Business

JUST IN… Nigerian govt to spend $1.5b to rehabilitate Port Harcourt refinery

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The Federal Executive Council on Wednesday approved $1.5 billion for the rehabilitation of the Port Harcourt Refinery.

The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this to State House correspondents at the end of the FEC meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

The minister said: “The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of $1.5bn and it was approved by council today.

So, we are happy to announce that the rehabilitation of the refinery will commence in three phases. The first phase is to be completed in 18 months, which will take the refinery to a production of 90 percent of its nameplate capacity.

“The second phase is to be completed in 24 months and all the final stages will be completed in 44 months and consultations are approved.

“And I believe that this is good news for Nigeria.”

The Nigerian National Petroleum Corporation (NNPC) had reportedly held talks with investors to raise around $1 billion in a prepayment with trading firms to refurbish the refinery.

Business

One in 35 graduates in Nigeria is jobless

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At least one in 35 Nigerian graduates are unemployed in Nigeria, the National Bureau of Statistics (NBS) has revealed in its Labor Force Statistics released on Monday

The graduates include, holders of Nigeria Certificate In Education (NCE), Ordinary National Diploma (OND), nursing certificate, Higher National Diploma (HND), Bachelor of Science(Bsc) degree, Masters of Science(Msc), Doctorate (PhD) and also professor certificate.
This indicates that becoming graduates as a guarantee to finding a job is long gone.

According to NBS data, the total number of Nigerians with at least Ordinary National Diploma are 12,329,987(12.3 million) out of which 4,394,550(4.39 million) are currently jobless.

Breakdown shows in the labour market 5,779,243(5.77 million) are with NCE/OND/Nursing certificates, out of which1,849,984(1.84 million) number are currently jobless

The same reality goes also for 5,940,546(5.9 million) in the labour market with BA/BSc/HND degrees out of the number 2,382,052(2.3 million) are out of work.

The report also showed that the 349,306 in the labour market with masters’ degree 97,196 are unemployed.

Even 73,859 Nigerians with Doctorate certificate(PhD), 12,483 are also unemployed.

Moreso, 52,835 Nigerians with Tech/Prof certificate, NBS noted are currently unemployed out of 187,033 in the labour market.

“This is devastating especially for recent graduates trying to enter the workforce, as opportunities, regardless of qualifications, were now becoming few and far between,” Mercy James a HR expert explained.

Not only good degree but preparedness for the expectation of the prospective employers should also be in the goal of graduates as conditions in the labour market at present are brutal, and data has showed it is increasingly clear, have a mountain to climb,” she advised.

Business, World News

Nigerians will pay N6.98 naira per transaction using USSD

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The Central Bank of Nigeria has set new charges payable by customers using USSD services for their financial transactions.

The apex bank said the transaction fees are effective Tuesday, setting a flat rate of N6.98 per transaction.

This was contained in a statement released on Tuesday and signed by the apex bank’s Acting Director, Corporate Communications, Osita Nwanisobi; and Director, Public Affairs, Nigerian Communications Commission, Ikechukwu Adinde.

The announcement was released in a statement titled, ‘Joint Statement By Central Bank Of Nigeria and Nigerian Communications Commission On Pricing Of Unstructured Supplementary Service Data (USSD) Services’.

‌The document reads;

“Effective March 16, 2021, USSD services for financial transactions conducted at DMBs (Deposit Money Banks) and all CBN-licensed institutions will be charged at a flat fee of N6.98 per transaction. This replaces the current per session billing structure, ensuring a much cheaper average cost for customers to enhance financial inclusion. This approach is transparent and will ensure the amount remains the same, regardless of the number of sessions per transaction.

The new rates come after the meeting held by the banking sector and telecommunications under ALTON on Monday to discuss and resolve the N42 billion debt owed mobile operators by banks.

