The Nation Newspaper

Tag: cbn

  • Fintech conference holds January

    THE second edition of Fintech annual conference will hold between January 24th – 26th January, 2018 in Lagos.

    The first edition which was held in April 2017, drew participants from various industries and countries.

    According to the organizers of the event, “the 2nd National Fintech conference promises to herald contemporary thinking and developments in financial technology.

    The conference will feature high-profile speakers/subject matter experts and innovative start-ups within the fintech space.

    Unlike the first edition, the second edition will feature Nigerian Fintech Awards Night and the official launch of Fintech Association of Nigeria.

    The conference programme will include a dialogue on the African FinTech ecosystem and panel discussions on regulations and compliance as Nigeria takes the crown as the FinTech Hub for Africa. Key stakeholders such as government officials, business leaders, regulators and academics will attend.

    The panel of experts will also include: , Founder CEO, Harvesting Inc Ruchit G. Garg; Investment Officer, Accion Venture Lab, Ashley Lewis; Co-Founder & President, Ovamba Solutions, Inc,Viola A. Llewellyn;, Co-Founder, FinTech Stage,  Lazaro Campos.

    Digital Finance Institute, Ecobank, Zenith Bank, GTBank, CBN, Systemspecs, vatebra, ACCION, FSDH, echoVC, Asoko Insight, Mastercard, Proshare, Banwo and Ighodalo, Deloitte, Paga, Soft Alliance Limited and many other companies were among those participated at the 1st edition.

  • CBN tasks investors on job, wealth creation

    CBN tasks investors on job, wealth creation

    The Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has urged the private sector to support the Federal Government’s efforts at increating jobs and stimulating growth of the Nigerian economy.

    The CBN’s Acting Director, Corporate Communications, Mr Isaac Okorafor, in a statement on Wednesday in Abuja, said that Emefiele made the call at the Blueband Factory launch organised by the Unilever in Agbara, Ogun.

    Emefiele also pledged the CBN’s continued support for companies committed to the objective of job-creation.

    He said that there were many Nigerian youths whose potential could be harnessed to strengthen the industrial base of the country.

    The CBN governor recalled the practice in time past when companies tested and offered jobs to the brightest among fresh graduates of different disciplines before they proceeded for their national youth service.

    He said that a vast number of Nigerian youths was hardworking and willing to contribute their quota to the development of the country.

    The CBN governor also commended the management of Unilever Nigeria Plc for heeding the bank’s call to return to Nigeria and build a world class plant after the foreign exchange restrictions on some 41 items, including margarine.

    Emefiele said the policies of the apex bank and its aggressive intervention in the inter-bank foreign exchange market management had ensured transparency in the foreign exchange market.

    Read also: CBN, Dickson, others laud Mosilo Bayelsa Rice Outgrowers Scheme

    With a population estimated at about 180 million people, the CBN governor said Nigeria was a ready market for investors and was indeed ready and open for business.

    He, therefore, reiterated his call to investors to take advantage of the opportunities in Nigeria by bringing more investments  into the country.

    Emefiele, however, cautioned that Nigeria, with the population growing at an average of three per cent per annum, had to focus on growth and prosperity if it would transform its population into assets.

    “We must plan to feed our growing population so it does not become a disadvantage,” he said.

    Earlier, the Executive Vice President of Unilever Ghana and Nigeria, Mr Yaw Nsarkoh, lauded the CBN for supporting the company to achieve its goal of setting up the plant in Nigeria and boosting capacity in Africa.

    While urging investors to disregard negative stories about Nigeria, Nsarkoh noted that businesses must be part of the solution to thriving communities.

    According to Okorafor, the high point of the event was an inspection of the new Blueband factory by the CBN governor and other guests.

    NAN

  • CBN pumps $210m into forex market

    CBN pumps $210m into forex market

    The Central Bank of Nigeria (CBN) yesterday injected $210 million into the foreign exchange market to sustain its liquidity.

    CBN Acting Director, Corporate Communications Department,  Isaac Okorafor said $100 million was offered to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment got  $55 million. The invisibles segment comprising of tuition fees, medical payments and Basic Travel Allowance (BTA), among others was also allocated $55 million.

