The Central Bank of Nigeria (CBN) has commenced plans to comprehensively “decongest” its head office in Abuja, the nation’s capital.
This initiative, contained in a circular dated January 12, 2023, from the director of the human resources department to all staff is designed to align with building safety standards and enhance office space efficiency.
The circular noted that the decision was prompted by safety concerns, increased health and accident risks, and the need to comply with building regulations, following repeated warnings from the facility manager and recommendations from the committee on decongestion of the CBN head office building.
With the current occupancy level exceeding the optimal capacity, the CBN plans to relocate 1,533 staff to other facilities within Abuja, Lagos, and understaffed branches. The move addresses critical challenges such as safety concerns, reduced efficiency, and potential compromise to the building’s structural integrity.
The decongestion is expected to improve operational and workflow efficiency through strategic alignment, skill distribution, embracing geographical mobility, and process optimization. Strategic alignment involves redistributing departments and staff based on the functions and objectives of the bank. This includes optimizing collaboration by placing certain departments in proximity to financial institutions’ head offices, predominantly located in Lagos.
Recognizing the importance of diverse and specialized talents, the CBN aims to distribute technical skills across all branches, addressing shortages at the branch level. Geographical mobility becomes a key focus, emphasizing staff rotations between branches to broaden perspectives, enhance adaptability, and foster collaboration.
The ongoing reorganization is not a random shuffle but a targeted effort toward process optimization. Collaboration with Branch Controllers aims to tailor department placement to the unique strengths and needs of each branch, enhancing overall operational effectiveness.
While change can be unsettling, the CBN is committed to keeping staff informed throughout the process. Individual notifications will be provided to affected departments and personnel by their respective directors.
However, some staff of the CBN see the planned decongestion as “a ploy to shed weight”.
A source told The Nation that some politically exposed staff of the bank have either resigned or been moved to locations outside Abuja. “More are already considering throwing in the towel because they cannot function well outside Abuja or Lagos”.
Already about 80 percent of the staff of the Banking Supervision Department of the CBN have been transferred to Lagos. The official reason is that the Head Offices of the banks they’re supposed to supervise are located in Lagos. Only a skeletal number of staff of the Department are left behind in Abuja.
The same has happened to the Payment System Management Department (PSMD) because “the department deals mostly with entities based in Lagos. The Payment System Management Department (PSMD) of the Central Bank of Nigeria (CBN) oversees various entities involved in the payment system.
Some of these entities include commercial banks, microfinance banks, payment service providers, mobile money operators, payment terminal service providers, payment solution service providers, and electronic money issuers. These entities play crucial roles in facilitating secure and efficient payment transactions within Nigeria’s financial system.
As part of the decongestion exercise, the Director Medical Services Department has been moved to the FSS Department in Maitama, a development that has many staff of the CBN questioning the rationale behind her movement.
Generally, there is anxiety amongst staff of the apex bank as every week staff are being transferred out of the Headquarters.
The circular reads: “This is to notify all staff members at the CBN Head Office that we have initiated a decongestion action plan designed to optimize the operational environment of the Bank. This initiative aims to ensure compliance with building safety standards and enhance the efficient utilization of our office space.
“This action is necessitated by several factors, including the need to align the Bank’s structure with its functions and objectives, redistribute skills to ensure a more even geographical spread of talent and comply with building regulations, as indicated by repeated warnings from the Facility Manager, and the findings and recommendations of the Committee on Decongestion of the CBN Head Office Building.
“The action plan focuses on optimizing the utilization of other Bank’s premises. With this plan, 1,533 staff will be moved to other CBN facilities within Abuja, Lagos and understaffed branches.
“Our current occupancy level of 4,233 significantly exceeds the optimal capacity of 2,700 designed for the Head Office building. This overcrowding poses several critical challenges:
1. Safety Concerns: The building’s infrastructure was designed for a specific number of occupants. Exceeding this capacity has raised safety concerns, increased health and accident risks – and hinders efficient emergency evacuation.
2. Reduced Efficiency: Crowded workspaces are negatively impacting productivity and collaboration. Additionally, overstretched facilities have led to increased maintenance costs.
3. Structural Integrity: The building’s integrity can be compromised by exceeding its designed capacity.
Decongestion will also improve our operational and workflow efficiency in the following ways:
1. Strategic alignment: The decision to redistribute departments and staff is rooted in a strategic approach to align the structure of the Bank with its functions and objectives. Certain departments may be better suited to operate in proximity to Financial Institutions’ head offices, which are predominantly located in Lagos. This strategic alignment ensures optimal collaboration and efficiency.
2. Skill distribution: The concentration of technical skills in the Abuja Head Office has led to a shortage at the branch level. Recognizing the importance of diverse and specialized talents across all branches, the reorganization seeks to redistribute technical skills to ensure that each branch has the necessary expertise for its specific operational needs.
3. Embracing geographical mobility: Given the CBN’s extensive network of branches across the nation, the reorganization also emphasizes the importance of staff rotations between branches. By experiencing new environments, stakeholders, and opportunities, staff members will broaden their perspectives, enhance their adaptability, and foster stronger collaboration across the organization.
