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Displaying items by tag: Central Bank of Nigeria (CBN)

The federal government of Nigeria says the 36 state governments and the Federal Capital Territory (FCT) will soon access World Bank’s $750 million grant.
 
The Minister of Finance, Zainab Ahmed, disclosed this at the 7th Community of Practice (CoP) for State Commissioners of Planning and Budgeting, in Abuja, with theme, ‘Achieving Realism in State and Federal Budgets for Effective Service Delivery.’
 
Mrs Ahmed, who found CoP in September 2016, as then Minister of State for Budget and National Planning, was invited to speak on issues concerning the group.
 
She expressed optimism that states will continue with their fiscal responsibility to serve as a platform to access the loan and grant from the World Bank.
 
The Community of Practice meetings, she said, enhances the state commissioners of planning and budget’s capabilities in performing their functions, and serves as platforms for facilitating peer learning and information exchange, strengthening coordination, collaboration and networking.
 
Issues being discussed at the 7th CoP meeting include expanding the forum beyond the current membership to include the minister of finance and commissioners of finance from states for better coordination and planning, budget and public finances.
 
She said: “During the course of these meetings we had the benefit of hosting the World Bank and several other opportunities, including the Governors’ Forum,” the minister said in a statement sent to PREMIUM TIMES.
 
“During the course of this exercise, the Ministry of Finance had to on instruction from the President provide bailouts to the state because at one point states were not able to pay salaries.”
 
Part of the conditions given for those bailouts, the minister explained, is a fiscal responsibility plan which need to be implemented for the states to continue to be qualified to access the funds that the federal government was giving.
 
The FSP, she noted, was quite successful because of improvements in the public financial management in a lot of states, some of which is evidenced in the increase in internally generated revenue and increase in the frequency of the preparation of financial statements in budgets.
 
This year, she said, it was so good that the World Bank acknowledged what the group has done by approving about $750mn in the form of concession loans and grants that will be available soon for the states to access.
 
She said the loans and grants are in the process of going to the Executive Council Federation (FEC) for approval.
 
She said the World Bank has already approved the grant and others, while government expects the states will continue to implement their fiscal responsibility to qualify them for this facility as well as the grant.
 
According to the minister, the principles agreed by NEC on the operations of the group were still as relevant as they were in 2016.
 
She urged the CoP to ensure the monitoring aspect of the principles still continue.
 
She charged the CoP to make monitoring of the process of implementation of budget a cardinal principle, because it would benefit and enhance what they are doing to improve the standard of living of the people in their states.
 
“Let me add that the need for monitoring is beneficial, because it will enhance process improvement. It will also help us to refocus ourselves as well as our principles to stay on those commitments that are made. But, most importantly, it will enhance public service delivery to the citizens,” she stated.
 
 
Source: NAN
Published in Bank & Finance
Mr Henry Ikem-Obih, Chief Operating Officer, Downstream, Nigerian National Petroleum Corporation (NNPC) says the Federal Government has paid the agreed N236 billion as first tranche of the outstanding subsidy claims to oil marketers.
Ikem-Obi, who disclosed this in an Interview with the News Agency of Nigeria (NAN) on Monday in Abuja, said that government, through the Central Bank, had directed banks to freeze interest on loans related to the scheme.
 
“Yes, I can confirm that the promissory note has been issued; in fact, they were ready on Wednesday. The marketers got emails inviting them to come and receive them on Monday.
 
“By the end of Tuesday, they were actually ready from the Debt Management Office (DMO). We had a meeting with the CBN Governor on Thursday and they were informed officially, the Director General of DMO was there that they should pick up the promissory note.
 
“Most of them were waiting for that meeting with the CBN governor, it went very well. one of the things that CBN governor has taken the initiative to do is to ask the banks to freeze the interest on any loan that are related to that scheme, the outstanding payment, from end of June 2017 to date.
 
“Those are some of the additional concessions that government has done,’’ he said.
 
According to him, all the promissory notes for this first tranche will mature by 2019.
 
“The CBN governor will give the Liquid assets status; so, it is as good as cash,’’ he added
 
Commenting on petrol scarcity, he said that at the moment, the country had in stock 2.7 billion litres of Premium Motor Spirit (PMS) that would last for 54 days and still importing.
 
He noted that in terms of supply, the NNPC was very robust and had never been this good in the least 10 years, at this time of the year.
 
“We are very good with distribution in terms of how much products is on land because 2.8 billion litres is what is between Lagos waters and land.
 
“Most Farm tanks cannot receive PMS at the moment; our vessels have to queue for days to be able to discharge to the storage.’’ He added
 
Also, petroleum products marketers had also confirmed receiving payment of N236 billion from the Federal Government for the first tranche of the outstanding fuel subsidy claims.
 
The Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Mr Olufemi Adewole, said, however, that the oil marketers still needed clarifications as regards the payments made by the Federal Government.
 
“Yes, we collected promissory notes, but we need clarification. DAPPMAN chief executive officers are reviewing the total scenarios and would meet with the Senate Committee, which has been of so much help to iron out things.”
 
He further confirmed that the payment was made via promissory notes, adding that DAPPMAN was already reviewing the situation.
 
He confirmed that the petroleum marketers would be meeting with the Senate Committee on Downstream to address other pending issues.
 
 
Source: PmNews
Published in Business
The board of Diamond Bank Plc on Monday finally announced its merger with Access Bank Plc expected to be completed in first half of 2019.
 
Both banks recently denied media reports of any merger.
 
Mr Uzoma Dozie, the bank’s Chief Executive Officer, said in Lagos the board had selected Access Bank as the preferred bidder with respect to a potential merger of both banks.
 
Dozie said the potential merger of the two banks would create Nigeria and Africa’s largest retail bank by customers.
 
He added that the transaction to be completed in the first half of 2019 was in the best interest of all stakeholders.
 
Dozie said the completion of the merger was subject to certain shareholder and regulatory approvals.
 
“The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.
 
“Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash,” he said.
 
Dozie also said the transaction would include the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.
 
“The offer represents a premium of 260 per cent to the closing market price of 87k per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of Dec. 13, 2018, the date of the final binding offer,” Dozie said.
 
He said the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law.
 
“The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective,” he added.
 
Dozie said the proposed combination with Access Bank would create one of Africa’s leading financial institutions.
 
“The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses, he said.
 
Mr Herbert Wigwe, Access Bank the Chief Executive Officer, said: “Access Bank has a strong track record of acquisition and integration and has a clear growth strategy.
 
“Access Bank and Diamond Bank have complementary operations and similar values, and a merger with Diamond Bank with its leadership in digital and mobile-led retail banking’
 
“This could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion,” said Wigwe.
 
 
Source: Routers
 
Published in Bank & Finance
A report by the Central Bank of Nigeria (CBN) has shown that Nigeria recorded $4.54 billion in deficit in the provisional Balance of Payments estimates for Q3, 2018.
 
The figure showed a significant downturn in the country’s position when compared to surpluses of $503m and $2.78bn recorded in the preceding quarter and the corresponding period of 2017, respectively.
 
The balance of payment is a summary of all monetary transactions between a country and the rest of the world. These transactions are made by individuals, firms and government bodies.
 
The CBN third quarter 2018 brief on balance of payment statistics released on Friday, also showed that Current Account Balance also worsened from a surplus of $4.45bn in Q2, 2018 to a deficit of $3.1bn in Q3 2018.
 
The financial account balance indicated an increased net incurrence of financial liabilities of $10.72bn in the review period as against $2.57bn recorded in the preceding period.
 
The CBN brief also noted that the current account indicated a negative outcome during the review period, recording a deficit of $3.10bn as against surpluses of $4.45bn and $1.97bn in the previous quarter and the corresponding period of 2017, respectively.
 
This, the brief said is because of increased payment for imports.
 
Export earnings rose by 2.8 per cent to $16.21bn in Q3, 2018 when compared with Q2, 2018.
 
The brief also showed that crude oil and gas dominated export arnings, accounting for 94.4 percent for the review, increasing by 9.5 per cent to $15.301bn in Q3, 2018, when compared with the preceding quarter.
 
Earnings from non-oil and electricity exports decreased by 49.3 per cent to $909m in Q3, 2018 when compared with the preceding quarter.
 
Available data showed that payments for the import of goods (fob) to the economy in the review period increased by 70.5 per cent to $14.085bn above the level recorded in the preceding quarter.
 
This was largely as a result of 79.7 per cent increase in the imports of non-oil products.
 
Direct Investments inflow increased by 0.7 per cent to $438.84m when compared with the preceding quarter of 2018.
 
It, however, indicated a decline of 45.0 per cent when compared to the corresponding period of 2017.
 
Similarly, portfolio investments inflow to the economy decreased significantly to $1.79bn in Q3, 2018 from $4.233bn and $3.320bn in the preceding quarter and the corresponding period of 2017, respectively.
 
The brief also showed that other investment liabilities increased slightly to $4.28bn when compared with $3.226bn recorded in the preceding quarter.
 
The stock of external reserves as of the end of September 2018 stood at $42.60bn indicating a depletion of 9.6 per cent when compared with the level in the preceding quarter.
 
