Cloned Nigerian Anchor

Author: Chike Ozohili

  • CBN unveils ‘SabiMONI’ platform to promote financial literacy, inclusion

    CBN unveils ‘SabiMONI’ platform to promote financial literacy, inclusion

    The Central Bank of Nigeria (CBN) has unveiled an e-learning platform, SabiMONI to promote financial literacy and to deepen financial inclusion.

    Speaking at the ceremony, the CBN Governor, Mr Godwin Emefiele said that the platform was a fully digital national e-learning platform that provided a knowledge base for financial literacy.

    According to him, SabiMONI is aimed at providing individuals with the opportunity to be trained and to become Certified Financial Literacy Trainers (CFLT) through self-service.

    “The platform is aimed at supporting our efforts toward ramping up the number of experts that can be used to drive financial education in the country and perhaps beyond.

    “One of the key drivers of financial inclusion today, is no doubt financial literacy.

    “It is a prerequisite for greater financial inclusion, which would lead to the stability of the financial system and ultimately economic growth and development,” he said.

    Emefiele said that the absence of or low levels of financial literacy constituted an impediment to financial inclusion.

    “In other words, the pace of financial inclusion is directly related to the level of financial literacy and financial
    capability.’’

    He said that to address the financial inclusion gaps, the National Financial Inclusion Strategy 2022, identified increasing adoption and
    usage of financial services in priority demographics.

    He said that such demographics comprised of the most vulnerable segments such as women, youth, MSMEs and rural dwellers.

    “And especially, the Northern part of the country as well as expansion of digital financial services and platforms amongst its strategic priority areas.

    “To enable us to achieve these, we must take deliberate steps to upscale financial capability through financial education programmes.

    “The shortage of skilled and experienced persons to drive financial education remains a major hindrance.

    “Interestingly, the National Financial Inclusion Strategy 2022 places high priority on financial and digital learning.

    “This will serve as a strategy that would enable the creation of a conducive environment for serving or ensuring the inclusion of the most excluded groups,” he said.

  • Budget deficits, low revenue responsible for rising debt – DMO

    Budget deficits, low revenue responsible for rising debt – DMO

    The Debt Management Office (DMO) says decades of operating budget deficits by successive governments is responsible for Nigeria’s high debt profile.

    The Director-General of the DMO, Patience Oniha, said this on Sunday in Abuja.

    According to Oniha, a review of Nigeria’s fiscal data shows that not only has the government operated budget deficits which have been growing, but most of the deficits have been funded through local and external borrowing.

    “The records show that deficits in the annual budgets, including supplementary budgets rose to N10.78 trillion in 2023 from N1.62 trillion in 2015.

    “Between 82 per cent and 99 per cent of these were funded by new borrowing which ranged from N1.46 trillion in 2015 to N8.80 trillion in 2023.

    “These facts confirm that these budget deficits, funded by new borrowings, have been responsible for the rapid growth in the debt stock and the resultant increases in debt service,” she said.

    According to Oniha, this trend could have been avoided or at least moderated if revenues had been higher or expenditures lower.

    She tasked the incoming government of Sen. Bola Tinubu to take cognisance of the situation and prioritise increased revenue generation.

    “The budget deficits would have been much smaller, or Nigeria would have operated on a balanced budget.

    “It is therefore imperative that the incoming government takes into account the perennial budget deficits in the preparation of the Medium-Term Expenditure Framework (2024 – 2026) and the 2024 budget.

    “The government should also accelerate the growth in revenues to ensure debt sustainability,” she said.

  • NECA urges FG to reverse proposed tariff increases for manufacturing

    NECA urges FG to reverse proposed tariff increases for manufacturing

    The Nigeria Employers Consultative Association (NECA) has urged the Federal Government to suspend the implementation of its proposed tariff increases in the manufacturing sector.

    In a statement issued in Lagos, its Director-General, Mr. Adewale-Smatt Oyerinde, also called for the reversal of the 2023 Fiscal Policy Measures (FPM).

    He advised the government to revert to the 2022 FPM roadmap designed to lapse in 2024.

    The approved 2023 FMP includes Supplementary Protection Measures for the implementation of the ECOWAS Common External Tariff (2022 – 2026).

    It includes increased excise duty on alcoholic beverages, cigarettes and tobacco products; introduction of excise duty on single-use plastics and Import Adjustment Tax levy on vehicles of 2000 cc and above.

    Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed confirmed President Muhammadu Buhari’s approval of the 2023 FPM on May 12.

