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Emefiele and Nigerian Youths: An Appraisal

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By Jackson Ugbechie

Central Bank of Nigeria (CBN), under the leadership of Mr. Godwin Emefiele, has come under attack recently.

Emefiele and Nigerian Youths: An Appraisal

Mr. Godwin Emefiele, CBN governor

Reason? The CBN applied and obtained court order to freeze the accounts of 19 individuals and a corporate entity in the wake of the recent #EndSARS protests across the nation.

Many Nigerians had commended the youths for their peaceful disposition during the protests and for their organisational skill until it was hijacked by some hoodlums who turned it into a wave of fury and violence.

The likes of Emefiele and other highly placed Nigerians including President Muhammadu Buhari hailed the youths for exercising their fundamental rights to engage in peaceful protest.

But the same Nigerians including the law-abiding youths also rose to condemn acts of violence and brigandage introduced in the protest by a few highly vicious persons.

The introduction of violence, whether by omission or commission, took so much virtue from the protest and tarred it with a veneer of destruction.

For the period the protests lasted, there was movement of money including trans-border transfers.

Such is expected during a national movement of the magnitude of the legitimate #EndSARS protests.

While acknowledging the right of the youths to protest peacefully under the law, we must also acknowledge the unlawfulness on the part of those who resorted to violence, robbery, arson and wide-ranging destructive acts.

Much more so, the illegality on the part of those who shot and killed fellow Nigerians (civilians and security personnel).

The act of killing is condemnable no matter who is involved.

Yet in all of this, it is also unfair not to acknowledge the right of the CBN and indeed any of the relevant financial crimes agencies to undertake investigations into the behaviour of the bank accounts of any person, entity or group suspected to have experienced unusual financial transactions (inflow and outflow).

This is the law. Indeed, the Banks and Other Financial Institutions Act, BOFIA, the CBN Act and even the Act setting up the Economic and Financial Crimes Commission (EFCC), confer on these institutions the power to red-flag any account.

In banking parlance, it’s called post-no-debit-order. In plain language, it means a temporary freezing of an account.

The EFCC Act, for instance, empowers the anti-graft commission to issue a directive to any bank to freeze the account of any of its customers who is under investigation.

What is key is that such directive must be made only after the EFCC has obtained an order of Court to that effect.

Again, the Act provides that this order can be obtained ex-parte, that is, without informing the affected party.

In the instant case of CBN vs the 20 #EndSARS entities, a court order was duly obtained by CBN from a court of competent jurisdiction.

The freezing was for a period not extending beyond what the law permits, and it was only to enable the apex bank and relevant agencies undertake investigation.

The CBN has only acted within the ambit of the law. Nobody has called anybody a money launderer.

The #EndSARS protest was not only a rage against police brutality; it was a symbolic expression of angst against the misgovernance of the nation over the years.

One of the planks of the argument against misrule in the nation is the absence of the rule of law; the inability of the ruling elite and their cronies to submit to the law.

As youths who want to show our failed leaders the path to nobility and good governance, we must not be seen to be above the law.

What CBN has done is the norm everywhere in the world including in the advanced nations that we often cite as examples where good governance is entrenched.

Everybody operates under the rule of law. The latest report that six Nigerians were convicted in the United Arab Emirates (UAE), for their roles in financing Boko Haram terror group, came as a consequence of investigation of their bank account transactions starting with freezing of such account.

So far, the CBN has not acted outside the law. We can only begin to blame the apex bank if after 180 days it is still holding down the accounts of the involved parties without any justifiable reason.

But I wager that CBN under Emefiele cannot willingly stand in the way of Nigerian youths.

On the contrary, Emefiele’s CBN remains one of the best, if not the best, youth-friendly institution in Nigeria.

Aside its many youth empowerment initiatives and capacity building programmes cutting across all frontiers, its Anchor-Borrowers’ programme has refocused many youths to embrace farming with all its value-chain economics.

