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Category: Business

  • CBN Reduces Banks’ Loan-To-Deposit Ratio To 50%

    CBN Reduces Banks’ Loan-To-Deposit Ratio To 50%

    The Central Bank of Nigeria (CBN) has reduced the Loan-to-deposit ratio (LDR) of banks to 50 per cent from 65 per cent.

    The apex bank made this known in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy”.

    The circular was signed by the Acting Director of the Banking Supervision Department, CBN, Adetona Adedeji.

    In a bid to increase lending to the economy especially Small and Medium Enterprises, SMEs, retail mortgage and consumer loans, the CBN on July 3, 2019, increased Banks’ LDR to 60 per cent from 57 per cent.

    The LDR was further raised to 65 per cent in January 20020.

    The reduction in the LDR according to analysts at Afrinvest Securities is to allow banks to comply with the Cash Reserve Ratio, CRR of 45 per cent.

    They said, “Today, the CBN in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy” announced a scale down of the Loans to Deposits Rate (LDR) by 15.0ppts to 50.0% – reversing previous threshold set by the past CBN administration in January 2020.

    “In our view, this downward review of LDR allows banks to comply with the 45.0% CRR directive, and eases off pressure on the lenders considering the restrictive nature of other CBN directives including the Net Open Position (NOP) ceiling of 20.0% short and 0.0% long. Thus, we believe this policy would enhance the ability of banks to sweat out assets without creating unnecessary risks.”

  • Naira Abuse Charge: Cubana Chief Priest pleads not guilty ….granted 10m bail

    Naira Abuse Charge: Cubana Chief Priest pleads not guilty ….granted 10m bail

    A businessman and socialite, Pascal Okechukwu, popularly known as Cubana Chief Priest, on Wednesday, pleaded not guilty to tampering and abusing the naira.

    Cubana Chief Priest was arraigned before Justice Kehinde Ogundare of the Federal High Court in Lagos on three counts bordering on abuse of naira by allegedly spraying and tampering with the nation’s currency at a social event, contrary to the provisions of the Central Bank Act of 2007.

    He was alleged to have sprayed the naira on February 13, 2024, at Eko Hotel.

    Cubana Chief Priest was said to have also committed the offences while dancing during a social event.
    He was said to have tampered with funds in the denomination of N500 notes issued by the CBN by spraying the same for two hours.

  • Nigeria’s Inflation Rate Hits 33.20% As Naira Rebounds 

    Nigeria’s Inflation Rate Hits 33.20% As Naira Rebounds 

    Nigeria’s inflation rate jumped to 33.20% in March 2024 compared to February 2024 headline inflation rate which was 31.70%.

    This was according to the National Bureau of Statistics (NBS)’s Consumer Price Index (CPI) report released on Monday.

    “Looking at the movement, the March 2024 headline inflation rate showed an increase of 1.50% points when compared to the February 2024 headline inflation rate,” said the NBS.

    “On a year-on-year basis, the headline inflation rate was 11.16% points higher compared to the rate recorded in March 2023, which was 22.04%.

    “On a month-on-month basis, the headline inflation rate in March 2024 was 3.02%, which was 0.10% lower than the rate recorded in February 2024 (3.12%). This means that in the month of March 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in February 2024.”

    The inflation report by the NBS followed the hike of Nigeria’s interest rate from 22.75% to 24.75% by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN).

    Interestingly, the March inflation rate was released at a time when measures by the apex bank to strenghten the naira against foreign exchange have seen some positive results.

    The naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,100/$1 now.

    As the naira rebounds, Nigerians expect significant reduction in the prices of food and basic commodities but this hasn’t been the case with cost of living still high.

  • Preparations in Full Swing for Korea-Africa Summit 2024

    Preparations in Full Swing for Korea-Africa Summit 2024

    Officials from African Diplomatic Missions and South Korean Ministry of Foreign Affairs Engage in Consultative Meetings Ahead of June, 2024 Summit in Seoul, Korea.

    As the summit draws near, officials from African diplomatic missions stationed in Korea and the South Korean Ministry of Foreign Affairs have intensified their collaborative efforts to ensure the success of the upcoming summit.

    Scheduled to take place in Seoul in June 2024, the summit aims to foster closer ties and explore avenues for mutually beneficial cooperation between South Korea and African nations.

    South Korea, known for its robust trading relationships with countries such as the US, China, Japan, Vietnam, Turkey, India, New Zealand, Peru, and the European Union, is now eyeing expansion into the African market.

