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Tag: Remittance

  • CBN records $553m remittance inflows for July

    CBN records $553m remittance inflows for July

    The Central Bank of Nigeria (CBN), says it recorded a significant increase in remittance inflows of 553 million dollars in July.

    According to a statement issued by CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, the all-time high remittances represents a 130 per cent increase from the corresponding period in 2023.

    Sidi-Ali said that the figure represented the highest monthly total inflows on record, and reflects ongoing efforts by the apex bank to enhance liquidity in Nigeria’s foreign exchange market.

    According to her, the substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market.

    “These measures include granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to Naira liquidity for IMTOs.

    “Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.

    “The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year,” she said.

    She said that the increase in remittances was a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market.

    The director said that it was an indication of efforts to strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.

    “Recent data from the National Bureau of Statistics (NBS) showed that Nigeria’s year-on-year headline inflation rate slowed in July for the first time in 19 months.

    “This is a clear indication that the CBN’s monetary policy tightening measures are delivering results.

    “The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market,” she said.

    Sidi-Ali said that the apex bank would continue to monitor market conditions and adjust policies as necessary to enable greater remittances flow into Nigeria.

  • NUPRC issues ultimatum on 3% remittance to oil communities

    NUPRC issues ultimatum on 3% remittance to oil communities

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has threatened to revoke the licences of oil operators or settlors who failed to remit the three per cent statutory fees to oil communities before September ending.

    The NUPRC management on Friday said its attention had been drawn to the agitation by host communities in the oil and gas producing areas of the Niger Delta region over the delay by industry settlors/operators in remitting the statutory fees.

    A statement signed by the Commission’s Chief Executive, Mr Gbenga Komolafe, said the three per cent remittance was governed by Section 235 of the Petroleum Industry Act (PIA), 2021.

    The relevant section states that failure by any holder of a licence to comply with its obligations under this Chapter, may be grounds for revocation of the applicable licence.

    “Therefore, defaulting operators (settlors) under PIA 2021 (section 235) are advised to do the needful by fulfilling their obligations and remitting the outstanding arrears without further delay.

    “As the commission might be compelled by emerging circumstances to fully apply the law under section 235 of PIA 2021.

    “Notice is hereby served that in a situation where defaults are not remedied by the end of September 2023, the Commission would have no option but to revoke the licence of the defaulting settler/operator,” said  the statement.

    The commission said it understood the sentiments of the host communities, especially as the PIA had suspended and replaced existing provisions with a new Host Community Development Trust Fund (HCDTF).

    The old provisions are; Global Memorandum of Understanding (GMOU) and the Memorandum of Understanding (MOU).

    The Commission said it was fully aware of the implications of the development if allowed to fester.

    It said the agitation might frustrate the Commission’s efforts at up-scaling the drive for higher foreign exchange and attracting Foreign Direct Investment (FDI) into the country.

    Incidentally, it said it was also capable of truncating efforts at stabilising the value of the Naira, attaining the much-desired rebound in the national economy and improving the country’s macro-economic status.

    “The statutory provision of the PIA regarding the annual contribution of operators in the industry, under Section 240 (2) of the PIA, 2021, is very clear.

    “And it states: Each settlor, where applicable through the operator, shall make an annual contribution to the applicable host communities development trust fund.

    “It should be an amount equal to three per cent of its actual annual operating expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities for which the applicable HCDT fund was established.

    “Given the implications of allowing continued default on sustained peaceful operations and the eventual effect on national oil and gas output.

    “The Commission will be minded to activate its regulatory powers in line with PIA’s provisions as stated above, to bring defaulting recalcitrant settlors into compliance,” said the statement.

    The NUPRC management said it recently passed the Host Community Regulation and organised a sensitisation programme, emphasising the responsibility of settlors under the PIA, 2021, but those concerned had neglected this, thereby stoking avoidable agitations.

    “The settlors are, therefore, required to perform their obligation to commence remittance of the statutory three per cent contribution,” it added.

    It stated that remittance of the statutory contribution, which should have served as succour to the host communities, had sadly become a source of pain to the lawful beneficiaries.

    This, it said, had given impetus to actions that might affect smooth upstream operations within affected host communities, a situation that could have been addressed through routine social inclusion.

    It further said although the ultimate regulatory sanction, as enshrined in Section 238 of the PIA, was the revocation of assets, but it had been careful in applying it.

    It said this was to avoid compounding the already low level of investment and divestment rate and further impact negatively on production levels and revenue.

    It said, rather, it chose to draw a balance and be strategic in implementing the provisions of the law.

  • State Attorneys-General drag Buhari’s minister to court over remittance of recovered funds

    State Attorneys-General drag Buhari’s minister to court over remittance of recovered funds

    The 36 states of the country have filed a suit at the Supreme Court against the Federal Government on the status of recovered funds and failure to remit same to the federation account.

