CBN Calls For Sale Of Redundant Public Assets

 

The monetary policy committee of the Central Bank of Nigeria is asking the Federal Government to consider the sale of its redundant public assets as part of efforts to increase its revenue base.

Speaking at a news conference after the monetary policy committee meeting in Abuja, the Central Bank Governor, Mr Godwin Emefiele, said  the sale of redundant public assets would create significant revenue for government and resuscitate the redundant assets to generate employment and contribute to the nation’s economic growth.

READ ALSO: MPC Retains MPR At 13.5%

Mr Emefiele applauded the Federal Government’s plan to increase the value added tax from five percent to seven point five percent.

He said the increase would improve fiscal revenue to support expenditure and reduce the budget deficit and government borrowing when implemented.

MPC Retains MPR At 13.5%

CBN Governor, Godwin Emefiele.

 

The Monetary Policy Committee of the Central Bank of Nigeria has retained the Monetary Policy Rate at 13.5%.

Governor of the Central Bank, Godwin Emefiele, made the announcement on Friday during the MPC meeting in Abuja.

This is the sixth month the apex bank has maintained the rate after it was dropped from 14% to 13.5% in March.

According to Emefiele, the decision was unanimously agreed upon by all committee members.

He said, “The committee has decided by a unanimous vote to maintain Monetary Policy Rate at 13.5% and to hold other policy parameters constant.

“In summary, the MPC voted to retain MPR at 13.5%, to retain asymmetric corridor at +200 and -500 basis points around the MPR, to retain CRR at 22.5% and to retain the liquidity Ratio at 30%”.

CBN Seeks Cooperation Of State Governors In Revamping Economy

A file photo of CBN Governor, Mr Godwin Emefiele.

 

The Central Bank is seeking the cooperation of state governors in revamping the nations economy which has been described as fragile owing to the increasing numbers of unemployment and growing population.

speaking at a meeting with some state governors in Abuja,the governor of the apex bank, Mr Godwin Emefiele explains that addressing the twin problem of unemployment and population explosion can only be achieved through more investment in the nation’s agricultural sector.

READ ALSO: Lawmakers Ask CBN To Suspend New Charges On Transaction

Mr Emefiele appealed to the governors to key into CBN’s policy which is aimed at revamping the agricultural sector through the ten commodities of rice,maize, tomatoes, cotton,cassava,cocoa,palm oil,sorghum,millet yam rubber and the diary sector.

On their part, the governors pledged their support towards making the policy a reality.

Lawmakers Ask CBN To Suspend New Charges On Transaction

 

The House of Representatives on Thursday directed the Central Bank of Nigeria to suspend the new charges placed on Nigerians under its new cashless policy, with immediate effect. 

CBN had announced an increase in charges on withdrawals and deposits exceeding N500,000, however, in a plenary session, the Lower House ordered the apex bank to suspend the policy until appropriate consultations have been concluded.

This was affirmed via a series of tweets on the official Twitter handle of the House of Representatives.

READ ALSO: NEC Approves N100bn For Implementation Of National Livestock Transformation Plan

The tweets read:

CBN Commences Charges On Cash Deposits

FAAC

 

The Central Bank of Nigeria has announced the commencement of charges on deposits in addition to already existing charges on withdrawals.

According to a statement from the CBN, the charges, which takes effect today, September the 18th, will attract 3 percent processing fees for withdrawals and 2 percent processing fees for lodgments of amounts above 500,000 naira for individual accounts.

The statement, however, explains that the charge on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers states as well as the Federal Capital Territory, while the implementation of the cash-less policy will take effect from March the 31st, 2020.

MPC Meeting To Hold Earlier Than Scheduled, Says CBN

A file photo of CBN Governor, Mr Godwin Emefiele.

 

 

The Central Bank of Nigeria (CBN) has rescheduled the Monetary Policy Committee (MPC) meeting for the month of September.

Mr Isaac Okorafor, the Director of Corporate Communications at the apex bank announced this in a statement on Tuesday.

The announcement came a day after the CBN announced that the meeting would hold on September 23 and 24.

