I’ll revisit naira redesign policy, says Tinubu

President Bola Tinubu, has promised to revisit the naira redesign policy of the Central Bank of Nigeria (CBN). Tinubu, who said this in his inaugural speech in Abuja on Monday, however, said that his administration would treat both the old and the new naira notes as legal tender. He said that the policy was harshly applied by CBN, given the number of unbanked Nigerians. “Whatever merits it had in concept, the currency swap was too harshly applied by the CBN,” he said. Tinubu said that the country’s monetary policy needed thorough housecleaning. He urged the CBN to work toward a unified exchange rate. “This will direct funds away from arbitrage into meaningful investment in the plant, equipment, and jobs that power the real economy.“The interest rate needs to be reduced to increase investment and consumer purchasing in ways that sustain the economy,” he said.

Subsidy is gone, Tinubu declares in inaugural speech

*Says hope is back for Nigeria Nigeria’s new President, Bola Ahmed Tinubu has said that his government will not continue with the current fuel subsidy regime, declaring that “Fuel Subsidy is Gone!” Tinubu said those seeking redress in court concerning his election are doing so within their constitutional rights and he wishes them well. According to the new President, his government is going to concentrate on revamping the economy, and he would work on providing a unified exchange rate for the economy. “Subsidy is gone! It can no longer be justified. We shall channel our efforts toward education, infrastructure, and other areas to ameliorate any suffering. We shall work towards a unified exchange rate and meaningful investment. More details later…

Interest rate hike will affect output, increase unemployment – MAN

Manufacturers Association of Nigeria (MAN) has said that increase in the monetary policy rate by the Central Bank of Nigeria (CBN) would reduce the sector’s output and its ability to absolve new personnel. The Director General of MAN, Mr Segun Ajayi-Kadir who disclosed this in a statement said an increase in MPR will compound the imminent recession in the manufacturing sector and negatively impact on its operations. He said that such a rise would not not only lead to decline in government revenue as result of low productivity of the manufacturing sector, it will as well lead to high cost of production and decline in capacity utilisation. According to him, a hike in MPR will result in an increase in the cost of borrowing that will further discourage investment, reduction in inflow of investment and high product prices owing to rising factor costs, which will in turn render the sector less uncompetitive.  Stating MAN position on the increase, he said upward review in MPR from 18 per cent to 18.5 per cent will certainly lead to an increase in lending rates and worsen the uncompetitiveness of the manufacturing sector.  He said the interrelationship among macroeconomic variables is essential in policy formulation, as the movements of interest rate, inflation rate and exchange rate have direct impact on investment, employment and output of any economy.   He said according to the conventional monetary framework that was adopted by the CBN, increase in MPR should increase interest rate and by extension attract financial investment. However, it will also increase the cost of borrowing, crowd out more investments in the real sector and lower the output of the manufacturing sector.” He said there is a need for the government to take pragmatic steps to quell the inflationary pressure and reposition the economy. “To sustained growth in the sector and economy in general, he said the government needs to take immediate and concrete action to address the manufacturers’ forex needs in order to support and sustain production, adding that prioritizing allocation of forex to the manufacturing sector to procure raw materials, machines and spare parts that are not available locally is the way to go,” he said.  

