FEATURES
Nigerians were shocked to the marrow over the news that no fewer than 9,000 civil servants who sat the 2022 Federal Civil Service Commission’s promotion examinations failed.
According to the report, the list of the workers’ performance was obtained from the Federal Civil Service Commission.
DAILY POST gathered that out of about 13,000 civil servants that sat for the examination, which was held in about 69 Computer Based Test Centres across the country, over 9000 failed, leaving the number of the successful candidates in the neighbourhood of 4000.
The candidates, the report said, were drawn from the core civil service, including the Nigeria Police, other paramilitary and specialised agencies.
The report also said that the letter containing the list of the successful civil servants was dated November 30, 2023, and sent from the Federal Civil Service Commission.
The letter, tagged: ‘FC.6241/S.35/Vol.xi/ T12/268,’ was signed by the Director of Promotions, Sani Bello, and addressed to the Office of the Head of Civil Service of the Federation.
A cursory look at the list showed that only 3,851 civil servants, out of over 13,000 civil servants who sat for the promotion examination passed, while the rest failed.
Since the report filtered into the public domain, Nigerians have been reacting, with many saying that the major problem which the country faces today is the issue of unqualified and dumb civil servants.
Those who hold this line of thought have strongly argued that the civil service of any nation is the administrative engine that keeps such a country’s government running.
Leading this argument is a mechanical engineer, Livinus Eze, who lamented that recruitment into the civil service in Nigeria is no longer based on merit, but rather on one’s ‘connection.’
He told DAILY POST: “I remember in those days, when civil servants were held in high esteem because they were believed to be highly cerebral.
“Those days, when you hear that somebody is a permanent secretary, you would know that such a person is an embodiment of experience, competence and intelligence.
“But, what do we have today? We have a bunch of mediocre people, parading themselves as civil servants.”
How did the country descend into such low ebb?
He said: “The problem started with the introduction of a quota system in the recruitment process. The quota system made it possible that those who were not qualified got jobs in the civil service because of where they came from.
“For me, there is nothing wrong in quota system because it will ensure that one section of the country does not dominate other section, but where a section of the country or a state fails to provide qualified persons for particular vacancies, the proper thing to do is to fill the vacancy with competent and qualified people from outside such area.
“But, in Nigeria, so long as you are from a state or region that must fill certain vacancies, whether you are competent and qualified or not, you will be given the job. And that is the bane of our civil service.
“How can you explain what has happened; that out of 13,000 civil servants, who sat for ordinary promotion exams, which I am sure were based on their job specifications, not up to 4000 passed? And over 9000 failed?
“So, what are they doing receiving fat salaries at the end of every month? No nation can make progress this way; it is quite unfortunate,” he stated.
There are others who insist that the result of the promotion exam has only shown the level of rot in the country’s civil service.
One of those pushing this line of argument is Chidiebere Eze, a business administrator.
He argued that the corruption that is almost destroying every fabric of the country took its roots from the civil service.
“You don’t need to search far to know why Nigeria is classified as the global poverty capital. When you have people who don’t know anything but only to go to work and receive salaries at the end of the month, how can such a country be productive?
“Poverty will inevitably be the lot of such a nation. Everything our politicians know about corruption was learnt from the civil service.
“They were the ones that introduced the famous ‘five percent’ of the 1960s that brought about the first military coup in Nigeria.
“The rot in the civil service is just too much and needs an urgent intervention. And it is good that this kind of exam was conducted and its result made public so that Nigerians can see where their problems are coming from and know what to do to tackle it headlong,” he told DAILY POST.
Also commenting, the Chairman of the Middle Belt Forum, MBF, Dr. Pogu Bitrus, said the import of the massive failure is that the civil service is lacking competence.
While speaking to DAILY POST, he stressed that its implication was low productivity as no man can give what he does not have.
“The implication is that unqualified people are occupying positions in the civil service, meaning that productivity will be very low. Memos will not be up to the standards they ought to be. And of course, performance in the civil service will be declining.
“But that is not a new thing because the unnecessary bureaucracy, which the civil service shows clearly is a function of this kind of performance.
“When incompetent people are occupying positions, of course, their performance will be below standard, and rather than doing things correctly, unnecessary bureaucracy comes in and the whole system suffers as a result,” he said.
On the way forward, he stressed the urgent need for training and retraining of the civil servants.
He said: “We cannot say that people should be sacked, but we are saying that there is the need for training and retraining.
“It is not enough to have a degree, diploma or some certificates, people have to be trained and trained to be able to live up to their potential within the civil service.
“So, there is a need to overhaul the civil service. There is need for retraining of the civil servants and there is need for reorientation in the civil service, so that they will know the exact thing to do as civil servants.
