The Nation Newspaper

Tag: Central Bank of Nigeria (CBN)

  • New CBN deputy govs, MPC members assume office

    Mrs Aisha Ahmad, and Mr Edward Adamu have formally assumed office as Deputy Governors of the Central Bank of Nigeria ( CBN ), following the confirmation of their appointments on March 22 by the Senate.

    According to a statement signed by the bank’s acting Director, Corporate Communications, Mr Isaac Okoroafor on Wednesday in Abuja,  Prof  Adeola  Adenikinju, Dr Robert Asogwa and Dr Aliyu Sanusi also commenced their tenure as Members of the Monetary Policy Committee ( MPC ).

    Okoroafor said CBN Governor, Mr Godwin Emefiele, congratulated them on their respective appointments and subsequent confirmation by the Senate.

    Emefiele expressed gladness that the bank now had a full complement of Deputy Governors to enable it operate optimally as well as the required quorum to enable the MPC hold its statutory meetings for formulating monetary and credit policy.

    He, therefore, charged the Deputy Governors and MPC members to bring their experience to bear in the discharge of their new responsibilities, stressing that much was expected of them.

    According to Okoroafor, the two Deputy Governors and the three new MPC members later took their Oaths of Office, administered by the acting Director, Corporate Secretariat at the CBN, Mrs Alice Karau.

    Thereafter, the Director, Monetary Policy Department, Mr Moses Tule, read out the Charter of the MPC to new members and then they retired into their first MPC retreat.

    The retreat is in preparation for the first MPC meeting for 2018 scheduled to hold on Tuesday, April 3 and Wednesday, April 4.

    NAN

  • Banks borrowed N27.46tr from CBN in six months – Report

    Total loans secured by commercial banks from the Central Bank of Nigeria CBN, stood at N27.46 trillion in six months, the CBN’s half year report on financial sector performances released on Tuesday has shown.

    The 2017 half-year Financial Markets Activity Report, said loans came in the form of Standing Lending Facility (SLF), including the Intra-day Lending Facilities (ILF). The standing facilities were accessed by the banks to enable them either meet their short-term liquidity needs or place their surpluses. The rates for SDF and SLF remained at nine and 16 per cent, respectively.

    The report said the SLF was utilised by the banks in order to enable them square up their positions after inter-bank market trading hours. It said of the total SLF granted in the review period, N20.62 trillion was conversion from unsettled ILF.

    The SLF is an overnight CBN credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value. 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.

    According to the report, signed by CBN Director, Financial Markets Department, Alvan Ikoku, said the banks continued to access the CBN’s Standing Facilities window to square up their positions either by borrowing from the SLF window or depositing excess reserves at the standing deposit facility (SDF) window of the CBN at the end of each business day.

    The report said the SLF was utilised by the banks in order to enable them square up their positions after inter-bank market trading hours. It said the patronage of the facility reflected the liquidity position during the first half of the year, as requests were at its lowest on January 2, 2017 with N83.61 billion and at its highest on April 18, 2017 with N478.54 billion.

    “In view of the 122 transaction days within the period, average daily request amounted to N225.14 billion. Consequently, the cumulative interest received on the facilities was N21.13 billion at 16.00 per cent. In comparison with the corresponding period of the previous year, total SLF transactions amounted to N5.07 trillion, out of which N4.87 trillion was conversion from ILF.

    It said the average daily request stood at N59.76 billion, while the cumulative interest received on the facilities was N2.92 billion at the applicable rates of 13.00 and 14.00 per cent. The higher level of transactions over the corresponding period in 2016 was occasioned by the tight monetary operations in 2017.

    The CBN report said patronage of the SDF reflected the liquidity unease in the system as less funds were deposited compared with the corresponding period of the preceding year.

    “The reduced patronage was due to tighter monetary operations through increased Open Market Operation (OMO) auctions. The foreign exchange interventions, in addition, moderated the cash balances in the banking system. The restriction of N7.50 billion maximum remunerable SDF per bank remained applicable.

    The total request for SDF in the review period was N5.1 trillion, indicating a daily average volume of N45.54 billion as against a total SDF of N12.69 trillion and daily average of N102.42 billion in the corresponding period of 2016.

