Banking
CBN destroys N6 trillion banknotes in Buhari’s regime
By Funmilayo Olusanya
It is anticipated that the Central Bank of Nigeria, CBN, will have destroyed about N6 trillion worth of damaged and outdated banknotes when the administration of President Muhammadu Buhari ends in May 2023.
The central bank have destroyed disfigured banknotes worth N4.1 trillion between 2016 and 2020, according to statistics gleaned from the yearly reports of the CBN’s currency operations division.
Information on the quantity of damaged banknotes the central bank will discard in 2021 and 2022 as of now is not obtainable.
Read also>>>Naira redesign: Buhari counters Finance Minister, says CBN have his backing
However, as a result of its intention to revamp the N100, N200, N500, and N1,000 bills, the central bank is anticipated to destroy more than 80% of the N3.23 trillion in banknotes currently in use.
With this action, the current administration will have destroyed at least N6 trillion worth of naira notes.
Godwin Emefiele, the governor of the Central Bank of Nigeria, declared on Wednesday that the bank would issue newly designed naira notes by December 15, 2022.
During a special news conference in Abuja, Emefiele made this declaration and explained the reasoning behind the change.
The CBN governor claims that the action is intended to reduce counterfeit money in circulation as well as ransom payments to terrorists and kidnappers.
A breakdown of CBN data for the 2016–2020 timeframe revealed that in 2016, the top bank destroyed N829.94bn in notes that had been damaged. The CBN once more destroyed damaged banknotes totaling N977.23 billion in 2017. Banknotes of N814.59 billion, N814.44 billion, and N698.59 billion were destroyed in 2018, 2019, and 2020, respectively.
Further research revealed that the CBN spent N3.88 billion to destroy the N4.1 trillion in mutilated banknotes disposed of between 2016 and 2020.
This came after spending N1.43 billion on currency disposal in 2016, while the years that followed saw charges of N594.6 million, N662.2 million, N647.8 million, and N538.5 million, respectively.
The change occurred as several parties continued to criticize the CBN’s redesign of the naira notes proposal.
Experts disagree about the action, with some claiming that it will aggravate inflation.
Professor Jonathan Aremu, a former Assistant Head of Research at the CBN, criticized the decision of his former employers in a statement regarding the sum of money spent by the central bank to destroy old notes as well as the potential cost of printing the new naira notes that will go into effect on December 15, 2022.
He said, “Changing of currency notes is not an essential monetary policy tool. Our CBN is part of politicians, so people may read this intention as political geometry for hidden reasons. I am yet to be convinced of the basis for this. Buhari did this in 1985 under his military regime, to do the same again under democratic governance is not clear.
“Some people have said it is part of monetary recklessness and prodigality since it will give opportunity for huge contract and expansion of money supply amid an inflation crisis being faced by the country.”
Similar to this, Professor Akpan Ekpo, an economist and a former member of the CBN’s Monetary Policy Committee, called the central bank’s move as untimely and one that would further fritter away the desperately needed money from the country’s coffers.
He claims that the time constraints necessary to remove the currency from circulation will be extremely difficult for Nigerians living in rural areas without access to financial services.
Ekpo said, “The cost will be very high. They are trying to mop up liquidity to curb inflation. The poor people in the villages, and the farmers will suffer because they don’t have access to banks. They will face a lot of hardship to go to the bank and queue up.
“There are elections coming up. The timing is not good. I don’t think it will have much impact. Our inflation is structural.”
Ekpo also criticized Emefiele for adamantly asserting that he was not required by law to consult anyone before making the decision.
“There are a lot of things that are not legalised. Normally, in economics, monetary and fiscal policy must coordinate for the good of the country. So, even if you don’t need to talk to anybody, you should let the Minister of Finance know what you are doing,” He added.
Banking
Millions of customers still stranded worldwide 24 hours after GT Bank online operations suffered attacks
By Yemie ADEOYE
GT Bank, one of Nigeria’s leading banks, with operations across Africa and the United kingdom, and with an asset base of about US$3.11 trillion is under a cyber attack which has left millions of its customers across the world stranded in the last 24 hours.
The bank which was renowned for its seamless online operations at inception has suffered dwindling online efficiency in recent years and this current attack didn’t come as a surprise to many of its numerous customers. However, it is becoming worrisome that over 24 hours after its online operations went down, the bank has not been able to arrest the situation and restore its online services.
