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Mob attacks: Banks shut branches as Naira scarcity crisis worsens nationwide

Published

1 year ago

February 7, 2023

NewsDirect

…Branch managers lament new note supply shortage

…Banks scant of cash deposit

…EFCC arrests operations manager of bank for hoarding N29m

…CBN threatens Sterling Bank for allegedly hoarding new Naira notes

…Mans State branches with heavy security presence

…Court stops CBN from shifting deadline, as three APC States drag Buhari’s govt to court

…New Naira Notes scarcity: Police warn mischief makers

By Seun Ibiyemi

Following several attacks on banks and vandalisation of properties within their premises across the Country, head offices of banks have directed their branches to shut down banking halls operations except for urgent cases.

This is even as branch managers of banks complained of new Naira notes supply shortage.

Efforts by staff of Nigerian NewsDirect to withdraw cash from five banks proved abortive. The managers complained that there was no allocation of New Naira from the Head office. He complained that staff resumed work with no operation awaiting arrival of New Naira notes from the Head office. He lamented that there was no cash deposit also from customers which paralysed operations of the bank.

Investigation by Nigerian NewsDirect shows that in Lagos, several branches of First Bank, United Bank of Africa, GT Bank, Stanbic IBTC, Wema, Fidelity, Sterling, Providus, Citibank banks, shut banking halls and opened only for Automated Teller Machines (ATMs), as customers coming for cash transactions and transfer on counter were not allowed into the premises

On Monday, cars and properties of a First Generation Bank parked were vandalised at Sango-Ota in Ogun State. Also at Abule Egba in Lagos State, customers of a first generation bank attacked female officials of the bank on demand for N50,000 and could only receive N2,000.

Recall that since citizens began to face frustration from getting withdrawals from their banks, customers have begun to take aggressive actions at the counters and cubicle of Automated Teller Machines (ATMs), a development that led some banks beefing up their premises with more security personnel.

The aggression over the weekend recorded attacks in Ibadan, the Oyo State capital where the facility of a Wema Bank was vandalised by irate mob, while in Benin, at the University of Benin there was a face off between students and military men over withdrawals at the ATM, a development that led to vandalism.

Investigation on Monday revealed presence of heavy security personnel at the Oke Ilewo area of Abeokuta, the host Community of the Central Bank of Nigeria (CBN) in Ogun state branch.

In the early hours of Monday, Ogun CBN and its environs woke to witness the presence of heavily deployed security operatives to man the Apex bank branch for fear of possible attacks by angry mob.

It was gathered that there was an intelligence report that some individuals might attack the bank over their inability to access the newly redesigned Naira notes.

It was reported that heavy armed policemen were positioned at strategic locations to prevent any breakdown of law and order.

There was also report that, some commercial banks in Abeokuta restricted access to their premises over the fear of being attacked by angry customers.

In most banks, customers were only allowed to use ATMs instead of going into the banking halls.

In breaking of events, there were reports of rampage attacks recorded in Ibadan, Oyo, a neighbouring State and other parts of the Country.

While, customers are still in queues waiting to withdraw money from ATMs with limited success, the anger and frustration of customers continue to grow.

Visibility report shows that the scarcity of the new Naira notes continue to bite harder in Ogun State and drastically affected businesses and other activities in the State.

EFCC arrests operations manager of bank for hoarding N29m

Despite denial of banks hoarding new Naira notes, Operations Manager of a leading Commercial bank in Abuja Central Area was on Monday arrested by operatives of the Economic and Financial Commission (EFCC) for refusing to load the ATMs of the bank, despite having N29million of the redesigned Naira notes in the branch’s vaults.

In a series of tweets via its official Twitter handle on Monday, the EFCC stated that, “Before the Operations Manager was whisked away for further questioning, the EFCC operatives ordered the loading of all the ATMs and the payment of the stipulated amount across the counter to the delight of the distraught customers who had spent hours in queues without getting the new notes.

“This discovery, which indicates a sabotage of the government’s monetary policy by some banks, was made by the EFCC in continuation of the ongoing surveillance and visit to banks across the country to access their vaults and verify whether they were deliberately refusing to dispense the redesigned Naira notes.

“More than five bank branches were covered on Monday by the EFCC operatives in Abuja. Similar exercises are ongoing in Zonal Commands across the country.

“The operation will continue until normalcy is restored to the banking system.

“Nigerians finding it difficult to access their funds at any bank and suspects foul play should contact the commission, for immediate intervention.”

CBN threatens Sterling Bank for allegedly hoarding new Naira notes

Also, the Central Bank of Nigeria (CBN) has threatened to fine Sterling Bank Plc for hoarding the new Naira notes made available to the financial institutions for public disbursement.

According to the Deputy Director of the CBN, Oluwole Owoeye, about N6 million was found hoarded in the Sterling Bank branch located in Ado-Ekiti, with the firm’s ATM empty.

This was disclosed in a trending video seen on Monday.

Owoeye said Sterling Bank had been informed of the N1 million penalty.

Recall that deposit money banks (DMBs) had been accused by the CBN and President Muhammadu Buhari of sabotaging the transition from the old Naira to new banknotes.

“I am currently at Sterling Bank, on Bank Road as part of the new Naira notes monitoring compliance with the guidelines by CBN. They have N6 million, which they collected from the bank for almost two weeks, they have not disbursed any.

“They said they are yet to configure their ATMs. I do not know why that and I have brought attention to the penalty clause of N1 million per day, because they have five ATMs here, they have no reason for keeping this money.

