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  • FG Says N30,000 Minimum Wage Binding On All Employers

    FG Says N30,000 Minimum Wage Binding On All Employers

     

    The Federal Government has said the N30,000 national minimum wage is binding on all employers of labour, including state governments and the private sector.

     

     

    President Muhammadu Buhari stated this on Saturday in Abuja during the Workers’ Day celebrations.

     

    He spoke through Minister of Labour and Employment, Senator Chris Ngige, stressing that the minimum wage law signed in 2019 was a national law that everyone must obey.

     

    Buhari said, “Private sector and state governors are bound by the laws, because we have workers as prescribed in that law. So, it is not a question of pick and choose. We moved the national minimum wage from N18, 000 per month to N30,000. It is an irreducible plus. Therefore, we expect them and the people in the private sector to comply.”

     

    He also told the workers that the FG was against any attempt to remove the national minimum wage from the exclusive list, adding that the issue of pension minimum wage was backed by the constitution, and every employer was bound by it. The FG, he said, would pay all minimum wage arrears owed pensioners from 2019 to date.

     

    “All pensioners in the federal civil service are to get their arrears paid beginning from May 1, 2021,” Buhari said.

     

    He noted that although the negative effects of the COVID-19 pandemic were monumental, the government had tried to cushion the effects of the disease without reducing incomes.

     

    This was made possible, he said, through the diversification of the economy, thus keeping the country afloat.

     

    Buhari listed some of policies being executed by his administration to create jobs and empower the populace.

     

    He said, “While awaiting the formalisation of our social protection network and people’s welfare, we have not and will not rest on our oars in combating the challenges of our time occasioned by COVID-19 pandemic.

     

    “We have in our place some social-economic policies to alleviate poverty and ours include but not limited to the expansion of the Conditional Cash Transfers for the vulnerable poor from 2.6 million households (13 million persons) to 7.6 million households (32 million) and COVID-19 Rapid Response Register for urban poor, which now has 4.8 million households (20 million).”

     

    The president said the government, through the Federal Ministry of Trade and Investment, was implementing the Entrepreneur Support Programme, Artisanal Support Fund, and Payroll Support Fund for small-scale businesses.

     

    In a message jointly signed by the President of NLC, Ayuba Wabba, and President of TUC, Quadiri Olaleye, the leadership of organised labour lamented the poor conditions Nigerian workers had been subjected to.

     

    They alleged countless violations of human, workers, workplace and trade union rights all over Nigeria in the last one year.

     

    They said the situation was compounded by the health and socio-economic effects of the COVID-19 pandemic, which led to the loss of millions of jobs and subsequently pushed about 27 million Nigerians into poverty.

     

    Wabba said this year’s May Day was dedicated to brave women and men, who paid the supreme price in the performance of their jobs, contracted the coronavirus, and suffered life-lasting complications as a result.

     

    “We must say that our country has not made the desired progress in protecting workers and the Nigerian people from the impact of COVID-19, which has brought with it daunting challenges for Decent Work, Social Inclusion cum Protection and Distress on peoples’ welfare,” he stated.

     

    Wabba added, “Despite the best efforts of government, organised labour, and private sector employers, millions of Nigerian workers have lost their jobs, their means of livelihood and have slipped into destitution, lack and misery. The weakness of our social protection system has aggravated the pain and frustration of our compatriots.”

     

    Olaleye said labour was proffering alternative policy options to government to consider in order to save the country from the current difficult situation.

     

    He said rather than help businesses to grow, agencies of government had been stifling the small-scale businesses through multiple taxation, leaving the economy and Nigerians strangulated and impoverished.

     

    The TUC president said government should see the need for expansionist policies to restore the essential role of the state in the protection of essential public goods, notably health, education, jobs, and sound management of the petroleum and power sectors.

     

    On the removal of petrol subsidy, Olaleye said organised labour was pushing for production cost and pricing method as against the existing import-parity model, which had bled Nigeria of humungous forex.

     

    He urged the government to implement a three-year suspension of increase in gas price to help stabilise the cost of electricity tariff in the country.

