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CBN Hailed Over Plan To Redesign Naira Notes
The Conference of Nigeria Political Parties (CNPP) has joined other critical stakeholders in the country to thumb- up for the Central Bank of Nigeria (CBN) over its move to redesign the N200, N500 and N1, 000 banknotes.
A statement yesterday in Abuja by its Secretary General, Chief Willy Ezugwu, CNPP, noted that, “Only politicians who intended to buy votes” and other equally ill-motivated elements would criticise CBN’s action.
Also joined in supporting the CBN move, is former President and Chairman, Governing Council, Association of Corporate Treasurers of Nigeria (ACTN), Mr. Zeal Akaraiwe
He described the decision of the CBN as the solution needed to bring in large amounts of cash into the banking system and enhance the effectiveness of the apex bank’s monetary policies.
Akaraiwe expressed this view yesterday during a media briefing organised by ACTN to announce its 2022 Treasury360 Nigeria Conference and Exhibition, scheduled for November 17, 2022.
According to CNPP, “Only politicians who intended to buy votes and financially induce electoral officials, the ignorant of the import of the policy or beneficiaries of proceeds of crimes, including drug barons and kidnappers, will kick against the move by the CBN.”
The umbrella body of all registered political parties and political associations in Nigeria, pointed thatv “The effort of the CBN to control the amount of money in circulation, where N2.7 trillion out of the N3.3 trillion currency-in-circulation was said to be outside the vaults of commercial banks across the country and are found to supposedly be held by members of the public, is of high risk for the country’s economy and her internal security.
“It is, therefore, obvious that many politicians, especially since 2015, amassed illicit wealth and depleted the national commonwealth to the extent that the currency in circulation has more than doubled since 2015, rising from N1.46 trillion in December 2015, to N3.2 trillion as of September 2022, according to the CBN data.”
In addition, CNPP stated, “Certainly, this is unacceptable in any economy controlled by sane financial experts. The CNPP is glad that the timing for this Naira notes redesign is right, as there is no better time than in an election year, especially where politicians have made vote-buying an alternative to convincing the electorate through their track records and capacity to govern beyond rhetoric as well as a commitment to selling the manifestos of their political parties during campaigns.
“In recent times, rather than candidates and their supporters working towards convincing electorates to vote for their preferred political parties, they resort to use of derogatory words against the opposition or fan the embers of ethnicity and religion.“So, as dramatic as the move may seem, the CNPP is totally in support of the CBN and the CBN Governor, Mr. Godwin Emefiele, on this policy initiative and hereby call on all security agencies, including the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC), and the ICPC to redouble efforts to reduce insecurity and electoral corruption by placing all politicians contesting in the 2023 general election on perpetual surveillance.
“We urge the anti-graft units of all security agencies and commissions to use the opportunity created by the new and existing currencies exchange window from December to January 31, 2023, when the existing currencies shall cease to be a legal tender, to monitor illicit campaign financing, money laundering, terror financing, ransom to hostage takers and drug barons.
“In the same vein, bank managers should be banned by the CBN from any form of home delivery of cash to citizens and corporate organisations until after February 1, 2023 to ensure that the country reaps the gains of the CBN monetary policy.“We urge the CBN to ensure that all exchanges of old notes with new notes should go through the bank accounts of the individuals exchanging large sums of money as part of efforts to track illicit funds, as such individuals and corporations can be made to explain how they came about the large sums of monies to security operatives, especially the EFCC.
“We, therefore, call on all well-meaning Nigerians, patriotic Whistle-blowers and security agencies to ensure that this lifetime opportunity leads to sanity in the Nigerian economy and the political arena as part of efforts in deepening democracy and reducing the number of drug lords and corrupt politicians in office from 2023 general election.
“We equally commend President Muhammadu Buhari for his approval of the planned redesign of the currency notes, especially at this time.”Akaraiwe described the CBN decision as a crucial step in bringing back large volumes of money circulating outside the banking system.Akaraiwe spoke at the conference to announce the ACTN conference, with the theme, “Getting Through the Uncertainties of Supply Chain Disruption, Currency Volatility and Inflation.”
