E-Financial
Emefiele and the Burden of a Prophet

By Jackson Ugbechie
Dateline June 2015: Godwin Emefiele, the Governor of Central Bank of Nigeria (CBN), banned importation of 41 items which the apex bank classified as ‘not valid for forex’.

Mr. Godwin Emefiele, CBN governor
These items ranged from consumables like rice, poultry products, vegetables and processed vegetable products to building materials like cement, roofing sheets, etc.
The aim was to encourage local manufacture of these items, all of which can be produced locally. The other objective of the ban was to ease pressure on the nation’s foreign reserves. Crude oil (the major source of forex) was beginning to lose its allure in pricing. Simply put: national income (inflow) was shrinking perilously.
Today, by benefit of hindsight, it could be appropriately said that Emefiele was a prophet who saw tomorrow and quickly rallied his people to prepare for the impending storm.
Not long afterwards, the real storm came bearing down on global economies. Nigeria and other nations with huge reliance on crude oil revenues took a heavy shellacking from the storm.
Crude oil prices took a dip. From a mere dip to a free fall until it bottomed out at $27.67 in 2016.
Fast-forward 2020. Oil price is still low. Recovery has been sluggish, accentuated by the global Covid-19 pandemic. Nigeria with a population of about 200 million, low export, heavy import-dependent economy and a lifestyle that borders on flamboyance has been much hobbled by the oil price drop.
The naira is still under pressure but it could have been worse if CBN is still funding the importation of the over 40 banned items.
It could have been more difficult defending the naira in the forex market. This is the sense in which Emefiele deserves commendation for his uncommon boldness to stop the issuance of forex for the importation of these items.
Emefiele’s foresight, vision and strong anticipatory hunch has saved Nigeria from what could have been the worst economic crisis in human history since the Great Depression.
The decision to declare over 40 items ‘not valid for forex’ must have been a difficult one to take. But great leadership is about making tough calls; taking, sometimes, unpopular decisions.
Emefiele did that at the most auspicious time. It was contrary to the wishes of the advanced economies of the West which see Nigeria as their largest, most profitable market in Africa.
A policy to encourage local manufacture and patronage of locally made goods should be music to any patriotic Nigerian.
It will encourage honing of skills, create jobs in millions, stop the drain on our external reserves and ultimately shore up the sagging strength of the nation’s primary sector.
But you don’t expect such decision to go down well with the advanced nations whose major market in Africa was about to be shut.
This explains the baleful treatise conjured by The Economist magazine to deride the CBN policy. The usually opinionated UK magazine had in the wake of the ban on importation of over 40 items published a self-serving satire on Emefiele’s efforts to save the naira.
The copiously disingenuous article in The Economist tried to denigrate the CBN policy. But that was not enough to make Emefiele change his mind. The multiple-award winning central banker, convinced that the policy was in the best interest of the county, stuck to his gun.
He was unwavering. Now, Emefiele has been proved right and The Economist wrong. Nigerians are producing the banned items from grains to roofing sheets.
No matter the cynicism from those who preach classical textbook economic theories to Nigeria but act otherwise in their native countries, the truth is that foreigners cannot love Nigeria more than Nigerians. Emefiele proved this truism by raising the red flag when he foresaw the lurking economic turbulence.
The Nigerian naira dilemma is a peculiar mess created largely by a clan of crooked Nigerian elite, it will never go away by mere application of economic theories that never worked anywhere, even in the advanced West. The Nigerian problem can only go away by the application of well-thought through policies as Emefiele did.
To better appreciate the Emefiele magic, let’s consider this scenario. In 2013 at a time when crude price was $120 per barrel what CBN received to service the forex market from petroleum inflows either from petroleum products trading, royalty, taxes, NNPC etcetera was as high as $3.3 billion in a month. By June 2014 when external reserve had dropped to about $37 billion, what the nation got had dropped to less than $2 billion. Recall that the whole crisis started in July 2014 and by March 2015 when crude price had dropped to about $48pb, the nation’s reserve had gone down to $30 billion. At that point, what was coming in as forex which the CBN will use to service the market had dropped to about $1.3bn from about $3.3 billion in just over a year.
At that time, around January/February of 2015, CBN usually funds the forex market by Monday and Wednesdays with $200 million each of the days which is $400m in a week. At that time CBN was fighting the hostile market and saying we’ll defend the naira.
