CBN to Assume Control of Crude Sales, as President Tinubu Unveils Sweeping Reforms in Oil Sector
President Bola Tinubu has directed the Central Bank of Nigeria (CBN) to assume responsibility for crude oil sales, a move aimed at addressing longstanding concerns about opaque practices and declining oil revenue under the management of Nigerian National Petroleum Company Limited (NNPCL). The action is to enhance transparency and efficiency in Nigeria’s oil industry, marking a significant departure from the previous exclusive control by the Nigerian National Petroleum Company Limited (NNPCL). Under the previous structure, the NNPC held sole authority over crude oil sales, submitting accounts solely to the federal government. Critics argued that this arrangement lacked transparency, allowing the NNPC to potentially underreport earnings. This directive mandates the NNPC to submit all receipts for crude oil sales to the CBN for thorough vetting and documentation. The objective is to eliminate any potential gaps in reporting and to ensure accurate records of oil revenue. It can be recalled that last week, the CBN Governor, Mr. Olayemi Cardoso called for collaborative effort with the Ministry of Finance and the NNPCL, highlighting its impact on foreign exchange flows and the accretion of reserves. Speaking at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report,” Cardoso outlined strategic reforms designed to foster transparency and stability in the foreign exchange market. “The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determine exchange rate policy by the CBN.” “This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.” He further highlighted the comprehensive strategy to improve liquidity in the foreign exchange markets, addressing fundamental issues that have hindered effective operations over the years. The ongoing independent forensic review aims to clear the backlog of valid FX transactions, demonstrating the commitment to upholding the integrity of financial markets.
CBN Boosts Forex Market with $500 Million Injection
The Central Bank of Nigeria (CBN) has infused an additional $500 million into the foreign exchange market to tackle the persistent backlog of confirmed forex transactions. This revelation was made by Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, during a press briefing held in Abuja on Monday, January 29. Mrs. Sidi Ali underscored the commitment of the central bank, stating, “The Management of the CBN is resolute in clearing all legitimate foreign exchange backlogs within a short time frame.” She assured the public that the CBN is executing a comprehensive strategy designed to enhance liquidity in the Nigerian foreign exchange markets across short, medium, and long-term horizons. The strategy, as explained by Sidi Ali, is laser-focused on addressing longstanding issues that have hindered the efficient operation of the Nigerian forex markets. Key components include streamlining and unifying multiple exchange rates, promoting transparency, and reducing arbitrage opportunities. The governor emphasized on resolving fundamental issues, Sidi Ali stated, “The CBN’s focus is squarely on addressing the underlying challenges that have impeded the effective operation of the Nigerian FX markets over the years.” She expressed confidence that achieving a stable exchange rate would not only boost investor confidence but also attract foreign investment. “We believe that a stable exchange rate will bolster investor confidence and attract foreign investment,” she remarked. Sidi Ali urged all participants in the forex market to abide by the rules, emphasizing that transparency would facilitate a fair determination of exchange rates, ensuring stability for businesses and individuals alike. This $500 million injection by the CBN is the latest in a series of measures implemented in recent months, underscoring the central bank’s ongoing commitment to addressing the forex backlog and maintaining stability in the forex market.
