We’ve Been Printing Money Since 2015, But Swore Oath Not To Tell Nigerians —Rotimi Amaechi |The Republican News

Minister of Transportation, Rotimi Chibuike Amaechi

The Buhari administration has been on a cash-printing spree since it assumed office in 2015, but showed little courage at being transparent about it.

Minister of Transportation, Rotimi Amaechi
Transport minister Rotimi Ameachi has been caught on tape admitting that President Muhammadu Buhari has always ordered the CBN to keep printing money since 2015.

Mr Buhari vowed to revamp the Nigerian economy in his campaign promises, but has been criticised for worsening the economic situation over the past six years of his regime.

In an interview with journalists prior to the 2019 general election in which Mr Buhari was re-elected, Mr Amaechi also disclosed that they swore an oath never to publicly admit to Nigerians that the government was on a printing spree of the national currency.

“And most of you didn’t know at the time we took over, most Nigerians don’t even know because we have sworn to an oath not to tell anybody we were printing money,” Mr Amaechi said.

“Do you know when a country prints money? When it has no money at all,” he said. “We were just printing money to pay debt.”

Mr Amaechi’s comments further exposed the cover-up that has followed Mr Buhari’s widely condemned approach to the country’s economy, as millions of citizens continue to plunge into poverty. Nigeria has since emerged as the country with the highest number of poor people in the world. The country also has the poorest electricity supply and the second country with the most jobless people worldwide.

Earlier this year, renowned credit rating institution Fitch said the Nigerian central bank under Mr Buhari has been printing money at an alarming rate, warning that such tactics could engender additional economic woes for the country’s 200 million people.

Last month, Governor Godwin Obaseki expressed concerns on crude oil revenue, disclosing that the federal government printed extra N60 billion for states to share in March.

“In another year or so, where will we find this money that we go to Abuja to share every month? Last month, we got FAAC for March,” he said, explaining that “the federal government printed an additional ₦50 to ₦60 billion to top-up for us to share”.

“My worry is that we will wake up one day like Argentina, the naira will be ₦1,000, ₦2,000 and will be moving because we don’t have money coming in,” he maintained while lamenting that the current administration borrows without means or the idea of paying back.

In response, the Minister of Finance, Budget, and National Planning, Zainab Ahmed accused the governor of spreading falsehood, stating that “The issue that was raised by the Edo state governor for me is very, very sad because it is not a fact”.

Similarly, the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, dismissed Mr Obaseki’s claim, describing it as “unfortunate and totally inappropriate”.

Addressing the matter while speaking with journalists, Mr Emefiele said: “If you understand the concept of printing of money. The concept printing of money, it’s about lending money.

“That’s our job – to print. It’s about lending money and so there’s no need putting the controversy about the printing of money as if we are going into the factory printing the naira and start distributing on the streets.”

Prior to Mr Buhari’s assumption of office on May 29, 2015, Vice President Yemi Osinbajo disclosed that their administration would inherit $60 billion as foreign and domestic debt from the Goodluck Jonathan administration.

Mr Osinbajo had also described the state of the Nigerian economy as unfortunate, stating that the nation has to spend 21 percent of its 2015 budget on debt servicing.

“We are concerned that our economy is currently in perhaps its worst moment in history. Local and international debt stands at $60 billion. Our debt servicing bill for 2015 is N953.6 billion, about 21 per cent of our budget,” the vice president had said.

A spokesman for Mr Amaechi did not return repeated requests seeking comments for the minister’s audio, which was part of a scandalous series that emerged in the run-up to the 2019 elections.

Although Mr Buhari and his appointees have been claiming repeatedly that they met an empty treasury, available facts showed the claim as untrue. The administration met at least $2.07 billion in excess crude accounts as of May 2015 when it came in.

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BREAKING: Court Orders Banks To Unfreeze Accounts Of EndSARS Promoters -|The Republican News

By Fikayo Olowolagba

A Federal High Court in Abuja has ordered the unfreezing of accounts belonging to some promoters of the End SARS protest.

Justice Ahmed Mohammed, who gave the ruling on Wednesday, ordered all affected banks to “immediately defreeze the affected accounts of End SARS promoters.”

Justice Mohammed proceeded to strike out the suit marked: FHC/ABJ/CS/1384/2020 filed by the Governor of the Central Bank of Nigeria (CBN).

Recall that the ex-parte order to freeze the accounts for 180 days was made on November 4, 2020.

The court’s decision was reportedly informed by the withdrawal of all processes filed in relation to the suit by lawyers to all parties.

At the commencement of proceedings, former Attorney General of the Federation (AGF) and Minister of Justice, Michael Aondoakaa (SAN), who appeared for the CBN Governor and Femi Falana (SAN), for those affected by the freezing order resolved to withdraw all the processes filed.

This is to ensure the unhindered progress of the ongoing process of reconciliation, at the various panels of enquiry on police brutality across the nation. (Daily Post)

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#EndSARS: Calls For New Protest Over Freezing Of Accounts, Arrests Of Protesters |The Republican News

#EndSARS protesters at Lekki Tollgate

Controversies have trailed the ex parte order obtained by the Central Bank of Nigeria (CBN) to freeze the accounts of 20 individuals and an organisation linked to the #EndSARS campaign.

Many Nigerians especially youths have taken to social media to condemn the move by the apex bank.

