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Nigeria: CBN's N91 Billion Investments Yielded No Dividend - Soludo
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Daily Trust (Abuja)
4 July 2008
Posted to the web 4 July 2008
Tashikalmah Hallah
The Governor of Central Bank of Nigeria (CBN), Professor Charles Chukwuma Soludo, yesterday expressed regret over N91.4 billion investments in nine parastatals which did not declare any dividend, saying that they were rather demanding for more funds.
Professor Soludo, while testifying before the House of Representatives Committee on Finance investigating the non remittance of revenue into the federation account by revenue collecting agencies, said that each of the nine subsidiaries were "knocking on our doors asking for money to recapitalized".
According to Soludo, the CBN invested N13.249 billion in the Nigeria Security Printing and Minting Company NSPMC, N7.894 billion in the Bank of Industry (BOI), and N6. 373 billion in the Nigeria Export Import Bank (NEXIM).
The CBN has also invested in the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB) with N4.026 billion, Nigeria InterBank Settlement System (NIBSS), N52.583 billion and Nigeria Deposit Insurance Corporation (NDIC) N1.380 billion.
The CBN has N508 million stake in Abuja Stock & Commodity Exchange (AS&CE), N60 million in Federal Mortgage Bank of Nigeria (FMBN) and N57.957 million in the African Finance Corporation (AFC).
The CBN Governor told the Committee that apart from the AFC which is a new corporation, all the other subsidiaries still depend on the CBN for funding adding that the CBN does not have substantial say in each of the companies apart from the NSPMC.
According to him, the CBN is adequately represented on the board of the Mint but the rest are filled by politicians.
He also said that the CBN can remit revenue to the Federation Account but could not be a revenue centre, that it was wrong for the government to set a revenue target for the CBN.
"I use to make a joke out this that if you set a revenue target for the CBN you have to define what job you want us to do, if you want us to maximise that revenue that is easy to meet that target. But that would neglect the very objective of the CBN.
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"Any country that regarded Central Bank as revenue centre, if you want to maximise revenue out of Central Bank, it compromises its capacity do its primary job."
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