Banks’ borrowing from CBN increases by 52% in December

Banks’ borrowing from CBN increases by 52% in December

Liquidity challenges in the economy made the amount of money that commercial banks borrowed from the Central Bank of Nigeria to increase by 52 per cent in the first three weeks of December, data obtained from the CBN website showed on Monday.

The CBN Standing Lending Facility window data revealed that the Deposit Money Banks in the country borrowed N2 . 305 tn from the regulator to cover their cash shortfall positions between December 1 and 22 , 2017.

This represents a 52 per cent increase over the N1 . 515 tn the nation’ s lenders borrowed from the apex bank to cover their positions between November 1 and 22 , 2017.

Commercial banks use the CBN ’ s SLF to support their liquidity shortfalls and meet trading obligations on short- term basis.

The DMBs borrowed N1 . 019 the, N671 bn and N614 bn through the CBN ’ s SLF window during the first , second and third week of December respectively , the central bank data showed.

While the N614 bn borrowed last week was eight per cent lower than the N671 bn loan obtained the penultimate week , the latter was 34 per cent lower than the N 1 . 019 tn the banks borrowed from the CBN three weeks ago.

The CBN SLF data showed that banks borrowed N231 . 92 bn , N217 . 08 bn , N228 . 26 bn , N178 . 28 bn, and N 164 bn, respectively from the central bank between December 4 and 8, 2017.

Between December 11 and 15, the amounts borrowed were N178 . 02 bn , N135 . 3 bn , N123 .77 bn, N116 . 73 bn and N117.64 bn, respectively.

Between December 18 and 22 , the banks borrowed N119 . 836 bn , N132 . 651 bn , N163 . 135 bn , N110739 bn , and N87 . 892 bn , respectively.

During the last week of October and November , the CBN data showed that the banks ’ borrowing from the apex bank rose significantly.

Some analysts attributed the trend to liquidity squeeze and banks ’ demand for funds to participate in the special foreign exchange auctions conducted by the regulator.

In November , the commercial banks borrowed N2 . 77 tn with an average amount of N154 bn.

The highest and lowest amounts the lenders borrowed from the central bank last month were N 260 bn and N 108 bn , respectively.

Economic and financial experts said that the CBN ’ s lending to banks had increased in recent times on the back of liquidity issues in the economy.

Banks with liquidity challenges are often seen more on the CBN SLF window than others.

For example , Skye Bank Plc was said to be more frequent on the CBN SLF window months before the CBN sacked its board and appointed a new one.

The apex bank , which is described as a lender of last resort , has been accused of lending more to the Federal Government in recent months.

A member of the CBN Monetary Policy Committee , Dr . Doyin Salami , had recently accused the central bank of acting like a “ piggy bank ” with its funding of the government.

Salami said he was struggling to understand the apex bank ’s economic rationale for such action.

Monetary data showed a sharp rise in the CBN ’s financing of the government deficit this year, Salami said after the MPC meeting some months ago.

He stated that the CBN ’ s claims on the government had risen 20 - fold to N814 bn from the end of 2016 , while its purchases of government treasury bills increased by 30 per cent to N454 bn.

“ It is clear that the CBN has provided piggy -bank services to the Federal government . While I still wonder what the underlying economics is , I sincerely hope it works , ” Salami added.

The Federal Government is struggling to raise enough revenue amid economic challenges.

WHO Confirms 32 Yellow Fever Cases In Nigeria

WHO Confirms 32 Yellow Fever Cases In Nigeria

The World Health Organisation, WHO, says there were 32 positive cases of yellow fever infection in Nigeria between 2nd of July through 19th of December 2017.

The confirmed cases are part of 63 samples sent to the regional reference laboratory, Institut Pasteur de Dakar, IPD, in Senegal, for confirmation of yellow fever infection from 341 suspected cases reported from 16 states of the Federation.

The affected states include Abia, Anambra, Borno, Edo, Enugu, Kano, Katsina, Kogi, Kwara, Kebbi, Lagos, Nasarawa, Niger, Oyo, Plateau, and Zamfara states.

WHO said Kano, Kebbi, Kogi, Kwara, Nasarawa and Zamfara states have reported confirmed cases of yellow fever. According to WHO: “Of 63 samples sent to IPD for laboratory confirmation of yellow fever infection, 32 were positive, 24 were negative, and 7 results pending at the time of publication of the update.

