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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.

An American multinational consumer goods firm, Procter & Gamble, popularly known as P&G, has announced that it is winding down its on-ground presence in Nigeria.

The Chief Financial Officer, Andre Schulten, made this known during his presentation at the Morgan Stanley global consumer & retail conference in New York on Tuesday.

P&G is the manufacturer of common Nigerian household items such as Pampers, Always, Oral B, Ariel, Ambi-pur, SafeGuard, Olay and Gillette.

According to Schulten, P&G will transition into importing its products to Nigeria rather than producing them in the country, adding that it is a result of the country’s challenging business environment as well as the difficulty in creating US dollar value

“The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create US dollar value.

“So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.

“So with that in mind, we are announcing a restructuring program with the intent to adjust the operating model and adjust the portfolio to ensure that we maintain the portfolio discipline that has brought us to this point.

“The restructuring program will largely focus on Nigeria and Argentina. We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model,” he said.

Fidelity Bank Plc has become an official signatory of the UN Principles for Responsible Banking (PRB) – a single framework for a sustainable banking industry developed through a collaboration between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).

The Principles are the leading framework for ensuring that banks’ strategy and practice align with the vision society has set out for its future in the UN Sustainable Development Goals and the Paris Climate Agreement. Banks who have signed the Principles commit to be ambitious in their sustainability strategies, working to mainstream and embed sustainability into the heart of their business, while allowing them to remain at the cutting-edge of sustainable finance.

Under the Principles, signatory banks identify and measure the environmental and social impact resulting from their business activities, set and implement targets where they have the most significant impact, and regularly report publicly on their progress. The Principles provide a framework for banks to systematically understand the risks and seize the opportunities arising from the transition to more sustainable economies.

“As long-time signatories to UNEPFI, signing onto the PRB is the next step to show our commitment to sustainability. Sustainability is central to our corporate strategy as a bank and joining the Principles further affirms our determination to increasing our positive impacts in all aspects of sustainability. The PRB aligns with our sustainability principles and the bank is delighted to join the global community of signatories championing sustainable development around the world”, commented Dr Nneka Onyeali-Ikpe,OON, Managing Director/Chief Executive Officer, Fidelity Bank Plc.

Signatories to the Principles take on a leadership role, demonstrating how banking products, services and relationships can support and accelerate the changes necessary to achieve shared prosperity for both current and future generations, building a positive future for both people and planet.

These banks also join the world’s largest global banking community focused on sustainable finance, sharing best-practice, and working together on practical guidance and pioneering tools of benefit to the entire industry.

This is a journey of unprecedented scale and scope at a time when such ambition is urgently needed to address the major planetary crises of climate change, nature loss, pollution and social issues.

Together, these collective efforts will ensure that profitability goes hand in hand with a sense of purpose.

Leading financial institution, Fidelity Bank Plc, has restated its determination to help businesses run profitably as it recently partnered with the Lagos Chamber of Commerce and Industry (LCCI) to host a conference to discuss solutions to challenges bedeviling the growth of businesses in the country.

Held at the LCCI office at Commerce House, Victoria Island, Lagos, the event featured a panel session comprising several top functionaries across the Nigerian economy.

Panelists at the session, which was themed “Powering Nigerian Businesses for Growth”, include: MD/CEO, KSBC Knowledge Resources Ltd, Mr. Chika Mbonu; CEO, Helf Africa, Mr. Yemi Osinubi, CFA; Principal, Sahel Capital, Ms. Tosin Ojo, CFA; Deputy National President of the Nigeria Cargo Airport Chapter of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Segun Musa; MD/CEO Zevis Pharmaceutical Ltd, Sir Elvis Emecheta; and MD, Super Audio Ind. Nigeria Limited, Mr. Keshab Vaswani.

