The Nation Newspaper

Tag: cbn

  • $40b drained from External Reserve in 10 years, says CBN

    $40b drained from External Reserve in 10 years, says CBN

    • N1.3tr injected into real sector

    The Central Bank of Nigeria (CBN) has lamented that about $40 billion was depleted from the nation’s external reserves in 10 years due to the taste for imported goods by Nigerians.

    To stop bleeding  the external reserve, the CBN has urged Nigerians to begin to process raw materials so as to get more value and earn more foreign exchange.

    According to the CBN governor Mr Godwin Emefiele, “exported raw materials such as crude, wood, cocoa amongst others whose end products are later imported, are being sold cheaply and bought back at more expensive rates.”

    He said the level of the external reserve will be significantly beefed up if fuel which takes up 20 per cent of Nigeria’s import bill is locally produced.

    Defending the decision of the CBN to support the real sector, Emefiele said the apex bank “is convinced that the sector has sufficient employment capabilities, high growth potentials, contributes significantly in accretion to foreign reserves, expands the industrial base and diversify the growth potentials of the economy.”

    Emefiele said Nigerians must, by now have been tired of hearing people talk about the potentials of Nigeria, adding that now is the time to live that dream. “ We can achieve our goals and give Nigerians the chance to live longer, better and more fulfilled lives,”he said.

    To make this possible, the CBN governor appealed “to Nigerians to patronise locally made products to encourage the manufacturers to remain in business, interventions by the bank are centered around agriculture, Micro, Small and Medium Enterprises (MSMEs) and Infrastructure intervention.”

    The CBN governor also disclosed that in order to make the real sector attractive to the banking industry, the apex bank has injected over N1.3 trillion into the sector.

    Speaking at the annual finance corespondent sand business editors seminar in Ibadan yesterday, Emefiele said the desire to revive and stimulate credit to the real sector was what informed the bank’s efforts to pump such huge amount of financial resources into the real sector.

    Represented  by the Deputy Governor, Corporate Services, Adebayo Adelabu, Emefiele noted that by injecting funds and subsidising rates, and through relevant policies, the CBN has assisted in growing the economy and promoting the growth of the different sectors of their economies.

    According to Emefiele, the interventions that culminated in the over N1.3 trillion support for the real sector include “the Agricultural Credit Guarantee Scheme Fund (ACGSF),the Commercial Agricultural Credit Scheme (CACS), the Agricultural Credit Support Scheme (ACSS), the N300 billion Real Sector Support Facility (RSSF), the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF), the Small and Medium Enterprises Refinancing and Restructuring Facility (SMERRF), the N75 billion Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL), the N213 billion Nigeria Electricity Market Stabilisation Fund and only recently, the Anchor Borrowers’ Programme launched by President Muhammadu Buhari.”

    The CBN is also supporting the Nigeria Export Import Bank (NEXIM) with N50 billion export refinancing and restructuring facility as well as N500 billion as non-oil export stimulation facility. “If you add all these it is in excess of N1 trillion that have been deliberately injected into the system to ensure that they are fully resuscitated and they become attractive for commercial banks” Emefiele said.

  • Govt must diversify economy, says Emefiele

    Govt must diversify economy, says Emefiele

    Mr Godwin Emefiele, Governor, Central Bank of Nigeria (CBN), yesterday reiterated the need for the Federal Government to diversify its economic dependence from oil to the non-oil sectors.

    He said this at the opening of the 21st Seminar for Finance Correspondents and Business Editors in Ibadan.

    “The rate of oil today at below $35 underscores the harsh reality that Nigeria is left with no choice but to diversify our economy away from oil, and into agriculture, manufacturing, services and non-oil sectors,’’ he said.

    Emefiele said the dwindling oil revenue provides the nation a painful but indispensable opportunity to look inwards in a bid to trigger economic growth.

    He urged Nigerians to begin to appreciate locally manufactured goods such as fabrics, saying that patronising such goods would make local industries thrive and boost economy.

  • CBN extends BVN deadline for Diaspora customers

    CBN extends BVN deadline for Diaspora customers

    The Central Bank of Nigeria (CBN) yesterday extended the deadline for Bank Verification Number (BVN) registration from January 31 to June 30, 2016.

    CBN Director, Banking and Payments System Department, ‘Dipo Fatokun, said the extension followed observations by the CBN showing the low percentage of registration of Nigeria banks’ customers in Diaspora.

    The BVN registration involves capturing of customers’ physiological or behavioral attributes – fingerprint, signature among others has commenced in some banks’ headquarters and branches across the country.

    He said this may be attributed to lack of accessibility to registration centres and unavailability of registration centres in some cities where Nigerian population is high.

