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CBN committed to stability in financial system, job creation- Emefiele

Stability

By Kadiri Abdulrahman

Abuja, Dec. 12, 2022 (NAN)The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, says the apex bank is committed to ensuring financial system stability and improving access to credit.

Emefiele spoke in a recorded address to the 2022 edition of the apex bank’s Development Finance Department (DFD) Retreat in Abuja on Monday.

The News Agency of Nigeria (NAN) reports that the theme of the retreat was “Financing for Sustainable Development in Nigeria.

The CBN governor said that the CBN had introduced several policies to improve access to credit for Micro, Small and Medium Enterprises (MSMEs) over the last few years, deepen support to the real sector and build a robust system infrastructure.

According to him, the CBN has taken steps to intervene in the Nigerian economy beyond the traditional macroeconomic mandate of ensuring financial system stability and maintaining strong reserves.

“It is clear in my mind that posterity will judge us for all actions taken to bridge the gaps through our interventions

“Those interventions are hinged at supporting economic activities, speeding up diversification of the production base and enabling infrastructural development in Nigeria,” he said.

He commended the staff of the DFD for their commitment and patriotism.

“Also speaking, the Governor of Jigawa, Muhammed Badaru, said that the sub-national governments had every reason to be thankful to the CBN and the DFD for efforts their support.

“We from the states have seen practical efforts by the DFD. Many states have testimonies of how the DFD has supported the states.

“In Jigawa, with the suppprt of the CBN, we have been able to move rice production from 92, 000 metric tonnes per annum in 2015 to 1,050,000 metric tonnes per annum in 2021.

“We were able to move rice processing factories from one to seven, and thousands of rice mills.

“And, together with other policies, we were able to move our Gross Domestic Product (GDP) from one trillion Naira in 2015 to N2.25trillion in 2021,” he said.

Also speaking, Gov. Atiku Bagudu of Kebbi, said that for a growing nation, development finance was one of the most important functions of the central bank.

According to him, this has been demonstrated in the last seven years by the CBN.

“The development finance function is essentially a national security function, because it deals with the failures of externalities and all other challenges brought to bear by dislocations in the international community ” he said.

Mr Yila Yusuf, Director, DFD, said that the department had been at the forefront of food security for Nigeria in recent times, through a plethora of programmes and initiatives led by Emefiele.

Yusuf said that the country offered good opportunities for growth.

He added that the task of enabling food security, stimulating finance to the real sector and catalysing towards inclusive economic growth required serious efforts.

“The CBN has been at the forefront to ensure that we achieve food security and stimulate growth, in collaboration with other fiscal authorities.

“The DFD has also been fighting to reduce Nigeria’s reliance on food import and reduce the draining of our foreign exchange.

“The department has taken steps to stem imported inflation stimulate local production and diversify the economy away from oil to the real sector,” he said. (NAN)(www.nannews.ng)

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edited by Sadiya Hamza

Ajaokuta
By Kadiri Abdulrahman
Abuja , Dec. 8, 2022 (NAN)The Minister of Mines and Steel Development, Mr Olamilekan Adegbite, says 11 companies are presently involved in the concession bid for Ajaokuta Steel Company.

Adegbite made this known on Thursday in Abuja at the presentation of the achievement of his ministry during the 9th edition of PMB Scorecard series, organised by the Ministry of Information and Culture.

The minister said that the Buhari government had been able to resolve all contending legal issues with the steel company and was in the process of concessioning it to a competent bidder.

He said that the major issue with the company was the concession that was done in 2005 by President Olusegun Obasanjo to Global Steel, which resulted in litigation and a demand of seven billion dollars by Global Steel.

“One of the major albatross on Ajaokuta was the concession that occurred under President Olusegun Obasanjo to Messers Global Steel Industries.

“Things went sour and they took us to court. The court case went on for about 12 years, but thanks to a patriotic Nigerian lawyer in the UK who handled the case very effectively.

“Global Steel came with a demand of seven billion dollars, but our lawyer was able to puncture holes in their case and at the end, they had to settle for 496 million dollars,'” he said.

He said that the judgement was favourable to Nigerian.

According to the minister, the Muhammadu Buhari government had plans to make Ajaokuta Steel Company functional before the end of 2022, but for the outbreak of COVID-19 pandemic.

He, however, said that the government was still committed to ensuring that the company was concession to a competent bidder with technical and financial capacities to optimise its potential.

“We were supposed to make the plant work in 2022. One of the presidential mandates was to resolve all contending issues on Ajaokuta.

