The Nation Newspaper

Tag: cbn

  • CBN lifts forex market with $195m

    CBN lifts forex market with $195m

    The Central Bank of Nigeria (CBN) yesterday intervened in the foreign exchange (forex) market with a  $195 injection into key segments of the economy.

    The forex inflow, which came on the first day of business after the Eid-el-Fitr celebration, went to various segments of the inter-bank market.

    The intervention was part of CBN’s plans to shore up the value of the naira against the dollar and achieve its exchange rate stability goal. The naira continued its stability in the forex market, closing at N370/$1 in the parallel market, from N520/$1 in February.

    The narrowing of rate gap was achieved after the CBN in the last four months pumped over $5 billion into the interbank, bureau de change, wholesale spot and forwards auction segments of the market.

    Also, supporting the naira is the newly introduced Investor/Exporter Forex window which has attracted $2.5 billion from foreign investors since April 24, when it was introduced.

    Analysts said the introduction of a new foreign exchange window for investors and exporters targeted at increasing forex supply in the market and allowing the timely settlement of transactions helped achieve the current exchange rate.

    A breakdown of Wednesday’s intervention indicates that authorised dealers in the wholesale window segment received a $100 million offer from the bank. Small and Medium Enterprises (SMEs) and invisibles windows were allocated $50 million and $45 million.

    The CBN has been intervening on the official market in the last few months to narrow the spread between rates on the official market and black market.

    The naira came close to converging at the investor foreign exchange window and black market last Friday, with analysts attributing the development to increased dollar liquidity in the forex market.

    The naira was quoted unchanged at N370 per dollar at the black market.

    Commercial lenders are yet to put up a quote on the interbank market. The naira closed at N305.85 to the dollar on the interbank window on Friday.

    Nigeria is contending with a currency crisis brought on by low oil prices, which has tipped the economy into recession and created chronic dollar shortages. The CBN is keen on attracting foreign investors and at the same time maintaining a strong currency to ward off inflation.

    It has at least six exchange rates, including a retail rate set by licensed exchange bureaux, official and black market rates and a window for investors where the naira can be traded at rates set freely between buyers and sellers.

    The CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the figures and disclosed that the Bank was impressed by the high level of transparency exhibited by stakeholders in the market.

    The CBN had last Friday allocated $240 million to the Retail Secondary Market Intervention Sales (SMIS) for spot and forward deals. With the rate of inflation dropping from its April 2017 figure of 17.24 per cent to 16.25 per cent at the end of May, 2017, the CBN spokesman says the CBN remains upbeat that the fortune of the naira will improve further in the months to come.

    But JPMorgan Chase & Co. and Renaissance Capital have said the naira rally, sparked by increased sales of foreign exchange forwards and looser capital controls, is contingent on the CBN continuing to sell down its foreign reserves.

    Nigeria’s gross external reserves have continued to drop as the CBN intensify interventions in the forex market. According to CBN data, the reserves fell from $30,291,917,668 on June 7 to $30.2 billion on June 16.

    The reserves had decreased by 1.19 per cent ($37 million) to $30.49 billion as at May 25 from $30.86 billion recorded at the end of April.

  • CBN to raise N177b via Treasury bills auction

    CBN to raise N177b via Treasury bills auction

    The Central Bank of Nigeria (CBN) is planning to raise N177 billion ($562 million) of short-dated treasury bills at an auction on July 5, the regulator said yesterday.

    The bank said in a public notice it planned to sell N35 billion of three-month debt, N22 billion of six-month bills and N120 billion of one-year notes at the auction, using a Dutch auction system.

    The CBN issues treasury bills twice a month to finance the budget deficit, help manage commercial lenders’ liquidity and curb rising inflation.

    The West African country expects its budget deficit to widen to N2.36 trillion this year as it tries to spend its way out of a recession, with more than half the deficit to be funded through local borrowing.

    The apex bank has in the last two months, issued short-dated treasury bills to mop-up what it perceived as excess liquidity and curb speculation on the local currency.

    Nigeria expects to face a budget deficit of about N2.21 trillion for the year as it tries to wriggle its way out of recession. It expects to raise money to cover more than half the deficit through domestic borrowing.

    The bills’ maturities range between three months and a year and would be raised today, according to the CBN. They are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.

    The CBN issues treasury bills to raise cash to fund the government budget deficit, helps manage banking system liquidity and curbs rising inflation.

