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Tag: loans

  • More cash for states as 11 get CBN’s loans relief

    More cash for states as 11 get CBN’s loans relief

    11 more states to get clearance for Fed Govt bonds

    Cash-strapped  states will soon clear their huge backlog of workers’ salaries.

    The Federal Government has approved the restructuring of the loans holding down their financial capacity.

    Of the 22 states which applied for the rescheduling of their loans, 11 have been cleared.

    Federal Government Bonds have been issued to 14 banks for the loans being owed by the 11 states.

    The news was broken yesterday as  part of the briefing on the outcome of the 60th National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo in Abuja.

    Kwara State Governor Abdulfatah Ahmed, one of the four governors who spoke to reporters after the meeting, said the remaining states would be cleared after the verification of their documents. He did not name the 11 states.

    Ahmed said: “Discussions were looked at in terms of restructuring of states’ indebtedness to commercial banks. The Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) told the Council that based on the approval of Mr. President of the plans to restructure the bank loans of states into Federal Government bonds to address fiscal imbalance, 22 states have submitted reports and applied for restructuring as at August 19, 2015.

    “The DMO has requested states to reconcile figures with banks where disparities have been noticed and have been jointly authenticated with the banks as at June 30, 2015. As at August 14 2015, of the 22 states that applied for the federal government bond, 11 states have so far scaled through with respect to submission of necessary documentation to support disbursement.

    “Others have been urged to quickly put their documentation in place to see that they fit into the time schedule. The DMO is reviewing the additional submissions by other states so that it comes as phase two of their programme.”

    The governor added that the Permanent Secretary in the  Ministry of Finance reported to the Council that the Excess Crude Proceeds stands at US$2.207 billion as at this month.

    Anambra State Governor Willie Obiano said CBN Governor Godwin Emefiele briefed the Council on the state of the economy and the exchange rate of the Naira.

    According to him, the CBN governor attributed the situation to some of the following: “Declining oil price, which put a drag on the foreign reserves; Exchange rate movements and pressure on the domestic currency; Inflation and tight monetary policy.

    He said the CBN governor told the Council that the apex bank had come up with some policies to address the situation. They include:

    • specific intervention in the foreign exchange market to stabilise rates;
    • cessation of foreign currency cash deposits in banks;
    • closure of CBN official foreign window; and
    • reclassification of eligible goods and services to the window.

    Obiano noted that the naira had appreciated as a result of the CBN’s stoppage of dollar cash deposit.

    Ogun State Governor Ibikunle Amosun said Edo State Governor Adams Oshiomhole presented a provisional report of the five governors ad-hoc committee set up by NEC to review the operations and management of the ECA/Federation Account.

    He said: “He told the Council that the Committee invited all the relevant revenue generating agencies that contribute to the Federation Account in the course of its assignment.

    “The Ad-hoc Committee recommended to the Council that in order to have a comprehensive report on the operations of the ECA/Federation Account, two International Audit Firms have been appointed to carry out Forensic Audit of the ECA/Federation Account between January 2010 and June 30, 2015.

    “Regarding the above, Council will in the near future receive a more comprehensive report.” He added that there is no law that bars NEC through the committee from appointing the audit firms.

    Amosun explained that NNPC Group Managing Director Ibe Kachikwu briefed the Council on the ongoing reforms in the petroleum industry.

    “He told the Council that the reforms will cover aspects of performance management, transparency and accountability, proper focus in investment attraction, zero tolerance for corruption, cost auditing improved stakeholders management and relationship and image rebranding among others.”

    The GMD, he said, also urged the governors to assist in protecting oil and gas infrastructure in their states.

    Jigawa State Governor Mohammed Badero spoke on the meeting’s decision in respect of the power sector.

    He said the Council was briefed that there was overall increase in power supply by 29 per cent as at the first six-weeks of the new Administration, compared to the last weeks of the previous administration.

    The Federal Government is targeting generation and distribution of 5,000 megawatts of electricity by December.

    According to him, power generation reached 4.662MW by July 29.

    He said that the Council has urged state governments to pay electricity bills by their vendors’ MDA, stressing that the Council was informed that at the moment, there is a 45 per cent default rate.

    The governors, Badero said, were also urged to assist with security to reduce vandalization of power distribution assets.

    He said they were also urged to encourage embedded generation for state-owned facilities.

