The Nation Newspaper

Tag: cash

  • Not for cash

    Not for cash

    •Federal Government ought to honour students from Yobe and Delta states better

    After the splash of awards to our sports heroes, it was no less than an anti-climax to see how the Nigerian state responded to students who made Nigeria proud in education in Delta and Yobe states.

    From Yobe, Nafisa Abdullahi Aminu and a host of other students won laurels by winning the top prize. The final stage of the TeenEagle competition took place between July 27 and August 3 at the University of Surrey, United Kingdom. Over 900 students from 46 countries drew rhetorical swords, with three Nigeria girls performing in a class of their own. They brought pride and prestige to their school, their state, and the entire nation. That was the final stage.

    It was the first time they represented Nigeria at the international competition and ranked among the best in different categories.

    Aminu was the supremo as she was named the Overall Best in English Language skills, while Rukayya Muhammad Fema won the Overall Best in Debate. Hadiza Kashim Kalli shone with the Outstanding Talent Award (Gold Medal).  The three are students of the Nigerian Tulip International College (NTIC), Yobe campus.

    Nafisa was given a cash prize of N200,000 while Rukayya and Hadiza received N100,000 each.

    The Federal Government may say that the children were too young for wealth. But the students could still benefit from something long-lasting. The Federal Government could have guaranteed the students with scholarships until the tertiary levels. That can guarantee life opportunities that could equal the athletes’ bounty.

    The athletes were each given national honours – the Order of the Niger, a cash award each of $100,000, a three-bedroom flat. Nothing wrong with that in spite of outcries of over-pampering. They are professionals and may never get anything so affirming until they hit their grey years, and we know of many who moved into destitution and illness before they died.

    There is always a thin line between materialism and sublimity in matters like this, and it is the duty of leadership to define it.

    Read Also: Zoho growth in Nigeria hits 75%, unveils AI privacy study

    Our society should never live by materialism, and hence the example of Delta State is germane. Five students won another laurel for the nation at the 2025 World Basic Schools Debate Championship in Doha, Qatar.

    The Nigerian winning team, powered by brilliant minds from Delta State, comprised Wisdom Chukwuma of Government College, Ughelli; Otorvo Uyoyou of Alegbo Secondary School, Effurun; Abraham Honour of Okpaka Secondary School, Okpaka; Ekhamateh Splendour of Government Model Secondary School, Asaba; and Alika Daniel of Utagba-Ogbe Grammar School, Kwale.

    Governor Sheriff Oborevwori made a very pertinent comment. “Delta State is known not only for oil production and talents in comedy, music and sports, but also for brilliance in education,” he said. “I believe this gesture will encourage our youths to be diligent and excel in their studies.”

    He donated N20 million to each of the students, a modest sum that can take care of the students’ education up to the tertiary level in Nigeria, if properly managed.

    It is not too late for the Federal Government to refine its intervention. This is especially so as the Minister of Education, Dr. Maruf Tunji Alausa, has clarified that the money he gave to Nafisa and the other two winners were his personal gift in appreciation of their achievements. 

    Or else, they will present us as a philistine nation that rewards the vulgar parts of culture instead of the nobler efforts.

    In this age when the standard of education is under assault, the fact that a few young Nigerians show up at the very top calls for celebration. The way Nafisa and others were treated is no way to do so. Nigerians await the Federal Government’s own appreciation for the efforts of the trio.

    Even at that, it did not even reward the Delta State honorees.

  • Nigerians hoarding 94 percent cash, says CBN report

    Nigerians hoarding 94 percent cash, says CBN report

    Nigerians are holding onto cash at an unprecedented rate with a staggering 94 percent of the currency outside the banking system.

    This Central Bank of Nigeria (CBN) stated this in its March 2024 Money and Statistics data.

    The figures paints a concerning picture of declining trust in the banking system and potential risks to the nation’s economic growth.

    According to the data on the CBN website, the amount of physical money M1 in circulation has skyrocketed compared to the previous year. 

    In January 2024, it stood at N3.65 trillion, more than double the N1.39 trillion recorded in January 2023. 

    This trend continued throughout the quarter, with March 2024 reaching N3.87 trillion, a 130 percent increase from the previous year. 