4. Process optimization: The ongoing reorganization is not a random shuffle but a targeted effort towards process optimization. By collaborating with Branch Controllers, the Management aims to tailor the placement of departments to the unique strengths and needs of each branch, thereby enhancing overall operational effectiveness.
We understand that change can be unsettling, and we are committed to keeping you informed throughout the process and providing timely updates on the decongestion plan. Affected departments and personnel will receive individual notifications from their respective Directors.
By implementing this plan, we will: Improve the health and safety of all staff; Enhance productivity and collaboration; Extend the lifespan of the Head Office building; Optimize our resources and reduce costs; create a more comfortable and enjoyable work environment for everyone.
In the meantime, if you have any inquiries, kindly reach out to the Human
Resources Department at the following extension numbers:
> EXT: 16552
> EXT: 18314
> EXT: 16513
Thank you for your continued dedication to the Central Bank of Nigeria.
Finance and economy experts yesterday gave tacit support to dissolution of the boards of three banks and appointment of a new management by Central Bank of Nigeria (CBN), with a call for caution and fairness in the investigations into affairs of the banks.
Experts said the apex bank acted within its regulatory powers and possible information at its disposal, noting it is a core mandate of the apex bank to protect stability in the banking sector.
They, however, said the apex bank must be judicious and ensure fairness, equity and justice to stakeholders to make its actions more meaningful and less prone to negative interpretations.
Chartered Institute of Bankers of Nigeria (CIBN) reaffirmed its confidence in the reforms by the apex bank, assuring the public of safety of the banking system.
The CBN, on January 10 dissolved boards and management of Union, Polaris, Keystone and Titan Trust bank, citing non-compliance with Banks and Other Financial Institutions Act, 2020.
The apex bank yesterday appointed executives to oversee operations of the banks.
CBN’s Acting Director of Corporate Communications Mrs. Hakama Sidi-Ali, announced the appointments – Union Bank: Managing Director, Yetunde Oni, Executive Director, Mannir Ringim. Keystone Bank: Managing Director, Hassan Imam, Executive Director, Chioma Mangn. Polaris Bank: Managing Director, Lawal Akintola, Executive Director, Chris Onyeka Ofikulu.
The CBN stated that the appointments took effect immediately, emphasising its commitment to immediate action and minimising disruption.
According to the apex bank, the move to reinstate leadership in the affected banks demonstrates the CBN prioritisation of maintaining confidence and stability in the financial system.
The CIBN, in a statement by its Chief Executive and Registrar, Mr Akin Morakinyo, commended the reforms and reassured the public of safety and soundness of the banking system.
The CIBN urged the banking public to continue their transactions and activities without hesitation.
”CIBN will like to reassure the public that Nigerian banks remain strong and resilient and that the CBN is committed to ensuring a stable financial system,” the institute said.
CIBN stated that it would continue to support laudable initiatives of the CBN and stakeholders for a virile economy.
Managing Director, Centre for Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said CBN was in a better position to determine the scope and severity of infractions and regulatory breaches that have been committed.
According to him, the main pillar of the banking system is confidence and this makes the financial system sensitive to developments that could undermine the confidence of depositors and investors.
“This is why the handling of investigations concerning these banks need to be done with discretion, caution and care. We cannot afford a run on any of our banks at a time like this. The economy is still grappling with challenging macroeconomic headwinds.
“If there are proven infractions in the management or governance of the banks, discretion should be exercised in dealing with the situation to avoid negative signalling and risk to stability of the financial system. Meanwhile, it is comforting the CBN had assured depositors of safety of their funds. The shareholders also deserve to be assured of safety of their investments, without prejudice to the consequences of proven infractions or breaches of law. This is critical for preservation of investors’ confidence in the economy,” Yusuf said.
A senior investment banker, who craved anonymity, said the apex bank by virtue of its Act and BOFIA has powers to regulate banks and banking activities, including managing systemic and unsystematic risks.
“The decision to move against boards of these banks might be an attempt to grant unfettered access to investigators conducting investigations into allegations levelled against the banks and their owners. Leaving the present boards in place could give an opportunity for the ousted boards to stonewall the investigations. Secondly, appointing new boards could also be seen as effort to provide confidence to the public or other stakeholders that might be apprehensive as to what might happen to the banks post-investigation,” the leading financier said.
Managing Director, Highcap Securities, Mr. David Adonri, said removal of the boards could be a timely decision to forestall erosion of public confidence in the banks and the financial system.
“From information in public domain, the timely removal of the banks’ leadership was to prevent erosion of depositors’ and investors’ confidence in the banks which may culminate in systemic contamination of the industry.
“Banking is built on trust and integrity. It is driven by public confidence. The negative news that have been circulating around leaders of these banks were capable of causing serious reputational damage which the intervention of CBN sought to avert. So far, the interventions have only changed the banks’ leadership. Investors await further information from CBN concerning ownership acquisitions, which underpinned the regulatory intervention,” Adonri said.
Dr. Wahab Balogun of Ambosit Capital Managers described the CBN action as “swift,” noting the cited reasons for the actions, such as regulatory non-compliance, weak corporate governance, and potential threats to financial stability point towards serious lapses in the banks’ operations.