How CBN’s 18.5% interest rate hike will affect businesses

*Stock Market, Bond Market, Lending Rate, others, to be affected Businesses in Nigeria will have to cope with a higher cost of sourcing funds as the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR) from 18% to 18.5%. The CBN Governor, Godwin Emefiele, announced the decision on Wednesday after the policy-setting committee meeting at the CBN headquarters in Abuja. The development is the third consecutive time the apex bank would be raising the MPR, which determines the interest on lending by financial institutions to borrowers. Commercial banks, as a result of this development, would have to hike lending rates to customers, which may eventually end up higher than 30%. Also, commercial banks are not unlikely to review upward interest rates on debts that borrowers had collected from them due to this development. “This is not healthy for businesses to thrive. This has shown that the economy is in dire need of overhaul since it has failed to support funds for businesses. How can businesses survive this kind of rate hike? CBN has been doing this without results,” a development consultant, Celestine Okeke, is quoted as saying. Okeke stressed that it was becoming more expensive to do business in Nigeria, saying, “Those who borrowed money would pay higher. Nigeria’s stocks are expected to experience low yield as a result of the rate hike.” While data has shown that constant rate hikes have not curbed inflation, experts urged the monetary authorities to change their strategy to tackle the country’s inflation. “Both the monetary and fiscal authorities have to find a lasting solution to the rate hike. It is negatively affecting small and medium-scale enterprises, and it is not a good development for the economy,” a business analyst with Arise Television said while reacting to the MPR hike. Meanwhile, in a flash note published on April 16, 2023, professional services company, KPMG Nigeria, argued that inflation is cost-pushed and need not be tackled by the monetary authorities through rate hikes. “The reversal of inflation in March after a seeming slowdown in February reinforces our view that the determinants of inflation in Nigeria are largely cost-push factors which are out of control of monetary authorities,” the note said. Also, in a report titled, ‘Report Card: CBN’s New Naira Policy and Interest Rate Hikes’, a research consultant with Kwakol, Basil Abia, highlighted reasons why the rate hikes by the MPC have not affected inflation. “The CBN’s aggressive push to contain Nigeria’s high inflation by deploying monetary tightening as part of its monetary policy through repeated interest rate hikes has not yielded the intended result. Inflation continues to rise unabated, mostly because the monetary tightening approach is not the right way to contain Nigeria’s supply-side or cost-push inflation. “It is important to note that Nigeria’s inflation is driven by supply-side concerns that raise the cost of production and, inadvertently, consumer prices.” As explained by analysts, the interest rate has a ripple effect throughout the economy, affecting the Nigeria stock market, bond market, lending rate, consumer and business spending, and asset prices, among others. If the benchmark interest rate is lower, they said, the lending rate will be lower, making borrowing attractive to people. In turn, there’s more money to spend. Conversely, if the interest rate is high, lending becomes expensive, and there’s less to spend. *ICIR

Judgement Debts: Buhari seeks Senate’s approval to pay N226bn, $556.8m, £98.5m

President Muhammadu Buhari has sought the approval of the Senate to issue a promissory note for the payment of $566,754,584.31, £98,526,012.00, and N226, 281, 801, 881.64 judgement debts owed by the Federal Government. Buhari’s request was contained in a letter addressed to Senate President, Ahmed Lawan and read at plenary on Wednesday. Buhari in the letter said: “Distinguished Senate President, you may wish to be informed that the Federal Executive Council (FEC) at its meeting of March 29, 2023, approved the liquidations of top priority judgment debts and general debts owed by Ministries, Departments and Agencies (MDAs) through the issuance of promissory notes. “The judgment debts are to be settled through the issuance of promissory notes which will then be redeemed over time through provisions in the budgets of the Federal Government of Nigeria. “Thus debt securities have been issued for the settlement of the judgment debts and approval of the National Assembly is required for this purpose. “In view of the foregoing, I wish to request the Senate to kindly consider and approve through its resolution the settlement of the top priority debts incurred by Federal MDAs in the sum of 566,754,584.31 dollars, 98,526,012.00 Pounds and N226,281,801,881.64 through the issuance of promissory notes. “The Honourable Attorney-General of the Federation and Minister of Justice and the Honourable Minister of Finance, Budget and National Planning shall provide any information that may be required by the Senate for the consideration of this request.” Senate also at plenary passed for first reading five bills. The bills include Federal Medical Centres Act Amendment Bill 2023 sponsored by Sen.Gobir Ibrahim (APC- Sokoto), Federal Teaching Hospital, Markurdi, Benue State Establishment Bill, 2023 by Sen.Gobir Ibrahim (APC- Sokoto), Others are Central Bank of Nigeria (CBN) Act Amendment Bill, 2023 by Senator Gobir Ibrahim (APC- Sokoto), and Federal University of Petroleum Technology, Ohaji-Egbema Establishment Bill, 2023 by Senator Rochas Okorocha.

