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CBN wants to give you Loan

Creative Industry Funding Initiative.

 

 

It’s a new dawn for the creative industry as the Central Bank of Nigeria makes funds available for creative persons, who genuinely seek financing to grow their businesses under its Creative Industry Funding Initiative.

Just like it did to farmers under its Anchor Borrowers’ Program (ABP), where rice farmers got cheap capital to boost their production capacities, leading to Nigeria becoming one of the world’s largest producers of rice, the Central Bank of Nigeria, has launched a financing program for the creative industry in Africa’s largest economy to enhance productivity and wealth creation.

The Creative Industry

“Nigeria has the largest economy in sub-Saharan Africa and its fast-growing tech, film and fashion sectors have become a strong exporter of culture,” the British Council has said on its website.

Also, Nigeria’s culture and information minister Lai Mohammed said, “Our greatest strength lies in our creative industry, our music, and our films. That is one area we need to build on because that is one area we have a comparative advantage over many other countries.”

Nigeria’s creative industry is growing at an exponential rate with emerging talents in the fashion and film sector. But the chances of emerging from talents to creative entrepreneurs are quite slim due to the country’s harsh economic realities.

The country’s unemployment rate was at 23.1 per cent, from the previous rate of 18.8 per cent released in the third quarter of 2017, Nigeria’s National Bureau of Statistics said in December 2018.

Despite these challenges and even more, Nigeria’s creative industry is tipped to hold the key to reducing the growing unemployment rate and contribute to the nation’s economy. While the challenges are real, the opportunities in the creative industry remain limitless.

Operators in the industry might as well heave a sigh of relief as the CBN has taken it upon itself to make funds available to creative entrepreneurs to finance their dreams and grow their businesses and this loan is up to the sum of N500m.

Intervention

The central bank, in collaboration with the Bankers’ Committee, as part of efforts to boost job creation in Nigeria, particularly among the youth, has developed a Creative Industry Finance Initiative (CIFI).

A circular recently published by the CBN disclosed that four key areas in the creative industry are targeted for financing under the scheme. They are fashion, information technology, movie production and music distribution. Software Engineering students can also access loan from the scheme for use in their creative ventures.

According to CBN, prospective beneficiaries are only required to prepare their business plan or statement on how much they want for their business and approach their bank for the facility.

“You can get a loan of up to N3 million as a Software Engineering Student, N30 million for Movie Production business, N500 million for Movie Distribution business,” the CBN announced.

The facility covers rental/service fees for Fashion and Information Technology business and training fees, equipment fees, and rental/service fees for Music business.

The CBN added: “Go to any bank of your choice to access the fund. Tell your bank how much you need. Your bank will discuss your request and provide you with the money.”

The maximum interest rate of nine percent per annum  (all charges inclusive) is applicable to all loans with a period for the repayment of the loan ranging from three to 10 years, depending on the segment of the business.

For software engineering student loan, it is a maximum of three years to repay a loan while it takes up to 10 years for people in movie production and distribution and also fashion, information technology and music.

CBN Requirements

Prepare your business plan or statement on how much you want
for your business.

Impact

The creative industry in Nigeria is believed to have the potential to turnaround the economy, if given the right attention as the CBN and the banks are about to do under the CIFI scheme.

Although there are no precise data on the size of the Nigerian fashion market, the apparel and footwear market in sub-Saharan Africa is estimated to be worth $31 billion with the global apparel market valued at $3 trillion.

As of 2014, the film industry was worth N853.9 billion (about $5.1 billion) making it the third most valuable film industry in the world, behind the United States and India. It contributed about 1.4 per cent to Nigeria’s economy- this was attributed to the increase in the number of quality films produced and more formal distribution methods.

How we can help you?

COINBOX LIMITED is a Management consultancy firm which commenced business in 2012 and has successfully managed many projects, alongside establishing business systems that has revived dying businesses and optimised existing ones, we have also written business plans and proposals for new or existing businesses enabling them access grants and loans locally and internationally. 

We at COINBOX are experts in writing bespoke business plans and we want to help you. Our rates are pocket friendly.

Benefits of Writing a Business Plan

A well-written business plan helps business owners get their businesses off the ground and then grow.  A business plan serves as a road map to profitability and a guide for structuring and operating the business.

