Business

The Central Bank of Nigeria has dissolved the board and management of four banks in a move that is seen as the implementation of the report of the Special Investigator on Central Bank of Nigeria (CBN) and Related entities, Jim Obazee.

The banks are Titan Trust Bank, Union Bank, Polaris Bank, and Keystone Bank.

The decision to dissolve the boards was taken after a meeting between Yemi Cardoso, Obazee, and the board and management of the four banks.

The dissolution is coming after the investors in Titan Trust Bank refused to honour the invitation to a meeting with the Special Investigator.

All the four banks are involved in the special investigations on how the CBN was run under Godwin Emefiele, the former governor who was ousted soon after President Tinubu took office last May.

Union Bank of Nigeria Plc and Titan Trust Bank (TTB), is facing an uncertain future following the special investigation report on the activities of the central bank under Godwin Emefiele.

Nigerian telecommunications giant Globacom (GLO) has slammed reports accusing them of owing interconnect charges to rival MTN, calling the claims “entirely false” and a result of inaccurate fact-checking.

Earlier in the week, a public notice from the Nigerian Communications Commission (NCC) surfaced online, threatening partial disconnection of GLO over unpaid debts. The notice, signed by NCC Director of Public Affairs Reuben Muoka, stated that GLO’s failure to settle the N1.6 billion debt despite repeated attempts had prompted the action.

However, GLO, speaking to the News Agency of Nigeria (NAN) in Lagos, have now denied any debt to MTN.

“We are not owing MTN any interconnect charges,” the official stated, adding that proper cross-checking should have been done before such accusations were made.

The official further argued that GLO was a pioneer in the telecommunications industry, breaking the monopoly of foreign companies with their innovative pay-per-second billing system. He criticised the report as an attempt to smear the reputation of Nigeria’s leading indigenous telecoms company.

Globacom subscribers will not be able to make calls to MTN lines soon due to the non-settlement of interconnect charges.

The Nigerian Communications Commission disclosed this on Monday in a public notice signed by Director, Public Affairs Department, Reuben Muoka.

It stated that it granted partial approval for the disconnection of Globacom from MTN Nigeria Communications Plc.

It said, “Globacom was notified of the application made by MTN and was given the opportunity to comment and state its case.

“The commission, having examined the application and circumstances surrounding the indebtedness, determined that Globacom does not have sufficient or justifiable reason for non-payment of the interconnect charges.”

The NCC revealed that at the expiration of 10 days from the date of this notice, “subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls.

“The partial disconnection, however, will allow in-bound calls to the Globacom network.”

This is not the first time Glo subscribers will be disconnected from making calls to MTN over the same issue.

In 2019, MTN, acting upon a directive from the NCC, briefly disconnected Glo subscribers over a N4bn debt.

In December 2018, the telecom regulator approved mobile network operators to disconnect other operators over rising interconnect debts and the failure of the affected operators to pay.

The total disconnect fee in the industry at the time was about N165bn.

Interconnect charge is the price that telecom operators pay each other for calls terminating on their networks.

According to a source in MTN, Glo owes the firm about N6bn for interconnect fees.

Efforts to get Glo’s reaction are still in progress as the firm has yet to comment on the issue.

There were 61.39 mobile subscriptions on Glo’s network as of the end of August 2023.

According to the new NCC notice, these lines will not be able to make calls to MTN lines from January 18, 2024.

Foreign airlines were owed more than $700 million at the end of November.

The Central Bank of Nigeria has paid nearly $2 billion in outstanding foreign exchange forwards in the last three months in a bid to clear a backlog of dollars, but forex shortages continue to hobble the country’s naira currency.

Acting spokesperson for the apex bank, Hakama Sadi Ali, in a statement obtained by Reuters on Sunday said the CBN also recently paid $61.64 million to foreign airlines, who sold tickets in the local naira currency but have not been able to get their money out of the country.

