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  • Emefiele gets N300m bail, denies unlawful naira printing as CBN governor

    Emefiele gets N300m bail, denies unlawful naira printing as CBN governor

    An FCT High Court on Wednesday admitted the embattled former Central Bank Governor, Godwin Emefiele to bail in the sum of N300 million .

    Justice Maryann Anenih granted him to bail while ruling on his bail application over alleged unlawful naira colour swap.

    The Economic and Financial Crimes Commission brought against him a-four – count amended charge bordering on disobedience to direction of the law marked charge No: CR/264/2024.

    Anenih in addition, ordered Emefiele to produce for two sureties in like sum who must have property in Maitama district of Abuja.

    The sureties who must in addition present the title documents and certificates of occupancy (C of O) to the court for verification.

    The sureties in addition must submit to the Registrar of the court their recent passport photographs.

    The judge further added that Emefiele should submit to the registrar of the court his travelling documents and must be within Abuja within the period of his trial.

    The judge ordered that the certified true copy (CTC) from Justice Hamza Muazu’s bail conditions who granted him bail earlier must be submitted to her court.

    Anenih adjourned until May 28 for trial.

    The EFCC alleged that Emefiele, between October 2022 and March 2023, disobeyed the direction of section 19 of the CBN Act by approving the printing of 375,520,000 pieces of ”colour swapped” N1.000 for N11billon without the recommendation of board of the banl.

    In count two, he was accused of spending N4.4 billion to print 172,070,000 pieces of N500 colour swap.

    While count three stated that the embattled CBN governor used N3.4 billion to print colour swap of 137,070,000 pieces of N200.

    EFCC accused Emefiele in count four of withdrawing N124.8 billion from the consolidated revenue fund of Federation in a manner not prescribed by the National Assembly which caused injury to the public , contrary to section 123 of the penal code.

    He pleaded not guilty to the charge preferred against him.

    Earlier counsel for Emefiele, Mahmoud Magaji, SAN argued his bail application praying the court to admit him(Emefiele) to bail in self recognises .

    He added that in alternative, the court should grant him bail in the same conditions Justice Hamza Muazu of a Federal Capital Territory (FCT) granted him.

    Magaji informed the court that the defendant had always been in court for his trial.

    Responding, counsel for EFCC , Rotimi Oyedepo, SAN affirmed what Emefiele ‘s counsel told the court ‘ he is always present in court for his trial.’

    Emefiele is also standing trial before Justice Hamza Muazu of FCT high court on an alleged 20-count amended charge, preferred against him by the Economic and financial Crimes Commission (EFCC).

    He was alleged to have engaged in criminal breach of trust, forgery, conspiracy to obtain by false pretence and obtaining money by false pretence, when he served as the apex bank’s boss.

    Justice Olukayode Adeniyi of a Federal Capital Territory (FCT) high court also on Jan. 8 awarded N100 million damages to suspended former governor of the central bank of Nigeria (CBN) against the federal government and Economic and financial Crimes Commission (EFCC) for violations of his right.

    Adeniyi further restrained the federal government and it’s agents from arresting Emefiele unless an order was obtained through a competent court.

    The judge held that the respondents need not incarcerate the applicant in other to carry out investigation for a long period as against the provisions of the law.

    ” No material placed before the court to show that the release of the applicant will in any way interfere with the investigation of allegations preferred against him.

    The embattled Emefiele had dragged the Federal Government, Attorney-General of the Federation (AGF), Executive Chairman, the EFCC before the court to enforce his fundamental rights to life, personal liberty, fair hearing and freedom of movement.

    Emefiele sought a declaration of the court that his continued detention by the agency of the first and second respondents since June 10, 2023 and subsequent transfer to the custody of the third and fourth respondents on Oct. 26, 2023 without being arraigned in court is unlawful.

    He said the respondents in deviance of several valid subsisting court orders for his release amounts to a grave violation of his fundamental rights to life, personal liberty, as guaranteed by the 1999 Constitution of Nigeria (as amended) and the African Charter on Human and Peoples’ Rights.

  • BREAKING: Its official! Tinubu suspends 0.5% cybersecurity levy

    BREAKING: Its official! Tinubu suspends 0.5% cybersecurity levy

    President Bola Tinubu has officially directed that Central Bank of Nigeria (CBN) to suspend implementation of the 0.5 percent cybersecurity levy, following backlash and opposition by the public after its announcement.

