Business

Access Bank warns directors, insiders against trading shares as it suffers setback

No Comments

Access Bank has instructed its management and other members of the company against trading in the shares of the lender as it suffers a setback in release of financials.

According to the Nigerian Exchange Group (NGX) companies are expected to release their audited interim second quarter financial report on or before August 29, 2021.

But Access Bank in a statement to the investing public, published on the NGX on Thursday, said it will be unable to meet the deadline for quoted companies.

The company blamed the strategic business combinations across jurisdictions for the late submission. Recall that Access Bank had made series of acquisitions between late 2020 and the First Half of 2021.

It had acquired Grobank Limited in South Africa, African Banking Corporation in Mozambique, Transnational Bank in Kenya and Cavmont Bank Limited in Zambia.

The integration of these acquisitions into the operation of Access Bank were cited as reason for the failure to meet deadline, while also blaming regulatory approval.

Ripples Nigeria gathered that Access Bank now plans to release its Q2 financial report for 2021 on or before September 10, 2021, “In view of the foregoing, NGX has approved an extension of time to publish the Results.” the lender said.

As the firm delays publication of its financials, Access Bank ordered its board of directors, staff, consultants, relatives, and other related parties to stay away from its shares in the capital market.

The directive is in line with NGX listing rules, which forbids company insiders from trading in the quoted firm’s stock during the period their organisation is collating its financial reports.

This is to ensure insiders don’t take advantage of their knowledge of a company’s private information by selling off or buying shares of their firm – such period is called “closed period”.

“The Bank’s insiders are hereby reminded that the earlier declared closed period in respect of transaction in the Bank’s securities remains in place until 24 hours after the release of the Results.” Access Bank directed.

Business

CBN gets court’s order to block accounts of fintech companies

No Comments

Justice Ahmed Mohammed of the Federal High Court, Abuja, on Tuesday granted the Central Bank of Nigeria (CBN)’s request to block accounts of six fintech companies for the next six months.

The firms are Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.

The judge gave the order while ruling on a motion filed by a former Attorney-General of the Federation and Minister of Justice, Chief Micheal Aondoakaa (SAN), on behalf of the CBN Governor, Godwin Emefiele.

The apex bank approached the court to order the temporary freezing of the companies’ accounts pending the conclusion of an investigation into their financial activities.

The CBN alleged that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited operate in Nigeria without licenses as asset management companies and utilize forex sourced from the Nigerian foreign exchange market for purchasing foreign bonds/shares in contravention of its circular with reference No: TED/FEM/FPC/GEN/01/012 and dated July 01, 2015.

The apex bank told Justice Mohammed that the foreign exchange deals with the defendants contributed to the devaluation of the Naira, hence the need to block their accounts for 180 days.

Business

How COVID-19 caused devaluation of Naira – CBN

No Comments

The Central Bank of Nigeria (CBN) on Monday explained how the COVID-19 pandemic contributed to the recent devaluation of Naira against the United States Dollar.

The Deputy Governor of CBN, Corporate Services, Edward Adamu, who addressed members of the House of Representatives Committee on Finance during an interactive session on 2022-2024 MTEF/FSP organised by the House in Abuja, said the pandemic was responsible for the devaluation of the Nigerian currency and the indirect shortage of foreign exchange supply.

Adamu stressed that the COVID-19 had devastating effects on the nation’s economy.

He said: “There are three major ways that we get forex. These are proceeds from the sale of crude oil, foreign portfolio inflows, and remittances.

“Crude oil sale has not been as high as we all want it to be and obviously in the aftermath of COVID-19, the global economy was grounded to a halt and the use of crude oil also was reduced.

“Sometimes in April last year, we had crude oil selling at negative, which means that people were being paid to store what they bought. Therefore, the avenue for forex inflows was significantly reduced.”

Business

NNPC spent N473bn operating dead refineries —Report

No Comments

The Nigerian National Petroleum Corporation (NNPC) has reported a N473.3 billion operating loss on three idle refineries in Warri, Port Harcourt, and Kaduna in the last six years.

This was revealed in a new report published by SBM Intelligence, a Lagos-based research firm.

