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BBC earns £300,000 from Saudi oil firm despite net-zero pledge

BBC

BBC earns £300,000 from Saudi oil firm despite net-zero pledge

The BBC received about £300,000 in advertising revenue last year from Saudi Arabia’s national oil company, Aramco, despite BBC director general Tim Davie calling on every arm of the broadcaster to “dial up the focus on sustainability” and reduce net greenhouse gas emissions.

Although the BBC does not carry advertising in the UK, much of its overseas output is supported by commercials.

Big fossil fuel companies have spent approximately $660,000 (£483,000) with the BBC on US-focused digital adverts since 2018, according to projections produced by the advertising data firm MediaRadar. Most of this came from the national Saudi oil company – although BP, Exelon and Phillips 66 are among the other fossil fuel business estimated to have spent five-figure sums advertising on the BBC’s digital outlets.

The real figure for how much the BBC is making from large fossil fuel companies could be much higher when other forms of advertising are taken into account.

Last month the BBC said it would be trying to eliminate “fossil fuel usage across its operations” as part of a “deep decarbonisation” strategy to hit net zero by 2030, but the corporation has been accepting money from companies that take oil and gas out of the ground.

“We have clear guidelines around advertising which are publicly available,” said a BBC spokesperson. “We take care with all of our advertising to ensure it is not misleading.”

Davie has emphasised the need to increase the corporation’s commercial revenues, including from outside the UK, to make up for the real-terms cuts to the licence fee income imposed by the British government.

Despite continuing to accept money from big fossil fuel companies, the BBC is among the online publishers who have also benefited from the increase in advertising around environment-related material in recent weeks, as corporations rush to promote their green credentials before the Cop26 summit in Glasgow.

The BBC has struck deals with the international investment arm of the Scottish government to make a series of programmes on how to reduce carbon in the buildup to Cop26. There is also BBC material sponsored by US supermarket giant Walmart “looking at nine countries’ progress on climate since signing the Paris Agreement”, as well as episodes of a show called Follow the Food: The Carbon Challenge about food security, sponsored by Corteva Agriscience.

Using the same estimates from MediaRadar for US-focused digital advertising bought by big fossil fuel companies, the Washington Post has taken $12.8m since 2016, Politico took $9.5m, CNN took $6.6m, and the New York Times took $4.5m.

The Washington Post, Politico and CNN did not respond to a request for comment.

The New York Times repeated its commitment to journalism covering the climate crisis, but does not have a policy against accepting ad money beyond their general guidelines: “All advertising is clearly labeled, entirely separate from our newsroom and plays an important role in helping to fund our independent journalism and the continued expansion of our coverage on the biggest stories of our time, including climate change, across a breadth of analysis and formats.”

Business

CBN gives fresh guidelines on dormant accounts, unclaimed balances in banks

The Central Bank of Nigeria, CBN, has directed all banks and other financial institutions in the country to transfer all dormant accounts and unclaimed balances and other financial assets to its dedicated account.

The apex bank disclosed this on Friday in a guideline on the management of dormant accounts, unclaimed balances signed by its acting director of the Financial Policy and Banking Regulation Department, John Onojah.

According to the circular, all dormant accounts and unclaimed balances with banks for at least ten years will be warehoused in a dedicated account known as the Unclaimed Balances Trust Fund (UBTF) Pool Account”.

Accordingly, CBN said the funds from Dormant Accounts, unclaimed balances may be invested in Nigerian Treasury Bills (NTBs) and other government securities.

However, the new Guideline which is a review of the Guideline issued in October 2015 exempted dormant accounts, and unclaimed balances under litigation and investigation.

“CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows:

“Open and maintain the ‘UBTF Pool Account’; Maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account;

“Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee’;

“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than ten (10) working days from the date of receipt of the request and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension,” it said.

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Business

CBN’s decisive actions has strengthen the economy- Cardoso

The Central Bank of Nigeria (CBN) said in Abuja on Friday that its monetary policies and actions have stimulated growth and stability of the nation’s economy.

 

CBN Governor, Mr. Olayemi Cardoso, said this during an engagement with Senate Committee on Banking, Insurance and other Financial Institutions.