“Then, of course, the world is going digital; we are no longer analogue. Some of the civil servants are still analogue.
“There is a need for training and retraining to bring the civil servants up to the standard of modern civil service, so that their performance can be better.”
On the argument that such a poor performance cannot be dissociated from the recruitment process anchored heavily on quota and federal character principle, he admitted that “the recruitment process has a big problem; it is faulty and that is as a result of quota system and federal character principle.
“People are recruited based on where they come from, the language they speak and the religion they profess, rather than their competence.
“Of course, it has a direct bearing on the quality of their output because competence and performance are together; when you are competent, you perform better.
“We are not saying that the quota system should be abolished because there are some disadvantaged communities, but what we are saying is that we should not sacrifice competence on the altar of quota system or federal character principle.”
On his part, the president of the Arewa Youth Consultative Forum, AYCF, Alhaji Yerima Shettima, commended the Commission for conducting the promotion exam as a way of assessing the capacity of the civil servants.
He, however, decried the outcome, which he said was disappointing and an indication that most of them were not even qualified to have been employed.
He said: “First, it is good that the Federal Civil Service Commission conducted the promotion exam, at least to assess the capacity of the civil servants they wanted to promote.
“However, what the outcome of the exam implies is that most of the civil servants were not even qualified to have been employed in the first place; but because we have a system that encourages corruption, so many of them found themselves there.
“That is why the civil servants are even more corrupt than the politicians, and you don’t see them being productive like their counterparts in other parts of the world.
“It is unfortunate that most of them were not qualified from the outset, but they still found their way there.
“So, what we must do in this circumstance is that we must encourage competence and promote it above the man-know-man approach or what some may like to call ‘connection’ in the recruitment process.
“There is nothing bad in organising a promotion exam for them. Generally, the result is a clear indication that the government must look inward to find people who are competent and productive enough to deliver.
“What this also means is that over time, we never realised that the crop of the civil servants are this dumb but at the end of the day, we have seen what the civil service is made of.
“So, I encourage the government to do more by looking at people based on their competence and bringing them on board to get better results.”
However, a Niger Delta activist, Seigha Manager has a different view about the development.
He said the fact that over 9000 did not pass the promotion exam does not mean they are incompetent and unqualified.
He noted that those who were assumed to have passed and got promoted were those who scored the highest marks to fill the vacant position.
In other words, he explained that there are those who could have scored even above the threshold of the pass mark but could not be promoted because the vacant positions were not enough to accommodate all of them.
He illustrated what he meant with his experience when he was in the service, saying, “For example, when we were writing for our directorship position, nine people wrote the exam and there were only two vacancies.
“Ordinarily, the pass mark would have been 49 percent, but because we were nine and only two people were needed for the two vacancies, the stake was raised.
“The person with the highest mark scored 72 percent. I was the second person with 62 percent. So, it was just the two of us that were promoted to fill the two vacancies.
“There was somebody who scored 61 percent and about three other persons that scored above 55 percent but they could not be promoted because there were only two vacancies.
“I think there were only two people that scored below the pass mark of 49 percent. But, you find out that only two of us passed and got promoted because there were only two vacancies.
“So, invariably, since only two people were promoted, it appeared as if seven others failed, but in actual sense, only two people failed. The other five people could not be promoted because the vacancies were meant for two people that scored the highest marks.
“The pass mark was 49 percent and they scored above that, but they could not be promoted because only two vacancies existed. So, it is the same thing that could have happened in this current case of over 9000 civil servants believed to have failed the recent promotion.
“Not all of them could have failed but because the vacancies that existed were limited, even though they exceeded the pass mark, they could not be promoted.”
“That is exactly what I think could have happened, but that is not to say that every person is intelligent or that nobody failed.
“There were people who could have failed but the majority passed, just that they couldn’t be promoted because the spaces were not enough to accommodate all of them,” he told DAILY POST.
[DailyPost]
The sacked governor of the Central Bank of Nigeria (CBN), Godwin Emefiele allegedly used proxies and purchased Union Bank of Nigeria (UBN), a report by Jim Obazee, the special investigator appointed by President Bola has shown.
The late Alhaji Ismaila Isa Funtua, an ally of former President Muhammadu Buhari, was also fingered alongside Emefiele in the acquisition of Keystone Bank and Polaris Bank.
The acquisitions were carried out separately over time as seen in the report submitted to President Tinubu on December 20, 2023.
Daily Trust Saturday got access to some of the documents through credible sources as the report has not been made public yet.
It was on July 30, 2023 that President Bola Ahmed Tinubu appointed Obazee, the chief executive officer of the Financial Reporting Council of Nigeria as the special investigator.
