Naira falls to 360 as dollar demand rises

The naira weakened further on Friday, trading at 360 to the United States dollar at the parallel market, amid a rise in demand for dollars by fuel importers.

The local currency stood at 341 at the unofficial market on Thursday, a day after the Federal Government announced the removal of fuel subsidy and a new petrol price band of N135 to N145 per litre.

The government said fuel importers were allowed from now on to get dollars from the parallel market to help ease acute shortages – likely to result in increased demand for dollars, and more pressure on the naira, as importers increased their orders.

Meanwhile, it was being rumoured in some quarters that the Central Bank of Nigeria had secretly devalued the naira.

When contacted, the spokesperson, CBN, Mr. Isaac Okoroafor, said it was not true that the naira had been devalued.

However, traders and financial experts have attributed the drop in the naira value to demand pressure from buyers, speculation, the announcement that fuel marketers should source forex from the secondary sources and hoarding.

The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said, “More speculators are taking a position in the market, causing dollar scarcity and fall in the value of the naira. There is the need for intervention from the Central Bank of Nigeria. If not, the speculation will continue and the currency may fall to 380.”

The Head of Investment Research, Afrinvest West Africa Limited, Mr. Ayodeji Ebo, said if the CBN failed to take an immediate action by adjusting the naira, the pressure on the naira would be very significant.

He said, “I think the knee-jerk reaction being witnessed in the parallel market can be linked to new development within the oil space that now allows oil importers to buy foreign currency from the parallel market.”

Read More

Fuel price hike: Naira in free fall against dollar

the naira fell to 341 against the United States dollar at the parallel market on Thursday from 321 following Wednesday’s removal of subsidy on petrol and the announcement of N145 per litre as the maximum pump price.

The local currency was trading at 199.40 to the greenback on the official interbank market, around the 197 official peg rate.

In announcing the deregulation of the downstream petroleum sub-sector, the Federal Government had said the decision became imperative in the face of extreme difficulties being faced by petroleum product importers in sourcing foreign exchange, adding that importers would henceforth be permitted to source for their forex requirements from secondary sources.

Interpreting secondary sources as the parallel market, an analyst at FBNQuest, Mr. Uwadiae Osadiaye, stated in a report on Thursday, “We expect increased pressure on parallel market rates to be a major fallout of this decision.”

The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, in a telephone interview with one of our correspondents, confirmed the six per cent drop in the value of the naira on Thursday.

He said, “The fall is partly as a result of the demand from the oil marketers, because now they have to source their dollars for imports at the secondary market. So, that has really eaten the market up and people that are having dollar positions have started to draw back.

“If the pressure continues, and then, there is no any form of further deepening of the market by the Central Bank of Nigeria, I expect the naira to weaken to about 360 or 370 in the coming weeks. Let the CBN look at how they can really make the BDCs to perform their role of servicing the critical retail sector of the market.”

Also on Thursday, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, explained that the government could not provide foreign exchange for the importation of fuel as a result of the decline in earnings from crude oil sales.

“You cannot give what you don’t have. If you free up Nigerians to find sources of funds, they will find those secondary funds. They will import the product; the burden on the NNPC will reduce and the country will have peace and subsidy will go away permanently,” he said.

Meanwhile, the Nigeria Labour Congress has invited civil society bodies in the country to attend its emergency National Executive Committee meeting today (Friday) to discuss an appropriate response to the removal of subsidy on petrol.

The General Secretary, NLC, Dr. Peter Ozo-Eson, told one of our correspondents that the congress had written to the civil society bodies in Abuja and Lagos to be part of the NEC meeting and that they had agreed to the request.

Ozo-Eson said that the NLC had moved the NEC meeting it earlier called for Monday next week to deliberate on the 45 per cent increase in electricity tariff today (Friday) because of the unexpected removal of fuel subsidy.

The NLC’s scribe also denied the claim by Kachikwu that the fuel subsidy was removed after consultations with all relevant stakeholders.

He stated that the NLC, Trade Union Congress, Nigeria Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association of Nigeria were invited for the first time to attend a meeting at the office of the Vice President on Tuesday.

Similarly, the TUC is to hold an emergency meeting of its National Executive Committee today (Friday) to take a position on the subsidy removal.

The President, TUC, Mr. Bala Kaigama, and Acting, Secretary General Simeso Amachree, said in a statement on Thursday that the congress did not know how the government arrived at the new price of N145 for fuel.

The union leaders also wondered how the government came about the decision to allow market forces alone to determine the cost of petrol.

However, the Northern Elders Council has expressed support for the removal of fuel subsidy.

According to the group, the long-term benefits of the decision outweigh the short-term pains associated with it.

The Chairman, NEF, Alhaji Tanko Yakassai, said this in a telephone interview with one of our correspondents in Abuja on Thursday.

However, the Executive Director, Centre for Global Solutions and Sustainable Development, Mr. Adebowale Adeniyi, described the removal of fuel subsidy at this time as insensitive and sudden.

With the implementation of a new price band of N135 to N145 per litre for Premium Motor Spirit, the Federal Government will make profits from the sale of the product through the Nigerian National Petroleum Corporation filling stations across the country.

