Category: Lead

  • CBN: withdrawal limit will tackle kidnapping, reduce cost of minting, cash processing

    CBN: withdrawal limit will tackle kidnapping, reduce cost of minting, cash processing

    The Central Bank of Nigeria (CBN) on Thursday said the cash withdrawal limit will help tackle kidnapping and reduce cost of minting new notes.

    The CBN had announced a weekly withdrawal limit of N100,000 for individuals and N1million for corporate entities.

    Late Wednesday, the CBN increased the maximum weekly limit for cash withdrawal across all channels to N500,000 and N5,000,000.

    Deputy Governor, Financial System Stability, Aisha Ahmad, who briefed the House of Representatives, said the policy will also check money laundering.

    Read Also: CBN raises weekly cash withdrawal limit to N500,000

    She said it will reduce cost of processing cash, cost of minting new notes as well as cost of destroying old tenders.

    She explained available data indicate that 94 per cent of all cash transaction falls within the new limit of N500,000. 

    She said 82 per cent of corporate cash transactions fall below the new limit indicated for corporate bodies.

    The implication, she said, is that about 84 per cent of individuals will not be affected by the cash withdrawal limit.

    Ahmad added that processing fee on the excess withdrawal will only be charged against the extra cash and not the entire sum.

    She said as a result of feedback from Nigerians and the concerns raised by the House, the apex bank raised the weekly withdrawal limit from N100,000 to N500,000.

    She dismissed fears that the policy is targeted at anyone.

    Details shortly…

  • CBN raises weekly cash withdrawal limit to N500,000

    CBN raises weekly cash withdrawal limit to N500,000

    Those opposed to the proposed N100, 000 weekly cash withdrawal limit for individuals and N1, 000, 000 for corporate entities got a major relief yesterday. The Central Bank of Nigeria (CBN) reversed its initial policy.

    The apex bank announced upward adjustments in the weekly cash withdrawal limit to N500, 000 for individual and N5 million for corporate bodies.

    The policy shift was announced by the CBN Director in charge of Banking Supervision Department, Haruna Mustafa.

    The review represents about 400 per cent increase, from N100, 000 and N1 million withdrawal limits set by the apex bank in its December 6 circular.

    In a memo sent to “All Deposit Money Banks (DMBS) and Other Financial Institutions-Payment Service Banks (PSBs); Primary Mortgage Banks (PMBs); Microfinance Banks (MFBs), Mobile Money Operators (MMOs) and Agents, Mustafa said the adjustments followed feedback received from stakeholders.

    He said: “The maximum weekly limit for cash withdrawal across all channels by Individuals and corporate organizations shall be N500, 000.00 and N5 million respectively.

    “In compelling circumstances where cash withdrawal above the limits in above is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organizations respectively.”

    The apex bank also directed that third party cheques above N100, 000 shall not be eligible for payment over the counter. It said the extant limit of N10 million on clearing cheques subsists.

    It further directed financial institutions, that where the limit set is to be exceeded, to obtain valid means of identification of the payee.

    The bank listed the documents that can be used as National ID; International Passport; Driver’s License; Bank Verification Number (BVN) of the payee; Tax Identification Number (TIN) of both the payee and the payer from the customer, at the minimum.

    It insisted that such means of identification must be uploaded on the portal created for such purpose by the CBN.

    The apex bank also said approval in writing by the Managing Director/Chief Executive Officer of the financial institution authorising the withdrawal will also be required for customers exceeding set cash withdrawal limit.

    It said: “Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.

    “Compliance with extant AML/CFT regulations relating to KYC, on-going customer due diligence, currency and suspicious transaction reporting etc. is mandatory in all circumstances.”

    It added that customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD cards/POS, eNaira, etc.) to conduct their banking transactions.

    The memo reads: “Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities. They will continue to perform these strategic functions, in line with existing regulations governing their activities

    “The CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society.”

    “All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions. The above directives supersede that of December 6, 2022 and take effect nationwide.”

    The adjusted directive takes effect nationwide from January 9, 2023, the circular said.

  • Buhari ready to campaign for Tinubu ‘with energy’

    Buhari ready to campaign for Tinubu ‘with energy’

    President Muhammadu Buhari yesterday reiterated his determination to campaign for All Progressives Congress (APC) presidential candidates, Asiwaju Bola Ahmed Tinubu, and other candidates with “full energy and conviction”.

    This has dispelled concerns in some quarters that the President has not featured in campaigns since the launch in Jos, Plateau State. However, while the president will be committed to party politics, his official duties will equally be upheld at the same time.

