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Tag: cbn

  • CBN disburses N228bn agric credit funds

    CBN disburses N228bn agric credit funds

    The Central Bank of Nigeria (CBN) has put the total amount disbursed to beneficiaries under the Commercial Agriculture Credit Scheme (CACS) as at the end of the first quarter 2014 at N228.093 billion.

    The Central Bank disclosed this in its Development Finance Department (DFD) report for January- March 2014.

    According to the report, the amount was utilised for 299 projects.

    The CACS was established to finance large ticket projects along the agriculture value chain. The scheme is being administered at a single digit rate of nine per cent to beneficiaries for a period of seven years. State governments, including the FCT can access a maximum of N1 billion each for on lending to farmers’ cooperatives or other areas of agricultural intervention.

    A breakdown of the amount showed that it comprised N199.831 billion released from the CACS receivable account for 273 projects and the sum of N28.262 billion released from repayment account.

    It also showed that 30 state governments and the Federal Capital Territory accessed the sum of N39 billion from CACS fund from inception to March, 2014, while N1.304 million was recorded as repayments by four banks in respect of five projects during the period under review, bringing the total fund repaid to N32.928 billion in respect of 68 expired projects.

    Therefore, the balance of CACS receivable account fund as at the end of March, 2014 was N169 million, while the balance in the CACS repayment account stood at N4.665 billion.

    “From inception in 2009 to March 2014, 165,510 jobs were created; two out of the 269 private projects are owned and managed by women,” it explained.

    Under the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), the report showed that one Credit Risk Guarantee (CRG) valued N2 billion was issued during the review period. That took the total value to N16.272 billion in respect of 45 CRG cover issued from inception to date.

    On the other hand, seven Interest Drawback Programme (IDP) claims valued at N57.250 million were processed and paid during the review period under the NIRSAL. That made the total IDP claims paid under NIRSAL to N124.769 million in respect of 22 projects.

    The NIRSAL is a mechanism designed to provide farmers with affordable financial products, reduce the risk of financial institutions that grant them loans, build capacities of banks to lend to agriculture, as well as develop an incentive mechanism for Nigerian banks based on their commitment to agricultural financing.

    Some of the challenges encountered during the period included the validity of information provided by counter parties for CRG, review of the existing CRG guidelines to reflect the 12.5 per cent first loss principle in place of the face value currently being issued; and the low public awareness and poor perception of NIRSAL.

  • Implementation of 15% CRR begins today

    Implementation of 15% CRR begins today

    The Central Bank of Nigeria (CBN) will today begin the implementation of the 15 per cent Cash Reserve Ratio (CRR) on private sector deposits announced at the March 24 meeting of the Monetary Policy Committee (MPC).

    CRR is a portion of banks’ deposits kept with the CBN as reserves.

    It enables the CBN to control the money in circulation to strengthen the naira.

    Last month, seven members of the MPC voted to increase CRR by 300 basis points to 15 per cent; two voted to retain the CRR at 12 per cent.

    The committee decided by a majority vote of five to four to hold the MPR and its corridor at current levels, but raised the CRR on private sector deposits by 300 basis points to 15 per cent.

    Among four Sub-Saharan African countries, Nigeria’s banking sector has the highest CRR, at 15 per cent for private-sector customer deposits plus 75 per cent for public sector deposits, a report by Renaissance Capital (RenCap) has said.

    In Ghana, the CRR is nine per cent; Kenya is 5.25 per cent and Rwanda five per cent.

    RenCap said it could not rule out the possibility of further CRR hike as the regulator appears to be using the CRR as the primary monetary tool for mopping up excess liquidity.

    “Our reading of the above is that the risk of a further hike in the CRR cannot be ruled out if the Monetary Policy Committee sees renewed pressure on the naira. The worst-case scenario, we believe, is that the CRR on public-sector deposits could be raised as high as 100 per cent, increasing our estimate of the blended CRR in Nigeria to 23 per cent. On our numbers, the hit to interest income over a year would increase to three to 14 per cent,” it said.

    It said in view of increased market liquidity following the Asset Management Corporation of Nigeria (AMCON) bond maturity as well as an increased spread between the interbank foreign exchange rate and Bureau De Change rates, the move is not surprising.

    “It is a clear demonstration of the CBN’s continued commit-ment to foreign exchange stability, even in a more difficult environment. Should the foreign exchange rate come under further pressure, key threats might be related to quantitative tapering, concern over the transition at the CBN, and ongoing concern about oil receipts as well as Nigeria’s political cycle – then more tightening cannot be ruled out,” it added.

