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  • Jonathan’s wife, banks trade blame over funds trapped in 10 accounts

    Jonathan’s wife, banks trade blame over funds trapped in 10 accounts

    Former First Lady Patience Jonathan, some firms and groups linked to her and their bankers are engaged in a blame game over their inability to retrieve huge sums trapped in the banks in the wake of a freezing order obtained by the Economic and Financial Crimes Commission (EFCC).

    Mrs. Jonathan, the firms and groups accused the banks – First Bank, Skye Bank and Diamond Bank – of withholding their funds despite an order of court vacating the freezing order. But the banks argued that the way the ex-First Lady and others sought to retrieve the trapped funds violated existing financial regulations.

    The firms and groups include: Incorporated Trustees of Ariwabai Aruera Reachout Foundation, Fagmat Oil and Gas Nigeria Limited, Finchley Top Homes Limited, AM PM Global Network Limited and Magel Resort Limited.

    Others are: Incorporated Trustees of Women for Change and Development Initiative Nigeria, Seagate Property Development Investment Company, Globus Integrated Services and Pluto Property and Investment Company Limited.

    Although the total amount involved could not be immediately ascertained at the weekend, some documents filed before the Federal High Court, Abuja revealed the distribution of the accounts.

    Mrs. Jonathan is said to own the account marked:  2022646664 with First Bank, with a balance of about $3.6million ($3,626, 273.71). Globus Integrated maintains account: 210002269 domiciled in Skye Bank.

    Incorporated Trustees of Ariwabai Aruera Reachout Foundation, Fagmat Oil and Gas Nigeria Limited, Finchley Top Homes Limited, AM PM Global Network Limited and Magel Resort Limited are said to maintain accounts: 0024351569, 0026838491, 0019213687, 0026718889, 0024351590 with Diamond Bank.

    Also, the Incorporated Trustees of Women for Change and Development Initiative Nigeria is said to maintain three accounts: 0035481691, 0025879578 and 0019213632 with Diamond Bank.

    Mrs. Jonathan, the firms and groups are contending that the banks’ alleged refusal to release the money amounted to flouting the December 5, 2017 order of a Federal High Court in Abuja, vacating the freezing order got by the EFCC on May 30, 2017.

    They subsequently initiated contempt proceedings against the banks’ heads, who they accused of disobeying the December 5, 2017 order by Justice Binta Nyako of the Federal High Court, Abuja, which was to the effect that the freezing order obtained by the EFCC on the affected accounts has lapsed.

    Mrs. Jonathan, the firms and groups stated, in a supporting affidavit filed with the committal application, that they attempted to make withdrawals from the accounts after the December 5, 2017 order, but were denied access to the accounts by the banks.

    They added: “The respondents/contemnors all refused to obey the court order and thus, bluntly refused to pay the applicants or allow them operate their accounts. Despite the service of the orders and Forms 48 and 49 of this court on the respondents/contemnors, they have bluntly refused to obey the orders of this honourable court.”

    They prayed the court to commit the bank chiefs to prison for “the persistent and flagrant disobedience of the order of this honourable court made on the 5th of December 2017 in suit No: FHC/CS/821/2016 between Incorporated Trustees of Ariwabai Aruera Reachout Foundation and 10 others vs. EFCC.”

    Dr. Adesola Adeduntan (described in the application for committal as the Group managing Director/Chief Executive Officer, First Bank); Mr. Tokunbo Abiru (Chief Executive Officer, Skye Bank) and Uzoma Dozie (Managing Director/Chief Executive Officer, Diamond Bank) have denied any wrong doing.

    The bank chiefs claimed that their banks complied with the December 5, 2017 ruling unfreezing the accounts. They have also challenged the competence of the contempt proceedings.

    In a counter-motion, Adeduntan challenged the competence of contempt proceedings on grounds of incompetent service. He argued that no processes in relation the proceedings were served on him personally as required by law.

