CBN to quit as ‘Lender of Last Resort’ to banking system

Godwin Emefiele

The Central Bank of Nigeria (CBN) will soon stop performing its role as ‘lender of last resort’ to the banking system. CBN Governor, Mr. Godwin Emefiele, disclosed this in Abuja at the annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN).
In a keynote address on the theme of the conference, “Innovation in the Financial Services Sector: Driving Nigeria’s New Economy, Emefiele said that the decision of the apex bank to cease performing the role of ‘lender of last resort’ is one of the reforms aimed at improving the nation’s financial system.
He said, “Despite the progress we have made, I believe that this conference would help illuminate some lingering challenges and proffer durable and innovative solutions. For example, the growing menace of cybercrime and electronic payments fraud continue to challenge the payments industry globally and Nigeria must stay ahead of the curve in improving its fraud management strategy.
In that vein, we are collaborating with law enforcement agencies to set up a Dedicated Electronic

Nigeria can generate over N20trn from cassava – Adewumi

Pastor Segun Adewumi, the National President, Nigeria Cassava Growers Association says cassava can generate over N20 trillion for the country, annually if adequately utilised.
Adewumi stated this in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.
He said that cassava which was one of the most reliable cash crops in the world that could also be used to trigger industrial revolution and solve Nigeria’s economic problems.
Adewumi lamented that the country spent over N600 billion yearly to import ethanol and starch which were cassava derivatives that could be processed and sourced locally.
According to him, cassava has over 20 food types and three major industrial products like ethanol, starch and cassava flour which are raw materials for other products.
“Government should pay more attention to cassava, it has been neglected.

Foreign flights to Nigeria forced to refuel elsewhere

Foreign airlines flying to Nigeria have started to refuel abroad to bypass pricey, and increasingly scarce, jet fuel as the oil producer battles a hard currency shortage that has made fuel available only at a very high price.
It is the second blow for airlines operating in Africa’s recession-hit biggest economy in a year that first saw the central bank make it almost impossible to repatriate profits from ticket sales as it tried to prevent a currency collapse.
The crash in the naira since a devaluation in June has led firms who market jet fuel locally, such as Total, Sahara and ConocoPhillips, to double the price to 220 naira a litre in August, and to as much as 400 naira this month, an airline executive said.
Even at the higher costs, marketers’ lack of dollars has made fuel scarce. Some carriers have had aircraft stuck, or were forced to cancel planned journeys, after frantic last-minute calls from ground staff warned there was no fuel available.
“The economy is crying out for investment, and now it is going to be even harder for anyone to

ILO seeks global expansion of social security to tackle inequalities

There is no more excuse by any nation not to institute social protection initiatives, the International Labour Organization (ILO) has said.
The Director General of the global labour watch body, Guy Ryder, who stated this in China while addressing delegates to the ILO-China-ASEAN South South high-level conference on universal social protection, declared that in 2016, a lack of social protection is completely unacceptable.
The event – which takes place right after the G20 summit – will highlight the global importance of universal social protection and showcase results from Southern countries.
“An old-age pension system which aims to cover all people… has been established in China, as well as universal health insurance coverage,” the Chinese Vice-Minister of Human Resources and Social Security, Kong Changsheng said.

UBA wins big at BUSINESSDAY Banking Awards

Pan-African banking group, the United Bank for Africa (UBA), at the weekend won two strategic awards at the annual BUSINESSDAY Banking Awards.
The bank won the Best Bank in sub-saharan Africa and the Best Bank in support of agriculture.
The first award was in recognition of the UBA’s leading role in expanding access to banking across Africa.
According to the organisers of the awards, the bank also won the “Best Bank in Agriculture Financing,” for its consistent support for the sector in Nigeria.
It lauded the bank for devoting a substantial part of its loan book to agriculture and other related activities.
Receiving the awards on behalf of the bank, the Head of Communications, Charles Aigbe, expressed appreciation to the organisers for the recognition.

Over $5bn trapped at Tax Appeal Tribunal – lawyer

A Lagos-based lawyer, Donald Egho, has raised alarm over the huge amount of funds currently trapped at the Tax Appeal Tribunal (TAT).
Mr. Egho who spoke with journalists in Lagos, Sunday, said the amount of taxes due to the federation, which he estimated at over $5 billion, is currently lying fallow in the various divisions of the tribunal.
According to him, the funds are disputed taxes, currently subject to litigation and pending before TAT.
“The continued failure of the Federal Government to urgently reconstitute the various panels of TAT means those taxes due to the Federal Government will remain suspended for as long as there are no panels to adjudicate on the disputes; thereby robbing both the states and the Federal Government of urgently needed revenue,” said Mr. Egho, an expert on Taxation.
“As long as taxes are disputed, they remain in a state of abeyance, pending the determination, one way or the other by the tribunal,” he said.

Forex stalling equipment importation – Egbin Power

The Chief Executive Officer of Egbin Power Plc, Dallas Peavey, said on Sunday that accessing Foreign Exchange remained a major challenge to importing equipment for the company’s operations.
Peavey made the assertion in an interview with the News Agency of Nigeria in Lagos against the backdrop of the company’s inability to expand its plant for further electricity generation.
According to him, the power plant cannot continue to import equipment and effect rehabilitation because of forex challenges.
He said: “The years since the electricity companies were acquired are fraught with difficulties as we faced several hurdles in importation of electrical equipment.
“We are still not free from difficulties as access to forex remains a huge challenge.
“Most of the equipment used on the 37-year-old plant are not manufactured in Nigeria or Korea.
“We have to go to Japan because the machines are made there.
“Scarcity of dollars has grossly contributed to the poor development of the plant because sourcing for dollars remains a mirage.”

Bakers beg Buhari on high cost of bread

Bakers in Nigeria have appealed to the Federal Government to urgently intervene in the rising cost of bread production just as they ruled out going on strike.
Speaking to newsmen in Ibadan on Sunday, Chief Bayo Folarin, the National President of the Association of Master Bakers of Nigeria (AMBCN) said that the situation might soon send the commodity into extinction.
“May be in the nearest future, loaves of bread may go off the streets of Nigeria if the cost of its production continues to rise unabated,” he said.
Folarin, who doubles as the Chairman, Board of Trustees (BOT) of the association, said that government needed to intervene fast in stemming the current slide in the exchange rate of the naira.
He said that move was necessary because all the raw materials for baking, except firewood were imported.