    According to him, the TCN management contract has been extended for one year.

    Badero said that the Council was also informed that the top priorities in the next two months included repair of stranded hydro capacity, reduced load rejection by Discos, stopping hemorrhage of gas from power plants to industrial off-takers and fixing major transmission and transformation constraints.

  • Kebbi rice farmers to get loans

    Better days are here for rice farmers in Kebbi State as the Central Bank of Nigeria (CBN) has concluded arrangements to give them loans in order to improve and expand their production.

    A press statement signed by the Chief Press Secretary to the state governor, Abubakar Mu’azu said Governor Atiku Bagudu told residents of Kofa Kola that much when they visited him in his office.

    The governor told the people that in view of the fact the state is number one in rice production in the country, the Federal Government has directed the Central Bank to grant special loans to the state’s rice farmers to enable them exceed the ceiling approval for other states.

    The governor was said to have promised that talk has also begun with foremost flour milling companies in the country who have reportedly agreed to make funds available for the expansion of maize, millet and guinea corn production in the state.

     

  • Women farmers lament inability to get bank loans

    Women farmers have lamented their inability to access bank loans farming.

    They listed like poor road networks and dearth of land as some of the hurdles confronting women in the sector.

    The women farmers said this in Ilorin, the Kwara State capital at capacity building for small holders women farmers organised by Women Advocates Research and Documentation Centre (WARDC), supported by The United States Agency for International Development (USAID).

    Kwara State Coordinator, Country Women Association of Nigeria, Alhaja Bosede Anifowose, said: “Women in agriculture have a lot of challenges. The challenges are lack of good roads, bringing the produce from the farm to the market is a big problem. Another is that some of the women farmers do not have their own land. They rent land. In some cases, they need loans and they are unable to get loan.”

    Anifowose urged President Muhammadu Buhari to recognise women in farming, adding that fertiliser distribution does not get to the grassroots.

    She added: “We expect Buhari to bring some changes. The President should recognise women that are doing farming. We want Federal Government to recognise women in farming because some are doing poultry; fishery and even some are even cultivating crops. So there are some other problems like fertiliser. It does not get to the grassroots; it does not get to the real farmers.”

    The state Coordinator, Ifesuwapo Women Farmers Group, Mrs. Josephine Afolabi said: “We want President Buhari to make it possible for us to have agricultural inputs, fertiliser, seeds and farm machinery.

    “Most of our farmers are core farmers in the villages. They need good roads. They should be made to sell their produce directly to companies or final consumers. We need greater government commitment.”

    Earlier, WARDC’s Director, Dr Abiola Afolabi, said in addressing huge burden of hunger and poverty, the government must recognise the efforts of women in the sector.

    Her words: “It is reported that women small holder farmers constitute between 70 and 80 percent of the agriculture labour force. They produce the bulk of food for domestic consumption and they are the drivers of food processing, marketing and preservation.

    “In spite of these enormous tasks, they have limited access to land, credit facilities, farm inputs, training and advice, technology and health insurance. Women small holders have just 14 percent holding rights on land where they farm.

    “In spite of their strategic roles in food production, government agricultural policies hardly focus on supporting them. It is estimated that if women have had the same access to finance, land, technology, training and advice as men, they could contribute significantly to the achievement of the MDGs of eradicating extreme poverty and hunger.

    “The issues of women small holder farmers cannot be separated from the broader issue of gender inequality and discrimination against women. Women are still voiceless in issues affecting their lives and they are yet to be involved in decisions that affect their livelihoods and survival. In this instance on influencing agricultural policies, there is little or no involvement of women small holder farmers in local, states and national decision making and policy issues.”

  • Diamond Bank votes N6.6b for bad loans

    Diamond Bank votes N6.6b for bad loans

    • Profit After Tax down by 44%

    Diamond Bank Plc has posted  N5.8 billion  Profit Before Tax (PBT) in the second quarter of the year.  But the profit declined by  15 per cent compared to that of the previous year, while Profit After Tax (PAT) stood at N5.1 billion, representing a 13 per cent decrease.

    Analysts at FBN Capital, an investment and research firm, said the decline was caused by a 62 per cent increase in loan loss provisions of N6.6 billion and a nine per cent rise in expenses.

    A loan loss provision is an expense  reserved for defaulted loans, or credits.

