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  • CBN investigator rejects Lemo, others’ requests

    CBN investigator rejects Lemo, others’ requests

    • ’Bank owners must honour invitation today so as not to obstruct probe’

    The Special Investigator probing the activities of the Central Bank of Nigeria (CBN) and Other Related Entities, Mr. Jim Obazee, yesterday rejected an excuse by the Chairman of Titan Trust Bank Limited, Mr. Tunde Lemo, and two others not to appear for interrogation today. 

    Obazee threatened to make a recommendation to the CBN to ask the Federal Government to take over the two banks. 

    He accused Lemo and two others of alleged obstruction of his assignment. 

    The other invitees are the two largest ultimate investors in Titan Trust Bank Limited and Union Bank Plc, Mr. Cornelius Vink and Mr. Rahul Savara. 

    The trio were given today’s deadline to explain how they owned Titan Trust Bank and sourced $500million to acquire the Union Bank. 

    Barely 24 hours to their appearance before the Special Investigator in Abuja, they wrote through their lawyer that they will not be able to honour the invitation due to family reasons. 

    But the Special Investigator said their excuse was untenable. 

    He also said that documents submitted through proxies shall not be accepted. 

    Obazee alleged that Lemo was in the United Kingdom to celebrate his birthday. 

    He faulted the three invitees in a December 27, 2023 letter, through the Head of Operations, Office of the Special Investigator, DCP Eloho Okpoziakpo. 

    The letter was addressed to Lemo through the Acting Managing Director, Titan Trust Bank (TTB). 

    The letter reads in part: “Reference is made to the Law Firm of G.ELIAS letter dated 27th December, 2023 in response to the Special Investigator’s invitation to you via a letter with reference number CR:3000/TSI/ABJ/VOL.1/69 dated 24th December, 2023 in respect of the above subject. 

    “I am directed to inform you that the Special Investigator is fully aware that you are in the United Kingdom to celebrate your birthday. This you made aware to the Special Investigator when you agreed to attend a meeting to be scheduled for 28 December 2023 and also proposed that Mr. Cornelius Vink and Rahul Savara be given 7 (seven) days to prove their purported ownership of Titan Trust Bank and Union Bank of Nigeria or forfeit the shares to the Federal Government of Nigeria. 

    “Accordingly, this excuse given by your good selves through your lawyers is unacceptable and regarded as obstruction of the Special Investigator in the course of his duties.”

    The Special Investigator said he shall not accept documents submitted through proxies. 

    The letter added: “ We want to put it on record that neither you (Babatunde Lemo) nor Cornelius Vink nor Rahul Savara ever submitted any of these requested documents to the investigating team at Department of State Service (DSS) or anywhere else before now. 

    “ In fact, Cornelius Vink and Rahul Savara have never presented themselves to the Special Investigator since 28th August 2023 when they were first invited for interview. 

    “ The Special Investigator also directs that you should be informed that documents submitted through proxies shall not be accepted as Mr. Cornelius Vink, Mr. Rahul Savara and your goodself will be required to speak to whatever document(s)/information you present during the meeting. 

    “Consequently, I am to further inform you that your invitation to appear before the Special Investigator on 28 December, 2023 by 2pm prompt in respect of the matter under investigation and for which you had earlier made statement stands.

    “ Kindly note that the conditions on paragraphs 6 to 8 in our earlier letter fo you with reference number CR:3000/TSI/ABJ/VOL. 1/69 dated 24th December 2023 remains effective and shall be triggered if you or Messrs Vink and Savara fail to attend the meeting as scheduled. 

    “Accept please, the warm assurances of the Special Investigator’s high esteem.”

    Titan Trust Bank and the Union Bank Plc (UBN), through their counsel, Prof. Gbolahan Elias (SAN), had asked for more time. 

    Elias said Lemo and the two largest ultimate investors in the banks (Mr. Cornelius Vink; Mr. Rahul Savara) are not due to be in Nigeria before the second week in January 2024.

    In a December 27 letter to the Team of the Special Investigators, the counsel said the invitees “will honour the invitations fully soon after they come in.”

