The Nation Newspaper

Tag: Central Bank of Nigeria

  • Etisalat quits Nigeria, gives three-week ultimatum for brand phase out

    Etisalat quits Nigeria, gives three-week ultimatum for brand phase out

    Etisalat has terminated its management agreement with its Nigerian arm and has given Etisalat Nigeria three weeks to phase out the brand in the country.

    The Abu Dhabi-owned telecommunications networks took the decision after it’s $1.7bn loan talks collapsed.

    Chief executive of Etisalat International, Hatem Dowidar said on Monday that the there was no need for the brand in Nigeria after the collapse of the loan talks.

    Nigerian regulators intervened last week to save Etisalat Nigeria from collapse after talks with its lenders to renegotiate a $1.2bn loan failed.

    Although Etisalat Nigeria in a statement issued three weeks ago claimed that it had repaid 42 percent of the loan.

    “As at today, we can categorically state that the outstanding loan sum to the consortium (of banks) stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars. This, in essence, means almost half of the original loan of $1.2bn, has been repaid.

    “Etisalat continued to service the loan up until February 2017, when discussions with the banks regarding the repayment restructuring commenced,” Ibrahim Dikko, vice-president, Regulatory & Corporate Affairs of Etisalat Nigeria said.

    However, Etisalat International announced on Monday that it was pulling out as all UAE shareholders of the company have exited and left the board and management of the Nigerian brand.

    Dowidar said discussions were ongoing with Etisalat Nigeria to provide technical support, adding that it can use the brand for another three weeks before phasing it out.

    Nothing has been said about how this will affect the network and its integrity as million of Nigerians are subscribed to the network.

    In June, the Nigerian Telecommunications Commission assured that the network’s integrity would not be compromised amid the loan disagreements.

    Director, Public Affairs of NCC, Mr Tony Ojobo had said that the commission’s attention had been drawn to the planned takeover by the consortium of banks.

    Ojobo said that the regulatory body was aware of the indebtedness of Etisalat to the consortium.

    According to him, the NCC in conjunction with the Central Bank of Nigeria, has mediated by holding several meetings with the banks, Etisalat and other stakeholders to find a solution.

    “Regrettably, these meetings did not yield the desired results.

    “The NCC wishes to reassure about 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator.

    “The commission has taken proactive steps to cushion the impact of the takeover; this is without prejudice to the ongoing effort between Etisalat and the banks toward a negotiated settlement.

    “NCC wishes to reassure all stakeholders in the telecommunications sector, in particular, the subscribers on the Etisalat network, that it will ensure that the integrity of the network is not compromised.’’

     

  • ‘Why I returned N60,000 salary to N-Power’

    ‘Why I returned N60,000 salary to N-Power’

    Mr. Daniel Joshua, the Taraba state-born 31-year old, former N-Power graduate employee says his sound Christian moral upbringing compelled him to refund the N60,000 paid into his account, after he quit the scheme in April.

    Vice President Yemi Osinbajo on Saturday July 1, tweeted and praised Joshua’s rare display of integrity, which he said was worthy of emulation by Nigerian youths.

    Joshua now works for the Central Bank of Nigeria in Benin. He is  from Lissem in Ussa local government area of Taraba state.

    He told the News Agency of Nigeria on Tuesday: “My Christian moral upbringing helped me to do the right thing.

    “My pastor once told me that whatever weakens the conscience weakens the authority.And because i have always tried to avoid anything that will weaken my conscience, taking the decision to refund the money was not a problem.

    “Although i didn’t have any money in my account at the time, the orientation from my bosses in my new employment about transparency, integrity and accountability also helped me quickly decide on the right path to take in the matter,’’ he said.

    Joshua, who married in 2015 and now has a child, said some family members and friends tried to persuade him to keep the money.

    “ But I am happy because both my wife, mother and elder brother, encouraged me to refund the money as soon as i received the alert for the two months salary.

