The General Overseer of Redeemed Christian Church of God, RCCG, Pastor Enoch Adeboye, has disclosed how God dealt with some billionaires who questioned his accountability over their tithes.
Pastor Adeboye disclosed that four billionaires from one of the branches of RCCG had written to him demanding to know how the ministry spent their tithes.
Addressing his members, Pastor Adeboye disclosed that God punished the branch as most of the members started suffering in their businesses and their contracts were being cancelled.
He said: “The tithe that was coming from this family was hefty. All of a sudden a handful of the big men wrote to me and said every month, you must give us an account of how you are spending our tithe. I said okay, ‘what they are asking for is alright, they are simply asking for transparency. Nothing is wrong with that.
“I said, however, I have gone through the Bible, I have not seen anywhere where God spoke to Moses and said every month, you must give an account of the tithe children of Israel to them. So, I said alright, I will do two things.
“Number one, I will prepare a detailed account of how your money is spent, including if we buy a bottle of coke for first timers. I will put it in a file and every month when you people come for the Holy Ghost Service, that file be on the table. I won’t give it to you. I will put it on the table.
“Anyone who wants to see it can go and read it. But make sure you wait till I have left the room because everything that we are doing in earth is being recorded in heaven. I don’t want my God to say you are the one who handed it over to them and you are there when they were reading. And I did it.
“Number two, I told the treasurer, from now on, any tithe that came from this family, don’t add it to the rest, put it aside. Let me find out if the God who sent me can run his church without these people’s contributions. So, for two separate years, every kobo that came for this family was kept in a separate account.
“It was when Aboaba came from Ibadan, I sent him there and then after he had been in the church for some months, he came to me. He said the people you asked me to go and join are complaining that things are not going well, and they have found out that they offended me, and that’s why their contracts are being cancelled and all manner of things are happening.
“I said we are not quarrelling and God knows I wasn’t quarrelling. I just ignore it. He then said when you knew this was the problem, why did you send me there? I said I didn’t know anything was happening. I just want to know how gracious God can be to me. Then, we reconciled. It wasn’t everybody that offended me.
“It was a handful of people who thought that they were cleverer than God and they brought problems to everybody. It will interest you to know that every one of those involved in that group is no longer in the church and they are not where they ought to be, let me just put it like that.”
The Independent Electoral Commission, INEC, has announced May 20, 2024 as deadline for political parties contesting in the forthcoming Ondo State governorship election, to submit names of their candidates.
This was made known on Monday by the INEC Chairman, Professor Mahmood Yakubu, during a consultative meeting with political party leaders ahead of the 2024 Edo and Ondo States governorship elections.
Yakubu stated that parties were expected to finalise and submit the names of their candidates before May 20, adding that there will be no extension of time.
This, according to him, is when the portal for candidates in the forthcoming Ondo governorship election will close.
The INEC boss said: “Turning to Ondo State, political parties have just concluded their primaries. Eighteen (18) political parties conducted primaries monitored by the Commission. I wish to remind you that parties have one week to the deadline for the nomination of candidates which is 6.00pm on Monday 20th May 2024 when the portal automatically shuts down. I urge you to adhere strictly to the deadline. Political parties have been given 23 days (over three weeks) from the end of primaries to prepare and submit the list of only two candidates (Governorship candidate and running mate) to the Commission. There will be no extension of time.”
Super Eagles head coach, Finidi George, has picked two foreigners and his former international teammate, Daniel Amokachi, as his assistants.
The names of the two foreign assistants will be revealed before the Super Eagles 2026 FIFA World Cup qualifying fixtures against Bafana Bafana of South Africa and Squirrels of Benin.
Finidi has also retained Olatunji Baruwa as the goalkeeper’ s trainer.
Baruwa occupied same position under the previous head coach, Jose Peseiro.
The 53-year-old was unveiled by the Nigeria Football Federation (NFF) on Monday.
The former Ajax star officially left his post as Enyimba head coach on Sunday to concentrate on his new job.
Finidi was in charge of the Nigeria Premier Football League champions for the next three years.
He guided the two-time African champions to their 10th NPFL title last season.
Bullied Student In Viral Video, Namtira Bwara Sues Lead British School, Seeks ₦500 Million In Damages
AFOLABI
A Lead British International School student in Abuja, Namitira Bwala, has filed a civil suit against the school’s management.
She alleged that the school failed in its obligation to provide her with a safe and conducive learning environment.
Naija News recalls there was outrage on social media some weeks back following the emergence of a video on the alleged bullying of a female student of Lead British International School, Abuja, by her classmates.
An X user, @mooyeeeeeee, in an SOS post accompanied by two videos, said the female student was bullied, and she is seeking justice for her.
The matter had gained national attention with stakeholders and members of the public expressing views on the incident.
The suit was filed on May 9, 2024, at the High Court of the Federal Capital Territory, Abuja, through her lawyer, Marvin Omorogbe, Esq, of Deji Adeyanju and Partners.
Bwala in the suit marked FCT/HC/CV/2341/24: Miss Namtira Bwala Vs Lead British International School Ltd which commenced by way of Writ of Summons is seeking among others a public apology that would be published on two national dailies and ₦500 million in general damages.
She claimed among others, “A declaration that by virtue of the Claimant’s studentship in the Defendant’s school, Lead British International School, Gwarimpa, Abuja, the Defendant owes the Claimant a duty of care to protect her from any physical or emotional harm as well as any breach of her privacy while under the Defendant’s custody and supervision.
“A declaration that the Defendant’s failure to prevent the assault, torment, emotional distress, pain and trauma suffered by the Claimant while under the custody and supervision of the Defendant amounts to negligent conduct on the part of the Defendant.
“A declaration that the Defendant’s failure to immediately inform the Claimant’s parents of the assault and emotional trauma suffered by the Claimant while under the custody and supervision of the Defendant amounts to negligent conduct on the part of the Defendant
“A declaration that the Defendant’s failure to cause an immediate investigation into the physical assault and emotional trauma suffered by the Claimant while under its Custody and Supervision, until the video of the incident became viral on social media, amounts to negligent conduct on the part of the Defendant.
“An order directing the Defendant to issue a public apology to the Claimant in two national daily newspapers.
