Typo On Australia’s $50 Embarrasses Central Bank

Red-faced bank bosses in Australia admitted to an embarrassing error Thursday, revealing their state-of-the-art $50 note had a typo.

The yellow and green note, which is worth around US$35, came into circulation last October. It has multiple security features — including microprint of a speech by Australia’s first female parliamentarian, Edith Cowan.

But the technology seemingly did not include a spellchecker.

It took seven months for the public to notice “responsibility” was repeatedly misspelt in the text of Cowan’s 1921 maiden speech.

“I stand here today in the unique position of being the first woman in an Australian parliament. It is a great responsibilty,” the text reads, missing an “i”.

The script is barely legible to the naked eye and the Reserve Bank of Australia may have got away with it, were it not for one eagle-eyed radio listener.

But there are no plans to pull the notes from circulation.

“The Reserve Bank of Australia is aware of it and the spelling will be corrected at the next print run,” said a bank spokesperson.

Edith Cowan played a crucial role in winning the vote for women in Western Australia and at the age of 60 entered parliament. There she was instrumental in opening the legal and other professions to women.

AFP

My Tenure Expires In June, CBN Governor Reacts To His Rumoured Removal

 

The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has denied reports that he has been removed from office.

Mr Emefiele described the reports which made the rounds on some online platforms on Monday as concerning.

“I am confused and concerned about some stories going around. At least you can see me; I am doing my work, my tenure expires in June,” the CBN Governor said in Abuja on Tuesday, while promising that the apex bank will provide financial support for cotton producers at single-digit interest rates.

Also, the CBN boss announced foreign exchange restrictions on importers of textile materials with immediate effect as part of efforts to encourage the development of the country’s textile industry.

Mr Emefiele had been appointed as CBN governor in June 2014 by Goodluck Jonathan. Prior to his appointment, he was the Group Managing Director and Chief Executive Officer of Zenith Bank Plc.

On Monday, reports emerged that the Federal Government had asked him to proceed on leave, more than two months before the expiration of his five-year tenure.

Apart from dismissing the reports, Mr Emefiele is optimistic that the intervention programmes of Central Bank would continue with or without him.

He said, “The intervention programmes of the Central Bank of Nigeria has been on since 1978 and it has moved from one governor to another governor and I am very optimistic that even if another governor comes, no right-thinking person would abandon an initiative that is laudable and is meant to create jobs and is meant for the good of our country.”

Part of that intervention is the support for cotton farmers.

As part of efforts to encourage the development of the country’s textile industry, the CBN boss announced foreign exchange restrictions for importers of textile materials with immediate effect.

CBN Fines Four Banks N5.87bn, Asks MTN To Return $8.1bn

Nigeria's Foreign Exchange Inflow Hits $91b In 2017 – CBN

The Central Bank of Nigeria has slammed fines totalling over N5 billion on four banks “for breaching Nigeria’s forex regulations” and asked MTN Nigeria Communications Limited to refund $8.134 billion.

All four banks – Standard Chartered, Stanbic IBTC, Citibank and Diamond Bank – were fined with regards to capital repatriation by telecoms giant MTN.

The Central Bank hit Standard Chartered with a N2.4 billion fine (N2,470,604,767.13), slammed a N1.8 billion (N1,885,852,847.45) fine on Stanbic IBTC. Citibank is to pay N1.2 billion fine (N1,265,541,562.31) while Diamond Bank was handed a N0.25 billion fine (N250 million).

The CBN imposed the sanctions on the banks which are under its regulatory purview for “flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006”.

CBN’s Director of Corporate Communications, Mr Isaac Okorafor, explained in Abuja on Wednesday that the actions became necessary after allegations of remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited and subsequent investigations carried out by the regulator in March 2018.

“The CBN has therefore asked the managements of the banks and MTN Nigeria Communications Limited to immediately refund the sum of $8,134,312,397.63, illegally repatriated by the company to the coffers of the Central Bank of Nigeria,” the regulator said in a statement.