    The analysts insisted that though profit before the provisions was up by nine per cent to N39.4 billion, this is not enough to offset the negatives on the loan provisions and expenses.

    “Diamond’s Bank’s impairment charge continues to be high in the sector and may worsen going forward, given the trend observed in some of the banks that have reported second quarter results, particularly given Diamond’s relatively high exposure to the Small and Medium Enterprises (SMEs) and the retail segments,” they said.

    Besides, Bloomberg consensus forecasts a PBT of N30.1 billion for Diamond for the year, but the performance of the lender portends a slight downward revision.

    Diamond Bank’s shares are down by 28.3 per cent, much worse than the All Share Index’s -10.2 per cent performance.

    For the analysts, though the bank’s cost of risk is in the three to 3.5 per cent range, below the four per cent guidance provided for the full year, it is believed the ratio is likely to worsen in the fourth quarter ended in December given the weak macro environment.

    “Further up the Profit and Loss, although both income lines contributed to the growth in pre-provision profits, non-interest income, which grew by 19 per cent year-on-year, was the stronger of the two lines. Funding income grew by only seven per cent year-on-year. Given that Diamond Bank’s loan book shrunk by two per cent quarter-on-quarter, it is believed that funding income most likely benefitted from a combination of higher yields on earning assets and a three per cent quarter-on-quarter decline in customer deposits,” they said.

    Sequentially, the bank’s PBT and PAT declined by 30 per cent per quarter and 44 per cent quarter mainly because non-interest income declined by five per cent per quarter while  expenses grew by 12 per cent quarterly.

    Compared with forecasts, PBT and PAT missed it by between 23 per cent and 25 per cent because profit before provisions came in four per cent behind forecast, expenses was around two per cent higher than analysts’ forecast.

    “The non-interest income line which came in around 18 per cent behind our forecast was the major driver behind the weakness in pre provision profit. In hindsight, our forecast may have been somewhat optimistic given how much deterioration the operating environment saw in second quarter,” they added.

     

  • FHA Mortgage Bank suspends MD over ‘questionable’ loans, others

    FHA Mortgage Bank suspends MD over ‘questionable’ loans, others

    •MD suspended as board orders forensic audit
    • Court stops MD’s suspension

    The Board of Directors of the Federal Housing Authority Mortgage Bank has appointed an independent firm to audit the bank’s books. It has also suspended the Managing Director, Mr. Roland Igbinoba, pending the outcome of the audit.

    The board’s decision to suspend Igbinoba, according to sources, followed the report of a committee set up by the Management to look into the bank’s operations. The report revealed abuses in the bank, erosion of shareholders’funds, several operational and administrative malpractices, pointing out that these could be a threat to the bank if not properly handled.

    In the build up to Igbinoba’s suspension, the Central Bank of Nigeria (CBN) had placed the FHA Mortgage Bank Limited, a subsidiary of the FHA, on “high risk” rating.

    In its 2014 supervisory report on the mortgage bank, CBN described the bank’s composite risk rating as high and directed that an emergency board meeting be called in four weeks to discuss the issues.

    The report noted that the loan disbursements were without approvals, adding that there were no limits for its various grades of services despite its board’s September 2014 credit recommendations.

    The report also highlighted the granting of staff loans without documentation and non-implementation of effective internal control procedures to safeguard its assets and prevent fraud.

    The Nation learnt that the measures were meant to protect the bank, FHA’s investment,  and shield the institution from risks.

    For instance, during the CBN-induced recapitalisation for mortgage banks, the FHA management was said to have handed over to its mortgage bank, assets in excess of N11 billion to facilitate the renewal of its licence by the CBN, and also ensure that it met the recapitalisation towards the issuance of a national license for the institution.

    The assets, in form of landed properties, were developed plots in the following estates: a 40 units FHA Estate at Apo, Abuja; FHA Estate at Gonin Gora, Kaduna Town, Kaduna State; FHA Estate at Odukpani, near Calabar, Cross River State; FHA Estate at Abesan, Lagos State; FHA Estate at Gombe, Gombe State; FHA Estate at Yenagoa, Bayelsa State, and FHA Estate at Osogbo, Osun State.

    However, the bank was unable to sell the assets within the statutory period granted by the CBN for the recapitalisation to get the licence to operate as a national mortgage bank; thereby forcing it to be a fringe operator at a regional level. It was gathered that since the outcome of the recapitalisation, which the bank failed to achieve the parent body’s expectation of being a national operator, the FHA management has written to Igbinoba to return the uncommitted properties in its possession to no avail.