Foreign airlines were owed more than $700 million at the end of November.

“In the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost USD 2 billion,” acting spokesperson Hakama Sadi Ali said in a statement late on Sunday.

“This underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.”

“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate,” Ali said.

Africa’s biggest economy has nearly $7 billion in forex forwards that have matured, a major concern for investors, but the bank has promised to pay up to boost confidence in the foreign exchange market.

Nigeria’s foreign currency shortages have been worsened by declining oil production, which is the country’s largest export, accounting for more than 90% of dollar inflows.

President Bola Tinubu has promised to boost foreign currency inflows into Nigeria by attracting new investment, ramping up oil production and reforming the foreign exchange market.

Jubilee Syringe Manufacturing Limited (“JSM”) located in Awa, Onna Local Government Area of Akwa Ibom state, has clarified that it has not ended its operations in Nigeria.

JSM, which was inaugurated on September 23rd, 2017, by the former Vice President of Nigeria, Professor Yemi Osinbajo, has become the market leader with its top-quality syringes in the country, in addition to creating  employment opportunities for Akwa Ibom people and other Nigerians.

However, despite the huge sum invested in the syringe factory, the management staff have been unable to meet up with its expected target, hence, the decision of the investors to restructure and reorganise the management team and the entire structures of the production lines for better profitability and sustainability.

A statement by JSM investors through the Managing Director of VKS Group of Companies, Mr. Onur Kumral,  dismissed the reports that JSM was ending its operations in the country completely. 

He explained that contrary to reports, the company is only undergoing a restructuring phase, which will only make the company experience a brief break within this period.

Kumral noted that the reorganisation of JSM is a decision of the investors, following the inability of the management to meet up with its expected targets for several years, stressing that the shake-up only affects management staff and the entire structures of the production line, which is geared towards better productivity of the company. 

He assured that the company will return to full operations soon.

The statement reads in part: “JSM is simply undertaking temporary measures to ensure the long-term sustainability of its operations. Restructuring is not new in any given business environment and sometimes you undertake reviews with sustainability in mind.

“When you set up a multimillion-dollar factory such as JSM, it is important to take a critical review of its operations and that of the management staff. JSM is a for-profit business and when expected targets are not met year after year, a shake-up is inevitable,  which is what we have decided to do.

“We want to assure our esteemed customers that there is no need to panic. We are still in business as Jubilee Syringe Manufacturing Limited and we are poised to keep to our commitment to remain as the producer of the highest quality syringes in Nigeria.

“We call on the general public and our esteemed customers to disregard insinuations in certain media outlets reporting a total shut down of JSM operations in Nigeria, we remain in business, and we will come back stronger than before.”

Lagos, Nigeria – In a somber announcement on Friday, the Institute of Chartered Accountants of Nigeria (ICAN) confirmed the demise of Emmanuel Ijewere, a distinguished figure who had served as the 32nd president of the institute from 1996 to 1997. The news was verified by Dare Muyiwa, the senior manager of the corporate communications directorate of ICAN.

“Yes, he is late,” Muyiwa reportedly informed news correspondents , shedding light on the passing of Ijewere after a prolonged battle with a terminal illness.

Emmanuel Ijewere, born in 1946, was a luminary in the Nigerian business landscape, displaying expertise in banking, finance, and agriculture. His contributions extended beyond ICAN, as he held significant roles in prestigious organizations such as the Institute of Directors (IOD) and the Nigerian Red Cross.

Commencing his accounting career in 1965 at Coopers & Lybrand, Ijewere later founded Ijewere & Co., a chartered accountancy firm in Nigeria, in 1979. The firm earned a stellar reputation for its tax advisory services, solidifying its place among the country’s most esteemed indigenous accounting companies.

As a businessman, Ijewere chaired and directed several companies, including Best Foods Group, Emson, Nigeria Agribusiness Group, Drum Resources Nigeria Limited, Apel Capital & Trust Limited, Countrywide Direct Mortgage Company, Kerildbert Holdings, Computer Warehouse Group (CWG), Gemini Pharmaceuticals, among others.