    The First Bank CEO denied flouting any order of the court. He stated that his bank has complied with the December 5, 2017 order and has lifted the restriction on Mrs Jonathan’s account with the bank.

    In a supporting affidavit, First Bank stated that “upon confirming the authenticity of the order of court and advice from its legal department, the bank forthwith complied with the order of court by defreezing the account on 16th December 2017.

    “This was communicated to 11th judgment creditor/respondent (Mrs. Jonathan) vide a letter dated 18th December 2017. The bank also informed the 11th judgment creditor/respondent that its management had taken a decision to close the account with it and therefore requested her to provide the details of an account into which the balance in the said account should be transferred.

    “Upon receipt of the letter, the 11th judgment creditor/respondent and her counsel, Granville Abibo (SAN), vide letter dated 20th December 2017 respectively informed the bank that the 11tth judgment creditor/respondent could not provide detail of any account into which the balance in her defreezed account with the bank should be transferred and thus demanded that she should be paid in cash.

    “The bank, having complied with the order of court to unfreeze the account, no longer owe the 11th judgment creditor/respondent any obligation as regard assisting her to violate the provisions of the Money Laundering Laws of Nigeria and normal banking practice of delivering foreign currency in large quantum in cash.

    “In response to letters dated 20th December 2017 the bank, vide letters dated 21st December 2017 to the 11th judgment creditor/respondent and her counsel respectively, informed them of the bank’s inability to accede to their request for cash payment, but advised that a bank cheque will be issued in the name of the 11th judgment creditor/respondent for the balance in the unfreezed account if she fails to provide detail of account into which the said balance should be transferred on or before 4tth of January 2018.

    “In response, the 11tth judgment creditor/respondent and her counsel respectively informed the bank that the 11tth judgment creditor/respondent does not have any account in her name where monies can be transferred and would prefer cash to be paid to her as the lodgements made into that account were done in cash.

    “The 11th judgment creditor/respondent further wrote the bank on 277th December 2017 supplying three separate accounts of her counsel, telling the bank that the said sum be paid into those three named accounts of solicitors who are third parties and the balance paid to her in cash.

    “In line with the bank’s letter of 21th December 2017, upon the failure of the 11th judgment creditor/respondent and her counsel to provide any account detail in her name to transfer the funds in her unfreezed account, the bank on 17th January 2018 issued, in her name, a bank cheque no: 014602 in the sum of $3,626,273.71 representing the total balance in her account with the bank, less applicable charges.

    “Further to the above, the bank also informed the 11th judgment creditor/respondent and her counsel vide letters dated 17th January 2018 to visit a designated office of the bank in Abuja to pick up the cheque. The 11th judgment creditor/respondent refused to collect the letter, but her counsel received his own copy,” the bank said.

    Meanwhile, Mrs. Jonathan, the firms and groups have taken steps to frustrate a renewed move by the EFCC to have the accounts frozen again. They have challenged the competence a fresh motion filed by the EFCC to that effect.

    They urged the court to strike it out for not only being incompetent, but constitution an abuse of court process. They noted that the EFCC has among others, filed similar application before the Lagos division of the Federal High Court.

    When the two cases marked: FHC/ABJ/CS/821/2016 and FHC/ABJ/CS/1207/2017 came up last Friday, the court could not take any of the pending application because the EFCC was not represented.

    Justice Nyako noted that the EFCC was served with a hearing notice just the previous day, which the judge said was insufficient.

    Following agreement by lawyers in the cases, including Mike Ozekhome, SAN, (for Mrs. Jonathan), Justice Nyako adjourned further proceedings to April 11.

  • Jonathan’s wife begs court to unfreeze accounts with N3.5b, $5.8m

    Jonathan’s wife begs court to unfreeze accounts with N3.5b, $5.8m

    •Judge to hear motion Nov 23

    Former President Goodluck Jonathan’s wife, Patience, has asked a Federal High Court to lift the temporary freeze issued on 16 accounts allegedly held in banks by her and some firms linked to her.