     

    “With the savings made, the cost of the electricity tariff could be reduced by N10.50 across the high price bands,” he said.

     

    Representative of the Senate President, and Chairman, Senate Committee on Labour, Senator Godiya Akwashiki, said the National Assembly was always willing to partner the leadership of the workers in safeguarding the wellbeing of workers and ensuring industrial stability.

     

    Secretary to the Government of the Federation, Boss Mustapha, commended Nigerian workers for standing with the FG during the challenging period of the outbreak of COVID-19.

  • Just In: Awosika Breaks Silence Over Sack As First Bank Chairman

    Just In: Awosika Breaks Silence Over Sack As First Bank Chairman

     

    The immediate past chairman of First Bank Nigeria Limited, Mrs. Ibukun Awosika has broken her silence since her sack by the Central Ban of Nigeria.

     

    Awosika insisted that the decision to sack reinstated Managing Director of the bank, Adesola Adeduntan, was taken in the best interest of the institution.

     

    According to her, she maintained consistency in her contributions to development of the bank in over five years as chairman.

     

    Awosika explained she joined the bank’s board in October 2010 after which she was appointed to chair the board of FBN Life Insurance Limited.

     

    The Central Bank of Nigeria (CBN) wielded the big stick on Awosika and Chairman of FBN Holdings, Mr. Oba Otudeko on Thursday.

     

    The CBN named Mr. Remi Babalola as replacement for Otudeko (FBN Holdings Chairman) and Tunde Hassan-Odukale as Mrs. Awosika’s replacement FBN (Chairman).

     

    Awosika, in a statement shared on Instagram, titled “My FBN Group Journey”, stated the decision to end the tenure of Adesola Adeduntan as the bank’s Managing Director was taken in the bank’s best interests.

     

    But the Central Bank of Nigeria (CBN) rejected the move by the bank’s board of directors

     

    CBN argued the tenure of Adeduntan was yet to expire.

     

    She said: “In October 2010, I was appointed to join the board of First bank of Nigeria.

     

    “A few months later, I was appointed to chair the board of its startup FBN Life Insurance Limited (a joint venture with Sanlam of South Africa). As its pioneer chairman, I had the privilege of working with a strong management team led by Val Ojumah.

     

    “Together with the rest of our team we built a company that became profitable in twenty four months and continues to be so.

     

    “In early 2013, I was moved from FBN Life Insurance Ltd to assume the chairmanship of FBN Capital working with a brilliant team led by Kayode Akinkugbe as the Managing Director.

     

    “We worked hard to build the institution, bought Kakawa Discount House which I was again asked by the Group to Chair.

     

    “We eventually merged the companies to create the FBN quest Merchant Bank Group, which I chaired until my appointment as chairman of First Bank of Nigeria on January 1st 2016.

     

    “For over five years, I have worked with a dedicated team of board and management, with the support of the Central Bank of Nigeria to rebuild and restructure the institution for its future.

     

    “This included cleaning up non-performing loans, establishing good operational governance systems and processes, building controls and an effective and robust risk management system.

     

    “I am confident we have brought First Bank of Nigeria to a place where it is more than able to deliver utmost value to its stakeholders and the nation at large.

     

    “As a board, we acted in what we clearly believed to be in the best interest of the bank and we had great plans and aspirations for where the bank could go to in its future, building on all the work that has already been done in the last five plus years.

     

    “Without a shadow of doubt, I will unequivocally state that I have always acted in honor and integrity with the utmost interest of the institution, all our stakeholders and the nation.”

  • Buhari Lauds Olusegun Ogunsanya Over Appointment As CEO Airtel Africa

    Buhari Lauds Olusegun Ogunsanya Over Appointment As CEO Airtel Africa

     

    President Muhammadu Buhari has commended Olusegun Ogunsanya over his appointment as the new Managing Director and Chief Executive Officer (CEO) of Airtel Africa.

     

    In a statement on Thursday, the telecom giant announced Ogunsanya’s elevation from MD/CEO of Airtel Nigeria to the new office with effect from October 1, 2021.