The Union Bank acquisition
In the report seen by our reporter, the detailed stages followed to acquire the Union Bank, one of the first generation financial institutions in Nigeria, were contained in a memo to President Tinubu, titled, “Report of the Investigation of the Acquisition of Union Bank of Nigeria by Titan Trust Bank.”
The special investigator had requested the CBN to provide his team with all relevant documents, and from what he got, the name of Titan Trust Bank (TTB) was seen as the Special Purpose Vehicle (SPV) for the acquisition.
According to the report, in the documents from the apex bank, it was found that TTB had in a letter of October 25, 2021, sought CBN’s no-objection to its proposed consolidation with Union Bank excluding its UK operations.
This, the letter noted, should be in four phases: the acquisition of 91.5 per cent of the issued shares of the UBN; Mandatory Tender Offer (MTO) for the remaining shares of the UBN; buyout of any share not voluntarily sold to TTB on the MTO; and merger of TTB and UBN with UBN as the surviving entity.
It also stated that consolidation was to be funded via a combination of debt and equity, and CBN via letters dated March 3 and 9, 2022, which granted no objections to TTB’s request to obtain a $300,000,000 facility from Afrexim Bank, as well as capital injection of $175,000,000 from two existing shareholders of TTB; Messrs Luxis International DMCC and Magna International DMCC, all purportedly operating from Dubai in the United Arab Emirates.
And the TTB, via a letter dated June 3, 2022, informed the CBN that it had made the payment of the purchase consideration to the selling shareholders on June 1, 2022, and had thus successfully completed the acquisition of 93.4 per cent of the issued shares of the Union Bank.
The investigator stated in his report to the president that, “When carrying out our investigation, we discovered that some persons were used as proxies by Mr Godwin Emefiele to set up Titan Trust Bank and acquire Union Bank, all from ill-gotten wealth. We were able to secure some documents, and investigation reports will lead to the forfeiture of the two banks by the federal government.
“We have completed our investigation on this acquisition and have also held meetings with relevant parties except for Mr Cornelius Vink (currently hospitalised in Switzerland). We are on the verge of recovering these two banks for the federal government,” the document showed.
Acquisition of Keystone Bank
In another finding titled, “Report of the Investigation of the Acquisition of Keystone Bank,” submitted by the special investigator to President Tinubu, it was stated that after due diligence, it was discovered that some persons were used as proxies with the connivance and assistance of Emefiele and the CBN to acquire the bank without evidence of payment.
It stated, “AMCON MD moved N20billion to Heritage Bank as placement sometime in 2010. On the back of that, Heritage Bank granted a loan of N25billion to the promoters of Isa Funtua/Emefiele group’s acquisition vehicles to buy Keystone Bank.
“The loan was further backed by the shareholders of the bank. Upon acquisition, Keystone Bank returned the N20bn back to Heritage Bank as placement. Thereafter, Heritage Bank repaid AMCON from the cash flow created.
“When the loan granted by Heritage Bank to Isa Funtua/Emefiele’s acquisition vehicles matured with outstanding balance, the MD of Heritage Bank (which was then in serious liquidity crisis), called for repayment. Unfortunately for the shareholders of the bank, the Isa Funtua/Emefiele Group could not repay.
“Consequently, the MD of Heritage got his lawyers to write to the bank on two occasions, threatening to take over Keystone Bank based on the shares they had pledged as security.
“After much pressure from him, Keystone Bank created internal loans of about N50bn between June and October 2019 and moved the proceeds to repay Heritage Bank on behalf of their group. However, the MD of the bank at that time had resigned due to consistent pressure from him and the shareholders to comply. The internal loans so created are not being serviced and have gone bad.
“The special investigator has commenced the interrogation of the MD of AMCON to clarify the situation of the acquisition of both Polaris and Keystone banks beside Arik Air, Aero Contractors and the financial reporting by AMCON,” it stated.
The document showed that the investigator would continue the interrogation of the AMCON MD yesterday, December 22, 2023; and based on preliminary report, Keystone was acquired for free, just as Polaris Bank.
On the issue of Union Bank acquisition, our correspondent last night tried to hear from the officials but was not successful.
However, after insider information in June this year, Daily Trust also wrote to Mrs Olufunmi Aluko, Head, Corporate Communication, Union Bank, to provide some clarification on the transaction surrounding the acquisition of the bank by Titan Bank.
This was before the appointment of the special investigator on happenings in the CBN.
Specifically, one of our reporters sought to know the core investors or individuals behind the acquisition, but unfortunately, that enquiry has not been answered.
Polaris and Keystone banks have not yet reacted to the report.