    TheNewsGuru.com (TNG) reports Minister of Information and National Orientation, Mohammed Idris disclosed suspension of the 0.5 percent cybersecurity levy on Tuesday.

    Idris said President Tinubu has instructed the CBN to pause enforcement of the 0.5 percent cybersecurity levy and reassess the methods for its application.

     

    Details shortly…

  • Finally, Tinubu orders CBN to stop Cybersecurity levy

    Finally, Tinubu orders CBN to stop Cybersecurity levy

    President Bola Tinubu has ordered the Central Bank of Nigeria to suspend the implementation of the controversial cybersecurity levy policy.

    He has also ordered a review of the policy, which Nigerians and financial experts have widely rejected.

    This followed the decision of the House of Representatives, which, last Thursday, asked the CBN to withdraw its circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions in the country.

    The CBN on May 6, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.

    According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.

    Financial institutions are required to apply the levy at the point of electronic transfer origination.

    The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution. All financial institutions are required to start implementing the levy within two weeks from the issuance of the circular.

    By implication, the deduction of the levy by financial institutions should commence on May 20, 2024.

    However, financial institutions are to make their remittances in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.

    The circular also stipulates a timeframe for financial institutions to reconfigure their systems to ensure complete and timely submission of remittance files to the Nigeria Interbank Settlement Systems Plc as follows: “Commercial, Merchant, Non-Interest, and Payment Service Banks – Within four weeks of the issuance of the Circular.

    “All other Financial Institutions (Microfinance Banks, Primary Mortgage Banks, Development Financial Institutions) – Within eight weeks of the issuance of the Circular,” the circular noted.

    The CBN has emphasised strict adherence to this mandate, warning that any financial institution that fails to comply with the provisions will face severe penalties. As outlined in the Act, non-compliant entities are subject to a minimum fine of two per cent of their annual turnover upon conviction.

    The circular provides a list of transactions currently deemed eligible for exemption, to avoid multiple applications of the levy.

    These are loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and intra-bank transfers between customers of the same bank.

    Exemptions include other financial institutions’ transfers to their correspondent banks, interbank placements, banks’ transfers to CBN and vice versa, inter-branch transfers within a bank, cheque clearing and settlements, letters of credit, and banks’ recapitalisation-related funding.

    Others are bulk funds movement from collection accounts, savings, and deposits including transactions involving long-term investments such as treasury bills, bonds, and commercial papers, and government social welfare programmes transactions.

    These may include pension payments, non-profit and charitable transactions including donations to registered non-profit organisations or charities, educational institutions transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions, and transactions involving the bank’s internal accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.

    The introduction of the new levy sparked varied reactions among stakeholders as it is expected to raise the cost of conducting business in Nigeria and could potentially hinder the growth of digital transaction adoption.

    ‘Stop levy now’

    Members of the House of Representatives on Thursday asked the Central Bank of Nigeria to withdraw the circular directing financial institutions to commence implementation of the 0.5 per cent cybersecurity levy, describing it as “ambiguous”.

    The development was in response to a motion on the urgent need to halt and modify the implementation of the cybersecurity levy, moved by Kingsley Chinda.

  • Emefiele: Court admits bundles of documents in evidence

    Emefiele: Court admits bundles of documents in evidence

    The trial of the former Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, continued on Thursday with the Economic and Financial Crimes Commission tendering bundles of documents to nail him.

    Emefiele is standing trial over abuse of office and alleged $4.5 billion and N2.8 billion fraud while in office.

    The documents were tendered through the third prosecution witness, a Compliance Officer with the Zenith Bank, Mr Clement Ngolu, by the EFCC counsel, Mr Rotimi Oyedepo (SAN).

    The documents were admitted into evidence following a no-objection submission from the first defence counsel, Mr Olalekan Ojo (SAN), and the second  defence counsel, Mr Adeyinka Kotoye (SAN)

    Justice Rahman Oshodi admitted the original copies of Zenith Bank account opening package, statement of account of Limelight Multidimensional Services Ltd., sent to the EFCC in evidence.

    “I have read the documents dated March 2024, and I admit the original certified copy of the bundles of documents which include account opening package, statement of accounts in evidence and are marked as Exhibit A,” Oshodi said.

