Business
FG Supports Ex-Agitators With N1.5B Cooperative Program
On Wednesday, Major General Barry Ndiomu (retd.), the Interim Administrator of the Presidential Amnesty Program, announced that the Federal Government has allocated N1.5 billion to assist a cooperative initiative benefiting 30,000 ex-agitators in the Niger Delta region.
The goal of the program is to promote the self-sufficiency of the militants and reduce their reliance on the monthly stipends of N65,000.
Major General Ndiomu revealed that the PAP Cooperative Society Limited has been launched in Abuja, and an initial deposit of N1.5 billion has been made at Providus Bank to facilitate the implementation of the scheme.
The program aims to allocate N500 million on a monthly basis to provide ongoing support to the ex-agitators. Presently, the cooperative scheme is exclusively focused on benefiting the former agitators
He expressed optimism that as the funds increase, they would expand to impacted communities and that the scheme would also benefit several people across the region.
He said “We on our part, will continue to support the cooperative with additional finance and the plan going forward is to provide a minimum of N500 million every other month to sustain it.
“The whole essence is to discourage reliance on the monthly stipends which you will all agree with me has brought the culture of indolence and is not in our best interest. So we have decided that rather than give them fish we should teach them how to fish,” he added.
Ndiomu emphasized that the primary objective of the initiative is to establish an alternative economic development scheme that would offer ex-agitators a sustainable and more prosperous source of income to foster the socio-economic growth of both their communities and the overall region.
Ndiomu further outlined that the ex-agitators themselves would take charge of managing the cooperative scheme, while the PAP office, along with its consultants, would closely supervise its operations.
He revealed that an Advisory Board, led by Justice Francis Tabai from the Supreme Court, would oversee and monitor the program.
Ndiomu clarified that the cooperative would collaborate with PAP beneficiaries to identify business opportunities that align with their respective skills to establish and develop these ventures into profitable enterprises.
Additionally, Ndiomu highlighted that the beneficiaries would receive technical and business development support to help them establish and sustain viable businesses to empower them to meet essential needs, generate employment opportunities, and contribute to the economic growth of the Niger Delta region.
The Interim Administrator, in his address, disclosed that the PAP’s focus would be on rice production as they have entered into a Memorandum of Understanding with communities to facilitate the development of rice farms.
Furthermore, he stated that discussions are underway with the International Institute of Tropical Agriculture to explore potential collaborations in this area.
The ultimate goal is for the ex-agitators to transition into entrepreneurs, and it is anticipated that the monthly stipends of N65,000 will be gradually phased out as they become self-sufficient.
One of the ex-agitators, HRM Henry Ekes, expressed his appreciation for the scheme, acknowledging that many of them had been concerned about their future prospects since returning to the creeks and engaging in disruptive activities was not a viable option.
Ekes highlighted that several other agitators were also in favor of the scheme, and he consistently encouraged them to view it as the path towards self-reliance.
He emphasized the significance of embracing the program, noting that its success would not only be advantageous for the ex-agitators themselves but would also bring benefits to the Niger Delta region as a whole.
The National Pension Commission (PENCOM) has officially lifted its suspension on Pension Fund Administrators (PFAs) regarding investments in commercial papers, following the development of new regulatory guidelines by the Securities and Exchange Commission (SEC).
In a circular issued on Tuesday, PENCOM announced that the decision to lift the restriction was made after SEC introduced draft rules and amendments to Rule 8 (Exemptions), aimed at regulating the issuance of commercial papers by its regulated entities.
Abdulqadir Dahiru, the Head of PENCOM’s Investment Supervision Department, explained the rationale behind the move.
“The commission has noted that the Securities and Exchange Commission has developed draft rules and an amendment to Rule 8 (Exemptions) to regulate the issuance of Commercial Papers by its regulated entities,” Dahiru said in the circular.
He further highlighted that SEC’s new framework addresses PENCOM’s concerns about the involvement of non-bank Issuing and Paying Agents (IPAs) in commercial paper transactions, bringing them under appropriate regulatory oversight.
“Accordingly, the SEC is addressing the commission’s concern about the role of non-bank IPAs in commercial paper transactions by bringing them within regulatory boundaries,” Dahiru added.
With the lifting of the suspension, PENCOM seeks to encourage capital raising while maintaining market stability.
However, the commission has advised Licensed Pension Fund Administrators (LPFAs) to carry out thorough legal and financial due diligence on all commercial paper prospectuses and offer documents before making any investments.
This is in line with the guidelines set out in Section 2.9 of the Regulation on Investment of Pension Fund Assets.
The volume of dollars traded in Nigeria’s foreign exchange market surged by 61.9% in the first 11 months of 2024, reaching $43.09 billion compared to $26.6 billion during the same period in 2023.
Data from FMDQ revealed quarterly fluctuations in market activity.
Turnover in the first quarter of 2024 (Q1’24) stood at $12.64 billion but fell by 19% quarter-on-quarter (QoQ) to $10.24 billion in Q2’24. The decline persisted in the third quarter, slipping by 0.87% to $10.15 billion.
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However, the market rebounded in the final quarter of the year.
October recorded a dramatic 63% month-on-month (MoM) increase to $5.4 billion from $3.31 billion in September.
In November, turnover rose further by 13.5% to $6.13 billion.
The naira showed a mixed performance across forex market segments in November.
At the official Nigerian Foreign Exchange Market (NAFEM), the naira appreciated by N2.8 or 0.16%, closing at N1,672.69 per dollar compared to N1,675.49 in October.
In contrast, the parallel market saw the naira weaken, losing N10 or 0.5%, to trade at N1,745 per dollar in November, down from N1,730 in October.
This divergence widened the gap between the parallel market rate and the official rate to N72.31 per dollar, up from N54.61 in October.
The Central Bank of Nigeria (CBN) faces mounting pressure to address persistent volatility in the forex market.
In its Communique No. 155, the Monetary Policy Committee (MPC) expressed concerns over sustained exchange rate pressures driven by high demand.
“Members expressed concern over persisting exchange rate pressure, reflecting continued high demand in the market. Consequently, the Committee urged the Bank to explore measures to boost market liquidity,” the MPC stated.
The Central Bank of Nigeria (CBN) has warned financial institutions to address the ongoing cash scarcity at Automated Teller Machines (ATMs) or face penalties.
This warning comes as Nigerians continue to experience difficulties accessing cash both at ATMs and over-the-counter services at banks.
CBN Governor, Olayemi Cardoso, made the announcement during his address at the annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria on Friday.
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He acknowledged the widespread challenges with cash availability, particularly in the lead-up to the festive season, which has exacerbated frustrations among ordinary Nigerians.
Cardoso said, “We recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, we are conducting spot checks across deposit money banks, and we will impose penalties on underperforming institutions.”
Cardoso also revealed that, starting December 1, 2024, customers will be encouraged to report any issues they face while withdrawing cash directly to the CBN through designated phone numbers and email addresses for their respective states.
The CBN will be distributing guidelines to ensure the public is aware of these reporting channels.
The Governor also emphasized the need for full regulatory compliance by all stakeholders in the financial sector, including mobile money operators and POS agents.
The CBN is urging the promotion of digital transactions as a means of improving overall service delivery, especially during high-demand periods like the festive season and year-end.
“Financial institutions found engaging in malpractices or sabotage will face severe penalties,” Cardoso warned, signaling the CBN’s commitment to ensuring a reliable cash flow system across the nation.
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