September 13, 2024

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1 UNICEF seeks support to eradicate NTDs in Nigeria

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4 Weights and Measures: FG commits to curbing shortchanging customers

5 NGO unveils centre to harness digital technology for educational advancement

Metro

FG inaugurates committee on national housing data centre 

By Angela Atabo

The Federal Government has inaugurated a Joint Steering Committee on National Housing Data Centre, to develop and implement a blueprint for ensuring transparency and easy access to housing.

The Minister of Housing and Urban Development, Ahmed Dangiwa,  inaugurated the centre on Tuesday in Abuja.

Dangiwa said that  the centre would be useful for policy and decision making towards affordable housing and the well-being of Nigerians.

He said that the measure was imperative in order to meet the housing needs of Nigerians and unleash the sector’s potential as an enabler of economic growth.

According to him, there are many issues in the sector that need fixing.

“The lack of credible, scientific, and verifiable data on the state of housing in our country stands out as the most pressing and embarrassing.

“This is because, without data, we cannot know the magnitude of the problem we are facing, and the resources we need to allocate.

“This is coupled with the challenge of substandard houses that do not meet the conditions of safety,  security and other parameters as set out by the UN and the World Health Organisation (WHO),’’ he said.

Dangiwa added that there was no industry-accepted data to guide the government, housing agencies, and financial institutions in planning and outlining strategies to fix Nigeria’s housing problems.

“What we have had over the decades are speculations and estimates.

“At the Ministry, we consider this a national emergency for the housing sector and as a government, we can not allow it to continue.

“Under the Renewed Hope Agenda of President Bola Tinubu, for housing and urban development, fixing Nigeria’s housing data problem is a top priority, ” he said.

The minister said it was as a result of the challenges  that they were inaugurating the Joint Steering Committee on National Housing Data.

“The Committee has been established as a strategic partnership among key stakeholders in Nigeria’s housing market.

“The mandate is to develop and implement a blueprint for ensuring transparency and ease of access to housing data in Nigeria.

“It will be essential for policy and decision-making towards affordable housing and the well-being of Nigerians,”he said

Dangiwa said that key deliverables of the committee would be to develop the framework and modalities for setting up the National Housing Data Centre (NHDC).

He said that the committee would  cover technical requirements, specifications, including transactional and legal documentation

“It will also create a framework for data gathering channels from public and private institutions.

“It will design a framework for distributing housing data to institutional and retail investors in the Nigerian financial market, ” he said.

The minister said that the committee would develop a framework for data distribution to all participants in the housing market and establish the framework and timelines for setting up a mortgage exchange.

Mr Kehinde Ogundimu, Managing Director and Chief Executive Officer, Nigeria Mortgage Refinance Company (NMRC), pledged the commitment of the committee to deliver on the mandate.

“We will work together and put forth something that will be credible, reliable, and  that people can use to make informed decisions,” he said.

The News Agency of Nigeria (NAN) reports that membership of the committee includes a representative from Federal Ministry of Housing and Urban Development to serve as the Chairman

Others are representatives from National Population Commission, National Bureau of Statistics, Central Bank of Nigeria, NMRC,  and Federal Mortgage Bank of Nigeria.

Also included are Federal Housing Authority, Family Homes Funds Limited, Mortgage Bankers Association of Nigeria, Housing Development Association of Nigeria, among others.NAN)

Edited by Remi Koleoso/Kadiri Abdulrahman

Economy/Business

Nigerian economy has witnessed growth, stability – CBN

By Kingsley Okoye

The Central Bank of Nigeria (CBN) said in Abuja on Friday that its monetary policies and actions have stimulated growth and stability of the nation’s economy.

CBN Governor, Mr Olayemi Cardoso, said this during an engagement with Senate Committee on Banking, Insurance and other Financial Institutions.

Cardoso said that given the positive indicators, Nigerians were in for better days.

He said: “The spread between official and BDC rates has narrowed significantly from N162.62 in January to N47.22 in June indicating successful price discovery, increased market efficiency and reduced arbitrage opportunities.

“The stock of external reserves increased to 36.89 billion dollars as of July 16, compared with 33.22 billion dollars as at end-Dec 2023, driven largely by receipts from crude oil related taxes and third-party receipts.

“In first quarter 2024, we maintained a current account surplus and saw improvements in our trade balance.

According to him, the nation’s external reserves level as at end of June can finance over 11 months of importation of goods and services or 14 months of goods only.

Cardoso said this was significantly higher than the prescribed international benchmark of 3.0 months, indicating a strong buffer against external shocks.

