Banks are increasing lending to the private sector with an average monthly N1.6 trillion facility over the past two months.

 The N1.6 trillion pushed credits to the private sector to N74.31 trillion.

Latest data from the Central Bank of Nigeria (CBN) indicates that credit to the private sector (CPS) rose by 65.9 percent or N29.52 trillion to N74.31 trillion last May compared to N44.79 trillion recorded in the same period last year.

A month-on-month breakdown shows sustained growth in lending over the past two months with additional credits of N1.39 trillion and N1.71 trillion in May and April 2024 respectively.

The CPS includes loans, trade credits, other account receivables, and banks’ support to the private sector within a period.

The CPS is a global measure of the banking sector’s balance sheet resilience and contribution to the national economic agenda.

The growth in lending and support to the private sector underlines the resilient balance sheet of banks and their responses to the CBN’s push for increased lending to bolster economic activities.

The data illustrate the importance of the banking sector emerging as the backbone of the country’s economic renewal agenda.

Banks’ lending and support to the private sector rose from N71.21 trillion in March 2024 to N72.92 trillion in April. They rose to  N74.31 trillion in May 2024, representing a month-on-month increase of 1.9 percent and 2.4 percent for May and April 2024 respectively.

The latest CPS data came on the heels of a recent report on capital importation which showed that banks attracted nearly two-third of capital importation.

Analysts had said this was a measure of confidence in  Nigerian banks as foreign investors gradually took a more active stance in the nation’s economy.

Experts agreed that increased private sector credit implies a major boost for the economy as there is a link between credit to the private sector and economic growth.

Some studies have continuously found that increased lending by banks directly leads to an increase in Gross Domestic Product (GDP).

Experts at Cordros Capital said they expected the re-enforcement of  CBN’s limit on the loans-to-deposits macro-prudential ratio for Deposit Money Banks (DMBs) to continue to drive the willingness of commercial banks to create risk assets.

A study by the CBN concluded that “credit is growth-enhancing, even when trade openness, monetary policy, investment climate, and infrastructure are low.” The study found that private-sector credit increases economic growth.’’ 

The balance sheet strength of banks also determines the flow of credits, with the continuing increase in lending amidst macroeconomic headwinds underpinning Nigerian banks’ resilience and stability.

In a study on ‘Balance Sheet Strength and Bank Lending During the Global Financial Crisis’, researchers at International Monetary Fund (IMF) examined the role of bank balance sheet strength in the transmission of financial sector shocks to the real economy.

The study found that “banks with strong balance sheets were better able to maintain lending during the crisis.”

According to the study, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of credit more than other banks.

“However, higher and better-quality capital mitigated this effect. Our results suggest that strong bank balance sheets are key for the recovery of credit following crises, and provide support for regulatory proposals under the Basel III framework,” the IMF report stated.

Managing Director, Arthur Steven Asset Management Olatunde Amolegbe, said the growth in credit to the private sector could be attributable to an increase in economic activities.

He, however, pointed out that other factors such as inflation and devaluation could moderate such increase

Chief Executive Officer, the Centre for the Promotion of Private Enterprise (CPPE) Muda Yusuf, said the credit outlook remains cautious. He called for an expansive distribution of credits across all tiers of companies and sectors.

According to him, there are major concerns in terms of the distribution of credits across sectors and companies with small businesses, which contribute more to job creation and economic inclusion, not likely to benefit much.

He noted that banks tend to be wary of credit risk concerns associated with lending to small businesses and certain sectors. Yusuf added that efforts should be made to drive inclusive and stable credit access to all sectors, including growth and employment elastic sectors such as agriculture, manufacturing, real estate, and mining and construction. 

CBN Governor  Olayemi Cardoso had said the ongoing recapitalisation would strengthen banks further to drive the $1 trillion national economic target and support stable economic growth.

According to him, additional capital would not only provide a substantial buffer for banks against potential economic challenges but also enhance Nigeria’s banks’ capability to support massive economic growth and play competitively globally.

Experts agree that considering the increase changing dynamics in the banking sector and the overall economy since the last recapitalisation, it has become necessary to strengthen the banks’ financial positions.

The owner of Dangote Refinery, Aliko Dangote, has announced August 2024 as the new date to roll out fuel supply in the Nigerian market.

Dangote disclosed this on Sunday while speaking to journalists.

He noted that it has resolved its crude oil supply issues with the help of the Nigeria National Petroleum Company Limited, NNPCL and the Nigerian federal government.

He stressed that the crude supply challenge was resolved last week after the federal government intervened.