“An order directing the Defendant to pay the Claimant the sum of ₦500,000,000.00 (Five Hundred Million Naira) as general damages for the Defendant’s breach of the duty of care it owes to the Claimant and its negligent conduct in failing to prevent the assault, torment, emotional distress, pain, trauma and breach of privacy suffered by the Claimant while under the Defendant’s custody and supervision.
“Cost of this suit at ₦5,000,000 (Five Million Naira).
“An order directing the Defendant to pay the Claimant post judgment interest on the sum(s) awarded at the rate of 10% per annum from the date of the delivery of judgment until the judgment is fully and finally settled.
“Such orders or other orders as this Honourable Court may deem fit to make in the circumstances.“
Meanwhile, in a statement on Monday, the Counsel for the claimant, Marvin Omorogbe Esq, expressed optimism that the lawsuit will bring about drastic changes and adequate measures to prevent similar issues from reoccurring in the school.
According to the statement, the Lead British International School, Gwarimpa, Abuja, is being sued following a viral video which showed a student being bullied by her classmates.
The victim’s family stated that the school had failed in its obligation to provide a safe and conducive learning environment, resulting in the victim’s experience.
At the moment, a date for the hearing of the lawsuit has not been scheduled.
‘Nigerians Need Jobs, Security, Electricity, Education, Not Hope’ – Catholic Priest Tells Tinubu
Admin
A renowned Priest of the Catholic Archdiocese of Abuja, Rev Fr Chinenye Oluoma, has lamented the state of the nation under the incumbent administration led by President Bola Ahmed Tinubu.
In a statement issued over the weekend via his Facebook page, titled ‘RENEWED SHEGE,’ Oluoma said politicians must stop offering people hope and instead offer them jobs, electricity, education, health care, and security, as these are what Nigerians need.
He expressed his belief that Nigerians may not fully comprehend President Tinubu’s new hope agenda. Oluoma compared hope to anaesthetics, stating that anaesthetics are used to numb pain during life-saving surgeries.
He shared his concerns on Facebook, highlighting the challenges faced by the nation’s currency, the naira, which is struggling to remain below ₦1500 per dollar. Oluoma also pointed out the significant increase in prices of basic commodities, such as bread, which has risen from ₦500 to ₦1200, and other goods that have doubled, tripled, or even quadrupled in price.
According to him, “Hope doesn’t put food on the table, hope doesn’t pay school fees, hope doesn’t pay hospital bills, hope doesn’t pay house rent (which landlords increase indiscriminately and govt ignores infamously); Hope will not create jobs or make electricity supply constant.”
“The problem here is that successive governments in Nigeria keep administering large doses of anaesthetics to us without carrying out any curative surgery. Maliciously increasing the dosage and frequency once we wake up from the effect of the previous dosage.
“At worst, hope is an opium, a psychic drug that makes you feel okay and patient, maybe even comfortable with all the things going wrong.
“It sedates you but doesn’t change your condition. So, Tinubu offered us hope, not jobs, not improved earnings, not stable electricity or a buoyant economy. He offered us hope, and we bought it.”
Furthermore, Oluoma expressed the viewpoint that politicians should not be the ones providing “hope” to citizens; rather, this responsibility should be entrusted to religious leaders.
He emphasized that it is the duty of the government to create job opportunities rather than merely promising them.
He wrote: “Hope shouldn’t be what politicians offer its citizens, it should be left for clerics like my humble self. A government should offer job opportunities, not hope of jobs.
“A government should offer security, power, housing, affordable health care, education and not hope for these things. Why is Nigeria the place where politicians preach like clergy men and clergy act like politicians?
“While the former offer hope, the latter promise jobs, prosperity and other material well being they are in no position and have no capacity to give. What in God’s blue planet is going on with governance in Nigeria?
“As long as the purchasing power of the poor masses keep nose diving and the prices of basic goods and services keep skyrocketing further beyond their reach, what we have is nothing but ‘Renewed Shege’.
“Each administration will always leave our currency weaker than the previous one, a recurring decimal. One administration shows us Shege, another one comes and renews it and we keep dying gradually in hope. Let the poor citizens of Nigeria breathe, please.”
[NaijaNews]
Story highlights
- Nigerian banking stocks have suffered a sharp decline in the second quarter, exacerbated by the Central Bank’s recapitalization directive.
- The FUGAZ stocks, comprising major Nigerian banks like FBNH, UBA, GTCO, Access Corporation, and Zenith Bank, have entered a bearish phase, with share prices significantly declining in anticipation of rights issues.
- Financial analysts have noted that the share price decline typically accompanying rights issues is due to the offer of shares at prices below market rates to entice existing shareholders, thereby increasing the supply of shares and putting downward pressure on prices.
Nigerian banking stocks have experienced a dismal second quarter thus far. This downtrend follows the Central Bank’s announcement on banking recapitalization, which has set expectations for further declines in share prices.
Investors, particularly those with substantial interests in major Nigerian banks, tell Nairametrics they are bracing for these potential drops. Early trends suggest their expectations of lower share prices is panning out as they gear up for non-dilutive rights issues.
These rights issues are typically the first step in the capital-raising process and could lead to further downward pressure on stock prices they opine.
Banking All Share Index
This trend is currently reflected in the performance of banking stocks. The Banking All Share Index, which tracks some of the most capitalized bank stocks on the Nigerian Exchange, is down 18% quarter-to-date, in stark contrast to the All-Share Index, which has seen a 6% increase over the same period.
- Year-to-date, Nigerian banking stocks have decreased by 6.8%, while the NGX All Share Index has risen by 31.37%.
- This is a significant reversal from the first quarter of the year, during which banking stocks posted a 14.6% return.
- At that time, the narrative was that bank stocks were undervalued both in terms of their earnings multiple and when evaluated in dollars.
- The momentum, however, has slowed recently, largely due to newly announced banking recapitalization plans.
- Nigeria’s Central Bank has mandated an increase in the minimum share capital, requiring international banks to hold N500 billion and nationally licensed banks N250 billion. This directive indicates that the banking sector must raise over N4 trillion (about $2.8 billion) within 18 months.
As a result, investor relations teams at banks are reportedly working overtime to meet these deadlines. But with billions of shares outstanding and freely floating, bank stocks are likely to face downward pressure in the short term as investors anticipate the rights issues.