According to the report titled operating moribund refineries, the losses occurred between January 1, 2015 to February 2021.

“In that time, only 6.73 per cent of their capacity has been utilised on average. In fact, none of the three refineries has produced a drop of refined petrol since July 2019, racking up over N185bn in losses,” the report stated

Breakdown of the operating losses incurred according to the firm showed that a N56.9 billion operating loss was recorded in 2015 and N5.5 billion in 2016.

The operating loss increased in 2017 to N32.8 billion and again to N126.2 billion in 2018.

In 2019, despite the refineries reporting no fuel, N148.9 billion operating cost was reported.

In 2020 also no fuel but a loss of 101.6 billion was recorded.

So far in the first two months of 2021, the refineries have recorded a cumulative operating loss of N12.2 billion.

“And yet, there’s no sign of the expenditure slowing down. In March, the Federal Executive Council approved the sum of $1.5bn for the rehabilitation of the Port-Harcourt refinery,” the report continues.

“Nigeria must count the cost, not only of spending scarce resources on refineries that had not reached more than 30 per cent capacity in over six years but also of the income foregone from not privatising them,” SBM advised.

Business

Nigerians consume 57m litres of petrol daily in March, increase of 24.1%

No Comments

The Nigerian National Petroleum Corporation (NNPC) has announced an increase in the country’s daily supply of Premium Motor Spirit, also known as petrol, in March.

This was revealed in the company’s March 2021 Monthly Financial and Operations Report (MFOR), which was released on Sunday.

According to NNPC, Nigerians consumed 1.75 billion litres of petrol in March 2021, and more than 1.41 billion litres consumed in February 2021.

This implies a consumption growth of 24.1 percent or 340 million litres and an average daily consumption of 56.5 liters.

NNPC also revealed that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), recorded N234.63 billion revenue from the sale of white products in March 2021.

This represents a 24.7 percent increase from the N188.15 billion sales recorded in February 2021.

The total revenues generated from the sales of white products for the period of March 2020 to March 2021 stood at N2.129 trillion, where petrol contributed about 99.2percent of the total sales with a value of N2.113 trillion.

NNPC also revealed it sold 0.45million litres of Automotive Gas Oil (AGO).

For gas, a total of 222.74 billion cubic feet (bcf) of natural gas was produced in March 2021 translating to an average daily production of 7,183.33 million standard cubic feet per day (mmscfd).

This implies that 63.18 per cent of the average daily gas produced was commercialized while the balance of 36.82 per cent was re-injected, used as upstream fuel gas or flared.

The report also recorded that the Corporation recorded 70 vandalised points across its pipeline network in the period under review, representing 29.63 per cent increase from the 54 points recorded in the previous month.

Business

CBN directs banks to set up teller points for forex

No Comments

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) to set up teller points in designated branches for the sale of Foreign Exchange (forex) to Nigerians.

The directive was sequel to CBN’s decision to discontinue sale of forex to Nigerians through Bureaux de Change operators.

The directive was contained in a letter to the DMBs by Haruna Mustafa, Director, Bank Supervision Department of the apex bank, on Thursday in Abuja.

“Further to the Monetary Policy Committee briefing of July 27, all DMBs are hereby reminded to set up teller points at designated branches across the country.

This is to fulfil legitimate FX requests for Personal Travel Allowance, Business Travel Allowance, tuition fees, medical payments and SMEs transactions, among others.

“In this regard, DMBs are also required to adequately publicise the locations of the designated branches and make necessary arrangements to sell FX to customers in cash and/or electronically in compliance with extant regulations,” he said.

Mustafa further advised DMBs to ensure that no customer was turned back or refused FX provided that documentation and all other requirements are satisfied.

“Equally, undue delays, rationing and/or diversion of FX is strongly discouraged whilst DMBs are required to establish electronic application and alert systems to update customers on status of their FX requests,” he added.

The CBN also pledged to closely monitor banks’ conduct and compliance with the directive in order to ensure an efficient FX market for all legitimate users.

Business, World News

Nike and Adidas Supplier Suspends Production at Vietnam Plant Due to Covid.