Akaraiwe, who is also a member of the governing council of ACTN, said, “On a personal note, we all heard what the CBN governor said yesterday (Wednesday) on redesigning the currency and that is what we should focus on.“The amount of cash in circulation outside the banking system is very alarming. And the CBN needs to take measures to police it. And redesigning the currency is one of the most efficient ways to achieve that. So, that is what they are doing. And I think, in terms of pulling money into the banking system, this is a good way to go about it.
“This is what the CBN is trying to achieve and I think this (redesigning the currency notes) is the best way to achieve it.”Akaraiwe also explained, “What many people are not aware of is that there is a Decimal Law Act that says that if you’re going to redesign the currency, you must give at least three months’ notice. And the central bank has complied with that law.”Incumbent President and Chairman in Council of ACTN, Mrs. Victory Olumuyiwa, said the association would continue to collaborate with CBN in implementing the apex bank’s policies.
Olumuyiwa explained that the Treasury360 Conference and Exhibition was inspired by the corporate treasury practitioners’ commitment to making “positive and impactful contributions to the global relevance of our Nigerian business economies while strengthening our growing nation, Nigeria (sic).“This conference is the first in the series of strategic engagements to inform, educate, highlight, partner and deliver on what will become the foundation for growing the relevance of Nigerian business economies with a focus on our global relevance (sic).
“The importance of a forum like this underscores the important role of corporate treasurers to overcome these challenges and accelerate the pace of change in 2023 and beyond. You will all agree with me that this opportunity to seek and implement pragmatic solutions cannot be overstated.”
Olumuyiwa also announced that Deputy Governor, Economic Policy, CBN, Dr. Kingsley Obiora, would be the special guest of honour at the forthcoming conference, while Chief Executive Officer, FMDQ, Mr. Bola Onadele, would be the conference’s keynote speaker. Emefiele, who announced the resolve of the apex bank to redesign the banknotes at a media briefing on Wednesday in Abuja, had said the redesigning of the notes would affect the N200, N500, and N1, 000 denominations.
Emefiele pointed out that the change was sequel to the approval of President Muhammadu Buhari and circulation of the new banknotes would commence on December 15, 2022. He said the development was also aimed at checking the increasing ease and risk of currency counterfeiting evidenced by several security reports, and the increased risk to financial stability as well as the worsening shortage of clean and fit currency, with the attendant negative perception of the central bank.
Emefiele said there was significant hoarding of naira notes by members of the public, with statistics showing that over 80 per cent of the currency in circulation were outside the vaults of the commercial banks. He said as of September 2022, a total of N3.2 trillion was in circulation, of which N2.73 trillion was outside the vaults of the banks, describing the development as unacceptable.
Emefiele had also urged bank customers to begin paying into their bank accounts the existing currency notes to enable them to withdraw the new banknotes once circulation begins mid-December 2022. The CBN governor said for the purpose of the transition from existing to new notes, bank charges for cash deposits had been suspended with immediate effect. He added that no bank customer should bear any charges for cash returned/paid into their accounts.
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Nigeria Senators Visit Maiduguri, Donate N74m To Borno Flood Victims
Senators in the 10th session of the National Assembly have donated N74m to support the victims of the devastating flood that ravaged Maiduguri, the Borno State capital, last week.
The Deputy President of the Senate, Senator Barau I Jibrin, disclosed this on behalf of the President of the Senate, Senator Godswill Obot Akpabio, when he led some senators to Maiduguri on Tuesday.
According to Senator Barau, each of the 108 Senators would donate N500,000 (N54m), while he personally contributed N10m. The Northern Senators Forum also donated N10, totalling N74m.
The Senators, who were received by the Borno State Governor, Professor Babagana Zulum, included the Chairman of the Northern Senators Forum, Senator Abdulaziz Musa Yar’Adua, Chairman of the Southern Senators Forum, Senator Mukhail Adetokunbo Abiru, Senator Ikra Aliyu Bilbis(Zamfara Central), Senator Onawo Mohammed Ogoshi (Nasarawa South) and Senator Sadiq Suleiman Umar (Kwara North).
Others are Senator Diket Plang (Plateau Central), Senator Babangida Hussaini (Jigawa North-West), Senator Pam Mwadkon Dachungyang (Plateau North),
Senator Mohammed Tahir Monguno (Borno North) and Kaka Shehu Lawan (Borno Central).
