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CBN exempts microfinance, primary mortgage banks from cash withdrawal limits

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The Central Bank of Nigeria (CBN) has exempted microfinance banks (MFBs) and primary mortgage banks (PMBs) from paying processing fees for withdrawals above the cash withdrawal limits.

This is contained in a circular issued on Monday and signed by Musa Jimoh, director of payments system management department.

“The Central Bank of Nigeria hereby directs the exemption of microfinance banks and primary mortgage banks that provide banking services to the economically active poor from paying the processing fees for withdrawals above the cash withdrawal limits for direct cash withdrawals from their correspondent banks,” the circular reads.

“This is to enable them continue to play their expected roles in the economy and provide specialised retail banking services to their customers.

“Please, note that the microfinance and primary mortgage banks are required to fully comply with the cash withdrawal limits in serving their customers as per the circular with reference number BSD/DIR/PUB/LAB/015/073 dated December 21, 2022.

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“Please be guided accordingly.”

In December 2022, the CBN directed deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities per week do not exceed N100,000 and N500, 000, respectively.
However, due to mixed reactions from Nigerians, the apex bank increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million, respectively.

The apex bank said in compelling circumstances where cash withdrawal above the specified limit is required for legitimate purposes, a processing fee of 3 percent and 5 percent will be charged for individual and corporate organisations, respectively.

According to the CBN, the aim is to boost the cashless policy and reduce the amount of cash outside the banking system.

The cash withdrawal policy commenced on January 9, 2023.

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UPDATED: Dethroned Kano Emir moves into Nassarawa palace

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Aminu Bayero, the deposed Emir of Kano, has moved into a palace in Nassarawa LGA after his return to the city in the early hours of Saturday.

 

Abba Yusuf, the Kano governor, ordered Bayero’s arrest after the monarch arrived in Kano to a hero’s welcome from a horde of his supporters.

 

A retinue of soldiers who have been providing protection for Bayero before he was dethroned, rode with him from the airport to the palace.

 

Bayero was replaced as Emir by Muhammadu Sanusi on Friday.

 

Sanusi was deposed in 2020 after falling out with Abdullahi Ganduje, then governor of the state.

 

The Kano house of assembly had repealed the 2019 law which was used to oust Sanusi and balkanise the emirate into five jurisdictions.

 

The new emirate law stipulated the sack of all the Emirs in the jurisdictions and a restoration of the old order — one Emir overseeing all of Kano.

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Yusuf had given the sacked Emirs 48 hours to vacate their palaces.

 

The Emirs of Bichi, Rano, Karaye and Gaya have complied with the directive.

 

 

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JUST IN: Dethroned Kano Emir Aminu Bayero moves into Nassarawa palace

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Aminu Bayero, the deposed Emir of Kano, has moved into a palace in Nassarawa LG after his return to the city in the early hours of Saturday.

 

Abba Yusuf, the Kano governor, ordered Bayero’s arrest after the monarch arrived in Kano to a hero’s welcome from a horde of supporters.

 

A retinue of soldiers who have been providing protection for Bayero before he was dethroned, rode with him from the airport to the palace.

 

Bayero was replaced as Emir by Muhammadu Sanusi on Friday.

 

Sanusi was deposed in 2020 after falling out with Abdullahi Ganduje, then governor of the state.

Details later…

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Nothing less: Labour settles for N100,000 minimum wage as NEC meets Monday

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Organised Labour has said it will not accept anything less than N100,000 as minimum wage as the negotiations between its representatives and the Federal Government heighten, according to reports.

Several impeccable sources from both the Trade Union Congress and Nigeria Labour Congress stressed that the Federal Government and the organised private sector should not expect labour to accept anything less than a six-digit offer.

 

The unions said the government was not serious about the negotiations, adding that the shift from N48,000 to N57,000 was too meagre to be considered as ‘shifting grounds’.

 

They noted that the promise made by President Bola Tinubu when he became President and on Workers’ Day was that the Federal Government would pay a living wage, adding that N57,000 did not fall into that category.

 

The sources also noted that they were going to have a national executive council meeting on Monday in preparation for the meeting with the Tripartite Committee on Minimum Wage on Wednesday.

 

The meeting on the ongoing negotiations on the new minimum wage was adjourned till Wednesday after Organised Labour rejected the new N54,000 minimum wage proposal by the Federal Government.

 

It would be recalled that the Federal Government upped its offer from its earlier proposed N48,000 to
N54,000.

Tuesday’s meeting came as a result of the walkout staged by members of Organised Labour following the proposal of N48,000 as minimum wage by the Federal Government during last week’s meeting.

