Details As CBN Releases N671.47Billion To Nigerian Banks In Five Days


The Deposit Money Banks in the country borrowed the sum of N671.47bn from the Central Bank of Nigeria in the past five working days, data from the CBN have revealed.

The CBN Standing Lending Facility window data revealed that commercial banks borrowed the sum between December 11 and 15, 2017.

Commercial banks use the CBN’s SLF to support their liquidity shortfalls and meet trading obligations on short term basis.

The amounts borrowed were: N178.02bn, N135.3bn, N123.77bn, N116.73bn and N117.64bn, respectively.

The N671bn borrowed last week was, however, 34 per cent lower than the N1.019tn the banks borrowed from the CBN the previous week.

The CBN SLF data showed that banks borrowed N231.92bn, N217.08bn, N228.26bn, N178.28bn, and N164bn respectively from the central bank between December 4 and 8, 2017.

During the last week in November, borrowing from the CBN by banks rose by 52 per cent, attributable to liquidity scarcity and banks demand for funds to participate in the special foreign exchange auctions conducted by the regulator.

They had borrowed N870.9bn from CBN, as against N574bn the previous week.

In November, commercial banks borrowed N2.77tn with an average amount of N154bn.

The highest and lowest amount commercial banks borrowed from the central bank last month was N260bn and N108bn, respectively.

Economic and financial experts said that the CBN’s lending to banks had increased in recent times on the back of liquidity issues in the economy.

Banks with liquidity challenges are often seen more on the CBN SLF window than others. For example, Skye Bank Plc was said to be more frequent on the CBN SLF window months before the CBN sacked its board and appointed a new one.

CBN, which is described as a lender of last resort, has been accused of lending more to the Federal Government in recent months.

A member of the CBN Monetary Policy Committee, Dr. Doyin Salami, had recently accused the central bank of acting like a “piggy bank” with its funding of the government.

Salami said he was struggling to understand the CBN’s economic rationale for such action.

Monetary data showed a “sharp rise” in the CBN’s financing of the government deficit this year, Salami said after the MPC meeting some months ago.

He said the CBN’s claims on the government had risen “20-fold” to N814bn from the end of 2016, while its purchases of government treasury bills increased by 30 per cent to N454bn.

“It is clear that the CBN has provided piggy-bank services to the federal government,” Salami said.

“While I still wonder what the underlying economics is, I sincerely hope it works,” he added.

The Federal Government is struggling to raise enough revenue amid economic challenges.

Source: Punch

Comments

Post a Comment

Popular posts from this blog

Billionaire Akanimo Udofia Responsible For Oil Man Igho Sanomi's Crashed Marriage

Image
How The Erstwhile Brothers-in-Law Became Enemies Over Infidelity-based Allegations The marriage between billionaire oil magnate and philanthropist, Igho Charles Sanomi, and his wife, Eghonghon, has crashed. Eghonghon has moved out of her matrimonial home with the four children from the union, and has even filed for a divorce. Predictably, Sanomi, whose world revolves around his family, is distraught and devastated by this downward turn of event. Never would he, or even, Eghonghon, have thought that the love they had been nurturing from their college days, would come to such an abrupt end. Sources disclosed to The ELITES that the marriage between Sanomi and Eghonghon crashed as a result of myriad of problems, which was completely beyond the couple’s control. Somehow, the news of their crashed marriage was only known to just the couple’s families and close friends. Tragically too, the blame for the Sanomis’ crashed union, is being leveled on Akanimo Udofia, the billionaire busi...
Read more

Single Mother Temitope Adesegun Is Ooni Ogunwusi's Soon-To-Be Wife

Image
Ooni of Ife, Adeyeye Enitan Ogunwusi has chosen his main heartthrob. And she is identified as “Tope Adesegun”. “The full name is actually Temitope Adesegun” a source disclosed. Light skinned and label a “beauty to behold”, the latest sweetheart of the leading monarch is said to have a two-year-old daughter. Details of the circumstances of the former life that transformed Tope into a single mother are sketchy. “But whatever she went through, it is obvious what she has going with the Ooni is far better” a source disclosed. Societynow.ng gathered that Tope pushes above heavy interests from quite a tidy number of other women to assume current status with the Ooni. Twice divorced – one before he became the Ooni – Oba Ogunwusi is “single” and has transformed the subject of intense wooing from women and family of all shades of colours. Source: Societynow
Read more

Oba Elegushi's New Wife, Hadiza Won't Live Under Same Roof With Olori Aramide

Image
Hadiza, the new wife of Oba Saheed Ademola Elegushi would be living apart from first wife Olori Sekinat Aramide – for now. Sources confirmed that based on existing arrangement new wife Hadiza would be primarily based in Abuja with periodic visits to Lagos state. Young king Elegushi popularly known as King Gushi is the Elegushi of Ikate Land, which is one of the pieces of Lagos state. Sources disclosed that the reasons behind the strategy of King Gushi’s new wife, Hadiza opting to live apart from the first wife Seki are two folds. ‘’To protect her business and maintain the peace while the anger of the first wife cools off’’ societynow.ng learned. Olori Sekinat is said to have kicked very against Oba Elegushi’s marriage to Hadiza, the new Olori when she was informed. Sources disclosed Oba Elegushi had stayed well ahead of the consequence of his first wife’s anger -and strong opposition – by informing her of the plan to take a second wife when she could do little or nothing to st...
Read more