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CBN Says Recapitalization Policy Strengthened Financial Position Of Banks

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…as macroeconomic performance projection indicate 3.2%, 3.3% growth rate for 2024, 2025 respectively
By Gloria Ikibah
The Governor of Central Bank of Nigeria (CBN), Yemi Cardoso, has highlighted plans of the Apex bank to address the spiralling inflation in the country.
Cardoso also said the Bank’s recapitalization policy has prompted banks to strengthen their financial positions, a process which he said was expected to result in a more robust and resilient banking sector by March 2026.
The CBN Governor who stated this while addressing the House of Representatives Committee on Banking, on the on policy measures and strategies to address domestic macroeconomic challenges.
The exercise, according to him, is expected to support the realisation of $1 trillion economy by the year 2030.
On the macroeconomic performance in 2024, he said projections indicates a growth rate of 3.2% and 3.3% for 2024 and 2025 respectively, and that Nigeria is projected to maintain a more robust 4.3% growth rate.
Cardoso said the non-oil sector maintained strong performance, contributing 94.30% to GDP with a steady 2.80% growth rate.
He added that the oil sector’s growth rate has almost doubled to 10.15% in Q2, 2024 from 5.70% in Q1, 2024, due mainly to improved security surveillance which resulted in increased production of crude oil and natural gas.
He said the Services sector continues to be the primary economic driver, contributing 58.76% to GDP with a robust growth rate of 3.79%.
Similarly, he said the Industrial sector has shown remarkable improvement, with its growth rate surging to 3.53% from 0.31%.
He pointed out that the contribution of agriculture to total GDP also increased, in addition, the growth rate of the sector rose to 1.41%, from a negative territory of -0.90%, indicating a substantial turnaround in productivity.
He also said the foreign exchange reserves have grown significantly, with remittance flows currently representing 9.4 per cent of total external reserves.
The CBN Governor further stated that the reserves grew by 12.74% to US$39.12 billion as of October 11, 2024, from US$34.70 billion at end-June 2024, driven largely by foreign capital inflows, receipts from crude oil related taxes and third-party.
“In Q2 2024, we maintained a current account surplus and saw remarkable improvements in our trade balance”, he said.
Cardoso further explained that the current external reserve position is able to finance over 12 months of import of goods and services, or 15 months of goods only.
“This is substantially higher than the prescribed international benchmark of 3.0 months, reflecting a robust buffer against external shocks.
“Inflation trended upward, driven largely by high food prices, cost of energy and legacy infrastructural challenges, but it commenced deceleration from 34.19% in June 2024 and to 33.40% in July 2024.
“The moderation in inflation became more pronounced in August 2024, as headline inflation further eased to 32.15%, largely attributed to monetary policy measures taken by the Bank”, he added.
” With aggressive monetary policy tightening coupled with robust monetary- fiscal policy coordination, inflation is expected to further trend downward in the near-to-medium term, Cardoso said.
“To combat inflation, he said they had fully reverted to orthodox monetary policy approach and implemented a comprehensive set of monetary policy measures.
“These include raising the policy rate by 850 basis points to 27.25%, increasing Cash Reserve Ratios and normalising Open Market Operations as our primary liquidity management tool.
“In addition, we have adopted an Inflation-Targeting (IT) monetary policy framework as part of the Bank’s Enterprise Strategy (2024 2028).
“The IT framework, widely adopted across various global economies, is renowned for its effectiveness in combating persistent inflation.
“These integrated measures are aimed at stabilizing prices, optimizing liquidity management, and engendering an effective monetary policy framework.
“Regarding the foreign exchange market, the the Bank implemented various reforms including a unification strategy, which streamlined various exchange rate windows into a single model, adopting the ‘Willing Buyer, Willing Seller’ approach to enhance FX liquidity and financial market stability.