“This raises concerns about potential harm to depositors, financial stability, and trust in the banking system. Removing leadership deemed responsible for these issues can be a step towards correcting course and restoring stability. The swiftness of the action also sends a strong message about the CBN’s commitment to enforcing regulations and protecting the financial system,’’ Balogun said.
With regards to appointing CEOs and executive directors, Balogun said this ‘’provides immediate leadership and ensures continued operations for the affected banks and this helps maintain confidence and prevents undue disruption for depositors and employees’’.
‘’However, the qualifications and track records of the appointed individuals are crucial factors in determining the effectiveness of this move. Concerns remain about whether they possess the expertise and commitment to address the underlying issues in each bank’’, Balogun said.
Speaking on the impact of CBN’s decisions on recapitalisation, Balogun noted ‘’these events likely highlight the need for stricter risk management and governance practices within the banking system. This could lead to tighter regulations and more rigorous oversight during the upcoming recapitalisation exercise’’.
He warned that the recapitalisation process for the three banks might, however, face challenges due to the instability as potential investors may be hesitant to invest in banks with such issues, impacting their access to capital.
Managing Director, S &D Capital Management Limited, Mr Gbolade Idakolo, said ‘’the acquisition of bank follows stringent regulations among which are clear and unambiguous source of funds injection and a range of other regulations which the investors of these banks failed to adhere to based on the special investigation carried out on the banks”.
According to him, the CBN decision to sack the boards of these banks is the right step to ensure that investors do not manipulate the system to conjure non-existent or round tripped funds to acquire banking licences or take over banks with active collusion with CBN officials.
Former Executive Director, Keystone Bank, Richard Obire, said the CBN Act grants it powers to deliver on its mandate of maintaining a sound and stable financial system.
According to him, it appears to have acted on this occasion in furtherance of this mandate using the legal powers conferred on it.
On how the CBN could have handled the matter, better, he said: ‘’Possibly, as there are often different options available on how to better handle regulatory actions in pursuance of even the same objectives.’’
‘’Typically though, it takes the CBN some time and careful analysis of the information at its disposal before acting the way it has done. Optimal timing of its strict intervention also plays into the calculations’’.
Obire said there must have been some period of engagement by CBN with the banks concerned, and the action by CBN could have been assessed by it to be a last resort action.
On how investors may view the action, he said: ‘’Generally, investors desire a sound and stable financial system which can support business. So, if they judge that the CBN’s action is driving towards this objective, no negative fall-outs may be expected from their perspective. The action might even be viewed as positive and therefore produce a positive effect on investor sentiments’’.
On his part, President, Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, said the CBN exercised its power in relieving the bank chiefs of their jobs.
He said what the apex bank did is in the best interest of the banking sector, customers and the economy. He said although CBN has good evidence under which it acted, it should take it a step further by educating the public on the reasons for its action.
‘’This will reassure the customers that their funds in the banks are safe, otherwise doubts will begin to come in. But I believe the CBN would not, in its wisdom, take the action without strong reasons. I am also sure CBN would have sent bank examiners and supervisors to the banks, and set compliance deadline for them’’, he said.
Despite these steps, Ogubunka, former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), said the apex bank should continue to explain its actions to customers and stakeholders.
Also speaking, Nigeria Country Representative, European Organisation for Sustainable Development, Jide Akintunde, said a linear way to understand CBN’s action is that the bank chiefs had failed to adequately recapitalise the banks among other responsibilities he had.
He believed that the affected bank CEOs and board members earned their sack, adding that with the CBN replacing them, the new directors are expected to succeed where their predecessors had failed.
Still, he said it was the CBN that approved the appointment of the directors that it has now sacked.
“Therefore, it partly bears responsibility for their failure. One hopes that it exercised better judgement in appointing the new directors.
‘’This event has surely contributed to a sense of upheaval and uncertainty in the banking sector. This is not good for investor confidence and foreign investment flows into the banks and the economy. It is a negative development. But perhaps the CBN had to act, hoping the long-term impact would be positive even if in the short-term the market is spooked,’’ Akintunde said.
He said the likely negative impact of the action by CBN may not be better understood if its latest intervention in the leadership of the three banks is viewed as an isolated incident.
‘’But it may become clearer when the intervention is viewed in conjunction with other developments. In the week CBN sacked the directors of Union , Keystone, and Polaris banks, the Economic and Financial Crimes Commission (EFCC) invited some bank CEOs to answer questions in connection with investigations into allegations of misappropriation of budgetary funds for government’s social welfare programmes’’, Akintunde said.
He said the events were creating a spectacle, which is bad for the banking sector and for achieving relevant economic objectives.
‘’Essentially, I am saying that greater caution should be exercised by CBN and EFCC when dealing with issues involving the banks. A sense of a siege on the banking sector is not good for the economy’’, Akintunde said.
An ex-banker and financial analyst, Mr. Bolarinwa Odeyingbo, noted that the preservation of the integrity of a nation’s financial sector or institutions is crucial for maintaining transparency and trust in such a country’s financial reporting.
“The dissolution process of banks can help preserve the integrity of a nation’s financial institution section by ensuring that the banks’ financial records are properly maintained and preserved.
