A lawyer, Festus Onifade, on Tuesday, commenced contempt proceedings against Mr Mohammed Sani, Manager of Abuja office of Multi-Choice Nigeria Ltd, over alleged disobedience to the order made by the Competition and Consumer Protection Tribunal (CCPT).

The News Agency of Nigeria (NAN) reports that the CCPT presided over by Saratu Shafii had, on April 29, made an interim order, restraining the pay-TV firm from increasing DStv and Gotv tariffs scheduled to begin on May 1, pending the hearing and determination of the substantive suit.

The three-member tribunal gave the order following an ex-parte motion moved by Ejiro Awaritoma, counsel for the claimant, Onifade.

Onifade, the claimant and a subscriber, had sued MultiChoice and Federal Competition and Consumer Protection Commission (FCCPC) as 1st and 2nd defendants.

However, despite the order, the company, on May 1, hiked the subscription rates for its DStv and GOtv packages.

Meanwhile, a Notice of Consequence of Disobedience to Order of Court (Form 48) marked: CCPT/OP/02/2024 dated and filed on May 7, warned Sani against disregard to the tribunal order.

It rears in part: “Take notice that unless you obey the under listed order of the Competition and Consumer Protection Tribunal, Abuja given on the 29th day of April, 2024; thus:

“An order restraining the 1st defendant/respondent either by itself, agents, representatives, officers or privies, howsoever described from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st May, 2024, until the hearing and determination of the motion on notice already filed before this tribunal.

“You will be guilty of contempt of this tribunal and will be committed to prison.”

Also in a motion on notice dated and filed May 7, Onifade sought an order of the tribunal, directing MultiChoice to pay the sum of N1 billion “or any amount the tribunal deem may fit appropriate in this circumstance for deliberately disobeying, contravening, and failure to comply with the interim order” granted on April 29.

Given eight-ground of argument, the lawyer said despite the order which was validly served on MultiChoice on April 29, the firm deliberately neglected the order and willfully increased the tariffs of its products and services on May 1.

He alleged that the company had an history of disobeying court/tribunal orders.

In the affidavit attached to the application, the claimant gave history of the company’s disobedience to court orders in previous similar circumstances in the country.

He said in 2015, Justice C. J Aneke of Federal High Court (FHC), Ikeja-Lagos gave an order restraining the company from increasing the prices of its products and services, but it went ahead and increased in-spite of the order of the court.

He saiid in 2018, Justice Nnamdi Dimgba of FHC, Abuja granted an order obtained by Consumer Protection Council (CPC) now FCCPC, restraining the firm from increasing it prices of products pending the matter before it, but the order was not obeyed.

According to him, the actions and attitude of Ist defendant was very reprehensible that the then CPC now FCCPC described it as a violation to the rights of Nigeria consumers and those increases done then were in bad faith.

Besides, the lawyer said in 2022, the tribunal granted an order on March 22, 2022 restraining MultiChoice from increasing its tariffs but it went ahead with the tariff hike on April 1, claiming it was a completed act.

He argued that despite the service and receipt of the order, the company, in flagrant and willful disobedient of the order, still went ahead without recourse to the plight of the customer and increased the tariffs of its services and products on May 1.

Onifade said the firm filed a motion before the tribunal dated April 29 but filed April 30, claiming that “the matter before the court is res judicata and completed act.”

According to him, the non-compliances with the order of the tribunal granted on the 29th April, 2024 is deliberate and an affront to the jurisdiction of this Honourable Tribunal and has brought untold hardship on the claimant.

The lawyer, who said the tribunal had the discretionary powers to grant the application, said it was in the interest of justice to grant his request

Meanwhile, when the matter was called on Tuesday, Onifade told the tribunal that the matter was slated for hearing of his motion on notice.

However, counsel for the Multichoice, Moyosore Onigbanjo, SAN, said he filed an application on April 30 challenging the jurisdiction of the tribunal to make the order it made on April 29.

Besides, the senior lawyer said he also filed a memorandum of conditional appearance on same date.

