VOICE OF THE PEOPLE

Tag: CBN

  • CBN Says Monetary Reforms Yielding Positive Results

    CBN Says Monetary Reforms Yielding Positive Results

    The Central Bank of Nigeria, CBN has said its monetary policy reforms are beginning to have positive effects on the country’s economy.

    Reacting to the just-released inflation rate for October in a statement issued by the Director of the Corporate Communications Department, CBN Isa AbdulMumin, the apex bank vowed to return to evidence-based monetary policy status to restore stakeholders’ confidence in Nigeria’s financial system.

    In October the CBN Governor, Dr Yemi Cardoso, said there was an urgent need for “discontinuation of unorthodox monetary policies and foreign currency management and unorthodox use of ways and means spending”.

    Cardoso added that the economic policy proposals of the administration identify a set of fiscal reforms and growth targets that will achieve $1trn GDP within eight years.

    According to data released by National Bureau of Statistics, NBS figures on Wednesday, inflation accelerated to 27.33 per cent in October, a slight increase from September’s 26.72 per cent.

    The apex bank emphasised that the current inflation rate underscored the gradual influence of the CBN’s money market reforms on the economy.

    He pointed out that the marginal rise in the average price level for October indicated the effectiveness of the CBN’s monetary policy stance and money market reforms in achieving the desired results.

    Highlighting the commitment of the apex bank’s leadership, AbdulMumin stated that efforts are underway to fulfil its core mandate of stabilizing the naira and reducing inflation

  • Old Naira Notes Remain Legal Tender Indefinitely – CBN

    Old Naira Notes Remain Legal Tender Indefinitely – CBN

    The Central Bank of Nigeria, CBN has announced its intention to extend the validity of the old N200, N500, and N1,000 notes indefinitely.

    According to the bank, it is working with the relevant authorities to vacate the subsisting court ruling on the same subject.

    The bank disclosed this in a statement signed by the Director, Corporate Communications, Isa AbdulMumin, on Tuesday.

    He enjoined the general public to continue to accept all Naira banknotes, old or redesigned for day-to-day transactions and to handle the banknotes with utmost care, to safeguard and protect the lifecycle of the banknotes.

    He also enciuraged the general public to embrace alternative modes of payment, e-channels, for day-to-day transactions.

  • Tackle High Inflation, Sanusi Tells CBN

    Tackle High Inflation, Sanusi Tells CBN

    A former Governor of the Central Bank of Nigeria, CBN Lamido Sanusi, has advised the incumbent governor of the apex bank, Olayemi Cardoso, to adopt strategic measures that will drive down the rate of inflation in the country.

    In a statement on Sunday, the former Emir of Kano gave this advice last week, in Abuja, when he led the Impact Investing Community team to the CBN headquarters.

    Inflation has continued to accelerate in recent months and is currently at 26.72 per cent as of September 2023.

    Sanusi urged the new leadership at the CBN to work persistently to drive down the inflation rate, adding that it was negatively affecting individual wealth.

    He also acknowledged the importance of long-term planning by the CBN in achieving its goals.

    The ex-CBN boss emphasised on the need for the fiscal authorities to focus on agriculture and education, especially for the girl-child.

    He explained that the Bank’s activities have a massive impact on the lives of Nigerians and many people often do not know the impact of a Central Bank’s works until a Central Bank fails.

    He urged the new leadership at the CBN to work persistently at driving down the rate, which had severely impacted the wealth of individuals.

    Earlier, Cardoso had promised that under his leadership, the bank will focus mainly on the core mandate of price stability.

    He maintained that his team was determined to change the narrative about the bank and make the apex bank more impactful in the lives of Nigerians by curtailing inflation.

    Speaking further, Cardoso thanked the Impact Investing Community for visiting the CBN, noting that the community represented an excellent future for Nigeria with the potential to transform the country’s economy by tapping into the investment opportunities available across the country and the world.

    While commending the quality of leadership at Impact Investing Community and its effort in creating awareness as well as building partnerships, Cardoso assured the gathering that the bank would collaborate with them in the direction of putting in place frameworks that will encourage investments that will positively influence the lives of Nigerians and contribute to economic growth.

    Also speaking, the Chairperson of Impact Investing, Mrs. Ibukun Awosika, said they were at the CBN to register their willingness to support what the bank and the Federal Government were doing in terms of changing Nigeria’s investment climate by redirecting resources to areas where they will make the most positive impact.

  • FG Oil Revenue Down by 36% in May, Says CBN

    FG Oil Revenue Down by 36% in May, Says CBN

    The Federal Government’s oil revenue target for May has dropped from N804bn to N223bn, representing about 72 per cent reduction in federal earnings; this is according to  Statistics from the Central Bank of Nigeria’s Monthly Economic Report for May 2023.

    According to the report; “oil revenue at N223bn for May was 36 per cent below receipts in the preceding month and below the monthly target of N804bn”.

    The observed shortfall in oil revenue, according to CBN; was driven mainly by lower receipts from Petroleum Profit Tax and Royalties.

