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Over N7.4tn Borrowed by 100 Bank Customers in Three Months

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  • Over N7.4tn Borrowed by 100 Bank Customers in Three Months

About 100 customers of Deposit Money Banks borrowed the sum of N7.44tn during a three- month period covering January to March this year.

An analysis of the banking sector credit showed that the N7.44tn borrowed by these 100 customers represented about 47.43 per cent of the N15.21tn granted to the entire economy during the three months period.

Further analysis showed that 1.88 million customers borrowed the balance of N7.76tn which was about 52.57 per cent of the entire N15.21tn borrowed during the period.

Further analysis showed that customers in the oil and gas sector borrowed the highest amount of N4.68tn.

This was followed by manufacturing with N2.23tn, while government, commerce, finance and insurance and power had loan portfolio of N1.37tn, N1.03tn, N954.6bn, N682.93bn respectively.

Agriculture sector had loan portfolio of N648.89bn, construction N642.87bn, information technology N607.95bn, real estate N599.39bn, transportation N316.95bn and capital market N227.26bn.

Others were public utilities N78.91bn, education N58.4bn, health N36.6bn, administration and support services N23.09bn, water supply N22.6bn, arts N11.34bn and mining N8.9bn.

Some finance and economic experts said that the Central Bank of Nigeria should reduce the lending rate to make it easier for businesses to borrow and expand their operations. The experts said a reduction in lending rate was long overdue as many businesses were currently finding it difficult to service their debt obligations.

A Developmental Economist, Odilim Enwegbara, said while the monetary authority had argued that lending rate could not be higher than inflation rate, in countries like Japan and Turkey, their interest rates were lower than inflation rate and bank still lend.

He said, “The government must mandate banks to reduce it (lending rate) and lend to key sectors of the economy because one thing is for the rate to be lower and another is the banks’ willingness to lend.

“If the lending rate is reduced, the cost in servicing debt by the Federal Government would reduce.

“The government should make these banks to invest in real sector instead of giving money to importers of finished goods. The manufacturing sector should get single- digit lending rate , importers of finished goods should borrow at 15 per cent while lending to government should be done at single digit. This will reduce the level of inflation in the country.”

The Lead Director, Centre for Social Justice, Eze Onyekpere, said that the high lending cost was a major reason why many debtors were finding it difficult to service their loans.

This, he added, had led to continuous increase in the huge non-performing loan portfolio of banks.

He said, “We have been saying it repeatedly that the high- lending rate is not good for the economy. How do you expect a business to borrow money at 30 per cent and remain competitive? There is no way that kind of interest rate can support the growth of the economy.

“So the lending rate should be reviewed downward, so that businesses can have access to cheaper funds, because that is what the country needs at this time.”

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.

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Npower News Today: Npower Salary Update, Npower Latest News on Permanency

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Latest Npower News Today: Npower Salary Update and Npower Latest News on Permanency

The Federal Government continues to engage private businesses and organisations on the absorption of exited batch A and batch B of the Npower program.

The Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar-Farouq, disclosed this in Abuja.

On continuity and sustenance, the Federal Government allocated N420 billion to Npower and other social investment programmes in the 2021 proposed budget before the National Assembly.

President Muhammadu Buhari also made mention of it in his last speech regarding the #EndSARS protest.

Buhari said, “In furtherance of our inclusiveness agenda, the sum of N420 billion has been provided to sustain the Social Investment Programmes, while N20 billion has also been set aside for the family homes and our Social Housing Programme.”

Speaking on unpaid exited Npower beneficiaries of batches A and B, the minister said “the ministry has directed that opportunity be given to the affected beneficiaries to verify and re-validate their eligibility so that qualified beneficiaries can be paid for their participation in the N-Power Programme.

“Beneficiaries are hereby directed to report to their State Focal Persons immediately with their bank account details including bank statements from March 2020 to date, NYSC Discharge Certificates, birth certificates and other related screening documents.