    Through their Attorneys-General, who are listed as plaintiffs in the suit, the 36 states instituted the action against the Attorney General of the Federation, Abubakar Malami.

    In the suit, the plaintiffs are seeking a declaration by the provisions of 162 (1) and Section 162(10) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), all income, returns, proceeds, or receipts derived from confiscated, forfeited and/or recovered assets constitute revenue must be remitted to the federation account for the collective benefit of the Federal, State and Local Governments.

    Amongst other things, they are also seeking a declaration that the failure and/or refusal of President Muhammadu Buhari, the Minister of Finance, the office of the AGF, and the Accountant-General of the Federation, and all her relevant authorities and/or agencies of the federation to remit the receipts, income, returns or proceeds derived from all assets recovered, seized, confiscated and forfeited into the federation account to be distributed in accordance with the provisions of the Constitution” is unconstitutional.”

    They also asked the court to declare that “it is unconstitutional for the President, through the federal Minister of Finance, the AGF, or any other authority whatsoever, to utilise, apply, allocate, expend and appropriate same to itself or distribute same in any other manner howsoever without due allocation from the federation.”

  • Four years after: MDAs yet to remit N1.2trn-Fiscal Responsibility Comm Boss

    Four years after: MDAs yet to remit N1.2trn-Fiscal Responsibility Comm Boss

    …says comm identified 46 offences but Act has no provision for punitive measures

    By Emman Ovuakporie

    Executive Chairman of the Fiscal Responsibility Commission, FRC, Victor Muruako on Wednesday said Ministries Departments Agencies, MDAs, have failed to remit N1.2trillion for the past four years to the Federal Government.

    TheNewsGuru.com, TNG reports many MDAs still persist in defaulting and practically keeping money away from the Federal Government’s reach for funding its budgets.
    Speaking at an ongoing press briefing in the National Assembly, the FRC boss stated that:
    “Our records indicate that over N1.2trn is still in the hands of defaulting MDAs.
    “These figures are confirmed from our analysis from annual audited financial reports submitted to our commission by the concerned agencies.

    “Much more is yet out there in the hands of the MDAs that either have failed to dutifully audit their accounts or that have done so but choose not to forward copies of their financial reports to the commission as required by law.

    He also lamented that”in the Act establishing the commission, 46 offences were identified but no punitive measures attached.

  • CBN strengthens dollar supply with new rules on domiciliary accounts, remittance

    CBN strengthens dollar supply with new rules on domiciliary accounts, remittance

    Worried by the poor dollar supply in the Nigerian economyy, the Central Bank of Nigeria (CBN) has introduced new rules that allow beneficiaries of diaspora remittance and transfers into domiciliary accounts to receive their money in foreign currency.

    Previously, beneficiaries of diaspora remittance can only receive in cash the naira equivalent of the amount transferred.

    Also foreign currency cash withdrawal from domiciliary accounts was restricted to money paid into such accounts by cash lodgements.

    Announcing the policy change yesterday, CBN’s Director, Trade and Exchange Department, Dr. O Nnaji, said the new rules were to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, as well as to ensure the stability of the foreign exchange market.

    He said the removal was also consequent on the improved capabilities of the apex bank to monitor transactions, forestall money laundering and prevent the adverse effect of dollarization in the economy.

    He stated this in two circulars to authorised dealers and the general public, titled, “Amendment to procedures for Receipt Of Diaspora Remittance”, and Operations of Domiciliary Account.

    He said: “In an effort to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, the Central Bank of Nigeria (CBN) wishes to announce as follows.

    “Beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.

    “Such recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account.

    “These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora Remittances into Nigeria.

    “In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market reflective exchange rate for their inflows.

    ‘All Authorized Dealers and the general public should note that beneficiaries shall have unfettered access and utilization to such foreign currency proceeds, either in cash and/or in their Domiciliary Accounts, in line with our circular TED/FEM/FPC/GEN/01/010. Please ensure strict compliance and be guided accordingly.”

  • AGF, Emefiele to appear before Reps over N33bn pension fund remittance

    The Governor of Central Bank (CBN), Godwin Emefiele and the Accountant-General of the Federation (AGF), Ahmed Idris are to appear before the House of Representatives on Tuesday.

    The duo are to clarify alleged remittance of N33b pension deductions to the Federal government by PenCom before the House of Representatives ad hoc Committee investigating alleged irregularities in National Pensions Commission (PenCom)

    According to the Chairman of the Committee, Johnson Agbonayinma said noticeable discrepancies in the pension deductions claimed to have remitted by the Acting Director-General (DG) of PenCom, Aisha Dahir-Umar made the appearance of the two critical to the investigation.

