The House of Representatives has launched a probe into some officials of Federal Government Ministries, Departments, and Agencies involved in alleged certificate racketeering with Nigerian students.

Rep. Abubakar Fulata, Chairman, Joint Committee on Certificate Racketeering, vowed to confront such a menace in tertiary institutions during its sitting in Abuja.

He said certificate racketeering could cripple healthcare system and various sectors of the economy if allowed to go unchecked.

Fulata said the House mandated its Committees on University Education, Interior Foreign Affairs, and Youth Development to investigate the matter and report back.

“This has been a burning issue in both public and private institutions where there are seemingly less observance of rules, regulations, processes, quality assurance, among others''.

He said there was a need to get to the root of the illicit act and proffer solutions while appealing to MDAs and relevant stakeholders to cooperate with the committee to achieve the desired result.

NAN reports that a Nigerian reporter, Umar Audu, had, in December 2022, bagged a degree from a university in Cotonou, Benin Republic, in six weeks and subsequently participated in the mandatory National Youth Service Corps scheme.

Audu subsequently accused unnamed officials of the Ministry of Education as members of the racketeering syndicate; a development that elicited widespread criticism by well-meaning Nigerians.

Leading the debate on the motion, Fulata called on the House to “identify officials of MDAs and students who benefited from such institutions and their campuses in the last ten years.

(NAN)

The further tightening of the Monetary Interest Rate to tame elevated inflation by the Central Bank of Nigeria (CBN) may create more hurdles for the manufacturing sector and other debtors of commercial banks with a possible consequential negative growth rate effect on the economy.

Rising from its 294th meeting of the Monetary Policy Committee (MPC) on Tuesday, the central bank announced an increment in interest rate benchmark by 200 basis points to 24.75 percent from 22.75 in a continued chase to tame Nigeria’s stagflation that has seen food inflation rise to 37.92 percent in February 2024.

The decision by the MPC to increase the MPR by 200 bps makes it a total of 600 bps in just one month if one adds the 400 bps delivered in February.

The high cost of funds presents a significant challenge to businesses and the economy. For businesses, it translates to increased borrowing expenses, which can strain their financial resources and hinder investment in expansion, innovation, and hiring.

Small and medium-sized enterprises (SMEs), in particular, face heightened difficulty accessing affordable financing, limiting their growth potential.

The MPC also adjusted the asymmetric corridor around the MPR to +100/-300 basis points, while retaining the Cash Reserve Ratio of Deposit Money Banks at 45 percent. It also adjusted the Cash Reserve Ratio of Merchant Banks from 10.0 per cent to 14 per cent, and retained the Liquidity Ratio at 30 per cent.

Governor of the central bank Olayemi Cardoso who announced the decisions of the MPC meeting yesterday in Abuja said the “considerations underscore the importance of the CBN’s commitment to the price stability mandate and the need to urgently bring inflation under control to ensure that the purchasing power of ordinary Nigerians is restored in the short to medium term.”

However, he said he doesn’t expect the tightening rates to be long-drawn.

The CBN governor also disclosed that his office refused to validate the outstanding $2.4 billion Forex forward transactions because they were ineligible for forex allocation.

Cardoso made the remark on Wednesday in reaction to airline operators who said they lied in their claim of settling all FX backlog to its members.

Cardoso said the central bank relied on the report by Deloitte Consultants to refuse approval for the applications. Deloitte Consultants had produced an audit report that revealed that most of the transactions did not qualify for payment.

“In some cases, some allocations were made without being requested. You also had some where they had no naira and they allocated foreign exchange. It was for that reason that we refused to validate those particular transactions. Because, apart from the fact that documentation was not satisfactory, many cases were outright illegal,” the CBN governor said, while responding to questions from journalists at the end of this month’s meeting of the MPC of the bank.

He said law enforcement agencies are now looking into the transactions that are not valid to be paid.

However, he said if there is any information to the contrary, the CBN management would reconsider its stand in due course.

“Other transactions have been settled. And as of today, the valid transactions – as far as the Central Bank of Nigeria is concerned – have been taken care of. We are also not unmindful of the fact that there may be some stakeholders who over some time may have had a backlog in one form or the other,” he stated.

Cardoso said his administration has done what it could to make the FX market as transparent and liquid as possible.

In reaction to the outcome of the MPC meeting, economic experts said much as tightening is necessary at this time because of the elevated inflation, MPC should tighten policy incrementally and in a measured manner that optimises the CBN’s policy tool kit without undue reliance on the monetary policy rate. 