“This move was aimed at fostering transparency, reducing market distortions, and enhancing the efficiency of foreign exchange allocations.
“This consolidation involved the implementation of new operational guidelines, which included removing the International Money Transfer Operators (IMTOS) quote cap.
“Additionally, the Bank resumed the sales of FX at the Nigerian Autonomous Foreign Exchange Market (NAFEM) and Bureau De Change (BDC) segments, bolstered by an improved supply from Foreign Portfolio Investors (FPIs)”, he added.
On banking supervision, Cardoso emphasised that the CBN has taken decisive actions to ensure the safety, soundness, and resilience of the banking industry.
“One of the key measures include the recapitalization of the banking sector by raising the minimum capital base to support the $1 trillion economy envisioned by the Federal Government of Nigeria (FGN) by 2030.
“Banks are required to meet these new thresholds by March 31, 2026, with several options available for reaching these targets.
“These options include issuing of new equities, engaging in mergers and acquisitions, or adjusting their operational licenses. The Bank also revoked the licence of Heritage Bank, facilitated the successful merger of Unity Bank and Providus Bank, revised Cybersecurity Rules for Banks and PSPs, suspension of processing fees on cash deposits, and enhanced Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) supervision, amongst others”, he stated.
On Monetary and fiscal policy coordination, he said they had strengthened collaboration during the period under review.
“In this regard, several joint committees have been instituted to build synergy and to provide platforms for key stakeholders’ engagements to explore ways through which monetary policy implementation and fiscal operations can be conducted in a mutually reinforcing manner.
“Overall, our policy measures reflect a holistic approach to addressing various challenges in the economy. While some measures have immediate effects, others are designed to bring about long-term structural changes. Our ultimate goal is to create a more stable, resilient, and efficient monetary and financial system that can better serve the Nigerian economy, while adhering to global best practices”, he noted.
Cardoso said the Bank’s numerous policy initiatives have begun to yield significant results across various sectors of the economy.
He said: “In the foreign exchange market, we have achieved increased transparency and improved overall supply. By allowing the foreign exchange rate to be determined by market demand and supply, the CBN has reduced arbitrage and speculative activities, and eliminated the front-loading of FX demand.
“These policy measures have effectively narrowed the exchange rate disparities between the NAFEM and BDC segments, which have largely led to the convergence of FX rates. Improved transparency in the market has restored market confidence leading to increased capital inflows which enabled the CBN to clear existing FX backlogs.
“The settlement of all legitimate backlogs of outstanding FX obligations by the Bank has significantly improved Nigeria’s credibility and ratings across the global financial market, helping to boost investor confidence, and enhanced liquidity in the foreign exchange market.
“With improved investor confidence, foreign investments have increased as evidenced by a significant rise in capital importation by 65.56% to $6.49 billion between January and July 2024, compared to US$3.92 billion in the corresponding period of 2023.
“Collectively, these actions have contributed significantly to the stability of the financial system. While inflation remains a major concern, we are not relenting in ensuring that requisite measures are taken.
“Headline inflation slightly increased from 32.15% in August to 32.70% in September 2024. The MPC further tightened the policy rate in its September meeting in anticipation of an uptick in inflation due to the upward adjustment of the petroleum pump price.
“On a positive note, there was a moderation in core inflation from 27.58% to 27.43% over the same period. We therefore expect the year to end with significant moderation in inflation, as our policy measures permeate the real economy,” he said.
On the outlook for the economy, Cardoso said he was confident as the country expects continued positive growth, especially in the non-oil, oil and industrial sectors.
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Ex-VP Atiku raises alarm over strange payment into his account