“Of the 341 suspected cases, 214 (62.8 percent) are males. The most affected age group is people aged 20 years and younger who account for 65.9 percent of cases.

The total number of deaths (among suspected, probable and confirmed cases) is 45 and nine among the confirmed cases. The WHO said although further epidemiological investigations are under way, the case fatality rate for all cases (including suspected, probable and confirmed) is 21.1 percent and 28.1 percent for confirmed cases.

Further, WHO said the response to the outbreak is being coordinated by a multi-agency, multi-partner Incident Management Centre and an Emergency Operations Centre (EOC) has been established to monitor the outbreak.

An EOC has also been established in Kwara state and off-site support is being provided in Zamfara state. On 14th of September 2017, the Nigeria Centre for Disease Control, NCDC, informed WHO of a confirmed case of yellow fever in Kwara State.

On the 15th of September, 2017, an official notification as per the International Health Regulations (IHR) (2005) was issued by the Nigerian National IHR Focal Point.

WHO said the case-patient was a 7 year-old girl from Kwara State who developed symptoms on 16th of August 2017 including fever, vomiting and abdominal pain.

“She had no previous history of yellow fever vaccination and no travel history outside of the state in the two years prior to illness onset.

Her blood sample tested positive by Polymerase Chain Reaction (PCR) at the Lagos University Teaching Hospital, and confirmed by serology tests performed at the regional reference laboratory, Institut Pasteur de Dakar (IPD).

WHO says surveillance for yellow fever has been intensified nationally and a one-week training course was conducted in Lagos to improve diagnosis of yellow fever and measles, with rapid response teams (including epidemiologists and entomologists) from NCDC and WHO were deployed to support local authorities investigate this event further in Kwara, Kogi, and Plateau states, to assess the risk of further amplification, and to assist in conducting reactive vaccination campaigns, among other activities.

The Agency noted that there is currently a moderate risk of regional spread due to the proximity of affected states (Zamfara, and possibly Kebbi) and recommends vaccination against yellow fever for all international travellers nine months of age and older going to Nigeria, as there is evidence of persistent or periodic yellow fever virus transmission.

Nigeria requires a yellow fever vaccination certificate for travellers over one year of age arriving from countries with risk of yellow fever transmission.

Globacom Loses Operating Licence In Benin Republic

Globacom Loses Operating Licence In Benin Republic

Benin Republic’s telecommunications regulator has withdrawn the operating licence of Nigerian mobile telecoms company, Globacom’s local unit in a dispute over new terms, according to a document seen by Reuters.

The regulator, ARCEP-Benin, said it took the decision after negotiations with Glo Mobile Benin to renew its licence broke down earlier this month after the company refused new conditions imposed by the government.

Officials with the parent company, which is owned by Nigerian billionaire, Mike Adenuga, were not immediately available for comment.

The ARCEP document did not say what the government’s new conditions were, but a source close to the regulator, who asked not to be named, said they included an increase in the cost of the licence.

Glo Mobile Benin said it had over 1.6 million subscribers in 2015, according to the most recent statistics available on ARCEP’s website.

Globacom also operates mobile networks in Nigeria and Ghana.

Morocco's ECOWAS Bid: EU Targeting Nigeria Market Through Back Door - OPS

Morocco's ECOWAS Bid: EU Targeting Nigeria Market Through Back Door - OPS

The Organised Private Sector (OPS), yesterday warned the federal government against granting of ECOWAS membership to Morocco, saying it is a desperate move by some European Union members to have unhindered access to Nigeria market through the back door.

They said the move by Morocco if not resisted will worsen the unemployment and poverty levels in Nigeria.

The OPS comprises the Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Association of Small Scale Industries (NASSI) and Nigeria Association of Small and Medium Enterprises (
In a position paper, tagged ‘Reasons Morocco should not be admitted into ECOWAS’, signed by its Chairman, Frank Jacobs, the group warned that: “The proposed enlistment of Morocco into the membership of ECOWAS regional bloc will adversely affect the manufacturing sector, dispel the industrialisation headways already made, worsen the unemployment and poverty levels in Nigeria.”