    This significant rise suggests the CBN has pumped more cash into the system, likely in response to the scarcity issues plaguing 2023.

    While the CBN injects more cash, the amount held outside banks is growing even faster.

     January 2024 saw N3.28 trillion outside the banking system compared to N792.18 billion just a year prior. 

    By March 2024, this figure had ballooned to a concerning N3.63 trillion, a 150 percent increase year-on-year. 

    This indicates Nigerians are hoarding cash at a rate exceeding the CBN’s efforts to increase circulation.

    This behavior can be traced back to the severe cash scarcity crisis experienced in 2023. 

    The CBN’s flawed implementation of a naira redesign policy, intended to promote a cashless economy and combat crime, resulted in widespread disruption and a loss of trust in banks. 

    Fear surrounding the validity of old notes and difficulty accessing cash fueled a hoarding mentality that continues to this day.

    The CBN has previously acknowledged the issue, citing “high volume withdrawals” from banks and “panic withdrawals” by customers. 

    It also warned banks and merchants against hoarding cash. However, despite these efforts and the suspension of fees on large cash deposits, Nigerians remain hesitant to return their money to the banking system.

  • Cash flight persists in banks

    Cash flight persists in banks

    • Don’t do panic withdrawal, says CBN
    • DMBs prioritise ‘big customers’ in naira rationing

    Customers are withdrawing unusually large volumes of cash from banks and are depositing less, raising fears in financial circles.

    A customer survey at the weekend showed that complaints by  customers over scarcity of naira notes continued, with queues diverting from less dispensing Automated Teller Machines (ATMs) to banking halls for over-the-counter withdrawal.

    But the Central Bank of Nigeria (CBN) has insisted that there is enough currency in circulation to meet all demands. It also cautioned against panic withdrawals.

    Several customers had complained of inadequate cash at ATMs, Points of Sale (PoS), Bureaux de Change (BDCs) and in banking halls. Some officials of banks had in turn claimed they were not getting adequate cash supply to meet customers’ immediate cash needs.

    Some customers said banks’ ATMs were increasingly not dispensing cash, forcing them into the banking halls where banks were also rationing cash through forced withdrawal limits.

    Many customers said they were only able to withdraw about one-third of their cash demand after staying on unusually long queues in banking halls.

    The cash scarcity also appeared to be redirecting customer flow to alternative sources such as PoS operators. The uptick in alternative cash demand has seen a subtle increase in charges by some PoS operators.

    However, the degree of cash scarcity differs according to locations with customers in many areas reporting less constraints, although all customers surveyed said they had a sense of scarcity.

    A customer expressed worries that if the situation continues in the days ahead, the cash scarcity may snowball into a full-blown panic.

    Some bank officials confirmed that there were changes in cash deposit and withdrawal patterns, with more outflows than inflows.

    There were also indications that banks were hoarding cash to meet demand of large retail customers, who have considerable influence on branch operations within their areas.

    The cash scarcity continued despite assurances by the Central Bank of Nigeria (CBN) to checkmate what it described as a seasonal cash squeeze due to Yuletide and voluminous withdrawals in many branches of the apex bank.

    The apex bank had directed its branches to ensure seamless cash circulation in their states of operations, assuring that there was sufficient cash stock for economic activities and there was no need for panic withdrawals.

    Read Also: Cash crunch: CBN raises the alarm over counterfeit banknotes

    The apex bank, in a statement issued by its corporate communications department, said there were no shortage of naira notes as there is adequate supply of cash currency to meet economic demand.

     ”Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by deposit money banks (DMBs) and panic withdrawals by customers from the ATMs.

    “While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.

    “The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation,” the apex bank had stated.

    The apex bank has also cautioned the public against fake naira notes in circulation.

    Acting Director, Corporate Communications, CBN, Mrs Hakama Sidi-Ali, who gave the warning in a statement, stated that the counterfeit naira notes were mainly used for transactions in food markets and other commercial centres across major cities in the country.

    She warned that any person found complicit in the circulation of the counterfeit currency notes would face severe sanctions.