Giving her keynote address at the event titled, “Promoting Trade and Industry in Nigeria: Government Initiatives and Opportunities for Business Growth”, the Honourable Minister of Industry, Trade, and Investment, Dr Doris Uzoka-Anite, who was represented by the Managing Director, Tafawa Balewa Square Managing Board, Mrs. Lucia Shittu, said:

“As a government, our responsibility is to provide the environment for ease of doing business that allows corporations to thrive similarly in other countries where they have representation. The Presidential Enabling Business Environment Council (PEBEC) was specifically constituted to achieve this with the primary objective of removing critical bottlenecks and bureaucratic constraints to doing business in Nigeria. As part of the ministry’s commitment to achieving this, our vision board is “Reposition Nigeria for business and investment, to attract FDIs by improving the ease of doing business” and I’m proud to announce that as of the last Ease of Doing Business report, one of the agencies supervised by my ministry – the Standards Organisation of Nigeria – is ranked as the most performant with a score of 98.09%. However, we still have a long way to go in strengthening weaker government institutions.

“Some of the upcoming initiatives from the Presidential Council on Industrial Revitalization, among other initiatives, include: upskilling, global-focused certification and licensing of artisans – with a view to export readiness and pipelining for both local businesses and cross-national corporations; creating a robust Agri-market system – one that ensures farmers get the most value for their hard work, provides farmers with more reliable access to credit through instruments like warehouse receipts, reduces the current multi-layered arbitrage system in the markets, introduces standards for warehousing, value addition and exports; standardising and promoting deeper technology and knowledge transfer across all our programmes including the free trade zones.”

Welcoming guests to the event, the MD/CEO, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe,OON, who was represented by the Divisional Head, Product Development, Fidelity Bank Plc and Chairman, Financial Services Group of the LCCI, Mr. Osita Ede, made a case for effective partnerships between the public and private sectors to drive economic growth.

In her words, “In the face of economic uncertainties, it is crucial that we embrace a mindset of resilience, adaptability, and collaboration. Together, we can identify opportunities that will not only sustain our businesses but also drive collective prosperity.

“Fidelity Bank is committed to being a catalyst for positive change, empowering businesses, and driving economic growth. We believe that by working together, in the face of the current economic realities, we can unlock the full potential of our nation’s businesses and create a future that is both sustainable and prosperous”.

Similarly, the President of the LCCI, Asiwaju (Dr) Michael Olawale-Cole championed the cause of business owners at the event, explaining that, “As business owners, we are faced with high operating costs and weak consumer demand due to high inflation and declining purchasing power. To explore growth opportunities, businesses must realise they have foreign exchange exposures and adopt hedging strategies to mitigate the impact of high inflation as well as leverage digital technologies to streamline operations, improve efficiency, reduce costs, and reach new customers.”

Advising the government, Olawale-Cole noted that with a huge debt profile, the government must seek alternative funding sources to improve the country’s infrastructure.

Minister of Innovation, Science and Technology, Uche Nnaji, has said Nigeria loses $10 billion yearly to imported certified welders engaged in various sectors of the economy.  

The minister disclosed this in Abuja, yesterday, at the signing of a Memorandum of Understanding for academic and industry collaborations between National Centre for Technology Management (NACETEM), the Federal University of Technology, Minna (FUTMINNA) and Neuro-Linguistic Programming Limited.  
    
Nnaji, who expressed sadness at the development, called on stakeholders to double efforts towards developing local content in the country and changing the trend.  
  
 He said the newly-commissioned Dangote Refinery employed about 11,000 welders, lamenting that none was Nigerian.  He said although Nigeria has over one million welders, none had international certification, which would enable them to work in the oil and gas sectors of the economy.  
   
“We are lacking in manpower. We are lacking in skillful artisans, not just digital people. Looking at the Dangote Refinery, it employed about 11,000 artisans, welders. But none of those welders came from Nigeria. They were all imported. A job as small as welding, of which we have over one million welders here, none of them has ISO certification. 
   
“And part of our move in this ministry is to partner with the Nigerian Welding Association and set up a hub in the six geopolitical zones, where we would train welders and give them ISO certification, so that they will have that permit to work both within and outside Nigeria. And if we have enough welders in this country, there will be no need to start importing welders. 

