The Nation Newspaper

Tag: Central Bank of Nigeria (CBN)

  • NDIC becomes member of Islamic Financial Services Board

    The Nigeria Deposit Insurance Corporation (NDIC) has become a full member of the board of the Council of the Islamic Financial Services Board (IFSB) which has its headquarters in Kuala Lumpur, Malaysia.

    The NDIC joins the Central Bank of Nigeria (CBN) as the other Nigerian institution on the Board of the IFSB.

    The decision to admit the NDIC was taken at the 33rd meeting of the IFSB Council, hosted by the Islamic Development Bank Group (ISDB), on 6th of December 2018, in Jeddah, Kingdom of Saudi Arabia.

    IFSB is an International Standard-setting organisation for the Islamic Financial Services Industry that promotes the soundness and stability of the global industry, by issuing global prudential standards and guiding principles for Islamic Banking, Islamic Capital Markets and Takaful (Insurance) Sectors.

    The Council Meeting was chaired by H.E. Dr. Mohammad Y. Al Hashel, the Governor of the Central Bank of Kuwait and Chairman of the IFSB for 2018, attended by the President of the ISDB, H.E. Dr. Bandar Mohammed Hajjar, 12 central bank Governors and Commissioners of regulatory and supervisory authorities, and 10 senior representatives from among the Council and Full members of the IFSB, representing 19 countries.

    According to IFSB, “members of the institution are classified into three categories, namely Full Member, Associate Member and those classified as observers. As a full member of the Board, the NDIC has voting rights – a status which is only available to the financial sector supervisory authorities of its member countries.”

    Read Also: CBN, NDIC to banks: look beyond profitability

    The work of the IFSB complements that of the Basel Committee on Banking Supervision (BCBS), International Organisation of Securities Commission (IOSCO) and International Association of Insurance Supervisors (IAIS), by introducing new, or adapting existing international prudential standards consistent with Islamic Shari’ah principles and recommending same for adoption by the relevant Regulatory Authorities.

    The IFSB had in March, 2018 invited the NDIC to its membership. The institution is currently developing work plans on standards for the Supervisory Review Process of multiple Islamic Banking products that could further strengthen the capacity of the NDIC to continue the robust supervision and provision of guidelines to operators of Non Interest Banks such as Jaiz Bank; Deposit Money Banks (DMBs) with and Micro-Finance Banks (MFBs) with Non Interest Banking windows.

  • CBN charged to investigate, respond to “free money” claims

    The Central Bank of Nigeria (CBN) has been charged to investigate and respond to claims that the seven billion dollars ($7b) bailout fund to commercial banks in October 2006, is “free money”.
    This was contained in a statement signed by the convener, South South Reawakening Group, Joseph Ambakederimo, and issued to newsmen in Warri.
    Ambakederimo, in the statement demanded that all information regarding the transaction be made available to Nigerians, in line with the Freedom of Information Act, adding that the fund which belongs to the three tiers of government, could be deployed to infrastructural development of the nation.
    Describing as a “rape of the Nigerian State”, reports that the then CBN Board of Directors resolved that the bailout money to the banks was “not repayable”, the statement emphasized that the banks are private establishments with aim to make profits. Hence, the $7 billion and its dividends over the years should be recovered and “returned to taxpayers”.
    “We have come to conclusion on the $7BN bail out funds given to banks in October 2006 was a grand scale fraud primarily designed to deny the Nigerian people of good life and happiness. It is safe to say that this could be the first of its kind we have seen were people in the private sector colluding with people in the public sector to deliberately engage in schemes that would take away so much money and deprive the Nigerian people good infrastructures these funds would have provided for them.
    “If what we are hearing is true that the funds are a “Dash”  “not repayable” to the banks who are purely private entities that were setup by private people to make profit that would pay for their holidays in the Bahamas and Acapulco, then it is nothing but a rape of the Nigerian State. The claim that the then board of Directors of the CBN through a resolution passed and gave out such an amount of money free of charge sounds very insulting and nonsensical and a joke taken too far.