Prospective investors and lenders want to know what they are getting themselves into. Just as you would want to know the specifics of a mutual fund or stock portfolio before you put down money, your investors and creditors want to know if funding your business is a sound idea.

Your bankers want to know what you will do with the money you are requesting for and see clearly how you will pay back and still remain in business and the usual instrument is a well written business plan.

It is not so easy for early investors or lenders to measure a company’s performance. There isn’t adequate financial history available about new businesses, which means that you have to provide much more information about your vision and projected revenue to help them get a full view of what you’re doing or what the business is about. This is clearly defined in your business plan.

Business plans are valuable when trying to secure startup or expansion funding. Investors want to be confident that they will see a return on their investment. A business plan is a tool that can help you prove that your company is viable and poised for future growth.

 

 

Where we come in:

-We will help in writing  bankable business plans for you with financial projections of up to 3 years and more.

-We  will support you with the necessary advice required for accessing and managing the loan

ACTION

Reach out to us today: or fill your contact details below.

37A, Ramat Crescent, Ogudu GRA, Lagos.

+2349093929847

+2349083345156

 

coinboxlimited@gmail.com and bukola.oyedokun@coinboxlimited.com.ng

 

www.coinboxlimited.com

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top 10 personal money mistakes

Top of Form

Bottom of Form

 

Top 10 Most Common Financial Mistakes

 

Updated May 24, 2018

Here we’ll take a look at some of the most common financial mistakes that often lead people to major economic hardship. Even if you’re already facing financial difficulties, steering clear of these mistakes could be the key to survival.

Mistake No. 1: Excessive/Frivolous Spending

Great fortunes are often lost one dollar at a time. It may not seem like a big deal when you pick up that double-mocha cappuccino, stop for a pack of cigarettes, have dinner out or order that pay-per-view movie, but every little item adds up. Just $25 per week spent on dining out costs you $1,300 per year, which could go toward an extra mortgage payment or a number of extra car payments. If you’re enduring financial hardship, avoiding this mistake really matters – after all, if you’re only a few dollars away from foreclosure or bankruptcy, every dollar will count more than ever. (For more insight, see 15 Simple Tips to Save Money.)

Mistake No. 2: Never-Ending Payments

Ask yourself if you really need items that keep you paying every month, year after year. Things like cable television, music services or fancy gym memberships can force you to pay unceasingly but leave you owning nothing. When money is tight, or you just want to save more, creating a leaner lifestyle can go a long way to fattening your savings and cushioning yourself from financial hardship. (For more on this, see Bloated Budget? How to Trim the Fat.)

Mistake No. 3: Living on Borrowed Money

Using credit cards to buy essentials has become somewhat normal. But even if an ever-increasing number of consumers are willing to pay double-digit interest rates on gasoline, groceries and a host of other items that are gone long before the bill is paid in full, don’t be one of them. Credit card interest rates make the price of the charged items a great deal more expensive. Depending on credit also makes it more likely that you’ll spend more than you earn. (See also: Credit, Debit and Charge: Sizing Up the Cards in Your Wallet.)

Mistake No. 4: Buying a New Car

Millions of new cars are sold each year, although few buyers can afford to pay for them in cash. However, the inability to pay cash for a new car means an inability to afford the car. After all, being able to afford the payment is not the same as being able to afford the car. Furthermore, by borrowing money to buy a car, the consumer pays interest on a depreciating asset, which amplifies the difference between the value of the car and the price paid for it. Worse yet, many people trade in their cars every two or three years, and lose money on every trade.

Sometimes a person has no choice but to take out a loan to buy a car, but how much does any consumer really need a large SUV? Such vehicles are expensive to buy, insure and fuel. Unless you tow a boat or trailer, or need an SUV to earn a living, is an eight-cylinder engine worth the extra cost of taking out a large loan?

If you need to buy a car and/or borrow money to do so, consider buying one that uses less gas and costs less to insure and maintain. Cars are expensive, and if you’re buying more car than you need, you’re burning through money that could have been saved or used to pay off debt.

Mistake No. 5: Spending Too Much on Your House

When it comes to buying a house, bigger is not necessarily better. Unless you have a large family, choosing a 6,000-square-foot home will only mean more expensive taxes, maintenance and utilities. Do you really want to put such a significant, long-term dent in your monthly budget? (For more, see Mortgages: How Much Can You Afford?)

