Tag: cbn

  • CBN governor presents N2b to Delta msme

    The Governor of Central Bank of Nigeria (CBN), Godwin Emefiele yesterday in Asaba, Delta State capital presented the cheque of N2billion to the Delta State government for onward disbursement to micro, small and medium entrepreneurs (MSMEs) across the state.

    Speaking during the ceremony to officially roll out the funds, the apex bank chief said the loans which would be disbursed to MSME entrepreneurs would attract a single digit interest rate.

    He urged beneficiaries to make judicious use of the loans, insisting that the grant was free gift even as he implored them to cultivate the habit of good credit and repay loans as at when due to enable them get another.

    Emefiele said CBN launched the intervention scheme in recognition of MSMEs as a catalyst for rapid economic growth, poverty reduction and job creation across the globe.

    He  commended the Delta State government for having a well-coordinated programme of poverty reduction.

    Receiving the cheque, the state governor, Dr. Emmanuel Uduaghan assured the CBN governor that the funds will get to the intended beneficiaries and announced that his administration would take care of the interest rate on behalf of the beneficiaries.

  • Capital market to launch new development master plan

    •Stakeholders parley at annual retreat

    A new comprehensive long-term master plan for the Nigerian capital market, which is expected to push the market capitalisation to more than N100 trillion over the decade, is expected to be launched next week.

    The master plan, developed under the auspices of the Capital Market Committee (CMC), aggregated collective inputs of all stakeholders in the capital market into a development blueprint that will guide policies, regulations and implementation over the next 10 years.

    The CMC, chaired by the director general of Securities and Exchange Commission (SEC), consists of chief executives of all registered capital market operators including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants among others.  Other members included chief executives of the Chartered Institute of Stockbrokers (CIS); Nigerian Stock Exchange (NSE), Abuja Securities and Commodity Exchange (ASCE) and Central Securities Clearing System (CSCS).

    The CMC also included two members each from observer groups, which included Asset Management Corporation of Nigeria (AMCON), Central Bank of Nigeria (CBN), Corporate Affairs Commission (CAC), Debt Management Office (DMO),  Federal Ministry of Finance, Federal Mortgage Bank of Nigeria (FMBN), Federal Inland Revenue Service (FIRS), Nigerian Deposit Insurance Corporation (NDIC), Investment and Securities Tribunal (IST), Nigerian Investment Promotion Council (NIPC), National Insurance Commission (Naicom), National Pension Commission (Pencom) and FSS2020.

    A member of the CMC and chairperson of the CMC Annual Retreat, Mrs Oluwatoyin Sanni, at the weekend confirmed that the new capital market master plan has been completed and would be launched at this year’s annual CMC retreat, holding in Abuja between November 26 and 28. Former Chairman of Accenture Nigeria, Mr. Adedotun Sulaiman chaired the capital market master plan committee.

    Director General, Securities and Exchange Commission (SEC), Ms Arunma Oteh, who outlined the concept of the master plan had said the underlining aim of the master plan is to raise Nigerian capital market capitalisation from the current position of 27 per cent of the nation’s Gross Domestic Product (GDP) to more than 100 per cent of the GDP in the next 10 years.

    According to her, the commission will undertake comprehensive review of the various segments of the market including the regulatory framework, transaction costs, market size, listing and products.

    She outlined that the CMC is looking at boosting the market’s efficiency in such a way that allows seamless transactions on the Nigerian market and other global markets.

    She said the master plan would take into consideration factors that could impact market growth and develop strategies for robust governance for improved efficiency, transparency and enhancement of the market stability.

    Sanni said the 2014 retreat, with the theme: capital market-creating wealth and opportunity, would bring into focus strategies for converting the gains of Nigeria’s larger economy into wealth distribution through the capital market.

    She said more than 800 participants are expected at the retreat including top government functionaries and leading capital market operators and regulators.

    According to her, the retreat would afford capital market stakeholders opportunity to interact and engage on issues that will have positive impact on the market.

  • Interbank rate up as CBN supports naira

    Interbank rate up as CBN supports naira

    The overnight interbank lending rate spiked 287 basis points, about three per cent, to 10.87 per cent on Friday.