    Read Also: Fed Govt earned N682b in October, says CBN

    “The conduct of those who superintended over this mess breached professional standards, their duties, responsibilities, discreditable conduct, integrity, authority, respect and courtesy. It is an abuse of position for personal gains.
    “It is for this singular reason that the South South Reawakening Group is working with the special panel on recovery of public property to ensure that we unravel the mystery surrounding this issue. Our mandate would be to unravel the many unanswered questions. Those who authorized the resolution of “Dashing $7BN to private entities,” what were the conditions attached to the transaction, the memorandum of Understanding between the CBN and the Banks which was deliberately executed in secrecy,” the statement read.
    Commending the federal government for bringing the matter to public’s notice, the statement observed that similar bailouts given to banks in the United States of America and Scotland, were repaid with interests and dividends to the countries’ treasury departments.
    Wondering why the Nigerian case will be different and why the CBN governor, Mr. Godwin Emefiele, is yet to address the issue, the SSRG convener continued in the statement: “If the CBN Governor, Mr. Godwin Emefiele, does not have the wherewithal to recover this fund with all accumulated and accruable interest and dividends, he should honourably resign from office. We are going to pursue this matter to its logical conclusion until every kobo of the $7BN is returned to taxpayers.
    “In fact, let it be known to the Central Bank that this statement we have issued should be taken as our request for information on the whole transaction as consummated in line with the Freedom of Information Act. We want to hear from Mr. Godwin Emefiele that the $7BN given out as bailout to banks in October 2006 is indeed a “Dash” free money, as been reported by the media quoting the CBN.
    “And to our utmost consternation, the fact that the present governor of the CBN, Mr. Godwin Emefiele has not deem it fit to look into this matter judiciously and appropriately address this scandal, goes to show perhaps the cover-up, or is it because his bank ( Zenith Bank) then was a beneficiary? These and many more issues are agitating our minds and they needed to be addressed.
    “We charge Mr Godwin Emefiele, to quickly put in motion a process to recover this fund and ensure that this fund given out since 2006 should earn interest to be calculated from the date the funds were disbursed. This is the only way this matter could be resolved because the beneficiaries of this fund do charge interest on any funds given out as loans or overdraft and therefore there is no reason why they ( banks) should not be made to repay and pay interest on what each bank got and pay dividend to the federal government”, the statement said.

  • $10.1bn repatriation: Court fixes Dec. 12 for report of settlement in MTN vs CBN case

    A Federal High Court in Lagos on Tuesday, fixed December 12, for report of settlement in a $10.1 billion or $8.1bn reparation dispute between MTN Nigeria Communications Ltd, and the Central Bank of Nigeria (CBN).

    Justice Saliu Saidu fixed the date following commencement of settlement talks by the parties.

    The Nation learnt that the parties are in disagreement over whether the sum involved in the suit is $10.1billion or $8.1bn.

    MTN’s counsel in the suit is Chief Wole Olanipekun (SAN), who, at the commencement of proceedings, appeared alongside four other senior lawyers.

    Mr Seyi Sowemimo (SAN) appeared for CBN, while Mr T.D Agbe, Senior State Counsel from the Federal Ministry of Justice, appeared for the Attorney-General of the Federation (AGF).

    Olanipekun told the judge that although the matter today was slated for hearing of pending applications, “we owe the court a duty to inform it that parties are engaged in talks.

    “Counsel have conferred, and in view of this, we are asking for a short date for report,”

    Sowemimo confirmed Olanipekun’s view.

    He added: “We have reached an advanced stage towards settlement, and it remains to cross the Ts and dot the Is; it is just for report of settlement.”

    Upholding their prayers, Justice Saidu adjourned till December 12 for a report of settlement.

    MTN filed the suit, seeking an injunction to restrain the CBN and AGF from taking further actions to reclaim the sum, alleged debt.

    The firm wants the court to hold that the CBN lacks power to determine its civil obligations or penal liabilities.

    Read Also: Alleged graft: Court grants EFCC leave to arraign Diezani

    It is urging the court to declare that the CBN acted outside its statutory powers when it wrote a letter to it on August 18, demanding a refund of 8.1 billion dollars.

    It wants the court to hold that the demand was illegal, oppressive, abusive, unauthorised and unconstitutional.