He argued that where the jurisdcition of the court is challenged, the issue had to be decided before proceeding on other matters.

Lawyer to the FCCPC (2nd defendant), M. Adeke, said though he had been served with the processes in the matter, he sought an adjournment to enable the commission respond to all the applications served on it.

Onigbanjo equally sought an adjournment to enable him respond to fresh processes served on him by Onifade.

He, however, insisted that where the issue of jurudiction is raised, such must be address first.

Onifade did not oppose the application for adjournment and the tribunal, presided over by Thomas Okosun, adjourned the matter until May 16 for hearing.

[TheCable]

Senate President Godswill Akpabio says since the name of the Nigerian Prison Service was changed to Nigerian Correctional Service there have been more jailbreaks in the country.

Akpabio spoke on the floor of the senate on Tuesday while commenting on two pieces of legislation billed for concurrence.

The bills for concurrence were one to repeal and enact the law establishing Revenue Mobilsation Allocation and Fiscal Commission, and another to repeal the Fire Service Act and enact Federal Fire and Rescue Service.

Abba Moro, senate minority leader, argued that there was no need to change the name because the “rescue component” is already part of the responsibility of the fire service.

“I do not think there is a need for that,” Moro said.

In his response, the senate president said there is a need to examine such laws.

“This is something to be looked at. When you are convicted, you are supposed to learn a skill,” Akpabio said.

“But since we changed the name to the correctional centre, there have been more jailbreaks.”

In 2019, former President Muhammadu Buhari signed into law the bill that changed the name of the Nigerian Prison Service to Nigerian Correctional Service (NCoS).

The law provides that the correctional service is split into the custodial service and non-custodial service.

In the non-custodial service, convicts are eligible for community service, probation, and parole.

Since Buhari signed the bill into law, more than 1,000 inmates have escaped from correctional centres across the country.

On April 25, 119 inmates escaped from the Medium Security Custodial Centre in Suleja, Niger state, following a downpour.

[TheCable]

United Bank for Africa Plc (UBA), Africa’s Global Bank , released its financial results for the first quarter ended March 31st, 2024, showing very strong growth across key performance measures.

The Group’s results, which were released to the Nigerian Exchange Limited (NGX) on Friday May 3rd, 2024, saw outstanding year-on-year increases: Gross Earnings rose by 110%, from N271.1billion to N570.2 billion; Interest Income grew by 130%, to N440.7 billion. Operating Income increased by 115%, from N175.7 billion in 2023, to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 Full Year Audited Financials, UBA again saw Profit Before Tax rising significantly by 155% from N61.7 billion in Q1 2023, to N156.34 billion in Q1 2024; while Profit After Tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165% year-on-year.

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said the Group delivered strong first quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification and effective risk management and governance.

He said, “Our record Q1 profit before tax was delivered with triple digit gross earnings growth, supported by very strong interest and non-interest income. Fees and Commissions rose by 118% year-on-year on the back of improved efficiencies and continued digital adoption. This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8%.”

“The Group’s balance sheet grew steadily with Total Assets increasing by 23% to N25.4 trillion. Customer deposits closed at N18.4 trillion, recording a 23% increase year-on-year, largely attributed to growth in current accounts and savings accounts.”

“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”

Also speaking on the performance, UBA's Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance continued to deliver.

He said, “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions. We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk adjusted revenues and cost discipline, while maintaining very sound asset quality.“

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets,” Nwaghodoh stated.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five million customers , across over 1,000 business offices and customer touch points, in 20 African countries and across 4 continents.

With presence in the United States of America, the United Kingdom, France and the United Arab Emirates , UBA connects people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.

The Nigerian Exchange Group (NGX) has relieved some staff members of their jobs days after its annual general meeting (AGM) which was held in Lagos.

Multiple sources told Nairametrics that over 40 staff members of NGX Group were affected, with top shots in the organization asked to go.