A Nation Poised for Greatness
The widely circulated video bemoaning the massive devaluation of the Nigerian Naira and our interpretation of what it portends for the future of our country, is a clear illustration of how our preconceived and implicit biases can dramatically influence our perception of the same reality. Yes, the author of the video, which sounded like an AI generated audio, was absolutely on target in his diagnosis of the pathology of incompetent, inept and corrupt leadership that has led to the decimation of our currency valuation. In fact, there is no daylight between you and me in our analysis of the current Hobbesian state of existence that our people are being forced to live through. No sane person can deny the reality of the current parlous existence of our people. It is all too glaring for everyone to see. Where there is a huge gulf between us is our future orientation. You, on one hand, see no hope of a bright future for Nigeria. I, on the other hand, see a nation that emerges out of this current mess into a future full of a promise of economic renaissance and rebirth. Even in the midst of the darkest cloud hovering Nigeria, I see shadows and glimmers of bright spots. I see incredible creative energy in the culture economy (Nigerian music and Nollywood) _killing_ it globally. I see a booming tech-economy and an emerging and thriving fintech. I see an economy that is rapidly becoming a cashless economy. From the local bukateria to the hawkers on the street, you can now almost transact business without cash. I also see an explosion of a construction economy. In my neighborhood here in Ibadan and across all the major cities in the country, there is an incredible redevelopment boom, old buildings being demolished, and in their place glistering massive edifice. It is also a reality that the Igbos are buying up the whole place from Lagos; to Ibadan, to Akure, and to my hometown Ilesha. Whether that is good or bad depends on one’s perspective. That is not the subject of this post. You can see some of the most amazing architectural masterpieces going up all over the place and a property valuation going through the roof. By the way, not all the construction are by politicians or corrupt civil servants. You will be surprised that the mechanic who fixes your car or the carpenter who calls your dad is a landlord. Rather than paying exorbitant rents, a lot of people, some misguided people, might look down on as low class, have actually managed to put up their shelter. It might not be Hollywood style edifice, but our resilient no-quitting people are beating the odds of home ownership. Of course, on the flip side, one cannot overlook the mind-numbing and sociologically dangerous gulf emerging between the haves and the have-nots. There is unnecessary suffering and inhumane poverty ravaging the land due to the insane greed of a kleptocratic ruling class and civil servants. That is the danger that lies ahead for our country. The Nigerian rich class may be unwittingly piling up the dynamite that might be used to blow up their wealth. We must address the wealth inequality and the emerging segregation of Nigeria into a de factor caste system based on wealth. So back to my point, while many of us, especially those of us in the diaspora, are focussed on the problems, I see dynamic people both Nigerian and especially non-Nigerians, who are capitalizing on the tremendous opportunities presented by a growing and consuming population of over 220 million people. I see a Nigerian population, though bended by the whiplash of an economic tsunami, yet a people not broken. A resilient people who are eternal optimists, fun-loving, and future prospect-oriented. When you tell a Nigerian he is marooned in an impenetrable jungle, he takes out a matchete and starts cutting a path. That is the Nigerian spirit that will get us out of the current economic quagmire if we don’t give to the debilitating noise of despondency and hopelessness. That is what gives me hope and not some blind sense of patriotism or unhinged optimism. It is our can-do spirit, which has made the Nigerian immigrant population in the U.S. and all over the world, one of the most dynamic and successful immigrant groups in the entire world. Yet, and sadly, when it comes to our country, the same diaspora Nigerians who have become pace-setters all over the world seem to be paralyzed by a pathology of pessimism and negativity. That is what’s so puzzling about the Nigerian diaspora. Let me reiterate that I am as convinced that, as it is predictable that the sun will emerge in its amber glory from the east tomorrow morning, bursting through the dark night, Nigeria too will emerge out of this darkest of nights into a glorious morn. This is not wishful thinking but evidence based prognostication. The reason, I have been sounding the alarm bell is to alert my people in the Diaspora not to be caught up in the web of pessimism and negativity and in the process lose out of the innovator’s dividend. Yes, the Nigeria economy is high risk, but it is also a high reward. The Nigerian stock market, for instance, emerged as one of the best performers globally last year. That is news you will not see posted on social media. All you will see are the stories of kidnapping, banditry, and mayhem all over the country. Those too are the reality of many Nigeria, but that is not the whole truth. That is the nature of the unregulated wild Wild West world of the new social media. Let me restate it now that it would be a catastrophic missed opportunity for those of us in the diaspora not to engage with the Nigerian economy now. Delay will be massively costly for those waiting until Nigeria becomes a mythical Eldorado. I am not talking theory. I am on the
