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ICYMI: 10 important news you may have missed last week



Stanbic IBTC and NIRSAL partner on N50b Agric financing

To further the efforts in place to boost agricultural productivity and modernization, the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has entered an agricultural financing partnership worth N50 billion with Stanbic IBTC bank.

Stanbic IBTC has already committed N10 billion for the take-off of the scheme for the 2017/2018 dry and wet season. This scheme is anticipated to drive inclusive economic growth through agriculture in fulfillment of the NIRSAL’s mandate to attract private sector finance to agriculture.


Labour demands reversal of appointment in NIMET

Nigerian Labour Congress (NLC) has demanded that the Federal government reverse the appointment granted to non career professionals in some key technical and scientific directorate position in Nigerian Meteorological Agency (NIMET).

The Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employess (AUPCTRE), expressed their displeasure over the appointments after an emergency meeting in Abuja and threatened to cause havoc in the sector if the Federal Government did not reverse it.

Niger senator, Senator Mustapha Sani defrauded

Buhari Mohammed and Fatima Mohammed are being tried at a Minna Chief Magistrate’s court for allegedly defrauding Niger senator, Senator Mustapha Sani of N400, 000.

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The senator lodged a complaint that he received a call in July from someone who claimed to be the Emir of Lapai, Alhaji Umaru Tafida, requesting financial aid for the running of his palace. The caller had sent an account number to which the senator paid in N400, 000.

The senator realized he had been duped when in August he visited the emir who denied any such transaction. Investigation led to Buhari and Fatima who both pleaded not guilty. The case has been adjourned and bail set at N100, 000

MAN to receive bulk of N2.5trillion capital expenditure for locally made goods

Manufacturers Association of Nigeria (MAN) has been assured by the National Assembly that a bulk part of the N2.5 trillion set aside for capital expenditure in the 2017 budget, will be used in the procurement of Made-in Nigeria products.

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The Senate President, Dr. Bukola Saraki, made this assurance during MAN’s 45th Annual General Meeting (AGM) held in Lagos yesterday. He said that the Nigerian economic growth can only be sustained if the people learn to rely less on imported goods.

EFCC to extradite former Petroleum Minister, Diezani Alison-Madueke

On Thursday, the Economic and Financial Crimes Commission (EFCC), confirmed their intentions to extradite former petroleum minister, Diezani Alison-Madueke. The EFCC Acting Chairman, Ibrahim Magu, said in his statement to journalists, civic groups and others “I want you to know that nobody will go unpunished. We are even seeking to extradite Diezani, but investigations are still ongoing. We have reached a level where nobody can stop us in the fight against corruption, but we all must realize that we are all stakeholders, and this fight is for the future generation.”

Nigeria’s SMEs record 27% International trade

Nigeria’s Small and Medium scale Enterprises (SMEs) recorded about 27% international trade in the 1st and 2nd quarter of the year ahead of other firms grouped together in the Middle East and Africa (MEA). Nigeria had 27% followed by Egypt at 25%, South Africa at 17% and Israel at 15%

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Oil production exceeds OPEC’s 1.8million bpd restriction target

The country has exceeded the allocated crude oil production level by the Joint Organization of OPEC-Non-OPEC Technical Committee (JTC) as the oil production increased by 138,300 barrels per day from the 1.723 million barrels per day in July to 1.861 million barrels per day. This is according to the latest report from the Organization of the Petroleum Exporting Countries (OPEC).

According to OPEC, Nigeria’s crude oil production has consistently increased from 1.511 million bpd in the first quarter to 1.616 million bpd in the second quarter; from 1.710 million bpd in June to 1.723 million bpd in July.

Inflation rate continues decline says NBS

The National Bureau of Statistics report revealed that this is the seventh consecutive month of decline in Nigeria’s inflation rate. The report stated “The urban index rose by 16.13% (year-on-year) in August 2017, down by 0.09% points from 16.04% recorded in July, and the rural index increased by 15.91% in August from 16.08% in July. Food price pressure continued into July as all major food sub-indexes increased. The food index increased by 20.28% (year-on-year) in July, up by 0.37% points from the rate recorded in June (19.91%)”

Western Lotto Nigeria gives Mega Upgrade Promo winners N7.1m

A gaming and entertainment company, Western Lotto Nigeria Ltd, gave 142 out of 414 customers a sum of N50, 000 each amounting to N7.1million. This was prize won in the company’s ongoing Mega Upgrade Promo. The Managing director of the company, Yomi Ogunfowora, said that they had only called on 142 (who won through the company’s brand ambassadors) out of the 414 winners in order to be able to properly manage the outing.