    The accounts, said to contain $5.8 million and N3.5 billion, are domicile in six banks.

    Mrs. Jonathan’s request is contained in a motion she filed before the court, and in which she faulted the method adopted by the Economic and Financial Crimes Commission (EFCC) in obtaining two ex-parte interim freezing orders on the accounts.

    She contended that the freezing orders have lapsed and should be vacated, having been first made on May 30 this year and renewed on October 10.

    Mrs. Jonathan said the accounts were maintained by her, the Incorporated Trustees of her foundation -Ariwabai Aruera Reachout Foundation – and nine other companies in which she has interest.

    She argued that the orders of interim forfeiture made on May 30, 2017, including a subsequent one issued on October 10, 2017, have become spent and could no longer be extended, because the original order was obtained through an improper use of court process by the EFCC.

    She stated in the motion filed by her lawyer Mike Ozekhome (SAN) that the Federal High Court in Abuja, on May 30, 2017 granted an ex-parte order in favour of the Federal Government against all the accounts own and operated by her and the companies

    She said the same Federal Government later went before the Lagos division of the court, presided over by Justice C.M.A Olatoregun to obtain similar order on October 10 in respect of accounts held by her, Finchley Top Homes Limited and Ariwabai Aruera Reachout Foundation.

    Mrs. Jonathan added that prior to the grant of the ex-parte motion by the court in Abuja, the Federal Government had filed a similar application before Justice Olatoregun of Lagos division but failed to disclose the fact that it had obtained same reliefs in Lagos.

    She said the owners of the money were never served with the interim order and that they became aware of it during a hearing of a petition she lodged at the National Assembly.

    When the case was called yesterday before Justice Binta Nyako, Ozekhome urged the court to first here his client’s motion before the one filed by the EFCC for the extension of the orders earlier made by the court.

    Lawyer to the EFCC Richard Dauda insisted that his application should take precedence.

    Justice Nyako, however, adjourned to November 23.

  • Court stops banks from operating accounts without BVN

    Court stops banks from operating accounts without BVN

    •Directs them to disclose accounts’ owners
    •Funds in accounts to be forfeited if unclaimed in 14 days

    Bank account owners who are yet to have a Bank Verification Number (BVN) run the risk of forfeiting their money to the federal government within the next two weeks unless they can justify their ownership of such accounts.

    A Federal High Court in Abuja has granted a temporary forfeiture order on such accounts.

    It also restrained commercial banks from operating such accounts for the meantime and directed them to disclose the owners of the accounts and the status of the funds in them.

    Justice Nnamdi Dimgba handed down the order on October 17  while ruling on an ex-parte motion filed by the Federal Government and the Attorney General of the Federation (AGF).

    Affected by the orders are Access Bank, Citi Bank, Diamond Bank, Ecobank, Fidelity Bank, First Bank, First City Monument Bank, Guaranty Trust Bank, Heritage Bank, Keystone Bank, Skye Bank, Stanbic IBTC, Standard Chartered, Sterling Bank, Union Bank, Unity Bank, United Bank for Africa, Wema Bank and Zenith Bank.

    The ex-parte motion – FHC/ABJ/CS/911/2017- was filed on September 28 this year and argued by the plaintiffs’ lawyer, A. D. Tyoden.

    It was brought pursuant to the Central Bank of Nigeria’s Know Your Customers Guidelines and Section 3 of the Money Laundering (Prohibition) Act of 2011 as amended.

    The enrolled orders from the ruling reads: “That the 1st – 19th defendant banks shall disclose: (a) the names of the accounts as operated; (b) account number(s); (c) outstanding balances (d) domiciliary accounts and (e) the branch/location where the accounts are domiciled of all accounts without BVN.

    “That the 1st – 19th defendant banks to disclose any investments made with funds from these accounts without BVN in any products including fixed/term deposits and their liquidation and interest incurred, bank acceptances, commercial Papers and any other relevant information related to the transaction made on the accounts.

