The Nation Newspaper

Tag: cbn

  • CBN injects $210m into forex market

    CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into various segments of the inter-bank foreign exchange market.

    The CBN had at the trading, offered $100 million as wholesale interventions and allocated $55 million to the Small and Medium Enterprises (SMEs) forex window. Customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, equally got an allocation of $55 million.

    CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, confirmed the sales, reiterating that the bank would sustain its interventions in the foreign exchange market.

    He expressed optimism that the value of the naira would continue to spike in the face of accretion to the foreign reserves and the attendant reduction in the country’s import bill.

    While also attributing the stability in the market to the bank’s transparency and cooperation of authorised dealers, he urged all dealers to continue to play by the rules, as the CBN would not hesitate to sanction any erring bank or dealer.

    Meanwhile, the naira continued to maintain its stable run against major currencies around the globe, exchanging for N362/$1 in the bureau de change segment of the market as at yesterday.

  • RIFAN begins registration of 2,000 rice farmers in Daura LGA

    RIFAN begins registration of 2,000 rice farmers in Daura LGA

    Daura Local Government chapter of Rice Farmers Association of Nigeria ( RIFAN ) has commenced the registration of 2,000 large scale rice farmers under the Central Bank of Nigeria ( CBN ) Anchor Borrowers’ Programme.

    Alhaji Nura Baure, the Chairman of the Association, made the disclosure in an interview in Daura on Monday.

    He said that under the large scale farming scheme, the farmers would be provided with sufficient farming inputs including fertiliser, insecticides, water pumping machines, seedlings and cash, to ensure bumper harvest.

    Baure assured that the distribution of the implements and disbursement of cash to the registered large scale farmers would begin by the end of February.

    Read also: RIFAN seeks collaboration with African countries on rice production

    According to the Daura RIFAN chief, the association will be more meticulous in the registration of members in the council area, as only genuine farmers will be registered.

    He said that so far, 300 women have been registered for the large scale farming programme, adding, “we recorded significant improvement this time, as only 20 women keyed into the Small Scale Farming Borrowers’ Programme in 2017.”

    Baure said that 500 metric tons of rice was harvested in the last cropping season under the Small Scale Anchor Borrowers’ Programme.

    He said that about 40 per cent of beneficiaries of first tranche disbursement under the small scale farming programme had repaid their loans.

    The chairman lauded the Federal and Katsina State Governments, for awarding the reconstruction and renovation of the Sabke Dam in Mai’ adua Local Government Area and that of Dabiram Dam in Daura Local Government.

    Sabke dam will produce 31.6 million litres of water while that of Dabiram will have 15 million litres

    1,500 farmers in the area benefited from the CBN Anchor Borrowers’ agricultural programme in 2017.

    NAN

  • Forex market intervention: ‘CBN spends $15.9b’

    Forex market intervention: ‘CBN spends $15.9b’

    The Central Bank of Nigeria (CBN) has spent $15.9 billion in nine months in its weekly intervention in the foreign exchange (forex) market, Managing Director, Afrinvest Securities, Ayodeji Ebo,  has said.

    He spoke at the Finance Correspondents Association of Nigeria (FICAN) Economic Outlook with the theme: Nigeria economy and financial market outlook: 2017 Review and 2018 Outlook held at the FICAN Centre, Lagos.

    Eboh said the intervention funds were for nine months, which started April and ended December, last year. He also said the figure was an improvement compared to the $9.6 billion spent in same period of 2016.

    He also said the Investors’ & Exporters’ Forex Window had recorded over $27.8 billion in turnover and brought about transparency and stability in the market.

    He added that current account stabilised in surplus position, expanding to $9.6 billion annualised in nine months, from $2.7 billion in fiscal year 2016.

    He said the foreign investors will be happy to see the interest rate remain at 14 per cent, even as the stability in the market has helped the foreign investors know that the economy is stable. “Foreign portfolio investments provide liquidity and confidence to the market. And keeping the interest rate at 14 per cent will help keep them coming,” he said.

    Speaking on loans to small and medium enterprises, he said delay and outright non-payment of borrowed funds by SMEs is making it difficult for key lenders within the sector, including Bank of Industry to grant further credits to operators.

    He said it is only when loans are repaid on timely basis that the lender has more capacity to lend to other borrowers.

    He said that inflation rate is still higher than Monetary Policy Rate, which makes it easier for investors to go for fixed income securities like Treasury Bills, Bonds and other instruments that help investors create lasting wealth.

