Godswill Akpabio, senate president, has hinted that the upper legislative chamber may consider lifting the suspension on Abdul Ningi, senator representing Bauchi central.

Akpabio spoke on Friday upon his return to Abuja from the Inter-Parliamentary Union (IPU) general assembly in Geneva, Switzerland.

BACKGROUND

Early this month, Ningi sparked controversy when he alleged that the 2024 budget was padded by N3 trillion and that the country is operating two budgets concurrently.

Subsequently, the senate debated the matter at the “committee of the whole”.

The senator was thereafter suspended for three months for allegedly not providing evidence to back his allegations.

NINGI THREATENS TO SUE AKPABIO

In a letter dated March 27 and addressed to Akpabio through Femi Falana, his counsel, Ningi gave the senate president a seven-day ultimatum to lift his suspension from the upper legislative chamber.

Ningi described his suspension as “illegal”, saying he would approach a federal high court for his reinstatement if the suspension is not lifted within seven days.

“Apart from violating our client’s fundamental right to a fair hearing, the Senate violated the right of the entire people of the Bauchi Central Senatorial District to representation in the Senate for three months,” the letter reads.

“This is a breach of section 111 of the Constitution and article 13 of the African Charter on Human and Peoples Rights Act.

“As you are no doubt aware, the Federal High Court had struck down the suspension of some members of the Senate and the House of Representatives who had accused the leadership of both houses of corruption or abuse of office.”

‘NINGI WILL JOIN US IN A FEW DAYS’

Speaking on Friday, Akpabio said although he was yet to receive the letter, he believes that Ningi will rejoin the senate in a few days.

“It is a parliamentary decision. I have not seen the letter yet,” Akpabio said.

“But senator Ningi is one of us. I mean what is suspension? I believe that in a few days, he will join us.

“So, there is no problem. It would be resolved amicably. The senate is a family.”

The Governor of Kebbi, Nasir Idris, has called for a change in how the nation’s revenue is shared.

The governor opined that states should receive a greater share than the federal government.

Idris said that a reassessment of the distribution formula of federal allocations would address the democratic aspirations of the people.

He said that this should be carefully examined, especially in the area of having the police force under the administration of state governments nationwide.

He said this during an interview with journalists in Abuja on Friday, expressing concern that the revenue-sharing formula heavily favoured the federal government at the expense of the states.

“A situation where the federal government takes 55 per cent of the total share of the revenue was, to say the least, unfair. We must look at the formula in order to meet our campaign promises to our citizens,” he said.

“When you look at it, the states and local governments are the closest to the people and most of the challenges faced directly by citizens are handled by the states and local governments.

“It is in the state that you find the farmers, the artisans, and the poorest of the poor and it is our responsibility as governors to make life meaningful and worth living for them.

“So, I believe that the federal government has fewer responsibilities in terms of direct interaction with Nigerians. Governors and local government chairmen deal directly with the people and that is a huge burden on them.

“Our revenues should be shared in such a way that state and local governments that often have direct interactions with the Nigerian people should collect a higher percentage to meet their yearnings and aspirations,” Idris said.

Peter Obi, the presidential candidate of the Labour Party for 2023 elections has declared his stance on the recent national convention of the party that saw Barr Julius Abure emerge as national chairman.

Addressing Nigerians on X Space hosted by Parallel Facts on Friday, Peter Obi said he ignored the convention because the party leadership under Abure failed to do wide consultation with key stakeholders of the party before embarking on the said convention.

The former Anambra Governor emphasised the need for the right thing to be done to salvage the party, adding that he is more passionate about building a new Nigeria than building a new Labour Party.

“We promised to build Nigeria, we did not promise to build a New Labour Party,” he emphatically affirmed.

He also threw his weight behind the call for a structure for the ‘OBIdient’ movement.

“It is the standard practice around the world where movements form themselves into blocs and are part of the political process,” he added.

Recall the LP has been in crisis in recent times with many of its supporters calling for a proper restructuring of the party ahead of 2027.