    “That an order is hereby made freezing the said accounts by stopping all outward payments, operations or transactions (including any bill of exchange) in respect of the accounts pending the hearing and determination of the substantive application.

    “That an order is hereby made directing the 1st to 19th defendant banks to disclose any investments made with funds from these accounts without BVN in any products including fixed/term deposits and their liquidation and interest incurred, bank acceptances, commercial papers and any other relevant information related to the transaction made on the accounts.

    “That an interim order is hereby made directing the Central Bank of Nigeria and the Nigeria Interbank Settlement Systems to validate the information contained in the affidavit of compliance/disclosure filed by the respective 19 banks within seven days from the date of service on the Central Bank and NIBSS.

    “That an interim order is hereby made appointing a Bank Examiner from the Central Bank of Nigeria to examine the books of any bank that fails to comply with the order of the honourable court to file affidavit of disclosure.

    “That an interim order is hereby made granting leave to the applicants or any officer authorised by them to advertise the accounts without BVN disclosed by the bank in a widely circulated national newspaper as notice to any person or body corporate or financial institution who may have any interest in any of the said accounts to claim ownership of same within 14 days of the publication of the order and show cause why the proceeds in the account should not be permanently forfeited to the Federal Government of Nigeria.”

    Further hearing in the case was fixed for November 16.

    At the last count, the Central Bank (CBN) had issued 30,511,506 BVNs.

    The Nigeria Inter-Bank Settlement System (NIBSS) says  a total of  45.85 million bank accounts remain unlinked although  when compared with the active accounts the number stood at  15.72 million unlinked to BVN as at  February 2017.

    Even before the court order the CBN had issued a memo warning the banks and NIBSS, Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) to ensure proper capturing of the BVN data and validate same before linkage with customers’ accounts; ensure all operated accounts are linked with the signatories’ BVN; and ensure customer’s names on the BVN database are the same in all of his/her accounts, across the banking industry.

    The CBN Director of Banking and Payment System, Mr. Dipo Fatokun, who signed the memo asked the banks to report confirmed fraudulent individuals’ BVNs to NIBSS for update of the watch-list database; report the BVN of deceased customers to NIBSS for update on the BVN database; render returns to NIBSS for enlisting individuals involved in confirmed fraudulent activities, with the report signed by the chief audit executives.

    The apex bank requires NIBSS to ensure BVN data are stored within the shores of Nigeria and shall not be routed across borders without the consent of the CBN while users of the BVN information shall establish adequate security procedures to ensure the safety and security of its information and those of its clients, which shall include physical, logical, network and enterprise security.

    The BVN was launched on February 14 2014 for the purpose of registering all customers in the financial system using biometric technology.

    Biometric technology involves the process of recording a person’s unique physical traits such as fingerprints and facial features.

    Each registered person is then given a BVN number that is unique to him.

    The objective according to the CBN is to protect bank customers, reduce fraud and further strengthen the Nigerian banking system.

     

  • Exposed: $151m, N8b in fictitious bank accounts

    Exposed: $151m, N8b in fictitious bank accounts

    Suspects give up cash to Fed Govt

    Whistle-blowing is yielding bountiful fruits, with the Federal Government recovering about  $136,676,600.51 from a fictitious account. The unnamed owner of the account is suspected to be a public officer.

    The suspect is believed to be a front for laundering slush funds, The Nation learnt yesterday.

    Two others voluntarily refunded $15million, N7billion and N1billion after some whistle-blowers exposed the huge deposits in their accounts.

    The deposits are suspected to be proceeds of crime.

    According to a source, who pleaded not to be named, the recovery followed information given to the Office of the Attorney-General of the Federation( OAGF).

    The source said: “The government’s policy on whistle-blowing has recorded some achievements. For instance, the Office of the Attorney-General of the Federation was alerted to about $136,676,600.51in a fictitious account in a bank. When the government moved in, the bearer of the fake account could not explain the source of the cash.

