Archive for nigeriang

Peaceful elections in Ondo

Peaceful elections in Ondo

There was a large turn out of voters in Ondo State as the
rescheduled National Assembly elections started on a relatively peaceful note
in all of the local councils visited.

As early as 8am, the electorate trooped out to exercise their
civic responsibility. Some of the areas visited were, Supare, Owo, Ose,
Iwaro-Oka, Akungba and Ikare, all in the Northern Senatorial district of Ondo
State. Other areas were: Ondo town, Idanre, Owena and Igbara-Oke areas of the
Central senatorial district.

However, violence was recorded in some areas later as thugs
invaded the polling units shooting intermittently to scare the electorate.
Specifically, some political thugs engaged security operatives in a gun duel in
Ogbese area of Akure Local Government and two of them were reportedly killed in
the process.

“No death was recorded in Ogbese, some thugs engaged the police
in gun duel and they were later arrested by the police,” Mr Aremu said.

Also, there were alleged inducements of voters with cash in
Owo/Ose area as politicians of the three major political parties in the state
openly offered cash to voters in exchange for their votes.

Election did not take place in three out of the eighteen wards
in Arogbo in Ese-Odo Local government area of the state.

In Owo, the Action Congress of Nigeria Candidate (ACN) candidate
for Owo/Ose Federal Constituency, complained about the use of government
vehicles to intimidate voters.

The Deputy Governor of Ondo State, Alli Olanusi, who spoke with
reporters after voting at his home town, Supare, commended the strict
enforcement of the no-movement order.

Mr Olanusi who voted at Saint James Primary School around
12.35pm said the election was peaceful and devoid of violence.

Praises for INEC

The state governor, Olusegun Mimiko also praised the peaceful
conduct of the accreditation process during the National Assembly elections in
the state.

Mr Mimiko spoke with newsmen shortly after casting his vote at
1pm at Open Space, Opposite Mango Tree polling unit, Lodasa/Iparuku/Lijoka Ward
in Ondo Township as well as his wife, Olukemi.

He praised the diligence of the security agencies in enforcing
the restriction on movement during the election period and ensuring orderliness
at various polling centres during the election.

“Let me say it is too early to be absolutely categorical, but
the preliminary report that we have gotten from the field shows that the whole
exercise had been relatively peaceful particularly because of the enforcement
of the restriction of vehicular movement. The report we got up till the end of
accreditation exercise has been that it has been generally peaceful, but we
don’t know what is happening all over the place now. After this, I will be able
to get in touch to know what actually happened,” the governor said.

Click to Read More Latest News from Nigeria

Osoba rules out alliance with Daniel

Osoba rules out alliance with Daniel

Former Ogun State governor and leader of the Action Congress of
Nigeria (ACN), Olusegun Osoba yesterday said the governor, Gbenga Daniel was
not in reckoning of the party in the state.

Mr Osoba who spoke with journalists at his Abeokuta residence
against the backdrop of the sweeping victory of his party at the polls, the
state chapter of the party has nothing and will not have anything to do with Mr
Daniel as regards political alliance as being speculated.

He said: “We don’t need any alliance of any kind with anybody or
group. We don’t want to pollute our reputation with fetish people.

If anybody thinks that I will sit down with the out-going
governor, he is wasting his time. The speculation was that he went to Lagos
which I doubt, but Lagos is not Ogun State I will continue to respect the
office of the Governor where I have been twice , where we are going to be by
May 29, but his person should be separated from the office.”

He, however added that if the governor after the election makes
any move to him he is available. “Until we conclude all the elections, no
interest or talk with anybody. I have nothing against his party; he has the
right under the constitution to form any party of his.”

Lauds security
arrangement

The former governor lauded the security arrangement during the
poll and commended security agencies for standing against all odds by some
unscrupulous politicians who wanted to rig the elections. “I want to commend
the entire police force in Ogun State for the brilliant performance that they
put up. The police and other security agencies, particularly the Brigade
Commander whose men responded instantly to many of the distress calls that were
made to them particularly in flash points where they attempted to disrupt
elections and snatch ballot boxes.”

Click to Read More Latest News from Nigeria

Akunyili, Ngige election inconclusive

Akunyili, Ngige election inconclusive

The results of the
election in Anambra central senatorial district have been put on hold
by the Independent National Electoral Commission (INEC) pending a rerun
election in three wards in Njikoka local government.