   
“And what Nigeria is losing in not doing that is over $10 billion every year, because a welder is paid about $150 a day. The same way, if you look at the AKK pipeline that is going on now, most of them came from Pakistan, India, China, not one from Nigeria,” he said.  
   
On his part, Director General of NACETEM, Olusola Odusanya, said the academic programme will help develop technological skills that would earn candidates international recognition. 
   
Also, the Vice Chancellor, FUT Minna, Faruk Kuta, expressed delight at the development, adding that the university is glad to partner with the agency to train middle and high level manpower in the sector.

President Bola Tinubu has approved the sale of more oil and gas fields abandoned by the international oil companies, IOCs.

The President has given the greenlight for conduct of fresh marginal field bid for the gas fields which have been lying fallow for over a decade.

This was disclosed by the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, during a facility tour of Waltersmith Petroman Oil Limited’s modular refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State, on Wednesday.

The minister said the bid exercise would commence “soon.”

The new bid round is coming barely three years after about 57 marginal oilfields were put up for sale in 2020 and the process effectively concluded last year, amid many of the awardees still struggling to move to site for development of their assets due largely to funding and regulatory challenges.

The minister, in a statement issued yesterday, by the Nigerian Content Development and Monitoring Board (NCDMB), disclosed that he had obtained presidential approval to conduct a fresh round of bidding, which would take place soon.

He promised that, “marginal fields would (henceforth) be prioritised in terms of their location to those who have modular refineries, so that they will be able to produce.”

The marginal field exercise is exclusively reserved for Nigerian companies as the federal government through the policy offers opportunity to local firms to participate more actively in the country’s oil and gas exploration and production space.

According to the Minister, “The quickest way to fix our energy challenge in the country should be through modular refineries, while we await the total rehabilitation of the big refineries.”

THE United Bank for Africa, UBA, Plc has taken over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt and Kano, following an order of a Federal High Court in Lagos, in an alleged N156,026,032,804.84 debt suit.

 The bank’s receiver manager, Romeo Michael and court bailiffs protected by the police on Friday, in the three cities, executed the interim orders made by Justice Akintayo Aluko on October 20, 2023.

 The judge made the order after hearing Temilolu Adamolekun, who appeared with Mohammed Usman, move the motion ex-parte as counsel for the plaintiff/applicants, supported by an affidavit in support deposed to by Mr. Anthony Chilaka, in the suit.

In granting UBA’s prayers, Justice Aluko also restrained the defendants, their directors, shareholders, employees, officers, and agents, from interfering with or frustrating the receiver/manager from exercising all the powers vested in him or performing his duties as receiver of the mortgaged properties.

 The order will last pending the hearing and determination of the motion on notice, which the court adjourned till November 20, to hear.

The affected assets include mortgaged property known as “all that piece or parcel of land together with any building thereon” at Plot 371, Trans Amadi Industrial Layout, Port Harcourt, Rivers State.

 ”Plot 353, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Plot 370, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, KM17, Lagos Badagry Expressway, Lagos State and No. 54, Challawa Industrial Estate, Kano State, Nigeria.”

Leading Reporters learnt that subscribers who had taken airtime or data loans from MTN may have to back the debt on their accounts as the initial debt cancellation was due to an error in MTN system.

This is even as subscribers, who believed the telecom operator deliberately cancelled their debts, have gone to social media to jubilate and appreciate the telecom company.

For instance, a subscriber named Ada, wrote on her WhatsApp status, saying, “Debt has been paid. MTN debtors Check your account, MTN don clear una gbese.”

Meanwhile, a response from,an official of MTN, revealed that subscribers will still have to pay for their debts, adding that, “Users would still be responsible for paying the ostensibly cleared bills even after MTN fixes the problem that caused the debts to vanish from their accounts.”

He explained that the disappearance of debts in the subscribers’ accounts was a glitch, meaning that the subscribers will still have to pay the supposed cleared debts once MTN rectifies the error.