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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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2027: Rainbow Coalition Signals Fresh Political Realignment in Nigeria — Sokoto PDP Guber Candidate

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The Peoples Democratic Party (PDP) governorship candidate in Sokoto State, Abubakar Sokoto, has described the emerging Rainbow Coalition as another chapter in Nigeria’s long history of political alliances and realignments.

Sokoto, in a statement issued in Sokoto on Tuesday, said political coalitions had remained a recurring feature of Nigeria’s electoral history, with parties and political groups often coming together to pursue shared political objectives.

According to him, while the names, personalities, circumstances and goals behind such alliances may change, political realignment remains an established part of the country’s democratic process.

He cited the 1999 AD-APP joint presidential ticket of Olu Falae and Umaru Shinkafi as one of the notable examples of political cooperation in Nigeria.

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He also recalled the Coalition of Progressive Political Parties ahead of the 2015 general elections, as well as the merger involving the Action Congress of Nigeria (ACN), Congress for Progressive Change (CPC) and All Nigeria Peoples Party (ANPP), which eventually led to the formation of the All Progressives Congress (APC).

“The greatest lesson from these experiences is that political coalitions are about people as much as they are about parties,” he said.

On the latest political realignment, Sokoto noted that the Minister of the Federal Capital Territory (FCT), Nyesom Wike, had described the Rainbow Coalition as a multi-party platform mobilising support for President Bola Tinubu’s 2027 re-election bid.

He added that Wike had also maintained that the coalition was not an APC structure.

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Sokoto said concerns reportedly expressed by some APC governors over the emerging coalition should be viewed within the broader context of Nigeria’s history of political alliances and realignments.

He urged APC governors and other party leaders to adopt what he described as a pragmatic approach to the developing political configuration ahead of the 2027 elections.

The PDP candidate also called on Nigerians to support efforts aimed at ensuring that the 2027 general elections are free, fair and credible.

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Niger Miners’ Deaths: ‘Anyone Who Tampers With Evidence Will Face Full Wrath of Law’ — Tunji-Ojo

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The Federal Government has warned that anyone who attempts to destroy or conceal evidence, intimidate witnesses or obstruct investigations into the deaths of 37 suspected illegal miners in Niger State will face prosecution.

Minister of Interior, Olubunmi Tunji-Ojo, issued the warning on Tuesday in Abuja while inaugurating a 10-member independent investigative committee set up to establish the circumstances surrounding the deaths of the detainees in the custody of the Nigeria Security and Civil Defence Corps (NSCDC).

The 37 detainees died on September 17, days after they were arrested during NSCDC operations against suspected illegal mining in the M.I. Wushishi and Lukoto areas of Niger State on September 15 and 16.

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The circumstances and actual cause of the deaths remain under investigations.

Speaking at the inauguration of the panel, Tunji-Ojo directed the NSCDC leadership and all officers linked to the incident to cooperate fully with investigators and ensure that all relevant records and material evidence are preserved.

“All records and material evidence connected to this incident, I have directed that they must be preserved and made available,” the minister said.

He added: “Any attempt by anybody to destroy or conceal evidence, intimidate witnesses or obstruct this investigation will be treated as a serious offence against the nation and it will not be tolerated.
“If it ever happens, I give you my word, the full hammer of the law will descend on such an individual.”

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‘We Owe Nigerians the Truth’
Tunji-Ojo said the Federal Government was determined to establish the truth and ensure accountability, regardless of the status of anyone found culpable.
“To Nigerians, I say this: we owe you the truth.

This committee will give you the truth. No officer, no matter how highly placed, or any individual will be shielded if found culpable,” he said.

The minister also appealed to the families of the deceased to remain calm, assuring them that the government would not abandon them.

“To the families who lost loved ones, I appeal for calm and patience. This government will not and will never abandon you,” he said.

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Tunji-Ojo charged the committee to conduct a thorough investigation and promised that its findings would not be ignored.

“I challenge you: let your antecedent speak when the report is submitted, and I assure you of one thing: this report will not be swept under the carpet,” he said.
He added that those found culpable would face the appropriate legal consequences.

“We will call a meeting like this; we will present the report, and whoever needs to be prosecuted will be prosecuted, and whoever needs to be dealt with in line with the law will be dealt with,” the minister said.

Panel to Determine Cause of Death, Responsibility

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The committee, chaired by retired Deputy Director-General of the Department of State Services (DSS), Jonathan Kure, is expected to establish the identities of the deceased and investigate the circumstances surrounding their arrest and detention.

It will also determine the cause and circumstances of the deaths, establish responsibility, complicity, negligence or misconduct, and recommend appropriate action, including compensation where applicable. The panel is also expected to recommend measures to prevent a recurrence.

The committee has two weeks to complete its investigation and submit its report to the Minister of Interior.

The NSCDC initially attributed the deaths to a suspected disease outbreak, but the official cause has not been established.

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The Federal Government has ordered a comprehensive investigation into the circumstances surrounding the deaths.

The incident has generated widespread public outrage, with survivors and relatives making allegations about the conditions in which the detainees were held. Reports have included claims of overcrowding and poor ventilation, as well as allegations that an unidentified substance was sprayed inside the cell. Those claims remain subject to investigation.

Following the incident, the Federal Government suspended the Niger State NSCDC Commandant, Suberu Siyaka Aniviye, along with 20 other officers pending the outcome of the investigation.

The NSCDC subsequently paraded the suspended commandant and other officers linked to the incident at its national headquarters in Sauka, Abuja, as the Corps presented preliminary findings to journalists.

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President Bola Tinubu had earlier ordered a full and transparent investigation, saying the government would not tolerate mass deaths arising from official negligence, dereliction of duty or failure by public officials to protect people placed in their care.

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Akpabio pays condolence visit to Bamanga Tukur family says he was a detribalised Nigerian(Photos)

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President of the Senate, Godswill Akpabio, has described the late Elderstatesman and former National Chairman of the Peoples Democratic Party(PDP) Alhaji Bamanga Tukur, as a detribalised Nigerian whose contributions to the country transcended ethnic and political boundaries.

Akpabio, who arrived Nigeria from Italy yesterday, stated this while on a condolence visit to the family of the late former governor of the defunct Gongola State on Tuesday. He described the late Tukur as “a detribalised Nigerian, great patriot and towering national figure whose contributions to the country transcended ethnic and political boundaries.”

A statement by his Special Assistant on Media, Jackson Udom, disclosed how Akpabio recalled his personal relationship with the late elder statesman, noting that Tukur had, among other engagements, chaired an event he attended in London in 2009.

“The late Tukur left behind a legacy of love, wisdom and service to the nation and would continue to serve as an example to younger politicians and Nigerians.”

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He expressed regret that Tukur was no longer alive to continue sharing his wealth of experience and wisdom, adding that his contributions to national development would remain memorable.

Akpabio also disclosed that the National Assembly would honour the late elder statesman on the floor of the Senate when it resumes, while urging Tukur’s children to continue in their father’s footsteps and uphold the values for which he was known.

Responding on behalf of the family, one of the deceased’s sons, Mahmoud Tukur, thanked the President of the Senate, his wife, Mrs Unoma Akpabio and his entourage for the condolence visit.

Mahmoud also expressed appreciation to President Bola Tinubu and Nigerians for honouring and remembering his father, who died at the age of 90 on Saturday, September 12, 2026.

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