Money market
AfDB launches program to enhance debt management in Africa
By Opeyemi Abdulsalam
The African Development Bank (AfDB) has launched a series of training programs aimed at enhancing the debt management capabilities of 22 fragile or transitional African countries.
According to a statement released by the bank in Abuja on Wednesday, the Public Finance Management Academy for Africa (PFMA) organised the inaugural edition of the PFMA Spotlight on Public Debt Management in Transition States.
This initiative seeks to support these vulnerable nations in effectively managing their debt and achieving financial resilience.
PFMA, an AfDB’s African Development Institute, organised the two-day policy dialogue on sustainable debt management tailored to the needs of Africa’s 22 most vulnerable countries.
The programme will help countries build their institutional capacity to better manage debt and achieve the financial resilience needed for development.
The series brings together heads of debt management offices, treasurers and accountants general, heads of revenue authorities, and representatives of central banks.
It also brings together supreme audit institutions, anti-corruption agencies, civil society organisations, academia, the private sector, lawmakers, and other relevant stakeholders in transition states.
Ethiopia’s Minister of State for Finance and Economic Cooperation, Semereta Sewasew, said there had been positive strides in debt management on the continent.
Sewasew, however, said debt challenges and vulnerabilities persisted, especially in most transition countries on the continent.
“These countries face various political, economic, security and environmental challenges.
“I am pleased that the AfDB has designed this training programme to help develop and strengthen the capacity of these countries.
“To manage their debt more prudently, to make their debt more productive, and restore resilience, stability, and growth to their economies,” she said.
Sewasew said the Government of Ethiopia had made substantial progress in improving the country’s economy, particularly in addressing debt challenges and commended the AfDB as a steadfast partner in this process.
“Our government will continue to work with the bank and support its programmes not only for Ethiopia but for the entire continent, especially in improving debt management, transparency, and sustainability,” Sewasew said.
Meanwhile, the AfDB’s Deputy Director-General for East Africa and Director-General designate for Nigeria, Abdul Kamara, said the training was part of the implementation of the Bank’s Special Project.
According to Kamara, the theme of the project is “Strengthening the Capacity of Transition States for Effective Management and Mitigation of Debt Distress Risks.”
“The project is being implemented from April 2023 to March 2026 for 22 African transition countries under the Bank’s Transition Support Facility.
“We believe that we can do even more for our countries.
“We expect that at the end of these two days, participants will have, among other things, an understanding of best-practice solutions tailored to their particular debt management circumstances,” he said.
Similarly, the Director of the African Development Institute, Eric Ogunleye, said, “African transition countries should not be mere loan takers; they are disadvantaged.
“Hence, they need to be empowered to contract, negotiate and use loans to improve the quality of life of their citizens.”
The Securities and Exchange Commission (SEC) says the regulation of crypto-currencies and other digital assets are under its full control and regulation.
The Director-General of SEC, Dr Emomotimi Agama, said this at the first Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) on Thursday in Abuja.
Agama described crypto assets as digital or virtual assets utilised by cryptography for security.
He said there were over 15,000 crypto currencies created which had Bitcoin as the most popular.
The director-general said that the regulatory landscape for cryptocurrency was not yet firm even in the United States.
According to him, Nigeria’s crypto transaction volume had reached $56.7 billion between July 2022 and June 2023, hence the efforts by SEC.
Agama quoted a survey which said that 33.4 per cent of Nigerians were using or owned crypto currencies.
”Secrecy of crypto usage is what is driving its adoption by the youth.
”Some people don’t have bank accounts but they have crypto wallet.
”Crypto is like an air, can you cage it, No. What you can do is to build a risk management around it, ”he said.
Agama said the commission would continue to educate investors on the risks associated with digital assets to be able to make wise investment decisions.
Chief Osita Izunaso, the Chairman, Senate Committee on Capital Market, said the country required effective crypto regulation to benefit from the gains of the market.
Izunaso said the absence of effective regulation on crypto currencies had exposed so many investors to fraud.
He called for synergy from all stakeholders to harness opportunities in the crypto space.
The Director-General of the Debt Management Office, Ms Patience Oniha, called for awareness creation to educate investors to make informed decisions.
Mr Bello Hassan, the Managing Director of the Nigeria Deposit Insurance Corporation, said that crypto currencies had come to stay as younger people were patronising the market.
Hassan called on SEC to constantly update investors with unbiased information of the associated risks of trading in the crypto market.
Prof. Uche Uwaleke, the President, ACMAN, said the conference was aimed at considering the possibilities of expanding the financial sector regulations.
Uwaleke said the conference would also explore ways to accommodate crypto assets within the regulatory space.
ACMAN conferred awards on many stakeholders in the financial and capital markets for their various contributions in moving the markets forward.
The conference was organised by ACMAN in collaboration with SEC.
By Opeyemi Abdulsalam
The Nigerian currency, Naira, maintained its stability against the United States dollar at the official foreign exchange market on Wednesday, trading at N1,507.83 per dollar.
According to data from FMDQ, this represents a marginal change of N0.04 from the previous day’s rate of N1,507.79 per dollar.
At the parallel market, the naira also maintained its exchange rate of N1,505 per dollar, unchanged from the previous day.
Bureau de Change operators in the Wuse Zone 4 area of Abuja confirmed the rates, with one operator, Dayyabu Ashiru, stating that they sell at N1,505 per dollar and buy at N1,495.
“We sell at N1,505 per dollar and buy at N1,495,” Dayyabu Ashiru, a Bureau de Change operator in Wuse Zone 4 told a source on Wednesday.
The stability of the naira comes on the heels of recent reforms implemented by the Central Bank of Nigeria (CBN), which have attracted a significant inflow of $24 billion into the country in the first quarter of 2024, according to the CBN Governor’s recent interview with Bloomberg Television.
In a related development, the CBN on Tuesday issued a fresh directive permitting International Money Transfer Operators and all banks to pay diaspora remittances in naira.
O3 Capital, a leading Nigerian fintech and the country’s first non-bank credit card issuer, has disclosed that the launch of its four American Express (‘Amex’) cards have been met with huge demand both in and out of Nigeria.
Chief Executive Officer of O3 Capital, Abimbola Pinheiro, in a statement said, “We are delighted with the amazing response to our launch of American Express cards in Nigeria.
“The success of the Green and Platinum cards, in particular, shows the market’s enthusiasm for modern financial solutions. We are proud to support both individual and corporate customers in their financial journeys.
“Our cards launch has also struck a major chord with established banks and fintechs – many of whom have approached us to partner with them. The future for O3 is exciting.
“We are also pleased to have received a positive acknowledgment from the Government of Nigeria, to our exciting developments – and which is aligned with the Financial System Strategy 2020 of the Central Bank of Nigeria (CBN), and the main thrust of a ‘cashless Nigeria’,” he stated.
Abimbola further said the acknowledgment underscores the importance of O3 Capital’s contribution to the country’s financial ecosystem.
In May 2024, O3 Capital announced an agreement with American Express to issue four new American Express credit cards: the O3 American Express® Green Card for consumers, the O3 American Express Gold Card for consumers, and the O3 American Express Platinum® Card for consumers; and the O3 American Express Gold Business Card for small- and medium-sized enterprises (SMEs).
Tinubu appoints eight new Permanent Secretaries
Naira records first appreciation against dollar in nine days