FUGAZ stocks under pressure
The performance of tier-one bank stocks, which include FBNH, UBA, GTCO, Access Corporation, and Zenith Bank (FUGAZ), points to a bearish streak even as most adjust their prices ahead of dividend announcements.
In a recent Nairametrics report, nearly all the banks dropped below the one trillion market capitalization mark, with GTCO and Zenith barely hanging on. The valuation of FUGAZ bank shares is significantly declining in response to announcements of impending right issues.
- For example, FBNH, whose share price was quoted as high as N43 per share, is now down to N25 per share.
- One investor, who requested anonymity, suggested the stock could fall further to its year low of around N18, achieved on April 24th, if it continues to be oversold based on their technical analysis.
- A market maker with ties to the bank suggested the bank’s planned N300 billion rights issue could be priced at N15.50 per share, pointing to the same price that was mooted when the bank first announced a right issue in 2023.
- Access Corporation, Nigeria’s largest bank by total assets, has already seen its share price fall to N17.4, just N1.4 shy of its own year low of N16 per share. Access Bank also announced plans to raise N365 billion via a rights issue.
- UBA, another tier one bank, has seen its share price drop from a year high of N33.95 to just N20.50. The board also approved a rights issue for the bank. The last time UBA raised capital via a rights issue in 2015, it did so at a share price of N3.50.
- The same trend applies to Zenith Bank and GTCO, which have also seen their share prices fall from year highs of N47.35 and N53 to N34 and N40, respectively.
- They are also shy of their year lows of N31.3 and N32.7. Both GTCO and Zenith have also announced plans for the right issue.
Although all the banks have announced plans to raise capital, the dates and share prices for the capital raises have not yet been announced
What they are saying
Speaking on the issue, the president of the Association of Capital Market Academics of Nigeria (ACMAN) highlighted that a decline in share price often coincides with a rights issue.
President of ACMAN, Professor Uche Uwaleke, said the trend is commonly observed as rights issues are usually extended to existing shareholders at prices lower than prevailing market rates, aiming to incentivize shareholders to subscribe for additional shares.
Consequently, the influx of shares into the market intensifies, particularly when shareholders choose to divest a portion of their holdings, exerting downward pressure on share prices.
“A fall in share price normally accompanies a rights issue. This is because rights issues are typically made to existing shareholders at prices below current market values to serve as incentives to the shareholders to take up additional shares. So, the supply of shares to the market is increased especially when those shareholders opt to sell part of their shares which end up depressing share prices,” he said.
The Managing Director of Arthur Steven Asset Management Limited and former President of the Chartered Institute of Stockbrokers (CIS), Olatunde Amolegbe, noted that a discernible reaction has been evident since last month following the release of the recapitalization timeline by the Central Bank of Nigeria (CBN).
He emphasized that investors consistently exhibit caution regarding dilution stemming from capital-raising endeavours, particularly those entailing equity augmentation.
Amolegbe anticipates that volatility in banking stocks is likely to persist until the completion of the Rights issues.
“We’ve started seeing that reaction since last month when the recapitalization timeline was released by the CBN. Investors are always wary of dilution that typically results from capital raising exercises especially those involving equity raise.
My expectations are that volatility in banking stocks will probably continue until the rights issues are completed”.
The Managing Director of Highcap Securities Limited, Mr. David Adonri, highlighted that the post-rights Issue price dynamics are typically influenced by the prevailing market sentiment.
In a bullish market environment, prices may experience an upward trajectory following such issuances. However, he cautioned that irrespective of market sentiment, an oversupply of stocks resulting from a new issue could lead to a decline in prices.
Adonri noted that the movement of banking stocks after an impending rights issue is subject to considerable uncertainty, owing to the volatile nature of stock market fluctuations.
Outlook for banking stocks
Despite potential headwinds for investors interested in banking stocks, these conditions still provide a unique opportunity for medium-term investments.
- Banks are perhaps uniquely positioned to achieve the highest profits in their history, bolstered by central bank policies that have enhanced their earnings from foreign exchange gains and income from risk-free government securities.
- However, risks still exist in the longer term, with capital raises likely to increase the number of outstanding shares. The more shares a bank has, the greater the pressure on it to deliver strong earnings per outstanding share.
- Banks also face potential challenges as the era of super profits, driven by current central bank forex and monetary policies, gives way to a reliance on income from riskier lending activities.
Investors also have one eye on risk-free government securities which attract interest rates as high as 20% compared to the stocks which are riskier despite being cheap.
• Global fund lauds Nigeria’s anti-money laundering initiatives
The International Monetary Fund (IMF) has explained why the Central Bank of Nigeria (CBN) should issue operating licences or register cryptocurrency dealers.
In its 2024 Staff Report released at the weekend, the IMF recommends that global crypto trading platforms be registered or licensed in Nigeria, like similar operators, the Bureaux De Change (BDCs), which are licensed by the CBN to carry out forex transactions at the retail end of the market.
The IMF advised that such crypto trading platforms should be subjected to the same regulatory requirements applicable to financial intermediaries, following the principle of same activity, same risk, and same regulation.
The CBN had announced that cryptocurrency traders used peer-to-peer trading to manipulate the naira exchange rate against the dollar and other global currencies.
The apex bank asserted in February that Binance, the largest cryptocurrency exchange by trading volume, had processed $26 billion in untraceable transactions in its Nigeria unit alone.
Binance serves 185 million users in over 180 countries worldwide.
To protect the naira from value erosion and reverse the negative impact in the financial system, the CBN subsequently stopped banks and other financial institutions from banking cryptocurrency traders.
Aside several other factors causing naira’s slide, like rising import bills, medical tourism, and tuition fees payment abroad, exchange rate manipulation by cryptocurrency traders remains a major contributory factor.
IMF said: “Rapid growth of transactions on FX trading platforms poses new challenges. At the end of February, the authorities closed the operations of Binance and other crypto-asset trading platforms that were being used by Nigerians to facilitate capital flight – neither the identity of traders nor the origin of their funds could be traced.”
“The authorities also revoked the licences of 4,173 Bureaux De Change (BDCs) that failed to comply with CBN accounting and reporting requirements. Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subjected to the same regulatory requirements applicable to financial intermediaries following the principle of same activity, same risk, and same regulation.”
The IMF lauded Nigeria’s progress in the fight against money laundering and terrorism financing.
