My Blog

Category: Business

  • Binance Reacts To $10 Billion Fine by Federal Govt

    Binance Reacts To $10 Billion Fine by Federal Govt

    Cryptocurrency exchange Binance Holdings Ltd has denied allegations made by the Nigerian government claiming it has been fined $10 billion for illegal operations contributing to the devaluation of the naira.

    The Nigerian government’s Special Adviser on Information and Strategy, Bayo Onanuga, said that the hefty fine was imposed on Binance as part of efforts to salvage the value of the national currency.

    In an interview with the BBC, Onanuga disclosed that the government’s actions were aimed at addressing the impact of Binance’s activities on the country’s economic stability.

    However, in response to these claims, a Binance official speaking to Peoples Gazette emphasized that while discussions were held with the Nigerian government to address concerns, no demand for a $10 billion fine was made.

    “We recently discussed ways to resolve issues with Nigeria, but we did not hear any demand for $10 billion,” stated the official.

    Furthermore, the official clarified that Binance is not currently engaged in negotiations with the Nigerian government to reinstate its services or release detained executives.

    Despite the ongoing dispute, the company said it remains committed to fostering positive relations with the Nigerian government and its citizens. However, it reiterates its firm stance against paying fines for personnel or services.

    “Our aim is to chart a good relationship with the government and the people of Nigeria. We want to see our services restored in Nigeria very soon, but we have no intention of paying fines for personnel or services,” the Binance official said.

  • CBN Unveils Stricter Guidelines for Bureau De Change Operations

    CBN Unveils Stricter Guidelines for Bureau De Change Operations

    In response to the ongoing economic challenges, the Central Bank of Nigeria (CBN) has unveiled comprehensive reforms affecting Bureau de Change (BDC) operations across the country.

    The new guidelines, outlined in a statement by the Financial Policy and Regulation Department, aim to address the economic crisis and enhance regulatory measures.

    1. Capital Requirements Restructured

    Under the revised guidelines, BDCs are now divided into two tiers, each with distinct capital requirements. Tier 1 BDCs must maintain a minimum capital of N2 billion, while Tier 2 BDCs face a capital threshold of N500 million. This represents a significant increase from the previous uniform capital requirement of N35 million.

    2. Ownership Restrictions for Financial Institutions

    The CBN circular explicitly prohibits banks, NGOs, government agencies, and other financial institutions from holding ownership stakes in BDCs, either directly or indirectly. This includes commercial banks, merchant banks, non-interest banks, payment service banks, as well as holding companies and payment service providers.

    3. Limited Activities for BDCs

    While BDCs are authorized for specific activities like buying and selling foreign currencies, issuing prepaid cards, and serving as cash points for money transfer operators, they are now restricted from accepting deposits, extending loans, trading in gold, or engaging in capital market activities.

    4. Forex Sourcing and Sale Guidelines

    BDCs are permitted to source forex from authorized channels, including dealers, travelers, hotels, and embassies. The sale of foreign currencies is regulated, with specified limits per customer annually for purposes such as travel, medical bills, and school fees. Additionally, BDCs are barred from engaging in offshore business and financing political activities.

    5. Emphasis on Electronic Transactions

    The CBN emphasizes a shift towards electronic transactions, mandating that at least 75 percent of sales be conducted through electronic transfers. For beneficiaries of Basic Travel Allowance (BTA) or Personal Travel Allowance (PTA), 25 percent of the foreign currency can be received in cash, with the remaining 75 percent electronically transferred to the customer’s Nigerian domiciliary account or prepaid card.

    6. Disclosure Requirements for High-Value Transactions

    Customers selling $10,000 or more to BDCs must disclose the source of the foreign exchange, complying with Anti-Money Laundering and Counter Financing of Terrorism regulations. Payments for cash purchases of forex below $500 may be made in cash, while transactions exceeding this limit are subject to electronic transfers.

  • FG Bans Cooking Gas Export to Tackle Soaring Prices

    FG Bans Cooking Gas Export to Tackle Soaring Prices

    In a move to stabilize domestic gas prices, the Nigerian government has imposed a ban on the exportation of cooking gas. 