[DailyTrust]
The General Superintendent of Deeper Life Bible Church, Dr. William Kumuyi, has advised the government to be sensitive and reduce the stress of suffering Nigerians, counseling those in authority to be practical in palliatives.
He also urged Nigerians not to allow themselves to be drowned in the ocean of distress occasioned by the unfavourable situations in the country, but to raise their heads, float, and be profitably engaged despite all odds.
He made the call at the Deeper Life International Conference Centre, Mowe, Ogun State, during the opening ceremony of the December edition of Global Crusade with Kumuyi (GCK) with the theme: ‘Emmanuel;’ which commenced December 21 to run through to December 26 alongside the Youth Impact fixed for Tuesday, December 26.
Kumuyi tasked church leaders to help their needy members at this crucial time when things are hard and not just focus on evangelism and other church programmes.
“It is good we evangelise, but pastors and leaders should equally look into the problems of their members and see whatever the church can do to help them. The Church should exert its efforts and spend some of her resources in the Church to help their needy members” he said.
[TheNation]
A Nollywood actor, Dejumo Lewis, is dead.
The veteran actor died at the age of 80
Actor, Saidi Balogun, confirmed his passing in a post shared on his Instagram account on Saturday.
Sharing the photo of the late veteran, Saidi wrote, “Good night DEJUMO LEWIS, may your soul rest in perfect peace. RIP.”
While the specific details surrounding Lewis’ passing remain undisclosed, Balogun’s tribute has ignited an outpouring of condolences from fans and other actors and actresses.
Lewis is a Nigerian film and television actor, famous for the Kabiyesi role in The Village Headmaster, Nigeria’s longest-running television soap opera shown on NTA from 1968 to 1988 that stared Justus Esiri and Femi Robinson and many others.
Lewis is also known for his memorable performances in acclaimed films such as “A Place in the Stars” (2014), “Crossroads” (2020), and “Power of 1” (2018),
The Central Bank of Nigeria, CBN has lifted ban on transaction in cryptocurrencies, saying banks and other financial institutions can now provide services to cryptocurrency exchanges and dealers also know as Virtual Assets Providers, VAPs.
Accordingly the CBN said financial institutions are now permitted to open accounts for VAPs, provide designated settlement accounts and settlement services, act as channels for foreign exchy flows and trade and render any other activity that may be permitted by the CBN from time to time.
The CBN however said that bank accounts opened for VAPs cannot be used for cash withdrawal and third party cheque.
However the CBN excluded banks from holding or transacting in cryptocurrencies.
Director, Financial Policy and Regulation, CBN, Haruna Mustafa announced the new directive in a circular to banks and other financial institutions, titled, Guidelines on Operations of Bank Account for Virtual Assets Providers, VAPs)
The Circular stated:”The CBN in February 2021 issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.
“However, current trends globally have shown that there is need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPs to be regulated to prevent misuse of virtual assets for ML/TF/PF.
“Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognizes VASPs as part of the definition of a financial institution. In addition, the Securities and Exchange Commission (SEC) in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPs to provide a regulatory framework for their operations in Nigeria.
“In view of the foregoing, the CBN hereby issues this Guidelines to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria.
“The Guidelines supersedes the CBN’s circulars referenced FPR/DIR/GEN/CIR/06/010 of January 12, 2017 and BSD/DIR/PUB/LAB/014/001 of February 5, 2021 on the subject. However, banks and other financial institutions are stili prohibited from holding, trading and/or transacting in virtual currencies on their own account.”
The men of the Kano State Police Command have arrested a couple, Dayyabu Abdullahi and Hasfat Surajo, for allegedly killing one Nafiu Hafiz, who owed them a sum of N10 million.
Hafiz had promised to pay the money within ten months, which elapsed in October. He (Hafiz) reportedly pleaded for an extension till December, which he again failed to keep to.
A friend of the deceased, Fatima Gambo, said when Hafiz couldn’t pay the couple N10 million he borrowed, he begged them for further extension, adding that the company he was executing a project for had not reimbursed him because the CEO had just celebrated two of his daughters’ wedding.
“In the last attempt, on Wednesday that he went to solicit for further extension of his debt repayment, the wife of the man he owed allegedly stabbed him, but they kept his corpse in their house and at night called his father that their son went to the hospital for the surgery, then he died.
“Although the deceased has been a little sick and had confirmed been alright, which convinced the parents that they could be telling the truth.
“So the father and his brothers left Bauchi State around 12 am and arrived in Kano at about 4 am. They went straight to their house to pick up the remains of his son for burial, only to discover that the body was still dripping blood. That raised suspicion even after the couple claimed that they had invited an Imam to bathe and robe him for Islamic burial rites.