    According to her, the law provided punishment by a term of imprisonment of not less than five years, for any person found culpable of counterfeiting naira notes or any other legal tender in Nigeria.

    “The CBN is in constant collaboration with relevant security and financial agencies to confiscate fake naira banknotes, arrest and prosecute counterfeiters,”Mrs  Sidi-Ali said.

    She urged members of the public to report anyone suspected of having counterfeit naira notes to the nearest police station, branch of the CBN or through the apex bank’s website.

    The Nation had reported that two key factors were responsible for the emergence of the cash scarcity. An official of the apex bank, who sought anonymity, had blamed the cash scarcity on uneven cash flow dynamics and uncertainty over old naira notes.

    According to the official, during the festive season, individuals and businesses tend to withdraw large sums of money for holiday expenses, placing a strain on the banking system’s ability to meet the surging demand for cash.

    The official also noted that the Supreme Court ruling extending the validity of old naira notes until December 31, 2023 created uncertainty among the public, leading to a surge in cash withdrawals as people rush to stock up on old notes to avoid being caught unawares and left with less or no cash to spend during the yuletide.

    To counter the anxieties fuelling the rush to stock naira notes, the government had approached the Supreme Court to upturn the previous ruling on December 31, 2023 deadline. The apex court ruled in favour of indefinite extension of the use of old naira banknotes.

    The Supreme Court’s ruling stipulates that the old versions of the N200, N500, and N1,000 banknotes will continue to be legal tender, alongside the redesigned versions. In accordance with Section 20(5) of the CBN Act 2007, all banknotes issued by the CBN will remain legal tender indefinitely.

     The CBN followed with direct orders to its branches to continue issuing and accepting all denominations of Nigerian banknotes, both old and redesigned.

    The apex bank however urged the public to embrace alternative modes of payment, such as e-channels, to minimise the reliance on physical cash.

  • Cash crunch

    Cash crunch

    • The FG should protect local manufacturers in NMMP 2. But the real disease is that DisCos are undercapitalised

    That the Federal Government still owns 40% of DisCos explains why the World Bank (WB) is funding Phase 2 of the National Mass Metering Programme (NMMP), worth US$ 155 million, to produce 1, 250, 000 meters.

    WB is the public-sector arm of the Bretton Woods UN global finance-support system.  The private-sector arm is the International Finance Corporation (IFC).  Had DisCos belonged fully to private investors, IFC could have been the funding partner.

    So, the Transmission Company of Nigeria (TCN), NMMP’s implementation agency, should re-tweak terms with WB to ensure foreign firms don’t gobble up the expected 1, 250, 000 meters, for “free” distribution to DisCo customers, thus risking local jobs, in this dire season of high unemployment and soaring inflation.  

    That is imperative because local meter makers are screeching that terms attached to bids for a share of the meter pie is rather harsh: from the prescribed cash flows, from Lot 1 to Lot 5, on offer: US$ 4, 465, 000 (Lot1), US$ 5, 105, 000 (Lot 2), US$ 5, 285, 000 (Lot 3), US$ 5, 885, 000 (Lot 4) and US$ 4, 950, 000 (Lot 5).  

    Cross-lot bids even require a higher outlay of cash flow, putting the lower capitalised local firms at a clear disadvantage.  “Cash flow” here is the average yearly sales for the last three years.

    To be fair, the other bid “conditionalities” appear routine hedges to ensure every firm involved is robust enough not to default in repaying its loan; aside from being a lawful and civic corporate citizen: a five-year audited financial statements, replete with balance sheets, cash flow statements, auditor’s reports — all of which must assert both the bidder’s robust current financial health, aside from long-term profitability.

    Still, without prejudice to WB’s right to protect its investment, the NMMP original goals should not be sacrificed: to promote and protect indigenous smart meter firms, deepen local capacity, conserve foreign exchange by local manufacturing and create some one million direct jobs and three million indirect ones.  

    The Muhammadu Buhari Presidency framed NMMP on these very critical components.  There is no pressing reason the Bola Tinubu administration should depart from that path.  Involving local manufacturers in NMMP Phase 2 should be treated as a national economic emergency — a strategic policy prop to prep every sector of the economy for the expected revamp, at the end of the current painful reforms.

