Tag: CBN

The Central Bank of Nigeria (CBN) shows no sign of scaling down its intervention in the real sector of the economy despite concerns in some quarters that this might be encouraging the fiscal authorities not to take their responsibilities as seriously as they should, writes Tony Chukwunyem.   In the wake of his reappointment  for a second term  in office,  Governor  of  the Central  Bank  of  Nigeria [CBN), Mr. Godwin  Emefiele,  at a press conference in June last year, unveiled his five-year policy direction for the apex bank. Among other…

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Apart from representing a threat to inflation, excess liquidity in the system as well as Federal Government’s large fiscal deficits also pose a real risk to the stability of naira exchange rate, members of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) have said. According to personal statements of the MPC members at their meetings last month released by the CBN yesterday, the   worry about   liquidity surfeit and government’s fiscal deficits made most of the committee members vote to raise the Cash Reserve Ratio (CRR) from…

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Despite the significant increase in deposit money banks (DMBs’) investment in information technology (IT) and electronic payment channels over the years, bank customers still frequently experience banking IT outages, writes Tony Chukwunyem   If data obtained from the Nigeria Interbank Settlement System (NIBSS) is anything to go by, deposit money banks (DMBs) in the country have clearly made huge investments in their information technology (IT) systems and electronic payment channels over the last few years. Surge in number of PoS terminals For instance, according to the electronic-payment fact sheet for…

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The decision by the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) to increase the Cash Reserve Ratio (CRR) by 500bps to 27.5per cent, could put pressure on Deposit Money Banks’ (DMBs) liquidity thereby increasing their cost of funds, analysts at CardinalStone Research have said. At the end of the two-day meeting of the MPC last Friday, the CBN, citing the need to curtail the growing threat of inflation to the economy, increased the CRR of lenders by 500 basis points to 27.5 per cent from 22.5 per cent.…

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The continuous slump in Treasury Bill (T-Bill) yields,  occasioned by Central Bank of Nigeria’s (CBN) barring of individuals and non-bank corporates from  its Open Market Operations (OMO) auctions is giving retail investors sleepless nights, findings by New Telegraph have shown. As part of its efforts to get banks increase lending to the real sector,   the CBN had in July last year  directed  all lenders to maintain a minimum  Loan to Deposit Ratio (LDR) of 60 per cent by September 30, 2019. Following the expiration of that deadline and its…

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Although the uptrend in Nigeria’s Gross Domestic Product (GDP) growth continued in 2019,  the sluggish pace of economic growth was a cause for worry in financial circles throughout the year and heightened calls from organisations such as the International Monetary Fund (IMF) and the World Bank. For  government to urgently carry out reforms, writes Tony Chukwunyem     First quarter Given that analysts had generally predicted that the uncertainty created by the presidential election, held during the period, would negatively impact the country’s economy, the release of Q1’19 economic data…

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To arrest financial leakage and corruption prevalent across MDAs, the Federal Government recently unveiled open treasury porter. The porter is dedicated to  publishing  revenue and expenditures  of MDAs daily for public glare. In this report, Abdulwahab Isa explores how far the the project would help     The biggest challenge facing governments is absence of transparency in handling public funds by officials. Regardless of  government’s efforts, aided by  policies designed to promote  transparent dealings in government funds, public sector personnel cleverly  find  ways  around  every policy  by   rendering them…

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