READ ALSO: Formation Of Economic Advisory Council Is ‘Timely, Commendable’ – MAN

In the statement released today, Mr Okorafor disclosed that the MPC meeting has been brought forward to September 19 and 20.

He, however, did not give any reason for the bank’s decision.

Read the full statement below:

This is to inform all our stakeholders and the general public that the Monetary Policy Committee (MPC) meeting No. 269, earlier scheduled for Monday, September 23 and Tuesday, September 24, 2019, will now hold on Thursday, September 19 and Friday, September 20, 2019.

All inconveniences caused by this change are highly regretted.

Isaac Okorafor

Director, Corporate Communications

Beware Of Fraudulent Loan Offers, CBN Warns Nigerians

CBN Reviews Capitalisation Of Tier 2 Microfinance Banks

 

The Central Bank of Nigeria (CBN) has warned Nigerians against fraudulent loan offers being circulated across social media platforms.

In a statement issued on Monday, the Director, Corporate Communications, Isaac Okorafor, said while the CBN has several development finance intervention programmes from which different categories of businesses have benefitted, the bank does not do so through direct interaction with prospective applicants.

The bank further stated that there are clearly spelt out procedures for accessing its intervention funds, which are disbursed through Participating Financial Institutions (PFI’s) such as Deposit Money Banks, Development Finance Institutions and Microfinance Banks.

It, therefore, warned members of the public, particularly the youth and owners of small-scale businesses to disregard any message requesting them to send their personal details.

“These messages are fake and anyone who enters into corresponds with them, does so at his or her own risk,” the statement read.

‘Nigerians Don’t Deserve To Suffer’, PDP Asks Buhari To Rescind CBN Directive

 

The Peoples Democratic Party (PDP) has criticised President Muhammadu Buhari’s directive to the Central Bank of Nigeria (CBN) to stop providing foreign exchange for food importation.

In a statement Thursday by its spokesman, Kola Ologbondiyan, the party said the directive was an attempt to stifle food importation in the country.

According to it, such directive is mean, ill-timed and completely against the wellbeing of Nigerians.

The statement said, “The PDP states strongly that Nigerians do not, in any way, deserve such suffering being foisted on them by such directive on food.

“This directive will worsen food scarcity, exacerbate the already harsh economic situation and the general depression, frustration, resentment and despair in our country under President Buhari’s watch.”

“It is indeed appalling that instead of bringing solutions to the depreciating living conditions in our nation, President Buhari is rather imposing more suffering by ordering the removal of subsidy on food even when it is manifestly clear that he had failed on all fronts to achieve any level of food security despite the huge resources available to his administration,” it added.

READ ALSO: Don’t Give A Cent To Anybody To Import Food Into The Country, Buhari Tells CBN

The party said by the directive, the Presidency and the All Progressives Congress (APC) have demonstrated “insensitivity” towards millions of Nigerians.

It added that the people were already suffering “acute hunger and starvation” due to “severe” food shortage and high prices allegedly brought by the present administration.

Such a situation, according to the PDP, will breed further despondency among the citizens and heighten the security challenges in the country.

It also said the directive would put more pressure on compatriots, adding that some were already resorting to suicide and slavery mission as options.

“Instead of removing subsidy on food and putting more suffering on Nigerians, the PDP urges President Buhari to cut the billions of naira being wasted on luxuries in his Presidency and free the funds for the welfare of the masses.

“Furthermore, the PDP urges President Buhari to recover the over N14 trillion siphoned by APC interests under his administration including the stolen N9 trillion detailed in the leaked NNPC memo and channel the resources towards food security for Nigerians,” the opposition party alleged.

The PDP insisted that it was a disservice to Nigerians for the government to place restrictive directives on food for the masses.

It, therefore, asked the President to rescind his directive “before it inflicts more damage on the polity”.

Food Import: There Has Been A Capture Of CBN Politically – Mailafia

Dr Obadiah Mailafia

 

 

The presidential directive to the Central Bank of Nigeria (CBN) on food importation has continued to spark mixed reactions across the country.

Among those who faulted the order recently is a former deputy governor of the apex bank and development economist, Dr Obadiah Mailafia.

The economist who appeared as a guest on Channels Television’s breakfast show, Sunrise Daily, believes the affairs of the CBN are being interfered with, rather than operating as an independent institution.