    Yet, another source in the FHA informed The Nation that if at all the houses were sold, the amount realised from the sale could not be traced to any bank account despite Igbinoba’s claims that the money was in an account supervised by the CBN.

    Other areas that has threatened the bank’s liquidity bothers on operational malpractices. This, the FHA Management, the bank’s Board of Directors and recently the CBN 2014 reports noted to include: the inability to ascertain the bank’s liquidity position, a factor being fingered as a probable reason the bank is most times unable to meet customers demand as the deposit liability is more than what is available in the bank; the huge difference between the N226.4million profit declared by the bank in 2014 with the actual cumulative profit of N64.9million as at 31/11/2014; the fears that bank’s shareholders fund of N2,968,188,000 as at December 2013 seems to have been eroded as a result of the huge lending made from the capital of the bank; the drive for deposit mobilisation is not taken seriously by the bank; hence the amount raised through recapitalisation has been loaned out to its customers and most of the loans are non-performing

    The report also alleged that Igbinoba granted loans without the Board’s approval, including a personal loan of N35 million in 2014 at an interest rate of three per cent per year, whereas staff were charged  14 per cent interest per year.

    While our sources said Igbinoba was called to answer queries on the development, his response has remained unsatisfactory. Yet, there are more issues causing serious concerns. For instance, in the build up to the 2014 CBN’s Risk-Rating evaluation, the bank’s interest income accounted for an average of 33 per cent over the past three years; thus allegedly making the principal sources of income highly volatile, hence not acceptable by CBN. Besides, the bank’s deposit for shares if capitalised,sources say, will only bring shareholders funds to N2.399 billion, which is still below the regulatory minimum of N2.5billion.

    Also, worrisome is that the bank exceeds the single obligator limit of five and 20 per cent of its shareholder fund, thereby contravening Section 5.1(k) of the revised guidelines for primary mortgage banks (PMBs) in the country.

    The management noted that the bank did not have an approval limit for the various grades of its services despite the Board’s Credit Committee recommendation of September 2014. It also observed that the loans granted by the MD to himself lacked proper documentation and contravenes section 7.3 (3) of the guidelines.

    Other anomalies allegedly observed include that the bank did not implement some of the recommendations contained in the last examination report, thereby attracting financial penalty as contained in section 7.3 (23) of the guidelines; huge mis-match of deposits and credits in the time-bands of 1 – 30 days, 181 – 360 days and those above 360 days, and a poorly implemented debt recovery effort as only N5.718 million out of N253.183 million was recorded during the period in review.

    “From the foregoing issues, bordering on the bank’s CEO’s operational and administrative inconsistencies with the regulations, as well as his failure to take corrections or implement directives from the Board of Directors despite verbal and written admonitions, it has become imperative to take the necessary step of involving a third party to assess the status of the operations of the bank in order to prove which of the sides is wrong,” the FHA management submitted, adding that this would enable a quick action desperately needed to salvage the bank from risks.

    Since the creation of the subsidiary in 1997, the FHA, being the sole shareholder of the mortgage bank, has been supporting it technically and financially.The most recent landmark support was in 2013 when the CBN demanded that  all PMBs must recapitalise to a minimum of N2.5 billion for state licence and N5 billion for national licence. Then, the FHA Mortgage Bank had its share capital in negative position of N269million. Therefore, the FHA had to intervene by giving the bank landed properties worth N11 billion and also injected cash of N500 million to enable the bank meet up with the CBN’s requirement.

    Meanwhile, as the National Industrial Court in Abuja has restrained the board, from suspending Igbinoba. Justice M. N. Esowe issued the restraining order, following a motion ex-parte filed by his lawyer, Chike Okafor, in suit number NICN/ABJ/194/2015.  The FHA, FHA Homes Limited and Chairman of the board, Prof. Mohammed Al-Amin are co-defedants.

    The Board claims to have it has appealed the verdict.

  • UBA grows loans to N1.2tr

    The  United Bank for Africa  (UBA)  has recorded a  14 percent growth in its loan books to N1.12 trillion.

    The bank announced this as part of its December 2014 full year result at the weekend.

    This is the first time the lender’s loan book is exceeding N1 trillion.

