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CBN Urges States to Establish Industry Banks

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The Central Bank of Nigeria has asked state governments that do not have industry banks to facilitate the establishment of such to speed up industrialisation and economic development in the country.

The Assistant Director, Development Finance Department of CBN, Abuja, Mr. Babatunde Ogunleye, said this in Uyo while fielding questions from journalists.

He stated that the bank, with a mandate to finance the processing of raw materials and industrialisation of the nation, was better positioned to aid small and medium-scale enterprises.

He noted that it is not uncommon for indigenes of states that do not have the bank to go to the nearest state to present proposal or seek assistance.

Ogunleye, who was in the state for public enlightenment of the residents of Akwa Ibom on the activities of the CBN, said that if there was an industry bank in the state, the speed of doing business would be faster and cost-effective.

“You can easily work to the next street where there is industry bank, meet the manager, present your proposal and get considered, instead of maybe going to Calabar or any other nearer state; that is one of the biggest gains of having the bank.

“Another gain is the speed of doing business; those who are producing raw materials will quickly get their products evacuated and get paid.

“The bank here will get funded because payment will get to all these banks; all these things will amount to improving and increasing standard of living for citizens and government will make money quietly through tax revenue because if business and commerce move, everybody will be happy,” he said.

According to him, the organised private sector and associations are the right bodies to partner  government to ensure the industry bank is established in their states.

It was learnt that the sensitisation workshop was organised in all the states of the federation to acquaint members of the public with the activities of the CBN.

The three-day workshop with the theme, “Promoting financial stability and economic development” was attended by farmers, cooperative societies, business entrepreneurs, industrialists, market women, bankers, civil servants and government across the state.

A Senior Manager and Director of Consumer Protection Department of CBN, Sani Bako Mohammed, said customers had the right to information, choice, safety, redress, privacy and confidentiality and good service from any bank of choice.

He revealed that the Consumer Protection Department of the CBN had investigated 8,044 complaints out of which 354 complaints were against commercial banks and other financial institutions in the country.

He said that the CBN had successfully resolved complaints that involved N35bn between the banks and their customers.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday

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Oil prices rose further on Wednesday as hope for an effective COVID-19 vaccine and the news that the United States of America’s President-elect, Joe Biden has begun transition to the White House bolstered crude oil demand.

Brent crude oil, a Nigerian type of oil, gained 1.63 percent or 78 cents to $48.64 per barrel at 11:50 am Nigerian time on Wednesday.

The United States West Texas Intermediate (WTI) crude oil rose by 1.36 percent or 61 cents to $45.52 per barrel.

OPEC Basket surged the most in terms of gain, adding 3.16 percent or $1.37 to $44.75 per barrel.

This was after AstraZeneca, Moderna and Pfizer-BioNTech announced the positive results of their trials.

Moderna and Pfizer had claimed over 90 percent effective rate in trials while AstraZeneca said its COVID-19 vaccine was 70 percent effective in trials but could hit 90 percent going forward.

The possibility of having a vaccine next year increases the odds that we’re going to see demand return in the new year,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Also, the decision of President-elect Joe Biden to bring Janet Yellen, the former Chair of Federal Reserve, back as a Treasury Secretary of the United States is fueling demand and strong confidence across global financial markets.

President-elect Biden’s cabinet choices, particularly Janet Yellen’s Treasury Secretary position, are adding to upside momentum across a broad space of asset classes,” said Jim Ritterbusch of Ritterbusch and Associates.

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Economy

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

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The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

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World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

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The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

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