My Blog

Category: Business

  • $87.8m Crypto Investment Theft: Police arraign 2 hackers

    The Police will Monday, July 24, arraign two alleged hackers, Abayomi Oluwasesan and Onifade Adeniyi, who were accused of stealing over $ 87.8 million from the account of a global crypto investment company.

    The Inspector General of Police, in the charge, marked: FHC/ABJ/CR/289/2023, alleged the defendants gained access to the account of Afriq Arbitrage Systems (AAS) in October 2022 and diverted all the funds in it. 

    According to the Police, the defendants used the stolen funds to acquire exotic cars and houses. 

    The prosecution disclosed that the defendants, who escaped from the country, were subsequently apprehended with the help of Interpol. 

    According to the police, aside from the 1st defendant, Oluwasesan, who hitherto worked with the company, other persons that were involved in the fraud, are presently at large.

    Meanwhile, though the defendants were initially scheduled to take their plea on Wednesday, however, the matter could not proceed owing to the absence of any lawyer to represent them.

    When the matter was called up, police lawyer, Mr Wisdom Madaki, told the court that the duo were brought from the Force Criminal Investigation Department, FCID for the arraignment. 

    He told the court that the defendants were duly served with a copy of the charge against them. 

    However, the defendants, who had already mounted the dock, blamed the absence of their lawyer in court on the failure of police to notify them that the case would come up. 

    Owing to the development, trial Justice Binta Nyako, after she confirmed that there was no proof of service of the trial notice on the defendants or their counsel, deferred their planned arraignment till next Monday. 

    Specifically, some counts in the charge against the defendants, read: “That you Abayomi Oluwasesan ‘m’ of No 1 Nnamdi Azikiwe Golf Estate Lagos and Onifade Adeniyi ‘m’ of No. 5 Unity Close, on or before October 2022, within the jurisdiction of this Honourable Court did conspire among yourselves to commit a felony, to wit: Computer-related fraud and thereby committed an oftence contrary to Section 27 and punishable under Section 14 of the Cybercrime (Prohibition, Prevention ETC Act) 2015.

    “That you Abayomi Oluwasesan ‘m’ and Onifade Adeniyi ‘m’ of the same place, date and time in the aforesaid judicial division did convert the sum of $87,883,904 050 property of Afriq Arbitrage Company to yourselves, property derived directly from proceed of theft with the aim of concealing or disguising the Illicit origin or source of the money and thereby committed an offence contrary to Section 18(1) of the Money a (Prohibition) Act LFN. 

    “That you Abayomi Oluwasesan ‘m’ and Onifade Adeniyi ‘m’ of the same place, date and time in the aforesaid judicial division, knowingly and without authority, fraudulently changed the ownership credentials of the Company Chief Executive Officer of Afriq Arbitrage Company and gained access to millions of the subscribers’ investments and diverted the sum of $87,883,904 USD to yourselves and thereby committed an offence punishable under Section 14 of Cyber Crimes (Prohibition, Prevention ETC) Act 2015.”

  • Chinese Yuan weakens against dollar with 7.1486 central parity rate

    On Wednesday, the Chinese currency renminbi, commonly known as the yuan, experienced a slight weakening against the US dollar, with the central parity rate set at 7.1486 by the China Foreign Exchange Trade System. This represents a decline of 33 pips compared to the previous rate.

    In the spot foreign exchange market of China, the yuan is permitted to fluctuate by a maximum of two percent from the central parity rate on each trading day. This controlled flexibility allows for some level of market-driven movement while still maintaining stability and preventing abrupt or drastic fluctuations in the currency’s value.

    The central parity rate of the yuan against the dollar is calculated based on a weighted average of prices provided by market makers before the interbank market opens each business day. Market makers are financial institutions that actively participate in buying and selling foreign currencies, contributing to the establishment of a benchmark rate that sets the tone for currency trading activities throughout the day.

    The People’s Bank of China, as the country’s central bank, manages the exchange rate policy and closely monitors the currency’s movements. The central parity rate serves as a reference point for the yuan’s value against the US dollar and is an essential tool in guiding the currency’s overall stability.

    Maintaining a stable exchange rate is a crucial aspect of China’s economic policies, as it helps bolster investor confidence, fosters international trade relations, and encourages foreign investments. However, the central bank also recognizes the importance of allowing the currency to reflect market demand and supply forces to some extent, hence the allowance for a controlled fluctuation of the yuan’s value.