    Ebo said the year 2018 remains an opportunity for investors to make money in both equities and fixed income securities, but advised investors to time their entry and exit accurately in order not to lose their funds.

    He said, there is strong correlation between oil price rise and equities performance, adding that investors always look out for profitable businesses and those with great prospects.

    On stability in the forex market, he said rate convergence has already been achieved by the CBN, adding that with low exchange rate margin, speculators have virtually abandoned the market.

    “Foreign investors also consider the margin between both official and parallel market level. When there is little or no volatility in the market, that gives foreign investors’ confidence. The naira gained 35 per cent year-on-year against the dollar to close at N363 to dollar by year-end in the parallel market,” he said.

    He said the Economic Recovery and Growth Plan (ERGP) of the Federal Government was built on five pillars, stabilise the microeconomic environment, achieve agriculture and food security, improve transportation infrastructure, ensure energy sufficiency in power and petroleum products and drive industrialisation, focusing on small and medium enterprises.

  • LCCI urges executive, legislature to resolve issues in national interest

    LCCI urges executive, legislature to resolve issues in national interest

    The Lagos Chamber of Commerce and Industry ( LCCI ) has appealed to the executive and legislative arms of government to resolve their issues in the national interest and for economic growth.

    Mr Muda Yusuf, its Director-General, made the appeal in an interview with the Reporter in Lagos on Wednesday.

    He said that the two arms of government should ensure that their differences did not affect the economy and welfare of citizens.

    Yusuf made the suggestion while reacting to the postponement of the Monetary Policy Committee (MPC) meeting scheduled for Jan. 22 and Jan. 23 due to inability to form the statutory quorum.

    The vacuum in membership of the MPC was due to retirement of some members and some who had completed their terms.

    The Second Schedule of the CBN Act (Section 12(5) and 540) stipulated that the quorum should be formed with six members in attendance, two of whom should be the governor and a deputy governor or two deputy governors.

    Read Also: 2018 Budget: LCCI lauds 30.8% capital allocation

    Reporter recalls that President Muhammadu Buhari, in October 2017, nominated Mrs Aisha Ahmad as Deputy Governor of the Central Bank of Nigeria.

    He also sought the confirmation of Messrs Adeola Adenikinju, Aliyu Sanusi, Robert Asogwa and Mrs Asheikh Maidugu as members of the CBN Monetary Policy Committee.

    Months after the nomination, the Senate is yet to confirm the nominees.

    Yusuf said that whatever reasons the National Assembly might have to stall confirmation of the nominees should be set aside in consideration of the economy.

    The LCCI boss said that socio-economic growth should be the priority of government, adding that the country should avoid issues that might heighten uncertainties about the economy.

    “The outcome of the MPC meeting always gives direction about the thinking of the monetary authority and investors are usually on the lookout for these decisions,” he said.

    Yusuf said that this was paramount to maintain investors’ confidence, attract investments and create jobs.

    NAN

  • CBN injects $210m into forex market

    CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) has boosted the inter-bank Foreign Exchange Market with f $210 million injection. The fund will be used to meet customers’ foorex demands in various segments of the market.

    The CBN offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million, according to figures obtained from the bank yesterday.

    The figures also indicated that customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were allocated the sum of $55 million.

    The bank’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, reiterated the lender’s determination to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

    According to him, the CBN will continue to manage the forex with a view to reducing the country’s import bills and minimize depletion of foreign reserves.

    The CBN had in the past week, intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $210 million, to cater for requests in the airlines, agricultural, petroleum products and raw materials and machinery sectors.

    Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N361/$1 in the Bureaux De Change (BDC) segment of the market on Monday, January 22.

  • CBN injects $210m into forex market

    The Central Bank of Nigeria (CBN) has injected $210 million into the inter-bank foreign exchange (forex) market to meet customers’ requests in various segments of the economy.

    Figures obtained yesterday from the  apex bank showed that it offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million. Customers requiring forex for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

    The bank’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids today.

    Okorafor reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its resolve to sustain liquidity in the market and maintain stability. He said the steps taken so far by the CBN in forex management had yielded many positives, particularly as it had to do with reduction in the country’s import bills and accretion to its foreign reserves.

    It will be recalled that the CBN last Friday,  intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $262.5 million, to cater for requests in the agricultural, airlines, petroleum products, raw materials and machinery sectors.

    Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N360/$1 in the BDC segment of the market as at yesterday.

