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Economic hardship: FG to expand cash transfers to aid 12m households amid rising costs

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…CBN implements measures to stabilise Naira, combat inflation

In a response to the surging cost of living, the Nigerian government has announced plans to significantly expand its direct cash transfer initiative, aiming to support an additional 12 million households.

This move is set to boost the existing program that currently assists approximately 3 million people.

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, disclosed the government’s intentions at a recent retreat in Uyo, Akwa-Ibom state, on Wednesday, February 21.

The decision comes as the government seeks to alleviate the financial strain on the nation’s poorest and most vulnerable citizens.

According to the finance minister, “The presidential panel on the social investment programmes, have prepared to go to Mr. President with an internal recommendation to restart the direct payments to the poorest and the most vulnerable. Everything is being done to ease the pain.

“We know that there’s been about 3 million beneficiaries now, but given the way the rates have gone, there are probably another 12 million people, households that can benefit from that payment.”

The Minister noted that the expansion of the direct cash transfer aims to reach a wider population struggling with the economic situation and to put more money directly in the hands of those who need it most, allowing them to prioritise their needs and alleviate poverty.

The decision to inform the President of the Panel’s decision before the final report is completed is to keep the President abreast of developments.

Wale Edun stated that technology will be used to ensure smooth and transparent payments, avoiding manual processes and delays.

He said, “The only thing delaying that is not waiting for the end of the report. It is something that the intervention is meant to happen immediately.

“We have experts in technology, the commitment was to make sure that we use technology to ensure that we have a seamless payment, a seamless movement between the registered and the direct beneficiaries, without any manual processes in between. So it’s taking time to automate that process immediately so that direct payment will resume.”

The Minister reiterated President Bola Tinubu’s intervention to release 60,000 metric tonnes of food grains.

He said, “The goal is to put food, to put feed into the mill, into the market, in an attempt to drive down the cost of food and make food available. Right now, that is the key priority in terms of the fiscal side, in terms of the government side.”

Defending the plan of the direct cash transfer to the poorest and most vulnerable in society, Wale Edun argued that “history has shown, evidence has shown that when you pay someone directly, you put money in their hand. It reduces poverty because they decide where the shoe is pinching most.

“So it is a direct benefit, it has a direct effect on poverty. It alleviates, and there’s a commitment to immediately start that process. So that is, as far as these interventions are concerned and the landscape which we as a team are facing, we have a commitment to help to bring down inflation.

“Growing the economy, creating jobs and lifting millions and millions of Nigerians out of poverty, that’s the ultimate goal of President Bola Tinubu and his economic policies.”

The Minister acknowledged that the historical reliance on “Ways and Means” financing was a source of inflation. The government, he said, is committed to reducing this debt burden through various financial and revenue-generating initiatives.

He stated, “On the monetary side, Ways and Means have been identified, and we too agree that the historical legacy of Ways and Means that was inherited has to be dealt with, and has to be paid out one way or the other. And those are the financial engineering, those are the revenue initiatives that we are focused on to remove that burden, that inflationary burden on the economy.”

Edun said that close collaboration between the Ministry of Finance and the Central Bank is crucial in tackling inflation and stabilising the Naira.

To this end, the Central Bank is using various tools to achieve these goals, including stabilising interest rates and managing foreign exchange rates.

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Mobile channel most vulnerable, as financial institutions lose N17.67bn to fraudsters in 2023

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Latest report by the Nigeria Inter-Bank Settlement System (NIBSS) on Annual Fraud Landscape (January to December 2023) has revealed that commercial banks, Point of Sales (PoS) operators and others lost about N17.67 billion to fraudsters in 2023.

The report published on its website on Monday identified mobile channels as the most vulnerable avenue for fraudsters notably Web and POS businesses.

The report noted that fraud perpetrated via mobile channels increased by five percent compared to the previous year.

It also suggested some of the regulations inputted to check fraud in financial institutions need detailed examination, modification and reinforcement.

According to the statistics revealed by the report, fraud count dropped by six percent to 95,620, as actual loss from fraud grew by 23 percent in 2023 when compared to 2022 with the first quarter being the month with the highest fraud volume in 2023 and the fourth quarter being the month with the highest fraud value.

It also disclosed that the month of May recorded the highest fraud count of 11,716, followed by February with 9,492 while October saw the highest actual loss in 2023 at N3.7 billion, followed by January with N2.7 billion. It said the count of Web Fraud decreased by 38 percent and ATM fraud recorded a 64 percent reduction from 2022 to 2023.

Also, in 2023, people aged 40 and above remained the primary targets of fraudsters, which NIBSS said signified a persistent focus on the targeting strategy of fraudsters.

“This sustained trend emphasises the enduring appeal of the demographic group as potential victims, reinforcing the need for continuous efforts to educate and protect individuals in this category from fraudulent activities,” NIBSS said.

In 2023, a total of 80,658 unique customers fell for the gimmicks of fraudsters which is four per cent less than 84,130 customers recorded in the previous year.

“This decline, though apparent, does not diminish the severity of the issue, urging the financial industry to remain vigilant, enhance security measures and collaboratively address the tenacious challenges posed by fraud,” it said.

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Transcorp Hotels approves N2bn dividend payout, reports N42bn revenue

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By our reporter

The board of Transcorp Hotels Plc has approved a N2bn dividend payout to shareholders at its 10th Annual General Meeting (AGM).

The AGM held in Abuja on Monday provided an opportunity for shareholders to assess the Company’s 2023 performance.

The results showed Transcorp Hotels’s continuous growth, as well as new revenue and profit records set in the year under review.

As contained in the Company’s annual report, revenue grew by 36.2 percent to N41.46 billion in 2023 from N30.44 billion in 2022, while gross profit grew 37 percent to N29.79 billion from N21.74 billion in 2022. Profit before tax grew by 104.8 percent to N9.48 billion from N4.63 billion in 2022.

Chairman, Board of Directors, Emmanuel Nnorom remarked, “Our exceptional performance in 2023 underscores our unwavering commitment to excellence and sustainable growth. Our strict adherence to corporate governance principles has been fundamental in guiding our strategic decisions. This impressive achievement and our confidence in continued business growth has consistently improved shareholder return.”

He announced that the Board of Directors has approved that over N2 billion be paid as dividend to the Company’s shareholders, an announcement that was welcomed with rousing applause and approval by the shareholders.

Managing Director/CEO, Dupe Olusola, stated that 2023 was a year of exceeding performance as the Company leveraged increased demand to set new operational and financial records.

“By strategically investing in opportunities that align with our growth objectives, we have achieved impressive outcomes. Our business expansion has been propelled by reinforcing our capital base, enhancing operational efficiency, and exercising fiscal responsibility to foster sustainable growth and create value for all our stakeholders,” Dupe Olusola said, adding that the positive momentum created by the Company’s successful strategy offers confidence for its 2024 outlook and beyond.

She acknowledged the resilience and dedication of her team, stressing that the impressive performance reflects their commitment and hard work.

Chief Olatunde Okelana, a longtime shareholder of the Company expressed his excitement at the year-on-year growth and his confidence in the future growth of the Company.

“I have watched this Company grow in leaps and bounds over the years. Returns to shareholders is growing impressively every year, and we owe this to our experienced board and excellent management. I am excited about what the future holds for our Company,” Chief Okelana said.

Another shareholder Bisi Bakare, commended the management of Transcorp Hotels, stressing the importance of the company’s core values of Excellence, Execution and Enterprise. “The triple Es have been the bedrock of the business and have yielded profit.”

 Transcorp Hotels is strengthening its asset base through ongoing expansion efforts. A new world-class event centre is expected to open before the end of 2024. The 5,000-capacity event centre is purpose-built to host both local and international events and exhibitions.

The Company is also developing a 315-room 5-star hotel at the heart of Ikoyi, Lagos. Through the property, Transcorp Hotels will be able to further tap into the global luxury hotel market, estimated to expand to $107.77 billion in 2024, reaching $157.59 billion by 2029.

Transcorp Hotels Plc is the hospitality subsidiary of Transnational Corporation Plc (Transcorp Group), one of Africa’s leading, listed companies with strategic investments in the power, hospitality, and energy sectors. Transcorp Hotels is redefining hospitality standards in Africa through its businesses, including the iconic Transcorp Hilton, Nigeria’s flagship hospitality destination, and digital platform, Aura by Transcorp Hotels.

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Ways & Means: FG borrows additional N3.8trn from CBN in six months

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The Federal Government of Nigeria received an additional N3.8 trillion in what appears to be fresh Ways and Means Borrowing in the last six months of 2023.

This is according to provisional data published in the latest Statistics bulletin for the fourth quarter of 2023 recently released by the central bank.

The CBN’s provision data show that the total figure rose from N4.4 trillion at the end of June 2023 meaning that the cumulative Ways and Means balances due by the government now stand at N8.2 trillion as of December 2023.

The Ways and Means provision serve as a mechanism enabling the government to secure short-term or emergency financing from the CBN to address cash flow gaps.

Total Ways and Means balances as of May 2023 when the Tinubu administration took over was N26.95 trillion. However, the balances were securitised as included as part of the federal government’s domestic debt profile.

A cursory analysis of the data shows the balance at the end of June 2023 was N4.36 trillion indicating that the prior month balances may have been moved to the Debt Management Office.

However, from July 2023, the balances increase every month, first to N4.5 trillion in July, then N5.1 trillion in August, crossing the N5.1 trillion mark for the first time.  By September, the total was N6.4 trillion, representing the single largest additional borrowing for a month with about N1.3 trillion. It then climbed to N7.2 trillion in October before rising marginally to N7.6 trillion in November.

At the end of the year, in December, the total hit N8.21 trillion, suggesting that Ways and Means increased by 88 percent in six months.

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