The affected staff members, according to sources, include regulatory officers, compliance managers, audit managers, the investment team, the chief finance officer, and the general counsel of NGX, among others.

The overhaul was led by PricewaterhouseCoopers (PwC), a multinational professional services firm, Nairametrics understands.

The PwC carried out a staff audit and made recommendations to Group Managing Director/Chief Executive Officer of Nigerian Exchange Group, Mr Temi Popoola, who implemented the downsizing, a source said.

• “Mr Popoola knew that he was in a position to be the next Group CEO when Oscar Onyema (former NGX Group CEO) left. So, as soon as he assumed office, he contracted PwC to overhaul NGX Group,” an affected senior staff member told Nairametrics.
• “However, several times, PwC asked about job responsibilities from the Human Resources (HR) Department. In preparation for the AGM, as Holdco managers, we were in charge of organizing the AGM and we did a lot of leg work to ensure that we got enough proxy shareholders so as to secure enough percentage required to rectify Popoola as GMD.”

The ex-staffer said after the AGM, same day around 5 pm, a virtual meeting was held with all staff members of the group, where the Group Managing Director said that he had got feedback from PwC and that he was going to scrap offices and allow staff members that were no longer relevant to the organization to go.

Mr Popoola noted that he was going to send termination letters to affected staff the same day and have their emails blocked for access, the ex-staff member said.

• “He didn’t give the affected people the opportunity to ask questions. He said consultants did a transparent job but he did not show the results of the review to anybody,” another affected ex-staff member said.
• “We didn’t know the criteria that were used to come to the conclusion of the sacks. That aside, we have a high staff attrition rate, not to forget that the payout to the board level is extremely high.”

Another affected staff member said the decision of the NGX to downsize was greeted with pessimism, noting that there were no clear criteria for the dismissal.

Currently, the affected staff members are demanding reinstatement, emphasizing their contributions and lack of justification for their terminations.

Some are seeking financial compensation, while others are advocating for reinstatement.

The NGX Group did not comment on the downsizing.

More Insights

• The NGX will not be the first Federal Government-led institution to downsize.

On April 8, the Central Bank of Nigeria (CBN) sacked five to eight directors. Those affected were in Trade and Exchange Department, Securities Department, Development Finance Department, as well as Purchasing and Support Services Department, including the Public Affairs Department, Nairametrics earlier reported.  The regulator equally retrenched 32 staff members the same day, striking fear in the staff.

• So far, the apex bank has sacked 117 staff members across its 27 departments, multiple sources said.
• There are fears that more members of staff will lose their jobs at the CBN, as Governor Yemi Cardoso plans to consolidate his position as a radical central banker.

No big deal

Downsizing not new as it is common in several organizations. Recruitment experts say downsizing is sometimes necessitated by economic downturns, lack of productivity, and redundancies, among others.

• “Downsizing is not always a big deal,” said a recruitment expert, Dan Agim.
• “It is forced upon organizations when there is low productivity or over-recruitment. Sometimes, it is caused by economic downturns, but that is mainly for corporates.
• “At times, it is driven by disloyalty for a new sheriff in town or when a new CEO feels that those around are loyal to the previous CEO. It may also be caused by the perception of imbalance, such as when it is perceived that the majority of people in the organization are from one religious, ethnic, or religious group,” he said.

This is a developing story, more details later…

[Nairametrics]

Despite the constant uncertainty surrounding basic needs, Nigerians face their challenges with a characteristic grin and an ingrained resourcefulness. This unwavering positivity stands as a testament to their unyielding spirit, a guiding light in these tumultuous times.

However, a harsher reality lies beneath the surface. Nigerians are entangled in a web of relentless shortages, a constant strain that threatens the very foundation of their lives. Every day feels like a precarious balancing act, a continuous negotiation with a system teetering on the brink.

From essential commodities like petrol and food to critical services such as power supply and security, Nigerians struggle daily with a crisis that undermines their livelihoods and well-being. The scarcity is not a sporadic occurrence but a persistent state of affairs, haunting the nation with each passing quarter.