    In recent years, the yuan’s exchange rate has garnered significant attention on the global stage, particularly amid trade tensions and economic developments between China and the United States.

    In the ever-evolving landscape of global economics, these incremental changes warrant careful observation to assess their potential impacts on international trade and financial markets.

  • CBN, CBE collaborate to establish Nigeria-Egypt FinTech Bridge

    The Central Bank of Nigeria (CBN) and the Central Bank of Egypt (CBE) have signed a memorandum of understanding (MOU) to establish a Nigeria-Egypt FinTech Bridge.

    The signing ceremony, which took place at the Seamless North Africa 2023 conference at the Egypt International Exhibition Center, Cairo, on July 17 – 18, 2023, comes after a series of engagements on issues around payment systems, financial technology, and financial inclusion in Africa.

    Speaking at the event, the CBN Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad, who signed on behalf of the CBN, said that the Bank was extremely excited by the partnership with the Central Bank of Egypt, which followed several months of engagement on payments, fintech and financial inclusion.

    “We look forward to cultivating an innovative space for fintech startups and entrepreneurs in Egypt and Nigeria to accelerate financial inclusion, deepen our payment systems and drive economic growth across the African Continent,” Mrs. Ahmad declared.

    Also speaking, the Deputy Governor of the Bank of Egypt, Mr. Rami Aboulnaga, commended the MOU and expressed optimism that the partnership would yield the desired expectation.

    The groundbreaking partnership between the apex banks of the two largest economies in Africa encompasses a broad range of collaborative initiatives, including joint regulatory innovation projects, coordinated licensing and supervisory frameworks, information sharing, fintech cross referrals and talent development.

    The conference was hosted by the Central Bank of Egypt and had in attendance over 4,000 policymakers, payment service providers, financial institutions and technology startups from Egypt, Nigeria and across the African continent.

  • FG spends N2.8trn on electricity subsidy -NERC

    The Federal Government has spent about N2.8 trillion subsidizing electricity in the last seven years, the Nigerian Electricity Regulatory Commission (NERC) has said.

    The commission’s report for the month of July 2023 indicates N57 billion was spent subsidizing electricity between January and April this year.

    NERC notes that the amount would have been higher but for the Service-Based Tariff scheme.

    The NERC, in an attempt to justify a hike in tariff, claimed that past hikes in electricity tariffs by the DisCos saved the Government from paying an additional N1 trillion in subsidies to power firms annually.

    The July 2023 NERC report was titled, ‘Overview of the Nigeria Electricity Supply Industry.’

    Providing an update the commission stated that between January 2020 and January 2023, the tariff increased from 55 percent of cost recovery to 94 percent.

    It added that between January and April this year, subsidies on electricity gulped N57 billion, adding that the Service-Based Tariff scheme helped in reducing the amount spent by the government on power subsidies.

    “Annual subsidy reduced from N528 billion in 2019 to N144 billion in 2022. Subsidy in 2023 year-to-date (January to April 2023) stood at N57 billion.

    “Service-Based Tariff was instrumental to the reduction of tariff subsidy. The financial burden of tariff subsidies between 2015 and 2022 stood at NGN2.8 trillion,” the NERC stated.

    The yearly hikes in power tariffs by the Federal Government (FG) through the NERC have been targeted at ending subsidies on electricity.

    According to the report, DisCos stated that their reasons for the rate review were premised on factors affecting the quality of service, operations, and sustainability of the companies.

  • Metre customers before increasing tariff, expert tells DisCos 

    The Convener of PowerUp Nigeria, Mr. Adetayo Adegbenle has called for the suspension of the planned tariff increase until consumers are fully metred.

    Adegbenle, who gave the advice in an interview in Lagos, urged the Distribution Companies (Discos) to meet up to 70 percent metering gap within their network before contemplating tariff increase.

    The DisCos are seeking the approval of the Nigeria Electricity Regulatory Commission before their planned upward review of tariff.

    Adegbenle said all previous tariff reviews have never met its expectations despite all the promises on paper, made by the Discos and Nigerian Electricity Regulatory Commission (NERC).

    “Therefore, all tariff reviews should be suspended until all DisCos meet up to 70 percent metering, and DisCos can increase collections by 50 percent of their present ability.

    “They also need to meet up with a practical target of reducing their Aggregate Technical and Commercial Losses (ATC&C) by up to 60 percent. We must note that this is the first time the Multi-Year Tariff Order (MYTO) regulation is being followed by the Discos, by first applying for the tariff review.