  • Sanusi gets May 20 verdict date in suspension suit

    Sanusi gets May 20 verdict date in suspension suit

    Justice Gabriel Kolawole of the Federal High Court, Abuja has fixed May 20 for judgment in the suit by suspended Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi.

    The judge picked the date yesterday after a six-hour legal battle by lawyers to parties in the case. Proceedings began at 11.30 am and ended around 5.30pm.

    The court took arguments on both the defendants’ preliminary objection and the substantive case.

    Sanusi is challenging his suspension by President Goodluck Jonathan. Attorney General of the Federation (AGF) and the Inspector General of Police (IGP) are co defendants.

    Plaintiff’s lawyer, Kola Awodein (SAN) argued that the President lacked the powers to unilaterally suspend the CBN Governor despite his alleged offence.

    He argued that the President’s exercise of the executive powers provided in the Constitution was subject to the Act of the National Assembly.

    He contended that in this case, the President was expected to exercise his power to remove the CBN governor in accordance with the provision of the CBN Act.

    “There is contention that there is no power to suspend the CBN governor under the CBN Act. The ACT in section 7(4) has provided when somebody can act in the place of the CBN governor,” he said.

    Awodein argued that the since there is no provision for the suspension of the CBN governor in the CBN Act implies that the President has no powers to suspend the governor.

    He further argued that the express mention of one thing is the exclusion of the other, to support his position that the non-reference to suspension in the Act implies that it is not allowed.

    “If it was the intention of the law to give the President the power to suspend, it would have expressly provided that,” he said, stressing that the CBN Act has effectively prohibited the President from suspending the governor of the CBN.

    He argued that under Section 1(3) of the CBN Act, the bank is made an independent body with the intention of making the bank operationally independent, so that there will not be interference of any sort in its operations, except as permitted under the Act.

    Awodein contended even if the President was to exercise control over the bank, which include the suspension of its governor, such must be done with the support of 2/3 majority of the Senate.

    He urged the court to hold that his client has made out a proper case for the court to void his suspension.

    Responding to the defendants’ objection to the suit, Awodein argued that the defendants misconstrued the plaintiff’s suit.

    He contended that the suit simply seeks the court application of its interpretative powers to interprete the provision of the CBN Act vis a vis the action of the President.

    Awodein argued that the defendants were in error when argued that the case was employment related and should be struck out.

    He argued that as against the position of the defendants, the plaintiff. Is not an employee of the President to have qualified that case as a dispute between an employee and an employer. He said his client is an employee of the CBN,

    He urged the court to dismiss the defendants’ objections.

    Defence lawyers – Fabian Ajogwu (SAN), Mike Ozekhome (SAN) and Solomon Umoh (SAN) had while arguing the preliminary objections, urged the court to strike out the suit because it was employment related.

    They argued the by virtue of Section 254(1)(c) of the Constitution, the Federal High Court lacked the jurisdictional powers to hear the case.

    The defence lawyer further argued that the plaintiff’s claims were caught by the exclusivity confered on the National Industrial Court by 4ection 254(1)(a) of the Constitution.

    On the main suit, they argued that the suspension of the plaintiff by the President was within his powers. They contended that the CBN was an agency of the Executive arm of the Federal Government, whose powers as contained in Section 5 of the Constitution is vested in the President.

    They contended that the plaintiff is a public officer and an employee of the Federal Government by virtue of his appointment, was not immune to the control of the President.

    They argued that the President, in suspending Sanusi did not terminate his employment, but merely asked him to step aside to enable the Financial Regulatory Council (FRC) a statutory body, perform it’s it’s role of investigating allegations of procedural and financial breaches raised against him.

    The defence lawyers noted that the suspension was intended to enable an unbiased investigation of allegations that Sanusi awarded contract of about N163billion, amounting to 63 per cent in excess of the CBN’s authorised share capital.

    They urged the court to hold that the President acted within his powers and dismiss the suit.

    Before the commencement of proceedings, the judge denied insinuations that he was under pressure from the defendants in his handling of the case.

    There had been rumours that in view of the last victory recorded by Sanusi before a Federal High Court in Lagos, the judge in Abuja was being put under pressure to determine the case in the Abuja FHC against Sanusi

    Justice Kolawole yesterday dismissed the insinuations, insisting that he was not under pressure from any of the defendants in the suit.

    The judge said he would gladly yield the case to be returned to the Chief Judge for reassignment to another judge if parties in the case were doubting his integrity.