Q: “From essential commodities like petrol and food to critical services such as power supply and security, Nigerians struggle daily with a crisis that undermines their livelihoods and well-being.”

The scarcity of petrol, in particular, epitomises Nigeria’s woes. Despite being an oil-producing giant, the country struggles to ensure a consistent supply of fuel, leading to interminable queues at petrol stations and crippling economic activity. This chronic shortage not only inconveniences citizens but also stifles businesses, exacerbating the already dire economic situation.

The plight of Nigerians is exacerbated by the greed of petrol hoarders, who exploit the scarcity to profit at the expense of the masses. The government’s failure to intervene effectively only perpetuates this cycle of exploitation, leaving ordinary citizens to bear the brunt of skyrocketing prices and dwindling resources.

The recent surge in transport fares due to fuel scarcity is a stark reminder of its impact on everyday life. As commuters grapple with exorbitant prices, the cost of living soars, pushing many families to the brink of poverty. Yet, amidst this hardship, the government remains largely indifferent, failing to take decisive action to alleviate the suffering of its people.

Moreover, Nigeria’s energy crisis compounds the nation’s woes, with power supply remaining unreliable despite tariff increases aimed at improvement. Frequent blackouts plunge homes, businesses, and industries into darkness, hindering productivity and exacerbating reliance on costly alternatives like generators.

The government’s response to these challenges has been woefully inadequate, with promises of reform often amounting to little more than empty rhetoric. The lack of tangible solutions only deepens the sense of despair among Nigerians, who continue to grapple with scarcity on a daily basis.

In addition to fuel and power shortages, the soaring cost of food further compounds the plight of ordinary citizens. Inflationary pressures, supply chain disruptions, and climate-related challenges have driven food prices to unprecedented levels, pushing millions of Nigerians into food insecurity.

Meanwhile, the scarcity of security poses a grave threat to the safety and well-being of citizens nationwide. With criminal activities on the rise, Nigerians are forced to live in fear, bearing the burden of securing their lives and properties in the absence of adequate protection from the state.

In light of these challenges, it is imperative that the Nigerian government take urgent and decisive action to address the root causes of scarcity and alleviate the suffering of its people. This requires a comprehensive approach that tackles corruption, inefficiency, and neglect head-on while prioritising the needs of ordinary citizens above all else.

Only through concerted efforts to address these systemic issues can Nigeria hope to break free from the cycle of scarcity and realise its full potential as a nation. Unifying the government, private sector, and citizens behind a clear roadmap for reform is crucial.

Investing in infrastructure, tackling corruption, and fostering economic diversification are just a few steps on the path to a more secure and prosperous future.

The time for action is now before the indomitable spirit of the Nigerian people is pushed to its breaking point. By harnessing their collective resilience and directing it towards solutions, Nigeria can emerge stronger and more hopeful than ever before.

[BusinessDFay]

South African club, Kaizer Chiefs have been put away by the heavy price tag of Super Eagles goalkeeper, Stanley Nwabali.

Chiefs, according to reports in South Africa have keen interest in the shot stopper but can’t afford his R30m (approximately £1.3m) transfer fee.

Nwabali has been linked with several clubs since his impressive performance for the Super Eagles at the 2023 Africa Cup of Nations early this year in Cote d’Ivoire.

Saudi club, El-Ettifaq and Sky Bet Championship outfit, Queens Park Rangers are among the clubs which have been linked with the goalie.

“Kaizer Chiefs, once showing strong interest in Nwabali, are rumoured to have stepped back from any potential deal due to his hefty R30 million price tag.

“However, if Amakhosi are genuinely committed to reshaping their fortunes and bolstering their squad with notable talent, they should consider investing in players like Nwabali, especially given the uncertainty surrounding Itumeleng Khune’s future,” Goal.com writer, Celine Abrahams, noted.

The 27-year-old has two years remaining on his contract with Chippa United.

