The Central Bank of Nigeria has approved an increase in the maximum amount that could be sold to the Bureau De Change operators from $30,000 to $50,000 per week.
The decision was taken at the Bankers’ Committee meeting, which was held at the headquarters of the CBN on Tuesday in Abuja.
The move is part of the measures aimed at making more foreign exchange available to the BDCs as well as assist in bringing down the huge margin between the naira and the dollar.
The Director, Banking Supervision Department, CBN, Mrs. Tokunbo Martins, addressed journalists shortly after the meeting
She was accompanied during the briefing by the Managing Director,United Bank for Africa, Mr. Kennedy Uzoka; MD, Zenith Bank Plc,Mr Peter Amangbo; MD, Jaiz Bank Plc, Mr Hassan Usman, and the CBN acting Director, Corporate Communications, Mr. Isaac Okoroafor.
Some of the issues discussed at the 328th bankers committee meeting were the state of the economy, financial inclusion and financial literacy, savings mobilisation, and foreign exchange management.
Uzoka, who spoke on the decision taken by the committee on the sale of dollar to the BDCs, said the move was informed by the fact that the country was in a stage where a lot of dollar would be needed to meet financial obligations of overseas students.
Apart from this, he said it was imperative to also increase the weekly sale of dollars to BDCs in order to meet the rising demand of those traveling abroad for business trips.
He said the decision was taken after the committee analysed the feedback it got from the financial market after two weeks of implementing the CBN’s directive to banks to sell forex to BDCs.
The apex bank had in the circular issued two weeks ago directed banks to provide BDCs with a maximum of $30,000 per week.
He said, “The issue of making foreign exchange available to Nigerians has been very topical and the CBN has been working very hard to address this.
“About two weeks ago, a policy was released that made banks to send money to the BDCs and the BDCs are supposed to pass this money to Nigerians for various needs.
“At the meeting today and as expected, we got feedback from the market and the CBN, being a responsive regulator, has decided to move the limit of$30,000 per the BDC to $50,000.
“So, we believe that this development will make more cash available to the BDCs and increase the supply and help drive down the price.”
Increase in Banks’ Bad Loans Caused by Construction Sector
The banking industry saw a 13.6 percent MoM (month on month) increase in bad loans to N2.76 trillion in August 2021, and the Central Bank of Nigeria attributed the increase to the rising loan defaults in the country’s construction sector.
The construction industry is touted to be under intense pressure due to the rise in the prices of building materials.
The Central Bank of Nigeria said this in its August Economic Report, stating that the NPL (Non-Performing Loans) ratio of the banking industry went up to six percent in August, one percentage point more than the five percent regulatory limit.
According to data from the apex bank, the total credit to the domestic economy went up by 2.2 percent to reach N46 trillion in August, from the N44.99 trillion recorded in July. This suggests that the NPL (bad loans) went up to N2.76 trillion in August from N2.43 trillion seen in July, a N330 billion or 13.6 percent increase.
The big rise in NPLs was explained by the CBN as a result of increased loan defaults in the construction sector, which accounted for about 4.7 percent or N905 billion of credit owed to other sectors in August, going up from 4.6 percent of N879 billion back in July.
The apex bank said the increase in the construction sector’s non-performing loans was due to the increase in process of building materials, which made it more difficult for contractors to meet their debt obligations.
Regarding this development, the Managing Director of Built2Suit Limited – a firm of architects – Ibukun Odu, said that apart from the increase in loan defaults, construction firms may have to turn to layoffs in order to reduce overhead cost.
Odu lauded the correctness of the CBN report, stating that a lot of contractors were finding the period extremely difficult. Odu stated that all the main components have witnessed increases of between 75 – 90 percent. He mentioned cement, which used to be sold at N2500 but is now sold between N4000 and N4200.
FirstBank DecemberIssaVybe: Showing Kindness as You Vybe
The roof is already getting raised with #FirstBankIssaVybe, #DecemberIssaVybe campaigns. With FirstBank, it is always a total experience of being woven into the fabric of society from banking at its finest, to music, fashion, arts, and sports. Across the spectrum of human endeavour, FirstBank stands tall behind its over 32 million customers and counting.
As FirstBank makes every day a vybe every December, it is also passionate about ensuring that everyone vybes with kindness. This is in sync with the words of Maurice Elias, Professor of Psychology, “without kindness, our communities, families, schools, and classrooms become places of incivility.” As we get the blast of the season, the 127 years strong banking brand in furtherance of its kindness campaign has created a simple calendar to ease your ability to create a SPARK in the lives of people around you.
At FirstBank, SPARK stands for Start Performing Acts of Random Kindness. The SPARK initiative was launched 4 years ago to make a difference in the nation by seeking to inspire and institutionalize kindness. By encouraging kindness, empathy and consideration for others, SPARK is placing FirstBank at the forefront of the social impact space. The unique way FirstBank is amplifying kindness is through its different directorates and departments. This way the Bank is reaching more communities, touching more lives, and spreading kindness.
The FirstBank kindness drive stands on three (3) pillars of compassion, civility, and charity. Compassion and charity readily come tops when we think about kindness, and FirstBank is championing the cause to also promote civility through the SPARK initiative. Civility covers the aspects of kindness that does not cost you anything to use in igniting the world around you. Imagine as you get to the venue of the next FirstBank’s DecemberIssaVybe show, and you give up a parking lot closer to the event hall to the car behind you?
The global head of marketing and corporate communication of FirstBank, Folake Ani-Mumuney says “At FirstBank, we spend every waking moment working to create meaning in the lives of our customers and publics. We are inspiring kindness because it brings meaning to lives and creates a happier society. So, as you vybe this Yuletide, vybe with kindness.”
Kindness does not have to cost you a kobo, so click here to download and share your kindness calendar for those simple tips to start performing acts of random kindness every day this December.
The need to promote kindness in our homes, schools, fun places, and the society at large cannot be over-emphasized especially with the increased incidence of bullying prevalent around us. In promoting the need for kindness in education and ‘cyber kindness’, FirstBank sponsored two impactful webinars during its corporate responsibility & sustainability week in July 2021. You can click here to access the Zoom recordings of the webinars.
Kindness should be a way of life, and FirstBank is at the forefront. Join the kindness train, vybe with kindness this Yuletide and always!
Stanbic IBTC Emerges Most Outstanding Commercial Bank Brand in Nigeria
Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC, was named the “Most Outstanding Commercial Bank Brand in Nigeria” at the 2021 edition of the BrandCom Awards which was held recently.
The awards, organised by Brand Communicator Magazine recognised brands, organisations and personalities. It took cognisance of their outstanding contributions to the growth and development of the Nigerian economy.
Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, appreciated the organisers for the award, and noted that Stanbic IBTC Bank has over the years provided unparalleled services and designed products tailored explicitly towards meeting the needs of its customers.
Wole noted that the award would spur the organisation to continue providing excellent services to its clients. The awards reaffirm the organisation’s commitment to providing world-class financial services to its network of clients.
The Stanbic IBTC Bank Chief Executive said: “We are delighted to have emerged the “Most Outstanding Commercial Bank Brand” at the BrandCom Awards. This award confirms that we prioritise our customers’ interests because they are the reason we are in business. We pledge to continue developing innovative products and services that are customer-centric, just as we are committed in our quest to continue fulfilling the financial needs of our customers at all times.”
Wole added that Stanbic IBTC would strive to continue exceeding its customers’ expectations.
Stanbic IBTC remains committed to providing a simplified customer-friendly experience that enhances customer satisfaction and exposes them to new trends in the financial services industry.
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