By Tony Obiechina, Abuja

Central Bank of Nigeria (CBN) yesterday announced a review of the loan-to-deposit ratio (LDR) for banks from 65 percent to 50 percent to align with the current monetary tightening.

LDR is used to assess a bank’s liquidity by comparing its total loans to its total deposits.

An increase in the loan-to-deposit ratio allows banks to expand their credits to businesses and individuals, however, a decline in LDR reduces their ability to loan customers from depositors’ funds.

CBN disclosed the increase in a circular titled “Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy”, signed by Adetona Adedeji, CBN Acting Director, Banking Supervision Department.

“Following a shift in the b  ank’s policy stance towards a more contractionary approach, it is imperative to review the loan-to-deposit ratio (LDR) policy to align with the current monetary tightening by the CBN,” the apex bank said.

“Accordingly, the CBN has decided to reduce the LDR by 15 percentage points to 50%, in a similar proportion to the increase in the CRR rate for banks.

“All DMBs are required to maintain this level and are further advised that average daily figures shall continue to be applied to assess compliance.”At the last monetary policy committee (MPC) meeting on March 26, the CBN retained the CRR at 45 percent and the liquidity rate at 30 percent.

By David Torough, Abuja

Gunshots rented the air as officials of the Economic and Financial Crimes Commission (EFCC) yesterday invaded the Abuja residence of the immediate past governor of Kogi State, Yahaya Bello in a bid to arrest him.

The plot is at 9 Bengazi Street, Zone 4, Wuse District, Abuja.

Officers of the Nigeria Police Force and armed men dressed in black with the inscription “Special Forces” prevented operatives of EFCC from picking up the former governor of Kogi State, saying he had secured a court injunction against arrest by EFCC.

EFCC arrived Bello’s home at about 9:30am.

After hours of failed attempt to arrest Bello, the security operatives reinforced with backup support from the police and Department of State Services (DSS).

They were about seizing Bello when the governor of Kogi State, Usman Ododo arrived the premises.

Ododo spent few minutes and was zooming out when it was reported that he was driving out with Bello in his (Ododo’s) car.  

Quickly, operatives opened fire causing protesters, journalists, onlookers and passers-by to scamper for safety.

Ododo and some security personnel as well as supporters showed up at Bello’s house around 2:30pm to voice their opposition to the invasion of Bello’s house.

Operatives blocked the roads leading in and out of the street causing traffic jam around the area.

Ododo arrived at Bello’s residence at about 2:30pm alongside several security operatives and youth supporters protesting against the siege to the ex-governor’s place.

EFCC has always had it rough while on mission to prosecute highly placed individuals especially formers governors.

While some of them resist arrest, some run to court to secure perpetual injunction against arrest.

Former Governor Peter Odili got a perpetual injunction against arrest.Rabi’u Kwankwaso, Abdul’aziz Yari, Bello Matawalle and others got restraining orders against EFCC.

The National Executive Council (NEC) meetng, the National Working Committee (NWC) of the Peoples Democratic Party (PDP) has passed a vote of confidence on its Acting National Chairman, Umar Damagum.

The party’s spokesman, Debo Ologunagba announced in a statement that the NWC took the decision at the end of its 584th meeting on Tuesday in Abuja.

He said the decision was reached in commendation of the efforts and commitment of Damagum’s ability to stabilize and reposition the PDP as the main opposition party in the country.

The party’s national executive meeting was slated for Thursday and the purpose of the meeting was to either affirm or replace Damagun.

 “The Deputy National Chairman (South), Amb. Taofeek Arapaja presided over the motion for the Vote of Confidence on the Acting National Chairman, which was moved by the National Vice Chairman (South East) Chief Ali Odefa and seconded by the National Treasurer, Hon. Yayari Mohammed,” Ologunagba said.

Earlier, attempt to pass a vote of confidence on Damagun during the party’s caucus meeting in the House of Representatives on Tuesday met stiff resistance.

Lawmakers loyal to the party’s Acting National Chairman and FCT Minister, Nyesom Wike attempted to pass a vote of confidence on Damagun but were blocked.

The meeting convened by the Leader of the Caucus and House Minority Leader, Hon. Kingsley Chinda was held for about two hours at the National Assembly, Abuja ahead of today’s NEC meeting.

Last week, a group of 60 PDP federal lawmakers threatened to quit the party if the doctored list of Caretaker Committees in Rivers and 10 other states which was filled with members and loyalist of the All Progressive Congress (APC) is not nullified.

The group under the aegis of Opposition Lawmakers Coalition also demanded the resignation of the Acting National Chairman to pave way for a north-central person to emerge as Acting National Chairman of the party pending the conduct of convention as required by the party’s constitution.

Damagum was appointed the Acting National Chairman in 2023 following the suspension of the former chairman Iyorchia Ayu.

Ayu yesterday withdrew his appeal suit against the PDP and Terhide Utaan who took Ayu to court restraining him from parading himself as the National Chairman following his suspension by his ward.

The Withdrawal of Appeal was contained in Appeal No: CA/MK/88/2024 before the Court of Appeal in Makurdi dated April 15, 2024.“Take notice that the appellant in pursuant herein intends and does hereby wholly withdraws his appeal against all the respondents filed on 27th day of June 2023 vide notice of appeal dated the 26th day of June 2023,” the document reads.