The federal government had last week asked telecommunication operators to suspend their threatened withdrawal of USSD services over a N42bn debt owed by banks, a move that stood to affect estimated 40 million consumers, who rely on the short codes as opposed to internet services.

The Minister of Communications and Digital Economy, Isa Pantami, had convened a meeting with financial institutions and mobile network operators on Monday.

Business

Okonjo-Iweala says Nigeria’s global, African trade contribution poor

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The Director-General of the World Trade Organisation, Ngozi Okonjo-Iweala, said Nigeria should improve its trade contribution globally and in Africa.

She said Nigeria held a small fraction which is below the country’s capacity.

She stated that Nigeria’s global trade contribution is 0.33 percent, while the country accounts for 19 percent in Africa’s economy. Okonjo-Iweala said the African quota is lower than Nigeria’s gross domestic product.

“Nigeria’s share in world trade is 0.33 per cent, this is a small fraction of what we could do. Our share in Africa’s trade is 19 percent, which is below our share of Africa’s gross domestic product (GDP). This means we can turn it around.

This means that we must step up our action on the economy, we must do better and harder in several ways because of our youth who are waiting for jobs. Nigeria needs to focus on adding value on transitioning.

“We are an oil and gas-based economy; and that has sustained us and still will. But the world is moving away from fossil fuel.” NAN quoted Okonjo-Iweala who said this on Monday, during a courtesy visit to the Minister of Industry, Trade and Investment, Adeniyi Adebayo.

The WTO DG said job creation is the solution, however, Nigeria’s unemployment rate keeps rising, with the Nigerian Bureau of Statistics (NBS) disclosing on Monday that unemployment rose 33 percent as of December 2020. The statistic agency stated that 23 million Nigerians are unemployed.

In his reaction to the statement, Adebayo said Nigeria needs more targeted technical assistance from the WTO in order to overcome its capacity difficulties which has affected the country’s contribution to global trade.

“I also wish to draw your attention to our capacity difficulties which continue to undermine our effective participation in the multilateral trading system.

While we acknowledge with thanks the capacity-building efforts of WTO around training officers on international trade governance, the need for more targeted technical assistance from the WTO cannot be overemphasised.”

Business

NSE: Investors lose N45.33bn. WAPIC, NEM among top gainers

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Investors at the Nigerian Stock Exchange (NSE) lost N45.33 billion at the end of the trading activities on Monday.

Activities ended at the bourse with equity capitalisation standing at N20.17 billion, lower than the N20.22 trillion recorded on Friday.

The All Share Index (ASI) fell by 0.22 percent to hit 38,561.84 ASI on Monday.

However, this was a marginal drop from the 38,648.48 recorded at the end of trading last Friday.

The day ended with 3,527 deals which produced 184.52 million shares worth N2.51 million.

This is significantly lower than the 293.97 million shares worth N3.76 billion which exchanged investors’ hands in 3,760 deals four days ago.

For the gainers’ list, WAPIC led the way as the company’s share price rose by 10 percent to end trading at N0.55kobo from N0.5kobo per share.

NNFM’s share price rose by N0.55kobo to move from N5.65kobo to N6.20kobo per share.

Smart Real Estate gained 8.33 percent during trading and increased its share price from N0.24kobo to N0.26obo.

NEM’s share price rose by N0.16kobo to end trading at N2.19kobo from N2.03.

Berger Paint gained N0.45kobo in share price to move from N6.05 to N6.50kobo per share at the end of trading.

Regalins topped the losers’ chart after losing 9.09 percent to drop from N0.33kobo to N0.3kobo at end of trading.

Livestock’s share price declined from N2 to N1.83kobo following a loss of N0.17kobo in its share price.

Nigerian Breweries share price plunged by N2.65kobo to end trading at N47 per share from N49.65kobo.

Jaiz Bank’s share price declined from N0.65kobo to N0.62kobo per share after losing 4.62 percent in share price.

LASACO completed the list as its share price fell by 4.62 percent to end trading at N1.24kobo per share, having opened trade with N1.3kobo.

