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Tag: cbn

  • CBN: Disquiet over Jonathan’s silence on Deputy Governors

    CBN: Disquiet over Jonathan’s silence on Deputy Governors

    Barely 24 hours after the suspension of the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, President Goodluck Jonathan’s silence on the fate of the Deputy Governors of the bank was faulted yesterday by some top officials of the administration.

    The report of the Financial Reporting Council of Nigeria, upon which Sanusi was suspended, had recommended that the CBN Governor and his deputies should leave office.

    It was also learnt that the State Security Service (SSS) has returned Sanusi’s passport.

    The passport was allegedly seized in what a source described as a “routine” security check at the airport in Lagos.

    Investigation by our correspondent revealed that many government officials are wondering why Sanusi was singled out for suspension

    A part of the report said the President should “exercise the powers conferred on him by Section 11 (2) (f) of the Central Bank of Nigeria Act, 2007 or invoke Section 11 (2) (c) of the said Act and cause the Governor and the Deputy Governors to cease from holding office in the CBN and also direct the Financial Reporting Council of Nigeria to carry out a full investigation of the activities of the CBN…”

    A reliable source said: “There has been agitation for the President to implement the report in full instead of isolating Sanusi for sanction.

    “The Financial Reporting Council was explicit in its recommendations. Stakeholders even in CBN are worried that the Deputy Governors were spared by the President.

    “Going by the workings of the CBN, there was no way Sanusi could have acted alone. What was the role of the management in all these findings by the FRCN?”

    Another source said: “I think the government should not give us only a side of the FRCN’ report; it is about indictment of the CBN as a body. Let them tell us what they are doing about others.

    “Does it mean Sanusi was in charge of all units, procurements and supplies? Don’t we have Deputy Governors and Directors overseeing some of these contracts or projects awarded by CBN? Could Sanusi alone have initiated all these projects?

    “What was the role of the Board of the CBN in all the findings of the FRCN? I think there are many questions unanswered before Sanusi was hastily suspended.”

    There were indications yesterday that the State Security Service (SSS) might have returned Sanusi’s passport to him.

    A security source said: “I am aware that security operatives only went through his passport and it has been returned to him.”

    But a former Minister of Federal Capital Territory, Mallam Nasir el-Rufai, tweeted last night that he “just learnt that the SSS has obtained an arrest warrant that discloses no criminal offence to detain and gag Sanusi.

    The security source however said: “I do no think we have obtained a warrant to arrest Sanusi. As at 6pm when I left office, I had no knowledge of a warrant.”

    El-Rufai has explained why he would stand by the suspended Governor of CBN.

    The ex-Minister, who made his position known on Sanusi’s suspension in some tweets, said: “Sanusi Lamido Sanusi is my friend and brother since 1977. An injustice to him is an attack on me as well. I will be on his side through this and beyond.

    “First the gangsters illegally removed Justice Isa Ayo Salami. Then they tried to impeach Governor Rotimi Amaechi. Now they unlawfully suspended Sanusi Lamido Sanusi. Who is next?

    “The Jonathanians are not bothered about the law or bound by reason; they just want to stay in power at all cost.”

  • Central Bank of Nigeria Act, 2007

    Central Bank of Nigeria Act, 2007

    Disqualification and cessation of appointment.

    11. – (1) A person shall not remain a Governor, Deputy Governor or Director of the Bank if he is –

    (a) a member of any Federal or State legislative house; or

    (b) a Director, officer or employee of any bank licensed under the Banks and Other Financial Institutions Act.

    (2) The Governor, Deputy Governor or Director shall cease to hold office in the Bank if he –

    (a) becomes of unsound mind or, owing to ill health, is incapable of carrying out his duties;

    (b) is convicted of any criminal offence by a court of competent jurisdiction except for traffic offences or contempt proceedings arising in connection with the execution or intended execution of any power or duty conferred under this Act or the Banks and Other Financial Institutions Act;

    (c) is guilty of a serious misconduct in relation to his duties under this Act;

    (d) is disqualified or suspended from practicing his profession in Nigeria by order of a competent authority made in respect of him personally;

    (e) becomes bankrupt;

    (f) is removed by the President:

    Provided that the removal of the Governor shall be supported by two-thirds majority of the Senate praying that he be so removed.