 
Source: The Ripples
Published in News Economy

Nigeria’s inflation rate is expected to rise to about 11.4 per cent for the rest of this year till mid-2019, the Central Bank of Nigeria has said.

The CBN Governor, Godwin Emefiel*e, disclosed this while speaking on Nigeria’s outlook and policy thrust for 2019.

He said, “Inflation expectations are rising on the backdrop of anticipated politically related liquidity injections. For the rest of 2018 and towards mid-2019, Nigeria’s rate of inflation is projected to rise slightly to about 11.4 per cent and then moderate thereafter.”

The consumer price index, which measures inflation decreased to 11.26 per cent (year-on-year) in October2018, according to latest report by the National Bureau of Statistics on its ‘CPI and inflation report October 2018’.

The statistics revealed that this was a 0.02 per cent points lower than the rate recorded in September 2018 (11.28 per cent).

While speaking on the exchange rate, he said that although the CBN had so far managed to maintain exchange rate stability, the current capital flow reversals from emerging markets were expected to continue to exert considerable pressure on market rates.

This pressure, he added, could be amplified by the forthcoming elections, especially as the political marketplace heats up.

He said notwithstanding those pressures, the CBN was determined to maintain its stable exchange rate policy stance over the next few months, given the relatively high level of reserves.

“Gross stability is projected in the foreign exchange market given increased oil-related inflows and contained import bill. I would like to make it categorically clear that sustaining a stable exchange rate is of overriding importance to us even as we continue to put measures in place to shore up reserves,” he said.

While speaking on the balance of payments, he said it was expected to remain positive in the short term, and that oil prices continue to recover, adding that it was expected that the current account balance would strengthen even further.

“This will be supported by improved non-oil performance as diversification efforts begin to yield results to reduce undue imports,” he added.

Emefiele also said that the apex bank would explore the possibility of leveraging technology to enhance credit to critical sectors of the economy, especially agriculture and manufacturing.

 

Source: Punch

Published in News Economy
The Presidency has vowed to recover the $7 billion cash bailout given to commercial banks in the country in 2006 by the Central Bank of Nigeria, CBN.
 
This was disclosed on Wednesday by the Chairman of the Presidential Committee on the Recovery of Public Property, Okoi Obono-Obla in Abuja on Wednesday, vowing that the committee will take all necessary steps to recover the money.
 
Obono-Obla stated this at a public event organized by some civil society groups on the controversial Oil Prospecting Lease 245 in Abuja.
 
Obla-Obono also disclosed that the federal government was also investigating an unnamed top politician for running 20 companies in a European tax haven so as to evade tax payment to Nigeria.
 
He also added, that a leading oil firm that has withheld $1.9 billion oil revenue payment to Nigeria was being investigated and would be sanctioned for economic sabotage.
 
 
Source: The Ripples
Published in Business
Wednesday, 28 November 2018 12:57

CBN supplies $210 mn in wholesale FOREX market, others

The Central Bank of Nigeria (CBN) on Tuesday intervened in the wholesale segment of the foreign exchange market, supplying about $100 million to dealers in that window.

In the latest round of intervention announced in Abuja, the CBN said it also injected about $55 million each in the Small and Medium Enterprises (SMEs) and Invisibles segments to meet the needs of customers.

The Director, Corporate Communications Department at the CBN, Isaac Okorafor, again assured of the Bank’s continued mediation in the interbank foreign exchange market in order to guarantee stability.

Last week, the CBN also intervened in the wholesale segment of the inter-bank foreign exchange market on Wednesday, November 21, 2018 to the tune of $210 million.a

Meanwhile, the Naira continued its stable run against the United States dollars on Tuesday, November 27, 2018, exchanging at an average of N362/$1 in the BDC segment of markets across Lagos and Abuja.

Source: Premium Times

Published in Bank & Finance
The Central Bank of Nigeria (CBN) Wednesday injected $210 million into the foreign exchange market to help stabilize the naira.
 
Figures from the bank showed that it offered $100m to the wholesale segment, while the Small and Medium Enterprises segment received $55m.
 
The invisibles segment, comprising tuition fees, medical payments and basic travel allowance, among others, also received a $55m boost.
 
The Director, Corporate Communications, CBN, Mr Isaac Okorafor, who confirmed the figures, noted that the CBN was pleased with the state of the forex market, adding that the bank would continue to intervene in order to sustain the liquidity in the market and guarantee the international value of the naira.
 
According to Okorafor, the level of transparency in the market was also a boost to confidence in the market.
 