    While appearing before the Committee at the public hearing yesterday, the Nigerian Union of Contributory Pensioners (NUCP) indicted PenCom and Pension Fund Administrators (PFAs) of several infringements.

    In its presentation, the group regretted that the new pension scheme has compounded, rather than alleviating problems faced by retirees under the Contributory Pension Scheme.

    U.C. Ekpo and Emezuru Eugene signed the memorandum where PenCom was accused of failing to review contributors’ pension every five years as provided in Section 173 (3) of the 1999 Constitution (as amended).

    The Union also observed persistent delays in payment of retirees’ benefits to over two years as well as lack of standardized template and transparency in computation of lump sums paid after retirement.

    PenCom was also faulted for gender inequality in the payment of lump sums in contravention of the Pension Reform Act.

    While calling on PenCom to confine itself to its functions as a regulator rather than meddling in the union’s activities, the Union noted that “It appeared the essence of the new pension scheme is to create capital for the Pension Fund Administrators (PFA) to maximize profits and enrich themselves.

    “Worse still, PenCom, which is empowered to strictly enforce the Pension Reform Act in regulating the activities of PFAs and Pension Custodians, has become a violator of the same Act in many ways.

    “The sum total of anomalies and injustices perpetrated by PenCom in its implementation of the Contributory Pension Scheme leads to suffering, pain and premature death of pensioners in Nigeria.”

  • Buhari orders probe of past JAMB, NIMASA heads over ‘meagre’ revenue remittance

    The Federal Executive Council during its meeting on Wednesday presided over by President Muhammadu Buhari ordered the forensic probe of some government agencies.

    The exercise is to recover unremitted revenues, according to Minister of Finance Mrs Kemi Adeosun, who briefed State House correspondents at the end of the Federal Executive Council (FEC) meeting.

    With Mrs Adeosun were Minister of Water Resources Suleiman Adamu, Minister of Budget and National Planning, Udoma Udo Udoma and Special Adviser to the President on Media and Publicity, Femi Adesina.

    According to her, some of the government agencies suspected to be diverting government revenues will be made to account for the past revenues.

    She said the Joint Admissions and Matriculation Board (JAMB), which had been remitting N3 million annually, remitted N5 billion this year alone and disclosed that it had N3 billion more to remit to the government’s purse this year.

    The minister also listed past management of the Nigerian Maritime Administration and Safety Agency (NIMASA) among the offenders.

    She said: “Secondly, we spoke about revenue generation. The VAIDS Programme is ongoing and we are having quite a positive response in terms of tax compliance.

    “We also reported on the progress made by a number of our agencies some of whom have reported very significant increases in the amount paid into the consolidated revenue fund.

    “Council discussed JAMB, which recorded significant progress and NIMASA as well as others and gave us the charge to really go and look at these agencies, look in some cases the past management of those agencies and see where those agencies were leaking and to encourage agencies that haven’t done so to continue with efficiencies,” she said.

    Asked to disclose the figures expected from the agencies, Mrs Adeosun said: “The highest amount that JAMB has ever remitted to the consolidated revenue fund before this management was N3 million. This year, so far, they have done N5 billion and the Minister of Education reported that they have additional N3 billion that they are ready to remit, which will take this year’s figure alone to N8 billion.

    “Now they have not increased their charges nor their fees. So the question that Council members were asking was that where were all these monies before?

    “So the directive was given that we must call those who were the heads of those agencies and similar ones to account and that is what we intend to do.”

    She added: “It’s a similar story with other agencies and these are the leakages which we are now blocking. These are the monies in the consolidated fund that is now being applied in the projects that really need to get the economy moving. These are the monies that are missing that has led us to the position we are in. It is the grandest looting that this administration action has come in to address.”

    The minister also disclosed that FEC approved for Nigeria to rejoin the African Trade Insurance Agency.

    She said: “This is an agency that is out to provide risk guarantee for private investors coming into Nigeria as well as exporters from Nigeria.

    “It will provide risk guarantees, so instead of projects asking for sovereign guarantees, we will be able to provide that risk mitigation through the African Trade Insurance Agency. Many other countries are already members, so Nigeria will also be joining.

    “This agency has an A rating international and is able to guarantee long term projects. So, what we see as a result of this is that there will be increased level of investments particularly PPP where every often the investors want some guarantee from the government. Instead of the government issuing sovereign guarantee directly, this agency will step in and issue it. It is very similar to MIGA, the Multi-lateral Insurance Guarantee Agency that is owned by the IFC.”

    She went on “My second activity was part of the briefing on the economy and to speak to the fiscal conditions and outlook.

    “As you know, we are on the part way of resetting the economy and adjusting permanently to a sort of lower oil pricing.

