World Bank says CBN FX policies discourage foreign investment, fuel inflation 

The World Bank has stated that  the Central Bank of Nigeria’s exchange rate management  policies continue to discourage investment and fuel inflation.

This was disclosed by the World Bank  in the November 2021 edition of its Nigeria Development Update tagged “Time for Business Unusual”.

The World Bank said the whole of Nigeria’s debt burden remains manageable for the time being, maintaining sustainable debt dynamics will require curbing the use of CBN financing for the deficit and addressing fiscal pressures to break the cycle of low growth and rising public debt.

What the World Bank is saying  The primary macroeconomic challenges disturbing growth, according to the World Bank, are issues around the predictability and credibility of exchange-rate management, as well as an insufficient supply of foreign exchange (FX).

The report stated, “The government’s exchange rate management policies continue to discourage investment and fuel inflation. Exchange rate stability is a key CBN policy objective, and to preserve its external reserves the CBN continues to manage FX demand and limit the supply of FX to the market.”  

The World Bank stated that the Nigerian central bank’s exchange rate cannot handle external shocks to the economy, as exchange-rate management emerges as one of the key drivers of inflation.

“Pressure on the naira (₦) remains intense,  while the CBN has raised the nominal official exchange rate three times since the start of the pandemic (by 15% in March 2020, 5 per cent in August 2020, and 7% in May 2021), FX management remains too rigid to respond to external shocks. Meanwhile, exchange-rate management has emerged as one of the key drivers of inflation,” the World Bank added .

Naira lost pace against the US dollar at the parallel market, falling to as low as N560/$1 from N545/$1 that it had maintained in almost two weeks. There is still a significant gap between the N415.07/$1, at the official Investors and Exporters (I&E) window and the parallel despite cries of devaluation.

‘Over 97% of eligible depositors fully covered by NDIC’

Over 97 per cent of eligible bank deposits are fully covered by the Nigeria Deposit Insurance Corporation (NDIC), the Managing Director of the organisation, Bello Hassan, disclosed at the weekend.

Hassan, who spoke at an editors’ forum in Lagos, said the Corporation has covered 99.4 per cent, 97.6 per cent, 97.5 per cent and 97.6 per cent of accounts of N500, 000 coverage limit in 2016, 2017, 2018 and 2019 respectively.

The coverage, he said, was enough to boost confidence in the banking sector.

“The Corporation’s deposit insurance coverage limits are not only adequate but robust enough to engender confidence in our banking system. For instance, in 2016, 2017, 2018 and 2019, the total number of accounts in the deposit money banks stood at N83 million, N99.1 million, N112 million and N128.4 million respectively,” he noted.

Hassan highlighted several ongoing reviews on NDIC’s processes and approaches to further de-risk the banking and protect the Corporation.

He said part of the review would ensure that “the probability of the risk crystallising becomes a major factor in the pricing methodology of our premium going forward.

He stated, “On timely support to insured institutions, we have identified the need to reconsider our criteria for qualification of financial institutions to provide realistic terms and conditions to facilitate prompt access to technical and/or financial support in line with Section (2)(1)(b) of the NDIC Act whilst also protecting the Corporation from possible downside risk.”

He noted the various settlements made by the Corporation, saying it has accomplished “the payment of guaranteed sums and liquidation dividends speaks volumes of its commitment to the discharge of its unique mandate. NDIC had paid a cumulative sum of ₦N8.268 billion to 443,946 insured depositors and ₦100.08 billion to uninsured depositors of deposit money banks (DMBs) in-liquidation as of September 30, 2021, while N3.413 billion was paid to 90,945 insured depositors of microfinance banks and ₦1.218 million to uninsured depositors.

“In the same vein, the cumulative insured amount paid to 1,553 depositors of closed primary mortgage banks as of September 30, 2021, stood at N110.15 million while ₦N7.965 million was paid as uninsured deposits.

“Most importantly, the payment of N1.274 billion to 991 creditors and ₦4.886 billion to 965 shareholders of banks in-liquidation as of September 30, 2021, underscored the Corporation’s success story in bank liquidation. What this implies is that the Corporation had realised enough assets to pay all the insured and uninsured depositors of the banks that present themselves for payment. Currently, 19 out of the 49 DMBs in-liquidation fall into this category.”

