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JUST IN: Crypto exchange, OKX, discontinues services in Nigeria

by Folarin Kehinde
written by Folarin Kehinde

Cryptocurrency exchange, OKX, has announced plans to discontinue its services in Nigeria, citing recent changes in local laws and regulations.

The exchange, in a statement sent directly to its users on Wednesday, said this decision was based on its ongoing assessment of policies in the markets it serves.

“We are discontinuing OKX services in Nigeria after recent changes in local laws and regulations.

“From August 16, 2024, our customers will no longer be able to open any new positions or access any services on the platform, with the exception of withdrawals and closing/redemption of open positions,” the statement read.

OKX asked its users to review their accounts and provided steps to retrieve their assets.

The company said from August 16, users “will only be able to withdraw your assets; you will not be able to deposit or transact otherwise.”

“While your funds remain secure and accessible in your account, we highly encourage you to withdraw them to your private wallet or your accounts on other third-party platforms by 12:00 am (PST) on August 30, 2024.

“After August 30, 2024, you will have to reach out to our customer service teams for any account related actions. We strongly encourage you to withdraw or transfer funds prior to this date, as remaining balances may be subject to further restrictions in accordance with our Terms of Service along with local laws,” the statement concluded.

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Economic hardship: Passengers opt for road travel as plane tickets rise to over N150,000

by Folarin Kehinde
written by Folarin Kehinde

Due to a continuous surge in airfares, many passengers travelling from Lagos to various destinations such as Abuja, Port Harcourt, Kaduna, Owerri, and Kano are increasingly switching to road travel.

Over the past year, the average price for a one-way airline ticket has surged by more than N150,000.

BusinessDay’s calculations indicate a 180.4 per cent increase in the average price of a one-way trip from Lagos to Abuja, now costing N143,000 compared to N51,000 last year.

The Abuja to Port Harcourt route has seen an even steeper rise, with prices jumping 389.85 per cent from N45,000 in 2023 to N220,434.

Similarly, a one-way ticket from Abuja to Enugu, which was N90,000 in 2023, now exceeds N200,000, especially when booked on short notice.

Charles Orizu, a businessman and frequent traveller, said, “I now take night buses to Abuja from Enugu due to the high cost of airfare. Before now, I rarely travelled by road.”

He noted that Air Peace charges N200,000 for a one-way trip from Enugu to Abuja, which is unaffordable for him.

Emmanuel Kunaiyi, another frequent traveller, has reduced his air travel due to the high ticket prices.

“Flight tickets are extremely high. I understand that airlines are battling the high cost of aviation fuel, but it is still ridiculously high for an average Nigerian,” he said.

Sarah Wilson, a University of Uyo student from Lagos, has stopped flying to school because of the airfare hike.

Amaka Anagor, a businesswoman, expressed her frustration, stating, “I can no longer travel by flight to Owerri with my family because of the cost of tickets, which are unaffordable for me. I would rather travel by road, which is less expensive.”

Praise Ujunwa, an educator and regular traveller, recalled paying N27,000 for a ticket in December 2020. By May 2024, the price had escalated to N90,000 for a one-way trip from Uyo to Abuja.

She lamented the cost, noting that a round-trip would now require nearly half a million naira, making it unaffordable for the average Nigerian.

Airlines operating in Nigeria face high aviation fuel costs, which have risen from N230-N250 per litre last year to above N600 per litre across all airports.

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Business

Access Bank Targets Top 20 Position in UK, $1bn Profit by 2027

by Folarin Kehinde
written by Folarin Kehinde

Access Bank, sub-Saharan Africa’s largest bank by customer base, has shared insights about ambitious plans to position its UK subsidiary, Access Bank UK, among the top 20 banks in the United Kingdom, targeting an annual profit of $1 billion by 2027.

This was disclosed by Roosevelt Ogbonna, the Managing Director/Chief Executive Officer of Access Bank, during the “Facts Behind the Rights Issue” presentation held at the Nigerian Exchange (NGX) office in Lagos.

Ogbonna emphasised that this projection underscores Access Bank’s commitment to becoming a global banking leader, focusing on expansive growth and robust financial performance.

“We are positioning ourselves to be one of the most respected banks globally. Our focus is on superior service across all the continents and countries we are operational in, and by 2027, we aim to be one of the top five African banks, powering trade across the continent and providing superior services to our customers,” Ogbonna stated.