     

    Ogunsanya will take over from Raghunath Mandava, who will be retiring on September 30.

     

    Reacting to the announcement, Buhari described Ogunsanya’s appointment as commendable saying “the reward for hard work is more work”.

     

    Femi Adesina, the president’s special adviser on media and publicity, in a statement, said Buhari noted that the development shows that “the flag of Nigeria has been hoisted proudly across the African skyline once again”.

     

    Buhari said the appointment has once again proven that Nigeria has a surfeit of quality professionals, who can hold their own in any part of the continent, and even beyond.

     

    “President Buhari is sure that, with the cognate experience of the new MD/CEO for Africa, which spans consulting, banking, fast moving consumer goods, and telecommunications, he would acquit himself creditably in his new role, and repeat the strides that made him position Airtel Nigeria as the second largest telecommunications company by revenue, serving over 50 million customers,” the statement read.

     

    “He urges younger Nigerians to draw inspiration from Ogunsanya, saying with focus, dint of hard work, and resourcefulness, they would reach the peak of whatever careers they have chosen for themselves.”

     

    Ogunsanya is said to possess over 25 years business management experience in banking, consumer goods and telecoms.

     

    Before joining Airtel, he held roles at Coca-Cola in Ghana, Nigeria, and Kenya (as MD and CEO); MD of the Nigerian Bottling Company; and group head of retail banking operations at Ecobank.

  • Read FULL TEXT of CBN Governor’s Statement On The Management Crisis Rocking First Bank

    Read FULL TEXT of CBN Governor’s Statement On The Management Crisis Rocking First Bank

     

    Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has announced the reinstatement of Sola Adeduntan, as the managing director and chief executive officer of First Bank of Nigeria Limited.

     

    He also ordered the immediate removal of all directors of FBN Limited and FBN Holdings Plc.

     

    Emefiele gave this directive during a media briefing on Thursday.

     

    Here is the governor’s message in full.

     

    1.0 Good afternoon ladies and gentlemen.

     

    2.0 The media has been awash with commentaries on the purported management changes at First Bank of Nigeria Ltd (FBN) and the related regulatory inquiry by the Central Bank of Nigeria (CBN) to the Board of First Bank of Nigeria Limited. It has therefore become necessary for me to address the public to clear any misconceptions.

     

    3.0 Ordinarily the board is vested with the authority to make changes in the management team subject to CBN approval. However, the CBN considers itself a key stakeholder in management changes involving FBN due to the forbearances and close monitoring by the Bank over the last 5 years aimed at stemming the slide in the going concern status of the bank. It was therefore surprising for the CBN to learn through media reports that the board of directors of FBN, a systemically important bank under regulatory forbearance regime had effected sweeping changes in executive management without engagement and/or prior notice to the regulatory authorities. The action by the board of FBN sends a negative signal to the market on the stability of leadership on the board and management and it is in light of the foregoing that the CBN queried the board of directors on the unfortunate developments at the bank.

     

    4.0 As you may be aware, FBN is one of the systemically important banks in the Nigerian banking sector given its historical significance, balance sheet size, large customer base and high level of interconnectedness with other financial service providers, amongst others. By our last assessment, FBN has over 31m customers, with deposit base of N4.2trn, shareholders funds of N618bn and NIBSS instant payment (NIP) processing capacity of 22% of the industry. To us at the CBN, not only is it imperative to protect the minority shareholders, that have no voice to air their views, also important, is the protection of the over 31m customers of the bank who see FBN as a safe haven for their hard-earned savings.

     

    5.0 The bank maintained healthy operations up until 2016 financial year when the CBN’s target examination revealed that the bank was in grave financial condition with its capital adequacy ratio (CAR) and non-performing loans ratio (NPL) substantially breaching acceptable prudential standards.

     

    6.0 The problems at the bank were attributed to bad credit decisions, significant and non-performing insider loans and poor corporate governance practices. The shareholders of the bank and FBN Holding Plc also lacked the capacity to recapitalize the bank to minimum requirements. This conclusions arose from various entreaties by the CBN to them to recapitalize.