The decision came
in the wake of strong protests by agents of the Action Congress of
Nigeria (ACN) against the cancellation of results in the three wards,
which they claimed would have catapulted their candidate, Chris Ngige
to victory.

NEXT gathered that
the All Progressives Grand Alliance (APGA) candidate, Dora Akunyili was
slightly ahead of her closest rival, Mr Ngige, from the results already
announced by the electoral body. But when the results from Njikoka were
received, the ACN agents claimed they received a text message from
their agents in the cancelled wards which they said showed that ACN led
in two of the areas, a development they pointed out would have ensured
victory for their party in the overall result.

Led by their state
agent, Kingsley Ezenwenyi, the ACN agents insisted the results should
not be announced and threatened to deal with the returning officer if
he went ahead to announce the results. They shouted and hurled
invective at both the Election and and Returning officers – and even
chased the Returning Officer into the first floor office of the
commission.

Finally both officials walked out, leaving some other officers of the commission to explain the situation to the protesters.

A spokesperson for
the commission, Mr Nwunelli, said the cancellation was because of the
non-availability of result sheets which were snatched. He said there
was a new INEC guideline which stipulated that when the total number of
registered voters is added up and found to be capable of upturning the
result, such would be declared inconclusive.

He said the number
of voters in the affected wards was found to be capable of upturning
the result and hence no return would be made. He said the result had
therefore been put on hold pending a rerun in the Nimo and Enugwu-ukwu.

A briefing by the
resident electoral commissioner with the press could not however hold
as soldiers flooded the entrance to the commission’s headquarters and
refused the journalists entry.

In Nimo, people
dressed in Army uniform had stormed wards one and two and commandeered
the INEC staff to part with the result sheets. The operation was
believed to have been orchestrated by a politician of the town
belonging to the Accord Party, whose party was hopelessly outclassed in
the wards by ACN and All Progressives Grand Alliance (APGA).

In the declared result, Andy Uba of the PDP won in Anambra south.

Click to Read More Latest News from Nigeria

Mob manhandle thugs dressed in military uniforms

Mob manhandle thugs dressed in military uniforms

The ruling Peoples Democratic Party (PDP) emerge victorious in
one Senatorial seat and two House of Representatives seats from the results of
the National Assembly elections in Ebonyi State so far released by the
Independent National Electoral Commission (INEC) in Abakaliki.

The closest rival, the All Nigeria Peoples Party (ANPP) won one
House of Representatives seats.

The state has three senatorial seats and six House of
Representatives seats, out of which elections took place in two senatorial and
five federal constituencies.

Elections into Ebonyi North Senatorial seat and
Ohaozara/Onicha/Ivo federal constituency were among those postponed by INEC.

The result announced by the INEC returning officer, Achilike
Beatrice indicate that the candidate of the PDP in Abakaili/Izzi federal
constituency, Sylvester Ogbaga scored a total of 45, 559 votes to defeat seven
other contestants. Emmanuel Uguru of the All Nigeria Peoples Party (ANPP)
scored a total of 16, 300 while All Progressives Grand Alliance (APGA)
candidate Uchenna Mbam secured 6, 149 votes.

In Afikpo North/South federal constituency, PDP candidate
Christopher Omo Isu defeated his opponents while the ANPP candidate for
Ishielu/Ezza North federal constituency, Peter Ede scored the highest number of
votes.

In Ebonyi South senatorial seat, PDP’s Sonni Ogbuoji scored 65,
735, ahead of Idu Igariwey of ANPP and Darlington Okere of ACN.

The election witnessed low turn out in most areas, even as
voting continued into the night in some places.

The results of Central senatorial zone, Ezza South/Ikwo federal
constituency and Ohaukwu/Ebonyi North federal constituency elections are still
being awaited as at the time of filling this report.

Electoral challenges

At Nkaliki in Abakaliki Local Government Area, 13 thugs, dressed
in army uniform and suspected to be engaged by the PDP, were over powered by an
angry mob who manhandled them before handing them over to the police.

At Ikwo Local Government Area, the home of both the state
governor, Martin Elechi and that of Martin Nchita Ogbuewu, the All Peoples
Grand Alliance (APGA) gubernatorial candidate, the exercise recorded low
turn-out with late arrival of electoral materials that led to late commencement
of accreditation and election.

Also at Ndufu Alike in governor Elechi’s country home,
supporters of PDP and APGA clashed resulting in some sustaining knife cuts.

