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BREAKING: Nigeria at risk of CBN-induced recession over naira swap, says NGF

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The Nigeria Governors’ Forum (NGF) says the country is at risk of recession which will be the result of the naira exchange policy of the Central Bank of Nigeria (CBN).

The position of the governors was contained in a communiqué issued at the end of a meeting of the NGF, which held on Saturday.

In the communiqué signed by Aminu Tambuwal, chairperson of the NGF, the governors criticised the CBN over the handling of the naira redesign policy, adding that the resulting naira note scarcity is causing hardship for Nigerians.

“The argument by the CBN for what it describes as the astronomical increase in the currency in circulation as the basis for this policy is not supported by its own data,” the communiqué reads.

“According to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in
October 2022. The Bank appears not to have taken into consideration the increase in the size of the country’s nominal GDP over this period, the doubling of consumer prices, rising
population, and the impact of the humongous Ways & Means advances to the federal government by the Central Bank of Nigeria over this period.

READ  BREAKING: Old naira notes will remain legal tender indefinitely, says CBN

“In the circumstances, it is safe to draw either of two conclusions – the CBN data may be incomplete or in fact, Nigerians may have done exceptionally well in the transition to a cashless economy.

“In addition, considering the sizeable informal sector in the nation, the amount of banknotes created in exchange so far by the CBN implies it vastly underestimated the economy’s
actual cash needs.

“The inability to use the new notes has had far-reaching economic effects, leading to the emergence of the Naira black market, severe food inflation, variable commodities prices based on the method of exchange, and long queues as well as crowds around Automated Teller Machines (ATMs) and banking halls across the country with individuals hoping to get a fraction of their money in new notes to meet their daily livelihood.

“The country runs the risk of a CBN-induced recession.”

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Delta monarch declared wanted over murder of 17 soldiers turns himself in

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Clement Ikolo Oghenerukevwe, monarch of Ewu-Urhobo kingdom in Delta, has reported to the police, hours after the military named him as one of the wanted persons for the murder of 17 army personnel in Okuama.

Bright Edafe, Delta state police spokesperson, confirmed Oghenerukevwe’s surrender.

Edafe said the monarch turned himself in on Thursday.

“We have already handed him over to the military, they were the ones that declared him wanted,” the spokesperson said.

The Defence Headquarters had on Thursday declared Oghenerukevwe among eight persons wanted in connection to the murder of the army personnel.

Among those declared wanted are Ekpekpo Arthur, a professor of physics at the Delta State University; Akeywiru Omotegbono, Andaowei Bakrikri, Igoli Ebi, a lady; Akata David, Sinclear Oliki, and Reuben Baru.

Before turning himself in, the monarch released a statement to plead his innocence.

 

“I am very surprised that my name as the monarch of the kingdom will appear in the list of wanted persons. I have no hand in the killings, I have no hand in encouraging anybody to kill anybody, it is against my philosophy as a human being and my faith as a Catholic,” he said.

READ  Full list of CBN departments relocated to Lagos

“It is a serious crime against humanity and they need to look at the appropriate places and do thorough investigation to know all those who have committed this and bring them to book and let justice prevail.

 

“I am not a party to this and like I have said earlier, the state government is aware of the turbulence I have been going through and as I speak, an arrangement was made by the government to invite the opponents recently just before this happenings.”

After the killing of the army personnel, President Bola Tinubu and the military high command promised that the perpetrators would be brought to justice.

 

Speaking during the burial ceremony of the late personnel, Taoreed Lagbaja, chief of army staff (COAS), said it was “highly demoralising” that the soldiers were killed by those they were equipped to protect.

 

The army chief added that it took over 72 hours of search to recover the vital organs of some of the deceased soldiers.

READ  Good morning! Here Are Major News Headlines In Nigerian Newspapers Today: Banks will continue to accept old Naira notes after February 10 deadline

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CBN raises commercial banks’ capital base to N500bn

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The Central Bank of Nigeria (CBN) has announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks.

In a statement on Thursday, CBN said the increase was necessary due to prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks.

The statement was signed by Haruna Mustafa, director, financial policy and regulation department.

According to the apex bank, the upward review will enhance their resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were pegged at N200 billion and N50 billion, respectively.

 

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and n10 billion, respectively.

To meet the minimum capital requirements, CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

READ  BREAKING: Old naira notes will remain legal tender indefinitely, says CBN

CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

OTHER REQUIREMENTS FOR EXISTING BANKS

The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds.

Additional tier 1 (AT1) capital shall not be eligible for the purpose of meeting the new requirement.
All banks are required to meet the minimum capital requirement within a period of 24 months commencing from April 1, 2024 and terminating on March 31, 2026.

Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio (CAR) requirement applicable to their license authorization.

In line with extant regulations, banks that breach the CAR requirement shall required to inject fresh capital to regularise their position.

OTHER REQUIREMENTS FOR PROPOSED BANKS

The minimum capital requirement shall be paid-up capital.

The new minimum capital requirement shall be applicable to all new applications for banking licences submitted after April 1, 2024.

READ  Full list of CBN departments relocated to Lagos

The CBN shall continue to process all pending applications for banking licences for which capital deposit had been made and/or approval-in-principle (AIP) had been granted. However, the promoters of such proposed banks shall make up the difference between the capital deposited with the CBN and the new capital requirement not later than March 31

.
CBN said all banks are required to submit an implementation plan, clearly indicating the chosen option{s) for meeting the new capital requirement and various activities involved with their timelines.

 

“The plan shall be submitted to the Director, Banking Supervision Department, Central Bank of Nigeria, not later than April 30, 2024,” the apex bank said.

 

CBN said it will monitor and ensure compliance with the new requirements within the specified timeline above.

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Good morning! Here Are Some Major News Headlines In The Newspapers Today: Nationwide blackout as national grid collapses again

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1.Nationwide darkness hit Nigeria as the National Grid collapsed for the fourth time in 2024 amid the Easter Holidays. According to sources from electricity Distribution companies in Nigeria, the grid collapsed around 4:30 pm on Thursday.

 

2. Hoodlums numbering about 30 on Thursday burnt a part of the Anaocha Local Government Headquarters in Neni, Anambra State.The hoodlums, who were said to be heavily armed, also set ablaze the Neni Police Station.

 

3. The price of cement decreased between 22 per cent and 26 per cent for a 50kg bag in the Federal Capital Territory within the last five weeks. A market survey conducted on Thursday by DAILY POST in Jabi, Area 10, Kubwa, Lugbe, Utako, Lifecamp and Gwarinpa showed that the price of Dangote and BUA cement dropped to N7,800 and N11,000 per 50kg bag from 10,000 and N15,000 on February 16, 2024.

 

4. Ikolo Clement, King of Ewu kingdom and one of the suspects declared wanted by the Nigerian military, has surrendered himself to the authorities. Clement, a newly installed traditional ruler of Ewu Kingdom in Ughelli South Local Government Area, Delta State, was among the eight persons declared wanted by the Defence Headquarters.

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5. A former National Chairman of the Peoples Democratic Party, Uche Secondus and members of the Presidential Campaign Council of the party for the 2023 general elections in Rivers State have declared support for President Bola Tinubu and the state governor, Siminalayi Fubara. A former Minister of Transportation and the Director-General, PDP-PCC Rivers State, Dr Abiye Sekibo, made the declaration at a news briefing in Port Harcourt on Thursday.

 

6. The Federal Airport Authority of Nigeria, FAAN, has shut down the KFC outlet in Murtala Muhammed International Airport in Lagos over discriminatory treatment meted out to a passenger with Reduced Mobility. The Director of Public Affairs and Consumer Protection of FAAN, Mrs Obiageli Orah, disclosed this in a statement on Thursday.

 

7. Detained Binance executive, Tigran Gambaryan, has sued the National Security Adviser, NSA, Nuhu Ribadu, and the Economic and Financial Crimes Commission, EFCC, over the alleged violation of his fundamental rights. Gambaryan, in a motion dated and filed 18 March by his lawyer, Olujoke Aliyu, sought five reliefs before Justice Inyang Ekwo.

READ  Good morning! Here Are Some Major News Headlines In The Newspapers Today: CBN bars bank customers without BVN, NIN April

 

8. A Federal High Court in Borno State has ordered the military to release 313 suspected terrorists, for lack of evidence to nail the suspects after investigations. The Director, Defence Media Operations, Gen. Buba Edward, on Thursday, disclosed this during a briefing on military operations across the country in Abuja.

 

9.The Defence Headquarters has said troops neutralized 121 terrorists, apprehended 253 and rescued 244 kidnapped victims in different operations across the country in one week. The Director of Defence Media Operations, Maj-Gen. Edward Buba disclosed this while giving an update on military operations on Thursday in Abuja.

 

10. The Federal Competition and Consumer Protection Commission, FCCPC, on Thursday, said it has uncovered fraudulent methods used by syndicates to sell rice below the claimed weight at the Garki Modern Market, Abuja. The commission in a statement signed by its acting Executive Vice Chairman, Adamu Abdullahi, said the fraudulent practice was discovered after a targeted enforcement operation at the modern market.

READ  Buhari to Nigerians: Give me 7 days for ‘major decision’ on naira scarcity

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