For traded shares, First Bank was the most active stock on Monday as investors traded 31.14 million shares worth N225.97 million.

Notore’s shares were traded at a volume of 22 million and valued at N1.37 billion.

Fidelity Bank was next with 15.28 million shares traded at a cost of N35.30 million.

Sovereign Insurance reported 10.78 million shares worth N2.41million, while Transcorp recorded over 8.68 million traded shares at a value of N7.10 million.

Business

Nigeria’s debt stock increases by N6.7bn in 2020 to N32.91tn – DMO

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The Debt Management Office (DMO) has revealed that Nigeria’s total public debt as at December 31, 2020 now stands at N32.91 trillion.

This represents an additional N6.7 trillion when compared to N26.21 trillion recorded as of the corresponding period of 2019.

According to a statement released on Monday, DMO also noted that the total public debt to Gross Domestic Product as at December 31, 2020 was 21.61 percent which is within Nigeria’s new limit of 40 percent.

It should be noted though, that apart from the New Domestic Borrowing of N2.3 Trillion, the other New Borrowings were concessional Loans from the International Monetary Fund (USD3.34 Billion) and other multilateral and bilateral lenders,” the statement said.

“This incremental borrowing to part-finance the 2020 Budget and the additional issuance of Promissory Notes to settle some arrears of the Federal Government of Nigeria, contributed to the increase in Public Debt Stock. New Domestic Borrowings by State Governments also contributed to the growth in the Public Debt Stock.” DMO added.

Public debts include the debt stock of the Federal and State Governments, as well as, the Federal Capital Territory.

Business

DPR approved 14 refineries in 2020 – Report

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The Department of Petroleum Resources (DPR) granted licences to 14 private investors to build refineries in the country last year.

The agency disclosed this in its latest report on the list of valid refineries obtained by Ripples Nigeria on Sunday.

The 14 refineries, according to DPR, have the capacity to refine 362,000 barrels of oil per day, (bpd).

This was in addition to the 579,000 bpd capacity refineries approved by DPR between 2017 and 2019.

The report revealed that the refineries are to be located in four states.

These are – Delta (7), Bayelsa (3), Akwa Ibom (3) and Ogun (1).

Ripples Nigeria gathered that out of the 14 investors, three got the Licences to Establish (LTE).

This means that DPR has approved and confirm their proposed project, market plan, products specifications and site selection of proposed crude oil.

10 investors got the Approval to Construct (ATC), a licence that gives the investors a period of 24 months to record at least 50 percent mechanical erection otherwise the revalidation of the approval to construct refineries will become necessary.

The remaining investor got the Approval to Relocate (ATR) licence, meaning the investor can relocate and construct its refinery in Nigeria.

Business

Nigeria spends N21bn searching for oil, others in January

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The National Petroleum Investment Management Services, (NAPIMS), a subsidiary of the Nigerian National Petroleum Corporation, (NNPC) has disclosed it incurred N126.17 billion expenses in January.

Out of the sum, N21.47 billion was spent on oil search in the frontier basins, rehabilitation of the nation’s refineries, and the Nigeria-Morocco gas pipeline.

NAPIMS disclosed this in its February presentation to the Federation Account Allocation Committee (FAAC).

Giving a breakdown of the expenses, NAPIMS revealed N8.33 billion was spent on rehabilitation of refineries; pre-export financing received N5 billion.

Other funded items listed include N1.96 billion funding for the frontier exploration services involves the search for hydrocarbons in inland basins, especially in the north, N3.17 billion for the National Domestic Gas Development and Gas N2.39 billion on Infrastructure Development.

Also, Crude Oil Pre-Export Inspection Agency Expenses and pre-export financing cost N402.69 million; Renewable Energy Development financing gulped N119.83 million while N83.33 million financing was provided for the Nigeria-Morocco pipeline.