    Read Also:CBN assures of sufficient cash supply

    It is true: NMMP was no soar-away success, thus giving way to the Meter Asset Providers (MAP) initiative, in which electricity consumers buy meters, which ironically are DisCos’ legal assets.   

    Such, however, was — and still is — the gulf in metering, aside from the galloping injustice of the so-called estimated billing system that many customers, constantly harassed by the arrogance and corruption of the DisCos’ disconnection gangs, sought relief in MAP.  

    But even with MAP and NMMP, the gulf is still there.  Many households and even small-scale ventures still don’t have meters but resent estimated billings, insisting —and rightly so — that the estimated bills are unfair and unjust.  The DisCos, on their own part, log “debts”  in their books they perhaps will never collect, thus threatening own long-term business survival.

    That is the real disease. NMMP, MAP and any future meter initiative are only the visible symptoms: the DisCos appear so badly capitalised they lack cash to invest in prepaid meters, the only tool capable of securing their revenue!

    If we were to erect a cheeky yet painfully true imagery: the DisCos put up alluring edifices as business bases.  Yet, these edifices lack robust sections for cashiers or tellers that ensure revenue flows into their till!  That has driven the recurring symptom of incapacity to meter everyone, to secure their revenue.

    That is why the Federal Government — co-owners of DisCos — must urgently address this very critical impediment, now that the DisCos’ licences are expired, though Adebayo Adelabu, Nigeria’s power minister, just “lamented” the industry regulators, the Nigerian Electricity Regulatory Commission (NERC), had “quietly” renewed the licences, with the minister saying he was more concerned with signing a performance bond with the DisCos.

    That appears not a bad idea.  But performance bonds will fall flat if players cannot secure their revenue.  That is why the government must ensure DisCos are capitalised well enough to meter every customer, corporate or household.  

    Ironically, local meter makers also appear undercapitalised.  Otherwise, they wouldn’t complain over a foreign onslaught.

  • Yaba donates cash to aged, widows

    Executive Chairman of Yaba Local Council Development Authority (LCDA) Kayode Omiyale has appealed to philanthropic organisations, Churches, Mosques and kind hearted individuals to give attention to the aged and widows in their communities.

    He spoke at the distribution of cash to 80 aged persons and 20 widows from “Ward F”, Iyawa, Yaba. The beneficiaries got 10,000 each.

    Omiyale said: “Civil servants retire at 60 years, University Administrators retire at 65, Judges and Professors retire at 70; these group of people constitute the senior citizens and those doing their own businesses in this age bracket. They spend their youth developing the country and the society; they deserve to enjoy social security.

    “We may not be able to do it as it is done in other developed climes, but we shall start from somewhere and build on it. The aged are weak and feeble, we need to lend a helping hand to lift them. Children should not forget their aged parents whatever the circumstance.”

    The chairman also commiserated with the people of Iwaya over the death of the Olu Of Iwaya, Oba Muritala Aremu Ogun-Oloko, who he called the “custodian of the culture and tradition of the people of Iwaya”.

     

     

     

  • Unemployed steals phones, cash

    An unemployed man, Paul Samuel, was yesterday brought before a Lagos High Court for allegedly stealing phones and a wallet containing N27, 000 from a road user, at gunpoint.

    Prosecutor Yusuf Sule said the defendant committed the  offence on December 24, 2016, at about 9pm, at Bayoff, Ishashi, Lagos.

    He alleged that the defendant conspired with another person, who is at large and robbed Mr. Benjamin Amiame of three phones, a gold necklace, a wallet containing N27, 000, identity card and an automated teller machine (ATM) card.

    Sule said the defendant was armed with gun during the act.

    The defendant pleaded not guilty.

    The prosecutor urged the court to remand him in custody until the next adjourned date.

    Justice Adedayo Akintoye granted the request and adjourned till May 15.

     

  • BUA rewards customers with over 20 cars, cash

    BUA Group at the weekend rewarded its customers and distributors with 25 cars worth over N500million and cash gifts in appreciation of their support and loyalty to the growth of the company. The event tagged “Celebrating Excellence: 30 Years of Unlocking Opportunities was attended by captains of industries and banks, staff, friends, among other dignitaries.

