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  • 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.

     

     

     

  • MTN Expands NIN Enrolment Capabilities To Rural Areas

    MTN Expands NIN Enrolment Capabilities To Rural Areas

    MTN has said it is exponentially increasing capacity to provide National Identity Number enrolment services across its customer interaction touch points pan-Nigeria, rural locations inclusive.

     

    The telco in a statement issued on Thursday said it had deployed an onsite appointment booking system designed to limit indoor crowding, alongside standard COVID-19 safety protocols at its service centres, adding that it planned to launch an online version shortly.

     

    The company said this was to further support the Federal Government and the Ministry of Communications and Digital Economy’s efforts to drive the NIN registration.

     

    According to MTN, a reliable and sustainable national identity management system would deliver multiple benefits to the telecoms industry and the country as a whole by aiding national economic planning and enhancing security, governance and service delivery at all levels.

     

    MTN reiterated its commitment to roll out thousands of enrolment devices across all geo-political zones, noting that it had already commenced enrolment for NINs at a limited number of its service centres across Nigeria.

     

    “We seek the continued patience and understanding of our esteemed customers and the public as we continue scaling up capacity,” said the Chief Customer Relations Officer for MTN Nigeria, Ugonwa Nwoye.

     

    He gave the assurance that the telco was working with the NIMC and Ministry of Communications and Digital Economy to expand the number of enrolment centres, and ensure they provided an access point for as many Nigerians.

     

    “This involves close collaboration between other Mobile Network Operators and NIMC to ensure certification and technical integration is seamless while offering maximum possible protection from COVID-19,” Nwoye added.

     

    He said MTN was committed to collaborating with the government to ensure Nigerians had access to a location where they could enrol in the NIN system, while simultaneously registering their SIM cards, which he noted was critical to the expansion of the digital economy.

  • 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.

  • Atiku Faults CBN Shutdown of Cryptocurrency Transactions

    Atiku Faults CBN Shutdown of Cryptocurrency Transactions

    Former Vice President Atiku Abubakar has faulted the decision of the Central Bank of Nigeria, CBN, to shutdown cryptocurrency operations.

     

    The former Vice President noted that with Nigeria’s economic crisis, the country needs all the help it can get to get out of its present economic quagmire.

     

    He said this in a statement titled, ‘We Need To Open Up Our Economy, Not Close It’, which he signed and made available to newsmen in Abuja, on Saturday.

     

    Atiku said, “The number one challenge facing Nigeria is youth unemployment. In fact, it is not a challenge, it is an emergency. It affects our economy, and is exacerbating insecurity in the nation.

     

    “What Nigeria needs now, perhaps more than ever, are jobs and an opening up of our economy, especially after today’s report by the National Bureau of Statistics indicated that foreign capital inflow into Nigeria is at a four year low, having plummeted from $23.9 billion in 2019, to just $9.68 billion in 2020.

     

    “Already, the nation suffered severe economic losses from the border closure, and the effects of the COVID-19 pandemic.

  • Sanwo-Olu Set To Phase Out ‘Danfo’ Buses in Lagos

    Sanwo-Olu Set To Phase Out ‘Danfo’ Buses in Lagos

    Governor Babajide Sanwo-Olu of Lagos is planning to phase out the yellow-coloured commercial buses, otherwise known as danfo, in the state.

     

    The state Commissioner for Transportation, Dr. Frederic Oladeinde revealed this during a virtual meeting where he disclosed that the yellow buses will be replaced with blue buses.

     

    He explained that the move is in accordance with the state government’s transportation masterplan.

     

    “We are reforming the bus sector and over time, Lagos will phase out the yellow buses because the yellow buses are not conducive for a mega city like Lagos. That is why we are coming with blue buses you see around.

     

    “We are inviting the private sector to participate in the provision of public transport services. We are also deploying technology just to ensure that we can up our game in terms of efficiency.”

     

    Responding to questions raised regarding the Apapa gridlock, the commissioner said the government was committed to ending the traffic menace by committing hectares of land in Iganmu and Ogun as transit truck parks while relying on the Eto app which would be deployed on February 27.

     

    He said, “Lagos State in collaboration with the Nigerian Ports Authority invited a concessionaire and that concessionaire developed an Eto app that will be deployed February 27.

     

    “Lagos State has committed 31 hectares of land in Iganmu called the Bola Ahmed Tinubu Truck Park to complement what is at Lilypond and we are talking to the Ogun State Government to secure a land in Ogere.”

     

    Similarly, Oladeinde said, the state had come up with a parking strategy named the Lagos State Parking Strategy. He disclosed that a parking authority had been set up with the mandate to regulate parking on the roads.

