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
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
News
Tinubu to Revitalize Zamfara and Nigeria’s Economy – Matawalle
…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.
News
Penpushing Media congratulates IPI new leadership
The Management and Editorial Board of Penpushing Media, owner of online newspapers and television have congratulated the newly elected leadership of International Press Institute (IPI) Nigeria Chapter led by Musikilu Mojeed of Premium Times to run affairs of the global organisation for next three years.
The media outlet in a congratulatory letter signed by chairman Editorial Board, Olufunke Fadugba said the organization rejoiced with the team on renewal of their tenure, and equally encouraged them not to only sustain the previous visibility and interventions on behalf of the media but to do more
“We rejoice with you on the renewal of your tenure as leaders of International Press Institute Nigeria. This congratulatory message is to encourage you to not only sustain the previous visibility and interventions on behalf of the media but also to do more”, the letter read.
Fadugba pointed out that the past months have been challenging for journalists, stressing that as the democracy in the country move closer to 2027, it is expected that the great battle for freedom of expression will be more intense.
“The International Press Institute Nigeria and other stakeholders will need to be more creative, determined, and build positive networks to guard the media from existential threats both from within and outside the media ecosystem”, the letter stated.
“However, judging from your previous performances and renewed impetus, we in Penpushing Media have no doubt that you will make a success of this tenure, in the interest of the media, the people and the country”, Fadugba emphasized
“On behalf of the Board, Management, and members of Penpushing, we wish the newly elected Executive Members a successful tenure. Congratulations, as we urge you to continue to carry the members along in order to enjoy their much-needed support”, the letter said
The other elected officials include Ahmed Shekarau of Media Trust as Secretary, Fidelis Mbah of Al Jazeera Television as Deputy President, Rafatu Salami of Voice of Nigeria as Treasurer, Yomi Adeboye of Herald Newspaper as Assistant Secretary and Tobi Soniyi of Arise News as Legal Adviser.
The President of International Press Institute (IPI), Nigeria, Musikilu Mojeed in response to the congratulatory letter expressed appreciation to the management of Penpushing Media, as well as commitment to press freedom and responsible journalism.
“We are deeply grateful for your congratulatory statement on the recent IPI Nigeria election. Your consistent support for IPI means the world to us, and we appreciate your commitment to press freedom and responsible journalism”, Mojeed wrote.
“On behalf of the Board of Trustees, Executive Committee, and members of the Institute, I extend heartfelt thanks for your encouragement. May God continue to bless you abundantly”, he added
“Your support and encouragement inspire us to continue promoting ethical journalism, advancing media pluralism, and defending press freedom. We look forward to collaborating with your administration to expand access to information and reinforce Nigeria’s democratic ethos’, the President stated.
-
Entertainment2 days ago
New Edition of the ‘I Just Saw Jesus’ Book Extends 40-Year Legacy of Media Ministry
-
News3 days ago
Matawalle Salutes Nigerian Military, Citizens at Christmas
-
Transport3 days ago
Travelers to Make Money as Ozi Launches to Redefine $460 billion Global Package Delivery Market
-
Culture2 days ago
Chief Edozie Imah Honoured As UN Peace Ambassador
-
News3 days ago
Tinubu to Revitalize Zamfara and Nigeria’s Economy – Matawalle
-
Uncategorized2 hours ago
Shocking departure of Rafatu Salami: Thunderbolt on journalism
-
Spotlight2 hours ago
Rachel Weeping for Her Children: Finding Hope for Nigeria this Christmas