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  • N800bn subsidy debts: Oil marketers lament

    Oil marketers on Sunday appealed to Federal Government to effect quick payment of its outstanding N800 billion subsidy debts.

    The marketers, under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association (DAPPMA), made the appeal in a joint interactive session with journalists in Lagos.

    They urged government agencies saddled with the settlement of the payment to expedite action to save marketers from closing shop as interest on loans mounted.

    Senate Committee on Petroleum (Downstream) had in its Oct. 31 resolution directed the Ministry of Finance and the Debt Management Office (DMO) to meet with oil marketers and other stakeholders on grey areas and report back within one week.

    Mr Clement Isong, Executive Secretary of MOMAN, said that the unpaid debts had negatively impacted their working capital leading to their inability to pay their banks and service providers.

    He urged government agencies concerned to address the bureaucratic bottlenecks causing the delay in the payment process, adding that the delay had resulted in degrading oil and gas downstream subsector and hampered marketers’ business operation.

    MOMAN is a downstream oil and gas group made up of six major marketers including Mobil, Conoil, OVH Energy, Forte Oil, MRS Oil and Total Nigeria Plc.

    The MOMAN scribe re-assured government of their readiness to ensure availability of petroleum products across the country during and after the yuletide period, adding that marketers were fully ready to work with government on effective products distribution.

    According to him, the major challenge the Nigerian downstream petroleum sector is facing is the non-payment of the long outstanding fuel subsidy to oil marketers.

    “We appreciate the efforts of the National Assembly and the Federal Executive Council in approving payment, but the non-payment creates a significantly negative impact on the operational efficiency of the downstream sector of the oil industry.

    “Thereby placing a severe strain on its efforts to continually invest in infrastructure and raise industry standards.

    “We hope that the debts will be paid in full to the oil marketers as soon as possible,” he said.

    Isong disclosed that the debt owed MOMAN members alone stood at over N130.7 billion as at August 2018.

    He said that once reconciliation had been done and a particular figure was agreed as debt, he could not understand why settlements had not been made.

    Similarly, Executive Secretary, Deport and Petroleum Products Marketers of Nigeria, Olufemi Adewole, said that the processes highlighted for payment by the government were inimical to the operations of their businesses.

    Adewole said: “The processes they have highlighted is killing our businesses. Immediately the banks read in the media that the National Assembly had approved, they went to court, got injunction and seized our assets.”

    Adewole said that 60 per cent of marketers have been forced out of business as banks have taken over their depots, assets and properties, due to their inability to pay back monies borrowed to import fuel.

    He said many marketers were forced out of business, while others are struggling to survive due to government’s inability to settle the subsidy arrears, saying the development is threatening investment in the downstream subsector.

    The DAPPMAN scribe stressed that while the Federal Government had earmarked money to clear the debts, the marketers were yet to be paid.

    “The debt has had very adverse effects on our operations. I am aware of two depots that have been forcibly taken over by banks, because they got injunctions from the courts.

    “They did so the moment they heard that the National Assembly approved payment of the debt to marketers. Unfortunately, as at today the money was yet to get into our accounts,” he said.

    Adewole pointed out that the other challenge was that many of the marketers had laid off more than 90 per cent of their staff because of financial constraints.

    He however said that government had promised that part of the money would come as promissory note and cash, saying the information gathered was that the government may pay only in promissory note.

    “It means you have to go back and discount this promissory note in the bank. This means we are losing because the money has been delayed and this adds to the interest to be charged on our accounts.

    Recall the Debt Management Office (DMO) on Oct. 31, says it has commenced the accelerated implementation of settlement of government arrears through promissory notes to oil marketers.

    The DMO made this known in a statement issued in Abuja when it met with the Senate Committee on Downstream Petroleum Sector to discuss the issue of the outstanding payments to oil marketers.

    According to the statement, the implementation is in line with the process approved by the Federal Executive Council (FEC).