    On its part. CBN alleged that the telecoms firm improperly repatriated dividends, and requested that MTN should return 8.1 billion dollars to its coffers.

    Meanwhile, MTN has filed a sister case before another judge of same court, Justice Chukwujekwu Aneke, against the AGF, challenging a withholding tax assessment of 1.3 billion dollars and an import duty tax of N242 billion.

    MTN queries these assessments.

    Justice Aneke has fixed February 7, 2019 for hearing of all pending applications in this suit.

  • Sagay, others seek regulatory framework for virtual currency

    Senate Committee on Anti-Corruption Chairman Senator Chukwuka Utazi, Central Bank of Nigeria (CBN) Governor Godwin Emefiele and Presidential Advisory Committee Against Corruption (PACAC) Chairman Prof Itse Sagay (SAN) have called for a legal framework to regulate virtual currency.

    They made the call at a two-day seminar in Abuja with the theme: “Understanding the interface between cryptocurrency and money laundering”.

    The seminar, organised by PACAC, ends today.

    Senator Utazi said virtual platforms of value exchange, such as cryptocurrency, were becoming the new order.

    According to him, there is a murky, loosely regulated framework for the use of cryptocurrencies, which he said rely on cryptography that uses hidden codes to communicate.

    “Users can make transactions directly under pseudonyms, taking away power of control from banks and governments, and it is not controlled by a central authority.

    “This scenario creates a monstrosity of huge proportions for governments and regulatory authorities.

    “In an age where people hide ill-acquired assets and use same for illegal means to sponsor terrorism and all manner of threats to human existence, there should be legislative and regulatory frameworks that understand the dynamics of this genre of economic activity to place society a step ahead of its rapid evolution.

    “There is, therefore, a yawning need for tighter regulation.

    “The associated risks of virtual currencies mutate everyday and it is important that all stakeholders understand what these risks are, and what legislative, regulatory and criminal justice responses to them should be.”

    Emefiele, represented by a senior CBN official Mr K. N. Amugo, said information from coinmarketcap.com indicates that cryptocurrencies’ global market capitalisation currently stands at approximately $203billion as at October.

    He noted that the cryptocurrency market in Nigeria is currently unregulated.

    “Presently, there is no legal framework for the regulation of cryptocurrencies in Nigeria.

    ” Based on existing legislations, the usage of cryptocurrency in Nigeria is neither permitted nor prohibited,” he said.

    The CBN governor said the apex bank constituted an inter-agency committee on virtual currencies, comprising regulators and law enforcement agencies with a mandate to carry out studies on the subject.

    As well as building staff capacity and issuing cautionary public notices, Emefiele said the CBN issued a circular to banks and other financial institutions.

    He said it was on the need to ensure that existing customers who are virtual currency exchangers have effective anti-money laundering/combating the financing of terrorism (AML/CFT) controls that enable them comply with identification, verification and transactions monitoring requirements.

    Banks were also directed to render suspicious transaction reports to the Financial Intelligence Unit (NFIU), he added.

    Prof Sagay said while cryptocurrency yields benefits to those providing the service or trading with it, it was more like a “stateless phenomenon” that poses challenges.

    Read Also: Sagay: we’re running a failed judicial system

    “There is a dark side, which includes the use of cryptocurrency for criminal activities.

    “Due to the upswing in the use of virtual currencies by criminal groups, legislative and regulatory frameworks need to be adapted and updated in response to these new challenges, particularly to the fight against money laundering and terrorist financing.

    “Because of the encrypted nature of cryptocurrency, operators evade tax.

    “It is necessary that there should be some regulations provided in this sector in order to prevent it from being a new avenue for criminal activities and evasion of social responsibility,” he said.

    According to Prof Sagay, the almost invisible and decentralised nature of virtual currencies creates a potential for them to be used for money laundering activities.

    He said the immediate question that begs for answer includes how to regulate trading in virtual currencies and how to prevent them from being used as an avenue for crime.

    The keynote speaker, National Information Technology Development Agency (NITDA) Director-General Dr Isa Ibrahim, said cryptocurrency was one of over 700 applications of distributed ledger transactions, otherwise known as blockchain.