    Minister of State, Petroleum Resources, Ekperikpe Ekpo, revealed this initiative at a workshop in Abuja, emphasizing that halting the export will increase the volume available in the domestic market, leading to a natural reduction in prices.

    His words: “We are interacting with critical stakeholders to ensure that there is no exportation of LPG.

    “All LPG produced within the country will have to be domesticated. And when this is done, the volume will increase and of course, the price will automatically crash.

    “I am in contact with the regulation, NMDPRA, we hold meetings almost on daily basis, and the producers such as Mobil, Chevron, and Shell. So there is that hope that things will turn around. We don’t need to make noise about it.”

  • FG Meets Dangote, BUA Over Rising Cement Prices

    FG Meets Dangote, BUA Over Rising Cement Prices

    The Federal Government is set to convene a meeting with key cement manufacturers, including Dangote, BUA, and Lafarge, to address the surging cost of cement. 

    Minister of Works, David Umahi, expressed concern over the significant price increase, which has jumped from N4,000 to a range of N8,000 to N10,000 per bag in recent weeks. 

    Umahi emphasized the need to investigate the substantial gap between ex-factory and market prices and explore solutions to address the challenges faced by cement manufacturers.

    Orji Uchenna Orji, media aide to the minister, said: “Worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers, the Honourable Minister of Works, His Excellency Sen Engr Nweze David Umahi CON, has summoned an urgent meeting of all cement manufacturers in Nigeria”.

    Orji quoted his principal as saying that the disparity between ex-factory price and market price is huge.

    “It is common knowledge that the manufacturers have their challenges, which we shall look into, but from our findings, the disparity between ex-factory price and the market price is wide,” Umahi was quoted as saying.

    “We therefore need to look into the situation and other issues with a view to finding a common front.”

  • Customs Auctions 462 Seized Vehicles For N556m

    Customs Auctions 462 Seized Vehicles For N556m

    The Nigeria Customs Service (NCS) has announced a successful outcome from its ongoing e-auction, raking in a substantial N556.74 million from the sale of 462 impounded vehicles.

    Dismissing rumours of impropriety, the NCS refuted claims by the National Association of Government Approved Freight Forwarders (NAGAFF) 100 Compliance team, which had accused the e-auction committee of engaging in a monumental fraud.

    According to Alhaji Tanko Ibrahim, the National Coordinator of the Compliance Team, the committee allegedly allotted over 300 impounded vehicles to a single individual at the remarkably low rate of N10,000 per vehicle.

    However, the NCS National Public Relations Officer, CSC Abdullahi Maiwada, countered these accusations in a statement, revealing that 13,605 applicants registered on the e-auction portal during five successful bidding windows. 

    Out of the 476 impounded vehicles uploaded, 462 found new owners, resulting in a revenue of N556,738,736 for the government.

    Maiwada strongly denied any fraudulent activities or underhand dealings within the e-auction process, emphasizing the NCS’s commitment to accountability and transparency. 

    He expressed concern over the serious allegations, asserting that the NCS operates within the confines of the law, adhering strictly to established guidelines for disposing of seized/overtime goods.

    In response to claims of allotting vehicles to a single individual, Maiwada stated, “This is entirely false, misguided, and spurious.” He also refuted the suggestion of a token sum of N10,000 collected as duties, emphasizing that such claims were misleading and a misrepresentation of facts.

    The NCS reaffirmed its dedication to maintaining a high level of integrity in the ongoing e-auction process, designed to provide a fair playing field for all Nigerians.

  • FG Reopens Abuja Store After Being Sealed Over Misleading Pricing

    FG Reopens Abuja Store After Being Sealed Over Misleading Pricing

    The Federal Competition and Consumer Protection Commission (FCCPC) has reopened Sahad Stores, a popular supermarket in Abuja, following its temporary closure on Friday, February 16. 

    The closure was prompted by the store’s alleged lack of transparency in pricing practices, as revealed by FCCPC investigations.

    The commission accused Sahad Stores of displaying lower prices on shelves while charging higher prices at checkout, leaving customers with no choice but to pay inflated amounts. 

    This was labelled as “violations involving misleading pricing and lack of transparency” by the FCCPC.

