Wednesday 15 June 2016

Bodies of 42 fishermen butchered by Boko Haram pulled from Lake Chad

"Cameroonian sailors and villagers... saw several bodies floating on the water and immediately alerted security forces," Cololenl Nomo Jean Claude told the African news website the Daily Sabah. "We recovered 42 bodies from the water between Saturday and Sunday. After identification, we found they were of Cameroonian, Nigerian and Chadian nationality. The bodies were immediately handed over to the families for burial."
Boko Haram has fought a seven-year battle to form an Islamist caliphate in the region in which around 20,000 people have been killed and 2.7 million people displaced. Around 50,000 have been displaced in south eastern Niger in the last few days due to an onslaught by the group, according to Fox News.
This has prompted a doubling of food aid to southern Niger, the United Nations' World Food Program (WFP) announced on Tuesday (14 June). "Many people have walked from 10 km to 40 kms (6 to 25 miles)," said WFP Niger deputy country director Belkacem Machane in a statement published by Reuters.
"They are arriving in a state of shock, and urgently need food, shelter, water – assistance with their most basic needs. They have now reached the end of their rope."
Niger, Chad, Benin and Cameroon have all joined an international task-force to fight the insurgents, but often ordinary civilians are the ones who suffer most. BokoHaram has bombed many mosques, transport hubs and even refugee centres, as well as snatching over 200 schoolgirls from Chibok and selling them into slavery.
In March (2016) Cameroon announced the death penalty for 89 members of Boko Haram, a decision dismissed as counter-productive by anti-terrorism experts.

UNN, Enugu Campus shut down over students’ violent protest


University of Nigeria, Enugu Campus, UNEC, has been shut down indefinitely following students’ unrest in the institution. UNN It was gathered that students of the university staged a protest last Monday over epileptic power supply in the campus and in the process, destroyed cars, water tanks and street lights before police fired teargas to stop them. Further checks revealed that the crisis that culminated in the closure of the campus began over a week ago when the Students’ Union Government locked up the classes, insisting that classes should not continue until the authorities fixed the electricity generator in the campus. But calm seemed to return in the campus after meetings with the Deputy Vice-Chancellor, Professor Smart Uchegbu. An agreement that classes should be opened was reached which they did on Monday. However, the generator was unstable when it was switched on Monday, which led to the protests. In a memorandum issued on June 14, 2016 and signed by the Deputy Vice Chancellor, Enugu Campus, Professor Smart Uchegbu, the university authority stated, “This is to bring to the notice of the university community that in the light of the violent protest and monumental destruction of properties on 13th June, 2016, the Vice Chancellor has approved the implementation of immediate suspension of the Enugu campus students union government and closure of the University of Nigeria, Enugu Campus indefinitely”
 

Very hot drinks are 'probably carcinogenic


(CNN)Anyone who likes to curl up with a steaming hot drink should consider letting some of that warmth subside; drinking it could increase their risk of developing cancer.
In a review published today by the International Agency for Research on Cancer, the cancer agency of the World Health Organization, drinking very hot beverages was classified as "probably carcinogenic to humans."
More specifically, the review by a panel of global experts stated that drinking beverages at temperatures above 65 degrees Celsius -- 149 degrees Fahrenheit -- could cause people to develop cancer of their esophagus, the eighth most common form of cancer worldwide. Drinking tea, coffee or other hot beverages at this temperature can cause significant scald burns in the esophagus when they're consumed and has previously been linked to an increased cancer risk in this part of the body.
Warm beverages are not typically consumed this hot in Europe and North America but are commonly served at, or above, this temperature in regions such as South America, the Middle East and East Africa -- particularly when drinking teas. It's hotter than water coming out of sink faucets, which is typically no higher than about 140 degrees Fahrenheit (60 degrees Celsius), but not as hot as boiling water. Water boils at 100 degrees Celsius, or 212 degrees Fahrenheit.
The 65-degree Celsius temperature noted by the cancer research agency is enough to burn your tongue, and and according to the American Burn Association, skin contact with a liquid this hot can result in almost instantaneous burns if prolonged.