According to Mr Okorafor, the investigation took a while so that the CBN can carry out “thorough inquiry and give fair hearing to all parties involved”.

He urged banks and multinational companies in Nigeria to adhere strictly to the provisions of all extant laws and regulations of the country in their foreign exchange transactions, warning that failure to do so would lead to sanctions.

Read the full CBN statement and details of its investigation below:

CBN slams heavy Sanctions on 4 Banks

…Standard Chartered – N2.4 bn

…Stanbic IBTC  – N1.8 bn

…Citibank           – N1.2 bn

…Diamond Bank – N0.25 bn

…writes MTN to refund $8 billion

ABUJA – The Central Bank of Nigeria (CBN) says it has imposed heavy sanctions totaling N5.87 billion on four banks under its regulatory purview and asked same to refund the sum of $8,134,312,397.63 for what it described as ‘flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 of the Federal Republic of Nigeria and the Foreign Exchange Manual, 2006’.

The four banks that have come under the sledgehammerof the CBN for the violations are Standard Chartered Bank, Stanbic-IBTC, Citibank, and Diamond Bank.

Announcing the decision in Abuja on Wednesday, August 29, 2018, CBN’s Director, Corporate Communications, Isaac Okorafor, said that the actions of the Bank became necessary following allegations of remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited and subsequent investigations carried out by the apex bank in March 2018. The CBN has therefore asked the Managements of the banks and MTN Nigeria Communications Limited to immediately refund the sum of $8,134,312,397.63, illegally repatriated by the company to the coffers of the Central Bank of Nigeria.

Figures obtained from the CBN on Wednesday, August 29, 2018, indicate that the highest fine of N2,470,604,767.13 was slammed on Standard Chartered Bank, while Stanbic IBTC Nigeria was fined the sum of N1,885,852,847.45. For its punishment, Citibank Nigeria was penalized in the sum of N1,265,541,562.31, just as Diamond Bank was directed to pay the sum of N250 million for violating extant rules.

The CBN Spokesman further disclosed that the decision of the Bank followed thorough investigations by it into the allegations of remittances by the four banks of forex with irregular certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria Communications Limited.

He said the investigations revealed that the sum of $3,448,119,321.72 was repatriated by Standard Chartered Bank on the basis of the illegally issued CCIs. Similarly, he said the sums of $2,632,005,623.78, $1,766,263,212.75 and $348,914,501.30 were repatriated by Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, respectively during the period 2007 and 2015. Accordingly, he said the CBN had directed the affected banks to immediately refund the respective sums to the CBN.

The CBN investigation further revealed that on account of illegal conversion of MTN shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by the company.

While disclosing that the investigations by the CBN took a while in order to carry out thorough inquiry and give fair hearing to all parties involved, Mr. Okorafor advised all banks and multinational companies in Nigeria to adhere strictly to the provisions of all extant laws and regulations of Nigeria in their foreign exchange transactions. He warned that failure by the management of banks and companies to abide by the existing guidelines would be appropriately sanctioned, which sanctions may include denial of access to the Nigerian foreign exchange market.

Details of the Investigations

CBN’s letter to MTN says:

Our investigation also revealed the following, among others:

i. The shareholders of your company invested the sum of $402,590,261.03 in the company from 2001 to 2006;

ii. The investment was carried out through the inflow of foreign currency cash transfers and equipment importation, which was evidenced by the CCIs issued by Standard Chartered Bank (SCB), Citi Bank (CB) and Diamond Bank (DB);

iii. The CCIs issued at the time of the investment by the above banks to your organization in respect of the $402,590,261.03 showed that $59,436,923.44 was invested as shareholders’ loan and $343,153,339.56 as equity;

iv. However, a review of your organisation’s financial statements for the year ended December 31, 2007 revealed that $399,594,146.00 was recorded/invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by the banks in (iii) above;

v. Following a request by your organization through Standard Chartered Bank for CBN’s approval to convert the shareholder’s loan to preference shares, an approval-in-principle was granted vide our letter dated November 13, 2007; with the grant of final approval made subject to the fulfillment of the following conditions by your organization.