    “Consequently, all the commercial banks are hereby requested to note that BVN enrollment for Nigerian banks customers in Diaspora is hereby extended to June 30, 2016. This is to enable such customers complete the enrollment and link the BVN to their banks accounts,” he said in a statement.

    The CBN chief also said the regulator will deploy more registration centres for locations with high Nigerian population. He urged Nigeria banks’ customers in Diaspora to seize the opportunity of this extension to register and link their BVN to their bank accounts.

    The BVN registration for Nigerian bank customers ended last October. Fatokun explained that where an existing customer wishes to register the BVN with his/her bank, capturing his  signature and photo identification document may not be necessary, as the bank is expected to have those records during account opening.

    Also, where an existing customer wants to do a change of name, after his/her enrolment, on BVN, due diligence should be exercised and appropriate legal documents obtained, before the change is effected.

    Fatokun said the new directive is aimed at fast-tracking the enrolment, adding that banks are to give more attention to the enrolment of their customers.

  • CBN Extends BVN Registration for Nigerians in Diaspora

    CBN Extends BVN Registration for Nigerians in Diaspora

    The Central Bank of Nigeria (CBN) has once again extended the registration and linkage of BVN of Nigerian bank customers in diaspora.

    Last year the CBN extended the exercise to 31 January 2016 but in a circular issued last night by the apex bank, it noted that it had observed through a survey the low percentage of registration of Nigerian Banks’ customers in diaspora which may be attributed to lack of accessibility to registration Centres and unavailability of registration Centres in some cities with large Nigerian populations.

    As a result of this development, the CBN has directed all Deposit Money Banks (DMBs) that BVN enrollment of Nigerian Banks’ customers in diaspora has been extended to 30th June 2016 to enable such customers complete the enrollment and links the BVN to their bank accounts.

    The circular signed by Dipo Fatokun, Director Banking and Payments Systems Department while listing existing registration Centres said: “plans are on to deploy more registration Centres for locations with high Nigerian population. Nigerian Banks’ customers are enjoined to seize the opportunity of this extension to register and link their BVN to their bank accounts,” the statement read.

     

     

  • CBN resumes forex sales to banks

    CBN resumes forex sales to banks

    The Central Bank of Nigeria (CBN) said it would resume forex sales to commercial banks. The apex bank told the lenders to fund their naira accounts to be able to participate in a currency intervention on the interbank market slated for today.

    Although the CBN did not disclose how much it would sell, but one trader said the bank sold between $100 million and $150 million at its intervention last Thursday and this could be repeated tomorrow.

    Last month the bank banned dollar sales to retail bureaux de change outlets, sending the naira to record lows on the black market and later stopped daily sales to the interbank market, all to conserve foreign reserves which are down to an 11-year low.

    The local currency traded around a pegged rate of N198 to the dollar on the official interbank market on Tuesday, but was quoted at N305 on the black market.

    The CBN had imposed some currency control measures to save the naira. In June, it curbed access to the interbank currency market for importers bringing in a variety of goods. In an effort to conserve its dollar reserves, the bank said importers could no longer get hard currency to buy 41 items, ranging from toothpicks and rice to steel products and private jets.

    One of such measures –  the  total ban on the use of debit cards abroad, has caused panic in both the local and international markets with customers feeling the pangs of the policy, which was meant to conserve foreign reserves and protect the local currency.

  • Civil Society seeks review of CBN economic policies

    Civil Society seeks review of CBN economic policies

    The Civil Society Group for Good Governance, (CSGGG), Wednesday called‎ on the President, Muhammadu Buhari to review the economic policies and model adopted by the Central Bank of Nigeria.

    The group stated that government should consider enhancing all economic apparatus capable of boosting economic agenda of the present administration, considering the easy fall of the Naira against Dollar.

    In a statement signed by Comrade Dominic Ogakwu, in Abuja, said it is‎ important to achieve the goal of resuscitating the nation’s economy.

    Ogakwu stated that, “The commitment and proactive steps being taken by the incumbent leadership to completely eradicate insurgency and corruption, which have been the bane of our under development, is not only commendable but a reflection of the true change that Nigerians have always craved for.”

    According to him, with the current administration is better positioned to propel genuine growth and development in all strata.

    Ogakwu, who also called on security agencies in the country to identify blackmailers of the management of Delta State Oil Producing and Development Commission (DESOPADEC), said this is hindering the progress of the commission.

    “As a concern civil society coalition deem it fit to address the issue and call to order those parading themselves as members of unrecognized members of the struggle and forewarn them on their continues distraction of the resolution of the management team to deliver on the dividends of democracy. This anti progressive agents whose sole aim is to minimize the caliber and integrity of the commission as composed by Governor Ifeanyi Okowa, should be fish out and brought justice.

