The Nation Newspaper

Tag: Central bank

  • Fresh hurdle for local govts over Central Bank accounts

    Fresh hurdle for local govts over Central Bank accounts

    • Apex bank demands two years audited accounts of LGs

    Local Governments across the country are facing a fresh hurdle in their bid to receive their monthly allocations directly from the Federation Accounts.

    Each of the 774 local governments is now required to furnish the Central Bank of Nigeria (CBN) with a comprehensive audit of its finances for two years as a prerequisite for direct remittance of their allocations, it was learnt yesterday.

    The direct revenue disbursement was originally scheduled to commence last month but had to be deferred at the last minute because many of the councils failed to submit the necessary details required to facilitate the direct payments.

    Their share of N361.754 billion from the distributable revenue of N1.424 trillion for the month was subsequently channeled to them through the states.

    Read Also: African Central Bank chiefs in Abuja to chart way forward

    The apex bank is already in the process of opening accounts for the LGs to enable them receive their allocations directly from Abuja under the financial autonomy sought for them from the Supreme Court by the federal government. 

    The next allocation is due in a few weeks and there were doubts yesterday about the ability of the LGs to submit the two-year audit reports demanded by the CBN before the February meeting of the Federation Account Allocation Committee (FAAC) in Abuja where the allocations are made.

    Sources at the CBN told The Nation that the bank could not open accounts for the LGAs without a thorough understanding of their current financial status.

    “We cannot just open fresh accounts for the LGAs when many of them have not operated as an independent government entity,” one of the sources said.

    The official said the audit report was important.

    An Inter-Ministerial Committee headed by the Secretary to the Government of the Federation (SGF) is developing a framework to enforce the Supreme Court judgment on local government autonomy.

    A member of the Committee revealed that a template is being developed to authorise the Accountant General of the Federation (AGF) to directly deduct funds designated for specific areas like primary education, healthcare, and other constitutional responsibilities of LGAs from their FAAC allocations and transfer them to the relevant agencies.

  • Did we have a Central Bank of Nincompoops? (1)

    Did we have a Central Bank of Nincompoops? (1)

    There are stories that break out on the social media these days that responsible Nigerians swiftly dismiss as fake or fabrications. Often, these tales are crafted to attract ‘likes and comments’ by wannabe media gurus or social media influencers. In many instances, these individuals, with their warped mindsets, edit videos to align with the propaganda they wish to spin for or against specific individuals, ethnic groups, or political parties. Given the numerous examples where practitioners of this dark art of journalism have deceived millions of Nigerians, many of us have learned to tread carefully when encountering certain stories about Nigeria, especially those likely to impugn the integrity of our nation and our collective humanity.

    Even when some say there is nothing surprising about Nigerians amid the entrenchment of corruption as an unsung national ethos, a significant portion of the populace still believe that there should be limits to the mad race to empty the national treasury. Unfortunately, holding on to that belief becomes increasingly difficult with the kind of stories filtering in from the courts about how millions of dollars and billions of naira were brazenly stolen from the Central Bank of Nigeria (CBN) under the leadership of Mr. Godwin Emefiele during his nearly 10 years as governor of our once-revered apex bank.

    Before delving into the humongous and sickening pillages allegedly perfected under the watch of the embattled ex-governor, let me first question the recruitment policy into that bank. In nations that prioritise corporate integrity and robust, competitive financial system, top-notch professionals and brilliant minds in education and technology sectors are lobbied to work in such places. These are countries that understand the importance of having an integrity-based and a truly independent financial institution to regulate their monetary system, not one that shamelessly serves as a conduit for financial malfeasance and bare-faced robbery! The authorities must know that the rot within the CBN began with the under-the-table recruitment policy, hiring all manner of persons into the well-paying institution.

    Reports indicate that the easiest way to get a job at the CBN was through a recommendation letter from an influential senator, governor, or even the Presidency. Alternatively, one might buy one’s way in by paying huge sums to secure a future with the bankers’ bank. Let no one argue with this because it is a notorious fact confirmed by the actions and inactions of known lawmakers in Abuja. For instance, a serving senator once retorted, “Let’s say I have a ward in CBN, is there anything wrong with that? My daughter for example or my son or whatever, because I am a politically exposed person, does that take (away) the right of my ward or my relatives to work in CBN?”