The inter-bank market was defending the market with about $100million per day which is $500 million per week. If you add that to the official buffer of $400m on the part of CBN, it adds up to $900m weekly. This means that in a month Nigeria needed $3.6 billion dollars minimum to fund the forex market and by interpretation fund importation.
As the price of crude continued its free fall, monthly outflow hit $4bn against an inflow of just $1.3 or $1.5 which brought net depletion of Nigeria’s reserve on a monthly basis to about $2.5 billion. If CBN had continued the depletion of our reserve from March 2015 by $2.5 billion monthly, by now Nigeria would have zero reserve. That is the stack reality.
And this is why Nigerians should commend the boldness and farsightedness of Emefiele to place a historical and landmark ban on over 40 items. Not only has he helped to boost backward integration, the policy eased pressure on the nation’s reserve.
Obviously, Nigerians are still paying dearly for their lavish lifestyle. Statistics from the National Bureau of Statistics (NBS) shows significant importation of certain items. In the half-year (January – June) of 2019, Nigerians spent a total of N334.3 billion to import prepared foodstuffs, beverages, spirits, vinegar and tobacco. NBS says within that period Nigeria imported 21 different items with the major items including live animals, animal products, vegetable fats and oil, prepared foodstuffs, beverages, mineral products, textiles, broilers and vehicles.
Broilers, machinery and appliances form the biggest import which was estimated at N2.11 trillion. Mineral product ranked second with N1.3 trillion import in half-year 2019. Other top items on the import list include vehicles, aircraft and parts (N1.06 trillion), cement (N599 billion), metals (N386.1 billion).
In recent past before the restriction, Nigeria spent an average of $22 billion each year on food (rice, wheat, sugar, fish etc) importation. The sad fact is that all of this money go to reflate the economies of Thailand, India, China and the West.
If all of this could happen with restriction, imagine the scenario if there were no restrictions. Emefiele is indeed an unsung hero. That’s the burden of a prophet who is barely appreciated at home.
But first Nigerians must change their exotic and outlandish lifestyle. No nation builds a strong economy on importation.
_ Ugbechie, public affairs analyst, writes from Abuja.
E-Financial
First Bank Spends N15Bn to Guard Systems against Hackers in 5 Months –CEO

First Bank HoldCo Plc has disclosed that it spent over ₦15 billion to protect its banking systems from cyberattacks between January and June this year, as digital threats to financial institutions continue to rise across Nigeria.

Mr. Olusegun Alebiosu, CEO, First Bank
Mr. Olusegun Alebiosu, chief executive officer of the bank, revealed this on Wednesday while speaking on the sidelines of a two-day National Seminar on Banking and Allied Matters for Judges, held in Abuja.
Alebiosu said the bank invested ₦3 billion in cybersecurity measures in June alone, part of a broader commitment to safeguarding customer assets and maintaining trust in Nigeria’s banking system.
The News Agency of Nigeria reports that the CEO said the bank had the most robust cybersecurity framework in the country, which justified the substantial investment.
Speaking on the rising wave of cyberattacks targeting banking systems, Alebiosu assured First Bank customers that their funds remained secure.
He also expressed concern over the growing involvement of some Nigerians in cybercrime, stressing the urgent need for the country to tackle the menace decisively.
He said, “No customer would lose their money in First Bank unjustly. If their money is missing from First Bank, First Bank will pay it back. Before I joined First Bank, I had an account with First Bank. One of the reasons why I had an account with First Bank was that I said to myself, if my money is missing, it is the only bank I know I will collect my money back without any excuses.”
Responding to customers’ complaints about delays in addressing cases of fraudulent transactions, Alebiosu explained that the bank must carry out thorough investigations involving multiple stakeholders.
He said the delays often stem from the need for collaboration between security agencies and the recipient banks to ascertain the facts surrounding each case thoroughly.
Alebiosu also advised customers to be cautious when handling and sharing their financial information.
“Customers themselves, most times, also compromise their own security details; I have seen a lot of people that give their cards to somebody to help them withdraw money from their ATM. They compromised their password, so when something happens and you say, my money disappeared, you forget the day you gave your card to someone else and they can use that to transfer your money,” he said.
“Some people even compromise their own ID on the system carelessly; some give their Bank Verification Number (BVN), and they use it against them.”
