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  • CBN raises interest rate to 12%

    CBN raises interest rate to 12%

    Four months after the Monetary Policy Committee (MPC) reduced interest rates, it has reversed its decision and increased Monetary Policy Rate or interest rates bank lend money to 12 per cent.

    Addressing reporters at the end of the two-day MPC meeting in Abuja yesterday, the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele said the Committee, after the assessment of the relevant internal and external indices, came to the conclusion that the balance of risks is tilted against price stability. The MPC therefore, he said, voted to tighten monetary policy.

    Based on this, the MPC raised MPR by 100 basis points from 11.00 per cent to 12.00 per cent; raised the Cash Reserve Ratio (CRR) by 250 basis points from 20.00 to 22.50 per cent; retained liquidity ratio at 30.00 per cent; and narrowed the asymmetric corridor from +200 and -700 basis points to +200 and -500 basis points.

    Before arriving at this decision, Emefiele said: “The bank had adopted accommodative monetary policy since July 2015 in the hope of addressing growth concerns in the economy, effectively freeing up more funds for DMBs (deposit money banks) by lowering both CRR and MPR, with excess liquidity arising from the lower CRR warehoused at the CBN.”

    Emefiele said the DMBs were to access these funds by submitting verifiable investment proposals in the real sector of the economy.

    He lamented that the funds have not impacted the market yet because the CBN was still processing some of the proposals submitted by the DMBs. In the first episode of easing which resulted in injecting liquidity into the banking system, DMBs did not grant credit as envisaged, Emefiele said.

    He said: “The delay in passage of the 2016 budget has further accentuated the difficult financial condition of economic agents as output continues to decline due to low investment arising from weak demand.

    “The cautious approach to lending by the banking system underpinned by a strict regulatory regime conditioned by the Basel Committee in the post-global financial crisis era has further alienated investors from access to credit as banks prefer to build liquidity profiles in anticipation of government borrowing.”

    The Committee noted that the sluggish growth in output was partly attributable to “certain fiscal uncertainties, which inadvertently hampered investment spending and flows; intermittent fuel scarcity, increased energy tariffs (without commensurate improvement in power supply), foreign exchange scarcity as well as slow growth in credit to private sector in preference to high credit growth to the public sector.”

    The MPC noted that many of these factors were outside the control of monetary policy, stressing that given these limitations, in the absence of complementary fiscal and structural policies, the only option was to continue with existing measures.

  • CBN warns banks against diverting N300b real sector fund

    CBN warns banks against diverting N300b real sector fund

    The Central Bank of Nigeria (CBN)  has warned banks against diverting the N300 billion Real Sector Support Facility (RSSF) loan.

    The CBN established the RSSF to stimulate growth, enhance value and engender productivity.

    But the regulator said some banks, which accessed the funds at one per cent interest rate for lending at nine per cent yearly, are not doing so.

    It suspects that some banks are not only diverting the loans, but also delaying the quarterly repayments remittance from beneficiaries.

    Part of the guidelines stipulates that banks process and forward requests for the facility from their customers to CBN.

    But CBN is worried that many of the lenders are breaching the guidelines, sometimes lending above the stipulated rates.

    CBN’s Development Finance Unit (DFU) warned that defaulting banks would be sanctioned based on their level of default.

    If a bank is involved in loan diversion, it  would be fined at the Monetary Policy Rate (MPR) plus two per cent of the outstanding amount.

    For quarterly defaults, the lending bank would be made to repay the amount outstanding in a fornight, or the CBN would debit it.

    Also, the apex bank said it would ensure that all repayments under the facility are amortised and quarterly principal repayments remitted to the Special Intervention Reserve (SIR) Account domiciled at the CBN.

    According to CBN Governor Godwin Emefiele, the RSSF is expected to support large enterprises for start-ups and expansion of the financing of up to N10 billion.

    “The real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors. The facility is expected to improve access to finance by Nigerian Small and Medium Enterprises (SMEs) to fast-track the development of the manufacturing, agricultural value chain and services sub-sectors of the Nigerian economy; increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis,” he said.

    The facility, which banks are accessing from the CBN, is to be channelled towards increasing credit to priority sectors of the economy with sufficient employment capabilities, high growth potential, increase accretion to foreign reserves, expand the industrial base and consequently diversify the economy. The RSSF is also to be used to support start-ups and expansion financing needs of enterprises.

