CBN extends deadline for submission of 2019 audited financial statements by OFIs

.NECA welcomes lower interest rates

By Dike Onwuamaeze and Chris Uba

The Central Bank of Nigeria (CBN) has extended the deadline for submitting 2019 audited financial statements by other financial institutions (AIF) under its regulations from April 30 to July 31, 2020.

The director of the AIF supervision department, CBN, Nkiru Asiagbu, who revealed this in a letter to the AIFs, some of which include finance houses, microfinance banks, Bureau De Change, explained that the decision to extend the delay was due to lockdowns in most cities due to COVID-19.

The CBN explained: “In accordance with the provisions of Article 27 (1) (a) of BOFIA, all banks and OFIs are required to submit audited financial statements for each financial year to the CBN for approval before the end of the financial year. fourth month following the year to which they relate.

“As a result, the 2019 audited financial statements are expected to have reached the CBN by April 30, 2020. However, we have observed that the lockdown of most cities across the country due to the coronavirus pandemic has restricted the engagement of external auditors and the day-to-day operations of all OFIs across the country.

“Therefore, the submission deadline has been extended by three months. For the avoidance of doubt, all OFIs are required to submit the 2019 Audited Financial Statements by July 31, 2020. Please note that the CBN will monitor compliance with the extended date and defaulters would be sanctioned accordingly.
Meanwhile, the Nigeria Employers’ Consultative Association (NECA) applauded the Monetary Policy Committee (MPC) for its decision to cut the monetary policy rate (MPR) from 13.5 percent to 12.5 percent .

In a statement released by NECA CEO Dr Timothy Olawale, the association said development signals a favorable response to growth, which could lead to a reduction in the cost of credit, increase investment and have a positive impact on production growth, in order to meet current global challenges.

“We applaud the current decision of the MPC, which fits perfectly with the association’s previous recommendation.

“We believe the committee understands that a high interest rate is a risk to the economy at this time.

“We therefore called for a synergy between fiscal and monetary policy in order to move the economy, which is already in the bleeding phase.

“The development of more robust and coordinated stimulus plans for the sectors most affected by the pandemic, and the opening of the non-oil economy to greater productivity, in order to reduce the expected shock of the fall in world prices of fuel. oil, would be a welcome development to pull the economy out of recession.

The NECA noted, however, that the MPC kept other key parameters unchanged, as the required cash reserve (CRR) remained at 22.7 percent while the liquidity ratio was held at 30 percent. The committee also retained the asymmetric corridor around the MPR at + 200 / -500bps.

“With the negative effects of COVID-19, the double challenge of global oil prices and the overexposure of our economy to external shocks, this decision is a welcome development for the monetary authority by easing its policy in order to protect the economy” , said the association.

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Marianne R. Winn