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Banks, Insurance Firms Investing Poorly In Housing  – FMBN

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The Federal Mortgage Bank of Nigeria (FMBN), has said that banks and insurance companies have failed to make the required investment in the National Housing Fund (NHF) scheme since the enactment of the Act .
Managing Director of FMBN, Ahmed Dangiwa, said this in his presentation at the office of the bank in Abuja, while playing host to the Senate Committee on Housing, recently.
The committee visited the bank as part of its oversight function on ministries , departments and agencies of government.
Dangiwa told his guests that the potential of the investment by banks and insurance firms in the fund was significant to addressing the financial housing needs across the country.
He said in 2016 alone, Deposit Money Banks had a combined loan of N15tn, which would have attracted not less than 50 per cent of N1.5tn investment in the NHF schemes as 10 per cent of the banks’ loan portfolio.
The mortgage bank boss further stated that only two states of the federation, Kano and Oyo, were yet to rejoin the NHF scheme by way of deductions and remittances required from the states’ local government employees.
Dangiwa said the bank intended to expand its NHF contributor base from the current five million by seeking the integration of the informal sector.
It said the bank would adopt strategic cooperative societies, which majority of the informal sector groups belong, as it would enable the bank to mobilise operators in that space and grant them access to FMBN’s products and services.
The FMBN boss also pleaded for the support of the National Assembly to revisit the bill for the N500bn recapitalisation of the bank .
He said in 2018, the National Assembly passed the bill to review the FMBN and NHF Acts respectively, adding that the President withheld assent to the bill in 2019.
He said: “The support of the Senate Committee is required for a review of the bills and further consultation and inputs from stakeholders to ensure the re-presentation of the bills for the president’s assent .
“One of the bills provides for a new capital structure for the bank and a new capital base of N500bn, which will improve corporate governance by inclusion of labour representatives on the board.
“It will also empower the bank to exercise the power to raise funds from the local and foreign capital markets”.
The Chairman, Senate Committee on Housing, Senator Sam Egwu, assured the bank that the National Assembly would support FMBN on the issue of compliance by banks and insurance companies.
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Bayelsa Seeks China’s Partnership To Boost Dev

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The governor of Bayelsa State, Douye Diri, has sought the assistance of the People’s Republic of China for infrastructure, agriculture, technology and education development in the state.
A statement made available to newsmen at the weekend quoted Diri as making the request last Friday when he visited the Chinese Ambassador to Nigeria, Mr Cui Jianchun, at its embassy in Abuja.
Diri, who recalled the Chinese President’s statement that his country was willing to partner with Nigeria to reduce poverty, said Bayelsa would be the right destination for such intervention.
He commended the China Civil Engineering Construction Corporation for its work on the Yenagoa-Oporoma and Gloryland Drive road projects.
The governor was quoted to have said, “We believe Bayelsa State offers a considerable window to the world and will be a spectacular platform to showcase the BRI in the building of roads that traverse several water bodies as well as providing access to inexhaustible reserves of resources in the coasts of Bayelsa.
“Our state’s expansive coastline is ideal for fishing, tourism and wind energy. Our government has identified agriculture as the main sector within which it will achieve sustainable development and growth. We have already identified four areas to substantially invest in, which are fish farming, rice, cassava and plantain cultivation”.
Diri stressed that with the requisite legal framework in place and available human resources, Bayelsa was ready to welcome investors and industry experts for the collaborative development of a centre for machine learning and artificial intelligence.
“The technological revolution that this would engender would be a force to improve and empower thousands of people across Nigeria and Africa in general.
 ”There are opportunities to establish new tech hubs across all the eight-local government headquarters in the state,” he added.
In his remarks, Ambassador Cui Jianchun said China and Nigeria had a lot in common. The envoy noted that 12 years ago, China had over 87 million people living below the poverty line but that by February this year, they had all crossed above the line.
Presenting an economic strategy document to the governor, Jianchun said if China with its large population could overcome poverty, Nigeria could also do by adopting the right policies.

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Currency In Circulation Rises To N2.84trn  – CBN

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The Central Bank of Nigeria (CBN) has said that the currency in circulation (CIC) rose by N58.36 billion within one month. 
The latest figures which were made available by the CBN on Sunday showed that the currency in circulation rose from N2.79 trillion in August to N2.84 trillion in September, this year. 
From the end of June, the currency in circulation rose from N2.74 trillion to N2.81 trillion in July. It fell to N2.79 trillion in May from about N2.80 trillion at the end of April.
According to the CBN, the broad money supply rose to 5.83 per cent in August from 2.91 per cent in July.
The apex bank said the rise in currency circulation was largely driven by the growth of net foreign assets and net domestic assets by 12.35 and 4.30 per cent respectively in August 2021, compared to 1.84 and 3.17 per cent in July.
According to the bank, the growth in net foreign assets was largely driven by an increase in foreign asset holdings of commercial and merchant banks.
It said the increase in net domestic assets reflected the boost to aggregate credit net, which increased to 8.14 per cent in August from 5.71 per cent in July.
In the money market, the monthly weighted average interbank call and open buyback rates increased to 13.45 and 12.97 per cent in August respectively from 10.72 and 11.60 per cent in July.
This increase reflected the tight liquidity conditions in the banking system during the review period as the bank curtailed excess system liquidity, according to the CBN. 
Currency in circulation is defined as the currency outside the vaults of the Central Bank – that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks (DMB). 
The CBN said it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in the country.
It said this approach involved tracking the movements in currency in circulation on a transaction-by-transaction basis.
According to the CBN, for every withdrawal made by a DMB at one of CBN’s branches, an increase in CIC is recorded; and for every deposit made by a DMB at one of CBN’s branches, a decrease in CIC is recorded.
The transactions are all recorded in the CBN’s CIC account, and the balance on the account at any point in time represents the country’s currency in circulation.

By: Corlins Walter

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Large Expenditure Responsible For Nigeria’s High Debt Service  -Minister

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The Minister of Finance, Zainab Ahmed, has blamed Nigeria’s high debt service-to-revenue ratio on the country’s large expenditure base.
The minister who disclosed this during a live television interview with Bloomberg TV at the weekend, noted that a huge chunk of Nigeria’s budget was dedicated to the recurrent expenditure.
“Our debt service to overall revenue is high because we have a very large expenditure base. We have a large proportion of our budget dedicated to payroll, and Mr President had decided from the beginning of his administration that we were not going to disengage staff.
“So, you have to pay salaries, you have to pay pensions. And also, we have to fund the other arms of government, which are the judiciary and the legislature”, she said.
Ahmed, however, expressed hope in oil prices, stating that the current rise would help the country earn more revenue from the sale to other countries.
According to her, high price of oil means that we would be able to earn more revenue, and that $85 per barrel is way above the $40 per barrel that we have on our 2021 fiscal projections.
She, however, noted that buying back petroleum products from other countries due to moribund refineries affected Nigeria’s revenue profile.

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