The Director, Insurance and Surveillance Department, Galadima Gana, said Nigerian banks were stable. He listed symptoms of a failing bank as illiquidity, increased petitions by aggrieved customers who cannot withdraw, distress borrowing at the money/interbank market and frequent requests for cash assistance from the regulatory authorities.

Others listed are patronage of the Central Bank of Nigeria (CBN)’s discount window, low earnings/huge operational losses, inability to meet the regulatory thresholds and high staff turnover.

According to Gana, the total deposits of banks in liquidation from 1994 till date is N228.42 billion. The amount cut across DMBs, microfinance and primary mortgage banks. The amount, he said, is owned by 3.94 million depositors.

The insured paid amount, according to statistics presented, was N11.79 billion while the uninsured paid deposit was N107.25 billion, bringing the cumulative amount paid by the Corporation to 119.04 billion.

91 jet owners fail NCS verification test, FG directed immediate grounding

By Favour Nnabugwu

 

A total number of 91, out of 147, identified owners and operators of private jets have failed a verification test conducted by the Nigerian Customs Service (NCS) in October.

Under a directive from the Federal Government, Comptroller-General of Customs, Col Hameed Ali, (retd.), has issued a letter to the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, and the Nigerian Airspace Management Agency to ground the said private jets immediately.

Owners of 62 jets refused to attend the mandatory verification exercise. A total of 86 private jets and aircraft operators showed up and only 57 were verified as commercial charter operators.

“29 other private jets/aircraft were found liable for payment of Customs duty,” said Comptroller Joseph Attah, Public Relations Officer of Customs. The NCS issued a 14-day ultimatum for payment of duties and submission of verification papers back in October.

Some unidentified sources in NCS disclosed that the senior Pentecostal churches pastors, the chief executive officers of several indigenous oil companies, and the chairmen of some top tier banks are among these owners.

NCS further revealed that the refusal to pay import duties by these 91 owners is running to over N30bn. Several of these owners have sent protest letters to the NCS, stating that they cannot pay import duties on the planes because they are under lease payments.

Furthermore, several aviation sources said that the Ministry of Aviation is showing strong indications that it has directed the suspension of the grounding of the flight operations.

Restoration of flights between Nigeria, UAE : Air Peace resumes Dubai flights Dec 1

By Favour Nnabugwu

 

Air Peace airline has announced the resumption of flights to Dubai through Sharjah with effect from December 1, following the restoration of flights between Nigeria and the United Arab Emirates, UAE

A statement from the airline management yesterday read : ” Air Peace is delighted to inform the flying public that it will be resuming its Dubai service via Sharjah on December 1, 2021.This is consequent upon Federal Government’s lifting of the ban on flights from and to the UAE.”

” Customers are urged to comply with all established COVID-19 protocols governing international air travel and cooperate with airport staff in this regard.”

Recall the federal government and United Arab Emirates, UAE, on Friday agreed to restore flights between both countries. Flights were suspended in March following disagreement over covid-19 protocol.

The Minister of Aviation, Senator Hadi Sirika who disclosed the latest development on Friday night in Abuja said that the ban was lifted after Emirates airlines removed its stringent conditions slammed on Nigerian travellers.

Also the United Arab Emirates, in its latest Coronavirus protocol released on Saturday dropped the Rapid Antigen Test (RDT) for COVID-19 as prerequisite for travelling to the Middle East country for Nigerians and some other countries.

A statement dated November 26, 2021, issued by the Aviation Business Management Team-Dubai Airports, indicated that ” RDT would no longer be required for all flights effective from Saturday November 27, 2021 at 00.0 hours, for passengers travelling to Dubai from the following countries: the Federal Republic of Nigeria, the Republic of Uganda, the Socialist Republic of Vietnam and the Republic of Zambia.”

SBG to reward excellence in Insurance study

By Favour Nnabugwu

 

As part of efforts to strengthen the quality of skilled personnel in the insurance industry in the country, SBG Insurance Brokers Limited is to endow an academic prize for the best graduating student in insurance at the University of Lagos (UNILAG).

At a press briefing in Lagos, the Managing Director of SBG, Mr. Sammy Dalmeida, listed the endowment, aimed at spurring insurance students to attain academic excellence, as part of activities to mark the 20th anniversary of the company.