    But the counsel said the banks should resubmit all information required by the Special Investigator. 

    The letter was titled: “Re: CBN Investigation Activities: Invitation for a Follow Up Meeting with the Special Investigator.” 

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    The letter reads: “We trust that this letter meets you well. We are lawyers to: Titan Trust Bank Ltd. (“TTB”) and Union Bank Plc (“Union”) (the “Banks”). We respectfully have their instructions to write this letter in respect of the invitations in your letter to TTB dated December 23,2023. 

    “Unfortunately, both Mr. Tunde Lemo and the two largest ultimate investors in the Banks (Mr. Cornelius Vink; Mr. Rahul Savara) are away from Nigeria at the moment for family and other reasons. That is typically so at this time of the year. They are not due to be in Nigeria before the second week in January 2024. They will honour the invitations fully soon after they come in. 

    “With regard to the information requested, which we submitted earlier on 1st September 2023 at the DSS HQ as evidenced in Annex 1 therewith, we will resubmit the information tomorrow morning for your kind review. 

    “ The individual invitees and the Banks re-iterate their willingness and readiness to co-operate with your good selves in your important work. 

    “ We respectfully thank you very much for your attention. Please direct all further enquiries on this matter to our law firm.”

  • Nigerians should invest more in governance, says Lemo, others

    Nigerians should invest more in governance, says Lemo, others

    Nigerians must invest more in governance by asking questions and participating fully in legislations before they are passed into laws, former deputy governor of Central Bank of Nigeria (CBN), Tunde Lemo, has stated.

    Lemo gave the advice at a national workshop by the Yaba College of Technology Alumni Association to mark the 70th anniversary of the institution in Lagos.

    The nominee for chairmanship of board Federal Road Maintenance Agency (FERMA) was the keynote speaker and chairman panel of discussants at the workshop with the theme ‘Business financing in a growing economy.’

    He said many laws had been passed to regulate Small and Medium Enterprises (SMEs) and other businesses without the inputs or knowledge of players and stakeholders in the sectors.

    Lemo said condemning laws after they have been passed is undesirable.

    “Before these laws came into being, the National Assembly, I’m sure, published the proceedings, even calling on people to send their inputs. But as usual, people remained complacent until the act became law,” he pointed out.

    Speaking on Financing SMEs: Impact on job creation and economic growth, one of the discussants, Abdul Waheed Muhammed, who stood in for the Managing Director, Bank of Industries, said SMEs are recognised as drivers of economic growth.

    Muhammed said the bank has been helping SMEs grow their businesses through loan supports and expert advices.

    He said BOI loan support to SMEs sub-sector starts from N5 million.

    MD of Jackal Ventures Group, Osiniyi Osibemekun, advised young entrepreneurs to discover and market their talents while remaining focused.

    According to him, most banks are not ready to give loans to upstarts with too many stringent requirements.

    President, Yaba College of Technology Alumni Association, Pastor Femi Martins, said the aim of the workshop was to set agenda for some issues troubling the nation.

    He pointed out that getting good jobs after paying so much to acquire certificates has also remained common, saying entrepreneurs need mentorship to survive.