    “Yes, there were some friends and family members who persuaded me to keep the money, saying it was my luck,’’ he said.

    Joshua graduated in Economics from the Modibo Adama University of Technology, Yola.

    He said:“It pays to be upright at all times.’’

    He advised Nigerians, especially the youths to be upright in their daily dealings and become good ambassadors of the country.

    Joshua was employed under the federal government N-Power scheme as a Primary school teacher at Kaduna Lissem primary school, in Taraba, in January. He disengaged from the job after working for three months.

    Although Joshua left the N-Power job at the end of March, he was paid N60,000, being stipends for April and May.

    He refunded the money to the coffers of the Federal Government.

    The N-Power management has commended Joshua for refunding the money. A message on its official Twitter handle reads: “We are extremely proud of Daniel.

  • Loan repayment: Banks’ shareholders push for takeover of Etisalat

    Loan repayment: Banks’ shareholders push for takeover of Etisalat

    Some shareholder groups in the nation’s capital market on Tuesday urged Etisalat Nigeria to settle the N1.2 billion debt it owed 13 commercial banks to avoid a takeover.

    A cross section of the shareholder groups stated this in an interview with the News Agency of Nigeria (NAN) in Lagos on Tuesday.

    They insisted that the company must settle the debt for the banks to meet up with their dividend obligations.

    Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, called on Etisalat to settle the debt owed the commercial banks to avoid a legal action.

    Okezie said that the affected banks should approach the court for receivership if Etisalat failed to settle the debt.

    He stated that the banks had obligations to their shareholders in terms of dividend payment at the end of the financial year, insisting that the debt must be paid.

    Also, Mr Godwin Anono, the Chairman of Nigeria Professional Shareholders Association, said that the company should settle the debt and desist from making unnecessary noise about the whole thing.

    He said the transaction was in line with customer-bank relationship, noting that terms and conditions must be obeyed.

    Anono said further that the shareholders were in support of the banks to acquire the company if it failed to settle the loan.

    “This is like any other transaction, it’s not government business and I stand on existing protocol that the banks should acquire the company,’’ he said.

    In his view, Mr Sewa Wusu, Head Research, SCM Capital Ltd., said that the issue of loan between Etisalat and the consortium of banks was a customer-bank relationship which ought to be settled amicably with terms agreeable between both parties.

    He said that the issue was beginning to elicit concerns in the banking industry given the level of amount involved and its potential impact on the balance sheets of those banks involved.

    “But I think, the monetary authority is also involved to ensure prompt settlement of the situation among the parties,’’ he said.

    Etisalat, on June 20, said it had been instructed to transfer its 45 per cent stake in Etisalat Nigeria to a loan trustee.

    It said it had been notified to transfer its stake by June 23, saying that the stake had a carrying value of zero on its books.

    However, in the last few months, Etisalat Nigeria has been in talks with Nigerian banks to restructure a 1.2 billion-dollar loan after missing repayments.

    The loan is a seven-year facility agreed with 13 banks in 2013 to refinance a 650 million-dollar loan and fund expansion of its network.

    Although the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria stepped into the fray to prevent a takeover by the banks, those discussions failed to produce an agreement on restructuring the debt.

     

  • NCC, CBN wade into Etisalat debt crisis

    NCC, CBN wade into Etisalat debt crisis

    In Order to find a resolution to the debt crisis troubling Etisalat Nigeria, a meeting between the officials of the company, Nigerian Communications Commission (NCC), the Central Bank of Nigeria (CBN) and a consortium of banks has reportedly been scheduled for today.

    According to NCC, the consortium of banks seeking to take over Etisalat Nigeria over the protracted $1.72 billion debt impasse must first cross some regulatory hurdles.

    Elsewhere, Reuters quoted an official of Etisalat Nigeria as saying that discussions with the group of Nigerian commercial lenders are ongoing to find a “non-disruptive” solution to the debt.