    NECA stated, however, that the newly-introduced FPM and tariff increases were not only worrisome, but also landmines for businesses in the affected sectors.

    “While the government’s new FPM will largely affect manufacturers, it also has the potential to disrupt organized private sector’s value-chain with consequential effects on Nigerians as a whole.

    “While we understand government’s revenue challenges, the proposed increases will spike production costs and reduce the competitiveness of Nigerian manufacturers in local and international markets.

    “With recent reports of unemployment rate hovering above 40 per cent, the economy will be further hard-pressed to withstand the likely loss of jobs that will follow these increases,’’ NECA stated.

    Its director-general stressed that the proposed increases, if implemented could aggravate smuggling and stifle growth of businesses in affected sectors.

    Oyerinde added that it could promote the production of fake products, reduce purchasing power of Nigerians and ultimately reduce government’s projected revenue across board.

    “With more than 60 different taxes and levies currently being paid by businesses, the best that government can do is not to overburden the sector or cause relocation of many more to other climes.

    “With about 20 bills pending at the National Assembly with financial implications for businesses, government will do well not to overburden the organised private sector.

    “The 2023 FMP, as proposed will neither promote economic growth nor achieve the long-term revenue projection of government,’’ Oyerinde stressed.

  • Proliferation of boreholes caused by Water Boards’ failure – NIWRMC

    Proliferation of boreholes caused by Water Boards’ failure – NIWRMC

    The failure of state water boards to provide water is the major cause for the proliferation of boreholes across the country, the Executive Director of Nigeria Integrated Water Resources Management Commission (NIWRC) Engr. Magashi Umar Bashir, has said.

    Bashir, who spoke during the working visit of the Minister of Water Resources in Abuja, pointed out that the NIWRMC, which is an agency under the supervision of the Federal Ministry of Water Resources, is collaborating with borehole drilling association to curb the menace of rampant drilling of boreholes particularly in city centres.

    “The commission cannot stop people from drilling boreholes in their houses. That is why you have all this proliferation of boreholes everywhere. That is also due to the fact that the Water Boards cannot provide water to the people,” he said.

    The NIWRMC boss mentioned that through the Water Use Licence issued, the commission has generated N73,669,110 from the year 2020 till date.

    While announcing plans to increase its revenue, he explained that the commission’s current revenue represents almost 100 per cent increase in revenues generated between 2015 and 2019.

     “The commission is aware of the revenue deficit in the nation’s revenue needs and is determined to make sure that users of raw bulk water pay the appropriate charges.

    “In pursuit of our enhanced revenue generation agenda, the commission has issued demand notices with expected income of N826,215,000,” he added.

    He further reiterated the commission’s commitment to provide equitable and sustainable development, management, use and conservation of Nigeria’s surface and ground water resources through a water allocation plan for Upper Benue, Lower Benue, Lake Chad catchment areas.

    The Minister of Water Resources, Engr. Suleiman Adamu, hailed the Commission for its giant strides in discharging its regulatory duties despite the ferocious pushback of vested interest.

    Adamu pointed out that the Commission could have achieved more in terms of effective implementation of regulations of water resources if the Water Resources Bill had seen the light of the day.

    He expressed concern over the politicising of the Water Bill which according to him, the refusal of lawmakers to pass the bill has deprived the nation of the reforms needed in the water sector.

    He vowed to continue to pursue the bill till the very end, saying the independence of the NIWRC is crucial to harness the full benefit of the Commission.

    “The bill is trying to democratise the process of Water Resources in the country. We will not relent until we will get to the bottom of this. We will continue to operate within the framework of the existing laws for now. The antagonists of the Water Bill cannot change that,” he stated.

  • FCTA pledges to harmonise tax regulations

    FCTA pledges to harmonise tax regulations

    The Federal Capital Territory Administration (FCTA) has said that it is determined to harmonise overlapping regulations within the various secretariats, departments, and agencies (SDAs) that are militating against the ease of doing business in Abuja.

    The Minister of the Federal Capital Territory (FCT), Muhammed Bello, made this known at the opening of a two-day retreat on the harmonisation of revenue and promotion of ease of doing business in the FCT.

    Bello was represented by the FCTA Permanent Secretary, Olusade Adesola, at event, which was organised by the FCTA.

    He noted that Abuja, being the mirror of the country, must be a model in the ease of doing business agenda of the administration.

    “One of the biggest challenges we face is the need to harmonise revenue collection across the FCT.

