Financial institutions that have started raising capital have stated that they will allocate $1.20bn from the proceeds to invest in technology and bolster their cybersecurity infrastructure.

This was indicated in the offer prospectus of five lenders that have commenced their capital raise, to meet the new capital requirement of the Central Bank of Nigeria.

In late March, the CBN announced new capital requirements for the banks operating in the country.

The apex bank directed commercial banks with international authorisation to increase their capital base to N500bn, national banks to N200bn and those with regional authorisation were expected to achieve a N50bn capital floor.

CBN gave the financial institutions two years to achieve the target and three options: raising additional capital, mergers and acquisitions, and licence upgrade or downgrades. According to PwC, there is a significant capital shortfall of N4.2tn across all licence categories, as much as between 35 per cent and per cent of the new minimum capital.

An analysis of the offering documents showed that Guaranty Trust Holding Company had budgeted the highest amount to be invested in technology.

GTCO offered nine billion ordinary shares of 50 each at N44.50 per share with the intent to raise about N400.50bn.

Of its net proceeds of N392.49bn, the holding company said 94.3 per cent of the proceeds (N370bn) would go towards the recapitalisation of its banking subsidiary, GTBank, while the remaining 5.7 per cent would be on the acquisition of pension fund administration and asset management businesses.

The offer document revealed that GTBank intends to spend N98.50bn (26.6 per cent) of the net offer proceeds on technology infrastructure upgrades, with a majority of it going towards, “Core banking application implementation, associated hardware infrastructure, network architecture, and ancillary costs related to optimisation of data centre/disaster recovery centre.”

Meanwhile, information security & fraud prevention and detection software get about N15bn (4.1 per cent) of the net proceeds.

Access Holdings indicated that 20 per cent of the net proceeds from its rights offer (N343.09bn) would be invested in IT infrastructure upgrades and development.

About N41.17bn would be invested in network infrastructure and N27.48bn in cybersecurity capabilities, bringing the total spend on IT to N68.62bn.

A significant portion of the net proceeds would go towards local and international business expansion (N223.01bn).

Zenith Bank Plc said that the proceeds of its offering would “enable the bank to conclude the overhaul of its information technology infrastructure and provide additional working capital to support its expanding operations and enable the Bank to take maximum advantage of emerging opportunities”.

For investment in technology, Zenith Bank noted that it would spend about 20 per cent of the net proceeds, N99.27bn, which amounts to N19.85bn.

A breakdown showed that Zenith Bank planned to spend N8.93bn on computer hardware/servers, N3.97bn each on software licences, registration and network infrastructure upgrades and another N2.98bn on cybersecurity architecture/software.

Fidelity Bank, which has closed its offering, planned to invest about N19.01bn in IT infrastructure, which is about 20 per cent of the net proceeds from the offering.

The bank, which raised about N127bn in its combined offer, said that it intended to invest N9.03bn in cybersecurity capabilities, N7.60bn in software licences and hardware and N2.38bn as additional investment in its network infrastructure.

Of the five banks reviewed, FCMB Group has the least amount budgeted for technology at N16.22bn (15 per cent of the net proceeds). About N11bn would go to upgrade its information technology infrastructure and N5.23bn towards investment in cybersecurity capabilities.

Fresh budgets for IT infrastructure are being allocated amid a recent surge in attacks on banks’ technology infrastructure, resulting in financial losses and subsequent legal actions.

Also, days ago, GTB confirmed that there was an attempt to compromise its website, which left customers unable to access online services. 

The bank, in a mail, reassured its customers that the hacking attempt was not successful and that its website was not cloned.

“While there was an isolated incident of an attempt to compromise our website domain, we would like to reassure our customers and stakeholders that the bank’s website has not been cloned and that we do not store customer information on our website, and as such, there has been no instance of compromise of customer data,” GTB said in the statement.

The International Monetary Fund’s Global Financial Stability Report in April indicated that the risk of extreme losses from cyber incidents was increasing.

“Such losses could potentially cause funding problems for companies and even jeopardise their solvency. The size of these extreme losses has more than quadrupled since 2017 to $2.5bn and indirect losses like reputational damage or security upgrades are substantially higher,” another IMF report said.

Meanwhile, the reviewed banks intend to spend about N22.94bn on the offer costs to raise a combined N1.06tn.

Offer costs include all costs, expenses and taxes on them, stamp duty, spending on underwriting, legal, accounting, printing, distribution, filing and registration fees, marketing and advertising expenses and other miscellaneous expenses.

Following the recent cases of fake certifications uncovered by the Joint Admissions and Matriculation Board (JAMB), examination boards in Kenya and Uganda are now reaching out to the country to verify the credentials of Nigerians applying for admission to tertiary institutions in their countries.

JAMB made this known in a document: ‘Registrar’s Report on 2023 ADMISSION & 2024 UTME Policy Meeting,’ document on Wednesday, Channels TV reports.