“Morocco is a member of the Union for the Mediterranean which comprises 28 countries from the European Union. Granting this same country, the membership of ECOWAS affords 28 countries from European Union free access into the regional market thereby flooding the market with EU products. This is a decoy that will weaken the stance of Nigeria on the ECOWAS-EU Economic Partnership Agreement (EPA), inhibit Nigerian diversification and stifle the growth of the manufacturing sector through exploitation of Nigerian and ECOWAS market,” he said.

The OPSN Chairman said that in view of the envisaged injury which Morocco’s admittance will cause to the economic bloc, especially Nigeria, “OPSN urge the Federal Government, ECOWAS Commission and other stakeholders in the Nigerian economy to reject the application.

“We hereby call on the Nigerian Government to as a matter of national interest and utmost urgency deploys necessary diplomatic machinery to halt Morocco’s application to fully join ECOWAS which was considered by the Community during its June 2017 meeting in Liberia now that the damage has not been done.

“This will enable Nigeria to have a formidable position on or before the first quarter 2018 when the final verdict on the application of Morocco will be concluded by ECOWAS,” he said.

According to him, other reasons why the Moroccan application for ECOWAS full membership should be rejected include: “Moroccan economy is not industrialized and so; one wonders where it will get industrial goods to trade with ECOWAS. The obvious is that it would further the interest of EU by becoming a strategic channel for pushing in EU goods that Nigeria is currently challenging through the back door.

“The Moroccan economy is also largely agrarian, one may also wonder what ECOWAS member-states economies that are predominantly agrarian will benefit from admitting Morocco into the Community,” he said.

We Need N1.13trn Annually, Police Tell Senate

We Need N1.13trn Annually, Police Tell Senate

THE Nigeria Police told the Senate that if it must perform effectively and efficiently, it would require nothing less than N1.13trillion for its overhead cost annually, against N31.6billion earmarked for it in the 2017 budget.

According to the Police, of the N31.6 billion for 2017 fiscal year, a meagre amount of N8billion has so far been released.

Speaking yesterday in Abuja during a one day public hearing on a bill seeking the establishment of Police Development Fund organised by the Senator Abu Ibrahim ( APC Katsina South) led Senate Committee on Police Affairs, the Inspector General of Police, IGP, Ibrahim Idris, said the required N1.13 trillion was the current value of N506billion recommended for that effect in 2008 by the late MD Yusufu led Police Reform Committee.

The IGP, however, lamented that the Police, based on yearly budgetary provisions made for it, was grossly underfunded with attendant incapacitation in carrying out its fundamental duties of ensuring security, law and order across the federation .Giving a break down of the required overhead costs of the security outfit, Idris disclosed that of the N19.9bn required to fuel 14,306 vehicles and 3,115 motorcycles on yearly basis, only a billion naira could be set aside for that, out of meagre amount given.

He also said this has also affected the kitting of about 300,000 personnel the security outfit has, which ordinarily should gulp N14.58bn but in 2017 budget, only N1.7bn was earmarked for that and even not fully released with attendant improper kitting of men and officers of the Force.

Meanwhile, Senate President, Bukola Saraki, while declaring open the event, described the Nigeria Police Force as the most underfunded in the world.

Saraki, who was represented by the Senate Leader, Senator Ahmad Lawan, said: “ It is common knowledge that the Nigerian Police Force remains one of the most underfunded in the world and one of the least funded agencies of government despite its onerous responsibility of securing the country and preventing crime.

‘’The Police Trust Fund bill seeks to provide for a professional police service that has the trust and confidence of the Nigerian populace because it delivers quality service under very conducive working environment.

“It cannot be gainsaid that the Nigerian Police Force can play a critical role in safeguarding the country if they are better equipped and motivated than they currently are in order to play their role effectively.”

‘’A very important component of motivating them better is by improving the welfare of police personnel so as to eliminate or reduce the temptation of unethical practices, such as extorting money from commuters at checkpoints, which compounds their inefficiency and gives them a bad image.

“The major benefit of the Nigeria Police Development Fund (Establishment, Etc) Bill, if passed into law is that it would open up diverse funding opportunities for the Nigeria Police Force.

