The Nation Newspaper

Tag: Central Bank of Nigeria (CBN)

  • Nigerians react to excessive bank charges

    Nigerians across all walks of life have expressed concern over what they termed ‘extra charges’ they suffer from banks each time they withdraw money.

    They believe that the Central Bank of Nigeria (CBN) should as a matter of urgency stop the act by banks as it is negatively them

    It would be recalled that the Senate recently passed a resolution calling on the CBN to suspend the ATM card maintenance charges being deducted from customers.

    For Bolaji Sulaimon, an engineer, it is outrageous for banks to deduct excess charges from customers.

    In his words, “I think they need to stop this act because it is outrageous to deduct such money. For instance when you have 2000 naira in your account the moment you use the ATM (particularly if it’s not your bank)  65 naira is deducted from the money, you cannot even collect the  exact amount you need you will be left with less the amount you originally want to take. We are tired of this system. It just like they are milking us.”

    Azeez Adebukola, who is an architect, argues that banks should put up a technology that informs customers’ before-hand about these deductions, because he is the sole owner of the account. It is therefore wrong for banks to apply extra charges without informing him.

    “Well for me, I think it is a senseless idea. I think that I should be informed before any deduction is done on my account. I think the regulatory body should step in and stop this.”

    Isiaka Lawal, a technician said; “There is nobody that will be happy when you deduct money from his or her account unnecessarily. There are times that I have exactly 4000 naira and I need that exact amount to do something that is very important. The moment the bank deducts the ATM maintenance charges I have no choice than to take the amount left. So the government should help find a permanent solution to this challenge.”

    Read Also: Nine micro-finance banks lose licences in Niger

    A trader, Mrs. Abimbola Ogunbanwo, pleaded for governments’ intervention on this issue. She expressed constant pains as a result of this bank charges. “I feel very bad whenever they deduct my money, especially when I use the card for another bank. Most times you need money and your own bank ATM is not around your vicinity, at that moment you have no choice than to use the other bank and they will definitely deduct money. You however have no alternative.  I am using this opportunity to beg the government to find solution for us so we can withdraw from other banks automated teller machines without them deducting our money.

    Tawa Yakubu, a fashion designer shares a personal experience as regards bank charges.

    She said; “There was a day someone sent 2000 naira to me. It was not even up to a minute before my bank sent an alert that my balance is 1950 naira. I could not cry because I actually needed the exact amount the person sent so I think it high time they stop frustrating us.”

    On her part, a businesswoman, Mrs. Odeyemi Bamidele believes that the excessive charges by banks might be an order from government. “There was a day I went to my bank to complain they told me it was an order from the Federal Government that any transaction being made even with the ATM should attract charges. “So the government through the CBN should help us put an end to this,” she added

    Motunrayo Akinboye, a trader in Victoria Island corroborated Mrs Bamidele’s story. “For banks to be deducting any time you use the ATM is unfair. So, I feel they have to adjust and put a stop to it. They should stop these unnecessary deductions from customers.”

  • Nigeria’s foreign reserve still strong, says CBN

    Central Bank of Nigeria (CBN) has explained the recent reduction in the level of the country’s foreign reserves but has said that the fall does not have anything to do with political actors.

    Director of Corporate Communications of the CBN, Mr. Isaac Okorafor who gave this explanation at the 13th Abuja Chamber of Commerce Mines and Industries (ABUCCIMA) Trade Fair in Abuja said foreign reserves fell “because of global squeeze on emerging markets, which was consequent upon increasing interest rates in the United States of America.”

    Read Also:CBN: Nigeria risks relapse into recession

    Okorafor noted that other developing and emerging markets like Turkey, Brazil, South Africa, Argentina and even China were facing similar dilemma.

    Despite this squeeze, Okorafor assured that notwithstanding the fall, the present level of the Nigeria’s foreign reserve now stands at “$44 billion which is capable of financing between 14 and 17 months imports which is way above internationally acceptable three months.”

    He also gave assurance to customer of defunct Skye Bank that their deposits were safe in Polaris Bank.

    Okorafor stated that Polaris Bank was duly registered at Corporate Affairs Commission (CAC) and licenced by CBN.

