CBN hikes BDC license fees to N2bn.

CBN hikes BDC license fees to N2bn.

The Central Bank of Nigeria (CBN) has introduced a fresh set of guidelines to keep Bureau De Change (BDCs) in check. Under the new guidelines BDCs in the Tier 1 category must have a capital requirement of N2 billion, while Tier 2 BDCs must have a capital requirement of N500 million.

Tier 1 BDCs formally were expected to cough out N15 million to acquire the license. This represents a 13,233.33 percent licence fee hike.

The CBN was forced to come up with a new set of guidelines in order to address the ongoing foreign exchange crisis in the country.

The Financial Policy and Regulation Department of the CBN headed by Haruna B Mustafa detailed what is now expected of BDCs in Nigeria.

The guidelines specify that banks, government agencies, and NGOs are prohibited from having ownership stakes in BDCs. The permissible activities for BDCs include buying and selling foreign currencies, issuing prepaid cards, and acting as cash points for money transfer operators. BDCs are not allowed to take deposits, grant loans, deal in gold, or engage in capital market activities.

In terms of sourcing foreign currencies, BDCs can obtain forex from authorized dealers, travelers, hotels, embassies, and other sources. For large transactions exceeding $10,000, a declaration of the source is required.

Regarding the sale of foreign currencies, BDCs can sell forex for purposes such as travel, medical bills, and school fees, up to specified limits per customer annually. At least 75 percent of the sales must be conducted through electronic transfers, while the remaining 25 percent can be in cash.

There are two tiers of BDCs: Tier 1, which has a national presence with branches and franchises, and Tier 2, which is limited to operating in one state with a maximum of three locations.

BDCs are required to verify the identity of their customers, maintain transaction records, connect to CBN systems, and display rates clearly. They must also submit specified regulatory returns, make their records available for inspection, and comply with the guidelines.

The guidelines also outline standards for Tier 1 BDCs that appoint franchises, covering areas such as policy, monitoring, and branding. Prudential requirements are set for BDCs, including limits on open positions, fixed assets, borrowings, and dividend payments. Additionally, BDCs must comply with anti-money laundering and countering the financing of terrorism regulations, with regard to policies, monitoring, and reporting.

The Nigerian naira has recently hit an all-time low of N2,000 against the dollar due to the prevailing economic crisis in the country. In response, the National Security Adviser, Mallam Nuhu Ribadu, instructed the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), and other security agencies to crack down on currency speculators in the forex market. This has led to raids on BDCs nationwide and the arrest of some illegal operators.

In a related development, the Central Bank of Nigeria has announced new measures regarding the foreign exchange (FX) rate to be used for Import Duty Assessment.

The bank has advised that the Nigeria Customs Service and other relevant parties should adopt the closing FX rate on the date of opening Form M for the importation of goods as the rate to be used for assessing import duty.

This rate will remain valid until the completion of the importation and clearance of goods by the importers.

This decision the CBN said is intended to provide clarity and reduce uncertainty for both the Nigeria Customs Service and importers, allowing them to better plan and manage their revenue and cost structures amid fluctuating daily exchange rates.

“Effective from February 26, 2024, the closing rate on the date of opening Form M for the importation of goods and services will be the rate applied for the assessment of import duty” the CBN circular read.

This replaces the requirements outlined in Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition), 2018.

While the Central Bank of Nigeria acknowledges the initial volatility and price distortions following the liberalization of the FX market, it is confident that these reforms will ultimately stabilize the market and establish the necessary market confidence to attract investment capital for the growth and development of the Nigerian economy.

Lift ban on production, sale of alcoholic content in sachet, Reps tells NAFDAC.

Lift ban on production, sale of alcoholic content in sachet, Reps tells NAFDAC.

The House of Representatives Committee overseeing the National Agency on Food, Drugs Administration and Control (NAFDAC) has ordered the suspension of the ban on the production and sale of spirits and alcoholic drinks in sachets and pet bottles.