Efficient legal system will boost economy- CBN

*Says it will attract foreign investments The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele has said that an efficient national judicial system will strengthen the confidence in the economy and attract foreign investments. Emefiele said this on Wednesday in Abuja at the 2023 Capacity Building Workshop on Banking and Financial Services Sector for Judicial Workers organised by the CBN, in collaboration with the National Judicial Institute (NJI). Discussing the theme: “The Law and Modern Banking: Adapting to Issues Regarding Digital Products and Services; Regulation of Payment Services Banks and Other Emerging Digital Payment Services”, Emefiele said investors are more willing to invest in jurisdictions where the rule of law takes prominence in shaping business and investment decisions. He said that the judiciary helps to ensure that all parties adhere to legal ethical standards, while individuals and businesses can also seek relief through the law courts on violations of agreements. “They can also be sure that disputes will be treated swiftly and fairly in accordance with the prevailing laws. “The presence of a fair and just legal system will help in attracting much-needed foreign investments. “Such investments will help in updating our distinguished legal community on emerging trends in the financial services industry,” he said. According to him, this is with a view to enhancing their knowledge on how to build legal frameworks that will contribute to the growth of the financial services industry. He added that it would also help them deal with some emerging risks associated with such innovations. “The judiciary, invariably, contributes to the effectiveness of monetary policy, financial system stability, economic growth and development through their interpretation of statutes and sometimes, giving effect to acts of governments and its agencies,”he said. Also speaking, the Chief Justice of Nigeria, Justice Olukayode Ariwoola said that the workshop was designed to explore strategies that will aid the legal system in adapting to rapid and significant changes in the banking sector. According to Ariwoola, these transformations, when fully harnessed and managed. will further strengthen our financial system in terms of providing new opportunities and thereby bringing stability and growth to the financial sector. “The theme of this workshop, no doubt carries tremendous significance in our contemporary society. “We are currently witnessing a time of rapid technological advancements, particularly within the financial sector, where conventional practices are swiftly being displaced by digital products and services that offer unparalleled convenience and efficiency. “In light of recent developments, I am of the view that it is expedient to have a comprehensive understanding of the regulatory framework put in place by the CBN. “We should juxtapose it with other relevant laws and regulations establishing the legal frameworks governing digital products and services,” he said. He cited the Cybercrime Act 2015; the Nigeria Data Protection Regulation (NDPR), and the BOFIA Act, 2007 as notablee examples of such regulations. ” These frameworks provide comprehensive directives concerning crucial aspects such as data protection, cyber security, and consumer protection in the context of digital activities. “They delineate the specific criteria and responsibilities that digital service providers must adhere to” Ariwoola said. The Administrator of the NJI, Justice Salisu Abdullahi, said that the workshop was aimed at equipping judicial officers with the indispensable knowledge and skills required to navigate the intricate landscape of modern banking. According to Abdullahi, this aligns perfectly with the mandate of the NJI in an era where technology is driving unprecedented transformation in the financial sector. “It is of utmost importance that the judiciary remains up-to-date with the latest developments and trends to carry out its duties effectively,” he said.