    The intervention fund’s objective is to improve access to finance by the agricultural value chain, manufacturing, mining, solid minerals activities and other strategic sub-sectors of the economy.

    It is also part of the CBN’s agenda to increase output, create jobs, diversify the economy, increase accretion to foreign reserves and provide inputs for the industrial sector on a sustainable basis.

  • CBN Increases Interest Rate to 12% 

    CBN Increases Interest Rate to 12% 

    Four months after the Monetary Policy Committee (MPC) reduced interest rates, it has reversed its decision and increased Monetary Policy Rate or interest rates bank lend money to 12 percent.

    Addressing journalists at the end of the two days MPC meeting in Abuja Tuesday, the governor of the Central Bank of Nigeria (CBN) Mr Godwin Emefiele said “the Committee, in its assessment of relevant internal and external indices, came to the conclusion that the balance of risks is tilted against price stability. The MPC therefore, voted to tighten the stance of monetary policy.”

    Based on this, the MPC raise MPR by 100 basis points from 11.00 per cent to 12.00 per cent; Raise the Cash Reserve Ratio (CRR) by 250 basis points from 20.00 to 22.50 per cent; retain Liquidity Ratio at 30.00 per cent; and narrow the asymmetric corridor from +200 and -700 basis points to +200 and -500 basis points.

    Before arriving at this decision, Emefiele stated that “the Bank had adopted accommodative monetary policy since July 2015 in the hope of addressing growth concerns in the economy, effectively freeing up more funds for DMBs by lowering both CRR and MPR, with excess liquidity arising from the lower CRR warehoused at the CBN.”

    Emefiele noted that Deposit Money Banks (DMBs) were to access these funds by submitting verifiable investment proposals in the real sector of the economy.

    He however lamented that “the funds have not impacted the market yet because the CBN was still processing some of the proposals submitted by the DMBs. In the first episode of easing which resulted in injecting liquidity into the Banking system, DMBs did not grant credit as envisaged.”

    The CBN governor added that, “the delay in passage of the 2016 Budget has further accentuated the difficult financial condition of economic agents as output continues to decline due to low investment arising from weak demand.”

    “The cautious approach to lending by the banking system underpinned by a strict regulatory regime conditioned by the Basel Committee in the post global financial crisis era has further alienated investors from access to credit as banks prefer to build liquidity profiles in anticipation of government borrowing,” he said.

    The Committee noted that the sluggish growth in output was partly attributable to “certain fiscal uncertainties, which inadvertently hampered investment spending and flows; intermittent fuel scarcity, increased energy tariffs (without commensurate improvement in power supply), foreign exchange scarcity as well as slow growth in credit to private sector in preference to high credit growth to the public sector.”

    The Committee noted that many of these factors were outside the control of monetary policy and given these limitations, in the absence of complementary fiscal and structural policies, the only option was to continue with the existing measures.

    The MPC Emefiele said “believes that complementary fiscal and structural policies are essential for reinvigorating growth.”

    The Committee reiterated its commitment to maintaining a stable naira exchange rate stressing that it “ took note of the high level of activity in the autonomous foreign exchange market as well as the rising demand in the interbank market but observed that the data on demand for foreign exchange had become ‘very noisy’, being overshadowed by speculative demand.”

    However, the Committee charged the CBN “to speed up reforms of the foreign exchange market to improve certainty and eliminate noise and opportunities for arbitrage.”

    On the monetary front, Emefiele, said, “the wider economy appears starved of the needed liquidity to spur growth and employment. Recent performance of the monetary aggregates lends credence to this fact.  With the exception of credit to government, growth in all the monetary aggregates remained largely below their indicative benchmarks, yet; headline inflation spiked to 11.38 per cent in February 2016, substantially breaching the policy reference band of 6 – 9 per cent.”

    The increase in inflation he said “was driven not so much by liquidity, but by structural factors such as fuel scarcity, increased electricity tariff, persistent insecurity, exchange rate pass through and seasonality of agricultural produce.”

    Emefiele warned that “the conflicting signals from slowing growth and rising inflation present a difficult policy challenge.”

    The CBN governor noted the limitations of monetary policy in influencing the drivers of the current price spiral, which led the Committee to stress the need to urgently address the key sources of the pressures. In this regard, the Committee reaffirmed its commitment to closely monitor the development while working with relevant authorities to address the structural bottlenecks.

