NDIC Increases Deposit Insurance Coverage For Banks, Mobile Money Operators

The Nigeria Deposit Insurance Corporation (NDIC) has increased deposit insurance coverage for all licensed deposit-taking financial institutions. Speaking at a press briefing in Abuja on Thursday, the NDIC Managing Director/Chief Executive, Bello Hassan, said the coverage ensures that depositors will be reimbursed up to a certain limit for their deposits in the event of a bank failure. He said the increment applies to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs), Payment Service Banks (PSBs) and Mobile Money Operators (MMOs). The NDIC boss said by increasing deposit insurance coverage, the corporation is ensuring that the move will strengthen the banking system and encourage further financial inclusion within the country. Hassan said the increased deposit insurance coverage levels will take effect immediately, offering Nigerians greater peace of mind when saving their money with licensed financial institutions. He said: “Key increases in Deposit Insurance Coverage: Deposit Money Banks (DMBs) coverage has jumped from N500,000 to N5,000,000, providing full coverage for 98.98 per cent of depositors compared to the previous 89.20 per cent. “Microfinance Banks (MFBs) coverage has risen from N200,000 to N2,000,000, offering full coverage for 99.27 per cent of depositors (up from 98.76 per cent) and significantly increasing the value of covered deposits (from 14.38 per cent to 34.43 per cent of total deposits). “For Primary Mortgage Banks (PMBs), the maximum coverage has been raised from N500,000 to N2,000,000, ensuring full coverage for 99.34 per cent of depositors (up from 97.98 per cent) and boosting the value of covered deposits (from 10.77 per cent to 21.04 per cent of total deposits). “Payment Service Banks (PSBs) coverage has been increased from N500,000 to N2,000,000, providing near-complete protection (99.99 per cent) for depositors and raising the value of covered deposits to 43.10 per cent of the total (from 40.60 per cent). “For Mobile Money Operators (MMOs), the maximum Pass-through deposit insurance coverage has been raised to N5,000,000 per subscriber per MMO, aligning it with the coverage level for DMBs. “Deposit insurance coverage levels for all licensed deposit-taking financial institutions refer to the amount of protection provided to depositors in deposit-taking financial institutions in case the financial institution fails or goes bankrupt.”

Tinubu Govt Approves Salary Increase For Civil Servants

The Federal Government has approved an increase of between 25% and 35% in salary increase for Civil Servants on the remaining six Consolidated Salary Structures. A statement signed by the Head of Press of the National Salaries, Incomes and Wages Commission (NSIWC), Emmanuel Njoku, said the increases take effect from 1st January 2024. Njoku added that the government has also approved increases in pension of between 20% and 28% for pensioners on the Defined Benefits Scheme with respect to the above-mentioned six consolidated salary structures with effect from 1st January 2024. The Salary Structure is the Consolidated Public Service Salary Structure (CONPSS), Consolidated Research and Allied Institutions Salary Structure (CONRAISS), Consolidated Police Salary Structure (CONPOSS), Consolidated Para-military Salary Structure (CONPASS), Consolidated Intelligence Community Salary Structure (CONICCS) and Consolidated Armed Forces Salary Structure (CONAFSS). It will be recalled that those in the Tertiary Education and Health Sectors had already received their increases which involved Consolidated University Academic Salary Structure (CONUASS) and Consolidated Tertiary Institutions Salary Structure (CONTISS) for Universities. For Polytechnics and Colleges of Education, it involved the Consolidated Polytechnics and Colleges of Education Academic Staff Salary Structure (CONPCASS) and Consolidated Tertiary Educational Institutions Salary Structure (CONTEDISS). The Health Sector also benefitted through the Consolidated Medical Salary Structure (CONMESS) and Consolidated Health Sector Salary Structure (CONHESS).

