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Naira Crisis: Don’t Damage Nigeria’s Economy Beyond Repair For Next Administration, Governors Warn Buhari, CBN



Naira Dollar Exchange Rate - Investors King

As scarcity of naira notes worsens across the country following the cash redesign and swap policies of the Central Bank of Nigeria (CBN), governors of the 36 states of the federation have stated that the situation may have severe negative impacts on the nation’s economy that the incoming administration would not be able to handle.

They alleged CBN and federal government of seizing Nigerian currency and currency exchange policy envisaged under S20(3) of the CBN Act, 2007, adding that the alleged currency confiscation is to make the liquidity provided to the general public to be grossly insufficient due to the restrictions placed on the amount that can be withdrawn regardless of the amount deposited.

They asked the federal government and the apex bank to do the needful by carrying out the suggestions of critical stakeholders who have said more naira notes should be printed while the old and new ones should be used simultaneously till the former phases out.

For the governors, there might be another economic recession if President Muhammadu Buhari and the CBN fail to the Council of State and Nigerians.

Investors King reports that the governors, under the umbrella of the Nigeria Governors Forum (NGF) met last weekend and urged Buhari and Godwin Emefiele, the CBN Governor to review their policies with a view to ameliorating the suffering of the masses, adding that the damage is already crippling businesses across the country.

According to them, should the government at the centre and the apex bank shun the suggestions Nigerians have given to them, the next government would have a rough start economically.

Speaking for the governors, Chairman of the NGF and Sokoto State governor, Aminu Tambuwal, said they feel the pains of Nigerians and that they were determined to employ all legitimate channels to ease the situation.

He said there is a great difference between the CBN Naira redesign policy backed by Section 20 (3) of the CBN Act, 2007 and the aspirational policy of going cashless, adding that both of which are mutually exclusive at this time.

Tambuwal described CBN’s approach as worrisome and that the policies have been robbing Nigerians of their liberties and rights to transact freely with the naira. He said the governors view the cashless policy as a draconian approach that has inflicted pains and misery on Nigerians.

According to him, CBN did not consider that Nigeria has been having steady increase in its nominal Gross Domestic Product (GDP) and the impacts of the debts taken by the Federal Government through the Ways & Means advances and other negative consequences of its policies lately.

He also identified Naira black market, severe food inflation, variable commodities prices based on the method of exchange, and long queues as well as crowds around Automated Teller Machines (ATMs) as other bad results of the policies.

Meanwhile, the forum, according to Tambuwal, urged the federal government and the CBN to respect the Rule of Law and listen to the voice of reason expressed by Nigerians and several other stakeholders including the Council of State, before the damage to our economy becomes too great to fix by the next administration.

Aside lamentations of bank customers, owners of small scale businesses and entrepreneurs have decried the negative effects tye naira swap have been having on their sales.

While some said their businesses have folded up, others note that they no longer get patronage as their customers have not been showing up to patronise them since the scarcity started.

National president of Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, lamented that micro businesses across the country have been affected.

He urged that urgent measures should be taken by the federal government and the apex bank to resuscitate the dying economy.

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Osinbajo Lauds China on Loans Offered to Africans, Repayment System




Nigeria’s Vice President, Prof. Yemi Osinbajo has commended the Chinese government for the loans given to African countries and its repayment system.

According to Osinbajo, the Chinese loans have reduced the reliance of Africans on international financial institutions like the World Bank, and International Monetary Fund amongst others.

He stated these at King’s College, London on March 27, 2023 while delivering a public lecture on ‘China’s Investment in Africa, Investors King reports.

The Vice President lauded China for constantly meeting the needs of African countries which has reduced the burden on the western institutions.

He further mentioned that the loan servicing system was made easy to aid the African economies, especially during the Covid-19 Pandemic in 2020. 

Through its Debt Service Suspension Initiative (DSSI), China offered 73 low income economies suspension of principal and interest payments.

“Chinese banks provided 63% of the total debt relief while being only owed 30% of the debt service payments due,” Osinbajo noted.

The VP pointed out that China is the largest provider of foreign direct investment which provides jobs for hundreds of thousands of Africans.

On Chinese investment in Africa, Osinbajo stated that $254 billion was disbursed in 2021 which was calculated as four times the volume of US-Africa trade.

“China remains by far the largest lender to African countries. Chinese companies have also taken the lead in exploiting minerals in Africa, many now in lithium mining in Mali, Ghana, Nigeria, DRC, Zimbabwe and Namibia. Most African countries are rightly unapologetic about their close ties with China. China shows up where and when the west will not or are reluctant.