Mistake No. 6: Treating Your Home Equity Like a Piggy Bank

Your home is your castle. Refinancing and taking cash out on it means giving away ownership to someone else. It also costs you thousands of dollars in interest and fees. Smart homeowners want to build equity, not make payments in perpetuity. In addition, you’ll end up paying way more for your home than it’s worth, which virtually ensures that you won’t come out on top when you decide to sell.

Mistake No. 7: Living Paycheck to Paycheck

In March 2018, the U.S. household personal savings rate was just 3.1%, according to Federal Reserve data. Many households are living paycheck to paycheck, and an unforeseen problem can easily become a disaster if you are not prepared. The cumulative result of overspending puts people into a precarious position – one in which they need every dime they earn and one missed paycheck would be disastrous. This is not the position you want to find yourself in when an economic recession hits. If this happens, you’ll have very few options.

Many financial planners will tell you to keep three months’ worth of expenses in an account where you can access it quickly. Loss of employment or changes in the economy could drain your savings and place you in a cycle of debt paying for debt. A three-month buffer could be the difference between keeping or losing your house.

Mistake No. 8: Not Investing

If you do not get your money working for you in the markets or through other income-producing investments, you cannot stop working – ever. Making monthly contributions to designated retirement accounts is essential for a comfortable retirement. Take advantage of tax-deferred retirement accounts and/or your employer-sponsored plan. Understand the time your investments will have to grow and how much risk you can tolerate. Consult a qualified financial advisor to match this with your goals if possible.

Mistake No. 9: Paying Off Debt With Savings

You may be thinking that if your debt is costing 19% and your retirement account is making 7%, swapping the retirement for the debt means you will be pocketing the difference. But it’s not that simple. In addition to losing the power of compounding, it’s very hard to pay back those retirement funds, and you could be hit with hefty fees. With the right mindset, borrowing from your retirement account can be a viable option, but even the most disciplined planners have a tough time placing money aside to rebuild these accounts. When the debt gets paid off, the urgency to pay it back usually goes away. It will be very tempting to continue spending at the same pace, which means you could go back into debt again. If you are going to pay off debt with savings, you have to live like you still have a debt to pay – to your retirement fund.

Mistake No. 10: Not Having a Plan

Your financial future depends on what is going on right now. People spend countless hours watching TV or scrolling through their social media feeds, but setting aside two hours a week for their finances is out of the question. You need to know where you are to know where you are going. Make spending some time planning your finances a priority.

The Bottom Line

To steer yourself away from the dangers of overspending, start by monitoring the little expenses that add up quickly, then move on to monitoring the big expenses. Think carefully before adding new debts to your list of payments, and keep in mind that being able to make a payment isn’t the same as being able to afford the purchase. Finally, make saving some of what you earn a monthly priority, along with spending time developing a sound financial plan.

Source: Investopedia

 

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TO WRITE OR NOT TO WRITE A BUSINESS PLAN

Much has been said about why you as an existing entrepreneur or a would be entrepreneur should not waste your precious time writing  a business plan, even much more has been said about how it is absolutely necessary to pen down your business plans in order to set you on a course among many other benefits.

Many authors have labeled the writing of business plan a complete waste of time, a Study in Babson College in the US revealed that in comparing some business success metrics, there were no statistical difference in success between those businesses that started with formal written plans and those without them. Do you really need a business plan?.

On the contrary, I will tell you about a conversation Alice in Wonderland had with a cat, Alice asked the cat which way she should go and the cat replied “that depends a good deal where you want to get to “and she replied “I don’t care much where and then the cat replied again” then it does not matter which way you go. I hope you can relate this story to someone who does not have a blueprint for her business; you are very much opened to chance. One thing is certain though, a great plan won’t make a lousy idea successful and a lousy plan won’t necessarily stop a great idea. In other words, it won’t hurt to write a business plan, even if at the end of the day it is not near reality, you must have had a good sense of direction and that is worth something. 5 reasons you need a business plan

I DON’T LIKE WRITING A BUSINESS PLAN

If you have ever disliked the idea of writing a business plan, pay attention, you are going to like this. There are a growing number of professionals that tend to agree that a better strategy is in exploring (Market research and real life experience) and fine tuning your assumptions and realities before spending lots of time writing a plan with financial projections based on mere dreams and passion that are subject to change. Say for example, someone has a dream to bake bridal cakes and wants to be an authority in that space, she spends a year or more trying to put her dreams into a plan on paper rather than trying to know who her real target audience are, what they want, what is trending, the knowledge that can only be gotten when she gets out there. The idea here is that entrepreneurs are advised to nimble, get hands on because if you don’t, there may be a tendency to stick to a flawed concept on paper because of the time and resources put into it, without allowing market realities direct the pace. is Business plan really necessary?