Add to that the recently launched CBN-financed Nigeria Youth Investment Fund (NYIF). This is an ambitious and progressive N75 billion youth-targeted project designed by the Ministry of Youths and Sports Development and financed by the CBN.

The NYIF is a carefully designed initiative to improve access to finance for youths and youth-owned enterprises.

The target is to financially empower Nigerian youths within the age bracket of 18-35 years to generate at least 500,000 jobs in the country between 2020 and 2023.

This year alone, a chunky N12.5 billion take-off seed fund would be made available.

The Emefiele era at CBN represents the best moment for Nigerian youths. And this is not on paper.

It’s evidential with measurable and identifiable results.

It’s therefore most unfair to label Emefiele anti-youths.

He has been pro-youths far more than any CBN Governor in living memory.

Lawyers and activists who have criticized the freezing of accounts of the affected parties condemn the resort to ex-parte motion which they argue negates the natural course of justice of “hearing from the other party”.

Yet, that’s what the law says, to wit, that the CBN does not need to inform the affected party.

Therefore, rather than rail at CBN under Emefiele for acting in a manner we consider ultra vires even draconian, we should attack the law; not the institution that only obeyed such law.

This has been the argument of some of us, that some of our laws, including the constitution, need a thorough rejig. We should mind the root cause of the sickness, not the symptoms.

But no matter, when this whole storm fades away, history will judge Emefiele as the best youth-friendly Governor of CBN. It’s a case of res ipsa loquitor (the fact speaks for itself).

 

  • Jackson Ugbechie writes from Abuja

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E-Financial

UBA Appoints Henrietta Ugboh as Independent Non-Executive Director

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, has announced the appointment of Henrietta Ugboh as an Independent Non-Executive Director.

The appointment has been approved by the relevant regulatory bodies, including the Central Bank of Nigeria.

UBA’s Group Chairman, Tony Elumelu, CFR commenting on the appointment, said, “Henrietta Ugboh brings a track record of professional success, integrity and leadership, which will further strengthen the UBA Group Board, underlining once again the Group’s commitment to robust corporate governance.”

Ugboh holds a degree in Economics and Statistics from the University of Benin, an MBA from ESUT Business School, and is an alumnus of the Harvard Business School’s Executive Management Program. She has over 30 years experience in banking with Citibank and is an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria and a Fellow of the Institute of Credit Administration (FICA).

Elumelu added that with her considerable experience and expertise, which includes commercial banking, credit, and risk management, the UBA Board is delighted to welcome Mrs Ugboh to the Group Board, “We look forward to her invaluable contribution to the Group, as we continue to execute our unique growth strategy across Africa and globally.”

The Board also announced the retirement of Mrs. Owanari Duke, an Independent Non-Executive Director, who joined the UBA Group Board in October 2012.

During her tenure, Mrs. Duke provided distinguished leadership, serving on Committees of the Bank including the Board Governance Committee, Board Audit, Governance, Nomination & Remuneration Committee, Board Credit Committee, Finance & General Purpose Committee and Statutory Audit Committee.

On behalf of the board, Mr. Elumelu expressed UBA’s deep appreciation to Mrs. Duke for her dedication and significant contributions to the Group, wishing her the best in her future endeavour.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries.

With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and related banking services


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NDIC Begins Auction of Defunct Heritage Bank’s Landed Assets

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Nigeria Deposit Insurance Corporation (NDIC) has commenced process for the sale of landed properties and chattels of failed Heritage Bank, in a bid to ensure timely declaration of liquidation dividends to uninsured depositors.

NDIC Begins Auction of Defunct Heritage Bank’s Landed Assets

The exercise is pursuant to the corporation’s statutory powers as liquidator of failed banks under section 62 (1)(d) of the NDIC Act, 2023. It also comes after the exercise for the sales of physical assets of the defunct bank at its leased locations nationwide

According to a statement that was issued by NDIC, the sale of landed assets is by competitive bidding and will take place at the 36 affected locations of the bank across the country, from Wednesday, December 4, 2024.

