Fani Kayode laments…as Okupe quits PDP

Fani Kayode laments…as Okupe quits PDP

One of the leading voices of the opposition party in Nigeria has expressed shock and dismay over the sudden departure Dr. Doyin Okupe from the People’s Democratic Party at a time when his political experience is much needed as the party is daily struggling to hold its centre.

Chief Femi Fani-Kayode who spoke about the development shortly after the news broke of the quitting of Okupe from the embattled party through his Twitter handle said “The dumping of PDP by @doyinokupe is a big loss for our party.I spoke with him today and heard real reasons.We may lose more people soon.

We will recall that scores of politicians from the PDP have crossed carpet to the ruling All Progressive Congress in the last one month and there are fears in many quarters that these are the last days of Africa’s biggest party.Former Minister of State for Defence Musiliu Obanikoro who was one of the leading lights in the party defected to the ruling APC some weeks ago

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  1. Johnpaul Nwadike at 10:09 pm

    The Capital Adequacy Ratios (CARs) of two banks have fallen below
    regulatory capital requirement of 10 per cent, the result of stress test conducted by the
    Central Bank of Nigeria (CBN) on the status of the banking system has revealed.

    The solvency stress test, contained in the Financial Stability Report, released yesterday
    by the CBN governor, Godwin Emefiele, classified lenders into three groups:
    large banks, those with assets greater than or equal
    to N1 trillion; medium banks with assets greater than or equal to N500 billion but less than N1
    trillion and small banks with assets of less than N500 billion.

    The CAR is a ratio of bank’s assets to its risks and is 10 per cent for national banks and 15 per cent for banks with international subsidiaries and 16 per cent for Systematically Important Banks (SIBs).
    The test result showed that one of the affected banks had CAR of 1.29 per cent before the test,
    while two banks had 0.78 per cent and 8.2 per cent after
    the test.

    The stress test captured the idiosyncratic nature of individual bank’s balance sheet
    and macro-prudential concerns, using the bottom-up and top-down approaches.
    The exercise covered the 23 commercial and merchant banks, using the
    credit, liquidity, interest, foreign exchange rates and foreign exchange trading risks elements.

    The report, which measured the lenders’ positions as
    at December last year, showed that overall, there was high risk
    through unsecured interbank exposure.

    The result of the test also revealed that after a one-day
    run, the liquidity ratio for the industry would decline to
    33.4 per cent from the 48.57 per cent pre-shock position and to 10.24 per cent after a cumulative
    30-day run. A five-day and cumulative 30-day run on the banking industry would result in a liquidity shortfall of N1.79 trillion and N1.93
    trillion, respectively.

    The test further revealed that 17 and 20 banks would record liquidity ratios below the
    prudential threshold of 30 per cent, following the five-day and cumulative 30-day run,

    There was a marginal decline in the quality of assets in the banking
    industry last December, compared with the position at end
    of June 2015. The ratio of non-performing loans to gross loans increased by 0.21 percentage point
    to 4.86 per cent while the decline in asset quality was attributed to the unfavourable macro-economic environment in the review period.

    The banking industry and large banks’ resilience to credit risk was robust.
    A simulated severe shock of a 200 per cent rise in NPLs resulted in CARs of 12.77 and 16.52 per cent for banking industry and large banks, respectively,
    which were above the 10 per cent required regulatory minimum.

    However, medium and small bank groups showed vulnerabilities to severe shocks of 200 per cent rise in NPLs as their
    CARs fell to 7.16 and 6.85 per cent respectively.

    Emefiele said the general decline in commodity prices, China’s efforts at rebalancing its economy and the gradual tightening in US monetary policy
    all combined to hamper growth in many emerging market economies, including Nigeria.

    He said the key task that faced monetary authorities in Nigeria in the reporting period
    centered on the use of effective policy tools to ensure that the shocks arising from instability
    in the global economy were not fully transmitted to the domestic

    The CBN, he said, continued to ensure that the stability of the financial system was maintained and confidence in the system was sustained.

    The policy tool kit included both conventional and unconventional measures
    and these enabled us to respond to the emerging challenges.

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