Business
Afreximbank Invested Over $42bn in African Enterprises in Five Years
By Derrick Bangura
Between 2016 and 2020, the African Export-Import Bank (Afreximbank) invested more than $42 billion in support of African businesses, according to the Nigerian Content Development and Monitoring Board (NCDMB).
Professor Benedict Oramah, President of Afreximbank, stated that the continental multilateral institution was currently the largest lender to the multi-billion dollar 650,000 barrels per day Dangote Refinery, which is currently under construction in Lagos’ Lekki Free Trade Zone.
They spoke at a forum with the theme, “Evolving a Pan-African Strategy Towards Sustainable Funding of Africa Oil and Gas Projects,” targeted at oil and gas practitioners especially member nations of the African Petroleum Producers Organisation (APPO).
Speaking yesterday at the maiden edition of the African Local Content Investment Forum (ALCIF) in Lagos, Executive Secretary of NCDMB, Mr. Simbi Wabote, described Afreximbank as one bright spot in the continent mandated to finance and promote intra and extra-African trade.
Wabote recalled that Afreximbank signed a $1.04 billion facility with the Nigerian National Petroleum Company (NNPC) Limited to finance the exploration of petroleum during the second intra-Africa trade fair which held in Durban, South Africa, few days after the completion of Climate Change Conference (COP-26) in Glasgow, Scotland.
He said, “In respect of African institutions, one bright spot is the African Export-Import Bank (Afrexim Bank), a pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade based in Cairo, Egypt.
“It is very instructive that Afreximbank signed a $1.04 billion facility with the NNPC Limited to finance the exploration of petroleum during the second intra-Africa trade fair which held in Durban, South Africa, few days after the completion of COP-26 event in Glasgow.
“For a bank that disbursed more than $42 billion between 2016 and 2020 in support of African enterprises, there is no doubt that Afreximbank is an institution of note in consideration of the quest for funding hydrocarbon development projects in Africa.”
The executive secretary said African Development Bank (AfDB) made similar financial support to African businesses in line with the bank’s objective to spur sustainable economic development and social progress in member countries thus contributing to poverty reduction.
According to Wabote, AfDB has the African Development Fund (ADF), which became operational in 1974 and has cumulatively invested $45 billion over its 44 years of operation on the African continent.
Noting that the fund had not been used much in the hydrocarbon sector, he said there was opportunity to engage AfDB to utilise part of the fund for gas development, which could be of interest to its largely Western donor countries against the backdrop of disruption in gas supplies in Europe.
At country level, according to Wabote, Nigeria represents a bright spot in the provision of funds that can be sourced for the execution of oil and gas projects. He explained that the funds included the Nigerian Content Intervention Fund (NCIF) and other funds that could be sourced from Development Financial Institutions (DFIs), like the Bank of Industry (BOI), Nigerian Export-Import Bank (NEXIM Bank) ,and other special funds managed by the Central Bank of Nigeria (CBN).
He cited the NCDMB partnered with BOI to establish the $300 million NCI Fund and the NCDMB partnership with NEXIM bank to create a$50-million fund for Working Capital and for Women in Energy.
In the area of research and development, Wabote said the NCDMB had sponsored the patent for some inventions, and had commenced the process of commercialising those inventions.
He also said a $50-million Research and Development (R&D) Fund was also launched to enable research and development in the oil and gas industry.
Beyond the provision of intervention funds as loans to industry players, he maintained that the board had also entered into partnerships with project promoters in the hydrocarbon sector.
In the aspect of modular refineries, the executive secretary noted that NCDMB was serving as a catalyst in the development of four modular refineries with the 5,000bpd Waltersmith Modular Refinery already in operation.
He pointed out that the Africa Finance Corporation (AFC), played a role in seeing the project to fruition, listing the other three modular refineries under construction as the 2,500bpd Duport Modular Refinery, 2,000bpd Atlantic Refinery and the 12,000bpd Azikel Modular Refinery.
Wabote explained that the essence of the event was for stakeholders to develop a robust response to the push for Africa to abandon her hydrocarbon resources.
The forum, he further explained, was to highlight some of the bright spots of the business, both at the national and continental levels to attract or deploy funding to the oil and gas industry, and propose some ideas to enhance continental collaboration and global support for fossil fuels.
