CBN Reduces Banks’ Loan-To-Deposit Ratio To 50%
The Central Bank of Nigeria (CBN) has reduced the Loan-to-deposit ratio (LDR) of banks to 50 per cent from 65 per cent. The apex bank made this known in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy”. The circular was signed by the Acting Director of the Banking Supervision Department, CBN, Adetona Adedeji. In a bid to increase lending to the economy especially Small and Medium Enterprises, SMEs, retail mortgage and consumer loans, the CBN on July 3, 2019, increased Banks’ LDR to 60 per cent from 57 per cent. The LDR was further raised to 65 per cent in January 20020. The reduction in the LDR according to analysts at Afrinvest Securities is to allow banks to comply with the Cash Reserve Ratio, CRR of 45 per cent. They said, “Today, the CBN in a circular to Deposit Money Banks titled “Re: Regulatory Measures to Improve Lending to the Real Sector of the Nigerian Economy” announced a scale down of the Loans to Deposits Rate (LDR) by 15.0ppts to 50.0% – reversing previous threshold set by the past CBN administration in January 2020. “In our view, this downward review of LDR allows banks to comply with the 45.0% CRR directive, and eases off pressure on the lenders considering the restrictive nature of other CBN directives including the Net Open Position (NOP) ceiling of 20.0% short and 0.0% long. Thus, we believe this policy would enhance the ability of banks to sweat out assets without creating unnecessary risks.”
Bobrisky Transferred To Another Prison
The Nigeria Correctional Service (NCS) has reportedly transferred embattled cross-dresser Idris Okuneye, popularly known as Bobrisky, from the Ikoyi Correctional Center to the Kirikiri Prison. Recall that Bobrisky, a controversial figure, was sentenced last week to a six-month jail term for abusing the Naira. A reliable source, an official of the NCS, told LEADERSHIP that the popular cross-dresser is presently held at the Kirikiri Prison and was discreetly transferred last weekend to Kirikiri. He stated, “It is procedural that he is moved to Kirikiri since it is an expansive prison compared to what we have here,” adding that due to security reasons, Okuneye was quietly moved to the facility where he will serve his term. The source confirmed that the convict had been taken to the male cell with other inmates “and so he will be treated as a normal inmate,” he said. While sentencing Bobrisky on Friday, April 12, 2024, Justice Abimbola Awogboro of the Federal High Court in Lagos State said the verdict would serve as a deterrent to others who are fond of abusing and mutilating the naira. Bobrisky is being identified as a male based on his admission at the court last week, and according to reports, there is no realignment of gender or genital organs.
Naira Abuse Charge: Cubana Chief Priest pleads not guilty ….granted 10m bail
A businessman and socialite, Pascal Okechukwu, popularly known as Cubana Chief Priest, on Wednesday, pleaded not guilty to tampering and abusing the naira. Cubana Chief Priest was arraigned before Justice Kehinde Ogundare of the Federal High Court in Lagos on three counts bordering on abuse of naira by allegedly spraying and tampering with the nation’s currency at a social event, contrary to the provisions of the Central Bank Act of 2007. He was alleged to have sprayed the naira on February 13, 2024, at Eko Hotel. Cubana Chief Priest was said to have also committed the offences while dancing during a social event. He was said to have tampered with funds in the denomination of N500 notes issued by the CBN by spraying the same for two hours.
