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  • FG Planning To Replace BVN With NIN – Minister

    FG Planning To Replace BVN With NIN – Minister

    The Minister of Communications and Digital Economy, Dr Isa Pantami, has said the Federal Government plans to replace Bank Verification Numbers with the National Identity Numbers.

     

    The minister said this while briefing newsmen after a facility tour and inspection of the ongoing NIN enrolment exercise at NIMC and other designated centres in Abuja.

     

    He said he had made a presentation to the National Economic Sustainability Committee and drew the attention of the Central Bank of Nigeria’s Governor on the need to replace BVN with NIN.

     

    According to him, the BVN is a regulator’s policy, while NIN is a law.

     

    He said, “The strength of the law wherever you go is not the same with a policy of one institution.’’

     

    The minister noted that BVN was only applicable to those who had a bank accounts while NIN was for every citizen and legal resident in the country.

     

    “BVN is our secondary database, while NIN and the database is the primary one in the country that each and every institution should make reference to NIMC,” he said.

     

    Pantami boasted that Nigeria was at the forefront in Africa in regard to data protection regulations, claiming that the level of security in the entire database was 99.9 per cent.

     

    He said, “That is why we came up with the Nigeria Data Protection Regulation that we always enforce and this is applicable to the database at our disposal.

     

    “We take care of it and make sure that security is excellent and we don’t allow anybody to compromise the content because it is a trust from our citizens given to us.’’

     

    Giving reasons the government engaged private agents for the NIN enrolment, the minister said the move was in line with the global standard.

     

    He emphasised the need for NIMC to focus on regulatory work and set the standards for biometrics registration, measuring of heights, standard for data to be collected and general verification.

     

    In another development, Pantami has called on the organised private sector to enhance collaboration with government, adding that the economy of Nigeria is dependent on how it faired.

     

    Pantami said this in his address at National Directorate of Employment/Federal Government’s Special Public works programme commissioning where 11,000 unemployed youth in Gombe State were engaged with work tools.

     

    He said an enabling environment was key to harvesting the gains associated with private sector, stressing that the current dispensation had provided friendly atmosphere for businesses to thrive.

     

    The minister said, “The economy of Nigeria relies more on the private sector than the public sector.

     

    “If you look at our GDP collectively, it is approximately around $450bn which is the highest in Africa. If you compute, you will discover that the entire stage of government particularly the federal level is approximately around 8.5 per cent, while that of the private sector is more than 91.5 per cent. Government cannot do without collaborating with the private sector.

     

    “What government must do is to provide enabling environment for the private sector to thrive and this is what we have been doing every day to come up with policies for the private sector to thrive.

     

    “This is what brought about tax holiday, visa on arrival in Nigeria, online registration of companies by CAC.”

     

    While hailing the public works initiative, the minister said it would reignite social service.

  • [Fraud ALERT]: FG Debunks Individual NIN Registration Website, Warns Nigerians Against Online Enrollment

    [Fraud ALERT]: FG Debunks Individual NIN Registration Website, Warns Nigerians Against Online Enrollment

    The Federal Government through the National Identity Management Commission (NIMC) has debunked it has approved an alleged individual National Identification Number (NIN) registration website.

     

    In a statement on the official twitter handle of NIMC on Monday, the commission said the website is not associated with NIMC.

     

    While warning Nigerians not to become victims and to protect their personal information, the NIMC disclosed that the website (http://bit.ly/NIN-ONLINE-REGISTRATION) is run by fraudsters.

    “Disclaimer. The website is not associated with NIMC. It is run by fraudsters. Protect your personal information, do not become a victim,” it stated.

  • Buhari Leads Mo Ibrahim, Adesina, Okonjo-Iweala, Others to Lagos Economic Summit Ehingbeti Feb. 16

    Buhari Leads Mo Ibrahim, Adesina, Okonjo-Iweala, Others to Lagos Economic Summit Ehingbeti Feb. 16

    President Muhammadu Buhari will next week lead other eminent Nigerian, African and global leaders to the Lagos Economic Summit, Ehingbeti, scheduled to hold from Tuesday, February 16 to Thursday, February 18, 2021.