    The source further said that several meetings were ongoing at the NCC and the CBN after talks between about 10 Nigerian banks and Etisalat Nigeria broke down.

    The source also confirmed that part of the $1.2billion bank credit obtained by Etisalat Nigeria has been paid back since 2013 when the loans were first structured.

    Etisalat of the UAE, which currently holds 45% of Etisalat Nigeria announced at the Abu Dhabi Stock Exchange this morning that attempts to stave off the company’s takeover has proved abortive and the lender banks are closing in to take over following default in loan facility agreements with the consortium of banks in Nigeria.

    Serkan Okandan, Chief Financial Officer of Etisalat Group, who issued the announcement by the UAE mobile phone group, and operators of the Etisalat Nigeria said that both parties have reached a deal to commence transfer of ownership to the banks by 5.00pm on Friday, June 23, 2017, a development that has since sparked concerns over the future of the mobile phone company.

    But Tony Ojobo, spokesman of the NCC drew the attention of the lender banks to the Section 38 and Sub section 1 of the NCA which spells out that, “The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sublicensed or transferred to another party unless the prior written approval of the commission has been granted.”

    Ojobo, said that the lender-banks must take note of relevant provision of the Nigerian Communications Act (NCA) 2003 as well as relevant provisions of the laws guiding the transfer of licences issued operators by the telecoms regulator.

    According to the NCC, Sub-Section 2 of the same provision equally states that, “A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.”

    Ojobo, who said that NCC is aware of the indebtedness of Etisalat Nigeria to the consortium of banks says that the telecoms regulator and its banking counterpart, the Central Bank of Nigeria (CBN), “mediated by holding several meetings with the banks, Etisalat and other stakeholders with a view to finding a resolution.”

    Despite the efforts of the two industry regulators of Federal Government, “regrettably these meetings did not yield the desired results”, he said.

    “The NCC wishes to reassure the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator”, according to the telecoms regulator.

    According to Ojobo, “the Commission has taken proactive steps to cushion the impact of the takeover, this is without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement.”

    “Whilst the banks and Etisalat are working at resolving the issues, the Commission wishes to assure subscribers that they will continue to enjoy the services provided by Etisalat”, Ojobo added.

    According to him, “in view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector, in particular, the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised.”

  • Osinbajo to attend 2017 National Insurance Conference

    Osinbajo to attend 2017 National Insurance Conference

    Mr. Shola Tinubu, Chairman, Planning Committee, 2017 National Insurance Conference (NIC), said on Tuesday that Acting President Yemi Osinbajo would declare open the three-day conference to begin on July 9.

    Tinubu, who made this known at a press briefing in Lagos, said that the conference would hold at the Transcorp Hotel, Abuja.

    He said the conference was aimed at removing all inhibitions against growing insurance business in Nigeria.

    “It is insurance practitioners and stakeholders’ pleasure to applaud the Federal Government for the all policy directions, especially against the backdrop of the nation’s recessive economy.

    “There was the dire need for a reversal of the economic trend, and the Federal Government through the promotion and exportation of local products and policies, is gradually leading the economy out of recession.

    “Also, worthy of commendation is the three years Economic Recovery Growth Plan (ERGP) from 2017-2020,” he said.

    Tinubu said the 2017 conference with the theme: “Nigeria Open for Business”, was apt in view of the Federal Government’s Ease of Doing Business Initiatives (EDBI).

    He noted that the EDBI was spearheaded by the Presidential Enabling Business Environment Council (PEBEC).

    Tinubu said that this year’s conference would be the third since the conception of the Insurance Industry Consultative Council (IICC) in 2015.

    He said the Minister of Finance, Mrs. Kevin Adeosun, would be the Chairman of the technical session of the conference while the Commissioner for Insurance, Alhaji Mohammed Kari, would be the chief host.