    Ngolu, in his evidence, said his department responded to regulators and law enforcement agencies in order to ensure that the bank activities were in line with banking policies and regulations.

    He added that his department worked with agencies such as the EFCC, the Nigeria Police, the Independent Corrupt Practices and Other Related Offences Commission and the Nigeria Security and Civil Defence Corps.

    The witness said that his department, in 2014, got a request from the EFCC to furnish them with statements of accounts of Limelight and two other accounts.

    “The  documents we sent to the EFCC were duly signed by the staff of the bank.

    “The process of generating the statement was through our computer system which was in good condition.

    “The documents were printed out from the company’s computer which was working well and the documents were in the bank’s custody,” the witness said.

    The defence, however, said they had no question for the witness.

    Also, a former Director of Information Technology of CBN, Mr John Ayoh, in the continuation of his cross-examination, said he had a confrontation with Emefiele because he asked him to do something wrong.

    The witness, who further confirmed that he was sidelined by the  embattled governor, added that his being sidelined made him not to have any relationship with him.

    “I was not happy being unpopular with the former CBN governor, but on a number of occasions, I signed contract letters to vendors.

    “While I was a director with the CBN, my loyalty was to the bank and the Nigerian nation and my relationship with Emefiele was only formal and based on instructions.

    “The governor and the four deputy governors of the bank, alongside the directors, make up the management of the CBN,” he said.

    The fourth witness, a contractor, in his evidence, testified before  the court how he was allegedly pressurised by the apex bank management to pay $600,000 for the contract which he had executed.

    Ayoh had, on April 29, narrated before the court how he allegedly collected $600,000 for contract gratification for Emefiele.

    The EFCC had, on April 8, arraigned Emefiele on 23 counts bordering on abuse of office, accepting gratifications, corrupt demand, receiving property fraudulently obtained and conferring corrupt advantage.

    Also, his co-defendant was arraigned on three counts bordering on acceptance of gift by agents.

    The defendants, however, pleaded not guilty to the charge.

    The judge adjourned the case until May 17, for continuation of trial.

  • Cybersecurity levy: TUC kicks, threatens shutdown

    Cybersecurity levy: TUC kicks, threatens shutdown

    The Trade Union Congress of Nigeria (TUC) has threatened a shut down of the economy over the plan to begin implementation of the 0.5 per cent cyber security levy on electronic transactions.

    The body urged the Federal Government to direct the Central Bank of Nigeria (CBN) to withdraw its directive to financial institutions on the issue, to avert the shutdown.

    The union’s President, Mr Festus Osifo, gave the warning in a statement on Wednesday.

    CBN had recently, directed banks to implement the 0.5 per cent cybersecurity levy on electronic transactions from May 20.

    The apex bank said the directive followed the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024.

    It said that the proceeds were to be remitted to the National Cybersecurity Fund which would be administered by the Office of the National Security Adviser.

    Osifo described such plan as illogical, coming at a time that Nigerians were grappling with high cost of living.

    He said that such high cost of living was imposed by devaluation of Naira, hyper hike in the cost of petrol, supersonic increment in the cost of electricity tariff, among others.

    “We are quite disturbed that since the inception of this administration, its policies have brought pain, anguish and sorrow on Nigerians.

    “Whereas, a bank account holder in Nigeria today is currently charged stamp duty, transfer fee, VAT on transfer fee, and all forms of account maintenance levies by both government and the banks, this burden seems not to be enough, as government is poised to inflict further pain on the already battered Nigerians.

    “So, many policies of this government are not only imposing hardship on the downtrodden Nigerians but also on businesses, as some of them are shutting down because of the unfriendly business environment, “ he said.

    The union leader expressed fears that the development would further encourage people to hoard cash at home, reduce financial inclusion, increase poverty and exacerbate misery index.

    According to him, all Nigerians are interested in right now is the urgent conclusion of discussions around the minimum wage.

    “Not a vexatious policy that is further reducing the already depleted disposable income of the masses and indirectly ridiculing the gain which the minimum wage would have brought to the people when concluded,” he added.

  • CBN unveils list of licensed Deposit Money Banks in Nigeria

    CBN unveils list of licensed Deposit Money Banks in Nigeria

    The Central Bank of Nigeria (CBN) has released the latest update comprising 44 licensed deposit money banks across the nation.