Checks revealed that many filling stations, including those belonging to the NNPC, had adjusted their pump price to N145 per litre, a development that prompted an increase in transport fares by at least 100 per cent in Lagos and Ogun states.

Some motorist, who spoke with our correspondents in separate interviews, described the hike in petrol price as unexpected and painful.

Meanwhile, the Petroleum Products Pricing Regulatory Agency, in a letter dated May 11, 2016 and addressed to marketers, said the minister had approved the implementation of an appropriate pricing mechanism for PMS.

It said some components on the pricing template were increased, with lightering expenses now N4.56 as against N2; Nigerian Ports Authority fee up from N0.21 to N0.84; NIMASA charge, from N0.15 to N0.22; financing, N2.51 from N0.64; retailers margin, N6 from N5; transporters charge, N3.36 from N3.05; dealers margin, N2.36 from N1.95; bridging fund, N6.20 from N4; and administration charge, N0.30 from N015; while the marine transport average remains at N0.15.

The removal of the fuel subsidy was greeted with a spike in transport fares in Yola, the Adamawa State capital.

The same situation obtained in Ogun State, as transport fares had been significantly increased.

For instance, a trip from Sango Ota to Abeokuta, which hitherto attracted between N250 and N300, had motorists paying between N400 and N500 on Thursday. Similarly, a journey from Oju Ore to Sango, which used to attract N50, had increased to N70.

Instead of reducing the long queues of motorists at filling stations, the increase in the pump price of petrol worsened the situation in Abuja and neighbouring states on Thursday.

However, the National Orientation Agency urged Nigerians not to take undue advantage of the removal of subsidy to inflate the prices of goods and services.

The Acting Director-General, NOA, Mrs. Ngozi Ekeoba, who made the call in a statement made available in Abuja on Thursday, also urged Nigerians to show understanding and cooperate with the government.

Read More

NSCDC destroys 400 illegal mini refineries in Bayelsa

THE Nigerian Security and Civil Defence Corps (NSCDC) in Bayelsa State has destroyed more than 400 illegal mini refineries operated by oil thieves in state.
The state NSCDC commandant, Mr Desmond Agu, told the News Agency of Nigeria (NAN) in Yenagoa that the illegal refineries were destroyed between January and March.
Agu said the command now had a gunboat to fortify its operational capacity and had intensified patrols in the coastal settlements and waterways in the state.
He said the intensified patrols by the command had led to the arrest of ex-militant leader and his gang, whom, he said, were being prosecuted.
Agu said the corps had deployed its personnel to provide security to critical national assets and oil facilities across the state.
“We are on ground to ensure safety and protection of vital oil infrastructure and property within the command. The command is determined to deal with the oil thieves and end their illegal businesses.
“We have made some arrests concerning the recent cases of vandalism at Agip’s oil fields in Southern Ijaw Local Government Area of the state.
“The corps recovered the bodies of the three oil workers that died in the explosion in one of the fields on March 26. We have handed over the bodies to Agip.
“The case has also been handed over to the Bayelsa State police command because it involves death and falls outside our mandate,” Agu said.
Dr Peter Idabor, Director-General, National Oil Spills Detection and Response Agency (NOSDRA), had earlier attributed the death of the oil workers to poor safety procedures at the oil field.
Meanwhile, officials of Nigeria Agip Oil Company (NAOC) in Bayelsa and its parent company, Eni, have declined comment on the Easter Sunday’s explosion.

Read More

Nigerians slam Buhari, marketers over fuel scarcity

Many Nigerians, including civil society organisations, analysts and individuals have expressed anger and disappointment over the ongoing fuel scarcity across the country, blaming oil marketers and President Muhammadu Buhari, who doubles as the Minister of Petroleum, for their plight.

Nigerians have had to endure long hours at the few fuel stations that sell Premium Motor Spirit, otherwise called petrol, for about a week, with no end in sight to the problem.

There are also reports that the scarcity is compounded by oil marketers hoarding the product to sell at prices above the official pump price of N87 per litre.

Findings by naijatonic show that the product sells for between N100 and N150 per litre in most fuel stations across the country, with the product going for as high as N400 per litre in the black market.

Unusually long queues of vehicles and customers with kegs characterise the few stations that sell the product at the official pump price.

President Buhari recently announced himself as the Minister of Petroleum and this seems to have put him at the forefront of public criticisms over the issue.

Civil society groups, among other Nigerians, said that President Buhari, whose presidential campaign had promised to bring change to the country, has failed to deal with the problem of fuel scarcity.

For instance, the Northern Elders’ Council Chairman, Tanko Yakasai, blamed Buhari for failing in his promise to Nigerians to revive the oil sector, saying his tenure as Minister of Petroleum was kicked off on a bad note.

He said, “I’m buying from the black market. The start does not show a good signal for the new minister of petroleum resources. Buhari came to power on the strength of the change slogan. He promised to change what was happening in the country, so what we expected was change and not this.

“But look at what is happening under Buhari as the minister of petroleum resources. He came to power on the platform of change but there has been no change. If the same situation we used to experience has continued, so where is the change? What has he done better? We still have queues at fuel stations all over the country. He has been in power for many months and we are still grappling with fuel scarcity in the country. Is that change? Where is the change?”

