The Nation Newspaper

Tag: Central Bank of Nigeria (CBN)

  • 22% women bankers in banks’boards, says CAFEi report

    Twenty two per cent of women bankers are in banks’ boards, against 40 per cent target set by the Central Bank of Nigeria (CBN), THE Consumer Awareness and Financial Enlightenment Initiative (CAFEi) has said.

    In a statement, CAFEi President, Mrs. ‘Debola Osibogun, said there has been growing consensus on the positive correlation between female participation in economic activities and increased growth and efficient management of resources across the world.

    “A recent study by McKinsey Global Institute found that $12 trillion could be added to global Gross Domestic Product (GDP) by 2025 if female participation in the public, private and social sectors of the economy increased. Despite the increasing participation of women in politics across the world, albeit at a scale still far behind the male counterparts, these achievements of the few who have managed to break the glass ceiling has been likened to a ‘cartel’, where only the powerful are admitted whilst the rest are shut-out from making inroad into political relevance,” she said.

    The narrative rings true for Nigeria where an average of only 6.7 per cent of women are represented in politics either through elected or appointed positions; 22 per cent of bank boards are female as opposed to a CBN target of 40 per cent, and according to the World Bank, just 17.52 per cent of 15-64 year-old women were engaged in some sort of employment in 2017. A 2013 survey by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) showed that 23 per cent of small or medium sized enterprises (SMEs) were owned by women and although this increased to 43 per cent for micro enterprises (MSMEs), they are not captured as part of the economic activity as they relate to the informal sector.

    Osibogun said several steps have been taken globally and in the local environment to drive broad-based inclusive economic growth and close gender gap largely as a mechanism for poverty reduction and in the pursuit of shared prosperity. Development institutions such as the Bank of Agriculture, Bank of Industry have rolled out series of intervention funds targeted at enhancing access to finance for women as part of the growing effort to drive financial inclusion for all. Similarly, several regulations, even though gender-neutral, have been targeted at eliminating barriers to participation in several sectors which have traditionally impaired ability of women to compete.

    “One of such is the recent regulation passed by the President Muhammadu Buhari government – The Federal Competition and Consumer Protection Act (FCCP), which came into effect on February 6, 2019. The Act repeals the Consumer Protection Act Chapter 25, Laws of the Federation Nigeria 2014 and Sections 118-128 of the Investment and Securities Act which regulated Mergers and Acquisitions (M&As) via the Securities and Exchange Commission (SEC).”

     

  • CBN: MfBs in 774 local councils coming

    The Central Bank of Nigeria (CBN) yesterday said it plans to establish Microfinance Bank (MfBs)  in all the 774 local government areas of the country.

    Its Governor, Mr. Godwin Emefiele, disclosed yesterday at Gwagwalada, Abuja while on a facility tour of Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) MfB, an agribusiness initiative which provides risk for framers.

    He said the capital base of the new NIRSAL MfB will  initially be N5 billion, stressing that the new initiative which is a collaboration among the Bankers Committe, NIRSAL and NIPOST will see to the establishment of seven MfBs in the six geo-political zones and the Federal Capital Territory (FCT).

    Thereafter, he said, the number will be scaled up to 50 MfBs which are expected to become operational in the second phase of the launch of NIRSAL MfB.

    The first seven branches to be opened will be located in Ibadan, Port Harcourt, Bauchi, Kaduna, Enugu and Lokoja in addition to the one in Gwagwalada Abuja.

    Emefiele said: “We are just inspecting one out of the first seven and we are scaling up to the next 50 in the next phase. We believe that before the end of this year, we would have moved substantially in making sure that they are set up and be able to provide finance to small businesses.  This is a collaboration  between NIRSAL, Bankers Committee and NIPOST and I want to say that we really need to set up MfB that will reach out to the unbanked.”

    The CBN chief lamented the lack of access to cheap finance by small businesses but noted that with the presence of an MfB branch in each local government across the country, the problem would be tackled.