NCAA suspends three private jet operators for operating commercial flights
The Nigerian Civil Aviation Authority has suspended the permit of three private jet operators for engaging in commercial flights. This was according to a Riot Act on the NCAA’s website on Tuesday, signed by the Acting Director General, Captain Chris Najomo. The Minister of Aviation and Aerospace Development, Festus Keyamo, had on Monday warned private jet operators unlicensed to operate commercial services that their activities were causing the Federal Government a huge loss of revenue. The minister issued the warning in an interview on Channels TV programme, Newsnight, on Monday. Keyamo said, “Almost all these private jets are operating commercially resulting in a huge loss of revenue for the Federal Government because the licence to fly a private aircraft privately and the one to fly it commercially is so much. “When it is commercial, the money paid to the Federal Government is so much. So, people now take licences from us to say I have just bought a private jet and I want to be using it for my business or to fly my friends and family, and we give them at a very low fee. “However, the moment they are given, they carry passengers all over Nigeria doing six or eight flights a day. This is a notice to them on camera, I am coming for them because the president has given us a marching order, and we are not going to allow it. “First, in terms of passengers’ safety, the regulation is low. Second, it is economic sabotage and I won’t allow that to happen. People who are my friends or the president’s friends, we will come down on them and, perhaps, ground all their planes. We will come very hard on them. In a matter of days or weeks, we are going to come down on them because we have to raise revenue for the Federal Government, ensure that the laws are kept and ensure the safety of Nigerians.” However, expediting action on the warning issued, the acting DG of NCAA in a Riot Act on Tuesday, suspended three jet operators found guilty of engaging in commercial flights. The acting DG disclosed that despite several warnings, these jet operators continued to engage in commercial flight operations, hence their suspension. The message read, “Back in 2023, the use of private jets for commercial purposes had gotten the attention of the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, who issued marching orders for the cessation of such acts. “Subsequently, in March 2024, the NCAA issued a stern warning to holders of the permit for non-commercial flights, PNCF, against engaging in the carriage of passenger-cargo or mail for hire and reward. “The Authority had also deployed its officials to monitor activities of private jets at terminals across the airports in Nigeria. As a consequence of this heightened surveillance, no fewer than three private operators have been found to be involved in violation of the annexure provision of their PNCF and Part 91.14 of the Nigeria Civil Aviation Regulations.” Najomo noted that suspending the jet operators for flouting several warnings was in line with the Authority’s zero tolerance for violation of regulations. He continued, “In line with our zero tolerance for violation of regulations, the Authority has suspended the PNCF of these operators. To further sanitise the general aviation sector, I have directed that a re-evaluation of all holders of PNCF be carried out on or before the 19th of April 2024 to ascertain compliance with regulatory requirements.” The statement further directed that all holders of the Permit for Non-Commercial Flights should submit relevant documents to the Authority within 72 hours. It added, “All PNCF holders will be required to submit relevant documents to the authority within the next 72 hours. “This riot act is also directed at existing Air Operator Certificate (AOC) holders, who utilize aircraft listed on their PNCF for commercial charter operations. “It must be emphasised that only aircraft listed in the operation”.
Naira Abuse: EFCC Files 3-Count Charge Against Cubana Chief Priest
Nigerian socialite, Pascal Okechukwu, popularly known as Cubana Chief Priest, has been charged to court by the Economic and Financial Crimes Commission, EFCC. The Imo State born celebrity barman will be arraigned before the Federal High Court in Lagos on a three-count charge for allegedly spraying and tampering with the Naira at a social event, contrary to the provisions of the Central Bank Act of 2007. He is expected to take his plea before a trial judge tomorrow, Wednesday, April 17. The allegations against him read: “That you, Okechukwu Pascal, on 13th Feb. 2024, at Eko Hotel, within the jurisdiction of the court, while dancing during a social event, tampered with funds in the denomination of N500 (Five Hundred Naira) issued by the Central Bank of Nigeria by spraying same for two hours, and you thereby committed an offence, contrary to and punishable under Section 21(1) of the Central Bank Act 2007.” “That you, Okechukwu Pascal sometime in 2020, in Lagos during a social event, tampered with funds in the denomination of N500 (Five Hundred Naira) issued by the Central Bank of Nigeria by spraying same for two hours, and you thereby committed an offence, contrary to and punishable under Section 21(1) of the Central Bank Act 2007.” “That you, Okechukwu Pascal sometime in January 2024, in Lagos during a social event, tampered with funds in the denomination of N500 (Five Hundred Naira) issued by the Central Bank of Nigeria by spraying same and you thereby committed an offence, contrary to and punishable under Section 21(1) of the Central Bank Act 2007.” Cubana Chief Priest’s trial is coming few days after the anti-graft agency also secured the conviction of a controversial cross dresser, Idris Okuneye, aka Bobrisky, who was sentenced to 6 months in prison without the option of fine, for mutilation and abuse of the Naira.
Nigeria’s Inflation Rate Hits 33.20% As Naira Rebounds
Nigeria’s inflation rate jumped to 33.20% in March 2024 compared to February 2024 headline inflation rate which was 31.70%. This was according to the National Bureau of Statistics (NBS)’s Consumer Price Index (CPI) report released on Monday. “Looking at the movement, the March 2024 headline inflation rate showed an increase of 1.50% points when compared to the February 2024 headline inflation rate,” said the NBS. “On a year-on-year basis, the headline inflation rate was 11.16% points higher compared to the rate recorded in March 2023, which was 22.04%. “On a month-on-month basis, the headline inflation rate in March 2024 was 3.02%, which was 0.10% lower than the rate recorded in February 2024 (3.12%). This means that in the month of March 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in February 2024.” The inflation report by the NBS followed the hike of Nigeria’s interest rate from 22.75% to 24.75% by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN). Interestingly, the March inflation rate was released at a time when measures by the apex bank to strenghten the naira against foreign exchange have seen some positive results. The naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,100/$1 now. As the naira rebounds, Nigerians expect significant reduction in the prices of food and basic commodities but this hasn’t been the case with cost of living still high.