No Comments

Taiwan’s Pou Chen Corp, which makes footwear for companies such as Nike and Adidas, suspended operations at its plant in Ho Chi Minh City on Wednesday as Covid-19 curbs hit factories in the country’s business hub.

Vietnam’s health ministry said in a statement that production at Pou Chen’s Pouyuen Vietnam factory would be suspended for 10 days.

State media said 49 infections had been detected at the plant in Ho Chi Minh City, which is at the epicentre of the country’s worst coronavirus outbreak.

The company did not immediately respond to an email seeking comment.

Shares in Pou Chen, the world’s largest manufacturer of branded athletic and casual footwear, closed down 1.3 percent on Wednesday.

After successfully containing the disease for much of the pandemic, Vietnam has faced a more stubborn outbreak since late April.

Record infections and strict curbs on movement have left plants operating below capacity in northern provinces where suppliers for Apple, Samsung Electronics and other global tech firms are located, sources have said.

Pouyuen Vietnam, the largest employer in the city with 56,000 workers, was unable to arrange for its workers to sleep at the site as required by authorities to allow the business to remain open, the health ministry said on Wednesday.

Last year, Pouyuen Vietnam was ordered to suspend its production for two days after failing to meet local social distancing rules.

Earlier this week, state media said authorities also ordered 29 companies in the Tan Thuan Export Processing Zone, an industrial park, to suspend production due to the outbreak.

In the neighbouring Saigon Hi-Tech Park, which houses international companies, more than 700 infections were detected in recent days and authorities ordered companies to shut units with infected workers, state media reported.

Despite the latest outbreak, Vietnam has recorded far lower caseloads that many other countries with 36,605 infections in total and 130 deaths.

Business

CBN bars PSBs from accepting foreign currency, granting loans

No Comments

The Central of Nigeria (CBN) has released the guidelines for the operation of Payment Service Banks (PSBs) in Nigeria.

In a document released by the apex bank on Friday, the PSBs were barred from granting any form of loans, advances, and guarantees (directly or indirectly) to customers.

Also, the PSBs are not expected to accept foreign currency deposits, deal in the foreign exchange market, insurance underwriting or undertake other transactions which are not prescribed by the guidelines.

In addition, the banks were restrained from accepting closed scheme electronic value (e.g. airtime) as a form deposit or payment; establish any subsidiary except as prescribed in the CBN regulation on the scope of Banking and Ancillary Matters, No 3, 2010.

However, the regulator allows the PSBs to grant loans to their employees in line with their established loan policy and subject to the Board approval, accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme and carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria, among others.

The document read: “This framework hereby provides a set of regulations that are targeted at streamlining operations of PSBs, ensuring transparency in their operations as well as ensuring adequate customer protection.

“The framework focuses on corporate governance, risks management of the PSBs and safety of funds to the consumers of the PSBs’ products.

This framework also aims to ensure that sound risk management practices are embedded in the operations of the PSBs.”

The CBN stressed that PSBs were required to comply with relevant extant regulations and prudential guidelines and circulars which were issued periodically.

“They shall use the words ‘Payment Service Bank’ in their names to differentiate them from other banks.

“However, the name of a PSB shall not include any word that links it to its parent company or promoter,’’ it added.

The apex bank also declared that the banks shall operate mostly in the rural areas and unbanked locations targeting financially excluded persons with not less than 25 percent financial service touchpoints in such areas as defined from time to time.

They are to enter into direct partnership with card scheme operators. Such cards shall not be eligible for foreign currency transactions.

“Deploy ATMs in some of these areas; deploy Point of Sale devices, and be at liberty to operate through banking.

“Rollout agent networks with the prior approval of the CBN; use other channels including electronic platforms to reach out to its customers; establish coordinating centres in clusters of outlets to superintend and control activities of the various financial service touchpoints and banking agents,” the document stated.

Business, World News

United Bank For Africa Sues Energy Firm, Polaris Bank Over N2.8 Billion .

No Comments

Federal High Court sitting in Lagos has restrained Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank from tampering, howsoever, with funds standing to their credit up to $6,759,000 (about N2.8 billion) or its equivalent in any currency in 25 banks, the Debt Management Office and Federal Ministry of Finance.