    “As you are aware, there are currently multiple agencies and departments responsible for collecting various types of taxes and fees from businesses and individuals. This has created confusion, duplication, and inefficiency, within the system.

    “The FCT IRS was created to meet this challenge amongst others. However, despite its current efforts, we all must appreciate that there is a lot of room for improvement which I am sure this retreat will look into critically and recommend ways for advancement in this regard.

    “I have no doubt that we shall make significant progress in the collective revenue generation and business promotion drive,” Bello said.

    The retreat, according to Bello, brings together a broad spectrum of stakeholders to rub minds and exchange ideas on how best to ensure the FCTA attains the highest IGR-generating sub-national status.

    “As you all know, the uniqueness and dynamism of the FCT attracts people and businesses from all over the world. It is the seat of the Nigerian government, a budding centre of commerce and trade, and a hub for innovation and creativity.

    “However, as with any growing and evolving city, there are challenges that we must address to ensure that the FCT remains competitive, efficient, and attractive to investors and entrepreneurs.

    “The FCTA has, over the last few years, embarked on some reform programmes to encourage the establishment and growth of small and medium enterprises in the nation’s capital.

    “Amongst them is the implementation of a digital platform for the issuance of permits, licences, and approvals known as the FCT business portal, which will allow businesses and individuals to apply for and receive all necessary permits and licences online, without the need for physical visits to government offices.

    “In addition, we are working to streamline and simplify regulations and procedures for business registration, property registration, and land use planning. These will help to create a more transparent, predictable, and efficient regulatory environment for businesses,” the Minister added.

  • NAICOM issues guidelines to drive innovation of goods, services

    NAICOM issues guidelines to drive innovation of goods, services

    As part of its strategic objective to drive innovation of products and services, ensure operators are professional in the conduct of their businesses in line with best practices, the National Insurance Commission (NAICOM) recently issued Insurance Regulatory Sandbox Operational Guidelines.

    NAICOM, in a statement signed by the Head, Corporate Communication and Market Development, Rasaaq ‘Salami, added that other guidelines issued are: the Market Conduct Guidelines for Takaful and Retakaful Insurance Operators and Enterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.

    According to the guidelines made available to our correspondent, it is explained that the Regulatory Sandbox Operational Guidelines is issued in exercise of the powers conferred to NAICOM Act 1997 and the Insurance Act 2003.

    The guidelines stated that the  Regulatory sandbox refers to a consciously established relaxed regulatory environment for the testing of innovative products, services, business models, channels of distribution subject to regulatory discretions and set parameters that have potential of improving insurance inclusiveness and service efficiency in Nigeria.

    The guidelines outlined that it is aimed towards providing insurance institutions, other firms and persons the opportunity to test business models, products and services that will enhance efficiency in meeting consumers’ needs.

    It will also help to encourage innovation that will drive financial inclusion and positive competition, and to promote and deliver economic benefits, by lowering the cost of business operations.

    The guidelines stated that an applicant will be eligible to be considered for the sandbox after meeting some criteria.

    “Must demonstrate the potential to advance inclusive insurance – The proposed product, service or solution is genuinely innovative with clear potential to advance the objectives of Inclusive Insurance by improving accessibility, efficiency, security and/or quality in the provision of insurance services to consumers in Nigeria.

    “The Applicant shall be a registered business in Nigeria, the applicant must have a Fit and Proper Management and Leadership, must demonstrate that it has conducted sufficient diligence to understand the potential risks and/or legal and regulatory requirements for deploying the proposed insurance product, service or solution

    “The Commission will accept applications from the following categories of applicants: Insurers, Insurance Brokers, Loss Adjusters, any other applicant as the Commission deems fit,” it read.

    The NAICOM spokesperson noted that the Commission expects all operators to ensure compliance with the new guidelines to the benefit of all stakeholders.

  • CBN debunks BVN expiration reports

    CBN debunks BVN expiration reports

    The Central Bank of Nigeria (CBN) has debunked reports that the Bank Verification Number (BVN) issued by the Bank in Nigeria has a ten-year lifespan.

    Nigerian Anchor reports that the CBN, in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), issued the BVN.

    According to a press release issued by the Ag. Director, Corporate Communications, Isa AbdulMumin PhD, “the BVN remains for life.”

    It urged bank customers in the country to continue using their unique identifiers as they last their entire lifetime

    “The attention of the Central Bank of Nigeria (CBN) has been drawn to reports suggesting that the Bank Verification Number (BVN) issued by the Bank, in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), expires after a ten-year period.

