Business, Politics

Stakeholders urge Tinubu to implement Nigeria Agenda 2050

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Some stakeholders have urged President Bola Tinubu to implement the Nigeria Agenda 2050 developed to address economic and social challenges in the country.

Hussaini Abdu, country director, CARE International, said that former President Muhammadu Buhari formulated the Nigeria Agenda 2050 (NA 2050), which is a long-term economic transformation blueprint for Nigeria.

Mr Abdu and other stakeholders spoke during a Leadership and Development Dialogue (LDD), tagged ‘Nigeria Agenda 2050 and the Incoming Administration,’ organised by the African Centre for Leadership, Strategy and Development (Centre LSD), on Thursday in Abuja.

He said that the NA 2050 targets Nigeria becoming an upper middle-income country with an average real GDP growth rate of 7 percent, nominal GDP of $11.7 trillion by 2050, and an end period per capita income of $33, 328 per annum.

“The purpose of this perspective plan is to fully engage all resources to achieve inclusive growth, reduce poverty, achieve social and economic stability.”

Create a sustainable environment that is consistent with global concerns about climate change and generate opportunities for all Nigerians to fully develop their potential,” the country director said.

He believes the country can achieve these laudable objectives by effectively engaging its youthful and vibrant workforce.

“The Nigeria Agenda 2050, therefore, highlights the roadmap for accelerated, sustained and broad-based growth and development, provides frameworks and approaches for reducing unemployment, poverty, inequality, and human deprivation.”

Mr Abdu said that Nigeria has continued to struggle economically because of policy summersault and lack of continuity, as such the Tinubu administration should adopt and implement the NA 2050.

The executive director, Centre LSD, Monday Osasah, said the NA 2050 highlighted challenges bedeviling Nigeria’s development with clear plans for resolving them in order to put the country on the path of sustainable development.

Mr Osasah, represented by the director of leadership, Centre LSD, Umesi Emenike, identified the challenges to include: low, fragile, and non-inclusive economic growth, high population growth rate, pervasive insecurity, limited diversification and transformation of the economy.

Others, according to him, include unconducive business environment and limited external competitiveness, deindustrialization, huge infrastructural deficits, climate change, limited fiscal space and high incidences of poverty, unemployment, and inequality.

The stakeholders, therefore, recommended that the new administration should create the structures, institutions and people to drive the agenda.They added that the pursuit of diversification is imperative to achieving the Nigeria Agenda 2050.

“The new administration should prioritise the welfare and empowerment of citizens.

“The federal government should engage the Nigeria Governors Forum to promote ownership and coordination in the implementation of Nigeria Agenda 2050.

“The new administration should build national awareness around the agenda 2050 with continuous assessment and review.

“The new administration should build elite consensus around the agenda and engage in strategic communication to ensure that the plan is readily available and understood by citizens,” the stakeholders added.

Business

ICAN advises Federal Government on palliatives for low-income earners

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The Institute of Chartered Accountants of Nigeria has advised the Federal Government to implement palliatives for low-income earners.

The institute said this while reacting to the Federal Government’s $800m World Bank loan.

It advised the government on the need to introduce credible palliatives to cushion the impact on the most vulnerable population beyond the civil service in an 11-point action-plan communiqué.

ICAN said the government should rather use savings from the subsidy removal of palliatives.

It stated that,

“The government needs to introduce credible palliatives to cushion the impact on the most vulnerable population beyond the civil service. In this regard, the government should design and implement palliatives for low-income earners especially in cities and towns where the cost of living will rise much higher.

“It should introduce policies that will bring down the cost of transportation and food. Palliatives should be implemented at both the national and sub-national levels. Care should be taken to measure the cost of palliatives to be introduced to avoid re-introducing another form of subsidy.

“This is where chartered accountants are needed. We do not support the borrowing of $800m for palliatives when the savings from the subsidy removal can be used for this purpose, saving the country from further debt and rising debt service costs.”

The chartered accountants added that, for SMEs, a palliative may be to put on hold the recently introduced tax increases, while granting tax rebates and investing in infrastructure.

Business, Politics

Governor Otti promises to revive Abia cocoa processing industry

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Governor Alex Otti’s government says it will resuscitate the state-owned cocoa processing industry to boost the commodity’s production and enhance the state’s economic fortunes.

Deputy Governor Ikechukwu Emetu announced this on Tuesday during a meeting with the State Cocoa Transformation Committee members in Umuahia.

He said Nigeria was the largest exporter of cocoa after Cote D’Ivoire. Hence the Abia government was poised to explore the entire value chain in producing and processing the commodity.