The committee headed by former Benue state First Lady, Regina Akume said the suspension should be in force pending its investigations into the issue.

NAFDAC had banned the production and sale of spirits and alcoholic drinks in sachets and single-use plastic with immediate effect, but the House at Plenary directed its committee to investigate the issue.

The House initially declined to instruct NAFDAC to lift the ban.

However, following a meeting involving the regulatory agency and various stakeholders, it was decided that NAFDAC should postpone the enforcement of the ban.

Those who attended the meeting are Regina Akume and her Deputy Chairman,  Idu Obiajulu; the Minister of State for Health, Tunji Alausa; NAFDAC DG, Prof Mojisola Adeyeye; the DG, Manufacturers Association of Nigeria (MAN), Segun Ajayi- Kadir, representatives of the Food, Beverage & Tobacco Employers and Distillers and Blenders Association of Nigeria; representatives of the spirits and alcoholic drinks producers;  the Nigerian Police Force; Customs and Excise; Federal Road Safety Corps; organised labour and civil society were present.

The NAFDAC DG told the gathering that the ban was imposed to protect the health and welfare of children, youths, and other vulnerable groups.

But despite her position, the committee aligned itself with the views of the Spirit producers, civil society, and organised labour that the unemployment and hardship being occasioned by the closure of the factories as a result of the ban far outweighed the health concerns being raised by NAFDAC.

The committee observed that the proper step is to put in place control procedures to prevent children and youths from consuming the alcoholic contents of the sachet and pet bottles.

Tinubu, others pay last respect to Akeredolu.

Tinubu, others pay last respect to Akeredolu.

President Bola Tinubu, on Friday,  February 23, led Nigerians to pay last respect to former Ondo state governor, Oluwarotimi Akeredolu.

 

President Tinubu who described late Akeredolu as a “fearless soldier” and “unwavering advocate” for the people said the former governor was an “indomitable legacy of national service.”

Tinubu spoke in Owo, headquarters of Owo local government, at the funeral ceremony of Akeredolu held at the St. Andrew’s Cathedral.

Represented by Vice President Kashim Shettima, Tinubu lauded Akeredolu’s courage, dedication and  unwavering stance.

He said there was no point in Akeredolu’s life where his voice shook in telling the truth.

According to him, “We are gathered here today to bid farewell to a remarkable soul.

“We are also reminded that in this transient journey through life, we are but whispers in the wind. The parts of us that endure after we get to the end of our journey are the choices we make, and this moment is the ultimate confirmation of the noble paths trodden by our dear brother.

He was a vastly intelligent man whose passion has created quite a wide vacuum beyond this community. He recognised that the most pragmatic path to serving humanity is to present ourselves willingly to be chosen by the people.

President Tinubu commended Akeredolu’s strength of character and conviction and urged the nation to cherish Akeredolu’s memory and the indomitable legacy he left behind.

Ondo State Governor Lucky Aiyedatiwa said he would not forget the man that made him ‘Governor even in death.’

Aiyedatiwa stated that his former boss used the instrument of governance to intervene in different sectors of the state, including education, health services, and infrastructural development.

He said, “You are all here to pay your friend, our leader, and our governor last respect because of the relationship that he had with all of you at one time or another.

“You are all here because he stood for something: good governance and the rule of law. He means a lot to different people, and that is why he has been described in different words. He was a courageous leader, a fighter, and a warrior. How can we forget him so soon? It is not possible because he lives on.

“For me, I cannot forget him so soon because we share a lot together. How can I forget those political, physical, and dusty roads that we have travelled together since 2012?

“As his political associate, friend, and one-time Director-General of his campaign, Ilaje/Ese-Odo federal constituency, as Deputy Governor nominee, Deputy Governor elected, and Acting Governor whenever he travelled, and now he has made me a governor even in death. How can I forget?”

In his homily, Primate of the Church of Nigeria, Anglican Communion, Dr. Henry Ndukuba, told President Tinubu to urgently resolved hardship being faced by Nigerians.

