Business

Reactions Trail CBN’s Decision To Redesign Naira

Published

2 years ago

October 31, 2022

Stakeholders in the Nigerian economy, including the Civil Society advocacy group, have reacted to the plan by the Central Bank of Nigeria (CBN) to redesign the Naira.
They stated that the CBN’s plan to redesign 200, 500 and 1,000 naira notes is not an economic priority for the country as at the moment, considering the current challenges facing the economy.
A Public Affairs analyst, Mr Tomkiri Bestman, in reaction to the plan, noted that it was targeted to mop-up exceess cash and fake currencies in the system.
Speaking in an interview at the Port Harcourt International Airport, Bestman noted that the redesigning of the naira was long over due, saying that it was over 20 years the last time naira was redesigned.
“This was supposed to be done every five years, but it has taken a longtime now. The implication is that so much cash will be withdrawn from circulation, and will be held up with the Central Bank, and many that have built dump in their homes where they kept billions of naira will not have it easy.
“I think this will affect the politicians more, especially those that have stolen our money. Don’t be surprised that very soon, you will be hearing how money is being dumped here and there, if the CBN will do their thorough job”, he said.
Meanwhile, the Executive Director, Civil Society Legislative Advocacy Center (CISLAC), Auwal Musa, said the redesigning of the naira is not the priority of Nigeria’s economy at the moment.
Musa, who disclosed this in a statement made available to The Tide, noted that there are more pressing needs that the CBN ought to attend to, to set the economy on the path of revival.
He stated that Nigerians’ reactions to the announcement was proof that the decision was a misplaced priority on the part of the CBN.
According to him, the CBN should be more concerned with protecting foreign exchange reserves from external outflows and making forex available to the ordinary citizens who genuinely and legitimately need it, adding that the huge blow to foreign direct investment was tantamount to the inability of the CBN to do its job effectively
”Firstly, the CBN’s decision to redesign and reissue new 200, 500 and 1000 notes is not an economic priority and barely a solution to addressing Nigeria’s poor monetary policy challenges and growing economic woes.
“Especially at a time when the country is grappling with huge fiscal deficits, a free fall of the naira, soaring inflation rates, multiple forex rates and rising borrowing costs.
“The reasons for this decision seem no different from those given for the forex demand management strategy which resulted in a non-satisfactory conclusion as the artificially low exchange rate failed to be as reflective of the market as possible to improve supply, but this time it only threatens damning economic consequences for Nigerians.
“The public perception that this decision holds no value proposition for the economy reiterates the tendency of the CBN to be distracted from fulfilling priority statutory obligations.
“Various comments and responses from concerned Nigerians show that a large number of Nigerians are worried about the misplacement of priorities of the apex bank to make such a decision that comes with possibly huge logistics costs and avoidable dislocations to small businesses, most of which are in the informal sector”, he stated.
The CISLAC boss also agreed that CBN’s macro-economic policies had brought nothing but ‘untold hardship’ on the country’s economy, consequently affecting Nigerians negatively.

By: Corlins Walter

Business

E-Commerce Platform Revolutionises Online Businesses, Empowers SMEs

Published

4 days ago

September 4, 2024

The Tide

A revolutionary online marketplace launched in December 2023, Naijamart.com, is shaking up the landscape for Nigerian businesses.
The multi-platform ecosystem is designed to empower businesses of all sizes and connect them with a wider audience at zero cost.
It offers diverse range of platforms on catering to specific business needs, and its product platform allows the buying and selling of a vast array of products, from electronics and fashion to home ware and groceries.
Naijamart Motors provides a dedicated space for seamless transactions, including buying, selling, or leasing a car, motorcycle, or any other vehicle, and also provides a dedicated space for seamless transactions.
According to the facilitators, Mr. Olalekan Emmanuel Odusanya and Mr. Moses Omhekono Owolabi, the platform was created to fill a significant void in the e-commerce industry, bridging the gap between vendors and buyers while providing enhanced security.
“Our vision is to create a platform where everyone benefits. We have meticulously designed the platform with an array of innovative tools and features to ensure that every user, regardless of their role, enjoys a seamless and rewarding experience.
“The platform is user-friendly, ensuring that even those with minimal technical skills can easily create and manage their online storefronts, and guarantees triple sales through its comprehensive support system and innovative features designed to maximise visibility and customer engagement.
“This multifaceted platform has also been the bedrock and backbone for many SMEs, providing support to the underserved and less privileged and grants to businesses”, Odusanya said.