     

    7.0 The CBN stepped in to stabilize the bank in its quest to maintain financial stability, especially given FBN’s systemic importance as enumerated earlier. Regulatory action taken by the CBN in this regard included:

     

    1. Change of management team under the CBN’s supervision with the appointment of a new Managing Director/ Chief Executive Office in January 2016.

     

    1. Grant of the regulatory forbearances to enable the bank work out its non-performing loans through provision for write off of at least N150b from its earning for four consecutive years.

     

    iii. Grant of concession to insider borrower to restructure their non-performing credit facilities under very stringent conditions

     

    1. Renewal of the forbearances on a yearly basis between 2016 and 2020 following thorough monitoring of progress towards exiting from the forbearance measures

     

     

    8.0 The measures had yielded the expected results as the financial condition of FBN improved progressively between 2016 when the forbearance was initially granted to the current financial year. For instance, profitability, liquidity and CAR improved whilst NPL reduced significantly.

     

    9.0 Notwithstanding the significant improvement in the bank’s financial condition with positive trajectory of financial soundness indicators, the insider related facilities remained problematic.

     

    10.0 The insiders who took loans in the bank, with controlling influence on the board of directors, failed to adhere to the terms for the restructuring of their credit facilities which contributed to the poor financial state of the bank. The CBN’s recent target examination as at December 31, 2020 revealed that insider loans were materially non-compliant with restructure terms (e.g. non perfection of lien on shares/collateral arrangements) for over 3 years despite several regulatory reminders. The bank has not also divested its non-permissible holdings in non-financial entities in line with regulatory directives

     

    11.0 Following further review of the situation and in order to preserve stability of the bank, so as to protect minority shareholders and depositors, the Management of the CBN in line with its powers under BOFIA 2020 has approved and hereby directs:

     

    1. Immediate removal of the all directors of FBN Ltd and FBN Holdings Plc

     

    1. The appointment of the following persons as directors in FBN Ltd and FBN Holdings Plc Holdco

     

    1.Chairman – Remi Babalola

     

    2.Dr. Fatade Abiodun Oluwole

     

    3.Kofo Dosekun

     

    4.Remi Lasaki

     

    5.Dr Alimi Abdulrasaq

     

    6.Ahmed Modibbo

     

    7.Khalifa Imam

     

    8.Sir Peter Aliogo

     

    9.UK Eke – Managing Director Bank

     

    1. Chairman – Tunde Hassan-Odukale

     

    1. Tokunbo Martins

     

    1. Uche Nwokedi

     

    1. Adekunle Sonola

     

    1. Isioma Ogodazi

     

    1. Ebenezer Olufowose

     

    1. Ishaya Elijah B. Dodo

     

    1. Sola Adeduntan – Managing Director

     

    1. Gbenga Shobo – Deputy Managing Director

     

    1. Remi Oni – Executive Director

     

    1. Abdullahi Ibrahim – Executive Director

     

    12.0 The CBN hereby reassures the depositors, creditors and other stakeholders of the bank of its commitment to ensure the stability of the financial system. There is therefore no cause for panic amongst the banking public, given that the actions being taken are meant to strengthen the bank and position it as a banking industry giant.

  • CBN Sacks All First Bank Holdings Directors, Reinstates Sola Adeduntan As MD

    CBN Sacks All First Bank Holdings Directors, Reinstates Sola Adeduntan As MD

     

    The Central Bank of Nigeria (CBN) has reinstated Sola Adeduntan as the Managing Director And Chief Executive Officer of First Bank of Nigeria Limited.

     

    Godwin Emefiele, Governor of the CBN, announced this during a press briefing on Thursday.

     

    He also ordered the immediate removal of all directors of FBN Limited and FBN Holdings Plc.

     

    Emefiele directed the constitution of an interim board to clean up and stabilise the tier-1 lender.

     

    The apex bank appointed Remi Babalola as the interim chairman of FBN Holdings Plc, while other members appointed include, Peter Aliugo, Fatade Oluwole, Kofo Dosekun, Remi Lasaki, Alimi Abdulrasaq, Ahmed Modibo, and Khalifa Iman.

