As part of its effort to stimulate lending to the real sector of the economy, the Central Bank of Nigeria has directed that banks’ daily deposits placement through the CBN’s Standing Deposit Facility, shall no longer exceed N2 billion.
According to a circular released on the apex bank’s website and titled “Guidelines on accessing the CBN Standing Deposit Facility”, daily deposits by any bank in excess of N2 billion shall not attract interest payments.
According to the circular which was signed by the apex bank’s Director of Financial Markets Department, Angela Sere-Ejembi, the new directive will take effect from today, Thursday, July 11th, 2019.
Below are some of the key highlights from the circular.
- The remunerable daily placements by banks at the SDF shall not exceed N2 billion.
- The SDF deposit of N2 billion shall be remunerated at the interest rate prescribed by the Monetary Policy Committee (MPC) from time to time.
- Any deposit by a bank in excess of N2 billion shall not be remunerated.
It should be noted that the new guideline (N2 billion) by the apex bank represents a 73% reduction from the previous limit of 7.5 billion introduced way back in 2014.
Past Developments: In November 2014, the Central Bank of Nigeria observed that deposit money banks and discount houses preferred to keeping their idle balances in the Standard Deposit Facility with the CBN. Unfortunately, this preference contributed to the restraining of the financial intermediation process. And this was why the CBN opted to review the guidelines for the operation of the standing deposit facility.
The review recommended that daily placements by discount houses and banks at the SDF should not exceed N7.5 billion. This was to be remunerated at the SDF rate at 10% annually.
What the latest development implies: In recent times, deposit money banks have been reluctant to lend to the key sectors, a trend which the CBN is determined to put an end to. Therefore, the aim of the latest directive is to unlock the credit market, whilst making funds available to the real sector which, currently, is starved of funds. Ultimately, this will encourage lending activities and stabilise/encourage economic growth.
Analysts at Nairametrics also believe that this will help facilitate the CBN’s recent directive for banks to issue credit above 60% to the real sector.
What is Standard Deposit Facility: It is a monetary policy operation used by Central Banks around the world to absorb deposits from deposit money banks, without involving the use of government securities as collateral in return. In other words, it is a collateral-free monetary policy arrangement.
Applications across Nigeria, South Africa and Kenya now open for the 2021 Facebook Community Accelerator Program
The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.
Today, Facebook is inviting community leaders from Nigeria, South Africa and Kenya to apply for the 2021 Facebook Community Accelerator Program—a program that offers participants training, mentorship and up to $50,000 USD in funds to invest in an initiative that extends their community’s positive impact.
The aim of the Community Accelerator is to help leaders of Facebook communities to harness the power of their community to turn ideas into action. The selected leaders will spend five months learning from experts, coaches and a customised curriculum so they can strengthen their community.
Lessons include community identity foundations, leading action-oriented programmes and sustainability. Participants will also receive early access to new Facebook products aimed at helping communities better manage and activate their members.
Plan an initiative
Participants will identify an important initiative that will create a positive impact on the broader world and develop a plan to mobilise their community around their goal. Initiatives will be shared with potential partners, mentors and a panel of judges for the chance to be awarded funding and receive public recognition.
Participants will then spend three months executing their initiatives. They will collaborate with advocates and leaders in the community space and work with the Facebook team to bring their ideas to life.
Says Kiran Yoliswa, Partner Management Lead, Middle East and Africa Community Partnerships at Facebook: “Facebook communities and their leaders are helping to resolve social challenges, sharing knowledge and information, while connecting with others that share their interests or passion for a cause. We’ve seen so many incredible communities from across South Africa, Kenya and Nigeria using our platform to drive change and provide support and encouragement for thousands of people, we’re excited to offer their Facebook Community leaders this program to help amplify their impact even more.”
How to apply
This program is open to communities that have a presence in Facebook Groups with leaders who are 18 years or older. Communities must have existed for over one year and must have a minimum size of 1,000 members. Applications open today, May 4 – 31, 2021.
The Community Accelerator is part of our Facebook Community Leadership Program, a global initiative that invests in people building communities. Learn more and apply here.
NIN registration: 54 million Nigerians have now enrolled – Buhari
12 million Nigerians were enrolled into the National Identity Database in the past 6 months.
President Muhammadu Buhari disclosed that the FG has enrolled 54 million Nigerians into the National Identity Database, citing that 12 million were enrolled in the past 6 months alone and that the final aim of the scheme is to secure Nigeria’s security infrastructure.
President Buhari disclosed this in a statement on Thursday evening.
What the President said about NIN enrollment
“I am pleased with the success we are recording in the enrollment of persons into the National Identification Number (NIN) database. 54 million Nigerians have now enrolled; I am told over 12 million of these within the last six months. Our goal is total coverage.
The National Identification Number (NIN) is the foundational digital ID for the country. It will cover one of the weaknesses in our security structure. We will be able to easily identify all Nigerians, including the crooks in our midst.”
The President added that both legal residents and Nigerians are expected to obtain the NIN as it would be beneficial to government agencies to utilise resources efficiently.
In case you missed it
The Federal Government announced a further extension of the ongoing National Identification Number (NIN) registration and linkage with Subscriber Identity Module (SIM) exercises to a new deadline of June 30, 2021.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2021 Q1 Results: FTN Cocoa Processor Plc reports loss after tax of N162.21 million
- Tantalizers Plc reports a loss after tax of N97.75 million in FY 2020 in Q1 2021.
- Courteville Business Solutions Plc proposes final dividend of 3 kobo per share for FY 2020.
- 2020 FY Results: UPDC Real Estate Investment Trust records over 500% growth in Profit after tax.
- Sovereign Trust Insurance records a 43% surge in profit after tax to N392.1 million in Q1 2021.