₦airaland Forum

IN compliance with the Central Bank of Nigeria’s review of the minimum interest rate on savings deposits to 10 per cent of Monetary Policy Rate (MPR), Deposit Money Banks (DMBs) have started sending out email and text messages to customers informing them of the reduction on savings accounts to 1.25 per cent.

The slight reduction in banks’ funding cost according to experts will save a lot of cost for banks, just as it is a way of widening the negative real interest rate on customer deposits.

The CBN in a circular to all banks directed that the minimum interest rate on savings deposits be reduced to a minimum of 10 per cent of MPR, or 1.25 per cent from the previous minimum of 30 per cent of MPR, or 3.75 per cent.

According to the circular, the new interest rate regime is to take effect from September 1, 2020.

Broadly speaking, experts at FBNQuest Research believe that given that savings deposits account for around 20 per cent of the deposit liabilities of commercial banks, the new directive should be positive for banks in terms of a slight reduction in their overall cost of funds.

“All else being equal, our back of the envelope calculations indicate that on average, the cost of funds for our universe of banks could potentially decline by around 50 basis points (bps) in the fourth Quarter (Q4).

“In terms of earnings impact, we estimate an average increase of around +8 per cent in the 2020 PBT for our banks universe,” the research firm stated in a note to clients.

According to FBNQuest Research, banks with already low cost of funds such as GT Bank and Zenith will benefit the least from the interest rate reduction.

However, given the stringent rules around interest on savings, it is doubtful that the impact will be that material.

“Our reason is simple. Statutory provisions indicate that customer savings accounts will be ineligible for (monthly) interest rate payments in any month where a customer makes more than 4 withdrawals.

“Typically, most savings account holders fall within the retail segment of customers with a high frequency of withdrawals from their accounts on a monthly basis.

“Consequently, for most banks, the average funding cost for savings deposits is much lower than the 3.75 per cent implied by the MPR,” it stated.

It further noted that given an inflation rate trending above 12 per cent (12.8 per cent July 2020), the negative interest earned on savings deposit accounts will widen to -11.5 per cent from the -8.7 per cent rate implied by the former interest rate regime.

Despite limited investment outlets due to the subdued interest rate environment, the firm believes that some bank customers might be encouraged to take a second look at alternative asset classes such as equities.

“In our view, with most banks trading below book value, we believe that a significant portion of banks’ credit risks is already reflected in their share prices.

“Despite the deterioration in the macro environment, GT Bank and Zenith, our preferred names within the sector, have adequate capital and liquidity buffers to withstand potential shocks,” the firm said in a note to clients.

https://tribuneonlineng.com/banks-begin-reduction-of-interest-rate-on-savings-account/

The National Agency for Food and Drug Administration and Control (NAFDAC) has urged herbal medicine practitioners to collaborate with researchers to make herbal products internationally acceptable after clinical trials.

Prof. Mojisola Adeyeye, the Director-General of the agency, made the plea on Tuesday.

Adeyeye said in a statement that the African Traditional Medicines Day that holds every Aug. 31 should be a daily reflection of who we are as Africans.

She said that many Nigerians were using herbal medicine every day.

“NAFDAC has been focussing on making traditional herbal medicines prominent with regards to its activities.

“To this end, in March 2019, long before the advent of COVID-19 in Nigeria, we called for a meeting of all stakeholders including academia, herbal medicine practitioners and legal practitioners.

“The essence of the meeting was to engender a culture of collaborative efforts aimed at promoting research, discovery and production of herbal products,” she said.

According to her, herbal medicines renaissance in Nigeria had already begun.

She said the country has the biodiversity and complementary human capital to sustain herbal medicines production.

“The Federal Government, through the Central Bank of Nigeria (CBN), is making loans available to qualified manufacturers of pharmaceutical products.

“The CBN has also launched the Health Sector Research and Development Intervention Scheme to fund successful proposals on translational R& and manufacturing of therapeutics, herbal medicines and medical devices for infectious diseases, including COVID-19.

“In addition, the Tertiary Education Trust Fund (TETFund) is funding COVID-19 related herbal medicines clinical trial research through NAFDAC administrative oversight.

“The agency currently has about 40 applications on COVID-19 related herbal medicines submitted by interested parties, many of these are for listing, while only very few are for clinical trials.

“It is important to note that while the listing of herbal product guarantees safety, it is for two years at the first instance.