    The figure came after the Central Bank of Nigeria (CBN) mopped up liquidity via Treasury Bills sales to ward off pressure on the naira, dealers said.

    The CBN sold over N200 billion ($1.17 billion) worth of open market bills all through the week, curbing liquidity in the market, to drive up interbank rates.

    Meanwhile, the Fitch Ratings has said that Nigerian and Angola, Africa’s biggest oil producers have debt to Gross Domestic Products (GDP) levels low enough to withstand slumping crude prices, while Ghana faces risks without an aid package and Zambia from an unexpected election.

    Nigeria and Angola, it said, are able to post budget deficits for the next year or two because of their low debt, enabling them to maintain spending with lower oil prices, director of the sovereign group at the agency, Carmen Altenkirch told Bloomberg.

    “Nigeria and Angola have the fiscal space to run deficits in the region of four to five per cent of Gross Domestic Product (GDP) for a few years without undermining fiscal stability. However, if oil prices remain low for longer, fiscal policy may need to be tightened to avoid downward pressure on the rating,” she said.

    Slumping crude prices pushed the naira to a record low last week, prompting pledges from the CBN officials that they’ll continue using foreign-exchange reserves to bolster the currency.

    Angola cut its estimate November 12 for 2015 oil output to 1.83 million barrels a day from two million. Fitch rates Nigeria and Angola BB-, three steps below investment grade.

    “Creditworthiness would benefit from running fiscal surpluses,” Altenkirch said. Fiscal surpluses during the good years will give these countries scope to run deficits due to lower oil prices.”

    Ghana and Zambia could be rated at similar levels to Nigeria, Angola and Gabon, which also pumps oil, if their economies were more stable, she said.

  • Hidden jobs in agric mechanisation

    For its capacity to create jobs, reduce poverty and increase production in the agricultural value chain, more farmers are embracing mechanised agriculture, DANIEL ESSIET reports.

     

    •Over 200,000 jobs waiting to be grabbed

    The Federal Government has stepped up efforts to increase crop and animal production as part of its wider goal to increase exports and foreign exchange earnings. This is also intended to close the big balance of payments deficit. To achieve this, the government has put in place initiatives aimed at boosting agriculture production and agro-processing.

    The Minister for Agriculture and Rural Development, Dr Akinwumi Adesina, said the government is supporting innovative ideas that have the potential to transform the number one driver of the country’s economy. He noted that the government is developing relevant policies and an enabling environment to foster investment in the agriculture sector. This   will play a big role to boost productivity and performance of stakeholders, especially small-scale farmers.

    Adesina said the government targets  creating about 3.5 million jobs from the agricultural sector annually under the country’s development blueprint, adding that the aspiration could only be achieved through mechanised agriculture. He said the  Federal Ministry of Agriculture and Rural Development  has started to establish 1,200 Agricultural Equipment Hiring Enterprises (AEHE) centres across the country.

    The scheme, which was launched on August 25 by President Goodluck Jonathan, is targeted at putting hoes and cutlasses into the museums and providing Nigerian farmers affordable mechanised services regardless of their location. To back this up, President Jonathan directed the Central Bank of Nigeria (CBN) to set aside a N50 billion Agricultural Mechanisation Fund for the roll out.

    Adesina, who performed the official take-off ceremony of the programme in Gusau, Zamfara State, said the AEHEs scheme, with support from the Agricultural Mechanisation Fund, would lead to the establishment of a minimum of 1,200 centres where tractors and other agricultural equipment could be accessed across the nation. This, he said, is expected to happen between now and 2016. The centres will provide 6,000 units of tractors and their implements, 15,000 power tillers and over 20,000 planting, harvest and post harvest equipments.

    “This will be used to mechanise minimum of four million hectares of farm land in the country, with a projection that it will expand food production by an additional 20 million metric tons, and create over 200,000 direct and indirect jobs for youths.