Several customers of the bank took to their X (formerly known as twitter) handles to express their frustrations at the bank, as several of the customers in the diaspora are unable to access their accounts and carry on with their transactions. A customer , Jeff55 who lamented on his X handle about the development, stated that it is a thing of shock that a bank of this size couldn’t afford to have the necessary tools and experts to ensure a full protection of its online operations in this age and time.
Another customer Dimma stated that while Cybersecurity training may seem tedious, the recent #GTBank hack is a stark reminder that everyone is just a click away from a devastating attack.
Several media organisations had reported that hackers have stolen GT Bank website, and intercepted customers Data in massive phishing operation.
At the time of filing this report, Biztellers.com.ng checks on the banks website shows that it is still down and unaccessible, and neither GT Bank media and communications unit nor any of its agencies or surrogates have commented officially on the development.
Banking
Tinubu commends increased crude production to 1.61 mbpd
Says output surge buoyed by reforms he announced in May 2024 to address gaps in PIA
President Bola Ahmed Tinubu on Sunday declared a resurgence in the oil & gas industry, commending the increased crude production to 1.6 million barrels per day.
The president, who said this in a national broadcast, maintained that the resurgence was buoyed by the reforms he announced in May 2024 to address the gaps in the Petroleum Industry Act (PIA).
Nigeria’s crude oil output got a boost to 1.61 million barrels per day in July 2024 through the president’s directive and the industry leadership provided by the Nigerian National Petroleum Company Limited (NNPCL).
Acknowledging what he called a resurgence of the once-declining oil and gas industry in his Sunday-morning broadcast to the nation, President Tinubu said that oil investors are coming back to Nigeria.
He said; “Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then.
Read Also : BREAKING: Sell Crude To Dangote Refinery In Naira – Tinubu To NNPC Ltd
“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy.
We were also using our hard-earned foreign exchange to pay for and subsidise its use. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down.
This will save over two trillion Naira a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education.
“To this end, we will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of the imported PMS and AGO.
“We have started the distribution of conversion kits and the setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.”
Banking
FBN Holdings On Course For AGM
Plans are in top gear for the 11th Annual General Meeting (AGM) of the FBN Holdings Plc.
The management made this disclosure in a notice it filed with the Nigerian Exchange Limited (NGX) on Thursday, where it averred that it has not been served with any court order against the proposed AGM.
According to notice, which was signed by the acting Company Secretary, Adewale Arogundade, FBN Holding said, “The attention of FBN Holdings Plc (the Company) has been drawn to recent media reports purporting that the Company has received a Court Order stopping it from holding the Annual General Meeting (AGM) scheduled for August 15, 2023.
“We confirm that this assertion is a false narrative as the Company has, as at the date hereof, not been served with any court order to stop the forthcoming AGM.
“Suffice to mention that the AGM is a statutory meeting of Shareholders that must be held in accordance with the law, further to which the Company will notify the regulators and the public as appropriate if there is any lawful order to restrain the Company from conducting same.
“We hereby assure our esteemed Shareholders that the AGM shall hold on August 15, 2023, as planned and we look forward to their attendance and active participation at the meeting.”
However, court orders published in national dailies showed that the Federal High Court in Lagos had issued an order against the financial institution, barring it from holding its 11th AGM.
The order was entered pursuant to a petition by Olusegun Onagoruwa, in suit No: FHC/L/CP/1271/2022. It was addressed to the bank and some other bank officials.
It read, “Take notice that unless you obey the directives in the judicial order contained in the order made on July 15, 2022, by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for August 15, 2023, from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on June 20, 2022, or in any other manner overreaching, disobeying or undermining the said order of a court, you will be guilty of contempt of court and you will be liable to be committed to prison and to there imprisoned.”
Biztellers brought you a report that a segment of shareholders had staged a protest at the headquarters of the bank on Monday, calling for the AGM to be held, as well as soliciting regulatory interventions.
It is expected that at the AGM, FHN Holdings is poised to breathe life into plans to seek shareholders’ approval to raise N150bn fresh capital via a rights issue and elect new directors including billionaire, Femi Otedola and Samson Ariyibi among other resolutions.