Posts Tagged ‘CBN

It is a tale of 2 different views of the same economy. <a href=”http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLL52057020090821?sp=true”>Standard and Poor cut Nigeria’s credit rating</a> a notch to B-plus from BB-minus because of the impact of the costly bank bailout and falling oil revenues. <a href=”http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLL52057020090821?sp=true”>Fitch on the other hand</a>, left it the same as it believes it might have a positive impact on the economy.

The Nigerian Tribune had an article today on the complaints of the stakeholders of the banks taken over by the CBN.

You can read excerpts of the report below. My comments follow.

Below are the CBN Governor’s statement on the bank takeovers and the list of bank debtors:

Here are the main news stories as a result of the recent firing of the heads of Intercontinental, Oceanic, Finbank, Afribank, and Union Banks:

The Central Bank of Nigeria recently released the May 2009 Economic Report. The summary and copy of the report are below:

The Central Bank recently held the regular Monetary Policy Committee meeting and the first chaired by the new Governor, Lamido Sanusi. Two of the key outcomes of the meeting were the lifting of restrictions on FOREX trading and the cutting of the key interest rate by 200 basis points (from 8% to 6%) in order to boost credit growth. The other key points from the meeting are:

The Central Bank of Nigeria recently released the quarterly report for Q1 2009. Here is the summary:
- GDP grew by 6.4% in 2008 and 6.3% for the first quarter compared with 5.7% for the same period in 2008.
- The projected growth was driven mainly the non-oil sector particularly agriculture which accounted for 35.5% (according to the National Bureau of Statistics).
- Broad and Narrow Money contracted by 1.9% and 3.9% respectively relative to the preceding quarter. Decline in Broad Money was a result of the fall in the foreign assets of the banking system.
- There was a general increase in banks’ deposits and lending rates in Q1.
- The spread between the weighted average term deposit and
maximum lending rates widened from 8.13 percentage points in the preceding quarter to 9.97 percentage points.
- The margin between the average savings deposit and maximum lending rates, also, widened from 16.62 to 19.33 percentage points during the period.
- The weighted average inter-bank call rate rose to 15.79 per cent from 14.01 per cent in the preceding quarter, reflecting the liquidity condition in the inter-bank funds market.
- The value of money market assets outstanding rose by 5.5% in Q1.
- Total federally collected revenue stood at N1.18 trillion, a decline of 10.8% and 31.9% from the proportionate budget estimate and preceding quarter levels.
- Oil recipts constituted 71.2% of total revenue. This was a decline of 39.5% from the previous quarter and attributed to the decline in oil and gas sales.
- Crude oil export was 110.7 million barrels for teh quarter.
- Inflation rate was 14.4% compared with 15.1% in the previous quarter.
- There was a net outflow of $5.53billion through the CBN during the quarter.
- The Naira depreciated 17% in value during the quarter.

Here are the average interest rates for Nigerian banks:

Lamido Sanusi, the head of First Bank Nigeria has been confirmed as the new CBN Governor.

Sanusi, 47, is currently chief executive officer of First Bank of Nigeria Plc, the country’s biggest lender. The son of a former emir of the northern state of Kano, Sanusi is a graduate in economics from Ahmadu Bello University. He also studied Arabic and Islamic Studies at the International University of Africa in Khartoum, Sudan, between 1991 and 1997.

Below are the average banks’ interest rates for the month of April. The average rate for the was 12.1%. UBA, Standard Chartered, Citi Bank, and Zenith had the lowest rates.

Prof. Soludo, the CBN Chief in a conference today, said some very important things:

  • Nigeria cannot afford to bail out any bank in the event of failure
  • Banks have over $5billion (N784billion) in bad loans on book
  • No plan for a US-styled stimulus

The Central Bank of Nigeria claimed that some banks were already breaching the 15% Maximum Deposit Rate rule and has warned erring institutions.  The maximum deposit rate ws imposted by the CBN and agreed to by the banking exectives on April 1 after some of the banks started scrambling to attract deposits during a liquidity squeeze driving the deposit rate over 20%:


About this blog

This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!

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  • Ejir Emurotu: pls i'd like to know what the current rates on lendind deposits and fixed accounts are,better if the [...]
  • Salami Monsurat Foluke: I need data on tax revenue for my research work. This can be from 1960 to 2011. I would like to hav [...]
  • OGALA MONDAY: kindly assist me with CBN. annual report and statement of account for the year 2009/ 2010 . for my [...]
  • Japhet Aniefiok: I wish to know also the reason behind interest rate fluctuation [...]
  • Japhet Aniefiok: I am to know what is the current savings intersest rate and the rate at which loans are given and al [...]