FX Policy: LCCI Tasks CBN On Creative Financing Options

The Lagos Chamber of Commerce and Industry (LCCI) have urged the CBN to adopt creative financing options for clearing the short to medium-term backlog of foreign exchange. LCCI noted that the new FX policy of the CBN unbanning the 43 items that were excluded from accessing FX at the official market is a market-friendly step towards unifying the exchange rates and is expected to curtail inflationary pressures in the short term. The body also said the policy change was expected to reduce the demand pressure on the parallel market and ensure there is a gradual convergence in FX market rates. The President/Chairman of Council, LCCI, Asiwaju Michael Olawale-Cole, said this in a statement at the weekend, adding that the policy would promote orderliness and professional conduct by all market participants to ensure market forces determine exchange rates on a willing buyer- willing seller principle. “The Chamber recommends that the CBN adopt creative financing options for clearing the short to medium-term backlog and establish a mechanism to address forex unification under the current system. “The Chamber believes the authorities must pursue the right monetary policy reforms to improve the investment climate and boost investor confidence. We call on the CBN to ensure transparency and accountability in banks’ foreign exchange dealings at the Investors & Exporters window”. Recall that the CBN recently lifted the forex ban on 43 items and also promised to intervene in the FX market from “time to time”. The apex bank had in 2015 restricted the items from accessing FX from the I&E window, saying they were “not valid for foreign exchange and could be produced in the country. Items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others. But in a statement, the bank’s Director of Corporate Communications Isa AbdulMumin said the ban has been lifted. “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease,” the Thursday statement read. “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.” “The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal,” CBN added.

Meet Sunday Ekedayen: Delta State’s visionary Commissioner for Economic Planning

Mr. Sunday A. Ekedayen, a Chartered Accountant renowned for his astute administrative skills, currently serves as the Delta State Commissioner for Economic Planning. Holding an impressive academic background, Ekedayen is an alumnus of the University of Lagos, a versatile manager of both human and material resources, and a figure seamlessly integrated into various sectors. His journey began in the early 1990s when he entered the finance industry, swiftly ascending the ranks within one of the national Development Finance Institutions (DFIs). Fondly known as Sonny, his professional prowess and kindhearted nature endeared him to colleagues and management alike. His willingness to support others made him a cornerstone of the organizations he has served. A significant milestone in Ekedayen’s career came with the transformation of the Bank of Industry, arising from the amalgamation of Nigeria Industrial Development Bank (NIDB), Nigeria Bank for Commerce and Industry (NCI), and National Economic Reconstruction Fund (NERFUND). In this transformative phase, Sonny played a pivotal role in crafting operational protocols for the reimagined enterprise, now recognized as the Bank of Industry. Much like a versatile utility player, Sonny showcased his adaptability by maneuvering through various units of the newly formed bank, culminating in his leadership of the Internal Control and Audit (IC&A) Department. His departure from each role was met with a sense of loss, and his arrival at new posts was always celebrated, a testament to his impact. Now in his role as the Delta State Commissioner for Economic Planning, the stage is set for Ekedayen to exhibit his trademark proactive approach. His congenial nature and reputation for quick thinking position him as a dependable ally, primed to hit the ground running. Ekedayen’s ability to seamlessly transition between sectors and functions underscores his capacity as a well-rounded individual. As he continues to serve in his new role, Delta State can anticipate a future guided by his strategic economic insights and steadfast commitment to progress.

SEC, FMMSD seek to raise capital for non-oil sector

The Securities and Exchange Commission (SEC) and the Capital Market Community are to partner with the Federal Ministry of Mines and Steel Development and other stakeholders to promote the use of alternative means of raising capital such as Non-Interest products, tokenization of assets, as well as adopting technologies such as FinTech. This among others was contained in a communiqué issued at the end of a two-day workshop on financing the Nigerian solid minerals sector through the capital market and the critical role of the commodities exchanges. The workshop also emphasised the need for the FMMSD and Federal Ministry of Education to re-prioritize the focus on STEM education at basic, secondary and tertiary institutions.  According to the communiqué, “There is a need for the Capital Market Community to ensure that the market infrastructure that supports the bringing to market of mining ventures is in place, while also protecting investors.  “All stakeholders should be involved in promoting sustainable practices and ESG standards within the mining industry while the FMMSD is to ensure the availability of geoscience data, given that it is essential alongside relevant market data in enabling intermediaries and commodities exchanges to structure products for the mining industry.  The participants also agreed that the FMMSD should collaborate with SEC and other stakeholders to develop capacity in the industry and address the issue of interference in mining activities by the State Government, which is identified as a major challenge faced by mining companies, the FMMSD is to take concrete steps to resolve the conflict in State and Federal laws as well as overlapping oversight. Earlier in a keynote address, the Executive Commissioner Operations of the SEC, Mr. Dayo Obisan said the solid minerals sector possesses immense transformative potential for sustainable economic growth in Nigeria and holds immense potential to contribute significantly to national economic diversification and sustainable development goals.  “With over 44 minerals discovered across the Federation, the mining industry can play a vital role in diversifying our economy away from crude oil dependency. The FMMSD has embarked on various initiatives to increase the sector’s contribution to Nigeria’s GDP from 0.5% to approximately 3% by 2025. To address the financing challenges faced by the mining industry, the SEC Commissioner said stakeholders must recognize the crucial role of the capital market in providing much-needed funding for large-scale mining projects as the capital market offers a wide array of financial instruments and products, attracting long-term investments and diversified sources of funding.  He said by tapping into this market, mining companies can strengthen their financial position and promote transparency, accountability, and good corporate governance practices to attract both domestic and foreign investors, stimulating investment inflows and fostering growth in the sector. He stated that to address these challenges, some practical solutions may include, but not limited to; attracting strategic investors who have established mining operations can bring expertise, technology, resources, and access to international markets. Such partnerships can be in the form of equity capital or debt financing, allowing miners to benefit from immediate cash injections and technology support.