Professor of capital market and former commissioner of finance in Imo State, Uche Uwaleke, said the development is now driving undue pressure by banks on the CBN’s Standing Lending Facility and increasing cost of funds generally.

“The CBN should recognise that the challenge currently facing the Nigerian economy is not just inflation but stagflation, and to this end should equally have regard to growth concerns in future meetings of the MPC,” he stated.

Rate Hike To Limit Banks’ Lending To Businesses —- Experts

Analysts have expressed concern that the latest hike in benchmark interest rate will see deterioration of the lending books of banks and would also have a negative impact on growth in the country.

According to analysts, the MPC is trading growth for stability with its latest moves.

In line with the expectations of analysts, the MPC had for the second consecutive time this year raised the benchmark interest rate from 18.75 per cent to 22.75 per cent, and now 24.75 per cent.

Commenting on the latest hike, managing director and chief executive of Arthur Steven Asset Management Limited, Mr Olatunde Amolegbe, noted that he had expected the committee to continue with its hawkish stance.

According to him, the MPC is reading effectiveness to its massive rate movement of last month, given that the naira had begun to strengthen and this is expected to slow the rate of growth in inflation rate in subsequent months.

“I suspect that is why they kept applying the same measures this month albeit at a relatively less hawkish level. The rate increase will, of course, continue to attract foreign portfolio investors (FPIs) at a high rate as we have seen in recent weeks, which will continue to boost supply to the forex market and ensure price stability.

“It is also possible that local investors move towards fixed income instruments rather than speculating in the forex market which could reduce inordinate demand and strengthen the Naira further,” he said.

He, however, noted that ‘the flip is that finance cost increases sharply for industries with negative impact on production, unemployment and economic growth.”

Meanwhile, Amolegbe whilst stating that the CBN is trading growth for stability at this point, said, “The point at which this needs to be reversed is anybody’s guess. As costs such as interest rates rise, the probability of default or non-performance loans (NPLs) also tends to rise. “This, also coupled with rising inflation and lower consumer purchasing power, might mean higher NPL levels in the books of banks.”

This was also the view of the chief executive of the Centre for Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, who stressed that the hike would mean a higher cost of credit to the real sector.

He said, “The new dramatic increase in MPR means that the cost of credit to the few private sectors that have exposure to bank credits will increase, which will impact their operating costs, prices of their products and profit margins, amidst very challenging operating conditions.”

Noting that in the Nigerian context, price levels are not interest sensitive, Yusuf said supply side issues are much more profound drivers of inflation.

According to him, the hike would further pose a risk to the financial intermediation role of financial institutions in the country.

“The increase would constrain the capacity of banks to support economic growth and investment, especially in the real sector of the economy because the increases are quite significant.

“Already, bank lending has been constrained by the high CRR, with many operators in the sector claiming that effective CRR is as high as 50 per cent for many banks. The Nigerian banks are yet to live up to their financial intermediation role because of these constraining factors,” he concluded.

Legal Luminary, Femi Falana has called for the advertisement of the office of the Independent National Electoral Commission (INEC) chairman and that of the Residents Electoral Commissioners (RECs) for the sake of transparency and credibility in the system.

Falana suggested that after eligible persons apply for the office of the INEC chairman and the RECs, the National Assembly would conduct a thorough screening of the three best candidates before one of them should be announced.

The senior advocate, who is part of a movement for the Electoral and Judicial Reforms that emerged after the Haske Satumari Foundation Annual Colloquium, insisted that if a credible person emerges as INEC chairman through an open process, it will go a long way in the nation’s election credibility.

“In appointing INEC chairman and Residents Electoral Commissioners, the position should be advertised.

“The best three names should be sent to the Senate for screening before announcement,” Falana said.

Falana who said their interest is to ensure that Nigeria gets the best when it comes to election, urged the country to ensure that the Justice Uwais panel report on election should be fully adopted.

“We must go back to the Uwais panel report,” Falana said.

Speaking, the founder of Haske Satumari Foundation, Hon Kudla Satumari, said they are working to ensure that both the electoral act and the constitution provided for full transmission of election results electronically.

“We want electronic transmission of election results to be fully adopted,” Kudla said, adding that the non-transmission of election results electronically has denied many people victory.

Speaking on why many lose in court, Kudla said their movement is suggesting that once grounds of an appeal are clear and acceptable, the onus of proof should be shifted to the acclaimed winner.

“While dealing with the principles of evidence, some people only look at the technicalities. So, once you are able to prove your case in the petition, the onus of proof should be shifted to the acclaimed winner,” Kudla said.