     

    The summit is living up to its repute as Africa’s most practical and result-oriented private sector-led forum for socio-economic and infrastructural development with the quality of speakers confirmed to discuss at the virtual summit.

     

    This year’s edition, with the theme: For a Greater Lagos: Setting The Tone For The Next Decade, has drawn about 150 speakers from across the world to discuss and deliberate on pragmatic optimisation of the inherent opportunities in Africa’s fifth largest economy and offer perspectives on how to manage the peculiar socio-economic landscape of Lagos State in the coming decade.

     

    Leading the array of speakers at the summit are the Founder and Chair of Mo Ibrahim Foundation, Mr. Mo Ibrahim; Works and Housing Minister Babatunde Fashola (SAN), Director General of the Budget Office of the Federation, Mr. Ben Akabueze; former Minister of Finance, Dr. Ngozi Okonjo-Iweala; President of African Development Bank (AfDB), Dr. Akinwunmi Adesina; United Nations (UN) Deputy Secretary General, Amina Mohammed and UNDP Resident Representative, Mohammed Yahaya.

     

    President Buhari; former Lagos State governor, Asiwaju Bola Ahmed Tinubu and British Higher Commissioner to Nigeria, Catriona Laing, will give goodwill messages.

     

    The Summit opening address will be delivered by the Lagos State Governor Babajide Sanwo-Olu will deliver the opening address, while his deputy, Dr. Obafemi Hamzat and House of Assembly Speaker Mudashiru Obasa will lead the session on Strengthening Governance, Institution and Legislation.

     

    Other speakers at summit include Managing Director, Nigerian Breweries, Jordi Borrut Bel; Chief Executive of Centre for Values in Leadership, Prof. Pat Utomi; Academic Director, Lagos Business School, Prof. Yinka David-West; Director General of the Nigerian Association of Chambers of Commerce, Industry, Mines And Agriculture (NACCIMA), Ambassador Ayoola Olukanni; Director General of Lagos Chamber of Commerce & Industry (LCCI), Muda Yusuf; Founder of Ebony Life TV, Mo Abudu; Founder of Terra Culture, Bolanle Austen-Peters; Director of Creative Arts (West Africa), British Africa, Miss Ojoma Ochai, among others.

  • Minister Lauds MTN For Appointing Nigerian CEO

    Minister Lauds MTN For Appointing Nigerian CEO

    The Minister of Communications and Digital Economy, Dr Isa Pantami, has commended MTN Nigeria for appointing a Nigerian to lead the telecommunications and ICT services provider.

     

    According to a statement issued on Sunday, Pantami gave the commendation during a courtesy visit by MTN’s Chairman, Ernest Ndukwe, Chief Executive Officer-designate, Karl Toriola, and Chief Corporate Services Officer, Tobechukwu Okigbo.

     

    The statement said the aim of the visit was to officially introduce the CEO-designate to the minister and to demonstrate commitment to the MTN Nigerianization Agenda – an initiative geared at increasing local participation in the telco’s top management and promoting local content.

     

    Ndukwe gave the assurance that plans were underway to give Nigerians more access to the MTN opportunity.

     

    “In spite of the current limitations, we are working with stakeholders to increase local ownership of MTN Nigeria and at the same time increase equity in Nigeria’s capital markets,” he added.

     

    Pantami also praised MTN Nigeria for its corporate social investment activities through the MTN Foundation.

  • Petrol Price May Hit N190 As Oil Nears $60

    Petrol Price May Hit N190 As Oil Nears $60

    Marketers have said with the current realities in the global crude oil markets, the price of Premium Motor Spirit (petrol) in Nigeria should be between N185 and N200 per litre, unless the government wants to subsidise the product.

     

    The upturn in global oil prices last week has again brought to the fore marketers’ concerns over the non-implementation of the full deregulation of the downstream petroleum sector as the pump prices of petrol have been left unchanged for more than two months.

     

    Top officials of two major marketers’ associations who spoke with our correspondents on Saturday said the continued increase in oil prices had brought back petrol subsidy.