So, one of the brothers who accompanied the father, Hafizu Salisu, contacted the police and briefed them on the development,” she added.
When contacted, the spokesperson for the state’s command, Haruna Abdullahi, confirmed the incident, adding that an investigation is ongoing to bring the perpetrators to book.
In the statement he sent to our correspondent, Abdulahi said, “On 21/12/2023 at about 0700hrs, report was received from one Hafizu Salisu of Bauchi Metropolis of Bauchi State that he received a phone call from one Dayyabu Abdullahi ‘m’ of Unguwa Uku Quarters Kano that his brother one Nafi’u Hafiz aged 38 years, is dead and that they should come and convey the corpse for burial.
“When they arrived at the residence at Unguwa Uku Quarters Kano, they discovered several injuries on different parts of the lifeless body suspected to be knife stabs.
“The Commissioner of Police, CP Mohammed Usaini Gumel, directed the Divisional Police Officer, Zaria Road Division, SP Abubakar Chika Zaki, to lead a team of detectives to the scene and to conduct a preliminary investigation.
“Upon arrival at the crime scene by the detectives, the motionless body was removed from the scene and rushed to Aminu Kano Teaching Hospital, where a medical doctor certified the body dead.”
Abdullahi added that further investigation led to the arrest of Hasfat Surajo, aged 24 years, a female housewife of the residence where the deceased lived, stressing that Hafsat admitted that she singlehandedly committed the act by stabbing the deceased on several parts of his body with a knife while he was preventing her from committing suicide.
“Her husband, Dayyabu Abdullahi, aged 38 years, ‘m’, of the same address, and their gateman, Mallam Adam, aged 65 years, were arrested for packaging and concealing the dead body and cover,” the statement added.
He further said that the knife stained with blood recovered from the crime scene would be subjected to thorough and discreet investigation, after which the suspect would be charged in court.
A veteran actor, Patrick Doyle, says that Christmas used to be more fascinating when he was younger.
He noted that though he cannot recall any particular Christmas as his most memorable, it was usually a fascinating period for him, especially when he was between the ages of six and 10.
He told Saturday Beats, “I honestly have no annual Christmas ritual. All I know is that my mood is generally upbeat each Christmas season.”
Talking about how he intends to spend Christmas with his wife, the role interpreter said, “My wife and I have been together for more than two Christmas, so there is nothing new about us spending Christmas together. However, this December, Deji Ali— an old classmate at Finbarr’s— gifted us an all-expense paid ‘staycation’ at the Lakowe Lakes Golf Resort (Lagos). It was really good.”
Doyle also stated that he does not let the economic situation of the country determine his happiness. He said, “I never let the economy dictate the level of my joy. The joy of the Lord and the celebration of the person of Jesus is too exciting for me to worry about what I can or cannot afford.”
Speaking on the growth of the Nigerian entertainment industry, the actor said, “The tremendous growth of the Nigerian entertainment industry has been essentially organic without much interference and deliberate tinkering. I strongly believe the less we obsess with its development, the better it is for the industry; lest we jinx it. Let it just continue to flourish as it is without any ‘oversabi’ input from any quarter.”
The General Superintendent of Deeper Christian Life Ministry, Pastor William Kumuyi, has kicked against same-sex marriage, saying it is not biblical.
While speaking at the Deeper Life International Conference Centre, KM 48 Lagos-Ibadan Expressway, on Wednesday, December 20, Kumuyi stressed that the command of Christ Jesus was for a man to get married to a woman.
“The Lord Jesus Christ told us before he left that we should go to the world, teach all nations, baptizing them in the name of the Father, the Son, and the Holy Ghost; teaching them to observe all things whatsoever I have commanded you. He even says heaven and earth shall pass away but his words will not pass away.
We stand in obedience to Christ and submissive to him and we carry on the works of Christ that said a man and a woman should be joined together in marriage until death do us part,” Kumuyi said
His statement comes a few days after Pope Francis granted permission to priests to bless same-sex couples in church. However, he said the union will not be recognized as marriage.
“Such blessings should not be conducted with any church rites that offer the impression of a marriage,” the pope said
Vin Diesel, the US actor, is being sued by Asta Jonasson, his former personal assistant, over an alleged sexual assault in 2010.
In a lawsuit filed on Thursday, Jonasson alleged that the sexual battery took place at St Regis Hotel in Atlanta during the filming of ‘Fast Five’.
She claimed that the actor pinned her to a wall as he performed a sex act on himself.
The lawsuit alleges that Diesel “ignored Jonasson’s clear statements of non-consent” as he groped her.
