Financial Derivatives Company Limited, Bismarck Rewane disclosed that cost pressures are likely to ease due to the naira’s rebound.

Rewane, also an economist, said the naira had since February, appreciated significantly across the markets, fueled by sanitisation of the forex market, an increase in forex supply and a fall in the demand for dollars.

The settlement of the $7 billion verified forex backlog of forward commitments have boosted confidence and improved the credibility of the Central Bank of Nigeria (CBN).

“However, the pressing question remains, will the naira tumble again? The answer is No, if Nigeria continues to do the right things. Prospects for forex earnings are promising, with foreign portfolio investments on the rise. Nigeria’s key export commodities have also seen significant price surges, with cocoa trading at a record high of over $10,000 per tonne in the global market and oil prices exceeding $85pb as oil production reached an impressive 1.48mbpd in February 2024,” Rewane stated.

The naira’s appreciation, he further stated, followed the Monetary Policy Committee (MPC) meeting on February 26 and 27, during which interest rates was increased sharply by 400 basis points (bps) to 22.75 per cent per annum.

The MPC also met on March 24/25, agreeing to hike interest rates by 200bps to 24.75 per cent per annum to keep prices in check.

“These moves, combined with the CBN house-cleaning exercise to mop up excess demand for dollars, signal that the apex bank intends to stay on the path of orthodoxy to positively anchor inflation and stabilize exchange rates. Consequently, though slowly, the naira is expected to sustain appreciation,” Rewane said.

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The event was held in partnership with the esteemed Business Council for International Understanding (BCIU) and the U.S. Department of States in Washington DC on Monday.

The event which was held on the sidelines of the just concluded IMF World Bank Spring Meetings was organised by the BCIU and US Department of State to enhance collaboration and fortify commercial diplomacy among nations, institutions and individuals.

Speaking during the event, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, noted that the bank’s co-hosting of the event via its American subsidiary, underscores its commitment towards cultivating robust relationships within the development communities in the United States.

He said, “As a distinguished member of BCIU, a non-profit organisation providing customised commercial diplomacy services, UBA Group and UBA America share BCIU’s vision of actively pursuing strategic opportunities, contributing to global economic cooperation, deepening of economic diplomacy, facilitating ideas, forging partnerships, and adding value for all stakeholders.”.

“Our resolve to co-host this Networking Reception symbolises our dedication to fostering inclusive economic growth and partnership across borders. By leveraging platforms like this, we can collectively address shared challenges and seize opportunities for sustainable development,” he stated further.

BCIU is a non-profit Association comprising of policy experts, strategic advisors, and trade educators, and offers bespoke commercial diplomacy services to the world’s governments and leading organisations, from Fortune 100 companies to global investors and multilateral institutions.

Only last year, the CEO UBA America, Sola Yomi-Ajayi, was appointed to the Board of BCIU, where she collaborates with fellow board members to ensure the organisation operates in alignment with its by-laws and New York 501(c)3 non-profit legislation.

Yomi-Ajayi has been committed to nurturing long-term organisational growth and sustainability, thereby reinforcing the bond between UBA America, BCIU, and the broader international community.

UBA America is the United States subsidiary of United Bank for Africa (UBA) Plc, one of Africa’s leading financial institutions with presence in 20 African countries, as well as in the United Kingdom, France, and the United Arab Emirates. UBA America serves as a vital link between Africa and the global financial markets, offering a range of banking services tailored to meet the needs of individuals, businesses, and institutions.

As the only sub-Saharan African bank with an operational banking license in the U.S., UBA America is uniquely positioned to provide corporate banking services to North American institutions doing business with or in Africa.

UBA America delivers treasury, trade finance, and correspondent banking solutions to sovereign and central banks, financial institutions, SMEs, foundations, and multilateral and development organizations. Leveraging its knowledge, capacity, and unique position as part of an international banking group, the Bank seeks to provide exceptional value to our customers around the world.

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According to the CBN directive to banks, the use of foreign currency-denominated collaterals for Naira loans is now prohibited, except in cases where the collateral is in the form of Eurobonds issued by the Federal Government of Nigeria or guarantees provided by foreign banks, including Standby Letters of Credit.

In a statement on the apex bank policy and impact on the forex market, the Gwadabe described the move as a welcome development, expected to put the excesses of big businesses and manufacturers putting unnecessary pressure on the forex market  on check.