The CEO further highlighted that Access Bank’s customer base is expected to grow to 125 million by 2027, further cementing its market leadership. This ambitious growth plan is part of the broader strategy to drive organic growth through strategic acquisitions, partnerships with international banks, and substantial investments in infrastructure and technology.

The insights were shared as part of discussions around Access Holdings’ ongoing Rights Issue, which aims to raise up to US$1.5 billion to strengthen its financial position and support its growth ambitions. The rights issue offers 17,772,612,811 ordinary shares at N19.75 per share and will close on August 14, 2024.

The Fact Behind the Rights Issue was attended by the stockbrokers, shareholders, NGX management, Access Holdings’ executive and management, the media, amongst others. The shareholders gave their vote of confidence in Access Holdings and Access Bank, and particularly, the Rights Issue.

Bisi Bakare, National Coordinator, Pragmatic Shareholders Association of Nigeria, noted, “Since Access Bank first started trading on the stock exchange at N0.65, we shareholders have witnessed its incredible growth and accrued immense value, with the stock now trading at N19.35 as of June 9.”

“Access Holdings can be confident that as the consolidation phase of the Group’s expansion fully takes shape and the brand’s profitability continues to increase, those of us who have been on this journey from the beginning are not about to jump off now. We fully back the capitalisation plans, starting with the Rights Issue, and are excited for the future that lies ahead for Access Holdings,” Bakare added.

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“Nigerian public officials received N721 billion in bribes in 2023” – New report reveals

by Folarin Kehinde
written by Folarin Kehinde

A new report by the National Bureau of Statistics (NBS) has revealed that Nigerian public officials received N721 billion in bribes in 2023.

The report, titled “Corruption in Nigeria: Patterns and Trends,” was released on Thursday and states that the amount paid in bribes constitutes about 0.35 per cent of Nigeria’s Gross Domestic Product (GDP).

The findings, based on a survey conducted with the United Nations Office on Drugs and Crime, highlight that the average cash bribe in 2023 was N8,284, up from N5,754 in 2019.

However, the report noted that this increase does not account for inflation, making the inflation-adjusted average cash bribe 29 per cent smaller than in 2019.

The report reads, “Overall, it is estimated that a total of roughly NGN 721 billion (US$1.26 billion) was paid in cash bribes to public officials in Nigeria in 2023, corresponding to 0.35 per cent of the entire Gross Domestic Product of Nigeria.”

According to the report, corruption was ranked as the fourth most significant problem affecting Nigeria in 2023, following the cost of living, insecurity, and unemployment.

Despite a reduction in interactions between citizens and public officials (56 per cent in 2023 compared to 63 per cent in 2019), bribery remains widespread.

On average, 5.1 bribes were paid per bribe payer, totalling approximately 87 million bribes nationwide, a decrease from 117 million in 2019.

Bribery was found to be more prevalent in rural areas, with rural residents paying an average of 5.8 bribes compared to 4.5 bribes in urban areas.

Over 95 per cent of bribes were paid in monetary form, either cash or money transfer. The report also highlighted an increase in bribes demanded by private sector actors, such as doctors in private hospitals, from 6 per cent in 2019 to 14 per cent in 2023.

Despite these trends, the report indicates a growing refusal to pay bribes among Nigerians.

In 2023, 70 per cent of those asked to pay a bribe refused at least once, with the highest refusal rates in the North-West zone at 76 per cent.

Furthermore, the percentage of citizens who view bribery requests as acceptable to expedite administrative procedures decreased from 29 per cent in 2019 to 23 per cent in 2023.

The report also sheds light on unethical recruitment practices within the public sector. Between 2020 and 2023, over 60 per cent of public sector workers were hired due to nepotism, bribery, or both.

Specifically, 27 per cent of successful candidates admitted to using only bribery, 13 per cent to only nepotism, and 19 per cent to both. In contrast, 40 per cent of candidates claimed to have secured their positions without resorting to such means.

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Proposed 90,000km fibre project will face severe challenges, Telecoms stakeholders tells FG

by Folarin Kehinde
written by Folarin Kehinde

The federal government has been told that its planned deployment of 90,000 kilometers of fibre optic cables across the country will face several obstacles.

Stakeholders in the telecommunications industry said the state governments might truncate the project.

The stakeholders believe that without addressing the current issue of Right of Way charges, multiple taxation, and levies, which are under the control of state governments, the project which is to be implemented through a Special Purpose Vehicle (SPV) would be an exercise in futility.

