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CIBN Seeks Speedy Passage of FSS 2020 Bills

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  • CIBN Seeks Speedy Passage of FSS 2020 Bills

The Chartered Institute of Bankers of Nigeria (CIBN) has called on the Senate to urgently pass the Financial System Strategy (FSS 2020) Bills into law in order to promote financial inclusion and strengthen electronic payment system in the country.

The CIBN President/Chairman of Council, Prof. Segun Ajibola, was quoted in a statement on Monday to have made the demand during a recent visit by the institute to the Senate President, Dr. Bukola Saraki, at the National Assembly Complex, Abuja.

The CIBN boss explained that the quick passage of Nigeria International Financial Centre Bill, Financial Consumer Protection Bill, and the Electronic Transactions Bill are critical to the implementation of FSS 2020.

He commended the level of work done by the Senate, including the passage of the collateral securities into law, passage of 15 other major economic bills passed to law, the review of about 50 existing extant laws and exemplary leadership skills shown by the Senate President.

He thanked Saraki for his exemplary leadership in getting the eight Assembly to pass legislations, which he said had positively impacted on the financial sector.

This, Ajibola said, had in no small measure enhanced the recovery and resilience of Nigeria’s economy.

He also praised the legislation establishing the Collateral Registry.

He also disclosed that the CIBN will be approaching the NASS to amend its extant law, The Chartered Institute of Bankers of Nigeria Act No. 5 of 2007, in order to further strengthen its capacity to deliver on its statutory mandate.

He said the Body of Bank’s Chief Executive Officers, a committee of the Governing Council of the CIBN on March 27, 2018 unveiled the Shared Agent Network Expansion Facilities (SANEF) in collaboration with the Central Bank of Nigeria, deposit money banks, licensed mobile money operators and super agents.

The institute, he added, had also worked closely with the Central Bank of Nigeria (CBN) in carrying out a national survey on the possible adoption of cryptocurrency (particularly Bitcoin) as a legal medium of exchange in the country.

The CIBN plays a prominent role as the Chair of the Global Banking Education Standards Board (GBEStB) and a member of the Education Standards Committee. The GBEStB is a voluntary, industry-led initiative which aims to develop clear, internationally agreed standards for the education of Professional Bankers.

Also speaking at the event, Director-General of Debt Management Office (DMO), Ms. Patience Oniha, informed the Senate President that she had presented a letter addressed to the Senate President on the Bills.

She explained that in December 2017, the CBN along with other financial sector regulatory institutions held a Strategy Review after 10 years of implementation of FSS2020 initiatives and transformation plans.

The review realised that there were critical legislation that would have created an optimal legislative environment for implementation of the initiatives and transformation plans.
In his response, Saraki said the Senate under his leadership had passed several bills geared towards strengthening the financial sector for the overall growth of the economy.

He said that Nigeria has demographics that highlight more than 70 per cent of the population is in the youth bracket which is an asset to the nation if properly utilised so that it does not become a liability.

He assured that the Senate would continue to work on legislation that will optimise the economic opportunity for Nigerians. He therefore called for improved level of engagement with the Senate in boosting Financial Technology (FinTech) as an area of innovation and exponential growth in the financial sector with high potential for providing jobs for the youth as well as development of a document that will provide a road map for legislative work and deepen the enabling environment for MSMEs access to credit.

The Senate President also said there was need to deepen financial inclusion to reach the unbanked population in hard to reach areas of the country.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Nigerian Oil Theft Escalates to 400,000 Barrels a Day, Exposing Systemic Corruption

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A recent report has revealed that Nigeria’s daily oil losses surged to 400,000 barrels as efforts to curb crude oil theft remain ineffective.

This escalation from 100,000 barrels per day in 2013 underscores the severe and worsening challenge facing the nation’s oil sector.

The report, produced by the public policy firm Nextier, is the result of several months of in-depth investigation.

It reveals a complex web of sophisticated networks involving powerful actors, foreign buyers, security personnel, transporters, and government officials.

This elaborate system facilitates the large-scale theft of crude oil, which has been a significant drain on Nigeria’s economy.

From 2009 to 2021, Nigeria lost 643 million barrels of crude oil, valued at $48 billion, due to theft. This loss represents more than half of the nation’s national debt as of 2021.

The situation has also severely impacted Nigeria’s ability to meet its OPEC quotas, which have dwindled from 2.5 million barrels per day in 2010 to just 1.38 million barrels per day.

The report, authored by Ben Nwosu, an associate consultant at Nextier, and Ndu Nwokolo, a managing partner at Nextier, paints a grim picture of the local dynamics fueling this crisis.

It highlights the involvement of multiple small-scale artisanal actors, who are often supported by local political and security forces. These local actors contribute to the creation of underground economies, further complicating efforts to curb theft.

Environmental hazards are another grave concern. Illegal refining processes, characterized by uncontrolled heat and poorly designed condensation units, have led to numerous explosions. Between 2021 and 2023 alone, these operations resulted in 285 deaths.

Despite these dangers, illegal refineries continue to thrive due to economic necessity and systemic corruption.