    (3) The Governor or any Deputy Governor may resign his office by giving at least three months’ notice in writing to the President of his intention to do so and any Director may similarly resign by giving at least one month’s notice in writing to the President of his intention to do so.

    (4) If the Governor, any Deputy Governor of Director of the Bank dies, resigns or otherwise vacates his office before the expiry of the tem for which he has been appointed, there shall be appointed a fit and proper person to take his place on the Board for the unexpired period of the term of appointment in the first instance if the vacancy is that of –

    (a) the Governor or a Deputy Governor, the appointment shall be made in the manner prescribed by section 8(1) and (2) of this Act; and

    (b) any Director, the appointment shall be made in the manner prescribed by section 10(1) and (2) of this Act.

  • Zenith Bank’s Emefiele picked as Sanusi’s successor

    Zenith Bank’s Emefiele picked as Sanusi’s successor

    President Goodluck Jonathan on Thursday asked the Senate to confirm Mr. Godwin Emefiele as Central Bank of Nigeria (CBN) Governor with effect from June 2.

    Jonathan also requested the upper chamber to approve the appointment of Mr. Adelabu Adebayo Adekola as Deputy Governor of the apex bank.

    Before his nomination Emefiele was the Managing Director and Chief Executive of the Zenith Bank Plc.

    He will take over from Mallam Sanusi Lamido Sanusi as CBN Governor if confirmed.

    Sanusi, whose tenure will end on June 1, was suspended on Thursday over allegation of financial recklessness and misconduct.

    The nomination of Emefiele is contained in a letter dated February 19, 2014 entitled: “Appointment of Governor of the Central Bank of Nigeria,” read by the Deputy Senate President, Ike Ekweremadu, who presided over the plenary on Thursday.

    Jonathan said, “In view of the fact that the tenure of the current Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, will end on June 1, 2014 and pursuant to the provisions of Section 8(1) and (2) of the CBN Act, 2007, I hereby forward the name of Mr. Godwin I. Emefiele for kind consideration and confirmation by the Senate of the Federal Republic of Nigeria for appointment as Governor of the Central Bank of Nigeria.”

    Jonathan prayed the Senate to accord the consideration and confirmation of the nominee its usual expeditious consideration.

    For Adekola, Jonathan also asked the Senate to consider and confirm him as Deputy Governor of the apex bank.

    He will take over from Mr. Tunde Lemo who retired as CBN Deputy Governor recently.

    Adekola is an Executive Director with the First Bank of Nigeria Plc.

    Jonathan also asked that Senate to consider and approve the nomination of Alhaji Hassan Bashir (Bauchi State) and Hon. Lanre Fayemi (Ekiti State) as members of the National Population Commission.

     

     

     

  • Tambuwal: kerosene scarcity embarrassing

    Tambuwal: kerosene scarcity embarrassing

    House of Representatives Speaker Aminu Tambuwal, who was represented by his deputy, Emeka Ihedioha, yesterday delivered a speech at the opening of an investigative hearing on kerosene subsidy, decrying mystery surrounding the subsidy on the product. Excerpts:

    It is my pleasure to join the Chairman and members of the House Committee on Petroleum Resources (Downstream) to welcome you all to this all important national assignment being undertaken by the National Assembly on behalf of all Nigerians.

    You will recall that on 27th November, 2013, the House of Representatives in the discharge of its statutory mandate unanimously resolved to carry out full investigation on the expenditure, supply, distribution and subsidy on kerosene. The House mandated its Committee on Petroleum Resources (Downstream) to carry out this extensive investigation on her behalf for the benefit of all Nigerians.