    “The biggest problem small businesses always have is access to credit; and I am happy that with the establishment of this MfB which would be in at least one local government and we are talking about the 774 locations in all the country, we would be able to have a financial institution that will help deepen financial inclusion to make it easy for people to access credit particularly the small and unbanked people because we have always said that these are the very weak,” he said.

    The creation of NIRSAL MfBs across the country, he said “is to improve access to credit and the technology that would be used will be a FinTech.

  • No more Forex for textiles

    Central Bank of Nigeria (CBN) Governor Godwin Emefiele yesterday announced the restriction of foreign exchange to importers of textiles and clothing materials.

    The move, said the CBN chief, is to revive the moribund textile and clothing industry.

    Besides, it will save the country the more than $4 billion being spent annually on the importation of textiles and ready-made clothing materials.

    Speaking at the at the Textile Industry Stakeholders’ Meeting in Abuja yesterday, Emefiele said that the apex bank had decided to support the revival of the textile sector.

    “These steps,” he said, “include, financial support to textile manufacturers with the provision of funds at single digits rate, to refit, retool and upgrade their factories in order to produce high quality textile materials for the local and export market.

    “Effective immediately, the CBN hereby places the access to FX for all forms of textile materials on the FX restriction list. Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian Foreign exchange market.

    “In addition, the CBN shall adopt a range of other strategies that will make it difficult for recalcitrant smugglers to operate banking business in Nigeria. The details of those strategies will be unfolded in due course.

    “The CBN shall, initially support the importation of cotton lint for use in textile factories, with a caveat that such importers shall begin sourcing all their cotton needs locally beginning from year 2020.”

    As part of its Anchor Borrowers Programme (ABP),  Emefiele said the CBN will support local growers of cotton to enable them meet the needs of the textile industries in Nigeria.

    The CBN chief explained: “To this end, the CBN shall also support efforts to source high-yield cotton seedlings so as to ensure the yields from our cotton farmers meet global benchmarks.

    “As regards the provision of stable electricity, the CBN has also offered to support the creation of textile production centers in certain designated areas in Nigeria where access to electricity shall be guaranteed.”

    Emefiele noted that in 2016, the CBN began discussions with the Kano and Kaduna state governments to establish textile industrial areas in a bid to guarantee stable electricity in those industrial areas.

    “We would intensify efforts with these states and others that may show keen interest to see to the quick actualisation of such programmes,” Emefiele said.

    On the FX restrictions, specifically which will take effect from today (yesterday), Emefiele insisted that “banks or FX authorised dealers are prohibited from granting or selling Forex to anybody who wants to import textiles, clothing, textile materials whether through valid and non-valid, I would just advice that there is no need for anybody to talk about whether it is valid or non-valid format we need to close it.

    “Once we close it, it will make it difficult for them to import those garments into Nigeria so that all those garments that are sitting in the factories, the people will be forced to go and buy them whether the price is right or not they will be forced to buy them and the fact that they are forced to buy, they create opportunities for more people to go into that business and over time the price will stabilise that is the idea.

    “I felt that the cotton association talked about time from planting to harvesting cotton and whether it will be in the kind of quantity that you may need and the rest so that is why we are saying for now subject to speaking to these stakeholders behind closed doors, we may say ‘you can import your cotton that is needed by the industry to gin and then convert into their textiles on the condition that by 2020 this will stop in which case our farmers would have gotten into the rhythm to produce the cotton that we need for our textile production.”

    These measures, the CBN governor explained, “will discourage smuggling, resuscitate this critical industry, and support efforts at creating jobs for Nigerians.”

    He said the apex bank took the critical measures to save the textile industry.

    Emefiele said: “Today, Nigeria currently spends above $4 billion annually on imported textiles and ready-made clothing. With a projected population of over 180 million Nigerians, the needs of the domestic market are huge and varied, with immense prospects, not only for job creation, but also for growth of the domestic textile industries.”

    Read also: Oshiomhole gets 48 hours to rescind Okorocha’s suspension

    Highlighting the potential of the local market, Emefiele said: “The need to support provision of uniforms and clothing apparels for school students, military and paramilitary officers as well as workers in the industrial sector.