The event was held to show transparency to an otherwise doubtful crowd given the ‘online’ nature of the company. Ogunfowora went further to announce and introduce their new sets of games, Lotto Race and Kashman.


Kaduna zone Customs generate N17 billion Revenue

Nigerian Customs Service, Zone B, Kaduna, generated revenue of about N17billion between January and August 2017. The Assistant Comptroller-General of the Zone, Aminu Dahiru, said that the figure represents 73.4% of the zone’s target revenue for 2017. Aminu attributed their achievement to the commitment of the personnel to duty and concrete measures to ensure diligence in collecting revenue due to government. He expressed confidence in their ability to meet the N24billion revenue target by the end of the year.


Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience. Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

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Governor David Umahi of Ebonyi tests positive for COVID-19

Umahi has directed those who worked in the budget review for 2020 to immediately test for COVID-19.



David Umahi, Ebonyi State workers will not get salaries for this reason

The Governor of Ebonyi State, David Umahi has tested positive for COVID-19, reported on Saturday afternoon.

Umahi’s Special Assistant on Media, Mr. Francis Nwaze, confirmed the news and also revealed that some associates of the governor also tested positive.


He also said that the Governor is not showing any symptoms of the disease, though he has isolated himself in line with the NCDC protocols.

“The governor has directed his Deputy, Dr Kelechi, to coordinate the state’s fight against the disease and appealed to the citizens to take the NCDC protocols seriously.

READ MORE: Governors may push for 42% of federal allocation in new sharing formula

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“He will currently be working from ‘home’ and will be conducting all meetings virtually,” Nwaze added.

David Umahi becomes the sixth Nigerian governor to test positive for the disease, Governors of Kaduna, El- Rufai, Bauchi, Bala Mohammed and Oyo, Seyi Makinde have fully recovered while the recent cases have been the Governors of Ondo, Rotimi Akeredolu and Delta, Ifeanyi Okowa.

On Thursday, Governor Umahi announced that the state’s Executive Council was finalizing the budget review required by World Bank and said “most us broke down and are being treated of malaria.”

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He also directed those who worked in the budget review for 2020 to immediately test for COVID-19 and admitted he is expecting a second test result after he initially tested negative in March.

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Economy & Politics

Nigeria’s debt rises to $79.5 billion, as debt to revenue ratio worsens

According to data obtained from DMO, $27.66 billion (N9.9 trillion) is the total external debt.



DMO suspends April 2020 FGN savings bond offer

Nigeria, Africa’s largest economy’s total public debt rose to $79.5 billion (N28.63 trillion) as of the first quarter of 2020, which is March 31, 2020. This represents a 15% increase from the figure that was recorded for the corresponding period in 2019, which was about $69.09 billion (N24.94 trillion).

This was disclosed in a latest publication by the Debt Management Office (DMO) on Friday June 3, 2020.


Nigeria has seen its debt stock rise sharply in recent years as the country tries to fund infrastructural and developmental projects and boost its fragile economy, which has been in and out of recession. The country’s economy has been projected to fall into recession again, due to the adverse impact of COVID-19 that has seen oil prices crash globally.

According to data obtained from DMO, $27.66 billion (N9.9 trillion) is the total external debt. This represents 34.89% of the total public debt stock. Whereas, $51.64 billion (N18.64 trillion) is the total domestic debt, which represents 65.11% of the total public debt.

The Federal Government accounts for 50.77% of the total domestic debt, which is $40.26 billion (N14.53 trillion), whereas the State Governments and Federal Capital Territory account for 14.34% of the total domestic debt which is $11.37 billion (N4.11 trillion).

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Nigeria has been under a lot of fiscal crisis following the crash of oil prices triggered by the coronavirus pandemic. The oil sector accounts for about 90% of the country’s foreign exchange earnings and about 60% of its total revenue.

The country, which had lined up a series of debt issue this year, had to halt the external commercial borrowing due to oil price collapse. The Minister for Finance, Zainab Ahmed, had last week disclosed that the country would no longer go ahead with its Eurobond debt issue.

