In a bid to improve the production and exports of cash crops in Nigeria, the Bankers Committee has earmarked a credit facility of N200 billion. The disclosure was made by the Managing Directors of UBA Plc and GTBank Plc, Kennedy Uzoka and Segun Agbaje respectively, during a press conference after a meeting.
The credit will be extended as loans to companies producing any of the selected five cash crops – Cocoa, Oil Palm, Shea Butter, Sesame Seed and Cashew – at single digit interest and for a tenor period of ten years.
“As you know we have always talked about Nigeria been a mono-economy, oil only, and many seminars have happened with so many resolutions. But the committee believes we have not made much progress in this direction hence that was the theme of the retreat,” Uzoka said.
The UBA chief also noted that several CBN funds and existing funding structures were considered to avoid reinventing the wheel and see which of the funds could address the current challenges. Consequently, the committee is applying the existing fund that was identified in CBN.
Speaking on what led to the decision to set up the fund, Director of Banking Supervision Department, Central Bank of Nigeria (CBN), Ahmed Abdullahi said that the Committee noted the stability in the economy and improved foreign investors confidence in the nation’s economy. Read more here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 5th of April, 2019. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 5th April 2019, showed that the All-Share Index depreciated by 4.59 percent from the previous week ending 29th March 2019. Market capitalization at the close of trading during the week under review was N11.469 trillion, a 4.69 percent decrease from N11.672 trillion recorded the previous week. The All Share-Index for the week under review closed at 29,616.38
Top five price gainers and decliners in the week under review:
Top five price gainers
Ikeja Hotel Plc.
Sovereign Trust Insurance Plc.
First Aluminium Nigeria Plc.
Berger Paints Plc
Top five price decliners
Union Diagnostic & Clinical Services Plc.
United Bank for Africa Plc.
Beta Glass Plc.
Neimeth International Pharmaceuticals Plc.
How did the Naira fare?
The Naira appreciated against the dollar slightly last week as it sat at N360 per dollar on the 5th of April 2019, a Naira less than the value it recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 5th of April 2019 at $70.52 per barrel, recording an increase from the $66.67 recorded a week earlier. Oil sanctions on Venezuela and Iran, as well as violence in Libya, have been responsible for the hike in global oil prices.