Getting hot

The findings come after a group of 23 international scientists analyzed all available data on the carcinogenicity of coffee, maté -- a leaf infusion consumed commonly in South America and other regions -- and a range of other hot beverages, including tea. They decided that drinks consumed at very hot temperatures were linked to cancer of the esophagus in humans.
The new classification puts consuming very hot drinks in the same risk group as exposure to substances such as lead, gasoline and exhaust fumes, which are also classified as "possibly carcinogenic" by the agency. Use of talcum powder on the perineal or anal regions of the body is also within this category.
Evidence for the findings was limited, but studies in China, Iran, Turkey and South America found positive associations between the risk of this form of cancer and temperatures at which drinks were consumed. Forms of tea, including the leaf infusion maté, are typically drunk at extremely high temperatures, above 158 degrees Fahrenheit (70 degrees Celsius) in these regions, according to the agency.
"These results suggest that drinking very hot beverages is one probable cause of esophageal cancer and that it is the temperature, rather than the drinks themselves, that appears to be responsible," said Dr. Christopher Wild, director of the International Agency for Research on Cancer.
Consumers in industrialized countries can stay calm, as they typically drink their beverages with less heat. "This is about 10 degrees [Celsius] higher than people in North America [and Europe] like their coffee," said Dana Loomis, deputy head of the monographs section at the cancer research agency that led the review.
Individually, coffee and maté did not have conclusive evidence for any cancer-causing effects when served at cool or warm temperatures, meaning the drinks themselves were not classified as carcinogenic.
Esophageal cancer was responsible for approximately 400,000 recorded deaths worldwide in 2012, about 5% of all cancer deaths.
Though smoking and drinking alcohol are major causes of esophageal cancer, particularly in high-income countries, the majority of cases globally for this form of cancer occur in parts of Asia, South America and East Africa.
"[Here], drinking very hot beverages is common, and the reasons for this high incidence of this cancer are not well-understood," Wild said.
The Tea Advisory Panel in the United Kingdom has responded to the classification by highlighting that tea is drunk at lower temperatures in the UK and that most people add milk.
"Tea drinkers in the UK can continue to enjoy tea in the traditional way with a drop of milk, which ensures that the temperature of tea sits within safe limits," said the panel's Tim Bond. "A study by UK burns doctors found that a cup of tea with 10 milliliters of milk cooled to less than 65 degrees Celsius within five minutes."

Re-classifying coffee

The International Agency for Research on Cancer classified coffee as "possibly carcinogenic to humans" in 1991, based on limited evidence, but the increased number of studies and evidence available since then led to its re-evaluation during the review.
The group analyzed more than 1,000 studies and decided there was inadequate evidence for any cancer-causing effects linked to drinking coffee itself, away from the temperature at which it is served.
The report stated coffee was "not classifiable as to its carcinogenicity to humans."
"Many epidemiological studies showed that coffee drinking had no carcinogenic effects for cancers of the pancreas, female breast and prostate, and reduced risks were seen for cancers of the liver and uterine endometrium," the report said.
Evidence for any other cancers linked to drinking coffee was also inconclusive.
The National Coffee Association in the United States welcomed the new classification. "This is great news for coffee drinkers and confirms evidence from an avalanche of studies by highly respected and independent scientists," said National Coffee Association President Bill Murray. "Today, we can brew or buy a cup with even more confidence thanks to science."
The heat emanating from a coffee cup, or any hot drink, remains a risk, and previous studies have suggested an optimal drinking temperature of 136 degrees Fahrenheit (57.8 degrees Celsius) or below.

