News
Pressure for Survivial: Banks’ Borrowing from CBN Hits N52t
Banks’ borrowing from the Central Bank of Nigeria shot up by 80 per cent to N52 trillion in 2017, from N29 trillion in 2016, due to pressure to survive the impact of high interest rate regime and ceaseless liquidity mop-up, driven by the tight monetary policy of the apex bank.
To enjoy this huge liquidity lifeline, accessed through the apex bank’s Standing Lending Facility, the banks paid N40.48 billion as interest to the CBN, representing 84 per cent increase from N22 billion paid in 2016.
In sharp contrast, banks’ deposit placement with the apex bank, through its Standing Deposit Facility, fell by 15.6 per cent to N9.35 trillion, while interest earned also fell by 10 per cent to N4.27 billion in 2017.
According to analysts, the above development was triggered by the high interest rate regime, which made the CBN’s Standing Lending Facility the cheapest source of borrowing for banks, and the Standing Deposit Facility unattractive for deposit placement for banks.
Meanwhile, the above development exceeded Financial Vanguard projections for banks patronage of the SLF and SDF for 2017.
In an exclusive report published on Monday June 26, 2017, Financial Vanguard projected that banks’ borrowing from the apex bank will rise by 51 per cent to N45 trillion in 2017, while interest paid will also rise by 64 per cent to N22 billion.
Financial Vanguard also projected that banks’ deposit placement with the CBN will fall by 14.3 per cent to N15.6 trillion in 2017, while interest earned by banks was projected to rise moderately to N5.1 billion.
Banks borrowing from CBN and interest paid
According to the quarterly economic reports of the CBN, banks’ borrowing from the CBN fell by 9.6 per cent to N12.25 trillion in the first quarter of 2017 (Q1’2017) from N13 trillion in the fourth quarter of 2016 (Q4’2016).
But in the second quarter of 2017 (Q2’2017), banks’ borrowed more from the apex bank.
Their borrowings through the SLF rose sharply quarter-on-quarter by 19 percent to N14.6 trillion.
This trend, however, did not persist in the third quarter (Q3’2017) as borrowing dropped by 7 per cent to N13.6 trillion.
The borrowing further dropped by 14 per cent, quarter-on-quarter to N11.7 trillion in the fourth quarter (Q4’2017).
Interest paid by banks to the apex bank followed the same pattern.
In Q1’2017, banks paid N9.3 billion as interest to the CBN, up by 6.7 per cent, from N9.97 billion paid in Q4’2016.
In Q2’2017, interest paid by banks spiked by 47 per cent to N13.7 billion.
This increase was reversed in Q3’2017, as interest paid fell back to N9.3 per cent.
This trend was repeated in Q4’2017, as interest paid by banks fell by 14 per cent to N8.04 billion.
The above indicate that while banks’ borrowing from CBN and interest paid rose in the first half of 2017 (H1’2017), they however declined in the second half of the year (H2’2017).
Deposit placement by banks and interest earned
The CBN economic reports showed that banks’ deposit placement with the CBN through the SDF rose by 14 per cent to N3.36 trillion in Q1’2017, from N2.95 trillion in Q4’2016.
However, the deposit placement declined quarter-on-quarter, by 42 per cent and 21 per cent to N1.96 trillion and N1.54 trillion in Q2’2017 and Q3’2017 respectively.
The trend was reversed in Q4’2017, as their deposit placement spiked by 62 per cent (quarter-on-quarter) to N2.49 trillion
News
Widows, Wives and More than 2,000 Residents of Ikeja Police Barracks Benefit from YP4T’s Initiative
More than 2,000 individuals from the Ikeja Police Barracks community benefited from an impactful outreach program spearheaded by Young Professionals for Tinubu (YP4T), an advocacy and support group working in alignment with the Renewed Hope Agenda of President Bola Ahmed Tinubu.
The initiative provided critical medical services, care packages, food supplies, and financial assistance to widows, wives, and vulnerable residents, demonstrating the heart of nation-building through community-centered support.
The program, which united healthcare professionals, community organizers, and volunteers, complemented the government’s broader efforts to bring essential services closer to the people.
Residents of the Ikeja Police Barracks received free medical consultations, blood pressure and diabetes screenings, and wellness advice. Widows and families also left with care packages filled with food items, toiletries, and financial support to help alleviate the pressures of the holiday season.
Dr. Love V. Tinuoye, CEO of Medvita Consultancy and the lead doctor on-site, reflected on the impact:
“This initiative reflects a collective commitment to advancing healthcare in Nigeria. We were able to screen for and address critical health issues such as hypertension and diabetes while also providing preventive care like vaccinations and cancer screenings. This is what true community-focused care looks like.”