Guinness Nigeria reports N62bn loss despite price hikes

Despite the hikes in prices of it’s products, Guinness Nigeria has reported a loss of N61.7 billion for the nine-month period ended March 31, 2024, compared to a profit of N5.9 billion in the same period of 2023 despite an increase in price. The brewer recorded 28 per cent growth in revenue to N220.3 billion compared to N172.5 billion in the same period last year. The Managing Director/CEO of Guinness Nigeria Plc, Adebayo Alli, who expressed this said that, while the current macroeconomic environment will continue to present challenges, “I am confident in the resilience of our business and our ability to navigate the volatility.” “Our focus remains steadfast on innovation and stepping up operational excellence to meet our consumers’ evolving tastes and preferences. “Furthermore, the company intensified its focus on consumer engagement and trade support, leveraging its digital platforms. Notably, categories such as non-alcoholic malt, ready-to-serve beverages, and international premium spirits witnessed substantial revenue growth, underscoring the effectiveness of these strategies,” he said. Recall that earlier in May, Guinness Nigeria implemented a price increase on all its products, which was ascribed to the rising cost of production and cost of doing business. It said in a notice titled, “Price Increase by Guinness Nigeria Plc – Selected Brands,” which was signed by its Ag. commercial director, Olusanya Adesanya, that the new range of prices would take effect from today. “Following the prevailing economic realities which have impacted significantly on the costs of our production materials and cost of doing business, this is to inform you that we plan to take a price increase on selected SKUs in our Beer and MSS category,” Guinness Nigeria said. “This new price structure will be effective from Wednesday, March 13, 2024, (Go-Live date), and further details will be communicated subsequently,” it said. Guinness further told its customers to, “please note the following conditions regarding the price increase. Maximum purchase volume before price increase at old pricing is capped at one-week depletion subject to stock availability. Affected products are Guinness Stout, Guinness FES, Guinness Smooth, Malta Guinness, Dubic Malt, Smirnoff Ice, Orijin, Orijin Bitters, Gordon’s Pink Berry, Gordon’s Sunset Orange, Gordon’s Moringa Citrus, Smirnoff X1 Smooth and Choco, Captain Morgan and Orijin Herbal Gin. Guinness price of about N500 now sells for N800 and N900, indicating 80 per cent increase. Big stout retails N1000 from N700, which is a 43 per cent increase. Trophy’s price increased by 40 per cent to N700 from N500 while Guilder retails N1000 from N600, indicating 67 per cent increase. Guinness Nigeria, a Nigerian-based subsidiary of Diageo Plc of the United Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja. The brewery was the first Guinness operation outside Ireland and Great Britain. Other breweries have been opened over time: Ogba brewery in 1963 and Benin City brewery.

Alleged N3bn Fraud: How Oyo-Ita, Allies Diverted Public Funds to Private Companies