CBN revokes licenses of 132 MfBs, others

The Central Bank of Nigeria (CBN) has announced revocation the licences of 132 Microfinance Banks, three Finance Companies and four Primary Mortgage Banks across the country. The revocation is contained in a gazetted circular signed by the CBN Governor, Mr Godwin Emefiele, in Abuja. According to Emefiele, the Microfinance Banks, Finance Companies and Primary Mortgage Banks listed in the gazette ”ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of 6 months”. He said that they also failed to fulfil or comply with the conditions subject to which their licences were granted. “(They) failed to comply with the obligations imposed upon them by the CBN in accordance with the provisions of Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5. “In exercise of the powers conferred on the CBN under Section 12 of BOFIA 2020, Act No.5, I hereby revoke the licences of the Microfinance Banks, Finance Companies and Primary Mortgage Banks stated,” Emefiele said. The the Finance Companies affected are HHL Invest & Trust Limited, TFS Finance Limited, and Treasures & Trust Limited. The Primary Mortgage Banks affected are Resort Savings & Loans, Safetrust Mortgage Bank, and Adamawa Savings & Loans. Some of the 132 MfBs are Atlas Microfinance Bank, Bluewhales Microfinance Bank, Everest Microfinance Bank, Igangan Microfinance Bank and Mainsail Microfinance Bank. See full list: 1. ATLAS MICROFINANCE BANK 2. BLUEWHALES MICROFINANCE BANK 3. EVEREST MICROFINANCE BANK 4. IGANGAN MICROFINANCE BANK 5. MAINSAIL MICROFINANCE BANK 6. MERIT MICROFINANCE BANK 7. MINNA MICROFINANCE BANK 8. MUSHARAKA MICROFINANCE BANK 9. NOPOV MICROFINANCE BANK 10. OHON MICROFINANCE BANK 11. PREMIUM MICROFINANCE BANK 12. ROYAL MICROFINANCE BANK 13. STATESMAN MICROFINANCE BANK 14. SUISSE MICROFINANCE BANK 15. VIBRANT MICROFINANCE BANK 16. VIRTUE MICROFINANCE BANK 17. ZAMARE MICROFINANCE BANK 18. NORTH CAPITAL MICROFINANCE BANK 19. CHIDERA MICROFINANCE BANK 20. EXCELLENT MICROFINANCE BANK 21. NI’IMA MICROFINANCE BANK 22. COSMOPOLITAN MICROFINANCE BANK 23. PROGRESSIVE LINK MICROFINANCE BANK 24. TRUST ONE (FOMERLY DESMONARCHY) 25. EKUOMBE MICROFINANCE BANK 26. FIRST INDEX MICROFINANCE BANK 27. OLA MICROFINANCE BANK 28. ULI MICROFINANCE BANK 29. VERDANT MICROFINANCE BANK 30. AGULERI MICROFINANCE BANK LIMITED 31. APEKS MICROFINANCE BANK LIMITED 32. FAHIMTA MICROFINANCE BANK LIMITED. 33. MANNY MICROFINANCE BANK LIMITED 34. REALITY MICROFINANCE BANK LIMITED 35. SURBPOLITAN MICROFINANCE BANK LIMITED 36. ONYX MICROFINANCE BANK LIMITED 37. OSINA MICROFINANCE BANK LIMITED 38. OLOFIN-OWENA MICROFINANCE BANK LIMITED 39. ZIKADO MICROFINANCE BANK LIMITED 40. PRUDENTIAL CO-OPERATIVE MICROFINANCE BANK LIMITED 41. PENIEL MICROFINANCE BANK LIMITED 42. TARABA MICROFINANCE BANK LIMITED 43. BRASS MICROFINANCE BANK LIMITED 44. MICHIKA MICROFINANCE BANK LIMITED 45. NDIAGU MICROFINANCE BANK LIMITED 46. NORTHBRIDGE MICROFINANCE BANK LIMITED 47. FCT MICROFINANCE BANK LIMITED 48. OMU-ARAN MICROFINANCE BANK LIMITED 49. CHERISH MICROFINANCE BANK LIMITED 50. BIPC MICROFINANCE BANK LIMITED 51. DANELS GLOBAL MICROFINANCE BANK LIMITED 52. BANCORP MICROFINANCE BANK LIMITED 53. MANNA MICROFINANCE BANK LIMITED 54. MONEYWISE MICROFINANCE BANK LIMITED 55. MERCURY MICROFINANCE BANK LIMITED 56. NEW AGE MICROFINANCE BANK LIMITED 57. PEARL MICROFINANCE BANK LIMITED 58. ZAWADI MICROFINANCE BANK LIMITED 59. SEED CAPITAL MICROFINANCE BANK LIMITED 60. EDUEK MICROFINANCE BANK LIMITED 61. EKSU MICROFINANCE BANK LIMITED 62. DAKINGARI MICROFINANCE BANK LIMITED 63. OGOJA MICROFINANCE BANK LIMITED 64. NWABOSI MICROFINANCE BANK LIMITED 65. NUTURE MICROFINANCE BANK LIMITED 66. ACTIVE POINT MICROFINANCE BANK LIMITED, AMOYE MICROFINANCE BANK LIMITED 68. BOLUWADURO MICROFINANCE BANK LIMITED 69. IYEDE MICROFINANCE BANK LIMITED 70. MAYFAIR MICROFINANCE BANK LIMITED 71. CALABAR MICROFINANCE BANK LIMITED 72. IGHOMO MICROFINANCE BANK LIMTED 73. HACKMAN MICROFINANCE BANK LIMITED 74. IDESE MICROFINANCE BANK LIMITED 75. BRIDGEWAY MICROFINANCE BANK LIMITED 76. GRASSROOT MICROFINANCE BANK LIMITED 77. SURELIFE MICROFINANCE BANK LIMITED 78. TIJARAH MICROFINANCE BANK LIMITED 79. IC-GLOBAL MICROFINANCE BANK LIMITED 80. EJIAMATU MICROFINANCE BANK LIMITED 81. BRIYTH COVENANT MICROFINANCE BANK LIMITED 82. NANKA MICROFINANCE BANK LIMITED 83. CUB MICROFINANCE BANK LIMITED 84. BFL MICROFINANCE BANK LIMITED 85. UMUNNE MICROFINANCE BANK LIMITED 86. OROKE MICROFINANCE BANK 87. ALKALERI MICROFINANCE BANK LIMITED 88. CROWNED EAGLE MICROFINANCE BANK LIMITED 89. UNIFA MICROFINANCE BANK LIMITED 90. DADINKOWA MICROFINANCE BANK LIMITED 91. IFESOWAPO MICROFINANCE BANK LIMITED 92. OAF MICROFINANCE BANK LIMITED 93. BAMA MICROFINANCE BANK LIMITED 94. NGALA MICROFINANCE BANK LIMITED 95. IWOAMA MICROFINANCE BANK LIMITED 96. KADA MICROFINANCE BANK LIMITED 97. KEFFI MICROFINANCE BANK LIMITED 98. NUT-ENDWELL MICROFINANCE BANK LIMITED 99. FIRST MULTIPLE MICROFINANCE BANK LIMITED 100. SBDC MICROFINANCE BANK LIMITED 101. OROS CAPITAL MICROFINANCE BANK LIMITED, OZIZZA MICROFINANCE BANK LIMITED B 465 103. PRIMERA CREDIT MICROFINANCE BANK LIMITED 104. IFEANYICHUKWU MICROFINANCE BANK LIMITED 105. IHIOMA MICROFINANCE BANK LIMITED 106. JOSAD MICROFINANCE BANK LIMITED 107. AKPO MICROFINANCE BANK LIMITED 108. AIYEPE MICROFINANCE BANK LIMITED 109. ABC MICROFINANCE BANK LIMITED 110. STAR MICROFINANCE BANK LIMITED 111. PURPLE MONEY MICROFINANCE BANK LIMITED 112. UTUH MICROFINANCE BANK LIMITED 113. STALLION MICROFINANCE BANK LIMITED 114. KJL MICROFINANCE BANK LIMITED 115. CREDIT AFRIQUE MICROFINANCE BANK LIMITED 116. COWRIES MICROFINANCE BANK LIMITED 117. LAWEBOD MICROFINANCE BANK LIMITED 118. MABINAS MICROFINANCE BANK LIMITED 119. BUSINESS SUPPORT MICROFINANCE BANK LIMITED 120. OGBE-AHIARA MICROFINANCE BANK LIMITED 121. OLOFIN MICROFINANCE BANK LIMITED 122. OBOSI MICROFINANCE BANK LIMITED 123. FIYINFOLU MICROFINANCE BANK LIMITED 124. BISHOPGATE MICROFINANCE BANK LIMITED 125. AWKA MICROFINANCE BANK LIMITED, ZIGATE MICROFINANCE BANK LIMITED 127. ESAN MICROFINANCE BANK LIMITED 128. ENUGU-UKWU MICROFINANCE BANK LIMITED 129. ECHO MICROFINANCE BANK LIMITED 130. ALLY MICROFINANCE BANK LIMITED 131. NETWORK MICROFINANCE BANK LIMITED 132. AWGBU MICROFINANCE BANK LIMITED. LIST OF FINANCE COMPANIES LICENCES REVOKED: 1. HHL Invest & Trust Limited 2. TFS Finance Limited 3. Treasures & Trust Limited LIST OF PRIMARY MORTGAGE BANKS LICENCES REVOKED 1. RESORT SAVINGS & LOANS 2. SAFETRUST MORTGAGE BANK 3. ADAMAWA SAVINGS & LOANS 4. KOGI SAVINGS & LOANS