Consuming cancer

The findings come after a string of similar reports that link food and drink to cancer.
A 2015 study found that only 10% to 30% of cancers occur naturally in people's bodies, suggesting that most cancers are, in fact, a result of environmental factors.
In October, the WHO announced results from a report that linked people eating processed meat, such as sausages and ham, to cancer. Based on evidence from hundreds of studies, processed meat was classified as carcinogenic to humans.
Unprocessed red meat was classified as probably carcinogenic.
Recent studies have linked Western diets with increased risk of colon and prostate cancer. Men eating mostly a Western diet were found to have 2.5 times the risk of dying from prostate cancer. A Western diet is typically considered to be low in fiber and high in refined sugars, saturated fats and animal protein.
This week, the Environmental Working Group released findings that more than 400 known cancer-causing chemicals have been found in the bodies of Americans during research studies.
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After a review of more than 1,000 biomonitoring studies, the group found that up to 420 chemicals known or likely to cause cancer have been detected in blood, urine, hair and other human samples. Nine of these was identified to be above safety limits assigned by the U.S. Environmental Protection Agency and posing non-trivial cancer risks in most Americans, according to the review.
"The presence of a toxic chemical in our bodies does not necessarily mean it will cause harm, but this report details the astounding number of carcinogens we are exposed to in almost every part of life that are building up in our systems," said Curt DellaValle, a senior scientist at the Environmental Working Group and author of the report. "At any given time, some people may harbor dozens or hundreds of cancer-causing chemicals. This troubling truth underscores the need for greater awareness of our everyday exposure to chemicals and how to avoid them."

Breaking: Finally, CBN to floats the Naira


Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele 

By Emma Ujah, Abuja Bureau Chief
The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira.
CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors.
“It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.  
“It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/

CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/

Mr Peter Okoye Our Brand Ambassador."KIA "

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Breaking: Finally, CBN to floats the Naira

Breaking: Finally, CBN floats the Naira

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira. CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. Governor, Central Bank of Nigeria (CBN), Mr Godwin EmefieleGovernor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele “It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira. CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. Governor, Central Bank of Nigeria (CBN), Mr Godwin EmefieleGovernor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele “It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira. CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. Governor, Central Bank of Nigeria (CBN), Mr Godwin EmefieleGovernor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele “It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira. CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. Governor, Central Bank of Nigeria (CBN), Mr Godwin EmefieleGovernor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele “It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/
By Emma Ujah, Abuja Bureau Chief The Central Bank of Nigeria (CBN) Wednesday announced what it termed the “automatic adjustment mechanism of the exchange rate” in a flexible foreign exchange regime aimed at reducing the pressure on the Naira. CBN has been under immense pressure to devalue the Naira for a while, which has been resisted by both the monetary and fiscal authorities, claiming that past devaluations did not benefit the economy- which is import dependent. Mr. Emefiele said, “The Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. Governor, Central Bank of Nigeria (CBN), Mr Godwin EmefieleGovernor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele “It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. “The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market. Highlights of the flexible regime Under the new regime, Governor Enefiele said that the market would operate as a single market structure through the inter-bank/autonomous window Below are the highlights of the new regime: *The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book. *The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises. *To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis. *These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing. *There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market. *The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market. *To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers In addition: *Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads; *The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market; *The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates; *Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and *Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market. Timelines *Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market *Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and *The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday, June 27, 2016. Depleted foreign reserves The CBN, the governor said, had to take the measures sine the nation “witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. “In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.” He blamed the poor foreign exchange receipts on the over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves; Global growth slowdown and geopolitical tensions along critical trading routes in the world; and Normalization of Monetary Policy by the United States’ Federal Reserve. The CBN boss explained, “the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.” Mr. Emefiele, assured, however, that “Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months.” He said that his team at the CBN would ensure transparency in the new regime and that there would be no place for speculators. His words, “Let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. “The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. *Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.” The governor explained that the Primary Dealers would be about eight or ten and banks with the capacity to go to the market with as much as $10 million.

