• Advertise
  • Opinion
  • Features & Interviews
  • Investigation
  • Contact
Wednesday, February 8, 2023
  • Login
No Result
View All Result
NEWSLETTER
The Lagos Today
  • Home
  • News
    • Lagos News
    • National News
    • World News
  • Entertainment⚡ by CRAWL
    • All
    • Art & Design
    • Books
    • Movie
    • Music
    • Sports
    Osimhen Breaks Ronaldo’s Record To Become Serie A Jump King

    Osimhen Breaks Ronaldo’s Record To Become Serie A Jump King

    Beyonce Breaks Grammy Record For Most Wins Ever

    Beyonce Breaks Grammy Record For Most Wins Ever

    Nigerian Singer Tems Bags Her First Grammy Award

    Nigerian Singer Tems Bags Her First Grammy Award

    Tems Meets Beyoncé, Jay-Z At Pre-Grammy Event

    Tems Meets Beyoncé, Jay-Z At Pre-Grammy Event

    29 Nigerian Referees Get FIFA Badges

    29 Nigerian Referees Get FIFA Badges

    Why Arsenal Are Winning- Guardiola

    Why Arsenal Are Winning- Guardiola

    Falcons Coach picks Ebi, Oshoala, 21 others for Revelation Cup in Mexico

    Falcons Coach picks Ebi, Oshoala, 21 others for Revelation Cup in Mexico

    Tottenham Sign Nigeria-born Danjuma On Loan From Villarreal

    Tottenham Sign Nigeria-born Danjuma On Loan From Villarreal

    Beyonce rakes in $320k per minute for Dubai concert 

    Beyonce rakes in $320k per minute for Dubai concert 

    Chelsea Agree £29m Deal For PSV Forward, Madueke

    Chelsea Agree £29m Deal For PSV Forward, Madueke

  • Opinion
  • Business
  • Features & Interviews
  • Best Of Lagos
    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    A Rare Hobby: Sports Fishing In Lagos

    A Rare Hobby: Sports Fishing In Lagos

    Chef Nkesi- Experiencing Different Cultures Through Food

    Chef Nkesi- Experiencing Different Cultures Through Food

    Wumi Jubril: Creating Memorable Experiences

    Wumi Jubril: Creating Memorable Experiences

    Nordic hotel

    Nordic Hotel Makes Grand Debut in Lagos

  • Things To Do
  • Home
  • News
    • Lagos News
    • National News
    • World News
  • Entertainment⚡ by CRAWL
    • All
    • Art & Design
    • Books
    • Movie
    • Music
    • Sports
    Osimhen Breaks Ronaldo’s Record To Become Serie A Jump King

    Osimhen Breaks Ronaldo’s Record To Become Serie A Jump King

    Beyonce Breaks Grammy Record For Most Wins Ever

    Beyonce Breaks Grammy Record For Most Wins Ever

    Nigerian Singer Tems Bags Her First Grammy Award

    Nigerian Singer Tems Bags Her First Grammy Award

    Tems Meets Beyoncé, Jay-Z At Pre-Grammy Event

    Tems Meets Beyoncé, Jay-Z At Pre-Grammy Event

    29 Nigerian Referees Get FIFA Badges

    29 Nigerian Referees Get FIFA Badges

    Why Arsenal Are Winning- Guardiola

    Why Arsenal Are Winning- Guardiola

    Falcons Coach picks Ebi, Oshoala, 21 others for Revelation Cup in Mexico

    Falcons Coach picks Ebi, Oshoala, 21 others for Revelation Cup in Mexico

    Tottenham Sign Nigeria-born Danjuma On Loan From Villarreal

    Tottenham Sign Nigeria-born Danjuma On Loan From Villarreal

    Beyonce rakes in $320k per minute for Dubai concert 

    Beyonce rakes in $320k per minute for Dubai concert 

    Chelsea Agree £29m Deal For PSV Forward, Madueke

    Chelsea Agree £29m Deal For PSV Forward, Madueke

  • Opinion
  • Business
  • Features & Interviews
  • Best Of Lagos
    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    A Rare Hobby: Sports Fishing In Lagos