At Agubata, Akuna Akuna, one man identified as Charles Ogboji
allegedly stopped INEC from accrediting voters against the wish of INEC staff.

Money was handed to voters on queue at Abina Ndufu in Amagu ward two and
Ndubia in IIkwo, though the turn-out was encouraging with the electorate
enthusiastic to have their own share of the money before casting their vote. At
Ekpaomaka and Ekpanwude electoral materials meant for four polling units were
snatched by gun-wielding thugs.

Click to Read More Latest News from Nigeria

Jega admits ballot paper woes

Jega admits ballot paper woes

Chairman of the Independent National Electoral Commission,
Attahiru Jega, at the weekend conceded that the electoral body bungled the
printing of ballot papers for the presidential election billed for next
Saturday, but said the process was later resolved.

Mr Jega said procuring the presidential election ballot papers
became problematic when two foreign companies rejected the job last minute
after previously assuring to deliver by the deadline.

“It is true that we had challenges with the contract for the
presidential ballot papers,” Mr Jega said. “But the situation has been resolved
and we now have all the materials we need for the presidential election.” He
said the first company withdrew after initially guaranteeing timely delivery; a
second company in South Africa, which took over the contract, also withdrew for
the same reason. Each had undertaken to print the ballot papers for the main
election and a rerun.

A third company finally delivered on the job, but only after a
mix-up forced the commission, as it raced to meet elections deadlines, to
cancel the printing of the papers for the main presidential election, and going
ahead to commission the rerun printing, he said.

“People got to know this and they made it look as if we
deliberately printed the rerun ballot paper and left the main, anticipating a
rerun,” he said. “Every electoral commission has to plan for the main election
and the rerun. Everything we have done, we can defend them.”

After a week of public rage over the April 2 postponed
elections, the rescheduled poll on Saturday was widely adjudged a fair
improvement, with millions of voters carried through orderly accreditation and
voting with relatively few troubled areas.

An elated Mr Jega said cases of missing names on voters’
registers, late arrival of materials, violence and reported cases of diverted
materials, will be tackled before the crucial presidential election on April
16. “Evidently, some politicians are still living in the past believing that
snatching ballot boxes and papers will allow them declare false results. But we
are confident that with the new accreditation and security, that will not be
the case,” he said.

Insulting insinuations

He said the missing names were caused by mix-ups in the
deployment of the Direct Data Capture machines and will be corrected before
Saturday, while the commission had received all materials needed for the election.

He took swipes at media reports that criticized his leadership in the wake
of the cancelled election last week. “Every day you read a report that says
there is a division in the commission and you look around and there is nothing
like that and you know they want to undermine us. It is really unfortunate,” he
said. “They want to portray us as partisan. Some say we have meetings with the
politicians. I feel very insulted. People who know us and know our reputation
know that cannot happen. Why would we take this job this far and be doing these
kind of things. But that is the nature of Nigerian politics; we have a job to
do and we will do that job to the satisfaction of Nigerians.”

Click to Read More Latest News from Nigeria

Jonathan condoles victims of suleja blast

Jonathan condoles victims of suleja blast

Speaking at the Abuja University Teaching Hospital, Gwagwalada,
while visiting victims of the Friday Suleja bomb blast, President Goodluck
Jonathan reiterated that the perpetrators will be made to face the law.

He also expressed happiness at how citizens turned out en-mass
to choose those to represent them at the federal level during the weekend,
despite all the setbacks. He noted that during subsequent elections all hitches
witnessed last week would have been cut down as all mistakes would have been
corrected.

Mr Jonathan, who arrived at the Gwagwalada Teaching Hospital at
2:16 pm, was received by the Chief Medical Director, Dr. Peter Alabi. He was
accompanied by the Minister of Defence, Adetokunbo Ademola and senior
Presidency aides. He offered words of sympathy to each of the 14 victims.
Speaking to journalists after signing the hospital guestbook, Mr Jonathan
expressed sadness that anyone would want to cut down the future and hope of
Nigeria by hurting its youth.

A ray of hope

“As regards the elections, we all are happy that despite some
setbacks that were witnessed, Nigerians generally are happy that at least they
can decide who will represent them or who will govern them. I believe that by
2015 when elections are conducted in this country some of the hiccups we
witnessed on Saturday would have abated. I also believe that any subsequent
election, one coming up this Saturday and upper Saturday will definitely
improve on this. So, for that I’m quite happy.