    Further analysis of the transactions indicated that the highest amount of SDF was N121.50 billion on February 2, while the lowest was N0.30 billion on March 20.

    Consequently, the interest paid on SDF amounted to N1.99 billion at the rate of 9.00 per cent in the first half of 2017, as against N2.84 billion at 4.00 per cent from January 1 to March 21 and 7.00 per cent from March 22 to June 30, 2016.

    It said the total value of transactions in the funds market stood at N864.93 billion in the first half of 2017, as against N513.11 billion in the corresponding period of 2016. The high level of activity in the review period was attributable to liquidity squeeze occasioned by tight monetary operations.

    Further analysis of the transactions indicated that open-buy-back (OBB) accounted for 89.42 per cent at N773.42 billion, while the unsecured recorded 10.58 per cent at N91.51 billion.

    In the preceding year, OBB accounted for less at N203.54 billion or 39.67 per cent compared to the unsecured segment which recorded N309.57 billion or 60.33 per cent. The shift in patronage in favour of OBB in the review period was attributable largely to greater risk aversion by market participants.

     

  • Katsina trains 60 journalists on poultry, fishing, bee-keeping

    Gov. Aminu Masari of Katsina State has emphasised the need for journalists to embrace vocational training to enable them have a sustainable livelihood after retirement.

    Masari said this known on Tuesday in Katsina during the opening ceremony of training of 60 members of the state council of the Nigeria Union of Journalists ( NUJ ) on poultry, fisheries and bee-keeping.

    The training was organised under the Katsina State Economic Empowerment Directorate ( KASEED ).

    Masari, represented by his Special Adviser on Economic Empowerment, Alhaji Abdukkadir Mamman-Nasir said the trainees were expected to educate the public on the management of poultry, fisheries and beekeeping after the training.

    The governor said the participants would also be taught on entrepreneurship course after the training.

    According to him, after the course, there will be a test, adding that those who score 40 per cent and above will be given loans by the state government to start business as entrepreneurs.

    He said this was why the state government involved the Central Bank of Nigeria ( CBN ) and Bank of Agriculture ( BOA ) in the programme.

    Also speaking, the Director, Business Development in KASEED, Alhaji Abdurrahman Abdu-Zango, said journalists were selected for the programme because they were agents and medium of awareness creation in the society.

    In a remark, the Chairman of NUJ in the state, Alhaji Buhari Mamman, thanked the state government for organising the training.

    Mamman, who was represented by the Secretary of the council, Alhaji Hassan Dan-Ali, promised that participants would put what they have learnt during the training into practice.

    NAN

  • NDIC cautions Nigerians against transactions in digital currencies

    The Nigeria Deposit Insurance Corporation ( NDIC ) says transactions in digital currencies are not authorised by the Central Bank of Nigeria ( CBN ), cautioning Nigerias against transacting business in bitcoin and other crypto currencies.

    The Manager, Research Department, NDIC, Mr Adikwu Igoche, gave the warning in an interview with the our reporter on Friday at the ongoing 29th Enugu International Trade Fair.

    Bitcoin and other crypto currencies are forms of digital currencies which only exist in some websites and not backed by the country’s law.

    Igoche said that crypto currencies were not deposits or financial instruments authorised by the CBN, adding: “therefore, they are no insured by the corporation.”

    “Again these forms of currencies are not backed by any physical commodity, such as gold or other precious stones.

    “They do not belong to the category of currencies or coins issued by the CBN or the central bank of any other country,” he said.

    According to him, the NDIC will not relent in sensitising Nigerians to financial, operational, legal and security risks they face by patronising ponzi schemes and digital currencies.

    Igoche also urged Nigerians to patronise only banking institutions that displayed the NDIC sticker with the inscription, `insured by NDIC,” in their banking halls or entrances.

    He said a help desk had been created at the NDIC’s stand at the fair where depositors of closed banks could ascertain where and how to access their deposits and process their claims.

    “The corporation also operates a robust 24 hours national help desk with a toll-free telephone line number 080063424357.

    “The desk is for further information and enquires on depositors’ claim settlement and complaints or sharp practices by their banks.