    He also told the audience at the fair that the overall impact of CBN’s numerous interventions will continue to enhance the operational capacity of Small and Medium Enterprises (SMEs).

    These interventions the CBN said “has translated into a reflation of our economy with attendant growth and development.”

    The CBN he said will continue to ensure that it delivers on its core mandate of ensuring monetary and price stability.

    However, it cautioned that “it will also continually roll out proactive and innovative policies which would ensure that all economic sub-sectors especially the SMEs in Agribusiness receive the desired support.”

    According to Isaac Okorafor “we are determined to ensure that Nigeria’s economy remains in a state of consistent growth even as we focus on economic diversification and national food sufficiency.”

    In his response, President of ABUCCIMA, Prince Adetokunbo Kayode who was represented by Prof. Adesoji Adesugba disclosed that the Chamber has restructured and now operates through four Centres.

    The prime Centre he revealed “is the Abuja Trade Centre (ATC). The other Centres are the Trade Dispute Resolution Centre (DRC), the Business Entrepreneurial Skills and Technology (BEST) Centre for Skills and Capacity Development as well as the Policy Advocacy Centre which is out to help MDAs to deliver on their respective mandates.

    The 13th Abuja International Trade Fair Prince Adetokunbo Kayode said “seeks to Promote accelerated development of commerce and industry; Promote revitalization and diversification of the Nigerian economy by promoting the nation’s non-oil exports; Direct attention to the role of private sector in the Nigerian economy; Provide access to resources and technology findings; and Attract foreign investment into the Nigerian economy.

    The ABUCCIMA boss expressed appreciation to the CBN for the apex bank’s swift response “which have succeeded in ridding our economy of sharp practices by some financial institutions or houses.”

    In the area of Development Finance, Prince Kayode applauded the CBN for ensuring “the supply of finance to various sectors of the economy which has promoted the growth of the economy in a holistic manner making development, welfare improvement to proceed at a faster rate.”

  • Skye Bank: Expert advises CBN to strictly enforce financial guidelines on banks

    A financial expert, Dr Samuel Nzekwe, has advised the Central Bank of Nigeria (CBN) to intensify efforts to  enforce  the implementation of  its  financial guidelines  in banks,  to forestall collapse of the financial sector  in the  country.

    Nzekwe, a former President, Association of National Accountants of Nigeria (ANAN), gave the advice in an interview with our reporters on Sunday in Ota. Ogun.

    He was reacting to the announcement  of CBN that Skye Bank had been taken over by Polaris Bank.

    Mr Godwin Emefiele, the CBN Governor,  announced on Friday  that Polaris Bank had taken over the assets and liabilities of Skye Bank.

    According to him, if Skye Bank had strictly followed and looked into the CBN financial guidelines on granting loans to investors, the bank would not have problems.

    Nzekwe said that it could have been devastating and terrible if  depositors of the troubled bank lost all their money.

    “We have to appreciate the apex bank for not allowing people’s money to go down with the troubled bank because when bank has problems like this, it is the customers that bear the burdens and the loss, ” he said.

    Read Also: CBN revokes Skye Bank’s licence

    The former ANAN president noted that the action of the CBN would make people to have confidence in the financial sector since customers were safe when there in times of crises in the banking sector.

    Nzekwe further said that it would boost financial inclusion in the financial sector as people would be willing to bring their money to the banks.

    “When people brought more funds into the financial sector, the banks would be able to perform their financial roles which would make the economy to develop,” he said.

    The expert, however, said that the direct effect of the troubled bank would be on the shareholders as they would lose all their shares in the bank.

    Nzekwe explained that this would make investors to reduce purchasing banks’ shares on the floor of Nigeria Stock Market as people would begin to lose confidence in banking stocks.

    The former ANAN president also advised shareholders to always vote out non-directors at the Annual General Meetings (AGM), to avert collapse of such company.

    He, however, said that CBN should not have changed the name of the Skye Bank so as not to scare investors away from the bank.

    NAN

     

  • FG to rake in N17b from sale of 21 percent of NSPM 

    The sale of 21 percent  shares  of the Federal Government in the Nigerian  Security Printing and Minting (NSPM) Plc to the Central Bank of Nigeria (CBN) will contribute over N17 billion to the national treasury, Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh has said.

