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  • CBN earns N392m as contraventions in 2013

    CBN earns N392m as contraventions in 2013

    Six commercial banks paid N392.77 million in fines to the Central Bank of Nigeria in 2013 for contravening various aspects of Banks and Other Financial Institutions Act (BOFIA).

    The News Agency of Nigeria reports that the penalised banks are – Diamond Bank, Zenith Bank, Skye Bank, UBA, First City Monument Bank (FCMB) and Sterling Bank.

    A breakdown of the figures contained in the individual banks’ 2013 Annual Report indicated that Zenith Bank paid the highest fine of N276 million for various contraventions.

    The bank was fined for promoting top management staff without CBN approval, insufficient data for lodgment on credit report and non-rendition of original certificate of capital importation.

    Sterling Bank paid N52.97 million fine for promoting management officials without CBN’s approval and foreign exchange examination infraction, among others.

    UBA was fined N43.70 million for opening a branch without prior approval of CBN, improper reclassification of public sector deposits and appointment of staff without CBN approval, among others.

    Diamond Bank paid N7.99 million fine for numerous infractions.

    A breakdown of Diamond Bank infractions showed that the bank paid N2 million fine for the delay in refunding a customer’s 827,223 dollars as directed by the CBN.

    It was fined N4 million for promoting two senior management personnel without the approval of the CBN.

    The bank was also ordered to pay N1.99 million for withholding a customer’s funds for 26 days after the promoters of the customer had written the bank that they were no longer interested in a facility.

    Similarly, FCMB Group was fined N6.1 million for delayed disbursement for 20 days to the beneficiary under Commercial Agriculture Credit Scheme, among others.

    Skye Bank was fined N6 million for failure to obtain CBN’s approval to promote a senior staff and under reporting of regulatory returns on public sector deposits.

    It was also fined for failure to update documentation on a customer’s account.

     

  • Jonathan cancels Kano trip as police seal off palace

    Jonathan cancels Kano trip as police seal off palace

    Sanusi gets letter, staff of office

    Four feared dead in clash

    President Goodluck Jonathan has shelved his planned trip to Kano following the emergence of former Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi as emir.

    The police yesterday sealed off the palace, fueling reports of a plot by the Federal Government to stop Sanusi from ascending the throne.

    Sanusi got his letter of appointment and staff of office from Kano State Governor Rabiu Kwankwaso at Government House yesterday.

    The President was expected to pay a condolence visit to Kano yesterday, but the trip, sources said, was cancelled on Sunday night following Sanusi’s emergence.

    A source said: “The President wanted to be in Kano on Monday (yesterday) but the emergence of Sanusi and the protests that accompanied it made the President to stay away from any controversy.

    “I think the President may find a more auspicious time to be in Kano. He loves the people of the state; he shares their pain on the loss of the late emir.”

    It was gathered that the protest that greeted Sanusi’s choice on Sunday was instigated.

    A source said one of the contestants for the stool may go to court to challenge Sanusi’s emergence. Yesterday, Sanusi waved the olive branch, urging his fellow contestants to join hands with him in running the emirate.

    Some forces are pushing for the maintenance of the status quo once the dispute over the stool is in court to deny Sanusi access to the palace.

    The source said: “The police have deployed some of their men in the palace to protect it for security reasons. These policemen were drafted to the palace on Sunday night after the emergence of the new Emir.

    “The police said they were acting on intelligence report including the invasion of the Emir’s personal room in the palace by some people who stole some items. They said they are investigating the theft.

    “There is however a strong suspicion that the policemen were brought to the place to stop Sanusi from having access to the palace following protests.

    “They are under stern instruction not to allow any person, including the new Emir, from entering the palace until all issues surrounding the appointment are resolved.”

    Responding to a question, the source added: “The police might have got wind of plans to go to court by some people to stop the installation of Sanusi.

    “They said they expect all stakeholders to stick to the status quo.”

    Findings also revealed that a tight security ring had been woven around the four kingmakers, Alhaji Yusuf Nabani (Madakin Kano); Alhaji Sarki Abdullahi (Makaman Kano); Alhaji Bello Tuta (Sarki Dawaki Mai-Tuta); and Alhaji Mukhtar Adnan (Sarki Bai).

