Banking Sector

Dr. Olayemi Michael Cardoso Tapped to Lead Nigeria’s Central Bank in Economic Rejuvenation

Published

1 week ago

September 15, 2023

President Bola Tinubu has taken a significant step in shaping the future of Nigeria’s financial landscape by nominating Dr. Olayemi Michael Cardoso as the new Governor of the Central Bank of Nigeria (CBN).

This announcement, made today by Chief Ajuri Ngelale, Special Adviser to the President (Media & Publicity), marks a pivotal moment in the implementation of President Tinubu’s Renewed Hope agenda.

Dr. Olayemi Michael Cardoso, a distinguished economist and financial expert, is set to lead the CBN for a term of five years, pending confirmation by the Nigerian Senate. His appointment aligns with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which empowers the President to appoint the Governor and Deputy Governors of the CBN, subject to Senate confirmation.

In addition to Dr. Cardoso’s nomination, President Tinubu has also approved the selection of four Deputy Governors for the CBN, each slated for a five-year term, subject to Senate confirmation.

The nominees for these key roles are:

Mrs. Emem Nnana Usoro
Mr. Muhammad Sani Abdullahi Dattijo
Mr. Philip Ikeazor
Dr. Bala M. Bello

The President’s vision for the Central Bank of Nigeria, as outlined in his Renewed Hope agenda, focuses on implementing critical reforms that will bolster confidence among Nigerians and international partners. These reforms are expected to catalyze the restructuring of the Nigerian economy, propelling it towards sustainable growth and prosperity for all.

Dr. Cardoso, a seasoned professional with a wealth of experience in economics and finance, is expected to play a pivotal role in steering the CBN toward achieving these objectives. His leadership will be complemented by the diverse skills and expertise of the newly nominated Deputy Governors.

The nominations will now be subject to the scrutiny and approval of the Nigerian Senate. If confirmed, these appointments will usher in a new era of financial stewardship and economic management in Nigeria.

President Tinubu’s commitment to charting a path of prosperity and economic stability for the nation is reflected in these strategic appointments. Nigerians and international stakeholders will be closely watching as the nominees navigate the Senate confirmation process and, subsequently, take up their roles in shaping Nigeria’s economic future.

As President Tinubu’s administration continues to take shape, the nation anticipates further announcements and initiatives aimed at realizing the goals of the Renewed Hope agenda. The President’s vision for a prosperous Nigeria remains steadfast, and these appointments represent a significant step forward in that journey.

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Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

2 days 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

3 days 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.

Banking Sector

Strong Growth in Earnings for Leading Nigerian Banks in H1 2023

Published

5 days ago

September 19, 2023

Investors King

Financial reports released by eight Deposit Money Banks (DMBs) for the first half of 2023 have showcased robust financial performances, collectively amassing N3.9 trillion in gross earnings.

These figures were recently disclosed through the financial statements published on the Nigerian Exchange Limited’s website.

Zenith Bank: Zenith Bank, in its audited results for the half-year ending on June 30, 2023, stood out with remarkable growth, posting a 139 percent surge in gross earnings. This figure soared from N404.8 billion in H1 2022 to N967.3 billion in H1 2023.

The bank also reported a 161.84 percent increase in profit after tax, reaching N291.7 billion by June 2023.

Guaranty Trust Bank (GTCO): GTCO recorded a substantial 85 percent rise in gross earnings during H1 2023, soaring to N672.603 billion from the N364.306 billion recorded in the previous year.

In its audited consolidated and separate financial statements filed with both the Nigerian Exchange Group and London Stock Exchange, the bank reported a profit after tax of N280.482 billion for H1 2023, compared to N77.557 billion in the corresponding period of 2022.

United Bank for Africa (UBA): UBA demonstrated its financial prowess with a remarkable 164 percent increase in gross earnings, reaching N981.78 billion in June 2023, compared to N372.36 billion in June 2022.

According to the bank’s audited financial report, its profit after tax surged to N378.24 billion, reflecting a staggering 437.8 percent increase over H1 2022.

First Bank: Nigeria’s oldest bank, First Bank, experienced substantial growth in gross earnings, witnessing an 82.8 percent increase to N656.6 billion in H1 2023, compared to N359.2 billion in the same period of 2022.

The bank’s profit after tax also saw significant growth, increasing to N174.9 billion in H1 2023 from N53.3 billion in the previous year.

Also, other prominent banks that recorded substantial growth in gross earnings in the first half of 2023 included Wema Bank (N89.09 billion), Fidelity Bank (N247.1 billion), Sterling Holding (N99.06 billion), and FCMB (N238.2 billion). Cumulatively, these eight banks collectively amassed N3.9 trillion in the first six months of the year.

A deeper analysis of these banks’ financial statements indicated that the impressive performance in the first half of the year was primarily attributable to the devaluation of the naira following the Central Bank of Nigeria’s decision to float the local currency.

For instance, Zenith Bank’s interest income surged by 72 percent, reaching N415.4 billion in H1 2023 from N241.7 billion in H1 2022. Additionally, trading gains rose by 21 percent to N103 billion during this period.

The growth in interest income was attributed to the impact of both the expansion and repricing of risk assets.

“The liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluation gains improved significantly,” noted the bank.

These impressive financial performances underscore the resilience and adaptability of Nigerian banks in the face of economic challenges and changing market conditions, positioning them as key players in the nation’s financial landscape.