    At the signing ceremony for the sale of the Federal Government’s 12.4 billion shares in the NSPM to the Central Bank of Nigeria (CBN) at the Presidential Villa, Abuja, Okoh also said that the conclusion of the transaction represents another success in the implementation of the Federal Government’s privatisation and commercialisation programme.

    Read Also:NIMASA, NSPMC partner on new seafarers’medic certification documents

    The Head of Public Communications, Amina Othman disclosed this in a statement Wednesday.

    He maintained that the Federal Government was handing over to the CBN; a company with tremendous potentials to achieve significant growth. The DG said this could be attested to   by the following:

    “The global market for security printing was estimated to be worth $27.2 billion in 2017 and is estimated to grow at about 4.8% annually to $34.3 billion by 2022;

    “Africa is a fast growing market for security printing. The industry is projected to grow at an average annual rate of 9.6% over the next 5 years. This growth is fueled by high population growth and increased mobility across the region as well as increased spending on identity programs. The global market for passports and ID cards is valued at around $3.7 billion and is growing at 6% per annum; and

    “In the area of its core operation which is currency printing, the total amount of cash in circulation is growing at 4% per annum globally and is expected to increase at a similar rate in future.”

    He recalled that the earlier effort to privatise the Mint  between 2002 and 2004;pursuant to section 1 (3) of the Public Enterprises (Privatisation and Commercialisation) Act were unsuccessful  necessitating the National Council on Privatisation (NCP) to formulate a different transaction strategy and approved the strategic investment by the CBN in the company.

    “The purpose of the strategic investment was for CBN to manage, restructure and restore the company to profitability within a period not exceeding 5 years, following which it would be privatised by the Bureau.

    “In compliance with NCP’s directive, the Bureau warehoused 12.69 billion shares of the Federal Government’s holding in the Mint with the CBN at a par value of 0.50k per share amounting to N6, 344,900,000. It was further agreed that this consideration would be refunded to the CBN from the proceeds of sale realized from the eventual privatization of the company”.

    He said the CBN’s strategic investment in the company was a success, achieving its objective of turning around the fortunes of the company and returning it to profitability.

    Following the expiration of the strategic investment period, the Director General added “the CBN indicated its strong intention to acquire the company on an arm’s length basis, noting the sensitive and strategic nature of the security printing and minting services rendered by the company which include immigration and electoral materials”.

    He added that after a careful consideration of the pertinent issues, the Bureau submitted a proposal to the NCP to formalise the sale of 21% of the Federal Government’s interest in the company to the CBN whilst Government would retain an equity holding of 10.1%. This proposal was duly approved by the Council.

    Also speaking, the Central Bank Governor, Mr. Godwin Emefiele, said that the NSPM is a national asset treasured by the government.

    He noted that the company had consistently being a loss maker until the intervention of the CBN, adding that the intervention of the CBN brought to an end the importation of currency to the country.

    The Governor announced that the company had ceased producing international passports though it has the capacity to execute the task and the company, if well positioned, would sufficiently provide national security materials for the public sector and specialised security materials for the private sector, such as bank cards.

  • $10.1b cash demand: MTN drags CBN, AGF to court

    …Group CEO assures of amicable settlement

     

     

    MTN Nigeria Monday said in order to protect its assets and shareholder rights within the confines of the law, it  has approached the Federal High Court for injunctive relief to restrain the Central Bank of Nigeria (CBN) and the Attorney General of the Federation (AGF) from taking further action in respect of their orders to refund $8.1billion and $2billoon to the Federal Government.

    Read Also:MTN faults CBN on conversion of loan to preference shares

    The CBN accused the telco of illegally repatriating $8.8billion through improper certificate of capital importation (CCI) while the AGF is also seeking the payment of $2billion in unpaid taxes over a 10-year period.

    Four local lenders found wanting in the deal were also fined and fines have since been deducted by the CBN from their accounts.

    MTN has continued to strenuously reject both allegations.

    The Group Chief Executive Office of MTN, Rob Shutter has assured of amicable settlement of the issues the Nigeria arm of the telco is facing.