It said: “Nigeria has made welcomed progress on improving its Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) framework, but further action is needed in line with Financial Action Task Force (FATF) recommendations. Nigeria has undertaken a series of measures, including legislative reform, conducted a money laundering and terrorism financing risk assessment, built awareness for competent authorities and the private sector, and increased investigation and prosecution of money laundering to correct identified deficiencies in the AML/CFT framework.”
[TheNation]
Directors and key management personnel of Deposit Money Banks borrowed about N549bn from their financial institutions in five years.
This is according to The PUNCH analysis of the banks’ annual reports filed with the Nigerian Exchange Limited between 2019 and 2023.
However, the banks’ loans and advances to some directors and key management personnel as well as related party transactions dropped significantly in 2023.
These transactions dropped to N52.40bn for eight financial institutions compared to N111.31bn in 2022, indicating a 52.92 per cent decline in one year.
Financial institutions reviewed in the 2023 review include Access Holdings, Guaranty Trust Holding Company Plc, Zenith Bank Plc, United Bank for Africa, Fidelity Bank, Wema Bank, Stanbic IBTC Holding Plc and the FCMB Group.
This decline came amid the release of new corporate governance guidelines by the Central Bank of Nigeria which went into effect August 1, 2023.
In the circular dated July 13, 2023, and signed by Director, Financial Policy and Regulation Department, Chibuzo Efobi, the guidelines which imposed responsibilities on the bank board and the executive compliance officers, supersede other previous codes, circulars and related directives, according to the apex bank.
The CBN guidelines on related party transactions said, “Banks shall establish a policy concerning insider trading and related party transactions by directors, senior executives, and employees, as well as publish the policy or a summary of that policy on their website. 22.2 The policy shall contain appropriate standards and procedures to ensure it is effectively implemented. 22.3 In addition to the requirements in Section 22.2, there shall be an internal review mechanism carried out by the internal audit function of the bank, to assess the compliance and effectiveness of the policy.
“22.4 Any director whose facility or that of his/her related interests remains nonperforming in any financial institution for more than one year shall cease to be on the board of the bank and shall be blacklisted from sitting on the board of such bank and that of any other financial institution under the purview of the CBN. 22.5 No director-related loans and/or interest thereon shall be written off without the CBN’s prior approval.”
Leading the pack in terms of major decline in loans to related parties and entities controlled by key management personnel was Fidelity Bank Plc, which went from N92.31bn at the end of December 2022 to N2.09bn at the end of last year.
In footnotes, the bank however said that some of the related parties like A-Z Petroleum Limited, Dangote Group and Genesis Group as of 31 December 2022, had “exited the related party relationship post 2022 financial year in line with CBN requirement.”
In 2022, the total value of insider loans for 10 banks including Access Holdings, Guaranty Trust Holding Company Plc, Zenith Bank Plc, United Bank for Africa, Fidelity Bank, Wema Bank, Stanbic IBTC Holding Plc, FCMB Group, Unity Bank and Sterling Bank amounted to N131.04bn.
Fidelity Bank led the highest for the year, followed by Unity Bank at N17.32bn and UBA at N13.74bn.
In 2021, the loans to related parties of these financial institutions rose to N139.16bn with Fidelity Bank and UBA leading at N97.73bn and N15.28bn, respectively. GTCO trailed in third position with N6.859bn.
Between 2019 and 2020, a total of N226.6bn was disbursed as loans. In 2019, eleven banks borrowed its key management personnel a total sum of N29.65bn. The figure also includes loans to companies related to the directors.
An analysis showed that GTCO lent N155m, Zenith Bank (N1.76bn), UBA borrowed its directors N297m, Wema Bank (N5.2bn), Stanbic IBTC (N95m), FCMB (N4.8bn), Unity Bank(N7.14bn), Sterling Bank (N10.12bn) to related parties.
In 2020, the figure increased by 564 per cent or N167.32bn to N196.97bn.
Checks showed that Access Bank lent the highest with a total of N174bn to its directors and companies related to them. This was followed by Unity Bank with N7.55bn. Third on the list was Sterling Bank with N6.01bn.
Other banks including Fidelity borrowed its directors N986.2m, GTBank (N67.9m), Zenith Bank (N1.797bn), UBA (N206m), Wema Bank (N2.82bn), Stanbic IBTC (N332m), FCMB (N3.2bn), Unity Bank (N7.55bn), Sterling Bank (N6.01bn).
Commenting on the trend, the Chief Research Officer at InvestData Consulting, Ambrose Omordion said “In my language, they say, it is the yam that you know that you use to make pounded yam. If an organisation feels that the insider or director can pay the loans given to them, then there is no issue. It is when they do not pay that is where there would be issues.
“Like what is happening now in the economy, banks are not giving loans to ordinary companies unless those with names because of economic headwinds. If they give loans to the public and they are unable to repay, Non-Performing Loans will rise. If the banks offer to insiders that would pay, it is better for them.”
Adding a word of caution, Omordion said, that when done in excess and without due process, then it is bad.
“It is when it is done in excess that it is wrong. Even banks know how to safeguard depositors’ money, which is the most important thing.
“Now, that it (insider loans) is reducing, that’s a good thing for the industry and it is a good thing for regulators too.”
The Head, Financial Institutions Ratings – Agusto&Co, Ayokunle Olubunmi, pointed out that there was no correlation between insider loans and an increase in banks’ NPLs.
“Although it is not a crime to give a loan to someone within the organisation, there is a rule and it may not be at what we call arms length. Having said that, there is no correlation that when you give an insider a loan, it goes bad. There are some banks with insider loans which have been fully paid. However, the risk is there that they may not have done full diligence. Some banks are more stringent when it comes to insider-related loans.
“Majorly because of the CBN corporate governance, you must disclose the amount, the collateral, and the account’s performance. This is why you will see it in the accounts of banks, so that any analysts, investor will see it and if it is non-performing, then it is a red flag.”
A financial analyst and Chief Responsibility Officer, Peculiar Innovative Consulting, Segun Aremu, lamented the prevalence of the trend in the Nigerian banking sector saying, “Insider loans are prevalent in our Nigerian banking system. It has been happening for a long time. These insider loans display a lack of corporate governance which discourages investors.”