The journalists were on a guided tour of the 650,000-barrel-per-day refinery, which is located at Lekki Free Trade Zone in Lagos.

Outside fuel supply, he said that the refinery’s fertiliser unit would resume production in two weeks.

This would give farmers more access to fertiliser for their farm products.

“Ramping up production to reach 500 kbpd (15 crude cargoes a month) by next August, 550 kbpd by end of the year, and 650 kbpd by Q1 2025.

“Gasoline production to commence in July with sales from August,” a report released by the company stated.

This showed a long walk to the commencement of full-scale production at the Dangote Refinery, which was commissioned on May 22, 2023.

Dangote had earlier stated that the facility would kick off the supply of fuel in Nigeria in mid-July 2024.

In a similar development, the company announced that NNPCL no longer has a 20 per cent but a 7.2 per cent stake in the refinery.

The Force Public Relations Officer, ACP Olumuyiwa Adejobi, on Sunday, said the police have the right and power to initiate any approach to curb crimes and criminality in Nigeria, as is applicable in other climes.

DAILY POST recalls that the NBA Section on Public Interest had earlier issued a seven-day ultimatum to Egbetokun to stop the directive requiring vehicle owners to register and obtain a CMRIS certificate for a fee of not less than N6,000.

NBA-SPIDEL questioned the legal basis for the Nigeria Police Force’s issuance of the CMRIS Certificates, stating that no law had granted the police the authority to issue such licences or certificates to vehicle owners following vehicle registration at the appropriate offices.

It made the call in a letter addressed to the Inspector General of Police, and co-signed by NBA-SPIDEL Chairman, John Aikpokpo-Martins; and Secretary, Funmi Adeogun.

But while reacting in a statement on Sunday, Adejobi faulted the report saying no agency can take the police up on the initiative, adding that the police have been issuing CMR for decades, so it’s not a new strategy or document.

“This is unfounded, fake, and misleading. The NBA as a body will react to this. Stop spreading fake news. Who are those who made the statement or declaration, and in what capacity?

“I challenge you to share the press statement with me, then we can talk.

“Do your investigation on this. The police have the right and powers to initiate any approach to curb crimes and criminality in Nigeria, as it’s applicable in other climes.” It said

According to the statement, no agency can take the police up on this initiative, adding that they will rather key into it, harmonise the system for the good of the country, and its citizenry

A Senior Advocate of Nigeria, Dr Olisa Agbakoba, has faulted the the agitation for the creation of additional states in the South-East, insisting it would not solve the problem of the region.

Rather than create more states, Agbakoba,  a former President of the Nigerian Bar Association, said the National Assembly should amend the constitution or put together a completely new one that would return Nigeria to regional governments.

The lawyer expressed the view in an interview with the News Agency of Nigeria on Sunday in Lagos.

NAN reports that the House of Representatives recently passed for second reading a bill seeking the creation of Etiti State out of Abia, Anambra, Ebonyi, Enugu and Imo states from the South-East geopolitical zone.

The bill  was jointly sponsored by Godwin Ogah, Miriam Onuoha, Kama Nkemkama, Princess Nnabuife and Anayo Onwuegbu.

Leading the debate on the general principles of the bill, Ogah, representing Abia State, said the establishment of Etiti State was not just a matter of administrative convenience, but a step towards ensuring balanced regional development and effective governance.

The lawmaker said the bill was a response to the aspirations of the people of a very important region to the country and aligned with the principles of equity and inclusivity enshrined in the country’s democratic idea.

Similarly, some lawmakers and stakeholders have also called for the creation of Anioma State from states in the South-South and South-East regions.

One of those leading the call, Senator Ned Nwoko( PDP-Delta North), said the creation of Anioma State would correct what he described as the marginalisation of the South-East geo-political zone.

However, speaking with NAN on Sunday, Agbakoba said  though  an average person from the South-East would support an additional state in the region, anyone who could see the big picture could tell that the creation of additional states would not guarantee development.

He said, “This agitation will arise because it is on the basis of the number of states that federal allocation flows.

“So the fact that the South-East has five states means to them that they are losing revenue and that is a one point of view and also an emotional point of their agitation.

“However, a pragmatic developmental point of view, which I go for, is that even if you create a sixth state in the South-East to give them a sense of belonging, will this new state in addition to the 36 states take us towards the path of development?

“Will it reverse the hunger, insecurity, poverty and unemployment in the land? Absolutely not.

“We need to do away from state creation to regional system of government.”