    Gross federation earnings dropped as a result of lower oil and non-oil receipts, the report added.

    At a total of N837bn, federation revenue was lower than the level in April by 16 per cent, and the budget by 53 per cent.

    In terms of contribution, the report said non-oil revenue sources continued to dominate, accounting for 73.4 per cent of federation revenue in the review period.

    At N614bn, non-oil receipt was 5.4 per cent less than the level in April, and 36 per cent below target.

    The shortfall was largely attributed to lower collections from Company Income Tax, Value Added Tax, and Customs & Excise Duties, reflecting seasonality in the filing of tax returns by businesses in Nigeria.

    The CBN report comes on the heels of a similar report by Reuters; that the United States waterborne imports of crude from the Organization of the Petroleum Exporting Countries and its non-OPEC partners, dropped steadily over the last year, further tightening supplies in the U.S. while supporting other markets including Europe.

  • Relief for Nigeria as CBN Begins to Clear FX Backlog.

    Relief for Nigeria as CBN Begins to Clear FX Backlog.

    The Central Bank of Nigeria (CBN)  has delivered over 75 percent to 80 percent of outstanding matured FX forwards in banks.

    According to a source exclusive to Business Day, only international banks have been settled which include Citi Bank, Standard Chartered and Stanbic IBTC.

  • CBN Special Investigator, Obazee Submits Interim Report to Tinubu

    CBN Special Investigator, Obazee Submits Interim Report to Tinubu

    The Special Investigator appointed to probe the activities of the Central Bank of Nigeria, CBN, Jim Obazee, has reportedly submitted an interim report to President Bola Tinubu.

    You will recall that President Tinubu had on July 28, 2023, appointed Obazee, a former Chief Executive Officer of the Financial Reporting Council of Nigeria, as the Special Investigator to probe the activities of the apex bank under its suspended governor, Godwin Emefiele.

    In the letter, which he personally signed, the President said the move was in continuation of the government’s anti-corruption fight and urged Obazee to work with relevant security and anti-corruption agencies to deliver the assignment.

    Aside from the CBN, Obazee is also investigating the Nigerian National Petroleum Corporation Limited, NNPCL and other Government Business Entities using a suitably experienced, competent and capable team.

    However, sources in the presidency told The Punch on the condition of anonymity that the preliminary report was submitted for necessary action by the President.

    The source said the interim report led to the change of leadership at the CBN and would enable the president to make some key decisions that would help the country move forward.

    The official added that the president and his team are currently reviewing the report with a view to taking an appropriate decision on it soon.

    The Chief Executive Officers and top management staff of banks may also be probed during the ongoing investigation of the activities of the Central Bank of Nigeria.

    Punch Newspaper reports some bank CEOs would be invited in an effort to ascertain any discrepancies around the management of intervention funds by deposit money banks.

    The PUNCH had earlier reported that the Central Bank of Nigeria may be asked to withdraw its audited annual financial reports, which were recently released.

    This came after a team investigating the apex bank discovered discrepancies and irregularities in the financial accounts.

    Aside from the CBN, the special investigator is also investigating the NNPCL, FRC, and other Government Business Entities.

  • CBN Reveals Money Supply Declined by 0.56% in August

    CBN Reveals Money Supply Declined by 0.56% in August

    Money supply, M1, also known as narrow money, declined by 0.56 percent to N24.02 trillion in August 2023 from N24.16 trillion in July.

    M1 money supply includes currency in circulation and money in deposit accounts that can easily be turned into cash.

    Data from the Central Bank of Nigeria, CBN showed that money supply fell marginally by 0.03 percent to N65.45 trillion in the month under review compared to N65.47 trillion in the previous month.

    Speaking on the situation, Yemi Kale, partner & chief economist, KPMG Nigeria, said the decline is too immaterial to make any sense of it and might just be a normal part of economic activities.

  • CBN Monetary Policy: Tetfund to Suspend Foreign Scholarships.

    CBN Monetary Policy: Tetfund to Suspend Foreign Scholarships.

    The Tertiary Education Trust Fund (TETFund) has said that the recent Central Bank of Nigeria (CBN) policy had created difficulties in the payment of foreign scholarship tuition fees and stipends.

    Sonny Echono, the executive secretary, TETFund, made this known at a One-Day Stakeholders’ Engagement on Emerging Issues with the TETFund Intervention in Abuja on Wednesday.

    Echono said since the funds’ allocation was barely enough to service programmes under its Tertiary Scholarship for Academic Staff (TSAS), the fund was considering suspending foreign scholarships while also considering an upward review of local scholarships.

    The executive secretary noted that the fund recently signed several MoUs with some prestigious institutions overseas that include universities in Malaysia, India, Brazil, France and the United States with a view to boosting and enhancing the TSAS programme in the future.

    Chris Maiyaki, the acting executive secretary of the National Universities Commission (NUC), called on the need to develop new strategies for funding while ensuring sensitivity to the evolving challenging dynamics through qualitative funding.