Huge NPLs, Fragile Economic Growth to Top Agenda at MPC Meeting Tomorrow Kunle Aderinokun When the Monetary Policy Committee of the Central Bank of Nigeria (CBN) meets tomorrow and Tuesday, issues bordering on huge non-performing loans in banks and weak economic growth would top the agenda
for discussion, analysts have suggested. The forthcoming MPC meeting, which is the 258th edition is coming after the economy exited recession it entered in the second quarter of 2016, recording 0.55 per cent GDP growth rate, which is considered a weak one. The
meeting would also hold days after a report revealed that the top five banks were responsible for 47 per cent of the impaired credits in the industry. Just about the same time, two MPC members, namely, Dr. Doyin Salami and Hassan Balami, expressed concerns over the high level of non-performing
loans in four banks. Executive Director, BGL Capital, Femi Ademola, said the concerns raised by the MPC members on the NPLs were important ones that needed to be dealt with. According to him, “The importance of the banks to the financial system and the entire
economy as a whole and past experience suggest that we do all necessary to prevent any systemic problems.” Ademola, who pointed out that, “We must also consider that this situation is happening at the same time when the economy was in recession, noted that, “The
fall in oil price, the depreciation in the value of the Naira and the high inflation affected the capacity of borrowers to meet repayment obligations.” “However in the last few months, we have been Continued on page 82
With Force Majeure on Nembe Oil Line, Nigeria Risks Revenue, Production Cuts … Page 82 Sunday 24 September, 2017 Vol 22. No 8193
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2019: The State of Play (I) With Buhari's healthier than expected return from medical vacation, many eyeing the Presidency in 2019, are in disarray and back to the drawing board, write Tokunbo Adedoja and Olawale Olaleye The state of play in the period that President Muhammadu Buhari was away on medical grounds has changed. At that time, there was a near consensus amongst a majority of the active political actors that the president might not seek
re-election because of the state of his health. The political space was therefore open and free for all with several meetings and alliances across the land. The turf began to get really saturated with different characters and the accompanying projections
on the path to 2019. But after spending 103 days in London, the United Kingdom, on medical grounds, the second since he became president, Buhari returned to the country healthier, and has demonstrated his fitness going
by his itinerary so far. Since his celebrated return, he has consciously unsettled a lot of political plans, conspiracy and dreams at the presidential level. Although he has not specifically disclosed his take on 2019, indications are daily becoming
crystal clear that he might run. This assumption is supported by the subtle campaigns already being spearheaded by some of his followers. But should he decide to seek re-election, there are challenges he would have to contend with
on his path to a second term in office, which include the aspirations and grievances of certain key political figures, and the frequently changing political permutations. Continued on page 10
Tinubu: Nigeria Won’t Make Progress without Restructuring Says most items in Exclusive List should be in Residual List Faults FG’s approach to Paris Club refund Gboyega Akinsanmi Lending weight to growing calls for restructuring of the Nigerian federation, national leader of the ruling All Progressives Congress, Asiwaju Bola Tinubu, said yesterday in Lagos that the country’s development would remain an unrealistic hope under the current quasi-federal structure. Tinubu stated this last night in his keynote address at the 2017 Founders’ Day Dinner of King’s College Old Boys’ Association. He said the present system was overcentralising power at the expense of the federating units. The former governor of Lagos State called for a return to the ideals of the 1963 Constitution, which he said
guaranteed fiscal federalism, regional autonomy, regional constitutions, and progressive competition among the federating units. Tinubu said, “Many of the 68 items on the Exclusive Legislative List should be transferred to the Residual Legislative List,” explaining, “This would be in harmony with the 1963 Constitution, again an instance of reaching back to revive something old yet more likely to give us a better Nigeria. That prior constitution granted vast powers to the regions, enabling them to carry out their immense responsibilities as they saw fit.” He faulted the approach of the federal government to the Paris Club refunds, saying it “has no right to withhold Continued on page 82
MARKETING BAYELSA TO THE WORLD… Bayelsa State Governor Seriake Dickson (right) exchanging pleasantries with Chairperson of the Congressional Black Caucus Foundation, Rep. Sheila Jackson Lee (representing Texas's 18th District), in Washington DC, USA ...weekend