    According to a statement by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, the President expressed his readiness to campaign for Tinubu at a meeting with the Nigerian community in Washington DC during his recent visit to the United States of America (USA).

    President Buhari said that he was ready to campaign for the party’s victory in next year’s general election.

    He noted that the APC campaigns have so far been the most aggressive in recent history, adding that “they have been impressive and of a high voltage, compared to the opposition that seems to be playing catch-up.

    President Buhari expressed strong optimism that the party will win all the elections fairly and squarely.

  • Buhari seeks approval for N1tr cash advance from CBN

    Buhari seeks approval for N1tr cash advance from CBN

    President Muhammadu Buhari has asked the National Assembly to approve his request for a cash advance of N1 trillion to the Federal Government by the Central Bank of Nigeria (CBN).

    He also urged the Senate to approve N819.53 billion as Supplementary Appropriation Bill for the outgoing year.

    Both requests were made yesterday in two letters sent to the two Chambers of the National Assembly and read at plenary by Senate President Ahmad Lawan and House of Representatives Speaker Femi Gbajabiamila.

    In his letter titled: “Restructuring of Ways and Means Advances”, Buhari said: “The Ways and Means Advances by the Central Bank of Nigeria (CBN) to the Federal Government has been a funding option available to the Federal Government to cater for short term emergency finance to fund delayed government expected cash receipts or fiscal deficits.

    “The Ways and Means Balances as at 19th December 2022 in the sum of N22,719,703,884,306.90 is hereby attached as annexure one.

    “The detailed breakdown of the additional N1trillion to be advanced by the CBN is attached as annexure two.

    “I have approved the securitization of the Ways and Means Balances along the following terms: Amount – N23, 019, 703,774,306.90; Tenor -40 years; Moratorium of principal repayment – three years; and pricing interest rate – nine per cent.

    “Consequently, your concurrence and approval is hereby sought to allow for the implementation of same.”

    On the letter of request for the 2022 Supplementary Budget addressed to the Senate President and House Speaker, Buhari said: “The country has witnessed the worst flood incident in recent history which has caused massive destruction of farmlands at a point already close to harvest season.

    “This may compound the situation of food security and nutrition in the country.

    “The flood also devastated the road infrastructure across the 36 states and the FCT that affected several sections of major roads and bridges nationwide that are critical for movement of goods and services.

    “The water sector was equally affected by the flood and there is the need to complete some ongoing critical projects that have achieved about 85 per cent completion.

    “The nine critical projects proposed in the sector cuts across water supply, dam and irrigation projects nationwide.

    “I have therefore approved a Supplementary 2022 Appropriation of N819, 536,937,813, all of which are capital expenditure.

    “The supplementary budget will be financed through additional domestic borrowings. This will raise the budget deficit for 2022 to N8.17trillion and deficit to GDP ratio to 4.43 per cent.”

    The two principal Officers referred the letters to the relevant committees in the Red and Green Chambers for further legislative work.

    Lawan,  urged the relevant joint committees to interact with ministers of Finance, Budget and National Planning, her Agriculture and Water Resources counterpart and the CBN governor to “ensure that we get the right information.”

  • How Blue Light Rail will benefit Lagos, by Sanwo-Olu

    How Blue Light Rail will benefit Lagos, by Sanwo-Olu

    • Test-running of project begins

    • Buhari to kick-off Phase II January

    Lagos State yesterday made history, following the completion of infrastructure work of the Blue Rail Line Project.

    Governor Babajide Sanwo-Olu, who took the first ride, along with Deputy Governor Obafemi Hamzat, House of Assembly Speaker Mudashiru Obasa and other government officials, also disclosed that the project will be commissioned in January next year.

    The train ride from Iganmu, the National Theatre Station, took barely 15 minutes. It started by 1.34pm and ended by 2.02pm.

    The train, an airconditioned rail car, one of the three that would be used on that corridor, came back to the National Theatre Station.

    Economic experts hailed the project, saying that it will accelerate growth and enhance transportation in the Centre of Excellence.

    Lagos accounts for more than 30 per cent of Nigeria’s Gross Domestic Products (GDP). It is the nation’s economic nerve centre, home to some 10 per cent of the country’s population. Lagos has the largest concentration of corporate activities in Nigeria, including the operational head offices of the major financial institutions, manufacturers and services providers.

    Sanwo-Olu said with the completion of construction, the stage is set for the official commissioning of the legacy project, the first, wholly funded train project by a sub-national government in Africa, in January, by President Muhammadu Buhari.

    Former President, Nigeria  Institute of  Building (NIOB), Mr Kunle Awobodu  said the Blue Rail Project would drive economic growth, noting that transportation is key to economic development.