He said: “ABCON members are bewildered that some companies and manufacturers with billions of dollar balances in their non-oil export domiciliary accounts as collateral for naira loans and still source forex in the official window thereby depleting what is available for other operators”.

“The stoppage of this unprofitable practice will not only add to the dollar liquidity in the market but also help in the accretion of foreign reserves buffers,” he added.

Gwadabe advised the apex bank to  the review foreign currency holding guidelines for non-oil export domiciliary accounts proceeds and entrench maximum of 48 hours holding positions as practiced in South Africa.

ABCON chief further advised the CBN not to approve forex requests by manufacturers and other business applicants with billions of dollars holdings in Non export oil proceeds domiciliary accounts at both the NAFEM and NAFEX window.

ABCON boss explained that unfortunately,  the BDCS are most times seen as crude but remains an effective market control mechanism with the potent transmission mechanism tool in achieving the CBN’s mandate of price stability and liquidity in the markets.

“We therefore urge the CBN to continue to drive and expand its operations to ensure that the best results now achieved in the last 15 years, also ensured exchange rate convergence, market calmness and confidence of the public and foreign investors,” he said.

ABCON leadership he added, has also called for and advocated for the separation of ownership and operational structures of FMDQ Exchange. The move, he said would ensure more transparency and effectiveness in market operations and price control mechanisms.

Furthermore, ABCON boss urged the CBN to allow legislative decisions on the planned reforms in the BDCs sub-sector to boost foreign investors’ confidence and guarantees in the sectoral transformation.

“We also want to pledged our continuing support to the CBN proactive and effective policies and meant to address volatility and headwinds in the forex market. As a self regulatory body, ABCON is currently engaging all stakeholders and players in the retail  end market to deepen, liberalize, democratize and centralize the retail end segments of the market for price discovery, market efficiency, transparency, accretion of buffers and healthy balance of payments,” Gwadabe said.

“We applaud the CBN management for the reconsideration and reinstatement of the BDC sub-sector as third leg of the forex market to put hoarding and speculation under check and we have seen faster results than expected,” he stated.

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A circular to all authorised dealers, signed by CBN Director, Trade and Exchange Department, Dr.  W.J Kanya slashed the dollar selling rate to BDCs to 1,101 to dollar. The BDCs are to sell at 1.5 per cent margin above the purchase rate.

Kanya said each of the eligible 1,588 BDCs will access $10,000 each BDC at N1,101 to dollar.

The previous dollar purchase rate for BDCs was at N1,251/$ and was far above the N1,240/$ naira closed last week.

The Association of Bureaux De Change Operators of Nigeria (ABCON) the umbrella body of all Central Bank of Nigeria (CBN)-Licensed Bureaux De Change (BDCs) had at the weekend, appealed to the Apex Bank to adjust and lower its applicable Exchange Rate downward below the N1,251/$ its pegged for the BDCs.

National President, Alhaji (Dr.) Aminu Gwadabe, insisted that naira’s speedy recovery, which was faster than expected had made CBN’s selling rate to BDCs very expensive and difficult to offload to retail end buyers that are trooping to the undocumented forex operators for cheaper rates and avoiding the BDCs services

He insisted that with naira appreciating across markets, many BDCs who bought dollar at N1,251/$ will lose significant income and capital if they sale at the current open  market rate of N1,235/$ and therefore the  need for the call for a further review downward of the applicable exchange rate for the period and subsequently to continue to enhance naira sovereignty.

“We discovered a worrisome development where many of our members who paid for dollar allocations at N1,251/$ with a margin of 1.5% are yet to receive their disbursement. This is happening in the face of prevailing open market rate of N1,235/$ which is lower than the authorised applicable exchange rate by the CBN to the BDCs,” Gwadabe said.

Kanya wrote: “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1101/$1. The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.

“All eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from Today Monday April 08, 2024, and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN Branches’.

“All BDCs are strongly advised to continue to abide by the rules and conditions as stipulated in our earlier letters/circulars.”

The current selling rate to BDCs is expected to further crash the naira at both official and parallel markets.

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The event, which convened Corporates, Financial Institutions and Sovereigns, served as a platform to explore the opportunities and challenges within the Payables Finance Industry in Africa’s biggest economy.

The workshop was well attended by industry stakeholders, among them the key guests – Mrs. Folasade Ambrose-Medebem, Honorable Commissioner for Trade and Investment in Lagos and Mr. Abayomi Arogundade representing Dr. Olayemi Cardoso, The Governor of the Central Bank of Nigeria. The workshop was followed by a joint launch of the innovative Payables Finance product, branded as ‘Afreximbank Tradelink’ in partnership with Sterling Bank.

