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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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Reps Condemn Inhumane Treatment Of Super Eagles In Libya, Call For Investigation

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By Gloria Ikibah
The House of Representatives has condemned in its entirety the inhumane treatment, frustration of the Super Eagles and its delegation by the Libyan Football Federation/Libyan Government.
The House also urged the Federal Government of Nigeria to immediately invite the Libyan Ambassador to Nigeria for questioning on the Maltreatment of the NIgeria Super Eagles contingent to Libya.
The lawmakers also directed the Nigeria Football Federation (NFF) to make an official complaint to Confederation of African Football, CAF and Federation of International Football Association, FIFA for the dehumanization of the Super Eagles players and NFF contingent by the Libyan Authorities on the 13-14″ of October in Libya.
This was sequel to the adoption of a motion on the “Urgent Need To Condemn The Inhumane Treatment Meted Out To Super Eagles Consent At Libya Airport”,  moved by Rep. Kabiru Amadu on Tuesday at plenary.
Leading the debate on the motion, Rep. Amasdu explained that, the Super Eagles of Nigeria was expected to play a return match fixture of the Africa Cup of Nation qualifier against the Mediterranean Knights of Libya on Tuesday, 15″ of October 2024 after they were defeated by the Super Eagles 1-0 at Uyo, Akwa-lbom, Nigeria.
The motion reads: “Also note that, the Super Eagles of Nigeria flew to Libya on Sunday 13″ October 2024 to play the return match of the qualifiers at the Martyrs of February Stadium, Benghazi, Libya at 8:00 PM onthe Tuesday 15” October 2024.
“Further note that among the Super Eagles contingent are House of Representatives members led by the Deputy Chairman, House Committee on Sports and also the Deputy Governor of Edo State, members of NFF Board and the entire crew of NFF.
“Concerned about the frustrating 18-hour ordeal faced by the super Eagles of Nigeria at Al-Abraq International Airport in Libya, where they were left stranded on arrival at 14:00hr on Sunday 13” of October 2024 till the team and the contingent departed from the airport, after 18 hours.
“Also concerned that, the team and the delegation were en-route to Benghazi in Libya, before their aircraft was unexpectedly diverted mid-flight to AlAbraq, a small Airport typically reserved for hajj operations.
“Disturbed, that despite diverting the flight to a small Alrport with little or no amenities, the Libyan authorities did not allow the team to get out of the Airport or move to their hotel, no access to the Internet, no food, the Airport
was cordoned and they were held hostage for 18 hours”.
The lawmaker expressed worries that the Nigeria Football Federation (NFF), in a statement on Monday, 14th October 2024 NFF decried the chaotic situation and inhuman treatment meted out to the super Eagles and the entire contingent, unable to reach their hotel In Benghazi, which Is three hours away from the Airport.
“Cognizant that the fatigued and frustrated players resolved not to play the match any longer due to the hostilities by the Libyan Football Federation/Libyan Government”, Amadu said.
The House unanimously adoption the motion and mandated its Committee on  Sports and Foreign Affairs to investigate the incident and report back for further legislative action.
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Ondo 2024: INEC releases voter’s register to political parties

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Political parties participating in the November 16 governorship election in Ondo State have received copies of the voter register. This was in line with the provisions of the provisions of section 10(4) of the Electoral Act, 2022.

Supervising National Commissioner for Ondo, Ogun and Osun States, Prof. Kunle Ajayi, said the total number of registered voters upon completion of the Continous Voter Registration and clean-up exercise was 2,053,061.

Prof. Ajayi said the commission was prepared and determined to conduct a free, fair, credible, and inclusive election. He encouraged all political party representatives to mobilize their supporters to collect their PVCs.

Ajayi said: “Without the PVC, nobody would be allowed to vote. There will be no collection by proxy as it is against the law, and anybody found with more than one voter’s card belonging to the person shall be made to face the full extent of the law.

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“The commission is keen on enhancing its inclusive election management capacity at all levels. As such, permit me to use this opportunity to call on all Persons With Disability (PWD), PWD-focused CSOs, and groups to encourage any PWD to come out and collect their PVCs as the commission has made adequate provision for assistive devices which would ensure a seamless voting experience for all PWDs in the forthcoming Ondo Governorship Election.”

Ondo REC, Mrs. Babalola Oluwatoyin, encouraged political parties to complement the Commission’s efforts in voter education and sensitization drive to ensure voters participate in the electoral process in large numbers, free from fear and undue influence.

She urged political parties and candidates contesting the governorship election to operate within the confines of the law and engage the electorate peacefully and respectfully.

“The publication and presentation of the Voter Register ensure transparency and establish a level playing field for all participants. I call on all stakeholders — civil society organizations, the media, and the electorate — to remain vigilant and committed to safeguarding the integrity of this process.

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“The publication of the Voters Registers is only the beginning. We must work together to ensure that every stage of this election is conducted with the highest standards of fairness and transparency.”

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Hardship: I see no light at end of tunnel for Nigeria under Tinubu, says Dele Momodu

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Peoples Democratic Party (PDP) chieftain and former presidential candidate, Dele Momodu, has voiced strong doubts about the Bola Tinubu administration’s ability to bring relief to struggling Nigerians.

Speaking on Channels Television’s Politics Today, the veteran journalist expressed skepticism about the government’s promises to turn around the nation’s economic challenges.

“I’ve listened to all the sweet talks by politicians, but I’m yet to see the light at the end of the tunnel,” Momodu remarked, adding that he is doubtful much will change under the current leadership.

While acknowledging his desire for a better Nigeria, he stated, “If they do well, Nigerians will applaud them, but if not, the next leaders will repeat the same criticisms they now direct at Buhari.” Despite his wish for progress, Momodu expressed near despair, pointing to the lack of readiness for real change among those surrounding the president.

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