Compared with the previous month, the NNPC spent a total of N20.23 billion on all the projects, with the refineries getting N8.33 billion while N4.19 billion and N3.17 billion were spent on the national domestic gas development and gas infrastructure development respectively.

Despite the expenses, the report revealed that N90.85 billion was remitted to the federation account in January.

Business

Nestle S.A tightens its control in Nestle Nigeria with N3.7bn

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Nestle S.A invested N3.69 billion into Nestle Nigeria to tighten its control at the Nigerian food and beverage company.

The capital investment increased the Switzerland-based holdings in Nestle Nigeria.

The company made three share purchases in March, with accumulated shares valued at N3.69 billion.
The most recent acquisition was the 562,796 shares purchased at N1374.92 per share on Friday, March 12, 2021.

This put the new capital invested in the Nigerian subsidiary by Nestle S.A at a total of N773.79 million, according to analysis of a filling sent to the Nigerian Stock Exchange (NSE).

Out of 836,141 shares traded on Nestle Nigeria at the trading floor, on Friday, Nestle S.A acquired 562,796 shares. This is one of many capital investment Nestle S.A have made into the local fast moving consumer goods.

In the first week of March, Nestle S.A purchased shares on two occasions. It acquired 2.16 million shares within two days. The first acquisition was on Tuesday, March 2, when it bought 1,980,370 shares of Nestle Nigeria worth N1,348.84 per share.

The company made another purchase on Wednesday, March 3, acquiring 186,277 shares at N1,349.74 per share. This brings the total number of shares bought to 2,166,647 at an aggregate price of N1,349 per share, a statement sent to investing public reported.

This means to strengthen its hold on Nestle Nigeria as a majority shareholder, Nestle S.A invested N2.92 billion in the Nigerian subsidiary, but Ripples Nigeria gathered the shares were bought at a cheap price when compared with the previous day share price on Nigerian bourse.

On Monday, March 1, Nestle share price was N1,450 before crashing on March 2, to settle at N1,350 per share, and traded flat till Thursday, March 4. Nestle S.A had bought most of the shares traded by Nestle Nigeria investors between March 2 and 3, 2021.

On March 2, Nestle Nigeria traded share volume was 2,023,973 shares (Nestle S.A; 1,980,370), while the next day, it was 229,087 (Nestle S.A; 186,277).

As of December 2020, Nestle S.A held 527.08 million shares in Nestle Nigeria, which represents 66.50 percent hold on the Nigerian subsidiary. This makes Nestle S.A the largest shareholder in the company.

Other shareholders in Nestle Nigeria are Stanbic IBTC Nominees Limited with 6.28%. No other shareholder held 5% or more of the paid-up capital of the company as of December 31, 2020.

Aside from investing capital into Nestle Nigeria, the foreign shareholder will also receive a dividend payment of N29.72 billion from the subsidiary, the company’s financial statement for the period ended December 31, 2020, report.

The additional share purchase of Nestle Nigeria comes on the back of revenue growth in 2020 full year, with the company generating N287.08 billion to surpass the N284.03 billion grossed during the corresponding period of 2019.

Although, profit before tax declined to N60.63 billion in 2020 full year, below the N71.12 billion recorded during the same period in 2019. Also, profit after tax plunged to N39.21 billion during the period under review, failing to surpass the N45.68 billion reported for the 2019 full year.

Business

UK, Nigeria in partnership to bridge technological gap

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The United Kingdom has reiterated its commitment towards supporting the Federal Government to promote the growth of Nigeria’s tech ecosystem and close the digital divide in the country.

Ben Llewellyn-Jones, OBE, the British Deputy High Commissioner to Nigeria, stated this on Thursday, March 11, in Lagos.

This was during a virtual technical conference facilitated by the UK’s Digital Access Programme on Digital Inclusion for Underserved/Unserved Communities and Persons Living with Disabilities (PLWDs).

