• Okays Ahmad, Adamu as CBN Deputy Governors

 

The Senate yesterday urged the Central Bank of Nigeria (CBN) to considerably adjust its recent cash withdrawal limit policy in response to public outcry against the move.

The upper chamber also mandated its Committee on Banking, Insurance and Other Financial Institutions to “continue to embark on aggressive oversight of the (apex) Bank on its commitment to flexible adjustment of the withdrawal limit and periodically report outcome to the Senate.”

The Senate also resolved to “support the CBN in the continuous implementation of transformational payments and financial industry initiatives in line with its mandate in accordance with the CBN Act.”

These resolutions of the Senate followed its consideration and approval of the recommendations contained in a report by its  Committee on Banks, Insurance and other Financial Institutions on the recent cash withdrawal limit of the CBN.

The Senate also approved the nomination of a Deputy Governor of the Central Bank of Nigeria (CBN) on Financial System Stability, Mrs Aishat Ndanusa Ahmad for reappointment.

The upper chamber also cleared a Deputy Governor Corporate Services of the apex bank, Edward Lametek Adamu, for reappointment.

President Muhammadu Buhari had last week Tuesday forwarded the names of Ahmad and Adamu for screening and confirmation for reappointment for the second and final terms to the Senate.

The CBN had under its revised cash withdrawal limits placed a limit on cash withdrawals to N20,000 daily for Point Of Sale terminals; N100,000 weekly for private individuals and N500,000 for organisations and corporate bodies weekly, respectively.

However, the policy has continued to face criticism from a cross-section of Nigerians who believe that it is not only “punitive” but “unsustainable.”

The apex bank had said the move would help curb inflation, insecurity and corruption apart from having a beneficial effect on the nation’s economy.

Some Senators, in their contribution to the debate on the policy opposed the policy while others supported it.

Senators Yusuf Abubakar Yusuf, Francis Ailimikhena and Biobarakuma Degi-Eremienyo supported the policy and called on Nigerians to allow it to thrive.

However, Senators Orji Kalu, Ajibola Basiru, Adamu Aliero, Muhammad Adamu Bulkachuwa, Biodun Olujimi, Hassan Hadejia, Chukwuka Utazi, Stella Oduah, Francis Fadahunsi and Kabir Barkiya, among others, opposed the policy.

Some of them argued that even though the policy is targeted at the elites, it would have detrimental effect on the rural populace.

They insisted that the timing of the policy was wrong in view of upcoming general elections and the quantum of money needed by candidates for logistics during campaigns.

The Chairman of the Committee, Senator Uba Sani (APC – Kaduna Central), had during his presentation argued that the planned Cash  Withdrawal Limit Policy was well conceived by the CBN for transformation of the Nation’s economy and that the action fell within the mandate of the apex bank as provided for in section 2(d) and 47 of its extant Act.

However during general debate on the report its recommendations many of the Senators kicked against the timing of the policy, warning that it may lead to mass revolt in the rural areas across the country.

First to oppose the apex bank’s move was Senator Ajibola Basiru (APC – Osun Central), who said the stipulated N100,000 and N500, 000 withdrawal per week for individuals and corporate bodies respectively, were unrealistic.

“Laws are made for people and not the people for the law. If CBN is acting under section 2(d) and 47 of its extant Act to make life difficult for Nigerians through a policy, as representatives of the people we need to intervene.

“Such intervention would be to make the CBN realise that  the proposed cash withdrawal limit policy is unrealistic and very injurious and detrimental to the well-being of rural dwellers, many of whom are our constituents.

“The report of this committee recommending the policy to us and by extension, to Nigerians through suggestion of flexibility in implementation, is vague, nebulous and means nothing,” he said.

Senator Adamu Aliero (PDP – Kebbi Central), in his own contribution, said the picture painted by the committee in its report on the proposed CBN policy, was nothing but an ideal picture of what an economy should be, which is far cry from what economy is, in reality in Nigeria.

“The proposed CBN policy does not capture  the informal sector and it is very detrimental to the livelihood of rural dwellers who are not into e-banking.

“Public outcry against the policy is too much, requiring serious caution as far as implementation is concerned because the Nigerian economy is predominantly rural,” he said.

Senator Adamu Bulkachuwa (PDP – Bauchi North), warned that the proposed policy, if not suspended, may trigger a revolt from rural dwellers.