Chairman, Civil Liberties Organisation, Bayelsa State, Nengi James, also said that the expectation of people in the Niger Delta was that the welfare of the people in the region would change for the better with Buhari’s government.

He said, “When we say change, we expect the security and welfare of the people to change for the better, but presently, apart from suffering from sea piracy and environmental pollution in the Niger Delta, there is environmental degradation.

“We are really suffering. The fuel situation is biting harder. The artisans who need the fuel to manage their lives are crying. No light and still no fuel. The illegal refineries have been shut down and they are the ones who cushion the effect of such crises.”

James expressed hope that the situation would improve, but warned Buhari that the wait for change should not take forever.

He said, “We are waiting to see what will happen, but we still expect that there will be changes over time but the wait for change cannot be endless. We need action; we are tired of talk with no action.”

A statement made available by the President of the Nigeria Labour Congreess, Ayuba Wabba, also urged Buhari to put an end to the suffering of Nigerians, saying the scarcity had persisted in spite of government’s assurance that it would be resolved within 72 hours.

It stated: “We note that this is happening despite assurances from government and its agencies that there is enough fuel being distributed around the country and that citizens need not go into panic buying.

“That the situation has not visibly improved after more than 72 hours of such assurance means that the marketers and other groups that have held the country hostage over the years for their unearned profiteering from the petroleum sector are still determined to continue as if it is business as usual.”

An environmental rights activist, Alagoa Morris, said he “thought the perennial fuel scarcity would have been a thing of the past,” adding that he was “surprised to learn that the Federal Government was still owing marketers and for that reason, the importers could not release fuel.”

He, however, advised the Federal Government to look inward for solutions, which he said include “encouraging the establishment of modular refineries in our creeks.”

He said, “All the refineries need is proper environmental impact assessment. Then they should be given licences to operate. It will give us enough refined products, take care of unemployment, boost local economy and reduce crime in our creeks.”

However, the National Publicity Secretary of the Yoruba socio-political organization, Afenifere, Yinka Odumakin, said Nigeria was facing a huge economic crisis, describing the change mantra of the APC as deceptive.

Speaking on the fuel crisis, Odumakin said, “I will not condemn the President as a person. I would rather indict those around him who have been lying to Nigerians that there will be miracles overnight, and that every of our problems would disappear.

“They said he would do this and that, promising impossible things during electioneering in the name of the President. Anybody who was sober enough would know that there is big crisis in Nigeria because over the years, we have relied on just one product, which is oil.”

Advising government on the way out of the problem, he said, “This lazy culture of governors going to Abuja to share money every month can no longer work. Let every state start looking at its resources; that is the only way out. But we cannot do that without discarding the national constitution, which says that everything belongs to the Federal Government.”

Some citizens, who spoke to our correspondent from across the country, also shared the frustrations of motorists and other fuel users in their various states. Also, on social media platforms, Nigerians have been blaming Buhari and fuel marketers for the ongoing scarcity.

Ismael Ibrahim, a resident of Sokoto State, said a litre of petrol sells for about N140 in the state, adding that its residents have solely put the blame on President Buhari and the marketers

Read More

50 French firms to visit Nigeria next week

A delegation of 50 heads of French companies are expected to visit Nigeria next week to explore business opportunities and establish bilateral links in the country, the French Embassy said on Friday.
A statement by the First Counsellor, Political Affairs and Communication, Embassy of France, Georges Vanin, said the business delegation was the first of its kind from France to any African country.
The statement said the delegation was organised by the Movement of the Enterprises of France, France’s leading network of entrepreneurs and the largest employer federation with 800,000 member firms.
According to it, the French companies on the delegation include those in the building, transportation, environment, energy and sustainable cities sectors.
“The largest economy and the largest population on the continent, the middle class is emerging in Nigeria, which demand new infrastructural facilities and equipment, but also in services and leisure,” the statement read.
The statement quoted the President of MEDEF, Mr Pierre Gattaz, as saying Nigeria was a land of investments and development for French businesses.
“Nigeria is a land of investments and development for French companies. Africa is our new frontier. We are friends and have much to gain by building strong, confident and sustainable business relationships.
“Although, France has much to contribute to Africa, but Africa has so much to bring to France,” Gattaz said.
It added that Gattaz would lead the delegation of the 50 companies – small, medium or large – interested in the many opportunities of the Nigerian market.

Read More

UAE announces labour reforms to protect foreign workers

Some foreign workers sign one contract before they leave home and are compelled to renegotiate lower wages when they arrive 

The United Arab Emirates (UAE) has announced labour reforms to be enforced from January 1 that aim to curb abuse and protect the rights of millions of foreign workers.
"We want to close the door on those who trick the simple worker," Emirati Labour Minister Saqr Ghobash told a press conference in Abu Dhabi on Tuesday.

