BUSINESS
Heritage Bank to disburse CBN’s N100bn loan to health, sells FX to SMEs, education sectors
As part of proactive measures to cushion the effect of the COVID-19 and revamp the nation’s dwindling economy, Heritage Bank is set to disburse the N100billion set aside by the Central Bank of Nigeria (CBN).
This is in line with the apex bank’s policy to introduce another intervention scheme directed to the health sector, which is known as the NGN100 Billion Credit Support for the Healthcare sector (the Scheme). Specifically, the scheme is to provide credit to indigenous pharmaceutical companies and other healthcare value chain players intending to build or expand capacity.
Also, the CBN resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay schools fees and small medium enterprises (SMEs) with plans to make essential imports needed to revamp economic activities across the country. In particular, the CBN is resuming the provision of over US$100 million per week for both categories.
Meanwhile, Heritage Bank serves as a conduit which will assess and channel the profiles of interested applicants to the CBN while using its platforms to create awareness for the scheme.
The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume.
To access the N100bn loans provided by the CBN for firms in the healthcare sector, a corporate entity must submit its application to a participating financial institution (PFI) which could be either a Deposit Money Bank or a Development Finance Institution of its choice with a bankable business plan.
It stated in its latest guidelines that the PFI must appraise and conduct due diligence on the application; and upon approval by the PFI’s credit committee, the application would be submitted to the apex bank with relevant documents attached.
The CBN would process and disburse funds to the PFI for onward release to the project, it added.
The CBN stated that the PFI must receive and review applications submitted by its customers; undertake due diligence based on normal business considerations, and bear the credit risk.
They must also issue offer letters and forward qualified applications to the CBN; disburse the released funds to successful applicants; monitor the project and recover the loans from the beneficiaries, and maintain adequate records of all beneficiaries and facilities.
It requires the PFIs to register all movable assets with the National Collateral Registry; forward periodic returns in the prescribed format on the scheme to the CBN; comply with the guidelines, and carry out any other duties as the CBN may prescribe from time to time.
According to the CBN, eligible participants under the scheme comprise healthcare product manufacturers – pharmaceutical drugs and medical equipment; and healthcare service providers/medical facilities – hospitals/clinics, diagnostic centres/laboratories, fitness and wellness centres, rehabilitation centres, dialysis centres and blood banks, among others.
Others include pharmaceutical/medical products distribution and logistics services; and other human healthcare service providers as may be determined by the CBN from time to time.
Eligible activities under the scheme would include manufacturing of pharmaceutical drugs and medical equipment; establishment/expansion/upgrade of basic and specialised healthcare facilities; and medical/pharmaceutical supplies.
Others are medical/pharmaceutical research and development; distribution of medical/pharmaceutical drugs and supplies; Manufacturing of medical/pharmaceutical drugs distribution technology; and any other healthcare value chain activity as may be prescribed by the CBN.
The CBN said the term loan had a maximum of N2billion per obligor; and the interest rate under the intervention would not be more than five per cent per annum up until February 28, 2021; and that interest on the facility would revert to nine percent as from March 2021.
To access further details on the modalities, interested persons and institutions can logon Heritage Bank’s website (www.hbng.com).
BUSINESS
A’IBOM GOVT SET TO PARTNER CHINA FOR ENTREPRENEURSHIP DEVELOPMENT, AGRICULTURE, TOURISM, OTHERS
Lagos State Government, on Wednesday, brokered a strategic partnership with Niger State — a sub national entity with the largest agricultural farmland in the country — towards enhancing food production and security.
Governors of the two States signed a Memorandum of Understanding (MoU) in Lagos for a cooperation geared towards exploring their comparative advantages in order to facilitate constant supply of agricultural commodities for the end consumers.
The agreement tagged “Produce for Lagos Initiative” is part of the efforts of the two parties to key into the Emergency Food Security Initiative declared by President Bola Ahmed Tinubu to cultivate thousands of hectares of land to sustain food production and supply chain.
This arrangement is a long term strategic partnership between the two States in building competencies around their areas of strength. While Lagos is positioned as a ready organised food market for consumers, Niger has its core strength in arable land for agriculture and food production.
The signing of the agreement will be followed by massive supply of fresh farm produce to the Lagos Food Logistics hubs for storage and distribution.
Gov. Babajide Sanwo-Olu and his Niger State counterpart, Mallam Umar Mohammed Bago, signed the contract on behalf of the parties.
Sanwo-Olu said: “We have just put the pen to paper and signed the Government-to-Government agreement between Lagos and Niger states for agricultural production. Lagos, being the smallest State in terms of landmass, and Niger, being the largest State, is no coincidence that the biggest and the smallest are looking for at opportunities to citizens of our both states to be the beneficiaries of this historic partnership.”
l-r: Lagos State Attorney General & Commissioner for Justice, Mr. Lawal Pedro, SAN; Governor of Lagos State, Mr. Babajide Sanwo-Olu and his Niger State counterpart, Governor Mohammed Bago during the signing of MoU on Agriculture, at the Lagos House, Marina, on Wednesday, 06 March 2024. Behind are: Commissioners, Hon. Olanrewaju Layode (Home Affairs); Mr. Ope George (Economic Planning & Budget) and Ms. Abisola Olusanya (Agriculture).
Gov. Bago described the partnership as “a landmark” for both parties, noting that the North Central state was willing to leverage organised market in Lagos to boost economic activities in his State.
He said: “This is a landmark agreement that has been made today. Lagos is the largest consumer of agricultural resources in the country based on its population, while Niger State has the largest agricultural land. So, this Memorandum of Understanding came on the heels of exploring the strength of each state to promote food security and safety.
“Niger State is to produce agricultural commodities for Lagos State, and also process staple food items. Lagos State is to leverage the organised market and supply chain to meet consumers’ demands. This is basically the simple explanation of the Memorandum of Understanding, which is in tandem with Mr. President’s food security agenda.”
Lagos Commissioner for Agriculture, Ms. Abisola Olusanya, noted that the arrangement would help in price stability, as the MoU accommodated pre-production contracts in the value chain to enable farmers cut costs and improve output.
She said the first phase of the Food Security Systems and Central Logistics Park being built in Ketu-Ereyun, Epe would be commissioned in December to warehouse the large supplies from Niger State. In the meantime, she said the existing middle level hubs would be used as distribution points for the supplied commodities.
“This is a marriage made in heaven for our two States. This is a function of production meeting markets. Once there is an off-take market, it would catalyse the production end of the market. Then, this will lead to price stability and food availability.
“Farmers’ profit will also be guaranteed, just as consumers will be happy for timely supplies. We will also have middle men who will have regular sources of income by acting as a bridge between both ends of the market.”
Some of the agricultural commodities to be produced and shipped to Lagos markets include staple foods, rice paddies, tubers, beans, legumes, maize and grains.
BUSINESS
Adron Homes Rewards Continental Business Challenge Winners To an All-Expense-Paid Holiday, Promises More Staff Welfare