“Now, why does it take time for the bank to react? everything you give to the bank, the bank has to investigate it. The money might have gone to other banks, so you start tracking from other banks, but sometimes customers are impatient,” he said.
Regarding alleged fraud committed by staff, he stated that the bank uses internal employee fraud detection software to monitor staff activities on its systems.
He added. “If you knew how many of our staff we sack on a monthly basis, you wouldn’t believe it. So if there are triggers, people will be involved. It is for us to run faster than them and see how we can help to stop these kinds of things in our system but wherever we see it, we deal with it decisively.”
He stated that curbing cybercrimes requires the active involvement of various stakeholders, including banks, law enforcement agencies, and the judiciary.
E-Financial
SEC Flags Zugacoin, Samzuga GPT as High-Risk Meme Coins

Securities and Exchange Commission (SEC) has declared Zugacoin and Samzuga GPT—along with their variants SZCB and SZCB2—as unlicensed and unauthorized to operate within Nigeria’s capital market.
This is in a decisive move to protect investors from emerging threats within the digital asset space.
In an official statement issued on Wednesday, the Commission warned that these cryptocurrency products are being falsely promoted online without any regulatory approval or valid operational credentials.
“The promoters or issuers of Zugacoin and Samzuga GPT are not registered to operate in any capacity in the Nigerian capital market, and also Zugacoin and Samzuga GPT are not approved by the Commission for issuance to the public,” the SEC cautioned.
Following preliminary investigations, the Commission classified both Zugacoin and Samzuga GPT as meme coins a category of crypto tokens often devoid of real-world utility, tangible backing, or intrinsic value.
“Meme coins derive their value largely from online hype and community speculation,” the SEC explained, adding that such assets are highly susceptible to “pump-and-dump” manipulation schemes designed to deceive retail investors.
In these schemes, promoters artificially inflate the value of a digital token through exaggerated or misleading marketing, luring investors into a price rally.
Once the price peaks, the initial promoters exit, triggering a value collapse that leaves ordinary investors with heavy losses.
Reinforcing its investor protection mandate, the SEC urged the Nigerian public to exercise caution when engaging with digital assets and to avoid unregulated cryptocurrency offerings.
“Accordingly, the public is advised to refrain from engaging in the purchase or promotion of Zugacoin and Samzuga GPT or any of their variants, as any person who invests in the scheme does so at his or her own risk,” the Commission stated.
The SEC also encouraged prospective investors to verify the regulatory status of any crypto platform or asset via its dedicated verification portal before committing funds.
This latest development underscores the SEC’s intensifying oversight of Nigeria’s crypto landscape, particularly as the country grapples with the growing prevalence of unregistered virtual asset schemes targeting unsuspecting investors.
As global interest in digital currencies surges, Nigerian regulators are keen to strike a balance between innovation and investor protection, especially amid reports of rising fraud, volatility, and misinformation in the crypto space.
For Zugacoin and Samzuga GPT, the SEC’s message is unequivocal: without regulatory legitimacy, there is no place for them in Nigeria’s financial markets.
E-Financial
NIBSS National Payment Stack to Transform Nigerian Instant Payments

Nigeria Inter-Bank Settlement System (NIBSS) has launched the National Payment Stack (NPS), a payment infrastructure aimed at redefining digital payments in Africa and building on the introduction of NIBSS Instant Payments.
The NPS which is ISO 20022 compliant, also aims to transform quick and seamless payments across the nation.
NIBSS Instant Payments (NIP), Africa’s first real-time account-based digital payment system, was established 14 years ago.
The NPS continues this heritage.
Mr. Premier Oiwoh, managing director of NIBSS, stated during the launch in Lagos that the NPS was designed to get Nigeria ready for the digital payment future.
It’s a shift toward the future. We set the groundwork for Nigeria’s financial future with NPS, not simply another rapid payment system,” Oiwoh stated.
The NIBSS MD lists the following as some of the new payment platform’s features:
Instant settlements and real-time transactions
Using ISO 20022 for advanced payment message
Single and bulk payments on a single rail
A more effective mechanism for managing disputes
KYC validation via TIN, RC Number, or BVN
Direct Debit and Request-to-Pay features
Cross-border potential and multi-currency preparedness
Sandbox-enabled integration for partners in as little as 48 hours
Enhanced capacity for risk grading and fraud management
The strategic goal of developing the NPS, according to Oiwoh, is to promote innovation in digital payments, increase financial inclusion in the ecosystem, and boost government revenue collection, tax payments, and social intervention payments.
He continued by saying that an upgraded payment rail, like the NPS, is necessary to stimulate and get Nigeria ready for the future given its goal of creating a $1 trillion economy in eight years.
“Our goal of providing Nigeria and Africa with a platform that not only satisfies international standards but also takes into account our particular payment realities is reflected in the NIBSS Payment Stack.
“NPS is built to deliver smarter, faster, and more transparent payment experiences for everyone,” he stated, referring to Request-to-Pay, real-time settlements, automatic reconciliation, and improved dispute management.
Speaking at the ceremony, Mr. Philip Ikeazor, chairman of the NIBSS Board and Deputy Governor, Financial System Stability at the Central Bank of Nigeria, called the NPS an important and major turning point for the Nigerian financial ecosystem and NIBSS.
Ikeazor, who was accompanied by Mr. Musa Jimoh, the CBN’s Director of Payment System Policy, stated that the NPS establishes the groundwork for increased inclusivity, increased trust, and the upcoming wave of innovation in the digital payment space.
Speaking as well, Mr. Babajide Sanwoolu, governor of Lagos State, praised NIBSS for its capacity to unite diverse stakeholders in order to develop the domestic infrastructure.
This type of strategic relationship evolves to what Africa and Nigeria require to thrive in our constantly changing digital environment.
The governor, who was represented by Mr. Samuel Egube, deputy chief of staff, stated, “Lagos, the commercial hub of Nigeria, is thrilled to support innovations that make doing business easier, safer, more transparent, and more inclusive.”
We are expected to be aware that NIBSS, which was established in 1993 to offer the infrastructure necessary for smooth payments, settlements, and identity verification, is owned by the CBN and the nation’s deposit money banks.
With significant projects like the introduction of AfriGO, Nigeria’s national domestic card program, and the recent introduction of quick settlement on point-of-sale transactions for AfriGO cardholders, the organization has persisted in pushing the envelope of what is possible.
By facilitating richer data, enhanced transparency, and end-to-end traceability throughout the financial ecosystem, NPS, which was founded with interoperability at its core, promotes economic inclusion and payment system modernization.
Mr. Musa Jimoh, Director of Payment System Policy at the Central Bank of Nigeria, skillfully represented Chief Host Mr. Philip Ikeazor, Deputy Governor, Financial System Stability at the Central Bank of Nigeria and Chairman of the NIBSS Board, at the event. He gave a heartfelt and captivating welcome speech.
He welcomed the distinguished visitors with grace and urged them to unwind and take in the evening, which promised to be a display of creativity, teamwork, and cultural diversity. He continued by highlighting the importance of the National Payment Stack (NPS), characterising it as a turning point for Nigeria’s financial ecosystem as well as NIBSS; it establishes the groundwork for increased inclusion, deeper trust, and the upcoming wave of innovation in the digital payment space.
Lagos State Executive Governor Mr. Babajide Olusola Sanwo-Olu, ably represented by Mr. Samuel Egube, Deputy Chief of Staff, graced the launch event with live demonstrations of the National Payment Stack (NPS) functionalities and a goodwill message reaffirming the government’s commitment to fostering innovation in the digital payment space.
The CEO and Director General of the National identification Management Commission (NIMC), Abisoye Coker-Odusote, was also present and highlighted the critical role that digital identification plays in promoting national development and financial inclusion.
The AfricaNenda Foundation’s CEO, Dr. Robert Ochola, gave a powerful policy keynote address at the event. Jacqueline Jumah, AfricaNenda’s Director of Advocacy & Capacity Development, spoke on his behalf.
The future of digital payments in Nigeria and throughout Africa was examined in her speech and subsequent industry-led conversations.
Senior executives, directors, and deputy governors from more than 20 African central banks, national switches, and the AfricaNenda Foundation were welcomed to the occasion.
They are now in Nigeria for a five-day peer learning visit organized by NIBSS. Their presence demonstrated how important regional cooperation is to the development of inclusive, interoperable payment systems.
The National Payment Stack solidifies Nigeria’s position as a continental leader in promoting innovation, security, and interoperability as the global payment ecosystem changes.
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