    Responding to a specific question on the crisis on the sideline of ongoing International Telecoms Union  (ITU) Conference at the International Convention Centre (ICC) in Durban,  South Africa, Shutter said, in all its 22 countries of operation,  Nigeria  is the telco’s largest market, adding that the “challenges of the past two weeks” will be addressed.

  • Currency swap will not cover substandard good, says CBN

    The Central Bank of Nigeria (CBN) said the currency swap agreement recently reached with the People’s Bank of China (PBoC), will not cover the importation of substandard goods into the country.

    The Central Bank Governor, Mr Godwin Emefiele, represented by the bank’s acting Director, Corporate Communications, Mr Isaac Okorafor, said this yesterday in Abuja, at the Currency Swap sensitization for North Central Zone.

    Read Also:CBN begins forex trading in Chinese currency

    Emefiele noted that the swap deal had the potential to reduce importation of made-in-China substandard goods as only goods approved by regulatory bodies such as Standards Organisation of Nigeria (SON) would qualify under the agreement.

    According to him, “if there is anybody that thinks he or she will collect Renminbi through this window and sell on the street, is sadly mistaken. Transactions under the deal will be done electronically and this deal is only for products that originate from China. It does not apply to any transaction in Asia, outside the Chinese territory,” he said.

    In his presentation, Mr Oreva Eweh, Assistant Director, Financial Market Department of the CBN, identified “speed and efficiency as some of the benefits of trading under the Renminbi denominated window for the transaction with China.”

    Similarly, Mr Richard Maikai, from the Trade and Export Department of the CBN, spoke on the documentation requirements under the agreement.

    According to him, “importers intending to import from China must obtain proforma invoice denominated in Renminbi as part of the documents required for registration of Form M. Also, the foreign exchange window cannot not be used for payments on transactions in which the beneficiaries are not in China. In addition, authorised dealers shall not open domicilary accounts denominated in Renminbi for customers, “he said.

    Maikai, stated that Bureau de Change (BDC) Operators were not eligible to take part in the transaction as cash transactions would not be allowed under the window.

    Earlier, Mr Adetokunbo Kayode, the Director-General, Abuja Chamber of Commerce and Industry,  Mines and Agriculture (ABUCCIMA), said the currency swap deal would make doing business easier for its members.

    He called on the government to implement favourable business friendly policies to fast track economic growth in the country.

     

  • Buhari will congratulate me as President elect in 2019 – Moghalu 

    Former Deputy Governor Central Bank of Nigeria (CBN), Professor Kingsley Moghalu said he is looking forward to President Buhari’s congratulatory call to him as President-elect in 2019.
    Professor Moghalu made the pronouncement on the heels of his Presidential ambition in 2019, saying that, there have been thousands of preventable job losses across the country in the past three years.
    The former CBN Deputy Governor blamed the sad situation to bad economic policies by the Buhari led administration.
    He shared his thoughts at a town hall meeting in Kaduna at the weekend, where he said he has all it takes to fix Nigeria.
    While blaming the present administration over the deteriorating insecurity of lives and property across the country, the Professor assured that things will be a lot better with him on the saddle.
    He noted that security of lives and property remains a constitutional task of government, saying that, President Muhammadu has failed on the assignment.
    He however promised improved health care for all Nigerians if elected President in 2019, faulting the nation’s health care as he assured that he has a team that can deliver an effective Primary Health Care programme.
    The citizenry in Kaduna state received his presentation with cheers and expressed belief in his positions, promising him support at the poll.

  • June 12 represents hope, says Moghalu

    Former Central Bank of Nigeria (CBN) Deputy Governor, and Young Progressive Party (YPP) presidential candidate, Kingsley Moghalu has said that June 12 embodies the hope of Nigerians for a future that is better and more prosperous than the past and present.

    In a speech titled: ‘The Promise of Hope’, Moghalu said: “Twenty five years ago, Nigerians came out in large numbers to send the military back to their barracks. They came together across tribe and tongue to make a clear statement in the freest and fairest election in Nigeria’s history. Briefly, the heavens opened, and we got a glimpse of what Nigeria could be. Moshood Kashimawo Olawale (MKO) Abiola’s campaign was about hope—hope that Nigeria could live up to its promise. Hope that at last, the most populous black nation on earth could take its rightful place in the world,” he said.