WHY YOU SHOULD WRITE THE BUSINESS PLAN

However, If you require funding from investors or institutions like World Bank, ignore everything you read in the previous paragraph, you need a business plan. If 80% of businesses in Africa complained that lack of funding is the number one business challenge and there are institutions that readily give out fund, join this school of thoughts and write a very good business plan. No investor or institution will dole out cash to you without going through a business plan that will serve as a window into the future of your business, an average investor wants to know why she should part with her cash and invest in your business rather than leave the money in the bank.

I don’t know about you but I like to always determine what my next line of action would be and a good business plan will help assess future opportunities and spell out the course of action to commit to after all other options have been marginalized to help the business align to just the important activities with milestone attached to each activity to help measure results. Ever heard of Sean Hackney? A guy who wrote a business plan to persuade a soft drink company to hire him, the plan was so good, he got an advice to start the business on his own and that company today is worth millions of dollars with the product being the number two energy drink in bars and nightclubs across America. Research has shown that writing a business plan increases the chance that you will go into the business. 5 reasons you need a business plan

WALK THE WALK AND TALK THE TALK

Entrepreneurs however are expected to walk the walk while talking the talk, it is always advisable to be flexible, don’t stay stuck just because the business plan says to go in a certain direction. That a business plan is necessary for your company is entirely up to you, My Job has being to take you down both roads, and whether the plan will further help the performance of the business is also entirely up to you too. Accountability, planning, viability and communication are necessary business plan tools that can help you get funded and give you a sense of direction, they should never be ignored, it is also advisable to make changes where and when necessary as a business plan it not an end in itself.

 

PS : I have written business plans for clients that have helped them secure loans and grants from investors and recognized institutions, in cases of funding, you can never go wrong writing a great business plan.

 

 

 

How Not To Panic About Pricing

What Are Supply and Demand Curves?

Understanding Price and Quantity in the Marketplace

Imagine the scenario: you arrive at the market to stock up on fruit, but it’s been a bad year for apples, and supplies are low. The price has gone up, even since last week – but you accept the increase and snap them up anyway.

On the plus side, there’s been a bumper crop of pears. The growers are keen to sell as many as they can before their produce starts to rot, and they’ve slashed their prices accordingly. But you’re in no hurry – you know that if you come back at the end of the day they’ll be even cheaper.

For most of us, as consumers, these basic laws of supply and demand are so familiar, they’re almost second nature: plentiful goods are cheap; scarce goods cost more. But in business, these concepts are used in a more nuanced way to examine how much of a product consumers might buy at different prices, and the quantity you should offer to the market to maximize your revenue.

In this article, we’ll explore the relationship between supply and demand using simple graphs and tables, to help you make better pricing and supply decisions.

The Law of Demand

Demand refers to how much of a product consumers are willing to purchase, at different price points, during a certain time period.

We all have limited resources, and we have to decide what we’re willing and able to buy. As an example, let’s look at a simple model of the demand for gasoline.

If the price of gas is $2.00 per liter, people may be willing and able to purchase 50 liters per week, on average. If the price drops to $1.75 per liter, they may buy 60 liters per week. At $1.50 per liter, they may buy 75 liters.

You can express this information in a table, or “schedule,” like this:

Buyer Demand per Consumer
Price per liter Quantity (liters)
demanded per week
$2.00 50
$1.75 60
$1.50 75
$1.25 95
$1.00 120

As the price of gas falls, the demand increases – people may choose to make more nonessential journeys in their leisure time, for example, or just top up their tanks if they anticipate an imminent price increase. But price is an obstacle to purchasing, so if the price rises again, less will be demanded.

In other words, there is an “inverse” relationship between price and quantity demanded. This means that when you plot the schedule on a graph, you get a downward-sloping demand curve.