He said the three recommendations made by the Senate Committee on Banking on the policy , made no sense to him.

“Our committee recommendations on the proposed CBN policy, are nothing but trying to put wool in the eyes of Nigerians,” he said.

Even Senator Orji Uzor Kalu (APC- Abia North), who is the deputy chairman of the

Committee on Banking, said he appended his signature to the report because he did not want to rock the boat.

He said: N100, 000 per week for individuals and N500,000 per week for corporate bodies, is too meagre.

“I recommend N500, 000 per day for individuals and N3 million per day for corporate bodies as being implemented in Abia, Lagos, Ogun, Rivers, FCT, etc, should be sustained across the country for now,” he said.

Senators Olujimi (PDP, – Ekiti South) and Francis Fadahunsi (PDP, Osun) kicked against the timing of the policy and called for massive enlightenment of Nigerians.

“The policy seems to be targeted at the elite who often devise means to circumvent the law. But it will affect millions of Nigerians in the rural areas,” Fadahunsi said.

Stella Oduah (PDP, Anambra) who described it as draconian, said: “Many rural communities in Nigeria have no internet networks. Without necessary infrastructure put in place, the policy will create more trouble,” Oduah said.

GOING by the policy framework released by the Central Bank of Nigeria (CBN), the redesigned N1000, N500 and N200 notes are to be rolled out in banks today.

Last week, CBN Governor, Godwin Emefiele confirmed that the redesigned banknotes were already in banks’ vaults in readiness for today’s disbursement.

Emefiele said the new notes  have been dispatched to the banks, and it is expected that the banks will begin to distribute those currencies to the members of the public who are their customers.

President Muhammadu Buhari unveiled the new notes of of the redesigned notes last week at the Council Chambers of the Presidential Villa, Abuja, shortly before the kick-off of the Federal Executive Council (FEC) meeting.

Emefiele said the introduction of new notes was a deliberate step by government to check corruption and counterfeiting of the notes.

He said: “In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1000 banknotes. Although global best practice is for central banks to redesign, produce and circulate new local legal tender every five to eight years, the naira has not been redesigned in the last 20 years.

“On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections a and b of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022.”

Emefiele said the new and existing currencies shall remain legal tender and circulate together until January 31, next year when the existing currencies shall seize to be legal tender.

The CBN directed all banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately.

“The newly designed currency will be released to the banks in the order of first-come-first-serve basis,” the CBN boss said.

He said the apex bank has moped up over N1 trillion from the banks and CBN, adding that monitoring developments on the exercise.

Emefiele said over N500 billion has been received by the CBN while the banks have also received close to N500 billion.

He said: “At the central bank we have received more than half a trillion naira with the banks we also have goods also received close to half a trillion naira.

“So, what we have done at the central bank is to move more people from different departments into currency processing department so that they can process this cash as quickly as possible.”

He said that of the N3.23 trillion cash in circulation as at September, N2.73 trillion was outside the vault of the banks.

•Govt explains sack of core investors
•Targets 22,000mw

 

Banks holding majority stakes in six electricity distribution companies (DisCos) yesterday got a marching order from the Federal Government to divest within 12 months.

Minister of Power, Abubakar Aliyu, who gave the ultimatum, said the government was monitoring the operations and divestment process of the six DisCos to ensure compliance with the core objectives of restructuring the power firms.

He said the banks have been mandated to find serious investors to sell their 60 per cent equity in the Abuja, Kano, Kaduna, Benin, Ibadan and Port Harcourt DisCos.

Aliyu spoke in Abuja at the 11th edition of the ‘PMB Administration Scorecard Series (2015-2023)’ organised by the Federal Ministry of Information and Culture.

He said the government sacked the previous core investors to make them more responsible, adding that the government was determined to put the DisCos on their feet.

According to him, restructuring of the six Discos included the sacking of the previous core investors due to poor performance and the composition of a new board and management to run them.

The minister said: “For the benefit of the doubt when I say we have restructured the Discos this is just saying it mildly.

“Restructuring means that we have sacked the core investors. We have sacked the management and allowed the lenders to take over.

“Either banks or the Asset Management Corporation of Nigeria (AMCON) hold the franchise.

“So the banks have taken over 60 per cent ownership. We have allowed the banks, the Bureau of Public Enterprises (BPE) and the Central Bank of Nigeria (CBN) to take control.

