…Extends implementation of N819bn supplementary to Dec. 31***

Senate has passed a bill seeking to amend the Central Bank of Nigeria (CBN) Act to increase its advances to the Federal Government from five percent to a maximum of 15 percent.

The passage of the bill followed its presentation and consideration at plenary on Saturday.

The bill was sponsored by Sen. Gobir Abdullahi (APC- Sokoto).

Section 38 of the CBN Act stated that “Notwithstanding the provisions of section 34(d) of the act, the bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such rate as the bank may determine.

Senate- the Red Chamber

It further stated that the total amount of such advances outstanding shall not at any time exceed five percent of the previous year’s actual revenue of the Federal Government.

Abdullahi, however, in his lead debate said: “Mr. President, my respected colleagues, permit me to lead the debate on this bill, which seeks to amend the CBN Act to increase the total CBN advances to Federal Government from five percent to a maximum of fifteen percent.”

According to him, the bill has been read for the first time on May 24.

He said the essence of the bill was to enable the federal government to meet its immediate and future obligation in the approval of the ways and means by the National Assembly and advances to the federal government by the CBN.

“This amendment is very consequential and it needs the support of us all, it is to enable the federal government to embark on very important projects that will inflate and rejig the economy.

“I, therefore, urge you all to support the passage of this bill,” he said.

In another development, the Senate at an emergency session on Saturday extended the implementation period for the N819 billion 2022 Supplementary Appropriation Act from June 30 to Dec. 31.

This followed the consideration and expeditious passage of the 2022 Supplementary Appropriation Act (Amendment) Bill.

Senate Leader Ibrahim Gobir had earlier during plenary, led the debate on the general principles of the bill.

Gobir said that the bill was read for the first time on May 24.

He said that the bill sought to amend the 2022 Supplementary Appropriation Act to extend the implementation from June 30 to Dec. 31.

“You would recall that the National Assembly extended the implementation of the 2022 Supplementary Appropriation Act from Dec. 31, 2022, to March 31, 2023.

“This was to allow full implementation of the budget, especially in light of the 2002 supplementary budget approved in Dec. 2022

“The extension had allowed MDAs to utilise a large proportion of funds released to them.

“However, a significant amount of funds remain with MDAs and will require a further extension to be fully expended.

“Given the critical importance of some key projects nearing completion, requesting a further extension of the expiration clause in the 2022 Supplementary Appropriation Bill is expedient.

“This is to avoid compounding the problem of abandoned projects given that some of the projects were not provided for in the 2023 Budget.”

In his remarks, the Senate President, Ahmad Lawan, said that the supplementary budget approved for the executive by both chambers in December has not been implemented due to lack of releases.

”The supplementary budget meant for fixing of critical infrastructure destroyed by flood across the country last year has not been implemented due to non-releases of appropriated funds.

“As explained and requested by the executive, the duration of implementation will now be extended from June 30 earlier fixed, to Dec. 31, 2023”.

Prof. Kingsley Moghalu, the President of the Institute for Governance and Economic Transformation (IGET) will deliver the 30th Anniversary Founders Day Lecture of the African Export-Import Bank (Afreximbank).

The event is billed to hold at the bank’s Headquarters in Cairo, Egypt, on May 8.

Moghalu was also a former Deputy Governor of the Central Bank of Nigeria (CBN),

The IGET quoted Moghalu in a statement on Tuesday, as saying, “I am honored to have been requested to deliver the Afreximbank’s 30th Anniversary Founders Day Lecture.

“As Africa’s trade finance bank and one of the continent’s most strategically important financial institutions, Afreximbank has a central role to play in developing Africa into one of the world’s prosperity zones.”

IGET said that Moghalu’s Afreximbank lecture would focus on “Afreximbank in the next 30 years”.

It added that the lecture would also provide new perspectives on what the bank’s priorities could be over the next 30 years in the context of continental strategies such as the African Continental Free Trade Agreement (AfCFTA).

Similarly, IGET quoted the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, as saying that Afreximbank Founders’ Day Celebration is commemorated annually to celebrate the visionary leaders who conceived the idea and contributed to the establishment of the Bank.

“It is also a platform to take stock of the contributions of the Bank towards Africa’s trade development aspirations and reflect on its future.

“The Founders’ Day, celebrated on May 8 each year, brings together over 800 diverse participants comprising all staff of Afreximbank and their spouses, African and selected non-African Ambassadors and diplomats, representatives of international organisations resident in Cairo, as well as the Bank’s clients and officials of the Egyptian Government,” Oramah quoted as saying.

IGET said that Afreximbank was established in 1993 by African Governments, African private and institutional investors as well as non-African financial institutions to provide financial solutions and advisory services for the expansion and diversification of intra-and extra-African trade.

It added that the bank has total assets of $12 billion. It was recently upgraded to “BBB” from “BBB-” by the rating agency Fitch.

The IGET is an independent, non-partisan think tank established to help African countries create inclusive growth and prosperity through effective governance, knowledge-based public policy, and economic strategy.

IGET delivers value through accessible policy briefs, executive education for public and private sector leaders, and consultancies.

Guaranty Trust Holding Company Plc (GTCO) on Friday announced a profit before tax of N214.2 billion in its Audited Consolidated and Separate Financial Statements for the year ended, Dec. 31, 2022.

The decrease in profit before tax, according to results made available to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE), represented a 3.3 percent dip from N221.5 billion posted in the corresponding year ended, December 2021.

It, however, attributed the decrease in PBT to the N35.6 billion impairment recognised on Ghanaian sovereign securities.

The Group’s loan book (net) increased by 4.6 percent from N1.80 trillion as of December 2021 to N1.89 trillion in December 2022, while deposit liabilities grew by 11.6 percent from N4.13 trillion to N4.61 trillion during the same period.

The Group’s balance sheet remains well-structured and resilient with total assets and shareholders’ funds closing at N6.45 trillion and N931.1 billion, respectively.

Capital Adequacy Ratio (CAR) remained strong, closing at 24.1 percent.

Similarly, asset quality was sustained as IFRS 9 Stage 3 Loans ratio; non-profit loans (NPLs) improved to 5.2 percent in December 2022 from six percent

However, Cost of Risk (COR) inched up marginally to 0.6 percent in financial year, 2022 from 0.5 percent in December 2021.

Commenting on the results, the Group Chief Executive Officer (CEO) of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said; “Our ability to successfully navigate the peculiar challenges in the different markets where we operate.

“This underscores our strong business fundamentals and unwavering commitment to sound business strategies.

“Despite the varying challenges and headwinds that weighed on growth in 2022, we were determined to deliver a decent performance and scale effectively to strengthen our competitive edge and drive long-term growth.”

He further stated that 2022 was quite significant for the Group being the first year after its corporate restructuring into a financial holding company in August 2021.

“Today, across our Banking, Payment, Funds Management, and Pension businesses, we have successfully built a robust ecosystem with immense potential to deepen our addressable market and create more value for all our stakeholders.

“We will continue to prioritise innovation, service excellence, and execute seamlessly towards achieving our vision of leading financial services in Africa, ” the CEO said.

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 23.6 percent, Pre-Tax Return on Assets (ROAA) of 3.6 percent, Full Impact Capital Adequacy Ratio (CAR) of 24.1 percent and Cost to Income ratio of 48 percent.

GTCO is a financial services group with banking operations in Nigeria, West Africa, East Africa, United Kingdom alongside new businesses in Payment, Funds Management, and Pension Fund Administration.