    A Rare Hobby: Sports Fishing In Lagos

    Chef Nkesi- Experiencing Different Cultures Through Food

    Chef Nkesi- Experiencing Different Cultures Through Food

    Wumi Jubril: Creating Memorable Experiences

    Wumi Jubril: Creating Memorable Experiences

    Nordic hotel

    Nordic Hotel Makes Grand Debut in Lagos

  • Things To Do
No Result
View All Result
The Lagos Today
No Result
View All Result
Home Business

Debt: CBN Begins Monthly Deduction Of Project Loans From States

by Segun Adewunmi
September 29, 2022
in Business
4 min read
0
0
Nigerian Manufacturers Decry Difficulty In Accessing Covid-19 Stimulus
Share on FacebookShare on Twitter

The Central Bank of Nigeria (CBN) has begun the collection of project support loan facilities to some state governments for the execution of some projects under its intervention programmes.

The credit facilities were given to some states to finance various projects across different sectors, including agriculture and manufacturing.

“We’ve also started recovering loans from state governments. We have been doing a loan workout programme on them. And we are debiting their FAAC directly for the loans,” CBN’s director in charge of development finance department, Philip Yila Yusuf, said yesterday at a media briefing.

He said if a state government had taken N1 billion and was already in default, the bank would make N150 million monthly debit from their accounts over a six-month period.

“So, we’ve started that programme. So, every single loan that has been given out through any of our intervention programmes must be paid back. There is absolutely no mercy,” he said, adding that the bank was in recovery mode.

Dr Yusuf also disclosed that the central bank had slowed down on loan approvals under its intervention programmes, after the Monetary Policy Committee of the CBN warned that the funds may be fueling Nigeria’s soaring inflation.

About 15 states benefited from the intervention facilities. Each state took a minimum of N1 billion from the central bank-sponsored loans. The loan deductions may further put the states in severe financial stress.

Dr Yusuf disclosed that CBN governor Godwin Emefiele had approved for his team and the Economic and Financial Crimes Commission (EFCC) to set up a desk to help the bank recover the loans where they are at risk.

LEADERSHIP reports that the CBN credit facility was mostly disbursed during the COVID-19 outbreak.

Apart from the states, the CBN is also pursuing aggressive loan recovery from individual farmers under its celebrated Anchor Borrowers’ Programme and micro and medium scale enterprise owners.

“Every single person who has taken that loan is going to pay,” Yusuf said, adding that the apex bank had started implementing the Global Standing Instruction (GSI) and “will continue to poll the account in the bank that they lent to, or whichever bank that they have account.”

“Anytime we see money in that account, we will recover it.”

The bank’s director, monetary policy department, Hassan Mahmud acknowledged that CBN’s financing of government is a major issue, saying, “We are also very mindful of this and we are making sure this is moderated because it is also fueling the liquidity surface that we have within the system.”

He further noted that most of the portfolio was quite securitised. The bank said it is at risk around with MSMEs and then the Anchor Borrowers’ Programme.

The director in charge of development finance said, “We’ve slowed down on our interventions. Only interventions that are very, very critical.”

The central bank considers MSMEs that are statutory, where it takes 5 percent of every bank’s profit after tax and electricity sector support financing as some of the critical areas that would receive intervention funding henceforth.

“Indeed, the interventions have slowed as of yesterday,” he stated.

The CBN has so far lent N9.3 trillion under its intervention programme. As of September 27, 2022, N3.7 trillion had been repaid by the obligors. Yusuf said most of the loans are still under moratorium, especially manufacturing, which forms the largest pile of CBN’s portfolio – over 31 percent.

Meanwhile, the director, banking supervision, Haruna Mustapha, has announced that a new interest rate on savings had been issued to the industry based on current realities.

He said the interest rate on savings was now pegged at 30 percent of Monetary Policy Rate (MPR).

