Finance

President Bola Tinubu’s Administration Set to Clear N187.32bn Debt to Local Contractors

Published

1 month ago

August 14, 2023

The administration of President Bola Tinubu is poised to settle a substantial debt of approximately N187.32 billion owed to local contractors in the current year.

This was disclosed in a document titled, ‘Schedule of promissory notes issued by category as of September 30, 2022’ by the Debt Management Office.

A promissory note is a binding debt instrument outlining a written commitment from one party, the issuer or maker of the note, to disburse a specific sum of money to another party, the payee, either upon demand or at a designated future date.

The framework for settling such obligations as enshrined in Section 4 of the Government Promissory Notes Act, stipulates that government promissory notes are to be funded from the general revenue and assets of the federation.

The investigation revealed that two promissory notes were issued to address outstanding liabilities to local contractors. The initial note was released on November 23, 2020, while the subsequent note was issued on July 12, 2021.

According to the document from the Central Bank of Nigeria, the debt repayment will encompass three currencies: the naira, dollar, and euro. The naira component amounts to N57.83 billion, with the dollar accounting for $26.48 million (equivalent to N19.78 billion), and the euro constituting €133.76 million (approximately N109.71 billion).

Both promissory notes are slated for resolution by November 23, 2023, indicating a firm commitment by the government to fulfill its financial obligations to local contractors.

President Bola Tinubu’s administration is thus navigating the path of fiscal responsibility, seeking to address these outstanding debts while bolstering the nation’s infrastructure and fostering a conducive environment for further development.

Up Next

Credit Scoring Services Set to Reach $44 Billion by 2028

Don't Miss

Opay and Kuda Shine Bright: Recognized Among the World’s Top 200 Fintech Companies

Investors King

Comments

Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

18 hours ago

September 22, 2023

Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.

Banking Sector

Currency in Circulation Surges by N1.7 Trillion Amidst Rising Cash Transactions

Published

19 hours ago

September 22, 2023

Investors King

The currency in circulation in Nigeria has surged by N1.7 trillion, driven by a surge in cash transactions.

According to data obtained from the Central Bank of Nigeria (CBN), as of the end of August, the currency in circulation rose to N2.7 trillion.

This substantial increase in currency in circulation comes after a 235.03 percent dip to N982.1 billion as of the end of February 2023 from N3.29 trillion at the close of October 2022, primarily due to the naira redesign policy spearheaded by the CBN.

However, the currency in circulation began its steady ascent once the policy concluded. Cash that had been previously withdrawn from circulation to promote electronic payments was reintroduced into the economy, contributing to this significant boost.

The data obtained from the CBN reveals that a whopping N2.3 trillion was removed from circulation during this period.

The CBN defines currency in circulation as all legal tender currency in the hands of the general public and within the vaults of Deposit Money Banks, excluding the central bank’s vaults.

The CBN further elucidated its methodology, stating that it employed an “accounting/statistical/withdrawals & deposits approach” to calculate the currency in circulation in Nigeria. This approach meticulously tracks the movement of currency in circulation on a transaction-by-transaction basis.

Under this methodology, each withdrawal made by a Deposit Money Bank at one of CBN’s branches results in an increase in currency in circulation (CIC), while each deposit made by a DMB at one of CBN’s branches leads to a decrease in CIC.

This surge in currency in circulation reflects the evolving landscape of financial transactions in Nigeria and underscores the importance of flexible monetary policies in facilitating economic growth and stability.

Finance

Oyo/Osun Customs Command Exceeds Revenue Target, Collects N47.4 Billion in Nine Months

Published

2 days ago

September 21, 2023

Samed Olukoya

The Oyo/Osun Area Command of the Nigeria Customs Service has reported a better-than-expected achievement in revenue collection, exceeding its targets while also making significant seizures of prohibited goods.

Outgoing Customs Area Comptroller, Babajide Jaiyeoba, made this announcement during the recent handover ceremony at the command in Ibadan, Oyo State.

Between January and September, the command generated N47.4 billion in revenue, according to Jaiyeoba. The customs area comptroller attributed this success to the dedicated officers and their unwavering professionalism, urging them to continue working as a cohesive team within the bounds of the law.

Under his leadership, the command also made seizures of prohibited goods valued at N308 million over the past nine months, a testament to their commitment to suppressing smuggling and upholding the customs regulations. Moreover, the command surpassed its revenue target set for the year 2022.

In a smooth transition of leadership, Ben Oramalugo assumed office as the new Comptroller. He emphasized the core duties of customs officers, which include revenue generation, trade facilitation, and the suppression of smuggling. Oramalugo pledged to uphold these mandates and called upon all officers to extend their cooperation to him as they did to his predecessor.

With these recent achievements and a committed leadership transition, the Oyo/Osun Area Command of the Nigeria Customs Service is well on its way to achieving even greater heights in revenue collection and ensuring compliance with customs regulations.