The Central Bank of Nigeria has said that it recorded an inflow of over $1.5 bn into the economy over the past few days, indicating that its monetary policy efforts are working positively.

The bank’s acting Director, Corporate Communications Department, Mrs. Sidi Ali, made the assertions in a statement on Friday.

She noted that data available to the bank indicated that the inflow resulted from the bank’s effort to stabilise the foreign exchange market.

Ali said the naira has also continued to record gains in the Autonomous Foreign Exchange market as it traded at N1,309/$1 as against N1,611/$1 in the second week of March 2024.

The exchange rate between the naira and dollar closed at N1,534/$1 on the official NAFEM market on Monday, February 12, 2024. The current value of the naira shows a considerable appreciation.

Recently, the CBN held its 294th Monetary Policy Committee meeting where it decided to increase the interest rate by 200 points to 24.75 per cent from the previous 22.75 per cent.

During his post-meeting briefing, the CBN Governor, Olayemi Cardoso, also reiterated that the apex bank had cleared all verified foreign exchange backlogs, underscoring the fact that liquidity would improve in the forex market.

The bank conducted the Nigerian Treasury Bills auction of N1.64 trillion on Wednesday, at stop rates of 16.24 per cent, 17 per cent, and 21.124 per cent for the 91-day, 182-day, and 364-day tenors, respectively.

The decision to increase the interest rate raised lots of concern among citizens and economic experts but Cardoso said the bank’s decision was intended to stabilise the economy by bringing the interest rate at par with the current inflation in the country, stating that the increase would not be long.

“While the increase in interest rate may have tendencies toward strangulating the economy, with the foreign exchange rate coming down, that also helps to moderate it overall.

“And as I said earlier, you would expect that this would not be too long drawn; at least I would hope so. We are getting towards a situation where the exchange rate is moderating, and we are expecting it to moderate, and then it finds a level that, quite frankly, is sustainable. This would involve huge collaboration with the fiscal side because a lot of that cannot just rely on the monetary side alone,” the governor said.

While noting that Thursday’s rate signified that the Naira was headed in the right direction, Ali assured that the Cardoso-led CBN would remain committed to ensuring the stability of the market and the appropriate pricing of the Naira against other major currencies worldwide.

The Tinubu-led Federal Government have allegedly released the sum of N90 billion to subsidise the 2024 pilgrimage to the Kingdom of Saudi Arabia.

A source at the National Hajj Commission of Nigeria (NAHCON) told Daily Trust that without this intervention, each of the intending pilgrims would have been requested to add at least N3.5 million to the initial fare which was pegged at N4.9 million.

The source told the publication;

“The forex crisis has caused a lot of problems. That is why the Hajj Commission has asked intending pilgrims to pay the extra amount of N1.9 million each. The commission actually needed N230 billion to sort out the fare differential caused by the forex crisis.

“The N90 billion support which was provided by the government was announced in the presence of reporters during the inauguration of the board and management of the Hajj Commission which was held at the Office of the Vice Presidency on February 28, 2024. But they (reporters) were asked not to report it. That was why no newspaper carried the report. Or did you see it in any reports? If the intending pilgrims pay ₦1.9 million, it is then it can be balanced."

He added that NAHCON had also contacted state governors “to subsidise the hajj fare for the intending pilgrims in their respective states. Kano has responded by subsiding it by N500,000 for each pilgrim.

“By the previous calculation, the N90 billion given by the federal government can only subsidise 19,000 intending pilgrims by ₦3.5 million. But by spreading it on 50,000 pilgrims, it reduces it to N1.9 million; meaning that the federal government has subsidised each pilgrim by ₦1.6 million before each intending pilgrim was asked to add the remaining N1.9 million.”

A top official at the Presidency also confirmed that the federal government “actually provided some financial support for the hajj exercise”. The official said;

“Of course, the federal government has offered support for the pilgrims because the pilgrims have been lamenting.

“Normally, any support that the government is giving to any faith, whether the Christian faith or the Muslim faith, the government does not like to announce it openly so that it will not appear as if the government is favouring on faith.”