He said that the banking sector remained robust and diverse, comprising 26 commercial banks, six merchant banks and four non-interest banks.

“Key indicators such as capital adequacy, liquidity, and non-performing loan ratios all showed impressive improvements, underscoring the sector’s growing stability and resilience.

“The equity market has shown impressive performance, with the All-Share Index rising by 33.81 per cent and market capitalisation expanding by 38.33 per cent from Dec 2023 to June 2024, reflecting growing investors’ confidence,” he said.

Cardoso said that while CBN was encouraged by these positive trends, it remained vigilant and committed to implementing policies that support sustainable growth in the financial markets, while maintaining overall economic stability.

He also assured members of the committee that required measures and strategies had been mapped out to confront emerging challenges.

“To combat inflation, we have implemented a comprehensive set of monetary policy measures.

“These include raising the policy rate by 750 basis points to 26.25 per cent, increasing cash reserve ratios, normalising open market operations as our primary liquidity management tool.

“And adopting Inflation Targeting as our new monetary policy framework,” he said.

Cardoso said in the area of banking supervision, CBN had taken decisive actions to ensure the safety, soundness, and resilience of the banking industry.

He said that key measures included intervention in three banks, revocation of Heritage Bank’s license, increasing minimum capital requirements, and enhancing AML/CFT supervision.

“We also introduced new frameworks for Cash Reserve Requirements and cybersecurity and prohibited the use of foreign currency collaterals for local currency loans,” he said.

Cardoso said that CBN was in the process of reviewing micro and macro prudential guidelines to reinforce the resilience of financial institutions to withstand tightened conditions, thereeby creating a secure and attractive investment climate.

“We have signaled our plans to re-capitalise deposit money banks in Nigeria to improve capital inadequacy and their capacity to grow the economy.

“Our ultimate goal is to create a more stable, resilient, and efficient financial system that can better serve the Nigerian economy, while adhering to international best practices,” he said.

Earlier, Chairman of the Committee, Sen. Adetokunbo Abiru, said the purpose of the interaction was to update the committee on efforts, activities, objectives and plans of the CBN with respect to monetary policy. (NAN) (www.nannews.ng)

Edited by Chidinma Agu/Uche Anunne

Economy/Business

CBN mandates BDCs to cap forex profit at 1.5%

By Grace Alegba

The Central Bank of Nigeria (CBN) on Thursday directed Bureau De Change (BDCs) operators to sell forex at a maximum profit margin of 1.5 per cent, aiming to correct market distortions.
The bank, in a circular signed by Aliyu Mahdi, Acting Director, Trade and Exchange Department, CBN, said the directive was to normalise the foreign exchange market through ongoing reforms.

The circular titled: “Sales of Foreign Exchange To BDCS To Meet Retail Market Demand For Eligible Invisible Transactions”, outlined the rationale behind the directive.

The regulator said that persistent distortions in the retail market were contributing to disparities in exchange rates, particularly in the parallel market.

“To address this issue, the CBN has authorised the sale of FX to eligible Bureau De Change (BDCs), to satisfy demands for invisible transactions,” it stated.

Under the directive, each BDC is authorised to purchase 20,000 dollars at a rate of N1,450 per dollar reflecting the lower band of the trading rate observed in the previous session at Nigeria Autonomous Foreign Exchange Market (NAFEM)

“All BDCs are permitted to sell to eligible end-users at a profit margin not exceeding one point five per cent (1.5%) above the CBN purchase rate,” the bank clarified.

The apex bank instructed eligible BDCs to remit Naira payments to specified CBN Naira Deposit Account Numbers and submit payment confirmations alongside required documentation for disbursement at designated CBN branches in Abuja, Awka, Kano and Lagos. (NAN)(www.nannews.ng)

Edited by Olawunmi Ashafa
An Economist, Mr Abba Adaudu
Banking , Business

Economist decries revocation of Heritage Bank by CBN

By Gregory O. Mmaduakolam

An Economist, Mr Abba Adaudu, has decried the revocation of the licence of Heritage Bank by the Central of Nigeria (CBN) due to a breach of banking regulations.

Adaudu, who is also a financial consultant, spoke with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

He said that the revocation of the bank’s licence would have adverse effects as all its customers would flood the bank’s offices nationwide to collect their deposits.

According to him, the revocation of the licence of the bank has multiplier effects on the economy as many staff of the bank will lose their jobs and will again be thrown to the labour market.

Adaudu said that the revocation would have a lot of negative effects on the banking system as many people might be afraid to put their money in the bank.

