Author

SIR 3PU

Browsing

CBN Resumes Sales Of Dollars To Nigerian Students, SMEs

 

CBN has resumed the sales of US dollars to Nigerian students in foreign schools, SMEs for important usage.

 

The Central Bank of Nigeria revealed the body has resumed sales of dollars to Nigerian students who study abroad and need to pay their school fees. This also applies to Small-Medium Enterprises who really needs foreign exchange for essential imports.

 

The statement reads;

“In view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria.

The Central Bank of Nigeria (CBN) has resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay school feels and students and SMEs wishing to make essential imports needed to revamp economic activities across the country.

In particular, the CBN is resuming the provision of over USD$ 100 per week for both categories.”

“There is therefore no need for panic by any end-user that could necessitate recourse to illegitimate sources and spike in foreign exchange rates.”

Meanwhile, the CBN said it has intensified its surveillance efforts in a bid to detect the activities of market speculators, Forex smugglers, and illegal users. Those found guilty will be prosecuted and receive the penalty for his/her crimes committed without wasting time.

Share this on social media

N850bn Loan Request By President Buhari Gets Senate Approval

The N850Bn loan request by Nigerian President Muhammadu Buhari has been approved by the Senate after their meet up today.

 

The Nigerian lawmakers, Senate has approved N850Bn (Eight Hundred And Fifty Billion Naira Only) loan request by President Buhari to finance projects in the 2020 budget from the Capital Market.

However, on Tuesday, the senate instantly approved the request for the loan.

It further mandated its Committees on Finance and Appropriation to liaise with the Minister of Finance, Mrs Zainab Ahmad for details of the loan.

To be recalled that President Buhari had requested for the approval of Senate for the N850billion loan to finance the 2020 budget.

The request was conveyed in a letter addressed to President of the Senate, Dr Ahmad Lawan and read at the plenary.

The President hoped in the letter to raise the loan from the domestic capital market to ensure adequate funds to finance projects in the budget.

Meanwhile, Senator Lawan after the approval directed the Senate Committee on Finance in order to get further details of the loan, to liaise with the Minister for budget and national planning.

 

Share this with friends

3 Nigerian Banks Lower Dollar Spending Limit On Debit Cards

 

Three Nigerian Banks has reduced the monthly Dollar spending limit on debit cards due to the falling of cruide oil price and the suffering of Naira against Dollar.

In response to the decline in dollar supply as well as rising demand, some banks, namely GTBank, Zenith, Fidelity reduced the monthly dollar spending limit on debit their cards.

However, Zenith Bank reduced monthly limits to $1,000 and Guaranty Trust Bank reduced monthly limits to $500. Fidelity Bank on its part reduced monthly limits to $1,000 from $3,000.

Other banks may follow their steps very soon.

In addition to Covid-19 Pandemic rattling effect on the foreign exchange and fixed income markets, this pandemic has also caused massive disruption in banking services, as banks implement social distancing rules, in a bid to battle the spread of deadly Coronavirus.

The banking service was also reduced to skeletal operations in across the country, with transactions restricted to electronic payment channels and ATMs for cash withdrawals.

For example, from the third week in March and prior to the lockdown of Lagos, Ogun States and Abuja, most banks directed non essential staff to work home.

Meanwhile, Banks also restricted the number of customers allowed inside the banking halls per time to 25 people, leading to massive crowds outside banking halls with customers spending more time to gain entry into the banking hall.

The lockdown in Lagos, Ogun and Abuja has led the CBN to suspend cheque clearing activities till further notice.

 

Share this on social media

Financial Results : Polaris Bank Records Impressive 2019

 

The financial results of Polaris Bank of Nigeria for the year 2019 are highly impressive.

 

The Polaris Bank of Nigeria has released its 2019 financial results after securing the approval of the Central Bank of Nigeria (CBN) to its Annual Financial Statements for its first full financial year of operation.

By all objective standards, the results are impressive especially given the legacy constraints under which the institution was birthed.

 

The Annual Financial Statements ending December 31, 2019 show gross earnings of over N150billion, Profit before Tax of N27.83billion and Profit after Tax of N27.35billion showing very strong profitability and profit potential going forward.

The bank’s deposits from customers was N857.8billion with Total Assets in excess of N1.14Trillion confirming that Polaris Bank remains a systemically important bank within the Nigerian financial system.

The bank’s capital is multiples of the regulatory minimum of N25billion at N82.9billion with a Capital Adequacy Ratio of 14% providing sufficient capital buffers to customers and other counterparties.

 

Apart from strong capital adequacy, the bank’s other ratios are equally impressive- Return on Assets (ROA) at 2%, Return on Equity (ROE) is 33%, Return on Sales (ROS) is 18%, and Liquidity Ratio at 81%.

These ratios demonstrate operating efficiency, strong inherent capacity for profitability and returns to stakeholders, very comfortable liquidity and asset efficiency.

The bank’s Cost to Income ratio of 59% is well in line with industry averages and further reinforces the institution’s underlying reality of operational and cost efficiencies, which is a significant achievement in view of its legacy constraints.