    He urged NERC to call up other conditions for tariff review, considering the present economic situation.

    He said the recent removal of fuel subsidies and floating of the Naira has also impacted Nigerians.

    On the federal government’s intention to commence importation of pre-paid, Adegbenle condemned the proposed impending displacement of local meter manufacturers.

    According to him, its process was anti-local industry; it will not help our economy and would only help other nations build theirs at the expense of Nigerians, for a loan we will still have to pay.

    “This FG’s intention is against the backward integration policy that we have been pursuing as a nation. Well, we will not call it “impending displacement” per se, but the move would not help local meter manufacturers.

    “There is no way they will be able to compete with that bidding condition. They will have to come up with a bid security of $500,000, and a cash flow of over $5 million. We have not patronised them enough to expect that volume of transaction with them,” he advised.

    He said one of the manufacturers was complaining of owing over $20 million to set up his factory, this manufacturer already even said he was ready to supply meters, all he needs is a payment guarantee from CBN.

    On the alleged N37 billion investment project in free meter procurement and installation, the expert advised President Bola Tinubu to set up a committee to look into the allegation.

    He said: “You can imagine we have N37 billion somewhere and we are still taking a World Bank loan.

  • Nigeria’s equity market gains N204bn

    Nigeria’s equity market gains N204bn

    Domestic equities on Monday opened the week on a positive note gaining N204 billion, with a market capitalisation of listed equities appreciating by 0.59 percent to N34.273 trillion from the N34.069 trillion reported on Friday.

    The NGX All Share Index also went up by 373.62 basis points to 62943.35 points from 62569.73 points reported on Friday.

    A breakdown of investment for the day showed that Daar Communication, Unilever Nigeria Plc, and Fidelity Bank led the gainers’ table during the day in percentage terms, gaining 10 percent each to close at N0.33 per share, N15.95 and N7.37 per share respectively. Sterling Bank followed with a gain of 9.97 percent to close at N3.42 per unit, JohnHolt recorded an increase of 9.94 percent to close at N1.99 per unit.

    On the contrary, PZ Cusson, Veritas Kapital, Union Bank of Nigeria, and SFS REIT topped the losers’ chart on Monday in percentage terms with 10 percent to close at N16.20 per unit, N0.27, N6.30, and N69.30 per share to N0.27 per share, N6.30 and N69.30 per share respectively.

    FTNCocoa trailed with a drop of 9.93 percent to close at N2.54 per unit.

    Volume of shares increased during the day as investors traded 710.018 million shares valued at N13.829 billion in 8979 deals against 600.487 million shares worth N8.827 billion exchanged hands the previous day in 9554 deals.

    Transactions in the shares of Sterling Bank led market activities during the day with an account of 65.948 million shares valued at N216.572 million, Transnational Corporation of Nigeria followed with an account of 62.200 million shares valued, Unity Bank traded 59.665 million shares worth N79.965 million, AccessCorp exchanged 51.054 million shares valued at N828.767 million while Universal insurance traded 49.806 million shares worth N12.338 million.

  • Bad Loans: CBN warns of sanctions against bank directors

    Bad Loans: CBN warns of sanctions against bank directors

    The Central Bank of Nigeria (CBN) has said it would sanction any bank directors with loans that remain non-performing for more than 12 months.

    The warning is contained in a new corporate governance guideline for commercial banks, financial holding Companies (FHCs), merchant banks, and non-interest and payment service banks signed by Director, financial policy and regulation in the CBN, Chibuzo Efobi.

    The new guidelines which are expected to take effect on August 1, 2023, will supersede all previous codes, circulars, and related directives on corporate governance issued by the CBN.

    The apex stated that any director whose credit facility or that of his/her related interests remains non-performing in the banking subsidiary of an FHC, for more than one year, shall cease to be on the Board of the Financial Holding Company (FHC).

    “Shall be blacklisted from sitting on the Board of such a banking subsidiary or that of any other financial institution under the purview of the CBN,” the guidelines stated.

    The CBN said no loan/advance and interest thereon to a director of an FHC by the banking subsidiary shall be written-off without its prior approval.

    “A subsidiary of the FHC, which renders services to the FHC may extend similar services to other entities within the Group that so desire, on the same terms and conditions, the guidelines stated.

    It says all intra-group transactions shall be conducted at arm’s length and in compliance with the extant laws and regulations guiding the operations of the entities

    The apex bank’s guideline also prescribed that all services between an FHC and its subsidiaries will be guided by Service Level Agreements (SLAs) and/or shared services arrangements in line with the CBN Guidelines for Shared Services Arrangements for Banks and Other Financial Institutions.

