Nigerian banks’ credit report poorest worldwide
The entire 22 deposit money banks in the country process a paltry 1,500 credit report on a daily basis, The Nation has learnt.
Making this disclosure recently was Mr. Miguel Llenas, who sits atop Dun and Bradstreet Credit Bureau Limited, a world acclaimed credit reporting agency with headquarters at the Dominican Republic.
Mr. Llenas, who was the lead speaker at a public forum organised by CRC Credit Bureau Limited in Lagos, noted that most banks in the country today were technically in distress because they chose to jettison core banking regulations.
Etisalat, lenders disagree over $1.2b loan settlement terms
Local lenders have opposed a proposal by Etisalat Nigeria to convert part of the $1.2 billion loan into naira. Rather, the lenders want its parent, Abu Dhabi telecoms group Etisalat, and its shareholders to recapitalise the telco, it was gathered yesterday.
A source privy to the negotiations said the seven-year syndicated loan, on which the telco defaulted in payment schedule, has a dollar portion of $235 million which the carrier wants to convert into naira to overcome chronic foreign exchange (forex) crunch at the interbank market.
“Etisalat is asking for us to convert the dollar component to naira but banks don’t want that option and have told them to talk to their parent to settle the loan,” Reuters quoted a banking source as saying. The source said the regulators, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which had waded into theimpasse and prevented a possible takeover of Etisalat Nigeria are favourably disposed to the naira conversion idea.
Banks increase lending rates in Q1 – CBN
The Central Bank of Nigeria, CBN, yesterday, said the spread between banks’ lending rates and the Monetary Policy Rate, MPR, widened in the first quarter of the year, indicating increase in lending rates during the quarter.
The CBN disclosed this in its Credit Conditions Survey report for first quarter of 2017. The report, among other things, indicated that improved economic outlook prompted increased availability of credit, increased demand and decline in loan default. It also revealed that spread on lending rates widened during the quarter.
FG Approves 10% Funding For N5m NHF Loans
The federal government has approved that National Housing Fund (NHF) loans of N5 million and below would attract 10% funding just as loan applicants would no longer make down payments of 10% of the house price.
The acting managing director of Federal Mortgage Bank of Nigeria (FMBN), Mr Richard Esin stated this at the commissioning of 252-unit FMBN/Lape housing Estate, Karu, developed by Lape Construction Services Limited under a Public Private Partnership (PPP) arrangement with Platinum Mortgage Bank Nigeria Limited.
Sitting on a two hectare land, the site is divided into two phases comprising of 295 units of 2 bedroom semi-detached bungalows already commissioned in the first phase as well as 34 units of 2 bedroom and 94 units of 3 bedroom detached units in this second phase.
Adeosun urges CBN to extend BVN to micro finance banks
The Minister of Finance, Mrs. Kemi Adeosun, has urged the Central Bank of Nigeria (CBN) to extend Bank Verification Number (BVN) requirement to account holders in Microfinance Banks (MFBs).
She said this would facilitate the detection of bank accounts which might have been opened and operated in such banks by ghost workers and other syndicates.
A statement by the ministry’s Director of Information, Mr. Salisu Dambatta in Abuja on Monday, said Adeosun had written to the CBN Governor, Mr. Godwin Emefiele, to make her case.
GT Bank to reduce loan growth to focus on bond investment
Nigeria's Guaranty Trust Bank (GT Bank) plans to reduce loan growth this year to focus on the increased profit to be had from maintaining domestic bond investment levels, its chief executive said on Wednesday.
Nigeria's government aims to fund half of this year's forecast budget deficit of 2.36 trillion naira ($7.73 billion)through the domestic debt market and has been selling bonds at yields of about 16 percent.
GT Bank's loan book has been at the mercy of last year's naira currency devaluation - which drove loan growth to 15.8 percent - and debt restructuring by oil companies hit by low crude prices.
BoI, Diamond Bank partner on N140b loan to cooperatives, farmers
The Bank of Industry (BoI) says it has partnered Diamond Bank to provide soft loans worth N140 billion to traders, artisans, cooperatives, youth and farmers.