     

    The PUNCH had reported on January 11 that the sustained increase in global crude oil prices had pushed up the landing cost of imported petrol closer to the current pump prices of the product in Nigeria, and appeared to have triggered a return to petrol subsidy era.

     

    Since November 13, 2020 when the pump prices of PMS were last increased in the country, the price of the international oil benchmark, Brent crude, has increased by 43 per cent, rising from $41.51 per barrel to $59.34 per barrel on Friday.

     

    Fuel marketers had in December expected another upward adjustment of PMS prices to reflect the further rise in crude oil prices, which closed at $51.22 per barrel on December 31.

     

    However, a N5 reduction in petrol price, effective December 14, was announced by the Federal Government – a development that left them reeling in shock and questioning the deregulation of petrol price.

     

    Crude oil price accounts for a large chunk of the final cost of petrol, and the country has continued to spend so much on petrol imports for many years amid low domestic refining capacity.

     

    According to the marketers, the pump price of petrol should be between N185 and N200 per litre.

     

    The product is currently sold at between N160 and N165 per litre at many filling stations in Lagos.

     

    The Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, said, “Members of my association are operating in Nigeria and care about the long-term sustainability of the industry as well as the country itself.

     

    “So, we know that depending on what exchange rate you use, the pump price should be between N185 and N200 per litre.

     

    “For as long as we continue to sell the product at what we are currently selling it, then somebody is bearing the cost of subsidy, and the country really cannot afford subsidy at this time.”

     

    He said the demand for petrol had increased significantly in the country, adding that the security of supply had been threatened.

     

    Isong said smuggling might have resumed because of the significantly different prices across the borders, which were recently opened.

     

    “So, we need to completely restructure our entire supply chain. We need to reach a place where, if deregulation takes effect, refining will resume in Nigeria. We need to find a way of making sure that Nigerians benefit from deregulation. That, I believe, is what the discussion must be.”

     

    The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

     

    Private oil marketing companies have continued to lament that their inability to access foreign exchange at the official rates has hampered efforts to resume petrol importation.

     

    The PUNCH reported on Friday that the Federal Government had announced the commencement of discussions with representatives of the labour movement on how to raise the freight rate from N7.51 per litre to N9.11 per litre.

     

    Freight is one of the elements that make up the landing cost of the petrol imported into the country.

     

    The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, told our correspondent that the implementation of the new freight rate would lead to petrol price increase.

     

    He said, “Already, we are back to subsidy, and from the information I have which is confirmed, the Federal Government is subsidising about N1.8bn per day because 70 million litres are being pumped out every day now because the borders have been opened; I don’t know where the fuel is going.

     

    “Government cannot afford subsidy, and there is no subsidy in the budget. So, the market fundamentals have to come to force now.

     

    “Based on $56 per barrel of crude oil, our pump price should be about N186 to N190. But now that oil price has even gone to $59, then pump price should not be less than N200 per litre. There is no way Nigerians can avoid petrol price increase.”

     

    Osatuyi said the increase in oil prices had already pushed up the pump prices of diesel and kerosene in the country.

     

    The Minister of State for Petroleum Resources, Timipre Sylva, had said in September last year that the Federal Government had stepped back in fixing the price of petrol, adding that market forces and crude oil price would determine the cost of the product.

     

    The Federal Government removed petrol subsidy in March 2020 after reducing the pump price of the product to N125 per litre from N145 on the back of the sharp drop in crude oil prices. The price reduction lasted till June.

     

    Nigerians saw increases in the pump prices of petrol in four months, rising from N121.50-N123.50 per litre in June to N140.80-N143.80 in July, N148-N150 in August, N158-N162 in September and N163-N170 in November.

     

    Apart from the increase in global oil prices, the devaluation of the naira last year also led to a significant rise in the cost of imported petrol.

     

    If the pump price of petrol is left unchanged amid the rise in oil prices, it means the NNPC would again bear the latest subsidy cost on behalf of the government as it did for several years before its removal last year.

     

    In July 2020, Sylva said in a statement that the Federal Government had reached a conclusion that it could no longer bear the burden of petrol subsidy.