    “We are suspecting that the purported owner is a public officer who might have either been part of a syndicate or serving as a front to launder funds.

    “But the office of the AGF has all the details of those involved in keeping these suspicious funds.

    “There was the case of another person who had $15million and N7billion in his account. These funds were suspected to be proceeds of crime. Again, some whistle-blowers who knew about these  huge deposits alerted the government.

    “The third person could not explain how he came about N1billion.

    “Interestingly, all the suspects willingly gave up these slush funds.”

    Asked of what will become of the three suspects, the source added: “Only the AGF can clarify the next step in line with the law and the policy on whistle-blowing.”

    A statement by the Minister of Information and Culture, Alhaji Lai Mohammed, said the “whistle-blower policy has started yielding fruit as it has so far led to the recovery of US$151 million and N8billion in looted funds”.

    The minister said: “The looted funds, which do not include the $9.2 million in cash allegedly owned by a former Group Managing Director of the NNPC (which was also a dividend of the whistle-blower policy), were recovered from just three sources through whistle-blowers who gave actionable information to the office of the Minister of Justice and Attorney-General of the Federation.

    “The biggest amount of $136,676,600.51 was recovered from an account in a commercial bank, where the money was kept under an apparently fake account name, followed by N7billion  and $15million from another person and  N1billion  from yet another.

    ‘’When we told Nigerians that there was a primitive and mindless looting of the national treasury under the last Administration, some people called us liars.

    “Well, the whistle-blower policy is barely two months old and Nigerians have started feeling its impact, seeing how a few people squirreled away public funds.

    “It is doubtful if any economy in the world will not feel the impact of such mind-boggling looting of the treasury as was experienced in Nigeria.

    ‘’Yet whatever has been recovered so far, including the $9.8million by the EFCC, is just a tip of the iceberg.”

    Mohammed urged Nigerians with information on looted funds to continue to provide the authorities with such information.

    He said  confidentiality will be maintained with regards to the source of the information.

    The minister also reminded Nigerians of the financial reward aspect of the policy.

    ‘’If there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided, the whistle blower may be entitled to anywhere between 2.5% (Minimum) and 5.0% (Maximum) of the total amount recovered,’’ Mohammed said.

  • NAICOM approves Guinea’s 2015 accounts

    NAICOM approves Guinea’s 2015 accounts

    Guinea Insurance Plc has got the nod of the regulatory body, the National Insurance Commission (NAICOM) on its 2015 annual financial reports and accounts.

    This was made known in a statement in Lagos by Guinea’s Team Lead, Corporate Communications, Ufot Hanson.

    According to the statement, the company will soon host the 58th edition of the company’s Annual General Meeting (AGM), following the approval.

    It stated that in spite of the daunting challenges in the operating environment, it has remained focused and true to its ideals of becoming an insurer of first choice.

    It reads: “We are alive to our responsibilities of consolidating and strategically growing market share through decisive long-term investments and customer engagement initiatives.

    “We will determinedly build capacity, explore opportunities within the industry and strategically set our internal processes on the path of returning to profitability.”

    The company further reassured stakeholders that the newly appointed crop of eminent Nigerians and professionals as members of the Board of Directors will set a growth agenda aimed at positioning the company on a higher pedestal to further propel confidence, equitable service delivery and offer gratifying returns on investments to stakeholders.

  • Banks scramble for BDCs’ accounts

    Banks scramble for BDCs’ accounts

    Banks have begun intensive scramble for Bureaux De Change (BDCs) accounts after their efforts to stop the operators from accessing the Diaspora-related foreign exchange (Forex) failed at the weekend, it was learnt.

    Sterling Bank Plc at the weekend announced the launch of the Sterling Diaspora Services for Nigerians based abroad.

    The bank said it was discussing with various Nigerian communities abroad for business collaboration in the area of customer acquisition, management and retention.