    The Committee also enjoined the relevant agencies to speed up passage of the 2016 Budget in order to halt the depressing effect of the uncertainty that engulfs the waiting period, hoping that the implementation of the budget would go a long way in boosting business confidence, and reinvigorating the financial markets. In the circumstance, the Committee urged the Bank to continue to upscale its surveillance of the financial system with the aim of promptly detecting and managing vulnerabilities to ensure sustained stability.

    When asked what will happen to the $20 billion in some individuals’ domiciliary accounts, Emefiele said the money was not sitting idle in the banks but were being used by the banks to fund assets on the other side of the balance shot and constitute a liability in the banks’ balance sheets.

  • FRC ignores CBN’s contributions to Corporate Governance Code

    FRC ignores CBN’s contributions to Corporate Governance Code

    The war between the Central Bank of Nigeria (CBN) and Financial Reporting Council of Nigeria (FRC) is far from over. The apex bank complained at the weekend that the Council did not consider its recommendations on the ongoing review of the National Code of Corporate Governance.

    In a circular signed by CBN’s Director, Financial Policy & Regulations, Kelvin Amugo, titled: ‘Exposure Draft of the National Code of Corporate  Governance Issued by the Financial Reporting Council of Nigeria,’ he said most of the CBN’s input/observations, submitted during the public hearing which it considered critical to the smooth operation of the banking industry were not considered in the released drafts.

    The FRCN, after a public hearing held on June 30, last year, released drafts on the National Code of Corporate Governance, for Private, Public Sectors as well as Not-for Profit Organisations, on December 29, 2015.

    The CBN said it also observed that other significant contributions from a number of banks and other financial institutions on the private sector code, were not also considered by the FRCN. “We advise on the need to ensure that relevant inputs that would enhance the status of the codes, as well as facilitate the efficient and effective operation of the financial system are factored-in by the FRCN before the codes are finalised,” he said.

    The apex bank is, therefore, asking banks “to forward their input and/or concerns on the National Corporate Governance Codes to the Director, Financial Policy and Regulations Department by March 29, 2016 to enable us articulate a common position for the banking industry and to engage with the FRCN in respect thereof.”

    FRCN Executive Secretary, Jim Obazee, had during the hearing explained that modern society believes that the era of very weak and persuasive corporate governance codes is long gone due to stiff competing environment for foreign direct investment; of which binding regulation is a major factor being considered by investors and stakeholders, hence the need for new code.

    He said provisions have been made for the development and enforcement of a National Code of Corporate Governance in the Financial Reporting Council of Nigeria Act No. 6, 2011.

    He said that Section 50 of the FRC Act, 2011 provides that the objectives of the Directorate of Corporate Governance shall be to develop principles and practices of corporate governance ; promote the highest standards of corporate governance; promote public awareness about corporate governance principles and practices; on behalf of Council, act as the national coordinating body responsible for all matters pertaining to corporate governance  and promote sound financial reporting and accountability based on true and fair financial statements duly audited by competent independent Auditors.

    Obazee said the Council shall enforce and approve enforcement of compliance with accounting, auditing, corporate governance and financial reporting standards in Nigeria.

  • CBN chief praises Zenith Bank’s support for non-oil export

    CBN chief praises Zenith Bank’s support for non-oil export

    Central Bank of Nigeria (CBN) Deputy Director, Trade and Exchange Department, W. D. Gotring has ranked Zenith Bank Plc high among non-oil export supportive banks.

    Speaking at international trade seminar organised by Zenith Bank Plc in Lagos, with theme: ”Exporting for growth: Opportunities in non-oil export”,  he called on the government and other stakeholders to diversify the economy from oil by growing the non-oil export segment of the economy.

    He also urged other banks to emulate Zenith Bank’s commitment to real sector development and non-oil segment of the economy.

    He, however, urged banks to deepen funding for non-oil segment of the economy to boost the volume of forex receipts and economic stability.

    Group Managing Director/CEO of Zenith Bank Plc, Peter Amangbo, expressed the commitment of the lender to build non-oil export service excellence in the trade and investment sectors. This, he said, would lead to stability and growth of the economy.

