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Tag: Folashodun Shonubi

  • Shonubi reveals what Emefiele told him about Naira redesign

    Shonubi reveals what Emefiele told him about Naira redesign

    A former Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, has said he learnt that there were intrigues and politics in the naira redesign exercise carried out in 2022.

    Shonubi, then Deputy Governor (Operations) before his appointment as Acting CBN Governor, said the former Governor of the CBN, Godwin Emefiele, told him and others that there were intrigues and politics in the whole exercise.

    Shonubi, now retired, who is the Prosecution’s third witness, made this claim in reaction to a question from Emefiele’s lawyer, Olalekan Ojo, at the resumed hearing in the trial of the ex-governor of the CBN.

    Emefiele is being prosecuted by the Economic and Financial Crimes Commission (EFCC) before the High Court of the Federal Capital Territory FCT (FCT) on four counts bordering on disobedience to the direction of law and illegal act causing injury to the public about the naira redesign exercise.

    Ojo had asked Shonubi if, as a seasoned CBN banker, he was aware of the intrigues and politics in the naira redesign exercise.

    The witness said he ordinarily did not know, but learnt from Emefiele, during one of their meetings, that there were indeed intrigues and politics in the exercise.

    The witness however did not say if Emefiele told them what the intrigues and politics were.

    When asked if indeed there was presidential approval for the naira redesign, the witness said the defendant presented a document during one of the meetings of the CBN’s Committee of Governors (COG) containing the signature of the president.

    Shonubi, however, said what the CBN under Emefiele produced after the naira redesign exercise was different from what President Bola Buhari approved.

    He said the redesigned naira notes were launched by President Buhari, adding that he was not aware of a letter from the president complaining about the naira redesign.

    The witness also said he did not come across any letter from either the COG or the board of the CBN protesting against or condemning the approval of the president for currency redesign.

    On whether he knew all that transpired between President Buhari and Emefiele in the course of the naira redesign exercise, the witness said no.

    Shonubi said he is not aware of the oral discussions between the defendant and the then-president about the naira redesign exercise.

    He said it was only the defendant who was interacting with the president on this issue.

    Shonubi confirmed that he was invited once by the EFCC about the case and that he made statements.

    He however said the EFCC did not have a physical confrontation between him and the defendant in respect of what was contained in his statements that related to him (the defendant).

    While being led in evidence by prosecuting lawyer, Rotimi Oyedepo, earlier, the witness said what was produced by the CBN under Emefiele as the redesigned naira notes were not the same as approved by the President.

    He said the memo presented to the president for the naira redesign was solely prepared by Emefiele and sent to the president.

    Shonubi said the CBN, under Emefiele, did not follow its laid down procedures for currency redesign.

    He stated that the normal procedures were for the Currency Management Department of the CBN to make recommendations on the need to redesign the currency, after which a paper would be submitted to the Committee of Governors (COG) of the bank for consideration.

    The witness added that upon the COG’s approval to the CBN Board, it would, in turn, make a recommendation to the President of the Federal Republic of Nigeria.

    He said after the President’s approval was received, the bank would then set up an internal committee to execute the currency redesign exercise.

    Shonubi, who said, as a Deputy Governor, he was a member of both the COG and CBN Board, told the court that Emefiele stepped down the recommendation made in early 2021 by the bank’s Currency Department.

     

  • CBN to take measures to save forex market

    CBN to take measures to save forex market

    The Central Bank of Nigeria (CBN) will soon come up with stringent measures to stabilise multiple exchange rates in the country.

    The CBN Acting Governor, Mr Folashodun Shonubi, disclosed this to State House Correspondents after a meeting with President Bola Tinubu on Monday in Abuja.

    Shonubi said that this followed the negative effect on the economy by the noncompliance of operators of the forex market to the harmonisation of rates since its introduction.

    He said that the President was concerned about the negative impact of the current exchange rate by the operators.

    According to him, the bank will in a few days take measures to make the operators in the exchange market comply with directives on the trading of forex.

    Speculative activities in the forex market has led to high prices which was not impacting positively on the economy.