[DailyPost]

• It’s welcome, say Reps, Muda Yusuf

The Trade Union Congress (TUC), electricity workers, and consumers yesterday described as ‘negligible,’ the 8.1  per cent reduction in the tariff paid by Band A customers.

They called for a reversal of the tariff announced last month by the Nigeria Electricity Regulatory Commission (NERC) for Band A customers, saying there should not be segregation of electricity users.

The House of Representatives and Center for the Promotion of Private Enterprise (CPPE) Chief Executive Officer  Muda Yusuf, however, described the review as a step in the right direction.

NERC which is the regulator of the nation’s electricity sector, had in a statement yesterday directed    the 11 electricity Distribution Companies (DisCos) in the country  to reduce Band A   tariff from N225/kWh to N206.8/kWh for this month. 

The DisCos immediately started complying with the order which NERC explained was primarily informed by the stability of the Naira against foreign currencies.

When the commission upped the tariff paid by customers on Band A feeders last month,  it cited variables like the high cost of gas, prevailing exchange rate, and other macroeconomic factors as reasons.

However, there was an uproar over the adjustments from different quarters.

Yesterday, TUC which is    the umbrella body of senior workers, said pre-April tariff of N66/KWh should be restored while NERC engages with stakeholders .

The union had during the May 1 Workers Day celebration,  issued NERC  a one- week ultimatum to return the tariff to the old price of N66/KKWh . The ultimatum expires today.

“Our ultimatum was very clear: revert to the old N66/KKWh not to reduce. Because the Electricity  Act is very clear there should be stakeholders’ engagement. That was not done.

“ NERC has to revert to the old tariff and let there be stakeholders engagement in line with the provisions of the Electricity Act. So reducing it is unacceptable to us,” said TUC’s Deputy President  Tommy Okon.

Also,  National Union of Electricity Employees (NUEE) Ag. General Secretary  Dominic Igwebike, said: ‘’We are asking for total reversal of the tariff for band A customers.’’

‘’To us as electricity workers, there should be no discriminatory tariff for Nigerians, “  added in a text message.

Consumers   under the aegis of the  Association for Public Policy Analysis (APPA), argued that the new rate of N206.80/kwh ‘’does not make any difference.’’

They  wondered whether or not  the reduction was  enough incentive for manufacturers to remain in business or reduce the costs of their goods.

“Reducing it (tariff) what is the difference? N225, you are now reducing to N206.80.  Industries are dying. What we should be asking is that this amount they are putting now, will it make the industry functional? Will it make the manufacturers to be able to manufacture more and reduce the costs of their products ?,” APPA National President   Princewill Okorie, asked.

Recommending solutions to the Federal Government, Okorie urged it to reverse its policy on gas.

He said: ‘’Government should come up with a new policy that will spell out domestic gas obligation for power generation. Why should  gas that is produced locally  be sold to generating companies(GenCos) in dollars? How should Nigeria that lacks gas for electricity generation export the same product?

‘’It is not a patriotic policy. The solution we want is that the Federal Government should reverse the policy on gas.

“If gas is made available to  the generation companies to generate electricity,   tariff  will be reduced. Why will we have gas in quantity and be  buying gas in dollars in Nigeria  and no percentage   is reserved for generating electricity for Nigerians.

“Rather, the gas is sold abroad by private companies while citizens are suffering by paying high tariffs. It does not help. It is not a patriotic decision at all. Let gas be made available for GenCos.”

The APPA chief  also called on the Federal Government to settle the N47 billion that its Ministries, Departments and Agencies are owing the DisCos.

He said that it was unfortunate that government’s  decisions in the power were, more  often, based on data from the DisCos  and not those generated  by any of its agencies .

Okorie asked:   “Where are the data ? All these decisions taken in the power sector are they based on data from consumers generated at community level? Should the ministry (Power) depend of DisCos to give them report and not verify from the consumers.  

“Who is overseeing consumers’ issues in the Ministry of power? Who is advising the ministry and the President on issues regarding power? Nobody.’’