  • Lemo, clerics seek prayers to end recession

    Lemo, clerics seek prayers to end recession

    A former deputy governor of the Central Bank of Nigeria (CBN), Mr Tunde Lemo, has urged Nigerians to see the recession as a learning point and a time to be virtuous.
    The renowned banker said this was the only way the nation could set on a good path after the recession.
    He said the nation should not bemoan the current situation or lose hope but see the economic difficulty as a cycle that would go away.
    Lemo, who spoke on Sunday evening in Lagos after the Christmas Carol and Orchestra of the Apostolic Faith Church at Anthony Village in Lagos, noted that recession was like an event that would soon pass by.
    The banker advised that all hands should be on deck to prepare for the next round of prosperity and boom. This, he said, could be achieved through learning new skills that would be beneficial after the recession.
    Lemo said: “We should roll up our sleeves and get ready for another round of recovery.”
    The mother of Vice-President Yemi Osinbajo, Mama Olubisi Osinbajo, said she had been praying for the country and for the successes of her children in power.
    The octogenarian urged Nigerians to do same and save the nation from the difficulty.
    The District Superintendent for West and Central Africa of Apostolic Faith, Rev Adebayo Adeniran, said God would heal the land, if Nigerians turned from what he called their wicked ways.
    Quoting the Bible, the cleric noted that righteousness exults a nation.
    He said: “God has an agenda for Nigeria. So, we should pray to Him to help us and support our leaders who walk in righteousness and against corruption and bringing us to path of rectitude.
    “We cannot continue in our old ways and say grace should abide. We speak against corruption, not because we hate the corrupt but because we know that God can make the corrupt turn towards Him and seek His forgiveness.
    “When corruption leaves this country, renewal will come and the glory of God will return.
    “Let us not lose hope because we have not yet crossed the boundary of redemption. But with prayers, we shall be free of all those who hold us against God and our renewal as a nation.”

  • Paths to economic recovery, greatness, by Lemo

    Former Deputy Governor of Central Bank of Nigeria (CBN) TundeLemo has identified four major steps the nation must take to recover from the ongoing recession and become an economic giant.

    Lemo spoke last week as guest lecturer at the 61st annual national convention lecture of the Foursquare Gospel Church in Nigeria.

    The theme of the lecture was The Nigerian economy: The past, the present and the future.  

    He said Nigeria must embrace restructuring, especially in the area of fiscal consolidation to harness its potentials and natural endowments.

    Lemo argued: “We cannot continue to be in denial and missed opportunities.

    “As events of recent times exposed our underlying economic weaknesses, the huge concentration risk the economy faces and the urgent need to implement meaningful transformational policies, macroeconomics restructuring is a no-brainer.”

    He also said the nation must diversify and take of its comparative advantages in solid mineral and agricultural sectors for increased productivity.

    Nigerians, he added, must be more patriotic by embracing local products, especially with basic things such as school uniforms, textiles, shoes and foods.

    This, he said, will not only reduce importation but also increase foreign exchange earning while also supporting development of local industries.

    The former CBN deputy governor called on government to invest massively in infrastructure.

    According to him: “Government should look beyond the annual budget for funding infrastructure.

    “We should explore public-private sector partnership especially for road and urban housing infrastructure.”

    He added: “We must rebuild the public school system and reintroduce technical education.

    “No nation grows faster than its manpower training institution. We also need to build strong institutions and enhance training institutions.”

    Chairman of the occasion, Dr Christopher Kolade, said Nigerians must embrace godly principles and values to overcome the current economic woes.

    According to him: “Management of national economy must respond to the rules, principles and values which he has established for it to grow.

    “If we contribute the best of our productivity as individuals, the economy will sparkle again.”

    General Overseer of Foursquare Gospel Church, Rev Dr Felix Meduoye, said: “If we are to survive, individually and collectively, we must all be committed to the pursuit and enthronement of patriotism, probity, integrity, accountability and transparency.”

  • Lemo to bank workers: be ethical, prudent

    Lemo to bank workers: be ethical, prudent

    Former Central Bank of Nigeria (CBN) Deputy Governor, Operations, Mr Tunde Lemo has urged bankers to be ethical in their conduct.

    In an interview with reporters during a send off dinner for him at the CBN Lagos Office, Lemo advised banks not to maximise profit at the detriment of their customers, adding that banking should be based on trust.

    “When you are a banker, it is a position of trust and the public expects so much from you. It is not just for you to be honest, you must be seen to be honest and you must always bear in mind that the interest of the customers and the people you serve is important, much more important than the profit because it is only when they are there, that your bank can be stronger.

    “But if you conduct banking in such a way that you maximise profit to the detriment of customers, when their businesses go down, it will only take time before your own business will go down,” he said.

    The former CBN chief called on banks to support their customers and the business community so that they can grow their businesses because it is only when such businesses grow, that banks could also grow. He insisted that the apex bank has played a key role in the development of the economy, citing the recent privatisation of the power assets as an example.

