The Nation Newspaper

Category: Money

  • GDP rebasing ‘to assist Nigeria attain Vision 20:2020 project’

    GDP rebasing ‘to assist Nigeria attain Vision 20:2020 project’

    The Gross Domestic Product (GDP) rebasing exercise suggests that by mere statistical adjustments and better measurement of Nigeria’s economic activity, the country is on its way to achieving the Vision 20:2020 target, Opeyemi Agbaje, CEO, RTC Advisory Services Limited, has said.

    Agbaje, who spoke  in Lagos, said the rebasing makes Nigeria the 26th largest economy in the world and biggest economy on the continent.

    Speaking on  Nigeria’s Economy in first quarter 2014: Issues and Outlook, he said GDP rebasing does not imply an increase in national income and productivity. He said GDP is not a measurement of income, but of economic output and production within an economy.

    “GDP rebasing doesn’t alter our poor performance in terms of poverty, unemployment and inequality-GDP rebasing doesn’t change the material conditions of individuals, homes and firms within the economy,” he said.

    Agabje said what GDP rebasing does is give Nigeria a more accurate picture of the current state of our economy and presents a more credible and contemporary report of the state of sectors and overall activity within the economy.

    He said: “Nigeria’s GDP rebasing clarifies some previously unresolved incongruities in our economy, like why the large global telecommunications companies and sector analysts under-estimated the potential depth and size of the sector pre-digital mobile license auction in 2001.”

    The exercise, he said, also clarifies issues relating to why per capita GDP appeared somewhat larger than previously thought. He added that i is a commonsense measure consistent with global best practice that simply updates a country’s assumptions and templates for measuring our level of economic output.

    “Continuing to use a base year of 1990 to quantify output in Nigeria contrary to global convention of rebasing at least every five years would have been irresponsible and incompetent. On the other hand, no one earns any plaudits for merely re-basing GDP just like no one receives commendations for using a time piece that correctly tells the time. We simply now know the reality about the size of our economy, which is a good thing,” he said.

    On the benefits of the exercise, Agbaje said Nigeria would now have better economic data for policy analysis and planning. Also,  the size and global ranking of Nigeria’s GDP means it has acquired increased strategic stakes within the context of the global economy. “The case for Nigeria being a BRINCS (Brazil, Russia, India, NIGERIA, China, South Africa) economy is probably compelling in the light of us becoming a $510 billion economy.

  • Diamond Bank gets recognition

    Diamond Bank gets recognition

    Diamond Bank Plc has been recognised for its market leadership in the Nigerian Banking industry. The lender was presented the award of the Best Issuing Partner Bank in the sub-Saharan African category by the International Finance Corporation.

    The award was presented to the bank’s officials at the inaugural Global Trade Partners Awards dinner held at the conclusion of the IFC Sixth Global Trade Partners Meeting. The meeting took place last week in Lisbon, Portugal and it attracted over 350 delegates from 56 countries.

    Portuguese Deputy Prime Minister, Paulo Portas delivered the opening keynote address, kicking off two days of insightful discussions on building cross-border banking networks, developing innovative solutions for agribusiness and commodity finance, and enhancing global value chains by financing small and medium enterprises.

    “Our annual conference provides an unparalleled opportunity for our partners to learn from global experts and develop business leads in all regions,” said Georgina Baker, Global Head of Trade and Supply Chain Solutions at IFC. “We are pleased to acknowledge those banks that innovated or worked extensively with IFC last year to support the growth of emerging market trade and help more countries and firms integrate into global supply chains.”

    The Global Trade and Supply Chain Solutions team at IFC was formed in 2010 to integrate working capital financing and trade facilitation initiatives with IFC’s award-winning Global Trade Finance Program and Global Trade Liquidity Program.

  • Akingbola, Atuche could reclaim banks with N1tr, says Chike-Obi

    Akingbola, Atuche could reclaim banks with N1tr, says Chike-Obi

    For the first time, the Chief Executive Officer (CEO), Asset Management Corporation of Nigeria (AMCON), Mustafa Chike-Obi has broken his silence over the takeover of the defunct Intercontinental Bank Plc and Bank PHB Plc. He said previous owners of the banks could come forward and retake the lenders, but must pay AMCON a total of N1 trillion for the banks.