    For Moghalu, June 12, 1993 was the high point of that hope. It was the day when Nigerians arrived at the ballot box sick and tired of the status quo. They were so tired that in that election, Northerners voted massively for Abiola, a Southern candidate, with Bashir Tofa his challenger, losing his home state of Kano.

    “That hope was snatched from us by our military overlords and remains so till this day. We go into the 2019 elections faced with the exact same problems we had in 1993. Nigeria does not have new problems, but old problems that have deepened. Even when the military clothes are replaced with an agbada, the problems are the same. With a candidacy that offered hope, Abiola sought to solve those problems, but those who think themselves lords and masters over us denied the will of the people. Many of them are still alive today, still deciding who gets what,” he said.

    He believes that the hope of June 12, 1993 still resides in Nigeria. I believe so because in my travels across the country and interaction with Nigerians, I see the same distaste for the status quo that existed in 1993. I see the same desire for something bold, new and different. I see the same thirst for a government that is truly on the side of the people. I saw that desire for something different in a brief conversation with Ahmed, a farmer in Nasarawa. He had lost most of his farmland to herdsmen, and repeated calls to the police to act have gone unanswered. While speaking to me through a translator, he said: “It has never been this bad. I have lost all I own.”

    Chinedu, whom I met during a town hall in Ebonyi, lost his job and has been unemployed for months, and does odd jobs just to make it through the day. I got a letter recently from someone in Port Harcourt, who lost her child due to a lack of oxygen at the hospital. She wrote: “Please help stop more children from dying.”

    The spirit of June 12 is not just about the past, but the future. It is about whether we can, as a people, reach out and reclaim the promise of that day.

    The significance of this day goes beyond recent attempts to use it for partisan political advantage. To honour a man is to keep his legacy and carry on the vision he wished for the people he hoped to lead.

    As an entrepreneur himself, Abiola understood the power of enterprise and industries. He didn’t pay lip service to it, he got involved in alleviating poverty to the highest level that he could as a citizen.

    June 12 stands for something much bigger than public holidays. It embodies the hope of Nigerians for a future that is better and more prosperous than the past and present.

    To make this future our reality, we must come together and recognise that we need a clean break from the status quo to forge a new path to prosperity. We must realise collectively that our current political class are incapable of delivering on the promise of Nigeria.

    Nigerians who flocked to the ballot box 25 years ago understood this and voted unequivocally for an end to what was then 14 years of military rule.

    They chose to ignore empty promises and intimidation to participate in an election that will stand for all time.

    To honour their sacrifice of those who fought and died for the restoration of that mandate, and stay true to the spirit of June 12, we must restore that hope that our country can be better. We must refuse to give in to the cynical people who say nothing can be done, who say it has all been decided already.

    It is time to get off the wheel of misfortune and pave a new road to the Nigeria we desire. It is time to replace our songs of woe with a new song. It is time for fresh leadership and a decisive approach to nation building.

    One of the lessons of June 12 is that we have our future in our hands. If we heed this lesson, new possibilities will open up for us.

  • Alleged N2.1bn fraud: Prosecution closes case in Dokpesi’s trial

    …Defence plans no case submission

     

    The prosecution in the alleged N2.1billion fraud trial involving businessman, Raymond Dokpesi, and his firm, Daar Investment and Holdings Company Limited, announced the closure of its case Monday after calling 14 witnesses.

    Lead prosecution lawyer, Oluwaleke Atolagbe made the announcement after his 14th witness; Usman Aliyu concluded his testimony before a Federal High Court in Abuja.

    An operative of the Economic and Financial Crimes Commission (EFCC), Aliyu gave details of his “analysis” of the N2.1bn allegedly paid unlawfully to Dokpesi and Daar by the Office of the National Security Adviser (ONSA) in 2015.

    Aliyu said his findings revealed that Dokpesi allegedly spent the money to acquire personal assets. He said there was no basis for the payment of the N2.1bn to the defendants.