    He noted that Nigeria’s anti-money laundering legislations “were made in respect of local and foreign legal tenders,” adding that “the phenomenon of cryptocurrency was not envisaged.”

    “In essence, Nigeria has no current legal regime to prevent the use of cryptocurrency as a tool of money laundering.

    “The consequences of this exposure are grave, especially considering its implications on our anti-graft war,” he said.

    On how the crypocurrency works, NITDA Director-General, represented by a senior legal officer Olufemi Daniel, said it uses blockchain technology, which, like the internet, has a robust architecture and cannot be controlled by a single entity.

    According to him, the biggest application of blockchain is crytocurrency, which he described as a digital representation of value used as a medium of exchange, a unit of account or a store of value.

    “Blockchains are distributed, not centralised; open, not hidden; inclusive, not exclusive; immutable, not alterable, and secure.

    “Blockchain cannot be corrupted…with all its potential, blockchain can be a force for good in our world today.

    “The innovativeness of criminally minded person is incredible.

    “A desperate person seeking to ward off law enforcement agencies would see cryptocurrency as a veritable means of money transformation.

    “Cryptocurrency will challenge the very need for banks, stock markets and other government sanctioned intermediaries.

    “NITDA is at the forefront of ensuring that the right regulatory frameworks are in place to accentuate rather than stifle the cryptocurrency innovation that has swept the global financial landscape,” he said.

  • Senate to NNPC, CBN: Provide documents for $3.12bn withdrawn from NLNG accounts

    The Senate committee on Gas, Thursday directed the management of the Nigerian National Petroleum Corporation (NNPC) and the Central Bank of Nigeria (CBN) to submit to it documents authorising the withdrawal of $3.12 billion from the Nigeria Liquified Natural Gas (NLNG) account within the last three years. The funds were allegedly withdrawn with 22 separate vouchers.

    But the management of the NNPC represented by its Chief Financial Officer, Isiaka Abdulrasak called for the widening of scope of the committee’s investigation to cover the entire 45 withdrawals made from the said account from 1999 till date.

    Abdulrasaq who willing to throw more light on the total amount withdrawn from the said account, but he was cut short by the Committee Chairman, Senator Bassey Akpan ( PDP Akwa Ibom North East). Akpan accused the NNPC official of going outside his brief.

    Senator Osinachukwu Ideozu, a member of the committee also faulted Abdulrazaq’s actions, questioning his competence as the Chief Finance Officer of the NNPC.

    Ideozu chided the NNPC official for being confrontational in his response to questions put to him by the committee.

    The committee said there were missing links in the brief submitted to it by the management of the NNPC, stressing that this has made the committee job difficult.

    Akpan consequently directed the NNPC to furnish the Committee with records of all dividends accruing from the NLNG and all withdrawals from the account since 2015.

    The committee gave the NNPC up till November 30 to supply its secretariat with a comprehensive list of the 22 withdrawals made from the NLNG Dividend Account with the CBN since 2015.

    The Committee also directed the Acting Director of Banking Services of the CBN, Mr Christopher Olumukore, who stood in for CBN Governor Godwin Emefele, to submit within one week all authorizations for withdrawals, including originating mandates and approvals.

    Akpan added that the CBN should also submit to the Committee by November 30 statement of account of the NLNG Dividend Account domiciled with the the apex bank.

    Olumukore had earlier told the committee that the Dividend Account domiciled with the apex bank was being operated by both NNPC and Ministry of Finance.

    He said that mandates for withdrawals from the account were usually from the NNPC and on occasions from the Finance Minister.

    The Senate had in October, mandated its Committee on Gas to investigate the alleged illegal withdrawal of $1.05 billion by NNPC from the NLNG dividend account with CBN.

    The Committee was also directed to look into other withdrawals that had been made by the NNPC from the said account since 2015.

    The committee will commence scrutiny of the various documents on December 1.

  • Dont let politicians use you for money laundering – CBN warns banks

    … Retains interest rate at 14%’

    As the 2019 elections approach and political maneuvering intensify, the Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) to be careful not to violate the money laundering Act.