    The Korea-Africa Summit presents a unique opportunity to solidify trade alliances with African countries, with both sides anticipating significant economic gains.

    Ambassador Dong-han Yang, representing South Korea, emphasized the summit’s goal of forging future-oriented partnerships with African counterparts. He underscored the importance of sharing development experiences to invigorate growth in participating countries, leveraging the dynamism of African economies.

    With the theme “The Future We Make Together: Shared Growth, Sustainability, and Solidarity,” the summit will delve into strategic collaborations between South Korea and African nations. Key areas of focus include addressing global challenges, sustainable energy, infrastructure development, human resource development (including Technical and Vocational Education and Training), science, technology, digital transformation, people-to-people exchanges, and peace and security initiatives.

    One of the significant announcements expected during the summit is South Korea’s intention to initiate Official Negotiations for the first-ever Free Trade Association (FTA) with African countries. Currently, South Korea boasts 21 FTAs with 27 countries, none of which are with African nations. This move aims to rectify the imbalance and facilitate direct trade between South Korea and Africa, potentially unlocking substantial economic opportunities for both sides.

    The summit also holds the promise of reversing the current trade imbalance, where Africa constitutes only one percent of Korean trade with the rest of the world. African countries stand to benefit from increased access to the Korean market, bypassing intermediaries such as Vietnam, China, and India.

    President Tinubu-led Federal Government is among the countries eagerly anticipating the economic windfall from the Korea-Africa Summit.

    The summit’s sideline meetings present a platform for high-level engagements, akin to the G20 summit held in Delhi, where the African Union was conferred with a permanent member title. President Tinubu had the opportunity to engage with leaders from the US, Germany, and South Korea, signaling the potential for significant diplomatic and economic gains.

    The Korea-Africa Summit in June 2024 is poised to be a landmark event, heralding a new chapter of cooperation and economic prosperity between South Korea and the African continent.

  • NITDA Warns Nigerians of QR Code Scams, Urges Vigilance

    NITDA Warns Nigerians of QR Code Scams, Urges Vigilance

    Nigeria’s National Information Technology Development Agency (NITDA) has issued a warning to citizens, urging heightened caution when scanning QR codes amidst a sharp rise in fraudulent activities perpetrated by scammers.

    In a recent advisory published on its official channels, NITDA sounded the alarm on the growing trend of scammers exploiting QR codes for nefarious purposes, ranging from phishing scams to payment fraud and identity theft.

    QR codes, those familiar black-and-white squares containing machine-readable information, have become a popular tool for quick access to URLs and other data via smartphone cameras.

    However, NITDA’s advisory serves as a stark reminder to users to exercise utmost vigilance before scanning QR codes, emphasizing the importance of preemptive measures to thwart cyber scams.

    According to NITDA, scammers employ sophisticated tactics to carry out their fraudulent activities through QR codes. These tactics include generating codes that lead unsuspecting users to malicious websites or applications, initiating unauthorized transactions, embedding malware or data-stealing scripts, and harvesting personal information for identity theft.

    To safeguard against these threats, NITDA recommends several preventive measures, including scrutinizing QR codes from unknown sources, verifying their legitimacy before scanning, and using trusted QR code scanning apps with built-in security features. Additionally, keeping devices updated with the latest antivirus software and security patches is advised to enhance protection against potential cyber threats.

    In light of predictions by the Cyber Security Experts Association of Nigeria regarding an anticipated surge in insider threats driven by the malicious use of artificial intelligence in 2024, NITDA underscores the critical importance of bolstering cybersecurity infrastructure.

    This entails investing in advanced security technologies and enhancing the capabilities of cybersecurity personnel to effectively combat evolving cyber threats.

  • Presidency Reacts As Air Peace Begins Lagos-London Flight Services

    Presidency Reacts As Air Peace Begins Lagos-London Flight Services

    The Presidency has reacted to the commencement of the Lagos-London flight services by Air Peace.

    The airline, in a post via its X page on Saturday, March 30, 2024, announced that it had commenced its Lagos-London flight services.

    The airline expressed delight at the milestone and appreciated everyone who contributed to the success of the launch.

    Reacting to the development in an X post, presidential aide, Dada Olusegun congratulated the airline owner, Allen Onyeama for accomplishing this milestone that will have a massive impact on the economy of Nigeria.

    The presidential aide also said the move would improve the standard of service enjoyed by Nigerians via this Nigeria-London route and make ticket prices competitive for Nigerians.

    He wrote: “Here is congratulating Chief Allen Onyeama for accomplishing this milestone that will have a massive impact on the economy of Nigeria and also improve the standard of service enjoyed by Nigerians via this Nigeria-London route.

