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Afreximbank: Professor Benedict Oramah Re-appointed President

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Shareholders of African Export-Import Bank (Afreximbank) have re-appointed Nigerian-born Prof. Benedict Oramah as President of the pan-African multilateral financial institution for a second five -year term.

The decision was announced in Cairo, Egypt at the bank’s 27th Annual General Meeting (AGM), which was held by the circulation of resolutions due to the Covid-19 pandemic.

In his acceptance statement released shortly thereafter, Oramah told the shareholders that the bank’s ultimate goal under his second term of office is the realisation of Africa’s strategic ambition to create an integrated market.
He said: “We want an Africa where the foundations of the African Continental Free Trade Agreement (AfCFTA) are laid expeditiously so that the 84,000 kilometres of borders that have divided us for ages can begin to come down.”

AfCFTA, he added, would “drive the industrialisation of Africa, support the emergence of regional value chains, turn Africa’s creative and cultural assets into engines of growth, grow jobs for the continent’s youth, convey respect to Africans wherever they may be and better prepare the continent to compete more effectively in the global markets”.

He noted that between 2015 and 2019, Afreximbank disbursed over $30 billion in support of African trade with over $15 billion channelled towards the financing and promotion of intra-African trade.

“We will aim to double intra-African trade financing so that by the end of my term, it will constitute no less than 40% of the Bank’s total assets, with aggregate disbursements, on a revolving basis, over the 5 years exceeding US$30 billion,” he announced.

In office since 2015, Oramah’s re-appointment was one of the key decisions taken by shareholders during the bank’s 2020 AGM.

A resolution proposing the re-election of Mr. Stefan-Luis Francois Nalletamby as a director representing Class “A” Shareholders and Mr. Kee Chong Li Kwong Wing as a director representing Class “B” Sharefolders was also approved by the meeting.

In addition, the 2019 audited accounts were approved, as well as the proposal to raise an additional US$500 million in equity within Afreximbank’s current Strategic Plan dubbed “IMPACT 2021-Africa transformed”.

The approval to raise additional equity was in recognition that an amount of $1 billion earlier authorised to be mobilised had almost been fully raised.

“I make a commitment that with your support, the Bank will remain well capitalised throughout my term of office and beyond. We will continue our efforts to diversify sources of equity to include the markets while ensuring that the bank’s development focus remains unchanged,” Oramah assured the bank’s shareholders.

Afreximbank is a Pan-African multilateral financial institution with the mandate of financing and promoting intra and extra-African trade. It was established in October 1993 and is owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors.

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Importation Tariff: Customs May Commence Reduction On Duties Paid On Imported Cars Next Week

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The Nigeria Customs has announced that the reduction of duties paid on imported vehicles may commence from next week.

According to a statement by the Comptroller General of Customs, Hameed Ali, while speaking to the news men in Abuja declared that the Agency is expecting an official instruction from the Ministry of finance any moment from now.

Hameed said the idea to reduce the tariff downward was to make business of importation easy for those bringing in cars from overseas.

He maintained that reduction of tariff on vehicle as contained in the finance act 2020 was created by the Commission.

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Nigerians To Pay More On Petroleum Products, Power Tariff In 2021 – FG

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The Federal government has declared that subsidy for energy has completely been removed from government fiscal plan in Nigeria.

This was contained in a statement by the Honorable Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, while presenting the the breakdown of 2021 budget in Abuja.

The Minister, While presenting the analysis for the N13.588 trillion Federal government budget with the Director General, Budget office, Mr Ben Akabueze, said same removal also applicable to power sector.

The Federal government had already increased the power tariff by 50% from the beginning of the year January 1.

With the new development, Nigerians should be expecting a harder measure on the surge on both the power tariff and more on petroleum product prices in 2021.

Do we begin to experience such increase in a country like Nigeria where oil is been exported to other country of the World?

This is a question begging for an answer.

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Discos Records N1.735 Trillion Deficits In Tariffs

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The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Prof. James Momoh wednesday disclosed that 11 electricity distribution companies (Discos) have recorded N1.736 trillion deficit in tariffs.

Momoh made the disclosure during the investigative hearing into the privatisation of power assets held at the instance of the House of Representatives Ad-hoc Committee chaired by the Majority Leader, Hon. Ado Doguwa.

He explained that loan of N701 billion was advanced to Nigerian Bulk Electricity Trading Company (NBET) as payment assurance facility to ensure a settlement of 80 per cent and 90 per cent of Electricity Generation Companies (Gencos) and gas supplier invoices to cover obligations in 2017 and 2018.

This was in addition to additional loan of N600 billion given to NBET by Central Bank of Nigeria (CBN) as payment assurance facility covering 100 per cent of gencos’ invoices for the payment for year 2019 and part of 2020, adding that the release of the funds under this tranche is based on deliverables of the power sector recovery programme.

The NERC chairman also added a projected tariffs support worth N380 billion and additional N60 billion for first quarter (Q1) and Q2 of 2021 has been capped by the PSRP financing plan, while federal government is in the process of securing a World Bank loan of $750 million.

On the other hand, the statistics available showed that the 11 discos recorded N1.830 trillion market shortfall between 2015 and 2019.

The breakdown showed that: AEDC recorded N233.077 billion; Benin – N161.452 billion; Eko – N154.853 billion; Enugu – N174.209 billion; Ibadan – N226.408 billion; Ikeja – N203.666 billion; Jos – N115.907 billion; Kaduna – N177.759 billion; Kano – N145.259 billion; Port Harcourt – N165.960 billion and Yola – N71.825 billion, respectively.

Momoh explained that based on the outcome of the baseline study on the level of aggregate technical commercial and collection losses conducted, federal government approved loan worth N213 billion from CBN with a view to paying off the tariffs’ shortfall for all market participants during the interim rules and outstanding legacy gas debts.

On the other hand, out of the N210.626 billion allocation from NEMSF to the Discos as at March 2020, total sum of N189.191 billion has so far been disbursed leaving a balance of N21.435 billion payment.

He added that the federal government is bearing the burden of N20 per kilowatt deficit recorded from the electricity tariff, as against the N50 per kilowatt which every customer ought to pay.

Earlier, the leader of the adhoc Committee, Hon. Hon. Ado Doguwa chided Director General of Bureau of Public Enterprises (BPE) for failing to honour the invitation sent to him.

He directed the BPE Director General to appear before the Ad-hoc within 24 hours, in his own interest.

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