    Under protection of shareholders’ rights, the guidelines stated that except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one FHC.

    It says except with the prior written approval of the CBN, no FHC or any of its director, shareholder or agent shall enter into an agreement which results in: a change in the control of the FHC, the transfer of shareholding of 5 per cent and above in the FHC; and/or an increase in shareholding to 5 per cent or more in the FHC.

    The CBN said its prior approval and no objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five per cent (5 per cent) and above.

    “Banks and financial holding companies are invited to note the responsibilities imposed on their boards by these guidelines and especially on the executive compliance officers (where applicable)”, the circular stated.

    The Financial Reporting Council (FRC) of Nigeria in 2019 issued the Nigerian Code of Corporate Governance (hereinafter referred to as “NCCG 2018”) as the single Corporate Governance Code for the country.

    The guidelines stated that the government’s direct and indirect equity holding in a bank shall not be more than ten percent (10 percent), which shall be divested to private investors within a maximum period of five years from the date of investment.

    Get our approval before acquiring a 5% stake in any bank, CBN tells investors

    The Central Bank of Nigeria (CBN) has said that any investors planning to acquire a five percent stake in any bank operating in the country will need to obtain prior approval and no objection from the apex bank.

    The new Corporate Governance Guidelines for Commercial, Merchant, Non-Interest, and Payment Service Banks released by CBN over the weekend, the apex bank said that no individual or group of individuals or corporate entities shall own controlling interest in more than one bank.

    Under the protection of shareholder’s rights provisions, the new regulations attempt to address recent events in the capital market affecting some commercial banks in the country.

    The guidelines specifically said, “CBN’s prior approval and No Objection shall be sought and obtained before any acquisition of shares of a bank (including through the capital market), that would result in equity holding of five percent and above, by any investor.”

    “Except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one bank,”

    The new regulation also states that where the apex bank has an objection to any of the acquisition, the notice of the objection must be communicated to the bank. The bank then has 48 hours to notify.

    “Where the CBN has an objection on any acquisition as stated in Section 20.2 notice of the objection shall be communicated to the bank, and the bank shall notify such investor(s) within forty-eight (48) hours.”

    For government ownership in the bank the protection of shareholders rights regulation also said “Government’s direct and indirect equity holding in a bank shall not be more than ten per cent (10%), which shall be divested to private investors within a maximum period of five years from the date of investment,” it added.

    For existing investments above five years, the central bank said the bank shall within two years from the effective date of this Guideline, comply with the provision.”

    The central bank regulation also addresses Financial Holding Companies (FHC), and activities around mergers and acquisitions.

    According to the regulation, no director or shareholder can change control of a bank without the prior approval of the bank. It also does not allow the transfer of 5 per cent and above of a bank to any shareholder without the prior approval of the CBN.

    No FHC or any of its directors, shareholders, or agents shall enter into an agreement that results in a change of control of the holding.

    It said CBN’s prior approval and no objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five percent and above.

  • Vehicle importation declines due to exchange rate unification, says ANLCA

    The Association of Nigerian Licensed Customs Agents (ANLCA) on Saturday said that the floating of the nation’s currency has caused a drop in vehicle importation in the nation’s ports.

    The agents also said that vehicles imported into the country were trapped at the ports due to the rise in exchange rate which pushed up duties on vehicles.

    ANLCA Taskforce Chairman, Alhaji Rilwan Amuni, noted that the floating of the naira was inevitable because the government wanted a uniform rate.

    Amuni, however, urged the government to look into other levies paid at the ports.

    He told said that the challenges faced by customs agents at the ports were enormous because of the high dollar rate which hiked duties on vehicles to over 50 percent.

    “The job we used to do after the advent of the Vehicle Identification Number (VIN) in which we charged N1.4 million, is now like N2.2 million and this has resulted in vehicles being trapped in the ports.

    “Also, there has been a drop in importation because things are really biting hard,” he said.

    Amuni added that the development had affected goods already imported, noting that they had no choice but to clear at the current rate.

    He also urged the government to look into the levy placed on used goods, adding that they are proposing a dialogue with the Federal Government on ways to jettison this levy so that there would be a relief.

    “Some people are confusing the tax that was suspended recently with the issue of levy. It is not the levy that they removed, it’s the Import Adjustment Tax that was supposed to have started.