    Kerosene has become the most topical issue in Nigeria today for several reasons. First, it has been empirically proven that at least 30 per cent of households depend on kerosene as source of domestic fuel. About 56 per cent of our population still depend on firewood due to lack of access to kerosene. The implication is that about 80 per cent of our population will most likely depend on kerosene as source of domestic fuel. Whatever affects 80 per cent of the population affects the entire country. As representatives of the people we have an obligation to ensure that our people are not made to pass through avoidable hardship.

    Secondly, today almost all our citizens will agree that it is easier to have access to gas and PMS than kerosene. The scarcity of kerosene has become a national embarrassment. It is so serious that the 7th House of Representatives in its first legislative year invited the Minister of Petroleum Resources to explain to the public through the instrumentality of the House at plenary. Since that time not much has improved on the supply and distribution of kerosene.

    Third, worse still when kerosene is available it is sold at such an exorbitant rate that Nigerians pay with their blood to get a little of kerosene. This obviously is not acceptable and cannot be in the best interest of our people.

    Fourth, the country has spent at least one trillion over the past four years to subsidize kerosene yet the product is neither available nor is it sold at the official NNPC pump price whenever it is found and wherever.

    Fifth, nobody can say what our kerosene consumption volume is per annum. Kerosene consumption volume cannot under any arrangement be a national secret. Transparency and accountability are things we should take for granted in 21st Century democratic Nigeria.

    Sixth, the masses, which is the justification for subsidy on kerosene, are in no way benefiting from the “subsidy”on kerosene thus NNPC needs to explain to the Nigerian people how it spent part of the $8.9bn, or $10.8bn or $20bn CBN accused her of not remitting to the Federation Account which NNPC claimed was spent on kerosene subsidy.

    Seventh, since there are no budgetary provision for subsidy on kerosene, the people of Nigeria will obviously be interested in knowing the source of funding of kerosene subsidy and on whose authority.

    These and several other issues warranted a full scale investigation to unravel issues surrounding kerosene subsidy so all Nigerians will be satisfied that kerosene subsidy is actually serving the interest of the masses. Because kerosene affects 80% of households in Nigeria, this is obviously a most strategic national inquiry.

    It is our fervent believe that the findings of this investigation will assist us as a nation better manage our resources, block leakages if any and ensure that all our people have access to kerosene at a competitive price.

    Most importantly the outcome of this investigation is expected to boost confidence of the people on the management of our economy and protect the people of Nigeria from unavoidable losses. Let me reiterate that this is a constitutional duty and not a witch haunting exercise. In the short life span of this 7th House of Representatives, we have made accountability and transparency our watchword as demonstrated in earlier investigative hearings conducted by the House.

    I urge all of you stakeholders; Ministers, Policy Makers, Government Officials, NNPC, Marketers, Retailers to give the National Assembly maximum co-operation for the interest of all Nigerians that we are serving. I charge the House Committee on Petroleum Resources (Downstream) to be guided by truth and fairness, and not uninformed public sentiment as history is watching all of us.

     

  • Reps probe N300b power, aviation fund

    Reps probe N300b power, aviation fund

    House of Representatives is concerned over the manner with which the N300billion Power and Aviation Intervention Fund (PAIF) is fast dwindling, Speaker Aminu Tambuwal said yesterday.

    He said it was regrettable that the fund, established by the Central Bank of Nigeria (CBN), had shrunk from N300billion to N100billion.

    Tambuwal assured that the ad hoc committee on the disbursement of public funds by the Bank of Industry (BOI), mandated to find out how the fund was being disbursed, would do a thorough job.

    The Speaker noted that it was the responsibility of the legislature to ensure that the public funds were not subjected to waste or corruption.

    He said: “We will devote attention to situations where the actions of government or any of its agencies infringe on the constitution. By some accounts, the volume of this fund, which originally amounted to about N300billion, has dwindled to less than N100billion.

    “Officials claim that over N200billion has been disbursed through deposit money banks to certain individuals and corporate organisations without following due process.