‘’By opening up funding windows from corporate bodies, aid, grants and assistance from international bilateral and multinational bodies, the Trust will expand funding for the Nigeria Police, thereby helping to curb the problem of underfunding.”

Speaking further, IGP Ibrahim Idris, who wholeheartedly supported the passing of the bill into law, said: “Police Trust Fund Bill will definitely serve as the needed solution to the problem of underfunding incapacitating the force.

“ There is a close nexus between security and development and It is our belief that once the Police is adequately funded , the problem of insecurity in the country would be effectively tackled and once there is security , required development
in the country would be achieved.”

Other stakeholders at the public hearing, including officials of the Revenue Mobilization ,Allocation and Fiscal Commission, RMFAC.

Earlier in their remarks, Chairman of the Committee, Senator Abu Ibrahim ( APC Katsina South) and members told the gathering that for the purposes of accountability, the trust fund to be gathered for the force would not be centralized but directly wired to state and local police formations.

British PM May Forces Deputy To Resign Over Pornography Scandal

British PM May Forces Deputy To Resign Over Pornography Scandal

British Prime Minister Theresa May forced her most senior minister , Damian Green , to resign after an internal investigation found he had made misleading comments about pornography on computers in his parliamentary office.

The resignation of one of May ’s most trusted allies, who had helped pacify her deeply divided party , is a blow as she navigates the final year of tortuous negotiations towards Britain ’s exit from the European Union in March 2019 .
Green , who voted to stay in the EU , was appointed as first secretary of state just six months ago in a bid to shore up May ’ s premiership following her disastrous bet on a June snap election that lost her party its majority in parliament .
But Green ’ s future was thrust into doubt when the Sunday Times newspaper reported in November that police in 2008 had found pornography on his office computers in the Houses of Parliament .
In response , Green said the story was untrue .
A review , requested by May and conducted by a senior government official , concluded that Green ’s statements which suggested he was not aware that indecent material had been found on the computers , were “ inaccurate and misleading . ”
The inquiry , a summary of which was distributed by May ’ s Downing Street office, found he had breached rules governing the behavior of ministers.
“ I regret that I ’ ve been asked to resign from the government following breaches of the Ministerial Code , for which I apologise, ” Green said in a letter to May , who said she had accepted his resignation with deep regret .
Green , 61 , said he did not download or view pornography on his parliamentary computers .
He added that he should have been clearer about his statements after the story broke .
He is the most senior British politician to fall since a debate about a culture of abuse by some powerful men at the heart of Westminster was triggered by the Harvey Weinstein sexual harassment scandal .
May ’ s defence minister , Michael Fallon , quit in November for unspecified conduct which he said had fallen below required standards .
Her aid minister resigned a week later after holding undisclosed meetings with Israeli officials .
During the turmoil that followed the botched election , May turned to Green , a friend and ally from their days at Oxford University, to stabilise her premiership and appease those within the Conservative Party who wanted her to quit .
One of his key roles was to act as a conduit for disgruntled party members who felt they had been ignored in May ’ s election campaign .
He sought to help her to shed the image of a distant leader who only listens to those in her inner circle .
“ It ’ s another blow for May but it is not deadly in any way at all ,” said Anand Menon , professor of European politics at King’ s College London .
“ She has lost her soulmate in cabinet but this is not the end of Prime Minister May .
“ May is surviving not because of Damian Green but because there are sufficient MPs in her party who don ’t want to have a leadership election while Brexit is going on and that fundamental calculation has not changed , ” he said .
The internal investigation found that Green ’ s conduct as a minister was generally “ professional and proper ” but found two statements he made on Nov . 4 and Nov . 11 to be inaccurate and misleading .
In the statements he had suggested he was not aware that indecent material was found on parliamentary computers in his office .
“ These statements … constitute breaches of the Ministerial Code. Mr Green accepts this , ” the report summary said .
Green said in his resignation letter that he did not recognise the account of events, but apologised to the woman , academic and critic Kate Maltby , for making her feel uncomfortable .