Indian ministers accused in scandal over child labour laws

The new measures, which will remove practices associated with a sponsorship system known as "kafala" will allow foreign workers to terminate their contract and change employer.
The kafala system not only regulates entry and residence, but also requires that workers seek permission from employers to change jobs.
Ghobash said that from January 2016, the UAE would take steps which, when completed, would get rid of "all the practices that were associated with kafala".
He said that under a new system, in which workers' contracts would be lodged with the labour ministry rather than with employers, who currently hold the documents, "involuntary labour" would be prevented.

"The worker cannot, under any circumstances, be made to, or otherwise be compelled, to remain in an employment relation," a ministry statement said.

Substitution of contracts
A reorganisation of labour contracts would also stop so-called "substitution", under which foreign workers sign one contract before they leave their home country and are compelled to renegotiate lower wages when they arrive in the Gulf.

Foreign workers do many of the hard and sometimes dangerous jobs in the region, from construction to the oil industry, transport and services. They account for nearly half of the roughly 50 million population of the six-nation Gulf Cooperation Council and about 4.5 million of the UAE's nine-million population.

Most blue-collar workers in Gulf states are hired on contracts from countries like Pakistan, India, Bangladesh and the Philippines, and many travel to the Middle East to escape poverty in their home countries.

In some Gulf states, the passports of guest workers are held by the sponsor for the duration of their contracts. Although this is banned in the UAE, the practice survives.
Asked if reforms on wider issues of labour abuse were in the pipeline, Ghobash said there was no country that stopped improving its labour situation, but the process took time.

Nicholas McGeehan, a UAE researcher at Human Rights Watch, said the move against contract substitution was "a huge improvement and something we would fully support and applaud" and it was "good to see" the UAE feeling the need to reform.

Read More

Dangote’s Tanzanian cement plant for inauguration Oct. 10 2015

Aliko Dangote

Dangote Cement has announced that it will inaugurate its new 3.0-million-metric-tonne per annum cement plant located in the Mtwara District of Tanzania on October 10, 2015.

The company said it would also hold the grounding breaking for the 25-hectare jetty land at Mgao village in the Mtwara District the same day.

The plant, according to a statement on Sunday, is part of the company’s Africa expansion strategy and is the fourth in the series after Ethiopia, Zambia and Cameroun, while the cement plants due for inauguration this year are located in Senegal and South Africa, with construction works ongoing in several other African countries.

The statement added, “The ground breaking for the Tanzanian plant was held on May 27, 2013 and within 24 months, the plant is ready for inauguration. With the plant in operation, Tanzania is on its way to become of the African countries that are self-sufficient in cement production.

ADVERTISEMENT

“Governments and distinguished Africans are commending the President of Dangote Group, Aliko Dangote, for his massive investments across Africa. The Nigerian Vice President, Prof. Yemi Osinbajo, speaking at the inauguration of the Zambian plant, lauded Aliko Dangote on his investment in several African countries, saying the Federal Government is proud of Dangote.

“Osinbajo, who described Aliko Dangote as an exceptional African entrepreneur, commended his phenomenal vision, entrepreneurship and commitment to the development of Africa and Africans.”

The Zambian President, Edgar Lungu, who also praised the business ingenuity of Dangote, was quoted as saying, “His business expansion across Africa is worthy of emulation by African businessmen in the task of continental development.”

The Cameroonian President, Paul Biya, at the inauguration of the 1.5 million metric tonnes per annum Dangote Cement grinding plant in Douala thanked Dangote for his massive investments in cement plants across Africa, adding that he had shown willingness to play a significant role in the industrialisation of the Cameroonian economy.

Read More

NNPC: Kachikwu redeploys GGM crude oil marketing

 

The restructuring at the Nigerian National Petroleum Corporation continued on Friday as the oil firm’s new Group Managing Director, Dr. Emmanuel Kachikwu, redeployed the Group General Manager, Crude Oil Marketing Division, Mr. Gbenga Komolafe.

Read More

CBN bans cash deposits into domiciliary accounts

The Central Bank of Nigeria has banned the payment of cash into domiciliary accounts in the country, TheCable reports.

In a circular released on Wednesday and signed by the Director of Trade and Exchange, CBN, Olakanmi Gbadamosi, the central bank said its action followed recent statements by individual banks suspending the payment of foreign currencies into domiciliary accounts.

Gbadamosi wrote, “The Central Bank of Nigeria has considered the recent statements by Deposit Money Banks concerning the large volume of foreign currencies in their vaults and the decision to stop accepting foreign currency cash deposits into customers’ domiciliary accounts as a welcome development.

“Therefore, in its continued efforts to stop illicit financial flows in the Nigerian banking system which aligns with the anti-money Laundering stance of the Federal Government, the CBN hereby prohibits from the date of this circular the acceptance of foreign currency cash deposits by DMBs.

“For foreign currency cash lodgements made prior to the date of this circular, the account holder has the option to either withdraw his or her foreign currency cash or the Naira equivalent. For the avoidance of doubt, only wire transfers to and from Domiciliary Accounts are henceforth permissible.

“The CBN advises individuals that wish to source foreign currency for eligible and legitimate purposes such as BTA, PTA medical, mortgage, school fees, goods etc. to do so through recognised channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for ‘visible’ transactions. By this circular, those who deposited foreign currencies into their accounts before the directive will now have to withdraw the cash as they are not going to be allowed to transfer the funds.”