a. Implementation of the decision in item 5B of your board resolution dated November 08, 2007 and submission of documentary evidence to that effect to the Director, Trade and Exchange Department of the Central Bank of Nigeria; and

b. Provision of an undertaking that no remittance for either interest or principal repayment would be made to the shareholders from the date of the loan to the date they were converted to preference shares.

vi. In spite of the non-fulfillment of the conditions in (v) above and consequently, the non-issuance of a final approval by the CBN, your organization converted the shareholders’ loan to preference shares with Standard Charted Bank issuing new CCIs in respect of the illegal conversion;

vii. The action of your banker in aiding your organisation in the illegal conversion of the shareholders’ loan was later described by SCB in a letter to the CBN dated December 10, 2009 as an “unintended omission”; and

viii. On account of the illegal conversion of your shareholders’ loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated on behalf of your company by the aforementioned banks between 2007 and 2015.

 

CBN’s Letter to Standard Chartered bank says:

Our investigation also revealed the following, among others:

i. The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2001 to 2006;

ii. The investment was carried out through the inflow of foreign currency cash transfers and equipment importation, which was evidenced by the CCIs issued by your bank, Citi Bank (CB) and Diamond Bank (DB) at the initial stage of the investment.

iii. The CCIs issued at the time of investment by your bank along with the other banks in respect of the $402,590,261.03 showed that $59,436,923.44 was recorded/invested as shareholders’ loan and $343,153,339.56 as equity. This position was, however, contrary to the position in the financial statements of MTN Nigeria Communications Limited for the year ended December 31, 2007, which revealed that $399,594,146.00 was invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by your bank, Citi Bank (CB) and Diamond Bank (DB). Your action in this regard constituted a rendition of false returns to the Central Bank of Nigeria.

iiii. Your bank subsequently applied to the CBN on behalf of MTN Nigeria Communications Limited for the conversion of the shareholder’s loan to preference shares, for which an approval-in-principle was granted vide our letter dated November 13, 2007 with the grant of final approval made subject to the fulfillment of the following conditions by MTNN:

a. Implementation of the decision in item 5B of MTN Nigeria Communications Limited board resolution dated November 8, 2007 and submission of documentary evidence to that effect to the Director, Trade and Exchange Department of the Central Bank of Nigeria; and

b. Provision of an undertaking that no remittance for either interest or principal repayment would be made to the shareholders from the date of the loan to the date they were converted to preference shares.

v. In spite of the non-fulfillment of the above conditions in (iv) above and consequently, the non-issuance of a final approval by the CBN, your bank issued new CCIs in support of the illegal conversion of the shareholders’ loan to preference shares; an action that was later described by your bank in a letter to the CBN dated December 10, 2009, as an “unintended omission”; and

vi. On account of the illegal conversion of the shareholders loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by your bank and the other banks on behalf of MTN Nigeria Communications Limited between 2007 and 2015.

Other findings from our investigation included the following:

1. Your bank issued three (3) CCIs outside the regulatory 24 hours without the approval of the CBN;

2. In contravention of Memorandum 24 (ii) of the Foreign Exchange Manual, which requires that CCIs should be transferred based on customer’s instructions to a bank of the customer’s choice along with the transaction history of the CCI, you provided confirmation to two other banks, Citibank and Diamond Bank, instead of transferring the CCIs to them as required by the Foreign Exchange Manual.

The two banks on the strength of your confirmation subsequently remitted various sums as dividend for MTN Nigeria Communications Limited at different times; and

3. Your bank failed to issue a letter of indemnity to the CBN against double remittance in respect of ten CCIs transferred by Diamond Bank and Citibank to your bank as required under subsection 5(iii) of Memorandum 24 of the Foreign Exchange Manual.

