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  • Foreign reserves hit $47bn – CBN

    The Central Bank of Nigeria (CBN) has said the country’s foreign reserve as at April 5, 2018, stood at $47.37 billion.

    The new figures rose from about $46.2 billion realised at the end of March.

    The CBN Governor, Godwin Emefiele, announced the new balance in the reserves on Monday at the opening of the 25th seminar for Business Editors and financial Correspondents in Uyo.

    Mr Emefiele, who was represented by the newly appointed deputy governor, Corporate Services, Edward Adamu, said the CBN hopes to meet the $50 billion target before the end of the year.

    Nigeria’s latest foreign reserves is about $4 billion more than that of South Africa.

    South Africa’s net foreign reserves rose to $43.384 billion in March from $43.272 billion in February, the Reserve Bank said on Monday.

    Gross reserves fell to $49.979 billion from 50.051 billion dollars, the South African central bank data showed.

    The forward position, which represents the central bank’s unsettled or swap transactions, fell to $1.996 billion from $2.057 billion.

    “The decrease of 72 million dollars in the gross reserves reflects the foreign exchange payments made on behalf of the government.

    “It was partially offset by the depreciation of the U.S. dollar against most currencies,” the South African central bank said.

  • Emefiele assigns portfolios to new CBN deputy governors

    Governor of the Central Bank of Nigeria Godwin Emefiele has assigned duties to the newly appointed Deputy Governors who assumed duty on March 28.

    The acting Director, Corporate Communications Department, CBN, Mr Isaac Okoroafor, in a statement on Sunday said Mrs Aishah Ahmad was deployed to the Financial System Stability Directorate, while Mr Edward Lemetek Adamu was assigned to Corporate Services.

    Emefiele also approved the deployment of Dr Okwu Nnanna from the Financial System Stability Directorate to the Economic Policy Directorate.

    “Mr Adebayo Adelabu, however, retains his portfolio as Deputy Governor, Operations Directorate, ” Okoroafor said.

    According to Okoroafor, the affected principal officers have since assumed duty in their new duties.

     

  • CBN lends banks N27.6tr in six months – Report

    Commercial Banks borrowed N27.46 trillion from the Central Bank of Nigeria (CBN) in six months, data from the apex bank’s half year report on financial sector performances released on Tuesday shows.

    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, 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.

     

  • 20 MDAs seek NITDA’s clearance of IT projects

    No fewer than 20 Ministries Department and Agencies (MDAs) have submitted requests to the National Information Technology Development Agency (NITDA) in 2018 for clearance of their information technology projects.

    Mrs Hadiza Umar, the NITDA Head of Corporate Affairs and External Relations, made the disclosure in an interview with the News Agency of Nigeria on Wednesday.

    She said that some of the MDAs had been fully cleared, while some others had provisional clearance and the rest at various stages of the clearance process.

    Umar noted that NITDA recently cleared the Central Bank of Nigeria (CBN) Information Communication Technology (ICT) security and system infrastructure upgrade projects.

    According to her, the cleared projects include Enterprise Network Security – Gateway Security project – aimed at upgrading the bank’s network appliances and ensures that network appliances are highly available and provides comprehensive real real-time protection against advance threat.

    She said that clearing of the projects would enhance ICT performance and protect the country’s cyberspace against threats.

    She said that potential targets of cyber-attacks were bank, health, power and transportation systems, as well as other critical national infrastructure.

    “The CBN, in its efforts toward mitigating these threats, especially in the country’s financial institutions, initiated the implementation of the projects,” she noted.

    NITDA is responsible for implementing the Nigerian Information Technology Policy and coordinating general information technology development and regulation.

    Section 6 of the enabling Act mandates NITDA to create a framework for the planning, research, development, standardisation, application, coordination, monitoring, evaluation and regulation of information technology practices in Nigeria.