    In his inaugural speech on May 29, Tinubu said CBN would work towards a unified exchange rate in order to reduce the nation’s Monetary Interest Rate, currently at 18.5 per cent and ensure a single exchange rate.

    The CBN then adopted a clean float foreign exchange management in the Nigerian Foreign Exchange market.

    It abolished its hitherto multiple exchange rate windows and collapsed them into the business-based Investors and Exporters window.

    “All segments are now collapsed into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks,” the CBN said in a statement.

    “Mr. President is very concerned about some of the goings on in the foreign exchange market. One of the things we discussed were, what could be done to stabilize and what could be done to improve the liquidity in the market and also the goings on in the various other markets including the parallel market.

    “He is concerned about its impact on the average person, since, unfortunately a lot of activities that we do, which are purely local are still referenced to the exchange rates in the parallel markets.

    “We have discussed and shared with him what we’re doing to improve supply. If you look at the official market, you will find that that market has been fairly stable and the spreads of the difference are not fluctuated as much.

    “We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply but are topped by speculative demand from people.

    “Some of the plans and strategies which I’m not at liberty to share with you, means sooner rather than later, the speculators should be careful, because we believe the things we’re doing when they come to fruition may result in significant losses to them.”

    The CBN acting governor said that the measure would not only ensure the environment operates at a level that’s more efficient, but also reduce the negative impact on the economy and on the lives of the average person.

    Exchange rates are constantly moving, based on supply and demand.

    Whether one currency is in higher demand than another, depends on the perceived value of owning it, either to pay for goods and services, or as an investment.

    Currently the dollar exchange for N950 in black market, while the official window go for N940.

  • Why CBN moderately raised interest rate from 18.50% to 18.75%

    Why CBN moderately raised interest rate from 18.50% to 18.75%

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), on Monday, raised the country’s Monetary Policy Rate (MPR) from 18.50 per cent to 18.75 per cent.

    The Acting Governor of the CBN, Mr Folashodun Shonubi made this known on Tuesday while presenting the communique from the MPC meeting.

    TheNewsGuru.com (TNG) reports that the MPR is the baseline interest rate upon which other interest rates are built.

    Shonubi announced that the committee also adjusted the asymmetric corridor from +100/-700 to +100/-300 basis points around the MPR, retained the Cash Reserve Ratio (CRR) at 32.5 per cent; and retained the Liquidity Ratio at 30 per cent.

    According to Shonubi, the committee is confronted with only two policy options, to hold or marginally hike the policy rate to offset the moderate increase in headline inflation.

    “Considering the option to hold, the committee reviewed the impact of the continued rise in inflation on various macroeconomic variables, noting the potential dampening effect on output growth.

    “Members agreed unanimously that the previous series of rate hikes had indeed greatly moderated the pace of price development and was gradually but steadily yielding the expected outcome.

    “The option to continue to hike the policy rate, albeit moderately, also presents a strong alternative,” he said.

    He said that this was premised on the expected liquidity injections into the economy, from the recent policy developments and the likely impact on inflation.

    “The committee remained cautious in arriving at a policy decision as members noted the need to continue to support investment which will ultimately lead to the recovery of output growth.

    “The balance of these arguments thus, leaned in favour of a moderate rate hike, to sustain efforts at anchoring inflation expectation, narrow the negative real interest rate gap, and improve investor confidence.

    “The MPC, thus, resolved by a majority vote to raise the Monetary Policy Rate (MPR) by 25 basis points. Six members voted to raise MPR by 25 basis points while five members voted to hold the MPR Constant.

    “All members, however, voted to narrow the asymmetric corridor from +100/-700 to +100/-300 around the MPR,” he said.

  • BREAKING: CBN hikes interest rate to 18.75%

    BREAKING: CBN hikes interest rate to 18.75%

    The Central Bank of Nigeria (CBN) has moderately raised the monetary policy rate (MPR) from 18.5% to 18.75%.

    TheNewsGuru.com (TNG) reports MPR is the baseline interest rate in an economy on which every other interest rate used within the economy is built on it.