    Dr. Erastus Akingbola and Francis Atuche were former Managing Directors of the defunct Intercontinental Bank and Bank PHB respectively. While Access Bank acquired Intercontinental Bank, Bank PHB now runs under the name, Keystone Bank Limited.

    Speaking yesterday at the Bank Directors’ Association of Nigeria (BDAN) 2014 Symposium held in Lagos, Chike-Obi said he understood that there were plans to petition regulators to reclaim those banks. He said he would sign any deal authorising such transaction provided the money is paid back to AMCON, adding that  AMCON put in N600 billion in Intercontinental Bank, while Bank PHB got N400 billion bringing the cost of rescuing both lenders to N1 trillion.

    “The banking crisis in Nigeria was very severe. I heard recently, because the suspended Governor of the Central Bank seems to be under a cloud, at the moment. People are going back and saying they are going to petition to get their banks back. I will use this opportunity to say: anybody who wants their banks back; any of those banks, and are ready to give AMCON back the money AMCON put in those banks, I will sign that deal immediately.

    “If Mr Akingbola wants Intercontinental Bank tomorrow; and is willing to give me back the N600 billion AMCON put in there, I will sign immediately. The same thing with Bank PHB, we put N400 billion there, I will take the N400 billion and give the bank back.  Those banks were in very bad shape, and had to be rescued,” Chike-Obi said.

    Defending the reforms in the banking sector, he said the actions taken so far were honest, genuine, expensive, time-consuming.

    “When some people say the banks were healthy and that the banks were not healthy, even today as we sit, we are not completely out of the woods. We have issues with foreign obligations in Nigerian banks. If something happens to the naira, many banks will be under pressure,” he said.

    According to him, those running around thinking the matter has been solved; those that sit back and want their banks back, blaming the regulators to keep watching out because the crisis is not completely over.

    He however assured that the  banking system is stable, adding that at the end, everybody involved in this reform has done the best they can.

    Speaking further, he said although AMCON wants bad loans recovered,  it will not do that at the expense of the businesses of the debtors. He said being too tough with the debtors could lead to shut down of many manufacturing companies. That will also lead to job loss. “We will be irresponsible to shut down businesses jut to prove that we are working hard,” he said, adding that the act of borrowing money from banks and not paying back is a civil matter.

  • Access Bank gets nod to raise $1b

    Access Bank gets nod to raise $1b

    Access Bank’s shareholders have endorsed the lender’s plan to raise $1 billion additional capital.

    The shareholders who spoke at the bank’s 25th Annual General Meeting (AGM) held yesterday in Lagos said the funds could be raised through public offering, private placement, rights offering, book building process or other methods or a combination of methods.

    The shareholders said funds would be raised in tranches when needed and would be used in the bank’s priority growth sectors and market segments that guarantee steady earnings in conformity with the bank’s sustainable growth agenda. This is in furtherance of its objective of being ranked as one of the top three banks in any of the markets in which it operates.

    Its Board Chairman, Mr. Gbenga Oyebode said: “The Board has considered a variety of available capital raising options and came to the conclusion that having the option of raising additional financing of up to $1billion or its equivalent in local currency via the issuance of debt instruments is the most cost-efficient option to meet the bank’s capital adequacy objectives.”

    He added that the injection of fresh capital into the bank’s operations is imperative for the realisation of its developmental goals and commitment to society.

    The shareholders also unanimously approved the re-election and election of new directors to the bank’s board. The new directors are Mr. Paul Usoro, and Dr. (Mrs) Ajoritsedere Awosika.

    The shareholders also commended management and board for the performance recorded for the period under review.

    Chairman, Shareholders Trustee Association of Nigeria (SSAN), Mukhtar Mukhtar, said in the middle the changes experienced in the operating environment, the ability of the bank to grow deposits at a double-digit rate is impressive and highly commendable, noting that such signals stability and security of a financial institution.

     

     

     

  • ICAN hails Odu’a Investment’s strategies

    The Institute of Chartered Accountants of Nigeria (ICAN), has hailed the investment strategies of Odu’a Investment Company Limited, especially on the newly opened shopping malls in Ibadan.

    Its President, Alh Kabir Alkali Mohammed gave the commendation yesterday after a working tour of the Heritage Mall and the Cocoa Mall, located at the Cocoa House Complex, Ibadan, Oyo State capital.