    “The general public can also access our website on www.ndic.gov.ng,’’ he noted.

    The fair is being organised by the Enugu Chamber of Commerce, Industry, Mines and Agriculture ( ECCIMA ) at the fair complex, beside Golf Estate, GRA, Enugu.

    The fair, which has entered its 8th day, has its theme as “Engendering the Competiveness of Nigerian Products in the Global Market.”

    NAN

  • Benin Industrial Park: NEXIM Bank offers Edo N553b funding window

    Governor Godwin Obaseki’s effort to industrialise Edo state has gotten a new boost as a Federal Government banking institution, the Nigerian Export-Import (NEXIM) Bank has thrown its weight behind the project with three funding windows running into N553 billion for the park’s development and building of local capacity to meet export standards.

    The management of NEXIM bank led by its Executive Director, Business Development, Hon. Stella Okotete, disclosed this during a courtesy visit to the governor at the Government House, in Benin City, the Edo State capital

    The funding opportunities are a N500billion Export Stimulation Fund managed by NEXIM Bank in partnership with the Central Bank of Nigeria (CBN) and a N50 billion State’s Export Development Fund, which the state government can access to encourage entrepreneurs to improve the quality of goods to meet international standard.

    There is also a N3billion Export Development Fund available for capacity development for entrepreneurs in the non-oil sector.

    Obaseki said his administration is keen on developing human capital to improve the state’s comparative advantage to produce economic goods to meet international standards.

    “Nigeria will remain an import dependent country if effort is not made to improve the quality of goods produced to meet global standards. Effort must be made to produce goods that are competitive.”

    He assured, “This administration will focus on reducing the cost of production and exportation by improving power supply and ease the means of transportation of goods and services.

    “If goods are cheaper abroad, it will be better to import than export. There are lot of incentives offered by the Federal Government to support exportation. We will go beyond the rhetoric and implement strategies that will encourage export of quality products in a competitive market.

    “The Benin Industrial park and the Gelegele Sea Port, when completed, will guarantee lower cost for goods to be exported through water transportation which is cost effective.”

    Executive Director, Business Development, NEXIM Bank, Hon. Stella Okotete, said the NEXIM Bank team is in the state to showcase funding opportunities available through the bank to encourage exportation of non-crude oil products.

    Okotete said, “NEXIM Bank is ready to partner with the state government to achieve the vision of developing the Benin Industrial Park project, improve human capacity and provide financial advisory services to entrepreneurs.”

    “NEXIM Bank has N500 billion Export Stimulation Fund in partnership with the Central Bank of Nigeria (CBN) and the N50 billion State’s Export Development Fund which the state government can access to encourage entrepreneurs to improve the quality of their goods to meet international standard,” she added.

    Noting that there is also opportunity to build capacities of entreprenuers in the state, she said, “There is a N3billion Export Development Fund which is available for the development of capacity for the training of entrepreneurs in the non-oil sector to enable them improve the quality of their products to meet international standard. This fund will be given to women and youth cooperatives to enable them improve the export value chain.”

    Read Also: NEXIM bank set to inject N500b export development fund to rescue indigenous firms

     

     

     

  • No date yet for budget passage – Senate

    The Senate on Tuesday said there was no date yet for the passage of the 2018 Budget.

    Senate’s spokesperson, Sen. Sa’abi Abdullahi, said this while addressing newsmen in Abuja.

    He said: “The budget process is on and I can’t tell you this is the specific date it is going to end.

    “We are working very hard on it and we want to assure Nigerians that at the end of the day, we will have a budget that will serve the purpose of Nigerians.”

    On the upper chamber’s resolution to lift embargo on confirmation of presidential nominees, the lawmaker said “there was an existing impasse between the Executive and the Legislature with respect to confirmation hearing of appointees of the Executive.

    “We had a resolution that since the executive is claiming we don’t have the powers to make those confirmations we are not going to consider the nominees they are forwarding to us. This happened since last year”.

    The Senate, after a Point of Order by Sen. Rafiu Ibrahim (APC-Kwara), lifted the embargo.

    According to Abdullahi, the Senate made the resolution “not that they have any iron to grind with anybody.