    Acting CBN Governor, Mr Folashodun Shonubi disclosed the hike in MPR at the 292nd Meeting of the Monetary Policy Committee (MPC) press briefing on Tuesday.

    “In summary, the MPC voted to raise the policy rate by 25 basis point from 18.5% to 18.75%; adjust the asymmetric corridor to +100, -300 basis point around the MPR; retain the CRR at 32.5% and retain the liquidity ratio at 30%,” Mr Shonubi stated.

    TNG reports CRR is the share of a bank’s total customer deposit that must be kept with the central bank in the form of liquid cash, while the bank’s liquidity ratio is the proportion of deposits and other assets they must maintain to be able to meet short-term obligations.

     

    Details shortly…

  • President Tinubu criticized for appointing Folashodun Shonubi as acting CBN Governor

    President Tinubu criticized for appointing Folashodun Shonubi as acting CBN Governor

    Socio-political activist, Deji Adeyanju has criticized President Bola Tinubu for appointing Folashodun Adebisi Shonubi as the acting Governor of the Central Bank of Nigeria (CBN).

    TheNewsGuru.com (TNG) reports Godwin Emefiele was suspended by President Tinubu on Friday night with instructions to hand over to his deputy Adebisi Shonubi who is expected to run the affairs of the CBN on acting capacity.

    According to Adeyanju, it’s a disappointment for Tinubu to appoint Shonubi as acting CBN governor.

    However, Adeyanju said Tinubu’s decision to appoint Shonubi, who is a mechanical engineer, might lead to Nigeria’s failure.

    In a Facebook post, Adeyanju wrote: “While I commend President Bola Tinubu for suspending Emefiele, I am highly disappointed that he has appointed Shonubi, a mechanical engineer as Acting Governor of the Apex bank.

    “Kenya just appointed an Economist with PhD. as its CBN Gov. Turkey has also recently done the same.

    “While we are still saying the FG must stop appointing bankers as CBN Governor because they know nothing about fiscal policies or how to run an economy, the new president goes to appoint a mechanical engineer as Acting CBN Governor. This is why nations fail.”

    Emefiele’s suspension long foretold, but announcement unexpected – Expert

    A financial expert, Prof. Uche Uwaleke, says the suspension of the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele was long foretold.

    Uwaleke,  a Professor of Finance and Capital Market at the Nasarawa State University,  Keffi, said  this  in  an  interview on Friday in Abuja.

    He, however, said that the announcement on Friday caught many Nigerians by surprise.

    According to him, the President can not sack the CBN Governor, but he can suspend, which is what the he has done.

    “Recall that Mr Sanusi Lamido Sanusi was equally suspended from office by the Jonathan administration.

    “This suspension will mark an end to a turbulent era,” he said.

    He said that Emefiele would be remembered for implementing big ideas such as the Anchor Borrower Programme, the RT200, the eNaira and a raft of interventions which helped to stimulate the economy during periods of economic recession.

    “To be fair, Emefiele, to a large extent, succeeded in ensuring financial sector stability,  going by the prudential ratios.

    “His forex demand management policies, especially the 41 items not qualified for forex, promoted import substitution, conserved external reserves and ensured relative stability in exchange rates.

    “It would be unfair to blame him for the current high inflation rate since most of the causative factors are beyond the control of the CBN,” Uwaleke said.

    He said that on the flip side, Emefiele would also be remembered for the currency redesign exercise which did not go down well with Nigerians.

    He added that the CBN Ways and Means, which grew astronomically during his tenure also casted a dark spot on his legacy.

    “His greatest mis-step was his attempt to join the list of presidential candidates.

    “All said, I think Emefiele deserves some rest now,” he said.

    President Bola Tinubu suspended Emefiele from office with immediate effect on Friday.

    This was contained in a statement by Willie Bassey, Director, Information Office of the Secretary to the Government of the Federation.

    According to Bassey, the suspension is sequel to the ongoing investigation of Emefiele’s office and the planned reforms in the financial sector of the economy.