    The same senator had once argued that should Nigerians insist on the death penalty for looters of the economy, it must be graded so that those who looted a few millions receive lighter punishments; while those caught with billions face harsher penalties.

    The problem is that they always dribble their way through the hard questions shamefacedly. He didn’t tell us how his daughter got the job at the end of his rigmarole. The fact remains that the eggheads and academic wizards with impeccable degrees and certificates hardly get the opportunity to work in Nigeria’s leading firms, where their services are most needed. Their ‘slots’ and those of many struggling others who daily crave a place in the sun are usually ‘distributed’ to candidates of lawmakers, top political aides, governors, presidents, billionaires, and chief executives. Oftentimes, government agencies write to these privileged Nigerians, pleading with them to submit names of candidates for employment. If you are lucky to ‘make the cut’ in any of these lists, your employment is guaranteed. This, in a nutshell, is how the CBN’s staff strength had been growing in leaps and bounds over the last 25 years of Nigeria’s political trajectory.

    The story is no different in other government agencies, including the Bank of Industry and related government-owned financial institutions. Professionalism is the first thing that gets sacrificed, followed by lack of a deep sense of commitment. Some employees don’t even know the mandates of the agencies they work for aside the fact that they earn seven-digit salaries while their better-qualified colleagues elsewhere wallow in penury.

    Read Also: EFCC arrests two ex-bankers for stealing dead customer’s N4.1m

    If an inventory of staff recruitment were to be taken at the CBN today, it will , no doubt, be filled with the names of the sons and daughters of the men and women of power in the country; that of paramours and side chicks and a sprinkling of lucky persons here and there. That is the sad tale of this country. It is the reality we have come to accept as the norm. Thousands of the unemployed in Abuja today quietly wait for the day one Senator or the other would give them a note to one chief executive or the other. Some have waited for years without any luck. Yet, they cling to hope as depression kills them silently. Pity.

    To understand how badly the CBN had failed in discharging its core mandate, it is imperative to revisit its key functions as outlined in several publications. The Central Bank is mandated to promote economic growth and stability by regulating the money supply and interest rates; overseeing commercial banks, ensuring their stability, and enforcing banking laws and regulations; providing emergency loans to banks during financial crises; managing the supply and distribution of currency and coins; identifying and mitigating risks to the financial system; overseeing the infrastructure for transferring funds between banks; managing foreign exchange reserves and regulating international transactions; providing funding for development projects and initiatives; conducting economic research to inform policy decisions; and managing government accounts, collecting taxes, and issuing government securities.

    No doubt, the CBN has more than enough responsibilities and, ordinarily, it shouldn’t have the time for frivolities if it were seriously devoted to its core mandates. Unfortunately, the contrary has been the case.

    Truth be told, the problems didn’t start with Emefiele. There were flashes of derailment under the management of Prof. Charles Soludo and even during the tenure of the Emir of Kano, Sanusi Lamido Sanusi, when the CBN gradually became the epicentre of rent-seeking and portfolio dollar trading by close associates and insiders. The problem is that gross misconduct became glaringly apparent under Emefiele, making him the poster boy for all that is bad with the CBN. Surely, no bankers’ bank deserves such a denigrating image and culture of gross non-professionalism.

    •…..to be continued next week

  • Why Central Bank must bring down inflation, by Sanusi

    Why Central Bank must bring down inflation, by Sanusi

    • ‘Give agric priority’
    • Cardoso: we are changing apex bank’s policy direction

    Strategic steps must be taken by the Central Bank of Nigeria (CBN) to drive down inflation and halt further erosion of wealth, a former governor of the apex bank has said.

    Dr. Muhammad Sanusi advised the incumbent CBN Governor, Dr. Olayemi Cardoso, to initiate policies that will rein in inflation, which he noted had severely impacted the economy.

    Sanusi, the 14th Emir of Kano, spoke when he led members of the Impact Investing Community on a courtesy visit to Cardoso at the CBN headquarters in Abuja.

    The inflation rate has maintained a long streak of consecutive increases over the months. 

    By September, it stood at 26.72 per cent after seven consecutive increases – the highest in over a decade.

    According to Sanusi, CBN’s activities have a massive impact on lives.

    He added that many people often “do not know the impact of a central bank’s works until a central bank fails.”

    He acknowledged the importance of long-term planning by the CBN in achieving its goals.