“But having inspected the hospital wards, and I have seen young
people who are serving their nation just caught up in these dastardly act by
some antisocial elements I feel sad. These are young people in the prime of
their life. The hope and future of Nigeria. For anybody targeting the youth is
targeting the country.

“They don’t mean well for the nation. Well, in all societies we
have such people but as a government we make sure that we would look out for
them and God willing we would get them, not all but some of them. And they
would face the law,” he said.

Mr Jonathan promised that the federal government would pick the
hospital bill of the victims and subsequently take care of those incapacitated.

“For the injured the government will take care of all their
medical bills and by the time they are okay, we would look at their conditions,
the ones that are having pressure to take care of themselves, with what I have
seen government will definitely assist,” the President said.

Meanwhile, the Movement for Democratic Sustainability (MDS) has
described the outcome of elections as the clearest indication that the Goodluck
Jonathan administration is committed to delivering on its promises of
conducting the freest and fairest election in Nigeria’s history.

The non-governmental organisation in a statement in Lagos after
the Independent National Electoral Commission (INEC) announced some of the
results of the National Assembly polls, said that upsets which the elections
threw up has not only vindicated the administration, but is also a radical
departure from the traditions of past administrations that were not receptive
to changes.

According to the publicity secretary of the MDS, Afam Iheanacho, “The
transparency of the election has shamed divisive elements and
pull-the-house-down politicians who had doubted the credibility of INEC and
tried to instigate Nigerians not to venture out for the election following the
shift in the polls penultimate week.”

Praising Nigerians for their maturity which was demonstrated by the huge
number of voters that turned up for the elections across the federation, the
MDS said that “no bombing or other terrorist acts would stop Nigerians from
exercising their franchise which this administration has vowed to guarantee by
ensuring a transparent process.”

Click to Read More Latest News from Nigeria

Minister defends Content Law

Minister defends Content Law

Diezani Alison-Madueke, Minister of Petroleum Resources, at the
weekend defended the Nigerian Content Policy of the Federal Government. She
said the policy was not designed to nationalise the assets of multinational oil
and gas companies operating in the country.

The minister, who spoke at the first anniversary of the
commencement of the implementation of the Nigerian Oil and Gas Industry Content
Development Act 2010 in Abuja, said the policy is aimed at promoting increased
participation of Nigerians in the operations of the industry, as is the
practice in industries around the world.

“Nigerian Content Act is not designed to nationalise foreign
assets or to completely indigenise the investment interests of foreigners, as
is erroneously perceived in some quarters. The important thing is that the
implementation of law would be guided by a framework that has been put in place
to help balance the interest of the investors and the country’s national
interest in the oil and gas industry,” Mrs. Alison-Madueke said.

According to her, since the approval of the Act early last year,
it has become clear that the industry needed to work towards building capacity
in critical areas to ensure that requirements of the law do not impede the
growth of the industry, pointing out that the collaboration with all
stakeholders must be sustained to erase the suspicion in some quarters that
there is resistance by multinationals in the implementation of the law.

Targets to be achieved

Some of the targets set by the government for the Nigerian
Content Development Monitoring Board (NCDMB) include retention of $10 billion
out of $20 billion average annual industry expenditure; creation of over 30,000
direct employment and training opportunities; and establishment of three to
four new pipe mills to service the demands of the industry and coating, valves,
fittings and components.

Other targets include the development of one or more dockyards
for maintaining marine vessels operating in Nigeria; transformation of ownership
profile of marine assets supporting industry activities and integration of
indigenes and businesses, as well as capturing 50 to 70 per cent of banking
services, insurance placements, and legal services in the country.

Group managing director, Nigerian National Petroleum Corporation
(NNPC), Austen Oniwon, disclosed that with the recent launching of the ‘gas
revolution’ by President Goodluck Jonathan, about $53 billion is expected to be
spent in the next three to four years on the establishment of strategic
industry infrastructure in the country, including Greenfield refineries, world
class petrochemical plants, fertilizer complexes, methanol plants, gas
processing facilities, and other gas related infrastructures in the country.

The challenge for stakeholders, he explained, hinges on ensuring
that significant percentage of the amount to be spent is in-country, by
supporting the capacity building initiative for local operators through the
Nigerian Content Development programme, to enable them compete with
multinationals, who set up facilities in Nigeria in order to make them take
full advantage of the existing opportunities.