NAN reports that the CBN on Monday revoked the banking licence of unlisted lender Heritage Bank Plc due to a breach of banking regulations.

According to CBN, the bank has continued to suffer and has no reasonable prospects of recovery; thereby making the revocation of the licence the next necessary step.

The central bank said its action followed a period of engagement with the bank where it prescribed various supervisory steps intended to stem a decline in Heritage’s performance.

Adaudu, however, argued that as the nation was facing economic crisis presently, the revocation would trigger more hardship on the people as the economy, dependents and staff of the bank would suffer.

He advised that CBN would not have revoked the bank but dissolve its board as it did to the Keystone, Union and Polaris banks and takeover the financial institution for proper management.

He listed letters of credit, promissory notes, provision of admirable customer’s service, providing adequate information and providing account statement as some of the services the customers would lose.

“Other services customers will lose are protecting customer deposits, honouring cheques, provision of access to financial services and protecting customer confidentiality,’’ he said.

On the Minimum wage crisis between Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), Adaudu said that Nigerian workers’ salaries were very meagre coupled with the hyperinflation facing the country currently.

He urged the Federal Government to constitute cooperative farming for successful businessmen in the six Geo-political Zones to curtail the current high prices of foods in the country.

According to Adaudu, no amount of money paid to the civil servants will be enough by the Federal / state governments if high rate of inflation is not lessened.

He said forming cooperative farming would assist to cushion the effects of food shortage and high prices of food in the country.

The economist added that empowering successful businessmen in the six geo-political zones would help to address the current food crisis in the country.

Adaudu explained that if this policy was implemented with adequate supervision and security to protect the farmers in these zones, more food and employment opportunities would be created. (NAN)

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Edited by Chijioke Okoronkwo

CBN Governor, Yemi Cardoso
Banking , Business

CBN revokes licence of Heritage Bank

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN), has announced revocation of the licence of Heritage Bank Plc with immediate effect.

This is according to a statement issued by Hakama Sidi-Ali, the Acting Director, Corporate Communications Department of CBN on Monday in Abuja.

Sidi-Ali said that the action was in accordance with the apex bank’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act.

This action became necessary due to the bank’s breach of Section 12 (1) of BOFIA.

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

“This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step,” she said.

According to her, the CBN took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.

“The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

“We wish to assure the public that the Nigerian financial system remains on a solid footing.

“The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,” she said. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

Economy/Business

Expert faults CBN’s interest rate increase

By Femi Ogunshola

Mr Daniel Akeju, an advisor and treasury manager, has faulted the Central Bank of Nigeria’s (CBN) recent increase in the Monetary Policy Rate (MPR) in an attempt to curb inflation and stabilise the economy.

Akeju, a member of the Chartered Institute of Treasury Management (CITM), made his position known while speaking with newsmen in Abuja on Thursday.

The MPR is the interest rate at which the CBN lends to commercial banks.

The News Agency of Nigeria (NAN) recalls that CBN had increased MPR by 400 basis points to 22.75 per cent from 18.75 per cent in February 2024.

It was increased by 200 basis points to 24.75 per cent in March and currently by 150 basis points to 26.75 per cent in May.

Akeju said that the challenges facing Nigeria’s economy required more than a simplistic approach of raising the MPR.

He noted that while controlling inflation was crucial, it must be done in tandem with measures that would address the root causes of economic instability.

He said that a balanced, holistic strategy that would combine supply-side interventions, enhanced security, economic diversification, and social safety nets would be more effective.

This, according to him, is in terms of stabilising prices, improving food availability, reducing terrorism, and alleviating poverty.

“By adopting these comprehensive measures, Nigeria can build a resilient economy that provides prosperity and security for all its citizens. The time for such a transformative approach is now”, he said.

He said that the strategy of having to consistently increase the MPR was counterproductive, as evident in the continuous rise in prices, food scarcity, escalating terrorism, and growing poverty rates.

“The disconnect between the intended outcomes of these monetary policies and the harsh realities faced by Nigerians necessitates a critical reassessment of the CBN’s approach”, he said.

He stated that raising the MPR is typically aimed at controlling inflation by making borrowing more expensive, thereby reducing spending and slowing down price increases.

He however stated that, in Nigeria’s context, the policy had not yielded the desired results.

The reasons, he said include cost-push Inflation, largely driven by supply-side factors, including high costs of production and distribution fuelled by insecurity and infrastructural deficits, limited access to credit

Others include: Imported Inflation, government borrowing among others.