They made their position known during the Sixth Edition of the Policy Implementation Assisted Forum (PIAFO) in Lagos on Wednesday, which was a focus on Nigeria’s renewed strategic agenda for the digital economy.

They stressed the need to ensure the successful implementation of the project which was announced recently by the Federal Government to complement existing connectivity for universal access to the internet across Nigeria and provide the Nigerian digital economy with the backbone infrastructure it needed.

Executive Director of Broadbased Communications, Mr. Chidi Ibisi, who presenting a paper on the topic, ‘Harmonizing Nigeria’s Fibre Deployment Strategies for Effective Implementation’, said while the government’s SPV initiative was a good plan that could help the country bridge its current digital infrastructure gap, the government would need to address current challenges.

According to him, “The issues of high cost of Right of Way (RoW), destruction of fiber by road construction companies and vandals all need to be addressed for this new SPV initiative to be successful.”

Highlighting some of the challenges telecom operators faced when deploying infrastructure, the Group Chief Operating Officer of WTES Projects Limited, Mr. Chidi Ajuzie, said the biggest challenge to fibre cable laying in Nigeria is the informal RoW by hoodlums in states.

“For states, a formal right of way is set and some states are adopting it but the informal side of the right of way is where the complexity has come today.

“If I’m trying to lay fibre in some communities here in Lagos, the first thing that happens is the so-called land owners (omo onile) come out and a different set of people will keep coming from one street to another and they charge you.

“How do we achieve adequate broadband infrastructure in this kind of situation?” He asked.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) Engr. Gbenga Adebayo, pointed out that for the 90,000 kilometres fibre project to succeed, the state governments have to take ownership.

“For the project to succeed, I think the governments at sub-nationals should take ownership. This issue of state governments seeing right of way as IGR should be a thing of the past. We can’t talk about the digital economy on one side and the government is seeing those who provide the services as sources of revenue.

“The government has always come up with good policies, but the implantation, particularly when they are tested far afield, is the biggest problem. Governors will go to Abuja and say ‘in my state, I will give the right of way free of charge.’

“When you go to such a state, they may give you the right of way for zero or one Naira, but they will give you developmental levy, education levy, state impact levy, ecosystem levy. When you add all of these together, it is more than the right of way charges. So, who is playing who?” He queried.

Dr Ayotunde Coker, the Chief Executive Officer of Open Access Data Centre (OADC) stressed the need for the fibre project to be executed by the private sector even as the World Bank is expected to fund it with up to $3 billion.

“the World Bank can put money into the government but it needs private sector partnerships as the execution engine and that’s what we’ve been pushing in Africa.

“The key thing is that when the World Bank puts the money in, it should engage the private sector, figure out the policies that it needs to do and enable the private sector to execute them effectively and make it as open as possible. With that, they can achieve what they are trying to achieve,” he said.

He further stressed that for the success of the project, Nigeria should learn lessons of what didn’t work in the past, to achieve the new broadband penetration targets with the fibre range that is required.

“Meaningful broadband is what we need, rather than just a huge set of megabits per second implementation. We need superhighway fibres. We need the distribution of these backbone that allows us then to fan out,” he said.

He further urged state governors to be part of the project by providing an enabling environment for infrastructure roll-out, adding: “if you are a state governor and didn’t participate in it, the state won’t grow and it’s going to impact your state.”

The convener of PIAFo, Mr. Omobayo Azeez, said the conference was to create a midpoint dialogue platform for digital economy stakeholders across both the public and private divides to brainstorm, exchange perspectives, clear grey areas, harmonize thoughts and create a sense of collective responsibility towards accelerating our collective prosperity through technical efficiency.

The event focused on Nigeria’s renewed strategic agenda for the digital economy.

According to him, the new digital economy blueprint of the federal government does not only sustain existing policy directions, “it also challenges us on the possibilities of attaining new frontiers.”

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Business

BREAKING: FG suspends tax, import duties for maize, wheat, brown rice

by Folarin Kehinde
written by Folarin Kehinde

The Federal Government on Monday announced the suspension of duties, tariffs and taxes for the importation of some food items through land and sea borders.

The foods include maize, husked brown rice, wheat, and cowpeas.

Abubakar Kyari, the Minister of Agriculture and Food Security, disclosed this while announcing a 150-Day Duty-Free Import Window for food commodities.

Speaking at a press conference in Abuja, Kyari said: “150-Day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.

“Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).

“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.