Read More

CBN bans cash deposits into domiciliary accounts

The Central Bank of Nigeria has banned the payment of cash into domiciliary accounts in the country, TheCable reports.

In a circular released on Wednesday and signed by the Director of Trade and Exchange, CBN, Olakanmi Gbadamosi, the central bank said its action followed recent statements by individual banks suspending the payment of foreign currencies into domiciliary accounts.

Gbadamosi wrote, “The Central Bank of Nigeria has considered the recent statements by Deposit Money Banks concerning the large volume of foreign currencies in their vaults and the decision to stop accepting foreign currency cash deposits into customers’ domiciliary accounts as a welcome development.

“Therefore, in its continued efforts to stop illicit financial flows in the Nigerian banking system which aligns with the anti-money Laundering stance of the Federal Government, the CBN hereby prohibits from the date of this circular the acceptance of foreign currency cash deposits by DMBs.

“For foreign currency cash lodgements made prior to the date of this circular, the account holder has the option to either withdraw his or her foreign currency cash or the Naira equivalent. For the avoidance of doubt, only wire transfers to and from Domiciliary Accounts are henceforth permissible.

“The CBN advises individuals that wish to source foreign currency for eligible and legitimate purposes such as BTA, PTA medical, mortgage, school fees, goods etc. to do so through recognised channels with the use of Form ‘A’ for “invisible” and Form ‘M’ for ‘visible’ transactions. By this circular, those who deposited foreign currencies into their accounts before the directive will now have to withdraw the cash as they are not going to be allowed to transfer the funds.”

Read More

Why banks reject dollar deposits —CBN

The Central Bank of Nigeria (CBN) has said that commercial banks are turning down dollar deposits from their customers with domiciliary accounts to turn the tide against money speculators and launderers.

CBN’s Director of Monetary Policy, Mr. Moses Tule, who disclosed this on Tuesday, said the activities of currency speculators had been responsible for eroding the value of Naira.

Speaking on a Nigerian Television Authority (NTA) programme, Good Morning Nigeria, Tule said, “Though the banks acted on their own volition, the CBN supports the move because it is targeted against speculators and money launderers.”

According to him, the Naira had been subjected to devaluation consequent upon the actions of currency speculators, adding that many of them would buy dollars from bureau de change operators only to take same to commercial banks, thus depriving those in genuine need of forex for productive purposes the opportunity to get the needed money.

Tule, who said that the action of the banks did not contravene any law of the land, added that the Money Laundering (Prohibition) Act of 2011 empowered the banks to do everything in their powers to stop money laundering.

He noted that many of those who bombard the banks to deposit foreign currencies are not engaged in any business activities that could earn them such money within the country.

The CBN director said, “No country stands by and watch while speculators destroy its currency. It is normal practice across the world for banks to ask questions about the identification of those who deposit large sums of money as well as the source of such money. If the banks are saying they have so much foreign currencies in their vaults and are not willing to take more, there is nothing wrong with that.”

He assured Nigerians that the measure taken by the banks would not hurt the economy in any way, saying those who insisted that the refusal of the banks to take foreign currencies from depositors would impact negatively on the economy were being economical with the truth.

Tule said bureau de change operators were licensed to meet the needs of small scale users of foreign exchange but regretted that the operators were exceeding the provisions of their licences. He added that this was one of the reasons the apex bank directed them to always get the documentations of their patrons.      

Read More

Ekiti goes after workers who got excess pay

THE Ekiti State government has said it will retrieve all excess money received as salary by some of the workers in the state, adding that such workers might face prosecution.

As a prelude to this, the state governor, Mr Ayo Fayose, has set up a committee to review the outcome of a recent verification of workers on the state government’s payroll.

The verification, the government said, would help it fish out those being overpaid among others.

A statement by the Chief Press Secretary to the governor, Mr Idowu Adelusi, on Sunday, said “such indicted public servants are to refund the excess funds and may be prosecuted as well.”

Adelusi said the committee, to be headed by the deputy governor, Dr Kolapo Olusola, “is also to compile the list of dead workers still on payroll, those not due for study leave but were granted and still being paid, those who absconded from their duty posts, among others.”

The committee, the statement added, also has as members Secretary to the State Government, the Attorney General, the Commissioner for Finance, the Head of Service, the Accountant-General, the Auditor General and the Director in the Ministry of Budget.

The governor also directed that the 30 ad hoc staff of the firm that installed the payroll system for the state but who were converted to staff of the government be disengaged.

Among the anomalies discovered during the verification exercise were multiple salary payments, gaps in administrative oversight and duplicate in account numbers.

Others were one account number being shared by two members of staff which involved about 200 workers, irregular classification of pay groups, overpayment to micro-finance banks, among others.

Read More

Check Out What Is Now Happening To Our Naira

After weeks of poor performance, the Naira is bouncing back stronger. The United States dollar will further tumble against the naira at the parallel market this week as Deposit Money Banks continue to reject cash deposit of foreign currencies into customers’ domiciliary accounts.

