The Nation Newspaper

Tag: Central Bank of Nigeria

  • Expert cautions CBN against floating naira

    An economic expert, Prof Uche Uwaleke, on Wednesday urged the Central Bank of Nigeria (CBN) to ensure the economy was sufficiently diversified before considering the option of floating the naira.

    Uwaleke said this in an interview with the News Agency of Nigeria (NAN) in Abuja.

    He also urged the apex bank to sustain its intervention in the Forex market as it had resulted in increased supply of Forex in the economy.

    “In the light of the favourable international oil market condition, the CBN interventions in the Forex market should be sustained.

    ” As long as the source of the Forex remains chiefly oil, the apex bank should continue to ignore calls to float the naira until the export base of the economy is sufficiently diversified.

    According to Uwaleke, the gap between the official and parallel market Forex rates is narrowing by the day due to improved liquidity in the Forex market engendered by the CBN.

    He said the apex bank’s sustained interventions had resulted in improved supply such that some Deposit Money Banks were unable to take up all that was offered by the CBN.

    ” The recent Forex rules have also resulted in improved access to Forex, especially for invisibles to the extent that banks are now encouraging their customers to come for BTAs etc.

    ” In view of the less stringent conditions attached, the requirement for tax clearance certificate has been removed.

    “The CBN’s directive with respect to opening offices at airports and the use of dedicated teller points by commercial banks has also contributed to improving access to forex.

     

  • Lack of teachers, materials may hinder implementation education – NUT

     The Nigeria Union of Teachers, Lagos State Wing, has hailed introduction of financial education curriculum into basic and senior secondary schools but said lack of teachers and materials might hinder implementation.

    Mr Adedoyin Adesina, Deputy Chairman of the wing, told the News Agency of Nigeria (NAN) on Wednesday in Lagos that there were no personnel and materials to implement the curriculum.

    NAN reports that the Central Bank of Nigeria (CBN) on March 27 said it had developed and introduced the curriculum into the schools.

    An official of the CBN, Ms. Khadijah Kasim, said in Abuja that the apex bank developed the curriculum in collaboration with the Nigerian Educational Research and Development Council.

    She said that it was aimed at inculcating in children how to use financial services responsibly – including the habit of savings and investment  – to enable them to make informed financial decisions in future.

    Kasim said that the curriculum, already approved by Nigeria Council on Education, would be introduced in pilot states across the six geo-political zones from the next academic year starting in September.

    While hailing the idea, Adesina, however, expressed the worry that many public schools lacked the personnel and materials to effectively implement the curriculum.

    “Where are the materials to implement the curriculum? Where are the teachers trained for that purpose?

    “What are the reference materials for teaching? Have they organised workshops and seminars on the mode of implementation?

    “There are other extraneous factors that will hinder the success of this idea,’’ he told NAN.

    The unionist urged that the factors be looked into by relevant bodies to realise the objectives of the curriculum.

    Adesina said that, if well taught, financial education would inculcate in children the rudiments of financial management.

    “It will also inculcate in them proper accountability, probity and financial propriety,” he added.

     

  • CBN grants national licence to DBN

    CBN grants national licence to DBN

    The Central bank of Nigeria has granted a national license as a Wholesale Development Finance Institution to the Development Bank of Nigeria (DBN) Plc.

    As a wholesale bank, the DBN will lend wholesale to Microfinance Banks which will on-lend medium to long-term loans to MSMEs.

    MSMEs contribute about 48.47 percent to the Gross Domestic Products (GDP) of Nigeria but have access to only about 5 percent of lending from Deposit Money Banks (DMBs).

    A statement from the federal ministry of finance Wednesday said the approval was conveyed in a letter addressed to the Managing Director/Chief Executive of Officer of DBN dated March 28, 2017 and signed by the CBN Deputy Governor in charge of Financial System Stability.

    Granting the license the statement noted was subject to the bank meeting the minimum capital requirement of N100 billion and the reconstitution of the Board of the Bank and the review of its organogram.