The deputy governor added that the government would provide funding and training for cocoa farmers to adopt improved ways of farming to boost the production of the produce.

“We are determined to make Abia State one of the largest producers of cocoa in Nigeria,” he said.

Mr Emetu said the meeting was to acquaint the farmers with the government’s policy thrust on cocoa production and remind them of the imperatives of cocoa production.

The deputy governor expressed displeasure over leasing Agbozu Cocoa Estate, a government-owned property, in Uzuakoli, Bende LGA.

He directed the permanent secretary of the ministry of agriculture, Okey Ihedioha, to furnish him with the lease agreement for further necessary action.

Mr Ihedioha said that with encouragement and adequate government support, Abia would record improved cocoa production.

John Kalu, the state chairman of the Cocoa Farmers Association, urged the government to subsidise the rates of inputs and distribute improved cocoa seedlings to farmers for mass production and bumper harvest.

The representative of the Cocoa Institute Of Nigeria, Prince Olaniyi, expressed disappointment that the only government-owned cocoa plantation had been leased out.

Business

Donkey dealers demand compensation as NAQS destroys meats

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The Donkey Dealers Association of Nigeria is demanding N1 billion compensation from the Nigeria Customs Service as the agency hands over seized bags of meats to the Nigeria Agricultural Quarantine Service (NAQS).

The NAQS has since destroyed 414 sacks of meat, valued at N200 million, impounded by the customs in Kebbi on May 19.

On June 14, the comptroller of the customs in Kebbi, Ben Oramalugo, handed over the 414 dried meat sacks to the NAQS.

On May 19, customs seized a truckload of dried meat conveyed to Ochanja Market at Onitsha in Anambra, alleging that the meat was about to be exported to China and other countries.

However, the seizures have sparked an uproar. Businesspeople questioned how dried meat cargo seized by customs operatives on the Koko-Zuru highway could be said to be heading overseas.

The traders similarly disclosed that their goods were confiscated because of their inability to raise about N1.5 million demanded by customs operatives on the highway to allow the vehicle conveying the goods passage to Onitsha.

On Tuesday, the association’s national president, Ikechukwu Aniude, described the seizures as unacceptable and blatant destruction of lives and livelihoods.

“We are demanding an immediate compensation of N1 billion to members of our association whose livelihoods have been ruined for engaging in donkey business to find their daily bread,” stated Mr Aniude.

“We also demand a probe of the activities of the NCS command in Kebbi state because this is the only state in Nigeria where donkey meat is being impounded on highways.”

The association leader further stated,

“The reasons being given by the comptroller of the customs command in Kebbi are not tenable because no law forbids eating of donkey meat or dealing in businesses in the donkey value chain.

Seizing our goods and destroying them on flimsy excuses that donkey meat is being exported to China and other countries is the height of man’s inhumanity to man.”

Mr Aniude pleaded with the federal government to discourage those he described as overzealous security operatives from destroying legitimate means of livelihoods of hard-working Nigerian citizens.

The association president stated that members of the association had lost goods valued at about N400 million since March 8 last year, when customs started its relentless campaign of seizing truckloads of dried meat on highways in Kebbi.

Business

CBN removes restrictions on forex, raises daily withdrawal limit to $10,000

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The Central Bank of Nigeria has eased limitations on domiciliary accounts, increasing the daily withdrawal limit to $10,000.

In a statement on Sunday, the apex bank of reeled out additional information to Deposit Money Banks (DMBs) on the operational adjustments to the foreign exchange market.

The development was announced after an extraordinary Bankers’ Committee meeting held to discuss the implementation and implications of the policy changes for the banking public.

“Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer,” the statement partly read.

The CBN claims that the new policies are intended to encourage transparency, liquidity, and price discovery in the foreign exchange market in order to increase FX supply, reduce speculative activity, boost consumer confidence, and guarantee overall market stability.

The apex bank also revealed that regular domiciliary account holders will now have free access to their account balances.

Previously, there was a limit on how much cash Nigerians could remove from their domiciliary accounts. However, the new development will make access to forex more easier for Nigerians.

Business, Lifestyle

Tinubu should have listened to Nigerians before removing petrol subsidy- NLC

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The Nigeria Labour Congress, Ebonyi chapter, says President Bola Tinubu should have listened to the poor masses before the removal of fuel subsidy.

Oguguo Egwu, NLC chair in Ebonyi, said this in an interview on Monday in Abakaliki.

Following Mr Tinubu’s announcing the subsidy removal, NLC and its affiliates declared a nationwide strike scheduled for Wednesday. The strike has now been suspended.