    “Is it by the President, or the AGF, or the IG? Is it the Federal Government that is pressurising Justice Kolawole to do a case against a party?

    “I am saying this to give the plaintiff the opportunity to go to another court. I have spent several years on the bench and I can tell you that nobody pressurises me – nobody is pressurising Justice Kolawole on this matter.

    “I said I will mention this not to create sensation but for anybody who is not comfortable to go to another place.

    “If I am being pressurized, it is by my own conscience. None of the parties should be under the impression that I am being pressurized by the Federal Government.”

    “Anybody who does not have confidence in Justice Kolawole in this case should go back to the Chief Judge (of the FHC).

    “This kind of thing is highly demoralising. You do your best for your country and yet all this kind of things keeps coming up. Must every judge be corrupt?” the judge said.

    He noted that if he was unfair to all in the manner he was handling the case, he would not have adopted an accelerated approach by choosing to hear the preliminary objections and the originating summons simultaneously.

    In their separate reactions to the judge’s comments, lawyers in the case assured the judge of confidence in him. They said they had never and would not question his integrity and ability to dispense justice to the case.

    Sanusi’s lawyer, Kola Awodein, SAN, said he was ready to go ahead with the case before Justice Kolawole.

  • CBN, GDP rebasing and financial inclusion

    CBN, GDP rebasing and financial inclusion

    What is the implication of Sunday’s rebasing of the Gross Domestic Product (GDP) for the financial inclusion policy of the Central Bank of Nigeria (CBN)? To analysts, it is negative. COLLINS NWEZE reports that stakeholders will have to work harder to address this ‘negative impact’.

    Sunday’s rebasing of the Gross Domestic Product (GDP) may have thrown up some challenges for banks, which are grappling with the policy of the Central Bank of Nigeria (CBN) on financial inclusion. The CBN advised banks to provide access to financial services and products to reduce the number of the under banked.

    According to CBN, the financial inclusion strategy is meant to reduce the number of adult Nigerians excluded from formal financial services from 46.3 per cent in 2012 to 20 per cent in 2020, with specific targets for payments, savings, credit and insurance.

    It said sustaining Nigeria’s development would ensure that at least 80 per cent of adult Nigerians have access to financial services as well as the right environment in which to flourish. This desire prompted the CBN to issue Agent Banking Guidelines to reach the grassroots where bank branches are scarce, but services highly needed.

    Banks have also simplified account opening procedures, lowering minimum account opening deposit to as low as N1,000. Also, the Know Your Customer (KYC) policy requirements have been eased to accommodate the grassroots.

    Despite these efforts, analysts think higher GDP implies that banking penetration is lower than the previous GDP series suggested. They also said the gap between Nigeria’s and East Africa’s bank penetrations is even bigger than was thought.

    Renaissance Capital (RenCap) sub-Saharan African banks analyst Nothando Ndebele said the economy would reflect the sectoral distribution of the industry’s loan book.

    She said: “Kenya’s loans/GDP of 38 per cent is almost double that of Nigeria, at 21 per cent against 38 per cent pre-rebasing. This explains why retail banking in Nigeria is at a nascent stage. But we think this means the banking sector’s growth potential is even greater than we initially thought.”

    The CBN said financial inclusion has been defined in various ways around the world, but the essence of inclusion is tied to economic development and providing a better way of life for Nigerians.

    The regulator has over the years recognised certain barriers to achieving inclusion some of which include distance to bank branches, cumbersome account opening requirements, lack of awareness of financial products and services, among others.

    “As a regulator, we also recognise the challenges deposit money banks face in trying to reach the underserved communities which include the cost incurred by the banks in catering to lower valued accounts and the cost of expanding their branch networks to excluded communities,” it said in a statement.

    The apex bank has, however, taken a stand to ensure that these barriers are broken and several steps taken to address these constraints have been taken. Some of these include agent banking. The guidelines for agent banking have been approved by the CBN. They are to ensure increased agency in the delivery of banking services outside traditional brick and mortar bank branches, through additional financial access points, such as existing retail stores, petrol stations, post offices or via technology such as ‘Point of Sale’ (POS) devices and mobile phones.

     

    What banks are doing

    To drive agent banking system that was recently introduced in the country, Sterling Bank Plc has deployed biometrics enabled point of sale (PoS) terminals at its agent banking outlets in the country. The bank said the move would promote financial inclusion.

    At a forum in Lagos, Group Head, e-Business, Sterling Bank, Mr. Fatai Amoo, said about 30 million Nigerians can’t read or write, adding that the device would help bring them into the banking system. With the biometric solution, all that is required from customers are their fingerprints.