  • CBN inaugurates NFIS in Anambra

    CBN inaugurates NFIS in Anambra

    The Central Bank of Nigeria ( CBN ) on Friday inaugurated the Financial Inclusion State Steering Committee for implementation of the National Financial Inclusion Strategy ( NFIS ) in Anambra.

    The committee was inaugurated at the Awka Branch office of the CBN on Friday.

    At the inauguration, Prof. Solomon Chukwulobelu, the Secretary to the Anambra government urged members of the committee to adopt policies and programmes that would ensure that the less privileged had access to financial services.

    Chukwulobelu was represented by the Anambra State Commissioner for Economic Planning, Budget and Development Partners, Mr Mark Okoye.

    He described the committee as a veritable platform to enable stakeholders to contribute ideas toward addressing issues about effective implementation of NFIS.

    He said that if well implemented, the economically active population in Anambra would have greater access to finance for their businesses.

    Chukwulobelu expressed hope that the committee would fashion out strategies to help to achieve the 2018 target of achieving 328,000 new savings customers and 299,000 new credit customers.

    Mr Chuks Sokari, the Branch Controller of CBN, Awka branch recalled that NFIS was launched in October 2012 with the aim of reducing the percentage of adult Nigerians with low access to financial services from 46.3 per cent in 2010 to 20 per cent in 2020.

    Read also: CBN orders banks to open 7.6m new savings accounts

    Sokari said that the broader aim was to ensure that more than 80 per cent of economically active Nigerian population had access to and make use of financial services with at least 70 per cent of that number in the formal sector.

    He also highlighted initiatives that the apex bank had undertaken to improve the situation in most vulnerable zones of the country.

    Sokari urged the FISC State Steering Committee headed by him to come up with action plans that would accelerate financial inclusion drive at the local level.

    Membership of the committee was drawn from relevant ministries, including education, information, women affairs, financial service providers, and small and medium entrepreneurs.

    The inaugural meeting also featured interactive session and paper presentations.

    Members of the committee were further grouped into two committees including the Financial Inclusion Outreach Working Group and Financial Inclusion Vulnerable Working Group, chaired by representatives of the Ministry of Information.

    NAN

  • CBN orders banks to open 7.6m new savings accounts

    CBN orders banks to open 7.6m new savings accounts

    …starts review of financial Inclusion strategy

     

    The Central Bank of Nigeria ( CBN ) has ordered all Deposit Money Banks (DMBs) and Microfinance banks to open 7,608,180 new savings accounts to meet its financial Inclusion target.

    Financial institutions in all the states and the Federal Capital Territory (FCT) were given different targets. Lagos banks have the highest target of 2,293,080 while banks in Abuja are to attract 153,000 savings account customers.

    CBN Abuja Branch Controller, Mrs Elizabeth O. Agu made this disclosure yesterday in Abuja at the inauguration of Financial Inclusion States’ steering committee (FISSCO).

    Agu stated that the apex bank has ordered all Deposit Money Banks (DMB) and Microfinance in the the Federal Capital Territory (FCT) to attract a minimum of 1500 and 2500 new savings customers respectively in 2018.

    She also confirmed that the apex bank has commenced the review of the strategy document for achieving required levels of financial inclusion in the country.

    Come 2020, the CBN is targeting 20% adult exclusion from financial services.

    The review is expected to throw up major challenges and corrective options to be adopted to put Nigeria back on track of meeting the 20% exclusion target by 2020.

    According to her, “as we speak, the bank is working on initiatives that are targeted at North East, North West and North Central zones of the country where exclusion rates are still very high. We intend to hold stakeholders’ workshops in those parts of the country to drill down on strategic measures that will give us quick results.”

    She added that “the bank is also working on developing non-interest financial products for the region. We are conceptualizing ways and means to reach out to women whose culture and religion require specialized products and channels”.

    The CBN Abuja Controller informed members of Abuja FISSCO steering committee which comprise top officers of Deposit Money Banks branches in Abuja metropolis and representatives of key agencies that, CBN has evolved appropriate governance arrangements for the implementation of Financial Inclusion Strategy at all levels.

    “We are therefore, inaugurating the Financial inclusion strategy State steering committee to be chaired by the CBN Branch Controller while the head of development finance office will serve as technical officer in the State/ committee” she said.

    In his address, Permanent Secretary, Federal Capital Territory Administration (FCTA) represented by Mr. Abubakar Sanni Pai urged the CBN to create a common platform for stakeholders to contribute their views to achieve the National Financial Inclusion Strategy (NFIS).