    Another source added:  “Some riot policemen have been provided for the kingmakers to protect them from any harm.

    “Virtually everyone is besieging the kingmakers to know what really transpired at their session on Saturday and Sunday.

    “So, these kingmakers are central to the appointment of a new Emir and aftermath in Kano. This is why they are being protected.”

    The plot to stop Sanusi’s installation is believed to have been hatched by some aggrieved princes and bigwigs in Kano.

    A third source added: “Those aggrieved have perfected their papers which they would file a court in Kano any moment from now.”

    Youths barricaded the gate of the Palace and some streets leading the to the turbaning of Alhaji Sanusi Lamido Sanusi as the new Emir of Kano yesterday.

    Fierce-looking soldiers and riot policemen have been drafted to prevent the irate mob from vandalising the Palace.

    Some youths said they have been there since Sunday.

    “We have been sleeping here for the past two days since the announcement of Alhaji Sanusi Lamido Sanusi as the new Emir by Governor Rabi’u Musa Kwankwaso’s government”, they said.

    Security men blocked the gate leading to the Palace with their vehicles to prevent the protesters from entering.

    Contacted on telephone, Kano State Commissioner of Police Adenrele Shinaba said: “Ours is to take control of security and that is what we are doing.”

    The family of the late Emir Ado Bayero is still living inside the Palace contrary to reports that they have been relocated.

    Our reporter learnt that four people may have died and several others injured during a clash between Sanusi’s supporters and those who opposed his appointment.

    Both groups made bon fires on the road leading to the Emir’s palace and Kofar Nasarawa. The police put out the fire and dispersed the crowd. But they regrouped for another free-for-all.

  • APC accuses PDP of inciting violence in Kano

    APC accuses PDP of inciting violence in Kano

    The All Progressives Congress (APC) has accused the Peoples Democratic Party (PDP) of inciting the violence that followed the emergence of former Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi as Emir of Kano last Sunday.

    The  PDP’s action was an attempt to destabilise the state, APC said.

    It urged the Kano State Attorney-General to prosecute all PDP officials involved “in this act of destabilisation”.

    In a statement yesterday in Lagos by its Interim National Publicity Secretary, Alhaji Lai Mohammed, APC condemned a statement by PDP’s Publicity Secretary Olisa Metuh congratulating one of the contenders “long before the Kano State Government announced the new Emir”.

    The party said the action was premeditated and calibrated to incite violence.

    It wondered why PDP, which has access to Kano or any state government, would rush to the media to congratulate a contender who had not been selected, without even contacting the selecting authority to ensure the veracity of whatever news it might have heard.

    “What is so urgent about congratulating the new Emir that could not have waited for a few hours for the appropriate authority to make an official announcement?” APC queried.

    The party said when the announcement was eventually made and the contender, who had already been congratulated lost out, “it is only natural that his supporters would feel short-changed”.

    APC said: “It is, therefore, obvious that the PDP, through its National Publicity Secretary, went out of its way to stoke the fire of violence in Kano.

    “Since we live in a country which is being governed by the rule of law, the best option open to the Kano State Government is for the Attorney-General to immediately initiate criminal proceedings against PDP and its officials for incitement. Whatever explanations they have for their irresponsible and premeditated actions, they should reserve for their defence in court.”

    But the PDP said APC’s statement was an attempt to blackmail the ruling party.

    Its spokesman, Olisa Metuh, acknowledged that he “made a mistake” on the announcement.

     

  • Money transfer operators to pay beneficiaries via bank accounts

    Money transfer operators to pay beneficiaries via bank accounts

    The Central Bank of Nigeria (CBN) has mandated opera-tors of money transfer services to pay beneficiaries through their bank accounts only.

    In a draft guidelines released at the weekend, the CBN said all in-bound money transfers to Nigeria would only be disbursed to beneficiaries through bank accounts.

    It stipulated that where the beneficiary does not have a bank account, payments would only be made upon the provision of a satisfactory reference from a current account holder in a bank, confirming that the beneficiary is the bona fide owner of the funds.

