Business

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.”

The Central Bank of Nigeria, CBN, has announced a stop to new loan applications under its development finance intervention funds scheme.

The suspension signals a dramatic shift in the central bank’s stance on development finance intervention funds, which were formerly regarded as a cornerstone.

The central bank also tasked Deposit Money Banks with recovering already given loans under the plan.

The CBN announced this in a circular to bank CEOs issued by the Acting Director, of the Development Finance Department, Sa’ad Hamidu, on Tuesday.

The circular titled ‘Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme’, read, “In furtherance of the Central Bank of Nigeria’s new policy thrust focusing on its core mandate of ensuring price and monetary stability, the Bank has commenced its pullback from direct development financing interventions.

“Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.

“In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loan applications for processing under any of its existing intervention programmes and schemes.”

In a bid to alleviate the ongoing cash scarcity crisis in Nigeria, the Central Bank of Nigeria (CBN) has announced the temporary suspension of processing fees on cash deposits exceeding certain thresholds.

This suspension, which takes effect immediately and will remain in place until April 30, 2024, aims to incentivize cash deposits and enhance financial transactions for individuals and businesses.

Previously, individuals were charged a two percent processing fee on cash deposits above N500,000, while corporate entities faced a three percent fee for deposits exceeding N3,000,000.

The directive, signed by Dr. Adetona S. Adedeji, Acting Director of Banking Supervision, mandates all CBN-regulated financial institutions to comply. This means individuals and businesses can now deposit any amount of cash without incurring additional charges.

Leading Reporters gathered that CBN staff said “this measure will address the immediate cash shortage by encouraging the deposit of available cash into the formal banking system. This will increase the liquidity available for withdrawals and economic activity. Additionally, it promotes financial inclusion by making banking services more accessible to individuals who primarily rely on cash transactions.”

However, concerns remain about the potential for fueling inflation and illicit financial activities due to the processing fee suspension. Experts emphasize the need for the CBN to closely monitor the impact of this measure and implement appropriate mitigating measures if necessary.

The Nation has also reliably gathered that to address the current cash crunch in the country, the CBN has started deploying cash from its branches across the country to locations in dire need of cash.

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Another CBN official revealed that “efforts are currently being made to move cash to where the scarcity is hardest.”

Read Also: Why CBN must resist further hike in interest rates

He reiterated that the CBN has sufficient cash to meet the transaction demands of cash-using members of the public.

He attributed the biting cash crunch to the panic withdrawals of cash by Nigerians ahead of the yuletide to forestall the experience of the last year.

The CBN’s latest directive and action to deploy cash to needy areas demonstrates its commitment to addressing the current cash scarcity crisis while promoting a cashless economy and ensuring a robust and inclusive financial system.

The suspension of processing fees on cash deposits is expected to provide immediate relief to individuals and businesses affected by the cash shortage, boosting economic activity and access to financial services in the short term.

Point-of-sale operators in Nigeria have raised the alarm that some state governments have started charging them at least N30,000 in taxes annually per agent.

The National Vice President of the Association of Mobile Money and Bank Agents in Nigeria, Obioha Oti, disclosed this in an interview with news correspondent Thursday.

Oti was speaking on the emerging threat of the naira shortage and its effect on PoS operators.

According to him, PoS vendors are plagued by naira shortages and heavy taxes in some parts of the country.

He alleged that state governments in Anambra, Cross River, and Akwa Ibom, as well as other states in the southwest and north, tax PoS operators N100 daily and N2500 monthly.

“There are many other problems POS operators are facing now. This disturbing trend is why some state governments have started taxing operators heavily. We have reports in Akwa Ibom, Cross River, Anambra states, states in the southwest and others in the north. For Anambra, there is an agency the government commissions to collect N100 daily, N2500 monthly, and N1000 to register. If you do the calculation, one agent will pay at least N30,000 to the government in the form of taxes. And sometimes the people collecting these taxes are more than one,” he said.