The Law of Supply

While demand explains the consumer side of purchasing decisions, supply relates to the seller’s desire to make a profit. A supply schedule shows the amount of product that a supplier is willing and able to offer to the market, at specific price points, during a certain time period.

Note:

Supply variations occur because production costs tend to vary by supplier. When the price is low, only producers with low costs can make a profit, so only they produce. When the price is high, even producers with high costs can make a profit, so everyone produces.

In our example, the schedule below shows that gas suppliers are willing to provide 50 liters per consumer per week at the low price of $1.20 per liter. But, if consumers will pay $2.15 per liter, suppliers will provide 120 liters per week. (Remember, we’ve assumed a simple economy in which gas companies sell directly to consumers.)

Gas Supply per Consumer
Price per liter Quantity (liters)
supplied per week
$1.20 50
$1.30 60
$1.50 75
$1.75 95
$2.15 120

As the price rises, the quantity supplied rises, too. As the price falls, so does supply.

Using Supply and Demand to Set Price and Quantity

So, if suppliers want to sell at high prices, and consumers want to buy at low prices, how do you set the price you charge for your product or service? And how do you know how much of it to make available?

Let’s go back to our gas example. If oil companies try to sell their gas at $2.15 per liter, would it sell well? Probably not. If they lower the price to $1.20 per liter, they’ll sell more as consumers will be happy. But will they make enough profit? And will there be enough supply to meet the higher demand by consumers? No, and no again.

To determine the price and quantity of goods in the market, we need to find the price point where consumer demand equals the amount that suppliers are willing to supply. This is called the market “equilibrium.” The central idea of a free market is that prices and quantities tend to move naturally toward equilibrium, and this keeps the market stable.

Equilibrium: Where Supply Meets Demand

Equilibrium is the point where demand for a product equals the quantity supplied. This means that there’s no surplus and no shortage of goods.

A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand. This enables them to raise the price.

A surplus occurs when the price is too high, and demand decreases, even though the supply is available. Consumers may start to use less of the product, or purchase substitute products. To eliminate the surplus, suppliers reduce their prices and consumers start buying again.

 

Price Elasticity

When you consider what price to set for your product or service, it’s important to remember that not all products behave in the same way. The extent to which the demand for your product is affected by the price you set is known as “price elasticity of demand.”

Inelastic products tend to be those that people always want to buy, but generally only in a fixed quantity. Electricity is an example of an inelastic product: if power companies lower the price of electricity, consumers probably won’t use a lot more power in their homes, because they don’t need more than they already use. But, if electricity prices rise, demand is unlikely to fall significantly, because people still need power.

However, demand for inessential or luxury goods, such as restaurant meals, is highly elastic – consumers quickly choose to stop going to restaurants if prices go up.

So, if demand for the products or services that your company offers is elastic, you may want to consider methods other than raising prices to increase your revenue – such as economies of sales or improving production efficiency, for example.

 

BOI N2BILLION GRADUATE ENTREPRENEURSHIP FUND (GEF)

 

Background

 

The Graduate Entrepreneurship Fund (GEF) scheme is the Bank’s first youth program which was launched in October, 2015 and is implemented by the Bank in partnership with the National Youth Service Corps (NYSC) Directorate. This initiative is specifically targeted at youths undergoing the mandatory one (1) year national service program.

The aim is to change the job-seeking mindset of Nigerian youths to entrepreneurship and self-reliance by encouraging them to develop skills for self-employment and to contribute to the accelerated growth of the national economy.

Hence the introduction of the Graduate Entrepreneurship Fund program to address the worrisome phenomenon of unemployment and restiveness.

Objectives

The Graduate Entrepreneurship Fund (GEF) is a product with the following objectives:

 

  • To encourage graduates of tertiary institutions currently undergoing the compulsory one-year NYSC program, to venture into business and become employers of labour rather than job-seekers.

 

  • To address the entrepreneurship capacity gap of the young NYSC members.

 

  • To deepen financial inclusion by de-risking the NYSC members and making them eligible for small business loans to be provided by BOI.

 

  • Ensure sustainability of the business of the young graduates through effective monitoring of the corps members by the NYSC Directorate and BOI.