    “But because we believe we must defend the sanctity of democracy and ensure the institutions of democracy, for which the Senate is the apex, must be respected and we believe in doing so, it is in the overall interest of the people”.

    He further explained that the upper chamber resolved that it would consider the confirmation of members of the Monetary Policy Committee (MPC).

    “We will also consider the nomination of the two deputy governors of Central Bank of Nigeria ( CBN ) who are also members of the MPC so that the Nigerian economy will receive the necessary technical input to ensure that we sustain the growth of our economy.

    “And to also ensure we support the executive in walking the economy out of recession.

    “We are definitely going to do the confirmation to enable those confirmed to attend the next MPC meeting,” Abdullahi said.

    The MPC meeting is scheduled to hold on March 19 and 20.

    NAN

  • CBN promises to increase access to credit by women

    CBN promises to increase access to credit by women

    Central Bank of Nigeria (CBN) has promised to improve women’s access to formal financial services especially credit through its various intervention programmes.

    This promise was made by the Director, Development Finance Department of the CBN, Dr Mudashiru Olaitan Wednesday in Abuja at the CBN 2018 International Women’s Day workshop tagged “Women Inspiring Change”.

    Represented by Mrs. Hadiza Maina, a senior Development Finance Officer at the CBN, Olaitan said the apex bank was favourably disposed to increasing women’s access to finance “to enable them play their expected role in economic development.”

    By promoting gender equality in access to finance, 50 per cent of the population would be empowered to contribute effectively to economic development Olaitan noted.

    To ensure greater access to finance by woman, the CBN he said has allocated resources through different programmes devoted to women alone.

    For instance, he said that under the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF), 60% of the Fund was allocated to women based enterprises.

    According to him, “access to finance is often cited as one of the major factors impeding the growth of women-owned businesses in developing countries. In view of the peculiar challenges faced by women in accessing financial services in Nigeria, the CBN has established the N220 million MSMEDF, Agric credit guarantees scheme, Anchor Borrowers Programme and financial inclusion programmes.”

    These financial interventions he explained “are innovative ways of improving women’s access to finance at mainly single digit interest rate, which will improve their potentials for job creation and inclusive growth on our country.”

    Earlier, the Special Advicer to the CBN Governor on Sustainable Banking, Dr Aisha Mahmood, said women were key to the economic development of Nigeria.

    According to her, “it has been proven that women have immense potentials as engines of growth and economic development. Consequently, empowering them becomes beneficial to the society as large,” she said.

    During the technical session, it was revealed that a 2016 report by Elfina, a U.K. Government project on Access to Financial Services in Nigeria, showed that 21.4 million females, that is 42.7 per cent of the total female population in Nigeria were financially excluded.

    The report showed that financial access was skewed towards the male population, which had only 35.8 per cent of its population financially excluded.

    Read Also: CBN begins disbursement of small naira notes to traders

  • Naira remains stable against Dollar, Euro

    Naira remains stable against Dollar, Euro

    The Naira on Monday remained stable as it traded at N362 to the dollar at the parallel market, same amount it was sold last Friday.

    The Naira also closed against the euro at N481 at same market in Lagos.

    At the Bureau De Change ( BDCs ) window, the Naira also recorded same stability.

    It traded at N362 to the dollar, while the euro was sold at N482 since last week.

    Data from the Financial Market Dealers Quote ( FMDQ ) showed that the indicative exchange rate for the I&E was at N360.15 per dollar.

    The exchange was an appreciation of 0.01 percent from N360.19 per dollar recorded last Friday.

    The Central Bank Of Nigeria ( CBN ) rate closed at N305.95 to the dollar.

    Some of black market operators and BDCs told our reporter that there was no figure for pounds.

    They were skeptical about trading naira for the currency because of the banknote changes by Bank of England.

    The old £10 note is set to go out of circulation on March 1, 2018.

    However, old notes can still be spent ahead of the cut-off date or exchanged at the bank once the point has passed.

    The old paper fivers went out of circulation on May 5, 2017.

