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Emefiele: CBN retains lending rate at 11.5% to speedily exit recession 

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The Central Bank of Nigeria through its Monetary Policy Committee on Tuesday retained all monetary policy rates in a move expected to stimulate growth of the economy.

Specifically, CBN Governor, Mr Godwin Emefiele, who disclosed that the Monetary Policy Rate otherwise known as interest or lending rate was left at 11.5 per cent, explained that the decision was based on the need to speedily exit economic recession through price stability.

He spoke to journalists at the end of a two-day meeting of the Monetary Policy Committee (MPC), the last for 2020.

He also said the Cash Reserve Ratio (CRR) was retained at 27.5 per cent and the Liquidity Ratio at 30 per cent.

The MPR is the rate which the CBN lends to commercial banks and often determines the cost of funds.

Emefiele said the MPC was faced with options around whether to tighten the stance of policy to address rising price levels recognising its primary mandate of price stability; to ease to support output recovery; or to hold to allow existing policy initiatives to permeate the economy.

He said, “The committee noted that although the appropriate response to rising inflationary pressure would be to tighten the stance of policy in order to moderate upward pressure on prices, it nevertheless, felt that doing this would exert downward pressure on the recovery of output growth.

“The committee also felt that tightening would negate the bank’s desire to expand credit to the real sector at affordable terms, not only to boost production, but also to increase consumer spending. To the Committee, tightening was therefore not the appropriate response at this time.”

The Nigerian economy has slipped into its second recession in five years as the gross domestic product contracted for the second consecutive quarter, according to the latest report of the National Bureau of Statistics.

It stated that Nigeria’s GDP recorded a negative growth of 3.62 per cent in the third quarter of 2020. The country had earlier recorded a 6.10 per cent contraction in the second quarter.

This is the nation’s second recession since 2016 and the worst economic decline in almost four decades.

The economy has been battered by COVID-19, which caused a major decline in oil revenues with global economic activities stalled for months.

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CBN to begin e-invoice for imports, exports February 1

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The Central Bank of Nigeria says all import and export operations will require the submission of an electronic invoice authenticated by the authorised-dealer banks on the Nigeria single window portal, Trade Monitoring System with effect from February 1.

The CBN stated this on Friday in a circular signed by its Director, Trade and Exchange Department, Dr O. S. Nnaji, sent to all authorised dealers and the general public.

It said, ‘Further to the circular referenced TED/FEM/FPC/GEN/01/005 dated August 05, 2020, all authorised dealers and the general public are hereby informed of the introduction of e-valuator and e-invoice which replaces hard copy final invoice as part of the documentation required for all import and export transactions.

“Effective February 1, 2022, all import and export operations will require the submission of an electronic invoice authenticated by the authorised dealer banks on the Nigeria single window portal – Trade Monitoring System.

“This new regulation is primarily aimed at achieving accurate value from import and export items in and out of Nigeria.”

According to the CBN, the e-invoicing guidelines require that products that are more than 2.5 per cent around the vertical price would be queried and will not be allowed successful completion of Form M or Form NXP as the case may be.

It said an importer/exporter of goods into Nigeria must ensure that the purchase/sale contract with a foreign supplier/buyer stipulates compliance with the obligations set out in this regulation and that the supplier’s/seller’s invoice must be submitted in electronic format and authenticated by authorised dealer bank as part of the documentation for payment.

“No importer/exporter may effect payment to the credit of any foreign supplier unless the electronic invoice has been authenticated by authorised dealer banks presented together with the relevant document for payments,” it added.

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Kia partners Fixit45 for genuine auto parts, after-sale services

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Kia Nigeria has announced its partnership with Fixit45 to offer customers genuine spare parts and exceptional after-sale service.

It says the commitment to provide the very best after-sale service delivery and customer experience to thousands of customers nationwide is at the core of this partnership, adding that both companies are raising the bar in offering Kia Original Equipment Manufacturer (OEMs) auto parts, quality repairs, and best-in-class service delivery to provide amazing value-added service to all Kia customers.

It said, in a statement, “The shifting consumer interests and the need to meet their expectations with exceptional service delivery has propelled Kia Nigeria to extend its reach by signing a new partnership agreement with Fixit45 to continue to offer genuine spare parts and the delivery of cutting-edge services in the country.