“The N2.5million 10-year tenured endowment will result in the best graduating insurance student receiving N250, 000 each year for the next ten years,” Dalmeida expained.

According to him, the Vice-Chancellor of UNILAG, Prof. Toyin Ogundipe and top players in the insurance sector, including Managing Directors, Mutual Benefits Assurance Plc, Mr. Femi Asenuga; Custodian & Allied Insurance Limited, Mr. Edeki Isujeh; Sovereign Trust Insurance Plc, Mr. Soyinka Olaotan and the Chief Client Officer, Mascot Insurance Brokers Limited, Mr. Toye Odunsi, will attend the event slated for Wednesday next week.

FG, UAE agree to restore flights between both countries

By Favour Nnabugwu

 

The federal government and United Arab Emirates, UAE, have agreed to restore flights between both countries. Flights were suspended in March following disagreement over covid-19 protocol.

The Minister of Aviation, Senator Hadi Sirika who disclosed the latest development  on Friday night in Abuja said that the ban was lifted after Emirates airlines removed its stringent conditions slammed on Nigerian travellers.

Also the United Arab Emirates, in its latest Coronavirus protocol released yesterday, dropped the Rapid Antigen Test (RDT) for COVID-19 as prerequisite for travelling to the Middle East country for Nigerians and some other countries.

A statement dated November 26, 2021, issued by the Aviation Business Management Team-Dubai Airports, indicated that ” RDT would no longer be required for all flights effective from Saturday November 27, 2021 at 00.0 hours, for passengers travelling to Dubai from the following countries: the Federal Republic of Nigeria, the Republic of Uganda, the Socialist Republic of Vietnam and the Republic of Zambia.”

According to the statement inbound passengers, who are eligible to travel to Dubai…should comply with the following conditions: “The passenger(s) shall present a valid negative COVID-19 test certificate that is issued within the valid time frame, namely, (72) hours from the time of collecting the sample and from the approved health service that uses QR code system.

“Passenger(s) shall undergo a PCR (Reverse Transcription Polymerase Chain Reaction) upon arrival at Dubai Airports.

“No approval is required from the Federal Authority for Identity and Citizenship (ICA) or from General Directorate of Residency and Foreigners Affairs (GDRFA) for the passengers from the aforesaid countries, to enter Dubai. No rapid PCR test report is required.

“The airlines shall ensure and/or verify the compliance of the above requirement(s) prior to passenger(s) boarding the aircraft and shall not accept any passenger(s) who does not fulfill the aforesaid condition(s) and/or requirements,” the statement said.

It  further stated that ” air carriers that fail and or neglect to comply with the measures set out in this decision would be subjected to the fines and measures stipulated in Clause 37 of Schedule No (7) the Executive Council Resolution No. (4) of the 2017 Approving Fees and Fines of the Dubai Civil Aviation Authority (DCAA), considering that adherence to the provision of DCAA circular No. (1) of 2021, is strictly required for airlines to continue practicing air transport activity arriving to or transiting through Dubai.”

With the new protocol, UAE has dropped the RDT test, which caused a disagreement between Nigeria and the Arab country thus forcing Emirates to stop operating to Nigeria when the federal government insisted that it must not conduct RDT on Nigerian passengers four hours before their flight as well as insisting that the 72 hours PCR test must be accepted by the airline.

Ibrahim Muhammad Kashim resign as director from Veritas Kapital Assurance

By admin

 

The Board of Veritas Kapital Assurance Plc has notified the investing public and other relevant stakeholders, of the resignation of Mal. Ibrahim Muhammad Kashim, as an Independent Non-Executive Director of the Company.

This announcement was made in a notification issued by the Company Secretary, Saratu Umar, and filed with the Nigerian Exchange Limited (NGX).

Excerpts of the notice reads: “Veritas Kapital Assurance Plc (the Company) wishes to notify its esteemed shareholders, stakeholders, and the investing public of the resignation of Mal. Ibrahim Muhammad Kashim as Independent Non-Executive Director and member of the Board of Directors of the Company.”

The firm also announced that his replacement will be soon unveiled upon receipt of approval from the primary regulator- National Insurance Commission (NAICOM).

