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
King Charles Reportedly “Really Unwell” And Funeral Plans Are Currently Being Reviewed
King Charles III’s health is causing concern for friends and the palace as he continues to battle cancer.
“Speaking to friends of the king in recent weeks about his health, the most common response is … ‘It’s not good,’” Tom Sykes of the Daily Beast reported Thursday, April 25.
A friend of the monarch claimed Charles “is determined to beat it and they are throwing everything at it,” adding, “Everyone is staying optimistic, but he is really very unwell. More than they are letting on.”
Royal writer Tina Brown also hinted at the monarch’s health struggles, writing recently that Charles’ cancer has put Prince William and Kate Middleton “in frightening proximity to ascending the throne just when they had hoped for a span of years to parent their children out of the public eye.”
“The prospect of it, I am told, is causing them intense anxiety.”
Sykes also reported that the king’s funeral plans, codenamed “Operation Menai Bridge”, are currently being reviewed.
A separate document that states what went well at Queen Elizabeth’s September 2022 funeral and what could be done better the next time a monarch dies is also circulating, according to the Daily Beast.
All the sources emphasized that royal funeral plans are constantly in review. However, one former staffer in particular conceded that Charles’ health woes have given his plans a different urgency.
“The plans have been dusted off and are actively being kept up to date,” the former staffer explained.
“It’s no more than what you would expect given the king has been diagnosed with cancer. But the circulation of them has certainly focused minds.”
Buckingham Palace announced in February that after undergoing surgery for a benign prostate enlargement, it was discovered that the king has cancer.
We hope the king gets well soon.
News
EFCC: New Documents Extracted Shows Yahaya Bello Allegedly Paid School Fees To The Tune Of $845,852,84 For His Family Members
Still on the EFCC trailing on Ex Governor of Kogi State, Yahaya Bello, Documents serving as exhibits have shown how he allegedly paid school fees in advance for his family members already in the school and even those to be enrolled in future with hundreds of thousands of dollars withdrawn from the state coffers.
A letter from the American International School of Abuja to the Economic and Financial Crimes Commission (EFCC) has shown the school admitting that Bello, the former governor of Kogi State, paid $845,852,84 into their bank account since September 2021 as advance school fees for 4 family members from the present class until they graduate.
Payment was also made for any future student to be enrolled by the family.
The document alleges that the payment was made by Mr. Ali Bello, alleged to be the eldest son of Yahaya Bello.
In the document, the school stated that they have deducted the fees for the educational service already rendered to the Bello children in the institution and what is left is $760, 910, which would be refunded to an account provided by the EFCC as the commission continues investigation into alleged money laundering levelled against Yahaya Bello.
The school also added that from the Bello family kids, “no further additional fees are expected in respect of tuition until they graduate from ASIA.”
News
Niger State Prisoners Run From Facility After Rainstorm Brings Down Part Of Fencing
Many prisoners serving time at the Suleja Correctional Centre, located in Suleja Local Government of Niger state, fled the facility after a rainstorm brought down a part of the inner fencing.
This incident happened as a result of the heavy rainfall which fell on Wednesday night. This led to a cell being torn down, providing incarcerated individuals with a chance at freedom.
Reporters gathered that security forces fired many shots in the air, attempting to scare the inmates out of hiding.
While the State Comptroller of Prisons declined to speak to the press, it has been noted that security has been beefed up on the Minna-Suleja and Suleja-Kaduna roads, including the Madalla axis to Abuja road, which is a likely escape route out of the state for the inmates.
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