    The Executive Chairman/CEO, BUA Group, Abdul Samad Rabiu expressed gratitude to the customers for believing in the vision and mission to build a world class company, assuring that with their continued partnership would take the Group to higher height.

    He said BUA started as a trading company, importing various commodities into Nigeria, saying that the company’s achievements was made possible with the support and loyalty of customers, partners, employees, family and friends. “This is a celebration of You – our valued customers, partners, employees, family and friends whose support and loyalty has helped us grow the BUA brand from its days as a trading company to one of Nigeria’s largest manufacturing concerns. We could not have done this without you.

    “I recall when we started as a small trading outfit, importing various  commodities into Nigeria, to when we set up our edible oils processing  plant to add a little bit of value. From then on, we went into Flour Milling, Sugar Refining, Pasta Production and cement bagging with our BUA Cement1 Floating Terminal – an innovative solution at that time.”

    Abdul Samad he was driven by a hunger to do even more in terms of Production across the value chain, saying, “we ventured into ports operations in Port Harcourt, Rivers State, Sugar Plantations with over 70,000ha in Lafiaji and Bassa in Kwara and Kogi states, and cement manufacturing with our plants in OBU and Sokoto.  These two cement plants have a combined capacity of over 8million tonnes making us the second largest producers by volume in Nigeria as of now.”

    He said one of the Group’s subsidiaries, Sokoto Cement (CCNN Plc) which is a listed entity, is now the eighth largest company on the Nigerian Stock Exchange with a market capitalization of over N300billion, adding that the Group’s social pact within its  communities and the country as a whole, has also been strong. “We have embarked on various social intervention and impact activities across healthcare, education, water and sanitation to sports, poverty eradication, and environmental sustainability, amongst others,” adding, “we have firmly put a human face to our business.”

  • Panic as woman allegedly vomits cash in Warri

    There was panic Sunday on Ogaga Street, Effurun in Uvwie council area of Delta state when a lady, Mariam Abdul, in her 20s was allegedly found vomiting cash early Sunday morning.
    The Nation gathered that the husband of the lady, whose name was gathered to be Taye Adekunle, raised the alarm at about 3:45am, calling neighbours to come to his aid as his wife was behaving strangely.
    According to an eyewitness, who is a resident of the area, Mariam had recently been a victim of the suspected ritualists who go around collecting female panties and other underwears in different parts of the state.
    “Recently, Mariam’s panties were stolen by some unidentified ‘Yahoo Boys’ and she raised the alarm that her panties she spread after washing had been stolen. You must already know that this has been a trend in the state in recent times.
    “But at about 3:45am, we heard a strange voice of ‘help me o’ from their apartment. The man was calling for help. Many of us could not open our doors until we heard the voices of some vigilante men in the area. When we got there, the saw the lady vomiting N500 notes.
    “I would have doubted if I had not seen her myself. We’re all dumbfounded because we don’t know what to do. The N500 notes were coming out one after the other. It was through the effort of the pastor and some residents who were praying for her that she stopped.
    “Three weeks ago, she and her husband announced that her pant which was hung in front of their apartment was missing. No one claimed to see the pant. We suspect that whoever stole the pant might have used it for ritual purpose since it is the reigning thing,” the source said.
    Meanwhile, when reached for response, the Warri Area Commander of the Delta state police command, Alhaji Mohammed Shaba, narrated the much he had been informed of the situation preceding the alleged vomiting of cash, adding that the matter would be investigated.
     “Today, according to the DPO (B’ Division), he received a distressed call this morning. That one Taye Adekunle of Ogaga Street Warri reported to B’Division that three weeks ago his wife, Mariam Abdul, washed two pants and a rapper and spread them outside their apartment. That the two pants and the rapper was stolen by unknown thieves.
    “That Saturday 22nd December, his wife started experiencing strange spiritual attacks and then he invited a pastor and when he started praying for her, she started vomiting water including 14 pieces of N500 notes. The victim had been taken to hospital but when they are done the case will be transfer to state CID,” he said.