About Ibrahim Kashim
Mal. Ibrahim Muhammad Kashim holds a Masters in Business Administration (MBA) and a B.A in Law from Abubakar Tafawa Balewa University, and University of Sokoto respectively.

He started his professional career as a Company Secretary and Legal Adviser to the Bauchi Printing and Publishing Company Limited (BPPC), and was later appointed as a Director at the Bureau of Public Enterprises.

Until his retirement, Ibrahim served as Independent Non-Executive Director of Veritas Kapital Assurance Plc.

Ibrahim has attended many local and international courses and workshops, including but not limited to: Logistics and Supply Chain Management at the prestigious Lagos Businesss School, Business Planning and Growth Strategies for World Class Leaders, among others.

Air Peace acquires two Airbus 320 Aircraft to boosts operations during yuletide

By Favour Nnabugwu

 

West and Central Africa’s largest carrier, Air Peace, has taken delivery of two Airbus 320s to boost its domestic and regional operations, especially as Yuletide approaches.

The two 162-seater aircraft, with 12 Business Class seats and 150 Economy seats each, arrived the Murtala Muhammed International Airport, Lagos, around 20:00hrs on Thursday, November 25, 2021.

Spokesperson of Air Peace, Stanley Olisa,  who confirmed the acquisition said: “The two A320s will be deployed to boost both domestic and regional connectivity for our esteemed customers, as the Yuletide draws near”.

He added that the new A320s will help the airline in its drive to meet the growing travel demand in the Nigerian and larger West African markets while it expects to take delivery of more Embraer 195-E2 airplanes.

Olisa stated: “Air Peace is committed to reducing the air travel burden of Nigerians and these new airplanes are a testament to this commitment”.

Recently, Air Peace had assured the flying public of ample flights as it will be rolling out schedules for the festive period very soon, adding that more aircraft are coming in- both those on maintenance and a brand new Embraer 195-E2 jet.

The airline had also revealed that it will be deploying its wide-body Boeing 777 aircraft to meet the increased demand characteristic of the festive period.

Air Peace currently services 19 domestic routes, 6 regional routes and 2 international destinations, including Johannesburg, while it boasts of a varied fleet of 30 aircraft, the latest being four brand new 124-seat capacity Embraer 195-E2 jets.

Leading thoughts on ways to revamp secondary schools

By Tope Adaramola

Gone were those days when secondary education in Nigeria was a worthy experience. We had many things that engaged not only our brains but also our brawn. As young people whose greatest assets were their physical strength, the authorities developed the school curriculum to actively engage these potentials.
There was hardly any secondary school, especially the ones owned by government that were not located on an expansive landmass, giving room for effective recreation and all round activities by the students, whether day or border.

There were sporting arenas for different games through which budding talents were horned from healthy competitions. There were also geographical and botanical gardens that provided physical expression to what the students learn in class. Without having visited an airport or boarded an air plane, I already could describe different vegetation in several geographical zones in the world. I realized how great those gardens were when I had the privilege of travelling so many years after school only to physically sight some of the topographies that we were taught in class from the windows of the aero plane.

There were also voluntary societies where the students learned leadership, discipline and patriotism. It was out of sync for any student not to belong to either the Boys Scout, Man “O” War, Red Cross, Boys Brigade or Sheriff. These institutions or societies provided recreation and avenues for the young lass or lads to expend their abundant energies as well as redirect their minds to responsible conduct growing up. I must specially commend the boarding facilities that existed in schools those days.

Among other things they served as the platform for understanding mutual respect and love for those outside your personal confines or narrow territories. This writer was most privileged to attend a cosmopolitan school that had a huge mixture of tribes, from different parts of the country under the then national schools exchange programme. It was a baptism into nationalistic orientation. Being a Yoruba boy, I had to relate with my next bunk guy who perhaps was from Benue, of Idoma extraction, while the guy seating next to me in class hailed from Nnnewi, of Igbo nationality.

The nuances of the different tribes were easily learned and we were orientated into seeing ourselves as Nigerians who must do away with our various parochial beliefs. This affected my world view till today as I could hardly come to terms with anyone preaching noxious tribal or religious sentiments. Ofcourse, why would I forget the rich religious activities that were encouraged in schools. The fear of God was made paramount in the budding hearts of the young lads in school. You either belonged to the FCS (Fellowship of Christian Students) or the MSS (Muslim Students Society).

