CBN goes after states, farmers over N600b unpaid loans – Newstrends
Connect with us

Business

CBN goes after states, farmers over N600b unpaid loans

Published

on

Governor of the Central Bank of Nigeria, Godwin Emefiele

The Central Bank of Nigeria (CBN) has begun an aggressive drive to recover the loans it gave out under its development finance interventions.

Top on the list of debtors are state governments whose monthly Federation Account Allocation Committee (FAAC) accruals are already being debited directly every month. The deductions will last six months.

Director, Development Finance of the CBN Yusuf  Yila, who disclosed this during a post-Monetary Policy Committee (MPC) in Abuja yesterday, did not name the debtor states.

Yila, who named the Anchor Borrowers Programme (ABP)  and Commercial Agric Credit (CAC) as some of the intervention programmes, said: “Every person(s)  or state that took that loan (ABP) is going to pay. We have their BVN.”

Such persons referenced by Yila are smallholder farmers, who received funds for farming from state governments via the ABP, but have yet to pay them back.

The CBN director added that the apex bank was collaborating with the Economic and Financial Crimes Commission (EFCC)  to ensure that the loans were recovered.

Yila  said while the ABP loan repayments were particularly poor, that of CAC was almost excellent.

Under the ABP, the CBN gave out about  N1 trillion but recovered only N400 billion. But under the CAC, the bank. lent out about N800 billion and recovered  N700 billion.

His words: “We have started recovering loans from state governments. We have been doing a loan workout programme with them and we are debiting their monthly  FAAC  accruals directly for the loans.

“If a state government has taken N1 billion and is already in default, over a six-month period, we debit them N150 million every month. So, we’ve started that programme..

“So, every single loan that has been given out through any of our intervention programmes must be paid back.

“There is absolutely no mercy. We have started; we are in recovery mode. At the development finance department, we have begun to recover the loans.”

“There is the ABP which is a primary consumption element of our interventions.  We lent out N1 trillion for the ABP  of which we have gotten over N400 billion back.

“Every single person or state that took that loan (ABP) is going to pay. We have their BVN. In fact, we have started implementing the Global Standing Instruction (GSI).

“We will continue to pull the account in the bank that they lent to or whichever bank that they have account. Anytime we see money in that account, we will recover it.

“We are working with the EFCC. The CBN governor has approved the collaboration with the EFCC on loan recoveries.”

Yila also said that credit facilities extended to businesses and individuals have not performed poorly.

READ ALSO:

According to him, out of the N9 trillion intervention fund to spur economic growth, about N5 trillion is still under moratorium.

Another staff member of the CBN, who did not want his name in print,  said there was  “an intervention facility that state governments accessed for projects but had failed to pay back.”.

He explained that “the CBN wrote to the states reminding them of payment as per our recovery drive but they decided to fight back by seeking the reduction of the bank’s powers.”.

The staff member made reference to the debate by the   Senate on Tuesday on whittling down the powers of the CBN governor.

The  Director, Banking Supervision of the CBN,  Haruna Mustapha, spoke on the implications of Tuesday’s interest rate hike by the apex bank.

Mustapha said  that “banks will make more profit from interest charged on loans and will reprice existing loans to borrowers.”

This, according to him, “will be transferred to bank customers and this will add to cost of borrowing. “

Adding that  “interests on government securities will also go up, ”  he said the CBN has given approval to banks to increase interest on savings deposits to 30 percent effective.

“We increased it from 10 percent to 20 percent and it stands to reason that since we hiked MPR yesterday(Tuesday) to 15.5 percent, it will change the equation.  The effective date is September,” Mustapha said.

The Nation

Auto

Chery relishes impactful presence at 2024 Lagos Trade Fair, says it’s a resounding success 

Published

on

Chery relishes impactful presence at 2024 Lagos trade fair, says it’s a resounding success 

 

Days after one of the biggest trade shows in Nigeria ended, talks about the spectacular displays, special products on offer and which companies did what at the 2024 Lagos International Trade Fair are still reverberating in the business industry in and around the nation’s commercial capital.

After staging one of the most outstanding displays at the fair, Carloha, sole representative of Chery vehicles in Nigeria, has declared that the 2024 Lagos International Trade Fair was a resounding success for Chery.

The fair held from November 1 to November 10 at Tafawa Balewa Square (TBS) in Lagos was attended by businesses from various sectors.

Chery made a commanding impression with a display of its array of vehicles that captivated attendees.

Chery’s lineup at the place featuring the Tiggo 8 Pro, Tiggo 4 Pro, Tiggo 2 Pro, and Arrizo 5 — easily became the highlight of the event, drawing admiration from automotive enthusiasts and industry experts alike.

Carloha Nigeria in its assessment of the show notes that the enthusiastic response from attendees reflected Chery’s alignment with the values of Nigerian consumers: durability, efficiency and style.

Indeed, it says the presence of Chery at the fair reinforced the brand’s status as a leader in innovative and high-quality vehicles.

“Chery’s presence at the fair signals its commitment to supporting Nigeria’s automotive industry growth,” it states, adding that the brand looks forward to continuing its journey with Nigerians seeking reliable and stylish vehicles that elevate their everyday driving experience.

Chery showcased the unique strengths and aesthetics of each of its models, with the Tiggo 8 Pro taking centre stage.

Tiggo 8 Pro

Known for its luxurious design and cutting-edge technology, the Tiggo 8 Pro made a lasting impact on attendees looking for a blend of sophistication and performance in an SUV.