He urged the CBN to focus more on agriculture intervention; enhanced security; industrialisation; monetary and fiscal coordination and targeted social programmes

He added that the persistent hike in MPR has had severe socioeconomic repercussions, such as rising food prices, increased poverty, escalating terrorism, social safety nets among others. (NAN)www.nannews.ng

Edited by Uche Anunne

Economy/Business

How I collected $3m cash for Emefiele – CBN employee

By Adenike Ayodele

A Central Bank of Nigeria (CBN) employee, Mr Monday Osazuwa, on Friday told an Ikeja Special Offences Court how the former apex bank governor, Godwin Emefiele, on different occasions, directed him to collect three million dollars cash in tranches.

Osasuwa, while being led in evidence by the Economic and Financial Crimes Commission (EFCC) counsel, Mr Rotimi Oyedepo (SAN), said he was a dispatch rider in Zenith Bank in 2001 before he joined the CBN in 2014.

Osasuwa said he joined the apex bank as a senior supervisor in 2014.

He said Emefiele was the Managing Director of Zenith Bank Plc while he was working as a dispatch rider in the bank.

The witness said he knew Emefiele, who was his boss, while in Zenith Bank and that he later joined him at the CBN.

The witness said he was later appointed  as a senior supervisor (full time) in recording and filing of documents while working in the CBN governor’s office in Lagos.

“I was still working in the CBN governor’s office while I was appointed as a full staff member and we usually communicated through Whatsapp and email.

“I function as a senior supervisor, recording  and filing with other official roles.
“I recall that in 2020, when he was outside Lagos, he called me that he would give me a number that a man had something I should collect from him and that the man would give me the number of another person.

“When I got to the man’s office, I was given an envelope. I  counted the money and the man said I should give it to my boss,” he said.

The witness further told the court that the first defendant used to collect money by himself  anytime he was in Lagos but anytime the defendant was not around, he would tell him to give the money to the second defendant.

Osazuwa added that Emefiele sent him to MINL Ltd. when he was with Zenith Bank.

“This company is situated at Isolo, the first defendant did send me to collect cheques from the company from Mr Monday and when I collected the cheque from Mr Monday, I would give it back to Emefiele and he would lodge the money into Dumies Oil and Gas.

According to him, Emefiele’s co-defendant, Henry Isioma-Omoile, lived in the residence of the former CBN governor.

He stated that when he collected money for his boss, he would take it to his residence at Iru Close, Ikoyi.

“Whenever I received the money and take it to my boss’s residence, Mr Emefiele would tell me to give it to the second defendant whenever he was not at home.

“I did not keep a record of transactions because the instruction he gave me was that I should collect the money and bring the money to his house.

“The highest amount I collected was one million dollars all in cash and some weeks later, the businessman also called me to collect $850,000, $750,000 and $400,000 cash in tranches.

“I have never been rewarded, paid or given anything because I am doing it out of faithfulness and he knows it but he has never for once said, ‘take this’,” he said.

Under cross-examination by the defence counsel, Mr Abdulakeem Labi-Lawal, the witness confirmed  to the court that he had been working with the defendant since 2002.

According to the witness, Emefiele passed instructions to him through the second defendant and that he had been collecting cheques for Dumies Oil and Gas.

He, however, told the court when he was made to confront the second defendant during investigation but the second  defendant failed to admit it.

“I started collecting cheques for Dumies Oil and Gas when I was in Zenith Bank.

“I cannot calculate the exact year I have been collecting the cheques but it all started when the first defendant was the Managing Director at Zenith Bank and I was working at Zenith Bank,” he said.

The News Agency of Nigeria (NAN) reports that the EFCC on April 8 arraigned Emefiele on 23 counts bordering on abuse of office, accepting gratifications, corrupt demand, receiving property fraudulently obtained and conferring corrupt advantage.

Emefiele’s co-defendant was arraigned on three counts bordering on acceptance of gift by agents.

The defendants, however, pleaded not guilty to the charge.

Earlier, Oshodi had declined the oral application for adjournment moved twice by the defence counsel.

The judge adjourned the case until April 29 for trial and hearing of application for closed-session. (NAN)(www.nannews.ng)

Edited by Chinyere Joel-Nwokeoma

Economy/Business

Bank recapitalisation: Financial expert lists pros, cons

 

By Olawunmi Ashafa

Mr Yemi Odusanya, former Executive Director, Corporate Banking and South, Keystone Bank, says the capital raise by the Central Bank of Nigeria (CBN) for the banks will further fortify the industry’s financial resilience.

He said it would also reduce the likelihood of failures in the future.

Odusanya said this in an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos.

He said that the move could lead to several potential positive outcomes for the banking industry.

