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14 Nigerian banks to enjoy $7bn reserve

“The report of the 14 Nigerian banks which had been appointed as Asset Managers of Nigeria’s reserves was carried on the back page of The Guardian Newspaper of the 5th of October 2006. The report confirmed that “already deposits worth $7bn representing part of the apex bank’s share of foreign reserves estimated at about $38bn had been released to the consortium of bankers, according to the CBN Head of Corporate Affairs, Mr. Festus Odoko”.

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Is poverty the ultimate reward for pension contributors?

The consciousness of sensitive Nigerians is often assailed by the undignifying sight of senior citizens and other such retirees, who wearily wait in distress for verification of their identity or eventual payment of pension entitlements from government agencies responsible for disbursement. The unsightly juxtaposition of such horrid spectacle against the background of impunity in the misapplication of pension funds is obviously also lost on our current political leadership; worse still, in spite of the reforms enacted in the 2004 Pension Act, there has been no single conviction of anyone for the reckless looting of pension funds.

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Okonjo-Iweala

Okonjo-Iweala perplexed by high interest rates

“The first thing I have to say is that we have a central bank that is autonomous and it is the best practice to make these decisions. We may not be happy about it and I am bold to say we are not happy about high interest rates! As I said before, it is tough for our entrepreneurs to function. Even before the withdrawal of this liquidity, they were already charging over 20% interest rates and I think that is alarming. …we need to interrogate why. Structurally, what is the issue? And we are not willing to ask our banks that question.

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CBN

Heavens save us from our economic (mis)management team

In recent times, one of the causes of malfunctions in the Nigerian financial system is the paradox of substantial government deposits in Deposit Money Banks (DMBs) and high government borrowings from the deposit money banks; as at June 13, 2013, the three tiers of government had N2.384tn in the DMBs out of which about 90% are in zero interest-bearing Current Accounts. To mop up the liquidity at 14% will cost N301.33bn, which is more than the annual budgets of most states….

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Nigera’s Economic Destiny: Trapped

In a recent interactive section with the House of Representatives Committee on Banking and Currency, the Governor of the Central Bank, Lamido Sanusi, noted that if the plan to redesign naira notes last year was successful, “it would have made it impossible for counterfeiters to cook”. He further noted that best practice currency management is that “Within a period of 5 – 8 years, you redesign the currency, after which counterfeiters tend to catch up with you”.

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Naira: redesign, redenomination or revaluation?

In a recent interactive section with the House of Representatives Committee on Banking and Currency, the Governor of the Central Bank, Lamido Sanusi, noted that if the plan to redesign naira notes last year was successful, “it would have made it impossible for counterfeiters to cook”. He further noted that best practice currency management is that “Within a period of 5 – 8 years, you redesign the currency, after which counterfeiters tend to catch up with you”.

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bank

How banks make free money from government funds, by CBN governor

“First of all, you have got liquidity surplus in the banking industry; … there is over N1.3tn or so sitting in banks and belonging to government agencies. Now basically, they (these funds) are at zero percent interest and the banks are lending about N2tn to the government and charging 13 to 14%! Now, that is a very good business model, isn’t it? Give me your money for free and I lend it to you at 14%; so why would I go and lend to anyone?”

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