    He said the releases to successful bidders, which have since been concluded, are part of effort aimed at further enhancing ease of doing business in Nigeria. He explained that beside boosting liquidity in the forex market, facilitating trade and  remittances for legitimate personal commitments are also expected to improve tremendously.

    Speaking on market conduct, Okorafor urged authorised dealers to abide by the extant rules of the forex market as CBN would continue intensify monitoring of the market.

    He said the naira maintained its steady rate against the United States dollar, exchanging for N361/$1 in the bureau de change segment of the market.

    Meanwhile, Okorafor has also urged Nigerians to take advantage of the various development initiatives of the CBN in agriculture and small and medium enterprises to curb youth restiveness.

    He spoke at the CBN sensitisation programme in Port-Harcourt, Rivers State.

    He said the CBN fair is an interactive forum aimed at explaining policies, programmes and initiatives of the bank as well as providing means of getting redress on issues in which the public felt short-changed in dealing with deposit money banks and the activities of the CBN.

  • CBN pumps $210m into Forex market, dollar exchanges for N361

    CBN pumps $210m into Forex market, dollar exchanges for N361

    The Central Bank of Nigeria ( CBN ) has opened the foreign exchange market with the injection of another $210,000,000 to sustain liquidity. 

    Disclosing this to news men in Abuja on  Tuesday, the Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor the sum of $100m was offered to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment got an allocation of $55 million. 

    The invisible segment (i.e. tuition fees, medical payments and Basic Travel Allowance (BTA), among others) was also allocated $55 million.”

    The Acting Director noted that the releases to successful bidders which have since been concluded are part of effort aimed at further enhancing ease of doing business in Nigeria.

    According to him, beside boosting liquidity in the forex market, facilitating trade and remittances for legitimate personal commitments are also expected to improve tremendously.

    Speaking on market conduct, Mr Okorafor enjoined authorized dealers to abide by the extant rules of the forex market as CBN would continue intensify monitoring of the market. 

    Meanwhile, the naira maintained its steady rate against the United States Dollar, exchanging for N361/$1 in the BDC segment of the market on Tuesday, December 5, 2017.

  • Rates parity likely as N307 exchanges for dollar

    Rates parity likely as N307 exchanges for dollar

    The Central Bank of Nigeria (CBN) has weakened the naira marginally, selling the dollar at N307  for the first time on the official interbank market. To traders, this could signal a gradual move to merge the CBN’s multiple exchange rates.

    Nigeria’s convoluted exchange rate system has been used to manage what the CBN described as “frivolous” demand for dollars at the peak of a currency crisis which began two years ago.

    Nigeria now has at least five exchange rates, including the official one which the bank used to mask the pressure on the currency. In April,  it allowed foreign investors to trade the naira at market determined rate, which has weakened the currency to around 360.

    The bank has sold $500,000 almost  daily on the official spot market since creating several exchange rates to alleviate dollar shortages. It sold the currency at between N305 and N306 for months before yesterday’s move.”It’s possible the central bank is working towards a gradual convergence of rates, one trader told Reuters.

    Earlier this month, the bank sold the dollar at N306 for the second time after maintaining a level of around N305 on the spot market for two months.

    Dollar shortages gripped Nigeria’s economy as crude sales, Nigeria’s mainstay, plunged at the start of an oil price rout in 2014. That triggered a recession last year and frustrated businesses, which had to find dollars on the black market as a result.

     

  • Emefiele is best CBN Governor ever, says Ovia

    Emefiele is best CBN Governor ever, says Ovia

    Zenith Bank Plc Chairman Jim Ovia has described Godwin Emefiele as the best governor the Central Bank of Nigeria (CBN) has ever had.

    Ovia spoke at the 47th convocation of the University of Nigeria, Nsukka (UNN) in his acceptance speech on the conferment of Honorary Degree of Doctor of Business Administration (DBA) (Honoris Causa) on him by the university. Ovia and Emefiele are alumni of the UNN.

    Ovia described Emefiele as one of the shinning lights of UNN who had continued to make the institution proud.

    He said Emefiele’s achievements at the CBN had put him ahead of his peers.  “As the present Governor of the Central Bank of Nigeria, Godwin Emefiele’s performance and current results arguably puts him as the best central bank governor in the history of Nigeria. These performances are no doubt due to the excellent training he received at the University of Nigeria, Nsukka,” he said.