    The CBN on August 3 last year, raised N245.18 billion ($773.44 million) worth of T-bills to settle short-term obligations. It also issued N45.18 billion in three-month debt, N80 billion of six-month paper and N120 billion of one year bills in a Dutch auction, Treasury Bills traders said.

  • CBN educates Lagosians on intervention policies

    The Central Bank of Nigeria (CBN) has enlightened Lagos residents on its various interventions programmes meant to stimulate the economy and boost people’s living standard.

    The programme with the theme: “Promoting financial stability and economic development”, also focused on enlightening the public about their rights and privileges in their customer relationship with their banks.

    CBN’s Deputy Director, Trade and Investment Department, Olu Vincent, said: “It is sensitisation of the general public on what the CBN has been doing over the past two years to stimulate the economy and produce economic development since the volatility in the oil price market, to galvanise economy from the oil to non-oil export which everyone is clamouring for that we should lay more emphasis on non-oil export.”

    He explained that there are various interventions, which the CBN has put in place as part of the proactive measures of the bank in stimulating growth of the economy.  “What we are doing for now is to let the public know various policies they can leverage for economic growth. We have interventions for real sector, power sector, aviation sector and agric sector among others,” he said.

    The apex bank Assistant Director, Currency Operations Department, Benedict Maduagwu, spoke on the need for the public to respect the naira because it costs so much to print a single note.

    “It is a crime to hawk naira. The CBN stands on hawking naira is that if you hawk naira and you are caught abusing it, you will pay a fine of N50,000 or six months imprisonment or both,” Maduagwu said.

    Speaking at the sensitisation fair, the bank’s principal manager, consumer protection department Oludamola Atanda,  informed participants of their rights and responsibilities, which include the right to demand from their banks information that would help them run their accounts.

  • $1.2b Etisalat loan: CBN, NCC wade in to save jobs

    $1.2b Etisalat loan: CBN, NCC wade in to save jobs

    The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) are collaborating to save telecommunications giant Etisalat from going under on account of the $1.2 billion controversial syndicated loan owed a consortium of 13 local banks.

    The regulators’ intervention is aimed at saving the jobs of the over 4,000 workers employed by Etisatat and prevent asset stripping.

    Spokesman for the apex bank, Isaac Okorafor, said yesterday that the debt problem was a delicate one requiring the intervention of the CBN and the NCC.

    “Although it should ordinarily not be the role of a regulator to decide how individual bad loans are resolved, the CBN believes that Etisalat is a systemically important telecommunications company with over 20 million subscribers that if not well handled, may have negative implications for the banking system itself,” he said.

    He said the regulating agencies reached an agreement to intervene and implore the consortium of banks to reassess their position in dealing with Etisalat.

    He said the CBN and the NCC would soon meet with the creditor banks and the IHS Towers, the tower managers and the equipment suppliers, for the purpose of achieving what he termed “a win-win outcome” for all stakeholders.

    The consortium of banks had, earlier yesterday, called off further talks with the NCC on the loan issue.

    The banks gave no reason for their action which was scheduled for yesterday morning.

    They had planned to take over Etisalat by 5 o’clock last night.

    The commission’s Director of Public Affairs, Mr Tony Ojobo, told The Nation on the phone that the management of the NCC was waiting for the representatives of the banks for further discussion on the way out of the crisis, only for one of their representatives to call to say they were no longer coming.

    Asked whether a new date had been fixed for further talks, Ojobo answered in the negative.

    He, however, explained that the management of the NCC was open to further discussion on the matter.

    He said: “The only update on this issue is that we were to have a meeting with them today  (Friday), but they called to say they would not be able to come for the meeting.

    “We are open to further talks and discussion on this matter, but as it is, since they are not coming for the meeting, we are waiting to see what will happen.

    “If they said they are taking over Etisalat by today, it does not mean that they possess the licence. We have made our position known as a regulatory body that the licence is not transferable.”

    The NCC had, in a statement, maintained during the week that it was aware of the indebtedness of Etisalat to the consortium of banks, but stressed that the development would not prevent subscribers from enjoying the services provided by Etisalat as it was working to ensure that the issues were resolved.

    It also drew the attention of the banks to the provisions of the Nigerian Communications Act (NCA) 2003 Section 23, sub section 1 : that the grant of a licence shall be personal to the licencee and the licence shall not be operated by, assigned, sub-licensed or transferred to another party unless the prior written approval of the Commission has been granted;

    Sub Section 2 that: a licensee shall at all times comply by the terms and conditions of the licence and the provision of this act and its sudsidiary legislation.