The introduction of Payables Finance is the next stage on Afreximbank’s roadmap to promote Supply Chain Financing in Africa. The Bank currently provides US Dollar and Euro financing across Africa and plans similar partnerships in other African countries while incorporating local currencies.

The workshop provided a platform for corporates and banks to gain insights into the benefits and applications of supply chain finance and factoring. Through informative sessions and interactive discussions, participants had the opportunity to explore practical strategies for leveraging these financial solutions to optimize working capital management and drive business growth.

The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, represented by Mr. Abayomi Arogundade, Deputy Director of the Other Financial Institutions, Supervision Department highlighted the significance of the workshop, he emphasized the ongoing collaboration, particularly in establishing regulatory frameworks for factoring. Both institutions are committed to exploring regulatory measures to support the development of supply chain finance.

Mrs. Mojisola Hunponu-Wusu, founder of Woodhall Capital, asserted to the Central Bank of Nigeria, the unwavering support of financial institutions towards the receivables financial industry, underscoring its growing visibility.

“We are thrilled by the overwhelming response to the workshop,” said Adegboyega Festus, Chief Executive Officer at Woodhall Capital. “The presence of esteemed guests from Lagos State and The Central Bank of Nigeria, such as Mrs. Folasade Ambrose-Medebem, further highlights the importance of collaboration in advancing the payables finance industry in Nigeria. We believe that by equipping businesses and financial institutions with the knowledge and tools they need to navigate the complexities of supply chain finance and factoring, we can contribute to the sustainable development and growth of the African economy. “

Participants engaged in insightful discussions, sharing expertise and strategies to navigate the evolving landscape of Supply Chain Finance. From identifying innovative financing solutions to addressing regulatory considerations, the workshop provided valuable insights for attendees to enhance their operations and seize new opportunities in the marketplace.

Woodhall Capital is a leading financial advisory firm that has raised over $5b from various funding sources across the globe. The funds have been raised to support local financial institutions, multinationals and conglomerates operating in various economic sectors in Nigeria and across Africa. Afreximbank has been a pioneer in providing lines of credit to support and promote factoring across the continent through its Factoring Working Group.

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The enhanced Mobile App for businesses provides a comprehensive set of tools to manage finances efficiently. With an in-built interface, users can execute transactions effortlessly, transfer funds between accounts, check real-time balances, and manage beneficiaries. The App offers instant access to transaction statements, self-service options, and robust security features to safeguard business operations.

The Chief Executive of the Bank, Wole Adeniyi, while endorsing the App, said, “We are thrilled to introduce the enhanced Stanbic IBTC Mobile App tailored specifically for our business clients. Our goal is to provide businesses with a seamless and efficient platform to conduct their banking activities, including transactions, statement requests, transfers, and more, all from the convenience of their mobile devices”.

The optimised Mobile App reflects Stanbic IBTC Bank’s commitment to innovation and digitisation in supporting businesses in Nigeria. The Bank aims to empower companies to reach their goals and achieve success by offering tailored solutions and enhanced features.

Adeniyi added: “This App enhancement is a significant step in ongoing efforts to simplify our banking processes and enhance customer experience through technology. With robust security measures and a user-friendly interface, our business clients can now manage their finances more efficiently and confidently”.

According to the Chief Executive Stanbic IBTC Bank’s Mobile App optimisation for business clients showcases the Bank’s dedication to innovation and customer-centric solutions and positions it as a trusted financial partner for businesses, supporting their growth and success in Nigeria’s dynamic business landscape.

Adeniyi explained that the Enterprise Online is an Internet Banking platform designed exclusively for businesses to manage their accounts and monitor cash flow adding it offers features like payroll management, bulk payments, and self-service options.

According to him, you can access Enterprise Online through the website by simply selecting Enterrpise Online and log in using your business account and credentials.

“The Enterprise Online offers exciting features like payroll management, single and bulk payments, real-time balance check, self-service options and much more”, he further explained adding you can efficiently manage your finances from anywhere at any time.

Enterprise Online is secure, we use advanced encryption and authentication methods to protect your business data. Bulk payments allow you to make multiple payments at once. You can upload and process a file with payment details in a single transaction”.