Read more at: http://www.vanguardngr.com/2016/06/breaking-finally-cbn-floats-the-naira/

STEPHEN KESHI'S CHILDREN ARRIVED NIGERIA.



Stephen Jnr and Jennifer Keshi have arrived Nigeria for preparation
of their father, Stephen Keshi's burial. The former Super Eagles
Coach died in Edo state last week Wednesday June 8th. Stephen
Keshi Jnr says they are working with the Federal government, Delta
and Edo state government and other well meaning Nigerians to give
him a befitting burial. No date has been fixed for his burial.

23 CONDITION TO ACCESS 90 BILLION " FG"


Following the economic turmoil Nigeria is currently going
through, the Federal Government (FG) has once again, made
moves to rescue state governments who have been hit by the
crisis.
Last year, the state governments received N713.7billion bailout
from the FG to pay workers backlog of salaries, but they are still
grappling with the same challenges due to Nigeria’s dwindling
oil revenues.
The FG has now decided to give out another N90 billion loan,
which the government believes will help the states in their bid to
be less dependent on the monthly handout from the federation
account.
President Buhari and his team are using every means possible
to ensure that the Nigerian economy does not collapse
The loan will be given over one year and will be extended to the states after they have met 22 conditions.
Read the conditions below:
1. Publish audited annual financial statements within nine
months of financial year end.
2. Comply with the International Public Sector Accounting
Standards (IPSAS)
3. Publish state budget online annually
4. Publish budget implementation performance report online
quarterly
5. Develop standard IPSAS compliant software to be offered to
states for use by state and local governments
6. Set realistic and achievable targets to improve independently
generated revenue (from all revenue generating activities of the
state in addition to tax collections) and ratio of capital to
recurrent expenditure
7. Implement targets
8. Implement a centralised Treasury Single Account (TSA) in
each state
9. Have quarterly financial reconciliation meetings with federal
government to cover VAT, PAYE remittances, refunds on
government projects, Paris Club and other accounts
10. Share the database of companies within each state with the
Federal Inland Revenue service (FIRS). The objective is to
improve VAT and PAYE collection
11. Introduce a system to allow for the immediate issue of VAT/
WHT certificates on payment of invoices. Review all revenue
related laws and update obsolete rates/tariffs
12. Set limits on personnel expenditure as a share of total
budgeted expenditure
13. Biometric capture of all states’ civil servants will be carried
out to eliminate payroll fraud
14. Establish efficiency unit
15. Federal government online price guide to be made available
for use by states
16. Introduce a system of continuous audit (internal audit)
17. Create a fixed asset and liability register
18. Consider privatisation or concession of suitable State-owned
enterprises to improve efficiency and management
19. Establish a capital development fund to ring- fence capital
receipts and adopt accounting policies to ensure that capital
receipts are strictly applied to capital projects
20. Domesticate Fiscal Responsibility Act (FRA)
21. Attainment and maintenance of a credit rating by each state
of the federation
22. Federal government to encourage states to access funds
from the capital markets for bankable projects through issuance
of fast- track Municipal bond guidelines to support smaller
issuances and shorter tenures
23. Comply with the FRA and reporting obligations, including: No
commercial bank loans to be undertaken by States; Routine
submission of updated debt profile report to the DMO.
Speaking on the loan, minister of finance, Mrs Kemi Adeosun
said: “The amount of the loan is N50billion for three months to be
shared across the 36 states, including FCT and then N40billion for
nine months.
“The idea is to tie states over for a year so that they rebalance,
which is an average of about N1.3billion per state for the first three
months and N1.1billion for the next nine months.
“It is a loan and it is fully repayable although it has a secured tie
against future dividends, revenues and any amount that government
might owe the states”.
Meanwhile, the federal government has barred banks in the
country from giving loans to state governments. The decision
was taken in line with the Fiscal Sustainability Plan (FSP) of the
government.