Justice Daniel Osiaigor, who made the interim order of Mareva Injunction, held that it subsists pending the hearing and determination of a motion on notice filed against the duo by the United Bank for Africa (UBA).
The July 2 order followed UBA’s June 29 Application filed and argued by its counsel, Temilolu Adamolekun, who appeared with Gbenga Akinde-Peters, supported by an affidavit sworn to by Anike Isinguzo and Exhibits attached.

Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank are the 1st and 2nd respondents in the suit number FHC/L/CS/714/21.

The 3rd to 26th respondents are Access Bank plc), (Citibank Nigeria Ltd), (Diamond Bank Plc), (Ecobank Nigeria ltd), (Enterprise Bank Ltd.), (Fidelity Bank Plc.),( First Bank of Nigeria Plc.), (First City Monument Bank Plc), (Globus Bank Limited), (Guaranty Trust Bank Plc), (Heritage Bank Plc.), (Jaiz Bank Limited), (Keystone Bank Limited), (Polaris Bank Limited), (Providus Bank Limited), (Stanbic IBTC Bank Nigeria Ltd.), (Standard Chartered Bank Ltd.) (Sterling Bank Plc.), (SunTrust Bank Nigeria Limited). (Titan Trust Bank Limited), (Union Bank Plc), (Unity Bank Plc.). (Wema Bank Plc.) and (Zenith Bank Plc).

The 28th and 29th respondents are the DMO and Finance Ministry.

The court further restrained the 3rd to 26th Respondents or their agents from releasing the sum to the Defendants.

The order also restrained the 1st Defendant from dealing with any of the monies standing to its credit in all of its accounts, or any money in which it has any interest held on its behalf with the 27th to 29th Respondents up to $6,759,000 or its equivalent.

The court restrained the 2nd Defendant from dealing with any of the monies, instruments, Sovereign Debt Notes, Promissory Notes, Treasury Bills or any other instrument in which it has an interest or standing with the 27th, 28th and 29th Respondents, to the tune of $6,759,000 or its equivalent.

It forbade the 27th, 28th and 29th Respondents (CBN, Debt Management Office and the Federal Ministry of Finance) from releasing any monies or funds belonging to the 2nd Defendant or wherein the 2nd Defendant has an interest up the $6,759,000 or its equivalent.

The judge further directed the 3rd to 29th Respondents to disclose on oath the total sum of money or funds in their custody belonging to any of the Defendants.

The plaintiff had averred in its affidavit that the energy firm won the bid to acquire 60 per cent stake/of the shares in the Ibadan and Yola Electricity Distribution Companies following the privatisation exercise of the Power Holding Company of Nigeria (PHCN) Assets sometime in 2013.

It applied to and received a $162,400,000 syndicated loan from the plaintiff, the 2nd Defendant (formerly Skye Bank Plc), Diamond Bank Plc now Access Bank Plc, First City Monument Bank Ltd, Heritage Bank Plc and Keystone Bank Ltd (jointly referred to as the lenders).

The lenders also agreed to the appointment of the 2nd Defendant as the Facility Agent in respect of the facility to, among others, ensuring the repayment of the loan.

The plaintiff accordingly disbursed the sum of $35 million to the 1st Defendant to enable it meet the purpose(s) for which it needed the pooled funds.

The energy firm was unable to conclude the transaction on Yola Electricity Distribution Company (Yola Disco), owing to the insurgency in North-East and it invoked the force majeure protection clause enshrined in the agreements and demanded a refund of the invested sum from the Federal Government.

Sometime in March, 2020, the Federal Government paid the final installments of the refund (recovered sum) to the energy firm and Polaris Bank.

“However, the remaining tranche of the Plaintiff’s share of the said recovered sum has since been withheld by the Defendants, particularly the 2nd Defendant,” UBA told the judge.
The court adjourned till July 13, for hearing of the motion on notice.

Business, World News

Jeff Bezos Resigns As Amazon Boss.

No Comments

Jeff Bezos, American business magnate, who is founder and chief executive officer of one of the world’s largest technological organisations Amazon, steps down from Amazon on Monday – exactly 27 years after he founded it.