“The official receiver will always need to bear in mind the possibility that the records concerned may, although no longer required for the country’s purposes, be needed for other reasons, perhaps not directly involving the country,” Odeyingbo said.
He, however, warned that to ensure integrity of the banking sector, the dissolution of boards of the banks should be managed with care and attention.
“CBN will have to assess the systematic impact on the sector. This assessment of the expected adverse consequences for the financial system and the economy resulting from the failure should help identify and develop measures that mitigate the systemic impact of the banks’ failure,” Odeyingbo
The Executive Directors
•Chioma Mang, Keystone Bank’s Executive Director
Mang is a lawyer and corporate executive, who, in December 2020, became the managing director and chief executive officer of United Bank for Africa Limited. Uganda.
Prior to her current position, she served as managing director and CEO of United Bank for Africa’s subsidiary in Gabon.
She obtained a Bachelor of Law degree from the University of Reading, United Kingdom and an M.Sc from University College, London.
Chris Ofikulu, Executive Director, Polaris Bank
Ofikulu worked for Diamond Bank, one of Nigeria’s top commercial banks, before joining UBA Group.
There, he held several positions, including bHead of Directorate for South Businesses and Lagos and West Businesses.
In addition, Chris served as the first managing director of Diamond Pension Fund Custodian Limited.
Ofikulu has an MBA from University of Lagos and a BSc (First Class) in Industrial Mathematics from University of Benin. He also attended business schools as Lagos Business School, Pan-African University; IESE Business School, University of Navarra, Barcelona; and Wharton Business School, Philadelphia in the United States.
Mannir Ringim, Executive Director, Union Bank
Before his appointment, Ringim was deputy general manager/regional Head of North West 1 Bank, Fidelity Bank Plc.
He has held this position since 2020.
The CEOs
•Hassan Imam, Keystone Bank CEO
Hassan Imam has assumed the position of Chief Executive Officer (CEO) at Keystone Bank Limited.
Imam succeeds Olaniran Olayinka, who became the chief executive officer and managing director of the bank in March 2020.
With 25 years of comprehensive experience in various facets of banking, Imam has consistently used his expertise to enhance market share across critical sectors.
He holds a Bachelor’s degree in Economics and two Master’s degrees, including an MBA. Imam attended Business School, Netherlands, and is a member of the Chartered Public Accountant.
Imam began his banking career at FSB International Bank in April 1998.
He was the former Executive Director of the North Directorate at Fidelity Bank.
His extensive career includes notable positions as General Manager and Regional Bank Head for Abuja at Fidelity Bank.
He attended renowned institutions, such as Harvard Business School, IESE Business School, and Wharton Business School.
Yetunde Oni, Union Bank CEO
Yetunde Oni, the new CEO of Union Bank has experience spanning 25 years.
Known for her role in originating client solutions, managing teams, and talent development, Oni is recognised as a tenacious leader with a track record of navigating complex business decisions.
She replaces Mudassir Amray
Oni got her first degree in Economics from the University of Ibadan in 1991 and underwent Executive Training at Oxford University in 2016.
She obtained an MBA from Bangor University in 2020
Oni started her banking journey with Prime Merchant Bank’s Treasury & Money Markets Group from where she joined Ecobank Nigeria as a Relationship Manager in the Institutional Banking Group for 11 years (1994 – 2005).
In January 2005, she joined Standard Chartered Bank Nigeria, assuming the role of Senior Account Relationship Manager in the local corporation segment.
Before her managerial appointment with Union Bank, she operated as the first female Managing Director and Chief Executive Officer at Standard Chartered Bank in Sierra Leone, a position she took in January 2021.
Lawal Akintola, CEO, Polaris Bank
Lawal Akintola was the MD/CEO of Fractional Investment Services Limited, a real estate company before he was appointed chief executive officer of Polaris Bank.
He also held the position of executive director of corporate and investment banking at Sterling Bank Plc before setting up Intermediate Equity Partners Limited.
Akintola has over 30 years of experience in the banking industry, with insight into key sectors, such as oil and gas, telecommunications, manufacturing, and other infrastructural projects.
He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), a member of the Chartered Institute of Taxation of Nigeria (CITN) and the Chartered Institute of Bankers of Nigeria (CIBN).
He is also an alumnus of the Lagos Business School, the Columbia University Graduate School of Business and University of Oxford.
The removal of restrictions on cryptocurrency by the Central Bank of Nigeria (CBN) is anticipated to enhance economic growth, according to Ayotunde Bally, the Chief Executive Officer of Arvofinance.
The fintech company boss declared on Thursday, January 11, in Lagos.
Bally stated: “I’m relieved to see the lifting of the cryptocurrency trading ban by CBN. This reversal aligns with my belief that embracing such technologies can benefit Nigerians. The new policy has the potential to provide economic growth, offering citizens more financial opportunities.”
To guarantee sustainability and investor confidence, the CEO emphasized the need for strong regulatory frameworks even as he acknowledged the significance of responsible and well-regulated implementation.
The Nation reports that the Central Bank of Nigeria (CBN) directed all banks to desist from transacting in and with entities dealing in cryptocurrency.
It also directed banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.