He said that the Stanbic IBTC Mobile App for business is an updated version of the mobile banking application specifically designed for business clients. It focuses on accessibility, efficiency, and security.

According to him, the optimised Mobile App provides real-time account balances, beneficiary management, fund transfers, transaction statement reviews and much more. It offers a comprehensive suite of tools for business owners. You can download the Stanbic IBTC mobile App from the App store (iOS or Android) and log in using your Enterprise Online credentials.

He said that the App is fortified with solid security features to protect your transactions from unauthorised access, fraud, and cyber threats. The app allows seamless fund transfers between your business accounts, navigate to the transaction history section within the App to review your transaction statements, Adeniyi disclosed.

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The World Bank’s latest Africa’s Pulse report said increased private consumption and declining inflation are supporting an economic rebound in Sub-Saharan Africa.

“However, the recovery remains fragile due to uncertain global economic conditions, growing debt service obligations, frequent natural disasters, and escalating conflict and violence,” it said.

Africa’s Pulse calls for several policy actions to foster stronger and more equitable growth. These include restoring macro-economic stability, promoting inter-generational mobility, supporting market access, and ensuring that fiscal policies do not overburden the poor.

Transformative policies are needed to address deep-rooted inequality to sustain long-term growth and effectively reduce poverty.

However, this recovery remains tenuous. While inflation is cooling across most economies, falling from a median of 7.1 to 5.1 percent in 2024, it remains high compared to pre-COVID-19 pandemic levels. Additionally, while growth of public debt is slowing, more than half of African governments grapple with external liquidity problems, and face unsustainable debt burdens.

Overall, the report underscores that despite the projected boost in growth, the pace of economic expansion in the region remains below the growth rate of the previous decade (2000-2014) and is insufficient to have a significant effect on poverty reduction. Moreover, due to multiple factors including structural inequality, economic growth reduces poverty in Sub-Saharan Africa less than in other regions.

World Bank Chief Economist for Africa, Andrew Dabalen “Per capita GDP growth of 1 percent is associated with a reduction in the extreme poverty rate of only about 1 per cent in the region, compared to 2.5 per cent on average in the rest of the world. In a context of constrained government budgets, faster poverty reduction will not be achieved through fiscal policy alone. It needs to be supported by policies that expand the productive capacity of the private sector to create more and better jobs for all segments of society.”

“Inequality in Africa is largely due to the circumstances in which a child is born and accentuated later in life by obstacles to participating productively in markets and regressive fiscal policies,” said Gabriela Inchauste co-author of a forthcoming World Bank report on tackling inequality in Sub-Saharan Africa. “Identifying and better addressing these structural constraints across the economy offers a road map for a more prosperous future.”

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The landmark transaction, commemorated at an event in Dubai, is a significant milestone in AFC’s unwavering commitment to develop critical infrastructure projects across the continent by enhancing its financial flexibility and diversifying its investor base.

Testament to AFC’s appeal in global capital markets and the Corporation’s pivotal role in fostering economic growth and industrialisation in Africa, leading international financial institutions including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank and Standard Chartered collectively acted as Global Coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho and Sumitomo Mitsui Banking Corporation acted as Initial Mandated Lead Arrangers and Bookrunners.  Additionally, Bank of China and Société Générale S.A acted as Initial Mandated Lead Arrangers.

Initially launched at US$1 billion, the three-year syndicated loan was upsized after being oversubscribed by 49%, underscoring global investor confidence in AFC’s track record, creditworthiness, and its ability to navigate the current economic landscape marked by evolving global complexities. Proceeds from the loan will be deployed to advance AFC’s mission to consistently deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s potential, leading to prosperity for all Africans.

“The global loan market’s overwhelming interest in Africa’s growth story is evident in the large pool of lenders that supported this syndication, making it AFC’s largest ever,” said AFC’s President & CEO, Samaila Zubairu. ‘’This is a significant endorsement of our commitment to ensure that infrastructure projects support local processing and value capture, thereby providing the much needed impetus to African industrialisation, enhanced export earnings and job creation.’’

AFC’s position as the pre-eminent partner of choice between African and global stakeholders and investors for mutually beneficial outcomes reflects the Corporation’s relentless dedication to shaping a brighter and prosperous tomorrow for Africa and Africans.

Financial institutions including Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg S.A. joined the syndicate as first-time lenders, showcasing AFC’s ability to build a global coalition of investors confident in the Corporation’s strong fundamentals as one of the highest investment-grade institutions in Africa.

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