    He said artisans who live downtown and work in high-brow areas of Lekki, Ikoyi and Victoria Island  will be  best served as  they come from distant areas to work in those upscale areas.

    According to him, the implication of high cost of transportation is that workers are delayed and do not put in the maximum eight hours required for them to work because of delays.

    He said the cost of transportation and the delay on the road have made workers to devise many survival measures, including abandoning their families, sleeping at workplaces and construction sites, with many unhealthy implications.

    Awobodu said the train service will also afford car owners the opportunity  to  park their cars at designated places and take a train ride, thus reducing cost and stress.

    Director,  Centre For The Promotion Of Private Enterprise, (CPPE),   Dr Muda Yusuf said transportation was critical to connectivity in an economy as connectivity drives the tempo and velocity of economic activities.

    He said the rail project would have a phenomenal impact on economic activities, adding that there will be a knock-on effects on the wider Nigerian economy.

    “The project is even more significant because it has prioritized connectivity to the densely populated locations in the state,” Yusuf said.

    The former Director-General of Lagos Chamber of Commerce and Industry (LCCI) expressed optimism that the rail connection would be expanded to cover other locations where traffic congestion remains a nightmare, including the Lekki corridor.

    “The state government deserves commendation for its unwavering commitment to the rail project,” Yusuf said.

    The historic train rid yesterday came 41 years after the metroline was first conceived in the state of Aquatic Splendor by Second Republic Governor Lateef Jakande defunct Unity Party of Nigeria (UPN). But, it was aborted in 1983.

    Sanwo-Olu said President Muhammadu Buhari will perform the ground breaking ceremony of the Phase II of the Blue Line Rail as well as the 37 kilometres Red Rail line, which would run from Oyingbo to Agbado, which was also the phase one of the Red Line project.

    “Let me make it expressly clear that Mr President Muhammadu Buhari has graciously accepted to come and commission the Blue Rail in January and we would ensure that he also performs the ground breaking of the second phase of the project because we do not want to waste further time on the project.”

    While the Blue Line runs on electricity, which would be supplied by an Independent Power Project (IPP), as part of efforts by the state government towards cleaner energy, the Red Rail Line would run on diesel.

    Sanwo-Olu was accompanied to the event by Deputy Governor Dr. Obafemi Hamzat, whose father, the late Olatunji Hamzat, was the Commissioner of Transportation.

    Sanwo-Olu was part of the team that conceptualised the project under Asiwaju Bola Ahmed Tinubu, at the dawn of the Fourth Republic. He also was in the cabinet during the early stage of the construction under the Babatunde Fashola administration. The governor saluted the resilience of members of his team for the actualization of the Blue Line, which has gone through several challenges.

    He extolled the visionary doggedness of Tinubu, who he described as the father of modern Lagos. “Lagos that Asiwaju Bola Ahmed Tinubu inherited is a struggling metropolis burdened by multiple challenges, for which he developed a road map which his successors have continued to build on,” he said.

    The completion of the Blue Line is a strong testimony of the commitment of the government to continue to build on the legacies of the past administrations and the pioneering vision of Tinubu.

    He said: “The first phase of the 13-kilometre Blue Line which stretches from Marina to Mile 2, has five Stations stretch, out of the total of 27km that is the entire Blue Line, and which will run from Marina to Okokomaiko.”

    According to him, the three train sets needed to run operation on the corridor is already on ground.

    Sanwo-Olu praised Fashola who completed four stations at Mile 2, Suru Alaba, Orile-Iganmu and National Theatre, and commenced work on the elevated section of the track up to Ijora.

    “I want to also place on record the role played by the Central Bank of Nigeria (CBN) under the leadership of Mr. Godwin Emefiele. The CBN’s Differentiated Cash Reserves Requirement (DCRR) made it possible for three banks, Fidelity Bank Plc, Sterling Bank Plc and Access Bank Plc to pool resources together to provide credit financing for the completion of this first phase of the Blue Line. I am grateful to the leadership of the three banks for believing in us.”

    Commissioner for Transportation Dr Frederic Oladeinde said the infrastructure ceremony is a confirmation of the governor’s commitment to public transportation in line with the administration’s THEMES Agenda, which has Transportation as its first pillar.

    “Thank you for sticking to your promise to Lagosians to complete the infrastructure for the first phase of the Blue Rail in the last quarter of the year. Lagosians now trust you that you are a man of integrity,” Oladeinde said.

    LAMATA’s Managing Director Abimbola Akinajo, an engineer described the completion of infrastructure as a demonstration of the governor’s audacious courage to the intermodal connectivity in line with the strategic transport masterplan.