    “You will agree with me that we have a serious issue here, which falls within the precincts of the constitutional mandate given to the National Assembly that revenues belonging to the federation must be paid into the consolidated revenue fund. Withdrawals therein shall only be carried out solely upon the authority of an Act of the National Assembly.

    “It is the mandate of the legislature to ensure that where funds are so authorised to be withdrawn, they are not subjected to waste, corruption, or inefficiency. Section 88 of the 1999 constitution makes it mandatory for the National Assembly to protect the interest of the citizens and the tax payers, with respect to the use of public funds.”

    According to the Speaker, the National Assembly should not be ignored on its resolve to use the instrumentality of the constitution to correct the anomaly.

    “In this vein, we shall not hesitate to recommend appropriate sanctions where any such violation has been deemed to have occurred. However, we shall not pursue every rumour of misdeed or subject government officials to unnecessary harassment either,” he said.

    Yakubu Dogara, who chairs the ad hoc committee, said agitation from quarters that the disbursement of the fund did not follow due process, was responsible for the investigation.

    “In this process, specialised views and expert opinions are sought in a way that fully erases all time-inconsistencies as well as making-up for informed dynamics and complexities, which occur as a result of changing times,” he added.

     

  • Golden girls at war?

    Golden girls at war?

    Ngozi Okonjo-Iweala, PhD and Oby Ezekwesili, PhD, were the golden girls of Olusegun Obasanjo’s transparent presidency. If you have read Nasir El-Rufai’s Accidental Public Servant, you would have met the pair, among the other transparency holiest of holies, in their true habitat.

    There she was, Okonjo-Iweala: dollarised Finance minister, who never shared her glory with anyone; and who Rufai, in his book, insisted wanted total control of her Finance and economic domain (later proved by her Jonathan era epaulette of “Coordinating minister for the economy).

    There was Ezekwesili herself, the inimitable “Madam Due Process”.

    There was also the theorise-or-be-damned Chukwuma Soludo, later CBN governor. In early days, however, Soludo stormed out of Okonjo-Iweala’s “cabinet”, because she would not share her glory and Soludo was staging his own grandstand for presidential attention.

    Of course, there was the “muse” himself, El-Rufai: clean, antiseptic, uncompromising — like some good machine with human life!

    But how times have changed. Soludo has moved on to be replaced by an equally voluble Sanusi Lamido Sanusi. Goodluck Jonathan has become president. El-Rufai has moved into the opposition. Ezekwesili, it appears, is non-committal, except to public accounts transparency. Okonjo-Iweala has achieved her dreams — empress of the economy; but under an especially clueless president.

    And that is the cause of the “war” between the hitherto chummy golden girls. In the scandal of the “missing” $20 billion NNPC public money that won’t go away, Okonjo-Iweala and Ezekwesili have gone different paths.

    Dr. Okonjo-Iweala is dreaming forensic auditing, to clear the air once and for all, since NNPC has submitted some documents to explain — or explain away, as quite a number prefer — how the money was purportedly spent.

    But Dr. Ezekwesili is screaming putative cover-up without quite saying anything. To her, forensic audit is easily compromise-able. NNPC is flush with petro-dollars to resist compromising any firm — any firm at all — if it really has anything to hide. She would rather keep Diezani Alison- Madueke, Petroleum minister, out of the probe loop too.

    Hear Madam Due Process thunder: “The minister of Petroleum Resources is the chairman of NNPC Board. Her argument in overseeing a mere corporation, usurp the power of appropriation is awful.”

    And her vicious raking of Okonjo-Iweala: “Sadly, the minister of Finance stated that her ministry does not have the expertise to verify the impunity-induced expenditures by NNPC.”

    No smoking guns yet, of course; and the fiery Madam Due Process is pronouncing no one guilty. But she smells, it appears, putative cover-up, and is furious enough at the tragi-comedy, in an otherwise serious public finance scandal. “How awful,” she thundered, “to see some reduce serious conversation on missing US $20 billion to what the Yoruba call ‘Awada Kerikeri’ [serious comedy]. No, this is not comedy.” Gbam! It is not.