But the House of Representatives which welcomed the 8.1 tariff reduction agreed that there is more to be done.

The House  had  on April 30 called on NERC  to reverse N225/kWh  tarrif increase. It also raised a committee to hold a public hearing with stakeholders in the power sector and Organised Labour.

Spokesman for the House Akintunde Rotimi told The Nation that the public hearing would proffer lasting solutions to frequent tariff increases by NERC and DisCos.

CPPE founder Yusuf said NERC had by the review shown that it was responsive to the peoples’  concerns

He added that he believes that the tariff slash, no matter how minimal, would have a positive impact on manufacturing in particular and electricity consumers in general.

Yusuf said: “The review is a welcome development and above every other thing it proves that NERC is sensitive to the concerns that have been expressed by the citizens, electricity consumers and the national assembly. It is a good development for manufacturers and electricity consumers generally.

“As to the factor of macroeconomic environment, I hope that if the situation changes may be by this month  or next, NERC would not come back and start reviewing it again because there is also a need for stability in electricity tariff. 

‘’Electricity is of  strategic importance to the economy and not only for its comfort for the people  but for the productivity in the economy.

‘’It is not a sector where we should be expecting another volatility because we have enough volatility in other sectors and no need adding that of electricity into it.’’

 Why tariff was slashed, by NERC

Improvement in the exchange rate  , among other macroeconomic parameters,   induced  the tariff  reduction, said the commission.

It explained in  a statement that the slash was in tandem with the tariff methodology covering this month.

 “The commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates – consequently the Commission has approved a downward review of end-user tariffs for Band “A” customers from N225/kWh to N206.8/kWh,” the statement read. 

NERC also reiterated that it was committed to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry (NESI).

In their separate reactions, the DisCos  which complied almost immediately by reducing the Band A tariff, said  they  follow ‘’directives given by the regulators knowing they are  in the best interest of all parties.’’

They assured customers of continued improvement in service delivery. 

Ikeja Electricity (IE) Head of Corporate Communications, Kingsley Okotie,  assured customers  in   Bands B, C, D, and E that their tariff  ‘’remains unchanged.”

 Okotie added: “We are a compliant Disco; we follow directives given by the regulators knowing it is in the best interest of all parties. We assure our customers of continued improvement in our service delivery as we strive to give them a better quality of service.

  ‘’Please be informed of the downward tariff review of our Band A feeders from N225/kwh to N206.80/kwh effective 6th May 2024 with guaranteed availability of 20 to 24 hours  supply daily.’’ 

The Abuja Electricity Distribution Company said: “We are pleased to share with you the revised tariff for our Band A feeders, which will decrease from N225/kWh to N206.80/kWh effective today(Monday). We assure customers on our Band A feeders of continued availability of electricity supply for 20-24 hours daily.”

The Federal Government, through the Securities and Exchange Commission, is set to delist the naira from all peer-to-peer crypto platforms as the government steps up efforts to tackle exchange rate manipulators and dollar racketeers.

The development came against the backdrop of the recent moves by the Federal Government to regulate Nigeria’s crypto market estimated at $57bn.

The newly-appointed Director-General of the Commission, Emomotimi Agama, disclosed the government’s latest plan during a meeting with members of the Nigerian blockchain industry on Monday.

The meeting was organised by the Blockchain Industry Coordinating Committee of Nigeria.

Agama confirmed that the government was currently drafting a new set of regulations to govern the crypto sector.

Operators in the crypto space have allegedly used the P2P platforms to manipulate the naira and the exchange rate.

 “That is one of the things that must be done to save this space; the delisting of the naira from the P2P platforms to avoid the level of manipulation that is currently happening. I want your cooperation in dealing with this as we roll out regulations in the coming days,” the SEC DG told the members of the local crypto community.

Agama’s announcement came barely a week after the Central Bank of Nigeria instructed payment service banks to caution their customers against engaging in crypto transactions.