“In addition to the importation by private sector, Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi processed state will target supplies to the small-scale processors and millers across the country.”

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JUST IN: Again, Tapswap postpones token allocation

by Folarin Kehinde
written by Folarin Kehinde

A popular tap-2-earn app, Tapswap, powered by TON Blockchain, has said the token allocation to users has been postponed to quarter three of the year.

The app, which required users to repeatedly tap the icon in the centre of the Telegram Tapswap bot screen to mine coins, recently gained momentum among Nigerians tapping on their phone screens in pursuit of financial earnings and has amassed over 50 million users since it launched on February 15, 2024.

The management said it decided to move the share-to-token exchange event scheduled for July 1st to the third quarter to better serve its players.

In a series of threads created on X, on Monday, to share what it described as ‘bad and good news’ for its players, the management said it is in active talks with tier 1 exchanges around the world to price the highly ranked game from the prey of scammers and leaders in web3 industry who are moved by the successes the game had attracted.

“We’ve got some bad and really good news for you at the same time: our team has decided to move the date for the Shares-to-Token exchange event. You might wonder, what’s good about that? Just FUD?

“Not exactly. The whole point is that you’ll benefit from this. Let us explain how:

Recently, there’s been a lot of buzz around Tapswap, especially about listing on tier 1 exchanges, a massive drop, and more. And it’s no surprise: the project has become one of the major players globally, ranking at the top. This kind of attention attracts not just scammers but also leaders in the web3 industry.

“So, not all rumours are just rumours. The Tapswap team is actually in active talks with tier-1 exchanges!

And they are thrilled with you – our community! Isn’t this what we’ve been tirelessly working towards together?”

The management further reiterated its effort to devote a high level of attention to the task, which requires much more detailed work on tokenomics and the right launch strategy.

“However, this success comes with some ‘inconveniences’. This level of attention requires much more detailed work on tokenomics and the right launch strategy. And that means extra time.

“But know that this is all to ensure that our launch in Q3 is fair and, more importantly, profitable for all of you who stand by us no matter what,” it added.

Tapswap, however, charged its players to be happy about the bigger news in the future while appreciating the support and feedback gotten from them.

So, as you can see, there are plenty of reasons to be happy about this change. And very soon, we’ll give you some even bigger news about our future, tier 1 partnerships, and the drop itself!

We really value your support. And we truly listen to your feedback, so don’t forget to share it in the comments. Together, we’ll keep reaching higher and higher levels!

Leading reporters reports that Tapswap postponed its token launch date, which was scheduled for July 1st, indefinitely.

This was disclosed by the Head of Communications of the gaming firm, John Robbin, on June 20, 2024.

Before the aforesaid disclosure, it announced that its coin allocation date would be July 1st after it couldn’t establish a date in May because of too many bot accounts that they are working on separating from the authentic gamers.

According to Robbin, the method of token allocation has not yet been ascertained, stressing that the processes cannot be communicated before the allocation.

“The token launch was postponed from July 1. The new date will be communicated.

“We will allocate a significant part of the tokens to the community to retain the tappers. We want you all to be part of the tapswap community.

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Employment scam in MINT: Group petitions CBN, National Assembly, CCB, others: CBN Deputy Governor Emem Usoro; her aide Olakunle Abiola indicted Leading Reporters
Business

CBN hosts dialogue with NESG, Organised Private Sector

by Folarin Kehinde
written by Folarin Kehinde

….…focus on boosting economy

The Central Bank of Nigeria (CBN) has hosted a dialogue between the Organised Private Sector (OPS) and the Bank’s leadership to explore strategies for enhancing Nigeria’s financial sector.

The meeting held at the Bank’s Lagos office on Wednesday, June 19, 2024, focused on exploring how broad-based monetary policy communication and guidance can positively influence the global investment community’s perception of Nigeria and on determining the right bundle of monetary policies and interventions to increase the productive sector’s growth.

In addressing the need for improving monetary policy communication and guidance to positively influence the global CFO and investing community’s perception of Nigeria, the CBN Governor, Mr. Olayemi Cardoso emphasised the importance of private sector input in shaping economic policy. “The private sector is a critical engine of our economy,” he said. “This meeting underscores our commitment to working collaboratively with stakeholders to create a more robust and investor-friendly financial environment.”

Stakeholders at the meeting also pledged to establish a framework for collaboration and consistent interactions with the top leadership of the OPS to harmonise economic policy and guarantee the CBN’s effective support of the private sector in partnership with the Nigerian Economic Summit Group (NESG).