    “With the falling oil price, the effort of the current management to reposition the commission towards delivering the dividends of democracy to the people through a systematic approach that will translate to infrastructural development, sustainable youth empowerment scheme, women and children empowerment and welfare for the elderly, should be supported,” he said.

  • Fed Govt to CBN: Cut farmers’ interest rate to five per cent

    Fed Govt to CBN: Cut farmers’ interest rate to five per cent

    The Federal Government has instructed the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) of the Central Bank of Nigeria (CBN), to do everything possible to cut interest rate on loans to farmers to five per cent.

    The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, who spoke yesterday during the National Workshop on New Agricultural Policy for the sector, said agriculture cannot thrive if lending remains at 25 per cent.

    Ogbeh promised to impose financial sanction on any bank that fails to comply with the directive.

    He said: “Just this morning, I talked to key officials of NIRSAL group in the CBN. We have to bring interest rate to five per cent.

    “How we do it and how the financial institution will work to cope with it (will be worked out), we have to impose serious financial penalties on defaulters otherwise, we will not survive. There is no point pretending we are going to make it in spite of those circumstances.”

    He said Nigeria banks remained one of the financial institutions in Africa that offer outrageous interest rate to local farmers.

    “Even if we acquire competence and capacity, how can we deal with issues of near impossible interest rates in agriculture? There is no country on earth outside Africa where banks demands 25, 18 even nine per cent for agriculture borrowing.

    “Those interest rates, as man, I assure you as a man who has been in this business since the age of seven, you cannot make profit in agriculture. Is there something rest of the world has done that we have failed to do? Sometimes some of the reforms we have carried out in the past, especially fiscal and monetary policies have done terrible damage to this country’s progress.”

    He said there was a time in the past when when the president announced a budget and fixed the lending rates and also informed banks how much they have to lend to the public sector, lamenting that the practice has been jettisoned.

    Chief Ogbeh sought subsidy for the sector as being practiced in other developed countries, adding that the nation has potential to feed its people.

    He said: “There are people complaining about CBN policy on import restriction. We have no business importing rice, sugar, milk, toothpick, bananas, strawberry, pepper. For God sake, what kind of people are we?”

    According to him, Nigeria has 10 per cent of global arable land for cultivation, yet the people relish importation, thereby strengthening other economies and denying youths of jobs, causing crisis.

    He stated that if the 100 million young people in the country, who are predominantly below age 50 could be engaged, they would transform the sector.

    He disclosed that a potential cure has been discovered but needed to be researched upon at the agric research institute to confirm its relevance to local needs.

    “We have a big threat in the poultry industry to bird flu. In the last two months, about 6 million chickens have died. I lost some on my farm as well and I have been calling friends. Just yesterday, I received a text from Egypt and they inform me that have found a vaccine they inject the chicken. We will not immediately rush in and bring in the vaccines, we will take it to our research institutes, take a look and see if it can fit into our needs,” he added.

  • NEXIM Bank gets CBN’s N300b export stimulation fund

    NEXIM Bank gets CBN’s N300b export stimulation fund

    The Central Bank of Nigeria (CBN) yesterday approved a N300 billion export stimulation fund for the Nigerian Export-Import Bank (NEXIM).

    The bank’s Managing Director,  Robert Onya said  during a visit of the Hon. Jones Onyereri- headed House of Representatives Committee on Banking and Currency, that the bank also got additional N50 billion from the CBN for rediscounting and refinancing of loans obtained by investors from commercial banks, with a one year tenor.

    Briefing the committee members on the activities of the bank over the past five years, the NEXIM chief noted that most of the foreign loans obtained are yet to be utilised due to the dissolution of the NEXIM board, and the non- constitution of a new one.

    He said only $33 million was disbursed from the $200 million African Development Bank (AfDB) facility obtained in 2011 for financing Small and Medium Enterprises (SMEs), because of delay in obtaining approval for Sovereign Guarantee, adding that the Board was dissolved while they were waiting for customers.

    Onya also said only $23.1 million has so far been utilised from the additional $200 million obtained from African Export bank.

    He said the bank has so far paid $10.7 million interest on the $200 million loan obtained from AfDB which is expected to expire by January 21, 2021, in spite of non-utilisation of the loan.

    According to him,  out of the $50 million approved in the first tranche, $8.6 million has been utilised while $11.9 million approved is yet to be accessed and disbursed.

    Onya told the Committee that the bank’s single obligor is $3.6 billion, but the bank reduced it to $1.8 billion so as to make the facilities go round.

    He said the bank is making efforts to recover the non-performing loans prior-2010, which the CBN directed should be put into the Memorandum Account instead of it being written-off.