    So, she suggests an international probe panel, like one Paul Volcker headed, in war-time Iraq, to get to the root of the matter. Why not?

    So, what can set hitherto golden girls of governmental rectitude and public accounting transparency on such a take-no-prisoner war?

    It’s the clueless Jonathan Presidency, stupid.

     

  • CBN chief hails Aregbesola on security

    CBN chief hails Aregbesola on security

    THE Central Bank of Nigeria (CBN), Osun State branch, has hailed Governor Rauf Aregbesola for tightening security in the state.

    Branch Controller Mr. Macduff Okorode Effetabore said businesses thrive in a secure environment.

    Effetabore spoke at the weekend at the 2013 Dinner/Awards night for efficient banks at the Leisure Spring Hotel in Osogbo.

    He said: “There is a causal relationship between business and the environment. Conducive environment allows businesses to thrive. With the peace in the state, the required ennoblement for businesses to flourish has been given a boost. At this juncture, join me to appreciate the Chief Security Officer of the state, Governor Aregbesola.

    “Since he assumed office, he has created enabling environment for every citizen to go about his /her lawful business. Equally, appreciation goes to security agents –the Military, Police, State Security Service (SSS), Nigeria Security and Civil Defence Corps (NSCDC) and others who have contributed to the peace enjoyed in the state.”

    On the cashless policy, Effetabore said the implementation of the third phase would begin on July 1, adding that the CBN would hold sensitisation workshops in Osun State from February 25 to 27.

     

  • Missing oil money: Falana urges National Assembly to pass PIB

    Missing oil money: Falana urges National Assembly to pass PIB

    Lagos lawyer Mr. Femi Falana (SAN) has urged the National Assembly to pass the Petroleum Industry Bill (PIB).

    He said this would show that the federal legislators are genuinely interested in promoting accountability and transparency at the Nigerian National Petroleum Corporation (NNPC) and in the oil and gas industry.

    In a statement yesterday in Lagos, titled: The Limit of Investigative Powers of the National Assembly, the frontline lawyer regretted that the PIB appeared to have been quietly jettisoned by the lawmakers.

    According to him, the lawmakers were beating their chests for enacting irrelevant laws, such as the Anti-gay Act (“same-sex was never recognised under the law”), the Prisoners Exchange Act (to swap convicts with the United Kingdom when there are no British prisoners in Nigeria), among others.

    Falana said it was shameful that the Central Bank of Nigeria (CBN) Governor (Sanusi Lamido Sanusi) did not seem to understand the operations of the federation account, which is kept at the apex bank.

    The lawyer noted that this was the reason “…his (Sanusi’s) figures of the missing fund have varied from $49.8 billion to $12 billion and $20 billion, while the reconciliation carried out by the finance minister showed $10.8 billion.”

    Falana urged the auditor-general of the federation to audit the federation account and the accounts of the NNPC and the CBN before the nation is further exposed to ridicule by the CBN, NNPC and the Federal Ministry of Finance.

    He said: “In particular, the auditing of the CBN account should cover the illegal payment of over N2 trillion by the CBN to fuel importers in 2011 when the National Assembly appropriated N245 billion.”

    The lawyer recalled that before the 2012 national strike and mass protests, the CBN governor claimed that the amount involved was N1.3 trillion.

    Falana urged the auditor-general to also examine the validity of the several billions of naira allegedly withdrawn from the federation account without appropriation in the last five years and donated to certain individuals and institutions by Sanusi.

    He advised the Senate and the House of Representatives to desist from “endless probes” and concentrate on law making, “now that it is clear that the National Assembly lacks the power and the technical expertise to audit the federation account.”

    The frontline lawyer noted that if the National Assembly had seriously considered the reports submitted each year by the auditor-general and taken actions, the nation would not have heard the accusations and counter-accusations among senior government officials.