    The regulator said an outward payment transaction would henceforth be executed in a convertible currency agreed between the parties; and where a currency conversion service is offered before initiation of a payment transaction, or at the point of payment, the money transfer services operator must disclose all charges, as well as the exchange rate to be used for converting the payment transaction.

    “A money transfer operator shall make payment to customers only in Nigerian currency in line with CBN regulation; use the prevailing exchange rate on the day the transfer is received, and declare in the receipt/certificate of transfer that the money paid to the customer is not counterfeited. All money transfer operators shall comply with the guide to money transfer charges as provided by the CBN from time to time,” it said.

    According to the regulator, the provider must equally make refund where wrong, inappropriate or disproportionate charges or fees are identified internally by provider.

    Also, a money transfer service operator is not expected to allow or process a transaction that appears to have been deliberately split into small amounts to avoid the reporting requirements under the provisions of the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Act.

    “An approved money transfer service operator may conduct its business through an agent, in line with the provisions of these guidelines. An agent is a suitable entity engaged by a money transfer service operator to provide money transfer service on its behalf using the agent’s premises, staff and technology,” it said.

    The new guidelines also require that a money transfer operator holds all customer funds for transfer in an account designated as “customers’ account” domiciled with any deposit money bank in the country. This account, the CBN said, would be separate from all other accounts maintained by the operator.

    The operators are also to maintain complete and accurate account records, produce, upon request by the bank, all documents pertaining to the account activity, including, but not limited to, bank statements, cheque books, deposit slips and reconciliations or other comparable account records.

    “A money transfer service operator shall keep accurate and up to date records and ensure that the records are verified on a daily basis. A money transfer service operator shall submit its returns to the Director, Trade & Exchange Department, CBN as may be prescribed from time to time,” it said.

    All money transfer operators in Nigeria shall comply with the provisions of the CBN Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions Regulations 2013″ and all other applicable laws and regulations.

    A money transfer service operator shall disclose to its customers details of applicable exchange rate, commission, fees and any other amount that may be charged by banks/agents involved in a transfer. The meaning of any technical terms and acronyms used that it neither accepts deposits nor lends to the public prevailing exchange rates at all times and in all locations it conducts business.

  • CBN to pursue gradual reduction of interest rates – Emefiele

    CBN to pursue gradual reduction of interest rates – Emefiele

    The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, on Thursday assured Nigerians that the apex bank would focus on gradual reduction of interest rates under his leadership.

    Emefiele gave the assurance at a news conference to outline his policy focus as the new CBN Governor in Abuja.

    The News Agency of Nigeria (NAN) reports that Emefiele who assumed office on Tuesday is the 11th CBN Governor.

    He replaced Sanusi Lamido Sanusi, who was suspended by President Goodluck Jonathan before the expiration of his tenure.

    “We shall pursue a gradual reduction in interest rates.

    “A comparison of selected macro-economic aggregates from some emerging market countries, including South Africa, Brazil, India, China, Turkey and Malaysia indicate that Nigeria has one of the highest Treasury Bill rates.

    “Such high rates creates preserved incentives for commercial banks to simply buy virtually risk-free government bonds rather than lend to real sector,’’ he said .

    He said that to enhance financial access and reduce the cost of borrowing credit, there was the need to pursue policies targeted at making Nigeria’s Treasury Bill rate more comparative to other emerging markets.

    Emefiele said that while reduction in both deposit rates would encourage investment attitude in savers, a reduction in lending rates would make credit cheaper for potential investors.

    “The bank will also begin to include unemployment rates as one of the key variables considered for its monetary policy decisions.

    “In the interim, we will continue to maintain a monetary policy stance, reflecting the liquidity conditions in the economy as well as the potential fiscal expansion in the run-up to the 2015 general elections,’’ he said.

    On the exchange rate policy, he said the key goal would be to maintain exchange rate stability in view of the high import dependent nature of the economy and the significant exchange rate it passed through in recent years.

    According to him, a systematic depreciation of the Naira would literarily translate to considerable inflationary pressure with attendant effect on macro-economic stability.

    “Therefore, under my leadership, the bank will continue to focus on maintaining exchange rate stability and preserve the value of the domestic currency.