Alleged $4.5bn, N2.8bn fraud: Court grants Emefiele N50m bail
An Ikeja high court in Lagos State has granted bail to the embattled former governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, in the sum of N50 million. Ruling on the bail application on Friday, the presiding judge, Rahmon Oshodi, admitted Emefiele on bail with two sureties in like sum. The former CBN governor is facing a trial in Lagos on a 26-count charge bordering on abuse of office. Recall that Justice Oshodi had ordered the remand of the former Central Bank Bank (CBN) Governor, Godwin Emefiele, in the custody of the Economic and Financial Crimes Commission (EFCC). The judge gave the remand order over alleged abuse of office and $5.5 billion and N2.8 billion fraud. The judge ordered that Emefiele’s co-defendant, Henry Isioma-Omoile, should be detained at Ikoyi Custodial Centre. The defendants counsel, Mr A. Labi-Lawal, had in his two bail applications, urged the court to grant the defendants bail on self recognition and on liberal terms pending the determination on the case. Labi-Lawal, in his 31 affidavits, said the first defendant (Emefiele) had complied with the bail application, which was given to him by Justice Muazu in his alleged fraud trial case going on in Abuja. He said the charges were bailable offences and not a capital offence. “Though the first defendant was granted administrative bail by the prosecuting authority. He is seeking bail based on self recognition and he is ready to attend the court. “The court should also take into consideration the status of the first defendant as he was the former CBN governor of the country,” he said. The defence counsel said his client had religiously presented himself before Justice Muazu in Abuja to answer the allegations before him. According to him, the first defendant was not at flight risk, as he was the first person to arrive in court. He also prayed the court to release Emefiele to lawyer, pending the determination of the bail. Emefiele and his co-defendant pleaded not guilty to the 26-count charge bordering on abuse of office, accepting gratification, accepting gifts through agents, corruption, and fraudulent property receipt. The defendants, however, pleaded not guilty, following their arraignment. The EFCC counsel, Mr Rotimi Oyedepo (SAN), did not oppose the bail application moved by the defence counsel. Oyedepo, however, urged the court to exercise its discretion judiciously in granting bail to the defendants.
Naira Abuse: Court jail Bobrisky six months with no fine option … “I am a man,” he admitted
Justice Abimbola Awogboro of the Federal High Court in Lagos has sentenced cross-dresser Idris Okuneye, A.K.A Bobrisky, to six months in jail with no option of fine. Bobrisky, on arraignment, pleaded guilty to the charge of naira abuse. The Economic and Financial Crimes Commission (EFCC), on Thursday, April 4, docked the controversial cross-dresser on a six-count of money laundering and abuse of naira. However, the court dismissed the money laundering charges but convicted him for Naira Abuse after he confessed to the crime. At the last sitting, the prosecution counsel, S.I. Sulaiman urged the court to allow the investigating officer, ASE I Bolaji Temitope Aje, to give a brief review of the facts against him. Aje narrated to the court that the EFCC received intelligence on some individuals, who are in the habit of mutilating and spraying the Naira notes at social parties and event centres in Lagos. According to him, “Based on intelligence, the EFCC set up the Special Operations Team to observe and monitor activities of individuals, who are involved in the habit of mutilating the Naira. “The team visited many event centres and monitored social media pages, where the Naira was being abused. During the course of the monitoring, the team came across videos on social media, where the defendant was seen abusing the Naira. The team then proceeded to download these videos via our office laptop computers and also went further to copy these videos on compact disc. “In the light of the foregoing, a letter of invitation was written and forwarded to the defendant. “The defendant honoured the invitation. When he got to our office, he was voluntarily cautioned. Thereafter, he volunteered to write his statement. “The defendant was shown a video, where he was spraying money on an artiste called Segun Johnson. The defendant confessed that he was the one in the video. He was also shown a video at IMAX Circle Mall, where he sprayed a total sum of N400,000 at a movie premiere. The defendant also admitted that he was the one in the video and that he carried out the abuse. “The defendant was also shown two other videos of him spraying the Naira at Aja junction, Ikorodu, and White Stone Event Centre, Ikeja, Lagos. “The defendant admitted to spraying money in these videos. He was, therefore, served with a bail condition.” Consequently, Sulaiman then prayed the court to convict and sentence the defendant accordingly. Justice Awogboro had, thereafter, ruled that “upon the admission of guilt by the defendant, testimony of PW1 and following the evidence tendered, the defendant is declared guilty as charged.” In his plea for mercy, Bobrisky said: “I am a social media influencer, with five million followers; and in all honesty, I was not aware of the law. I wish I could be given a second chance to use my platform to educate my followers against the abuse of the Naira.” Also, his lawyer had said: “He will lead the crusade against the abuse of Naira. He is also an employer of people ; and if he goes to jail, the people he employs will suffer. He has cooperated with the EFCC and has not wasted the time of the court. We urge the court to caution the defendant and allow him to go. He has given evidence that he will be useful to the country. We urge you to grant a non-custodial sentencing option of fine.” After listening to both parties, the judge deferred judgment in the matter to Tuesday, April 9, 2024, and also ordered that he be remanded in the EFCC custody. Delivering judgment on Friday, Justice Awogboro held that “The act of mutilating the Naira notes has become a menace, which has continued to damage the image of the country. “Enough of people mutilating and tampering with our currencies. It has to stop. His will serve as a deterrent to others.” The Judge, therefore, sentenced him to six months imprisonment, without an option of fine, from the date of his remand