This directive was contained, in a circular dated February 5, 2021, signed by the Directors, Banking Supervision and Payments System Management, Bello Hassan and Musa Jimoh respectively, and communicated to deposit money banks (DMBs), Non-bank financial institutions (NBFIs), and other financial institutions (OFIs).
The circular stated: “Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.
Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”
Due to the risks and weaknesses associated with money laundering and terrorist financing (ML/TF), as well as the lack of laws and consumer protection safeguards, the restriction was imposed.
In May 2023, Nigeria’s Securities and Exchange Commission (SEC) subsequently, released regulations about digital assets, indicating that the continent’s most populous nation was attempting to strike a compromise between a complete prohibition on crypto assets and their uncontrolled usage.
However, the CBN in another circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003 and signed by its Director, Financial Policy and Regulation Department, Haruna Mustafa lifted the ban on cryptocurrency transactions in the country.
The apex bank in the circular titled ‘Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS),” instructed commercial banks to jettison its previous instruction on crypto transactions.
The Central Bank of Nigeria (CBN) has disbursed about $61.64 million to foreign airlines operating in the country in a move aimed at reducing the foreign exchange (forex) backlog and easing the pressure on naira.
Acting Director of Corporate Communications, Central Bank of Nigeria (CBN), Mrs. Hakama Sidi Ali, who confirmed this development, described it as a welcome relief to foreign airlines grappling with delayed forex access.
She said the latest disbursements formed part of the CBN’s commitment to settling outstanding valid transactions.
This targeted disbursement, aimed at clearing a portion of the backlog of matured foreign exchange obligations owed to the airlines, marked a significant step towards stabilising the country’s forex market and boosting investor confidence.
The CBN’s commitment extends beyond just the airlines. In the past three months alone, the apex bank has redeemed a staggering $2 billion in outstanding forward liabilities, to show its dedication to resolving pending obligations and fostering a functional foreign exchange market.
These measures are expected to have a ripple effect by alleviating the current pressure on the naira’s exchange rate, as well as enable a considerable strengthening of the naira against major world currencies as a result of the CBN’s intervention.
The CBN believed that this would likely bolster investor confidence in the economy, paving the way for increased investment and economic growth.
“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate.
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigerian economy,” Mrs Ali said.
In a move intended to send the Naira soaring, the Central Bank of Nigeria (CBN) has injected approximately US $61.64 million into the hands of foreign airlines operating in the country.
This targeted disbursement aimed at clearing a portion of the backlog of matured foreign exchange obligations owed to the airlines, marks a significant step towards stabilizing the country’s forex market and boosting investor confidence.
The Acting Director of CBN’s Corporate Communications Department, Mrs. Hakama Sidi Ali who confirmed this development, described it as a welcome relief to foreign airlines grappling with delayed forex access.
This latest disbursement forms part of the CBN’s broader commitment to settling all outstanding valid forward transactions, as Mrs Sidi Ali emphasised.
The CBN’s commitment extends beyond just the airlines. In the past three months alone, the Apex Bank has redeemed a staggering US$2 billion in outstanding forward liabilities, to show its dedication to resolving pending obligations and fostering a functional foreign exchange market.
These measures are expected to have a ripple effect by alleviating the current pressure on the Naira’s exchange rate, as well as enable a considerable strengthening of the Naira against major world currencies as a result of the CBN’s intervention.
The CBN believes that this is likely to bolster investor confidence in the Nigerian economy, paving the way for increased investment and economic growth.
According to Hakama Sidi-Ali, “These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate.
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.”
Beneficiaries of the Federal Government’s schemes to mitigate the effects of the COVID-19 pandemic have been reminded of the need to commence repayment of the various loans received by them.
Funds for the schemes – Targeted Credit Facility (TCF) and Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS) – were provided in 2020 by the Central Bank of Nigeria (CBN). They were disbursed by NIRSAL Microfinance Bank (NMFB).
NMFB, in a statement yesterday, said beneficiaries should understand that the lifelines were loans and not grants.
It said the reminder became necessary due to rumours circulating among the beneficiaries.
NIRSAL MFB’s statement by Halimatu Lawal Idris Omar, Head, Corporate Communications, explained that the TCF beneficiaries had a 36-month window period to repay while those in the AGSMEIS category were given 60 months.
It warned that defaulters cannot escape as Global Standing Instruction (GSI) had been activated for deductions from their accounts in Nigeria and abroad.
The GSI is “a last resort by a creditor bank to recover past due obligations (principal and accrued interest only, excluding any penal charges) from a defaulting borrower through a direct set-off from deposits/investments held in the borrower’s qualifying bank.”
The statement reads: “Despite offering an additional year, many borrowers have defaulted in their repayment schedules .
“This repayment schedules inclusive of the Moratorium is 36 months for Targeted Credit Facility (TCF) while for the Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS), it is 60months inclusive of moratorium.”
“As a result, NMFB has launched a proactive Recovery Campaign through its social media platforms to remind and educate beneficiaries about the consequences of defaulting on their loans.”
The bank added that it had been communicating directly with beneficiaries to dispel rumours of intermediaries or agents representing the bank.