“In 2019, at the Russian-Africa summit in Moscow, President Muhammadu Buhari discussed the idea of resuscitating Ajaokuta with President Vladimir Putin.

“An agreement was reached for Russian engineers to come in for a technical audit by March 2020.

“But the emergence of the first and second waves of COVID-19 stalled the plan.

“We hope that we can give Ajaokuta to a company, not just on concession basis, but on equity participation,” he said.

He said that out of the 11 companies bidding, three were Russian.

“We are talking of companies who intend to bring their own monies into Ajaokuta to make sure that it works.

“The plant is still good if we put in the right amount of capital, it will start producing in less than two years.

“Government has employed a transaction adviser who will guide us through the process, ” he said. (NAN)(www.nannews.ng)
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Edited by Grace Yussuf

DMO issues 2 FGN savings bonds at N1,000 per unit

Bonds

By Kadiri Abdulrahman

Abuja, Dec. .7, 2022 (NAN)The Debt Management Office (DMO) has announced its Dec. issuance of two Federal Government of Nigeria (FGN) Savings Bonds at N1,000 per unit.

According to a statement by the DMO, the first offer is a two-year FGN Savings Bond due in Dec. 14, 2022, at an interest rate of 12.255 per cent per annum.

The second one is a three-year FGN Savings Bond due in Dec. 14, 2025 at 13.255 per cent interest rate per annum.

It said that the opening date for the bonds issuance is Dec.5, closing date is Dec. 9, settlement date, Dec. 14 while coupon payment dates are March 14, June 14, Sept. 14 and Dec. 14.

“They are issued at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50million.

“Interest is payable quarterly, while bullet repayment is made in the maturity date, ” it said.

It added that FGN savings bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other Investors.

“They are listed on the Nigerian Stock Exchange and qualify as liquid asset for liquidity ratio calculation for banks,” it said.

The statement added that they were backed by the full faith and credit of the Federal Government of Nigeria, and charged upon the general assets of the country. (NAN)(www.nannews.ng)

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Edited by Bashir Rabe Mani

LAPO wins best financially inclusive MfB of the year

MfB

By Kadiri Abdulrahman

Abuja, Nov. 27, 2022 (NAN) LAPO Microfinance Bank Limited ( LAPO MfB), a premium microfinance institution in Nigeria, has won “The Best Financially Inclusive MfB of the Year “ 2022 award.

The award was presented to the bank at the maiden International Financial Inclusion Conference, organised by the National Financial Inclusion Steering Committee (NFIS) supervised by the Central Bank of Nigeria (CBN).

The News Agency of Nigeria (NAN) reports that the conference was a convergence of critical stakeholders –  regulators, operators, policy analysts and government functionaries.

The aim was to examine the opportunities, challenges and proffer solutions to the snags along the nation’s financial inclusion objectives.

Cynthia Ikponmwosa, Managing Director, LAPO MfB, in a statement, expressed the bank’s gladness and appreciation for winning the award.

“ We appreciate the NIFS, organisers of this conference and the CBN for this recognition and award.

” it is a validation of LAPO’s immense impact on financial inclusion through the consistent delivery of innovative financial products and services to the last man in the last mile across Nigeria,” she said.

She added that LAPO MfB remained committed to its over 30 years mandate of provision of social and economic support to members of low-income households and owners of micro small and medium enterprises. (NAN)(www.nannews.ng)

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Edited by Idris Abdulrahman

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Flooding: CBN to deploy strategic grains reserve to check food inflation

Reserve

By Kadiri Abdulrahman

Abuja, Nov. 22, 2022 (NAN)The Governor of the Central Bank of Nigeria (CBN) Mr Godwin Emefiele, says the apex bank will fall back on its strategic grains reserve to check food inflation.

Speaking to newsmen in Abuja on Tuesday, Emefiele said the idea was to moderate food prices that could be occasioned by recent flooding across the country.

“The flooding of this year happens to be the worst in the last five years in Nigeria. 32 out of the 36 states of the country were affected adversely by the floods.

“This meant that farmers lost their crops, prices of food and other agricultural produce will go up.

“From our side at the CBN and the Federal Government, we have our own strategic reserve, particularly for rice and for grains like maize, which we will use to moderate prices,” he said.

He said the apex bank had been maintaining the strategic reserve for the past three years, adding that it was yielding results.

He said the CBN would also support dry season farming to further check food inflation.

“Since the flooding is beginning to recede, we will aggressively go into dry season programme.

