Business

Edo govt unveils plan to disburse N300m to MSMEs

Edo State Government has explained why it earmarked the sum of N300 million to Micro, Small and Medium Enterprises (MSMEs) across the 18 local government area in the State.

The Secretary to Edo State Government, Osarodion Ogie, disclosed this at the signing of Memorandum of Understanding (MoU) with LAPO Microfinance Bank for the disbursement of the money.

He disclosed that the loan which was facilitated under the Edo State MSME Funds, would be implemented by Edo State Skills Development Agency (Edojobs).

Ogie who signed the MoU on behalf of the State Government, commended the Board of Edo MSME Funds, the management of Edojobs and LAPO Microfinance Bank.

While noting that micro finance schemes are the engine room of any economy all over the world, Ogie appealed to all beneficiaries to make good use of the loan facilities.

He, however, warned that as it’s not a grant but a revolving loan that must be paid back.

Earlier, the Chairman of the Advisory Board MSME Fund, Peter Obaseki, who commended the government for its sustained support for small businesses in the State, noted that the mandate of the board was for economic empowerment of small businesses.

Obaseki, who said the loan was part of the social transfer scheme to empower residents in the State, added that it must not be an urban phenomenon but to each political wards and units each of the 18 local government areas of the State.

He said loan which has concessionary interest of 9 per cent is devoid of gender bias.

He said 60 per cent of the funds are for females, 40 per cent for males while a provision of 10 per cent has been set aside for Peoples Living with Disabilities.

Obaseki explained that the loan disbursement was distributed in the ratio of 50 per cent to Edo South, 27.5 per cent to Edo North and 22.5 per cent to Edo Central senatorial districts respectively.

According to him, the MoU with LAPO Mfb made it the third financial partners the State Government is collaborating with to disburse to MSME in the state.

He added that LAPO Mfb was brought in to broaden the reach of the disbursement of the fund as well as monitoring, evaluation of beneficiaries and collection of loan repayment.

He noted that the state government had previously disbursed loan to 1,631 persons through the Bank of Industry and TrustFund Microfinance Bank.

The Executive Director, Corporate Services, Mrs. Gloria Bako, who signed for LAPO Mfb, commended the state government’s commitment to youth development, reassuring sustained partnership with the government.

She, however, appealed to would-be beneficiaries to make good use of the loan for the betterment of their businesses.

“We are humbled by this great task the Edo State Government has given to us, and it is an indication that the government is really concerns about the people that they govern.

“It also showed that the government is concerned not only about empowering business owners but doing a lot for the development of youths in terms of skill acquisitions.

“We want to thank the state government for the confidence reposed in our organization for the disbursement of loans to MSME”, she said.

Business

CAC threatens to shut down PoS operators as deadline for registration expires

The Corporate Affairs Commission has said it will work with law enforcement agencies and other legal means to shut down recalcitrant Sales Operators who fail to register their businesses as its 60-day deadline lapses.

The Commission disclosed this in a notice Friday on its official X handle.

This comes after CAC on July 7, 2024, issued a 60-day deadline which expired on Thursday, September 5, 2024, for all PoS operators to register their businesses.

CAC noted that there was inadequate compliance with its directive, noting that those who decided not to register may be engaging in unwholesome activities.

“The Commission notes inadequate compliance with the directive for formalization when viewed from the background of the large number of POS operators in the country. Those who have taken steps to formalize in line with the Commission’s directive are commended for their positive attitudes.

“Recalcitrant operators have refused to adhere to the advice for formalization due possibly to engagements in unwholesome activities or for some reasons best known to them.

“We are here to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal Consequences.”

Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, recently challenged the CAC’s registration directive.

Business

Dangote’s petrol to flood market from Sept 15 — NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery will begin to flood the market starting on September 15, 2024.

This development follows the refinery’s commencement of petrol refining earlier in the week.

In a statement signed by the NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja, the company clarified that petrol prices would now be determined by market forces.

The statement addressed speculations about price control, reiterating that the downstream sector had been fully deregulated and that NNPCL would no longer fix fuel prices.

Adedapo Segun, NNPCL’s Executive Vice President of Downstream, emphasised that foreign exchange (forex) illiquidity had been a major factor influencing PMS price fluctuations, which are now regulated by the free market as mandated by the Petroleum Industry Act (PIA).

Segun also noted that the current fuel scarcity should ease within a few days as more filling stations recalibrate their systems and resume selling PMS.

He cited Section 205 of the PIA, which established that petroleum prices are governed by market forces rather than government intervention. The exchange rate, he added, significantly impacts fuel prices.

Regarding the supply of petrol from the Dangote Refinery, Segun stated that NNPCL was preparing for the September 15 timeline when products would be available for distribution.

He assured Nigerians that NNPCL is working closely with fuel marketers to ensure stations remain open and well-stocked to meet demand, while measures are being taken to prevent product diversions.

Segun’s comments come on the heels of the Federal Government’s announcement of an impending boost in petrol supply over the weekend, as vessels had started offloading while reaffirming that PMS prices would not be fixed by the government.

Business

PMS Prices are determined by free market forces—NNPC Ltd

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.

Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”

He said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.

According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15th timeline provided by the Refinery.

Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”

He assured Nigerians: “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”