The Naira had appreciated from 245 to 220 to a Dollar at the parallel market last week after banks started refusing to allow customers make cash deposits of foreign currency into their domiciliary accounts.

As at Monday morning in Lagos and Abuja, the Naira has appreciate further.

Foreign exchange dealers told PUNCH that the naira would likely appreciate further against the dollar at the black market this week.

A forex trader said, “We expect the naira to appreciate further this week at the parallel market. Banks have flooded the market with dollars and other foreign currencies. This is making the naira to appreciate. There is still a huge stock of dollars out there that the banks will be pushing into the parallel market this week.”

Banks had last week told customers they would no longer collect cash deposits into domiciliary accounts.

The CBN Governor, Godwin Emefiele, had two weeks ago said the naira was “appropriately priced” at its current level of 197 to the dollar on the interbank market, which is the official market.

Read More

IT firms, banks collaborate to curb e-payment fraud

The Central Bank of Nigeria, some commercial banks and commercial banks and Information Technology security firms, including Winigroup Limited, are currently exploring ways to jointly curb the menace of e-payment fraud

The Director, Banking and Payments System, CBN, Mr. DipoFatokun, said the CBN, along with relevant stakeholders, was exploring ways to establish an industry security operation centre and a risk information centre to consolidate its strength at reducing e-payments fraud to the barest minimum and enhancing trust in payment system.

He spoke at a total fraud protection forum organised in Lagos by Winigroup and Easy Solutions to sensitise the banking industry to the latest threats from hackers and electronic fraudsters.

He said WiniGroup had been a partner in the journey towards combating e-fraud and secure e-payments ecosystem.

A former deputy governor, Central Bank of Nigeria, Mr. TundeLemo, also at the event said for Nigeria’s electronic payment system to be secure from activities of cybercriminals, banks need to create a safe environment.

Lemo said, “They should also create a brand and fraud intelligence, safe browsing and device analytics,” he said.

He said, “I recall that fraud incidence on magnetic stripe was as much as 90 per cent until we introduced chip and pin. We can only fight fraud if we work together. Unless we have a forum for cross-fertilisation of ideas; we may not know what the other guys are doing.”

He urged the CBN to quickly galvanise banks to get better technology solutions to prevent electronic frauds and take up consumer protection.

The Director, Europe, Middle East and Africa for Easy Solutions, Mr. Jeremy Boorer, said Nigerian banks were up in a battle with e-fraudsters who were daily devising new strategies to steal financial information and money from bank accounts.

He called on the banks to deploy mobile fraud prevention, transaction risk monitoring, fraud intelligence, cloud and email authentication, safe browsing and clientless malware detection in their electronic channels.

Boorer said banks needed to take proactive mitigation measures for account takeover, Internet scams and malicious activities against their brands.

“Banks also need to have proactive malware detection and threat analytics on their customer devices, real-time transaction anomaly detection and risk evaluation, transparently deploy multi-layered security in their mobile banking application as well as stop email spoofing with fastest path to full DMARC application,” he added.

He also advised that they should provide transparent malware protection for all clients with zero friction, multi-factor authentication for web and cloud applications.

He warned about the existence of fake apps claiming to come from banks, saying once downloaded and financial information entered, including credit/debit cards details and personal identity numbers, “the bank customer money is gone as the fraudster will clone the cards or transfer monies immediately.”

The Vice Chairman, Winigroup, convener of the anti-fraud forum, Tim Akano, said fraudsters were using Bank Verification Number policy and other means to dupe bank customers.

Akon welcomed the CBN’s collaboration with experts within and outside the banking industry as well as law enforcements agencies under the Nigeria Electronic Fraud Forum to take advantage of new ideas including the ones expressed at the forum.

Read More

Chronic debtors owe Skye, Diamond, Sterling, Fidelity banks N70.51bn

Some Deposit Money Banks on Monday (today) commenced the publication of the names of their delinquent debtors, with 269 companies and a few individuals owing four of the banks N70.51bn.

Our correspondent gathered that the 269 firms and the few individuals, who owed Skye Bank Plc, Diamond Bank Plc, Sterling Bank Plc and Fidelity Bank Plc, had failed to service their loans for at least 365 days, thus forcing the banks to categorise them as non-performing loans.

Although the list includes firms with non-performing loans of 10 years and above, over 70 per cent of the debtors took the loans in the last three to four years.

More banks, it was learnt on Sunday, would publish the names of their debtors with non-performing loans during the week.

Going by the Central Bank of Nigeria’s directive, all the 19 banks as well as discount houses in the country are expected to publish the names of their delinquent debtors by August ending.

The publication of the debtors’ names follows the expiration of the July 31, 2015 deadline set by the CBN for the banks and discount houses to publish the names of debtor-companies, their subsidiaries and directors in national newspapers.

The central bank had on April 22 directed the financial institutions to commence the publication from August 1.

Banks and discount houses are to publish the names in at least three national newspapers on a quarterly basis.

In line with the directive, the banks gave the chronic debtors a three-month grace period, which expired on July 31.