“The zonal service manager, Tunde Onipede promised that by 10:00am latest tomorrow (Monday), because I told him by latest 10:00am I’ll be here and I want to see the machine dispensing this money,” the CBN official said in the video.

Reacting, Ademola Adesina, Public Relations and News Management officer for Sterling Bank, admitted that the said funds were with the bank, but claimed that it was in N200 denominations, and that the ATM machines at that branch had not been configured to dispense N200 notes.

He further stated that “at the time of the visit, the subsisting instruction was that the newly designed notes were not to be dispensed over the counter.”

He said however, that, “All denominations can now be withdrawn from our ATMs and over the counter in line with regulatory pronouncement on February 2, 2023.

“We hereby confidently assure the public that the branch was not hoarding any funds.”

Court stops CBN from shifting deadline

Hours after three State governors took President Muhammadu Buhari and the CBN to court over the February 10 deadline for the expiration of old Naira notes, another court has added a twist to the issue by giving a contrary order.

Justice Eneojo Eneche of the Federal Capital Territory (FCT) High Court on Monday, ordered the CBN and President Buhari and 27 commercial banks not to change the February 10 date.

In a motion by five political parties, the court also granted an order directing the Chief Executive Officers (CEOs) of the banks, to show cause why they should not be arrested and prosecuted for the alleged financial sabotage of the country, by illegally hoarding and not disbursing the new N200, N500, and N1000 bank notes, despite supply of such notes by the apex bank.

Group says CBN Naira policy will tackle vote-buying

A Pro Nigeria Group (PNG) on Monday threw its weight behind the Central Bank of Nigeria (CBN) Naira redesign policy, saying it will curb vote-buying in the country.

Spokesperson of the Group, Isaac Balami, said this while addressing journalists at a mega solidarity walk in support of the CBN Naira redesign policy organised by PNG.

Balami said the PNG’s solidarity walk for CBN was to address issues around the money policy, a good initiative that was being sabotaged by some people.

He said, “Politicians are playing politics to blackmail CBN and the President to go back on their words.

“We are here to support the policy because we know this issue of new money policy will help to stop vote buying.

“The issue of vote buying is a major problem. It has destroyed Nigeria; so enough is enough.

“We are aware that the CBN has released money to all the banks but politicians are buying this money at a higher rate as black market, thereby frustrating citizens to go against CBN and the government.”

Balami said that the group was aware of sufferings of Nigerians and appealed to them to be patient and endure the stress for future benefit.

“We are saying no to vote buying, if you want to buy votes transfer the money and CBN will trace you.

“We have seen videos of banks hoarding money and we urge CBN to do the needful and monitor banks.

“CBN should activate all machineries and use the relevant agencies to force the bank to pay Nigerians their money.”

Responding, Mr Osita Nwanisobi, Director, CBN Corporate Communications Department, commended the group for conducting peaceful rally to its office to discuss their concerns.

Nwanisobi said that CBN was committed to delivering people centred policies.

He said, “When the present Governor assumes duty, he made it clear that he will lead a people centred CBN and that its policies would affect the lives of Nigerians positively and that is what we are doing.

“If you see what has happened with this Naira redesign, a situation where you have N2.7 trillion outside of the banking system does not augur well for the Nigerian economy and that is the major reason for this Naira redesign.

“It is to ensure the money comes back within the banking sector so that we will be able to control the money in the system and also make out monetary policy very effective.”

Nwanisobi said that CBN is fully persuaded that what it is doing is for the benefit of Nigerians and does not have a political undertone.

He said that CBN was working to ensure that the new Naira notes circulate across the country and pleaded with Nigerians to be a little patient because the process would favour them in the long run.

Naira scarcity: Three APC States drag Buhari’s Govt to court

Meanwhile, three All Progressives Congress (APC) ruling State governments have dragged the Federal Government under President Muhammadu Buhari to court over the Naira Redesign Policy that has led to a biting cash crunch in the country.

The three states – Zamfara, Kaduna, and Kogi in a motion ex-parte filed before the supreme court, seek for an interim injunction stopping the CBN from ending the timeframe within which the old N200, N500, and N1000 notes will cease to be legal tender.

The Plaintiffs in the suit are the three Attorneys-General and Commissioners of Justice of the three states, while the Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), is the sole Respondent.

The Plaintiffs said that since the announcement of the new Naira note policy, there has been an acute shortage in the supply of the new notes in Kaduna, Kogi and Zamfara States and that citizens who have dutifully deposited their old Naira notes have increasingly found it difficult and sometimes next to impossible to access new notes to go about their daily activities.

They also cited the inadequacy of the notice coupled with the haphazard manner in which the exercise is being carried out and the attendant hardship same is wrecking on Nigerians, which has been well acknowledged even by the Federal Government of Nigeria.

The Plaintiffs further maintained that the 10-day extension by the Federal Government is still insufficient to address the challenges bedeviling the policy.

New Naira Notes scarcity: Police warn mischief makers

The Lagos State Police Command has uncovered plans by some groups of persons to take advantage of the new Naira notes scarcity to unleash violence in some parts of the State.

The Command hereby warns these groups to shelve their planned violence or have the full weight of the law to contend with.

Lagos State residents and visitors are enjoined not to panic as the Police, in conjunction with other security agencies, embark on confidence-building patrols across the Lagos metropolis.

In the meantime, all law-abiding Lagosians are encouraged to go about their lawful duties without any fear of harassment or intimidation as the Command has ensured optimal deployment of human and operations resources towards guaranteeing their safety and security.

Related Topics:Banks Mob attacks Naira scarcity

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

Published

15 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

15 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

15 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.