The Senator representing Bayelsa Central, Benson Konbowei, has been remanded at the Kuje Correctional Centre by a Federal Capital Territory (FCT) High Court sitting in Apo, Abuja.

The order was given by Justice Christopher Oba in a case bordering on alleged forgery of the National Youth Service Corps (NYSC) exemption certificate by the lawmaker.

Senator Konbowei was arraigned before the court on March 26, and he pleaded not guilty to the charge brought against him.

The court, however, granted the Senator N50m bail but ruled that he should be remanded at the Kuje Correctional Centre pending the perfection of the bail conditions.

In the charge marked: CR/028/2023, the Inspector General of Police accused Konbowei of fraudulently forging a document titled ‘Certificate of Exemption’ with number 000256454 and dated July 4, 2008.

The police said the Senator acted contrary to the provisions of Sections 366,156, and 158 of the Penal Code Act CAP 532 Laws of the Federation of Nigeria 1990 and was liable to punishment under Section 364 of the same Act.

Upon his arraignment earlier on Tuesday, the Senator pleaded not guilty to the charges.

The Senator was allowed him to go home and the hearing of his bail application was fixed for Thursday, March 28, 2024.

After listening to counsels in the matter, the Senator was granted bail by the court with two sureties in like sum.

The Judge in his ruling, said, “The law is settled that bail is the discretion of the court. Taking a look at the matter, it is not a capital offence.”

The judge said the sureties must own landed properties with Certificates of Occupancy in the Federal Capital Territory.

Justice Oba, however, ordered that the Senator be remanded in the Kuje Correctional Centre pending the perfection of his bail conditions.

The matter has been adjourned till June 24, 25 and 27 for hearing.

President Bola Tinubu has urged religious leaders to promote unity and avoid vilifying the nation in their sermons.

At an Iftar event in Abuja, he emphasized the constructive role of religious leaders in shaping public opinion and criticized those who denigrate elected officials without offering constructive criticism.

President Tinubu reaffirmed his administration’s commitment to tackling Nigeria’s challenges and emphasized the resilience of the nation against terrorism.

He reiterated that no terrorist can defeat the collective will of Nigerians, no matter how hard they try to prey on innocent citizens.

He urged traditional and religious leaders to forge a strong bond with the government to defeat terrorism, banditry, kidnapping, and other forms of criminality in the country.

”Yesterday in Abuja, I attended the burial of the 17 soldiers killed in action at Okuama, Delta State. I saw their pregnant wives and little kids.

”The love of the nation is in your hands. Pray for our country. Educate our children. The sermons we preach to the members of our churches and mosques are important.

”Do not condemn your own nation. As a Yoruba man and as our fathers will say, ‘no matter how slippery the bottom of your child is, you must leave the beads there.’

”Leave the beads there. This is your country; do not condemn it in sermons, do not abuse the nation. Leadership is meant for changes.

”Yes, this leader is bad, fine. Wait until the next election to change him, but do not condemn your country. Do not curse Nigeria. This is a beautiful land.

The President, who acknowledged the birthday wishes and goodwill extended to him on the occasion, reminded the leaders that his birthday on March 29, 2024, coincided with Good Friday.

”I have earned the honour of having my birthday fall on Good Friday, and I pray that on this Maundy Thursday, you all shall return to your homes safely. May God guide and keep you and your families in good health, and lift your spirits,” the President prayed.

Different speakers at the dinner expressed gratitude for the opportunity to come together in the spirit of Ramadan to share a meal with the President and renew the bonds of friendship that unite the nation.

Vice-President Kashim Shettima emphasized the pivotal roles of religious and traditional rulers in promoting peace and unity, urging them to continue to ‘‘build bridges that transcend ethnic and religious divides.’’

The Vice-President expressed delight that the nation’s economy is on a rebound, noting the strengthening of the naira against the dollar.

”The President means well for the nation, and he has continued to redefine the meaning and concept of modern leadership.

Former Italy international, Fabrizio Ravanelli, has insisted that Napoli will struggle to find a suitable replacement for Victor Osimhen.