    Sanusi emphasised the need for fiscal authorities to focus on agriculture and education, especially for the girl-child.

    Expressing delight at his visit to Cardoso, Sanusi pledged continued support by the Impact Investing Community to the CBN.

    Read Also: Central Bank lifts restrictions on domiciliary account

    Cardoso reiterated that under his watch, the bank will focus mainly on the core mandate of price stability.

    He restated his team’s determination to change the narrative about the apex bank and make it more efficient.

    Cardoso said: “At the end of our tenure, we want to look back and see that our policies have positively impacted people’s lives.”

    He noted that the Impact Investing Community represents an excellent future for Nigeria.

    He believes in its potential to transform the country’s economy by tapping into the investment opportunities available.

    Commending the quality of leadership at Impact Investing Community and its effort to create awareness as well as build partnerships, the CBN governor said the bank would collaborate with it on frameworks that will encourage investments to drive economic growth.

    Chairman of the Impact Investing Community, Mrs. Ibukun Awosika, said they were at the CBN to register their willingness to support what the bank and the Federal Government were doing in changing the local investment climate by redirecting resources to areas where they will make the most positive impact.

    According to her, over $200 trillion was available globally for investments, $1 trillion of it for impact investing.

    She added that Impact Investing, with a presence in over 41 countries, was willing to blend with traditional investment practitioners.

    Stressing the importance of social investment, she sought the support of the CBN to enable the body to achieve its goal.

    CBN Deputy Governor in charge of Corporate Services, Dr. Bala Bello, underscored the importance of investments, noting that global capital was moving towards social investment.

    He noted that collaboration and effective communication were vital to successfully navigating the prevailing challenges.

    Impact investing refers to investments made into companies, organisations, and funds to generate a measurable, beneficial social or environmental impact alongside a financial return.

  • CBN slashes interest rate to 13.5 percent

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has for the first time in over two years adjusted interest rate downwards to 13.5%

    Addressing journalists at the end the second MOC meeting in 2019, Central Bank Governor Godwin Emefiele disclosed that “the MPC voted to adjust the Monetary Policy Rate (MPR) by 50 basis points from 14% to 13.5%; retain the asymmetric corridor of +200/-500 around the MPR; retain CRR at 22.5% and retain the liquidity ratio at 30%.”

    Emefiele stated that in arriving at the decision to adjust MPR (interest rate) downwards, “the committee was convinced that doing this will further uphold the bank’s commitment to promoting strong growth by way of encouraging credit flow to the productive sectors of the economy.”

    He noted that “the MPC also felt that through loosening by a marginal rate, will serve to manage the sentiments in the capital flow market owing to the wider spread in yields in the emerging markets and the developing economies relative to the advanced economies. Moreover, the real interest rates will still remain positive.”

    When asked if there was a relationship between slashing interest rates and the loosening stance of the MPC as signalled on Tuesday, and funding Small and Medium Enterprises (SMEs) Emefiele stated that, “to a reasonable extent, there is a relationship between lending to not just SME but to the agriculture, manufacture and the real sectors of the economy and our decision today. The reason being that if you consider the fact that for instance, January 2017, inflation had attend the level of risen 18.72 percent and by December 2017, as a result of the pressure on the foreign exchange market, reserves have dropped to about $23 billion and by that same month, even what was accruing into central bank had dropped to about $500 million from as high as over $3 billion sometime in August 2013/2014.”

    Emefiele added that “exchange rate as a result of the pressure had accelerated to as high as N525 to a dollar. But if you compare those numbers with where we are today, the inflation at 11.3 percent, foreign reserves at close to $45 billion, and we feel this trend will continue. Exchange rate converging in all the markets at between N358 to N360, GDP being in positive trajectory consecutively for five to six quarters then you will agree with me that there is relative stability and we have proved that there is sustainability in the level of macroeconomic indices in Nigeria.”

    Defending the decision further, Emefiele noted that “having being on this part particularly the MPR at about 14% since July 2016, and with the relative stability we have seen in the macroeconomic variables over the last two to two and a half years, we just think that this should be the next phase where we begin to think about consolidating growth. This should be the next phase where you should be talking about how do we create more jobs and reduce the level of unemployment in our country for people.”