    Banks that violate the money laundering Act in the guise of handling money for politicians the CBN warned, risk very stiff penalty. CBN governor Mr. Godwin Emefiele gave warning on Thursday at the end of the Monetary Policy Committee (MPC) meeting in Abuja.
    Emefiele told journalists that the CBN’s position and warning was handed down to the DMBs Chief Executives at a recent meeting to intimate them of the dangers they may be exposed to as a result of the activities of politicians.
    According to Emefiele, “On the 2019 elections, we had a meeting with the banks. We advised them to be very careful of money laundry issues. If they are caught, they will be heavily penalized. But banks have their rules and criteria; I don’t think banks will do anything that will violate the rules. When they go wrong, we will deal with them.”
    On lending to politicians, he said, “of course, when you say banks lending to politicians, banks have their acceptance criteria and I don’t think that the banks will do that at this time. Everybody must have learnt their lessons and I believe that the right thing for everybody is to conduct their businesses carefully. But we as central bank, we are staying behind and watching to make sure that when things go wrong or about to go wrong we will deal with it appropriately.”
    On the raging MTN repatriation issue, Emefiele disclosed that they are on the verge of making an announcement and pleaded with journalists to give all the parties some time to tidy up lose ends.
    According to him, “We have held meetings with the MTN Group from South Africa and we are at the verge of announcing the resolution. I am very certain that we have reached the end of the road on this issue, and I will continue to say that the sanctity of the CCI issued by our banks remain sacrosanct.”
    He stated that “No other company is being investigated on the issue of CCI, no other person is being investigated on the issue of CCI, this is an isolated matter and I will also say that we have foreign investors in Nigeria like Nigerian Breweries, Guiness and lots of foreign investors who have been carrying out their businesses for over fifty years and they have conducted their businesses in a way that we instructed and that is why there have not been issues.”
    The issue of MTN be said “is being resolved and there is no need for anybody to be worried. This issue will be resolved equitably and amicably for the benefit of all.”
    Elaborating further, Emefiele told journalists that “you must know that in issues like this, there are several things involved in this matter, such as whether the capital repatriation CCI was issued in 24 hours, and several others. Of course, these issues were dealt with over the period but the one that appears to have generated the kind of attention that we think it shouldn’t be generating is the issue of repatriation.”
    He cautioned that “it is better for you to be slow in taking some of these decisions and when you take them you know that they are potent, and rational for those decisions. We were rational for the decisions we took because there were certain documents we expected to be submitted, those documents are now been submitted. We are in a process where we are saying this matter will be resolved.”

    Read Also: CBN lifts forex market with $210

    The monetary Policy Committee (MPC) of Central Bank of Nigeria (CBN) rose from its 264th meeting Thursday to announce the retention of the Monetary Policy Rate (MPR) at 14 percent along with all the other base rates. These include Asymmetry Corridor at +200-500 basis points around MPR, Cash Reserve Ratio (CRR) at 22.5 percent and Liquidity Ratio at 30 percent.
    Reading the communique of the meeting, CBN Governor, Mr. Goodwin Emefiele said the decision to hold the rates was unanimously agreed upon by all the 11 members. According to him, “the decision to hold was also an expression of confidence in the direction of the economy which outlook is positive.”
    Reviewing the economy in the last two months, the MPC lamented that “credit to the private sector grossly under-performed below the 2018 benchmark of 12.4 percent. The under performance of the monetary aggregate was of concern to the MPC, which impressed it on CBN to ensure credit delivery to the small and medium scale enterprises”.
    Emefiele noted that “Improvement in productivity in the oil and non-oil sectors are also expected to drive output growth in the medium term. The committee however, acknowledged the downside risks to this outlook to include absence of fiscal buffers, low domestic credit and weak aggregate demand”.
    The MPC also said improvement in security, improved harvest, as well as stable exchange rate are expected to moderate inflation. “Overall, the outlook for the economy remains positive with a growth projection of 1.75 percent in 2018.”
    The committee however advised Nigerians to look out for increase in inflation rate in the coming months due to anticipated election spending, end of year spending, high cost of energy, flooding, farmers/herdsmen crisis. The MPC cautioned that reduction in inflation figures seen in October was unsustainable.
    The MPC urged fiscal authorities to work towards containing these menaces and sustain implementation of the 2018 budget,as well as the Economic Recovery and Growth Plan (ERGP) of the Federal Government to ameliorate the supply side constraints.