    Falana said: “In the last 15 years, the National Assembly has carried out diversionary probes of several agencies and departments without results.

    “It is pertinent to point out that the powers of investigation conferred on the National Assembly, under Section 89 of the Constitution, are meant to be exercised for law making. To that extent, the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Offences Commission (ICPC) and Nigeria Police Force should be allowed to investigate complaints of corruption, fraud and other economic and financial crimes, in line with the provisions of the laws.

    “The practice of usurping the statutory powers of such bodies by the National Assembly should stop. More so that reports of the investigation conducted by the National Assembly are usually turned over to the anti-graft bodies, which have to commence fresh investigation.

    “This is what happened last week when the Finance Committee of the Senate was compelled to call for an audit of the NNPC account in the middle of a probe.”

    The lawyer said it was embarrassing that the Finance minister and the Senate did not know, ab initio, that they were not empowered to audit any of the accounts of the ministries and agencies of the Federal Government.

    He recalled calling on the National Assembly to stop what he called diversionary probe and his request to the auditor-general to audit the federation account and submit his findings to the National Assembly pursuant to Section 85 of the Constitution.

    Falana added that the decision of the Senate that the NNPC accounts be subjected to a forensic audit was the result of the alleged confusion the CBN governor caused with “conflicting figures” over the actual amount allegedly missing from the federation account.

     

     

  • Banks and new employees

    Banks and new employees

    •The introduction of background checks on all employees long overdue

    Penultimate week, the Central Bank of Nigeria (CBN), demurred to the representations made by banks during the CBN/Banks Human Resources Forum of December 2013,  by modifying its extant circular of July 16, 2004, mandating banks and discount houses to obtain prior approval before engaging prospective staff.

    In its circular dated February 5, a new employee may now assume duty prior to obtaining the apex bank’s approval – in a situation where this proves difficult or impractical.

    The proviso here is that the employing bank is mandated to submit the employee’s Curriculum Vitae and other relevant information within 30 days of assumption of duty to the apex bank for necessary clearance. Also, the bank or discount house, is mandated to include in the employment letter, that the “offer is subject to the receipt of satisfactory responses on any background checks or other inquiries on the employee from relevant authorities”.

    As would be expected, the amendments exclude new employees on the grade of Assistant General Manager and above. For this category of staff, the banks are still required to continue to obtain the prior written approval of the CBN before they can assume duty. According to the CBN, the idea is “to prevent the recycling, within the banking industry, of erstwhile bank employees indicted, terminated or dismissed for fraud and other acts of dishonesty”.

    If only for the fact that the apex bank and the banks appear to be on the same page on the matter, we consider it a positive development. After all, the banks have in the nearly 10 years borne the brunt of the provisions of the extant circular; enough time for them to provide the apex bank authorities with necessary feedback about the challenges that they have had to put up with in the course of their recruitment exercises. As for the CBN, we understand that its role as the guardian of the industry has increasingly meant that it kept the tabs on the records of operators in the industry to minimise cases of moral hazards.

    Now that both have found a meeting point on the issue, it is also our understanding that the banks have accepted the responsibility to ensure that the new window afforded them is not abused in any way. In this, we understand where the CBN is coming from: the need to ensure that the individuals whose activities have helped in no small measure to bring the industry to ruin are not allowed into the industry through the back door.

    The point remains however that the July 16, 2004 circular and, by extension, the February 5, 2014 amendment are both reflective of the state of record-keeping in the industry. It is unfortunate that the financial services industry has not thought it fit to maintain a centralised, biometric database of employees over the years. Had the industry done so, it seems unlikely that the two circulars would have been anything but pointless and superfluous. It would have rendered pre-employment screening mere routine. Perhaps the time to begin the process is now.

    How to ensure that only those worthy of trust are availed employment opportunities is of course the issue.  Proper background checks on prospective employees are no doubt important, at least as far as reducing the possibility of offering bank jobs to characters with shady past. The issue is whether the requirement offers any real guarantees that such characters would still not manage to beat the system.