Dr. Ndukuba said time was running fast for President Tinubu.

Ndukuba said Nigerians were yet to recover from the cashless policy of Emiefele when the current hardship began.

Represented by the Dean of the church of Nigeria, Reverend Blessing Enyindah, Ndukuba said, “May I on behalf of Nigerians pray and call on the President, Senator Bola Tinubu to do something to reduce the hardship faced by Nigerians.

“We have the hope he would do it because he promised us renewed hope and according to him, it is his turn, so the turn and opportunity have been given to him now. We are waiting and expecting the fulfilment of the renewed hope.

“We plead with him to do it fast because time, that is four or eight years as the case may be, is brief and the time is running.

“We have the hope the President will do something. He promised us Renewed Hope. We are waiting with hope. We pray he do it fast.”

The Owo Diocese of the Anglican Church immortalised the former Ondo Governor by naming the yet to be completed N300m Medical and Diagnostic Center after him.

It said ensuring completion of the project that was part of late Akeredolu’s dream was the only way to keep his memory alive.

Dignitaries present included Secretary to the Government of the Federation (SGF), George Akume, National Chairman of All Progressives Congress (APC), Abdullahi Ganduje led other members of the National Working Committee of the party, Governor of Ogun State, Dapo Abiodun, Governor of Ekiti, Aboidun Oyebanji, Governor of Ogun State, Dapo Aboidun, Governor of Oyo State, Abiola Makinde, Governor of Edo State, Godwin Obaseki, Governor of Bayelsa State, Douye Diri, former Governor of Ekiti State, Kayode Fayemi, former Governor of  Ogun State, Ibikunle Amosun.

Others were former Ondo Governor, Dr. Olusegun Mimiko, wife of late Prophet Temitope Joshua, Pastor Evelyn Joshua amongst others.

Anambra unveils free public Wi-Fi.

Anambra unveils free public Wi-Fi.

The Governor of Anambra State, Prof. Chukwuma Soludo, has reaffirmed his commitment to a technologically advanced future for the state, through the launch of the pilot phase of the public Wi-Fi initiative tagged “Solution Wi-Fi”.

The governor said the development was part of his efforts towards transforming Anambra State into a smart mega city.

A statement by the Managing Director/CEO of the Anambra State ICT Agency, Chukwuemeka Agbata, on Friday, said the initiative, driven by the ICT agency in collaboration with Pineheight Systems Limited, signposts a resounding fulfilment of promises outlined towards launching the state into the digital age.

Agbata explained that the agency is dedicated to realising the state’s vision of “Everything technology, technology everywhere”, adding that this pilot phase is part of the ongoing technological transformation under the Soludo administration.

He said, “As part of his visionary manifesto detailed on Pages 20 and 33, Soludo pledged to provide cheap (and ultimately free) Wi-Fi hotspots in public places for the takeoff of the State’s emergence into the digital age and work with development partners to deploy broadband access to schools across all levels and public libraries to improve access to the internet for all and continue to build the digital tribe.

“The broader vision includes collaboration with development partners to provide broadband access to schools and public libraries, thereby enhancing internet accessibility across all strata of the society.

“The Solution Wi-Fi initiative, now operational in three strategic locations in the state capital Awka namely Aroma Junction, Book Foundation, and UNIZIK back gate, will see users within these locations enjoy one hour of free internet access, every 24 hours, during the pilot phase.”

He further explained that all three locations are not only strategic but quite important for students and businesses alike, adding that the deployment of the Solution Wi-Fi to these areas will no doubt boost educational activities while businesses can also leverage it to enhance their online presence.

“High speed and free internet access can also help our teeming young population to begin to create content that will yield revenue amongst other prospects, the opportunities are endless.

“To access the free Solution Wi-Fi, businesses around the designated locations and individuals, can upon activation of their Wi-Fi, and selection of ‘Solution Wi-Fi’, follow the SMS authentication prompt, to create a username (phone number).

“After which they will receive an auto-generated code via SMS. This code serves as the password, granting them one hour of fast internet access per day, with an effective range of up to 200 meters, depending on the user’s device.

“This groundbreaking initiative underscores Anambra State’s unwavering commitment to technological excellence, recently acknowledged at the National Council on Communication, Innovation, and Digital Economy meeting in Kano, where the state received prestigious awards, including Overall Best State in Digital Technology Development, First Position for Best State in Digital Infrastructure Technology Development, and First Runner-up in e-government Implementation and Digital Technology Human Capital Development.

“Anambra State proudly takes its place on the technology map of Nigeria, a testament to Soludo’s steadfast commitment and investment in technology, and the State ICT Agency reaffirms its commitment to a future marked by technological advancement, innovation, and unparalleled progress for the state,” Agbata added.

Governor Soludo had assured the youths of the state that he would address their concerns and give them a better future last November.

According to a statement by the Commissioner for Information, Sir Paul Nwosu, the governor stated this during the maiden youth conference held in Awka.

The statement noted that Soludo made it clear that his administration has the interest of the youths at heart and will continue to provide and plan for the youths of Anambra State.

FG secures €25m agreement to build 28 bridges.

FG secures €25m agreement to build 28 bridges.

The Federal Government through the Ministry of Works has secured a €25m grant for construction of 28 priority bridges in Nigeria.

This was disclosed after a meeting with a team of investors from the Netherlands led by the Nigerian Ambassador to the Netherlands, Oluremi Oliyide on Friday in Abuja.

The initiative is part of moves to secure additional funding to rejig the nation’s economy.

According to a statement signed by the Special Adviser on Media, Orji Uchenna Orji, the Minister of Works, David Umahi finalised discussions with investors from the Netherlands to obtain the grant for the construction of priority bridges in the country.

He said the grant is pending final discussion with Janson Bridging International, Netherlands, and documentation processes with the Ministry of Finance.

The statement read, “The Minister of Works, David Umahi has finalised discussions with investors from the Netherlands to attract a grant of €25m for the construction of priority bridges in Nigeria.”

Continuing, the Minister assured the team of the positive disposition of the Federal Government towards accessing international interventions from donor agencies and other development partners to address the infrastructural deficits inhibiting economic development in Nigeria.

He added that an increase in partnerships and collaborations was necessary to support the funding of the critical sector of the economy for the promotion of robust and equitable economic growth adding that once due diligence was carried out, a proposal will be presented to the President for approval.

He said, “We have a number of projects that we can do together. But I think the best thing to do is to conclude this one, which is a grant, then get the process started, and at the point of agreement and project selection, we shall refer to Mr. President for his approval”

In his remarks, the Nigerian Ambassador to the Netherlands said the team came to discuss the offer of a grant by Janson Bridging International for investment in road infrastructure in Nigeria.

According to him, “Janson Bridging is the largest modular bridge manufacturing and bridging company in continental Europe and the largest bridge rental company in the world. ”

He promised to assist in fast-tracking the agreement implementation process on the side of the company as soon as all formalisations were concluded.

On his part, a member of the team and International Business Consultant, Eric Okunde said the investors were ready and technically prepared to work with the Federal Ministry of Works in the mapping and design of the projects as well as the formulation of the template for the execution of the project.

In the 2024 budget, the government said it would spend N837bn on constructing and rehabilitating 2,254 roads and bridges in the 2023 and 2024 fiscal years across the country to improve the nation’s deteriorating road infrastructure.

Despite this funding, the state of highways remains poor and in need of extra sources of funding.

The Ministry of Works has also stated that it is engaging concessionaires and other private sector organisations to secure investments in the construction of 35,000km of federal road networks.

FG to safeguard, develop border communities – Shettima.

FG to safeguard, develop border communities – Shettima.