     

    “After a thorough examination of the economics of subsidising PMS for domestic consumption, the Federal Government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year, more so when this subsidy was benefiting in large part the rich, rather than the poor and ordinary Nigerians,” he said.

     

    According to him, deregulation means that the government will no longer continue to be the main supplier of petroleum products but will encourage the private sector to take over the role of supplier of the products.

     

  • Pencom Moves To Reduce Unfunded Retirement Savings Accounts

    Pencom Moves To Reduce Unfunded Retirement Savings Accounts

    The National Pension Commission has ordered Pension Fund Administrators to ensure that all remitted contributions are credited into the Retirement Savings Accounts of the workers.

     

    This is to reduce the number of unfunded RSAs of workers under the Contributory Pension Scheme.

     

    PenCom disclosed this in its quarterly report on ‘Update on the on-site analysis of pension fund operators’.

     

    Part of the report read, “The review of the operators’ activities during the third quarter of 2020 indicated substantial compliance with the extant laws and regulations issued by the commission.

     

    “The key area of regulatory concerns were the rise in unfunded RSAs.

     

    “The PFAs were directed to ensure all remitted contributions are credited into the RSAs of the beneficiaries and also liaise with the respective employers to ensure up-to-date funding of the contributors’ RSAs.”

     

    PenCom stated that it suspended the 2020 on-site examination of pension fund operators due to the COVID-19 pandemic.

     

    However, it added, the enhanced off-site surveillance of pension operators continued through review of the monthly reports submitted by the operators.

     

    It stated that a review of the compliance reports forwarded by the pension operators during the quarter under review revealed a significant rise in the number of RSAs with un-credited pension contributions.

     

    The PFAs attributed the backlog of un-reconciled contributions to their skeletal workforce for processing the contributions, in compliance with the COVID-19 induced stay-at-home order.

     

    They were nonetheless, directed to ensure all pension contributions received during the lockdown were duly reconciled and credited to the respective RSAs of the contributors.

     

    Other notable observations from the compliance report were that all outstanding payment of retirement benefits approved by the commission had been credited into the respective RSAs of the beneficiaries by the PFAs.

     

    The operators also met all the outstanding commitments due from previous routine examinations within the quarter, it stated.

     

    PenCom stated that it granted approval to five private sector organisations and one public agency to establish additional benefits schemes for their employees in line with the provisions of Section 4(4)(a) of the PRA, 2014.

     

    The commission stated that it issued a revised circular on the requirements for granting PFA and Pension Fund Custodians licenses, to reflect the provisions of the PRA 2014 and industry developments.

     

    It added that it issued a framework for virtual meetings by licensed pension operators, setting out the minimum standards and regulatory requirements for virtual meetings in the era of COVID-19 pandemic.

     

  • Naira Dips, Exchanges For 477/$ At Parallel Market

    Naira Dips, Exchanges For 477/$ At Parallel Market

    The naira on Friday exchanged for 477/$ at the parallel market.

     

    At the Investor & Exporter forex window, the naira closed at 396.17/$ after hitting a high of 401/$.

     

    The Central Bank of Nigeria recently disclosed that it injected $4.37bn into the foreign exchange market in the third quarter of 2020 as part of efforts to ensure the stability of the naira.

     

    The bank said through its periodic interventions in the forex market, it continued to boost the supply side of the market, as COVID-19 crisis weakened the private sector supply chain segment of the market.

     

    Part of the CBN economic report read, “During the third quarter of 2020, total foreign exchange sales to authorised dealers by the bank amounted to $4.37bn, a decline of 2.3 per cent from the level in the preceding quarter.

     

    “This was attributed largely to the decrease in wholesale forward intervention and interbank sales. The total foreign exchange sales represented a decrease of 56.4 per cent, compared with the corresponding quarter of 2019.”

     

    It added, “Further disaggregation showed that matured swap transactions and SMIS intervention rose by 50.8 per cent and 0.7 per cent to $1.24bn and $1.96bn, from the levels in the preceding quarter.

     

    “However, interbank sales, interventions at the I&E window and SME fell by 22.3 per cent, 18.7 per cent and 3.5 per cent to $0.15bn, $0.39bn and $0.30bn relative to their levels in the preceding quarter.”