    It could  be recalled that the Minister of Finance Mrs Kemi Adeosun had disclosed in the past that the DBN will have access to US$1.3 billion (N396.5 billion) which has been jointly provided by the World Bank (WB), KfW (German Development Bank), the African Development Bank (AfDB) and the Agence Française de Development (French Development Agency).

    The DBN is also finalising agreements with the European Investment Bank (EIB).

    Adeosun had also stated that the DBN, will provide loans to all sectors of the economy including, manufacturing, services and other industries not currently served by existing development banks thereby filling an important gap in the provision of finance to Micro, Small and Medium Enterprises (MSMEs).

    “The Federal Government expects that the influx of additional capital from the DBN will lower borrowing rates and the longer tenure of the loans, will provide the required flexibility in the management of cash flows, giving businesses the opportunity to make capital improvements, and acquire equipment or supplies” the statement from the ministry said.

    The DBN, was conceived in 2014 however, its take-off had been fraught with delays. The President Muhammadu Buhari led administration inherited the project with a determination to resolve all outstanding issues and set a target of 2017 for its take-off.

     

  • MD lauds FG for banning tomato paste importation

    Alhaji Abdulkarim Kaita, the Managing Director of Dangote Tomato Processing Company, Kadawa, Kano State, has commended the Federal Government for banning the importation of tomato paste into the country.

    The managing director made the commendation in an interview with the News Agency of Nigeria (NAN) in Kano on Tuesday.

    “I want to use this opportunity to commend the Federal Government for the singular act.

    “The information reaching us is that government has banned importation of tomato paste and the Central Bank of Nigeria will support tomato growers with loan under the Anchor Borrower programme,” he said.

    Kaita noted that enforcing total ban on importation of the commodity would enable local tomato processing factories to thrive, in addition to providing job opportunities to the teeming number of unemployed persons in the country.

    “The importation of tomato paste from China had adversely affected the local tomato processing companies as local product was not being patronized adequately.”

    According to him, his company plans to produce tomato paste in drums and sell it to packaging companies across the country.

    He also commented on the decision to include tomato farmers in the CBN anchor borrower programme, saying the move would attract more farmers and boost tomato production.

    “Eighty per cent of families or households in the country use fresh tomato for their daily cooking.

    “The ban on importation of tomato paste will encourage many farmers to embrace the business.

    “When the importation of rice was stopped, we witnessed massive production of the commodity across the country,” the managing director noted.

    Kaita said Dangote tomato processing company which resumed production nine days ago, was yet to go into full operation due to non availability of fresh tomato to process.

    “About eight days ago when we resumed operation we offered to buy the fresh tomato at N800 per basket but the farmers said the price was not acceptable to them.

    “We increased the prices to N900, N1,200, up to N2,000 per basket but few farmers brought it at this price.”

    He said the company which process 120 tonnes of fresh tomato daily was only able to process 200 tones since it resumed operation about nine days ago.

    The managing director, however, believed that if given the necessary support, tomato growers would produce in excess of what the tomato processing companies would require for their daily operation.

    “We need to grow the commodity all year round so that the factories would not close due to non availability of the raw materials to process.” he added.

     

  • Banks’ security chiefs seek CBN framework on cyber-crimes

    Chief Security Officers (CSOs) of banks on Saturday urged the Central Bank of Nigeria (CBN) to provide them with security framework that would blacklist cyber criminals in banks.

    The CSOs’ resolve was presented by their leader, Mr Sam Okenye, at the end of a week-long conference on Nigerian Financial Sector Global Cyber Security held at Transcorp Hotel, Calabar.

    Okenye said banks do not need to compete on security matters but rather collaborate in fighting cyber-crimes and carry out constant evaluation of their system.

    According to him, the introduction of Bio-metric Verification Number (BVN) in the banking sector is an important tool to kick out fraud in banks.

    He expressed the CSOs belief that whenever the CBN offered the expected framework, BVN would remain a major instrument for eliminating fraudsters from the banking system.

    He said “such framework should become major instrument to kick those guys out of the banking system for a while.

    “And they probably will be restricted from channel transactions, depending on what the framework entails.

