Nigeria: CBN to Increase Credit to Corporate Sector in 2017

The Central Bank of Nigeria (CBN) on Thursday said the overall availability of credit to the corporate sector was expected to increase further in first quarter of 2017.


The CBN said in the Credit Condition Survey Report, posted on its Website,that the credit to the same sector increased in the fourth quarter of 2016.

The bank attributed the increase in credit availability to some major factors which included changing in sector specific risk and brighter economic outlook.

It said others include: improved liquidity conditions and tight wholesale funding conditions.

The CBN said the demand for secured lending for house purchase increased in fourth quarter of 2016 and was expected to increase further in the next quarter.

“In spite of lenders’ stance in tightening the credit scoring criteria in the current quarter, the proportion of loan applications approved in the fourth quarter of 2016 increased.

“Demand for unsecured credit card lending and overdraft personal loan from households decreased in the current quarter but was expected to increase in the next quarter, ” the apex bank said.

It added that due to lenders’ stance on the tightening in the credit scoring criteria, the proportion of approved households’ total loan applications decreased in the current quarter.

The CBN, however said that it was expected to decrease further in the next quarter.

On demand for secured lending for house purchase, which increased in the fourth quarter of 2016, the bank said it was expected to increase further in the next quarter.


CBN, EFCC freeze fund managers’ bank accounts

Two housewives, identified only as Muyibat and Biliki, have suffered severe burns after a fight over a man.

cbnnPUNCH Metro learnt that the two women emptied a kettle of hot water on each other during the brawl which occurred at their residence in the Yaba area of Lagos State.

Biliki, who was living with her husband in the Surulere area of the state, relocated to her parents’ house in Abule Oja, Yaba, in 2015, after separating from the husband.

Muyibat lives with her husband and three children in the house.

Our correspondent was told that 32-year-old Biliki accused Muyibat, 29, of marrying her former boyfriend, which caused bad blood between them.

Matters, however, came to a head after a disagreement on Saturday when the duo poured hot water on each other.

They were both admitted to a general hospital in the state.

Our correspondent gathered that the case was reported at the Sabo Police Division and one of the parties petitioned the Lagos State Office of the Public Defender, which mediated in the matter.

Muyibat told PUNCH Metro that their problem started after Biliki accused her of marrying her (Biliki’s) boyfriend.

She said, “Biliki told neighbours that she once dated my husband and that she aborted for him during their relationship.

“She calls me Iyawo Sara (free wife).  I have never known peace in that house. She fights me over every minor issue.

“On Saturday, I went to the market with my husband and when we got home, my child started crying.

“Biliki’s younger brother, Ahmed, came out and shouted at him and I cautioned him.

“His sister then picked up a quarrel with me and started raining curses on me. I did not talk because I was observing a fast. While she was abusing me, I sneezed and said, ‘Ausubillahi minashaitani rojeem’ (God, deliver me from the devil).”

Muyibat said Biliki, who is also a Muslim, thought she was referring to her and queried her for calling her a devil.

She alleged that Biliki attacked her in the process.

“I removed the water I was boiling for my vegetables and put it on the table. She (Biliki) held my head from behind and poured the hot water on me.

“Her younger brother slammed a plastic paint on my head, while she drew my hair. Both of them assaulted me,” Muyibat added.

The Kwara State indigene said she was rushed to a private hospital where she was rejected, adding that she later went to the Sabo Police Station to report the case.

Muyibat, who claimed to have passed out on the way to the general hospital, said Biliki had earlier in May threatened to pour acid on her.

However, Biliki, who suffered burns on her breasts, chest and hand, denied the allegations, saying her neighbour was the first to attack her.

She denied ever dating Muyibat’s husband, saying Muyibat was fond of making trouble with her and efforts to reconcile them had always been rebuffed by her.

She said, “I went back to my parents’ house when I had issues with my husband. Because of that, many of the tenants started ridiculing me.

“I was ill that Saturday and was sleeping beside my baby. Her child had come to play with my baby when she called him back. When the child didn’t heed her call, she hit him and the child started crying.

“Another child passing through the passageway was also crying that partcular time. My younger brother asked the other boy to stop crying and Muyibat abused my brother.

“My brother reported her to me and I told him not to reply her. She then started insulting me. We fought and our neighbours came to separate us.

“I was backing her when somebody suddenly shouted, ‘hot water!’ As I turned back with my hands raised, she emptied a kettle of hot water on me. Because my hand was raised when she attacked me, a little of the water splashed on her.”

Biliki said Muyibat also bit her brother while the latter came to separate them, adding that her two phones were smashed by Muyibat.

The Director of the Lagos State Office of the Public Defender, Mrs. Olubukola Salami, described the incident as horrific.

She said, “This horrific incident was totally avoidable as either of the parties could have just walked away and lodge a formal complaint at the nearest police station. But they decided to take the law into their hands and the result was unfortunate.

“Domestic violence has repercussions and it’s totally unacceptable anywhere. The Lagos State Government will deal harshly with those who disturb public peace.”

The Lagos State Police Public Relations Officer, SP Dolapo Badmos, confirmed the incident.

She added that the victims were both given medical papers for treatment, but they had yet to report back to the station.

Senate Gets Budget Proposals for NNPC, CBN, 36 Agencies from Buhari

THE Senate Tuesday received the 2016 budget proposal for the Nigerian National Petroleum Corporation (NNPC), Central Bank of Nigeria (CBN) and 36 other Agencies from President Muhammadu Buhari for consideration and subsequent passage. Announcing the budget Tuesday at plenary, Senate President Bukola Saraki, who presided over yesterday’s session told the Senators that President Buhari requested that the budget for those agencies be given accelerated approval to allow them expend funds for various project in line with their statutory laws and mandate.