However, Bezos will retain a crucial role as the executive chair of the organisation. He will not be a part of the daily management and will spend more time on other projects including his Aerospace company Blue Origin.

Within the period, Bezos was CEO, he developed a series of unusual leadership principles – which some argue are the backbone of his success.

The chief of Amazon Web Services, Andy Jassy, will become the new CEO.

Amazon Web Services, the astoundingly successful cloud computing service, didn’t really have much to do with Amazon’s core business: e-commerce.

But Bezos supported the idea, giving his trusted employee Andy Jassy the freedom, and capital, to go about creating a company within a company.

Bezos views Jassy as an entrepreneur, not just a manager – a key part of why he will take over as Bezos’ successor.

Amazon employees testify to Bezos’ customer obsession. For Bezos, profit was a long-term aspiration. For a company to be successful, it had to have happy customers – at almost any cost.

One of Amazon senior managers, Nadia Shouraboura who started working for Amazon in 2004 told BBC that when she first started, she thought she was going to be immediately fired.

“I made the biggest mistake of my life during our Christmas peak,” she said.

Shouraboura said she had ordered key products onto warehouse shelves that were too high. It would take time and money to get the right products off the shelves.

“I came up with a clever way for us to lose as little money as possible, and sort of fix the problem. But when I talked to Jeff about it he looked at me and said, ‘you’re thinking about this all wrong’.

“You’re thinking how to optimise money here. Fix the problem for customers, and then come back to me in a few weeks and tell me the cost.”

Bezos, however, has many critics. Last month, an article from ProPublica claimed to have seen Bezos’ tax returns alleging he paid no tax in 2007 and 2011. It was a stunning claim about the world’s richest man.

There have been other negative stories about Amazon, its ruthlessness, its claims of monopolistic behaviour that have been a dent on Bezos reputation.

However, many people who worked closely with him have described him as a business visionary – a man with a singular focus who has created a legendary work philosophy and a company worth almost $1.8 trillion.

Always fascinated by space travel, later this month he aims to fly into space on the first crewed flight made by his company Blue Origin.

Business

NDIC to begin payments to depositors of failed banks

No Comments

The Nigeria Deposit Insurance Corporation (NDIC) has commenced verification exercise for depositors of failed 14 banks and 22 Microfinance Banks (MFBs).

This was disclosed in a statement signed by Bashir Nuhu, director, Communication and Public Affairs Department.

According to the NDIC, the verification exercise is geared towards the payment of insured sums to eligible depositors.

Depositors of the affected MFBs whose operating licences were recently revoked by the Central Bank of Nigeria (CBN) have been advised to visit the closed banks’ addresses and be verified by the NDIC’s officials.

They are also to visit the Corporation’s website for the list of the banks and to verify their claims.

NDIC also announced plans to commence payment of liquidation dividends to uninsured depositors, creditors and shareholders of additional 14 banks in liquidation.

The statement noted that while stakeholders of eight closed banks are to receive their first round of liquidation dividend payments, those of the other six are to be paid additional sums due to them as part of their liquidation dividends.

The release listed the banks as City Express Bank, All States Trust Bank, Allied Bank, Commerce Bank, North South Bank, Cooperative and Commerce Bank and Nigeria Merchant Bank. Others are Hilltop MFB, Olomoyoyo MFB, Evo MFB, Ngwegwe MFB, Bekwarra MFB, Argungu MFB and Edet MFB.

The statement further advised eligible stakeholders of the banks to visit the Corporation’s offices nationwide for the verification of their claims or do so on the Corporation’s website.

Business

Nigerian govt says gas flaring drops by 92%

No Comments

The federal government, on Sunday said gas flaring in oil communities has been reduced by 92 percent, and those complaining are only exaggerating.

The Minister of State for Petroleum, Timipre Sylva, made this known while speaking at a forum in Abuja.

According to the Minister, gas flaring is no longer the major problem of our oil communities today.

“Today as we speak on gas flaring, it is so much exaggerated. Gas flaring has been reduced to about eight per cent. We have taken down about 92 per cent of flares.