“NLC and all its affiliate members are ready to embark on the strike, and this is a total withdrawal of services nationwide. In Ebonyi, we are ready, and mobilisation of workers has commenced,” said Mr Egwu before the late-night truce the government and labour unions reached.

“We enjoined the general public to support the action because this will lead to the reversal of the old fuel pump price regime.”

The labour leader added,

“The increase has led to the suffering of the masses. Imagine paying N550 per litre of fuel in Ebonyi here. Go back to the status quo and let us have room for negotiation. There is a need to listen to the poor.”

He noted that the federal government could do it “without inflicting wounds on citizens,” stressing Mr Tinubu’s government to “make sure that the people are not suffering.”

Ikechukwu Igwenyi, the chairman of the Academic Staff Union of Universities (ASUU) at Ebonyi State University, pointed out that government policies should serve the interest of citizens.

“Well, there is nothing wrong with removing the subsidy, but there must be a palliative to cushion the effect of the subsidy. You don’t just remove it just like that,” said Mr Igwenyi.

The ASUU leader added, “Do it for the interest of the masses. There is a need to revert to the status quo, and labour unions can go to the round table. The people must understand the subsidy regime before removing it.”

Business

NNPC lacks power to fix price Of Petroleum Products – NLC

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The NLC President, Joe Ajaero has stated that the Nigerian National Petroleum Commission (NNPC) lacks the power to fix price of petroleum products.

The federal government stated last week that there was no provision in the budget 2023 beyond May 29 for subsidy.

However according to Ajaero, the federal government lied as records showed that there was provision for subsidy till the end of June.

The labour leader argued that there was a backlog of about N2.3 trillion, according to NNPC.

Ajaero then stated that NNPC lacked the constitutional power to fix prices in a competitive market, like Nigeria.

Ajaero speaking to Arise TV on Monday, June 5 said;

“Now if he is saying that there is no appropriation for subsidy, then fine and good. We can take it from there and we have to discuss it. No appropriation for subsidy doesn’t mean that the NNPC, a private limited company, will now determine for us the price.

“If they say they have removed the subsidy and it should be subject to market forces, then it shouldn’t be for the NNPC to determine prices. They don’t have such powers and there is no provision that their board, as a limited liability company, ever met and took such a resolution. Such details are not acceptable to the labour movement.”

“By Tuesday night, I held a meeting with Mr. President and his team. There and then, the NNPC said they were going to bring out figures and prices. And on the spot, I told them, if you do that, we’ll fight back. There’s no basis for you to take that decision before discussion. And they went ahead and did that.

“We decided to boycott the meeting, but people still prevailed. We attended the meeting and asked them to return to the status quo to enable us to discuss freely. And up till now, they have not done that. So what are we going there to do?”

Ajaero challenged the government to give Nigerians details of the subsidy they had been paying and those that were paid.

“We had agreed on some alternatives before now. Why are those alternatives not working?” he asked.

When asked why labour was not persuaded by various factual arguments put forward by the federal government and the likely impact the newly constructed Dangote refinery would have on the industry, Ajaero replied that market forces will ensure monopoly in the oil sector.

He said,

“How can there be market forces if Dangote is the only person producing? Are we not repeating a private sector monopoly?

“Why is the Port Harcourt refinery not working? Why is the Warri refinery not working? Why is the Kaduna refinery not working? Unless there are other players in the sector, we can’t be talking of market forces. We can’t be talking of competition in the sector. We can’t have a single market participant in the sector and we are talking of market forces.

“It doesn’t go that way. Between now and December, if care is not taken, if it is only Dangote that is producing, a litre of oil will be selling for over N1,000. So the argument doesn’t make sense to us.”

Business, Lifestyle

NLC calls for probe into fuel subsidy as it holds emergency executive meeting following fuel price hike

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The Nigeria Labour Congress (NLC) has called for a probe into the fuel subsidy program in Nigeria.

The President of the NLC, Joe Ajaero, made the call to journalists on Friday, June 2 shortly before the commencement of an emergency meeting of NLC National Executive Council (NEC) in Abuja.

Ajaero criticised the ‘unilateral decision’ reached by President Bola Tinubu on the removal of fuel subsidy without consulting the Nigerian people.

He reiterated that the decision is not in the favour of the people while calling for a probe into the subsidy regime alleging huge corruption in the program.

After President Tinubu had announced the end of subsidy upon his assumption of office in May 29, in less than 24 hours petroleum marketers shut down their filling stations and adjusted their pump price.