Prosecution Witness Eight, (PW8), Hamma Adama Bello in the trial of former Head of Service (HoS), Winifred Oyo-Ita on Thursday, April 25, 2024 narrated before Justice James Omotosho of the Federal High Court, Maitama, Abuja, how the  defendant and her subordinates diverted public funds into their private companies. Oyo-Ita, the first defendant is facing criminal prosecution by the Economic and Financial Crimes Commission, EFCC alongside her special assistants, Ugbong Okon Effiok (seventh defendant), Garba Umar (fourth defendant) and six companies: Frontline Ace Global Services Limited, Asanaya Projects Limited, Slopes International Limited, U and U Global Services Ltd, Prince Mega Logistics Ltd and Good Deal Investments on 18-count charges bordering on misappropriation, official corruption, money laundering and criminal diversion of funds to the tune of over N3billion. The witness, while being led in evidence by prosecution counsel Faruk Abdullahi and H.M. Mohammed told the court that Oyo-Ita used Slopes International Limited and Good Deal Investments Limited-fifth and sixth defendants respectively to fraudulently award government contracts to herself through the fourth defendant, Umar. The first entry transaction of Good Deal Investment Ltd on February 2019 showed that money was paid into its Zenith Bank account to the tune of N42,748, 201.47 ( Forty-two million, Seven Hundred and Forty-eight Thousand, Two Hundred and One Naira, Forty-seven kobo). Umar, the witness said incorporated the company with Oyo-Ita’s full knowledge.   “We called for the account statements of these two companies, upon analyzing them, we realized he (Umar) was paid several sums of money from the Ministry of Power, Works and Housing where he is an employee. Upon interviewing the fourth defendant, he admitted that he was also a contractor. He also admitted to having paid the first defendant on several occasions from the proceeds of the transaction,” the witness said.   On April 27, 2019, the witness disclosed that a transfer of N20, 2027, 142 (Twenty Million, Two Thousand and Twenty-seven, One Hundred and Forty-two Naira) was made in the name of Ibrahim Madu to the Zenith Bank account of Asanaya Projects Ltd. The mandate card of the account bears the signature and photo of the seventh defendant, Effiok.   Investigation, according to the witness, also revealed that the seventh defendant incorporated Asanaya Projects Ltd in his name with the knowledge of the first defendant and that approvals were granted and payments made to the seventh defendant either through his personal account or to the account of the company.    According to the witness, “The seventh defendant upon interview confirmed he never travelled for most of the funds he received and that the first defendant was aware and benefitted on several occasions from the funds. The account of U and U Global Services Limited was also opened by the seventh defendant.   “In summary, from 2015 to 2018, U and U Global Limited received several payments in the form of Duty Tour Allowances and estacodes. Sometimes, payments from the federal government were made directly to the account. For instance, on March 24, 2016, he received N40, 313, 453. 58 (Forty Million, Three Hundred and Thirteen Thousand, Four Hundred and Three Naira, Fifty-eight Kobo). This particular payment was from the federal government.”   Further in his testimony, the witness stated that “Exhibit O is the Fidelity Bank account of Prince Mega Logistics Ltd. On March 27, 2018 and April 6, 2018, there were four entries, N4, 950, 000 (Four Million, Nine Hundred and Fifty Thousand Naira); N3,946,000; (Three Million, Nine Hundred and Forty-six Thousand Naira); N4,676,000 (Four Million, Six Hundred and Seventy-six Thousand Naira) and N1,478,000 (One Million, Four Hundred and Seventy-eight Thousand Naira) from Thomson Titus Okure who used to be a colleague of the seventh defendant in the Account Department.

CBN sells $10,000 to BDCs at N1,021 per dollar

The Central Bank of Nigeria, CBN, has approved the sale of an additional 10,000 dollars to 1,583 eligible Bureaux De Change, BDC, operators in the country to meet the demands of the market. The CBN’s Director, Trade and Exchange Department, Dr Hassan Mahmud, made this known in a letter addressed to the President, Association of Bureau De Change Operators of Nigeria, ABCON, on Tuesday in Abuja. Mahmud said that the CBN would sell to the BDCs at the rate of N1,021 to a dollar. “The BDCs are, in turn, to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price,” he said. He directed all eligible BDCs to commence payment of Naira deposit to some designated CBN Naira deposit account numbers. “All BDCs are advised to continue to abide by the rules and conditions as stipulated in our earlier operational guidelines,” he added. Recall that on April 8, the apex bank approved the sale of 10,000 dollars to 1,588 eligible BDC operators at the rate of N1,101 to the dollar amid efforts to stabilize the Naira at the FX market. The development comes amid the recent drop in the value of the Naira against the dollar. From last month to date, the Naira has depreciated four times.