    On the successes of the bank so far, he said the effort of the new administration to diversify the economy has started yielding positive results as two Nigerian companies have secured multi-million dollar off-take to export gold to China.

    He said Loratt Minerals Limited, Gusau in Zamfara State secured take-off loans valued at $5 million and Issh-Ass Limited, Sokoto got loan worth N100 million, adding that the project is expected to commence by March this year.

    According to him, the bank has generated income totaling N5.6 billion in four years, from its initial N15. 5 billion investment portfolio.

    Hon. Onyerieri urged President Muhammadu Buhari to constitute the board of NEXIM bank so the bank could disburse the un-utilised  funds available which require the board’s approval.

  • NEXIM Bank gets CBN’s N300bn export stimulation fund

    NEXIM Bank gets CBN’s N300bn export stimulation fund

    The Central Bank of Nigeria (CBN) has approved a N300 billion export stimulation fund for the Nigerian Export-Import Bank (NEXIM), Robert Onya, the Managing Director said Monday.

    Onya, who gave the information during an oversight visit of the Hon. Jones Onyereri- headed House of Representatives Committee on Banking and Currency revealed that the bank also got additional sum of N50 billion from the CBN for rediscounting and refinancing of loans obtained by investors from commercial banks, with a one year tenure.

    However, while briefing on the activities of the bank between 2010 and 2015, the NEXIM boss noted that most of the foreign loans obtained are yet to be utilised due to dissolution of the NEXIM board, and the non- constitution of a new one.

    He said only $33 million was disbursed from the $200 million African Development Bank facility obtained in 2011 for financing Small and Medium Enterprises (SMEs), because of delay in obtaining approval for Sovereign Guarantee, and that the Board was dissolved while they were waiting for customers.

    Onya also said that only $23.1 million has so far been utilised from the additional $200 million obtained from African Export bank.

    He said the bank has so far paid $10.7 million interest on the $200 million loan obtained from African Development Bank (AfDB) which is expected to expire by January 21, 2021, in spite of non-utilisation of the loan.

    According to him, out of the $50 million approved in the first tranche, $8.6 million has been utilised while $11.9 million approved is yet to be accessed and disbursed.

    Onya told the committee that the Bank’s single obligor is $3.6 billion, but the bank reduced it to $1.8 billion so as to make the facilities go round.

    He said the Bank is making efforts to recover the non-performing loans prior-2010, which the CBN directed should be put into the Memorandum Account instead of it being written-off.

    On the successes of the bank so far, he said the effort of the new administration to diversify the economy has started yielding positive results as two Nigerian companies secured multi-million dollar off-take to export of gold to China.

    He said Loratt Minerals Limited, Gusau in Zamfara state secured take- off loans  worth $5 million and Issh-Ass Limited, Sokoto got loan worth N100 million and that the project is expected to commence by March 2016.

    According to him, the bank has generated income totaling N5.6 billion in four years, from the initial N15. 5 billion investment portfolio.

    Chairman of the Committee, Hon. Jones Onyerieri urged President Muhammadu Buhari to constitute the Board of NEXIM bank, to allow the Bank disburse the un-utilised  funds available which require the board’s approval.

    The lawmaker while expressing satisfaction with the efforts of the bank urged it to expand its reach to farmers and entrepreneurs in the North-East and other parts of the country hitherto unreached to actualize the economic diversification policy of the Muhammadu Buhari- headed administration.

  • CBN set to help IDPs

    CBN set to help IDPs

    The Central Bank of Nigeria (CBN) is set to provide basic infrastructural needs to the Internally Displaced Persons ( IDPs) in their camps.

     Its governor,  Godwin Emefiele, has, therefore, requested that the National Emergency Management Authority (NEMA) provides him with detailed needs in the camps.

     The CBN Director in charge of Project and Planning, Mr. Kabiru Nuhu Koko, said the apex bank would begin the project as soon as its preliminary findings were concluded.

    Koko, who is also the immediate past President of the Unity Schools Old Students Association (USOSA) while receiving a meritorious award from the Northern Youth Network (NYN) in Abuja, said NYN had specifically demanded that the CBN should device a means of alleviating the suffering of the IDPs.

     Koko, who urged the youths to collaborate with other youth groups across the country, said the Nigerian unity should not for any reason be compromised.

     “This Nigeria is real, some people will tell you otherwise, please don’t listen to them. Some will say Nigeria is a mere geographical expression, some will ask you why you’re promoting Nigeria, instead of promoting your village, please don’t listen to those negative comments. Nigerian communities  have a very long history of inter-group relations, and Nigerians have been interacting long before the coming of British colonialists,” he said.