    It also quoted Sen. Kabiru Marafa, Chairman, Oil and Gas Senate Committee, as calling the meeting to ascertain the status of the implementation of the approvals given by the National Assembly for the settlement of arrears to oil marketers.

    The meeting was attended by representatives from the Ministry of Finance, DMO, Central Bank of Nigeria (CBN), Petroleum Products Pricing Regulatory Agency (PPPRA) and representatives of oil marketers.

    The obligations due to the oil marketers represent interest accruals and foreign exchange differentials, it said.

     

  • Eid-El Maulud: CBN postpones MPC meeting

    The Central Bank of Nigeria, on Saturday, rescheduled the November 19 meeting of the Monetary Policy Committee (MPC) to November 21 and 22 to accommodate the Eid-El Maulud celebrations.

    A statement by Mr Isaac Okorafor, Director, Corporate Communications, CBN, said the date was changed from Monday and Tuesday following the declaration of Tuesday as a public holiday by the Federal Government to mark the Eid-El Maulud.

    “The CBN regretted any inconvenience the change may have caused its stakeholders and the general public,” he said.

    The News Agency of Nigeria reports that the MPC is the highest policy making committee of the apex bank with the mandate to review economic and financial conditions in the economy.

    It is also to determine appropriate stance of policy in the short to medium term, review regularly, the CBN monetary policy framework and adopt changes when necessary.

    It also communicates monetary/financial policy decisions effectively to the public and ensures the credibility of the model of transmission mechanism of monetary policy.

    The MPC meets quarterly except otherwise, in the event of an emergency

  • Electronic fraud in banking hits N6.1trn by 2021 – CBN

    Mr Sunday Salam-Alada, Director, Consumer Protection Department, Central Bank of Nigeria (CBN) has said electronic fraud losses in the banking system are projected to reach N6.1 trillion by 2021.

    Salam-Alada disclosed this at the ongoing workshop for Business Editors and Finance Correspondents, organised by Nigeria Deposit Insurance Corporation (NDIC) in Benin.

    According to him, the volume and value of e-transactions is projected to continue to increase nationally and globally.

    Salam-Alada, represented by Mr Ibrahim Hassan, Director, Research, Policy, International Relations Department (RPIRD) NDIC, said it was due to broader ecosystem scope, evolution of channels, adaptability to disruptive innovations and modes payment.
    He said other reasons included increased inclusion and evolving technologies.

    The director also said that the CBN, through its Consumer Protection Department (CPD), had resolved over 13,715 complaints.

    Salam-Alada added that this resulted in the refund of about N72.2 billion to customers by the commercial banks based on 25,043 cases of fraud in 2017.

    He said the amount represented a 28 per cent increase if compared to 19,531 cases recorded in 2016.

    Salam-Alada said there was a 24 per cent reduction in actual fraud loss value in 2017 with N1.63 billion as against the to 2016 figures.

    According to him, the statistics provided by the CBN shows there is a significant increase in the year-on-year volume and value of transactions across all payment channels in Nigeria.

    Consequently, 1.4 billion transactions with a value of N97.4 trillion were processed in 2017 as against 869 million transactions with a value of N69.1 trillion recorded in 2016.

    He said the increase of 59.7 per cent and 40.9 per cent were recorded in the volume and value of transactions in 2017.

    The director hinted that the CBN would soon issue a framework on consumer protection.

    Salam-Alada said the CPD conducted a mapping exercise of financial literacy activities in the country.

    He added that it was one of the achievements of the department.

    He said the achievements also included the biannual consumer protection compliance exams and review of the guide to banks’ charges.

  • Bank customers to lose N6.1tn to e-fraudsters by 2021 – CBN

    Bank customers to lose N6.1tn to e-fraudsters by 2021 – CBN

    The Central Bank of Nigeria (CBN) on Wednesday predicted that E-fraud loses will reach N6.1 trillion by the year 2021.