The former assistant claimed that after the incident, she was contacted by Samantha Vincent, the actor’s sister — who runs One Race Films, Diesel’s production company — and was fired.
The lawsuit includes charges of wrongful termination, gender discrimination, illegal retaliation, and emotional distress.
Jonasson also claimed she felt exploited for Diesel’s desires.
“It was clear to her that she was being fired because she was no longer useful – Vin Diesel had used her to fulfil his sexual desires,” the suit alleges.
“Ms Jonasson felt helpless, her self-esteem was demolished, and she questioned her skills and whether a successful career would require her to trade her body for advancement.”
However, Bryan Freedman, Diesel’s lawyer, denied the claims, arguing that this was the first time his client had heard of the accusation.
“This is the first he has ever heard about this more than 13-year-old claim made by a purportedly 9-day employee,” he said.
Diesel has appeared in more than 60 TV and film titles.
He is also among the producers of the global hit franchise of ‘Fast & Furious’ films.
He has several upcoming projects in the works, including “Fast X: Part 2.”
[TheCable]
The Peoples Democratic Party, PDP, has slammed the ruling All Progressives Congress, APC, as a failed government.
The party in a post on its official X handle on Friday, claimed that the APC governments at all levels have failed.
It, however, claimed that governors elected on the platform of the PDP were performing and fulfilling their promises.
The statement followed a report that operators of the Oza oil field, Decklar Resources Inc., and its co-venturer, Millenium Oil & Gas Company Limited have delivered a total of 75,500 barrels of crude till date to two modular refineries in Edo State.
Reacting to the development, PDP said the commencement of oil production with the delivery of 75,500 barrels of crude from Oza oil field to two refineries in the state is highly commendable.
The party said it is a testament to the wonderful investment opportunity the governor of the state, Godwin Obaseki, had created for both local and international companies.
“The story coming from Edo State on the commencement of oil production with the delivery of 75,500 barrels of crude from Oza oil field to two refineries in the state is highly commendable. The is a great leap and a testament to the wonderful investment opportunity the @GovernorObaseki administration has created for both local and international companies.
“Unlike the failed @OfficialAPCNg governments at all levels, the @OfficialPDPNig Governors are performing and fulfilling their promises and the letters of the manifesto of our great party, the PDP.”
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Angola has given a reason for quitting the oil producers’ organisation, OPEC, on Thursday.
According to the African oil-producing country, her exit from OPEC is because the cartel no longer serves its interest amid a protracted dispute on output quotas.
The decision of the African oil giant follows last month’s decision by the 13-member cartel and ten allied nations to further slash oil production in 2024 to prop up volatile global prices.
Angola currently produces about 1.1 million barrels daily, of the 30 million from the whole of Opec.
The market responded to the news as Oil prices fell, with Brent prices down over $1 to $78.5 a barrel by 12:50 GMT on Thursday.
Angola’s decision to withdraw from Opec came at Thursday’s cabinet meeting.
Mineral Resources and Petroleum Minister, Diamantino Azevedo said Angola decided to leave Saudi Arabia-led OPEC because it no longer served the African country’s interests.
“We feel that at this moment, Angola gains nothing by remaining in the organisation and, in defence of its interests, it decided to leave.
“If we remained in Opec… Angola would be forced to cut production, which goes against our policy of avoiding decline and respecting contracts,” he said.
Angola – an Opec member for 16 years – joined Ecuador, Indonesia and Qatar, which have exited the cartel.
OPEC is a group of oil producers, including Nigeria, that decides how much crude oil to sell on the world market, along with an expanded group called Opec+.
The Governor of the Central Bank of Nigeria, Oluyemi Cardoso, recently announced plans to recapitalize banks in anticipation of achieving the Tinubu administration’s target GDP size of $1 trillion.
Speaking on the process of recapitalization, Cardoso highlighted the crucial need for banks to be recapitalized, considering the substantial developmental role the apex bank anticipates them to fulfill over the next seven years.
“Considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy. It is not just about the stability of the financial system in the present moment, as we have already established that the current assessment shows stability.
“However, we need to ask ourselves: Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy shortly? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital,’’ Yemi Cardoso
This announcement has sent ripples through the banking industry, echoing the events of 2004 when the Soludo-led Central Bank increased bank minimum capital requirement from N2 billion to N25 billion in a move called banking consolidation.
- The decision at that time compelled numerous banks to merge, reducing the number of banks in the country from over 100 to just 25 by the end of the consolidation process.
- It has been nearly 20 years since then, and commercial banks have substantially increased their shareholder funds.
- But while we have experienced a significant increase in shareholder funds, adjusting for exchange rate devaluation over the years suggests banks are not as strong in terms of capital at least in dollar terms.