    “Once set up, the centres will provide farmers the opportunity to lease or hire out various types of agricultural equipment for land preparation, harvesting and in the area of post-harvest operations, repair and maintenance of such equipment. There are significant opportunities for job creation in post harvest management. An increasing amount of wild fish stocks are being depleted due to overcapacity and damaging fishing methods. These  depletions are widespread.”

    According to  him,  there is a need to rebuild fisheries where ever possible. This require  initiatives that  would create employment in fish stock assessment, monitoring, control and protection, as well as supporting additional research positions in relevant technologies.

    With rising pressure to mitigate the impacts of climate change,  experts  see   growing biofuel sector  expanding  to  create  thousands  of jobs in related agriculture and industry processes. Already,  experts  are  seeing   job creation for agricultural workers producing biofuels at small and medium capacity scales.  With  mechanisation and  technology,  there  will  be  jobs  for   professionals   to  help  farmers   align information technology (IT) and technology activities with business objectives and ambitions to enhance performance and minimise risks.

    The minister was of the view that the economy will witness  a growing and diversifying agricultural sector,  which will  create employment opportunities across the  value  chain. He said  the  government  is  promoting  farming  activities  across major  commodities  such  as  cocoa, rice, cassava, sorghum and maize.

    This has triggered a flurry of activities  requiring   skilled personnel  in processing, marketing, machinery operation and repair, transport and logistics, and quality control. The  cassava revolution is  also  helping  the  government  to  create more  jobs. Speaking at the inauguration of Oamsal High Quality Cassava Flour Processing factory at Ayede –Ekiti, Ekiti State, Adesina pledged government’s resolve to turn cassava into gold in Nigeria. He stated that government’s  plan is to continually make funds available to support Small and Medium Scale Entrepreneurs  to upgrade their facilities.

    The Minister said 35 Small and Medium Scale Enterprises (SMEs) would benefit one million Naira each from the Cassava Bread Fund, to enable them achieve entrepreneurial optimum performance, which is made available by the Bank of Industry (BoI). Adesina sees  the  sector  absorbing   large numbers of new job seekers and offer meaningful work with public and private benefits.  For this to happen, constraints to land, capital, and skills are to  be   addressed, providing features to make the  sector  friendly to the needs of young graduates.

    Major food companies that have begun innovative reformation of their supply chains with the intention to improve their operations and create new job opportunities are increasing. These include Flour Mills of Nigeria, Dangote Group and Dominion Group.

    For instance, Kaboji Farms, located in Kaboji Town, in Kontagora, Niger State, has carved a niche for itself in mechanised farming. The 10,000-hectare farm, established by Flour Mills of Nigeria (FMN) to cultivate maize and other cereals, has investments worth over N1 billion.

    The farm has 2,000 hectares of maize and 1,000 hectares of soya beans, and other cultivated crops such as rice and cassava. The Nation learnt that as part of its expansion programme, the management of the farm has concluded arrangements to increase the cultivated area by 2,000 hectares over the next five years, with a projected output of 7000 metric tonnes (MT).

    The farm’s Manager and Agric Technical Adviser, Mr. Kobus De Jager, said Nigeria needs large commercial businesses to transform her agriculture and food-production ability. He said the key to profitable commercial farming is good yield and control of key input, hence the farm uses the latest farming techniques and highly mechanised approach, which in the last two seasons, has guaranteed increased yield of more than 50 per cent.

    With this, De Jager said the management of the farms is optimistic that sustained and dynamic agricultural growth initiatives such as those it has embarked on, would contribute to food security and sufficiency and help Nigeria realise its huge potential as an economic giant in Africa and beyond.

    On its part, the management regularly upgrades its farming implements and machineries by using tractors, seed planters and combined harvesters. This has created jobs for the youth of the area. Apart from farm workers and labourers, heavy tractor, trailer truck drivers are  in  great  demand. Because of this, tractors, harvesters and  seed  planters  are indispensable tools of  daily life in  major  farms owned by  the private  sector across the country.