    He said Nigeria is faced with the task of improving its Balance of Trade (BoT) by focusing on the non-oil exports since the sharp drop in oil prices in the international commodities market opened up the vulnerability of the nation’s economy.

    For him, increasing the country’s non-oil exports will help the economy rebound, create jobs, engender long-term prosperity, support sustainable economical, social and environmental growth while contributing to the development of many states.

    “Zenith Bank will continue to make significant contributions in the non-oil sector. We are focused, will embrace and evolve solutions that facilitate non-oil export. We will do more to help manufacturers, farmers, and entrepreneurs sell made-in –Nigeria products and services globally to benefit the economy,” he said.

  • Can CBN tame the rising inflation?

    SIR: The Buhari-led administration appears to be doing a wonderful job fighting corruption. The last time this monster was tackled head-on in this country, was in 1984, by the same Head of State, Muhammadu Buhari.

    Then as now, the price of crude oil created the havoc. Then, as now, there were discordant views about whether or not the government should devalue the currency or not.

    Meanwhile, as the administration is focusing on the battle against corruption and on external affairs, there is no discernible policy direction of government with regards to the economy and there’s an overwhelming feeling among most informed that the economy is faltering at an alarming rate and a resignation that it might never get better than this without some sort of dramatic change.

    The government may pretend not know it but it is the reality on ground. Pure water sachet is now selling for N10 as against N5 in the North and N20 as against N10 in Lagos and places like Abuja; this is not because there are water shortages in the country, allegedly due to the cost of importing polyethylene, a raw material for making the sachet, which has shot up.

    Already, prices of consumer products and household items like mobile phones, electrical components and electronics have been inflated by over 20 percent, as such products are imported and assembled locally.

    Many economic experts and social commentators have said the current rate of rising inflation requires the CBN’s urgent attention because of its adverse effects on the economic well-being of the citizens.

    As industry observers worry on how long it would take for this inflationary trend to be halted, even a forlorn hope seems like a mirage, because there is no vibrant economic team to tackle these economic challenges and provide clarity and direction of economic policies. All we have is widening team of media foot soldiers who, for now, specializes in sustaining the sermons of melancholy inherited by the regime.

    Given that over-production and excess demand are the major causes of inflationary trends, the challenge before the CBN therefore is to grow the economy by ensuring reasonable growth for the real sector. This can be done with its monetary policy instruments, which experts say is necessary in employment generation, poverty reduction and sustainability of macro-economic growth rates and objectives of any serious government.

    Overall, the apex bank would need to reinforce its technical capacity for the analysis of monetary policy and a comprehensive toolkit for macro-economic projections in order to smoothly transit to a new framework.

    Recall that the Chairman of the US Federal Reserve Bank, equivalent to our CBN Governor, Dr. Arthur Burns, once said that ‘if a nation allowed an untenable economic situation to persist for too long, suddenly, there are no good options left’. Nigeria is slowly but surely approaching a situation where there are no good options left. Even now, the options have been reduced to few. But another delay will spell doom.

     

    • Aminu Imam,

    aminimam@gmail.com

  • Group accuses CBN, CPC of ignoring plight of bank consumers

    The chief regulator of commercial banks, the Central Bank of Nigeria [CBN] and the Consumer Protection Council [CPC] of Nigeria have been blamed for the various unauthorised deductions and fees levied bank consumers.

    These unjustifiable and unwarranted deductions from consumer accounts and fees that commercial bank consumers are forced to pay, according to speakers at a symposium organised by the Brand Journalists Association of Nigeria [BJAN] to commemorate the World Consumer Rights Day [WCRD] is because the CBN and CPC have failed in their responsibility of protecting consumers.

    At the one day event held at GRA, Ikeja, on March, 15th, the Keynote Speaker, Public Relations Guru, Mr. Adetokunbo Modupe, Chairman TPT International, said that “banks for reasons such as greed, moral and professional bankruptcy have often chosen to be the proverbial dogs eating the meat kept in their care.”

    This action, said the PR consultant, has had adverse implications for CBN’s programme of financial inclusion as well as the volume of money outside the banking system and the effectiveness of monetary policy implementation.

    Accusing the CBN of failing in its responsibility of protecting the banking public and the CPC of not showing interest in the plight of bank customers, Adetokunbo wondered if the “EFCC should intervene in the obvious financial infraction or should we go to church like we usually do to pray to God to save us from the evils of Nigerian banks.”