Most analysts believe this is perhaps why the central bank is keen on increasing bank’s share capital in 20224.
Bank Shareholder funds
Most tier-one banks, commonly known as FUGAZ, now possess over N1.5 trillion in shareholder funds.
- A selection of the top 10 Nigerian banks also reveals a combined shareholder fund exceeding N11 trillion.
- These are primarily composed of retained earnings, other reserves, and various forms of tier 1 capital acquired from external investors.
- On paper, many of these banks appear robust, and the Central Bank governor has affirmed that they maintain acceptable capital adequacy ratios, meeting most, if not all, of the apex bank’s regulatory benchmarks for solvency.
A recent central bank report also confirmed the soundness of Nigerian banks suggesting their capital adequacy ratios (CAR) was around 14.2%, higher than the 13.8% recorded in the previous quarter.
CBN determined to increase capital
Despite this, credible sources have informed Nairametrics that the apex bank is firmly proceeding with its recapitalization plans, with a formal announcement expected early in 2024.
- Although the exact capital requirements for banks remain unclear, Nairametrics Research anticipates that the focus will be on the bank’s share capital rather than their shareholder funds.
- The share capital of banks comprises issued capital (based on the nominal price) and the share premium (the difference between the nominal price and the actual capital raised).
- Typically, most banks have a significant market share premium but moderate share capital, which is calculated by multiplying their outstanding shares by the nominal share price of 50 kobo.
Current Share Capital of Banks
According to data from Nairametrics Research, 11 major Nigerian banks listed on the NGX have a combined share capital of N1.8 trillion, in contrast to shareholder funds of over N11 trillion, based on their third-quarter results for 2023.
- On average, these banks have a share capital of N163.9 billion, with Ecobank possessing the highest capital at N353 billion and Wema Bank the lowest at N14.9 billion.
- Industry insiders suggest that the Central Bank’s recapitalization plans might vary depending on the size of the banks.
- For instance, Tier 1 banks with an international presence could face significantly higher capital base requirements compared to Tier 2 and regional banks.
What is also poignant to add is that Nigerian banks also have “other forms of capital” estimated at N4.8 trillion per Nairametrics research.
This capital includes reserves, and other forms of tier 1 capital such as quasi debts, reserves held by CBN, etc. The banks also have another combined N4 trillion in retained earnings as of September 2023.
The apex bank is however likely to exclude this capital from the amount it requires the banks to raise in 2024 focussing mainly on share capital (ordinary share capital plus share premium).
Scenario Analysis
In light of this, Nairametrics conducted a scenario analysis assuming a share capital base of N300 billion for Tier 1 banks, N150 billion for Tier 2 banks, and N50 billion for regional banks. This scenario indicates a potential overall capital requirement.
- Based on a scenario of N300 billion share capital, Tier 1 banks could be required to raise around a combined N472 billion.
- If it is N200 billion then they might raise just N149 billion with only GTB and UBA only required to raise capital. In a scenario for N500 billion then the total raise can be a combined N1.6 trillion (inclusive of Ecobank).
However, for this story, we focus on the implication of a scenario for N300 billion.
Tier 1 Banks – Target: N300 Billion
In this scenario, all the Tier 1 banks listed will need to raise capital to meet the minimum share capital requirement of N300 billion.
- United Bank for Africa (UBA), a key player among the FUGAZ, currently boasts a total share capital of N115.8 billion.
- Under the new threshold of N400 billion, UBA might need to raise an additional N184.1 billion, representing the largest capital requirement among all the banks.
- Guaranty Trust Bank (GTB) follows, with a potential need to increase its capital by N161.8 billion, supplementing its current share capital of N138.1 billion.
- Zenith Bank, First Bank of Nigeria Holdings (FBNH), and Access Bank, which complete the FUGAZ group, are likely to require capital raises of N29.2 billion, N48.6 billion, and N48.1 billion, respectively.
- Ecobank, on the other hand, currently has a share capital of N353.5 billion, already exceeding the N300 billion benchmark used in this scenario.
Tier 2 Banks – Target: N150 Billion
In this scenario, all the Tier 2 banks listed will need to raise capital to meet the minimum share capital requirement of N150 billion.
- Sterling Bank faces a significant challenge, as it will likely need to secure an additional N92 billion to reach the target, given its current share capital of just N57.1 billion.
- Other banks in this category, such as Stanbic IBTC, Fidelity Bank, and First City Monument Bank (FCMB), will need to raise N40.7 billion, N34.6 billion, and N24.7 billion respectively to align with the new threshold.
Wema Bank, categorized as a regional bank in our analysis, may need to raise N35 billion.