    He said: “We have over 30 million adults who are unlettered and whenever they want to use their ATMs they would tell anybody around their pin. We all know that, that is risky and a lot of people have fallen victim. Our agent banking solution has brought to an end, this kind of issues. We have been able to deploy a solution that runs on biometrics. Whether you are lettered or not, literate or illiterate, God has given all of us our fingers.”

    Heritage Bank is also offering traders and artisans of Gbagada Plank Market in Lagos agent banking services. In a statement, the bank said the customers now have the opportunity to enjoy financial services without visiting any physical branch location.

    The lender, last week, launched its agent banking scheme with the opening of what it calls the ‘Corner Shop’ bank in the market.

    “The choice of the market as the first place to launch our agent banking is deliberate. We decided to launch our agent banking in this market because of the importance we attach to the business that you do”, its Executive Director, Ivory Banking, Mary Akpobome said.

     

    How it works

    The use of biometrics-enabled PoS with a well-tested application that has been successful in India that shares some similarities with Nigeria; agents that are carefully selected are then authorised to carry out certain transactions, among others for customers under the scheme such as the enrolment of new customers in line with the CBN Level KYC requirements, deposits, withdrawals, airtime top-up and bill payment and funds transfer.

     

    Hitches

    This cannot be done with the unbalanced distribution of bank branches in the country. According to the Nigerian Deposit Insurance Corporation (NDIC), out of the 869 licensed micro finance banks (MFBs) in the country, 346 or 39.8 per cent are located in the Southwest geopolitical zone, 162 or 18.64 per cent in the Southeast, 158 or 18.8 per cent in the Northcentral while only 63 or 7.2per cent and 32 or 3.6 per cent are located in the Northwest and Northeast. Lagos, Anambra and Abuja have the highest number of MFBs.

    Agent banking is part of efforts to increase the level of financial inclusion in the country, according to the Managing Director of the NDIC, Alhaji Umaru Ibrahim.

    Agent banks operate in simple ways such that they could be operated by supermarkets, gas stations, stores and the likes as they are not full-fledged banks. The Kenyan model of agent banks are usually equipped with a combination of PoS card reader, mobile phone, barcode scanner to scan bills for bill payment transactions, Personal Identification Number(PIN) pads, and sometimes personal computers (PCs) that connect with the bank’s server using a personal dial-up or other data connection.

    Clients that transact at the agent banks use a magstripe bank card or their mobile phone to access their bank account or e-wallet respectively. Identification of customers is normally done through a PIN, but could also involve biometrics. With regard to the transaction verification, authorisation, and settlement platform, banking agents are similar to any other remote bank channel.

    According to the NDIC chief, agency banking would go a long way in reaching out to the largely unbanked population by creating banking representations where banks ordinarily do not have enough resources to establish branches.

    Ibrahim said agent banking is a complementary policy that is worthy of emulation as it would provide simple banking services to a variety of people on behalf of various banks.

    Analysts say agent banking has the potentials to grow access to banking facilities in the country especially to the uneducated and those in rural areas. Another area where agents could be meaningfully deployed is in the mobile payment system as successfully done in Kenya and some other countries.

    Agent banking, however, comes with its own risks as banks and their customers would be faced with agent fraud, unauthorised fees, loss of customer assets and records, data entry errors, system failures as well as a host of others.

    These, they noted would have negative impact on the image of the banks affected as customers’ confidence in them would water down, lowering their customer and profit base.

    On how agent banking could impact the universal banking model, the NDIC chief stated that it would only complement the current banking models. He dispelled fears that banks with national banking license would become lax in branch expansion saying “the banks will now be able to decide which will be more cost effective for them in reaching out to their customers, either opening up branches or using agent banks.”

    In 2009, the CBN adopted measures to open up banking channels to non-bank agents. An amendment to the Banking Act (passed as part of the Finance Act 2009) allowed banks to start using agents to deliver financial services. Using small shops, petrol stations, pharmacies and other retail outputs as agents could have a dramatic impact on improving access to financial services, especially in rural areas.

    According to Principal Associate, MobileMoneyAfrica Emmanuel Okoegwale, there is need to define clear operational processes, guidelines and procedures for operating and managing an agency network will improve the spread of financial services along areas of strong compelling needs.

    He noted that a lesson ought o have been learnt from the micro-finance sector “where providers that were supposed to be active in the underserved and rural communities where competing with commercial banks on high street and chasing after high net worth depositors to the detriment of the rural unbanked.”