    The Zenith Bank Chairman said Emefiele’s tenure as the Chief Executive Officer and Group Managing Director of Zenith Bank Plc was marked by excellent performance and growth in profitability for the Tier-1 lender.

    “I can attest that this university is indeed a training ground for capable, committed, and compassionate change agents, having witnessed firsthand, the quality of a product of this institution, in the person of Dr. Godwin Emefiele, who was the Chief Executive Officer and Group Managing Director of Zenith Bank Plc., between July, 2010 and May, 2014. During which time the bank witnessed exponential growth and phenomenal profitability,” he said.

    The Zenith Bank chairman said: “I am truly honored and humbled to accept this honorary doctoral degree from the great Den of the Lions – the University of Nigeria, Nsukka – on this auspicious occasion of your 47th convocation ceremony. In this regard, I sincerely thank the Vice Chancellor, the Council and the Senate of this great and noble institution for bestowing on me this Honorary Doctoral Degree of Business Administration,” he said.

    He described UNN as a center of excellence and institution that has produced industrious individuals in the private as well as public sectors of this country. The UNN, he added, remains a training ground for change agents and highly successful leaders of thought.

    “In my role at the helm of one of the leading financial institutions in the country, I have had the privilege of meeting several alumni of this great university. The “Lion” appears as a symbol of strength on the university banner. In reality and particularly in the corporate steeple chase, the lions have always devoured their prey and beaten their competitors to the game. I’m always lucky to be on their side,” he stated.

  • Ex CBN deputy governor visits Emir of Kano

    Former Central Bank of Nigeria (CBN) Deputy Governor, Financial System Stability, Prof. Kingsley Moghalu has paid a courtesy visit to the Emir of Kano, Muhammadu Sanusi II.

    Moghalu, who is the founder of the Institute for Governance and Economic Transformation (IGET), called on all Nigerians to place a premium on purposeful leadership and national unity. These, he said, would create better and equitable future for the country.

    “We have made this trip in the spirit of unity and friendship. As an indigene of Nnewi, Anambra State, we were all witnesses to the deep history that Anambra and Kano share: the  longstanding traditions concerning the role of royalty in maintaining unity in Nigeria. After contributing massively to the economic development of our great country, I also commend the Emir for returning home to continue this wonderful tradition,” he said.

    In Moghalu’s delegation were a former Minister of Health, Prof. A.B.C Nwosu; former  CBN Director of the Consumer Protection Department,  Faruq Shehu; Colonel Charles Onwujuba (rtd.) and Deputy Director, CBN, Muazu Lere.

    The Emir praised Moghalu for his work and success since concluding his tenure at the CBN, especially in thought leadership, the academics and public policy.

    Since leaving Nigeria’s apex bank, Moghalu has been a professor of International Business and Public Policy at the Tufts University in Massachussets, United States of America and also established IGET last year.

  • Reps go after CBN, NDIC, banks over NERFUND’s N17b debt

    The House of Representatives has commenced the investigation of Central Bank of Nigeria (CBN) over the failure of the National Economic Reconstruction Fund (NERFUND) to recover over N17 billion owed it by small and medium scale enterprises’ owners.

    In addition, while the Nigerian Deposit Insurance Corporation (NDIC) was expected to assist the investigation with its roles over the recovery of the debt, some money deposit banks would have to shed light on what was responsible for the debt that has led to the near extinction of the fund.

    The mandate of the fund to galvanise the economy was to provide loans for Small and Medium Enterprises (SMEs) through participating banks but the huge debt has led to a planned shutting down of the activities of the fund by the Federal Government.

    The House  has, however, said that shutting  down the activities of NERFUND by fiat is inappropriate in a democracy.

    Though the House had earlier called for the suspension of the planned shutdown, the  lawmakers said they will rather take a critical look into the events that led to its over N17 billion debt.

    Speaking yesterday at the inaugural meeting of the 19-member ad hoc committee, Ayodele Oladimeji (PDP, Ekiti), who chaired the panel, said high profile debtors to the fund as well as the condition of the projects that benefitted from the loans, in addition to the roles played by the intermediary banks would be investigated.

    According to him, the inability of NERFUND to recover its debts was suspicious as the laws establishing it gave the CBN the powers to debit the accounts of defaulting banks.