Naira Abuse: Bobrisky appeals against sentence

Controversial cross-dresser Idris Okuneye, A.K.A Bobrisky has approached the Appeal Court, challenging the six months sentence given to him by a Federal High Court sitting in Lagos. He pleaded guilty before Justice A.O. Awogboro of the court on a four counts charge bordering on naira abuse proffered on him by Economic and Financial Crimes Commission (EFCC). However, the court on April 12 sentenced Okuneye to six months imprisonment without an option of fine to serve as a deterrent to others fond of abusing and mutilating the naira. Not satisfied with the verdict handed to him, Okuneye, through his counsel, Mr Bimbo Kusanu, has approached Court of Appeal, praying it to set aside the sentence. Specifically, Bobrisky is asking the court to replace the sentence with an option of N50,000 fine on each of the counts. In the notice of appeal, he submitted that the trial court imposed the maximum sentence on the appellant, who had no previous criminal record of conviction. He stated that there were options to impose a lesser sentence by the provisions of the Administration of Criminal Justice Act (ACJA). He averred that the sentence imposed by the trial court against the appellant was punitive and contrary to the mandatory provisions of the ACJA. The appellant stated that the trial court did not consider the positive antecedent of the appellant, who did not waste the time of the court by pleading guilty to the charge. He stated that the appellant honoured the invitation of the respondent on the first invitation. He said that the trial court failed to exercise its discretion judiciously and judicially in sentencing the appellant, explaining that such an act had occasioned a miscarriage of justice against his client.

Naira Abuse: I’m only artiste who stops people from spraying me – Seun Kuti

Afrobeat singer, Seun Kuti has claimed he is the only musician in Nigeria who stops people from spraying him currency bills when performing. He also claimed that a lot of artistes, especially fuji musicians praise people in melodies during their performances just so that they can be sprayed. Kuti made the claims against the backdrop of the Economic and Financial Crimes Commission, EFCC’s crackdown on Naira abusers. Speaking in a video message shared via his Instagram account, he said: “I don’t even like to be sprayed. I’m the only artist that stops people from spraying me. Even my dad, the legendary Fela didn’t prevent people from spraying him but he demanded the denominations he wanted to be sprayed. “Nobody wey Sunny Ade never sing for so he can be sprayed. Everybody name. KWAM 1 … eh eh. It is the politicians that made spraying a standard behaviour.”

Senate gives update on P/Harcourt Refinery

The Senate Ad-Hoc Committee to Investigate the Turnaround Maintenance of Nigeria’s Refineries has said the Port Harcourt Refinery will begin operation before the end of December. This is as the Rivers State Governor, Siminalayi Fubara, has stated that his administration is working in tandem with President Bola Tinubu-led Federal Government’s policies designed to make life better for Nigerians through the Renewed Hope Agenda. Fubara noted that, in doing so, the Woji-Aleto-Alesa-Refinery Road, now 70 per cent completed, was being constructed to provide a bypass to easily access the Port Harcourt Refinery and take off traffic from the East-West Road. He made the remark when members of the Senate Ad-Hoc Committee to Investigate the Turnaround Maintenance of Nigeria’s Refineries, led by their Chairman, Senator Ifeanyi Ubah, paid him a courtesy visit at the Government House in Port Harcourt on Friday. This was contained in a statement issued in Port Harcourt on Saturday by the Chief Press Secretary to the Governor, Nelson Chukwudi. The governor said the purpose of governance was to make life easy for the people. He expressed delight that the Senate Committee’s investigation would make life easy and meaningful for Nigerians. The statement read, “We, as a state, before the commencement of the rehabilitation job, had a contribution that we wanted to make to support the work at the refinery because of the deplorable state of the East-West Road. “There is a road: Woji-Aleto-Alesa Refinery Road. We are almost completing the bridge. It’s about 70 per cent completed. We are doing almost the last part of it. With that road, it will help to decongest and reduce the trouble commuters face along the East-West Road while providing easy access, straight to the refinery. “So, you can see that our government is working in line, supporting the Administration of President Bola Tinubu to give our people hope and assurance that things will soon get better.” It added, “And it is this role that you are playing, genuinely. With the support of this state government, that is the only way we can achieve the purpose of governance for everyone. “The purpose of governance is to make life easy for the people. I am happy that your investigation would make life easy for the people,” the governor explained. Fubara pointed to the derivable benefits when the refinery is eventually revamped and becomes operational, both to the Federal Government and host, Rivers State. He added, “When the refinery restarts production, there will be petroleum products available locally. The issue of importation will go down. “We will now make an impact, the economy will grow, and internally generated revenue will increase. More projects will be executed in this state. You can see that it’s a chain effect thing. So, I want to thank you.”