    Etisalat is embroiled in a loan repayment stalemate with a consortium of 13 Nigerian banks that gave it a facility of about US$1.2 billion.

    The  company has been unable to meet its repayment obligations in line with agreed terms of the facility.

    Given the inability of Etisalat to come to an acceptable agreement with the banks, the largest shareholder in the company, Dubai-based Mubadala Development Company of the United Arab Emirates, has now pulled out of the company as well as the ongoing negotiations, leaving only their local partners led by Hakeem Belo-Osagie, to carry the burden.

  • CBN, EFCC set to probe banks over kidnap kingpin’s deals

    Some commercial banks allegedly used by billionaire kidnapper, Chukwudubem Onwuamadike  (aka Evans), for ‘business’ transactions may be questioned by the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC), The Nation has learnt.

    The names of the banks and their levels of involvement will be determined by the investigators.

    The lenders will be investigated for possible money laundering and failure to report suspicious transactions.

    The investigation, The Nation learnt, will ascertain whether the lenders followed the Nigerian Financial Intelligence Unit (NFIU) reporting guidelines in filling reports, observed Customer Due Diligence (CDD) and followed Know Your Customer (KYC) directives of the CBN on account opening.

    The NFIU is expected to receive mandatory disclosures by financial institutions and any other individual (voluntarily) – related to single transaction, lodgment or transfer of funds in excess of N5, 000,000 or N1, 000,000 by an individual and N10, 000,000 or N5, 000,000 by a corporate entity as provided Section 10 (1) and (2), MLP Act.

    When contacted, CBN spokesman, Isaac Okorafor, said: “We have nothing to say”.

    But speaking on the development, Information Officer, Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), Timothy Melaye, said the levels of penalty to be faced by the banks, if found culpable, will depend on the volume and nature of such transactions.

    He said investigators will have to establish if the lenders failed to follow regulatory guidelines, before they are declared liable.

    Melaye told The Nation that banks should do more to ensure that they understand their customers’ businesses better, saying Nigeria has taken the right step, including the establishment of a legal and regulatory framework that will assist GIABA to meet its anti-money laundering initiatives.

    The GIABA works closely with the CBN, National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC) and Special Control Unit against Money Laundering (SCUML) to check money laundering.

    He said money laundering or terrorist financing remain global crimes.

    “When HSBC was found guilty of a ‘blatant failure’ to implement anti-money laundering controls and willfully flouted US sanctions, American prosecutors, the bank was forced to pay a record $1.9 billion to settle allegations it allowed terrorists to move money around the financial system. I know for Nigeria, the fine will not be that much if the banks are found guilty, but it will be substantial,” he said.

    Melaye advised banks to report suspicious transactions by customers to the NFIU as well as observe CDD to avoid penalties.

    He said GIABA, as part of its regulatory mandates, works closely with all the core regulators of financial, other-financial institutions and designated non- financial businesses and professions.

    Former President, Chartered Institute of Bankers of Nigeria (CIBN), Okechukwu Unegbu, said the banks have a responsibility to report suspicious transactions to the NFIU  and copy the CBN in the report.

    “The banks have the obligation to report suspicious transactions to the NFIU and copy CBN. But sometimes the NFIU looks the other way and do nothing about such reports. These are the things the investigators will try to unravel and punish violators,” he said.

    Part of the NFIU reporting guideline requires that any transaction, particularly in the receipt of international transfer of funds and securities exceeding $10,000 or naira equivalent, must be reported to the NFIU as required by Section 2 (1) of the Money Laundering Prohibition (MLP) Act.

    The NFIU has the responsibility to receive reports on currency transactions; suspicious transactions; currency declaration and other information relating to money laundering and terrorist financing activities from financial institutions and designated non-financial institutions (DNFIs). The body is also expected to receive reports on cross-border movement of currency and monetary instruments.

    The Act stipulates that: The Suspicious Transaction Reports mentioned under Section 6 (2) of the MLPA 2011 shall be reported by financial institutions exclusively to the NFIU to aid intelligence gathering and in line with Financial Action Task Force (FATF) 2012 Recommendations 20 and 29.