The PUNCH understands that some local exchanges in the country, such as OKX, Bitbarter and some platforms under the membership of Stakeholders in the Blockchain Technology Association of Nigeria had already stopped naira services in solidarity with the government.

In March, SiBAN sought collaboration with the Federal Government for proper regulation after developing the Virtual Assets Service Providers Code of Conduct in 2022.

However, the SEC DG urged members of the crypto community in Nigeria to “name and shame” the players involved in the manipulation of the naira.

He maintained that some bad players in the industry were manipulating the national currency, an act that the government was determined to deal with.

Agama said, “We ask with all sense of sincerity that those involved in sharp practices cease. We encourage you to reach out to us by naming and shaming those involved.

“This nation has a future, and this future is dependent on this community. For us at the SEC, our interest is to provide an enabling environment for fintech to thrive, and by so doing; we expect the fintech community to reciprocate by doing the right thing.

“Patriotism can never be wished away. Whatever we do that would bring dishonor to our country, we must try to avoid it. What is very critical and has brought about this meeting are the concerns regarding crypto P2P traders and their effect on the naira.”

He maintained that the SEC under his watch was poised for an innovative digital asset regulatory regime that would sustain Nigeria as Africa’s digital asset powerhouse with diverse solutions like real-world asset tokenization.

This, according to him, will drive wealth and catalyse the country’s capital market.

He said, “We must explore innovative solutions to this problem and strike the right balance between encouraging innovation and safeguarding our national economic interests. This we will do in a friendly and firm manner to enable us to achieve the desired result.

“On that note, I want to emphasise that we are working on different fronts to sustain decent practices within our market. However, we are here to meet ourselves to know those playing within the sector decently and are open to hearing your suggestions on how we can effectively manage all obscure cryptocurrency trading activities within our jurisdiction, P2P inclusive, irrespective of the challenge we all know that P2P trading poses.”

Sunday PUNCH had reported that the proposed Monday meeting would see the government take decisive action on the sector.

Nigeria’s volume of crypto transactions grew by nine per cent year-over-year to $56.7bn between July 2022 and June 2023, according to the 2023 Geography of Cryptocurrency Report by Chainalysis, a United States-based international blockchain analysis firm.

Stakeholders seek collaboration.

In his remarks, the Chairman of the Fintech Association of Nigeria, Dr. Babatunde Obrimah, commended the SEC DG for the bold steps and the proposed partnership with the ecosystem.

He pledged the association’s commitment to working with the DG to sanitise the virtual ecosystem.

On its part, BICCoN requested the setting up of a working group to tackle the various challenges facing the crypto space and move the market forward.

The co-founder of a local exchange, Bitbarter.io, Chukwuemeka Ezike, told The PUNCH that operators within the ecosystem were willing to support and work with the government to ensure that some of the issues relating to the naira’s value were resolved.

While acknowledging that huge investments have been put into building their platforms, he said it would be imperative to work out possible resolutions to enhance the sector’s growth.

On Saturday, the Chairman of BICCoN, Lucky Uwakwe, had said that the group would be seeking to reach a middle ground with the regulator.

Ukakwe said the meeting “is for us to try and bring the industry to be compliant and remove bad actors who abuse technology, especially the concern raised by the government. This has to do with those who use the technology to manipulate the naira.

“We also hope that innovation is encouraged to enable the industry to gain more foreign inflow that will aid the current administration’s drive for foreign investment into the nation, as seen in other countries such as China and the UAE, and not to stifle the industry.”

Fintechs.

Last week, the CBN stopped major fintech firms from onboarding new customers in an ongoing audit of their Know-Your-Customer process.

The ‘Know Your Customer’ compliance level of fintechs has also been a source of worry for regulators. This involves verifying a customer’s identity and understanding their financial activity to prevent financial crimes, such as money laundering, terrorist financing, and fraud.

According to the Nigeria Inter-Bank Settlement System’s fraud watch report, fraud losses increased by 496.96 per cent over the past five years, and financial institution customers lost N59.33bn between 2019 and 2023.