“This situation also leaves banks prone to high NPLs and what I call low profit to the banks. Meanwhile, the banks should improve their financial intermediation role and give loans to the people who need it, the manufacturers and employers of labour to drive the economy,” he said.
From the minority investor community, the overall stance was that if the loans were performing and disclosed, then there were no causes for concern.
Chairman, Ibadan Zone Shareholders Association, Eric Akinduro, speaking with The PUNCH, said, “The point is that, if it is performing, we are okay with it. As long as it is performing and there is disclosure, there is no problem but when these factors are not present, that is where we have issues.
“When a loan is not performing, it will lead to a higher rate of non-performing loans. At the end of the day, it is not just about the shareholders alone. When a loan is not performing, it is to the detriment of that business. And it is of concern to shareholders. Non-performing loans can run the business down.”
The National Coordinator of the Pragmatic Shareholders Association of Nigeria, Bisi Bakare, said, “If they are getting the loans and the loan is performing, that means there won’t be growth in Non-Performing Loans.
She, however, called on the regulators to ensure that insider loans are not written off.
“The regulators need to take the bull by the horns and ensure that these NPLs are not written off,” she charged.
[Punch]
Nigeria’s quest for diversified foreign exchange earnings away from oil not feasible for now as revenue from the manufacturing export sector plunged 166 per cent to N778.4 billion from the N2.1 trillion height reached in 2019.
Operators in the sector blamed poor state of infrastructure, logistics and other binding constraints which they said have worsened the operating environment in recent years.
The trend since 2019 has been downwards recording significant decline to N960.7billion attributed to COVID-19 in 2020, while a minor recovery was recorded in 2021 at N1.15trillion. But in 2022 a huge drop to N781.1billion was recorded and another significant drop to N778.4 billion was recorded in 2023.
Within the same period, the share of manufacturing exports to non-oil exports also dropped to 24.8 per cent in 2023 from 82.4 per cent in 2019.
In its Africa Pulse publication, the World Bank specifically blamed the country’s dwindling foreign trade on poor infrastructure and inefficient logistics, among other factors.
According to the World Bank, the cost of trade in Nigeria and Ethiopia is four to five times higher than what obtains in the United States due to insecurity, higher transportation costs, topography and poor road infrastructure.
“Studies from the Africa region consistently find spatial differences in prices of imported goods (food and non-food) as well as non-traded agricultural staples, indicating that markets are not well-integrated, and retail prices of products are affected by distance.
“For instance, trade costs are four to five times higher in Ethiopia and Nigeria than in the United States, due to poor road infrastructure, low competition in the transportation sector, and topography,” it stated.
The report further noted that the consequences of these distortions include preference of African producers to sell locally rather than export.
In a similar vein, statistics provided by the World Trade Organisation (WTO) revealed that South African manufacturing export value was $46 billion in 2022, which is 15 times higher than that of Nigeria which was $3 billion in the same year.
Manufacturers and operators in the export ecosystem have lamented that the harsh business environment in the country is making local products uncompetitive globally.
They noted that many businesses that are into exports have gone into extinction, even as several multinationals have also exited Nigeria over the past few years.
MAN, exporters seek govt intervention
Giving insights into what is happening in the sector, Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said: “The rising cost of doing business has worsened competitiveness of Nigerian products in the global market, which is evident in the drastic reduction in global demand for these products.
“The reduction in global demand for Nigerian products was further buttressed by the NBS report that confirmed that the manufacturing export value of Nigeria plummeted by 166% from 2019 to 2023.
“In addition, the exorbitant lending rate of over 30 percent has contributed largely to a drop in the share of manufacturing exports to non-oil exports from 82.4 percent to 24.8 percent in 2019 and 2023 respectively.”
Speaking to the development, Chairperson of the Export Group of MAN (MANEG), Odiri Erewa-Meggison, stated: “Indeed, it’s concerning to see exporters not doing as well as they could.
“As you must appreciate, the cost of doing business in Nigeria has increased by more than 300 percent. Just take a cue from the recently increased electricity tariffs.
“How can exporters compete on a global scale without a deliberate intervention from the government? All hands need to be on deck.
“Exporters need deliberate interventions such as access to loans at right rates, support with eliminating administrative bottlenecks and multiple regulatory checks by different regulators. A consolidated or harmonized regulatory approach would be preferred.
“Higher costs in electricity make it more difficult to produce. Biggest elephant in the room is the incentives which need reviewing and streamlining to ensure qualifying exporters take benefit without having to compromise by settling anyone to get their incentive like Export Expansion Grant (EEG).
“There is an urgent need for a stakeholders’ engagement between government and exporters to discuss and agree on a way forward.
“If exporters are to commit to repatriating their full export proceeds back to Nigeria, there are certain things exporters will like the government to equally commit to. For example, there is a need to review the items on the exports proceeds list in the CBN foreign exchange manual to ascertain and ensure the list is still relevant and updated to suit current needs.”
Also reacting, Chairperson of the Export Group of Lagos Chamber of Commerce and Industry (LCCI), Mrs. Bosun Solarin, said: “In 2020, the then Vice President through the office of the Presidential Enabling Business Environment Council (PEBEC) tried to help small businesses by slicing the cost of production, like NAFDAC registration. “So from 2020, many small businesses emerged into production, and some of them have entered the export market.
“Many of such businesses have gone into extinction because of various policies that are anti-business.
“When people have even found a way to come into business through export, they are confronted with so many bottlenecks, bad policies and insecurity.
“If we don’t pay attention to security so that people can go back to the farm, if we don’t pay attention to interest rate so that the productive sector can get money to do business, if we don’t pay attention to logistics so that people can even move their products with ease, then we have not started.
“Nigeria is signing off for the guided trade of African Continental Free Trade Area (AfCFTA) very soon, and logistics is a problem to even move things.
“These, I think are places where the government should pay attention.”
Exporters must adhere to trade norms – NEPC
Meanwhile, the Nigerian Export Promotion Council (NEPC) has charged Nigerian exporters to adhere to the requirements for exporting products to different countries.
Speaking at a recent sensitisation workshop aimed at enhancing Nigeria’s export potential and strengthening trade relations with China, Mrs Nonye Ayeni, Executive Director of NEPC, emphasised the need for exporters to adhere to the General Administration of Chinese Customs (GACC).