    Under the masterplan, Lagos State would be served by six metro line rails, all of which are colour coded: The Blue, (which serves Marina to Okokomaiko) the Red Line, known as the North-South Rail Line, (which runs from Agbado to Marina, with first phase, Agbado to Oyingbo nearing completion), the Green Line (from Marina to Lekki) Purple Line (Redemption Camp to Ojo), Yellow Line (Ota to National Theatre), Orange Line (Ikeja to Agbowa), one mono rail from Ikoyi and Vitoria Island.

    Akinajo said the governor had to use a window of funding by the Central Bank of Nigeria, which pooled three banks – Access Bank Plc, Fidelity Bank Plc and and Sterling Bank Plc – together to fund the completion of the first phase of the Blue Line infrastructure 13 of the 27-kilometre stretch.

    She said studies carried out by her office showed that the Marina to Mile 2 corridor would carry 250,000 passenger traffic daily, and when the second phase is eventually completed, the corridor would be able to cater to 500,000 passenger traffic daily.

    She said the train is calibrated to run on 80km/per hour and would drastically reduce travel time which would have a positive impact on productivity of residents of the state.

    Akinajo said thousands of jobs would be created directly and indirectly when the project fully begins in January. She said e-payment integration is almost completed and the state’s Cowry Card, which is already being used on the buses and waterways, would be introduced on the train.

    Akinajo, however, disclosed that the government is yet to arrive at a fare for the train.

    She said:  “What we can say for now is that the fare, when decision on that is eventually taken would be affordable.”

    Chairman CCECC Nigeria Ltd., Mr Zhang Zhichen said the Chinese corporation is happy to be signing off on the project 13 years after the ground breaking of the project.

    “Over the past years, we overcame various challenges such as funding shortages, hiking material prices and the COVID-19 pandemic.

    China’s Consul General Chu Maoming said the Blue Line is another testimony of the very strong bilateral relationship between Nigeria and China, adding that his country would continue to support Nigeria in its attempt to provide landmark infrastructure that could transform the lives of Nigerians.

    He commended the Lagos State Government for its commitment to ensuring the completion of the Blue and Red Lines by the Chinese expert team.

  • CBN naira reforms: Heavy protest rocks Abuja

    CBN naira reforms: Heavy protest rocks Abuja

    • CSOs warn DSS on plot against Emefiele

    • I’m attending to health challenges, CBN boss tells Reps

    • Deputy governor to brief lawmakers on cash withdrawal limits, new currency notes

    Civil Society Organisations (CSOs) staged a massive protest yesterday in Abuja to draw the attention of the Federal Government to alleged plot by some politicians to nail Central Bank of Nigeria (CBN) Governor Godwin Emefiele for trump-up terrorism allegation.

    The protesters described those behind the plot as enemies of the country who were against the naira reforms introduced by the CBN governor.

    They noted that corrupt politicians were trying to frustrate the apex bank’s policies by using agents of the Department of State Services (DSS) to harass Emefiele.

    The CSOs, under the aegis of Coalition of Civil Society Group and Youth Coalition (CCSGYG), staged the protest opposite the headquarters of the Nigerian Television Authority (NTA).

    They urged the DSS not to allow itself to be used by “corrupt and overzealous politicians” to harass Emefiele and arrest the CBN governor on trump-up charges.

    The protest, which lasted several hours, disrupted vehicular movement around the NTA headquarters and other adjoining roads.

    The coalition, led by its President, Bassey Etuk Williams, and Secretary, Abubakar Ibrahim, insisted that the apex bank’s governor is not a terrorist, as alleged.

    Williams said: “Our attention was once again drawn to the recent motion ex parte brought before a Federal High Court in Abuja by men of DSS wherein they sought relief to arrest and detain the CBN Governor, Godwin Emefiele, based on trump-up charges of financing terrorism, economic crime and crime of national security.

    “This motion was surprisingly done without concrete evidence to prove the frivolous allegations against the workaholic CBN governor that the country can’t forget easily based on his several positive impactful economic and monetary policies approved by President Muhammadu Buhari for implementation.

    “We are surprised to note the division that exists among top government officials of this regime. While the CBN governor was in the faraway United States of America (U.S.A) on the entourage of President Buhari, another arm is seeking his arrest back home on trump-up charges without the consent of the President.

    “The question that begs for an answer is: who gave such a directive? Is Mr. President aware of this allegation before moving in to effect arrest via a court order? On whose interest is the DSS really working?”

    The coalition recalled frantic moves by some politicians, including a House of Representatives member, to drag Emefiele’s name through the mire since the CBN governor started the naira reforms, among other issues.