    Mohammed who is the 49th president of ICAN, led members of his executives to the  headquarters of Odu’a Investment Company located in Dugbe.

    He said the new malls have given Ibadan a facelift and also increased the number of people coming for shopping, thereby making the area a rich economic arena for investment.

    He said:“We have come, we have seen and we are surprised with the level of transformation in this company. We are not expecting this type of edifice in Ibadan, but in Lagos or Abuja. You have changed the face of Ibadan and this is why some residents of neighbouring states are moving down here.”

    He promised ICAN’s professional support for further transformation of the firm.

    Group Managing Director the firm, Chief Adebayo Jimoh thanked ICAN executives for providing a robust platform for training highly skilled personnel.

    Jimoh said:”We have more accountants than engineers here, which shows you the level of training and human capacity building we are giving to our workers. We record more chartered accountants over there and attach more incentives to them.”

  • Bank customers’ group emerges

    Bank Customers Association of Nigeria (BCAN) has been inaugurated in Lagos.
    The body is to help bank customers address their grievances against banks and regulators of the financial services sector.

    At the inauguration, BCAN President, Dr. ‘Uju Ogubunka, said the forum would help bank operators and regulators collaborate with customers in settling disputes.

    This, he said, would help in achieving financial inclusion for the benefit of the citizenry and the growth of the economy.
    He described the group as a consumer protection-focused organisation that recognises the inter-dependence of providers and consumers of banking products and services.

    Ogubunka said the group would promote and protect the rights and interest of its members. It will also educate the public on the advantages inherent in the operations of efficient banking policies and the need to develop a healthy banking culture.

    Also, the BCAN is expected to provide credible and common platform for customers of banks in the country to consider, take decisions and act on matters of common interest to them.

    The group will also be involved in gathering, analysing, evaluating and sharing information on banking, finance and other related subjects.

  • CBN, NDIC to inspect microfinance banks quarterly

    CBN, NDIC to inspect microfinance banks quarterly

    The Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) will, henceforth, look into the books of microfinance banks (MfBs) to ascertain their state of health.
    It is to check the lenders’ stress level, clean up of delinquent loans and reorganise their balance sheets to forestall unwholesome practices that resulted in the liquidation of many MfBs in the past.
    Last February, the CBN announced the revocation of licences of 83 MfBs. The closure of the institutions, according to the apex bank, took effect from December 20, last year. In view of the closure, the NDIC was appointed the provisional liquidator for their winding up.
    The NDIC has begun the process of winding up of the affairs of the affected MfBs. Findings showed that the inability of the firms to recapitalise was responsible for their closure.
    The apex bank gave MfBs up to December 31, last year, to recapitalise or be liquidated. Its Director, Other Financial Institutions, O.A. Fabamwo, said it was exigent to remind directors and shareholders of all MfBs that the deadline is sacrosanct.
    He, however, advised the banks to conduct due diligence and seek professional legal and financial advice. He also reminded directors and shareholders of all MfBs on the deadline to ensure compliance with the Revised Microfinance Policy Framework, particularly in respect of the capital requirements for each category of MfB and existing branches/cash centres, among others.
    Already, the CBN and other stakeholders have been carrying out intensive sensitisation of the subsector, educating operators on risk management and corporate governance principles.
    The CBN, which several months ago asked the MFBs to recapitalise, had categorised them under different amounts of capital base requirement. A unit MfB bank is authorised to operate in one location without branches/cash centres, and is required to have a minimum paid up capital of N20 million, while that of a state is expected to have a minimum paid up capital of N100 million. It is equally allowed to open branches within the same state or the Federal Capital Territory (FCT).
    But the national MfB is authorised to operate in more than one state, including the Federal Capital Territory (FCT). It is required to have a minimum paid up capital of N2 billion and is allowed to open branches in all states of the federation and the FCT, although subject to prior written approval by the CBN.
    Many of the MfBs being liquidated by the NDIC ran into trouble when many of their debtors refused to pay back their loans, over 80 per cent of which were unsecured. Besides, some of the MfBs were taking excessive risks, and branching out too quickly without considering resources at their disposal and whether utilised funds were short or long term obligations.