     

  • CBN injects fresh $339.89m into forex market as Naira exchanges for N362/$1

    CBN injects fresh $339.89m into forex market as Naira exchanges for N362/$1

    The Central Bank of Nigeria (CBN) on Friday sustained its intervention in the Foreign Exchange market by injecting 339.89 million dollars in the Retail Secondary Market Intervention Sales (SMIS) segment.

    The Acting Director, Corporate Communications Department, CBN, Mr Isaac Okoroafor in a statement on Friday, said the continued interventions were in line with CBN’s pledge to sustain market liquidity in order to boost production and trade.

    Okoroafor said that the amount released was for requests in the agriculture, airlines, petroleum products and raw materials, and machinery sectors.

    According to Okoroafor, the feedback from the wholesale and retail segments of the Nigerian Foreign Exchange markets showed that customers are satisfied with their level of access to foreign exchange.

    He also assured Nigerians that the recent confirmation of Deputy Governors and Monetary Policy Committee (MPC) nominees by the Senate would further spur the bank toward taking sound decisions needed for economic development.

    Recall that the apex bank had on March 19, injected 210 million dollars into the Wholesale segment of the foreign exchange market.

    Meanwhile, the naira exchanged at N362 to a dollar in the Bureau de Change segment of the market.

  • Light bill: Reps move to curb excessive charges

    Light bill: Reps move to curb excessive charges

    The House of Representatives on Thursday said it would meet with Community Development Associations (CDAs) in different geo-political zones in the course of its Ad Hoc Committee assignment, to curb excessive electricity charges.

    Chairman of the committee, Rep. Ajibola Famurewa (Osun-APC), who made the assertion at the inaugural meeting of the committee, said excessive electricity charges were being levied on consumers by distribution companies (Discos).

    He said that majority of Nigerians were suffering under the arbitrary charges for electricity from the distribution companies.

    “The committee was given the mandate by the House to determine the differences between the prepaid meters installed by the Power Holding Company of Nigeria (PHCN) and the MOJEC prepaid meters by DISCOs.

    “It would also determine the costing algorithm used by Nigerian Electricity Regulatory Commission (NERC) in arriving at the consumers’ price.

    “The committee is to ascertain the average cost of electricity in West African sub region vis-a-vis Nigeria.

    “Its mandate also include finding out why DISCOs have not complied with the deadline of March 1, 2017 in phasing out the estimated billing system.”

    According to him, relevant organisations and agencies to be investigated include Federal Ministry of Power, Works and Housing, the Central Bank of Nigeria , (CBN), the Consumer Protection Council, Nigerian Electricity Regulatory Commission (NERC), Nigerian Bulk Electricity Trading Company (NIBET) and the Transmission Company of Nigeria.

    Others are Electricity Distribution Companies of Nigeria (DISCOs), Nigeria Labour Congress, and Association of Nigerians Electricity Consumers among others.

    Famurewa said that there would be zonal interactive sessions with electricity consumers in a bid to understand the scope of the problem.

    According to him, the committee will try to meet the six weeks given as deadline by the House.

    This, he said, was to allow the House takes a timely decision on the issue to ease the suffering of the people.

     

  • Teleology finally takes possession of 9mobile

    Teleology Holdings Ltd., says it is transferring a non-refundable completion deposit of 50 million dollars to the trustees of the bank syndicate presently holding ownership of 9Mobile.

    The company made this known in a statement signed by Mr Adrian Wood, Teleology’s Director and pioneer Managing Director of MTN Nigeria.

    Wood said the payment underscored Teleology’s financial capability and readiness to revive the organisation, adding it was set to aggregate a 10-point to turn 9mobile around.

    “The Nigerian telecom sector is set to witness a new era of innovation and vibrancy as Teleology puts finishing touches to its acquisition of 9mobile, Nigeria’s 4th telecom services provider.

    “In the last few days, key executives of the organisation have been deep in meetings with the Nigerian bank syndicate, the regulatory authorities and advisors.

    “These meetings have culminated in the signing of the Share Purchase Agreement (SPA) and other contractual documents pertaining to the acquisition.