Osimhen is expected to leave the reigning Serie A champions at the end of the season.
Premier League giants Chelsea and Arsenal as well as Paris Saint-Germain are reportedly interested in the reigning African Footballer of The Year.

Ravanelli, who labelled the Nigerian as one of the best forwards in the world believed it will be difficult for the Partenopei to replace him.

“Osimhen is among the best strikers in the world. He has incredible ferocity and is not afraid of anything. It will not be easy for Napoli to replace him”, Ravanelli said per Napoli Magazine.
Osimhen played a crucial role in Napoli’s Scudetto success last season.

The 25-year-old scored 26 goals in 32 league appearances to help the Partenopei win the title for the first time in over three decades.

The Confédération Africaine de Football (“CAF”) has announced the dates for the Finals of the TotalEnergies CAF Champions League and TotalEnergies CAF Confederation Cup 2023/24 season.

The Finals will be played on home and away basis in May 2024.

The First Leg of the TotalEnergies CAF Confederation Cup will be played on Sunday, 12 May 2024. The Second Leg of the TotalEnergies CAF Confederation Cup will be played the following weekend, Sunday, 19 May 2024.

The TotalEnergies CAF Champions League Final First Leg will be on Saturday, 18 May 2024. The Second Leg of the TotalEnergies CAF Champions League Final will be played on Saturday, 25 May 2024.

TotalEnergies CAF Champions League Final

First Leg: Saturday, 18 May 2024

Second Leg: Saturday, 25 May 2024

TotalEnergies CAF Confederation Cup Final

First Leg: Sunday, 12 May 2024

Second Leg: Sunday, 19 May 2024

Gives Banks 24 Months To Recapitalise

Barely 48 hours after restating the need to increase the capital base of Deposit Money Banks for improved productivity, the Central Bank of Nigeria has announced new guidelines on its recapitalisation policy for banks in the country.

The new guidelines were disclosed in a statement signed by its Acting Director, Corporate Communications, Sidi Ali, in Abuja on Thursday.

She said the apex bank had directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn.

According to the acting CBN director, commercial banks with national licences must meet a N200bn threshold, while those with regional authorisation are expected to achieve a N50bn capital floor.

Similarly, non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively.

The CBN’s move came two days after the Monetary Policy Committee hinted that it would change the capital base of the nation’s banks.

At the press briefing that followed the 294th MPC meeting on Tuesday, the CBN Governor, Olayemi Cardoso, urged DMBs to expedite actions to increase their capital base to strengthen the financial system against potential risk.

In its meeting, the committee noted that 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 recapitalisation to strengthen the system against potential risks in an increasingly globalised world.”

However, the latest CBN policy directive specifies that commercial banks with international authorisation are now required to shore up their capital base to N500bn.

The current capital base is stratified based on the type of banking licence – banks with regional, national, and international licences are currently expected to maintain the minimum capital bases.

The proposed increase in the capital base comes nearly two decades after the CBN’s 2004 banking reform, which increased the then-prevailing capital base from N2bn to N25bn.

The 2004 banking reform was characterised by massive mergers and acquisition activities, ultimately reducing the number of banks in the country from 89 to 25.

last year, indicated that Deposit Money Banks’ chief executive officers and other top executives had begun moves to raise fresh capital to bolster their respective institutions’ capital base through preliminary merger and acquisition talks.

Recall that in November 2023, Cardoso, at the 58th Annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria, announced plans by the apex bank to carry out a fresh round of banking recapitalisation for the Deposit Money Banks.

He said the policy was part of its efforts to strengthen its capacity to support Nigeria’s drive to become a $1tn economy by 2026.

At the dinner, Cardoso said, “Despite the challenging global and local economic environment, Nigeria’s financial sector has demonstrated resilience in 2023 with key indications of financial soundness largely meeting regulatory benchmarks.

“Stress test conducted on the banking industry also indicates its strength under mild to moderate scenario on sustained economic and financial stress. Although there is room for further strengthening and enhancing resilience to shocks.