- However, it’s noteworthy that the bank recently completed a capital raise of N40 billion, already exceeding the N50 billion threshold set for regional banks in our scenario.
- Otherwise, it will need an additional N100 billion to meet the tier 2 bank target used in our scenario.
What this means
Whilst the apex bank’s plan for bank recapitalization is welcomed, banks will be under pressure to post a higher return on equity to justify the raise.
- According to Nairametrics research, Nigerian banks posted a return on average equity of 18%close to the annual average inflation rate of 18.85% in 2022.
- Whilst their 2023 results have performed well above inflation, this is largely due to exceptional item effects of forex gains.
A recent report on Nairametrics also suggests the central bank could rely on CAR as a means towards achieving its capitalization target for banks, an option different from a straight increase in share capital.
- Currently, the CBN requires that banks with international subsidiaries maintain a capital adequacy ratio (CAR) of 15.0% while banks without international subsidiaries maintain a CAR of 10.0%.
- The minimum requirement for systemically important banks is 16.0% (although the CBN has been giving a forbearance).
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Following the implementation of BASEL III, an additional tier 1 capital is required for a Capital Conservation Buffer (CCB1) of 1.0% of TRWA.
[Nairametrics]
Same-sex saga: If devil wants to end Christianity, he’ll first destroy Catholic church – Fr Kelvin
AdminA Nigerian missionary priest serving in Gambia, Rev Fr Kelvin Ugwu has claimed that the devil would only need to destroy the Catholic church in order to wipe Christianity off the earth.
The Catholic priest stated this in a post on his verified Facebook page while reacting to the controversial document endorsed by Pope Francis regarding same-sex marriage.
Recalls that report emerged earlier in the week, indicating that the Vatican approved blessings for same-sex couples.
This development has stirred controversies across the world, as many Christians, including some Catholic bishops distanced themselves from the document.
Some unbelievers have also taken to social media to ridicule Christians over the development.
But Fr Kelvin in his reaction, urged his followers to steer clear of posts and discussions mocking the Christian faith.
He said, “This is not the time for mockery. Don’t join those who have been looking for this opportunity to ridicule our faith in Christ.
“For Christians all over the world, I say this, if the devil wants to scatter this Christian faith kpatakpata, all he needs to do is to destroy the Catholic church. You may not see it, but I don’t pray you see it ever.”
The priest lamented the ambiguity in the document issued by the Vatican, stressing that the undetailed content birthed the controversies.
“A document that almost every Bishop had to explain and clarify to their diocesan people, the Catholic Bishops conferences had to explain, and priests had to explain to their parishioners both online and offline, is not a good document.
“Yes, the document did not say much or make any clear stipulations, and that is basically the problem with the document. What it did not say is more devastating than what it was trying to say”, he added.
The Nigerian Army Council has endorsed advancing 47 Brigadier Generals to the esteemed position of Major General.
Additionally, 75 Colonels have been elevated to the rank of Brigadier General.
The one hundred and twenty-two personnel promoted were confirmed in a statement released on Thursday by the Director of Army Public Relations, Brigadier General Onyema Nwachukwu, Naija News reports.
Those promoted to the rank of Major General include Brigadier General WB Etuk, who serves as the Commandant of the Nigerian Army College of Logistics and Management, as well as Brigadier General JE Osifo, who holds the position of Commandant at the Nigerian Army School of Finance and Administration.
Also promoted are Brigadier General WM Dangana, Commander Sector 3 Joint Task Force North East Operation HADIN KAI, Brig Gen TB Ugiagbe, Acting Chief of Military Intelligence, Brig Gen ASM Wase, Deputy Director General Land Forces Stimulation Centre, Nigeria Operations, Brig Gen MA Abdullahi, Commandant Depot, Nigerian Army, Brig Gen BI Alaya, Commander, Command Engineering Depot, Brig Gen AO Oyelade, Director Personnel Planning, Army Headquarters, Department of personnel Management, Brig Gen OO Arogundade, Commandant, Nigerian Army School of Electrical, among others.
Officers promoted from the rank of Colonel to Brigadier General are Col Nwakonobi, Chief of Staff, Headquarters 3 Brigade; Col MC Akin Ojo, Commander 41 Engineer Brigade; Col BM Madaki, Deputy Director, Army Headquarters, Operations Monitoring Team; Col MO Edide, Director, Staff Army War College Nigeria, Col KE Inyang, Commander 76 ST Brigade, Col OO Nafiu, Chief of Staff, Office of the Chief of Army Staff, among others.
In his remark, the Chief of Army Staff, Lieutenant General Taoreed Lagbaja, congratulated the recently promoted senior officers and their families.
Furthermore, he urged them to intensify their endeavours to validate their promotion and their trust.