    Be that as it may, there is no question that the February 5 circular from the CBN is overdue.

     

  • Banks, discount houses get N314b CBN loans

    Banks, discount houses get N314b CBN loans

    The Central Bank of Nigeria (CBN) offered N314.22 billion to banks and discount houses to boost liquidity, according to the apex bank’s Economic Report.

    There are 21 banks and four discount houses in the country.

    The figure, the last November report of the CBN, stated, represents a daily average of N14.96 billion for the 21 business days. This is against the N263.36 billion with a daily average of N12.45 billion in the preceding month.

    The fund, which came as a Standing Lending Facility (SLF), was given at 14 per cent. It is an overnight CBN credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value.

    Interest paid on SLF in November stood at N0.09 billion, compared to N0.02 billion in the preceding month.

    The CBN showed that total assets and liabilities of the deposit money banks (DMBs) amounted to N23.5 trillion, showing a marginal increase of 0.2 per cent above the level at the end of the preceding month.

    Funds were sourced mainly from time, savings and foreign currency deposits, as well as accretion to unclassified assets. The funds were used, largely, to extend credit to the private sector and payment of claims on demand deposit.

    The report also said that DMB’s credit to domestic economy rose by 2.4 per cent to N11.5 trillion, above the level in the preceding month. The development was attributed largely to the rise in banks’ credit to the private sector during the review month. Total specified liquid assets of the banks stood at N6.6 trillion, representing 41.4 per cent of their total current liabilities.

    Further analysis of the report showed that liquidity ratio fell by 0.6 percentage point below the level in the preceding month, but was 11.4 percentage points above the stipulated minimum ratio of 30 per cent.

    The loans-to deposit ratio, which stood at 36.1 per cent, was 1.5 percentage points above the level at the end of the preceding month, but 43.9 percentage points below the prescribed maximum ratio of 80 per cent.

    Further, the CBN data indicated that total assets of the Discount Houses stood at N131 billion, showing an increase of 11.7 per cent. The development was accounted for, largely, by the 15.9, 14.8 and 7.6 per cent rise in claims on the Federal Government, Banks and “Others Assets”.

    Correspondingly, the increase in total liabilities was attributed, to the 32.5 and 4.1 per cent rise in money-at-call and other liabilities, which more than offset the 4.5 per cent fall in capital and reserves.

    Discount Houses’ investment in Federal Government securities of less than 91-day maturity rose by nine per cent to N36.4 billion and accounted for 35.4 per cent of their total deposit liabilities.

    At that level, discount houses’ investment in treasury bills rose by 16 per cent above the level at the end of the preceding month but was 24.6 percentage points below the prescribed minimum level of 60 per cent. Total borrowing by the discount houses was N45.07 billion, while their capital and reserves totaled N18.4 billion.

    The CBN attributed the significant increase in activities in the standing facilities window mainly, to the banks’ preference for depositing their overnight balances at the discount window rather than placing at the interbank.

    It explained that money market rates were influenced by the liquidity condition in the banking system arising from the introduction of the 50 per cent Cash Reserve Ratio (CRR) on all public sector deposits, coupled with the delay in the release of fiscal allocation. The CRR on all public sector funds has been raised further to 75 per cent at the January 21 Monetary Policy Committee (MPC) meeting of the CBN.

    The CBN had, during the MPC meeting, maintained the Monetary Policy Rate (MPR) at 12 per cent, and kept the symmetric corridor of plus two per cent around the MPR for SLF.

    However, the SLFs are available only to banks and discount houses that have executed the Nigerian Master Repurchase Agreement (NMRA) with the regulator.

    It covers the SLF and addresses issues pricing, duration, custodian as well as default resolution in lending.

    The MPC said the CBN is taking immediate step to redress the supply-demand imbalance in the BDC segment while maintaining its focus on anti-money laundering.