According to the document, JAMB stressed the need to protect Nigeria’s tertiary institutions from international disrepute, adding that it would not falsify the records of any students.

“Uganda and Kenya examination boards are now writing to JAMB to confirm records presented by candidates for admission of candidates. JAMB would not falsify record,” the Nigerian examination body stated.

The Federal Government recently suspended the verification of degree certificates from Uganda, Kenya, Benin Republic, Togo and some other countries over allegations of certificate racketeering.

This followed an investigation by a Daily Nigeria reporter, Umar Audu on how he obtained a degree within six weeks in the Benin Republic.

After his report, the Federal Government set up an Inter-Ministerial Investigative Committee on Degree Certificate Milling to probe the activities of certificate racketeers.

LEADERSHIP consequently reported that JAMB threatened to sanction higher institutions that fail to submit lists of students admitted immediately after matriculation.

According to JAMB’s Public Communications Advisor, Fabian Benjamin, the initiative is one of the recommendations made by a committee set up by the Federal Government to combat fake degree racketeering in the country.

According to a ‘Clarification On Disclosure Of Admitted Candidates Outside Caps (2017-DATE)’ by JAMB obtained, institutions are to “regularly submit their matriculation lists to the Federal Ministry of Education not later than three months after matriculation ceremonies.”

The list is expected to be submitted through the dedicated channel of JAMB.

“The Board has observed a large number of candidates thronging its offices to resolve issues related to the disclosure of candidates admitted outside the Central Admissions Processing System (CAPS) from 2017 to date. While we appreciate the enthusiasm, we must correct the misconception that the focus is on candidates’ actions. The true emphasis lies with the institutions, which must disclose all candidates admitted outside CAPS before the August 31st, 2024 deadline.

“This directive requires immediate attention and compliance. We urge institutions to carefully review our initial letter and ensure full compliance, as failure to disclose will result in severe consequences. Candidates are also reminded not to accept admissions outside CAPS.

“The Board reiterated that candidates not disclosed by institutions would not be entertained. The Board will not tolerate any condonement of undisclosed admissions moving forward.”

In a similar development, a memo addressed to the JAMB on July 15, 2024, the education ministry said, “You may recall that following the publication of allegations of certificate racketeering involving some foreign institutions, especially in Cotonou, Benin Republic, and other countries, the ministry constituted an inter-ministerial committee to investigate the allegations to find lasting solutions.

“The committee has submitted its report and the Honourable Minister of Education has approved its recommendations for implementation.

“In that regard, I hereby convey the request of the honourable minister for the implementation of the following recommendations of the committee:

“Enforce the mandatory requirement for all tertiary institutions in Nigeria to exclusively conduct their admissions processes through the Central Admissions Processing System under the auspices of the Joint Admissions and Matriculation Board; mandate all tertiary institutions in Nigeria to regularly submit their matriculation lists to the Federal Ministry of Education not later than three months after matriculation ceremonies through the dedicated channel of the Joint Admissions and Matriculation Board.

“You are kindly requested to implement the above recommendations and furnish the ministry with implementation updates.”

[Leadership]

The Nigeria Customs Service (NCS) has reaffirmed that the federal government’s prohibition on rice importation via land borders remains firmly in place.

This clarification was made amid recent announcements concerning new fiscal measures aimed at food imports, specifically paddy rice.

Speaking during an inspection at the Apapa port in Lagos, Comptroller-General of NCS, Adewale Adeniyi, stressed that while the fiscal policies have been updated, they primarily focus on brown rice and paddy rice, allowing them to be imported duty-free.

However, these changes do not affect the existing ban on rice being brought into the country through land borders.

Adeniyi emphasized, “The new fiscal measures do not permit rice to be brought in through land borders. The only modification is that brown rice or rice paddy will now be allowed duty-free.”

He further explained that rice imported in smaller quantities via the seaports, especially by those with access to foreign exchange, does not fall under the Customs Service’s import prohibition.

Periodic inspections reveal rice being imported at the port, typically in smaller packages.

These imports, according to the Comptroller-General, are not covered by the prohibition act and are allowed under the new fiscal guidelines.

The NCS remains committed to enforcing this policy across all land borders, maintaining Nigeria’s push towards local production and food security.

There is widespread anger following the unveiling of the new Airbus A330 presidential jet purchased by President Bola Tinubu’s government.

DAILY POST recalls that the Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga had on Monday night, released the pictures of the presidential jet via his verified X handle.

According to him, the new jet replaces the 19-year-old Boeing B737-700 (BBJ) which was acquired by former President Olusegun Obasanjo during his tenure.

Tinubu’s aide claimed that the new jet saved Nigeria huge maintenance and fuel costs, running into millions of dollars annually.

Countering the claim that the jet was acquired without approval by the National Assembly, Onanuga said “the Nigerian Senate’s security and intelligence committee recommended replacing the ageing aircraft in the presidential fleet to reduce downtime and operational expenses”.