    He said that Emefiele had been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), Mr Folashodun  Shonubi,

    Shonubi will act as the CBN Governor, pending the conclusion of investigation and the reforms.

    Emefiele’s suspension not a surprise – Muda Yusuf

    Dr Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), says the suspension of Mr Godwin Emefiele as the CBN Governor is not a surprise.

    Yusuf  in an interview on Friday in Lagos, said the suspension showed that “President Bola Tinubu’s administration is at variance with the policy disposition of the CBN under Emefiele.”

    “The monetary and foreign exchange policy thrusts of President Tinubu’s administration is at variance with the policy disposition of the CBN under Emefiele.

    “President Tinubu was very clear in his inaugural speech about his resentment of some current CBN policies such as the multiple exchange rate and the Naira redesign policy.

    “The president also hinted of a house cleaning plan for the CBN.

    “It is impractical to reform the apex bank and review some of its major policies with Mr Emefiele remaining on seat as governor.”

    According to Yusuf, it is therefore logical that CBN governor be advised to proceed on suspension.

    “The truth is that there is a major compatibility issue. The parting of ways was inevitable.”

    He said that the brazen involvement of the CBN governor in partisan politics was an aberration and most unbecoming.

    According to him, it was damaging to the credibility of the CBN and the reputation of the governor himself.

    Tinubu suspended Emefiele from office with immediate effect on Friday.

    This was contained in a statement by Willie Bassey, Director, Information, Office of the Secretary to the Government of the Federation.

    According to Bassey, the suspension is sequel to the ongoing investigation of Emefiele’s  office and the planned reforms in the financial sector of the economy.

    He said that Emefiele had been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), Mr Folashodun Shonubi,

    Shonubi will act as the CBN Governor, pending the conclusion of investigation and the reforms.

  • What you should know about the acting CBN governor

    What you should know about the acting CBN governor

    Folashodun Adebisi was born on the 7th of March, 1962. He attended the University of Lagos from 1978 to 1983 and obtained a Bachelor of Science in Mechanical Engineering.

    He further obtained a Master of Science in Mechanical Engineering in 1985 with bias in Production Engineering from the same University. From 1988-1989 he shifted grounds to Finance and obtained a Masters’ in Business Administration specializing in Finance.

    He began his working experience as a Consultant Engineer at Mek-ind Associates and worked from 1984 to 1989. From 1989 to 1990, he was a Marketing Executive at Inlaks Computers Limited. He moved to Citibank Nigeria Limited as Head, Treasury Operations from 1990 to 1993.

    He joined Agusto & Co. Ltd as a Supervising Consultant from 1993 to 1996 from where he moved to MBC International Limited as Deputy General Manager, Banking Operations & Information Technology from 1999. In 1999, he joined First City Monument Bank (FCMB) Limited as Vice-President, Operations & Information Technology and was there till 2002.

    In 2003, he moved from FCMB to Ecobank Nigeria Plc as an Executive Director, Operations & Information Technology and in 2007 he became the Director, Information Technology and Corporate Services, Renaissance Securities Nigeria Limited. He was recruited by Union Bank of Nigeria Limited as an Executive Director, Operations, Technology and Services, September 2009 to April 2012.

    He became the Managing Director/CEO, Nigeria Inter-Bank Settlement System Plc from May 2012 to October 2018. October 2018 to date, Mr. Folashodun is the Deputy Governor, Operations of the Central Bank of Nigeria (CBN) representing the Governor of the Central Bank of Nigeria on the Board of FIRS since the 9th of December, 2019. He is married with children.

     

  • BREAKING: Folashodun Adebisi Shonubi named acting CBN Governor

    BREAKING: Folashodun Adebisi Shonubi named acting CBN Governor

    Following the suspension and subsequent arrest of Mr Godwin Emefiele, Mr Folashodun Adebisi Shonubi has been named as the acting Governor of the Central Bank of Nigeria (CBN).

    TheNewsGuru.com (TNG) reports Shonubi, born on the 7th of March, 1962, has been since October 2018, the CBN’s Deputy Governor in charge of Operations Directorate.