    Declaration of more than $10,000 or its equivalent made to the Nigerian Customs pursuant to the Foreign Exchange Act, 1995 and Section 2 (3) of the MLP Act, 2011 as amended.

     

  • CBN’s plan to liberalise naira excites investors

    CBN’s plan to liberalise naira excites investors

    Ongoing plans by the Central Bank of Nigeria’s (CBN’s) to free up the naira, particularly via a new trading window, have gone down well with some adventurous stock and bond investors who are cautiously returning to the markets they fled two years ago.

    Once considered one of the most promising emerging markets, Nigeria was affected when it introduced some foreign exchange restrictions to counter the effects of the 2014 oil price crash.

    These will take years to unwind, some analysts fear, while others are concerned the new trading facility could come under pressure if oil prices were to take another tumble, or trade through it could slow if Nigeria’s currency reserves run low.

    The much-criticised move starved the economy of dollars, throttled foreign investment and plunged Africa’s largest economy into recession for the first time in more than 25 years.

    But authorities told Bloomberg that since tried to normalise the currency market and alleviate dollar shortages, most recently via the “Investors & Exporters FX Window”, which allows investors and traders to swap nairas for dollars at market-determined rates.

    The new window adds to a confusing array of exchange rates. But it does seem to be succeeding in luring back some foreign funds, especially as the economy should return to growth soon and inflation is finally slowing. “It is a very good thing. Obviously having multiple exchange rates is not an optimum situation yet, but it is moving towards a more realistic exchange rate,” said Oliver Weeks, economist at hedge fund Emso Asset Management. “This certainly makes the country more interesting.”

    Under the new system, in place since April, the opening and closing naira/dollar rates are determined by a poll of authorised bank dealers. The NAFEX or Nigerian Autonomous Foreign Exchange Rate Fixing is set around noon and serves as a benchmark for derivatives such as forwards and futures. Weeks said Emso has used the new mechanism successfully several times in the past six weeks.

  • NCC, CBN wade into Etisalat debt crisis

    NCC, CBN wade into Etisalat debt crisis

    In Order to find a resolution to the debt crisis troubling Etisalat Nigeria, a meeting between the officials of the company, Nigerian Communications Commission (NCC), the Central Bank of Nigeria (CBN) and a consortium of banks has reportedly been scheduled for today.

    According to NCC, the consortium of banks seeking to take over Etisalat Nigeria over the protracted $1.72 billion debt impasse must first cross some regulatory hurdles.

    Elsewhere, Reuters quoted an official of Etisalat Nigeria as saying that discussions with the group of Nigerian commercial lenders are ongoing to find a “non-disruptive” solution to the debt.

    The source further said that several meetings were ongoing at the NCC and the CBN after talks between about 10 Nigerian banks and Etisalat Nigeria broke down.

    The source also confirmed that part of the $1.2billion bank credit obtained by Etisalat Nigeria has been paid back since 2013 when the loans were first structured.

    Etisalat of the UAE, which currently holds 45% of Etisalat Nigeria announced at the Abu Dhabi Stock Exchange this morning that attempts to stave off the company’s takeover has proved abortive and the lender banks are closing in to take over following default in loan facility agreements with the consortium of banks in Nigeria.

    Serkan Okandan, Chief Financial Officer of Etisalat Group, who issued the announcement by the UAE mobile phone group, and operators of the Etisalat Nigeria said that both parties have reached a deal to commence transfer of ownership to the banks by 5.00pm on Friday, June 23, 2017, a development that has since sparked concerns over the future of the mobile phone company.

    But Tony Ojobo, spokesman of the NCC drew the attention of the lender banks to the Section 38 and Sub section 1 of the NCA which spells out that, “The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sublicensed or transferred to another party unless the prior written approval of the commission has been granted.”

    Ojobo, said that the lender-banks must take note of relevant provision of the Nigerian Communications Act (NCA) 2003 as well as relevant provisions of the laws guiding the transfer of licences issued operators by the telecoms regulator.

    According to the NCC, Sub-Section 2 of the same provision equally states that, “A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.”

    Ojobo, who said that NCC is aware of the indebtedness of Etisalat Nigeria to the consortium of banks says that the telecoms regulator and its banking counterpart, the Central Bank of Nigeria (CBN), “mediated by holding several meetings with the banks, Etisalat and other stakeholders with a view to finding a resolution.”

    Despite the efforts of the two industry regulators of Federal Government, “regrettably these meetings did not yield the desired results”, he said.