     

    The CBN, however, directed U.K. Eke to remain as the Group Chief Executive Officer of FBN Holdings Plc.

     

    Tunde Hassan-Odukale is the new chairman of First Bank Limited; other members include Tokunbo Martins, Uche Nwokedi, Adekunle Sonola, Isioma Ogodazi, Ebenezer Olufowose, Ishaya Dodo, Sola Adeduntan as managing director, Remi Oni, Gbenga Sobo and Abdullahi Ibrahim.

     

    On Wednesday, the CBN had queried the board of First Bank of Nigeria Limited over the removal of Sola Adeduntan, without due consultation with regulatory authorities.

     

    “The CBN was not made aware of any report from the board indicting the managing director of any wrong-doing or misconduct; there appears to be no apparent justification for the precipitate removal,” the letter signed by Haruna Mustafa, CBN’s director of banking supervision, read.

     

    “We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances and liquidity support to reposition the bank, which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators.

     

    “It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiry of his second tenure, which is due on December 31, 2021.”

     

    Speaking during the press briefing, Emefiele said the apex bank suspected that the board removed Adeduntan because he took some decisions which were not in line with the major shareholders of the bank “who felt hurt and felt he should be removed”.

     

    “This is a bank were depositors’ fund is almost 10 times shareholders’ fund, our interest is to protect depositors and minority shareholders who have no voice in this business. We will not sit idle and allow this to continue,” Emefiele said.

     

    “I spoke to Mr. Oba Otudeko (chairman of First Bank Holdings), he refused to grant my entreaties. I had to call two of his major shareholders to call him to ask the board not to take such decisions without the approval of the CBN. He refused to pick the calls of these shareholders — who are also owners of the bank.

     

    “I called him the second time, I heard on another phone one of the shareholders begging him not to take that decision, he insisted on taking that decision. I sent the shareholder back to the office of Mr. Oba Otudeko to appeal to him to suspend the decision, he refused to see the shareholder. I feel we have done our best and we would not allow a shareholder who cannot subject himself to regulatory control and authority to remain as the director of a bank.”

     

     

  • Ogunsanya Appointed Airtel Africa CEO

    Ogunsanya Appointed Airtel Africa CEO

     

    Airtel Africa plc, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, has announced Olusegun Ogunsanya, Managing Director and CEO Nigeria to succeed Raghunath Mandava, as Managing Director and Chief Executive Officer following Mandava’s informing the Board of his intention to retire. 

     

    Ogunsanya will join the Board of Airtel Africa plc with effect from 1 October 2021. 

     

    Ogunsanya joined Airtel Africa in 2012 as Managing Director and CEO Nigeria and has been responsible for the overall management of our operations in Nigeria, our largest market in Africa. 

     

    Segun has more than 25 years’ business management experience in banking, consumer goods and telecoms.

     

    Before joining Airtel in 2012, Segun held leadership roles at Coca-Cola in Ghana, Nigeria, and Kenya (as MD and CEO).

     

     He has also been the Managing Director of Nigerian Bottling Company Ltd (Coca-Cola Hellenic owned) and Group head of retail banking operations at Ecobank Transnational Inc, covering 28 countries in Africa. He is an electronics engineer and also a chartered accountant.

     

    Raghu Mandava will be retiring as Managing Director and Chief Executive Officer, as a Director of Airtel Africa plc and as a member of the Market Disclosure Committee on 30 September 2021.

     

    A statement by the telecom firm stated that arrangements have been made to ensure a smooth transition of responsibilities.

     

    “Following his cessation of employment at Airtel Africa, Mr. Mandava will be available to advise the Chairman, the Airtel Africa Board and the Managing Director and Chief Executive Officer for a 9-month period.”

     

    An announcement naming Segun Ogunsanya’s successor as Managing Director and CEO Nigeria is expected to be made soon.