While Skye Bank and Fidelity Bank had published their debtors’ lists on Monday (today), Sterling Bank and Diamond Bank were forced to withdraw their lists at the last minute on Sunday for further reviews after some of the debtors made efforts to renegotiate their loans at the weekend.

Fidelity Bank, which has about N6.66bn as the total published NPL figure, has a telecoms company, Starcomms, topping its list of delinquent debtors with approximately N3bn debt.

Other companies on the list are mostly energy, oil and gas companies. The total number of debtors on the list is 28.

Skye Bank, which had about N13.3bn in the NPLs, published 107 names of debtor companies and individuals.

Sterling Bank is owed about N3.37bn by workers’ unions, consultancy firms and other companies. The number of its delinquent debtors is 61.

Diamond Bank has about N47.17bn as the total NPL figure, with oil and gas companies, construction firms, state government investment companies and a state House of Assembly topping the list. The delinquent debtors’ list comprises 173 names.

The big names of popular Nigerians that characterised the 2009 list are so far absent on the current list. This is because the Asset Management Corporation of Nigeria has bought the debts.

However, AMCON has said it will publish the names of its debtors in line with the current CBN directive.

The PUNCH had reported on Sunday that over 19 banks and discount houses operating in the country would publish the names of more than 1,600 debtors this week or before the end of August deadline given by the CBN.

Officials of financial institutions had confirmed to our correspondents on Saturday that they would publish the names of the debtors this week in compliance with the CBN directive.

Also on Saturday, the CBN ruled out the possible extension of the deadline on its directive to the banks to publish the names of their debtors.

The Director, Corporate Communications Department, CBN, Mr. Ibrahim Mu’azu, said there was no extension to the deadline.

As of the weekend, the debtors were said to be rushing to banks to renegotiate their loans.

The Director, Banking Supervision, CBN, Mrs. ‘Tokunbo Martins, had said, in a circular dated April 22, 2015, “In order to ensure that the industry NPL ratio does not exceed the prudential limit of five per cent, and to improve the credit culture in the banking industry, banks and discount houses are directed to observe prudent credit underwriting and monitoring standards.”

The debtors are those whose accounts have been classified as lost and include persons, entities, directors, subsidiaries and other related parties, according to the central bank.

The bank had stated that delinquent debtors in the category described above would be blacklisted and “banned from participating in the Nigerian foreign exchange market and in the Nigerian government securities market.”

The PUNCH had on March 15, 2015 reported that the volume of the NPLs in the Nigerian banking industry was set to rise further on the back of the devaluation of the naira amid weak global crude oil prices.

Global rating agency, Fitch Ratings, had in February, after the second round of devaluation of the currency, predicted that the banks’ non-performing loans would rise above the CBN’s five per cent limit by the end of this year, but below 10 per cent.

It said this reflected high credit concentrations as well as emerging risks, particularly in the oil and gas, and power sectors, adding that banks were likely to report weaker profitability, asset quality and capital ratios.

In 2009, the Federal Government spent about N5tn to buy the NPLs from banks to save them from imminent collapse.

AMCON, the government agency created after the 2009 banking crisis, was the special purpose vehicle used by to acquire the NPLs from the banking sector.

Read More

Naira to rise further as banks reject dollars

The United States dollar will further tumble against the naira at the parallel market this week as Deposit Money Banks continue to reject cash deposit of foreign currencies into customers’ domiciliary accounts.

The naira had appreciated against the dollar from 245 to 220 at the parallel market last week after banks started denying their customers opportunity to make cash deposits of dollar, pound and euro into their domiciliary accounts.

Foreign exchange dealers told our correspondent on Sunday that the naira would likely appreciate further against the dollar at the black market this week.

A forex trader, who chose to speak under the condition of anonymity said, “We expect the naira to appreciate further this week at the parallel market.

“Banks have flooded the market with dollars and other foreign currencies. This is making the naira to appreciate. There is still a huge stock of dollars out there that the banks will be pushing into the parallel market this week.”

The Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, also noted that large amount of dollars in the market would make the naira to appreciate further at the parallel market this week.

Banks had last week told customers that they would no longer collect cash deposits into domiciliary accounts.

Fidelity Bank Plc, in an email to customers, said the policy came from the Central Bank of Nigeria and it was only a temporary measure to curb speculative activities.

Guaranty Trust Bank Plc also told customers about the development in an email statement.

“Banks no longer accept dollar cash due to large speculation on the currency,” the Chief Executive Officer, First City Monument Bank, Mr. Ladi Balogun, told a conference call last week

He said the lenders would continue to receive dollar transfers from other banks.

The Governor, Central Bank of Nigeria, Godwin Emefiele, had two weeks ago said the naira was “appropriately priced” at its current level of 197 to the dollar on the interbank market.

The local currency has lost around 15 per cent against the dollar over the past year, with an official devaluation in November and a de facto one in February.

The naira had weakened on the parallel market, falling as low as 245, on persistent dollar shortages after the central bank last month limited importers’ access to dollars in order to save the external reserves.

Early last month, the central bank fixed the spread at which bureaux de change operators could sell dollars to individuals, and also limited the amount that bank customers would spend using their debits cards abroad.