    Without doubt, agent banking will favour the banks in terms of profitability and spread, but there is still the issue of trust as much would not be achieved without enough provisions made for customers’ protection.

     

    Kenya example

    The agent banking model started in May 2010 after Kenya changed its laws to allow commercial banks to offer their services through third-party businesses which has helped raise the profits and spread of the country’s bank.

    The agents are conveniently located at commercial outlets like shopping malls, post offices, petrol stations, laundry shops, cybercafés, chemists, eateries and supermarkets, with the belief that people will deposit cash, withdraw and open accounts, services that most people seek in banks, through agents.

    However, the Kenya model seems to be having trust issues as local media in the country report that bank customers still prefer to make use of the banking halls rather than the agents who are much closer to them.

    Some customers said they preferred to make use of the banking halls due to confidentiality of the banks compared to the agents as well as the charges they have to pay when they use the agents.

    Although agent banking was introduced in the country as a measure to decongest the banking halls, the banks continue to service more customers than the bank agents.

    It is said while some tellers in the banking halls serve more than 200 customers daily, some banking agents serve less than five people per day in Kenya.

  • CBN: Limit for naira card is $150,000

    CBN: Limit for naira card is $150,000

    The Central Bank of Nigeria (CBN) has raised the limit for naira debit and credit cards use from $40,000 to $150,000 yearly.

    But this is subject to the monthly returns by authorised dealer banks and card issuers to the CBN.

    According to the apex bank, settlement for the cards would remain interbank funds, adding that recipients of International Inward Money Transfers would be paid in naira only.

    It said the exchange rate for conversion of the proceeds would be the interbank rate on the day of payment by the dealer. Also, dealers are required to display the naira exchange rate in their banking halls.

    “Recipients of proceeds of International Inward Money Transfers shall, henceforth, be paid in naira only. The applicable exchange rate for conversion of the proceeds shall be the prevailing interbank rate on the day of payment by the authorised dealer. Accordingly, authorised dealers are required to conspicuously display the prevailing Naira exchange rate in their banking halls,” it said.

    Dealers, the CBN added, would continue to sell foreign exchange cash to Bureau De Change (BDC) subject to a maximum limit of $250,000 weekly per BDC. Dealers are required to conduct Know-Your-Customer (KYC) checks on the BDCs they deal with.

    Furthermore, the apex bank said BDCs are required to render weekly returns on use of funds bought from all sources to the CBN, or sanctions would be imposed.

    Also, importers who wish to pay for import of non-regulated products worth not more than $250,000 per year by telegraphic transfer shall only complete e-Form “M” supported with proforma invoice.

    However, the shipping documents shall be submitted to the bank by the importer not later than 90 days from the date of the transfer.

    It advised dealers to report defaulters to the CBN monthly for sanctions. The selling rate of foreign exchange by dealers shall be the interbank exchange rate plus a margin not exceeding one per cent, while foreign exchange cash bought by BDCs from dealers and the CBN shall be sold to foreign exchange end-users at a rate not exceeding two per cent margin above the buying rate.

     

  • Banking to resume in Kwara community, says CBN

    Banking to resume in Kwara community, says CBN

    Normal commercial banking will resume soon in Omu-Aran, headquarters of Irepodun Local Government Area of Kwara State, Acting Governor of the Central Bank of Nigeria (CBN), Mrs. Sarah Alade, has said.

    About 11 months ago, commercial banks in the ancient town suspended banking following violent robbery incidents that affected some of them.

    Specifically, a robbery attack on May 14, last year led to indefinite closure of commercial banking operations in the town, forcing residents to travel more than 60 kilometres for their banking transactions.

    Alade gave the assurance this yesterday in Omu-Aran while handing over two Hilux pick-up vehicles donated by the community to the Police.

    Represented by the CBN Branch Controller in Ilorin, Mr Monday Olotewo, the Mrs Alade said the bank is aware of the community’s social and economic predicament following the closure of banking operations.

    She said the assurance given the community was based on the high level synergy between the community and law enforcement agencies.

    She said: “It is always a precarious situation for us in the banking sector, particularly the CBN to continue to witness indefinite closure of bank branches as a result of incessant armed robbery attacks.

    “But when such attacks now involve loss of precious lives, it becomes more compounded.

    “But the good news is that with the level of commitment shown by the people of Omu-Aran community, with this donation and other efforts in assisting security agencies, I assure you of the re-opening of the banks very soon.”

    State Commissioner of Police Ambrose Aisabo expressed happiness at the community’s gesture, and promised to make judicious use of the vehicles.