Aside from the bond of unity and tolerance, the Societies enculturated the students into life of responsibility, civility and decent conduct. No student wanted to stay out of these religious folds as they could easily be tagged “children of the devil” or what we called “Omo Esu” in Yoruba parlance.
To allow all these lessons learned from school to fester in our minds was an environment that was fairly conductive in the home front.

The parents were quite responsible and had adapted to self-contentment, living within their means, rather than indulging in rat-race for wealth as we have nowadays. It was a time when crying home that you were canned by a teacher would most assuredly earn you more punishments, with either of your parents or a guardian taking you back to school and requesting that you are thoroughly flogged before all your classmates. Assembly periods were often dreaded by students, especially the serial offenders.

The School Principal was like a god that must be venerated. They determined when to discipline and what type of discipline to give depending on the gravity of offence committed by the student. You may be asked to uproot a stubborn tree on the school compound or wash all the toilets. The gravest offence could attract expulsion or even dismissal and they were under only little strangle hold from the so called authorities as we have in some cases today. It is not a coincidence that many of those who go through those punishments are today priding themselves as today’s leaders, holding commanding positions in the society.

But years down the line, it is saddening when introspecting on how we missed the tangent so widely. How did we lose all those great values that made our schools great? Where is the discipline? Where are the “culturing pots” that cooked our own generation? Accepted some may say that was in the days of yore, or better put “old school” culture, yet we should ask whether it paid us better or not.

Yes, some felt the environment was harsh, yet we fail to realise that it was that furnace of harshness that the greatness in our generation was fashioned. Many of us, now parents swank about saying we do not want our children to go through what we went through, yet we are where we are today, helplessly seeing our children veering off from the mooring of goodly conduct.

Just as the parents have become more and more irresponsible, obsessively pursuing daily bread at the expense of their “future” so also have the teachers become frustrated partly due to the non-cooperative attitude of parents, fueled by the mollifying of their powers and authority by government authorities who unfortunately are their employers.

The centre seem not to hold anymore. Result of this is what we are seeing today. It calls for urgent attention that terrorist and cultists are being groomed in our secondary schools as we could see unfolding before our eyes, yet we seem unconcerned. Many would have read in the news about how some rampaging students of two secondary schools in Abeokuta battered a superior Police Officer, bathing him with his own blood. News also captured how a student recently ambushed a teacher and shot him dead. Several maleficence that could make one twitch are happening all over the country, courtesy of secondary students on a daily basis.

Without being a pessimist, I beg to say that all these shenanigans are just a tip of the iceberg compared to what we would soon be experiencing. I feel that now is the time for a stakeholders meeting to be convoked by state governments and relevant authorities, in order to revive our secondary schools from the precipice and salvage our collective future. Those stakeholders need not over belabor themselves.

Let them take a look at those traits which I earlier highlighted that made our schools thick and see a way of reinventing them. With that starting point, I think it would be seen that we are serious as a people and government to return sanity to our schools. Surely, this madness has to stop!

Tope Adaramola is a PR practitioner and public commentator

CBN awards N5m loans to graduates under new scheme

Favour Nnabugwu

 

 

The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has launched the Tertiary Institutions Entrepreneurship Scheme designed to tackle underemployment and unemployment in the country.

Emefiele, at the launch in Abuja yesterday, also presented loans ranging from N4.1m to N5m to graduates who applied and were selected.

“The scheme, developed in partnership with Nigerian polytechnics and universities, is designed to harness the potentials of graduate entrepreneurs by creating a paradigm shift from the pursuit of white-collar jobs to a culture of entrepreneurship for economic development and job creation,” he said.

He noted that it had become imperative that government at all levels put in place policy measures to support entrepreneurial development among youths amid the lack of adequate employment opportunities.

The governor said such measures would create an enabling business ecosystem that supports innovation and enables the youth to unleash their entrepreneurial potential, by redirecting their focus from seeking white-collar jobs to a culture of entrepreneurship development.

“The ecosystem should provide support in re-orientating, training, and providing a financing model apt to the peculiarity of the sector within which the businesses operate,” he added.