“There has been a capture of CBN politically; it has no autonomy anymore,” he said in an interview on Thursday.

Mailafia added, “It (CBN) has no independence anymore. It is just an appendage of some people who are using it for whatever purpose that they want.

“It’s like we’ve gone back to the military days where the military will literally bring trailers to the mint and order printing of fresh mints, load them into trailers and drive off with them.”


READ ALSO: Don’t Give A Cent To Anybody To Import Food Into The Country, Buhari Tells CBN

On Tuesday, President Muhammadu Buhari ordered the CBN to stop providing foreign exchange for importation of food into the country.

President Buhari                                                                                        CBN Governor, Godwin Emefiele

 

The President, who hosted the All Progressives Congress (APC) governors to Eid-el-Kabir lunch in Daura, had explained that the directive was important considering the “steady improvement” in agricultural production and attainment of “full food security” in Nigeria.

He stressed that the foreign reserve would be conserved and utilised strictly for diversification of the economy, and not for encouraging more dependence on foreign food import bills.

But the President’s directive to the apex bank had been criticised by economic experts and other Nigerians, including a former CBN deputy governor – Professor Kingsley Moghalu.


‘Thoughtless Thought’


On his part, Mailafia aligned himself with the position of the critics of the presidential directive, saying he was disappointed.

He described the order as ‘thoughtless’, saying certain procedure must be followed before making critical decisions relating to a nation’s economy.

The former CBN governor also insisted that the country has yet to attain the level of food sufficiency that could warrant such an order.

“We can never be more primitive in riding an economy. It is not only primitive, it is backward, completely backward thinking and we are not self-sufficient in food; that is very wrong,” he said.

Mailafia added, “I wish there was any thinking here; there’s been no thinking whatsoever.

“It’s thoughtless thought; you don’t run policy on a web, you run policy based on a technical and scientific understanding of the situation at hand and then, you put together a technical paper working out the various scenarios for every alternative cause of action.”

Food Import: Moghalu Faults Buhari’s Directive To CBN

Professor Kingsley Moghalu

 

The presidential candidate of the Young Progressives Congress (YPP) in the 2019 general elections, Professor Kingsley Moghalu, has criticised the presidential ban on providing foreign exchange for the importation of food into the country.

Professor Moghalu faulted President Muhammadu Buhari’s directive to the Central Bank of Nigeria (CBN) during an interview on Wednesday.

“The Central Bank does not require the formal and explicit approval of the President in order to perform its job,” said the former CBN deputy governor on Channels Television’s Politics Today.

He added, “That is another way of saying that the President himself or any political authority outside the bank should not be giving the bank direct instructions.”

READ ALSO: Don’t Give A Cent To Anybody To Import Food Into The Country, Buhari Tells CBN

President Buhari had said the directive was important considering the “steady improvement” in agricultural production and attainment of “full food security” in Nigeria.

But Moghalu, who cited Article 1 of the CBN Act (2007), stated that the apex bank has been mandated to be independent in the discharge of its responsibilities.

He, however, noted that the President can act exercise his powers by approving on three key areas of the financial institution.

The economist said further, “This is a fundamental principle of central banking around the world over the last four decades. There are only three instances in the operations of the Central Bank where the Central Bank requires the direct approval of the President.

“First is the approval of the annual account of the Central Bank. The President must approve it. Second is the approval of currency designs.”

“For the Central Bank to issue the coin of the realm as we say (naira notes), the President has to approve those designs and proposals.

“Thirdly, any external investment by the Central Bank itself as an institution has to be approved by the President. Outside of these three specific instances, the Central Bank does not require the approval of the President in order to perform its job,” he said.

Don’t Give A Cent To Anybody To Import Food Into The Country, Buhari Tells CBN

 

President Muhammadu Buhari has directed the Central Bank of Nigeria (CBN) to stop providing foreign exchange for importation of food into the country.

He disclosed this on Tuesday when he hosted the All Progressives Congress (APC) governors to Eid-el-Kabir lunch at his country home in Daura, Katsina State.

The President explained that the directive was important considering the “steady improvement” in agricultural production and attainment of “full food security” in Nigeria.