Also, youth representatives at the Lagos judicial panel, who had expressed outrage decided to boycott their participation at the sitting on Saturday.

Rinu Oduala, a member of the panel is said to have been affected. The Lagos Judicial Panel adjourned its sitting till November 14th because members could not form a quorum.

The Nation had earlier reported that a Federal High Court sitting in Abuja authorised the Central Bank of Nigeria (CBN) to freeze the accounts of 20 #EndSARS promoters with immediate effect.

The accounts are domiciled in Access Bank, Guaranty Trust Bank, Fidelity Bank, First Bank, United Bank for Africa, and Zenith Bank.

According to details of the order obtained by The Nation, the request, filed by the apex bank on October 20, was granted by Justice Ahmed Mohammed.

Amongst those affected are Bolatito Racheal Oduala, Chima David Ibebunjoh, Mary Doose Kpengwa, Saadat Temitope Bibi, Bassey Victor Israel, Wisdom Busaosowo Obi, Nicholas Ikhalea Osazele, Ebere Idibie, Akintomide Lanre Yusuf, Uhuo Ezenwanyi Promise and Mosopefoluwa Odeseye.

One of the EndSARS promoters whose account got frozen, Adegoke Pamilerin said, “My account has been frozen for over 2 weeks. Apparently CBN froze my account before they got a court order. Nigeria My Country, where the big and mighty do as they wish”

The Nation learnt that the court directed the banks to freeze forthwith all transactions on the 20 accounts on the list annexed to the CBN’s application as Exhibit A and all other bank accounts of the defendants and respondents for a period of 180 days pending the outcome of investigation and inquiry currently being conducted by the Central Bank of Nigeria.

Many have condemned the move, describing it as an attempt to incite a second wave of #EndSARS protests across the country.

Meanwhile, Inspector-General of Police, IGP Mohammed Adamu, has ordered the deployment of all legitimate force against riotous and violent protests to protect lives and property of citizens.

Popular TV host, Frank Edoho, @frankedoho tweeted, “So this useless government is freezing the account of #EndSARS protesters. Young people came out peacefully to implore the leaders to terminate a section of the police responsible for murders and their response is to freeze accounts? This government contains old fools.”

Also, PDP Candidate for Lagos East Senatorial District, Babatunde Gbadamosi said, “Freezing the accounts of organisers of a peaceful protest is ECONOMIC TERRORISM by the CBN. Does Godwin Emefiele sanction the brutality of SARS?”

Activist Lawyer, Inibehe Effiong said, “Free advice to #EndSARS protesters whose bank accounts have been frozen: Before you go to court or take any legal action, apply for and obtain the CTC of the ex-parte motion with the affidavit and other processes filed by the CBN Governor.

@EiENigeria said, “The Nigerian government wants us, when faced with official actions with which we disagree, to obey and submit without daring to object. Case in view: seizure of passports, freezing of accounts by CBN, continued arrests of #EndSARS protesters, blame game, etc. #EnoughIsEnough”

Investigative journalist, @fisayosoyombo said, “The freezing of @Gatefieldco’s Journalism Fund account by @myaccessbank & Godwin Emefiele’s @cenbank is a disguised attack on press freedom. Because they funded journalists to cover police brutality stories? Did Gatefield start supporting public-interest journalism yesterday?… CBN has now become so idle that it’s most pressing mandate is chasing the court for an order to freeze the accounts of 19 individuals and a company that supported the #EndSARS movement. But ask them to strengthen the naira against the dollar and it’s mission impossible!

@ayosogunro said, “With every passing day, there is more reason for #EndSARS protest. Along with the original issues, now we protest against: #LekkiMassacre and #oyingbomassacre, freezing of protester’s bank accounts, seizing of protester’s passports, the unconstitutional ban on protests.

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Meet Priscilla Ekwere: First Nigerian Female To Have Her Signature On 100 Naira Note |RN


First Nigerian woman to have her signature on Nigerian national currency

For the very first time in Nigeria’s 59-year history, the signature of a woman, Priscilla Ekwere Eleje, goes on the naira.
Eleje, who has been acting director of currency and operations at the Central Bank of Nigeria (CBN), has been confirmed, substantive director.
She is the first female director of currency in the history of the bank, and her signature has been appended on the naira — breaking another glass ceiling.
Ladi Kwali, Nigeria’s foremost potter, is the only woman on the naira, taking a spot at the back of the N20 note.
Insiders at CBN told TheCable that the Godwin Emefiele, the governor of the bank, has been working to ensure more women come to the table.
Source: The Cable
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How Banks, Politicians Hijacked CBN’s N220bn MSME Intervention Fund |RN