    According to him, the banks were able to contribute to the power sector reforms as a result of the reforms in the sector. “For the first time in the history of Nigeria, we saw Nigerian banks playing a key role in a major reform of that nature. It was because of the central bank policy that ensured that the banks are not only big, but strong,” he added.

    Lemo explained that with the anticipated rebasing of the country’s Gross Domestic Product (GDP), it would become the biggest economy in Africa.

    The Group Managing Director/Chief Executive Officer, Zenith Bank, Mr. Godwin Emefiele; and his counterpart at Union Bank, Mr. Emeka Emuwa, all commended Lemo for his contribution to the growth of the banking industry.

    Lemo had during his 10-year stay at the CBN served three successive governors namely, Joseph Sanusi, Charles Soludo and Lamido Sanusi who is due for retirement by June this year.

     

  • CBN introduces new payment system

    CBN introduces new payment system

    The Central Bank of Nigeria (CBN) has introduced a new payment system called Real-Time Gross settlement (RTGS) system as part of efforts to implement Payment System Vision (PSV) 2020 strategy.

    CBN’s Deputy Governor (Operations), Mr. Tunde Lemo, made this known while briefing journalists on Thursday in Abuja.

    The News Agency of Nigeria reports that Lemo, who is expected to proceed on retirement on January 11, said that CBN put live operations to the new system on December 16, 2013.

    He said the new RTGS was integrated with Scrip less Security Settlement System (SSSS) and would replace the old payment system in use since seven years ago.

    “The SSSS, on the other hand, is a new initiative to issue, manage and settle government and other money market securities processed as electronic records in a Central Securities Depository (CSD) system.”

    He explained that the RTGS was an inter bank payment infrastructure that was facilitating the real time settlement of electronic funds transfers on gross and irrevocable basis.

    Lemo said that RTGS was built on swift standards to allow for safer, easier and faster inter connectivity with other payment system infrastructure both locally and internationally.

    “It serves as the nucleus of the national payment system, as all payments finally settle in central bank money through settlement accounts maintained for designated financial institutions.”

    On SSSS, he said it would facilitate the electronic management of the entire life cycle of securities transactions.

    He said the system would manage the primary and secondary market securities and facilitate efficient open market operations.

     

  • How savings from currency overhaul’ll be spent, by CBN

    How savings from currency overhaul’ll be spent, by CBN

    Savings from the planned currency overhaul will be used by the government in creating jobs and strengthening key infrastructure in the country, the Central Bank of Nigeria (CBN) has said.

    CBN Deputy Governor, Operations, Tunde Lemo, who disclosed this in Lagos, noted that cost of currency management has been on the rise, with over N125 billion spent in the past three years printing and minting currency.

    Lemo was responding to criticisms against the apex bank currency restructuring programme, which will see N5,000 banknote introduced into the economy early 2013. The currency will become the highest value bill in circulation even as other changes will see the lower denomination bills of N5, N10 and N20 converted into coins. This will increase the country’s currency structure to 12 from 11, divided equally between coins and notes.

    He explained that the currency overhaul will save the country a lot of funds, as the new banknote is cheaper, easier to carry and manage. It will also lead to drastic reduction in cost of banking operations. Such funds, he said, will be used to create jobs and boost infrastructure.

    However, he said that banks do not have the power to compel their customers to accept the N5, 000 banknote if and where it is not convenient for such customers. Such customers, he advised, can ask for alternative banknotes where they think the N5, 000 is not convenient and banks should oblige such requests.

    ”Banks cannot compel bank customers to take the N5, 000 banknote. Bank customers can decide to accept or reject the proposed banknotes where they are not convenient. If you do not need it, you can as well ask that alternative banknotes be provided,” he said.

    Lemo said there is no link between inflation and higher currency denominations, adding the value of the currency will remain the same. He argued that in  many economies in which large-denomination notes and coins circulate actually have some of the lowest inflation rates often combined with impressive records of growth citing the United States,  Japan, United Kingdom and the Euro area are some of the examples. He said that Japan has a single banknote of 10,000 Yen (Y10, 000) and that inflation in the country is one of the lowest in the world.