“This will make sure that the impact of the rising food prices does not linger for too long, so that we can have control of prices of agricultural produce and other consumer goods,” he said.(NAN) (www.nannews.ng)

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Edited by Salif Atojoko

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MPR

By Kadiri Abdulrahman

Abuja, Nov. 22, 2022 (NAN) The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), on Tuesday increased the country’s Monetary Policy Rate (MPR) by 100 basis points to 16.5 per cent from 15.5 per cent.

Announcing the committee’s decision at the end of its two-day meeting on Tuesday, the CBN Governor, Mr Godwin Emefiele, said the MPC also decided to hold all other parameters constant.

The Assymetric Corridor of +100/-700 basis points around the MPR was, thus, retained, the Cash Reserve Ratio (CRR) was retained at 32.5 per cent and Liquidity Ratio of 30 per cent was also retained.

According to Emefiele, 11 members of the MPC present at the meeting unanimously voted for rates increase.

“Nine members voted to raise the MPR by 100 basis points, while two members voted to raise rates by 50 basis points,” he said.

Emefiele said in reaching the decision on its policy stance, the MPC felt that all the causative factors in the economy, like the Russian-Ukraine war and supply chain disruption were still dominant.

“Loosening option was not desirable at this meeting. The committee also felt that, with the rising inflation, loosening the stance of policy will lead to more aggressive rise in inflation.

“As regards whether to hold, the MPC was of the view that doing that close to December festive season and expected heavy spending during the 2023 general election would jeopardise the gains of previous policy rates tightening.

“It would plunge the economy deeper into the inflation trap,” he said.

He added that the MPC decided to continue tightening, though, at a somewhat moderated rate.

“At this meeting, the options considered were whether to hold or further tighten policy rates.

“The option to loosen was not considered as this will greatly undermine the gains of the three previous decisions,” he said.

The News Agency of Nigeria (NAN) reports that the MPC had increased the MPR by 150 basis points, from 14 per cent to 15.5 percent in its last meeting in September.

It had earlier increased the MPR by 100 basis points, from 13 per cent to 14 per cent in July. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

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Borrowings

By Kadiri Abdulrahman

Abuja, Nov. 17, 2022 (NAN) The Debt Management Office (DMO) says there is urgent need for the Federal Government to moderate the rising trend of borrowings to ensure debt sustainability.

The Director-General of DMO, Patience Oniha, said this on Thursday in Abuja, at a Workshop for legislators.

The workshop was organised for members of the Senate Committee on Local and Foreign Debts and the House of Representatives Committee on Aids, Loans and Debt Management.

Oniha urged the Federal Government to take steps to rationalise expenditure, accelerate growth in revenues and ensure that borrowings were tied to projects that generated commensurate revenue to service the loans.

According to her, the outlook shows that local and international markets are becoming tighter and interest rates are rising.

“Thus, priority should be less on borrowing and more on revenue from oil and non-oil sources.

“Nigeria’s public debt stock has grown consistently over the past decades and even faster in recent years. Consequently, debt service has continued to grow.

“Nigeria’s low revenue base, compounded by dependence on crude oil, resulted in deficits over the past decades,” she said.

She, however, added that efforts at increasing non-oil revenue were yielding positive results.

Oniha said the government borrowings were usually obtained for the purposes of financing budget deficits; financing specific projects or activities, and to refinance maturing debt obligations.

She said the processes of obtaining loans by the government were guided by the annual budgets and Medium Term Expenditure Framework, and the Medium Term External Borrowing Plan.

She added that there were also “Stand-alone requests” from Ministries, Departments and Agencies (MDAs), routed through the Ministry of Finance Budget and National Planning.

She said the country’s total public debt stock as at June was N42.8 trillion, comprising N26.2 trillion domestic and N16.6 trillion external debt stocks.

She added that the Debt to Gross Domestic Product (GDP) ratio was 23.06 per cent, while growth in total debt stock between 2021 and June was 8.08 per cent.

“At this level, the Debt to GDP ratio is still within Nigeria’s self- imposed limit of 40 per cent.

“It is also within the World Bank/IMF recommended limit of 55 per cent for countries within Nigeria’s peer group and 70 per cent for ECOWAS countries,” she said.

She, however, said the total public debt stock comprised the external and domestic debts of the Federal Government, the 36 state governments and the Federal Capital Territory.

On the loans from China, Oniha said they amounted to N3.6 billion dollars, constituting about 3.6 per cent of the country’s external debt.

“The good thing is that Chinese loans are concessional. It is not our dominant source of funding.

“It is actually small but it finances infrastructure, which is a good thing,” she said.