    He urged financial institutions to furnish the command with useful security tips on how to improve security around them.

    He said: “I am assuring the Omu-Aran community that these vehicles will only be used to service the immediate security needs of the town.

    “With the presence of all security apparatus in Omu-Aran, the police including regular and mobile units, Special Anti-Robbery Squad, and the Military patrol team, I think the banks can start their operations.”

    Also speaking, the President, Omu-Aran Development Association (ODA) Chief Peter Oyinloye, President said the association would also assist the police in the maintenance and fuelling of the vehicles to achieve smooth operations.

  • Banks’ assets, liabilities hit N24t

    Banks’ assets, liabilities hit N24t

    The total assets and liabilities of Deposit Money Banks (DMBs) stood at N24.3 trillion at the end of the fourth quarter ended December 31, last year, a Central Bank of Nigeria (CBN) Quarterly Economic Report has shown.

    According to the report, the figure represents an increase of 4.4 per cent over the level at the end of the preceding quarter.The funds, it said, were sourced, largely, from increased mobilisation of demand deposit and Federal Government’s deposit.

    The CBN said banks’ credit to the domestic economy rose by 8.6 per cent to N12.2 trillion, when compared with date from the preceding quarter. The development, it said, was attributed, largely, to the 346.9 per cent increase in claims on the Federal Government. However, apex bank’s credit to the banks fell by 1.6 per cent to N229.8 billion, reflecting the decline in overdrafts to banks, while total specified liquid assets of the DMBs stood at N6.6 trillion, representing 39.5 per cent of their total current liabilities.

    Also, the liquidity ratio rose by 1.8 percentage points above the level in the preceding quarter, and was 9.5 percentage points above the stipulated minimum ratio of 30 per cent.

    The report further showed that loans-to-deposit ratio stood at 36.3 per cent, and was 2.9 percentage points above the level at the end of the preceding quarter, but was 43.7 percentage points below the prescribed maximum ratio of 80 per cent. The quarterly report also showed that the gross domestic product (GDP) was estimated to have grown by 7.7 per cent, compared with 6.8 per cent in the preceding quarter. The development, it said, was driven, largely, by the growth in the non-oil sector.

    Broad money supply (M2), grew by 9.1 per cent, in contrast to the 7.9 per cent decline recorded at the end of the preceding quarter. The CBN said the development reflected, largely, the 14.9 per cent increase in domestic credit (net) of banking.

    Similarly, narrow money supply (M1), rose by 11.4 per cent, in contrast to the 9.3 per cent decline at the end of the preceding quarter.

    Over the level at end-December 2012, broad money supply (M2) grew by 1.2 per cent, owing largely to the 18.5 per cent increase in net domestic credit, which more than offset the 26.0 and 5.9 per cent decline in other assets (net) and foreign assets (net) of the banking system.

    Reserve money (RM) rose at the end of the fourth quarter of last year.Available data indicated that banks’ deposit and lending rates trended upward, while the weighted average inter-bank call rate fell by 3.23 percentage points to 11.02 per cent, reflecting the liquidity condition in the inter-bank funds market.

     

     

    Provisional data indicated that the value of money market assets outstanding increased by 4.1 per cent to N6.8 trillion, compared with the increase of 5.7 per cent at the end of the preceding quarter. The development was attributed to the 4.7 and 3.9 per cent increase in Federal Government of Nigeria Bonds and Nigeria Treasury Bills outstanding, respectively. Also, total federally-collected revenue was 22.3 and 19.8 per cent below the quarterly budget estimate and the level in the preceding quarter, respectively. Oil receipts, which constituted 69.9 per cent of the total, fell below the budget estimate and receipts in the preceding quarter by 20.4 and 5.2 per cent, respectively. The decline in oil receipts was attributed to the fall in crude oil and gas exports during the review quarter.

     

  • CBN, Ministry of Finance urged to collaborate on rates stability

    The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have been urged to collaborate to ensure price and exchange rate stability in the country.

    Mr Kyari Bukar, the Managing Director of the Central Securities Clearing System (CSCS), made the call in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

    Bukar said that the two agencies needed to collaborate to achieve their objectives of stabilising the economy.

    He said that the two institutions should be ready to check the likely effects of high spending that could arise from electioneering period, which he said, was customary in a democratic dispensation.

    Bukar said that high spendings could trigger imbalance in the economy, stresssing that ”when you spend, you open up a kind of war because there will be more money in the system”.