    This announcement was made public through a comprehensive list published on the CBN’s official website, marking Tuesday as the disclosure date.

    As per the CBN’s documentation, a total of seven banks, namely Zenith Bank, Access Bank, First Bank, First City Monument Bank, United Bank of Africa, Fidelity, and Guaranty Trust Bank, boast Commercial Banking licenses with international authorization, effective as of April 26, 2024.

    Additionally, fifteen banks hold commercial banking licenses with National Authorization, while four others operate under regional authorization. Moreover, the list includes four non-interest banks authorized nationally.

     

    The CBN also underscores the presence of six licensed merchant banks operating with national authorization and highlights the expansion of financial holding companies, which now stand at seven.

    Furthermore, the regulatory body mentions the representation of a Mauritius commercial bank through its office in the country.

    This compilation arrives following previous directives from the CBN to increase the minimum capital requirements across all banks in Nigeria, aiming to fortify the nation’s financial sector.

  • NLC rejects CBN’s cybersecurity levy

    NLC rejects CBN’s cybersecurity levy

    The Nigeria Labour Congress (NLC) has rejected the recent directive by the Central Bank of Nigeria (CBN) of 0.5 (0.005) per cent Cybersecurity Levy on electronic transfers.

    Mr Joe Ajaero, NLC President stated the NLC position in a statement made available to newsmen on Tuesday in Abuja.

    Ajaero was reacting to a recent circular issued by the CBN, mandating banks and payment service operators to effect the deductions, effective in two weeks.

    The CBN has said that the move, ‘ostensibly aimed at bolstering cybersecurity measures, threatens to exacerbate the financial strain already faced by the populace’.

    Ajaero said the NLC vehemently condemned the directives and therefore called for immediate stoppage and reversal of the policy.

    According to him, this levy, to be implemented by deduction at the transaction origination, is yet another burden on the shoulders of hardworking Nigerians.

    “The Nigeria Labour Congress recognises the importance of cybersecurity in today’s digital age.

    “However, imposing such a levy on electronic transactions, without due consideration for its implications on workers and the vulnerable segments of society, is unjustifiable.

    “This levy stands as another tax too much for Nigerians, burdening them with additional financial responsibilities.

    “We see in this levy as another gang up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses,”he said.

    He noted that while the CBN had exempted interbank transfers and loans transactions from the levy, the broader impact on everyday transactions would not be overlooked.

    He added that such deductions directly affect the disposable income of workers and further diminish the purchasing power of the common citizen.

    The NLC president also noted that domestic manufacturers and other businesses were already shuttering as a result of the stifling socioeconomic environment.

    He added that, yet, instead of creating a business-friendly environment to encourage greater investments in the economy, the opposite seems to be what is being practised.

    Ajaero therefore, called on the Federal Government to reconsider the directives and prioritise policies that alleviate the financial burdens of Nigerians.

    “We urge a collaborative approach between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not unduly burden the populace.

    “We reiterate our commitment to championing the rights and welfare of Nigerian workers and masses,”he said.

  • BREAKING! CBN orders banks to stop charges on cash deposits till September

    BREAKING! CBN orders banks to stop charges on cash deposits till September

    The Central Bank of Nigeria has ordered banks to stop charges on cash deposits until September 30, 2024.

    The apex bank disclosed this in a circular dated May 6, 2024, signed by its Director of Banking Supervision, Adetona Adedeji.

    Customers of some of the Deposit Money Banks raised concerns that the banks have begun collection of processing fees for cash deposits as of May 1.

    Based on the bank’s move, two per cent was to be charged on deposits above N500,000 for individuals, while corporate account holders were to be charged two per cent on deposits above N3m.

    According to the latest circular to financial institutions and non-financial institutions, CBN said the processing fees have been suspended.

    The circular read, “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,” CBN said

    “The Central Bank of Nigeria 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.”

    The apex bank directed financial institutions to continue to accept all cash deposits from the public without any charges till the end of the third quarter

     

  • CBN introduces new transfer charge for cybersecurity

    CBN introduces new transfer charge for cybersecurity

    The Central Bank of Nigeria (CBN) has directed all financial institutions in the country to begin the implementation of a new transfer charge known as cybersecurity levy.