Our correspondent, however, reports that the claim does not align with earlier reports from the Nigerian Senate.

DAILY POST recalls that the Senate President Godswill Akpabio on June 27, declared that the upper chamber did not receive any request for the purchase of new aircraft for the president.

Nigerians had perceived the move by the presidency to get a new jet, but the Senate President vehemently debunked the report, saying there was nothing like that in their table.

Akpabio, who spoke after a closed-door meeting, said, “I have never had that correspondence to approve the purchase of a plane. We care about the President, we care about Nigerians.

“We will approve things that will benefit the people. There is nothing before us”.

Similarly the Senate leader, Senator Michael Opeyemi Bamidele (APC, Ekiti Central) said, “There is no such request, if the request comes, not only the Senate will debate it, we are 469 here. So this is the handiwork of the fifth columnist and propagandists.”

DAILY POST reports that there was no parliamentary debate prior to the arrival of the exotic presidential jet.

Although the presidency deliberately omitted the price of the jet, it was gathered that the Nigerian government spent over $100 million (N159 billion) to acquire the Airbus A330.

This is coming amid the ravaging economic downturn that has relatively made feeding difficult for millions of citizens.

Recall that Nigerians had earlier in the month staged a 10-day nationwide protest over hunger.

The untoward hardship was birthed by some unfavorable policies of the President Tinubu-led administration, particularly the removal of fuel subsidy which was announced on May 29, 2023.

Concerned citizens who reacted to the procurement of the new jet, accused the government of neglecting the plight of the citizens.

No argument can justify this latest profligacy – Ezekwesili

Former Minister of Education, Oby Ezekwesili on Wednesday said President Bola Tinubu has no argument to justify the purchase of the Airbus A330

Ezekwesili said no argument from Tinubu will persuade Nigerians into justifying what she termed “latest profligacy.”

Posting on X, Ezekwesili wrote: “No argument justifies the purchase of a 14 year old Airbus plane by the @NGRPresident @officialABAT for his indulgence.

“No argument that can persuade reasonable people justifies this latest profligacy.

“Continue with your obscene indulgence until the Day your hungry citizens can no longer bear to sleep on their empty stomachs.

Tinubu acting like Sani Abacha pro max – Adeyanju

Activist lawyer, Deji Adeyanju on Wednesday while reacting to the purchase of the new Presidential jet, an Escalade bulletproof vehicle, and a Yacht accused President Tinubu of acting like former Military Head of State, Sani Abacha pro max within one year of assuming power.

Posting on his Facebook page, Adeyanju wrote: “Critics don’t make good leaders. If in doubt, just look at Tinubu. The guy is acting like a Sani Abacha pro max just under one year. A hypocrite that can’t take what he gives.

“Just got back to Abuja from Lagos and saw Tinubu’s outrageously huge presidential jet.”

Tinubu bought private jet, bulletproof car in one year but Nigerians suffering – Sowore

A former presidential candidate of the African Action Congress, AAC, Omoyele Sowore, on his part, knocked Tinubu’s government for procuring a Presidential jet and a bullet proof vehicle within one year in office despite the failure to tackle the economic crisis bedeviling Nigerians.

Sowore said Nigerian leaders were only concerned about meeting their personal desires and not what the citizens were going through.

The activist cum politician, who was one of the key organizers of the just concluded EndBadGovernance protests, disclosed this in a series of posts on his X page.

According to Sowore: “Asiwaju Bola Ahmed Tinubu said one year isn’t enough for Nigerians to enjoy a better country but look at what he bought for himself in just one year.

“Yacht, jet, Bulletproof Escalade, mansion for VP #RevolutionNow.

“Day of fun at the expense of suffering Nigerians, @officialABAT jumbo luxury Presidential Jet arrives Nice, France. #France #EndBadGovernanceInNigeria #FearlessInOctober #RevolutionNow

“The only thing that makes these thieving rulers in Nigeria happy is when they fulfil their personal desires; they don’t care about the people.

“It is the time for the people to bond and take them head-on. #FearlessInOctober #EndBadGovernanceInNigeria 2.0.”

They don’t care about us – LP chieftain, Okon Fredrick

Similarly, a chieftain of the Labour Party, Mr Okon Fredrick said the move by the government to purchase an exotic jet amid the hardship in the country showed that the government officials did not care about the citizens.

In a chat with DAILY POST, Okon said, “leadership is by example. Tinubu had consistently appealed to Nigerians to be patient with his government, yet he is not patient enough to continue using the old jet.

“Like the singer Micheal Jackson once said, ‘they don’t really care about us’, we are on our own. Nothing about us matters to them

“This is obviously the wrong time to be buying a presidential jet with such a huge amount of money. We just finished a round of protest trying to tell the government that we are dying of hunger.

“Just a few days after the protest was halted, the executive is flying a new jet of over N100 billion.

“The citizens are watching and one day, like Charly Boy usually says, their mumu go do.”

[DailyPost]