 

Components of the GEF Program

The GEF Program comprises the following:

 

  1. Capacity building Process through the following:
    1. Selection/screening of the NYSC members that will participate in the capacity building process through questionnaire to be administered on BOI online portal.
    2. 4 days intensive training on generating a business idea (value proposition), how to run a profitable business (Business Model) and basic financial record keeping. This will be done in collaboration with the NYSC Directorate and shall be facilitated by BOI’s partner Entrepreneurship Development Centers/Institutions in the 36 states of the federation, including the Federal Capital Territory (FCT).
  2. Financial support for those with bankable business ideas within BOI’s SME clusters.

Related: https://emakhiomheayo.wordpress.com/2018/01/17/boi-graduate-entrepreneurship-fund/

 

RATIONALE The scheme is a special fund to encourage young Nigerian graduates of tertiary institutions who are currently serving under the NYSC program to start up new businesses as well as expansion of existing ones.
TARGET MARKET/ CRITERIA This product will be available to serving NYSC members that have successfully passed through the following stages:

i.  Screening process

ii.  Attended the capacity building program developed specifically for the prospects under GEF

iii.  Submitted a bankable business plans in respect of any of the Bank’s identified 40 SME clusters listed in Appendix I. (Any subsequent addition to the Bank’s identified cluster shall also be included)

PROJECTED IMPACT The fund shall be deployed to support the establishment and/or expansion of an estimated 1,000 enterprises promoted by NYSC members across the country. The scheme is expected to create a minimum of 5,000 direct jobs and 25,000 indirect jobs annually, totaling 30,000 jobs.
PROGRAM LIMIT N2.0 billion in the first year.
OBLIGOR LIMIT Up to N2 million

 

PRICING Interest Rate: Nill (0%), effective from 1st May, 2017.

 

TENOR 3 – 5 years.
MORATORIUM Six months from date of Loan Disbursement.
SECURITY Security for the facility will be combination of:

1.                   Specific charge over the equipment (present and future).

2.                   Lien on the NYSC discharge certificate

3.                   Undertaking by the NYSC Directorate not to release the discharge certificate until the loan is liquidated.

4.                   One (1) external guarantor acceptable to BOI who must belong to any of the following categories:

  1. Senior Civil Servant (Level 7 and above).

 

  1. Bankers (not below the level of banking Officer) and must have been confirmed by current employer.

 

  1. Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

 

  1. Senior Staff of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers).

 

e.    Elected public servants/administrators.

 

f.     Reputable entrepreneurs with on-going entities and registered business names.

 

g.   Clergy men.

 

The guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.

FUNDING STRUCTURE  

Purchase of assets for business: Machinery and equipment.

 

Up to 100% of the investment need and or
Working Capital: purchase of raw materials, operational cost, leases/ rentals of premises, renovation, insurance of assets and utility bill (for first three months of operation). Up to 50% of the working capital need.
 

DISBURSEMENT

Term Loan:

50% advance payment to equipment suppliers and payment of the balance only after satisfactory delivery and installation of the equipment. RMD to issue a letter of undertaking for the payment of the balance. However, full cash payment can be made in advance where items of equipment are to be bought from the likes of Cash n Carry, Shoprite, Jumia etc.

Working Capital:

50% of loan amount, to be disbursed after successful installation and testing of the equipment.

APPLY HERE http://www.boi.ng/graduate-entrepreneurship-fund/

 

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CBN to Draft Framework on Credit to SMEs

CBN to Draft Framework on Credit to SMEs

The Central Bank of Nigeria (CBN) has disclosed plans to draft a framework on credit to Small and Medium Enterprises (SMEs) aimed at improving credit to the sector. This was disclosed by the Governor, Mr. Godwin Emefiele, at a strategy meeting with selected Development Finance Institutions (DFIs) and other stakeholders, on enhancing access to credit to SMEs in the country.

related: https://www.cbn.gov.ng/FeaturedArticles/2017/articles/CBN_creditSME.asp

According to him, the efforts would see more of government intervention in the sector, which many believe would result in job creation for the teeming youths in the country.

 

Emefiele noted that the meeting with the DFIs was a result of the failure of lenders to make access to credit a priority. He expressed government’s concern that the citizens were yet to feel the impact of the country’s exit from recession, which he attributed to lack of appreciable growth.

 

Speaking further, he disclosed that President Muhammadu Buhari had mandated agencies to come up with programmes that would have Nigeria and Nigerians at heart. The programme, according to him, would be one that would permeate the country in terms of granting access to credit to the rising number of SMEs.