    – Pressure off our forex

    – ⁠Competitive ticket prices for Nigerians.

    “We are not where we want to be, but surely, we are not where we used to be. Slowly but surely, we will get there.”

  • Zenith Bank Appoints First Female GMD/CEO

    Zenith Bank Appoints First Female GMD/CEO

    Zenith Bank has named Adaora Umeoji as its first female Group Managing Director/Chief Executive. 

    Her appointment, subject to the approval of the Central Bank of Nigeria, takes effect from June 1, 2024, according to the bank.

    “She takes over from Dr. Ebenezer Onyeagwu, whose five-year term expires on May 31, 2024, after a very successful tenure. Dame (Dr.) Adaora Umeoji is the first female GMD/CEO since the inception of the bank, and her appointment is consistent with the bank’s executive transition tradition, succession plan, and strategy of grooming leaders from within,” Zenith Bank said in a Tuesday statement.

    Before her latest appointment, Umeoji had been serving as the bank’s Deputy Managing Director since October 28, 2016. She has about 30 years of cognate banking experience with 26 of them spent working with Zenith Bank.

    “She is an alumnus of the prestigious Harvard Business School where she attended the Advanced Management Program (AMP) and an alumnus of Columbia Business School with a Certificate in the Global Banking Program,” the bank statement further read.

    “She holds a Bachelor’s Degree in Sociology from the University of Jos, a Bachelor’s Degree in Accounting, and a First-Class Honours in Law from Baze University, Abuja. She holds a Master of Laws from the University of Salford, United Kingdom, a Master in Business Administration (MBA) from the University of Calabar, and also has a doctorate in business administration from Apollos University, USA.”

  • Intel AI Programme Propels African DeepTech Ecosystem Forward

    Intel AI Programme Propels African DeepTech Ecosystem Forward

    In a collaborative effort to drive innovation and foster growth of Africa’s DeepTech ecosystem, Intel and AfriLabs celebrated the successful conclusion of the Intel AI Programme for African DeepTech Startups & Ecosystem Stakeholders.

    Held in Abuja from March 5th to 7th, 2024, the event served as a pivotal platform for stakeholders to explore the transformative potential of DeepTech across the continent.

    The event, organized by AfriLabs in collaboration with Intel, aimed to propel growth and innovation in Nigeria’s DeepTech ecosystem. Participants from diverse backgrounds including government officials, industry experts, startups, developers, and ecosystem stakeholders convened to explore the challenges, opportunities, and prospects of DeepTech in Africa.

    The event commenced with opening remarks from esteemed government officials and representatives from Intel and AfriLabs. Dr. Bienvenu Agbokponto Soglo, Director of Government Affairs Africa and IGA CTO Liaison at Intel set the stage with an insightful presentation on the socio-economic and policy implications of DeepTech in Africa. This was followed by a thought-provoking panel discussion featuring high-level representatives from the National Information Technology Development Agency (NITDA), the Nigerian Communications Commission (NCC), Intel, and other industry partners, moderated by Jennifer Okeke-Ojiudu, Senior Ecosystem Engagements Manager at AfriLabs. The session provided valuable insights into the challenges and opportunities facing the DeepTech ecosystem in Africa. Finally, day one culminated with a High-Level Roundtable Discussion on AI Policy, facilitated by Dr. Bienvenu Agbokponto Soglo of Intel, engaging the Director-General of the National Centre for Technology Management, other Government Officials and AI Ecosystem Stakeholders.

    Day two of the event focused on empowering startups, developers, and innovation hubs with the tools and resources needed to thrive in the AI landscape. Highlights included an introduction to the Intel® Liftoff for AI Startups Program, presentations on the Intel Developer Cloud and OneAPI initiative, and valuable lessons learned from industry experts. The day concluded with presentations from leading innovation hubs, further enriching the discourse on DeepTech entrepreneurship and innovation in Nigeria.

    The final day of the event centered on building vibrant startup communities and fostering collaboration among ecosystem stakeholders. Keynote addresses by notable figures such as Ajibola Odukoya, Chief Operating Officer at AfriLabs, and Dr. Kashifu Inuwa Abdullahi, Director-General of NITDA, set the tone for engaging discussions on the role of government in driving innovation in Africa. Presentations from various innovation hubs underscored the importance of community-building and collaboration in nurturing Africa’s burgeoning DeepTech ecosystem.