    The mid-tier lender said Nigerians living abroad with local and direct ties in Nigeria would be encouraged to embrace the services. “We will also ensure that businesses owned by Nigerians and Associations abroad make use of the services,” it said in a statement obtained by our correspondent.

    It was also learnt that more lenders will in the coming weeks, strengthen their international operations and marketing networks, to ensure that more funds from the Diaspora come into their coffers.

    The banks last Friday, after nearly three weeks resistance, began implementation of the Central Bank of Nigeria (CBN) directive to sell $30,000 weekly to BDCs. Four bank sold over $10.5 million to 350 BDCs.

    First Bank of Nigeria Limited, Ecobank Nigeria Limited, Fidelity Bank Plc, and United Bank for Africa Plc, sold forex to BDCs that met set requirements and were cleared by the compliance department of the banks as fully compliant with the Know Your Customer requirement.

    More BDCs are expected to benefit from the Diaspora-related forex funds estimated at $21 billion annually.

    In a continued effort to ensure stability of the exchange rate and to encourage participation of all critical stakeholders in the foreign exchange market, the CBN had directed through a circular to authorized dealers that all agents to approved International Money Transfer Operators (IMTOs) sell foreign currency accruing from inward money remittances to licensed BDCs.

    “The process started with two banks: First Bank of Nigeria Limited and Ecobank Nigeria Limited, but now, several other banks are even calling our members to come and open accounts with them. The banks are pleading, telling them, I am on board, please come and open accounts.  I am sure that in the next one or two weeks, all banks will be involved in selling to our members and all the BDCs will have access to funds. And before you know it, we will begin to see stability in the market,” Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) said in an exclusive interview at the weekend.

    He said the international money transfer fund is not CBN’s money. “It is not from the foreign reserves of the CBN. This is money that Nigerians in the Diaspora are sending into the economy. Before, this money came through unofficial means, some sending through hands, and at the end of the day, the beneficiary will not even get the money. Some use black market operators,” he said.

    Gwdabe said there are many Nigerians in the Diaspora who want to send their money home and the banks see the opportunity in the transactions.

    “They have seen that the CBN circular is sacrosanct. So, you either belong, or you seem to be committing and infraction one way or the other. So, to avoid that, you definitely have to follow. The circular has been there since 2014, it is only enforcement that is taking place now. The BDC sub-sector is big in Nigeria. Imagine if you are doing $30,000 weekly, for 3,000 BDCs, you are talking about almost $100 million, and multiplied by say N300 to dollar exchange rate, that is about N30 billion weekly and monthly that is over N120 billion, transactions in the BDCs sector. No economy can ignore that,” he said.

    The ABCON chief said the banks have also began international marketing to ensure that more funds from the Diaspora come to them.

    Speaking further on why the Diaspora funds are critical, he said the inflow will make the naira stronger. “First, it will make the naira sovereign. The sovereignty of any currency is critical to the sovereignty of the country. American is a world power not because of its ammunition but because every part of the world you go, dollar is like Coca Cola. That is what makes America strong. American has been an export-driven economy; they have their technology and transparent leadership. They have educated working population, and good medical care. Mortality rate low, accident is low, security is there. If we make naira a strong medium of exchange, most especially, in the West African sub region, it will help us to stamp the authority of the naira, not only in Nigeria, but in neighboring African countries,” he said.

    Gwadabe said BDCs are not parallel market operators. “There are over one million parallel market operators in this country and they have been here even before the coming of the CBN. They have been here even before the CBN licencing the BDCs in Nigeria. There is a big difference between a parallel market operator and a BDC operator,” he said.

    According to him, BDCs all over the world are development agents but it is only in Nigeria that the operators are seen as black sheep in the economy. “In India, the BDCs generate over $30 billion from Diaspora remittances. In United Arab Emirates, the entire needs of banks are met by BDCs. The working of the Lebanon economy is highly dependent on the activities of BDCs in that country. So, you can see the roles of BDCs have played. In Nigeria, the BDCs have been playing a very big bridge for the regulators in terms of ensuring there is liquidity,” he said.