    Speaking further, he said that there have been many complaints by bank customers of unauthorised and illegal charges, “such fleecing of the customers has become the rule than the exception.

    “The excesses come under different descriptions such as management fees, processing fees, interest charges, commission on turnover, card maintenance fees, account maintenance fees, deposit, withdrawal and telephone alert fees, ATM fees. Even the recently introduced stamp duty charge has become another source through which they commenced overcharging their customers. In one transaction, some banks send more than two text message alerts and charge for each,” lamented the keynote speaker.

    He thundered that “it is a regime of cheating that must be stopped” while he recalled that last year alone, “CBN investigated over 6,000 complaints from bank customers and compelled banks to refund the sum of over N6.2billion to affected customers.”

    Sola Salako, President, Consumer Advocacy Foundation of Nigeria, regretted that the Nigeria bank system is not programmed to look out for consumers or to protect them despite the fact that we have a regulator.

    Reacting to the new proposed CBN charges on bank consumers, “It shows that CBN is insensitive to the plight of consumers. Despite mounting consumer complaints on charges CBN is proposing more charges to be levied on the banking populace.

    “Everywhere in the world, when you automate a system, it becomes cheaper but not so in the Nigeria banking industry,” added the CAFON president.

    Speaking on the theme of the symposium, ‘Banking in Nigeria: Developments and Customer Challenges’, Mr. Goddie Ofose, BJAN national chairman, said it was chosen “as a result of the imbalance and accusation of consumer rights abuse against the players in the financial sector.”

    The BJAN national chairman urged consumers to begin to make leaders accountable, especially the regulatory agencies whom he pointed out are regulating without any one regulating them.

    “All of us should begin to work as campaigners against consumer right abuse,” advised Mr. Ofose while also stressing that “we should assist government by educating consumers on their rights and consumers too should always summon the courage to make complaints where and when necessary.”

    Furthermore, he called on regulatory agencies to work together “for instance, through collaboration between CPC and CBN or NAFDAC and CPC a lot could be achieved to save Nigerian consumers.”

    However, Mr. Uju. M. Ogubunka, the President, Bank Customers Association of Nigeria [BCAN], said the blame of the various abuses that the banking public are getting from banks should be passed to everyone and not just the regulatory agencies.

    “The problem is not about banks but consumers. How many of us know our rights? Many consumers do not know there is even a guide to bank charges. We are to blamed for being ignorant.”

    Cautioning people not to pass all bank customers woes on CBN and to refrain from making uninformed remarks on the issue he said “Banks may not have met all our needs but they are doing a lot. If other sectors in Nigeria can do half as what the banks are doing then we will have a better society.”

    He urged consumers to seek for more knowledge “as self protection is the greatest protection one can give to himself.”

    Noting the five new charges that the CBN is proposing to introduce, the president, BCAN, called on all consumers to familiarise themselves with the charges now and speak out concerning the charges.

    “Every bank consumer has the opportunity to speak and voice their resentments about the charges before they are implemented. CBN made it open for consumers to react to them before a final decision is taken on them. It is our responsibility to advice CBN when it is not getting it right and encourage when is doing a great job.”

    Meanwhile, CBN is proposing the introduction of five new charges on bank customers. These charges include a N50 charge on every cheque leaflet obtained and used at deposit money bank’s counters, A N100 per month maintenance charge on every debit [ATM] card. This is separate from the existing N65 charge after the 3rd withdrawal within the same month. If the card is not used in a month, N50 will be deducted.

    The regulatory body is also proposing a N4,200 per month charge on foreign currency denominated cards as maintenance fee. It is proposing a charge of a N100 on form A, which is used by students to apply for forex on school fees, medical bills and travel allowances.

    Also form M, which is predominantly used by manufacturers to import goods not on CBN prohibition list, is proposed to henceforth cost N1,000 in addition to maintenance fee on e-form platform in line with CBN directive.

  • Reps to probe CBN over secret recruitment

    Reps to probe CBN over secret recruitment

    • Move to scrap People Bank

    The House of Representatives is to ivestigate the Central Bank of Nigeria (CBN ) over its last workers recruitment exercise.

    The lawmakers said due process was not adhered to in the exercise, saying it was lopsided with some sections of the country being unfairly disadvantaged.