Ayeni, who was represented by Mr Samson Idowu, North-Central Coordinator of the council, said that GACC has clear but stringent requirements for exporting products to China.
“Understanding the registration process, documentation and regulatory changes is paramount for successful export. Understanding the requirements set forth by GACC is crucial for Nigerian exporters to ensure smooth and successful trade with China,” she stated.
National Single Window will bring relief – CPPE
In his comment, CEO, Centre for the Promotion of Private enterprise (CPPE), Dr Muda Yusuf, said the implementation of the National Single Window (NSW) initiative will go a long way in enhancing Nigeria’s foreign trade.
Yusuf stated: “When you have a process that is highly bureaucratic, it gives people the opportunity for physical interaction that also gives room for discretion, which is a fertile ground for corruption, extortions, delays and inefficiencies which are also affecting the cost of goods and services.
“The impact on business will be significant. No matter what sector you talk about, what happens in the import/export sector impacts the sector, directly or indirectly.
Whether you are in manufacturing, mining, or whatever, as long as you import or export goods. And if you talk to those who clear these goods, they will tell you the kind of experience they go through.
“So, first, there will be an impact in terms of the efficiency because when you bring technology into a space, the value proposition is the efficiency that it brings. And efficiency reduces cost of operation, it reduces the time it takes to conduct the business”.
Nigeria loses $4bn to import-export infractions annually – Tinubu
At the recent launching of the NSW project in Abuja, President Bola Tinubu stated that Nigeria currently loses about $4 billion annually to import-export infractions due to bureaucratic bottlenecks, especially at the ports.
According to the president, the NSW project is expected to ensure 24-hour clearance of goods at the ports and simplify trade by providing a digital platform for all import and export-related activities.
Tinubu said: “This initiative will link our ports, government agencies, and key stakeholders, creating a seamless and efficient system that will facilitate trade like never before. It will reduce the need to deal with multiple agencies in multiple locations to obtain the necessary papers, permits and clearances to complete their import or export processes”.
[Vanguard]
Here are the seven top business stories you need to track this week — May 13 to May 17.
APRIL INFLATION
The Nigerian Bureau of Statistics (NBS) is expected to release the consumer price index (CPI) and inflation report for April 2024.
In March, Nigeria’s inflation rate rose to 33.20 percent — from 31.70 percent in February.
The bureau also intends to publish reports on liquefied petroleum gas (cooking gas) and premium motor spirit (petrol) for April 2024.
CBN DIRECTS BANKS TO CHARGE 0.5% CYBERSECURITY LEVY ON ELECTRONIC TRANSACTIONS
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to implement a 0.5 percent cybersecurity levy on electronic transfers.
The directive was issued to commercial, merchant, non-interest and payment service banks, as well as mobile money operators.
The CBN said the policy would take effect in two weeks and charges would be described as ‘Cybersecurity Levy’.
‘95% OF INFORMAL SECTOR SHOULD BE EXEMPTED FROM TAXES’
Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says the federal government is working on a system that will provide tax relief to 95 percent of the informal sector.
Oyedele spoke at the closing session of the committee in Abuja on May 12.
Oyedele said the plan is to exempt businesses earning N25 million a year or less, from the various taxes hindering their progress over time.
‘’So, we think that 95 percent of the informal sector should be legally exempted from all taxes; withholding tax, company income tax, even payee on their staff,” he said.
NIGERIANS TO PAY FOR MULTIPURPOSE NATIONAL ID CARD
The National Identity Management Commission (NIMC) says Nigerians will have to pay to get the new multipurpose national identity card.
Abisoye Coker-Odusote, director-general of NIMC, made this known at a press conference in Abuja on May 10.
She said applicants for the card will have to request with their NIN through a self-service online portal or the banks.
NIMC boss added that applicants will have to pay through the banks to acquire the card.
Coker-Odusote also said as at May 10, 107,338,004 Nigerians have enrolled for the national identification number (NIN) database.
She said the number increased by over three million compared to the 104.16 million data recorded in December 2023.
STATES SEEK SUSPENSION OF FOREIGN DEBT DUE TO FX ISSUES
Ekiti, Cross River, and Ogun states have proposed the suspension of their foreign debt repayments.
The proposal comes amid a severe foreign exchange (FX) volatility, which state officials claim has significantly hampered their ability to service existing debts.
According to minutes obtained by TheCable from the March 2024 meeting of the federal account allocation committee (FAAC), representatives from these states raised concerns about the rising cost of foreign loan repayments due to the weakening naira.
They said the cost of foreign debt servicing has drastically reduced their share of the federation account — a pool of funds distributed to states from the federal government revenue.
CBN REVIEWS REPATRIATION OF EXPORT PROCEEDS BY IOCs
The CBN has also reviewed its directive on the repatriation of export proceeds by international oil companies (IOCs).
In a circular on May 6, CBN said IOCs can repatriate 50 percent of their export proceeds immediately or when required, while the remaining 50 percent can be used to settle financial obligations in Nigeria.
The regulator said the transfer of funds by the IOCs has an impact on liquidity in the domestic FX market.
The financial regulator directed banks to only transfer 50 percent of repatriated export proceeds, on behalf of the IOCs, to their parent companies’ offshore accounts — with the remaining 50 percent repatriated after 90 days.
CAC SETS DEADLINE FOR POS TO REGISTER
The Corporate Affairs Commission (CAC) and financial technology companies (fintechs) have agreed to a two-month timeline to register their merchants, and agent bankers — better known as POS operators.
The commission, issuing a deadline of July 7, said the registration aligns with legal requirements and the directives of the Central Bank of Nigeria (CBN).
The agreement was reached when Hussaini Magaji, registrar-general of the CAC, met with some fintech companies in Abuja on May 6.
The meeting had the representatives of Opay, Monba, PalmPay Ltd, PayStack, FairMoney MFB, Monipoint, and Teasy Pay.
On May 8, the corporation launched a centre for the “bulk registration” of point of sale (POS) operators.
[TheCable]
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FORMER President Olusegun Obasanjo, yesterday, disclosed that the infrastructure drive embarked upon by Governor Ademola Adeleke of Osun State would attract investment into the state.
He also charged the governor to sustain the peace and tranquility existing in the state, saying Osun remains one of the most peaceful states in the country.