“As our fight against the pandemic goes on, our focus is on supporting a sustainable and resilient recovery across Nigeria,” he told participants at the conference.

Llewellyn-Jones added, “Tech has the ability to help us tackle some of the greatest social challenges of our time – from protecting our environment and reducing carbon emissions, to transforming health systems, saving lives through diagnosing diseases earlier, to aiding economic inclusion by deepening access to underserved populations.

“To drive this growth, Nigeria needs a combination of increased access to faster and better quality internet connectivity infrastructure, and upskilled tech talent pool, a vibrant start-up ecosystem, access to investment, and partnership opportunities both regionally and internationally.”

Furthermore, the UK envoy explained that the conference was organised as a catalyst to aggregate views and develop quick-win strategies to resolve the issues of populations without access to digital, in order to bring poor and excluded people into the digital economy, reducing poverty and stimulating economic growth.

Business

Why MTN can’t repatriate over N106bn profit from Nigeria

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MTN group says it is yet to repatriate R4.2bn (over N106bn) profits made from Nigeria back to South Africa due to the challenge of accessing foreign currency.

The MTN Group President and Chief Executive Officer, Ralph Mupita, disclosed this while announcing strong results across its twenty-one African markets.

According to Mupita, as at 31 December 2020 only R286 million (about 707.1million) out of the profits made from Nigeria has been successfully sent back to South Africa.

MTN group posted an impressive double-digit growth in earnings in 2020, doing especially well on its medium-term targets.

The group financial statements shows about 29 million new subscribers were added during the year under review, bringing MTN’s group subscriber base to 280 million in Africa.

In 2020, MTN also revealed new 19 million data users were added and nearly 12 million Mobile Money users, to reach totals of over 114 million and 46 million respectively.

The company said these numbers helped grow its service revenue by 11.9 percent to R170-billion and earnings before interest, taxes, depreciation and amortisation (Ebitda) increasing by 13.4 percent.

MTN also reported a 52 percent increase in adjusted headline earnings a share, a four-percentage point increase in return on equity to 17 percent and a more than doubling in operating cashflow to R28.3 billion.

Basic earnings a share increased by 87 percent, good operational performance and an improved contribution of the share of profits from associates and joint ventures.

MTN Group’s capital expenditure was R28.6bn and its net debt was reduced by R12bn to R43bn.

However, MTN announced suspension on its full year dividend for 2020.

The board said it would communicate a revised medium-term dividend policy after the announcement of its 2021 financial year results in March 2022.

On assessment of the progress of cash upstreaming from Nigeria, ARP delivery and COVID-19 impacts, the board will consider returning further cash to shareholders in the form of special dividends or share repurchases after the release of FY2021 result,” the statement noted.

Business

UBA interest expense declines, as PAT hits N113.76bn in 2020

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Interest expense of United Bank for Africa (UBA) fell by 7.9 percent in 2020, analysis of the company’s financial statements showed.

Interest expense, which is a cost incurred on borrowed funds hit N168.39 billion.

The N168.39 billion in twelve months showed a difference of -7.9 percent when compared to the N182.95 billion reported as interest expense in the corresponding period of 2019.

During the same period of dip in interest expense, UBA grew its payment of interest (Interest Income) to customers, after borrowing fraction of account holders’ deposit to fund loan applicants.

According to the financials obtained by Ripples Nigeria, UBA’s Interest Income rose to N427.86 billion in 2020 full year, surpassing the N404.83 billion paid to customers in the same period in 2019.

The financials also reported that UBA grew its profit before tax (PBT) and profit after tax (PAT) during the twelve months period of last year. PBT ended closed the year 2020 with with N131.86 billion, surpassing the N111.28 billion reported for 2019 period.

PAT rose to N113.76 billion during the twelve months period of last year, rising above the N89.08 billion UBA reported during the corresponding period of 2019.