    “We will sustain the managed float regime in the management of the exchange rate as this will allow the bank to intervene when necessary to offset pressure on the exchange rate.

    “To support this strategy, we will strive to build-up and maintain a healthy external reserve position and ensure external balance,’’ Emefiele said.

     

  • CBN Governor Emefiele to unveil agenda tomorrow

    CBN Governor Emefiele to unveil agenda tomorrow

    Former Zenith Bank Managing Director Godwin Emefiele resumed as Central Bank of Nigeria (CBN) governor yesterday, promising to unveil his agenda tomorrow. He succeeds Mallam Sanusi Lamido Sanusi, who was suspended in February. Sanusi’s five-year tenure expired on Monday.

    Emefiele, 52, received the handover note from the former Acting Governor, Dr. Sarah Alade, at the CBN, Abuja headquarters.

    A statement by a CBN spokesman, Isaac Okorafor, said: “Mr. Emefiele, who was cleared by the Senate on Wednesday, March 26, 2014, arrived at the CBN Headquarters at 7.30 a.m yesterday, June 3, 2014, to the warm embrace of the four Deputy Governors at the Bank and expectant staff, led by Dr.  Sarah Alade, whose tenure as Acting Governor ended on Monday, June 2, 2014”.

    Emefiele has over 20 years banking management experience. He is a 1984 graduate of Finance from the University of Nigeria, Nsukka. He hold MBA in Finance from the same institution. He is also an alumnus of Executive Education at Stanford University, Harvard University (2004) and Wharton Graduate School of Business (2005).

    Also yesterday, the Senate confirmed the re-appointment of four members of the CBN Monetary Policy Committee.

    They are: Dr Adedoyin Salami (Microe-conomic Policy), Prof. Chubuike Uche (Banking and Finance), Dr Shehu Yahaya (Development Economics) and Mr Abdul-Ganiyu Garba (Monetary and Fiscal Policy).

    Their confirmation followed the approval of the recommendation of the report of the Senate Committee on Banking, Insurance and other Financial Institutions which screened them.

    Committee Chairman   Bassey Otu, said the nominees met the criteria for appointment.

    The Senate also confirmed the appointment of Alhaji Hassan Bashir (Bauchi State) and Mr Olarewaju Fayemi (Ekiti State) as members of the National Population Commission (NPC).

    They were confirmed after scaling through the screening conducted by the Senate Committee on National Identity Card and National Population.

    Senate President David Mark urged them to assist the commission to resolve the controversy surrounding the population figure.

    Mark said: “Population is a very serious issue in this country and I believe that they would bring something on board so that we know our true figures.

    “Every time we talk about statistics in this country, depending on who you are talking to, we don’t appear to have the accurate figures.

    “I hope that they would help to bring something on board so that we can know our true population in this country.”

     

  • Senate to vote on Constitution amendment today

    Senate to vote on Constitution amendment today

    •Confirms four as CBN’s MPC members

    The Senate said yesterday it will vote on new amendments to the Constitution today.

    The vote is coming two months after the Senate suspended the exercise, following the controversy it generated.

    The outrage was on a clause seeking to empower the President to initiate the process of making a new Constitution. The proposal seeks to amend Section 3 (b) of the Constitution, which deals with how a new constitution can be initiated.

    The Chairman of the Review of the 1999 Constitution and Senate Deputy President Ike EKweremadu had explained before withdrawing the controversial proposal “that Section 9 of the first Alteration Bill provided for how a new Constitution can come into being through the National Assembly”.

    He added: “The aim of this insertion is to make provision for the President, in addition to the National Assembly, to initiate the process of a new constitution.”

    Ekweremadu announced yesterday that the Senate will today vote on the other proposed amendments that were not considered before the previous withdrawal.

    Some of the proposed amendments to be voted on today include:

    ·          The alteration of Sections 68 and 109 to mandate the Clerk of the National Assembly and the Clerks of states’ Houses of Assembly to notify the Independent National Electoral Commission (INEC) in writing within seven days of the existence of a vacancy arising from death, resignation or defection of a member of the National Assembly or a member of the State House of Assembly.