    “Chief security officers of banks are of the opinion that there is need for framework to
    combat cyber-crime and fraud and this is crucial.

    “The BVN today is a major tool that will help banks to combat fraud. With BVN,
    you can identify a particular customer of a bank.’’

    He said that although the CBN has a cyber-crimes committee, CSOs of banks re-emphasise that BVN should be a major tool in checking fraud in the banking system.

    He explained that the week-long conference had identified low level of security awareness as hindrance in the fight against cyber crime.

    He noted that “some customers divulge their sensitive information to fraudsters unknowingly. They put a call to them pretending to be calling from a bank.

    “And because customers have low level of awareness, they disclose sensitive information and fall for fraud.

    “So, low security awareness is a challenge which we are going to tackle as an industry. This is part of what we agreed on here.”

  • Reps urge CBN to withdraw mutilated currency in circulation

    Reps urge CBN to withdraw mutilated currency in circulation

    The House of Representatives, on Thursday urged the Central Bank of Nigeria (CBN) to urgently withdraw and destroy mutilated naira notes in circulation.

    The house also charged the National Orientation Agency to carry out sustained public enlightenment to educate Nigerians on the need to handle the naira notes cautiously with care.

    The resolutions followed a motion by Rep. Adekola Alexander (PDP- Ekiti).

    Moving the motion, Alexander said that the alarming rate of mutilated currency notes in circulation had become a national embarrassment.

    He added that banks were issuing torn, mutilated and unhygienic currency notes through ATM machines and across the counter.

    “I observe that in spite of arrest and subsequent prosecution of the culprits, there is still a cartel in CBN and commercial banks, which make brisk business recycling old naira notes meant for destruction.

    “They enrich their bank accounts, acquiring properties through these illegal proceeds by converting the equivalent of the mutilated notes into their accounts and selling printed mint meant for customers, to touts and hawkers.

    “Section 21(4) of the CBN Act of 2007 makes it a punishable offence for any person to hawk, sell or trade in naira notes, coins or any other issued by the apex bank,” he said.

    The lawmaker expressed worry that most of the mutilated currency notes in circulation harboured pathogenic micro organisms hazardous to human health.

    He said that the mutilated notes also harboured infectious disease such as diarrhea, food poisoning and respiratory problems which could be spread through the notes.

    The motion was unanimously adopted by members when it was put to a voice vote by the Speaker, Mr Yakubu Dogara.

    The house, therefore, mandated the Committee on Banking and Currency to conduct an investigation into the activities of the cartel by beaming searchlight on the CBN, commercial banks and other allied institutions.

    The committee was given six weeks to carry out the assignment

     

  • Theft of CBN’s N8bn: 2 bankers bag 18 years

    Theft of CBN’s N8bn: 2 bankers bag 18 years

    A Federal High Court sitting in Ibadan has sentenced a Central Bank of Nigeria staff, Philip Togun, and a woman, Esther Afolabi, ex-staff of WEMA Bank to 18 years imprisonment for participating in stealing of N8 billion at CBN Ibadan branch.

    They were arraigned for conspiracy, conversion, forgery, re-circulation of mutilated currencies and stealing CBN’s  N8 billion by the Economic and Financial Crimes Commission (EFCC).

    The News Agency of Nigeria (NAN) reports that Togun, a former Treasury Assistant at CBN Ibadan branch and Afolabi, have been standing trial since 2015  alongside others.

    The other accused persons standing trial with the convicts are Kolawole Babalola, Muniru Olaniran, Festus Adeyemi, Yusuf Fatai, Olukunle Sijuwade, Emanueal Ordia and Patient Okoro.

    Two others — Ademola Oni and Tope Akintade —  had earlier opted for plea bargain and were similarly sentenced upon fulfillment of the terms of the plea bargain.

    A few other accused persons have also reached advanced stages in their plea bargain with the EFCC.

    Sentencing Togun and Afolabi, Justice Joyce Abdulmaleek held that she adopted the plea bargain agreement entered into by them with the EFCC  as basis for her judgment.