The statement said buyers who wish to participate in the auction are expected to follow laid down guidelines aimed at ensuring transparency, fair competition, equity and accountability to enable recovery of commensurate values from the exercise. This is vital for the payment of liquidation dividends to eligible claimants.

In order to allow the continuation of provision of financial services to the Nigerian public at the locations of the closed bank towards bolstering financial inclusion, preference shall be given to financial institutions who are willing to buy any of the properties at the highest auctioned prices along with all the physical assets at wholesale value.

However, corporate bodies and private individuals willing to compete are equally eligible to compete in the process without prejudice, as the auction shall be open and competitive to all bidders.

Furthermore, bidders will be given opportunity to inspect the properties and chattels across all locations prior to disposal.

All interested parties are to make available 10% bid security of the value of their sealed bids to be dropped in the bid box provided at the various centres of the Corporation.

Interested bidders are advised to submit their bids at any of the designated NDIC offices in Abuja, Lagos, Bauchi, Kano, Enugu and Port Harcourt.

 

 

 

 


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Nigeria CPI, USD and Oil in focus

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By Lukman Otunuga, Senior Market Analyst at FXTM

With the US election done and dusted, the focus shifts back to key data from across the globe.

It will be a week packed with inflation figures from major economies, including the United States, China and Germany among many others.

But the spotlight shines on Africas 4th largest economy – Nigeria.

Inflationary pressures have been cooling in recent months but the latest figure for October is expected to have jumped 33.4%, from 32.7% in September. This may be the result of fuel hikes and floods in the northern part of the country affecting the harvest season.

The CBN has been on a mission to support the Naira and attract investments using aggressive monetary policy. Interest rates were raised by 50 basis points to 27.25% in September – marking its fifth consecutive hike in 2024. Should the Naira show signs of stabilizing, annual inflation could peak in the final quarter of this year.

Dollar set for volatile week?

Outside of Nigeria, our attention falls on the US Dollar Index (DXY) which could be rattled by key US data and Fed speeches including Jerome Powell.

Besides, it would be a crime to overlook the index after its aggressively bullish reaction to Trump’s US election win. Prices jumped almost 2% last week Wednesday on the “Trump trade” before giving back post-election gains as the Pound and Yen gained.

Note: The DXY tracks the dollars performance against a basket of six different G10 currencies, including the Euro, British Pound, Japanese Yen, and Canadian dollar.

With all the above said, the DXY could see more price swings.

* US October CPI report

The October US Consumer Price Index (CPI) report to be published on Wednesday 13th November could impact Fed cut expectations around lower US interest rates in December and beyond.

Markets are forecasting: 

  • CPI year-on-year (October 2024 vs. October 2023) to rise 6% from 2.4%in the prior month
  • Core CPI year-on-year to remain unchanged at 3%
  • CPI month-on-month (October 2024 vs September 2024) to remain unchanged at 2%
  • Core CPI month-on-month to remain unchanged at 3%.

Headline and core CPI inflation is expected to remain unchanged at 0.2% and 0.3% MoM in October, but the year-over-year headline number is expected to rise 2.6% from 2.4%.

Further evidence of cooling price pressures may support the case for another rate cut in December.

Traders are currently pricing in a 65% probability of another 25-basis point rate cut by the end of 2024.

A softer-than-expected US CPI report has the potential to drag the DXY lower. Should the CPI report beat market forecasts, the DXY could push higher.

Oil hit by China demand woes

Oil tumbled last Friday after Chinese stimulus measures disappointed investor expectations.

Brent shed roughly 1.6% last week as renewed concerns about demand in China and uncertainty over the impacts of Trump’s presidency weighed on the global commodity.

Last week, we discussed how Trump’s victory may pressure oil – possibly hitting oil producing nations like Nigeria. His return to the White House could result in higher domestic oil production while potential tariffs on China may impact global demand. This combination of rising supply and falling demand could enforce fresh pressures on oil which is down 4% since the start of 2024. Should oil prices continue to weaken, this could be a threat to countries who acquire a chunk of their revenues from oil sales.

 


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