    This was made known by S.K. Salam-Alada, who is the Director of Consumer Protection Department, CBN, at the workshop for business editors and finance correspondents association of Nigeria (FICAN) by the Nigeria Deposit Insurance Corporation (NDIC) in Benin on Wednesday.

    Salam-Alada, who was represented by Emmanuel Hassan, the Deputy Director of the Consumer Protection Department of the CBN, said: “We need to restore public trust and confidence in the financial system because of the problems of malfunction in our e-channels and electronic fraud (e-fraud).”

    According to him, the Consumer Protection Framework (CPF) by the CBN is supposed to not only engender public confidence in the financial system, but also guarantee high standards for efficient customer service delivery, market discipline and ensure that consumers are treated fairly by financial institutions regulated by the CBN.

    “Innovation technology is increasing rapidly and disrupting the financial space. We no longer go to our banks physically as often as we did in the past for financial transactions.

    “It is interesting to note that Nigeria is among the first countries in the world to adopt the chip and PIN methods of financial transactions verification when other countries were still considering it.

    “Nigeria adopted the Real-Time Payment (RTP) in 2016; this is a remarkable feat,” he said.

    He further added that: “In 2016, customers transacted electronically up to a volume of 869 million translating in value to N69.1 trillion. In 2017, the volume of e-transactions was 1.4 billion which translated to N97.4 trillion in value.

    “Fraud is a major issue on Consumer Protection. In 2016, 19,531 cases of fraud were reported by Deposit Money Banks (DMBs); in 2017, 25,043 cases of fraud were reported by DMBs.

    “There was a 28% increase in reported fraud cases from 2016 to 2017, and an actual loss of N1.63bn lost to fraud in 2017.

    “Every year, fraud cases have been increasing with 83% of it perpetrated through electronic means while 17% were via non-electronic means.”

    Concerning the achievements of the CBN with respect to consumer protection, Salam-Alada, explained that a total of 13,715 complaints have been resolved in recent times resulting to the refund of N66.5bn, $18.5m, €26,319.03 and £9,085.98.

    Dr. Uju Ogubunka, who is the president of Bank Customers Association of Nigeria said that: “I believe that consumers are partially protected.

    “The challenge is for the banks to recognize the right(s) of the consumers and to uphold and respect these right(s). There is much to be done concerning consumer protection.”


     

  • Teleology takes control, announces new board for former 9mobile

    Teleology has formally taken control of Nigeria’s troubled telecommunication company, 9mobile, by appointing a new board of directors headed by 54 year-old Nasiru Ado Bayero.

    Stephane Beuvelet will serve as acting managing director, according to a statement by Mohammed Edewor, a new Non-Executive of 9mobile.

    The appointment of the board followed followed the exit of the CBN appointed board and the transfer of ownership of the firm to the new investors, Teleology Nigeria Limited.

    Other members of the board are: Asega Aliga (Non-Executive Director), Adrian Wood (Non-Executive Director), Mohammed Edewor (Non-Executives Director), Winston Ndubueze (Non-Executive Director) and Abdulrahman Ado (Executive Director).

    “As we begin this epochal phase, we wish to thank all employees who built this viable business. Our debt of gratitude also goes to our subscribers even as we assure them to get ready for real best-in-class additional value for their relationship with 9mobile brand.

    “Without you, there could not have been a 9mobile business for us to invest in today.

    We will justify your confidence in our brand by making significant investments that will improve the value you get in using 9mobile.”

    Edewor thanked the outgoing members of the board, headed by Dr Joseph Nnanna, for helping to shepherd 9mobile through the critical transition phase it has passed through since July 2017.

    The CBN in collaboration with the Nigerian Telecommunication Commission (NCC), in July 2017, appointed a board of directors chaired by Nnanna, a Deputy Governor of CBN, to oversee the affairs of the company pending the completion of regulatory due diligence of the bid documents submitted by Teleology and 16 others.

    The bid process was midwifed by Barclays Africa.

    9mobile’s new Chairman Bayero, is a graduate of Mass Communication from University of Maiduguri.