    “We believe this should be the next phase where we should be talking about how do we diversify the base of the Nigerian economy? And that in doing that, we will continue to keep our eyes on the stability that we have achieved so far in the macroeconomic environment – I mean we will continue to do what we have been doing that is keeping inflation low, we will continue to do what we are doing that is keeping the exchange rate stable, we will continue to do what we are doing to ensure the reserves remain on positive trajectory at comfortable levels to be able to sustain the level of growth in our economy.”

    All these notwithstanding, Emefiele was cautious when said “there is a need for us to say, listen, we need to consolidate on what we have achieved so far and that is to begin to look at the level of growth again. Looking at growth again also means that while keeping our eyes on those other parameters, let’s see whether we can signal a direction from the monetary policy to the direction of supporting and really accelerating growth in the country.”

    Accelerating growth he said “means that we need to push harder to consolidate GDP, we need to push harder to make sure we create jobs and we need to push harder to diversify. So doing this will naturally mean that we are softening gradually but I repeat and it shouldn’t be mistaken that we will continue to do what we are doing, what we have done in the past keeping inflation at a moderated level, we will continue to do so. I think we are moving in the right direction.”

    Asked if this new level of easing on the interest rate will put pressure on the Naira, the CBN Governor said, “the answer is a capital NO, I don’t see that. Like I just told you that we have seen stability in the market over the last two to two and a half years and there is no need for anybody to worry. We will withstand any pressure.”

    When questioned if Nigeria is prepared for any economic pressure, the governor answered by saying, “we have gone through it in 2015, 2016 and 2017, with the support of everybody, our management and MPC members were able to overcome such challenges and I do not think that there is any challenge that the management of the Central Bank cannot surmount. We would surmount them.”

    On the growth projection of 2.7% by the CBN, Emefiele said, “we have actually being in positive growth trajectory in the last five to six quarters with an average GDP growth of about 1.9%. I think that if you look at the trend from 2017 into 2018, we will naturally say that if we push hard, even harder than we have done in the past, that we should be able to attain the 2.7% and 3% growth. What we are just trying to say here is that with the data available, and with consistency and with the push, that we are positive we will be trending towards 2.7% to 3% in growth rate which is actually not fantastic if you consider where Nigeria’s growth trajectory has always been around 5%.

  • INEC begins movement of sensitive materials to 16 Ekiti LGs

    The Independent National Electoral Commission (INEC) in Ekiti on Wednesday began movement of sensitive materials for Saturday’s rescheduled Presidential and National Assembly elections to the 16 local government areas.

    The News Agency of Nigeria  (NAN) reports that sorting and distribution of the materials took place at the temporary site of the state branch of the Central Bank on the State Secretariat Road, Ado Ekiti.

    Among the items distributed were card readers, ballot papers, result sheets, and different forms and registers.

    Representatives of leading political parties such as the PDP and APC were on hand to monitor the distribution exercise.

    Dr Muslim Omoleke, the INEC Administrative Secretary in the state, who doubles as the Acting Resident Electoral Commissioner, said it was part of  proactive measures devised by the commission to  ensure a hitch-free exercise.

    He said the exercise,  which began about 2.00 p.m on Wednesday,  would be concluded  before the close of work on Thursday.

    Omoleke assured that the commission was not leaving any stone unturned toward achieving a timely and hitch-free exercise.

    NAN reports that the adjoining roads leading to the apex bank were barricaded by stern looking mobile policemen keeping vigil.

    Speaking on the development, the PDP representative at the Central Bank, Mr Oluwalafe Sunday,  expressed satisfaction that all the sensitive materials were intact and distributed accordingly.

    His APC counterpart, Mr Garuba Arogundade,  also expressed satisfaction with the process.

    He said his only area of concern was that INEC should have started the distribution days earlier so as not to be under pressure.

    Also commenting, the MEGA Party representative, Mr Femi Oladipo,  commended INEC for making efforts to live up to its promise of making sure all election materials got to polling booths on record time on the day of the election. (NAN)

  • NEC, National Council of State to consider N30,000 Minimum Wage

    The Federal Executive Council (FEC) meeting on Tuesday resolved to take the N30,000 new national minimum wage request to the National Economic Council (NEC) meeting scheduled for Thursday at the State House, Abuja.

    The request will also be presented to the National Council of State fixed for January 22.

    The FEC meeting chaired by President Muhammadu Buhari also launched a new 60-page and 10-year Nigeria international passport.