There has been a lot of monetisation on gas, all the gas that was going into NLNG was previously flared, all the gas going into the power plants was previously flared, and there is a lot of gas also being re-injected into the ground so that we don’t flare it.

“We also use some of the gas to spike the crude oil, so we have found a lot of use for gas which brought flaring down by eight per cent, but people still exaggerate it,” he said.

“Before now in my own community, I saw the flares in the horizon when I stood by the Atlantic, but today it’s no more,” Sylva added

Sylva urged communities in the Niger Delta to tap into various opportunities created by the federal government’s gas utilisation projects and stop complaining about the dangers of gas flaring which had almost been eliminated.

“Gas flaring is no longer a problem in the Niger Delta, eight per cent of gas being flared cannot be the problem.

If I don’t know what to do with my gas that is when I flare, but if I can monetise my gas, why should I burn it when I can make money out of it.

“In fact, it is in my interest not to burn my gas because it now has value. The problem with gas before was that it has no value because nobody was buying it.

“But now, if I can monetise it, I will be guarding it so that I can get some benefits from it,” Mr Sylva emphasised.

Ripples Nigeria had ealier reported that between March 2012 and April 2021, a total of 1.8 billion (MSCF) of natural gas valued at $6.3 billion were flared both onshore and offshore.

This is according to data obtained from Nigeria’s Gas Flare Tracker, an environmental monitoring tool.

The data also showed there are still over 100 active flare sites in ten Nigerian states.

Business

CBN to print currency for Gambia

No Comments

The Central Bank of Nigeria (CBN), says it is ready to help the Central Bank of The Gambia (CBG) to print its legal tender, the Dalasi.

The CBN Governor, Godwin Emefiele agreed to the currency minting proposal from the Governor of the Central Bank of The Gambia, Buah Saidy, who led a delegation on a two-day visit to him on Tuesday.

The CBG had approached CBN for a possible partnership to tackle acute currency shortages among other currency management challenges in the country.

Speaking on the proposal, Emefiele said Nigeria has a lot of capacity in currency printing as she has been minting since the 1960s and “we are willing to assist in printing your currency. We can be extremely competitive in terms of cost.”

Saidy informed the CBN governor that relying on its current printer, De La Rue of London, for its currency needs was expensive and unsustainable.

He explained that it costs the bank about £70,000 to lift printed currencies from Sri Lanka to the Gambia.

Emefiele assured his visitors that the CBN has a competitive advantage to undertake the currency printing for Gambia, adding that the Nigerian Security Printing and Minting has a lot of idle capacity to satisfy the demand of the CBG.

“Our colleagues from Liberia who were there two months ago were fascinated by the facilities we have at the Nigerian Security Printing and Minting,” he said.

On its part, the Nigerian Security Printing and Minting Company Plc said it is ready if both parties come to a deal.

Business

CBN to launch own digital currency by year end

No Comments

The Central Bank of Nigeria (CBN) is planning to launch its own digital currency by the end of 2021, the bank’s IT specialist Rakiya Mohammed said.

Mohammed’s disclosure follows the conclusion of the Bankers Committee meeting on Thursday in Lagos state.

According to her, the apex bank has for over two years been exploring the technology and has made tremendous progress.

“Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace,” she said.

This follows concerted efforts by the CBN to crack down on cryptocurrency operations in Nigeria.

The regulator had in February ordered banks to shut down any accounts linked to crypto transactions.

Mohammed said when eventually operational, the currency would complement cash notes.

The official said another reason the apex bank plans to come up with digital currency is to make remittances travel easier from abroad to Nigeria.

She said that digital currency would accelerate the ability to meet the target, regardless of one’s country of residence.

The specialist also said that CBN would be exploring various technological options and engaging various industry players as well as moving to the next stage of proof of concept to pilot the scheme.

Mohammed said that CBN considered the architecture, accessibility issue and privacy of the currency before going into it.

Other issues discussed at the bankers’ committee meeting include launch of digital cards as well as foreign exchange availability in banks.