    Dr. Kashifu Inuwa Abdullahi, Director-General of NITDA, emphasized the importance of collaboration and shared vision in his address: “When I learned of the aims and objectives of this workshop, my enthusiasm for our ecosystem was truly ignited.

    At NITDA, we firmly believe that no single entity can navigate this landscape alone; collective effort is imperative. Our vision for Nigeria is one of digital empowerment, innovation-driven prosperity, and inclusive economic growth fostered by technology. The global AI race has commenced, and the nation’s leading it will shape the future. Africa, with its abundant talent and youthful population, is poised to play a significant role. In Nigeria, our path is clear: AI is our journey, our goals are defined, and our determination is unwavering.”

    Reflecting on the event’s success, Anna Ekeledo, Executive Director at AfriLabs, remarked, “This collaboration has provided a platform for meaningful engagement, knowledge-sharing, and collaboration, laying the groundwork for future innovation and growth across Africa.”

    As the curtains close on the Intel AI Programme for African DeepTech Startups & Ecosystem Stakeholders, the legacy of collaboration, innovation, and empowerment lives on. Looking ahead, the journey continues as Africa’s DeepTech community embarks on a path of growth, resilience, and boundless possibilities.

  • Binance Ceases Operations in Nigeria

    Binance Ceases Operations in Nigeria

     

    Binance, a global cryptocurrency exchange, has decided to exit the Nigerian market.

    Effective March 8, 8:00 a.m. UTC, Binance will automatically convert naira balances to USDT (Tether), a stablecoin pegged to the US dollar.

    The decision follows the cessation of support for naira deposits after 14:00 UTC today, with withdrawals set to terminate after March 8, 6:00 a.m. UTC. 

    The conversion rate stands at 1 USDT per 1,515.13 naira.

    Binance will delist all spot trading pairs involving the naira on March 7 at 3:00 a.m. UTC, automatically closing open spot orders for these pairs. 

    Additionally, services like Binance Convert, Binance P2P, Auto Invest, and Binance Pay will no longer support naira transactions.

    This move by Binance coincides with regulatory conflicts in Nigeria, as two executives were recently detained by the National Security Adviser’s office. 

    The company faces accusations of contributing to the depreciation of the naira, prompting its decision to withdraw from the Nigerian market.

  • Binance Boss Summoned Over Alleged Terrorism Financing

    Binance Boss Summoned Over Alleged Terrorism Financing

    CEO of Binance Holding Limited, Richard Teng has been summoned by the 
    House of Representatives Committee on Financial Crimes over the allegations of money laundering and financing of terrorism.

    The Chairman of the Committee, Ginger Onwusibe, issued a seven-day ultimatum to Binance Holdings bossto appear before the committee by March 4, 2024.

    Recall that the federal government banned the major online crypto platforms to avert the continuous manipulation of the forex market and illicit movement of funds, while Binance, an online cryptocurrency exchange, was accused of money laundering by the Central Bank of Nigeria.

    Onwusibe warned that the committee will take appropriate measures if the Binance head fails to heed the summon.

    He criticized Teng for his persistent refusal to attend despite several invitations, highlighting the company’s apparent disregard for the country’s established laws regarding business and financial operations.

    The committee, under the chairmanship of Onwusibe, sent a letter dated December 12, 2023, summoning the Managing Director of Binance for a hearing scheduled on December 18, 2023.

    Onwusibe emphasized the committee’s determination to combat financial crimes, citing the authority granted by the Nigerian Constitution to safeguard citizens from such offences, particularly those perpetrated by foreign entities.

    He highlighted the urgency of protecting the nation’s finances, especially amidst economic challenges like recession, and underscored the seriousness of allegations against Binance, including terrorism financing, money laundering, and tax evasion.

    Onwusibe stressed the need to preserve tax revenues and prevent channels for funding terrorism while prioritizing the protection of Nigerian investors from exploitative practices by firms like Binance.

    He insisted on accountability for tax payments and the establishment of physical offices for addressing consumer grievances, signalling an end to exploitation and a commitment to holding perpetrators accountable.

    Onwusibe said, “The constitution of the Federal Republic of Nigeria has empowered us to protect Nigerians from financial crimes, especially by foreign companies.

    “We also have to protect and defend the country’s finances, especially now that the country is nose-diving into recession. The allegations of terrorism financing, money laundering and tax evasion, amongst others, levelled against Binance, are damning enough.

    “At this material time, we need all the tax dollars and to block the leaks and channels to financing terror.

    “It is also our duty to do everything in our power to protect Nigerian investors from predatory firms, and no distraction and manipulation can stop us.

    “You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.“