Central Bank of Nigeria

Apart from Zenith Bank, we saw stanby about from stanby we saw i mean practically access i mean i won't call let me not call access back well yes they they just added some color some they just added a lot just a little color to the banking index but the major player in the banking index was festival i don't want to go into their charting and every other thing but again i'm just showing you guys what has happened and what the market has been doing And also again, how we've played it till this moment.

What do I expect in the banking, in the banking region or sector? Again, the CBN released, I mean, I've been able, they've allowed GTCO and Stanvik to release their results.

I mean, a lot of people were expecting sell-offs for GTCO.

I was, I mean, I took the other side of, I'm not, I don't expect GTCO to thus see sell-off because of a one-night interim dividend.

He took Peter of bitterness.

As if he went to bed in a very big battle of bitterness, with peter which was not settled overnight and unfortunately waking up this morning by being sworn in as the governor he started the battle one that is not the that is not how christianity mean to play it out that is not with all this some people might be prompted to say okay let us check the tenure of uh solido as governor of uh Central Bank of Nigeria during the time of Olusegwo Basogo.

Are we saying or are we going to say or can we conclude that his tenure was so fluid, so buoyant and that there were no errors? Not for some of those people in Nigeria that holding tight to historical facts.

Yoruba has a proverb saying that there is no how perfect a man is that he walks and his head will not be moving here and there.

And that brings us to one of the biggest developments of the week.

The Central Bank of Nigeria cut its benchmark interest rate by 350 basis points to 23%.

This was a major reduction.

Lower interest rates can eventually reduce financing costs for companies and households.

What rates are we talking about? The OMO rates.

Remember the last space we talked about OMO rates, right? And we talked about how the CBN has allowed even you folks, you ordinary folks in Nigeria to buy into OMO rates.

where has been the bulk of foreign portfolio investments flowing to nigeria is come from the united kingdom and i suspect that most of the funds that are coming from united kingdom are from nigerians living in the uk that are sending money back to nigeria to invest in higher yielding homo bonds in nigeria and the cbn then said we talked about it last week or so that anyone can then invest in the homo bond and i told you guys to go ask your bankers Now CBN is then saying we've reduced the interest rates that we're going to then pay out.

So it is CBN calculating that you Nigerian folks can bring money in to replace any foreign investment that will go out because rates have come down lower.

just a guess right so cbn will lend to the banks at 23 percent and of course even has still said pack some money in the account so this is what's going on in nigeria and the cbn has now reset interest rates much much lower it's a positive for the country that smes can get cheaper access to finance but you know in finance there's no straight answer when you do something it affects something else so i want to ask what is going to be affected positively and negatively if that's the word we want to use by the cb and bringing down interest rate that's what we want to see uh what would what would then occur in the cbn this policy then uh takes effect let's keep on going on our slides and again guys if you want to speak just request and i'll get you on The main thing that has not changed that I said we're going to talk about is this cash reserve ratio.

Now, when the CBN does its meetings, it talks about the rates, which we've talked about now.

26% was the former, so 26.5% was the former monetary policy rate.

They brought that down to 23%.