Business

Spray naira notes and go to jail – CBN warns Nigerians

No Comments

The Central Bank of Nigeria (CBN), has reiterated its warning that anyone caught spraying Naira notes will be prosecuted.

This directive is a bid by the apex bank to curb the rate at which Nigerians ‘mutilate, deface, squeeze and even spray and sell’ the naira notes during memorable occasions such as weddings and birthday parties.

An Assistant Director at CBN Currency Operations Department, Aladeen Badejo made this known during the commencement of the CBN two-day sensitisation fair held in Abeokuta, Ogun state on Thursday, June 10.

Abuse of the currency attracts a penalty of not less than six months or a fine of not less than N50,000 or both,” Badejo said at the event

Business

National Assembly moves to bar bankers from operating foreign accounts

No Comments

The House of Representatives is considering a bill seeking to bar bank workers and staff of other financial institutions from operating accounts outside the shores of Nigeria.

Their spouses and children may also be mandated to declare their assets when a bill presently at the House becomes law.

This was contained in the ‘Bank Employees, Etc., (Declaration of Assets)(Amendment) Bill 2021’, which has scaled first reading, The Punch reports.

The legislation was titled ‘A Bill for an Act to amend the bank employees, etc., (Declaration of Assets) Act CAP. B1 Laws of the federation of Nigeria 2004 to reflect the prevailing situation in the country’.

Shina Peller, the lawmaker representing Iseyin/Itesiwaju/Kajola/Iwajowa Federal constituency in Oyo State, sponsored the bill and proposed a series of amendments to the Act.

Section 1 of the Act is to be amended by deleting the existing subsections and inserting new ones that read; “(1) Every employee of a bank shall, immediately after assuming duty and, thereafter, at the determination of his (or her) employment, and in the case of a serving banker, within thirty (30) days of the receipt of the Declaration of Assets form from the appropriate authority or at such other intervals as the President or the appropriate authority may specify, make a full disclosure of his (or her) properties, assets and liabilities, and those of his (or her) spouse or unmarried children under the age of 18 years.

(2) For the purpose of this section, a transfer or secondment from one bank to another shall be treated as a new employment.”

The bill is also seeking amendment to Section 5 by inserting new subsections that prohibits foreign accounts for bank workers.

(a) A bank employee shall not maintain or operate a personal bank account in any country outside Nigeria.

“(b) Any complaint that a bank employee has committed a breach of or has not complied with the provisions of this Act shall be made to the Central Bank of Nigeria or the appropriate regulatory body in the case of employees of other Financial Institutions.”

Section 12 of the Act is to be amended by deleting the existing provisions and replacing them with, “(1) The President may direct by an instrument published in the Federal Gazette that the provisions of this Act be applied to other financial institutions. (2) Where the President directs as provided in Subsection 1 of this section, the Act shall apply subject to such textual modification as may be necessary for its execution.”

Business

3,000 defaulters owe AMCON N5tn

No Comments

The Asset Management Corporation of Nigeria (AMCON) has revealed its ongoing process towards the recovery of N5 trillion debt from about 3,000 debtors across the country.

It further disclosed that the matters are currently being litigated at various courts to further aid the recovery process.

This was contained in a statement issued on Sunday titled ‘Recovery for N5tn debt burden, AMP scheme pivotal – AMCON CEO’ and signed by the Managing Director, Ahmed Kuru.

This was after a two-day training for Asset Management Partners of AMCON in Lagos.

“The AMPs scheme of the government agency currently has about 6,000 Eligible Bank Assets at different stages of resolution and about 3,000 matters at various courts in the country,” the corporation said.

AMCON said through the AMPs, it was essential that each of the cases were properly captured as they progressed in the courts.

Kuru also revealed that five years after AMCON launched the AMP scheme, the initiative had been a major tool in the recovery efforts of the corporation and key to its success.

The statement recalled that AMCON was making efforts to recover over N5tn from obligors that had remained unwilling to repay their debt.

It said of this figure, the government agency had informed Nigerians that only 350 obligors alone accounted for N3.6tn, which was over 82 per cent of the outstanding exposure.

Business, Lifestyle, World News

Bill & Melinda Gates Foundation have sold all their shares in Apple and Twitter just to purchase stock in a South Korean firm, Coupang, which operates in global e-commerce market.