Speaking at the commissioning of the Government House VIP Lodge in Osogbo, the former President urged the governor not to mind those castigating him for dancing but should combine his dancing skills with provision of infrastructure like he is doing presently in the state.
He said: “Some people once despise you that you are a dancer but I said only happy people dance, you are my dancing partner.
“What I have heard and saw three days ago that I have been here, if anyone still doubts the fact that you are working, bring the person to come and see Osun himself.
“Make sure you prioritise your developmental projects in line with the peoples’ desire, such priorities would attract investment thereby enhancing growth and development of the state.
“Our people have desire to work and invest, they need an enabling environment once you do that, there would be job opportunities for the teeming youth population in the state.”
Earlier, Governor Adeleke had disclosed that his drive to complete the project which was initiated by the previous administration was borne out of the desire to ensure that the state get value for every of its money invested.
“I am of the firm belief that we should never politicise public infrastructure. Political affiliation should never drive what project is completed or abandoned. This project was started by an APC government, abandoned by an APC government but now completed by a PDP government. We are setting the standard for best practice.
“We are conscious of what impact projects like this make on cost of governance. In an era of clamour for reduction in cost of running government, we seek to reduce cost of hosting important personalities who are visiting the State. With this structure completed, we have achieved a major milestone in cost efficiency.”
The Nigerian music industry was recently unsettled by a series of beefs, with Afrobeats artistes of all categories throwing jibes at one another.
The beefs, which have been budding for a while, reached their zenith at a time when the infamous Drake and Kendrick Lamar rap beef was raging on the other side of the Atlantic.
DAILY POST takes a look at some of the popular beefs threatening the Nigerian music industry.
Wizkid vs Davido
Wizkid and Davido, touted as Nigeria’s biggest music stars, have had a strained relationship since their early days as rising artists in 2011.
Although they have never revealed the cause of the beef, the feud has been on and off for over a decade.
While the duo has had some moments of peace over the years due to reconciliatory efforts, there has always been a chill between their cult-like fanbases, “Wizkid FC” and “30BG”, especially on social media.
The latest chapter in their saga started when many thought that they were finally ending their age-long supremacy rift, especially with Wizkid’s announcement that he would be going on a joint tour with Davido after his ‘More Love, Less Ego’ tour.
But all that hope was dashed when they reignited their long-standing feud with a fiery social media exchange on the night of April 29.
Wizkid had earlier posted a leaked video of someone, purported to be Davido, on his knees, crying and begging for a woman’s attention.
The Starboy boss posted the video implying that his fans needed to plead for a new song with a similar intensity to the person in the video, who appears to be Davido.
The post sparked controversy on social media, causing a stir among the 30 Billion gang, Wizkid FC, and also Davido who responded later in the night.
In his clapback, Davido taunted Wizkid that his career was resurrected a few years ago but died again. He boasted that since he entered the music industry, Wizkid and others have not experienced peace of mind.
“That’s what I thought. Nothing to say, exactly why I stopped wasting my clout and jeopardizing my millions of USD of endorsements on someone whose career was resurrected a few years ago just to die again,” the ‘OBO’ crooner said.
Responding to Davido, Wizkid boasted that even if he decides to retire from the music industry now, the DMW boss will still not be on his level.
He said, “I got nun to say to u my boy! I can retire today and you still not on my level. You be influencer with a songwriter. Wish u well.”
The social media war continued with Wizkid reposting the controversial leaked video the following day and Davido throwing jibes at him both on X and Instagram for days.
Kizz Daniel vs Tekno
The friction between Kizz Daniel and Tekno happened simultaneously with Wizkid and Davido’s social media war.
In the afternoon of April 29, Kizz Daniel dug up a tweet wherein Tekno insinuated that the Fly Boi boss’ money isn’t on the same level as his, while debunking a report that he received royalties worth N1 billion from their collaborative song ‘Buga.’
Kizz Daniel blasted Tekno for being ungrateful, claiming that he “rescued” his (Tekno’s) dying career with the song.
He said, “Dem mention money you sef dey talk… spewing sh*t like an*s. See ekuke wey we rescue with Buga. Oloribu omo ale.”
In his reaction, Tekno warned Kizz Daniel not to provoke him, else, he would feel his wrath.
“Hope you are trending now fool! Careful o, breeze blow foul ny*sh dey open. I’m not the one to be played with before I Kattywilliams your *ss. Insecure narcissist,” the ‘Pana’ crooner said.
The singers later unfollowed each other on social media.
Adekunle Gold vs Samklef
Singer Adekunle Gold and producer Samklef recently fell out after the producer-turned-blogger called out his wife, Simi, for being “ungrateful.”
Samklef, who had publicly admitted having feelings for Simi during their days as struggling artistes, vowed never to “fully” forgive if she doesn’t publicly apologize for setting him up for dragging.
He said, “If simi comes out publicly and apologizes for setting me up for dragging I will fully forgive her. But if she doesn’t I will be reminding her who she truly is for the next 7 billion years.”
Reacting, Adekunle Gold categorically told Samklef that his wife doesn’t owe him anything.
“When will it be your turn to receive sense from your 7th heaven? Because you are clearly lost in your own damn mind. Simi doesn’t owe you sh*t and it’s about time you stopped calling her name every 3 market days. If anything, you owe me! Stop fooling around and act your age!,” Gold fumed.
Samklef rebuffed, “Dear Adekunle, I made your wife Simi.
“And yes Adekunle your wife Simi owes Samklef a public apology for setting me up for dragging. How u see am?
“And just so u know Simi music career not fit pass the level again. I samklef says o!
“Wey u for just dey one conner dey look or reach out to me for old time sake…You wan use me shine with all this small temporary fame. Say he wife owes me nothing. I beg una for money Abi wetin you mean ? Can you imagine this small boy?”
Meanwhile, Simi has addressed her colleague, Brymo, and producer-turned-blogger, Samklef’s flirtatious comments about her.
Recall that Brymo sparked controversy last year after admitting that he demanded sex from Simi while she was unmarried before he could make music with her.
He said she rejected his request and he in turn declined to collaborate with her.
In a recent interview with Angela Yee, Simi said there was no point in what Brymo and Samklef said about her, emphasizing that she couldn’t take them seriously.
The mother of one said she is confused about their rhetoric and considers their actions as “comedy.”