    In a statement issued by the acting Executive Vice Chairman, Adamu Abdullahi, on Saturday, it was confirmed that Sahad Stores had been reopened after a temporary closure. 

    The FCCPC conducted random checks and found that deceptive practices persisted, prompting the initial closure under Section 18(f) of its authority.

    The statement highlighted the reopening on February 16, 2024, at around 7 p.m., following a commitment from Sahad Stores to implement transparent pricing practices.

    The FCCPC emphasized the importance of businesses displaying transparent pricing information, especially during challenging economic times.

    The commission reiterated its commitment to combating exploitative or misleading practices and protecting consumer rights. 

    It urged all businesses to adhere to fair and transparent pricing practices, emphasizing potential penalties outlined in Section 115 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

    Providing background information, the FCCPC recalled its initial investigation on January 8, 2024, which revealed misleading pricing practices at Sahad Stores. 

    Following this, the commission issued a summons to the store’s staff to discuss corrective measures on February 12, 2024, but they failed to appear without justification, raising concerns about potential violations under Section 33(3) of the FCCPA.

  • Grant Thornton Nigeria Welcomes Tayo Adedokun to Fuel Optimism in Economic Growth

    Grant Thornton Nigeria Welcomes Tayo Adedokun to Fuel Optimism in Economic Growth

    Grant Thornton Nigeria, a key player in assurance, tax, and advisory services, is gearing up for robust economic growth, driven by optimism in the mid-market. 

    The firm is delighted to announce Mr. Tayo Adedokun as the new partner in the Advisory service line, reinforcing its commitment to providing high-quality transactional advisory services.

    The evolving economic landscape calls for responsible economic policies to attract domestic and foreign investments. Dr. Ngozi Ogwo, Managing Partner and CEO, emphasizes the firm’s dedication to nurturing a resilient business environment in Nigeria and across Africa.

    Dr. Ogwo highlighted the pivotal role Transactional Advisory Services play in upholding business transaction integrity. These services, encompassing financial evaluations, risk assessments, and compliance reviews, instill trust and confidence in the market.

    Having joined the firm in 2009, Tayo Adedokun’s transition to the Advisory service line in 2016 marked a turning point. His exceptional performance in valuation, due diligence, and corporate governance review engagements has significantly contributed to the firm’s success.

    Mr. Orji Okpechi, Head of Advisory Services, underscored the importance of TAS in economic development, citing its involvement in mergers, acquisitions, capital raising, restructuring, and strategic financial planning. These services, he noted, facilitate and support complex business transactions crucial for economic growth.

    Against the backdrop of regional and global economic policies, the role of TAS has become increasingly vital. 

    TAS stimulated investment and entrepreneurial initiatives, fostering confidence in investors and businesses. This, in turn, has led to increased investment inflow, business expansion, job creation, and overall economic prosperity.

    Grant Thornton Nigeria, part of the Grant Thornton International Ltd global network, operates with over 200 staff and 10 partners across three locations and four office.

    The firm’s commitment to seamlessly integrate into diverse business environments underscored its role in fostering economic resilience and growth.

  • Carbon Acquires Vella Finance to Boost SME Banking

    Carbon Acquires Vella Finance to Boost SME Banking

    Carbon, a Nigerian digital bank, has successfully acquired Vella Finance, a fintech startup specializing in services for Small and Medium Enterprises (SMEs).

    Vella Finance is set to transform into Carbon’s dedicated business banking product, aptly named Carbon Business.

    The move is driven by Carbon’s intention to harness Vella Finance’s AI-powered SME banking features, aiming to derive actionable insights for enhanced financial services.

    This acquisition, executed through Carbon’s parent company, One Credit Limited, includes the integration of founders and teams from Vella Finance into the Carbon ecosystem. 

    Tolu Adedayo, Co-founder and COO of Vella Finance, emphasized a seamless transition for the company’s 8,000 SME customers, who will now be served under the Carbon Business brand.

    Individual customers of Vella Finance are not left behind, as they have the option to upgrade to business accounts, ensuring a smooth transition for all users.

    Importantly, Carbon reassured that the acquisition will not compromise Vella Finance’s commitment to its customers; instead, it is expected to broaden their reach and enhance product development.