    “Ahead of the March 22 deadline set by the Financial Advisers, Teleology has also transferred a non-refundable completion deposit of 50 million dollars to the trustees of the bank syndicate presently holding ownership of 9Mobile.

    “Equally important, Teleology has detailed an ambitious plan of action that will guide its rapid overhaul not only of the network but all aspects of the operations,” he said.

    According to Wood, 9mobile is transiting into a new phase that will be defined by optimal value delivery: value to our employees, value to our customers, value to local communities and indeed to all stakeholders.

    He added that the new organisation to emerge would be “engineering- led and brand-driven”.

    He said in delivering service, it would strive to ensure that 9Mobile operations delivered fulfillment to the customers, empowerment to local communities, protection to the vulnerable, and excellent rewards not only to the shareholders but to all stakeholders.

    Wood said the company planned to double the 9Mobile network with new 3G/4G specific cell sites as well as a several thousands of kilometers of fiber optic cable across the country.

    He said it would drive a special programme of rural internet coverage, focusing on 4G with broadband access planned for all of Nigeria’s 774 local government areas.

    He said youth engagement and employment programmes were also planned with all build contractors, distributors and consultants, while investment in broadband internet access technologies which were completely new to Nigeria was also planned.

    “Very importantly, the 9Mobile network will be optimised for high speed and high capacity data including imaging, video, games, music, IPTV and more.

    “Any three-point plan or three-dimension idea is naïve and completely missing the scope and complexity of the urgent Nigerian need to be brought into the 21st century broadband era.

    “Teleology envisages an increase of 50 per cent in direct employment in the new 9Mobile.

    “There is also an active plan to introduce within the first year, several million 4G-capable premium quality smartphones, at exceedingly affordable pricing.

    “Nigerians should look forward to a new regime of intensely exciting and innovative brand loyalty rewards programmes, from the new 9Mobile,” he said.

    He said that Teleology had entered into an alliance with Safaricom, the largest network operator in East Africa, famous for its global “mpesa” mobile financial services system.

    He said the system advances financial inclusion and supports the network with the highest operating efficiencies in Africa.

    He said that Teleology’s coming at a period when competition in the Nigerian telecom industry had for some years been limited to price wars between the various GSM companies, clearly, would herald a new era of intense competition and market share.

    He said that Teleology was promoted by a group of 12 telecom industry veterans with considerable experience not only in Nigeria and Africa but in the global telecom space as well.

    Wood commended the Barclays Africa, the Financial Advisers to the transaction, the Nigerian bank syndicate, the fulsome backing and support of the Nigeria Communications Commission and CBN which made 9Mobile’s survival possible.

    He also commended the loyal 9Mobile management and staff who carried on in the face of skepticism, doubt and negative market sentiment.

    He assured that additional details including formal relaunch plans would be unveiled in due course.

    Teleology emerged as the new owner of 9mobile ahead of Smile, which had been the only other bidder in the final round of the takeover bid.

    At the beginning of submission of bids, over 10 bidders had indicated interest in acquiring the mobile network, only five were shortlisted.

    These include Bharti Airtel, Globacom, Helios Investment, Smile Communications and Teleology Holdings Ltd.

    The acquisition bid was as a result of the Mubadala Development Company of the United Arab Emirates, 9Mobile (formerly Etisalat) largest shareholder, pulling out its investment out of the country.

    The pullout was over a protracted 1.2 billion dollars syndicated loan alleged to have been mismanaged by the former board of the telecommunications firm.

     

  • Senate screens CBN, MPC nominees

    The Senate Monday screened President Muhammadu Buhari’s two nominees for the position of Deputy Governor of the Central Bank of Nigeria (CBN).

    The nominees are Mrs. Aisha Ahmad and Mr. Edward Adamu.

    Similarly, four other nominees were also screened as members of the Monetary Policy Committee (MPC). They are Prof Festus Adeola Adenikinju, Dr. Aliyu Rafindadi Sanusi, Dr. Robert Chikwendu Asogwa and Dr. Asheikh Maidugu.