    ·          Alteration of Sections 134 and 179, which aims to extend the time for conducting presidential and governorship re-run polls from seven days to 21 days, as contained in Clauses 4 and 5.

    The INEC is seeking an extension of the seven days to 21 days after results have been announced.

    Others are:

    ·          The empowerment of INEC to deregister political parties which fail to win presidential, governorship, chairmanship of a local government, Area Council or a seat in the National or States’ Assembly elections.

    ·          The conferment of exclusive jurisdiction on the Federal High Court for the trial of offences arising from, pertaining to or connected to the violation of the provisions of the Electoral Act and Any Other Election-Related Act of the National Assembly and the proposal to alter the Third Schedule of the Constitution in Clause 8 to include former Senate Presidents and Speakers of the House of Representatives as members of the Council of States.

    Today, Senate President and House of Representatives Speaker are members but former Senate Presidents and Speakers are not.

    Under the Constitution, former Chief Justices (CJs) are members of the Council of States, besides the serving Chief Justice of Nigeria (CJN).

    Also, the Senate confirmed yesterday the nomination of Dr Adedoyin Salami, Prof Chibuike Uche, Dr Shehu Yahaya and Abdul-Ganiyu Garba for appointment as members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).

    It also confirmed Alhaji Hassan Bashir (Bauchi) and Olanrewaju Emmanuel Fayemi (Ekiti State) for appointment as members of the National Population Commission (NPC).

    Senate President David Mark urged the nominees to join the chairman and other members of the commission to conduct a population census that would give the country accurate figures of the citizens.

     

     

    Mark said: “My appeal to the newly confirmed members of the NPC and those already there is that they should plan and work very patriotically to give this country the exact figures of its population after the next head count.”

     

     

     

     

     

     

     

  • CBN moves to check money laundering ahead of 2015 elections

    CBN moves to check money laundering ahead of 2015 elections

    Ahead of the 2015 general elections, the Central Bank of Nigeria (CBN) is reviewing the money laundering policy to curb abuses.

    Findings showed that the CBN is reviewing the reporting line for compliance officers to ensure they report directly to bank Chief Executive Officers (CEOs) against the prevailing practice in most banks where they report to general managers or directors.

    This, a CBN source said, makes it difficult for money laundering breaches to be sent to the CEOs and the Nigeria Financial Intelligence Unit (NFIU).

    “What the CBN wants is that rather than the compliance officers reporting to directors, which is the case at present, will report directly to bank CEOs to ensure that money laundering breaches are tackled without delay. We want to monitor major fund transfers and movements, especially as the 2015 election approaches,” the source said.

    The source said the need to address the anomaly prompted the CBN to issue a circular at the weekend which mandates the banks to promote their compliance officers to positions where they can report directly to their CEOs.

    In the circular, the CBN said it was worried over poor qualification of compliance officers in some banks and discount houses.

    The circular signed by K. O. Balogun for director, Banking Supervision, said information available to the apex bank revealed that chief compliance officers of some banks and discount houses were below the grade of general manager.

    The CBN said equally worrisome was that most of them do not report directly to the Board of Directors.

    “This is a flagrant disregard of extant laws and regulations on the subject. The CBN circular ref BSD/2/2002 dated August 8, 2002 and FPR/DIR/GEN/001/022 dated  July 18, 2013 directed that banks and discount houses should designate Chief Compliance Officers, not below the grade of a General Manager to, among other things, apply the provisions of the relevant Acts and circulars on money laundering at various levels of their institutions,” it said.

    It said Section 9(1) of the Money Laundering (Prohibition) Act, 2011(as amended) also requires them to designate, at management level, Chief Compliance Officers (CCOs) in their Head Offices and branches, who have the relevant competence, authority and independence to implement their institutions AML/CFT Compliance Programme.

    It said Section 7(2) of Central Bank of Nigeria (AML/CFT in Banks and Other Financial Institutions in Nigeria) Regulations, 2013 stipulates that the CCO shall be appointed at management level and shall report directly to the Board on all matters under the Regulations.

    The CBN, therefore, directed that no Chief Compliance Officer in their institutions is below the grade of General Manager without the CBN prior approval.