“And many African countries are of the view that the ‘beware of the Chinese Trojan loans’ advice from the west is wise but probably self serving. Africa needs the loans and the infrastructure. And China offers them.”

“All of Chinese lending to Africa is only 5% of all outstanding public and publicly guaranteed debt in low and middle income countries, compared to 23% held by the World Bank and other multilaterals. Chinese lenders account for 12 per cent of Africa’s private and public external debt,” the vice president stated.

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FirstBank Announces a Name Change of its Subsidiaries, Reiterates its Commitment to Boosting Cross-border Payments



First Bank Of Nigeria

First Bank of Nigeria Limited, Nigeria’s premier financial services institution, has announced a phased corporate name change of its subsidiaries in the United Kingdom and Sub-Saharan Africa.

FBNBank UK, FBNBank Sierra Leone, FBNBank Gambia and FBNBank DRC are the first set of subsidiaries effecting the name alignment. They are now known and addressed as FirstBank UK, FirstBank Sierra Leone, FirstBank Gambia and FirstBank DRC. The Ghana, Senegal and Guinea subsidiaries will be next in the phased name change implementation.

The name change is being implemented to align the subsidiaries with the parent brand and to enjoy the strong heritage and brand equity built by FirstBank Nigeria in its 129 years of banking leadership. This will further enhance the quality-of-service delivery resulting in better brand clarity, uniformity and consistency across all the markets where the Bank operates.

A leading financial inclusion services provider, FirstBank Group is committed to its nation-building goal. It has taken giant performance strides on its unique growth trajectory as it continues to build distinctive capabilities through partnerships and the constant drive to reinvent itself.

This performance is evidenced in the numerous awards and recognitions bestowed on the institution. These awards include Best Private Bank for Sustainable Investing in Africa 2023 by Global Finance Awards; Best Corporate Bank in Western Africa 2022 by Global Banking; Finance; Best CSR Bank Africa by International Business Magazine in 2022; and ranked as number one in Nigeria in terms of Overall Performance; Profitability; Efficiency and Return o Risk by the Top 100 African Bank Rankings 2022 released by The Banker Magazine from the stables of Financial Times.

In addition, in Euromoney Market Leaders, an independent global assessment of the leading financial service providers conducted by Euromoney Institutional Investor Plc., the Bank was crowned: Market Leader in Corporate and Social Responsibility (CSR); Market Leader in Environmental, Social and Governance (ESG); Highly Regarded in Corporate Banking and Digital Solutions and Notable: in SME Banking.

Speaking on the name change, Dr. Adesola Adeduntan, CEO of FirstBank Group, said ” the name change which coincides with FirstBank’s 129th founding anniversary (March 31 st , 2023) is indeed a milestone reflective of our resolve to continuously provide the gold standard of excellence and value as we put our customers First.  The new identity of the subsidiaries contributes to an enhanced brand presence. It helps our customers and stakeholders better appreciate the value of the diversified products suites, competitive pricing and extensive business networks the FirstBank Group offers. These include our commitment to boosting cross-border businesses including trade and investment opportunities essential to enhancing trade relations amongst countries, thereby strengthening the economies of host communities and reducing poverty,” he concluded.

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First Bank Denies Forgery Allegation in Face of Legal Battle with Loan Defaulter



Loan - Investors King

First Bank of Nigeria Limited has issued a denial against the forgery allegation made by Francis Chukwumah Nwufor, the owner of Whiteplains British School.

In the lawsuit marked CR/266/2023, the federal ministry of justice had accused the bank of forging a “tripartite legal mortgage without the consent of Mr Francis Chukwumah Nwufor, with intent to commit fraud.”

In an official statement, First Bank described the accusation as a spurious allegation made by a delinquent debtor, which is aimed at tainting the bank’s loan recovery efforts and legal enforcement of its security collateral interest in line with the terms of the loan.

The bank emphasized that it operates by the highest standards of ethical conduct and will under no circumstances involve itself in any act of illegality. It further assured its numerous customers, stakeholders, and the general public that it remains focused on its mission of providing the best financial services.

The case has been adjourned until May 8th, as the prosecution lawyer stated that all the defendants had yet to be served with the charge.

It is common for loan defaulters to resort to legal battles with banks and this case is no different. However, it is important for both parties to ensure that the matter is handled in a transparent and legal manner.

First Bank’s denial of the allegation is a clear indication that it is standing firm against any attempt by recalcitrant debtors to fritter away depositors’ funds under its custody. The bank’s focus on its mission of providing the best financial services to its numerous customers is commendable and should be the guiding principle for all financial institutions.

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