It said: “It is important for beneficiaries to understand that the Global Standing Instruction (GSI) allows the bank to debit accounts in other banks to settle defaults. This policy, authorised by the CBN, is one of the legal recourses available to the bank for loan recovery.
“NMFB is now encouraging beneficiaries with genuine concerns about repayment to approach the bank for evaluation and further discussion about their loan status.
The bank’s website contains valuable information to facilitate smooth repayment of the loans.
“We urge beneficiaries to report individuals claiming to be agents of the bank to the appropriate authorities. A Whistleblower portal has been set up for this purpose.”
NIRSAL Microfinance Bank (NMFB) has clarified that the intervention facilities provided by the Central Bank of Nigeria (CBN) were not grants, contrary to rumours circulating among beneficiaries.
The bank stated in Abuja on Thursday, January 4, responding to speculations and reminding borrowers of their repayment obligations.
NMFB noted that “despite offering an additional year to the initial one-year moratorium, many borrowers have defaulted on their repayment schedules.”
This includes the 36-month moratorium for the Targeted Credit Facility (TCF) and the 60-month moratorium for the Agricultural, Small, and Medium Enterprise Investment Scheme (AGSMEIS).
As a result, NMFB has launched a proactive Recovery Campaign through its social media platforms to remind and educate beneficiaries about the consequences of defaulting on their loans.
The bank added that it has also been communicating directly with beneficiaries to dispel rumours of intermediaries or agents representing the bank.
“It is important for beneficiaries to understand that the Global Standing Instruction (GSI) allows the bank to debit accounts in other banks to settle defaults. This policy, authorized by the CBN, is one of the legal recourses available to the bank for loan recovery” the statement read.
NMFB is now encouraging beneficiaries with genuine concerns about repayment to approach the bank for evaluation and further discussion about their loan status.
It said: “The bank’s website contains valuable information to facilitate smooth repayment of the loans.”
The bank urges beneficiaries to report individuals claiming to be agents of the bank to the appropriate authorities, and a whistleblower portal has been set up for this purpose.
Ultimately, NMFB emphasized that honouring repayment commitments is the most prudent action for beneficiaries, as evasion is not a viable option. The intervention loans provided by the CBN were specifically tailored to mitigate the impact of the COVID-19 pandemic, sustain businesses, and strengthen the economy.
Our collective persona as a nation is reflected in the governor who once stole $4.2 million from his state’s coffers and stashed it to fund his vanities abroad, not minding what good such loot could do in resolving the educational, healthcare, and infrastructure woes of his state.
It is reflected in the shenanigans of the Central Bank of Nigeria (CBN) governor who is seeking a plea bargain to escape punishment over a 20-count charge over alleged conspiracy to perpetrate procurement fraud running into billions of naira, among others.
It is reflected in the former female Minister of Petroleum, who raped Nigeria silly until we suffered the industrial strokes of scarcity and recession. Yet she frantically fights to walk free and her cronies are eager to let her off with a pat on the back. Thus the protracted drama of her prosecution at home and abroad.
Lest we forget the governors looting billions of naira via “security votes and hyperbolic capital projects, outrageous life pensions, among other frills, even as poverty, policy failure, and insecurity devastate the citizenry and crucial social institutions on their watch.
Our collective personae flourish in the antics of youths feverishly flying ethnic flags in support of their ‘brother’ and ‘sister’ lawmaker, governor, minister, and ex-CBN governor irrespective of the atrocities committed by them and the criminal charges levelled against them.
Public officers in the executive, legislature, and judiciary embody our frantic culture of dubious citizenship. They legitimise our culture of being, which enables and justifies a public officer’s immediate descent into a basement of opportunism right after emerging as an elected representative.
The latter locks himself or herself in that amoral cellar, against the ethical rungs and wise counsel of sterling statesmanship. As the citizenry sinks in wretchedness, he embarks on a quest of inordinate acquisition and counts his spoils in material possessions.
He is, however, a mere fragment of our bigger cultural dilemma. Think of him as the pointed end of the spear of our culture of greed, feverish pillaging, and criminality, in whom the triggers of consequence-free theft, sponsored violence, ethnoreligious carnage, gender, and sexualised menace are fused.
In concert with fellow wild personae prowling Nigeria’s corridors of power, he reinvents, with creative malice, the penetrative outcrops of our national maelstrom. Optimists would call them salvageable ogres from our dark, primal aspects but their cruelty attains deeper resonance in their manifestation as poster icons of our corrupted personae.
They are our decadence. Our disease. Like the millions of citizenry they supposedly represent, they are products of our moral void, the sickly stems bearing our poisonous petals. Little wonder we suffer a carnage of incarnations.
Yet even as we have rightly identified their emergence as an affliction of the eye and disease of the mind, our chances at healing are hindered by chinks in our surgical armour: the fissures of ethnoreligious bias, illiteracy, willful degeneracy, greed, poverty, savage ego, and sheer malevolence.
These constitute severe impediments to our healing. Thus, as usual, we corrupt the debate on our complicity. We should be discussing and taking decisive steps to rid governance of their savage afflictions but they continually hoodwink Nigerians into a thick emotional fog over several issues of governance and nationhood.