     

    Sunil Bharti Mittal, Chairman said: “We are delighted to appoint Segun Ogunsanya as the Group’s next Chief Executive Officer.  He has displayed significant drive and energy in turning around the Nigeria business by focusing on network modernisation, distribution, and operational efficiency. It is this commitment, together with his industry experience, strategic vision, constant customer focus and proven record of delivery that will enable him to continue to deliver our strategic objectives and to lead the Group in the next stages of its development.”

     

    “On behalf of the Board I would like to thank Raghu Mandava for being instrumental in successfully leading and transforming Airtel Africa into a powerhouse telecommunications and mobile money company. Throughout that time, Raghu has worked tirelessly first to repair and then to strengthen Airtel Africa’s business and to champion our stakeholders. As we look forward to Segun assuming his new role in October 2021, we do so from a position of great strength as a result of Raghu’s highly effective stewardship. Raghu will retire from the Board with our very best wishes and sincere appreciation for everything he has achieved.”

     

    Raghu Mandava said: “I am thankful to Airtel Africa for providing me and my team the opportunity to transform the business and fulfil our responsibility to the countries in which we operate. It has been a privilege to serve in the African continent and I cherish my time here. Airtel Africa is a remarkable business with fantastic people. Having been at Bharti Airtel for 13 years and at Airtel Africa for 5 years as Chief Executive Officer, I feel now is the right time to take a sabbatical.

     

    “The last five years have been an exhilarating journey where we have been able to turnaround and transform the business into a strong high growth and profitable company. We have been able to build the business with our unique management and problem solving approach to bring in substantial performance improvement. I am very proud of what we have achieved over the past 5 years in Africa, and I look forward to seeing the Company make even greater progress over the coming years.”

     

    Segun Ogunsanya said: “Having been part of the Airtel Africa journey for the past nine years, I am looking forward to taking up the role of Chief Executive Officer. On a personal note, as an African, I feel honoured to have the opportunity to lead a Group that continues to make a difference to millions of people, bridge the digital divide and expand financial inclusion. This is an exciting opportunity to position Airtel Africa for further success in a dynamic continent full of potential. I look forward to building on the achievements of the last five years during Raghu’s leadership.”

     

    There are no additional matters requiring disclosure under Rule 9.6.13 of the UK Listing Rules.

     

  • Gbenga Shobo Succeeds Sola Adeduntan as First Bank MD

    Gbenga Shobo Succeeds Sola Adeduntan as First Bank MD

     

    Gbenga Shobo has been appointed as the new managing director and chief executive officer of First Bank of Nigeria Limited with effect from April 28.

     

    Ibukun Awosika, the bank’s chairman, announced his appointment in a statement on Wednesday.

     

    Shobo will succeed Sola Adeduntan, who will be leaving the bank in accordance with the term limit for chief executives, after leading the bank since January 2016.

     

    “We are proud to announce Gbenga Shobo as our new MD/CEO. His appointment has proven the resilience of our succession planning mechanisms and the value we place on our long-standing corporate governance practices, which underpin the institution’s enduring sustainability and 127-year legacy,” Awosika said.

     

     “The board is confident that Gbenga has the experience and understanding of the bank and the know-how to lead the bank through this next phase of growth, which is focused on positioning First Bank as the pre-

    eminent bank in our chosen markets, delivering value to our stakeholders.

     

    “I would like to thank Sola for his dedication and efforts during his helm at the Bank, and before as CFO. The board and I are grateful for his leadership of the bank over the last 5 and a half years and believe that the strong foundations created during his term will provide an excellent basis for our continued success.”

     

    Awosika said Shobo was appointed as the bank’s deputy managing director (DMD) in 2016.

     

    He also formerly served as executive director overseeing the retail banking/public sector businesses in the Lagos & West directorate and was hitherto the executive director overseeing the retail business in the South directorate.

     

    “As part of his responsibility for retail banking, he has been instrumental in developing and growing the bank’s agency banking business, which today, is the market leader in agency banking, leveraging partnerships and best-in-class technology and bringing banking services to millions of unbanked and underbanked customers in Nigeria and across various countries where we operate through our African subsidiaries,” she added.