    “The NCC wishes to reassure the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator”, according to the telecoms regulator.

    According to Ojobo, “the Commission has taken proactive steps to cushion the impact of the takeover, this is without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement.”

    “Whilst the banks and Etisalat are working at resolving the issues, the Commission wishes to assure subscribers that they will continue to enjoy the services provided by Etisalat”, Ojobo added.

    According to him, “in view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector, in particular, the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised.”

  • CBN to de-risk housing finance under ‘My Own Home’

    A scheme aimed at inspiring  the younger generation of Nigerians to key into mortgage process, immediately after  they begin work or business, has been initiated. The scheme will also give fresh hope to more Nigerians to own homes with ease.

    This is coming with the commencement of the Federal Government’s housing initiative tagged: ‘My Own Home.’

    The scheme is an offshoot of the Nigeria Housing Finance Programme (NHFP) being implemented by the Central Bank of Nigeria (CBN), with the support of World Bank’s $300 million loan, on behalf of the Federal Government.

    It is hinged on the government’s plans to introduce a public-private partnership (PPP) initiative aimed at increasing access to housing finance through mortgage guarantee insurance and microfinance scheme.

    Explaining the modus operandi of the scheme, CBN’s Head, Project Administration Team of the NHFP, Mr. Adedeji Adesemoye, said the objective of the scheme is to catalyse the growth of the housing sector through de-risking the housing finance value chain and improving access to finance.

    “We need to educate our people that owning a home with a mixture of equity and debt is not a negative thing; having a home that you will live in the next 50 years does not require you to spend all your life savings,” explained Adesemoye.

    To this end, eight micro finance banks (MFB) have been selected to mobilise housing finance for low-income earners in the formal and informal sectors of the economy. The eight MFB are expected to facilitate access to flexible housing finance for low-income earners for incremental construction or home improvement. This, Adesemoye further explained, could either be financing to buy a piece of land for building or laying foundation on an existing land and commencement of building stage by stage.

    “After every stage of building, and with a good history of repayment, the microfinance bank keeps financing the customer until the building is completed. This housing microfinance is not for the purchase of homes. This scheme is similar to our traditional sense of incremental construction. This initiative will make it possible for a homeowner to stretch his building plan in such a way that he takes different tranches of loan as he builds,” Adesemoye explained.

    To execute this task, the selected MFB will benefit from a $15 million technical assistance from the World Bank’s $300 million housing loan. LAPO Microfinance Bank is already being used as a pilot for the scheme based on its antecedent in the mortgage sector.

    Adesemoye, who spoke with The Nation Property in Lagos, disclosed that the CBN is already in partnership with the Frankfurt School of Management and AFC Consultants International, Germany for technical assistance.

    Through NHFP, government is creating the enabling environment for strengthening the nation’s housing sector by setting up sustainable framework by mortgage originators to access long-term refinancing. The new scheme is expected to scale up mortgage and housing finance awareness.

  • CBN engages Ogun farmers, SMEs on financial inclusion

    CBN engages Ogun farmers, SMEs on financial inclusion

    The Central Bank of Nigeria (CBN) has engaged farmers and Small and Medium Enterprises (SMEs) in Abeokuta, Ogun State on financial inclusion initiatives.

    The exercise was in continuation of the apex bank’s enlightenment campaign, aimed at bringing more people into the formal financial sector.

    The apex bank used the opportunity provided by the financial inclusion fair to educate participants on its numerous real sector intervention programmes.

    These programmes the bank said were geared towards enhancing the wellbeing of Nigerians and promoting economic development in general.

    CBN’s Deputy Director, Consumer Protection Department, Hajia Khadijah Kasim said the bank took its enlightenment campaign to the ancient city of Abeokuta in order to inform the people about its activities, interventions and recent developments in the financial system.

    Speaking on the theme: Promoting Financial System Stability and Economic Development,  she said: “We want to interact with you one on one. The bank’s officials are here to talk to you about rights and responsibilities of bank customers, how we can lodge complaints to CBN if we have issues with our financial service providers.

    “You will also be informed about different efforts of the CBN to ensure that every Nigerian is financially included, so that all of us can enjoy enormous opportunities that abound in this space.”

    The Abeokuta branch controller of CBN, Babatunde Amao called on the farmers and SME operators to make constructive criticisms and suggestions that could serve as useful contributions towards pulling the country out of recession.He said the CBN recognises the importance of the city, and the fact that Abeokuta is home to most prominent Nigerians some of whom are dead and some are still living.