  • Diamond Bank backs MSMEs

    Diamond Bank backs MSMEs

    Diamond Bank has reiterated its commitment to Micro, Small and Medium Scale Enterprises (MSMEs) through its BusinessXpress that provides financial and non-financial interventions to the sub-sector.
    It made the promise at a seminar in Lagos aimed at educating MSMEs on how to build capacity in financial management.
    The topics discussed included: “Build up to breakthrough”, “Introduction to cash flow and Diamond Bank offerings for MSMEs”.
    Addressing participants, its Executive Director, Retail Banking, Mr. Uzoma Dozie, stressed the need for entrepreneurs to have well-articulated visions for their businesses.
    He said: “Entrepreneurs need to have a well-articulated vision, which involves understanding the perspective of their customers and staff, because a business grows as her customers grow and capacity building is what will help MSMEs to sustain the growth of their businesses.”
    “Reduction of physical cash flow in MSMEs, by making use of electronic banking channels, which helps to monitor expenses and inculcate financial discipline, is fundamental to the ultimate success of a business,” Dozie added.
    Head of Retail Banking, Mr. Jude Anele, who spoke on the contribution of MSMEs to the growth of the economy, said the bank is not just providing loans, but building the capacities of MSMEs, while insisting that the success of MSMEs is crucial to Diamond Bank and the economy at large.
    On the bank’s determination to continue with the seminars, Head, Micro, Small and Medium Enterprises Segment, Mr. Chima Nnadozie, revealed that the lender has been supporting MSMEs with loans without collateral since 2009, offering a total range of solutions that MSMEs need and has been encouraged to continue the seminars because the feedback from participants has been very positive.
    Successful entrepreneurs, who shared their stories at the event, included the Executive Director of Mopeth Group of Companies, Mrs. Odunola Oyegade and the CEO of Avis Nigeria, Mr. Kolawole Ogunbanjo. They stressed the importance of reading to entrepreneurs.

  • Banks’ road to higher profit

    Banks’ road to higher profit

    There are two sides to a report. The true and the false sides. Many banks like to give the false side to hide their sordid deeds. Unknown to them, they are undoing themselves. By adhering to transparent and efficient reporting standards, banks, experts say, will be rewarded with higher returns on investment and an improved risk management system. COLLINS NWEZE reports.

    For banks, the road to higher profit and sustainable business practices lies in improved reporting standards, but, many of them seem not to know this as they continue to lie with statistics.
    With improved reporting standards, banks are expected to enhance their overall risk management, reduce cost of operations, create more avenues for fresh capital inflows and the ability to attract and retain talents.
    Many banks are facing tougher challenges, because of the commitment of the Central Bank of Nigeria (CBN) to enthrone corporate governance and accountability. To the CBN, the easiest way to meet regulatory expectations is to adopt and implement sound reporting standards.
    At the G4 Sustainability Reporting Guideline Training, organised by Access Bank in Lagos, the Group Managing Director, Mr Herbert Wigwe, said for a business to be truly sustainable, it must sustain not only the needed environmental resources, but also its social resources, including employees, customers and reputation.
    He said Access Bank has been collaborating with the Global Reporting Initiative (GRI) Focal Point, South Africa, Swedish International Development Cooperation Agency, (SIDA) and Thistle Praxis’ sustainability capacity building in the country.
    He said the workshop was designed to provide participants with the requisite knowledge of sustainability reporting, help them manage the reporting process and benefit from the transparency of adopting such standards.
    “Additionally, the programme provides a strategic opportunity for advancing the shared mission of mainstreaming sustainability reporting into business practices in Nigeria and Africa, as well as enhancing the presence of the Global Reporting Initiative in Nigeria at the national and regional levels,” he said.
    Wigwe, who was represented by the bank’s Chief Risk Officer, Gregory Jobome, said sustainability and responsible business practices are important to the bank and are consistent with its vision of championing and supporting such initiatives across Africa.
    He said the bank’s involvement in certain corporate actions are a testimony to the bank’s sustained efforts at nation building and support for the financial services sector, in achieving a seamless integration of sustainable business practices into the core of its business operations.
    Head, GRI Focal Point, South Africa, Douglas Kativu, urged Nigerian banks and government agencies to improve on standard in the practice of sustainability reporting, given the size and relevance of the country in the global economy, saying these have prompted campaigns that the global community should consistently review business decisions and their environmental impact to make the earth truly sustainable in the long term.
    The Chief Executive Officer, Thistle Praxis Consulting, Ms. Ini Onuk, said the workshop was able to improve participants’ capacity to present sustainability reports in a manner that demonstrates linkages between strategies and commitment to sustainable global economy.
    She said this would help organisations measure, understand and communicate their economic, environmental, social and governance performance accurately, thus making the world become more accountable.