Vice President Kashim Shettima has pledged the Federal Government’s commitment to securing and developing Nigeria’s border communities to improve the lives of residents and the security situation in the country.

He also blamed the proliferation of small arms and light weapons on the porousness of border communities.

“Our border communities feel alienated from the rest of the country because of neglect. If we can get development into our border communities, the pressure on the centre will reduce,” Shettima said when he received a delegation from the Border Communities Development Agency at the Presidential Villa, Abuja.

According to a statement signed by the Senior Special Assistant to the Vice President on Media and Communications, Stanley Nkwocha, the VP stressed the importance of border communities on national security and pledged continued support for their development needs.

The statement is titled ‘We must do more to secure our border communities against incursions – VP Shettima.’

The Vice President stated, “Most of the challenges we face stem from our poor border security evident in the free flow of light weapons and ammunition across the border. We need to address the role of the BCDA in changing the security landscape of our country.”

He acknowledged the need for residents to feel a sense of belonging as Nigerians and assured of the government’s commitment to improving access to healthcare and other essential services for the residents of these communities.

Shettima also urged the BCDA to develop a roadmap for strengthening the agency, highlighting the need for increased government funding.

The agency’s Executive Secretary, Junaid Abdullahi, acknowledged the challenges of limited resources and expressed hope that under Shettima’s leadership, the agency would receive the necessary support to fulfil its mandate.

Abdullahi said, “Our border communities feel alienated from the rest of the country because of neglect. If we can get development into our border communities, the pressure on the centre will be reduced. We would have reduced rural-urban migration and also addressed most of our security challenges.

“Under your chairmanship, we believe that following your antecedent as Governor of Borno State, we are sure you will give us the needed support to see that our agency is funded to carry out its mandate.”

Account for airport toll gate revenue since 2015, court orders FAAN.

Account for airport toll gate revenue since 2015, court orders FAAN.

Justice Ibrahim Kala of the Federal High Court in Lagos on Friday ordered the Federal Airports Authority of Nigeria to reveal how much it made from toll gates and parking lots fees in all Federal Government owned airports and how much it remitted from January 2015 till January 2024.

The judge also compelled FAAN (the sole respondent) to provide details of the revenue to a public interest applicant, the Registered Trustees of The Centre for Law and Civil Culture.

Justice Kala gave the agency three months to comply with the order.

The applicant had filed the suit marked FHC/L/CS/1086/2022 following the respondent’s failure to accede to its freedom of information request of August 24, 2022, saying this violated the Freedom of Information Act, 2011.

B.O. Fowewe represented the applicant while A.A. Lawal appeared for the respondent.

Following the conclusion of hearing of the matter on January 25, 2024, with both parties adopting their written addresses, the court adjourned for judgment.

At the resumed hearing of proceedings on Friday, the judge granted the applicant’s prayer, stating that it had satisfied all the conditions stipulated in Section 20 of the FOI Act.

Justice Kala held, “I shall, therefore, reach the irresistible conclusion that the lone issue for determination in this case, that is qhether the respondent is mandated to provide the requested information to the applicant as provided for under the Freedom of Information Act, 2011 and the applicant entitled to the reliefs sought in their originating application, is resolved against the respondent and in favour of the applicant. The applicant’s application succeeds, and it is accordingly granted as follows:

“It is hereby declared that the refusal and failure of the respondents to accede to the applicant’s Freedom of Information requests dated 24/8/2021, 6/10/2021, and 22/4/2022 requesting to know the total annual generated revenue from the toll gates and parking lots in each of the Federal Government owned airports across the Federal Republic of Nigeria since 2015 till date is a gross violation of the Freedom of Information Act, 2011.

“An order of mandamus is, hereby, granted compelling the respondent to avail the applicant with the details of the statement of the accounts showing the total annual generated revenue from the toll gates and parking lots in each of the Federal Government owned airports across the Federal Republic of Nigeria and evidence of yearly remittance of such sum so generated per year from January 2015 to January 2024 within a period of three months from today.”