Banking
Nigeria’s economy in danger without CBN autonomy — sanusi
ABUJA – Governor of the Central Bank of Nigeria, CBN, Mr. Lamido Sanusi, yesterday, warned that Nigeria’s economy will be greatly endangered if the independence of the apex bank was undermined.
In an interview with Bloomberg Television Africa, on the sidelines of the World Economic Forum in Davos, Switzerland, Sanusi said maintaining the independence of the bank will be a major challenge that his successor will have to contend with, saying that it is important for a strong individual to be appointed to head the bank, due to the critical role it plays in the development of the country.
He said, “Any undermining of the CBN’s independence may hurt the economy. If anyone tampers with it, the markets would punish the economy.
“The CBN is a very strong institution that needs a strong leader and I think one of the things we have achieved over the last four or five years is to show that we can have an independent Central Bank in Africa.
“It is extremely important from the fiscal side, it is extremely important from the governance side, that the governor of the Central Bank is able to speak independently of political authority and raise an alarm and concerns, and give constructive criticism and advice.”
In another interview with Reuters Global Markets Forum, Sanusi ruled out further devaluation of the currency, saying that the apex bank would continue to pursue a stable exchange rate policy as long as the foreign reserves can support.
He further expressed concern about Nigeria’s dwindling Excess Crude Account, saying that its ability to successfully protect the naira will be based on the amount in the Excess Crude Account and the Foreign Exchange Reserve.
According to him, a stable currency is absolutely critical for price stability and financial stability in general, adding that it is not in the interest of the country to devalue the naira, because it will not have impact on the country’s current account balance, given the highly inelastic nature of imports and the dominance of oil.
He said the Excess Crude Account, ECA, had now fallen to just $2.5 billion, compared with $11.5 billion a year ago, noting that until it is replenished there would be little room for a reduction in the Monetary Policy Rate, MPR, below the current 12 per cent benchmark.
He said: “We should continue to seek a stable exchange rate for as long as the reserves and monetary conditions can support this.”
Sanusi said he has no fears of tightening monetary policy further to keep inflation down and to stabilize the currency, noting that, if needed, the CBN will increase its Monetary Policy Rate from 12 per cent and the Cash Reserve Requirement on public sector funds to 100 per cent.
He added that: “I don’t think we are at the end of possible tightening cycles, but I do think that the scope for further tightening is getting narrower and narrower. We do need to rely more on other instruments.”
He said the CBN will maintain inflation within a band of six per cent to nine per cent this year, controlled majorly by monetary conditions.
He said, “Government spending has not been huge, the real challenge has been on the revenue side and on the foreign exchange side. I see no reason why from 2015, Nigeria cannot move to within the range of South Africa’s three percent to six percent, or four percent to seven percent for inflation.”
Sanusi further stated that he was unconcerned by personal relationships, saying that, “We meet at work and people should do their job. I do hope that the president will be happy if I do the job very well.”
Sanusi had over the years as CBN Governor, made a number of controversial statements, drawing the ire of the members of the National Assembly and the executive arm of government, when he commented on the pay package of the legislators and asked questions on the finances of the country, respectively.
It came to an head, when in September last year, he wrote a letter to the Presidency, alleging that about $49.8 billion of the country’s crude oil money has not been remitted by the Nigerian National Petroleum Corporation, NNPC, to the Federation Account over a 19-month period.
The NNPC denied insinuations made by the CBN Governor in the letter, saying Sanusi is ignorant of the operations of the oil and gas sector and also playing politics with the issue.
The Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala, called a joint press conference with the Minster for Petroleum Resources and the CBN to explain the controversial figure and it was established after a reconciliation meeting that it was not $49.8 billion that had not paid into the Federation Account but $10.8 billion.
However, a few days into 2014, it was reported that the Presidency, angered by Sanusi’s decision to allegedly leak contents of his letter to former President Olusegun Obasanjo, asked him to resign, a request that he turned down, saying that he can not be forced out of office until June, when his tenure is expected to elapse.
– VANGUARD
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.
Stranded GT Bank customers outside the banks premises
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.
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.
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“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.”
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.
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