    Stakeholders’ roles
    The GRI Focal Point South Africa works to promote the importance of transparency for markets and better knowledge of sustainability reporting (SR) in key target markets on the African continent, as well as in the Southern African Development Community (SADC) region. It is also committed to building and strengthening sustainability performance and reporting capacity as well as shaping the reporting environment by influencing public policy and market initiatives.
    Also, the SIDA is a government organisation under the Swedish Foreign Ministry that administers almost half of Sweden’s budget for development aid, while the ThistlePraxis Consulting is a Strategy and Assessment Management Consulting firm that assists organisations in all sectors through the delivery of innovative solutions from effective strategies.

    International Finance
    Corporation (IFC) partnership
    Access Bank Plc, International Finance Corporation (IFC) and other signatories of the Nigeria Sustainable Banking Principles (NSBP) last year advocated a holistic implementation of the policy in order to contribute to the development of the economy.
    The stakeholders noted the need to encourage knowledge and experience sharing among industry players, and other international organisations if the objective of the NSBP is to be achieved.
    According to the Chairman of the committee, Jobome “the conference was convened to foster a holistic implementation of the NSBP by encouraging knowledge and experience sharing among industry players and other international organisations, like the IFC and Sustainable Finance Limited.”
    He explained that the bank’s objective as the Chair of the NSBP Steering Committee, and Co-host of the event, is to encourage practices that would aid the actualisation of the objective of the committee in ensuring the successful implementation of the Nigeria Sustainable Banking Principles across Nigeria’s financial institutions.
    He said the NSBP was also developed for the banking sector to signal the industry’s commitment to economic growth that is environmentally responsible and socially relevant, noting that the bank has successfully embedded sustainabi-lity into the core of its operations by initiating capacity development of its employees. This, he said, would ensure that all staff understood what sustainability means.

    Regulatory backing
    The CBN and Nigeria Deposit Insurance Corporation (NDIC) have provided regulatory support and framework for the sustainable banking practice in the country.
    For instance, Special Adviser to the CBN Governor on Sustainable Banking, Dr. Aisha Mahmood, said plans by the regulator to institute nationwide Biometric Solution for the financial system would be a game changer for the industry.
    She told The Nation the CBN has been making steady progress on how to get more people into the financial system especially with the institution of the agent banking model, adding that the introduction of biometric solution by the apex bank is a right step in achieving sustainable banking practice.
    Mahmood said the facility is also expected to help those who are not educated to use biometric to be part of the payment system.
    She said with the biometric solution, the CBN, banks, the Nigeria Interbank Settlement System (NIBSS) and banks’ branches will be connected to the facility when it takes off.
    The CBN assured that the biometric exercise will not interfere, or be in competition with the National Identity project, but instead, it would be rolled into the National Identity project.
    The benefit of the biometric exercise were listed to include helping boost Nigeria’s image internationally, deal with money laundering, deal with fraud, extend credit to people without worrying about where to find them and who they are.
    According to the CBN, the platform, when completed, would help operators and regulators of the financial system address issues of Know Your Customer (KYC), anti-money laundering (AML), and access to credit. This will help fast-track use of channels, such as biometric Automated Teller Machines (ATMs) and Point of Sale (PoS) terminals, among others.
    The CBN and NDIC want banks to shift focus from profitability alone and consider also other issues around sustainability, before lending.
    The United Nations Environment Programme (UNEP), through its UNEP Financial Initiative on the Environment and Sustainable Development at the Earth Summit in 1992, placed it as pertinent concern for financial systems across the world.
    It said sustainable banking in Nigeria, therefore, is focused on energising the influence of the banking sector (being financier of economic and social activities) towards transforming the longer term interest of environmental preservation and societal balancing into key parameters for allocation of capital.