    “Mr. Tony Elumelu, Chairman of Tony Elumelu Foundation, will be discussing the theme paper with the aim of making delegates to draw from the speaker’s enormous exposure and experience in the nation’s financial services sector.

    “Discussants include Dr. Joseph Nanna,  Deputy Governor of the Central Bank of Nigeria;  and Alhaji Kyari Bukar, Executive Secretary of Nigeria Economic Summit Group,  among others,” he said.

    The News Agency of Nigeria (NAN) reports that IICC is the amalgamation of all the constituent arms of the insurance industry.

    It includes the Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB) and Institute of Loss Adjusters of Nigeria (ILAN), while the Chartered Insurance Institute of Nigeria serves as the coordinating arm.

  • Sun Trust Bank denies withholding National Assembly aides’ salaries

    Sun Trust Bank denies withholding National Assembly aides’ salaries

    The management of Sun Trust Bank on Wednesday denied reports that it  withheld  the salaries of legislative aides in the National Assembly salaries.

    Mr Usman Abdulqadir, Executive Director for Finance and Risk, made this known at the press briefing in Lagos.

    Abdulqadir said the bank had executed all mandates given to it with respect to making payment on behalf of its customers promptly.

    “In this vein, as banker to some of the NASS accounts, the bank has received the mandate to make payment to various beneficiaries and those payments have since been relayed, some via REMITA, to the relevant banks.

    “We advice that persons who are yet to receive payments executed by us should have first checked with his/ her bankers to trace where such payments are held.

    “We categorically restate that we do not fail to honour any obligation to our clients,” he said.

    The executive director said the bank deeply regretted report that an individual lost his life.

    “We extend our deepest condolences to his family and the entire NASS family,” he said.

    The News Agency of Nigeria reports that legislative aides at the National Assembly protested the nonpayment of their salaries on Tuesday in Abuja.

    The protest was due to the death of one of the legislative aides, Hassan Abiodun, over a ruptured appendicitis because he could not pay N165,000 medical bill for the recommended surgery.

    The deceased, who died on Friday, June 9, was a legislative aide attached to the Deputy Speaker, Honourable Yussuff Sulaimon Lasun.

    The aides, who all dressed in black attire, met Senate President Bukola Saraki, who is also the Chairman of the National Assembly Commission.

    Dayo Fadugba, the spokesman of the aides, accused the Clerk of the National Assembly, Mr Sani Omolori, of having an ulterior motive over his preference for a new bank to pay their salaries.

    According to him, “From all indications, it is manifest that the bank does not have the capacity and infrastructure to handle the volume of transaction the Clerk has foisted on it.

    “Indeed, we are convinced that the decision is motivated by ulterior motive aimed at bolstering the financial standing of the micro finance bank masquerading as a commercial institution.”

    Abdulqadir said Sun Trust Bank Nigeria Ltd., is a commercial bank duly licensed by the Central Bank of Nigeria.

  • Senate to meet with CBN over high interest rate

    Senate to meet with CBN over high interest rate

    Senate President Bukola Saraki has promised that the Senate will look into the high interest rate charged by banks in the country.

    “It is likely that we will debate it this week,” Saraki said during an interactive session with journalists on Sunday in Ilorin.

    According to him, the high interest rate is not good for the economy as the nation eases out of recession and targets growth.

    “This week we will debate it, have a round table discussion with the Central Bank of Nigeria and other commercial banks and talk frankly to ourselves,” he said.

    According to Saraki, it is not fair for the banking sector to be making astronomical profit while companies lose money and retrench workers.

    “Hopefully, with the stability of the foreign exchange, we can now begin to address the issue of interest rate.

    “There is no business that can make money if you are borrowing at 28 percent, it cannot work,” Saraki added.

    He said the Senate would engage financial institutions to arrive at an affordable interest rate, adding, “if they refuse, the Senate may come up with legislation to peg the interest rate.”