  • Fayose: I have N382m in frozen bank accounts

    Fayose: I have N382m in frozen bank accounts

    ekiti State Governor Ayo Fayose has claimed that he has N382 million in his two bank accounts frozen by the Economic and Financial Crimes Commission (EFCC) for being allegedly used for money laundering.

    Fayose alleged that the freezing of his accounts with Zenith Bank by the EFCC was aimed at wearing him out and silencing him as the voice of the opposition. He was confident that he would overcome the battle.

    He challenged the EFCC to make public the statement it extracted from the former National Security Adviser (NSA), Col. Sambo Dasuki (retd.) as well as from his (Fayose’s) personal account details to allow the public know their contents.

    Publishing Dasuki’s statement, he said, would reveal whether Dasuki truly wired funds to the former Minister of State (Defence), Musiliu Obanikoro or any other person for onward transmission to him (Fayose).

    A statement yesterday by his Chief Press Secretary, Idowu Adelusi, said Fayose spoke at the weekend during an interview programme on a radio station based in Ibadan, the Oyo State capital, FRESH FM.

    He challenged the EFCC to carry out what he called “responsible investigation” rather than engaging in “mind games” and “media trial through their commissioned newspapers” to tarnish his image.

    The governor said the alleged onslaught against him was also intended to set the public against him, saying: “Some failed Ekiti politicians now resume every day at EFCC office to concoct stories” to run him down.

    Fayose claimed that contrary to what the general public is made to believe, the total amount in his two accounts frozen is N382 million made up of N300 million in his fixed deposit account and N82 million in his other account.

  • Chinese Yuan accounts for 6.7% of $27.34b forex reserves

    Chinese Yuan constitutes only 6.7 per cent of Nigeria’s $27.34 billion foreign exchange (forex) reserves, data from the Central Bank of Nigeria (CBN) has shown.

    The figure indicted that the US dollar constitutes 76.6 per cent of the total, having fell from its level of $22.59 billion in September last year to $21.67 billion in December.

    Other currencies in the basket and their shares include Saudi Riyal (SDR) worth $2.32 billion; (8.2 per cent), Euro worth $1.69 billion (six per cent), and British Pound Sterling worth $688.18 million (2.4 per cent).

    The report titled: Currency Composition of Foreign Exchange Reserves indicated that forex inflows to the economy in December last year stood at $20.2 billion as against $27.3 billion recorded in September, representing a decrease of 25.76 per cent.

    While in the corresponding quarter of 2014, the recorded inflow was $37.01 billion, indicating a major decrease of 45.2 per cent. On the other hand, total outflows in the period under review amounted to $8.61 billion. This represents a decrease of 21.22 and 41.90 per cent in comparison with the levels recorded in the preceding quarter and corresponding quarter of 2014, respectively.

    Consequently, a net out-flow of $11.67 billion was recorded in December last year as against $16.39 billion in September.

    Foreign Direct Investment (FDI) inflows declined to $501.83 million in December last year from $1.21 billion in September. Estimated portfolio investment inflows (liabilities), however, increased significantly from a reverse investment level of $387.32 million in September to $1.15 billion in December.

    The aggregate supply of forex for visible and invisible trade during the period under review stood at $8.48 billion. This represents a decrease of 18.3 and 55.5 per cent in comparison with the levels recorded in the preceding quarter and corresponding quarter of 2014, respectively.

    The total amount utilised in December last year, consists of $5.04 billion and $3.45 billion for visible and invisible trades, representing 59.4 and 40.6 per cent, respectively.

    Analysis of forex utilisation by sectors revealed that $5.03 billion was spent on the importation of various items into the country in December representing 59.4 per cent of the total foreign exchange utilised during the period. This also represents a decrease of 8.3 per cent and 44.9 per cent in comparison with the levels recorded in the preceding quarter and corresponding quarter of 2014, respectively.