…NASME, NACCIMA blame banks for scheme’s flop

By Bimbola Oyesola

President Muhammadu Buhari’s dream to get the economy out of  recession through the Micro, Small and Medium Enterprises (MSMEs) with the injection of about N220 billion into the sector is turning out a tall order.
This is sadly so because the N220 billion set aside by the Central Bank of Nigeria (CBN) for MSMEs financing using five commercial banks has been hijacked and diverted to some wrong hands, Daily Sun investigation has shown.
Under the original programme, entrepreneurs can access loans of N500,000, N5 million, N50 million at 9 per cent interest from Nigerian banks approved for the project.
It was considered a major breakthrough for SME financing at its launch as the regular interest rates were dropped by over 100 per cent for entrepreneurs under the MSME fund.
Each of the 36 states and the Federal Capital Territory (FCT), is also entitled to access as much as N2 billion, to be disbursed to the states through banks, which are expected to effect the disbursements directly to the beneficiaries. But immediately the various state governments got the MSME lsargese, many became emergency entreprenuers, and appropriating the facility to themselves and their cronies.
Banks that signed agreement with the CBN for onward disbursement to entrepreneurs in the country, include United Bank of Africa (UBA), Skye Bank, GTBank, Zenith Bank and Fidelity Bank with stakeholders expressing high hopes of SMEs contributing more to the nation’s Gross Domestic Product (GDP), accounting for over 60 per cent, the effectiveness and transparency of the disbursement of the CBN’s funds will determine the impact on the economy.
In developing economies like Nigeria, that MSMEs hold the key to government’s plan to develop the non-oil sector and generate income from it, hence the need for their empowerment through easier access to credit and specific business-friendly policies.
According to the Director General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, the MSME intervention fund was a concept designed to correct market failures in the financial markets.
According to him, some growth sectors would naturally find it difficult to access fund from the regular or conventional commercial banks because of competitiveness issues as well as the concerns around risk perception of the real sector.
“Besides, the Nigerian banking system has not got much of long term funds, and cost of funds is also very high. Intervention funds are long term and often at single digit. These are the gaps the intervention funds are designed to fill,” he explained.
The CBN has explained that it initiated the fund to unlock the potential of Nigerian MSMEs, thereby shoring up their potential for job creation and enabling them reduce poverty within the country.
“Our optimal goal is to see that this fund gets to our people at the bottom of the economic and social pyramid at single digit interest rate without which it will be impossible to achieve job creation and poverty reduction.
“In order to ensure the attainment of our goal, therefore, the CBN will be committing human, material and financial resources to monitoring both the disbursement and utilisation of these funds in a robust and verifiable manner.”
Though other participating banks have not disclosed how much they have disbursed nor their mode of disbursement, Fidelity Bank, one of the five designated banks, was reported to have disbursed N2.2 billion to the beneficiaries so far.
The report credited to the Managing Director, Mr. Nnamdi Okonkwo, said the loan beneficiaries have been committed to its repayment, adding that the bank has not recorded any default.
He had said that CBN was very serious about the N220 billion SMEs’ fund. “We are witnesses because we have customers who accessed the SME funds through us. We have done about N2.2 billion of the funds. We have got repayment of about N400 million. We haven’t had any default because of the process through which these funds were accessed,” Okonkwo said recently.
But from Nigerian Association of Small and Medium Enterprises (NASME), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers Consultative Association (NECA), Network of Entrepreneur Women (NNEW) and all other reputable Business Management Organisations (BMOs) interviewed, none has accessed any of the funds, raising some questions as to who owns the SMEs that have accessed the fund so far.
While some of the groups said they shunned the fund due to previous experiences, some who approached the banks said their applications were turned down because of the stringent requirements attached to the loans by the banks.
President of NASME, Prince ’Degun Agboade, said the organisation has got nothing from the N220 billion fund despite claims by banks of so many windows open to SMEs to raise funds.
According to him, “I’m not aware of anybody that has got anything. N220 billion was supposed to be given out by the banks at 9 per cent, but there are so many stringent measures, conditions that are not possible to meet, including collateral and unrealistic turnover. It is so cumbersome. Lots of applications were rejected. Even the Bank of Industry (BoI) loan, First Bank has just informed us that it has stopped disbursement because CBN wants it to guarantee the loan 100 per cent. With the way it is structured presently, I think it can never work,” he said.
Though both the real sector and MSMEs have applauded the formation of the new Development Bank of Nigeria (DBN), which they considered would fill the vacuum created by BoI, NASME President said the new bank has equally failed the SME group.
“The bank also said it would not give out loan directly but through commercial banks whose interest would be between 29 and 30 per cent. How would SMEs be able to access such loans?” Agboade queried.
“Banks should tell us who they have disbursed the money to because the way they treat SME is like leper, which is not the practice in other countries like India, China, or Malaysia. We’re told that about 13 windows are available but we cannot access any. The only fund our members have been able to access is Dangote Fund, which is N5 billion at 5 per cent, while banks added 1 per cent as their profit and it was allocated per state, and some states exhausted this within a month. For example, we have over 55 per cent of the SMEs in the country in Lagos alone but this was not factored in while disbursing the funds.”
Lamenting the plight of SMEs, Agboade called on CBN to moderate and prevail on the banks to ensure that the funds actually get to the right group.
Also expressing his displeasure on the fate of MSMEs in Nigeria, the National Vice President of NACCIMA and the Chairman of SMEs group, Alhaji Sanusi Maijamaa, confirmed that no member of NACCIMA has accessed the funds due to their past experiences.
He, however, wondered on which platform the funds being disbursed by the banks if not through the Organised Private Sector (OPS) like NACCIMA, NASME and others.
Maijamaa noted that the system of disbursement was not transparent, adding that the SME clinic launched by the Acting President, Yemi Osinbajo, in Abuja and Aba equally failed to address the problem at hand.
“The conditions set by banks cannot allow our members to get the loans because there are lots of cumbersome requests. We look for the same treatment given to the multinationals. There is need to recognise informality when dealing with SMEs. When they grow, you can now formalise the conditions,” he said.
Maijamaa stated that though there are lots of impacts on what the government is doing, they, however, do not reflect directly on the SMEs. “There is need to involve the grassroots in all these developmental plans because lots of SMEs are in the grass roots. The government also needs to emphasise cluster arrangement, and role of states and local governments should be spelt out clearly to support the intervention of the Federal Government,” he said.
Sharing the same view as others, the Vice President of NNEW, Edobong Akpabio, said it has been frustration galore for the members of the group in accessing loans from any of the commercial banks designated to disburse the fund.
“We have made several applications, but till date, none of us has been able to get anything. Actually, we were happy when we discovered that such fund has been set aside for the SMEs sector but the conditions set by the banks to access the loan are unattainable. This makes us wonder whether it is actually meant for us or another ploy by commercial banks to give it to their privileged clients,” she said.
The LCCI Director General, Muda Yusuf, however, berated government on the management of the intervention fund. He said, “for most of the funds, the deposit money banks are expected to provide 100 per cent cover (to the CBN) for the funds disbursed and this should be done with securities such as treasury bills and Federal Government bonds. The implication is that the banks are made to bear full credit risk for the facility.
“They would be held fully responsible in the event of default. This is why the banks also impose stringent collateral conditions for granting the loans, which invariably creates a major problem of access to the funds, especially by the small scale industrialists or farmers. Some banks are not even keen about intervention funds for this reason. The risk and reward metrics are not often favourable.”
To succeed with intervention fund
The LCCI DG expressed the view that for better results, the risk bearing responsibilities of the banks in the funds should be reduced considerably through other forms of guarantees.
Yusuf lamented that intervention funds lay too much emphasis on equipment and machineries, whereas what most of the small scale industrialists and agricultural investors need is working capital.
“Many are carrying idle capacity because they lack adequate working capital. Funding provision for working capital should therefore be given better accommodation in the intervention funds scheme than is currently the case,” he said.

He also noted that for the desired outcomes to be realised from intervention funds in the promotion of the real sector, some other complementary conditions must be in place. According to him, “infrastructure (especially power and transportation); policy consistency; effective regulatory environment to curb smuggling, faking and counterfeiting, and many more, need to be given attention. Advancing the frontiers of the real sector is not just about funds, the operating environment and policy context must also be right. Unless this is addressed, default rates will remain high and the impact will remain marginal.”
He recalled that one of the biggest beneficiaries of intervention funds is the textile manufacturing sector but till date, the sector is still comatose. Many of the companies, he said, could not repay the loans; some are already in receivership. “This underscores the point that while funding is important, other factors which impact on competitiveness are equally critical,” he stated.
He added further: “The obsession of policy makers (in the context of  interventions funds) for real sector also needs a rethink. There is a perception that for jobs to be created in the economy, focus on funding should be almost entirely in the real sector. But the integrated character of the economy needs to be understood.
“The inter-sectoral linkages also should be appreciated. The distributors, for instance, need funds to buy the products of the manufacturers for onward transmission to consumers; the transporter that moves the products to different parts of the country needs funds to buy and maintain trucks; the fashion designers need funds to buy fabrics from textile manufacturers; the advertising companies that undertake marketing and promotions of the real sector products need funds; real sector needs various forms of IT support, and so on.
“Besides, the service sector of the economy is fast growing and currently creates more jobs and more incomes for citizens and therefore contributes to improving purchasing power in the economy from which all sectors, including the real sector, benefit.  While not diminishing the importance of the real sector, the role of the service sector in wealth creation and employment generation needs to be better appreciated. There is need for the sector to be better accommodated in the intervention funds scheme.” (The Sun)

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Banks Suffer Fraud Cases Worth N16.5 Billion In 3 Years |The Republican News


Central Bank of Nigeria Governor, Mr Godwin Emefiele

The economic recession currently rocking the country has increased the volume of fraud cases in the banking industry, with the attendant loss of money, IFEANYI ONUBA writes

The banking sector recorded 31,736 fraud cases involving the sum of N16.5bn between January 2014 and December 2016, figures obtained by our correspondent from the Central Bank of Nigeria have revealed.

The fraud statistics are contained in the Nigerian Electronic Fraud Report, which was prepared by the Banking and Systems Payment Department of the CBN.

The frauds were perpetrated through various payment channels in the banking sector such as Across the Counter, Automated Teller Machines, cheques and electronic-commerce platforms.

Others are Internet banking, mobile banking, Point-of-Sale and web transactions.

The report stated that in the last three years, there had been more attempts in the number of fraud cases, adding that the development might be linked to the economic hardship being experienced in the country.

For instance, the report stated that the volume of fraud cases rose by 635.3 per cent from 1,461 incidents in 2014 to 10,743 in 2015.

Between 2015 and 2016, the report stated that the incidents of fraud rose by 81.8 per cent from 10,743 to 19,532 cases.

Cumulatively, the incidence of fraud rose by 1,236 per cent during the three-year period.

In monetary terms, an analysis of the report showed that while there had been an increase in fraud volume, the rate of increase could not be achieved financially.

For instance, the report stated that in 2014, out of the total transaction value of N43.85tn in the banking sector, about N7.75bn was fraud-related.

However, it noted that while the transaction volume rose from N43.85tn in 2014 to N48.93tn in 2015, the amount involved in fraud-related transactions declined by N3.38bn or 43.6 per cent from N7.75bn to N4.37bn.