    “We are appealing to the government to remove the levy because what does a poor man derive when he buys a Corolla 2004 and pays duty and fine again? The only goods that are supposed to have a levy are luxury goods.

    “Maybe you are a big man and you want to ride a yacht or helicopter, that is what they are supposed to levy not on used goods,” he said.

    Also, ANLCA Secretary, TinCan chapter, Mr. Michael Imonitie, said goods were not being cleared at the port due to the challenge.

    Imonitie disclosed that out of 100 importers, only 20 were taking their goods out of the ports.

    According to him, this means that most goods will be incurring demurrage and overtime or even abandoned.

    “We all know that there is going to be a negative effect on the clearance of vehicles at the port.

    “Since the government announced the uniform exchange rate, the exchange rate has risen from N422.3 to N589.55 and now N770.88 which is the pure black market rate. The exchange rate of CBN is N756/N757, the government was supposed to have given us a notice of either 60 or 90 days before implementation.

    “This is because a lot of importers have opened their Form M at the old exchange rate. I have not seen any importer that have done any new importation. Most of the goods in the port are old stock.

    “This means that the end cost of goods will be high. If I am forced to pay the exchange rate twice what I have paid before it means that the end users will be the ones to suffer it,” he said.

    He said that the burden was on importers and being felt by the clearing agents, and the customs brokers, due to the jobs they do, and most of their clients do not have the difference to pay for the exchange rate,” he said.

  • CBN, UniAbuja collaborate to drive e-Naira adoption

    The Central Bank of Nigeria (CBN) has initiated a partnership with the University of Abuja to promote the adoption of the eNaira within tertiary institutions across the country. This collaboration aims to encourage the use of the eNaira as a digital currency within the university.

    As part of the plan, the CBN intends to work closely with third-party agents of the eNaira to launch a campaign that promotes its utilization specifically at the University of Abuja. Mr. Joseph Angaye, a Deputy Director at the CBN, stated that discussions are ongoing with various universities throughout Nigeria.

    The CBN team has already engaged with universities across all the geopolitical zones of the country, emphasizing the benefits of the eNaira and seeking partnerships to facilitate its adoption for financial transactions, particularly for revenue collection and payments.

    By partnering with the University of Abuja, the CBN aims to demonstrate the advantages of digital currencies and encourage students, staff, and the wider academic community to embrace the eNaira as a secure and efficient means of conducting financial transactions.

    This collaboration not only showcases the CBN’s commitment to digital transformation but also highlights the potential for the eNaira to revolutionize the way financial transactions are carried out within educational institutions and beyond.

    As discussions continue and partnerships are formed, the CBN remains focused on expanding the adoption of the eNaira nationwide, driving financial inclusion, and promoting a cashless economy in Nigeria.

    “I won’t say we are late in coming here, maybe we have probably saved the best for the last, eNaira has really evolved from the inauguration of the eNaira by the former president almost two years ago”.

    “We’ve achieved a number of milestones and there has been further development in terms of improving the functionality based on Feedback input we have been getting from various stakeholders we are coming here with a lot of experience in implementing it and as you know central bank digital currency is a new concept globally and Nigeria is one of the early adopters of central bank digital currency, and our own as you recall is called the eNaira, so the eNaira is central bank’s digital currency of Nigeria, he said.

    The Director explained that the eNaira will not replace the naira or the existing payment structure on ground saying it was introduced to deepen the payment system, “to address some challenges we saw in the payment system infrastructure and to complement what we already have.”

    Angaye said the e-naira was not introduced to be a competitor to what the banks are doing or other service providers but to provide a platform they can leverage to provide more effective service.

    “I am sure some of us have been experiencing some challenges from time to time using the payment system, but eNaira will help to promote financial inclusion and reduce congestion in the infrastructure so we are not brought down by downtime registering the number of interfaces that it takes to initiate and complete transaction and giving an opportunity to provide additional services that are not even available in the Nigeria system, like facilitating payment even when there’s no network,” he said.

    He added that the said e-Naira will reduce leakages when it comes to the collection and will reduce stress when it comes to issues of reconciliation of your accounting function.

    The Deputy Vice Chancellor of Uniabuja, Prof. Aisha Sani Maikudi, who represented the Vice Chancellor, assured that the university is ready to partner with the CBN to educate Nigerians.

    She stressed that the University has a robust virtual learning program that can help deliver mojo and can also help develop content education in ways that can improve the knowledge and confidence of Nigerians in the eNaira.