    “The recent announcement of the exit from recession we see as statically backed indicator that we are moving in the right direction.

    “We recognised that there is a lot to be done. I briefed the council on various fiscal initiatives that we are pursuing. These include continued fiscal consolidation and cost efficiency, driving cost savings in government; there is still a great need to do so.

    “I have some progress report on the work we have done with payroll where we are still seeing contraction. Every time we put agencies into our automated payroll system we see contraction and we intend to continue with that.

    “So, in summary, the outlook is positive. We did some comparative analysis in June 2014 with oil price of $109, federation allocation was N844 billion and in June 2017 it was down to N318 billion, just to give you an idea of how much income the country has really lost in the last few years.

    “So, we are adjusting very strongly and we believe if we continue with this trajectory not only will we stay permanently out of recession but, more importantly, we will have a positive and growing economy what works for all Nigerians which is our aim.” she said

    Udoma Udo Udoma said his ministry briefed the Council on the recent 2017 Second Quarterly Report of the National Bureau of Statistics (NBS).

    He said: “We were encouraged by the GDP growth rates. The report is very encouraging for the government as it shows that we are on the right direction.”

    The Minister of Water Resources disclosed that he briefed FEC on floods and possible threats of flood.

    He said there was no threat of flood in the country.

    The Ministry has observatory units in Niamey and Lokoja, he said, adding: “If there is any indication of significant rise or threat to lives and properties, we will promptly issue warning alerts.

    “For now, there is no cause for alarm. We cannot stop the flood but we can provide early warnings.”

  • TSA: Court orders remittance of ‘N249.6b hidden in seven banks for unknown govt officials’

    A Federal High Court in Lagos on Thursday ordered seven Nigerian banks to remit to the Federal Government $793,200,000 (about N249,659,700,000.00) allegedly hidden with them in breach of the Treasury Single Account (TSA) policy.

    A vacation judge, Justice Chuka Obiozor, made the interim order following an ex parte application by the office of the Attorney-General of the Federation (AGF).

    The judge warned that the remittance order would be made permanent on August 8, unless cause was shown why it should not.

    The AGF, through his counsel, Prof. Yemi Akinseye-George (SAN), accused the commercial banks of illegally keeping the sums in their custody for “unknown government officials”.

    Justice Obiozor ordered the banks to remit the money to the designated Federal Government’s Asset Recovery dollars account domiciled with the Central Bank of Nigeria (CBN).

    The banks are United Bank for Africa (UBA), Diamond Bank Plc, Skye Bank Plc, First Bank Limited, Fidelity Bank Plc, Keystone Bank Limited and Sterling Bank Plc.

    According to court processes filed by Akinseye-George (SAN), $367.4m was hidden by three government agencies in UBA; $41m was kept in a National Petroleum Investment Management Services (NAPIMS) fixed deposit account with Skye Bank.

    The documents stated that $277.9m was in Diamond Bank, $18.9m in First Bank, $24.5m in Fidelity Bank, $17m in Keystone Bank, and $46.5m in Sterling Bank.

    The AGF’s application was supported by a 15-paragraph affidavit deposed to by a lawyer from Akinseye-George’s law firm, Vincent Adodo.

    Adodo averred that the banks colluded with Federal Government officials to hide the funds in breach of the TSA policy.

    The funds, he stated, were revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariffs etc accruable to the Federal Government from ministries, departments, parastatals and agencies.

    Adodo said the banks failed to remit the funds to the TSA domiciled in the CBN in violation of the guidelines issued by the Accountant-General of the Federation, which fixed September 15, 2015 as the deadline for such funds to be moved.

    “The 1st to 7th respondents (banks), in collaboration with and/or collusion with unknown officials of the Federal Government, conspired to disobey the relevant constitutional provisions, thereby depriving the Government of the Federal Republic of Nigeria of funds belonging to it, which are needed urgently to fund pressing national projects under the 2017 budget,” Adodo said.

    Among the allegedly culpable government agencies is the National Petroleum Developing Company (NPDC).

    Moving the ex parte application yesterday, Akinseye-George said it would best serve the interest of justice for Justice Obiozor to order the banks to remit the funds to the Federal Government, to prevent the funds from being moved or dissipated.

    “The withheld funds are urgently required for the implementation of the 2017 budget. The budget has a lifespan of 12 months and we are already in the middle of the year.

    “By hiding these hidden funds, the Federal Government is being forced to borrow money from these commercial banks at exorbitant interest rates,” Akinseye-George added.

    After listening to the SAN, Justice Obiozor granted the interim orders.

    He directed that the order should be published in a national daily newspaper.

    The judge adjourned till August 8 “for anyone interested in the funds to appear” before him “to show cause why the interim orders should not be made permanent”.