In the wake of COVID-19 outbreak, the CBN reduced the interest rate on savings from 30 percent to 10 percent of the MPR.

“Now, in the prevailing situation, we reverted to the old rate,” Dr Mustapha said. “The effective date is this September.”

According to him, a number of the banks have started implementing the policy.

Dr Mahmud explained that the bank’s expectation that inflation would decrease within the fourth quarter of the year was based on the reason that even though Nigeria is facing structural issues of insecurity, infrastructure and so on, “but what is going on is more on the demand side, and demand side is always short term.”

He said monetary policy tools would be used in the short-term to tame inflation, adding that inflation needs to be nipped in the bud.

“The point we are trying to make now is to make the cost of funds expensive because what we are seeing within the system is that a lot of those funds are standing idle. And that is so because there are no products to create in terms of lending channels. And that’s why we are increasing CRR and doing special bills – all aimed at mopping up that money,” Mr Mahmud said.

Follow us on social media
  • Facebook
  • Twitter
  • Instagram

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...
Tags: Central Bank of Nigeria (CBN)DebtLoan
Previous Post

Osun Guber: Adeleke Floors Babayemi As Supreme Court Dismisses Appeal Against Gov-elect

Next Post

NECO Releases 2022 SSCE Results

Segun Adewunmi

Segun Adewunmi

Related Posts

Manufacturing Firms Borrowed N570bn From Commercial Banks in 2020 Amid Covid-19 Pandemic

Banks Shut Branches Over Customer Attacks

by Idonosan Debe
February 8, 2023
0

As the naira scarcity persists, some banks are shutting their branches over rising customer attacks. This came a day after...

NASS queries CBN over unremitted $3.3bn

CBN Threatens To Withdraw Licence Of PoS Operators Over High Charges

by Idonosan Debe
February 8, 2023
0

The Central Bank of Nigeria (CBN) says it will withdraw the licenses of Point of Sale (PoS) agents caught inflating...

Next Post
NECO Releases 2022 SSCE Results

NECO Releases 2022 SSCE Results

Please login to join discussion

Recommended

Israel and Lebanon finalize Mediterranean border agreement, opening up potentially rich oil and gas fields

Israel and Lebanon finalize Mediterranean border agreement, opening up potentially rich oil and gas fields

3 months ago
Chrissy Teigen and John Legend lose baby after hospitalisation

Chrissy Teigen and John Legend lose baby after hospitalisation

2 years ago

Popular News

    Newsletter

    Connect with us

    Tags

    #EndSARS 2023 Elections 2023 polls 2023 Presidency Academic Staff Union of Universities (ASUU) ACCIDENT Africa All progressives Congress APC Asiwaju Bola Tinubu Babajide Sanwo-Olu Bitcoin CBN Central Bank of NIgeria Central Bank of Nigeria (CBN) China Coronavirus pandemic Covid-19 Covid-19 in Lagos Covid-19 in Nigeria Covid-19 Vaccine Cryptocurrency Donald Trump Drug Trafficking EFCC Federal Government Federal Government of Nigeria Fraud Gov. Sanwo-Olu Insecurity Lagos-Ibadan expressway Lagos state Lagos State Government Lagos State House of Assembly Lagos State Police command Muhammadu Buhari Murder Naira NDLEA Nigeria Rape Strike action UK United states US

    News

    • Business
    • National
    • Politics
    • Tech

    Opinion

    • Editorials
    • Today’s Opinion
    • Letters
    • Sunday Review
    • Advertise
    • Opinion
    • Features & Interviews
    • Investigation
    • Contact

    © 2020 The Lagos Today - Nkali.

    No Result
    View All Result
    • Home
    • News
      • Lagos News
      • National News
      • World News
    • Entertainment
    • Opinion
    • Business
    • Features & Interviews
    • Best Of Lagos
    • Things To Do

    © 2020 The Lagos Today - Nkali.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Create New Account!

    Fill the forms bellow to register

    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    %d bloggers like this: