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Naira swap: Heavy protest rocks CBN Headquarters over Supreme Court ruling

Published

1 year ago

February 9, 2023

NewsDirect

…Buhari, Emefiele in closed-door meeting

…As S’Court bars FG from Feb.10 deadline

…Extend Feb.10 deadline, revisit cashless policy — Govs

Olaseinde Gbenga, Abuja

The Presidency and the authorities of the Central Bank of Nigeria (CBN) may have been cut in another mist over the Naira redesign controversies, as the Supreme Court of Nigeria on Wednesday granted an order restraining the Federal Government from carrying on with the full implementation of the demonetisation policy.

A seven-man panel of the Supreme Court led by Justice John Okoro, in a unanimous ruling, granted an interim injunction restraining the Federal Government, CBN and their agents and commercial banks from implementing the February 10 deadline set for the old denominations of 200, 500 and 1,000 Naira notes to cease from being legal tender.

Justice Okoro, who delivered the ruling on the motion, held that after careful consideration of the motion ex parte the application is granted as prayed, “An order of Interim Injunction restraining the Federal Government through the Central Bank of Nigeria or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”

The apex court further held that the Federal Government, CBN and commercial banks must not continue with the deadline pending the determination of a notice in respect of the issue on February 15.

The verdict trailed the legal suit instituted by three northern states – Kaduna, Kogi and Zamfara – which in a motion ex-parte filed on February 3rd, prayed the Supreme court to halt the CBN Naira redesign policy.

The three States had specifically applied for an order of Interim Injunction restraining “the Federal Government through the Central Bank of Nigeria or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunction.”

Moving the application on Wednesday, counsel to the applicants, Mr A. I. Mustapha, SAN said that the policy led to an “excruciating situation that is almost leading to anarchy in the land.”

He urged the apex court to grant the application in the interest of justice and the welfare of Nigerians.

He referenced the CBN statistics which put the number of people without bank accounts at over 60 per cent.

Lamenting that the few Nigerians with bank accounts have not been able to access their monies from banks as a result of the policy, he argued that unless the Supreme Court intervenes, the situation will lead to anarchy because most banks are already closing operations.

Justice Okoro adjourned to February 15, 2023 for hearing of the main suit.

…Buhari receives CBN Gov. in Aso Rock after Court order

Meanwhile, barely few hours after the Court order, President Muhammadu Buhari on Wednesday, again received the Governor of CBN, Godwin Emefiele in Aso Rock, Abuja.

The meeting it was gathered was not unconnected with discussions over the controversies which have trailed the implementation of the naira redesign policy which has attracted wild reactions following the scarcity of naira notes and its attendant consequences.

…Protest rocks CBN Headquarters over Supreme Court ruling

Meanwhile, a Civil Society Organisation, the Civil Society Central Coordinating Council (CSCCC) on Wednesday, stormed the headquarters of the CBN in Abuja, to protest against the ruling of the Supreme Court on the deadline for use of old Naira notes.

The National Coordinator of CSCCC, Obed Okwukwe, while speaking on

Wednesday, urged Buhari to issue an executive order maintaining February 10 as the deadline for use of old naira notes.

Okwukwe added that the apex court order did not restrain the exercise of the constitutional powers of the president.

He also called on the Supreme Court not to yield its platform for election riggers to have access to illicit cash to compromise the forthcoming elections.

…Extend Feb. 10 deadline, revisit cashless policy — Govs to Buhari

Meanwhile, the 36 State Governors in Nigeria have urged President Buhari to extend the deadline for the implementation of the old naira notes swap with its new equivalent.

The Governors, under the aegis Nigeria Governors’ Forum (NGF), made the demand in a letter addressed to the President dated February 6, 2023, signed by the Chairman of the Forum Governor Aminu Tambuwal of Sokoto State.

The Governors also urging Buhari to revisit the cashless policy of the CBN, said in the letter, “Even though the identified constraints are to be found in almost every state in the country, they are particularly evident in states like Borno in the North East and Bayelsa in the South-South where one finds a pitiable number of banks located only in the State capital which would basically render the workability of the new policies impossible for now.

“The speed of implementation of the policy is a recipe for anarchy in the country and we urge a re-think of the policy. Regarding the reviewed cash withdrawal limit, we have found from synthesising experiences across the country that the informal sector in the States, particularly in the Northern and Niger Delta States almost wholly depends on cash transactions because of the nature of their trade.

“It is our view, Sir, that an immediate limitation in the use of cash without robust engagement with stakeholders as well as the provision of accessible alternatives will deny such people legitimate sources of livelihood.

“We fear that the cumulative effect of these unintended but very profound and probable consequences of these policies would be a rise in the number of unemployed and unengaged persons who will inevitably resort to crime to make ends meet. This has a dangerous implication for the security of the country and the potential to derail Mr President’s security agenda.

“We most respectfully pray Mr President to approve an expanded time frame for the implementation of the policy and direct the CBN to make the new notes available within the enlarged time frame.

“Direct a thorough assessment of the prevailing economic conditions related to the implementation of the currency change and cash withdrawal limit policies. Direct that States be involved in future discussions regarding the policies in order to have revised policies that would recognize and consider states’ peculiarities.

“Consider and approve the putting in place of necessary infrastructure and facilities within a reasonable time frame to facilitate the implementation of the policy, including introducing incentives to encourage the use of digital payment solutions. This will help reduce the pressure on physical cash and promote financial inclusion, investing in infrastructure to expand access to financial services.

“Direct that a robust enlightenment campaign be mounted to create sufficient awareness in the citizens of the thrust of the policy. This will help people better understand the implications of the naira redesign and cash withdrawal limits and how to use digital payments platforms.”

The naira redesign policy has been clouded with controversies with the scarcity of naira notes biting hard on the masses, a situation which has generated into protests across the country.

Nigerians have begun to fear the situation may degenerate into a national crises that may affect the general elections, as political parties have begun to suspend their campaigns.

In consultation, President Buhari had on Tuesday met again with the CBN Governor, over the scarcity of naira notes in the Country.

In attendance were also Governor of Sokoto State and Chairman of the Nigeria Governors Forum (NGF), Aminu Tambuwal; Kebbi State Governor, Atiku Bagudu; the Chief of Defence Staff, Lucky Irabor; and the Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa.

The Federal Government, had on Tuesday, accused opposition political parties that went to court to restrain President Muhammadu Buhari, from stopping, extending or interfering with the Naira swap deadline date, of being inconsiderate.

It also accused the parties of politicising the situation, stressing that they were not mindful of the plight of Nigerians over the currency crunch, but have turned the situation into an instrument of political game.

Recall that on Monday, 14 political parties threatened to boycott the February 25 election should the CBN extend the February 10 deadline for the currency swap which it had earlier announced.

This was just as a High Court of the Federal Capital Territory restrained the President, the CBN, its Governor, Mr. Godwin Emefiele and 27 commercial banks from suspending, stopping, extending or interfering with the currency swap terminal date.

The order was handed down on Monday by Justice E. Enenche following an application by four political parties.

Reacting to this, while speaking at the 23rd edition of the PMB Administration Scorecard Series (2015-2023), which featured the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development in Abuja, the Minister of Information and Culture, Lai Mohammed, said the action by the political parties was unscrupulous.

He said, “Recall that after his (Buharis’) meeting with the Progressives Governors’ Forum on Friday, President Buhari urged the citizens to give him a seven-day window to resolve the currency crunch that has emanated from the implementation of the Naira redesign policy.

“Unfortunately, on Monday, some opposition political parties ran to court to obtain an injunction restraining Mr President and the CBN from extending the February 10 deadline for Nigerians to exchange their old notes for new ones.

“These curious actions by the parties concerned are a clear evidence that the opposition has turned this whole issue into a political game, preferring to make Nigerians suffer more on the altar of an unconscionable political gamesmanship.

“Or how else can one explain the fact that these unscrupulous opposition parties do not want any action that could reduce the pains being experienced by Nigerians?

“How else can one explain the fact that they have decided to legally hamstring Mr President, in particular, from providing any relief for Nigerians suffering from the cash crunch?”

He argued that it was bad politics when one puts the interest of desperate political parties over and above that of Nigerians.

Related Topics:CBN Headquarter Naira swap Supreme Court

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Cybersecurity levy ill-timed, will impact adoption of digital transactions — Andersen

Published

17 hours ago

May 8, 2024

NewsDirect

…As CBN exempts 16 transactions

…SERAP alleges levy violates constitution, human rights regulations

Global financial advisory and tax firm, Andersen in Nigeria, has described the introduction of the National Cybersecurity levy as ill-timed.

The global firm noted that the new levy will negatively impact the adoption of digital transactions in the country.

The Central Bank of Nigeria (CBN) on 6 May 2024 issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024 (“the Act”).

According to the Act, a levy amounting to 0.5 percent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund (NCF), overseen by the Office of the National Security Adviser.

According to the Apex Bank, Financial institutions are required to apply the levy at the point of electronic transfer origination. The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution.

They are also required to start implementing the levy within two weeks from the issuance of the Circular. By implication, deduction of the levy by financial institutions should commence from 20 May 2024. However, financial institutions are to make their remittances in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month.

Reacting via a comment seen by Nigerian NewsDirect, Andersen in Nigeria said, “The introduction of the new levy has elicited mixed reactions from stakeholders as it will inevitably increase the cost of doing business in Nigeria and may impact the growth in adoption of digital transactions.”

“While the government continues its drive to increase revenue, the introduction of this additional levy may appear ill-timed considering the current economic climate vis-a-vis the government’s commitment in the National Tax Policy of 2017 to reduce the number of taxes in Nigeria.”

The firm also opined that, “Financial institutions and payment service providers will also need to adjust their financial and operational strategies to accommodate and account for the new levy to ensure they remain compliant while managing additional costs of compliance.”

It added that business owners who rely heavily on digital transactions for receiving payment may see an increase in operational costs due to considerations on adjustments in pricing and cost transfer.

“It is therefore important for stakeholders and businesses to analyse the financial impacts of this directive on their cash flow.”

“In the meantime, Andersen will continue to monitor this space and provide updates where necessary,” the comment read.

However, the CBN listed 16 banking transactions exempted from the new cybersecurity levy.

The exemptions include; Loan disbursements and repayments, Salary payments, Intra-account transfers within the same bank or between different banks for the same customer, Intra-bank transfers between customers of the same bank, Other financial institutions’ instructions to their correspondent banks, Interbank placements.

Others include Banks’ transfers to CBN and vice versa, Inter-branch transfers within a bank,Cheques clearing and settlements, Letters of Credits, Banks’ recapitalisation related funding – only bulk funds movement from collection accounts, Savings and deposits including transactions involving long-term investments such as Treasury Bills, Bonds and Commercial Papers, Government Social Welfare Programs transactions e.g. Pension payments, Non-profit and charitable transactions including donations to registered non-profit organisations or charities, Educational Institutions transactions, including tuition payments and other transactions involving schools, universities or other educational institutions and Transactions involving the bank’s internal accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.

Reacting also, the Socio-Economic Rights and Accountability Project (SERAP) has given President Tinubu 48 hours to withdraw unlawful CBN directive imposing cybersecurity levy on Nigerians

The rights group claimed that the new levy violates the provisions of the Nigerian Constitution 1999 [as amended] and the country’s international human rights obligations and commitments.

It therefore urged President Bola Tinubu to use his “good offices to immediately direct the Central Bank of Nigeria (CBN) to withdraw the cybersecurity levy.”

SERAP also urged the President “to stop Mr Nuhu Ribadu and the office of the National Security Adviser (NSA) from implementing section 44 and other repressive provisions of the Cybercrimes Act 2024 as it flagrantly violates the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights and International Covenant on Civil and Political Rights to which Nigeria is a state party.”

SERAP urged him “to direct the Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN to immediately prepare and present a bill to amend section 44 and other repressive provisions of the Cybercrimes Act 2024 to the National Assembly so that those provisions can be brought in line with the Nigerian Constitution and the country’s international human rights obligations.”

In a statement today signed by SERAP deputy director Kolawole Oluwadare, the organisation said, “The Tinubu administration must within 48 hours withdraw the patently arbitrary and unlawful CBN directive purportedly imposing cybersecurity levy on Nigerians.”

SERAP said, “Section 44(8) criminalizing the non-payment of the cybersecurity levy by Nigerians is grossly unlawful and constitutional.”

The statement, read in part: “Our lawyer Ebun-Olu Adegboruwa, SAN, is already preparing the necessary court papers should the administration fail or neglect to act as recommended.”

“The administration must urgently take concrete and effective measures to ensure the repeal of section 44 and other repressive provisions of the Cybercrimes Act 2024.

“If the unlawful CBN directive is not withdrawn and appropriate steps are not taken to amend the repressive provisions of the Cybercrimes Act within 48 hours, SERAP shall consider appropriate legal actions to compel the Tinubu administration to comply with our request in the public interest.

“Withdrawing the unlawful CBN directive and repealing the repressive provisions of the Cybercrimes Act 2024 will be entirely consistent with president Tinubu’s constitutional oath of office requires public officials to uphold the provisions of the constitution, and the rule of law and abstain from all improper acts.

“The repressive provisions of the Cybercrimes Act 2024 are clearly inconsistent and incompatible with the public trust and the overall objectives of the Constitution. A false oath lacks truth and justice. The oath statements require the oath takers to commit to uphold and defend the Constitution.

“Section 14(2)(b) of the Nigerian Constitution of 1999 [as amended] provides that, ‘the security and welfare of the people shall be the primary purpose of government.

“The CBN yesterday has directed banks and other financial institutions to implement a 0.5 percent cybersecurity levy on electronic transfers on the basis of the section 44 44(2)(a) of the Cybercrimes Act 2024 purportedly imposing a “a levy of 0.005 equivalent to a half percent of all electronic transactions value by the business specified in the second schedule of the Act.

“The money is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).”

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UBA gross earnings rise by 110% in Q1, 2024

Published

17 hours ago

May 8, 2024

NewsDirect

United Bank for Africa Plc (UBA) has recorded a 110 percent increase in its gross earnings for its financial results for the first quarter ended March 31st, 2024.

The results showed a strong growth across key performance measures.

The Group’s results, which were released to the Nigerian Exchange Limited (NGX) on Friday May 3rd, 2024, saw outstanding year-on-year increases: Gross Earnings rose by 110 percent, from N271.1billion to N570.2 billion; Interest Income grew by 130 percent, to N440.7 billion. Operating Income increased by 115 percent, from N175.7 billion in 2023, to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 Full Year Audited Financials, UBA again saw Profit Before Tax rising significantly by 155 percent from N61.7 billion in Q1 2023, to N156.34 billion in Q1 2024; while Profit After Tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165 percent year-on-year.

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said the Group delivered strong first quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification and effective risk management and governance.

He said, “Our record Q1 profit before tax was delivered with triple digit gross earnings growth, supported by very strong interest and non-interest income. Fees and Commissions rose by 118% year-on-year on the back of improved efficiencies and continued digital adoption. This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8 percent.”

“The Group’s balance sheet grew steadily with Total Assets increasing by 23 percent to N25.4 trillion. Customer deposits closed at N18.4 trillion, recording a 23 percent increase year-on-year, largely attributed to growth in current accounts and savings accounts.

“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”

Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance continued to deliver.

He said, “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions. We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk adjusted revenues and cost discipline, while maintaining very sound asset quality.”

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets,” Nwaghodoh stated.

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Rivers APC urges Assembly members to impeach Gov. Fubara

Published

17 hours ago

May 8, 2024

NewsDirect

…As Fubara rolls out road projects ahead of one year in office

By Barth Ndubuwah, Port Harcourt

The Rivers State chapter of the All Progressives Congress (APC) has urged its members in the state House of Assembly to initiate the impeachment process against Governor Siminalayi Fubara.

Chairman of the APC in Rivers State, Chief Tony Okocha, said in a press conference in Port Harcourt on Tuesday that the impeachment process was necessary because the governor “has insulted the sensibility” of President Bola Ahmed Tinubu, who waded in to resolve the lingering crisis in the state.

The APC Chairman remarked that the impeachment process was necessary in view of the Governor’s blatant refusal to honour the peace agreement initiated by President Bola Ahmed Tinubu between Fubara and the Minister of the federal capital territory, FCT, Nyesom Wike, some months ago and his recent declaration of the lawmakers’ seats vacant.

Recall that on Monday, Governor Fubara had declared, for the first time since the commencement of the crisis, that the APC lawmakers do not exist in the eyes of the law, adding that “those groups of men who claim that they are Assembly members, they are not existing… their existence and whatever they have been doing is because I allow them to do so. If I don’t recognize them, they are nowhere.”

Meanwhile, as the Gov Siminalayi Fubara-led administration turns one year in office on May 29/5/2024, the Rivers State government has rolled out a 20-day action-packed programme commencing from 14/5/2024 to mark the period.

Addressing the media Tuesday in Port Harcourt, the Chairman of the Planning Committee and Secretary to the State Government (SSG), Dr Tammy Danagogo said the event will commence on 14/5/2024.

According to him, the old Bori Road will be commissioned that day to kick-start the anniversary.

The next day being 15/5/2024, the Andoni Section of the Unity Road will be inaugurated, according to him.

Conversely, the N80bn 31 km Elele- Omoku Road will be flagged off on 16/5/2024.

On 17/5/2024, the N21bn Emohua- Kalahari Road will be commissioned and on 20/5/2024. Egbeda internal roads will be inaugurated.

Other activities he said include Commissioning of Port Harcourt Electrical village, Phase 1, Rivers Economic Investment Summit, 2024. These events will be held on 21,22 and 23/5/2024 respectively.

Flagoff of Okania-Ogbogoro Road, Phase 2, and Trans- Kalahari Roads shall take place on 24 and 30/5/2024 respectively, while Omoku-Egbema dualised Road shall be commissioned on 25/5/2024.

“Her Excellency,wife of the Governor, Mrs Valerie Fubara as part of the one year anniversary shall host Rivers State children to a party on 27/5/2024 being Children’s Day. And on the evening of that same day,there will be a State Banquet and to sum it up,a book on Rivers State will be unveiled.

“Launching of youth development program and accountability forum, where the media and stakeholders will be given the opportunity to ask the Governor and his Cabinet questions have been slated for 28 and 29/5/2024.

“On 31/5/2024 and 1/6/2024, certificates will be presented to selected Traditional rulers,coupled with praise night respectively,” the SSG said.

Rivers International Marathon he said will equally take place on 1/6/2024.

“The event will be rounded off on 2/6/2024 with a thanksgiving at St Paul’s Anglican Church, ABA Road,” he said.

Dr Danagogo emphasised that Governor Fubara’s administration is poised to complete all its projects before leaving office. He noted that these are just a few projects chosen by the Governor to mark this auspicious occasion, stressing that the administration has done a lot more within the period under review.