     

    The bank’s board also appointed Abdullahi Ibrahim as deputy managing director while Ini Ebong, Segun Alebiosu, Seyi Oyefeso and Bashirat Odunewu were appointed as executive directors.

     

    The appointments are subject to all regulatory approvals.

  • Reps Ask CBN To Suspend Recapitalisation Of Microfinance Banks

    Reps Ask CBN To Suspend Recapitalisation Of Microfinance Banks

     

    The House of Representatives has asked the Central Bank of Nigeria (CBN) to suspend the planned recapitalisation of microfinance banks (MFBs) until the economy stabilises and considered safe for a new deadline.

     

    This follows a motion by Saidu Abdullahi, vice-chairman of the house committee on finance, during plenary on Wednesday.

     

    In October 2018, CBN reviewed the minimum share capital requirement of the three categories of MFBs: Unit MFBs from N20 million to N200 million; state MFBs from N100 million to N1 billion; and national MFBs from N2 billion to N5 billion.

     

    The following year, it reviewed the requirement with a view to ensuring continued operations of these banks in rural, unbanked and underbanked areas of the economy.

     

    In April 2020, the apex bank revised the deadlines for MFBs recapitalisation due to the COVID–19 pandemic impacts.

     

    The CBN said: “MFBs operating in rural, unbanked and underbanked areas (Tier 2) shall meet the N35 million capital threshold by April 2021 and N50 million by April 2022.

     

    “MFBs operating in urban and high density banked areas (Tier 1) are expected to meet the N100 million capital threshold by April 2021 and N200 million by April 2022.

     

    “State MFBs shall increase their capital to N500 million by April 2021 and N1 billion by April 2022.

     

    “National MFBs are expected to meet the minimum capital of N3.5 by April 2021 and N5 billion by April 2022”.

     

    Moving the motion, Abdullahi made reference to a survey conducted by the National Association of Microfinance Banks (NAMB) which showed that out of 874 licensed MFBs, about 612 may be negatively affected by the recapitalisation policy.

     

    According to the findings, only 30 percent of MFBs would be able to meet the April 2021 deadline while 70 percent are likely to be out of business with severe consequences for the financial services industry.

     

     “In addition to the negative economic impact of the COVID–19 pandemic, Nigeria’s economy recently exited recession, the implication of which will be a significant slowdown in economic activities as the liquidity position of the government and businesses have been impacted negatively,” Abdullahi said.

     

    “In times like this, economic thinkers advocate for injection of more liquidity into the economy to stimulate economic activities, encourage spending and prevent job losses as well as support indigenous businesses.”

     

    He said the green chamber is worried about the findings, adding that if the result actualises it will aggravate unemployment, compound the challenges of insecurity, youth restiveness, poverty, apathy and hopelessness across the country.

     

    The lawmakers, therefore, mandated the committee on banking and currency to interface with CBN to find a workable solution to the challenges associated with recapitalisation of MFBs, adding that a feedback be submitted within four weeks for further legislative action.

  • Nigeria Now Crypto Trading Platform Biggest Market, Hits $1.5 Billion with Over 1.5 Million Users

    Nigeria Now Crypto Trading Platform Biggest Market, Hits $1.5 Billion with Over 1.5 Million Users

     

    Paxful, the leading global peer-to-peer fintech, has disclosed that Nigeria is its biggest market with an impressive volume which currently stands at $1.5 billion to date.

     

    The P2P platform made this known while also announcing an impressive increase in the number of its Nigerian users to almost 1.5 million.

     

    The Chief Executive Officer and Co-founder of Paxful, Ray Youssef, said, “Our mission at Paxful is to give everyone equal access to finance no matter who they are or where they are so they can control their own money and build the future they want with financial freedom.

     

    “The financial system is failing 99 per cent of the world’s population; it is disconnected and out of date. This means there is no way out of income inequality for a lot of people in the world. With cryptocurrencies, we see an alternative: a way to rest the financial system based on equality.”