On the issue of immunity, Kudla said it should be removed in all political offices adding that their movement is also working on how the constitution and the electoral act would be amended to ensure that only the number of people that voted for a lawmaker is required for a recall process.

“If you are recalling a member, it should be a similar percentage that voted for the person. A simple majority that elected the member should be enough for the recall of the member,” Kudla said while disclosing areas they will be pushing for amendment in the electoral act and the constitution amendment.

Transfer speculations swirling around Nigeria International striker Victor Osimhen has yet assumed another dimension after each of the trio, Arsenal, Chelsea and PSG, are reportedly ready to table a staggering €90m (about N138,974,356,080.00) for the Napoli star striker.

Several Italian outlets claim Napoli President, Aurelio De Laurentiis, could accept a bid below the striker’s release clause, said to be around £113 million ($143m) when the Nigerian ace signed a one-year extension last December.

But citing a report in Il Mattino newspaper, Football Italia has reported that Napoli are prepared to part company with Osimhen at the end of the season with Chelsea, Arsenal and PSG each ready to offer €90m for the Nigeria international.

According to the report, Osimhen is ‘fed up’ with Serie A and is looking forward to leaving the Stadio Maradona.

Intermediaries are already working with the striker’s agent, Roberto Calenda, to find a new club for the ex-Lille striker, who has scored 72 goals in 125 appearances with the Partenopei since 2020.

The 25-year-old recently signed a contract extension until June 2026 and the new deal includes a release clause of €120-130m.

However, Il Mattino claim De Laurentiis could accept an offer below the release clause, given that Osimhen has already decided to leave the club with words rife that his next destination is Chelsea.

In fact, Italian journalist Rudy Galetti was quoted as saying that Osimhen has agreed to personal terms with Chelsea, signalling a potential move to the London club in the upcoming summer transfer window.

Galetti, via his X account (formerly Twitter), disclosed that Chelsea are prepared to activate Osimhen’s release clause once the 2023/24 season ends.

”Victor Osimhen is always a main target for Chelsea to strengthen their attack,” Galetti said.

The naira yesterday appreciated to N1,350 per dollar in the parallel market from N1,430 per dollar on Monday.

Similarly, the naira yesterday appreciated to N1,382.95 per dollar in the Nigerian Foreign Exchange Market (NAFEM). Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,382.95 per dollar from N1,408.04 per dollar on Monday, indicating N25.09 appreciation for the naira.

Consequently, the margin between the parallel market rate and NAFEM widened to N32.95 per dollar from N21.96 per dollar on Monday.

Over the past month, the Nigerian naira has surged by 18.28 percent to reach N1,408.04 on Monday, up from its low of N1,665.50 recorded on February 23, 2024, as per data compiled from the FMDQ Securities Exchange.

The recent appreciation of the naira against the dollar can be attributed to foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

Key reforms include the consolidation of exchange rate windows, liberalization of the FX market, resolution of FX backlog obligations for banks and airlines, implementation of a Price Verification System (PVS), imposition of limits on banks’ Net Open Position, removal of the daily cap on remunerable Standing Deposit Facility (SDF) to N2 billion, and restructuring of the Bureau De Change (BDC) segment.

The additional measures implemented are aimed at promoting a market where both the buyer and seller are willing participants. These measures include the removal of margin limits for International Money Transfer Operator (IMTO) remittances, the introduction of a two-way quote system, and comprehensive reforms within the BDC segment to bolster stability, transparency, supply, and price discovery in the Nigeria Autonomous Foreign Exchange Market.

The Central Bank of Nigeria (CBN) sold dollars to Bureau De Change (BDC) Operators at a rate of N1,251.

In a circular issued by the CBN, the BDCs were directed to sell to eligible customers at a rate that does not exceed 1.5 percent above the purchase price.

The Nigerian Financial Intelligence Unit has uncovered 27 cells belonging to the Indigenous Peoples of Biafra in 22 countries across the globe, including the United State of America and the United Kingdom of Great Britain and Northern Ireland.

The NFIU said the US and the UK house the largest numbers of these IPOB cells per country, with seven and six operating IPOB cells respectively in both countries.

Details of the development were revealed in a newsletter exposing the funding of terror activities in Nigeria by IPOB, bandits, and other terror groups through global crowdfunding and on sports betting platforms.

The Federal Government had in 2017 proscribed IPOB and designated the self-determination group a terrorist organisation. Its leader, Nnmadi Kanu, is currently being tried on terrorism charges by the government.