    House Committees on Banking and Currency and Federal Character were mandated to investigate and report back within four weeks.

    The decision of the lawmakers followed the adoption of a motion of urgent public importance by Ali Madaki  (APC, Kano ), who regreted that CBN deliberately breached the Federal Character principle by carrying out the recruitment in secret without advertisements.

    According to him, the secret recruitment has generated negative reactions from several sections of the country with accusations of lopsidedness.

    “Sometime last year when members of the public got wind of the secret recruitment exercise, the CBN came out and outrightly denied any such recruitment, or plan to recruit.

  • CBN: prospects of non-oil sector high

    CBN: prospects of non-oil sector high

    The opportunities present in agricultural, solid minerals and the creative industry sectors of the economy have made the prospects of non-oil economy great, Central Bank of Nigeria (CBN) Governor, Godwin Emefiele has said.

    Speaking yesterday at the maiden edition of the New Telegraph Economic Summit on the theme: ‘Returning Nigeria to the Boom Days: Prospect of a Non-Oil Economy’, he said the country is endowed with abundant arable land capable of supporting all-year-round production of a wide variety of both cash and food crops, livestock and forestry.

    He said: “By its geographical location along the coast of the Atlantic Ocean, and myriads of water-ways, it has huge potentials for fish production to meet domestic need and surplus for exports in a global fish market valued at $144.0 billion in 2014. In the solid minerals sub-sector, there are at least 44 known mineral assets notably gold, iron ore, bauxite, bitumen, lead, zinc, tin and coal, which have been identified for commercial exploration. Solid minerals contributed an estimated N400 billion to the economy in 2015.”

    He said Nigeria’s creative industry driven by Nollywood, produces about 50 movies per week, second only to India’s Bollywood and ahead of Hollywood, and currently provides employment for over one million people.

    This makes it Nigeria’s largest employer after agriculture. In 2013, the creative industry contributed 1.4 per cent to Gross Domestic Product and was rated the third most valuable film industry in the world, generating revenue of N1.72 trillion.

    Emefiele said the task of returning the non-oil economy to its glory days is possible but would require the creative energies of all stakeholders, government at all levels, the private sector, the press and indeed, the citizenry.

    Minister of Solid Minerals Development, Kayode Fayemi said Nigeria has remained a mono product economy, with crude oil contributing 80 per cent to foreign exchange earnings. He said now is the right time to diversify the country’s economy base, adding that mining and agriculture are expected to drive solid minerals sector.

    Fayemi said there is no law stopping state governments from being involved in the inning sector. “The state governments can develop Special Purpose Vehicles to drive the mining sector. Nigeria still remains a Greenfield in mining.

  • Reps to probe CBN over secret recruitment 

    Reps to probe CBN over secret recruitment 

    The House of Representatives is to investigate the Central Bank of Nigeria (CBN ) over its last staff recruitment exercise.

    The lawmakers said due process was not adhered to in the exercise said to be lopsided with some sections of the country unfairly disadvantaged.

    House Committees on Banking and Currency and Federal Character were mandated to investigate and report back within four weeks.

    The decision of the lawmakers followed the adoption of a motion of urgent public importance by Ali Madaki  (APC, Kano ), who regretted that CBN deliberately breached the federal character principle by carrying out the recruitment in secret without advertisements.

    According to him, the secret recruitment has generated negative reactions from several sections of the country with accusations of lopsidedness.

    “Sometimes last year when members of the public got wind of the secret recruitment exercise, the CBN came out and out rightly denied any such recruitment or plan to recruit

    “But what do we have now, findings have shown otherwise coupled with the fact that principle of federal character, equity and justice was ignored,” he said.

    The motion was unanimously adopted after it was put to a voice vote by the Speaker, Yakubu Dogara.

    In another development, the House has set motion the process of scrapping the Peoples Bank of Nigeria (PBN).

    This followed the second reading of the bill sponsored by Goni Lawan (APC, Yobe ).

    Goni and other proponents of the bill said the bank was of no economic or financial benefits to Nigerians any more since it ceased to exist with its merger with some other banks.

    On the other hand, the opponents of the bill opined that rather than being scrapped, government should find means of repositioning it since its mandate was to serve the downtrodden who could not access money deposit banks for soft loans.

    The bill however went through after it was put to a voice vote by the Speaker, Yakubu Dogara.