The Nigeria National Petroleum Company limited, also announced a new template of pricing that saw the pump price of Petroleum Motor Spirit, PMS, jumped up to N557.

Ajaero on Friday, said the NEC meeting was called to interrogate the ‘illegal announcement’ of over N500 pump price by the NNPCL and that the NEC will give directive on the next action after the meeting.

He said that the organized labour has asked the government to withdraw the figure, contending that about 50 per cent of the states have not been paying the N30,000 minimum wage.

“At the meeting with the Federal Government, they were not only provocative, we saw the contempt they hold Nigerians, they said they will give N5,000 to 50 million poor Nigerians.”

Business

Petrol now N600 in Calabar amid subsidy removal, NNPC template

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The price of petrol has soared in Calabar, Cross River, since the “unfortunate” pronouncement by President Bola Tinubu to end the subsidy regime.

Petrol is being dispensed at N400 and N600 per litre, depending on the filling station.

Only at the NNPC mega station is petrol sold at N194 per litre.

Even with the increment, many filling stations are not dispensing petrol.

A few other stations selling fuel had long queues.

In Calabar South, Murtala Mohammed Highway, Marian, Atimbo and Etta Agbor, no filling station was open for business at the time of the report.

Asked why they were not dispensing fuel, a station manager, who did not want to be named, said he was waiting for a directive from his superiors.

Business, Lifestyle

Subsidy Removal: Fuel now N635 per litre in Anambra

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Barely 24 hours after the announcement of the removal of fuel subsidy by President Bola Tinubu, the price of petrol increased by 200 per cent in Awka, Anambra’s capital.

Mr Tinubu, the newly sworn-in president, while delivering his inaugural speech, said the fuel subsidy was no longer sustainable.

The correspondent who monitored the situation observed that most filling stations in the state capital were closed while the few open ones sell between N620 and N635 per litre.

Long queues have also returned in most filling stations owned by independent marketers while the major marketers were closed.Damian Okeke-Ogene, the national vice president, Ohanaeze Ndigbo Worldwide, expressed dismay at the development, noting that it would worsen the masses’ plights.

Mr Okeke-Ogene said the benefit of the subsidy removal remained tiny to the public’s understanding, noting that its possibility and benefit to the masses was not still unclear.

“We heard there are lots of fraud being perpetrated in the oil subsidy, but the effort of its removal by the past administration under President Goodluck Jonathan was opposed by the opposition party of All Progressives Congress (APC) then.

“President Buhari’s government did not remove the subsidy; I wonder about the rush by Tinubu. The new president should have necessary plans in place to cushion any hardship as a result of this action,” he said.

Mr Okeke-Ogene said after the pronouncement, filling stations stopped dispensing the product, and now the price had tripled.

Mr Fabian Chima, a trader, described the pronouncement as the worst mistake by the new president.

He said Mr Tinubu should have learnt from the experience of the naira redesign, which made life unbearable for many Nigerians.”

How will the masses survive with the increase in the pump price of fuel occasioned by the subsidy removal?” he queried.

Ugochukwu Okeke, a private fuel station operator, said they hoped the new government would provide a friendly business environment for them to ensure that petroleum products would come to them at a reasonable cost to avoid hiking the price.

Mr Okeke said the dealers would always wish to contribute their part in providing a happy state for the people, knowing that the product was a social service but not to strangle their own business.

Business, World News

Adidas to sell off $1.3 Billion worth of remaining Kanye West’s Yeezy left over

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Adidas is set to start selling off $1.3 bILLION-worth of remaining Kanye West’s Yeezy left over after cutting business ties with the rapper following his antisemitic tirade last year.

The German athletic apparel and footwear corporation will also donate a portion of its upcoming profits from its Yeezy products to the Anti-Defamation League and other charities ‘working to combat discrimination and hate, including racism and antisemitism.’

TMZ is reporting the company is expected to start selling off the remainder of its Yeezy sneakers and other inventory items within days, which will mark the first time consumers can buy Yeezy products since October 25, when Adidas broke off business ties with the rapper and entrepreneur.

The controversy behind the business fall out for West began when he and some of his models wore a shirt emblazoned with the phrase ‘White Lives Matter’ on its back for his Yeezy Paris Fashion Week show on October 3.

The Southern Poverty Law Center says the phrase is one that was adopted by neo-Nazi and white supremacist groups in response to the Black Lives Matter movement.

The rapper later took to Twitter to use antisemitic rhetoric in his posts and in interviews.