    He is the Chiroma of Kano and district head of Nassarawa in the state.

    He is familiar with boardroom politics being a director of Platform Petroleum Ltd., Sahelian Energy & Integrated Services Ltd., Seplat and Intels.

    Bayero also worked at Continental Merchant Bank from 1988 to 1989, Coastal Corporation (Oil & Gas Company), Houston, Texas from 1990 to 1991 and Hamlet Investment Inc from 1991 to 1992.

    He is the Chairman of Endo Limited, a Nigerian company providing currency operation support services to the CBN.

     

  • From Etisalat to 9mobile, from 9mobile, now formally Teleology

    After metamorphosing from Etisalat, Teleology has formally taken over the management of 9mobile, and announced the constitution of a new board of directors for the company in Lagos on Monday.

    The constitution of the new board followed the successful completion of the tenure of the former board appointed by the Central Bank of Nigeria (CBN) and in fulfillment of the consequential transfer of final ownership to the new investors, Teleology Nigeria Limited.

    “We thank all out-going members of the board for helping to shepherd 9mobile through the critical transition phase it has passed through since July 2017 and wish them the very best in their future assignments.

    “For us, the composition of the new board of directors is another significant milestone, and this follows the issuance of final approval of no objection by the board of the Nigerian Communications Commission (NCC) to the effect that the technical and financial bids Teleology submitted for 9mobile met and satisfied all the regulatory requirements.

    “This is indeed the dawn of a new era in the evolution of the 9mobile brand in the Nigerian market.

    “Members of the new board of directors are: Nasiru Ado Bayero (Chairman), Asega Aliga (Non Executive Director), Adrian Wood (Non Executive Director), Mohammed Edewor (Non Executive Director). Winston Ndubueze Udeh (Non Executive Director). Abdulrahman Ado (Executive Director) and Stephane Beuvelet (Acting Managing Director)

    The company said that the new Chairman of the board had warmly received the appointment, “as we begin this new epochal phase, we wish to thank all the employees who built this viable business.

    “Our debt of gratitude also goes to our subscribers even as we assure them to get ready for real best-in-class additional value for their relationship with the 9mobile brand.

    “Without you, there could not have been a 9mobile business for us to invest in today. We will justify your confidence in our brand by making significant investments that will improve the value you get for using 9mobile.”

    The CBN in collaboration with the NCC, had in July 2017, appointed a board of directors, chaired by Dr. Joseph Nnanna, a Deputy Governor of the CBN, to oversee the affairs of the company pending the completion of regulatory due diligence of the bid documents submitted by Teleology and sixteen others for its acquisition.

    The bid process was superintended by Barclays Africa.

    With the emergence of this board, the long process for the acquisition of 9mobile has reached a definitive end marking the beginning of a new era for the telecommunication company.

     

  • Jonathan withdrew $270m from CBN in one day – Osinbajo

    …accuses ex-president of masterminding grand corruption while in office

    Vice-President Yemi Osinbajo on Monday accused former President Goodluck Jonathan of ordering the withdrawal of $270million from the nation’s treasury in one day without executing a single contract.

    The Vice President who had at different occasions lashed out at the former Nigerian leader said he (Jonathan) masterminded grand corrupt practices while in office.

    Osinbajo said, for instance, he was shocked to find that in one day $292m (about N70bn) was moved out from the Central Bank of Nigeria, “without any contract or any real explanation”.

    According to him, ‘that dollar haul from the CBN left the apex bank dollar broke for two weeks’.

    He said it was unimaginable that despite earning $381bn from crude sale between 2010 and 2014 – the highest that the country had ever earned – the nation’s external reserves fell to $30bn by 2014 and the Jonathan administration left behind a debt of $63.806bn.

    Osinbajo said this on Monday in Lagos in a lecture titled, “Restructuring and the Nigerian federation,” which he delivered as part activities marking the 40th anniversary of Association of Friends.

    He noted that between 2010 and 2015, Nigeria’s debt jumped from $35,093.10bn to $63,806.53bn.