At the slightest prompt, the citizenry engage each other in intense bickering, often in defence of their ethnic brothers and sisters, irrespective of the latter’s misdemeanour. The people fall for their gimmick, threatening war and secession from the Nigerian enterprise in solidarity with their dubious representatives.
It’s a familiar scene, a Nigerian reality that often resounds like the fable of the doomed Odysseus and the labouring ships.
In the backdrop of these shameful proceedings, the argument persists in academia, social and political circuits, that the future is blurry and bleak due to youth absence in politics. But the youth had been in politics as armed thugs, assassins, arsonists, and internet trolls for several years.
Lest we forget our more ‘youthful men and women in their 60s, 70s, and 80s control the country’s ruling party, the All Progressives Congress (APC), and major opposition platform, the People’s Democratic Party (PDP).
Their clannish pride bequeath the country’s leadership to their wards to sustain their legacies even as they draft boondocks young as cannon fodder and enforcers of their never-ending cycle of sleaze and mayhem.
But the youth are hardly the prey they are thought to be. They are often willing participants in a dehumanising ritual of violence and bloodshed.
This minute, the image persists of the nation’s youth as dispensable tools of specific and random politicians. Unlike the artist’s immobile masterpiece, sculpted in bronze and stone, such youths evolve like plasticine, easily malleable and amenable to devious plots.
Some have attributed their afflictions to structural banes and the perverse culture of citizenship by which they are weaned and ushered into adulthood.
In the wake of plausible and often far-fetched analyses, too many ‘patriots’ conveniently absolve themselves of blame. Some propound the tragic theory of Nigerians as being innately incapable of self-determination and self-governance.
These arguments have over time attained a language of their own and thus evolved as a dialect of dissent and exaggerated self-abnegation. The nation’s elite frequently marshals clashing precepts as solutions and in condemnation of the status quo according to their biases.
A more damning view identifies the youths’ persistent claims of victimhood as a consequence of their sense of entitlement. Between hyperbole and informed sophistry, Nigeria suffers the affliction of intellectual miscreants and promising youth-turned-fetal-adults.
The coordinated tragedies afflicting our consciousness daily, append the only real structure to our lives as impoverished Nigerians. From burdensome realities of fast-slipping youth, and recurrent rites of bigotry to the ethical quandary of coping with strict moral codes of adulthood and ideal society, our lives obscure in purpose and meaning.
Thus the scorning of ethics by the youths for fast, illicit riches even as ripples of their actions keep hundreds of millions more in binds of despair.
Consequently, the revolutionary dissent that sprouts from oppression is pitiless and unbending. It radically splits our world into ‘insensitive ruling class’ and ‘clueless lower class,’ ‘elite’ and ‘downtrodden,’ ‘haves’ and ‘have-nots.’ It fosters even more fragmented discord that continually pits Nigerian Christians against Muslims, Hausa against Igbo, Igbo against Yoruba, and Itsekiri against Urhobo.
While this piece too may resound as hackneyed howl and lamentation, it needs to be said that our ultimate solution lies in our will to effect true change.
Can any of the existing political parties foster a progressive nation? Pundits aver that they are programmed to a recurring cycle of self-destruct and rebirth while showing occasional flashes of brilliance and daring against familiar odds. But it’s all smoke and mirrors.
Greening the Nigerian pasture is not achievable in a sprint or marathon. Think of it as a cross-country run. It is not a race winnable in four years. But who cares?
As we advance, President Bola Tinubu’s administration must rid Nigeria of a culture of public governance dependent on administrative corruption and lifeboat solutions. To truly empower the citizenry, his administration must actualise a stable electricity supply and a better road and marine infrastructure; he must also revive the agricultural economy, and get the refineries working.
Systems thrive by their human elements thus Nigerians humanise our systems and dehumanise them. The President must also be wary of the human factors that hinder the successful implementation of most policies and Social Intervention Programmes (SIPs).
The Central Bank of Nigeria (CBN) has dismissed rumours suggesting a possible government takeover of Union Bank, Keystone Bank, and Titan Trust Bank – all under the regulatory purview of the CBN.
In a statement signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, the CBN refuted these assertions and underscored the robustness and security of the banking landscape.
“These reports have not originated from the CBN,” emphasised the statement, cautioning the public against undue alarm due to unverified information. It reiterated the CBN’s unwavering dedication to its mandated responsibility of upholding a resilient and secure financial system within Nigeria.
Confident of the safety of funds entrusted in financial institutions, the CBN stated added: “We guarantee the safety of the public and depositors’ funds.”
Encouraging regular banking activities without concern, the CBN affirmed there is no cause for apprehension.
The statement reads: “Central Bank of Nigeria (CBN) has noticed reports, in certain media outlets, about a recommendation for the Federal Government to take over some CBN-supervised financial institutions.
“For the avoidance of doubt, Nigerian banks remain safe and sound. The CBN encourages the public to continue their regular activities without being alarmed by reports that have not emanated from the CBN about the health status of Nigerian banks.
“The CBN is fully equipped to carry out its statutory duty of upholding a stable financial system in Nigeria. We assure the general public and depositors about the safety of their funds in Nigerian financial institutions.