    “In addition, when we consider the amount spent on outfits for religious and social events such as weddings, naming and funeral ceremonies on a weekly basis, the potential market size is well over $10 billion annually.”

    Emefiele told the stakeholders about the CBN readiness to change the narrative.

    He noted: “I believe that if the CBN, along with other critical stakeholders, are able to address some of the challenges facing this key industry, given the high domestic demand for textiles, we will be able to create jobs for our economy, while increasing production of textiles in Nigeria.

    “Regarding the loans from the Bank of Industry (BoI), we will be engaging the bank, a substantial portion of the loans that they have lent out to you are our own Central Bank interventions so we will be talking to see how these loans can be properly restructured so that you now have a new beginning.”

    Emefiele said he was “optimistic that they will agree for the restructuring given the attempts we are now making to get this industry back to life. Once this is done I believe you shouldn’t have any problems about restructuring the facility.”

    On the textile factories that have stockpiles of inventories flooding their warehouses and storage facilities, he said: “T CBN will make things difficult for those things to come in, don’t worry, in our closed door session we will talk about dealing with smuggling and you know the Central Bank does not carry guns or arms we do not have lorries to be at the border post, but we know what we will do to make it difficult for those smugglers to bring those things into Nigeria.

    “When we make life difficult for them to smuggle this items into the country, what does that do, it opens the market for you so that those who would have gone to buy those smuggled or imported goods will be forced to come to the Nigerian. That is one immediate economic solution that I can see and since the president has signed an executive order that will now compel everybody flow in your direction.”

    The President of the National Cotton Association of Nigeria, Mr. Anibe Achimugu, expressed delight that the CBN’s latest offensive against textile smuggling and desire to revive the textile industry now signals “better days are ahead of us under the ABP for members of Cotton and Textile Group (CTG).

    He expressed the groups’ gratitude for the plans unfolded for the local market by the CBN governor.

    •My tenure ends in June, says Emefiele

    CENTRAL Bank of Nigeria (CBN) Governor Godwin Emefiele said yesterday that his tenure will end in June.

    He was reacting to news that of his purported sack or being forced to leave office in two weeks.

    The CBN boss said: “At least you can see me, I am doing my work, my tenure expires in June and at least, let’s continue.”

    He noted that even if he “leaves at the end of his first tenure, the intervention programmes of the CBN has been on since 1978 and it has moved from one governor to another I am very optimistic that even if another governor comes, no right thinking person will abandon an initiative that is laudable and that is meant to create jobs for the good of our country.”

    The CBN yesterday dismissed claims that Emefiele has been sacked.

    Responding to enquiries from The Nation, the Director, Corporate Communications of the bank, Isaac Okorafor said: “The governor is in his office working.”

    Another official of the bank said: “There is nothing like that, the governor is here, his tenure expires in June.”

    An online medium had reported on Monday that the CBN governor has been sacked by the presidency and given two weeks to clear his table and “handover to an unnamed successor.”

    President of National Cotton Association of Nigeria Mr. Anibe Achimugu at the textile stakeholders meeting in Abuja told the CBN governor that “we give God the glory that you are sitting here today. You have done well; we are praying that even with our own intervention, that you will do a lot more by the grace of God.”

  • Financing agriculture

    •It is time to simplify for better result

    At the annual bankers’ dinner last December, Central Bank of Nigeria (CBN) governor Godwin Emefiele let out an update on the flagship agricultural credit initiative of the Muhammadu Buhari administration, the Anchor Borrowers Scheme (ABS) launched in 2015. Under the scheme, small holder farmers are supplied farm inputs in kind and cash (for farm labour), to boost production of the identified commodities and consequently to stabilise inputs supply to agro-processors at a moderate interest rate of nine percent per annum.

