Finance
CBN raises hope of importers with Chinese Yuan invoices
The Central Bank of Nigeria (CBN)-led Bankers’ Committee has reassured importers will pay less if they get Renminbi invoices from Chinese exporters.
Rising from its meeting in Lagos, the committee, comprising commercial and merchant banks’ Chief Executive Officers, said the discount was meant to encourage importers to go for Renminbi instead of dollars.
This, it said, will help protect Nigeria’s foreign exchange reserves, which are in dollars.
The need to keep the naira stable prompted the CBN to sign the bilateral currency swap agreement with the People’s Bank of China (PBoC) worth about $2.5 billion.
In local currencies, the swap is worth 15 billion Renminbi (RMB) or N720 billion. The three-year renewable deal will allow for the direct exchange of RMB and naira for the purpose of trade and direct investment between the two countries.
Stanbic IBTC Bank Managing Director Demola Sogunle, who spoke at the end of the Bankers’ Committee meeting, said: “Specifically on the Renminbi and what is in it for importers, the idea is that the CBN is encouraging importers to receive invoices in Renminbi instead of dollars. And one of the incentives is that there is percentage spread, which is yet to be determined. It is actually given to any importer that is bringing Renminbi invoices for settlement, instead of dollar invoices.”
Such importers will avoid 10 per cent mark-up prices usually associated with dollar importation. China remains Nigeria’s biggest trading partner. The currency swap deal is expected to help small and medium enterprises grow their businesses.
Sogunle said that in terms of the overall cost, importers who submit Renminbi invoices will pay less. “So, when you look at the overall cost, in terms of naira, if you bring Renminbi invoices, it is going to be cheaper for the importer coming to the CBN to get foreign currency, which in this case will be Renminbi. The importer will have to bring lesser amount of naira. If he goes ahead to bring from the same supplier, based in China and makes the invoice in dollar, it is going to cost more, in terms of the naira amount he is going to use to get the foreign currency,” he added.
The logic is that “if we are able as a country, to bring in machinery and equipment, without depleting the foreign reserves, the external reserves will not be under threat”.
Sogunle also said invoices that are domiciled in Renminbi do not affect the foreign exchange reserves, now at $48 billion. “And do not forget, let’s link to what we are talking about in terms of external reserves, the external reserves will not be under threat. There is 15 billion Renminbi in place, in this bilateral currency swap. We are in a very good position, and that is why it is important to encourage importers to bring invoices in Renminbi, instead of dollars”.
Also speaking, CBN Director, Banking Supervision, Ahmad Abdullahi, said the drop in inflation rate to 11.61 per cent in May and 448 billion in foreign reserves as well as 2.44 per cent projected Gross Domestic Product (GDP) growth for 2018 are all positive indicators for the economy.
He said the CBN had enough arsenal to keep the naira stable and is prepared to ensure stability in the foreign exchange market.
United Bank for Africa Group Managing Director/CEO Kennedy Uzoka also assured that the CBN was strong enough to keep defending the naira. He said the regulator made it possible for all the banks to sell Personal Travel Allowance and Business Travel Allowance to travellers at all their branches, including persons that do not have bank accounts with the lenders.
“The CBN has been intervening in all the markets and has the capacity to defend the naira,”Uzoka said.
According to the PBoC, the swap is to facilitate bilateral trade, direct investment, and safeguard financial market stability. The trade is expected to reduce the demand for United States dollar by Nigerians importing from China and consequently strengthen the value of the Naira. The deal will reduce certain barriers for Nigerian importers of goods from China and reduce the cost of transactions in multiple currencies.
China has been one of Nigeria’s largest import partners over the last five years, with imports from China accounting for an average of 20.95 per cent of total imports between 2013 and 2017.
Imports from China increased by 21.16 per cent from N1.48 trillion in 2013 to N1.79 trillion in 2017. Nigeria’s exports to China averaged just 1.50 per cent of total exports over the period. Exports to China increased by 28.99 per cent from N171 billion in 2013 to N220.57 billion in 2017.
*The Nation
Finance
Flutterwave Powers Local Businesses in Ghana Through Pay With Bank Transfer
Reporter: Ikenna Ugwu
Flutterwave, a leading payments technology company in Africa, has broadened its reach in Ghana through the integration of Pay With Bank Transfer, done in partnership with Affinity Bank.
With over 115 million bank transfer payments recorded in Ghana in 2023, this move will ensure that Flutterwave businesses in Ghana can now receive payments seamlessly and securely through a rapidly growing payment method. While Mobile Money leads as the preferred payment type for everyday transactions in Ghana, the recent growth in transactions for Pay With Bank Transfer symbolizes the expanding payment options available for Ghanaian businesses.
Flutterwave has a track record of driving innovation in the African finance ecosystem, and this new development promises versatility, thereby expanding the pool of customers available to businesses. As a preferred payment method, it also promises faster payments while providing access to a more secure process of transacting which benefits both the sender and the receiver (business).
“We are excited to extend our services to the Ghanaian market” says Olugbenga Agboola, Flutterwave Founder & CEO“At Flutterwave, we are driven by the vision of building Africa’s economy. By making payment options like Pay With Bank Transfer available for everyday use, we are expanding access to payments and enabling local businesses to thrive in the economy”
By establishing this strategic partnership, Flutterwave aims to drive the adoption of the Pay With Bank Transfer option in Ghana, using virtual accounts to allow for secure and transparent payments. This will provide enterprises and small businesses with a simpler way to receive payments and give their customers a seamless process of making payments.