FAAC Shares ₦1.1 Trillion Revenue To FG, States, LGs

The Federation Account Allocation Committee (FAAC) distributed a substantial sum of ₦1.123 trillion from the March 2024 Federation Account revenue to the federal, state, and local government tiers on Friday. The allocation, as reported by the Director of Press and Public Relations at the Office of the Accountant General of the Federation, Bawa Mokwa, reflects an uptick in several major revenue streams, including import duty, value-added tax (VAT), gas royalty, and companies’ income tax (CIT). According to a communique released after FAAC’s April meeting, the total distributable revenue consisted of ₦311.233 billion from distributable statutory revenue, ₦511.879 billion from distributable VAT revenue, ₦14.754 billion from Electronic Money Transfer Levy (EMTL), and ₦285.525 billion from exchange difference revenue. The total available revenue for March was ₦1,867,808,000,000. Deductions for the cost of collection amounted to ₦69.537 billion, while transfers, interventions, and refunds totaled ₦674.880 billion. March’s gross statutory revenue was ₦1.017 trillion, a decrease of ₦175.212 billion from February’s ₦1.192 trillion. Conversely, the gross revenue available from VAT for the same period was ₦549.698 billion, marking an increase of ₦89.210 billion over the previous month. The communique detailed that the Federal Government received ₦345.890 billion, state governments were allocated ₦398.689 billion, and local government councils received ₦288.688 billion. Additionally, mineral-producing states received ₦90.124 billion as a 13% derivation of mineral revenue. From the ₦311.233 billion distributable statutory revenue, the Federal Government received ₦133.960 billion, state governments ₦67.946 billion, and local government councils ₦52.384 billion. A total of ₦56.943 billion was distributed as derivation revenue to the benefiting states. For the distributable VAT revenue of ₦511.879 billion, the Federal Government received ₦76.782 billion, state governments ₦255.940 billion, and local government councils ₦179.158 billion. The allocation of the ₦14.754 billion EMTL revenue saw the Federal Government receiving N2.213 billion, state governments ₦7.377 billion, and local government councils ₦5.164 billion. Furthermore, from the ₦285.525 billion in exchange difference revenue, the Federal Government was allotted ₦132.935 billion, state governments ₦67.426 billion, and local government councils ₦51.983 billion, with an additional ₦33.181 billion shared as derivation revenue with the mineral-producing states.

Israel-Iranian Conflict: Oil prices Soar

Oil prices have seen a significant spike, with Brent crude surpassing $90 per barrel, a notable rise from $87, in the wake of escalating tensions between Israel and Iran. The increase exceeded 3% on Friday following confirmed reports of an Israeli military operation on Iranian soil. The strike, which targeted strategic locations in Iran, has intensified fears of a potential full-scale conflict in the region, prompting a swift reaction in global oil markets. A U.S. official, speaking to NBC News, confirmed Israel’s involvement in the operations conducted in Iran, marking a significant escalation in the ongoing hostilities between the two nations. Further reports from CNN indicate that Iran’s Fars news agency reported hearing explosions at an airport in the city of Isfahan, although the cause of the blasts has yet to be determined. This incident has led to several commercial flights being diverted to avoid Iranian airspace, highlighting the broader regional implications of the conflict. This surge in oil prices reflects the market’s sensitivity to geopolitical events in the Middle East, a critical hub for global oil production and export. Investors and analysts are closely monitoring the situation, aware that continued unrest could lead to further disruptions in oil supply chains and additional increases in prices.