Business

Analysts Fear Bank Recapitalisation May Worsen SMEs’ Funding

Published

4 days ago

September 4, 2024

The Tide

Analysts have said that the ongoing recapitalisation in the banking sector was pushing the industry towards greater consolidation, with significant implications for lending practices, especially for small and medium enterprises (SMEs).
They also noted that the Central Bank of Nigeria’s directive for banks to increase their capital base was not only reshaping the landscape by encouraging mergers among smaller banks, but also raising concerns about restricted access to credit.
According to the Head of Research at a financial market infrastructure group warehousing, FMDQ, Vincent Nwani, the recapitalisation was likely to lead to a wave of mergers and acquisitions, as smaller banks may find it difficult to meet the stringent capital requirements on their own.
“The recapitalisation will undoubtedly lead to further consolidation in the banking sector.
Smaller banks may struggle to meet the new requirements independently, prompting more mergers and acquisitions. This consolidation is likely to create a more competitive environment but may limit credit access for smaller enterprises,” Nwani explained.
Meanwhile, a Professor of Economics at Babcock University, Olusegun Ajibola, warned that while the recapitalisation might strengthen the overall banking sector, it could also result in tighter lending conditions, particularly for SMEs.
He noted that banks, in their effort to meet the new capital requirements, might prioritise capital accumulation over lending, which could temporarily reduce the availability of credit for SMEs.
“While the recapitalisation will strengthen the banking sector, the immediate effect will be a tightening of lending, particularly to small and medium-sized enterprises.
“Banks are focused on shoring up their capital, which could temporarily crowd out credit availability for SMEs, crucial to our economy,” the former president of the Chartered Institute of Banking of Nigeria noted.
The Tide’s source reports that the Association of Securities Dealing Houses of Nigeria(ASHON) has accused banks of bypassing licensed stockbrokers as receiving agents in the fresh recapitalisation exercise.
The Chairman of ASHON, Sam Onukwue, and its Secretary, Athan Ogbozor, stated that the association was empowering their staff members, including drivers and receptionists, to issue and receive share subscription forms.

Business

FCMB Moves To Empower Nigeria’s Female Tech Entrepreneurs

Published

4 days ago

September 4, 2024

The Tide

First City Monument Bank (FCMB) has launched a female friendly programme called “FCMB’s HERccelerate programme”, aimed at promoting startups’ growth, funding, mentorship, and training to help female founders.
FCMB’s Managing Director (MD), Yemisi Edun, who said this during the launch of the programme, said the initiative, which is driven by the Bank’s SheVentures and Hub One innovation hub, is executed in collaboration with 8th Gear Hub and Venture Studio.
The programme, according to the MD, seeks to equip female founders with the necessary skills, knowledge, and networks to secure funding and ensure sustainable growth.
She noted that applications for the programme, which targets women-led startups across various sectors, including Fintech, Agritech, Healthtech, Edtech, and E-commerce, offers them the chance to compete for funding and other strategic benefits and would be closing on September 30, 2024.
The MD said participants will undergo rigorous training, including office hours, site visits to successful local startups, and networking events with seasoned entrepreneurs.
“This robust support structure is designed to provide participants with access to knowledge, resources, investors, markets, and networks.
“The programme will culminate in a showcase event where winners will receive grant funding and gain exposure to potential investors.
“The bank is commited to fostering innovation and supporting women-led businesses, particularly SMEs in the tech sector.
“This initiative reaffirms our dedication to empowering women entrepreneurs to pursue their ambitions and make significant contributions to the tech ecosystem and Nigeria’s economic development.
“We understand the unique challenges faced by female-led tech ventures, from funding constraints to biases that hinder growth. HERccelerate is our platform to drive innovation and open more funding avenues for these businesses.
“We urge women entrepreneurs to take advantage of this opportunity to leave a lasting impact”, She said.
The Tide’s source reports that Nigeria’s tech sector has experienced notable growth in recent years, with women-led startups making significant inroads across various industries.