  • World Bank Approves $500m To Boost Nigeria’s Electricity Sector

    World Bank Approves $500m To Boost Nigeria’s Electricity Sector

    World Bank has approved $500 million to support Nigeria to improve its electricity distribution sector.

     

    The bank, in a statement on Friday, said that the project will help boost electricity access by improving the performance of the Electricity Distribution Companies (DISCOs) through a large scale metering program desired by Nigerians for a long time.

     

    It explained that financial support would be provided to private distribution companies only on achievement of result in terms of access connections, improved financial management and network expansion.

     

    According to the bank, 85 million Nigerians do not have access to grid electricity.

     

    “This represents 43 per cent of the country’s population and makes Nigeria the country with the largest energy access deficit in the world,” the statement said.

     

    “The lack of reliable power is a significant constraint for citizens and businesses resulting on annual economic losses estimated at $26.2 billion (N10.1 trillion) which is equivalent to about 2 per cent of GDP.”

     

    The statement quoted Shubham Chaudhuri, World Bank Country Director for Nigeria, as saying that “Improving access and reliability of power is key to reduce poverty and unlocking economic growth in the aftermath of the global COVID-19 pandemic.”

     

    “The operation will help improve the financial viability of the DISCOs and increase revenues for the whole Nigerian power sector which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises,” it said.

     

    The bank said the Nigeria Distribution Sector Recovery Program (DISREP) will help improve service quality as well as the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses.

     

    It further explained that the project complements the support provided under the Power Sector Recovery Operation (PSRO) approved in June 2020.

     

    “Specifically it will ensure that distribution companies make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid.

     

    “It will also help strengthen the financial and technical management of DISCOs to improve the transparency and accountability of the distribution sector,” the statement said.

     

    The statement also quoted Nataliya Kulichenko, World Bank task team leader for the project, as saying “The program will only be eligible to those DISCOs that transparently declare their performance reports to public with actual flow of funds based on strict verification of achieved performance targets by an independent third party.

     

    “The program would also make meters available at affordable prices to all consumers in Nigeria a long pending demand of Nigerians,” World Bank said.

     

    The statement added that the programme will reduce the CO2 emissions of the Nigerian power sector by reducing technical losses, increasing energy efficiency, replacing diesel and biomass with grid-electricity and investing more in on and off-grid renewable energy.

     

    “DISREP supports the development of regulatory guidance on climate-resilient infrastructure and facilitates inclusion of climate risk in decision making,” the statement reads.

     

     

     

  • WTO Job: Okonjo-Iweala Thanks U.S., Buhari, Nigerians For Support

    WTO Job: Okonjo-Iweala Thanks U.S., Buhari, Nigerians For Support

    A former Nigerian minister, Ngozi Okonjo-Iweala, has expressed appreciation to the United States, President Muhammadu Buhari and Nigerians for the support she has enjoyed thus far in her bid to become director general of the World Trade Organisation (WTO).

     

    Mrs Okonjo-Iweala took to her Twitter handle to show gratitude shortly after she was endorsed for the top job by the U.S. government Friday night.

     

    Since last year, President Buhari had been at the vanguard of the campaign for the emergence of Mrs Okonjo-Iweala as the world trade body’s DG.

     

    “Grateful for the expression of support from the US today for DG @WTO. Congratulations to Madam Yoo of Rep. Korea for a hard fought campaign,” she tweeted.

     

    “Thank You President Muhammadu Buhari @MBuhari &all Nigerians for your unflinching support.Thank you friends. Love to my family. Glory to God.”

     

    The United States government announced its endorsement of Mrs Okonjo-Iweala in a statement by its office of trade representative on Friday.

     

    “The Biden-Harris Administration also congratulates Minister Yoo Myung-hee on her strong campaign for this position,” the statement said.

     

    “She is a trailblazer as the Republic of Korea’s first female trade minister and the first candidate from Korea to advance this far in the Director General selection process.

     

    “The United States respects her decision to withdraw her candidacy from the Director General race to help facilitate a consensus decision at the WTO.”

     

    Indications emerged earlier on Friday that Mrs Okonjo-Iweala, a former finance minister and World Bank executive, would likely clinch the coveted post after her final challenger for the position, South Korean Trade Minister and candidate, Yoo Myung-hee, announced her withdrawal.

     

    Ms Yoo made the decision after discussions with the U.S. and other major nations, a statement from Korea’s trade ministry said on Friday.

     

    She also took various issues into account “comprehensively” including the need to revitalise the multilateral organisation, reports said Friday.