Opay To Block Accounts Without Complete KYC
Nigerian financial technology company, OPay has announced a major security update in its operations. Starting from March 1, 2024, the company will remove fraudulent accounts from its system and block customers whose accounts are not compliant with Know Your Customer (KYC) requirements. This announcement was made during a news conference held on Wednesday. KYC, a standard banking process, involves verifying the identity and address of customers to prevent the misuse of banking services. This move by OPay is aimed at reinforcing the security of the platform and safeguarding customer deposits against fraudulent activities. The decision comes in the wake of a report that highlighted vulnerabilities in OPay’s registration and verification process for new accounts. In response to these concerns, Olayemi Precilia, the director of cards business at OPay, assured that security measures on the platform have been significantly upgraded. She revealed that new customers will now be required to provide their National Identity Number (NIN) as part of the account opening process. As the deadline approaches, OPay customers are advised to update their account details to meet the KYC requirements to avoid any inconvenience. She said, “When you log into your app and you have a tier one account and you don’t have your NIN, it will ask for your NIN. You cannot move forward without inputting that NIN. So, that is one of the things we’ve already done. “The second thing is, for new customers, you’re going to start off with the NIN. That’s what we’re implementing. So, we’re pulling information from your NIN into your wallet. That is going live next month. “And we have a timeline — March 1st — wherein anyone who is not compliant will be locked out.” Opay’s director of partnerships, Ikponmwosa Kolawole Odiase, said fraudulent accounts will be yanked off” the firm’s system. Going forward, according to Odiase, customers will be required to link their accounts with NIN and bank verification numbers (BVNs). Speaking on the issue of poor facial verification on the application, he said the firm intends to deploy a system where there will be a backend verification of customers’ facials with BVNs and NINs. He said, “It’s a collaboration between all relevant stakeholders — the regulators, the KYC agencies. All this is a way to curb fraud. “The fraudsters are not sleeping and we also are waking up to the challenge. It’s an industry challenge, unfortunately. “So many fictitious accounts will definitely go.”
Abba Yusuf Sacks Eight Directors At Internal Revenue Service
In a significant move to enhance its revenue-generating capabilities, the Kano State Government has terminated the services of eight directors from its Internal Revenue Service (KIRS). Governor Abba Kabir Yusuf, recently affirmed by the Supreme Court, sanctioned the dismissals in alignment with the government’s ongoing efforts to achieve its objectives. This is according to a KIRS circular signed by Chairman Sani Abdulkadir Dambo. The sacked directors include the Director of Assessment, Muhammad Kabir Umar; Director of Human Resources, Kabiru Magaji; Director of Government Business, Ibrahim Sammani; Aminu Umar Kawu, Director of Road and Other Taxes, and Muhd Auwal Abdullahi, Director of Tax Audit, Investigation and Debt Management. Others affected are Abubakar Garba Yusuf, Director of ICT, Hamisu Ado Magaji, Director of PAYE, and Bashir Yusuf Madobi, Director of Legal and Enforcement.
More Troubles for Emefiele as FG amends charges
Fresh troubles appear to be in the offing for former Governor of the Central Bank of Nigeria CBN, Godwin Ifeanyi Emefiele as the Federal Government again amended the charges against him on offences allegedly committed while in office. The earlier charges have been increased from six to 20, bordering on forgery, conferring of corrupt advantage, and criminal breach of trust among others. The Federal Government had initially filed 19 charges against the former CBN governor bordering on N6.9bn procurement fraud but pruned it down to six to the tune of N1.2bn which he is currently standing trial on. In the amended charge, Emefiele was accused of obtaining the sum of $6.2m by pretence by falsely representing the Secretary to the Government of the Federation. The government said the offence was contrary to section 1(1) of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006, and punishable under section 1(3) of the same Act. The charge read, “That you, Godwin Ifeanyi Emefiele male, adult, and Odoh, Eric Ocheme (Still at large) on or about the 8th day of February 2023 in Abuja, within the jurisdiction of this Honourable Court knowingly obtained by false pretence, the sum of Six Million, Two Hundred