One of the most infamous of his posts was when he appeared to threaten Jewish people in a tweet that came shortly after his Instagram account was restricted for content viewed by some users as antisemitic.

‘I’m a bit sleepy tonight but when I wake up I’m going death con 3 On JEWISH PEOPLE,’ he began in the controversial post on October 8, 2022.

‘The funny thing is I actually can’t be Anti Semitic because black people are actually Jew also You guys have toyed with me and tried to black ball anyone whoever opposes your agenda,’ he wrote, in one of his first tweets in two years.

Business

CBN directs banks to close bank accounts without BVN within 30 days

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Banks and other financial institutions have been given a 30-day ultimatum by the Central Bank of Nigeria to close accounts without Bank Verification (BVN).

Financial institutions have been directed to link customer’s BVN to related accounts/wallets (except Tier 1).

This requires using the customer’s BVN generated after his/her enrollment to link accounts/wallets to which he or she is a signatory, after validation.

Data from the Nigeria Inter-Bank Settlement System (NIBSS) showed that 57.39 million customers’ accounts have been linked to their BVNs as at April 8.

The directive was given following demand for effectiveness of Know- Your-Customer (KYC) and Customer’s-Due-Diligence principles, and promotion of more safe, reliable and efficient banking and payment systems.

It is also expected that it would address increasing incidence of frauds and to enhance public confidence in the banking industry and provide a guide for BVN operations and watch-list activities carried out by financial institutions in Nigeria.

The statement added;

“No new account/wallet shall be allowed to operate without BVN (except inflows), however, any account/wallet without BVN shall be closed within 30 days.

“This delinking is for corporate or joint accounts and for activities not associated with breaches. Returns on delinked accounts/wallets (except Tier 1) shall be rendered to the Director, Payments System Management Department on a monthly basis.

“Where there is no linked account, a nil report should be submitted while fraud management is a process aimed at using BVN to deter, prevent, detect and mitigate the risks of fraud in the banking industry.”

A watch-listed individual is barred from entering into new relationship with any bank.

The apex bank said that in a situation that a bank chooses to continue business relationship with an account holder on the watch- list, an account holder shall be prohibited from e-channels, issuance of third-party cheques, shall not provide reference to another customer, shall not be allowed to access credit facility or guarantee credit facilities.Also, individuals shall remain on the watch list for up to 10 years and penalties that applied to such shall apply to their accounts.

The statement added;

“Once a Watch-Listed BVN has served its term on the Watch-List, the Nigerian Interbank Settlement System (NIBSS) shall automatically delist the BVN and notify the stakeholders. Where a bank realised that an individual was placed on the watch-list in error, the bank shall apply in writing, with supporting documents to the Director, Risk Management Department of the CBN, for approval to delist.”

The supporting documents shall be duly authorised by the MD/CEO and the Chief Audit Executive of the bank. Upon approval from CBN, the bank shall forward the approval to NIBSS for delisting. Only the institution that placed an individual on the watch-list can request for such delisting.

The new framework added that it is the responsibility of the CBN to conduct oversight on BVN operations and systems, monitor other stakeholders to ensure compliance, issue circulars to regulated institutions on the operations of the Watch-List, review framework for the operations of the Watch-List, as the need arises and apply appropriate sanctions for non-compliance with the Regulatory Framework.

The NIBSS is expected to collaborate with other stakeholders to develop and review the Standard Operating Guidelines of the BVN, initiate review of Guidelines, as the need arises, subject to the approval of the CBN, ensure seamless operations of the BVN system, maintain the BVN database, ensure adequate security of the BVN information; an maintain an on-line real-time Watch-list Portal.

Business, Lifestyle

Petrol subsidy is pushing Nigeria to bankruptcy – Sanusi warns

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Former Emir of Kano, Sanusi Lamido Sanusi has warned against petrol subsidy which he said is having a negative impact on the nation’s economy.

Speaking at a book presentation in Abuja on Tuesday, May 9, Sanusi said it amounts to “stupidity” for the Federal Government to continue subsidy payments when it is clear that it is pushing the nation into ”bankruptcy.”

The former Governor of Central Bank of Nigeria who called on the incoming government of Asiwaju Bola Tinubu to stop the policy, added that those in support of subsidy must realise that “cheap fuel” is not more beneficial to the poor than education, healthcare and power.

He said;

“In 2011, we tried to explain that it’s bad economics; for every $1 billion Nigeria spends on fuel subsidy, it is $1 billion out of education, $1 billion out of healthcare, $1 billion out of power, $1billion out of infrastructure.