He explained, “Already, some European banks are pulling out of hydrocarbons development projects and most International Operating Companies are shying away from investments in hydrocarbon projects to avoid backlash from green energy activists.
“This unfolding scenario is of huge concern to African leaders and policy makers in the oil and gas industry. It is, therefore, critical that we explore the necessary steps required to address this funding and investment challenge so that our hydrocarbon resources are not abandoned below the surface, like many African countries, including Nigeria, abandoned their coal mines.
“It is a bit of a comfort that some African countries have made some in-roads in securing funding and investment for the development of hydrocarbon projects with strategic partnerships with countries that have not turned themselves to oil and gas adversaries such as China and India.
“Other African countries are also doing their bit to develop infrastructure and processing plants for the hydrocarbon value chain but there is need to do more.
“One of such bright spots is the 650,000bpd Dangote Refinery which is now mechanically complete. This investment represents a major testament of the emerging crop of bold and audacious African businessmen positioning themselves and the continent on the map of the required energy mix for mankind.”
He reiterated that there was a genuine battle for the soul of the hydrocarbon industry in Africa, adding that Africans must all rally to save the industry or stand by while the continent perishes right in front of our eyes.
In his remarks, Oramah, who was represented at the forum by the bank’s Director/Global Head, Advisory and Capital Markets, Mr. Ibrahim Sagna, said Afreximbank had invested a total of $4 billion as of the third quarter (Q1) 2020 to support businesses in Nigeria.
He said by Q3 2021, the number of funds invested in the country passed $5 billion, adding that in the last four months, the bank has supported the NNPC Limited with $1 billion.
Oramah stated, “By the third quarter of 2020, our total investment is about $4 billion. By the third quarter of last year, the number has passed $5 billion. Over the last four months, we’ve given $1 billion for NNPC.
“We signed $5 billion agreement with NNPC. We signed an MOU of $5 billion with UTM Offshore. Also, the BOI which was mentioned, we provided over €700 million bond for them last week.
“In a bid to mobilise global financing to Africa, we have also lent some of the largest syndications in the sector. In fact, about the largest refinery in the world, which is the Dangote Refinery, we are today, the largest lender to that facility.”
In his keynote address, the Minister of State for Petroleum Resources, Chief Timipre Sylva, who was represented at the occasion by Permanent Secretary in the ministry, Mr. Nasir Gwarzo, said Africa must address funding, technology and other limitations in the oil and gas industry in order to attain energy security and in-continent value addition.
Sylva listed some of the limitations as, “dearth of funds to finance its oil and gas sector projects; limitations in technology mastery to manage the oil and gas industry; high-end skills gap; inadequate energy infrastructure to sustain oil and gas industry operations; undeveloped internal market for hydrocarbon derivatives and overdependence on sale of crude oil for foreign exchange and budget financing.”
He said Africa’s energy transition should be anchored on maximising fossil fuels (gas) utilisation and investment in renewable energy projects.
With over 600 million people living without access to modern energy, the minister said Africa’s energy demand in 2035 would be 40 per cent higher than it is today, compared to 10 per cent higher for global energy demand. The minister said this growth would be driven by industrialisation, population and expansion in economic activities.
Business
Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa
Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.
The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.
Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.
The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.
Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.
A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.
He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.
This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.
“We must invest in power because it is the biggest determining factor for industries to thrive.
“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.
“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.
Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.
He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.
A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.
Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.
He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.
“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.
Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.
Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.
He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.
“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.
“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.
Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.
He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.
Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.
“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.
While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.
In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.
This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.
“It empowered the state houses of assembly to enact laws on power.
“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.
“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.
According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.
“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.
“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.
Business
Mercedes urges delay of EU tariffs on Chinese electric vehicles
The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.
“We need more free trade instead of new trade barriers.
“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.
“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.
At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.
Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.
The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.
But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.
The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.
Business
ACCI moves to promote business connections, balance work-life
The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.
The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.
Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.
He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.
“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.
“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.
“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.
“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.
According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.
“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.
“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.
“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.
“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.
The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.
Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.
He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.
The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.
The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.
Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.
He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.
“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.
“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.
“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.
“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.
According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.
“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.
“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.
“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.
“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.
The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.
Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.
He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.
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