The financial expert explained that higher capital requirements couldenhance the overall stability of the banking sector, making it more resilient to economic shocks.

Odusanya noted that the new capital requirements could improve risk management as banks with higher capital levels are generally better equipped to manage risks and withstand adverse market conditions, which can ultimately benefit depositors and the broader economy.

According to him, a well capitalised banking system can boost investor and consumer confidence, potentially attracting more investment and supporting economic growth.

However, on the potential challenges associated with the new capital requirements, the former director said some banks might face challenges in raising the required capital, particularly smaller institutions, which could lead to consolidation or other strategic responses.

Odusanya further said higher capital requirements could potentially limit the ability of banks to extend credit, particularly to small and medium-sized enterprises (SMEs) and individuals, which could have implications for economic growth and access to finance.

“In order to be able to anticipate what lies ahead as a result of the newly proposed capital raise, we need to review the outcome of the 2004 banking consolidation in Nigeria.

“Recall the 2004 banking consolidation was shaped by several events, including: but not limited to poor performance of banks.

“Many banks in Nigeria were facing financial distress and were unable to meet their obligations. This led to a lack of confidence in the banking sector and a need for a stronger and more stable banking system.

“The global financial landscape was changing, and there was a need for Nigerian banks to be more competitive and meet international standards. This led to a push for consolidation and strengthening of the banking sector.

“The CBN and other regulatory bodies put pressure on banks to merge and consolidate in order to create stronger, more stable institutions,” he added.

While the new capital raise in the Nigerian banking system has the potential to strengthen the sector and improve financial stability, Odusanya suggested that it was essential to carefully monitor its impact on lending activities and broader economic dynamics.

According to him, balancing the need for robust capital levels with the imperative of supporting lending and economic growth will be a critical consideration for policymakers and banking institutions.

On March 28, the CBN announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks.

Commercial banks with international authorisation to increase their capital base to N500 billion and national banks to N200 billion.

Also, commercial banks with national licences must meet a N200 billion threshold, while those with regional authorisation are expected to achieve a N50 billion capital floor.

Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20 billion and N10 billion, respectively. (NAN)

Edited by Folasade Adeniran

CBN Governor, Yemi Cardoso
Banking , Economy/Business

CBN raises bank’s capital requirement from N25bn to N200bn

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN) has increased the minimum capital requirement for Deposit Money Banks (DMBs) with national licences from N25 billion to N200 billion.

The apex bank also increased capital requirement for banks with regional licences from N15 billion to N50 billion and those with international licences from N100 billion to N500 billion.

According to a statement issued by the Acting Director, Corporate Communications Department of the bank, Mrs Hakama Sidi-Ali, the new minimum capital for merchant banks will be N50 billion.

Sidi-Ali also announced that the new requirements for non-interest banks with national and regional authorisations are N20 billion and N10 billion.

The News Agency of Nigeria (NAN) reports that the move is coming days after the Monetary Policy Committee (MPC) meeting.

The CBN Governor, Yemi Cardoso had in the meeting , urged Nigerian banks to expedite action on the recapitalisation of their capital base in order to strengthen the financial system.

Meanwhile, a circular signed by the Director, Financial Policy and Regulation Department, Mr Haruna Mustafa, said that all banks were required to meet the new minimum capital requirement within 24 months commencing from April 1 and terminating on March 31, 2026.

According to Mustafa, the move is to enhance banks’ resilience, solvency, and capacity to continue supporting the growth of the Nigerian economy.

Mustafa urged banks to consider injecting fresh equity capital through private placements, rights issues and offers for subscription to meet the new minimum capital requirements.

He also suggested Mergers and Acquisitions (M&As); and upgrade or downgrade of licence authorisation.

He said that the minimum capital shall comprise paid-up capital and share premium only.

“The new capital requirement shall not be based on the shareholders’ fund.

“Additional Tier 1 (AT1) Capital shall not be eligible for meeting the new requirement.

”Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio (CAR) requirement applicable to their licence authorisation.

“In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position,” Mustafa said.

He said that the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licences submitted after April 1.

“The CBN will continue to process all pending applications for banking licences for which a capital deposit had been made and an Approval-in-Principle (AIP) had been granted.

“However, the promoters of such proposed banks will make up the difference between the capital deposited with the CBN and the new capital requirement not later than March 31, 2026.,” he said

He said that all banks were required to submit an implementation plan, clearly indicating the chosen options for meeting the new capital requirement and various activities involved with their timelines, nor later than April 30.

He said that the CBN would monitor and ensure compliance with the new requirements within the specified time line. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

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