    A senior manager in the development finance department of CBN, Xavier Okon, explained to participants that the apex bank helps to solve the problems most businesses face in Nigeria, especially that of long-term financing needs which commercial banks cannot meet because their funds are mainly short term in nature.

  • CBN: $2.2b foreign capital inflow boosts equities

    CBN: $2.2b foreign capital inflow boosts equities

    The Central Bank of Nigeria (CBN) has linked the current upbeat performance in the Nigerian Equities market to the inflow of $2.2 billion foreign capital from portfolio investors.

    The cash came in through the special Investors/ Exporters (I&E) Forex Window launched last April, according CBN Director, Banking Supervision, Abdullahi Ahmad.

    The creation of the special window is to attract foreign portfolio investment in the equities market.

    Ahmad said investor sentiment towards equities has remained bullish since the introduction of the I&E Forex window.

    The CBN director was optimistic that the new forex window would continue to attract foreign investors to the economy with the equities market and naira the biggest beneficiaries.

    Under the former dispensation, uncertainty about availability of forex, coupled with some tough fiscal policies in the year, were largely blamed for investors’ lack of confidence to invest in equities.

    Between January 4 and June 9, 2017, the Nigerian Stock Exchange, mirrored by the All-Share Index and Market Capitalisation had appreciated by 23.8 per cent and 24.4 percent respectively. Both indices had opened the year for trading with 26,874.62 bases points and N9.247 trillion and grew to 33,276.68 bases points and N11.504 trillion within the period under review.

    Last week alone, the All Share Index gained 1.6 per cent to close at 33,810.56 points, pushing year-to-date gain to 25.8 per cent. Accordingly, investors gained N187.9 billion within the week as market capitalisation improved to N11.7 trillion.

    Managing Director, Afrinvest West Africa Limited, Ike Chioke although optimistic that the upbeat market performance would persist in the near term as investor sentiment remains largely driven by strengthening macroeconomic fundamentals and forex management, he believes there  could be  some profit taking by investors on value stocks in the early trading sessions of this week.

    However, Currencies Analyst at Ecobank Nigeria, Olakunle Ezun, is of the view that the gains seen in the equities market are just unfolding.

    Many investors with foresight, according to him, will continue to take advantage of low prices of quoted stocks and make more investments to maximise returns, thereby triggering further market rally.

    He says as long as the I&E Window remains active, and the CBN continues to intervene in the forex market, the rally in the equities market will persist.

    The CBN has, since February this year, injected more than $5 billion into the interbank market, to boost dollar liquidity and strengthen the naira. That dollar inflow has also helped build more confidence in the equities market, Ezun said.

    The apex bank increased the availability of forex in order to ease the difficulties encountered by Nigerians in obtaining funds for Foreign Exchange transactions. The regulator is providing direct additional funding to banks to meet the needs of Nigerians for Personal and Business Travel, Medical needs, and School fees, effective immediately.

    Part of the market upbeat has been linked to payment of impressive dividends by banks to shareholders, and that has attracted more investments.  For instance, Shareholders of Access Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc and Zenith Bank Plc, reaped the benefits of their investments as the four banks gave out a total of N168.29 billion as dividends for the 2016 financial year.

    However, Chioke said of particular concern is the renewed volatility in oil prices and significant spread between interbank and the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) exchange rates.

    The NAFEX, which is a polled rate derived from FX rates submission, from a selection of Authorised Dealers participating in the I&E FX window

    He said the volatility makes the recent recovery in the forex rate fragile until a large depreciation is effected in the Interbank market to converge to autonomous market rate. “However, devaluing interbank rate is a political decision as much as it is a monetary policy one, as petroleum product prices are correlated to interbank exchange rate. Thus, we do not expect any changes in monetary policy or market interest rates in the near term until a convergence in exchange rates and sustained stability in core prices,” Chioke said in an emailed report.

    Analysts said that given the huge loses investors had suffered since recession started, there have been efforts to ensure that the market recover quickly. In this regard, regulators such as the Securities and Exchange Commission (SEC), the CBN and the Nigerian Stock Exchange (NSE) have been strengthening the regulatory frameworks to encourage and reassure stakeholders. They also insist that the sustainability of the market depends on whether the CBN will sustain its forex intervention policy.