    The CBN acting Governor attended the University of Lagos from 1978 to 1983 and obtained a Bachelor of Science in Mechanical Engineering. He also represents the CBN on the board of FIRS.

    Recall that President Bola Tinubu suspended Emefiele from office as CBN governor with immediate effect on Friday.

    The Secretary to the Government of the Federation (SGF), Sen. George Akume, made the disclosure in a statement in Abuja.

    According to Akume, this is sequel to the ongoing investigation of the CBN boss office and the planned reforms in the financial sector of the economy.

    “Mr Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), who will act as the CBN Governor, pending the conclusion of investigation and the reforms,” he said.

    Following, the suspension, reports quickly emerged that Emefiele has been arrested by operatives of the Department of State Security Services (DSS).

  • CBN accepts culpability for chaos arising from Naira redesign

    CBN accepts culpability for chaos arising from Naira redesign

    The Central Bank of Nigeria (CBN) has accepted culpability for the chaos arising from the redesign of the N200, N500 and N1000 banknotes and the resultant suffering Nigerians are faced with.

    Mr Folashodun Shonubi, CBN’s Deputy Governor in charge of Operations said the apex bank did not anticipate the resultant effects of the Naira redesign and cash withdrawal limits policies.

    Speaking at the 22nd fellowship conferment lecture and ceremony organised by the Nigerian Society of Engineers (NSE) in Abuja, Mr Shonubi acknowledged that there was an oversight.

    The lecture held on Thursday, February 9, 2023, was titled, ‘The intricacies of the naira redesign and its benefit to Nigerians’.

    “As you know, Nigerians are very ingenious. And we created a whole new line of business for people that we never envisaged.

    “An aspect of that is queuing, where you sell your position on the queue for money. Night crawling, where you wait till night, collect numerous cards from your friends and family and go to an ATM and empty them using different cards and then take the cash to sell.

    “So it’s been a bit stressful to be honest because we did not anticipate this kind of behaviour,” he said.

    However, Shonubi argued that numerous benefits have been achieved, including the retrieval of N2 trillion to the banking system since implementation commenced.

    He vowed that the CBN will do everything within its authority to ensure that it salvages the current situation and make the challenges become a thing of the past as soon as possible.

    Council of State gives CBN two options to address Naira scarcity

    Meanwhile, the Council of State has presented two options to the CBN with which to address the current shortage of Naira notes in the country.

    TheNewsGuru.com (TNG) reports the National Council of State asked the CBN to print more new notes or recirculate the old Naira notes to ease the current hardship being faced by Nigerians.

    However, the Council of State expressed support for the Naira redesign policy of the apex bank but stressed that the hardship on Nigerians was too much.

    Attorney General of the Federation and Minister of Justice, Abubakar Malami briefed State House reporters on the key issues after the Council of State meeting at the Presidential Villa, Abuja on Friday.

    According to Malami, the Council of State advised the CBN to urgently ensure the availability of Naira notes to douse tension and ameliorate the suffering of citizens across the country.

    “The two major resolutions that were driven by the deliberations of the Council are: one, that we are on course as far as the election is concerned and we are happy with the level of preparation by INEC and the institutions.

    “And then two, relating to the Naira redesign policy, the policy stands but the Council agreed that there is need for aggressive action on the part of the Central Bank of Nigeria (CBN) as it relates to implementation of the policy by way of ensuring adequate provision being made with particular regards to the supply of the Naira in the system,” Malami said.

    While corroborating the comments made by the Attorney General, Gov. Darius Ishaku of Taraba State said the INEC and the Inspector General of Police both gave details of their level of preparedness for the 2023 election.

    He said the governor of the CBN gave details of the Naira redesign policy as well as the merits and demerits of the policy.

    “The Governor of the Central Bank briefed us on the monetary change and issues that have arisen relating to that across the whole States of the Federation.

    ”He gave us the merits of that policy that is being implemented.

    ”What took more time was the monetary issue because of the scarcity of money in circulation but generally the view is that principally the policy was accepted.