Between 2015 and 2016, the report stated that while the value of financial transactions rose significantly from N48.93tn to N64.18tn, the amount of fraud involved during the period dropped marginally from N4.37bn to N4.36bn.

The report read in part, “Although, values of the year 2016 are almost same with those of 2015, the difference in its volume, when compared to 2015, suggests more success in curbing fraud.

“More attempts in volume can be seen over a period of three years, and the rate is expected to increase significantly if the current recession is to be taken into consideration.

“The current economic recession has and will always drive persons deeper into fraudulent activities.”

In terms of payment channels from which the frauds were perpetrated, the report stated that in 2014, fraudulent transactions conducted through the ATM were 491 cases; Internet banking, 287 cases; and web channels, 218 cases, were the top three.

In 2015, there were 5,133 ATM fraud incidents; PoS, 1,853 cases; and the web, 1,463 cases, accounting for the top three most used channels to perpetrate fraudulent transactions.

In 2016, ATM with 9,522 cases; mobile, 3,832; and web channels, 2,677, were the three most used channels.

The report added, “Apparently, ATM and web channels have consistently appeared in the top three channels used to perpetrate fraudulent transactions for three years running.

“This is something we have to look at collectively in the industry as it can be deduced that ATM channel has been the focal point for fraudsters in the last three years.

“The emergence of mobile channel in this category cannot be extraneous to the various financial products and services we have these days, which ride on mobile platforms.”

Speaking of the increasing rate of frauds in the banking system, financial analysts called on the CBN and the Nigerian Deposit Insurance Corporation to step up their regulatory oversights, adding that sensitive positions in banks should not be given to those who were not members of relevant professional bodies.

Those that spoke to our correspondent in separate telephone interviews are the Head, Banking and Finance Department, Nasarawa State University, Keffi, Uche Uwaleke; and a former Managing Director Unity Bank Plc, Mr Rislanudeen Muhammed.

Uwaleke, an Associate Professor of Finance, said the value system in the country, which celebrates wealth with no questions asked as to the source, needed to be changed.

He said, “There is also a justice system that is very slow and, therefore, fails to act as a deterrent to fraud. Equally are lapses in internal control systems of banks, which are circumvented by fraudulent staff sometimes with the connivance of auditors.

“Furthermore, the flip side of electronic banking is the level of sophistication associated with bank frauds and the specialist skills required in detecting such. So, it is not a surprise that the level of bank frauds is on the rise. Worse still, banking in Nigeria has become an all-comers affair where anybody who can bring deposits is employed.”

As a way forward, he suggested that the control systems in banks should be strengthened.

“Only professionals who belong to bodies that self-regulate their members, such as the Chartered Institute of Bankers of Nigeria, should be assigned to sensitive positions in the banks,” he added.

Muhammed said since bank frauds were a threat to the stability of the financial sector, both the CBN and the NDIC should step up strategies for tackling the menace.

He said, “Recently elevated risk in fraud cases will naturally impact negatively on the individual bank’s loan loss provision, other known losses as well as profitability and capital adequacy ratios.

“The risk of under capitalisation will also impact negatively on solvency ratios. This underscores the imperative for strengthening internal control as well as risk management divisions in banks.

“The Central Bank of Nigeria should ensure compliance by banks of having internal control officers in each branch. This ensures that fraud cases are dealt with timely and proactively rather than reactively or after the fact.”

He stated that in situations where fraud cases were at the corporate level, the chief internal control officers were duty-bound to report directly to the regulators as provided by the law.  (

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Buhari 2 Years On: Economy Struggles To Exit Recession |The Republican News


President Muhammadu Buhari

As the nation marks two years of the President Muhammadu Buhari-administration, the economy is struggling to recover from its worst recession in 25 years, which has hit many Nigerians hard, ’FEMI ASU writes

Still smarting from the far-reaching impact of the recession that the economy slid into shortly after the start of the second year of the President Muhammadu Buhari-administration, many Nigerians are eager to see recovery.

But the Gross Domestic Product report released last week by the National Bureau of Statistics showed that the recession failed to end in the first three months of this year contrary to expectations.

The nation’s GDP contracted by 0.52 per cent (year-on-year) in real terms in the first quarter of 2017, representing the fifth consecutive quarter of contraction since the first quarter of 2016.

The economy had shrunk by 1.5 per cent in 2016, the first full-year contraction in 25 years.

After several months of slowdown in growth on the back of the steep fall in crude oil prices, the economy contracted by 0.4 per cent in the first quarter of 2016, 2.1 per cent in the second quarter, 2.2 per cent in the third and 1.3 per cent in the fourth.

Amid the sustained low oil prices, the resurgence of militant attacks on oil and gas facilities in the Niger Delta last year disrupted the nation’s oil production and worsened government’s revenue woes.

But analysts have said that the way the government handled the economy, particularly the delays by monetary authorities in implementing a flexible foreign exchange policy, exacerbated the impact of weaker oil earnings on the economy.

While the nation has seen a slowdown in the negative growth rates in the last two quarters, the Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane, said the journey to recovery would take time.

“Two years, we have gone down into the pit and we are coming back out. But the recovery journey is slow, painful and it is going to take time. Even if we get 0.1 per cent positive growth, we are out of recession. But that is not enough to make people comfortable,” he told our correspondent on Sunday.

The Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said the Buhari’s government performed below par in its first two years, given the current state of the economy compared to what it was in 2015.

He said, “When the government took over in 2015, the unemployment rate was 7.5 per cent; as of the end of the third quarter of 2016, when the last report was made available, the unemployment rate had gone up to 13.9 per cent. In 2015, the inflation rate was below nine per cent; in April 2017, it was 17.24 per cent.

“In 2014, the GDP grew by 6.22 per cent; in 2015 when the government took over, it grew by 2.78 per cent. In 2016, it contracted by 1.5 per cent. Those are the highlights of parameters you use to measure an economic performance.”

Chukwu said the government should take responsibility for the deterioration of the economy, adding that the government would need to move at a fast pace in driving its economic recovery and growth plan.

The nation’s inflation rate, which climbed to 18.72 per cent in January, fell for the first time in 15 months to 17.78 per cent in February, 17.26 per cent in March, and 17.24 per cent in April.

The stock market has rebounded significantly in recent times as the market capitalisation of listed equities hit the $10tn mark on Friday from N8.716tn on April 21, when the Central Bank of Nigeria established a forex window for investors and exporters to boost liquidity in the forex market.

The foreign reserves, which rose to $30.988bn on May 4 from $25.84bn on December 30, 2016, have declined to $30.494bn as the CBN continued effort to prop up the naira by supplying the forex market.

The naira, which slumped to an all-time low of 520 to the dollar on the parallel market in February, stood at 382 to the dollar on Friday.

Electricity generation in the country has yet to reach the peak generation of 5,074.70 megawatts achieved on February 2, 2016. It stood at 4,206.10MW on Sunday, according to data from the System Operator.

The Global Chief Economist, Renaissance Capital, Charles Robertson, in an emailed report, noted that Nigeria’s per-capita GDP had fallen to around $1,740, from over $3,000 in 2014.

“We think most metrics in Nigeria will be demonstrating improvement in 2017, provided that oil prices and production do not plunge. We are cautiously positive on equities and bonds at an exchange rate of around N400/$,” he said.

Analysts at SBM Intelligence, in a new report on the Buhari’s administration, said perhaps the biggest economic item that dominated the conversation over the last year had been the government’s management of the foreign exchange market and its far-reaching impact on economic performance.

They said, “In this regard, the central bank and the Ministry of Finance have shown less than convincing mastery in handling this hot button issue.

“The announcement in June 2016 of a currency float, which was initially met with delight from investors and the market, turned to be the start of a multi-exchange rate system that bred a mix of frustration and confusion, while doing little to achieve the CBN’s intent of reining in the distortionary effect that short sellers and black marketers were having on the national currency.”

Rewane said the country would not get back to its five-year average growth rate until 2019/2020.

“The government needs to invest and spend. If you are going to be spending only N7tn in a year, which is four per cent of your GDP, that is not going to cut it. You need to do almost three times that for the impact to be felt. As far as I am concerned, everything directionally is okay but in nominal terms, we are still way below what we should be doing,” he added.  (

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Soludo Wrongly Enriched Two Banks With N8bn, Alleged Oshiomhole


Adam Oshiomhole, Prof. Charles C. Soludo


·  You lied, Soludo replies ex-Edo governor

’Femi Asu and Tunde Ajaja

There was a mild drama at the Vanguard Economic Discourse in Lagos on Friday when a former Governor of the Central Bank of Nigeria, Prof. Charles Soludo, and the immediate past Governor of Edo State, Mr. Adams Oshiomhole, made allegations and counter-allegations.

The development, which generated grumblings among the audience, occurred during a discussion session moderated by the founding Group Managing Director/Chief Executive Officer, Guaranty Trust Bank, Mr. Fola Adeola.

Soludo, who delivered the keynote speech on the topic, ‘The hard facts to rescue the Nigerian economy’, had earlier highlighted some of the failures of the President Muhammadu Buhari-led government, particularly in terms of fiscal and monetary policies.

But in his remarks during the panel session, where the Minister of Solid Minerals Development, Dr. Kayode Fayemi, defended the government, Oshiomhole accused Soludo of wrongly allocating millions of dollars to two new generation banks shortly before the naira was devalued.

He said, “I got some intelligence from my comrades who worked in the system and we found out that the CBN under Soludo had just allocated couple of millions of dollars to two, as they were then known, new generation banks.

“And I asked Prof (Soludo), if you were going to devalue by Friday, why did you auction dollar at a lower rate on Thursday? I accused Soludo, I said you have enriched these two young men to the tune of N8bn, courtesy of your internal abuse.

“When the regulator behaved in this manner, then the Nigerian condition is much more serious than we can appreciate it. We need to deal with issues of attitude.”

However, this did not go down well with Soludo, as he said some people tend to change the subject when they did not have an answer to his earlier comment, a response that caused boisterous laughter and clapping by the audience.

At this point, the moderator told him he was running out of his time, but this was greeted with shouts of “No” from the audience.

“This debate has only begun. Adams made the point about exchange rate and exchange allocation to two banks. I want to say for the record that Adams Oshiomhole has lied. I didn’t say he misquoted anything; he has lied.” Soludo stated.

He said at the time, banks were bidding for forex two to three times weekly, and only the successful banks at each of the bids were allocated forex, adding that he was not even part of the bid as there was a committee for the purpose.

