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CBN Bars Interest Payments on Bank Deposits Above N2bn
![CBN Governor, Godwin Emefiele](https://dailyasset.ng/wp-content/uploads/2019/06/cbn-governor-godwin-emefiele.jpg)
* Afreximbank targets $40bn in Trade Deals
From Udo Onyeka, Lagos & Mathew Dadiya, Abuja
The Central Bank of Nigeria (CBN) yesterday said Deposit Money Banks will no longer receive interest payments on deposits exceeding N2 billion.
The apex bank in a post on its website said: “Any deposit by a bank in excess of N2 billion shall not be remunerated.
”The CBN will pay interest to lenders on qualified deposits at a rate determined by the monetary policy committee.
It would be recalled that the CBN few days ago ordered banks to increase their loan-to-deposit ratio to at least 60 per cent by September or face penalty as it seeks to boost loans to the real sector and bolster growth.
CBN, had in a letter to the banks, said that any bank who fails to act according to the directive would be punished by having their cash ratio increased.
The cash reserve ratio is the share of customers’ deposit that is kept with the apex bank. In the case of default, CBN will be taking more of the bank’s customers deposit as a means of punishing the financial institution.
The letter signed by the director of banking supervision, Ahmad Abdullahi, aims at improving the economy by encouraging more investments in the real sector. The real sector covers areas such as mining, agriculture, manufacturing, building, services and commerce.
The letter said: “To encourage lending to small businesses and consumers and more mortgages, these sectors shall be assigned a weight of 150 per cent in computing the LDR.
“Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50 per cent of the lending shortfall of the target LDR.
In a related development, President of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah has said that the Second Intra-African Trade Fair (IATF2020) is expected to surpass the achievements of the inaugural trade fair held in Cairo in 2018 by attracting 10,000 participants and generating intra-African trade and investment deals worth more than $40 billion.
Afreximbank’s global director of Communications and Branding, Obi Emekekwue on Wednesday stated that Oramah disclosed this at the formal launch of IATF2020 during the African Continental Free Trade Area (AfCFTA) Business Forum 2019 held on the sidelines of the 12th Extraordinary Summit of African Union (AU) Heads of State in Niamey.
He told guests that the trade fair, scheduled for Kigali from 1 to 7 September 2020, would attract more than 1,100 exhibitors from over 55 countries.
“Working with our esteemed partners, we will exceed the achievements of 2018,” he said, describing IATF2018 as a resounding success, not in the colourful displays exhibited, but in the showcasing of diversity of tradable goods by about 1,100 exhibitors from 45 countries and in the execution of deals worth about $32 billion.
That trade fair resulted in a Nigerian technology company winning a $100-million contract to provide technology-based solutions to the South Sudanese government; an Egyptian company winning contracts in many African countries to supply and install energy generation and distribution equipment worth close to $1 billion; Egyptian and Tunisian companies signing a $50-million partnership deal to create a joint venture for assembling home appliances; and the signing of a $3-billion energy generation project between an Egyptian company and an African government, the largest-ever intra-African project executed exclusively by African entities, including financial institutions, he noted.
“The momentum created by the maiden IATF and the historic launch of the African Continental Free Trade Area (AfCFTA) will sustain the growth of cross-border trade and investments,” he affirmed.
Also speaking, Amb. Albert Muchanga, the AU Commissioner for Trade and Industry, said that the IATF was one of a set of activities planned by the African Union Commission to support implementation of the AfCFTA. The others included the African Trade Observatory, a portal for real-time information on business opportunities.
Soraya Hakuziyaremye, Minister of Trade and Industry of Rwanda, said that it was important for the African private sector to take advantage of IATF2020 to present and exchange their products and for entrepreneurs to use it to boost their visibility.
The Second Intra-Africa Trade Fair (IATF2020), which will take place in Kigali from 1-7 September 2020, is expected to attract more than 1,100 exhibitors from 55 countries and to provide a platform for sharing trade, investment and market information. It will enable buyers and sellers, investors and countries to meet, discuss and conclude business deals as well as provide an opportunity for exhibitors to showcase their goods and services and to engage in business-to-business exchanges.