    According to the lender, the loan growth is in line with management’s  target for the year. The result reflected in the low Non-Performing Loan Ratio of 1.55 per cent well below the Central Bank of Nigeria (CBN’s) recommended maximum of five per cent.

    Its Group Managing Director/Chief Executive Officer (CEO), Mr. Phillips Oduoza, said the lender expanded its loan books without compromising its focus on asset quality.

    The bank, he said, focuses its lending on emerging growth sectors such as agriculture, manufacturing, resource-based sectors such as oil, gas and mining, information communication technology (ICT), power and infrastructure.

    He said the bank’s high level liquidity and strong capital base make it the bank of choice for big-ticket transactions in the emerging African markets, where it continues to offer unique financial solutions to businesses and governments.

    Also, the bank’s Group Chief Financial Officer, Ugo Nwaghodoh, said the lender would continue to support Africa-focused businesses and governments, given its strong belief in the continent’s prospect.

    “We believe the opportunities in Africa far outweigh the risks, given our on-the-ground experience in these markets.  We, however, do not compromise our risk management criteria and selective approach to lending across all our target markets, as we focus on quality and profitable risk assets that fit into our sustainable growth principles and objectives,” he said.

    Its Group Chief Risk Officer,  Uche Ike said the growth in the bank’s loan books,  was in line with its moderate risk appetite in the year under review.

    He also said the bank was pleased with the quality of the risk assets created as reflected in the low 1.55 per cent NPL ratio and moderated 0.7 per cent cost of risk.

    “These measures of asset quality are evidence of our investment in risk management;  human capital and ERM tools. We will remain consistent in our responsible approach to lending, especially as we are conscious of macroeconomic headwinds in our core markets. We will continue to maintain a diversified portfolio, with strict concentration limits on obligors, sectors, market segments and markets. Moreso, we will be proactive than ever in our portfolio monitoring in the years ahead, as we are committed to being the industry benchmark on asset quality,” said Ike said.

     

  • BoI disburses N780 billion as loans, intervention funds

    BoI disburses N780 billion as loans, intervention funds

    The Bank of Industry (BoI) yesterday said it disbursed a total of N780 billion last year as loans and intervention funds to the nation’s real sector and other key sectors of the economy.

    Its Managing Director, Rashid Olaoluwa, who spoke at the yearly conference of the Nigerian Institution of Estate Surveyors and Valuers in Osogbo, Osun State, said the bank has also increased its intervention to critical sectors of the economy within the last five years, specifically between 2010 to 2014.

    He said: “BoI has become impactful within the last five years and at least 1.8million jobs have been created through such efforts.  Before 2009, the level of intervention was below N30 billion but we have been able to improve access of customers to the funds as well as increase their capacity in the utilisation of such facilities.

    “We are doing a lot of things to ensure that we can provide that comprehensive support to our small and medium enterprises. We are reviewing our regional status to state offices in order to be able to serve our customers better.”

    He also tasked members of the institution on the need to adhere to strict professional ethics adding that valuation of assets remained a critical aspect of financial intermediation that is often fraught with malpractices.

    According to him, it is often discovered that false values are placed on assets, adding that this practice is prevalent in an industry where professionals have decided not to adhere to ethical guidelines.

    He said:  “Development and financial institutions most times discover that the value placed on some assets does not represent the reality and this is affecting financial intermediation by development finance institutions. Estate valuers play a critical role in the society as they are at the centre in placing value on assets. As a bank, we depend on their judgment.  The institute needs to task its members on the need to embrace fair and ethical practice while performing their duties.

    “Similarly, professionals in the estate valuation industry cannot afford to ignore the place of technology in the discharge of their duties in other to be globally recognised and competitive.”

  • Rotary offers loans to SMEs

    Rotary offers loans to SMEs

    Rotary Club, Akowonjo District in Lagos says it will continue to grant non-interest loans to small scale businessmen and women within and outside the district.

    Speaking during the celebration of its 29th Anniversary, the association’s President, Mr Babatunde Alimi, said the club would not relent in its support for youths, adding that the club’s effort is to support governments’ youths’ empowerment programmes.

    He said this became imperative because this was the strategic role played by the club to enhance the masses’standard of living.

    He said polio eradication, enhanced literacy level and provision of sessions between the club and masses would continue to rank as priority in the club’s effort towards discharging its responsibility.