    He said, “What do these figures show? They show that when oil prices were at the highest between 2010 and 2014 the government was borrowing heavily.

    “From 2010 to 2014, debts moved from $35bn to $63bn. When we assumed office in 2015, the debt that the previous government left was $63bn.

    “Today, three and half years later, the debt is $73bn.

    “There are two reasons why despite high earnings we are poorer – the first is grand corruption and mismanagement of resources. And there is a difference between grand corruption and ordinary corruption.

    “Grand corruption is directly stealing from the CBN, directly taking money from the treasury without any contract, no pretences; there’s no caution, you just take money. That was going on and I will give you several examples.

    “When I got to the office as Vice-President, I couldn’t believe it. In one day, $292m was signed out and it disappeared. After that period, for two weeks, the Central Bank of Nigeria did not have cash dollar – $292m without any real explanation! We later discovered what became of the money.

    “On another occasion, N60bn was moved out ostensibly for security purposes; but we know what happened.

    “When you have a corrupt government, large sums of money which can be used for development is simply taken. If you are the President of Nigeria, you can literally say, ‘Go and bring money’.

    “Look at a sum of N60bn; when someone can take N60bn; and $292m, that’s almost N70bn. Today, our TraderMoni scheme is costing us N20bn, where we’re giving to petty traders a loan of N10,000 and when they pay back, we give them N15,000 and when they pay back, we give them, N20,000. But somebody will take $292m, almost N70bn. If you have N70bn, you will solve the problem of seven million of those petty traders. That’s the kind of thing we are talking about and the kind of contrast that we’re trying to draw.”

  • Banks lost N12bn to robbery, other fraudulent activities in six months – CBN

    Banks lost N12bn to robbery, other fraudulent activities in six months – CBN

    Statistics obtained from the Central Bank of Nigeria (CBN) on Monday revealed that losses recorded by banks from armed robbery cases and other criminal activities perpetrated by members of staff and non-staff members of lending institutions rose to N12bn in six months.

    According to the CBN the attempted fraud and forgery cases, which were, however, not successful, stood at a figure of N7.99bn between January and June 2018.

    The CBN said that there was a staggering rise in the reported cases of such incidences from 16,762 in the first half of the financial year of 2017 to 20,768 in the corresponding period of 2018.

    It said, “There were 20,768 reported cases of fraud and forgery (attempted and successful), valued at N19.77bn in the review period, compared with 16,762 cases, involving N5.52bn and $ 0.12m in the corresponding period of 2017.

    “The actual loss by banks to fraud and forgery, however, amounted to N12.06bn, compared with the N0.78bn and $0.03m suffered in the first half of 2017.”

    The apex bank said the cases involved armed robbery attacks, fraudulent Automated Teller Machine withdrawals, defalcation, illegal funds transfer, pilfering of cash, stealing, suppression and conversion of customers’ deposits.

    As banks invest in their services to ensure that their technical systems are protected and secure, they have also continued to enlighten customers on how to stay safe with their deposits because fraudsters are also becoming more sophisticated in the way they gain access into different bank accounts.

    The banks have continued to have their share of the effects of insecurity challenges in the country as a result of reported cases of armed robbery attacks on them, situations in which robbers had carted away unspecified amount of money.

    Recall that one of the major costly attacks on banks this year, which did not only lead to loss of lives, was the incidence in April when armed gangs invaded five banks and wreaked havoc in Offa, Kwara State.

    Notwithstanding the risks in the economy and financial sector, the CBN noted that under its surveillance, it would continue to accord priority to the safety of the institutions.

    In that regard, it added that the CBN/Nigeria Deposit Insurance Corporation joint risk-based assessment of banks was conducted to ascertain the quality of risk assets and adequacy of loan loss provisions.

