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CBN

  • Credit to Corporate sector to increase in 2017 – CBN

    Credit to Corporate sector to increase in 2017 – CBN

    The Central Bank of Nigeria (CBN) on Thursday said the overall availability of credit to the corporate sector was expected to increase further in first quarter of 2017.

    The CBN said in the Credit Condition Survey Report, posted on its Website, that the credit to the same sector increased in the fourth quarter of 2016.

    The bank attributed the increase in credit availability to some major factors which included changing in sector specific risk and brighter economic outlook.

    It said others include: improved liquidity conditions and tight wholesale funding conditions.

    The CBN said the demand for secured lending for house purchase increased in fourth quarter of 2016 and was expected to increase further in the next quarter.

    “In spite of lenders’ stance in tightening the credit scoring criteria in the current quarter, the proportion of loan applications approved in the fourth quarter of 2016 increased.

    “Demand for unsecured credit card lending and overdraft personal loan from households decreased in the current quarter but was expected to increase in the next quarter, ‘’ the apex bank said.

    It added that due to lenders’ stance on the tightening in the credit scoring criteria, the proportion of approved households’ total loan applications decreased in the current quarter.

    The CBN, however said that it was expected to decrease further in the next quarter.

    On demand for secured lending for house purchase, which increased in the fourth quarter of 2016, the bank said it was expected to increase further in the next quarter.

  • CBN denies reports of allocation of dollars

    CBN denies reports of allocation of dollars

    The Central Bank of Nigeria (CBN) has denied reports from some quarters that it allocates dollars unilaterally.

    A statement by Mr Isaac Okoroafor, Acting Director, Corporate Communications on Saturday in Abuja, decried the way some Nigerians chose to disparage those in leadership at this time in total insensitivity to the larger interests of the Nation’s economy.

    He added that the CBN had set up an inter-bank foreign exchange market where anyone who wishes to buy foreign exchange could bid for and buy through their banks.

    ”It is not true that CBN allocate’s dollars.

    ‘There is no where in the world that the Central Bank sits by and allows vicious speculators to solely distort the value of its currency endlessly.

    ”All central banks intervene to buy or sell in the market to ensure that the local currency is protected from dubious attacks.”

    He said that the channels for advice and contribution of ideas on the current economic situation by all patriotic Nigerians were open.

    Okoroafor pointed out that the seed of the nation’s current economic crisis was planted by the failure of those who occupied public office in the past but failed to act in the long term interest of the Nigerian economy.

    He said it was easy for people to criticize from outside when they were already out of office.

    According to him, the challenge the nation faced today was a choice between pandering to the established interest in Nigeria’s speculative economy and the protection of the wages of the real stakeholders who work hard on fixed incomes.

    He said those were the core victims of the Naira depreciation.

    He, however, assured Nigerians that the apex bank and the Federal Government will continue to explore avenues to find solutions to the current economic situation.

  • CBN/$30bn loan: Sanusi lacks facts, spoke from point of ignorance – Presidency

    CBN/$30bn loan: Sanusi lacks facts, spoke from point of ignorance – Presidency

    The Presidency on Saturday said the Emir of Kano, Muhammadu Sanusi II, did not have the facts on the issues over which he criticised President Muhammadu Buhari’s administration.

    It also said that $30 billion loan which the government was seeking senate approval for was for the building of massive social infrastructure.

    Sanusi had, on Friday, said the Buhari administration lacked the right policies to fix Nigeria’s economy, even as he warned of grave consequences of borrowing $30bn from external sources.

    He had stated that even if the Senate approved the loan, no foreign nation or financial institution would be willing to accede to the country’s loan request.

    But responding through the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, the presidency admitted that the federal government had made withdrawals from the account but not the volume of N4.5 trillion as Sanusi alleged.

    “With every respect to the Emir, you know he is my ruler,because I come from Kano.

    “He doesn’t have his facts as far as those issues are concerned. The issue in CBN, that government has overdrawn its Central Consolidated Account is true, but the overdrawing is within limits.

    “The overdraw does not exceed 1.5 trillion. It is incorrect to say, as he did that the account was overdrawn by 4.5 trillion. “But even assuming that he was correct, this is a government that has money in excess the amount he mentioned in the Treasury Single Account, TSA.

    It is just like you, a bank customer operating two accounts, one in the red and the other, well funded to the point that it can at any time wipe the indebtedness on the other. Would any bank manager lose their sleep over this?

    “This, I am told is what the IMF found at the CBN and they said it is perfectly normal. “As for his opposition to the USD 30 billion loan, I am aware that the Minister of Finance is responding to that.

    “As a private citizen, I want to read his statement again. I thought that the borrowing is for projects that include the railway and electricity development in the country”, Shehu said.

  • It is easy to criticise from outside, CBN tells Sanusi

    It is easy to criticise from outside, CBN tells Sanusi

    The Central Bank of Nigeria, CBN has reacted to a statement credited to Muhammad Sanusi II, emir of Kano and former governor of the Central Bank of Nigeria (CBN), accusing the apex bank of illegally lending to the federal government.

    In his reaction to Sanusi’s statements, CBN’s Ag. Director, Corporate Communications, Isaac Okoroafor, said it is always easier to criticise from outside, stressing that the grass seems greener when people are out of office.

    His words, “First I want to state that the Central Bank of Nigeria has set up an inter-bank foreign exchange market where anyone who wishes to buy foreign exchange can bid for and buy through their banks.

    It is not true that CBN allocates dollars. There is nowhere in the world that the Central bank sits by and allows vicious speculators to solely distort the value of its currency endlessly.

    All central banks intervene to buy or sell in the market to ensure that the local currency is protected from dubious attacks.

    The channels for advice and contribution of ideas on the current economic situation by all patriotic Nigerians are open. It is rather unfortunate that some people have chosen to play to the gallery and to make statements to disparage those in leadership at this time in total insensitivity to the larger interests of the Nigerian economy.

    We should not forget that the seed of our current economic crisis was planted by the failure of those who occupied public office in the past but failed to act in the long term interest of the Nigerian economy. It is easy to criticize from outside.

    It is always easier and the grass greener when people are out of office. The challenge we face today is a choice between pandering to the established interest in Nigeria’s speculative economy and the protection of the wages of the real stakeholders who work hard on fixed incomes. For they are the core victims of Naira depreciation.

    At this critical time in the life of our country the CBN will continue to explore avenues with the Federal Government in order to find solutions to the current economic situation. Already Nigerians are waking up to the call to be more productive and to look inwards and to be less dependent on the importation of foreign goods and services.