CBN unveils ‘SabiMONI’ platform to promote financial literacy, inclusion

The Central Bank of Nigeria (CBN) has unveiled an e-learning platform, SabiMONI to promote financial literacy and to deepen financial inclusion. Speaking at the ceremony, the CBN Governor, Mr Godwin Emefiele said that the platform was a fully digital national e-learning platform that provided a knowledge base for financial literacy. According to him, SabiMONI is aimed at providing individuals with the opportunity to be trained and to become Certified Financial Literacy Trainers (CFLT) through self-service. “The platform is aimed at supporting our efforts toward ramping up the number of experts that can be used to drive financial education in the country and perhaps beyond. “One of the key drivers of financial inclusion today, is no doubt financial literacy. “It is a prerequisite for greater financial inclusion, which would lead to the stability of the financial system and ultimately economic growth and development,” he said. Emefiele said that the absence of or low levels of financial literacy constituted an impediment to financial inclusion. “In other words, the pace of financial inclusion is directly related to the level of financial literacy and financialcapability.’’ He said that to address the financial inclusion gaps, the National Financial Inclusion Strategy 2022, identified increasing adoption andusage of financial services in priority demographics. He said that such demographics comprised of the most vulnerable segments such as women, youth, MSMEs and rural dwellers. “And especially, the Northern part of the country as well as expansion of digital financial services and platforms amongst its strategic priority areas. “To enable us to achieve these, we must take deliberate steps to upscale financial capability through financial education programmes. “The shortage of skilled and experienced persons to drive financial education remains a major hindrance. “Interestingly, the National Financial Inclusion Strategy 2022 places high priority on financial and digital learning. “This will serve as a strategy that would enable the creation of a conducive environment for serving or ensuring the inclusion of the most excluded groups,” he said.