    Besides these categories of workers, mechanised farms create jobs for office production planners; agronomists; accountants; breeders; machinery and agricultural parts coordinator; business managers; human resources managers; finance manager; agric and mechanical engineers; agric extension officers; procurement managers; transport managers and  farm technicians though on very small scale. There is also the demand for reliable, responsible and motivated people, who can combine technical knowledge with practical skills in such farms.

    Young people are being employed and trained to use tractors to plow and get the fields ready for planting. For school leavers, the company gives  them  the  opportunity to learn basic tractor operation and helps complete some  work. As a requirement, they  need to be physically fit and have drivers’ licences. Although not essential, some of them  are  graduates of  agricultural colleges.

    As  tractor drivers, they  undertake a variety of different jobs including ploughing, drilling or harvesting. The role may also include maintaining and cleaning the tractor. In  Kaboji town, most women are no more full time housewives, but strong contributors to family standard of living. These women,  on a monthly basis, earn competitive income as their counterparts in the civil service because they work and contribute in various ways to the farms.

    For instance, as early as 6am, they assemble in hundreds, clad in  farm clothes, with their lunch packs and be ready for the farms. They also earn income from picking leftovers of maize and soya beans from the harvesters’ machines.

    Kaboji Farm’s Crop Manager, Babatunde Hamed, said there are usually intense competitions among the women as they earn their income based on the number of bags harvested per day. Markers and clackers, at point of delivery, record harvest of each of them. At the end of the month, the women go home with between N18, 000 and N25, 000 or more.

    One of the pickers on the farm, Asmau Suleiman, said she has a target of N160,000 for herself before the end of the harvesting period. “I want to replace the thatch roof of my house with corrugated sheets and buy more goats for my farm,” she said, adding: “My son can go to school now without worries.”

    An aged mother of six, Halima Sani, said she  was on the farm to support her weak husband, who has been suffering waist pain for years. “I’m happy I can make some money to support my family and buy books for my last child, who is still in school,” she said. Besides, Kaboji women still cultivate other lands for their families’ food needs. All of them still maintain their traditional farms in the locality.

    While they work and make a living from the commercial farm, their husbands are also beneficiaries of the company’s out-growers scheme. They are supported with seeds, techniques and fertilisers to grow crops, which the company buys from them at the end of the harvest season.

    Besides the pickers on the farms, there are women, who make a living by just separating the corn from the cob using the traditional methods. These women are part of the larger workforce that makes a living from Kaboji Farms. The agricultural activities in Kaboji have transformed the living conditions of the people.

    According to the Director, Africa Region, Cassava Adding Value to Africa (CAVA), Dr  Kola Adebayo, agriculture will likely continue to be the dominant sector of employment for most young people over the next few decades. Fortunately, the increasing  high demand for agricultural products is  helping  to  create  such  opportunities. He said agriculture provides the  largest and most ambitious social security and public works programmes  that  can  guarantee  participating adults in rural households plenty days of paid manual labour each year.

    According to him, agriculture helps  the  economy  achieve inclusive growth by generating employment and reducing poverty in rural areas, providing livelihood security to the rural poor through guaranteed wage employment, rejuvenating the natural resource base,  stimulating  the local economy, and increasing  women’s empowerment.

    He explained that  job opportunities on  farms abound, but they are still unrecognised by or inaccessible to most young people. “This  is  because  a lot  of them  don’t  see  agricultural employment as a viable career, seeing  the reality of their families’ situation,” he added.

    Despite this, he  noted,  the  sector represents the  most immediate opportunity to realise gains in growth and create employment for young people. A combination of pooled off-farm earnings, a shift to higher-valued and more commercial products, following  the  efforts of the  government  through  the  agricultural  transformation  agenda, he  said,  would   allow more  small farms employ  more  youths.

    According  to him, higher-valued agriculture  will create employment opportunities following  increasing  demand for transport, plant protection, veterinary services and mechanised field operations.

  • Lemo charges public  agencies on labour laws

    Lemo charges public agencies on labour laws

    The former Deputy Governor of the Central Bank of Nigeria, Mr. Tunde Lemo has appealed to government agencies to step up actions in the implementation of the existing labour laws as this would help stabilise national economic growth and development.