“Therefore, there is still much to be done in fortifying the industry for future challenges. The economic agenda of President Bola Ahmed Tinubu’s mandate has set an ambitious goal of achieving a GDP of $1tn over the next seven years.

“Attaining this target necessitates sustainable and inclusive economic growth at a significantly higher pace than current levels. It is crucial to evaluate the adequacy of our banking industry to serve the envisioned larger economy. It is not just about its current stability. We need to ask ourselves, can Nigerian banks have sufficient capital relative to the finance system needed in servicing a $1tn economy in the near future, in my opinion, the answer is no, unless we take action. As a first test, the central bank will direct banks to increase their capital.”

Earlier in March, a report by Ernst and Young indicated that at least 17 out of the existing 24 Deposit Money Banks might be unable to meet the Central Bank of Nigeria’s capital requirement if it is increased from its current N25bn.

The new report, titled ‘Navigating the Horizon: Charting the Course for Banks amid Plans for Recapitalisation’ noted some banks might depend on different recapitalisation options, which include mergers and acquisitions, initial public offerings, placements and/or right issues and undistributed profit (retained earnings) despite the fact that financial soundness indicators show that Nigerian banks were largely safe and resilient as of 2023.

“On this basis, a worst-case scenario given a 15x capital multiplier for 24 banks will be considered based on the type of banking licenses held. We have benchmarked the current capital of these banks against the current capital requirement and four recapitalization scenarios,” it noted.

In spite of the possible disruption, the apex bank has gone ahead with it’s drastic move.

A circular signed by the Director, Financial Policy and Regulation Department, Mr. Haruna Mustafa, to all commercial, merchant, and non-interest banks and promoters of proposed banks emphasised that all banks were required to meet the minimum capital requirement within 24 months commencing from April 1, 2024, and terminating on March 31, 2026.

To enable them to meet the minimum capital requirements, the CBN urged banks to consider injecting fresh equity capital through private placements, rights issues and/or offers for subscription, Mergers and Acquisitions, and/or upgrade or downgrade of license authorisation.

Furthermore, the circular disclosed that the minimum capital shall comprise paid-up capital and share premium only. It stressed that the new capital requirement shall not be based on the Shareholders’ Fund.

“Additional Tier 1 Capital shall not be eligible for meeting the new requirement. Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio requirement applicable to their license authorisation.

“In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position,” it added.

The CBN circular said the minimum capital requirement for proposed banks shall be paid-up capital, adding that the new minimum capital requirement shall apply to all new applications for banking licenses submitted after April 1, 2024.

It noted that the CBN would continue to process all pending applications for banking licenses for which a capital deposit had been made and/or an Approval-in-Principle had been granted.

However, it said that the promoters of such proposed banks would make up the difference between the capital deposited with the CBN and the new capital requirement no later than March 31, 2026.

In an earlier interview with our correspondent, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, welcomed the move to increase banks’ capital base, adding that the current capital base was grossly inadequate.

He said, “The minimum capital requirements of the banking industry need to be reviewed in light of the considerable loss of value amid depreciating domestic currency. During the banking consolidation of 2004, the minimum capital requirement for banks was raised from N2bn to N25bn. The revised capital requirement was equivalent to $187m. Today, the same N25bn is the equivalent of just $32.5m.”

Also, Uche Uwaleke, a Professor of Capital Markets at Nasarawa State University, urged the CBN not to coerce banks into increasing their capital base, as was the case during the last recapitalisation drive; rather, they should be incentivised.

“The idea of recapitalisation of banks is a welcome one. Capital is needed to finance big-ticket projects, especially when the government targets a $1tn economy in a few years. But I think the strategy should be somewhat different from the approach adopted in 2005. It should be more about incentives than coercion,” he said.

Meanwhile, the CBN said all banks are required to submit an implementation plan (clearly indicating the chosen option(s) for meeting the new capital requirement and various activities involved with their timelines) no later than April 30, 2024.

The CBN also disclosed that it would monitor and ensure compliance with the new requirements within the specified timeline.