    The Minister of Information, Lai Mohammed, while briefing State House correspondents at the end of the emergency FEC meeting, said that the N30, 000 minimum wage request will be taken to NEC.

    He didn’t give details about the minimum wage request as he pointed out that it was still work in progress.

    Asked to speak on the minimum wage request discussed at the meeting, he said: “l cannot because it is work in progress, since it will also be discussed at the National Economic Council (NEC) meeting before we come out with the decision, thereafter, we can brief the media.”

    Read Also: I am ready to pay N30,000 minimum wage – Gov. Emmanuel

    A reliable source, who spoke on a condition of anonymity, also disclosed that the wage request will be presented to the National Council of State.

    Members of the NEC include governors, who mostly have opposed the N30,000 new minimum wage and agreed to pay N22,500 and Ministers of Justice and Finance and Central Bank Governor as members.

    The organised labour has given the Federal Government up till January 23 to submit executive bill to the National Assembly or risk an industrial action.

     

  • The marriage between value proposition and distruptive fintech innovation: The key to deepening financial inclusion in Nigeria

    Financial inclusion as a challenge is a mysterious concept. Experts agree that there is a pressing problem that needs immediate solution. Scary numbers are thrown about. Two billion people are excluded globally and a whole lot more are underbanked, lacking access to the suite of financial services they need to live, do business and thrive. There is a consensus that the current traditional banking system; driven by the brick and mortar infrastructures and underpinned by their legacy platforms holds little value for the excluded who at worst lack financial literacy, are innumerate and could do with a financial system that is affordable, simple, flexible, agile and solves more problems than it creates.

    In Nigeria, the problem is acute and The Central Bank, the Nigerian Communications Commission and other stakeholders have been very active. They have charted roadmaps, sponsored seminars, undertaken researches and has held numerous meetings as they seek to chart a formidable financial inclusion roadmap.

    However, whenever the stakeholders gather in their air-conditioned rooms, clad in three piece suits, colourful ties and squeaky clean shoes, they exchange ideas, make resolutions, formulate policies and launch products that adds no value in the quest to deepen financial inclusion in Nigeria.

    In such confusing sessions, some banks will show off their latest Artificial Intelligence programme that will replace Bank Tellers. Some will launch their Crowdfunding platform, others will start an impressive tirade on how Machine Learning and Big Data will revolutionize financial services. At the end of the session, thunderous applauses will ring out and yet the smallholder farmer, deep inside Mashegu in Niger State, Baruten in Kwara, Yala in Cross River or Otuocha in Anambra State is forgotten. The stakeholders will retire for tea or lunch and at the end of the day enter their big cars to their massive offices in Abuja or Lagos while congratulating themselves.

    The truth is that the financial inclusion challenges bedeviling Nigeria is wildly different from the one confronting Canada and United Kingdom. In developed economies, the demography is different. The literacy levels are higher, there are increased access to critical infrastructures like good roads and network services due to industrialization. Therefore the higher standard of living means that mobile penetration are optimal. These are the countries that should be launching financial inclusion services through products that leverages Machine Learning, Cloud Computing, Artificial Intelligence or even Internet of Things.

    Not Nigeria.

    There is a discomforting disconnection between the excluded and the Nigerian financial services system. The disconnection is in value proposition. It is the gap between what the butcher in Tangazza, Sokoto needs and what The CEO of a Nigerian Bank is delivering. The Butcher wants a payment system that will enable him deposit money and withdraw conveniently. The butcher would want the ability to process transactions offline securely. The CEO is offering him that finds it difficult to utilize his basic phone, an artificial intelligence powered chatbot that will assist him with paying bills, trading stocks and buying airtime. These suites of products is a mismatch. The system places the cart before the horse. In this case, the tail wags the dog.