Upon the conclusion of the investigation, the Committee of Governors of the Central Bank of Nigeria met with the management of your bank and the other banks as well as representatives of MTN Nigeria Communications Limited in Lagos on May 25, 2018. This was to give all the parties fair hearing, towards taking an informed decision on the matter.

 

CBN’s letter to Stanbic-IBTC says:

Our investigation also revealed the following, among others:

i. The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2001 to 2006;

ii. The investment was carried out through the inflow of foreign currency cash transfers and equipment importation, which was evidenced by the CCIs issued by Standard Chartered Bank, Diamond Bank and Citibank, out of which eight of the CCIs totaling $377,216,508.30 were transferred to your bank by Standard Chartered Bank. Consequently, your bank repatriated the sum of $929,051,331.83 as proceeds of divestment from the CCIs valued at $42,704,408.61.

iii. On account of the illegal conversion of the shareholders loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by your bank and the other banks on behalf of MTN Nigeria Communications Limited between 2007 and 2015.

Other findings from our investigation included the following:

a).Your bank falsely reported thirty five CCIs valued $313,683,925.84 inappropriately as “other purchases” in your MTR 203 returns for February 2008 instead of “capital importation”;

b) Your bank issued eight CCIs of $58,359,616.67 in respect of foreign exchange sourced locally as shareholders’ loan. This constituted a contravention of the requirement of Section 15 of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and Memorandum 20 (1.3) (iii) of the Foreign Exchange Manual, which stipulate that CCIs should only be issued on capital imported;

c).Your bank issued eight CCIs for capital inflows in form of machinery outside the 24 hours regulatory requirement of receipt of shipping documents in contravention of paragraph 4.1.1 (IV) of the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2012 to 2013;

d)Your bank failed to issue a letter of indemnity to the CBN against double remittance in respect of twenty CCIs transferred by Standard Chartered Bank to your bank as required under subsection 5(iii) of Memorandum 24 of the Foreign Exchange Manual; and

e) Your bank repatriated dividends totaling $905,260.20 in respect of CCIs illegally issued on the strength of locally sourced capital.

Upon the conclusion of the investigation, the Committee of Governors of the Central Bank of Nigeria met with the management of your bank and the other banks as well as representatives of MTN Nigeria Communications Limited in Lagos on May 25, 2018. This was to give all the parties fair hearing, towards taking an informed decision on the matter.

 

CBN’s letter to CitiBank says:

Our investigation also revealed the following, among others:

i. The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2001 to 2006;
ii. The investment was carried out through the inflow of foreign currency cash transfer and equipment importation evidenced by the CCIs issued by your bank, Standard Chartered Bank and Diamond Bank;

iii. The CCIs issued by your bank along with the other banks in respect of the $402,590,261.03 showed that $59,436,923.44 was recorded/invested as shareholders’ loan and $343,153,339.56 as equity at the time of the investment. This position was, however, contrary to the position in the financial statements of MTN Nigeria Communications Limited for the year ended December 31, 2007, which showed that $399,594,146.00 was invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by your bank, Standard Chartered Bank (SCB) and Diamond Bank (DB). Your action in this regard constituted a rendition of false returns to the Central Bank of Nigeria;

iiii. Your bank issued seven (7) CCIs to MTN Nigeria (MTNN) totaling $42,126,803.04 that were subsequently transferred to Standard Chartered Bank Limited at the request of your customer (MTNN) on February 6, 2006, which constituted part of the CCIs that were consequently irregularly re-issued;

v. Four of the CCIs issued by your bank evidencing the inflow of capital imported as cash were issued outside the period of 24 hours allowed by regulation upon the receipt of inflow, in flagrant contravention of Memorandum 22 of the Foreign Exchange Manual;

vi. Your bank failed to comply with extant regulations on the issuance of letter of indemnity to the CBN in addition to forwarding the transaction history of the CCIs to the CBN, as provided in Memorandum 24(5)(ii)(b) of the Foreign Exchange Manual in respect of the CCIs received by your bank from Standard Chartered Bank; and

vii. Your bank purchased $535,000,000 on the basis of photocopies of Form “A” bearing the name of Standard Chartered Bank as the applicant bank and the referenced CCIs in contravention of Memorandum 24 (4) (a) of the Foreign Exchange Manual 2006.