No Comments

Bill & Melinda Gates Foundation have sold all their shares in Apple and Twitter just to purchase stock in a South Korean firm, Coupang, which operates in global e-commerce market.

The couple had sold their one million Apple shares and the 272,420 Twitter shares by the end of the first quarter in 2021, indicating the sale took place before their divorce was made public.

The capital from the sold shares was divested into Coupang which had its public listing in March. The divestment from Apple came at a period the smart gadget firm’s stock was losing market value.

Business

Elon Musk’s Starlink plans to launch in Nigeria, to compete with MTN, Glo, Airtel

No Comments

Tesla founder, Elon Musk through SpaceX, is in the process of getting necessary licences to bring Starlink, its satellite-based broadband services to Nigeria; a move that will pit it against network providers like MTN Nigeria, Globacom, Airtel and 9mobile.

Starlink is under SpaceX, an American aerospace manufacturer, which is also owned by Musk.

The company had been in discussion with the Nigerian Communications Commission, NCC virtually for several months.

Having made significant progress in the discussion, the NCC granted SpaceX’s request for a face-to-face discussion to gain better insights on the prospects of its proposal.

Executive Commissioner, Technical Services, NCC, Ubale Maska, said, “As the regulator of a highly dynamic sector in Nigeria, the commission is conscious of the need to ensure that our regulatory actions are anchored on national interest.

“We have listened to your presentation and we will review it vis-à-vis our regulatory direction of ensuring effective and a sustainable telecoms ecosystem where a licensee’s operational model does not dampen healthy competition among other licensees.”

The SpaceX’s team was led by SpaceX’s Starlink Market Access Director for Africa, Ryan Goodnight.

The NCC said it was interested in making necessary regulatory efforts to increase broadband penetration in the country as contained in the Nigerian National Broadband Plan, 2020-2025.

The agency is empowered by Section 70 (2) of the Nigerian Communications Act (NCA), 2003 to regulate the provision and use of all satellite communications services and networks, in whole or in part within Nigeria or on a ship or aircraft registered in Nigeria.

Starlink is an Internet service launched by SpaceX to provide high-speed, low-latency broadband connectivity especially in areas of the globe where Internet is expensive, unreliable, or entirely unavailable.

Starlink satellites are 60 times closer to earth than traditional satellites, hence they are suited to areas where ground infrastructure might be a challenge to ensure that they can deliver high-speed broadband Internet to areas where the infrastructure is missing.

Business

Honeywell tackles CBN over loan default claim

1 Comment

Honeywell Flour Mills has questioned a statement by Godwin Emefiele, Governor of Central Bank of Nigeria (CBN) that it defaulted on its loan from First Bank of Nigeria.

CBN on Thursday had instructed Honeywell to repay within 48 hours its loan obligations to First Bank.

“The insiders who took loans in the bank, with controlling influence on the board of directors, failed to adhere to the terms for the restructuring of their credit facilities which contributed to the poor financial state of the bank,” CBN said in a statement announcing the sack of board members of First bank and FBN holdings.

The insider is believed to be Oba Otudeko, one of the sacked board members and owner of Honeywell Flour Mills.

The apex bank also threatened, it will take appropriate regulatory measures to ensure it is paid.

However, in a statement on Friday signed by its company secretary Yewande Giwa, the food and the agro-allied company said the outstanding loan with the bank is based on agreed terms.

With reference to the credit facility with First Bank of Nigeria (FBN); over many decades, the company has had a long standing, mutually beneficial credit relationship and continues to fulfill all its obligations to the Bank, and all its facilities are fully performing,” the statement reads.

The statement which was submitted to the Nigerian Exchange Limited, also noted that the company has adequate security to cover its loan exposure and has not defaulted or shown signs of distress.”

“The terms of the loan with FBN have been fulfilled in line with industry standards and in accordance with agreed terms throughout its course and the Company expects to continue to do so.

We remain committed to complying with regulations governing our industry and our obligations to First Bank and our various financial counterparts”, it said.

Close Menu

Privacy Policy