“The lenders provided the chairmanship of the Discos. The BPE provided part of the management, including the managing directors and then the CBN provided the chief financial officer (CFO) and the auditor.

“So this is the position we are now with the six discos. They are Abuja, Kano, Kaduna, Benin, Ibadan and Port Harcourt. One may ask why only six? What about the rest?

“You know we have 11 of them. Three out of the 11 Discos are performing well, that is two in Lagos and one in Enugu. They are not doing badly.

“Jos Disco was re-concessioned in 2022 and Yola was re-concessioned last year. These two Discos are working very hard to improve. So we have to give time to settle down.

“In a way, we have restructured the whole of the 11 discos in one way or the other. Now, it is to help them since we have made them more responsible.

“We are trying to help them to get on their feet.”

The minister spoke about the Nigeria Distribution Sector Recovery Programme (DISREP).

He said: “It is a loan of $500 million which initially we refused to take for the Discos because of their situation. We don’t trust the way things have been handled.

“So, the loan has been there with the World Bank since last year but we did not take it until when we were able to restructure.

“Even now that Mr. President has approved through the Federal Executive Council, the DISREP, there are some conditions tied to them so that we can remove the risks attached to it. This is the situation.

“I hope and it is not going to be forever because banks are not in the business of providing electricity.

“So we have given them six months to one year to find someone serious to sell their 60 per cent equity to those in the business of electricity. This is the situation now and we are monitoring.”

He said the administration of President Buhari will bequeath 22,000MW capacity to the nation before leaving office next year, adding that Siemens was engaged in the power sector to raise the operational capacity from 7000 MW to 11, 000MW  and 25, 000MW in 2025.

On tariffs, he said electricity is not a cheap commodity the world over.

He said Nigerians can cut costs by being careful about how they manage and use electricity, noting that the government was doing its best to protect lower-income citizens because of the nexus between lack of access to electricity and poverty.

The minister said: “We have service band from A to E. Accordingly, Band A will be provided with 22 hours of service. But they have to pay for it. Electricity is not a cheap commodity the world over.

“The cost of gas to power is being subsidised by the government by more than half to cushion the effects of electricity cost to the end users.

“The government used to fill up the gap. It used to be N600 billion per annum for the shortfall. But through some reviews we have been able to reduce it to N152 billion.

“Even at N152 billion the government pays in N152 billion, they take loans to pay in order to cushion the effect for all of us. And you know the situation of government finances nowadays. The government may not be able to continue doing that. We have to gradually live up to that.

Read Also: ‘Allow DISCOs operate as private companies’

“We have to be more careful about how we use electricity and how we are able to manage the electricity in order to reduce the cost by ourselves by using it when it is necessary. So this is the situation we are in.

“We have done all of this while protecting our lower-income citizens (that do not always receive adequate electricity) by maintaining subsidies for the lower tariff bands while allowing those with adequate power to pay relatively higher prices. Tariff shortfalls have been reduced by over 80 per cent and we are on the path to having a sustainable market that can pay for itself.

“We have put a focus on electricity poverty. It is proven through various studies that there is a strong nexus between lack of electricity access and poverty.

“Prior to this administration, there was no coherent policy on Rural Electrification with key provisions of the Electric Power Sector Reform Act to electrify rural populations largely ignored. “This administration established the Rural Electrification Fund that provides up to 70% grants for rural mini-grid and solar home systems. Currently REF has electrified more than 300,000 citizens in its short existence. The Ministry is working with REA to expand the Rural Electrification Fund to create more opportunities for rural access.”

According to him, this administration will bequeath to Nigerians 4,000MW of additional generating capacity. It will complete and commission the 700MW Zungeru Hydro Power Plant in the first quarter of 2023.

“We will also see to the operationalization of the 240MW Afam III and 300MW Okpai Phase II to mention a few. We will set the country on a stable path for 10,000MW of supplied energy (today we are at 8,000MW with 5,000MW on-grid and 3,000MW+ of industrial captive off-grid) and we will leave an installed capacity of almost 22,000MW.

“We also have robust programmes ongoing with facilities and investments secured of over $3 billion to eliminate the large gap between our transmission capacity and supplied energy.

“We have repositioned the Siemens Presidential Power Initiative (PPI) and after a slow start, we have begun to take delivery of critical equipment. You may recall that accelerated orders were placed for 10 power transformers and 10 mobile substations, with a delivery schedule beginning Sep’22. So far, six of the 10 power transformers have already arrived on the shores of Nigeria and we have started installation in various locations while the remaining four are expected in Dec’22 and January 2023. The mobile substations are expected from January 2023 through to April 2023.