Upon the conclusion of the investigation, the Committee of Governors of the Central Bank of Nigeria met with the management of your bank and the other banks as well as representatives of MTN Nigeria Communications Limited in Lagos on May 25, 2018. This was to give all the parties fair hearing, towards taking an informed decision on the matters.

 

CBN’s letter to Diamond Bank says:

Our investigation also revealed the following, among others:

I. The shareholders of MTN Nigeria Communications Limited invested the sum of $402,590,261.03 in the company from 2011 to 2006;

II. The investment was carried out through the inflow of foreign currency cash transfer and equipment importation, which was evidenced by the CCIs issued by your bank, Citi Bank and Standard Chartered Bank;

III. The CCIs issued illegally by your bank along with the other banks in respect of the $402,590,261.03 showed that $59,436,923.44 was recorded/invested as shareholders’ loan and $343,153,339.56 as equity. This position was, however, contrary to the position in the financial statements of MTN Nigeria Communications Limited for the year ended December 31, 2007, which showed that $399,594,146.00 was invested as shareholders’ loan and $2,996,117.00 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by your bank, Citi Bank (CB) and Standard Chartered Bank (SCB). Your action in this regard constituted a rendition of false returns to the Central Bank of Nigeria; and

IIII. On account of the illegal conversion of the shareholders loan to preference shares (interest free loan) of $399,594,146.00, the sum of $8,134,312,397.63 was illegally repatriated by your bank and the other banks on behalf of MTN Nigeria Communications Limited, within a period of six years.

Other findings from our investigation included the following:

a)Your bank issued three CCIs in favour of Dantata Investment for the sum of $5million without converting the foreign exchange received into Naira as required by our regulations. On the basis of these illegally issued CCIs, your bank repatriated the sum of $102,545,336.77 in respect of these CCIs;

b) A further review of the CCIs also showed that no Form “M” was opened as evidence of the utilization of the FX for the importation of goods (as “Not valid for FX”) into the country;

c) Your bank remitted the sum of $348,914,501.38 as dividend to MTN Nigeria Communications Limited offshore corporate shareholders without any documentary evidence of the audited account of the company to justify the basis of the payment of the dividend declared and paid by MTNN. This action was a violation of the provision of Memorandum 24(4)(b) of the Foreign Exchange Manual;

d) Your bank failed to indemnify SCB for losses and/or liabilities that may arise from the use of the CCIs you transferred to SCB in violation of the provisions of the Foreign Exchange Manual 2006;

e) Your bank issued three CCIs outside the regulatory 24 hours without the approval of the CBN contrary to provisions of Memorandum 22 of the Foreign Exchange Manual 2006; and

f) Your bank illegally remitted the sum of $352,222,358.39 on behalf of Standard Chartered Bank and Stanbic IBTC Bank in respect of the various CCIs issued to MTN Nigeria Communications Limited.

Upon the conclusion of the investigation, the Committee of Governors of the Central Bank of Nigeria met with the management of your bank and the other banks as well as representatives of MTN Nigeria Communications Limited in Lagos on May 25, 2018. This was to give all the parties fair hearing, towards taking an informed decision on the matter.

Liberia’s Central Bank Governor Resigns

 

Liberia’s Central Bank Governor, Milton Weeks, has resigned midway through his five-year term, the president’s office said.

President George Weah had received and accepted Weeks’ resignation and a successor would be appointed shortly, it said late on Tuesday in a statement that gave no further details.

Weeks was appointed by former president Ellen Johnson Sirleaf in April 2016.

Former soccer star Weah, who took the helm of the West African nation in January, has said he inherited a broken economy and government, and a currency in free fall.

Nigeria Is Getting Out Of Recession – Information Minister

Nigerian Government Hails Whistle-Blower Policy
Minister of Information, Lai Mohammed

The Federal Government has backed a statement made by the Governor of the Central Bank of Nigeria, Godwin Emefiele, that Nigeria is gradually moving out of recession.

The Minister of Information and Culture, Mr Lai Mohammed, represented by the Managing Director of the News Agency of Nigeria (Nan), Mr. Bayo Onanuga, made the assertion at the biennial convention of the Nigerian Guild of Editors in Lagos.

Mr Mohammed backed his claim partly by pointing out that for two consecutive months, the National Bureau of Statistics has also reported a fall in inflation rate, saying that the exchange rate is regaining some sanity.

The minister also said that the Buhari administration and collective will of Nigerians have shamed doomsday prediction that the nation’s recession could worsen into a depression.

Enugu Internal Revenue Board Seals Off Eight Banks

enugu-boardThe Enugu State Board of Internal Revenue has sealed off eight banks in the metropolis, for failure to remit about 1Billion Naira tax to the government.

The exercise which started on Monday morning at about 5:30am, affected Access Bank PLC, Stanbic IBTC Bank, Skye Bank, Union Bank, Unity Bank, Heritage Bank, Keystone Bank and Sterling Bank, in the metropolis.

The Chairman, Enugu State Board of Internal Revenue, Mr Emeka Odo made this known to newsmen in Enugu, that the board obtained an order from the state High Court to seal the affected banks.

Mr Odo, said sealing of the banks which is the first phase of the enforcement exercise on the major companies and institutions will remain under lock and key, to ensure that they perform their civic obligations to the state government.

He however called on customers of the affected banks not to panic as the banks are expected to take necessary actions, to enable the government serve them better.

FCT Police Nab Illegal Money Traders

FCT Police Nab Illegal Currency TradersFour persons have been arrested in the Dei Dei area of the Federal Capital Territory over allegations of involvement in the sale of the nation’s currency – the Naira.

Speaking at a meeting with officials of the Central Bank of Nigeria, the Commissioner of Police in charge of the FCT, Mr Muhammad Mustafa said that over 1.7 million naira was recovered from the suspects.

Their action contravenes the Central Bank of Nigeria act of 2007 which prescribes a six months imprisonment or an option of fine of 50,000 naira or both for the offense of selling, buying, spraying and squeezing the naira.

While this seems to be a major feat in guarding the nation’s currency, Central Bank officials said that the raid would continue.

They also promised to turn their searchlight on Nigerians who spray the nation’s currency at special functions such as weddings and parties.

The Police boss added that the suspects would be charged to court after investigation.

Meanwhile, Mr Mustafa also appealed to the residents who intend to embark on protest march in the city to seek approval before embarking on such.

Nigeria’s External Reserves Rise Further

Nigeria's External Reserves Rise FurtherLatest data from the Central Bank shows Nigeria’s forex reserves rose to 26.2 billion on January 4 2017, up from 25.8 billion dollars on December 30, 2016.

The forex reserves had risen to over four-month high of 25.7 billion dollars on December 28, up from 25.4 billion dollars on December 23.

The foreign exchange reserves have been rising in recent weeks following the gradual increase in oil price and production output.

FX Intervention: CBN Disbursed $355.74m For Raw Materials In October

FX Intervention: CBN Disbursed $355.74m For Raw Materials In OctoberThe Central Bank of Nigeria (CBN) disbursed a total of 355.74 million U.S. Dollars for raw materials imports in the month of October.

A statement issued late Thursday by the financial regulator says the amount was about 40.99% of the total 867.83 million dollars CBN special interbank foreign exchange package.

