Banking and Finance

CBN levies $1.3b charge on banks for failing to meet loan target

Nigeria’s central bank has levied a charge on 12 banks for a total of more than 400 billion naira ($1.3 billion) for failing to increase loans to meet a regulatory target, three banking sources and one of the lenders told Reuters on Thursday.

The central bank asked lenders in July to maintain a ratio of lending out at least 60% of deposits by September or face a higher cash reserve levy, part of measures aimed at getting credit flowing in Africa’s biggest economy.

Forex Intervention: Central Bank injects more funds into retail market

The Central Bank of Nigeria (CBN) made an intervention of $311.5million in the retail Secondary Market Intervention Sales (SMIS) and CNY 15million in the spot and short-tenored forwards segment of the inter-bank foreign market.

The intervention was made on Friday October 4, 2019 with the Director, Corporate Communications Department at the CBN, Mr. Isaac Okorafor, confirming the latest injection.

FIRS to capture 45m Nigerian taxpayers before December

The Federal Inland Revenue Service (FIRS) will capture about 45 million Nigerians as taxpayers before the end of the year.

The Chairman of the Joint Tax Board (JTB), Mr Babatunde Fowler, said this on Thursday in Ilorin, the Kwara state capital while speaking at the flag-off of the new TIN registration system and consolidated National Taxpayers’ Database for North Central Geopolitical zone.

Monetary Policy Committee retains MPR at 13.5%

The Monetary Policy Committee (MPC) has retained the Monetary Policy Rate (MPR) at 13.5 percent.

Mr Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), made the fact known after the MPC meeting in Abuja on Friday.

Emefiele disclosed that nine out of 11 members of the committee attended the meeting.

The committee also retained Cash Reserve Ratio (CRR) at 22.5 percent and the Liquidity Ratio at 30 percent.

Federal Government, States, LGCs receive ₦740.88b

The Federal Government, States and Local Government Councils have received a sum of N740.880 billion as federal allocation for the month of August 2019.

It was shared by the Federal Account Allocation Committee (FAAC) in Abuja, Nigeria’s capital.

From the allocated amount, the Federal Government received N301.804 billion, representing 52.68 percent, the states received N188.925 billion representing 26.72 percent, while Local government councils got N142.654 billion, representing 20.60 percent.

Q2 2019 GDP: Broad-based Moderation in the Non-Oil Sector Pulls Economic Growth Lower at 1.9%

The recently released Q2:2019 GDP report revealed that the Nigerian economy expanded at a slower pace of 1.9% Y-o-Y (vs 2.1% in Q1:2019), weaker than Bloomberg’s consensus forecast of 2.5%, due to slow growth in the non-oil sector. The oil sector recovered from its year-long recession, expanding 5.2% Y-o-Y in Q2:2019 (vs -1.5% in Q1:2019). This recovery can be attributed to a weak base as oil production increased 7.6% Y-o-Y to 1.98mbpd but contracted 0.5% Q-o-Q.

STRANSACT NIGERIA Joins International Accounting Alliance TIAG

STRANSACT PARTNERS and STRANSACT AUDIT (STRANSACT) were recently admitted as members of TIAG® (The International Accounting Group), an international alliance of independent accounting firms. STRANSACT will be the exclusive member of TIAG for NIGERIA.

STRANSACT’s membership in TIAG, and the broader TAG Alliances®, will enhance its international capabilities and services by providing the firm with strategic connections to high-quality accounting firms, law firms and other professional services firms in more than 100 countries.

Bailout Funds to States: The FG’s Wild Goose Chase

In a surprising turn of events, the Minister of Finance, Budget & National Planning recently demanded the refund of the bailout provided to Nigerian states to support their budgets and enable them cope with low oil revenues. The states were unable to balance their budgets between 2014 and 2016 due to the significant reduction in government revenues after the oil price crash of mid-2014 and a slump in oil production in 2016. This led to the accumulation of salary arrears, pension arrears, contractor debts and uncompleted capital projects.

Non-oil sector is economy’s last line of defence –NEC

The National Economic Council (NEC) has identified the non-oil sector as the last line of defence for the Nigerian economy.

It says the sector has a potential of adding up to $150 billion to the country’s foreign reserves from non- oil exports over the next 10 years.

Nasarawa State Governor, Abdullahi Sule, revealed this to State House Correspondents, while briefing them on the outcome of Thursday’s NEC meeting presided over by Vice President Yemi Osinbajo.

FG to deepen impact of Foreign Direct Investments —Trade Minister

The Minister of Industry, Trade and Investment, Mr Adeniyi Adebayo, says the ministry will attract Foreign Direct Investments (FDIs) into the country by stimulating business linkages between large and small enterprises.

Adebayo said this yesterday in Abuja at a stakeholders’ engagement for the Implementation of “Business Linkage Programme” for Micro, Small and Medium Enterprises (MSMEs) and Multinational Enterprises (MNES)/Large Local Cooperates (LLCs).

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