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CBN Global Standing Guidelines will encourage lending for developmental purposes — expert



Prof. Mike Obadan, an Economist says implementation of the operational guidelines on Global Standing Instruction (GSI) issued by the CBN will encourage commercial banks to lend money for developmental purposes.

Obadan, the Chairman of GoldMark Education Academy and a Non-Executive Director of the Central Bank of Nigeria (CBN) said this in an interview with the FELLOWPRESS in Benin on Monday.

He said implementation of the operational guidelines on GSI would reduce non-performing loans and boost confidence of the banking sector to give out loans to businesses that would grow the economy.

Obadan said the deposit money banks were currently accommodating a huge portfolio of non-performing loans with ratio higher than the International Prudential Guidelines of five per cent.

“The Non-performing loans were posing a threat to the existence of the banking system and commercial banks were finding it difficult to recover collateral/securities from debtors.

“The implication of this was that banks were becoming more reluctant to lend money to vital businesses, critical sectors in aid of growth and development of the economy.

“The situation was that banks will have funds and they will not be willing to lend money to companies and businesses because of loan defaulters.

“But they will be willing to invest that money in government short term securities like Treasury Bills and they are getting a high interest rate.

“The CBN saw this as an anomaly because banks exist primarily to lend money to the real sector of the economy to perform financial intermediary roles of getting money from surplus units in the economy and lending such money for developmental purposes,” he said.

He added that the implementation of the guidelines would also put borrowers on their toes to ensure that they invest borrowed money for the right purposes and yield incomes to pay back the loans.

FELLOWPRESS reports that the CBN had on July 13 issued a circular to all banks and other financial institutions tagged ‘Operational Guidelines on global standing instruction- individuals.’

The implementation of the Guidelines which is expected to take off from Aug. 1, will give banks the power to debit loan and accrued interest due from bank accounts of loan defaulters across the Nigerian banking system.

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UK orders probe into Islamophobia claims by conservative lawmaker



UK Prime Minister Boris Johnson has ordered an investigation into conservative lawmaker, Nusrat Ghani claims that she was sacked as a junior minister in 2020 over concerns that she was a Muslim.

A Downing Street spokesperson announced on Monday in a brief statement to reporters that “the Prime Minister has asked the Cabinet Office to conduct an inquiry into the allegations made by Nusrat Ghani MP.’’

In an interview published by the Sunday Times, Ghani said that she was dismissed as a junior transport minister in February 2020.

She said following her dismissal a senior Conservative lawmaker told her that her Muslim faith made colleagues “uncomfortable” and that her career would be “destroyed” if she tried to complain.

In a subsequent statement on Sunday, she said that she had directly informed Johnson about the matter but that the prime minister wrote to her that he could not get involved and suggested that she use the internal Conservative party’s complaint process.

Reacting to the launch of a probe, Ghani wrote on Twitter that she welcomed the decision and asked that all that was said in Downing Street, and by her senior Conservative colleague be included in the terms of reference of the inquiry.

“As I said to the Prime Minister last night, all I want is for this to be taken seriously and for him to investigate,’’ she added.

The Islamophobia claims came as Johnson was facing calls to resign over a string of parties that were allegedly held in Downing Street during the COVID-19 lockdown.

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Photos of Arnold Schwarzenegger involved in car crash



Hollywood actor, Arnold Schwarzenegger has been involved in a car accident, his spokesman has confirmed.

The four-vehicle crash, which occurred on Friday afternoon, January 21 in Los Angeles left one person with injuries, Los Angeles Police said.

Photos from the scene published by TMZ show a large SUV on top of at least two vehicles at an intersection in Brentwood while the ‘Terminator’ actor can be seen standing nearby.

Police said that no arrest has been made and ruled out the involvement of drugs and alcohol.

Officers did not identify those involved but the actor and former California governor’s spokesman confirmed to the Los Angeles Times that he was driving the SUV when the incident occurred.

A report by police, seen by CBS Los Angeles, said that the SUV driver was “near the intersection of Sunset Boulevard and Allenford Avenue, when a collision occurred with a red Prius making a u-turn as he continued through a ‘red arrow’ signal to turn left.”

It added that the SUV rolled on top of the Prius and ended up hitting two other vehicles.

One person was taken to hospital by ambulance, but the injuries are not thought to be life threatening.

Schwarzenegger’s spokesman said that the actor was uninjured and had spoken with emergency services and the injured person.

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Minna district head suspended over forceful marriage



District Head of Allawa in Shiroro Local Government Area of Niger State, Mallam Bello Haruna has been suspended by Minna Emirate Council for engaging in forceful marriage.

The district head who was accused of forcefully marrying out a girl (name withheld), humiliating her father and also ordering that she be beaten by vigilantes, was also accused of insubordination by not answering the calls from the Emirate council leaders to explain some of the complaints against him.

In a letter signed by the Emirate’s assistant secretary, Usman Umaru Guni, the district head was accused of not having the leadership qualities necessary for peace and progress of the community he was appointed to lead.

Galadima Allawa, Ahmadu Magaji has now been appointed as the acting district head.

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