Out of the 356 million dollars CBN raw materials FX intervention last month, the highest amount goes to school fees, medicals and other invisibles.

At the second place was petroleum industries with 150.81 million dollars while the manufacturing sector received 91.27 million dollars.

On the list also are agriculture, aviation and finished goods.

The Central Bank says the disbursements were based on a total of 7,792 requests that were received for vital raw materials and spare parts sourcing.

CBN Denies Review Of Foreign Exchange Law

forex, CBN, bureau de change, exchange rate, Central bankThe Central Bank of Nigeria (CBN) has denied plans to amend the Foreign Exchange Act.

In a statement, the regulator says it remains committed to safeguarding the international value of the country’s legal tender.

It added that the plans of a 20% fine for any holder and confiscation of funds in domiciliary accounts of individuals is not true.

The news broke over the weekend that the federal government and the CBN were planning to stem volatility in the foreign exchange market with such plans.

The Nigerian Senate on Monday expressed surprise at the recommendation which was made by the Nigerian Law Reform Commission.

The commission recommended a review of the Nigerian Foreign Exchange Act to accommodate punishment for persons holding on to foreign currency.

The commission wants the law to empower the the Central Bank of Nigeria to jail people for up to two years or fine them for 20% of the amount of the foreign currency held in their possession for more than 30 days.

But the Senate’s through its spokesperson, Senator Aliyu Abdullahi, stated that the measure was disruptive and counter-productive and would undermine many of the reform efforts already underway in the legislature and by government ministries intended to boost investors’ confidence.

The proposed changes are said to be intended to help control capital flows and prevent foreign exchange from being taken out of Nigeria.

MMM Nigeria: Reps To Probe Ponzi Scheme Operations

Reps To Probe Ponzi Scheme 'MMM' OperationsThe House of Representatives has mandated its committee on banking and currency and financial crimes to investigate the operations of the internet based wonder bank, known as “MMM Nigeria scheme”.

This resolution was adopted by the House after debating a motion sponsored by Representative Saheed Akinade-Fijabi on the need to check the scheme which he says is capitalizing on the high level of poverty in the land.

The lawmakers also observed that every Nigerian participating in the MMM scheme which has no legal backing is vulnerable to losing their investment as there is no identifiable platform to guarantee the security of the invested funds.

The senators recalled that many Nigerians had been victims of similar schemes in the past, all in the name of making quick money.

The joint committee has four weeks to report back to the House.

Economic Recession: Experts Seek Solution To Challenges

Nigeria-NairaEconomic experts are meeting at the National Institute for Policy and Strategic Studies, Kuru in Jos, north central Nigeria to discuss and proffer solutions to the economic recession with a view on the immediate, short and long time recipes.

The three-day think-tank conference is looking at recession to recovery and growth with discussions on policy options for the Nigerian economy with experts from the organised business and the academia as discussants.

Eminent economists, policy analysts, corporate leaders in the banking and financial sector, the academia, civil society as well as captains of industry and parliamentarians are brainstorming on the theme: ‘From Recession to Recovery and Growth: Policy Options for The Nigerian Economy’.

Setting the tone for discussants at the conference, Chairman, Senate Committee On Governmental Affairs and chairman of the occasion, Senator Tijani Kaura, challenged the gathering to come out with practicable solutions that will take the country out of the economic woods and proffer policies that will make the economy to be buoyant again.

A former deputy governor of the Central Bank, Dr Obadiah Mailafia; the Head of Economics Department at the University of Nigeria, Nsukka, Prof. Stella Madueme and the Executive Director of Capital Markets in the Nigerian Stock Exchange, Haruna Jalo-Waziri also gave recommendations on what should be done in revamping the economy.

The experts appealed to the federal government to harmonise and coordinate various agencies and suggestions being proffered in addressing the economic recession in the country including the outcome of the conference that is ongoing.