“Bank customers are therefore advised to proceed with their banking transactions as usual, as there is no cause for concern.”
So, Christmas has come, but the Christmas spirit should not be ‘gone’ just because ‘December 25’, is gone. It is obvious this is the first Christmas/New Year with this new version government, aka APC 2, of a 2015-2023 previously in power political party aka APC 1. Many Nigerians cannot understand why APC 1 has not apologised for unleashing several kleptomaniacal scandalous actors in high places, and the immediate past ‘CBN cabal’ on Nigeria. Granted that the APC 1 Buhari government inherited some, but not all, of the failed high office holders from the PDP 3 Johnathan government.
In the light of the Emefiele CBN investigation revelations, probably leaked to prevent it going missing and before it is laundered into a clean copy, it is clear that, moving forward, the country desperately requires a leadership willing to audit its top and middle level staff to ensure citizenry-beneficial activities.
Why do governments make it a habit of offering second terms of office to senior office holders of unproven fiscal and moral responsibility, who break simple laws applicable to all business in Nigerian- an AUDITED ANNUAL ACCOUNT? These laws are designed to prevent the thought of fraud and detect fraud early before it crippled the ‘company’, in this case the citizenry and country?
Surely when a high office candidate comes up for tenure renewal, there should be a detailed FORENSIC account of stewardship, reviewed by an honest government panel- if available. Government must enforce its sworn obligation and administrative responsibility not to REAPPOINT ANYONE FOR A SECOND TERM WITHOUT A FORENSIC AUDITOR’S REPORT AND A PROGRESS REVIEW. Nigeria should know that, had this review been diligently executed in every case by APC 1 and the previous PDP governments, savings in multiple billions of naira would have been made by reducing the size of ‘ACHIEVABLE FRAUD’ involving ministers, accountants and auditors general and heads of MDAs- ‘MEMBERS OF THE N100+BILLION FRAUD CLUB CABAL’.
There are many new meanings of the acronym CBN following the ‘leaking’ of the devastating CBN Investigation Report. Every Nigerian has incurred major financial, income, business, emotional, social status negative impact with many lives lost to the corrupted cashless policy and precipitous fall on the naira crippling access to food, healthcare and drugs. Historically, The Presidency, NASS, and CBN all have a traditional track record of poor support for the Naira value. Ngozi Okonjo-Iweala said as much when NASS shot down a Sovereign Wealth Fund start-up. Corrupt Bank of Nigeria or Cancerous Bank of Nigeria are alternative names as the actions of the key personnel have had severe, life-threatening, and life-shortening effects on every Nigerian – direct manifestations of the mismanagement at CBN.
CBN is probably the most important government institution to Nigerians. Those entrusted with control of such an important national asset as CBN, should realise that it should be immune from or protected from and above the evil proclivities of any group of individuals practicing anti-country activities. We the people employed them by proxy through the presidency and the National Assembly and therefore the Presidency and the National Assembly in APC 1 have culpability and responsibility to us for the fraud at CBN. The CBN’s past excellent reputation was built under the supervision of dedicated Boards of Directors led by great men sadly followed by some not-so-great men who allowed the naira to depreciate under pressure.
We know banks worldwide even in 2023, managed by Nigerians who have deservedly achieved fame. We pray the new CBN governor will guide us through the inherited quagmire and lead the naira to rock-based ground. Amen.
Nigeria must stop appointing high officials and then abandon them to their corruption-driven devices for four or five years – and then renewing their evil appointments. Unchecked, even a saint will be tempted to steal. Such abandonment has led to impunity, arrogance and ‘Mentally Unstable Corruption’ in 100s of millions of naira. Nigerians are tired of spending lifetimes working hard to make Nigeria great only to have our lives, livelihoods and even pensions and potential earnings decimated by the mega-corruption of a few. THE CRASH IN CURRENCY VALUE IS MORE CORRUPTION DRIVEN THAN MARKET FORCES DRIVEN. Now we are approaching N1200:$1 rubbishing the lives of all non-stealing Nigerians.
We hear of a former minister on trial in a UK court who has accused a former private bank director, now a state governor, of holding on her behalf ‘MENTALLY UNSTABLE MONEY’ -MUM – A new dis-honour in Nigeria. If true, it is one more multibillion naira/dollar scam crippling the naira. Add refinery scams, old and new.
Nigeria has been pillaged, raped and robbed post-colonially. APC 2 Tinubu must stop corruption in government ranks. The EFCC and ICPC are post-crime investigators and giving away half of the stolen assets in a plea bargain is a crime against the people. A plea bargain is around the type of charges and potential jail sentence time and the not the return of stolen loot which must be 100% total. Presidency must enforce PREVENTIVE CRIME MEASURES- AUDITS, quarterly and annual, FORENSIC AUDITS AND MORE MONITORING CONTROL. OFFER ONE TERM to key appointments to reduce fraud and give more Nigerians the opportunity to save this struggling ship of state. All Nigerians including APC 2 Tinubu & CBN must pre-emptively identify and kill corruption at source, not after four, five or eight years in office.
HAPPY NEW YEAR 2024. MAY WE BE INVISIBLE TO THE ENEMY. AMEN
