Nigeria’s Central Bank issues new forex exchange directives to tame abuse by dealers

NIGERIA – The Central Bank of Nigeria has issued new directives aimed at eliminating foreign exchange abuse and other practices by dealers which affect goods purchased by the average Nigerian consumers. In a circular addressed to foreign exchange dealers, the Central Bank of Nigeria directed authorized dealers to desist from opening of Form M whose payments are routed through a buying company/agent or any other third parties. CBN further directed that all authorised dealers to only open Form M for Letters of Credit, bills for collection and other forms of…

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Nigeria’s central bank to form US$39B company focused on infrastructure upgrade projects

NIGERIA – The Central Bank of Nigeria (CBN) is set to form a US$39.4 billion infrastructure development company which will focus on investment in the country’s critical infrastructure. This is after the apex financial institution secured the Federal Government’s approval to set up the company in collaboration with the Sovereign Wealth Fund and the African Finance Corporation. The venture, which is expected to leverage local and international funds, is projected to cover an initial 5-year period, according to a report by Nairametrics. This entity, according to a disclosure by CBN…

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Non-performing loans held by Nigerian banks drop to US$3.1bn in spite of COVID-19- CBN says

NIGERIA – The Central Bank of Nigeria has reported that Nigerian banks have made tremendous steps towards reducing the amount of non-performing loans in their inventory despite the economic challenges occasioned by COVID-19 pandemic. According to the latest figures from CBN, banks’ non-performing loans stood at N1.2tn (US$3.1 billion) as of the end of June. This figure according to CBN amounted to about 6.4 per cent of the gross credit of the banks to the economy which stood at N18.9tn as of the period under review. “The committee noted the…

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Maize Farmers Association of Nigeria secure US$41.2m financing from CBN

NIGERIA – The Maize Farmers Association of Nigeria (MFAN) has disclosed that it has secured N16billion (US$41.2m) funding from the Central Bank of Nigeria for the 2020/2021 planting season. This comes after the ban on importation of maize by the apex ban to boost local production, stimulate a rapid economic recovery, safeguard rural livelihoods, and increase jobs which were lost as a result of the ongoing COVID-19 pandemic. CBN in a recent memo had directed all authorized dealers to discontinue processing of the Form M requesting for the importation of Corn…

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Central Bank of Nigeria funds production of nine agricultural commodities with US$1.1bn

NIGERIA – The Central Bank of Nigeria (CBN) has targeted to fund the value chains of nine agricultural commodities in the 2020 wet planting season to the tune of N432bn (US$1.1bn) to prevent the country from sliding into a recession, as is currently being experienced in some major economies of the world. The commodities to be funded include rice, cotton, oil palm, tomato, cassava, poultry, fish, maize, cocoa and livestock/diary. The funding would be sent through designated participating banks, targeting over 1.1 million farmers, cultivating over one million hectares of…

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Nigeria’s central bank launches healthcare scheme to boost local manufacturing of drugs

NIGERIA – The Central Bank of Nigeria (CBN) has unveiled a grant Scheme to help strengthen the public healthcare system with innovative financing of research and development (R&D) in new and improved drugs, vaccines and diagnostics of infectious diseases in response to the Covid-19 pandemic in the country. The Scheme, called the Healthcare Sector Research and Development Intervention Scheme (HSRDIS) is intended “to boost domestic manufacturing of critical drugs and vaccines” within the country, as the Covid-19 pandemic that has hit the country continues to grow, showcasing the need for…

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Foreign assets of Nigerian Banks rise to US$39m, new CBN report shows

NIGERIA –  Foreign as of Nigerian based banks rose slightly to N14.19tn (US$38.82m) as of the end of November, 2019, according to the Central Bank of Nigeria. The bank stated in its economic report for the fourth quarter of 2019 that the “foreign assets (net) of the banking system grew by 2.0 per cent to US$38.82m at end-November 2019, in contrast to the 24.7 per cent and 2.2 per cent decline at the end of third quarter 2019 and fourth quarter of 2018 respectively.” The bank explained that the rise,…

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Nigeria to offer rice farmers affordable loans to boost production

NIGERIA – The Central Bank of Nigeria has said it would offer single-digit loan to rice farmers in the Niger Delta area to boost their production. According to a statement signed by the Head, Press and Public Relations at the Ministry of Niger Delta Affairs, Patricia Deworitshe, farmers participating in the CBN initiative will also benefit from index insurance. Punch Nigeria reported that the statement was issued after a second collaborative meeting between the Minister of Niger Delta Affairs, Godswil Akpabio, and representatives of the CBN in Abuja. According to…

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Only six firms will be allowed to import milk in Nigeria, CBN says

NIGERIA – The Central Bank of Nigeria has given approval to six dairy companies to import milk into the country. CBN in a statement signed by Director, Trade and Exchange Department, Dr Ozoemena Nnaji said that the move is part of efforts aimed at bridging the supply gap of milk. This move comes even as the government pursues its backward integration strategy to make the country self-sufficient in milk production. Nigeria’s apex bank said the approval was given in line with its objective to increase and improve the local production…

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Nigeria’s Central Bank raises CRR rate to 27.5 percent to curb rising inflation

NIGERIA- The Central Bank of Nigeria, CBN, has increased the Cash Reserves Ratio, CRR, of banks from 22.5 per cent to 27.5 per cent. The alteration was effected by the highest policy making committee of the Bank known as the Monetary Policy Committee of the CBN. The Cash Reserve Ratio is the share of a bank’s total deposit that commer in the form of liquid cash. The CRR is used by the Central Bank to ensure that a part of customer deposits with commercial banks is constantly maintained at the…

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