My Blog

Category: Economy

  • JUST IN: EFCC arraigns Emefiele for printing N684m notes with N18.96bn

    JUST IN: EFCC arraigns Emefiele for printing N684m notes with N18.96bn

    The Economic and Financial Crimes Commission (EFCC), on Wednesday, arraigned a former Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele for approving the printing of N684.5 million at the rate of N18.96 billion.

    Emefiele was arraigned before Maryann Anenih, judge of a federal capital territory (FCT) high court, and pleaded not guilty to all the counts.

    In the four-count charge filed against him, the EFCC alleged that Emefiele disobeyed the direction of law with intent to cause injury to the public during his implementation of the naira swap policy of the administration of former President Muhammadu Buhari.

    The anti-graft agency also accused Emefiele of unlawfully approving the withdrawal of N124.8 billion from the Consolidated Revenue Fund of the Federation.

  • N1.8bn fraud: ICPC sues Abubakar Abdulahi Sambo, REA official

    N1.8bn fraud: ICPC sues Abubakar Abdulahi Sambo, REA official

    The Independent Corrupt Practices and Other Related Offences Commission (ICPC) will arraign a staff member of the Rural Electrification Agency (REA), Abubakar Sambo, (Abubakar Abdullahi Sambo ) for allegedly paying N1.835 billion for an unauthorized project supervision exercise.

    This is contained in ICPC’s charge sheet marked FHC/ABJ/ CR/209/2024 and filed on May 10, 2024, by Dr. Osuobeni Ekoi Akponimisingha, Assistant Chief Legal Officer, ICPC.

    The defendant is sued before the Federal High Court, Abuja, for allegedly paying N1.835 billion to some persons for a purported project supervision exercise without requisite approval.

    In the three-count charge, the anti-graft agency accused the defendant of allegedly using his password to access the Government Integrated Financial Management Information System platform of REA to finalize the payments.

    ICPC maintained that the development contravenes the Cybercrime Act, Public Enterprise Regulatory Commission Act, and Section 19 of the Corrupt Practices and Other Related Offences Act, 2000.

    The charges read,
    “That you ABUBAKAR ABDULLAHI SAMBO (M) sometime in March, 2023 оr thereabout while being a public officer I.e., Payment Finalizer on the Government Integrated Financial Management Information System platform of Rural Electrification Agency at Abuja within the jurisdiction of this Honourable Court, did finalize the payment of the total sum of N1,835,000,000.00 (One Billion, Eight Hundred and Thirty-Five Million Naira) in different tranches for the use of Henmentta Onomen Okojie, Asuni Adejoke Aminat, Usman Kwakwa, Laure Shehu Abdullahi, Emmanuel Pada Titus and Musa Umar Karaye for a purported project supervision exercise without requisite approval thereby contributing to the economic adversity of the Rural Electrification Agency and you thereby committed an offence contrary to and punishable under Section 68 of the Public Enterprise Regulatory Commission Act, CAP. P39, Laws of the Federation, 2004
    “That you ABUBAKAR ABDULLAHI SAMBO (M) sometime in March, 2023 or thereabout while being a public officer i.e, Payment Finalizer on the Government Integrated Financial Management System platform of Rural Electrification Agency at Abuja within the jurisdiction of this Honourable Court, did use your access password to access the Government Integrated Financial Management information System platform of Rural Electrification Agency and finalized the payment of the total sum of N1,835,000,000,00 (One Billion, Eight Hundred and Thirty-Five Million Naira) in different tranches for the use of Henrientta Onomen Okojie, Asuni Adejoke Aminat, Usman Kwakwa, Laure Shehu Abdullahi, Emmanuel Pada Titus and Musa Umar Karaye for a purported project supervision exercise without authority and you thereby committed an offence contrary to and punishable under Section 6(4) of the Cybercrimes (Prohibition, Prevention, Etc) Act, 2015.