    According to him, the banks are charging high interest rate because they have tied their assets in government securities and are getting 18 to 19 percent.

    “They will tell you they are doing business, but in any business, there must be social responsibility.

    “I promise Nigerians that we will find a solution to the high interest rate,” Saraki assured.

    The Senate president also said the upper chamber may limit the amount banks can put in government securities and channel the rest to areas like the real sector.

    Saraki also expressed concern over the status of local governments in the country, saying virtually all local councils lacked the required finances to carry out their statutory obligations.

    He said that to reduce the burden of responsibilities on local councils, the Senate may transfer the responsibility of funding primary education to states.

    “I am of the view that we should look at how state governments take over primary education.

    “This is an arm of government that cannot meet its constitutional obligations and you now put a very important one under it.

    “Ninety Five percent of local governments depend on state governments’ support to pay workers salaries,” Saraki added.

    He noted that the Constitution Review Committee of the Senate may grant autonomy to the local government in the country.

    The Senate president, however, believed that granting autonomy to local governments may not solve their problems.

    He stressed that the main issue was that of inadequate funding which must be addressed to allow local governments function effectively.

  • NYSC calls for more investment in skills training for youths

    NYSC calls for more investment in skills training for youths

    Mr Abdulrazak Salawu, FCT Coordinator, National Youth Service Corps (NYSC), on Saturday called for more investment in skills training in order to reduce unemployment among youths.

    Salawu told the News Agency of Nigeria (NAN) in Abuja that skills training would also propel the nation towards sustainable growth and development.

    The coordinator was speaking on the side lines of the opening of the NYSC Skills Acquisition and Entrepreneurship Development (SAED) programme for the 2017 Batch ‘A’ corps members.

    The programme, which held at the permanent orientation camp, Kubwa, was aimed at introducing new corps members on the SAED.

    “The Federal Government spends a lot every year to mobilise corps members for the one-year national service and this shows great commitment to invest in the youth and the future of the nation.

    “There is, however, the need to do more; government should take a step further by doubling its current investment in SAED.

    “Many developed nations got to where they are today because they invested in their youths.

    “We need to do more for our youths by training and re-training them on skills acquisition,’’ the coordinator said.

    According to him, SAED would encourage youths to be self-employed, self-sufficient and eventually become employers of labour.

    NAN reports that SAED was introduced by the NYSC in 2012 to complement the Federal Government youth’s employment strategies.

    The programme trains corps members on skills like cosmetology, power and energy, horticulture, culture and tourism, construction, food processing, agro-allied and ICT among others.

    After training, beneficiaries receive loans from the Central Bank of Nigeria, Bank of Industry, NYSC Foundation and other financial institutions to start businesses.

  • Buhari administration creates new set of millionaires through farming – Lai Mohammed

    Buhari administration creates new set of millionaires through farming – Lai Mohammed

    The Minister of Information and Culture, Alhaji Lai Mohammed, on Tuesday said that the Federal Government through its agriculture empowerment programme had created new set of millionaires in farming.

    The minister stated this when he featured on a special edition of Channels TV programme, “Sunrise Daily” on the mid-term report of President Muhammadu Buhari-led administration.

    Mohammed said that many young farmers were empowered through the Central Bank of Nigeria’s Anchor Borrower Programme and the Federal Ministry of Agriculture’s Soil Map initiative.

    He said that the programme, which recorded huge success in rice and grain productions, particularly in Kebbi, Kano, Jigawa, Ebonyi and Sokoto states, had made farming attractive to young people.

    Mohammed said the initiative had also helped in boosting the local production of rice, increasing yields per hectares in grains production and reducing importation of rice.

    He said that in 2015, the country imported 580,000 metric tonnes of rice, which had been brought down to 58,000 metric tonnes in 2016 with the successful implementation of the programme.

    The minister noted that though the price of local rice was still higher than the imported one, but the situation would change when production increased.

    He said the imported rice was being subsidised and dumped into the country but assured that the trend would change by next harvest.