     

    He added, “We are on track for a 20 per cent+ increase in volume this year. We are seeing growth in all our markets and especially among groups or in countries where there’s a real need for cryptocurrencies: where the traditional financial system is failing people, whether that is because of extreme volatility, strict capital controls or high transaction costs.

     

    “People are looking for freedom from these constraints and find that in cryptocurrencies. So, there is a real increase in people using cryptocurrencies for their original purpose – as currencies and not just as a speculative asset.”

     

    Paxful announced that over $5bn had been traded to date on its platform globally, with over six million users.

     

    It said as of April 2021, the top four countries by volume on Paxful aside from Nigeria were China, United States, India, and Kenya.

    Founded in 2015 and completely bootstrapped since then, Paxful is a peer-to-peer platform where you can buy and sell digital currencies as the means of exchange and make payments, transactions, and send money.

     

    With close to 400 different ways to buy and sell digital currencies from gift cards to online wallets, bank transfers, Paxful connects you to almost any financial network in the world. The platform just added ETH to the cryptocurrencies available.

     

    Paxful is a peer-to-peer finance platform for people to make payments, transactions, and send money by buying and selling cryptocurrencies as a means of exchange.

     

    Founded in 2015 by Ray Youssef and Artur Schaback, Paxful’s mission is to help everyone have equal access to finance no matter who or where they are.

     

    Over 5 million people use Paxful to buy and sell Bitcoin (BTC) and Tether (USDT) with almost 400 different payment methods.

     

    Ray Youssef, co-founder, and CEO of Paxful, set up the Built with Bitcoin Foundation to help people have access to education and water. To date, the foundation has built four schools (two in Rwanda, one in Kenya, and one in Nigeria. The Built with Bitcoin Foundation is funded by Paxful and in part by donations from Paxful users.

  • CBN Injects $1.47bn Into Forex Market In One Month

    CBN Injects $1.47bn Into Forex Market In One Month

     

    The Central Bank of Nigeria injected $1.47bn into the foreign exchange segment of the market as part of its efforts to stabilise the naira in January.

     

    According to figures from the CBN’s January report on its foreign exchange market developments, this was a decrease of 47.4 per cent and 64.0 per cent from the level in the preceding month and corresponding period of 2020.

     

    Part of the report read, “Total foreign exchange sales to authorised dealers by the bank was $1.47bn in January 2021, a decrease of 47.4 per cent and 64.0 per cent from the level in the preceding month and corresponding period of 2020, respectively.

     

    “A disaggregation showed that foreign exchange sales at the I&E, SMIS, SME, and interbank fell by 79.9 per cent, 38.3 per cent, 19.8 per cent, and 37.3 per cent to $0.22bn, $0.48bn, $0.10bn, and $0.04bn respectively.

     

    “Similarly, foreign exchange cash sales to BDC operators and matured swap transactions fell by 19.3 per cent and 48.7 per cent, compared with its level in the preceding month to $0.42bn and $0.12bn respectively in the review period.”

     

    The report said in order to promote transparency and increase diaspora remittance inflows, the bank further updated and reiterated the modalities for the pay-out of diaspora remittances.

     

    In a circular dated January 22, 2021, the bank said it emphasised that only licensed IMTOs were permitted to carry on the business of facilitating remittance transfers into Nigeria.

     

    It added that all diaspora remittances must be received by beneficiaries in foreign currency cash or into their designated domiciliary accounts; and IMTOs were mandated to desist from allowing remittance pay-outs in naira.

     

    The measures were meant to promote transparency in diaspora remittance transfers and thereby improve remittances inflows.

     

    According to reports by members of the Monetary Policy Committee at the last meeting, the CBN continued to defend the naira in January and February.

     

    It noted that naira exchange rate depreciated across the various windows including the I&E and BDC.

     

    External reserves also declined from $36.6bn in December 2020 to $34.46bn in February 2021.

     

    The committee stated that it was early to know the extent to which the new policy of CBN to boost remittances would impact on pressures in the foreign exchange market.

     

    While capital imports had picked up in recent months, the MPC stated that it was still far below the level it was in January 2020.