• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Friday, July 25, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home News

CBN gives relief to oil marketers

The Matters Press by The Matters Press
July 22, 2019
Reading Time: 2 mins read
0
Nigeria’s food monthly imports dip

CBN governor Emefiele

CBN governor Emefiele

In compliance with a Central Bank of Nigeria (CBN) directive, commercial banks have frozen interests on the N800 billion loan granted to oil marketers.

RELATED POSTS

ADC’s claim on refinery sale, horrendous half truth

‎No political undertone in Tinubu’s befitting honour for Buhari, TDF ‎

‎Stop scapegoating Tinubu, stick to ethics of internal democracy, Group tells ADC ‎

The loans went bad following the delay in subsidy payment —a development said to have worsened the banks’ non-performing loans (NPLs).

Confirming the development, SunTrust Bank Limited Managing Director Ayo Babatunde said “there is 100 per cent suspension of income on the oil marketers’ loans by banks”.

CBN may have taken the action to ensure that banks did not report paper profits on NPLs.

Babatunde, who spoke at a seminar organised by the Money Market Workgroup of Financial Market Dealers Association (FMDA) in Lagos, highlighted the challenges banks are facing.

He said the CBN policy, mandating banks to lend 60 per cent of their deposits by September 30, may push some of them to increase lending to high risk-borrowers, with the potential of incurring heavy losses.

The guideline, he said, directed banks to improve lending to the real sector and maintain a minimum loan to deposit ratio (LDR) of 60 per cent (compared to the sector’s LDR of 58.5 per cent as at May and regulatory maximum of 80 per cent), subject to quarterly review.

To ensure lending to Small and Medium Enterprises (SMEs), retail, mortgage, and consumers, Babatunde said the CBN assigned a weight of 150 per cent to them in the computation of LDR.

“Failure to meet the minimum LDR of 60 per cent by the specified date will result in a levy of additional Cash Reserve Requirement (CRR) equal to 50 per cent of the lending shortfall of the target,” he said.

Babatunde said specific guidelines were required to clarify whether the LDR computation would be based on gross or net loan position.

Also to be clarified is whether earlier exposure to the preferred sectors can be aggregated for the LDR computation and likely forbearance to banks with high NPLs to the preferred sectors, such as SMEs, retail, mortgage and consumer lending.

The economy, he said, grew by two per cent year-on-year in the first quarter, adding that the pace of growth was slower than the 2.4 per cent growth recorded in the fourth quarter of 2018.
Source

Tags: CBNOil marketers
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Nigerian firms to handle $4b gas project
Economy/Technology

ADC’s claim on refinery sale, horrendous half truth

July 23, 2025
Tinubu inaugurates economic council
Energy

‎No political undertone in Tinubu’s befitting honour for Buhari, TDF ‎

July 23, 2025
Babangida Aliyu’s Exit from ADC, a testament to Coalition’s deceitful recruitment- Group
Economy/Technology

‎Stop scapegoating Tinubu, stick to ethics of internal democracy, Group tells ADC ‎

July 20, 2025
Befitting honour for former President Buhari commendable – TMSG
Economy/Technology

Group commends Tinubu’s exceptional honour to late President

July 20, 2025
Nigeria has not taken decision yet on fuel subsidy
Economy/Technology

Atiku still confused, repetitive over‎ Fuel Subsidy Withdrawal

July 19, 2025
Befitting honour for former President Buhari commendable – TMSG
Economy/Technology

Befitting honour for former President Buhari commendable – TMSG

July 17, 2025
Next Post
Police chief, others die in Shiites’ protest

Police chief, others die in Shiites' protest

Buhari, Osinbajo take oath of office

Buhari appoints 43 ministers

Recommended Stories

FIRS generates N4.2tn in 10 months

FIRS generates N309bn from education tax

November 10, 2022
“Naira-4-Dollar” getting results

Naira rises at Investors and Exporters’ window

July 15, 2022
Egypt’s economic strides excite AfDB

Export of processed agric products, Africa’s highway to wealth – Adesina

November 9, 2023

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • ADC’s claim on refinery sale, horrendous half truth
  • ‎No political undertone in Tinubu’s befitting honour for Buhari, TDF ‎
  • ‎Stop scapegoating Tinubu, stick to ethics of internal democracy, Group tells ADC ‎

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us