CBN Archives - Page 2 of 4

BREAKING: CBN Raises Interest Rate to 17.5%

The Monetary Policy Committee of the Central Bank of Nigeria has voted to increase the benchmark interest rate by 100 basis points to 17.5 per...

Business2 years ago

CBN Bans Over-The-Counter Withdrawal of New Notes

The Central Bank of Nigeria has ordered Deposit Money Banks not to pay customers making over-the-counter withdrawals of new naira notes again. Instead, the apex...

Business2 years ago

BREAKING: CBN Limits Cash Withdrawals to N100k Weekly

The Central Bank Of Nigeria has imposed fresh cash withdrawal limits on individuals and organisations, which take effect from January 9, 2023. According to a...

News2 years ago

Visa ban: UAE blackmailing Nigeria, CBN – Youth group

A coalition of youths under the aegis of Nigerian Ethnic Youths Leaders Council on Wednesday said that the threat by United Arab Emirates to slam...

Business2 years ago

eNaira now accessible to Nigerians through USSD

The Governor, Central Bank of Nigeria, Godwin Emefiele, has disclosed that from next week, Nigerians would be able to conduct transactions on eNaira wallet through the...

Business2 years ago

We’re working to avert further Naira fall – CBN

The Central Bank of Nigeria (CBN) has assured that it would continue to make deliberate efforts in the foreign exchange sector to avert further downward slide...

Manufacturing companies have said they cannot access loans at the Central Bank of Nigeria’s five per cent lending rate under its intervention scheme for manufacturing and other critical sectors. According to them, the loans have structural framework problems and are almost never accessed in banks at five per cent. They added that banks were more open to giving manufacturers loans at their official market rates. Speaking with The PUNCH, the Chairman of Manufacturers Association of Nigeria’s Electrical/Electronic sectoral group, Mrs Ijeoma Oduonye, said efforts made by her firm towards accessing the intervention funds through one of its designated commercial banks had proved abortive. She said, “Before now, we tried to work through one of the banks, but it didn’t materialise, now we are talking with another bank. It is a sector intervention fund that was going for nine per cent before but now they brought it to five per cent. But we as a company have not accessed it because the commercial banks we wanted to process it in could not process it. “I do not understand the details from their end. I don’t know the regulation between the bank and the CBN. But the bank told my firm they won’t be able to process it. Ordinarily, commercial banks would prefer you use their funds, it is at a higher interest rate.” Also, according to the Sectoral Chairman of the Manufacturers Association of Nigeria’s Gas users and the Executive Director of Haffar Industries, Michael Ola-Adebayo, the structural framework of the CBN intervention leading has complexities that limit manufacturers from accessing them through the designated commercial banks. He said, “We have not been getting the loans. Has any manufacturer been borrowing this money? The commercial banks have not provided the facility to borrow money at five per cent, or even 10 per cent. According to a The PUNCH report, the CBN agreed to leave interest rates at five per cent per annum for critical sectors and manufacturing industries until March 2023. This decision followed the resolution of the Monetary Policy Committee to increase the benchmark interest rate to 13 per cent from 11.5 per cent. When contacted, the Director of Corporate Communicatios, CBN, Mr Osita Nwanisobi, disagreed with the position of the manufacturers. Read Also CBN’s rate hike portends harder times for SMEs We’ll no longer route sensitive election materials through CBN – INEC Bank customers to produce indemnity for online transfers above N1m – CBN According to him, more than N1tn has been disbursed under the intervention scheme for the manufacturing sector and others. He said, “I don’t know who the manufacturers are, because if we have a fund, and the payout as of today is over N1tn, is it not manufacturers that collected this money? “If over N1tn has been disbursed, are they ghosts? It couldn’t have been a ghost. Under the Differentiated Cash Reserve Requirement, over N1tn has been given out. The one for manufacturers, we call it the DCCR, and it is also at five per cent.” Nwanisobi added that the manufacturing firms that might have been unable to obtain funds through the scheme were not able to pitch convincing proposals on the projects that the funds would be used for. He stated, “The banks would have to do due diligence on those projects. Somebody else has to carry that credit risk.”

Business2 years ago

CBN panel panics over Nigeria debt repayment capacity

The Monetary Policy Committee of the Central Bank of Nigeria has raised concerns over the nation’s debt sustainability in light of current global uncertainties. The Federal...

Business3 years ago

FG’s borrowing from CBN hits N19tn

The Federal Government’s total borrowing is now standing at N19.01 trillion, moving from N17.46 trillion as of December 2021. According to the Central Bank of Nigeria...

Business3 years ago

MAN tackles CBN over N1tn low-interest loan

Manufacturing companies have said they cannot access loans at the Central Bank of Nigeria’s five per cent lending rate under its intervention scheme for manufacturing and...

Business3 years ago

Banks tighten forex access as reserves hit 7-month low

Figures obtained from the Central Bank of Nigeria have revealed that the country’s external reserves hit a seven-month low after falling to $38.57bn on Monday. Findings...