Holds 3rd AGM virtually
By Nkiruka Nnorom
Nova Merchant Bank has said that domestic borrowing, overdrafts from the Central Bank of Nigeria (CBN) and drawdown from existing deposits held in accounts of extra-budgetary funds are the only options available for the federal government to finance the gap in the 2020 budget.
The bank stated this in its Monthly Economic Insight saying since the 2019 budget deficit was largely financed by the CBN to the tune of about N2.9 trillion through drawdown on ways and means, the federal government might adopt the same approach in 2020.
According to the bank, the FG’s actual new domestic borrowings may sum up to N1.24 trillion with the CBN financing the excess of the gap.
Meanwhile, the bank said it held its third Annual General Meeting (AGM) virtually in adherence with stipulations by the federal and state government in a bid to limit the spread of the Coronavirus pandemic currently ravaging the world.
While presenting the bank’s financial performance for the year ended December 31, 2019, the Chairman, Mr. Philip Oduoza, noted that the bank reported a significant improvement in all the key financial indices compared to 2018 achievements.
He attributed this growth to the successful execution of the 2019 strategic plan in line with the key strategic pillars to position the bank as a market leader by 2025.
“While we acknowledge the present macro-economic landscape and its concerns, and even though we see that the situation remains very fluid, It is our firm belief that the COVID-19 crisis will also result in several opportunities for the Bank, as industry dynamics evolve,” Oduoza said.
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