Business

Crude oil hits two year high at over $70 per barrel

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Crude oil price opened the week on Monday trading at $70 per barrel more than two percent it traded on Friday following reports of attacks on Saudi Arabian facilities.

This is the first time since 2019; the price of oil has went past the $70 mark. The last time was in May 2019 according to data from oil price.

However, worries remained that higher prices could mean some Organization of Petroleum Exporting Countries (OPEC) members will want to pump.

The Organization of Petroleum Exporting Countries and its allies including Russia had been debating whether to restore as much as 1.5 million barrels a day of output.

Nevertheless, with the oil pricing rising above record level, this could mean more income for Nigeria at least for the near term.

Nigeria’s 2021 approved budget oil prices benchmark is $40 a barrel and 1.86 million barrels a day of crude production.

Business

Indian firms invest N591.84bn in Nigeria

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Indian companies’ financial commitments to their subsidiaries and joint-ventures in Nigeria reached $1.44 million (N591.84 billion) in the first two months of this year.

Data from Reverse Bank of India (RBI) obtained by Ripples Nigeria revealed that the investments were made in construction, agriculture, mining, retail, restaurants, and hotel.

However, all the financial commitments made are in form of loans.

Analysis of the data revealed that $596,000 worth of loan was issued out by Damodar Agro Industries Private Limited, Lloyd Insulations (India) Limited, and Transrail Lighting Limited to their Nigeria subsidiaries in January.

Transrail Lighting Limited gave another $750,000 loan to its subsidiary, Transrail Lighting Nigeria Limited while Ecovista Industries Pvt Limited got $100,000 from its parent company in India, Damodar Agro Industries Private Limited, in February.

For year-on-year, the total transactions for February represent a 175 percent increase over the $308,000 transaction recorded in February 2020.

Business

Financial experts, businessmen criticise CBN’s naira for dollar incentive

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Financial experts and businessmen have criticised the “Naira for dollar” incentive initiated by the Central Bank of Nigeria (CBN). The apex bank had directed deposit money banks to reward beneficiaries of diaspora remittances.

In a memo dated March 5, 2021, the CBN directed commercial banks to pay recipients of diaspora remittances N5 for every one dollar in a bid to channel foreign exchange into the official market.

The incentive is also a drive to reduce inflow of dollars into the black market where rates are higher. While the CBN expects the Naira for dollar incentive to boost participation in the official exchange market, financial analysts and businessmen think otherwise.

Financial planner, Kalu Aja, in his reaction to the CBN incentive, said the action by the apex body doesn’t line up with its policy. He said CBN should devalue the naira in order to match with the black market price.

“Clearly the CBN wants Dollar inflow. It has devalued, it has prohibited, it has issued numerous circulars. However it has offered to sell its biggest contributor of FX to Mr Dangote in Naira not $ (dollar). Actions do not line up with policy.” Aja said in a note on his Twitter platform.

In his series of comments, Aja said, “CBN is not blind. The black market rate is higher than the CBN rate. Why would anyone send $ (dollar) via official means?If you want access to the diaspora funds, then devalue your currency to match the “street”. The laws of men cannot usurp the laws of economics.”

Aja added, “Remember the $ (dollar) CBN rate of N140  excludes the demand of 44 banned items. The black market $ (dollar) rate includes the full demand from all importers in Nigeria. The CBN exchange is artificial. If u can receive cash in $ (dollar) and sell to who I prefer, why is there an official rate?”

“On numerous wassapp (WhatsApp) groups, you see messages like”I have $5000, need N (naira)”. Those transactions are concluded in private.Paying N5 will not move those transactions to banks. 44 items are still banned from CBN fx auction, CBN told them to “go source their forex” They have. Why N5?” Aja said.

Another critic of the CBN initiative, Aloy Chife, Managing Partner or Saana Capital, said as long as gap remains between the official rate and black market, the incentive will not result to projected outcome.

