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World Bank set to extend FG’s access to $750m loan



The Federal Government is on the brink of getting a one-year extension to access the World Bank’s $750m concessional loan for Nigeria’s COVID-19 Action Recovery and Economic Stimulus on behalf of the 36 state governments and the Federal Capital Territory.

The World Bank Task Team Leader for the NG-CARES, Professor Foluso Okunmadewa, confirmed the development in Ibadan, Oyo State, during the maiden town hall meeting for stakeholders under the NG-CARES programme.

Okunmadewa, while speaking at the event, said 29 states and the FCT had so far earned reimbursement after deducting the initial advance, adding that seven states earned no reimbursement.

He noted that the World Bank would continue to allow access to funds as long as it sees evidence of the continued commitment of state governments to disbursements of the funds.

The Minister of State for Budget and National Planning, Clem Agba, in his remarks, said the NG-CARES programme had impacted the lives of over two million direct beneficiaries in the country, adding that the development was in line with the vision of the President to lift 100 million Nigerians out of poverty within 10 years.

Represented by the Chairman of the NG-CARES Technical Committee, Reverend Aso Vakporaye, Agba said the federal government is committed to restoring the livelihoods of poor and vulnerable Nigerians, noting that the extension of the programme was crucial towards solving poverty in the country.

Recall that during the challenges induced by the COVID-19 pandemic, the federal government accessed a World Bank concessional loan of $750m on behalf of the 36 states and the FCT, to run from 2021-2023.

The loan was to stimulate the local economy and increase households consumption among the poor and vulnerable segments of the society.

Money market

Effective assets, liabilities management critical in promoting banking stability — NDIC



By Matthew Denis

The Chief Executive Officer and Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Hassan Bello has disclosed that Effective management of assets and liabilities is critical in promoting stability of the banking operation.

The MD of NDIC made this known at the two days SEC Nigeria-IFSB international Forum held in Abuja on Thursday.

He said, “For the Nigeria Deposit Insurance Corporation (NDIC), our mandate includes deposit guarantee, bank supervision, failure resolution and bank Liquidation.

“This mandate is principally geared at ensuring depositors’ confidence and financial system stability. However, financial system stability is a collective responsibility of the regulators, supervisors and operators.

“While the operators have the duty to play their game according to the rules, the supervisors and regulators on the other hand have the responsibility to provide the enabling framework and guiding principles within which the operators are expected to operate.”

Mr Hassan explained that the NDIC as a deposit insurer and banking supervisor is significantly affected by the activities of the banks particularly in the area of risk management practices.

“Risk management must be comprehensive and should cover all aspects of risks including but not limited to operational, market, credit and liquidity risks.”

According to him, their regular reviews of the banks’ risk management practices showed significant improvement since the adoption of Risk Based Supervision (RBS) Framework by the CBN/NDIC.

He stressed that effective management of assets and liabilities is critical in promoting stability of the banking operation as significant maturity mismatch can prevent banks from meeting obligations, including its ability to respond to depositors’ demand.

“This challenge largely arises as a result of the significant mismatch between the tenors of the available funding to the banks and the tenors required by the seekers of funds. Typically, while the primary source of funds for our banks is short term in nature, the demand side on the other hand is significantly medium to long term.

“This, therefore, results in maturity mismatch causing high vulnerability to risks and by extension safety and stability of the banking sector.

“As regulators and supervisors within the financial sector, our concern would surely be beyond managing the above risks. We must deeply think on how to create enabling policies and frameworks that will support the supply side for our banks.

“In this regard, deposit liabilities that are predominantly short term will not be adequate in providing the required portfolio of funding for the banks to support the real economy with its long term funding needs.

“The question we must therefore ask ourselves, is, how and where should the long term funding be sourced? Non-interest Capital market (NICM) plays a greater role in the provision of long-term financing for the real economy including developmental and infrastructure projects.

“Robust NICM provides products in equity markets, sukuk markets and pooled investment vehicles that provide practical solutions to challenges identified in the financing of real sector and infrastructure projects.”

The MD revealed the NDIC is therefore proud to be associated with the SEC on this giant initiative.

 ”It is our firm belief that, this Roundtable, would provide a platform for brilliant ideas and experience-sharing, that will open our financial system to foreign direct investments and foreign portfolio investments that will provide both the required long term financing need for our banks, the real economy as well as support foreign exchange liquidity thereby promoting the stability of the financial system not only in the short term but in the medium to long term, in line with the Renewed Hope Agenda of the President.”

He noted that the role of an effective, liquid and well-functioning capital market, cannot be overemphasised in promoting capital formation and economic growth.

Backing this up, he said, “Studies have indicated strong correlation between capital market and economic growth. Broad and deep capital market plays a significant role in supporting and promoting savings mobilisation, resource allocation and diverse sources of funding to the real-economy, thereby facilitating better diversification and management of risk.

“It is instructive to note that a robust capital market is a result of deliberate efforts by the relevant stakeholders. There must be a thoughtful determination by the policy makers to create the enabling environment that allows capital market development to thrive.