Executive Secretary, NCDMB, Ernest Nwapa, said the take off of
the Act was threatened by the confusion about the necessity to either pass it
separately or be joined with the Petroleum Industry Bill, as it was
increasingly becoming apparent that government was no longer interested in
pursuing the policy of achieving 70 per cent local content in the industry.

Since the take off of the NCDB, Mr. Nwapa said a number of
achievements have been recorded, particularly building its executive and
operational capacity, underscoring the importance of continuous engagement with
stakeholders to reassure them that the Nigerian Content Act is not a punitive
law, but a confirmation of what is done in other jurisdictions they are
operating in.

Click to Read more Financial Stories

‘Nigeria is big business for us’

‘Nigeria is big business for us’

Standard Bank, South Africa’s largest bank by assets and
earnings, has said ongoing elections in Nigeria will not affect its willingness
to do business with the country. The bank’s director and head, Agricultural Banking,
will be moving to Nigeria to oversee its operations in the sector from next
month.

“Nigeria is currently our biggest investment at the Standard
Bank Group, outside of South Africa. We keep a close eye on elections as with
any African country, but the reality in Africa is business goes on, with or
without elections. I am actually relocating office in Nigeria in May due of
course to the size of the opportunity from an agricultural point of view,”
Jacques Taylor told NEXT at the weekend.

Speaking at a media forum on agricultural banking organised by
the bank in Johannesburg, South Africa, he said the bank expects agriculture to
contribute up to 40% of its asset growth in Africa in 2011.

Priority countries

South Africa’s Standard Bank Group acquired a majority stake in
Nigeria’s IBTC Chartered through a tender offer in August 2007 to become
Stanbic IBTC Bank Limited.

Nigeria is one of six priority countries that Standard Bank sees
as having the biggest opportunities in the agricultural sector in the short
term. The others are Ghana, Kenya, Namibia, Uganda, and Zambia.

“When we identify a country and try to access the market, the
three key things are natural resources, quality of infrastructure, and a stable
macroeconomic and political environment, because that will result in a stable
exchange rate,” Mr. Taylor added.

The group gave Nigeria a political risk rating of 2.2 on a scale
of 5, second only to Kenya, which has a risk rating of 2.1

“We are serious about that business, with a lot of support
coming from the Central Bank of Nigeria,” Mr. Taylor said.

Last year, Stanbic IBTC Chartered grew at the rate of two
branches per week in Nigeria.

“We have about 60 branches; we could be aiming for close to 300.
Nigeria is a big business for us,” Mr. Taylor concluded.

Click to Read more Financial Stories

Stock market dips further as volatility increases

Stock market dips further as volatility increases

The market capitalisation of equities at the Nigerian Stock
Exchange (NSE) depreciated further by 0.08 percent at the close of trading
session last week, as against a decline of 0.45 percent recorded in the
preceding week.

The NSE market capitalisation of the 194 First-Tier equities
closed last Friday at N7.902tr after opening the week at N7.908tr, reflecting
N6bn losses. Meanwhile, about N36bn was lost in the previous week.

The NSE All-Share Index in the week under review also shed 0.08
percent to close at 24,733.38 basis points as against a decline of 0.45 percent
recorded in the preceding week to close at 24,752.05.

Analysts at Proshare Nigeria Limited, an investment advisory
firm, said equity market turned unstable with “increased volatility due to high
speculative tendency experienced.” They said, “series of indecision positions
witnessed in most sectors, gave support to the unstable market breadth in the
week, indicating the intense battle between the bargain and sell positions
while the outlook further suggests overwhelming sell position as the week
eventually closed negative.” In the mean time, market watchers have advised
investors to maintain value-investing approach in the coming weeks.

Gainers and Losers

The number of gainers in the week closed at 41 stocks compared
with the 26 stocks recorded in the previous week.

Transcorp Plc topped the gainers chart for the week with 19.83
percent appreciations. One the losers’ side, a total of 33 stocks recorded
price decline in the week compared with the 50 stocks that declined in the
previous week. Guaranty Trust Bank topped the losers chart for the week with
24.57 percent depreciation.

The total volume traded in the week closed at 3.92 billion units
valued at N15.25bn compared with 3.98 billion units valued at N16.65bn recorded
in the previous week. The volume transaction in the week when compared with the
previous week data declined by 1.43 percent as against an increase of 242.68
percent recorded the preceding week. Weekly value also went down by 8.42
percent as against positive growth of 68.36 percent recorded in the preceding
week.