    According to Emefiele, “As at October 2018, a total number of 862,069 farmers cultivating about 835,239 hectares, across 16 different commodities, have so far benefited from the anchor borrowers programme, which has generated over 2.5 million jobs across the country”. Enthused by the success of the scheme, the Monetary Policy Committee, he stated, had in its meeting of November  21, 2018, recommended the inclusion of palm oil, tomatoes, and fisheries to mention a few, in the scheme. In all, N160 billion is said to have been disbursed under the programme till date.

    Last week, The Punch reported that the Commercial Agriculture Credit Scheme (CACS) – another initiative of the apex bank, had as at November 19, 2018, granted a total credit of N596.44billion covering a total of 576 projects, of which 34 are in respect of state governments. When added to the billions annually disbursed to farmers under the Agriculture Credit Guarantee Scheme (ACGS), also promoted by the apex bank – a programme designed to provide guarantees on loans granted by banks to farmers for agricultural production and agro-allied processing – they certainly reflect not just the priority of the Federal Government, but the pivotal role being played by the apex bank in providing scarce credit on such terms that are increasingly reasonable and competitive to the Nigerian farmer.

    Yet, it is tempting – at another plain – to see the development as another familiar Nigerian pastime of throwing cash at fundamental problems. An immediate concern is whether the apex bank, by the sheer number of initiatives already in place, is not actually biting off more than it can chew, or as it is increasingly proving to be, a case of simply putting new wines in old wineskins.

    Yes, we agree that the sector needs as much credit as the system can afford. Not only that, we also agree that the apex bank has a crucial role to play in catalysing the flow of credit to the sector. What is debatable is the overall usefulness of the multiplicity of related schemes in an environment where other basic factors necessary to guarantee success of the programmes are more often than not, unavailable. But even more important is whether a number of these activities could not have been better shouldered by the bank established precisely for this purpose – the Bank of Agriculture.

    So, while a lot has been said of how lack of investment has hobbled the development of strategic linkages in the agricultural value chain, from transportation to storage, preservation and marketing, Nigerians cannot but wonder whether the way forward is to have multiple but disparate programmes to address the different aspects of the same problems.

    Which of course takes us to another level – the question of whether adequate mechanisms currently exist to coordinate and evaluate the impact of the various initiatives. Here, we see the update by the apex bank on the performance of the ABS as only the starting point. Not only do we expect such routine updates on the ACGS and the CACS, it seems about time the Federal Government put an independent coordinating body in place to monitor the impact of the various intervention programmes being undertaken by the apex bank, particularly in the agricultural sector.

    That way, it would be easier to determine which of the initiatives are measuring up to their objectives and those that are not, to enable government make appropriate policy interventions.

     

  • BDCs boost forex receipts, account for over $20b yearly

    The Association of Bureau De Change of Nigeria (ABCON) has stated that one of the most efficient tools introduced in the management and stability of the country’s foreign exchange market by the Central Bank of Nigeria (CBN) was the involvement of the body in forex management.

    The Association’s national President, Alhaji Aminu Gwadabe, who spoke to The Nation in an exclusive interview in Lagos, stated that this is the first time the rate of Naira to other currencies has remained stabled for over one year.

    Gwadabe noted that this achievement was made possible by the partnership of BDCs with the CBN, which gave the former the opportunity to receive foreign currencies and sell at the CBN-regulated rates.

    According to him, over $20 billion come into the country annually through the BDCs, adding that the records of its members transaction goes a long way in helping the Economic and Financial Crimes Commission (EFCC) detect illicit financial transactions as well as cybercrimes.

    The ABCON boss noted that BDCs in India account for over 80$, saying that BDCs in India accounts for $30 billion annually as Indians are scattered all over the world.

    “The anti-money laundering and anti-terrorism laws are fast developing and taking shape and BDCs is part of financial institutions, though, the BDCs are the weakest link in the financial institution. It is easier to use them launder money. Having that scenario, it became very important to upgrade the knowledge of the BDCs and to sensitize them, hence, we embarked on the public sensitisation, through workshops, and training by Nigerian Financial Intelligent Unit (NFIU), an arm of the EFCC.