    “That you ABUBAKAR ABDULLAHI SAMBO (M) sometime in March, 2023 or thereabout while being a public officer i.e., Payment Finalizer on the Government Integrated Financial Management Information System platform of Rural Electrification Agency at Abuja within the jurisdiction of this Honourable Court, did confer corrupt advantage on Henrrientta Onomen Okajle, Asuni Adejoke Aminat, Usman Kwakwa, Laure Shehu Abdullahi, Emmanuel Pada Titus and Musa Umar Karaye when you used your access password to access the Government Integrated Financial Management System platform of Rural Electrification Agency and finalized the payment of the total sum of N1,835,000,000.00 (One Billion, Eight Hundred and Thirty-Five Million Naira) in different tranches for the use of Henrientta Onomen Okojie, Asuni Adejake Aminat, Usman Kwakwa, Laure Shehu Abdullahi, Emmanuel Pada Titus and Musa Umar Karaye for a purported project supervision exercise without requisite approvals and you thereby committed an offence contrary to and punishable under Section 19 of the Corrupt Practices and Other Related Offences Act, 2000.”

  • Electricity tariff hike: NLC, TUC Picket NERC, DisCos offices today

    Electricity tariff hike: NLC, TUC Picket NERC, DisCos offices today

    If they keep their words, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) will today, picket the office of the Nigerian Electricity Regulatory Commission (NERC) and the distribution companies (DisCos)’s premises nationwide over the hike in electricity tariff.

    This is following a hike in the tariff for electricity consumers who enjoy at least 20 hours of daily power supply.

    “We write to inform you of the picketing action scheduled to take place in the offices of the NERC and Electricity Distribution companies (DISCOS) in all states, including the FCT,” the unions said in a joint statement by NLC’s Ag General Secretary Chris Uyot and his TUC counterpart Anka Hassan.

    “The action will jointly take place on Monday, 13th of May, 2024 nationwide simultaneously.

    “Therefore, the two Labour centres are directed to work together to carry out this important action.

    “While counting on your usual cooperation, kindly accept the assurances of our goodwill and highest regards.”

    Though the NERC had reviewed the tariff, the labour unions said they were picketing the agency’s office as well as the premises of distribution companies after a Sunday reversal deadline failed.

    The recent tariff hike for electricity consumers has continued to draw comments from several quarters.
    With inflation rising to new highs and Nigerians grappling with the removal of petroleum subsidy, the increase in tariff was met with stiff opposition.

    Human rights lawyer Femi Falana (SAN) had claimed that the Federal Government was raising funds for the “cash-strapped” DisCoS with the tariff hike.

    But while defending the move, the Minister of Power Adebayo Adelabu said the Federal Government will pay about N1.8trn in electricity subsidy in 2024.
    He argued that the Electricity Act, 2023 made provisions for the review of tariffs twice yearly.

    “Review of tariff is actually legal once it is within the exclusive responsibility of the Nigerian Electricity Regulatory Commission (NERC),” he said on an edition of Channels Television’s Politics Today. “The Act actually provides for review twice in a year, every six months,” he said.

    Following the clapback generated by the move, the House of Representatives asked NERC to suspend the implementation of the tariff hike.

  • More Woes For Nigerians As Presidency Moves To Increase VAT Rate

    More Woes For Nigerians As Presidency Moves To Increase VAT Rate

    The current financial woes of the Nigerian is set to get worse as the Presidential Committee on Fiscal Policy and Tax Reforms has put forth a proposal to increase the current Value Added Tax (VAT) rate. 

    Mr. Taiwo Oyedele the chairman of the committee, has highlighted the need for this change during a policy exposure session. 

    Currently set at 7.5 per cent, the proposed adjustment aims to restructure the revenue-sharing formula, with states and local governments set to receive a larger portion. 

    Oyedele stressed the importance of ensuring transparency and neutrality in VAT collection, emphasizing that the burden should fall on the ultimate consumer. 

    To mitigate the impact on small businesses and the underprivileged, certain essential goods and services would remain exempt from VAT. 

    He said, “We are proposing that the federal government’s portion should be reduced from 15 per cent to 10 per cent. States’ portion will be increased, but they would share 90 per cent with local governments.

    “In 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax, so they said it would collect VAT and return 15 per cent as cost of collection, and that is the 15 per cent charged today came about. But we think it is too much.

    So we must make it transparent and neutral, and this is what over 100 countries where they have VAT are doing.

    “Nigeria’s economy is more than 50 percent in services and if I just stop at this, many states will be broke because VAT collection will go down by more than 50 percent and it won’t even fly.