    He said that it was because of this that the CBN and the Monetary Policy Committee (MPC) raised the Cash Reserve Ratio (CRR) from 12 per cent to 15 per cent in March.

    Bukar said the purpose of the increase in CRR was to mop up money from the system.

    According to him, the decision will have made the CBN to withdraw between N350 billion or N400 billion from circulation.

    Bukar said that the decision tightened liquidity in the system, making it difficult for Nigerians and institutions to use such funds on other things.

    He said that the withdrawal would lessen the pressure on the naira.

    ”There is spending galore that is coming into the system.

    ” So, the MPC had to quickly take a watchful eye on the price rate and exchange rate,” he said

  • Agodi Museum; CBN cheap loans; ‘Masterminds of Mass Murder’: Soka/ Sambisa Forest Terrorists

    Agodi Museum; CBN cheap loans; ‘Masterminds of Mass Murder’: Soka/ Sambisa Forest Terrorists

    Welcome to the New Agodi Gardens compliments of Ajimobi Oyo government –Public-Private Partnership (PPP). Government could make this different from Gardens and Parks, GAP, in Nigeria which are empty of intellectual stimulation. Government should put money into and encourage the developer to put a new, big, different ‘Agodi Inspirational Exhibition/ Museum’ with ‘shock and awe’ material from major research institutions. To challenge Ibadan visitors and residents, the developers and government especially the Ministry of Science and Technology could invite for display projects from students, creative artists, the 80 departments in University of Ibadan, the 30 in UCH, Polytechnic, IITA, CRIN, FRIN, NISER, NIG-Sat and Corporate Ibadan like Procter and Gamble, Coca Cola, Zartec, etc in education, health, photography, sculpture, technology, history, culture fisheries etc.

    So Odein Ajimogobia, has reiterated this column on March 12 ‘Too many geriatrics and too few 30-50 year olds’ at the 2014 Non Sovereign ‘snooze’ National Conference. Students should calculate how many delegates are over 80, 70, and 60. Are we cursed, mumu or just blessed with good humour in the face of a permanent failure to succeed inflicted by our now geriatric leadership? Have they no shame, still seeking the spotlight in the economic and electricity darkness they caused?

    Since 1966, years of religio-ethnic aggression rammed through by military fiat has been met by an increasing religio-ethnic defence, sometimes suicidal, just like in any lethal football game. Jonathan is not a geriatric and did not choose over 380 of the delegates. So he is not guilty of religious bias if indeed there is any. Let the Sultan ‘send forth emissaries’ to examine the states and other ‘biased’ constituent bodies. Complaints at the religious bias in many pre-Obasanjo past government appointments and in several including Lagos State for 40 years have always fallen on deaf ears. Token posts to the few ‘outsiders’ without power were the ‘keep quiet and shut up’ lot of most Nigerians while religious/ethnic zealots, under the protection of the religious/ethnicised military and prostituted political classes, warped the federalism to suit themselves. They now seek to preserve that criminally warped state of the distorted nation. They thus created the very reason why a National Conference is so essential now- to right the wrong federation imposed upon so many Nigerians ruining their future for years. Interestingly many traditional rulers have major military affiliations and are centrist, or unitary-federalist, false federalist, in nature as they benefit from federal and even CBN handouts if they are in the favoured religio-ethnic class.

    So are we beyond the redemption of even a geriatric dominated Non Sovereign National Conference, the old brigade from all corners of Nigeria, all with religious, traditional, political, baggage? As younger citizens, they led us blindly to the perdition of maximum corruption, a 17,500% fall in naira, maximum power darkness and maximum high interest rates in the world and worst education scores and even maximum Boko Haram? But rich from eating Nigeria, their families all have mansions and billions! As snoozing old men are they threatening to donate a piece of Nigeria to Cameroon? This, even though history lessons in school taught us Adamawa’s Emir is from a three percent minority which invaded Adamawa. Is that correct? Hardly an example of democracy 100+ years down the line.  Why should such people want change in ‘status quo’ in spite of glaring failures?

    The events at CBN show us how CBN was run under the military and even under Sanusi with largess being distributed largely to the favoured with a few drops to others as camouflage. Today’s Nigeria is founded on, and flounders on and sufferers from, yesterday’s fraudulent ethnic politics and policies. If we had decentralised electric power or railways 30 years ago, where would power be now? How can we be ruled by people who say ‘No, you states cannot have rights to power, roads, railways, phones or waterways’? Are we slaves in our own country? Yes, there are very bad and greedy people in every state stealing the local budget. But even that does not negate federal evil and ‘secret agendas’ perpetrated with local collaborators in every state.