    According to him, NERFUND loans have guarantors, which are the participating banks, which meant that loans can only be obtained  through the participating banks.

    Any loan not given through a bank is illegal, he said.

    Oladimeji said failure of NERFUND to recover its loan was a mystery to the committee as the law also made provision for the NDIC to recover money for depositors from distressed banks.

    He said the fate of the new Development Bank of Nigeria  (DBN) may not be different from that of NERFUND since they shared similar responsibilities.

    Declaring open the inaugural meeting, Speaker Yakubu Dogara said the role played by intermediary banks was critical to the investigation.

    The Speaker, who was represented by Olabode Ayorinde  (APC, Ondo), advised the committee not to shy away from invoking its full powers to discharge its duties and responsibilities as assigned by the House with a view of protecting and developing the resources and the economy of the country.

  • Buhari orders immediate repatriation of Nigerians in Libya

    Buhari orders immediate repatriation of Nigerians in Libya

    President Muhammadu Buhari  has ordered the immediate  repatriation of  Nigerians stranded in Libya and other parts of the world for rehabilitation.

    This declaration was made in Abidjan, according to a statement issued on Wednesday by Malam Garba Shehu, President’s Senior Special Assistant on Media and Publicity

    According to him, the president made this known in an interactive session with members of the Nigerian Community in Cote D’ Ivoire.

    The President vowed to reduce the number of Nigerians heading for Europe illegally through the Sahara Desert and the Mediterranean Sea by providing basic social amenities such as education, healthcare, and food security at home, Garba said in the statement.

    According to him, the president said that all necessary steps would be taken to stem the tide of illegal migration by Nigerians.

    He, however, noted that it is very difficult to know the origin of the people who died, while attempting the perilous journey across the Mediterranean, because of lack of documentation.

    “When it was announced that 26 Nigerians died recently in the Mediterranean, before they proved that they were all Nigerians they buried them.

    “The evidence I have from the Senior Special Assistant on Diaspora and Foreign Affairs, (Mrs Abike Dabiri-Erewa) is that only three of them were identified as Nigerians.

    “But I’ll not be surprised if the majority of them were Nigerians.

    “For people to cross the Sahara desert and Mediterranean through shanty boats… we will try and keep them at home.

    “Anybody who died in the desert and Mediterranean without documents; to prove that he is a Nigerian, there is absolutely nothing we can do.’’

    On the recent footage on the sale of Africans in Libya, he quotes the president as saying, that, “ it was appalling that some Nigerians (in the footage) were being sold like goats for few dollars in Libya.’’

    He said: “after 43 years of Gadhafi, why are they recruiting so many people from the Sahel including Nigerians? All they learned was how to shoot and kill.

    They didn’t learn to be electricians, plumbers or any other trade.’’

    On domestic issues, President Buhari told Nigerians in the Diaspora that “there is good news from home in the area of security, economy and anti-corruption.

    “We are not doing too badly in trying to secure the country, improve the economy and deal with corruption.

    “We are doing our best at all levels including security. It is absolute madness for people to blow others up in markets, churches, and mosques.’’

    According to him, no religion advocates violence, saying that “Justice is the basic thing all religions demand and you can’t go wrong if you do it.’’

    On food security, the President said that his vision of repositioning Nigeria as a food-secure nation was on course as the “country is on the verge of attaining food security.’’

    Read also: 580 more Nigerians to return from Libya this week

    He attributed the development to positive agricultural reform programmes and bumper harvest occasioned by good weather.

    According to the President, interventions through the Anchors Borrows Programme of the CBN and the Presidential Fertilizer Initiative, among others, had been very successful in the agricultural reform initiative.

    “People have gone back to the farm. We got the CBN, agriculture minister and money was provided at very low interest to farmers and the farmers responded and it was very positive.

    “We are lucky that we are in a position to feed ourselves. So we are going to have food security in Nigeria earlier than anybody ever thought,’’ he noted.

    The President advised Nigerians in Cote D’ Ivoire to be good ambassadors in their host country, warning that the Embassy would not hesitate to repatriate those who tarnish the image of the country abroad.

    NAN

  • Import prohibition attracts $10b investment, says CBN

    Import prohibition attracts $10b investment, says CBN

    The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said the import prohibition policy of the apex bank has attracted investment valued at $10billion into the country.