    “Contrary to these claims, we wish to clarify that the BVN issued in Nigeria has no expiry date. Once a customer’s biometrics have been captured and enrolled in the database of NIBSS, the BVN remains for life. However, the Regulatory Framework for BVN issued by the CBN in 2021 stipulates that customers can only change their records due to certain conditions spelt out in the document and after being cleared by relevant authorities.

    “Therefore, we urge bank customers in the country, especially those whose biometrics have been captured by the system, to continue using their unique identifiers as they last their entire lifetime.

    “Be guided accordingly,” the statement read.

    The BVN is an 11-digit number that is unique to each individual, but the same across all bank institutions for the same individual.

    To own and operate a banking account in Nigeria, you must first have a bank verification number.

  • FG adopts new automotive industry development plan 

    FG adopts new automotive industry development plan 

    The Federal Government has approved for implementation, the first-ever Nigeria investment policy (NInP), while adopting a new National Automotive Industry Development Plan (NADIP) that will span through 2023 to 2033.

    The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said this in a statement by Mrs Oluwakemi Ogunmakinwa, Deputy Director of Information at the ministry.

    Adebayo said both the national investment policy and the automotive industry development plan were given the necessary approval at the Federal Executive Council on Wednesday.

    He explained that trade and industry moguls over time agreed that there was a need to have an investment policy which would give confidence to investors in the country.

    Adebayo said: “What has been operational over the years is just investment-related regulations of Ministries, Departments and Agencies (MDAs) acting as a guide.

    “This harmonised policy will develop rapidly through industrialisation, and then snowball into a sustainable investment climate to attract the kind of investment we desire.

    “The primary focus of the investment policy is on investment promotion, facilitation and sustainable development and it would promote responsible investor conduct for sustainable development.

    “By influencing investor behaviour in compliance with globally acceptable standards relating to the environment, human rights, health, labour, safety, corporate social responsibility (CSR) and anti- corruption.”

    According to Adebayo, the 2023-2033 automotive development plan, will help the country migrate seamlessly from combustible engines into electric solar-powered engines.

     “This is an improvement on the 2013 automotive industry development plan, which was in place before,” said the Minister.

    “The National Automotive Design and Development Council (NADDC) developed the new plan to aggressively build on the successes that have been achieved so far in the Nigerian Automotive industry.

    “The new NAIDP will strategically provide outstandingly competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders”

    He said the newly approved NAIDP was aimed at enabling the exponential increase in the local production numbers of vehicles, reaching 40 per cent of local content.

    The minister said it would help attain 30 per cent locally produced Electric Vehicles, generate 1 million jobs, and enforce patronage of locally produced vehicles by the government and companies working on government contracts.

    He said it would also boost research and development and technology transfer.

    According to Adebayo, the country will soon start running a National Trade Policy that will guide trade in Nigeria from 2023-2027.

    He said this was basically a review of the old Trade Policy that was in place.

    He said the aim was to have a policy that would improve Nigeria’s trade within the World Trade Organisation and increase Nigeria’s capacity to GDP to bring in more revenue for the country.

  • PENGASSAN tasks incoming govt on rehabilitation of refineries

    PENGASSAN tasks incoming govt on rehabilitation of refineries

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the incoming government to ensure the completion of the ongoing rehabilitation of the nation’s petroleum refineries.

    President of PENGASSAN, Mr. Festus Osifo said this at the 7th Triennial National Delegates Conference of the association in Abuja.

    The theme of the conference is: ‘Equity and Social Justice; Advocacy for Equal Opportunities for all Workers”.

    Osifor said that completion of the ongoing rehabilitation of refineries and associated pipelines would be in the interest of the Nigeria’s economy.

    He said the union will also continue to advocate for the adoption of the NLNG model in the running of the Nation’s four Refineries when fully revamped.

    The union also called for the creation of an enabling environment for the establishment and operation of modular and private Refineries.

    “We are happy that the current NNPC management is favourably disposed to such. With the Dangote refinery, there will be a significant impact on the fuel supply dynamics.

    “This will also ease pressure on the economy, especially when combined with the ongoing revamping of the three refineries in the country.

    “The incoming government must do all within its reach to see to the conclusion of the current rehabilitation effort and initiatives that are currently in place so that our nation’s refinery will come up in no time,” he said.

    He charged the incoming administration of the President-elect, Sen. Bola Tinubu to ensure that the Petroleum Industry Act (PIA) was comprehensively implemented.

    He added that, as the new government comes in, the union urged it to fast track the implementation of different sections of the act to the benefit of Nigerians.