Its Acting Managing Director, Mr Waheed Olagunju, stated this in Lagos during the launch of the Government Enterprise and Empowerment Programme (GEEP).
He said the Federal Government introduced the scheme because of its passion for sustainable business growth and micro-entrepreneurs empowerment.
He explained that under deal, BoI would disburse the cash to micro-entrepreneurs.
According to him, GEEP is one of the social intervention programmes of the Federal Government being executed by the bank.
Africa's Largest Data-Center Firm Raises $91 Million for Growth
Teraco Data Environments, which says it is the largest provider of data-center services in Africa, said it raised 1.2 billion rand ($90 million) from South African lender Barclays Africa Group Ltd. to invest in information-technology infrastructure on the continent.
The closely held business will use some of the cash to complete the construction of a new data center in eastern Johannesburg by the end of year, according to a statement e-mailed by the company on Tuesday.
Barclays Africa “understands our unique business model and the associated infrastructure funding requirements and timelines,’’ Chief Financial Officer Jan Hnizdo said. “The new site will be the largest commercial data center in Africa.’’
Tambuwal Flags Off N1.56bn Fadama III Agric Scheme
Governor Aminu Waziri Tambuwal has flagged off Fadama III additional financing for the year 2016/2017 dry season intervention in Sokoto State.
The event, which held at Kurfi village of Kware LGA, will cover the 23 local government councils with a combined cost of N1.56 billion.
The programme was aimed at distribution of agricultural inputs equipment, agro-chemicals and other farm tools to ninety production clusters comprising 611 production groups across the crops value chain of rice, sorghum and tomato.
BoI, Kebbi to float N2bn MSMEs fund
The Bank of Industry (BoI) and Kebbi State government have agreed to set up N2 billion loan scheme to support entrepreneurship development in the state.
The Acting Managing Director of BoI, Mr. Waheed Olagunju, disclosed this after a visit to Kebbi State Governor, Abubakar Atiku Bagudu, at the weekend.
He said the fund which would be made up by contribution of N1 billion by each party, would be dedicated to assisting the development of Micro, Small and Medium Enterprises in the state.
The BoI boss also maintained that the agricultural sub-sector would be given priority in the disbursement of the fund.
BoI canvasses more women enterprise financing
There is a need to increase funding to women-owned enterprises, Bank of Industry (BoI) has said.
Its Group Head, Gender Business Department, Adebisi Ajayi, said fund disbursement to firms owned by women constituted three per cent of its lendings.
Ajayi, who spoke at a BoI’s event to honour women, said only 49 per cent of women entrepreneurs accessed finance from banks, adding that the N13 billion earmarked for women enterprises should be reviewed upward.
According to her, women have migrated from seeking micro credit business support to focusing on large-scale enterprises with huge capital requirement.
Ajayi urged banks to support BoI in financing the real sector, and not just traders, to facilitate job creation and develop the economy.
2,000 get N600 million for rice farming
BUA Group of Companies has paid over N600 million to over 2,000 farmers to boost rice production in Kano State.
Its Executive Director, Alhaji Kabiru Rabiu, who spoke at the distribution of farming tools to the farmers at Imawa Village, Kura Local Government Area of the state, said the company ventured into the project in line with President Muhammadu Buhari’s agenda to diversify into agriculture as an alternative to oil.
Rabiu said the company had given N288,000 interest-free loan to each of the 2,000 farmers in the first phase of the scheme, which is is targeting 50,000 rice farmers within four years.
FMBN spends N1.4b on housing units in Niger
The Federal Mortgage Bank of Nigeria (FMBN) has disclosed that N1.4 billion have been expended for the development of 379 housing units in Niger State just as the Minister of State for Power, Works and Housing, Alhaji Mustapha Baba Shehuri, said the nation needs 17 million houses to meet up with the challenge of housing deficit.
The Minister who stated this at the commissioning of the Federal Mortgage Bank of Nigeria and Sea Mountain 133 Housing Estate in Minna, Niger state said that with the need of 720, 000 housing units per annum, the annual aggregate production of 100 housing units is not tenable to meet the huge gap of housing in the nation.