Cardoso said that given the positive indicators, Nigerian were in for better days.

He said: “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June indicating successful price discovery, increased market efficiency and reduced arbitrage opportunities.

“The stock of external reserves increased to 36.89 billion dollars as of July 16, compared with 33.22 billion dollars as at end-Dec 2023, driven largely by receipts from crude oil related taxes and third-party receipts.

“In first quarter 2024, we maintained a current account surplus and saw improvements in our trade balance.

According to him, the nation’s external reserves level as at end of June can finance over 11 months of importation of goods and services or 14 months of goods only.

Cardoso said this was significantly higher than the prescribed international benchmark of 3.0 months, indicating a strong buffer against external shocks.

He said that the banking sector remained robust and diverse, comprising 26 commercial banks, six merchant banks and four non-interest banks.

“Key indicators such as capital adequacy, liquidity, and non-performing loan ratios all showed impressive improvements, underscoring the sector’s growing stability and resilience.

“The equity market has shown impressive performance, with the All-Share Index rising by 33.81 per cent and market capitalisation expanding by 38.33 per cent from Dec 2023 to June 2024, reflecting growing investors’ confidence,” he said.

Cardoso said that while CBN was encouraged by these positive trends, it remained vigilant and committed to implementing policies that support sustainable growth in the financial markets, while maintaining overall economic stability.

He also assured  members of the committee that required measures and strategies had been mapped out to confront emerging challenges.

“To combat inflation, we have implemented a comprehensive set of monetary policy measures.

“These include raising the policy rate by 750 basis points to 26.25 per cent, increasing cash reserve ratios, normalising open market operations as our primary liquidity management tool.

“And adopting Inflation Targeting as our new monetary policy framework,” he said.

Cardoso said in the area of banking supervision, CBN had taken decisive actions to ensure the safety, soundness, and resilience of the banking industry.

He said that key measures included intervention in three banks, revocation of Heritage Bank’s license, increasing minimum capital requirements, and enhancing AML/CFT supervision.

“We also introduced new frameworks for Cash Reserve Requirements and cybersecurity and prohibited the use of foreign currency collaterals for local currency loans,” he said.

Cardoso said that CBN was in the process of reviewing micro and macro prudential guidelines to reinforce the resilience of financial institutions to withstand tightened conditions, thereeby creating a secure and attractive investment climate.

“We have signaled our plans to re-capitalise deposit money banks in Nigeria to improve capital inadequacy and their capacity to grow the economy.

“Our ultimate goal is to create a more stable, resilient, and efficient financial system that can better serve the Nigerian economy, while adhering to international best practices,” he said.

Earlier, Chairman of the Committee, Sen. Adetokunbo Abiru, said the purpose of the interaction was to update the committee on efforts, activities, objectives and plans of the CBN with respect to monetary policy.

 

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Nigeria’s external reserves surge to $35.77bn – CBN

Nigeria’s external reserves increased to $35.77 billion on Thursday up from the $33.09 Billion at the end of 2023.

This is according to Thursday’s data from the Central Bank of Nigeria on the country’s external reserves movement.

The figure represents a $2.68 billion increase in the country’s external reserves in the past six months.

Further data showed that Nigeria’s foreign reserve crossed the $35.05bn on July 8 to the $35.77 mark on Thursday.

Meanwhile, according to the recently released economic outlook by CBN, titled ‘Macroeconomic Outlook: Price Discovery for Economic Stabilisation’, the apex bank had projected a decline in the country’s external reserves in 2024.

The CBN based its assumption on continued payments of outstanding foreign exchange forward obligations, matured foreign exchange swaps, and debt service.

The apex bank, however, said, “the expected improvement in crude oil earnings, together with recent reforms in the foreign exchange market and energy sector, however, would cushion the drop in external reserves.”

The outlook also projected a marginal increase to $19.42 billion from $19.17 billion in 2023 for diaspora remittances.

“The external reserves, which stood at $33.09bn in 2023 could reduce slightly in 2024.

“This is on the assumption of continued payments of outstanding foreign exchange forward obligations, matured foreign exchange swaps, and debt service,” it said.

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