    “So we, therefore, need to adjust the VAT rate upward. We would ensure that it doesn’t affect businesses. The only thing is to look at basic consumption from food, education, medical services, and accommodation will carry zero per cent VAT. So, for the poor and small businesses, no VAT.”

  • CBN Suspends Charges On Cash Deposits 

    CBN Suspends Charges On Cash Deposits 

    The Central Bank of Nigeria has decided to stop charging fees on cash deposits until September 30, 2024.

    The central bank shared this information in a memo dated May 6, 2024, signed by Adetona Adedeji, who is the director of banking supervision at CBN.

    CBN said,“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for Individuals and N3,000,000 for Corporates as contained in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019,”

    “The Central Bank of Nigeria (CBN) hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024.”

  • Central Bank of Nigeria Mandates Registration of All PoS Operators with CAC

    Central Bank of Nigeria Mandates Registration of All PoS Operators with CAC

    In a bid to tackle fraudulent activities and bolster transparency within the financial sector, the Central Bank of Nigeria (CBN) has issued a directive requiring all point-of-sale (PoS) operators to register with the Corporate Affairs Commission (CAC) within a two-month timeframe.

    According to reports, PoS terminals have been implicated in a significant portion of fraud incidents, accounting for a staggering 26.37% of such cases in 2023 alone. This move by the CBN seeks to address these concerns and ensure the integrity of transactions conducted through PoS systems.

    With Nigeria boasting 1.8 million PoS agents as of 2022, the directive mandates that all operators must undergo registration with the CAC to continue conducting business in the country.

    The announcement came following a meeting between representatives from the fintech industry and Hussaini Magaji (SAN), the Registrar-General/Chief Executive Officer of the CAC, held in Abuja on Monday, May 7th. Magaji emphasized that the registration deadline of July 7th is in accordance with legal obligations and aligns with the directives of the CBN.

    “The Corporate Affairs Commission and Fintech companies in Nigeria, better known as PoS operators, have agreed to a two-month timeline to register their agents, merchants, and individuals with the CAC in line with legal requirements and the directives of the Central Bank of Nigeria,” stated Magaji.

    The collaborative effort between the CAC and fintech companies underscores the commitment to regulatory compliance and the promotion of a secure financial ecosystem in Nigeria.

  • Electricity tarrif : NLC, TUC insist on Sunday deadline to reverse hike

    Electricity tarrif : NLC, TUC insist on Sunday deadline to reverse hike

    Nigeria Labour Congress(NLC) and Trade Union Congress of Nigeria(TUC) have given the Nigerian Electricity Regulatory Commission(NERC) till May 12 to withdraw the recent hike in electricity tariff or face unprecedented industrial action.

    The ultimatum was issued in a joint letter to the Chairman/Chief Executive Officer, CEO, was copied to the Secretary to the Government of the Federation, SGF, the Ministers of Labour and Power and the electricity distribution companies, DisCos, among others, Joe Ajaero and Festus Osifo, President of NLC and TUC respectively.

    The letter read: “This is to refer you to our May Day address where we expressed grave concerns regarding the recent announcement of an astronomical hike in electricity tariff across the nation from N65/kWh to N225/Kwh by your commission.

    ‘’We believe that this decision is not just morally reprehensible considering the difficulties Nigerians are faced with currently, but it blatantly disregards fundamental principles and statutory obligations.

    ‘’It is a slap in the face of justice and fairness, and we will not stand idly by as the masses and workers are subjected to such unacceptable exploitation.

    “As the regulator of the electricity sector, it is imperative that your commission grasps the weight of its responsibilities. NERC’s role entails the regulation of electricity tariffs in the country, a duty outlined in explicit detail within the statutes governing the commission.

    ‘’Yet, with this recent tariff hike which you have acquiesced, it is evident that the Commission has forsaken its duty and abandoned the people it was meant to protect to the fat cats in the electricity industry.

    “We are miffed that NERC has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people. The Laws that set up the commission mandate it to act as an unbiased ombudsman in the electricity industry. ‘’Unfortunately, the reverse is the case as it has acted in cahoots with the Distribution Companies, DisCos and the Generating Companies, GenCos, to promote their nefarious market practices.