    “I hereby convict the fourth accused person, Philip Togun, for counts 15, 17 and 19 respectively and convict the fifth accused person, Esther Afolabi, for counts 16, 18 and 19 respectively.

    “Togun is sentenced to three years in prison for each of the three counts of 12 calendar months a year to commence from Jan. 1, 2016.

    “The convict shall forfeit to the Federal Government of Nigeria the following assets found in his possession; a building located in Ibadan and the money in the two bank accounts operated by the convict.

    “Afolabi is also sentenced to three years imprisonment for each of the three charges, 12 calendar months of the year, commencing from Jan. 1, 2016.

    “The convict shall forfeit the following assets which are the proceeds of the crime to the Federal Government of Nigeria — a five-bedroom duplex, a filling station, the entire money scattered across seven different bank accounts in Nigeria,” the judge ruled.

    Abdulmaleek, however, said that the sentences would run concurrently.

    However, the two defense counsel, Mr Olalekan Ojo and Mr Adewole Olajire, expressed dismay with the sentences.

    They said the judge did not consider the date when the convicts were arrested and also did not give full consideration to the plea bargain between the two convicts and the EFCC.

    Shortly before the judgment was delivered, the lawyers had pleaded with the court to temper justice with mercy in sentencing the former bankers. (NAN)

  • Forex intervention to converge rates, says Emefiele

    Forex intervention to converge rates, says Emefiele

    The Central Bank of Nigeria (CBN) has explained  that the purpose of its current foreign exchange intervention is to bring about a convergence of all the rates.

    The CBN said it has the strength to sustain its foreign exchange intervention to stop the Naira from falling out of control.

    Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting Abuja on Tuesday, the governor of CBN Mr Godwin Emefiele warned doubting Thomases that “they are taking a risk and they will lose in this bid to want to place the wrong bet on the direction we are going.”

    “The direction is that there is determination to see the convergence of those rates and with what we have seen so far we are very optimistic that those rates will converge and all the elements in the foreign exchange market will no doubt be implemented.”

    Emefiele noted that “in terms of sustainability, reserves at this time are still trending upwards almost close to $31 billion as I speak with you and the fact that we have done this consistently for four to five weeks should convince everybody who doubts the strength of CBN to sustain this policy.”

    He stated that “it is a programme that is on course, we are happy that it is looking good beyond our expectations and those who still remain on the sidelines doubting the CBN’s ability to sustain this policy, they are on the wrong side of the bet.”

    Speaking on what led the apex bank to initiate the intervention, Emefiele said the CBN made a presentation on the Nigerian economic and FX to the National Economic Council (NEC)  which thereafter advised that we look into all the issues discussed.

    “Before then we had started to see the rising trend in the FX particularly in the parallel market and we had taken a decision that there was a need to reverse the trend that is the reason we specifically started the FX intervention and I am happy it is indeed very gratifying that those interventions have proved positive, we’ve seen rates converging we are strongly optimistic that the rates will converge.”

    On the movement of rate from N305 to N307, Emefiele said the movement “has nothing to do with any adjustment, the market is not one to be fixed, the market will move sometimes based on trends it is not meant to be a fixed market it is sort of a floating market that floats within a particular range. It is not an attempt to further weaken the Naira.”

  • Alhassan showcases govt empowerment programmes at UN

    The Federal Government on Thursday in New York, showcased the social intervention programmes put in place by the administration of President Muhammadu Buhari specifically, to empower women in the country.

    The Minister of Women Affairs and Social Development, Sen. Aisha Alhassan, at a side event hosted by Nigeria at the ongoing UN Commission on Status of Women, said women’s financial exclusion was becoming a thing of the past.

    The UN Correspondent of the News Agency of Nigeria (NAN) reports that the theme of the event was “Financial Inclusion: Boosting Women’s Empowerment in Changing Economy through Government Enterprises and Empowerment Programme”.

    “The Government of President Muhammadu Buhari is conscious of the need to fully integrate women as active participants in the Nigerian economy by expanding their access to credit.

    “In this regard, the Government has rolled out several gender-based social palliatives that would both empower women, and liberate them from the clutches of poverty.