    Oil companies
    The CBN said if the oil companies that degrade the environment and their cohorts in other sectors are starved of funds from both local and international banks, they will have no choice than to comply.
    For the apex bank, there is urgent need for a policy ensuring that people do not carry on their businesses in an environmentally unfriendly manner and get away with it. It said the agenda would be presented to the Bankers’ Committee to agree on the way it can be realised. The reason is that as an industry, banks cannot continue to take savings and deposits from Nigerians and then, lend to companies that are destroying the environment.
    “Why must Nigeria bring multinational oil companies to destroy our environment? How do we feel about it? They can get the funds and still use it in a responsible manner. I want to see more banks coming to identify with issues of sustainability and protection of the environment,” it said.
    The CBN said banks should not just look at profitability of lending decisions, but should also consider contributions of the borrower to the environment.
    For the regulator, competition in the sector has drastically risen, compared with what was obtainable in the 80s. It therefore admitted that the policy may be stalled by banks not wanting to lose businesses to competitors that care less about the environment, where a borrower has not adhered to set standards.
    It explained that global environmental impact of businesses, which are largely financed by the banking industry suggests that the sector has not given adequate attention to environmental impact of their funding activities. It said the tendency to view banking as an environment friendly business is commonplace as it seemed, on the surface, not to be harming the environment and society directly.

  • Naira may be devalued after 2015 elections, says economist

    Naira may be devalued after 2015 elections, says economist

    The naira may be devalued after the 2015 elections if there is “a significant drop” in the foreign reserves, an economist has predicted.
    Charles Robertson, the Global Economist of Renaissance Capital (RenCap), in a report titled: “Nigeria/Kazakhstan comparison and oil sales”, said: “Cumulative deterioration in the foreign reserves in 2013 and 2014 implies devaluation in 2015, after the selections.”
    Renaissance Capital is a financial intermediating and reserach firm.
    Robertson said though he was working on the assumption that there should be no devaluation in 2014, “there is a risk that the incoming Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, may devalue the naira, as Kazakhstan’s central bank governor did in coming to office in February 2007.
    He, doubted the devaluation taking place before the elections, saying such an action would be unpopular for an import-dependent nation.
    “We think a N160 to N170 to dollar target range is likely. One upside for the government from a weaker naira would be more naira from dollar oil tax revenue,” he said.
    The economist said foreign exchange reserves, which stood at $38 billion, would drop to $35 billion by the end of the year.
    He explained that if such a decline occurs, it would imply greater weakness of the naira than the current N164 to a dollar end-year assumption, but added that the Central Bank of Nigeria (CBN) would counter-act the position, by tightening monetary policy.
    “We assume foreign exchange reserves will fall from $44 billion in 2013 to $35 billion this year – a decline of $9 billion.That would imply greater weakness than our current N164 to a dollar end-year assumption. But we expect the CBN to counter-act this, by tightening monetary policy,” Robertson said.
    He said the last time the CBN devalued the naira was in 2011, following the $11 billion drop in foreign reserves.
    Robertson said: “We believe reserves will likely fall further in 2014 on the back of subpar oil production and higher imports due to election-related spending. We think the cumulative deterioration in Nigeria’s external position in 2013 and 2014 implies devaluation in 2015, after the elections; a devaluation before the elections would be unpopular for an import-dependent nation. We think a N160 to N170 to dollar target range is likely. One upside for the governent from a weaker naira would be more naira from dollar oil tax revenue.”
    The global economist explained that the CBN sees no obvious advantage for Nigeria from naira devaluation.
    Like Kazakhstan, Robertson said the naira has come under pressure recently from the US Federal Reserve’s tapering policy, and its current account surplus is likely to decline as imports rise in the run up to the February 2014 elections.
    The foreign exchange reserves last week, rose slightly to $38 billion, about $200 million higher than the $37.8 billion the previous week, data obtained from the CBN showed.
    The reserves had maintained steady decline in recent months after closing last year at $42.85 billion. The year-end figure represented a decrease of $0.98 billion or 2.23 per cent compared with $43.83 billion at end- December 2012. The reserves further dropped to $38.79 billion as at March 12. The reserves were at $42.77 billion on February 3, and dropped to $39.72 billion on March 3.
    Analysts said the reserves declined as imports of fuel and foods soared. But the CBN said the decrease was driven largely by the increased funding of the foreign exchange market in the face of intense pressure on the naira and the need to maintain stability.
    The CBN said the pressure on external reserves was deemed to be consistent with the seasonal annual payment of dividends to foreign investors.