Agbakoba explained that he was not in support of additional states because most of the 36 states are economically unviable, insolvent and not capable of bringing about infrastructural development and even paying the proposed minimum wage.

“State creation at this present harsh economic will, no doubt, lead to an increase in the number of National Assembly members, ministers, local governments, and others, which would further increase the cost of governance in the country.

“This is coming at a time when most Nigerians are starving due to rise in the food prices. Insurgents, bandits and terrorists are abducting people for ransom in other states of the country.

“Therefore, the National Assembly should, instead return the country to the regionalism by collapsing the 36 states into six to eight regions or geopolitical zones, each of which will have a leader.

“This means that the present Nigeria 1999 Constitution would be amended or a new one written to accommodate this proposal.

“This is because making a new constitution for Nigeria has become an overriding imperative based on the fact that new political realities and conundrums have cropped up in the country,” Agbakoba said.

Agbakoba, a human rights activist, said regional governments were once successfully run with Chief Obafemi Awolowo in charge of the South-West, Chief Michael Okpara in charge of the South-East and Ahmadu Bello in the North.

Agbakoba said since Nigeria left the modernity of regionalism, the states had been unviable, apart from Lagos and Rivers.

President Bola Tinubu has praised the “enterprising spirit” of Nduka Obaigbena, chairman of ThisDay and Arise media group. 

The president spoke in a birthday message to Obaigbena, who turns 65 on Sunday.

Tinubu also “prays for greater achievements for the renowned publisher, whose philanthropic efforts, especially in education, have demonstrated his passion for human development”.

Obaigbena started ThisWeek magazine before establishing ThisDay newspaper in 1995.

He forayed into broadcast media in 2013 when he founded Arise News Channel, which has bases in Lagos, London, New York City, and Johannesburg, South Africa.

He is a former president of the Newspaper Proprietors’ Association of Nigeria (NPAN).

Obaigbena is a recipient of the national honour of the Commander of the Order of the Niger (CON) and has also earned the highest journalistic honour of the fellowship of the Nigerian Guild of Editors (FNGE).

He is also a lifetime achievement awardee of the 2023 Diamond Awards for Media Excellence (DAME).

According to the organisers, Obaigbena earned the honour because of his “contribution to the media and his dedication to mentoring leaders in the industry”.

England captain Harry Kane has described it as tough and painful losing the Euro 2024 final to Spain.

Substitute Mikel Oyarzabal scored a dramatic late winner as Spain triumphed in Sunday’s Euro 2024 final, beating England 2-1 to win the Euro championship.

England had come from behind in the 73 minutes through Cole Palmer but their resurgence in the game was cut short as Oyarzabal, the Real Sociedad forward, turned in a cross in the 86th minute to hand Spain a record fourth European Championship crown.

This leaves Kane at the age of 30 still looking for the first trophy of a career so rich in goals.

Speaking after the match, Kane said that his team lacked the momentum to push on after drawing level.

“Losing in a final is as tough as it gets… We done really well to get back in the game at 1-1 and then we couldn’t use our momentum to push on… It’s as painful as it can be in a football match.”

On the future of manager Gareth Southgate who hinted he might step down if England failed to win Euro 2024, Kane said, “Gareth will go away and take time to decide. We wanted to win it for him.”

The National Chairman of the All Progressives Congress (APC), Alhaji Abdulahi Ganduje, has said the party has initiated moves to de-marginalise Igbos to place them in the limelight of national politics.

Ganduje asserted on Sunday during the APC South East zonal meeting in Abakaliki, noting that Igbos had shown massive support to the party and the President Bola Tinubu-led administration presently.

The APC national chairman said that though a line must be drawn between marginalisation and low performance of the southeast in the APC, the party had decided to break the vicious cycle of marginalisation.

“The present appointments offered the zone by President Bola Tinubu’s administration is heartwarming and with more involvement in the party’s affairs, more would be achieved.

“We must break this cycle of marginalisation with determination, unity and total support to the party and President Bola Tinubu-led administration, he said.

He noted that Ebonyi had followed Imo’s trail in massively promoting the party’s activities and thanked Gov. Francis Nwifuru for sustaining the party’s ideals in the state.

“The challenge before us presently is how to claim Anambra, Enugu and Abia and must get all stakeholders together to achieve this goal.

Gov. Francis Nwifuru of Ebonyi thanked the party’s leaders for honouring the meeting in the state noting that the party is presently rooted in the state and southeast.

Nwifuru noted that Ebonyi had a policy of inclusiveness which had made all stakeholders in the state to be presently under the APC roof.