    The nominees took turns to face the Senate Committee on Banking, Insurance and other Financial Institutions, as members of the committee threw a barrage of questions at them.

    Mrs. Ahmad who was accompanied to the venue of the screening by her husband and her father, was the first to be screened. In response to questions, the nominee stressed the need for the country to have a stable foreign exchange policy in order to stabilise the economy.

    On his part, Edward Adamu, who is widely acknowledged to have been appointed on merit, based on his track record at the apex bank, was not subjected to the grill. Members of the Senate committee were unanimous in giving him a smooth passage.

    Earlier moves, allegedly by some Presidency cabal to replace Adamu with a preferred candidate were vehemently resisted by his colleagues at the CBN who vowed to frustrate such manipulation.

    The Senate had put on hold the screening of the nominees and others appointed by President Muhammadu Buhari for several weeks, owing to disagreement between the two arms of government.

    At the commencement of the exercise, the Senior Special Assistant to the President on National Assembly matters (Senate), Ita Enang, pleaded with the lawmakers to also screen other nominees of the President whose nomination are still pending.

    Chairman of the Senate committee, Senator Rafiu Ibrahim, however, said the leadership of the Senate decided to yield ground owing to the strategic and sensitive nature of the nominees’ appointments.

  • Senate begins confirmation of CBN’s MPC nominees

    The Senate on Wednesday mandated its Committee on Banking and Finance to begin the process of confirming four presidential nominees as members of the Monetary Policy Committee of the Central Bank of Nigeria (CBN).

    This followed the adoption of the communication from President Muhammadu Buhari, requesting the Senate to confirm the nomination of the four appointees.

    The nominees are Prof. Adeola Adenikinju, Dr Aliyu Sanusi, Dr Robert Asogwa and Dr Asheikh Maidugu.

    The Senate would also consider Buhari’s request that Mrs Aisha Ahmad and Mr Edward Adamu be confirmed as CBN Deputy Governors.

    Moving for the adoption of the request, the Senate Leader, Sen. Ahmed Lawan said that the process was in accordance with the provisions of Section 12 (1)(4) of the CBN Act 2007.

    The President of the Senate, Dr Bukola Saraki, gave the committee one week to consider the requests.

  • Nigeria’s External reserves hit $46 billion – CBN

    The Central Bank of Nigeria (CBN) on Sunday disclosed that the nation’s external reserves currently stands at $46 billion, saying the figures are steadily heading towards the $50 billion mark.

    CBN Spokesman, Isaac Okoroafor, said in a statement on Sunday that the reserves grew by about $3.2 billion between February and March 2018. The reserves at the beginning of 2018 stood at $39.3 billion, then rose to $42.8 in February before hitting the new high of $46 billion as at the close of work on Friday, March 9.

    Confirming the figures, the CBN Acting Director, Corporate Communications Department, Okoroafor, attributed the continued accretion to the country’s reserves to the Bank’s effort at vigorously discouraging unnecessary importation and reducing the nation’s import bill; inflow from oil and non-oil exports, as well as the huge inflows through the investors and exporters window of the foreign exchange market, which he said had attracted over $33 billion since April 2017, when it was created.

    At the close of commodities trading on Friday, March 9, Brent Crude sold at $65.49 a barrel, up by 2.54 per cent.

    According to him, the Bank’s interventions in the foreign exchange window had also helped to moderate the pressure on the FOREX reserves by sustaining liquidity in the market and boosting production and trade.

    Okoroafor also noted that the CBN policy restricting access to FOREX from Nigeria’s foreign exchange market to importers of some 41 items had made a huge impact on the status of Nigeria’s reserves and boosted the supply of local substitutes for imported goods, created jobs at home and enhanced the incomes of farmers and local manufacturers.

    Central Bank Governor, Godwin Emefiele, at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos in November 2017, had projected that Nigeria’s external reserves would hit the $40 billion mark in 2018. That conservative projection has since been surpassed.