Nigerian banks resilient amid strain – CBN

The Central Bank of Nigeria (CBN), says Nigeria’s Deposit Money Banks (DMBs) are satisfactorily resilient amid each exterior and inner pressures.

Mr Yemi Cardoso, the Governor of the CBN, mentioned this on Tuesday in Abuja whereas presenting a communiqué issued on the finish of the 298th assembly of the apex financial institution’s Monetary Policy Committee (MPC).

According to Cardoso, members of the MPC famous with satisfaction the continued resilience and stability of the banking system despite vital exogenous and endogenous headwinds.

“Key financial soundness indicators such as the Capital Adequacy Ratio (CAR), Non-Performing Loan ratio (NPL), and Liquidity Ratio (LR), amongst others, remain strong,” he mentioned.

He, nevertheless, mentioned that the CBN would preserve its shut surveillance on the banking system to maintain compliance with regulatory thresholds and continued well being of the trade.

He mentioned that the MPC acknowledged the efforts of the CBN in deepening monetary inclusion in the direction of enhancing the transmission mechanism of financial coverage to reinforce coverage effectiveness.

Cardoso mentioned that the MPC members have been targeted on the optimum coverage selection to deal with the uptrend in value growth, stabilise the alternate charge, and anchor inflation expectations appropriately.

According to him, information from the National Bureau of Statistics (NBS) confirmed that headline inflation (year-on-year) rose to 33.88 per cent in October, from 32.70 per cent in September.

“On a month-on-month foundation, it additionally rose to 2.64 per cent in October, from 2.52 per cent within the earlier month,.

“Both the meals and core parts contributed to the continued rise in headline inflation.

” Food inflation rose additional to 39.16 per cent in October, from 37.77 per cent in September, whereas core inflation additionally rose to twenty-eight.37 per cent in October, from 27.43 per cent in September.

“The MPC, however, noted the moderation in the prices of farm produce and commended the efforts of the Federal Government in driving increased productivity in the agricultural sector,” he mentioned.

He mentioned that the restoration of output development was sustained, with actual Gross Domestic Product (GDP) (year-on-year) rising by 3.46 per cent within the third quarter of 2024.

“The development is pushed by each the oil and non-oil sectors, with a notable contribution from the companies sector.

“The non-oil sector grew by 3.37 per cent within the third quarter in contrast with 2.80 per cent within the second quarter.

“The oil sector grew by 5.17 per cent (year-on-year), compared with 10.15 per cent in the preceding quarter ” he mentioned.

He mentioned that the exterior reserves rose marginally to 40.88 billion {dollars} as at Nov. 21 from 40.06 billion {dollars} on the finish of October.

According to Cardoso, the exterior reserves can be found to finance 17 months of imports. (NAN)