Preparations in Full Swing for Korea-Africa Summit 2024
Officials from African Diplomatic Missions and South Korean Ministry of Foreign Affairs Engage in Consultative Meetings Ahead of June, 2024 Summit in Seoul, Korea. As the summit draws near, officials from African diplomatic missions stationed in Korea and the South Korean Ministry of Foreign Affairs have intensified their collaborative efforts to ensure the success of the upcoming summit. Scheduled to take place in Seoul in June 2024, the summit aims to foster closer ties and explore avenues for mutually beneficial cooperation between South Korea and African nations. South Korea, known for its robust trading relationships with countries such as the US, China, Japan, Vietnam, Turkey, India, New Zealand, Peru, and the European Union, is now eyeing expansion into the African market. The Korea-Africa Summit presents a unique opportunity to solidify trade alliances with African countries, with both sides anticipating significant economic gains. Ambassador Dong-han Yang, representing South Korea, emphasized the summit’s goal of forging future-oriented partnerships with African counterparts. He underscored the importance of sharing development experiences to invigorate growth in participating countries, leveraging the dynamism of African economies. With the theme “The Future We Make Together: Shared Growth, Sustainability, and Solidarity,” the summit will delve into strategic collaborations between South Korea and African nations. Key areas of focus include addressing global challenges, sustainable energy, infrastructure development, human resource development (including Technical and Vocational Education and Training), science, technology, digital transformation, people-to-people exchanges, and peace and security initiatives. One of the significant announcements expected during the summit is South Korea’s intention to initiate Official Negotiations for the first-ever Free Trade Association (FTA) with African countries. Currently, South Korea boasts 21 FTAs with 27 countries, none of which are with African nations. This move aims to rectify the imbalance and facilitate direct trade between South Korea and Africa, potentially unlocking substantial economic opportunities for both sides. The summit also holds the promise of reversing the current trade imbalance, where Africa constitutes only one percent of Korean trade with the rest of the world. African countries stand to benefit from increased access to the Korean market, bypassing intermediaries such as Vietnam, China, and India. President Tinubu-led Federal Government is among the countries eagerly anticipating the economic windfall from the Korea-Africa Summit. The summit’s sideline meetings present a platform for high-level engagements, akin to the G20 summit held in Delhi, where the African Union was conferred with a permanent member title. President Tinubu had the opportunity to engage with leaders from the US, Germany, and South Korea, signaling the potential for significant diplomatic and economic gains. The Korea-Africa Summit in June 2024 is poised to be a landmark event, heralding a new chapter of cooperation and economic prosperity between South Korea and the African continent.
Alleged money laundering: Binance executive docked, remanded in Kuje prison
Binance Company and one of its executives, Tigran Gambaryan, was, on Monday, arraigned on five count charges bordering on Money Laundering by the Economic and Financial Crime Commission (EFCC). On arraignment, Tigran Gambaryan pleaded not guilty of the alleged offences before Justice Emeka Nwite of the Federal High Court, Abuja. Before the arraignment, Justice Emeka Nwite had in a brief ruling dismissed the objection by Gambaryan to taking plea on behalf of Binance on the ground that he was not its representative and had no written authority to do so. The court held that Gambaryan had in an affidavit claimed to be representative of the company and transacted businesses on its behalf in Nigeria. The anti-graft agency through its counsel, Ekele Iheanacho said the offences which were committed between January 2023 and December 2023 in Abuja were contrary to and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022. Count one alleged that the defendants between January 2023 and January 2024 in Abuja carried out specialised business of other financial institutions without valid licences. The offence is said to be contrary to Section 57(1) and (2) of the Banks and Other Financial, Institutions Act, 2020 and punishable under Section 57(5) of the same Act. Although the foreign national pleaded to be remanded at the custody of the Economic and Financial Crimes Commission EFCC, the plea was turned down by Justice Nwite. The judge subsequently ordered that the defendant be taken to Kuje Prison on remand. In the meantime, the matter has been adjourned until April 18 for hearing of the defendant’s application for bail and May 2 for trial of the charges.