    “Part of the sensitisation is for our members to be able to easily detect a suspicious transaction so that it must be reported to the EFCC. There is a lot of security report that people are bringing in illicit funds to create havoc and to disrupt the peace of the country. Sometimes, these launders or money bags find it very easy to use these BDCs, so they prefer to use the BDCs because of the nature of some of the operators who do not keep records,” Gwadabe stressed.

    He said that BDCs were used as the vehicle to reach the unlicensed BDCs, which is the target of these money launders, as it is in line with antiterrorism financing.

    “We have a perfect relationship with the chairman of EFCC, CBN, the FIRS, and all other financial institutions. So, after that meeting in Lagos, we had a similar meeting with the EFCC in Abuja and Kano. This is to sensitise and train BDCs on the activities of money launders terrorism financing and to integrate reporting of these activities to the EFCC. We send our cash transection report of any amount that is above 5million, individuals and 10million for companies in the cash transaction in the NFIU. For instance, if you come to me with $10million, it is an obligatory requirement that such a transaction be reported. BDCs are also operated as an arm of the CBN. The only thing we are not doing is that we are not giving letter of credit. What the banks are doing, we are also doing.

  • Journalists barred as INEC distributes sensitive materials in Bauchi

    The Independent National Electoral Commission (INEC) has begun distribution of sensitive electoral materials to the 20 local government areas in Bauchi State for the rescheduled Presidential and National Assembly elections on Saturday.

    The exercise commenced at the Central Bank of Nigeria (CBN) office with Gamawa local government, the first to receive the sensitive materials.

    About 289 card readers, ballot papers and result sheet were conveyed in 2 different vans heading straight to the LGA while other LGAs followed suit.

    The Central Bank of Nigeria Bauchi was heavily manned with security.

    The political parties conducted themselves in an orderly manner.

    The sensitive materials were equally escorted by the police and some European Union observers.

    But journalists were barred from the CBN premises with only INEC officials, securities and foreign observers allowed in.

    Read Also: INEC and our suicidal political elite

    Acting Head of Department Voter’s Education and Public Enlightenment, Ahmed Waziri, said: “Unlike the previous arrangement we made that after receiving this type of sensitive materials, we took to the INEC office for redistribution to the respective local government areas.

    “Now that the custodian of the materials is CBN, we have to abide by the rules of the CBN in making such distribution”

    “On the issue of restriction I can only talk about the INEC jurisdiction. As per CBN, I can’t say anything.

    “I don’t work there, they have their own internal rules, INEC has nothing to hide. All the stakeholders especially the political parties, their representatives are here with us.”

  • Police reiterate readiness for rescheduled polls

    The Police Command in Nasarawa state on Thursday in Lafia, has reiterated readiness for the rescheduled Presidential and National Assembly elections in the state.

    The Commissioner of Police in the state, Mr Bola Longe, disclosed this while addressing newsmen after monitoring the distribution of sensitive electoral materials in the state.

    He also said that the police and other complementary security agencies were ready for the elections in the area.

    Longe said that the distribution of the materials was monitored under tight security from the Central Bank of Nigeria (CBN) office to the 13 local government areas of the state.

    “At about 7.30 p.m on Wednesday Feb. 20, all the distribution was concluded as items and vehicles were escorted under tight security to the 13 local government INEC offices across the state.

    Read Also: Two held for robbing policewomen

    “Let me assure the people of Nasarawa state that the sensitive materials at INEC offices are secured,” he said.

    He, however, urged the electorate to turn out en masse, on Saturday, to perform their civic duty of casting their votes peaceful.

    The commissioner assured them that the security agencies were prepared to tackle any form of criminality aimed to mar the electoral process in the area.

    NAN

     

  • INEC begins distribution of sensitive materials in Edo

    The Independent National Electoral Commission (INEC) in Edo, on Thursday began the distribution of sensitive materials to the 18 local government areas in the state for Saturday’s rescheduled elections.

    The first batch of the materials left the Benin branch of Central Bank of Nigeria (CBN) in an articulated truck at about 9.30 a.m.