“Every bid produced a different exchange rate and there were different winners at every bid. We didn’t do devaluation as the case may be; we had the currency depreciating as the market determined day to day. With all due respect, I think if you (Oshiomole) don’t know what to say, sir, just don’t get into this kind of personal allegation,” he added.

Soludo had earlier said nothing much would be achieved with the 2017-2020 Economic Recovery and Growth Plan, which was released by the Federal Government last week.

“Whose plan is it? Ownership will determine whether the plan is just a public relations document or whether it will be implemented. To what extent is the plan consistent with the APC manifesto, which promised a conscious plan for post-oil economy and to restructure the country and devolve power to units with the best practices of federalism? Is this plan that plan?” the ex-CBN boss asked.

He described the envisaged 15 million jobs to be created under the plan as a “very nice wish.”

“The plan envisages to continue the practice of the past government of borrowing to finance recurrent expenditure. Up until 2018, recurrent expenditure will continue to exceed total revenue. The deficit will continue to exceed capital budget, meaning that capital expenditure will continue to be borrowed, as done by the last government. So, what has changed?” he queried.

Soludo said there were no projections for the trajectory of exchange rate or foreign reserves in the plan, stressing the need for a competitive real effective exchange rate.

He said, “The plan as packaged is a good effort, but in terms of our expectations as a plan for transition to a post-oil economy as promised by the APC, it is a missed opportunity.

“I am willing to bet that not much will happen in terms of the structure of the economy or the structure of fiscal and export revenue at the end of the plan.”

He noted that the current government inherited a bad economy, adding that by May 2015, the Federal Government was already borrowing to pay salaries and about 30 states had challenges meeting their salary obligations.

“The previous government had an unprecedented rate of debt accumulation even at a time of unprecedented oil boom, and was even depleting our foreign reserves instead of more than doubling what it met,” he noted.

Soludo added that most Nigerians acknowledged the Federal Government’s effort in fighting Boko Haram insurgency and corruption.

On the economic front, he said the government had implemented the Treasury Single Account, but that it could have been better implemented.

Soludo said, “Most macroeconomic variables have worsened in the last two years. Inflation from about nine per cent to 19 per cent; dollar exchange rate from about N197 (official) and N215 (parallel market) to now N305 (official) and N465 (parallel); unemployment from 7.5 per cent to 14 per cent; GDP from about two per cent to -1.5 per cent; poverty is escalating and youth agitation increasing; business confidence remains very low; foreign reserves remain depleted, and the current account balance is negative, and sovereign credit ratings have worsened.

“Nigerian workers have suffered a double whammy. The average nominal wages are declining, while real wages dramatically shrunk with high inflationary pressure.”

He stated that the Federal Government had continued to spend over 100 per cent of its revenue on recurrent expenditure as done by the previous government, while borrowing 100 per cent of all its capital expenditure.

“There remains half-hearted commitment to deregulation of petroleum pricing as well as the privatisation of refineries. The budgetary framework remains largely the same with all the institutional inefficiencies. Monetary and exchange rate policies were in their own worlds,” Soludo said.

He added that the economy had suffered massive compression, adding that its size had shrunk to anything ranging from about $354bn (using official rate) to $232bn (parallel rate) from $575bn when the government took over.

“Nigeria has lost the first and second positions in Africa’s ranking,” he said, adding, “We will get out of recession any moment from now with oil price and output increasing. But it will be a miracle if the government is able to return the GDP in US dollar terms to the level it met, even in 2023.”

He congratulated the government for plugging some of the loopholes and stopping some of the bleeding, but added that the challenge was that much of its efforts had focused on the micro.

Soludo added, “While trying to tie down the chickens, we were either stopping the cows from coming in or chasing them away. For example, while we are fixating with stopping the import of toothpicks and stopping the petty traders from taking dollars away, we have created havoc that has shut down many factories and with low capacity utilisation as well as ignited massive capital flight with the attendant impoverishment of millions, escalating unemployment and inflation.

“Put simply, we have missed the macro picture. While we are winning selected micro battles, we are losing the war on the macro economy.”

The Editor-in-Chief, Vanguard Newspapers, Mr. Gbenga Adefaye, said the essence of the discourse was to provide a platform to enrich the debate about the Nigerian economy and assist the government to quickly achieve a turnaround of the depressed economy.

Other panellists were a former Deputy Governor of the CBN, Dr. Obadiah Malaffia; Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf; former Group Managing Director, Diamond Bank Plc, Dr. Alex Otti; Managing Director, Financial Derivatives Company, Mr. Bismarck Rewane; and a member of the National Executive Committee of the Nigeria Labour Congress, Mr. Issa Aremu.

Dignitaries at discourse the included the Publisher of Vanguard Newspapers, Chief Sam Amuka; former Speaker of the House of Representatives, Mr. Dimeji Bankole; former Delta State Governor, Dr. Emmanuel Uduaghan; and former Chairman of Punch Nigeria Limited, Chief Ajibola Ogunshola.  (

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Central Bank Reintroduces Charges On Cash Deposits, Withdrawals




Central Bank Of Nigeria


Akinpelu Dada

The Central Bank of Nigeria on Thursday announced the reintroduction of bank charges on certain categories of cash deposits and withdrawals.

This came about three years after the apex bank stopped the charges.

In a circular to all Deposit Money Banks posted on its website, the regulator said the decision to reintroduce the charges on cash deposits was part of the review of charges on deposits and withdrawals under the cashless policy.