“A herbal product that has successfully gone through clinical trials would receive NAFDAC full registration and the claims of efficacy and cure can then be made by applicants,” she said.

Adeyeye said that further step to enhance collaborative efforts between the various stakeholders in the herbal medicines industry was the institutionalisation of confidentiality agreement among the parties.

“NAFDAC Legal Services Directorate developed the document and will broker the agreement.

“This is necessary to assure traditional practitioners that intellectual property will not be lost in the process of collaboration.

“The Ministry of Industry, Trade and Investment, Trade Mark Office, National Office for Technology Acquisition and Promotion and patent legal practitioners in the area of protection of intellectual property were brought into discussions with the researchers and practitioners by the agency.

“NAFDAC development of modalities for registration of herbal products is to encourage the growth and standardisation of the sector,” the director-general said.

She said that the ultimate goal, with regards to traditional herbal medicines, was to come up with products that were not only marketable in the country but also acceptable globally.

Adeyeye said this could only happen when NAFDAC, as the regulatory authority, subjects products that were submitted for approval to global standards.

She, however, encouraged everyone with products to bring their applications forward.

According to her, registration procedures are already made simple through the published template of required documentation, guidance on registration and clinical trials and the agency’s online platform.

https://guardian.ng/news/nafdac-wants-herbal-medicines-practitioners-to-collaborate-with-researchers-on-acceptable-products/

The Police Command in Borno State has said it will not tolerate any form of protests.

Spokesman of the command, Edet Okon, gave the warning in a statement on Tuesday.

He said public demonstrations were capable of disrupting the “hard-earned peace in the state’’.

Okon said that some groups were planning to protest against the hike in fuel price, electricity tariff, working conditions of state civil servants and N-power programme.

“Such protest will not be condoned by the command as this may sabotage efforts of the Federal and State Governments and that of the security agencies to ensure that the emerging peace and security in the state is sustained.

“The command is using this opportunity to remind members of the public that there is a ban on public rallies and all forms of procession in the state, and this ban, at the moment still subsist.”

The command advised that all forms of grievances be addressed to relevant authorities.

Okon also noted that the organized labour via a press release on Monday had disowned “any form of agitation/protest.”

The police warned all prospective protesters to steer clear of Borno State and respect the laws of the land.

https://www.ripplesnigeria.com/hike-in-fuel-electricity-prices-police-ban-protests-in-borno/

They should resign then....incompetents

About time.....mere commissioner

Melanin.....but they no go talk am.

This can never happen in my town..............

Never heard of him.....but rest in peace.

Somebody who should have stepped down in 2019....

[img]https://media./images/4d4aa1d2de6396a5c2b81d4eec44bf01/tenor.gif[/img]

Liar...Mohammed

shut your stinking mouth!

[img]https://media./images/db4be02e351af5987d2f92af7cb9acbf/tenor.gif[/img]

Lol...

Buhari....get of our necks!

[img]https://media./images/c4d02b874597c933faedd4b8fcc2af0a/tenor.gif[/img]

Story...

At least three major UK-based companies appear set to deliver a fatal blow to Nigeria’s economy due to the cluelessness of the Muhammadu Buhari administration. P&ID is already an infamous example of how having an inept leader is about to cause Nigeria to lose almost $10 billion from our foreign reserves, or other foreign assets, simply because Buhari did not set up his cabinet for six months after being sworn in, and left government to his unelected cabal, who were more interested in lining their pockets.

Additionally, Buhari erroneously thought the P&ID contract was signed under former President Goodluck Jonathan. So he dragged his foot and instead approached a US court for a subpoena, which he got, to search for hidden accounts held by Jonathan. Alas, he found none (because none exists), and it was belatedly brought to his attention that the contract was signed under former President Umaru Musa Yar’Adua, and specifically by Rilwan Lukman, who ironically was a crony of Buhari. And now, due to a mix of tribalism and ineptitude, Nigeria is stuck with a $9.6 billion judgment debt.

And then there is the Azura power purchase agreement (PPAs) and loan guarantee, which former President Jonathan wisely refused to sign, but which, unlike the former president, Buhari agreed to sign. By signing an indemnity clause for a World Bank loan, President Buhari has now saddled Nigeria with a compulsory monthly payment of $30 million a month, whether or not the plant takes off and delivers as scheduled.

And now, for the latest one. Another European company, Eurafic Power Limited, has secured a judgment debt against Nigeria because the Buhari administration mishandled a simple contractual agreement. As you read it, they are in the process of placing a lien on 33 assets Nigeria has in the United Kingdom.

