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How trending quick loans lure workers, SMEs to debt traps


Checks done by this paper while interviewing a cross section of patrons of quick loans in Abuja, Lagos and other parts of the country, revealed that the trend became popular since 2018 and gained higher fame in 2020 with the economic crisis created by the COVID-19 pandemic.
Quick loan firms everywhere
There are a handful of them who offer enticing loans with low interest rates with little to no paperwork. While some offer from N20,000 to N5m, there are those whose thresholds reach tens of millions.
Their tenors are between one and 12 months (one year), with some up to a maximum of 24 months (two years). ....

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CBN Calls for Greater Policy Coordination to Support Economic Recovery


Obinna Chima
The Central Bank of Nigeria (CBN) has called for greater policy coordination and synchronisation of efforts to enhance economic growth in the country.
The Deputy Governor, Operations Directorate, CBN, Mr. Edward Adamu, made this call in his personal statement at the January 2020 Monetary Policy Committee Meeting, a copy of which was obtained at the weekend.
“To be clear, I view policy coordination across economic management institutions at the federal level as essential as response coordination across the tiers of government,” he said.
In his contribution, Adamu, stated that data presented highlighted some important downside risks, which included insecurity and rising inflation, especially food. Among other consequences, he pointed out that inflation beyond a certain threshold could undermine the output recovery gains. ....

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Banking industry report shows mixed development


Vanguard News
Banking industry report shows mixed development
On
• Capital adequacy declines, bad loans increases
• CBN chiefs say all is well with slight warnings
By Emeka Anaeto, Business Editor
 
The Central Bank of Nigeria, CBN, staff report has indicated that the banking industry ended 2020 in a mixed performance. But members of the apex bank’s Monetary Policy Committee, MPC, its highest policy body, have indicated that the industry remained resilient and sound despite some negative impacts of the COVID-19 pandemic during the year.
The report indicated that the banking industry liquidity ratio improved markedly between October and December 2020 from 35.6 per cent to 44.5 per cent. ....

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