The Nigerian government, for now, is focusing on the domestic markets and concessionary loans to help fund the 2020 budget deficit which is made worse by drop in revenue. In the recently approved 2020 revised budget, the federal government is expected to borrow N850 billion from the domestic market.

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This rising debt has put a lot of pressure on the government’s resources as it spent $1.69 billion (N609,13 billion) to service its domestic debt in the first quarter of 2020 alone.

Nairametrics had reported that Nigeria’s global rating is at risk due to the sharp rise in the country’s sovereign debt and a growing finance gap. According to a report from the global rating agency, Fitch Ratings, this could trigger a rating downgrade as policymakers struggle to stimulate growth and deal with the impact of low oil prices and sharp drop in revenue.

According to Fitch, the country’s debt to revenue ration is set to deteriorate further to 538% by the end of 2020, from the 348% that it was a year earlier.

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Financial Services

CBN imposes fresh CRR debits on banks to the tune of N118 billion

These debits have inevitably tightened liquidity in the banking system and bankers are complaining.



CRR Debits

On July 3rd, 2020, the Central Bank of Nigeria (CBN) once again debited many banks in Nigeria in line with its Cash Reserve Ratio (CRR) compliance requirement. This time around, about 14 banks were debited to the tune of N118 billion.

These banks are:

  • Access Bank Plc: N3 billion
  • Guaranty Trust Bank Plc: N15 billion
  • First Bank of Nigeria Ltd: N12.4 billion
  • Ecobank Nigeria: N7 billion
  • Sterling Bank Plc: N5 billion
  • Fidelity Bank Plc: N11 billion
  • Union Bank of Nigeria Plc: N12.5 billion
  • First City Monument Bank Ltd: N10 billion
  • CitiBank Nigeria Ltd: N10.2 billion
  • Stanbic IBTC Bank: N15 billion
  • Zenith Bank Plc: N7 billion
  • Wema Bank Plc: N3 billion
  • Titan Trust Bank: N2.5 billion
  • Rand Merchant Bank Nigeria Ltd: N4 billion

More details on these debits

These constant CRR debits, which typically herald the apex bank’s FX auctions as Nairametrics was made to understand, have served to significantly reduce liquidity in the system. An insider who informed Nairametrics about the latest debit said “the liquidity within the system is now very tight”. As a matter of fact, liquidity is now reportedly below N100 billion.


Apparently, the CBN is using these weekly CRR debits to mop up liquidity in the system. In other words, these debits help to prevent banks from coming to the FX auctions with lots of cash. Too much FX demands tend to put the apex bank under pressure.

Note that inasmuch as the CBN is trying hard to stabilise the FX markets, these constant debits have inevitably affected banks negatively by leaving them cash-strapped. Our source, who was quoted above, earlier complained about these ‘indiscriminate debits’ when he said:

“These are huge amounts that are leaving the banking sector. It’s a squeeze on the banks. A bank like First Bank, for instance, has about N1.4 trillion in CRR with the Central Bank. And there is Zenith Bank with equally as much as N1.5 trillion. These are monies that banks can potentially put in loans at 52% at 30%, or even put in money market instruments at maybe 10%. So, for a shareholder of these banks, this CRR debits are impairing the banks’ ability to increase their earnings because now are not able to use the funds that are legitimately theirs to create money for their shareholders. And the question is that under what framework is the Central Bank choosing to take people’s money?”

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Banks’ stakeholders have also collectively complained

Meanwhile, bank stakeholders have also collectively complained about these incessant CRR debits by the Central Bank of Nigeria. As Nairametrics reported yesterday, the negative impacts of CBN’s constant CRR debits were among some of the issues raised by banks’ stakeholders during Standard Chartered Bank’s 2020 Africa Investor’s Conference.

It is important to point out that many banks in the country, including the likes of First Bank, now have billions of their customers’ debits sterilised for the sake of CRR compliance.

Understanding CRR

The cash reserve requirement is the minimum amount banks are expected to leave retained with the Central Bank of Nigeria from customer deposits. In January, the CRR was increased by 5% to 27.5%  by the CBN Monetary Policy Committee (MPC) who explained that the decision was intended to address monetary-induced inflation whilst retaining the benefits from the CBN’s LDR policy.

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