    The CBN chief spoke in Abuja during an interactive seesion with  the Joint House Committees on Finance, Appropriation; Aids, Loans & Debt Management and Budget Research on the 2018-2020 Medium Term Expenditure Framework/Fiscal Strategy Paper.

    Represented by Deputy Governor, Operations, Adebayo Adelabu,Adebayo Adelabu, the CBN governor said a reduction in inflation rate from 18.9 per cent to a little above 15 per cent has been achieved by key fiscal policies introduced by the administration which were aimed at stabilising the economy.

    He said local manufacturing of some of the prohibited items, such as building materials–granite, marble, among others, has started by some companies established across the country. This he said would create jobs for the youths.

    Emefiele said the official exchange rate of N305/$  and the parallel market’s N360/$ have been stable over the past few months due to the intervention of the CBN in agriculture, solid minerals, manufacturing sectors and petroleum sector which has been yielding positive results.

    The CBN and Federal Account Allocation Committee (FAAC) agreed that proceeds from forex transaction would be remitted into the Federation Account for the three tiers of government to share, and reduce budget deficit.

    Members, however took him to task on the bailout given to states and he said CBN does not bailout to states as provided in the CBN Act, 2007.

    He added that since they cannot afford the high interest rate from commercial banks, intervention fund were given to critical sectors of the economy at single rate and was channeled through Development Financial Institutions (DFIs).

    However, Permanent Secretary of Federal Ministry of Finance, Mahmud Dutse, who respresented Kemi Adeosun, Minister of Finance requested the support of the National Assembly towards boosting the 20 per cent independent revenue from government owned enterprises, saying there were plans to sanction CEOs of agencies who fail to adhere to the policy.

    He said Nigeria’s tax regime should be reviewed as it is one of the lowest in the world and less than one-third of Africa’s ratio.

    He said in line with the Economic Community of West African States (ECOWAS) tariff policy, the only proposal for tax review applies to excise duties on alcohol and cigarette.

    Executive Chairman, Federal Inland Revenue Service (FIRS) Tunde Fowler, in his presentation  disclosed that N3.233 trillion was realsied over the past 10 months, an amount that represented 79.35 per cent of its collection target for 2017 fiscal year.

    The FIRS justification for 2018-2020 revenue framework, he said, was based on the Federal Government Economic Recovery and Growth Plan (ERGP).

    He said its tax assessment between 2013 and 2015 revealed N1 trillion after its tax audit exercise base deployed technology which has aided the tax agency to increase its revenue.

    Various measures have been adopted by FIRS to ensure increased collections of Federal Government dues in the corporate and individual taxes.

    Fowler added that the new modalities structured for optimal access of accruable due from the Voluntary Assets and Income Declaration Scheme (VAIDS) had yielded over $54 million (N16.73 billion) and N207.41 billion) totalling about N16.40 billion at the federal level only.

    “We have stepped up enforcement activities against tax defaulters on different fronts. These include placing non-compliance stickers on business premises of tax payers who have back-logged of taxes owed and have not made any move to liquidate such.

    “We have adopted substitution as an enforcement tool by putting a lien on the bank account of errand tax payers. This, in my view, will serve as deterrent to defaulters and consequently increase tax collection.

    “FIRS has so far collected over N6 billion and $4.2 million (over N1.4billion) totalling over N7.7 billion. This drive is continuous and will be unrelenting going forward,’’ he said.

    Fowler revealed that as from December,31, 2017, 34 companies will no longer enjoy pioneer status.

    Bala Wunti, NNPC Corporate Planning & Strategy in his presentation expressed confidence that the 2.3million barrels per day(mbpd) oil production and $45 per barrel are possible and that positive results are being yielded by the negotiation between Federal Government and Niger Delta stakeholders.

    Nigeria, he said, recorded 18 per cent over-performance in the 2017 crude oil benchmark based on improved dynamics in supply and demand at the international market, just as he expressed regrets over shutting down of major export infrastructure including Trans-Forcados Pipeline.

    , Minister of State for Budget & National Planning, Zainab Ahmed, in her speech earlier said total oil production is pegged at 2.51 mbpd while budget oil production volume net incremental was pegged at 2.3mbpd; $45 oil benchmark; while exchange rate was pegged at N305/$ for fiscal year 2018.