“The massive defection of opposition stakeholders to APC on July 13 attests to the fact that persuasion works more than bickering and fighting,” he said.

Gov. Hope Uzodimma of Imo in his remark, said it is an ugly coincidence that the APC is ruling Nigeria in these hard times occasioned by the world economic meltdown.

The Chairman of the South East Governors Forum said that many citizens of the country experience excruciating hardship with some going into penury.

“People have to know that there is global economic meltdown with some currencies exchanging 15,000 and 20,000 to one dollar.

“I however, have hope that if the tested policies of President Bola Tinubu administration, are well implemented, Nigerians would receive the much needed succour., he said.

The Deputy Speaker of the House of Representatives, Benjamin Kalu in his remarks, urged people of the south east zone to identify with the federal government’s efforts to de-marginalise the zone.

“President Bola Tinubu has given Ndigbo more than the vote cast for him during the elections.

“It is presently left for us to repay him for his good works because when ones shows appreciation, he gets more,” he said.

He noted that the president offered Igbos lucrative positions in his government as high- ranking ministers, deputy speaker of the house of representatives among others.

“The process for the south east development commission bill which would solve the numerous challenges confronting Igbos, has been finalised and awaiting the president’s accent , he said.

Nigerian singer, Nwakaego Ogbaro popularly known as Ego has opened up about her experiences following her departure from Lagbaja’s Africano band in 2007.

In a conversation on Chude Jideonwo’s podcast, Ego revealed the difficulties she faced and addressed long-standing rumours about her relationship with the masked musician.

The singer dispelled speculations that they were romantically involved and even married.

She explained that her exit from the band was entirely her decision and not a result of a fallout between her and Lagbaja.

She said, “We did not fight, there were no issues, I believe in my instincts a lot, and that time, it was telling me to move. And in all honesty, I felt there was nothing more I could do to top what I had done at that time. So, I said it was time for me to move on. I sort of knew what I wanted, I wanted a band of my own, you know, I just wanted to do my own thing, my own kind of music, that was it, and I went to him, we talked and he was happy, though it’s bittersweet, and he said, ‘I knew you had this leadership quality, I knew you are one of those people that would end up having her own band’, and he was very supportive.”

Asked whether there were days she ever thought of going back to the Lagbaja band, Ego said, “Yeah, I will explain why I said yeah.

“I wanted and I craved that comfort where I don’t have to make certain decisions, where all I needed to do was just sing, dance and just get my pay, where the responsibilities were just not mine. There were days like that where I craved that, because it was hard: you’re dealing with people from different backgrounds, you’re dealing with a lot and you have to make it work. There was a time I actually called him [Lagbaja] and said I know I probably gave you a hard time, but it’s now I understand what it means, and he was like ‘Okay,’ and I said, ah, it’s not easy oh, it wasn’t easy.

“So, there were days I felt like being part of a band again, and just touring, being on the tour bus, you know, there were days like that.”

With just over a year in office, a campaign billboard of President Bola Tinubu for his reelection in 2027 has been spotted in Abuja, the nation’s capital.

On the billboard is a picture of Tinubu holding his wife, Remi, in a lovey-dovey manner with the inscription “Grassroots support for Tinubu 2027”.

The reelection campaign for Tinubu is coming a few months after he celebrated his one year as president of Nigeria.

There are growing concerns about the policies of the present administration, which many believe have worsened the economic situation in the country.

There are fears that the president’s popularity is waning among citizens despite having spent less than two years in office.

The Independent National Electoral Commission (INEC) is yet to fix a timetable for the 2027 elections.

In May, Abdullahi Ganduje, the national chairman of the All Progressives Congress (APC), said the ruling party was being strengthened to enable Tinubu to secure a second term in office.

Ganduje said the APC national leadership is working with states to ensure that the party has functional offices in wards across the country.

Aliko Dangote, Africa’s richest person, says the Nigerian National Petroleum Company (NNPC) Limited no longer owns 20 percent stake in Dangote Petroleum Refinery.

Speaking during a press briefing at the refinery on Sunday, Dangote said NNPC now owns 7.2 percent of the refinery over failure to pay the balance of their share, which was due in June.

“NNPC no longer owns 20 percent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.

In September 2021, NNPC acquired a 20 percent interest in Dangote refinery for $2.76 billion.

Revealing details of the transaction, NNPC, in its audited financial statements for 2022, said NNPC Greenfield holds the investment.

NNPC said the balance ($1.76 billion) of the cost of equity investments made in Dangote refinery would be paid upon completion of the refinery project or any other date agreed.

Dangote refinery commenced production on January 12.