The NFIU, in the document, titled “Counter Terrorism Financial Newsletter,” linked the running of IPOB to 54 individuals across the globe.

The document revealed: “The NFIU confirmed that the diaspora affiliates of the IPOB group have spread over 22 countries across the globe. Further analysis exposed 27 entities across the globe registered in the name of the group, the US and the UK had the highest number of registrations, having seven and six registered entities, respectively.

“The analysis further indicates that the group has several bank accounts in different countries where funds are being received from various contributors with the narrations ‘Monthly Dues, Services and for ESN’, among others, then later disbursed for various operations.

“It was confirmed that one of the major sources of revenue for the group is crowdfunding by several individuals abroad, mostly Nigerians.

“It was observed that over $160,000 was disbursed to Transmission, Media, and Broadcasting companies in Bulgaria, South Africa, and the United Kingdom. The analysis profiled the leader of the group, his addresses, and mobile numbers abroad with other 53 individuals associated with the dissident group. The report was forwarded to Law Enforcement for further investigation.”

The NFIU further revealed that a betting platform, simply identified as ‘XC’, filed a Suspicious Transaction Report on a 24-year Nigerian customer from North-Central, Nigeria.

“This 24-year-old from Nigeria’s North-Central region received over N350,000 in his betting wallet, believed to be ransom money from a kidnapping,” the NFIU said.

In another case, the financial intelligence unit exposed a terrorist attempting to evade being detected. It noted that the individual made structured cash withdrawals from different Automated Teller Machines and purchased flight tickets to high-risk areas, using credit cards.

The NFIU explained that whenever the individual exceeded his withdrawal limit, he would adopt alternative methods of travel.

“The terrorist then attempted suspicious transfers exceeding €1,000 to a local charity with potential links to terrorism. These transactions, along with others for luxury goods and escort services, raised red flags,” the newsletter stated.

The NFIU urged law enforcement agencies to investigate transactions by individuals linked to known terrorists or financiers; unauthorised tax collection or forced donations in terrorism-prone areas and Bureau de Change operators facilitating transfers within suspected networks.

Other areas the unit wants security agencies to beam their searchlights are multiple cash deposits in bank accounts; Point of Sale operators receiving large deposits followed by cash withdrawals; money transfers from Nigeria to high-risk countries; recruitment of individuals to open multiple bank accounts; and financial transfers to charities linked to terrorism.

Controversial Islamic scholar, Sheikh Ahmad Gumi, has said there was “no cause for alarm” after he was invited by the security agents on Monday over the nation’s insecurity, especially banditry in the North.

The Kaduna-based cleric said he had a fruitful discussion with Nigerian security agents who invited him over security issues.

Recall that the Minister of Information and National Orientation, Mohammed Idris, had on Monday told reporters at the State House, Abuja, that Gumi had been invited by the security agencies.

Reacting to the invitation, Gumi issued a statement on his Facebook page that there was no animosity in the meeting with the security agents, but respect.

“Last night I got many frantic calls from well-wishers and journalists about a news item that I was interviewed by security. There is no cause for alarm,” Gumi wrote.

“Yes, we had a productive interaction on how to curb banditry as we are all trying -each in his sphere – to tackle the monster bedevilling the nation. There was no animosity but courtesy and full of respect.

“We all need as a nation to unite and work in synergy to achieve an everlasting peace. Thank you for your concern. May Allah continue to protect us all from all evil. Amin.”

Gumi has appeared as a controversial personality following his disposition in persuading the federal government to have negotiations with the bandits terrorising the North West of the country.

The scholar had said many times that the government should give amnesty to bandits so that they can drop their arms, as it was done by former President Musa Yar’Adua to the former militants in Niger-Delta.

While Nigerians decried the worsening insecurity in the North in which bandits kidnap women and children for ransom, Gumi said negotiating with bandits is the solution to the problem.

President Bola Tinubu has condemned the reprehensible acts perpetrated by kidnappers across the country, declaring that individuals involved in such despicable crimes must be treated as terrorists.

The President made the declaration on Tuesday at a Ramadan dinner with members of the Federal judiciary led by the Chief Justice of Nigeria (CJN), Justice Olukayode Ariwoola.

The dinner was attended by serving and retired judicial officers, including two former CJNs, Justice Mahmud Mohammed and Justice Walter Onnoghen.

Reiterating the government’s resolve to defeat banditry, the President said those who resort to kidnapping children are cowards, incapable of confronting the might of the Nigerian Armed Forces.