He, however, noted that the foreign reserve would be conserved and utilised strictly for diversification of the economy, and not for encouraging more dependence on foreign food import bills.

“Don’t give a cent to anybody to import food into the country,” President Buhari was quoted as saying in a statement by his Senior Special Assistant on Media and Publicity, Mr Garba Shehu.

He added, “We have achieved food security, and for physical security, we are not doing badly.”

The President said some states like Kebbi, Ogun, Lagos, Jigawa, Ebonyi and Kano had already taken advantage of the Federal Government’s policy on agriculture with huge returns in rice farming.

He, therefore, urged more states to plug into the ongoing revolution to feed the nation.

President Buhari said he was particularly delighted that young Nigerians, including graduates, had started exploring agric-business and entrepreneurship, with many posting testimonies of good returns on their investments.

He told his guests that the incoming ministers would be “taught” and thoroughly guided to ensure they meet the targets of the APC-led government for the people.

The President added that the Office of the Secretary to the Government of the Federation (OSGF) would monitor the performances and scale-up targets of the prospective cabinet members.

He gave assurance that he would attend the Presidential Policy Retreat organised for the ministers by the OSFG, while insisting on compliance with laid down targets on key sectors of the economy that would directly impact on the livelihood of Nigerians.

In his remarks, the Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Kayode Fayemi, said the President’s sense of justice, fairness and forthrightness had turned a major inspiration to governors on the way forward for the country.

He noted that the challenges faced by states “were enormous”, but the governors had remained undaunted, assuring the President of strong support and “the very best effort” to overcome all the obstacles.

The Chairman of the Progressive Governors Forum and Governor of Kebbi State, Atiku Bagudu, also appreciated the President for the unique leadership style of maintaining a healthy relationship with governors on individual and collective basis, pointing out that they had been “energised” to do more in their states.

The governor commended the President for making bold and courageous efforts to reposition the economy for majority Nigerians through inclusive policies.

“The country is more secure than in 2015, and the country is more prosperous than in 2015 because you are working for the majority of the people,” he added.

The governor said the party had been repositioned, after the 2019 elections, to work for the benefit of many Nigerians.

“There will be two elections this year and we need to work towards winning the two states,” he said.

Manufacturing PMI Index Grows To 57.6 Points In July – CBN

CBN Reviews Capitalisation Of Tier 2 Microfinance Banks

 

The Manufacturing PMI in the month of July stood at 57.6 index points, the Central Bank of Nigeria (CBN) has said.

It made the disclosure in a report entitled “Purchasing Managers’ Index (PMI) July 2019 Report” published on Wednesday.

The apex bank said the growth indicated expansion in the manufacturing sector for the “28th consecutive month”.

It noted that the index grew at a faster rate when compared to the index in the previous month.

READ ALSO: 15 Killed In Niger Boat Accident

Of the 14 subsectors surveyed, the CBN said 13 reported growth in the review month, including the petroleum and coal products, transportation equipment, cement, printing and related support activities, and paper products.

Others are food, beverage and tobacco products; furniture and related products, fabricated metal products, non-metallic mineral products, plastics and rubber products, primary metal, chemical and pharmaceutical products, as well as electrical equipment.

However, the textile, apparel, leather and footwear subsector recorded a decline in the review period.

The financial regulator revealed that at 58.9 points, the production level index for the manufacturing sector grew for the 29th consecutive month in July.

According to it, the index indicates a slower growth in the month, when compared to its level in the month of June.

“Twelve of the 14 manufacturing subsectors recorded increased production level, while two recorded decline,” it said.

Similarly, the employment level index of the sector stood at 57.3 points in July, indicating growth for the 27th consecutive month.

The report said, “Of the 14 subsectors, 10 reported increased employment level, one reported unchanged employment level while three reported decreased employment in the review month.”

The apex bank explained that the July 2019 PMI survey was conducted by the Statistics Department of the CBN between July 8 and 12.

It said the respondents were purchasing and supply executives of manufacturing and non-manufacturing organisations in all 36 states and the Federal Capital Territory (FCT).

The bank said it made no representation regarding the individual companies, other than the information they have provided.