The Federal Government has stated that it will end the Conditional Cash Transfer (CCT) by the end of December 2022.
The conditional cash transfer is one of the federal government’s social intervention schemes to help ameliorate the challenges of poor Nigerians and the most vulnerable.
According to the head of the National Cash Transfer Office (NCTO), Dr Ibraheem Adam, the government intervention programme which was launched in 2016 has reached a total of 1,940,325 beneficiaries.
The beneficiaries who are often women, aged persons and the most vulnerable people are drawn from 609 local governments, 6,272 wards, and 48,789 communities.
Dr Ibrahim, who stated this during an interview with the News Agency of Nigeria (NAN), commended President Muhammadu Buhari and the Minister of Humanitarian Affairs, Disaster Management and Social Development, Hajia Safiya Umar Farouq, noting that the money came in at a time poverty became endemic in the history of Nigeria.
He added that his office also oversee how the beneficiaries were grouped and mobilised for training on how to save and manage their money.
“We bring them into groups where they do rotational savings and contribution which metamorphosed into cooperative societies which they also own and by doing that they can also empower themselves.”
“The beneficiaries are mentored to properly utilise the knowledge gained in the cause of the capacity building at their doorstep,” he added.
Investors King understands that the Conditional Cash Transfer (CCT) is ending at a time when the National Bureau of Statistics (NBS) has estimated that about 63 percent of persons living in Nigeria (133 million people) are multidimensionally poor with 72 percent living on the rural communities.
The World Bank had also estimated that 4 in 10 Nigerians live below the national poverty line
A larger percentage of the beneficiaries of conditional cash transfers live in rural areas. The end of the conditional cash transfer could aggravate the financial condition of some of the most vulnerable.
Private Sector Credit Hits Record High of N76.94 Trillion in January 2024 – CBN Report
Private sector credit in Nigeria reached a record N76.94 trillion in January 2024, according to the latest report from the Central Bank of Nigeria (CBN).
This represents a 85.2% year-on-year increase from N41.54 trillion reported in January 2023.
The CBN’s Money and Credit Statistics report unveiled that credit to the private sector experienced a substantial month-on-month surge of 23.06%, or N14.42 trillion, from N62.52 trillion in December 2023.
This surge occurred amid the implementation of the CBN’s policy to unify the naira exchange rate.
Analysts attribute the reported N76.94 trillion credit to the private sector to the recent depreciation of the naira against foreign currencies.
The naira closed at N1,356.88 per dollar in January 2024, representing a 50.87% decline or N457.49 against the dollar compared to December 2023.
This depreciation compelled banks to extend credit to major corporations to meet the CBN’s mandated Loan-to-Deposit Ratio (LDR) threshold.
The CBN’s decision to resume the enforcement of the LDR policy, effective July 31, 2023, further propelled banks to increase lending to customers, stimulating the real sector of the economy.
With the CRR mechanism updated, banks with an LDR below the prescribed level faced a 50% lending shortfall penalty.
Experts suggest that the significant increase in private sector credit underscores the growing need for businesses to secure funds amidst economic uncertainties and exchange rate volatility.
It also signifies banks’ efforts to comply with regulatory requirements and support economic growth initiatives.
As Nigeria navigates its economic landscape, stakeholders anticipate further developments in credit dynamics and monetary policies to sustain financial stability and stimulate economic expansion.
Senate Initiates Probe into N30tn Ways and Means Loans under Buhari Administration
The Nigerian Senate has embarked on a comprehensive investigation into the disbursement and utilization of the N30 trillion Ways and Means loans obtained by the Central Bank of Nigeria (CBN) during the administration of former President Muhammadu Buhari.
The Ways and Means facility allows the CBN to provide financial support to the government to cover budget shortfalls.
The decision to probe the massive loans comes amid concerns about the transparency and accountability surrounding the utilization of these funds, particularly as the country grapples with economic challenges, food crises, rising inflation, and worsening insecurity.
The Senate’s investigation aims to shed light on how the substantial overdrafts from the CBN were acquired and expended under the leadership of former President Buhari.
There is growing apprehension that the indiscriminate spending of the overdrafts, particularly during Godwin Emefiele’s tenure as CBN governor, may have contributed significantly to the current economic predicament facing the nation.
The probe will delve into the details of the N30 trillion overdrafts, with a specific focus on examining the purpose for which the funds were allocated and how they were utilized.
Also, the Senate will scrutinize the N10 trillion disbursed under the Anchor Borrowers Scheme, as well as the utilization of $2.4 billion out of the $7 billion earmarked for forex transactions.
The initiative underscores the Senate’s commitment to ensuring transparency, fiscal responsibility, and prudent financial management in the country’s economic affairs.
It is anticipated that the probe will unearth vital insights into the financial transactions of the past administration, enabling corrective measures to be taken to address any mismanagement or discrepancies discovered.
Foreign Loans Dominate Nigeria’s 2023 Capital Importation, Hits $2.31bn – NBS Report
In 2023, foreign loans dominated Nigeria’s capital importation, according to the latest report from the National Bureau of Statistics (NBS).
The report reveals that out of the total $3.91 billion foreign investment inflow, foreign loans accounted for $2.31 billion, representing 59.1% of the total capital importation.
The NBS data indicates a substantial increase in foreign capital inflow compared to previous quarters.
The final quarter of 2023 saw a notable surge, with foreign capital importation rising from $654.65 million in the third quarter to $1.09 billion.
This surge reflects increased investor confidence and interest in Nigeria’s economic prospects.
However, the dominance of foreign loans in the capital importation landscape raises concerns about Nigeria’s debt profile and sustainability.
While foreign loans can provide crucial funding for development projects and infrastructure, excessive reliance on borrowing poses risks to the country’s fiscal health and economic stability.
It underscores the urgent need for prudent debt management and strategies to diversify funding sources.
The breakdown of the capital importation further reveals that Nigeria received $433.87 million in the first quarter, $771.53 million in the second quarter, $507.71 million in the third quarter, and $594.75 million in the fourth quarter as foreign loans.
The report underscores the importance of addressing structural challenges and creating an enabling environment to attract diverse forms of foreign investment beyond loans.
It emphasizes the need for policies that promote sustainable economic growth, attract foreign direct investment, and reduce reliance on external borrowing.
Forex4 weeks ago
Naira to Dollar Black Market Exchange Rate January 24th, 2024
Billionaire Watch4 weeks ago
MacKenzie Scott Sells Off $10.4 Billion Worth of Amazon Shares
Naira4 weeks ago
Dollar to Naira Black Market Exchange Rate January 26th, 2024
Fintech4 weeks ago
Opay’s Deadline Looms: Users Urged to Update BVN and NIN to Avoid Transaction Restrictions
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate January 25th, 2024
Company News3 weeks ago
UAC Posts N12.7 Billion Profit Before Tax in 2023
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 1st, 2024
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 2nd, 2024