Why do these gaffes keep on occurring and reoccurring on Buhari’s watch? This is not the first time this is happening. Nigerians in their 40s and above would remember that in 1984, General Buhari also unilaterally and without thought to the consequences, cancelled the Lagos Metro-Line project of the Lateef Jakande-led civilian administration, and incurred a judgment debt to Nigeria of the whole sum of the contract, as punitive damages.

In other words, we paid for the project, and we still did not get the project. It is precisely because of Buhari’s ineptitude that Nigeria went from being the world’s third fastest growing economy, in 2015, to the world headquarters for extreme poverty today. Buhari is a plague, a cancer, a cankerworm and a disaster that should never have befallen Nigeria or any other nation on Earth.

And these unforced errors are taking a toll on Nigeria’s finances. The rats have sensed that we are sinking under Buhari and are abandoning ship. There has been an unprecedented exit of foreign investment from Nigeria. We have lost our place as West Africa’s top recipient of Foreign Direct Investment to Ghana. And the reason for this is not #COVID19. Ghana also suffered from the coronavirus. By the end of the second quarter of 2020, foreign investment inflow into Nigeria was ₦ 143.65 billion. That may look good on paper until you factor in the fact that outflow stood at ₦287.57 billion. The inconvenient truth is that Nigeria experiences a negative FDI flow of ₦143.92 billion.

And the government’s recent actions show that the penny has not dropped for them. Rather than stimulate the economy, they are taking measures that will ensure the ruination of the economy. America plans a new $2 trillion stimulus for citizens in the wake of #COVID19 (this is in addition to the $2 trillion they have already given). Ghana has been paying utility bills for citizens for months. And Nigeria’s answer to COVID19 is increasing electric and fuel prices? Instead of a September to remember, Buhari has given Nigerians a September to dismember their hopes, dreams and aspirations. Nigeria badly needs a new occupant in Aso Rock!

On September 1, 2020, the National Electricity Regulatory Commission, NERC, increased electricity tariffs and the Petroleum Products Pricing Regulations Agency, PPPRA, also increased fuel prices. In a country that is already the world headquarters for extreme poverty. How much more can Nigerians take?

This is the same country that wanted to spend $500 million renovating the Nigerian Television Authority (NTA). If the government has such careless money to throw around on an unnecessary expenditure (who even listens to NTA), then why burden citizens with such burdens as this recent increase in tariffs?

And to make matters worse, the All Progressives Congress released a statement blaming the Peoples Democratic Party for the new fuel price increase. Five years in power and they are still bowling? When will these people ever take responsibility for their actions?

Meanwhile, true to his Taqiyya nature, Buhari lied during the 2015 campaigns that he would sell off our Presidential jets and cut down on the running costs of the Presidency. This is his fifth year in power, and he has not sold even one plane. Instead, his children use Presidential jets to attend private functions! Imagine what would happen if ex-President Jonathan had done that!

And to crown it all, you have a President that cannot manage his own home (his wife and his relations fight publicly at Aso Rock), that can’t manage the Boko Haram war, or the economy, or our relationship with Ghana, yet he wants to use CAMA to manage the affairs of churches that are managing their affairs better than his? Is Buhari even okay at all? It makes more sense for him to call on the churches he wants to manage to come and manage both him and his government. Who should be managing who? This is a man who signed a document where his name was written wrong. You can’t manage your name, and you want to manage their game?

All of these remind me of something former President Jonathan said on Wednesday, December 10, 2014:
“The choice before Nigerians in the coming elections is simple: A choice between going forward or going backwards; between the new ways and the old ways; between freedom and repression; between a record of visible achievements and beneficial reforms – and desperate power-seekers with empty promises.”

Was Dr Goodluck Jonathan wrong? Nigerians are now in a position to make an informed judgment.

Reno’s Nuggets
The very first income you enjoy in life is your mother’s breast. Two of them. Not one. Again, I repeat, not one! From the day you were born, nature was teaching you never to rely on a single source of income. If one breast does not produce milk, the other will. If your mother had only one breast, and that single breast fails to produce breast milk, you would have perished. The reason you are perishing now is because you are depending on only one breast, in the form of salary. You need multiple breasts to suck on. If salary fails, then you suck the breast of business!

#FreeLeahSharibu #RenosNuggets

https://www.thisdaylive.com/index.php/2020/09/06/the-financial-costs-of-buharis-cluelessness/

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