    Read Also:Falae writes INEC chairman over retirement as SDP chairman

    The Resident Electoral Commissioner (REC) in the state, Mr Emmanuel Alex-Hart, told newsmen that the vehicle was conveying the materials to Uhunmwonde, Owan East, Owan West and Akoko-Edo Local Government Areas.

    The truck was accompanied by some buses conveying security personnel and political party agents.

    “The second batch of materials are loaded into another truck under the watchful eyes of security and party agents and the truck is heading to Etsako East, Etsako West and Etsako Central Local Government Areas.

    “The third truck is going to be loaded now with materials meant for Esan West, Esan Central, Esan North-East, Esan South-East and Igueben local government areas,” he said.

    According to Alex-Hart, the process is going on smoothly under the watchful eyes of security personnel and the party agents.

    “Hopefully, in the next few hours all the materials would have left the CBN to various local government areas.’’

  • National Collateral Registry registers 32,645 assets worth N688b

    The Central Bank of Nigeria (CBN) has disclosed that over N688.35 billion has been recorded as the value of moveable assets registered on the National Collateral Registry  platform since inception.

    CBN Governor,  Godwin Emefiele made this disclosure yesterday in Abuja at the 11th Annual Banking and Finance conference organised by the Chartered Institute of Bankers of Nigeria.

    According to Emefiele, “since the commencement of active cooperation in May 2016, 552 financial institutions have registered 32,645 financing statements valued at over N688.35 billion, $33.4 million and €60 million on the platform.” The CBN Governor described the National Collateral Registry as one of the programmes that makes funds available to the Micro, Small and Medium Enterprises sub-sector of the economy.

    He said the National Collateral Registry “is a financial infrastructure introduced to support the crippling market by enabling micro enterprises to use their moveable assets as collateral for bank loans.”

    He said, “I am very optimistic that the collateral registry will have tremendous impacts on MSME lending in Nigeria and in the foreseeable future. “This is especially considering with the recent launching of the economic recovery and growth plan which intends to leverage on the power of the private sector in its economic recovery and transformative growth by prioritizing all MSME’s in all critical sectors as a significant source of long term growth.”

    Other intervention programmes initiated to support the development of MSME funding in the country he said include: Small and Medium Enterprise creative guarantee scheme; and the Entrepreneurship Development Center.

    Godwin Emefiele then challenged banks and other financial institutions to come up with innovative ways to fund the Micro, Small and Medium Enterprises sub-sector of the economy.

    The CBN governor urged all participants at the conference to debate constructively on the ways to further support MSMEs in Nigeria to be able to perform their primary role of enhancing economic growth and inclusive development.

  • INEC commence distribution electoral materials in Kebbi

    The Independent National Electoral Commission (INEC), Kebbi State has confirmed that it has received all the sensitive materials meant for presidential and national assembly elections and would kicks off its distribution today Wednesday across 21 Local Government Areas in kebbi state.

    The Resident Electoral Commissioner in the state, Alhaji Ahmad Mahmud who confirmed this while briefing newsmen after inspection of the delivered materials at the Central Bank of Nigeria (CBN), Birnin-Kebbi, he notes that all the needed Card Readers have been configured.

    According to him, “I can confirm to you that we have received all the sensitive materials meant for Kebbi and all the Card Readers have been configured. Also, later today (Wednesday) we shall start distribution of all the sensitive materials across 21 local government areas in the state”, he said.

    Mahmud also discloses that 1,806,231 registered voters are expected to cast their votes in the national and state elections in the state stressed that 77,932 Permanent Voters Card (PVCs) were still unclaimed by eligible voters in the state.

    According to him, “the total registered voters in the state are 1,806,231 and we have 77,932 unclaimed PVCs in the state. The voting exercise will also take place in 2,398 polling units with 1,345 voting points in 225 wards.

    “We have over 16,000 adhoc staff, including collating officers, Returning Officers and other electoral officers that would supervise the elections. Let me all assured you that as of today, there is no flash point in kebbi state”. He added.