    Pai noted that “one of the ways to assist the masses to attain economic independence especially those at the bottom of the pyramid is to provide them adequate access to financial services in a convenient and affordable manner.”

    NFIS was launched on the 23rd of October, 2012 with the overall target of reducing the percentage of adult Nigerians excluded from access to financial service from 46.3% in 2010 to 20% in 2020 and make use of financial services with at least 70% of the number in the formal sector.

  • BDCs lobby CBN to slash forex buying rate to N350/$

    BDCs lobby CBN to slash forex buying rate to N350/$

    Bureau De Change (BDC) operators are urging the Central Bank of Nigeria (CBN) to reduce foreign exchange (forex) buying rate from N360 to N350 to the dollar— in the interest of the economy and operators.

    Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe, who spoke yesterday after an emergency meeting with 3,500 CBN-licensed BDCs in Lagos, said the operators’ businesses may go underground unless the CBN listens to their demands.

    He said small transaction margins charged by BDCs are not sufficient to keep their operations going, with many operators running at a loss and unable to pay their workers’ salaries.

    Gwadabe, who was represented by ABCON National Treasurer, Gbadamosi Moh-Murtala, said the CBN has also been informed on the need to change the commission on transaction of BDCs from N2 to 3.5 per cent of the transaction volume for the sustainability of their businesses.

    “We are happy that the exchange rate is appreciating. The major problem now is how BDCs can operate without making losses. Many of the BDCs are buying at higher prices and selling lower prices. They sometimes sell below CBN’s rate which is N360 to dollar. That is not event enough to cover overhead left alone profit,” Gwadabe said.

    According to the ABCON boss, the CBN should at the meantime, peg the BDCs buying rate at N358 to dollar to enable them sell at N360 to dollar while it works on longer-term plan of cutting the rate to N350 to dollar and allow them sell at N355 to dollar.

    He said the challenges faced by BDCs are enormous, as many forex users now prefer to buy their Business Travel Allowances (BTA), Personal Travel Allowances (PTAs), medical bills and school fees payment abroad through the banks instead of BDCs following the rate disparity that does not favour the BDCs. He added that  the CBN could also, sell dollar to BDCs at same rate it sells to banks, since both sell to the same customers.

    He added: “Even the CBN knows that we are making losses. We are currently out of the market but we have decided not to boycott the market despite the challenges we face. It is better we dialogue. Our body language is to support government policy but while we are doing that, we want the CBN to lower our buying rate”.

    Gwadabe said the BDCs helped the government reduce unemployment rate, adding that any policy that pushes the BDCs out of the market will worsen the unemployment rate in the economy.

    He said the ABCON is also working closely with the CBN to ensure that more sources of forex to the BDCs are explored, especially in getting them to buy export proceeds.

    He however, urged operators to be transparent in their operations and file their returns accurately as such would encourage the CBN to support their operations.

    He also said the group is collaborating with the Nigerian Interbank Settlement System and the CBN to automate BDCs’ processes to enhance transparency. He said the BDCs’ can begin to access dollar from International Money Transfer Operators (IMTOs) directly if the right technology exists. “The automation allows NIBSS to confirm international passport and Bank Verification Number (BVN) authenticity of forex buyers. At ABCON, security of transactions remain our priority,” he said.

    He also said the CBN will be urged to allow operators up till March 31, to pay N250,000 annual licence renewal fee instead of the January 31 deadline set by the regulator.

    Gwadabe said the CBN and Travelex would need to take steps to ensure that the weekly forex disbursements are done on time for the security of their members. “We have told our members to reject any dollar disbursement after 3pm on the selling day. Once it is 3pm, we will abandon the money for Travelex because the security of our members is paramount,” he said.

    The ABCON boss said the group will continue to align with the CBN’s vision of providing a stable framework for the economic development of Nigeria through effective, efficient, and transparent implementation of monetary and exchange rate policy, and management of the financial sector.

  • CBN Disowns Fake Emefiele Twitter Handles

    The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has dessociated himself from the existence of several twitter handles purportedly owned by him.

    A statement from CBN’s Acting Director, Corporate Communication, Isaac Okorafor, said: “We wish to inform members of the public, particularly members of the social media community, that Emefiele currently has no twitter handle. We wish to state categorically therefore, that the twitter handles bearing the name and photographs of  Emefiele are fake and targeted at misleading unsuspecting members of the public.

    He advised members of the social media community and the general public to be wary of the fake accounts and discountenance whatever message that is conveyed therein.