  • Council chief distributes empowerment items, cash to constituents

    It was all joy for about 350 residents of Ibadan North East Local Government Area when the chairman of the council, Hon. Lekan Afuye, distributed empowerment items and cash assistance worth N10 million to them.

    While distributing the items which included deep freezers, gas cookers, sewing machines, hair dryers, motorcycles, barbing clippers, power generating sets, grinding machines and cash, Afuye said: “the essence of the programme is to fulfil one of the electioneering promises and make the people economically buoyant and self-reliant.

    A statement by the Information Officer of the council, Mrs Banke  Adeyemo, said the council boss further stated that the beneficiaries were selected without any form of partiality, favouritism or party affiliation. He urged them to make judicious use of the materials in order to achieve desired results.

    Speaking at the event, the Permanent Secretary, Ministry of Local Government and Chieftaincy Matters, Mrs. I. O. Olaleye commended the council chairman for the laudable initiative that complements the state government’s efforts at alleviating poverty and enhancing trading and commerce which, in turn, will improve local government Internally Generated Revenue (IGR).

    In their various remarks, the APC Leader, Chief Ayo Eniade, APC Chairman, Ibadan North East Local Government Area, Hon. Rasaq Ekundayo and other eminent personalities that spoke at the occasion, praised the council chief for fulfilling one of his electioneering campaign promises. They advised the beneficiaries not to sell the materials.

    Alhaji Ganiyu Owolabi, Moji-sola Comfort and Mrs.  Banke  Olajire who responded on behalf of all beneficiaries thanked Afuye for selecting them as beneficiaries. They promised to make judicious use of the empowerment items and continue to support the APC-led government in order to enjoy more dividends of democracy.

    Dignitaries at the occasion included His Royal Majesty Oba Owolabi Olakulehin, who is also the Balogun of Ibadan land; Chief Whip of the Oyo State House of Assembly, Hon. Wasiu Lafioye, the Executive Assistant to the Governor on Administration, Mr. SojiEniade; the Executive Assistant to the Governor on Political Matters, Dr. Morohunkola Thomas; Executive Chairman, Ibadan East LCDA, Prince Gbade Lana; Head of Local Government Administration, Ibadan North East Local Government, Engr.  Babatunde Adewale; Chairman Lagelu North LCDA, Basorun Debo Arowomole and Chairman, Aare Latosa LCDA Otunba B. A. Oladeji.

  • FCMB rewards promo winners with cash, gift prizes

    First City Monument Bank (FCMB) has given cash and gift prizes to 2,576 winners in the its “Millionaire Promo Season 5”.

    The promo, designed to reward and empower customers, ran from March to October this year with four regional and zonal draws, including the grand finale, on November 28.

    Of the 2,576 winners, 16 lucky customers won cash ranging from N1 million to N2 million, while the remaining 2,560 were rewarded with LED televisions, generating sets, decoders, tablets and smart phones.

    At the grand finale draws of the ”FCMB Millionaire Promo Season 5” on November 28, four customers smiled home with N2 million each, just as 640 others received gift items.

    The promo which targeted all existing savings account customers of FCMB with monthly account balance ranging from N10,000.00 to N50,000.00, was designed to give extra value and empowerment to customers of the Bank, while encouraging financial inclusion and savings culture.

    Idi Awawu emerged winner of the star prize of N2million at the Abuja & North regional draw in Abuja, while Simeon Olanrewaju got the same amount at the Lagos Regional Draws held in Otta, a town between Lagos and Ogun state.

    In the same vein, Obioma Uzonwunne was the lucky winner of N2 million at the South-East & South-South Regional draws in Asaba, Delta state and Ajani Mayowa won the same amount at the South-West Regional draws in Akure, Ondo state.

    Speaking on the development, the winners expressed gratitude to FCMB for creating opportunities to reward and empower customers through the Millionaire Promo.

    In his comment, a Director of the Consumer Protection Council, Dauda Waja, hailed the Bank for conducting the exercise with integrity and transparency.

    Speaking on the promo, the Executive Director, Retail Banking of FCMB, Olu Akanmu, said with the grand finale of the draws held nationwide, the bank has fulfilled the promise it made to customers to reward those who participated and qualified for the promo and participated in the four draws organised during the exercise.