“The deadline for verification is October 13, 2020. Beneficiaries who fail to attend the verification exercise will forfeit their stipends.”

The fresh verification has now closed, however, the list of the successful candidates for Batch C would be announced soon according to the minister while the Federal Government continues to work on permanent placement for exited Npower beneficiaries.

On fake Npower news flying across social media, Rhoda Ishaku Iliya, the Deputy Director Information of the ministry, said the attention of the ministry has been drawn to series of fake news trending on social media.

She said “the attention of the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development has been drawn to the fake news trending on social media that President Muhammadu Buhari will broadcast to the nation the absorption of N-Power Volunteers Batch A, into the Federal Civil Service,” the statement reads.

“The Ministry is hereby calling on the public to disregard the message and consider it as fake news. Any information on N-Power or the National Social Investment Programme will be issued through the appropriate Federal Government channels.”

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Soldiers, Police Battle Hoodlums to Prevent Looting of Computer Village

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Soldiers and Police Battle Hoodlums Trying to Loot Computer Village

Hoodlums that hijacked the #EndSARS protest and turned it into a broad day robbery have continued to attack business districts, offices and properties of known establishments to loot and destroy years of labour despite the negative impacts of COVID-19 on these businesses.

Soldiers that were later joined by the Nigerian Police Force have been trying to repel hoodlums looking to break into computer village in Ikeja, Lagos State since the #EndSARS protest was hijacked.

According to residents and business owners contacted, the armed looters are still making an attempt to overpower security agents knowing there are valuables in the shops.

Right now they are still making an attempt (to overpower security agents) and considering the sensitivity of the business that we do, we sell very valuable commodities and they understand the liquidity of these products,” said Adeniyi Ojikutu, president, Computer and Allied Products Dealers Association of Nigeria (CAPDAN) said on the phone.

Ojikutu said the hoodlums, who were more than 500 in number, had shot in the air when they were discovered and remained close by for an opportunity to eventually break into the largest computer, mobile devices and ICT accessory market in Africa.

Also, because computer village is within close proximity to the Lagos State University Teaching Hospital (LASUTH), a new BRT station, Jara Mall, the Lagos State Police Command, Lagos State High Court and both the local and international Airports, it becomes imperative to protect it as a break-in by looters may spell disaster for other top establishments in the vicinity.

A resident said ‘Benin Boys’, a group of hoodlums, had earlier tried to invade computer village around 1 am but were prevented by security operatives. However, those that have been making attempts between the morning and afternoon of Friday were the Agege boys.

“The security were using megaphones to shout and warn all of us to stay inside,” said this resident.

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Dangote Sugar Refinery Postpones Board Meeting Amid Social Unrest

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Dangote Sugar Refinery Has Postponed Board Meeting Scheduled for Today Amid Social Unrest

The management of Dangote Sugar Refinery Plc on Friday said they have decided to postpone the company’s board meeting scheduled to hold today October 23, 2020 to a date they will communicate soon.

The management said the decision was due to the ongoing precarious situation in the country, especially the attacks on various establishments since governor Sanwo-Olu imposed a 24-hour curfew on all parts of the state.

In a statement signed by the company secretary, Mrs. Temitope Hassan, Dangote Sugar Refinery said “Further to our announcement made on October 8, 2020, the Company wishes to notify the Exchange and the investing public that the meeting of the Board of Directors of the Company earlier scheduled to be held on Friday October 23, 2020 to consider the draft unaudited financial statement of the Company for the Q3 ended September 30, 2020 has been postponed in view of the current precarious situation in the country.

“The new date for the meeting will be communicated as soon as normalcy returns. The Closed Period which has already commenced will continue till 24 hours after the filling of the Results.

“No insider of the Company, including its Directors, Employees, Advisers and Consultants and their connected persons may deal directly or indirectly in the Shares of the Company during the Closed Period.

All Dangote Sugar Refinery Plc Insiders have been duly informed.”

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