CBN investment in associates hit N125.57bn

The Central Bank of Nigeria (CBN) has invested N125.57 billion in its associates according to audited financial statements for 2014.

This represents an increase of 11 per cent or N12.87 billion from N112.7 billion recorded in 2013 according to the International Financial Reporting Standard (IFRS) adopted results.

The apex banking regulatory body with 42.5 per cent stake in Africa Finance Corporation (AFC) had invested N89.6 billion in the year under consideration,   12.3 per cent or N79.85 billion above the N79.85 billion invested in 2013.

CBN investment in Nigerian Export Import Bank (NEXIM) remained flat at N22.46 billion while growing its investment in Bank of Industry (BOI) by 34.2 per cent from N8.3 billion recorded in 2013 to N11.24 billion in 2014.

Investment in Agricultural Credit Guarantee Scheme Fund (ACGSF) stood at N1.86 billion for the second consecutive year, although CBN had increased its stake in ACGSF by 40 per cent.

In the year under review, CBN invested N186 million in FMDQ-OTC Plc with N173 million investment in Nigeria Inter-Bank Settlement System (NIBSS) as against N149 million in 2013.

Since 2013,  CBN had increased its shareholding in three organizations these include five per cent shareholding  in National Economic Reconstruction Fund (NERFUND), 59.7 per cent in Abuja Securities & Commodity Exchange (ASCE) and 14 per cent stake in Bank of Agriculture (BOA).

The CBN noted that it does not hold unlisted equity investments in various entities that are classified as associates.

It also stated that the investees are involved in activities that will promote economic growth, which goals form part of the CBN's agenda and mandate.

According to CBN statement, the risks faced as a result of these investments is limited to the original cost invested and does has not made any capital commitments to any of the associates.