    Alimi said: “Rotary Club of Akowonjo being one of the Rotary’s numerous chapters in its almost 600 districts across the world was established 29 years ago.

    “We have championed the building of the Akowonjo/Dopemu bridge, construction of drainages a in Karimu Laka Street, constructed several boreholes in the environs, granted non-interest yielding refundable loans to small scale businessmen and women, and just last year we donated 10-room toilet facility worth N5 million to teachers and pupils in the environ.’’

    He added: “Recently, we donated medical consumables and drugs worth N5 million to Alimosho General Hospital Igando.

    “We will not relents in our efforts to supports the government and the people.‘’

  • Banks’ loans to private sector hit N17tr, says CBN

    Banks’ loans to private sector hit N17tr, says CBN

    Credit to the private sector on month-on-month basis,grew marginally by 0.7 per cent to N17.7 trillion in October, according to a Central Bank of Nigeria (CBN) Economic Report.

    CBN said the figure compared with the growth of 1.5 per cent at the end of the preceding month. The development was attributed to the 5.2 per cent and 0.5 per cent increase in claims on states and local governments and the core private sector.

    Over the level at end-December 2013, banking system’s credit to the private sector grew by 7.7 per cent.

    Also, at N16.4 trillion, aggregate banking system credit (net) to the domestic economy grew by 0.9 per cent, on month-on-month basis, compared with the growth of 2.7 per cent at the end of the preceding month.

    “The development relative to the preceding month, reflected the growth of 0.9 per cent and 0.7 per cent in net claims on the Federal Government and on the private sector. Correspondingly,  the level of growth at end-December 2013, was 9.1 per cent,” it said.

    Banking system’s credit (net) to the Federal Government, on month-on-month basis, rose by 0.9 per cent to negative N1.3 trillion, compared with the growth of 10.4 per cent at the end of the preceding month.

    The report showed that foreign assets (net) of the banking system declined by N6.9 trillion, or 9.1 per cent, compared with the decline of 0.5 per cent and 0.3 per cent at the end of the preceding month and the corresponding month of 2013 respectively.

    The development relative to the preceding month, was attributed to the decline of the 17.6 and 7.3 per cent in foreign asset holdings of commercial banks and the CBN, respectively.

    Over the level at end-December 2013, NFA declined by 18.7 per cent. The decline was attributed to the fall of 32.5 per cent and 15.4 per cent in the foreign asset holdings of both the commercial banks and the CBN, respectively.

    Other assets (net) of the banking system, on a month-on-month basis, rose by 4.1 per cent to negative N7 trillion, compared with the growth of 0.7 per cent and 4.5 per cent at the end of the preceding month and corresponding month of 2013, respectively. Over the level at end-December 2013, other assets (net) of the banking system grew by 11.2 per cent.

    Available data indicated that the money market rates were relatively stable during the review period. The banking system was awash with liquidity surfeit, occasioned by maturing Central Bank of Nigeria (CBN) bills, Cash Reserve Requirement (CRR) credit posting for the maintenance period, Joint Venture Cash (JVC) call and fiscal injections through statutory revenue released to the three tiers of government.

    Also CBN bills of diverse tenors were floated at the Open Market Operations (OMO) segment to mop up the liquidity surfeit in the system. In the review month, Standing Deposit Facility (SDF) was more predominant as there was liquidity surfeit in the banking system. There was no request for repurchase transactions, same as in the previous month.

    Provisional data indicated that the total value of money market assets outstanding in October 2014, stood at N7.5 trillion, indicating an increase of 2.2 per cent over the level in the preceding month. The development reflected the 1.8 per cent  and 2.7 per cent increase in outstanding FGN bonds and Nigerian Treasury bills, respectively.

    Provisional data indicated that growth in the key monetary aggregate contracted in October 2014. On month-on-month basis, broad money (M2) fell by 1.5 per cent, in contrast to the growth of 2.7 per cent in the preceding month. The development reflected the 9.1 per cent fall in foreign asset net of the banking system, which more than offset the effects of the 0.9 and 4.1 per cent growth in domestic credit (net) and other assets (net) of the banking system, respectively.