    Accordingly, the particulars of all current CCOs with evidence of the CBN approval of same and reporting line should be forwarded to the Director Banking Supervision within 1(one) week from the date of this letter.

    The CBN also observed with concern the lack-lustre attendance of CCOs of the monthly meetings of the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN), which it said has resulted in the inability of the forum to form the required quorum necessary to take vital decisions pursuant to its mandate.

  • Emefiele resumes as CBN’s helmsman

    Emefiele resumes as CBN’s helmsman

    The new governor of the Central Bank of Nigeria, Godwin Emefiele, took office on Tuesday with the immediate task of protecting a weak naira.

    With government spending also expected to rise ahead of next year’s presidential election, the new governor will have no room to let up on monetary policy and will have to raise interest rates at some point over the next year, analysts say.

    Emefiele’s appointment follows the departure of Lamido Sanusi, who was suspended by President Goodluck Jonathan in February.

    Sanusi’s removal raised concerns about the bank’s independence and Emefiele will be closely watched by markets fearful of government interference at the bank, Reuters says.

    The government accused Sanusi of irregularities in his handling of the CBN’s budget and President Jonathan has said the bank’s independence will remain sacrosant.

    “The governor resumed today and we are just done with the official handing over,” the CBN spokesman, Isaac Okorafor, said.

    Emefiele, who took over from acting governor Sarah Alade for a five-year term, will give a press conference at 10am on Thursday.

  • Our expectations from the new CBN Gov, by capital market chiefs

    Our expectations from the new CBN Gov, by capital market chiefs

    Capital market operators have urged the new Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, who resumes today, to consolidate on the gains of the previous administration and implement new policies that would strengthen the capital market.

    Leading capital market operators at the weekend said the market was expectant and full of optimism that the new governor would sustain the stability in the exchange market while pushing for new reforms that would remove contradictions.

    Outgoing president of Chartered Institute of Stockbrokers (CIS), Mr. Ariyo Olushekun, said the new governor needs to make policies that would integrate the short and long-term ends of the market to play their traditional roles in a seamless financial system.

    According to him, the new governor should have a broad view of the entire financial market as a single marketplace and make policies with such a mindset.

    “I implore him to make policies that would strengthen the Nigerian capital market. If the capital market is able to play its traditional role of providing long term capital, the banks would be able to focus on short to medium term capital and would therefore be relieved of some significant pressure,” Olushekun, who is also the managing director of Capital Assets Limited, said.

    Managing director, GTI Securities, Mr. Tunde Oyekunle, said the new governor should make the process of obtaining certificate of capital importation (CCI) easier to encourage greater inflow of foreign portfolio investments.

    According to him, the stability of both monetary policy and foreign investment will enhance growth in the capital market.

    “We expect a stable monetary policy that will encourage lending to small and medium enterprises (SMEs) and private institutions in order to stimulate investments in the local economy. Local ideas and business initiatives needs to be nurtured through a stable monetary policy,” Oyekunle said.

    Afrinvest (West Africa) said they expected that new governor’ primary objective will be to ensure the gains in price and exchange rate stability are preserved and therefore maintain the previous regime’s hawkish stance.

    “In view of the 2015 campaign spending, we anticipate further liquidity tightening by an additional increase in the cash reserve ratio (CRR) on public sector deposit to 100 per cent before the end of 2014 and a subsequent reduction post the 2015 election,” Afrinvest stated.

    The investment firm noted that in view of further stimulus tapering in the United States (US) and the expected end to quantitative easing (QE) in November 2014, there could be further capital reversals, hence mounting more pressure on the Naira in the mid-term.

    According to Afrinvest, the pressure will present the CBN with the daunting task of either increasing the Monetary Policy Rate (MPR) to moderate capital flow reversals or permit the devaluation of the Naira to prevent further depletion of the reserves. The former may be the preferred so as to prevent inflationary pressure due to the import dependent nature of the Nigerian economy.

    “Moreover, we expect the present cashless policy may be extended to accommodate dollar and foreign currencies transactions such that foreign currency payment can only be made for smaller amount with all informal payments in foreign currencies reduced,” Afrinvest stated.