  • Agbakoba urges strong fiscal policy in revamping economy

    Former president of the Nigerian Bar Association (NBA), Dr Olisa Agbakoba, on Tuesday called for the introduction of a vibrant fiscal, trade and monetary policies to boost the country’s economy.

    He made the appeal while fielding questions from newsmen in Lagos, on “Practical Solutions to some of Nigeria’s Economic Challenges”.

    Agbakoba said that the first step in any ailing economy is a diagnosis of its main problems, before workable solutions are preferred.

    He noted that although Nigeria had experienced economic setbacks over the years, “there was no time to lament but to chart a clear economic policy direction, which will give value to the economy”.

    On monetary policy, Agbakoba underscored the need for harmonization between the Central Bank of Nigeria (CBN) Policy, and the Minister of Finance’s call for increased public spending on capital projects.

    “Note that the CBN increased the MPR by 200 basis point, from 12 per cent to 14 per cent, to combat inflation and stimulate growth.

    “The MPR is the anchor rate at which the CBN in performing its role as lender of last resort lends to Deposit Money Banks, to boost the level of liquidity in the banking system.

    “If the apex bank intends to increase the level of liquidity in the economy, it reduces the MPR, but increases it when it intends to tighten money supply and by tightening MPR, it has unfortunately, tightened lending,” he said.

    According to Agbakoba, the banking sector requires strengthening, and must be empowered to lend.

    “I recommend that money from the Treasury Single Account should go back to the banks at single digit rates, and that bank’s recommended lending rates should not exceed five per cent.

    “I feel that the CBN should focus on productive value of the economy and not the numerical value of the Naira; the recent devaluation of the Naira by introduction of a floating Naira exchange rate has not yielded positive results as we see the Naira spiralling downward,” he said.

    He said that in preferring a solution to this, government’s monetary policy will be required to move from strict monetarism of the “Mitton Friedman School of thought to the Keynesian Model”.

    Agbakoba expressed optimism that the nation can recover from recession, and also recommended as a start, the need for a presidential proclamation at the National Assembly, switching from austerity policy to growth policy.

    He said this would instill hope and form the basis for a way forward.

    NAN

  • NIRSAL acquires 10,000 hectares for wheat farming in Jigawa

    In a bid to boost wheat farming activities, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) has acquired 10,000 hectares of land in Jigawa.

    The NIRSAL National Coordinator, Wheat Project, Mr Olu Anyo, made the disclosure during land preparation for the project at Hago village in Hadejia.

    According to Anyo, the move will boost wheat farming activities in the state and the country for food sufficiency and also increase farmers’ income.

    He said that the organisation had earmarked N285,000 for cultivation of each hectare, saying that the money would be paid to the farmers in form of farm inputs and not cash.

    The NIRSAL boss said that part of the organisation’s mandate was mobilizing funds for agribusiness.

    “We mobilize finances for Nigerian Agribusiness by using credit guarantees to address the risk of default.

    “We also reduce the cost of borrowing by agricultural producers from commercial banks,’’ Anyo said.

    Read Also: ‘Agric mechanization will help feed our growing population’

    In his speech, the state Wheat Project Coordinator, Alhaji Muhammad Idris, said the cultivation area would cover Ringim, Miga and Hadejia Local Government Areas.

    He said that 100 tractors had been acquired for clearing the land along the Hadejia valley.

    The NIRSAL was launched in 2011.

    It was incorporated in 2013 by the Central Bank of Nigeria (CBN) as a dynamic, holistic 500 million U.S. dollar public-private initiative to define, measure, price and share agribusiness-related credit risks.

    The goal of NIRSAL is to trigger an agricultural industrialization process through increased production and processing of the greater part of what is produced to boost economic earnings across the value chain.

  • NDE to train 6,250 unemployed youths in Kebbi

    The National Directorate Employment (NDE) has started the training of 6,250 unemployed youths who are drawn from the 21 local government areas of Kebbi State.