On the national stage, he was a pioneer chairman of the Agriculture and Food Security Commission and served as a director on the defunct modified value-added tax committee in 1993. Emmanuel Ijewere’s influence reached beyond borders, with memberships in the National Economic Forum (NEF), the International Investment Council (HIIC), and the Agricultural Transformation Implementation Council (ATIC) under the chairmanship of ex-President Goodluck Ebele Jonathan.

Notably, he played a vital role as the president of the Nigeria Agribusiness Group (NAGB), the umbrella organization for Nigerian agriculture, until his passing.

Emmanuel Ijewere’s commitment to the agricultural sector was evident through his role as a resource person for the transition committee of former President Muhammadu Buhari, providing insights into the agricultural landscape of the nation.

His demise marks the end of an era for the Nigerian business community, as Emmanuel Ijewere’s multifaceted contributions and leadership will be remembered and celebrated by those whose lives he touched

This is according to a circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003, and signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa. 

The Central Bank of Nigeria has reversed its policy on crypto assets in the country and asked banks to disregard its earlier ban on crypto transactions. 
This is according to a circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003, and signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa. 
The CBN circular is titled, “Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS).” 
The apex bank stated that current trends globally have shown the need for crypto regulation. It said, “The CBN in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.
“However, current trends globally have shown that there is need to regulate the included providers (V/ASPs) which activities of virtual assets service cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPs to be regulated to prevent misuse of virtual assets for ML/TF/PF Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognizes VASPs as part of the definition of a financial institution. 
“In addition, the Securities and Exchange Commission in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPs to provide a regulatory framework for their operations in Nigeria. 
“In view of the foregoing, the CBN hereby issues this guideline to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria

Former Governor of the Central Bank of Nigeria, CBN, Mr Godwin Emefiele has disclosed that the naira redesign was a directive from one of ex-President Muhammadu Buhari’s former aide.

Emefiele said the former presidential aide gave him the directive in September 2022 during his visit to the Presidential Villa in Abuja.

This was contained in a report by the Special Investigator on CBN and Related Entities, Jim Obazee which was submitted to President Bola Tinubu.

Tinubu had commissioned Obaze to investigate the CBN operations under Emefiele.

Recall that CBN under Emefiele had redesigned N1,000, N500, N200 and N100 notes.

Explaining why the naira denomination was redesigned, Buhari had said the need to fight corruption and insecurity headlong, including controlling inflationary trend partly necessitated the decision to redesign the currency denominations.

Obaze’s report reads partly: “The Naira Redesign was not approved by the Board of CBN and President Muhammadu Buhari in accordance with the law. Buhari only tagged along. Sometimes in September 2022, the erstwhile Governor of the CBN claimed that during his visit to the Presidential Villa, one of the presidential aides told him to go and consider redesigning the Naira.

“On 6th of October, 2022, Emefiele wrote Buhari seeking approval to redesign and reconfigure N1,000, N500, N200 and N100 notes. Buhari approved the proposal same day. But Buhari approved the currency be printed in Nigeria.

“On that 6th October 2022, former President Muhammadu Buhari approved Emefiele’s request and directed that he should redesign and reconfigure the four denominations of the Naira notes as prayed, but should print them locally.

“Emefiele did not consult with the management of the CBN or seek any recommendation from the Board of the CBN as required by Section 19 of the CBN Act, 2007.

“Emefiele did not seek the recommendation of the Board of the CBN nor revert to former President Muhammadu Buhari to inform him nor seek his presidential approval for the new redesigns and the fact that he is now recommending only three denominations

“Emefiele took the redesigns, a mere change of colour to De La Rue in UK for a fee of £205,000. Only N1,000, N500 and N200 notes were redesigned.”