    It warned the DSS against joining desperate politicians to rubbish the CBN monetary policies that President Buhari had approved.

    The CSOs passed a vote of confidence in the CBN governor for introducing the new cash withdrawal policy, among others.

    Also, Emefiele told the House of Representatives yesterday that he would not be able to appear before it today due to a health challenge.

    He was to brief the lawmakers on the new cash withdrawal limit and the redesigned naira notes.

    The CBN governor also said he was still in the United States for an official engagement, and would not be able to appear before the House on December 15.

    The House resolved to re-invite the CBN governor to appear to brief the House unfailingly by 10 a.m today.

    But during plenary yesterday, Gbajabiamila read a letter from the CBN governor that he would delegate the responsibility to a deputy.

    Reading the CBN letter, Gbajabiamila said: “We refer to your letter of December 20, 2022 on the above subjects, inviting the governor of the Central Bank of Nigeria to appear in person before the House on Thursday, December 22…”

  • PHOTOS: Osinbajo visits Tinubu, Shettima

    PHOTOS: Osinbajo visits Tinubu, Shettima

    Vice President Yemi Osinbajo on Wednesday evening, visited the presidential candidate of the ruling All Progressives Congress (APC), Asiwaju Bola Tinubu and his running mate, Kashim Shettima in Abuja.

    Credit: Twitter | @officialABAT
  • JUST IN: Hoodlums attack another INEC office in Imo as NSCDC chief warns commanders

    JUST IN: Hoodlums attack another INEC office in Imo as NSCDC chief warns commanders

    Hoodlums have vandalised another office of the Independent National Electoral Commission (INEC) in Imo State.

    Resident Electoral Commissioner, Prof. Sylvia Agu, said the office is in Isu Local Government Area.

    It is the fourth attack on INEC facilities in the state in less than three weeks.

    Previous attacks occurred in Orlu, Oru West LGAs and the state INEC headquarters.

    National Commissioner, Festus Okoye, said in a statement that eight windows were smashed and burglary proofs removed in the Wednesday’s attack.

    “Movable and immovable equipment vas well as other materials were not removed,” INEC said.

    Critical materials such as ballot boxes and voting cubicles have been evacuated to another INEC facility for safe keeping.

    INEC said uncollected permanent voter cards have been secured.

    Also on Wednesday, Commandant-General of the Nigerian Security and Civil Defence Corps (NSCDC), Dr Ahmed Audi, said zonal and state commanders would be held responsible for any further attacks on INEC offices and facilities.

    He spoke during a meeting with the commanders in Abuja.

    Audi said: “We have credible intelligence reports that some dangerous groups are now in town wearing uniforms to unleash terror on the people.

    “Some are targeting INEC facilities, materials and infrastructures in order to make the conduct of the 2023 general elections difficult.

    “They used bread soaked in petrol and gas, light them up and throw them at INEC infrastructures and offices. Somebody somewhere must see them.

    “Our duty henceforth is to prevent this criminality and bring those behind them to justice before they achieved their aims.

    “We must work with the police and other security agencies to stop further attacks on INEC infrastructures.

    “You will be held responsible henceforth in case of any further attacks on INEC facilities.”

  • CBN reverses cash withdrawal policy, extends limit to N500,000

    CBN reverses cash withdrawal policy, extends limit to N500,000

    The Central Bank of Nigeria (CBN) has reversed its decision on maximum cash withdrawal limits.

    In a new circular issued to all banks late Wednesday, the CBN said it increased the maximum weekly limit for cash withdrawal across all channels.

    Going forward, individuals and corporate organisations can now withdraw N500,000 and N5,000,000 cash.

    The circular was signed by Haruna Mustafa, Director of Banking Supervision.

    It reads in part: “In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.”

    In the case of third-party cheques above N100,000, the CBN directed that it cannot be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsists.

    “Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable,” the CBN said.

    It urged bank customers to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.

    CBN acknowledged that “bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities”.

    “They will continue to perform these strategic functions in line with existing regulations governing their activities,” it said.

    The CBN said it recognises “the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society”.

    The new directive takes effect nationwide from January 9.

  • Buhari proposes N819.5bn supplementary budget for 2022

    Buhari proposes N819.5bn supplementary budget for 2022

    President Muhammadu Buhari on Wednesday transmitted a 2022 supplementary Appropriation Bill of N819.5 billion to the Senate.

    In a letter read on the floor by Senate President Ahmad Lawan, the President said the amount is meant to complete ongoing capital projects.

    Read Also: Buhari approves substantive Rector for Edepoly

    These include roads and dams destroyed by flooding.

    He added that the sum would be sourced from additional domestic borrowings.

    Details shortly…