The Chairman, Senate Committee on Local and Foreign Debts, Sen. Clifford Ordia, commended the DMO for its efficient management of the country’s debt.

Ordia said debt sustainability was an issue of concern, due to low revenue, adding that urgent steps should be taken to boost revenues.

“We all came here today to deepen our capacity in debt management. Nigeria’s Debt to GDP ratio has been eliciting concern around debt sustainability.

“The important issue here is revenue growth to moderate the need for further borrowings, and for the DMO to fulfill its mandate of managing the debt effectively,” he said.

He advised the Federal Government to observe a sense of propriety in implementation of projects.

The News Agency of Nigeria reports that lawmakers were, however, unanimous on the need for the Federal Government to diversify its sources of revenue to solid minerals and other non-oil sources. (NAN)(www.nannews.ng)

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Edited by Salif Atojoko

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FG working to legalise artisanal mining- Minister

Management

By Kadiri Abdulrahman

Abuja, Nov. 1, 2022 (NAN) The Minister of Mines and Steel Development, Mr Olamilekan Adegbite, says the Federal Government is working to mainstream activities of artisanal miners into the legal system for effective management.

Adegbite said this on Tuesday in Abuja at the opening ceremony of the 2022 Nigeria Mining Week.

According to him, artisanal miners form an important constituent of the mining sector.

“They operate outside the constituted legal system and their operations are inimical to the environment and economy of the nation.

“Government is therefore determined to mainstream this class of miners into the legal system for effective management.

“The ministry is working with experienced professionals to scale up its knowledge of formalisation techniques and build up its ability on real time data collection of artisanal mining sites in the country.

“This is to aid their formalisation into mining co-operatives and mineral enterprises.

“Extension services will be provided by the ministry in all aspects of the value chain to ensure adequate management and sustainability,” he said.

The minister said that the ministry was also taking steps to ensure that mining activities were not inimical to the environment by improving the Environmental impact.

“Environmental impact is critical in sustainable mineral development.

“Government has maintained a consistent environmental surveillance and green mining practices to ensure minimum damage to the environment.

“The Mineral Resources and Environmental Management Committee (MIREMCO) have been strengthened and the ministry is keeping constant dialogue with committees in almost all the states of the country,'” he said.

He said that the ministry had intensified efforts in revamping the Ajaokuta Steel Company and the Iron Ore Mining Company in Itakpe.

According to him, the assets of the two companies have been secured and freed from all legal encumbrances.

He said that a transaction adviser had been appointed to conduct a professional and transparent concessioning of the two firms.

He added that the National Steel Council had also been constituted and inaugurated as an integral stakeholder in the development of the steel industry.

“The results of our endeavor are encouraging.

“Thor Exploration Limited commissioned their world class Segilola Gold Mine in December, 2021, and the firm has produced 85,000 ounces of gold to date. Kursi Investment Limited is rapidly developing its gold asset in Kwara.

“Eta Zuma Mining and Industries Limited and the Mosra Enerji are mining and supplying the coal needs of Dangote and Bua Cement works.

“Several firms are at their end stage mine development,” he said.

Adegbite said that government revenues from the sector increased from N2billion in 2015 to over N7billion in 2021, indicating a major increase in mining activities in the field.

“We shall intensify our efforts to work to make our mining sector more competitive in the global mining space and to satisfy the needs of our domestic and global goals.

“We shall prioritise the development of critical minerals required in clean energy transition and reduction in green house emission to zero, ” he said.

The Acting President, Miners Association of Nigeria, Alhaji Musa Muhammad, said that the platform of the Nigeria Mining Week had been utilised over the years to do wholesome critique of the national mining ecosystem.

According to Muhammad, in spite of some unresolved legacy challenges and new ones emerging, there are quite some notable developmental strides being driven by the regulatory ministry and its agencies.

He listed appreciable increase in sectoral contributions to the GDP as one of such developments.

“Increased interest of foreign investors due to the verifiable geological data being generated by the National Integrated Mineral Exploration Project (NIMEP), of the Nigeria Geological Survey Agency.

“Digitalisation of mineral titles administration by the Mining Cadastre Office; development of Cluster Buying Centers across the geopolitical zones, standardisation of the Nigerian barite to meet up with global specifications.

“The various conversations emanating from this platform have been incubating the ideas for policy formulation and actions,” he said.

Also speaking, Mr Cyril Azobu, Partnership and Mining Industry Leader, PricewaterhouseCoopers (PwC), said that the Nigeria Mining Week remained a destination of choice for discerning mining companies and investors.

Azobu said that PwC was confident about the potential growth of the Nigerian mining industry.