  • CBN injects $337.16m, 56.17m CNY into retail Secondary Market Intervention Sales

    CBN injects $337.16m, 56.17m CNY into retail Secondary Market Intervention Sales

    The Central Bank of Nigeria (CBN) on Friday said it injected 337.16 million dollars in the retail Secondary Market Intervention Sales (SMIS) in its first intervention in the inter-bank foreign market for November.

    A statement issued in Abuja by Isaac Okorafor, the bank’s Director of Corporate Communications, noted that the amount was in addition to 56.17million Chinese Yuan (CNY) in the spot and short tenored forwards segment of the market.

    Okorafor stated that the intervention was for requests in the agriculture and raw materials sectors.

    He added that “the Chinese Yuan, on the other hand, was for Renminbi denominated Letters of Credit.”

    The director stated that the market had continued to enjoy stability owing to the regular interventions by the bank, adding that it had also guaranteed stable exchange rate for the Naira.

    He assured that the CBN remained committed to ensuring that all the sectors of the forex market continued to enjoy access to the needed foreign exchange.

    The CBN had on Tuesday intervened in the wholesale segment of the inter-bank Foreign Exchange Market to the tune of 210 million dollars.

    Meanwhile, one dollar is exchanged for N362 at the Bureau de Change (BDC) segment of the foreign exchange market, while the Chinese Yuan exchanged for N54.

     

  • CBN issues guidelines for Payment Service Banks

    The Central Bank of Nigeria (CBN) on Thursday unveiled operational guidelines for Payment Service Banks (PSBs).

    The move is in furtherance of the CBN’s mandate of promoting a sound financial system and enhancing access to financial services for low income earners and unbanked segments of the society.

    The PSBs are to operate mostly in the rural areas and unbanked locations, targeting financially excluded persons, with not less than 25 per cent financial service touch points in such rural areas as defined by the CBN from time to time, the guidelines said.

    According to the CBN, the key objective of setting up PSBs is to enhance financial inclusion by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other financially excluded entities through high-volume low-value transactions in a secured technology-driven environment.

    The new banks are to also enter into direct partnership with card scheme operators but such cards shall not be eligible for foreign currency transactions.

    They are to deploy ATMs in some of these areas; deploy Point of Sale devices and be at liberty to operate through banking agents (in line with the CBN’s Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria).

    The National Financial Inclusion Strategy (NFIS), which supports PSBs, seeks to ensure that over 80 per cent of the bankable adults in Nigeria have access to financial services by 2020.

    The CBN, in collaboration with stakeholders, launched the NFIS on October 23, 2012 with a view to reducing the exclusion rate to 20 per cent by 2020.

    Despite several initiatives, including the Introduction of Microfinance banking, Agent Banking, Tiered Know-Your-Customer Requirements and Mobile Money Operation (MMO) in pursuit of this objective, the inclusion rate remains below expectation.

    The CBN, in the circumstance and in collaboration with critical stakeholders in the digital financial ecosystem, such as the Nigerian Communication Commission, commercial banks, mobile money operators and telecommunication companies have conducted several study tours of other jurisdictions that have made significant progress in driving financial inclusion.

    In view of the challenges to effective outreach to rural communities as well as the need to complement the services provided by other licensed entities, the CBN issues this regulation to provide for the licensing and operations of Payment Service Banks (PSBs) in Nigeria. It said PSBs are expected to leverage on mobile and digital channels to enhance financial inclusion and stimulate economic activities at the grassroots through the provision of financial services.

    Accordingly, PSBs are envisioned to facilitate high-volume low-value transactions in remittance services, micro-savings and withdrawal services in a secured technology-driven environment to further deepen financial inclusion and help in attaining the policy objective of 20 per cent exclusion rate by 2020.

    The guideline is issued pursuant to powers conferred on the CBN Governor by the CBN Act 2007 and BOFIA 1991 (as amended). It covers the definition; objectives; eligible promoters; licensing requirements; corporate governance; business conduct; and permissible activities. The requirements for prudential regulation; supervision; Know Your Customer (KYC), consumer protection as well as Risk Management of the proposed Payment Service Banks in Nigeria are also covered.