     

    According to the report, foreign exchange cash sales to Bureau de Change operators was $0.33bn in the review period.

     

    The Association of Bureaux de Change had said that the funding of the BDCs had helped to deepen the forex market and reduced the level of forex scarcity that always formed the basis for speculative activities.

     

     

  • Crypto Ban Won’t Deter Us, Nigerian Traders Insist

    Crypto Ban Won’t Deter Us, Nigerian Traders Insist

    Despite the policy putting a ban on cryptocurrency in the country, some Nigerians on Twitter remained defiant, saying they were not deterred by the CBN policy.

     

    Responding to the ban, Abdulhameed Abu said, “The simple truth is that there is nothing @cenbank can do to enforce this ban. The very definition of a decentralised system is the absence of concentrated control. If I were you, I would be proactively looking for ways to regulate and tax such a potentially huge source of revenue.

     

    “Countries like America and the others have realised this earlier on. They have since come up with interesting ways to regulate and generate revenue from the cryptocurrency sector. Meet with key players in the sector and come up with good laws regulating it and forget about the ban.”

     

    Emmy Jesus said, “It’s simple: trade with Ghanaian or Togolese banks, open an international account and forget about Nigerian banks with the CBN policy.”

     

    @CDiepreye said, “Nothing done by the @NigeriaGov can stop me from trading on @binance and others. After all, I make money abroad and I bring it home (Nigeria economy).”

     

    @sirpeeworld, said, “No one should panic yet. Many ways will be discovered soon. If you have anyone outside Nigeria, it will be easy for you to do your bitcoin things. You can transfer to anyone outside Nigeria. They will buy from you and send you naira.”

     

     

  • CBN Anti-Cryptocurrency Policy Threatens Jobs, Experts Warn

    CBN Anti-Cryptocurrency Policy Threatens Jobs, Experts Warn

    Following the Central Bank of Nigeria directive to banks and other financial institutions on Friday ordering the closure of all accounts operating cryptocurrency exchanges, some experts in cryptocurrency trading have raised the alarm over its economic impact.

     

    The Blockchain Solutions Architect, Sterling Bank, Mr Charles OkaforMbah, in an interview noted that crypto trading is divided into formal and informal exchanges.

     

    “There are the formal exchanges, like Binance, which is the most popular; and Patricia. We have some other players, like BuyCoins and Bundle Africa. If we put (together) the figures from these traders, we could be seeing a huge amount on a weekly basis.

     

    “There are informal markets too. We call them over-the-counter traders. This is where the peer-to-peer traders are and most of these people make use of private chatrooms such as WhatsApp, and Telegram or any other favourable platform. The volumes there are not calculated yet, so if you add those volumes that people are doing in trading rooms, then the figures tend to go up as well.

     

    “With such a policy, it is killing a lot of businesses by pushing them out. If the government is trying to stop people from trading crypto by blocking the accounts of these exchanges that people are paying money to and then withdrawing their money from those accounts, it is cutting off a lot of players from participating in the crypto space.”

     

    OkaforMbah, while speaking on job creation occasioned by crypto trading, said, “My mum is going on 65 years old and she trades in crypto, so it is not just the youth that would be affected. It is also affecting the older generation.”

     

    He noted that crypto exchanges employed blockchain developers – some of the highest paid programmers saying – “As of 2020, blockchain developers are highly sought after around the world.”

     

    Blockchain is a type of diary or spreadsheet containing information about transactions, while blockchain developers enable secure digital transactions by creating systems to record and store blockchain data in a way that prevents changes or hacks.

     

    OkaforMbah explained that local exchanges also employed smart contract staff, marketers and customer service staff, and rented office spaces. He added that, though the CBN policy created a ripple effect, he was optimistic that trading would bounce back.

     

    The crypto expert said, “Most users are now getting emails from exchanges that withdrawals and deposits are no longer happening. But definitely, there will be a way out but it will take some time for people to adapt and that is where the P2P trading comes in. That is how crypto trading started.