    Lemo made this appeal during a one-day forum for top executives organised by Whyte Cleon Limited in Lagos.

    Tagged: ‘Employee Engagement and Talent Retention’, the event drew participants from top chief executives, senior managers, management staff, human resources managers, academics, among others, to the first of its kind master class on employee engagement and talent retention in Nigeria.

    According to Lemo, the need to strengthen employer-employee relations through existing laws and instruments is very apt, timely and germane for national development in Nigeria.

    He said poor implementation of existing labour laws and loose systems are inimical to the growth of employer-employee relation.

    He noted that the free market policy of the federal government which has helped in developing our economic base should not be an excuse for the loose and low entrance standards for engaging outsourced staffs and contract workers which has pervaded all sector of our economy and can only be checked with proper monitoring and implementation by government agencies and civil society groups.

    On whether there is a need to review existing law, he said: “The problem in Nigeria is not with the law because we have the best law in Nigeria but it is enforcing the law to the benefit of the common man who rely on state as they strive to be the best in their place of work.”

    Also speaking at the event, the Executive Director, Human Resource, 7UP Bottling Company Plc, Mr. Femi Mokikan who lamented the poor implementation of the existing labour law said that indigenous and foreign firms will continue to trample on human right and welfare programme of their employees because of the loose system that we operate in Nigeria.

    He said “the regulatory authorities would need to do more on the enforcement of our labour laws. There are human right issues with some foreign firms in Nigeria and it is pronounced because they benefit from our loose system.”

    Speaking earlier, the Managing Director of Whyte Cleon Limited, Mrs. Nireti Adebayo said that the master class was aimed at restating the essence of good employer-employee relationship model in the work place.

    She cited a study carried out last year by the organisation which indicated that over 65% of employees working in many organisations are disengaged and are only buying time in their work largely because of the gap between employees and their employers are so wide.

  • Experts hail CBN’s policy on moveable assets

    THE new policy regime by the apex bank which supports moveable collateral such as jewelry, cars and other moveable assets as an alternative to fixed assets currently used by the banks as collateral for loans has been described as a very laudable policy indeed .

    Firing the first salvo, Fayo Williams, a Lagos-based entrepreneur believes that this is a step in the direction especially for those who genuinely needs to access funds would maximise the opportunity

    “It is definitely going to bring relief for small businesses especially women who constitute a large percentage of this companies. However, we would appreciate it if the modalities and framework for the implementation of this initiative is concluded on time.”

    She adds that: “Commer-cial banks that are the source of funds used by  microfinance banks for lending should end the practice of demanding for cash- backed bank guarantees because this usually increase the cost of lending which is subsequently passed onto the borrower.”

    Echoing similar senti-ments, Tinuola Thompson Ajayi, a member of the Governing Council of the Chartered Institute of Bankers of Nigeria and President, Professional Women Bankers, agrees as well: “This is part of the agitations that has been going on for a while. A committee was set up consisting of professional women’s groups across the country and they have been engaging the CBN and other stakeholders.”

    Ajayi also believes that: “In addition to these, they have been compelled to bring out more gender-friendly policies. The group driving the access to credit is made up of women who are seasoned professionals. This time around, women are encouraged to go in groups and not individuals to maximise the opportunities that are available.”

    Some of the fallout of the development, Ajayi informed, would be deliberated upon at her organisation annual corporate forum and dinner in the coming week.

    “What we would be focusing on is sustaining financial inclusion through micro enterprise development. Our speakers   include the CBN Deputy Governor on Economic Policy, Dr. Sarah Alade and Mrs Modupe Ladipo of Elfina.”

    Like Thompson, Titilola Adisa who leads the Association of Nigerian Women in Business Network noted that this is an issue that has been on the front burner for women.

    “A few months back we had a forum where we x-rayed some of the factors affecting women entrepreneurs and this was one of the items on our communiqué. We are therefore happy that government has looked into the matter making policies that would make things better.”

    Adisa further notes that :”Most women are entrepreneurs and we all have hobbies which can be turned to money. And with the right policies, support and guidance from the relevant stakeholders, things can only get better. Ordinary savings can help to make a difference as well as transform a simple business idea.”