Beyond medical services, the outreach distributed care packages containing food staples, toiletries, and financial support, designed to alleviate the challenges faced by vulnerable members of the police barracks community.
The event highlights the ongoing efforts under the Renewed Hope Agenda to provide inclusive support for Nigerians across the country. Initiatives like this not only extend access to essential services but also strengthen the fabric of communities.
Mrs. Jumoke Elom, a businesswoman and beneficiary, shared her gratitude:
“I am deeply grateful for this program. The care my family received today—both medical and material—has given us hope and reminded us that we are not alone. It shows that there is real support for families like mine.”
The outreach program was also a platform for demonstrating the principles of nation-building through collaborative action. Alex Oware, Security Expert and Director of YP4T, explained the motivation behind the initiative: “The Renewed Hope Agenda is about about bringing real transformation to communities. This initiative embodies that vision by supporting over 2,000 people—not just through tangible resources, but by reaffirming their place in the collective growth of our nation. It lies at the soul of Renewed Hope: fostering resilience and creating opportunities for all Nigerians.”
The outreach program extended beyond healthcare, providing food and financial support to families within the police barracks. A touching moment involved a widow who, after receiving her care package, expressed her gratitude with tears of joy. Her story is just one of many that reflect the transformative power of collective action.
This initiative by YP4T—an advocacy and support group of Nigerian professionals from across the globe—represents a continued commitment to driving grassroots impact, inspired by President Tinubu’s vision. The success of the Ikeja outreach program demonstrates the power of collaboration between the public and private sectors to deliver meaningful change across Nigeria.
News
Matawalle Salutes Nigerian Military, Citizens at Christmas
… Calls for Love and Peaceful Coexistence
The Honourable Minister of State for Defence, H.E. Dr. Bello Mohammad Matawalle, has extended warm greetings to the Nigerian military and all citizens, both Christians and non-Christians, during this joyous Christmas season.
In his message, he emphasized the importance of embodying the spirit of love and peaceful coexistence, urging all Nigerians to reflect on these values not only during the festive period but throughout the year.
“This season serves as a poignant reminder of the enduring principles of peace, unity, love, and sacrifice that bind us as a nation,” he stated.
The Minister encouraged every Nigerian, regardless of their religious beliefs, to celebrate and honor President Bola Ahmed Tinubu, GCFR, as well as the brave men and women of the Armed Forces who tirelessly demonstrate their patriotism in safeguarding the safety and sovereignty of our beloved country.
Highlighting the significance of the yuletide season, he noted that it should reinforce our bonds of unity, foster a spirit of camaraderie, and inspire compassion towards one another. He called on all citizens to remain steadfast in their collective efforts to build a secure and prosperous Nigeria.
In conclusion, the Minister wished everyone a Merry Christmas and a Happy New Year.
Henshaw Ogubike, MNIPR, FCAI, FSCA, FCPE
Director of Information, Press and Public Relations
…Says no government has shown so much support to LGs, State Governments like President Bola Ahmed Tinubu….
The Minister of State for Defence, Dr. Bello Mohammad Matawalle, has expressed confidence that the administration of President Bola Ahmed Tinubu GCFR will significantly enhance the economies of Zamfara State and Nigeria as a whole.
Matawalle who is currently on a five-day visit to his home state, the Minister and former Governor of Zamfara commended President Tinubu for his unprecedented support for Local Government Councils and state governments. “No previous administration has demonstrated such a strong commitment to developing local councils and states as President Tinubu,” Matawalle remarked.
He highlighted the President’s role as a grassroots mobilizer, emphasizing his passion for local development. “President Tinubu has allocated substantial funds to states and local government councils, enabling them to undertake impactful development projects,” he added.
Matawalle urged party supporters to collaborate with their leaders to reclaim the lost mandate from the ruling Peoples Democratic Party (PDP) in Zamfara State. “It is essential for all APC members to remain law-abiding citizens,” he stated, reinforcing the party’s commitment to uphold the law.
Addressing a large gathering of supporters who welcomed him, Matawalle reassured them of the federal government’s ongoing efforts to combat banditry and terrorism in the region. “With the federal government’s initiatives to address security challenges, we will soon experience a renewed sense of safety and peace,” he emphasized.
He concluded his address by urging the community to continue supporting the government at all levels. “Together, we can restore peace and order in our country,” Matawalle affirmed.
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