     

    “China and India tried something like this but it didn’t work. Visa is working on something with Anchorage to enable banks to be able to trade and buy bitcoins for their customers. If developed countries are struggling with blockchain and crypto legislation, why should the government in Nigeria be frustrating the effort of citizens who are trying to make a living for themselves?”

     

    Similarly, the Founder and Managing Director, Cowry Asset Management Limited, Mr Johnson Chukwu, told Sunday PUNCH that the CBN policy would have an impact on the cryptocurrency trade in the country and render some citizens unemployed.

     

    “I have seen a couple of young Nigerians who have made reasonable income from cryptocurrency trading. Remember, Nigeria is largely a youth-populated country, and we have many educated people who may not be fully employed.

     

    “Because of that, many of them are into cryptocurrency trading and they understand it. In effect, we may be cutting off their source of income and fiscal engagement. There will be some impact on the income of cryptocurrency investors,” he said.

     

    Chukwu said despite the concerns about cryptos by the apex bank of the possibility that they could be used to fund illegal transactions like terrorism, closing the accounts of investors needed not to be.

     

    “There could have been only warnings so as not to exclude investors from the financial system completely. The CBN should find a way to harness the positive side of the new knowledge to advance society,” he said.

     

    Chukwu said now was the time for the financial regulators to evolve methods of either regulating cryptocurrencies or integrating them into the financial system, saying the technology would not go away.

     

    “Once there is an advancement in knowledge, you cannot reverse it. My position is that the regulator will ultimately need to find ways of regulating the operations of cryptocurrencies because as long as the knowledge has evolved, it won’t go away. Stiff regulation can only push it to the parallel or black market,” he said.

     

    Meanwhile, the Chief Executive Officer of Economic Associates, Mr Ayo Teriba, said the CBN could not ban cryptocurrency trading, just in the same way the CBN could not bar people from gambling.

     

    “But the CBN can restrict banks and financial institutions licensed by it from getting involved in activities like gambling.

     

    “So, the CBN is not saying people can’t trade cryptocurrencies; it is only restricting the financial institutions because it has the responsibility to manage systemic risk in the country. As a country’s risk manager, it will be risk-averse [to cryptocurrency trading],” he said.

     

     

     

  • Digital Ecosystem Will Create Value, Wealth For Nigeria –NITDA

    Digital Ecosystem Will Create Value, Wealth For Nigeria –NITDA

    The Director-General, National Information Technology Development Agency (NITDA), on Friday, Kasifu Inuwa, observed that creating a digitised ecosystem would guarantee value creation, wealth and prosperity, for a digital economy.

     

    Inuwa made the remark at the unveiling ceremony of the first Nigerian assembled Hyundai KONA Electric Vehicle, launched by the National Automotive Design and Development Council (NADDC) in Abuja.

     

    He said that creating an ecosystem was the only way to easily get value that would enable growth, wealth and prosperity, citing the introduction of electric vehicles into the country, as a welcome development that would enable the nation advance to a vibrant economy.

     

    Inuwa further said that the country needed to advance from assembling cars to building parts, adding that already NITDA was working with start-ups, young Nigerian entrepreneurs, to develop ground breaking ideas on automobiles, using Internet of Things (IoT), renewable energy, and other relevant emerging technologies.

     

    He recalled that the recent ground breaking National Digital Innovation and Entrepreneurship Centre (NDIEC), established by the agency, was in line with the National Digital Economy Policy and Strategy (NDEPS) of the Federal Government.

     

    He said that NDEPS, and other activities of government, was designed to lift 100 million Nigerians out of poverty in the next 10 years.

     

    “The NDIE Centre is intended to provide facilities that would encourage inquisitive perspectives and create opportunities for entrepreneurs to transform their skills into products.

     

    “The centre will provide the opportunity for start-ups to accelerate their innovations, through design, thinking sessions and co-innovation workshops,” he added.

     

    He commended the Director-General of NADDC, Mr Jelani Aliyu, the council’s partners, Stallion Group, for their innovation and contributions to the technological advancement of Nigeria.

     

    Inuwa, in the company of other dignitaries, took a ride in the newly unveiled vehicle.