The key features include an IATF2020 Conference, a Creative Africa initiative, which will showcase Africa’s creative economy, Country Days dedicated to specific African countries, and an interactive online Virtual Trade Fair.
IATF2020 is being organized by Afreximbank, in collaboration with the African Union, and is hosted by the Government of Rwanda. The event partners are the African Development Bank, United Nations Economic Commission for Africa represented by the Africa Trade Policy Centre; Afrochampions Initiative; Pan African Chamber of Commerce and Industry; World Trade Centre Miami; Export Development Authority of Egypt; and International Islamic Trade Finance Corporation.
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BOI Restates Commitment to Local Manufacturing, Job Creation
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Managing Director of the Bank of Industry (BOI), Mr Olasupo Olusi has reaffirmed the bank’s commitment to supporting local manufacturing in Nigeria.Olusi said this when he visited the GU Ebeco facility and inspected ongoing projects at the Nisa Medical and Zeberced Group at the Idu Industrial Layout, Abuja yesterday.
He expressed delight at the progress made so far at the various facilities while commending the chief executives of the organisations, urging them to do more. During the visit to the GU Ebeco, the BOI boss emphasised the importance of job creation and the need for their products to proudly bear the “Made in Nigeria” label.Olusi praised GU Ebeco’s progress over the past seven years, applauding its expansion into a national enterprise with over 1,500 employees and several facilities across the country.“I am very happy with the fact that BOI has supported this enterprise for the last seven years. It is wonderful to see that it has grown.“It employs 1,500 staff, and operates a national distribution system. We are proud of the significant role GU Ebeco is playing in the Nigerian manufacturing landscape,” he said.The BOI boss also commended the loan repayment performance of the company saying it had taken multiple facilities from the BOI. He encouraged other young entrepreneurs to stay focused, while assuring them of BOI’s commitment to supporting them and Nigeria’s industrialisation efforts.Responding Mr Ebere Uzozie, Managing Director of GU Ebeco, expressed his appreciation for the continued support from the BOI.“We are grateful for the Bank of Industry’s backing. Their loans have helped us expand and create lasting change. We now have 34 facilities, and we are debt-free.” We are optimistic the visit will mark a new chapter for the company, and will ensure further growth and partnerships that will contribute to Nigeria’s industrial future,” Uzozie said.at the Zeberced Group, its Managing Director, Mr Aydin Kurt, said that Nigeria had lots of potential and could be the future of the world.While acknowledging the country’s potential in industrialisation, he emphasised the importance of producing locally in Nigeria rather than relying on imports.Kurt also appealed for more collaboration with the BOI to promote industrialisation, create jobs and help grow the economy.“I cannot do it alone. we have to come together and create a synergy to attract different investors to come and also invest in this country.“This is our vision we have a lot to share with you, and thank you once again for visiting our corporations,” he said.Responding, the BOI managing director said that the bank was keen on infrastructure and committed to supporting industrious infrastructure.“This project is very important to us and a critical objective for the county and, in that spirit, we have decided that we will continue to support the proliferation of industrial parts across the nation.Why yours is so unique is because it has a plan for Micro Small and Medium Enterprises (MSMEs) which is very important.“We have a mandate to support that particular segment of our economy because they are the ones that champion job creation and most of the growth of the economy is attributed to them,” Olusi said.The BOI boss thanked Zeberced Group for the opportunity while commending the groups’ vision, energy and optimism to carry the project forward.“We look forward to our partnership. Like I said, we all want to be parts and parcel of this project, we have already given you some money to implement it, and we will see how we can do more.“As you expand we will support, but you have to also show us the job creation numbers, and make sure your goods are branded made in Nigeria,” he said.The News Agency of Nigeria reports that GU Ebeco is a furniture company while Zeberced is a construction company. NANCOVER
FRSC Unveils App to Mitigate Road Crashes Impact
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By Tony Obiechina, Abuja
Federal Road Safety Corps (FRSC) has unveiled an app to boost efficiency and mitigate the impact of road accidents in the country.Speaking at the event yesterday in Abuja, the Secretary to the Government of the Federation (SGF), George Akume explained that the app was designed to digitalize FRSC operations for effective traffic management.