    The Director-General of NDE, Dr Nasiru Ladan, who made this known at a news conference in Birnin-Kebbi on Friday, said that the beneficiaries would be trained in skill acquisition and agricultural ventures.

    Ladan, who was represented by the Kebbi State Coordinator of NDE, Mohammed Zogirma, said that the training was part of the agency’s mandate aimed at reducing unemployment in the country.

    “We are to train 700 unemployed youths in cosmetology, 300 youths in other skills and 50 youths in Advanced-National Open Apprenticeship Skills (A-NOAS).

    Read Also: ‘Nigeria needs innovative youths to drive development’

    “Fifty unemployed youths would be trained under the Environmental Beautification Training Scheme (EBTS), 50 others would be trained in sustainable agricultural projects, while 50 youths would receive training under the Resettlement Loan Scheme; making total of 1,250.

    “In addition to this, the Directorate will soon embark on its Basic Business Training (BBT) programme in all the 21 local government areas of the state for 5,000 youths.

    “The aim of the programme is to train them so as to enable them have access to loan facilities from the NDE/ Central Bank of Nigeria (CBN) Agribusiness Small and Medium Enterprise Development Scheme ,’’ he said.

    Ladan said that the agribusiness scheme was a joint venture of NDE and CBN, adding that while agency was handling the training aspect, the apex bank would provide financial assistance for the potential entrepreneurs.

  • E-fraud loses projected to reach N6.1 trillion by 2021 – CBN

    Although the use of technology has made banking seamless, accessible and easy, however, it has also made the banking space more dangerous since its adoption.

    E-fraud loses are projected to reach N6.1 trillion by the year 2021 in Nigeria, the Central Bank of Nigeria (CBN), has revealed.

    This was made known by S.K. Salam-Alada, who is the Director of Consumer Protection Department, CBN, at the workshop for business editors and finance correspondents association of Nigeria (FICAN) by the Nigeria Deposit Insurance Corporation (NDIC) in Benin on Wednesday.

    Salam-Alada, who was represented by Emmanuel Hassan, the Deputy Director of the Consumer Protection Department of the CBN, said: “We need to restore public trust and confidence in the financial system because of the problems of malfunction in our e-channels and electronic fraud (e-fraud).”

    According to him, the Consumer Protection Framework (CPF) by the CBN is supposed to not only engender public confidence in the financial system, but also guarantee high standards for efficient customer service delivery, market discipline and ensure that consumers are treated fairly by financial institutions regulated by the CBN.

    “Innovation technology is increasing rapidly and disrupting the financial space. We no longer go to our banks physically as often as we did in the past for financial transactions.

    Read Also: CBN injects $210m into forex market

    “It is interesting to note that Nigeria is among the first countries in the world to adopt the chip and PIN methods of financial transactions verification when other countries were still considering it.

    “Nigeria adopted the Real-Time Payment (RTP) in 2016; this is a remarkable feat,” he said.

    He further added that: “In 2016, customers transacted electronically up to a volume of 869 million translating in value to N69.1 trillion. In 2017, the volume of e-transactions was 1.4 billion which translated to N97.4 trillion in value.

    “Fraud is a major issue on Consumer Protection. In 2016, 19,531 cases of fraud were reported by Deposit Money Banks (DMBs); in 2017, 25,043 cases of fraud were reported by DMBs.

    “There was a 28% increase in reported fraud cases from 2016 to 2017, and an actual loss of N1.63bn lost to fraud in 2017.

    “Every year, fraud cases have been increasing with 83% of it perpetrated through electronic means while 17% were via non-electronic means.”

    Concerning the achievements of the CBN with respect to consumer protection, Salam-Alada, explained that a total of 13,715 complaints have been resolved in recent times resulting to the refund of N66.5bn, $18.5m, €26,319.03 and £9,085.98.

    Dr. Uju Ogubunka, who is the president of Bank Customers Association of Nigeria said that: “I believe that consumers are partially protected.

    “The challenge is for the banks to recognize the right(s) of the consumers and to uphold and respect these right(s). There is much to be done concerning consumer protection.”