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Ex-Vice President Atiku Abubakar has raised an alarm a strange person who transferred money into one of his private bank accounts, saying the incident raises serious questions about the security of his confidential banking information.

The ex-Vice President, who is the African Democratic Congress (ADC) presidential candidate, made this disclosure in a statement issued on Friday by his Senior Special Assistant on Public Communication, Phrank Shaibu.

It was stared in the payment that they credit came from someone unknown to Atiku, with the transaction carrying the description, “Contribution Electioneering Campaign.”

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The statement stressed that neither Atiku nor his campaign requested, approved or had any prior knowledge of the payment.

“Neither His Excellency nor his campaign solicited, authorised or has any knowledge of the individual or entity behind the unauthorised payment,” the statement read.

He said the transaction was particularly troubling because the account involved is a personal one whose details are not publicly known.

He questioned how an unknown individual was able to obtain the confidential account information.

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“The account is a strictly private one whose details are not in the public domain. This raises a fundamental question: How did unknown persons obtain the confidential banking details of a private citizen?” it added.

The former Vice President warned that the incident raises wider concerns about the safety of Nigerians’ financial information.

If the private banking information of a former Vice President and a leading presidential candidate can be accessed and deployed for reasons yet unknown then no Nigerian’s financial privacy is safe,” the statement quoted him as saying.

He also expressed concern that the information may have been accessed through people with privileged access to sensitive financial records.

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“Even more disturbing is the suspicion that such confidential information may have been obtained through persons with privileged access,” the statement said.

Atiku further warned that any confirmed breach of private banking information could expose citizens to serious security risks.

“If established, this would amount to a grave abuse of power capable of exposing the account holder to kidnappers, terrorists and fraudsters.

The former Vice President also called the attention of Nigerians and security agencies to the incident, describing it as part of what he termed a series of “suspicious activities” ahead of the 2027 general elections.

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“We therefore put the Nigerian public and the security agencies on notice about this latest incident in a litany of suspicious activities leading up to next year’s general elections.”

Atiku also alleged that the incident could be part of an attempt to damage his reputation as political activities intensify ahead of the elections.

He urged Nigerians not to be distracted by what he described as “tired tactics” aimed at character assassination.

“Such desperate antics have failed before and will fail again.”

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The ADC presidential candidate said he remained focused on his political agenda and his stated commitment to providing solutions to the country’s challenges.

“The Waziri Adamawa remains focused on offering Nigerians credible leadership and practical solutions to the nation’s challenges.”

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Nigeria-China Deepen Cultural Ties With New Media Partnership

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By Gloria Ikibah

Nigeria and the People’s Republic of China have strengthened their cultural and creative ties with the signing of a Content Exchange and Cooperation Agreement between the China Movie Channel (CMC) and the Nigerian Television Authority (NTA), a move expected to boost film production, media collaboration and cultural diplomacy between both countries.

The agreement was signed in Abuja during the China-Nigeria Film and Literature Symposium, which brought together diplomats, government officials, filmmakers, authors and other stakeholders from the creative industries of both countries.

Speaking at the event, Chinese Ambassador to Nigeria, Yu Dunhai, described the partnership as another milestone in the long-standing relationship between Nigeria and China, noting that literature and film have remained powerful tools for strengthening mutual understanding between peoples.

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He said celebrated Nigerian writers, including Wole Soyinka, Chinua Achebe and Chimamanda Ngozi Adichie, as well as renowned Chinese authors such as Mo Yan, Yu Hua and Mai Jia, have continued to build bridges of friendship through their literary works.

According to the envoy, both countries have established themselves as global forces in visual storytelling, making the collaboration both timely and strategic.

China, he noted, currently operates more than 93,000 cinema screens and produces about 700 films annually, while Nigeria’s thriving film industry releases over 2,000 films each year.

He also pointed to the growing appreciation of each country’s productions, citing the successful screening of the Chinese film My People, My Country in Nigeria and Nigerian productions such as Lionheart and October 1 in China.

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“The mutual appreciation of literature and film between the peoples of China and Nigeria is rooted in close friendship and cultural ties,” Ambassador Yu said.

He added that the initiative aligns with Chinese President Xi Jinping’s Global Civilization Initiative and President Bola Ahmed Tinubu’s vision of strengthening cross-border cultural cooperation.

The ambassador further noted that the agreement comes at a significant moment, marking the 55th anniversary of diplomatic relations between Nigeria and China, the China-Africa Year of People-to-People Exchanges and the 105th anniversary of the Communist Party of China.

Representing the Federal Government, Permanent Secretary in the Ministry of Art, Culture, Tourism and Creative Economy, Abdulkarim Ibrahim, described the agreement as a major boost for Nigeria’s creative industry and digital media ecosystem.

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“This partnership will create new opportunities for professional development, technological innovation, and co-productions,” Ibrahim stated.

He praised China for its continued support through fully funded educational, technical and capacity-building programmes, which he said have benefited many Nigerian public servants and professionals in the creative sector.

According to him, as the Federal Government intensifies efforts to harness the creative industry as a driver of economic growth and employment, international collaborations such as the one with China will provide the technical expertise and global exposure needed to accelerate that vision.