“As far as I am concerned, it is a government-to-government collaboration between the Nigerian Government and the German Government through President Muhammadu Buhari and the previous German Chancellor, Angerla Merkel, where Merkel agreed to help in giving us a loan under concessionary terms to bring Siemens to implement the rehabilitation of our infrastructure in three phases. Phase one is to raise the operational capacity from 7000 MW to 11, 000MW to 25, 000MW.

“Phase I is supposed to be a quick one because already the TCN capacity is not matching or rather I would say the discos capacity is not matching with the TCN capacity. There are some interfaces, and infrastructure problems. You may have the capacity of TCN up to 8000MW but there is no evacuation due to some interface problem. So that is what Phase One is set out to do, to quickly take the level to where it is balanced.

“And then Phase Two is to further expand to 11, 000MW, and the Phase Three to take the whole value chain from generation, transmission to distribution through up to 2025 to 25, 000MW. So and the loan is around two million Euros.”

He said the government completed a total of 105 power transformer projects between 2015 to 2022, adding a capacity of 6,216MVA to the national grid.

He listed some of the completed power transformer/substation projects including the 150MVA 330/132kV Interbus Power Transformer at Ughelli, Delta IV transmission substation and the 150MVA 330/132kV power transformer at Ayade Transmission Substation

Others are the 2x150MVA 330/132/33kV Substation at Lafia, Nasarawa State, and the 2x60MVA 132/33kV Dawaki/Gwarinpa Substation which was recently completed in November 2022 under the Abuja Feeding Scheme.

The projects also included the 2x60MVA 132/33kV Gagarawa Substation, 2x60MVA 132/33kV Substation at Adiabor, 2x30MVA 132/33kV Yelwa Yauri the1x30MVA 132/33kV Ilashe Substation and the 1x40MVA 132/33kV Substation at Bichi, Kano State among others.

According to the minister, a number of substations and bay extensions were nearing completion and were expected to be inaugurated by the first and second quarters of 2023.

He said a total of 900km of reconductoring and construction of new transmission lines were completed during the period 2015 – 2022.

Some of the key lines, according to him, included reconductoring of the 140km 132kV Birnin- Kebbi to Sokoto transmission line (April 2021) and the completion of 330kv Aloji – Ikot Ekpene transmission line.

Others were the 132kV Ihovbor – Okada transmission line, completion of 330kv Gombe – Damaturu transmission line, among others.

The minister said some transmission line projects nearing completion and expected to be inaugurated by Q1  and Q2 of 2023 included the Kaduna – Jos Double Circuit Transmission Line and  Benin-Ajaokuta 330kV Single Circuit.

He pointed out that the ongoing $2 billion electricity grid maintenance, expansion and rehabilitation programme across the country is estimated to create 45,000 direct and indirect jobs.

He said in delivering the projects, the federal government leveraged the support of the various State Governors to resolve Right of Way (ROW) issues.

He gave the example of the ROW issue recently resolved in Kumbotso-Dan Agundi in Kano which, according to him, lingered for more than 10 years.

 

 

With Dr. Iyorchia Ayu in office as National Chairman of the Peoples Democratic Party (PDP), aggrieved governors under the aegis of Group of Five (G-5) and their allies will not give their support to the party’s Presidential Campaign Council (PCC), Rivers State Governor Nyesom Wike said yesterday.

The aggrieved PDP members are demanding the exit of Ayu to pave the way for the South to fill his position. They hinged their demand on the fact that the party’s presidential standard bearer, Atiku Abubakar, and Ayu come from the North.

The Rivers helmsman spoke when his political associates and Rivers’ elders, led by the Chairman, Rivers Elders Council (REC), Chief Ferdinand Alabraba, visited him at his private residence in Rumueprikom .

They were in the governor’s country home to felicitate with him on his 55th birthday.

A statement by his Special Assistant, Media, Kelvin Ebiri, quoted the governor as saying that he has no personal problem with Atiku, but that for peace to return to the party, the chairmanship position must be given to the South before the 2023 election.

He said: “I have no problem with the presidential candidate. All I am saying is what is the interest of Rivers people?  What is the interest of the Southsouth, and the South?”