It said the decision was taken at the Bankers’ Committee meeting, which held in Abuja two weeks ago.

The circular, signed by the Director, Banking and Payments System Department, CBN, Mr Dipo Fatokun, stated that the committee decided that the cashless policy should be extended to the remaining 30 states of the federation.

It also directed that with effect from April 1, 2017, banks in the states where the cashless policy was already operating, Lagos, Ogun, Anambra, Abia, Kano, Rivers and the Federal Capital Territory, would begin to impose charges on deposits and withdrawals above N500,000.

Banks will from that date begin to charge individuals 1.5 per cent and two per cent for deposits and withdrawals between N500,000 and N1m.

According to the circular, individuals depositing or withdrawing between N1m and N5m will be charged two per cent and three per cent, respectively.

For amounts above N5m, banks will charge such individuals three per cent and 7.5 per cent for deposits and withdrawals, respectively.

With regard to corporate customers, the CBN stated that deposits and withdrawals under N3m would not attract any charge, but that such customers depositing or withdrawing between N3m and N10m would be charged two per cent and five per cent, respectively.

Also for deposits and withdrawals between N10m and N40m, customers will be charged three per cent and 7.5 per cent, respectively. Deposits or withdrawals above N40m by corporate customers will attract a charge of five per cent and 10 per cent, respectively.

According to the CBN, the new policy on charges will be implemented in selected states on May 1 and August 1, this year; while the total implementation will be concluded on October 1.

The regulator noted that the committee agreed that income generated from the processing fees above the allowable cash limits would be shared between it and the banks in the ratio of 40:60.

However, the CBN said that existing exemptions to the policy such as revenue generating agencies of the federal, state and local governments (for lodgements) will be sustained. Also exempt from the processing fees are embassies, diplomatic missions, multilateral and aid agencies.

The CBN directed lenders to train their employees to enlighten customers on the new policy.  (

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Market Gains N29bn As CBN Reviews Forex Policy |The Republican News


CBN Governor, Mr Godwin Emefiele

Stanley Opara

The Nigerian equities market appreciated by N29bn on Monday as the Central Bank of Nigeria released a new foreign exchange policy in the country with immediate effect.

The Nigerian Stock Exchange market capitalisation rose to N8.738tn from N8.709tn, while the NSE All-Share Index closed at 25,249.49 basis points from 25,164.91 basis points.

The new policy is the outcome of the last Thursday’s directive by the National Economic Council for immediate review to stem the widening gap between the inter-bank foreign exchange and parallel market rates.

The CBN said in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions, it would henceforth be providing direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, with immediate effect.

The equities market started the week on a positive note, advancing by 0.34 percent, to settle the year-to-date return at -6.05 per cent. There were  10 gainers and 18 losers.

A total of 110.016 million shares worth N985.667m were traded in 2,160 deals.

PZ was the top gainer for the second consecutive trading day, advancing by 9.04 percent, to close at a year high of N14.60.

Diamond Bank Plc, Nascon Allied Industries Plc, Nigerian Breweries Plc and Caverton Offshore Support Group Plc also appeared on the top gainers’ list appreciating by 4.88 per cent, 4.55 per cent, 4.18 per cent and 3.33 per cent, respectively.

Meanwhile, Forte Oil Plc declined the most in share price by 5.02 percent to close at N53.87. UACN Plc, Nigerian Aviation Handling Company Plc, Honeywell Flour Mill Plc and Neimeth International Pharmaceuticals Plc also appeared on the top losers’ table dropping by  4.95 per cent, 4.67 per cent, 4.55 per cent and 4.35 per cent, accordingly.

The NSE food and beverage index was the only index to close positive, with the oil/gas, banking and insurance indices declining by 0.63 per cent, 0.20 per cent and 0.11 per cent, respectively, while the industrial index traded flat.

Responding to the state of the market, analysts at Meristem Securities said, “The much-expected upturn witnessed in the market today can be attributed to bullish activities on certain large-cap tickers, as well as intensified position-taking ahead of the 2016 financial year earnings releases and corporate actions.

“As we expect this to continue for most of the week, we advise value-seeking investors to temper their optimism with caution.”

Meanwhile, there was a decline in system liquidity, resulting in a 2.57 percent increase in the average money market rate to 20.82 percent, at the close of the trading session. The open buy-back and overnight rates rose by 2.67 per cent and 2.47 per cent, respectively, to settle at 20.50 per cent and 21.14 per cent, accordingly.

Activities in the Treasury bills space were characterised by bearish sentiments on February 17, 2017.

The one-month, three-month and six-month instruments recorded yield increases of 0.15 per cent, 0.02 per cent and 0.32 per cent, respectively. The average Treasury bills yield stood at 16.24 per cent (+0.16 per cent), at the close of Monday’s trades.

Similarly, in the treasury bonds space, yields advanced across most instruments, save for the March-2036, May-2018 and June-2019, which recorded declines of 0.04 per cent, 0.18 per cent and 0.03 per cent, accordingly. Consequently, the average bond yield increased by 0.12 per cent, to peg at 16.65 per cent at the close of trades.

The naira continued its downward trend at the parallel forex market, as it depreciated by 0.77 percent, to settle at N520/dollar. However, the currency appreciated by 0.08 per cent at the interbank forex market, to close at N305.25/dollar.  (

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