Following the regulatory action, major fintech firms, including Opay and PalmPay, sent emails to their customers on Friday, warning them against trading in cryptocurrency or any virtual currency on their apps. They also threatened to block any accounts found engaging in such activities.

Already, the Economic and Financial Crimes Commission has obtained a court order to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.

The 85-page court order (document), which listed the bank account details of the suspects, was obtained by The PUNCH on Monday.

Justice Emeka Nwite, in a ruling on the ex-parte motion, moved by counsel for the anti-graft agency, Ekele Iheanacho, also granted the commission’s application to conclude the investigation within 90 days.

Part of the court document read, “That the applicant’s (EFCC) application is hereby granted as prayed.

“That an order of this honourable court is hereby made freezing the bank accounts stated in the schedule below, which accounts are owned by various individuals who are currently being investigated in a case involving the offences of unauthorised dealing in foreign exchange, money laundering, and terrorism financing, to the extent that the investigation will be for a period of 90 (ninety) days.”

The President of the Bank Customers Association of Nigeria, Uju Ogubunka, backed the CBN’s move to suspend new account openings on the affected platforms.

He told The PUNCH that the strict regulations that govern deposit money banks must apply to fintechs and microfinance banks to ensure the integrity of the financial institutions.

He said, “Anything that can disrupt the system should not be permitted. If the platforms are being used for things that are against the regulations, I think the CBN decision is OK. I don’t see anything wrong with that. It behoves the companies now to get their KYC right.

In 2021, the CBN restricted banks and other financial institutions from operating accounts for cryptocurrency service providers.

However, in December 2023, the financial regulator lifted the ban.

But fresh concerns emerged in February over the activities of the largest cryptocurrency exchange in the world, Binance, on its peer-to-peer platform, especially on issues relating to its price cap on USDT trading.

Authorities said those activities contributed to the depreciation of the naira.

On March 8, Binance stopped its naira services after two of its executives were detained by the Nigerian authorities

A presidential spokesman, Bayo Onanuga, said Binance could destroy the Nigerian economy by arbitrarily fixing the foreign exchange, rate if not stopped.

While confirming that the government has taken strict action against the website, Onanuga said, “If we don’t clamp down on Binance, Binance will destroy the economy of this country. They just fix the rate.”

“We have saboteurs. Look at what Binance is doing to our economy. That is why the government moved against Binance. Some people sit down using cyberspace to dictate even our exchange rate, hijacking the role of the CBN.

“They just sit down and fix anything they like. It’s sabotage, and we are trying to prevent that from happening henceforth.”

[Punch]

The Central Bank of Nigeria (CBN) has ordered all banks to start charging a 0.5 per cent cybersecurity levy on all electronic transactions within the country excluding 16 listed banking deals.

According to a circular signed by the Director, Payments System Management Department, Chibuzo Efobi; and the Director, Financial Policy and Regulation Department, Haruna Mustafa; the cybersecurity would commence two weeks from May 6, 2024.

The apex bank, in the circular, directed to all commercial, merchant, non-interest, and payment service banks, among others; to start the implementation of the cybersecurity charges after two weeks of the information.

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy,’” the circular partly read.

However, the CBN listed 16 banking transactions exempted from the new cybersecurity levy.

The exempted transactions are listed below:

1. Loan disbursements and repayments

2. Salary payments

3. Intra-account transfers within the same bank or between different banks for the same customer

4. Intra-bank transfers between customers of the same bank

5. Other Financial Institutions instructions to their correspondent banks

6. Interbank placements,

7. Banks’ transfers to CBN and vice-versa

8. Inter-branch transfers within a bank

9. Cheque clearing and settlements

10. Letters of Credits

11. Banks’ recapitalisation-related funding – only bulk funds movement from collection accounts

12. Savings and deposits, including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers

13. Government Social Welfare Programmes transactions e.g. Pension payments

14. Non-profit and charitable transactions, including donations to registered non-profit organisations or charities

15. Educational institutions’ transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions

16. Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.

[Vanguard]