Wike recalled that about a year ago, Rivers elders urged him to contest the office of the President of Nigeria and he heeded the advice and almost clinched the PDP presidential ticket if not for the manipulation of the process.

The statement reads: “I don’t regret I ran for presidency.  In the name of God, I am happy to make Rivers State proud. I am happy as far I am concerned. If they had allowed it to be what it is supposed to be, I would have won the election. But it’s okay. It has happened.

“People said because I lost election, it doesn’t matter. I didn’t lose election. This is my first time of trying to run for the president of Nigeria and we made impact. If it is easy, let them go ahead. Are they not the ones begging?”

The governor said some of his Ikwerre brothers like, Sir Celestine Omehia and former Deputy Speaker, House of Representatives, Austin Opara, were begrudging him because of his insistence that it would be morally offensive for an Ikwerre man to succeed him or even picked as PDP candidate for Rivers East senatorial district.

He said: “I called Austin (Opara), he sat here and I said look my brother leave it, it will not work. I don’t want to cause crisis in our system. Amaechi finished eight years as governor, I’m going to finish eight years as governor too.

“It will be difficult to sell another Ikwerre person as governor for another eight years. Omehia said he wants to go to the Senate, I said leave it. Ikwerre has gone; Ogu has gone, leave Etche to go.

“You people said I should go (to Senate), I said I won’t.  Allwell (Onyesoh) could not have stopped me. Yes, today, we are majority, you don’t know what tomorrow will be. I never did anything to undermine anybody. We must understand that.”

Wike further described as sheer hypocrisy the allegation that he foisted the Rivers State PDP governorship candidate, Sir Siminalaye Fubara on the party.

He said the choice of Fubara was a collective decision reached after those who had indicated interest to succeed him failed to reach a consensus to produce one candidate.

“When O.C.J. Okocha comes back, we will publish the agreement signed by all”, he said, urging the PDP leaders to remain steadfast and focused on the next election.

He said the leadership provided by his administration since 2015 would help the party to victory next year.

Wike said: “We will win. I am not running election, but I’m running an election. My name is not on the ballot, but I’m running an election. You’ll hear what is going to happen, don’t panic. It is something God has given to us in our (hand) palm.”

Alabraba commended Wike for contesting the PDP presidential primaries with an intense campaign that had left many astounded till date.

Read Also: Atiku greets Wike at 55 despite crisis

The Elder’s Council chair said: “Since after the primaries and all the matters arising, many people have been wondering where are we going, what are we doing?  But, I will like to assure you that the belief we have in you and your type of leadership, whenever you decide to say where we are going, that is where all of us will go.

“We are not in a hurry. We will deliver Fubara, as our governor. We will deliver all the members of House of Representatives, all the senators, all the Assembly men.

“But the other one we are waiting for whenever you decide. We will wait for you. Whatever you decide, that is where all of us will go. Your Excellency, we thank God that you have the ability and capacity to carry along a number of colleagues today known as G-5.

“Those are the most popular governors in this country today.  And we are not pressurising you. Whatever the group comes up with, whichever decision you take, be rest assured that your fellowship will key into it and support you to the last.”

 

Why Atiku lost Southeast’s support, by Ohanaeze chieftain

NATIONAL Vice President of Ohaneze Ndigbo, Chief Damian Okeke-Ogene, attributed the loss of support for Atiku’s presidential ambition to the role played by the PDP in the dumping of power shift.

Okeke-Ogene noted that the one-time vice president had benefitted from the application of zoning in the PDP.

He said Atiku would have been the greatest hero of if he had joined those insisting that the Southeast should produce President Muhammadu Buhari’s successor.

In a chat with The Nation, the Ohanaeze chief said the PDP flag bearer would have seen the forthcoming election as a reward time for the sacrifices given to him during the last election.

He said: “If conscience is anything to go by, the two major political parties couldn’t have fielded candidates from any other zone other than Southeast.

“What Obasanjo (former president) and others are doing today is what we had expected from Atiku who happens to be our in-law. That’s why it’s not good to vote according to sentiments.

“Atiku would have known that the entire Southeast sacrificed their votes and interest for him and see this election as a payback time. He wouldn’t have engineered and funded the no-zoning campaign because we voted for him based on zoning.

“Atiku would have been the greatest hero of our times if he had been in the fore-front of championing it’s turn of the Southeast. But if Atiku fails this election, he’ll go to the grave as unrepentant person, sorry to use that word, but it’s very unfortunate.”