    Aliyu said, “My investigation bordered on the N2.1bn received by Daar Investment and Holdings from the Office of the National Security Adviser, without any due process followed and without carrying out any contract for the Office of the National Security Adviser.”

    The witness was made to read from a document the various transactions relating to the transfers of various sums of money to beneficiary companies from the N2.1bn allegedly paid by ONSA into Daar’s accounts.

    According to Aliyu, “all the money paid to Archisynthensis Limited was for renovation and construction work at the home of Dr. Raymond Dokpesi at Agenebode in Edo State and Daar’s office in Asokoro, Abuja.”

    Under cross-examination by lead defence lawyer, Kanu Agabi (SAN), the witness accepted the defence’s suggestion that funds in ONSA’s account with the Central Bank of Nigeria (CBN) were not proceeds of crime.

    He also said, “There is no reason for the defendants to have received any funds from the National Security Adviser.

    “The payment was made without any process being followed and without any contract executed.”

    Aliyu agreed with the defence that the defendants had “no control” over the procedure of payments by the NSA office.

    Read Also:Dokpesi to Lai Mohammed: Retract calling me looter or face N5b lawsuit

    At the conclusion of Aliyu’s evidence, after he was cross-examined by Agabi, Atolagbe told the court that the prosecution would close its case.

    Agabi said the defence intends to make a no-case submission, in which it would argue among others, that the prosecution has not led sufficient evidence linking it to the offences charged and warrant it being called to enter a defence.

    The defence will then pray the court to dismiss the charge and set the defendants free.

    The trial judge, Justice John Tsoho directed the defence to file its no-case submission within 21 days.

    Justice Tsoho equally asked the prosecution to file it’s response within 21 days from the day it is served with the defendants’ no-case submission.

    He also directed that the defendants would have 14 days to further reply from the day they are served with the prosecution’s response to the no-case submission.

    The judge adjourned to October 4 for parties to adopt their written submissions for and against the no-case submission.

    Dokpesi and Daar arraigned by the EFCC on charges of money laundering and procurement fraud to the tune of N2.1bn, which they allegedly received from ONSA between January and March 2015.

    They were accused of receiving the N2.1bn from ONSA, when Sambo Dasuki was in the National SecurityAdviser, as payment for a “purported contract on presidential media initiative”.

    The prosecution also alleged that Dokpesi and Daar received the N2.1bn from ONSA to prosecute the 2015 presidential media campaign for the People’s Democratic Party (PDP).

    It claimed that the payment was in breach of the provisions of the Public Procurement Act, Money Laundering (Prohibition) Act and the EFCC (Establishment) Act.

  • Moghalu promises modern leadership for Nigeria

    Former Central Bank of Nigeria (CBN) Deputy Governor and presidential aspirant, Kingsley Moghalu has promised to provide modern leadership to the country if elected President next year.

    Speaking at a townhall meeting of the Kingsley Moghalu Support Organisation (KIMSO) held in Minna, Niger State, which saw a huge crowd in the overflow, he unveiled a three point-agenda for Nigerian youth.

    He promised to mentor and train the youth to take over effective leadership of the country; wage a decisive war on unemployment – particularly youth unemployment which reached 33 percent in Q3 2017; and dramatically improve the quality of education, to raise the knowledge and skills of Nigerian graduates, which will improve their employability and ability to successfully start their own businesses.

    Read Also: We need people who believe in leadership change, says Moghalu

    Professor Moghalu also promised that his government, if he is elected President in 2019, will prioritise the welfare of Nigerian women, by strengthening access to quality primary health care, supporting women in business with access to capital to grow their businesses, as well as providing political support for improvement in the participation of women in appointive and elective positions.

    With regard to access to finance for youth and women entrepreneurs, Moghalu promised to setup a venture capital (VC) fund, which, as a public private partnership (PPP), will have government’s contribution of N500 billion matched by private sector contribution, raising the fund’s capital to N1 trillion. The fund will provide equity financing, with the advantages that the businesses will not be saddled with the burden of repaying loans with double-digit interest rate, and the VC fund will provide needed expertise to help grow the investee businesses.

    This, according to the Presidential aspirant, will substantially reduce unemployment and poverty in the country, through the direct and multiplier effects of the venture capital fund.