Constitution Amendment: Reps Fix Minimum Age For Presidential Aspirants At 35, Backs Independent Candidates

Constitution Amendment: Reps Fix Minimum Age For Presidential Aspirants At 35, Backs Independent Candidates

• No second term for VP, D-Gov who succeed dead incumbent
• Road cleared for independent candidates
• Local governments to get financial autonomy
• 35 percent appointments reserved for women

Future presidential elections in the country may be thrown open to interested Nigerians from the age of 35 and above, if constitution amendment proposals now before the House of Representatives are adopted.

The current minimum age for qualification for the office is 40.

Besides, Nigerians from the age of 25 years may also be allowed to seek election into the state assemblies and the House of Representatives, down from the present 30 years.

These are some of the highlights of the report of the fourth alteration of the 1999 Constitution laid before the House by the Lasun Yusuf- headed Constitution Review Committee last Thursday.

The report is scheduled to be considered and adopted through electronic voting on Tuesday and Wednesday after which the House will proceed on its annual recess.

The age qualification provision comes under a bill entitled “An Act to alter the provisions of the constitution of the Federal Republic of Nigeria,1999 to reduce the age for qualification for the offices of the President and Governor and membership of the Senate, House of Representatives and the State Houses of Assembly, and for other related matters.”

It is the brainchild of a coalition of 53 Civil Society Groups which presented it to the House as the “Not too young to run bill.”

The report seeks to bar any person who was sworn in as President or Governor to complete the term of the elected President or Governor from being elected to the same office for more than a single term.

It stipulates that the President must, within 30 days of taking the oath of office, swear in his ministers and in the case of governors, their commissioners.

This, apparently, is to discourage a situation where cabinets are not formed for months.

In addition, the president in sending his list of ministers to the Senate for confirmation, indicate the portfolio of each nominee.

It requires the President to deliver the State of the Nation address before a joint session of the National Assembly on the first legislative day in the month of May every year.

The report recommends that 35 percent of persons appointed as Ministers or commissioners shall be women while there is also provision for independent candidates.

In a move to stop legal disputes arising from elections to drag on for too long, every pre-election matter shall be filed in court not later than 14 days from the date of occurrence of event, decision or action complained of in the suit.

A new subsection 12 proposes that an appeal from a decision of the court on pre-election matter shall be heard and disposed of within 60 days from the date of filing the appeal.

The Council of State is proposed for expansion to include all former Senate Presidents and Speakers of the House of Representatives that were not removed through impeachment. This is to ensure fair representation by the three arms of government.

Section 82 of the report stipulates that the President “may authorize the withdrawal of money in the Consolidated Revenue Fund of the Federation for the purpose of meeting expenditure necessary to carry on business software government for a period not exceeding three months or until the coming into operation of the Appropriation Act, whichever is the earlier.”

The intention is to encourage early presentation and passage of Appropriation Bills.

Section 150 seeks to separate the office of the Attorney General of the Federation from the office of the Minister of Justice.
The report makes no provision for the Joint State/Local government account as it currently obtains.

Thus, revenue allocation from the federal purse goes directly to each local government.

A new section specifically says no unelected person will be recognised by any authority and shall not be entitled to any revenue allocation from the Federation Account or the State government nor exercise any function exercisable by a local government council under the constitution.

Election into the local governments is for a three year-tenure expiration period for elected persons to the Council
Certain items were moved from Exclusive List to Concurrent List in the Second Schedule.

These include national parks, pensions, gratuities and other – like benefits payable out of Consolidated Revenue Fund, post, telegraph and telephones, and stamp duties.

The federal government is to retain exclusive rights to environmental issues relating to, arising from, partaking to and connected with oil and gas exploration, mining activities and other forms of energy exploitation, extraction, transportation and processing.

The federal government is also to have exclusive legislative rights to environmental issues relating to coastal management and Exclusive Economic zone.

It also retains rights to Railway, inter-state railway regulations while State Assembly may make laws for the establishment of State railway transportation.

On electricity, the report proposes in the Second schedule 14 (b) that State Assembly may make laws for the State with respect to “the generation, transmission and distribution of electricity within that State or in collaboration with any other State.”

These are also provisions for financial autonomy for State legislature and immunity for lawmakers from civil or criminal proceedings “in respect of words spoken or written before the House or a Committee thereof.”

It requires the President to deliver the State of the Nation address before a joint session of the National Assembly on the first legislative day in the month of May every year.

The Nation Newspaper