Auto enthusiasts and prospective buyers were particularly captivated by the model’s spacious interior, high-quality finishes, and suite of intelligent features, which align with Chery’s reputation for engineering excellence.

Tiggo 4

For those interested in compact SUVs with versatility and style, the Tiggo 4 Pro was an instant hit.

Its sleek design, fuel efficiency, and advanced safety features resonated with visitors seeking a reliable yet stylish vehicle for urban and adventurous lifestyles alike.

The Tiggo 4 Pro’s appeal lies in its balance of form and function, and this resonated with young professionals, families, and automotive aficionados who stopped by Chery’s exhibit for a closer look.

Tiggo 2 Pro

The Tiggo 2 Pro also attracted significant attention at the fair.

Known as a stylish, compact SUV with a bold, urban design, the Tiggo 2 Pro struck a chord with those looking for a vehicle that combines affordability with aesthetic appeal and performance.

Its smaller size, combined with a powerful engine, makes it an ideal choice for city driving, and visitors were impressed by its efficient fuel consumption and user-friendly tech features, making it a perfect fit for Nigeria’s dynamic city life.

Arrizo 5

Arrizo 5, Chery’s stylish sedan that combines efficiency with cutting-edge technology, was part of the impressive lineup.

Many attendees were taken aback by the Arrizo 5’s seamless integration of petrol and CNG technology.

This appeals to those looking for sustainable and budget-friendly commuting options.

The sedan’s advanced safety features, plush interiors, and fuel efficiency made it a strong contender for those prioritizing both style and sustainability in a vehicle.

This year’s Lagos International Trade Fair saw an unprecedented turnout, with thousands of visitors exploring the diverse offerings from local and international brands.

Chery’s display not only highlighted the brand’s innovative automotive designs but also underscored its commitment to Nigeria’s automotive market.

The foot traffic at the Chery stand was a testament to the brand’s growing appeal, as well as Nigeria’s evolving automotive landscape, where demand for high-quality, dependable vehicles continues to rise.

Engagement with visitors

Beyond showcasing vehicles, Chery’s team engaged with visitors to explain the unique benefits of each model and answer questions.

This helped create a personal and informative experience for everyone who stopped by.

From live demonstrations to interactive sessions, Chery provided an immersive experience that helped attendeesj job understand the full scope of features each model offers, strengthening the brand’s connection with potential customers and automotive enthusiasts.

Carloha’s Sales Director, Mr. Joseph Omokhapue, says to make Chery ownership easy and affordable, highlighted their exclusive offers: a 6-year free service plan, 6-year/200,000 km warranty, and flexible auto financing options.

“These benefits are at the core of Carloha’s commitment,” he said, adding, “With fair pricing, nationwide 24/7 parts and service support, our customers can enjoy their Chery vehicles with complete peace of mind.”

Continue Reading

Railway

NRC increases trips on Abuja-Kaduna route from four to six 

Published

on

NRC increases trips on Abuja-Kaduna route from four to six 

 

The Nigerian Railway Corporation (NRC) has announced an increase in the number of trains on its Abuja-Kaduna Train Service (AKTS) route in response to rising demand based on its customer feedback.

A statement signed by the NRC Deputy Director of Public Relations, Yakub Mahmood, on Wednesday, said the number of trains had been increased to six from four, running Monday to Friday during peak periods.

This development, it added, aimed to enhance customer satisfaction by making commuting more convenient and accessible on the route as well as tackling complaints of ticket racketeering.

The statement quoted the acting Managing Director of the NRC, Ben Iloanusi, as saying that a five-month trend analysis revealed a 22 per cent increase in new passengers registering on the ticketing platform for the Abuja-Kaduna route.

The surge, he said, showed a growing preference among Nigerians for train travel as a comfortable, reliable, and safe commuting option.

The statement read, “The Nigerian Railway Corporation, reaffirming its commitment to responding to customer demands, improving customer satisfaction, and tackling complaints of ticket racketeering, has increased the number of train services from four to six from Monday to Friday when demand tends to peak on its AKTS route.”

The NRC also noted that similar trends had been observed on the Lagos-Ibadan, Warri-Itakpe, and Port Harcourt-Aba routes, with efforts already underway to enhance services along these routes as well.

The acting MD assured Nigerians of the increased presence of NRC senior management across all train service routes to drive continuous efficiency and tackle the issue of ticket racketeering head-on.

“Our valued customers are encouraged to use NRC ticket platforms online to take advantage of the increased services and avoid patronising ticket racketeers.

“Additional information can be obtained from the NRC website, www.nrc.gov.ng,” it stated.

The expanded services on the Abuja-Kaduna route, it said, followed similar enhancements on the Lagos-Ibadan route, which now includes additional trips on Fridays and Saturdays to accommodate increasing demand.

Continue Reading

Business

Naira trades for N1,740/$ in parallel market

Published

on

Naira trades for N1,740/$ in parallel market

The Naira yesterday depreciated to N1,740 per dollar in the parallel market from N1,735 per dollar on Tuesday.

Similarly , the Naira appreciated to N1,645.4 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,645.4 per dollar from N1,689.88 per dollar on Tuesday indicating N44.48 appreciation for the naira.

READ ALSO:

The volume of dollars traded (turnover) in the market rose by 122.5 percent to $236.84 million from $106.44 million sold on Tuesday.

Consequently, the margin between the parallel market and NAFEM rate widened to N94.6 per dollar from N45.12 per dollar on Tuesday.

Naira trades for N1,740/$ in parallel market

Continue Reading

Trending