Senator Barau commiserated with the Borno State Government and the entire people of the state over the devastating flood.
” Your Excellency, we are here to register our condolences and commiserate with you and the entire state over the ugly flood incident in this beautiful Borno last week.
“Whatever touches Borno has touched the entire country. This is why I’m here with some of my colleagues, even though the President of the Senate was here yesterday (Monday) representing the Senate as a whole.
” But it’s our tradition, normally in an occurrence such as this, even if the father or a leader came to register his condolences, that doesn’t stop those that are under him to go individually or collectively and commiserate with the victims.
” We commiserate with you, and we pray that may Allah grant those who lost their lives Jannatul Firdaus. May Allah SWT quicken the recovery of the injured persons, and may He make those who lost their valuables regain them as soon as possible.
” Yesterday, when the President of the Senate came, he did not tell you what we intended to donate. The situation of the victims profoundly touches us. After our meeting yesterday, we agreed to donate the sum of N54,000,000 (Fifty Four Million Naira). Each senator is donating N500,000, which will be N54m.
” Personally, I am donating the sum of N10 million. I pray that this flood will not occur again in Borno State and the entire country, ” he said.
The Senators also paid a condolence visit to Senator Baba Kaka Garbai, who represented Borno Central in the Eighth Senate over the demise of his mother last week.
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Exclusive: NNPCL, Others Import Tonnes of Off-Spec Fuel into Nigeria
Contrary to its assurances, the Nigerian National Petroleum Corporation Limited (NNPCL) and independent marketers have continued to import substandard and off-specification Premium Motor Spirit (PMS), also known as petrol, into Nigeria.
Investigation revealed that the ‘dirty petrol’ could account for as much as a quarter of the estimated 50 million litres of daily consumption when the volume imported by independent marketers is added to that of the NNPCL.
According to a Motor Tanker Vessels Report of Friday, September 13, 2024, sighted by our reporter, the combined amount of petrol imported through the Apapa, Tincan, Lekki, Calabar, Port Harcourt and Warri ports stood at 261,938 metric tonnes.
These deliveries were imported from the same sources deemed off-specification and damaging to automobiles.
Of the reported quantity, NNPCL received 134,938 metric tonnes, while independent marketers received 127,000 metric tonnes, accounting for about one-quarter of the amount of petrol consumed by Nigerians every month.
The off-specification petrol imports were received as months-long fuel queues persist across the country leaving Nigerians no option but to buy the fuel even as NNPCL management continues to assure that all is well.
An industry source, who does not want his name mentioned to protect his business interest, said: “They (NNPCL and independent marketers) have brought into the country the same kind of fuel that was condemned as dirty petrol but they know people are forced to buy this because the queues and shortage are forcing people to be desperate.”
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Climate Change: Nigeria Makes Case For Borno, Zamfara Flood Victims At AU Parliament
…As Deputy Speaker Narrates How PAP’s Support For PISE-P, Others Can Enhance Peace
Nigeria has strongly advocated payment of taxes by multinationals and billionaires globally to support African countries exposed to the effects of climate change.
The Deputy Speaker of the House of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu and leader of the Nigerian delegation to the ongoing special sitting of the Committees of the Pan African Parliament (PAP) in South Africa on Tuesday presented the country’s position.
Reacting to a paper titled “The Impact of Climate Change and Africa’s Strategic Pursuits Going into COP” delivered by the Director of Programmes and Research, Pan African Climate Justice Alliance (PACJA), Mr. Charles Mwangi Nyambura, Kalu proposed a global climate tax to support climate adaptation in the world’s most vulnerable regions, such as Africa, relying however on the submission of Nobel Prize-winning Economist, Esther Duflo.
The Deputy Speaker who bemoaned the recent flooding in Borno, Zamfara States amongst others said that the idea of the climate tax is to help mitigate the impacts of climate change on the continent.
He said: “Africa is disproportionately impacted by climate change despite contributing just 3.8% to the global share of greenhouse gas emissions in contrast to 23% by China, 19% by the US, and 13% by the European Union.