“What you (people in support of subsidy) are saying is that for the poor people in this nation, cheap fuel is more important than education, more important than healthcare, more important than power, etc. If you do that for 30, 40 years, what kind of country are you going to have? Which is what we have had.

“As subsidy is, you’ll say if the price is X, we’ll pay 20 percent of it. That’s a subsidy. You will never pay more than X. For a product, whose price I do not control, it doesn’t matter whether the oil price is $200 or $150 a barrel, the Nigerian government has an unlimited pocket, and it will fund the difference.

“The exchange rate can move from N150 to N500 and the Nigerian government will fund it (subsidy). It’s stupidity. You’re heading to bankruptcy. We are walking into bankruptcy with our eyes open.

“We can’t ignore that, and therefore, if I have a new government on May 29 that tells me, ‘Oh, I’m going to continue paying this subsidy for the next three years,’ I’m going to say you’re not serious.

“I’m going to just close my eyes and get ready for the next election in 2027 because we’re going to be here in 2027 talking about the same things.

“People say phase it, but what happens if you start phasing and a year from now you’ve had a massive devaluation? ”

Business, Politics

Buhari regime and CBN are responsible for passport scarcity- NIS

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The Nigeria Immigration Service (NIS) has blamed the scarcity of passport booklets on President Muhammadu Buhari’s regime and the Central Bank of Nigeria’s policy on forex.

The NIS comptroller-general, Idris Jere, disclosed this at a public hearing organised by an ad hoc committee of the House of Representatives in Abuja.

“Foreign exchange regulation policy of the government and CBN’s refusal to grant access to forex for importation of the passport booklets. We generate forex from sale of passport but we do not have access to buy the same booklet and that is a challenge for NIS,” explained the NIS chief.

He added;

“The factors responsible for scarcity of passport include the inability to set up passport-producing factory in Nigeria as its production is done abroad. The major seven components used for producing passports are sold in international market and the assemblage and production are done in Malaysia.”

Mr Jere explained that Irris Smart Technology Ltd, the foreign company responsible for producing the Nigerian passport, had done well given the prevailing circumstances, noting that the presidential directive to commence the production of passports locally by the Nigerian Security Printing and Minting (NSPM) was a welcome development.

He, however, recommended that a proper exit plan be implemented for a smooth handover from the foreign firm to prevent any breach of contract and production process.

Irris Smart managing director Yinker Fisher said before the advent of the e-passport system, the Nigerian passport was marred with embarrassing irregularities and inconsistency under the watch of NSPM.

According to him, due to a lack of capacity, NSPM outsourced the process to three companies, leading to many irregularities, including passport colour and numbers.

Business

CBN authorises foreign banks to give loans in dollar

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The Central Bank of Nigeria on Monday, May 8, authorized foreign banks in the country to work with their parent companies in availing and syndicating foreign currency-denominated loans (dollar loans) to Nigerian companies.

The apex bank said the policy aligns with its mandate to promote financial system stability.

In the Guidelines for the Regulation of Representative Offices of Foreign Banks in Nigeria, signed by CBN’s Director of Financial Policy and Regulation Department, Muhammad Musa, it was stated that a bank licensed under any foreign law, whose registered head office is outside Nigeria, or any financial institution licensed under foreign law, whose primary business includes the receipt of deposits, granting of loans and/or provision of current and savings accounts, are covered by the guidelines.

This include foreign-owned operating bank/financial holding company that is foreign-based, that owns controlling interest in one or more banks or institutions whose primary business includes the receipt of deposits, granting of loans and provision of current and savings accounts.

The guidelines are backed by Sections 6(1) and 8 (1) of the Banks and Other Financial Institutions Act 2020 (BOFIA) respectively which states that “no foreign bank shall operate in Nigeria without prior approval of the CBN”.

The banks are also authorized to market the products and services of its foreign parent or an affiliate of the foreign parent licensed and domiciled outside Nigeria.

They can also carry out research activities in Nigeria on behalf of the foreign parent and also serve as a liaison between the foreign parent and local banks, private institutions within Nigeria and other customers of the foreign parent based in Nigeria.

They are also authorized to connect banks and other financial institutions to their parent firm, and assist exporters in Nigeria with information related to the laws and markets of target countries in which the foreign parent or any of the Group’s affiliates has a subsidiary.

Part of the responsibilities includes collating and distributing economic and financial information or country reports to its foreign parents for use by their customers and assisting their customers who desire to invest in Nigeria or do business with Nigerian companies subject to the extant Data Protection Regulations.

They are also authorised to connect exporters with potential customers in jurisdictions where the parent company operates; and assist Nigerian exporters with finding new markets through its international offices.