Consequently, the naira maintain its stability in the forex market, exchanging at an average of N361/$1 in the BDC segment of the market on Wednesday.
 
 
Source: The Ripples
Published in Bank & Finance
The Nigerian Federation Account Allocation Committee (FAAC) has disbursed a total of N6.226 trillion to federal, states and local governments in the country in the first three quarters of 2018.
 
This follows a steady rise in the amount of revenue that been going to the three tiers of government, with N2.28 trillion shared in the third quarter.
 
The breakdown shows that the Federal Government received the highest sum of N904.8b, followed by states, which received N718.5bn and Local Governments Areas receiving the lowest disbursement of N432.1bn.
 
This was contained in the latest edition of the Nigeria Extractive Industry Transparency Initiative Quarterly Review released in Abuja on Sunday.
 
NEITI said: “Total FAAC disbursements in the third quarter of 2018 amounted to N2.28tn, representing a 17.6 per cent increase over the N1.938tn disbursed in the first quarter of 2018 and 13.5 per cent higher than the N2.008tn disbursed in the second quarter.
 
“It is interesting that with the exception of July, the lowest amount disbursed so far in 2018 is higher than disbursements in all other months in 2016 and 2017.”
 
A comparison with the disbursed sums for 2016, 2017 and 2018 showed that the disbursements in the third quarter of 2018 (N2.28tn) were 31 per cent and 18 per cent higher than disbursements in the third quarters of the last two years.
 
NEITI also stated that the last time total disbursements exceeded the N2.5tn mark was in the second quarter of 2014 (N2.51tn).
 
A further analysis of the increase as reported by the NEITI Quarterly Review showed that the Federal Government’s receipt of N904.8bn in the third quarter of 2018 was 11.3 per cent and 7.8 per cent higher than the amounts received in the first (N812.8bn) and second (N839.5bn) quarters respectively.
 
NEITI said: “The amount disbursed to states represented an increase of 5.1 per cent over the N683.5bn disbursed in the first quarter, and an increase of 3.8 per cent over the N692.1bn disbursed in the second quarter.
 
“For LGAs, the amount received was 9.8 per cent and 7.5 per cent higher than the respective amounts of N393.4bn and N402.1bn received in the first and second quarters.”
 
 
Source: NAN
Published in Bank & Finance
Telecommunication company, MTN Nigeria, has sued the Nigerian government to the tune of N3 billion.
 
The firm, in the new suit, is challenging the legality of N242 billion and $1.3 billion import duties and withholding tax demanded from it by the Nigerian government.
 
The embattled company, in the suit filed at the Federal High Court in Lagos, is demanding the N3 billion for general and exemplary damages and legal costs from the defendant.
 
A judge, Chukwujekwu Aneke, on Thursday, adjourned the suit until December 3 for hearing after counsel confirmed that motions have been filed and served on parties.
 
In the suit filed on September 10, the telecom firm is contending that the purported “revenue assets investigation” allegedly carried out by the Nigerian government for the period of 2007 to 2017 violates the Nigerian constitution.
 
Also, the telecom firm is claiming that the government’s decision conveyed through the Office of the AGF by an August 20 letter, violates the provisions of Section 36 of the 1999 Constitution.
 
The firm is seeking a declaration that the AGF acted in excess of its powers by purporting to direct through its letter of May 10 a “self-assessment exercise” which usurps the powers of the Nigerian Customs Service to demand payment of import duties on importation of physical goods.
 
It is also seeking a declaration that the AGF acted illegally by usurping the powers of the Federal Inland Revenue Service (FIRS) to audit and demand remittance of withholding and value added taxes.
 
According to the suit, the telecom firm prayed for a declaration that the AGF’s demand of the sums is premised on a process that is malicious, unreasonable and made on incorrect legal basis.
 
The Central Bank of Nigeria had been at loggerheads with the telecom firm following sanctions over alleged illegal repatriation of funds. The CBN accused MTN Nigeria of improper dividend repatriations and demanded that $8.1 billion be returned “to the coffers of the CBN”.
 
Abubakar Mallami, the Attorney-General of the Federation, in a separate move, also slammed a tax bill on the firm, wherein he accused MTN of unpaid taxes on foreign payments and imports, asking it to pay approximately $2billion in relation to the taxes.
 
According to the CBN, MTN and four banks flouted the “laws and regulations…including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and the Foreign Exchange Manual, 2006.”
 
The four banks––Standard Chartered Bank, Citi Bank, Stanbic IBTC Bank and Diamond Bank – were subsequently debited. They all denied wrongdoing.
 
Hearing of the new suit has been scheduled for December 3.
 
 
Source: Premium Times
Published in Telecoms
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