Also speaking, Director-General of the Nigerian Television Authority, Salihu Abdulhamid Dembos, said the agreement will significantly improve content sharing between both countries and open new opportunities for audiences to access diverse productions.

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He explained that the partnership will also promote wider accessibility through emerging technologies, including the possible integration of Artificial Intelligence-powered translation systems to enable viewers in both countries to enjoy films and television content without language barriers.

The symposium ended with interactive panel discussions involving Nigerian and Chinese filmmakers, writers and media experts, who explored opportunities for joint productions, talent development, content exchange and deeper collaboration between the creative industries of both nations.

Stakeholders expressed optimism that the agreement would not only strengthen diplomatic relations but also create fresh opportunities for cultural exchange, innovation and growth in the film and broadcast sectors.

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Fayose inaugurated as REA board’s chair, promises unprecedented results

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The Minister of Power, Mr Joseph Tegbe, on Friday inaugurated former Gov. Ayo Fayose of Ekiti, as Chairman of the Governing Board of the Rural Electrification Agency (REA).

Also inaugurated are Alhaji Ahmadu Abubakar and Mr Ilyasu Makinta and three others as members and non-executive directors, with Mr Abba Aliyu as Managing Director.

Fayose, who thanked President Bola Tinubu for finding them worthy said his mission in REA is to take the agency to greater heights by providing the needed political will.

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He promised to do everything possible to ensure that the agency gets funds to achieve its long and short-term programmes for Nigerians to get electricity.

“Work has started in earnest; we are reaching out very fast and appealing to people to ensure the work is done.

“I want to use this window to assure Nigerians that your expectation about my appointment and my colleagues will not be dashed.

“We will give our best to achieve the renewed hope of President Tinubu for the country to be better for us all,‘’ he said.

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He noted that a number of challenges faced in the power sector were at the grassroots.

He said that the assignment given to them was beyond providing electricity but also looking at the population of the country who need to feel the impact of the energy.

“When this happens, the people will forever be indebted to the agency,” he said

On his part, REA’s managing director thanked Tinubu for the opportunity to serve.

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Aliyu promised that the agency would continue to do its best to ensure electricity gets to the served and underserved communities.

Earlier, Tegbe said the Nigeria electricity sector was moving from counting kilowatts and megawatts to powering more communities in the country.

Tegbe said this while inaugurating the Governing Board of the Rural Electrification Agency (REA) in Abuja on Friday.

The minister explained that REA occupies a unique and strategic place within Nigeria’s power sector architecture, adding that its mandate extends well beyond connecting communities to electricity.

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“We are moving from just counting kilowatts and megawatts to how many communities and people were powered in the country.

“REA is fundamentally an institution for expanding opportunity.

“Every mini-grid inaugurated, every solar home system deployed, every market, school, primary healthcare centre, farm, or productive enterprise electrified represents an investment in human capital, economic inclusion, and national prosperity.

“As we continue the implementation of the Electricity Act and deepen reforms across the Nigerian Electricity Supply Industry, the role of REA has become even more significant, ‘’ he said.

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The minister said that the agency serves as the bridge between national policy and grassroots impact by ensuring that “the benefits of power reforms are being felt across the country.

“Not only in our major cities but also in the remotest communities across the federation,‘’ he said.

Tegbe said that the constitution of the board was another demonstration of the unwavering commitment of
Tinubu to strengthening governance in institutions.

This, according to him, is entrenching a culture of accountability, strategic oversight, and excellence across the public sector.

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The minister said that the board assumed office at a defining moment, adding that their stewardship must be guided by strategic thinking, transparency, innovation, and a steadfast commitment to provide value for money.

He said that the members were expected to provide clear policy direction, strengthen institutional governance, and safeguard public resources.

He urged them to encourage productive partnerships with development partners and the private sector, and ensure that REA remains a model public institution that delivers measurable impact.

“Most importantly, I encourage you to continually ask one fundamental question whenever decisions come before the board: “How does this improve the lives and livelihoods of ordinary Nigerians?

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“If that question remains our compass, I have no doubt that the agency will continue to exceed expectations”.

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