The CBN added;

“Representative offices are permitted to record revenue, in so far as such revenue does not relate to non-permissible activities as set out in section 3.2 below and emanates from intra-group services rendered to the parent company with such revenue taxed in accordance with transfer-pricing regulations. Revenue in this provision is limited to line items such as staff costs and business premises leasing fees.”

The banks are not allowed to provide services designated in Nigeria as banking business and provide any commercial or trading activity that may lead to the issuance of invoices for services rendered.

In establishing a representative office in Nigeria, the CBN said a Memorandum of Understanding (MOU) between the CBN and the applicant’s home regulatory supervisor is essential.

“Where such an MOU is non-existent, the CBN will work with the home regulatory agency to establish/execute an MOU as soon as possible,” it said.

“Not later than three months after obtaining the Approval-In-Principle, the promoters of a proposed office shall submit an application for the grant of a final license to the CBN,” the apex bank said.

Business

CBN urged to review banks’ N25 billion capital base

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Adon Ikpefan, has advised the Central Bank of Nigeria (CBN) to review the current N25 billion capital base of banks to enable them to compete favourably with their international counterparts.

Mr Ikpefan, from the Department of Banking and Finance, College of Management and Social Sciences, Covenant University, gave the advice during the 29th inaugural lecture of the institution on Monday in Ota, Ogun.

According to him, reforming the financial sector remains a major tool for banking soundness.

He noted that further reviewing the minimum paid-up capital from the present N25 billion for deposit money banks would significantly enhance their performance and capacity for cross-border businesses.

“Nigerian banks need to be proactive and strategically positioned to be active and not spectators in the emerging world to meet international standards and transform the economy,” Mr Ikpefan explained.

The university teacher added;

“In addition, for Nigerian banks to play their proper role in financial services delivery, locally and internationally, the apex bank needs to improve the framework for operations of banks and non-bank financial intermediaries.”

Mr Ikepefan said there was a need for CBN to emphasise good corporate governance to improve the performance of the Nigerian banking sector significantly and urged the regulatory authorities to embrace policies aimed at controlling inflation and prioritise fostering financial intermediation, adding that fiscal and monetary policies designed to promote output stability and sustainable growth were good for financial intermediation.

He stressed the need for banks’ management and regulatory authorities to create digital banking awareness to promote financial inclusion.

Mr Ikpefan called on the leadership of banks to address mismanagement and fraud, which posed a great threat to the financial health of banks.

Business, Lifestyle, Politics

Aisha Buhari seeks investment in cardiovascular diseases treatment, prevention

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Aisha Buhari, Nigeria’s first lady, has called for adequate investment in the country’s treatment and prevention of cardiovascular diseases.

Mr Buhari made the call on Wednesday when she received the beneficiaries of her free cardiovascular (heart) surgery at the Presidential Villa, Abuja.

The beneficiaries were at the Villa on a thank-you visit to the first lady for her assistance.

The first lady also expressed her desire to continue collaborating with other health sector development partners toward providing the necessary care to children of underprivileged families in Nigeria.

“Through my Aisha Buhari Foundation and the Future Assured, an idea was conceived to partner with other international heart surgeons from Italy to undertake free heart surgeries for Nigerians in need of such services,” Ms Buhari stated.

The first lady added;

“The mission was deliberate to provide medical care to the needy, especially children with critical heart conditions, and today we are able to celebrate with the beneficiaries after a successful operation.”

The chief medical director of the Federal Medical Centre Jabi, Sa’ad Ahmed, commended the first lady for a partnership with the Italian surgeons.

According to Mr Ahmed, the beneficiaries would have found it difficult to cope with the conditions without the intervention of the first lady.

A beneficiary, Murtala Dodo, lauded the first lady for resuscitating his life after battling the disease for a long time.

Ms Buhari had, on January 24, invited a team of cardiac surgeons from Italy to offer free heart surgery for less-privileged children in Nigeria

Business

Petrol producers, others set agenda for President-elect Tinubu

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The Independent Petroleum Producers Group has called on President-elect Bola Tinubu to address the bottlenecks mitigating against industry growth and energy security.

The IPPG chairman, Abdulrazaq Isa, made the call on Monday in Abuja at the sixth edition of the Nigeria International Energy Summit (NIES).

Mr Isa said the administration’s agenda for the industry should be geared toward improving investor confidence through the effective implementation of the Petroleum Industry Act and strengthening regulatory institutions.

He said the incoming administration should arrest the menace of crude theft across the Niger Delta which still lingered in spite of the recent successes recorded by the federal government.