President Tinubu, in a statement by his spokesman, Chief Ajuri Ngelale, was quoted as saying, ”We must treat kidnappers as terrorists. They are cowardly. They have been degraded. They look for soft targets. They go to schools and kidnap children and cause disaffection. We must treat them equally as terrorists in order to get rid of them, and I promise you we will get rid of them.”

On the review of salaries of judicial officers, the President pledged that his administration would continue to implement necessary reforms to improve the welfare and working conditions of judicial officers.

He said, ”I recognize that the judiciary has one of the most unrewarded responsibilities. They are yet to modernize equipment and recordkeeping, and their progress towards improvement is slow.

”When you look at the career path of a judicial officer, they cannot practice the vocation for which they were trained after retirement.

”While the framers of the law may have their reasons, I perceive this differently and see this from a fair compensation angle that should benefit all.”

President Tinubu expressed gratitude to the judiciary for their dedicated service to the nation, acknowledging their role in upholding the respectability of the judicial arm of government.

“We will continue to support one another and bring Nigeria to that glorious dawn,” the President concluded.

The Chief Justice of Nigeria commended the President for the honour of hosting judicial officers to a Ramadan dinner, his commitment to judicial reforms, and for improving the welfare of judicial officers in the country.

“May the Lord continue to bless you and your administration. Let your ship land and berth beautifully. We shall continue to pray for your administration because there are many good things in the pipeline for Nigerians,” he prayed.

Justice Ariwoola commended the administration for achieving a significant milestone by appointing a full complement of 21 justices to the Supreme Court, a feat he described as unprecedented.

Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice, expressed gratitude to the President for forwarding the executive bill titled, “Judicial Office Holders, Salaries and Allowances, etc, Bill 2024” to the National Assembly.

Highlighting the stagnant state of judges’ salaries and emoluments since 2007, Fagbemi commended the President’s courage, determination, and compassion in taking decisive action.

”It takes a man with a great heart, determination, and consideration to do what the President did. More than 300.3 percent increase has been given to the judges. The President has done his own part, never mind that the bill is still with the National Assembly.

”In my short stay as the Attorney-General, I have come to observe that anything that concerns the judiciary, you are very much interested in it, and I thank you for your abiding interest in the judiciary,” the Minister of Justice said.

The Mali national football team completely outplayed the Super Eagles of Nigeria in an international friendly on Tuesday night, March 26.

Ahead of the international friendly, most football enthusiasts expected that it would be an easy one for the Super Eagles given their 2-1 win over Ghana barely four days ago.

Unfortunately for the Nigerian team, they couldn’t record a successive back-to-back win at the Grand Stade de Marrakech in Morocco as coach Finidi George’s 3-4-3 formation fell flat to the lowly rated Malian team.

During the game, Mali proved to be more composed and had better passing accuracy than the Eagles’ side who were loaded with Europe-based players. The attacking trio of Alex Iwobi, Kelechi Iheanacho, and Moses Simon were starved of killer passes in the eighteen-yard box.

22-year-old El Bilal Touré opened the scoring in the 18th minute as the Malian dominated most of the first half.

Moses Simon was replaced by Cyriel Dessers in the 34th minute after suffering a knock in Mali’s penalty box which the referee didn’t deem worthy of a spot-kick.

While the Super Eagles were trying to put passes together and attempt a comeback, Mali grabbed the ball and launched a counter which 21-year-old Kamory Doumbia completed to make it 2-0 in the 87th minute.

The goal sealed the victory for Mali as coach Finidi George failed to convince the Nigeria Football Federation (NFF) beyond a reasonable doubt that he deserves to be named Eagles’ permanent coach.

Former African Footballer of the Year, Victor Ikpeba, has said Super Eagles interim coach Finidi George is on the right track to becoming the team’s substantive coach.

Finidi took charge of the team for a 2-1 win over Ghana in an international friendly last Friday.

This follows the exit of Jose Peseiro, who led Nigeria to the 2023 Africa Cup of Nations earlier this year.

Ikpeba, speaking on Monday Night Football, said: “I am happy with what Finidi is doing with the Super Eagles. I am in the system and I know what he’s doing. Don’t forget that I am in the committee set up to do the right thing.

“From what I have seen from the players’ comments, it’s looking good for Finidi George.

“As I speak right now, I think it’s looking good for him. Mind you. I am not the decision-maker, I am one of the people who will advise the NFF. but it’s looking good for Finidi.”

Finidi will be in charge again on Tuesday night when the Eagles play Mali in another international friendly.