Chife advised that the Naira should be floated, “As long as the delta between the official rate and the parallel market rate of the Naira remains negative, incentives like the CBN BOGOF (buy one get one free, or thereabouts) will not move the needle.

“Float the Naira. Let’s swallow the bitter pill in one gulp.” Chife suggested in a comment he made in reaction to the CBN naira for dollar incentive.

Business, Lifestyle

John McAfee charged with fraud over cryptocurrency

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Businessman John McAfee, creator of the McAfee anti-virus software, has been charged in the US with conspiracy to commit fraud and money laundering.

Mr McAfee and his bodyguard Jimmy Gale Watson Jr are accused of promoting cryptocurrencies to Mr McAfee’s large Twitter following to inflate prices.

The currencies were then allegedly sold, making the pair $13m (£9.4m), prosecutors said.

The men have not commented on the charges.

Mr McAfee is currently being detained in Spain in relation to separate criminal charges relating to tax, which he denies.

Mr Watson was arrested on Thursday night.

Under the charges filed in the Manhattan federal court in New York, the pair are accused of buying the crypto-currency assets before promoting them on Twitter, where Mr McAfee has more than one million followers.

They would then sell the assets as soon as Mr McAfee’s endorsements saw prices rise, according to the US Department of Justice and the US Commodity Futures Trading Commission.

That amounted to having “exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception,” US Attorney in Manhattan Audrey Strauss said.

Business

CBN extends grace period on intervention loans for one-year

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The Central Bank of Nigeria (CBN) has extended its forbearance on intervention loans obtained from the apex bank. A new regulatory directive was issued following the expiration of the previous deadline.

In March 2020, CBN offered businesses COVID-19 palliatives in form of reduced interest rates on its intervention funds to companies from 9 percent to 5 percent per annum.

This was meant to assist businesses affected by the government’s measures against COVID-19 outbreak, and clear their financial constraint.

The reduced interest rate was meant to last for a year, same as the moratorium which was tied to the intervention loans. The low interest rate and the moratorium expired at the beginning of March 2021.

However, the CBN won’t enforce payment of debt, as the regulatory body extended the palliative by twelve months, until February 28, 2022.

But the grace provided by CBN won’t affect all debtors, only businesses that obtained CBN loans in Deposit Money Banks and credit facility from Bank of Industry (BOI).

Following the expiration of the above timelines, the CBN hereby approves as follows: 1) The extension by another twelve (12) months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities; 2) The roll-over of the moratorium on the above facilities shall be considered on a case by case basis.” CBN said in a statement on Wednesday.

Business

Bitcoin is catalyst for change, US SEC nominee disagrees with CBN

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The nominee for United States’ Securities and Exchange Commission (SEC), Gary Gensler, has described bitcoin as a catalyst for change.

Gensler said while SEC under his leadership will protect investors, the commission also intends to support the usage of bitcoin.

Gensler’s comment on bitcoin has given the cryptocurrency some weight following criticism from the Central Bank of Nigeria (CBN), which said cryptocurrency is used for criminal activities.

The CBN governor, Godwin Emefiele and the apex body, had stated that no serious and credible investor wants to associate with cryptocurrency, but the statement of Gensler has proven otherwise.

Gensler spoke of his plan for cryptocurrency during the US Senate confirmation hearing.

He said bitcoin and other cryptocurrencies have redefined financial inclusion as the digital assets provided new method for payment. With the high level of risk investors are exposed to, Gensler said investors protection will be a priority.

“These innovations have been a catalyst for change. Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection that we still need to attend t,” he said.

In curbing the risk cryptocurrency poses to investors, Gensler said, “I’d work with fellow commissioners to both promote the new innovation, but also at the core, ensure for investor protection.

If something were security, for instance, it comes under the securities laws, comes under the SEC. If there are exchanges that trade those, to ensure that there’s the appropriate investor protection on those exchanges, so promote technology but still stay true to our core values of investor protection and capital formation,” Gensler said.

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