    Are we cursed by no or low power since 1978, high interest rate forever, lower value of the naira from $1:N1 in 1980s to $1:N173+ on parallel market, high unemployment plus the worst statistics in the world? New CBN governor: ‘Whose side are you on?’ CBN celebrates stable inflation rate but at murderous cost to the people. The banks miraculously declare 20-75% increase in profits as poverty bites. The ‘false stability’ is like ‘false federalism’ and kills business and people through high MPR, interest rates 25%, high sterilised funds in CBN and falling naira with more dying Nigerians- dying for jobs at NIS and from ‘No cheap loans’. CBN has killed more people and businesses than Boko Haram. Surprisingly, CBN knows the value of ‘cheaper’ loans which it gives to selectively ‘stimulate’ textile, aviation, Agric and Nollywood industries. The market trader and everyone also need cheap loans. When will interest rates come down? When all Nigerians are dead?

    The Soka Forest terrorism is similar to the Boko Haram terrorist camp in the Sambisa Forest for ‘Masterminds of Mass Murder’. We need routine mass police and local DPO surveillance and counter-measures. Elsewhere a man carrying 18 heads was picked up. Do police investigate or coordinate the investigation of the hundreds of ‘common man’ kidnappings yearly in each state? What forensics exist in Nigeria?

  • Charity begins abroad

    Charity begins abroad

    •We support Nigerians in Diaspora’s plan to stage protests abroad over the country’s ills 

    Nigerians in the Diaspora appear set to lead the way in staging protests over the unpleasant developments back home. In a full page advertorial signed by one Ms Onyenye-Chukwu Okereke for Nigerians in Diaspora for Accountability, based in the United Kingdom, the group made reference to the recent revelations of an unremitted $20billion to the Federation Account by the Nigerian National Petroleum Corporation (NNPC), which led to the purported suspension of Mallam Sanusi Lamido Sanusi, the Governor of the Central Bank of Nigeria (CBN).

    It also referred to the allegation that the petroleum minister, Mrs Diezani Alison-Madueke, spent N10billion to hire and maintain private jets for her personal use.

    The group, which is apparently piqued by the Federal Government’s complacency in fighting corruption, made a clarion call on “… all Nigerians in Diaspora to prepare for a public protest in London and Washington DC, if the minister is not immediately sacked by the President”. The protests would take place at the Nigeria High Commission, Nigeria House, 9, Northumberland Avenue, London and the Nigerian Embassy in Washington DC at dates to be communicated soon by the group’s coordinators in both countries. Although the group noted that the group executive directors of the NNPC had been sacked, it believed, and rightly so, that they were not the issue. “If Diezani is not sacked to redeem the nation’s image and reverse the rot in the NNPC …” Nigerians in Diaspora have been fully mobilised to embarrass the minister whenever she is on any international assignment abroad.

    We fully back this initiative if only for the simple fact that Nigerians at home are becoming increasingly docile for comfort. Indeed, it is amazing the way they have become so passive about the developments in the country. Corruption has continued to worsen, leading inexorably to chronic underdevelopment, power supply remains epileptic as ever, the number of idle youths keeps increasing and there is general insecurity in the country.

    There are several other issues that ought to have brought Nigerians out of their shell, perhaps to the streets, to tell the government ‘no more’. One of these is the recent death of 19 applicants seeking employment into the Nigerian Immigration Service (NIS). Nigeria is one of the few places where most of these strange things could be happening with the government going on with business as usual, and without anyone lifting a finger. It would appear that they have seen the worst of it all such that nothing shocks them again. This is bad for the country. So, if it takes this type of elixir by Nigerians in Diaspora for Accountability to make them alive to their responsibilities, so be it.

    Of course this would not be the first time that Nigerians outside of the country would be protesting against government’s policies and programmes at home. The 2012 fuel subsidy protests in the country were followed by such protests, first in London, from where it spread to parts of the United States and other countries, including South Africa, Ghana, Canada, Australia and Finland. Like the protests in the country, the protesters abroad also carried placards and sang, even as they spiced the protests with intermittent speeches in front of the Nigerian embassies in these countries and the International Monetary Fund office in Washington, as well as the UN headquarters in New York. The same thing happened during the efforts to revalidate the June 12, 1993 election result.

    Although with the advancement in IT, the world has become more or less a global village, such protests are not only symbolic, they also draw the unsavoury developments vividly home to the international community, in the hope that such externalisation of the issues could force the hands of government back home to do something about them.