“The partnership is aimed at keeping pace with consumers’ evolving wants and needs in order to remain competitive.

It said the vision of Kia Nigeria had been to bring world-class facilities closer to customers and offer quality service delivery exceeding customers’ expectations.

The statement quoted the Chief Operating Officer, Kia Nigeria, Sanjay Tatpati, as saying, “Our goal is to make quality Original Equipment Manufacturer (OEMs) auto parts accessible and affordable to our teeming customers to ensure they have an exceptional ownership experience with our Kia vehicles.

“Hence, the partnership with Fixit45 is to further expand Kia’s market reach and ease of access to teeming customers in the country.

“Customer-centricity is at the epicentre of everything we do at Kia and our partnership with Fixit45 is aimed at giving optimum value to customers to ensure that they have access to the value-oriented service and genuine spare parts.”

Speaking on the partnership, Marketing Manager, Kia Nigeria, Olawale Jimoh, said, “This joint venture with Fixit45 is an important step in our expansion plans for the Nigerian market. Finding the right partners to work with, in satisfying our customers is very vital to us. We are delighted to work with the experienced team of Fixit45 and are confident that our customers will be the ultimate beneficiaries of this relationship.”

The CEO and Co-Founder, Fixit45, Justus Obaoye, also said, “At Fixit45, we are firm believers in the power of mobility to not only enable socio-economic development and inspire ideas but also facilitate value-creating interactions that make society better. Convenience and curating a service experience that is best-in-class is what we are all about.

“This partnership is a testament to our collaborating ethos and our passion to move the automotive aftermarket industry forward.

“We are excited to have found a synergistic partner in Kia as we continue to drive and deliver quality services and automotive products to end-users. We share the same ideals of providing solutions that help people and organisations move and we are excited at the transformative opportunities that this relationship will produce.”

Co-founder & CTO, Fixit45, Abdulazeez Ogunjobi, said, “Technology helps us to disrupt a segment that has largely been based on brick-and-mortar operations.

“Our robust end-to-end ecosystem platform empowers us to cater to a diverse range of needs in the aftermarket industry. We are looking to drive a significant shift and help more vendors and customers to come online to enjoy convenience, quality, and affordable products and services via this partnership with Kia Nigeria.”

Kia, founded in 1944 in Korea, is said to have a presence in more than 190 markets and manufacturing facilities in six countries.

It has sold over 100,000 units in Nigeria since entering the country in 2008.

The statement added that Fixit45 which entered the market in July 2021 had developed Xparts, an e-commerce and search platform for auto parts sourcing and delivery.

 

 

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BREAKING: AMCON takes over IBEDC

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The Assets Management Corporation of Nigeria (AMCON) has taken over the Ibadan Electricity Distribution Company(IBEDC) Ltd over insolvency.

The Chief Operating Officer (COO) Engineer John Ayodele disclosed this in a memo to members of staff intimating them of the development, The Nation gathered.

Ayodele, in the January 20 memo, said the company fell under receivership by a September 8, 2021 Federal High Court judgment.

The judgment, he said, granted preservative orders in favour of AMCON.

He explained the government corporation has appointed a lawyer to serve in the receivership action.

He disclosed that the receiver arrived on Thursday January 20 to take charge formally, hinting that he already held a meeting with the management staff.

Ayodele, however, allayed fears over the development and assured staff of job security.

The memo reads: “Further, to the judgement wherein the Federal High Court on the 8th of September 2021 granted preservative orders in favour of Asset Management Corporation-

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AMCON, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Oqunba Esq.SAN to act as Receiver/ Manager Nominee in the receivership action.

“Based on the foregoing the Receiver/Manager came in today 20th January 2022 to the IBEDC Headquarters to take charge formally and subsequently met with the Management team. Therefore, I hereby wish to inform all staff that there is no cause for alarm.

“We are assured of job security which entails our position/ duties in the company, being entitlements to our salaries and other benefits etc.

“On behalf of the Management I urge us all to kindly go about the efficient discharge of

our duties to ensure a speedy and mutually beneficial resolution.

“I wish us all the best, while | appeal that we continue to remember IBEDC in our prayers.”

IBEDC distributes electricity to consumers in Oyo, Osun, Ogun and Ondo as well as some parts of Ekiti and Kwara States.

The Nation

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