One remaining legacy challenge, perhaps understandably, is that the bank’s Non- Performing Loans Ratio (NPL) is 46%. Even though the management has brought this ratio down to this level from around 80% at the time of the regulatory intervention, it is evident that the work of the management of Polaris Bank to clean up its inherited loan portfolio must continue until NPLs are within acceptable

 

 

In Review of Polaris Bank Financial Results for 2019

 

Our key conclusions suggest four main themes emerge from Polaris Bank’s first year performance. In our view these themes are overwhelmingly positive:-

1. The financial performance of Polaris Bank in its first full financial year is impressive and the bank is stable, strong and competitive relative to leading Tier 1 and Tier 2 banks.

2. The Board and Management of Polaris Bank has successfully repositioned a previously troubled bank and created a new, thriving, forward-thinking bank

 

3. The bank has largely overcome its legacy challenges and constraints and is now very well positioned to compete in the Nigerian Financial Services Industry

4. The Management of Polaris Bank in concert with regulators seeks to assure a sustainable future for the bank and its customers leveraging technology, digital transformation and innovation in the context of a retail banking strategy

Report by RTC Advisory Services Ltd, Lagos.

 

Source: Vanguard

 

Share to your friends and family

 

How To Apply For CBN 50B Loan For COVID-19 Intervention

The Central Bank of Nigeria (CBN) has launched a Covid-19 Intervention loan of N50 Billion to support Nigerians and Businesses, see how to apply.

 

COVID-19 intervention loan.

In line with the ongoing world deadliest pandemic of our time, citing damages and losses suffered by businesses and lockdown has led the Central Bank of Nigeria (CBN) to rolled out a loan aimed at ameliorating the effect on businesses.

The CBN has introduced a N50b Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic, and guidelines to access the funds.

However, The Central Bank of Nigeria says interested stakeholders must meet its set criteria to access the N50bn intervention loan for small and medium businesses.

 

How To Apply For COVID-19 Intervention Loan

Eligible households or MSMEs; shall submit applications directly to NIRSAL Microfinance Bank; and the application must, among others, contain;

  • BVN number
  • Business registration (where applicable)
  • Business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

 

NMFB shall appraise and conduct due diligence applications; upon satisfactory appraisal of application, NMFB shall forward the applications to the CBN for final approval.

CBN will review the applications and gives final approval for disbursement to NMFB.

The bank stated that eligible participants for the COVID-19 intervention loan were households and existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic.

The enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 Pandemic.

Activities covered under the guidelines include; Agricultural value chain activities, Hospitality (accommodation and food services), Health (pharmaceuticals and medical supplies), Airline service providers, Manufacturing/value addition, trading, and any other income generating activities as may be prescribed by the CBN.

It stated that the eligible participating financial institution for the scheme is NIRSAL Microfinance Bank.

The CBN further revealed that the loan amount would be determined based on the activity, cashflow and industry/segment size of beneficiary, subject to a maximum of N25m for SMEs; and households could access a maximum of N3m.

It stated that working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover (where the enterprise was not up to three years in operation, 25 per cent of the previous year’s turnover would suffice).

It added that interest rate under the intervention would be five per cent per annum (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility would revert to nine per cent (all inclusive) as from 1st March 2021.

The regulator stated that working capital would be for a maximum period of one year, with no option for rollover, while term loan would have a maximum tenor of not more than three years with, at least, one year moratorium.

It stated that the collateral to be pledged by beneficiaries under the COVID-19 intervention loan must be acceptable by NIRSAL MFB, but may include any one or more of others which are moveable assets duly registered on the National Collateral Registry; simple deposit of title documents, in perfectible state; and deed of debenture (for stocks), in perfectible state.

Others were irrevocable domiciliation of proceeds; two acceptable guarantors; personal guarantee of the promoter of the business; life insurance of the key-man, with NMFB noted as the first loss payee; and comprehensive insurance over the asset.

Source: Punch NG

Share to your friends and family.

CORONAVIRUS (Covid-19) : GTBank Stops Repayment Of Loans For 90 Days

 

Guaranty Trust Bank also known as GTBank has announced its hold on loan repayment for all small and medium enterprises (SMEs) due to Covid-19 Pandemic.

 

GTBank of Nigeria has placed a hold on its loan repayment plan for all Small and Medium Enterprises (SMEs) that have obtained credit facilities from the bank.

The bank revealed this decision is made to reduce the effect of the Coronavirus pandemic on SMEs amid the lockdown.

However, This was revealed and shared via its social media handle and it reads,

“As a result of the Covid-19 pandemic, and because small businesses have had to stay closed to stay safe, we’re giving a 90-day moratorium on repayment of the following loans.”

The bank explained that the exempted businesses are those in the food industry, fashion industry, and quick credit for businesses would enjoy a moratorium of 90 days on such loans.

This means that small businesses in the aforementioned categories have three months to continue to pay their loans.

The nation’s capital, Abuja, Lagos and Ogun states have been badly hit by the effect of COVID-19 lockdown order issued by President Muhammadu Buhari with the aim to stop the spread of the COVID-19 pandemic which has disrupted business activities.

 

In this case, Covid-19 Pandemic and lockdown has affected many business throughout the nation and to be recalled that GTBank has earlier donated some materials to the federal Government of Nigeria in support to stop the spread of deadly disease, Coronavirus.

 

Share this on social media