  • Sokoto uncovers N1.5b in 100 accounts

    Sokoto State government said yesterday that it uncovered N1.5 billion in its 100 redundant accounts in commercial banks.

    The development followed the introduction two weeks ago of the Treasury Single Accounting (TSA) system.

    Commissioner for Finance Umar Sa’idu, who spoke in Sokoto at the weekend while giving an update on the system implementation, said the government was determined to trace and close down dormant accounts.

    He said the introduction of the TSA prompted improvement in the reconciliation of public finance figures between the government and commercial banks.

    Sa’idu noted that the system reduced the risk of errors in reconciliation processes and enhanced timeliness and quality of fiscal figures.

    He said TSA enabled the government to monitor public cash balances and ensure higher quality cash analysis from the accounts hitherto operated by the government and its agencies.

    According to the commissioner, analyses were undertaken at intervals.

    Sa’idu said the benefit of the accounting system will be felt when the implementation of the budget starts.

    “The document is undergoing legislative action at the House of Assembly.”

    Governor Aminu Waziri Tambuwal has approved the redeployment and posting of permanent secretaries and directors-general.

    A statement by his spokesman, Malam Imam Imam, said 23 permanent secretaries were redeployed and 11 directors-general were posted to departments and agencies.

  • Reps to CBN: disclose interest on foreign reserve accounts

    Reps to CBN: disclose interest on foreign reserve accounts

    The House of Representatives has demanded to know how the nation’s foreign reserves accounts are managed by the Central Bank of Nigeria (CBN).

    The lawmakers, who were particular about the interests accruing to the funds in the foreign reserve accounts, are not happy that the reserves are managed by foreigners.

    The lawmakers directed the CBN to declare, without delay, the particulars of the accounts in which foreign reserves of the federation are held and any interest accruable to the foreign reserve accounts held on behalf of the federation in the last four years and thereafter periodically.

    The lawmakers urged the CBN to report the criteria for engaging any and all foreign managers of the foreign reserves account of the federation to ensure transparency.

    This is in addition to annual reports of performance and continued compliance of the managers with any set guidelines issued by the CBN for the engagement of the managers.

    The decision of the lawmakers followed the adoption of a motion by Abudussamad Dasuki  (APC, Sokoto), who noted that the CBN maintains several foreign reserve accounts on behalf of the federation containing funds in foreign currencies.

    He said the  foreign currencies are held in financial institutions before they are shared during the monthly Federation Accounts Allocation Committee  (FAAC).

    He said: “It is a fact that reasonable interests accrue from the surplus of funds held by the CBN on behalf of the federation which have not been monetised into naira and received by the federation from the CBN from the foreign bank accounts.

    “It is also a fact that foreign managers are contracted by the CBN to manage the funds on contractual terms which are not subject to public scrutiny or open competitive and transparent processes.

    “Furthermore, the Nigeria  Sovereign Investment Authority  (NSIA) was established, among other reasons, to undertake the management of of the excess crude account funds on behalf of the federation and that domestic capacity is being developed in order that large state-owned funds can be managed by Nigerians.

    “It is however of concern that the accruals to the federation from foreign reserve accounts have not been openly declared

    “Of more concern is the fact that some states have persistently agitated for the discontinuance of the ‘agreement’ allowing FAAC to decide savings or reserves from disbursable funds to the components of the Federation.

    “It is worrisome that the entire circumstances regarding the management of the Excess Crude Account  (ECA) of the federation is straining the relationship between the three tiers of government, in particular, with the argument of some states that they require the unused funds for  development purposes and so do not support the continued arrangement.

    “If this situation is not thoroughly examined and appropriate measures taken, it may lead to unforeseeable consequences.”

    The bill was referred to House Committee on Finace which had two  months to report back after it was adopted through voice vote.