The SGF who described the current rate of accidents as a great concern to the present administration, urged the FRSC management to involve stakeholders in the implementation of the app to monitor motorists and curb the excesses of FRSC officers and personnel. The Chairman, House Committee on Road Safety, Abiodun Adeshida said the National Assembly was ready to review the 2007 Federal Road Safety Corps Act for more efficient service delivery.The Kenyan Ambassador to Nigeria, Isaac Parashina said African countries have a lot to learn from the FRSC’s experience in addressing the high rate of road crashes across the continent.According to the him, Africans must come together and provide homegrown solutions to address road safety challenges.In his welcome remarks, the Corps Marshal FRSC, Shehu Mohammed stated that the innovation was part of efforts to align with the Renewed Hope Agenda of President Bola Tinubu’s administration on the use of the new technology to strengthen the commitment of road users and enhancing road safety operations.Mohammed said the corps would embark on aggressive sensitization in all motor parks and town hall meetings for stakeholders to key into the new technology.The Director-General of the Federal Radio Corporation of Nigeria (FRCN), Dr. Mohammed Bulama expressed confidence that the new technology would bring sanity to Nigerian roads.Dr Bulama commended FRSC management for the new operational initiative and pledged FRCN’s continued support to every program to reduce death and enhance economic activities in the country.The Acting President, National Union of Road Transport Workers (NURTW), Isa Ore said leaders in the transport sector would contribute to the success of the application in saving lives on the highway.Other stakeholders in the transport sector promised to support FRSC in enforcing traffic laws and protect lives and property on Nigerian roads.COVER
Lokpobiri Meets Shettima, Denies Involvement in Petrol Price Hike
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By David Torough, Abuja
Minister of State (Oil) Petroleum Resources Heineken Lokpobiri yesterday denied that the Federal Government is responsible for the Tuesday increase in the price of petrol, saying it is a function of deregulation.The latest hike in the price of petrol has pushed up transport fares by over 50 percent in major cities across Nigeria.
The increase implemented by the Nigerian National Petroleum Company (NNPCL) Retail Management ranges from N855 to N897 per litre, depending on the location from the previous N568-N617. Independent marketers have adjusted their prices to between N930 and N1,200 per litre of petrol.The minister denied FG’s involvement while addressing State House correspondents after a meeting with Vice President Kashim Shettima in Abuja.Shettima had summoned Lokpobiri along with the Group Managing Director of Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari and the National Security Adviser Malam Nuhu Ribadu over the recent hike in the price of petrol.Lokpobiri said, “This sector is deregulated. And we believe that with the availability of products, the price will find its level.“What is important is that the product is available in the country. Between now and weekend, there will be availability of the product across the length and breadth of the country.“We believe that by the time there is availability of the product across the country, the price itself will stabilise.”Mr Ogbugo Ukoha, Executive Director, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said regulatory efforts were geared toward stabilising supply of petrol in the country, which he said would impact positively on stability of price.Okuoha said, “The objective of the regulator is to ensure that there’s increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit truck outs as well.“More importantly also is the reinforcement of the support being given to local refinancing, because with increased production there will be higher supply, which will stabilise the price.”Despite making its product available, the Federal Government has not started lifting petrol from the Dangote Refinery.Yesterday, Dangote Group refuted the claim in the media that NNPCL is currently lifting petrol from its refinery and selling at N897 per litre.A statement signed by the Group Chief Branding and Communications Officer, Dangote Group, Anthony Chiejina said the company has not yet finalised any contract with NNPCL.The statement entitled, “NNPC yet to lift our petrol” reads, “Our attention has been drawn to a headline “NNPC lifts Dangote Petrol, sells at N897 per litre” published in the BusinessDay Newspapers of Wednesday, 4 September 2024.“We would like to state that NNPCL has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPCL.“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities.“We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter.“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”