and Thirty Thousand United State Dollar ($6,230,000.00) by falsely representing that the Secretary to the Government of the Federation vide a letter dated 26th January, 2023 with Ref No. SGF.43/L.01/201 requested the Central Bank of Nigeria to provide a contingent logistic advance in the sum of $6,230,000.00 “in line with Mr. President’s directive” which representation you knew to be false and you thereby committed an offence.” He was also accused of conniving with one Eric Ocheme who has been at large to commit forgery. The government said the offence was contrary to section 96 (1) and punishable under section 364 of the Penal Code Law, Cap 89 Laws Federation, 1990. It read, “That you, Godwin Ifeanyi Emefiele male, adult, and Odoh, Eric Ocheme (Still at large) sometime in January 2023 in Abuja, within the jurisdiction of this Honourable Court agreed amongst yourselves to cause to be done an illegal act to wit: forgery of a document titled: RE: PRESIDENTIAL DIRECTIVE ON FOREIGN ELECTION OBSERVER MISSIONS dated 26 January 2023 with Ref No. SGF.43/L.01/201 and you thereby committed an offence.” Emefiele was also accused of conferring corrupt advantage on his wife Omoile Margret and Brother In-law Omoile Macombo by awarding a contract for the renovation of a portion of the CBN Governor’s residence in Lagos to the tune of N99.8m. The government said the offence was contrary to Section 19 of the Corrupt Practices and Other Related Offences Act 2000. The charge read, “That you, Godwin Ifeanyi Emefiele, male, adult, sometime in March 2020 within the jurisdiction of this Honourable Court did use your position as Governor of the Central Bank of Nigeria to confer a corrupt advantage on your wife, Omoile Margret, and brother-in-law Omoile Macombo by awarding a contract for the external renovation of the CBN Governor’s Residence lying, being and situate at No. 2 Glover Road, Ikoyi, Lagos in the sum of 99,826,452.47 to Messrs. Architekon Nigeria Limited, a company wherein the duo are directors and majority shareholders and you thereby committed an offence. ” Emefiele’s counsel, Mathew Bukka, SAN, pleaded with the court for time, adding that the amended charge was served on them on Wednesday. The trial judge, Justice Hamza Muazu, adjourned the matter till Friday January 19, for fresh plea of Emefiele to be taken in the new charges.
BREAKING: Court Grants Emefiele Permission To Travel Out Of FCT
Justice Hamza Muazu of the Federal Capital Territory High Court has granted the immediate past Governor of the Central Bank, Godwin Emefiele’s request to travel out of the FCT. The court said Emefiele must, however, remain in the country. On his bail terms, he was restricted to the FCT. Emefiele, through his lawyer, Mathew Bukka, SAN, had requested a variation of the terms. The Counsel of the Economic and Financial Crime Commission (EFCC), Rotimi Oyedepo, SAN, did not object. He told the court to ensure that Emefiele wrote an undertaking that he would remain in the country if his plea was granted. The charge against the former governor of the CBN was also amended to 20 from 6. The amended charges against Emefiele now includes criminal breach of trust, forgery, conspiracy to commit forgery, procurement fraud and conspiracy to commit felony.
New Jersey To Return $8.9m Looted Under Jonathan To Nigeria
Jersey’s Royal Court has ruled in favour of returning stolen assets valued at £6.9 million ($8.9 million) to Nigeria. The decision comes after Jersey’s Attorney General issued a forfeiture notice in November, asserting that the funds, deposited in a Jersey bank account, were likely misappropriated by Nigerian government officials in 2014. The illicit transfer of funds was reportedly disguised as government-sanctioned contracts for arms purchases during Boko Haram incursions in Nigeria between 2009 and 2015. Former President Goodluck Jonathan of the Peoples Democratic Party (PDP) was in power between 2010 and 2015. It will also be recalled that a lot of controversy had surrounded the purchase of weapons in the fight against insurgency with the then National Security Adviser (NSA), Sambo Dasuki, being accused of diverting funds meant for security equipment. Also in late 2014, a private jet belonging to the-then President of the Christian Association of Nigeria (CAN), Pastor Ayo Oritsejafor, was arrested in South Africa with $10m cash, which was allegedly meant for the purchase of military weapons. The Jersey court found that most of the funds, initially intended for legitimate arms deals, had been diverted through foreign bank accounts and shell companies linked to the former ruling party in Nigeria. Jersey’s Attorney General, Mark Temple KC, noted the collaboration between Jersey and the Federal Republic of Nigeria in the recovery process. Temple stressed the effectiveness of the 2018 Forfeiture Law in combating corruption and restoring funds to victims of crime. Plans are underway to negotiate an asset return agreement with the Nigerian government. He said: “This case again demonstrates the effectiveness of the 2018 Forfeiture Law in recovering the proceeds of corruption and restoring that money to victims of crime. “I now intend to negotiate an asset return agreement with the Federal Republic of Nigeria.”