    Adisa adds that: “The financial exclusion level of Nigeria is amongst the highest in Africa, the result is lack of opportunities to maximise income and expand businesses.”

  • CBN extends data security compliance deadline

    CBN extends data security compliance deadline

    The Central Bank of Nigeria (CBN) has extended banks’, switches’ and processors’ compliance with the Payment Card Industry Data Security Standard (PCI DSS) standard till November 30.

    The PCI DSS is a proprietary information security standard for organisations that handle cardholder information for the major debit, credit, prepaid, e-purse, Automated Teller Machines (ATMs) and Point of Sale (PoS) cards.  The standard was created to increase controls around cardholder data to reduce credit card fraud via its exposure.

    A circular to banks, switches and processors, endorsed by CBN Director, Banking Payment System, ‘Dipo Fatokun, said the need to extend the deadline followed requests by many banks seeking more time to enable them to complete the certification process.

    He said to determine the readiness of various operators, the CBN engaged the services of three Qualified Security Assessors (QSA) to conduct pre-certification assessment of the banks.

    The result, he said, showed that while many banks had complied with the certification, many are still at different stages of compliance.

    He said with this extension, banks, processors and switches are expected to comply before the end of the deadline.

    The validation of PCI DSS compliance is performed yearly, either by an external QSA that creates a Report on Compliance (RoC) for organisations handling large volumes of transactions, or by Self-Assessment Questionnaire (SAQ) for companies handling smaller volumes.

    The CBN had earlier released card issuance and use guidelines for the financial services sector. Fatokun said the power to issue the guideline was derived from Section 47 (3) of the CBN Act 2007.

    He said industry stakeholders who process, transmit, and or store cardholder information should ensure that that their terminals, applications and processing infrastructure comply with the minimum requirements for the sector.

    The CBN director said all terminals, applications and processing infrastructure should also comply with the standards specified by the various card schemes.

    Fatokun said only banks licensed by the CBN with clearing capacity shall issue payment cards to consumers and corporations in the country.

    He added that banks without clearing capacity can issue in conjunction with those with clearing capacity.  Also, all banks should seek approval from the CBN for each card brand they wish to issue.

     

     

  • ‘Why local banks cannot fund airlines’

    ‘Why local banks cannot fund airlines’

    THE Managing Director of Discovery Air, Captain Mohammed Abdulsalami has identifed double digit interest rate, rigorous conditions attached to base lending rates approved by the Central Bank of Nigeria (CBN), as impediments on the way of funding local carriers.

    He said the base rate of about 20 per cent for on-lending to the aviation sector is unfavourable, adding that because no domestic airline can access loan from the banks to buy aircraft and  expect to make any appreciable profit in the end.

    The Discovery Air chief, said airlines in other parts of the world access funds from financial institutions paying as less as two to three per cent as interest, stating that such low interest window, is the reason such airlines could remain in business profitably.

    He canvassed a regime whereby soft loans could be made available  to domestic operations by the Federal Government as financial intervention  to enable them acquire new aircraft .

    He said: ” Many Nigerian carriers cannot buy new aircraft because the interest rate charged by Nigerian Commercial banks is too high. If airlines get soft loans from the government, they could buy new aircraft from it and not what they expect from the banks.”

    Abdulsalami said in the developed world, interest rate by banks to airlines is between one to two per cent, but in Nigeria where the interest rate is over 20 per cent, how do you expect domestic carriers to compete with foreign  airlines that enjoy such credit facility from their governments and financial institutions? he queried.

    He said if Nigerian carriers could get such credit facility at two or three per cent interest rate, that would be free money to buy new aircraft, pointing out that domestic operators will find it difficult to compete if they pay over 20 to 24 per cent interest rate on loans .”

    He said banks annualise all their charges, commissions and fees and add them to their base lending rates to arrive at their all-inclusive average lending rates which they summit to the CBN, stating that base lending rates include all charges, commission and others which are submitted to the CBN.