    The system knows precisely what the financially excluded needs. At least they know that a robust, effective proposition accounts for a customer’s pain points and proposes a product that will address them. Therefore, when a bank states that they expect their Artificial Intelligence and Machine Learning platform to spearhead their financial inclusion quest, it reveals a disconnect. That should not be the purpose and certainly, without mincing words, chatbots and cloud computing has nothing to offer the excluded in Nigeria especially when we confront the realities of their demography. The excluded are either illiterate or semi-literate, despite mobile phone penetration ranked high at 84% in Nigeria according to the Nigerian Communications Commission, a lot of the excluded lack access to mobile phones and their locations often lack access to mobile network services. Indeed, the NCC has been confronting this issue headlong but has made incremental progress at best. Mobile network is a critical requirement for the basic mobile money offerings that rides on USSD. According to an article published by Business Insider, The number of Smartphone users in Nigeria stands at 97 million. This figure is impressive until one considers the demography of the users and its spread. Further still, a juxtaposition with the population of the country, touted at 180 million people reveals that only roughly half of the population have smartphones. Smartphones are usually clustered in the cities and often concentrated in the hands of the middle class who can afford to own two or three smartphones.

    So maybe the mobile phone might not replicate its MPesa utility in Nigeria. Particularly, I believe that the payment system that will deepen financial inclusion in Nigeria measurably is the system that simplifies transaction, give consumers decisive powers over their accounts while sparing them from the irrelevant processes. That system will be underpropped by a strong agency network. A customer in remote locations should be able to replicate the basic banking scenarios at an Agent Location. She/He should be able to present an ID, thumbprint or input a PIN to withdraw or deposit from her account. A basic, low-end phone equipped with calls and text messaging capacity costs averagely between $10 – $20. This is costly, especially when About 152 million Nigerians live on less than $2 a day, representing about 80 per cent of the country’s estimated 190 million population (Africa Development Bank). In sharp contrast, an ID card costs less than a dollar and the government can provide that free of charge. That could be a veritable payment tool and will not take too much thought.

    The problem seems to be a lack of will. Nigerian entrepreneurs are incredibly smart. They have seen the opportunity in the sector. Foreign Direct Investment into innovations or products targeting financial inclusion in the past 5 years is already above $20m. There is an entire unserved segment of the market to capture and the potential return on investments far outweigh the risks. At the danger of sounding crude, there is money to be made by striving to include the excluded. The stakes are about over 70 million new customers. According to EFINA, billions of Naira circulate through the informal sector (Informal sector according to EFINA is anyone who do not have any banked or formal other products, but have access to or use only informal services and products eg. Esusu/Ajo) which could be a source of resource mobilization resulting in a positive impact on Nigeria’s economic growth and development. Their earlier Access to Financial Services in Nigeria 2014 survey revealed that 25.5 million adults save at home; if for illustration, just 50.0% of these adults were to save N1,000 per month in the formal sector, then up to N153 billion could be mobilised annually, this indicates there is a significantly large un-tapped market for formal savings products which is sufficient data for CEOs of Financial Institutions could craft a business strategy around.

    Does it mean that our business development experts and corporate strategists are not seeing this palpable need and opportunity to reach the excluded through a deliberate disruption of the financial system driven by innovative financial technology and a strong value proposition? Are we victims of a self-imposed glass ceiling that advises a one-size fits all strategy to solving the exclusion puzzle? Must it be either Mobile Money or the highway?

    Some FinTech organizations have started looking at the possibilities of leveraging disruptive processes and technologies towards driving the inclusion of the unbanked. Launching QR based payment platforms that can enable beneficiaries access their accounts at remote locations ID cards, NFC payment technologies and Biometric-based payments models, layered on top of an innovative agency network and management model, Fortis Mobile Money has emerged as a partner of choice for both The Federal Government and International Non-Governmental Organizations. The organization wields a most critical understanding of the base of the pyramid propositions and has included offline options for their cash transfer programs. Digital Finance for Rural Agricultural Development (DIFRAD) which was also launched to wide publicity found an innovative way to fund smallholder farmers and has currently channeled funding to fifty farmers who has farmed six hectares of rice in Kaduna by partnering with banks and cooperative organizations.

    Suffice to note that these drives were established in partnership with Banks, Microfinance Banks, Cooperative Societies and Payment Terminal Service providers because the organization is running on a mobile money license from The Central Bank of Nigeria.

    There is a war. A war of will. The will to innovate. To create something new.

    Regulators are willing to entertain innovations from the private sectors and have expressed a willingness to run an agile system that will protect consumers’ interest and still allow innovation to have expression.

    The only thing holding us back is a stubborn refusal to give consumers what they are asking for. The Bible cites that as wickedness, for “which of you fathers, if your son asks for a fish, will give him a snake instead?”  

    In business, that is no way to get results.

    Pius Okwuanya is a Digital Finance Professional with avid interest in FinTech innovation and disruption.

     

  • N17.258b judgment debt: Why court froze INEC’s accounts

    Facts emerged Friday why a Federal High Court in Abuja froze accounts owned by the Independent National Electoral Commission (INEC) in banks particularly Central Bank, First Bank and United Bank for Africa (UBA).

    INEC’s accounts in CBN, First Bank and UBA are: 002-01224-42021 and 002-01224-41032 domicile in Central Bank of Nigeria (including all funds held in both accounts).

    Others are: 2022050942 and 2022050904 in First Bank (with balances of N1, 578,696,848.84 and N600, 270,638.00); and 1005393548 in United Bank for Africa (with balance of N52, 000,000.00).

    The temporary freezing order was made by Justice John Tsoho upon an ex-parte motion filed by a Lagos-based firm – Bedding Holding Limited (BHL) – for a ganishee order nisi.

    The Federal High Court had on January 28, 2014 gave a judgment against INEC, its then Chairman, Prof Attahiru Jega, the Attorney General of the Federation (AGF) and three others in a suit marked: FHC/ABJ/CS/816/2010, filed by BHL.

    Other defendants in the suit were Haier Electrical Appliances Corporation Limited, Zinox Technologies Limited and Avante International Limited, who were contractors to INEC, engaged to supply equipment that it deployed for voters’ registration prior to the 2011 elections.

    BHL had sued, accusing INEC, Jega and other defendants of infringing on its exclusive “Patent Rights “No: RP16642 and Copyrights Design No: RD13841 in and over Electronic Collapsible Transparent Ballot Boxes (ECTBB) and Patent Rights No: NG/P/2010/202 – Proof of Address System/Scheme (PASS) – Embedded with the Concept of the Coded Metal Plate.”

    The firm claimed that the inventions, which its exclusive patent and copy rights covered, were deployed by INEC and the other defendants “for the production of voters’ register for the 2011 general elections, among other elections, without its prior license, consent and authorisation.”

    In a judgment on January 28, 2014, then Chief Judge of the Federal High Court, Justice Ibrahim Auta, agreed with BHL’s claims and granted all its declaratory and monitary reliefs against the defendants.

    Justice Auta ordered among others, that BHL “is entitled to 50 per cent of the total contract sum of N34, 517,640,000.00,(which is N17,258,820,000.00) being the minimum reasonable royalty accruable to the plaintiff for the production, procurement, supply, acquisition, importation, purchase, receipt, sale of the Direct Data Capturing Machine, laptops and/or any other equipment ancillary to, or associated with the process and application of the said products for the registration of voters and or the collation/compilation and production of the voters’ register for the 2011 general elections and any other elections by the defendants, without first seeking and obtaining the consent of the plaintiff.”

    BHL’s ex-parte motion for ganishee order nisi, granted by Justice Tsoho on May 24, 2018 was in furtherance of the execution of the January 28, 2014 judgment.

    Former President of the Nigerian Bar Association (NBA) Wole Olanipekun (SAN), who saw merit in BHL’s case, led a team of lawyers, including two other Senior Advocates – Assam E. Assam and Karina Tunyan – to argue the ex-parte motion on May 24, 2018.

    Olanipekun, while arguing the motion, told the court that BHL had, since January 28, 2014 when the judgement was given, notified the judgment debtors and written the AGF on the issue.

    He said parties to the judgment had held several meetings on the judgment, but which have remained inconclusive, a development that informed the motion aimed at executing the judgment.

    BHL, in a supporting affidavit, said mediation meetings held on two occasions, by parties to the judgment, under the chairmanship of the Solicitor General of the Federation/Permanent Secretary of the Ministry of Justice, “could not be concluded because the 1st judgment debtor (INEC) failed, refused and/ or neglected to attend subsequent meetings.”

    Although BHL”s motion for garnishee order nisi had all the six judgment debtors listed, it chose to proceed against only INEC and the AGF. It discontinued against Jega, Haier, Zinox and Avante.

    Justice Tsoho has adjourned to July 2 this year for the garnishee ( the 23 banks listed in the application) to show cause why the garnishee order nisi should not be made absolute (why the temporary freezing order should not be made permanent, compelling the banks to pay to the judgment creditor -BHL- the judgment sum).

  • FG to provide cheap funds to farmers – Emefiele

    FG to provide cheap funds to farmers – Emefiele

    The Federal Government will provide cheap funds of not more than five  per cent to farmers who wants to acquire agricultural equipment and feeds.

    The Central Bank Governor, Godwin Emefiele,  made this known on Thursday at the official launch of  Mitros  Ofada Rice in Abeokuta.

    Emefiele said the cheap funds  would help conserve foreign exchange as “we will no longer depend on foreign exchange to import agricultural produce.’’

    The apex bank  governor,  who identified lack of fish feeds as a major setback for fish farmers, also said the Federal Government would offer support to them.

    Emefiele commended Gov. Ibikunle Amosun of Ogun  for  the initiatives to create jobs and boost food security.

    “The Central Bank will continue to support anybody who makes an attempt to grow our agricultural sector.

    “ This is because by doing this, we provide food and jobs for our people and in doing this, we grow our economy.

    “Ogun State continues to demonstrate the urge to support the focus of the government to create jobs and grow the economy.

    “ A country that does not take agriculture seriously is naturally an unserious country.

    “We have a lot of people who wants to go into fish farming but the major problem is fish feeds. Be rest assured that if you identify yourself, you will be counted and we’ll support you,” he said.

    Also speaking, Kebbi State Governor, Abubakar Bagudu,  said the Federal Government had been taking  steps to revamp the agricultural sector so as to ensure food sufficiency.

    Bagudu, who is the Chairman of the  Presidential Task Force on Agricultural Commodities and Production, said  all the 36 states of the federation, including the Federal Capital Territory, have the capability to grow  rice.

    “With rice, I believe we can achieve what we have achieved,  even with a commodity like crude oil  because around the world, about 600 million metric tonnes of rice are  produced every year, and in Nigeria, we are still having a little less than 10 million.

    ” Our land size estimated by the Rice Farmers Association indicated that there are about 12 million rice farmers.

    “ This suggests that even if an average yield per farmer is the modest five  tonnes, that means  we should be producing 50 million tonnes, not under 10 million tonnes we are currently producing.

    “ Nigeria has the ability to produce rice competitively,’’ he said.

    Amosun, in his speech, said that the inauguration of mitros rice is an investment in the mission to rebuild the state.

    He said  the state had  attracted over 70 per cent of industrial investment, adding that his  administration would continue to partner with the Federal Government and private sector in boosting  food sufficiency  in the country.

    The governor  added that production of  Mitros rice had  also helped in creating jobs for farmers in the  state.

    “The Mitros ofada rice and other rice that we grow are planted, processed and packaged  by farmers from Ogun, ” he said.

    He urged  the people of  the state to partronise Mitros rice during the festive period instead of  foreign rice.

    The rice comes  in 50kg, 25kg,10kg, 5 kg and 1 kg bags.

    NAN

  • South Africa’s Central Bank accuses anti-graft watchdog of incompetence

    South Africa’s Central Bank has accused the head of anti-graft watchdog of incompetence, following her proposal to switch the target of its monetary policy from inflation and currency stability to economic growth.

    Public Protector Busisiwe Mkhwebane set off a political row and sparked a selling frenzy in the rand currency last month when she said the Reserve Bank current mandate focuses on a “few commercial interests”.

    In a scathing court filing, Governor Lesetja Kganyago said the constitutionally mandated watchdog was “reckless” and her later explanation of the report showed a lack understanding of the constitution and the Central Bank’s powers and functions.

    “This is a grave, rudimentary error,” Kganyago said. “The only explanation that the Public Protector has offered for her clearly unlawful conduct exposes her own lack of competency.”

    Opposition parties, Democratic Alliance and the Economic Freedom Fighters, have also branded Mkhwebane incompetent and urged her to resign or for parliament review her ability to execute her duties.

    Public Protector spokeswoman Cleopatra Mosana rejected the accusations of incompetence, saying Mkhwebane continued to “discharge her duties as prescribed by the constitution.”

    Mkhwebane has been in the job since October last year. Her proposal was also opposed in court by parliament and finance minister Malusi Gigaba, both of whom have said she over-stepped her powers.

    The call threatened to further stain South Africa’s credentials as an investor-friendly emerging market, coming less than a week after mines minister Mosebenzi Zwane spooked investors by raising the minimum threshold for black ownership of mining companies to 30 percent from 26 percent.