    “The announced tariff hike not only defies the established procedure mandated by law but also tramples upon the rights of Nigerian citizens. It is a flagrant abuse of power and a clear violation of the trust bestowed upon your commission by the Nigerian people. Such actions will not be tolerated, and we refuse to accept them as the new norm.

    “Nigerian workers and masses led by the Nigeria Labour Congress, NLC, and the Trade Union Congress of Nigeria, TUC, stand united in denouncing this injustice. We must defend the rights of our fellow citizens against exploitation.

    “Therefore, we demand an immediate reversal of the hike in electricity tariff to N65/kwh, immediate cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands, and restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.

    “We give you until Sunday, May 12, 2024, to comply. Failure to do so will result in swift and decisive action on our part as we will not hesitate to mobilize our members and occupy all NERC’s offices and those of the DisCos nationwide until justice is served.”

  • More Burden on Nigerians as the Central Bank Slams Another Tax on Bank Customers

    More Burden on Nigerians as the Central Bank Slams Another Tax on Bank Customers

    It will seem like there may be no respite soon for the toiling mass of Nigerians as they continue to be bombarded by all manners of taxes, tariffs and levies by the government and service providers with the latest being the introduction of a 0.5 per cent “cybersecurity levy” by the Central Bank of Nigeria (CBN).
    Earlier in the day, First Bank Nigeria Plc led others in the reintroduction of two percent processing charge on deposits above N500,000 and three per cent charge on amounts above N3,000,000 for corporate customers. The reintroduction of these charges is coming about four months after the Central Bank of Nigeria suspended such charges for cash deposits above N500,000.
    In a circular signed by Chibuzor Efobi, Director of Payments System Management and Haruna Mustafa, Director of Financial Policy and Regulation, the CBN said collection of the new levy shall commence in two weeks from yesterday, May 6th, 2024 and it shall be remitted to the Office of the National Security Adviser (ONSA).
    Even though the apex bank was silent on the use into which the ONSA will put the proceeds of the new tax to be paid by bank customers, it explained that deduction and collection of the cybersecurity levy is consequent upon the enactment of the Cybercrime (Prohibition, Prevention etc) Amendment Act of 2024.
    It was explained in the circular that Section 44 (2)(a) of the Act, provides for the collection of “a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the second schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).”
    It was further stated that the CBN shall rely on commercial, merchant, non-interest and payment service banks, as well as mobile money operators for the collection of the levy. It also stated that any defaulting institution that fails to remit funds collected shall be liable to a fine of not less than two percent of the annual turnover of the defaulting business.
    “Deductions shall commence within two (2) weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month,” the bank stated.

  • Ikeja Electric slashes tariff for Band A customers

    Ikeja Electric slashes tariff for Band A customers

    Ikeja Electric Distribution Company (IE) Monday, revealed that it has reduced it’s electricity tariff for customers under Band A from N225/kWh to N206.80/kWh.
    This was made known through a circular by the management of the company on its “X”(Formerly Twitter) page on Monday.
    Specifically, it said the customers will now pay N206.80/kwh as against the N225/kwh ordered by the Nigeria Electricity Regulatory Commission (NERC).
    According to the statement, IE guaranteed to provide 20 to 24 hours of electricity to users under this Band, adding that the tariff for customers under other categories will remain the same.

    It said: “Dear Esteemed Customers, Please be informed of the downward tariff review of our Band A feeders from N225/kwh to N206.80/kwh effective 6th May 2024 with guaranteed availability of 20-24hrs supply daily.
    “The tariff for Bands B, C, D, and E remains unchanged.”

  • FG Registers New Trade Union 

    FG Registers New Trade Union 

    The Federal Government has registered a new trade union.

    This means that illegal price fixing and exploitation of customers in Nigerian markets may soon be a thing of the past.

    These are some of the roles members of the newly registered National Union of Market Trade of Nigeria are to perform as workers.

    At its executive inauguration, officials of both the Ministry of Labour and Employment, and, the Nigeria Labour Congress, NLC however told the new union to avoid clashes with related workers groups and government established agencies in the market.

    The National Union of Market Trade of Nigeria is the latest affiliate of the NLC and with this latest addition, the labour centre now has 46 affiliates.