The conglomerates sector emerged the most traded sector during
the week in terms of volume with 2.56 billion units of shares valued at
N4.09bn. The volume traded in the sector accounted for 65.30 percent of the
entire market. Transcorp Plc led the market volume for the week to maintain
previous position as top traded stock. The Banking sector was second most
traded sector with 994.67 million units valued at N7.75bn.

Last week, some companies were marked down for dividends and bonuses. Zenith
Bank was marked down for 85k dividend; Guaranty Trust Bank was marked down for
75k dividend and a one for four bonus; while Stanbic IBTC was marked down for
39k dividend.

Click to Read more Financial Stories

FINANCIAL MATTERS:The rise of the sachets

FINANCIAL MATTERS:The rise of the sachets

The consequences of
the process that has made Nigerians poorer as the years have gone by
have been as diverse as they have been disruptive. I try today to buy
stuff off Amazon, and besides books, the standard reply is that Amazon
does not ship the designated items to the destination indicated –
Lagos, Nigeria. The response to attempted purchase of digital stuff is
clearer: copyright worries make it impossible to send the items.
Conversely, of five books bought online, depending on how recent the
titles are, three get through.

It’s of little use
protesting to the post office. Not all online purchases come with
“tracking numbers”. Tell that to the attendant at the post office and
the shrug of shoulders, and the question, “So, how can we look for it?”
settles the matter.

Yet it was not
always this way. I still recall that some of my father’s dress shirts
came off orders from glossy catalogues, and all the way from the UK. In
the 70s, these orders were delivered by the old post office system to
the house. This, incidentally, was not a Lagos thing, for the house was
in Ilorin. Moreover, all deliveries came through on time.

So we were not
always this dodgy. Although we have been poor for a while now, I was
recently impressed by this latter fact, when I tried to prepare my
kids’ favourite cereal with warm milk. Growing up, milk used to be of
the evaporated or fresh variety – either way, it poured out of some
container. And I felt nostalgic enough to try something different, only
to be told by my kids that the milk didn’t quite make the grade. “It
tasted funny”! Admittedly, it tasted somewhat different from the milk
powder they’d been brought up on. But more important was the
realisation that the use of evaporated/fresh milk made sense only if
electricity from the mains is regular, and steady. Otherwise, food
poisoning becomes a real and present danger. Reduced “quality of life”
issues and poverty, handmaidens both.

However, the more
interesting outcome of the gradual impoverishment of the Nigerian has
been the response of product/service providers in the economy. As
disposable incomes have fallen, shoppers have bought in increasingly
smaller quantities. In the fast moving consumer goods sector, the
changing face of shelf-spaces describes this trajectory: large cans of
food long since gave way to the medium- and then to the small-sized
tins. The now predominant sachets came only later. This value
transition has also happened in the faster growing sectors of the
economy. Today, with recharge card values as low as N50, not many
remember that the GSM-licensed telecom companies started business
almost a decade ago, with recharge card values as high as N7,500. The
card makers’ numbers tell a fascinating story. Given that the margin on
each card is the same, irrespective of the recharge value it carries,
small, frequent, discrete purchases return higher net margins than the
lumpier variety.

Unfortunately,
besides the contraction in domestic final demand, domestic businesses
face a plethora of structural impediments to profitable operations. One
of these – access to formal sector credit – so concerns the Central
Bank of Nigeria (CBN) that it has been forced to cross several
firewalls in its bid to give traction to the market for private sector
credit. It would seem, in spite of the CBN’s quasi-fiscal operations,
that the problem with formal credit growth in this economy is the
failure of the banking sector to mirror the trajectory of the economy.

Talk to bankers
about their concerns over the CBN’s efforts to get a grip on monetary
management by tightening policy, and the central worry is the adverse
effects of the CBN’s policy on the main transmission agents, the banks.
Apparently, whereas banks have come under intense cost pressures as
depositors have insisted on matching the yields on their deposits with
the return on the CBN’s standing deposit facility, the banks have not
been able to pass these new costs on to their borrowers. So the
expectation is of shrinking margins over the next nine months.

But isn’t this
because the banks are at the beginning of the curve, and are still
focussed on the big corporate customers? Would they not be better
served by bulk-breaking their loans and re-packaging them in sachets?

Click to Read more Financial Stories