The agencies include, Bureau of Public Enterprises (BPE); National Agencies for Science and Engineering Infrastructure (NASEI); Nigerian Airspace Management Agency (NAMA); Nigerian Shippers Council (NSC); National Maritime Authority (NMA), Raw Materials Research and Development Council (RMRDC), National Sugar Development Council (NSDC), Nigerian Postal Service (NPS), Nigerian Ports Authority (NPA), Federal Airport Authority of Nigeria (FAAN), Securities and Exchange Commission (SEC), Nigerian Tourism Development Corporation (NTDC), National Communications Commission (NCC) National Agency for Food and Drugs Administration and Control (NAFDAC),

Nigerian Customs Service (NCS), National Broadcasting Commission (NBC). Others are National Insurance Commission (NIC), News Agency of Nigeria (NAN), Nigerian Copywrights Commission (NCC), Nigerian Deposit Insurance Corporation (NDIC), Nigerian Civil Aviation Authority (NCAA),Federal Inland Revenue Service (FIRS), Nigerian Immigration Service (NIS), Nigerian Electricity Regulatory Commission (NERC), Radio Nigeria, Federal Housing Authority (FHA), Nigerian Television Authority (NTA), National Automotive Design and Development Council (NADDC), Nigerian Nuclear Regulatory Authority (NNRA), National Business and Technical Examination Board (NABTEB), Federal Mortgage Board, National Environmental Standards and Regulations Enforcement Agency (NESREA), Industrial Training Fund (ITF), Corporate Affairs Commission (CAC), Standards Organisation of Nigeria (SON), Oil and Gas Free Zone Authority (OGZFA)
Buhari’s letter read, ” Futher to the provisions of the Fiscal Responsibility Act, 2007 wish to provides that the budget of agencies listed in the the Act be collated and forwarded to the National Assembly for consideration.

“Please note that in line with the provisions of the Act, budget of the agencies and corporations which have been privatised or otherwise sees to exist are not included therein. “May I please pray the Senate to expeditiously consider and approved the budget of this agencies and coroprations to enable them effectively execute their mandate.”

CBN, banks brainstorm on solution to mass sacking

CBN, banks brainstorm on solution to mass sacking

The Bankers’ Committee of the Central Bank of Nigeria (CBN) on Thursday gave assurance that the rate of mass sacking in banks would be reduced within the shortest time possible.

The committee stated this at the end of its 327th meeting at the headquarters of the CBN in Abuja

The Managing Director,Standard Chartered Bank,Mrs Bola Adelola, said the mass sacking in the sector was discussed at the meeting.

Other members of the committee present at the briefing were the Director, Banking Supervision, CBN,Mrs Tokunbo Martins; Managing Director, United Bank for Africa Plc, Mr Phillips Odouza and Managing Director, Union Bank of Nigeria Plc,Mr Emeka Emuwa.

She said that while the banks understood the economic situation in the country, there would always be reasons for workers to be relieved of their jobs.

“On the recent news item on retrenchment, we also discussed it and obviously banks understand the implications of people not being in employment. We know what the situation is like in the country.

“Thus we are looking at ways of ensuring that we minimise many exit from our institutions. There will always be exit as you know because there is fraud and so on and so forth.

“So we have noted the market sentiments and I am sure that going forward it will be different,” she said.

Adesola said that the framework for a National Collateral Registry was almost ready and when released, it would facilitate the easy access of loans by bank customers.

She said based on the guidelines, those seeking loans from banks could use movable assets such as vehicles, fridges, and other home appliances as collaterals.

“You are all aware that the Central Bank of Nigeria is developing a National Collateral Registry. I am pleased to say that they have put the framework in place and the technology.

“They have begun to engage stakeholders and we should expect a role out of the collateral registry being available to banks to register movable assets that they lend against.a policy statement will be issued shortly.

And we expect that that will make more robust the banks’ credit process in lending to customers against movable asset,” she said.

Meanwhile the Director, Banking Supervision, CBN, Mrs Tokunbo Martins, speaking on financial inclusion strategy, said the rate of Nigerians that were financially included in the financial sector had risen to 60.5 per cent.

She said the committee planned to ensure that an additional six million people were captured into the financial system before the end of this year.

“As at today, we have a financial inclusion rate of 60.5 per cent, and you will recall that the target is that by 2020 we should have 80 per cent of the population included.

“So the CBN has agreed targets with the commercial banks and also microfinance banks and by the end of this year, we hope to increase the inclusion rate by eight per cent.

“Strategies and milestones have already been mapped out to achieve that target at the end of the year,” she said.

Also, the Managing Director, United Bank for Africa Plc, Mr Phillips Odouza, said the reason for the delay in releasing the framework for the new flexible foreign exchange policy was to ensure more inputs from stakeholders.

He said as a result of the huge challenge which the country had experienced in the past in managing foreign exchange, there was need for CBN to consult widely, to come up with a robust foreign exchange management framework.

He warned those involved in currency speculation to desist from such practice. He said once the guidelines were finally released, currency speculators would regret their actions.

“We also discussed the framework for flexible exchange rate. As you know, the Central Bank has been working on this for sometime. A lot of input has been received.

“As you know, some other jurisdictions have also implemented the flexible exchange rate model and some of them have done very well and the others are still fine tuning what they have done.

“In the case of Nigeria, we want to make sure that we come up with a model that is very robust and very comprehensive that will be able to address the major exchange rate issues that we are dealing with.

“To this extent, we have gotten a lot of input from various stakeholders and these inputs are being distilled with a view of getting a robust flexible exchange rate model.

“I believe that in a very short while, the exchange rate will be ready. And once this happens, it is going to be made public.And we will adopt it and start working with it immediately,” he said.