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Banks, IOCs in Trouble for Defrauding FG of $63Bn

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The Senate is investigating some banks for alleged collusion with some international oil companies (IOCs) to defraud the country.

It was alleged that over $63 billion had been taken out of the country under suspicious circumstances between August 2009 and December 2014.

The “Investigation of the pre-shipment inspection of export activities in Nigeria” is being conducted by the Senate joint committee on Finance, Trade and Investment, Gas, Petroleum Upstream, Banking, Insurance and other Financial Institutions, Judiciary, Human Rights and Legal Matters, and Customs and Excise.

Our correspondent in Abuja  obtained document indicating that the affected banks were asked to submit all copies of certified Nigeria Export Proceed (NXP) issued/or processed by them in respect of all crude oil and gas exported by Nigeria Agip Company Ltd., Chevron Nigerian Limited, Shell Petroleum Development Company Nigeria Ltd. and their affiliates from April 1996 to December 2016.

The affected banks were also asked to submit all domiciliary accounts opened and /or closed within the period specified for all crude oil and gas exported.

Two banks, Citibank and Standard Chartered Bank appeared before the investigative joint committee on Thursday while other banks said to be associated with the export of oil and gas will also appear in due course. A document submitted to the committee, and obtained by our correspondent, shows that Citibank Nigeria operates domiciliary export proceed accounts for ENI Group (three accounts), Chevron Group (six accounts) and Shell Group (two accounts).

The document also shows that Nigerian Agip Oil Company recorded a total export inflow valued at $15,372, 882,703.36 Chevron Group recorded a total inflow valued at $44,020,596,289.99 while Shell Group made a total inflow valued at $3,516,237,425.79 giving total of $62,909,716,417 billion.

The committee resolved to go through documents submitted by the banks before coming up with its recommendations, as it expressed its determination to get to the root of pre-shipment inspection of export activities in Nigeria both in the past and in the present dispensation.

Senator Yusuf Abubakar Yusuf (Taraba State), who is a member of the joint committee, queried why funds brought into the country as oil export proceeds were wholly withdrawn a day after such proceeds were brought into the country.

According to him, the probe became imperative because the banks have the obligation under the law to ensure that petroleum products exporters do the right thing by obeying the guidelines and laws of the country.

“It is worrisome that money comes in today, tomorrow the same amount goes out of the country. The practice runs through statement of account submitted by the banks. The oil companies bring in $20 billion today; tomorrow $20 billion is taken out from the account.

“The banks are colluding with multinational oil companies to defraud the country. The government relies on the banks, but the banks are now colluding with the multinational oil companies,” the lawmaker stated.

The Chairman of the joint committee, Senator John Enoh, said that the committee was also interested to ensure that banks were not colluding with IOCs to flout the laws of the country. Enoh said that the committee would critically examine the submissions made by the banks to come to terms with the true position of oil and gas exports proceeds processes.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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