“In our role as advisors to both public and private sectors, we have helped catalyse and witnessed several companies to successfully exploit the opportunities in the mining ecosystem.

“The industry has continued to grow and record notable achievements over the past seven years of our involvement in organising this forum in collaboration with other stakeholders,” he said.

He commended President Muhammadu Buhari for his vision and drive towards diversifying the Nigerian economy.

“Mr President’s commendable vision and drive towards diversifying Nigeria’s economy is yielding fruits with the mining sector.

“Nigeria’s mining industry is currently attracting a lot of investor attention in exploration because of laudable policies that are helping to de-risk the sector.

“A positive outcome of the NIMEP is the provision of bankable geoscientific data giving investors the confidence to invest.

“As a result, there is traction in drilling and analytical equipment coming into the country, ” he said.

He added that, now was the best time to invest in exploration of Nigeria’s vast and untapped mineral deposits.

He listed available mineral deposits in various parts of the country as gold, bitumen, nickel, chromium, cobalt, rare earth minerals, lead-Zinc, silver, copper, barite and iron ore. (NAN)(www.nannews.ng)

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Edited by Ismail Abdulaziz

Investment

By Kadiri Abdulrahman

Umuahia, Sept. 29, 2022 (NAN) The Debt Management Office (DMO) says FGN Securities provides a rare opportunity for ordinary Nigerians to invest and earn regular income.

Director-General of the DMO, Patience Oniha, said this on Thursday at FGN Securities Issuance Awareness Programme in Umuahia, Abia.

The News Agency of Nigeria (NAN) reports that the awareness programme is a collaborative effort by the DMO and CSL Stockbrokers Ltd., the stockbroking firm of the Federal Government.

Oniha, who was represented by Mr Joe Ugoala, DMO’s Director, Organisational Resources Department, said the risk-free nature of FGN securities made them particularly attractive to the common people.

She urged residents of Umuahia to take full advantage of the opportunity to diversify their investments, while also supporting the Federal Government to raise revenue for infrastructural projects.

She said that investors could access their funds anytime they liked as “government cannot default in payment”.

“FGN securities are backed by the full faith and credit of the Federal Government, and that greatly reduces risk of loss of capital, ” Oniha said.

Earlier, Ifeoma Ukwunna, Lead, Retail Business, CSL Stockbrokers Ltd., said investment in FGN securities would give Nigerians the opportunity to earn passive income from their idle funds.

Ukwunna said that the security instruments provided opportunity for investors to diversify their investment portfolios across asset classes, thereby reducing risk of loss of investment.

“They are very liquid, almost as good as cash, and can be sellable anytime the investor wants, ” she said.

She said particularly, the FGN Savings Bond had incentive for retail investors.

“With as low as N5,000 Nigerians can invest in the FGN savings bond designed to accommodate the common man in the financial market, and encourage financial inclusion, ” she said.

Ukwunna urged interested investors to contact their stockbrokers or banks for further information. (NAN)(www.nannews.ng)

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Edited by Grace Yussuf

Result

By Kadiri Abdulrahman

Umuahia, Sept. 29, 2022 (NAN) A Stockbroker, Ifeoma.Ukwunna says the series of awareness programmes on FGN securities organised by the Debt Management Office (DMO) and CSL Stockbrokers Limited is yielding positive results.

Ukwunna, who is the Lead, Retail Business at CSL said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Umuahia.

She spoke on the sidelines of the ongoing FGN Securities Issuance Awareness Programme in the city.

The News Agency of Nigeria (NAN) reports that the awareness programme, which was first held in Lagos in March, had also held in Enugu, Ibadan, Kano and Yola.

According to Ukwunna, the feedback has been encouraging as retail investors have been showing increasing interest in the security instruments, resulting to increase in the volume of investment.

“This is the sixth in the series, and the feedback has been very encouraging. We have seen more retail investors subscribe to some of the instruments, which were hitherto, the reserve of high-net as well as foreign investors.

“The awareness programmes have opened the door for many more Nigerians to participate, and we are seeing a movement from hundreds of millions of Naira investments to over one billion Naira,’’ she said.

According to her, the need to cover as many parts of Nigeria as possible informed the locations that have been chosen for the programme.

She, however, said that the choice of Umuahia was informed by the huge volume of business that takes place within the axis.

“The idea is to reach all regions of the country, but Umuahia is known as a commercial centre.

“We want to reach the business people and let them know that it is advisable to diversify their investments, that there are other investment opportunities that reduce the risk of loss of capital,’’ she said. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams