The Nation Newspaper

Tag: Central bank

  • Chamber urges journalists to emphasize enterprise, innovation among Nigerians

    Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has urged journalists to emphasis on the spirit of enterprise and innovation of Nigerians rather than recession.

    Rev. Ugochukwu Chime, President of ECCIMA, made the call while speaking with the News Agency of Nigeria (NAN) on Thursday in Enugu.

    He said that although the country was gradually getting out of recession, there was need to project those new enterprise and innovative ideas that Nigerians had come out with to survive the out-going recession.

    “We are now having a change in the economic narrative of the country.”

    The chamber boss noted that Nigerians had been creative now than ever before, especially finding ways to manage their businesses and homes better.

    “Our youths are highly enterprising in the entertainment, creativity and art world; thus, fighting their way from the national market to the global stage,’’ he said.

    According to Chime, that is the new spirit of Nigeria and Nigerians which people must discuss and journalists must write and promote.

    “Promoting these new enterprise and innovation will further create jobs, wealth and check restiveness,’’ he said.

    The chamber boss, however, commended the Central Bank of Nigeria for maintaining sound fiscal and monetary policies.

    “I must thank Mr President for creating the space and empowerment to fight corruption.

    “Also, I am not forgetting vast majority of Nigerians who had joined the anti-corruption crusade of the government to ensure that public funds are no longer used for jamboree.’’ he said.

     

  • Central Bank, intelligence agencies and cash

    Central Bank, intelligence agencies and cash

    Watchers and followers of American history would readily admit that one of the most enduring scandals of the Ronald Reagan Administration was the clandestine sale of arms to Iran, at the time a sworn enemy of the US, with some of the proceeds sent to a South American Rebel group in cash. This scandal, generally referred to as the Iran-Contra Affair, led to an unreserved apology to the American people by President Reagan on 13th August 1987.

    In a slightly related circumstance, about 3 months to the end of the Barack Obama administration, news broke that the US administration had ferried over $1.7 billion equivalent in foreign cash to the Iranian government. The monies drawn from the Federal Reserve Bank, the equivalent of our Central Bank of Nigeria (CBN), were paid in “Swiss Francs, euros and other currencies”, the department of Treasury later confirmed.

    The covert payment to Iran was also used as leverage to guarantee the release of four American prisoners.

    One can also recall the scandal that broke in February 2000 when it was alleged that about US$20 million was paid in cash from Germany’s intelligence agency, known as the BND, to the favored political parties from 1974 to 1982 while Helmut Schmidt, a Social Democrat, was chancellor.

    It is open knowledge that elite intelligence agencies like the CIA, MOSSAD, MI5 and others, mostly prefer to fund their operations in cash for ease and also so as not to leave money trails. It doesn’t matter what the operation is – whether it is to topple a foreign government, protect the homeland or counter-terrorism, etc., the mode of transaction is preferably cash. This is why their budgets are called black budgets – there dealings are opaque – no records – no receipts – It is that simple.

    I have never read or heard in the news where the central banks of these governments are being vilified and hounded for funding these duly approved cash requests except of course lately in Nigeria. Why is this so? Your guess is as good as mine – the politics of power.

    The Central Bank of Nigeria is the banker of the federal government and its corresponding agencies. The relationship we have with our banks is same one that these government agencies maintain with the CBN. For example, if I write you a cheque and you take it to the bank for payment, the teller will simply pay you, if my account is funded and the signature(s) match. In fact, sometimes you are asked, “How do you want your money – N1000 or N500 notes”. The teller is not going to ask you what you intend to do with the money nor will they ask the account owner why he/she is giving money to the person withdrawing.

    I am using this simple analogy to highlight the disgraceful and dangerous plot being executed by some powerful but disgruntled persons to continue to taint and discredit an institution as sensitive as the CBN because it made duly authorized payments to security agencies for clandestine operations. Even though the cash payment being investigated now occurred during the administration of Goodluck Jonathan, reliable sources within the intelligence and financial industry confirm that this practice of paying cash to intelligence agencies such as the NIA, NSA, SSS, and Defence Ministry, is so routine that it has undoubtedly continued under the administration of President Muhammadu Buhari. If indeed this administration found it so horrible that the CBN pays cash to these agencies, why did it continue this practice? Your guess is as good as mine—politics? Giving a dog a bad name so as to kill it?

    The disgraceful infighting amongst our so-called elite security agencies which has led to washing of their dirty linens in public is a huge embarrassment to not only the federal government but to Nigerians in general. (Let me leave this for future discourse but suffice it to note that the Osinbajo Panel and President Buhari should heed the warnings of Prof. Bolaji Akinyemi on this matter).

    For those who have not read the Sunday piece by the respected foreign affairs professor and former Foreign Minister, let me quote some paragraphs:

    “External intelligence officers, otherwise called spies, do not operate under the same operational penalties as domestic intelligence officers.

    “Under no circumstances should the report of the panel in as far as it relates to the activities of the NIA be made public and no more leaks from the panel… Normally, foreign intelligence activities are shrouded in secrecy, and not in the glare of publicity.”

    “… Countries go to incredible lengths to hide the identities of their agents both domestic and foreign and their operations. No receipts get issued. Budgets are called black budgets because they are never publicly acknowledged.”

    The CBN since its founding in 1958 has been paying out cash to government and its agencies to fund various operations whether they are covert or otherwise. This practice has been standard under all Presidents including this one. The CBN since the past leadership of Roy Pentelow Fenton through Clement Isong, Adamu Ciroma, Paul Ogwuma, Lamido Sanusi and now Godwin Emefiele at various times have paid out millions of dollars in cash to the federal government and security agencies to fund one operation or another. In fact, I gathered that Nigeria’s last intervention in The Gambia that led to the eventual peaceful ousting of strongman Yahyah Jammeh from power in January was funded by tens of millions of dollars in cash provided by the CBN to the Defence/NSA.

    My point is, we must stop this silly culture of destroying the integrity of our revered institutions because of selfish interests and agendas. If any person or group wants to take up issues with how Nigeria’s funds are being spent then it must channel that effort to the right office and not the CBN. The CBN is just a bank – it has a civic and constitutional duty to pay when a mandate is presented with all approving signatories verified and of course with the account holders’ account funded accordingly.

     

     

    • Ogannah is Publisher of Thewill Newspaper (www.thewillnigeria.com)
  • Buhari gets briefs on foreign exchange stability

    Buhari gets briefs on foreign exchange stability

    President Muhammadu Buhari on Thursday received briefings from the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on the stability in the Foreign Exchange market and other activities of the apex bank.

    Speaking with State House correspondents at the end of the closed door meeting, Emefiele said that the President was delighted over the stability in the forex market.

    He explained that the parallel market is currently stabilising at between N380 and N385 against one US dollar.

    He said ‘`Basically as it is expected what we normally do is from time to time to brief the President about activities about the Central Bank of Nigeria particularly at this time as it relates to the efforts that the Central Bank is doing to stabilise the forex market

    “We briefed him regarding the activities so far and he was very delighted to hear that the market is stabilising at the level that it is right now and I am saying the parallel market which currently stabilises at between N380 and N385,’’ he said.

    According to him, the sudden rise in crude oil production and the subsequent increase in export of the commodity are the main factor responsible for the stability in the forex market.

    He said that the crude oil prices which has been oscillating between 50 and 56 dollars per barrel, have helped to boost the nation’s revenue position and also provided some ammunition for the Central Bank to defend the currency.

    He said: “Given what we have right now the fact that the revenues are looking good, the state of the economy is good and I believe that we are going to pull out of the problem in due course.’’

    He also reassured that the apex bank would continue to make the foreign exchange available to those in need to enable them to import or carry out eligible transactions.

     

  • Central Bank, intelligence agencies and cash

    Central Bank, intelligence agencies and cash

    Watchers and followers of American history would readily admit that one of the most enduring scandals of the Ronald Reagan Administration was the clandestine sale of arms to Iran, at the time a sworn enemy of the US, with some of the proceeds sent to a South American Rebel group in cash. This scandal, generally referred to as the Iran-Contra Affair, led to an unreserved apology to the American people by President Reagan on 13th August 1987.

    In a slightly related circumstance, about 3 months to the end of the Barack Obama administration, news broke that the US administration had ferried over $1.7 billion equivalent in foreign cash to the Iranian government. The monies drawn from the Federal Reserve Bank, the equivalent of our Central Bank of Nigeria (CBN), were paid in “Swiss Francs, euros and other currencies”, the department of Treasury later confirmed.

    The covert payment to Iran was also used as leverage to guarantee the release of four American prisoners.

    One can also recall the scandal that broke in February 2000 when it was alleged that about US$20 million was paid in cash from Germany’s intelligence agency, known as the BND, to the favored political parties from 1974 to 1982 while Helmut Schmidt, a Social Democrat, was chancellor.

    It is open knowledge that elite intelligence agencies like the CIA, MOSSAD, MI5 and others, mostly prefer to fund their operations in cash for ease and also so as not to leave money trails. It doesn’t matter what the operation is – whether it is to topple a foreign government, protect the homeland or counter-terrorism, etc., the mode of transaction is preferably cash. This is why their budgets are called black budgets – there dealings are opaque – no records – no receipts – It is that simple.

    I have never read or heard in the news where the central banks of these governments are being vilified and hounded for funding these duly approved cash requests except of course lately in Nigeria. Why is this so? Your guess is as good as mine – the politics of power.

    The Central Bank of Nigeria is the banker of the federal government and its corresponding agencies. The relationship we have with our banks is same one that these government agencies maintain with the CBN. For example, if I write you a cheque and you take it to the bank for payment, the teller will simply pay you, if my account is funded and the signature(s) match. In fact, sometimes you are asked, “How do you want your money – N1000 or N500 notes”. The teller is not going to ask you what you intend to do with the money nor will they ask the account owner why he/she is giving money to the person withdrawing.

    I am using this simple analogy to highlight the disgraceful and dangerous plot being executed by some powerful but disgruntled persons to continue to taint and discredit an institution as sensitive as the CBN because it made duly authorized payments to security agencies for clandestine operations. Even though the cash payment being investigated now occurred during the administration of Goodluck Jonathan, reliable sources within the intelligence and financial industry confirm that this practice of paying cash to intelligence agencies such as the NIA, NSA, SSS, and Defence Ministry, is so routine that it has undoubtedly continued under the administration of President Muhammadu Buhari. If indeed this administration found it so horrible that the CBN pays cash to these agencies, why did it continue this practice? Your guess is as good as mine—politics? Giving a dog a bad name so as to kill it?

    The disgraceful infighting amongst our so-called elite security agencies which has led to washing of their dirty linens in public is a huge embarrassment to not only the federal government but to Nigerians in general. (Let me leave this for future discuss but suffice it to note that the Osinbajo Panel and President Buhari should heed the warnings of Prof. Bolaji Akinyemi on this matter).

    For those who have not read the Sunday piece by the respected foreign affairs professor and former Foreign Minister, let me quote some paragraphs:

    “External intelligence officers, otherwise called spies, do not operate under the same operational penalties as domestic intelligence officers.

    “Under no circumstances should the report of the panel in as far as it relates to the activities of the NIA be made public and no more leaks from the panel… Normally, foreign intelligence activities are shrouded in secrecy, and not in the glare of publicity.”

    “… Countries go to incredible lengths to hide the identities of their agents both domestic and foreign and their operations. No receipts get issued. Budgets are called black budgets because they are never publicly acknowledged.”

    The CBN since its founding in 1958 has been paying out cash to government and its agencies to fund various operations whether they are covert or otherwise. This practice has been standard under all Presidents including this one. The CBN since the past leadership of Roy Pentelow Fenton through Clement Isong, Adamu Ciroma, Paul Ogwuma, Lamido Sanusi and now Godwin Emefiele at various times have paid out millions of dollars in cash to the federal government and security agencies to fund one operation or another. In fact, I gathered that Nigeria’s last intervention in The Gambia that led to the eventual peaceful ousting of strongman Yahyah Jammeh from power in January was funded by tens of millions of dollars in cash provided by the CBN to the Defence/NSA.

    My point is, we must stop this silly culture of destroying the integrity of our revered institutions because of selfish interests and agendas. If any person or group wants to take up issues with how Nigeria’s funds are being spent then it must channel that effort to the right office and not the CBN. The CBN is just a bank – it has a civic and constitutional duty to pay when a mandate is presented with all approving signatories verified and of course with the account holders’ account funded accordingly.

    Austyn Ogannah is the Publisher of THEWILL Newspaper (www.thewillnigeria.com) and an advocate of good governance.

  • Senate probes N4trillion revenue leakage in Customs

    Senate probes N4trillion revenue leakage in Customs

    The Senate Committee on Customs, Excise and Tariff, has commenced investigation into over N4trillion revenue leakage in the Nigeria Customs Service (NCS) between 2006 and 2016.

    Chairman of the committee, Sen. Hope Uzodinma, disclosed this in an interview with reporters in Abuja. Uzodinma vowed that his committee would stop at nothing in recovering the money.

    Preliminary investigation by the committee, he said, revealed that the N4trillion leakage was as a result of various forms of infractions including abuse and non-implementation of Form M (foreign exchange form).

    He noted that other factors that may have been responsible for the leakage could have been wrong classification of cargo under harmonized system codes, non-screening of cargoes coming into the country and lack of adequate ICT infrastructure for revenue collection.

    Uzodinma said that cancellation of pre-arrival assessment reports, abandonment of single goods declaration may also have been responsible for the leakage.

    He said, “The Senate Committee on Customs has condemned the inability of the technical committee on the implementation of comprehensive import supervision scheme to ensure that the provisions of the Act are followed to the letter.

    “The committee frowns at the quantum of revenue losses and it will stop at nothing in ensuring that those involved in this ugly act would return all recoverable monies with them.

    “The committee also frowns at the level of collusion and corruption within the Customs Service.

    “At the end of our current investigation, all these will become a thing of the past and customs revenue will be enhanced and non-oil revenue will be improved upon.

    “What we are investigating is not money spent. It is the leakages.

    “For instance, I am supposed to pay XYZ amount of duty, I will abandon the documentation, go get fake documents, collude with customs, pay maybe a fraction of it and carry my goods. With that, the true import circle is not closed.

    “Another instance is that assessment is abandoned, or I fill the form M for example with a pro forma invoice, apply for foreign exchange in Central Bank, XYZ amount of money is allocated to me, money moves in but  no goods shipped.

    “I will then go get fake documents, collude with customs and then retire the allocation.”

    The committee chairman noted that this sharp practices, which also include round tripping and false declarations, had over time led to increase in the exchange rate. He said that it was also observed that in most cases, the amount of money spent was not commensurate with the volume of goods imported. According to him, his committee had started investigating activities of companies and banks indicted in the matter.

    He said, “We will not mention the companies involved because we are also very careful of the integrity and public perception of some of these companies, being that some of them are in the Stock Market.

    “We will be diplomatic in carrying out this investigation. This is to the extent that little or no damage will be done to the integrity and image of such companies provided that government revenues in their hands will be recovered.”

    He assured that investigation into the over N4 trillion leakage would be brought to a logical conclusion because it had to do with the economy and revenue loss.

    He further added that, “I am sure that the executive arm of government will be willing and interested to ensure that the monies that are littered here and there are recovered.

    “If they can pay up to five per cent to whistle blowers to recover money, it means in this case where no money is required or whistleblower required, they will be interested to do justice.”

    On the committee’s investigation into non-repatriation of proceeds from oil and non-oil products by Joint Venture companies, he said report on the investigation had been concluded.

    On the retrospective policy on payment of customs duties on old vehicles, Uzodinma noted that NCS overstepped its bounds by making policies rather than implementing them. The power to make policy for the service, he said, was vested in the Ministry of Finance.

    He said, “Having gone through the legislations and books available to my office as it has to do with the administration of the customs service, it only implements policies made by the Ministry of Finance.

    “So, it sounds very strange to hear that Customs gets up and says they are making a policy.

    “That is what I am yet to understand and there is no way to fathom that before the law.

    “The referral is already before us. I was waiting for him to appear before the senate before we commence a full blown investigation into some of those issues that have been referred to us.

    “Concerning the suspended policy on payment of customs duties on old vehicles, the committee will continue to interface with the service to ensure that the policy is cancelled not suspended.

    “The whole idea is about governance and governance is about the people and nobody is licenced or entitled to talk about the people more than the elected representatives.

    “So in my view there is no hullaballoo. We will discuss with them and wise reasoning will prevail,” he said.

     

  • MAN to Central Bank: reduce interest rate

    MAN to Central Bank: reduce interest rate

    Manufacturers yesterday pleaded for a rate cut to revive the sector.
    To the Manufacturers Association of Nigeria (MAN), retaining the Monetary Policy Rate (MPR) at 14 per cent by the apex bank would retard the sector’s growth.
    MAN President Frank Jacobs told the News Agency of Nigeria (NAN) in Lagos that the 14 per cent MPR would not boost domestic production.
    He said maintaining the present rate would prevent manufacturing from coping with the current recession.
    Central Bank Governor Godwin Emefiele had announced MPC’s decision to retain the MPR at 14 per cent at the end of its two-day meeting last week.
    Apart from retaining the MPR at 14 per cent, the CBN governor said the committee also voted to retain the Cash Reserves Ratio at 22.5 per cent.
    “We had thought that reducing the rates would enable banks to reduce percentage of getting loans to inject into the manufacturing sector to reflate the economy.
    “However, with the present circumstance, many domestic producers will be struggling to keep their businesses as a going concern and will not make profits.
    “As a result of the recession, most manufacturers will want to shed down workers, which will have negative social implication for the country,’’ he said.
    The MAN president urged the apex bank to reduce the interest rates in its next monitory policy meeting to ensure growth in the manufacturing sector.
    “It is only when rates are brought down that the manufacturers will be able to sustain and expand their businesses, even during recession,’’ he said.
    Jacob said with appropriate incentives, the manufacturing sector could cause an economic turnaround for the country.

  • Naira bounces back against dollar at interbank market

    Naira bounces back against dollar at interbank market

    The Naira on Wednesday appreciated against the dollar at the interbank market, the News Agency of Nigeria (NAN) reports.

    The Nigerian currency gained 50k to close at N304.50 compared to N305 it traded on Tuesday.

    At the Bureau De Change (BDC) window, the Naira was sold at N400 CBN controlled rate, while the Pound Sterling and the Euro traded at N565 and N500, respectively.

    Skeletal, but clandestine trading at the parallel market saw the Naira closed at N470 to a dollar, while the Pound Sterling and the Euro closed at N565 and N500, respectively.

    Traders said that dollar scarcity persisted in the market as dealers seek more unconventional ways of meeting the needs of their customers.

    NAN reports that the parallel market had been in the eyes of the storm as security agents were on the lookout for currency traders.

    The apex bank gave a nod to the ongoing crackdown on currency traders at its Monetary Policy Committee (MPC) meeting on Tuesday.

    Since the battle line had been drawn between the security agents and traders, dollar scarcity was expected to persist along the frontiers of the parallel market. (NAN)

  • Emefiele elected AACB President

    Emefiele elected AACB President

    The Assembly of Governors of the Association of African Central Bank Governors (AACB) has elected the Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele as its President for the 2016 – 2017 year.

    The decision to elect Emefiele as the next AACB President was taken at the end of the 39th Ordinary meeting which ended in Abuja on Friday.

    The communique issued at the end of the meeting noted that the unwinding of unconventional monetary policy (UMP) measures, adopted during the financial crisis by the United States Federal Reserve and central banks of developed countries, could have a negative impact on African countries due to the interconnectedness of economies.

    However, the congress noted that the unwinding of unconventional monetary policy (UMP) could be an opportunity for African countries to develop appropriate measures to strengthen their resilience in the face of exogenous shocks.

    The Assembly of Governors therefore stressed the necessity for African countries to diversify their economies and improve exports, while limiting imports and also emphasised the urgent need for coordination between monetary and fiscal policy across all African countries.

    The Governors equally examined the implementation status of the African Monetary Cooperation Programme (AMCP) and pointed out the inability of African States to sustainably meet some of the criteria for macroeconomic convergence due to the negative impact of certain variables within the international environment.

    They therefore urged African countries to strengthen efforts at implementing structural reforms in order to diversify their respective economies, improve the business environment and promote intra-regional trade as a way of strengthening their resilience amidst external shocks.

    In reviewing the implementation of the work programme of the Community of African Banking Supervisors (CABS), which it noted had helped to set up an intranet platform for exchange of information among African banks, the AACB disclosed plans to unveil a project for collecting information on the activities of cross-border banks. This, the AACB noted, would allow the identification of risks associated with the activities.

    Elected, alongside Mr. Emefiele, to run the affairs of the Bureau for the period are the Governor of the Bank of Ghana as chairman of the West African sub-region; Governor of the Central Bank of Mauritania, Chairman of the North African sub-region; and the Governor of the Bank of Central African States, Chairman of the Central African Sub-region.

    Also elected were the Governor, Banque de la Republique du Burundi as Chairman of the East African Sub-region and Governor of the Central Bank of the Kingdom of Swaziland as Chairman of the Southern African Sub-region.

    Reading the communique at the end of the meeting of Governors, the new AACB President, Mr. Emefiele disclosed that the nomination for the Vice Chairman of the AACB, which is zoned to the South African Sub-region, would be made known in due course.

  • Emefiele hosts Central Bank governors

    Emefiele hosts Central Bank governors

    Central bank of Nigeria (cbn) Governor, Godwin Emefiele, yesterday, began the hosting of African Central Bank governors across in Abuja.

    They are to discuss the effects of the shocks from the global economy on financial systems across the continent.

    As Co-Chair of Sub-Saharan Africa Regional Consultative Group of the Financial Stability Board (FSB),  Emefiele, alongside the Governor of the Reserve Bank of South Africa,  Lesetja Kganyago, is hosting the meeting at the Transcorp Hilton Abuja to find lasting, effective and common solutions that can be applied to African financial systems.

    The group will also be focusing on finding country-specific solutions that best suit individual African countries.

    In the aftermath of sharp drop in commodity prices, which is the main export and foreign exchange earner of most African countries, many financial systems across the world are still grappling with the adverse effects of these shocks.

    In attendance are the Governor’s of the Central Banks of Ghana, Lesotho, South Africa, Tanzania, Uganda and many others.

  • Central Bank defends monetary policies

    Central Bank defends monetary policies

    The Central Bank of Nigeria (CBN) has risen in defence of its monetary policies It said the restriction it placed on the access to the Foreign Exchange (FOREX) market for goods classified as finished products was done in best national interest.

    According to the apex bank, no amount of pressure would force it to carry out a premature review of its position on FOREX.

    CBN Governor Godwin Emefiele, who foreclosed an early review, said the apex bank would continue to deny importers access to FOREX to bring in goods that can be produced locally.

     “We think that because of the problems we’ve had, the drop in commodity prices and revenue accruing to the nation, and because we know that these items have been produced in large quantities in this country in the past, that provision still stands. The CBN is not reconsidering the ban, the exclusion still stands.” Emefiele said at the just-concluded International Monetary Fund (IMF)/World Bank Group meeting in Lima, Peru.

    Dousing tension over the direction of the economy following the sliding oil prices, the CBN chief assured Nigerians that the economy was not heading towards recession.

    According to him, the dwindling national revenue was a global phenomena and not peculiar to Nigeria. He said rather than interpreting some of CBN’s monetary and FOREX policies as sign that the economy was sliding into recession, Nigerians should accept the policies as a way of reversing declining revenue.

    His words: “Nigeria is not sliding into recession. We have had two quarters of slow growth; even the global economy has revised its growth outlook from 3.8 per cent in April to three per cent at this meeting.”

    Will Emefiele’s assurances assuage the fears of Nigerians? How the Buhari administration responds to the challenges facing the economy in the coming weeks and months will either allay, or aggravate the fears.