    “But the major issue is that of implementation. So many views were proffered particularly that the CBN governor should look into making sure that the new money is available in quantum.

    ”And there were suggestions too that if the new money is not enough or printing them could be difficult, the old currency could be recirculated or pumped into circulation to ease the tension particularly for the poor people in the society who will need a little money to buy their food or drugs on daily basis,” he said.

    Ishaku said all deliberations at the Council were advisory, but the president would take the final decision.

    Gov. Babajide Sanwo-Olu, who also briefed newsmen, assured that the president would take the right decision at the end of the day for the benefit of all Nigerians.

    “All we said or discussed were advisory and the president will retire back to his office and I think with all of this advice, the executive knows what to do as we move on.

    ”I’m sure the president will make his thoughts and views known to the nation,” he added.

    TNG reports present at the Council of State meeting are former presidents Goodluck Jonathan, Yakubu Gowon and Abdulsalami Abubakar, Olusegun Obasanjo, who joined the meeting virtually.

    Chairman of the Independent National Electoral Commission (INEC), Prof Mahmood Yakubu, the CBN Governor, Godwin Emefiele, and the Inspector General of Police, Usman Baba were also present to brief the council.

    The Council of State is an organ of the Federal Government of Nigeria which advises the executive on key policy making.

    This would be the first Council of State meeting held in 2023, coming 14 days to the presidential elections and amid the twin crisis facing the economy: fuel scarcity and a cash crunch occasioned by the CBN’s Naira redesign policy.

  • Breaking: 4 months after, Senate confirms CBN Deputy Governor

    The Senate on Wednesday finally confirmed the appointment of Mr. Folashodun Adebisi Shonubi as Deputy Governor of Central Bank of Nigeria (CBN).
    TheNewsGuru (TNG) reports Shonubi’s confirmation followed a report of the committee on banking, insurance and other financial institutions on his nomination by Senator Rafiu Ibrahim.
    Senator Emmanuel Paulker seconds that the Senate do receive and consider the report of the committee on the nomination of Shonubi for appointment as the Deputy Governor of CBN.
    TNG recalls President Muhammadu Buhari had in June approved the nomination of Shonubi as Deputy Governor at the CBN subject to Senate confirmation.
    The President wrote the Senate a month after seeking confirmation of Shonubi. The letter was read by the Senate President, Bukola Saraki, after a one-hour closed-door session.
    The Senate, however, proceeded on an annual recess, suspending the confirmation of Mr. Shonubi. Also billed for confirmation before the Senate went on the recess, is the confirmation of Dr Muiz Adeyemi Banire as Chairman of the Board of Assets Management Corporation of Nigeria.
    Shonubi was the Managing Director of the Nigeria Inter-Bank Settlement System Plc (NIBSS) – the financial payments, facilitation and settlement platform.
    NIBSS has been instrumental to the growth in electronic payments in the Nigerian financial industry.
    Mr. Shonubi holds double Masters Degrees respectively in Business Administration and Mechanical Engineering, from University of Lagos.
    He is a resourceful Information Technology-driven banker with over 22 years professional experience.
    Prior to his appointment as the Managing Director of NIBSS Plc., Mr. Shonubi was Executive Director, Information Technology and Operations at Union Bank of Nigeria Plc; a member of the Board of Union Homes and Director, Information Technology and Corporate Services in Renaissance Securities Nigeria limited, with responsibility for the Group’s IT infrastructure in Africa.
    Mr. Shonubi also had a stint with Citibank Nigeria Limited as its Head, Treasury Operations (1990-1993).
    Between 1999 and 2007, he worked in MBC International as Deputy General Manager and supervised their IT operational platforms. He served in First City Monument Bank Limited as Vice – President and in Ecobank Nigeria Limited as Executive Director.
    He has served on a number of sub-committees of the Bankers’ Committee, including the Ethics and Professionalism sub-committee.
    The nomination of Mr. Muiz Banire Adeyemi By President Buhari for appointment as Chairman of the governing board of the Assets Management Corporation of Nigeria (AMCON) was also confirmed.