    He appealed to government to assist domestic carriers by reducing the huge burden of taxes, and the oscillating price of aviation fuel, which he said, could be resolved through local refining of aviation fuel.

    ” The major challenge Nigerian airline operators face is the cost of getting money . It is very, very difficult . If the government could intervene by giving soft loans it would be easier for operators .

    “It is very difficult for a Nigerian company to start an airline because nobody is willing to lease an aircraft to you. We are forced to look for money to buy. This increases the capital outlay to start an airline . But, if government could give soft loans , it would be easier,” he said.

    He pointed out that alhough government assisted some domestic carriers in the past, “but not all carriers accessed that window,” saying, “I do not think the intervention funds given to some benefitting airlines were judiciously used.

    “That is the problem, but I am convinced that there is still room for government to step in and assist, he stated.

    “Government should ensure due diligence in giving out financial assistance to any airline to ensure that the money is utilised for the purpose it is given ,” Abdulsalami said.

  • CBN limits generators, telcos equipment import funding to interbank

    CBN limits generators, telcos equipment import funding to interbank

    •Pegs Standing Deposit Facility at N7.5b

    All imports involving electronics, finished products, information communications technology, generators, telecommunication equipment, and invisible transactions, will henceforth be funded from the interbank foreign exchange market only, theCentral Bank of Nigeria (CBN) said yesterday.

    In a circular to all authorised dealers, CBN Director, Trade & Exchange Department, O.I. Gbadamosi, informed stakeholders that the policy is desined to maintain the existing stability in  the foreign exchange market and strengthen the various policy measures, already initiated by the CBN.

    “The importation of electronics, finished products, information technology, generators, telecommunication equipment, and invisible transactions’ importations, shall henceforth be limited to the interbank market only,” he said.

    Also, the apex bank has pegged the Standing Deposit Facility (SDF) for banks at N7.5 billion, remunerated at 10 per cent per annum.

    Standing facilities are aimed at providing and absorbing overnight liquidity, signal the general stance of monetary policy and bound overnight market interest rates.

    In a circular signed by the Director, Financial Markets Department, E.U. Ukeje, the regulator observed that banks and discount houses have preference for keeping their idle balances in the CBN as SDF thereby constraining the process of financial intermediation.

    In order to encourage the banks to increase lending to the productive sector of the economy, the guidelines for the operations of the SDF is reviewed.

    The review, he said, entails that the remunerable daily placements by banks and discount houses at the SDF shall not exceed N7.5 billion. This shall be remunerated at the SDF rate of 10 per cent per annum.

    He said that any deposit by a bank or discount house in excess of N7.5 billion shall not be remunerated. “These provisions are without prejudice to the subsisting Monetary Policy Rate (MPR) corridor. For the avoidance of doubt, the SDF remains operative as a monetary policy tool, but patronage of the facility shall be subjected to the above modifications,” he said.

    The MPR corridor remains at plus or minus 200 basis points round MPR. Continuing, he said: “The SDF shall attract an interest rate of MPR minus 200 basis points, 10 per cent per annum up to the limit of N7.5 billion, while any deposit over and above the maximum will attract zero interest rate”.

  • HOS urges partnership with CBN on capacity building

    HOS urges partnership with CBN on capacity building

    Head of the Civil Service of the Federation (HOS), Mr Danladi Kifasi has called for partnership with the Central Bank of Nigeria (CBN) in capacity building and skills development for public servants in the country.

    Kifasi, who paid a courtesy call on the CBN Governor Godwin Emefiele in his office in Abuja, said collaboration between relevant stakeholders and development institutions has become necessary in order to help build a modern public service that would provide world class service for sustainable national development.

    He observed that most civil servants lack the requisite skills to compete favourably with their counterparts in developed countries, which necessitated the need to leverage on CBN as one of the key institutions that provides effective and efficient service delivery to Nigerians and the entire African continent.

    Responding, Emefiele said part of the mandate of the apex bank is to impact positively on the lives of Nigerians in terms of job creation and capacity building. He said the call for collaboration was timely as the bank had put in place a world class international training institute with state-of-the-art facilities for capacity building for all Nigerians.