Unlawful detention: Court orders EFCC to pay Emefiele N100m
The Federal Capital Territory High Court sitting in Maitama, Monday, declared the prolonged detention of the former governor of Central Bank of Nigeria, Godwin Emfiele without trial as a flagrant violation of his fundamental right. Consequently, Justice Kayode Adeniyi ordered the payment of N100million as fine against the Federal Government and the Economic and Financial Crime Commission (EFCC). The judgment was given in a fundamental human rights suit filed by the former CBN governor following his prolonged detention in the custody of the Department of State Services. In his argument, the embattled former CBN governor prayed the court for an order to mandate the respondents to pay N1billion damages to him and to restrain the prosecutor from further arresting and or detaining him. Recall that the ex-CBN was arrested on June 10, shortly after his suspension by President Bola Tinubu. The Federal Government, the Attorney General of the Federation, the Economic and Financial Crimes Commission, and its chairman were mentioned as the respondents in the matter. Delivering the judgment on Monday, Justice Kayode Adeniyi also restrained the FG and its agents from re-arresting or detaining Emefiele without an order of court. He said,” It is hereby declared that the actions of the first and fourth respondents and its agents in incarcerating the applicants from June 13, 2023, to October 26, 2023, when he was transferred to the custody of the fourth respondent and his further detention by the third and fourth respondents without arraignment in the court of law for the commission of any offence up until November 8, 2023, when by the order of this court when the applicant was released on bail to his senior learned counsel constitutes a flagrant violation of the applicant’s fundamental rights to personal liberty preserved by the provision of section 35 of the constitution of the Federal Republic of Nigeria, 1979 and Article 6 of the African charter on human and peoples right. “Also, a sum of 100m only is hereby awarded in favour of the applicant against the first and fourth respondents jointly as damages for the unlawful violation of his fundamental right to his personal liberty. “Without prejudice to the powers of the court with respect to the criminal trial, the applicant is currently facing at the High Court of the FCT, the respondents are hereby restrained either by themselves, their officers, agents, or any person acting on their behalf from further re-arresting or detaining the applicants without an order of a court of competent jurisdiction,” Justice Adeniyi ruled.
Emefiele Drags CBN Investigator To Court Over Damning Allegations
Former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has vehemently denied allegations made against him by a Special Investigator appointed by President Bola Tinubu. Emefiele labeled the accusations as “satanic, baseless, defamatory, and false.” In a statement released on Sunday, Emefiele expressed his intent to initiate legal proceedings to clear his name from the damaging claims contained in the report. His legal representative, Maxwell Okpara, confirmed the authenticity of the statement, underscoring the seriousness of Emefiele’s response. The investigator’s report, which allegedly accused Emefiele of various financial misconducts, including the opening of 593 foreign bank accounts without proper authorization, stirred controversy. Notably, it claimed substantial amounts held in UK banks without proper approvals and questioned the legitimacy of the recent naira redesign. Emefiele strongly refuted these allegations, asserting that he had complied with necessary protocols, including obtaining Presidential approval, and passing on necessary documents during the investigative process. He particularly emphasized that the redesign of the naira had received explicit authorization from former President Muhammadu Buhari. Furthermore, Emefiele distanced himself from allegations of withdrawing $6.23 million from the CBN vault based on a falsified presidential directive. He maintained his lack of knowledge and involvement, challenging the investigator to make public the purported documents and his statements during the inquiry. Regarding the numerous foreign accounts allegedly opened, Emefiele categorically denied any involvement or knowledge of such activities, stressing that CBN departments held the authority for such operations within their legal mandates. Emefiele concluded by reaffirming his commitment to a transparent investigation into the accusations while emphasizing his readiness to pursue legal action to refute the defamatory claims against him.