 

In spite of all effort by the Bank to improve certain parameters of the economy, he said lenders had failed Nigerians. Speakers at the strategy session were unequivocal in their attempt to find solution to the failure of the commercial banks to rescue the situation. The representative of the only commercial bank at the meeting, First Bank of Nigeria, said that everything boiled down to the huge risk involved in giving credit to SMEs.

 

An Abuja based manufacturer narrated how a commercial bank turned down his request for a loan of N160 million on the account of his N200-million factory that was located in Kubwa, an outskirt of the Abuja metropolis. Rounding off the discussion, Emefiele observed that the nation needed to strengthen the Bank of Industry (BoI) in order to make it compete favourably with the DMBs.

 

A technical committee comprising the BoI, Development Bank of Nigeria (DBN), selected DFIs, Bank of Agriculture (BOA), Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), to be chaired by the Director, Development Finance Department (DFD), Dr. Mudashiru Olaitan, was constituted and asked to submit its recommendations to the larger meeting in one week.

 

Mr. Emefiele directed that the outcome of the committee’s work should form part of the theme of the annual Bankers’ Committee Retreat in Lagos, scheduled to hold between 8 and 9 December, 2017. Those who attended the meeting included the Special Adviser to the President on Economic Matters in the Vice President’s Office, Dr. Adeyemi Dipeolu; Managing Director, Development Bank of Nigeria, Mr. Tony Okpanachi; and Managing Director, Bank of Industry, Mr. Olukayode Pitan.

SOURCE: CBN (https://www.cbn.gov.ng/FeaturedArticles/2017/articles/CBN_creditSME.asp)

 

CBN injects $210m into the Nigerian economy

CBN injects $210m Into Forex Market as Naira steady 360/$

As the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) commenced its last meeting for 2017, the Bank on Monday, November 20, 2017, intervened in the inter-bank Foreign Exchange Market to the tune of $210,000,000.

Figures obtained from the Bank reveal that the interventions were in the Wholesale, Small and Medium Enterprises (SMEs) and invisibles windows.

Confirming the figures, the Acting Director, Corporate Communications at the CBN, Mr. Isaac Okorafor said the Bank offered the total sum of $100million to the wholesale segment, while the SMEs segment received the sum of $55 million. He said the invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, also received an allocation of $55 million.

According to him, the releases were aimed at boosting liquidity, trade and ease of remittances for legitimate personal commitments.

Okorafor said the Bank was quite pleased with the rate of N360/$1, noting that the continued intervention by the CBN in the inter-bank forex market had largely checked unwholesome activities of currency speculators. He, however, stressed that the CBN would not relent in its monitoring of the market in order to ensure that authorised dealers abide by the extant rules.

It will be recalled that the CBN in its last intervention outing, intervened in the inter-bank Foreign Exchange Market with the total sum of $195,000,000.

Meanwhile, the naira maintained its steady rate against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Monday, November 20, 2017.

Source : Naija24/7 news

http://naija247news.com/2017/11/21/cbn-injects-210m-into-forex-market-as-naira-steady-360/?utm_source=dlvr.it&utm_medium=twitter

 

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Entrepreneur Elevator Pitch Ep. 7: More Secure Connections

This week’s episode is on Entrepreneur and is recently on-going

On this week’s episode of Entrepreneur Elevator Pitch, contestants present new ways to buy, sell and connect online — and get around in the real world.

While many people aspire to make the world a better place, not everyone knows how to go about it. That’s where entrepreneurs step in: people with big ideas who aren’t afraid to make their dreams a reality. Entrepreneurs on the new pitch show Entrepreneur Elevator Pitch have 60 seconds to convince investors that their product or business can improve the lives of others. From there, the judges decide whether they want to hear more, and they either open the Entrepreneur Elevator doors to the boardroom or send the contestant back to the lobby.

So many experiences and transactions today occur online, and users are becoming accustomed to trusting strangers thanks to the rise of the sharing economy. This is a common theme on this week’s episode of Entrepreneur Elevator Pitch, in which young innovators share new ideas about how to bolster virtual interactions, from a secondhand clothing marketplace to an app that connects lawyers and clients. Watch the episode above and see which entrepreneurs walk away with a deal. Then, be sure to support your favorite on Indiegogo if you think it’s the next million-dollar idea.