    Carbon’s strategic vision includes leveraging Vella Finance’s AI-powered transaction analysis specifically tailored for business customers. 

    This move comes as a culmination of a strong existing relationship between Carbon and Vella Finance, which has been bolstered by previous investment ties.

    Carbon viewed this acquisition as a key step in navigating and contributing to the evolving landscape of Nigerian startups this year.

  • We’ll Announce Ogunbanjo’s Successor Soon – Beta Glass

    We’ll Announce Ogunbanjo’s Successor Soon – Beta Glass

    Beta Glass, a subsidiary of Frigoglass Group, is set to disclose its board’s succession plan in the wake of the passing of Abimbola Ogunbanjo, its chairman.

    Ogunbanjo, former group chairman of the Nigerian Exchange Group Plc (NGX Group), tragically lost his life in a helicopter crash in the United States last Friday.

    The crash also claimed the lives of Herbert Wigwe, former group chief executive officer (GCEO) of Access Holdings Plc, along with his wife and son.

    In a corporate filing on Monday, Beta Glass affirmed that its board of directors would offer continued support during this transition period.

    “In due time Beta Glass and the Frigoglass Group will communicate the board’s succession plan. In the interim, the Company will continue to receive support from its Board of Directors,” the company stated.

    Gagik Apkarian, chairman of Frigoglass Group board and managing director of Tetrad Capital Partners, expressed deep sorrow over the loss, highlighting Ogunbanjo’s dedication during her eight-year tenure as Beta Glass chairman.

    “We extend our deepest condolences to Abi’s family, friends, and loved ones. Our thoughts and prayers are with them,” Apkarian added.

    Darren Bennett-Voci, Beta Glass’ CEO, emphasized Ogunbanjo’s lasting impact on the company, pledging to uphold his legacy by maintaining the values and vision he instilled.

    In addition to his role at Beta Glass, Ogunbanjo was actively involved in various professional organizations, including the Nigerian Chamber of Shipping and the Institute of Directors (IoD).

    Meanwhile, Access Holdings announced Bolaji Agbede as the successor to Wigwe as its GCEO on February 12, 2024.

  • Afdb Injects$540 Million into Nigeria’s Special Agro-Industrial Zones

    Afdb Injects$540 Million into Nigeria’s Special Agro-Industrial Zones

    Oyo, Cross River, and Imo, along with four other states and the Federal Capital Territory, are set to receive the initial disbursement of $540 million from the African Development Bank (AfDB).

    The funds aim to propel the development of Special Agro-Industrial Processing Zones (SAPZs) across the nation.

    Prof. Banji Oyelaran-Oyeyinka, Senior Special Adviser on Industrialization to AfDB President Akinwumi Adesina, revealed the development during a report presentation at the Presidential Villa in Abuja. 

    The SAPZs initiative seeks to transform Nigeria’s rural areas into hubs of economic prosperity.

    This news follows a promise made by Adesina to President Bola Tinubu, announcing a $520 million investment in the zones during a summit in Paris in June 2023. 

    The first phase is already underway, with Kaduna, Oyo, and Cross River States in the process of receiving disbursements.

    Oyelaran-Oyeyinka emphasized the importance of private-sector involvement, stating, “It is a government-enabled project but private-sector driven.” The first phase involves seven states: Cross River, Imo, Kaduna, Kano, Kwara, Ogun, Oyo, and the Federal Capital Territory.

    Vice President Kashim Shettima urged swift action, emphasizing the need for both the government and development partners to turn plans into reality. The three mentioned states will be the initial beneficiaries of phase one, with others to follow as documentation concludes.

    In a related report on the revitalization of the Ajaokuta Steel Company Limited, the United Nations Industrial Development Organisation proposed a comprehensive recovery plan. 

    This plan includes rehabilitating, modernizing, and expanding the integrated steel plant, transforming it into strategic business units.

    VP Shettima stressed the urgency for concrete actions, declaring, “We have passed the age of talking; we must walk the talk.” 

    He emphasized the necessity of realizing the vision of President Tinubu and cited examples of successful industrial transformations, urging determination and collective effort to bring positive change to Nigeria.