Mr Isa listed others as harnessing the nation’s hydrocarbon asset, particularly gas, to catalyse and rapidly industrialise the economy, building a broader value-creating midstream (gas processing plants) and downstream (refineries) and transforming Nigeria into a product supplier.

He emphasised the need to eliminate industry-wide subsidies for all hydrocarbon and refined products as they remain detrimental to the growth of a vibrant industry.Mr Isa also called for an immediate repositioning of the industry.

“The Nigerian oil and gas industry has a very limited window to get things right and must work toward the rapid exploitation of its vast hydrocarbon assets for the socio-economic transformation and deploying same to guarantee our energy security,” he explained.

“It is instructive to note that this edition of the NIES will be the last of this current administration.”

He added,

“It is on that note and on behalf of the Board of Trustees and the Governing Council of the IPPG I commend President Muhammadu Buhari, for his unwavering commitment to the survival and growth of our industry. Under his leadership, his administration has delivered unprecedented milestones across the entire industry, notably, the enactment PIA in 2021 which has boosted investor confidence after a two-decade lull in activities.”

Also speaking, Omar Farouk, the secretary general of the African Petroleum Producers’ Organisation (APPO), called for enabling environment for African energy security. He listed challenges in the African energy industry as lack of funding, technology and reliance on foreign markets.

Mr Farouk said for seven decades that Africa had been producing petroleum, relying on external finance and foreign technology and to some extent expertise for production.

Mr Farouk said these challenges had been the focus of APPO in the last three years and it had concluded that the future of the industry lied on the hands of Africans.

“For the funding of the oil and gas projects across the continent, we have gone into partnership with the African Export-Import Bank to establish Africa Energy Bank with objective of financing oil and gas projects in the continent,” Mr Farouk explained.

He disclosed that for technology and expertise, the APPO secretariat “has just concluded a tour of institutions of oil and gas training in some of our member countries for centres of excellence in petroleum industry,” to “banish the mindset that our people are too poor to buy energy and empower people to have access to energy.”

Business

Nigeria’s stock market loses N418 billion as shares tumble

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The equities market on Monday opened the week on a negative note, shedding N418 billion due to losses in largely capitalised stocks.

The All-Share Index decreased by 766.56 per cent, representing a decline of 1.48 per cent, to close at 51,127.38 points from 51,893.94.

Similarly, the overall market capitalisation value lost N418 billion to close at N27.850 trillion from N28.267 trillion.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are MTN Nigeria Communications (MTNN), Transcorp Hotels, Africa Prudential, FBN Holdings (FBNH) and Wema Bank.This week, United Capital Plc said it expected “mostly bearish sentiments in the market, supported by the illiquidity of the financial system,” noting that the current “bear trend is approaching a turning point, as the Q1, 2023 earnings season draws nearer.”

It added;

“We anticipate the broad-based return of investors’ risk-on sentiments, which is to be catalysed by declining yields in the fixed-income market.

The current low prices and valuations will allow buy-side investors the opportunity to re-enter the market and take positions in fundamentally sound stocks, thus maximising market returns.”

Also, the market breadth was negative as 18 stocks lost relative to 16 gainers.

Ikeja Hotel recorded the highest price gain of 9.48 per cent to close at N1.27, per share. Transnational Corporation (Transcorp) followed with a gain of 9.47 per cent to close at N1.85 and Consolidated Hallmark Insurance up by 8.77 per cent to close at 62k, per share.

Nigerian Exchange Group rose by 8.16 per cent to close at N26.50, while Jaiz Bank gained 5.68 per cent to close at 98k, per share.

On the other hand, International Energy Insurance led the losers’ chart by 6.98 per cent to close at N1.20, per share. MTN followed with a decline of 6.67 per cent to close at N224, while Transcorp Hotels lost 5.8 per cent to close at N6.50, per share.

Africa Prudential declined 5.45 per cent to close at N5.20, while AIICO Insurance shed 5.08 per cent to close at 56k, per share.

The total volume traded fell by 58.19 per cent to 226.59 million units, valued at N1.57 billion, and exchanged in 4,37 deals.Transactions in the shares of Transcorp topped the activity chart with 107.21million shares valued at N162.83 million.

Fidelity Bank followed with 39.31 million shares worth N206.01 million, while United Bank for Africa (UBA) traded 22.6 million shares valued at N190.36 million.

Zenith Bank traded 20.61 million shares valued at N521.29 million, while FCMB Group transacted 12.61 million shares worth N47.83 million.

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