The CBN Governor also presented a detailed explanation of the economy’s trajectory, highlighting the deceleration of month-on-month inflation and expectations of moderation. He also said the Bank would continue improving monetary policy communication through forward guidance to domestic and global investors.

The CBN Governor also assured the private sector leaders of their commitment to building trust, ensuring price stability, and implementing monetary policies to support economic growth, improve stability in foreign exchange rates, and effectively moderate inflation.

He assured them that despite current drawbacks, the Bank had consistently improved FX supply while protecting the interests of all parties. In addition, he stressed the importance of restoring confidence and trust in the Nigerian economy for all investors, local and foreign.

Mr. Cardoso also noted that the policy measures deployed by the CBN aim to build a transparent economy that will boost investors’ confidence and improve the country’s business environment.

The CBN presented a detailed explanation of the economy’s trajectory, the reasons behind the recent aggressive Monetary Policy Rate hikes, and the expected transmission timeline into the economy. It also highlighted the deceleration of month-on-month inflation and expectations of moderation in headline inflation going into the third and fourth quarters of 2024.

In his remarks, the President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, appreciated the CBN’s open dialogue and interest in ensuring the manufacturing industry and other organised private sectors are abreast of CBN policies.

He said the OPS was concerned about how the price verification system is currently operated and, in agreement with the CBN, will provide the CBN with specific details about the concerns and suggestions for implementable improvements to the system.

During the discussions, other private sector leaders expressed concerns about the elevated impact of macroeconomic risks on business costs across various industries. They noted that while structured development finance support may not directly increase cash supply, it enhances the capacity of the productive sector to manage risks such as exchange rate volatility. They also emphasised the importance of the role of the Central Bank of Nigeria in catalysing trade finance and development finance support through traditional institutions.

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CBN makes fresh clarification on license revocation of four major banks

by Folarin Kehinde
written by Folarin Kehinde

The Central Bank of Nigeria (CBN) has denied plans to revoke the operating licenses of four major banks in the country – Fidelity, Polaris, Wema, and Unity Banks.

In a statement released on Monday, June 10, the CBN’s acting director of Corporate Communications, Hakama Sidi Ali, reassured the public of the safety of their deposits and the resilience of the banking system.

According to her, key financial soundness indicators remain within current regulatory thresholds.

Mrs. Sidi Ali addressed the misinterpretation of a January 10, 2024 circular announcing the dissolution of the Boards of Union, Keystone, and Polaris Banks, which is being misrepresented as a new directive. She clarified that this is an old notification and not a recent development.

The CBN spokesperson also dispelled rumours of further license revocations before the completion of the bank recapitalization exercise, labelling them unfounded and aimed at causing unnecessary panic.

“Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient,” Mrs. Sidi Ali said.

She urged customers, especially those of Heritage Bank, not to worry about the safety of their deposits, as the Nigeria Deposit Insurance Corporation (NDIC) has already begun payments to the bank’s insured depositors.

Mrs. Sidi Ali further encouraged the public to continue their regular banking activities without worry.

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Nigerians lament failed transaction as ‘NIBSS suffers downtime’

by Folarin Kehinde
written by Folarin Kehinde

The Nigeria Inter-Bank Settlement System (NIBSS) is experiencing a downtime, leading to delays in completing electronic transactions.

Financial technology firms (fintechs) notified customers of the disruption in transactions in separate notices seen by TheCable on Wednesday.

The NIBSS instant payment platform is an account-based, real-time electronic funds transfer (EFT) system.

It enables financial institutions to provide online real-time funds transfer services to their customers through all available electronic channels.

Leading reporters understands that customers are having a hard time making simple transactions like the payment of electricity bills.

A message sent to customers by Eversend, a financial technology firm, said delays in naira transactions will last for a while.

“NIBSS is experiencing some delays in processing Naira transactions, this may affect your NGN top-ups and payouts in the app,” Eversend said.

Also, Kuda Bank told customers that “NIBSS, the settlement partner for all banks, is having intermittent issues completing transfers at the moment so money sent to your Kuda account might be delayed and transfers to other banks may not be possible”.

“As the issues are being fixed by NIBBS, we’ll keep you updated on our status page – status.kuda.com,” Kuda said.

“Please, note that transfers between Kuda accounts and transfers between Kuda and PalmPay accounts are working fine.”

Other financial institutions are also being affected by the downtime.

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