Geoffrey Fiador, Manager, Country Operations and Partnerships, at Flutterwave stated: “By delivering essential payment options like Pay With Bank Transfer for businesses in Ghana, we’re providing an easy way for them to increase their revenue opportunities to grow their businesses. ”
This announcement comes at the heels of Flutterwave’s recent approval by the Bank of Ghana to provide inward remittance services. With a track record of success across Africa, Flutterwave continues to be a trusted partner for businesses in over 34 countries, providing the tools and expertise necessary for success in the dynamic African market.
Finance
Stanbic IBTC Capital leads Presco PLC’s ₦82.9 Billion Bond Issuance to drive West African market growth
Reporter: SANDRA ANI
Presco PLC (Presco or the “Company”), has achieved a significant milestone with the successful issuance of its ₦82,896,000,000 7-year 23.75% senior unsecured fixed rate Series I Bonds under its ₦150 billion bond issuance programme (the “Transaction”) with the Securities and Exchange Commission (“SEC”). Stanbic IBTC Capital Limited (“Stanbic IBTC Capital”) acted as the Lead Issuing House on the Programme.
The proceeds from the Transaction will enable the Company fund its acquisition of a 100% equity stake in Ghana Oil Palm Development Company (GOPDC), further supporting its strategic expansion objectives.
Speaking on the transaction registration, Mr Reji George, Managing Director / CEO, Presco PLC commented:
“The successful completion of our Series 1 Bond issuance solidifies Presco’s foundation for continued growth and expansion. Aligned with our strategic objectives of increasing our planted area of palm oil and, to lead Africa in the fully integrated edible oil and fats business in the nearest future, the proceeds from this issuance will be primarily directed towards the acquisition of a majority equity stake in the Ghana Oil Palm Development Company (GOPDC).
This not only enhances our operational efficiencies, It also solidifies our market presence and competitive advantage in the palm oil sector beyond Nigeria. Most importantly, this will enable us to better serve our valued customers and deliver sustainable value to our shareholders. We extend our sincere gratitude to Stanbic IBTC Capital and all our advisors for their support throughout this process.”
Also speaking on the transaction registration, Oladele Sotubo, Chief Executive, Stanbic IBTC Capital, said:
“Stanbic IBTC Capital is proud to have advised Presco PLC on the successful issuance of its ₦82.9 billion Series 1 bond. As the largest local currency corporate bond issuance in the Nigerian market in recent years, this milestone underscores our deep expertise in capital markets and our commitment to delivering innovative, high-impact financial solutions.
Beyond reinforcing Presco’s strategic growth, this transaction enhances funding diversification within the agricultural sector, driving sustainable industry expansion. We appreciate Presco PLC’s trust in Stanbic IBTC Capital and the consortium of advisors who contributed to the successful execution of this landmark deal.
Flutterwave, Africa’s leading payments technology company, has announced today that its online merchants in Nigeria can now accept American Express payments.
American Express Card Members – with consumer, business, or corporate cards – will be able to make payments directly to e-commerce businesses using Flutterwave in Nigeria.
This service will also be available to Flutterwave merchants in other countries including Tanzania, Rwanda, Ghana and Uganda in the near future.
This collaboration facilitates online transactions and offers a range of benefits for both merchants and online shoppers:
- Flutterwave merchants can attract business from a new customer base of American Express Card Members in Africa and around the world. This includes consumers with personal cards and spenders with business or corporate products. Terms and conditions apply.
- For shoppers, there is more choice when it comes to being able to select their preferred method of payment when transacting with Flutterwave merchants. This collaboration strengthens the American Express global network and increases the number of locations across Africa that can be used by American Express Card Members to purchase a range of different goods and services.
Speaking on the development, Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave, said:“At Flutterwave, we’re always looking for ways to connect the world to Africa through payments. This is one of our initiatives to ensure that more people across the world can pay using Flutterwave in Africa. We understand the value of providing shoppers with payment methods that work for them, as well as helping businesses to expand their customer bases. This collaboration also provides more options of where to shop and what to buy to American Express card holders across the globe. By offering American Express as a method of payment, Flutterwave will make the payment process faster and simpler for American Express card holders, and improve the experience for e-commerce businesses using Flutterwave, helping them to start locally and sell globally.”
On his part, Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, said: “American Express continues to expand in Africa to enable greater payment choice for businesses and consumers. Through the agreement with Flutterwave, a trusted payment provider, we are giving e-commerce merchants in Nigeria the opportunity to reach American Express Card Members around the world. The collaboration is a win-win because it also increases the number of places where our Card Members can use their Cards in Nigeria.”
Flutterwave and American Express share similar visions; to enable businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).
Flutterwave has processed over 630M transactions in excess of USD $31B, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries. On the other hand, American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
Samsung Expands Accessibility with Local Language Integration on Galaxy S25, A56, A36, and A26 Devices
Breaking: ‘Welcome home,’ Gov Mbah Receives Edeoga Back to PDP
NUJ at 70: Private Broadcast Members Congratulate Union
LASG Acquires New Outboard Engines For Optimum Boat Performance
Elon Musk builds Hotel in Mars, Sets to launch soon at $5million per night – Photos