    TheNewsGuru.com (TNG) reports that beginning from May 20 any electronic transactions made by banks customers would attract a charge of 0.5% of the transferred amount.

    Deduction of the cybersecurity levy on all electronic transactions effective May 20, 2024, is coming six years after the CBN first issued the directive.

    The deductions were to be remitted to the National Security Fund, which is being administered by the Office of the National Security Adviser (ONSA).

    The deductions were to be effected on all electronic transactions consummated through commercial banks, merchant banks, non-interest banks, payment system banks, Other Financial Institutions (OFIs) mobile money operators and payment service providers. Failure to comply and remit within the stipulated time frame will lead to a penalty of two per cent of the annual turnover of the institution.

    On June 25, 2018, the apex bank had released guidelines for the collection of a 0.005 per cent levy on electronic transactions for the National Cybersecurity Fund, directing that the levy will take effect from 1st of July 2018. The directive however did not take off.

    Consequently, in a circular dated May 6, 2024 and jointly signed by the CBN director of payments systems management, Chibuzor Efobi and Director, Financial Policy and Regulation, Haruna Mustafa, the CBN directed that banks in the country begin the deductions for onward remittance.

    According to the circular, following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2)(a) of the Act, “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).

    “Accordingly, all Banks, Other Financial Institutions and Payments Service Providers are hereby required to implement the above provision of the Act as follows: The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution.

    “The deducted amount shall be reflected in the customer’s account with the narration: “Cybersecurity Levy”. 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.

    “System reconfigurations towards ensuring complete and timely submission of remittance files to the Nigeria Interbank Settlement System (NIBSS) Plc shall be completed within four weeks of this circular – Commercial, Merchant, Non- Interest and Payment Service Banks; and Mobile Money Operators.

    “Within eight weeks of this circular – all Other Financial Institutions (Microfinance banks, Primary Mortgage banks, Development Finance Institutions). Exemptions – To avoid multiple application of the levy on the same transaction/transfer, Appendix 1 (attached) captures transactions currently deemed eligible and are exempted from the application of the levy.

    “Section 44 (8) of the Act prescribes that failure to remit the levy is an offence and is liable on conviction to a fine of not less than two per cent of the annual turnover of the defaulting business, amongst others.”

  • CBN Governor, Cardozo states reasons Nigeria is experiencing hyper food inflation

    CBN Governor, Cardozo states reasons Nigeria is experiencing hyper food inflation

     Olayemi Cardoso, the Governor of the Central Bank of Nigeria,  has stated reasons why the country is experiencing hyper food inflation.

    Cardozo said the huge purchases of food items by the government as palliatives for distribution to vulnerable citizens is a contributor to the galloping food inflation in the country.

    The CBN Governor  made this known  in his contributions during the March Monetary Policy Committee meeting, which was published on the CBN website on Monday.

    At the meeting, the Monetary Policy Committees, MPC raised the benchmark interest rate to 24.75 percent from 22.75 percent, which it said was aimed at tackling inflation.

    It would be recalled that the food inflation rate also reached 40.01 per cent, with a year-on-year increase of 15.56 percentage points from 24.45 per cent in March 2023.

    Continuing, the CBN governor noted that inflationary pressure had failed to abate despite notable stability in the foreign exchange market.

    He said, “Despite notable stability in the foreign exchange market resulting from decisions taken at that 293rd MPC meeting, inflationary pressure remains unabated. While there is the argument that the significant tightening since the last MPC meeting is yet to fully permeate the system and yield its expected impact, the risk of galloping inflation persists.

    “If such a hyperinflationary scenario is to become reality, available options to control inflation could be severely constrained. From the facts presented to the MPC, there is a clear indication that the monetary factors contributing to inflation are diminishing in their significance.

    “This could be considered as evidence of the impact of decisions reached at the 293rd MPC meeting. Staff reports show that the principal drivers of acceleration in inflation are hikes in food and energy prices which are associated with structural factors,” he added.

    The Consumer Price Index report released by the Nigerian Bureau of Statistics, NBS, in April, stated that the country’s inflation rate increased to 33.2 per cent in March.

    The food inflation rate also reached 40.01 per cent, with a year-on-year increase of 15.56 percentage points from 24.45 per cent in March 2023.