    Similarly, narrow money supply (M1) declined by 1.5 per cent below the level at the end of the preceding month due to the 4.6 and 0.7 per cent fall in its currency and demand deposit components, respectively. Over the level at end-December 2013, however, M2 grew by 4.2 per cent. Reserve money (RM) rose by 4.0 per cent at the end of the review month and was below the quarterly benchmark.

  • Lawmaker launches micro-credit loans

    Lawmaker launches micro-credit loans

    There is something to cheer among the Yagba people of Kogi State. Hon. Sunday Karimi who represents them at the House of Representatives has launched his jobs scheme called Yagba People Empowerment Initiative (YAPEIN).

    It thrilled hundreds of beneficiaries of the micro-credit loan facility.

    The lawmaker said he floated the scheme to assist low-income business entrepreneurs and start-up access to revolving soft loans to develop or grow their businesses.

    On the occasion held at the Town Hall, Isanlu, Yagba East Local Council, Kogi State, each of 112 Cooperative Societies representing 1,120 soft loan beneficiaries in Mopamuro, Yagba East and Yagba West local Government Areas received their cheques for N200,000 per group.

    Shedding more light on the programme, Chairman of the Board of Trustees of YAPEIN, Otunba Funsho Ibrahim, who is also the Chairman of Yagba East Local Government Council, said the initiative was aimed at empowering the-people at the grass roots level to create economics clusters for wealth creation thereby reducing  unemployment.

    Ibrahim said 4,400 people applied for the micro-credit soft loans out of which 112 groups representing 1,120 individuals benefited from the first phase. He said the second phase is billed for January 2015.

    Hon Karimi said the success of the pilot scheme has dispelled the rumour making the rounds that YAPEIN was not real or a ploy to deceive the people of the area.

    “I want to empower my people and make them happy. As you can see, the Yagba People Empowerment Initiative programme is real.”

    He added, “Yagba People Empowerment Initiative has the sole purpose of economically empowering the resident indigenes of Yagba, improving their standard of Living and increasing the financial output of Yagbaland. This initiative is borne out of the realisation of the fact that the resident natives of Yagbaland are also adversely affected by the high level of Poverty prevalent in Nigeria. My passion for qualitative representation of Yagbaland in the National Assembly includes taking steps and initiatives to alleviate the poverty of the people back at home. If extreme poverty is to be eradicated and become a thing of the past, dashing out paltry or meagre sums of money upon calls from the people cannot be a permanent solution to poverty, (if it is a solution at all). This is because for poverty to be effectively attacked, the causes of poverty need be addressed. The causes of poverty include unemployment, lack of capital for small businesses and handcrafts, idleness, non-performance of the real sector and death of small scale businesses in Nigeria.

    The launch witnessed the donation of eight Pathfinder Sports Utility Vans (SUVs) to traditional rulers in the constituency, three buses to the Peoples Democratic Party executives in the three local governments comprising Yagba Federal Constituency, while 80 motorcycles and 20 deep freezing refrigerators were also shared among youths and women respectively.

    Karimi disclosed that out of the N200m target, he had lodged an initial sum of N34 million with the banks, representing the number of the electoral wards in the constituency, at N1m  each.

    Governor Idris Wada who was present at the ceremony inaugurated the trustees.

    In April 2014, Hon Karimi added 13 more cars to various beneficiaries. It was on occasion of the 2014 Isanlu Day celebration. The empowerment items said to be worth over N10 million included nine Golf cars and four Ford space buses, all given out to new beneficiaries in addition to those distributed in December 2013.

    Hon. Karimi also pointed out that the initiative, launched in 2013, would soon take off, noting that the administrative staff to run the programme had already been recruited. He added that forms were available for collection at various designated points in the three LGAs.

    A beneficiary, Gbenga Bello, a commercial motorcyclist, from Okedisin, Egbe, Yagba West Council, who got N20,000, the little support from YAPEIN has helped him in his business in many ways.

    “I have a monthly contribution of N5,000. I can now effectively pay for two months upfront, which means I am covered for the rest of the year. I still have N10,000 left to fuel and maintain my motorcycle. It has brought me a relief because I can now plan and focus on other things including domestic needs of my family especially now that the Christmas and New Year season is fast approaching”.

    Ileri Oluwa Cooperative Society  and Empowerment Cooperative Society which got N200,000 each commended Hon Karimi for the initiative, describing YAPEIN as unprecedented in the area.

    The groups who have as members peasants, artisans and junior civil servants assured of judicious use of the facilities.