    The minister said that the government had also been able to bring down the cost of fertiliser from N9, 000 to N5, 000 following a bilateral agreement it signed with the Kingdom of Morocco.

    Mohammed said that the country was gradually moving out of recession, particularly in the agriculture, manufacturing and solid minerals sectors.

    He explained that it was made possible because of committed investments in infrastructure, ease of doing business and increased budgetary votes for capital projects.

    “When we came in, we inherited about N1.7 trillion in debt owed to contractors; 202 roads were abandoned. In the entire 2015, only N18 billion was spent on roads and N5 billion spent on power.

    “In 2016/2017 we released N1.2 trillion for capital projects only; we spent N260 billion on roads and N99 billion on power generation.

    “We have constructed 320 kilometres of roads and fixed 460 kilometres of road: We have built 24 bridges and repaired about 21

    “On rail lines, we have commenced the construction of the 150 km per hour standard gauge from Lagos to Ibadan and working on others across the country,” he said.

    The minister reiterated that looking at what the government had done in areas of the economy, security and in fighting corruption it had fulfilled its electoral promises.

    Mohammed said the situation would have been worse than it is now if Buhari was not in power, adding that he was proud to be a part of the administration.

    He said in spite of recession brought about by defective economy run by past administration only on oil and the sharp drop in the price of crude, the administration has performed well.

    “We are coming from a situation where we were earning over 100 dollar per barrel of oil and it was reduced to about 30 dollar per barrel

    “It takes acute discipline and management of resources to be where we are today.

    “In spite of recession, between October last year and today, we have been able to add additional 7 billion dollars to our federal reserves.

    “We have also successfully added 87 million dollar to the Excess Crude Account and attract 500 million dollar to the Sovereign Wealth Fund,” he said.

    On security, the minister said that the government defeated Boko Haram insurgency which had taken over almost half of the North-East region before the administration came into power.

    He said government was taken pro-active measures to address the challenge of clash between the herdsmen and farmers and incidences of kidnapping.

  • We will meet revenue target – Customs

    We will meet revenue target – Customs

     Comptroller of Nigeria Customs Service (NCS), Area I Command, Port Harcourt,  Mr. Kabiru Isiyaku, said the command is optimistic that it will meet its N33.3 billion revenue target for the year.

    Isiyaku stated this on Friday in Port Harcourt, the Rivers State capital.

    “The revenue we collected in the first quarter of 2017 is more than what was collected in the first quarter of 2016.

    “Our revenue estimate for each month is N2.6 billion.

    “In the month of January 2017 we collected N1.5 billion,  February was  N1.9 billion and March was N6.8 billion;  almost N10 billion was collected for the quarter.

    ‘’We are expected to collect about seven billion naira but we collected about N10 billion so we have surpassed our target for the first quarter of 2017,” he said.

    Isiyaku attributed the first quarter performance to capacity-building and hard work of officers of the command.

    He said 100 per cent physical examination of cargoes had enabled NCS to identify some classification issues and valuation and raised demand notice.

    “It has helped us in meeting revenue collection in the first quarter,” he said.

    Isiyaku, however, said the depth of the Rivers ports had robbed the command of huge amount of money.

    “But I am sure that we will meet our revenue target of N33.3 billion since we have surpassed our revenue target in the first quarter of 2017.

    “The challenge we have at the wharf is the depth of the sea; it can only accommodate only about 25-tonne or 26-tonne vessels.

    ‘’You can see that it is affecting the number of vessels coming to berth in this Sea Port,” Isiyaku said.

    He pointed out that Central Bank of Nigeria’s policy which removed importers of 41 items from accessing from obtaining foreign exchange (FOREX) through the official market had affected importation.

    “The importers must have FOREX before they can do importation.

    “Our responsibility is to collect revenue; to bring in the cargo is outside the jurisdiction of NCS,” he said.