    NAN

  • I’m ashamed Nigeria has no data on oil – Yemi-Esan

    I’m ashamed Nigeria has no data on oil – Yemi-Esan

    The Permanent Secretary, Ministry of Petroleum Resources, Dr. Folasade Yemi-Esan, yesterday expressed concern over the non-availability of data on Nigeria oil sector in the country.

    According to her, Nigerians have to go to the secretariat of the Organization of Petroleum Exporting Countries ( OPEC ) before getting data on Nigerian oil.

    She said: “immediately after the minister’s speech last week, somebody stood up and said we didn’t have data source on Nigeria. And I was actually ashamed of myself and I think as we provide data for OPEC, we should address the question of churning credible data to be consumed in-country. It is a pity when students are looking for data we have to go to OPEC to get data about Nigeria.”

    She spoke while declaring the OPEC data management training workshop open at the Petroleum Technology Development Fund ( PTDF ) in Abuja.

    Yemi-Esan tasked the stakeholders in the workshop to work with the ministry to ensure that there is a generation and provision credible data that could help in planning and research purposes in the country. 

    She noted that the ministry works with the Nigerian Liquified Natural Gas, the Central Bank of Nigeria, Debt Management Office, National Population Commission, Energy Commission of Nigeria, Nigerian Electricity Regulatory Commission and Indorama Nig Ltd in order to generate its data.

    The Perm Sec, who noted that OPEC had commended the ministry on the last questionnaire it filled on data generation, stressed that “the format has changed slightly and we want to be sure that we are actually doing better. That is why we have this training.”

    According to her, the ministry was expecting participants from Equatorial Guinea, and Gabon but they cancelled their trip at the last minute. 

    Meanwhile, the Executive Secretary of the PTDF which hosted the event, Dr. Aliyu Gusau, noted that presently the organization relies heavily on member countries for accurate and timely data to effectively carry out its mandate.

    He added that for the Fund, “this workshop offers an opportunity for the expression of our strategic objectives to engage more effectively key players of the oil and gas industry by making valuable contributions that will further enhance capacity building of personnel and operators in the industry.” 

    Speaking, the Head, OPEC Data Management, Dr. Adedapo Odulaja all the activities of the organization is based on the data from member countries. 

    He stressed that without data transparency the oil industry cannot thrive. He noted that there are legal and technical aspects of the data, and without capacity building on them there will be no achievements in the industry. 

    He pointed out that the essence of the workshop was as a result of the need to make other agencies in the world compatible with the change in the questionnaire that was used for 20 years. 

    He submitted  that “we will have to understand the connection between the old and the new one and that is why we are here today.”

  • EFCC recovers N102m for Bank of Agriculture

    EFCC recovers N102m for Bank of Agriculture

    The Economic and Financial Crimes Commission ( EFCC ), Kaduna zonal office, has recovered N102 million diverted from the Bank of Agriculture ( BOA ) in Kebbi.

    A statement by the spokesman of the commission, Mr Wilson Uwujaren, said the funds were diverted by beneficiaries of the Central Bank of Nigeria ( CBN ) Anchor Borrowers Programme, disbursed by BOA.

    Uwujaren said so far a total of N297 million had been recovered by the commission in favour of BOA in Kaduna and Kebbi states.

    The Head of Operations of the Kaduna office, Ibrahim Bappa, formally presented a bank draft for the N102 million to one Mohammed Babangida, who represented the BOA Managing Director.

    Bappa assured the bank that the EFCC would continue to assist it in the discharge of its statutory duties.

    He, however, decried the worrisome trend in which beneficiaries of the scheme diverted the funds, and urged the BOA to ensure proper orientation before loans were disbursed.

    Responding, Babangida lauded the efforts of the EFCC in the recovery, saying the action had restored confidence in the bank.

    The EFCC spokesman said investigations into the matter began in 2017 following a complaint.

    According to him, the complaint bordered on the diversion of part of the N12 billion disbursed to some rice farmers through BOA in which Kebbi acted as uptaker for the purchase of paddy rice.

    “In the course of investigations, it was revealed that some rice mills in Kebbi collected bags of rice but failed to remit the total agreed sum.

    “So far, the Kaduna zonal office of the EFCC has been able recover N297 million in favour of the Anchor Borrowers Programme in Kaduna and Kebbi States,” he said.

    NAN