 

During that meeting, the OPS had also proposed N54,000 while labour insisted on its N615,000 living wage demand, which it later reduced to N497,000.

 

Sources who attended the follow-up meeting on Tuesday disclosed that the Federal Government upped its offer from N48,000 to N54,000.

 

“Well, during the meeting, the government increased its offer from N48,000 to N54,000. However, labour rejected that offer, and the meeting has been adjourned till Wednesday,” a source, who asked not to be named, said.

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Asked whether the government’s side was showing any sign of seriousness, the labour leader said, “No seriousness at all. Even state governors did not show up. Those who represented them, like Bauchi and Niger states, did not have the mandate to speak on their behalf.

 

“As regards the private sector, we did not get to them before the meeting was adjourned but we hope they also increase their initial offer.”

 

Organised Labour on Monday reiterated its May 31, 2024 deadline for the implementation of the new minimum wage.

 

The National President of the Nigeria Labour Congress, Joe Ajaero, had insisted on N615,000 minimum wage, arguing that the amount was arrived at after an analysis of the current economic situation and the needs of an average Nigerian family of six.

 

He blamed the government and the OPS for the breakdown in negotiation, saying, “Despite earnest efforts to reach an equitable agreement, the less than reasonable action of the Government and the Organised Private Sector has led to a breakdown in negotiations.”

 

In a statement released at the end of the jointly held NEC meeting by the NLC and TUC which was signed by Ajaero, and the TUC President, Festus Osifo, the unions said they acknowledged the ongoing negotiations between the NLC/TUC, the OPS and the Federal Government regarding the new national minimum wage.

 

Speaking on the breakdown in negotiation, the Financial Secretary of the NLC, Hakeem Ambali, said the percentage of the ground shifting by Organised Labour had been substantial, moving from N615,000 to N497,000.

 

“When you look at the percentage of ground shifting by Organised Labour, you can see that it is very substantial. The FG’s shifting is still very meagre. We are looking for the FG to reason and fulfil its promise of paying a living wage to Nigerian workers. That is their position.

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“The meeting is adjourned till Tuesday next week. Our position is N497,000. We are watching the FG and other partners in the collective bargain to shift ground. It is now their turn to shift ground substantially and not the piecemeal figure that is being given. That is not what labour is expecting. Any approval that is not up to six digits is nothing to consider by labour,” he said.

 

Another senior labour leader who chose not to be named said if the Federal Government and the OPS propose an offer of N100,000, Organised Labour might consider it.

 

The source said, “They haven’t even brought the N100,000 that the experts they consulted have recommended. Anything less than N100,000 is an insult to us as workers.”

 

Another national leader of the TUC who chose to be anonymous because he was not authorised to speak on the matter said it was disappointing for the OPS to take sides with the FG.

 

He said, “The Organised Private Sector representatives that have followed the government to offer workers N57,000 as minimum wage are doing themselves more harm than good. The reason is that taxation is killing the OPS. You cannot stimulate the economy with heavy taxation. For instance, if the Organised Labour decid

es to go on strike today, the government would not suffer as much losses as the OPS. Theirs would be colossal.

“Government has a way of recouping their loss but the OPS would run away from the economy and close shop. It is expected that the OPS and FG see beyond the partnership. A sensible OPS would work with Organised Labour. The reason is that even those working in the OPS are labourers. No amount of investment you put in, labour plays a major role among the factors of production.”

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Speaking further, he said, “They need to also know that whatever they produce today is going to be consumed by other workers. The government is making use of electricity and is the one not paying. But, a worker buys and pays. That demoralises the economy. What we are saying is nothing but the reality.”

 

The labour leader further added that anything short of a six-figure minimum wage would be rejected by Organised Labour.

 

The source added, “Anything short of six figures in the national minimum wage negotiation cannot guarantee industrial peace and harmony. The implication of that is that, when you put the amount of manpower loss, vis-à-vis the financial implication, the government would lose heavily. We don’t have guns but we have the right to withdraw our services.”

 

The source further stressed Organised Labour would not fail to go on strike if the government rescinded its promise.

 

He said, “Even the International Labour Organisation voted to strike as a fundamental right. It therefore means that even in a court of law; strike is our right. That is why we have sent that notice for them to know. We have given them ample opportunity to decide on time.

 

“We are ready to shift ground but the government must be ready to negotiate a minimum wage with sincerity. This is because the ability to pay is not the problem but the willingness to pay. The government must learn to cut the cost of governance.”

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