She said, “I don’t know what these people [Brymo and Samklef] are going on about. The funny thing is that these are two different people and I don’t know why they keep talking about me like that. When you even look at what they’re saying, you can’t even pick out anything. I’m still confused.”
Wizkid vs Don Jazzy
Wizkid’s recent social media onslaught did not spare Mavin Records boss, Don Jazzy.
Wizkid fired shots at Don Jazzy after his signee, rapper Ladipoe mocked the Grammy-winning singer for claiming that ‘hip hop is dead’.
On his X handle, Ladipoe wrote, “Nigerian rappers that survived ‘hip hop is dead’ watching Afrobeat artistes go through their own.”
After a fan alerted Wizkid to the post, he reacted by saying, “Lol, never chatting with anyone signed to an influencer. Next.”
He also retweeted two tweets suggesting that he referred to Don Jazzy as an influencer.
Don Jazzy, displeased by Wizkid’s remark, unfollowed him on Instagram.
Wizkid’s subtle shade at Don Jazzy sparked reactions from a cross-section of Nigerian celebrities, including skit makers, Mr Macaroni and Nasboi, and reality stars, Doyin and Tacha.
Reacting via his X handle, Mr Macaroni insisted that while Don Jazzy is influential across music, contents, films, and brands, the context in which Wizkid called him “an influencer” was disrespectful to “everything he has done and is still doing for the Nigerian Music Industry.”
He noted that Don Jazzy is an “absolute legend” who is selfless and has shown support to many entertainers in the country regardless of their status.
Similarly, content creator and singer, Nasboi faulted Wizkid for shading Don Jazzy.
“Wizkid was wrong for talking to Don Jazzy that way. Before now, Wizkid used to respect Don Jazzy,” he stated on the Bahd And Boujee Podcast, co-hosted by reality star, Tolanibaj and actress, Moet Abebe.
Appearing on Cool FM’s Big Friday Show With Tacha, Nasboi revealed that he has been receiving death threats following his criticism of Wizkid for shading Don Jazzy, but maintained that he still stands on his initial stance that the Starboy boss was wrong for shading the Mavin honcho.
“I feel like the context [in which Wizkid called Don Jazzy an influencer] wasn’t okay,” he reiterated.
The Edo Police Command has arrested Musa Suleman, for engaging his three-year-old daughter, Sarah Suleman, who is a kid model, in adult content on social media at the Auchi area of the state.
This was disclosed in a statement released by the spokesperson for the state command,Chidi Nwabuzor, on Sunday.
PUNCH Metro learnt that Suleman posted indecent pictures of the minor on her recently deactivated Instagram page, @officialsarah_ig, exposing sensitive parts of her body, as she posed erotically.
Some of the viral videos had generated concerns from Nigerians, who called for Suleman’s arrest because his daughter was not safe in his custody, as they feared that she might be involved in pornographic activities or sexually abused for monetary gains.
When our correspondent observed Sarah’s Instagram page, it contained posts that promoted nudity and immorality because she engaged in adult activities like attending clubs, photo/video sessions with a bikini, seductive dance, and others.
He also stated that a Malaysian influencer and an adult movie actress, Siew Pui Yi, known as Ms Puiyi, was his daughter’s mentor, as he specified in every post made on her page.
In a post Suleman made on his daughter’s page on December 30, 2023, he uploaded a provocative picture of his daughter with two yet-to-be-identified grown men, accompanied with a disturbing caption, which read, “Hanging out with men; the kids stay at home. Yoo!.”
In an earlier statement, Suleman had clarified that the reason behind his actions was because he was not getting support from social media users towards his passion, so he decided to “promote” his child’s modelling career.
He said, “One Nigeria, we cannot do comedy because no helper, this is what we can do. Help promote a model.”
The Edo police spokesperson, Nwabuzor, noted that the command took swift action by enforcing the arrest of Suleman after he was exposed, and an investigation was ongoing to make sure justice was served.
“The Edo State Police Command is aware of the trending video of a child of about four-year-old conspicuously naked and used as adult content in an undisclosed hotel in Auchi, Edo State.
“The Commissioner of Police Edo State Command, CP Funsho Adegboye, immediately drafted a tactical team to go out and arrest the suspect and his cohort. Within 12 hours, the father of the girl was arrested, and the investigation has commenced while further revelation will be made known to the public.
“The CP therefore appealed to the good citizens of Nigeria to remain calm that justice will be served,” Nwabuzor said.
…Says Edo ranks second in terms of conviction after Lagos
THE Economic and Financial Crimes Commission, EFCC, has revealed that underage boys, who are into internet fraud popularly called ‘Yahoo Yahoo’ do age declaration to enable them to open bank accounts and get driver’s licences to expend their proceeds from the crimes, as it vowed to go after government agencies and individuals that issue the papers for the fraudulent declarations.
The Zonal Director of the EFCC in charge of Edo, Delta and Ondo states, Effa Okim, stated this in Benin City, while on a courtesy visit to the Edo State Council of the Nigeria Union of Journalists, NUJ, led by Festus Alenkhe.
He also disclosed that Edo State was second to Lagos in terms of convictions despite the small size of the state.
Okim said parents who normally claim that their children were underage when convicted would also go in for it for their complicity in the forgery of documents.
He said: “Crime, what we call yahoo yahoo is visible in our streets. When you walk on our streets, when you visit our hotels per second, you see these boys and it is so visible that it is disturbing and in addition to being visible, the statistics that we have is that Edo is after Lagos in terms of conviction.
“It calls for concern because in terms of size, Edo is not big but look at the slant on the level of convictions, it is not a good reputation and for me. Edo is too great in Nigerian history to be reduced to that level in terms of criminality.
“When you hear that a 12-year-old boy has been sent to jail, that in law he is not supposed to go jail because he is underage but it happens here often because they go and agree with some authorities and do age declaration stating that they are 18 just to enable them to open an account and put their criminal structures in place and at the end, when they are arrested, their father will come to say their children are underage.
“We are asking them where were you when he got his driver’s licence, where were you when your underage son opened an account because in the Nigerian law, an underage cannot open an account? Where were you when your son was irresponsibly spending money?”
He said the commission in line with its mandate and vision was ready to partner with the media “to reduce the visibility of crime on our streets.”
On his part, Alenkhe urged the new zonal director to maintain an open-door policy to always make information available to journalists.