    “The overall aim of President’s Social Investment Programme is to ensure that the human rights of women and girls are facilitated through a range of transformative, comprehensive and inclusive platforms,” she said.

    She said her ministry recognized the enormous contribution of the informal economy sector, which is largely populated by women.

    In view of this the ministry,  in collaboration with other Ministries, Departments and Agencies, had carried out various forms of intervention programmes geared towards supporting women’s entrepreneurship development.

    “I am happy to announce to this gathering that to further consolidate on these initiatives and reaffirm his commitment towards improving the productivity and livelihood of Nigerian women, the present administration, under the leadership of President Mohammadu Buhari recently launched a N1.6 billion special intervention fund – National Women Empowerment Fund.

    “The Fund is aimed at supporting grassroots women operating informal businesses by providing start-up and scale-up credit for them.

    “The programme has been rolled out and expected to target about 10,000 women per state.

    “Through this project, an estimated 450,000 dollars is to be disbursed per state through active and functional cooperative, local trade associations and other community based groups.”

    She said there was “a recommitment to utilize 60 per cent of the N697 billion Micro and Small Medium Enterprise Fund for women.

    “In addition, the Victims Support Fund, which raised about 625 million dollars for the rehabilitation of victims of Boko Haram will benefit children and women who constitute majority of the victims”.

    The Minister said the Federal Government was also scaling up the training and empowerment of Internally Displaced Persons, especially women and girls in the affected states.

    “Other laudable interventions wothy of mention include the gender responsive budgeting model, which was piloted in five Ministries, Departments and Agencies namely Agriculture, Health, Water Resources, Works and Communication Technology with a record of 3.6 million beneficiaries till date.

    “There is also the major initiative, which is the Growing Girls and Women Initiative in Nigeria (G-Win) E-Wallet Agro initiative, which provided subsidized agro-inputs to women in agribusiness.

    “So far, two million registered women have benefitted from this scheme,” Alhassan said.

    To enhance rural development, the Rural Finance Institution Building Programme has been put in place to boost income and general living conditions for rural households, particularly female headed households, she said.

    The minister added that the programme was in addition to the establishment of the Entrepreneurship Development Centres, which are building the capacity of women.

    “The initiative has so far created 2,078 women enterpreneurs, representing 51 per cent of the beneficiaries.

    “The FADAMA Irrigation project has also been extended to a third phase to increase the income of users of rural land and water resources, especially women,” she said.

    NAN reports that some of the institutions that are responsible for the implementation of the social intervention programmes, namely Central Bank of Nigeria and Bank of Industry, provided further information on requirements to accessing the funds.

    NAN also reports that the side event was attended by Wives of Governors, Commissioners, legislators, women civil society groups and representatives from other African countries.

    The representative of Burundi, specifically, appealed to Nigeria to use its strategic position on the continent to push for the establishment of a continental bank for women to further empower them.

  • CBN will sustain dollar intervention, expert says

    CBN will sustain dollar intervention, expert says

    Mr Ayo Teriba, Chief Executive Officer, Economic Associates, says he is optimistic that the Central Bank of Nigeria (CBN) will be able to sustain its intervention on the foreign exchange (Forex) market.

    Teriba told the News Agency of Nigeria (NAN) on Sunday in Abuja that increase in oil production and high oil prices had increased the foreign reserve base of the country.

    “We are back to a situation where the Forex at the disposal of the CBN is likely to go up.

    “The CBN could not intervene in the Forex market in 2016 because of low oil production, prices and because foreign reserves were also low.

    “Today, oil price is up, reserves have also gone up, the outlook of the oil prices is stable and production in Nigeria is going back to capacity; so it has the capacity to intervene.

    “In a couple of months, the apex bank should be able to meet all of the demands and all the multiple exchange rates will converge.”

    The CBN recently injected 100million dollars into the interbank foreign exchange market as a measure to ease Forex accessibility, thereby crashing demand in the black market.

    The measure was also to fund commercial banks with enough Forex to cater for the demand by customers and to meet basic travelling allowance, medicals and tuition fees.