Nigeria’s four refineries, which have a combined capacity of 445,000 barrels per day, are currently operating at only 6,000 barrels per day due to mismanagement and corruption.

This shortfall forces the country to rely heavily on imported refined products, further exacerbating the situation.

Massive corruption in oil importation and subsidies has led to billions of naira being unaccounted for between 2016 and 2019.

Moreover, the government’s inability to support modular refineries has perpetuated reliance on illegal operations.

Security forces are often implicated in the theft, providing protection for a fee. Although recent measures, such as the destruction of illegal refineries, have offered temporary relief, these efforts have been short-lived.

New illegal operations quickly emerge, perpetuating the cycle of theft and corruption.

The authors of the report emphasize that addressing this complex issue requires more than punitive measures. They call for a comprehensive approach that tackles the root causes, including the need for effective governance and economic opportunities for affected communities.

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Brent Crude Falls Amid Anticipation of China’s Industrial Output Report

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Brent crude prices fell on Monday, reversing some of last week’s gains as traders anxiously awaited the release of key economic data from China, the world’s largest importer of crude oil.

After climbing 3.8% last week — the first weekly rise in four — Brent crude edged down toward $82 a barrel. Similarly, West Texas Intermediate (WTI) crude was trading near $78 a barrel.

The market’s attention is now focused on China’s scheduled release of industrial output and crude refining figures for May, which are expected to provide crucial insights into the economic health and energy demand of the country.

China’s oil refining — known as crude throughput — is anticipated to be flat or even decline this year for the first time in two decades, excluding the downturn experienced in 2022 due to the COVID-19 pandemic. This projection is based on a survey conducted by Bloomberg among market analysts.

In 2023, China processed a record volume of crude oil as demand rebounded, but signs of robust supply and persistent concerns over Chinese demand have kept oil prices trending lower since early April.

The situation was further complicated by OPEC+’s recent decision to increase output this year, which initially unsettled the market. Key members of the cartel have since clarified that production adjustments could be paused or reversed if necessary.

“Crude has room for growth,” said Gui Chenxi, an analyst at CITIC Futures Co. “The third quarter is typically the peak season globally and should drive oil processing and demand higher.”

Market participants are keenly watching the forthcoming data, as any indications of weakening demand could weigh heavily on prices.

Conversely, stronger-than-expected industrial activity could support prices and offset some of the recent bearish sentiment.

The ongoing uncertainty has led to cautious trading, with investors reluctant to make significant moves until more concrete information is available.

This cautious approach underscores the delicate balance the oil market is trying to maintain amid fluctuating global economic signals.

As the world’s top crude importer, China’s economic performance is a key barometer for global oil demand. The data expected from China will not only influence immediate trading strategies but also provide longer-term market direction.

In the meantime, the oil market remains on tenterhooks, reflecting the broader uncertainties in the global economy.

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Fed’s Decision to Hold Rates Stalls Oil Market, Brent Crude Slips to $82.17

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Crude Oil - Investors King

Oil prices faced a setback on Thursday as the U.S. Federal Reserve’s decision to maintain interest rates dampened investor sentiment.

The Federal Reserve’s announcement on Wednesday indicated a reluctance to initiate an interest rate cut, pushing expectations for policy easing possibly as late as December. This unexpected stance rattled markets already grappling with inflationary pressures and economic uncertainty.

Brent crude, the international benchmark for Nigerian crude oil, saw a drop of 43 cents, or 0.5% to $82.17 a barrel, reflecting cautious investor response to the Fed’s cautious approach.

Similarly, West Texas Intermediate (WTI) crude oil also slipped by 46 cents, or 0.6% to settle at $78.04 per barrel.

Tamas Varga, an analyst at PVM Oil, commented on the Fed’s decision, stating, “In the Fed’s view, this is the price that needs to be paid to achieve a soft landing and avoid recession beyond doubt.”

The central bank’s move to hold rates steady is seen as a measure to balance economic growth and inflation containment.

The Energy Information Administration’s latest data release further exacerbated market concerns, revealing a significant increase in U.S. crude stockpiles, primarily driven by higher imports.

Fuel inventories also exceeded expectations, compounding worries about oversupply in the oil market.

Adding to the downward pressure on oil prices, the International Energy Agency (IEA) issued a bearish report highlighting concerns over potential excess supply in the near future.

The combination of these factors weighed heavily on investor sentiment, contributing to the decline in oil prices observed throughout the trading session.

Meanwhile, geopolitical tensions in the Middle East continued to influence market dynamics, with reports of Iran-allied Houthi militants claiming responsibility for recent attacks on international shipping near Yemen’s Red Sea port of Hodeidah.

These incidents underscored ongoing concerns about potential disruptions to oil supply routes in the region.

As markets digest the Fed’s cautious stance and monitor developments in global economic indicators and geopolitical tensions, oil prices are expected to remain volatile in the near term.

Analysts suggest that future price movements will hinge significantly on economic data releases, policy decisions by major central banks, and developments in geopolitical hotspots affecting oil supply routes.

 

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