    “The provision of the act that will further deepen the development of the midstream sector of the Nigeria oil and gas industry should be aggressively implemented.

    “This will lead to the provision of gas infrastructure that will in turn aid gas development and help in harnessing the vast gas reserves in the country.

    “We warn that the implementation of the PIA must not be made to pass through arm-twisting tactical bureaucratic monsters that bedeviled the PIB. The Host Community Development fund and trust should be immediately constituted,” he said.

    Also speaking, the President of the Nigeria Labour Congress (NLC), Mr. Joe Ajaero called for greater solidarity and collaboration between PENGASSAN and other unions under in the Trade Union Congress (TUC).

    He said that this would enable the NLC and TUC to forge a stronger front in fighting for workers’ rights and welfare in the country.

    Also, the Chairperson of the event and an Executive Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mrs. Zainab Gobir called on everyone not to project Nigeria in a bad light.

    ”This will de-market our country. It is therefore important for us not to wash our dirty linens in public.

    Gobir said that people should find better ways to raise issues with the government, with a view to addressing them.

  • MTN mulls price increase over ‘elevated inflation’

    MTN mulls price increase over ‘elevated inflation’

    Telecoms group, MTN, has disclosed that it is planning to increase prices in some African markets due to the elevated inflation in the operating environment.

    Nigerian Anchor reports that the telecom company operates across 19 countries, including South Africa, Nigeria and Ghana.

    MTN disclosed this in its first quarter report filed with the Johannesburg Stock Exchange on Thursday.

    “We anticipate that trading conditions across markets will remain challenging for the remainder of 2023 and we will continue to execute on our proactive measures to manage the near-term challenges and risks.

    “Within this environment of elevated inflation, implementing selective price increases across the portfolio remains a critical priority to ensure that operations generate sufficient cash flows to fund future capital expenditure needed for building world-class networks.

    “We will continue to have the necessary engagements with the regulatory authorities on such needed increases,” it said in its outlook for the rest of 2023.

    The telecom company said that the blended inflation across its footprint remained elevated and averaged 18.5 per cent in Q1 2023, compared to 11.5 per cent in Q1 2022.

    Interest rates increased during the period as central banks acted to curb inflation.

    Higher inflation and interest rates weighed on consumers’ spending power and impacted business activity, the company said.

    “MTN’s resilient business model and operational execution enabled us to continue to successfully navigate difficult macroeconomic, geopolitical and regulatory conditions in Q1 2023.

    “Local currencies generally weakened against the dollar, and foreign exchange availability was limited in several of our key markets affecting the pace of capital expenditure and our ability to upstream dividends and management fees.

    “Over and above reduced economic activity in South Africa, MTN South Africa’s (MTN SA) network availability remained under pressure due to ongoing power outages across the country: there were approximately 90 days of load shedding in Q1 2023 compared to 14 days in Q1 2022,” the MTN Chief Executive Officer, Ralph Mupita, said in the statement.

    The Group spoke on the Nigerian market.

    MTN Nigeria drove strong commercial momentum in a challenging operating environment to deliver a strong financial performance in the period.

    “In addition to higher inflation and interest rates as well as challenges with the availability of hard currency liquidity, the Nigerian economy was also impacted by the Central Bank of Nigeria’s redesign and introduction of new naira notes from 15 December 2022. The limited availability of new notes resulted in cash shortages, which impacted customers’ ability to recharge through physical channels and transact within the MoMo agent network,” it said.

    MTN Group disclosed that in line with its Ambition 2025 strategy, it continuously assesses investments, to improve returns and reduce risk.

    Thus, MTN Group is evaluating an orderly exit of three operations in West Africa over the medium term; namely MTN Guinea-Bissau, MTN Guinea-Conakry and MTN Liberia.

    The Group has received an offer for our equity interests in these Opcos, from Axian Telecom, which is being evaluated.

    The company is also in the process of exiting Afghanistan through the sale of MTN’s entire shareholding to a wholly-owned subsidiary of M1.

    According to the report, MTN revenue rose 15.6 per cent to 53.83 billion rand ($2.8 billion) in the first quarter of 2023 compared to 45.69 billion rand in the first quarter of 2022, the company said.

    Total subscribers increased by 5.2 per cent to 290.6 million, active data subscribers up by 11.9 per cent to 140.4 million, Data traffic increased by 19.3 per cent to 3221.26 PB and fintech transaction volumes increased by 38.8 per cent to 4.1 billion.