Although the restrictions have angered investors and frustrated companies that need dollars for imports, Emefiele has rejected the idea of loosening the curbs, saying the central bank could not adopt an “indeterminate policy” of currency depreciation.

Global ratings agency, Standards & Poor’s, had also said Nigeria would have to devalue its currency at some stage, possibly by more than 15 per cent, though it saw the adjustments as likely to be gradual.

FCMB’s Balogun had also noted that the parallel market was beginning to see a reversal in the naira’s weakness as banks stopped taking dollar deposits.

Read More

EFCC to arraign Ibru for alleged N1bn fraud

The Economic and Financial Crimes Commission has filed 11 counts of fraud against the former Chairman of Ikeja Hotels Plc, Mr. Goodie Ibru, for allegedly defrauding the hotel to the tune of N1bn.

A copy of the charge sheet obtained by our correspondent on Sunday, was filed before Justice Raliatu Adebiyi of the Lagos Division of the Lagos State High Court.

Ibru was charged alongside three companies – Associated Ventures International Limited, IHL Services Limited and Clearview Investment Limited.

The EFCC, in one of the counts, alleged that Ibru and his co-suspects conspired amongst themselves to steal a sum of N867,700,990.00 being the profit due to Ikeja Hotels Plc, adding that the suspects received the stolen sum through Starwood Limited, the managers of Sheraton Hotels, Ikeja. The alleged offence was said to be committed between January and December 2010

In another of the counts, the EFCC alleged that the suspects, had between June and October 2010, with an intent to defraud, fraudulently converted to their personal use, a sum of N55,102,485.50 received through Starwood Limited as profit due to the hotel.

The EFCC further alleged that the suspects, with an intent to defraud, fraudulently converted to their personal use, various sums received through Starwood Limited as profit due to the hotel.

EFCC alleged that the defendants also, with an intent to defraud, fraudulently converted to their personal use a sum of N27, 508,766.25 sometime in February 2010 – property of Ikeja Hotels Plc which sum was said to have been received through Clearview Investment Limited as proceeds of the sale of Ikeja Hotels property.

According to the anti-graft commission, these alleged offences committed by the suspects are contrary to sections 516, 370(7)(b) and 9 and 278(1)(b) and 285(8) and 9(b) 0f the Criminal Code Cap C. 17, Vol. 11, Laws of Lagos State of Nigeria, 2011.

No date has been fixed for the arraignment of the suspects.

Read More

Court halts planned Ladipo market demolition

A Lagos State High Court in Ikeja has ordered the authorities of Mushin Local Government Area in Lagos to suspend their plan to demolish parts of the popular auto spare parts market, Ladipo, for the purpose of re-development.

Justice Iyabo Akinkugbe, who made the order on Friday, said it would only be in the interest of justice that the LGA put its demolition plan on hold pending the determination of a suit challenging the project.

Some auto spare parts dealers, who own shops at the market, had headed for court claiming that the the planned demolition would disturb the peaceful  and quiet enjoyment of their tenancy at the market.

The marketers, through their lawyer, Richard Nwankwo, sought an order of perpetual injunction restraining the LGA and its agents from going ahead with the demolition and ejection plan, which they claimed was coming at a time when their rents had not lapsed.

On Friday, Nwankwo argued an ex parte application, urging the court to make an order for the parties to maintain status quo pending when the issues in the main suit would be determined.

Nwanko told the court that ever since the first invasion of the market by agents of the defendant at about 4.30am on June 30, 2015, the auto spare parts dealers had been living under the apprehension that the defendant would eject them.

The lawyer alleged that in spite of the intervention of the Lagos State Commissioner of Police, who met with the parties on July 1 and ordered that peace should be maintained, the Executive Secretary of Mushin LGA, Mr. Jide Bello, had not relented on his threat  to eject the marketers.

Convincing the court to grant the application, Nwankwo argued that the LGA would not suffer any loss if the court stopped it from taking further steps in its demolition and ejection plan until a decision was made by the court in the main suit.

After hearing the lawyer’s argument, the judge said she was convinced that it would serve the interest of justice for  the parties to maintain status quo pending the determination of the main suit and so ordered.

The judge subsequently adjourned till August 4, 2015 to hear the main application.

The plaintiffs in the suit are Nnamdi Chukwuka, Franco Offai, Vitus Okoyeagu, Felix Okafor, Peter Benson and Richard Olisakwe.

Others are Godwin Onyeka, Emeka Ikeh, Romanus Ezimora and Darlington Ugochukwu.

In the affidavit filed in support of their application, they alleged that without a prior notice, agents of the Mushin Local Government Area had invaded the market, and with the help of “hoodlums and rented armed policemen” commenced demolition of their shops.

They claimed that the respondent, after the invasion, had continued to threaten them with ejection and demolition.

Chukwuka, who deposed to the affidavit, said the demolition and ejection threat by Bello was coming while the plaintiffs had subsisting rents.

The deponent, who accused Bello of hiding under “the guise of redeveloping the market,” said, “The respondent also deployed some equipment in the market and removed roofs of the applicants’ shops.

“The hoodlums went on a looting spree, carting away some of our expensive goods, cash and other valuables.”

Read More