    He said there is no contradiction between the proposed banknotes and the cashless policy of the apex bank, adding that the objective of cashless policy is to drive efficiency in the management of banking transactions.

    According to him, cashless simply means that less cash will be used and not absence of cash. He said that introducing the N5, 000 banknote will create efficiency and drastically reduce cost of printing banknotes in the country.

    He said that Nigerians do not hate coins as most people have insinuated, rather, it was the fact that coins used in the past could hardly buy anything. He said that the CBN is yet to decide on which company will print the N5, 000 banknote, adding that the bidding process for the contract will be competitive.

    He expressed surprise at the response that greeted the proposed banknote, adding that perhaps, it was a transferred aggression because of the hardship in the country. Lemo said economic hardship is not peculiar to Nigeria alone, adding that other countries of the world are also going through severe economic hardship.

    Justifying the currency overhaul, the Lemo said that every currency gets reviewed once in a while and that Nigeria is not an exception.

    “Currency review is something that we must do. So as a monetary authority it is a responsibility enshrined in the CBN Act 2007,” he said.

  • Banknotes, coins ‘ll always be relevant, says Lemo

    Although e-payment is becoming more popular in Africa, banknotes and coins will always be relevant and useful, Central Bank of Nigeria (CBN) Deputy Governor, Tunde Lemo has said.

    Speaking yesterday at the Association of African Banknotes and Security Documents Printers (AABSDP) conference in Lagos, he said the cash-less policy of the apex bank is on course. He said banknotes and coins will always be useful in consummating transactions.

    Lemo said that the proposed N5, 000 note will reduce cost of banking operations, adding that Africa must embrace change and new technologies in printing of bank notes and minting of coins to keep counterfeiters on check.

    “Yes, electronic banking is where to go because of the increase in volume of commercial activities in the last 10 years, but then cash will not go away. While others will be growing, the volume of cash in the system will remain the same. So when they castigate us that we are speaking from both sides of the mouth by talking cash-less and introducing a higher denomination, our response is that we must be more efficient with the use of cash because cash will not go away. So we are attacking efficiency from both ends and the two are not contradictory, rather they are complementary,” he said.

    Lemo disclosed said that the restructuring of Nigeria’s currency is based on CBN’s constitutional roles, which allow it to print new notes from time to time.
    He said that the apex bank has assisted in ensuring that counterfeit-proof notes are printed and circulated within the country.

    According to him, given the apex bank’s record in the market and the things it had done over the past 20 years, there is need for it to be trusted.
    He said the apex bank is ensuring that features it puts in the currency are so expensive that it will be difficult for counterfeiting to thrive.

    “We believe that the coins are very important. There is no society that operates only on banknotes. People say they can’t carry coins, but the moment they go to other countries, they give them coins and they put them in their pocket. The CBN is charged with the responsibility of issuing and managing the legal tender currency in Nigeria,” he said.

    Besides, he said that global best practice demands that countries restructure their currencies every five to eight years to be ahead of counterfeiters.

    He said that the existing policy actually is that if one must carry high volume of cash, then he must pay the associated charges with the carriage of high volume of cash. Besides, he said that the charges of electronic banking will continue to go down. He said that banks are now reducing cost of electronic banking as they continue to have more transactions along that path.

    “Suppose you need to print maybe N1 million N100 notes, you can actually reduce cost by printing them in N5, 000 and of course the differential is very minimal. That is basically what we are saying. At the high end, the volume of N1000 that we are using today, gives a compelling reason why some of it should be denominated in N5, 000 so as to reduce cost,” he said.

    He said the policy will not cause inflation because the apex bank is not increasing volume of money supply. “We are only redistributing the percentages that will be in different denomination, so it will not increase inflation,” he said.

    “We want Nigerians to carry less cash. We cannot say we don’t want Nigerians to carry cash because people carry cash all over the world and they will continue to carry cash,” he said.