“Climate change undermines Africa’s progress towards sustainable development goals, hindering economic growth and human well-being.
“At present, nearly 600 million Africans lack access to electricity according to the World Bank, which hinders economic growth, industrial development, and access to essential services.
“Furthermore, Africa faces a widening energy gap compared to South Asia and Latin America, which have made more significant progress in bridging their energy deficits.
“Simultaneously, Nobel Prize-winning economist Esther Duflo has proposed a global climate tax to support climate adaptation in the world’s most vulnerable regions, such as Africa. Duflo’s proposal includes a tax on multinational corporations and billionaires to fund climate adaptation in low-income countries, helping them prepare for and mitigate the impacts of climate disasters.
“This need for climate resilience was brought into stark focus between August and September 2024, when heavy rains affected many local government areas (LGAs) in Borno State, Nigeria, resulting in significant flooding. These floods devastated various communities, displacing many households and damaging infrastructure, crops, and shelters.
“On September 9, 2024, Maiduguri was hit by a massive flood caused by the collapse of the Alau Dam in the neighboring Konduga LGA, marking the first time the dam had overflowed since 2012. The resulting damage from these floods underscores the growing challenge posed by climate variability and human-induced factors, which have increasingly displaced populations across Nigeria.
“In Borno State alone, the International Organization for Migration’s Displacement Tracking Matrix (DTM) identified 320,791 individuals in 65,731 households affected by the floods across 19 LGAs. These include 157,274 internally displaced persons (IDPs) and 108 returnees, all severely impacted by the floods”
Kalu who was accompanied to the event by some members of the Nigerian parliament including members of the House and Senators while speaking on Agenda 2063 of the African Union (AU) said that food and energy insecurity are emerging threats to the stability and prosperity of African nations.
The leader of the Nigerian delegation to the Pan African Parliament’s intervention highlighted the devastating effects of food insecurity, worsened by climate change, conflicts, and economic disruptions.
Emphasizing that Africa’s agricultural potential remains largely untapped, Kalu called for comprehensive agricultural reforms and investment in agribusiness as solutions to the growing food crisis.
While identifying some pressing issues facing the African continent, the Deputy Speaker also emphasized the pivotal role of education as the foundation for Africa’s future.
He underscored the critical role education plays in shaping the continent’s future, aligning it with the African Union’s goals under Agenda 2063.
The leader of the Nigerian delegation called for continental cooperation to ensure that every child, regardless of background, has access to quality education.
This, he said, includes addressing gender disparities, supporting rural schools, and increasing funding for teachers and infrastructure.
“We cannot speak of a prosperous Africa when our education systems are failing to prepare our youth for the challenges and opportunities of tomorrow,” Kalu remarked, calling for unified education policies across Africa.
Also speaking on the issue of security as one of the most significant challenges that has continued to plague Africa, the Deputy Speaker who recalled Nigeria’s experience stressed the importance of collective security mechanisms, such as the African Union’s African Standby Force, and regional cooperation to combat terrorism, organized crime, and violent extremism.
Kalu also decried the unconstitutional changes in government, condemning
coups and unconstitutional transitions as threats to the continent’s democratic progress.
He called on the Pan-African Parliament to take a zero-tolerance stance on undemocratic change of government, encouraging sanctions and regional interventions to restore democratic
governance.
“We cannot allow a return to the dark days where the will of the people is undermined by the actions of a few,” Kalu said.
In his remarks on how PAP can enhance its role of fostering peace across the continent, Kalu said that the parliament should leverage the kind gestures by the African Union (AU) Peace Fund Committee to support some community- driven initiatives such as Peace In South East (PISE-P).
“How can the African Union’s Peace Fund integrate peace initiatives led by civil society and non-governmental organizations that play a significant role in promoting peaceful co-existence?
“Specifically, how can grassroots and community-driven initiatives, such as the Peace in the Southeast (PISE-P) Initiative in Nigeria, be co-opted into the AU’s broader peace projects to enhance their impact?
“Has the AU Peace Fund provided support for community-led peace initiatives, such as PISE-P or similar programs across the continent, that are crucial in addressing local conflicts? If not, what are the reasons for the lack of engagement with such initiatives? Kalu inquired.
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