“I would like to appreciate the foresight of the SEC’s Management Team for organising this international roundtable targeted at further deepening and broadening our capital market. The global opportunities offered by the non-interest capital market are enormous and can only be fully harnessed if and only when we are able to address some of the challenges inhibiting its growth.

“The Commission as the national regulator of the capital market has commendably done so much in this regard as more still needs to be done in conjunction with relevant stakeholders at both national and regional levels particularly in the area of regional regulatory and policy coordination.”

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Money market

DMO encourages residents to invest in FGN securities



The Debt  Management Office (DMO)  has urged the people of Niger State to consider investing in Federal Government of Nigeria (FGN) securities.

This call to action was made during a public awareness event held in Minna, which was a collaborative effort between the DMO and CSL Stockbrokers Group.

The Director-General of the DMO, Patience Oniha, whose message was conveyed by the Head of the Strategy Programme Department at DMO, Ms. Elizabeth Ekpeyong, emphasised the safety of investing in FGN securities.

Oniha assured potential investors that their capital would be secure, highlighting that such investments are protected by law and carry no risk of loss.

The DMO’s initiative aims to bolster the financial future of Niger State residents by presenting FGN securities as a reliable investment option that not only preserves wealth but has the potential to increase it. The event underscored the government’s commitment to fostering economic growth and financial literacy among its citizens.

Investors were reassured of the stability and legal backing of these securities, making them an attractive option for those looking to secure their financial future.

The DMO’s outreach is part of a broader strategy to deepen the domestic bond market and encourage local investment in government-backed securities.

“Investing in Federal Government securities and bonds will increase you financially, and it is the best way to invest your money.

“You are not going to lose anything as long as the federal government is concerned,” she said.

She said that such investment would also help the federal government raise more funds to attract more foreign investors into the country.

Oniha advised the public to invest in the government securities and bonds facilities, as they serve as lifetime financial security for the future.

Managing Director, CSL Stockbrokers Limited, Mr Abiodun Fagbulu explained that the federal government securities were financial instruments issued by the DMO on behalf of the government.

Fagbulu, who was represented by Lead Sales, Northern Region of CSL, Mrs Foluke Samuel assured that the facilities were safe because the federal government was serving as the insurance cover for any investor.

“FGN securities are backed by law, so when you invest, you get a steady flow of income,” he said.

He said that the facilities included the Nigeria treasury bills, FGN bonds, FGN savings bonds, the Sovereign Sukuk and FGN green bonds.

Reacting, Mr Anthony Akuh, a business man and participant, said that he had no knowledge of the securities and bonds but for the opportunity of the awareness programme.

Akuh commended the DMO and CSL for bringing the awareness programme to Minna.

“I will approach a stockbroker immediately for possible investment,” he said.

Recall the programme which was inaugurated in Lagos in March 2022, rounded up its 2023 outing in Minna.

It had also been held in Enugu, Ibadan, Kano, Yola, Umuahia, Gombe, Osogbo, Port Harcourt, Benin, Uyo, Asaba, Maiduguri, Abeokuta and Makurdi.

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CBN reviews service charter to drive ease of doing business



By Sodiq Adelakun

In a significant move to bolster the ease of doing  business in Nigeria, the Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso, has officially approved a revised “Service Charter” for the nation’s apex bank.

This strategic initiative is a direct response to the mandates of the Business Facilitation Act 2022, which aims to streamline business operations and enhance customer service delivery across the country.

The CBN announced on Thursday that the newly reviewed charter is designed to establish a clear framework for interactions between the bank and its external stakeholders. By adhering to the provisions of the charter, the CBN commits to aligning with the directives set forth by SERVICOM, the government agency responsible for promoting efficient and effective service delivery in public offices.

The implementation of the service charter is expected to mark a new era of transparency and accountability in the CBN’s operations, ensuring that the bank’s services are delivered in a customer-centric manner.

This development is anticipated to have a positive impact on the Nigerian business landscape, fostering a more conducive environment for both local and international investors.

Governor Cardoso’s endorsement of the service charter underscores the CBN’s dedication to upholding the principles of the Business Facilitation Act 2022 and its commitment to driving progress in Nigeria’s economic landscape.

“The document clearly outlines the bank’s mandates, vision, mission, and core values.

“It contains the list of services offered by the bank through its various departments and the service standards for each service.

“The service charter also includes a standardised customer complaints form for reporting service failures as well as a mechanism for addressing failures in any of the bank’s services,” it stated.

It added that the service charter reiterated CBN’s commitment to effective and prompt service delivery to its stakeholders and to its customers.

“It enables our customers to know the range of services provided by the bank as well as the standards at which these services would be provided.

“It equally states redress procedures in the event of service failure from any of our service windows.

“The charter applies to all stakeholders and customers of the bank,” it stressed.

In the foreword to the reviewed document, Cardoso reiterated CBN’s commitment to providing more responsive and citizen-friendly governance through quality service delivery that is efficient, accountable and transparent.

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